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Loans and Allowance for Credit Losses | 6 Months Ended
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Jun. 30, 2022
Receivables [Abstract] |
Loans and Allowance for Credit Losses | Loans and Allowance for Credit Losses Loans Held for Sale Loans held for sale are comprised entirely of 1-4 family residential mortgage loans as of June 30, 2022 and December 31, 2021. Loans Held for Investment The following table presents amortized cost and unpaid principal balance of loans for the periods indicated:
| June 30, 2022 | December 31, 2021
(In Thousands) | Amortized Cost | Unpaid Principal | Difference | Amortized Cost | Unpaid Principal | Difference
Commercial & industrial loans | $394,841 |  | $397,154 |  | ($2,313) |  | $448,338 |  | $454,106 |  | ($5,768) |
Commercial real estate: |  |  |  |  |  |
Owner occupied properties | 313,174 |  | 314,761 |  | (1,587) |  | 300,200 |  | 301,623 |  | (1,423) |
Non-owner occupied and multifamily properties | 446,592 |  | 449,987 |  | (3,395) |  | 435,311 |  | 438,631 |  | (3,320) |
Residential real estate: |  |  |  |  |  |
1-4 family residential properties secured by first liens | 37,298 |  | 37,346 |  | (48) |  | 32,542 |  | 32,602 |  | (60) |
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens | 21,953 |  | 21,821 |  | 132 |  | 19,610 |  | 19,489 |  | 121 |
1-4 family residential construction loans | 43,915 |  | 44,215 |  | (300) |  | 36,222 |  | 36,542 |  | (320) |
Other construction, land development and raw land loans | 87,163 |  | 87,669 |  | (506) |  | 88,094 |  | 88,604 |  | (510) |
Obligations of states and political subdivisions in the US | 24,005 |  | 24,152 |  | (147) |  | 16,403 |  | 16,565 |  | (162) |
Agricultural production, including commercial fishing | 29,482 |  | 29,638 |  | (156) |  | 27,959 |  | 28,082 |  | (123) |
Consumer loans | 4,092 |  | 4,054 |  | 38 |  | 4,801 |  | 4,763 |  | 38 |
Other loans | 3,194 |  | 3,208 |  | (14) |  | 4,406 |  | 4,422 |  | (16) |
Total | 1,405,709 |  | 1,414,005 |  | (8,296) |  | 1,413,886 |  | 1,425,429 |  | (11,543) |
Allowance for credit losses | (11,537) |  |  |  | (11,739) |  |  |
| $1,394,172 |  | $1,414,005 |  | ($8,296) |  | $1,402,147 |  | $1,425,429 |  | ($11,543) |
The difference between the amortized cost and unpaid principal balance is net deferred origination fees totaling $8.3 million and $11.5 million at June 30, 2022 and December 31, 2021, respectively. Accrued interest on loans, which is excluded from the amortized cost of loans held for investment, totaled $5.3 million and $5.5 million at June 30, 2022 and December 31, 2021, respectively, and was included in other assets in the Consolidated Balance Sheets. Amortized cost in the above table includes $31.9 million and $118.2 million as of June 30, 2022 and December 31, 2021, respectively, in Paycheck Protection Program ("PPP") loans administered by the U.S. Small Business Administration ("SBA") within the Commercial & industrial loan segment. Allowance for Credit Losses The activity in the ACL related to loans held for investment is as follows:
Three Months Ended June 30, | Beginning Balance |  | Credit Loss Expense (Benefit) | Charge-offs | Recoveries | Ending Balance
| (In Thousands)
2022 |  |  |  |  |  |
Commercial & industrial loans | $2,901 |  |  | $123 |  | ($166) |  | $103 |  | $2,961 |
Commercial real estate: |  |  |  |  |  |
Owner occupied properties | 2,513 |  |  | 60 |  | — |  | — |  | 2,573 |
Non-owner occupied and multifamily properties | 3,063 |  |  | 44 |  | — |  | — |  | 3,107 |
Residential real estate: |  |  |  |  |  |
1-4 family residential properties secured by first liens | 510 |  |  | 110 |  | — |  | — |  | 620 |
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens | 301 |  |  | 17 |  | — |  | 9 |  | 327 |
1-4 family residential construction loans | 210 |  |  | 21 |  | — |  | — |  | 231 |
Other construction, land development and raw land loans | 1,550 |  |  | (88) |  | — |  | — |  | 1,462 |
Obligations of states and political subdivisions in the US | 52 |  |  | 7 |  | — |  | — |  | 59 |
Agricultural production, including commercial fishing | 128 |  |  | (8) |  | — |  | 7 |  | 127 |
Consumer loans | 75 |  |  | (12) |  | — |  | 1 |  | 64 |
Other loans | 7 |  |  | (1) |  | — |  | — |  | 6 |
Total | $11,310 |  |  | $273 |  | ($166) |  | $120 |  | $11,537 |
2021 |  |  |  |  |  |
Commercial & industrial loans | $4,269 |  |  | $105 |  | ($110) |  | $27 |  | $4,291 |
Commercial real estate: |  |  |  |  |  |
Owner occupied properties | 3,366 |  |  | (28) |  | — |  | 2 |  | 3,340 |
Non-owner occupied and multifamily properties | 3,704 |  |  | 137 |  | — |  | — |  | 3,841 |
Residential real estate: |  |  |  |  |  |
1-4 family residential properties secured by first liens | 813 |  |  | (183) |  | — |  | — |  | 630 |
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens | 342 |  |  | (12) |  | — |  | 10 |  | 340 |
1-4 family residential construction loans | 260 |  |  | (29) |  | — |  | — |  | 231 |
Other construction, land development and raw land loans | 1,821 |  |  | (151) |  | — |  | — |  | 1,670 |
Obligations of states and political subdivisions in the US | 36 |  |  | 3 |  | — |  | — |  | 39 |
Agricultural production, including commercial fishing | 46 |  |  | 4 |  | — |  | 7 |  | 57 |
Consumer loans | 104 |  |  | (10) |  | — |  | — |  | 94 |
Other loans | 3 |  |  | 3 |  | — |  | — |  | 6 |
Total | $14,764 |  |  | ($161) |  | ($110) |  | $46 |  | $14,539 |
Six Months Ended June 30, | Beginning Balance |  | Credit Loss Expense (Benefit) | Charge-offs | Recoveries | Ending Balance
| (In Thousands)
2022 |  |  |  |  |  |
Commercial & industrial loans | $3,027 |  |  | $279 |  | ($461) |  | $116 |  | $2,961 |
Commercial real estate: |  |  |  |  |  |
Owner occupied properties | 3,176 |  |  | (603) |  | — |  | — |  | 2,573 |
Non-owner occupied and multifamily properties | 2,930 |  |  | 177 |  | — |  | — |  | 3,107 |
Residential real estate: |  |  |  |  |  |
1-4 family residential properties secured by first liens | 439 |  |  | 181 |  | — |  | — |  | 620 |
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens | 215 |  |  | 91 |  | — |  | 21 |  | 327 |
1-4 family residential construction loans | 120 |  |  | 111 |  | — |  | — |  | 231 |
Other construction, land development and raw land loans | 1,635 |  |  | (173) |  | — |  | — |  | 1,462 |
Obligations of states and political subdivisions in the US | 32 |  |  | 27 |  | — |  | — |  | 59 |
Agricultural production, including commercial fishing | 91 |  |  | 21 |  | — |  | 15 |  | 127 |
Consumer loans | 67 |  |  | (4) |  | — |  | 1 |  | 64 |
Other loans | 7 |  |  | (1) |  | — |  | — |  | 6 |
Total | $11,739 |  |  | $106 |  | ($461) |  | $153 |  | $11,537 |
2021 |  |  |  |  |  |
Commercial & industrial loans | $4,348 |  |  | $4 |  | ($273) |  | $212 |  | $4,291 |
Commercial real estate: |  |  |  |  |  |
Owner occupied properties | 3,579 |  |  | (243) |  | — |  | 4 |  | 3,340 |
Non-owner occupied and multifamily properties | 4,944 |  |  | (1,103) |  | — |  | — |  | 3,841 |
Residential real estate: |  |  |  |  |  |
1-4 family residential properties secured by first liens | 673 |  |  | (43) |  | — |  | — |  | 630 |
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens | 419 |  |  | (99) |  | — |  | 20 |  | 340 |
1-4 family residential construction loans | 454 |  |  | (223) |  | — |  | — |  | 231 |
Other construction, land development and raw land loans | 1,994 |  |  | (324) |  | — |  | — |  | 1,670 |
Obligations of states and political subdivisions in the US | 44 |  |  | (5) |  | — |  | — |  | 39 |
Agricultural production, including commercial fishing | 49 |  |  | (7) |  | — |  | 15 |  | 57 |
Consumer loans | 118 |  |  | (26) |  | — |  | 2 |  | 94 |
Other loans | 3 |  |  | 3 |  | — |  | — |  | 6 |
Total | $16,625 |  |  | ($2,066) |  | ($273) |  | $253 |  | $14,539 |
At June 30, 2022, as compared to March 31, 2022 and December 31, 2021, the Company forecasted a lower unemployment rate over the reasonable and supportable forecast period. In the second quarter, the ACL increased because an increase in loan balances more than offset the decrease in the forecast for unemployment, changes in the characteristics of loans, and a decrease in the ACL for loans individually evaluated. In the six months ending June 30, 2022, the ACL decreased as compared to the same six month period of 2021 because the decrease in the forecast for unemployment and changes in the characteristics of loans were only partially offset by increases in loan balances. Credit Quality Information As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management utilizes a loan risk grading system called the Asset Quality Rating (“AQR”) system to assign a risk classification to each of its loans. The risk classification is a dual rating system that contemplates both probability of default and risk of loss given default. Loans are graded on a scale of 1 to 10 and, loans graded 1 – 6 are considered “pass” grade loans. Loans graded 7 or higher are considered "classified" loans. A description of the general characteristics of the AQR risk classifications are as follows: Pass grade loans – 1 through 6: The borrower demonstrates sufficient cash flow to fund debt service, including acceptable profit margins, cash flows, liquidity and other balance sheet ratios. Historic and projected performance indicates that the borrower is able to meet obligations under most economic circumstances. The Company has competent management with an acceptable track record. The category does not include loans with undue or unwarranted credit risks that constitute identifiable weaknesses. Classified loans: Special Mention – 7: A "special mention" credit has weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset at some future date. Substandard – 8: A "substandard" credit is inadequately protected by the current worth and paying capacity of the obligor or by the collateral pledged, if any. Assets so classified must have a well-defined weakness, or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that Northrim Bank will sustain some loss if the deficiencies are not corrected. Doubtful – 9: An asset classified "doubtful" has all the weaknesses inherent in one that is classified "substandard-8" with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions, and values, highly questionable and improbable. The loan has substandard characteristics, and available information suggests that it is unlikely that the loan will be repaid in its entirety. Loss – 10: An asset classified "loss" is considered uncollectible and of such little value that its continuance on the books is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this basically worthless asset, even though partial recovery may be affected in the future. The following tables present the Company's portfolio of risk-rated loans by grade and by year of origination. Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal of loan constitutes a current period origination. Generally, current period renewals of credit are re-underwritten at the point of renewal and considered current period originations for purposes of the table below.
June 30, 2022 | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Total
| (In Thousands)
Commercial & industrial loans |  |  |  |  |  |  |
Pass | $97,229 |  | $126,148 |  | $50,617 |  | $21,259 |  | $29,661 |  | $57,889 |  | $382,803 |
Classified | 2,689 |  | 5,459 |  | — |  | 119 |  | 2,950 |  | 821 |  | 12,038 |
Total commercial & industrial loans | $99,918 |  | $131,607 |  | $50,617 |  | $21,378 |  | $32,611 |  | $58,710 |  | $394,841 |
Commercial real estate: |  |  |  |  |  |  |
Owner occupied properties |  |  |  |  |  |  |
Pass | $35,493 |  | $70,745 |  | $81,000 |  | $38,694 |  | $13,415 |  | $65,980 |  | $305,327 |
Classified | — |  | — |  | 1,331 |  | — |  | 498 |  | 6,018 |  | 7,847 |
Total commercial real estate owner occupied properties | $35,493 |  | $70,745 |  | $82,331 |  | $38,694 |  | $13,913 |  | $71,998 |  | $313,174 |
Non-owner occupied and multifamily properties |  |  |  |  |
Pass | $26,141 |  | $82,850 |  | $74,798 |  | $56,709 |  | $33,807 |  | $161,854 |  | $436,159 |
Classified | — |  | — |  | — |  | 277 |  | 6 |  | 10,150 |  | 10,433 |
Total commercial real estate non-owner occupied and multifamily properties | $26,141 |  | $82,850 |  | $74,798 |  | $56,986 |  | $33,813 |  | $172,004 |  | $446,592 |
Residential real estate: |  |  |  |  |  |  |
1-4 family residential properties secured by first liens |  |  |  |  |
Pass | $8,410 |  | $9,846 |  | $6,490 |  | $3,402 |  | $494 |  | $8,373 |  | $37,015 |
Classified | — |  | — |  | — |  | — |  | 90 |  | 193 |  | 283 |
Total residential real estate 1-4 family residential properties secured by first liens | $8,410 |  | $9,846 |  | $6,490 |  | $3,402 |  | $584 |  | $8,566 |  | $37,298 |
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens |  |
Pass | $3,219 |  | $5,467 |  | $2,570 |  | $2,861 |  | $3,447 |  | $4,109 |  | $21,673 |
Classified | — |  | — |  | — |  | — |  | 270 |  | 10 |  | 280 |
Total residential real estate 1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens | $3,219 |  | $5,467 |  | $2,570 |  | $2,861 |  | $3,717 |  | $4,119 |  | $21,953 |
1-4 family residential construction loans |  |  |  |  |  |  |
Pass | $21,804 |  | $8,522 |  | $441 |  | $481 |  | $— |  | $12,558 |  | $43,806 |
Classified | — |  | — |  | — |  | — |  | — |  | 109 |  | 109 |
Total residential real estate 1-4 family residential construction loans | $21,804 |  | $8,522 |  | $441 |  | $481 |  | $— |  | $12,667 |  | $43,915 |
Other construction, land development and raw land loans |  |  |  |
Pass | $5,651 |  | $41,340 |  | $19,578 |  | $9,402 |  | $3,396 |  | $5,945 |  | $85,312 |
Classified | — |  | — |  | — |  | — |  | 369 |  | 1,482 |  | 1,851 |
Total other construction, land development and raw land loans | $5,651 |  | $41,340 |  | $19,578 |  | $9,402 |  | $3,765 |  | $7,427 |  | $87,163 |
Obligations of states and political subdivisions in the US |  |  |  |
Pass | $285 |  | $9,669 |  | $2,667 |  | $1,864 |  | $282 |  | $9,238 |  | $24,005 |
Classified | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total obligations of states and political subdivisions in the US | $285 |  | $9,669 |  | $2,667 |  | $1,864 |  | $282 |  | $9,238 |  | $24,005 |
Agricultural production, including commercial fishing |  |  |  |
Pass | $3,549 |  | $18,683 |  | $3,764 |  | $678 |  | $1,073 |  | $1,735 |  | $29,482 |
Classified | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total agricultural production, including commercial fishing | $3,549 |  | $18,683 |  | $3,764 |  | $678 |  | $1,073 |  | $1,735 |  | $29,482 |
Consumer loans |  |  |  |  |  |  |
Pass | $770 |  | $499 |  | $541 |  | $397 |  | $306 |  | $1,570 |  | $4,083 |
Classified | — |  | — |  | — |  | — |  | — |  | 9 |  | 9 |
Total consumer loans | $770 |  | $499 |  | $541 |  | $397 |  | $306 |  | $1,579 |  | $4,092 |
Other loans |  |  |  |  |  |  |
Pass | $568 |  | $1,143 |  | $1,598 |  | $408 |  | $— |  | ($523) |  | $3,194 |
Classified | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total other loans | $568 |  | $1,143 |  | $1,598 |  | $408 |  | $— |  | ($523) |  | $3,194 |
Total loans |  |  |  |  |  |  |
Pass | $203,119 |  | $374,912 |  | $244,064 |  | $136,155 |  | $85,881 |  | $328,728 |  | $1,372,859 |
Classified | 2,689 |  | 5,459 |  | 1,331 |  | 396 |  | 4,183 |  | 18,792 |  | 32,850 |
Total loans | $205,808 |  | $380,371 |  | $245,395 |  | $136,551 |  | $90,064 |  | $347,520 |  | $1,405,709 |
Total pass loans | $203,119 |  | $374,912 |  | $244,064 |  | $136,155 |  | $85,881 |  | $328,728 |  | $1,372,859 |
Government guarantees | (4,441) |  | (62,412) |  | (11,051) |  | (13,290) |  | (3,117) |  | (4,898) |  | (99,209) |
Total pass loans, net of government guarantees | $198,678 |  | $312,500 |  | $233,013 |  | $122,865 |  | $82,764 |  | $323,830 |  | $1,273,650 |
Total classified loans | $2,689 |  | $5,459 |  | $1,331 |  | $396 |  | $4,183 |  | $18,792 |  | $32,850 |
Government guarantees | (2,420) |  | (4,913) |  | (1,198) |  | — |  | — |  | (9,818) |  | (18,349) |
Total classified loans, net government guarantees | $269 |  | $546 |  | $133 |  | $396 |  | $4,183 |  | $8,974 |  | $14,501 |
December 31, 2021 | 2021 | 2020 | 2019 | 2018 | 2017 | Prior | Total
| (In Thousands)
Commercial & industrial loans |  |  |  |  |  |  |
Pass | $227,376 |  | $54,478 |  | $29,846 |  | $37,339 |  | $23,205 |  | $44,554 |  | $416,798 |
Classified | 18,853 |  | 714 |  | 3,564 |  | 3,118 |  | 517 |  | 4,774 |  | 31,540 |
Total commercial & industrial loans | $246,229 |  | $55,192 |  | $33,410 |  | $40,457 |  | $23,722 |  | $49,328 |  | $448,338 |
Commercial real estate: |  |  |  |  |  |  |
Owner occupied properties |  |  |  |  |  |  |
Pass | $81,533 |  | $83,975 |  | $39,254 |  | $14,841 |  | $14,452 |  | $57,717 |  | $291,772 |
Classified | — |  | 1,399 |  | — |  | 522 |  | — |  | 6,507 |  | 8,428 |
Total commercial real estate owner occupied properties | $81,533 |  | $85,374 |  | $39,254 |  | $15,363 |  | $14,452 |  | $64,224 |  | $300,200 |
Non-owner occupied and multifamily properties |  |  |  |  |
Pass | $77,205 |  | $77,961 |  | $61,147 |  | $34,307 |  | $19,833 |  | $154,561 |  | $425,014 |
Classified | — |  | — |  | — |  | 10 |  | 10,286 |  | 1 |  | 10,297 |
Total commercial real estate non-owner occupied and multifamily properties | $77,205 |  | $77,961 |  | $61,147 |  | $34,317 |  | $30,119 |  | $154,562 |  | $435,311 |
Residential real estate: |  |  |  |  |  |  |
1-4 family residential properties secured by first liens |  |  |  |  |
Pass | $7,756 |  | $8,023 |  | $3,689 |  | $531 |  | $1,466 |  | $8,812 |  | $30,277 |
Classified | 417 |  | 1,077 |  | 472 |  | 90 |  | — |  | 209 |  | 2,265 |
Total residential real estate 1-4 family residential properties secured by first liens | $8,173 |  | $9,100 |  | $4,161 |  | $621 |  | $1,466 |  | $9,021 |  | $32,542 |
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens |  |
Pass | $5,806 |  | $2,535 |  | $3,229 |  | $3,464 |  | $259 |  | $4,046 |  | $19,339 |
Classified | — |  | — |  | — |  | 259 |  | — |  | 12 |  | 271 |
Total residential real estate 1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens | $5,806 |  | $2,535 |  | $3,229 |  | $3,723 |  | $259 |  | $4,058 |  | $19,610 |
1-4 family residential construction loans |  |  |  |  |  |  |
Pass | $21,409 |  | $1,056 |  | $1,707 |  | $62 |  | $— |  | $11,879 |  | $36,113 |
Classified | — |  | — |  | — |  | — |  | 109 |  | — |  | 109 |
Total residential real estate 1-4 family residential construction loans | $21,409 |  | $1,056 |  | $1,707 |  | $62 |  | $109 |  | $11,879 |  | $36,222 |
Other construction, land development and raw land loans |  |  |  |
Pass | $39,624 |  | $26,458 |  | $11,044 |  | $3,315 |  | $139 |  | $5,544 |  | $86,124 |
Classified | — |  | — |  | — |  | 460 |  | — |  | 1,510 |  | 1,970 |
Total other construction, land development and raw land loans | $39,624 |  | $26,458 |  | $11,044 |  | $3,775 |  | $139 |  | $7,054 |  | $88,094 |
Obligations of states and political subdivisions in the US |  |  |  |
Pass | $4,120 |  | $812 |  | $1,875 |  | $343 |  | $2,733 |  | $6,520 |  | $16,403 |
Classified | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total obligations of states and political subdivisions in the US | $4,120 |  | $812 |  | $1,875 |  | $343 |  | $2,733 |  | $6,520 |  | $16,403 |
Agricultural production, including commercial fishing |  |  |  |
Pass | $19,970 |  | $3,929 |  | $810 |  | $1,118 |  | $741 |  | $1,391 |  | $27,959 |
Classified | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total agricultural production, including commercial fishing | $19,970 |  | $3,929 |  | $810 |  | $1,118 |  | $741 |  | $1,391 |  | $27,959 |
Consumer loans |  |  |  |  |  |  |
Pass | $873 |  | $815 |  | $653 |  | $403 |  | $291 |  | $1,766 |  | $4,801 |
Classified | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total consumer loans | $873 |  | $815 |  | $653 |  | $403 |  | $291 |  | $1,766 |  | $4,801 |
Other loans |  |  |  |  |  |  |
Pass | $2,028 |  | $1,645 |  | $430 |  | $95 |  | $— |  | $208 |  | $4,406 |
Classified | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total other loans | $2,028 |  | $1,645 |  | $430 |  | $95 |  | $— |  | $208 |  | $4,406 |
Total loans |  |  |  |  |  |  |
Pass | $487,700 |  | $261,687 |  | $153,684 |  | $95,818 |  | $63,119 |  | $296,998 |  | $1,359,006 |
Classified | 19,270 |  | 3,190 |  | 4,036 |  | 4,459 |  | 10,912 |  | 13,013 |  | 54,880 |
Total loans | $506,970 |  | $264,877 |  | $157,720 |  | $100,277 |  | $74,031 |  | $310,011 |  | $1,413,886 |
Total pass loans | $487,700 |  | $261,687 |  | $153,684 |  | $95,818 |  | $63,119 |  | $296,998 |  | $1,359,006 |
Government guarantees | (145,713) |  | (12,725) |  | (14,429) |  | (3,299) |  | (306) |  | (6,562) |  | (183,034) |
Total pass loans, net of government guarantees | $341,987 |  | $248,962 |  | $139,255 |  | $92,519 |  | $62,813 |  | $290,436 |  | $1,175,972 |
Total classified loans | $19,270 |  | $3,190 |  | $4,036 |  | $4,459 |  | $10,912 |  | $13,013 |  | $54,880 |
Government guarantees | (7,201) |  | (1,259) |  | — |  | — |  | — |  | (10,571) |  | (19,031) |
Total classified loans, net government guarantees | $12,069 |  | $1,931 |  | $4,036 |  | $4,459 |  | $10,912 |  | $2,442 |  | $35,849 |
Past Due Loans: The following tables present an aging of contractually past due loans as of the periods presented:
(In Thousands) | 30-59 Days Past Due |  | 60-89 Days Past Due |  | Greater Than 90 Days Past Due |  | Total Past Due |  | Current |  | Total |  | Greater Than 90 Days Past Due Still Accruing
June 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial & industrial loans | $246 |  |  | $132 |  |  | $387 |  |  | $765 |  |  | $394,076 |  |  | $394,841 |  |  | $— |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied properties | 737 |  |  |  |  | 1,076 |  |  | 1,813 |  |  | 311,361 |  |  | 313,174 |  |  | — |
Non-owner occupied and multifamily properties | — |  |  | — |  |  | — |  |  | — |  |  | 446,592 |  |  | 446,592 |  |  | — |
Residential real estate: |  |  |  |  |  |  |  |  |  |  |  |  |
1-4 family residential properties secured by first liens | 65 |  |  | — |  |  | 147 |  |  | 212 |  |  | 37,086 |  |  | 37,298 |  |  | — |
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens | — |  |  | — |  |  | 133 |  |  | 133 |  |  | 21,820 |  |  | 21,953 |  |  | — |
1-4 family residential construction loans | — |  |  | — |  |  | 109 |  |  | 109 |  |  | 43,806 |  |  | 43,915 |  |  | — |
Other construction, land development and raw land loans | — |  |  | — |  |  | 1,546 |  |  | 1,546 |  |  | 85,617 |  |  | 87,163 |  |  | — |
Obligations of states and political subdivisions in the US | — |  |  | — |  |  | — |  |  | — |  |  | 24,005 |  |  | 24,005 |  |  | — |
Agricultural production, including commercial fishing | — |  |  | — |  |  | — |  |  | — |  |  | 29,482 |  |  | 29,482 |  |  | — |
Consumer loans | — |  |  | — |  |  | — |  |  | — |  |  | 4,092 |  |  | 4,092 |  |  | — |
Other loans | — |  |  | — |  |  | — |  |  | — |  |  | 3,194 |  |  | 3,194 |  |  | — |
Total | $1,048 |  |  | $132 |  |  | $3,398 |  |  | $4,578 |  |  | $1,401,131 |  |  | $1,405,709 |  |  | $— |
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial & industrial loans | $206 |  |  | $51 |  |  | $469 |  |  | $726 |  |  | $447,612 |  |  | $448,338 |  |  | $— |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied properties | 12 |  |  | — |  |  | 1,176 |  |  | 1,188 |  |  | 299,012 |  |  | 300,200 |  |  | — |
Non-owner occupied and multifamily properties | — |  |  | — |  |  | — |  |  | — |  |  | 435,311 |  |  | 435,311 |  |  | — |
Residential real estate: |  |  |  |  |  |  |  |  |  |  |  |  |
1-4 family residential properties secured by first liens | — |  |  | — |  |  | 90 |  |  | 90 |  |  | 32,452 |  |  | 32,542 |  |  | — |
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens | — |  |  | — |  |  | 139 |  |  | 139 |  |  | 19,471 |  |  | 19,610 |  |  | — |
1-4 family residential construction loans | — |  |  | — |  |  | 109 |  |  | 109 |  |  | 36,113 |  |  | 36,222 |  |  | — |
Other construction, land development and raw land loans | — |  |  | — |  |  | 1,636 |  |  | 1,636 |  |  | 86,458 |  |  | 88,094 |  |  | — |
Obligations of states and political subdivisions in the US | — |  |  | — |  |  | — |  |  | — |  |  | 16,403 |  |  | 16,403 |  |  | — |
Agricultural production, including commercial fishing | — |  |  | — |  |  | — |  |  | — |  |  | 27,959 |  |  | 27,959 |  |  | — |
Consumer loans | — |  |  | — |  |  | — |  |  | — |  |  | 4,801 |  |  | 4,801 |  |  | — |
Other loans | — |  |  | — |  |  | — |  |  | — |  |  | 4,406 |  |  | 4,406 |  |  | — |
Total | $218 |  |  | $51 |  |  | $3,619 |  |  | $3,888 |  |  | $1,409,998 |  |  | $1,413,886 |  |  | $— |
Nonaccrual loans: Nonaccrual loans net of government guarantees totaled $7.3 million and $10.7 million at June 30, 2022 and December 31, 2021, respectively. The following table presents loans on nonaccrual status and loans on nonaccrual status for which there was no related ACL. All loans with no ACL are individually evaluated for credit losses in the Company's Current Expected Credit Losses methodology.
| June 30, 2022 | December 31, 2021
(In Thousands) | Nonaccrual | Nonaccrual With No ACL | Nonaccrual | Nonaccrual With No ACL
Commercial & industrial loans | $3,496 |  | $3,496 |  | $4,350 |  | $4,298 |
Commercial real estate: |  |  |  |
Owner occupied properties | 2,352 |  | 2,348 |  | 3,506 |  | 3,506 |
Residential real estate: |  |  |  |
1-4 family residential properties secured by first liens | 219 |  | 219 |  | 1,778 |  | 1,778 |
1-4 family residential properties secured by junior liens and revolving secured by 1-4 family first liens | 280 |  | 207 |  | 271 |  | 215 |
1-4 family residential construction loans | 109 |  | 109 |  | 109 |  | 109 |
Other construction, land development and raw land loans | 1,545 |  | 1,545 |  | 1,636 |  | 1,636 |
Consumer loans | — |  | — |  | — |  | — |
Total nonaccrual loans | 8,001 |  | 7,924 |  | 11,650 |  | 11,542 |
Government guarantees on nonaccrual loans | (683) |  | (683) |  | (978) |  | (978) |
Net nonaccrual loans | $7,318 |  | $7,241 |  | $10,672 |  | $10,564 |
There was no interest on nonaccrual loans reversed through interest income during three-month period ending June 30, 2022 and $2,000 in interest on nonaccrual loans reversed through interest income during the six-month period ending June 30, 2022. There was no interest on nonaccrual loans reversed through interest income during the three and six-month periods ending June 30, 2021. There was no interest earned on nonaccrual loans with a principal balance during the three and six-month periods ending June 30, 2022 and June 30, 2021, respectively. However, the Company recognized interest income of $873,000 and $232,000 in the three-month periods ending June 30, 2022 and 2021, respectively, and $930,000 and $366,000 in the six-month periods ending June 30, 2022 and 2021, respectively, related to interest collected on nonaccrual loans whose principal had been paid down to zero. Troubled Debt Restructurings: Loans classified as TDRs totaled $8.9 million and $10.6 million at June 30, 2022 and December 31, 2021, respectively. A TDR is a loan to a borrower that is experiencing financial difficulty that has been modified from its original terms and conditions in such a way that the Company is granting the borrower a concession that it would not grant otherwise. The provisions of the Coronavirus Aid, Relief, and Economic Security ("CARES") Act included an election to not apply the guidance on accounting for TDRs to loan modifications, such as extensions or deferrals, related to COVID-19 made between March 1, 2020 and December 31, 2021. The relief can only be applied to modifications for borrowers that were not more than 30 days past due as of December 31, 2019. The Company elected to adopt these provisions of the CARES Act. The Company has made the following types of loan modifications related to COVID-19, which are not classified as TDRs with principal balance outstanding of:
Loan Modifications due to COVID-19 as of June 30, 2022
(Dollars in thousands) | Interest Only | Full Payment Deferral | Total
Portfolio loans | $23,573 |  | $— |  | $23,573 |
Number of modifications | 5 |  | — |  | 5 |
Loan Modifications due to COVID-19 as of December 31, 2021
(Dollars in thousands) | Interest Only | Full Payment Deferral | Total
Portfolio loans | $49,219 |  | $— |  | $49,219 |
Number of modifications | 16 |  | — |  | 16 |
The Company has granted a variety of concessions to borrowers in the form of loan modifications. The modifications granted can generally be described in the following categories: Rate Modification: A modification in which the interest rate is changed. Term Modification: A modification in which the maturity date, timing of payments, or frequency of payments is changed. Payment Modification: A modification in which the dollar amount of the payment is changed, or in which a loan is converted to interest only payments for a period of time is included in this category. Combination Modification: Any other type of modification, including the use of multiple categories above. AQR pass graded loans included above in the impaired loan data are loans classified as TDRs. By definition, TDRs are considered impaired loans. All of the Company's TDRs are included in impaired loans. There were no newly restructured loans that occurred during the six months ended June 30, 2022. As discussed above, the CARES Act provided banks an option to elect to not account for certain loan modifications related to COVID-19 between March 1, 2020 and December 31, 2021 as TDRs as long as the borrowers were not more than 30 days past due as of December 31, 2019. The disclosed loan restructurings were not related to COVID-19 modifications.
| Accrual Status |  | Nonaccrual Status |  | Total Modifications
(In Thousands) |  |
Existing Troubled Debt Restructurings | $3,008 |  |  | $5,844 |  |  | $8,852 |
Total | $3,008 |  |  | $5,844 |  |  | $8,852 |
The following table presents newly restructured loans that occurred during the six months ended June 30, 2021, by concession (terms modified):
|  |  | June 30, 2021
| Number of Contracts |  | Rate Modification |  | Term Modification |  | Payment Modification |  | Combination Modification |  | Total Modifications
(In Thousands) |  |  |  |  |
Pre-Modification Outstanding Recorded Investment: |  |  |  |  |  |  |  |  |  |  |
Commercial - AQR substandard | 1 |  | $— |  |  | $254 |  |  | $— |  |  | $— |  |  | $254 |
Total | 1 |  | $— |  |  | $254 |  |  | $— |  |  | $— |  |  | $254 |
Post-Modification Outstanding Recorded Investment: |  |  |  |  |  |  |  |  |  |  |
Commercial - AQR substandard | 1 |  | $— |  |  | $251 |  |  | $— |  |  | $— |  |  | $251 |
Total | 1 |  | $— |  |  | $251 |  |  | $— |  |  | $— |  |  | $251 |
The Company had no commitments to extend additional credit to borrowers whose terms have been modified in TDRs. There were no in charge-offs in the six months ended June 30, 2022 on loans that were newly classified as TDRs during the same period. There were no loans that defaulted during the six months ended June 30, 2022 and 2021, respectively, that were restructured in the previous twelve months.

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