Loans and Allowance for Credit Losses

6 Months Ended

Jun. 30, 2024

Loans Held for Sale

Loans held for sale are comprised entirely of 1-4 family residential mortgage loans as of June 30, 2024 and December 31, 2023. The Company designates loans held for sale as either carried at fair value or the lower of cost or fair value at loan level at origination.

Loans Held for Investment

The following table presents amortized cost and unpaid principal balance of loans, categorized by the segments used in the Company's Current Expected Credit Losses (“CECL”) methodology to assess credit risk, for the periods indicated:


	June 30, 2024			December 31, 2023
(In Thousands)	Amortized Cost	Unpaid Principal	Difference	Amortized Cost	Unpaid Principal	Difference
Commercial & industrial loans	$415,931	$417,858	($1,927)	$411,387	$413,293	($1,906)
Commercial real estate:
Owner occupied properties	382,050	383,832	(1,782)	366,741	368,357	(1,616)
Non-owner occupied and multifamily properties	547,488	551,130	(3,642)	515,528	519,115	(3,587)
Residential real estate:
1-4 family residential properties secured by first liens	222,488	222,026	462	203,738	203,534	204
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	41,500	41,258	242	33,996	33,783	213
1-4 family residential construction loans	29,281	29,510	(229)	30,976	31,239	(263)
Other construction, land development and raw land loans	152,767	154,009	(1,242)	148,373	149,788	(1,415)
Obligations of states and political subdivisions in the US	29,671	29,673	(2)	30,407	30,409	(2)
Agricultural production, including commercial fishing	45,079	45,320	(241)	41,007	41,237	(230)
Consumer loans	6,743	6,679	64	6,241	6,180	61
Other loans	2,909	2,930	(21)	1,103	1,118	(15)
Total	1,875,907	1,884,225	(8,318)	1,789,497	1,798,053	(8,556)
Allowance for credit losses	(17,694)			(17,270)
	$1,858,213	$1,884,225	($8,318)	$1,772,227	$1,798,053	($8,556)

The difference between the amortized cost and unpaid principal balance is net deferred origination fees totaling $8.3 million at June 30, 2024 and $8.6 million at December 31, 2023.

Accrued interest on loans, which is excluded from the amortized cost of loans held for investment, totaled $8.7 million and $7.4 million at June 30, 2024 and December 31, 2023, respectively, and is included in other assets in the Consolidated Balance Sheets.

Amortized cost in the above table includes $1.6 million and $2.8 million as of June 30, 2024 and December 31, 2023, respectively, in Paycheck Protection Program loans administered by the U.S. Small Business Administration within the Commercial & industrial loan segment.

Allowance for Credit Losses

The table below presents activity in the ACL related to loans held for investment for the periods indicated.


Three Months Ended June 30,	Beginning Balance	Credit Loss Expense (Benefit)	Charge-offs	Recoveries	Ending Balance
	(In Thousands)
2024
Commercial & industrial loans	$4,052	($22)	$—	$17	$4,047
Commercial real estate:
Owner occupied properties	2,893	70	—	—	2,963
Non-owner occupied and multifamily properties	3,419	80	—	—	3,499
Residential real estate:
1-4 family residential properties secured by first liens	3,425	64	—	—	3,489
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	581	80	—	4	665
1-4 family residential construction loans	159	21	—	—	180
Other construction, land development and raw land loans	2,675	(149)	—	—	2,526
Obligations of states and political subdivisions in the US	105	(5)	—	—	100
Agricultural production, including commercial fishing	156	(4)	—	5	157
Consumer loans	60	1	—	—	61
Other loans	8	(1)	—	—	7
Total	$17,533	$135	$—	$26	$17,694
2023
Commercial & industrial loans	$3,080	$366	($49)	$21	$3,418
Commercial real estate:
Owner occupied properties	2,778	29	—	—	2,807
Non-owner occupied and multifamily properties	3,174	86	—	—	3,260
Residential real estate:
1-4 family residential properties secured by first liens	2,226	980	—	—	3,206
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	392	26	—	5	423
1-4 family residential construction loans	260	(54)	—	—	206
Other construction, land development and raw land loans	1,925	71	—	—	1,996
Obligations of states and political subdivisions in the US	106	(18)	—	—	88
Agricultural production, including commercial fishing	150	12	—	—	162
Consumer loans	61	12	—	1	74
Other loans	5	—	—	—	5
Total	$14,157	$1,510	($49)	$27	$15,645


Six Months Ended June 30,	Beginning Balance	Credit Loss Expense (Benefit)	Charge-offs	Recoveries	Ending Balance
	(In Thousands)
2024
Commercial & industrial loans	$3,438	$532	$—	$77	$4,047
Commercial real estate:
Owner occupied properties	2,867	96	—	—	2,963
Non-owner occupied and multifamily properties	3,294	205	—	—	3,499
Residential real estate:
1-4 family residential properties secured by first liens	3,470	19	—	—	3,489
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	551	104	—	10	665
1-4 family residential construction loans	191	(11)	—	—	180
Other construction, land development and raw land loans	3,127	(601)	—	—	2,526
Obligations of states and political subdivisions in the US	80	20	—	—	100
Agricultural production, including commercial fishing	168	9	(25)	5	157
Consumer loans	81	(21)	—	1	61
Other loans	3	4	—	—	7
Total	$17,270	$356	($25)	$93	$17,694
2023
Commercial & industrial loans	$2,914	$467	($49)	$86	$3,418
Commercial real estate:
Owner occupied properties	3,094	(287)	—	—	2,807
Non-owner occupied and multifamily properties	3,615	(355)	—	—	3,260
Residential real estate:
1-4 family residential properties secured by first liens	1,413	1,793	—	—	3,206
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	389	22	—	12	423
1-4 family residential construction loans	312	(106)	—	—	206
Other construction, land development and raw land loans	1,803	193	—	—	1,996
Obligations of states and political subdivisions in the US	79	9	—	—	88
Agricultural production, including commercial fishing	145	17	—	—	162
Consumer loans	68	17	(14)	3	74
Other loans	6	(1)	—	—	5
Total	$13,838	$1,769	($63)	$101	$15,645

The following table shows gross charge-offs by year of loan origination for the periods indicated:


Six Months Ended June 30,

(In Thousands)	2024	2023	2022	2021	2020	Prior	Total
2024










Agricultural production, including commercial fishing	$—	$—	$25	$—	$—	$—	$25


Total	$—	$—	$25	$—	$—	$—	$25

Credit Quality Information

As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management utilizes a loan risk grading system called the Asset Quality Rating (“AQR”) system to assign a risk classification to each of its loans. The risk classification is a dual rating system that contemplates both probability of default and risk of loss given default. Loans are graded on a scale of 1 to 10 and, loans graded 1 – 6 are considered “pass” grade loans. Loans graded 7 or higher are considered “classified” loans. A description of the general characteristics of the AQR risk classifications are as follows:

Pass grade loans – 1 through 6: The borrower demonstrates sufficient cash flow to fund debt service, including acceptable profit margins, cash flows, liquidity and other balance sheet ratios. Historic and projected performance indicates that the borrower is able to meet obligations under most economic circumstances. The borrower has competent management with an acceptable track record. The category does not include loans with undue or unwarranted credit risks that constitute identifiable weaknesses.

Classified loans:

Special Mention – 7: A “special mention” credit has weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset at some future date.

Substandard – 8: A “substandard” credit is inadequately protected by the current worth and paying capacity of the obligor or by the collateral pledged, if any. Assets so classified must have a well-defined weakness, or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that Northrim Bank will sustain some loss if the deficiencies are not corrected.

Doubtful – 9: An asset classified “doubtful” has all the weaknesses inherent in one that is classified "substandard-8" with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions, and values, highly questionable and improbable. The loan has substandard characteristics, and available information suggests that it is unlikely that the loan will be repaid in its entirety.

Loss – 10: An asset classified “loss” is considered uncollectible and of such little value that its continuance on the books is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this basically worthless asset, even though partial recovery may be affected in the future.

The following tables present the Company's portfolio of risk-rated loans by grade and by year of origination. Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal of loan constitutes a current period origination. Generally, current period renewals of credit are re-underwritten at the point of renewal and considered current period originations for purposes of the table below.


June 30, 2024	2024	2023	2022	2021	2020	Prior	Total
	(In Thousands)
Commercial & industrial loans
Pass	$64,413	$78,672	$103,490	$48,862	$17,388	$57,242	$370,067
Classified	344	4,676	16,918	15,735	6,178	2,013	45,864
Total commercial & industrial loans	$64,757	$83,348	$120,408	$64,597	$23,566	$59,255	$415,931

Commercial real estate:
Owner occupied properties
Pass	$17,609	$43,546	$77,465	$67,033	$78,768	$95,049	$379,470
Classified	—	—	492	—	358	1,730	2,580


Total commercial real estate owner occupied properties	$17,609	$43,546	$77,957	$67,033	$79,126	$96,779	$382,050

Non-owner occupied and multifamily properties
Pass	$25,950	$63,898	$108,205	$77,767	$66,823	$193,723	$536,366
Classified	—	—	1,167	—	—	9,955	11,122
Total commercial real estate non-owner occupied and multifamily properties	$25,950	$63,898	$109,372	$77,767	$66,823	$203,678	$547,488

Residential real estate:
1-4 family residential properties secured by first liens
Pass	$24,144	$135,976	$46,441	$3,935	$3,954	$7,320	$221,770
Classified	—	544	—	—	—	174	718
Total residential real estate 1-4 family residential properties secured by first liens	$24,144	$136,520	$46,441	$3,935	$3,954	$7,494	$222,488

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens
Pass	$8,452	$15,066	$5,677	$2,935	$2,028	$6,649	$40,807
Classified	—	372	—	—	—	321	693
Total residential real estate 1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	$8,452	$15,438	$5,677	$2,935	$2,028	$6,970	$41,500

1-4 family residential construction loans
Pass	$15,414	$7,588	$2,730	$—	$—	$3,443	$29,175
Classified	—	—	—	—	—	106	106
Total residential real estate 1-4 family residential construction loans	$15,414	$7,588	$2,730	$—	$—	$3,549	$29,281

Other construction, land development and raw land loans
Pass	$15,089	$53,727	$49,235	$25,769	$1,704	$5,451	$150,975
Classified	—	—	—	32	—	1,760	1,792
Total other construction, land development and raw land loans	$15,089	$53,727	$49,235	$25,801	$1,704	$7,211	$152,767

Obligations of states and political subdivisions in the US
Pass	$—	$—	$29,648	$—	$—	$23	$29,671
Classified	—	—	—	—	—	—	—
Total obligations of states and political subdivisions in the US	$—	$—	$29,648	$—	$—	$23	$29,671

Agricultural production, including commercial fishing
Pass	$5,211	$9,055	$8,982	$16,443	$3,287	$2,101	$45,079
Classified	—	—	—	—	—	—	—
Total agricultural production, including commercial fishing	$5,211	$9,055	$8,982	$16,443	$3,287	$2,101	$45,079

Consumer loans
Pass	$1,547	$2,793	$833	$95	$327	$1,146	$6,741
Classified	2	—	—	—	—	—	2
Total consumer loans	$1,549	$2,793	$833	$95	$327	$1,146	$6,743

Other loans
Pass	$488	$359	$150	$296	$1,320	$296	$2,909
Classified	—	—	—	—	—	—	—
Total other loans	$488	$359	$150	$296	$1,320	$296	$2,909

Total loans
Pass	$178,317	$410,680	$432,856	$243,135	$175,599	$372,443	$1,813,030
Classified	346	5,592	18,577	15,767	6,536	16,059	62,877
Total loans	$178,663	$416,272	$451,433	$258,902	$182,135	$388,502	$1,875,907

Total pass loans	$178,317	$410,680	$432,856	$243,135	$175,599	$372,443	$1,813,030
Government guarantees	(24,829)	(5,293)	(8,343)	(16,724)	(1,946)	(19,472)	(76,607)
Total pass loans, net of government guarantees	$153,488	$405,387	$424,513	$226,411	$173,653	$352,971	$1,736,423

Total classified loans	$346	$5,592	$18,577	$15,767	$6,536	$16,059	$62,877


Government guarantees	—	(2,276)	(16,622)	(14,162)	(5,882)	(7,965)	(46,907)
Total classified loans, net government guarantees	$346	$3,316	$1,955	$1,605	$654	$8,094	$15,970


December 31, 2023	2023	2022	2021	2020	2019	Prior	Total
	(In Thousands)
Commercial & industrial loans
Pass	$97,377	$123,874	$58,708	$24,177	$13,990	$44,674	$362,800
Classified	3,319	18,790	16,964	7,032	56	2,426	48,587
Total commercial & industrial loans	$100,696	$142,664	$75,672	$31,209	$14,046	$47,100	$411,387

Commercial real estate:
Owner occupied properties
Pass	$40,745	$70,925	$69,316	$82,339	$28,588	$71,930	$363,843
Classified	—	—	—	1,115	—	1,783	2,898
Total commercial real estate owner occupied properties	$40,745	$70,925	$69,316	$83,454	$28,588	$73,713	$366,741

Non-owner occupied and multifamily properties
Pass	$59,990	$96,532	$83,277	$67,037	$56,192	$143,619	$506,647
Classified	—	—	—	—	—	8,881	8,881
Total commercial real estate non-owner occupied and multifamily properties	$59,990	$96,532	$83,277	$67,037	$56,192	$152,500	$515,528

Residential real estate:
1-4 family residential properties secured by first liens
Pass	$139,829	$47,775	$4,119	$4,070	$2,240	$5,388	$203,421
Classified	224	—	—	—	—	93	317
Total residential real estate 1-4 family residential properties secured by first liens	$140,053	$47,775	$4,119	$4,070	$2,240	$5,481	$203,738

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens
Pass	$16,145	$5,417	$3,331	$1,906	$2,277	$4,581	$33,657
Classified	—	—	—		—	339	339
Total residential real estate 1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	$16,145	$5,417	$3,331	$1,906	$2,277	$4,920	$33,996

1-4 family residential construction loans
Pass	$16,845	$4,469	$—	$—	$—	$9,553	$30,867
Classified	—	—	—	—	—	109	109
Total residential real estate 1-4 family residential construction loans	$16,845	$4,469	$—	$—	$—	$9,662	$30,976

Other construction, land development and raw land loans
Pass	$42,615	$58,714	$32,780	$1,982	$1,454	$7,896	$145,441
Classified	—	1,175	—	—	—	1,757	2,932
Total other construction, land development and raw land loans	$42,615	$59,889	$32,780	$1,982	$1,454	$9,653	$148,373

Obligations of states and political subdivisions in the US
Pass	$—	$30,317	$—	$—	$—	$90	$30,407
Classified	—	—	—	—	—	—	—
Total obligations of states and political subdivisions in the US	$—	$30,317	$—	$—	$—	$90	$30,407

Agricultural production, including commercial fishing
Pass	$8,643	$9,649	$17,061	$3,465	$524	$1,665	$41,007
Classified	—	—	—	—	—	—	—
Total agricultural production, including commercial fishing	$8,643	$9,649	$17,061	$3,465	$524	$1,665	$41,007

Consumer loans
Pass	$3,396	$983	$209	$368	$258	$1,026	$6,240
Classified	1	—	—	—	—	—	1


Total consumer loans	$3,397	$983	$209	$368	$258	$1,026	$6,241

Other loans
Pass	$160	$77	$135	$592	$138	$1	$1,103
Classified	—	—	—	—	—	—	—
Total other loans	$160	$77	$135	$592	$138	$1	$1,103

Total loans
Pass	$425,745	$448,732	$268,936	$185,936	$105,661	$290,423	$1,725,433
Classified	3,544	19,965	16,964	8,147	56	15,388	64,064
Total loans	$429,289	$468,697	$285,900	$194,083	$105,717	$305,811	$1,789,497

Total pass loans	$425,745	$448,732	$268,936	$185,936	$105,661	$290,423	$1,725,433
Government guarantees	(2,792)	(8,409)	(19,305)	(2,295)	(12,133)	(7,696)	(52,630)
Total pass loans, net of government guarantees	$422,953	$440,323	$249,631	$183,641	$93,528	$282,727	$1,672,803

Total classified loans	$3,544	$19,965	$16,964	$8,147	$56	$15,388	$64,064
Government guarantees	—	(16,805)	(15,268)	(7,043)	—	(11,311)	(50,427)
Total classified loans, net government guarantees	$3,544	$3,160	$1,696	$1,104	$56	$4,077	$13,637

Past Due Loans: The following tables present an aging of contractually past due loans as of the periods presented:


(In Thousands)	30-59 Days Past Due	60-89 Days Past Due	Greater Than 90 Days Past Due	Total Past Due	Current	Total	Greater Than 90 Days Past Due Still Accruing
June 30, 2024
Commercial & industrial loans	$295	$—	$—	$295	$415,636	$415,931	$—
Commercial real estate:
Owner occupied properties	—	—	—	—	382,050	382,050	—
Non-owner occupied and multifamily properties	—	—	—	—	547,488	547,488	—
Residential real estate:
1-4 family residential properties secured by first liens	42	—	216	258	222,230	222,488	—
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	44	372	54	470	41,030	41,500	17
1-4 family residential construction loans	—	—	—	—	29,281	29,281	—
Other construction, land development and raw land loans	170	—	—	170	152,597	152,767	—
Obligations of states and political subdivisions in the US	—	—	—	—	29,671	29,671	—
Agricultural production, including commercial fishing	—	—	—	—	45,079	45,079	—
Consumer loans	14	2	—	16	6,727	6,743	—
Other loans	—	—	—	—	2,909	2,909	—
Total	$565	$374	$270	$1,209	$1,874,698	$1,875,907	$17
December 31, 2023
Commercial & industrial loans	$326	$148	$1,253	$1,727	$409,660	$411,387	$—
Commercial real estate:
Owner occupied properties	—	—	260	260	366,481	366,741	—
Non-owner occupied and multifamily properties	—	—	—	—	515,528	515,528	—
Residential real estate:
1-4 family residential properties secured by first liens	458	—	224	682	203,056	203,738	—
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	53	—	155	208	33,788	33,996	—
1-4 family residential construction loans	—	—	109	109	30,867	30,976	—
Other construction, land development and raw land loans	—	—	1,545	1,545	146,828	148,373	—
Obligations of states and political subdivisions in the US	—	—	—	—	30,407	30,407	—
Agricultural production, including commercial fishing	—	—	—	—	41,007	41,007	—
Consumer loans	18	1	—	19	6,222	6,241	—
Other loans	—	—	—	—	1,103	1,103	—
Total	$855	$149	$3,546	$4,550	$1,784,947	$1,789,497	$—

Nonaccrual loans: Nonaccrual loans net of government guarantees totaled $4.8 million and $5.0 million at June 30, 2024 and December 31, 2023, respectively. The following table presents loans on nonaccrual status and loans on nonaccrual status for the periods presented for which there was no related ACL. All loans with no ACL are individually evaluated for credit losses in the Company's CECL methodology.


	June 30, 2024		December 31, 2023
(In Thousands)	Nonaccrual	Nonaccrual With No ACL	Nonaccrual	Nonaccrual With No ACL

Commercial & industrial loans	$2,516	$2,221	$3,655	$3,651
Commercial real estate:
Owner occupied properties	242	242	271	260
Non-owner occupied and multifamily properties	—	—	—	—
Residential real estate:
1-4 family residential properties secured by first liens	253	—	270	224
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	201	108	219	176
1-4 family residential construction loans	106	106	109	109
Other construction, land development and raw land loans	1,512	1,512	1,545	1,545




Total nonaccrual loans	4,830	4,189	6,069	5,965
Government guarantees on nonaccrual loans	—	—	(1,067)	(1,067)
Net nonaccrual loans	$4,830	$4,189	$5,002	$4,898

There was no interest on nonaccrual loans reversed through interest income during the three and six-month periods ending June 30, 2024 or June 30, 2023.

There was no interest earned on nonaccrual loans with a principal balance during the three and six-month periods ending June 30, 2024 and June 30, 2023. However, the Company recognized interest income of $32,000 and $205,000 in the three-month periods ending June 30, 2024 and 2023, respectively, and $234,000 and $384,000 in the six-month periods ending June 30, 2024 and 2023, respectively, related to interest collected on nonaccrual loans whose principal had been paid down to zero.

Loan Modifications: The Company modifies loans to borrowers experiencing financial difficulty as a normal part of our business. These modifications include providing term extensions/modifications, payment modifications, interest rate modifications, or, on rare occasions, principal forgiveness. When principal forgiveness is provided, the amount of forgiveness is charged-off against the ACL. The Company may provide multiple types of concessions on one loan.

The following table shows the amortized cost basis of the loans that were both experiencing financial difficulty and modified as of the dates indicated, by class and type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers experiencing financial difficulty as compared to the amortized cost basis of each class of financing receivable is also presented below:

Three Months Ended June 30, 2024

Term Modification

Payment Modification

Total Modifications

Percentage of Class of Financing Receivable

(In Thousands)

Commercial & industrial loans

$—

—

Total

$—

—


	Three Months Ended June 30, 2023
	Term Modification	Payment Modification	Total Modifications	Percentage of Class of Financing Receivable
(In Thousands)
Commercial & industrial loans	$2,468	$1,988	$4,456	1.06	%












Total	$2,468	$1,988	$4,456	—	%


	Six Months Ended June 30, 2024
	Term Modification	Term and payment modifications	Total Modifications	Percentage of Class of Financing Receivable
(In Thousands)
Commercial & industrial loans	$5,396	$265	$5,661	1.36	%












Total	$5,396	$265	$5,661	0.30	%


	Six Months Ended June 30, 2023
	Term Modification	Term and payment modifications	Total Modifications	Percentage of Class of Financing Receivable
(In Thousands)
Commercial & industrial loans	$2,468	$1,988	$4,456	1.06	%












Total	$2,468	$1,988	$4,456	—	%

The Company has no outstanding unfunded commitments to the borrowers included in the previous tables.

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty as of the dates indicated:


	Three Months Ended June 30, 2024
	Principal Forgiveness	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (months)
(In Thousands)
Commercial & industrial loans	$—	—	%	0


	Three Months Ended June 30, 2023
	Principal Forgiveness	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (months)
(In Thousands)
Commercial & industrial loans	$—	—	%	3


	Six Months Ended June 30, 2024
	Principal Forgiveness	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (months)
(In Thousands)
Commercial & industrial loans	$—	8	%	7


	Six Months Ended June 30, 2023
	Principal Forgiveness	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (months)
(In Thousands)
Commercial & industrial loans	$—	—	%	3

The following table presents the amortized cost basis of loans that had a payment default during the period indicated and were modified in the twelve months before default to borrowers experiencing financial difficulty:


	Three Months Ended June 30, 2024	Six Months Ended June 30, 2024
	Term modification	Term modification
(In Thousands)




Residential real estate:

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	$—	$112
1-4 family residential construction loans	—	109
Other construction, land development and raw land loans	—	968




Total	$—	$1,189

There were no loans that had a payment default during the three or six-month periods ended June 30, 2023 which were modified in the twelve months prior to that default to borrowers experiencing financial difficulty.

The Company 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 payment performance of loans that have been modified in the last twelve months as of the date indicated:


	June 30, 2024
	Greater Than 89 Days Past Due	Total Past Due	Current	Total
(In Thousands)
Commercial & industrial loans	$—	$—	$5,394	$5,394
Commercial real estate:
Owner occupied properties	—	—	242	242

Residential real estate:

1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens	—	—	108	108
1-4 family residential construction loans	—	—	106	106
Other construction, land development and raw land loans	—	—	1,512	1,512




Total	$—	$—	$7,362	$7,362


	June 30, 2023
	Greater Than 89 Days Past Due	Total Past Due	Current	Total
(In Thousands)
Commercial & industrial loans	$—	$—	$4,456	$4,456












Total	$—	$—	$4,456	$4,456

Upon the Company's determination that a modified loan (or a portion of a loan) has subsequently been deemed uncollectible, the loan (or a 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.