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, 2024 and December 31, 2023: (dollars in thousands) June 30, December 31, Commercial Commercial and Industrial $ 1,691,441 $ 1,652,699 Paycheck Protection Program 7,997 11,369 Commercial Mortgage 3,741,140 3,749,016 Construction 315,571 304,463 Lease Financing 59,388 59,939 Total Commercial 5,815,537 5,777,486 Consumer Residential Mortgage 4,595,586 4,684,171 Home Equity 2,221,073 2,264,827 Automobile 806,240 837,830 Other 1 392,830 400,712 Total Consumer 8,015,729 8,187,540 Total Loans and Leases $ 13,831,266 $ 13,965,026 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. The Company elected to exclude AIR from the amortized cost basis of loans disclosed throughout this footnote. As of June 30, 2024 and December 31, 2023 , AIR for loans totaled $ 49.6 million and $ 48.4 million, respectively. AIR is included in the Accrued Interest Receivable line item on the Company’s unaudited 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, 2024 and June 30, 2023. (dollars in thousands) Commercial Consumer Total Three Months Ended June 30, 2024 Allowance for Credit Losses: Balance at Beginning of Period $ 75,087 $ 72,577 $ 147,664 Loans and Leases Charged-Off ( 875 ) ( 3,955 ) ( 4,830 ) Recoveries on Loans and Leases Previously Charged-Off 263 1,174 1,437 Net Loans and Leases Charged-Off ( 612 ) ( 2,781 ) ( 3,393 ) Provision for Credit Losses 5,610 ( 2,404 ) 3,206 Balance at End of Period $ 80,085 $ 67,392 $ 147,477 Six Months Ended June 30, 2024 Allowance for Credit Losses: Balance at Beginning of Period $ 74,074 $ 72,329 $ 146,403 Loans and Leases Charged-Off ( 1,235 ) ( 7,350 ) ( 8,585 ) Recoveries on Loans and Leases Previously Charged-Off 379 2,532 2,911 Net Loans and Leases Charged-Off ( 856 ) ( 4,818 ) ( 5,674 ) Provision for Credit Losses 6,867 ( 119 ) 6,748 Balance at End of Period $ 80,085 $ 67,392 $ 147,477 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 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 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 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 generally 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 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 warrant 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 applicable collateral, 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 (excluding residential mortgage and home equity loans which meet the criteria for being considered Pass). 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 in the commercial portfolio, most risk ratings are certified at a minimum annually. For Special Mention or Classified credits in the commercial portfolio, 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, 2024. Term Loans by Origination Year (dollars in thousands) 2024 2 2023 2022 2021 2020 Prior Revolving Revolving Total Loans June 30, 2024 Commercial Commercial and Industrial Pass $ 187,066 $ 310,799 $ 266,769 $ 199,023 $ 138,826 $ 94,975 $ 385,181 $ 332 $ 1,582,971 Special Mention — 5,403 985 — — — 46,155 — 52,543 Classified 310 11,131 4,403 6,414 6,624 8,898 18,138 9 55,927 Total Commercial and Industrial $ 187,376 $ 327,333 $ 272,157 $ 205,437 $ 145,450 $ 103,873 $ 449,474 $ 341 $ 1,691,441 Paycheck Protection Program Pass $ — $ — $ — $ 674 $ 7,323 $ — $ — $ — $ 7,997 Total Paycheck Protection Program $ — $ — $ — $ 674 $ 7,323 $ — $ — $ — $ 7,997 Commercial Mortgage Pass $ 155,718 $ 648,625 $ 1,012,133 $ 655,550 $ 411,613 $ 624,429 $ 43,802 $ — $ 3,551,870 Special Mention 32,508 60,167 7,775 3,405 2,985 20,208 — — 127,048 Classified 864 5,035 18,703 3,197 19,955 14,468 — — 62,222 Total Commercial Mortgage $ 189,090 $ 713,827 $ 1,038,611 $ 662,152 $ 434,553 $ 659,105 $ 43,802 $ — $ 3,741,140 Construction Pass $ 60,012 $ 106,472 $ 130,383 $ 1,119 $ 1,302 $ — $ 13,789 $ — $ 313,077 Classified — — 2,494 — — — — — 2,494 Total Construction $ 60,012 $ 106,472 $ 132,877 $ 1,119 $ 1,302 $ — $ 13,789 $ — $ 315,571 Lease Financing Pass $ 9,400 $ 8,952 $ 10,874 $ 11,492 $ 6,860 $ 10,607 $ — $ — $ 58,185 Classified — 546 44 101 80 432 — — 1,203 Total Lease Financing $ 9,400 $ 9,498 $ 10,918 $ 11,593 $ 6,940 $ 11,039 $ — $ — $ 59,388 Total Commercial $ 445,878 $ 1,157,130 $ 1,454,563 $ 880,975 $ 595,568 $ 774,017 $ 507,065 $ 341 $ 5,815,537 Consumer Residential Mortgage Pass $ 98,131 $ 280,798 $ 769,750 $ 1,209,436 $ 945,064 $ 1,289,122 $ — $ — $ 4,592,301 Classified — — — 426 745 2,114 — — 3,285 Total Residential Mortgage $ 98,131 $ 280,798 $ 769,750 $ 1,209,862 $ 945,809 $ 1,291,236 $ — $ — $ 4,595,586 Home Equity Pass $ — $ — $ — $ — $ — $ 42 $ 2,166,689 $ 52,061 $ 2,218,792 Classified — — — — — — 1,580 701 2,281 Total Home Equity $ — $ — $ — $ — $ — $ 42 $ 2,168,269 $ 52,762 $ 2,221,073 Automobile Pass $ 114,159 $ 221,749 $ 255,025 $ 121,413 $ 48,684 $ 44,641 $ — $ — $ 805,671 Classified 67 160 124 116 1 101 — — 569 Total Automobile $ 114,226 $ 221,909 $ 255,149 $ 121,529 $ 48,685 $ 44,742 $ — $ — $ 806,240 Other1 Pass $ 66,544 $ 87,656 $ 118,392 $ 70,624 $ 8,530 $ 39,820 $ 541 $ — $ 392,107 Classified 40 115 234 142 21 171 — — 723 Total Other $ 66,584 $ 87,771 $ 118,626 $ 70,766 $ 8,551 $ 39,991 $ 541 $ — $ 392,830 Total Consumer $ 278,941 $ 590,478 $ 1,143,525 $ 1,402,157 $ 1,003,045 $ 1,376,011 $ 2,168,810 $ 52,762 $ 8,015,729 Total Loans and Leases $ 724,819 $ 1,747,608 $ 2,598,088 $ 2,283,132 $ 1,598,613 $ 2,150,028 $ 2,675,875 $ 53,103 $ 13,831,266 1. Comprised of other revolving credit, installment, and lease financing. 2. Loans reported as Special Mention and Classified in the 2024 column represent renewal of loans that originated in an earlier period. For the six months ended June 30, 2024 , $ 7.2 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, 2023. Term Loans by Origination Year (dollars in thousands) 2023 2 2022 2021 2020 2019 Prior Revolving Revolving Total Loans December 31, 2023 Commercial Commercial and Industrial Pass $ 319,451 $ 294,142 $ 229,286 $ 148,575 $ 40,696 $ 77,789 $ 380,524 $ 450 $ 1,490,913 Special Mention 50,792 5,555 — — 657 — 39,278 — 96,282 Classified 11,790 5,846 8,928 6,625 — 9,199 23,103 13 65,504 Total Commercial and Industrial $ 382,033 $ 305,543 $ 238,214 $ 155,200 $ 41,353 $ 86,988 $ 442,905 $ 463 $ 1,652,699 Paycheck Protection Program Pass $ — $ — $ 2,199 $ 9,170 $ — $ — $ — $ — $ 11,369 Total Paycheck Protection Program $ — $ — $ 2,199 $ 9,170 $ — $ — $ — $ — $ 11,369 Commercial Mortgage Pass $ 788,558 $ 1,043,472 $ 679,258 $ 432,896 $ 244,767 $ 419,225 $ 41,292 $ — $ 3,649,468 Special Mention 30,356 18,636 — 3,875 — 9,153 — — 62,020 Classified 5,829 155 3,724 13,112 535 14,173 — — 37,528 Total Commercial Mortgage $ 824,743 $ 1,062,263 $ 682,982 $ 449,883 $ 245,302 $ 442,551 $ 41,292 $ — $ 3,749,016 Construction Pass $ 77,163 $ 149,183 $ 50,996 $ — $ 16,009 $ — $ 9,777 $ — $ 303,128 Special Mention — — — 1,335 — — — — 1,335 Total Construction $ 77,163 $ 149,183 $ 50,996 $ 1,335 $ 16,009 $ — $ 9,777 $ — $ 304,463 Lease Financing Pass $ 9,867 $ 13,409 $ 13,795 $ 8,493 $ 5,385 $ 7,650 $ — $ — $ 58,599 Classified 600 51 117 94 — 478 — — 1,340 Total Lease Financing $ 10,467 $ 13,460 $ 13,912 $ 8,587 $ 5,385 $ 8,128 $ — $ — $ 59,939 Total Commercial $ 1,294,406 $ 1,530,449 $ 988,303 $ 624,175 $ 308,049 $ 537,667 $ 493,974 $ 463 $ 5,777,486 Consumer Residential Mortgage Pass $ 297,532 $ 796,979 $ 1,249,917 $ 977,377 $ 303,098 $ 1,057,267 $ — $ — $ 4,682,170 Classified — — 426 — — 1,575 — — 2,001 Total Residential Mortgage $ 297,532 $ 796,979 $ 1,250,343 $ 977,377 $ 303,098 $ 1,058,842 $ — $ — $ 4,684,171 Home Equity Pass $ — $ — $ — $ — $ — $ 43 $ 2,215,970 $ 46,794 $ 2,262,807 Classified — — — — — — 1,229 791 2,020 Total Home Equity $ — $ — $ — $ — $ — $ 43 $ 2,217,199 $ 47,585 $ 2,264,827 Automobile Pass $ 250,380 $ 301,968 $ 149,915 $ 64,734 $ 46,396 $ 24,038 $ — $ — $ 837,431 Classified 84 108 11 46 72 78 — — 399 Total Automobile $ 250,464 $ 302,076 $ 149,926 $ 64,780 $ 46,468 $ 24,116 $ — $ — $ 837,830 Other 1 Pass $ 102,563 $ 141,421 $ 92,312 $ 13,074 $ 16,897 $ 32,519 $ 1,277 $ — $ 400,063 Classified 65 224 165 22 93 80 — — 649 Total Other $ 102,628 $ 141,645 $ 92,477 $ 13,096 $ 16,990 $ 32,599 $ 1,277 $ — $ 400,712 Total Consumer $ 650,624 $ 1,240,700 $ 1,492,746 $ 1,055,253 $ 366,556 $ 1,115,600 $ 2,218,476 $ 47,585 $ 8,187,540 Total Loans and Leases $ 1,945,030 $ 2,771,149 $ 2,481,049 $ 1,679,428 $ 674,605 $ 1,653,267 $ 2,712,450 $ 48,048 $ 13,965,026 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 year ended December 31, 2023 , $ 13.2 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, 2024 and December 31, 2023. (dollars in thousands) 30 - 59 60 - 89 Past Due Non- Total Current Total Non- 2 As of June 30, 2024 Commercial Commercial and Industrial $ 838 $ 3,388 $ — $ 3,681 $ 7,907 $ 1,683,534 $ 1,691,441 $ 10 Paycheck Protection Program — — — — — 7,997 7,997 — Commercial Mortgage 230 — — 2,601 2,831 3,738,309 3,741,140 2,601 Construction — — — — — 315,571 315,571 — Lease Financing — — — — — 59,388 59,388 — Total Commercial 1,068 3,388 — 6,282 10,738 5,804,799 5,815,537 2,611 Consumer Residential Mortgage 2,760 1,588 4,524 2,998 11,870 4,583,716 4,595,586 — Home Equity 4,785 2,994 2,025 3,227 13,031 2,208,042 2,221,073 835 Automobile 11,674 1,214 568 — 13,456 792,784 806,240 — Other 1 1,995 1,022 733 — 3,750 389,080 392,830 — Total Consumer 21,214 6,818 7,850 6,225 42,107 7,973,622 8,015,729 835 Total $ 22,282 $ 10,206 $ 7,850 $ 12,507 $ 52,845 $ 13,778,421 $ 13,831,266 $ 3,446 As of December 31, 2023 Commercial Commercial and Industrial $ 6,748 $ 514 $ — $ 39 $ 7,301 $ 1,645,398 $ 1,652,699 $ 36 Paycheck Protection Program — — — — — 11,369 11,369 — Commercial Mortgage — — — 2,884 2,884 3,746,132 3,749,016 2,884 Construction — — — — — 304,463 304,463 — Lease Financing — — — — — 59,939 59,939 — Total Commercial 6,748 514 — 2,923 10,185 5,767,301 5,777,486 2,920 Consumer Residential Mortgage 4,547 317 3,814 2,935 11,613 4,672,558 4,684,171 867 Home Equity 4,210 1,967 1,734 3,791 11,702 2,253,125 2,264,827 1,101 Automobile 13,242 1,478 399 — 15,119 822,711 837,830 — Other 1 1,968 1,019 648 — 3,635 397,077 400,712 — Total Consumer 23,967 4,781 6,595 6,726 42,069 8,145,471 8,187,540 1,968 Total $ 30,715 $ 5,295 $ 6,595 $ 9,649 $ 52,254 $ 13,912,772 $ 13,965,026 $ 4,888 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, 2024 and December 31, 2023. June 30, 2024 December 31, 2023 (dollars in thousands) Non-accrual Non-accrual Total Non- Non-accrual Non-accrual Total Non- Commercial Commercial and Industrial $ 3,681 $ — $ 3,681 $ 39 $ — $ 39 Commercial Mortgage — 2,601 2,601 — 2,884 2,884 Total Commercial 3,681 2,601 6,282 39 2,884 2,923 Consumer Residential Mortgage 2,998 — 2,998 2,935 — 2,935 Home Equity 3,227 — 3,227 3,791 — 3,791 Total Consumer 6,225 — 6,225 6,726 — 6,726 Total $ 9,906 $ 2,601 $ 12,507 $ 6,765 $ 2,884 $ 9,649 All payments received while on non-accrual status are applied against the principal balance of the loan or lease. Income, if any, is recognized on a cash basis. 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, other-than-insignificant payment delay, or combination thereof. These modifications extend the term of the loan, lower the payment amount, or results in an other-than-insignificant payment delay 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, 2024 and June 30, 2023. % Payment of Delay Total Interest and Class of Term Rate Term Payment Loans and (dollars in thousands) Extension Reduction Extension 1 Delay Total Leases Three Months Ended June 30, 2024 Consumer Home Equity $ — $ — $ — $ 537 $ 537 0.02 % Automobile 4,795 — 383 — 5,178 0.64 % Other 2 567 — 61 — 628 0.16 % Total Consumer 5,362 — 444 537 6,343 0.08 % Total Loans and Leases $ 5,362 $ — $ 444 $ 537 $ 6,343 0.05 % Six Months Ended June 30, 2024 Commercial Commercial and Industrial $ 24 $ — $ 4,841 $ — $ 4,865 0.29 % Total Commercial 24 — 4,841 — 4,865 0.08 % Consumer Residential Mortgage — — — 14,282 14,282 0.31 % Home Equity — — — 1,147 1,147 0.05 % Automobile 8,927 — 1,003 — 9,930 1.23 % Other 2 957 — 148 — 1,105 0.28 % Total Consumer 9,884 — 1,151 15,429 26,464 0.33 % Total Loans and Leases $ 9,908 $ — $ 5,992 $ 15,429 $ 31,329 0.23 % 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 Automobile 2,654 — — — 2,654 0.30 % Other 2 215 — — — 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 2 384 — — — 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. Includes forbearance plans. 2. 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, 2024 and June 30, 2023. Weighted-Average Weighted-Average Weighted-Average Months of Payment Interest Rate (dollars in thousands) Term Extension Deferral 1 Reduction Three Months Ended June 30, 2024 Consumer Home Equity — $ 10 — % Automobile 22 2 — Other 2 22 1 — Six Months Ended June 30, 2024 Commercial Commercial and Industrial 12 $ 593 — % Consumer Residential Mortgage — 13 — Home Equity — 7 — Automobile 22 2 — Other 2 20 1 — Three Months Ended June 30, 2023 Commercial Commercial Mortgage — $ — 2.50 % Consumer Automobile 23 — — Other 2 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 2 22 — — 1 Includes forbearance plans. 2 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, 2024 and June 30, 2023. Term Payment Delay & (dollars in thousands) Extension Term Extension 1 Total Three Months Ended June 30, 2024 Commercial Commercial and Industrial $ — $ 34 $ 34 Total Commercial — 34 34 Consumer Automobile 428 11 439 Other 2 121 12 133 Total Consumer 549 23 572 Total Loans and Leases $ 549 $ 57 $ 606 Six Months Ended June 30, 2024 Commercial Commercial and Industrial $ — $ 34 $ 34 Total Commercial — 34 34 Consumer Automobile 668 11 679 Other 2 172 12 184 Total Consumer 840 23 863 Total Loans and Leases $ 840 $ 57 $ 897 Three Months Ended June 30, 2023 Consumer Automobile $ 23 $ — 23 Other 2 15 — 15 Total Consumer 38 — 38 Total Loans and Leases 3 $ 38 $ — $ 38 Six Months Ended June 30, 2023 Consumer Automobile $ 23 $ — 23 Other 2 15 — 15 Total Consumer 38 — 38 Total Loans and Leases 3 $ 38 $ — $ 38 1. Includes forbearance plans. 2. Comprised of other revolving credit, installment, and lease financing. 3. The amounts presented in the total column have been updated to properly reflect the total modifications during the period. The following table presents the aging analysis of loan modifications made to borrowers experiencing financial difficulty as of June 30, 2024 and June 30, 2023. (dollars in thousands) Current 30 - 59 60 - 89 Past Due Non- Total As of June 30, 2024 Commercial Commercial and Industrial $ 4,865 $ — $ — $ — $ — $ 4,865 Total Commercial 4,865 — — — — 4,865 Consumer Residential Mortgage 14,282 — — — — 14,282 Home Equity 1,147 — — — — 1,147 Automobile 8,887 998 46 — — 9,931 Other 1 1,013 43 29 19 — 1,104 Total Consumer 25,329 1,041 75 19 — 26,464 Total Loans and Leases $ 30,194 $ 1,041 $ 75 $ 19 $ — $ 31,329 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, 2024 and June 30, 2023. (dollars in thousands) 2024 2023 2022 2021 2020 Prior Total Three Months Ended June 30, 2024 Commercial Commercial and Industrial $ 113 $ — $ — $ 663 $ — $ 99 $ 875 Total Commercial 113 — — 663 — 99 875 Consumer Residential Mortgage — — — — — 48 48 Home Equity — 150 — — — 52 202 Automobile — 314 274 257 61 189 1,095 Other 1 333 468 851 470 65 423 2,610 Total Consumer 333 932 1,125 727 126 712 3,955 Total $ 446 $ 932 $ 1,125 $ 1,390 $ 126 $ 811 $ 4,830 Six Months Ended June 30, 2024 Commercial Commercial and Industrial $ 113 $ 281 $ — $ 664 $ — $ 177 $ 1,235 Total Commercial 113 281 — 664 — 177 1,235 Consumer Residential Mortgage — — — — — 48 48 Home Equity — 150 35 — — 52 237 Automobile — 578 637 376 115 437 2,143 Other 1 333 1,137 1,504 917 182 849 4,922 Total Consumer 333 1,865 2,176 1,293 297 1,386 7,350 Total $ 446 $ 2,146 $ 2,176 $ 1,957 $ 297 $ 1,563 $ 8,585 (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 $ 4.1 million as of June 30, 2024 . |