Allowance for Credit Losses | 5. ALLOWANCE FOR CREDIT LOSSES The segments of the Company’s loan portfolio are disaggregated to a level that allows management to monitor risk and performance. The loan segments used are consistent with the internal reports evaluated by the Company’s management and Board of Directors to monitor risk and performance within various segments of its loan portfolio and, therefore, no further disaggregation is considered necessary. The Company’s loan portfolio consists primarily of real estate loans on commercial and residential property. The portfolio also includes agricultural loans, commercial loans, municipal loans, and consumer loans. The Company’s primary lending activity is the origination of commercial loans extended to small and mid-sized commercial and industrial entities. Commercial loans are primarily underwritten on the basis of the borrowers’ ability to service such debt from income. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. As a general practice, the Company takes as collateral a security interest in any equipment, or other chattel, although loans may also be made on an unsecured basis. Collateralized working capital loans typically are secured by short-term assets whereas long-term loans are primarily secured by long-term assets. Construction and Land loans are to finance the construction of owner-occupied and income producing properties. These loans are categorized within commercial or one-to-four family residential loans based upon the underlying collateral and intended use following the completion of the construction period. Real estate development and construction loans are approved based on an analysis of the borrower and guarantor, the viability of the project and on an acceptable percentage of the appraised value of the property securing the loan. Construction loan funds are disbursed periodically based on the percentage of construction or development completed. The Company carefully monitors these loans with on-site inspections and requires the receipt of lien waivers on funds advanced. The Company considers the market conditions and feasibility of proposed projects, the financial condition and reputation of the borrower and guarantors, the amount of the borrower’s equity in the project, independent appraisals, cost estimates and pre-construction sale information. The Company also makes loans on occasion for the purchase of land for future development by the borrower. Land loans are extended for the future development for either commercial or residential use by the borrower. The Company carefully analyzes the intended use of the property and the viability thereof. The Company’s commercial real estate loans consist of mortgage loans secured by nonresidential real estate, such as by apartment buildings, small office buildings, and owner-occupied properties. Commercial real estate loans are secured by the subject property and are underwritten based on loan to value limits, cash flow coverage and general creditworthiness of the obligors. These loans tend to involve larger loan balances and their repayment is typically dependent upon the successful operation and management of the underlying real estate. Residential real estate loans are underwritten based on the borrower’s repayment capacity and source, value of the underlying property, credit history and stability. These loans are secured by a first or second mortgage on the borrower’s principal residence or their second/vacation home (excluding investment/rental property). In addition to the main types of loans discussed above, the Company also originates agricultural loans, consumer loans, and municipal loans. The agricultural loan portfolio consists of loans to local farmers and agricultural businesses that are generally secured by farmland and equipment. The consumer loan portfolio consists of lending in the form of home equity loans secured by financed property and personal consumer loans, which may be secured or unsecured. The municipal loan portfolio consists of loans to qualified local municipalities, which are generally supported by the taxing authority of the borrowing municipality, and is frequently secured by collateral. Management systematically monitors the loan portfolio and the appropriateness of the allowance for credit losses on a quarterly basis to provide for expected losses inherent in the portfolio. For segments determined by discounted cash flow analysis, the Company's estimate of future economic conditions utilized in its estimate is primarily dependent on the Federal Open Market Committee's forecasts related to Real Gross Domestic Product and Unemployment rate. For segments determined by the remaining life method, an average loss rate is generally calculated based on peer losses and applied to the future outstanding loan balances at quarter end. Certain qualitative factors are then added to the historical allocation percentage to get the adjusted factor to be applied to non-classified loans. The following qualitative factors are analyzed for each portfolio segment: • Levels of and trends in delinquencies • Trends in volume and terms • Changes in collateral • Changes in management and lending staff • Economic trends • Concentrations of credit • Changes in lending policies • External factors • Changes in underwriting process • Trends in credit quality ratings These qualitative factors are reviewed each quarter and adjusted based upon relevant changes within the portfolio. The total allowance reflects management’s estimate of credit losses inherent in the loan portfolio at the Consolidated Balance Sheet date. The Company considers the allowance for credit losses adequate to cover loan losses inherent in the loan portfolio at June 30, 2024 and December 31, 2023. Accrued interest receivable on loans totaled $ 9,304 at June 30, 2024 and was reported within accrued interest receivable and other assets on the consolidated balance sheets and is excluded from the estimate of credit losses. The following tables summarize the activity in the allowance for credit losses by loan segment for the three and six months ended June 30, 2024 and 2023. Beginning balance Charge-offs Recoveries Allowance for Credit Losses on PCD Acquired Loans Provision for credit losses Ending balance (In Thousands) For the Three Months Ended June 30, 2024 Allowance for credit losses: Agriculture and farmland $ 12 $ — $ — $ — $ — $ 12 Construction 1,523 — 2 — 316 1,841 Commercial & industrial 2,962 ( 4 ) 6 — 471 3,435 Commercial real estate Multifamily 1,592 — 2 — 320 1,914 Owner occupied 5,738 — — — 143 5,881 Non-owner occupied 6,099 — 4 2,300 ( 377 ) 8,026 Residential real estate First liens 4,675 — 6 — ( 634 ) 4,047 Second liens and lines of credit 1,071 — 3 — ( 97 ) 977 Municipal 68 — — — ( 4 ) 64 Consumer 102 ( 2 ) 3 — ( 12 ) 91 Total $ 23,842 $ ( 6 ) $ 26 $ 2,300 $ 126 $ 26,288 Beginning balance Charge-offs Recoveries Provision for credit losses Ending balance (In Thousands) For the Three Months Ended June 30, 2023 Allowance for credit losses: Agriculture and farmland $ 208 $ — $ — $ 1 $ 209 Construction 813 — — ( 85 ) 728 Commercial & industrial 930 — — ( 201 ) 729 Commercial real estate Multifamily 730 — — ( 57 ) 673 Owner occupied 1,593 — — ( 34 ) 1,559 Non-owner occupied 4,315 — 12 23 4,350 Residential real estate — — First liens 1,508 — 27 ( 138 ) 1,397 Second liens and lines of credit 402 — 58 ( 77 ) 383 Municipal 7 — — — 7 Consumer 20 — — 2 22 Unallocated — — — 171 171 Total $ 10,526 $ — $ 97 $ ( 395 ) $ 10,228 Beginning balance Charge-offs Recoveries Allowance for Credit Losses on PCD Acquired Loans Provision for credit losses Ending balance (In Thousands) For the Six Months Ended June 30, 2024 Allowance for credit losses: Agriculture and farmland $ 12 $ — $ — $ — $ — $ 12 Construction 959 — 2 — 880 1,841 Commercial & industrial 2,940 ( 10 ) 8 — 497 3,435 Commercial real estate Multifamily 1,483 — 2 — 429 1,914 Owner occupied 6,572 ( 6 ) 1 — ( 686 ) 5,881 Non-owner occupied 5,773 ( 54 ) 4 2,300 3 8,026 Residential real estate First liens 4,778 — 13 — ( 744 ) 4,047 Second liens and lines of credit 1,072 — 10 — ( 105 ) 977 Municipal 79 — — — ( 15 ) 64 Consumer 99 ( 25 ) 5 — 12 91 Total $ 23,767 $ ( 95 ) $ 45 $ 2,300 $ 271 $ 26,288 Beginning balance, prior to adoption of ASC 326 Impact of adopting ASC 326 Charge-offs Recoveries Provision for credit losses Ending balance (In Thousands) For the Six Months Ended June 30, 2023 Allowance for credit losses: Agriculture and farmland $ 279 $ ( 190 ) $ — $ — $ 120 $ 209 Construction 274 513 — — ( 59 ) 728 Commercial & industrial 583 283 — — ( 137 ) 729 Commercial real estate Multifamily 480 340 — — ( 147 ) 673 Owner occupied 635 760 — — 164 1,559 Non-owner occupied 1,116 3,195 — 12 27 4,350 Residential real estate First liens 1,029 635 — 28 ( 295 ) 1,397 Second liens and lines of credit 218 140 — 59 ( 34 ) 383 Municipal 12 ( 2 ) — — ( 3 ) 7 Consumer 40 ( 19 ) — — 1 22 Unallocated — — — — 171 171 Total $ 4,666 $ 5,655 $ — $ 99 $ ( 192 ) $ 10,228 The following tables present the amortized cost basis of nonaccrual loans and loans past due 90 days or greater and still accruing by segments of the loan portfolio: As of June 30, 2024 (In Thousands) Nonaccrual with No Allowance for Credit Loss Nonaccrual with a related Allowance for Credit Loss Total Nonaccrual Loans 90 days or greater past due still accruing Agriculture and farmland $ — $ — $ — $ 189 Construction 10 — 10 89 Commercial & industrial 128 83 211 — Commercial real estate Multifamily — — — — Owner occupied 2,615 629 3,244 — Non-owner occupied 352 3,919 4,271 — Residential real estate First liens 1,896 — 1,896 307 Second liens and lines of credit 332 — 332 39 Municipal — — — — Consumer 1 — 1 — Total $ 5,334 $ 4,631 $ 9,965 $ 624 As of December 31, 2023 (In Thousands) Nonaccrual with No Allowance for Credit Loss Nonaccrual with a related Allowance for Credit Loss Total Nonaccrual Loans 90 days or greater past due still accruing Agriculture and farmland $ — $ — $ — $ — Construction 191 — 191 — Commercial & industrial 53 8 61 58 Commercial real estate Multifamily — — — — Owner occupied 2,465 83 2,548 6 Non-owner occupied 948 281 1,229 — Residential real estate First liens 2,346 361 2,707 149 Second liens and lines of credit 294 — 294 — Municipal — — — — Consumer 7 — 7 — Total $ 6,304 $ 733 $ 7,037 $ 213 The Company recognized $ 88 and $ 111 of interest income on nonaccrual loans during the three and six months ended June 30, 2024 respectively and $ 12 and $ 28 for the three and six months ended June 30, 2023, respectively. The following tables present, by class of loans, the carrying value of collateral dependent nonaccrual loans and type of collateral as of June 30, 2024 and December 31, 2023. June 30, 2024 (In Thousands) Real Estate Business Assets Other Total Agriculture and farmland loans $ — $ — $ — $ — Construction 10 — — 10 Commercial & industrial loans — 211 — 211 Commercial real estate loans Multifamily — — — — Owner occupied 3,244 — — 3,244 Non-owner occupied 4,271 — — 4,271 Residential real estate loans First liens 1,896 — — 1,896 Second liens and lines of credit 332 — — 332 Municipal — — — — Consumer — — 1 1 $ 9,753 $ 211 $ 1 $ 9,965 December 31, 2023 (In Thousands) Real Estate Business Assets Other Total Agriculture and farmland loans $ — $ — $ — $ — Construction 191 — — 191 Commercial & industrial loans — 61 — 61 Commercial real estate loans Multifamily — — — — Owner occupied 2,548 — — 2,548 Non-owner occupied 1,229 — — 1,229 Residential real estate loans First liens 2,707 — — 2,707 Second liens and lines of credit 294 — — 294 Municipal — — — — Consumer — — 7 7 $ 6,969 $ 61 $ 7 $ 7,037 The following tables present an aging analysis of the recorded investment of past due loans at June 30, 2024 and December 31, 2023. June 30, 2024 (In Thousands) 30-59 60-89 90 Days Total Current Total Agriculture and farmland $ — $ — $ 189 $ 189 $ 66,748 $ 66,937 Construction — 10 89 99 178,598 178,697 Commercial & industrial 50 180 30 260 240,116 240,376 Commercial real estate Multifamily — — — — 195,814 195,814 Owner occupied 1,758 618 2,976 5,352 465,193 470,545 Non-owner occupied — 218 352 570 576,878 577,448 Residential real estate First liens 1,806 311 1,359 3,476 370,567 374,043 Second liens and lines of credit 233 1 339 573 68,417 68,990 Municipal — — — — 15,507 15,507 Consumer 8 — — 8 4,354 4,362 Total $ 3,855 $ 1,338 $ 5,334 $ 10,527 $ 2,182,192 $ 2,192,719 December 31, 2023 (In Thousands) 30-59 60-89 90 Days Total Current Total Agriculture and farmland $ 14 $ — $ — $ 14 $ 65,847 $ 65,861 Construction 10 — 191 201 161,624 161,825 Commercial & industrial 46 1 118 165 232,247 232,412 Commercial real estate Multifamily — — — — 176,843 176,843 Owner occupied 156 2,802 137 3,095 471,869 474,964 Non-owner occupied — 86 1,239 1,325 550,156 551,481 Residential real estate First liens 719 419 872 2,010 374,082 376,092 Second liens and lines of credit 279 128 97 504 66,144 66,648 Municipal — — — — 16,740 16,740 Consumer 15 15 7 37 5,207 5,244 Total $ 1,239 $ 3,451 $ 2,661 $ 7,351 $ 2,120,759 $ 2,128,110 Credit Quality Information The following tables represent credit exposures by internally assigned grades as of June 30, 2024 and December 31, 2023. The grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled or at all. The Company’s internally assigned grades are as follows: Pass – loans that are protected by the current net worth and paying capacity of the obligor or by the value of the underlying collateral. There are four sub-grades within the Pass category to further distinguish the loan. Special Mention – loans where a potential weakness or risk exists, which could cause a more serious problem if not corrected. Substandard – loans that have a well-defined weakness based on objective evidence and are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Doubtful – loans classified as Doubtful have all the weaknesses inherent in a Substandard asset. In addition, these weaknesses make collection or liquidation in full highly questionable and improbable, based on existing circumstances. Loss – loans classified as a Loss are considered uncollectible and are immediately charged against allowances. The following tables present the classes of the loan portfolio summarized by the internal risk rating system as of June 30, 2024. June 30, 2024 Term Loans Amortized Cost Basis by Origination Year (In Thousands) 2024 2023 2022 2021 2020 Prior Revolving loans amortized cost basis Revolving loans converted to term Total Agriculture and farmland Pass $ 7,626 $ 1,409 $ 13,990 $ 9,248 $ 4,962 $ 22,036 $ 3,977 $ 14 $ 63,262 Special mention — 11 — 64 — 1,909 216 — 2,200 Substandard or lower — — — 11 104 1,346 14 — 1,475 Total Agriculture and farmland $ 7,626 $ 1,420 $ 13,990 $ 9,323 $ 5,066 $ 25,291 $ 4,207 $ 14 $ 66,937 Agriculture and farmland Current period gross charge-offs — — — — — — — — — Construction Pass 16,724 73,895 39,580 23,160 2,762 10,096 12,188 — 178,405 Special mention — — — — — — — — — Substandard or lower — 203 — — — — — 89 292 Total Construction 16,724 74,098 39,580 23,160 2,762 10,096 12,188 89 178,697 Construction Current period gross charge-offs — — — — — — — — — Commercial & industrial Pass 22,207 25,273 26,724 21,475 11,990 9,665 113,242 344 230,920 Special mention 18 171 231 110 — 391 6,990 — 7,911 Substandard or lower — 78 78 116 — 363 893 17 1,545 Total Commercial & industrial 22,225 25,522 27,033 21,701 11,990 10,419 121,125 361 240,376 Commercial & industrial Current period gross charge-offs — — — — 4 6 — — 10 Commercial real estate - Multifamily Pass 15,170 9,327 87,731 51,266 19,532 10,616 328 — 193,970 Special mention — — — — — 1,844 — — 1,844 Substandard or lower — — — — — — — — — Total Commercial real estate - Multifamily 15,170 9,327 87,731 51,266 19,532 12,460 328 — 195,814 Commercial real estate - Multifamily Current period gross charge-offs — — — — — — — — — June 30, 2024 Term Loans Amortized Cost Basis by Origination Year (In Thousands) 2024 2023 2022 2021 2020 Prior Revolving loans amortized cost basis Revolving loans converted to term Total Commercial real estate - Owner occupied Pass 16,208 55,288 112,341 94,052 49,371 113,755 11,307 — 452,322 Special mention — — 3,133 2,437 416 5,971 292 — 12,249 Substandard or lower — — 184 — 629 5,032 58 71 5,974 Total Commercial real estate - Owner occupied 16,208 55,288 115,658 96,489 50,416 124,758 11,657 71 470,545 Commercial real estate - Owner occupied Current period gross charge-offs — — — — — 6 — — 6 Commercial real estate - Non-owner occupied Pass 30,111 55,951 168,695 117,031 51,523 131,928 10,183 219 565,641 Special mention — 1,000 — 39 3,399 3,099 — — 7,537 Substandard or lower — — — 3,919 — 277 — 74 4,270 Total Commercial real estate - Non-owner occupied 30,111 56,951 168,695 120,989 54,922 135,304 10,183 293 577,448 Commercial real estate - Non-owner occupied Current period gross charge-offs — — — — — 54 — — 54 Municipal Pass 46 438 — 378 922 2,490 88 — 4,362 Special mention — — — — — — — — — Substandard or lower — — — — — — — — — Total Commercial real estate - Municipal 46 438 — 378 922 2,490 88 — 4,362 Municipal Current period gross charge-offs — — — — — — — — — Total Pass $ 108,092 $ 221,581 $ 449,061 $ 316,610 $ 141,062 $ 300,586 $ 151,313 $ 577 $ 1,688,882 Special mention 18 1,182 3,364 2,650 3,815 13,214 7,498 — 31,741 Substandard or lower — 281 262 4,046 733 7,018 965 251 13,556 Total $ 108,110 $ 223,044 $ 452,687 $ 323,306 $ 145,610 $ 320,818 $ 159,776 $ 828 $ 1,734,179 The following tables present the classes of the loan portfolio summarized by the internal risk rating system as of December 31, 2023. December 31, 2023 Term Loans Amortized Cost Basis by Origination Year (In Thousands) 2023 2022 2021 2020 2019 Prior Revolving loans amortized cost basis Revolving loans converted to term Total Agriculture and farmland Pass $ 1,466 $ 14,372 $ 9,613 $ 5,147 $ 2,319 $ 22,627 $ 5,114 $ 29 $ 60,687 Special mention — — 30 — 811 1,206 342 — 2,389 Substandard or lower 13 — 15 121 — 2,576 60 — 2,785 Total Agriculture and farmland $ 1,479 $ 14,372 $ 9,658 $ 5,268 $ 3,130 $ 26,409 $ 5,516 $ 29 $ 65,861 Agriculture and farmland Current period gross charge-offs — — — — — — — — — Construction Pass 55,462 45,206 30,593 2,932 6,161 5,446 14,424 1,317 161,541 Special mention — — — — — — 93 — 93 Substandard or lower — — — 98 — — — 93 191 Total Construction 55,462 45,206 30,593 3,030 6,161 5,446 14,517 1,410 161,825 Construction Current period gross charge-offs — — — — — — — — — Commercial & industrial Pass 29,586 31,653 24,184 13,831 4,285 7,536 119,602 68 230,745 Special mention — 113 139 — 15 4 1,071 — 1,342 Substandard or lower — — 47 — 194 — 43 41 325 Total Commercial & industrial 29,586 31,766 24,370 13,831 4,494 7,540 120,716 109 232,412 Commercial & industrial Current period gross charge-offs — — — — — — 200 — 200 Commercial real estate - Multifamily Pass 12,587 80,127 50,320 18,871 6,031 6,737 298 — 174,971 Special mention — — — — — — — — — Substandard or lower — — — — — 1,872 — — 1,872 Total Commercial real estate - Multifamily 12,587 80,127 50,320 18,871 6,031 8,609 298 — 176,843 Commercial real estate - Multifamily Current period gross charge-offs — — — — — — — — — December 31, 2023 Term Loans Amortized Cost Basis by Origination Year (In Thousands) 2023 2022 2021 2020 2019 Prior Revolving loans amortized cost basis Revolving loans converted to term Total Commercial real estate - Owner occupied Pass 53,765 127,684 96,193 50,888 39,043 83,753 7,801 6 459,133 Special mention — 377 3,125 — 6,318 — 429 — 10,249 Substandard or lower — — — 626 2,408 2,391 157 — 5,582 Total Commercial real estate - Owner occupied 53,765 128,061 99,318 51,514 47,769 86,144 8,387 6 474,964 Commercial real estate - Owner occupied Current period gross charge-offs — — — — — — — — — Commercial real estate - Non-owner occupied Pass 58,210 173,415 118,081 56,025 59,792 78,465 6,177 86 550,251 Special mention — — 42 — — — — — 42 Substandard or lower — — 325 — 56 558 249 — 1,188 Total Commercial real estate - Non-owner occupied 58,210 173,415 118,448 56,025 59,848 79,023 6,426 86 551,481 Commercial real estate - Non-owner occupied Current period gross charge-offs — — — — — — — — — Municipal Pass 529 — 420 1,675 — 2,526 94 — 5,244 Special mention — — — — — — — — — Substandard or lower — — — — — — — — — Total Commercial real estate - Municipal 529 — 420 1,675 — 2,526 94 — 5,244 Municipal Current period gross charge-offs — — — — — — — — — Total Pass $ 211,605 $ 472,457 $ 329,404 $ 149,369 $ 117,631 $ 207,090 $ 153,510 $ 1,506 $ 1,642,572 Special mention — 490 3,336 — 7,144 1,210 1,935 — 14,115 Substandard or lower 13 — 387 845 2,658 7,397 509 134 11,943 Total $ 211,618 $ 472,947 $ 333,127 $ 150,214 $ 127,433 $ 215,697 $ 155,954 $ 1,640 $ 1,668,630 The Company considers the performance of the loan portfolio and its impact on the allowance for credit losses. As part of our adoption of CECL, the Company will monitor small balance, homogeneous loans, such as home equity, residential mortgage, and consumer loans based on delinquency status rather than the assignment of loan specific risk ratings. The Company will evaluate credit quality based on the aging status of the loan. The following tables present the amortized cost of these loans based on payment activity, by origination year, as of June 30, 2024 and December 31, 2023. June 30, 2024 Term Loans Amortized Cost Basis by Origination Year (In Thousands) 2024 2023 2022 2021 2020 Prior Revolving loans amortized cost basis Revolving loans converted to term Total Residential real estate - First liens Performing $ 16,571 $ 41,277 $ 91,018 $ 87,324 $ 37,188 $ 88,841 $ 9,816 $ — $ 372,035 Nonperforming — — — 26 — 1,982 — — 2,008 Total Residential real estate - First liens $ 16,571 $ 41,277 $ 91,018 $ 87,350 $ 37,188 $ 90,823 $ 9,816 $ — $ 374,043 Residential real estate - First liens Current period gross charge-offs — — — — — — — — — Residential real estate - Second liens and lines of credit Performing 1,838 971 1,615 380 64 2,131 60,642 998 68,639 Nonperforming — — — — — 165 39 147 351 Total Residential real estate - Second liens and lines of credit 1,838 971 1,615 380 64 2,296 60,681 1,145 68,990 Residential real estate - Second liens and lines of credit Current period gross charge-offs — — — — — — — — — Consumer and other Performing 679 4,787 355 144 93 72 9,377 — 15,507 Nonperforming — — — — — — — — — Total Consumer and other 679 4,787 355 144 93 72 9,377 — 15,507 Consumer and other Current period gross charge-offs — 2 2 5 1 15 — — 25 Total Performing $ 19,088 $ 47,035 $ 92,988 $ 87,848 $ 37,345 $ 91,044 $ 79,835 $ 998 $ 456,181 Nonperforming — — — 26 — 2,147 39 147 2,359 Total $ 19,088 $ 47,035 $ 92,988 $ 87,874 $ 37,345 $ 93,191 $ 79,874 $ 1,145 $ 458,540 December 31, 2023 Term Loans Amortized Cost Basis by Origination Year (In Thousands) 2023 2022 2021 2020 2019 Prior Revolving loans amortized cost basis Revolving loans converted to term Total Residential real estate - First liens Performing $ 41,984 $ 90,220 $ 95,232 $ 37,966 $ 22,934 $ 77,331 $ 8,982 $ — $ 374,649 Nonperforming — — 33 101 208 1,101 — — 1,443 Total Residential real estate - First liens $ 41,984 $ 90,220 $ 95,265 $ 38,067 $ 23,142 $ 78,432 $ 8,982 $ — $ 376,092 Residential real estate - First liens Current period gross charge-offs — — — — — — — — — Residential real estate - Second liens and lines of credit Performing 1,045 1,702 386 184 205 2,259 60,717 — 66,498 Nonperforming — — — — — — 150 — 150 Total Residential real estate - Second liens and lines of credit 1,045 1,702 386 184 205 2,259 60,867 — 66,648 Residential real estate - Second liens and lines of credit Current period gross charge-offs — — — — — — — — — Consumer and other Performing 5,007 437 213 150 73 85 10,770 — 16,735 Nonperforming — — — — — — 5 — 5 Total Consumer and other 5,007 437 213 150 73 85 10,775 — 16,740 Consumer and other Current period gross charge-offs — — — — — — 1 — 1 Total Performing $ 48,036 $ 92,359 $ 95,831 $ 38,300 $ 23,212 $ 79,675 $ 80,469 $ — $ 457,882 Nonperforming — — 33 101 208 1,101 155 — 1,598 Total $ 48,036 $ 92,359 $ 95,864 $ 38,401 $ 23,420 $ 80,776 $ 80,624 $ — $ 459,480 Modifications to Borrowers Experiencing Financial Difficulty The Company may modify loans to borrowers experiencing financial difficulty by providing principal forgiveness, term extension, interest rate reduction or an other-than-insignificant payment delay. When principal forgiveness is provided, the amount of forgiveness is charged off against the allowance for credit losses. The Company may also provide multiple types of modifications on an individual loan. For the three months ended June 30, 2024 , the Company provided a payment delay to a Non Owner Occupied Commercial Real Estate borrower experiencing financial difficulty. At June 30, 2024, the amortized cost basis of the loan is $ 3,919 and has been placed on non-accrual. For the three months ended June 30, 2023, the Company did not extend any modifications to borrowers experiencing financial difficulty that had a more-than-insignificant direct change in the contractual cash flows of the loans. Purchased Credit Deteriorated Loans The Company has purchased loans for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. The carrying amount of these loans is as follows. (In Thousands) 2023 Purchase price of loans at acquisition $ 435,704 Allowance for credit losses at acquisition 6,603 Non-credit (discount) premium at acquisition ( 16,981 ) Par value of acquired loans at acquisition $ 425,326 |