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Loans and Lease Finance Receivables and Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2021

Receivables [Abstract]

Summary of Components of Loans and Lease Finance Receivables, Excluding PCI Loans

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


	June 30, 2021				December 31, 2020
	(Dollars in thousands)

Commercial real estate	$	5,670,696			$	5,501,509
Construction		88,280				85,145
SBA		291,778				303,896
SBA - Paycheck Protection Program (PPP)		657,815				882,986
Commercial and industrial		749,117				812,062
Dairy & livestock and agribusiness		257,781				361,146
Municipal lease finance receivables		44,657				45,547
SFR mortgage		237,124				270,511
Consumer and other loans		74,062				86,006
Total loans, at amortized cost		8,071,310				8,348,808
Less: Allowance for credit losses		(69,342	)			(93,692	)
Total loans and lease finance receivables, net	$	8,001,968			$	8,255,116

Summary of loans by type and origination year, according to our internal risk ratings

The following table summarizes loans by type and origination year, according to our internal risk ratings as of the dates presented.


	Origination Year																								Revolving loans amortized				Revolving loans converted to
June 30, 2021	2021				2020				2019				2018				2017				Prior				cost basis				term loans				Total
	(Dollars in thousands)
Commercial real estate loans:
Risk Rating:
Pass	$	590,633			$	983,583			$	643,212			$	569,056			$	536,282			$	1,918,411			$	179,984			$	36,916			$	5,458,077
Special Mention		10,350				9,178				9,165				29,047				48,258				67,790				4,584				16,348				194,720
Substandard		2,450				-				471				-				5,057				9,600				-				321				17,899
Doubtful & Loss		-				-				-				-				-				-				-				-				-
Total Commercial real estate loans:	$	603,433			$	992,761			$	652,848			$	598,103			$	589,597			$	1,995,801			$	184,568			$	53,585			$	5,670,696

Construction loans:
Risk Rating:
Pass	$	3,707			$	17,859			$	6,993			$	3,038			$	-			$	-			$	47,207			$	-			$	78,804
Special Mention		-				-				-				7,793				-				-				1,683				-				9,476
Substandard		-				-				-				-				-				-				-				-				-
Doubtful & Loss		-				-				-				-				-				-				-				-				-
Total Construction loans:	$	3,707			$	17,859			$	6,993			$	10,831			$	-			$	-			$	48,890			$	-			$	88,280

SBA loans:
Risk Rating:
Pass	$	34,423			$	42,665			$	11,315			$	42,296			$	47,190			$	95,505			$	-			$	-			$	273,394
Special Mention		-				-				-				-				4,186				5,988				-				-				10,174
Substandard		-				-				-				864				4,487				2,859				-				-				8,210
Doubtful & Loss		-				-				-				-				-				-				-				-				-
Total SBA loans:	$	34,423			$	42,665			$	11,315			$	43,160			$	55,863			$	104,352			$	-			$	-			$	291,778

SBA - PPP loans:
Risk Rating:
Pass	$	395,349			$	260,963			$	-			$	-			$	-			$	-			$	-			$	-			$	656,312
Special Mention		-				-				-				-				-				-				-				-				-
Substandard		-				1,503				-				-				-				-				-				-				1,503
Doubtful & Loss		-				-				-				-				-				-				-				-				-
Total SBA - PPP loans:	$	395,349			$	262,466			$	-			$	-			$	-			$	-			$	-			$	-			$	657,815

Commercial and industrial loans:
Risk Rating:
Pass	$	50,590			$	93,190			$	147,698			$	58,447			$	43,464			$	87,688			$	234,803			$	6,423			$	722,303
Special Mention		467				1,703				1,726				2,154				635				220				6,951				221				14,077
Substandard		2,643				1,498				133				2,163				1,305				697				2,905				1,393				12,737
Doubtful & Loss		-				-				-				-				-				-				-				-				-
Total Commercial and industrial loans:	$	53,700			$	96,391			$	149,557			$	62,764			$	45,404			$	88,605			$	244,659			$	8,037			$	749,117


	Origination Year																								Revolving loans amortized				Revolving loans converted to
June 30, 2021	2021				2020				2019				2018				2017				Prior				cost basis				term loans				Total
	(Dollars in thousands)
Dairy & livestock and agribusiness loans:
Risk Rating:
Pass	$	-			$	1,014			$	1,527			$	1,005			$	225			$	349			$	226,192			$	587			$	230,899
Special Mention		-				-				-				330				-				857				11,152				8,321				20,660
Substandard		-				-				-				118				-				-				-				6,104				6,222
Doubtful & Loss		-				-				-				-				-				-				-				-				-
Total Dairy & livestock and agribusiness loans:	$	-			$	1,014			$	1,527			$	1,453			$	225			$	1,206			$	237,344			$	15,012			$	257,781

Municipal lease finance receivables loans:
Risk Rating:
Pass	$	5,262			$	8,122			$	-			$	279			$	10,061			$	20,557			$	-			$	-			$	44,281
Special Mention		-				-				-				-				-				376				-				-				376
Substandard		-				-				-				-				-				-				-				-				-
Doubtful & Loss		-				-				-				-				-				-				-				-				-
Total Municipal lease finance receivables loans:	$	5,262			$	8,122			$	-			$	279			$	10,061			$	20,933			$	-			$	-			$	44,657

SFR mortgage loans:
Risk Rating:
Pass	$	19,740			$	53,029			$	47,707			$	23,121			$	19,398			$	71,945			$	152			$	-			$	235,092
Special Mention		-				-				-				-				-				192				-				-				192
Substandard		-				-				-				-				-				1,420				-				420				1,840
Doubtful & Loss		-				-				-				-				-				-				-				-				-
Total SFR mortgage loans:	$	19,740			$	53,029			$	47,707			$	23,121			$	19,398			$	73,557			$	152			$	420			$	237,124

Consumer and other loans:
Risk Rating:
Pass	$	3,204			$	3,091			$	1,659			$	686			$	778			$	2,020			$	57,531			$	2,403			$	71,372
Special Mention		976				-				-				-				-				88				993				-				2,057
Substandard		-				-				-				-				-				169				5				459				633
Doubtful & Loss		-				-				-				-				-				-				-				-				-
Total Consumer and other loans:	$	4,180			$	3,091			$	1,659			$	686			$	778			$	2,277			$	58,529			$	2,862			$	74,062

Total Loans:
Risk Rating:
Pass	$	1,102,908			$	1,463,516			$	860,111			$	697,928			$	657,398			$	2,196,475			$	745,869			$	46,329			$	7,770,534
Special Mention		11,793				10,881				10,891				39,324				53,079				75,511				25,363				24,890				251,732
Substandard		5,093				3,001				604				3,145				10,849				14,745				2,910				8,697				49,044
Doubtful & Loss		-				-				-				-				-				-				-				-				-
Total Loans:	$	1,119,794			$	1,477,398			$	871,606			$	740,397			$	721,326			$	2,286,731			$	774,142			$	79,916			$	8,071,310


	Origination Year																								Revolving loans amortized				Revolving loans converted to
December 31, 2020	2020				2019				2018				2017				2016				Prior				cost basis				term loans				Total
	(Dollars in thousands)
Commercial real estate loans:
Risk Rating:
Pass	$	979,499			$	691,091			$	607,753			$	617,640			$	550,105			$	1,646,876			$	192,583			$	24,548			$	5,310,095
Special Mention		9,332				7,162				30,049				43,870				17,398				49,840				5,720				994				164,365
Substandard		-				491				2,157				7,382				2,528				13,790				360				341				27,049
Doubtful & Loss		-				-				-				-				-				-				-				-				-
Total Commercial real estate loans:	$	988,831			$	698,744			$	639,959			$	668,892			$	570,031			$	1,710,506			$	198,663			$	25,883			$	5,501,509

Construction loans:
Risk Rating:
Pass	$	14,511			$	9,350			$	14,945			$	2,258			$	-			$	4			$	44,077			$	-			$	85,145
Special Mention		-				-				-				-				-				-				-				-				-
Substandard		-				-				-				-				-				-				-				-				-
Doubtful & Loss		-				-				-				-				-				-				-				-				-
Total Construction loans:	$	14,511			$	9,350			$	14,945			$	2,258			$	-			$	4			$	44,077			$	-			$	85,145

SBA loans:
Risk Rating:
Pass	$	47,901			$	12,821			$	44,950			$	58,839			$	26,136			$	86,085			$	-			$	2,976			$	279,708
Special Mention		-				-				-				5,446				1,336				5,648				-				-				12,430
Substandard		-				-				904				5,503				1,554				3,797				-				-				11,758
Doubtful & Loss		-				-				-				-				-				-				-				-				-
Total SBA loans:	$	47,901			$	12,821			$	45,854			$	69,788			$	29,026			$	95,530			$	-			$	2,976			$	303,896

SBA - PPP loans:
Risk Rating:
Pass	$	882,986			$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	882,986
Special Mention		-				-				-				-				-				-				-				-				-
Substandard		-				-				-				-				-				-				-				-				-
Doubtful & Loss		-				-				-				-				-				-				-				-				-
Total SBA - PPP loans:	$	882,986			$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	882,986

Commercial and industrial loans:
Risk Rating:
Pass	$	104,478			$	168,050			$	62,453			$	56,043			$	32,149			$	76,019			$	257,250			$	6,058			$	762,500
Special Mention		1,995				1,081				1,892				1,028				95				4,882				17,395				1,132				29,500
Substandard		4,346				860				3,996				2,282				285				94				6,677				1,522				20,062
Doubtful & Loss		-				-				-				-				-				-				-				-				-
Total Commercial and industrial loans:	$	110,819			$	169,991			$	68,341			$	59,353			$	32,529			$	80,995			$	281,322			$	8,712			$	812,062


	Origination Year																								Revolving loans amortized				Revolving loans converted to
December 31, 2020	2020				2019				2018				2017				2016				Prior				cost basis				term loans				Total
	(Dollars in thousands)
Dairy & livestock and agribusiness loans:
Risk Rating:
Pass	$	1,041			$	1,765			$	1,199			$	5,680			$	120			$	320			$	319,211			$	363			$	329,699
Special Mention		878				-				364				-				-				-				13,255				1,511				16,008
Substandard		-				-				784				693				2,285				-				-				11,677				15,439
Doubtful & Loss		-				-				-				-				-				-				-				-				-
Total Dairy & livestock and agribusiness loans:	$	1,919			$	1,765			$	2,347			$	6,373			$	2,405			$	320			$	332,466			$	13,551			$	361,146

Municipal lease finance receivables loans:
Risk Rating:
Pass	$	8,478			$	-			$	2,556			$	10,249			$	3,586			$	20,266			$	-			$	-			$	45,135
Special Mention		-				-				-				-				-				412				-				-				412
Substandard		-				-				-				-				-				-				-				-				-
Doubtful & Loss		-				-				-				-				-				-				-				-				-
Total Municipal lease finance receivables loans:	$	8,478			$	-			$	2,556			$	10,249			$	3,586			$	20,678			$	-			$	-			$	45,547

SFR mortgage loans:
Risk Rating:
Pass	$	65,463			$	59,596			$	29,142			$	22,452			$	27,192			$	62,593			$	3			$	-			$	266,441
Special Mention		-				-				-				-				-				452				-				-				452
Substandard		-				-				-				-				229				2,957				-				432				3,618
Doubtful & Loss		-				-				-				-				-				-				-				-				-
Total SFR mortgage loans:	$	65,463			$	59,596			$	29,142			$	22,452			$	27,421			$	66,002			$	3			$	432			$	270,511

Consumer and other loans:
Risk Rating:
Pass	$	8,557			$	2,077			$	871			$	969			$	1,586			$	961			$	67,774			$	1,688			$	84,483
Special Mention		-				-				-				-				-				91				517				22				630
Substandard		-				-				-				-				-				172				-				721				893
Doubtful & Loss		-				-				-				-				-				-				-				-				-
Total Consumer and other loans:	$	8,557			$	2,077			$	871			$	969			$	1,586			$	1,224			$	68,291			$	2,431			$	86,006

Total Loans:
Risk Rating:
Pass	$	2,112,914			$	944,750			$	763,869			$	774,130			$	640,874			$	1,893,124			$	880,898			$	35,633			$	8,046,192
Special Mention		12,205				8,243				32,305				50,344				18,829				61,325				36,887				3,659				223,797
Substandard		4,346				1,351				7,841				15,860				6,881				20,810				7,037				14,693				78,819
Doubtful & Loss		-				-				-				-				-				-				-				-				-
Total Loans:	$	2,129,465			$	954,344			$	804,015			$	840,334			$	666,584			$	1,975,259			$	924,822			$	53,985			$	8,348,808

Schedule of Balance and Activity Related to Allowance for Loan Losses for Held-for-Investment Loans by Type

The following tables present the balance and activity related to the allowance for credit losses for held-for-investment loans by type for the periods presented.


	Three Months Ended June 30, 2021
	Ending Balance March 31, 2021				Charge-offs				Recoveries				(Recapture of) Provision for Credit Losses				Ending Balance June 30, 2021
	(Dollars in thousands)
Commercial real estate	$	56,572			$	-			$	-			$	(1,372	)		$	55,200
Construction		1,878				-				41				(94	)			1,825
SBA		2,512				-				4				30				2,546
Commercial and industrial		6,439				(500	)			2				(274	)			5,667
Dairy & livestock and agribusiness		2,722				-				-				53				2,775
Municipal lease finance receivables		35				-				-				32				67
SFR mortgage		298				-				-				(14	)			284
Consumer and other loans		1,349				(10	)			-				(361	)			978
Total allowance for credit losses	$	71,805			$	(510	)		$	47			$	(2,000	)		$	69,342


	Three Months Ended June 30, 2020
	Ending Balance March 31, 2020				Charge-offs				Recoveries				Provision for (Recapture of) Credit Losses				Ending Balance June 30, 2020
	(Dollars in thousands)
Commercial real estate	$	58,427			$	-			$	-			$	16,501			$	74,928
Construction		4,632				-				3				(2,345	)			2,290
SBA		3,946				(156	)			3				(142	)			3,651
Commercial and industrial		9,387				(11	)			3				(1,388	)			7,991
Dairy & livestock and agribusiness		4,266				-				-				(887	)			3,379
Municipal lease finance receivables		277				-				-				25				302
SFR mortgage		281				-				-				(59	)			222
Consumer and other loans		1,425				-				-				(205	)			1,220
Total allowance for credit losses	$	82,641			$	(167	)		$	9			$	11,500			$	93,983


	Six Months Ended June 30, 2021
	Ending Balance December 31, 2020				Charge-offs				Recoveries				(Recapture of) Provision for Credit Losses				Ending Balance June 30, 2021
	(Dollars in thousands)
Commercial real estate	$	75,439			$	-			$	-			$	(20,239	)		$	55,200
Construction		1,934				-				44				(153	)			1,825
SBA		2,992				-				8				(454	)			2,546
Commercial and industrial		7,142				(2,975	)			4				1,496				5,667
Dairy & livestock and agribusiness		3,949				-				-				(1,174	)			2,775
Municipal lease finance receivables		74				-				-				(7	)			67
SFR mortgage		367				-				79				(162	)			284
Consumer and other loans		1,795				(10	)			-				(807	)			978
Total allowance for credit losses	$	93,692			$	(2,985	)		$	135			$	(21,500	)		$	69,342


	Six Months Ended June 30, 2020
	Ending Balance, prior to adoption of ASU 2016-13 December 31, 2019				Impact of Adoption of ASU 2016-13				Charge-offs				Recoveries				Provision for (Recapture of) Credit Losses				Ending Balance June 30, 2020
	(Dollars in thousands)
Commercial real estate	$	48,629			$	3,547			$	-			$	-			$	22,752			$	74,928
Construction		858				655				-				6				771				2,290
SBA		1,453				1,818				(156	)			3				533				3,651
Commercial and industrial		8,880				(2,442	)			(11	)			5				1,559				7,991
Dairy & livestock and agribusiness		5,255				(186	)			-				-				(1,690	)			3,379
Municipal lease finance receivables		623				(416	)			-				-				95				302
SFR mortgage		2,339				(2,043	)			-				206				(280	)			222
Consumer and other loans		623				907				(86	)			16				(240	)			1,220
Total allowance for credit losses	$	68,660			$	1,840			$	(253	)		$	236			$	23,500			$	93,983

As of June 30, 2021, the remaining outstanding balance of PPP loans was $657.8 million. As these loans are fully guaranteed by the SBA, the ACL does not include an allowance.

Schedule of Recorded Investment in, and Aging of, Past Due and Nonaccrual Loans, Excluding PCI Loans by Class of Loans

The following table presents the recorded investment in, and the aging of, past due loans (including nonaccrual loans), by type of loans as of the dates presented.


	June 30, 2021
	30-59 Days Past Due				60-89 Days Past Due				Greater than 89 Days Past Due				Total Past Due				Loans Not Past Due				Total Loans and Financing Receivables
	(Dollars in thousands)
Commercial real estate
Owner occupied	$	-			$	-			$	3,239			$	3,239			$	2,135,252			$	2,138,491
Non-owner occupied		-				-				755				755				3,531,450				3,532,205
Construction
Speculative (1)		-				-				-				-				68,175				68,175
Non-speculative		-				-				-				-				20,105				20,105
SBA		-				-				1,235				1,235				290,543				291,778
SBA - PPP		-				-				-				-				657,815				657,815
Commercial and industrial		415				42				1,413				1,870				747,247				749,117
Dairy & livestock and agribusiness		-				-				-				-				257,781				257,781
Municipal lease finance receivables		-				-				-				-				44,657				44,657
SFR mortgage		-				-				218				218				236,906				237,124
Consumer and other loans		-				-				46				46				74,016				74,062
Total loans	$	415			$	42			$	6,906			$	7,363			$	8,063,947			$	8,071,310

(1)

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


	December 31, 2020
	30-59 Days Past Due				60-89 Days Past Due				Greater than 89 Days Past Due				Total Past Due				Loans Not Past Due				Total Loans and Financing Receivables
	(Dollars in thousands)
Commercial real estate
Owner occupied	$	-			$	-			$	7,208			$	7,208			$	2,136,051			$	2,143,259
Non-owner occupied		-				-				-				-				3,358,250				3,358,250
Construction
Speculative (1)		-				-				-				-				72,126				72,126
Non-speculative		-				-				-				-				13,019				13,019
SBA		531				2,415				1,025				3,971				299,925				303,896
SBA - PPP		-				-				-				-				882,986				882,986
Commercial and industrial		608				811				2,338				3,757				808,305				812,062
Dairy & livestock and agribusiness		-				-				784				784				360,362				361,146
Municipal lease finance receivables		-				-				-				-				45,547				45,547
SFR mortgage		-				-				229				229				270,282				270,511
Consumer and other loans		-				-				-				-				86,006				86,006
Total loans	$	1,139			$	3,226			$	11,584			$	15,949			$	8,332,859			$	8,348,808

(1)

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

Amortized cost of our finance receivables and loans that are on nonaccrual status, including loans with no allowance are presented as of June 30, 2021 and December 31, 2020 by type of loan.


	June 30, 2021
	Nonaccrual with No Allowance for Credit Losses				Total Nonaccrual (1)				Loans Past Due Over 89 Days Still Accruing
	(Dollars in thousands)
Commercial real estate
Owner occupied	$	3,684			$	3,684			$	-
Non-owner occupied		755				755				-
Construction
Speculative (2)		-				-				-
Non-speculative		-				-				-
SBA		848				1,382				-
SBA - PPP		-				-				-
Commercial and industrial		406				1,818				-
Dairy & livestock and agribusiness		-				118				-
Municipal lease finance receivables		-				-				-
SFR mortgage		406				406				-
Consumer and other loans		308				308				-
Total loans	$	6,407			$	8,471			$	-

(1)

As of June 30, 2021, $1.5 million of nonaccruing loans were current, $42,000 were 60-89 days past due, and $6.9 million were 90+ days past due.

(2)

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


	December 31, 2020
	Nonaccrual with No Allowance for Credit Losses				Total Nonaccrual (1) (3)				Loans Past Due Over 89 Days Still Accruing
	(Dollars in thousands)
Commercial real estate
Owner occupied	$	7,563			$	7,563			$	-
Non-owner occupied		-				-				-
Construction
Speculative (2)		-				-				-
Non-speculative		-				-				-
SBA		2,035				2,273				-
SBA - PPP		-				-				-
Commercial and industrial		1,576				3,129				-
Dairy & livestock and agribusiness		785				785				-
Municipal lease finance receivables		430				-				-
SFR mortgage		-				430				-
Consumer and other loans		167				167				-
Total loans	$	12,556			$	14,347			$	-

(1)

As of December 31, 2020, $1.4 million of nonaccruing loans were current, $2,000 were 30-59 days past due, $1.3 million were 60-89 days past due, and $11.6 million were 90+ days past due.

(2)

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

(3)

Excludes $184,000 of guaranteed portion of nonaccrual SBA loans that are in process of collection.

Summary of pledged assets not separately reported on statement of financial position

The following table presents the recorded investment in collateral-dependent loans by type of loans as of the dates presented.


	June 30, 2021												Number of Loans
	Real Estate				Business Assets				Other				Dependent on Collateral
	(Dollars in thousands)
Commercial real estate	$	7,144			$	-			$	-				8
Construction		-				-				-				-
SBA		625				610				147				10
SBA - PPP		-				-				-				-
Commercial and industrial		387				6,475				147				22
Dairy & livestock and agribusiness		-				118				-				1
Municipal lease finance receivables		-				-				-				-
SFR mortgage		406				-				-				2
Consumer and other loans		308				-				-				3
Total collateral-dependent loans	$	8,870			$	7,203			$	294				46


	December 31, 2020												Number of Loans
	Real Estate				Business Assets				Other				Dependent on Collateral
	(Dollars in thousands)
Commercial real estate	$	7,883			$	-			$	-				8
Construction		-				-				-				-
SBA		1,761				326				185				10
SBA - PPP		-				-				-				-
Commercial and industrial		470				5,542				95				18
Dairy & livestock and agribusiness		-				785				-				1
Municipal lease finance receivables		-				-				-				-
SFR mortgage		430				-				-				2
Consumer and other loans		168				-				-				2
Total collateral-dependent loans	$	10,712			$	6,653			$	280				41

Summary of Activity Related to Troubled Debt Restructurings

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


	Three Months Ended June 30,								Six Months Ended June 30,
	2021				2020				2021				2020
	(Dollars in thousands)
Performing TDRs:
Beginning balance	$	5,813			$	2,813			$	2,159			$	3,112
New modifications		2,453				-				7,096				-
Payoffs/payments, net and other		(51	)			(42	)			(1,040	)			(341	)
TDRs returned to accrual status		-				-				-				-
TDRs placed on nonaccrual status		-				-				-				-
Ending balance	$	8,215			$	2,771			$	8,215			$	2,771
Nonperforming TDRs:
Beginning balance	$	-			$	-			$	-			$	244
New modifications		-				-				-				-
Charge-offs		-				-				-				-
Payoffs/payments, net and other		-				-				-				(244	)
TDRs returned to accrual status		-				-				-				-
TDRs placed on nonaccrual status		-				-				-				-
Ending balance	$	-			$	-			$	-			$	-
Total TDRs	$	8,215			$	2,771			$	8,215			$	2,771

Summary of Loans Modified as Troubled Debt Restructurings

The following tables summarize loans modified as TDRs for the period presented.

Modifications (1)


	For the Three Months Ended June 30, 2021
	Number of Loans				Pre-Modification Outstanding Recorded Investment				Post-Modification Outstanding Recorded Investment				Outstanding Recorded Investment at June 30, 2021				Financial Effect Resulting From Modifications (2)
	(Dollars in thousands)
Commercial real estate:
Interest rate reduction		1			$	2,453			$	2,453			$	2,450			$	-
Change in amortization period or maturity		-				-				-				-				-
Commercial and industrial:
Interest rate reduction		-				-				-				-				-
Change in amortization period or maturity		-				-				-				-				-
SFR mortgage:
Interest rate reduction		-				-				-				-				-
Change in amortization period or maturity		-				-				-				-				-
Total loans		1			$	2,453			$	2,453			$	2,450			$	-


	For the Six Months Ended June 30, 2021
	Number of Loans				Pre-Modification Outstanding Recorded Investment				Post-Modification Outstanding Recorded Investment				Outstanding Recorded Investment at June 30, 2021				Financial Effect Resulting From Modifications (2)
	(Dollars in thousands)
Commercial real estate:
Interest rate reduction		1			$	2,453			$	2,453			$	2,450			$	-
Change in amortization period or maturity		-				-				-				-				-
Commercial and industrial:
Interest rate reduction		-				-				-				-				-
Change in amortization period or maturity		2				4,643				4,643				4,443				-
SFR mortgage:
Interest rate reduction		-				-				-				-				-
Change in amortization period or maturity		-				-				-				-				-
Total loans		3			$	7,096			$	7,096			$	6,893			$	-

(1)

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

Financial effects resulting from modifications represent charge-offs and current allowance for credit losses at modification date.