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Loans
 3 Months Ended
Mar. 31, 2022
Loans and Leases Receivable, Net Amount [Abstract]  
Loans Loans
The Company’s loan portfolio includes originated and purchased loans. The following is an analysis of the loan portfolio by segment and class (net of unearned income):
March 31, 2022December 31, 2021
(dollars in thousands)
Commercial loans:
Commercial real estate$5,047,472 $4,981,263 
Commercial business3,492,307 3,423,268 
Agriculture765,319 795,715 
Construction409,242 384,755 
Consumer loans:
One-to-four family residential real estate1,003,157 1,013,908 
Other consumer42,187 43,028 
Total loans10,759,684 10,641,937 
Less: Allowance for credit losses(146,949)(155,578)
Total loans, net$10,612,735 $10,486,359 
At March 31, 2022 and December 31, 2021, the Company had no material foreign activities. Substantially all of the Company’s loans and unfunded commitments are geographically concentrated in its service areas within the states of Washington, Oregon, Idaho and California.
At March 31, 2022 and December 31, 2021, $3.51 billion and $3.49 billion of commercial and residential real estate loans were pledged as collateral on FHLB advances and additional borrowing capacity. The Company also pledged $200.3 million and $200.5 million of commercial loans to the FRB for additional borrowing capacity at March 31, 2022 and December 31, 2021, respectively.
Accrued interest receivable for loans is included in “Interest receivable” on the Company’s Consolidated Balance Sheet and is not reflected in the balances in the table above. At March 31, 2022 and December 31, 2021, accrued interest receivable for loans was $32.9 million and $32.4 million, respectively. The Company does not measure an allowance for credit losses for accrued interest receivable.
The following is an aging of the recorded investment of the loan portfolio at the dates presented:
Current
Loans		30 - 59
Days
Past Due		60 - 89
Days
Past Due		Greater
than 90
Days Past
Due		Total
Past Due		Nonaccrual
Loans		Total Loans
March 31, 2022(in thousands)
Commercial loans:
Commercial real estate$5,045,647 $886 $— $— $886 $939 $5,047,472 
Commercial business3,478,768 3,013 325 — 3,338 10,201 3,492,307 
Agriculture755,439 4,332 495 — 4,827 5,053 765,319 
Construction409,242 — — — — — 409,242 
Consumer loans:
One-to-four family residential real estate1,001,426 495 — — 495 1,236 1,003,157 
Other consumer42,151 24 — — 24 12 42,187 
Total$10,732,673 $8,750 $820 $— $9,570 $17,441 $10,759,684 
Current
Loans		30 - 59
Days
Past Due		60 - 89
Days
Past Due		Greater
than 90
Days Past
Due		Total
Past Due		Nonaccrual
Loans		Total Loans
December 31, 2021(in thousands)
Commercial loans:
Commercial real estate$4,977,781 $— $1,610 $— $1,610 $1,872 $4,981,263 
Commercial business3,406,539 2,721 687 — 3,408 13,321 3,423,268 
Agriculture789,112 1,207 — — 1,207 5,396 795,715 
Construction384,755 — — — — — 384,755 
Consumer loans:
One-to-four family residential real estate1,010,343 921 211 — 1,132 2,433 1,013,908 
Other consumer42,998 11 — — 11 19 43,028 
Total$10,611,528 $4,860 $2,508 $— $7,368 $23,041 $10,641,937 
Loan payments are considered timely when the contractual principal or interest due in accordance with the terms of the loan agreement or any portion thereof is received on the due date of the scheduled payment.
Nonaccrual loans are generally loans placed on a nonaccrual basis when they become 90 days past due or when there are otherwise serious doubts about the collectability of principal or interest within the existing terms of the loan. The Company’s policy is to write-off all accrued interest on loans when they are placed on nonaccrual status.
The following table summarizes written-off interest on nonaccrual loans for the periods indicated:
Three Months Ended March 31,
20222021
(in thousands)
Commercial loans$68 $211 
Consumer loans8 7 
Total$76 $218 
The following summarizes the amortized cost of nonaccrual loans for which there was no related ACL for the periods indicated:
March 31, 2022December 31, 2021
(in thousands)
Commercial loans:
Commercial real estate$— $932 
Commercial business4,418 5,131 
Agriculture3,662 3,756 
Consumer loans:
One-to-four family residential real estate774 — 
Total$8,854 $9,819 
The following is an analysis of loans classified as TDR for the periods indicated:
Three Months Ended March 31, 2022Three Months Ended March 31, 2021
Number of TDR ModificationsPre-Modification
Outstanding
Recorded
Investment 		Post-Modification
Outstanding
Recorded
Investment 		Number of TDR ModificationsPre-Modification
Outstanding
Recorded
Investment 		Post-Modification
Outstanding
Recorded
Investment
(dollars in thousands)
Commercial loans:
Commercial real estate— $— $— 1 $628 $628 
Commercial business— — — 7 $843 $843 
Agriculture1 633 633 — — — 
Consumer loans:
One-to-four family residential real estate— — — 2 140 140 
Total1 $633 $633 10 $1,611 $1,611 

The Company’s loans classified as TDR are loans that have been modified or with respect to which the borrower has been granted special concessions due to financial difficulties that, if not for the challenges of the borrower, the Company would not otherwise consider. The TDR modifications or concessions are made to increase the likelihood that these borrowers with financial difficulties will be able to satisfy their debt obligations as amended. The concessions granted in the restructurings, summarized in the table above, largely consisted of maturity extensions, interest rate modifications or a combination of both. In limited circumstances, a reduction in the principal balance of the loan could also be made as a concession. Loans classified as TDR are included with the loans collectively measured for credit losses.
The Company had commitments to lend $714 thousand of additional funds on loans classified as TDR as of March 31, 2022. The Company had $1.5 million of such commitments at December 31, 2021. The Company had no loans classified as TDR that defaulted within 12 months of being classified as TDR during the three months ended March 31, 2022 and December 31, 2021.
The Company offered PPP loans to provide financial support to small and medium-size businesses to cover payroll and certain other expenses during the COVID-19 pandemic. The PPP was established by the CARES Act and is implemented by the U.S. SBA with support from the U.S. Department of Treasury. The program, which was amended by the Paycheck Protection Flexibility Act of 2020, provides small businesses with funds to pay up to 24 weeks of payroll costs including benefits, as well as interest on mortgages, rent and utilities. Funds are provided to small businesses in the form of loans that will be fully forgiven when used for permitted purposes and when at least 60% of the funds are used for payroll costs and applicable employment levels are maintained in accordance with the requirements of the amended PPP. At March 31, 2022, we had $83.2 million of PPP loans outstanding, which are included in commercial business loans.