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Allowance for Credit Losses
 3 Months Ended
Mar. 31, 2021
Allowance For Loan And Lease Losses [Abstract]  
Allowance for Credit Losses Allowance for Credit Losses
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 credit losses – Three months ended March 31, 2021
(in thousands)Beginning
Balance		Charge-offsRecoveriesProvision (benefit)Ending 
Balance
Commercial real estate:
CRE non-owner occupied$29,380 $— $2 $(2,948)$26,434 
CRE owner occupied10,861 — 1 (988)9,874 
Multifamily11,472 — — 899 12,371 
Farmland1,980 — — (256)1,724 
Total commercial real estate loans53,693 — 3 (3,293)50,403 
Consumer:
SFR 1-4 1st DT liens10,117 — 10 538 10,665 
SFR HELOCs and junior liens11,771 — 285 (977)11,079 
Other3,260 (193)106 (313)2,860 
Total consumer loans25,148 (193)401 (752)24,604 
Commercial and industrial4,252 (33)136 109 4,464 
Construction7,540 — — (2,064)5,476 
Agriculture production1,209 — 20 (241)988 
Leases5 — — 1 6 
Allowance for credit losses on loans91,847 (226)560 (6,240)85,941 
Reserve for unfunded commitments3,400 — — 180 3,580 
Total$95,247 $(226)$560 $(6,060)$89,521 

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.

The Company utilizes a reasonable and supportable forecast period of approximately eight quarters and obtains the forecast data from publicly available sources. The Company also considers 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 March 31, 2021, the majority of the change in ACL during the period is primarily attributed to portfolio-wide qualitative indicators related to forecasted changes in the US Unemployment outlook and concentration risk. The aggregate change in these qualitative factors during the three months ended March 31, 2021 were $5,435,000. Further, quantitative calculations decreases based on historical loss experience further reduced required credit reserves by $471,000 as of March 31, 2021. Management noted that the majority of economic forecasts utilized in the ACL calculation have recent estimates that forecast the U.S. economy rebounding to pre-pandemic levels during 2021. These forecasts remain cautious as a result of; lingering supply chain interruptions caused by an imbalance in supply and demand, logistical and transportation issues, and resurgences in COVID variants in certain nations worldwide. Management believes that the allowance for credit losses at March 31, 2021 appropriately reflected expected credit losses inherent in the loan portfolio at that date.
Allowance for credit losses – Year ended December 31, 2020
(in thousands)Beginning
Balance		Adoption of CECLCharge-offsRecoveriesProvision
(benefit)		Ending Balance
Commercial real estate:
CRE non-owner occupied$5,948 $6,701 $— $198 $16,533 $29,380 
CRE owner occupied2,027 2,281 — 28 6,525 10,861 
Multifamily3,352 2,281 — — 5,839 11,472 
Farmland668585 (182)— 9091,980 
Total commercial real estate loans11,995 11,848 (182)226 29,806 53,693 
Consumer:
SFR 1-4 1st DT liens2,306 2,675 (13)416 4,733 10,117 
SFR HELOCs and junior liens6,183 4,638 (116)304 762 11,771 
Other1,595 971 (670)347 1,017 3,260 
Total consumer loans10,084 8,284 (799)1,067 6,512 25,148 
Commercial and industrial4,867 (1,961)(774)568 1,552 4,252 
Construction3,388 933 — — 3,219 7,540 
Agriculture production261 (179)— 24 1,103 1,209 
Leases21 (12)— — (4)5 
Allowance for credit losses on loans30,616 18,913 (1,755)1,885 42,188 91,847 
Reserve for unfunded commitments2,775 — — — 625 3,400 
Total$33,391 $18,913 $(1,755)$1,885 $42,813 $95,247 

On January 1, 2020, the Company adopted ASU 2016-03 Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the incurred loss methodology that is referred to as the current expected credit loss (CECL) methodology. The Company recognized an increase in the ACL for loans totaling $18,913,000, including a reclassification of $481,000 from discounts on acquired loans to the allowance for credit losses, as a cumulative effect adjustment from change in accounting policies, with a corresponding decrease in retained earnings, net of $5,449,000 in taxes of $12,983,000.

Allowance for loan losses – Three months ended March 31, 2020
(in thousands)Beginning
Balance		Adoption of CECLCharge-offsRecoveriesProvision
(benefit)		Ending Balance
Commercial real estate:
CRE non-owner occupied$5,948 $6,701 $— $189 $5,195 $18,033 
CRE owner occupied2,027 2,281 — 5 1,052 5,365 
Multifamily3,352 2,281 — — (493)5,140 
Farmland668 585 — — (541)712 
Total commercial real estate loans11,995 11,848 — 194 5,213 29,250 
Consumer:
SFR 1-4 1st DT liens2,306 2,675 — 410 259 5,650 
SFR HELOCs and junior liens6,183 4,638 — 48 327 11,196 
Other1,595 971 (130)94 216 2,746 
Total consumer loans10,084 8,284 (130)552 802 19,592 
Commercial and industrial4,867 (1,961)(380)126 1,216 3,868 
Construction3,388 933 — — 274 4,595 
Agriculture production261 (179)— 20 493 595 
Leases21 (12)— — 2 11 
Allowance for credit losses on loans30,616 18,913 (510)892 8,000 57,911 
Reserve for unfunded commitments2,775 — — — — 2,775 
Total$33,391 $18,913 $(510)$892 $8,000 $60,686 
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 March 31, 2021
(in thousands)20212020201920182017PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
Commercial real estate:
CRE non-owner occupied risk ratings
Pass$58,047 $130,667 $205,818 $147,766 $252,414 $620,082 $65,028 $— $1,479,822 
Special Mention— — 6,226 11,683 12,245 19,053 12,001 —61,208 
Substandard— — — 1,432 577 11,888 — —13,897 
Doubtful/Loss— — — — — — — — — 
Total CRE non-owner occupied risk ratings$58,047 $130,667 $212,044 $160,881 $265,236 $651,023 $77,029 $— $1,554,927 
Term Loans Amortized Cost Basis by Origination Year – As of March 31, 2021
(in thousands)20212020201920182017PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
Commercial real estate:
CRE owner occupied risk ratings
Pass$36,465 $104,653 $73,669 $52,367 $57,770 $270,655 $22,402 $— $617,981 
Special Mention— — — 288 7,171 8,916 — — 16,375 
Substandard— — 1,505 1,282 470 3,603 — — 6,860 
Doubtful/Loss— — — — — — — — — 
Total CRE owner occupied risk ratings$36,465 $104,653 $75,174 $53,937 $65,411 $283,174 $22,402 $— $641,216 

Commercial real estate:
Multifamily risk ratings
Pass$121,003 $82,738 $118,173 $118,297 $68,886 $187,843 $20,771 $— $717,711 
Special Mention— 9,383 — — — 24,679 8,759 — 42,821 
Substandard— — 4,352 — — — — — 4,352 
Doubtful/Loss— — — — — — — — — 
Total multifamily loans$121,003 $92,121 $122,525 $118,297 $68,886 $212,522 $29,530 $— $764,884 

Commercial real estate:
Farmland risk ratings
Pass$4,669 $18,083 $22,496 $18,659 $8,467 $23,026 $38,076 $— $133,476 
Special Mention— — — — 1,196 3,316 1,653 — 6,165 
Substandard— — 3,266 — 596 1,144 2,950 — 7,956 
Doubtful/Loss— — — — — — — — — 
Total farmland loans$4,669 $18,083 $25,762 $18,659 $10,259 $27,486 $42,679 $— $147,597 

Consumer loans:
SFR 1-4 1st DT liens risk ratings
Pass$125,704 $186,594 $72,632 $33,274 $47,410 $152,614 $— $5,039 $623,267 
Special Mention——2896824212,803—1,0735,268
Substandard———1,1516806,096—3628,289
Doubtful/Loss—————————
Total SFR 1st DT liens$125,704 $186,594 $72,921 $35,107 $48,511 $161,513 $— $6,474 $636,824 


Consumer loans:
SFR HELOCs and Junior Liens
Pass$700 $85 $— $12 $343 $958 $303,290 $12,920 $318,308 
Special Mention———16—1394,2547855,194
Substandard—————336,1461,6527,831
Doubtful/Loss—————————
Total SFR HELOCs and Junior Liens$700 $85 $— $28 $343 $1,130 $313,690 $15,357 $331,333 
Term Loans Amortized Cost Basis by Origination Year – As of March 31, 2021
(in thousands)20212020201920182017PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
Consumer loans:
Other risk ratings
Pass$5,880 $21,727 $26,153 $12,095 $3,472 $1,632 $889 $— $71,848 
Special Mention— 55 202 249 36 78 77 — 697 
Substandard— 57 79 134 85 147 9 — 511 
Doubtful/Loss— — — — — — — — — 
Total other consumer loans$5,880 $21,839 $26,434 $12,478 $3,593 $1,857 $975 $— $73,056 

Commercial and industrial loans:
Commercial and industrial risk ratings
Pass$177,482 $216,547 $44,666 $17,226 $11,974 $12,802 $61,969 $964 $543,630 
Special Mention——966021691762,558103,611 
Substandard——2821041,3758121,188753,836 
Doubtful/Loss————————— 
Total commercial and industrial loans$177,482 $216,547 $45,044 $17,932 $13,518 $13,790 $65,715 $1,049 $551,077 

Construction loans:
Construction risk ratings
Pass$1,711 $76,063 $44,589 $37,820 $31,303 $23,442 $— $— $214,928 
Special Mention— — — — 346 1,756 — — 2,102 
Substandard— —— — — 4,583 — — 4,583 
Doubtful/Loss———————— — 
Total construction loans$1,711 $76,063 $44,589 $37,820 $31,649 $29,781 $— $— $221,613 

Agriculture production loans:
Agriculture production risk ratings
Pass$262 $897 $1,959 $1,288 $1,582 $1,108 $32,416 $— $39,512 
Special Mention— — — 189 — 47 — — 236 
Substandard— — — — — 5 — — 5 
Doubtful/Loss— — — — — — — — — 
Total agriculture production loans$262 $897 $1,959 $1,477 $1,582 $1,160 $32,416 $— $39,753 

Leases:
Lease risk ratings
Pass$4,697 $— $— $— $— $— $— $— $4,697
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful/Loss— — — — — — — —— 
Total leases$4,697 $— $— $— $— $— $— $— $4,697 
Term Loans Amortized Cost Basis by Origination Year – As of March 31, 2021
(in thousands)20212020201920182017PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
Total loans outstanding:
Risk ratings
Pass$536,620 $838,054 $610,155 $438,804 $483,621 $1,294,162 $544,841 $18,923 $4,765,180 
Special Mention— 9,438 6,813 13,709 21,584 60,963 29,302 1,868 143,677
Substandard— 57 9,484 4,103 3,783 28,311 10,293 2,089 58,120
Doubtful/Loss— — — — — — — — — 
Total loans outstanding$536,620 $847,549 $626,452 $456,616 $508,988 $1,383,436 $584,436 $22,880 $4,966,977 


Term Loans Amortized Cost Basis by Origination Year – As of December 31, 2020
(in thousands)20202019201820172016PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
Commercial real estate:
CRE non-owner occupied risk ratings
Pass$120,520 $207,899 $155,730 $256,677 $179,523 $460,644 $76,730 $— $1,457,723 
Special Mention— 7,455 11,692 5,407 15,773 18,832 12,205 — 71,364 
Substandard— — 1,449 584 2,147 2,288 — — 6,468
Doubtful/Loss— — — — — — — — — 
Total CRE non-owner occupied risk ratings$120,520 $215,354 $168,871 $262,668 $197,443 $481,764 $88,935 $— $1,535,555 

Commercial real estate:
CRE owner occupied risk ratings
Pass$105,896 $75,144 $53,816 $58,371 $54,541 $227,828 $25,508 $— $601,104 
Special Mention— — 288 7,451 2,955 6,140 — — 16,834 
Substandard— 1,533 1,301 475 1,306 1,822 — — 6,437 
Doubtful/Loss————————— 
Total CRE owner occupied risk ratings$105,896 $76,677 $55,405 $66,297 $58,802 $235,790 $25,508 $— $624,375 

Commercial real estate:
Multifamily risk ratings
Pass$77,646 $118,725 $113,882 $70,112 $67,457 $123,518 $19,007 $— $590,347 
Special Mention9,441 — — 603 24,687 772 9,259 — 44,762 
Substandard— 4,371 — — — — — — — 4,371 
Doubtful/Loss————————— 
Total multifamily loans$87,087 $123,096 $113,882 $70,715 $92,144 $124,290 $28,266 $— $639,480 
Term Loans Amortized Cost Basis by Origination Year – As of December 31, 2020
(in thousands)20202019201820172016PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
Commercial real estate:
Farmland risk ratings
Pass$17,640 $25,003 $19,148 $12,834 $7,377 $17,129 $39,411 $— $138,542 
Special Mention—2,567—1,2712273,1072,258—9,430 
Substandard—700—602—1,2142,004—4,520 
Doubtful/Loss————————— 
Total farmland loans$17,640 $28,270 $19,148 $14,707 $7,604 $21,450 $43,673 $— $152,492 

Consumer loans:
SFR 1-4 1st DT liens risk ratings
Pass$183,719 $80,717 $36,342 $53,001 $46,467 $126,465 $76 $5,507 $532,294 
Special Mention— 290 684 110 15 2,936 — 934 4,969 
Substandard— — 1,174 929 935 5,763 — 528 9,329 
Doubtful/Loss— — — — — — — — — 
Total SFR 1st DT liens$183,719 $81,007 $38,200 $54,040 $47,417 $135,164 $76 $6,969 $546,592 

Consumer loans:
SFR HELOCs and Junior Liens
Pass$793 $— $13 $360 $300 $910 $297,160 $14,051 $313,587 
Special Mention— — 16 — — 83 4,504 789 5,392 
Substandard— — — — — 39 6,698 1,768 8,505 
Doubtful/Loss— — — — — — — — — 
Total SFR HELOCs and Junior Liens$793 $— $29 $360 $300 $1,032 $308,362 $16,608 $327,484 


Consumer loans:
Other risk ratings
Pass$25,876 $29,539 $14,170 $4,238 $1,020 $967 $986 $— $76,796 
Special Mention43 208 147 74 24 65 90 — 651 
Substandard58 82 210 74 12 140 9 — 585 
Doubtful/Loss— — — — — — — — — 
Total other consumer loans$25,977 $29,829 $14,527 $4,386 $1,056 $1,172 $1,085 $— $78,032 


Commercial and industrial loans:
Commercial and industrial risk ratings
Pass$356,701 $48,838 $20,463 $13,151 $5,185 $9,490 $65,938 $1,085 $520,851 
Special Mention— 102 698 195 20 178 207 11 1,411 
Substandard— 301 53 1,142 823 148 1,519 79 4,065 
Doubtful/Loss— — — — — — — — — 
Total commercial and industrial loans$356,701 $49,241 $21,214 $14,488 $6,028 $9,816 $67,664 $1,175 $526,327 
Term Loans Amortized Cost Basis by Origination Year – As of December 31, 2020
(in thousands)20202019201820172016PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
Construction loans:
Construction risk ratings
Pass69,13341,78692,19151,08220,8682,876— $— $277,936 
Special Mention———346—1,780— — 2,126 
Substandard————4,529251— — 4,780 
Doubtful/Loss——————— — — 
Total construction loans$69,133 $41,786 $92,191 $51,428 $25,397 $4,907 $— $— $284,842 

Agriculture production loans:
Agriculture production risk ratings
Pass$977 $2,079 $1,590 $1,838 $663 $708 $36,051 $— $43,906 
Special Mention— — 203 — 49 — — — 252 
Substandard— — — — 6 — — — 6 
Doubtful/Loss— — — — — — — — — 
Total agriculture production loans$977 $2,079 $1,793 $1,838 $718 $708 $36,051 $— $44,164 

Leases:
Lease risk ratings
Pass$3,784 $— $— $— $— $— $— $— $3,784 
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful/Loss— — — — — — — — — 
Total leases$3,784 $— $— $— $— $— $— $— $3,784 

Total loans outstanding:
Risk ratings
Pass$962,685 $629,730 $507,345 $521,664 $383,401 $970,535 $560,867 $20,643 $4,556,870 
Special Mention9,484 10,622 13,728 15,457 43,750 33,893 28,523 1,734 157,191 
Substandard58 6,987 4,187 3,806 9,758 11,665 10,230 2,375 49,066 
Doubtful/Loss— — — — — — — — — 
Total loans outstanding$972,227 $647,339 $525,260 $540,927 $436,909 $1,016,093 $599,620 $24,752 $4,763,127 
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 March 31, 2021
(in thousands)30-59 days60-89 days> 90 daysTotal Past
Due Loans		CurrentTotal
Commercial real estate:
CRE non-owner occupied$55 $354 $4,110 $4,519 $1,550,408 $1,554,927 
CRE owner occupied158 — 589 747 640,469 641,216 
Multifamily— — — — 764,884 764,884 
Farmland— — 847 847 146,750 147,597 
Total commercial real estate loans213 354 5,546 6,113 3,102,511 3,108,624 
Consumer:
SFR 1-4 1st DT liens— — 881 881 635,943 636,824 
SFR HELOCs and junior liens59 490 1,472 2,021 329,312 331,333 
Other66 13 31 110 72,946 73,056 
Total consumer loans125 503 2,384 3,012 1,038,201 1,041,213 
Commercial and industrial152 168 771 1,091 549,986 551,077 
Construction295 — — 295 221,318 221,613 
Agriculture production39 — — 39 39,714 39,753 
Leases— — — — 4,697 4,697 
Total$824 $1,025 $8,701 $10,550 $4,956,427 $4,966,977 

Analysis of Past Due Loans - As of December 31, 2020
(in thousands)30-59 days60-89 days> 90 daysTotal Past
Due Loans		CurrentTotal
Commercial real estate:
CRE non-owner occupied$127 $173 $239 $539 $1,535,016 $1,535,555 
CRE owner occupied297 824 1,121 623,254 624,375 
Multifamily— — — — 639,480 639,480 
Farmland899— 70 969151,523152,492
Total commercial real estate loans1,323 173 1,133 2,629 2,949,273 2,951,902 
Consumer:
SFR 1-4 1st DT liens37 — 960 997 545,595 546,592 
SFR HELOCs and junior liens418 212 1,671 2,301 325,183 327,484 
Other41 13 100 154 77,878 78,032 
Total consumer loans4962252,7313,452948,656952,108
Commercial and industrial155 426 105 686 525,641 526,327 
Construction— — — — 284,842 284,842 
Agriculture production— — — — 44,164 44,164 
Leases— — — — 3,784 3,784 
Total$1,974 $824 $3,969 $6,767 $4,756,360 $4,763,127 
The following table shows the ending balance of non accrual loans by loan category as of the date indicated:
Non Accrual Loans
As of March 31, 2021As of December 31, 2020
(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$7,000 $7,000 $— $3,110 $3,110 $— 
CRE owner occupied2,833 3,762 — 3,111 4,061 — 
Multifamily— — — — — — 
Farmland1,431 1,431 — 1,468 1,538 — 
Total commercial real estate loans11,264 12,193 — 7,689 8,709 — 
Consumer:
SFR 1-4 1st DT liens4,853 4,996 — 4,950 5,093 — 
SFR HELOCs and junior liens4,187 5,142 — 4,480 6,148 — 
Other52 103 — 68 167 — 
Total consumer loans9,092 10,241 — 9,498 11,408 — 
Commercial and industrial108 1,774 245 652 2,183 — 
Construction4,483 4,483 — 4,546 4,546 — 
Agriculture production5 5 — 5 18 — 
Leases— — — — — — 
Sub-total24,95228,69624522,39026,864—
Less: Guaranteed loans(814)(814)— (687)(811)
Total, net$24,138 $27,882 $245 $21,703 $26,053 $— 
Interest income on non accrual loans that would have been recognized during the three months ended March 31, 2021 and 2020, if all such loans had been current in accordance with their original terms, totaled $536,000 and $431,000, respectively. Interest income actually recognized on these originated loans during the three months ended March 31, 2021 and 2020 was $17,000 and $47,000, respectively.
The following tables present the amortized cost basis of collateral dependent loans by class of loans as of the following periods:

As of March 31, 2021
(in thousands)RetailOfficeWarehouseOtherMultifamilyFarmlandSFR -1st DeedSFR -2nd DeedAutomobile/TruckA/R and InventoryEquipmentTotal
Commercial real estate:
CRE non-owner occupied$2,630 $427 $— $3,943 $— $— $— $— $— $— $— $7,000 
CRE owner occupied781 927 1,640 414 — — — — — — — 3,762 
Multifamily— — — — — — — — — — — — 
Farmland— — — — — 1,431 — — — — — 1,431 
Total commercial real estate loans3,411 1,354 1,640 4,357 — 1,431 — — — — — 12,193 
Consumer:
SFR 1-4 1st DT liens— — — — — — 4,996 — — — — 4,996 
SFR HELOCs and junior liens— — — — — — 1,882 2,471 — — — 4,353 
Other— — — 69 — — — — 25 — — 94 
Total consumer loans— — — 69 — — 6,878 2,471 25 — — 9,443 
Commercial and industrial— — — 272 — — — — — 1,288 214 1,774 
Construction— — — — — — 4,483 — — — — 4,483 
Agriculture production— — — — — — — — — — 5 5 
Leases— — — — — — — — — — — — 
Total$3,411 $1,354 $1,640 $4,698 $— $1,431 $11,361 $2,471 $25 $1,288 $219 $27,898 

As of December 31, 2020
(in thousands)RetailOfficeWarehouseOtherMultifamilyFarmlandSFR -1st DeedSFR -2nd DeedAutomobile/TruckA/R and InventoryEquipmentTotal
Commercial real estate:
CRE non-owner occupied$2,445 $435 $— $— $— $— $— $— $— $— $— $2,880 
CRE owner occupied796 1,176 1,668 — — — — — — — — 3,640 
Multifamily— — — — — — — — — — — — 
Farmland— — — — — —1,538 — — — — — 1,538 
Total commercial real estate loans3,241 1,611 1,668 — — 1,538 — — — — — 8,058 
Consumer:
SFR 1-4 1st DT liens— — — — — — 5,068 — — — — 5,068 
SFR HELOCs and junior liens— — — — — — 1,855 2,839 — — — 4,694 
Other— — — 42 — — — — 97 — — 139 
Total consumer loans— — — 42 — — 6,923 2,839 97 — — 9,901 
Commercial and industrial— — — 292 — — — — — 1,173 75 1,540 
Construction— — — — — — 4,547 — — — — 4,547 
Agriculture production— — — — — — — — — 13 5 18 
Leases— — — — — — — — — — — — 
Total$3,241 $1,611 $1,668 $334 $— $1,538 $11,470 $2,839 $97 $1,186 $80 $24,064 
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 March 31, 2021
(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 $317 $314 $314 — $— $— 
CRE owner occupied1 740 742 742 — — — 
Multifamily— — — — — — — 
Farmland— — — — 3 847 — 
Total commercial real estate loans2 1,057 1,056 1,056 3 847 — 
Consumer:
SFR 1-4 1st DT liens— — — — — — — 
SFR HELOCs and junior liens— — — — — — — 
Other— — — — — — — 
Total consumer loans— — — — — — — 
Commercial and industrial3 316 310 310 1 247 — 
Construction— — — — — — — 
Agriculture production— — — — — — — 
Leases— — — — — — — 
Total5 $1,373 $1,366 $1,366 4 $1,094 $— 


TDR information for the three months ended March 31, 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— — — — 1 302 — 
SFR HELOCs and junior liens2 172 169 — — — — 
Other— — — — — — — 
Total consumer loans2 172 169 — 1 302 — 
Commercial and industrial1 21 20 21 — — — 
Construction— — — — — — — 
Agriculture production— — — — — — — 
Leases— — — — — — — 
Total6 $680 $738 $21 1 $302 $— 
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.