Loans and Leases and the Allowance for Credit Losses | Note 4. Loans and Leases and the Allowance for Credit Losses Loans and Leases The Company’s loan and lease portfolio was comprised of the following as of June 30, 2023, and December 31, 2022: (dollars in thousands) June 30, December 31, Commercial Commercial and Industrial $ 1,502,676 $ 1,389,066 Paycheck Protection Program 13,789 19,579 Commercial Mortgage 3,796,769 3,725,542 Construction 236,428 260,825 Lease Financing 62,779 69,491 Total Commercial 5,612,441 5,464,503 Consumer Residential Mortgage 4,721,976 4,653,072 Home Equity 2,278,105 2,225,950 Automobile 878,767 870,396 Other 2 423,600 432,499 Total Consumer 8,302,448 8,181,917 Total Loans and Leases $ 13,914,889 $ 13,646,420 1. Comprised of other revolving credit, installment, and lease financing. Most of the Company’s lending activity is with customers located in the State of Hawaii. A substantial portion of the Company’s real estate loans are secured by real estate located in the State of Hawaii. Net loss related to sales of residential mortgage loans, recorded as a component of mortgage banking income was $ 0.2 million for the three months ended June 30, 2023 , and net gains related to sales of residential mortgage loans, recorded as a component of mortgage banking income was $ 0.2 million for the three months ended June 30, 2022 , $ 0.3 million and $ 0.2 million for the six months ended June 30, 2023, and June 30, 2022, respectively. The Company elected to exclude AIR from the amortized cost basis of loans disclosed throughout this footnote. As of June 30, 2023, and December 31, 2022, AIR for loans totaled $ 42.9 million and $ 40.1 million, respectively, and is included in the “accrued interest receivable” line item on the Company’s consolidated statements of condition. Allowance for Credit Losses (the “Allowance”) The following presents by portfolio segment, the activity in the Allowance for the three and six months ended June 30, 2023, and June 30, 2022. (dollars in thousands) Commercial Consumer Total Three Months Ended June 30, 2023 Allowance for Credit Losses: Balance at Beginning of Period $ 58,771 $ 84,806 $ 143,577 Loans and Leases Charged-Off ( 203 ) ( 3,308 ) ( 3,511 ) Recoveries on Loans and Leases Previously Charged-Off 103 2,031 2,134 Net Loans and Leases Recovered (Charged-Off) ( 100 ) ( 1,277 ) ( 1,377 ) Provision for Credit Losses 5,270 ( 2,103 ) 3,167 Balance at End of Period $ 63,941 $ 81,426 $ 145,367 Six Months Ended June 30, 2023 Allowance for Credit Losses: Balance at Beginning of Period $ 63,900 $ 80,539 $ 144,439 Loans and Leases Charged-Off ( 464 ) ( 7,356 ) ( 7,820 ) Recoveries on Loans and Leases Previously Charged-Off 153 3,622 3,775 Net Loans and Leases Recovered (Charged-Off) ( 311 ) ( 3,734 ) ( 4,045 ) Provision for Credit Losses 352 4,621 4,973 Balance at End of Period $ 63,941 $ 81,426 $ 145,367 Three Months Ended June 30, 2022 Allowance for Credit Losses: Balance at Beginning of Period $ 62,093 $ 89,935 $ 152,028 Loans and Leases Charged-Off ( 233 ) ( 3,113 ) ( 3,346 ) Recoveries on Loans and Leases Previously Charged-Off 51 2,664 2,715 Net Loans and Leases Recovered (Charged-Off) ( 182 ) ( 449 ) ( 631 ) Provision for Credit Losses ( 85 ) ( 2,800 ) ( 2,885 ) Balance at End of Period $ 61,826 $ 86,686 $ 148,512 Six Months Ended June 30, 2022 Allowance for Credit Losses: Balance at Beginning of Period $ 64,950 $ 92,871 $ 157,821 Loans and Leases Charged-Off ( 582 ) ( 6,672 ) ( 7,254 ) Recoveries on Loans and Leases Previously Charged-Off 420 4,717 5,137 Net Loans and Leases Recovered (Charged-Off) ( 162 ) ( 1,955 ) ( 2,117 ) Provision for Credit Losses ( 2,962 ) ( 4,230 ) ( 7,192 ) Balance at End of Period $ 61,826 $ 86,686 $ 148,512 Credit Quality Indicators The Company uses several credit quality indicators to manage credit risk in an ongoing manner. The Company uses an internal credit risk rating system that categorizes loans and leases into pass, special mention, or classified categories. Credit risk ratings are applied individually to those classes of loans and leases that have significant or unique credit characteristics that benefit from a case-by-case evaluation. These are typically loans and leases to businesses or individuals in the classes which comprise the commercial portfolio segment. Groups of loans and leases that are underwritten and structured using standardized criteria and characteristics are typically monitored and risk-rated collectively. These are typically loans and leases to individuals in the classes which comprise the consumer portfolio segment. The following are the definitions of the Company’s credit quality indicators: Pass: Loans and leases in all classes within the commercial and consumer portfolio segments that are not adversely rated, are contractually current as to principal and interest, and are otherwise in compliance with the contractual terms of the loan or lease agreement. Residential mortgage loans that are past due 90 days or more as to principal or interest may be considered Pass if the current loan-to-value ratio is 60 % or less. Home equity loans that are past due 90 days or more as to principal or interest may be considered Pass if: a) the home equity loan is in a first lien position and the current loan-to-value ratio is 60 % or less; or b) the first mortgage is with the Company and the current combined loan-to-value ratio is 60 % or less. Special Mention: Loans and leases in all classes within the commercial portfolio segment that have potential weaknesses that deserve management’s close attention. If not addressed, these potential weaknesses may result in deterioration of the repayment prospects for the loan or lease. The Special Mention credit quality indicator is not used for the consumer portfolio segment. Classified: Loans and leases in the classes within the commercial portfolio segment that are inadequately protected by the sound worth and paying capacity of the borrower or of the collateral pledged, if any. Classified loans and leases are also those in the classes within the consumer portfolio segment that are past due 90 days or more as to principal or interest. Residential mortgage and home equity loans may be current as to principal and interest, but may be considered Classified for a period of generally up to six months following a loan modification. Following a period of demonstrated performance in accordance with the modified contractual terms, the loan may be removed from Classified status. For Pass rated credits, risk ratings are certified at a minimum annually. For Special Mention or Classified credits, risk ratings are reviewed for appropriateness on an ongoing basis, monthly, or at a minimum, quarterly. The following presents by credit quality indicator, loan class, and year of origination, the amortized cost basis of the Company’s loans and leases as of June 30, 2023. Term Loans by Origination Year (dollars in thousands) 2023 2 2022 2021 2020 2019 Prior Revolving Revolving Total Loans June 30, 2023 Commercial Commercial and Industrial Pass $ 289,456 $ 295,319 $ 250,845 $ 159,176 $ 44,914 $ 86,713 $ 330,831 $ 205 $ 1,457,459 Special Mention 551 11,617 2,354 49 - - 1,763 - 16,334 Classified 83 2,532 5,847 6,731 11 8,486 5,176 17 28,883 Total Commercial and Industrial $ 290,090 $ 309,468 $ 259,046 $ 165,956 $ 44,925 $ 95,199 $ 337,770 $ 222 $ 1,502,676 Paycheck Protection Program Pass $ - $ - $ 2,692 $ 11,097 $ - $ - $ - $ - $ 13,789 Total Paycheck Protection Program $ - $ - $ 2,692 $ 11,097 $ - $ - $ - $ - $ 13,789 Commercial Mortgage Pass $ 675,565 $ 997,296 $ 725,699 $ 460,847 $ 250,447 $ 491,306 $ 42,928 $ - $ 3,644,088 Special Mention 30,482 61,921 6,249 - - 19,399 - - 118,051 Classified 3,220 4,313 6,351 13,593 234 6,919 - - 34,630 Total Commercial Mortgage $ 709,267 $ 1,063,530 $ 738,299 $ 474,440 $ 250,681 $ 517,624 $ 42,928 $ - $ 3,796,769 Construction Pass $ 19,496 $ 125,499 $ 71,654 $ 2,859 $ 16,184 $ 296 $ 440 $ - $ 236,428 Total Construction $ 19,496 $ 125,499 $ 71,654 $ 2,859 $ 16,184 $ 296 $ 440 $ - $ 236,428 Lease Financing Pass $ 4,938 $ 14,413 $ 15,495 $ 9,838 $ 7,523 $ 9,756 $ - $ - $ 61,963 Classified - 57 130 107 - 522 - - 816 Total Lease Financing $ 4,938 $ 14,470 $ 15,625 $ 9,945 $ 7,523 $ 10,278 $ - $ - $ 62,779 Total Commercial $ 1,023,791 $ 1,512,967 $ 1,087,316 $ 664,297 $ 319,313 $ 623,397 $ 381,138 $ 222 $ 5,612,441 Consumer Residential Mortgage Pass $ 213,211 $ 811,601 $ 1,272,073 $ 1,003,636 $ 311,321 $ 1,108,419 $ - $ - $ 4,720,261 Classified - - - - - 1,715 - - 1,715 Total Residential Mortgage $ 213,211 $ 811,601 $ 1,272,073 $ 1,003,636 $ 311,321 $ 1,110,134 $ - $ - $ 4,721,976 Home Equity Pass $ - $ - $ - $ - $ - $ 45 $ 2,235,915 $ 39,738 $ 2,275,698 Classified - - - - - - 1,168 1,239 2,407 Total Home Equity $ - $ - $ - $ - $ - $ 45 $ 2,237,083 $ 40,977 $ 2,278,105 Automobile Pass $ 158,785 $ 351,850 $ 180,380 $ 82,119 $ 64,406 $ 40,650 $ - $ - $ 878,190 Classified - 94 93 114 199 77 - - 577 Total Automobile $ 158,785 $ 351,944 $ 180,473 $ 82,233 $ 64,605 $ 40,727 $ - $ - $ 878,767 Other 1 Pass $ 68,369 $ 160,685 $ 108,394 $ 20,822 $ 25,708 $ 38,104 $ 884 $ - $ 422,966 Classified - 153 154 13 146 168 - - 634 Total Other $ 68,369 $ 160,838 $ 108,548 $ 20,835 $ 25,854 $ 38,272 $ 884 $ - $ 423,600 Total Consumer $ 440,365 $ 1,324,383 $ 1,561,094 $ 1,106,704 $ 401,780 $ 1,189,178 $ 2,237,967 $ 40,977 $ 8,302,448 Total Loans and Leases $ 1,464,156 $ 2,837,350 $ 2,648,410 $ 1,771,001 $ 721,093 $ 1,812,575 $ 2,619,105 $ 41,199 $ 13,914,889 1. Comprised of other revolving credit, installment, and lease financing. 2. Loans reported as Special Mention or Classified in the 2023 column represent renewal of loans that originated in an earlier period. For the six months ended June 30, 2023 , $ 5.3 million of revolving loans were converted to term loans. The following presents by credit quality indicator, loan class, and year of origination, the amortized cost basis of the Company’s loans and leases as of December 31, 2022. Term Loans by Origination Year (dollars in thousands) 2022 2021 2020 2019 2018 Prior Revolving Revolving Total Loans December 31, 2022 Commercial Commercial and Industrial Pass $ 360,748 $ 348,300 $ 224,264 $ 59,127 $ 46,799 $ 71,906 $ 257,349 $ 155 $ 1,368,648 Special Mention 273 - - - 96 92 1,357 - 1,818 Classified 7,295 91 1,030 - 1,644 6,267 2,252 21 18,600 Total Commercial and Industrial $ 368,316 $ 348,391 $ 225,294 $ 59,127 $ 48,539 $ 78,265 $ 260,958 $ 176 $ 1,389,066 Paycheck Protection Program Pass $ - $ 5,359 $ 14,220 $ - $ - $ - $ - $ - $ 19,579 Total Paycheck Protection Program $ - $ 5,359 $ 14,220 $ - $ - $ - $ - $ - $ 19,579 Commercial Mortgage Pass $ 1,182,831 $ 771,375 $ 691,054 $ 283,553 $ 131,055 $ 494,924 $ 48,771 $ - $ 3,603,563 Special Mention 29,707 37,657 28,105 - 1,482 5,014 - - 101,965 Classified 182 1,964 8,545 624 - 8,699 - - 20,014 Total Commercial Mortgage $ 1,212,720 $ 810,996 $ 727,704 $ 284,177 $ 132,537 $ 508,637 $ 48,771 $ - $ 3,725,542 Construction Pass $ 124,507 $ 69,992 $ 37,133 $ 16,838 $ - $ 297 $ 12,058 $ - $ 260,825 Total Construction $ 124,507 $ 69,992 $ 37,133 $ 16,838 $ - $ 297 $ 12,058 $ - $ 260,825 Lease Financing Pass $ 16,959 $ 17,823 $ 11,408 $ 9,768 $ 6,379 $ 6,444 $ - $ - $ 68,781 Classified - - - - 710 - - - 710 Total Lease Financing $ 16,959 $ 17,823 $ 11,408 $ 9,768 $ 7,089 $ 6,444 $ - $ - $ 69,491 Total Commercial $ 1,722,502 $ 1,252,561 $ 1,015,759 $ 369,910 $ 188,165 $ 593,643 $ 321,787 $ 176 $ 5,464,503 Consumer Residential Mortgage Pass $ 827,909 $ 1,304,831 $ 1,035,285 $ 321,208 $ 138,214 $ 1,023,841 $ - $ - $ 4,651,288 Classified - - - - 552 1,232 - - 1,784 Total Residential Mortgage $ 827,909 $ 1,304,831 $ 1,035,285 $ 321,208 $ 138,766 $ 1,025,073 $ - $ - $ 4,653,072 Home Equity Pass $ - $ - $ - $ - $ - $ 890 $ 2,186,598 $ 36,114 $ 2,223,602 Classified - - - - - 25 1,105 1,218 2,348 Total Home Equity $ - $ - $ - $ - $ - $ 915 $ 2,187,703 $ 37,332 $ 2,225,950 Automobile Pass $ 405,440 $ 216,039 $ 100,608 $ 84,052 $ 45,301 $ 18,366 $ - $ - $ 869,806 Classified 121 260 23 43 92 51 - - 590 Total Automobile $ 405,561 $ 216,299 $ 100,631 $ 84,095 $ 45,393 $ 18,417 $ - $ - $ 870,396 Other 1 Pass $ 185,347 $ 124,759 $ 31,343 $ 39,902 $ 16,364 $ 9,853 $ 23,228 $ 1,020 $ 431,816 Classified 117 114 70 148 129 24 59 22 683 Total Other $ 185,464 $ 124,873 $ 31,413 $ 40,050 $ 16,493 $ 9,877 $ 23,287 $ 1,042 $ 432,499 Total Consumer $ 1,418,934 $ 1,646,003 $ 1,167,329 $ 445,353 $ 200,652 $ 1,054,282 $ 2,210,990 $ 38,374 $ 8,181,917 Total Loans and Leases $ 3,141,436 $ 2,898,564 $ 2,183,088 $ 815,263 $ 388,817 $ 1,647,925 $ 2,532,777 $ 38,550 $ 13,646,420 1. Comprised of other revolving credit, installment, and lease financing. For the year ended December 31, 2022 , $ 6.2 million of revolving loans were converted to term loans. Aging Analysis Loans and leases are considered to be past due once becoming 30 days delinquent. For the consumer portfolio, this generally represents two missed monthly payments. The following presents by class, an aging analysis of the Company’s loan and lease portfolio as of June 30, 2023, and December 31, 2022. (dollars in thousands) 30 - 59 60 - 89 Past Due Non- Total Current Total Non- 2 As of June 30, 2023 Commercial Commercial and Industrial $ 202 $ 252 $ — $ 17 $ 471 $ 1,502,205 $ 1,502,676 $ 17 Paycheck Protection Program — — — — — 13,789 13,789 — Commercial Mortgage — — — 3,107 3,107 3,793,662 3,796,769 3,107 Construction — — — — — 236,428 236,428 — Lease Financing — — — — — 62,779 62,779 — Total Commercial 202 252 — 3,124 3,578 5,608,863 5,612,441 3,124 Consumer Residential Mortgage 2,173 1,882 3,560 3,504 11,119 4,710,857 4,721,976 884 Home Equity 2,464 1,826 2,022 3,809 10,121 2,267,984 2,278,105 751 Automobile 10,830 1,668 577 — 13,075 865,692 878,767 — Other 1 2,169 748 633 — 3,550 420,050 423,600 — Total Consumer 17,636 6,124 6,792 7,313 37,865 8,264,583 8,302,448 1,635 Total $ 17,838 $ 6,376 $ 6,792 $ 10,437 $ 41,443 $ 13,873,446 $ 13,914,889 $ 4,759 As of December 31, 2022 Commercial Commercial and Industrial $ 252 $ 9 $ — $ 37 $ 298 $ 1,388,768 $ 1,389,066 $ 37 Paycheck Protection Program — — — — — 19,579 19,579 — Commercial Mortgage — — — 3,309 3,309 3,722,233 3,725,542 3,309 Construction — — — — — 260,825 260,825 — Lease Financing — — — — — 69,491 69,491 — Total Commercial 252 9 — 3,346 3,607 5,460,896 5,464,503 3,346 Consumer Residential Mortgage 3,016 721 2,429 4,239 10,405 4,642,667 4,653,072 1,729 Home Equity 1,639 960 1,673 4,022 8,294 2,217,656 2,225,950 664 Automobile 13,293 1,988 589 — 15,870 854,526 870,396 — Other 1 2,318 1,302 683 — 4,303 428,196 432,499 — Total Consumer 20,266 4,971 5,374 8,261 38,872 8,143,045 8,181,917 2,393 Total $ 20,518 $ 4,980 $ 5,374 $ 11,607 $ 42,479 $ 13,603,941 $ 13,646,420 $ 5,739 1. Comprised of other revolving credit, installment, and lease financing. 2. Represents non-accrual loans that are not past due 30 days or more; however, full payment of principal and interest is still not expected. Non-Accrual Loans and Leases The following presents the non-accrual loans and leases as of June 30, 2023, and December 31, 2022. June 30, 2023 December 31, 2022 (dollars in thousands) Non-accrual Non-accrual Total Non- Non-accrual Non-accrual Total Non- Commercial Commercial and Industrial $ 17 $ — $ 17 $ 37 $ — $ 37 Commercial Mortgage — 3,107 3,107 — 3,309 3,309 Total Commercial 17 3,107 3,124 37 3,309 3,346 Consumer Residential Mortgage 3,504 — 3,504 4,239 — 4,239 Home Equity 3,809 — 3,809 4,022 — 4,022 Total Consumer 7,313 — 7,313 8,261 — 8,261 Total $ 7,330 $ 3,107 $ 10,437 $ 8,298 $ 3,309 $ 11,607 All payments received while on non-accrual status are applied against the principal balance of the loan or lease. The Company does not recognize interest income while loans or leases are on non-accrual status. Loan Modifications to Borrowers Experiencing Financial Difficulty Modifications to borrowers experiencing financial difficulty may include interest rate reductions, principal or interest forgiveness, forbearances, term extensions, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. The following illustrates the most common loan modifications by loan classes offered by the Company that are required to be disclosed pursuant to the requirements of ASU 2022-02: Loan Classes Modification Types Commercial: Term extension, interest rate reductions, payment delay, or combination thereof. These modifications extend the term of the loan, lower the payment amount, or otherwise delay payments during a defined period for the purpose of providing borrowers additional time to return to compliance with the original loan term. Residential Mortgage/ Forbearance period greater than six months. These modifications require reduced or no payments during the forbearance period for the purpose of providing borrowers additional time to return to compliance with the original loan term. Residential Mortgage/ Term extension and rate adjustment. These modifications extend the term of the loan and provides for an adjustment to the interest rate, which reduces the monthly payment requirement. Automobile/ Term extension greater than three months. These modifications extend the term of the loan, which reduces the monthly payment requirement. The following table presents the amortized cost basis of loan modifications made to borrowers experiencing financial difficulty during three and six months ended June 30, 2023. % Payment of Delay Total Interest and Class of Term Rate Term Loans and (dollars in thousands) Extension Reduction Extension Total Leases Three Months Ended June 30, 2023 Commercial Commercial and Industrial $ 91 $ — $ — $ 91 0.01 % Commercial Mortgage — 952 — 952 0.03 % Total Commercial 91 952 — 1,043 0.02 % Consumer Residential Mortgage — — — — 0.00 % Home Equity — — — — 0.00 % Automobile 2,654 — — 2,654 0.30 % Other 1 215 — — 215 0.05 % Total Consumer 2,869 — — 2,869 0.03 % Total Loans and Leases $ 2,960 $ 952 $ — $ 3,912 0.03 % Six Months Ended June 30, 2023 Commercial Commercial and Industrial $ 91 $ — $ 6,695 $ 6,786 0.45 % Commercial Mortgage — 952 — 952 0.03 % Total Commercial 91 952 6,695 7,738 0.14 % Consumer Residential Mortgage 134 — — 134 0.00 % Home Equity 139 — — 139 0.01 % Automobile 4,411 — — 4,411 0.50 % Other 1 384 — — 384 0.09 % Total Consumer 5,068 — — 5,068 0.06 % Total Loans and Leases $ 5,159 $ 952 $ 6,695 $ 12,806 0.09 % 1 Comprised of other revolving credit, installment and lease financing. The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the three and six months ended June 30, 2023. Weighted-Average Weighted-Average Weighted-Average Months of Payment Interest Rate (dollars in thousands) Term Extension Deferral Reduction Three Months Ended June 30, 2023 Commercial Commercial Mortgage — $ — 2.50 % Consumer Automobile 23 — — Other 1 22 — — Six Months Ended June 30, 2023 Commercial Commercial and Industrial 6 $ 1,159 — % Commercial Mortgage — — 2.50 Consumer Residential Mortgage 58 — — Home Equity 64 — — Automobile 23 — — Other 1 22 — — 1 Comprised of other revolving credit, installment and lease financing. The following table presents the loan modifications made to borrowers experiencing financial difficulty that defaulted during the three and six months ended June 30, 2023. Term (dollars in thousands) Extension Total Three Months Ended June 30, 2023 Consumer Automobile 23 23 Other 1 15 15 Total Consumer 38 38 Total Loans and Leases $ 38 $ 76 Six Months Ended June 30, 2023 Consumer Automobile 23 23 Other 1 15 15 Total Consumer 38 38 Total Loans and Leases $ 38 $ 76 1 Comprised of other revolving credit, installment and lease financing. The following table presents the aging analysis of loan modifications made to borrowers experiencing financial difficulty as of June 30, 2023. (dollars in thousands) Current 30 - 59 60 - 89 Past Due Non- Total As of June 30, 2023 Commercial Commercial and Industrial $ 6,786 $ — $ — $ — $ — $ 6,786 Commercial Mortgage 952 — — — — 952 Total Commercial 7,738 — — — — 7,738 Consumer Residential Mortgage — — — — 134 134 Home Equity 139 — — — — 139 Automobile 4,061 327 — 23 — 4,411 Other 1 333 36 15 — — 384 Total Consumer 4,533 363 15 23 134 5,068 Total Loans and Leases 12,271 $ 363 $ 15 $ 23 $ 134 $ 12,806 1 Comprised of other revolving credit, installment and lease financing. The following table presents by loan class and year of origination, the gross charge-offs recorded during the three and six months ended June 30, 2023. (dollars in thousands) 2023 2022 2021 2020 2019 Prior Total Three Months Ended June 30, 2023 Commercial Commercial and Industrial $ 185 $ — $ — $ — $ — $ 18 $ 203 Total Commercial 185 — — — — 18 203 Consumer Residential Mortgage — — — — — 6 6 Home Equity — — — — — 5 5 Automobile — 558 238 107 173 217 1,293 Other 1 358 512 446 82 318 288 2,004 Total Consumer 358 1,070 684 189 491 516 3,308 Total $ 543 $ 1,070 $ 684 $ 189 $ 491 $ 534 $ 3,511 Six Months Ended June 30, 2023 Commercial Commercial and Industrial $ 185 $ 188 $ — $ — $ — $ 91 $ 464 Total Commercial 185 188 — — — 91 464 Consumer Residential Mortgage — — — — — 6 6 Home Equity — — — — — 55 55 Automobile — 872 745 335 364 640 2,956 Other 1 358 1,333 1,011 202 713 722 4,339 Total Consumer 358 2,205 1,756 537 1,077 1,423 7,356 Total $ 543 $ 2,393 $ 1,756 $ 537 $ 1,077 $ 1,514 $ 7,820 1 Comprised of other revolving credit, installment and lease financing. Foreclosure Proceedings Consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure totaled $ 5.4 million as of June 30, 2023 . |