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Note 5 - Loans and Allowance for Loan Losses | 9 Months Ended
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Sep. 30, 2020
Notes to Financial Statements |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE 5 - LOANS AND ALLOWANCE FOR LOAN LOSSES The Company's loan portfolio consists primarily of loans to borrowers within the Southern California metropolitan area, the New York City metropolitan area, the Chicago, Illinois metropolitan area and Las Vegas, Nevada. Although the Company seeks to avoid concentrations of loans to a single industry or based upon a single class of collateral, real estate and real estate associated businesses are among the principal industries in the Company's market area and, as a result, the Company's loan and collateral portfolios are, to some degree, concentrated in those industries. The following tables present the balance and activity related to the allowance for loan losses for held for investment loans by type for the periods presented.
|  | Three Months Ended September 30, |
|  | 2020 |  |  | 2019 |
(dollars in thousands) |  | Real Estate |  |  | Commercial |  |  | Other |  |  | Unallocated |  |  | Total |  |  | Real Estate |  |  | Commercial |  |  | Other |  |  | Unallocated |  |  | Total |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 18,985 |  |  | $ | 3,813 |  |  | $ | 22 |  |  | $ | — |  |  | $ | 22,820 |  |  | $ | 14,582 |  |  | $ | 3,976 |  |  | $ | 3 |  |  | $ | — |  |  | $ | 18,561 |
Additions (reductions) to the allowance charged to expense |  |  | 2,858 |  |  |  | 990 |  |  |  | 13 |  |  |  | — |  |  |  | 3,861 |  |  |  | 558 |  |  |  | 25 |  |  |  | 3 |  |  |  | 238 |  |  |  | 824 |
Charge-offs on loans |  |  | — |  |  |  | (48 | ) |  |  | — |  |  |  | — |  |  |  | (48 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Recoveries on loans |  |  | — |  |  |  | 1 |  |  |  | — |  |  |  | — |  |  |  | 1 |  |  |  | — |  |  |  | 1 |  |  |  | — |  |  |  | — |  |  |  | 1 |
Ending balance |  | $ | 21,843 |  |  | $ | 4,756 |  |  | $ | 35 |  |  | $ | — |  |  | $ | 26,634 |  |  | $ | 15,140 |  |  | $ | 4,002 |  |  | $ | 6 |  |  | $ | 238 |  |  | $ | 19,386 |
|  | Nine Months Ended September 30, |
|  | 2020 |  |  | 2019 |
(dollars in thousands) |  | Real Estate |  |  | Commercial |  |  | Other |  |  | Unallocated |  |  | Total |  |  | Real Estate |  |  | Commercial |  |  | Other |  |  | Unallocated |  |  | Total |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning of year |  | $ | 15,118 |  |  | $ | 3,588 |  |  | $ | 9 |  |  | $ | 101 |  |  | $ | 18,816 |  |  | $ | 13,437 |  |  | $ | 4,140 |  |  | $ | — |  |  | $ | — |  |  | $ | 17,577 |
Additions (reductions) to the allowance charged to expense |  |  | 6,725 |  |  |  | 2,165 |  |  |  | 26 |  |  |  | (101 | ) |  |  | 8,815 |  |  |  | 1,703 |  |  |  | (216 | ) |  |  | 6 |  |  |  | 238 |  |  |  | 1,731 |
Charge-offs on loans |  |  | — |  |  |  | (998 | ) |  |  | — |  |  |  | — |  |  |  | (998 | ) |  |  | — |  |  |  | 110 |  |  |  | — |  |  |  | — |  |  |  | 110 |
Recoveries on loans |  |  | — |  |  |  | 1 |  |  |  | — |  |  |  | — |  |  |  | 1 |  |  |  | — |  |  |  | (32 | ) |  |  | — |  |  |  | — |  |  |  | (32 | )
Ending balance |  | $ | 21,843 |  |  | $ | 4,756 |  |  | $ | 35 |  |  | $ | — |  |  | $ | 26,634 |  |  | $ | 15,140 |  |  | $ | 4,002 |  |  | $ | 6 |  |  | $ | 238 |  |  | $ | 19,386 |
|  | For the year end December 31, 2019 |
(dollars in thousands) |  | Real Estate |  |  | Commercial |  |  | Other |  |  | Unallocated |  |  | Total |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning of year |  | $ | 13,437 |  |  | $ | 4,140 |  |  | $ | — |  |  | $ | — |  |  | $ | 17,577 |
Additions (reductions) to the allowance charged to expense |  |  | 1,847 |  |  |  | 433 |  |  |  | 9 |  |  |  | 101 |  |  |  | 2,390 |
Charge-offs on loans |  |  | (166 | ) |  |  | (1,093 | ) |  |  | — |  |  |  | — |  |  |  | (1,259 | )
Recoveries on loans |  |  | — |  |  |  | 108 |  |  |  | — |  |  |  | — |  |  |  | 108 |
Ending balance |  | $ | 15,118 |  |  | $ | 3,588 |  |  | $ | 9 |  |  | $ | 101 |  |  | $ | 18,816 |
The following table presents the recorded investment in loans and impairment method as of September 30, 2020, September 30, 2019, and December 31, 2019, by portfolio segment:
(dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
September 30, 2020 |  | Real Estate |  |  | Commercial |  |  | Other |  |  | Unallocated |  |  | Total |
Reserves: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Specific |  | $ | — |  |  | $ | 436 |  |  | $ | — |  |  | $ | — |  |  | $ | 436 |
General |  |  | 21,843 |  |  |  | 4,320 |  |  |  | 35 |  |  |  | — |  |  |  | 26,198 |
Total allowance for loan losses |  | $ | 21,843 |  |  | $ | 4,756 |  |  | $ | 35 |  |  | $ | — |  |  | $ | 26,634 |
Loans evaluated for impairment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually |  | $ | 6,119 |  |  | $ | 11,842 |  |  | $ | 15 |  |  | $ | — |  |  | $ | 17,976 |
Collectively |  |  | 2,316,619 |  |  |  | 417,242 |  |  |  | 3,316 |  |  |  | — |  |  |  | 2,737,177 |
Total loans, net of deferred loan fees and unaccreted discount on acquired loans |  | $ | 2,322,738 |  |  | $ | 429,084 |  |  | $ | 3,331 |  |  | $ | — |  |  | $ | 2,755,153 |
September 30, 2019 |  | Real Estate |  |  | Commercial |  |  | Other |  |  | Unallocated |  |  | Total |
Reserves: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Specific |  | $ | 127 |  |  | $ | 303 |  |  | $ | — |  |  | $ | — |  |  | $ | 430 |
General |  |  | 15,013 |  |  |  | 3,699 |  |  |  | 6 |  |  |  | 238 |  |  |  | 18,956 |
Total allowance for loan losses |  | $ | 15,140 |  |  | $ | 4,002 |  |  | $ | 6 |  |  |  | 238 |  |  |  | 19,386 |
Loans evaluated for impairment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually |  | $ | 4,537 |  |  | $ | 5,091 |  |  | $ | — |  |  | $ | — |  |  | $ | 9,628 |
Collectively |  |  | 1,773,616 |  |  |  | 342,365 |  |  |  | 536 |  |  |  | — |  |  |  | 2,116,517 |
Total loans, net of deferred loan fees and unaccreted discount on acquired loans |  | $ | 1,778,153 |  |  | $ | 347,456 |  |  | $ | 536 |  |  | $ | — |  |  | $ | 2,126,145 |
December 31, 2019 |  | Real Estate |  |  | Commercial |  |  | Other |  |  | Unallocated |  |  | Total |
Reserves: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Specific |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
General |  |  | 15,118 |  |  |  | 3,588 |  |  |  | 9 |  |  |  | 101 |  |  |  | 18,816 |
Total allowance for loan losses |  | $ | 15,118 |  |  | $ | 3,588 |  |  | $ | 9 |  |  | $ | 101 |  |  | $ | 18,816 |
Loans evaluated for impairment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually |  | $ | 3,795 |  |  | $ | 9,423 |  |  | $ | — |  |  | $ | — |  |  | $ | 13,218 |
Collectively |  |  | 1,842,747 |  |  |  | 340,148 |  |  |  | 821 |  |  |  | — |  |  |  | 2,183,716 |
Total loans, net of deferred loan fees and unaccreted discount on acquired loans |  | $ | 1,846,542 |  |  | $ | 349,571 |  |  | $ | 821 |  |  | $ | — |  |  | $ | 2,196,934 |
The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, collateral adequacy, credit documentation, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis typically includes larger, non-homogeneous loans such as commercial real estate and commercial and industrial loans. This analysis is performed on an ongoing basis as new information is obtained. The Company uses the following definitions for risk ratings: Pass - Loans classified as pass include loans not meeting the risk ratings defined below. Special Mention - Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution's credit position at some future date. Substandard - Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Impaired - A loan is considered impaired, when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Additionally, all loans classified as troubled debt restructurings are considered impaired. The risk category of loans by class of loans was as follows at September 30, 2020 and December 31, 2019:
(dollars in thousands) |  |  |  |  |  | Special |  |  |  |  |  |  |  |  |  |  |  |  |
September 30, 2020 |  | Pass |  |  | Mention |  |  | Substandard |  |  | Impaired |  |  | Total (1) |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction and land development |  | $ | 182,808 |  |  | $ | — |  |  | $ | — |  |  | $ | 761 |  |  | $ | 183,569 |
Commercial real estate |  |  | 913,868 |  |  |  | 5,980 |  |  |  | 52,728 |  |  |  | 2,611 |  |  |  | 975,187 |
Single-family residential mortgages |  |  | 1,158,935 |  |  |  | 2,083 |  |  |  | 217 |  |  |  | 2,747 |  |  |  | 1,163,982 |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other |  |  | 308,412 |  |  |  | — |  |  |  | 7,354 |  |  |  | 2,125 |  |  |  | 317,891 |
SBA |  |  | 97,010 |  |  |  | 187 |  |  |  | 4,279 |  |  |  | 9,717 |  |  |  | 111,193 |
Other: |  |  | 3,316 |  |  |  | — |  |  |  | — |  |  |  | 15 |  |  |  | 3,331 |
Total loans |  | $ | 2,664,349 |  |  | $ | 8,250 |  |  | $ | 64,578 |  |  | $ | 17,976 |  |  | $ | 2,755,153 |
(dollars in thousands) |  |  |  |  |  | Special |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2019 |  | Pass |  |  | Mention |  |  | Substandard |  |  | Impaired |  |  | Total(1) |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction and land development |  | $ | 95,756 |  |  | $ | — |  |  | $ | — |  |  | $ | 264 |  |  | $ | 96,020 |
Commercial real estate |  |  | 767,603 |  |  |  | 5,353 |  |  |  | 18,115 |  |  |  | 2,197 |  |  |  | 793,268 |
Single-family residential mortgages |  |  | 955,327 |  |  |  | — |  |  |  | 593 |  |  |  | 1,334 |  |  |  | 957,254 |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other |  |  | 265,178 |  |  |  | 4,078 |  |  |  | 5,330 |  |  |  | — |  |  |  | 274,586 |
SBA |  |  | 61,496 |  |  |  | 189 |  |  |  | 3,877 |  |  |  | 9,423 |  |  |  | 74,985 |
Other: |  |  | 821 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 821 |
Total loans |  | $ | 2,146,181 |  |  | $ | 9,620 |  |  | $ | 27,915 |  |  | $ | 13,218 |  |  | $ | 2,196,934 |
| (1) | Loans, net of deferred fees
The following table presents the aging of the recorded investment in past-due loans at September 30, 2020 and December 31, 2019 by class of loans:
(dollars in thousands) |  | 30-59 |  |  | 60-89 |  |  | 90 Days |  |  | Total |  |  | Loans Not |  |  | Total |  |  | Non-Accrual |
September 30, 2020 |  | Days |  |  | Days |  |  | Or More |  |  | Past Due |  |  | Past Due |  |  | Loans |  |  | Loans (1) |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction and land development |  | $ | — |  |  | $ | 400 |  |  | $ | 361 |  |  | $ | 761 |  |  | $ | 182,808 |  |  | $ | 183,569 |  |  | $ | 761 |
Commercial real estate |  |  | 7,578 |  |  |  | 11,791 |  |  |  | 1,168 |  |  |  | 20,537 |  |  |  | 954,650 |  |  |  | 975,187 |  |  |  | 1,168 |
Single-family residential mortgages |  |  | 2,408 |  |  |  | 791 |  |  |  | 799 |  |  |  | 3,998 |  |  |  | 1,159,984 |  |  |  | 1,163,982 |  |  |  | 2,747 |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other |  |  | — |  |  |  | — |  |  |  | 882 |  |  |  | 882 |  |  |  | 317,009 |  |  |  | 317,891 |  |  |  | 1,622 |
SBA |  |  | — |  |  |  | 37 |  |  |  | 9,680 |  |  |  | 9,717 |  |  |  | 101,476 |  |  |  | 111,193 |  |  |  | 9,680 |
Other: |  |  | 12 |  |  |  | — |  |  |  | 15 |  |  |  | 27 |  |  |  | 3,304 |  |  |  | 3,331 |  |  |  | 15 |
|  | $ | 9,998 |  |  | $ | 13,019 |  |  | $ | 12,905 |  |  | $ | 35,922 |  |  | $ | 2,719,231 |  |  | $ | 2,755,153 |  |  | $ | 15,993 |
|  | 30-59 |  |  | 60-89 |  |  | 90 Days |  |  | Total |  |  | Loans Not |  |  | Total |  |  | Non-Accrual |
December 31, 2019 |  | Days |  |  | Days |  |  | Or More |  |  | Past Due |  |  | Past Due |  |  | Loans |  |  | Loans (1) |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction and land development |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 96,020 |  |  | $ | 96,020 |  |  | $ | — |
Commercial real estate |  |  | — |  |  |  | — |  |  |  | 725 |  |  |  | 725 |  |  |  | 792,543 |  |  |  | 793,268 |  |  |  | 725 |
Single-family residential mortgages |  |  | 1,454 |  |  |  | 1,560 |  |  |  | 450 |  |  |  | 3,464 |  |  |  | 953,790 |  |  |  | 957,254 |  |  |  | 1,334 |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 274,586 |  |  |  | 274,586 |  |  |  | — |
SBA |  |  | 2,263 |  |  |  | — |  |  |  | 9,378 |  |  |  | 11,641 |  |  |  | 63,344 |  |  |  | 74,985 |  |  |  | 9,378 |
Other: |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 821 |  |  |  | 821 |  |  |  | — |
|  | $ | 3,717 |  |  | $ | 1,560 |  |  | $ | 10,553 |  |  | $ | 15,830 |  |  | $ | 2,181,104 |  |  | $ | 2,196,934 |  |  | $ | 11,437 |
| (1) | Included in total loans.
The Company has no loans that are 90 days or more past due and still accruing at September 30, 2020 and December 31, 2019. Information relating to individually impaired loans presented by class of loans was as follows at September 30, 2020 and December 31, 2019:
(dollars in thousands) |  | Principal |  |  | Recorded |  |  | Related |
September 30, 2020 |  | Balance |  |  | Investment |  |  | Allowance |
With no related allowance recorded |  |  |  |  |  |  |  |  |  |  |  |
Construction and land development |  | $ | 761 |  |  | $ | 761 |  |  | $ | — |
Commercial and industrial |  |  | 1,764 |  |  |  | 1,713 |  |  |  |  |
Commercial real estate |  |  | 2,611 |  |  |  | 2,611 |  |  |  | — |
Residential mortgage loans |  |  | 2,846 |  |  |  | 2,747 |  |  |  | — |
Commercial – SBA |  |  | 9,695 |  |  |  | 9,680 |  |  |  | — |
Other |  |  | 15 |  |  |  | 15 |  |  |  | — |
With related allowance recorded |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  | 430 |  |  |  | 412 |  |  |  | 430 |
Commercial - SBA |  |  | 37 |  |  |  | 37 |  |  |  | 6 |
Total |  | $ | 18,159 |  |  | $ | 17,976 |  |  | $ | 436 |
(dollars in thousands) |  | Principal |  |  | Recorded |  |  | Related |
December 31, 2019 |  | Balance |  |  | Investment |  |  | Allowance |
With no related allowance recorded |  |  |  |  |  |  |  |  |  |  |  |
Construction and land development |  | $ | 264 |  |  | $ | 264 |  |  | $ | — |
Commercial real estate |  |  | 2,198 |  |  |  | 2,197 |  |  |  | — |
Residential mortgage loans |  |  | 1,349 |  |  |  | 1,334 |  |  |  | — |
Commercial – SBA |  |  | 9,423 |  |  |  | 9,423 |  |  |  | — |
With related allowance recorded |  |  |  |  |  |  |  |  |  |  |  |
Commercial – SBA |  |  | — |  |  |  | — |  |  |  | — |
Total |  | $ | 13,234 |  |  | $ | 13,218 |  |  | $ | — |
The following table presents information on impaired loans and leases, disaggregated by loan segment, for the periods indicated:
|  | Three Months Ended |  |  | Nine Months Ended |
|  | September 30, 2020 |  |  | September 30, 2019 |  |  | September 30, 2020 |  |  | September 30, 2019 |
|  | Average |  |  | Interest |  |  | Average |  |  | Interest |  |  | Average |  |  | Interest |  |  | Average |  |  | Interest |
(dollars in thousands) |  | Balance |  |  | Income |  |  | Balance |  |  | Income |  |  | Balance |  |  | Income |  |  | Balance |  |  | Income |
With no related allowance recorded |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction and land development |  | $ | 762 |  |  | $ | — |  |  | $ | 269 |  |  | $ | 18 |  |  | $ | 765 |  |  | $ | — |  |  | $ | 271 |  |  | $ | 24 |
Commercial and industrial |  |  | 1,782 |  |  |  | 7 |  |  |  | — |  |  |  | — |  |  |  | 1,819 |  |  |  | 24 |  |  |  | — |  |  |  | — |
Commercial real estate |  |  | 2,679 |  |  |  | 25 |  |  |  | 2,552 |  |  |  | 152 |  |  |  | 2,689 |  |  |  | 77 |  |  |  | 2,560 |  |  |  | 169 |
Residential mortgage loans |  |  | 2,916 |  |  |  | — |  |  |  | 906 |  |  |  | 3 |  |  |  | 2,755 |  |  |  | — |  |  |  | 907 |  |  |  | 25 |
Commercial – SBA |  |  | 10,017 |  |  |  | — |  |  |  | 3,005 |  |  |  | 3 |  |  |  | 12,682 |  |  |  | — |  |  |  | 3,007 |  |  |  | 4 |
Other |  |  | 15 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 15 |  |  |  | — |  |  |  | — |  |  |  |  |
With related allowance recorded |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  | 433 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 482 |  |  |  | — |  |  |  | — |  |  |  | — |
Commercial real estate |  |  | — |  |  |  | — |  |  |  | 894 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 895 |  |  |  | — |
Commercial – SBA |  |  | 39 |  |  |  | 1 |  |  |  | 2,128 |  |  |  | — |  |  |  | 41 |  |  |  | 2 |  |  |  | 2,131 |  |  |  | — |
|  | $ | 18,643 |  |  | $ | 33 |  |  | $ | 9,754 |  |  | $ | 176 |  |  | $ | 21,248 |  |  | $ | 103 |  |  | $ | 9,771 |  |  | $ | 222 |
No interest income on non-accrual loans was recognized on a cash basis for the three and nine months ended September 30, 2020 and 2019 and for the year ended December 31, 2019. The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), signed into law on March 27, 2020, permits financial institutions to suspend requirements under GAAP for loan modifications to borrowers affected by COVID-19 that would otherwise be characterized as troubled debt restructurings ("TDRs") and suspend any determination related thereto if (i) the loan modification is made between March 1, 2020 and the earlier of December 31, 2020 or 60 days after the end of the coronavirus emergency declaration and (ii) the applicable loan was not more than 30 days past due as of December 31, 2019. In addition, federal bank regulatory authorities have issued guidance to encourage financial institutions to make loan modifications for borrowers affected by COVID-19 and have assured financial institutions that they will neither receive supervisory criticism for such prudent loan modifications, nor be required by examiners to automatically categorize COVID-19-related loan modifications as TDRs. The Company is applying this guidance to qualifying loan modifications. The Company identified six loans as TDRs at September 30, 2020 and four loans at December 31, 2019, respectively, with aggregate balances of $3.1 million and $1.8 million, respectively. Non-accrual TDRs were $1.1 million at September 30, 2020, and zero at December 31, 2019. There were no specific reserves allocated to the loans as of September 30, 2020 and December 31, 2019. There are no commitments to lend additional amounts at September 30, 2020 and December 31, 2019 to customers with outstanding loans that are classified as TDRs. There were two non-accrual loans that were modified as TDRs during the past twelve months that had payment defaults during the periods. The following table presents loans by class modified as TDRs that occurred during the nine months ended September 30, 2020. There was one loan modified as a TDR during the three months ended September 30, 2020 and three loans modified as TDRs during the nine months ended September 30, 2020. There were no loans and one new TDRs during the three and nine months ended September 30, 2019, respectively. The modification of the terms generally included loans where a moratorium on loan payments was granted. Such moratoriums ranged from six months to nine months on the loans restructured in 2020 and 2019.
|  |  |  |  |  | Pre- |  |  | Post- |
|  |  |  |  |  | Modification |  |  | Modification |
(dollars in thousands) |  | Number of |  |  | Recorded |  |  | Recorded |
September 30, 2020 |  | Loans |  |  | Investment |  |  | Investment |
Commercial and industrial |  |  | 3 |  |  |  | 1,719 |  |  |  | 1,719 |
Total |  |  | 3 |  |  | $ | 1,719 |  |  | $ | 1,719 |

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- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2196772 + Details
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