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Allowance for Credit Losses on Loans
 6 Months Ended
Jun. 30, 2020
Allowance For Loan And Lease Losses [Abstract]  
Allowance for Credit Losses on Loans Allowance for Credit Losses on Loans
The following tables summarize the activity in the allowance for credit losses on loans, and ending balance of loans, net of unearned fees for the periods indicated:
Allowance for Loan Losses – Three Months Ended June 30, 2020
(in thousands)Beginning
Balance		Charge-offsRecoveriesProvisionEnding 
Balance
Commercial real estate:
CRE non-owner occupied$18,034  $—  $5  $8,052  $26,091  
CRE owner occupied5,366  —  4  3,340  8,710  
Multifamily5,140  —  —  3,441  8,581  
Farmland713  —  —  755  1,468  
Total commercial real estate loans29,253  —  9  15,588  44,850  
Consumer:
SFR 1-4 1st DT liens5,650  (11) 2  2,374  8,015  
SFR HELOCs and junior liens11,196  (23) 92  843  12,108  
Other2,746  (243) 72  467  3,042  
Total consumer loans19,592  (277) 166  3,684  23,165  
Commercial and industrial3,867  (214) 55  310  4,018  
Construction4,595  —  —  2,180  6,775  
Agriculture production593  —  —  326  919  
Leases11  —  —  1  12  
Total$57,911  $(491) $230  $22,089  $79,739  

Allowance for Loan Losses – Six months ended June 30, 2020
(in thousands)Beginning
Balance		Impact of CECL AdoptionCharge-offsRecoveriesProvisionEnding 
Balance
Commercial real estate:
CRE non-owner occupied$5,948  $6,701  $—  $193  $13,249  $26,091  
CRE owner occupied2,027  2,281  —  9  4,393  8,710  
Multifamily3,352  2,281  —  —  2,948  8,581  
Farmland668  585  —  —  215  1,468  
Total commercial real estate loans11,995  11,848  —  202  20,805  44,850  
Consumer:
SFR 1-4 1st DT liens2,306  2,675  (11) 412  2,633  8,015  
SFR HELOCs and junior liens6,183  4,638  (23) 140  1,170  12,108  
Other1,595  971  (373) 167  682  3,042  
Total consumer loans10,084  8,284  (407) 719  4,485  23,165  
Commercial and industrial4,867  (1,961) (594) 181  1,525  4,018  
Construction3,388  933  —  —  2,454  6,775  
Agriculture production261  (179) —  20  817  919  
Leases21  (12) —  —  3  12  
Total$30,616  $18,913  $(1,001) $1,122  $30,089  $79,739  

In determining the allowance for credit losses, accruing loans with similar risk characteristics are generally evaluated collectively. To estimate expected losses the Company generally utilizes historical loss trends and the remaining contractual lives of the loan portfolios to determine estimated credit losses through a reasonable and supportable forecast period. Individual loan credit quality indicators including loan grade and borrower repayment performance have been statistically correlated with historical credit losses and various econometrics, including California unemployment, gross domestic product, and corporate bond yields. Model forecasts may be adjusted for inherent limitations or biases that have been identified through independent validation and back-testing of model performance to actual realized results. At both January 1, 2020, the adoption and implementation date of ASC Topic 326, and June 30, 2020, the Company utilized a reasonable and supportable forecast period of approximately eight quarters and obtained the forecast data from publicly available sources. The Company also considered the impact of portfolio concentrations, changes in underwriting practices, imprecision in its economic forecasts, and other risk factors that might influence its loss estimation process. During the quarter ended June 30, 2020 the majority of the increase in ACL reflects potential future credit deterioration. Specifically, portfolio-wide qualitative indicators such as the
outlook for changes in California Unemployment and Gross Domestic Product (GDP), resulted in a $19,143,000 increase in credit reserves on loans. Management further noted that the majority of economic forecasts, as of the end of the current quarter, utilized in the ACL calculation have shown a migration in the estimated timing of recovery from late 2020 as the end of the first quarter to mid-2021 or beyond. Management believes that the allowance for credit losses at June 30, 2020 appropriately reflected expected credit losses inherent in the loan portfolio at that date.

Allowance for Loan Losses – Year Ended December 31, 2019
(in thousands)Beginning
Balance		Charge-offsRecoveriesProvision
(benefit)		Ending Balance
Commercial real estate:
CRE non-owner occupied$7,401  $—  $1,486  $(2,939) $5,948  
CRE owner occupied2,711  (746) 42  20  2,027  
Multifamily2,429  —  —  923  3,352  
Farmland403—  —  265668  
Total commercial real estate loans12,944  (746) 1,528  (1,731) 11,995  
Consumer:
SFR 1-4 1st DT liens2,676  (2) 54  (422) 2,306  
SFR HELOCs and junior liens7,582  (3) 935  (2,331) 6,183  
Other793  (765) 321  1,246  1,595  
Total consumer loans11,051  (770) 1,310  (1,507) 10,084  
Commercial and industrial5,610  (2,104) 513  848  4,867  
Construction2,497  —  —  891  3,388  
Agriculture production480  (19) 12  (212) 261  
Leases—  —  —  21  21  
Total$32,582  $(3,639) $3,363  $(1,690) $30,616  

Allowance for Loan Losses – Three Months Ended June 30, 2019
(in thousands)Beginning
Balance		Charge-offsRecoveriesProvision
(benefit)		Ending Balance
Commercial real estate:
CRE non-owner occupied$6,268  $—  $6  $(92) $6,182  
CRE owner occupied2,323  —  4  (113) 2,214  
Multifamily3,271  —  —  (189) 3,082  
Farmland468  —  —  153  621  
Total commercial real estate loans12,330  —  10  (241) 12,099  
Consumer:—  
SFR 1-4 1st DT liens2,500  (2) 3  75  2,576  
SFR HELOCs and junior liens7,301  —  354  (554) 7,101  
Other1,040  (153) 108  456  1,451  
Total consumer loans10,841  (155) 465  (23) 11,128  
Commercial and industrial5,854  (138) 84  681  6,481  
Construction2,815  —  —  81  2,896  
Agriculture production224  —  1  39  264  
Leases—  —  —  —  —  
Total$32,064  $(293) $560  $537  $32,868  
Allowance for Loan Losses – Six months ended June 30, 2019
(in thousands)Beginning
Balance		Charge-offsRecoveriesProvision
(benefit)		Ending Balance
Commercial real estate:
CRE non-owner occupied$7,401  $—  $1,383  $(2,602) $6,182  
CRE owner occupied2,711—8(505)2,214
Multifamily2,429——6533,082
Farmland403——218621
Total commercial real estate loans12,944—1,391(2,236)12,099
Consumer:
SFR 1-4 1st DT liens2,676(2)5(103)2,576
SFR HELOCs and junior liens7,582—536(1,017)7,101
Other793(360)1838351,451
Total consumer loans11,051(362)724(285)11,128
Commercial and industrial5,610(657)2421,2866,481
Construction2,497——3992,896
Agriculture production480—11(227)264
Leases—————
Total$32,582  $(1,019) $2,368  $(1,063) $32,868  

As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including, but not limited to, trends relating to (i) the level of criticized and classified loans, (ii) net charge-offs, (iii) non-performing loans, and (iv) delinquency within the portfolio. The Company analyzes loans individually to classify the loans as to credit risk and grading. This analysis is performed annually for all outstanding balances greater than $1,000,000 and non-homogeneous loans, such as commercial real estate loans, unless other indicators, such as delinquency, trigger more frequent evaluation. Loans below the $1,000,000 threshold and homogenous in nature are evaluated as needed for proper grading based on delinquency and borrower credit scores.
The Company utilizes a risk grading system to assign a risk grade to each of its loans. Loans are graded on a scale ranging from Pass to Loss. A description of the general characteristics of the risk grades is as follows:
•Pass– This grade represents loans ranging from acceptable to very little or no credit risk. These loans typically meet most if not all policy standards in regard to: loan amount as a percentage of collateral value, debt service coverage, profitability, leverage, and working capital.
•Special Mention– This grade represents “Other Assets Especially Mentioned” in accordance with regulatory guidelines and includes loans that display some potential weaknesses which, if left unaddressed, may result in deterioration of the repayment prospects for the asset or may inadequately protect the Company’s position in the future. These loans warrant more than normal supervision and attention.
•Substandard– This grade represents “Substandard” loans in accordance with regulatory guidelines. Loans within this rating typically exhibit weaknesses that are well defined to the point that repayment is jeopardized. Loss potential is, however, not necessarily evident. The underlying collateral supporting the credit appears to have sufficient value to protect the Company from loss of principal and accrued interest, or the loan has been written down to the point where this is true. There is a definite need for a well-defined workout/rehabilitation program.
•Doubtful– This grade represents “Doubtful” loans in accordance with regulatory guidelines. An asset classified as Doubtful has all the weaknesses inherent in a loan classified Substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Pending factors include proposed merger, acquisition, or liquidation procedures, capital injection, perfecting liens on additional collateral, and financing plans.
•Loss– This grade represents “Loss” loans in accordance with regulatory guidelines. A loan classified as Loss is considered uncollectible and of such little value that its continuance as a bankable asset is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off the loan, even though some recovery may be affected in the future. The portion of the loan that is graded loss should be charged off no later than the end of the quarter in which the loss is identified.
Based on the most recent analysis performed, the risk category of loans by class of loans is as follows for the period indicated:

Term Loans Amortized Cost Basis by Origination Year – As of June 30, 2020
(in thousands)20202019201820172016PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
Commercial real estate:
CRE non-owner occupied risk ratings
Pass$68,986  $255,297  $178,000  $273,918  $207,896  $519,597  $66,225  $—  $1,569,919  
Special Mention—  1,266  —  1,712  7,374  603  11,014  —21,969  
Substandard—  —  1,479  466  —  3,108  —  —5,053  
Doubtful/Loss—  —  —  —  —  —  —  —  —  
Total CRE non-owner occupied risk ratings$68,986  $256,563  $179,479  $276,096  $215,270  $523,308  $77,239  $—  $1,596,941  


Commercial real estate:
CRE owner occupied risk ratings
Pass$50,412  $61,065  $52,394  $65,943  $63,286  $249,270  $17,464  $—  $559,834  
Special Mention—  —  —  4,302  3,821  5,602  —  —  13,725  
Substandard—  1,459  —  484  693  3,608  —  —  6,244  
Doubtful/Loss—  —  —  —  —  —  —  —  —  
Total CRE owner occupied risk ratings$50,412  $62,524  $52,394  $70,729  $67,800  $258,480  $17,464  $—  $579,803  


Commercial real estate:
Multifamily risk ratings
Pass$47,118  $90,562  $109,562  $73,089  $94,016  $130,181  $28,518  $—  $573,046  
Special Mention67  —  —  612  —  —  1,468  —  2,147  
Substandard—  —  —  —  2,024  —  —  —  2,024  
Doubtful/Loss—  —  —  —  —  —  —  —  —  
Total multifamily loans$47,185  $90,562  $109,562  $73,701  $96,040  $130,181  $29,986  $—  $577,217  
Term Loans Amortized Cost Basis by Origination Year – As of June 30, 2020
(in thousands)20202019201820172016PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
Commercial real estate:
Farmland risk ratings
Pass$6,510  $27,441  $20,217  $11,885  $8,930  $21,473  $42,694  $—  $139,150  
Special Mention—  —  —  1,271  226  3,277  1,512  —  6,286  
Substandard—  699  —  614  451  2,603  1,721  —  6,088  
Doubtful/Loss—  —  —  —  —  —  —  —  —  
Total farmland loans$6,510  $28,140  $20,217  $13,770  $9,607  $27,353  $45,927  $—  $151,524  


Consumer loans:
SFR 1-4 1st DT liens risk ratings
Pass$61,920  $90,702  $51,816  $64,342  $56,167  $163,073  $—  $5,708  $493,728  
Special Mention—29274556171,735—5093,183
Substandard——5641,8399484,980—8279,158
Doubtful/Loss—————————
Total SFR 1st DT liens$61,920  $90,994  $52,454  $66,737  $57,132  $169,788  $—  $7,044  $506,069  


Consumer loans:
SFR HELOCs and Junior Liens
Pass$—  $500  $13  $375  $373  $1,716  $324,511  $17,075  $344,563  
Special Mention——18——374,8287955,678
Substandard————134665,8181,8287,846
Doubtful/Loss—————————
Total SFR HELOCs and Junior Liens$—  $500  $31  $375  $507  $1,819  $335,157  $19,698  $358,087  
Term Loans Amortized Cost Basis by Origination Year – As of June 30, 2020
(in thousands)20202019201820172016PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
Consumer loans:
Other risk ratings
Pass$14,687  $37,507  $18,556  $5,471  $1,555  $1,530  $1,148  $—  $80,454  
Special Mention24  104  211  93  36  118  93  —  679  
Substandard—  133  83  73  15  54  22  —  380  
Doubtful/Loss—  —  —  —  —  —  —  —  —  
Total other consumer loans$14,711  $37,744  $18,850  $5,637  $1,606  $1,702  $1,263  $—  $81,513  


Commercial and industrial loans:
Commercial and industrial risk ratings
Pass$439,901  $54,477  $26,595  $20,081  $7,530  $12,517  $66,817  $1,240  $629,158  
Special Mention——65348113801,043121,661  
Substandard—145601,2241,0361419241323,662  
Doubtful/Loss—————————  
Total commercial and industrial loans$439,901  $54,622  $26,720  $21,653  $8,679  $12,738  $68,784  $1,384  $634,481  


Construction loans:
Construction risk ratings
Pass$39,391  $57,143  $105,394  $45,971  $20,782  $3,089  $—  $—  $271,770  
Special Mention—  —  —  346  4,385  1,824  —  —  6,555  
Substandard—  ——  —  —  241  —  —  241  
Doubtful/Loss————————  —  
Total construction loans$39,391  $57,143  $105,394  $46,317  $25,167  $5,154  $—  $—  $278,566  
Term Loans Amortized Cost Basis by Origination Year – As of June 30, 2020
(in thousands)20202019201820172016PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
Agriculture production loans:
Agriculture production risk ratings
Pass$59  $1,744  $1,060  $907  $787  $595  $29,856  $—  $35,008  
Special Mention—  —  —  —  —  —  —  —  —  
Substandard—  —  —  —  19  (12) 426  —  433  
Doubtful/Loss—  —  —  —  —  —  —  —  —  
Total agriculture production loans$59  $1,744  $1,060  $907  $806  $583  $30,282  $—  $35,441  


Leases:
Lease risk ratings
Pass$1,763  $—  $—  $—  $—  $—  $—  $—  $1,763
Special Mention—  —  —  —  —  —  —  —  —  
Substandard—  —  —  —  —  —  —  —  —  
Doubtful/Loss—  —  —  —  —  —  —  ——  
Total leases$1,763  $—  $—  $—  $—  $—  $—  $—  $1,763  


Total loans outstanding:
Risk ratings
Pass$730,747  $676,438  $563,607  $561,982  $461,322  $1,103,041  $577,233  $24,023  $4,698,393  
Special Mention91  1,662  368  9,240  15,972  13,276  19,958  1,316  61,883
Substandard—  2,436  2,186  4,700  5,320  14,789  8,911  2,787  41,129
Doubtful/Loss—  —  —  —  —  —  —  —  —  
Total loans outstanding$730,838  $680,536  $566,161  $575,922  $482,614  $1,131,106  $606,102  $28,126  $4,801,405  
Term Loans Amortized Cost Basis by Origination Year – As of December 31, 2019
(in thousands)2019201820172016PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
Commercial real estate:
CRE non-owner occupied risk ratings
Pass$253,321  $174,869  $287,183  $221,864  $578,255  $77,070  $—  $1,592,562  
Special Mention—  —  3,182  8,401  616  —  —  12,199
Substandard—  1,183  474  —  3,138  —  —  4,795
Doubtful/Loss—  —  —  —  —  —  —  $0
Total CRE non-owner occupied risk ratings$253,321  $176,052  $290,839  $230,265  $582,009  $77,070  $—  $1,609,556  

Commercial real estate:
CRE owner occupied risk ratings
Pass$57,376  $54,298  $73,019  $69,136  $263,750  $18,524  $—  $536,103  
Special Mention—  —  437  745  3,459  —  —  4,641  
Substandard601  —  493  726  3,870  —  —  5,690  
Doubtful/Loss—  —  —  —  —  —  —  —  
Total CRE owner occupied risk ratings$57,977  $54,298  $73,949  $70,607  $271,079  $18,524  $—  $546,434  


Commercial real estate:
Multifamily risk ratings
Pass$82,435  $112,739  $41,673  $99,170  $141,040  $36,061  $—  $513,118  
Special Mention—  —  —  —  1,103  1,480  —  2,583  
Substandard—  —  —  2,024  —  —  —  2,024  
Doubtful/Loss—  —  —  —  —  —  —  —  
Total multifamily loans$82,435  $112,739  $41,673  $101,194  $142,143  $37,541  $—  $517,725  
Term Loans Amortized Cost Basis by Origination Year – As of December 31, 2019
(in thousands)2019201820172016PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
Commercial real estate:
Farmland risk ratings
Pass$26,786  $21,212  $12,248  $9,618  $22,471  $41,783  $—  $134,118  
Special Mention—  —  1,346  226  3,289  774  —  5,635  
Substandard—  —  624  466  2,929  1,295  —  5,314  
Doubtful/Loss—  —  —  —  —  —  —  —  
Total farmland loans$26,786  $21,212  $14,218  $10,310  $28,689  $43,852  $—  $145,067  

Consumer loans:
SFR 1-4 1st DT liens risk ratings
Pass$102,612  $63,542  $73,195  $65,051  $187,972  $—  $6,242  $498,614  
Special Mention—  —  1,408  19  2,564  —  723  4,714  
Substandard—  813  711  52  4,050  —  554  6,180  
Doubtful/Loss—  —  —  —  —  —  —  —  
Total SFR 1st DT liens$102,612  $64,355  $75,314  $65,122  $194,586  $—  $7,519  $509,508  


Consumer loans:
SFR HELOCs and Junior Liens
Pass$1,412  $14  $382  $403  $2,077  $327,589  $19,531  $351,408  
Special Mention—  20  —  —  4  4,189  1,169  5,382  
Substandard—  —  —  156  14  4,208  1,718  6,096  
Doubtful/Loss—  —  —  —  —  —  —  —  
Total SFR HELOCs and Junior Liens$1,412  $34  $382  $559  $2,095  $335,986  $22,418  $362,886  
Term Loans Amortized Cost Basis by Origination Year – As of December 31, 2019
(in thousands)2019201820172016PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
Consumer loans:
Other risk ratings
Pass$45,876  $23,045  $7,176  $2,245  $2,071  $1,402  $—  $81,815  
Special Mention56  182  176  52  161  91  —  718  
Substandard60  —  13  —  35  15  —  123  
Doubtful/Loss—  —  —  —  —  —  —  —  
Total other consumer loans$45,992  $23,227  $7,365  $2,297  $2,267  $1,508  $—  $82,656  


Commercial and industrial loans:
Commercial and industrial risk ratings
Pass$61,720  $31,149  $24,176  $10,747  $16,346  $96,654  $973  $241,765  
Special Mention—  339  1,141  151  164  1,921  110  3,826  
Substandard—  47  1,281  1,571  401  814  86  4,200  
Doubtful/Loss—  —  —  —  —  —  —  —  
Total commercial and industrial loans$61,720  $31,535  $26,598  $12,469  $16,911  $99,389  $1,169  $249,791  



Construction loans:
Construction risk ratings
Pass$50,275  $92,449  $76,042  $18,973  $7,322  $—  $—  $245,061  
Special Mention—  —  —  4,202  317  —  —  4,519  
Substandard—  —  —  —  247  —  —  247  
Doubtful/Loss—  —  —  —  —  —  —  —  
Total construction loans$50,275  $92,449  $76,042  $23,175  $7,886  $—  $—  $249,827  
Term Loans Amortized Cost Basis by Origination Year – As of December 31, 2019
(in thousands)2019201820172016PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
Agriculture production risk ratings
Pass$1,929  $1,201  $1,324  $1,012  $834  $26,306  $—  $32,606  
Special Mention—  —  —  —  —  —  —  —  
Substandard—  —  —  27  —  —  —  27  
Doubtful/Loss—  —  —  —  —  —  —  —  
Total agriculture production loans$1,929  $1,201  $1,324  $1,039  $834  $26,306  $—  $32,633  

Leases:
Lease risk ratings
Pass$1,283  $—  $—  $—  $—  $—  $—  $1,283  
Special Mention—  —  —  —  —  —  —  —  
Substandard—  —  —  —  —  —  —  —  
Doubtful/Loss—  —  —  —  —  —  —  —  
Total leases$1,283  $—  $—  $—  $—  $—  $—  $1,283  

Total loans outstanding:
Risk ratings
Pass$685,025  $574,518  $596,418  $498,219  $1,222,138  $625,389  $26,746  $4,228,453  
Special Mention56  541  7,690  13,796  11,677  8,455  2,002  44,217  
Substandard661  2,043  3,596  5,022  14,684  6,332  2,358  34,696  
Doubtful/Loss—  —  —  —  —  —  —  —  
Total loans outstanding$685,742  $577,102  $607,704  $517,037  $1,248,499  $640,176  $31,106  $4,307,366  
The following table shows the ending balance of current and past due originated loans by loan category as of the date indicated:

Analysis of Past Due Loans - As of June 30, 2020
(in thousands)30-59 days60-89 days> 90 daysTotal Past
Due Loans		CurrentTotal
Commercial real estate:
CRE non-owner occupied$2,589  $667  $113  $3,369  $1,593,572  $1,596,941  
CRE owner occupied954  1,188  387  2,529  577,274  579,803  
Multifamily—  —  2,024  2,024  575,193  577,217  
Farmland180  —  —  180  151,344  151,524  
Total commercial real estate loans3,723  1,855  2,524  8,102  2,897,383  2,905,485  
Consumer:
SFR 1-4 1st DT liens—  1,046  2,270  3,316  502,753  506,069  
SFR HELOCs and junior liens125  453  2,249  2,827  355,260  358,087  
Other85  229  80  394  81,119  81,513  
Total consumer loans210  1,728  4,599  6,537  939,132  945,669  
Commercial and industrial751  767  181  1,699  632,782  634,481  
Construction19  —  —  19  278,547  278,566  
Agriculture production115  —  150  265  35,176  35,441  
Leases—  —  —  —  1,763  1,763  
Total$4,818  $4,350  $7,454  $16,622  $4,784,783  $4,801,405  

The following table shows the ending balance of current and past due originated loans by loan category as of the date indicated:
Analysis of Past Due Loans - As of December 31, 2019
(in thousands)30-59 days60-89 days> 90 daysTotal Past
Due Loans		CurrentTotal
Commercial real estate:
CRE non-owner occupied$268  $136  $114  $518  $1,609,038  $1,609,556  
CRE owner occupied—  293  293  546,141  546,434  
Multifamily283  —  2,024  2,307  515,418  517,725  
Farmland300030145,037145,067
Total commercial real estate loans581  136  2,431  3,148  2,815,634  2,818,782  
Consumer:
SFR 1-4 1st DT liens1,149  371  1,957  3,477  506,031  509,508  
SFR HELOCs and junior liens1,258  580  1,088  2,926  359,960  362,886  
Other172  1  23  196  82,460  82,656  
Total consumer loans2,5799523,0686,599948,451955,050
Commercial and industrial603  297  24  924  248,867  249,791  
Construction—  —  —  —  249,827  249,827  
Agriculture production49  —  —  49  32,584  32,633  
Leases—  —  —  —  1,283  1,283  
Total$3,812  $1,385  $5,523  $10,720  $4,296,646  $4,307,366  
The following table shows the ending balance of non accrual loans by loan category as of the date indicated:
Non Accrual Loans
As of June 30, 2020As of December 31, 2019
(in thousands)Non accrual with no allowance for credit lossesTotal non accrualPast due 90 days or more and still accruingNon accrual with no allowance for credit lossesTotal non accrualPast due 90 days or more and still accruing
Commercial real estate:
CRE non-owner occupied$677  $677  $—  $639  $642  $—  
CRE owner occupied2,266  2,409  —  1,411  1,408  —  
Multifamily2,024  2,024  —  2,024  2,024  —  
Farmland1,819  1,819  —  1,242  1,242  —  
Total commercial real estate loans6,786  6,929  —  5,316  5,316  —  
Consumer:
SFR 1-4 1st DT liens5,737  6,719  —  5,023  5,192  —  
SFR HELOCs and junior liens4,128  5,665  —  3,992  4,217  —  
Other82  105  1  4  32  19  
Total consumer loans9,947  12,489  1  9,019  9,441  19  
Commercial and industrial973  1,680  30  476  2,050  —  
Construction—  —  —  —  —  —  
Agriculture production282  445  —  14  38  —  
Leases—  —  —  —  
Sub-total17,98821,5433114,82516,84519
Less: Guaranteed loans(813) (813) —  (916) (990) —  
Total, net$17,175  $20,730  $31  $13,909  $15,855  $19  
Interest income on non accrual loans that would have been recognized during the three months ended June 30, 2020 and 2019, if all such loans had been current in accordance with their original terms, totaled $428,000 and $449,000, respectively. Interest income actually recognized on these originated loans during the three months ended June 30, 2020 and 2019 was $39,000 and $164,000, respectively.
Interest income on non accrual loans that would have been recognized during the six months ended June 30, 2020 and 2019, if all such loans had been current in accordance with their original terms, totaled $859,000 and $849,000, respectively. Interest income actually recognized on these originated loans during the six months ended June 30, 2020 and 2019 was $86,000 and $257,000, respectively.
The following tables present the amortized cost basis of collateral dependent loans by class of loans as of the following periods:

As of June 30, 2020
(in thousands)RetailOfficeWarehouseOtherMultifamilyFarmlandSFR -1st DeedSFR -2nd DeedAutomobile/TruckA/R and InventoryEquipmentTotal
Commercial real estate:
CRE non-owner occupied$677  $—  $1,207  $—  $—  $—  $—  $—  $—  $—  $—  $1,884  
CRE owner occupied833  1,023  630  451  —  —  —  —  —  —  —  2,937  
Multifamily—  —  —  —  2,024  —  —  —  —  —  —  2,024  
Farmland—  —  —  —  —  1,368  —  —  —  —  —  1,368  
Total commercial real estate loans1,510  1,023  1,837  451  2,024  1,368  —  —  —  —  —  8,213  
Consumer:
SFR 1-4 1st DT liens—  —  —  —  —  —  6,055  —  —  —  —  6,055  
SFR HELOCs and junior liens—  —  —  —  —  —  1,105  3,569  —  —  —  4,674  
Other—  —  —  3  —  —  —  —  83  —  —  86  
Total consumer loans—  —  —  3  —  —  7,160  3,569  83  —  —  10,815  
Commercial and industrial—  —  —  9  —  —  —  —  —  1,413  212  1,634  
Construction—  —  —  —  —  —  —  —  —  —  —  —  
Agriculture production—  —  —  426  —  —  —  —  —  13  6  445  
Leases—  —  —  —  —  —  —  —  —  —  —  —  
Total$1,510  $1,023  $1,837  $889  $2,024  $1,368  $7,160  $3,569  $83  $1,426  $218  $21,107  

As of December 31, 2019
(in thousands)RetailOfficeWarehouseOtherMultifamilyFarmlandSFR -1st DeedSFR -2nd DeedAutomobile/TruckA/R and InventoryEquipmentTotal
Commercial real estate:
CRE non-owner occupied$2,145  $—  $1,220  $497  $—  $—  $—  $—  $—  $—  $—  $3,862  
CRE owner occupied361  163  420  13  —  —  —  —  —  —  1,000  1,957  
Multifamily—  —  —  —  2,060  —  —  —  —  —  —  2,060  
Farmland—  —  —  —  —  —1,242  —  —  —  —  —  1,242  
Total commercial real estate loans2,506  163  1,640  510  2,060  1,242  —  —  —  —  1,000  9,121  
Consumer:
SFR 1-4 1st DT liens—  —  —  —  —  —  5,341  —  —  —  —  5,341  
SFR HELOCs and junior liens—  —  —  —  —  —  —  3,848  —  —  —  3,848  
Other—  —  —  3  —  —  —  —  27  —  —  30  
Total consumer loans—  —  —  3  —  —  5,341  3,848  27  —  —  9,219  
Commercial and industrial—  —  —  107  —  —  —  —  —  1,926  14  2,047  
Construction—  —  —  —  —  —  —  —  —  —  —  —  
Agriculture production—  —  —  —  —  —  —  —  —  26  12  38  
Leases—  —  —  —  —  —  —  —  —  —  —  —  
Total$2,506  $163  $1,640  $620  $2,060  $1,242  $5,341  $3,848  $27  $1,952  $1,026  $20,425  
The CARES Act, in addition to providing financial assistance to both businesses and consumers, provides financial institutions the option to temporarily suspend certain requirements under GAAP related to troubled debt restructurings for a limited period of time to account for the effects of COVID-19. The banking regulatory agencies have likewise issued guidance encouraging financial institutions to work prudently with borrowers who are, or may be, unable to meet their contractual payment obligations because of the effects of COVID-19. That guidance, with concurrence of the Financial Accounting Standards Board and provisions of the CARES Act, allow modifications made on a good faith basis in response to COVID-19 to borrowers who were generally current with their payments prior to any relief, to not be treated as troubled debt restructurings. To the extent that such modifications meet the criteria previously described, such modifications are not expected to be classified as troubled debt restructurings.The following tables show certain information regarding TDRs that occurred during the periods indicated:
TDR information for the three months ended June 30, 2020
(dollars in thousands)NumberPre-mod
outstanding
principal
balance		Post-mod
outstanding
principal
balance		Financial
impact due to
TDR taken as
additional
provision		Number that
defaulted during
the period		Recorded
investment of
TDRs that
defaulted during
the period		Financial impact
due to the
default of
previous TDR
taken as charge-
offs or additional
provisions
Commercial real estate:
CRE non-owner occupied—  $—  $—  $—  —  $—  $—  
CRE owner occupied—  $—  $—  $—  —  $—  $—  
Multifamily—  $—  $—  $—  —  $—  $—  
Farmland—  $—  $—  $—  —  $—  $—  
Total commercial real estate loans—  $—  $—  $—  —  $—  $—  
Consumer:
SFR 1-4 1st DT liens—  $—  $—  $—  1  $735  $—  
SFR HELOCs and junior liens—  $—  $—  $—  —  $—  $—  
Other—  $—  $—  $—  —  $—  $—  
Total consumer loans—  $—  $—  $—  1  $735  $—  
Commercial and industrial—  $—  $—  $—  —  $—  $—  
Construction—  $—  $—  $—  —  $—  $—  
Agriculture production—  $—  $—  $—  —  $—  $—  
Leases—  $—  $—  $—  —  $—  $—  
Total—  $—  $—  $—  1  $735  $—  


TDR information for the three months ended June 30, 2019
(dollars in thousands)NumberPre-mod
outstanding
principal
balance		Post-mod
outstanding
principal
balance		Financial
impact due to
TDR taken as
additional
provision		Number that
defaulted during
the period		Recorded
investment of
TDRs that
defaulted during
the period		Financial impact
due to the
default of
previous TDR
taken as charge-
offs or additional
provisions
Commercial real estate:
CRE non-owner occupied—  $—  $—  $—  —  $—  $—  
CRE owner occupied—  —  —  —  —  —  —  
Multifamily—  —  —  —  —  —  —  
Farmland—  —  —  —  —  —  —  
Total commercial real estate loans—  —  —  —  —  —  —  
Consumer:
SFR 1-4 1st DT liens—  —  —  —  —  —  —  
SFR HELOCs and junior liens2  93  95  27  —  —  —  
Other—  —  —  —  —  —  —  
Total consumer loans2  93  95  27  —  
Commercial and industrial4  1,754  1,722  2  —  —  —  
Construction—  —  —  —  —  —  —  
Agriculture production—  —  —  —  —  —  —  
Leases—  —  —  —  —  —  —  
Total6  $1,847  $1,817  $29  —  $—  $—  
TDR Information for the six months ended June 30, 2020
(dollars in thousands)NumberPre-mod
outstanding
principal
balance		Post-mod
outstanding
principal
balance		Financial
impact due to
TDR taken as
additional
provision		Number that
defaulted during
the period		Recorded
investment of
TDRs that
defaulted during
the period		Financial impact
due to the
default of
previous TDR
taken as charge-
offs or additional
provisions
Commercial real estate:
CRE non-owner occupied1  $257  $251  $—  —  $—  $—  
CRE owner occupied—  —  —  —  —  —  —  
Multifamily—  —  —  —  —  —  —  
Farmland2  230  298  —  —  —  —  
Total commercial real estate loans3  487  549  —  —  —  —  
Consumer:
SFR 1-4 1st DT liens—  —  —  —  2  1,037  —  
SFR HELOCs and junior liens2  172  169  —  —  —  —  
Other—  —  —  —  —  —  —  
Total consumer loans2  172  169  —  2  1,037  —  
Commercial and industrial1  21  20  21  —  —  —  
Construction—  —  —  —  —  —  —  
Agriculture production—  —  —  —  —  —  —  
Leases—  —  —  —  —  —  —  
Total6  $680  $738  $21  2  $1,037  $—  


TDR Information for the six months ended June 30, 2019
(dollars in thousands)NumberPre-mod
outstanding
principal
balance		Post-mod
outstanding
principal
balance		Financial
impact due to
TDR taken as
additional
provision		Number that
defaulted during
the period		Recorded
investment of
TDRs that
defaulted during
the period		Financial impact
due to the
default of
previous TDR
taken as charge-
offs or additional
provisions
Commercial real estate:
CRE non-owner occupied—  $—  $—  $—  —  $—  $—  
CRE owner occupied—  —  —  —  —  —  —  
Multifamily—  —  —  —  —  —  —  
Farmland—  —  —  —  —  —  —  
Total commercial real estate loans—  —  —  —  —  —  —  
Consumer:
SFR 1-4 1st DT liens1  163  162  —  —  —  —  
SFR HELOCs and junior liens3  214  215  —  —  —  —  
Other—  —  —  —  —  —  —  
Total consumer loans4  377  377  —  —  —  —  
Commercial and industrial6  1,768  1,737  31  1  7  —  
Construction—  —  —  —  —  —  —  
Agriculture production—  —  —  —  —  —  —  
Leases—  —  —  —  —  —  —  
Total10  $2,145  $2,114  $31  1  $7  $—  
The Company also modified the terms of select loans in an effort to assist borrowers that were not related to the COVID-19 pandemic. If the borrower was experiencing financial difficulty and a concession was granted, the Company considered such modifications as troubled debt restructurings. Modifications classified as TDRs can include one or a combination of the following: rate modifications, term extensions, interest only modifications, either temporary or long-term, payment modifications, and collateral substitutions/additions. The objective of the modifications was to increase loan repayments by customers and thereby reduce net charge-offs. The modified loans are included in impaired loans for purposes of determining the level of the allowance for credit losses.
For all new TDRs, an impairment analysis is conducted. If the loan is determined to be collateral dependent, any additional amount of impairment will be calculated based on the difference between estimated collectible value and the current carrying balance of the loan. This difference could result in an increased provision and is typically charged off. If the asset is determined
not to be collateral dependent, the impairment is measured on the net present value difference between the expected cash flows of the restructured loan and the cash flows which would have been received under the original terms. The effect of this could result in a requirement for additional provision to the reserve. The effect of these required provisions for the period are indicated above.
Typically if a TDR defaults during the period, the loan is then considered collateral dependent and, if it was not already considered collateral dependent, an appropriate provision will be reserved or charge will be taken. The additional provisions required resulting from default of previously modified TDR’s are noted above. Loans that defaulted within the twelve month period subsequent to modification were not considered significant for financial reporting purposes.