Management has an established methodology for determining the adequacy of the allowance for loan losses that assesses the risks and losses inherent in the loan portfolio. For purposes of determining the allowance for loan losses, the Company has segmented certain loans in the portfolio by product type. Loss migration rates for each risk category are calculated and used as the basis for calculating loan loss allowance allocations. Loss migration rates are calculated over a three-year period for all portfolio segments. Management also considers certain economic factors for trends that management uses to account for the qualitative and environmental changes in risk, which affects the level of the reserve.

The total allowance reflects management’s estimate of loan losses inherent in the loan portfolio at the balance sheet date. The Company considers the allowance for loan losses of $26,568 adequate to cover loan losses inherent in the loan portfolio, at

September 30, 2021. The following tables present, by portfolio segment, the changes in the allowance for loan losses for the three- and nine-months ended September 30, 2021 and 2020.

For the three months ended September 30, 2021	Beginning balance		Charge-offs			Recoveries		Provision			Ending Balance
Commercial & Agriculture	$	2,320	$	—		$	1	$	191		$	2,512
Commercial Real Estate:
Owner Occupied		4,027		—			—		389			4,416
Non-Owner Occupied		13,546		—			381		(757	)		13,170
Residential Real Estate		2,531		(77	)		53		89			2,596
Real Estate Construction		2,177		—			—		282			2,459
Farm Real Estate		290		—			3		15			308
Consumer and Other		202		—			10		—			212
Unallocated		1,104		—			—		(209	)		895
Total	$	26,197	$	(77	)	$	448	$	—		$	26,568

For the three months ended September 30, 2021, the Company provided $0 to the allowance for loan losses, as compared to a provision of $2,250 for the three months ended September 30, 2020. The decrease in the provision in the third quarter of 2021, as compared to the third quarter of 2020, was due to the stability of our credit quality metrics coupled with the stabilization and, in some cases, improvement of international, national, regional and local economic conditions that were adversely impacted by the 2020 economic shutdown and restrictions in response to the ongoing COVID-19 pandemic. While vaccinations in 2021 have created some level of optimism in the business community, there remains uncertainty due to the continued concern over increased infections from the Delta variant of COVID. We remain cautious given the level of classified loans in the portfolio, particularly loans to borrowers in the hotel industry as well as the challenges businesses face in today’s environment. Economic impacts related to the COVID-19 pandemic since March 2020 have included the loss of revenue experienced by our business clients, disruption of supply chains, additional employee costs for businesses due to the pandemic, higher unemployment rates throughout our footprint and a large number of customers requesting payment relief. While some of these pressures have eased, ongoing supply chain and staffing challenges, as well as the threat of inflation remain.

During the three months ended September 30, 2021, the allowance for Commercial & Agriculture loans increased due to an increase in general reserves required for this type as a result of an increase in non-PPP loan balances. Commercial and Agriculture loan balances decreased during the quarter mainly from Civista’s participation in the PPP loan program. The result was represented as an increase in the provision. The allowance for Commercial Real Estate – Owner Occupied loans increased due to an increase in general reserves required for this type as a result of increased loan balances, offset by a decrease in classified loans balances. The result was represented as an increase in the provision. The allowance for Commercial Real Estate – Non-Owner Occupied loans decreased due to decreases in classified loan balances and loss rates, offset by an increase in general reserves required as a result of an increase in loan balances. This was represented as a decrease in the provision. The allowance for Residential Real Estate loans increased due to an increase in loss rates for this type of loan. The result was represented by an increase in the provision. The allowance for Real Estate Construction loans increased due to an increase in loss rates on substandard classified loan balances, offset by lower loan balances. This was represented as an increase in the provision. Management feels that the unallocated amount is appropriate and within the relevant range for the allowance that is reflective of the risk in the portfolio at September 30, 2021.

For the three months ended September 30, 2020	Beginning balance		Charge-offs			Recoveries		Provision			Ending Balance
Commercial & Agriculture	$	2,799	$	—		$	1	$	(139	)	$	2,661
Commercial Real Estate:
Owner Occupied		3,411		(147	)		6		685			3,955
Non-Owner Occupied		9,169		—			3		1,406			10,578
Residential Real Estate		2,434		(11	)		117		(83	)		2,457
Real Estate Construction		1,844		—			1		500			2,345
Farm Real Estate		361		—			3		(4	)		360
Consumer and Other		247		(27	)		21		(21	)		220
Unallocated		155		—			—		(94	)		61
Total	$	20,420	$	(185	)	$	152	$	2,250		$	22,637

For the three months ended September 30, 2020, the Company provided $2,250 to the allowance for loan losses. The provision was primarily the result of an increase in Civista’s qualitative factors, primarily changes in international, national, regional and local conditions, related to the economic shutdown driven by the ongoing COVID-19 pandemic, as well as the significant increase in classified assets during the quarter, particularly in the special mention category. Economic impacts from the COVID-19 pandemic during the three months ended September 30, 2020 included the loss of revenue experienced by our business clients, disruption of supply chains, additional employee costs for businesses due to the pandemic, higher unemployment rates throughout our footprint and a large number of customers requesting payment relief.

For the three months ended September 30, 2020, the allowance for Commercial & Agriculture loans decreased due to a decrease in general reserves required for this type as a result of a decrease in loan balances. The result was represented as a decrease in the provision. The allowance for Commercial Real Estate – Owner Occupied loans increased due to an increase in general reserves required for this type as a result of factors related to the COVID-19 pandemic, increased loan balances and loss rates and by increased classified and non-accrual loans. The result was represented as an increase in the provision. The allowance for Commercial Real Estate – Non-Owner Occupied loans increased due to an increase in general reserves required as a result of an increase in loan balances and by an increase in classified loans. This was represented as an increase in the provision. The allowance for Residential Real Estate loans increased due to an increase in recoveries for this type of loan. The result was represented by a decrease in the provision. The allowance for Real Estate Construction loans increased due to an increase in loss rates on classified loans, represented by an increase in the provision. Management determined that the unallocated amount was appropriate and within the relevant range for the allowance that was reflective of the risk in the portfolio at September 30, 2020.

For the nine months ended September 30, 2021	Beginning balance		Charge-offs			Recoveries		Provision			Ending Balance
Commercial & Agriculture	$	2,810	$	(15	)	$	164	$	(447	)	$	2,512
Commercial Real Estate:
Owner Occupied		4,057		—			6		353			4,416
Non-Owner Occupied		12,451		—			392		327			13,170
Residential Real Estate		2,484		(114	)		232		(6	)		2,596
Real Estate Construction		2,439		—			1		19			2,459
Farm Real Estate		338		—			9		(39	)		308
Consumer and Other		209		(19	)		54		(32	)		212
Unallocated		240		—			—		655			895
Total	$	25,028	$	(148	)	$	858	$	830		$	26,568

For the nine months ended September 30, 2021, the Company provided $830 to the allowance for loan losses, as compared to a provision of $7,862 for the nine months ended September 30, 2020. The decrease in the provision in the first nine months of 2021 as compared to the same period of 2020, was due to the stability of our credit quality metrics coupled with the stabilization and, in some cases, improvement of international, national, regional and local economic conditions that were adversely impacted by the 2020 economic shutdown and restrictions in response to the ongoing COVID-19 pandemic. While vaccinations in 2021 have created some level of optimism in the business community, there remains uncertainty due to the continued concern over increased infections from the Delta variant of COVID. We remain cautious given the level of classified loans in the portfolio, particularly loans to borrowers in the hotel industry as well as the challenges business face in today’s environment. Economic impacts related to the COVID-19 pandemic since March 2020 have included the loss of revenue experienced by our business clients, disruption of supply chains, additional employee costs for businesses due to the pandemic, higher unemployment rates throughout our footprint and a large number of customers requesting payment relief. While some of these pressures have eased, ongoing supply chain and staffing challenges, as well as the threat of inflation remain.

For the nine months ended September 30, 2021, the allowance for Commercial & Agriculture loans decreased due to a decrease in general reserves required for this type as a result of a decrease in loss rates. Commercial & Agriculture loan balances decreased during the period mainly from Civista’s participation in the PPP loan program. The result was represented as a decrease in the provision. The allowance for Commercial Real Estate – Owner Occupied loans increased due to an increase in general reserves required for this type as a result of increased loan balances, offset by decreases in classified loan balances. The result was represented as an increase in the provision. The allowance for Commercial Real Estate – Non-Owner Occupied loans increased due to an increase in general reserves required as a result of an increase in loan balances, offset by a decrease in classified loan balances and by a decrease in loss rates. This was represented as an increase in the provision. The allowance for Residential Real Estate loans increased due to an increase in recoveries for this type of loan. The result was represented by a decrease in the provision. The allowance for Real Estate Construction loans increased due to an increase in loan balances, represented by an increase in the provision. The allowance for Farm Real Estate loans decreased due to a decrease in general reserves required for this type as a result of decreased loan balances. The result was represented as a decrease in the provision. Management feels that the unallocated amount is appropriate and within the relevant range for the allowance that is reflective of the risk in the portfolio at September 30, 2021.

For the nine months ended September 30, 2020	Beginning balance		Charge-offs			Recoveries		Provision			Ending Balance
Commercial & Agriculture	$	2,219	$	(15	)	$	5	$	452		$	2,661
Commercial Real Estate:
Owner Occupied		2,541		(148	)		20		1,542			3,955
Non-Owner Occupied		6,584		—			44		3,950			10,578
Residential Real Estate		1,582		(108	)		196		787			2,457
Real Estate Construction		1,250		—			3		1,092			2,345
Farm Real Estate		344		—			10		6			360
Consumer and Other		247		(54	)		55		(28	)		220
Unallocated		—		—			—		61			61
Total	$	14,767	$	(325	)	$	333	$	7,862		$	22,637

For the nine months ended September 30, 2020, the Company provided $7,862 to the allowance for loan losses. The provision was primarily the result of an increase in Civista’s qualitative factors, primarily changes in international, national, regional and local conditions, related to the economic shutdown driven by the ongoing COVID-19 pandemic. Economic impacts related to the COVID-19 pandemic during the nine months ended September 30, 2020 included the loss of revenue experienced by our business clients, disruption of supply chains, additional employee costs for businesses due to the pandemic, higher unemployment rates throughout our footprint and a large number of customers requesting payment relief.

The allowance for Commercial & Agriculture loans increased due to an increase in general reserves required for this type as a result of an increase in loan balances mainly from Civista’s participation in the PPP loan program, offset by a decrease in loss rates, resulting in an increase in the provision. PPP loans are eligible for a 100% guaranty by the SBA. However, in the event of a loss resulting from a default on a PPP loan, and a determination by the SBA that there was a deficiency in the manner on which the PPP loan was originated or funded, the SBA may deny its liability under the guaranty. The reserve percentage for PPP loans is substantially less than the other loans in this segment resulting in an overall decrease in the reserve percentage. The allowance for Commercial Real Estate – Owner Occupied loans increased due to an increase in general reserves required for this type as a result of higher loan balances, an increase in classified and non-accrual loans and an increase in loss rates. The result was represented as an increase in the provision. The allowance for Commercial Real Estate – Non-Owner Occupied loans increased due to an increase in general reserves required as a result of an increase in loan balances, an increase in classified loans, offset by a decrease in loss rates. This was represented as an increase in the provision. The allowance for Residential Real Estate loans increased due to an increase in general reserves required for this type as a result of factors related to the COVID-19 pandemic, offset by a decrease in loan balances and loss rates, represented by an increase in the provision. The allowance for Real Estate Construction loans increased due to an increase in general reserves required as a result of an increase in loan balances and an increase in loss rates on classified loans, represented by an increase in the provision. The allowance for Farm Real Estate loans increased due to an increase in general reserves required as a result of an increase in loan balances. The result was represented as an increase in the provision. Management determined that the unallocated amount was appropriate and within the relevant range for the allowance that was reflective of the risk in the portfolio at September 30, 2020.

The following tables present, by portfolio segment, the allocation of the allowance for loan losses and related loan balances as of September 30, 2021 and December 31, 2020.

September 30, 2021	Loans acquired with credit deterioration		Loans individually evaluated for impairment		Loans collectively evaluated for impairment		Total
Allowance for loan losses:
Commercial & Agriculture	$	—	$	—	$	2,512	$	2,512
Commercial Real Estate:
Owner Occupied		—		55		4,361		4,416
Non-Owner Occupied		—		—		13,170		13,170
Residential Real Estate		—		18		2,578		2,596
Real Estate Construction		—		—		2,459		2,459
Farm Real Estate		—		—		308		308
Consumer and Other		—		—		212		212
Unallocated		—		—		895		895
Total	$	—	$	73	$	26,495	$	26,568
Outstanding loan balances:
Commercial & Agriculture	$	—	$	—	$	276,741	$	276,741
Commercial Real Estate:
Owner Occupied		—		205		292,520		292,725
Non-Owner Occupied		—		—		788,898		788,898
Residential Real Estate		296		545		423,712		424,553
Real Estate Construction		—		—		179,491		179,491
Farm Real Estate		—		522		29,625		30,147
Consumer and Other		—		—		12,259		12,259
Total	$	296	$	1,272	$	2,003,246	$	2,004,814

December 31, 2020	Loans acquired with credit deterioration		Loans individually evaluated for impairment		Loans collectively evaluated for impairment		Total
Allowance for loan losses:
Commercial & Agriculture	$	—	$	73	$	2,737	$	2,810
Commercial Real Estate:
Owner Occupied		—		5		4,052		4,057
Non-Owner Occupied		—		—		12,451		12,451
Residential Real Estate		—		29		2,455		2,484
Real Estate Construction		—		—		2,439		2,439
Farm Real Estate		—		—		338		338
Consumer and Other		—		—		209		209
Unallocated		—		—		240		240
Total	$	—	$	107	$	24,921	$	25,028
Outstanding loan balances:
Commercial & Agriculture	$	—	$	74	$	409,802	$	409,876
Commercial Real Estate:
Owner Occupied		—		980		277,433		278,413
Non-Owner Occupied		—		48		705,024		705,072
Residential Real Estate		388		946		441,254		442,588
Real Estate Construction		—		—		175,609		175,609
Farm Real Estate		—		618		32,484		33,102
Consumer and Other		—		—		12,842		12,842
Total	$	388	$	2,666	$	2,054,448	$	2,057,502

The following tables present credit exposures by internally assigned risk grades as of September 30, 2021 and December 31, 2020. The risk rating analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled or at all. The Company’s internal credit risk grading system is based on experiences with similarly graded loans.

Generally, Residential Real Estate, Real Estate Construction and Consumer and Other loans are not risk-graded, except when collateral is used for a business purpose. Only those loans that have been risk rated are included below.

September 30, 2021	Pass		Special Mention		Substandard		Doubtful		Ending Balance
Commercial & Agriculture	$	273,617	$	1,700	$	1,424	$	—	$	276,741
Commercial Real Estate:
Owner Occupied		279,409		5,120		8,196		—		292,725
Non-Owner Occupied		706,117		45,334		37,447		—		788,898
Residential Real Estate		75,337		266		4,387		—		79,990
Real Estate Construction		162,772		268		457		—		163,497
Farm Real Estate		28,711		206		1,230		—		30,147
Consumer and Other		913		—		21		—		934
Total	$	1,526,876	$	52,894	$	53,162	$	—	$	1,632,932

December 31, 2020	Pass		Special Mention		Substandard		Doubtful		Ending Balance
Commercial & Agriculture	$	401,636	$	4,472	$	3,768	$	—	$	409,876
Commercial Real Estate:
Owner Occupied		248,316		19,429		10,668		—		278,413
Non-Owner Occupied		604,909		58,270		41,893		—		705,072
Residential Real Estate		81,409		668		5,524		—		87,601
Real Estate Construction		158,207		962		492		—		159,661
Farm Real Estate		30,486		216		2,400		—		33,102
Consumer and Other		833		—		33		—		866
Total	$	1,525,796	$	84,017	$	64,778	$	—	$	1,674,591

The following tables present performing and nonperforming loans based solely on payment activity for the periods ended September 30, 2021 and December 31, 2020 that have not been assigned an internal risk grade. The types of loans presented here are not assigned a risk grade unless there is evidence of a problem. Payment activity is reviewed by management on a monthly basis to evaluate performance. Loans are considered to be nonperforming when they become 90 days past due and if management determines that we may not collect all of our principal and interest. Nonperforming loans also include certain loans that have been modified in Troubled Debt Restructurings (TDRs) where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. These concessions typically result from the Company’s loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions due to economic status. Certain TDRs are classified as nonperforming at the time of restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months.

The following tables include an aging analysis of the recorded investment of past due loans outstanding as of September 30, 2021 and December 31, 2020.

September 30, 2021	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater		Total Past Due		Current		Purchased Credit- Impaired Loans		Total Loans		Past Due 90 Days and Accruing
Commercial & Agriculture	$	400	$	—	$	—	$	400	$	276,341	$	—	$	276,741	$	—
Commercial Real Estate:
Owner Occupied		—		10		575		585		292,140		—		292,725		430
Non-Owner Occupied		—		—		4		4		788,894		—		788,898		—
Residential Real Estate		147		248		766		1,161		423,096		296		424,553		—
Real Estate Construction		—		—		—		—		179,491		—		179,491		—
Farm Real Estate		—		—		—		—		30,147		—		30,147		—
Consumer and Other		87		4		9		100		12,159		—		12,259		—
Total	$	634	$	262	$	1,354	$	2,250	$	2,002,268	$	296	$	2,004,814	$	430

December 31, 2020	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater		Total Past Due		Current		Purchased Credit- Impaired Loans		Total Loans		Past Due 90 Days and Accruing
Commercial & Agriculture	$	117	$	25	$	50	$	192	$	409,684	$	—	$	409,876	$	—
Commercial Real Estate:
Owner Occupied		—		4		102		106		278,307		—		278,413		—
Non-Owner Occupied		—		—		6		6		705,066		—		705,072		—
Residential Real Estate		1,059		867		1,314		3,240		438,960		388		442,588		—
Real Estate Construction		—		—		—		—		175,609		—		175,609		—
Farm Real Estate		—		—		4		4		33,098		—		33,102		—
Consumer and Other		59		1		16		76		12,766		—		12,842		—
Total	$	1,235	$	897	$	1,492	$	3,624	$	2,053,490	$	388	$	2,057,502	$	—

The following table presents loans on nonaccrual status, excluding purchased credit-impaired (PCI) loans, as of September 30, 2021 and December 31, 2020.

Nonaccrual Loans: Loans are considered for nonaccrual status upon reaching 90 days delinquency, unless the loan is well secured and in the process of collection, although the Company may be receiving partial payments of interest and partial repayments of principal on such loans. When a loan is placed on nonaccrual status, previously accrued but unpaid interest is deducted from interest income. Payments received on nonaccrual loans are applied to the unpaid principal balance. A loan may be returned to accruing status only if one of three conditions are met: the loan is well-secured and none of the principal and interest has been past due for a minimum of 90 days; the loan is a TDR and has made a minimum of six months payments; or the principal and interest payments are reasonably assured and a sustained period of performance has occurred, generally six months.

Modifications: A modification of a loan constitutes a TDR when the Company for economic or legal reasons related to a borrower’s financial difficulties grants a concession to the borrower that it would not otherwise consider. Exceptions to this policy exist for loan modifications granted as part of the Company’s COVID-19 deferral program, which allows the Company to not classify a modification so long as certain criteria as established in the CARES Act are met at the time of the modification. The Company offers various types of concessions when modifying a loan, however, forgiveness of principal is rarely granted. Commercial Real Estate loans modified in a TDR often involve reducing the interest rate lower than the current market rate for new debt with similar risk. Residential Real Estate loans modified in a TDR primarily involve interest rate reductions where monthly payments are lowered to accommodate the borrowers’ financial needs.

Loans modified in a TDR are typically already on non-accrual status and partial charge-offs have in some cases already been taken against the outstanding loan balance. As a result, loans modified in a TDR may have the financial effect of increasing the specific allowance associated with the loan. An allowance for impaired loans that have been modified in a TDR are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral, less any selling costs, if the loan is collateral dependent. Management exercises significant judgment in developing these estimates. As of September 30, 2021, TDRs accounted for $73 of the allowance for loan losses. As of December 31, 2020, TDRs accounted for $35 of the allowance for loan losses.

There were no loans modified as TDRs during the three-and nine-month periods ended September 30, 2021 or 2020.

Recidivism, or the borrower defaulting on its obligation pursuant to a modified loan, results in the loan once again becoming a non-accrual loan. Recidivism occurs at a notably higher rate than do defaults on new origination loans, so modified loans present a higher risk of loss than do new origination loans.

During the three- and nine-month periods ended September 30, 2021 and September 30, 2020, there were no defaults on loans that were modified and considered TDRs during the respective previous twelve months.

Impaired Loans: Larger (greater than $350) Commercial & Agricultural and Commercial Real Estate loan relationships, all TDRs and Residential Real Estate and Consumer loans that are part of a larger relationship are tested for impairment on a quarterly basis. These loans are analyzed to determine if it is probable that all amounts will not be collected according to the contractual terms of the loan agreement. If management determines that the value of the impaired loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through an allowance estimate or a charge-off to the allowance. The Company’s policy for recognizing interest income on impaired loans does not differ from its overall policy for interest recognition.

In the second quarter of 2020, in the initial days of the pandemic, Civista booked 90-day payment modifications on 813 loans with an aggregate principal balance outstanding of $431.3 million. Additional 90-day modifications were extended on 100 loans with an aggregate principal balance outstanding of $124.4 million. Both deferral programs primarily consisted of the deferral of principal and/or interest payments. All such modified loans were performing at December 31, 2019 and complied with the provisions of the CARES Act to not be considered a TDR.

As of September 30, 2021, Civista had 18 loans with an aggregate principal balance outstanding of $18,787 that remained on CARES Act modifications. Details with respect to loan modifications that remain on deferred status are as follows:


Type of Loan	Number of Loans		Balance		Percent of Loans Outstanding
			(In thousands)
Commercial & Agriculture		6	$	1,571		0.08	%
Commercial Real Estate:
Owner Occupied		2		2,591		0.13	%
Non-Owner Occupied		9		14,174		0.71	%
Real Estate Construction		1		451		0.02	%
Total		18	$	18,787		0.94	%

The following table includes the recorded investment and unpaid principal balances for impaired loans, excluding PCI loans, with the associated allowance amount, if applicable, as of September 30, 2021 and December 31, 2020.

	September 30, 2021						December 31, 2020
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:
Commercial Real Estate:
Owner Occupied	$	12	$	12			$	757	$	757
Non-Owner Occupied		—		—				48		48
Residential Real Estate		514		539				915		940
Farm Real Estate		522		522				618		618
Total		1,048		1,073				2,338		2,363
With an allowance recorded:
Commercial & Agriculture		—		—	$	—		74		74	$	73
Commercial Real Estate:
Owner Occupied		193		193		55		223		223		5
Residential Real Estate		31		34		18		31		35		29
Total		224		227		73		328		332		107
Total:
Commercial & Agriculture		—		—		—		74		74		73
Commercial Real Estate:
Owner Occupied		205		205		55		980		980		5
Non-Owner Occupied		—		—		—		48		48		—
Residential Real Estate		545		573		18		946		975		29
Farm Real Estate		522		522		—		618		618		—
Total	$	1,272	$	1,300	$	73	$	2,666	$	2,695	$	107

The following table includes the average recorded investment and interest income recognized for impaired financing receivables for the three- and nine-month periods ended September 30, 2021 and 2020.

	September 30, 2021				September 30, 2020
For the three months ended	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial Real Estate—Owner Occupied	$	252	$	4	$	391	$	7
Commercial Real Estate—Non-Owner Occupied		15		—		212		5
Residential Real Estate		551		8		1,175		10
Farm Real Estate		557		6		644		7
Total	$	1,375	$	18	$	2,422	$	29

	September 30, 2021				September 30, 2020
For the nine months ended	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial & Agriculture	$	19	$	—	$	92	$	4
Commercial Real Estate—Owner Occupied		449		15		406		21
Commercial Real Estate—Non-Owner Occupied		29		1		292		15
Residential Real Estate		654		24		1,464		34
Farm Real Estate		584		18		655		20
Total	$	1,735	$	58	$	2,909	$	94

Changes in the accretable yield for PCI loans were as follows, since acquisition:

The following table presents additional information regarding loans acquired and accounted for in accordance with ASC 310-30:

There was no allowance for loan losses recorded for acquired loans with or without specific evidence of deterioration in credit quality as of September 30, 2021 or December 31, 2020.

Foreclosed assets acquired in settlement of loans are carried at fair value less estimated costs to sell and are included in other assets on the Consolidated Balance Sheet. As of September 30, 2021, there were $26 of foreclosed assets included in Other assets. As of December 31, 2020, there were $31 of foreclosed assets included in Other assets. As of September 30, 2021 and December 31, 2020, the Company had initiated formal foreclosure procedures on $296 and $741, respectively, of consumer residential mortgages.