Loans | Loans The Company’s loans, net of unearned income, consisted of the following as of December 31 of the years indicated. (dollars in thousands) 2023 2022 Real estate loans: One- to four-family first mortgage $ 433,401 $ 389,616 Home equity loans and lines 68,977 61,863 Commercial real estate 1,192,691 1,152,537 Construction and land 340,724 313,175 Multi-family residential 107,263 100,588 Total real estate loans 2,143,056 2,017,779 Other loans: Commercial and industrial 405,659 377,894 Consumer 32,923 35,077 Total other loans 438,582 412,971 Total loans $ 2,581,638 $ 2,430,750 The net discount on the Company’s acquired loans was $4,340,000 and $6,866,000 at December 31, 2023 and 2022, respectively. In addition, loan balances as of December 31, 2023 and 2022 are reported net of unearned income of $5,321,000 and $4,580,000, respectively. Unearned income at December 31, 2023 and December 31, 2022 included $60,000 and $94,000 of deferred lender fees related to PPP loans, respectively. The total recorded investment in PPP loans was $5,532,000 and $6,692,000 at December 31, 2023 and 2022, respectively, which is included in commercial and industrial loans. Accrued interest receivable on the Company's loans was $11,986,000 and $9,520,000 at December 31, 2023 and 2022, respectively, and is excluded from the estimate of the ACL. These amounts are recorded in accrued interest receivable and other assets on the Consolidated Statements of Financial Condition. A summary of activity in the ACL for the years ended December 31, 2023, 2022 and 2021 follows. For the Year Ended December 31, 2023 (dollars in thousands) Beginning Balance Charge-offs Recoveries Provision (Reversal) Ending Balance Allowance for credit losses: One- to four-family first mortgage $ 2,883 $ (12) $ 43 $ 341 $ 3,255 Home equity loans and lines 624 — 6 58 688 Commercial real estate 13,814 (29) 100 920 14,805 Construction and land 4,680 — — 735 5,415 Multi-family residential 572 — — (98) 474 Commercial and industrial 6,024 (255) 180 217 6,166 Consumer 702 (175) 39 168 734 Total allowance for loan losses $ 29,299 $ (471) $ 368 $ 2,341 $ 31,537 Unfunded lending commitments 2,093 — — 501 2,594 Total allowance for credit losses $ 31,392 $ (471) $ 368 $ 2,842 $ 34,131 For the Year Ended December 31, 2022 (dollars in thousands) Beginning Balance Allowance for Acquired PCD Loans Charge-offs Recoveries Provision (Reversal) Ending Balance Allowance for credit losses: One- to four-family first mortgage $ 1,944 $ — $ (80) $ 39 $ 980 $ 2,883 Home equity loans and lines 508 — — 14 102 624 Commercial real estate 10,454 1,220 (270) — 2,410 13,814 Construction and land 3,572 — — — 1,108 4,680 Multi-family residential 457 — — — 115 572 Commercial and industrial 3,520 195 (792) 509 2,592 6,024 Consumer 634 — (256) 142 182 702 Total allowance for loan losses $ 21,089 $ 1,415 $ (1,398) $ 704 $ 7,489 $ 29,299 Unfunded lending commitments 1,815 — — — 278 2,093 Total allowance for credit losses $ 22,904 $ 1,415 $ (1,398) $ 704 $ 7,767 $ 31,392 For the Year Ended December 31, 2021 (dollars in thousands) Beginning Balance Charge-offs Recoveries Provision (Reversal) Ending Balance Allowance for credit losses: One- to four-family first mortgage $ 3,065 $ (176) $ 45 $ (990) $ 1,944 Home equity loans and lines 676 (6) 25 (187) 508 Commercial real estate 18,851 (1,337) — (7,060) 10,454 Construction and land 4,155 — 63 (646) 3,572 Multi-family residential 1,077 — — (620) 457 Commercial and industrial 4,276 (599) 313 (470) 3,520 Consumer 863 (187) 146 (188) 634 Total allowance for loan losses $ 32,963 $ (2,305) $ 592 $ (10,161) $ 21,089 Unfunded lending commitments 1,425 — — 390 1,815 Total allowance for credit losses $ 34,388 $ (2,305) $ 592 $ (9,771) $ 22,904 The ACL, which includes the ALL and the ACL on unfunded lending commitments, and recorded investment in loans as of the dates indicated are as follows. As of December 31, 2023 (dollars in thousands) Collectively Evaluated Individually Evaluated Total Allowance for credit losses: One- to four-family first mortgage $ 3,255 $ — $ 3,255 Home equity loans and lines 688 — 688 Commercial real estate 14,604 201 14,805 Construction and land 5,292 123 5,415 Multi-family residential 474 — 474 Commercial and industrial 6,071 95 6,166 Consumer 734 — 734 Total allowance for loan losses $ 31,118 $ 419 $ 31,537 Unfunded lending commitments (1) $ 2,594 $ — $ 2,594 Total allowance for credit losses $ 33,712 $ 419 $ 34,131 As of December 31, 2023 (dollars in thousands) Collectively Evaluated Individually Evaluated (2) Total Loans: One- to four-family first mortgage $ 433,401 $ — $ 433,401 Home equity loans and lines 68,977 — 68,977 Commercial real estate 1,188,734 3,957 1,192,691 Construction and land 340,577 147 340,724 Multi-family residential 107,263 — 107,263 Commercial and industrial 405,547 112 405,659 Consumer 32,923 — 32,923 Total loans $ 2,577,422 $ 4,216 $ 2,581,638 As of December 31, 2022 (dollars in thousands) Collectively Evaluated Individually Evaluated Total Allowance for credit losses: One- to four-family first mortgage $ 2,883 $ — $ 2,883 Home equity loans and lines 624 — 624 Commercial real estate 13,264 550 13,814 Construction and land 4,680 — 4,680 Multi-family residential 572 — 572 Commercial and industrial 5,853 171 6,024 Consumer 702 — 702 Total allowance for loan losses $ 28,578 $ 721 $ 29,299 Unfunded lending commitments (3) $ 2,093 $ — $ 2,093 Total allowance for credit losses $ 30,671 $ 721 $ 31,392 As of December 31, 2022 (dollars in thousands) Collectively Evaluated Individually Evaluated (2) Total Loans: One- to four-family first mortgage $ 389,616 $ — $ 389,616 Home equity loans and lines 61,863 — 61,863 Commercial real estate 1,147,794 4,743 1,152,537 Construction and land 313,175 — 313,175 Multi-family residential 100,588 — 100,588 Commercial and industrial 377,690 204 377,894 Consumer 34,991 86 35,077 Total loans $ 2,425,717 $ 5,033 $ 2,430,750 (1) At December 31, 2023, $2.6 million of the ACL related to noncancellable unfunded lending commitments of $534.7 million. The ACL on unfunded lending commitments is recorded within accrued interest payable and other liabilities on the Consolidated Statements of Financial Condition. (2) PCD loans individually evaluated totaled $1.4 million and $1.5 million at December 31, 2023 and December 31, 2022, respectively. (3) At December 31, 2022, $2.1 million of the ACL related to noncancellable unfunded lending commitments of $520.7 million. The ACL on unfunded lending commitments is recorded within accrued interest payable and other liabilities on the Consolidated Statements of Financial Condition. Although the Company has a diversified loan portfolio, a substantial portion of the loan portfolio is collateralized by improved and unimproved real estate and is dependent, in part, on values in the real estate market. The following table presents the Company’s loan portfolio by credit quality classification and origination year as of December 31, 2023. Term Loans by Origination Year (dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Converted to Term Loans Total One- to four-family first mortgage: Pass $ 94,465 $ 106,417 $ 72,594 $ 33,588 $ 27,677 $ 91,706 $ 3,059 $ 458 $ 429,964 Special Mention 149 497 188 — — 34 — — 868 Substandard — 165 117 306 60 1,921 — — 2,569 Doubtful — — — — — — — — — Total one- to four-family first mortgages $ 94,614 $ 107,079 $ 72,899 $ 33,894 $ 27,737 $ 93,661 $ 3,059 $ 458 $ 433,401 Current period gross charge-offs $ — $ — $ — $ — $ — $ 12 $ — $ — $ 12 Home equity loans and lines: Pass $ 1,864 $ 1,652 $ 1,231 $ 760 $ 1,117 $ 3,138 $ 57,768 $ 1,240 $ 68,770 Special Mention — — — — — — — — — Substandard — — — — — 150 29 28 207 Doubtful — — — — — — — — — Total home equity loans and lines $ 1,864 $ 1,652 $ 1,231 $ 760 $ 1,117 $ 3,288 $ 57,797 $ 1,268 $ 68,977 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate: Pass $ 161,755 $ 292,494 $ 252,109 $ 184,935 $ 137,154 $ 104,533 $ 44,225 $ 855 $ 1,178,060 Special Mention — — — — — — — — — Substandard — 16 1,441 2,652 5,490 5,032 — — 14,631 Doubtful — — — — — — — — — Total commercial real estate loans $ 161,755 $ 292,510 $ 253,550 $ 187,587 $ 142,644 $ 109,565 $ 44,225 $ 855 $ 1,192,691 Current period gross charge-offs $ — $ — $ — $ — $ — $ 29 $ — $ — $ 29 Construction and land: Pass $ 121,389 $ 150,667 $ 33,247 $ 6,641 $ 7,672 $ 4,567 $ 5,439 $ — $ 329,622 Term Loans by Origination Year (dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Converted to Term Loans Total Special Mention 929 164 4,635 146 — — — — 5,874 Substandard — 609 528 — — 44 4,047 — 5,228 Doubtful — — — — — — — — — Total construction and land loans $ 122,318 $ 151,440 $ 38,410 $ 6,787 $ 7,672 $ 4,611 $ 9,486 $ — $ 340,724 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Multi-family residential: Pass $ 14,907 $ 37,228 $ 11,843 $ 21,558 $ 12,548 $ 3,213 $ 2,463 $ — $ 103,760 Special Mention — — — — — — — — — Substandard — — — — — 3,503 — — 3,503 Doubtful — — — — — — — — — Total multi-family residential loans $ 14,907 $ 37,228 $ 11,843 $ 21,558 $ 12,548 $ 6,716 $ 2,463 $ — $ 107,263 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial and industrial: Pass $ 73,674 $ 79,886 $ 30,412 $ 10,674 $ 4,954 $ 3,386 $ 191,946 $ 7,800 $ 402,732 Special Mention — 784 — 264 — 138 — — 1,186 Substandard 1,389 38 54 7 2 100 129 22 1,741 Doubtful — — — — — — — — — Total commercial and industrial loans $ 75,063 $ 80,708 $ 30,466 $ 10,945 $ 4,956 $ 3,624 $ 192,075 $ 7,822 $ 405,659 Current period gross charge-offs $ — $ — $ — $ 124 $ 7 $ — $ 124 $ — $ 255 Consumer: Pass $ 5,941 $ 5,734 $ 872 $ 887 $ 359 $ 10,698 $ 8,068 $ 75 $ 32,634 Special Mention — — — — — — — — — Substandard — 13 7 — 7 262 — — 289 Doubtful — — — — — — — — — Total consumer loans $ 5,941 $ 5,747 $ 879 $ 887 $ 366 $ 10,960 $ 8,068 $ 75 $ 32,923 Current period gross charge-offs $ 3 $ 34 $ 3 $ 6 $ — $ 4 $ 125 $ — $ 175 Total loans: Pass $ 473,995 $ 674,078 $ 402,308 $ 259,043 $ 191,481 $ 221,241 $ 312,968 $ 10,428 $ 2,545,542 Special Mention 1,078 1,445 4,823 410 — 172 — — 7,928 Substandard 1,389 841 2,147 2,965 5,559 11,012 4,205 50 28,168 Doubtful — — — — — — — — — Total loans $ 476,462 $ 676,364 $ 409,278 $ 262,418 $ 197,040 $ 232,425 $ 317,173 $ 10,478 $ 2,581,638 Current period gross charge-offs $ 3 $ 34 $ 3 $ 130 $ 7 $ 45 $ 249 $ — $ 471 The following table presents the Company’s loan portfolio by credit quality classification and origination year as of December 31, 2022. Term Loans by Origination Year (dollars in thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Converted to Term Loans Total One- to four-family first mortgage: Pass $ 107,546 $ 78,744 $ 37,876 $ 34,114 $ 26,455 $ 94,729 $ 5,387 $ 348 $ 385,199 Special Mention 150 189 — — — 355 — 500 1,194 Substandard 272 56 368 145 372 2,010 — — 3,223 Doubtful — — — — — — — — — Total one- to four-family first mortgages $ 107,968 $ 78,989 $ 38,244 $ 34,259 $ 26,827 $ 97,094 $ 5,387 $ 848 $ 389,616 Home equity loans and lines: Pass $ 1,898 $ 1,453 $ 783 $ 1,142 $ 604 $ 3,453 $ 51,502 $ 995 $ 61,830 Special Mention — — — — — — — — — Substandard — — — — — 33 — — 33 Doubtful — — — — — — — — — Total home equity loans and lines $ 1,898 $ 1,453 $ 783 $ 1,142 $ 604 $ 3,486 $ 51,502 $ 995 $ 61,863 Commercial real estate: Pass $ 292,894 $ 279,397 $ 210,983 $ 159,169 $ 64,554 $ 95,083 $ 35,918 $ 586 $ 1,138,584 Special Mention — 179 345 — — — — — 524 Substandard 97 — 167 5,579 294 7,292 — — 13,429 Doubtful — — — — — — — — — Total commercial real estate loans $ 292,991 $ 279,576 $ 211,495 $ 164,748 $ 64,848 $ 102,375 $ 35,918 $ 586 $ 1,152,537 Construction and land: Pass $ 170,744 $ 101,321 $ 19,620 $ 8,912 $ 2,534 $ 2,716 $ 4,434 $ 1,727 $ 312,008 Special Mention — 520 — — — — — — 520 Substandard 417 — 152 — — 78 — — 647 Doubtful — — — — — — — — — Total construction and land loans $ 171,161 $ 101,841 $ 19,772 $ 8,912 $ 2,534 $ 2,794 $ 4,434 $ 1,727 $ 313,175 Multi-family residential: Pass $ 33,822 $ 15,775 $ 25,661 $ 13,070 $ 2,241 $ 2,491 $ 1,302 $ 2,840 $ 97,202 Special Mention — — — — 3,312 — — — 3,312 Substandard — — — — 74 — — — 74 Doubtful — — — — — — — — — Total multi-family residential loans $ 33,822 $ 15,775 $ 25,661 $ 13,070 $ 5,627 $ 2,491 $ 1,302 $ 2,840 $ 100,588 Commercial and industrial: Pass $ 108,464 $ 50,850 $ 16,043 $ 8,599 $ 11,203 $ 2,759 $ 174,145 $ 712 $ 372,775 Special Mention 338 — — — 7 — 1,188 — 1,533 Substandard 590 — 2,317 8 — 293 328 50 3,586 Doubtful — — — — — — — — — Total commercial and industrial loans $ 109,392 $ 50,850 $ 18,360 $ 8,607 $ 11,210 $ 3,052 $ 175,661 $ 762 $ 377,894 Consumer: Pass $ 10,012 $ 2,048 $ 1,577 $ 536 $ 136 $ 12,785 $ 7,420 $ 29 $ 34,543 Special Mention — — — — — — — — — Substandard 9 298 — — — 227 — — 534 Doubtful — — — — — — — — — Total consumer loans $ 10,021 $ 2,346 $ 1,577 $ 536 $ 136 $ 13,012 $ 7,420 $ 29 $ 35,077 Total loans: Pass $ 725,380 $ 529,588 $ 312,543 $ 225,542 $ 107,727 $ 214,016 $ 280,108 $ 7,237 $ 2,402,141 Special Mention 488 888 345 — 3,319 355 1,188 500 7,083 Substandard 1,385 354 3,004 5,732 740 9,933 328 50 21,526 Doubtful — — — — — — — — — Total loans $ 727,253 $ 530,830 $ 315,892 $ 231,274 $ 111,786 $ 224,304 $ 281,624 $ 7,787 $ 2,430,750 Age analysis of past due loans, as of the dates indicated, is as follows. December 31, 2023 (dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Past Due Total Past Due Current Loans Total Loans Originated loans: Real estate loans: One- to four-family first mortgage $ 2,867 $ 978 $ 331 $ 4,176 $ 354,694 $ 358,870 Home equity loans and lines 143 — 35 178 61,105 61,283 Commercial real estate 112 769 — 881 922,843 923,724 Construction and land 432 1 1,136 1,569 312,710 314,279 Multi-family residential — — — — 103,598 103,598 Total real estate loans 3,554 1,748 1,502 6,804 1,754,950 1,761,754 Other loans: Commercial and industrial 325 11 189 525 376,739 377,264 Consumer 404 131 — 535 29,947 30,482 Total other loans 729 142 189 1,060 406,686 407,746 Total originated loans $ 4,283 $ 1,890 $ 1,691 $ 7,864 $ 2,161,636 $ 2,169,500 Acquired loans: Real estate loans: One- to four-family first mortgage $ 1,543 $ 497 $ 467 $ 2,507 $ 72,024 $ 74,531 Home equity loans and lines 19 1 — 20 7,674 7,694 Commercial real estate — 2,645 — 2,645 266,322 268,967 Construction and land — — 15 15 26,430 26,445 Multi-family residential — — — — 3,665 3,665 Total real estate loans 1,562 3,143 482 5,187 376,115 381,302 Other loans: Commercial and industrial 271 — 32 303 28,092 28,395 Consumer 12 12 55 79 2,362 2,441 Total other loans 283 12 87 382 30,454 30,836 Total acquired loans $ 1,845 $ 3,155 $ 569 $ 5,569 $ 406,569 $ 412,138 Total loans: Real estate loans: One- to four-family first mortgage $ 4,410 $ 1,475 $ 798 $ 6,683 $ 426,718 $ 433,401 Home equity loans and lines 162 1 35 198 68,779 68,977 Commercial real estate 112 3,414 — 3,526 1,189,165 1,192,691 Construction and land 432 1 1,151 1,584 339,140 340,724 Multi-family residential — — — — 107,263 107,263 Total real estate loans 5,116 4,891 1,984 11,991 2,131,065 2,143,056 Other loans: Commercial and industrial 596 11 221 828 404,831 405,659 Consumer 416 143 55 614 32,309 32,923 Total other loans 1,012 154 276 1,442 437,140 438,582 Total loans $ 6,128 $ 5,045 $ 2,260 $ 13,433 $ 2,568,205 $ 2,581,638 December 31, 2022 (dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Past Due Total Past Due Current Loans Total Loans Originated loans: Real estate loans: One- to four-family first mortgage $ 490 $ 147 $ 646 $ 1,283 $ 298,547 $ 299,830 Home equity loans and lines 40 — — 40 52,950 52,990 Commercial real estate 3,210 179 27 3,416 853,096 856,512 Construction and land 345 160 147 652 284,740 285,392 Multi-family residential — — — — 96,400 96,400 Total real estate loans 4,085 486 820 5,391 1,585,733 1,591,124 Other loans: Commercial and industrial 152 — 210 362 338,418 338,780 Consumer 264 7 191 462 31,059 31,521 Total other loans 416 7 401 824 369,477 370,301 Total originated loans $ 4,501 $ 493 $ 1,221 $ 6,215 $ 1,955,210 $ 1,961,425 Acquired loans: Real estate loans: One- to four-family first mortgage $ 1,591 $ 136 $ 519 $ 2,246 $ 87,540 $ 89,786 Home equity loans and lines 116 — 1 117 8,756 8,873 Commercial real estate 294 — 566 860 295,165 296,025 Construction and land — — 132 132 27,651 27,783 Multi-family residential — — — — 4,188 4,188 Total real estate loans 2,001 136 1,218 3,355 423,300 426,655 Other loans: Commercial and industrial — 225 38 263 38,851 39,114 Consumer 41 3 21 65 3,491 3,556 Total other loans 41 228 59 328 42,342 42,670 Total acquired loans $ 2,042 $ 364 $ 1,277 $ 3,683 $ 465,642 $ 469,325 Total loans: Real estate loans: One- to four-family first mortgage $ 2,081 $ 283 $ 1,165 $ 3,529 $ 386,087 $ 389,616 Home equity loans and lines 156 — 1 157 61,706 61,863 Commercial real estate 3,504 179 593 4,276 1,148,261 1,152,537 Construction and land 345 160 279 784 312,391 313,175 Multi-family residential — — — — 100,588 100,588 Total real estate loans 6,086 622 2,038 8,746 2,009,033 2,017,779 Other loans: Commercial and industrial 152 225 248 625 377,269 377,894 Consumer 305 10 212 527 34,550 35,077 Total other loans 457 235 460 1,152 411,819 412,971 Total loans $ 6,543 $ 857 $ 2,498 $ 9,898 $ 2,420,852 $ 2,430,750 Loans greater than 90 days past due and accruing interest were $0 and $2,000 at December 31, 2023 and December 31, 2022, respectively. The Company reviews its significant nonaccrual loans (i.e., loans with balances of $500,000 or greater) for specific impairment in accordance with its allowance for credit loss methodology. If it is determined that it is probable that all amounts due will not be collected when other credit quality indicators are considered, the loan is considered impaired and the Company individually evaluates those loans to determine the expected credit losses. The following table summarizes information pertaining to nonaccrual loans as of dates indicated. December 31, 2023 December 31, 2022 (dollars in thousands) Total Without Related Allowance Total Without Related Allowance Nonaccrual loans (1) : One- to four-family first mortgage $ 1,600 $ — $ 2,300 $ — Home equity loans and lines 208 — 34 — Commercial real estate 5,203 2,548 6,945 2,914 Construction and land 1,181 — 315 — Multi-family residential — — — — Commercial and industrial 331 — 378 13 Consumer 291 — 541 86 Total $ 8,814 $ 2,548 $ 10,513 $ 3,013 (1) Nonaccrual acquired loans include PCD loans of $1,410,000 and $1,530,000 at December 31, 2023 and December 31, 2022, respectively. All interest accrued but not received for loans placed on nonaccrual status is reversed against interest income. All payments received while on nonaccrual status are applied against the principal balance of nonaccrual loans. The Company does not recognize interest income while loans are on nonaccrual status. As of December 31, 2023, the Company was not committed to lend additional funds to any customer whose loan was individually evaluated for impairment. Collateral Dependent Loans The Company held loans that were individually evaluated for impairment at December 31, 2023 and 2022 for which the repayments, on the basis of our assessment at the reporting date, were expected to be provided substantially through the operation or sale of the collateral and the borrower was experiencing financial difficulty. The ACL for these collateral-dependent loans is primarily based on the fair value of the underlying collateral at the reporting date. The following describes the types of collateral that secure collateral dependent loans: • One- to four-family first mortgages are primarily secured by first liens on residential real estate. • Home equity loans and lines are primarily secured by first and junior liens on residential real estate. • Commercial real estate loans are primarily secured by office and industrial buildings, warehouses, retail shopping facilities and various special purpose properties, including hotels and restaurants. • Construction and land loans are primarily secured by residential and commercial properties, which are under construction and/or redevelopment, and by raw land. • Commercial and industrial loans considered collateral dependent are primarily secured by accounts receivable, inventory and equipment. The table below summarizes collateral dependent loans and the related ACL as of the periods indicated for which the borrower was experiencing financial difficulty. December 31, 2023 December 31, 2022 (dollars in thousands) Loans ACL Loans ACL One- to four-family first mortgage $ — $ — $ — $ — Home equity loans and lines — — — — Commercial real estate 3,957 201 4,743 550 Construction and land 147 123 — — Multi-family residential — — — — Commercial and industrial 112 95 204 171 Consumer — — 86 — Total $ 4,216 $ 419 $ 5,033 $ 721 Foreclosed Assets and ORE Foreclosed assets and ORE include real property and other assets that have been acquired as a result of foreclosure, and real property no longer used in the Bank's business. Foreclosed assets and ORE totaled $1,575,000 and $461,000 at December 31, 2023 and December 31, 2022, respectively. These amounts are recorded in accrued interest receivable and other assets on the Consolidated Statements of Financial Condition. The carrying amount of foreclosed residential real estate properties held at December 31, 2023 and December 31, 2022 totaled $115,000 and $231,000, respectively. Loans secured by single family residential real estate that were in the process of foreclosure at December 31, 2023 and December 31, 2022 totaled $517,000 and $179,000, respectively. Loan Modifications Made to Borrowers Experiencing Financial Difficulty Occasionally, the Company modifies loans to borrowers in financial distress by providing certain concessions, such as principal forgiveness, term extension, an other-than-insignificant payment delay, interest only for a specified period of time, an interest rate reduction, or a combination of such concessions. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses. 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 charged-off. The balance of loan modifications, segregated by type of modification, to borrowers experiencing financial difficulty are set forth in the table below. (dollars in thousands) Payment Deferral Principal Forgiveness Term Extension Interest Rate Reduction Combination Term Extension and Principal Forgiveness Combination Term Extension and Interest Rate Reduction Percent of Total Class of Loans December 31, 2023 One-to four-family first mortgage $ — $ — $ 1,055 $ — $ — $ — 0.2 % Home equity loans and lines 60 — — — — — 0.1 Commercial real estate 280 — 1,102 — — — 0.1 Construction and land — — 31 — — — — Multi-family residential — — 3,437 — — — 3.2 Commercial and industrial — — 1,389 — — — 0.3 Consumer — — — — — — — Total $ 340 $ — $ 7,014 $ — $ — $ — 0.3 % During the year ended December 31, 2023, no loan experienced a default subsequent to being granted a payment deferral or term extension. Default is defined as movement to past due 90 days, foreclosure or charge-off, whichever occurs first. The following table details the financial impacts of loan modifications made to borrowers experiencing financial difficulty for the periods presented. December 31, 2023 Payment Deferral (dollars in thousands) Term Extensions ( in months ) One-to four-family first mortgage $— 24 Home equity loans and lines 3 0 Commercial real estate 9 12 Construction and land — 12 Multi-family residential — 2 Commercial and industrial — 10 Consumer — 0 The table below provides an aging analysis of loans as of December 31, 2023 granted a modification to borrowers experiencing financial difficulty that were modified on or after January 1, 2023, the date the Company adopted ASU 2022-02. (dollars in thousands) 30-89 Days Past Due 90+ Days Past Due Nonaccrual Current Total December 31, 2023 One-to four-family first mortgage $ — $ — $ 221 $ 834 $ 1,055 Home equity loans and lines — — 60 — 60 Commercial real estate — — 1,102 280 1,382 Construction and land — — 31 — 31 Multi-family residential — — — 3,437 3,437 Commercial and industrial — — — 1,389 1,389 Consumer — — — — — Total $ — $ — $ 1,414 $ 5,940 $ 7,354 The loan modifications reported in the table above did not significantly impact the Company's allowance for loan losses during 2023. Eleven loans were modified during the year ended December 31, 2022 and they did not default within twelve months of modification. |