Business loans secured by real estate are loans to businesses that are collateralized by real estate where the operating cash flow of the business is the primary source of repayment. This loan portfolio includes CRE owner-occupied, franchise loans secured by real estate, and SBA loans secured by real estate, which are collateralized by real property other than hotel/motel real property.


	March 31,		December 31,
	2021		2020
	(Dollars in thousands)
Investor loans secured by real estate
CRE non-owner-occupied	$	2,729,785	$	2,675,085
Multifamily	5,309,592		5,171,356
Construction and land	316,458		321,993
SBA secured by real estate	56,381		57,331
Total investor loans secured by real estate	8,412,216		8,225,765
Business loans secured by real estate
CRE owner-occupied	2,029,984		2,114,050
Franchise real estate secured	340,805		347,932
SBA secured by real estate	73,967		79,595
Total business loans secured by real estate	2,444,756		2,541,577
Commercial loans
Commercial and industrial	1,656,098		1,768,834
Franchise non-real estate secured	399,041		444,797
SBA non-real estate secured	14,908		15,957

Total commercial loans	2,070,047		2,229,588
Retail loans
Single family residential	184,049		232,574
Consumer	6,324		6,929
Total retail loans	190,373		239,503
Gross loans held for investment (1)	13,117,392		13,236,433
Allowance for credit losses for loans held for investment	(266,999)		(268,018)
Loans held for investment, net	$	12,850,393	$	12,968,415

Loans held for sale, at lower of cost or fair value	$	7,311	$	601

The Company generally retains the servicing rights of the guaranteed portion of SBA loans sold, for which the Company records a servicing asset at fair value within its other assets category. Servicing assets are subsequently measured using the amortization method and amortized to noninterest income. Servicing assets are evaluated for impairment based on the fair value of the assets as compared to carrying amount. At March 31, 2021 and December 31, 2020, the servicing asset totaled $4.6 million and $5.3 million, respectively, and was included in other assets in the Company’s consolidated statement of financial condition. Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to the carrying amount. Impairment is recognized through a valuation allowance, to the extent the fair value is less than the carrying amount. At March 31, 2021 and December 31, 2020, the Company determined that no valuation allowance was necessary.

Opus entered into securitization sales on December 23, 2016 with the Federal Home Loan Mortgage Corporation (“Freddie Mac”). The transaction involved the sale of $509 million in originated multifamily loans through a Freddie Mac-sponsored transaction. One class of Freddie Mac guaranteed structured pass-through certificates was issued and purchased entirely by Opus. In connection with the Opus acquisition, the Company's continuing involvement includes sub-servicing responsibilities, general representations and warranties, and reimbursement obligations. Servicing responsibilities on loan sales generally include obligations to collect and remit payments of principal and interest, provide foreclosure services, manage payments of taxes and insurance premiums, and otherwise administer the underlying loans. In connection with the securitization transaction, Freddie Mac was designated as the master servicer and appointed the Company to perform sub-servicing responsibilities, which generally include the servicing responsibilities described above with the exception of the servicing of foreclosed or defaulted loans. The overall management, servicing, and resolution of defaulted loans and foreclosed loans are separately designated to the special servicer, a third-party institution that is independent of the master servicer and the Company. The master servicer has the right to terminate the Company in its role as sub-servicer and direct such responsibilities accordingly.

General representations and warranties associated with loan sales and securitization sales require the Company to uphold various assertions that pertain to the underlying loans at the time of the transaction, including, but not limited to, compliance with relevant laws and regulations, absence of fraud, enforcement of liens, no environmental damages, and maintenance of relevant environmental insurance. Such representations and warranties are limited to those that do not meet the quality represented at the transaction date and do not pertain to a decline in value or future payment defaults. In circumstances where the Company breaches its representations and warranties, the Company would generally be required to cure such instances through a repurchase or substitution of the subject

To the extent the ultimate resolution of defaulted loans results in contractual principal and interest payments that are deficient, the Company is obligated to reimburse Freddie Mac for such amounts, not to exceed 10% of the original principal amount of the loans comprising the securitization pool at the closing date of December 23, 2016. The liability recorded for Company’s exposure to the reimbursement agreement with Freddie Mac was $448,000 as of March 31, 2021 and December 31, 2020.

Loans sold and serviced for others are not included in the accompanying consolidated statements of financial condition. The unpaid principal balance of loans and participations serviced for others were $637.4 million at March 31, 2021 and $686.0 million at December 31, 2020. Included within the balances were loans transferred through securitization with Freddie Mac of $95.5 million and SBA participations serviced for others of $398.2 million at March 31, 2021, and loans transferred through securitization with Freddie Mac of $99.4 million and SBA participations serviced for others of $421.7 million at December 31, 2020.

As of March 31, 2021, the Company’s loan portfolio was primarily collateralized by various forms of real estate and business assets located predominately in California. The Company’s loan portfolio contains concentrations of credit in multifamily real estate, commercial non-owner-occupied real estate, commercial owner-occupied real estate loans, and commercial and industrial business loans. The Bank maintains policies approved by the Bank’s Board of Directors (the “Bank Board”) that address these concentrations and diversifies its loan portfolio through loan originations, purchases, and sales to meet approved concentration levels. While management believes that the collateral presently securing these loans is adequate, there can be no assurances that a significant deterioration in the California real estate market or economy would not expose the Company to significantly greater credit risk.

Under applicable laws and regulations, the Bank may not make secured loans to one borrower in excess of 25% of the Bank’s unimpaired capital plus surplus and likewise in excess of 15% of the Bank’s unimpaired capital plus surplus for unsecured loans. These loans-to-one borrower limitations result in a dollar limitation of $812.9 million for secured loans and $487.8 million for unsecured loans at March 31, 2021. In order to manage concentration risk, the Bank maintains a house lending limit well below these statutory maximums. At March 31, 2021, the Bank’s largest aggregate outstanding balance of loans to one borrower was $184.2 million secured by multifamily properties.

The Company’s credit quality and credit risk are controlled in two areas. The first is the loan origination process, wherein the Bank underwrites credit and chooses which types and levels of risk it is willing to accept. The Company maintains a credit policy which addresses many related topics, sets forth maximum tolerances for key elements of loan risk, and indicates appropriate protocols for identifying and analyzing these risk elements. The policy sets forth specific guidelines for analyzing each of the loan products the Company offers from both an individual and portfolio-wide basis. The credit policy is reviewed annually by the Bank Board. The Bank’s underwriters ensure all key risk factors are analyzed with nearly all underwriting including a global cash flow analysis of the prospective borrowers.

The second area is in the ongoing oversight of the loan portfolio, where existing credit risk is measured and monitored, and where performance issues are dealt with in a timely and appropriate fashion. Credit risk is monitored and managed within the loan portfolio by the Company’s portfolio managers based on both the credit policy and a credit and portfolio review policy. This latter policy requires a program of financial data collection and analysis, thorough loan reviews, property and/or business inspections, monitoring of portfolio concentrations and trends, and incorporation of current business and economic conditions. The portfolio managers also monitor asset-based lines of credit, loan covenants, and other conditions associated with the Company’s business loans as a means to help identify potential credit risk. Most individual loans, excluding the homogeneous loan portfolio, are reviewed at least annually, including the assignment or confirmation of a risk grade

Risk grades are based on a six-grade Pass scale, along with Special Mention, Substandard, Doubtful, and Loss classifications, as such classifications are defined by the regulatory agencies. The assignment of risk grades allows the Company to, among other things, identify the risk associated with each credit in the portfolio and to provide a basis for estimating credit losses inherent in the portfolio. Risk grades are reviewed regularly with the Company’s Credit and Portfolio Review Committee, and the portfolio management and risk grading process is

The Bank’s portfolio managers also manage loan performance risks, collections, workouts, bankruptcies, and foreclosures. A special department, whose portfolio managers have professional expertise in these areas, typically handles or advises on these types of matters. Loan performance risks are mitigated by our portfolio managers acting promptly and assertively to address problem credits when they are identified. Collection efforts commence immediately upon non-payment, and the portfolio managers seek to promptly determine the appropriate steps to minimize the Company’s risk of loss. When foreclosure will maximize the Company’s recovery for a non-performing loan, the portfolio managers will take appropriate action to initiate the foreclosure process.

When a loan is graded as special mention, substandard, or doubtful, the Company obtains an updated valuation of the underlying collateral. If, through the Company’s credit risk management process, it is determined the ultimate repayment of a loan will come from the foreclosure upon and ultimate sale of the underlying collateral, the loan is deemed collateral dependent and evaluated individually to determine an appropriate ACL for the loan. The ACL for such loans is measured as the amount by which the fair value of the underlying collateral, less estimated costs to sell, is less than the amortized cost of the loan. The Company typically continues to obtain or confirm updated valuations of underlying collateral for special mention and classified loans on an annual or biennial basis in order to have the most current indication of fair value of the underlying collateral securing the loan. Additionally, once a loan is identified as collateral dependent, due to the likelihood of foreclosure, and repayment of the loan is expected to come from the eventual sale of the underlying collateral, an analysis of the underlying collateral is performed at least quarterly. Changes in the estimated fair value of the collateral are reflected in the lifetime ACL for the loan. Balances deemed to be uncollectable are promptly charged-off.


	Term Loans by Vintage
	2021		2020		2019		2018		2017		Prior		Revolving		Revolving Converted to Term During the Period		Total
March 31, 2021	(Dollars in thousands)
Investor loans secured by real estate
CRE non-owner-occupied
Pass	$	124,225	$	272,001	$	501,036	$	482,052	$	278,439	$	972,783	$	10,779	$	—	$	2,641,315
Special mention	—		—		2,004		8,619		438		43,694		—		—		54,755
Substandard	—		—		25,740		1,856		—		5,571		548		—		33,715

Multifamily
Pass	405,022		1,005,928		1,626,859		791,365		629,525		834,458		1,426		—		5,294,583
Special mention	—		—		1,755		2,629		—		9,294		—		—		13,678
Substandard	—		—		—		—		559		772		—		—		1,331

Construction and land
Pass	12,496		76,486		133,997		53,795		12,264		26,377		1,043		—		316,458



SBA secured by real estate
Pass	—		—		7,409		8,991		15,383		12,485		—		—		44,268
Special mention	—		498		1,033		1,161		1,002		1,124		—		—		4,818
Substandard	—		—		1,168		2,365		1,091		2,671		—		—		7,295

Total investor loans secured by real estate	541,743		1,354,913		2,301,001		1,352,833		938,701		1,909,229		13,796		—		8,412,216
Business loans secured by real estate
CRE owner-occupied
Pass	108,753		283,401		373,667		280,703		304,938		638,844		8,946		—		1,999,252
Special mention	—		2,190		—		3,792		3,045		4,319		—		—		13,346
Substandard	—		—		—		4,143		5,884		7,109		250		—		17,386

Franchise real estate secured
Pass	23,192		43,635		71,269		62,905		81,819		52,837		—		—		335,657
Special mention	—		878		1,650		2,620		—		—		—		—		5,148


SBA secured by real estate
Pass	510		3,237		7,587		12,262		13,155		27,937		—		—		64,688
Special mention	—		—		—		1,186		—		1,175		—		—		2,361
Substandard	—		—		—		161		2,111		4,646		—		—		6,918

Total loans secured by business real estate	132,455		333,341		454,173		367,772		410,952		736,867		9,196		—		2,444,756


	Term Loans by Vintage
	2020		2019		2018		2017		2016		Prior		Revolving		Revolving Converted to Term During the Period		Total
December 31, 2020	(Dollars in thousands)
Investor loans secured by real estate
CRE non-owner-occupied
Pass	$	265,901	$	541,994	$	440,351	$	287,580	$	279,238	$	791,477	$	11,114	$	—	$	2,617,655
Special mention	—		—		6,669		437		2,516		29,738		—		—		39,360
Substandard	—		9,732		2,045		—		516		5,218		559		—		18,070

Multifamily
Pass	1,027,644		1,677,716		899,123		665,939		354,859		531,287		420		—		5,156,988
Special mention	—		1,758		2,630		—		8,649		—		—		—		13,037
Substandard	—		—		—		559		772		—		—		—		1,331

Construction and land
Pass	57,309		144,759		73,313		18,625		20,531		6,672		784		—		321,993



SBA secured by real estate
Pass	—		8,306		9,029		13,418		6,305		7,696		—		—		44,754
Special mention	496		1,032		1,159		1,000		373		306		—		—		4,366
Substandard	—		1,220		2,959		1,091		400		2,541		—		—		8,211

Total investor loans secured by real estate	1,351,350		2,386,517		1,437,278		988,649		674,159		1,374,935		12,877		—		8,225,765
Business loans secured by real estate
CRE owner-occupied
Pass	293,324		409,758		332,672		327,475		225,098		469,704		14,268		246		2,072,545
Special mention	2,190		15,917		3,802		—		4,153		201		—		—		26,263
Substandard	—		—		3,636		4,214		1,169		5,973		250		—		15,242

Franchise real estate secured
Pass	44,413		81,438		66,241		96,999		24,673		27,020		—		—		340,784
Special mention	878		1,650		2,652		—		—		—		—		—		5,180
Substandard	—		—		—		—		1,968		—		—		—		1,968

SBA secured by real estate
Pass	3,253		7,637		12,608		16,058		8,488		23,624		—		—		71,668
Special mention	—		—		1,200		—		137		—		—		—		1,337
Substandard	—		—		184		1,987		1,376		3,043		—		—		6,590

Total loans secured by business real estate	344,058		516,400		422,995		446,733		267,062		529,565		14,518		246		2,541,577


			Days Past Due
	Current		30-59		60-89		90+		Total
	(Dollars in thousands)
March 31, 2021
Investor loans secured by real estate
CRE non-owner-occupied	$	2,719,494	$	9,743	$	—	$	548	$	2,729,785
Multifamily	5,309,592		—		—		—		5,309,592
Construction and land	316,458		—		—		—		316,458
SBA secured by real estate	55,941		—		—		440		56,381
Total investor loans secured by real estate	8,401,485		9,743		—		988		8,412,216
Business loans secured by real estate
CRE owner-occupied	2,024,680		—		—		5,304		2,029,984
Franchise real estate secured	340,805		—		—		—		340,805
SBA secured by real estate	73,307		—		—		660		73,967
Total business loans secured by real estate	2,438,792		—		—		5,964		2,444,756
Commercial loans
Commercial and industrial	1,651,203		3,068		61		1,766		1,656,098
Franchise non-real estate secured	399,041		—		—		—		399,041
SBA not secured by real estate	13,911		305		—		692		14,908

Total commercial loans	2,064,155		3,373		61		2,458		2,070,047
Retail loans
Single family residential	184,049		—		—		—		184,049
Consumer loans	6,324		—		—		—		6,324
Total retail loans	190,373		—		—		—		190,373
Totals	$	13,094,805	$	13,116	$	61	$	9,410	$	13,117,392


			Days Past Due
	Current		30-59		60-89		90+		Total Gross Loans
	(Dollars in thousands)
December 31, 2020
Investor loans secured by real estate
CRE non-owner-occupied	$	2,674,328	$	—	$	—	$	757	$	2,675,085
Multifamily	5,171,355		1		—		—		5,171,356
Construction and land	321,993		—		—		—		321,993
SBA secured by real estate	56,074		—		—		1,257		57,331
Total investor loans secured by real estate	8,223,750		1		—		2,014		8,225,765
Business loans secured by real estate
CRE owner-occupied	2,108,746		—		—		5,304		2,114,050
Franchise real estate secured	347,932		—		—		—		347,932
SBA secured by real estate	78,036		486		—		1,073		79,595
Total business loans secured by real estate	2,534,714		486		—		6,377		2,541,577
Commercial loans
Commercial and industrial	1,765,451		428		57		2,898		1,768,834
Franchise non-real estate secured	444,797		—		—		—		444,797
SBA not secured by real estate	14,912		338		—		707		15,957
Total commercial loans	2,225,160		766		57		3,605		2,229,588
Retail loans
Single family residential	232,559		15		—		—		232,574
Consumer loans	6,928		1		—		—		6,929
Total retail loans	239,487		16		—		—		239,503
Totals loans	$	13,223,111	$	1,269	$	57	$	11,996	$	13,236,433

Beginning on January 1, 2020, the Company evaluates loans collectively for purposes of determining the ACL in accordance with ASC 326. Collective evaluation is based on aggregating loans deemed to possess similar risk characteristics. In certain instances the Company may identify loans that it believes no longer possess risk characteristics similar to other loans in the portfolio. These loans are typically identified from a substandard or worse internal risk grade, since the specific attributes and risks associated with such loans tend to become unique as the credit deteriorates. Such loans are typically nonperforming, modified through a TDR, and/or are deemed collateral dependent, where the ultimate repayment of the loan is expected to come from the operation of or eventual sale of the collateral. Loans that are deemed by management to no longer possess risk characteristics similar to other loans in the portfolio are evaluated individually for purposes of determining an appropriate lifetime ACL. The Company uses a discounted cash flow approach, using the loan’s effective interest rate, for determining the ACL on individually evaluated loans, unless the loan is deemed collateral dependent, which requires evaluation based on the estimated fair value of the underlying collateral, less estimated costs to sell. The Company may increase or decrease the ACL for collateral dependent individually evaluated loans based on changes in the estimated expected fair value of the collateral. Changes in the ACL for all other individually evaluated loans is based substantially on the Company’s evaluation of cash flows expected to be received from such loans.

As of March 31, 2021, $38.9 million of loans were individually evaluated, and the ACL attributed to such loans totaled $688,000. At March 31, 2021, $16.9 million of individually evaluated loans were evaluated using a discounted cash flow approach and $22.0 million of individually evaluated loans were evaluated based on the underlying value of the collateral.

As of December 31, 2020, $29.2 million of loans were individually evaluated, and the ACL attributed to such loans totaled $126,000. At December 31, 2020, $15.2 million of individually evaluated loans were evaluated using a discounted cash flow approach and $14.0 million of individually evaluated loans were evaluated based on the underlying value of the collateral.

We sometimes modify or restructure loans when the borrower is experiencing financial difficulties by making a concession to the borrower in the form of changes in the amortization terms, reductions in the interest rates, the acceptance of interest only payments and, in limited cases, concessions to the outstanding loan balances. These loans are classified as TDRs. TDRs are loans modified for the purpose of alleviating temporary impairments to the borrower’s financial condition or cash flows. A workout plan between us and the borrower is designed to provide a bridge for borrower cash flow shortfalls in the near term. In most cases, the Company initially places TDRs on nonaccrual status, and may be returned to accrual status when the loan is brought current, has performed in accordance with the contractual restructured terms for a period of at least six months, and the ultimate collectability of the total contractual restructured principal and interest in no longer in doubt. At March 31, 2021 and December 31, 2020, there were no loans modified as TDRs. During the three months ended March 31, 2021, there were no loans modified as TDRs and no TDRs that experienced payment defaults after modifications within the previous 12 months. During the three months ended March 31, 2020, one TDR of $1.3 million experienced a payment default and was placed on nonaccrual.

The CARES Act, signed into law on March 27, 2020, permits financial institutions to suspend requirements under GAAP for loan modifications to borrowers affected by COVID-19 that would otherwise be characterized as TDRs and suspend any determination related thereto if (i) the loan modification is made between March 1, 2020 and the earlier of December 31, 2020 or 60 days after the end of the coronavirus emergency declaration and (ii) the applicable loan was not more than 30 days past due as of December 31, 2019. On April 7, 2020, federal bank regulators issued a joint interagency statement that allows lenders to conclude that a borrower is not experiencing financial difficulty if short-term (e.g., six months or less) modifications are made in response to the COVID-19 pandemic, such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant related to loans in which the borrower is less than 30 days past due on its contractual payments at the time a modification program is implemented. The CAA signed into law on December 27, 2020, extends the applicable period to include modification to loans held by financial institutions executed between March 1, 2020 and the earlier of (i) January 1, 2022, or (ii) 60 days after the date of termination of the COVID-19 national emergency.

For COVID-19 related loan modifications in the form of payment deferrals, the delinquency status will not advance and loans that were accruing at the time that the relief is provided will generally not be placed on nonaccrual status during the deferral period. Interest income will continue to be recognized over the contractual life of the loan. However, the Company, through its credit portfolio management activities, has continued to monitor facts and circumstances associated with the underlying credit quality of loans modified under the provisions of the CARES Act in an effort to identify any loans where the accrual of interest during the modification period is no longer appropriate. In such cases, the Company ceases the accrual of interest and all previously accrued and uncollected interest is promptly reversed against current period interest income. At March 31, 2021, there were no loans remaining within their modification period due to COVID-19 hardship under the CARES Act. Additionally, as of March 31, 2021, there were no loans in-process for potential modification. At December 31, 2020, 52 loans totaling $79.5 million, or 0.60% of loans held for investment, remained within their COVID-19 hardship modification period, of which $20.2 million of loans had migrated to the substandard risk grade. No loans were in-process for potential modification as of December 31, 2020.

Acquired loans classified as PCD are recorded at an initial amortized cost, which is comprised of the purchase price of the loans (or initial fair value) and the initial ACL determined for the loans, which is added to the purchase price of the loans, and any resulting discount or premium related to factors other than credit. Subsequent changes (favorable and unfavorable) in expected cash flows are recognized immediately in net income by adjusting the related ACL.

When loans are placed on nonaccrual status, previously accrued but unpaid interest is promptly reversed from earnings. Payments received on nonaccrual loans are generally applied as a reduction to the loan principal balance. If the likelihood of further loss is remote, the Company will recognize interest on a cash basis only. Loans may be returned to accruing status if the Company believes that all remaining principal and interest is fully collectible and there has been at least three months of sustained repayment performance since the loan was placed on nonaccrual.

The Company typically does not accrue interest on loans 90 days or more past due or when, in the opinion of management, there is reasonable doubt as to the timely collection of principal or interest. However, when such loans are well secured and in the process of collection, the Company may continue accruing of interest. The Company had no loans 90 days or more past due and still accruing at March 31, 2021 and December 31, 2020. Nonaccrual loans totaled $38.9 million at March 31, 2021 and $29.2 million as of December 31, 2020. No interest income was recognized on nonaccrual loans during the three months ended March 31, 2021 and March 31, 2020.


	Nonaccrual Loans (1)
	Collateral Dependent Loans		ACL		Non-Collateral Dependent Loans		ACL		Total Nonaccrual Loans		Nonaccrual Loans with No ACL
	(Dollars in thousands)
March 31, 2021
Investor loans secured by real estate
CRE non-owner-occupied	$	12,284	$	—	$	—	$	—	$	12,284	$	12,284


SBA secured by real estate	440		—		—		—		440		440
Total investor loans secured by real estate	12,724		—		—		—		12,724		12,724
Business loans secured by real estate
CRE owner-occupied	6,060		—		—		—		6,060		6,060

SBA secured by real estate	727		—		—		—		727		727
Total business loans secured by real estate	6,787		—		—		—		6,787		6,787
Commercial loans
Commercial and industrial	1,767		—		3,843		688		5,610		2,132
Franchise non-real estate secured	—		—		13,082		—		13,082		13,082
SBA non-real estate secured	692		—		—		—		692		692
Total commercial loans	2,459		—		16,925		688		19,384		15,906
Retail loans
Single family residential	14		—		—		—		14		14

Total retail loans	14		—		—		—		14		14
Totals nonaccrual loans	$	21,984	$	—	$	16,925	$	688	$	38,909	$	35,431


	Nonaccrual Loans (1)
	Collateral Dependent Loans		ACL		Non-Collateral Dependent Loans		ACL		Total Nonaccrual Loans		Nonaccrual Loans with No ACL
	(Dollars in thousands)
December 31, 2020
Investor loans secured by real estate
CRE non-owner-occupied	$	2,792	$	—	$	—	$	—	$	2,792	$	2,792


SBA secured by real estate	1,257		—		—		—		1,257		1,257
Total investor loans secured by real estate	4,049		—		—		—		4,049		4,049
Business loans secured by real estate
CRE owner-occupied	6,083		—		—		—		6,083		6,083

SBA secured by real estate	1,143		—		—		—		1,143		1,143
Total business loans secured by real estate	7,226		—		—		—		7,226		7,226
Commercial loans
Commercial and industrial	2,040		—		1,934		126		3,974		2,733
Franchise non-real estate secured	—		—		13,238		—		13,238		13,238
SBA non-real estate secured	707		—		—		—		707		707
Total commercial loans	2,747		—		15,172		126		17,919		16,678
Retail loans
Single family residential	15		—		—		—		15		15

Total retail loans	15		—		—		—		15		15
Totals nonaccrual loans	$	14,037	$	—	$	15,172	$	126	$	29,209	$	27,968

Loans that have been classified as collateral dependent are loans where substantially all repayment of the loan is expected to come from the operation of or eventual liquidation of the collateral. Collateral dependent loans are evaluated individually for purposes of determining the ACL, which is determined based on the estimated fair value of the collateral. Estimates for costs to sell are included in the determination of the ACL when liquidation of the collateral is anticipated. In cases where the loan is well secured and the estimated value of the collateral exceeds the amortized cost of the loan, no ACL is recorded.


	March 31, 2021
	Office Properties		Industrial Properties		Retail Properties		Land Properties		Hotel Properties		Residential Properties		Business Assets		Total
	(Dollars in thousands)
Investor loan secured by real estate
CRE non-owner-occupied	$	—	$	—	$	2,542	$	—	$	9,742	$	—	$	—	$	12,284


SBA secured by real estate	—		—		—		—		440		—		—		440
Total investor loans secured by real estate	—		—		2,542		—		10,182		—		—		12,724
Business loans secured by real estate
CRE owner-occupied	—		756		—		5,304		—		—		—		6,060

SBA secured by real estate	270		457		—		—		—		—		—		727
Total business loans secured by real estate	270		1,213		—		5,304		—		—		—		6,787
Commercial loans
Commercial and industrial	—		—		—		—		—		—		1,767		1,767

SBA non-real estate secured	—		—		—		—		—		—		692		692
Total commercial loans	—		—		—		—		—		—		2,459		2,459
Retail loans
Single family residential	—		—		—		—		—		14		—		14

Total retail loans	—		—		—		—		—		14		—		14
Totals collateral dependent loans	$	270	$	1,213	$	2,542	$	5,304	$	10,182	$	14	$	2,459	$	21,984