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Allowance for Credit Losses and Allowance for Unfunded Commitments and Letters of Credit (Tables)
 9 Months Ended
Sep. 30, 2020
Financing Receivable, Allowance for Credit Loss [Line Items]  
Allowance for Credit Losses on Financing Receivables
The following tables show a detailed analysis of the ACL for the three and nine months ended September 30, 2020:
Beginning BalanceCharge-offsRecoveriesProvision
(Recapture)		Ending Balance
Three Months Ended September 30, 2020(in thousands)
Commercial loans:
Commercial real estate
$50,233 $— $65 $11,026 $61,324 
Commercial business
53,186 (3,164)1,124 (574)50,572 
Agriculture
14,868 (1,269)27 (1,165)12,461 
Construction
7,953 — 11 999 8,963 
Consumer loans:
One-to-four family residential real estate
23,711 (16)1,301 (2,889)22,107 
Other consumer
1,595 (133)76 3 1,541 
Total$151,546 $(4,582)$2,604 $7,400 $156,968 
Prior Year
Ending Balance		Impact of Adopting ASC 326Beginning BalanceCharge-offsRecoveriesProvision
(Recapture)		Ending Balance
Nine Months Ended September 30, 2020(in thousands)
Commercial loans:
Commercial real estate
$20,340 $7,533 $27,873 $(101)$92 $33,460 $61,324 
Commercial business
30,292 762 31,054 (10,290)2,795 27,013 50,572 
Agriculture
15,835 (9,325)6,510 (5,995)69 11,877 12,461 
Construction
8,571 (1,750)6,821 — 688 1,454 8,963 
Consumer loans:
One-to-four family residential real estate
7,435 4,237 11,672 (26)2,005 8,456 22,107 
Other consumer
883 778 1,661 (599)330 149 1,541 
Unallocated612 (603)9 — — (9)— 
Total$83,968 $1,632 $85,600 $(17,011)$5,979 $82,400 $156,968 
The following tables show a detailed analysis of the ALLL for the three and nine months ended September 30, 2019:
Beginning BalanceCharge-offsRecoveriesProvision
(Recapture)		Ending Balance
Three Months Ended September 30, 2019(in thousands)
Commercial loans:
Commercial real estate
$15,648 $(466)$1,731 $1,009 $17,922 
Commercial business
29,700 (2,623)349 3,453 30,879 
Agriculture
12,671 (55)67 1,216 13,899 
Construction
12,457 (17)2,555 (3,143)11,852 
Consumer loans:
One-to-four family residential real estate
7,619 (202)440 (399)7,458 
Other consumer
715 (9)74 (201)579 
Unallocated1,707 — — (1,636)71 
Total$80,517 $(3,372)$5,216 $299 $82,660 
Beginning BalanceCharge-offsRecoveriesProvision
(Recapture)		Ending Balance
Nine Months Ended September 30, 2019(in thousands)
Commercial loans:
Commercial real estate
$14,766 $(1,708)$2,801 $2,063 $17,922 
Commercial business
34,658 (8,445)1,368 3,298 30,879 
Agriculture
9,589 (194)189 4,315 13,899 
Construction
14,395 (232)3,329 (5,640)11,852 
Consumer loans:
One-to-four family residential real estate
8,024 (1,004)1,224 (786)7,458 
Other consumer
787 (64)148 (292)579 
Unallocated1,150 — — (1,079)71 
Total83,369 (11,647)9,059 1,879 82,660 
Changes in the Allowance for Unfunded Commitments and Letters of Credit
Changes in the allowance for unfunded commitments and letters of credit, a component of “Other liabilities” in the Consolidated Balance Sheets, are summarized as follows:
Three Months EndedNine Months Ended
September 30,September 30,
2020201920202019
(in thousands)
Beginning balance$8,800 $3,980 $3,430 $4,330 
Impact of adopting ASC 326— — 1,570 $— 
Net changes in the allowance for unfunded commitments and letters of credit
800 (400)4,600 (750)
Ending balance$9,600 $3,580 $9,600 $3,580 
Financing Receivable Credit Quality Indicators
The following is an analysis of the credit quality of our loan portfolio, as of September 30, 2020 and December 31, 2019:
Revolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost Basis
 Term Loans
Amortized Cost Basis by Origination Year
20202019201820172016PriorTotal (1)
September 30, 2020(in thousands)
Commercial loans:
Commercial real estate
Pass$491,625 $636,127 $499,924 $542,049 $434,390 $1,032,016 $48,664 $3,552 $3,688,347 
Special mention8,717 59,899 18,993 15,175 47,881 50,571 2,148 — 203,384 
Substandard— 9,977 17,307 13,014 45,421 43,650 5,935 — 135,304 
Total commercial real estate
$500,342 $706,003 $536,224 $570,238 $527,692 $1,126,237 $56,747 $3,552 $4,027,035 
Commercial business
Pass$1,175,587 $409,759 $357,128 $233,037 $240,648 $256,178 $915,373 $8,674 $3,596,384 
Special mention4,856 51,204 8,635 25,626 6,514 11,907 35,819 — 144,561 
Substandard3,791 6,005 17,758 5,836 7,153 6,369 44,651 3,501 95,064 
Total commercial business
$1,184,234 $466,968 $383,521 $264,499 $254,315 $274,454 $995,843 $12,175 $3,836,009 
Agriculture
Pass$147,892 $99,483 $42,464 $59,828 $60,007 $62,529 $290,986 $12,273 $775,462 
Special mention— 519 — 33 272 — 1,801 — 2,625 
Substandard2,676 13,010 6,950 4,278 2,399 4,482 37,918 490 72,203 
Total agriculture
$150,568 $113,012 $49,414 $64,139 $62,678 $67,011 $330,705 $12,763 $850,290 
Construction
Pass$89,744 $101,060 $24,130 $4,531 $782 $1,883 $25,536 $— $247,666 
Special mention— 2,259 — — — — — — 2,259 
Substandard— 17,622 5,539 — — 57 33 — 23,251 
Total construction
$89,744 $120,941 $29,669 $4,531 $782 $1,940 $25,569 $— $273,176 
Consumer loans:
One-to-four family residential real estate
Pass$88,632 $83,137 $72,896 $33,149 $24,987 $87,267 $265,475 $3,110 $658,653 
Special mention— — — — — 206 297 — 503 
Substandard— 735 227 1,177 344 2,463 1,133 197 6,276 
Total one-to-four family real estate
$88,632 $83,872 $73,123 $34,326 $25,331 $89,936 $266,905 $3,307 $665,432 
Other consumer
Pass$4,412 $3,684 $4,299 $1,172 $327 $1,161 $20,937 $736 $36,728 
Substandard31 — — 6 4 171 24 41 277 
Total consumer
$4,443 $3,684 $4,299 $1,178 $331 $1,332 $20,961 $777 $37,005 
Total$2,017,963 $1,494,480 $1,076,250 $938,911 $871,129 $1,560,910 $1,696,730 $32,574 $9,688,947 
Less:
Allowance for credit losses156,968 
Loans, net$9,531,979 
__________
(1) Loans that are on short-term deferments are treated as Pass loans and will not be reported as past due provided that they are performing in accordance with the modified terms.
Revolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost Basis
Term Loans
Amortized Cost Basis by Origination Year
20192018201720162015PriorTotal
December 31, 2019(in thousands)
Commercial loans:
Commercial real estate
Pass$699,336 $562,992 $621,113 $565,928 $441,220 $873,687 $52,276 $19,986 $3,836,538 
Special mention1,824 305 7,019 3,360 — 3,426 — — 15,934 
Substandard47 10,698 9,320 36,229 20,278 11,738 — 5,071 93,381 
Total commercial real estate
$701,207 $573,995 $637,452 $605,517 $461,498 $888,851 $52,276 $25,057 $3,945,853 
Commercial business
Pass$479,481 $442,222 $330,934 $301,337 $157,436 $199,089 $963,663 $25,577 $2,899,739 
Special mention2,241 6,673 56 2,006 52 585 12,710 — 24,323 
Substandard85 17,240 3,458 9,534 3,227 3,972 26,639 1,396 65,551 
Total commercial business$481,807 $466,135 $334,448 $312,877 $160,715 $203,646 $1,003,012 $26,973 $2,989,613 
Agriculture
Pass$107,152 $54,950 $70,337 $71,874 $33,597 $56,342 $280,984 $10,036 $685,272 
Special mention557 2,535 1,381 — 64 576 5,336 — 10,449 
Substandard7,291 6,047 6,173 5,907 1,477 5,698 30,669 6,388 69,650 
Total agriculture
$115,000 $63,532 $77,891 $77,781 $35,138 $62,616 $316,989 $16,424 $765,371 
Construction
Pass$183,525 $91,342 $40,514 $1,067 $939 $1,601 $33,388 $7,793 $360,169 
Special mention— 1,264 — — — — 41 — 1,305 
Substandard— — — — — 59 — — 59 
Total construction
$183,525 $92,606 $40,514 $1,067 $939 $1,660 $33,429 $7,793 $361,533 
Consumer loans:
One-to-four family real estate
Pass$103,315 $77,877 $32,440 $25,052 $27,294 $80,370 $283,830 $554 $630,732 
Substandard— 228 800 400 623 3,156 905 481 6,593 
Total one-to-four family real estate
$103,315 $78,105 $33,240 $25,452 $27,917 $83,526 $284,735 $1,035 $637,325 
Other consumer
Pass$9,276 $5,713 $1,974 $758 $848 $1,306 $23,351 $508 $43,734 
Substandard— — 1 — — 8 27 — 36 
Total consumer
$9,276 $5,713 $1,975 $758 $848 $1,314 $23,378 $508 $43,770 
Total$1,594,130 $1,280,086 $1,125,520 $1,023,452 $687,055 $1,241,613 $1,713,819 $77,790 $8,743,465 
Less:
Allowance for credit losses
83,968 
Loans, net$8,659,497