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 September 30, 2022
(in thousands)	Beginning Balance		Charge-offs		Recoveries		Provision (benefit)		Ending Balance
Commercial real estate:
CRE non-owner occupied	$	28,081	$	—	$	1	$	1,162	$	29,244
CRE owner occupied	12,620		—		1		904		13,525
Multifamily	11,795		—		—		954		12,749
Farmland	2,954		—		—		168		3,122
Total commercial real estate loans	55,450		—		2		3,188		58,640
Consumer:
SFR 1-4 1st DT liens	10,311		—		38		322		10,671
SFR HELOCs and junior liens	11,591		—		98		(306)		11,383
Other	2,029		(185)		53		(19)		1,878
Total consumer loans	23,931		(185)		189		(3)		23,932
Commercial and industrial	9,979		(82)		119		384		10,400
Construction	7,522		—		—		(1,390)		6,132
Agriculture production	1,046		—		1		1,321		2,368
Leases	16		—		—		—		16
Allowance for credit losses on loans	$	97,944	$	(267)	$	311	$	3,500	$	101,488
Reserve for unfunded commitments	4,075		—		—		295		4,370
Total	$	102,019	$	(267)	$	311	$	3,795	$	105,858


	Allowance for credit losses – Nine months ended September 30, 2022
(in thousands)	Beginning Balance		ACL on PCD Loans		Charge-offs		Recoveries		Provision (benefit)		Ending Balance
Commercial real estate:
CRE non-owner occupied	$	25,739	$	746	$	—	$	1	$	2,758	$	29,244
CRE owner occupied	10,691		63		—		2		2,769		13,525
Multifamily	12,395		—		—		—		354		12,749
Farmland	2,315		764		(294)		—		337		3,122
Total commercial real estate loans	51,140		1,573		(294)		3		6,218		58,640
Consumer:
SFR 1-4 1st DT liens	10,723		144		—		79		(275)		10,671
SFR HELOCs and junior liens	10,510		—		—		426		447		11,383
Other	2,241		—		(470)		200		(93)		1,878
Total consumer loans	23,474		144		(470)		705		79		23,932
Commercial and industrial	3,862		81		(647)		1,130		5,974		10,400
Construction	5,667		201		—		—		264		6,132
Agriculture production	1,215		38		—		3		1,112		2,368
Leases	18		—		—		—		(2)		16
Allowance for credit losses on loans	$	85,376	$	2,037	$	(1,411)	$	1,841	$	13,645	$	101,488
Reserve for unfunded commitments	3,790		—		—		—		580		4,370
Total	$	89,166	$	2,037	$	(1,411)	$	1,841	$	14,225	$	105,858

The allowance for credit losses (ACL) was $101,488,000 as of September 30, 2022, a net increase of $3,544,000 over the immediately preceding quarter. The provision for credit losses of $3,500,000 during the quarter was the net effect of increases in required reserves due to loan portfolio growth and changes in individually analyzed credits, which increased the provision need by approximately $3,218,000 and $1,356,000, respectively, while net decreases in qualitative factors and improvement in overall portfolio credit quality reduced the provisioning need by approximately $1,030,000. In addition to the aforementioned quarterly increase, the provision for credit losses of $13,645,000 during the nine months ended September 30, 2022 was comprised of $10,820,000 in association with the loans acquired from Valley Republic Bank in the first quarter of 2022, and a net provision for credit losses of $2,825,000 associated with organic loan portfolio growth and the net changes in quantitative and qualitative factors associated with overall borrower performance. Net recoveries for the three and nine months ended September 30, 2022 were approximately $44,000 and $430,000, respectively while during the same three and nine month periods of 2021, the Company recorded $261,000 in net charge-offs and $339,000 in recoveries, respectively.

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 forecast period of approximately eight quarters and obtains the forecast data from publicly available sources as of the balance sheet date. This forecast data continues to evolve and included improving shifts in the magnitude of changes for both the unemployment and GDP factors leading up to the balance sheet date, particularly CA unemployment trends. Inflation remains elevated from continued disruptions in the supply chain and volatile energy prices Despite the expected continued benefit to the net interest income of the Company from the elevated rate environment, Management notes the rapid intervals of rate increases by the Federal Reserve and flattening or inversion of the yield curve, have boosted expectations of the US entering a recession within 12 months and has led to the lowest levels of consumer sentiment in decades. As a result, management continues to believe that certain credit weakness are likely present in the overall economy and that it is appropriate to cautiously maintain a reserve level that incorporates such risk factors.

Purchased loans and leases that reflect a more-than-insignificant deterioration of credit from origination are considered PCD. For PCD loans and leases, the initial estimate of expected credit losses is recognized in the ACL on the date of acquisition using the same methodology as other loans and leases held-for-investment. The following table provides a summary of loans and leases purchased as part of the VRB acquisition with credit deterioration at acquisition:


	As of March 25, 2022
(in thousands)	Commercial Real Estate		Consumer		Commercial and Industrial		Construction		Agriculture Production		Total
Par value	$	27,237	$	3,877	$	2,674	$	25,645	$	9,080	$	68,513
ACL at acquisition	(1,573)		(144)		(81)		(201)		(38)		(2,037)
Non-credit discount	(2,305)		(360)		(47)		(232)		(12)		(2,956)
Purchase price	$	23,359	$	3,373	$	2,546	$	25,212	$	9,030	$	63,520


	Allowance for credit losses – Year ended December 31, 2021
(in thousands)	Beginning Balance		Charge-offs		Recoveries		Provision (benefit)		Ending Balance
Commercial real estate:
CRE non-owner occupied	$	29,380	$	—	$	12	$	(3,653)	$	25,739
CRE owner occupied	10,861		(18)		794		(946)		10,691
Multifamily	11,472		—		—		923		12,395
Farmland	1,980		(126)		—		461		2,315
Total commercial real estate loans	53,693		(144)		806		(3,215)		51,140
Consumer:
SFR 1-4 1st DT liens	10,117		(145)		13		738		10,723
SFR HELOCs and junior liens	11,771		(29)		1,127		(2,359)		10,510
Other	3,260		(577)		361		(803)		2,241
Total consumer loans	25,148		(751)		1,501		(2,424)		23,474
Commercial and industrial	4,252		(1,470)		755		325		3,862
Construction	7,540		(27)		—		(1,846)		5,667
Agriculture production	1,209		—		24		(18)		1,215
Leases	5		—		—		13		18
Allowance for credit losses on loans	$	91,847	$	(2,392)	$	3,086	$	(7,165)	$	85,376
Reserve for unfunded commitments	3,400		—		—		390		3,790
Total	$	95,247	$	(2,392)	$	3,086	$	(6,775)	$	89,166


	Allowance for credit losses – Three months ended September 30, 2021
(in thousands)	Beginning Balance		Charge-offs		Recoveries		Provision		Ending Balance
Commercial real estate:
CRE non-owner occupied	$	26,028	$	—	$	10	$	(817)	$	25,221
CRE owner occupied	10,463		(18)		793		(508)		10,730
Multifamily	13,196		—		—		(320)		12,876
Farmland	1,950		(126)		—		78		1,902
Total commercial real estate loans	51,637		(144)		803		(1,567)		50,729
Consumer:
SFR 1-4 1st DT liens	10,629		(145)		1		133		10,618
SFR HELOCs and junior liens	10,701		—		63		(333)		10,431
Other	2,620		(181)		97		(94)		2,442
Total consumer loans	23,950		(326)		161		(294)		23,491
Commercial and industrial	4,511		(1,112)		355		(327)		3,427
Construction	4,951		—		—		577		5,528
Agriculture production	1,007		—		2		110		1,119
Leases	6		—		—		6		12
Allowance for credit losses on loans	$	86,062	$	(1,582)	$	1,321	$	(1,495)	$	84,306
Reserve for unfunded commitments	3,465		—		—		60		3,525
Total	$	89,527	$	(1,582)	$	1,321	$	(1,435)	$	87,831


	Allowance for credit losses – Nine months ended September 30, 2021
(in thousands)	Beginning Balance		Charge-offs		Recoveries		Provision		Ending Balance
Commercial real estate:
CRE non-owner occupied	$	29,380	$	—	$	12	$	(4,171)	$	25,221
CRE owner occupied	10,861		(18)		794		(907)		10,730
Multifamily	11,472		—		—		1,404		12,876
Farmland	1,980		(126)		—		48		1,902
Total commercial real estate loans	53,693		(144)		806		(3,626)		50,729
Consumer:
SFR 1-4 1st DT liens	10,117		(145)		12		634		10,618
SFR HELOCs and junior liens	11,771		—		860		(2,200)		10,431
Other	3,260		(460)		262		(620)		2,442
Total consumer loans	25,148		(605)		1,134		(2,186)		23,491
Commercial and industrial	4,252		(1,446)		570		51		3,427
Construction	7,540		—		—		(2,012)		5,528
Agriculture production	1,209		—		24		(114)		1,119
Leases	5		—		—		7		12
Allowance for credit losses on loans	91,847		(2,195)		2,534		(7,880)		84,306
Reserve for unfunded commitments	3,400		—		—		125		3,525
Total	$	95,247	$	(2,195)	$	2,534	$	(7,755)	$	87,831

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.

•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.


	Term Loans Amortized Cost Basis by Origination Year – As of September 30, 2022
(in thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Commercial real estate:
CRE non-owner occupied risk ratings
Pass	$	314,435	$	309,032	$	151,529	$	225,181	$	152,544	$	761,494	$	108,941	$	—	$	2,023,156
Special Mention	—		—		—		8,650		—		22,079		1,345		—		32,074
Substandard	—		900		792		—		1,066		4,418		—		—		7,176
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total CRE non-owner occupied risk ratings	$	314,435	$	309,932	$	152,321	$	233,831	$	153,610	$	787,991	$	110,286	$	—	$	2,062,406




Commercial real estate:
CRE owner occupied risk ratings
Pass	$	187,346	$	193,426	$	132,676	$	69,125	$	50,770	$	267,391	$	34,869	$	—	$	935,603
Special Mention	—		16,904		236		—		—		7,217		—		—		24,357
Substandard	3,230		723		—		117		1,130		3,326		1,102		—		9,628
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total CRE owner occupied risk ratings	$	190,576	$	211,053	$	132,912	$	69,242	$	51,900	$	277,934	$	35,971	$	—	$	969,588


Commercial real estate:
Multifamily risk ratings
Pass	$	153,679	$	285,798	$	97,578	$	88,771	$	105,714	$	165,961	$	29,924	$	—	$	927,425
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		132		—		—		132
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total multifamily loans	$	153,679	$	285,798	$	97,578	$	88,771	$	105,714	$	166,093	$	29,924	$	—	$	927,557


Commercial real estate:
Farmland risk ratings
Pass	$	43,021	$	53,913	$	16,940	$	23,810	$	13,611	$	39,521	$	49,444	$	—	$	240,260
Special Mention	2,284		777		239		—		—		1,433		21,431		—		26,164
Substandard	—		—		335		1,520		3,155		7,026		919		—		12,955
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total farmland loans	$	45,305	$	54,690	$	17,514	$	25,330	$	16,766	$	47,980	$	71,794	$	—	$	279,379


Consumer loans:
SFR 1-4 1st DT liens risk ratings
Pass	$	154,671	$	269,240	$	136,710	$	33,821	$	30,232	$	122,402	$	10	$	3,242	$	750,328
Special Mention	—		—		—		283		3,297		3,708		—		441		7,729
Substandard	—		1,209		—		—		1,025		4,123		—		615		6,972
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total SFR 1st DT liens	$	154,671	$	270,449	$	136,710	$	34,104	$	34,554	$	130,233	$	10	$	4,298	$	765,029


	Term Loans Amortized Cost Basis by Origination Year – As of September 30, 2022
(in thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Consumer loans:
SFR HELOCs and Junior Liens
Pass	$	420	$	—	$	—	$	—	$	—	$	136	$	378,609	$	8,522	$	387,687
Special Mention	—		—		—		—		—		—		1,783		82		1,865
Substandard	—		—		—		—		—		—		3,814		770		4,584
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total SFR HELOCs and Junior Liens	$	420	$	—	$	—	$	—	$	—	$	136	$	384,206	$	9,374	$	394,136




Consumer loans:
Other risk ratings
Pass	$	11,538	$	13,996	$	11,175	$	11,977	$	5,657	$	2,118	$	873	$	—	$	57,334
Special Mention	2		4		104		143		184		113		43		—		593
Substandard	—		—		42		43		1		96		23		—		205
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total other consumer loans	$	11,540	$	14,000	$	11,321	$	12,163	$	5,842	$	2,327	$	939	$	—	$	58,132


Commercial and industrial loans:
Commercial and industrial risk ratings
Pass	$	115,676	$	68,377	$	25,530	$	25,839	$	9,157	$	7,005	$	260,876	$	761	$	513,221
Special Mention	3,354		150		22		1,590		169		29		14,374		—		19,688
Substandard	—		24		—		—		35		710		1,180		102		2,051
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total commercial and industrial loans	$	119,030	$	68,551	$	25,552	$	27,429	$	9,361	$	7,744	$	276,430	$	863	$	534,960


Construction loans:
Construction risk ratings
Pass	$	43,353	$	85,108	$	52,726	$	42,886	$	2,642	$	5,186	$	—	$	—	$	231,901
Special Mention	—		—		—		11,455		—		—		—		—		11,455
Substandard	—		—		—		84		—		131		—		—		215
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total construction loans	$	43,353	$	85,108	$	52,726	$	54,425	$	2,642	$	5,317	$	—	$	—	$	243,571


Agriculture production loans:
Agriculture production risk ratings
Pass	$	1,837	$	2,635	$	1,288	$	1,204	$	8,947	$	1,181	$	41,865	$	—	$	58,957
Special Mention	—		—		—		—		104		33		2,211		—		2,348
Substandard	—		—		1,804		—		—		—		8,490		—		10,294
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total agriculture production loans	$	1,837	$	2,635	$	3,092	$	1,204	$	9,051	$	1,214	$	52,566	$	—	$	71,599


	Term Loans Amortized Cost Basis by Origination Year – As of September 30, 2022
(in thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Leases:
Lease risk ratings
Pass	$	7,933	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$7,933
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total leases	$	7,933	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	7,933




Total loans outstanding:
Risk ratings
Pass	$	1,033,909	$	1,281,525	$	626,152	$	522,614	$	379,274	$	1,372,395	$	905,411	$	12,525	$	6,133,805
Special Mention	5,640		17,835		601		22,121		3,754		34,612		41,187		523		126,273
Substandard	3,230		2,856		2,973		1,764		6,412		19,962		15,528		1,487		54,212
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total loans outstanding	$	1,042,779	$	1,302,216	$	629,726	$	546,499	$	389,440	$	1,426,969	$	962,126	$	14,535	$	6,314,290


	Term Loans Amortized Cost Basis by Origination Year – As of December 31, 2021
(in thousands)	2021		2020		2019		2018		2016		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Commercial real estate:
CRE non-owner occupied risk ratings
Pass	$	275,305	$	127,299	$	199,764	$	133,046	$	224,581	$	543,430	$	49,899	$	—	$	1,553,324
Special Mention	—		—		8,386		399		4,390		20,612		1,732		—		35,519
Substandard	—		—		—		1,382		739		12,177		—		—		14,298
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total CRE non-owner occupied risk ratings	$	275,305	$	127,299	$	208,150	$	134,827	$	229,710	$	576,219	$	51,631	$	—	$	1,603,141


Commercial real estate:
CRE owner occupied risk ratings
Pass	$	178,092	$	104,571	$	63,979	$	48,721	$	55,399	$	203,431	$	22,745	$	—	$	676,938
Special Mention	15,515		—		—		289		2,964		3,833		—		—		22,601
Substandard	—		—		858		1,214		455		4,241		—		—		6,768
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total CRE owner occupied risk ratings	$	193,607	$	104,571	$	64,837	$	50,224	$	58,818	$	211,505	$	22,745	$	—	$	706,307


Commercial real estate:
Multifamily risk ratings
Pass	$	278,942	$	100,752	$	71,822	$	109,374	$	85,932	$	146,984	$	25,236	$	—	$	819,042
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		4,305		—		—		153		—		—		4,458
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total multifamily loans	$	278,942	$	100,752	$	76,127	$	109,374	$	85,932	$	147,137	$	25,236	$	—	$	823,500


Commercial real estate:
Farmland risk ratings
Pass	$	43,601	$	17,399	$	20,223	$	15,119	$	9,129	$	18,455	$	37,612	$	—	$	161,538
Special Mention	—		—		—		—		1,197		2,519		1,491		—		5,207
Substandard	—		—		2,895		—		578		1,371		1,517		—		6,361
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total farmland loans	$	43,601	$	17,399	$	23,118	$	15,119	$	10,904	$	22,345	$	40,620	$	—	$	173,106


Consumer loans:
SFR 1-4 1st DT liens risk ratings
Pass	$	268,743	$	159,860	$	40,661	$	30,880	$	36,197	$	113,519	$	—	$	3,527	$	653,387
Special Mention	—		—		286		3,282		416		1,476		—		383		5,843
Substandard	1,103		—		—		1,089		256		4,758		—		524		7,730
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total SFR 1st DT liens	$	269,846	$	159,860	$	40,947	$	35,251	$	36,869	$	119,753	$	—	$	4,434	$	666,960


	Term Loans Amortized Cost Basis by Origination Year – As of December 31, 2021
(in thousands)	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Consumer loans:
SFR HELOCs and Junior Liens
Pass	$	494	$	—	$	—	$	—	$	—	$	185	$	317,381	$	9,675	$	327,735
Special Mention	—		—		—		—		—		53		3,655		832		4,540
Substandard	—		—		—		—		—		2		4,164		1,072		5,238
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total SFR HELOCs and Junior Liens	$	494	$	—	$	—	$	—	$	—	$	240	$	325,200	$	11,579	$	337,513


Consumer loans:
Other risk ratings
Pass	$	20,920	$	15,939	$	17,316	$	8,016	$	2,137	$	1,079	$	612	$	—	$	66,019
Special Mention	—		46		157		233		98		51		69		—		654
Substandard	—		53		96		94		67		85		10		—		405
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total other consumer loans	$	20,920	$	16,038	$	17,569	$	8,343	$	2,302	$	1,215	$	691	$	—	$	67,078


Commercial and industrial loans:
Commercial and industrial risk ratings
Pass	$	92,972	$	17,933	$	27,335	$	11,335	$	6,355	$	6,774	$	89,358	$	860	$	252,922
Special Mention	—		2,417		69		152		71		80		116		—		2,905
Substandard	—		—		146		152		804		414		1,832		180		3,528
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total commercial and industrial loans	$	92,972	$	20,350	$	27,550	$	11,639	$	7,230	$	7,268	$	91,306	$	1,040	$	259,355


Construction loans:
Construction risk ratings
Pass	$	66,318	$	79,567	$	58,383	$	4,849	$	1,716	$	8,148	$	—	$	—	$	218,981
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	2,675		472		—		—		—		153		—		—		3,300
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total construction loans	$	68,993	$	80,039	$	58,383	$	4,849	$	1,716	$	8,301	$	—	$	—	$	222,281


Agriculture production loans:
Agriculture production risk ratings
Pass	$	2,068	$	878	$	1,393	$	801	$	940	$	853	$	43,686	$	—	$	50,619
Special Mention	—		—		—		150		—		42		—		—		192
Substandard	—		—		—		—		—		—		—		—		—
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total agriculture production loans	$	2,068	$	878	$	1,393	$	951	$	940	$	895	$	43,686	$	—	$	50,811


	Term Loans Amortized Cost Basis by Origination Year – As of December 31, 2021
(in thousands)	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Pass	$	6,572	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	6,572
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total leases	$	6,572	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	6,572


Total loans outstanding:
Risk ratings
Pass	$	1,234,027	$	624,198	$	500,876	$	362,141	$	422,386	$	1,042,858	$	586,529	$	14,062	$	4,787,077
Special Mention	15,515		2,463		8,898		4,505		9,136		28,666		7,063		1,215		77,461
Substandard	3,778		525		8,300		3,931		2,899		23,354		7,523		1,776		52,086
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total loans outstanding	$	1,253,320	$	627,186	$	518,074	$	370,577	$	434,421	$	1,094,878	$	601,115	$	17,053	$	4,916,624


	Analysis of Past Due Loans - As of September 30, 2022
(in thousands)	30-59 days		60-89 days		> 90 days		Total Past Due Loans		Current		Total
Commercial real estate:
CRE non-owner occupied	$	113	$	166	$	224	$	503	$	2,061,903	$	2,062,406
CRE owner occupied	689		—		75		764		968,824		969,588
Multifamily	—		—		—		—		927,557		927,557
Farmland	336		438		—		774		278,605		279,379
Total commercial real estate loans	1,138		604		299		2,041		4,236,889		4,238,930
Consumer:
SFR 1-4 1st DT liens	15		114		616		745		764,284		765,029
SFR HELOCs and junior liens	1,257		53		964		2,274		391,862		394,136
Other	63		44		42		149		57,983		58,132
Total consumer loans	1,335		211		1,622		3,168		1,214,129		1,217,297
Commercial and industrial	669		280		140		1,089		533,871		534,960
Construction	—		—		85		85		243,486		243,571
Agriculture production	—		—		88		88		71,511		71,599
Leases	—		—		—		—		7,933		7,933
Total	$	3,142	$	1,095	$	2,234	$	6,471	$	6,307,819	$	6,314,290


	Analysis of Past Due Loans - As of December 31, 2021
(in thousands)	30-59 days		60-89 days		> 90 days		Total Past Due Loans		Current		Total
Commercial real estate:
CRE non-owner occupied	$	226	$	37	$	—	$	263	$	1,602,878	$	1,603,141
CRE owner occupied	271		127		273		671		705,636		706,307
Multifamily	—		—		—		—		823,500		823,500
Farmland	—		—		575		575		172,531		173,106
Total commercial real estate loans	497		164		848		1,509		3,304,545		3,306,054
Consumer:
SFR 1-4 1st DT liens	—		13		362		375		666,585		666,960
SFR HELOCs and junior liens	36		361		1,212		1,609		335,904		337,513
Other	109		7		28		144		66,934		67,078
Total consumer loans	145		381		1,602		2,128		1,069,423		1,071,551
Commercial and industrial	146		245		166		557		258,798		259,355
Construction	—		90		—		90		222,191		222,281
Agriculture production	48		—		—		48		50,763		50,811
Leases	—		—		—		—		6,572		6,572
Total	$	836	$	880	$	2,616	$	4,332	$	4,912,292	$	4,916,624


	Non Accrual Loans
	As of September 30, 2022						As of December 31, 2021
(in thousands)	Non accrual with no allowance for credit losses		Total non accrual		Past due 90 days or more and still accruing		Non accrual with no allowance for credit losses		Total non accrual		Past due 90 days or more and still accruing
Commercial real estate:
CRE non-owner occupied	$	2,032	$	2,032	$	—	$	7,899	$	7,899	$	—
CRE owner occupied	1,703		1,778		—		4,763		5,036		—
Multifamily	132		132		—		4,457		4,457		—
Farmland	813		695		—		452		3,020		—
Total commercial real estate loans	4,680		4,637		—		17,571		20,412		—
Consumer:
SFR 1-4 1st DT liens	3,103		3,255		—		3,594		3,595		—
SFR HELOCs and junior liens	2,945		3,365		—		3,285		3,801		—
Other	6		61		—		48		71		—
Total consumer loans	6,054		6,681		—		6,927		7,467		—
Commercial and industrial	462		655		5		1,904		2,416		—
Construction	120		120		—		15		55		—
Agriculture production	—		5,373		—		—		—		—
Leases	—		—		—		—		—		—
Sub-total	11,316		17,466		5		26,417		30,350		—
Less: Guaranteed loans	(110)		(147)		—		(713)		(775)
Total, net	$	11,206	$	17,319	$	5	$	25,704	$	29,575	$	—

Interest income on non accrual loans that would have been recognized during the three months ended September 30, 2022 and 2021, if all such loans had been current in accordance with their original terms, totaled $497,000 and $412,000, respectively. Interest income actually recognized on these originated loans during the three months ended September 30, 2022 and 2021 was $272,000 and $117,000, respectively.

Interest income on non accrual loans that would have been recognized during the nine months ended September 30, 2022 and 2021, if all such loans had been current in accordance with their original terms, totaled $901,000 and $1,472,000, respectively. Interest income actually recognized on these originated loans during the nine months ended September 30, 2022 and 2021 was $285,000 and $293,000, respectively.


	As of September 30, 2022
(in thousands)	Retail		Office		Warehouse		Other		Multifamily		Farmland		SFR-1st Deed		SFR-2nd Deed		Automobile/Truck		A/R and Inventory		Equipment		Total
Commercial real estate:
CRE non-owner occupied	$	1,031	$	101	$	—	$	900	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	2,032
CRE owner occupied	573		75		1,131		—		—		—		—		—		—		—		—		1,779
Multifamily	—		—		—		—		132		—		—		—		—		—		—		132
Farmland	—		—		—		—		—		813		—		—		—		—		—		813
Total commercial real estate loans	1,604		176		1,131		900		132		813		—		—		—		—		—		4,756
Consumer:
SFR 1-4 1st DT liens	—		—		—		—		—		—		3,255		—		—		—		—		3,255
SFR HELOCs and junior liens	—		—		—		—		—		—		1,503		1,442		—		—		—		2,945
Other	—		—		—		5		—		—		—		—		43		—		2		50
Total consumer loans	—		—		—		5		—		—		4,758		1,442		43		—		2		6,250
Commercial and industrial	—		—		—		—		—		—		—		—		—		604		50		654
Construction	—		—		—		—		—		—		120		—		—		—		—		120
Agriculture production	—		—		—		88		—		—		—		—		—		1,804		3,481		5,373
Leases	—		—		—		—		—		—		—		—		—		—		—		—
Total	$	1,604	$	176	$	1,131	$	993	$	132	$	813	$	4,878	$	1,442	$	43	$	2,408	$	3,533	$	17,153


	As of December 31, 2021
(in thousands)	Retail		Office		Warehouse		Other		Multifamily			Farmland		SFR -1st Deed		SFR -2nd Deed		Automobile/Truck		A/R and Inventory		Equipment		Total
Commercial real estate:
CRE non-owner occupied	$	2,591	$	1,253	$	1,545	$	7,272	$	—		$	—	$	—	$	—	$	—	$	—	$	—	$	12,661
CRE owner occupied	—		—		—		—		—			—		—		—		—		—		—		—
Multifamily	—		—		—		—		4,458			—		—		—		—		—		—		4,458
Farmland	—		—		—		—		—		—	1,027		—		—		—		—		—		1,027
Total commercial real estate loans	2,591		1,253		1,545		7,272		4,458			1,027		—		—		—		—		—		18,146
Consumer:
SFR 1-4 1st DT liens	—		—		—		—		—			—		3,589		—		—		—		—		3,589
SFR HELOCs and junior liens	—		—		—		—		—			—		1,649		1,636		—		—		—		3,285
Other	—		—		—		43		—			—		—		—		5		—		5		53
Total consumer loans	—		—		—		43		—			—		5,238		1,636		5		—		5		6,927
Commercial and industrial	—		—		—		—		—			—		—		—		—		2,162		112		2,274
Construction	—		—		—		—		—			—		15		—		—		—		—		15
Agriculture production	—		—		—		—		—			—		—		—		—		—		—		—
Leases	—		—		—		—		—			—		—		—		—		—		—		—
Total	$	2,591	$	1,253	$	1,545	$	7,315	$	4,458		$	1,027	$	5,253	$	1,636	$	5	$	2,162	$	117	$	27,362


	TDR information for the three months ended September 30, 2022
(dollars in thousands)	Number	Pre-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 liens	—	—		—		—		—	—		—
Other	—	—		—		—		—	—		—
Total consumer loans	—	—		—		—		—	—		—
Commercial and industrial	—	—		—		—		—	—		—
Construction	—	—		—		—		—	—		—
Agriculture production	4	7,210		7,210		—		—	—		—
Leases	—	—		—		—		—	—		—
Total	4	$	7,210	$	7,210	$	—	—	$	—	$	—


	TDR information for the three months ended September 30, 2021
(dollars in thousands)	Number	Pre-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	3	$	3,943	$	3,938	$	—	—	$	—	$	—
CRE owner occupied	—	—		—		—		—	—		—
Multifamily	—	—		—		—		—	—		—
Farmland	1	50		50		50		—	—		—
Total commercial real estate loans	4	3,993		3,988		50		—	—		—
Consumer:
SFR 1-4 1st DT liens	—	—		—		—		—	—		—
SFR HELOCs and junior liens	—	—		—		—		—	—		—
Other	—	—		—		—		—	—		—
Total consumer loans	—	—		—		—		—	—		—
Commercial and industrial	2	160		159		106		—	—		—
Construction	—	—		—		—		—	—		—
Agriculture production	—	—		—		—		—	—		—
Leases	—	—		—		—		—	—		—
Total	6	$	4,153	$	4,147	$	156	—	$	—	$	—


	TDR Information for the nine months ended September 30, 2022
(dollars in thousands)	Number	Pre-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	3	1,228		1,440		—		—	—		—
Total commercial real estate loans	3	1,228		1,440		—		—	—		—
Consumer:
SFR 1-4 1st DT liens	—	—		—		—		—	—		—
SFR HELOCs and junior liens	—	—		—		—		2	146		—
Other	—	—		—		—		—	—		—
Total consumer loans	—	—		—		—		2	146		—
Commercial and industrial	—	—		—		—		1	22		—
Construction	—	—		—		—		—	—		—
Agriculture production	4	7,210		7,210		—		—	—		—
Leases	—	—		—		—		—	—		—
Total	7	$	8,438	$	8,650	$	—	3	$	168	$	—


	TDR Information for the nine months ended September 30, 2021
(dollars in thousands)	Number	Pre-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	—	$	4,966	$	4,956	$	1,020	—	$	—	$	—
CRE owner occupied	—	740		742		742		—	—		—
Multifamily	—	—		—		—		—	—		—
Farmland	—	50		50		50		—	847		—
Total commercial real estate loans	—	5,756		5,748		1,812		—	847		—
Consumer:
SFR 1-4 1st DT liens	—	—		—		—		—	—		—
SFR HELOCs and junior liens	—	—		—		—		—	—		—
Other	—	—		—		—		—	—		—
Total consumer loans	—	—		—		—		—	—		—
Commercial and industrial	—	2,476		2,469		709		—	260		(5)
Construction	—	—		—		—		—	—		—
Agriculture production	—	—		—		—		—	—		—
Leases	—	—		—		—		—	—		—
Total	—	$	8,232	$	8,217	$	2,521	—	$	1,107	$	(5)

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

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.