
	Total														Current		Non-current
	June 30, 2020		%		December 31, 2019		%		June 30, 2020		December 31, 2019		June 30, 2020		December 31, 2019
Loans held for sale	$	71,378			$	225,013			$	71,378	$	225,013	$	—	$	—

Commercial real estate loans	$	617	—	%	$	659	—	%	—		—		617		659
Commercial and industrial	2,347,005		92	%	251,349		45	%	238,359		233,510		2,108,646		17,839
Consumer loans	212,603		8	%	302,714		55	%	71,210		125,067		141,393		177,647
Total loans	2,560,225		100	%	554,722		100	%	309,569		358,577		2,250,656		196,145
Less:

Allowance for loan losses	(58,960)				(36,682)				(58,960)		(36,682)		—		—
Total loans receivable, net	$	2,501,265			$	518,040			250,609		321,895		2,250,656		196,145
Loans receivable, including loans held for sale ^(a)									$	321,987	$	546,908	$	2,250,656	$	196,145

Loans with a carrying value of approximately $6,387 and $15,737 were pledged as collateral for potential borrowings as of June 30, 2020 and December 31, 2019, respectively. WebBank serviced $2,858 and $2,898 in loans for others as of June 30, 2020 and December 31, 2019, respectively.

WebBank sold loans classified as loans held for sale of $6,919,881 and $11,306,443 during the six months ended June 30, 2020 and 2019, respectively. The sold loans were derecognized from the consolidated balance sheets. Loans classified as loans held for sale primarily consist of consumer and small business loans. Amounts added to loans held for sale during the six months ended June 30, 2020 and 2019 were $6,768,053 and $11,296,371, respectively. The reduction in loans held for sale as of June 30, 2020 reflects the impact of reduced lending by WebBank's partners due to the economic impact of COVID-19. Such factors include WebBank's partners experiencing reduced sales volume, as well as tightening their credit policies due to the increase in the U.S. unemployment rates and other factors. This in turn has reduced the volume of loans being initiated by, and then sold by, WebBank.

The ALLL represents an estimate of probable and estimable losses inherent in the loan portfolio as of the balance sheet date. The amount of the ALLL is established by analyzing the portfolio at least quarterly, and a provision for or reduction of loan losses is recorded so that the ALLL is at an appropriate level at the balance sheet date. WebBank's ALLL increased $6,539, or 12%, during the second quarter of 2020, primarily driven by the impact of COVID-19. WebBank is observing and anticipating significant economic disruption and loan performance deterioration associated with the COVID-19 pandemic. WebBank believes this will have a broad negative impact on the macro-economy and will cause estimated credit losses to materially differ from historical loss experience.


	Commercial Real Estate Loans		Commercial & Industrial		Consumer Loans		Total




December 31, 2019	$	24	$	10,920	$	25,738	$	36,682
Charge-offs	—		(6,213)		(13,454)		(19,667)
Recoveries	11		319		1,225		1,555
Provision	(14)		16,885		23,519		40,390
June 30, 2020	$	21	$	21,911	$	37,028	$	58,960


June 30, 2020	Commercial Real Estate Loans		Commercial & Industrial		Consumer Loans		Total
Allowance for loan losses:
Individually evaluated for impairment	$	11	$	494	$	—	$	505
Collectively evaluated for impairment	10		21,417		37,028		58,455
Total	$	21	$	21,911	$	37,028	$	58,960
Outstanding loan balances:
Individually evaluated for impairment	$	11	$	2,729	$	—	$	2,740
Collectively evaluated for impairment	606		2,344,276		212,603		2,557,485
Total	$	617	$	2,347,005	$	212,603	$	2,560,225


December 31, 2019	Commercial Real Estate Loans		Commercial & Industrial		Consumer Loans		Total
Allowance for loan losses:
Individually evaluated for impairment	$	12	$	360	$	—	$	372
Collectively evaluated for impairment	12		10,560		25,738		36,310
Total	$	24	$	10,920	$	25,738	$	36,682
Outstanding loan balances:
Individually evaluated for impairment	$	12	$	2,706	$	—	$	2,718
Collectively evaluated for impairment	647		248,643		302,714		552,004
Total	$	659	$	251,349	$	302,714	$	554,722

Commercial and industrial loans past due 90 days or more and still accruing interest were $11,298 and $4,962 at June 30, 2020 and December 31, 2019, respectively. Consumer loans past due 90 days or more and still accruing interest were $1,624 and $3,089 at June 30, 2020 and December 31, 2019, respectively. The Company did not have any nonaccrual loans at June 30, 2020 or December 31, 2019.


June 30, 2020	Current		30-89 Days Past Due		90+ Days Past Due		Total Past Due		Total Loans		Recorded Investment In Accruing Loans 90+ Days Past Due		Nonaccrual Loans That Are Current^(a)
Commercial real estate loans	$	617	$	—	$	—	$	—	$	617	$	—	$	—
Commercial and industrial	2,324,547		11,160		11,298		22,458		2,347,005		11,298		—
Consumer loans	207,387		3,592		1,624		5,216		212,603		1,624		—
Total loans	$	2,532,551	$	14,752	$	12,922	$	27,674	$	2,560,225	$	12,922	$	—


December 31, 2019	Current		30-89 Days Past Due		90+ Days Past Due		Total Past Due		Total Loans		Recorded Investment In Accruing Loans 90+ Days Past Due		Nonaccrual Loans That Are Current^(a)
Commercial real estate loans	$	659	$	—	$	—	$	—	$	659	$	—	$	—
Commercial and industrial	238,025		8,362		4,962		13,324		251,349		4,962		—
Consumer loans	292,394		7,231		3,089		10,320		302,714		3,089		—
Total loans	$	531,078	$	15,593	$	8,051	$	23,644	$	554,722	$	8,051	$	—

In addition to the past due and nonaccrual criteria, loans are analyzed using a loan grading system. Generally, internal grades are assigned to commercial loans based on the performance of the loans, financial/statistical models and loan officer judgment. For consumer loans and some commercial and industrial loans, the primary credit quality indicator is payment status. Reviews and grading of loans with unpaid principal balances of $100 or more is performed once per year. Grades follow definitions of Pass, Special Mention, Substandard and Doubtful, which are consistent with published definitions of regulatory risk classifications. The definitions of Pass, Special Mention, Substandard and Doubtful are summarized as follows:


June 30, 2020	Non - Graded		Pass		Special Mention		Sub- standard		Doubtful		Total Loans


Commercial real estate loans	$	—	$	606	$	—	$	11	$	—	$	617
Commercial and industrial	238,501		2,102,247		3,527		2,032		698		2,347,005
Consumer loans	212,603		—		—		—		—		212,603
Total loans	$	451,104	$	2,102,853	$	3,527	$	2,043	$	698	$	2,560,225


December 31, 2019	Non - Graded		Pass		Special Mention		Sub- standard		Doubtful		Total Loans


Commercial real estate loans	$	—	$	647	$	—	$	12	$	—	$	659
Commercial and industrial	234,560		14,083		—		2,706		—		251,349
Consumer loans	302,714		—		—		—		—		302,714
Total loans	$	537,274	$	14,730	$	—	$	2,718	$	—	$	554,722

Loans are considered impaired when, based on current information and events, it is probable that WebBank will be unable to collect all amounts due according to the contractual terms of the loan agreement, including scheduled interest payments. When loans are impaired, an estimate of the amount of the balance that is impaired is made and a specific reserve is assigned to the loan based on the estimated present value of the loan's future cash flows discounted at the loan's effective interest rate, the observable market price of the loan or the fair value of the loan's underlying collateral less the cost to sell. When the impairment is based on the fair value of the loan's underlying collateral, the portion of the balance that is impaired is charged off, such that these loans do not have a specific reserve in the ALLL. Payments received on impaired loans that are accruing are recognized in interest income, according to the contractual loan agreement. WebBank recognized $77 and $57 on impaired loans for the six months ended June 30, 2020 and 2019, respectively. Payments received on impaired loans that are on nonaccrual are not recognized in interest income, but are applied as a reduction to the principal outstanding. Payments are recognized when cash is received. Information on impaired loans is summarized as follows:


			Recorded Investment
June 30, 2020	Unpaid Principal Balance		With No Allowance		With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
Commercial real estate loans	$	11	$	—	$	11	$	11	$	11	$	12
Commercial and industrial	2,729		—		2,729		2,729		494		3,095
Total loans	$	2,740	$	—	$	2,740	$	2,740	$	505	$	3,107


			Recorded Investment
December 31, 2019	Unpaid Principal Balance		With No Allowance		With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
Commercial real estate loans	$	12	$	—	$	12	$	12	$	12	$	14
Commercial and industrial	2,706		—		2,706		2,706		360		2,746
Total loans	$	2,718	$	—	$	2,718	$	2,718	$	372	$	2,760

During the quarter ended June 30, 2020, WebBank began issuing loans under the Small Business Administration's ("SBA") Paycheck Protection Program ("PPP"), primarily with one of its lending partners, authorized under the Coronavirus Aid, Relief, and Economic Security ("CARES") Act. The loans were funded by the PPP Liquidity Facility, have terms of between 2 and 5 years, and their repayment is guaranteed by the SBA. Payments by borrowers on the loans begin six months after the note date, and interest will continue to accrue during the six-month deferment at 1%. Loans can be forgiven in whole or part (up to full principal and any accrued interest) if certain criteria are met. Loan processing fees paid to WebBank from the SBA are accounted for as loan origination fees. Net deferred fees are recognized over the life of the loan as a yield adjustment on the loans. If a loan is paid off or forgiven by the SBA prior to its maturity date, the remaining unamortized deferred fees will be recognized in interest income at that time. The PPP loans are included in Commercial and industrial loans in the table above. As of June 30, 2020, the total PPP loans and associated liabilities are $2,096,006 and $2,032,236, respectively, and included in Long-term loans receivable, net, and Other borrowings, respectively, in the consolidated balance sheet as of June 30, 2020.

The Company is offering short-term loan modifications to assist borrowers during the COVID-19 pandemic. The CARES Act along with the interagency statement issued by the federal banking agencies provides that short-term modifications made in response to COVID-19 do not need to be accounted for as a troubled debt restructuring ("TDR"). Accordingly, the Company does not account for such loan modifications as TDRs. The Company's loan modifications allow for the deferral of up to 3 months of principal and interest. The deferred interest and principal is accrued and, the Company expects to collect this amount through the life of the loan. The program is ongoing, and additional loans continue to be granted deferrals. At June 30, 2020, the Company granted approximately 11,380 short–term deferments on loan balances of $31,143, which represent 1.25% of total loan balances as of June 30, 2020. These short–term deferments are not classified as TDRs and will not be reported as past due provided that they are performing in accordance with the modified terms.