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Loans
 9 Months Ended
Sep. 30, 2022
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):
September 30, 2022December 31, 2021
(dollars in thousands)
Commercial loans:
Commercial real estate$5,375,051 $4,981,263 
Commercial business3,783,696 3,423,268 
Agriculture903,260 795,715 
Construction512,308 384,755 
Consumer loans:
One-to-four family residential real estate1,071,222 1,013,908 
Other consumer46,724 43,028 
Total loans11,692,261 10,641,937 
Less: Allowance for credit losses(154,871)(155,578)
Total loans, net$11,537,390 $10,486,359 
At September 30, 2022 and December 31, 2021, 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, Idaho and California.
At September 30, 2022 and December 31, 2021, $4.33 billion and $3.49 billion of commercial and residential real estate loans were pledged as collateral on FHLB advances and additional borrowing capacity. The Company also pledged $200.5 million of commercial loans to the FRB for additional borrowing capacity at September 30, 2022 and December 31, 2021.
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 September 30, 2022 and December 31, 2021, accrued interest receivable for loans was $39.9 million and $32.4 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
September 30, 2022(in thousands)
Commercial loans:
Commercial real estate$5,359,998 $4,753 $6,869 $— $11,622 $3,431 $5,375,051 
Commercial business3,764,976 7,565 3,974 — 11,539 7,181 3,783,696 
Agriculture900,462 509 110 — 619 2,179 903,260 
Construction512,171 137 — — 137 — 512,308 
Consumer loans:
One-to-four family residential real estate1,067,427 2,640 553 — 3,193 602 1,071,222 
Other consumer46,526 103 3 — 106 92 46,724 
Total$11,651,560 $15,707 $11,509 $— $27,216 $13,485 $11,692,261 
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, 2021(in thousands)
Commercial loans:
Commercial real estate$4,977,781 $— $1,610 $— $1,610 $1,872 $4,981,263 
Commercial business3,406,539 2,721 687 — 3,408 13,321 3,423,268 
Agriculture789,112 1,207 — — 1,207 5,396 795,715 
Construction384,755 — — — — — 384,755 
Consumer loans:
One-to-four family residential real estate1,010,343 921 211 — 1,132 2,433 1,013,908 
Other consumer42,998 11 — — 11 19 43,028 
Total$10,611,528 $4,860 $2,508 $— $7,368 $23,041 $10,641,937 
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.
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 September 30,Nine Months Ended September 30,
2022202120222021
(in thousands)
Commercial loans$288 $83 $427 $507 
Consumer loans6 16 14 25 
Total$294 $99 $441 $532 
The following summarizes the amortized cost of nonaccrual loans for which there was no related ACL for the periods indicated:
September 30, 2022December 31, 2021
(in thousands)
Commercial loans:
Commercial real estate$3,113 $932 
Commercial business1,465 5,131 
Agriculture1,192 3,756 
Total$5,770 $9,819 
The following is an analysis of loans classified as TDR for the periods indicated:
Three Months Ended September 30, 2022Three Months Ended September 30, 2021
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 business1 548 548 — $— $— 
Consumer loans:
One-to-four family residential real estate1 50 50 1 15 15 
Total2 $598 $598 1 $15 $15 

Nine Months Ended September 30, 2022Nine Months Ended September 30, 2021
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 estate
— $— $— 1 $628 $628 
Commercial business
1 548 548 11 2,600 2,600 
Agriculture
1 633 633 — — — 
Consumer loans:
One-to-four family residential real estate
1 50 50 3 155 155 
Total3 $1,231 $1,231 15 $3,383 $3,383 


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 $124 thousand of additional funds on loans classified as TDR as of September 30, 2022. The Company had $1.5 million of such commitments at December 31, 2021. The Company had no loans classified as TDR that defaulted within 12 months of being classified as TDR during the three and nine months ended September 30, 2022 and December 31, 2021.