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Allowance for Loan Losses | 12 Months Ended
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Dec. 31, 2023
Text Block [Abstract] |
Allowance for Loan Losses | NOTE 5 - ALLOWANCE FOR CREDIT LOSSES The following tables present, by portfolio segment, the changes in the allowance for credit losses, the ending allocation of the allowance for losses and the loan balances outstanding for the years ended December 31, 2023, 2022 and 2021. Allowance for credit losses:
December 31, 2023 |  | Beginning balance |  |  | CECL Adoption Day 1 Impact |  |  | Impact of Adopting ASC 326 - PCD Loans 1 |  | Charge-offs |  |  | Recoveries |  |  | Provision (Credit) |  |  | Ending Balance |
Commercial & Agriculture |  | $ | 3,011 |  |  | $ | 429 |  |  | $ | — |  | $ | (1,300 | ) |  | $ | 177 |  |  | $ | 5,270 |  |  | $ | 7,587 |
Commercial Real Estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner Occupied |  |  | 4,565 |  |  |  | 1,075 |  |  |  | 19 |  |  | — |  |  |  | 15 |  |  |  | (951 | ) |  |  | 4,723 |
Non-Owner Occupied |  |  | 14,138 |  |  |  | (2,847 | ) |  |  | — |  |  | — |  |  |  | 46 |  |  |  | 719 |  |  |  | 12,056 |
Residential Real Estate |  |  | 3,145 |  |  |  | 2,762 |  |  |  | 166 |  |  | (17 | ) |  |  | 134 |  |  |  | 2,299 |  |  |  | 8,489 |
Real Estate Construction |  |  | 2,293 |  |  |  | 1,502 |  |  |  | — |  |  | — |  |  |  | 37 |  |  |  | (444 | ) |  |  | 3,388 |
Farm Real Estate |  |  | 291 |  |  |  | (28 | ) |  |  | — |  |  | — |  |  |  | — |  |  |  | (3 | ) |  |  | 260 |
Lease Financing Receivable |  |  | 429 |  |  |  | 1,743 |  |  |  | 635 |  |  | — |  |  |  | — |  |  |  | (2,510 | ) |  |  | 297 |
Consumer and Other |  |  | 98 |  |  |  | 201 |  |  |  | 77 |  |  | (114 | ) |  |  | 43 |  |  |  | 36 |  |  |  | 341 |
Unallocated |  |  | 541 |  |  |  | (541 | ) |  |  | — |  |  | — |  |  |  | — |  |  |  | 19 |  |  |  | 19 |
Total |  | $ | 28,511 |  |  | $ | 4,296 |  |  | $ | 897 |  | $ | (1,431 | ) |  | $ | 452 |  |  | $ | 4,435 |  |  | $ | 37,160 |
1 Day 1 impact of $1,668 of adopting ASC 326-PCD loans was netted by changes in estimates of $771 |
For the year ended December 31, 2023, the Company provided $4,435 to the allowance for credit losses, as compared to a provision of $1,752 for the year ended December 31, 2022. The increase in the provision was to support strong organic loan growth in the portfolio. A one-time CECL adoption adjustment of $4,296 along with a $897 adjustment related to ASC 326 adoption was incurred in the first quarter of 2023. For the year ended December 31, 2023, the allowance for Commercial & Agriculture loans increased due to an increase in general reserves required for this type as a result of an increase in loan balances, accompanied by an increase in classified loan balances. The result was represented as an increase in the provision. The allowance for Commercial Real Estate – Owner Occupied loans increased due to an increase in general reserves required for this type as a result of increased loan balances, partially offset by a decrease in classified loan balances. The result was represented as an increase in the provision. The allowance for Commercial Real Estate – Non-Owner Occupied loans decreased due to a decrease in general reserves required as a result of an increase in loan balances, offset by a decrease in loss rates and classified loan balances. This was represented as a decrease in the provision. The allowance for Residential Real Estate loans increased due to an increase in general reserves required for this type as a result of increased loan balances. The result was represented by an increase in the provision. The allowance for Consumer and Other loans decreased due to a decrease in loan balances. This was represented as a decrease in the provision. Management feels that the unallocated amount is appropriate and within the relevant range for the allowance that is reflective of the risk in the portfolio at December 31, 2022. NOTE 5 - ALLOWANCE FOR CREDIT LOSSES (Continued) Allowance for loan losses:
December 31, 2022 |  | Beginning Balance |  |  | Charge-offs |  |  | Recoveries |  |  | Provision (Credit) |  |  | Ending Balance |
Commercial & Agriculture |  | $ | 2,600 |  |  | $ | (22 | ) |  | $ | 24 |  |  | $ | 409 |  |  | $ | 3,011 |
Commercial Real Estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner Occupied |  |  | 4,464 |  |  |  | — |  |  |  | 42 |  |  |  | 59 |  |  |  | 4,565 |
Non-Owner Occupied |  |  | 13,860 |  |  |  | — |  |  |  | 74 |  |  |  | 204 |  |  |  | 14,138 |
Residential Real Estate |  |  | 2,597 |  |  |  | (97 | ) |  |  | 163 |  |  |  | 482 |  |  |  | 3,145 |
Real Estate Construction |  |  | 1,810 |  |  |  | — |  |  |  | 4 |  |  |  | 479 |  |  |  | 2,293 |
Farm Real Estate |  |  | 287 |  |  |  | — |  |  |  | 6 |  |  |  | (2 | ) |  |  | 291 |
Lease Financing Receivable |  |  | 0 |  |  |  | (23 | ) |  |  |  |  |  | 452 |  |  |  | 429 |
Consumer and Other |  |  | 176 |  |  |  | (80 | ) |  |  | 27 |  |  |  | (25 | ) |  |  | 98 |
Unallocated |  |  | 847 |  |  |  | — |  |  |  | — |  |  |  | (306 | ) |  |  | 541 |
Total |  | $ | 26,641 |  |  | $ | (222 | ) |  | $ | 340 |  |  | $ | 1,752 |  |  | $ | 28,511 |
For the year ended December 31, 2022, the Company provided $1,752 to the allowance for loan losses, as compared to a provision of $830 for the year ended December 31, 2021. The increase in the provision was to support strong organic loan growth in the portfolio. Of this increase, $452,000 was provided to cover lease production from our CLF subsidiary since acquisition. Civista strengthened the reserve in 2020 due to the 2020 economic shutdown and restrictions in response to the ongoing COVID-19 pandemic. While conditions improved in 2021 due to vaccinations and booster shots, ongoing challenges due to supply chain and workforce shortages slowed the process improvement. Our risk profile has steadily improved since peak levels, but we remain cautious given the impact of higher inflationary costs, rising interest rates and other pre-recessionary conditions that impact loan customers. Our Commercial and Commercial Real Estate portfolios have been, and are expected to continue to be, impacted the most. For the year ended December 31, 2022, the allowance for Commercial & Agriculture loans increased due to an increase in general reserves required for this type as a result of an increase in loan balances, accompanied by an increase in classified loan balances. The result was represented as an increase in the provision. The allowance for Commercial Real Estate – Owner Occupied loans increased due to an increase in general reserves required for this type as a result of increased loan balances, partially offset by a decrease in classified loan balances. The result was represented as an increase in the provision. The allowance for Commercial Real Estate – Non-Owner Occupied loans increased due to an increase in general reserves required as a result of an increase in loan balances, partially offset by a decrease in loss rates and classified loan balances. This was represented as an increase in the provision. The allowance for Residential Real Estate loans increased due to an increase in general reserves required for this type as a result of increased loan balances. The result was represented by an increase in the provision. The allowance for Real Estate Construction loans increased due to an increase in loan balances. This was represented as an increase in the provision. The allowance for Consumer and Other loans decreased due to a decrease in loan balances. This was represented as a decrease in the provision. Management feels that the unallocated amount is appropriate and within the relevant range for the allowance that is reflective of the risk in the portfolio at December 31, 2022. NOTE 5 - ALLOWANCE FOR CREDIT LOSSES (Continued) Allowance for loan losses:
December 31, 2021 |  | Beginning Balance |  |  | Charge-offs |  |  | Recoveries |  |  | Provision (Credit) |  |  | Ending Balance |
Commercial & Agriculture |  | $ | 2,810 |  |  | $ | (15 | ) |  | $ | 165 |  |  | $ | (360 | ) |  | $ | 2,600 |
Commercial Real Estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner Occupied |  |  | 4,057 |  |  |  | — |  |  |  | 7 |  |  |  | 400 |  |  |  | 4,464 |
Non-Owner Occupied |  |  | 12,451 |  |  |  | — |  |  |  | 395 |  |  |  | 1,014 |  |  |  | 13,860 |
Residential Real Estate |  |  | 2,484 |  |  |  | (120 | ) |  |  | 302 |  |  |  | (69 | ) |  |  | 2,597 |
Real Estate Construction |  |  | 2,439 |  |  |  | — |  |  |  | 1 |  |  |  | (630 | ) |  |  | 1,810 |
Farm Real Estate |  |  | 338 |  |  |  | — |  |  |  | 12 |  |  |  | (63 | ) |  |  | 287 |
Consumer and Other |  |  | 209 |  |  |  | (24 | ) |  |  | 60 |  |  |  | (69 | ) |  |  | 176 |
Unallocated |  |  | 240 |  |  |  | — |  |  |  | — |  |  |  | 607 |  |  |  | 847 |
Total |  | $ | 25,028 |  |  | $ | (159 | ) |  | $ | 942 |  |  | $ | 830 |  |  | $ | 26,641 |
For the year ended December 31, 2021, the Company provided $830 to the allowance for loan losses, as compared to a provision of $10,112 for the year ended December 31, 2020. The decrease in the provision was due to the stability of our credit quality metrics coupled with the stabilization and, in some cases, improvement of international, national, regional and local economic conditions that were adversely impacted by the 2020 economic shutdown and restrictions in response to the ongoing COVID-19 pandemic. While vaccinations and booster shots in 2021 created some level of optimism in the business community, there remained uncertainty due to the continued concern over increased infections from the Delta and Omicron variants of COVID, and we remained cautious given the level of classified loans in the portfolio, particularly loans to borrowers in the hotel industry. The lingering economic impacts related to the COVID-19 pandemic included the loss of revenue experienced by our business clients, disruption of supply chains, higher employee wages coupled with workforce shortages and increased costs of materials and services. While some of the pressures eased in 2021, ongoing supply chain and staffing challenges, as well as inflationary pressures remained. Our Commercial and Commercial Real Estate portfolios have been, and are expected to continue to be, impacted the most. For the year ended December 31, 2021, the allowance for Commercial & Agriculture loans decreased due to a decrease in general reserves required for this type as a result of a decrease in loss rates. Commercial & Agriculture loan balances decreased during the year mainly from Civista’s participation in the PPP loan program. The result was represented as a decrease in the provision. The allowance for Commercial Real Estate – Owner Occupied loans increased due to an increase in general reserves required for this type as a result of increased loan balances, offset by a decrease in classified loans balances. The result was represented as an increase in the provision. The allowance for Commercial Real Estate – Non-Owner Occupied loans increased due to an increase in general reserves required as a result of an increase in loan balances, offset by decreases in classified loan balances and loss rates. This was represented as an increase in the provision. The allowance for Residential Real Estate loans increased due to an increase in loss rates for this type of loan. The result was represented by an increase in the provision. The allowance for Real Estate Construction loans decreased due to a decrease in loan balances. This was represented as a decrease in the provision. NOTE 5 - ALLOWANCE FOR CREDIT LOSSES (Continued) The following table present, by portfolio segment, the allocation of the allowance for loan losses and related loan balances as of December 31, 2022.
December 31, 2022 |  | Loans acquired with credit deterioration |  |  | Loans individually evaluated for impairment |  |  | Loans collectively evaluated for impairment |  |  | Total |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |
Commercial & Agriculture |  | $ | 6 |  |  | $ | — |  |  | $ | 3,005 |  |  | $ | 3,011 |
Commercial Real Estate: |  |  |  |  |  |  |  |  |  |  |  |
Owner Occupied |  |  | 3 |  |  |  | 6 |  |  |  | 4,556 |  |  |  | 4,565 |
Non-Owner Occupied |  |  | — |  |  |  | — |  |  |  | 14,138 |  |  |  | 14,138 |
Residential Real Estate |  |  | — |  |  |  | 1 |  |  |  | 3,144 |  |  |  | 3,145 |
Real Estate Construction |  |  | — |  |  |  | — |  |  |  | 2,293 |  |  |  | 2,293 |
Farm Real Estate |  |  | — |  |  |  | — |  |  |  | 291 |  |  |  | 291 |
Lease Financing Receivables |  |  | — |  |  |  | — |  |  |  | 429 |  |  |  | 429 |
Consumer and Other |  |  | — |  |  |  | — |  |  |  | 98 |  |  |  | 98 |
Unallocated |  |  | — |  |  |  | — |  |  |  | 541 |  |  |  | 541 |
Total |  | $ | 9 |  |  | $ | 7 |  |  | $ | 28,495 |  |  | $ | 28,511 |
Outstanding loan balances: |  |  |  |  |  |  |  |  |  |  |  |
Commercial & Agriculture |  | $ | 863 |  |  | $ | — |  |  | $ | 277,732 |  |  | $ | 278,595 |
Commercial Real Estate: |  |  |  |  |  |  |  |  |  |  |  |
Owner Occupied |  |  | 1,988 |  |  |  | 232 |  |  |  | 368,927 |  |  |  | 371,147 |
Non-Owner Occupied |  |  | 119 |  |  |  | — |  |  |  | 1,018,617 |  |  |  | 1,018,736 |
Residential Real Estate |  |  | 1,414 |  |  |  | 392 |  |  |  | 550,975 |  |  |  | 552,781 |
Real Estate Construction |  |  | — |  |  |  | — |  |  |  | 243,127 |  |  |  | 243,127 |
Farm Real Estate |  |  | — |  |  |  | — |  |  |  | 24,708 |  |  |  | 24,708 |
Lease Financing Receivables |  |  | — |  |  |  | — |  |  |  | 36,797 |  |  |  | 36,797 |
Consumer and Other |  |  | 1 |  |  |  | — |  |  |  | 20,774 |  |  |  | 20,775 |
Total |  | $ | 4,385 |  |  | $ | 624 |  |  | $ | 2,541,657 |  |  | $ | 2,546,666 |
The following tables represent credit exposures by internally assigned risk ratings for the periods ended December 31, 2023 and 2022. The risk rating analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled or at all. The Company's internal credit risk grading system is based on experiences with similarly graded loans. The Company’s internally assigned grades are as follows: • Pass – loans which are protected by the current net worth and paying capacity of the obligor or by the value of the underlying collateral. • Special Mention – loans where a potential weakness or risk exists, which could cause a more serious problem if not corrected. • Substandard – loans that have a well-defined weakness based on objective evidence and are characterized by the distinct possibility that Civista will sustain some loss if the deficiencies are not corrected. • Doubtful – loans classified as doubtful have all the weaknesses inherent in a substandard asset. In addition, these weaknesses make collection or liquidation in full highly questionable and improbable, based on existing circumstances. NOTE 5 - ALLOWANCE FOR CREDIT LOSSES (Continued) • Loss – loans classified as a loss are considered uncollectible, or of such value that continuance as an asset is not warranted. • Unrated – Generally, Residential Real Estate, Real Estate Construction and Consumer and Other loans are not risk-graded, except when collateral is used for a business purpose.
|  | Term Loans Amortized Cost Basis by Origination Year |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Revolving |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Loans |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Revolving |  |  | Converted |  |  |  |
December 31, 2023 |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | 2020 |  |  | 2019 |  |  | Prior |  |  | Loans |  |  | to Term |  |  | Total |
Commercial & Agriculture |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 56,359 |  |  | $ | 64,250 |  |  | $ | 52,258 |  |  | $ | 17,622 |  |  | $ | 9,516 |  |  | $ | 14,088 |  |  | $ | 82,982 |  |  | $ | — |  |  | $ | 297,075 |
Special Mention |  |  | 774 |  |  |  | — |  |  |  | 287 |  |  |  | 1,690 |  |  |  | — |  |  |  | 106 |  |  |  | 169 |  |  |  | — |  |  |  | 3,026 |
Substandard |  |  | 396 |  |  |  | 86 |  |  |  | 67 |  |  |  | 131 |  |  |  | 271 |  |  |  | 73 |  |  |  | 3,668 |  |  |  | — |  |  |  | 4,692 |
Doubtful |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total Commercial & Agriculture |  | $ | 57,529 |  |  | $ | 64,336 |  |  | $ | 52,612 |  |  | $ | 19,443 |  |  | $ | 9,787 |  |  | $ | 14,267 |  |  | $ | 86,819 |  |  | $ | — |  |  | $ | 304,793 |
Commercial & Agriculture: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  | $ | — |  |  | $ | 673 |  |  | $ | 532 |  |  | $ | — |  |  | $ | — |  |  | $ | 95 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,300 |
Commercial Real Estate - Owner Occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 36,030 |  |  | $ | 82,502 |  |  | $ | 67,904 |  |  | $ | 56,069 |  |  | $ | 29,784 |  |  | $ | 92,750 |  |  | $ | 5,844 |  |  | $ | — |  |  | $ | 370,883 |
Special Mention |  |  | 526 |  |  |  | 217 |  |  |  | 739 |  |  |  | 517 |  |  |  | - |  |  |  | 188 |  |  |  | — |  |  |  | — |  |  |  | 2,187 |
Substandard |  |  | — |  |  |  | 231 |  |  |  | — |  |  |  | — |  |  |  | 3,098 |  |  |  | 922 |  |  |  | — |  |  |  | — |  |  |  | 4,251 |
Doubtful |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total Commercial Real Estate - Owner Occupied |  | $ | 36,556 |  |  | $ | 82,950 |  |  | $ | 68,643 |  |  | $ | 56,586 |  |  | $ | 32,882 |  |  | $ | 93,860 |  |  | $ | 5,844 |  |  | $ | — |  |  | $ | 377,321 |
Commercial Real Estate - Owner Occupied: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial Real Estate - Non-Owner Occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 183,439 |  |  | $ | 269,334 |  |  | $ | 198,832 |  |  | $ | 136,031 |  |  | $ | 120,659 |  |  | $ | 206,267 |  |  | $ | 23,016 |  |  | $ | — |  |  | $ | 1,137,578 |
Special Mention |  |  | — |  |  |  | 5,774 |  |  |  | 6,171 |  |  |  | — |  |  |  | - |  |  |  | 8,688 |  |  |  | 277 |  |  |  | — |  |  |  | 20,910 |
Substandard |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 122 |  |  |  | 3,284 |  |  |  | — |  |  |  | — |  |  |  | 3,406 |
Doubtful |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total Commercial Real Estate - Non-Owner Occupied |  | $ | 183,439 |  |  | $ | 275,108 |  |  | $ | 205,003 |  |  | $ | 136,031 |  |  | $ | 120,781 |  |  | $ | 218,239 |  |  | $ | 23,293 |  |  | $ | — |  |  | $ | 1,161,894 |
Commercial Real Estate - Non-Owner Occupied: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Residential Real Estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 90,770 |  |  | $ | 124,695 |  |  | $ | 97,661 |  |  | $ | 71,379 |  |  | $ | 33,534 |  |  | $ | 78,894 |  |  | $ | 157,083 |  |  | $ | — |  |  | $ | 654,016 |
Special Mention |  |  | — |  |  |  | — |  |  |  | 221 |  |  |  | 97 |  |  |  | — |  |  |  | 245 |  |  |  | — |  |  |  | — |  |  |  | 563 |
Substandard |  |  | 186 |  |  |  | 342 |  |  |  | 684 |  |  |  | 82 |  |  |  | 582 |  |  |  | 2,063 |  |  |  | 1,323 |  |  |  | — |  |  |  | 5,262 |
Doubtful |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total Residential Real Estate |  | $ | 90,956 |  |  | $ | 125,037 |  |  | $ | 98,566 |  |  | $ | 71,558 |  |  | $ | 34,116 |  |  | $ | 81,202 |  |  | $ | 158,406 |  |  | $ | — |  |  | $ | 659,841 |
Residential Real Estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  | $ | — |  |  | $ | 6 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 11 |  |  | $ | — |  |  | $ | — |  |  | $ | 17 |
NOTE 5 - ALLOWANCE FOR CREDIT LOSSES (Continued)
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Revolving |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Loans |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Revolving |  |  | Converted |  |  |  |
December 31, 2023 |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | 2020 |  |  | 2019 |  |  | Prior |  |  | Loans |  |  | to Term |  |  | Total |
Real Estate Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 108,606 |  |  | $ | 105,222 |  |  | $ | 20,960 |  |  | $ | 6,739 |  |  | $ | 2,699 |  |  | $ | 2,635 |  |  | $ | 9,335 |  |  | $ | — |  |  | $ | 256,196 |
Special Mention |  |  | — |  |  |  | 1,226 |  |  |  | 926 |  |  |  | 2,019 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 4,171 |
Substandard |  |  | — |  |  |  | — |  |  |  | 42 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 42 |
Doubtful |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total Real Estate Construction |  | $ | 108,606 |  |  | $ | 106,448 |  |  | $ | 21,928 |  |  | $ | 8,758 |  |  | $ | 2,699 |  |  | $ | 2,635 |  |  | $ | 9,335 |  |  | $ | — |  |  | $ | 260,409 |
Real Estate Construction: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Farm Real Estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 2,207 |  |  | $ | 967 |  |  | $ | 2,256 |  |  | $ | 4,462 |  |  | $ | 789 |  |  | $ | 12,528 |  |  | $ | 1,292 |  |  | $ | — |  |  | $ | 24,501 |
Special Mention |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 20 |  |  |  | — |  |  |  | — |  |  |  | 20 |
Substandard |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 250 |  |  |  | — |  |  |  | — |  |  |  | 250 |
Doubtful |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total Farm Real Estate |  | $ | 2,207 |  |  | $ | 967 |  |  | $ | 2,256 |  |  | $ | 4,462 |  |  | $ | 789 |  |  | $ | 12,798 |  |  | $ | 1,292 |  |  | $ | — |  |  | $ | 24,771 |
Farm Real Estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Lease Financing Receivables |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 28,177 |  |  | $ | 13,924 |  |  | $ | 6,620 |  |  | $ | 3,678 |  |  | $ | 1,725 |  |  | $ | 1 |  |  | $ | — |  |  | $ | — |  |  | $ | 54,125 |
Special Mention |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Substandard |  |  | — |  |  |  | 8 |  |  |  | 38 |  |  |  | 61 |  |  |  | 231 |  |  |  | 17 |  |  |  | — |  |  |  | — |  |  |  | 355 |
Doubtful |  |  | — |  |  |  | 139 |  |  |  | — |  |  |  | 15 |  |  |  | 8 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 162 |
Total Lease Financing Receivables |  | $ | 28,177 |  |  | $ | 14,071 |  |  | $ | 6,658 |  |  | $ | 3,754 |  |  | $ | 1,964 |  |  | $ | 18 |  |  | $ | — |  |  | $ | — |  |  | $ | 54,642 |
Lease Financing Receivables: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Consumer and Other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 6,510 |  |  | $ | 4,135 |  |  | $ | 3,615 |  |  | $ | 1,578 |  |  | $ | 509 |  |  | $ | 248 |  |  | $ | 1,424 |  |  | $ | — |  |  | $ | 18,019 |
Special Mention |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Substandard |  |  | — |  |  |  | 2 |  |  |  | 14 |  |  |  | 15 |  |  |  | — |  |  |  | 6 |  |  |  | — |  |  |  | — |  |  |  | 37 |
Doubtful |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total Consumer and Other |  | $ | 6,510 |  |  | $ | 4,137 |  |  | $ | 3,629 |  |  | $ | 1,593 |  |  | $ | 509 |  |  | $ | 254 |  |  | $ | 1,424 |  |  | $ | — |  |  | $ | 18,056 |
Consumer and Other: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period charge-offs |  | $ | 6 |  |  | $ | 40 |  |  | $ | 40 |  |  | $ | 7 |  |  | $ | 13 |  |  | $ | 3 |  |  | $ | 5 |  |  | $ | — |  |  | $ | 114 |
Total Loans |  | $ | 513,980 |  |  | $ | 673,054 |  |  | $ | 459,295 |  |  | $ | 302,185 |  |  | $ | 203,527 |  |  | $ | 423,273 |  |  | $ | 286,413 |  |  | $ | — |  |  | $ | 2,861,727 |
Total Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period charge-offs |  | $ | 7 |  |  | $ | 719 |  |  | $ | 572 |  |  | $ | 7 |  |  | $ | 13 |  |  | $ | 109 |  |  | $ | 5 |  |  | $ | — |  |  | $ | 1,431 |
NOTE 5 - ALLOWANCE FOR CREDIT LOSSES (Continued)
December 31, 2022 |  | Pass |  |  | Special Mention |  |  | Substandard |  |  | Doubtful |  |  | Ending Balance |
Commercial & Agriculture |  | $ | 273,291 |  |  | $ | 2,558 |  |  | $ | 2,746 |  |  | $ | — |  |  | $ | 278,595 |
Commercial Real Estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner Occupied |  |  | 367,652 |  |  |  | 734 |  |  |  | 2,761 |  |  |  | — |  |  |  | 371,147 |
Non-Owner Occupied |  |  | 1,003,942 |  |  |  | 10,947 |  |  |  | 3,847 |  |  |  | — |  |  |  | 1,018,736 |
Residential Real Estate |  |  | 114,021 |  |  |  | 183 |  |  |  | 5,787 |  |  |  | — |  |  |  | 119,991 |
Real Estate Construction |  |  | 198,734 |  |  |  | — |  |  |  | 221 |  |  |  | — |  |  |  | 198,955 |
Farm Real Estate |  |  | 24,283 |  |  |  | 379 |  |  |  | 46 |  |  |  | — |  |  |  | 24,708 |
Lease Financing Receivables |  |  | 36,223 |  |  |  | — |  |  |  | 401 |  |  |  | 173 |  |  |  | 36,797 |
Consumer and Other |  |  | 839 |  |  |  | — |  |  |  | 163 |  |  |  | — |  |  |  | 1,002 |
Total |  | $ | 2,018,985 |  |  | $ | 14,801 |  |  | $ | 15,972 |  |  | $ | 173 |  |  | $ | 2,049,931 |
Due to the business disruptions and shut-downs due to the Covid-19 pandemic, in 2020, management offered payment deferments to a number of customers that had previously been current in all respects. Civista instituted an enhanced portfolio management process which included meeting with customers, requesting additional financial information and evaluating cashflow and adjusting risk ratings as conditions warrant. During this process we systematically downgraded a significant number of loans to recognize the increased risk attributed to the pandemic. Additionally, Civista offered longer term deferrals under Section 4013 of the Cares Act, that were also downgraded as appropriate. Based on improved financial performance, Civista upgraded 48% of criticized loans during 2022. The lodging industry was hit the hardest and recovery is taking longer for that segment. Civista believes it has prudently identified risk, assigned appropriate risk ratings, and has a comprehensive portfolio management process to identify and quantify risk. The following table presents performing and nonperforming loans based solely on payment activity for the year ended December 31, 2022 that had not been assigned an internal risk grade.
December 31, 2022 |  | Residential Real Estate |  |  | Real Estate Construction |  |  | Consumer and Other |  |  | Total |
Performing |  | $ | 432,790 |  |  | $ | 44,172 |  |  | $ | 19,773 |  |  | $ | 496,735 |
Nonperforming |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  | $ | 432,790 |  |  | $ | 44,172 |  |  | $ | 19,773 |  |  | $ | 496,735 |
NOTE 5 - ALLOWANCE FOR CREDIT LOSSES (Continued) The following tables include an aging analysis of the recorded investment of past due loans outstanding as of December 31, 2023 and 2022.
December 31, 2023 |  | 30-59 Days Past Due |  |  | 60-89 Days Past Due |  |  | 90 Days or Greater |  |  | Total Past Due |  |  | Current |  |  | Total Loans |  |  | Past Due 90 Days and Accruing |
Commercial & Agriculture |  | $ | 1,228 |  |  | $ | 471 |  |  | $ | 1,999 |  |  | $ | 3,698 |  |  | $ | 301,095 |  |  | $ | 304,793 |  |  | $ | 73 |
Commercial Real Estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner Occupied |  |  | 4 |  |  |  | — |  |  |  | 123 |  |  |  | 127 |  |  |  | 377,194 |  |  |  | 377,321 |  |  |  | — |
Non-Owner Occupied |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 0 |  |  |  | 1,161,894 |  |  |  | 1,161,894 |  |  |  | — |
Residential Real Estate |  |  | 4,581 |  |  |  | 1,180 |  |  |  | 1,642 |  |  |  | 7,403 |  |  |  | 652,438 |  |  |  | 659,841 |  |  |  | — |
Real Estate Construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 260,409 |  |  |  | 260,409 |  |  |  | — |
Farm Real Estate |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 24,771 |  |  |  | 24,771 |  |  |  | — |
Lease Financing Receivables |  |  | 950 |  |  |  | 410 |  |  |  | 373 |  |  |  | 1,733 |  |  |  | 52,909 |  |  |  | 54,642 |  |  |  | — |
Consumer and Other |  |  | 172 |  |  |  | 23 |  |  |  | 2 |  |  |  | 197 |  |  |  | 17,859 |  |  |  | 18,056 |  |  |  | — |
Total |  | $ | 6,935 |  |  | $ | 2,084 |  |  | $ | 4,139 |  |  | $ | 13,158 |  |  | $ | 2,848,569 |  |  | $ | 2,861,727 |  |  | $ | 73 |
December 31, 2022 |  | 30-59 Days Past Due |  |  | 60-89 Days Past Due |  |  | 90 Days or Greater |  |  | Total Past Due |  |  | Current |  |  | Purchased Credit- Impaired Loans |  |  | Total Loans |  |  | Past Due 90 Days and Accruing |
Commercial & Agriculture |  | $ | 247 |  |  | $ | 78 |  |  | $ | 534 |  |  | $ | 859 |  |  | $ | 276,873 |  |  | $ | 863 |  |  | $ | 278,595 |  |  | $ | — |
Commercial Real Estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner Occupied |  |  | 21 |  |  |  | 13 |  |  |  | 76 |  |  |  | 110 |  |  |  | 369,049 |  |  |  | 1,988 |  |  |  | 371,147 |  |  |  | — |
Non-Owner Occupied |  |  | — |  |  |  | — |  |  |  | 1,164 |  |  |  | 1,164 |  |  |  | 1,017,453 |  |  |  | 119 |  |  |  | 1,018,736 |  |  |  | — |
Residential Real Estate |  |  | 3,133 |  |  |  | 857 |  |  |  | 1,107 |  |  |  | 5,097 |  |  |  | 546,270 |  |  |  | 1,414 |  |  |  | 552,781 |  |  |  | — |
Real Estate Construction |  |  | — |  |  |  | — |  |  |  | 219 |  |  |  | 219 |  |  |  | 242,908 |  |  |  | — |  |  |  | 243,127 |  |  |  | — |
Farm Real Estate |  |  | 7 |  |  |  | — |  |  |  | — |  |  |  | 7 |  |  |  | 24,701 |  |  |  | — |  |  |  | 24,708 |  |  |  | — |
Lease Financing Receivables |  |  | 1,040 |  |  |  | — |  |  |  | 341 |  |  |  | 1,381 |  |  |  | 35,416 |  |  |  | — |  |  |  | 36,797 |  |  |  |
Consumer and Other |  |  | 293 |  |  |  | 49 |  |  |  | 74 |  |  |  | 416 |  |  |  | 20,358 |  |  |  | 1 |  |  |  | 20,775 |  |  |  | — |
Total |  | $ | 4,741 |  |  | $ | 997 |  |  | $ | 3,515 |  |  | $ | 9,253 |  |  | $ | 2,533,028 |  |  | $ | 4,385 |  |  | $ | 2,546,666 |  |  | $ | — |
The following table presents loans on nonaccrual status as of December 31, 2023.
December 31, 2023 |  | Nonaccrual loans with a related ACL |  |  | Nonaccrual loans without a related ACL |  |  | Total Nonaccrual loans |  |  | Interest Income Recognized |
Commercial & Agriculture |  | $ | 914 |  |  | $ | 4,891 |  |  | $ | 5,805 |  |  | $ | 9 |
Commercial Real Estate: |  |  |  |  |  |  |  |  |  |  |  |
Owner Occupied |  |  | 269 |  |  |  | 3 |  |  |  | 272 |  |  |  | 7 |
Non-Owner Occupied |  |  | — |  |  |  | 1,167 |  |  |  | 1,167 |  |  |  | — |
Residential Real Estate |  |  | — |  |  |  | 4,633 |  |  |  | 4,633 |  |  |  | 26 |
Real Estate Construction |  |  | — |  |  |  | 41 |  |  |  | 41 |  |  |  | — |
Farm Real Estate |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Lease Financing Receivables |  |  | 15 |  |  |  | 492 |  |  |  | 507 |  |  |  | — |
Consumer and Other |  |  | — |  |  |  | 42 |  |  |  | 42 |  |  |  | 4 |
Total |  | $ | 1,198 |  |  | $ | 11,269 |  |  | $ | 12,467 |  |  | $ | 46 |
NOTE 5 - ALLOWANCE FOR CREDIT LOSSES (Continued) The following table presents loans on nonaccrual status as of December 31, 2022, excluding PCI loans.
|  | 2022 |
Commercial & Agriculture |  | $ | 774 |
Commercial Real Estate: |  |  |
Owner Occupied |  |  | 386 |
Non-Owner Occupied |  |  | 1,109 |
Residential Real Estate |  |  | 3,926 |
Real Estate Construction |  |  | 221 |
Farm Real Estate |  |  | — |
Lease Financing Receivables |  |  | — |
Consumer and Other |  |  | 91 |
Total |  | $ | 6,507 |
Nonaccrual Loans: Loans are considered for nonaccrual status upon reaching 90 days delinquency, unless the loan is well secured and in the process of collection, although Civista may be receiving partial payments of interest and partial repayments of principal on such loans. When a loan is placed on nonaccrual status, previously accrued but unpaid interest is deducted from interest income. A loan may be returned to accruing status only if one of three conditions are met: the loan is well-secured and none of the principal and interest has been past due for a minimum of 90 days; the loan is a TDR and the borrower has made a minimum of six months payments; or the principal and interest payments are reasonably assured and a sustained period of performance has occurred, generally six months. The gross interest income that would have been recorded on nonaccrual loans in 2023, 2022 and 2021 if the loans had been current in accordance with their original terms and had been outstanding throughout the period or since origination, if held for part of the period, was $446, $384 and $307, respectively. The amount of interest income on such loans recognized on a cash basi s was $343 in 2023, $451 in 2022 and $716 in 2021. TDRs and Loan Modifications: Prior to the adoption of ASU 2022-02, a modification of a loan constitutes a TDR when Civista for economic or legal reasons related to a borrower’s financial difficulties grants a concession to the borrower that it would not otherwise consider. Civista offers various types of concessions when modifying a loan, however, forgiveness of principal is rarely granted. Commercial Real Estate loans modified in a TDR often involve reducing the interest rate lower than the current market rate for new debt with similar risk. Real Estate loans modified in a TDR were primarily comprised of interest rate reductions where monthly payments were lowered to accommodate the borrowers’ financial needs. Loans modified in a TDR are typically already on non-accrual status and partial charge-offs have in some cases already been taken against the outstanding loan balance. As a result, loans modified in a TDR may have the financial effect of increasing the specific allowance associated with the loan. An allowance for impaired loans that have been modified in a TDR are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or the estimated fair value of the collateral, less any selling costs, if the loan is collateral dependent. Management exercises significant judgment in developing these estimate s. TDRs accounted for $7 of the allowance for credit losses as of December 31, 2022 and $18 as of December 31, 2021. There were no loans modified in a TDR during the twelve month period ended December 31, 2022 and 2021. Recidivism, or the borrower defaulting on its obligation pursuant to a modified loan, results in the loan once again becoming a non-accrual loan. Recidivism occurs at a notably higher rate than do defaults on new originations loans, so modified loans present a higher risk of loss than do new origination loans. During the periods ended December 31, 2022 and 2021, there were no defaults on loans that were modified and considered TDRs during the previous twelve months. NOTE 5 - ALLOWANCE FOR CREDIT LOSSES (Continued) In accordance with the adoption of ASU 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, accounting guidance for TDRs for creditors has been eliminated. New guidance with respect to recognition, measurement, and disclosures of loans for borrowers experiencing financial difficulties supersedes guidance on TDRs. Under ASU 2022-02, the Company is required to evaluate whether a loan modification represents a new loan or a continuation of an existing loan. The amendment enhanced existing disclosure requirements and introduced new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty under criteria of principal forgiveness, interest rate reduction, other-than-insignificant payment delay, or term extension. There were no loans modified to borrowers experiencing financial difficulty during the period ended December 31, 2023. Individually Evaluated Loans: Larger (greater than $350) Commercial & Agricultural and Commercial Real Estate loan relationships, and Residential Real Estate and Consumer loans that are part of a larger relationship are tested for impairment on a quarterly basis. These loans are analyzed to determine if it is probable that all amounts will not be collected according to the contractual terms of the loan agreement. If management determines that the value of the impaired loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through an allowance estimate or a charge-off to the allowance. The Company’s policy for recognizing interest income on impaired loans does not differ from its overall policy for interest recognition. The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related allowance for credit losses allocated to these loans.
December 31, 2023 |  | Real Estate |  |  | Other |  |  | Allowance for Credit Losses |
Commercial & Agriculture |  | $ | — |  |  | $ | 4,674 |  |  | $ | 945 |
Commercial Real Estate: |  |  |  |  |  |  |  |  |
Owner Occupied |  |  | 308 |  |  |  | — |  |  |  | 37 |
Non-Owner Occupied |  |  | 1,167 |  |  |  | — |  |  |  | 268 |
Residential Real Estate |  |  | 149 |  |  |  | — |  |  |  | — |
Real Estate Construction |  |  | — |  |  |  | — |  |  |  | — |
Farm Real Estate |  |  | — |  |  |  | — |  |  |  | — |
Lease Financing Receivables |  |  | — |  |  |  | 61 |  |  |  | 15 |
Consumer and Other |  |  | — |  |  |  | — |  |  |  | — |
Total |  | $ | 1,624 |  |  | $ | 4,735 |  |  | $ | 1,265 |
Collateral-dependent loans consist primarily of Residential Real Estate, Commercial Real Estate and Commercial and Agricultural loans. These loans are individually evaluated when foreclosure is probable or when the repayment of the loan is expected to be provided substantially through the operation or sale of the underlying collateral. In the case of Commercial and Agricultural loans secured by equipment, the fair value of the collateral is estimated by third-party valuation experts. Loan balances are charged down to the underlying collateral value when they are deemed uncollectible. Note that the Company did not elect to use the collateral maintenance agreement practical expedient available under CECL. NOTE 5 - ALLOWANCE FOR CREDIT LOSSES (Continued) The following table includes the recorded investment and unpaid principal balances for impaired financing receivables, excluding PCI loans, with the associated allowance amount, if applicable, as of December 31, 2022.
|  | December 31, 2022 |
|  | Recorded Investment |  |  | Unpaid Principal Balance |  |  | Related Allowance |
With no related allowance recorded: |  |  |  |  |  |  |  |  |
Commercial Real Estate: |  |  |  |  |  |  |  |  |
Owner Occupied |  | $ | 82 |  |  | $ | 82 |  |  |  |
Non-Owner Occupied |  |  | — |  |  |  | — |  |  |  |
Residential Real Estate |  |  | 385 |  |  |  | 410 |  |  |  |
Farm Real Estate |  |  | — |  |  |  | — |  |  |  |
Total |  |  | 467 |  |  |  | 492 |  |  |  |
With an allowance recorded: |  |  |  |  |  |  |  |  |
Commercial Real Estate: |  |  |  |  |  |  |  |  |
Owner Occupied |  |  | 150 |  |  |  | 150 |  |  | $ | 6 |
Residential Real Estate |  |  | 7 |  |  |  | 11 |  |  |  | 1 |
Total |  |  | 157 |  |  |  | 161 |  |  |  | 7 |
Total: |  |  |  |  |  |  |  |  |
Commercial & Agriculture |  |  | — |  |  |  | — |  |  |  | — |
Commercial Real Estate: |  |  |  |  |  |  |  |  |
Owner Occupied |  |  | 232 |  |  |  | 232 |  |  |  | 6 |
Non-Owner Occupied |  |  | — |  |  |  | — |  |  |  | — |
Residential Real Estate |  |  | 392 |  |  |  | 421 |  |  |  | 1 |
Farm Real Estate |  |  | — |  |  |  | — |  |  |  | — |
Total |  | $ | 624 |  |  | $ | 653 |  |  | $ | 7 |
The following tables include the average recorded investment and interest income recognized for impaired financing receivables as of, and for the years ended, December 31, 2022 and 2021.
For the year ended: |  | December 31, 2022 |  |  | December 31, 2021 |
|  | Average Recorded Investment |  |  | Interest Income Recognized |  |  | Average Recorded Investment |  |  | Interest Income Recognized |
Commercial & Agriculture |  | $ | 86 |  |  | $ | 3 |  |  | $ | 15 |  |  | $ | 0 |
Commercial Real Estate: |  |  |  |  |  |  |  |  |  |  |  |
Owner Occupied |  |  | 406 |  |  |  | 22 |  |  |  | 396 |  |  |  | 18 |
Non-Owner Occupied |  |  | 35 |  |  |  | 1 |  |  |  | 23 |  |  |  | 1 |
Residential Real Estate |  |  | 614 |  |  |  | 33 |  |  |  | 629 |  |  |  | 31 |
Farm Real Estate |  |  | 381 |  |  |  | 14 |  |  |  | 569 |  |  |  | 24 |
Total |  | $ | 1,522 |  |  | $ | 73 |  |  | $ | 1,632 |  |  | $ | 74 |
Foreclosed assets acquired in settlement of loans are carried at fair value less estimated costs to sell and are included in Other assets on the Consolidated Balance Sheet. As of December 31, 2023 and 2022, there were no foreclosed assets included in Other assets. As of December 31, 2023 and 2022, the Company had initiat ed formal foreclosure procedures on $1,018 and $399, respectively, of Residential Real Estate loans. NOTE 5 - ALLOWANCE FOR CREDIT LOSSES (Continued) Changes in the amortizable yield for PCI loans were as follows, since acquisition:
|  | At December 31, 2022 |  |  | At December 31, 2021 |
|  | (In Thousands) |  |  | (In Thousands) |
Balance at beginning of period |  | $ | 217 |  |  | $ | 225 |
Acquisition of PCI loans |  |  | — |  |  |  | — |
Accretion |  |  | (36 | ) |  |  | (77 | )
Transfers from non-accretable to accretable |  |  | 33 |  |  |  | 69 |
Balance at end of period |  | $ | 214 |  |  | $ | 217 |
The following table presents additional information regarding loans acquired and accounted for in accordance with ASC 310-30:
|  | At December 31, 2022 |  |  | At December 31, 2021 |
|  | Acquired Loans with Specific Evidence of Deterioration of Credit Quality (ASC 310-30) |  |  | Acquired Loans with Specific Evidence of Deterioration of Credit Quality (ASC 310-30) |
|  | (In Thousands) |
Outstanding balance |  | $ | 5,220 |  |  | $ | 512 |
Carrying amount |  |  | 4,386 |  |  |  | 290 |
There was no allowance for loan losses recorded for acquired loans with or without specific evidence of deterioration in credit quality as of December 31, 2023 and 2022, respectively. Allowance for Credit Losses on Off-Balance-Sheet Credit Exposures The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk from a contractual obligation to extend credit. The allowance for credit losses on off-balance-sheet credit exposures is adjusted within other non-interest expense on the Consolidated Statements of Operations. The estimated credit loss includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The estimate of expected credit loss is based on the historical loss rate for the loan class in which the loan commitments would be classified as if funded. The following table lists the allowance for credit losses on off-balance sheet credit exposures as of December 31, 2023:
| Twelve Months Ended |
| December 31, |
| 2023 |  | 2022 |
Beginning of Period | — |  |  | — |
CECL adoption adjustments |  | 3,386 |  |  | — |
Charge-offs |  | — |  |  | — |
Recoveries |  | — |  |  | — |
Provision |  | 515 |  |  | — |
End of Period | $ | 3,901 |  |  | — |

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