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Allowance for Credit Losses
 6 Months Ended
Jun. 30, 2023
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 June 30, 2023
(in thousands)Beginning
Balance		Charge-offsRecoveriesProvision (benefit)Ending 
Balance
Commercial real estate:
CRE non-owner occupied$32,963 $— $— $79 $33,042 
CRE owner occupied14,559 — 1 5,648 20,208 
Multifamily13,873 — — 202 14,075 
Farmland3,542 — — 149 3,691 
Total commercial real estate loans64,937 — 1 6,078 71,016 
Consumer:
SFR 1-4 1st DT liens11,920 — — 1,214 13,134 
SFR HELOCs and junior liens10,914 — 37 (343)10,608 
Other2,062 (163)26 846 2,771 
Total consumer loans24,896 (163)63 1,717 26,513 
Commercial and industrial12,069 (113)123 (432)11,647 
Construction5,655 — — 1,376 7,031 
Agriculture production833 — 31 241 1,105 
Leases17 — — — 17 
Allowance for credit losses on loans108,407 (276)218 8,980 117,329 
Reserve for unfunded commitments4,195 — — 670 4,865 
Total$112,602 $(276)$218 $9,650 $122,194 
Allowance for credit losses – Six months ended June 30, 2023
(in thousands)Beginning
Balance		Charge-offsRecoveriesProvision (benefit)Ending 
Balance
Commercial real estate:
CRE non-owner occupied$30,962 $— $— $2,080 $33,042 
CRE owner occupied14,014 — 1 6,193 20,208 
Multifamily13,132 — — 943 14,075 
Farmland3,273 — — 418 3,691 
Total commercial real estate loans61,381 — 1 9,634 71,016 
Consumer:
SFR 1-4 1st DT liens11,268 — — 1,866 13,134 
SFR HELOCs and junior liens11,413 (42)102 (865)10,608 
Other1,958 (305)77 1,041 2,771 
Total consumer loans24,639 (347)179 2,042 26,513 
Commercial and industrial13,597 (1,687)176 (439)11,647 
Construction5,142 — — 1,889 7,031 
Agriculture production906 — 32 167 1,105 
Leases15 — — 2 17 
Allowance for credit losses on loans105,680 (2,034)388 13,295 117,329 
Reserve for unfunded commitments4,315 — — 550 4,865 
Total$109,995 $(2,034)$388 $13,845 $122,194 

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 includes 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. Despite continued declines on a year over year comparative basis, core inflation remains elevated from wage pressures, and higher living costs such as housing and food prices. Management notes the rapid intervals of rate increases by the Federal Reserve and flattening or inversion of the yield curve, have formed expectations of the US entering a recession within 12 months. As a result, management continues to believe that certain credit weaknesses 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 EstateConsumerCommercial and IndustrialConstructionAgriculture ProductionTotal
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 

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 – Year ended December 31, 2022
(in thousands)Beginning
Balance		ACL of PCD LoansCharge-offsRecoveriesProvision
(benefit)		Ending Balance
Commercial real estate:
CRE non-owner occupied$25,739 $746 $— $1 $4,476 $30,962 
CRE owner occupied10,691 63 — 2 3,258 14,014 
Multifamily12,395 — — — 737 13,132 
Farmland2,315764 (294)— 4883,273 
Total commercial real estate loans51,140 1,573 (294)3 8,959 61,381 
Consumer:
SFR 1-4 1st DT liens10,723 144 — 79 322 11,268 
SFR HELOCs and junior liens10,510 — (22)429 496 11,413 
Other2,241 — (572)235 54 1,958 
Total consumer loans23,474 144 (594)743 872 24,639 
Commercial and industrial3,862 81 (697)1,157 9,194 13,597 
Construction5,667 201 — — (726)5,142 
Agriculture production1,215 38 — 4 (351)906 
Leases18 — — — (3)15 
Allowance for credit losses on loans85,376 2,037 (1,585)1,907 17,945 105,680 
Reserve for unfunded commitments3,790 — — — 525 4,315 
Total$89,166 $2,037 $(1,585)$1,907 $18,470 $109,995 
Allowance for credit losses – Three months ended June 30, 2022
(in thousands)Beginning
Balance		ACL of PCD LoansCharge-offsRecoveriesProvision (benefit)Ending Balance
Commercial real estate:
CRE non-owner occupied$28,055 $— $— $26 $28,081 
CRE owner occupied12,071 — 1 548 12,620 
Multifamily11,987 — — (192)11,795 
Farmland2,879 — — 75 2,954 
Total commercial real estate loans54,992 — — 1 457 55,450 
Consumer:
SFR 1-4 1st DT liens10,669 — 1 (359)10,311 
SFR HELOCs and junior liens10,843 — 153 595 11,591 
Other2,167 (166)76 (48)2,029 
Total consumer loans23,679 — (166)230 188 23,931 
Commercial and industrial9,042 (235)124 1,048 9,979 
Construction7,437 — — 85 7,522 
Agriculture production883 — 1 162 1,046 
Leases16 — — — 16 
Allowance for credit losses on loans96,049 — (401)356 1,940 97,944 
Reserve for unfunded commitments3,915 — — 160 4,075 
Total$99,964 $— $(401)$356 $2,100 $102,019 
Allowance for credit losses – Six months ended June 30, 2022
(in thousands)Beginning
Balance		Adoption of CECLCharge-offsRecoveriesProvision (benefit)Ending Balance
Commercial real estate:
CRE non-owner occupied$25,739 $746 $— $— $1,596 $28,081 
CRE owner occupied10,691 63 — 1 1,865 12,620 
Multifamily12,395 — — — (600)11,795 
Farmland2,315 764 (294)— 169 2,954 
Total commercial real estate loans51,140 1,573 (294)1 3,030 55,450 
Consumer:
SFR 1-4 1st DT liens10,723 144 — 41 (597)10,311 
SFR HELOCs and junior liens10,510 — — 328 753 11,591 
Other2,241 — (285)147 (74)2,029 
Total consumer loans23,474 144 (285)516 82 23,931 
Commercial and industrial3,862 81 (565)1,011 5,590 9,979 
Construction5,667 201 — — 1,654 7,522 
Agriculture production1,215 38 — 2 (209)1,046 
Leases18 — — — (2)16 
Allowance for credit losses on loans85,376 2,037 (1,144)1,530 10,145 97,944 
Reserve for unfunded commitments3,790 — — — 285 4,075 
Total$89,166 $2,037 $(1,144)$1,530 $10,430 $102,019 

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

Term Loans Amortized Cost Basis by Origination Year – As of June 30, 2023
(in thousands)20232022202120202019PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
Commercial real estate:
CRE non-owner occupied risk ratings
Pass$74,480 $411,202 $287,950 $139,902 $224,859 $833,291 $104,382 $— $2,076,066 
Special Mention— — 7,422 5,450 17,579 27,217 1,347 —59,015 
Substandard— — 791 — 2,392 4,670 212 —8,065 
Doubtful/Loss— — — — — — — — — 
Total $74,480 $411,202 $296,163 $145,352 $244,830 $865,178 $105,941 $— $2,143,146 
Current period gross charge-offs$— $— $— $— $— $— $— $— $— 
Commercial real estate:
CRE owner occupied risk ratings
Pass$43,483 $191,817 $193,284 $122,066 $61,481 $284,127 $29,719 $— $925,977 
Special Mention73 845 14,981 3,040 717 6,386 — — 26,042 
Substandard— 3,072 1,176 5,185 112 10,644 153 — 20,342 
Doubtful/Loss— — — — — — — — — 
Total$43,556 $195,734 $209,441 $130,291 $62,310 $301,157 $29,872 $— $972,361 
Current period gross charge-offs$— $— $— $— $— $— $— $— $— 
Term Loans Amortized Cost Basis by Origination Year – As of June 30, 2023
(in thousands)20232022202120202019PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
Commercial real estate:
Multifamily risk ratings
Pass$7,578 $179,229 $280,895 $90,198 $107,518 $236,312 $37,843 $— $939,573 
Special Mention— — 11,908 — — — — — 11,908 
Substandard— — — — — 109 — — 109 
Doubtful/Loss— — — — — — — — — 
Total$7,578 $179,229 $292,803 $90,198 $107,518 $236,421 $37,843 $— $951,590 
Current period gross charge-offs$— $— $— $— $— $— $— $— $— 
Commercial real estate:
Farmland risk ratings
Pass$14,477 $46,947 $46,891 $16,295 $17,340 $44,959 $54,290 $— $241,199 
Special Mention— 3,119 4,986 326 5,234 4,834 736 — 19,235 
Substandard— — 790 365 — 10,458 4,780 — 16,393 
Doubtful/Loss— — — — — — — — — 
Total$14,477 $50,066 $52,667 $16,986 $22,574 $60,251 $59,806 $— $276,827 
Current period gross charge-offs$— $— $— $— $— $— $— $— $— 
Consumer loans:
SFR 1-4 1st DT liens risk ratings
Pass$52,682 $191,299 $269,009 $126,461 $31,577 $138,088 $— $3,542 $812,658 
Special Mention—1,073—3,2148156,810—3411,946
Substandard—1551,332——2,500—7554,742
Doubtful/Loss—————————
Total$52,682 $192,527 $270,341 $129,675 $32,392 $147,398 $— $4,331 $829,346 
Current period gross charge-offs$— $— $— $— $— $— $— $— $— 
Consumer loans:
SFR HELOCs and Junior Liens
Pass$307 $— $— $— $— $110 $350,621 $7,487 $358,525 
Special Mention——————9591371,096
Substandard——————3,4615183,979
Doubtful/Loss—————————
Total$307 $— $— $— $— $110 $355,041 $8,142 $363,600 
Current period gross charge-offs$— $— $— $— $— $— $— $— $— 
Consumer loans:
Other risk ratings
Pass$13,725 $10,649 $10,641 $8,747 $8,510 $5,716 $654 $— $58,642 
Special Mention— — 99 17 60 82 18 — 276 
Substandard90 42 60 30 74 44 21 — 361 
Doubtful/Loss— — — — — — — — — 
Total$13,815 $10,691 $10,800 $8,794 $8,644 $5,842 $693 $— $59,279 
Current period gross charge-offs$72 $48 $— $36 $— $2 $5 $— $163 
Term Loans Amortized Cost Basis by Origination Year – As of June 30, 2023
(in thousands)20232022202120202019PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
Commercial and industrial loans:
Commercial and industrial risk ratings
Pass$40,481 $94,564 $61,113 $12,857 $17,544 $9,489 $319,172 $308 $555,528 
Special Mention6582,99923864269707,11640112,472 
Substandard—1,2451,7033,029192711,881998,247 
Doubtful/Loss————————— 
Total$41,139 $98,808 $63,054 $15,950 $17,589 $10,730 $328,169 $808 $576,247 
Current period gross charge-offs$63 $— $— $— $— $— $50 $— $113 
Construction loans:
Construction risk ratings
Pass$19,561 $126,026 $66,947 $47,431 $4,822 $6,572 $— $— $271,359 
Special Mention— 6,993 — — — — — — 6,993 
Substandard— —— — 73 — — — 73 
Doubtful/Loss———————— — 
Total$19,561 $133,019 $66,947 $47,431 $4,895 $6,572 $— $— $278,425 
Current period gross charge-offs$— $— $— $— $— $— $— $— $— 
Agriculture production loans:
Agriculture production risk ratings
Pass$249 $3,154 $2,407 $882 $875 $8,611 $35,606 $— $51,784 
Special Mention— — — — — 296 6,399 — 6,695 
Substandard— — — — — — 2,858 — 2,858 
Doubtful/Loss— — — — — — — — — 
Total$249 $3,154 $2,407 $882 $875 $8,907 $44,863 $— $61,337 
Current period gross charge-offs$— $— $— $— $— $— $— $— $— 
Leases:
Lease risk ratings
Pass$8,582 $— $— $— $— $— $— $— $8,582
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful/Loss— — — — — — — —— 
Total$8,582 $— $— $— $— $— $— $— $8,582 
Current period gross charge-offs$— $— $— $— $— $— $— $— $— 
Total loans outstanding:
Risk ratings
Pass$275,605 $1,254,887 $1,219,137 $564,839 $474,526 $1,567,275 $932,287 $11,337 $6,299,893 
Special Mention731 15,029 39,634 12,111 24,431 46,595 16,575 572 155,678 
Substandard90 4,514 5,852 8,609 2,670 28,696 13,366 1,372 65,169 
Doubtful/Loss— — — — — — — — — 
Total$276,426 $1,274,430 $1,264,623 $585,559 $501,627 $1,642,566 $962,228 $13,281 $6,520,740 
Current period gross charge-offs$135 $48 $— $36 $— $2 $55 $— $276 
Term Loans Amortized Cost Basis by Origination Year – As of December 31, 2022
(in thousands)20222021202020192018PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
Commercial real estate:
CRE non-owner occupied risk ratings
Pass$399,910 $304,636 $152,960 $221,659 $147,842 $748,994 $123,794 $— $2,099,795 
Special Mention— — — 20,033 — 21,681 1,346 — 43,060 
Substandard— 864 768 — 1,059 4,179 — — 6,870
Doubtful/Loss— — — — — — — — — 
Total$399,910 $305,500 $153,728 $241,692 $148,901 $774,854 $125,140 $— $2,149,725 
Commercial real estate:
CRE owner occupied risk ratings
Pass$210,101 $197,787 $120,929 $64,244 $49,755 $251,137 $43,343 $— $937,296 
Special Mention131 16,296 234 731 — 6,971 879 — 25,242 
Substandard3,213 — 5,249 1,893 1,103 10,654 157 — 22,269 
Doubtful/Loss————————— 
Total$213,445 $214,083 $126,412 $66,868 $50,858 $268,762 $44,379 $— $984,807 
Commercial real estate:
Multifamily risk ratings
Pass$159,318 $290,170 $96,937 $108,586 $106,287 $154,125 $28,989 $— $944,412 
Special Mention— — — — — — — — — 
Substandard— — — — — 125 — — 125 
Doubtful/Loss————————— 
Total$159,318 $290,170 $96,937 $108,586 $106,287 $154,250 $28,989 $— $944,537 
Commercial real estate:
Farmland risk ratings
Pass$47,067 $53,275 $16,739 $18,589 $12,386 $34,528 $53,684 $— $236,268 
Special Mention3,1397832465,000—3,99114,275—27,434 
Substandard——1,7727653,1587,0943,523—16,312 
Doubtful/Loss————————— 
Total$50,206 $54,058 $18,757 $24,354 $15,544 $45,613 $71,482 $— $280,014 
Consumer loans:
SFR 1-4 1st DT liens risk ratings
Pass$194,933 $265,370 $131,922 $33,395 $28,545 $115,469 $8 $2,924 $772,566 
Special Mention— — 1,531 282 3,277 5,854 — 465 11,409 
Substandard— 1,204 — — 1,004 3,521 — 645 6,374 
Doubtful/Loss— — — — — — — — — 
Total$194,933 $266,574 $133,453 $33,677 $32,826 $124,844 $8 $4,034 $790,349 
Term Loans Amortized Cost Basis by Origination Year – As of December 31, 2022
(in thousands)20222021202020192018PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
Consumer loans:
SFR HELOCs and Junior Liens
Pass$505 $— $— $— $— $127 $378,939 $8,462 $388,033 
Special Mention— — — — — — 1,842 81 1,923 
Substandard— — — — — — 3,072 638 3,710 
Doubtful/Loss— — — — — — — — — 
Total$505 $— $— $— $— $127 $383,853 $9,181 $393,666 

Consumer loans:
Other risk ratings
Pass$14,070 $12,990 $10,211 $10,650 $5,225 $1,945 $899 $— $55,990 
Special Mention— 18 77 135 176 32 47 — 485 
Substandard— — 42 92 — 96 23 — 253 
Doubtful/Loss— — — — — — — — — 
Total$14,070 $13,008 $10,330 $10,877 $5,401 $2,073 $969 $— $56,728 
Commercial and industrial loans:
Commercial and industrial risk ratings
Pass$125,710 $64,966 $17,746 $23,131 $7,628 $5,051 $297,341 $483 $542,056 
Special Mention3,032 139 21 49 138 768 11,547 — 15,694 
Substandard1,293 1,142 5,179 14 33 611 3,798 101 12,171 
Doubtful/Loss— — — — — — — — — 
Total$130,035 $66,247 $22,946 $23,194 $7,799 $6,430 $312,686 $584 $569,921 
Construction loans:
Construction risk ratings
Pass$72,840 $72,308 $43,409 $15,358 $2,159 $4,900 $— $— $210,974 
Special Mention— —————— — — 
Substandard— ——457—129— — 586 
Doubtful/Loss— — — — — — — — — 
Total$72,840 $72,308 $43,409 $15,815 $2,159 $5,029 $— $— $211,560 
Agriculture production loans:
Agriculture production risk ratings
Pass$3,414 $2,777 $1,149 $1,104 $8,902 $1,058 $38,425 $— $56,829 
Special Mention— — — — 90 31 1,632 — 1,753 
Substandard— — — — — — 2,832 — 2,832 
Doubtful/Loss— — — — — — — — — 
Total$3,414 $2,777 $1,149 $1,104 $8,992 $1,089 $42,889 $— $61,414 
Term Loans Amortized Cost Basis by Origination Year – As of December 31, 2022
(in thousands)20222021202020192018PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
Leases:
Lease risk ratings
Pass$7,726 $— $— $— $— $— $— $— $7,726 
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful/Loss— — — — — — — — — 
Total$7,726 $— $— $— $— $— $— $— $7,726 
Total loans outstanding:
Risk ratings
Pass$1,235,594 $1,264,279 $592,002 $496,716 $368,729 $1,317,334 $965,422 $11,869 $6,251,945 
Special Mention6,302 17,236 2,109 26,230 3,681 39,328 31,568 546 127,000 
Substandard4,506 3,210 13,010 3,221 6,357 26,409 13,405 1,384 71,502 
Doubtful/Loss— — — — — — — — — 
Total$1,246,402 $1,284,725 $607,121 $526,167 $378,767 $1,383,071 $1,010,395 $13,799 $6,450,447 
The following table shows the ending balance of current and past due originated loans by loan category as of the date indicated:

Analysis of Past Due Loans - As of June 30, 2023
(in thousands)30-59 days60-89 days> 90 daysTotal Past
Due Loans		CurrentTotal
Commercial real estate:
CRE non-owner occupied$304 $— $347 $651 $2,142,495 $2,143,146 
CRE owner occupied191 — 250 441 971,920 972,361 
Multifamily— — — — 951,590 951,590 
Farmland150 — 1,508 1,658 275,169 276,827 
Total commercial real estate loans645 — 2,105 2,750 4,341,174 4,343,924 
Consumer:
SFR 1-4 1st DT liens1 106 1,484 1,591 827,755 829,346 
SFR HELOCs and junior liens1,918 391 327 2,636 360,964 363,600 
Other181 76 99 356 58,923 59,279 
Total consumer loans2,100 573 1,910 4,583 1,247,642 1,252,225 
Commercial and industrial158 160 1,399 1,717 574,530 576,247 
Construction400 — — 400 278,025 278,425 
Agriculture production— — 33 33 61,304 61,337 
Leases— — — — 8,582 8,582 
Total$3,303 $733 $5,447 $9,483 $6,511,257 $6,520,740 
Analysis of Past Due Loans - As of December 31, 2022
(in thousands)30-59 days60-89 days> 90 daysTotal Past
Due Loans		CurrentTotal
Commercial real estate:
CRE non-owner occupied$— $— $— $— $2,149,725 $2,149,725 
CRE owner occupied— 98 75 173 984,634 984,807 
Multifamily159 — — 159 944,378 944,537 
Farmland— — — — 280,014280,014
Total commercial real estate loans159 98 75 332 4,358,751 4,359,083 
Consumer:
SFR 1-4 1st DT liens24 — 279 303 790,046 790,349 
SFR HELOCs and junior liens172 166 707 1,045 392,621 393,666 
Other26 34 55 115 56,613 56,728 
Total consumer loans2222001,0411,4631,239,2801,240,743
Commercial and industrial2,300 190 283 2,773 567,148 569,921 
Construction— — 379 379 211,181 211,560 
Agriculture production— — — — 61,414 61,414 
Leases— — — — 7,726 7,726 
Total$2,681 $488 $1,778 $4,947 $6,445,500 $6,450,447 
The following table shows the ending balance of non accrual loans by loan category as of the date indicated:
Non Accrual Loans
As of June 30, 2023As of December 31, 2022
(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$1,230 $1,230 $— $1,739 $1,739 $— 
CRE owner occupied9,090 18,871 — 4,938 4,938 — 
Multifamily110 110 — 125 125 — 
Farmland2,594 2,230 — 1,772 1,772 — 
Total commercial real estate loans13,024 22,441 — 8,574 8,574 — 
Consumer:
SFR 1-4 1st DT liens3,082 3,393 — 4,117 4,220 — 
SFR HELOCs and junior liens3,182 3,489 — 2,498 3,155 — 
Other90 129 — 47 84 — 
Total consumer loans6,354 7,011 — 6,662 7,459 — 
Commercial and industrial6,371 7,504 32 1,224 3,518 — 
Construction73 73 — 491 491 — 
Agriculture production563 563 — 1,279 1,279 — 
Leases— — — — — — 
Sub-total26,38537,5923218,23021,321—
Less: Guaranteed loans(798)(964)— (105)(225)
Total, net$25,587 $36,628 $32 $18,125 $21,096 $— 
Interest income on non accrual loans that would have been recognized during the three months ended June 30, 2023 and 2022, if all such loans had been current in accordance with their original terms, totaled $0.96 million and $0.24 million, respectively. Interest income actually recognized on these originated loans during the three months ended June 30, 2023 and 2022 was $0.7 million and $0.01 million, respectively.
The following tables present the amortized cost basis of collateral dependent loans by class of loans as of the following periods:

As of June 30, 2023
(in thousands)RetailOfficeWarehouseOtherMultifamilyFarmlandSFR-1st DeedSFR-2nd DeedAutomobile/TruckA/R and InventoryEquipmentTotal
Commercial real estate:
CRE non-owner occupied$136 $304 $— $791 $— $— $— $— $— $— $— $1,231 
CRE owner occupied505 75 — 18,291 — — — — — — — 18,871 
Multifamily— — — — 109 — — — — — — 109 
Farmland— — — — — 2,594 — — — — — 2,594 
Total commercial real estate loans641 379 — 19,082 109 2,594 — — — — — 22,805 
Consumer:
SFR 1-4 1st DT liens— — — — — — 3,394 — — — — 3,394 
SFR HELOCs and junior liens— — — — — — 1,958 1,224 — — — 3,182 
Other— — — 3 — — — — 91 — 26 120 
Total consumer loans— — — 3 — — 5,352 1,224 91 — 26 6,696 
Commercial and industrial— — — — — — — — — 6,651 853 7,504 
Construction— — — — — — 73 — — — — 73 
Agriculture production— — — — — — — — — — 563 563 
Leases— — — — — — — — — — — — 
Total$641 $379 $— $19,085 $109 $2,594 $5,425 $1,224 $91 $6,651 $1,442 $37,641 

As of December 31, 2022
(in thousands)RetailOfficeWarehouseOtherMultifamilyFarmlandSFR -1st DeedSFR -2nd DeedAutomobile/TruckA/R and InventoryEquipmentTotal
Commercial real estate:
CRE non-owner occupied$777 $98 $— $864 $— $— $— $— $— $— $— $1,739 
CRE owner occupied548 75 1,103 3,212 — — — — — — — 4,938 
Multifamily— — — — 125 — — — — — — 125 
Farmland— — — — — 1,772 — — — — — 1,772 
Total commercial real estate loans1,325 173 1,103 4,076 125 1,772 — — — — — 8,574 
Consumer:
SFR 1-4 1st DT liens— — — — — — 4,220 — — — — 4,220 
SFR HELOCs and junior liens— — — — — — 1,664 1,121 — — — 2,785 
Other— — — 5 — — — — 61 — 2 68 
Total consumer loans— — — 5 — — 5,884 1,121 61 — 2 7,073 
Commercial and industrial— — — 1,874 — — — — — 1,596 48 3,518 
Construction— — — 379 — — 112 — — — — 491 
Agriculture production— — — — — — — — — — 1,279 1,279 
Leases— — — — — — — — — — — — 
Total$1,325 $173 $1,103 $6,334 $125 $1,772 $5,996 $1,121 $61 $1,596 $1,329 $20,935 
Modifications to borrowers experiencing financial difficulty may include interest rate reductions, principal or interest forgiveness, forbearances, term extensions, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral.

The following tables show the amortized cost basis of loans that were both experiencing financial difficulty and modified during the periods presented. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivables is also presented below.
For the three and six months ended June 30, 2023
(in thousands)Payment Delay/Term ExtensionTotal % of Loans Outstanding
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 industrial1770.03 
Construction— — 
Agriculture production— — 
Leases— — 
Total$177 0.03 %

The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the three and six months ended June 30, 2023.
Weighted Average Months Term Extension
Commercial and industrial12

There were no loans with payment defaults by borrowers experiencing financial difficulty during the quarter ended June 30, 2023 which had material modifications in rate, term or principal forgiveness during the twelve months prior to default.