| Allowance for Credit Losses and Credit Quality of Loans | 6.
Allowance for Credit Losses and Credit Quality of Loans The allowance for credit losses totaled $120.5 million
at June 30, 2024, compared to $114.4 million at December 31, 2023. The allowance for credit losses as a percentage of loans was 1.22% at June 30, 2024, compared to 1.19%
at December 31, 2023. The allowance for credit losses calculation incorporated a 6-quarter forecast period to account for forecast economic conditions under each scenario utilized in the measurement. For periods beyond the 6-quarter forecast, the model
reverts to long-term economic conditions over a 4-quarter reversion period on a straight-line basis. The Company considers a baseline, upside and downside economic forecast in measuring the allowance. The quantitative model as of June 30, 2024 incorporated a baseline economic outlook along with an alternative downside scenario
sourced from a reputable third-party to accommodate other potential economic conditions in the model. At June 30, 2024, the weightings were 80% and 20% for the baseline and downside economic forecasts, respectively. The baseline outlook
reflects an economic environment where the Northeast unemployment rate increases slightly from 4.0% to 4.1% during the forecast period. Northeast GDP’s annualized growth (on a quarterly basis) is expected to start the third quarter of 2024 at
approximately 3.7% and increase slightly to 3.8% before the end of the forecast period. Key assumptions in the baseline economic outlook included the Federal Reserve cutting rates with two 25 basis point cuts at the September and December
meetings, the economy remaining at full employment, and continued tapering of the Federal Reserve balance sheet. The alternative downside scenario assumed deteriorated economic conditions from the baseline outlook. Under this scenario,
Northeast unemployment rises from 4.0% in the second quarter of 2024 to a peak of 7.2% in the fourth quarter of 2025. These scenarios and their respective weightings are evaluated at each measurement date and reflect management’s expectations
as of June 30, 2024. Additional adjustments were made for factors not incorporated in the forecasts or the model, such as loss rate expectations for certain loan pools, considerations for inflation, and recent trends in asset value indices.
Additional monitoring for industry concentrations, loan growth, and policy exceptions was also conducted. The methodology for prepayment assumptions was revised during the second quarter of 2024 from a static, current rate experience approach to
one that includes both current experience and long-term average behavior. The change to the methodology increased the allowance for loan losses by approximately 3% as of June 30, 2024. The longer-average effective life portfolios such as the
residential mortgage and residential solar segments experienced a greater impact resulting from the change in methodology. The change in prepayment methodology provided an improved estimate of expected prepayments, particularly for the
longer-lived portfolios. The quantitative model as of March 31, 2024
incorporated a baseline economic outlook along with an alternative downside scenario sourced from a reputable third-party to accommodate other potential economic conditions in the model. At March 31, 2024, the weightings were 70% and 30% for
the baseline and downside economic forecasts, respectively. The baseline outlook reflected an economic environment where the unemployment rate increases slightly from 3.8% to 4.1% during the forecast period. Northeast GDP’s annualized growth
(on a quarterly basis) was expected to start the second quarter of 2024 at approximately 3.3% and decrease to 2.8% before increasing to 3.4% by the end of the forecast period. Key assumptions in the baseline economic outlook included the
Federal Reserve cutting rates with three 25 basis point cuts at the June, September, and December meetings, the economy remaining at full employment, and continued tapering of the Federal Reserve balance sheet. The alternative downside
scenario assumed deteriorated economic conditions from the baseline outlook. Under this scenario, national unemployment rises from 3.8% in the first quarter of 2024 to a peak of 7.7% in the second quarter of 2025. These scenarios and their
respective weightings are evaluated at each measurement date and reflect management’s expectations as of March 31, 2024. Additional adjustments were made for factors not incorporated in the forecasts or the model, such as loss rate
expectations for certain loan pools, considerations for inflation, and recent trends in asset value indices. Additional monitoring for industry concentrations, loan growth, and policy exceptions was also conducted. The quantitative model as of December 31, 2023
incorporated a baseline economic outlook along with an alternative downside scenario sourced from a reputable third-party to accommodate other potential economic conditions in the model. At December 31, 2023, the weightings were 70% and 30%
for the baseline and downside economic forecasts, respectively. The baseline outlook reflected an unemployment rate environment starting at 3.8% and increasing slightly during the forecast period to 4.1%. Northeast GDP’s annualized growth (on
a quarterly basis) was expected to start the first quarter of 2024 at approximately 3.7% before decreasing to a low of 2.9% in the third quarter of 2024 and then increasing to 3.8% by the end of the forecast period. Other utilized economic
variable forecasts are mixed compared to the prior year, with retail sales improving, business output mixed and housing starts down. Key assumptions in the baseline economic outlook included currently being in a full employment economy,
continued tapering of the Federal Reserve balance sheet and the FOMC beginning to cut rates in the second quarter of 2024. The alternative downside scenario assumed deteriorated economic conditions from the baseline outlook. Under this
scenario, Northeast unemployment increases to a peak of 7.0% in the first quarter of 2025. These scenarios and their respective weightings are evaluated at each measurement date and reflect management’s expectations as of December 31, 2023.
Additional qualitative adjustments were made for factors not incorporated in the forecasts or the model, such as loss rate expectations for certain loan pools, considerations for inflation and recent trends in asset value indices. Additional
monitoring for industry concentrations, loan growth and policy exceptions was also conducted. There were no loans purchased with
credit deterioration during the six months ended June 30, 2024. There were $219.5 million of PCD loans acquired from Salisbury during
the year ended December 31, 2023, which resulted in an allowance for credit losses at acquisition of $5.8 million. During the six
months ended June 30, 2024, the Company purchased $0.4 million of residential loans at a 7.0% premium with a $4 thousand allowance for credit losses
recorded for these loans. During 2023, the Company purchased $3.8 million of residential loans at a 7.0% premium with a $31 thousand
allowance for credit losses recorded for these loans. The Company made a policy election to report AIR in the other assets there was no The Company’s January 1, 2023 adoption of ASU 2022-02, Financial Instruments - CECL Losses (Topic 326): Troubled
Debt Restructurings and Vintage Disclosures The following tables present the activity in the allowance for credit losses by our portfolio segments:
(In thousands)
Commercial Loans
Consumer Loans
Residential
Total
Balance as of March 31, 2024
$
44,472
$
47,419
$
23,409
$
115,300
Charge-offs
(299
)
(5,328
)
-
(5,627
)
Recoveries
292
1,559
77
1,928
Provision
2,243
4,268
2,388
8,899
Ending balance as of June 30, 2024
$
46,708
$
47,918
$
25,874
$
120,500
Balance as of March 31, 2023
$
36,040
$
48,820
$
15,390
$
100,250
Charge-offs
(207
)
(4,837
)
(105
)
(5,149
)
Recoveries
97
1,441
155
1,693
Provision
1,033
2,459
114
3,606
Ending balance as of June 30 2023
$
36,963
$
47,883
$
15,554
$
100,400
(In thousands)
Commercial Loans
Consumer Loans
Residential
Total
Balance as of December
31, 2023
$
45,903
$
46,427
$
22,070
$
114,400
Charge-offs
(1,284
)
(10,909
)
(114
)
(12,307
)
Recoveries
490
3,210
229
3,929
Provision
1,599
9,190
3,689
14,478
Ending balance as of June 30
$
46,708
$
47,918
$
25,874
$
120,500
Balance as of January 1, 2023 (after adoption of ASU 2022-02)
$
34,662
$
50,951
$
14,539
$
100,152
Charge-offs
(376
)
(10,179
)
(444
)
(10,999
)
Recoveries
638
2,818
276
3,732
Provision
2,039
4,293
1,183
7,515
Ending balance as of June 30
$
36,963
$
47,883
$
15,554
$
100,400 The allowance for credit losses as of June 30, 2024 increased compared to the allowance estimates as of December 31, 2023 and March 31, 2024 primarily due to providing for the second quarter’s loan growth, the slowing of prepayment speed assumptions,
including the changes in prepayment model assumptions and an additional specific reserve established relating to a commercial relationship individually evaluated for credit The increase in
the allowance for credit losses from June 30, 2023 to June 30, 2024 was primarily due to providing for loan growth, slowing of prepayment speed assumptions and the recording of Individually Evaluated Loans The threshold for evaluating classified, commercial and commercial real estate loans risk graded substandard or doubtful, and nonperforming loans individually
evaluated for credit loss is $1.0 million. As of June n, with no allowance for credit loss. As of June 30, 2024 and December 31, 2023, there were $1.8 million and $17.3 million, respectively, of loans in nonaccrual status that were individually evaluated for expected credit loss without an allowance for credit
losses. The following table sets forth information with regard to past due and nonperforming loans by loan segment:
(In thousands)
31-60 Days Past Due Accruing
61-90 Days Past Due Accruing
Greater Than 90 Days Past Due Accruing
Total Past Due Accruing
Nonaccrual
Current
Recorded Total Loans
As of June 30 2024
Commercial loans:
C&I
$
929
$
1,149
$
12
$
2,090
$
2,586
$
1,454,003
$
1,458,679
CRE
790
238
-
1,028
18,357
3,534,517
3,553,902
Total commercial loans
$
1,719
$
1,387
$
12
$
3,118
$
20,943
$
4,988,520
$
5,012,581
Consumer loans:
Auto
$
9,653
$
1,735
$
995
$
12,383
$
2,079
$
1,179,800
$
1,194,262
Residential solar 4,038
1,356
1,043
6,437
122
855,324
861,883
Other consumer
1,523
960
787
3,270
259
134,602
138,131
Total consumer loans
$
15,214
$
4,051
$
2,825
$
22,090
$
2,460
$
2,169,726
$
2,194,276
Residential
$
3,312
$
903
$
496
$
4,711
$
11,352
$
2,631,427
$
2,647,490
Total loans
$
20,245
$
6,341
$
3,333
$
29,919
$
34,755
$
9,789,673
$
9,854,347
(In thousands)
31-60 Days Past Due Accruing
61-90 Days Past Due Accruing
Greater Than 90 Days Past Due Accruing
Total Past Due Accruing
Nonaccrual
Current
Recorded Total Loans
As of December 31, 2023
Commercial loans:
C&I
$
414
$
33
$
1
$
448
$
3,441
$
1,393,616
$
1,397,505
CRE
803
835
-
1,638
18,126
3,413,984
3,433,748
Total commercial loans
$
1,217
$
868
$
1
$
2,086
$
21,567
$
4,807,600
$
4,831,253
Consumer loans:
Auto
$
10,115
$
2,011
$
1,067
$
13,193
$
2,106
$
1,084,143
$
1,099,442
Residential solar 3,074 1,301 915 5,290 245 912,220
917,755
Other consumer
2,343
1,811
1,124
5,278
215
164,867
170,360
Total consumer loans
$
15,532
$
5,123
$
3,106
$
23,761
$
2,566
$
2,161,230
$
2,187,557
Residential
$
3,836
$
399
$
554
$
4,789
$
10,080
$
2,617,034
$
2,631,903
Total loans
$
20,585
$
6,390
$
3,661
$
30,636
$
34,213
$
9,585,864
$
9,650,713 Credit Quality Indicators The Company has developed an internal loan grading system to evaluate and quantify the Company’s loan portfolio with respect to quality and risk. The system focuses
on, among other things, financial strength of borrowers, experience and depth of borrower’s management, primary and secondary sources of repayment, payment history, nature of the business and outlook on particular industries. The internal grading
system enables the Company to monitor the quality of the entire loan portfolio on a consistent basis and provide management with an early warning system, which facilitates recognition and response to problem loans and potential problem loans. Commercial Grading System For C&I and CRE loans, the Company uses a grading system that relies on quantifiable and measurable characteristics when available. This includes comparison of
financial strength to available industry averages, comparison of transaction factors (loan terms and conditions) to loan policy and comparison of credit history to stated repayment terms and industry averages. Some grading factors are necessarily
more subjective such as economic and industry factors, regulatory environment and management. C&I and CRE loans are graded Doubtful, Substandard, Special Mention and Pass. Doubtful A Doubtful loan has a high probability of total or substantial loss, but because of specific pending events that may strengthen the asset, its
classification as a loss is deferred. Doubtful borrowers are usually in default, lack adequate liquidity or capital and lack the resources necessary to remain an operating entity. Pending events can include mergers, acquisitions, liquidations,
capital injections, the perfection of liens on additional collateral, the valuation of collateral and refinancing. Generally, pending events should be resolved within a relatively short period and the ratings will be adjusted based on the new
information. Nonaccrual treatment is required for Doubtful assets because of the high probability of loss. Substandard Substandard loans have a high probability of payment default or they have other well-defined weaknesses. They require more intensive supervision by
bank management. Substandard loans are generally characterized by current or expected unprofitable operations, inadequate debt service coverage, inadequate liquidity or marginal capitalization. Repayment may depend on collateral or other credit
risk mitigants. For some Substandard loans, the likelihood of full collection of interest and principal may be in doubt and those loans should be placed on nonaccrual. Although Substandard assets in the aggregate will have a distinct potential for
loss, an individual asset’s loss potential does not have to be distinct for the asset to be rated Substandard. Special Mention Special Mention
loans have potential weaknesses that may, if not checked or corrected, weaken the asset or inadequately protect the Company’s position at some future date. These loans pose elevated risk, but their weakness does not yet justify a Substandard
classification. Borrowers may be experiencing adverse operating trends (i.e., declining revenues or margins) or may be struggling with an ill-proportioned balance sheet (i.e., increasing inventory without an increase in sales, high leverage
and/or tight liquidity). Adverse economic or market conditions, such as interest rate increases or the entry of a new competitor, may also support a Special Mention rating. Although a Special Mention loan has a higher probability of default than
a Pass asset, its default is not imminent. Pass Loans graded as Pass encompass all loans not graded as Doubtful, Substandard or Special Mention. Pass loans are in compliance with loan covenants
and payments are generally made as agreed. Pass loans range from superior quality to fair quality. Pass loans also include any portion of a government guaranteed loan, including Paycheck Protection Program loans. Consumer and Residential Grading System Consumer and Residential loans are graded as either Nonperforming or Performing. Nonperforming Nonperforming loans are loans that are (1) over 90
days past due and interest is still accruing or (2) on nonaccrual status. Performing All loans not meeting any of the above criteria are considered Performing. The following tables illustrate the Company’s credit quality by loan class by vintage and includes gross charge-offs by loan class by vintage. Included in other consumer gross charge-offs for the six months ended June 30, 2024, .
(In thousands)
2024
2023
2022
2021
2020
Prior
Revolving Loans Amortized Cost Basis
Revolving Loans Converted to Term
Total
As of June 30 2024
C&I
By internally assigned grade:
Pass
$
149,845
$
199,272
$
219,561
$
207,165
$
136,993
$
115,577
$
338,577
$
13,847
$
1,380,837
Special mention
557
4,909
5,531
434
4,003
1,892
25,194
370
42,890
Substandard
332
3,800
2,295
1,631
250
5,997
20,381
137
34,823
Doubtful
-
99
1
19
-
10
-
-
129
Total C&I
$
150,734
$
208,080
$
227,388
$
209,249
$
141,246
$
123,476
$
384,152
$
14,354
$
1,458,679
Current-period gross charge-offs $ - $ (58 ) $ (915 ) $ (4 ) $ - $ (307 ) $ - $ - $ (1,284 )
CRE
By internally assigned grade:
Pass
$
231,892
$
358,866
$
492,938
$
523,952
$
432,230
$
975,497
$
311,534
$
54,559
$
3,381,468
Special mention
947
9,375
10,017
7,754
4,035
31,354
4,288
-
67,770
Substandard
-
2,163
18,890
17,926
3,290
61,121
1,274
-
104,664
Total CRE
$
232,839
$
370,404
$
521,845
$
549,632
$
439,555
$
1,067,972
$
317,096
$
54,559
$
3,553,902
Current-period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ -
Auto
By payment activity:
Performing
$
318,277
$
392,472
$
299,349
$
120,481
$
29,789
$
30,820
$
-
$
-
$
1,191,188
Nonperforming
151
1,004
847
732
158
182
-
-
3,074
Total auto
$
318,428
$
393,476
$
300,196
$
121,213
$
29,947
$
31,002
$
-
$
-
$
1,194,262
Current-period gross charge-offs $ (21 ) $ (591 ) $ (913 ) $ (499 ) $ (35 ) $ (225 ) $ - $ - $ (2,284 )
Residential solar
By payment activity:
Performing $ 1,803 $ 132,249 $ 413,160 $ 173,286 $ 61,333 $ 78,887 $ - $ - $ 860,718
Nonperforming - 123 742 160 60 80 - - 1,165
Total residential solar $ 1,803 $ 132,372 $ 413,902 $ 173,446 $ 61,393 $ 78,967 $ - $ - $ 861,883
Current-period gross charge-offs $ - $ (143 ) $ (2,036 ) $ (251 ) $ (34 ) $ (492 ) $ - $ - $ (2,956 )
Other consumer
By payment activity:
Performing
$
10,904
$
9,020
$
18,664
$
39,443
$
15,264
$
21,743
$
22,044
$
3
$
137,085
Nonperforming
-
12
127
422
167
297
13
8
1,046
Total other consumer
$
10,904
$
9,032
$
18,791
$
39,865
$
15,431
$
22,040
$
22,057
$
11
$
138,131
Current-period gross charge-offs $ (191 ) $ (270 ) $ (1,383 ) $ (2,749 ) $ (574 ) $ (502 ) $ - $ - $ (5,669 )
Residential
By payment activity:
Performing
$
86,396
$
250,760
$
335,011
$
442,457
$
258,291
$
989,436
$
253,709
$
19,582
$
2,635,642
Nonperforming
-
832
866
1,923
293
7,905
29
-
11,848
Total residential
$
86,396
$
251,592
$
335,877
$
444,380
$
258,584
$
997,341
$
253,738
$
19,582
$
2,647,490
Current-period gross charge-offs $ - $ - $ - $ - $ - $ (114 ) $ - $ - $ (114 )
Total loans
$
801,104
$
1,364,956
$
1,817,999
$
1,537,785
$
946,156
$
2,320,798
$
977,043
$
88,506
$
9,854,347
Current-period gross charge-offs $ (212 ) $ (1,062 ) $ (5,247 ) $ (3,503 ) $ (643 ) $ (1,640 ) $ - $ - $ (12,307 )
(In thousands)
2023
2022
2021
2020
2019
Prior
Revolving Loans Amortized Cost Basis
Revolving Loans Converted to Term
Total
As of December 31, 2023
C&I
By internally assigned grade:
Pass
$
229,249
$
270,796
$
241,993
$
158,051
$
74,469
$
63,826
$
299,248
$
2,923
$
1,340,555
Special mention
420
1,672
277
3,524
87
1,854
19,489
-
27,323
Substandard
1,496
2,461
1,609
282
2,266
5,632
14,266
1,607
29,619
Doubtful
-
1
2
-
4
1
-
-
8
Total C&I
$
231,165
$
274,930
$
243,881
$
161,857
$
76,826
$
71,313
$
333,003
$
4,530
$
1,397,505
Current-period gross charge-offs $ (24 ) $ (3,021 ) $ (5 ) $ (86 ) $ - $ (600 ) $ - $ - $ (3,736 )
CRE
By internally assigned grade:
Pass
$
353,161
$
518,201
$
561,897
$
452,110
$
327,804
$
739,189
$
294,039
$
33,705
$
3,280,106
Special mention
3,577
4,472
10,711
7,055
9,967
39,460
2,970
-
78,212
Substandard
370
731
21,807
1,146
2,996
37,418
10,962
-
75,430
Total CRE
$
357,108
$
523,404
$
594,415
$
460,311
$
340,767
$
816,067
$
307,971
$
33,705
$
3,433,748
Current-period gross charge-offs $ - $ - $ - $ - $ (114 ) $ (304 ) $ - $ - $ (418 )
Auto
By payment activity:
Performing
$
474,369
$
363,516
$
157,251
$
42,644
$
45,406
$
13,071
$
12
$
-
$
1,096,269
Nonperforming
532
1,241
830
190
306
74
-
-
3,173
Total auto
$
474,901
$
364,757
$
158,081
$
42,834
$
45,712
$
13,145
$
12
$
-
$
1,099,442
Current-period gross charge-offs $ (102 ) $ (1,183 ) $ (1,066 ) $ (340 ) $ (301 ) $ (295 ) $ - $ - $ (3,287 )
Residential solar
By payment activity:
Performing $ 155,425 $ 430,855 $ 178,839 $ 65,382 $ 46,554 $ 39,540 $ - $ - $ 916,595
Nonperforming - 837 205 18 47 53 - - 1,160
Total residential solar $ 155,425 $ 431,692 $ 179,044 $ 65,400 $ 46,601 $ 39,593 $ - $ - $ 917,755
Current-period gross charge-offs $ (150 ) $ (1,930 ) $ (923 ) $ (45 ) $ (558 ) $ (345 ) $ - $ - $ (3,951 )
Other consumer
By payment activity:
Performing
$
13,089
$
27,394
$
57,876
$
21,087
$
14,548
$
15,964
$
19,042
$
21
$
169,021
Nonperforming
-
244
685
144
56
161
4
45
1,339
Total other consumer
$
13,089
$
27,638
$
58,561
$
21,231
$
14,604
$
16,125
$
19,046
$
66
$
170,360
Current-period gross charge-offs $ (885 ) $ (3,744 ) $ (7,511 ) $ (1,329 ) $ (832 ) $ (568 ) $ - $ - $ (14,869 )
Residential
By payment activity:
Performing
$
212,799
$
366,860
$
453,206
$
267,845
$
167,860
$
876,563
$
260,836
$
15,300
$
2,621,269
Nonperforming
134
430
1,121
385
591
7,460
-
513
10,634
Total residential
$
212,933
$
367,290
$
454,327
$
268,230
$
168,451
$
884,023
$
260,836
$
15,813
$
2,631,903
Current-period gross charge-offs $ - $ - $ (81 ) $ (30 ) $ - $ (406 ) $ - $ - $ (517 )
Total loans
$
1,444,621
$
1,989,711
$
1,688,309
$
1,019,863
$
692,961
$
1,840,266
$
920,868
$
54,114
$
9,650,713
Current-period gross charge-offs $ (1,161 ) $ (9,878 ) $ (9,586 ) $ (1,830 ) $ (1,805 ) $ (2,518 ) $ - $ - $ (26,778 ) Allowance for Credit Losses on Off-Balance Sheet Credit Exposures The allowance for losses on unfunded commitments totaled $4.3
million as of June 30, 2024, compared to $5.1 million as of December 31, 2023. Loan Modifications to Borrowers Experiencing Financial Difficulties When the Company modifies a loan with financial difficulty, such modifications generally include one or a combination of
the following: an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; a change in scheduled payment amount; or principal forgiveness. The following table shows the amortized cost basis at the end of the reporting period of the loans modified to borrowers experiencing financial difficulty,
disaggregated by class of financing receivable and type of concession granted:
Three Months Ended June 30, 2024
Term Extension
Combination - Term Extension and Interest Rate
(Dollars in thousands)
Amortized Cost
% of Total Class of Financing Receivables
Amortized Cost
% of Total Class of Financing Receivables
Residential
$
184 0.007 % $ 30 0.001 %
Total
$
184 $ 30
Three Months Ended June 30, 2023
Term Extension
Combination - Term Extension and Interest Rate Reduction
(Dollars in thousands)
Amortized Cost
% of Total Class of Financing Receivables
Amortized Cost
% of Total Class of Financing Receivables
Residential
$
199 0.009 % $ 171 0.008 %
Total
$
199 $ 171
Six Months Ended June 30, 2024
Term Extension
Combination - Term Extension and Interest Rate Reduction
(Dollars in thousands)
Amortized Cost
% of Total Class of Financing Receivables
Amortized Cost
% of Total Class of Financing Receivables
Residential
$
478 0.018 % $ 30 0.001 %
Total
$
478 $ 30
Six Months Ended June 30, 2023
Term Extension
Combination - Term Extension and Interest Rate Reduction
(Dollars in thousands)
Amortized Cost
% of Total Class of Financing Receivables
Amortized Cost
% of Total Class of Financing Receivables
Residential
$
242 0.011 % $ 171 0.008 %
Total
$
242 $ 171 The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulties:
Three Months Ended June 30, 2024
Loan Type
Term Extension
Interest Rate Reduction
Residential
Added a weighted-average 5.3 years to the life of loans, which reduced monthly payment amounts for the borrowers
Interest Rates were reduced by an average of one percent
Three Months Ended June 30, 2023
Loan Type
Term Extension
Interest Rate Reduction
Residential
Added a weighted-average 10 years to the life of loans, which reduced monthly payment amounts for the borrowers
Interest Rates were reduced by an average of three and a half percent
Six Months Ended June 30, 2024
Loan Type
Term Extension
Interest Rate Reduction
Residential
Added a weighted-average 6.3 years to the life of loans, which reduced monthly payment amounts for the borrowers
Interest Rates were reduced by an average of one percent
Six Months Ended June 30,
2023
Loan Type
Term Extension
Interest Rate Reduction
Residential
Added a weighted-average 14 years to the life of loans, which reduced monthly payment amounts for the borrowers
Interest Rates were reduced by an average of three and a half percent The following
table depicts the financing receivables that had a payment default that were modified to borrowers experiencing financial difficulty in the previous 12 months:
Three and Six Months Ended
June 30, 2024
(In thousands)
Amortized Cost Basis of Modified Financing Receivables that Subsequently Defaulted
Term Extension
Residential
$
171
Total
$
171 There were no financing receivables that had a payment default during the three and six months ended June 30,
2023, that were modified to borrowers experiencing financial difficulty that were modified in the twelve months prior to that default. The following table depicts the performance of loans that have been modified to borrowers experiencing financial difficulty that were modified in
the prior twelve months:
Payment Status (Amortized Cost Basis)
(In thousands)
Current
31-60 Days Past Due
61-90 Days Past Due
Greater than 90 Days Past Due
As of June 30, 2024
Residential
$
567
$
120
$
-
$
78
Total
$
567
$
120
$
-
$
78 |
