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Loans
 3 Months Ended
Mar. 31, 2021
Loans and Leases Receivable, Net Amount [Abstract]  
Loans Loans
The Company’s loan portfolio includes originated and purchased loans. The following is an analysis of the loan portfolio by segment and class (net of unearned income):
March 31, 2021December 31, 2020
(dollars in thousands)
Commercial loans:
Commercial real estate$4,081,915 $4,062,313 
Commercial business3,792,813 3,597,968 
Agriculture751,800 779,627 
Construction282,534 268,663 
Consumer loans:
One-to-four family residential real estate735,314 683,570 
Other consumer31,942 35,519 
Total loans9,676,318 9,427,660 
Less: Allowance for credit losses(148,294)(149,140)
Total loans, net$9,528,024 $9,278,520 
At March 31, 2021 and December 31, 2020, the Company had no material foreign activities. Substantially all of the Company’s loans and unfunded commitments are geographically concentrated in its service areas within the states of Washington, Oregon and Idaho.
At March 31, 2021 and December 31, 2020, $3.49 billion and $3.46 billion of commercial and residential real estate loans were pledged as collateral on FHLB advances and additional borrowing capacity. The Company has also pledged $200.1 million and $200.4 million of commercial loans to the FRB for additional borrowing capacity at March 31, 2021 and December 31, 2020, respectively.
Accrued interest receivable for loans is included in “Interest receivable” on the Company’s Consolidated Balance Sheet and is not reflected in the balances in the table above. At March 31, 2021 and December 31, 2020, accrued interest receivable for loans was $35.2 million and $37.8 million, respectively. The Company does not measure an allowance for credit losses for accrued interest receivable.
The following is an aging of the recorded investment of the loan portfolio at the dates presented:
Current
Loans		30 - 59
Days
Past Due		60 - 89
Days
Past Due		Greater
than 90
Days Past
Due		Total
Past Due		Nonaccrual
Loans		Total Loans
March 31, 2021(in thousands)
Commercial loans:
Commercial real estate$4,067,718 $880 $6,000 $— $6,880 $7,317 $4,081,915 
Commercial business3,778,955 109 198 — 307 13,551 3,792,813 
Agriculture739,599 1,060 512 — 1,572 10,629 751,800 
Construction282,343 — — — — 191 282,534 
Consumer loans:
One-to-four family residential real estate728,053 5,462 48 — 5,510 1,751 735,314 
Other consumer31,758 27 15 — 42 142 31,942 
Total$9,628,426 $7,538 $6,773 $— $14,311 $33,581 $9,676,318 
Current
Loans		30 - 59
Days
Past Due		60 - 89
Days
Past Due		Greater
than 90
Days Past
Due		Total
Past Due		Nonaccrual
Loans		Total Loans
December 31, 2020(in thousands)
Commercial loans:
Commercial real estate$4,037,309 $17,292 $— — $17,292 $7,712 $4,062,313 
Commercial business3,578,905 1,282 4,559 — 5,841 13,222 3,597,968 
Agriculture767,102 911 — — 911 11,614 779,627 
Construction268,304 — 142 — 142 217 268,663 
Consumer loans:
One-to-four family residential real estate677,627 2,283 1,659 — 3,942 2,001 683,570 
Other consumer35,450 24 5 — 29 40 35,519 
Total$9,364,697 $21,792 $6,365 $— $28,157 $34,806 $9,427,660 
Loan payments are considered timely when the contractual principal or interest due in accordance with the terms of the loan agreement or any portion thereof is received on the due date of the scheduled payment. In addition, the risk rating on loans modified in association with the CARES Act or Interagency guidance did not change. These loans are not considered past due until after the deferral period is over and scheduled payments resume. Accrued interest on these COVID-19 modified loans is due, in full, when the deferral period ends. The credit quality of these loans will be reevaluated after the deferral period ends.
Nonaccrual loans are generally loans placed on a nonaccrual basis when they become 90 days past due or when there are otherwise serious doubts about the collectability of principal or interest within the existing terms of the loan. The Company’s policy is to write-off all accrued interest on loans when they are placed on nonaccrual status.
The following table summarizes written-off interest on nonaccrual loans for the periods indicated:
Three Months Ended March 31,
20212020
(in thousands)
Commercial loans$211 $783 
Consumer loans7 5 
Total$218 $788 
The following summarizes the amortized cost of nonaccrual loans for which there was no related ACL for the periods indicated:
March 31, 2021December 31, 2020
(in thousands)
Commercial loans:
Commercial real estate$6,336 $6,393 
Commercial business8,682 6,382 
Agriculture8,379 8,136 
Total$23,397 $20,911 
The following is an analysis of loans classified as TDR for the periods indicated:
Three Months Ended March 31, 2021Three Months Ended March 31, 2020
Number of TDR ModificationsPre-Modification
Outstanding
Recorded
Investment 		Post-Modification
Outstanding
Recorded
Investment 		Number of TDR ModificationsPre-Modification
Outstanding
Recorded
Investment 		Post-Modification
Outstanding
Recorded
Investment
(dollars in thousands)
Commercial loans:
Commercial real estate1 $628 $628 — $— $— 
Commercial business7 843 843 2 272 272 
Agriculture— — — 1 895 895 
Consumer loans:
One-to-four family residential real estate2 140 140 1 68 68 
Total10 $1,611 $1,611 4 $1,235 $1,235 

The Company’s loans classified as TDR are loans that have been modified or with respect to which the borrower has been granted special concessions due to financial difficulties that, if not for the challenges of the borrower, the Company would not otherwise consider. The TDR modifications or concessions are made to increase the likelihood that these borrowers with financial difficulties will be able to satisfy their debt obligations as amended. The concessions granted in the restructurings, summarized in the table above, largely consisted of maturity extensions, interest rate modifications or a combination of both. In limited circumstances, a reduction in the principal balance of the loan could also be made as a concession. Loans classified as TDR are included with the loans collectively measured for credit losses.
The Company had commitments to lend $672 thousand of additional funds on loans classified as TDR as of March 31, 2021. The Company had $651 thousand of such commitments at December 31, 2020. The Company had no loans classified as TDR that defaulted within 12 months of being classified as TDR during the three months ended March 31, 2021 and 2020.
Financial institutions are required to maintain records of the volume of loans involved in modifications to which troubled debt restructuring relief is applicable. At March 31, 2021, the Company had 20 short–term deferments on $71.4 million of loans, gross of unearned income. These short–term deferments are not classified as TDR’s and will not be reported as past due provided that they are performing in accordance with the modified terms.
The Company offered PPP loans to provide financial support to small and medium-size businesses to cover payroll and certain other expenses during the COVID-19 pandemic. The PPP was established by the CARES Act and is implemented by the U.S. SBA with support from the U.S. Department of Treasury. The program, which was amended by the Paycheck Protection Flexibility Act of 2020, provides small businesses with funds to pay up to 24 weeks of payroll costs including benefits, as well as interest on mortgages, rent and utilities. Funds are provided to small businesses in the form of loans that will be fully forgiven when used for permitted purposes and when at least 60% of the funds are used for payroll costs and applicable employment levels are maintained in accordance with the requirements of the amended PPP. At March 31, 2021, we had $894.1 million of PPP loans outstanding, which are included in commercial business loans.