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Allowance for Credit Losses on Loans
 9 Months Ended
Sep. 30, 2020
Allowance For Loan And Lease Losses [Abstract]  
Allowance for Credit Losses on Loans Allowance for Credit Losses on Loans
For the periods indicated, the following tables summarize the activity in the allowance for credit losses on loans which is recorded as a contra asset, and the reserve for unfunded commitments which is recorded on the balance sheet within other liabilities:
Allowance for Loan Losses – Three Months Ended September 30, 2020
(in thousands)Beginning
Balance		Charge-offsRecoveriesProvisionEnding 
Balance
Commercial real estate:
CRE non-owner occupied$26,091 $— $23 $2,733 $28,847 
CRE owner occupied8,710 — 1 914 9,625 
Multifamily8,581 — — 1,451 10,032 
Farmland1,468 — — 322 1,790 
Total commercial real estate loans44,850 — 24 5,420 50,294 
Consumer:
SFR 1-4 1st DT liens8,015 (2)2 922 8,937 
SFR HELOCs and junior liens12,108 — 126 (558)11,676 
Other3,042 (98)85 365 3,394 
Total consumer loans23,165 (100)213 729 24,007 
Commercial and industrial4,018 (94)142 468 4,534 
Construction6,775 — — 865 7,640 
Agriculture production919 — 2 172 1,093 
Leases12 — — (5)7 
Allowance for credit losses on loans79,739 (194)381 7,649 87,575 
Reserve for unfunded commitments3,000 — — — 3,000 
Total$82,739 $(194)$381 $7,649 $90,575 

Allowance for Loan Losses – Nine months ended September 30, 2020
(in thousands)Beginning
Balance		Impact of CECL AdoptionCharge-offsRecoveriesProvisionEnding 
Balance
Commercial real estate:
CRE non-owner occupied$5,948 $6,701 $— $223 $15,975 $28,847 
CRE owner occupied2,027 2,281 — 3 5,314 9,625 
Multifamily3,352 2,281 — — 4,399 10,032 
Farmland668 585 — — 537 1,790 
Total commercial real estate loans11,995 11,848 — 226 26,225 50,294 
Consumer:
SFR 1-4 1st DT liens2,306 2,675 (13)414 3,555 8,937 
SFR HELOCs and junior liens6,183 4,638 (23)265 613 11,676 
Other1,595 971 (471)253 1,046 3,394 
Total consumer loans10,084 8,284 (507)932 5,214 24,007 
Commercial and industrial4,867 (1,961)(688)323 1,993 4,534 
Construction3,388 933 — — 3,319 7,640 
Agriculture production261 (179)— 22 989 1,093 
Leases21 (12)— — (2)7 
Allowance for credit losses on loans30,616 18,913 (1,195)1,503 37,738 87,575 
Reserve for unfunded commitments2,775 — — — 225 3,000 
Total$33,391 $18,913 $(1,195)$1,503 $37,963 $90,575 

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 September 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 September 30, 2020 the majority of the increase in ACL reflects potential future credit deterioration. Specifically, portfolio-wide qualitative indicators for changes in California Unemployment and US Policy uncertainty contributed to the majority of the increase in credit reserves on loans as of September 30, 2020 as compared to the trailing quarter, adding approximately $9,556,000 to the required reserves. These increases were partially offset with a reduced need for reserves for concentration risks totaling $1,472,000 and reductions in specific reserves on individually evaluated loans of $321,000. Management noted that the majority of economic forecasts utilized in the ACL calculation have continued to identify an expanded duration of the current recessionary period as caused by the global pandemic and partially offset by the governmental stimulus that has been provided to date. Management believes that the allowance for credit losses at September 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 September 30, 2019
(in thousands)Beginning
Balance		Charge-offsRecoveriesProvision
(benefit)		Ending Balance
Commercial real estate:
CRE non-owner occupied$6,182 $— $8 $261 $6,451 
CRE owner occupied2,214 (746)118 93 1,679 
Multifamily3,082 — — 69 3,151 
Farmland621 — — 39 660 
Total commercial real estate loans12,099 (746)126 462 11,941 
Consumer:
SFR 1-4 1st DT liens2,576 — 47 (217)2,406 
SFR HELOCs and junior liens7,101 (3)183 (286)6,995 
Other1,451 (189)80 213 1,555 
Total consumer loans11,128 (192)310 (290)10,956 
Commercial and industrial6,481 (565)83 (528)5,471 
Construction2,896 — — 57 2,953 
Agriculture production264 (19)1 (30)216 
Leases— — — — — 
Total$32,868 $(1,522)$520 $(329)$31,537 
Allowance for Loan Losses – Nine months ended September 30, 2019
(in thousands)Beginning
Balance		Charge-offsRecoveriesProvision
(benefit)		Ending Balance
Commercial real estate:
CRE non-owner occupied$7,401 $— $1,397 $(2,347)$6,451 
CRE owner occupied2,711 (746)121 (407)1,679 
Multifamily2,429 — — 722 3,151 
Farmland403 — — 257 660 
Total commercial real estate loans12,944 (746)1,518 (1,775)11,941 
Consumer:
SFR 1-4 1st DT liens2,676 (2)53 (321)2,406 
SFR HELOCs and junior liens7,582 (3)719 (1,303)6,995 
Other793 (548)263 1,047 1,555 
Total consumer loans11,051 (553)1,035 (577)10,956 
Commercial and industrial5,610 (1,222)325 758 5,471 
Construction2,497 — — 456 2,953 
Agriculture production480 (20)10 (254)216 
Leases— — — — — 
Total$32,582 $(2,541)$2,888 $(1,392)$31,537 

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 September 30, 2020
(in thousands)20202019201820172016PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
Commercial real estate:
CRE non-owner occupied risk ratings
Pass$97,561 $249,707 $157,838 $264,223 $196,645 $489,900 $71,986 $— $1,527,860 
Special Mention— 7,562 11,981 8,892 11,936 12,641 12,257 —65,269 
Substandard— — 1,473 593 2,147 2,942 —7,155 
Doubtful/Loss— — — — — — — — — 
Total CRE non-owner occupied risk ratings$97,561 $257,269 $171,292 $273,708 $210,728 $505,483 $84,243 $— $1,600,284 

Commercial real estate:
CRE owner occupied risk ratings
Pass$67,205 $63,202 $49,719 $65,416 $55,970 $240,327 $17,662 $— $559,501 
Special Mention— — — 4,090 3,749 5,488 — — 13,327 
Substandard— 1,538 1,314 479 902 4,029 — — 8,262 
Doubtful/Loss— — — — — — — — — 
Total CRE owner occupied risk ratings$67,205 $64,740 $51,033 $69,985 $60,621 $249,844 $17,662 $— $581,090 

Commercial real estate:
Multifamily risk ratings
Pass$58,058 $96,373 $114,385 $72,493 $68,891 $123,875 $23,315 $— $557,390 
Special Mention9,443 — — 608 24,695 779 9,284 — 44,809 
Substandard— — — — — — — — — 
Doubtful/Loss— — — — — — — — — 
Total multifamily loans$67,501 $96,373 $114,385 $73,101 $93,586 $124,654 $32,599 $— $602,199 

Commercial real estate:
Farmland risk ratings
Pass$10,026 $23,970 $19,127 $11,677 $8,684 $20,133 $43,437 $— $137,054 
Special Mention— 2,566 — 1,271 227 3,271 2,005 — 9,340 
Substandard— 700 — 608 451 2,606 2,090 — 6,455 
Doubtful/Loss— — — — — — — — — 
Total farmland loans$10,026 $27,236 $19,127 $13,556 $9,362 $26,010 $47,532 $— $152,849 

Consumer loans:
SFR 1-4 1st DT liens risk ratings
Pass$103,547 $88,421 $44,171 $60,223 $50,397 $146,254 $— $5,351 $498,364 
Special Mention—291687553161,752—1,0014,300
Substandard——1,2031,2249444,888—8369,095
Doubtful/Loss—————————
Total SFR 1st DT liens$103,547 $88,712 $46,061 $62,000 $51,357 $152,894 $— $7,188 $511,759 
Term Loans Amortized Cost Basis by Origination Year – As of September 30, 2020
(in thousands)20202019201820172016PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
Consumer loans:
SFR HELOCs and Junior Liens
Pass$855 $— $13 $373 $358 $1,618 $299,380 $15,585 $318,182 
Special Mention——17——355,2497616,062
Substandard—499——124456,0711,8378,576
Doubtful/Loss—————————
Total SFR HELOCs and Junior Liens$855 $499 $30 $373 $482 $1,698 $310,700 $18,183 $332,820 

Consumer loans:
Other risk ratings
Pass$22,898 $33,118 $16,379 $4,930 $1,225 $1,252 $1,044 $— $80,846 
Special Mention38 320 139 80 39 99 88 — 803 
Substandard— 147 254 72 14 111 9 — 607 
Doubtful/Loss— — — — — — — — — 
Total other consumer loans$22,936 $33,585 $16,772 $5,082 $1,278 $1,462 $1,141 $— $82,256 

Commercial and industrial loans:
Commercial and industrial risk ratings
Pass$449,180 $54,413 $24,053 $16,445 $6,112 $10,808 $66,890 $1,062 $628,963 
Special Mention——2243127672588121,284 
Substandard—134571,4778251438881263,650 
Doubtful/Loss————————— 
Total commercial and industrial loans$449,180 $54,547 $24,334 $18,234 $7,013 $11,023 $68,366 $1,200 $633,897 

Construction loans:
Construction risk ratings
Pass$55,041 $45,007 $103,191 $50,972 $20,978 $2,940 $— $— $278,129 
Special Mention— — — 346 — 1,803 — — 2,149 
Substandard— —— — 4,398 257 — — 4,655 
Doubtful/Loss———————— — 
Total construction loans$55,041 $45,007 $103,191 $51,318 $25,376 $5,000 $— $— $284,933 

Agriculture production loans:
Agriculture production risk ratings
Pass$82 $1,680 $1,001 $869 $754 $543 $35,410 $— $40,339 
Special Mention— — — — — — — — — 
Substandard— — — — 18 — 256 — 274 
Doubtful/Loss— — — — — — — — — 
Total agriculture production loans$82 $1,680 $1,001 $869 $772 $543 $35,666 $— $40,613 
Term Loans Amortized Cost Basis by Origination Year – As of September 30, 2020
(in thousands)20202019201820172016PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
Leases:
Lease risk ratings
Pass$3,638 $— $— $— $— $— $— $— $3,638
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful/Loss— — — — — — — —— 
Total leases$3,638 $— $— $— $— $— $— $— $3,638 

Total loans outstanding:
Risk ratings
Pass$868,091 $655,891 $529,877 $547,621 $410,014 $1,037,650 $559,124 $21,998 $4,630,266 
Special Mention9,481 10,739 13,048 16,152 40,738 25,940 29,471 1,774 147,343
Substandard— 3,018 4,301 4,453 9,823 15,021 9,314 2,799 48,729
Doubtful/Loss— — — — — — — — — 
Total loans outstanding$877,572 $669,648 $547,226 $568,226 $460,575 $1,078,611 $597,909 $26,571 $4,826,338 



The following information related to loan originations by vintage are presented for comparison purposes only.

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— — — — — — — —
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 
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:
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 

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 


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 
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 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 

Agriculture production loans:
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 September 30, 2020
(in thousands)30-59 days60-89 days> 90 daysTotal Past
Due Loans		CurrentTotal
Commercial real estate:
CRE non-owner occupied$960 $131 $306 $1,397 $1,598,887 $1,600,284 
CRE owner occupied782 — 421 1,203 579,887 581,090 
Multifamily— — — — 602,199 602,199 
Farmland— — 451 451 152,398 152,849 
Total commercial real estate loans1,742 131 1,178 3,051 2,933,371 2,936,422 
Consumer:
SFR 1-4 1st DT liens434 74 2,005 2,513 509,246 511,759 
SFR HELOCs and junior liens1,205 492 1,440 3,137 329,683 332,820 
Other155 79 190 424 81,832 82,256 
Total consumer loans1,794 645 3,635 6,074 920,761 926,835 
Commercial and industrial365 395 105 865 633,032 633,897 
Construction138 47 17 202 284,731 284,933 
Agriculture production— 330 — 330 40,283 40,613 
Leases— — — — 3,638 3,638 
Total$4,039 $1,548 $4,935 $10,522 $4,815,816 $4,826,338 

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 
Farmland30— — 30145,037145,067
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 September 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$3,010 $3,010 $— $639 $642 $— 
CRE owner occupied3,778 3,778 — 1,411 1,408 — 
Multifamily— — — 2,024 2,024 — 
Farmland2,056 2,056 — 1,242 1,242 — 
Total commercial real estate loans8,844 8,844 — 5,316 5,316 — 
Consumer:
SFR 1-4 1st DT liens6,182 6,351 — 5,023 5,192 — 
SFR HELOCs and junior liens3,974 5,184 — 3,992 4,217 — 
Other80 257 29 4 32 19 
Total consumer loans10,236 11,792 29 9,019 9,441 19 
Commercial and industrial761 1,978 16 476 2,050 — 
Construction— 18 — — — — 
Agriculture production273 286 — 14 38 — 
Leases— — — — 
Sub-total20,11422,9184514,82516,84519
Less: Guaranteed loans(814)(814)— (916)(990)— 
Total, net$19,300 $22,104 $45 $13,909 $15,855 $19 
Interest income on non accrual loans that would have been recognized during the three months ended September 30, 2020 and 2019, if all such loans had been current in accordance with their original terms, totaled $303,000 and $325,000, respectively. Interest income actually recognized on these originated loans during the three months ended September 30, 2020 and 2019 was $187,000 and $151,000, respectively.
Interest income on non accrual loans that would have been recognized during the nine months ended September 30, 2020 and 2019, if all such loans had been current in accordance with their original terms, totaled $1,162,000 and $1,014,000, respectively. Interest income actually recognized on these originated loans during the nine months ended September 30, 2020 and 2019 was $321,000 and $297,000, respectively.
The following tables present the amortized cost basis of collateral dependent loans by class of loans as of the following periods:

As of September 30, 2020
(in thousands)RetailOfficeWarehouseOtherMultifamilyFarmlandSFR -1st DeedSFR -2nd DeedAutomobile/TruckA/R and InventoryEquipmentTotal
Commercial real estate:
CRE non-owner occupied$2,696 $— $— $— $— $— $— $— $— $— $2,696 
CRE owner occupied893 950 1,935 — — — — — — — 3,778 
Multifamily— — — — — — — — — — — 
Farmland— — — — — 2,056 — — — — 2,056 
Total commercial real estate loans3,589 950 1,935 — — 2,056 — — — — — 8,530 
Consumer:
SFR 1-4 1st DT liens— — — — — — 6,135 190 — — — 6,325 
SFR HELOCs and junior liens— — — — — — 1,187 3,024 — — — 4,211 
Other— — — 8 — — — — 229 — — 237 
Total consumer loans— — — 8 — — 7,322 3,214 229 — — 10,773 
Commercial and industrial— — — — — — — — — 1,933 45 1,978 
Construction— — — — — — — — — — — — 
Agriculture production— — — 268 — — — — — 13 5 286 
Leases— — — — — — — — — — 
Total$3,589 $950 $1,935 $276 $— $2,056 $7,322 $3,214 $229 $1,946 $50 $21,567 

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 September 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 $319 $314 $314 1 $141 $— 
CRE owner occupied5 2,422 2,341 67 2 1,401 — 
Multifamily— — — — — — — 
Farmland— — — — — — — 
Total commercial real estate loans6 2,741 2,655 381 3 1,542 — 
Consumer:
SFR 1-4 1st DT liens— — — — — — — 
SFR HELOCs and junior liens— — — — 1 143 — 
Other— — — — — — — 
Total consumer loans— — — — 1 143 — 
Commercial and industrial— — — — — — — 
Construction— — — — — — — 
Agriculture production— — — — — — — 
Leases— — — — — — — 
Total6 $2,741 $2,655 $381 4 $1,685 $— 


TDR information for the three months ended September 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 occupied2 $60 $67 $— — $— $— 
CRE owner occupied— — — — — — — 
Multifamily— — — — — — — 
Farmland— — — — — — — 
Total commercial real estate loans2 60 67 — — — — 
Consumer:
SFR 1-4 1st DT liens2 496 500 28 — — — 
SFR HELOCs and junior liens— — — — — — — 
Other— — — — — — — 
Total consumer loans2 496 500 28 — 
Commercial and industrial4 150 148 — — — — 
Construction— — — — — — — 
Agriculture production— — — — — — — 
Leases— — — — — — — 
Total8 $706 $715 $28 — — $— 
TDR Information for the nine months ended September 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 occupied2 $576 $565 $314 1 $141 $— 
CRE owner occupied5 2,422 2,341 67 2 1,401 — 
Multifamily— — — — — — — 
Farmland2 229 298 — — — — 
Total commercial real estate loans9 3,227 3,204 381 3 1,542 — 
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 industrial— — — — — — — 
Construction1 21 20 21 — — — 
Total12 $3,420 $3,393 $402 5 $2,579 $— 

TDR Information for the nine months ended September 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 occupied2 $60 $67 $— — $— $— 
CRE owner occupied— — — — — — — 
Multifamily— — — — — — — 
Farmland— — — — — — — 
Total commercial real estate loans2 60 67 — — — — 
Consumer:
SFR 1-4 1st DT liens3 659 662 30 — — — 
SFR HELOCs and junior liens3 214 215 29 — — — 
Other— — — — — — — 
Total consumer loans6 873 877 59 — — — 
Commercial and industrial10 1,918 1,885 — 1 7 — 
Construction— — — — — — — 
Total18 $2,851 $2,829 $59 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.