| Loans and Allowance for Credit Losses | Note 2. Loans and Allowance for Credit Losses Loans — Loans are reported at their outstanding principal balances less unearned income, the allowance for credit losses and any deferred fees or costs on originated loans. Interest income on loans is accrued based on the principal balance outstanding. Loan origination fees, net of certain loan origination costs, are deferred and recognized as an adjustment to the related loan yield using a method which approximates the interest method. For financial reporting purposes, the Company classifies its loan portfolio based on the underlying collateral utilized to secure each loan. This classification is consistent with that utilized in the Quarterly Report of Condition and Income filed by the Bank with the Federal Deposit Insurance Corporation (“FDIC”). The following schedule details the loans of the Compan y at June 30, 2024 and December 31, 2023:
(In Thousands)
June 30, 2024 December 31, 2023
Residential 1-4 family real estate $ 1,032,004 $ 959,218
Commercial and multi-family real estate 1,381,335 1,313,284
Construction, land development and farmland 896,310 901,336
Commercial, industrial and agricultural 122,368 127,659
1-4 family equity lines of credit 229,259 202,731
Consumer and other 109,174 104,373
Total loans before net deferred loan fees 3,770,450 3,608,601
Net deferred loan fees ( 13,044 ) ( 13,078 )
Total loans 3,757,406 3,595,523
Less: Allowance for credit losses ( 44,661 ) ( 44,848 )
Net loans 3,712,745 $ 3,550,675 Risk characteristics relevant to each portfolio segment are as follows: Construction, land development and farmland: Loans for non-owner-occupied real estate construction or land development are generally repaid through cash flow related to the operation, sale or refinance of the property. The Company also finances construction loans for owner-occupied properties. A portion of the Company’s construction and land portfolio segment is comprised of loans secured by residential product types (residential land and single-family construction). Construction and land development loans are underwritten utilizing independent appraisal reviews, sensitivity analysis of absorption and lease rates, market sales activity, and financial analysis of the developers and property owners. Construction loans generally rely on estimates of project costs and the anticipated value of the completed project, while the Company strives to ensure the accuracy of these estimates, it is possible for these estimates to be inaccurate. Construction loans often involve the disbursement of substantial funds with repayments substantially dependent on the success of the ultimate project. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, the value of the completed project, general economic conditions and the availability of long-term financing. Residential 1-4 family real estate: Residential real estate loans represent loans to consumers or investors to finance a residence. These loans are typically financed on 15 to 30 year amortization terms, but generally with shorter maturities of 5 to 15 years. Many of these loans are extended to borrowers to finance their primary or secondary residence. Loans to an investor secured by a 1-4 family residence will be repaid from either the rental income from the property or from the sale of the property. This loan segment also includes closed-end home equity loans that are secured by a first or second mortgage on the borrower’s residence. This allows customers to borrow against the equity in their home. Loans in this portfolio segment are underwritten and approved based on a number of credit quality criteria including limits on maximum Loan-to-Value ("LTV") ratios, minimum credit scores, and maximum debt to income ratios. Real estate market values as of the time the loan is made directly affect the amount of credit extended and, in addition, changes in these residential property values impact the depth of potential losses in this portfolio segment. 1-4 family equity lines of credit: This loan segment includes open-end home equity loans that are secured by a first or second mortgage on the borrower’s residence. This allows customers to borrow against the equity in their home utilizing a revolving line of credit. These loans are underwritten and approved based on a number of credit quality criteria including limits on maximum LTV ratios, minimum credit scores, and maximum debt to income ratios. Real estate market values as of the time the loan is made directly affect the amount of credit extended and, in addition, changes in these residential property values impact the depth of potential losses in this portfolio segment. Because of the revolving nature of these loans, as well as the fact that many represent second mortgages, this portfolio segment can contain more risk than the amortizing 1-4 family residential real estate loans. Commercial and multi-family real estate: Multi-family and commercial real estate loans are subject to underwriting standards and processes similar to commercial and industrial loans, in addition to those of real estate loans. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally largely dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s commercial real estate portfolio are diverse in terms of type. This diversity helps reduce the Company’s exposure to adverse economic events that affect any single market or industry. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. The Company also utilizes third-party experts to provide insight and guidance about economic conditions and trends affecting the market areas it serves. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner occupied commercial real estate loans. Non-owner occupied commercial real estate loans are loans secured by multifamily and commercial properties where the primary source of repayment is derived from rental income associated with the property (that is, loans for which 50 percent or more of the source of repayment comes from third party, nonaffiliated, rental income) or the proceeds of the sale, refinancing, or permanent financing of the property. These loans are made to finance income-producing properties such as apartment buildings, office and industrial buildings, and retail properties. Owner-occupied commercial real estate loans are loans where the primary source of repayment is the cash flow from the ongoing operations and business activities conducted by the party, or affiliate of the party, who owns the property. Commercial, industrial, and agricultural: The commercial, industrial, and agricultural loan portfolio segment includes commercial, industrial, and agricultural loans to commercial customers for use in normal business operations to finance working capital needs, equipment purchases or other expansion projects. Collection risk in this portfolio is driven by the creditworthiness of underlying borrowers, particularly cash flow from customers’ business operations. Commercial, industrial, and agricultural loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower, if any. The cash flows of borrowers, however, may not be as expected and any collateral securing these loans may fluctuate in value. Most commercial, industrial, and agricultural loans are secured by the assets being financed or other business assets such as accounts receivable, inventory, crops, or livestock and usually incorporate a personal guarantee; however, some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Consumer: The consumer loan portfolio segment includes non-real estate secured direct loans to consumers for household, family, and other personal expenditures. Consumer loans may be secured or unsecured and are usually structured with short or medium term maturities. These loans are underwritten and approved based on a number of consumer credit quality criteria including limits on maximum LTV ratios on secured consumer loans, minimum credit scores, and maximum debt to income ratios. Many traditional forms of consumer installment credit have standard monthly payments and fixed repayment schedules of one to five years . These loans are made with either fixed or variable interest rates that are based on specific indices. Installment loans fill a variety of needs, such as financing the purchase of an automobile, a boat, a recreational vehicle or other large personal items, or for consolidating debt. These loans may be unsecured or secured by an assignment of title, as in an automobile loan, or by money in a bank account. In addition to consumer installment loans, this portfolio segment also includes secured and unsecured personal lines of credit as well as overdraft protection lines. Loans in this portfolio segment are sensitive to unemployment and other key consumer economic measures. Allowance For Credit Losses ("ACL") - Loans. The allowance for credit losses on loans is a contra-asset valuation account, calculated in accordance with Accounting Standards Codification ("ASC") Topic 326 ("ASC 326") Financial Instruments-Credit Losses, that is deducted from the amortized cost basis of loans to present the net amount expected to be collected. The amount of the allowance represents management's best estimate of current expected credit losses on loans considering available information from internal and external sources, relevant to assessing collectability over the loans' contractual terms, adjusted for expected prepayments when appropriate. Relevant available information includes historical credit loss experience, current conditions and reasonable and supportable forecasts. While historical credit loss experience provides the basis for the estimation of expected credit losses, adjustments to historical loss information may be made for differences in current portfolio-specific risk characteristics, environmental conditions or other relevant factors. The allowance for credit losses is measured on a collective basis for portfolios of loans when similar risk characteristics exist. Loans that do not share risk characteristics are evaluated for expected credit losses on an individual basis and excluded from the collective evaluation. Expected credit losses for collateral dependent loans are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. The Company’s discounted cash flow methodology incorporates a probability of default and loss given default model, as well as expectations of future economic conditions, using reasonable and supportable forecasts. Together, the probability of default and loss given default model with the use of reasonable and supportable forecasts generate estimates for cash flows expected and not expected to be collected over the estimated life of a loan. Estimates of future expected cash flows ultimately reflect assumptions made concerning net credit losses over the life of a loan. The use of reasonable and supportable forecasts requires significant judgment. Management leverages economic projections from reputable and independent third parties to inform and provide its reasonable and supportable economic forecasts. The Company’s model reverts to a straight line basis for purposes of estimating cash flows beyond a period deemed reasonable and supportable. The Company forecasts probability of default and loss given default based on economic forecast scenarios over an eight quarter time period before reverting to a straight line basis for a four quarter time period. The duration of the forecast horizon, the period over which forecasts revert to a straight line basis, the economic forecasts that management utilizes, as well as additional internal and external indicators of economic forecasts that management considers, may change over time depending on the nature and composition of our loan portfolio. Changes in economic forecasts, in conjunction with changes in loan specific attributes, impact a loan’s probability of default and loss given default, which can drive changes in the determination of the ACL. Expectations of future cash flows are discounted at the loan’s effective interest rate. The resulting ACL represents the amount by which a loan’s amortized cost exceeds the net present value of a loan’s discounted cash flows expected to be collected. The ACL is recorded through a charge to provision for credit losses and is reduced by charge-offs, net of recoveries on loans previously charged-off. It is the Company’s policy to charge-off loan balances at the time they have been deemed uncollectible. For segments where the discounted cash flow methodology is not used, a remaining life methodology is utilized. The remaining life method uses an average annual charge-off rate applied to the contractual term, further adjusted for estimated prepayments to determine the unadjusted historical charge-off rate for the remaining balance of assets. The estimated credit losses for all loan segments are adjusted for changes in qualitative factors not inherently considered in the quantitative analyses. The qualitative categories and the measurements used to quantify the risks within each of these categories are subjectively selected by management. The data for each measurement may be obtained from internal or external sources. The current period measurements are evaluated and assigned a factor commensurate with the current level of risk relative to past measurements over time. The resulting qualitative adjustments are applied to the relevant collectively evaluated loan portfolios. These adjustments are based upon the following: 1. Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses. 2. Changes in international, national, regional, and local economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments. 3. Changes in the nature and volume of the portfolio and in the terms of loans. 4. Changes in the experience, ability, and depth of lending management and other relevant staff. 5. Changes in the volume and severity of past-due loans, the volume of non-accrual loans, and the volume and severity of adversely classified or graded loans. 6. Changes in the quality of the Company's loan review system. 7. Changes in the value of underlying collateral for collateral-dependent loans. 8. The existence and effect of any concentrations of credit, and changes in the level of such concentrations. 9. The effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the Company’s existing portfolio. The qualitative allowance allocation, as determined by the processes noted above, is increased or decreased for each loan segment based on the assessment of these various qualitative factors. Loans that do not share similar risk characteristics with the collectively evaluated pools are evaluated on an individual basis and are excluded from the collectively evaluated pools. Individual evaluations are generally performed for loans greater than $500,000 which have experienced significant credit deterioration. Such loans are evaluated for credit losses based on the fair value of collateral. When management determines that foreclosure is probable, expected credit losses are based on the fair value of the collateral, less selling costs. For loans for which foreclosure is not probable, but for which repayment is expected to be provided substantially through the operation or sale of the collateral, the Company has elected the practical expedient under ASC 326 to estimate expected credit losses based on the fair value of collateral, with selling costs considered in the event sale of the collateral is expected. In assessing the adequacy of the allowance for credit losses, the Company considers the results of the Company's ongoing independent loan review process. The Company undertakes this process both to ascertain those loans in the portfolio with elevated credit risk and to assist in its overall evaluation of the risk characteristics of the entire loan portfolio. Its loan review process includes the judgment of management, independent internal loan reviewers and reviews that may have been conducted by third-party reviewers including regulatory examiners. The Company incorporates relevant loan review results in calculating the allowance for credit losses. In accordance with Current Expected Credit Losses ("CECL"), losses are estimated over the remaining contractual terms of loans, adjusted for prepayments and curtailment. The contractual term excludes expected extensions, renewals and modifications. Credit losses are estimated on the amortized cost basis of loans, which includes the principal balance outstanding and deferred loan fees and costs. While management utilizes its best judgment and information available, the ultimate appropriateness of the allowance is dependent upon a variety of factors beyond our control, including the performance of our loan portfolio, the economy, changes in interest rates and the view of the regulatory authorities toward loan classifications. Loans are charged off when management believes that the full collectability of the loan is unlikely. As such, a loan may be partially charged-off after a “confirming event” has occurred which serves to validate that full repayment pursuant to the terms of the loan is unlikely. Transactions in the allowance for credit losses for the six months ended June 30, 2024 and 2023 are summarized as follows:
(In Thousands)
Residential Commercial Construction, Commercial, 1-4 family Consumer Total
June 30, 2024
Allowance for credit losses - loans:
Beginning balance January 1, $ 8,765 17,422 14,027 1,533 1,809 1,292 44,848
Provision for credit losses 46 218 ( 459 ) ( 100 ) 68 227 —
Charge-offs — — — ( 14 ) — ( 461 ) ( 475 )
Recoveries 26 — 6 13 — 243 288
Ending balance $ 8,837 $ 17,640 $ 13,574 $ 1,432 $ 1,877 $ 1,301 44,661
(In Thousands)
Residential Commercial Construction, Commercial, 1-4 family Consumer Total
June 30, 2023
Allowance for credit losses - loans:
Beginning balance January 1, $ 7,310 15,299 13,305 1,437 1,170 1,292 39,813
Provision 911 1,245 877 130 252 625 4,040
Charge-offs — — — — — ( 732 ) ( 732 )
Recoveries 10 — 7 — — 225 242
Ending balance $ 8,231 16,544 14,189 1,567 1,422 1,410 43,363 Transactions in the allowance for credit losses for the three months ended June 30, 2024 and 2023 are summarized as follows:
(In Thousands)
Residential Commercial Construction, Commercial, 1-4 family Consumer Total
June 30, 2024
Allowance for credit losses - loans:
Beginning balance April 1, $ 8,661 17,997 13,356 1,479 1,823 1,426 44,742
Provision for credit losses 168 ( 357 ) 215 ( 47 ) 54 ( 33 ) —
Charge-offs — — — ( 8 ) — ( 173 ) ( 181 )
Recoveries 8 — 3 8 — 81 100
Ending balance $ 8,837 17,640 13,574 1,432 1,877 1,301 44,661
(In Thousands)
Residential Commercial Construction, Commercial, 1-4 family Consumer Total
June 30, 2023
Allowance for credit losses - loans:
Beginning balance April 1, $ 7,957 15,686 13,797 1,555 1,224 1,227 41,446
Provision 264 858 389 12 198 357 2,078
Charge-offs — — — — — ( 284 ) ( 284 )
Recoveries 10 — 3 — — 110 123
Ending balance $ 8,231 16,544 14,189 1,567 1,422 1,410 43,363 The following table presents the amortized cost basis of collateral dependent loans at June 30, 2024 and December 31, 2023 which are individually evaluated to determine expected credit losses:
In Thousands
Real Estate Other Total
June 30, 2024
Residential 1-4 family real estate $ 849 — 849
Commercial and multi-family real estate 46,750 — 46,750
Construction, land development and farmland 24,098 — 24,098
Commercial, industrial and agricultural — — —
1-4 family equity lines of credit — — —
Consumer and other — — —
$ 71,697 — 71,697
In Thousands
Real Estate Other Total
December 31, 2023
Residential 1-4 family real estate $ 1,949 — 1,949
Commercial and multi-family real estate 2,889 — 2,889
Construction, land development and farmland — — —
Commercial, industrial and agricultural — — —
1-4 family equity lines of credit — — —
Consumer and other — — —
$ 4,838 — 4,838 Loans are placed on nonaccrual status when there is a significant deterioration in the financial condition of the borrower, which often is determined when the principal or interest on the loan is more than 90 days past due, unless the loan is both well-secured and in the process of collection. Generally, all interest accrued but not collected for loans that are placed on nonaccrual status, is reversed against current income. Interest income is subsequently recognized only to the extent cash payments are received while the loan is classified as nonaccrual, but interest income recognition is reviewed on a case-by-case basis. A nonaccrual loan is returned to accruing status once the loan has been brought current and collection is reasonably assured or the loan has been “well-secured” through other techniques. Past due status is determined based on the contractual due date per the underlying loan agreement. The following tables present the Company’s nonaccrual loans and past due loans as of June 30, 2024 and December 31, 2023. Loans on Nonaccrual Status
In Thousands
June 30, December 31,
2024 2023
Residential 1-4 family real estate $ — $ —
Commercial and multi-family real estate — —
Construction, land development and farmland — —
Commercial, industrial and agricultural — —
1-4 family equity lines of credit — —
Consumer and other — —
Total $ — $ — Past Due Loans
(In thousands)
30-59 Days 60-89 Days Non Accrual Total Non Current Total Loans Recorded
June 30, 2024
Residential 1-4 family real estate $ 1,102 1,093 260 2,455 1,029,549 1,032,004 $ 260
Commercial and multi-family real estate 3,635 1,387 — 5,022 1,376,313 1,381,335 —
Construction, land development and 1,715 376 295 2,386 893,924 896,310 295
Commercial, industrial and agricultural 132 — 5 137 122,231 122,368 5
1-4 family equity lines of credit 1,342 248 77 1,667 227,592 229,259 77
Consumer and other 581 112 87 780 108,394 109,174 87
Total $ 8,507 3,216 724 12,447 3,758,003 3,770,450 $ 724
December 31, 2023
Residential 1-4 family real estate $ 1,544 552 1,178 3,274 955,944 959,218 $ 1,178
Commercial and multi-family real estate 5,846 — — 5,846 1,307,438 1,313,284 —
Construction, land development and 2,959 1 — 2,960 898,376 901,336 —
Commercial, industrial and agricultural 52 — 7 59 127,600 127,659 7
1-4 family equity lines of credit 571 209 106 886 201,845 202,731 106
Consumer and other 350 78 118 546 103,827 104,373 118
Total $ 11,322 840 1,409 13,571 3,595,030 3,608,601 $ 1,409 Loan Modifications to Borrowers Experiencing Financial Difficulty Effective January 1, 2023, we adopted ASU 2022-02 which eliminated the accounting guidance for troubled debt restructurings ("TDRs") and requires disclosures for certain loan modifications when a borrower is experiencing financial difficulty. Occasionally, the Company modifies loans to borrowers in financial distress by providing principal forgiveness, term extension, an other-than-insignificant payment delay or interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses. In some cases, the Company provides multiple types of concessions on one loan. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted. For the loans included in the "combination" columns below, multiple types of modifications have been made on the same loan within the current reporting period. The combination is at least two of the following: a term extension, principal forgiveness, an other-than-insignificant payment delay and/or an interest rate reduction. The following tables present the amortized cost basis of loans at June 30, 2024 and June 30, 2023 that were both experiencing financial difficulty and modified during the six months ended June 30, 2024 or six months ended June 30, 2023, by cl ass and type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below.
(In Thousands)
Principal Payment Term Interest Rate Combination Combination Term Extension and Interest Rate Reduction Total Class of Financing Receivable
Six Months Ended June 30, 2024
Residential 1-4 family real estate $ — $ — $ 950 $ — $ — $ — 0.09 %
Commercial and multi-family real estate — — — — — — — %
Construction, land development and — — — — — — — %
Commercial, industrial and agricultural — — — — — — — %
1-4 family equity lines of credit — — — — — — — %
Consumer and other — — — — — — — %
Total $ — $ — $ 950 $ — $ — $ — 0.03 % The Company has not committed to lend additional amounts to the borrowers included in the previous table.
(In Thousands)
Principal Payment Term Interest Rate Combination Combination Term Extension and Interest Rate Reduction Total Class of Financing Receivable
Six Months Ended June 30, 2023
Residential 1-4 family real estate $ — $ 947 $ — $ — $ — $ — 0.11 %
Commercial and multi-family real estate — 2,436 — — — — 0.21 %
Construction, land development and — — — — — — — %
Commercial, industrial and agricultural — — 97 — — — 0.08 %
1-4 family equity lines of credit — — — — — — — %
Consumer and other — — — — — — — %
Total $ — $ 3,383 $ 97 $ — $ — $ — 0.10 % As of June 30, 2023, the Company had not committed to lend additional amounts to the borrowers included in the previous table. The following tables present the amortized cost basis of loans at June 30, 2024 and June 30, 2023 that were both experiencing financial difficulty and modified during the three months ended June 30, 2024 or three months ended June 30, 2023, by class and type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below.
(In Thousands)
Principal Payment Term Interest Rate Combination Combination Term Extension and Interest Rate Reduction Total Class of Financing Receivable
Three Months Ended June 30, 2024
Residential 1-4 family real estate $ — $ — $ 950 $ — $ — $ — 0.09 %
Commercial and multi-family real estate — — — — — — — %
Construction, land development and — — — — — — — %
Commercial, industrial and agricultural — — — — — — — %
1-4 family equity lines of credit — — — — — — — %
Consumer and other — — — — — — — %
Total $ — $ — $ 950 $ — $ — $ — 0.03 %
(In Thousands)
Principal Payment Term Interest Rate Combination Combination Term Extension and Interest Rate Reduction Total Class of Financing Receivable
Three Months Ended June 30, 2023
Residential 1-4 family real estate $ — $ — $ — $ — $ — $ — — %
Commercial and multi-family real estate — — — — — — — %
Construction, land development and — — — — — — — %
Commercial, industrial and agricultural — — — — — — — %
1-4 family equity lines of credit — — — — — — — %
Consumer and other — — — — — — — %
Total $ — $ — $ — $ — $ — $ — — % The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of such loans that have been modified within the last twelve months as of June 30, 2024:
In Thousands
30-59 Days Past Due 60-89 Days Past Due Greater Than 89 Days Past Due Total Past Due
June 30, 2024
Residential 1-4 family real estate $ — $ — $ — $ —
Commercial and multi-family real estate — — — —
Construction, land development and — — — —
Commercial, industrial and agricultural — — — —
1-4 family equity lines of credit — — — —
Consumer and other — — — —
Total $ — $ — $ — $ — As evidenced above, no loans that were modified within the twelve months prior to June 30, 2024 were thirty (30) days or more past due at June 30, 2024. The following table presents the performance of such loans that have been modified for the six months ended June 30, 2023 :
In Thousands
30-59 Days Past Due 60-89 Days Past Due Greater Than 89 Days Past Due Total Past Due
June 30, 2023
Residential 1-4 family real estate $ — $ — $ — $ —
Commercial and multi-family real estate — — — —
Construction, land development and — — — —
Commercial, industrial and agricultural — — — —
1-4 family equity lines of credit — — — —
Consumer and other — — — —
Total $ — $ — $ — $ — As evidenced above, no loans that were modified within the six months prior to June 30, 2023 were thirty (30) days or more past due at June 30, 2023 . The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the six months ended June 30, 2024 and 2023 (dollars in thousands):
Six Months Ended June 30, 2024 Six Months Ended June 30, 2023
Principal Weighted-Average Weighted-Average Months of Term Extension Principal Weighted-Average Weighted-Average Months of Term Extension
Residential 1-4 family real estate $ — — % 6 $ — — % $ —
Commercial and multi-family real estate — — — — — —
Construction, land development and farmland — — — — — —
Commercial, industrial and agricultural — — — — — 37
1-4 family equity lines of credit — — — — — —
Consumer and other — — — — — —
Total $ — — % 6 $ — — % 37 The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the three months ended June 30, 2024 and 2023 (dollars in thousands):
Three Months Ended June 30, 2024 Three Months Ended June 30, 2023
Principal Weighted-Average Weighted-Average Months of Term Extension Principal Weighted-Average Weighted-Average Months of Term Extension
Residential 1-4 family real estate $ — — % 6 $ — — % —
Commercial and multi-family real estate — — — — — —
Construction, land development and farmland — — — — — —
Commercial, industrial and agricultural — — — — — —
1-4 family equity lines of credit — — — — — —
Consumer and other — — — — — —
Total $ — — % 6 $ — — % — There were no loan modifications with financial effect during the three months ended June 30, 2023. The following table presents the amortized cost basis of loans that had a payment default during the three and six months ended June 30, 2024 and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty (dollars in thousands):
Three Months Ended June 30, 2024 Six Months Ended June 30, 2024
Principal Forgiveness Payment Delay Term Extension Interest Rate Reduction Principal Forgiveness Payment Delay Term Extension Interest Rate Reduction
Residential 1-4 family real estate $ — $ — $ — $ — $ — $ — $ — $ —
Commercial and multi-family real estate — — — — — — — —
Construction, land development and — — — — — — — —
Commercial, industrial and agricultural — — — — — — — —
1-4 family equity lines of credit — — — — — — — —
Consumer and other — — — — — — — —
Total $ — $ — $ — $ — $ — $ — $ — $ — There were no payment defaults during the three or six months ended June 30, 2024 on loans that had been modified in the twelve months prior to June 30, 2024. The following table presents the amortized cost ba |
