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, 2024
(in thousands)	Beginning Balance		Charge-offs		Recoveries		Provision (benefit)		Ending Balance
Commercial real estate:
CRE non-owner occupied	$	36,687	$	—	$	—	$	468	$	37,155
CRE owner occupied	16,111		—		1		(239)		15,873
Multifamily	15,682		—		—		291		15,973
Farmland	3,695		—		—		336		4,031
Total commercial real estate loans	72,175		—		1		856		73,032
Consumer:
SFR 1-4 1st DT liens	14,140		—		—		464		14,604
SFR HELOCs and junior liens	9,942		(9)		51		103		10,087
Other	3,359		(118)		81		(339)		2,983
Total consumer loans	27,441		(127)		132		228		27,674
Commercial and industrial	11,867		(870)		261		870		12,128
Construction	9,162		—		—		(1,696)		7,466
Agriculture production	3,708		(613)		4		81		3,180
Leases	41		—		—		(4)		37
Allowance for credit losses on loans	124,394		(1,610)		398		335		123,517
Reserve for unfunded commitments	6,140		—		—		70		6,210
Total	$	130,534	$	(1,610)	$	398	$	405	$	129,727


	Allowance for credit losses – Six months ended June 30, 2024
(in thousands)	Beginning Balance		Charge-offs		Recoveries		Provision (benefit)		Ending Balance
Commercial real estate:
CRE non-owner occupied	$	35,077	$	—	$	—	$	2,078	$	37,155
CRE owner occupied	15,081		—		1		791		15,873
Multifamily	14,418		—		—		1,555		15,973
Farmland	4,288		—		—		(257)		4,031
Total commercial real estate loans	68,864		—		1		4,167		73,032
Consumer:
SFR 1-4 1st DT liens	14,009		(26)		—		621		14,604
SFR HELOCs and junior liens	10,273		(41)		100		(245)		10,087
Other	3,171		(368)		121		59		2,983
Total consumer loans	27,453		(435)		221		435		27,674
Commercial and industrial	12,750		(1,000)		283		95		12,128
Construction	8,856		—		—		(1,390)		7,466
Agriculture production	3,589		(1,450)		25		1,016		3,180
Leases	10		—		—		27		37
Allowance for credit losses on loans	121,522		(2,885)		530		4,350		123,517
Reserve for unfunded commitments	5,850		—		—		360		6,210
Total	$	127,372	$	(2,885)	$	530	$	4,710	$	129,727

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. Despite continued declines on a year over year comparative basis, core inflation remains elevated from wage pressures, and higher living costs such as housing, energy and food prices. Management notes that the recent cumulative increase in interest rates by the Federal Reserve may create repricing risk for certain borrowers and further, continued inversion of the yield curve, creates informed expectations of the US potentially entering a recession within 12 months. While projected cuts in interest rates from the Federal Reserve during 2024 may improve this outlook, the uncertainty associated with the extent and timing of these potential reductions has inhibited a change to forecasted reserve levels. As a result, management continues to believe that certain credit weaknesses are likely present in the overall economy and that it is appropriate to maintain a reserve level that incorporates such risk factors.


	Allowance for credit losses – Year ended December 31, 2023
(in thousands)	Beginning Balance		Charge-offs		Recoveries		Provision (benefit)		Ending Balance
Commercial real estate:
CRE non-owner occupied	$	30,962	$	—	$	—	$	4,115	$	35,077
CRE owner occupied	14,014		(3,637)		2		4,702		15,081
Multifamily	13,132		—		—		1,286		14,418
Farmland	3,273		—		—		1,015		4,288
Total commercial real estate loans	61,381		(3,637)		2		11,118		68,864
Consumer:
SFR 1-4 1st DT liens	11,268		—		262		2,479		14,009
SFR HELOCs and junior liens	11,413		(66)		723		(1,797)		10,273
Other	1,958		(558)		190		1,581		3,171
Total consumer loans	24,639		(624)		1,175		2,263		27,453
Commercial and industrial	13,597		(3,879)		316		2,716		12,750
Construction	5,142		—		—		3,714		8,856
Agriculture production	906		—		34		2,649		3,589
Leases	15		—		—		(5)		10
Allowance for credit losses on loans	105,680		(8,140)		1,527		22,455		121,522
Reserve for unfunded commitments	4,315		—		—		1,535		5,850
Total	$	109,995	$	(8,140)	$	1,527	$	23,990	$	127,372


	Allowance for credit losses – Three months ended June 30, 2023
(in thousands)	Beginning Balance		Charge-offs		Recoveries		Provision (benefit)		Ending Balance
Commercial real estate:
CRE non-owner occupied	$	32,963	$	—	$	—	$	79	$	33,042
CRE owner occupied	14,559		—		1		5,648		20,208
Multifamily	13,873		—		—		202		14,075
Farmland	3,542		—		—		149		3,691
Total commercial real estate loans	64,937		—		1		6,078		71,016
Consumer:
SFR 1-4 1st DT liens	11,920		—		—		1,214		13,134
SFR HELOCs and junior liens	10,914		—		37		(343)		10,608
Other	2,062		(163)		26		846		2,771
Total consumer loans	24,896		(163)		63		1,717		26,513
Commercial and industrial	12,069		(113)		123		(432)		11,647
Construction	5,655		—		—		1,376		7,031
Agriculture production	833		—		31		241		1,105
Leases	17		—		—		—		17
Allowance for credit losses on loans	108,407		(276)		218		8,980		117,329
Reserve for unfunded commitments	4,195		—		—		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-offs		Recoveries		Provision (benefit)		Ending Balance
Commercial real estate:
CRE non-owner occupied	$	30,962	$	—	$	—	$	2,080	$	33,042
CRE owner occupied	14,014		—		1		6,193		20,208
Multifamily	13,132		—		—		943		14,075
Farmland	3,273		—		—		418		3,691
Total commercial real estate loans	61,381		—		1		9,634		71,016
Consumer:
SFR 1-4 1st DT liens	11,268		—		—		1,866		13,134
SFR HELOCs and junior liens	11,413		(42)		102		(865)		10,608
Other	1,958		(305)		77		1,041		2,771
Total consumer loans	24,639		(347)		179		2,042		26,513
Commercial and industrial	13,597		(1,687)		176		(439)		11,647
Construction	5,142		—		—		1,889		7,031
Agriculture production	906		—		32		167		1,105
Leases	15		—		—		2		17
Allowance for credit losses on loans	105,680		(2,034)		388		13,295		117,329
Reserve for unfunded commitments	4,315		—		—		550		4,865
Total	$	109,995	$	(2,034)	$	388	$	13,845	$	122,194

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.

•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 June 30, 2024												Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
(in thousands)	2024		2023		2022		2021		2020		Prior
Commercial real estate:
CRE non-owner occupied risk ratings
Pass	$	40,265	$	181,312	$	427,650	$	273,937	$	151,948	$	964,184	$	152,986	$	—	$	2,192,282
Special Mention	—		—		1,638		—		—		28,048		1,431		—		31,117
Substandard	—		—		—		767		—		17,207		747		—		18,721
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total	$	40,265	$	181,312	$	429,288	$	274,704	$	151,948	$	1,009,439	$	155,164	$	—	$	2,242,120
Year-to-date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—




Commercial real estate:
CRE owner occupied risk ratings
Pass	$	50,113	$	74,662	$	200,057	$	181,223	$	110,268	$	280,971	$	27,458	$	—	$	924,752
Special Mention	2,143		—		816		2,309		209		5,850		—		—		11,327
Substandard	—		—		8,079		4,648		2,695		995		—		—		16,417
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total	$	52,256	$	74,662	$	208,952	$	188,180	$	113,172	$	287,816	$	27,458	$	—	$	952,496
Year-to-date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


	Term Loans Amortized Cost Basis by Origination Year – As of June 30, 2024												Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
(in thousands)	2024		2023		2022		2021		2020		Prior
Commercial real estate:
Multifamily risk ratings
Pass	$	14,652	$	28,130	$	175,293	$	295,199	$	119,893	$	320,466	$	34,155	$	—	$	987,788
Special Mention	—		—		—		12,316		—		497		—		—		12,813
Substandard	—		—		—		—		—		205		—		—		205
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total	$	14,652	$	28,130	$	175,293	$	307,515	$	119,893	$	321,168	$	34,155	$	—	$	1,000,806
Year-to-date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


Commercial real estate:
Farmland risk ratings
Pass	$	2,216	$	21,067	$	45,643	$	23,997	$	15,510	$	51,435	$	44,384	$	—	$	204,252
Special Mention	—		—		2,963		5,804		427		4,635		1,217		—		15,046
Substandard	—		101		—		21,191		—		12,981		12,118		—		46,391
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total	$	2,216	$	21,168	$	48,606	$	50,992	$	15,937	$	69,051	$	57,719	$	—	$	265,689
Year-to-date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


Consumer loans:
SFR 1-4 1st DT liens risk ratings
Pass	$	37,699	$	126,042	$	185,536	$	254,103	$	118,386	$	147,272	$	—	$	4,187	$	873,225
Special Mention	—		69		—		—		—		1,282		—		—		1,351
Substandard	—		253		141		1,259		2,123		6,282		—		330		10,388
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total	$	37,699	$	126,364	$	185,677	$	255,362	$	120,509	$	154,836	$	—	$	4,517	$	884,964
Year-to-date gross charge-offs	$	—	$	26	$	—	$	—	$	—	$	—	$	—	$	—	$	26


Consumer loans:
SFR HELOCs and junior liens risk ratings
Pass	$	252	$	—	$	—	$	—	$	—	$	83	$	330,700	$	6,243	$	337,278
Special Mention	—		—		—		—		—		—		4,691		247		4,938
Substandard	—		—		—		—		—		—		3,696		478		4,174
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total	$	252	$	—	$	—	$	—	$	—	$	83	$	339,087	$	6,968	$	346,390
Year-to-date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	41	$	—	$	41




Consumer loans:
Other risk ratings
Pass	$	10,320	$	27,562	$	7,256	$	7,239	$	6,347	$	9,159	$	619	$	—	$	68,502
Special Mention	—		8		3		236		7		54		16		—		324
Substandard	—		83		189		135		2		136		2		—		547
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total	$	10,320	$	27,653	$	7,448	$	7,610	$	6,356	$	9,349	$	637	$	—	$	69,373
Year-to-date gross charge-offs	$	179	$	67	$	—	$	74	$	28	$	15	$	5	$	—	$	368


	Term Loans Amortized Cost Basis by Origination Year – As of June 30, 2024												Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
(in thousands)	2024		2023		2022		2021		2020		Prior
Commercial and industrial loans:
Commercial and industrial risk ratings
Pass	$	39,523	$	60,115	$	71,586	$	40,315	$	6,498	$	12,628	$	306,381	$	225	$	537,271
Special Mention	149		—		733		144		55		—		3,224		—		4,305
Substandard	183		—		1,794		881		63		679		3,374		75		7,049
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total	$	39,855	$	60,115	$	74,113	$	41,340	$	6,616	$	13,307	$	312,979	$	300	$	548,625
Year-to-date gross charge-offs	$	106	$	—	$	62	$	93	$	—	$	—	$	739	$	—	$	1,000


Construction loans:
Construction risk ratings
Pass	$	8,485	$	84,942	$	100,770	$	59,177	$	9,188	$	7,729	$	—	$	—	$	270,291
Special Mention	—		—		13,020		—		—		—		—		—		13,020
Substandard	—		—		—		—		—		63		—		—		63
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total	$	8,485	$	84,942	$	113,790	$	59,177	$	9,188	$	7,792	$	—	$	—	$	283,374
Year-to-date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


Agriculture production loans:
Agriculture production risk ratings
Pass	$	859	$	1,344	$	2,663	$	1,163	$	307	$	7,965	$	117,831	$	—	$	132,132
Special Mention	—		33		—		—		—		—		7,050		—		7,083
Substandard	—		—		160		568		139		19		138		—		1,024
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total	$	859	$	1,377	$	2,823	$	1,731	$	446	$	7,984	$	125,019	$	—	$	140,239
Year-to-date gross charge-offs	$	—	$	—	$	173	$	—	$	—	$	—	$	1,277	$	—	$	1,450


Leases:
Lease risk ratings
Pass	$	8,450	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	8,450
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total	$	8,450	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	8,450
Year-to-date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—




Total loans outstanding:
Risk ratings
Pass	$	212,834	$	605,176	$	1,216,454	$	1,136,353	$	538,345	$	1,801,892	$	1,014,514	$	10,655	$	6,536,223
Special Mention	2,292		110		19,173		20,809		698		40,366		17,629		247		101,324
Substandard	183		437		10,363		29,449		5,022		38,567		20,075		883		104,979
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total	$	215,309	$	605,723	$	1,245,990	$	1,186,611	$	544,065	$	1,880,825	$	1,052,218	$	11,785	$	6,742,526
Year-to-date gross charge-offs	$	285	$	93	$	235	$	167	$	28	$	15	$	2,062	$	—	$	2,885


	Term Loans Amortized Cost Basis by Origination Year – As of December 31, 2023												Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
(in thousands)	2023		2022		2021		2020		2019		Prior
Commercial real estate:
CRE non-owner occupied risk ratings
Pass	$	180,326	$	413,863	$	290,210	$	137,656	$	206,408	$	792,875	$	141,686	$	—	$	2,163,024
Special Mention	—		1,329		—		5,281		17,093		14,174		1,247		—		39,124
Substandard	—		—		767		—		2,139		12,540		212		—		15,658
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total	$	180,326	$	415,192	$	290,977	$	142,937	$	225,640	$	819,589	$	143,145	$	—	$	2,217,806
Period end gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


Commercial real estate:
CRE owner occupied risk ratings
Pass	$	71,288	$	196,915	$	190,384	$	118,457	$	59,220	$	268,990	$	23,740	$	—	$	928,994
Special Mention	—		5,773		1,513		2,754		703		2,678		—		—		13,421
Substandard	—		2,972		7,835		—		111		3,107		—		—		14,025
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total	$	71,288	$	205,660	$	199,732	$	121,211	$	60,034	$	274,775	$	23,740	$	—	$	956,440
Period end gross write-offs	$	—	$	—	$	—	$	1,380	$	—	$	2,228	$	29	$	—	$	3,637


Commercial real estate:
Multifamily risk ratings
Pass	$	28,445	$	177,032	$	279,660	$	89,106	$	104,108	$	225,446	$	33,470	$	—	$	937,267
Special Mention	—		—		11,914		—		—		321		—		—		12,235
Substandard	—		—		—		—		—		—		—		—		—
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total	$	28,445	$	177,032	$	291,574	$	89,106	$	104,108	$	225,767	$	33,470	$	—	$	949,502
Period end gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


Commercial real estate:
Farmland risk ratings
Pass	$	21,729	$	46,398	$	37,134	$	16,006	$	16,780	$	41,663	$	50,857	$	—	$	230,567
Special Mention	—		2,170		5,802		51		261		734		—		—		9,018
Substandard	101		813		9,053		377		—		13,266		7,859		—		31,469
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total	$	21,830	$	49,381	$	51,989	$	16,434	$	17,041	$	55,663	$	58,716	$	—	$	271,054
Period end gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


Consumer loans:
SFR 1-4 1st DT liens risk ratings
Pass	$	135,741	$	189,920	$	260,870	$	125,081	$	29,568	$	126,975	$	—	$	4,079	$	872,234
Special Mention	71		—		—		—		—		1,948		—		27		2,046
Substandard	—		140		1,296		1,490		531		5,265		—		436		9,158
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total	$	135,812	$	190,060	$	262,166	$	126,571	$	30,099	$	134,188	$	—	$	4,542	$	883,438
Period end gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


	Term Loans Amortized Cost Basis by Origination Year – As of December 31, 2023												Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
(in thousands)	2023		2022		2021		2020		2019		Prior
Consumer loans:
SFR HELOCs and junior liens risk ratings
Pass	$	297	$	—	$	—	$	—	$	—	$	96	$	343,698	$	6,444	$	350,535
Special Mention	—		—		—		—		—		—		2,274		138		2,412
Substandard	—		—		—		—		—		—		3,212		654		3,866
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total	$	297	$	—	$	—	$	—	$	—	$	96	$	349,184	$	7,236	$	356,813
Period end gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	66	$	66


Consumer loans:
Other risk ratings
Pass	$	34,441	$	9,061	$	8,908	$	7,419	$	6,825	$	4,619	$	659	$	—	$	71,932
Special Mention	21		54		203		63		54		37		18		—		450
Substandard	87		183		164		30		116		52		3		—		635
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total	$	34,549	$	9,298	$	9,275	$	7,512	$	6,995	$	4,708	$	680	$	—	$	73,017
Period end gross write-offs	$	376	$	82	$	—	$	36	$	39	$	9	$	16	$	—	$	558


Commercial and industrial loans:
Commercial and industrial risk ratings
Pass	$	70,930	$	83,184	$	51,455	$	9,504	$	10,193	$	7,636	$	340,858	$	318	$	574,078
Special Mention	33		663		237		83		—		178		1,126		—		2,320
Substandard	—		2,014		782		103		4		762		6,318		74		10,057
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total	$	70,963	$	85,861	$	52,474	$	9,690	$	10,197	$	8,576	$	348,302	$	392	$	586,455
Period end gross write-offs	$	153	$	287	$	240	$	2,285	$	—	$	—	$	896	$	18	$	3,879


Construction loans:
Construction risk ratings
Pass	$	56,378	$	136,294	$	85,144	$	47,632	$	4,583	$	6,518	$	—	$	—	$	336,549
Special Mention	—		10,582		—		—		—		—		—		—		10,582
Substandard	—		—		—		—		67		—		—		—		67
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total	$	56,378	$	146,876	$	85,144	$	47,632	$	4,650	$	6,518	$	—	$	—	$	347,198
Period end gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


Agriculture production loans:
Agriculture production risk ratings
Pass	$	945	$	2,749	$	1,595	$	396	$	620	$	8,491	$	114,935	$	—	$	129,731
Special Mention	—		183		543		176		—		—		11,302		—		12,204
Substandard	—		—		—		—		—		—		2,562		—		2,562
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total	$	945	$	2,932	$	2,138	$	572	$	620	$	8,491	$	128,799	$	—	$	144,497
Period end gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


	Term Loans Amortized Cost Basis by Origination Year – As of December 31, 2023												Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
(in thousands)	2023		2022		2021		2020		2019		Prior
Leases:
Lease risk ratings
Pass	$	8,250	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	8,250
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total	$	8,250	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	8,250
Period end gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


Total loans outstanding:
Risk ratings
Pass	$	608,770	$	1,255,416	$	1,205,360	$	551,257	$	438,305	$	1,483,309	$	1,049,903	$	10,841	$	6,603,161
Special Mention	125		20,754		20,212		8,408		18,111		20,070		15,967		165		103,812
Substandard	188		6,122		19,897		2,000		2,968		34,992		20,166		1,164		87,497
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total	$	609,083	$	1,282,292	$	1,245,469	$	561,665	$	459,384	$	1,538,371	$	1,086,036	$	12,170	$	6,794,470
Period end gross write-offs	$	529	$	369	$	240	$	3,701	$	39	$	2,237	$	941	$	84	$	8,140


	Analysis of Past Due Loans - As of June 30, 2024
(in thousands)	30-59 days		60-89 days		> 90 days		Total Past Due Loans		Current		Total
Commercial real estate:
CRE non-owner occupied	$	300	$	229	$	4,166	$	4,695	$	2,237,425	$	2,242,120
CRE owner occupied	4,653		—		277		4,930		947,566		952,496
Multifamily	—		507		—		507		1,000,299		1,000,806
Farmland	—		549		7,954		8,503		257,186		265,689
Total commercial real estate loans	4,953		1,285		12,397		18,635		4,442,476		4,461,111
Consumer:
SFR 1-4 1st DT liens	165		2,687		2,375		5,227		879,737		884,964
SFR HELOCs and junior liens	2,132		144		278		2,554		343,836		346,390
Other	207		175		2		384		68,989		69,373
Total consumer loans	2,504		3,006		2,655		8,165		1,292,562		1,300,727
Commercial and industrial	672		168		1,868		2,708		545,917		548,625
Construction	—		—		—		—		283,374		283,374
Agriculture production	707		—		157		864		139,375		140,239
Leases	—		—		—		—		8,450		8,450
Total	$	8,836	$	4,459	$	17,077	$	30,372	$	6,712,154	$	6,742,526


	Analysis of Past Due Loans - As of December 31, 2023
(in thousands)	30-59 days		60-89 days		> 90 days		Total Past Due Loans		Current		Total
Commercial real estate:
CRE non-owner occupied	$	3,876	$	—	$	1,382	$	5,258	$	2,212,548	$	2,217,806
CRE owner occupied	34		—		247		281		956,159		956,440
Multifamily	—		—		—		—		949,502		949,502
Farmland	635		3,798		2,052		6,485		264,569		271,054
Total commercial real estate loans	4,545		3,798		3,681		12,024		4,382,778		4,394,802
Consumer:
SFR 1-4 1st DT liens	141		1,449		490		2,080		881,358		883,438
SFR HELOCs and junior liens	16		—		623		639		356,174		356,813
Other	148		40		30		218		72,799		73,017
Total consumer loans	305		1,489		1,143		2,937		1,310,331		1,313,268
Commercial and industrial	244		605		1,654		2,503		583,952		586,455
Construction	—		—		—		—		347,198		347,198
Agriculture production	593		878		33		1,504		142,993		144,497
Leases	447		—		—		447		7,803		8,250
Total	$	6,134	$	6,770	$	6,511	$	19,415	$	6,775,055	$	6,794,470


	Non Accrual Loans
	As of June 30, 2024						As of December 31, 2023
(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	$	4,882	$	4,882	$	—	$	2,024	$	2,024	$	—
CRE owner occupied	3,426		3,426		—		3,994		3,994		—
Multifamily	—		—		—		—		—		—
Farmland	13,071		13,071		—		5,996		14,484		—
Total commercial real estate loans	21,379		21,379		—		12,014		20,502		—
Consumer:
SFR 1-4 1st DT liens	4,929		5,189		—		2,808		2,811		—
SFR HELOCs and junior liens	3,039		3,291		—		3,281		3,571		—
Other	40		72		—		39		105		—
Total consumer loans	8,008		8,552		—		6,128		6,487		—
Commercial and industrial	1,504		2,351		272		1,379		2,503		10
Construction	63		63		—		67		67		—
Agriculture production	138		157		—		—		2,322		—
Leases	—		—		—		—		—		—
Sub-total	31,092		32,502		272		19,588		31,881		10
Less: Guaranteed loans	(788)		—		—		(766)		(878)		—
Total, net	$	30,304	$	32,502	$	272	$	18,822	$	31,003	$	10

Interest income on non accrual loans that would have been recognized during the three months ended June 30, 2024 and 2023, if all such loans had been current in accordance with their original terms, totaled $0.6 million and $1.0 million, respectively. Interest income actually recognized on these originated loans during the three months ended June 30, 2024 and 2023 was $0.0 million and $0.68 million, respectively.

Interest income on non accrual loans that would have been recognized during the six months ended June 30, 2024 and 2023, if all such loans had been current in accordance with their original terms, totaled $1.4 million and $1.3 million, respectively. Interest income actually recognized on these originated loans during the six months ended June 30, 2024 and 2023 was $0.1 million and $0.7 million, respectively.


	As of June 30, 2024
(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	$	3,517	$	373	$	—	$	992	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	4,882
CRE owner occupied	143		26		285		2,972		—		—		—		—		—		—		—		3,426
Multifamily	—		—		—		—		—		—		—		—		—		—		—		—
Farmland	—		—		—		—		—		13,071		—		—		—		—		—		13,071
Total commercial real estate loans	3,660		399		285		3,964		—		13,071		—		—		—		—		—		21,379
Consumer:
SFR 1-4 1st DT liens	—		—		—		—		—		—		5,183		—		—		—		—		5,183
SFR HELOCs and junior liens	—		—		—		—		—		—		1,156		1,883		—		—		—		3,039
Other	—		—		—		—		—		—		—		—		63		—		—		63
Total consumer loans	—		—		—		—		—		—		6,339		1,883		63		—		—		8,285
Commercial and industrial	—		—		—		—		—		—		—		—		—		1,355		996		2,351
Construction	—		—		—		—		—		—		63		—		—		—		—		63
Agriculture production	—		—		—		138		—		—		—		—		—		—		19		157
Leases	—		—		—		—		—		—		—		—		—		—		—		—
Total	$	3,660	$	399	$	285	$	4,102	$	—	$	13,071	$	6,402	$	1,883	$	63	$	1,355	$	1,015	$	32,235


	As of December 31, 2023
(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	$	124	$	615	$	519	$	766	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	2,024
CRE owner occupied	614		—		297		3,083		—		—		—		—		—		—		—		3,994
Multifamily	—		—		—		—		—		—		—		—		—		—		—		—
Farmland	—		—		—		635		—		13,849		—		—		—		—		—		14,484
Total commercial real estate loans	738		615		816		4,484		—		13,849		—		—		—		—		—		20,502
Consumer:
SFR 1-4 1st DT liens	—		—		—		—		—		—		2,808		—		—		—		—		2,808
SFR HELOCs and junior liens	—		—		—		—		—		—		1,816		1,467		—		—		—		3,283
Other	—		—		—		—		—		—		—		—		95		—		—		95
Total consumer loans	—		—		—		—		—		—		4,624		1,467		95		—		—		6,186
Commercial and industrial	—		—		—		—		—		—		—		—		—		1,712		791		2,503
Construction	—		—		—		—		—		—		67		—		—		—		—		67
Agriculture production	—		—		—		2,288		—		—		—		—		—		—		33		2,321
Leases	—		—		—		—		—		—		—		—		—		—		—		—
Total	$	738	$	615	$	816	$	6,772	$	—	$	13,849	$	4,691	$	1,467	$	95	$	1,712	$	824	$	31,579

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 months ended
	June 30, 2024						June 30, 2023
(in thousands)	Combination - Term Extension/Rate Change		Payment Delay/Term Extension		Total % of Loans Outstanding		Payment Delay/Term Extension		Total % of Loans Outstanding



Multifamily	$	—	$	295	0.03	%	$	—	—	%







Commercial and industrial	—		166		0.03		177		0.03



Total	$	—	$	461	0.01	%	$	177	0.03	%


	For the six months ended
	June 30, 2024						June 30, 2023
(in thousands)	Combination - Term Extension/Rate Change		Payment Delay/Term Extension		Total % of Loans Outstanding		Payment Delay/Term Extension		Total % of Loans Outstanding

CRE non-owner occupied	$	211	$	—	0.01	%	$	—	—	%

Multifamily	—		295		0.29		—		—




SFR HELOCs and junior liens	—		41		0.01		—		—


Commercial and industrial	—		682		0.12		177		0.03



Total	$	211	$	1,018	0.02	%	$	177	0.03	%

Three months ended June 30, 2024

Modification Type

Loan Type

Financial Effect

Payment delay / term extension

Multifamily

Added 12 months to the life of the loan

Payment delay / term extension

Commercial and industrial

Added a weighted average 60 months to the life of the loans

Six months ended June 30, 2024

Modification Type

Loan Type

Financial Effect

Combination - Term extension / rate change

CRE non-owner occupied

Added 120 months to the life of the loan; converted from variable to fixed interest rate

Payment delay / term extension

SFR HELOCs and junior liens

Added 60 months to the life of the loan

Payment delay / term extension

Commercial and industrial

Added a weighted average 49 months to the life of the loans

During the six months ended June 30, 2024 and June 30, 2023, respectively, there were no loans with payment defaults by borrowers experiencing financial difficulty which had material modifications in rate, term or principal forgiveness during the twelve months prior to default.