| 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, 2024 (in thousands) Beginning Charge-offs Recoveries Provision (benefit) Ending Commercial real estate: CRE non-owner occupied $ 35,077 $ — $ — $ 1,610 $ 36,687 CRE owner occupied 15,081 — — 1,030 16,111 Multifamily 14,418 — — 1,264 15,682 Farmland 4,288 — — (593) 3,695 Total commercial real estate loans 68,864 — — 3,311 72,175 Consumer: SFR 1-4 1st DT liens 14,009 (26) — 157 14,140 SFR HELOCs and junior liens 10,273 (32) 49 (348) 9,942 Other 3,171 (250) 40 398 3,359 Total consumer loans 27,453 (308) 89 207 27,441 Commercial and industrial 12,750 (130) 22 (775) 11,867 Construction 8,856 — — 306 9,162 Agriculture production 3,589 (837) 21 935 3,708 Leases 10 — — 31 41 Allowance for credit losses on loans 121,522 (1,275) 132 4,015 124,394 Reserve for unfunded commitments 5,850 — — 290 6,140 Total $ 127,372 $ (1,275) $ 132 $ 4,305 $ 130,534 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 includes improving shifts in the magnitude of changes for both the unemployment and GDP factors leading up to the balance sheet date. Despite continued declines on a year over year comparative basis, core inflation remains elevated from wage pressures, and higher living costs such as housing, energy and food prices. Management notes the rapid intervals of rate increases by the Federal Reserve may create repricing risk for certain borrowers and continued inversion of the yield curve, creates informed expectations of the US potentially entering a recession within 12 months. While projected cuts in interest rates from the Federal Reserve during 2024 may improve this outlook, the uncertainty associated with the extent and timing of these potential reductions has inhibited a change to forecasted reserve levels. As a result, management continues to believe that certain credit weaknesses are likely present in the overall economy and that it is appropriate to maintain a reserve level that incorporates such risk factors. 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, 2023 (in thousands) Beginning Charge-offs Recoveries Provision Ending Balance Commercial real estate: CRE non-owner occupied $ 30,962 $ — $ — $ 4,115 $ 35,077 CRE owner occupied 14,014 (3,637) 2 4,702 15,081 Multifamily 13,132 — — 1,286 14,418 Farmland 3,273 — — 1,015 4,288 Total commercial real estate loans 61,381 (3,637) 2 11,118 68,864 Consumer: SFR 1-4 1st DT liens 11,268 — 262 2,479 14,009 SFR HELOCs and junior liens 11,413 (66) 723 (1,797) 10,273 Other 1,958 (558) 190 1,581 3,171 Total consumer loans 24,639 (624) 1,175 2,263 27,453 Commercial and industrial 13,597 (3,879) 316 2,716 12,750 Construction 5,142 — — 3,714 8,856 Agriculture production 906 — 34 2,649 3,589 Leases 15 — — (5) 10 Allowance for credit losses on loans 105,680 (8,140) 1,527 22,455 121,522 Reserve for unfunded commitments 4,315 — — 1,535 5,850 Total $ 109,995 $ (8,140) $ 1,527 $ 23,990 $ 127,372 Allowance for credit losses – Three months ended March 31, 2023 (in thousands) Beginning Charge-offs Recoveries Provision Ending Balance 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 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, 2024 (in thousands) 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total Commercial real estate: CRE non-owner occupied risk ratings Pass $ 11,059 $ 184,318 $ 418,964 $ 282,676 $ 142,738 $ 983,609 $ 147,552 $ — $ 2,170,916 Special Mention — — 1,295 — — 34,021 2,252 — 37,568 Substandard — — — 767 — 11,317 — — 12,084 Doubtful/Loss — — — — — — — — — Total $ 11,059 $ 184,318 $ 420,259 $ 283,443 $ 142,738 $ 1,028,947 $ 149,804 $ — $ 2,220,568 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate: CRE owner occupied risk ratings Pass $ 33,662 $ 75,002 $ 201,423 $ 185,995 $ 114,912 $ 313,351 $ 23,631 $ — $ 947,976 Special Mention — — 5,724 2,318 2,935 4,372 — — 15,349 Substandard — — 2,912 7,706 — 1,025 — — 11,643 Doubtful/Loss — — — — — — — — — Total $ 33,662 $ 75,002 $ 210,059 $ 196,019 $ 117,847 $ 318,748 $ 23,631 $ — $ 974,968 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Term Loans Amortized Cost Basis by Origination Year – As of March 31, 2024 (in thousands) 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total Commercial real estate: Multifamily risk ratings Pass $ 4,063 $ 28,655 $ 176,410 $ 278,671 $ 120,526 $ 323,784 $ 37,749 $ — $ 969,858 Special Mention — — — 11,917 — 515 — — $ 12,432 Substandard — — — — — — — — — Doubtful/Loss — — — — — — — — — Total $ 4,063 $ 28,655 $ 176,410 $ 290,588 $ 120,526 $ 324,299 $ 37,749 $ — $ 982,290 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate: Farmland risk ratings Pass $ 1,396 $ 21,093 $ 45,682 $ 36,854 $ 15,571 $ 55,897 $ 46,551 $ — $ 223,044 Special Mention — — 2,984 5,803 427 4,674 1,155 — 15,043 Substandard — 101 — 8,913 — 11,904 6,937 — 27,855 Doubtful/Loss — — — — — — — — — Total $ 1,396 $ 21,194 $ 48,666 $ 51,570 $ 15,998 $ 72,475 $ 54,643 $ — $ 265,942 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer loans: SFR 1-4 1st DT liens risk ratings Pass $ 21,136 $ 127,324 $ 187,809 $ 257,773 $ 121,334 $ 152,951 $ — $ 3,847 $ 872,174 Special Mention — 70 — — — 2,068 — 27 2,165 Substandard — 268 144 1,280 1,479 5,571 — 439 9,181 Doubtful/Loss — — — — — — — — — Total $ 21,136 $ 127,662 $ 187,953 $ 259,053 $ 122,813 $ 160,590 $ — $ 4,313 $ 883,520 Current period gross write-offs $ — $ 26 $ — $ — $ — $ — $ — $ — $ 26 Consumer loans: SFR HELOCs and Junior Liens Pass $ 278 $ — $ — $ — $ — $ 89 $ 330,942 $ 6,527 $ 337,836 Special Mention — — — — — — 3,416 204 3,620 Substandard — — — — — — 3,260 507 3,767 Doubtful/Loss — Total $ 278 $ — $ — $ — $ — $ 89 $ 337,618 $ 7,238 $ 345,223 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ 32 $ — $ 32 Consumer loans: Other risk ratings Pass $ 9,305 $ 30,615 $ 8,361 $ 7,941 $ 6,856 $ 10,413 $ 618 $ — $ 74,109 Special Mention — — 52 131 60 72 20 — 335 Substandard — 85 177 157 3 146 2 — 570 Doubtful/Loss — — — — — — — — — Total $ 9,305 $ 30,700 $ 8,590 $ 8,229 $ 6,919 $ 10,631 $ 640 $ — $ 75,014 Current period gross write-offs $ 76 $ 67 $ — $ 60 $ 28 $ 15 $ 4 $ — $ 250 Term Loans Amortized Cost Basis by Origination Year – As of March 31, 2024 (in thousands) 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total Commercial and industrial loans: Commercial and industrial risk ratings Pass $ 17,591 $ 62,336 $ 70,850 $ 46,756 $ 7,801 $ 15,418 $ 316,769 $ 246 $ 537,767 Special Mention — — 743 156 86 — 2,046 — 3,031 Substandard — — 2,082 768 83 721 5,255 73 8,982 Doubtful/Loss — — — — — — — — — Total $ 17,591 $ 62,336 $ 73,675 $ 47,680 $ 7,970 $ 16,139 $ 324,070 $ 319 $ 549,780 Current period gross write-offs $ 10 $ — $ — $ — $ — $ — $ 120 $ — $ 130 Construction loans: Construction risk ratings Pass $ 1,979 $ 71,893 $ 141,212 $ 89,345 $ 22,345 $ 10,574 $ — $ — $ 337,348 Special Mention — — 11,569 — — — — — 11,569 Substandard — — — — — 64 — — 64 Doubtful/Loss — — — — — — — — — Total $ 1,979 $ 71,893 $ 152,781 $ 89,345 $ 22,345 $ 10,638 $ — $ — $ 348,981 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Agriculture production loans: Agriculture production risk ratings Pass $ 586 $ 1,378 $ 2,857 $ 1,539 $ 349 $ 8,897 $ 120,410 $ — $ 136,016 Special Mention — 33 — — — — 6,928 — 6,961 Substandard — — 164 490 152 — 1,376 — 2,182 Doubtful/Loss — — — — — — — — — Total $ 586 $ 1,411 $ 3,021 $ 2,029 $ 501 $ 8,897 $ 128,714 $ — $ 145,159 Current period gross write-offs $ — $ — $ 173 $ — $ — $ — $ 664 $ — $ 837 Leases: Lease risk ratings Pass $ 9,250 $ — $ — $ — $ — $ — $ — $ — $9,250 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful/Loss — — — — — — — — — Total $ 9,250 $ — $ — $ — $ — $ — $ — $ — $ 9,250 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Total loans outstanding: Risk ratings Pass $ 110,305 $ 602,614 $ 1,253,568 $ 1,187,550 $ 552,432 $ 1,874,983 $ 1,024,222 $ 10,620 $ 6,616,294 Special Mention — 103 22,367 20,325 3,508 45,722 15,817 231 108,073 Substandard — 454 5,479 20,081 1,717 30,748 16,830 1,019 76,328 Doubtful/Loss — — — — — — — — — Total $ 110,305 $ 603,171 $ 1,281,414 $ 1,227,956 $ 557,657 $ 1,951,453 $ 1,056,869 $ 11,870 $ 6,800,695 Current period gross write-offs $ 86 $ 93 $ 173 $ 60 $ 28 $ 15 $ 820 $ — $ 1,275 Term Loans Amortized Cost Basis by Origination Year – As of December 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 $ 180,326 $ 413,863 $ 290,210 $ 137,656 $ 206,408 $ 792,875 $ 141,686 $ — $ 2,163,024 Special Mention — 1,329 — 5,281 17,093 14,174 1,247 — 39,124 Substandard — — 767 — 2,139 12,540 212 — 15,658 Doubtful/Loss — — — — — — — — — Total $ 180,326 $ 415,192 $ 290,977 $ 142,937 $ 225,640 $ 819,589 $ 143,145 $ — $ 2,217,806 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate: CRE owner occupied risk ratings Pass $ 71,288 $ 196,915 $ 190,384 $ 118,457 $ 59,220 $ 268,990 $ 23,740 $ — $ 928,994 Special Mention — 5,773 1,513 2,754 703 2,678 — — 13,421 Substandard — 2,972 7,835 — 111 3,107 — — 14,025 Doubtful/Loss — — — — — — — — — Total $ 71,288 $ 205,660 $ 199,732 $ 121,211 $ 60,034 $ 274,775 $ 23,740 $ — $ 956,440 Current period gross write-offs $ — $ — $ — $ 1,380 $ — $ 2,228 $ 29 $ — $ 3,637 Commercial real estate: Multifamily risk ratings Pass $ 28,445 $ 177,032 $ 279,660 $ 89,106 $ 104,108 $ 225,446 $ 33,470 $ — $ 937,267 Special Mention — — 11,914 — — 321 — — 12,235 Substandard — — — — — — — — — Doubtful/Loss — — — — — — — — — Total $ 28,445 $ 177,032 $ 291,574 $ 89,106 $ 104,108 $ 225,767 $ 33,470 $ — $ 949,502 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate: Farmland risk ratings Pass $ 21,729 $ 46,398 $ 37,134 $ 16,006 $ 16,780 $ 41,663 $ 50,857 $ — $ 230,567 Special Mention — 2,170 5,802 51 261 734 — — 9,018 Substandard 101 813 9,053 377 — 13,266 7,859 — 31,469 Doubtful/Loss — — — — — — — — — Total $ 21,830 $ 49,381 $ 51,989 $ 16,434 $ 17,041 $ 55,663 $ 58,716 $ — $ 271,054 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer loans: SFR 1-4 1st DT liens risk ratings Pass $ 135,741 $ 189,920 $ 260,870 $ 125,081 $ 29,568 $ 126,975 $ — $ 4,079 $ 872,234 Special Mention 71 — — — — 1,948 — 27 2,046 Substandard — 140 1,296 1,490 531 5,265 — 436 9,158 Doubtful/Loss — — — — — — — — — Total $ 135,812 $ 190,060 $ 262,166 $ 126,571 $ 30,099 $ 134,188 $ — $ 4,542 $ 883,438 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Term Loans Amortized Cost Basis by Origination Year – As of December 31, 2023 (in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total Consumer loans: SFR HELOCs and Junior Liens Pass $ 297 $ — $ — $ — $ — $ 96 $ 343,698 $ 6,444 $ 350,535 Special Mention — — — — — — 2,274 138 2,412 Substandard — — — — — — 3,212 654 3,866 Doubtful/Loss — — — — — — — — — Total $ 297 $ — $ — $ — $ — $ 96 $ 349,184 $ 7,236 $ 356,813 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ 66 $ 66 Consumer loans: Other risk ratings Pass $ 34,441 $ 9,061 $ 8,908 $ 7,419 $ 6,825 $ 4,619 $ 659 $ — $ 71,932 Special Mention 21 54 203 63 54 37 18 — 450 Substandard 87 183 164 30 116 52 3 — 635 Doubtful/Loss — — — — — — — — — Total $ 34,549 $ 9,298 $ 9,275 $ 7,512 $ 6,995 $ 4,708 $ 680 $ — $ 73,017 Current period gross write-offs $ 376 $ 82 $ — $ 36 $ 39 $ 9 $ 16 $ — $ 558 Commercial and industrial loans: Commercial and industrial risk ratings Pass $ 70,930 $ 83,184 $ 51,455 $ 9,504 $ 10,193 $ 7,636 $ 340,858 $ 318 $ 574,078 Special Mention 33 663 237 83 — 178 1,126 — 2,320 Substandard — 2,014 782 103 4 762 6,318 74 10,057 Doubtful/Loss — — — — — — — — — Total $ 70,963 $ 85,861 $ 52,474 $ 9,690 $ 10,197 $ 8,576 $ 348,302 $ 392 $ 586,455 Current period gross write-offs $ 153 $ 287 $ 240 $ 2,285 $ — $ — $ 896 $ 18 $ 3,879 Construction loans: Construction risk ratings Pass $ 56,378 $ 136,294 $ 85,144 $ 47,632 $ 4,583 $ 6,518 $ — $ — $ 336,549 Special Mention — 10,582 — — — — — — 10,582 Substandard — — — — 67 — — — 67 Doubtful/Loss — — — — — — — — — Total $ 56,378 $ 146,876 $ 85,144 $ 47,632 $ 4,650 $ 6,518 $ — $ — $ 347,198 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Agriculture production loans: Agriculture production risk ratings Pass $ 945 $ 2,749 $ 1,595 $ 396 $ 620 $ 8,491 $ 114,935 $ — $ 129,731 Special Mention — 183 543 176 — — 11,302 — 12,204 Substandard — — — — — — 2,562 — 2,562 Doubtful/Loss — — — — — — — — — Total $ 945 $ 2,932 $ 2,138 $ 572 $ 620 $ 8,491 $ 128,799 $ — $ 144,497 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Term Loans Amortized Cost Basis by Origination Year – As of December 31, 2023 (in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total Leases: Lease risk ratings Pass $ 8,250 $ — $ — $ — $ — $ — $ — $ — $ 8,250 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful/Loss — — — — — — — — — Total $ 8,250 $ — $ — $ — $ — $ — $ — $ — $ 8,250 Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Total loans outstanding: Risk ratings Pass $ 608,770 $ 1,255,416 $ 1,205,360 $ 551,257 $ 438,305 $ 1,483,309 $ 1,049,903 $ 10,841 $ 6,603,161 Special Mention 125 20,754 20,212 8,408 18,111 20,070 15,967 165 103,812 Substandard 188 6,122 19,897 2,000 2,968 34,992 20,166 1,164 87,497 Doubtful/Loss — — — — — — — — — Total $ 609,083 $ 1,282,292 $ 1,245,469 $ 561,665 $ 459,384 $ 1,538,371 $ 1,086,036 $ 12,170 $ 6,794,470 Current period gross write-offs $ 529 $ 369 $ 240 $ 3,701 $ 39 $ 2,237 $ 941 $ 84 $ 8,140 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, 2024 (in thousands) 30-59 days 60-89 days > 90 days Total Past Current Total Commercial real estate: CRE non-owner occupied $ 1,182 $ 232 $ 3,104 $ 4,518 $ 2,216,050 $ 2,220,568 CRE owner occupied 1,803 32 244 2,079 972,889 974,968 Multifamily — — — — 982,290 982,290 Farmland — — 4,608 4,608 261,334 265,942 Total commercial real estate loans 2,985 264 7,956 11,205 4,432,563 4,443,768 Consumer: SFR 1-4 1st DT liens 141 6 534 681 882,839 883,520 SFR HELOCs and junior liens — 282 572 854 344,369 345,223 Other 76 — 84 160 74,854 75,014 Total consumer loans 217 288 1,190 1,695 1,302,062 1,303,757 Commercial and industrial 482 352 1,270 2,104 547,676 549,780 Construction 52 — — 52 348,929 348,981 Agriculture production — — 1,376 1,376 143,783 145,159 Leases — 42 — 42 9,208 9,250 Total $ 3,736 $ 946 $ 11,792 $ 16,474 $ 6,784,221 $ 6,800,695 Analysis of Past Due Loans - As of December 31, 2023 (in thousands) 30-59 days 60-89 days > 90 days Total Past Current Total Commercial real estate: CRE non-owner occupied $ 3,876 $ — $ 1,382 $ 5,258 $ 2,212,548 $ 2,217,806 CRE owner occupied 34 — 247 281 956,159 956,440 Multifamily — — — — 949,502 949,502 Farmland 635 3,798 2,052 6485 264,569 271,054 Total commercial real estate loans 4,545 3,798 3,681 12,024 4,382,778 4,394,802 Consumer: SFR 1-4 1st DT liens 141 1,449 490 2,080 881,358 883,438 SFR HELOCs and junior liens 16 — 623 639 356,174 356,813 Other 148 40 30 218 72,799 73,017 Total consumer loans 305 1,489 1,143 2,937 1,310,331 1,313,268 Commercial and industrial 244 605 1,654 2,503 583,952 586,455 Construction — — — — 347,198 347,198 Agriculture production 593 878 33 1,504 142,993 144,497 Leases 447 — — 447 7,803 8,250 Total $ 6,134 $ 6,770 $ 6,511 $ 19,415 $ 6,775,055 $ 6,794,470 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, 2024 As of December 31, 2023 (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 $ 4,113 $ 4,113 $ — $ 2,024 $ 2,024 $ — CRE owner occupied 3,905 3,905 — 3,994 3,994 — Multifamily — — — — — — Farmland 8,926 13,780 — 5,996 14,484 — Total commercial real estate loans 16,944 21,798 — 12,014 20,502 — Consumer: SFR 1-4 1st DT liens 4,821 5,094 — 2,808 2,811 — SFR HELOCs and junior liens 3,110 3,403 — 3,281 3,571 — Other 64 99 — 39 105 — Total consumer loans 7,995 8,596 — 6,128 6,487 — Commercial and industrial 1,535 2,301 107 1,379 2,503 10 Construction 64 64 — 67 67 — Agriculture production 311 1,376 — — 2,322 — Leases — — — — — — Sub-total 26,849 34,135 107 19,588 31,881 10 Less: Guaranteed loans (801) (872) — (766) (878) Total, net $ 26,048 $ 33,263 $ 107 $ 18,822 $ 31,003 $ 10 Interest income on non accrual loans that would have been recognized during the three months ended March 31, 2024 and 2023, if all such loans had been current in accordance with their original terms, totaled $0.85 million and $0.32 million, respectively. Interest income actually recognized on these originated loans during the three months ended March 31, 2024 and 2023 was $0.1 million and $0.02 million, 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, 2024 (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 $ 2,459 $ 381 $ 506 $ 767 $ — $ — $ — $ — $ — $ — $ — $ 4,113 CRE owner occupied 593 — 293 3,019 — — — — — — — 3,905 Multifamily — — — — — — — — — — — — Farmland — — — — — 13,780 — — — — — 13,780 Total commercial real estate loans 3,052 381 799 3,786 — 13,780 — — — — — 21,798 Consumer: SFR 1-4 1st DT liens — — — — — — 5,089 — — — — 5,089 SFR HELOCs and junior liens — — — — — — 1,403 1,739 — — — 3,142 Other — — — — — — — — 89 — — 89 Total consumer loans — — — — — — 6,492 1,739 89 — — 8,320 Commercial and industrial — — — — — — — — — 1,294 807 2,101 Construction — — — — — — 64 — — — — 64 Agriculture production — — — 1,376 — — — — — — — 1,376 Leases — — — — — — — — — — — — Total $ 3,052 $ 381 $ 799 $ 5,162 $ — $ 13,780 $ 6,556 $ 1,739 $ 89 $ 1,294 $ 807 $ 33,659 As of December 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 $ 124 $ 615 $ 519 $ 766 $ — $ — $ — $ — $ — $ — $ — $ 2,024 CRE owner occupied 614 — 297 3,083 — — — — — — — 3,994 Multifamily — — — — — — — — — — — — Farmland — — — 635 — 13,849 — — — — — 14,484 Total commercial real estate loans 738 615 816 4,484 — 13,849 — — — — — 20,502 Consumer: SFR 1-4 1st DT liens — — — — — — 2,808 — — — — 2,808 SFR HELOCs and junior liens — — — — — — 1,816 1,467 — — — 3,283 Other — — — — — — — — 95 — — 95 Total consumer loans — — — — — — 4,624 1,467 95 — — 6,186 Commercial and industrial — — — — — — — — — 1,712 791 2,503 Construction — — — — — — 67 — — — — 67 Agriculture production — — — 2,288 — — — — — — 33 2,321 Leases — — — — — — — — — — — — Total $ 738 $ 615 $ 816 $ 6,772 $ — $ 13,849 $ 4,691 $ 1,467 $ 95 $ 1,712 $ 824 $ 31,579 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, 2024 March 31, 2023 (in thousands) Combination - Term Extension/Rate Change Payment Delay/Term Extension Total % of Loans Outstanding Payment Delay/Term Extension Total % of Loans Outstanding CRE non-owner occupied $ 211 $ — 0.03 % $ — — % SFR HELOCs and junior liens — 41 0.01 — — Commercial and industrial — 516 0.07 177 0.03 Total $ 211 $ 557 0.11 % $ 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, 2024. Modification Type Loan Type Financial Effect Combination - Term extension / rate change CRE non-owner occupied Added 120 months to the life of the loan; converted from variable to fixed interest rate Payment delay / term extension SFR HELOCs and junior liens Added 60 months to the life of the loan Payment delay / term extension Commercial and industrial Added 66 months to the life of the loan Payment delay / term extension Commercial and industrial Added 12 months to the life of the loan The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the quarter ended March 31, 2023. Modification Type Loan Type Financial Effect Payment delay / term extension Commercial and industrial Added 12 months to the life of the loan to delay balloon repayment During the quarters ended March 31, 2024 and March 31, 2023, respectively, there were no loans with payment defaults by borrowers experiencing financial difficulty which had material modifications in rate, term or principal forgiveness during the twelve months prior to default. |
