Loans | Note 3 — Loans Loans Receivable Loans consisted of the following as of the dates indicated: June 30, 2023 December 31, 2022 (in thousands) Real estate loans: Commercial property Retail $ 1,090,739 $ 1,023,608 Hospitality 686,168 646,893 Office 559,611 499,946 Other (1) 1,312,192 1,553,729 Total commercial property loans 3,648,710 3,724,176 Construction 89,613 109,205 Residential (2) 886,982 734,472 Total real estate loans 4,625,305 4,567,853 Commercial and industrial loans (3) 753,460 804,492 Equipment financing agreements 586,406 594,788 Loans receivable 5,965,171 5,967,133 Allowance for credit losses ( 71,024 ) ( 71,523 ) Loans receivable, net $ 5,894,147 $ 5,895,610 (1) Includes mixed-use, multifamily, industrial, gas stations, faith-based facilities, medical and warehouse; all other property types represent less than one percent of total loans receivable. (2) Includes $ 2.2 million and $ 2.4 million of home equity loans and lines, and $ 4.6 million and $ 4.6 million of personal loans at June 30, 2023 and December 31, 2022, respectively. (3) At June 30, 2023 and December 31, 2022, Paycheck Protection Program loans were $ 0.2 million and $ 0.9 million, respectively. Accrued interest on loans was $ 15.5 million and $ 16.0 million at June 30, 2023 and December 31, 2022, respectively. At June 30, 2023 and December 31, 2022, loans of $ 2.35 billion and $ 1.99 billion, respectively, were pledged to secure advances from the FHLB. Loans Held for Sale The following is the activity for loans held for sale for the three months ended June 30, 2023 and 2022: Real Estate Commercial and Industrial Total (in thousands) June 30, 2023 Balance at beginning of period $ 379 $ 3,273 $ 3,652 Originations and transfers 14,494 9,094 23,588 Sales ( 9,329 ) ( 10,614 ) ( 19,943 ) Principal paydowns and amortization — ( 4 ) ( 4 ) Balance at end of period $ 5,544 $ 1,749 $ 7,293 June 30, 2022 Balance at beginning of period $ 11,825 $ 3,792 $ 15,617 Originations and transfers 29,531 15,320 44,851 Sales ( 30,380 ) ( 11,557 ) ( 41,937 ) Principal paydowns and amortization — ( 3 ) ( 3 ) Balance at end of period $ 10,976 $ 7,552 $ 18,528 Loans held for sale was comprised of $ 7.3 million and $ 8.0 million of the guaranteed portion of SBA 7(a) loans at June 30, 2023 and December 31, 2022, respectively. The following is the activity for loans held for sale for the six months ended June 30, 2023 and 2022: Real Estate Commercial and Industrial Total (in thousands) June 30, 2023 Balance at beginning of period $ 3,775 $ 4,268 $ 8,043 Originations and transfers 30,881 18,023 48,904 Sales ( 29,111 ) ( 20,532 ) ( 49,643 ) Principal payoffs and amortization ( 1 ) ( 10 ) ( 11 ) Balance at end of period $ 5,544 $ 1,749 $ 7,293 June 30, 2022 Balance at beginning of period $ 6,954 $ 6,388 $ 13,342 Originations and transfers 49,695 27,009 76,704 Sales ( 45,673 ) ( 25,841 ) ( 71,514 ) Principal payoffs and amortization — ( 4 ) ( 4 ) Balance at end of period $ 10,976 $ 7,552 $ 18,528 Allowance for Credit Losses The following table details the information on the allowance for credit losses by portfolio segment as of and for the three months ended June 30, 2023 and 2022: Real Estate Commercial and Industrial Equipment Financing Agreements Total (in thousands) June 30, 2023 Balance at beginning of period $ 43,531 $ 15,333 $ 13,385 $ 72,249 Charge-offs — ( 103 ) ( 2,604 ) ( 2,707 ) Recoveries 62 555 350 967 Provision (recovery) for credit losses ( 539 ) 244 810 515 Ending balance $ 43,054 $ 16,029 $ 11,941 $ 71,024 June 30, 2022 Balance at beginning of period $ 46,355 $ 12,944 $ 12,213 $ 71,512 Charge-offs — ( 21 ) ( 585 ) ( 606 ) Recoveries 64 133 325 522 Provision (recovery) for credit losses ( 307 ) 1,219 727 1,639 Ending balance $ 46,112 $ 14,275 $ 12,680 $ 73,067 The following table details the information on the allowance for credit losses by portfolio segment as of and for the six months ended June 30, 2023 and 2022: Real Estate Commercial and Industrial Equipment Financing Agreements Total (in thousands) June 30, 2023 Balance at beginning of period $ 44,026 $ 15,267 $ 12,230 71,523 Charge-offs ( 412 ) ( 312 ) ( 4,220 ) ( 4,944 ) Recoveries 130 791 829 1,750 Provision (recovery) for credit losses ( 690 ) 283 3,102 2,695 Ending balance $ 43,054 $ 16,029 $ 11,941 $ 71,024 June 30, 2022 Balance at beginning of period $ 48,890 $ 12,418 $ 11,249 $ 72,557 Charge-offs ( 530 ) ( 79 ) ( 832 ) ( 1,441 ) Recoveries 259 451 747 1,457 Provision (recovery) for credit losses ( 2,507 ) 1,485 1,516 494 Ending balance $ 46,112 $ 14,275 $ 12,680 $ 73,067 The table below illustrates the allowance for credit losses by loan portfolio segment and each loan portfolio segment as a percentage of total loans. June 30, 2023 December 31, 2022 Allowance Amount Percentage of Total Allowance Total Loans Percentage of Total Loans Allowance Amount Percentage of Total Allowance Total Loans Percentage of Total Loans (dollars in thousands) Real estate loans: Commercial property Retail $ 10,021 14.1 % $ 1,090,739 18.3 % $ 7,872 11.0 % $ 1,023,608 17.2 % Hospitality 14,381 20.2 686,168 11.5 13,407 18.7 646,893 10.8 Office 2,668 3.8 559,611 9.4 2,293 3.2 499,946 8.4 Other 8,277 11.7 1,312,192 22.0 13,056 18.3 1,553,729 26.0 Total commercial property loans 35,347 49.8 3,648,710 61.2 36,628 51.2 3,724,176 62.4 Construction 3,017 4.2 89,613 1.5 4,022 5.7 109,205 1.8 Residential 4,690 6.6 886,982 14.9 3,376 4.7 734,472 12.4 Total real estate loans 43,054 60.6 4,625,305 77.6 44,026 61.6 4,567,853 76.6 Commercial and industrial loans 16,029 22.6 753,460 12.6 15,267 21.3 804,492 13.4 Equipment financing agreements 11,941 16.8 586,406 9.8 12,230 17.1 594,788 10.0 Total $ 71,024 100.0 % $ 5,965,171 100.0 % $ 71,523 100.0 % $ 5,967,133 100.0 % The following table represents the amortized cost basis of collateral-dependent loans by class of loans as of June 30, 2023 and December 31, 2022, for which repayment is expected to be obtained through the sale of the underlying collateral. June 30, 2023 December 31, 2022 Amortized Cost Amortized Cost (in thousands) Real estate loans: Commercial property Retail $ 1,785 $ 1,930 Hospitality — — Office — — Other (1) 1,749 256 Total commercial property loans 3,534 2,186 Residential — 508 Total real estate loans 3,534 2,694 Commercial and industrial loans 10,002 — Total $ 13,536 $ 2,694 (1) Includes mixed-use, multifamily, industrial, gas stations, faith-based facilities, medical and warehouse; all other property types represent less than one percent of total loans receivable. Loan Quality Indicators As part of the on-going monitoring of the quality of our loans portfolio, we utilize an internal loan grading system to identify credit risk and assign an appropriate grade (from 0 to 8) for each loan in our portfolio. A third-party loan review is performed at least on an annual basis. Additional adjustments are made when determined to be necessary. The loan grade definitions are as follows: Pass and Pass-Watch: Pass and Pass-Watch loans, grades (0-4), are in compliance with the Bank’s credit policy and regulatory requirements, and do not exhibit any potential or defined weaknesses as defined under “Special Mention,” “Substandard” or “Doubtful.” This category is the strongest level of the Bank’s loan grading system. It consists of all performing loans with no identified credit weaknesses. It includes cash and stock/security secured loans or other investment grade loans. Special Mention: A Special Mention loan, grade (5), has potential weaknesses that deserve management’s close attention. If not corrected, these potential weaknesses may result in deterioration of the repayment of the debt and result in a Substandard classification. Loans that have significant actual, not potential, weaknesses are considered more severely classified. Substandard: A Substandard loan, grade (6), has a well-defined weakness that jeopardizes the liquidation of the debt. A loan graded Substandard is not protected by the sound worth and paying capacity of the borrower, or of the value and type of collateral pledged. With a Substandard loan, there is a distinct possibility that the Bank will sustain some loss if the weaknesses or deficiencies are not corrected. Doubtful: A Doubtful loan, grade (7), is one that has critical weaknesses that would make the collection or liquidation of the full amount due improbable. However, there may be pending events which may work to strengthen the loan, and therefore the amount or timing of a possible loss cannot be determined at the current time. Loss: A loan classified as Loss, grade (8), is considered uncollectible and of such little value that their continuance as active bank assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this asset even though partial recovery may be possible in the future. Loans classified as Loss will be charged off in a timely manner. Under regulatory guidance, loans graded special mention or worse are considered criticized loans, and loans graded substandard or worse are considered classified loans. Loans by Vintage Year and Risk Rating Term Loans Amortized Cost Basis by Origination Year (1) 2023 2022 2021 2020 2019 Prior Revolving Total (in thousands) June 30, 2023 Real estate loans: Commercial property Risk Rating ` Pass / Pass-Watch $ 289,308 $ 1,040,840 $ 874,899 $ 583,087 $ 389,705 $ 392,812 $ 35,832 $ 3,606,483 Special Mention 5,021 — 6,879 4,358 1,441 3,658 1,700 23,057 Classified 1,258 — 4,815 — 4,910 8,187 — 19,170 Total commercial property 295,587 1,040,840 886,593 587,445 396,056 404,657 37,532 3,648,710 YTD gross charge-offs — — — 412 — — — 412 YTD net charge-offs — — — 409 — ( 122 ) — 287 Construction Risk Rating Pass / Pass-Watch 35,266 5,553 48,794 — — — — 89,613 Special Mention — — — — — — — — Classified — — — — — — — — Total construction 35,266 5,553 48,794 — — — — 89,613 YTD gross charge-offs — — — — — — — — YTD net charge-offs — — — — — — — — Residential Risk Rating Pass / Pass-Watch 190,664 386,637 163,916 12,893 224 126,749 5,395 886,478 Special Mention — — — — — — 500 500 Classified — — — — — 4 — 4 Total residential 190,664 386,637 163,916 12,893 224 126,753 5,895 886,982 YTD gross charge-offs — — — — — — — — YTD net charge-offs — — — — — ( 5 ) — ( 5 ) Total real estate loans Risk Rating Pass / Pass-Watch 515,238 1,433,030 1,087,609 595,980 389,929 519,561 41,227 4,582,574 Special Mention 5,021 — 6,879 4,358 1,441 3,658 2,200 23,557 Classified 1,258 — 4,815 — 4,910 8,191 — 19,174 Total real estate loans 521,517 1,433,030 1,099,303 600,338 396,280 531,410 43,427 4,625,305 YTD gross charge-offs — — — 412 — — — 412 YTD net charge-offs — — — 409 — ( 127 ) — 282 Commercial and industrial loans: Risk Rating Pass / Pass-Watch 124,225 183,892 90,137 35,174 13,773 11,255 261,197 719,653 Special Mention — 17,100 — 105 — 3,871 — 21,076 Classified — 887 — 84 46 232 11,482 12,731 Total commercial and industrial loans 124,225 201,879 90,137 35,363 13,819 15,358 272,679 753,460 YTD gross charge-offs — — — — 75 237 — 312 YTD net charge-offs — ( 13 ) ( 3 ) — 74 ( 536 ) ( 1 ) ( 479 ) Equipment financing agreements: Risk Rating Pass / Pass-Watch 112,990 259,432 130,303 34,592 33,393 8,761 — 579,471 Special Mention — — — — — — — — Classified 84 2,974 2,633 173 782 289 — 6,935 Total equipment financing agreements 113,074 262,406 132,936 34,765 34,175 9,050 — 586,406 YTD gross charge-offs — 1,249 1,840 287 635 209 — 4,220 YTD net charge-offs — 1,223 1,614 260 300 ( 6 ) — 3,391 Total loans receivable: Risk Rating Pass / Pass-Watch 752,453 1,876,354 1,308,049 665,746 437,095 539,577 302,424 5,881,698 Special Mention 5,021 17,100 6,879 4,463 1,441 7,529 2,200 44,633 Classified 1,342 3,861 7,448 257 5,738 8,712 11,482 38,840 Total loans receivable $ 758,816 $ 1,897,315 $ 1,322,376 $ 670,466 $ 444,274 $ 555,818 $ 316,106 $ 5,965,171 YTD gross charge-offs — 1,249 1,840 699 710 446 — 4,944 YTD net charge-offs — 1,210 1,611 669 374 ( 669 ) ( 1 ) 3,194 (1) Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision. Term Loans Amortized Cost Basis by Origination Year (1) 2022 2021 2020 2019 2018 Prior Revolving Total December 31, 2022 Real estate loans: Commercial property Risk Rating Pass / Pass-Watch $ 1,184,361 $ 901,029 $ 600,740 $ 404,786 $ 301,950 $ 207,861 $ 50,877 $ 3,651,604 Special Mention 847 13,384 5,857 7,115 — 6,080 1,701 34,984 Classified — — 412 4,312 12,304 20,560 — 37,588 Total commercial property 1,185,208 914,413 607,009 416,213 314,254 234,501 52,578 3,724,176 Construction Risk Rating Pass / Pass-Watch 41,662 67,543 — — — — — 109,205 Special Mention — — — — — — — — Classified — — — — — — — — Total construction 41,662 67,543 — — — — — 109,205 Residential Risk Rating Pass / Pass-Watch 405,975 173,236 13,102 232 731 134,766 5,422 733,464 Special Mention — — — — — — 500 500 Classified 12 — — — — 496 — 508 Total residential 405,987 173,236 13,102 232 731 135,262 5,922 734,472 Total real estate loans Risk Rating Pass / Pass-Watch 1,631,998 1,141,808 613,842 405,018 302,681 342,627 56,299 4,494,273 Special Mention 847 13,384 5,857 7,115 — 6,080 2,201 35,484 Classified 12 — 412 4,312 12,304 21,056 — 38,096 Total real estate loans 1,632,857 1,155,192 620,111 416,445 314,985 369,763 58,500 4,567,853 Commercial and industrial loans: Risk Rating Pass / Pass-Watch 368,778 100,537 39,577 24,117 7,342 12,282 205,951 758,584 Special Mention — 9,285 — — 29 102 34,113 43,529 Classified — — 171 1,097 81 391 639 2,379 Total commercial and industrial loans 368,778 109,822 39,748 25,214 7,452 12,775 240,703 804,492 Equipment financing agreements: Risk Rating Pass / Pass-Watch 305,249 165,313 46,970 52,133 17,608 1,798 — 589,071 Special Mention — — — — — — — — Classified 630 2,542 311 1,581 565 88 — 5,717 Total equipment financing agreements 305,879 167,855 47,281 53,714 18,173 1,886 — 594,788 Total loans receivable: Risk Rating Pass / Pass-Watch 2,306,025 1,407,658 700,389 481,268 327,631 356,707 262,250 5,841,928 Special Mention 847 22,669 5,857 7,115 29 6,182 36,314 79,013 Classified 642 2,542 894 6,990 12,950 21,535 639 46,192 Total loans receivable $ 2,307,514 $ 1,432,869 $ 707,140 $ 495,373 $ 340,610 $ 384,424 $ 299,203 $ 5,967,133 (1) Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision. Loans by Vintage Year and Payment Performance Term Loans Amortized Cost Basis by Origination Year (1) 2023 2022 2021 2020 2019 Prior Revolving Total (in thousands) June 30, 2023 Real estate loans: Commercial property Payment performance Performing $ 295,587 $ 1,040,840 $ 886,593 $ 587,445 $ 395,970 $ 400,623 $ 37,532 $ 3,644,590 Nonperforming — — — — 86 4,034 — 4,120 Total commercial property 295,587 1,040,840 886,593 587,445 396,056 404,657 37,532 3,648,710 YTD gross charge-offs — — — 412 — — — 412 YTD net charge-offs — — — 409 — ( 122 ) — 287 Construction Payment performance Performing 35,266 5,553 48,794 — — — — 89,613 Nonperforming — — — — — — — — Total construction 35,266 5,553 48,794 — — — — 89,613 YTD gross charge-offs — — — — — — — — YTD net charge-offs — — — — — — — — Residential Payment performance Performing 190,664 386,637 163,916 12,893 224 126,749 5,895 886,978 Nonperforming — — — — — 4 — 4 Total residential 190,664 386,637 163,916 12,893 224 126,753 5,895 886,982 YTD gross charge-offs — — — — — — — — YTD net charge-offs — — — — — ( 5 ) — ( 5 ) Total real estate loans Payment performance Performing 521,517 1,433,030 1,099,303 600,338 396,194 527,372 43,427 4,621,181 Nonperforming — — — — 86 4,038 — 4,124 Total real estate loans 521,517 1,433,030 1,099,303 600,338 396,280 531,410 43,427 4,625,305 YTD gross charge-offs — — — 412 — — — 412 YTD net charge-offs — — — 409 — ( 127 ) — 282 Commercial and industrial loans: Payment performance Performing 124,225 201,862 90,137 35,363 13,819 15,245 261,689 742,340 Nonperforming — 17 — — — 113 10,990 11,120 Total commercial and industrial loans 124,225 201,879 90,137 35,363 13,819 15,358 272,679 753,460 YTD gross charge-offs — — — — 75 237 — 312 YTD net charge-offs — ( 13 ) ( 3 ) — 74 ( 536 ) ( 1 ) ( 479 ) Equipment financing agreements: Payment performance Performing 112,990 259,432 130,303 34,592 33,393 8,761 — 579,471 Nonperforming 84 2,974 2,633 173 782 289 — 6,935 Total equipment financing agreements 113,074 262,406 132,936 34,765 34,175 9,050 — 586,406 YTD gross charge-offs — 1,249 1,840 287 635 209 — 4,220 YTD net charge-offs — 1,223 1,614 260 300 ( 6 ) — 3,391 Total loans receivable: Payment performance Performing 758,732 1,894,324 1,319,743 670,293 443,406 551,378 305,116 5,942,992 Nonperforming 84 2,991 2,633 173 868 4,440 10,990 22,179 Total loans receivable $ 758,816 $ 1,897,315 $ 1,322,376 $ 670,466 $ 444,274 $ 555,818 $ 316,106 $ 5,965,171 YTD gross charge-offs — 1,249 1,840 699 710 446 — 4,944 YTD net charge-offs — 1,210 1,611 669 374 ( 669 ) ( 1 ) 3,194 (1) Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision. Term Loans Amortized Cost Basis by Origination Year (1) 2022 2021 2020 2019 2018 Prior Revolving Total December 31, 2022 Real estate loans: Commercial property Payment performance Performing $ 1,185,208 $ 914,413 $ 606,597 $ 416,213 $ 312,324 $ 233,643 $ 52,578 $ 3,720,976 Nonperforming — — 412 — 1,930 858 3,200 Total commercial property 1,185,208 914,413 607,009 416,213 314,254 234,501 52,578 3,724,176 Construction Payment performance Performing 41,662 67,543 — — — — — 109,205 Nonperforming — — — — — — — — Total construction 41,662 67,543 — — — — — 109,205 Residential Payment performance Performing 405,975 173,236 13,102 232 731 134,766 5,922 733,964 Nonperforming 12 — — — — 496 — 508 Total residential 405,987 173,236 13,102 232 731 135,262 5,922 734,472 Total real estate loans Payment performance Performing 1,632,845 1,155,192 619,699 416,445 313,055 368,409 58,500 4,564,145 Nonperforming 12 — 412 — 1,930 1,354 — 3,708 Total real estate loans 1,632,857 1,155,192 620,111 416,445 314,985 369,763 58,500 4,567,853 Commercial and industrial loans: Payment performance Performing 368,778 109,822 39,577 25,199 7,452 12,539 240,703 804,070 Nonperforming — — 171 15 — 236 — 422 Total commercial and industrial loans 368,778 109,822 39,748 25,214 7,452 12,775 240,703 804,492 Equipment financing agreements: Payment performance Performing 305,249 165,313 46,970 52,133 17,608 1,798 — 589,071 Nonperforming 630 2,542 311 1,581 565 88 — 5,717 Total equipment financing agreements 305,879 167,855 47,281 53,714 18,173 1,886 — 594,788 Total loans receivable: Payment performance Performing 2,306,872 1,430,327 706,246 493,777 338,115 382,746 299,203 5,957,286 Nonperforming 642 2,542 894 1,596 2,495 1,678 — 9,847 Total loans receivable $ 2,307,514 $ 1,432,869 $ 707,140 $ 495,373 $ 340,610 $ 384,424 $ 299,203 $ 5,967,133 (1) Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision. The following is an aging analysis of loans, including loans on nonaccrual status, disaggregated by loan class, as of the dates indicated: 30-59 60-89 90 Days Total Current Total (in thousands) June 30, 2023 Real estate loans: Commercial property Retail $ — $ — $ — $ — $ 1,090,739 $ 1,090,739 Hospitality — 49 — 49 686,119 686,168 Office — — — — 559,611 559,611 Other 24 573 1,499 2,096 1,310,096 1,312,192 Total commercial property loans 24 622 1,499 2,145 3,646,565 3,648,710 Construction — — — — 89,613 89,613 Residential 1,036 — — 1,036 885,946 886,982 Total real estate loans 1,060 622 1,499 3,181 4,622,124 4,625,305 Commercial and industrial loans 5,113 10,066 — 15,179 738,281 753,460 Equipment financing agreements 5,631 2,284 3,434 11,349 575,057 586,406 Total loans receivable $ 11,804 $ 12,972 $ 4,933 $ 29,709 $ 5,935,462 $ 5,965,171 December 31, 2022 Real estate loans: Commercial property Retail $ — $ — $ — $ — $ 1,023,608 $ 1,023,608 Hospitality — — — — 646,893 646,893 Office — — — — 499,946 499,946 Other — 494 — 494 1,553,235 1,553,729 Total commercial property loans — 494 — 494 3,723,682 3,724,176 Construction — — — — 109,205 109,205 Residential 313 804 7 1,124 733,348 734,472 Total real estate loans 313 1,298 7 1,618 4,566,235 4,567,853 Commercial and industrial loans 77 79 — 156 804,336 804,492 Equipment financing agreements 5,825 1,271 2,949 10,045 584,743 594,788 Total loans receivable $ 6,215 $ 2,648 $ 2,956 $ 11,819 $ 5,955,314 $ 5,967,133 At June 30, 2023 and December 31, 2022 , there were no loans 90 days or more past due and still accruing interest. Nonaccrual Loans and Nonperforming Assets The following table represents the amortized cost basis of loans on nonaccrual status and loans past due 90 days and still accruing as of June 30, 2023 and December 31, 2022. June 30, 2023 Nonaccrual Loans Nonaccrual Loans Loans Total (in thousands) Real estate loans: Commercial property Retail $ 2,021 $ 169 $ — $ 2,190 Hospitality — 49 — 49 Office — — — — Other 1,749 132 — 1,881 Total commercial property loans 3,770 350 — 4,120 Residential — 4 — 4 Total real estate loans 3,770 354 — 4,124 Commercial and industrial loans — 11,120 — 11,120 Equipment financing agreements 446 6,489 — 6,935 Total $ 4,216 $ 17,963 $ — $ 22,179 December 31, 2022 Nonaccrual Loans Nonaccrual Loans Loans Total (in thousands) Real estate loans: Commercial property Retail $ 1,929 $ — $ — $ 1,929 Office — — — — Other 540 731 — 1,271 Total commercial property loans 2,469 731 — 3,200 Residential 508 — — 508 Total real estate loans 2,977 731 — 3,708 Commercial and industrial loans — 422 — 422 Equipment financing agreements 215 5,501 — 5,716 Total $ 3,192 $ 6,654 $ — $ 9,846 The Company recognized $ 30,000 and $ 9,000 of interest income on nonaccrual loans for the three months ended June 30, 2023 and 2022, respectively. Interest income recognized on nonaccrual loans for the six months ended June 30, 2023 and 2022 was $ 134,000 and $ 36,000 , respectively. The following table details nonperforming assets as of the dates indicated: June 30, 2023 December 31, 2022 (in thousands) Nonaccrual loans $ 22,179 $ 9,846 Loans receivable 90 days or more past due and still accruing — — Total nonperforming loans receivable 22,179 9,846 Other real estate owned ("OREO") 117 117 Total nonperforming assets $ 22,296 $ 9,963 OREO of $ 0.1 million is included in prepaid expenses and other assets in the accompanying Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022. Loan Modifications No loans were modified during the three and six months ended June 30, 2023 or 2022 . |