| Allowance for Credit Losses | Allowance for Credit Losses For the periods indicated, the following tables summarize the activity in the allowance for credit losses on loans which is recorded as a contra asset, and the reserve for unfunded commitments which is recorded on the balance sheet within other liabilities: Allowance for credit losses – Three months ended March 31, 2023 (in thousands) Beginning Charge-offs Recoveries Provision (benefit) Ending Commercial real estate: CRE non-owner occupied $ 30,962 $ — $ — $ 2,001 $ 32,963 CRE owner occupied 14,014 — — 545 14,559 Multifamily 13,132 — — 741 13,873 Farmland 3,273 — — 269 3,542 Total commercial real estate loans 61,381 — — 3,556 64,937 Consumer: SFR 1-4 1st DT liens 11,268 — — 652 11,920 SFR HELOCs and junior liens 11,413 (42) 65 (522) 10,914 Other 1,958 (142) 51 195 2,062 Total consumer loans 24,639 (184) 116 325 24,896 Commercial and industrial 13,597 (1,574) 53 (7) 12,069 Construction 5,142 — — 513 5,655 Agriculture production 906 — 1 (74) 833 Leases 15 — — 2 17 Allowance for credit losses on loans 105,680 (1,758) 170 4,315 108,407 Reserve for unfunded commitments 4,315 — — (120) 4,195 Total $ 109,995 $ (1,758) $ 170 $ 4,195 $ 112,602 In determining the allowance for credit losses, accruing loans with similar risk characteristics are generally evaluated collectively. To estimate expected losses the Company generally utilizes historical loss trends and the remaining contractual lives of the loan portfolios to determine estimated credit losses through a reasonable and supportable forecast period. Individual loan credit quality indicators including loan grade and borrower repayment performance have been statistically correlated with historical credit losses and various econometrics, including California unemployment, gross domestic product, and corporate bond yields. Model forecasts may be adjusted for inherent limitations or biases that have been identified through independent validation and back-testing of model performance to actual realized results. The Company utilizes a forecast period of approximately eight quarters and obtains the forecast data from publicly available sources as of the balance sheet date. This forecast data continues to evolve and included improving shifts in the magnitude of changes for both the unemployment and GDP factors leading up to the balance sheet date, particularly CA unemployment trends. As compared to historical norms, inflation remains elevated from continued disruptions in the supply chain, wage pressures, and higher living costs such as housing and food prices Despite the expected continued benefit to the net interest income of the Company from the elevated rate environment, Management notes the rapid intervals of rate increases by the Federal Reserve and flattening or inversion of the yield curve, have boosted expectations of the US entering a recession within 12 months. As a result, management continues to believe that certain credit weakness are likely present in the overall economy and that it is appropriate to cautiously maintain a reserve level that incorporates such risk factors. Purchased loans and leases that reflect a more-than-insignificant deterioration of credit from origination are considered PCD. For PCD loans and leases, the initial estimate of expected credit losses is recognized in the ACL on the date of acquisition using the same methodology as other loans and leases held-for-investment. The following table provides a summary of loans and leases purchased as part of the VRB acquisition with credit deterioration at acquisition: As of March 25, 2022 (in thousands) Commercial Real Estate Consumer Commercial and Industrial Construction Agriculture Production Total Par value $ 27,237 $ 3,877 $ 2,674 $ 25,645 $ 9,080 $ 68,513 ACL at acquisition (1,573) (144) (81) (201) (38) (2,037) Non-credit discount (2,305) (360) (47) (232) (12) (2,956) Purchase price $ 23,359 $ 3,373 $ 2,546 $ 25,212 $ 9,030 $ 63,520 For the periods indicated, the following tables summarize the activity in the allowance for credit losses on loans which is recorded as a contra asset, and the reserve for unfunded commitments which is recorded on the balance sheet within other liabilities: Allowance for credit losses – Year ended December 31, 2022 (in thousands) Beginning ACL of PCD Loans Charge-offs Recoveries Provision Ending Balance Commercial real estate: CRE non-owner occupied $ 25,739 $ 746 $ — $ 1 $ 4,476 $ 30,962 CRE owner occupied 10,691 63 — 2 3,258 14,014 Multifamily 12,395 — — — 737 13,132 Farmland 2,315 764 (294) — 488 3,273 Total commercial real estate loans 51,140 1,573 (294) 3 8,959 61,381 Consumer: SFR 1-4 1st DT liens 10,723 144 — 79 322 11,268 SFR HELOCs and junior liens 10,510 — (22) 429 496 11,413 Other 2,241 — (572) 235 54 1,958 Total consumer loans 23,474 144 (594) 743 872 24,639 Commercial and industrial 3,862 81 (697) 1,157 9,194 13,597 Construction 5,667 201 — — (726) 5,142 Agriculture production 1,215 38 — 4 (351) 906 Leases 18 — — — (3) 15 Allowance for credit losses on loans 85,376 2,037 (1,585) 1,907 17,945 105,680 Reserve for unfunded commitments 3,790 — — — 525 4,315 Total $ 89,166 $ 2,037 $ (1,585) $ 1,907 $ 18,470 $ 109,995 Allowance for credit losses – Three months ended March 31, 2022 (in thousands) Beginning ACL of PCD Loans Charge-offs Recoveries Provision Ending Balance Commercial real estate: CRE non-owner occupied $ 25,739 $ 746 $ — $ — $ 1,570 $ 28,055 CRE owner occupied 10,691 63 — — 1,317 12,071 Multifamily 12,395 — — — (408) 11,987 Farmland 2,315 764 (294) — 94 2,879 Total commercial real estate loans 51,140 1,573 (294) — 2,573 54,992 Consumer: SFR 1-4 1st DT liens 10,723 144 — 40 (238) 10,669 SFR HELOCs and junior liens 10,510 — — 175 158 10,843 Other 2,241 — (119) 71 (26) 2,167 Total consumer loans 23,474 144 (119) 286 (106) 23,679 Commercial and industrial 3,862 81 (330) 887 4,542 9,042 Construction 5,667 201 — — 1,569 7,437 Agriculture production 1,215 38 — 1 (371) 883 Leases 18 — — — (2) 16 Allowance for credit losses on loans 85,376 2,037 (743) 1,174 8,205 96,049 Reserve for unfunded commitments 3,790 — — — 125 3,915 Total $ 89,166 $ 2,037 $ (743) $ 1,174 $ 8,330 $ 99,964 As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including, but not limited to, trends relating to (i) the level of criticized and classified loans, (ii) net charge-offs, (iii) non-performing loans, and (iv) delinquency within the portfolio. The Company analyzes loans individually to classify the loans as to credit risk and grading. This analysis is performed annually for all outstanding balances greater than $1 million and non-homogeneous loans, such as commercial real estate loans, unless other indicators, such as delinquency, trigger more frequent evaluation. Loans below the $1 million threshold and homogenous in nature are evaluated as needed for proper grading based on delinquency and borrower credit scores. The Company utilizes a risk grading system to assign a risk grade to each of its loans. Loans are graded on a scale ranging from Pass to Loss. A description of the general characteristics of the risk grades is as follows: • Pass – This grade represents loans ranging from acceptable to very little or no credit risk. These loans typically meet most if not all policy standards in regard to: loan amount as a percentage of collateral value, debt service coverage, profitability, leverage, and working capital. • Special Mention – This grade represents “Other Assets Especially Mentioned” in accordance with regulatory guidelines and includes loans that display some potential weaknesses which, if left unaddressed, may result in deterioration of the repayment prospects for the asset or may inadequately protect the Company’s position in the future. These loans warrant more than normal supervision and attention. • Substandard – This grade represents “Substandard” loans in accordance with regulatory guidelines. Loans within this rating typically exhibit weaknesses that are well defined to the point that repayment is jeopardized. Loss potential is, however, not necessarily evident. The underlying collateral supporting the credit appears to have sufficient value to protect the Company from loss of principal and accrued interest, or the loan has been written down to the point where this is true. There is a definite need for a well-defined workout/rehabilitation program. • Doubtful – This grade represents “Doubtful” loans in accordance with regulatory guidelines. An asset classified as Doubtful has all the weaknesses inherent in a loan classified 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. Pending factors include proposed merger, acquisition, or liquidation procedures, capital injection, perfecting liens on additional collateral, and financing plans. • Loss – This grade represents “Loss” loans in accordance with regulatory guidelines. A loan classified as Loss is considered uncollectible and of such little value that its continuance as a bankable asset is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off the loan, even though some recovery may be affected in the future. The portion of the loan that is graded loss should be charged off no later than the end of the quarter in which the loss is identified. Based on the most recent analysis performed, the risk category of loans by class of loans is as follows for the period indicated: Term Loans Amortized Cost Basis by Origination Year – As of March 31, 2023 (in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total Commercial real estate: CRE non-owner occupied risk ratings Pass $ 29,991 $ 412,225 $ 293,358 $ 152,186 $ 225,912 $ 868,576 $ 120,771 $ — $ 2,103,019 Special Mention — — 7,430 — 19,905 25,555 1,556 — 54,446 Substandard — — 827 743 218 1,806 — — 3,594 Doubtful/Loss — — — — — — — — — Total $ 29,991 $ 412,225 $ 301,615 $ 152,929 $ 246,035 $ 895,937 $ 122,327 $ — $ 2,161,059 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate: CRE owner occupied risk ratings Pass $ 17,630 $ 201,342 $ 194,894 $ 121,856 $ 63,323 $ 291,219 $ 33,526 $ — $ 923,790 Special Mention — 131 16,818 232 724 7,794 838 — 26,537 Substandard — 3,153 — 5,217 1,877 10,479 157 — 20,883 Doubtful/Loss — — — — — — — — — Total $ 17,630 $ 204,626 $ 211,712 $ 127,305 $ 65,924 $ 309,492 $ 34,521 $ — $ 971,210 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Term Loans Amortized Cost Basis by Origination Year – As of March 31, 2023 (in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total Commercial real estate: Multifamily risk ratings Pass $ 2,849 $ 178,177 $ 289,301 $ 95,352 $ 108,051 $ 239,322 $ 33,524 $ — $ 946,576 Special Mention — — — — — — — — — Substandard — — — — — 117 — — 117 Doubtful/Loss — — — — — — — — — Total $ 2,849 $ 178,177 $ 289,301 $ 95,352 $ 108,051 $ 239,439 $ 33,524 $ — $ 946,693 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate: Farmland risk ratings Pass $ 14,429 $ 46,353 $ 53,146 $ 16,430 $ 18,037 $ 46,924 $ 52,382 $ — $ 247,701 Special Mention — 3,140 — 304 5,000 3,386 — — 11,830 Substandard — — 775 371 — 10,837 3,483 — 15,466 Doubtful/Loss — — — — — — — — — Total $ 14,429 $ 49,493 $ 53,921 $ 17,105 $ 23,037 $ 61,147 $ 55,865 $ — $ 274,997 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer loans: SFR 1-4 1st DT liens risk ratings Pass $ 15,719 $ 193,110 $ 271,654 $ 127,830 $ 32,755 $ 141,016 $ 8 $ 3,506 $ 785,598 Special Mention — 1,079 — 3,234 280 8,662 — 67 13,322 Substandard — — 1,189 — — 2,667 — 631 4,487 Doubtful/Loss — — — — — — — — — Total $ 15,719 $ 194,189 $ 272,843 $ 131,064 $ 33,035 $ 152,345 $ 8 $ 4,204 $ 803,407 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer loans: SFR HELOCs and Junior Liens Pass $ 360 $ — $ — $ — $ — $ 119 $ 362,806 $ 7,858 $ 371,143 Special Mention — — — — — — 646 23 669 Substandard — — — — — — 3,159 620 3,779 Doubtful/Loss — — — — — — — — — Total $ 360 $ — $ — $ — $ — $ 119 $ 366,611 $ 8,501 $ 375,591 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ 43 $ 43 Consumer loans: Other risk ratings Pass $ 4,305 $ 11,888 $ 12,044 $ 9,376 $ 9,680 $ 6,274 $ 588 $ — $ 54,155 Special Mention — — 13 64 130 200 16 — 423 Substandard — — — 42 70 87 22 — 221 Doubtful/Loss — — — — — — — — — Total $ 4,305 $ 11,888 $ 12,057 $ 9,482 $ 9,880 $ 6,561 $ 626 $ — $ 54,799 Current period gross write-offs $ 96 $ 6 $ — $ — $ 29 $ 7 $ 3 $ — $ 141 Term Loans Amortized Cost Basis by Origination Year – As of March 31, 2023 (in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total Commercial and industrial loans: Commercial and industrial risk ratings Pass $ 34,754 $ 107,807 $ 64,490 $ 15,801 $ 20,277 $ 11,093 $ 273,269 $ 402 $ 527,893 Special Mention 44 2,750 60 20 29 1,037 9,453 — 13,393 Substandard — 1,223 1,869 3,235 11 298 5,076 100 11,812 Doubtful/Loss — — — — — — — — — Total $ 34,798 $ 111,780 $ 66,419 $ 19,056 $ 20,317 $ 12,428 $ 287,798 $ 502 $ 553,098 Current period gross write-offs $ 6 $ — $ — $ 1,550 $ — $ — $ — $ 18 $ 1,574 Construction loans: Construction risk ratings Pass $ 10,823 $ 93,294 $ 67,911 $ 41,776 $ 4,904 $ 6,736 $ — $ — $ 225,444 Special Mention — — — — — — — — — Substandard — — — — 458 94 — — 552 Doubtful/Loss — — — — — — — — — Total $ 10,823 $ 93,294 $ 67,911 $ 41,776 $ 5,362 $ 6,830 $ — $ — $ 225,996 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Agriculture production loans: Agriculture production risk ratings Pass $ 50 $ 3,140 $ 2,567 $ 1,003 $ 929 $ 9,755 $ 21,690 $ — $ 39,134 Special Mention — — — — — 103 4,769 — 4,872 Substandard — — — — — — 3,056 — 3,056 Doubtful/Loss — — — — — — — — — Total $ 50 $ 3,140 $ 2,567 $ 1,003 $ 929 $ 9,858 $ 29,515 $ — $ 47,062 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Leases: Lease risk ratings Pass $ 8,509 $ — $ — $ — $ — $ — $ — $ — $8,509 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful/Loss — — — — — — — — — Total $ 8,509 $ — $ — $ — $ — $ — $ — $ — $ 8,509 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Total loans outstanding: Risk ratings Pass $ 139,419 $ 1,247,336 $ 1,249,365 $ 581,610 $ 483,868 $ 1,621,034 $ 898,564 $ 11,766 $ 6,232,962 Special Mention 44 7,100 24,321 3,854 26,068 46,737 17,278 90 125,492 Substandard — 4,376 4,660 9,608 2,634 26,385 14,953 1,351 63,967 Doubtful/Loss — — — — — — — — — Total $ 139,463 $ 1,258,812 $ 1,278,346 $ 595,072 $ 512,570 $ 1,694,156 $ 930,795 $ 13,207 $ 6,422,421 Current period gross write-offs $ 102 $ 6 $ — $ 1,550 $ 29 $ 7 $ 3 $ 61 $ 1,758 Term Loans Amortized Cost Basis by Origination Year – As of December 31, 2022 (in thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total Commercial real estate: CRE non-owner occupied risk ratings Pass $ 399,910 $ 304,636 $ 152,960 $ 221,659 $ 147,842 $ 748,994 $ 123,794 $ — $ 2,099,795 Special Mention — — — 20,033 — 21,681 1,346 — 43,060 Substandard — 864 768 — 1,059 4,179 — — 6,870 Doubtful/Loss — — — — — — — — — Total $ 399,910 $ 305,500 $ 153,728 $ 241,692 $ 148,901 $ 774,854 $ 125,140 $ — $ 2,149,725 Commercial real estate: CRE owner occupied risk ratings Pass $ 210,101 $ 197,787 $ 120,929 $ 64,244 $ 49,755 $ 251,137 $ 43,343 $ — $ 937,296 Special Mention 131 16,296 234 731 — 6,971 879 — 25,242 Substandard 3,213 — 5,249 1,893 1,103 10,654 157 — 22,269 Doubtful/Loss — — — — — — — — — Total $ 213,445 $ 214,083 $ 126,412 $ 66,868 $ 50,858 $ 268,762 $ 44,379 $ — $ 984,807 Commercial real estate: Multifamily risk ratings Pass $ 159,318 $ 290,170 $ 96,937 $ 108,586 $ 106,287 $ 154,125 $ 28,989 $ — $ 944,412 Special Mention — — — — — — — — — Substandard — — — — — 125 — — 125 Doubtful/Loss — — — — — — — — — Total $ 159,318 $ 290,170 $ 96,937 $ 108,586 $ 106,287 $ 154,250 $ 28,989 $ — $ 944,537 Commercial real estate: Farmland risk ratings Pass $ 47,067 $ 53,275 $ 16,739 $ 18,589 $ 12,386 $ 34,528 $ 53,684 $ — $ 236,268 Special Mention 3,139 783 246 5,000 — 3,991 14,275 — 27,434 Substandard — — 1,772 765 3,158 7,094 3,523 — 16,312 Doubtful/Loss — — — — — — — — — Total $ 50,206 $ 54,058 $ 18,757 $ 24,354 $ 15,544 $ 45,613 $ 71,482 $ — $ 280,014 Consumer loans: SFR 1-4 1st DT liens risk ratings Pass $ 194,933 $ 265,370 $ 131,922 $ 33,395 $ 28,545 $ 115,469 $ 8 $ 2,924 $ 772,566 Special Mention — — 1,531 282 3,277 5,854 — 465 11,409 Substandard — 1,204 — — 1,004 3,521 — 645 6,374 Doubtful/Loss — — — — — — — — — Total $ 194,933 $ 266,574 $ 133,453 $ 33,677 $ 32,826 $ 124,844 $ 8 $ 4,034 $ 790,349 Term Loans Amortized Cost Basis by Origination Year – As of December 31, 2022 (in thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total Consumer loans: SFR HELOCs and Junior Liens Pass $ 505 $ — $ — $ — $ — $ 127 $ 378,939 $ 8,462 $ 388,033 Special Mention — — — — — — 1,842 81 1,923 Substandard — — — — — — 3,072 638 3,710 Doubtful/Loss — — — — — — — — — Total $ 505 $ — $ — $ — $ — $ 127 $ 383,853 $ 9,181 $ 393,666 Consumer loans: Other risk ratings Pass $ 14,070 $ 12,990 $ 10,211 $ 10,650 $ 5,225 $ 1,945 $ 899 $ — $ 55,990 Special Mention — 18 77 135 176 32 47 — 485 Substandard — — 42 92 — 96 23 — 253 Doubtful/Loss — — — — — — — — — Total $ 14,070 $ 13,008 $ 10,330 $ 10,877 $ 5,401 $ 2,073 $ 969 $ — $ 56,728 Commercial and industrial loans: Commercial and industrial risk ratings Pass $ 125,710 $ 64,966 $ 17,746 $ 23,131 $ 7,628 $ 5,051 $ 297,341 $ 483 $ 542,056 Special Mention 3,032 139 21 49 138 768 11,547 — 15,694 Substandard 1,293 1,142 5,179 14 33 611 3,798 101 12,171 Doubtful/Loss — — — — — — — — — Total $ 130,035 $ 66,247 $ 22,946 $ 23,194 $ 7,799 $ 6,430 $ 312,686 $ 584 $ 569,921 Construction loans: Construction risk ratings Pass $ 72,840 $ 72,308 $ 43,409 $ 15,358 $ 2,159 $ 4,900 $ — $ — $ 210,974 Special Mention — — — — — — — — — Substandard — — — 457 — 129 — — 586 Doubtful/Loss — — — — — — — — — Total $ 72,840 $ 72,308 $ 43,409 $ 15,815 $ 2,159 $ 5,029 $ — $ — $ 211,560 Agriculture production loans: Agriculture production risk ratings Pass $ 3,414 $ 2,777 $ 1,149 $ 1,104 $ 8,902 $ 1,058 $ 38,425 $ — $ 56,829 Special Mention — — — — 90 31 1,632 — 1,753 Substandard — — — — — — 2,832 — 2,832 Doubtful/Loss — — — — — — — — — Total $ 3,414 $ 2,777 $ 1,149 $ 1,104 $ 8,992 $ 1,089 $ 42,889 $ — $ 61,414 Term Loans Amortized Cost Basis by Origination Year – As of December 31, 2022 (in thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total Leases: Lease risk ratings Pass $ 7,726 $ — $ — $ — $ — $ — $ — $ — $ 7,726 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful/Loss — — — — — — — — — Total $ 7,726 $ — $ — $ — $ — $ — $ — $ — $ 7,726 Total loans outstanding: Risk ratings Pass $ 1,235,594 $ 1,264,279 $ 592,002 $ 496,716 $ 368,729 $ 1,317,334 $ 965,422 $ 11,869 $ 6,251,945 Special Mention 6,302 17,236 2,109 26,230 3,681 39,328 31,568 546 127,000 Substandard 4,506 3,210 13,010 3,221 6,357 26,409 13,405 1,384 71,502 Doubtful/Loss — — — — — — — — — Total $ 1,246,402 $ 1,284,725 $ 607,121 $ 526,167 $ 378,767 $ 1,383,071 $ 1,010,395 $ 13,799 $ 6,450,447 The following table shows the ending balance of current and past due originated loans by loan category as of the date indicated: Analysis of Past Due Loans - As of March 31, 2023 (in thousands) 30-59 days 60-89 days > 90 days Total Past Current Total Commercial real estate: CRE non-owner occupied $ 623 $ — $ — $ 623 $ 2,160,436 $ 2,161,059 CRE owner occupied 156 82 172 410 970,800 971,210 Multifamily — — — — 946,693 946,693 Farmland 150 — — 150 274,847 274,997 Total commercial real estate loans 929 82 172 1,183 4,352,776 4,353,959 Consumer: SFR 1-4 1st DT liens 442 557 356 1,355 802,052 803,407 SFR HELOCs and junior liens — 1,342 793 2,135 373,456 375,591 Other 49 136 121 306 54,493 54,799 Total consumer loans 491 2,035 1,270 3,796 1,230,001 1,233,797 Commercial and industrial 471 1,620 364 2,455 550,643 553,098 Construction — 78 379 457 225,539 225,996 Agriculture production — — — — 47,062 47,062 Leases — — — — 8,509 8,509 Total $ 1,891 $ 3,815 $ 2,185 $ 7,891 $ 6,414,530 $ 6,422,421 Analysis of Past Due Loans - As of December 31, 2022 (in thousands) 30-59 days 60-89 days > 90 days Total Past Current Total Commercial real estate: CRE non-owner occupied $ — $ — $ — $ — $ 2,149,725 $ 2,149,725 CRE owner occupied — 98 75 173 984,634 984,807 Multifamily 159 — — 159 944,378 944,537 Farmland — — — — 280,014 280,014 Total commercial real estate loans 159 98 75 332 4,358,751 4,359,083 Consumer: SFR 1-4 1st DT liens 24 — 279 303 790,046 790,349 SFR HELOCs and junior liens 172 166 707 1,045 392,621 393,666 Other 26 34 55 115 56,613 56,728 Total consumer loans 222 200 1,041 1,463 1,239,280 1,240,743 Commercial and industrial 2,300 190 283 2,773 567,148 569,921 Construction — — 379 379 211,181 211,560 Agriculture production — — — — 61,414 61,414 Leases — — — — 7,726 7,726 Total $ 2,681 $ 488 $ 1,778 $ 4,947 $ 6,445,500 $ 6,450,447 The following table shows the ending balance of non accrual loans by loan category as of the date indicated: Non Accrual Loans As of March 31, 2023 As of December 31, 2022 (in thousands) Non accrual with no allowance for credit losses Total non accrual Past due 90 days or more and still accruing Non accrual with no allowance for credit losses Total non accrual Past due 90 days or more and still accruing Commercial real estate: CRE non-owner occupied $ 1,671 $ 1,671 $ — $ 1,739 $ 1,739 $ — CRE owner occupied 3,848 3,848 — 4,938 4,938 — Multifamily 117 117 — 125 125 — Farmland 371 371 — 1,772 1,772 — Total commercial real estate loans 6,007 6,007 — 8,574 8,574 — Consumer: SFR 1-4 1st DT liens 3,532 3,532 — 4,117 4,220 — SFR HELOCs and junior liens 2,790 3,373 — 2,498 3,155 — Other 78 139 — 47 84 — Total consumer loans 6,400 7,044 — 6,662 7,459 — Commercial and industrial 95 1,372 189 1,224 3,518 — Construction 457 457 — 491 491 — Agriculture production 957 957 — 1,279 1,279 — Leases — — — — — — Sub-total 13,916 15,837 189 18,230 21,321 — Less: Guaranteed loans (75) (230) — (105) (225) Total, net $ 13,841 $ 15,607 $ 189 $ 18,125 $ 21,096 $ — Interest income on non accrual loans that would have been recognized during the three months ended March 31, 2023 and 2022, if all such loans had been current in accordance with their original terms, totaled $0.32 million and $0.17 million, respectively. Interest income actually recognized on these originated loans during the three months ended March 31, 2023 and 2022 was $17 thousand and $13 thousand, respectively. The following tables present the amortized cost basis of collateral dependent loans by class of loans as of the following periods: As of March 31, 2023 (in thousands) Retail Office Warehouse Other Multifamily Farmland SFR-1st Deed SFR-2nd Deed Automobile/Truck A/R and Inventory Equipment Total Commercial real estate: CRE non-owner occupied $ 749 $ 95 $ — $ 827 $ — $ — $ — $ — $ — $ — $ — $ 1,671 CRE owner occupied 523 75 — 3,250 — — — — — — — 3,848 Multifamily — — — — 117 — — — — — — 117 Farmland — — — — — 371 — — — — — 371 Total commercial real estate loans 1,272 170 — 4,077 117 371 — — — — — 6,007 Consumer: SFR 1-4 1st DT liens — — — — — — 3,532 — — — — 3,532 SFR HELOCs and junior liens — — — — — — 1,705 1,308 — — — 3,013 Other — — — 4 — — — — 124 — 2 130 Total consumer loans — — — 4 — — 5,237 1,308 124 — 2 6,675 Commercial and industrial — — — — — — — — — 1,298 74 1,372 Construction — — — 379 — — 78 — — — — 457 Agriculture production — — — — — — — — — — 957 957 Leases — — — — — — — — — — — — Total $ 1,272 $ 170 $ — $ 4,460 $ 117 $ 371 $ 5,315 $ 1,308 $ 124 $ 1,298 $ 1,033 $ 15,468 As of December 31, 2022 (in thousands) Retail Office Warehouse Other Multifamily Farmland SFR -1st Deed SFR -2nd Deed Automobile/Truck A/R and Inventory Equipment Total Commercial real estate: CRE non-owner occupied $ 777 $ 98 $ — $ 864 $ — $ — $ — $ — $ — $ — $ — $ 1,739 CRE owner occupied 548 75 1,103 3,212 — — — — — — — 4,938 Multifamily — — — — 125 — — — — — — 125 Farmland — — — — — 1,772 — — — — — 1,772 Total commercial real estate loans 1,325 173 1,103 4,076 125 1,772 — — — — — 8,574 Consumer: SFR 1-4 1st DT liens — — — — — — 4,220 — — — — 4,220 SFR HELOCs and junior liens — — — — — — 1,664 1,121 — — — 2,785 Other — — — 5 — — — — 61 — 2 68 Total consumer loans — — — 5 — — 5,884 1,121 61 — 2 7,073 Commercial and industrial — — — 1,874 — — — — — 1,596 48 3,518 Construction — — — 379 — — 112 — — — — 491 Agriculture production — — — — — — — — — — 1,279 1,279 Leases — — — — — — — — — — — — Total $ 1,325 $ 173 $ 1,103 $ 6,334 $ 125 $ 1,772 $ 5,996 $ 1,121 $ 61 $ 1,596 $ 1,329 $ 20,935 Modifications to borrowers experiencing financial difficulty may include interest rate reductions, principal or interest forgiveness, forbearances, term extensions, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. The following tables show the amortized cost basis of loans that were both experiencing financial difficulty and modified during the periods presented. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivables is also presented below. For the three months ended March 31, 2023 (in thousands) Payment Delay/Term Extension Total % of Loans Outstanding Commercial real estate: CRE non-owner occupied $ — — % CRE owner occupied — — Multifamily — — Farmland — — Total commercial real estate loans — — Consumer: SFR 1-4 1st DT liens — — SFR HELOCs and junior liens — — Other — — Total consumer loans — — Commercial and industrial 177 0.03 Construction — — Agriculture production — — Leases — — Total $ 177 0.03 % The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the quarter ended March 31, 2023. Weighted Average Months Term Extension Commercial and industrial 12 There were no loans with payment defaults by borrowers experiencing financial difficulty during the quarter ended March 31, 2023 which had material modifications in rate, term or principal forgiveness during the twelve months prior to default. |
