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LOANS RECEIVABLE AND THE ALLOWANCE FOR CREDIT LOSSES
 9 Months Ended
Sep. 30, 2020
Receivables [Abstract]  
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES LOANS RECEIVABLE AND THE ALLOWANCE FOR CREDIT LOSSES - LOANS
As a result of the adoption of Financial Instruments - Credit Losses (Topic 326), effective January 1, 2020, the Company changed the segmentation of its loan portfolio based on the common risk characteristics used to measure the allowance for credit losses.  The following table presents the loans receivable at September 30, 2020 and December 31, 2019 by class (dollars in thousands). The presentation of loans receivable at December 31, 2019 has been updated to conform to the loan portfolio segmentation that became effective on January 1, 2020.
 September 30, 2020December 31, 2019
 AmountPercent of TotalAmountPercent of Total
Commercial real estate:    
Owner-occupied$1,049,877 10.3 $980,021 10.5 %
Investment properties1,991,258 19.6 2,024,988 21.8 
Small balance CRE597,971 5.9 613,484 6.6 
Multifamily real estate426,659 4.2 388,388 4.2 
Construction, land and land development:
Commercial construction220,285 2.2 210,668 2.3 
Multifamily construction291,105 2.9 233,610 2.5 
One- to four-family construction518,085 5.1 544,308 5.8 
Land and land development240,803 2.4 245,530 2.6 
Commercial business:
Commercial business2,343,619 23.1 1,364,650 14.7 
Small business scored763,824 7.5 772,657 8.3 
Agricultural business, including secured by farmland
326,169 3.2 337,271 3.6 
One- to four-family residential771,431 7.6 925,531 9.9 
Consumer:
Consumer—home equity revolving lines of credit
504,523 4.9 519,336 5.6 
Consumer—other118,308 1.1 144,915 1.6 
Total loans10,163,917 100.0 9,305,357 100.0 %
Less allowance for credit losses - loans(167,965) (100,559) 
Net loans$9,995,952  $9,204,798  
The presentation of loans receivable at December 31, 2019 in the table below is based on loan segmentation as presented in the 2019 Form 10-K.
 December 31, 2019
 AmountPercent of Total
Commercial real estate:  
Owner-occupied$1,580,650 17.0 %
Investment properties2,309,221 24.8 
Multifamily real estate473,152 5.1 
Commercial construction210,668 2.3 
Multifamily construction233,610 2.5 
One- to four-family construction544,308 5.8 
Land and land development:
Residential154,688 1.7 
Commercial26,290 0.3 
Commercial business1,693,824 18.2 
Agricultural business, including secured by farmland
370,549 4.0 
One- to four-family residential945,622 10.2 
Consumer:
Consumer secured by one- to four-family
550,960 5.8 
Consumer—other211,815 2.3 
Total loans9,305,357 100.0 %
Less allowance for loan losses(100,559)
Net loans$9,204,798 

Loan amounts are net of unearned loan fees in excess of unamortized costs of $31.7 million as of September 30, 2020 and $438,000 as of December 31, 2019. Net loans include net discounts on acquired loans of $17.9 million and $25.0 million as of September 30, 2020 and December 31, 2019, respectively. Net loans does not include accrued interest receivable. Accrued interest receivable on loans was $39.2 million as of September 30, 2020 and $31.8 million as of December 31, 2019 and was reported in accrued interest receivable on the consolidated statements of financial condition.

Purchased credit-deteriorated and purchased non-credit-deteriorated loans. Loans acquired in business combinations are recorded at their fair value at the acquisition date. Acquired loans are evaluated upon acquisition and classified as either purchased credit-deteriorated (PCD) or purchased non-credit-deteriorated. There were no PCD loans acquired for the three and nine months ended September 30, 2020.
Purchased credit-impaired loans and purchased non-credit-impaired loans. Prior to the implementation of Financial Instruments—Credit Losses (Topic 326) on January 1, 2020, acquired loans were evaluated upon acquisition and classified as either PCI or purchased non-credit-impaired. PCI loans reflected credit deterioration since origination such that it was probable at acquisition that the Company would be unable to collect all contractually required payments. The outstanding contractual unpaid principal balance of PCI loans, excluding acquisition accounting adjustments, was $23.5 million at December 31, 2019. The carrying balance of PCI loans was $15.9 million at December 31, 2019. These loans were converted to PCD loans on January 1, 2020.
The following table presents the changes in the accretable yield for PCI loans for the three and nine months ended September 30, 2019 (in thousands):
Three Months Ended
September 30,		Nine Months Ended
September 30,
20192019
Balance, beginning of period$4,743 $5,216 
Accretion to interest income(423)(1,372)
Reclassifications from non-accretable difference11 487 
Balance, end of period$4,331 $4,331 

As of December 31, 2019, the non-accretable difference between the contractually required payments and cash flows expected to be collected was $7.4 million.
Impaired Loans and the Allowance for Loan Losses.  Prior to the implementation of Financial Instruments—Credit Losses (Topic 326) on January 1, 2020, a loan was considered impaired when, based on current information and circumstances, the Company determines it was probable that it would be unable to collect all amounts due according to the contractual terms of the loan agreement, including scheduled interest payments.  Factors involved in determining impairment included, but were not limited to, the financial condition of the borrower, the value of the underlying collateral and the status of the economy. Impaired loans were comprised of loans on nonaccrual, TDRs that were performing under their restructured terms, and loans that were 90 days or more past due, but were still on accrual. PCI loans were considered performing within the scope of the purchased credit-impaired accounting guidance and were not included in the impaired loan tables.
The following table provides information on impaired loans, excluding PCI loans, with and without allowance reserves at December 31, 2019. Recorded investment includes the unpaid principal balance or the carrying amount of loans less charge-offs and net deferred loan fees (in thousands):
December 31, 2019
Unpaid Principal BalanceRecorded InvestmentRelated Allowance
Without Allowance (1)
With Allowance (2)
Commercial real estate:
Owner-occupied$4,185 $3,816 $194 $18 
Investment properties3,536 1,883 690 40 
Multifamily real estate82 85 — — 
Multifamily construction573 98 — — 
One- to four-family construction1,799 1,799 — — 
Land and land development:
Residential676 340 — — 
Commercial business25,117 4,614 19,330 4,128 
Agricultural business/farmland3,044 661 2,243 141 
One- to four-family residential7,290 5,613 1,648 41 
Consumer:
Consumer secured by one- to four-family3,081 2,712 127 5 
Consumer—other222 159 52 1 
$49,605 $21,780 $24,284 $4,374 

(1)Includes loans without an allowance reserve that had been individually evaluated for impairment and that evaluation concluded that no reserve was needed, and $13.5 million of homogeneous and small balance loans, as of December 31, 2019, that were collectively evaluated for impairment for which a general reserve was established.
(2)Loans with a specific allowance reserve were individually evaluated for impairment using either a discounted cash flow analysis or, for collateral dependent loans, current appraisals less costs to sell to establish realizable value.

The following table summarizes our average recorded investment and interest income recognized on impaired loans by loan class for the three and nine months ended September 30, 2019 (in thousands):
Three Months Ended
September 30, 2019		Nine Months Ended
September 30, 2019
Average Recorded InvestmentInterest Income RecognizedAverage Recorded InvestmentInterest Income Recognized
Commercial real estate:
Owner-occupied$3,067 $— $3,197 $4 
Investment properties2,707 10 4,406 108 
Multifamily real estate58 — 19 — 
Commercial construction439 — 1,006 — 
One- to four-family construction1,489 11 1,138 12 
Land and land development:
Residential673 — 696 — 
Commercial business3,737 9 3,767 20 
Agricultural business/farmland3,250 25 4,319 81 
One- to four-family residential6,555 49 6,484 171 
Consumer:
Consumer secured by one- to four-family2,744 6 2,645 14 
Consumer—other387 1 359 3 
$25,106 $111 $28,036 $413 

Troubled Debt Restructurings. Loans are reported as TDRs when the bank grants one or more concessions to a borrower experiencing financial difficulties that it would not otherwise consider.  Our TDRs have generally not involved forgiveness of amounts due, but almost always include a modification of multiple factors; the most common combination includes interest rate, payment amount and maturity date.
As of September 30, 2020 and December 31, 2019, the Company had TDRs of $10.4 million and $8.0 million, respectively, and commitments to advance additional funds related to TDRs up to $1.3 million and none, respectively.

The following table presents new TDRs that occurred during the three and nine months ended September 30, 2020 and September 30, 2019 (dollars in thousands):
 Three Months Ended September 30, 2020Nine months ended September 30, 2020
 Number of
Contracts		Pre-modification Outstanding
Recorded Investment		Post-modification Outstanding
Recorded Investment		Number of
Contracts		Pre-
modification Outstanding
Recorded
 Investment		Post-
modification Outstanding
Recorded
Investment
Recorded Investment      
Commercial business:
Commercial business— $— $— 2 $4,796 $4,796 
Total— $— $— 2 $4,796 $4,796 
 Three Months Ended September 30, 2019Nine months ended September 30, 2019
 Number of
Contracts		Pre-modification Outstanding
Recorded Investment		Post-modification Outstanding
Recorded Investment		Number of
Contracts		Pre-
modification Outstanding
Recorded
Investment		Post-
modification Outstanding
Recorded
Investment
Recorded Investment       
Commercial real estate      
Investment properties
— $— $— 1 $1,090 $1,090 
Commercial business:
Commercial business— — — 1 160 160 
Agricultural business/farmland— — — 1 596 596 
 — $— $— 3 $1,846 $1,846 

There were no TDRs which incurred a payment default within twelve months of the restructure date during the three and nine-month periods ended September 30, 2020 and 2019. A default on a TDR results in either a transfer to nonaccrual status or a partial charge-off, or both.

Credit Quality Indicators:  To appropriately and effectively manage the ongoing credit quality of the Company’s loan portfolio, management has implemented a risk-rating or loan grading system for its loans.  The system is a tool to evaluate portfolio asset quality throughout each applicable loan’s life as an asset of the Company.  Generally, loans are risk rated on an aggregate borrower/relationship basis with individual loans sharing similar ratings.  There are some instances when specific situations relating to individual loans will provide the basis for different risk ratings within the aggregate relationship.  Loans are graded on a scale of 1 to 9.  A description of the general characteristics of these categories is shown below:

Overall Risk Rating Definitions:  Risk-ratings contain both qualitative and quantitative measurements and take into account the financial strength of a borrower and the structure of the loan or lease.  Consequently, the definitions are to be applied in the context of each lending transaction and judgment must also be used to determine the appropriate risk rating, as it is not unusual for a loan or lease to exhibit characteristics of more than one risk-rating category.  Consideration for the final rating is centered in the borrower’s ability to repay, in a timely fashion, both principal and interest.  The Company’s risk-rating and loan grading policies are reviewed and approved annually. There were no material changes in the risk-rating or loan grading system for the periods presented.

Risk Ratings 1-5: Pass
Credits with risk ratings of 1 to 5 meet the definition of a pass risk rating. The strength of credits vary within the pass risk ratings, ranging from a risk rated 1 being an exceptional credit to a risk rated 5 being an acceptable credit that requires a more than normal level of supervision.

Risk Rating 6: Special Mention
A credit with potential weaknesses that deserves management’s close attention is risk rated a 6.  If left uncorrected, these potential weaknesses will result in deterioration in the capacity to repay debt.  A key distinction between Special Mention and Substandard is that in a Special Mention credit, there are identified weaknesses that pose potential risk(s) to the repayment sources, versus well defined weaknesses that pose risk(s) to the repayment sources.  Assets in this category are expected to be in this category no more than 9-12 months as the potential weaknesses in the credit are resolved.
Risk Rating 7: Substandard
A credit with well defined weaknesses that jeopardize the ability to repay in full is risk rated a 7.  These credits are inadequately protected by either the sound net worth and payment capacity of the borrower or the value of pledged collateral.  These are credits with a distinct possibility of loss.  Loans headed for foreclosure and/or legal action due to deterioration are rated 7 or worse.

Risk Rating 8: Doubtful
A credit with an extremely high probability of loss is risk rated 8.  These credits have all the same critical weaknesses that are found in a substandard loan; however, the weaknesses are elevated to the point that based upon current information, collection or liquidation in full is improbable.  While some loss on doubtful credits is expected, pending events may make the amount and timing of any loss indeterminable.  In these situations taking the loss is inappropriate until the outcome of the pending event is clear.

Risk Rating 9: Loss
A credit that is considered to be currently uncollectible or of such little value that it is no longer a viable bank asset is risk rated 9.  Losses should be taken in the accounting period in which the credit is determined to be uncollectible.  Taking a loss does not mean that a credit has absolutely no recovery or salvage value but, rather, it is not practical or desirable to defer writing off the credit, even though partial recovery may occur in the future.
The following tables present the Company’s portfolio of risk-rated loans by grade as of September 30, 2020 (in thousands). Revolving loans that are converted to term loans are treated as new originations in the table below and are presented by year of origination.
September 30, 2020
Term Loans by Year of OriginationRevolving LoansTotal Loans
By class:20202019201820172016Prior
Commercial real estate - owner occupied
Risk Rating
Pass$184,182 $166,817 $165,634 $124,766 $93,179 $228,160 $3,159 $965,897 
Special Mention— — 1,369 2,285 — 1,616 149 5,419 
Substandard5,661 24,638 1,670 2,443 14,055 30,094 — 78,561 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total Commercial real estate - owner occupied$189,843 $191,455 $168,673 $129,494 $107,234 $259,870 $3,308 $1,049,877 
Commercial real estate - investment properties
Risk Rating
Pass$190,298 $267,544 $309,233 $212,385 $281,543 $523,930 $21,201 $1,806,134 
Special Mention— 2,153 — — 3,377 4,444 — 9,974 
Substandard12,652 10,245 23,729 59,100 26,502 38,421 4,501 175,150 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total Commercial real estate - investment properties$202,950 $279,942 $332,962 $271,485 $311,422 $566,795 $25,702 $1,991,258 
Multifamily real estate
Risk Rating
Pass$62,552 $68,649 $39,634 $106,938 $45,049 $102,426 $1,411 $426,659 
Special Mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total Multifamily real estate$62,552 $68,649 $39,634 $106,938 $45,049 $102,426 $1,411 $426,659 
September 30, 2020
Term Loans by Year of OriginationRevolving LoansTotal Loans
By class:20202019201820172016Prior
Commercial construction
Risk Rating
Pass$38,631 $106,658 $43,010 $6,102 $2,183 $1,143 $— $197,727 
Special Mention698 — — — — — — 698 
Substandard11,899 3,548 4,868 1,447 98 — — 21,860 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total Commercial construction$51,228 $110,206 $47,878 $7,549 $2,281 $1,143 $— $220,285 
Multifamily construction
Risk Rating
Pass$62,271 $144,695 $69,367 $14,772 $— $— $— $291,105 
Special Mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total Multifamily construction$62,271 $144,695 $69,367 $14,772 $— $— $— $291,105 
One- to four- family construction
Risk Rating
Pass$404,805 $87,377 $— $— $— $— $12,058 $504,240 
Special Mention9,121 623 — — — — 630 10,374 
Substandard3,139 332 — — — — — 3,471 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total One- to four- family construction$417,065 $88,332 $— $— $— $— $12,688 $518,085 
September 30, 2020
Term Loans by Year of OriginationRevolving LoansTotal Loans
By class:20202019201820172016Prior
Land and land development
Risk Rating
Pass$113,268 $65,773 $22,930 $7,930 $6,773 $5,404 $15,137 $237,215 
Special Mention— — — — — — — — 
Substandard14 31 3,050 191 — 302 — 3,588 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total Land and land development$113,282 $65,804 $25,980 $8,121 $6,773 $5,706 $15,137 $240,803 
Commercial business
Risk Rating
Pass$1,304,667 $263,730 $217,169 $81,266 $42,319 $78,112 $256,590 $2,243,853 
Special Mention2,071 502 8,786 834 — 43 1,142 13,378 
Substandard9,193 11,780 22,307 6,080 1,228 463 35,337 86,388 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total Commercial business$1,315,931 $276,012 $248,262 $88,180 $43,547 $78,618 $293,069 $2,343,619 
Agricultural business including secured by farmland
Risk Rating
Pass$27,358 $60,931 $32,786 $24,415 $24,473 $30,603 $113,813 $314,379 
Special Mention— — — 810 — 537 — 1,347 
Substandard1,548 3,016 901 332 676 1,581 2,389 10,443 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total Agricultural business including secured by farmland$28,906 $63,947 $33,687 $25,557 $25,149 $32,721 $116,202 $326,169 
The following table presents the Company’s portfolio of non-risk-rated loans by delinquency status as of September 30, 2020 (in thousands). Revolving loans that are converted to term loans are treated as new originations in the table below and are presented by year of origination.
September 30, 2020
Term Loans by Year of OriginationRevolving LoansTotal Loans
By class:20202019201820172016Prior
Small balance CRE
Past Due Category
Current$42,396 $81,636 $89,270 $78,727 $75,123 $225,523 $2,864 $595,539 
30-59 Days Past Due— 241 — — — 369 — 610 
60-89 Days Past Due— — — 622 — — — 622 
90 Days + Past Due— — — 185 — 1,015 — 1,200 
Total Small balance CRE$42,396 $81,877 $89,270 $79,534 $75,123 $226,907 $2,864 $597,971 
Small business scored
Past Due Category
Current$128,596 $154,666 $138,279 $100,654 $51,378 $70,986 $113,452 $758,011 
30-59 Days Past Due844 400 207 643 2 240 155 2,491 
60-89 Days Past Due224 35 767 63 — 151 58 1,298 
90 Days + Past Due85 106 588 713 172 250 110 2,024 
Total Small business scored$129,749 $155,207 $139,841 $102,073 $51,552 $71,627 $113,775 $763,824 
One- to four- family residential
Past Due Category
Current$68,277 $100,406 $105,335 $124,930 $65,906 $297,086 $3,880 $765,820 
30-59 Days Past Due— 35 — — — 195 — 230 
60-89 Days Past Due299 2 241 480 — 727 — 1,749 
90 Days + Past Due— — 1,012 512 — 2,108 — 3,632 
Total One- to four- family residential$68,576 $100,443 $106,588 $125,922 $65,906 $300,116 $3,880 $771,431 
September 30, 2020
Term Loans by Year of OriginationRevolving LoansTotal Loans
By class:20202019201820172016Prior
Consumer—home equity revolving lines of credit
Past Due Category
Current$12,696 $1,983 $2,515 $3,176 $1,665 $2,945 $476,385 $501,365 
30-59 Days Past Due— — — 44 — 84 745 873 
60-89 Days Past Due— — — — — 14 201 215 
90 Days + Past Due— 100 54 564 329 321 702 2,070 
Total Consumer—home equity revolving lines of credit$12,696 $2,083 $2,569 $3,784 $1,994 $3,364 $478,033 $504,523 
Consumer-other
Past Due Category
Current$15,111 $16,716 $16,158 $13,500 $10,013 $20,774 $25,571 $117,843 
30-59 Days Past Due18 23 2 5 37 35 63 183 
60-89 Days Past Due44 33 — 148 — 2 26 253 
90 Days + Past Due— — 24 — 5 — — 29 
Total Consumer-other$15,173 $16,772 $16,184 $13,653 $10,055 $20,811 $25,660 $118,308 
The following table presents the Company’s portfolio of risk-rated loans and non-risk-rated loans by grade or other characteristics as of December 31, 2019 (in thousands):
December 31, 2019
By class:
Pass (Risk Ratings 1-5)(1)
Special MentionSubstandardDoubtfulLossTotal Loans
Commercial real estate:
Owner-occupied
$1,546,649 $4,198 $29,803 $— $— $1,580,650 
Investment properties
2,288,785 2,193 18,243 — — 2,309,221 
Multifamily real estate472,856 — 296 — — 473,152 
Commercial construction198,986 — 11,682 — — 210,668 
Multifamily construction233,610 — — — — 233,610 
One- to four-family construction530,307 12,534 1,467 — — 544,308 
Land and land development:
Residential
154,348 — 340 — — 154,688 
Commercial
26,256 — 34 — — 26,290 
Commercial business1,627,170 31,012 35,584 58 — 1,693,824 
Agricultural business, including secured by farmland352,408 10,840 7,301 — — 370,549 
One- to four-family residential940,424 409 4,789 — — 945,622 
Consumer:
Consumer secured by one- to four-family
547,388 — 3,572 — — 550,960 
Consumer—other
211,475 3 337 — — 211,815 
Total$9,130,662 $61,189 $113,448 $58 $— $9,305,357 

(1)The Pass category includes some performing loans that are part of homogenous pools which are not individually risk-rated.  This includes all consumer loans, all one- to four-family residential loans and, as of December 31, 2019, in the commercial business category, $764.6 million of credit-scored small business loans.  As loans in these pools become non-performing, they are individually risk-rated.
The following table provides the amortized cost basis of collateral-dependent loans as of September 30, 2020 (in thousands). Our collateral dependent loans presented in the table below have no significant concentrations by property type or location. The table below includes one commercial business banking relationship with a balance of $6.6 million.
 September 30, 2020
Real EstateAccounts ReceivableEquipmentInventoryTotal
Commercial real estate:  
Owner-occupied$1,101 $— $— $— $1,101 
Investment properties3,914 — — — 3,914 
Small Balance CRE1,206 — — — 1,206 
Land and land development302 — — — 302 
Commercial business
Commercial business2,536 2,756 2,970 652 8,914 
Small business Scored46 — 48 — 94 
Agricultural business, including secured by farmland
427 — 994 — 1,421 
One- to four-family residential195 — — — 195 
Total$9,727 $2,756 $4,012 $652 $17,147 
The following tables provide additional detail on the age analysis of the Company’s past due loans as of September 30, 2020 and December 31, 2019 (in thousands):
 September 30, 2020
 30-59 Days
Past Due		60-89 Days
Past Due		90 Days or More
Past Due		Total
Past Due		CurrentTotal LoansNon-accrual with no Allowance
Total Non-accrual (1)
Loans 90 Days or More Past Due and Accruing
Commercial real estate:       
Owner-occupied$100 $— $1,687 $1,787 $1,048,090 $1,049,877 $1,101 $2,067 $— 
Investment properties5,902 98 2,919 8,919 1,982,339 1,991,258 3,914 3,914 — 
Small Balance CRE610 622 1,200 2,432 595,539 597,971 1,206 1,843 — 
Multifamily real estate— — — — 426,659 426,659 — — — 
Construction, land and land development:
Commercial construction— — 99 99 220,186 220,285 — 98 — 
Multifamily construction— — — — 291,105 291,105 — — — 
One- to four-family construction441 422 — 863 517,222 518,085 — 331 — 
Land and land development— — 508 508 240,295 240,803 302 508 — 
Commercial business
Commercial business485 3,640 1,661 5,786 2,337,833 2,343,619 7,468 12,143 225 
Small business scored2,491 1,298 2,024 5,813 758,011 763,824 93 2,724 200 
Agricultural business, including secured by farmland
— — 2,023 2,023 324,146 326,169 1,422 2,066 — 
One- to four-family residential230 1,749 3,632 5,611 765,820 771,431 181 2,978 2,649 
Consumer:
Consumer—home equity revolving lines of credit873 215 2,070 3,158 501,365 504,523 — 2,835 175 
Consumer—other183 253 29 465 117,843 118,308 — 61 6 
Total$11,315 $8,297 $17,852 $37,464 $10,126,453 $10,163,917 $15,687 $31,568 $3,255 
 December 31, 2019
 30-59 Days
Past Due		60-89 Days
Past Due		90 Days or More
Past Due		Total
Past Due		Purchased Credit-ImpairedCurrentTotal LoansLoans 90 Days or More Past Due and Accruing
Total Non-accrual (1)
Commercial real estate:       
Owner-occupied$486 $1,246 $2,889 $4,621 $8,578 $1,567,451 $1,580,650 $89 $4,069 
Investment properties— 260 1,883 2,143 6,345 2,300,733 2,309,221 — 1,883 
Multifamily real estate239 91 — 330 7 472,815 473,152 — 85 
Commercial construction1,397 — 98 1,495 — 209,173 210,668 — 98 
Multifamily construction— — — — — 233,610 233,610 — — 
One-to-four-family construction3,212 — 1,799 5,011 — 539,297 544,308 332 1,467 
Land and land development:       
Residential— — 340 340 — 154,348 154,688 — 340 
Commercial— — — — — 26,290 26,290 — — 
Commercial business2,343 1,583 3,412 7,338 368 1,686,118 1,693,824 401 23,015 
Agricultural business, including secured by farmland
1,972 129 584 2,685 393 367,471 370,549 — 661 
One-to four-family residential3,777 1,088 2,876 7,741 74 937,807 945,622 877 3,410 
Consumer:
Consumer secured by one- to four-family1,174 327 1,846 3,347 110 547,503 550,960 398 2,314 
Consumer—other350 161 — 511 63 211,241 211,815 — 159 
Total$14,950 $4,885 $15,727 $35,562 $15,938 $9,253,857 $9,305,357 $2,097 $37,501 

(1)     The Company did not recognize any interest income on non-accrual loans during both the nine months ended September 30, 2020 and the year ended December 31, 2019.
The following tables provide the activity in the allowance for credit losses by portfolio segment for the three and nine months ended September 30, 2020 (in thousands):
 For the Three Months Ended September 30, 2020
 Commercial
Real Estate		Multifamily
Real Estate		Construction and LandCommercial BusinessAgricultural BusinessOne- to Four-Family ResidentialConsumerUnallocatedTotal
Allowance for credit losses:        
Beginning balance$53,166 $3,504 $36,916 $33,870 $4,517 $12,746 $11,633 $— $156,352 
Provision/(recapture) for credit losses6,895 (248)2,561 2,550 1,026 100 757 — 13,641 
Recoveries23 — — 246 — 94 82 — 445 
Charge-offs(379)— — (1,297)(492)(72)(233)— (2,473)
Ending balance$59,705 $3,256 $39,477 $35,369 $5,051 $12,868 $12,239 $— $167,965 
For the Nine Months Ended September 30, 2020
 Commercial
Real Estate		Multifamily
Real Estate		Construction and LandCommercial
Business		Agricultural
Business		One- to Four-Family ResidentialConsumerUnallocatedTotal
Allowance for credit losses:        
Beginning balance$30,591 $4,754 $22,994 $23,370 $4,120 $4,136 $8,202 $2,392 $100,559 
Impact of Adopting ASC 326(2,864)(2,204)2,515 3,010 (351)7,125 2,973 (2,392)7,812 
Provision for credit losses32,213 772 13,963 14,402 64 1,470 1,994 — 64,878 
Recoveries244 — 105 821 1,772 273 238 — 3,453 
Charge-offs(479)(66)(100)(6,234)(554)(136)(1,168)— (8,737)
Ending balance$59,705 $3,256 $39,477 $35,369 $5,051 $12,868 $12,239 $— $167,965 

The changes in the allowance for credit losses during the three and nine months ended September 30, 2020 were primarily the result of the $13.6 million provision for credit losses recorded during the current quarter and the $64.9 million provision recording during the nine months ended September 30, 2020, mostly due to the deterioration in the economy during the current quarter and nine months ended September 30, 2020 as a result of the COVID-19 pandemic, as well as forecasted additional economic deterioration based on the reasonable and supportable economic forecast as of September 30, 2020. The current quarter provision for credit losses also reflects risk rating downgrades on loans that are considered at heightened risk due to the COVID-19 pandemic. In addition, the change for the nine months ended September 30, 2020 included a $7.8 million increase related to the adoption of Financial Instruments - Credit Losses (Topic 326).
The following tables provide additional information on the allowance for loan losses and loan balances individually and collectively evaluated for impairment at or for the three and nine months ended September 30, 2019 (in thousands):
 For the Three Months Ended September 30, 2019
 Commercial
 Real Estate		Multifamily
Real Estate		Construction and LandCommercial BusinessAgricultural BusinessOne- to Four-Family ResidentialConsumerUnallocatedTotal
Allowance for loan losses:         
Beginning balance$26,730 $4,344 $23,554 $19,557 $3,691 $4,701 $8,452 $7,225 $98,254 
Provision/(recapture) for loan losses1,992 (61)(1,141)3,027 943 (175)258 (2,843)2,000 
Recoveries107 — 156 162 2 129 154 — 710 
Charge-offs(314)— — (1,599)(741)(86)(423)— (3,163)
Ending balance$28,515 $4,283 $22,569 $21,147 $3,895 $4,569 $8,441 $4,382 $97,801 
 For the Nine Months Ended September 30, 2019
 Commercial
 Real Estate		Multifamily
Real Estate		Construction and LandCommercial
Business		Agricultural
Business		One- to Four-Family ResidentialConsumerUnallocatedTotal
Allowance for loan losses:         
Beginning balance$27,132 $3,818 $24,442 $19,438 $3,778 $4,714 $7,972 $5,191 $96,485 
Provision/(recapture) for loan losses2,244 465 (2,081)4,300 987 (461)1,355 (809)6,000 
Recoveries277 — 208 400 37 402 487 — 1,811 
Charge-offs(1,138)— — (2,991)(907)(86)(1,373)— (6,495)
Ending balance$28,515 $4,283 $22,569 $21,147 $3,895 $4,569 $8,441 $4,382 $97,801 
 September 30, 2019
 Commercial
Real Estate		Multifamily
Real Estate		Construction and LandCommercial BusinessAgricultural BusinessOne- to Four-Family ResidentialConsumerUnallocatedTotal
Allowance for loan losses:
Individually evaluated for impairment
$60 $— $— $48 $132 $42 $6 $— $288 
Collectively evaluated for impairment
28,455 4,283 22,569 21,078 3,710 4,527 8,435 4,382 97,439 
Purchased credit-impaired loans
— — — 21 53 — — — 74 
Total allowance for loan losses$28,515 $4,283 $22,569 $21,147 $3,895 $4,569 $8,441 $4,382 $97,801 
Loan balances:         
Individually evaluated for impairment
$4,246 $— $1,220 $618 $2,282 $3,745 $241 $— $12,352 
Collectively evaluated for impairment
3,598,482 399,808 1,083,083 1,618,366 387,827 943,653 779,222 — 8,810,441 
Purchased credit impaired loans
11,513 6 — 407 396 77 176 — 12,575 
Total loans$3,614,241 $399,814 $1,084,303 $1,619,391 $390,505 $947,475 $779,639 $— $8,835,368