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LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES
 12 Months Ended
Dec. 31, 2023
Credit Loss [Abstract]  
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES
The following is a summary of total loans by regulatory call report code with sub-segmentation based on underlying collateral for certain loan types:
(In thousands)December 31, 2023December 31, 2022
Construction$640,371 $319,452 
Commercial multifamily599,145 620,088 
Commercial real estate owner occupied628,646 640,489 
Commercial real estate non-owner occupied2,606,409 2,496,237 
Commercial and industrial1,359,249 1,445,236 
Residential real estate2,760,312 2,312,447 
Home equity224,223 227,450 
Consumer other221,331 273,910 
Total loans$9,039,686 $8,335,309 
Allowance for credit losses105,357 96,270 
Net loans$8,934,329 $8,239,039 

As of December 31, 2023 and 2022, outstanding loans originated under the Small Business Administration ("SBA") Paycheck Protection Program ("PPP") totaled $3.0 million and $5.8 million, respectively. These loans are 100% guaranteed by the SBA and the full principal amount of the loan may qualify for forgiveness. These loans are included in commercial and industrial.

In 2023, the Company purchased loans aggregating $649 million and sold loans aggregating $255 million. In 2022, the Company purchased loans aggregating $718 million and sold loans aggregating $366 million. In 2021, the Company purchased loans aggregating $211 million and sold loans aggregating $560 million. Net gains on sales of loans were $10.3 million, $12.5 million, and $20.7 million for the years 2023, 2022, and 2021, respectively.
Most of the Company’s lending activity occurs within its primary markets in Massachusetts, Southern Vermont, and Northeastern New York. Most of the loan portfolio is secured by real estate, including residential mortgages, commercial mortgages, and home equity loans. Year-end loans to operators of non-residential buildings totaled $2.2 billion, or 24.0%, and $1.9 billion, or 22.7% of total loans in 2023 and 2022, respectively. There were no other concentrations of loans related to any single industry in excess of 10% of total loans at year-end 2023 or 2022.

As of December 31, 2023 and December 31, 2022, the Company had no foreclosed residential real estate property. Additionally, residential mortgage loans collateralized by real estate property that are in the process of foreclosure as of December 31, 2023 and December 31, 2022 totaled $3.8 million and $3.0 million, respectively, including sold loans serviced by the Company.

At year-end 2023 and 2022, the Company had pledged loans totaling $1.3 billion and $0.8 billion, respectively, to the Federal Reserve Bank of Boston as collateral for certain borrowing arrangements. Also, residential first mortgage loans are subject to a blanket lien for FHLBB advances. See Note 10 - Borrowed Funds.

At year-end 2023 and 2022, the Company’s commitments outstanding to related parties totaled $1.5 million and $1.5 million, respectively, and the loans outstanding against these commitments totaled $0.8 million and $0.8 million, respectively. Related parties include directors and executive officers of the Company and its subsidiaries, as well as their respective affiliates in which they have a controlling interest and immediate family members. For the years 2023 and 2022, all related party loans were performing.

Risk characteristics relevant to each portfolio segment are as follows:
Construction -Loans in this segment primarily include real estate development loans for which payment is derived from sale of the property or long term financing at completion. Credit risk is affected by cost overruns, time to sell at an adequate price, and market conditions.

Commercial real estate multifamily, owner occupied and non-owner - Loans in these segments are primarily owner-occupied or income-producing properties throughout New England and Northeastern New York. The underlying cash flows generated by the properties are adversely impacted by a downturn in the economy, which in turn, will have an effect on the credit quality in this segment. Management monitors the cash flows of these loans.

Commercial and industrial loans - Loans in this segment are made to businesses and are generally secured by assets of the business such as accounts receivable, inventory, marketable securities, other liquid collateral, equipment and other business assets. Repayment is expected from the cash flows of the business. Loans in this segment include asset based loans which generally have no scheduled repayment and which are closely monitored against formula based collateral advance ratios. A weakened economy, and resultant decreased consumer spending, will have an effect on the credit quality in this segment.

Residential real estate - All loans in this segment are collateralized by residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment.

Home equity and other consumer loans - Loans in this segment are primarily home equity lines of credit, automobile loans and other consumer loans. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment.
Allowance for Credit Losses on Loans
The Allowance for Credit Losses on Loans (“ACLL”) is comprised of the allowance for credit losses on loans, and the allowance for unfunded commitments is accounted for as a separate liability in other liabilities on the Consolidated Balance Sheets. The level of the ACLL represents management’s estimate of expected credit losses over the expected life of the loans at the balance sheet date. The Company uses a static pool migration analysis method, applying expected historical loss trend and observed economic metrics. The level of the ACLL is based on management’s ongoing review of all relevant information, from internal and external sources, relating to past and current events, utilizing a 7 quarter reasonable and supportable forecast period with a 1 year reversion period. The ACLL reserve is overlaid with qualitative factors based upon:
•the existence and growth of concentrations of credit;
•the volume and severity of past due financial assets, including nonaccrual assets;
•the institutions lending and credit review as well as the experience and ability of relevant management and staff and;
•the effect of other external factors such as regulatory, competition, regional market conditions, legal and technological environment and other events such as natural disasters;
•the effect of other economic factors such as economic stimulus and customer forbearance programs (when applicable).
The allowance for unfunded commitments is maintained at a level by the Company to be sufficient to absorb expected lifetime losses related to unfunded credit facilities (including unfunded loan commitments and letters of credit) and is included in other liabilities on the consolidated balance sheets.
The Company’s activity in the allowance for credit losses on loans for the years ended December 31, 2023, December 31, 2022 and December 31, 2021 was as follows:
(In thousands)Balance at Beginning of PeriodAdoption of
ASU No.
2022-02		Charge-offsRecoveriesProvision for Credit LossesBalance at End of Period
Year ended December 31, 2023
Construction$1,227 $— $(1)$— $1,659 $2,885 
Commercial multifamily1,810 — — 6 659 2,475 
Commercial real estate owner occupied10,739 24 (489)1,139 (1,970)9,443 
Commercial real estate non-owner occupied30,724 — (65)204 7,358 38,221 
Commercial and industrial18,743 (23)(17,872)2,659 15,095 18,602 
Residential real estate18,666 2 (313)610 657 19,622 
Home equity2,173 — (88)519 (589)2,015 
Consumer other12,188 (404)(10,429)1,586 9,153 12,094 
Total allowance for credit losses$96,270 $(401)$(29,257)$6,723 $32,022 $105,357 

(In thousands)Balance at Beginning of PeriodCharge-offsRecoveriesProvision for Credit LossesBalance at End of Period
Year ended December 31, 2022
Construction$3,206 $— $— $(1,979)$1,227 
Commercial multifamily6,120 (94)112 (4,328)1,810 
Commercial real estate owner occupied12,752 (687)702 (2,028)10,739 
Commercial real estate non-owner occupied32,106 (5,894)1,549 2,963 30,724 
Commercial and industrial22,584 (18,447)3,050 11,556 18,743 
Residential real estate22,406 (555)1,019 (4,204)18,666 
Home equity4,006 (166)283 (1,950)2,173 
Consumer other2,914 (2,215)505 10,984 12,188 
Total allowance for credit losses$106,094 $(28,058)$7,220 $11,014 $96,270 

(In thousands)Balance at Beginning of PeriodCharge-offsRecoveriesProvision for Credit LossesBalance at End of Period
Year ended December 31, 2021
Construction$5,111 $— $— $(1,905)$3,206 
Commercial multifamily5,916 (404)157 451 $6,120 
Commercial real estate owner occupied12,380 (1,640)204 1,808 $12,752 
Commercial real estate non-owner occupied35,850 (14,557)2,522 8,291 $32,106 
Commercial and industrial25,013 (10,841)4,565 3,847 $22,584 
Residential real estate28,491 (1,664)1,767 (6,188)$22,406 
Home equity6,482 (334)335 (2,477)$4,006 
Consumer other8,059 (1,578)761 (4,328)2,914 
Total allowance for credit losses$127,302 $(31,018)$10,311 $(501)$106,094 

The Company’s allowance for credit losses on unfunded commitments is recognized as a liability (other liability on the Consolidated Balance Sheets), with adjustments to the reserve recognized in other noninterest expense in the Consolidated Statements of Income. The Company’s activity in the allowance for credit losses on unfunded commitments for the years ended December 31, 2023, December 31, 2022, and December 31, 2021 was as follows:
(In thousands)Total
Balance at December 31, 2022$8,588 
Expense for credit losses668 
Balance at December 31, 2023$9,256 

(In thousands)Total
Balance at December 31, 2021$7,043 
Release of expense for credit losses1,545 
Balance at December 31, 2022$8,588 

(In thousands)Total
Balance at December 31, 2020$7,629 
Release of expense for credit losses(586)
Balance at December 31, 2021$7,043 

Credit Quality Information
The Company monitors the credit quality of its portfolio by using internal risk ratings that are based on regulatory guidance. Loans that are given a Pass rating are not considered a problem credit. Loans that are classified as Special Mention loans are considered to have potential weaknesses and are evaluated closely by management. Substandard, including nonaccruing loans, are loans for which a definitive weakness has been identified and which may make full collection of contractual cash flows questionable. Doubtful loans are those with identified weaknesses that make full collection of contractual cash flows, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

For commercial credits, the Company assigns an internal risk rating at origination and reviews the rating annually, semiannually, or quarterly depending on the risk rating. The rating is also reassessed at any point in time when management becomes aware of information that may affect the borrower’s ability to fulfill their obligations.

The Company risk rates its residential mortgages, including 1-4 family and residential construction loans, based on a three rating system: Pass, Special Mention, and Substandard. Loans that are current within 59 days are rated Pass. Residential mortgages that are 60-89 days delinquent are rated Special Mention. Loans delinquent for 90 days or greater are rated Substandard and generally placed on nonaccrual status. 
The following table presents the Company’s loans by risk category:
Term Loans Amortized Cost Basis by Origination Year
(In thousands)20232022202120202019PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
As of December 31, 2023
Construction
Current period gross write-offs$— $— $— $— $— $1 $— $— $1 
Risk rating
Pass$104,507 $346,419 $138,802 $29,176 $2,545 $1,098 $— $— $622,547 
Special Mention— — 512 — — — — — 512 
Substandard— — 17,312 — — — — — 17,312 
Total$104,507 $346,419 $156,626 $29,176 $2,545 $1,098 $— $— $640,371 
Commercial multifamily:
Current period gross write-offs$— $— $— $— $— $— $— $— $— 
Risk rating
Pass$16,020 $216,477 $56,817 $26,566 $94,733 $179,923 $377 $— $590,913 
Special Mention— — — — — — — — — 
Substandard— — 242 2,554 — 5,436 — — 8,232 
Total$16,020 $216,477 $57,059 $29,120 $94,733 $185,359 $377 $— $599,145 
Commercial real estate owner occupied:
Current period gross write-offs$— $— $— $380 $— $109 $— $— $489 
Risk rating
Pass$97,271 $120,327 $122,151 $37,914 $70,393 $165,224 $2,653 $— $615,933 
Special Mention— — 424 222 — 788 — — 1,434 
Substandard— — 81 47 4,703 6,448 — — 11,279 
Total$97,271 $120,327 $122,656 $38,183 $75,096 $172,460 $2,653 $— $628,646 
Commercial real estate non-owner occupied:
Current period gross write-offs$— $— $— $— $— $65 $— $— $65 
Risk rating
Pass$404,687 $591,897 $385,247 $135,134 $277,870 $736,566 $4,553 $— $2,535,954 
Special Mention— — — 229 19,465 726 — — 20,420 
Substandard— — — 6,814 13,483 29,738 — — 50,035 
Total$404,687 $591,897 $385,247 $142,177 $310,818 $767,030 $4,553 $— $2,606,409 
Commercial and industrial:
Current period gross write-offs$— $1,154 $863 $2,763 $1,496 $9,283 $2,313 $— $17,872 
Risk rating
Pass$142,946 $203,126 $118,191 $69,722 $39,437 $112,770 $554,153 $— $1,240,345 
Special Mention526 23,149 3,735 1,621 610 1,353 35,244 — 66,238 
Substandard432 761 11,702 1,135 3,785 12,538 22,313 — 52,666 
Total$143,904 $227,036 $133,628 $72,478 $43,832 $126,661 $611,710 $— $1,359,249 
Term Loans Amortized Cost Basis by Origination Year
(In thousands)20232022202120202019PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
Residential real estate
Current period gross write-offs$— $50 $— $50 $174 $39 $— $— $313 
Risk rating
Pass$599,124 $973,031 $266,055 $88,302 $66,837 $755,372 $81 $— $2,748,802 
Special Mention— — — — 140 664 — — 804 
Substandard— 129 1,176 379 574 8,448 — — 10,706 
Total$599,124 $973,160 $267,231 $88,681 $67,551 $764,484 $81 $— $2,760,312 
Term Loans Amortized Cost Basis by Origination Year
(In thousands)20222021202020192018PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
As of December 31, 2022
Construction
Risk rating
Pass$153,393 $133,708 $25,634 $3,432 $1,361 $1,924 $— $— $319,452 
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Total$153,393 $133,708 $25,634 $3,432 $1,361 $1,924 $— $— $319,452 
Commercial multifamily:
Risk rating
Pass$205,124 $61,032 $27,583 $100,696 $67,675 $149,633 $205 $— $611,948 
Special Mention— — 2,628 — — — — — 2,628 
Substandard— — — — 5,512 — — — 5,512 
Total$205,124 $61,032 $30,211 $100,696 $73,187 $149,633 $205 $— $620,088 
Commercial real estate owner occupied:
Risk rating
Pass$131,096 $127,270 $58,835 $82,576 $75,322 $154,056 $3,464 $— $632,619 
Special Mention— — 387 — — — — — 387 
Substandard1,003 122 31 282 1,056 4,989 — — 7,483 
Total$132,099 $127,392 $59,253 $82,858 $76,378 $159,045 $3,464 $— $640,489 
Commercial real estate non-owner occupied:
Risk rating
Pass$621,685 $410,359 $175,456 $333,783 $313,124 $530,322 $17,846 $— $2,402,575 
Special Mention— — — — 20,000 18,462 — — 38,462 
Substandard— — 7,237 13,623 15,610 18,730 — — 55,200 
Total$621,685 $410,359 $182,693 $347,406 $348,734 $567,514 $17,846 $— $2,496,237 
Commercial and industrial:
Risk rating
Pass$282,781 $147,070 $56,880 $67,975 $83,223 $99,367 $648,956 $— $1,386,252 
Special Mention— 5,811 1,290 1,332 11,502 912 2,632 — 23,479 
Substandard204 496 3,640 8,139 1,981 2,799 10,581 — 27,840 
Doubtful— — — — — 56 7,609 — 7,665 
Total$282,985 $153,377 $61,810 $77,446 $96,706 $103,134 $669,778 $— $1,445,236 
Residential real estate
Risk rating
Pass$997,981 $280,308 $96,548 $70,845 $138,894 $713,744 $165 $— $2,298,485 
Special Mention— 364 — 861 202 707 — — 2,134 
Substandard— 284 448 267 1,857 8,972 — — 11,828 
Total$997,981 $280,956 $96,996 $71,973 $140,953 $723,423 $165 $— $2,312,447 
For home equity and consumer other loan portfolio segments, Berkshire evaluates credit quality based on the aging status of the loan and by payment activity. The performing or nonperforming status is updated on an ongoing basis dependent upon improvement and deterioration in credit quality. The following table presents the amortized cost based on payment activity:
Term Loans Amortized Cost Basis by Origination Year
(In thousands)20232022202120202019PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
As of December 31, 2023
Home equity:
Current period gross write-offs$— $— $— $70 $— $— $18 $— $88 
Payment performance
Performing$— $— $— $439 $— $2,614 $220,209 $— $223,262 
Nonperforming— — — — — — 961 — 961 
Total$— $— $— $439 $— $2,614 $221,170 $— $224,223 
Consumer other:
Current period gross write-offs$109 $8,843 $1,149 $11 $78 $239 $— $— $10,429 
Payment performance
Performing$49,588 $108,284 $19,679 $5,843 $7,054 $19,587 $10,614 $— $220,649 
Nonperforming77 104 47 26 110 284 34 — 682 
Total$49,665 $108,388 $19,726 $5,869 $7,164 $19,871 $10,648 $— $221,331 

Term Loans Amortized Cost Basis by Origination Year
(In thousands)20222021202020192018PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
As of December 31, 2022
Home equity:
Payment performance
Performing$— $114 $454 $— $— $17 $224,746 $— $225,331 
Nonperforming— — — — — — 2,119 — 2,119 
Total$— $114 $454 $— $— $17 $226,865 $— $227,450 
Consumer other:
Payment performance
Performing$161,157 $28,279 $8,312 $12,670 $27,608 $24,682 $9,070 $— $271,778 
Nonperforming588 137 44 280 477 567 39 — 2,132 
Total$161,745 $28,416 $8,356 $12,950 $28,085 $25,249 $9,109 $— $273,910 
The following table summarizes information about total loans rated Special Mention or lower at December 31, 2023 and December 31, 2022. The table below includes consumer loans that are Special Mention and Substandard accruing that are classified as performing based on payment activity.
(In thousands)December 31, 2023December 31, 2022
Nonaccrual
$21,407 $31,114 
Substandard Accruing131,689 88,665 
Total Classified153,096 119,779 
Special Mention91,502 68,127 
Total Criticized
$244,598 $187,906 

The following is a summary of loans by past due status at December 31, 2023 and December 31, 2022:
(In thousands)30-59 Days Past Due60-89 Days Past Due90 Days or Greater Past DueTotal Past DueCurrentTotal Loans
December 31, 2023
Construction$— $— $— $— $640,371 $640,371 
Commercial multifamily5,436 187 — 5,623 593,522 599,145 
Commercial real estate owner occupied581 286 804 1,671 626,975 628,646 
Commercial real estate non-owner occupied139 251 3,798 4,188 2,602,221 2,606,409 
Commercial and industrial2,749 689 8,769 12,207 1,347,042 1,359,249 
Residential real estate5,669 943 10,687 17,299 2,743,013 2,760,312 
Home equity707 498 1,281 2,486 221,737 224,223 
Consumer other2,363 1,642 1,606 5,611 215,720 221,331 
Total$17,644 $4,496 $26,945 $49,085 $8,990,601 $9,039,686 
(In thousands)30-59 Days Past Due60-89 Days Past Due90 Days or Greater Past DueTotal Past DueCurrentTotal Loans
December 31, 2022
Construction$— $— $— $— $319,452 $319,452 
Commercial multifamily— 214 — 214 619,874 620,088 
Commercial real estate owner occupied122 — 3,302 3,424 637,065 640,489 
Commercial real estate non-owner occupied143 — 191 334 2,495,903 2,496,237 
Commercial and industrial1,173 1,438 18,658 21,269 1,423,967 1,445,236 
Residential real estate3,694 2,134 11,724 17,552 2,294,895 2,312,447 
Home equity168 57 2,119 2,344 225,106 227,450 
Consumer other1,990 1,028 2,158 5,176 268,734 273,910 
Total$7,290 $4,871 $38,152 $50,313 $8,284,996 $8,335,309 
The following is a summary of loans on nonaccrual status and loans past due 90 days or more and still accruing as of December 31, 2023 and December 31, 2022:
December 31, 2023
(In thousands)Nonaccrual Amortized CostNonaccrual With No Related AllowancePast Due 90 Days or Greater and AccruingInterest Income Recognized on Nonaccrual
Construction$— $— $— $— 
Commercial multifamily— — — — 
Commercial real estate owner occupied605 285 199 — 
Commercial real estate non-owner occupied3,798 45 — — 
Commercial and industrial8,665 5,586 104 — 
Residential real estate6,696 2,796 3,991 — 
Home equity961 122 320 — 
Consumer other682 — 924 — 
Total$21,407 $8,834 $5,538 $— 
The commercial and industrial loans nonaccrual amortized cost as of December 31, 2023 included medallion loans with a fair value of $0.4 million and a contractual balance of $8.8 million.


December 31, 2022
(In thousands)Nonaccrual Amortized CostNonaccrual With No Related AllowancePast Due 90 Days or Greater and AccruingInterest Income Recognized on Nonaccrual
Construction$— $— $— $— 
Commercial multifamily— — — — 
Commercial real estate owner occupied2,202 1,411 1,100 — 
Commercial real estate non-owner occupied191 73 — — 
Commercial and industrial16,992 14,223 1,666 — 
Residential real estate8,901 5,307 2,823 — 
Home equity1,568 388 551 — 
Consumer other1,260 2 898 — 
Total$31,114 $21,404 $7,038 $— 
The commercial and industrial loans nonaccrual amortized cost as of December 31, 2022 included medallion loans with a fair value of $0.6 million and a contractual balance of $10.9 million.
A financial asset is considered collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. Expected credit losses for collateral-dependent loans are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. Significant quarter over quarter changes are reflective of changes in nonaccrual status and not necessarily associated with credit quality indicators like appraisal value. The following table presents the amortized cost basis of individually analyzed collateral-dependent loans by loan portfolio segment:
Type of Collateral
(In thousands)Real EstateInvestment Securities/CashOther
December 31, 2023
Construction$— $— $— 
Commercial multifamily— — — 
Commercial real estate owner occupied650 — — 
Commercial real estate non-owner occupied342 — — 
Commercial and industrial4,788 — 944 
Residential real estate5,035 — — 
Home equity135 — — 
Consumer other40 — — 
Total loans$10,990 $— $944 

Type of Collateral
(In thousands)Real EstateInvestment Securities/CashOther
December 31, 2022
Construction$— $— $— 
Commercial multifamily— — — 
Commercial real estate owner occupied2,793 — — 
Commercial real estate non-owner occupied384 — — 
Commercial and industrial288 — 16,931 
Residential real estate3,910 — — 
Home equity501 — — 
Consumer other2 — — 
Total loans$7,878 $— $16,931 
Modified Loans
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 and principal forgiveness, an other-than-insignificant payment delay and/or an interest rate reduction.

The following table presents the amortized cost basis of loans at December 31, 2023 that were both experiencing financial difficulty and modified during the year ended December 31, 2023, by class and by 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 ForgivenessPayment DelayTerm ExtensionInterest Rate ReductionCombination Term Extension and Principal ForgivenessCombination Term Extension and Interest Rate ReductionTotal Class of Financing Receivable
Year ended December 31, 2023
Construction$— $— $— $— $— $— — %
Commercial multifamily— — — — — — — 
Commercial real estate owner occupied— — 222 — — — 0.04 
Commercial real estate non-owner occupied— — 11,454 — — 3,600 0.58 
Commercial and industrial— 34 16,005 — — 9 1.18 %
Residential real estate— — — — — — — 
Home equity— — — — — — — 
Consumer other— — — — — — — 
Total$— $34 $27,681 $— $— $3,609 0.35 %

The Company has committed to lend additional amounts totaling $7.8 million to the borrowers included in the previous table.
The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of such loans that have been modified in the last 12 months.
(In thousands)30 - 59 Days Past Due60 - 89 Days Past DueGreater Than 89 Days Past DueTotal Past Due
December 31, 2023
Construction$— $— $— $— 
Commercial multifamily— — — — 
Commercial real estate owner occupied— — — — 
Commercial real estate non-owner occupied— — — — 
Commercial and industrial34 — — 34 
Residential real estate— — — — 
Home equity— — — — 
Consumer other— — — — 
Total$34 $— $— $34 


The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the year ended December 31, 2023:
(In thousands)Principal ForgivenessWeighted Average Interest Rate ReductionWeighted Average Term Extension (months)
Years ended December 31, 2023
Construction$— — %0
Commercial multifamily— — 0
Commercial real estate owner occupied— — 120
Commercial real estate non-owner occupied— 0.05 16
Commercial and industrial— 1.25 23
Residential real estate— — 0
Home equity— — 0
Consumer other— — 0

There were no loans that had a payment default during the years ended December 31, 2023 that were modified in the twelve months prior to that default to borrowers experiencing financial difficulty.
Upon the Company's determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount.