Loans Receivable - As of and prior to December 31, 2020, loans receivable were accounted for under the incurred loss model. As of January 1, 2021, portfolio loans are accounted for under the expected loss model. Accordingly, some of the information presented is not comparable from period to period. See Note 1b. “Authoritative Accounting Guidance - Adoption of New Accounting Standards” for additional information. The following table sets forth the composition of the Company’s loan portfolio segments, including net deferred fees, as of September 30, 2021 and December 31, 2020:

As of each of September 30, 2021 and December 31, 2020, loan balances of approximately $2.6 billion, were pledged to secure borrowings from the FHLB of New York.

Loans held-for-sale - The following table sets forth the composition of the Company’s loans held-for-sale portfolio as of September 30, 2021 and December 31, 2020:

Loans Receivable on Nonaccrual Status - The following tables present nonaccrual loans with an ACL as of September 30, 2021 and nonaccrual loans without an ACL as of September 30, 2021:

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

Note 5. Loans and the Allowance for Credit Losses – (continued)

The following tables present total nonaccrual loans included in loans receivable by loan class as of December 31, 2020 (dollars in thousands):

	December 31,
	2020

Commercial	$	33,019
Commercial real estate		10,111
Commercial construction		14,015
Residential real estate		4,551
Consumer		-
Total nonaccrual loans	$	61,696

Nonaccrual loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and loans individually evaluated for impairment.

Credit Quality Indicators - The Company continuously monitors the credit quality of its loans receivable. In addition to its internal monitoring, the Company utilizes the services of a third-party loan review firm to periodically validate the credit quality of its loans receivable on a sample basis. Credit quality is monitored by reviewing certain credit quality indicators. Assets classified as “Pass” are deemed to possess average to superior credit quality, requiring no more than normal attention. Assets classified as “Special Mention” have generally acceptable credit quality yet possess higher risk characteristics/circumstances than satisfactory assets. Such conditions include strained liquidity, slow pay, stale financial statements, or other conditions that require more stringent attention from the lending staff. These conditions, if not corrected, may weaken the loan quality or inadequately protect the Company’s credit position at some future date. Assets are classified as “Substandard” if the asset has a well-defined weakness that requires management’s attention to a greater degree than for loans classified as special mention. Such weakness, if left uncorrected, could possibly result in the compromised ability of the loan to perform to contractual requirements. An asset is classified as “Doubtful” if it is inadequately protected by the net worth and/or paying capacity of the obligor or of the collateral, if any, that secures the obligation. Assets classified as doubtful include assets for which there is a “distinct possibility” that a degree of loss will occur if the inadequacies are not corrected.

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CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

Note 5. Loans and the Allowance for Credit Losses – (continued)

We evaluate whether a modification, extension or renewal of a loan is a current period origination in accordance with GAAP. Generally, loans up for renewal are subject to a full credit evaluation before the renewal is granted and such loans are considered current period originations for purpose of the table below. As of September 30, 2021, our loans based on year of origination and risk designation are as follows (dollars in thousands):

	Term loans amortized cost basis by origination year												Revolving		Total Gross
	2021		2020		2019		2018		2017		Prior		Loans		Loans
Commercial
Pass	$	362,839	$	78,941	$	73,202	$	60,881	$	98,178	$	118,326	$	465,494	$	1,257,861
Special mention		-		-		225		904		5,653		4,198		13,787		24,767
Substandard		176		-		1,619		12,779		4,101		21,147		3,038		42,860
Doubtful		-		-		-		-		-		-		-		-
Total Commercial	$	363,015	$	78,941	$	75,046	$	74,564	$	107,932	$	143,671	$	482,319	$	1,325,488

Commercial Real Estate
Pass	$	1,178,056	$	587,923	$	446,299	$	479,741	$	514,973	$	944,052	$	171,963	$	4,323,007
Special mention		-		-		3,364		1,875		4,335		26,550		6,633		42,757
Substandard		1,942		4,500		657		18,861		-		36,112		8,790		70,862
Doubtful		-		-		-		-		-		-		-		-
Total Commercial Real Estate	$	1,179,998	$	592,423	$	450,320	$	500,477	$	519,308	$	1,006,714	$	187,386	$	4,436,626

Commercial Construction
Pass	$	1,405	$	7,370	$	37,492	$	2,600	$	2,247	$	490	$	486,404	$	538,008
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		14,888		14,888
Doubtful		-		-		-		-		-		-		-		-
Total Commercial Construction	$	1,405	$	7,370	$	37,492	$	2,600	$	2,247	$	490	$	501,292	$	552,896

Residential Real Estate
Pass	$	18,387	$	30,704	$	25,544	$	29,503	$	30,577	$	77,427	$	46,227	$	258,369
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		199		-		8,492		3,733		12,424
Doubtful		-		-		-		-		-		-		-		-
Total Residential Real Estate	$	18,387	$	30,704	$	25,544	$	29,702	$	30,577	$	85,919	$	49,960	$	270,793

Consumer
Pass	$	-	$	96	$	50	$	26	$	35	$	1,761	$	125	$	2,093
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total Consumer	$	-	$	96	$	50	$	26	$	35	$	1,761	$	125	$	2,093

Total
Pass	$	1,560,687	$	705,034	$	582,587	$	572,751	$	646,010	$	1,142,056	$	1,170,213	$	6,379,338
Special mention		-		-		3,589		2,779		9,988		30,748		20,420		67,524
Substandard		2,118		4,500		2,276		31,839		4,101		65,751		30,449		141,034
Doubtful		-		-		-		-		-		-		-		-
Grand Total	$	1,562,805	$	709,534	$	588,452	$	607,369	$	660,099	$	1,238,555	$	1,221,082	$	6,587,896

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

Note 5. Loans and the Allowance for Credit Losses – (continued)

The following table presents information about the loan credit quality by loan class of gross loans (which exclude net deferred fees) as of December 31, 2020:

	December 31, 2020
	Pass		Special Mention		Substandard		Doubtful		Total
	(dollars in thousands)
Commercial	$	1,447,097	$	30,725	$	43,930	$	215	$	1,521,967
Commercial real estate		3,700,498		49,143		33,909		-		3,783,550
Commercial construction		587,266		-		30,481		-		617,747
Residential real estate		311,174		-		11,390		-		322,564
Consumer		1,853		-		-		-		1,853
Gross loans	$	6,047,888	$	79,868	$	119,710	$	215	$	6,247,681

Collateral Dependent Loans: Loans which meet certain criteria are individually evaluated as part of the process of calculating the allowance for credit losses. The evaluation is determined on an individual basis using the fair value of the collateral as of the reporting date.

The following table presents collateral dependent loans that were individually evaluated for impairment as of September 30, 2021:

	September 30, 2021

	Real
	Estate		Other		Total
	(dollars in thousands)
Commercial	$	6,778	$	26,175	$	32,953
Commercial real estate		56,622		-		56,622
Commercial construction		12,582		-		12,582
Residential real estate		10,258		-		10,258
Consumer		-		-		-
Total	$	86,240	$	26,175	$	112,415

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

Note 5. Loans and the Allowance for Credit Losses – (continued)

Impaired loans - Impaired loans disclosures presented below as of December 31, 2020 and as of and for the three and nine months ended September 30, 2020 represent requirements prior to the adoption of CECL on January 1, 2021.

The following table provides an analysis of the impaired loans by class as of the year ended December 31, 2020:

	December 31, 2020
			Unpaid
	Recorded		Principal		Related
	Investment		Balance		Allowance
No related allowance recorded	(dollars in thousands)
Commercial	$	11,325	$	11,835
Commercial real estate		13,105		13,449
Commercial construction		24,284		24,907
Residential real estate		5,378		5,723
Consumer		-		-
Total (no related allowance)	$	54,092	$	55,914

With an allowance recorded

Commercial	$	23,736	$	69,122	$	12,985
Commercial real estate		2,722		2,722		1,329
Total (with allowance)	$	26,458	$	71,844	$	14,314

Total
Commercial	$	35,061	$	80,957	$	12,985
Commercial real estate		15,827		16,171		1,329
Commercial construction		24,284		24,907		-
Residential real estate		5,378		5,723		-
Consumer		-		-		-
Total	$	80,550	$	127,758	$	14,314

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CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

Note 5. Loans and the Allowance for Credit Losses – (continued)

The following table provides an analysis related to the average recorded investment and interest income recognized on impaired loans by class as of and for the three months and nine months ended September 30, 2020 (dollars in thousands):

	Three Months Ended September 30,					Nine Months Ended September 30,
		2020				2020
		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Impaired loans (no allowance)

Commercial		$	12,266	$	50	$	12,100	$	150
Commercial real estate			12,460		74		12,415		229
Commercial construction			21,297		91		21,149		262
Residential real estate			4,011		16		3,761		16

Total		$	50,034	$	231	$	49,425	$	657

Impaired loans (allowance):

Commercial		$	23,024	$	-	$	23,195	$	-
Commercial real estate			2,722		-		2,722		-
Commercial construction			2,934		-		2,934		-
Residential real estate			261		5		262		5

Total		$	28,941	$	5	$	29,113	$	5

Total impaired loans:
Commercial		$	35,290	$	50	$	35,295	$	150
Commercial real estate			15,182		74		15,137		229
Commercial construction			24,231		91		24,083		262
Residential real estate			4,272		21		4,023		21

Total		$	78,975	$	236	$	78,538	$	662

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CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

Note 5. Loans and the Allowance for Credit Losses – (continued)

Aging Analysis - The following table provides an analysis of the aging of the loans by class, excluding net deferred fees, that are past due as of September 30, 2021 and December 31, 2020 (dollars in thousands):

	September 30, 2021
	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due and Still Accruing		Nonaccrual		Total Past Due and Nonaccrual		Current		Gross Loans
Commercial	$	391	$	417	$	4,463	$	30,479	$	35,750	$	1,289,738	$	1,325,488
Commercial real Estate		-		1,694		1,860		28,578		32,132		4,404,494		4,436,626
Commercial construction		-		-		-		3,336		3,336		549,560		552,896
Residential real Estate		338		-		8,360		3,566		12,264		258,529		270,793
Consumer		-		-		-		-		-		2,093		2,093
Total	$	729	$	2,111	$	14,683	$	65,959	$	83,482	$	6,504,414	$	6,587,896

90 days or greater past due and still accruing category reflects purchased credit-deteriorated loans, net of fair value marks, which accrete income per the valuation at date of acquisition.

	December 31, 2020
	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due and Still Accruing		Nonaccrual		Total Past Due and Nonaccrual		Current		Total Loans Receivable
Commercial	$	1,445	$	558	$	3,182	$	33,019	$	38,204	$	1,483,763	$	1,521,967
Commercial real estate		13,258		4,140		5,555		10,111		33,064		3,750,486		3,783,550
Commercial construction		2,472		-		-		14,015		16,487		601,260		617,747
Residential real estate		1,367		241		4,084		4,551		10,243		312,321		322,564
Consumer		2		-		-		-		2		1,851		1,853
Total	$	18,544	$	4,939	$	12,821	$	61,696	$	98,000	$	6,149,681	$	6,247,681

90 days or greater past due and still accruing category reflects purchased credit-deteriorated loans, net of fair value marks, which accrete income per the valuation at date of acquisition.

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

Note 5. Loans and the Allowance for Credit Losses – (continued)

The following tables detail, at the period-end presented, the amount of gross loans (excluding loans held-for-sale) that are evaluated individually, and collectively, for impairment, those acquired with deteriorated quality, and the related portion of the ACL that are allocated to each loan portfolio segment:

	September 30, 2021
			Commercial		Commercial		Residential
	Commercial		real estate		construction		real estate		Consumer		Total
	(dollars in thousands)
ACL
Individually evaluated for impairment	$	14,630	$	1,199	$	-	$	66	$	-	$	15,895
Collectively evaluated for impairment		9,487		40,222		3,702		3,302		8		56,721
Acquired with deteriorated credit quality individually analyzed		3,219		1,921		-		230		-		5,370
Total	$	27,336	$	43,342	$	3,702	$	3,598	$	8	$	77,986

Gross loans
Individually evaluated for impairment	$	33,970	$	50,642	$	12,582	$	6,017	$	-	$	103,211
Collectively evaluated for impairment		1,286,337		4,380,004		540,314		260,536		2,093		6,469,284
Acquired with deteriorated credit quality individually analyzed		5,181		5,980		-		4,240		-		15,401
Total	$	1,325,488	$	4,436,626	$	552,896	$	270,793	$	2,093	$	6,587,896

	December 31, 2020
			Commercial		Commercial		Residential
	Commercial		real estate		construction		real estate		Consumer		Unallocated		Total
	(dollars in thousands)
Allowance for loan losses
Individually evaluated for impairment	$	12,985	$	1,329	$	-	$	-	$	-	$	-	$	14,314
Collectively evaluated for impairment		15,412		33,373		7,787		1,928		4		568		59,072
Acquired portfolio		46		4,628		407		759		-		-		5,840
Acquired with deteriorated credit quality		-		-		-		-		-		-		-
Total	$	28,443	$	39,330	$	8,194	$	2,687	$	4	$	568	$	79,226

Gross loans
Individually evaluated for impairment	$	35,061	$	15,827	$	24,284	$	5,378	$	-			$	80,550
Collectively evaluated for impairment		1,414,626		2,959,978		574,118		241,925		1,627				5,192,274
Acquired portfolio		68,402		802,190		19,345		71,177		226				961,340
Acquired with deteriorated credit quality		3,878		5,555		-		4,084		-				13,517
Total	$	1,521,967	$	3,783,550	$	617,747	$	322,564	$	1,853			$	6,247,681

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

Note 5. Loans and the Allowance for Credit Losses – (continued)

Activity in the Company’s ACL for loans for the three and nine months ended September 30, 2021 is summarized in the table below. Day 1 effect of CECL presented in the nine-months table below reflect adjustments recorded through retained earnings to adopt the CECL standard and the increase to the ACL for loans associated with nonaccretable purchase accounting marks on loans that were classified as PCI as of December 31, 2020.

	Three Months Ended September 30, 2021
				Commercial			Commercial			Residential
	Commercial			real estate			construction			real estate			Consumer			Unallocated		Total
	(dollars in thousands)
Balance as of June 30, 2021	$	25,567		$	43,815		$	4,927		$	4,366		$	9		$	-	$	78,684


Charge-offs		(254	)		(1,473	)		-			-			-			-		(1,727	)

Recoveries		1			85			-			20			7			-		113

(Reversal of) provision for credit losses - loans		2,022			915			(1,225	)		(788	)		(8	)		-		916
Balance as of September 30, 2021	$	27,336		$	43,342		$	3,702		$	3,598		$	8		$	-	$	77,986

	Nine Months Ended September 30, 2021
				Commercial			Commercial			Residential
	Commercial			real estate			construction			real estate			Consumer			Unallocated			Total
	(dollars in thousands)
Balance as of December 31, 2020	$	28,443		$	39,330		$	8,194		$	2,687		$	4		$	568		$	79,226


Day 1 effect of CECL		(4,225	)		9,605			(961	)		2,697			9			(568	)		6,557

Balance as of January 1, 2021 as adjusted for changes in accounting principle		24,218			48,935			7,233			5,384			13			-			85,783

Charge-offs		(304	)		(1,628	)		-			(7	)		-			-			(1,939	)

Recoveries		74			85			-			20			9			-			188

Provision for (reversal of) credit losses - loans		3,348			(4,050	)		(3,531	)		(1,799	)		(14	)		-			(6,046	)
Balance as of September 30, 2021	$	27,336		$	43,342		$	3,702		$	3,598		$	8		$	-		$	77,986

On January 1, 2021, the Company adopted CECL, which replaced the incurred loss method we used in prior periods for determining the provision for credit losses and the ACL. Under CECL, we record an expected loss of all cash flows we do not expect to collect at the inception of the loan. The adoption of CECL resulted in an increase in our ACL for loans of $6.6 million, which did not impact our consolidated income statement.

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

Note 5. Loans and the Allowance for Credit Losses – (continued)

	Three Months Ended September 30, 2020
				Commercial		Commercial			Residential
	Commercial			real estate		construction			real estate			Consumer			Unallocated			Total
	(dollars in thousands)
Balance as of June 30, 2020	$	9,345		$	22,655	$	8,026		$	1,690		$	5		$	27,003		$	68,724

Charge-offs		(48	)		-		-			(209	)		-			-			(257	)

Recoveries		-			800		-			-			-			-			800

Provision for (reversal of) credit losses - loans		14,861			16,623		(1,044	)		1,019			(2	)		(26,457	)		5,000

Balance as of September 30, 2020	$	24,158		$	40,078	$	6,982		$	2,500		$	3		$	546		$	74,267

	Nine Months Ended September 30, 2020
				Commercial		Commercial			Residential
	Commercial			real estate		construction			real estate			Consumer			Unallocated		Total
	(dollars in thousands)
Balance as of December 31, 2019	$	8,349		$	20,853	$	7,304		$	1,685		$	3		$	99	$	38,293

Charge-offs		(552	)		-		-			(278	)		(3	)		-		(833	)

Recoveries		2			802		-			-			3			-		807

Provision for (reversal of) credit losses - loans		16,359			18,423		(322	)		1,093			-			447		36,000

Balance as of September 30, 2020	$	24,158		$	40,078	$	6,982		$	2,500		$	3		$	546	$	74,267

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

Note 5. Loans and the Allowance for Credit Losses – (continued)

Troubled Debt Restructurings

Loans are considered to have been modified in a troubled debt restructuring (“TDR”) when, except as discussed below, due to a borrower’s financial difficulties, the Company makes certain concessions to the borrower that it would not otherwise consider. Modifications may include interest rate reductions, maturity extensions, principal or interest forgiveness, forbearance, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. Generally, a nonaccrual loan that has been modified in a TDR remains on nonaccrual status for a period of nine months to demonstrate that the borrower is able to meet the terms of the modified loan. However, performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of loan modification or after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is uncertain, the loan remains on nonaccrual status.

As of September 30, 2021, there were no commitments to lend additional funds to borrowers whose loans were on nonaccrual status or were contractually past due 90 days or greater and still accruing interest, or whose terms have been modified in a TDR.

As of September 30, 2021, TDRs totaled $79.7 million, of which $38.5 million were on nonaccrual status and $41.2 million were classified as accruing and were performing under their restructured terms. As of December 31, 2020, TDRs totaled $49.4 million, of which $25.7 million were on nonaccrual status and $23.7 million were classified as accruing and were performing under their restructured terms. The Company has allocated $10.5 million and $4.4 million of specific allowance related to TDRs as of September 30, 2021 and September 30, 2020, respectively.

The following table presents loans by class modified as TDRs that occurred during the nine months ended September 30, 2021:

			Pre-Modification Outstanding		Post-Modification Outstanding
	Number of Loans		Recorded Investment		Recorded Investment
Troubled debt restructurings:	(dollars in thousands)
Commercial		4	$	1,276	$	1,276
Commercial real estate		10		35,595		35,595
Commercial construction		1		1,641		1,641
Residential real estate		3		1,758		1,758
Total		18	$	40,270	$	40,270

The loans modified as TDRs during the nine months ended September 30, 2021 included maturity extensions and interest rate reductions.

There were no loans modified as TDRs during the nine months ended September 30, 2020. There were no TDRs for which there was a payment default within twelve months following the modification during the three months ended and nine months ended September 30, 2021 and September 30, 2020.

In March 2020, various regulatory agencies, including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation, (“the agencies”) issued an interagency statement on loan modifications and reporting for financial institutions working with customers affected by COVID-19. The interagency statement was effective immediately and impacted accounting for loan modifications. The agencies confirmed with the staff of the FASB that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief, are not to be considered TDRs. This includes short-term (e.g., three to nine months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. Additionally, the statement allows for the Company to extend deferrals for an additional term at the option of the Company. Provisions of the CARES Act largely mirrored the provisions of the interagency statement, providing that modified loans would not be considered TDR’s if they were performing at year-end 2019, and the other conditions set forth in the interagency statement were met. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented or at year-end 2019. As of September 30, 2021, the Bank had 10 deferred loans totaling $10.3 million, compared to 113 deferred loans totaling $207.0 million as of December 31, 2020 that are not considered TDRs.

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

Note 5. Loans and the Allowance for Credit Losses – (continued)

The following table sets forth the composition of these loans by loan segments as of September 30, 2021:

As of September 30, 2021, there were no deferred loans that were delinquent or on nonaccrual status. As of September 30, 2021, $5.5 million of deferred loans were risk rated “special mention” or worse. The Company evaluates its deferred loans after the initial deferral period and will either return the deferred loan to its original loan terms or the loan will be reassessed at that time to determine if a further deferment should be granted and if a downgrade in risk rating is appropriate.

ACL for Unfunded Commitments

The Company has recorded an ACL for unfunded credit commitments, which was recorded in other liabilities. The provision is recorded within the (reversal of) provision for credit losses on the Company’s income statement. The following table presents the ACL for unfunded commitments for the three and nine months ended September 30, 2021 (dollars in thousands):

	Three Months Ended
	September 30, 2021

Balance as of beginning of period	$	2,380
Provision for (reversal of) credit losses - unfunded commitments		184
Balance as of end of period	$	2,564

	Nine Months Ended
	September 30, 2021

Balance as of beginning of period	$	-
Day 1 Effect of CECL		2,833
Provision for (reversal of) credit losses - unfunded commitments		(269)
Balance as of end of period	$	2,564

Components of (Reversal of) Provision for Credit Losses

The following table summarizes the provision for (reversal of) provision for credit losses for the three and nine months ended September 30, 2021 (dollars in thousands):

	Three Months Ended September 30, 2021		Nine Months Ended September 30, 2021

Provision for (reversal of) credit losses - loans	$	916	$	(6,046)
Provision for (reversal of) credit losses - unfunded commitments		184		(269)
Provision for (reversal of) credit losses	$	1,100	$	(6,315)

Number of Loans

Principal Balance

(dollars in thousands)

Commercial

Commercial real estate