(1)

Construction and land development includes loans for both commercial construction and development, as well as loans for 1-4 family construction and lot loans.

(2)

Consumer owner occupied real estate includes loans on both 1-4 family owner occupied property, as well as 1-4 family investment rental property.

In accordance with the adoption of ASU 2016-13, the above table reflects the loan portfolio at the amortized cost basis for the current period March 31, 2021, to include net deferred cost of $27.7 million and unamortized discount total related to loans acquired of $87.3 million. Accrued interest receivable (AIR) of $89.5 million is accounted for separately and reported in other assets.

The Company purchased loans through its acquisition of CSFL in the second quarter of 2020, for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. The carrying amount of those loans, at acquisition, is as follows:


(Dollars in thousands)	June 7, 2020
Book value of acquired loans at acquisition	$	3,091,264
Allowance for credit losses at acquisition		(149,404)
Non-credit discount at acquisition		(14,283)
Carrying value or book value of acquired loans at acquisition	$	2,927,577

As part of the ongoing monitoring of the credit quality of our loan portfolio, Management tracks certain credit quality indicators, including trends related to (i) the level of classified loans, (ii) net charge-offs, (iii) non-performing loans (see details below), and (iv) the general economic conditions of the markets that we serve.

We utilize a risk grading matrix to assign a risk grade to each commercial loan. Classified loans are assessed at a minimum every six months. A description of the general characteristics of the risk grades is as follows:

●

Pass—These loans range from minimal credit risk to average, however, still acceptable credit risk.

●

Special mention—A special mention loan has potential weaknesses that deserve Management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or the institution’s credit position at some future date.

●

Substandard—A substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness, or weaknesses, that may jeopardize the liquidation of the debt. A substandard loan is characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.

●

Doubtful—A doubtful loan has all of the weaknesses inherent in one classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of the currently existing facts, conditions and values, highly questionable and improbable.

Construction and land development loans in the following table are on commercial and speculative real estate. Consumer owner occupied loans are on investment or rental 1-4 properties.

The following table presents the credit risk profile by risk grade of commercial loans by origination year:


	Term Loans
(Dollars in thousands)	Amortized Cost Basis by Origination Year
As of March 31, 2021	2021	2020	2019	2018	2017	Prior	Revolving	Total
Construction and land development
Risk rating:
Pass	$ 109,475	$ 446,813	$ 392,240	$ 108,104	$ 76,826	$ 92,885	$ 19,029	$ 1,245,372
Special mention	828	22,740	2,785	657	2,156	6,209	496	35,871
Substandard	378	305	2,821	442	857	3,703	-	8,506
Doubtful	-	-	-	-	-	8	-	8
Total Construction and land development	$ 110,681	$ 469,858	$ 397,846	$ 109,203	$ 79,839	$ 102,805	$ 19,525	$ 1,289,757

Commercial non-owner occupied
Risk rating:
Pass	$ 228,835	$ 781,247	$ 1,042,267	$ 795,307	$ 626,399	$ 1,757,376	$ 57,862	$ 5,289,293
Special mention	725	44,705	76,566	111,653	42,151	157,653	-	433,453
Substandard	364	477	74,662	9,855	28,205	90,098	-	203,661
Doubtful	-	-	-	-	-	46	-	46
Total Commercial non-owner occupied	$ 229,924	$ 826,429	$ 1,193,495	$ 916,815	$ 696,755	$ 2,005,173	$ 57,862	$ 5,926,453

Commercial Owner Occupied
Risk rating:
Pass	$ 163,545	$ 802,824	$ 966,904	$ 691,577	$ 565,159	$ 1,401,822	$ 32,417	$ 4,624,248
Special mention	286	6,182	9,813	13,654	14,287	58,571	20	102,813
Substandard	2,536	4,112	10,499	2,230	20,180	59,972	35	99,564
Doubtful	-	1	-	-	-	25	-	26
Total commercial owner occupied	$ 166,367	$ 813,119	$ 987,216	$ 707,461	$ 599,626	$ 1,520,390	$ 32,472	$ 4,826,651

Commercial and industrial
Risk rating:
Pass	$ 1,611,235	$ 1,313,365	$ 541,430	$ 405,497	$ 289,381	$ 589,987	$ 259,255	$ 5,010,150
Special mention	387	2,595	2,978	2,040	7,655	27,674	2,030	45,359
Substandard	533	2,967	1,196	6,418	5,546	6,879	8,347	31,886
Doubtful	-	-	2	2	3	13	1	21
Total commercial and industrial	$ 1,612,155	$ 1,318,927	$ 545,606	$ 413,957	$ 302,585	$ 624,553	$ 269,633	$ 5,087,416

Other income producing property
Risk rating:
Pass	$ 18,529	$ 92,394	$ 74,892	$ 76,332	$ 50,745	$ 167,989	$ 7,395	$ 488,276
Special mention	496	2,569	1,938	1,370	127	12,245	41	18,786
Substandard	475	926	568	534	124	12,758	47	15,432
Doubtful	-	-	-	-	-	6	-	6
Total other income producing property	$ 19,500	$ 95,889	$ 77,398	$ 78,236	$ 50,996	$ 192,998	$ 7,483	$ 522,500

Consumer owner occupied
Risk rating:
Pass	$ 398	$ 7,283	$ 3,414	$ 239	$ 102	$ 2,202	$ 14,875	$ 28,513
Special mention	221	126	3,544	220	60	52	101	4,324
Substandard	-	105	384	143	-	323	-	955
Doubtful	-	-	-	-	-	146	-	146
Total Consumer owner occupied	$ 619	$ 7,514	$ 7,342	$ 602	$ 162	$ 2,723	$ 14,976	$ 33,938

Other loans
Risk rating:
Pass	$ 5,186	$ -	$ -	$ -	$ -	$ -	$ -	$ 5,186
Special mention	-	-	-	-	-	-	-	-
Substandard	-	-	-	-	-	-	-	-
Doubtful	-	-	-	-	-	-	-	-
Total other loans	$ 5,186	$ -	$ -	$ -	$ -	$ -	$ -	$ 5,186

Total Commercial Loans
Risk rating:
Pass	$ 2,137,203	$ 3,443,926	$ 3,021,147	$ 2,077,056	$ 1,608,612	$ 4,012,261	$ 390,833	$ 16,691,038
Special mention	2,943	78,917	97,624	129,594	66,436	262,404	2,688	640,606
Substandard	4,286	8,892	90,130	19,622	54,912	173,733	8,429	360,004
Doubtful	-	1	2	2	3	244	1	253
Total Commercial Loans	$ 2,144,432	$ 3,531,736	$ 3,208,903	$ 2,226,274	$ 1,729,963	$ 4,448,642	$ 401,951	$ 17,691,901


	Term Loans
(Dollars in thousands)	Amortized Cost Basis by Origination Year
As of December 31, 2020	2020	2019	2018	2017	2016	Prior	Revolving	Total
Construction and land development
Risk rating:
Pass	$ 457,433	$ 410,075	$ 133,719	$ 79,345	$ 41,018	$ 53,104	$ 15,502	$ 1,190,196
Special mention	20,912	5,668	707	1,757	1,815	7,293	-	38,152
Substandard	389	2,800	763	2,087	201	3,669	-	9,909
Doubtful	-	-	-	-	-	8	-	8
Total Construction and land development	$ 478,734	$ 418,543	$ 135,189	$ 83,189	$ 43,034	$ 64,074	$ 15,502	$ 1,238,265

Commercial non-owner occupied
Risk rating:
Pass	$ 799,175	$ 1,082,242	$ 844,988	$ 661,092	$ 676,895	$ 1,196,156	$ 58,021	$ 5,318,569
Special mention	42,492	76,890	111,466	44,790	38,637	131,015	-	445,290
Substandard	1,351	49,662	7,497	27,224	38,617	43,109	-	167,460
Doubtful	-	-	-	-	-	4	-	4
Total Commercial non-owner occupied	$ 843,018	$ 1,208,794	$ 963,951	$ 733,106	$ 754,149	$ 1,370,284	$ 58,021	$ 5,931,323

Commercial Owner Occupied
Risk rating:
Pass	$ 805,192	$ 957,412	$ 721,808	$ 603,785	$ 458,065	$ 1,042,755	$ 42,239	$ 4,631,256
Special mention	6,993	15,984	13,021	14,457	13,597	48,775	21	112,848
Substandard	5,729	4,185	4,690	20,122	15,093	48,127	36	97,982
Doubtful	1	-	-	-	-	5	-	6
Total commercial owner occupied	$ 817,915	$ 977,581	$ 739,519	$ 638,364	$ 486,755	$ 1,139,662	$ 42,296	$ 4,842,092

Commercial and industrial
Risk rating:
Pass	$ 2,723,320	$ 595,310	$ 450,238	$ 308,914	$ 223,532	$ 419,555	$ 247,169	$ 4,968,038
Special mention	1,566	3,273	3,031	7,243	2,496	25,727	9,368	52,704
Substandard	347	1,070	6,202	7,718	2,808	6,010	2,240	26,395
Doubtful	-	2	1	3	3	1	-	10
Total commercial and industrial	$ 2,725,233	$ 599,655	$ 459,472	$ 323,878	$ 228,839	$ 451,293	$ 258,777	$ 5,047,147

Other income producing property
Risk rating:
Pass	$ 95,530	$ 89,648	$ 75,301	$ 55,103	$ 66,351	$ 121,304	$ 6,487	$ 509,724
Special mention	2,613	1,417	1,702	235	879	11,202	100	18,148
Substandard	1,071	1,046	997	19	1,279	13,702	47	18,161
Doubtful	-	-	-	-	-	6	-	6
Total other income producing property	$ 99,214	$ 92,111	$ 78,000	$ 55,357	$ 68,509	$ 146,214	$ 6,634	$ 546,039

Consumer owner occupied
Risk rating:
Pass	$ 7,590	$ 3,527	$ 356	$ 339	$ 1,076	$ 1,290	$ 15,502	$ 29,680
Special mention	130	3,581	249	62	-	124	338	4,484
Substandard	113	387	142	-	5	326	-	973
Doubtful	-	-	-	-	-	-	-	-
Total Consumer owner occupied	$ 7,833	$ 7,495	$ 747	$ 401	$ 1,081	$ 1,740	$ 15,840	$ 35,137

Other loans
Risk rating:
Pass	$ 17,993	$ -	$ -	$ -	$ -	$ -	$ -	$ 17,993
Special mention	-	-	-	-	-	-	-	-
Substandard	-	-	-	-	-	-	-	-
Doubtful	-	-	-	-	-	-	-	-
Total other loans	$ 17,993	$ -	$ -	$ -	$ -	$ -	$ -	$ 17,993

Total Commercial Loans
Risk rating:
Pass	$ 4,906,233	$ 3,138,214	$ 2,226,410	$ 1,708,578	$ 1,466,937	$ 2,834,164	$ 384,920	$ 16,665,456
Special mention	74,706	106,813	130,176	68,544	57,424	224,136	9,827	671,626
Substandard	9,000	59,150	20,291	57,170	58,003	114,943	2,323	320,880
Doubtful	1	2	1	3	3	24	-	34
Total Commercial Loans	$ 4,989,940	$ 3,304,179	$ 2,376,878	$ 1,834,295	$ 1,582,367	$ 3,173,267	$ 397,070	$ 17,657,996

For the consumer segment, delinquency of a loan is determined by past due status. Consumer loans are automatically placed on nonaccrual status once the loan is 90 days past due. Construction and land development loans are on 1-4 properties and lots. The following tables present the credit risk profile by past due status of consumer loans by origination year:


	Term Loans
(Dollars in thousands)	Amortized Cost Basis by Origination Year
As of March 31, 2021	2021	2020	2019	2018	2017	Prior	Revolving	Total
Consumer owner occupied
Days past due:
Current	$ 199,054	$ 837,846	$ 654,899	$ 490,479	$ 438,647	$ 1,336,430	$ -	$ 3,957,355
30 days past due	-	3,308	3,266	2,328	1,965	11,994	-	22,861
60 days past due	-	124	58	-	119	1,235	-	1,536
90 days past due	-	-	353	170	1,034	9,262	-	10,819
Total Consumer owner occupied	$ 199,054	$ 841,278	$ 658,576	$ 492,977	$ 441,765	$ 1,358,921	$ -	$ 3,992,571

Home equity loans
Days past due:
Current	$ 2,532	$ 7,269	$ 6,546	$ 5,360	$ 557	$ 27,574	$ 1,226,868	$ 1,276,706
30 days past due	-	52	156	2	-	554	3,953	4,717
60 days past due	-	65	-	65	-	212	1,163	1,505
90 days past due	-	3	221	79	66	2,476	1,315	4,160
Total Home equity loans	$ 2,532	$ 7,389	$ 6,923	$ 5,506	$ 623	$ 30,816	$ 1,233,299	$ 1,287,088

Consumer
Days past due:
Current	$ 84,682	$ 233,869	$ 180,014	$ 101,267	$ 54,976	$ 190,457	$ 29,548	$ 874,813
30 days past due	15	334	181	255	469	1,129	119	2,502
60 days past due	-	130	78	186	18	199	2	613
90 days past due	-	102	225	283	48	1,476	72	2,206
Total consumer	$ 84,697	$ 234,435	$ 180,498	$ 101,991	$ 55,511	$ 193,261	$ 29,741	$ 880,134

Construction and land development
Days past due:
Current	$ 66,685	$ 374,186	$ 83,748	$ 28,822	$ 11,488	$ 29,277	$ -	$ 594,206
30 days past due	-	3,368	1,488	-	-	-	-	4,856
60 days past due	-	-	-	-	-	-	-	-
90 days past due	-	-	-	-	-	82	-	82
Total Construction and land development	$ 66,685	$ 377,554	$ 85,236	$ 28,822	$ 11,488	$ 29,359	$ -	$ 599,144

Other income producing property
Days past due:
Current	$ 2,911	$ 1,913	$ 1,343	$ 1,205	$ 2,345	$ 30,896	$ -	$ 40,613
30 days past due	-	-	-		-	9	-	9
60 days past due	-	-	-	-	-	-	-	-
90 days past due	-	-	-	-	-	5	-	5
Total other income producing property	$ 2,911	$ 1,913	$ 1,343	$ 1,205	$ 2,345	$ 30,910	$ -	$ 40,627

Total Consumer Loans
Days past due:
Current	$ 355,864	$ 1,455,083	$ 926,550	$ 627,133	$ 508,013	$ 1,614,634	$ 1,256,416	$ 6,743,693
30 days past due	15	7,062	5,091	2,585	2,434	13,686	4,072	34,945
60 days past due	-	319	136	251	137	1,646	1,165	3,654
90 days past due	-	105	799	532	1,148	13,301	1,387	17,272
Total Consumer Loans	$ 355,879	$ 1,462,569	$ 932,576	$ 630,501	$ 511,732	$ 1,643,267	$ 1,263,040	$ 6,799,564


	Term Loans
(Dollars in thousands)	Amortized Cost Basis by Origination Year
As of March 31, 2021	2021	2020	2019	2018	2017	Prior	Revolving	Total
Total Loans	$ 2,500,311	$ 4,994,305	$ 4,141,479	$ 2,856,775	$ 2,241,695	$ 6,091,909	$ 1,664,991	$ 24,491,465


	Term Loans
(Dollars in thousands)	Amortized Cost Basis by Origination Year
As of December 31, 2020	2020	2019	2018	2017	2016	Prior	Revolving	Total
Consumer owner occupied
Days past due:
Current	$ 810,215	$ 675,928	$ 543,711	$ 508,160	$ 392,754	$ 1,097,008	$ -	$ 4,027,776
30 days past due	4,933	7,744	2,816	2,382	3,510	10,522	-	31,907
60 days past due	-	350	1,222	621	103	3,068	-	5,364
90 days past due	-	176	264	994	875	5,549	-	7,858
Total Consumer owner occupied	$ 815,148	$ 684,198	$ 548,013	$ 512,157	$ 397,242	$ 1,116,147	$ -	$ 4,072,905

Home equity loans
Days past due:
Current	$ 7,654	$ 6,694	$ 7,670	$ 658	$ 398	$ 30,039	$ 1,276,058	$ 1,329,171
30 days past due	134	52	-	79	-	272	2,324	2,861
60 days past due	-	-	-	-	-	116	418	534
90 days past due	155	93	-	157	330	1,886	1,502	4,123
Total Home equity loans	$ 7,943	$ 6,839	$ 7,670	$ 894	$ 728	$ 32,313	$ 1,280,302	$ 1,336,689

Consumer
Days past due:
Current	$ 291,305	$ 201,330	$ 115,203	$ 62,485	$ 38,272	$ 147,101	$ 32,874	$ 888,570
30 days past due	105	473	454	224	29	1,043	23	2,351
60 days past due	68	143	93	61	37	376	47	825
90 days past due	73	195	272	185	100	1,663	100	2,588
Total consumer	$ 291,551	$ 202,141	$ 116,022	$ 62,955	$ 38,438	$ 150,183	$ 33,044	$ 894,334

Construction and land development
Days past due:
Current	$ 370,975	$ 164,260	$ 63,936	$ 18,530	$ 4,497	$ 25,399	$ -	$ 647,597
30 days past due	6,172	3,660	161	-	2,255	184	-	12,432
60 days past due	282	-	438	-	-	-	-	720
90 days past due	-	-	-	-	-	52	-	52
Total Construction and land development	$ 377,429	$ 167,920	$ 64,535	$ 18,530	$ 6,752	$ 25,635	$ -	$ 660,801

Other income producing property
Days past due:
Current	$ 1,412	$ 1,351	$ 1,310	$ 3,658	$ 2,045	$ 31,592	$ -	$ 41,368
30 days past due	-	-	-	-	-	27	-	27
60 days past due	-	-	-	-	-	13	-	13
90 days past due	-	-	-	-	-	1	-	1
Total other income producing property	$ 1,412	$ 1,351	$ 1,310	$ 3,658	$ 2,045	$ 31,633	$ -	$ 41,409

Total Consumer Loans
Days past due:
Current	$ 1,481,561	$ 1,049,563	$ 731,830	$ 593,491	$ 437,966	$ 1,331,139	$ 1,308,932	$ 6,934,482
30 days past due	11,344	11,929	3,431	2,685	5,794	12,048	2,347	49,578
60 days past due	350	493	1,753	682	140	3,573	465	7,456
90 days past due	228	464	536	1,336	1,305	9,151	1,602	14,622
Total Consumer Loans	$ 1,493,483	$ 1,062,449	$ 737,550	$ 598,194	$ 445,205	$ 1,355,911	$ 1,313,346	$ 7,006,138


	Term Loans
(Dollars in thousands)	Amortized Cost Basis by Origination Year
As of December 31, 2020	2020	2019	2018	2017	2016	Prior	Revolving	Total
Total Loans	$ 6,483,423	$ 4,366,628	$ 3,114,428	$ 2,432,489	$ 2,027,572	$ 4,529,178	$ 1,710,416	$ 24,664,134

The following table presents an aging analysis of past due accruing loans, segregated by class:


	30 - 59 Days		60 - 89 Days		90+ Days		Total				Non-		Total
(Dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Accruing		Loans
March 31, 2021
Construction and land development	$	572	$	406	$	31	$	1,009	$	1,886,194	$	1,698	$	1,888,901
Commercial non-owner occupied		2,588		—		—		2,588		5,917,537		6,328		5,926,453
Commercial owner occupied		561		839		32		1,432		4,791,417		33,802		4,826,651
Consumer owner occupied		2,592		993		74		3,659		3,994,684		28,166		4,026,509
Home equity loans		3,520		620		—		4,140		1,272,461		10,487		1,287,088
Commercial and industrial		13,018		3,224		636		16,878		5,061,576		8,962		5,087,416
Other income producing property		373		5		184		562		557,516		5,049		563,127
Consumer		2,139		418		—		2,557		871,969		5,608		880,134
Other loans		3		—		—		3		5,183		—		5,186
	$	25,366	$	6,505	$	957	$	32,828	$	24,358,537	$	100,100	$	24,491,465
December 31, 2020
Construction and land development	$	520	$	1,142	$	—	$	1,662	$	1,894,983	$	2,421	$	1,899,066
Commercial non-owner occupied		188		372		471		1,031		5,925,696		4,596		5,931,323
Commercial owner occupied		2,900		840		—		3,740		4,812,293		26,059		4,842,092
Consumer owner occupied		1,375		3632		34		5,041		4,072,255		30,746		4,108,042
Home equity loans		1,805		481		—		2,286		1,324,459		9,944		1,336,689
Commercial and industrial		10,979		22,089		10,864		43,932		4,993,997		9,218		5,047,147
Other income producing property		687		—		278		965		580,353		6,130		587,448
Consumer		1,718		818		4		2,540		885,720		6,074		894,334
Other loans		13		6		—		19		17,974		—		17,993
	$	20,185	$	29,380	$	11,651	$	61,216	$	24,507,730	$	95,188	$	24,664,134

The following is a summary of information pertaining to nonaccrual loans by class, including restructured loans:


	December 31,		March 31,		Greater than		Non-accrual
(Dollars in thousands)	2020		2021		90 Days Accruing⁽¹⁾		with no allowance⁽¹⁾
Construction and land development	$	2,421	$	1,698	$	31	$	23
Commercial non-owner occupied		4,596		6,328		—		1,112
Commercial owner occupied real estate		26,059		33,802		32		12,870
Consumer owner occupied		30,746		28,166		74		314
Home equity loans		9,944		10,487		—		51
Commercial and industrial		9,218		8,962		636		222
Other income producing property		6,130		5,049		184		322
Consumer		6,074		5,608		—		—
Total loans on nonaccrual status	$	95,188	$	100,100	$	957	$	14,914

(1)

– Greater than 90 days accruing and non-accrual with no allowance loans at March 31, 2021.

There is no interest income recognized during the period on nonaccrual loans. The Company follows its nonaccrual policy by reversing contractual interest income in the income statement when the Company places a loan on nonaccrual status. Loans on nonaccrual status in which there is no allowance assigned are individually evaluated loans

that do not carry a specific reserve. See Note 2 – Summary of Significant Accounting Policies for further detailed on individually evaluated loans.

The following is a summary of collateral dependent loans, by type of collateral, and the extent to which they are collateralized during the period:


	December 31,		Collateral			March 31,		Collateral
(Dollars in thousands)	2020		Coverage		%	2021		Coverage		%
Commercial non-owner occupied
Retail	$	—	$	—		$	1,112	$	1,440	129%
Commercial owner occupied real estate
Office		1,076		1,485	138%		3,833		2,214	58%
Retail		4,849		5,490	113%		9,413		11,250	120%
Other		1,010		1,075	106%		—		—
Total collateral dependent loans	$	6,935	$	8,050		$	14,358	$	14,904

The Bank designates individually evaluated loans (excluding TDRs) on non-accrual with a net book balance exceeding the designated threshold as collateral dependent loans. Collateral dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. These loans do not share common risk characteristics and are not included within the collectively evaluated loans for determining ACL. Under ASC 326-20-35-6, the Bank has adopted the collateral maintenance practical expedient to measure the ACL based on the fair value of collateral. The ACL is calculated on an individual loan basis based on the shortfall between the fair value of the loan's collateral, which is adjusted for selling costs, and amortized cost. If the fair value of the collateral exceeds the amortized cost, no allowance is required. During the second quarter of 2020, the Bank increased the threshold limit for loans individually evaluated from $500,000 to $1.0 million. The significant changes above in collateral percentage are due to appraisal value updates or changes in the number of loans within the asset class and collateral type. Overall collateral dependent loans increased $7.4 million during the three months ended March 31, 2021.

In the course of resolving delinquent loans, the Bank may choose to restructure the contractual terms of certain loans. Any loans that are modified are reviewed by the Bank to determine if a TDR, sometimes referred to herein as a restructured loan, has occurred. The Bank designates loan modifications as TDRs when it grants a concession to a borrower that it would not otherwise consider due to the borrower experiencing financial difficulty (FASB ASC Topic 310-40). The concessions granted on TDRs generally include terms to reduce the interest rate, extend the term of the debt obligation, or modify the payment structure on the debt obligation. See Note 2 – Summary of Significant Accounting Policies for how such modifications are factored into the determination of the ACL.

Loans on nonaccrual status at the date of modification are initially classified as nonaccrual TDRs. Loans on accruing status at the date of concession are initially classified as accruing TDRs if the note is reasonably assured of repayment and performance is expected in accordance with its modified terms. Such loans may be designated as nonaccrual loans subsequent to the concession date if reasonable doubt exists as to the collection of interest or principal under the restructuring agreement. Nonaccrual TDRs are returned to accruing status when there is economic substance to the restructuring, there is documented credit evaluation of the borrower’s financial condition, the remaining balance is reasonably assured of repayment in accordance with its modified terms, and the borrower has demonstrated sustained repayment performance in accordance with the modified terms for a reasonable period of time (generally a minimum of six months).

The Company elected the accounting policy in the CARES Act to not apply TDR accounting to loans modified for borrowers impacted by the COVID-19 pandemic if the concession meets the criteria stipulated in the CARES Act. Details in regards to the Company’s implemented loan modification programs in response to the COVID-19 pandemic under the CARES Act is disclosed under the Note 2 – Summary of Significant Accounting Policies.

The following table presents loans designated as TDRs segregated by class and type of concession that were restructured during the three month period ending March 31, 2021 and 2020.


	Three Months Ended March 31,
	2021					2020
		Pre-Modification		Post-Modification			Pre-Modification		Post-Modification
	Number	Amortized		Amortized		Number	Amortized		Amortized
(Dollars in thousands)	of loans	Cost		Cost		of loans	Cost		Cost
Interest rate modification
Construction and land development	—	$	—	$	—	2	$	106	$	106
Consumer owner occupied	—		—		—	1		30		30
Commercial and industrial	—		—		—	6		782		782
Other income producing property	1		298		298	1		345		345
Total interest rate modifications	1	$	298	$	298	10	$	1,263	$	1,263
Term modification
Consumer owner occupied	—	$	—	$	—	1	$	52	$	52
Home equity loans	—		—		—	1		52		52
Commercial and industrial	1		40		40	1		284		284
Total term modifications	1	$	40	$	40	3	$	388	$	388
	2	$	338	$	338	13	$	1,651	$	1,651

At March 31, 2021 and 2020, the balance of accruing TDRs was $14.5 million and $10.9 million, respectively. The Company had $791,000 and $1.1 million remaining availability under commitments to lend additional funds on restructured loans at March 31, 2021 and 2020. The amount of specific reserve associated with restructured loans was $2.4 million and $1.1 million at March 31, 2021 and 2020, respectively.

The following table presents the changes in status of loans restructured within the previous 12 months as of March 31, 2021 by type of concession. There were no loans with subsequent default.


	Paying Under
	Restructured Terms		Converted to Nonaccrual		Foreclosures and Defaults
	Number	Amortized	Number	Amortized	Number	Amortized
(Dollars in thousands)	of Loans	Cost	of Loans	Cost	of Loans	Cost
Interest rate modification	10	$ 7,620	—	$—	—	$—
Term modification	8	1,209	—	—	—	—
	18	$ 8,829	—	$—	—	$—