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LOANS AND ALLOWANCE FOR CREDIT LOSSES
6 Months Ended
Jun. 30, 2023
Credit Loss [Abstract]  
LOANS AND ALLOWANCE FOR CREDIT LOSSES LOANS AND ALLOWANCE FOR CREDIT LOSSES
The following is a summary of total loans by regulatory call report code with sub-segmentation based on underlying collateral for certain loan types:
(In thousands)June 30, 2023December 31, 2022
Construction$443,856 $319,452 
Commercial multifamily597,472 620,088 
Commercial real estate owner occupied696,771 640,489 
Commercial real estate non-owner occupied2,557,036 2,496,237 
Commercial and industrial1,438,062 1,445,236 
Residential real estate2,677,053 2,312,447 
Home equity225,434 227,450 
Consumer other246,718 273,910 
Total loans$8,882,402 $8,335,309 
Allowance for credit losses100,219 96,270 
Net loans$8,782,183 $8,239,039 

During the three and six months ended June 30, 2023 and June 30, 2022, there were no loans reclassified to held for sale. Held for sale loans are not contained in the balances within this note and are accounted for at the lower of carrying value or fair market value within loans held for sale on the Consolidated Balance Sheet.


Risk characteristics relevant to each portfolio segment are as follows:
Construction - Loans in this segment primarily include real estate development loans for which payment is derived from sale of the property or long term financing at completion. Credit risk is affected by cost overruns, time to sell at an adequate price, and market conditions.

Commercial real estate multifamily, owner occupied and non-owner - Loans in these segments are primarily owner-occupied or income-producing properties throughout New England and Northeastern New York. The underlying cash flows generated by the properties are adversely impacted by a downturn in the economy, which in turn, will have an effect on the credit quality in this segment. Management monitors the cash flows of these loans.

Commercial and industrial loans - Loans in this segment are made to businesses and are generally secured by assets of the business such as accounts receivable, inventory, marketable securities, other liquid collateral, equipment and other business assets. Repayment is expected from the cash flows of the business. Loans in this segment include asset based loans which generally have no scheduled repayment and which are closely monitored against formula based collateral advance ratios. A weakened economy, and resultant decreased consumer spending, will have an effect on the credit quality in this segment.

Residential real estate - All loans in this segment are collateralized by residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment.

Home equity and other consumer loans - Loans in this segment are primarily home equity lines of credit, automobile loans and other consumer loans. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment.
Allowance for Credit Losses for Loans
The Allowance for Credit Losses for Loans (“ACLL”) is comprised of the allowance for loan losses, and the allowance for unfunded commitments is accounted for as a separate liability in other liabilities on the balance sheet. The level of the ACLL represents management’s estimate of expected credit losses over the expected life of the loans at the balance sheet date. The Company uses a static pool migration analysis method, applying expected historical loss trend and observed economic metrics. The level of the ACLL is based on management’s ongoing review of all relevant information, from internal and external sources, relating to past and current events, utilizing a 7 quarter reasonable and supportable forecast period with a 1 year reversion period. The ACLL reserve is overlaid with qualitative factors based upon:
the existence and growth of concentrations of credit;
the volume and severity of past due financial assets, including nonaccrual assets;
the institutions lending and credit review as well as the experience and ability of relevant management and staff and;
the effect of other external factors such as regulatory, competition, regional market conditions, legal and technological environment and other events such as natural disasters;
the effect of other economic factors such as economic stimulus and customer forbearance programs.
The allowance for unfunded commitments is maintained at a level by the Company to be sufficient to absorb expected lifetime losses related to unfunded credit facilities (including unfunded loan commitments and letters of credit) and is included in other liabilities on the consolidated balance sheet.

The Company’s activity in the allowance for credit losses for loans for the three and six months ended June 30, 2023 and June 30, 2022 was as follows:
(In thousands)Balance at Beginning of PeriodAdoption of ASU No. 2022-02Charge-offsRecoveriesProvision for Credit LossesBalance at End of Period
Three months ended June 30, 2023
Construction$1,536 $— $(1)$— $18 $1,553 
Commercial multifamily1,698 — — — 368 2,066 
Commercial real estate owner occupied10,278 — (394)596 (137)10,343 
Commercial real estate non-owner occupied33,408 — — 81 2,833 36,322 
Commercial and industrial20,164 — (4,595)815 2,357 18,741 
Residential real estate17,590 — (210)76 762 18,218 
Home equity2,320 — (7)132 127 2,572 
Consumer other10,997 — (2,478)213 1,672 10,404 
Total allowance for credit losses$97,991 $— $(7,685)$1,913 $8,000 $100,219 
(In thousands)Balance at Beginning of PeriodCharge-offsRecoveriesProvision for Credit LossesBalance at End of Period
Three months ended June 30, 2022
Construction$2,505 $— $— $(795)$1,710 
Commercial multifamily5,771 — — (1,150)4,621 
Commercial real estate owner occupied11,498 (298)97 (609)10,688 
Commercial real estate non-owner occupied25,814 — 46 305 26,165 
Commercial and industrial22,949 (752)584 133 22,914 
Residential real estate17,816 (216)199 (1,389)16,410 
Home equity3,303 — 112 (587)2,828 
9,819 (332)101 4,097 13,685 
Total allowance for credit losses$99,475 $(1,598)$1,139 $$99,021 
(In thousands)Balance at Beginning of PeriodAdoption of ASU No. 2022-02Charge-offsRecoveriesProvision for Credit LossesBalance at End of Period
Six months ended June 30, 2023
Construction$1,227 $— $(1)$— $327 $1,553 
Commercial multifamily1,810 — — 250 2,066 
Commercial real estate owner occupied10,739 24 (464)641 (597)10,343 
Commercial real estate non-owner occupied30,724 — — 175 5,423 36,322 
Commercial and industrial18,743 (23)(10,627)1,119 9,529 18,741 
Residential real estate18,666 (240)463 (673)18,218 
Home equity2,173 — (18)159 258 2,572 
Consumer other12,188 (404)(4,271)389 2,502 10,404 
Total allowance for credit losses$96,270 $(401)$(15,621)$2,952 $17,019 $100,219 
(In thousands)Balance at Beginning of PeriodCharge-offsRecoveriesProvision for Credit LossesBalance at End of Period
Six months ended June 30, 2022
Construction$3,206 $— $— $(1,496)$1,710 
Commercial multifamily6,120 — — (1,499)4,621 
Commercial real estate owner occupied12,752 (428)306 (1,942)10,688 
Commercial real estate non-owner occupied32,106 (4,884)1,312 (2,369)26,165 
Commercial and industrial22,584 (1,405)1,872 (137)22,914 
Residential real estate22,406 (380)587 (6,203)16,410 
Home equity4,006 — 246 (1,424)2,828 
Consumer other2,914 (548)238 11,081 13,685 
Total allowance for credit losses$106,094 $(7,645)$4,561 $(3,989)$99,021 

The Company’s allowance for credit losses on unfunded commitments is recognized as a liability (other liabilities on the consolidated balance sheet), with adjustments to the reserve recognized in other noninterest expense in the consolidated statement of income. The Company’s activity in the allowance for credit losses on unfunded commitments for the three and six months ended June 30, 2023 and 2022 was as follows:

Three Months Ended
June 30,
(In thousands)20232022
Balance at beginning of period$8,687 $7,043 
Expense for credit losses— — 
Balance at end of period$8,687 $7,043 
Six Months Ended June 30,
(In thousands)20232022
Balance at beginning of period$8,588 $7,043 
Expense for credit losses99 — 
Balance at end of period$8,687 $7,043 
Credit Quality Information
The Company monitors the credit quality of its portfolio by using internal risk ratings that are based on regulatory guidance. Loans that are given a Pass rating are not considered a problem credit. Loans that are classified as Special Mention loans are considered to have potential weaknesses and are evaluated closely by management. Substandard, including non-accruing loans, are loans for which a definitive weakness has been identified and which may make full collection of contractual cash flows questionable. Doubtful loans are those with identified weaknesses that make full collection of contractual cash flows, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

For commercial credits, the Company assigns an internal risk rating at origination and reviews the rating annual, semiannually, or quarterly depending on the risk rating. The rating is also reassessed at any point in time when management becomes aware of information that may affect the borrower’s ability to fulfill their obligations.

The Company risk rates its residential mortgages, including 1-4 family and residential construction loans, based on a three rating system: Pass, Special Mention, and Substandard. Loans that are current within 59 days are rated Pass. Residential mortgages that are 60-89 days delinquent are rated Special Mention. Loans delinquent for 90 days or greater are rated Substandard and generally placed on non-accrual status. 
The following table presents the Company’s loans by risk category:
Term Loans Amortized Cost Basis by Origination Year
(In thousands)20232022202120202019PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
As of June 30, 2023
Construction
Current period gross write-offs$— $— $— $— $— $$— $— $
Risk rating
Pass$39,770 $220,919 $136,426 $26,884 $2,961 $498 $— $— $427,458 
Special Mention— — — — — — — — — 
Substandard— — 16,398 — — — — — 16,398 
Total$39,770 $220,919 $152,824 $26,884 $2,961 $498 $— $— $443,856 
Commercial multifamily:
Current period gross write-offs$— $— $— $— $— $— $— $— $— 
Risk rating
Pass$9,125 $204,033 $52,630 $27,276 $96,568 $198,555 $974 $— $589,161 
Special Mention— — — — — — — — — 
Substandard— — 246 2,591 — 5,474 — — 8,311 
Total$9,125 $204,033 $52,876 $29,867 $96,568 $204,029 $974 $— $597,472 
Commercial real estate owner occupied:
Current period gross write-offs$— $— $— $380 $— $84 $— $— $464 
Risk rating
Pass$51,966 $128,185 $131,822 $50,248 $98,040 $223,794 $1,538 $— $685,593 
Special Mention— 11 — 387 4,412 200 — — 5,010 
Substandard— — 82 107 369 5,610 — — 6,168 
Total$51,966 $128,196 $131,904 $50,742 $102,821 $229,604 $1,538 $— $696,771 
Commercial real estate non-owner occupied:
Current period gross write-offs$— $— $— $— $— $— $— $— $— 
Risk rating
Pass$208,347 $630,930 $391,646 $172,266 $248,566 $792,740 $17,388 $— $2,461,883 
Special Mention— — — — 47,261 9,966 — — 57,227 
Substandard— — — 6,994 5,944 24,988 — — 37,926 
Total$208,347 $630,930 $391,646 $179,260 $301,771 $827,694 $17,388 $— $2,557,036 
Commercial and industrial:
Current period gross write-offs$— $— $395 $1,656 $733 $5,531 $2,312 $— $10,627 
Risk rating
Pass$95,442 $240,907 $132,980 $43,719 $48,622 $178,417 $619,184 $— $1,359,271 
Special Mention175 3,369 1,830 2,257 1,986 1,854 21,159 — 32,630 
Substandard487 1,002 9,503 3,157 6,285 13,414 9,272 — 43,120 
Doubtful— — — — — 47 2,994 — 3,041 
Total$96,104 $245,278 $144,313 $49,133 $56,893 $193,732 $652,609 $— $1,438,062 
Term Loans Amortized Cost Basis by Origination Year
(In thousands)20232022202120202019PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
Residential real estate
Current period gross write-offs$— $50 $— $— $174 $16 $— $— $240 
Risk rating
Pass$419,626 $997,566 $271,542 $92,781 $69,856 $810,003 $201 $— $2,661,575 
Special Mention— — 1,378 — 237 910 — — 2,525 
Substandard— 134 581 432 1,194 10,612 — — 12,953 
Total$419,626 $997,700 $273,501 $93,213 $71,287 $821,525 $201 $— $2,677,053 
Term Loans Amortized Cost Basis by Origination Year
(In thousands)20222021202020192018PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
As of December 31, 2022
Construction
Risk rating
Pass$153,393 $133,708 $25,634 $3,432 $1,361 $1,924 $— $— $319,452 
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Total$153,393 $133,708 $25,634 $3,432 $1,361 $1,924 $— $— $319,452 
Commercial multifamily:
Risk rating
Pass$205,124 $61,032 $27,583 $100,696 $67,675 $149,633 $205 $— $611,948 
Special Mention— — 2,628 — — — — — 2,628 
Substandard— — — — 5,512 — — — 5,512 
Total$205,124 $61,032 $30,211 $100,696 $73,187 $149,633 $205 $— $620,088 
Commercial real estate owner occupied:
Risk rating
Pass$131,096 $127,270 $58,835 $82,576 $75,322 $154,056 $3,464 $— $632,619 
Special Mention— — 387 — — — — — 387 
Substandard1,003 122 31 282 1,056 4,989 — — 7,483 
Total$132,099 $127,392 $59,253 $82,858 $76,378 $159,045 $3,464 $— $640,489 
Commercial real estate non-owner occupied:
Risk rating
Pass$621,685 $410,359 $175,456 $333,783 $313,124 $530,322 $17,846 $— $2,402,575 
Special Mention— — — — 20,000 18,462 — — 38,462 
Substandard— — 7,237 13,623 15,610 18,730 — — 55,200 
Total$621,685 $410,359 $182,693 $347,406 $348,734 $567,514 $17,846 $— $2,496,237 
Commercial and industrial:
Risk rating
Pass$282,781 $147,070 $56,880 $67,975 $83,223 $99,367 $648,956 $— $1,386,252 
Special Mention— 5,811 1,290 1,332 11,502 912 2,632 — 23,479 
Substandard204 496 3,640 8,139 1,981 2,799 10,581 — 27,840 
Doubtful— — — — — 56 7,609 — 7,665 
Total$282,985 $153,377 $61,810 $77,446 $96,706 $103,134 $669,778 $— $1,445,236 
Residential real estate
Risk rating
Pass$997,981 $280,308 $96,548 $70,845 $138,894 $713,744 $165 $— $2,298,485 
Special Mention— 364 — 861 202 707 — — 2,134 
Substandard— 284 448 267 1,857 8,972 — — 11,828 
Total$997,981 $280,956 $96,996 $71,973 $140,953 $723,423 $165 $— $2,312,447 
For home equity and consumer other loan portfolio segments, Berkshire evaluates credit quality based on the aging status of the loan and by payment activity. The performing or nonperforming status is updated on an ongoing basis dependent upon improvement and deterioration in credit quality. The following table presents the amortized cost based on payment activity:
Term Loans Amortized Cost Basis by Origination Year
(In thousands)20232022202120202019PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
As of June 30, 2023
Home equity:
Current period gross write-offs$— $— $— $— $— $— $18 $— $18 
Payment performance
Performing$— $— $108 $446 $— $2,523 $220,260 $— $223,337 
Nonperforming— — — — — — 2,097 — 2,097 
Total$— $— $108 $446 $— $2,523 $222,357 $— $225,434 
Consumer other:
Current period gross write-offs$$3,622 $466 $$33 $142 $— $— $4,271 
Payment performance
Performing$26,460 $134,609 $23,959 $7,082 $9,591 $33,090 $10,208 $— $244,999 
Nonperforming583 139 35 148 805 — 1,719 
Total$26,467 $135,192 $24,098 $7,117 $9,739 $33,895 $10,210 $— $246,718 
Term Loans Amortized Cost Basis by Origination Year
(In thousands)20222021202020192018PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
As of December 31, 2022
Home equity:
Payment performance
Performing$— $114 $454 $— $— $17 $224,746 $— $225,331 
Nonperforming— — — — — — 2,119 — 2,119 
Total$— $114 $454 $— $— $17 $226,865 $— $227,450 
Consumer other:
Payment performance
Performing$161,157 $28,279 $8,312 $12,670 $27,608 $24,682 $9,070 $— $271,778 
Nonperforming588 137 44 280 477 567 39 — 2,132 
Total$161,745 $28,416 $8,356 $12,950 $28,085 $25,249 $9,109 $— $273,910 
The following is a summary of loans by past due status at June 30, 2023 and December 31, 2022:
(In thousands)30-59 Days Past Due60-89 Days Past Due90 Days or Greater Past DueTotal Past DueCurrentTotal Loans
June 30, 2023
Construction$— $— $— $— $443,856 $443,856 
Commercial multifamily— — — — 597,472 597,472 
Commercial real estate owner occupied959 650 2,207 3,816 692,955 696,771 
Commercial real estate non-owner occupied151 117 162 430 2,556,606 2,557,036 
Commercial and industrial1,316 679 17,156 19,151 1,418,911 1,438,062 
Residential real estate4,328 2,526 12,859 19,713 2,657,340 2,677,053 
Home equity547 327 2,097 2,971 222,463 225,434 
Consumer other1,918 1,629 1,719 5,266 241,452 246,718 
Total$9,219 $5,928 $36,200 $51,347 $8,831,055 $8,882,402 
(In thousands)30-59 Days Past Due60-89 Days Past Due90 Days or Greater Past DueTotal Past DueCurrentTotal Loans
December 31, 2022
Construction$— $— $— $— $319,452 $319,452 
Commercial multifamily— 214 — 214 619,874 620,088 
Commercial real estate owner occupied122 — 3,302 3,424 637,065 640,489 
Commercial real estate non-owner occupied143 — 191 334 2,495,903 2,496,237 
Commercial and industrial1,173 1,438 18,658 21,269 1,423,967 1,445,236 
Residential real estate3,694 2,134 11,724 17,552 2,294,895 2,312,447 
Home equity168 57 2,119 2,344 225,106 227,450 
Consumer other1,990 1,028 2,158 5,176 268,734 273,910 
Total$7,290 $4,871 $38,152 $50,313 $8,284,996 $8,335,309 
The following is a summary of loans on nonaccrual status and loans past due 90 days or more and still accruing as of June 30, 2023 and December 31, 2022:
(In thousands)Nonaccrual Amortized CostNonaccrual With No Related AllowancePast Due 90 Days or Greater and AccruingInterest Income Recognized on Nonaccrual
At or for the three months ended June 30, 2023
Construction$— $— $— $— 
Commercial multifamily— — — — 
Commercial real estate owner occupied1,399 421 808 — 
Commercial real estate non-owner occupied162 59 — — 
Commercial and industrial15,489 8,503 1,667 — 
Residential real estate8,971 5,668 3,888 — 
Home equity1,491 452 606 — 
Consumer other876 — 843 — 
Total$28,388 $15,103 $7,812 $— 
The commercial and industrial loans nonaccrual amortized cost as of June 30, 2023 included medallion loans with a fair value of $0.4 million and a contractual balance of $9.3 million.
(In thousands) Nonaccrual Amortized CostNonaccrual With No Related AllowancePast Due 90 Days or Greater and AccruingInterest Income Recognized on Nonaccrual
At or for the three months ended December 31, 2022
Construction$— $— $— $— 
Commercial multifamily— — — — 
Commercial real estate owner occupied2,202 1,411 1,100 — 
Commercial real estate non-owner occupied191 73 — — 
Commercial and industrial16,992 14,223 1,666 — 
Residential real estate8,901 5,307 2,823 — 
Home equity1,568 388 551 — 
Consumer other1,260 898 — 
Total$31,114 $21,404 $7,038 $— 
The commercial and industrial loans nonaccrual amortized cost as of December 31, 2022 included medallion loans with a fair value of $0.6 million and a contractual balance of $10.9 million.

The following table summarizes information about total loans rated Special Mention or lower at June 30, 2023 and December 31, 2022. The table below includes consumer loans that are Special Mention and Substandard accruing that are classified as performing based on payment activity.

(In thousands)June 30, 2023December 31, 2022
Non-Accrual$28,388 $31,114 
Substandard Accruing 103,327 88,665 
Total Classified131,715 119,779 
Special Mention 99,318 68,127 
Total Criticized$231,033 $187,906 
A financial asset is considered collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. Expected credit losses for collateral-dependent loans are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. Significant quarter over quarter changes are reflective of changes in nonaccrual status and not necessarily associated with credit quality indicators like appraisal value. The following table presents the amortized cost basis of individually analyzed collateral-dependent loans by loan portfolio segment:
Type of Collateral
(In thousands)Real EstateInvestment Securities/CashOther
June 30, 2023
Construction$— $— $— 
Commercial multifamily— — 
Commercial real estate owner occupied798 — — 
Commercial real estate non-owner occupied666 — — 
Commercial and industrial5,022 — 7,320 
Residential real estate7,514 — — 
Home equity471 — — 
Consumer other— — — 
Total loans$14,471 $— $7,320 
December 31, 2022
Construction$— $— $— 
Commercial multifamily— — — 
Commercial real estate owner occupied2,793 — — 
Commercial real estate non-owner occupied384 — — 
Commercial and industrial288 — 16,931 
Residential real estate3,910 — — 
Home equity501 — — 
Consumer other— — 
Total loans$7,878 $— $16,931 
Modified Loans
Occasionally, the Company modifies loans to borrowers in financial distress by providing principal forgiveness, term extension, an other-than-insignificant payment delay or interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses.

In some cases, the Company provides multiple types of concessions on one loan. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted. For the loans included in the "combination" columns below, multiple types of modifications have been made on the same loan within the current reporting period. The combination is at least two of the following: a term extension and principal forgiveness, an other-than-insignificant payment delay and/or an interest rate reduction.

The following table presents the amortized cost basis of loans at June 30, 2023 that were both experiencing financial difficulty and modified during the three and six months ended June 30, 2023, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below:

(In thousands)Principal ForgivenessPayment DelayTerm ExtensionInterest Rate ReductionCombination Term Extension and Principal ForgivenessCombination Term Extension and Interest Rate ReductionTotal Class of Financing Receivable
Three months ended June 30, 2023
Construction$— $— $— $— $— $— — %
Commercial multifamily— — — — — — — 
Commercial real estate owner occupied— — — — — — — 
Commercial real estate non-owner occupied— — 11,733 — — — 0.46 
Commercial and industrial— — 1,291 — — — 0.09 
Residential real estate— — — — — — — 
Home equity— — — — — — — 
Consumer other— — — — — — — 
Total$— $— $13,024 $— $— $— — %
(In thousands)Principal ForgivenessPayment DelayTerm ExtensionInterest Rate ReductionCombination Term Extension and Principal ForgivenessCombination Term Extension and Interest Rate ReductionTotal Class of Financing Receivable
Six months ended June 30, 2023
Construction$— $— $— $— $— $— — %
Commercial multifamily— — — — — — — 
Commercial real estate owner occupied— 387 — — — — 0.06 
Commercial real estate non-owner occupied— — 11,733 — — — 0.46 
Commercial and industrial— — 1,291 — 10 — 0.09 
Residential real estate— — — — — — — 
Home equity— — — — — — — 
Consumer other— — — — — — — 
Total$— $387 $13,024 $— $10 $— — %
The Company has not committed to lend additional amounts to the borrowers included in the previous table.

The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of such loans that have been modified in the last twelve months.
(In thousands)30 - 59 Days Past Due60 - 89 Days Past DueGreater Than 89 Days Past DueTotal Past Due
Three months ended June 30, 2023
Construction$— $— $— $— 
Commercial multifamily— — — — 
Commercial real estate owner occupied— — — — 
Commercial real estate non-owner occupied— — — — 
Commercial and industrial— — — — 
Residential real estate— — — — 
Home equity— — — — 
Consumer other— — — — 
Total$— $— $— $— 
(In thousands)30 - 59 Days Past Due60 - 89 Days Past DueGreater Than 89 Days Past DueTotal Past Due
Six months ended June 30, 2023
Construction$— $— $— $— 
Commercial multifamily— — — — 
Commercial real estate owner occupied— — — — 
Commercial real estate non-owner occupied— — — — 
Commercial and industrial— — — — 
Residential real estate— — — — 
Home equity— — — — 
Consumer other— — — — 
Total$— $— $— $— 
The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the three and six months ended June 30, 2023:
(In thousands)Principal ForgivenessWeighted Average Interest Rate ReductionWeighted Average Term Extension (months)
Three months ended June 30, 2023
Construction$— — %0
Commercial multifamily— — 0
Commercial real estate owner occupied— — 0
Commercial real estate non-owner occupied— — 12
Commercial and industrial— — 119
Residential real estate— — 0
Home equity— — 0
Consumer other— — 0
(In thousands)Principal ForgivenessWeighted Average Interest Rate ReductionWeighted Average Term Extension (months)
Six months ended June 30, 2023
Construction$— — %0
Commercial multifamily— — 0
Commercial real estate owner occupied— — 120
Commercial real estate non-owner occupied— — 0
Commercial and industrial— 1.25 118
Residential real estate— — 0
Home equity— — 0
Consumer other— — 0
There were no loans that had a payment default during the three and six months ended June 30, 2023 that were modified in the twelve months prior to that default to borrowers experiencing financial difficulty.
Upon the Company's determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount.