
	September 30,		December 31,
	2020		2019
Commercial and industrial (1)	$	1,417,671	$	1,034,036
Construction	1,190,878		551,101
Residential real estate:
1-to-4 family mortgage	1,140,611		710,454
Residential line of credit	420,318		221,530
Multi-family mortgage	165,937		69,429
Commercial real estate:
Owner occupied	924,987		630,270
Non-owner occupied	1,644,400		920,744
Consumer and other	308,736		272,078
Gross loans	7,213,538		4,409,642
Less: Allowance for credit losses	(183,973)		(31,139)
Net loans	$	7,029,565	$	4,378,503

(1)Includes $310,719 of loans originated as part of the PPP at September 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 $49 at September 30, 2020, has been calculated 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 September 30, 2020 and December 31, 2019, $1,083,393 and $412,966, respectively, of qualifying residential mortgage loans (including loans held for sale) and $996,582 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 September 30, 2020 and December 31, 2019, $1,378,968 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 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 acquisitions and changes in reasonable and supportable forecasts of macroeconomic variables, primarily due to the impact of the COVID-19 pandemic, resulted in projected credit deterioration requiring the Company to recognize significant increases in the provision for credit losses during the nine months ended September 30, 2020. Specifically, the Company performed additional qualitative evaluations by class of financing receivable in line with the Company's established qualitative framework, weighting the impact of the current economic outlook, status of federal government stimulus programs, and other considerations, in order to identify specific industries or borrowers seeing credit improvement or deterioration specific to the COVID-19 pandemic.

Loans acquired during the period from Franklin increased the allowance for credit losses by $77,653 as of the August 15, 2020 acquisition date and Farmers National increased the allowance for credit losses by $4,494 as of the February 14, 2020 acquisition date. Outside of the impact of Franklin on the provision for credit losses, the remaining loan portfolio benefited from improved economic forecasts, seen for the first time in 2020, reflective of the resumption of more normalized commercial activity within our markets. As such, excluding the increase recorded upon the acquisition of Franklin, we reduced the allowance for credit losses by $7,336 during the three months ended September 30, 2020 based on these improved economic forecasts. See Note 2, "Mergers and acquisitions" for additional details related to PCD loans acquired on February 14, 2020.


	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 September 30, 2020
Beginning balance - June 30, 2020	$	8,878	$	35,599	$	12,463	$	6,811	$	4,499	$	7,420	$	30,444	$	7,015	$	113,129
Provision for credit losses	(1,520)		22,383		4,194		4,053		1,908		(1,276)		12,364		3,728		45,834
Recoveries of loans previously charged-off	757		51		116		22		—		51		—		175		1,172
Loans charged off	(249)		—		(8)		—		—		(95)		(166)		(475)		(993)
Initial allowance on loans purchased with deteriorated credit quality	743		5,596		1,533		569		784		605		14,998		3		24,831

Ending balance - September 30, 2020	$	8,609	$	63,629	$	18,298	$	11,455	$	7,191	$	6,705	$	57,640	$	10,446	$	183,973
Nine Months Ended September 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	(2,354)		45,962		5,412		6,633		5,523		132		31,282		5,247		97,837
Recoveries of loans previously charged-off	1,652		202		166		61		—		68		—		471		2,620
Loans charged off	(1,630)		(18)		(373)		(21)		—		(304)		(711)		(1,512)		(4,569)


Initial allowance on loans purchased with deteriorated credit quality	754		5,606		1,640		572		784		659		15,442		43		25,500
Ending balance - September 30, 2020	$	8,609	$	63,629	$	18,298	$	11,455	$	7,191	$	6,705	$	57,640	$	10,446	$	183,973


	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 September 30, 2019
Beginning balance - June 30, 2019	$	4,923	$	9,655	$	3,288	$	755	$	617	$	3,512	$	4,478	$	2,910	$	30,138
Provision for loan losses	234		186		18		67		(43)		194		461		714		1,831
Recoveries of loans previously charged-off	16		1		25		75		—		3		—		92		212
Loans charged off	(3)		—		—		(170)		—		—		(12)		(532)		(717)
Ending balance - September 30, 2019	$	5,170	$	9,842	$	3,331	$	727	$	574	$	3,709	$	4,927	$	3,184	$	31,464
Nine Months Ended September 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	17		105		(77)		100		8		482		790		2,678		4,103
Recoveries of loans previously charged-off	66		8		62		121		—		95		—		435		787
Loans charged off	(261)		—		(82)		(305)		—		—		(12)		(1,698)		(2,358)

Ending balance - September 30, 2019	$	5,170	$	9,842	$	3,331	$	727	$	574	$	3,709	$	4,927	$	3,184	$	31,464


	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 September 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.


September 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	$	399,906	$	186,100	$	69,916	$	53,213	$	33,976	$	45,860	$	511,111	$	1,300,082
Watch	3,236		3,034		6,283		3,652		11,293		6,245		36,083		69,826
Substandard	6		3,160		17,022		6,552		686		6,869		13,269		47,564
Doubtful	35		—		—		—		—		—		164		199
Total	403,183		192,294		93,221		63,417		45,955		58,974		560,627		1,417,671

Construction
Pass	311,117		448,019		110,473		49,845		41,750		75,570		115,894		1,152,668
Watch	1,282		1,231		9,435		13,822		1,305		3,585		—		30,660
Substandard	—		972		642		132		880		4,919		—		7,545
Doubtful	—		—		—		—		—		5		—		5
Total	312,399		450,222		120,550		63,799		43,935		84,079		115,894		1,190,878

Residential real estate:
1-to-4 family mortgage
Pass	232,248		203,167		188,471		170,725		119,327		168,732		—		1,082,670
Watch	1,257		786		3,318		12,580		4,155		14,506		—		36,602
Substandard	532		1,452		3,274		4,128		2,039		9,120		—		20,545
Doubtful	—		34		—		—		270		490		—		794
Total	234,037		205,439		195,063		187,433		125,791		192,848		—		1,140,611

Residential line of credit
Pass	254		—		87		—		208		3,577		405,767		409,893
Watch	—		—		—		—		—		—		5,205		5,205
Substandard	109		1		—		3		—		—		4,848		4,961
Doubtful	—		—		—		—		—		—		259		259
Total	363		1		87		3		208		3,577		416,079		420,318

Multi-family mortgage
Pass	23,747		15,055		12,629		54,660		11,718		36,812		11,259		165,880
Watch	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		57.00		—		57
Doubtful	—		—		—		—		—		—		—		—
Total	23,747		15,055		12,629		54,660		11,718		36,869		11,259		165,937


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 September 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 September 30, 2020 nonperforming disclosures.


September 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	$	1,581	$	11	$	6,579	$	1,409,500	$	1,417,671
Construction	4,346		196		2,018		1,184,318		1,190,878
Residential real estate:
1-to-4 family mortgage	4,143		7,452		6,752		1,122,264		1,140,611
Residential line of credit	287		216		1,925		417,890		420,318
Multi-family mortgage	—		57		—		165,880		165,937
Commercial real estate:
Owner occupied	1,096		—		2,194		921,697		924,987
Non-owner occupied	114		—		12,358		1,631,928		1,644,400
Consumer and other	3,584		1,132		2,759		301,261		308,736
Total	$	15,151	$	9,064	$	34,585	$	7,154,738	$	7,213,538


				September 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		$	913	$	5,666	$	936
Construction		1,254			980		1,038		145
Residential real estate:
1-to-4 family mortgage		4,585			4,247		2,505		62
Residential line of credit		489			—		1,925		74

Commercial real estate:
Owner occupied		2,285			1,469		725		66
Non-owner occupied		9,460			5,475		6,883		1,568
Consumer and other		1,623			88		2,671		165
Total		$	25,282		$	13,172	$	21,413	$	3,016


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					Nine Months Ended
September 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	$	3,109	$	51	$	1,850	$	156

Residential real estate:
1-to-4 family mortgage	265		2		205		13


Commercial real estate:
Owner occupied	184		4		371		10
Non-owner occupied	6,143		56		6,241		90
Consumer and other	447		—		198		19
Total	$	10,148	$	113	$	8,865	$	288
With no related allowance recorded:
Commercial and industrial	$	766	$	11	$	991	$	36
Construction	1,639		90		1,641		142
Residential real estate:
1-to-4 family mortgage	835		24		962		50
Residential line of credit	427		—		245		2

Commercial real estate:
Owner occupied	2,045		41		2,171		103
Non-owner occupied	1,050		—		1,050		—
Consumer and other	66		2		69		5
Total	$	6,828	$	168	$	7,129	$	338
Total impaired loans	$	16,976	$	281	$	15,994	$	626


	Three Months Ended September 30,		Nine Months Ended September 30,
	2019		2019
Balance at the beginning of period	$	(14,862)	$	(16,587)
Additions through business combinations	—		(1,167)
Principal reductions and other reclassifications from nonaccretable difference	(150)		100

Accretion	1,583		5,471
Changes in expected cash flows	110		(1,136)
Balance at end of period	$	(13,319)	$	(13,319)

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 $1,583 and $5,471 was recognized on PCI loans during the three and nine months ended September 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 $2,102 and $6,030 for the three and nine months ended September 30, 2019, respectively.

As of September 30, 2020 and December 31, 2019, the Company has a recorded investment in TDRs of $16,681 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 $854 and $360 of specific reserves for those loans at September 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, $12,243 and $5,201 were classified as non-accrual loans as of September 30, 2020 and December 31, 2019, respectively.


Three Months Ended September 30, 2019	Number of loans	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment		Charge offs and specific reserves
Commercial and industrial	1	$	16	$	16	$	—
Construction	1	1,070		1,070
Commercial real estate:
Owner occupied	1	927		927		—
Non-owner occupied	1	1,366		1,366		106
Residential real estate:
1-to-4 family mortgage	1	128		128		—
Total	5	$	3,507	$	3,507	$	106


Nine Months Ended September 30, 2020	Number of loans	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment		Charge offs and specific reserves
Commercial and industrial	3	$	1,573	$	1,573	$	—

Commercial real estate:
Owner occupied	1	788		788		—
Non-owner occupied	2	3,752		3,752		$	—
Residential real estate:
1-to-4 family mortgage	2	77		77		—


Total	8	$	6,190	$	6,190	$	—


Nine Months Ended September 30, 2019	Number of loans	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment		Charge offs and specific reserves
Commercial and industrial	3	$	3,204	$	3,204	$	—
Construction	1	1,070		1,070		—
Commercial real estate:
Owner occupied	1	927		927		—
Non-owner occupied	1	1,366		1,366		106
Residential real estate:
1-4 family mortgage	1	128		128		—

Total	7	$	6,695	$	6,695	$	106

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 nine months ended September 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.


	September 30, 2020
	Type of Collateral
	Real Estate		Financial Assets and Equipment		Individually assessed allowance for credit loss
Commercial and industrial	$	—	$	4,697	$	668
Construction	1,817		—		—
Residential real estate:
1-to-4 family mortgage	190		—		—
Residential line of credit	1,195		—		9
Multi-family mortgage	—		—		—
Commercial real estate:
Owner occupied	928		—		34
Non-owner occupied	8,181		—		1,544
Consumer and other	333		—		36
Total	$	12,644	$	4,697	$	2,291

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 that remain on deferral at September 30, 2020, in connection with Company COVID-19 relief programs. 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. As of September 30, 2020, the Company had a total of $1,181,232 loans previously deferred that returned to normal payment status.


	September 30, 2020
				% of Loans
Commercial and industrial		$	25,641		1.8	%
Construction		35,920			3.0	%
Residential real estate:
1-to-4 family mortgage		43,281			3.8	%
Residential line of credit		9,226			2.2	%
Multi-family mortgage		19,005			11.5	%
Commercial real estate:
Owner occupied		60,614			6.6	%
Non-owner occupied		270,552			16.5	%
Consumer and other		593			0.2	%
Total		$	464,832		6.4	%