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 September 30, 2023
(in thousands)	Beginning Balance		Charge-offs		Recoveries		Provision (benefit)		Ending Balance
Commercial real estate:
CRE non-owner occupied	$	33,042	$	—	$	—	$	681	$	33,723
CRE owner occupied	20,208		(3,608)		—		(2,097)		14,503
Multifamily	14,075		—		—		164		14,239
Farmland	3,691		—		—		519		4,210
Total commercial real estate loans	71,016		(3,608)		—		(733)		66,675
Consumer:
SFR 1-4 1st DT liens	13,134		—		262		139		13,535
SFR HELOCs and junior liens	10,608		—		314		(759)		10,163
Other	2,771		(133)		52		230		2,920
Total consumer loans	26,513		(133)		628		(390)		26,618
Commercial and industrial	11,647		(1,616)		91		2,168		12,290
Construction	7,031		—		—		1,066		8,097
Agriculture production	1,105		—		1		1,019		2,125
Leases	17		—		—		(10)		7
Allowance for credit losses on loans	117,329		(5,357)		720		3,120		115,812
Reserve for unfunded commitments	4,865		—		—		1,035		5,900
Total	$	122,194	$	(5,357)	$	720	$	4,155	$	121,712


	Allowance for credit losses – Nine months ended September 30, 2023
(in thousands)	Beginning Balance		Charge-offs		Recoveries		Provision (benefit)		Ending Balance
Commercial real estate:
CRE non-owner occupied	$	30,962	$	—	$	—	$	2,761	$	33,723
CRE owner occupied	14,014		(3,608)		1		4,096		14,503
Multifamily	13,132		—		—		1,107		14,239
Farmland	3,273		—		—		937		4,210
Total commercial real estate loans	61,381		(3,608)		1		8,901		66,675
Consumer:
SFR 1-4 1st DT liens	11,268		—		262		2,005		13,535
SFR HELOCs and junior liens	11,413		(42)		416		(1,624)		10,163
Other	1,958		(438)		129		1,271		2,920
Total consumer loans	24,639		(480)		807		1,652		26,618
Commercial and industrial	13,597		(3,303)		267		1,729		12,290
Construction	5,142		—		—		2,955		8,097
Agriculture production	906		—		33		1,186		2,125
Leases	15		—		—		(8)		7
Allowance for credit losses on loans	105,680		(7,391)		1,108		16,415		115,812
Reserve for unfunded commitments	4,315		—		—		1,585		5,900
Total	$	109,995	$	(7,391)	$	1,108	$	18,000	$	121,712

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

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, particularly CA unemployment trends. Despite continued declines on a year over year comparative basis, core inflation remains elevated from wage pressures, and higher living costs such as housing and food prices. Management notes the rapid intervals of rate increases by the Federal Reserve and flattening or inversion of the yield curve, have formed expectations of the US entering a recession within 12 months. As a result, management continues to believe that certain credit weaknesses 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


	Allowance for credit losses – Year ended December 31, 2022
(in thousands)	Beginning Balance		ACL of PCD Loans		Charge-offs		Recoveries		Provision (benefit)		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 September 30, 2022
(in thousands)	Beginning Balance		Charge-offs		Recoveries		Provision (benefit)		Ending Balance
Commercial real estate:
CRE non-owner occupied	$	28,081	$	—	$	1	$	1,162	$	29,244
CRE owner occupied	12,620		—		1		904		13,525
Multifamily	11,795		—		—		954		12,749
Farmland	2,954		—		—		168		3,122
Total commercial real estate loans	55,450		—		2		3,188		58,640
Consumer:
SFR 1-4 1st DT liens	10,311		—		38		322		10,671
SFR HELOCs and junior liens	11,591		—		98		(306)		11,383
Other	2,029		(185)		53		(19)		1,878
Total consumer loans	23,931		(185)		189		(3)		23,932
Commercial and industrial	9,979		(82)		119		384		10,400
Construction	7,522		—		—		(1,390)		6,132
Agriculture production	1,046		—		1		1,321		2,368
Leases	16		—		—		—		16
Allowance for credit losses on loans	97,944		(267)		311		3,500		101,488
Reserve for unfunded commitments	4,075		—		—		295		4,370
Total	$	102,019	$	(267)	$	311	$	3,795	$	105,858


	Allowance for credit losses – Nine months ended September 30, 2022
(in thousands)	Beginning Balance		Adoption of CECL		Charge-offs		Recoveries		Provision (benefit)		Ending Balance
Commercial real estate:
CRE non-owner occupied	$	25,739	$	746	$	—	$	1	$	2,758	$	29,244
CRE owner occupied	10,691		63		—		2		2,769		13,525
Multifamily	12,395		—		—		—		354		12,749
Farmland	2,315		764		(294)		—		337		3,122
Total commercial real estate loans	51,140		1,573		(294)		3		6,218		58,640
Consumer:
SFR 1-4 1st DT liens	10,723		144		—		79		(275)		10,671
SFR HELOCs and junior liens	10,510		—		—		426		447		11,383
Other	2,241		—		(470)		200		(93)		1,878
Total consumer loans	23,474		144		(470)		705		79		23,932
Commercial and industrial	3,862		81		(647)		1,130		5,974		10,400
Construction	5,667		201		—		—		264		6,132
Agriculture production	1,215		38		—		3		1,112		2,368
Leases	18		—		—		—		(2)		16
Allowance for credit losses on loans	85,376		2,037		(1,411)		1,841		13,645		101,488
Reserve for unfunded commitments	3,790		—		—		—		580		4,370
Total	$	89,166	$	2,037	$	(1,411)	$	1,841	$	14,225	$	105,858

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.

•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.


	Term Loans Amortized Cost Basis by Origination Year – As of September 30, 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	$	115,862	$	416,733	$	285,875	$	138,751	$	221,819	$	820,605	$	118,512	$	—	$	2,118,157
Special Mention	—		—		7,412		5,366		17,329		4,460		1,348		—		35,915
Substandard	—		—		767		—		2,371		14,000		212		—		17,350
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total	$	115,862	$	416,733	$	294,054	$	144,117	$	241,519	$	839,065	$	120,072	$	—	$	2,171,422
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—




Commercial real estate:
CRE owner occupied risk ratings
Pass	$	64,781	$	189,041	$	194,280	$	120,636	$	60,562	$	282,391	$	27,536	$	—	$	939,227
Special Mention	—		838		4,417		2,783		710		2,486		—		—		11,234
Substandard	—		3,012		3,546		—		112		843		80		—		7,593
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total	$	64,781	$	192,891	$	202,243	$	123,419	$	61,384	$	285,720	$	27,616	$	—	$	958,054
Current period gross charge-offs	$	—	$	—	$	—	$	1,380	$	—	$	2,228	$	—	$	—	$	3,608


	Term Loans Amortized Cost Basis by Origination Year – As of September 30, 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	$	21,860	$	178,946	$	279,961	$	89,658	$	106,982	$	232,474	$	37,569	$	—	$	947,450
Special Mention	—		—		11,911		—		—		—		—		—		11,911
Substandard	—		—		—		—		—		—		—		—		—
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total	$	21,860	$	178,946	$	291,872	$	89,658	$	106,982	$	232,474	$	37,569	$	—	$	959,361
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


Commercial real estate:
Farmland risk ratings
Pass	$	17,998	$	46,403	$	43,434	$	16,139	$	17,007	$	44,792	$	53,072	$	—	$	238,845
Special Mention	—		3,119		—		391		261		759		163		—		4,693
Substandard	101		—		9,058		—		4,928		13,863		7,120		—		35,070
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total	$	18,099	$	49,522	$	52,492	$	16,530	$	22,196	$	59,414	$	60,355	$	—	$	278,608
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


Consumer loans:
SFR 1-4 1st DT liens risk ratings
Pass	$	108,061	$	191,360	$	263,602	$	125,005	$	31,255	$	133,233	$	—	$	4,164	$	856,680
Special Mention	72		—		—		1,694		—		2,296		—		4		4,066
Substandard	—		144		1,314		1,500		533		5,609		—		363		9,463
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total	$	108,133	$	191,504	$	264,916	$	128,199	$	31,788	$	141,138	$	—	$	4,531	$	870,209
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


Consumer loans:
SFR HELOCs and junior liens risk ratings
Pass	$	297	$	—	$	—	$	—	$	—	$	102	$	340,616	$	6,947	$	347,962
Special Mention	—		—		—		—		—		—		1,522		170		1,692
Substandard	—		—		—		—		—		—		2,759		385		3,144
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total	$	297	$	—	$	—	$	—	$	—	$	102	$	344,897	$	7,502	$	352,798
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—




Consumer loans:
Other risk ratings
Pass	$	23,352	$	9,854	$	9,908	$	8,119	$	7,640	$	5,286	$	649	$	—	$	64,808
Special Mention	—		—		93		13		90		4		13		—		213
Substandard	89		190		217		30		195		59		2		—		782
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total	$	23,441	$	10,044	$	10,218	$	8,162	$	7,925	$	5,349	$	664	$	—	$	65,803
Current period gross charge-offs	$	103	$	28	$	—	$	—	$	—	$	—	$	2	$	—	$	133


	Term Loans Amortized Cost Basis by Origination Year – As of September 30, 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	$	59,305	$	87,646	$	55,348	$	11,173	$	13,469	$	8,473	$	352,476	$	276	$	588,166
Special Mention	44		2,665		205		40		—		217		4,135		—		7,306
Substandard	—		374		768		126		11		835		2,073		98		4,285
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total	$	59,349	$	90,685	$	56,321	$	11,339	$	13,480	$	9,525	$	358,684	$	374	$	599,757
Current period gross charge-offs	$	26	$	287	$	240	$	735	$	—	$	—	$	328	$	—	$	1,616


Construction loans:
Construction risk ratings
Pass	$	32,433	$	144,274	$	77,013	$	47,525	$	4,661	$	6,330	$	—	$	—	$	312,236
Special Mention	—		8,656		—		—		—		—		—		—		8,656
Substandard	—		—		—		—		71		—		—		—		71
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total	$	32,433	$	152,930	$	77,013	$	47,525	$	4,732	$	6,330	$	—	$	—	$	320,963
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


Agriculture production loans:
Agriculture production risk ratings
Pass	$	457	$	2,984	$	2,260	$	716	$	684	$	8,562	$	95,011	$	—	$	110,674
Special Mention	—		—		—		—		—		—		8,928		—		8,928
Substandard	—		—		—		—		—		—		3,870		—		3,870
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total	$	457	$	2,984	$	2,260	$	716	$	684	$	8,562	$	107,809	$	—	$	123,472
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


Leases:
Lease risk ratings
Pass	$	8,219	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$8,219
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total	$	8,219	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	8,219
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—




Total loans outstanding:
Risk ratings
Pass	$	452,625	$	1,267,241	$	1,211,681	$	557,722	$	464,079	$	1,542,248	$	1,025,441	$	11,387	$	6,532,424
Special Mention	116		15,278		24,038		10,287		18,390		10,222		16,109		174		94,614
Substandard	190		3,720		15,670		1,656		8,221		35,209		16,116		846		81,628
Doubtful/Loss	—		—		—		—		—		—		—		—		—
Total	$	452,931	$	1,286,239	$	1,251,389	$	569,665	$	490,690	$	1,587,679	$	1,057,666	$	12,407	$	6,708,666
Current period gross charge-offs	$	129	$	315	$	240	$	2,115	$	—	$	2,228	$	330	$	—	$	5,357


	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


	Analysis of Past Due Loans - As of September 30, 2023
(in thousands)	30-59 days		60-89 days		> 90 days		Total Past Due Loans		Current		Total
Commercial real estate:
CRE non-owner occupied	$	403	$	—	$	212	$	615	$	2,170,807	$	2,171,422
CRE owner occupied	138		117		230		485		957,569		958,054
Multifamily	—		—		—		—		959,361		959,361
Farmland	—		—		264		264		278,344		278,608
Total commercial real estate loans	541		117		706		1,364		4,366,081		4,367,445
Consumer:
SFR 1-4 1st DT liens	398		560		572		1,530		868,679		870,209
SFR HELOCs and junior liens	1,570		1,391		294		3,255		349,543		352,798
Other	119		21		75		215		65,588		65,803
Total consumer loans	2,087		1,972		941		5,000		1,283,810		1,288,810
Commercial and industrial	53		108		1,514		1,675		598,082		599,757
Construction	—		—		—		—		320,963		320,963
Agriculture production	—		—		33		33		123,439		123,472
Leases	—		—		—		—		8,219		8,219
Total	$	2,681	$	2,197	$	3,194	$	8,072	$	6,700,594	$	6,708,666


	Analysis of Past Due Loans - As of December 31, 2022
(in thousands)	30-59 days		60-89 days		> 90 days		Total Past Due Loans		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 September 30, 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	$	1,105	$	1,105	$	—	$	1,739	$	1,739	$	—
CRE owner occupied	3,898		3,898		—		4,938		4,938		—
Multifamily	—		—		—		125		125		—
Farmland	6,132		11,707		—		1,772		1,772		—
Total commercial real estate loans	11,135		16,710		—		8,574		8,574		—
Consumer:
SFR 1-4 1st DT liens	2,883		2,884		—		4,117		4,220		—
SFR HELOCs and junior liens	2,751		3,158		—		2,498		3,155		—
Other	82		156		—		47		84		—
Total consumer loans	5,716		6,198		—		6,662		7,459		—
Commercial and industrial	1,479		2,907		43		1,224		3,518		—
Construction	71		71		—		491		491		—
Agriculture production	3,357		3,870		—		1,279		1,279		—
Leases	—		—		—		—		—		—
Sub-total	21,758		29,756		43		18,230		21,321		—
Less: Guaranteed loans	(797)		(936)		—		(105)		(225)
Total, net	$	20,961	$	28,820	$	43	$	18,125	$	21,096	$	—

Interest income on non accrual loans that would have been recognized during the three months ended September 30, 2023 and 2022, if all such loans had been current in accordance with their original terms, totaled $0.4 million and $0.5 million, respectively. Interest income actually recognized on these originated loans during the three months ended September 30, 2023 and 2022 was $0.1 million and $0.3 million, respectively.


	As of September 30, 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	$	127	$	212	$	—	$	766	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	1,105
CRE owner occupied	641		75		165		3,017		—		—		—		—		—		—		—		3,898
Multifamily	—		—		—		—		—		—		—		—		—		—		—		—
Farmland	—		—		—		743		—		10,964		—		—		—		—		—		11,707
Total commercial real estate loans	768		287		165		4,526		—		10,964		—		—		—		—		—		16,710
Consumer:
SFR 1-4 1st DT liens	—		—		—		—		—		—		2,883		—		—		—		—		2,883
SFR HELOCs and junior liens	—		—		—		—		—		—		1,705		1,011		—		—		—		2,716
Other	—		—		—		—		—		—		—		—		146		—		—		146
Total consumer loans	—		—		—		—		—		—		4,588		1,011		146		—		—		5,745
Commercial and industrial	—		—		—		—		—		—		—		—		—		1,828		1,079		2,907
Construction	—		—		—		—		—		—		71		—		—		—		—		71
Agriculture production	—		—		—		1,404		—		—		—		—		—		—		2,466		3,870
Leases	—		—		—		—		—		—		—		—		—		—		—		—
Total	$	768	$	287	$	165	$	5,930	$	—	$	10,964	$	4,659	$	1,011	$	146	$	1,828	$	3,545	$	29,303


	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 September 30, 2023
(in thousands)	Principal Forgiveness		Payment Delay/Term Extension		Interest Rate Reduction		Combination - Payment Delay/Term Reduction		Total % of Loans Outstanding
Commercial real estate:



Farmland	$	—	$	—	$	—	$	1,043	0.37	%






Commercial and industrial	—		45		—		—		0.01	%



Total	$	—	$	45	$	—	$	1,043	0.38	%


	For the nine months ended September 30, 2023
(in thousands)	Principal Forgiveness		Payment Delay/Term Extension		Interest Rate Reduction		Combination - Payment Delay/Term Reduction		Total % of Loans Outstanding
Commercial real estate:



Farmland	$	—	$	—	$	—	$	1,043	0.37	%






Commercial and industrial	—		206		—		—		0.03	%



Total	$	—	$	206	$	—	$	1,043	0.40	%


	Three months ended September 30, 2023				Nine months ended September 30, 2023
	Term Change from Amortizing to I/O		12 Months Term Extension		Term Change from Amortizing to I/O		12 Months Term Extension
Farmland	$	1,043	$	—	$	1,043	$	—
Commercial and industrial	45		—		45		206
Total	$	1,088	$	—	$	1,088	$	206

There were no loans with payment defaults by borrowers experiencing financial difficulty during the quarter ended September 30, 2023 which had material modifications in rate, term or principal forgiveness during the twelve months prior to default.