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

9 Months Ended

Sep. 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.


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

Commercial real estate	$	5,734,699			$	5,501,509
Construction		77,398				85,145
SBA		307,533				303,896
SBA - Paycheck Protection Program (PPP)		330,960				882,986
Commercial and industrial		769,977				812,062
Dairy & livestock and agribusiness		279,584				361,146
Municipal lease finance receivables		47,305				45,547
SFR mortgage		231,323				270,511
Consumer and other loans		70,741				86,006
Total loans, at amortized cost		7,849,520				8,348,808
Less: Allowance for credit losses		(65,364	)			(93,692	)
Total loans and lease finance receivables, net	$	7,784,156			$	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
September 30, 2021	2021				2020				2019				2018				2017				Prior				cost basis				term loans				Total
	(Dollars in thousands)
Commercial real estate loans:
Risk Rating:
Pass	$	878,859			$	979,652			$	622,674			$	547,936			$	511,804			$	1,812,200			$	169,358			$	44,792			$	5,567,275
Special Mention		11,986				5,575				9,078				21,902				43,612				46,359				6,418				5,500				150,430
Substandard		2,446				-				463				-				4,877				8,892				-				316				16,994
Doubtful & Loss		-				-				-				-				-				-				-				-				-
Total Commercial real estate loans:	$	893,291			$	985,227			$	632,215			$	569,838			$	560,293			$	1,867,451			$	175,776			$	50,608			$	5,734,699

Construction loans:
Risk Rating:
Pass	$	7,465			$	22,258			$	7,148			$	3,142			$	-			$	-			$	37,385			$	-			$	77,398
Special Mention		-				-				-				-				-				-				-				-				-
Substandard		-				-				-				-				-				-				-				-				-
Doubtful & Loss		-				-				-				-				-				-				-				-				-
Total Construction loans:	$	7,465			$	22,258			$	7,148			$	3,142			$	-			$	-			$	37,385			$	-			$	77,398

SBA loans:
Risk Rating:
Pass	$	63,286			$	42,468			$	11,233			$	38,918			$	43,891			$	88,592			$	-			$	-			$	288,388
Special Mention		-				-				-				-				4,121				6,075				-				-				10,196
Substandard		-				-				-				840				5,471				2,638				-				-				8,949
Doubtful & Loss		-				-				-				-				-				-				-				-				-
Total SBA loans:	$	63,286			$	42,468			$	11,233			$	39,758			$	53,483			$	97,305			$	-			$	-			$	307,533

SBA - PPP loans:
Risk Rating:
Pass	$	278,560			$	50,877			$	-			$	-			$	-			$	-			$	-			$	-			$	329,437
Special Mention		-				-				-				-				-				-				-				-				-
Substandard		-				1,523				-				-				-				-				-				-				1,523
Doubtful & Loss		-				-				-				-				-				-				-				-				-
Total SBA - PPP loans:	$	278,560			$	52,400			$	-			$	-			$	-			$	-			$	-			$	-			$	330,960

Commercial and industrial loans:
Risk Rating:
Pass	$	100,677			$	87,523			$	134,219			$	59,713			$	38,121			$	81,999			$	237,284			$	5,919			$	745,455
Special Mention		921				2,353				1,001				1,481				515				140				7,597				198				14,206
Substandard		2,643				7				106				2,016				1,142				612				343				3,447				10,316
Doubtful & Loss		-				-				-				-				-				-				-				-				-
Total Commercial and industrial loans:	$	104,241			$	89,883			$	135,326			$	63,210			$	39,778			$	82,751			$	245,224			$	9,564			$	769,977


	Origination Year																								Revolving loans amortized				Revolving loans converted to
September 30, 2021	2021				2020				2019				2018				2017				Prior				cost basis				term loans				Total
	(Dollars in thousands)
Dairy & livestock and agribusiness loans:
Risk Rating:
Pass	$	13			$	988			$	1,420			$	1,152			$	126			$	322			$	258,432			$	886			$	263,339
Special Mention		-				-				-				-				-				-				5,094				2,300				7,394
Substandard		-				-				-				119				-				-				-				8,732				8,851
Doubtful & Loss		-				-				-				-				-				-				-				-				-
Total Dairy & livestock and agribusiness loans:	$	13			$	988			$	1,420			$	1,271			$	126			$	322			$	263,526			$	11,918			$	279,584

Municipal lease finance receivables loans:
Risk Rating:
Pass	$	9,557			$	7,875			$	-			$	279			$	9,720			$	19,498			$	-			$	-			$	46,929
Special Mention		-				-				-				-				-				376				-				-				376
Substandard		-				-				-				-				-				-				-				-				-
Doubtful & Loss		-				-				-				-				-				-				-				-				-
Total Municipal lease finance receivables loans:	$	9,557			$	7,875			$	-			$	279			$	9,720			$	19,874			$	-			$	-			$	47,305

SFR mortgage loans:
Risk Rating:
Pass	$	27,356			$	52,771			$	44,447			$	20,072			$	17,176			$	66,847			$	152			$	-			$	228,821
Special Mention		-				-				-				-				-				-				-				-				-
Substandard		-				-				-				-				-				2,088				-				414				2,502
Doubtful & Loss		-				-				-				-				-				-				-				-				-
Total SFR mortgage loans:	$	27,356			$	52,771			$	44,447			$	20,072			$	17,176			$	68,935			$	152			$	414			$	231,323

Consumer and other loans:
Risk Rating:
Pass	$	5,196			$	2,825			$	1,539			$	558			$	454			$	1,901			$	53,550			$	2,195			$	68,218
Special Mention		909				-				-				-				-				-				591				403				1,903
Substandard		-				-				-				-				-				167				5				448				620
Doubtful & Loss		-				-				-				-				-				-				-				-				-
Total Consumer and other loans:	$	6,105			$	2,825			$	1,539			$	558			$	454			$	2,068			$	54,146			$	3,046			$	70,741

Total Loans:
Risk Rating:
Pass	$	1,370,969			$	1,247,237			$	822,680			$	671,770			$	621,292			$	2,071,359			$	756,161			$	53,792			$	7,615,260
Special Mention		13,816				7,928				10,079				23,383				48,248				52,950				19,700				8,401				184,505
Substandard		5,089				1,530				569				2,975				11,490				14,397				348				13,357				49,755
Doubtful & Loss		-				-				-				-				-				-				-				-				-
Total Loans:	$	1,389,874			$	1,256,695			$	833,328			$	698,128			$	681,030			$	2,138,706			$	776,209			$	75,550			$	7,849,520


	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 September 30, 2021
	Ending Balance June 30, 2021				Charge-offs				Recoveries				(Recapture of) Provision for Credit Losses				Ending Balance September 30, 2021
	(Dollars in thousands)
Commercial real estate	$	55,200			$	-			$	-			$	(2,888	)		$	52,312
Construction		1,825				-				11				(775	)			1,061
SBA		2,546				-				5				376				2,927
Commercial and industrial		5,667				(10	)			6				(755	)			4,908
Dairy & livestock and agribusiness		2,775				-				-				391				3,166
Municipal lease finance receivables		67				-				-				18				85
SFR mortgage		284				-				-				(94	)			190
Consumer and other loans		978				(1	)			11				(273	)			715
Total allowance for credit losses	$	69,342			$	(11	)		$	33			$	(4,000	)		$	65,364


	Three Months Ended September 30, 2020
	Ending Balance June 30, 2020				Charge-offs				Recoveries				Provision for (Recapture of) Credit Losses				Ending Balance September 30, 2020
	(Dollars in thousands)
Commercial real estate	$	74,928			$	-			$	-			$	(473	)		$	74,455
Construction		2,290				-				3				(355	)			1,938
SBA		3,651				(47	)			69				(169	)			3,504
Commercial and industrial		7,991				(161	)			2				761				8,593
Dairy & livestock and agribusiness		3,379				-				-				330				3,709
Municipal lease finance receivables		302				-				-				(153	)			149
SFR mortgage		222				-				-				15				237
Consumer and other loans		1,220				(23	)			43				44				1,284
Total allowance for credit losses	$	93,983			$	(231	)		$	117			$	-			$	93,869


	Nine Months Ended September 30, 2021
	Ending Balance December 31, 2020				Charge-offs				Recoveries				(Recapture of) Provision for Credit Losses				Ending Balance September 30, 2021
	(Dollars in thousands)
Commercial real estate	$	75,439			$	-			$	-			$	(23,127	)		$	52,312
Construction		1,934				-				55				(928	)			1,061
SBA		2,992				-				13				(78	)			2,927
Commercial and industrial		7,142				(2,985	)			10				741				4,908
Dairy & livestock and agribusiness		3,949				-				-				(783	)			3,166
Municipal lease finance receivables		74				-				-				11				85
SFR mortgage		367				-				79				(256	)			190
Consumer and other loans		1,795				(11	)			11				(1,080	)			715
Total allowance for credit losses	$	93,692			$	(2,996	)		$	168			$	(25,500	)		$	65,364


	Nine Months Ended September 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 September 30, 2020
	(Dollars in thousands)
Commercial real estate	$	48,629			$	3,547			$	-			$	-			$	22,279			$	74,455
Construction		858				655				-				9				416				1,938
SBA		1,453				1,818				(203	)			72				364				3,504
Commercial and industrial		8,880				(2,442	)			(172	)			7				2,320				8,593
Dairy & livestock and agribusiness		5,255				(186	)			-				-				(1,360	)			3,709
Municipal lease finance receivables		623				(416	)			-				-				(58	)			149
SFR mortgage		2,339				(2,043	)			-				206				(265	)			237
Consumer and other loans		623				907				(109	)			59				(196	)			1,284
Total allowance for credit losses	$	68,660			$	1,840			$	(484	)		$	353			$	23,500			$	93,869

As of September 30, 2021, the remaining outstanding balance of PPP loans was $331.0 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.


	September 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	$	-			$	199			$	3,641			$	3,840			$	2,115,928			$	2,119,768
Non-owner occupied		-				-				-				-				3,614,931				3,614,931
Construction
Speculative (1)		-				-				-				-				52,856				52,856
Non-speculative		-				-				-				-				24,542				24,542
SBA		-				-				1,218				1,218				306,315				307,533
SBA - PPP		-				-				-				-				330,960				330,960
Commercial and industrial		584				382				1,013				1,979				767,998				769,977
Dairy & livestock and agribusiness		1,000				-				118				1,118				278,466				279,584
Municipal lease finance receivables		-				-				-				-				47,305				47,305
SFR mortgage		-				-				218				218				231,105				231,323
Consumer and other loans		-				-				188				188				70,553				70,741
Total loans	$	1,584			$	581			$	6,396			$	8,561			$	7,840,959			$	7,849,520

(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 September 30, 2021 and December 31, 2020 by type of loan.


	September 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	$	3,521			$	4,073			$	-
Non-owner occupied		-				-				-
Construction
Speculative (2)		-				-				-
Non-speculative		-				-				-
SBA		804				1,513				-
SBA - PPP		-				-				-
Commercial and industrial		370				2,038				-
Dairy & livestock and agribusiness		-				118				-
Municipal lease finance receivables		-				-				-
SFR mortgage		400				399				-
Consumer and other loans		305				305				-
Total loans	$	5,400			$	8,446			$	-

(1)

As of September 30, 2021, $1.0 million of nonaccruing loans were current, $463,000 were 30-59 days past due, $581,000 were 60-89 days past due, and $6.4 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.


	September 30, 2021												Number of Loans
	Real Estate				Business Assets				Other				Dependent on Collateral
	(Dollars in thousands)
Commercial real estate	$	6,705			$	-			$	-				8
Construction		-				-				-				-
SBA		608				775				130				11
SBA - PPP		-				-				-				-
Commercial and industrial		743				6,088				132				19
Dairy & livestock and agribusiness		-				118				-				1
Municipal lease finance receivables		-				-				-				-
SFR mortgage		1,143				-				-				6
Consumer and other loans		305				-				-				3
Total collateral-dependent loans	$	9,504			$	6,981			$	262				48


	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 September 30,								Nine Months Ended September 30,
	2021				2020				2021				2020
	(Dollars in thousands)
Performing TDRs:
Beginning balance	$	8,215			$	2,771			$	2,159			$	3,112
New modifications		-				-				7,096				-
Payoffs/payments, net and other		(240	)			(554	)			(1,280	)			(895	)
TDRs returned to accrual status		-				-				-				-
TDRs placed on nonaccrual status		-				-				-				-
Ending balance	$	7,975			$	2,217			$	7,975			$	2,217
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	$	7,975			$	2,217			$	7,975			$	2,217

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 September 30, 2021

Number of Loans

Pre-Modification Outstanding Recorded Investment

Post-Modification Outstanding Recorded
Investment

Outstanding Recorded Investment at September 30, 2021

Financial Effect Resulting From Modifications (2)

(Dollars in thousands)

Commercial real estate:

Interest rate reduction

-

$

-

$

-

$

-

$

-

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

-

$

-

$

-

$

-

$

-


	For the Nine Months Ended September 30, 2021
	Number of Loans				Pre-Modification Outstanding Recorded Investment				Post-Modification Outstanding Recorded Investment				Outstanding Recorded Investment at September 30, 2021				Financial Effect Resulting From Modifications (2)
	(Dollars in thousands)
Commercial real estate:
Interest rate reduction		1			$	2,453			$	2,453			$	2,446			$	-
Change in amortization period or maturity		-				-				-				-				-
Commercial and industrial:
Interest rate reduction		-				-				-				-				-
Change in amortization period or maturity		2				4,643				4,643				4,293				-
SFR mortgage:
Interest rate reduction		-				-				-				-				-
Change in amortization period or maturity		-				-				-				-				-
Total loans		3			$	7,096			$	7,096			$	6,739			$	-

(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.