XML 33 R23.htm IDEA: XBRL DOCUMENT v3.22.2.2
Loans and Lease Finance Receivables and Allowance for Credit Losses (Tables)
 9 Months Ended
Sep. 30, 2022
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, 2022

 

 

December 31, 2021

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

Commercial real estate

$

6,685,245

 

 

$

5,789,730

 

Construction

 

76,495

 

 

 

62,264

 

SBA

 

296,664

 

 

 

288,600

 

SBA - Paycheck Protection Program (PPP)

 

17,348

 

 

 

186,585

 

Commercial and industrial

 

952,231

 

 

 

813,063

 

Dairy & livestock and agribusiness

 

323,105

 

 

 

386,219

 

Municipal lease finance receivables

 

76,656

 

 

 

45,933

 

SFR mortgage

 

263,646

 

 

 

240,654

 

Consumer and other loans

 

82,746

 

 

 

74,665

 

Total loans, at amortized cost

 

8,774,136

 

 

 

7,887,713

 

Less: Allowance for credit losses

 

(82,601

)

 

 

(65,019

)

 Total loans and lease finance receivables, net

$

8,691,535

 

 

$

7,822,694

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

 

 

Origination Year

 

 

Revolving loans amortized

 

 

Revolving loans converted to

 

 

 

 

September 30, 2022

2022

 

 

2021

 

 

2020

 

 

2019

 

 

2018

 

 

Prior

 

 

cost basis

 

 

term loans

 

 

Total

 

 

(Dollars in thousands)

 

Commercial real estate
   loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

1,036,048

 

 

$

1,211,127

 

 

$

972,387

 

 

$

581,832

 

 

$

522,728

 

 

$

1,963,428

 

 

$

177,910

 

 

$

39,961

 

 

$

6,505,421

 

Special Mention

 

505

 

 

 

11,066

 

 

 

10,234

 

 

 

19,905

 

 

 

24,272

 

 

 

77,113

 

 

 

1,318

 

 

 

-

 

 

 

144,413

 

Substandard

 

-

 

 

 

3,521

 

 

 

15,811

 

 

 

429

 

 

 

96

 

 

 

15,554

 

 

 

-

 

 

 

-

 

 

 

35,411

 

Doubtful & Loss

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total Commercial real
   estate loans:

$

1,036,553

 

 

$

1,225,714

 

 

$

998,432

 

 

$

602,166

 

 

$

547,096

 

 

$

2,056,095

 

 

$

179,228

 

 

$

39,961

 

 

$

6,685,245

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

17,931

 

 

$

21,612

 

 

$

14,409

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

17,749

 

 

$

-

 

 

$

71,701

 

Special Mention

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

4,794

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

4,794

 

Substandard

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Doubtful & Loss

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total Construction
   loans:

$

17,931

 

 

$

21,612

 

 

$

14,409

 

 

$

-

 

 

$

4,794

 

 

$

-

 

 

$

17,749

 

 

$

-

 

 

$

76,495

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBA loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

52,986

 

 

$

56,165

 

 

$

35,527

 

 

$

11,580

 

 

$

29,886

 

 

$

100,265

 

 

$

54

 

 

$

-

 

 

$

286,463

 

Special Mention

 

-

 

 

 

-

 

 

 

96

 

 

 

1,325

 

 

 

1,341

 

 

 

2,354

 

 

 

-

 

 

 

-

 

 

 

5,116

 

Substandard

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

571

 

 

 

4,514

 

 

 

-

 

 

 

-

 

 

 

5,085

 

Doubtful & Loss

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total SBA loans:

$

52,986

 

 

$

56,165

 

 

$

35,623

 

 

$

12,905

 

 

$

31,798

 

 

$

107,133

 

 

$

54

 

 

$

-

 

 

$

296,664

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBA - PPP loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

-

 

 

$

13,284

 

 

$

4,064

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

17,348

 

Special Mention

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Substandard

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Doubtful & Loss

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total SBA - PPP loans:

$

-

 

 

$

13,284

 

 

$

4,064

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

17,348

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and
   industrial loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

117,792

 

 

$

147,378

 

 

$

87,201

 

 

$

103,322

 

 

$

47,588

 

 

$

94,924

 

 

$

315,146

 

 

$

8,217

 

 

$

921,568

 

Special Mention

 

3,475

 

 

 

745

 

 

 

544

 

 

 

1,985

 

 

 

486

 

 

 

20

 

 

 

12,548

 

 

 

1,855

 

 

 

21,658

 

Substandard

 

-

 

 

 

-

 

 

 

774

 

 

 

553

 

 

 

4,109

 

 

 

303

 

 

 

1,933

 

 

 

1,333

 

 

 

9,005

 

Doubtful & Loss

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total Commercial and
   industrial loans:

$

121,267

 

 

$

148,123

 

 

$

88,519

 

 

$

105,860

 

 

$

52,183

 

 

$

95,247

 

 

$

329,627

 

 

$

11,405

 

 

$

952,231

 

 

 

 

Origination Year

 

 

Revolving loans amortized

 

 

Revolving loans converted to

 

 

 

 

September 30, 2022

2022

 

 

2021

 

 

2020

 

 

2019

 

 

2018

 

 

Prior

 

 

cost basis

 

 

term loans

 

 

Total

 

 

(Dollars in thousands)

 

Dairy & livestock and
   agribusiness loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

1,869

 

 

$

6,902

 

 

$

1,713

 

 

$

926

 

 

$

379

 

 

$

1,254

 

 

$

295,737

 

 

$

-

 

 

$

308,780

 

Special Mention

 

449

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

61

 

 

 

-

 

 

 

1,297

 

 

 

952

 

 

 

2,759

 

Substandard

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

129

 

 

 

212

 

 

 

5,822

 

 

 

5,403

 

 

 

11,566

 

Doubtful & Loss

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total Dairy & livestock
   and agribusiness
   loans:

$

2,318

 

 

$

6,902

 

 

$

1,713

 

 

$

926

 

 

$

569

 

 

$

1,466

 

 

$

302,856

 

 

$

6,355

 

 

$

323,105

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipal lease finance
   receivables loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

143

 

 

$

27,134

 

 

$

7,029

 

 

$

4,370

 

 

$

4,944

 

 

$

32,549

 

 

$

-

 

 

$

-

 

 

$

76,169

 

Special Mention

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

301

 

 

 

-

 

 

 

-

 

 

 

301

 

Substandard

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

186

 

 

 

-

 

 

 

-

 

 

 

186

 

Doubtful & Loss

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total Municipal lease
   finance receivables
   loans:

$

143

 

 

$

27,134

 

 

$

7,029

 

 

$

4,370

 

 

$

4,944

 

 

$

33,036

 

 

$

-

 

 

$

-

 

 

$

76,656

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SFR mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

55,028

 

 

$

47,136

 

 

$

46,057

 

 

$

35,651

 

 

$

16,842

 

 

$

60,579

 

 

$

-

 

 

$

-

 

 

$

261,293

 

Special Mention

 

-

 

 

 

-

 

 

 

948

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

948

 

Substandard

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,015

 

 

 

-

 

 

 

390

 

 

 

1,405

 

Doubtful & Loss

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total SFR mortgage
   loans:

$

55,028

 

 

$

47,136

 

 

$

47,005

 

 

$

35,651

 

 

$

16,842

 

 

$

61,594

 

 

$

-

 

 

$

390

 

 

$

263,646

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer and other
   loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

7,944

 

 

$

3,946

 

 

$

1,437

 

 

$

1,079

 

 

$

157

 

 

$

1,340

 

 

$

61,699

 

 

$

2,929

 

 

$

80,531

 

Special Mention

 

-

 

 

 

631

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

591

 

 

 

-

 

 

 

1,222

 

Substandard

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

14

 

 

 

5

 

 

 

974

 

 

 

993

 

Doubtful & Loss

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total Consumer and
   other loans:

$

7,944

 

 

$

4,577

 

 

$

1,437

 

 

$

1,079

 

 

$

157

 

 

$

1,354

 

 

$

62,295

 

 

$

3,903

 

 

$

82,746

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

1,289,741

 

 

$

1,534,684

 

 

$

1,169,824

 

 

$

738,760

 

 

$

622,524

 

 

$

2,254,339

 

 

$

868,295

 

 

$

51,107

 

 

$

8,529,274

 

Special Mention

 

4,429

 

 

 

12,442

 

 

 

11,822

 

 

 

23,215

 

 

 

30,954

 

 

 

79,788

 

 

 

15,754

 

 

 

2,807

 

 

 

181,211

 

Substandard

 

-

 

 

 

3,521

 

 

 

16,585

 

 

 

982

 

 

 

4,905

 

 

 

21,798

 

 

 

7,760

 

 

 

8,100

 

 

 

63,651

 

Doubtful & Loss

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total Loans:

$

1,294,170

 

 

$

1,550,647

 

 

$

1,198,231

 

 

$

762,957

 

 

$

658,383

 

 

$

2,355,925

 

 

$

891,809

 

 

$

62,014

 

 

$

8,774,136

 

 

 

 

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

 
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, 2022

 

 

Ending Balance June 30, 2022

 

 

Charge-offs

 

 

Recoveries

 

 

Provision for (Recapture of)
 Credit Losses

 

 

Ending Balance September 30, 2022

 

 

(Dollars in thousands)

 

Commercial real estate

$

61,513

 

 

$

-

 

 

$

-

 

 

$

3,392

 

 

$

64,905

 

Construction

 

1,062

 

 

 

-

 

 

 

3

 

 

 

657

 

 

 

1,722

 

SBA

 

2,613

 

 

 

-

 

 

 

41

 

 

 

151

 

 

 

2,805

 

Commercial and industrial

 

7,194

 

 

 

(45

)

 

 

-

 

 

 

(16

)

 

 

7,133

 

Dairy & livestock and agribusiness

 

6,832

 

 

 

-

 

 

 

381

 

 

 

(2,220

)

 

 

4,993

 

Municipal lease finance receivables

 

183

 

 

 

-

 

 

 

-

 

 

 

56

 

 

 

239

 

SFR mortgage

 

254

 

 

 

-

 

 

 

-

 

 

 

50

 

 

 

304

 

Consumer and other loans

 

571

 

 

 

(1

)

 

 

-

 

 

 

(70

)

 

 

500

 

Total allowance for credit losses

$

80,222

 

 

$

(46

)

 

$

425

 

 

$

2,000

 

 

$

82,601

 

 

 

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

 

 

 

 

Nine months ended September 30, 2022

 

 

Ending Balance December 31, 2021

 

 

Charge-offs

 

 

Recoveries

 

 

Initial ACL for PCD Loans at Acquisition

 

 

Provision Recorded at Acquisition

 

 

Provision for (Recapture of) Credit Losses

 

 

Ending Balance September 30, 2022

 

 

(Dollars in thousands)

 

Commercial real estate

$

50,950

 

 

$

-

 

 

$

-

 

 

$

5,086

 

 

$

4,127

 

 

$

4,742

 

 

$

64,905

 

Construction

 

765

 

 

 

-

 

 

 

9

 

 

 

122

 

 

 

58

 

 

 

768

 

 

 

1,722

 

SBA

 

2,668

 

 

 

-

 

 

 

99

 

 

 

62

 

 

 

64

 

 

 

(88

)

 

 

2,805

 

Commercial and industrial

 

6,669

 

 

 

(66

)

 

 

456

 

 

 

500

 

 

 

508

 

 

 

(934

)

 

 

7,133

 

Dairy & livestock and agribusiness

 

3,066

 

 

 

-

 

 

 

383

 

 

 

2,832

 

 

 

149

 

 

 

(1,437

)

 

 

4,993

 

Municipal lease finance receivables

 

100

 

 

 

-

 

 

 

-

 

 

 

3

 

 

 

26

 

 

 

110

 

 

 

239

 

SFR mortgage

 

188

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

116

 

 

 

304

 

Consumer and other loans

 

613

 

 

 

(4

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(109

)

 

 

500

 

Total allowance for credit losses

$

65,019

 

 

$

(70

)

 

$

947

 

 

$

8,605

 

 

$

4,932

 

 

$

3,168

 

 

$

82,601

 

 

 

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

 

 

 

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 credit losses, 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 credit losses, 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, 2021, for additional discussion concerning the Bank’s policy for past due and nonperforming 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, 2022

 

 

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

$

-

 

 

$

-

 

 

$

6,686

 

 

$

6,686

 

 

$

2,431,460

 

 

$

2,438,146

 

Non-owner occupied

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

4,247,099

 

 

 

4,247,099

 

Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Speculative (1)

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

56,183

 

 

 

56,183

 

Non-speculative

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

20,312

 

 

 

20,312

 

SBA

 

-

 

 

 

-

 

 

 

880

 

 

 

880

 

 

 

295,784

 

 

 

296,664

 

SBA - PPP

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

17,348

 

 

 

17,348

 

Commercial and industrial

 

80

 

 

 

142

 

 

 

1,086

 

 

 

1,308

 

 

 

950,923

 

 

 

952,231

 

Dairy & livestock and agribusiness

 

-

 

 

 

-

 

 

 

911

 

 

 

911

 

 

 

322,194

 

 

 

323,105

 

Municipal lease finance receivables

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

76,656

 

 

 

76,656

 

SFR mortgage

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

263,646

 

 

 

263,646

 

Consumer and other loans

 

-

 

 

 

-

 

 

 

32

 

 

 

32

 

 

 

82,714

 

 

 

82,746

 

Total gross loans

$

80

 

 

$

142

 

 

$

9,595

 

 

$

9,817

 

 

$

8,764,319

 

 

$

8,774,136

 

 

(1)
Speculative construction loans are generally for properties where there is no identified buyer or renter.

 

 

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 gross 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.

 

Amortized cost of our finance receivables and loans that are on nonaccrual status, including loans with no allowance are presented as of September 30, 2022 and December 31, 2021 by type of loan.

 

 

September 30, 2022

 

 

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

$

6,686

 

 

$

6,686

 

 

$

-

 

Non-owner occupied

 

19

 

 

 

19

 

 

 

-

 

Construction

 

 

 

 

 

 

 

 

Speculative (2)

 

-

 

 

 

-

 

 

 

-

 

Non-speculative

 

-

 

 

 

-

 

 

 

-

 

SBA

 

415

 

 

 

1,065

 

 

 

-

 

SBA - PPP

 

-

 

 

 

-

 

 

 

-

 

Commercial and industrial

 

940

 

 

 

1,308

 

 

 

-

 

Dairy & livestock and agribusiness

 

812

 

 

 

1,007

 

 

 

-

 

Municipal lease finance receivables

 

-

 

 

 

-

 

 

 

-

 

SFR mortgage

 

-

 

 

 

-

 

 

 

-

 

Consumer and other loans

 

32

 

 

 

32

 

 

 

-

 

Total gross loans

$

8,904

 

 

$

10,117

 

 

$

-

 

 

(1)
As of September 30, 2022, $300,000 of nonaccruing loans were current, $80,000 were 30-59 days past due, $142,000 were 60-89 days past due, and $9.6 million were 90+ days past due.
(2)
Speculative construction loans are generally for properties where there is no identified buyer or renter.

 

 

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 gross 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.

 

 

Collateral Dependent Loans

 

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 dates presented.

 

 

September 30, 2022

 

 

Number of Loans

 

 

Real Estate

 

 

Business Assets

 

 

Other

 

 

Dependent on
Collateral

 

 

(Dollars in thousands)

 

Commercial real estate

$

6,705

 

 

$

-

 

 

$

-

 

 

 

7

 

Construction

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

SBA

 

234

 

 

 

832

 

 

 

-

 

 

 

9

 

SBA - PPP

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Commercial and industrial

 

92

 

 

 

2,764

 

 

 

79

 

 

 

12

 

Dairy & livestock and agribusiness

 

699

 

 

 

17

 

 

 

291

 

 

 

4

 

Municipal lease finance receivables

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

SFR mortgage

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Consumer and other loans

 

32

 

 

 

-

 

 

 

-

 

 

 

1

 

Total collateral-dependent loans

$

7,762

 

 

$

3,613

 

 

$

370

 

 

 

33

 

 

 

 

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

 

 

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 in the same manner as it evaluates credit risk associated with the loan and lease portfolio. The Bank's ACL methodology produced an allowance of $8.0 million for the off-balance sheet credit exposures as of September 30, 2022. There was no provision or recapture of provision for unfunded loan commitments for the nine months ended September 30, 2022, compared to a $1.0 million recapture of provision for unfunded loan commitments for the nine months ended September 30, 2021. As of September 30, 2022 and December 31, 2021, the balance in this reserve was $8.0 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, 2021 for a more detailed discussion regarding TDRs.

 

As of September 30, 2022, there were $5.8 million of loans classified as a TDR, all of which 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 September 30, 2022, performing TDRs were comprised of four commercial and industrial loans of $4.8 million and five SFR mortgage loans totaling $1.0 million.

 

The majority of TDRs have no specific allowance allocated as any impairment amount is normally charged off at the time the loan is considered uncollectible. We have no allocated allowance to TDRs as of September 30, 2022 and December 31, 2021.

 

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,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

(Dollars in thousands)

 

Performing TDRs:

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

$

5,198

 

 

$

8,215

 

 

$

5,293

 

 

$

2,159

 

New modifications

 

3,204

 

 

 

-

 

 

 

3,204

 

 

 

7,096

 

Payoffs/payments, net and other

 

(2,574

)

 

 

(240

)

 

 

(2,669

)

 

 

(1,280

)

TDRs returned to accrual status

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

TDRs placed on nonaccrual status

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Ending balance

$

5,828

 

 

$

7,975

 

 

$

5,828

 

 

$

7,975

 

Nonperforming TDRs:

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

New modifications

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Charge-offs

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Payoffs/payments, net and other

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

TDRs returned to accrual status

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

TDRs placed on nonaccrual status

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Ending balance

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 Total TDRs

$

5,828

 

 

$

7,975

 

 

$

5,828

 

 

$

7,975

 

 

 

 

 

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

 

Modifications (1)

 

 

For the three months ended September 30, 2022

 

 

Number of Loans

 

 

Pre-Modification Outstanding Recorded Investment

 

 

Post-Modification Outstanding Recorded
Investment

 

 

Outstanding Recorded Investment at September 30, 2022

 

 

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

 

2

 

 

 

3,204

 

 

 

3,204

 

 

 

3,204

 

 

 

-

 

SFR mortgage:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate reduction

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Change in amortization period
   or maturity

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total loans

 

2

 

 

$

3,204

 

 

$

3,204

 

 

$

3,204

 

 

$

-

 

 

 

 

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, 2022

 

 

Number of Loans

 

 

Pre-Modification Outstanding Recorded Investment

 

 

Post-Modification Outstanding Recorded
Investment

 

 

Outstanding Recorded Investment at September 30, 2022

 

 

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

 

2

 

 

 

3,204

 

 

 

3,204

 

 

 

3,204

 

 

 

-

 

SFR mortgage:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate reduction

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Change in amortization period
   or maturity

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total loans

 

2

 

 

$

3,204

 

 

$

3,204

 

 

$

3,204

 

 

$

-

 

 

 

 

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.
(2)
Financial effects resulting from modifications represent charge-offs and current allowance for credit losses at modification date.

 

As of September 30, 2022 and 2021, there were no loans that were modified as a TDR within the previous 12 months that subsequently defaulted during the nine months ended September 30, 2022 and 2021, respectively.
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, 2022

 

 

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

$

-

 

 

$

-

 

 

$

6,686

 

 

$

6,686

 

 

$

2,431,460

 

 

$

2,438,146

 

Non-owner occupied

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

4,247,099

 

 

 

4,247,099

 

Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Speculative (1)

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

56,183

 

 

 

56,183

 

Non-speculative

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

20,312

 

 

 

20,312

 

SBA

 

-

 

 

 

-

 

 

 

880

 

 

 

880

 

 

 

295,784

 

 

 

296,664

 

SBA - PPP

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

17,348

 

 

 

17,348

 

Commercial and industrial

 

80

 

 

 

142

 

 

 

1,086

 

 

 

1,308

 

 

 

950,923

 

 

 

952,231

 

Dairy & livestock and agribusiness

 

-

 

 

 

-

 

 

 

911

 

 

 

911

 

 

 

322,194

 

 

 

323,105

 

Municipal lease finance receivables

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

76,656

 

 

 

76,656

 

SFR mortgage

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

263,646

 

 

 

263,646

 

Consumer and other loans

 

-

 

 

 

-

 

 

 

32

 

 

 

32

 

 

 

82,714

 

 

 

82,746

 

Total gross loans

$

80

 

 

$

142

 

 

$

9,595

 

 

$

9,817

 

 

$

8,764,319

 

 

$

8,774,136

 

 

(1)
Speculative construction loans are generally for properties where there is no identified buyer or renter.

 

 

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 gross 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.

 

Amortized cost of our finance receivables and loans that are on nonaccrual status, including loans with no allowance are presented as of September 30, 2022 and December 31, 2021 by type of loan.

 

 

September 30, 2022

 

 

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

$

6,686

 

 

$

6,686

 

 

$

-

 

Non-owner occupied

 

19

 

 

 

19

 

 

 

-

 

Construction

 

 

 

 

 

 

 

 

Speculative (2)

 

-

 

 

 

-

 

 

 

-

 

Non-speculative

 

-

 

 

 

-

 

 

 

-

 

SBA

 

415

 

 

 

1,065

 

 

 

-

 

SBA - PPP

 

-

 

 

 

-

 

 

 

-

 

Commercial and industrial

 

940

 

 

 

1,308

 

 

 

-

 

Dairy & livestock and agribusiness

 

812

 

 

 

1,007

 

 

 

-

 

Municipal lease finance receivables

 

-

 

 

 

-

 

 

 

-

 

SFR mortgage

 

-

 

 

 

-

 

 

 

-

 

Consumer and other loans

 

32

 

 

 

32

 

 

 

-

 

Total gross loans

$

8,904

 

 

$

10,117

 

 

$

-

 

 

(1)
As of September 30, 2022, $300,000 of nonaccruing loans were current, $80,000 were 30-59 days past due, $142,000 were 60-89 days past due, and $9.6 million were 90+ days past due.
(2)
Speculative construction loans are generally for properties where there is no identified buyer or renter.

 

 

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 gross 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.
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, 2022

 

 

Number of Loans

 

 

Real Estate

 

 

Business Assets

 

 

Other

 

 

Dependent on
Collateral

 

 

(Dollars in thousands)

 

Commercial real estate

$

6,705

 

 

$

-

 

 

$

-

 

 

 

7

 

Construction

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

SBA

 

234

 

 

 

832

 

 

 

-

 

 

 

9

 

SBA - PPP

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Commercial and industrial

 

92

 

 

 

2,764

 

 

 

79

 

 

 

12

 

Dairy & livestock and agribusiness

 

699

 

 

 

17

 

 

 

291

 

 

 

4

 

Municipal lease finance receivables

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

SFR mortgage

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Consumer and other loans

 

32

 

 

 

-

 

 

 

-

 

 

 

1

 

Total collateral-dependent loans

$

7,762

 

 

$

3,613

 

 

$

370

 

 

 

33

 

 

 

 

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

 
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,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

(Dollars in thousands)

 

Performing TDRs:

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

$

5,198

 

 

$

8,215

 

 

$

5,293

 

 

$

2,159

 

New modifications

 

3,204

 

 

 

-

 

 

 

3,204

 

 

 

7,096

 

Payoffs/payments, net and other

 

(2,574

)

 

 

(240

)

 

 

(2,669

)

 

 

(1,280

)

TDRs returned to accrual status

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

TDRs placed on nonaccrual status

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Ending balance

$

5,828

 

 

$

7,975

 

 

$

5,828

 

 

$

7,975

 

Nonperforming TDRs:

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

New modifications

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Charge-offs

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Payoffs/payments, net and other

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

TDRs returned to accrual status

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

TDRs placed on nonaccrual status

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Ending balance

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 Total TDRs

$

5,828

 

 

$

7,975

 

 

$

5,828

 

 

$

7,975

 
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, 2022

 

 

Number of Loans

 

 

Pre-Modification Outstanding Recorded Investment

 

 

Post-Modification Outstanding Recorded
Investment

 

 

Outstanding Recorded Investment at September 30, 2022

 

 

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

 

2

 

 

 

3,204

 

 

 

3,204

 

 

 

3,204

 

 

 

-

 

SFR mortgage:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate reduction

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Change in amortization period
   or maturity

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total loans

 

2

 

 

$

3,204

 

 

$

3,204

 

 

$

3,204

 

 

$

-

 

 

 

 

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, 2022

 

 

Number of Loans

 

 

Pre-Modification Outstanding Recorded Investment

 

 

Post-Modification Outstanding Recorded
Investment

 

 

Outstanding Recorded Investment at September 30, 2022

 

 

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

 

2

 

 

 

3,204

 

 

 

3,204

 

 

 

3,204

 

 

 

-

 

SFR mortgage:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate reduction

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Change in amortization period
   or maturity

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total loans

 

2

 

 

$

3,204

 

 

$

3,204

 

 

$

3,204

 

 

$

-

 

 

 

 

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.