
	June 30,		December 31,
	2020		2019
Commercial and industrial⁽¹⁾	$	1,289,646	$	1,034,036
Construction	553,619		551,101
Residential real estate:
1-to-4 family mortgage	741,936		710,454
Residential line of credit	236,974		221,530
Multi-family mortgage	115,149		69,429
Commercial real estate:
Owner occupied	683,245		630,270
Non-owner occupied	923,192		920,744
Consumer and other	283,262		272,078
Gross loans	4,827,023		4,409,642
Less: Allowance for credit losses	(113,129)		(31,139)
Net loans	$	4,713,894	$	4,378,503

⁽¹⁾Includes $314,678 of loans originated as part of the PPP at June 30, 2020, established by the CARES Act, in response to the COVID-19 pandemic. The PPP is administered by the SBA; loans originated as part of the PPP may be forgiven by the SBA under a set of defined rules. An allowance for credit losses of $51 at June 30, 2020, has been allocated for these loans. PPP loans are federally guaranteed as part of the CARES Act, provided PPP loan recipients receive loan forgiveness under the SBA regulations. As such, there is minimal credit risk associated with these loans.

As of June 30, 2020 and December 31, 2019, $501,728 and $412,966, respectively, of qualifying residential mortgage loans (including loans held for sale) and $567,515 and $545,540, respectively, of qualifying commercial mortgage loans were pledged to the Federal Home Loan Bank of Cincinnati securing advances against the Bank’s line of credit. Additionally, as of June 30, 2020 and December 31, 2019, $1,492,666 and $1,407,662, respectively, of qualifying loans were pledged to the Federal Reserve Bank under the Borrower-in-Custody program.

As of January 1, 2020, the Company’s policy for the allowance changed with the adoption of CECL. As permitted, the new guidance was implemented using a modified retrospective approach with the impact of the initial adoption being recorded through retained earnings at January 1, 2020, with no restatement of prior periods. Before January 1, 2020, the Company calculated the allowance on an incurred loss approach. As of January 1, 2020, the Company calculated an expected credit loss using a lifetime loss rate methodology. As a result of the difference in methodology between periods, disclosures presented below may not be comparative in nature.

The Company utilizes probability-weighted forecasts, which consider multiple macroeconomic variables from a third-party vendor that are applicable to the type of loan. The weighting of the economic forecast scenarios, macroeconomic variables, and the reasonable and supportable forecast period at the macroeconomic variable-level were reviewed and approved by the Company's forecast governance committee based on expectations of future economic conditions. Each of the Company's loss rate models incorporate forward-looking macroeconomic projections throughout the reasonable and supportable forecast period and the subsequent historical reversion at the macroeconomic variable input level. In order to estimate the life of a loan, the contractual term of the loan is adjusted for estimated prepayments based on market information and the Company’s prepayment history.

The Company's loss rate models estimate the lifetime loss rate for pools of loans by combining the calculated loss rate based on each variable within the model (including the macroeconomic variables). The lifetime loss rate for the pool is then multiplied by the loan balances to determine the expected credit losses on the pool.

The Company considers the need to qualitatively adjust its modeled quantitative expected credit loss estimate for information not already captured in the model loss estimation process. These qualitative factor adjustments may increase or decrease the Company’s estimate of expected credit losses. The Company reviews the qualitative adjustments so as to validate that information that has already been considered and included in the modeled quantitative loss estimation process is not also included in the qualitative adjustment. The Company considers the qualitative factors that are relevant to the institution as of the reporting date, which may include, but are not limited to: levels of and trends in delinquencies and performance of loans; levels of and trends in write-offs and recoveries collected; trends in volume and terms of loans; effects of any changes in reasonable and supportable economic forecasts; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and expertise; available relevant information sources that contradict the Company’s own forecast; effects of changes in prepayment expectations or other factors affecting assessments of loan contractual terms; industry conditions; and effects of changes in credit concentrations.

The quantitative models require loan data and macroeconomic variables based on the inherent credit risks in each portfolio to more accurately measure the credit risks associated with each. Each of the quantitative models pools loans with similar risk characteristics and collectively assesses the lifetime loss rate for each pool to estimate its expected credit loss.

When a loan no longer shares similar risk characteristics with other loans in any given pool, the loan is individually assessed. The Company has determined the following circumstances in which a loan may require an individual evaluation: collateral dependent loans; loans for which foreclosure is probable; TDRs and reasonably expected TDRs. A loan is deemed collateral dependent when 1) the borrower is experiencing financial difficulty and 2) the repayment is expected to be primarily through sale or operation of the collateral. The allowance for credit losses for collateral dependent loans as well as loans where foreclosure is probable is calculated as the amount for which the loan’s amortized cost basis exceeds fair value. Fair value is determined based on appraisals performed by qualified appraisers and reviewed by qualified personnel. In cases where repayment is to be provided substantially through the sale of collateral, the Company reduces the fair value by the estimated costs to sell. Loans experiencing financial difficulty for which a concession has not yet been provided may be identified as reasonably expected TDRs.

Reasonably expected TDRs use the same methodology as TDRs. In cases where the expected credit loss can only be captured through a discounted cash flow analysis (such as an interest rate modification for a TDR loan), the allowance is measured by the amount which the loan’s amortized cost exceeds the discounted cash flow analysis. The allowance for credit losses on a TDR or a reasonably expected TDR is calculated individually using a discounted cash flow methodology, unless the loan is deemed to be collateral dependent or foreclosure is probable.

The Company’s changes in reasonable and supportable forecasts of macroeconomic variables, primarily due to the impact of the COVID-19 pandemic, resulted in credit deterioration requiring the Company to recognize significant increases in the provision for credit losses during the three and six months ended June 30, 2020. Specifically, the Company performed additional qualitative evaluations on certain classes of financing receivables, including construction, commercial and industrial and commercial real estate, in line with the Company's established qualitative framework, weighting the impact of the current economic outlook, status of federal government stimulus programs, and geographical and demographic considerations, in order to identify potential geographies and industries seeing credit improvement or deterioration specific to the COVID-19 pandemic.


	Commercial and industrial		Construction		1-to-4 family residential mortgage		Residential line of credit		Multi-family residential mortgage		Commercial real estate owner occupied		Commercial real estate non-owner occupied		Consumer and other		Total
Three Months Ended June 30, 2020
Beginning balance - March 31, 2020	$	10,881	$	22,842	$	13,006	$	6,213	$	2,328	$	9,047	$	18,005	$	6,819	$	89,141
Provision for credit losses	(2,663)		12,624		(446)		595		2,171		(1,630)		12,984		404		24,039
Recoveries of loans previously charged-off	807		151		26		24		—		3		—		103		1,114
Loans charged off	(147)		(18)		(123)		(21)		—		—		(545)		(311)		(1,165)

Ending balance - June 30, 2020	$	8,878	$	35,599	$	12,463	$	6,811	$	4,499	$	7,420	$	30,444	$	7,015	$	113,129
Six Months Ended June 30, 2020
Beginning balance - December 31, 2019	$	4,805	$	10,194	$	3,112	$	752	$	544	$	4,109	$	4,621	$	3,002	$	31,139
Impact of adopting ASC 326 on non-purchased credit deteriorated loans	5,300		1,533		7,920		3,461		340		1,879		6,822		3,633		30,888
Impact of adopting ASC 326 on purchased credit deteriorated loans	82		150		421		(3)		—		162		184		(438)		558
Provision for credit losses	(834)		23,578		1,218		2,580		3,615		1,408		18,919		1,519		52,003
Recoveries of loans previously charged-off	895		151		50		39		—		17		—		296		1,448
Loans charged off	(1,381)		(18)		(365)		(21)		—		(209)		(545)		(1,037)		(3,576)


Initial allowance on loans purchased with deteriorated credit quality	11		11		107		3		—		54		443		40		669
Ending balance - June 30, 2020	$	8,878	$	35,599	$	12,463	$	6,811	$	4,499	$	7,420	$	30,444	$	7,015	$	113,129


	Commercial and industrial		Construction		1-to-4 family residential mortgage		Residential line of credit		Multi- family residential mortgage		Commercial real estate owner occupied		Commercial real estate non-owner occupied		Consumer and other		Total
Three Months Ended June 30, 2019
Beginning balance - March 31, 2019	$	5,514	$	9,758	$	3,295	$	731	$	539	$	3,098	$	4,583	$	2,296	$	29,814
Provision for loan losses	(550)		(109)		(30)		106		78		409		(105)		1,082		881
Recoveries of loans previously charged-off	38		6		24		21		—		5		—		119		213
Loans charged off	(79)		—		(1)		(103)		—		—		—		(587)		(770)
Ending balance - June 30, 2019	$	4,923	$	9,655	$	3,288	$	755	$	617	$	3,512	$	4,478	$	2,910	$	30,138
Six Months Ended June 30, 2019
Beginning balance - December 31, 2018	$	5,348	$	9,729	$	3,428	$	811	$	566	$	3,132	$	4,149	$	1,769	$	28,932
Provision for loan losses	(217)		(81)		(95)		33		51		288		329		1,964		2,272
Recoveries of loans previously charged-off	50		7		37		46		—		92		—		343		575
Loans charged off	(258)		—		(82)		(135)		—		—		—		(1,166)		(1,641)

Ending balance - June 30, 2019	$	4,923	$	9,655	$	3,288	$	755	$	617	$	3,512	$	4,478	$	2,910	$	30,138


	December 31, 2019
	Commercial and industrial		Construction		1-to-4 family residential mortgage		Residential line of credit		Multi- family residential mortgage		Commercial real estate owner occupied		Commercial real estate non-owner occupied		Consumer and other		Total
Amount of allowance allocated to:
Individually evaluated for impairment	$	241	$	—	$	8	$	9	$	—	$	238	$	399	$	—	$	895
Collectively evaluated for impairment	4,457		10,192		2,940		743		544		3,853		3,909		1,933		28,571
Acquired with deteriorated credit quality	107		2		164		—		—		18		313		1,069		1,673
Ending balance - December 31, 2019	$	4,805	$	10,194	$	3,112	$	752	$	544	$	4,109	$	4,621	$	3,002	$	31,139


	December 31, 2019
	Commercial and industrial		Construction		1-to-4 family residential mortgage		Residential line of credit		Multi- family residential mortgage		Commercial real estate owner occupied		Commercial real estate non-owner occupied		Consumer and other		Total
Loans, net of unearned income
Individually evaluated for impairment	$	9,026	$	2,061	$	1,347	$	579	$	—	$	2,993	$	7,755	$	49	$	23,810
Collectively evaluated for impairment	1,023,326		546,156		689,769		220,878		69,429		621,386		902,792		254,944		4,328,680
Acquired with deteriorated credit quality	1,684		2,884		19,338		73		—		5,891		10,197		17,085		57,152
Ending balance - December 31, 2019	$	1,034,036	$	551,101	$	710,454	$	221,530	$	69,429	$	630,270	$	920,744	$	272,078	$	4,409,642

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans that share similar risk characteristics collectively. Loans that do not share similar risk characteristics are evaluated individually.

Watch. Loans rated as Watch include those that management believes have conditions that have occurred, or may occur, which could result in the loan being downgraded to an inferior category. Also included in watch are loans rated as special mention, which have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

The following table presents the credit quality of our loan portfolio by year of origination as of June 30, 2020. Revolving loans are presented separately. Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal constitutes a current period origination. Generally, current period renewals of credit are reunderwritten at the point of renewal and considered current period originations for the purposes of the table below.


June 30, 2020
	Term Loans
	Amortized Cost Basis by Origination Year
	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Total
Commercial and industrial
Pass	$	338,964	$	168,783	$	69,250	$	41,722	$	32,820	$	31,449	$	481,897	$	1,164,885
Watch	2,791		10,761		33,603		3,928		5,772		4,414		39,740		101,009
Substandard	250		2,535		4,584		3,251		1,414		3,696		7,806		23,536
Doubtful	16		—		—		—		—		—		200		216
Total	342,021		182,079		107,437		48,901		40,006		39,559		529,643		1,289,646

Construction
Pass	62,335		170,746		74,183		32,656		32,790		71,149		90,620		534,479
Watch	58		10		229		10,126		740		2,807		—		13,970
Substandard	—		1,170		409		11		—		3,205		208		5,003
Doubtful	—		167		—		—		—		—		—		167
Total	62,393		172,093		74,821		42,793		33,530		77,161		90,828		553,619

Residential real estate:
1-to-4 family mortgage
Pass	99,613		172,190		137,308		89,665		62,505		142,668		—		703,949
Watch	913		603		608		2,139		3,537		12,938		—		20,738
Substandard	353		1,222		1,891		3,674		1,640		7,664		—		16,444
Doubtful	—		—		56		—		325		424		—		805
Total	100,879		174,015		139,863		95,478		68,007		163,694		—		741,936

Residential line of credit
Pass	56		—		—		—		284		3,297		230,334		233,971
Watch	—		—		—		—		—		—		788		788
Substandard	—		—		—		—		—		77		1,692		1,769
Doubtful	—		—		—		—		—		—		446		446
Total	56		—		—		—		284		3,374		233,260		236,974

Multi-family mortgage
Pass	20,796		14,346		6,758		42,196		2,965		28,030		—		115,091
Watch	—		—		—		—		—		58		—		58
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Total	20,796		14,346		6,758		42,196		2,965		28,088		—		115,149


December 31, 2019	Pass		Watch		Substandard		Total
Loans, excluding purchased credit impaired loans
Commercial and industrial	$	946,247	$	66,910	$	19,195	$	1,032,352
Construction	541,201		4,790		2,226		548,217
Residential real estate:
1-to-4 family mortgage	666,177		11,380		13,559		691,116
Residential line of credit	218,086		1,343		2,028		221,457
Multi-family mortgage	69,366		63		—		69,429
Commercial real estate:
Owner occupied	576,737		30,379		17,263		624,379
Non-owner occupied	876,670		24,342		9,535		910,547
Consumer and other	248,632		3,304		3,057		254,993
Total loans, excluding purchased credit impaired loans	$	4,143,116	$	142,511	$	66,863	$	4,352,490
Purchased credit impaired loans
Commercial and industrial	$	—	$	1,224	$	460	$	1,684
Construction	—		2,681		203		2,884
Residential real estate:
1-to-4 family mortgage	—		15,091		4,247		19,338
Residential line of credit	—		—		73		73
Multi-family mortgage	—		—		—		—
Commercial real estate:
Owner occupied	—		4,535		1,356		5,891
Non-owner occupied	—		6,617		3,580		10,197
Consumer and other	—		13,521		3,564		17,085
Total purchased credit impaired loans	—		43,669		13,483		57,152
Total loans	$	4,143,116	$	186,180	$	80,346	$	4,409,642

The following tables provide information on nonaccrual and past due loans as of June 30, 2020 and December 31, 2019. For December 31, 2019, purchased credit impaired ("PCI") loans are not included in the nonperforming disclosures as these loans are considered to be performing, even though they may be contractually past due. This is because any non-payment of contractual principal or interest was considered in the periodic re-estimation of expected cash flows and was included in the 2019 loan loss provision or future period yield adjustments. Under PCD accounting, management considers changes in the credit quality of the borrower as part of its regular estimation of expected credit losses and does not make the same future yield adjustments as under the PCI accounting. Consequently, PCD loans that are contractually past due or on nonaccrual status, including those formerly accounted for as PCI loans, are included in the June 30, 2020 nonperforming disclosures.


June 30, 2020	30-89 days past due		90 days or more and accruing interest		Non-accrual loans		Loans current on payments and accruing interest		Total
Commercial and industrial	$	1,057	$	111	$	2,308	$	1,286,170	$	1,289,646
Construction	769		465		1,482		550,903		553,619
Residential real estate:
1-to-4 family mortgage	5,658		4,712		5,392		726,174		741,936
Residential line of credit	398		277		704		235,595		236,974
Multi-family mortgage	58		—		—		115,091		115,149
Commercial real estate:
Owner occupied	43		—		2,644		680,558		683,245
Non-owner occupied	169		226		13,113		909,684		923,192
Consumer and other	3,172		621		2,770		276,699		283,262
Total	$	11,324	$	6,412	$	28,413	$	4,780,874	$	4,827,023


				June 30, 2020
	u				End of period amortized cost
		Beginning of period non-accrual amortized cost			Non-accrual with no related allowance		Non-accrual with related allowance		Related allowance

Commercial and industrial		$	5,586		$	1,098	$	1,210	$	350
Construction		1,254			1,218		264		47
Residential real estate:
1-to-4 family mortgage		4,585			1,789		3,603		68
Residential line of credit		489			151		553		12

Commercial real estate:
Owner occupied		2,285			1,723		921		78
Non-owner occupied		9,460			2,762		10,351		1,625
Consumer and other		1,623			—		2,770		134
Total		$	25,282		$	8,741	$	19,672	$	2,314


			Interest Income
June 30, 2020	Three Months Ended		Six Months Ended

Commercial and industrial	$	17	$	169
Construction	6		33
Residential real estate:
1-to-4 family mortgage	6		13
Residential line of credit	—		1

Commercial real estate:
Owner occupied	43		64
Non-owner occupied	109		128
Consumer and other	24		24
Total	$	205	$	432


December 31, 2019	30-89 days past due		90 days or more and accruing interest		Non-accrual loans		Purchased Credit Impaired loans		Loans current on payments and accruing interest		Total
Commercial and industrial	$	1,918	$	291	$	5,587	$	1,684	$	1,024,556	$	1,034,036
Construction	1,021		42		1,087		2,884		546,067		551,101
Residential real estate:
1-to-4 family mortgage	10,738		3,965		3,332		19,338		673,081		710,454
Residential line of credit	658		412		416		73		219,971		221,530
Multi-family mortgage	63		—		—		—		69,366		69,429
Commercial real estate:
Owner occupied	1,375		—		1,793		5,891		621,211		630,270
Non-owner occupied	327		—		7,880		10,197		902,340		920,744
Consumer and other	2,377		833		967		17,085		250,816		272,078
Total	$	18,477	$	5,543	$	21,062	$	57,152	$	4,307,408	$	4,409,642


December 31, 2019	Recorded investment		Unpaid principal		Related allowance
With a related allowance recorded:
Commercial and industrial	$	6,080	$	8,350	$	241

Residential real estate:
1-to-4 family mortgage	264		324		8
Residential line of credit	320		320		9

Commercial real estate:
Owner occupied	756		1,140		238
Non-owner occupied	6,706		6,747		399
Consumer and other	—		—		—
Total	$	14,126	$	16,881	$	895
With no related allowance recorded:
Commercial and industrial	$	2,946	$	3,074	$	—
Construction	2,061		2,499		—
Residential real estate:
1-to-4 family mortgage	1,083		1,449		—
Residential line of credit	259		280		—

Commercial real estate:
Owner occupied	2,237		2,627		—
Non-owner occupied	1,049		1,781		—
Consumer and other	49		49		—
Total	$	9,684	$	11,759	$	—
Total impaired loans	$	23,810	$	28,640	$	895


Three Months Ended									Six Months Ended
June 30, 2019	Average recorded investment		Interest income recognized (cash basis)		Average recorded investment		Interest income recognized (cash basis)
With a related allowance recorded:
Commercial and industrial	$	3,161	$	67	$	1,877	$	105

Residential real estate:
1-to-4 family mortgage	336		9		206		11


Commercial real estate:
Owner occupied	187		4		373		6
Non-owner occupied	5,570		34		5,588		34
Consumer and other	250		19		250		19
Total	$	9,504	$	133	$	8,294	$	175
With no related allowance recorded:
Commercial and industrial	$	819	$	11	$	1,004	$	25
Construction	1,218		4		1,219		52
Residential real estate:
1-to-4 family mortgage	528		18		715		26
Residential line of credit	607		—		427		2

Commercial real estate:
Owner occupied	1,830		34		1,922		62
Non-owner occupied	1,049		—		1,049		—
Consumer and other	70		1		71		3
Total	$	6,121	$	68	$	6,407	$	170
Total impaired loans	$	15,625	$	201	$	14,701	$	345


	Three Months Ended June 30,		Six Months Ended June 30,
	2019		2019
Balance at the beginning of period	$	(14,814)	$	(16,587)
Additions through business combinations	(1,167)		(1,167)
Principal reductions and other reclassifications from nonaccretable difference	30		250

Accretion	1,705		3,888
Changes in expected cash flows	(616)		(1,246)
Balance at end of period	$	(14,862)	$	(14,862)

Included in the ending balance of the accretable yield on PCI loans at December 31, 2019, was a purchase accounting liquidity discount of $292. There was also a purchase accounting nonaccretable credit discount of $3,537 related to the PCI loan portfolio at December 31, 2019, and an accretable credit and liquidity discount on non-PCI loans of $8,964 and $3,924, respectively, as of December 31, 2019.

Interest revenue, through accretion of the difference between the recorded investment of the loans and the expected cash flows, was recognized on all PCI loans. Accretion of interest income amounting to $1,705 and $3,888 was recognized on PCI loans during the three and six months ended June 30, 2019, respectively. This included both the contractual interest income recognized and the purchase accounting contribution through accretion of the liquidity discount for changes in estimated cash flows. The total purchase accounting contribution through accretion excluding contractual interest collected for all purchased loans was $2,097 and $3,928 for the three and six months ended June 30, 2019, respectively.

As of June 30, 2020 and December 31, 2019, the Company has a recorded investment in TDRs of $13,277 and $12,206, respectively. The modifications included extensions of the maturity date and/or a stated rate of interest to one lower than the current market rate to borrowers experiencing financial difficulty. The Company has calculated $606 and $360 of specific reserves for those loans at June 30, 2020 and December 31, 2019, respectively. There were no commitments to lend any additional amounts to these customers for either period end. Of these loans, $5,821 and $5,201 were classified as non-accrual loans as of June 30, 2020 and December 31, 2019, respectively.


Three Months Ended June 30, 2020	Number of loans	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment		Charge offs and specific reserves
Commercial and industrial	1	$	1,153	$	1,153	$	—

Commercial real estate:
Owner occupied	1	788		788		—

Residential real estate:
1-to-4 family mortgage	1	13		13		—


Total	3	$	1,954	$	1,954	$	—


Six Months Ended June 30, 2020	Number of loans	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment		Charge offs and specific reserves
Commercial and industrial	1	$	1,153	$	1,153	$	—

Commercial real estate:
Owner occupied	1	788		788		—

Residential real estate:
1-to-4 family mortgage	2	77		77		—


Total	4	$	2,018	$	2,018	$	—

There were no loans modified as troubled debt restructurings for which there was a payment default within twelve months following the modification during the three or six months ended June 30, 2020 and 2019. A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms.

In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy. The terms of certain other loans were modified during the three and six months ended June 30, 2020 and 2019 that did not meet the definition of a TDR. The modification of these loans usually involve either a modification of the terms of a loan to borrowers who are not experiencing financial difficulties or an insignificant delay in payments.

For loans for which the repayment (based on the Company's assessment) is expected to be provided substantially through the operation or sale of collateral and the borrower is experiencing financial difficulty, the following table presents the loans and the corresponding individually assessed allowance for credit losses by class of financing receivable.


	June 30, 2020
	Type of Collateral
	Real Estate		Financial Assets and Equipment		Individually assessed allowance for credit loss
Commercial and industrial	$	—	$	3,062	$	543
Construction	1,232		—		—
Residential real estate:
1-to-4 family mortgage	100		—		—
Residential line of credit	471		—		9
Multi-family mortgage	—		—		—
Commercial real estate:
Owner occupied	1,461		—		35
Non-owner occupied	8,500		—		1,563
Consumer and other	—		336		35
Total	$	11,764	$	3,398	$	2,185

On March 22, 2020, an Interagency Statement was issued by banking regulators encouraging financial institutions to work prudently with borrowers who are or may be unable to meet their contractual payment obligations due to the effects of COVID-19. Additionally, Section 4013 of the CARES Act further provides that a qualified loan modification is exempt by law from classification as a TDR as defined by GAAP, from the period beginning March 1, 2020 until the earlier of December 31, 2020 or the date that is 60 days after the date on which the national emergency concerning the COVID-19 outbreak terminates.The following table outlines the Company's recorded investment and percentage of loans held for investment by class of financing receivable for Company executed deferrals in connection with COVID-19 relief. These deferrals typically ranged from sixty to ninety days per deferral and were not considered TDRs under the interagency regulatory guidance or the CARES Act issued in March 2020.


	June 30, 2020
					% of Loans
Commercial and industrial	$	164,804	12.8	%
Construction	82,514		14.9	%
Residential real estate:
1-to-4 family mortgage	83,590		11.3	%
Residential line of credit	14,200		6.0	%
Multi-family mortgage	45,321		39.4	%
Commercial real estate:
Owner occupied	190,044		27.8	%
Non-owner occupied	321,707		34.8	%
Consumer and other	16,078		5.7	%
Total	$	918,258	19.0	%