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

12 Months Ended

Dec. 31, 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.


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

Commercial real estate	$	5,789,730			$	5,501,509
Construction		62,264				85,145
SBA		288,600				303,896
SBA - Paycheck Protection Program (PPP)		186,585				882,986
Commercial and industrial		813,063				812,062
Dairy & livestock and agribusiness		386,219				361,146
Municipal lease finance receivables		45,933				45,547
SFR mortgage		240,654				270,511
Consumer and other loans		74,665				86,006
Total loans, at amortized cost		7,887,713				8,348,808
Less: Allowance for credit losses		(65,019	)			(93,692	)
Total loans and lease finance receivables, net	$	7,822,694			$	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
December 31, 2021	2021				2020				2019				2018				2017				Prior				cost basis				term loans				Total
	(Dollars in thousands)
Commercial real estate loans:
Risk Rating:
Pass	$	1,137,714			$	963,697			$	591,202			$	534,468			$	484,721			$	1,704,267			$	156,841			$	33,564			$	5,606,474
Special Mention		3,133				20,640				14,477				16,097				43,262				44,045				6,970				6,800				155,424
Substandard		-				-				2,859				6,933				4,646				7,329				5,951				114				27,832
Doubtful & Loss		-				-				-				-				-				-				-				-				-
Total Commercial real estate loans:	$	1,140,847			$	984,337			$	608,538			$	557,498			$	532,629			$	1,755,641			$	169,762			$	40,478			$	5,789,730

Construction loans:
Risk Rating:
Pass	$	10,511			$	15,896			$	7,236			$	-			$	-			$	-			$	25,262			$	-			$	58,905
Special Mention		-				-				-				3,359				-				-				-				-				3,359
Substandard		-				-				-				-				-				-				-				-				-
Doubtful & Loss		-				-				-				-				-				-				-				-				-
Total Construction loans:	$	10,511			$	15,896			$	7,236			$	3,359			$	-			$	-			$	25,262			$	-			$	62,264

SBA loans:
Risk Rating:
Pass	$	70,929			$	36,468			$	11,129			$	36,068			$	38,504			$	78,527			$	-			$	-			$	271,625
Special Mention		-				-				-				-				4,056				2,700				-				-				6,756
Substandard		-				-				-				785				4,092				5,342				-				-				10,219
Doubtful & Loss		-				-				-				-				-				-				-				-				-
Total SBA loans:	$	70,929			$	36,468			$	11,129			$	36,853			$	46,652			$	86,569			$	-			$	-			$	288,600

SBA - PPP loans:
Risk Rating:
Pass	$	183,614			$	2,969			$	-			$	-			$	-			$	-			$	-			$	-			$	186,583
Special Mention		-				-				-				-				-				-				-				-				-
Substandard		-				2				-				-				-				-				-				-				2
Doubtful & Loss		-				-				-				-				-				-				-				-				-
Total SBA - PPP loans:	$	183,614			$	2,971			$	-			$	-			$	-			$	-			$	-			$	-			$	186,585

Commercial and industrial loans:
Risk Rating:
Pass	$	145,494			$	81,944			$	126,647			$	54,690			$	32,455			$	73,600			$	267,659			$	6,992			$	789,481
Special Mention		1,556				1,929				127				1,396				394				26				9,369				177				14,974
Substandard		244				6				602				1,712				505				475				1,991				3,073				8,608
Doubtful & Loss		-				-				-				-				-				-				-				-				-
Total Commercial and industrial loans:	$	147,294			$	83,879			$	127,376			$	57,798			$	33,354			$	74,101			$	279,019			$	10,242			$	813,063


	Origination Year																								Revolving loans amortized				Revolving loans converted to
December 31, 2021	2021				2020				2019				2018				2017				Prior				cost basis				term loans				Total
	(Dollars in thousands)
Dairy & livestock and agribusiness loans:
Risk Rating:
Pass	$	1,756			$	942			$	1,285			$	1,035			$	95			$	295			$	364,312			$	454			$	370,174
Special Mention		1,052				-				-				-				-				-				6,979				1,301				9,332
Substandard		-				-				-				37				-				-				-				6,676				6,713
Doubtful & Loss		-				-				-				-				-				-				-				-				-
Total Dairy & livestock and agribusiness loans:	$	2,808			$	942			$	1,285			$	1,072			$	95			$	295			$	371,291			$	8,431			$	386,219

Municipal lease finance receivables loans:
Risk Rating:
Pass	$	9,310			$	7,666			$	-			$	279			$	9,528			$	18,811			$	-			$	-			$	45,594
Special Mention		-				-				-				-				-				339				-				-				339
Substandard		-				-				-				-				-				-				-				-				-
Doubtful & Loss		-				-				-				-				-				-				-				-				-
Total Municipal lease finance receivables loans:	$	9,310			$	7,666			$	-			$	279			$	9,528			$	19,150			$	-			$	-			$	45,933

SFR mortgage loans:
Risk Rating:
Pass	$	48,813			$	49,261			$	41,776			$	19,877			$	16,046			$	61,965			$	451			$	-			$	238,189
Special Mention		8				-				-				-				-				-				-				-				8
Substandard		-				-				-				-				-				2,052				-				405				2,457
Doubtful & Loss		-				-				-				-				-				-				-				-				-
Total SFR mortgage loans:	$	48,821			$	49,261			$	41,776			$	19,877			$	16,046			$	64,017			$	451			$	405			$	240,654

Consumer and other loans:
Risk Rating:
Pass	$	5,145			$	1,947			$	1,415			$	469			$	386			$	1,611			$	58,060			$	3,378			$	72,411
Special Mention		839				-				-				-				-				150				591				403				1,983
Substandard		-				-				-				-				-				15				5				251				271
Doubtful & Loss		-				-				-				-				-				-				-				-				-
Total Consumer and other loans:	$	5,984			$	1,947			$	1,415			$	469			$	386			$	1,776			$	58,656			$	4,032			$	74,665

Total Loans:
Risk Rating:
Pass	$	1,613,286			$	1,160,790			$	780,690			$	646,886			$	581,735			$	1,939,076			$	872,585			$	44,388			$	7,639,436
Special Mention		6,588				22,569				14,604				20,852				47,712				47,260				23,909				8,681				192,175
Substandard		244				8				3,461				9,467				9,243				15,213				7,947				10,519				56,102
Doubtful & Loss		-				-				-				-				-				-				-				-				-
Total Loans:	$	1,620,118			$	1,183,367			$	798,755			$	677,205			$	638,690			$	2,001,549			$	904,441			$	63,588			$	7,887,713


	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.


		Year Ended December 31, 2021
		Ending Balance December 31, 2020				Charge-offs				Recoveries				(Recapture of) Provision for Credit Losses				Ending Balance December 31, 2021
		(Dollars in thousands)
Commercial real estate		$	75,439			$	—			$	—			$	(24,489	)		$	50,950
Construction			1,934				—				58				(1,227	)			765
SBA			2,992				(223	)			23				(124	)			2,668
SBA - PPP			—				—				—				—				—
Commercial and industrial			7,142				(3,019	)			12				2,534				6,669
Dairy & livestock and agribusiness			3,949				(118	)			—				(765	)			3,066
Municipal lease finance receivables			74				—				—				26				100
SFR mortgage			367				—				79				(258	)			188
Consumer and other loans			1,795				(11	)			26				(1,197	)			613
Total allowance for credit losses		$	93,692			$	(3,371	)		$	198			$	(25,500	)		$	65,019


		Year Ended December 31, 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 December 31, 2020
		(Dollars in thousands)
Commercial real estate		$	48,629			$	3,547			$	—			$	—			$	23,263			$	75,439
Construction			858				655				—				11				410				1,934
SBA			1,453				1,818				(362	)			72				11				2,992
SBA - PPP			—				—				—				—				—				—
Commercial and industrial			8,880				(2,442	)			(195	)			10				889				7,142
Dairy & livestock and agribusiness			5,255				(186	)			—				—				(1,120	)			3,949
Municipal lease finance receivables			623				(416	)			—				—				(133	)			74
SFR mortgage			2,339				(2,043	)			—				206				(135	)			367
Consumer and other loans			623				907				(109	)			59				315				1,795
Total allowance for credit losses		$	68,660			$	1,840			$	(666	)		$	358			$	23,500			$	93,692


		Year Ended December 31, 2019
		Ending Balance December 31, 2018				Charge-offs				Recoveries				Provision for (Recapture of) Loan Losses				Ending Balance December 31, 2019
		(Dollars in thousands)
Commercial real estate		$	45,097			$	—			$	—			$	3,532			$	48,629
Construction			981				—				12				(135	)			858
SBA			1,078				(321	)			9				687				1,453
Commercial and industrial			7,528				(48	)			255				1,145				8,880
Dairy & livestock and agribusiness			5,225				(78	)			19				89				5,255
Municipal lease finance receivables			775				—				—				(152	)			623
SFR mortgage			2,197				—				196				(54	)			2,339
Consumer and other loans			732				(7	)			10				(112	)			623
Total allowance for loan losses		$	63,613			$	(454	)		$	501			$	5,000			$	68,660

Schedule of Recorded Investment in, and Aging of, Past Due and Nonaccrual Loans, Including 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 date presented.


	December 31, 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	$	438			$	-			$	3,383			$	3,821			$	2,127,979			$	2,131,800
Non-owner occupied		-				-				-				-				3,657,930				3,657,930
Construction
Speculative (1)		-				-				-				-				44,859				44,859
Non-speculative		-				-				-				-				17,405				17,405
SBA		417				1,145				339				1,901				286,699				288,600
SBA - PPP		-				-				-				-				186,585				186,585
Commercial and industrial		-				16				1,356				1,372				811,691				813,063
Dairy & livestock and agribusiness		-				-				-				-				386,219				386,219
Municipal lease finance receivables		-				-				-				-				45,933				45,933
SFR mortgage		1,040				-				-				1,040				239,614				240,654
Consumer and other loans		-				-				42				42				74,623				74,665
Total loans	$	1,895			$	1,161			$	5,120			$	8,176			$	7,879,537			$	7,887,713

(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.

Following the adoption of CECL on January 1, 2020, the definitions of impairment and related impaired loan disclosures were removed. Under CECL, amortized cost of our finance receivables and loans that are on nonaccrual status, including loans with no allowance, and are reflected by loan type as of the dates presented.


	December 31, 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	$	3,607			$	3,607			$	-
Non-owner occupied		-				-				-
Construction
Speculative (2)		-				-				-
Non-speculative		-				-				-
SBA		521				1,034				-
SBA - PPP		-				-				-
Commercial and industrial		1,326				1,714				-
Dairy & livestock and agribusiness		-				-				-
Municipal lease finance receivables		-				-				-
SFR mortgage		380				380				-
Consumer and other loans		158				158				-
Total loans	$	5,992			$	6,893			$	-

(1)

As of December 31, 2021, $1.2 million of nonaccruing loans were current, $332,000 were 30-59 days past due, $267,000 were 60-89 days past due, and $5.1 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.

Schedule of Held-for-Investment Loans, Individually Evaluated for Impairment by Class of Loans


		Year Ended December 31, 2019
		Recorded Investment				Unpaid Principal Balance				Related Allowance				Average Recorded Investment				Interest Income Recognized
										(Dollars in thousands)
With no related allowance recorded:
Commercial real estate
Owner occupied		$	479			$	613			$	—			$	505			$	—
Non-owner occupied			642				643				—				681				26
Construction
Speculative			—				—				—				—				—
Non-speculative			—				—				—				—				—
SBA			2,243				2,734				—				2,389				41
Commercial and industrial			1,091				1,261				—				1,369				4
Dairy & livestock and agribusiness			—				—				—				—				—
Municipal lease finance receivables			—				—				—				—				—
SFR mortgage			2,979				3,310				—				3,043				86
Consumer and other loans			377				514				—				396				—
Total			7,811				9,075				—				8,383				157
With a related allowance recorded:
Commercial real estate
Owner occupied			—				—				—				—				—
Non-owner occupied			—				—				—				—				—
Construction
Speculative			—				—				—				—				—
Non-speculative			—				—				—				—				—
SBA			325				324				257				327				—
Commercial and industrial			253				347				251				699				—
Dairy & livestock and agribusiness			—				—				—				—				—
Municipal lease finance receivables			—				—				—				—				—
SFR mortgage			—				—				—				—				—
Consumer and other loans			—				—				—				—				—
Total			578				671				508				1,026				—
Total impaired loans		$	8,389			$	9,746			$	508			$	9,409			$	157

Excludes PCI loans.

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

A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. The following table presents the recorded investment in collateral-dependent loans by type of loans as of the date presented.


	December 31, 2021												Number of Loans
	Real Estate				Business Assets				Other				Dependent on Collateral
	(Dollars in thousands)
Commercial real estate	$	6,001			$	-			$	-				6
Construction		-				-				-				-
SBA		405				517				112				10
SBA - PPP		-				-				-				-
Commercial and industrial		688				5,133				96				19
Dairy & livestock and agribusiness		-				-				-				-
Municipal lease finance receivables		-				-				-				-
SFR mortgage		380				-				-				2
Consumer and other loans		158				-				-				2
Total collateral-dependent loans	$	7,632			$	5,650			$	208				39


	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.


		Year Ended December 31,
		2021				2020
		(Dollars in thousands)
Performing TDRs:
Beginning balance		$	2,159			$	3,112
New modifications			7,340				—
Payoffs/payments, net and other			(4,206	)			(953	)
TDRs returned to accrual status			—				—
TDRs placed on nonaccrual status			—				—
Ending balance		$	5,293			$	2,159
Nonperforming TDRs:
Beginning balance		$	—			$	244
New modifications			—				—
Charge-offs			—				—
Transfer to OREO			—				—
Payoffs/payments, net and other			—				(244	)
TDRs returned to accrual status			—				—
TDRs placed on nonaccrual status			—				—
Ending balance		$	—			$	—
Total TDRs		$	5,293			$	2,159

Summary of Loans Modified as Troubled Debt Restructurings

The following table summarize loans modified as TDRs for the period presented. There were no loans that were modified as TDRs for the years ended December 31, 2020 and 2019.

Modifications (1)


	For the Year Ended December 31, 2021
	Number of Loans				Pre-Modification Outstanding Recorded Investment				Post-Modification Outstanding Recorded Investment				Outstanding Recorded Investment at December 31, 2021				Financial Effect Resulting From Modifications (2)
	(Dollars in thousands)
Commercial real estate:
Interest rate reduction		1			$	2,453			$	2,453			$	2,394			$	-
Change in amortization period or maturity		-				-				-				-				-
Commercial and industrial:
Interest rate reduction		-				-				-				-				-
Change in amortization period or maturity		3				4,887				4,887				1,859				-
SFR mortgage:
Interest rate reduction		-				-				-				-				-
Change in amortization period or maturity		-				-				-				-				-
Total loans		4			$	7,340			$	7,340			$	4,253			$	-

(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 current allowance for credit losses at modification date.