| Loans and allowance for credit losses | Loans and allowance for credit losses: Loans outstanding at March 31, 2020 and December 31, 2019 , by class of financing receivable are as follows: March 31, December 31, 2020 2019 Commercial and industrial $ 1,020,484 $ 1,034,036 Construction 599,479 551,101 Residential real estate: 1-to-4 family mortgage 743,336 710,454 Residential line of credit 246,527 221,530 Multi-family mortgage 94,638 69,429 Commercial real estate: Owner occupied 686,543 630,270 Non-owner occupied 910,822 920,744 Consumer and other 266,209 272,078 Gross loans 4,568,038 4,409,642 Less: Allowance for credit losses (89,141 ) (31,139 ) Net loans $ 4,478,897 $ 4,378,503 As of March 31, 2020 and December 31, 2019 , $ 422,916 and $ 412,966 , respectively, of qualifying residential mortgage loans (including loans held for sale) and $ 571,358 and $ 545,540 , respectively, of qualifying commercial mortgage loans were pledged to the Federal Home Loan Bank of Cincinnati securing advances against the Bank’s line of credit. As of March 31, 2020 and December 31, 2019 , $ 1,460,435 and $ 1,407,662 , respectively, of qualifying loans were pledged to the Federal Reserve Bank under the Borrower-in-Custody program. The components of amortized cost for loans on the consolidated balance sheet excludes accrued interest receivable since the Company elected to present accrued interest receivable separately on the balance sheet. As of March 31, 2020 , total accrued interest receivable on loans was $16,019 . As of January 1, 2020, the Company’s policy for the allowance changed with the adoption of CECL. As permitted, the new guidance was implemented using a modified retrospective approach with the impact of the initial adoption being recorded through retained earnings at January 1, 2020, with no restatement of prior periods. Before January 1, 2020, the Company calculated the allowance on an incurred loss approach. As of January 1, 2020, the Company calculates an expected credit loss using a lifetime loss rate methodology. As a result of the difference in methodology between periods, disclosures presented below may not be comparative in nature. The Company utilizes probability-weighted forecasts, which consider multiple macroeconomic variables from a third-party vendor that are applicable to the type of loan. The weighting of the economic forecast scenarios, macroeconomic variables, and the reasonable and supportable forecast period at the macroeconomic variable-level were reviewed and approved by the Company's forecast governance committee based on expectations of future economic conditions. Each of the Company's loss rate models incorporate forward-looking macroeconomic projections throughout the reasonable and supportable forecast period and the subsequent historical reversion at the macroeconomic variable input level. In order to estimate the life of a loan, the contractual term of the loan is adjusted for estimated prepayments based on market information and the Company’s prepayment history. The Company's loss rate models estimate the lifetime loss rate for pools of loans by combining the calculated loss rate based on each variable within the model (including the macroeconomic variables). The lifetime loss rate for the pool is then multiplied by the loan balances to determine the expected credit losses on the pool. The Company considers the need to qualitatively adjust its modeled quantitative expected credit loss estimate for information not already captured in the model loss estimation process. These qualitative factor adjustments may increase or decrease the Company’s estimate of expected credit losses. The Company reviews the qualitative adjustments so as to validate that information that has already been considered and included in the modeled quantitative loss estimation process is not also included in the qualitative adjustment. The Company considers the qualitative factors that are relevant to the institution as of the reporting date, which may include, but are not limited to: levels of and trends in delinquencies and performance of loans; levels of and trends in write-offs and recoveries collected; trends in volume and terms of loans; effects of any changes in reasonable and supportable economic forecasts; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and expertise; available relevant information sources that contradict the Company’s own forecast; effects of changes in prepayment expectations or other factors affecting assessments of loan contractual terms; industry conditions; and effects of changes in credit concentrations. The quantitative models require loan data and macroeconomic variables based on the inherent credit risks in each portfolio to more accurately measure the credit risks associated with each. Each of the quantitative models pools loans with similar risk characteristics and collectively assesses the lifetime loss rate for each pool to estimate its expected credit loss. When a loan no longer shares similar risk characteristics with other loans in any given pool, the loan is individually assessed. The Company has determined the following circumstances in which a loan may require an individual evaluation: collateral dependent loans; loans for which foreclosure is probable; troubled debt restructurings (“TDRs”) and reasonably expected TDRs. A loan is deemed collateral dependent when 1) the borrower is experiencing financial difficulty and 2) the repayment is expected to be primarily through sale or operation of the collateral. The allowance for credit losses for collateral dependent loans as well as loans where foreclosure is probable is calculated as the amount for which the loan’s amortized cost basis exceeds fair value. Fair value is determined based on appraisals performed by qualified appraisers and reviewed by qualified personnel. In cases where repayment is to be provided substantially through the sale of collateral, the Company reduces the fair value by the estimated costs to sell. Loans experiencing financial difficulty for which a concession has not yet been provided may be identified as reasonably expected TDRs. Reasonably expected TDRs use the same methodology as TDRs. In cases where the expected credit loss can only be captured through a discounted cash flow analysis (such as an interest rate modification for a TDR loan), the allowance is measured by the amount which the loan’s amortized cost exceeds the discounted cash flow analysis. The allowance for credit losses on a TDR or a reasonably expected TDR is calculated individually using a discounted cash flow methodology, unless the loan is deemed to be collateral dependent or foreclosure is probable. The Company’s changes in reasonable and supportable forecasts of macroeconomic variables, primarily due to the impact of the COVID-19 pandemic, along with projected deterioration required the Company to recognize a significant increase in provision for credit losses during the first quarter of 2020. Specifically, deterioration in the U.S. economy and labor markets including rising unemployment and forecast deterioration in the housing market data impacted the Company’s financial assets. Additionally, the acquisition of loans from Farmers National increased the allowance for credit losses by $ 4,494 during the quarter. See Note 2, "Mergers and acquisitions" for additional details related to PCD loans acquired on February 14, 2020. The following provides the changes in the allowance for credit losses by class of financing receivable for the three months ended March 31, 2020 and 2019 : Commercial and industrial Construction 1-to-4 family residential mortgage Residential line of credit Multi- family residential mortgage Commercial real estate owner occupied Commercial real estate non-owner occupied Consumer and other Total Three Months Ended March 31, 2020 Beginning balance - $ 4,805 $ 10,194 $ 3,112 $ 752 $ 544 $ 4,109 $ 4,621 $ 3,002 $ 31,139 Impact of adopting ASC 326 on non-purchased credit deteriorated loans 5,300 1,533 7,920 3,461 340 1,879 6,822 3,633 30,888 Impact of adopting ASC 326 on purchased credit deteriorated loans 82 150 421 (3 ) — 162 184 (438 ) 558 Provision for credit losses 1,829 10,954 1,664 1,985 1,444 3,038 5,935 1,115 27,964 Recoveries of loans 88 — 24 15 — 14 — 193 334 Loans charged off (1,234 ) — (242 ) — — (209 ) — (726 ) (2,411 ) Initial allowance on loans purchased with deteriorated credit quality 11 11 107 3 — 54 443 40 669 Ending balance - $ 10,881 $ 22,842 $ 13,006 $ 6,213 $ 2,328 $ 9,047 $ 18,005 $ 6,819 $ 89,141 Commercial and industrial Construction 1-to-4 family residential mortgage Residential line of credit Multi- family residential mortgage Commercial real estate owner occupied Commercial real estate non-owner occupied Consumer and other Total Three Months Ended March 31, 2019 Beginning balance - $ 5,348 $ 9,729 $ 3,428 $ 811 $ 566 $ 3,132 $ 4,149 $ 1,769 $ 28,932 Provision for credit losses 333 28 (65 ) (73 ) (27 ) (121 ) 434 882 1,391 Recoveries of loans 12 1 13 25 — 87 — 224 362 Loans charged off (179 ) — (81 ) (32 ) — — — (579 ) (871 ) Ending balance - $ 5,514 $ 9,758 $ 3,295 $ 731 $ 539 $ 3,098 $ 4,583 $ 2,296 $ 29,814 The following table provides the amount of the allowance for credit losses by class of financing receivable for loans individually evaluated for impairment, loans collectively evaluated for impairment and loans acquired with deteriorated credit quality as of December 31, 2019 : December 31, 2019 Commercial and industrial Construction 1-to-4 family residential mortgage Residential line of credit Multi- family residential mortgage Commercial real estate owner occupied Commercial real estate non-owner occupied Consumer and other Total Amount of allowance Individually evaluated for $ 241 $ — $ 8 $ 9 $ — $ 238 $ 399 $ — $ 895 Collectively evaluated for 4,457 10,192 2,940 743 544 3,853 3,909 1,933 28,571 Acquired with deteriorated 107 2 164 — — 18 313 1,069 1,673 Ending balance - $ 4,805 $ 10,194 $ 3,112 $ 752 $ 544 $ 4,109 $ 4,621 $ 3,002 $ 31,139 The following table provides the amount of loans by class of financing receivable for loans individually evaluated for impairment, loans collectively evaluated for impairment and loans acquired with deteriorated credit quality as of December 31, 2019 : December 31, 2019 Commercial and industrial Construction 1-to-4 family residential mortgage Residential line of credit Multi- family residential mortgage Commercial real estate owner occupied Commercial real estate non-owner occupied Consumer and other Total Loans, net of unearned Individually evaluated $ 9,026 $ 2,061 $ 1,347 $ 579 $ — $ 2,993 $ 7,755 $ 49 $ 23,810 Collectively evaluated 1,023,326 546,156 689,769 220,878 69,429 621,386 902,792 254,944 4,328,680 Acquired with deteriorated 1,684 2,884 19,338 73 — 5,891 10,197 17,085 57,152 Ending balance - $ 1,034,036 $ 551,101 $ 710,454 $ 221,530 $ 69,429 $ 630,270 $ 920,744 $ 272,078 $ 4,409,642 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, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans that share similar risk characteristics collectively. Loans that do not share similar risk characteristics are evaluated individually. The Company uses the following definitions for risk ratings: Pass. Loans rated Pass include those that are adequately performing and collateralized and which management believes do not have conditions that have occurred or may occur which would result in the loan being downgraded into an inferior category. Watch. Loans rated as Watch include those that management believes have conditions that have occurred, or may occur, which could result in the loan being downgraded to an inferior category. Also included in watch are loans rated as special mention, which 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 rated 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 rated 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. Doubtful. Loans classified as Doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Risk ratings are updated on an ongoing basis and are subject to change by continuous loan monitoring processes. The following table presents the credit quality of our loan portfolio by year of origination as of March 31, 2020 . Revolving loans are presented separately. Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal constitutes a current period origination. Generally, current period renewals of credit are reunderwritten at the point of renewal and considered current period originations for the purposes of the table below. As of March 31, 2020 Term Loans Amortized Cost Basis by Origination Year 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Basis Total Commercial and industrial Pass $ 29,008 $ 178,014 $ 82,142 $ 46,942 $ 38,723 $ 34,087 $ 502,092 $ 911,008 Watch — 10,643 29,243 6,647 5,766 4,691 32,191 89,181 Substandard — 2,385 4,649 1,474 1,386 3,765 6,636 20,295 Doubtful — — — — — — — — Total 29,008 191,042 116,034 55,063 45,875 42,543 540,919 1,020,484 Construction Pass 22,601 180,870 103,731 59,843 33,080 81,213 98,582 579,920 Watch — 529 825 10,099 769 2,877 — 15,099 Substandard — 854 — 34 — 3,241 212 4,341 Doubtful — 101 — — 18 — — 119 Total 22,601 182,354 104,556 69,976 33,867 87,331 98,794 599,479 Residential real estate: 1-to-4 family mortgage Pass 46,111 183,701 149,607 97,244 68,876 156,697 — 702,236 Watch 325 3,425 1,195 2,286 3,921 13,358 — 24,510 Substandard — 978 1,584 3,848 1,636 8,020 — 16,066 Doubtful — — — 16 68 440 — 524 Total 46,436 188,104 152,386 103,394 74,501 178,515 — 743,336 Residential line of credit Pass 88 586 426 333 608 4,404 236,775 243,220 Watch — — — 14 — — 858 872 Substandard — — — — — 79 1,836 1,915 Doubtful — — — — — — 520 520 Total 88 586 426 347 608 4,483 239,989 246,527 Multi-family mortgage Pass 18,706 13,848 6,819 23,602 2,972 28,629 — 94,576 Watch — — — — — 62 — 62 Substandard — — — — — — — — Doubtful — — — — — — — — Total 18,706 13,848 6,819 23,602 2,972 28,691 — 94,638 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Basis Total Commercial real estate Owner occupied Pass 23,592 143,780 86,554 74,223 68,452 169,360 59,507 625,468 Watch — 2,930 1,530 23,001 3,915 15,473 3,263 50,112 Substandard — 1,804 321 982 60 6,555 1,241 10,963 Doubtful — — — — — — — — Total 23,592 148,514 88,405 98,206 72,427 191,388 64,011 686,543 Non-owner occupied Pass 27,593 144,200 192,928 131,450 178,873 182,983 24,904 882,931 Watch — — 1,716 312 214 11,705 133 14,080 Substandard — 32 208 — 385 13,186 — 13,811 Doubtful — — — — — — — — Total 27,593 144,232 194,852 131,762 179,472 207,874 25,037 910,822 Consumer and other loans Pass 13,197 65,905 49,483 31,174 44,369 32,513 7,591 244,232 Watch — 551 1,034 1,611 3,321 9,062 588 16,167 Substandard 20 79 592 691 650 2,036 352 4,420 Doubtful — 146 373 421 104 346 — 1,390 Total 13,217 66,681 51,482 33,897 48,444 43,957 8,531 266,209 Total Loans Pass 180,896 910,904 671,690 464,811 435,953 689,886 929,451 4,283,591 Watch 325 18,078 35,543 43,970 17,906 57,228 37,033 210,083 Substandard 20 6,132 7,354 7,029 4,117 36,882 10,277 71,811 Doubtful — 247 373 437 190 786 520 2,553 Total $ 181,241 $ 935,361 $ 714,960 $ 516,247 $ 458,166 $ 784,782 $ 977,281 $ 4,568,038 The following table shows credit quality indicators by class of financing receivable at December 31, 2019. December 31, 2019 Pass Watch Substandard Total Loans, excluding purchased credit impaired loans Commercial and industrial $ 946,247 $ 66,910 $ 19,195 $ 1,032,352 Construction 541,201 4,790 2,226 548,217 Residential real estate: 1-to-4 family mortgage 666,177 11,380 13,559 691,116 Residential line of credit 218,086 1,343 2,028 221,457 Multi-family mortgage 69,366 63 — 69,429 Commercial real estate: Owner occupied 576,737 30,379 17,263 624,379 Non-owner occupied 876,670 24,342 9,535 910,547 Consumer and other 248,632 3,304 3,057 254,993 Total loans, excluding purchased credit impaired loans $ 4,143,116 $ 142,511 $ 66,863 $ 4,352,490 Purchased credit impaired loans Commercial and industrial $ — $ 1,224 $ 460 $ 1,684 Construction — 2,681 203 2,884 Residential real estate: 1-to-4 family mortgage — 15,091 4,247 19,338 Residential line of credit — — 73 73 Multi-family mortgage — — — — Commercial real estate: Owner occupied — 4,535 1,356 5,891 Non-owner occupied — 6,617 3,580 10,197 Consumer and other — 13,521 3,564 17,085 Total purchased credit impaired loans $ — $ 43,669 $ 13,483 $ 57,152 Total loans $ 4,143,116 $ 186,180 $ 80,346 $ 4,409,642 Nonaccrual and Past Due Loans Nonperforming loans include loans that are no longer accruing interest (nonaccrual loans) and loans past due ninety or more days and still accruing interest. The following tables provide information on nonaccrual and past due loans as of March 31, 2020 and December 31, 2019. Purchased credit impaired ("PCI") loans have historically not been included in the nonperforming disclosures as these loans are considered to be performing, even though they may be contractually past due. This is because any non-payment of contractual principal or interest was considered in the periodic re-estimation of expected cash flows and was included in the 2019 loan loss provision or future period yield adjustments. Under PCD accounting, management considers changes in the credit quality of the borrower as part of its regular estimation of expected credit losses and does not make the same future yield adjustments as under the PCI accounting. Consequently, PCD loans that are contractually past due or on nonaccrual status, including those formerly accounted for as PCI loans, are included in the March 31, 2020 nonperforming disclosures. The following table represents an analysis of the aging by class of financing receivable as of March 31, 2020: March 31, 2020 30-89 days past due 90 days or more and accruing interest Non-accrual loans Loans current on payments and accruing interest Total Commercial and industrial $ 5,015 $ 728 $ 3,584 $ 1,011,157 $ 1,020,484 Construction 6,770 183 1,439 591,087 599,479 Residential real estate: 1-to-4 family mortgage 9,569 3,975 5,153 724,639 743,336 Residential line of credit 450 652 600 244,825 246,527 Multi-family mortgage 415 — — 94,223 94,638 Commercial real estate: Owner occupied 2,008 1 1,903 682,631 686,543 Non-owner occupied 2,931 32 9,735 898,124 910,822 Consumer and other 2,852 888 2,133 260,336 266,209 Total $ 30,010 $ 6,459 $ 24,547 $ 4,507,022 $ 4,568,038 The following table provides the amortized cost basis of loans on non-accrual status by class of financing receivable as of March 31, 2020: March 31, 2020 Beginning of period non-accrual amortized cost End of period non-accrual amortized cost Related allowance Non-accrual with no related allowance Interest income on non-accrual loans Commercial and industrial $ 5,586 $ 3,584 $ 185 $ 2,496 $ 152 Construction 1,254 1,439 14 1,226 27 Residential real estate: 1-to-4 family mortgage 4,585 5,153 54 176 7 Residential line of credit 489 600 6 151 1 Multi-family mortgage — — — — — Commercial real estate: Owner occupied 2,285 1,903 79 1,098 21 Non-owner occupied 9,460 9,735 442 2,339 19 Consumer and other 1,623 2,133 84 — — Total $ 25,282 $ 24,547 $ 864 $ 7,486 $ 227 The following table provides the period-end amounts of loans that are past due, loans not accruing interest and loans current on payments accruing interest by category at December 31, 2019: December 31, 2019 30-89 days past due 90 days or more and accruing interest Non-accrual loans Purchased Credit Impaired loans Loans current on payments and accruing interest Total Commercial and industrial $ 1,918 $ 291 $ 5,587 $ 1,684 $ 1,024,556 $ 1,034,036 Construction 1,021 42 1,087 2,884 546,067 551,101 Residential real estate: 1-to-4 family mortgage 10,738 3,965 3,332 19,338 673,081 710,454 Residential line of credit 658 412 416 73 219,971 221,530 Multi-family mortgage 63 — — — 69,366 69,429 Commercial real estate: Owner occupied 1,375 — 1,793 5,891 621,211 630,270 Non-owner occupied 327 — 7,880 10,197 902,340 920,744 Consumer and other 2,377 833 967 17,085 250,816 272,078 Total $ 18,477 $ 5,543 $ 21,062 $ 57,152 $ 4,307,408 $ 4,409,642 Impaired loans recognized in conformity with ASC 310 at December 31, 2019 segregated by class, were as follows: December 31, 2019 Recorded Unpaid Related With a related allowance recorded: Commercial and industrial $ 6,080 $ 8,350 $ 241 Construction — — — Residential real estate: 1-to-4 family mortgage 264 324 8 Residential line of credit 320 320 9 Multi-family mortgage — — — Commercial real estate: Owner occupied 756 1,140 238 Non-owner occupied 6,706 6,747 399 Consumer and other — — — Total $ 14,126 $ 16,881 $ 895 With no related allowance recorded: Commercial and industrial $ 2,946 $ 3,074 $ — Construction 2,061 2,499 — Residential real estate: 1-to-4 family mortgage 1,083 1,449 — Residential line of credit 259 280 — Multi-family mortgage — — — Commercial real estate: Owner occupied 2,237 2,627 — Non-owner occupied 1,049 1,781 — Consumer and other 49 49 — Total $ 9,684 $ 11,759 $ — Total impaired loans $ 23,810 $ 28,640 $ 895 Average recorded investment and interest income on a cash basis recognized during the three months ended March 31, 2019 on impaired loans, segregated by class, were as follows: Three months ended March 31, 2019 Average recorded investment Interest income recognized (cash basis) With a related allowance recorded: Commercial and industrial $ 1,902 $ 38 Construction — — Residential real estate: 1-to-4 family mortgage 275 2 Residential line of credit — — Multi-family mortgage — — Commercial real estate: Owner occupied 375 2 Non-owner occupied 5,668 — Consumer and other — — Total $ 8,220 $ 42 With no related allowance recorded: Commercial and industrial 1,044 14 Construction 1,221 48 Residential real estate: 1-to-4 family mortgage 656 8 Residential line of credit 425 2 Multi-family mortgage — — Commercial real estate: Owner occupied 1,957 28 Non-owner occupied 1,049 — Consumer and other 72 2 Total $ 6,424 $ 102 Total impaired loans $ 14,644 $ 144 Purchased Credit Impaired Loans As of December 31, 2019 , the carrying value of PCI loans accounted for under ASC 310-30 "Loans and Debt Securities Acquired with Deteriorated Credit Quality" was $ 57,152 . The following table presents changes in the value of the accretable yield for PCI loans for the periods indicated. Three Months Ended March 31, 2019 Balance at the beginning of period $ (16,587 ) Principal reductions and other reclassifications from nonaccretable difference 220 Accretion 2,183 Changes in expected cash flows (630 ) Balance at end of period $ (14,814 ) Included in the ending balance of the accretable yield on PCI loans at December 31, 2019 , is a purchase accounting liquidity discount of $292 . There is also a purchase accounting nonaccretable credit discount of $3,537 related to the PCI loan portfolio at December 31, 2019 , and an accretable credit and liquidity discount on non-PCI loans of $ 8,964 and $3,924 , respectively, as of December 31, 2019 . Interest revenue, through accretion of the difference between the recorded investment of the loans and the expected cash flows, is being recognized on all PCI loans. Accretion of interest income amounting to $2,183 was recognized on PCI loans during the three months ended March 31, 2019 . This includes both the contractual interest income recognized and the purchase accounting contribution through accretion of the liquidity discount for changes in estimated cash flows. The total purchase accounting contribution through accretion excluding contractual interest collected for all purchased loans was $1,831 for the three months ended March 31, 2019 . Troubled Debt Restructuring (TDRs) As of March 31, 2020 and December 31, 2019 , the Company has a recorded investment in troubled debt restructurings of $11,566 and $ 12,206 , respectively. The modifications included extensions of the maturity date and/or a stated rate of interest to one lower than the current market rate to borrowers experiencing financial difficulty. The Company has calculated $143 and $ 360 of specific reserves for those loans at March 31, 2020 and December 31, 2019 , respectively. There were no commitments to lend any additional amounts to these customers for either period end. Of these loans, $4,893 and $ 5,201 were classified as non-accrual loans as of March 31, 2020 and December 31, 2019 , respectively. The following tables present the financial effect of TDRs recorded during the periods indicated. Three Months Ended March 31, 2020 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Residential real estate: 1-to-4 family mortgage 1 $ 64 $ 64 $ — Total 1 $ 64 $ 64 $ — Three Months Ended March 31, 2019 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Commercial and industrial 2 $ 3,188 $ 3,188 $ — Total 2 $ 3,188 $ 3,188 $ — There were no loans modified as troubled debt restructurings for which there was a payment default within twelve months following the modification during the three months ended March 31, 2020 and 2019 . A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. The terms of certain other loans were modified during the years ended March 31, 2020 and 2019 that did not meet the definition of a troubled debt restructuring. The modification of these loans usually involve either a modification of the terms of a loan to borrowers who are not experiencing financial difficulties or an insignificant delay in payments. During the three months ended March 31, 2020, the Company executed deferrals on loans with principal balances totaling $ 35,461 in connection with the COVID-19 relief provided by the CARES Act. These deferrals typically ranged from sixty to ninety days and were not considered troubled debt restructurings under the interagency regulatory guidance or the CARES Act issued in March 2020. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the company’s internal underwriting policy. For loans for which the repayment (based on the Company's assessment) is expected to be provided substantially through the operation or sale of collateral and the borrower is experiencing financial difficulty, the following table presents the loans and the corresponding individually assessed allowance for credit losses by class of financing receivable. March 31, 2020 Type of Collateral Real Estate Land Farmland Equipment Individually assessed allowance for credit loss Commercial and industrial $ — $ — $ — $ 36 $ — Construction — 1,024 — — — Residential real estate: 1-to-4 family mortgage 125 — — — — Residential line of credit 320 — — — 9 Multi-family mortgage — — — — — Commercial real estate: Owner occupied 744 — — — 41 Non-owner occupied 2,391 — — — 81 Consumer and other — — 332 — — Total $ 3,580 $ 1,024 $ 332 $ 36 $ 131 |
