7.	LOANS AND LEASE FINANCE RECEIVABLES AND

ALLOWANCE FOR LOAN LOSSES

The following table provides a summary of total loans and lease finance receivables, excluding PCI loans, by type.


	March 31, 2016			December 31, 2015
	(Dollars in thousands)

Commercial and industrial		$	466,961		$	434,099
SBA			113,703			106,867
Real estate:
Commercial real estate			2,819,119			2,643,184
Construction			89,648			68,563
SFR mortgage			232,965			233,754
Dairy & livestock and agribusiness			227,710			305,509
Municipal lease finance receivables			73,098			74,135
Consumer and other loans			76,103			69,278

Gross loans, excluding PCI loans			4,099,307			3,935,389
Less: Deferred loan fees, net			(7,748)			(8,292)

Gross loans, excluding PCI loans, net of deferred loan fees			4,091,559			3,927,097
Less: Allowance for loan losses			(59,336)			(59,156)

Net loans, excluding PCI loans			4,032,223			3,867,941

PCI Loans			84,960			93,712
Discount on PCI loans			(3,110)			(3,872)

PCI loans, net			81,850			89,840

Total loans and lease finance receivables		$	4,114,073		$	3,957,781

As of March 31, 2016, 68.77% of the total gross loan portfolio (excluding PCI loans) consisted of commercial real estate loans and 2.19% of the total loan portfolio consisted of construction loans. Substantially all of the Company’s real estate loans and construction loans are secured by real properties located in California. As of March 31, 2016, $178.9 million, or 6.35% of the total commercial real estate loans included loans secured by farmland, compared to $173.0 million, or 6.54%, at December 31, 2015. The loans secured by farmland included $135.1 million for loans secured by dairy & livestock land and $43.8 million for loans secured by agricultural land at March 31, 2016, compared to $128.4 million for loans secured by dairy & livestock land and $44.6 million for loans secured by agricultural land at December 31, 2015. As of March 31, 2016, dairy & livestock and agribusiness loans of $227.7 million were comprised of $210.2 million for dairy & livestock loans and $17.5 million for agribusiness loans, compared to $287.0 million for dairy & livestock loans and $18.5 million for agribusiness loans at December 31, 2015.

At March 31, 2016, the Company held approximately $2.03 billion of total fixed rate loans, including PCI loans.

At March 31, 2016 and December 31, 2015, loans totaling $3.02 billion and $2.91 billion, respectively, were pledged to secure the borrowings and available lines of credit from the FHLB and the Federal Reserve Bank.

Credit Quality Indicators

Central to our credit risk management is our loan risk rating system. The originating officer assigns each loan an initial risk rating, which is reviewed and confirmed or changed, as appropriate, by credit management. Approvals are made based upon the amount of inherent credit risk specific to the transaction and are reviewed for appropriateness by senior line and credit management personnel. Credits are monitored by line and credit management personnel for deterioration in a borrower’s financial condition, which would impact the ability of the borrower to perform under the contract. Risk ratings are adjusted as necessary.

Loans are risk rated into the following categories (Credit Quality Indicators): Pass, Special Mention, Substandard, Doubtful and Loss. Each of these groups is assessed for the proper amount to be used in determining the adequacy of our allowance for losses. These categories can be described as follows:

Pass – These loans, including loans on the Bank’s internal watch list, range from minimal credit risk to lower than average, but still acceptable, credit risk. Watch list loans usually require more than normal management attention. Loans on the watch list may involve borrowers with adverse financial trends, higher debt/equity ratios, or weaker liquidity positions, but not to the degree of being considered a defined weakness or problem loan where risk of loss may be apparent.

Special Mention — Loans assigned to this category have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in the deterioration of the repayment prospects for the asset or the Company’s credit position at some future date. Special mention assets are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification.

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

Doubtful – Loans classified as doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or the liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.

Loss — Loans classified as loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be effected in the future.

The following table summarizes each type of loans, excluding PCI loans, according to our internal risk ratings for the periods presented.


	March 31, 2016
	Pass		Special Mention		Substandard		Doubtful & Loss		Total
	(Dollars in thousands)
Commercial and industrial	$	428,824	$	30,887	$	7,211	$	39	$	466,961
SBA		94,609		12,729		6,127		238		113,703
Real estate:
Commercial real estate
Owner occupied		810,362		80,555		10,831		-		901,748
Non-owner occupied		1,861,506		22,715		33,150		-		1,917,371
Construction
Speculative		48,091		-		7,651		-		55,742
Non-speculative		33,906		-		-		-		33,906
SFR mortgage		226,444		3,535		2,986		-		232,965
Dairy & livestock and agribusiness		173,056		48,009		6,645		-		227,710
Municipal lease finance receivables		68,157		4,941		-		-		73,098
Consumer and other loans		71,424		1,839		2,753		87		76,103

Total gross loans, excluding PCI loans	$	3,816,379	$	205,210	$	77,354	$	364	$	4,099,307


	December 31, 2015
	Pass		Special Mention		Substandard		Doubtful & Loss		Total
	(Dollars in thousands)
Commercial and industrial	$	398,651	$	33,000	$	2,403	$	45	$	434,099
SBA		87,441		13,169		4,854		1,403		106,867
Real estate:
Commercial real estate
Owner occupied		772,114		54,758		11,481		-		838,353
Non-owner occupied		1,741,615		26,170		37,046		-		1,804,831
Construction
Speculative		38,186		-		7,651		-		45,837
Non-speculative		22,726		-		-		-		22,726
SFR mortgage		227,207		3,556		2,991		-		233,754
Dairy & livestock and agribusiness		285,647		19,862		-		-		305,509
Municipal lease finance receivables		69,194		4,941		-		-		74,135
Consumer and other loans		64,844		1,618		2,708		108		69,278

Total gross loans, excluding PCI loans	$	3,707,625	$	157,074	$	69,134	$	1,556	$	3,935,389

Allowance for Loan Losses

The Company’s Credit Management Division is responsible for regularly reviewing the ALLL methodology, including loss factors and economic risk factors. The Bank’s Director Loan Committee provides Board oversight of the ALLL process and approves the ALLL methodology on a quarterly basis.

Our methodology for assessing the appropriateness of the allowance is conducted on a regular basis and considers the Bank’s overall loan portfolio. Refer to Note 3 – Summary of Significant Accounting Policies of the 2015 Annual Report on Form 10-K for the year ended December 31, 2015 for a more detailed discussion concerning the allowance for loan losses.

Management believes that the ALLL was appropriate at March 31, 2016 and December 31, 2015. No assurance can be given that economic conditions which adversely affect the Company’s service areas or other circumstances will not be reflected in increased provisions for loan losses in the future.

The following tables present the balance and activity related to the allowance for loan losses for held-for-investment loans, excluding PCI loans, by portfolio segment for the periods presented.


	For the Three Months Ended March 31, 2016
	Ending Balance December 31, 2015		Charge-offs		Recoveries		Provision for Loan Losses		Ending Balance March 31, 2016
	(Dollars in thousands)
Commercial and industrial	$	8,588	$	(61)	$	63	$	141	$	8,731
SBA		993		-		1		242		1,236
Real estate:
Commercial real estate		36,995		-		139		1,152		38,286
Construction		2,389		-		9		(1,247)		1,151
SFR mortgage		2,103		(102)		-		201		2,202
Dairy & livestock and agribusiness		6,029		-		99		(952)		5,176
Municipal lease finance receivables		1,153		-		-		12		1,165
Consumer and other loans		906		-		32		451		1,389
Unallocated (1)		-		-		-		-		-

Total allowance for loan losses	$	59,156	$	(163)	$	343	$	-	$	59,336


	For the Three Months Ended March 31, 2015
	Ending Balance December 31, 2014		Charge-offs		Recoveries		Provision for Loan Losses		Ending Balance March 31, 2015
	(Dollars in thousands)
Commercial and industrial	$	7,074	$	(134)	$	35	$	527	$	7,502
SBA		2,557		(33)		34		(362)		2,196
Real estate:
Commercial real estate		33,373		-		857		618		34,848
Construction		988		-		9		46		1,043
SFR mortgage		2,344		-		185		(104)		2,425
Dairy & livestock and agribusiness		5,479		-		99		(1,832)		3,746
Municipal lease finance receivables		1,412		-		-		(382)		1,030
Consumer and other loans		1,262		(177)		9		(269)		825
Unallocated (1)		5,336		-		-		1,758		7,094

Total allowance for loan losses	$	59,825	$	(344)	$	1,228	$	-	$	60,709

(1)

Based upon changes to our ALLL methodology, as described in Note 3 — Summary of Significant Accounting Policies of the 2015 Annual Report on Form 10-K for the year ended December 31, 2015, beginning with the fourth quarter of 2015 and coinciding with the implementation of the new ALLL methodology, the Bank’s previous “unallocated reserve” was absorbed into the qualitative component of the allowance.

The following tables present the recorded investment in loans held-for-investment, excluding PCI loans, and the related allowance for loan losses by portfolio segment, based on the Company’s methodology for determining the allowance for loan losses for the periods presented.


	March 31, 2016
	Recorded Investment in Loans				Allowance for Loan Losses

	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Individually Evaluated for Impairment		Collectively Evaluated for Impairment
	(Dollars in thousands)
Commercial and industrial	$	1,477	$	465,484	$	575	$	8,156
SBA		3,304		110,399		55		1,181
Real estate:
Commercial real estate		35,577		2,783,542		-		38,286
Construction		7,651		81,997		48		1,103
SFR mortgage		5,874		227,091		16		2,186
Dairy & livestock and agribusiness		714		226,996		-		5,176
Municipal lease finance receivables		-		73,098		-		1,165
Consumer and other loans		868		75,235		-		1,389
Unallocated (1)		-		-		-		-

Total	$	55,465	$	4,043,842	$	694	$	58,642


	March 31, 2015
	Recorded Investment in Loans				Allowance for Loan Losses

	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Individually Evaluated for Impairment		Collectively Evaluated for Impairment
	(Dollars in thousands)
Commercial and industrial	$	1,611	$	401,989	$	592	$	6,910
SBA		3,158		123,227		42		2,154
Real estate:
Commercial real estate		41,886		2,457,297		154		34,694
Construction		7,651		47,695		-		1,043
SFR mortgage		5,913		199,219		-		2,425
Dairy & livestock and agribusiness		7,277		166,164		-		3,746
Municipal lease finance receivables		-		76,220		-		1,030
Consumer and other loans		881		69,868		6		819
Unallocated (1)		-		-		-		7,094

Total	$	68,377	$	3,541,679	$	794	$	59,915

(1)

Past Due and Nonperforming Loans

We seek to manage asset quality and control credit risk through diversification of the loan portfolio and the application of policies designed to promote sound underwriting and loan monitoring practices. The Bank’s Credit Management Division is in charge of monitoring asset quality, establishing credit policies and procedures and enforcing the consistent application of these policies and procedures across the Bank. Reviews of nonperforming, past due loans and larger credits, designed to identify potential charges to the allowance for loan losses, and to determine the adequacy of the allowance, are conducted on an ongoing basis. These reviews consider such factors as the financial strength of borrowers and any guarantors, the value of the applicable collateral, loan loss experience, estimated loan losses, growth in the loan portfolio, prevailing economic conditions and other factors. Refer to Note 3 – Summary of Significant Accounting Policies, included in our Annual Report on Form 10-K for the year ended December 31, 2015, for additional discussion concerning the Bank’s policy for past due and nonperforming loans.

A loan is reported as a Troubled Debt Restructured (“TDR”) when the Bank grants a concession(s) to a borrower experiencing financial difficulties that the Bank would not otherwise consider. Examples of such concessions include a reduction in the interest rate, deferral of principal or accrued interest, extending the payment due dates or loan maturity date(s), or providing a lower interest rate than would be normally available for new debt of similar risk. As a result of these concessions, restructured loans are classified as impaired. Impairment reserves on non-collateral dependent restructured loans are measured by comparing the present value of expected future cash flows on the restructured loans discounted at the interest rate of the original loan agreement to the loan’s carrying value. These impairment reserves are recognized as a specific component to be provided for in the allowance for loan losses.

Generally, when loans are identified as impaired they are moved to our Special Assets Department. When we identify a loan as impaired, we measure the loan for potential impairment using discounted cash flows, unless the loan is determined to be collateral dependent. In these cases, we use the current fair value of collateral, less selling costs. Generally, the determination of fair value is established through obtaining external appraisals of the collateral.

The following tables present the recorded investment in, and the aging of, past due and nonaccrual loans, excluding PCI loans, by type of loans for the periods presented.


	March 31, 2016
	30-59 Days Past Due		60-89 Days Past Due		Total Past Due and Accruing		Nonaccrual (1)		Current		Total Loans and Financing Receivables
	(Dollars in thousands)
Commercial and industrial	$	111	$	-	$	111	$	622	$	466,228		466,961
SBA		-		-		-		2,435		111,268		113,703
Real estate:
Commercial real estate
Owner occupied		-		-		-		2,086		899,662		901,748
Non-owner occupied		-		-		-		9,996		1,907,375		1,917,371
Construction
Speculative (2)		-		-		-		-		55,742		55,742
Non-speculative		-		-		-		-		33,906		33,906
SFR mortgage		625		-		625		2,549		229,791		232,965
Dairy & livestock and agribusiness		-		-		-		-		227,710		227,710
Municipal lease finance receivables		-		-		-		-		73,098		73,098
Consumer and other loans		47		117		164		456		75,483		76,103

Total gross loans, excluding PCI Loans	$	783	$	117	$	900	$	18,144	$	4,080,263	$	4,099,307

(1)

As of March 31, 2016, $16.1 million of nonaccruing loans were current, $20,000 were 30-59 days past due, $836,000 were 60-89 days past due and $1.2 million were 90+ days past due.

(2)

Speculative construction loans are generally for properties where there is no identified buyer or renter.


	December 31, 2015
	30-59 Days Past Due		60-89 Days Past Due		Total Past Due and Accruing		Nonaccrual (1)		Current		Total Loans and Financing Receivables
					(Dollars in thousands)
Commercial and industrial	$	-	$	-	$	-	$	704	$	433,395	$	434,099
SBA		-		-		-		2,567		104,300		106,867
Real estate:
Commercial real estate
Owner occupied		-		-		-		4,174		834,179		838,353
Non-owner occupied		354		-		354		10,367		1,794,110		1,804,831
Construction
Speculative (2)		-		-		-		-		45,837		45,837
Non-speculative		-		-		-		-		22,726		22,726
SFR mortgage		1,082		-		1,082		2,688		229,984		233,754
Dairy & livestock and agribusiness		-		-		-		-		305,509		305,509
Municipal lease finance receivables		-		-		-		-		74,135		74,135
Consumer and other loans		-		-		-		519		68,759		69,278

Total gross loans, excluding PCI Loans	$	1,436	$	-	$	1,436	$	21,019	$	3,912,934	$	3,935,389

(1)

As of December 31, 2015, $7.9 million of nonaccruing loans were current, $456,000 were 30-59 days past due, $9.1 million were 60-89 days past due and $3.5 million were 90+ days past due.

(2)

Speculative construction loans are generally for properties where there is no identified buyer or renter.

Impaired Loans

At March 31, 2016, the Company had impaired loans, excluding PCI loans, of $55.5 million. Of this amount, there was $12.1 million of nonaccrual commercial real estate loans, $2.5 million of nonaccrual single-family residential (“SFR”) mortgage loans, $2.4 million of nonaccrual SBA loans, $622,000 of nonaccrual commercial and industrial loans, and $456,000 of nonaccrual consumer and other loans. These impaired loans included $49.7 million of loans whose terms were modified in a troubled debt restructuring, of which $12.4 million were classified as nonaccrual. The remaining balance of $37.3 million consisted of 35 loans performing according to the restructured terms. The impaired loans had a specific allowance of $694,000 at March 31, 2016. At December 31, 2015, the Company had classified as impaired, loans, excluding PCI loans, with a balance of $63.7 million with a related allowance of $669,000.

The following tables present information for held-for-investment loans, excluding PCI loans, individually evaluated for impairment by type of loans, as and for the periods presented.


	As of and For the Three Months Ended March 31, 2016
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
	(Dollars in thousands)
With no related allowance recorded:
Commercial and industrial	$	805	$	1,677	$	-	$	831	$	7
SBA		3,050		3,765		-		3,089		13
Real estate:
Commercial real estate
Owner occupied		5,315		6,507		-		5,095		51
Non-owner occupied		30,262		33,368		-		30,400		343
Construction
Speculative		-		-		-		-		-
Non-speculative		-		-		-		-		-
SFR mortgage		5,499		6,406		-		5,512		27
Dairy & livestock and agribusiness		714		714		-		710		8
Municipal lease finance receivables		-		-		-		-		-
Consumer and other loans		868		1,420		-		888		4

Total		46,513		53,857		-		46,525		453

With a related allowance recorded:
Commercial and industrial		672		741		575		687		3
SBA		254		274		55		254		2
Real estate:
Commercial real estate
Owner occupied		-		-		-		-		-
Non-owner occupied		-		-		-		-		-
Construction
Speculative		7,651		7,651		48		7,651		97
Non-speculative		-		-		-		-		-
SFR mortgage		375		426		16		515		2
Dairy & livestock and agribusiness		-		-		-		-		-
Municipal lease finance receivables		-		-		-		-		-
Consumer and other loans		-		-		-		-		-

Total		8,952		9,092		694		9,107		104

Total impaired loans	$	55,465	$	62,949	$	694	$	55,632	$	557


	As of and For the Three Months Ended March 31, 2015
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
	(Dollars in thousands)
With no related allowance recorded:
Commercial and industrial	$	1,004	$	1,819	$	-	$	1,017	$	8
SBA		3,117		3,667		-		3,177		13
Real estate:
Commercial real estate
Owner occupied		6,117		7,167		-		6,185		64
Non-owner occupied		34,808		42,718		-		35,194		350
Construction
Speculative		7,651		7,651		-		7,651		96
Non-speculative		-		-		-		-		-
SFR mortgage		5,913		6,642		-		5,940		27
Dairy & livestock and agribusiness		7,277		8,991		-		7,533		85
Municipal lease finance receivables		-		-		-		-		-
Consumer and other loans		783		1,289		-		836		4

Total		66,670		79,944		-		67,533		647

With a related allowance recorded:
Commercial and industrial		607		680		592		617		-
SBA		41		54		42		45		-
Real estate:
Commercial real estate
Owner occupied		-		-		-		-		-
Non-owner occupied		961		1,278		154		973		-
Construction
Speculative		-		-		-		-		-
Non-speculative		-		-		-		-		-
SFR mortgage		-		-		-		-		-
Dairy & livestock and agribusiness		-		-		-		-		-
Municipal lease finance receivables		-		-		-		-		-
Consumer and other loans		98		107		6		99		-

Total		1,707		2,119		794		1,734		-

Total impaired loans	$	68,377	$	82,063	$	794	$	69,267	$	647


	As of December 31, 2015
	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(Dollars in thousands)
With no related allowance recorded:
Commercial and industrial	$	1,017	$	1,894	$	-
SBA		3,207		3,877		-
Real estate:
Commercial real estate
Owner occupied		6,252		7,445		-
Non-owner occupied		34,041		37,177		-
Construction
Speculative		-		-		-
Non-speculative		-		-		-
SFR mortgage		5,665		6,453		-
Dairy & livestock and agribusiness		3,685		3,684		-
Municipal lease finance receivables		-		-		-
Consumer and other loans		890		1,454		-

Total		54,757		61,984		-

With a related allowance recorded:
Commercial and industrial		626		695		626
SBA		41		47		10
Real estate:
Commercial real estate
Owner occupied		-		-		-
Non-owner occupied		-		-		-
Construction
Speculative		7,651		7,651		13
Non-speculative		-		-		-
SFR mortgage		588		640		20
Dairy & livestock and agribusiness		-		-		-
Municipal lease finance receivables		-		-		-
Consumer and other loans		43		45		-

Total		8,949		9,078		669

Total impaired loans	$	63,706	$	71,062	$	669

The Company recognizes the charge-off of the impairment allowance on impaired loans in the period in which a loss is identified for collateral dependent loans. Therefore, the majority of the nonaccrual loans as of March 31, 2016 and December 31, 2015 have already been written down to the estimated net realizable value. The impaired loans with a related allowance recorded are on nonaccrual loans where a charge-off is not yet processed, on nonaccrual SFR loans where there is a potential modification in process, or on smaller balance non-collateral dependent loans.

Reserve for Unfunded Loan Commitments

The allowance for off-balance sheet credit exposure relates to commitments to extend credit, letters of credit and undisbursed funds on lines of credit. The Company evaluates credit risk associated with the off-balance sheet loan commitments at the same time it evaluates credit risk associated with the loan and lease portfolio. There was no provision or recapture of provision for unfunded loan commitments for the three months ended March 31, 2016, compared with a recapture of provision for unfunded loan commitments of $500,000 for the same period of 2015. As of March 31, 2016 and December 31, 2015, the balance in this reserve was $7.2 million and was included in other liabilities.

Troubled Debt Restructurings (“TDRs”)

Loans that are reported as TDRs are considered impaired and charge-off amounts are taken on an individual loan basis, as deemed appropriate. The majority of restructured loans are loans for which the terms of repayment have been renegotiated, resulting in a reduction in interest rate or deferral of principal. Refer to Note 3 –Summary of Significant Accounting Policies, included in our Annual Report on Form 10-K for the year ended December 31, 2015 for a more detailed discussion regarding TDRs.

As of March 31, 2016, there were $49.7 million of loans classified as a TDR, of which $12.4 million were nonperforming and $37.3 million were performing. TDRs on accrual status are comprised of loans that were accruing interest at the time of restructuring or have demonstrated repayment performance in compliance with the restructured terms for a sustained period and for which the Company anticipates full repayment of both principal and interest. At March 31, 2016, performing TDRs were comprised of 14 commercial real estate loans of $23.5 million, one construction loan of $7.7 million, one dairy & livestock and agribusiness loan of $714,000, 11 SFR mortgage loans of $3.3 million, five commercial and industrial loans of $855,000, one consumer loan of $412,000 and two SBA loans of $869,000. There were no loans removed from TDR classification during the three months ended March 31, 2016 and 2015.

The majority of TDRs have no specific allowance allocated as any impairment amount is normally charged off at the time a probable loss is determined. We have allocated $642,000 and $607,000 of specific allowance to TDRs as of March 31, 2016 and December 31, 2015, respectively.

The following table provides a summary of the activity related to TDRs for the periods presented.


	For the Three Months Ended March 31,
	2016		2015
	(Dollars in thousands)
Performing TDRs:
Beginning balance	$	42,687	$	53,589
New modifications		1,006		-
Payoffs and payments, net		(6,372)		(8,729)
TDRs returned to accrual status		-		516
TDRs placed on nonaccrual status		-		-

Ending balance	$	37,321	$	45,376

Nonperforming TDRs:
Beginning balance	$	12,622	$	20,285
New modifications		82		-
Charge-offs		(38)		-
Payoffs and payments, net		(306)		(2,995)
TDRs returned to accrual status		-		(516)
TDRs placed on nonaccrual status		-		-

Ending balance	$	12,360	$	16,774

Total TDRs	$	49,681	$	62,150

The following tables summarize loans modified as troubled debt restructurings for the periods presented.

Modifications (1)


	For the Three Months Ended March 31, 2016
	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Outstanding Recorded Investment at March 31, 2016		Financial Effect Resulting From Modifications (2)
	(Dollars in thousands)
SBA:
Interest rate reduction		-		-		-		-		-
Change in amortization period or maturity		1		194		194		193		28
Real estate:
Commercial real estate:
Owner occupied
Interest rate reduction		-		-		-		-		-
Change in amortization period or maturity		2		812		812		778		-
Non-owner occupied
Interest rate reduction		-		-		-		-		-
Change in amortization period or maturity		-		-		-		-		-
Consumer:
Interest rate reduction		-		-		-		-		-
Change in amortization period or maturity		2		82		82		75		-

Total loans		5	$	1,088	$	1,088	$	1,046	$	28

	For the Three Months Ended March 31, 2015
	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Outstanding Recorded Investment at March 31, 2015		Financial Effect Resulting From Modifications (2)
	(Dollars in thousands)
SBA:
Interest rate reduction		-		-		-		-		-
Change in amortization period or maturity		-		-		-		-		-
Real estate:
Commercial real estate:
Owner occupied
Interest rate reduction		-		-		-		-		-
Change in amortization period or maturity		-		-		-		-		-
Non-owner occupied
Interest rate reduction		-		-		-		-		-
Change in amortization period or maturity		-		-		-		-		-
Consumer:
Interest rate reduction		-		-		-		-		-
Change in amortization period or maturity		-		-		-		-		-

Total loans		-	$	-	$	-	$	-	$	-

(1)

The tables above exclude modified loans that were paid off prior to the end of the period.

(2)

Financial effects resulting from modifications represent charge-offs and specific allowance recorded at modification date.

As of March 31, 2016, there were no loans that were previously modified as a TDR within the previous 12 months that subsequently defaulted during the three months ended March 31, 2016.