Credit Quality | 5. CREDIT QUALITY Management monitors the credit quality of its loans and leases on an ongoing basis. Measurement of delinquency and past due status are based on the contractual terms of each loan. United considers a loan to be past due when it is 30 days or more past its contractual payment due date. For all loan classes, past due loans and leases are reviewed on a monthly basis to identify loans and leases for nonaccrual status. Generally, when collection in full of the principal and interest is jeopardized, the loan is placed on nonaccrual status. The accrual of interest income on commercial and most consumer loans generally is discontinued when a loan becomes 90 to 120 days past due as to principal or interest. However, regardless of delinquency status, if a loan is fully secured and in the process of collection and resolution of collection is expected in the near term (generally less than 90 days), then the loan will not be placed on nonaccrual status. When interest accruals are discontinued, unpaid interest recognized in income in the current year is reversed, and unpaid interest accrued in prior years is charged to the allowance for credit losses. United’s method of income recognition for loans and leases that are classified as nonaccrual is to recognize interest income on a cash basis or apply the cash receipt to principal when the ultimate collectibility of principal is in doubt. Nonaccrual loans and leases will not normally be returned to accrual status unless all past due principal and interest has been paid and the borrower has evidenced their ability to meet the contractual provisions of the note. Generally, a loan is categorized as a TDR if a concession is granted and there is deterioration in the financial condition of the borrower. The portfolio of TDR loans is monitored monthly. A loan is categorized as a troubled debt restructuring (“TDR”) if a concession is granted and there is deterioration in the financial condition of the borrower. A loan classified as a TDR will generally retain such classification until the loan is paid in full. However, a one-to-four-family In response to the coronavirus (“COVID-19”) COVID-19 COVID-19 As of June 30, 2021, United had TDRs of $47,271 as compared to $55,657 as of December 31, 2020. Of the $47,271 aggregate balance of TDRs at June 30, 2021, $32,471 was on nonaccrual, $46 was 90 days or more past due and $1,362 was 30-89 30-89 The following tables sets forth the balances of TDRs at June 30, 2021 and December 31, 2020 and the reasons for modification: Reason for modification June 30, 2021 December 31, 2020 Interest rate reduction $ 10,204 $ 10,774 Interest rate reduction and change in terms 0 2,346 Forgiveness of principal 200 214 Concession of principal and term 20 22 Transfer of asset 4,465 0 Extended maturity 5,546 4,414 Change in terms 26,836 37,887 Total $ 47,271 $ 55,657 The following table sets forth United’s troubled debt restructurings that have been restructured during the three months ended June 30, 2021 and 2020, segregated by class of loans: Troubled Debt Restructurings For the Three Months Ended June 30, 2021 June 30, 2020 Number of Pre- Modification Post- Number of Pre- Modification Post- Commercial real estate: Owner-occupied 0 $ 0 $ 0 18 $ 10,628 $ 10,586 Nonowner-occupied 1 5,413 5,364 6 2,259 2,248 Other commercial 1 181 181 14 3,169 3,090 Residential real estate 0 0 0 19 3,889 3,872 Construction & land development 0 0 0 9 2,562 2,557 Consumer: Bankcard 0 0 0 0 0 0 Other consumer 0 0 0 3 69 36 Total 2 $ 5,594 $ 5,545 69 $ 22,576 $ 22,389 The Troubled Debt Restructurings For the Six Months Ended June 30, 2021 June 30, 2020 Number of Pre- Modification Post- Number of Pre- Modification Post- Commercial real estate: Owner-occupied 1 $ 940 $ 1,106 21 $ 18,579 $ 18,345 Nonowner-occupied 2 6,349 6,292 6 2,259 2,248 Other commercial 1 181 181 18 3,667 3,322 Residential real estate 0 0 0 19 3,889 3,872 Construction & land development 0 0 0 12 4,607 4,570 Consumer: Bankcard 0 0 0 0 0 0 Other consumer 0 0 0 3 69 36 Total 4 $ 7,470 $ 7,579 79 $ 33,070 $ 32,393 The following table presents troubled debt restructurings, by class of loan, that were restructured during the twelve-month period ended June 30, 2021 and had charge-offs during the three months and six months ended June 30, 2021. The recorded investment amounts presented were as of the June 30, 2021 balance sheet date. Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Number of Recorded Number of Recorded Troubled Debt Restructurings Commercial real estate: Owner-occupied 0 $ 0 0 $ 0 Nonowner-occupied 0 0 0 0 Other commercial 0 0 0 0 Residential real estate 1 0 1 0 Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Number of Recorded Number of Recorded Troubled Debt Restructurings Construction & land development 1 0 2 0 Consumer: Bankcard 0 0 0 0 Other consumer 0 0 0 0 Total 2 $ 0 3 $ 0 The following table presents troubled debt restructurings, by class of loan, that were restructured during the twelve-month period ended June 30, 2020 and had charge-offs during the three and six months ended June 30, 2020. The recorded investment amounts presented were as of the June 30, 2020 balance sheet date. Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Number of Recorded Number of Recorded Troubled Debt Restructurings Commercial real estate: Owner-occupied 0 $ 0 0 $ 0 Nonowner-occupied 0 0 0 0 Other commercial 0 0 0 0 Residential real estate 0 0 0 0 Construction & land development 1 690 1 690 Consumer: Bankcard 0 0 0 0 Other consumer 0 0 0 0 Total 1 $ 690 1 $ 690 The following table sets forth United’s age analysis of its past due loans and leases, segregated by class of loans: Age Analysis of Past Due Loans and Leases As of June 30, 2021 30-89 Days 90 Days or Total Past Current & Total Financing 90 Days or Commercial real estate: Owner-occupied $ 4,735 $ 19,849 $ 24,584 $ 1,565,117 $ 1,589,701 $ 832 Nonowner-occupied 5,753 25,720 31,473 4,949,753 4,981,226 1,876 Other commercial 38,932 13,444 52,376 3,605,396 3,657,772 1,028 Residential real estate 19,763 23,145 42,908 3,544,149 3,587,057 8,361 Construction & land development 1,637 3,386 5,023 1,924,029 1,929,052 133 Consumer: Bankcard 41 189 230 7,710 7,940 189 Other consumer 11,938 2,101 14,039 1,154,865 1,168,904 1,762 Total $ 82,799 $ 87,834 $ 170,633 $ 16,751,019 $ 16,921,652 $ 14,181 Age Analysis of Past Due Loans and Leases As of December 31, 2020 30-89 Days 90 Days or Total Past Current & Total Financing 90 Days or Commercial real estate: Owner-occupied $ 4,556 $ 28,479 $ 33,035 $ 1,589,652 $ 1,622,687 $ 0 Nonowner-occupied 6,837 29,292 36,129 4,981,598 5,017,727 1,284 Other commercial 13,796 26,274 40,070 4,014,348 4,054,418 1,001 Age Analysis of Past Due Loans and Leases As of December 31, 2020 30-89 Days 90 Days or Total Past Current & Total Financing 90 Days or Residential real estate 32,743 24,892 57,635 3,842,250 3,899,885 8,574 Construction & land development 1,919 5,885 7,804 1,818,545 1,826,349 461 Consumer: Bankcard 362 156 518 8,419 8,937 156 Other consumer 14,765 2,757 17,522 1,175,058 1,192,580 2,356 Total $ 74,978 $ 117,735 $ 192,713 $ 17,429,870 $ 17,622,583 $ 13,832 The following table sets forth United’s nonaccrual loans and leases, segregated by class of loans: At June 30, 2021 At December 31, 2020 Nonaccruals With No 90 Days or Nonaccruals With No 90 Days or Commercial Real Estate: Owner-occupied $ 19,017 $ 19,017 $ 832 $ 28,479 $ 28,479 $ 0 Nonowner-occupied 23,844 20,404 1,876 28,008 16,070 1,284 Other Commercial 12,416 9,191 1,028 25,273 13,149 1,001 Residential Real Estate 14,784 13,790 8,361 16,318 14,769 8,574 Construction 3,253 3,253 133 5,424 4,484 461 Consumer: Bankcard 0 0 189 0 0 156 Other consumer 339 339 1,762 401 401 2,356 Total $ 73,653 $ 65,994 $ 14,181 $ 103,903 $ 77,352 $ 13,832 Interest income recognized on nonaccrual loans was insignificant during the three and six months ended June 30, 2021 and 2020. For the adoption of ASC Topic 326, United elected the practical expedient to measure expected credit losses on collateral dependent loans and leases based on the difference between the loan’s amortized cost and the collateral’s fair value, adjusted for selling costs. The following table presents the amortized cost basis of collateral-dependent loans and leases in which repayment is expected to be derived substantially through the operation or sale of the collateral and where the borrower is experiencing financial difficulty, by class of loans and leases as of June 30, 2021 and December 31, 2020: Collateral Dependent Loans and Leases At June 30, 2021 Residential Business Land Commercial Other Total Commercial real estate: Owner-occupied $ 0 $ 44 $ 0 $ 17,266 $ 19,017 $ 36,327 Nonowner-occupied 12,985 0 2,096 8,931 16,922 40,934 Other commercial 0 14,966 0 0 1,634 16,600 Residential real estate 19,085 0 0 0 0 19,085 Construction & land development 0 0 5,114 0 812 5,926 Consumer: Bankcard 0 0 0 0 0 0 Other consumer 0 0 0 0 0 0 Total $ 32,070 $ 15,010 $ 7,210 $ 26,197 $ 38,385 $ 118,872 Collateral Dependent Loans and Leases At December 31, 2020 Residential Business Land Commercial Other Total Commercial real estate: Owner-occupied $ 1,480 $ 138 $ 0 $ 18,097 $ 21,737 $ 41,452 Nonowner-occupied 16,400 0 2,898 10,167 18,230 47,695 Other commercial 5,424 20,429 0 258 2,345 28,456 Residential real estate 21,006 229 34 0 803 22,072 Construction & land development 39 0 17,408 0 746 18,193 Consumer: Bankcard 0 0 0 0 0 0 Other consumer 0 0 0 0 1 1 Total $ 44,349 $ 20,796 $ 20,340 $ 28,522 $ 43,862 $ 157,869 United categorizes loans and leases into risk categories based on relevant information about the ability of borrowers to service their debt: current financial information, historical payment experience, credit documentation, underlying collateral (if any), public information and current economic trends, among other factors. United uses the following definitions for risk ratings: • Pass • Special Mention • Substandard • Doubtful For United’s loans with a corporate credit exposure, United analyzes loans individually to classify the loans as to credit risk. Review and analysis of criticized (special mention-rated loans in the amount of $1,000 or greater) and classified (substandard-rated and worse in the amount of $500 and greater) loans is completed once per quarter. Review of notes with committed exposure of $2,000 or greater is completed at least annually. For loans with a consumer credit exposure, United internally assigns a grade based upon an individual loan’s delinquency status. United reviews and updates, as necessary, these grades on a quarterly basis. Special mention loans, with a corporate credit exposure, have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loans or in the Company’s credit position at some future date. Borrowers may be experiencing adverse operating trends (declining revenues or margins) or an ill proportioned balance sheet (e.g., increasing inventory without an increase in sales, high leverage, tight liquidity). Adverse economic or market conditions, such as interest rate increases or the entry of a new competitor, may also support a special mention rating. Nonfinancial reasons for rating a credit exposure special mention include management problems, pending litigation, an ineffective loan agreement or other material structural weakness, and any other significant deviation from prudent lending practices. For loans with a consumer credit exposure, loans that are past due 30 89 A substandard loan with a corporate credit exposure is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt by the borrower. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. They require more intensive supervision by management. Substandard loans are generally characterized by current or expected unprofitable operations, inadequate debt service coverage, inadequate liquidity, or marginal capitalization. Repayment may depend on collateral or other credit risk mitigants. For some substandard loans, the likelihood of full collection of interest and principal may be in doubt and thus, placed on nonaccrual. For loans with a consumer credit exposure, loans that are 90 days or more past due or that have been placed on nonaccrual are considered substandard. A loan with charged-off Based on the most recent analysis Commercial Real Estate O Term Loans Origination Year Revolving loans Revolving loans converted to Total As of June 30, 2021 2021 2020 2019 2018 2017 Prior Internal Risk Grade: Pass $ 97,374 $ 284,405 $ 154,354 $ 158,806 $ 178,273 $ 621,459 $ 25,214 $ 426 $ 1,520,311 Special Mention 0 0 0 2,166 734 19,044 941 0 22,885 Substandard 0 62 44 0 1,398 43,732 700 252 46,188 Doubtful 0 0 0 0 0 317 0 0 317 Total $ 97,374 $ 284,467 $ 154,398 $ 160,972 $ 180,405 $ 684,552 $ 26,855 $ 678 $ 1,589,701 YTD charge-offs 0 0 0 0 (44 ) (166 ) 0 0 (210 ) YTD recoveries 0 0 0 0 12 72 0 0 84 YTD net charge-offs $ 0 $ 0 $ 0 $ 0 $ (32 ) $ (94 ) $ 0 $ 0 $ (126 ) Term Loans Origination Year Revolving loans Revolving loans converted to Total As of December 31, 2020 2020 2019 2018 2017 2016 Prior Internal Risk Grade: Pass $ 280,779 $ 152,851 $ 162,027 $ 198,610 $ 282,214 $ 443,312 $ 22,303 $ 0 $ 1,542,096 Special Mention 0 1,206 3,772 754 2,013 20,792 0 453 28,990 Substandard 1,935 62 0 1,117 3,788 43,354 864 149 51,269 Doubtful 0 0 0 0 0 332 0 0 332 Total $ 282,714 $ 154,119 $ 165,799 $ 200,481 $ 288,015 $ 507,790 $ 23,167 $ 602 $ 1,622,687 YTD charge-offs 0 0 0 0 0 (2,195 ) 0 0 (2,195 ) YTD recoveries 0 0 0 0 0 795 0 0 795 YTD net charge-offs $ 0 $ 0 $ 0 $ 0 $ 0 $ (1,400 ) $ 0 $ 0 $ (1,400 ) Commercial Real Estate – Nonowner-occupied Term Loans Origination Year Revolving loans Revolving loans converted to Total As of June 30, 2021 2021 2020 2019 2018 2017 Prior Internal Risk Grade: Pass $ 506,071 $ 895,827 $ 571,698 $ 508,960 $ 428,608 $ 1,663,763 $ 105,766 $ 2,078 $ 4,682,771 Special Mention 0 0 114,003 0 382 68,707 0 0 183,092 Substandard 0 735 13,814 6,995 1,124 92,695 0 0 115,363 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 506,071 $ 896,562 $ 699,515 $ 515,955 $ 430,114 $ 1,825,165 $ 105,766 $ 2,078 $ 4,981,226 YTD charge-offs 0 0 0 0 0 (3,101 ) 0 0 (3,101 ) YTD recoveries 0 0 0 0 0 303 0 0 303 YTD net charge-offs $ 0 $ 0 $ 0 $ 0 $ 0 $ (2,798 ) $ 0 $ 0 $ (2,798 ) Term Loans Origination Year Revolving loans Revolving loans connverted to Total As of December 31, 2020 2020 2019 2018 2017 2016 Prior Internal Risk Grade: Pass $ 929,001 $ 592,109 $ 596,260 $ 481,894 $ 502,417 $ 1,496,135 $ 118,404 $ 2,112 $ 4,718,332 Special Mention 0 105,104 0 391 8,902 78,591 0 0 192,988 Substandard 392 14,620 7,435 1,564 10,824 71,572 0 0 106,407 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 929,393 $ 711,833 $ 603,695 $ 483,849 $ 522,143 $ 1,646,298 $ 118,404 $ 2,112 $ 5,017,727 YTD charge-offs (38 ) 0 (300 ) 0 (3,394 ) (2,402 ) 0 0 (6,134 ) YTD recoveries 0 0 0 0 0 1,023 0 0 1,023 YTD net charge-offs $ (38 ) $ 0 $ (300 ) $ 0 $ (3,394 ) $ (1,379 ) $ 0 $ 0 $ (5,111 ) Other commercial Term Loans and leases Origination Year Revolving loans Revolving loans and leases converted to Total As of June 30, 2021 2021 2020 2019 2018 2017 Prior Internal Risk Grade: Pass $ 758,865 $ 898,082 $ 353,707 $ 129,477 $ 96,778 $ 112,242 $ 1,214,646 $ 2,257 $ 3,566,054 Special Mention 25 67 147 1,196 1,003 4,852 41,972 73 49,335 Substandard 8 1,047 807 2,234 455 21,876 15,532 284 42,243 Doubtful 0 0 0 0 0 140 0 0 140 Total $ 758,898 $ 899,196 $ 354,661 $ 132,907 $ 98,236 $ 139,110 $ 1,272,150 $ 2,614 $ 3,657,772 YTD charge-offs 0 0 (31 ) (100 ) (6 ) (2,447 ) (40 ) 0 (2,624 ) YTD recoveries 0 0 14 85 16 1,714 0 0 1,829 YTD net charge-offs $ 0 $ 0 $ (17 ) $ (15 ) $ 10 $ (733 ) $ (40 ) $ 0 $ (795 ) Term Loans and leases Origination Year Revolving loans Revolving loans and leases converted to Total As of December 31, 2020 2020 2019 2018 2017 2016 Prior Internal Risk Grade: Pass $ 1,702,787 $ 370,059 $ 200,588 $ 112,170 $ 119,582 $ 257,638 $ 1,172,699 $ 2,668 $ 3,938,191 Special Mention 333 384 4,754 1,300 138 8,231 40,048 86 55,274 Substandard 1,649 830 2,241 2,606 6,565 30,308 16,222 360 60,781 Doubtful 0 0 0 0 37 135 0 0 172 Total $ 1,704,769 $ 371,273 $ 207,583 $ 116,076 $ 126,322 $ 296,312 $ 1,228,969 $ 3,114 $ 4,054,418 YTD charge-offs 0 0 (959 ) (23 ) (3,525 ) (12,843 ) 0 0 (17,350 ) YTD recoveries 94 864 18 12 684 2,789 0 0 4,461 YTD net charge-offs $ 94 $ 864 $ (941 ) $ (11 ) $ (2,841 ) $ (10,054 ) $ 0 $ 0 $ (12,889 ) Residential Real Estate Term Loans Origination Year Revolving loans Revolving loans converted to term loans Total As of June 30, 2021 2021 2020 2019 2018 2017 Prior Internal Risk Grade: Pass $ 395,401 $ 628,539 $ 475,986 $ 407,397 $ 221,041 $ 1,019,262 $ 404,177 $ 3,044 $ 3,554,847 Special Mention 0 0 265 0 179 5,068 730 0 6,242 Substandard 0 0 393 424 3,196 21,571 270 114 25,968 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 395,401 $ 628,539 $ 476,644 $ 407,821 $ 224,416 $ 1,045,901 $ 405,177 $ 3,158 $ 3,587,057 YTD charge-offs 0 0 (30 ) 0 (116 ) (5,260 ) 0 0 (5,406 ) YTD recoveries 0 0 0 0 0 821 0 0 821 YTD net charge-offs $ 0 $ 0 $ (30 ) $ 0 $ (116 ) $ (4,439 ) $ 0 $ 0 $ (4,585 ) Term Loans Origination Year Revolving loans Revolving loans converted to Total As of December 31, 2020 2020 2019 2018 2017 2016 Prior Internal Risk Grade: Pass $ 603,714 $ 624,142 $ 640,535 $ 292,700 $ 282,547 $ 975,913 $ 436,728 $ 4,224 $ 3,860,503 Special Mention 0 267 0 192 2,325 6,623 800 0 10,207 Substandard 0 282 440 3,263 3,516 20,967 201 227 28,896 Doubtful 0 0 0 0 0 279 0 0 279 Total $ 603,714 $ 624,691 $ 640,975 $ 296,155 $ 288,388 $ 1,003,782 $ 437,729 $ 4,451 $ 3,899,885 YTD charge-offs 0 0 0 0 (1 ) (1,759 ) 0 0 (1,760 ) YTD recoveries 0 0 0 101 0 961 1 0 1,063 YTD net charge-offs $ 0 $ 0 $ 0 $ 101 $ (1 ) $ (798 ) $ 1 $ 0 $ (697 ) Construction and Land Development Term Loans Origination Year Revolving loans Revolving loans converted to Total As of June 30, 2021 2021 2020 2019 2018 2017 Prior Internal Risk Grade: Pass $ 282,876 $ 507,181 $ 501,304 $ 267,413 $ 93,005 $ 86,486 $ 167,545 $ 0 $ 1,905,810 Special Mention 0 0 0 2,419 550 1,221 995 0 5,185 Substandard 386 0 278 941 0 15,706 746 0 18,057 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 283,262 $ 507,181 $ 501,582 $ 270,773 $ 93,555 $ 103,413 $ 169,286 $ 0 $ 1,929,052 YTD charge-offs 0 0 0 0 0 (255 ) 0 0 (255 ) YTD recoveries 0 0 0 0 0 48 0 0 48 YTD net charge-offs $ 0 $ 0 $ 0 $ 0 $ 0 $ (207 ) $ 0 $ 0 $ (207 ) Term Loans Origination Year Revolving loans Revolving loans converted to Total \ 2020 2019 2018 2017 2016 Prior Internal Risk Grade: Pass $ 420,977 $ 663,113 $ 304,579 $ 127,377 $ 83,252 $ 53,713 $ 145,431 $ 0 $ 1,798,442 Special Mention 0 0 4,689 557 0 1,420 995 0 7,661 Substandard 0 250 1,535 0 216 17,499 746 0 20,246 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 420,977 $ 663,363 $ 310,803 $ 127,934 $ 83,468 $ 72,632 $ 147,172 $ 0 $ 1,826,349 YTD charge-offs 0 0 0 0 0 (2,027 ) 0 0 (2,027 ) YTD recoveries 0 0 0 0 0 1,513 0 0 1,513 YTD net charge-offs $ 0 $ 0 $ 0 $ 0 $ 0 $ (514 ) $ 0 $ 0 $ (514 ) Bankcard Term Loans Origination Year Revolving loans Revolving loans converted to term loans Total As of June 30, 2021 2021 2020 2019 2018 2017 Prior Internal Risk Grade: Pass $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 7,710 $ 0 $ 7,710 Special Mention 0 0 0 0 0 0 41 0 41 Substandard 0 0 0 0 0 0 189 0 189 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 7,940 $ 0 $ 7,940 YTD charge-offs 0 0 0 0 0 0 (106 ) 0 (106 ) YTD recoveries 0 0 0 0 0 0 30 0 30 YTD net charge-offs $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ (76 ) $ 0 $ (76 ) Term Loans Origination Year Revolving loans Revolving loans converted to term loans Total As of December 31, 2020 Internal Risk Grade: Pass $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 8,419 $ 0 $ 8,419 Special Mention 0 0 0 0 0 0 362 0 362 Substandard 0 0 0 0 0 0 156 0 156 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 8,937 $ 0 $ 8,937 YTD charge-offs 0 0 0 0 0 0 (221 ) 0 (221 ) YTD recoveries 0 0 0 0 0 0 52 0 52 YTD net charge-offs $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ (169 ) $ 0 $ (169 ) Other Consumer Term Loans Origination Year Revolving loans Revolving loans converted to Total As of June 30, 2021 2021 2020 2019 2018 2017 Prior Internal Risk Grade: Pass $ 241,796 $ 380,844 $ 311,882 $ 170,348 $ 48,919 $ 12,089 $ 3,017 $ 0 $ 1,168,895 Special Mention 0 0 0 0 0 6 1 0 7 Substandard 0 2 0 0 0 0 0 0 2 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 241,796 $ 380,846 $ 311,882 $ 170,348 $ 48,919 $ 12,095 $ 3,018 $ 0 $ 1,168,904 YTD charge-offs 0 (395 ) (505 ) (263 ) (80 ) (136 ) (7 ) 0 (1,386 ) YTD recoveries 0 34 25 38 8 103 2 0 210 YTD net charge-offs $ 0 $ (361 ) $ (480 ) $ (225 ) $ (72 ) $ (33 ) $ (5 ) $ 0 $ (1,176 ) Term Loans Origination Year Revolving loans Revolving loans converted to Total As of December 31, 2020 2020 2019 2018 2017 2016 Prior Internal Risk Grade: Pass $ 419,768 $ 401,958 $ 231,172 $ 74,550 $ 34,435 $ 7,466 $ 6,110 $ 0 $ 1,175,459 Special Mention 0 0 0 0 0 14,763 2 0 14,765 Substandard 3 0 0 0 0 2,352 0 0 2,355 Doubtful 0 0 0 0 0 1 0 0 1 Total $ 419,771 $ 401,958 $ 231,172 $ 74,550 $ 34,435 $ 24,582 $ 6,112 $ 0 $ 1,192,580 YTD charge-offs (136 ) (1,013 ) (1,040 ) (393 ) (228 ) (484 ) (2 ) 0 (3,296 ) YTD recoveries 3 74 113 30 43 216 0 0 479 YTD net charge-offs $ (133 ) $ (939 ) $ (927 ) $ (363 ) $ (185 ) $ (268 ) $ (2 ) $ 0 $ (2,817 ) At June 30, 2021 and December 31, 2020, other real estate owned (“OREO”) included in other assets in the Consolidated Balance Sheets was $18,474 and $22,595, respectively. OREO consists of real estate acquired in foreclosure or other settlement of loans. Such assets are carried at the lower of the investment in the assets or the fair value of the assets less estimated selling costs. Any adjustment to the fair value at the date of transfer is charged o |