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Loans and Allowance for Credit Losses - Loans
 3 Months Ended
Mar. 31, 2024
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
Loans and Allowance for Credit Losses - Loans Loans and Allowance for Credit Losses - Loans
Mid Penn adopted the amendments of FASB ASU 2016-13, on January 1, 2023. The amendments of ASU 2016-13 created FASB ASC Topic 326, "Financial Instruments – Credit Losses," which, among other things, replace much of the guidance and disclosures previously provided in FASB ASC Topic 310, "Receivables." The guidance in FASB ASC Topic 326 replaces the incurred loss methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to determine credit losses. In accordance with FASB ASC Subtopic 326-20, "Financial Instruments – Credit Losses – Measured at Amortized Cost," Mid Penn has developed an ACL methodology effective January 1, 2023, which replaces its previous allowance for loan losses methodology. See the section captioned "Allowance for Credit Losses, effective January 1, 2023" within this note for additional information regarding Mid Penn’s ACL.
Loans, net of unearned income, are summarized as follows by portfolio segment:
(In thousands)March 31, 2024December 31, 2023
Commercial real estate
CRE Nonowner Occupied$1,174,774 $1,149,553 
CRE Owner Occupied622,574 629,904 
Multifamily334,952 309,059 
Farmland212,018 212,690 
Total Commercial real estate2,344,318 2,301,206 
Commercial and industrial
671,395 675,079 
Construction
Residential Construction103,861 92,843 
Other Construction383,428 362,624 
Total Construction487,289 455,467 
Residential mortgage
1-4 Family 1st Lien334,557 339,142 
1-4 Family Rental340,052 341,937 
HELOC and Junior Liens132,703 132,795 
Total Residential Mortgage807,312 813,874 
Consumer7,135 7,166 
Total loans$4,317,449 $4,252,792 

Total loans are stated at the amount of unpaid principal, adjusted for net deferred fees and costs. Net deferred loan fees of $4.0 million and $4.2 million reduced the carrying value of loans as of March 31, 2024 and December 31, 2023, respectively.
Accrued interest receivable is not included in the amortized cost basis of Mid Penn's loans. At March 31, 2024, accrued interest receivable for loans totaled $23.2 million with no related ACL and was reported in other assets on the accompanying Consolidated Balance Sheet.
Past Due and Nonaccrual Loans
The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. The classes of the loan portfolio summarized by the past due status as of March 31, 2024 and December 31, 2023, are summarized as follows:
(In thousands)30-59
Days Past
Due		60-89
Days Past
Due		Greater
than 90
Days		Total Past
Due		CurrentTotal LoansLoans
Receivable
> 90 Days and
Accruing
March 31, 2024
Commercial real estate$9,647 $— $778 $10,425 $2,333,893 $2,344,318 $— 
Commercial and industrial— 87 1,771 1,858 669,537 671,395 — 
Construction— — — — 487,289 487,289 — 
Residential mortgage1,328 387 2,201 3,916 803,396 807,312 — 
Consumer18 — 25 43 7,092 7,135 25 
Total$10,993 $474 $4,775 $16,242 $4,301,207 $4,317,449 $25 
(In thousands)30-59
Days Past
Due		60-89
Days Past
Due		Greater
than 90
Days		Total Past
Due		CurrentTotal LoansLoans
Receivable
> 90 Days and
Accruing
December 31, 2023
Commercial real estate$5,073 $682 $2,974 $8,729 $2,292,477 $2,301,206 $— 
Commercial and industrial638 24 1,270 1,932 673,147 675,079 — 
Construction— 270 2,559 2,829 452,638 455,467 — 
Residential mortgage4,648 267 2,518 7,433 806,441 813,874 — 
Consumer41 31 — 72 7,094 7,166 — 
Total$10,400 $1,274 $9,321 $20,995 $4,231,797 $4,252,792 $— 
Loans are placed on nonaccrual status when management determines that the full repayment of principal and collection of interest according to contractual terms is no longer likely, generally when the loan becomes 90 days or more past due. Nonaccrual loans by loan portfolio class, including loans acquired with credit deterioration, as of March 31, 2024 and December 31, 2023 are summarized as follows:
March 31, 2024December 31, 2023
(In thousands)With a Related AllowanceWithout a Related AllowanceTotalWith a Related AllowanceWithout a Related AllowanceTotal
Commercial real estate$449 $4,139 $4,588 $454 $6,133 $6,587 
Commercial and industrial1,202 1,156 2,358 1,222 64 1,286 
Construction— — — — 2,559 2,559 
Residential mortgage41 3,402 3,443 2 3,782 3,784 
Consumer— — — — — — 
$1,692 $8,697 $10,389 $1,678 $12,538 $14,216 
The amount of interest income recognized on nonaccrual loans was approximately $159 thousand and $182 thousand during the three months ended March 31, 2024 and 2023, respectively.
Credit Quality Indicators
Mid Penn categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. On a minimum of a quarterly basis, Mid Penn analyzes loans individually to classify the loans as to their credit risk. The following table presents risk ratings by loan portfolio segment and origination year, which is the year of origination or renewal.
PASS - This type of classification consists of 6 subcategories:    
Nominal Risk / Pass - This loan classification is a credit extension of the highest quality.
Moderate Risk / Pass - This type of classification has strong financial ratios, substantial debt capacity, and low leverage with a very favorable comparison to industry peers or better than average improving trends are necessary to be in this classification.
Good Acceptable Risk / Pass - The Borrower in this rating classification is a reasonable credit risk having financial ratios on par with its peers and demonstrates slightly improving trends over time; they list good quality assets and fairly low leverage plus ample debt capacity.
Average Acceptable Risk / Pass - This type of classification has financial ratios and assets are of above average quality, the leverage is worse than average compared to industry standards; the Borrower should have a good repayment history and possess consistent earnings with some growth.
Marginally Acceptable Risk / Pass - This type of classification has financial ratios consistent with industry averages, assets of average quality with ascertainable values, acceptable leverage, moderate capital assets and an acceptable reliance on trade debt; the Borrower demonstrates marginally adequate earnings, cash flow and debt service plus positive trends.
Weak/Monitor Risk (Watch list) / Pass - This type of classification has financial ratios are slightly below standard industry averages and assets are below average quality with unstable values; fixed assets could be near or at the end of their useful life plus liabilities may not match the asset structure.

SPECIAL MENTION - These credits have developing weaknesses deserving extra attention from the lender and lending management. They are currently protected, but potentially weak. The weakness may be, cash flow, leverage, liquidity, management, industry or other factors which may, if not checked or corrected, weaken the asset or inadequately protect the Bank’s credit position at some future date.

SUBSTANDARD - These credit extensions also have well defined weaknesses, which are inadequately protected by the current worth and debt service capacity of the Borrowers, or the collateral pledged, if any. The repayment of principal and interest as originally intended can be jeopardized by defined weaknesses related to adverse financial, managerial, economic, market or political conditions.

DOUBTFUL - These credits have definite weaknesses inherent in Substandard loans with added characteristics that are severe enough to make further collection in full highly questionable and improbable based on the current trends.

LOSS. These loans are considered uncollectible and no longer a viable asset of the Bank. They lack an identifiable source of repayment based on an inability to generate sufficient cash flow to service their debt. All trends are negative and the damage to the financial condition of the Borrower can’t be reversed now or in the near future.
March 31, 2024
Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized
Cost Basis
(In thousands)20242023202220212020PriorTotal
Commercial real estate
Pass$49,466 $289,970 $568,000 $372,639 $293,680 $688,117 $43,525 $2,305,397 
Special mention— 188 434 — — 16,407 191 17,220 
Substandard or lower— — 2,990 206 3,146 15,313 46 21,701 
Total commercial real estate49,466 290,158 571,424 372,845 296,826 719,837 43,762 2,344,318 
Commercial and industrial
Pass33,909 147,232 97,313 62,551 28,200 104,941 189,231 663,377 
Special mention— 79 61 282 — 2,280 2,272 4,974 
Substandard or lower— — — 591 — 1,938 515 3,044 
Total commercial and industrial33,909 147,311 97,374 63,424 28,200 109,159 192,018 671,395 
Construction
Pass13,362 164,703 185,710 56,475 20,419 16,024 28,785 485,478 
Special mention— — — — 1,811 — — 1,811 
Substandard or lower— — — — — — — — 
Total construction13,362 164,703 185,710 56,475 22,230 16,024 28,785 487,289 
Residential mortgage
Performing25,512 145,753 148,963 109,236 87,274 197,768 84,656 799,162 
Non-performing— 178 — 79 1,666 6,129 98 8,150 
Total residential mortgage25,512 145,931 148,963 109,315 88,940 203,897 84,754 807,312 
Gross charge offs— — (21)— — (7)— (28)
Net charge offs— — (21)— — (7)— (28)
Consumer
Performing1,550 1,251 622 591 221 281 2,619 7,135 
Non-performing— — — — — — — — 
Total consumer1,550 1,251 622 591 221 281 2,619 7,135 
Gross charge offs(16)— (2)— — (4)— (22)
Current period recoveries5 — — — — 1.00 — 6 
Net charge offs(11)— (2)— — (3)— (16)
Total
Pass$96,737 $601,905 $851,023 $491,665 $342,299 $809,082 $261,541 $3,454,252 
Special mention— 267 495 282 1,811 18,687 2,463 24,005 
Substandard or lower— — 2,990 797 3,146 17,251 561 24,745 
Performing27,062 147,004 149,585 109,827 87,495 198,049 87,275 806,297 
Nonperforming— 178 — 79 1,666 6,129 98 8,150 
Total$123,799 $749,354 $1,004,093 $602,650 $436,417 $1,049,198 $351,938 $4,317,449 
December 31, 2023
Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized
Cost Basis
(In thousands)20232022202120202019PriorTotal
Commercial real estate
Pass$271,655 $556,801 $386,911 $297,746 $178,434 $528,326 $38,261 $2,258,134 
Special mention194 — — — 6,009 10,482 186 16,871 
Substandard or lower— 5,209 208 3,162 229 17,345 48 26,201 
Total commercial real estate271,849 562,010 387,119 300,908 184,672 556,153 38,495 2,301,206 
Gross charge offs— — — — — (16)— (16)
Net charge offs— — — — — (16)— (16)
Commercial and industrial
Pass158,824 106,714 68,448 29,961 50,206 57,892 188,714 660,759 
Special mention— 89 2,224 — 227 2,200 4,391 9,131 
Substandard or lower— — 662 — — 1,978 2,549 5,189 
Total commercial and industrial158,824 106,803 71,334 29,961 50,433 62,070 195,654 675,079 
Gross charge offs— (100)— (111)— (27)— (238)
Net charge offs— (100)— (111)— (27)— (238)
Construction
Pass153,596 181,214 54,658 22,357 10,247 5,856 23,262 451,190 
Special mention— — — 1,447 — — — 1,447 
Substandard or lower— 573 — — — 2,257 — 2,830 
Total construction153,596 181,787 54,658 23,804 10,247 8,113 23,262 455,467 
Residential mortgage
Performing158,634 153,203 111,610 90,382 27,863 178,898 87,723 808,313 
Non-performing— — 93 1,470 — 3,998 — 5,561 
Total residential mortgage158,634 153,203 111,703 91,852 27,863 182,896 87,723 813,874 
Gross charge offs— — — — — (13)— (13)
Current period recoveries— — — — — 38 — 38 
Net recoveries— — — — — 25 — 25 
Consumer
Performing2,361 754 649 273 223 103 2,803 7,166 
Total consumer2,361 754 649 273 223 103 2,803 7,166 
Gross charge offs(86)— (10)(9)— (30)— (135)
Current period recoveries26 — — 1 — 5 — 32 
Net charge offs(60)— (10)(8)— (25)— (103)
Total
Pass$584,075 $844,729 $510,017 $350,064 $238,887 $592,074 $250,237 $3,370,083 
Special mention194 89 2,224 1,447 6,236 12,682 4,577 27,449 
Substandard or lower— 5,782 870 3,162 229 21,580 2,597 34,220 
Performing160,995 153,957 112,259 90,655 28,086 179,001 90,526 815,479 
Nonperforming— — 93 1,470 — 3,998 — 5,561 
Total$745,264 $1,004,557 $625,463 $446,798 $273,438 $809,335 $347,937 $4,252,792 
Mid Penn had no loans classified as "doubtful" as of March 31, 2024 and December 31, 2023. There was $892 thousand and $121 thousand in loans for which formal foreclosure proceedings were in process at March 31, 2024 and December 31, 2023.
Collateral-Dependent Loans
A financial asset is considered to be collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. For all classes of financial assets deemed collateral-dependent, Mid Penn elected the practical expedient to estimate expected credit losses based on the collateral’s fair value less cost to sell. In most cases, Mid Penn records a partial charge-off to reduce the loan’s carrying value to the collateral’s fair value less cost to sell. Substantially all of the collateral supporting collateral-dependent financial assets consists of various types of real estate, including residential properties; commercial properties such as retail centers, office buildings, and lodging; agriculture land; and vacant land.
Allowance for Credit Losses, effective January 1, 2023

Mid Penn’s ACL - loans methodology is based upon guidance within FASB ASC Subtopic 326-20, as well as regulatory guidance from the FDIC, its primary federal regulator. The ACL - loans is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Credit quality within the loan portfolio is continuously monitored by management and is reflected within the ACL - loans. The ACL - loans is an estimate of expected losses inherent within Mid Penn’s existing loan portfolio. The ACL - loans is adjusted through the PCL and reduced by the charge off of loan amounts, net of recoveries.
The loan loss estimation process involves procedures to appropriately consider the unique characteristics of Mid Penn’s loan portfolio segments. When computing allowance levels, credit loss assumptions are estimated using a model that categorizes loan pools based on loss history and other credit trends and risk characteristics, including current conditions and reasonable and supportable forecasts about the future. Evaluations of the portfolio and individual credits are inherently subjective, as they require estimates, assumptions and judgments as to the facts and circumstances of particular situations. Determining the appropriateness of the allowance is complex and requires judgement by management about the effect of matters that are inherently uncertain. In future periods, evaluations of the overall loan portfolio, in light of the factors and forecasts then prevailing, may result in significant changes in the ACL and credit loss expense.
Mid Penn estimates the ACL using relevant available information, from internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Mid Penn uses a third-party software application to calculate the quantitative portion of the ACL using a methodology and assumptions specific to each loan pool. The qualitative portion of the allowance is based on general economic conditions and other internal and external factors affecting Mid Penn as a whole, as well as specific loans. Factors considered include the following: lending process, concentrations of credit, and credit quality. The quantitative and qualitative portions of the allowance are added together to determine the total ACL, which reflects management’s expectations of future conditions based on reasonable and supportable forecasts.
The methodology for estimating the amount of expected credit losses reported in the ACL has two basic components: a collective, or pooled, component for estimated expected credit losses for pools of loans that share similar risk characteristics, and an asset-specific component involving individual loans that do not share risk characteristics with other loans and the measurement of expected credit losses for such individual loans. In estimating the ACL for the collective component, loans are segregated into loan pools based on loan purpose codes and similar risk characteristics.
The commercial real estate and residential mortgage loan portfolio segments include loans for both commercial and residential properties that are secured by real estate. The underwriting process for these loans includes analysis of the financial position and strength of both the borrower and, if applicable, guarantor, experience with similar projects in the past, market demand and prospects for successful completion of the proposed project within the established budget and schedule, values of underlying collateral, availability of permanent financing, maximum loan-to-value ratios, minimum equity requirements, acceptable amortization periods and minimum debt service coverage requirements, based on property type. The borrower’s financial strength and capacity to repay their obligations remain the primary focus of underwriting. Financial strength is evaluated based upon analytical tools that consider historical and projected cash flows and performance, in addition to analysis of the proposed project for income-producing properties. Additional support offered by guarantors is also considered when applicable. Ultimate repayment of these loans is sensitive to interest rate changes, general economic conditions, liquidity and availability of long-term financing.
The commercial and industrial loan portfolio segment includes commercial loans made to many types of businesses for various purposes, such as short-term working capital loans that are usually secured by accounts receivable and inventory, equipment and fixed asset purchases that are secured by those assets, and term financing for those within Mid Penn’s geographic markets. Mid Penn’s credit underwriting process for commercial and industrial loans includes analysis of historical and projected cash flows and performance, evaluation of financial strength of both borrowers and guarantors as reflected in current and detailed financial information, and evaluation of underlying collateral to support the credit.
The consumer loan portfolio segment is comprised of loans which are underwritten after evaluating a borrower’s capacity, credit and collateral. Several factors are considered when assessing a borrower’s capacity, including the borrower’s employment, income, current debt, assets and level of equity in the property. Credit is assessed using a credit report that provides credit scores and the borrower’s current and past information about their credit history. Loan-to-value and debt-to-income ratios, loan amount and lien position are also considered in assessing whether to originate a loan. These borrowers are particularly susceptible to downturns in economic trends, such as conditions that negatively affect housing prices and demand and levels of unemployment.
Mid Penn utilizes a DCF method to estimate the quantitative portion of the allowance for credit losses for loan pools. The DCF is based off of historical losses, including peer data, which is correlated to national unemployment and GDP.
The PD and LGD measures are used in conjunction with prepayment data as inputs into the DCF model to calculate the cash flows at the individual loan level. Contractual cash flows based on loan terms are adjusted for PD, LGD and prepayments to derive loss cash flows. These loss cash flows are discounted by the loan’s coupon rate to arrive at the discounted cash flow based quantitative loss. The prepayment studies are updated quarterly by a third-party for each applicable pool.
Mid Penn determined that reasonable and supportable forecasts could be made for a twelve-month period for all of its loan pools. To the extent the lives of the loans in the LHFI portfolio extend beyond this forecast period, Mid Penn uses a reversion period of four quarters and reverts to the historical mean on a straight-line basis over the remaining life of the loans.
Qualitative factors used in the ACL methodology include the following:
•Lending process
•Concentrations of credit
•Peer Group Divergence
The ACL for individual loans, such as non-accrual and PCD, that do not share risk characteristics with other loans is measured as the difference between the discounted value of expected future cash flows, based on the effective interest rate at origination, and the amortized cost basis of the loan, or the net realizable value. The ACL is the difference between the loan’s net realizable value and its amortized cost basis (net of previous charge-offs and deferred loan fees and costs), except for collateral-dependent loans. A loan is collateral dependent when the borrower is experiencing financial difficulty and repayment of the loan is expected to be provided substantially through the sale of the collateral. The expected credit loss for collateral-dependent loans is measured as the difference between the amortized cost basis of the loan and the fair value of the collateral, adjusted for the estimated cost to sell. Fair value estimates for collateral-dependent loans are derived from appraised values based on the current market value or the "as is" value of the collateral, normally from recently received and reviewed appraisals. Current appraisals are ordered on a regular basis based on the inspection date or more often if market conditions necessitate. Appraisals are obtained from state-certified appraisers and are based on certain assumptions, which may include construction or development status and the highest and best use of the property. These appraisals are reviewed by Mid Penn’s Real Estate Administration Group to ensure they are acceptable, and values are adjusted down for costs associated with asset disposal. If the calculated expected credit loss is determined to be permanent or not recoverable, the amount of the expected credit loss is charged off.
Mid Penn may also purchase loans or acquire loans through a business combination. At the purchase or acquisition date, loans are evaluated to determine whether there has been more than insignificant credit deterioration since origination. Loans that have experienced more than insignificant credit deterioration since origination are referred to as PCD loans. In its evaluation of whether a loan has experienced more than insignificant deterioration in credit quality since origination, Mid Penn takes into consideration loan grades, past due and nonaccrual status. Mid Penn may also consider external credit rating agency ratings for borrowers and for non-commercial loans, FICO score or band, probability of default levels, and number of times past due. At the purchase or acquisition date, the amortized cost basis of PCD loans is equal to the
purchase price and an initial estimate of credit losses. The initial recognition of expected credit losses on PCD loans has no impact on net income. When the initial measurement of expected credit losses on PCD loans is calculated on a pooled loan basis, the expected credit losses are allocated to each loan within the pool. Any difference between the initial amortized cost basis and the unpaid principal balance of the loan represents a noncredit discount or premium, which is accreted (or amortized) into interest income over the life of the loan. Subsequent changes to the ACL on PCD loans are recorded through the PCL. For purchased loans that are not deemed to have experienced more than insignificant credit deterioration since origination and are therefore not deemed PCD, any discounts or premiums included in the purchase price are accreted (or amortized) over the contractual life of the individual loan.
Loans are charged off against the ACL, with any subsequent recoveries credited back to the ACL account. Expected recoveries may not exceed the aggregate of amounts previously charged off and expected to be charged off.
The following tables present the activity in the ACL - loans by portfolio segment for the three months ended March 31, 2024 and three months ended March 31, 2023:
(In thousands)
As of March 31, 2024Balance at
December 31, 2023		Charge offsRecoveriesNet loans (charged off) recovered
(Benefit)/Provision for credit losses
Balance at
March 31, 2024
Commercial Real Estate
CRE Nonowner Occupied10,267 — — — 150 10,417 
CRE Owner Occupied5,646 — — — (44)5,602 
Multifamily2,202 — — — 168 2,370 
Farmland2,064 — — — (62)2,002 
Commercial and industrial7,131 — — — (631)6,500 
Construction
Residential Construction1,256 — — — (80)1,176 
Other Construction2,146 — — — 25 2,171 
Residential Mortgage
1-4 Family 1st Lien1,207 (7)— (7)71 1,271 
1-4 Family Rental1,859 (21)— (21)(299)1,539 
HELOC and Junior Liens389 — — — 68 457 
Consumer20 (22)6 (16)15 19 
Total34,187 (50)6 (44)(619)33,524 
(In thousands)Balance at
December 31, 2022		CECL ImpactCharge offsRecoveriesNet loans (charged off) recovered
Provision/(Benefit) for credit losses
Balance at
March 31, 2023
Commercial Real Estate
CRE Nonowner Occupied$8,284 $259 $— $— $— $(368)$8,175 
CRE Owner Occupied2,916 91 (16)— (16)88 3,079 
Multifamily1,111 35 — — — 13 1,159 
Farmland831 26 — — — 42 899 
Commercial and industrial4,593 6,601 (111)— (111)186 11,269 
Construction
Residential Construction— 1,270 — — — 153 1,423 
Other Construction— 1,931 — — — 277 2,208 
Residential Mortgage
1-4 Family 1st Lien370 1,307 (4)— (4)(317)1,356 
1-4 Family Rental288 731 — 30 30 17 1,066 
HELOC and Junior Liens661 (230)— — — 21 452 
Consumer29 154 (19)7 (12)8 179 
Unallocated(126)(244)— — — 370 — 
Total$18,957 $11,931 $(150)$37 $(113)$490 $31,265 
The following table presents the ACL for loans and the amortized cost basis of the loans by the measurement methodology used as of March 31, 2024 and December 31, 2023:
(In thousands)ACL - LoansLoans
March 31, 2024Collectively Evaluated for Credit LossIndividually Evaluated for Credit LossTotal ACL - LoansCollectively Evaluated for Credit LossIndividually Evaluated for Credit LossTotal Loans
Commercial real estate
CRE Nonowner Occupied$10,061 $356 $10,417 $1,172,396 $2,378 $1,174,774 
CRE Owner Occupied5,602 — 5,602 620,534 2,040 622,574 
Multifamily2,351 19 2,370 334,781 171 334,952 
Farmland2,002 — 2,002 212,018 — 212,018 
Commercial and industrial5,761 739 6,500 669,037 2,358 671,395 
Construction
Residential Construction1,176 — 1,176 103,861 — 103,861 
Other Construction2,171 — 2,171 383,428 — 383,428 
Residential mortgage
1-4 Family 1st Lien1,271 — 1,271 332,822 1,735 334,557 
1-4 Family Rental1,535 4 1,539 339,696 356 340,052 
HELOC and Junior Liens457 — 457 131,351 1,352 132,703 
Consumer19 — 19 7,135 — 7,135 
Total$32,406 $1,118 $33,524 $4,307,059 $10,390 $4,317,449 
(In thousands)ACL - LoansLoans
December 31, 2023Collectively Evaluated for Credit LossIndividually Evaluated for Credit LossTotal ACL - LoansCollectively Evaluated for Credit LossIndividually Evaluated for Credit LossTotal Loans
Commercial real estate
CRE Nonowner Occupied$9,906 $361 $10,267 $1,145,048 $4,505 $1,149,553 
CRE Owner Occupied5,646 — 5,646 627,995 1,909 629,904 
Multifamily2,190 12 2,202 308,886 173 309,059 
Farmland2,064 — 2,064 212,690 — 212,690 
Commercial and industrial6,419 712 7,131 673,793 1,286 675,079 
Construction
Residential Construction1,256 — 1,256 92,270 573 92,843 
Other Construction2,146 — 2,146 360,368 2,256 362,624 
Residential mortgage
1-4 Family 1st Lien1,207 — 1,207 337,267 1,875 339,142 
1-4 Family Rental1,857 2 1,859 341,236 701 341,937 
HELOC and Junior Liens389 — 389 131,587 1,208 132,795 
Consumer20 — 20 7,166 — 7,166 
Total$33,100 $1,087 $34,187 $4,238,306 $14,486 $4,252,792 
Modifications to Borrowers Experiencing Financial Difficulty
From time to time, we may modify certain loans to borrowers who are experiencing financial difficulty. In some cases, these modifications may result in new loans. Loan modifications to borrowers experiencing financial difficulty may be in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension, or a combination thereof, among other things.

There was one new modification for the quarter ending March 31, 2024. Information related to loans modified (by type of modification), whereby the borrower was experiencing financial difficulty at the time of modification, is set forth in the following table:

(In thousands)Interest Only
Term Extension		Combination:
Interest Only and
Term Extension		Total% of Total Class of Financing Receivable
Three months ended March 31, 2024
Residential Mortgage$— $— $92 $92 0.01 %
  Total$— $— $92 $92 0.01 %

(In thousands)Interest OnlyTerm ExtensionCombination:
Interest Only and
Term Extension		Total% of Total Class of Financing Receivable
Three months ended March 31, 2023
Commercial real estate$51 $— $180 $231 0.04 %
Total$51 $— $180 $231 0.04 %

The financial effects of the interest-only loan modifications reduced the monthly payment amounts for the borrower and the term extensions in the table above added a weighted-average of 2.0 years to the life of the loans, which also reduced the monthly payment amounts for the borrowers.