
(in thousands)	September 30, 2021		December 31, 2020
Commercial loans
Commercial and industrial	$	107,142	$	75,387
Owner-occupied commercial real estate	84,819		89,785
Investor commercial real estate	28,505		13,902
Construction	115,414		110,385
Single tenant lease financing	921,998		950,172
Public finance	601,738		622,257
Healthcare finance	417,388		528,154
Small business lending	102,889		125,589
Franchise finance	25,598		—
Total commercial loans	2,405,491		2,515,631
Consumer loans
Residential mortgage	188,750		186,787
Home equity	17,960		19,857
Other consumer	268,396		275,692
Total consumer loans	475,106		482,336
Total commercial and consumer loans	2,880,597		2,997,967
Net deferred loan origination fees/costs and premiums/discounts on purchased loans and other(1)	55,551		61,264
Total loans	2,936,148		3,059,231
Allowance for loan losses	(28,000)		(29,484)
Net loans	$	2,908,148	$	3,029,747

Commercial and Industrial: Commercial and industrial loans’ sources of repayment are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected, and the collateral securing these loans may fluctuate in value. Loans are made for working capital, equipment purchases, or other purposes. Most commercial and industrial loans are secured by the assets being financed and may incorporate a personal guarantee. This portfolio segment is generally concentrated in the Midwest and Southwest regions of the United States.

Owner-Occupied Commercial Real Estate: The primary source of repayment is the cash flow from the ongoing operations and activities conducted by the borrower, or an affiliate of the borrower, who owns the property. This portfolio segment is generally concentrated in the Midwest and Southwest regions of the United States and its loans are often secured by manufacturing and service facilities, as well as office buildings.

Investor Commercial Real Estate: These loans are underwritten primarily based on the cash flow expected to be generated from the property and are secondarily supported by the value of the real estate. These loans typically incorporate a personal guarantee from the primary sponsor or sponsors. This portfolio segment generally involves larger loan amounts with repayment primarily dependent on the successful leasing and operation of the property securing the loan or the business conducted on the property securing the loan. Investor commercial real estate loans may be more adversely affected by changing economic conditions in the real estate markets, industry dynamics or the overall health of the local economy where the property is located. The properties securing the Company’s investor commercial real estate portfolio tend to be diverse in terms of property type and are generally located in the Midwest region of the United States. Management monitors and evaluates commercial real estate loans based on property financial performance, collateral value, guarantor strength, economic and industry conditions together with other risk grade criteria. As a general rule, the Company avoids financing special use projects or properties outside of its designated market areas unless other underwriting factors are present to mitigate these additional risks.

Construction: Construction loans are secured by land and related improvements and are made to assist in the construction of new structures, which may include commercial (retail, industrial, office, and multi-family) properties or single family residential properties offered for sale by the builder. These loans generally finance a variety of project costs, including land, site preparation, architectural services, construction, closing and soft costs and interim financing needs. The cash flows of builders, while initially predictable, may fluctuate with market conditions, and the value of the collateral securing these loans may be subject to fluctuations based on general economic changes. This portfolio segment is generally concentrated in the Midwest region of the United States.

Single Tenant Lease Financing: These loans are made on a nationwide basis to property owners of real estate subject to long-term lease arrangements with single tenant operators. The real estate is typically operated by regionally, nationally or globally branded businesses. The loans are underwritten based on the financial strength of the borrower, characteristics of the real estate, cash flows generated from the lease arrangements and the financial strength of the tenant. Similar to the other loan portfolio segments, management monitors and evaluates these loans based on borrower and tenant financial performance, collateral value, industry trends and other risk grade criteria.

Public Finance: These loans are made on a nationwide basis to governmental and not-for-profit entities to provide both tax-exempt and taxable loans for a variety of purposes including: short-term cash-flow needs; debt refinancing; economic development; quality of life projects; infrastructure improvements; and equipment financing. The primary sources of repayment for public finance loans include pledged revenue sources including but not limited to: general obligations; property taxes; income taxes; tax increment revenue; utility revenue; gaming revenues; sales tax; and pledged general revenue. Certain loans may also include an additional collateral pledge of mortgaged property or a security interest in financed equipment.

Healthcare Finance: These loans are made on a nationwide basis to healthcare providers, primarily dentists, for practice acquisition refinancing that occasionally includes owner-occupied commercial real estate and equipment purchases. The sources of repayment are primarily based on the identified cash flows from operations of the borrower and related entities if the real estate is held in a separate entity and secondarily on the underlying collateral provided by the borrower.

Small Business Lending: These loans are made on a nationwide basis to small businesses and generally carry a partial guaranty from the U.S. Small Business Administration ("SBA") under its 7(a) loan program. We generally sell the government guaranteed portion of SBA loans into the secondary market while retaining the non-guaranteed portion of the loan and the servicing rights. Loans in the small business lending portfolio have sources of repayment that are primarily based on the identified cash flows of the borrower and secondarily on any underlying collateral provided by the borrower. Loans may, but do not always, have a collateral shortfall. For SBA loans where the guaranteed portion is retained, the SBA guaranty provides a tertiary source of repayment to the Bank in event of borrower default. Cash flows of borrowers, however, may not be as expected and collateral securing these loans may fluctuate in value. Loans are made for a broad array of purposes including, but not limited to, providing operating cash flow, funding ownership changes, and facilitating equipment purchases. These loans also include loans originated by the Bank under the SBA’s Paycheck Protection Program, which are fully guaranteed by the SBA.

Franchise Finance: These loans are made on a nationwide basis through our partnership with ApplePie Capital, which through their deep relationships with franchise brands provides franchisees with asset-light financing options for new franchise units, recapitalization, expansion, equipment and working capital. The sources of repayment are either based on identified cash flows from existing operations of the borrower or pro forma cash flow for new franchise locations.

Residential Mortgage: With respect to residential loans that are secured by 1-to-4 family residences and are generally owner occupied, the Company typically establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Repayment of these loans is primarily dependent on the financial circumstances of the borrowers, which can be impacted by economic conditions, such as unemployment levels, in their market areas. Repayment can also be impacted by changes in residential property values. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers in geographically diverse locations throughout the country.

Home Equity: Home equity loans and lines of credit are typically secured by a subordinate interest in 1-to-4 family residences. The properties securing the home equity portfolio segment are generally geographically diverse as the Company offers these products on a nationwide basis. Repayment of these loans and lines of credit is primarily dependent on the financial circumstances of the borrowers and may be impacted by changes in unemployment levels and property values on residential properties, among other economic conditions in the market.

Other Consumer: These loans primarily consist of consumer loans and credit cards. Consumer loans may be secured by consumer assets such as horse trailers or recreational vehicles. Some consumer loans are unsecured, such as small installment loans, home improvement loans and certain lines of credit. Repayment of consumer loans is primarily dependent upon the personal income of the borrowers, which can be impacted by economic conditions, such as unemployment levels, in their market areas. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers in geographically diverse locations throughout the country.

Company policy is designed to maintain an adequate allowance for loan losses (“ALLL”). The portfolio is segmented by loan type, and the required ALLL for types of performing homogeneous loans which do not have a specific reserve is determined by applying a factor based on average historical losses, adjusted for current economic factors and portfolio trends. Management adds qualitative factors for observable trends, changes in internal practices, changes in delinquencies and impairments, and external factors. Observable factors include changes in the composition and size of portfolios, as well as loan terms or concentration levels. The Company evaluates the impact of internal changes such as management and staff experience levels or modification to loan underwriting processes. Delinquency trends are scrutinized for both volume and severity of past due, nonaccrual, or classified loans, as well as any changes in the value of underlying collateral. Finally, the Company considers the effect of other external factors such as national, regional, and local economic and business conditions, as well as competitive, legal, and regulatory requirements. Loans that are considered to be impaired are evaluated to determine the need for a specific allowance by applying at least one of three methodologies: present value of future cash flows; fair value of collateral less costs to sell; or the loan’s observable market price. All troubled debt restructurings (“TDR”) are considered impaired loans. Loans evaluated for impairment are removed from other pools to prevent double-counting. Accounting Standards Codification (“ASC”) Topic 310, Receivables, requires that impaired loans be measured based on the present value of expected future cash flows discounted at the loans’ effective interest rates or the fair value of the underlying collateral less costs to sell and allows existing methods for recognizing interest income.

A provision for estimated losses on loans is charged to income based upon management’s evaluation of the potential losses. Such an evaluation, which includes a review of all loans for which full repayment may not be reasonably assured, considers, among other matters, the estimated net realizable value of the underlying collateral, as applicable, economic conditions, loan loss experience, and other factors that are particularly susceptible to changes that could result in a material adjustment in the near term. While management attempts to use the best information available in making its evaluations, future allowance adjustments may be necessary if economic conditions change substantially from the assumptions used in making the evaluations.

The Company’s policy is to charge off a loan at any point in time when it no longer can be considered a bankable asset, meaning collectible within the parameters of policy. A secured loan is generally charged down to the estimated fair value of the collateral, less costs to sell, no later than when it is 120 days past due as to principal or interest. An unsecured loan generally is charged off no later than when it is 180 days past due as to principal or interest. A home improvement loan generally is charged off no later than when it is 90 days past due as to principal or interest.


(in thousands)	Three Months Ended September 30, 2021
Allowance for loan losses:	Balance, Beginning of Period		(Credit) Provision Charged to Expense		Losses Charged Off		Recoveries		Balance, End of Period
Commercial and industrial	$	1,902	$	122	$	—	$	2	$	2,026
Owner-occupied commercial real estate	1,021		(28)		—		—		993
Investor commercial real estate	329		(4)		—		—		325
Construction	1,357		(30)		—		—		1,327
Single tenant lease financing	11,205		(152)		—		—		11,053
Public finance	1,700		32		—		—		1,732
Healthcare finance	6,938		(584)		—		—		6,354
Small business lending	783		415		(10)		26		1,214
Franchise finance	—		310		—				310
Residential mortgage	594		19		—		3		616
Home equity	63		—		—		2		65
Other consumer	2,174		(129)		(110)		50		1,985
Total	$	28,066	$	(29)	$	(120)	$	83	$	28,000


	Nine Months Ended September 30, 2021
Allowance for loan losses:	Balance, Beginning of Period		Provision (Credit) Charged to Expense		Losses Charged Off		Recoveries		Balance, End of Period
Commercial and industrial	$	1,146	$	823	$	(28)	$	85	$	2,026
Owner-occupied commercial real estate	1,082		(89)		—		—		993
Investor commercial real estate	155		170		—		—		325
Construction	1,192		135		—		—		1,327
Single tenant lease financing	12,990		454		(2,391)		—		11,053
Public finance	1,732		—		—		—		1,732
Healthcare finance	7,485		(1,131)		—		—		6,354
Small business lending	628		776		(222)		32		1,214
Franchise finance	—		310		—		—		310
Residential mortgage	519		91		(6)		12		616
Home equity	48		63		(51)		5		65
Other consumer	2,507		(334)		(423)		235		1,985
Total	$	29,484	$	1,268	$	(3,121)	$	369	$	28,000


	Three Months Ended September 30, 2020
Allowance for loan losses:	Balance, Beginning of Period		(Credit) Provision Charged to Expense		Losses Charged Off		Recoveries		Balance, End of Period
Commercial and industrial	$	1,477	$	(227)	$	(99)	$	—	$	1,151
Owner-occupied commercial real estate	846		167		—		—		1,013
Investor commercial real estate	130		—		—		—		130
Construction	721		155		—		—		876
Single tenant lease financing	11,318		717		—		—		12,035
Public finance	1,542		191		—		—		1,733
Healthcare finance	4,762		1,232		—		87		6,081
Small business lending	251		230		—		3		484

Residential mortgage	539		26		—		—		565
Home equity	51		(1)		—		3		53
Other consumer	2,828		19		(142)		91		2,796
Total	$	24,465	$	2,509	$	(241)	$	184	$	26,917


	Nine Months Ended September 30, 2020
Allowance for loan losses:	Balance, Beginning of Period		(Credit) Provision Charged to Expense		Losses Charged Off		Recoveries		Balance, End of Period
Commercial and industrial	$	1,521	$	(22)	$	(353)	$	5	$	1,151
Owner-occupied commercial real estate	561		452		—		—		1,013
Investor commercial real estate	109		21		—		—		130
Construction	380		496		—		—		876
Single tenant lease financing	11,175		860		—		—		12,035
Public finance	1,580		153		—		—		1,733
Healthcare finance	3,247		3,490		(743)		87		6,081
Small business lending	54		413		—		17		484

Residential mortgage	657		(81)		(15)		4		565
Home equity	46		(1)		—		8		53
Other consumer	2,510		680		(644)		250		2,796
Total	$	21,840	$	6,461	$	(1,755)	$	371	$	26,917


(in thousands)	Loans						Allowance for Loan Losses
September 30, 2021	Ending Balance: Collectively Evaluated for Impairment		Ending Balance: Individually Evaluated for Impairment		Ending Balance		Ending Balance: Collectively Evaluated for Impairment		Ending Balance: Individually Evaluated for Impairment		Ending Balance
Commercial and industrial	$	106,464	$	678	$	107,142	$	1,576	$	450	$	2,026
Owner-occupied commercial real estate	81,390		3,429		84,819		993		—		993
Investor commercial real estate	28,505		—		28,505		325		—		325
Construction	115,414		—		115,414		1,327		—		1,327
Single tenant lease financing	920,898		1,100		921,998		10,958		95		11,053
Public finance	601,738		—		601,738		1,732		—		1,732
Healthcare finance	416,447		941		417,388		5,831		523		6,354
Small business lending(1)	100,483		2,406		102,889		822		393		1,214
Franchise finance	25,598		—		25,598		310		—		310
Residential mortgage	186,654		2,096		188,750		616		—		616
Home equity	17,946		14		17,960		65		—		65
Other consumer	268,370		27		268,396		1,985		—		1,985
Total	$	2,869,907	$	10,691	$	2,880,597	$	26,540	$	1,461	$	28,000


(in thousands)	Loans						Allowance for Loan Losses
December 31, 2020	Ending Balance: Collectively Evaluated for Impairment		Ending Balance: Individually Evaluated for Impairment		Ending Balance		Ending Balance: Collectively Evaluated for Impairment		Ending Balance: Individually Evaluated for Impairment		Ending Balance
Commercial and industrial	$	74,870	$	517	$	75,387	$	1,146	$	—	$	1,146
Owner-occupied commercial real estate	87,947		1,838		89,785		1,082		—		1,082
Investor commercial real estate	13,902		—		13,902		155		—		155
Construction	110,385		—		110,385		1,192		—		1,192
Single tenant lease financing	942,848		7,324		950,172		9,900		3,090		12,990
Public finance	622,257		—		622,257		1,732		—		1,732
Healthcare finance	527,144		1,010		528,154		7,485		—		7,485
Small business lending	125,589		—		125,589		628		—		628

Residential mortgage	185,241		1,546		186,787		519		—		519
Home equity	19,857		—		19,857		48		—		48
Other consumer	275,642		50		275,692		2,507		—		2,507
Total	$	2,985,682	$	12,285	$	2,997,967	$	26,394	$	3,090	$	29,484

•“Doubtful” - Such loans have been placed on nonaccrual status and may be heavily dependent upon collateral possessing a value that is difficult to determine or based upon some near-term event that lacks clear certainty. These loans have all of the weaknesses of those classified as Substandard; however, based on existing conditions, these weaknesses make full collection of the principal balance highly improbable.

Any loan which becomes 90 days delinquent or for which the full collection of principal and interest may be in doubt will be considered for nonaccrual status. At the time a loan is placed on nonaccrual status, all accrued but unpaid interest will be reversed from interest income. Placing the loan on nonaccrual status does not relieve the borrower of the obligation to repay interest. A loan placed on nonaccrual status may be restored to accrual status when all delinquent principal and interest has been brought current, and the Company expects full payment of the remaining contractual principal and interest.


	September 30, 2021
(in thousands)	Pass		Special Mention		Substandard		Total
Commercial and industrial	$	92,863	$	13,601	$	678	$	107,142
Owner-occupied commercial real estate	76,547		4,843		3,429		84,819
Investor commercial real estate	28,505		—		—		28,505
Construction	104,656		10,758		—		115,414
Single tenant lease financing	915,702		5,196		1,100		921,998
Public finance	600,658		1,080		—		601,738
Healthcare finance	415,845		602		941		417,388
Small business lending(1)	93,037		6,762		3,090		102,889
Franchise finance	25,598		—		—		25,598
Total commercial loans	$	2,353,411	$	42,842	$	9,238	$	2,405,491


	December 31, 2020
(in thousands)	Pass		Special Mention		Substandard		Total
Commercial and industrial	$	74,138	$	732	$	517	$	75,387
Owner-occupied commercial real estate	84,292		3,655		1,838		89,785
Investor commercial real estate	13,902		—		—		13,902
Construction	110,385		—		—		110,385
Single tenant lease financing	932,830		10,018		7,324		950,172
Public finance	622,257		—		—		622,257
Healthcare finance	526,517		627		1,010		528,154
Small business lending(1)	117,474		2,930		5,185		125,589

Total commercial loans	$	2,481,795	$	17,962	$	15,874	$	2,515,631


	September 30, 2021
(in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans		Non- accrual Loans		Total Loans 90 Days or More Past Due and Accruing
Commercial and industrial	$	—	$	—	$	—	$	—	$	107,142	$	107,142	$	678	$	—
Owner-occupied commercial real estate	—		—		—		—		84,819		84,819		—		—
Investor commercial real estate	—		—		—		—		28,505		28,505		3,429		—
Construction	—		—		—		—		115,414		115,414		—		—
Single tenant lease financing	—		—		—		—		921,998		921,998		1,100		—
Public finance	—		—		—		—		601,738		601,738		—		—
Healthcare finance	—		—		—		—		417,388		417,388		—		—
Small business lending(1)	—		—		1,351		1,351		101,538		102,889		1,351		—
Franchise finance	—		—		—		—		25,598		25,598		—		—
Residential mortgage	—		—		378		378		188,372		188,750		1,253		—
Home equity	—		—		—		—		17,960		17,960		14		—
Other consumer	86		12		17		115		268,281		268,396		26		—
Total	$	86	$	12	$	1,746	$	1,844	$	2,878,753	$	2,880,597	$	7,851	$	—


	December 31, 2020
(in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans		Non- accrual Loans		Total Loans 90 Days or More Past Due and Accruing
Commercial and industrial	$	—	$	—	$	—	$	—	$	75,387	$	75,387	$	—	$	—
Owner-occupied commercial real estate	—		—		—		—		89,785		89,785		1,838		—
Investor commercial real estate	—		—		—		—		13,902		13,902		—		—
Construction	—		—		—		—		110,385		110,385		—		—
Single tenant lease financing	—		—		4,680		4,680		945,492		950,172		7,116		—
Public finance	—		—		—		—		622,257		622,257		—		—
Healthcare finance	—		—		—		—		528,154		528,154		—		—
Small business lending	—		—		—		—		125,589		125,589		—		—

Residential mortgage	49		—		269		318		186,469		186,787		1,183		—
Home equity	—		15		—		15		19,842		19,857		—		—
Other consumer	176		51		5		232		275,460		275,692		46		—
Total	$	225	$	66	$	4,954	$	5,245	$	2,992,722	$	2,997,967	$	10,183	$	—

A loan is designated as impaired, in accordance with the impairment accounting guidance, when, based on current information or events, it is probable that the Company will be unable to collect all amounts due (principal and interest) according to the contractual terms of the loan agreement. Payments with delays generally not exceeding 90 days outstanding are not considered impaired. Certain nonaccrual and substantially all delinquent loans more than 90 days past due may be considered to be impaired. Generally, loans are placed on nonaccrual status at 90 days past due and accrued interest is reversed against earnings, unless the loan is well-secured and in the process of collection. The accrual


	September 30, 2021						December 31, 2020
(in thousands)	Recorded Balance		Unpaid Principal Balance		Specific Allowance		Recorded Balance		Unpaid Principal Balance		Specific Allowance
Loans without a specific valuation allowance
Commercial and industrial	$	3,429	$	3,486	$	—	$	517	$	517	$	—
Owner-occupied commercial real estate	—		—		—		1,838		1,850		—


Single tenant lease financing	—		—		—		1,315		1,334		—

Healthcare finance	—		—		—		1,010		1,010		—
Small business lending(1)	1,377		1,486		—		—		—		—

Residential mortgage	2,096		2,223		—		1,546		1,652		—
Home equity	14		15		—		—		—		—
Other consumer	27		82		—		50		120		—
Total	6,943		7,292		—		6,276		6,483		—
Loans with a specific valuation allowance
Commercial and industrial	678		701		450		—		—		—



Single tenant lease financing	1,100		1,123		95		6,009		6,036		3,090

Healthcare Finance	941		941		523		—		—		—
Small business lending	1,029		1,029		393		—		—		—



Total	3,748		3,794		1,461		6,009		6,036		3,090
Total impaired loans	$	10,691	$	11,086	$	1,461	$	12,285	$	12,519	$	3,090


	Three Months Ended								Nine Months Ended
	September 30, 2021				September 30, 2020				September 30, 2021				September 30, 2020
(in thousands)	Average Balance		Interest Income		Average Balance		Interest Income		Average Balance		Interest Income		Average Balance		Interest Income
Loans without a specific valuation allowance
Commercial and industrial	$	—	$	—	$	971	$	18	$	259	$	9	$	1,210	$	54
Owner-occupied commercial real estate	3,457		—		3,586		29		3,297		—		4,244		60


Single tenant lease financing	—		—		—		—		100		5		—		—

Healthcare finance	—		—		692		8		336		—		231		8
Small business lending(1)	1,315		—		—		—		1,005		—		—		—

Residential mortgage	2,267		15		1,233		—		2,138		28		1,286		—
Home equity	14		—		—		—		13		—		—		—
Other consumer	23		—		68		—		27		—		63		—
Total	7,076		15		6,550		55		7,175		42		7,034		122
Loans with a specific valuation allowance
Commercial and industrial	690		—		182		18		677		—		196		18
Owner-occupied commercial real estate	—		—		—		29		473		—		—		29


Single tenant lease financing	2,048		—		5,978		4		4,875		—		5,113		4

Healthcare Finance	956		37		—		—		809		73		—		—
Small business lending	1,203		—		—		—		401		—		—		—




Total	4,897		37		6,160		51		7,235		73		5,309		51
Total impaired loans	$	11,973	$	52	$	12,710	$	106	$	14,410	$	115	$	12,343	$	173

The loan portfolio includes TDRs, which are loans that have been modified to grant economic concessions to borrowers who have experienced financial difficulties. These concessions typically result from loss mitigation efforts and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance, or other actions. Certain TDRs are classified as nonperforming at the time of restructuring and typically are returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally not less than six consecutive months.

When loans are modified in a TDR, any possible impairment similar to other impaired loans is evaluated based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan agreement, or using the current fair value of the collateral, less selling costs, for collateral dependent loans. If it is determined that the value of the modified loan is less than the recorded balance of the loan, impairment is recognized through a specific allowance or charge-off to the allowance. In periods subsequent to modification, all TDRs, including those that have payment defaults, are evaluated for possible impairment, and impairment is recognized through the allowance.

In the course of working with troubled borrowers, the Company may choose to restructure the contractual terms of certain loans in an effort to work out an alternative payment schedule with the borrower in order to optimize the collectability of the loan. Any loan modification is reviewed by the Company to identify whether a TDR has occurred when the Company grants a concession to the borrower that it would not otherwise consider based on economic or legal reasons related to a borrower’s financial difficulties. Terms may be modified to fit the ability of the borrower to repay in line with its current financial status or the loan may be restructured to obtain additional collateral and/or guarantees to support the debt, or a combination of the two.

modification outstanding recorded investment of $0.8 million. The Company did not allocate a specific allowance for that loan as of September 30, 2021. The modifications consisted of interest-only payments for a period of time. There were no loans classified as a new TDR during the three months ended September 30, 2020 and one portfolio residential mortgage loan classified as a new TDR during the nine months ended September 30, 2020 with a pre-modification and post-modification outstanding recorded investment of $0.8 million. The Company did not allocate a specific allowance for that loan as of September 30, 2020. The modification consisted of an extension of the maturity date. There were no performing TDRs that had payment defaults within the twelve months following modification during the three and nine months ended September 30, 2021 and 2020, respectively.

Additionally, Section 4013 of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) provides that loan modifications due to the impact of COVID-19 that would otherwise be classified as TDRs under GAAP will not be so classified. Modifications within the scope of this relief are in effect from the period beginning March 1, 2020 until the earlier of January 1, 2022 or 60 days after the date on which the national emergency related to the COVID-19 pandemic formally terminates. As of September 30, 2021, the Company had thirteen loans totaling $3.0 million in non-TDR loan modifications due to COVID-19.