The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, was signed into law on March 27, 2020, and provides over $2 trillion in economic relief to individuals and businesses impacted by the COVID-19 pandemic. The CARES Act authorized the Small Business Administration (“SBA”) to temporarily guarantee loans under a new 7(a) loan program called the Paycheck Protection Program (“PPP”). As a qualified SBA lender, we were automatically authorized to originate PPP loans and began accepting applications on April 2, 2020.

An eligible business can apply for a PPP loan up to the greater of: (1) 2.5 times its average monthly “payroll costs;” or (2) $10 million. PPP loans will have: (a) an interest rate of 1.0%; (b) a two-year loan term to maturity; and (c) principal and interest payments deferred for six months from the date of disbursement. The SBA will guarantee 100% of the PPP loans made to eligible borrowers. The entire principal amount of the borrower’s PPP loan, including any accrued interest, is eligible to be reduced by the loan forgiveness amount under the PPP so long as employee and compensation levels of the business are maintained and 75% of the loan proceeds are used for payroll expenses, with the remaining 25% of the loan proceeds used for other qualifying expenses.

The CARES Act provided an initial $349 billion in funding for PPP loans, which was fully exhausted by loans made through April 16, 2020. On April 24, 2020, Congress approved an additional round of funding of approximately $310 billion to replenish the PPP.

As of May 5, 2020, we have received SBA approval on 2,139 loans totaling $262,100 of loans under the PPP. We have submitted the documentation, which has been reviewed and approved, to borrow from the Paycheck Protection Program Lending Facility. We expect to match this funding with the volume of PPP loans outstanding.

As of May 5, 2020, we had modified 653 loans aggregating $357,549 from customers impacted by the COVID-19 pandemic. These modifications consist primarily of deferral of principal and interest payments. Of these modifications, $357,549, or 100%, were performing in accordance with their terms. Details with respect to actual loan modifications are as follows:

	Number of				Weighted Average
Type of Loan	Loans		Balance		Interest Rate
			(In thousands)
Commercial & Agriculture		215	$	49,944		4.74	%
Commercial Real Estate:
Owner Occupied		163		78,983		4.84	%
Non-Owner Occupied		114		183,935		4.36	%
Residential Real Estate		119		19,860		4.51	%
Real Estate Construction		15		23,898		4.46	%
Farm Real Estate		6		578		5.18	%
Consumer and Other		21		351		4.56	%
Total		653	$	357,549		4.54	%