Loans and allowance for credit losses

12 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Loans and allowance for credit losses

Loans and allowance for credit losses:

Loans outstanding as of December 31, 2021 and 2020, by class of financing receivable are as follows:

	December 31,
	2021		2020
Commercial and industrial (1)	$	1,290,565	$	1,346,122
Construction	1,327,659		1,222,220
Residential real estate:
1-to-4 family mortgage	1,270,467		1,089,270
Residential line of credit	383,039		408,211
Multi-family mortgage	326,551		175,676
Commercial real estate:
Owner occupied	951,582		924,841
Non-owner occupied	1,730,165		1,598,979
Consumer and other	324,634		317,640
Gross loans	7,604,662		7,082,959
Less: Allowance for credit losses	(125,559)		(170,389)
Net loans	$	7,479,103	$	6,912,570

(1)Includes $3,990 and $212,645 of loans originated as part of the Paycheck Protection Program as of December 31, 2021 and 2020, respectively. 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 December 31, 2021 and 2020, $1,136,294 and $1,248,857, respectively, of qualifying residential mortgage loans (including loans held for sale) and $1,581,673 and $1,532,749, 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 December 31, 2021 and 2020, qualifying loans of $2,440,097 and $2,463,281, respectively, were pledged to the Federal Reserve Bank under the Borrower-in-Custody program.

The components of amortized cost for loans on the consolidated balance sheet excludes accrued interest receivable as the Company presents accrued interest receivable separately on the balance sheet. As of December 31, 2021 and 2020, accrued interest receivable on loans held for investment was $31,676 and $38,316, respectively.

Allowance for Credit Losses

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. 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; and loans with other unique risk characteristics. 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 and TDRs use the same methodology. 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 Company performed qualitative evaluations within 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. The decrease in estimated required reserve during the year ended December 31, 2021 was a result of improving macroeconomic variables incorporated into the Company's reasonable and supportable forecasts when compared to both December 31, 2021 and 2020.

The following provide the changes in the allowance for credit losses by class of financing receivable for the years ended December 31, 2021, 2020, and 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
Year Ended December 31, 2021
Beginning balance - December 31, 2020	$	14,748	$	58,477	$	19,220	$	10,534	$	7,174	$	4,849	$	44,147	$	11,240	$	170,389
Provision for credit losses	4,178		(29,874)		(87)		(4,728)		(197)		7,588		(16,813)		938		(38,995)
Recoveries of loans previously charged-off	861		3		125		115		—		156		—		773		2,033
Loans charged off	(4,036)		(30)		(154)		(18)		(1)		—		(1,566)		(2,063)		(7,868)
Ending balance - December 31, 2021	$	15,751	$	28,576	$	19,104	$	5,903	$	6,976	$	12,593	$	25,768	$	10,888	$	125,559

	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
Year Ended December 31, 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	13,830		40,807		6,408		5,649		5,506		(1,739)		17,789		6,356		94,606
Recoveries of loans previously charged-off	1,712		205		122		125		—		83		—		756		3,003
Loans charged off	(11,735)		(18)		(403)		(22)		—		(304)		(711)		(2,112)		(15,305)
Initial allowance on loans purchased with deteriorated credit quality	754		5,606		1,640		572		784		659		15,442		43		25,500
Ending balance -    December 31, 2020	$	14,748	$	58,477	$	19,220	$	10,534	$	7,174	$	4,849	$	44,147	$	11,240	$	170,389

	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
Year Ended December 31, 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	2,251		454		(175)		112		(22)		869		484		3,080		7,053
Recoveries of loans previously charged-off	136		11		79		138		—		108		—		634		1,106
Loans charged off	(2,930)		—		(220)		(309)		—		—		(12)		(2,481)		(5,952)
Ending balance - December 31, 2019	$	4,805	$	10,194	$	3,112	$	752	$	544	$	4,109	$	4,621	$	3,002	$	31,139

Credit Quality

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.

The Company uses the following definitions for risk ratings:

Pass.	Loans rated Pass include those that are adequately collateralized performing loans which management believes do not have conditions that have occurred or may occur that would result in the loan being downgraded into an inferior category. The Pass category also includes loans rated as Watch, which 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.
Special Mention.	Loans rated Special Mention are those that have potential weakness that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution’s credit position at some future date. Management does not believe there will be a loss of principal or interest. These loans require intensive servicing and may possess more than normal credit risk.
Classified.	Loans included in the Classified category include loans rated as Substandard and Doubtful. Loans rated as Substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Also included in this category are loans classified as Doubtful, which have all the weaknesses inherent in those classified as Substandard, with the added characteristic that the weakness or weaknesses make collection or liquidation in full, based on currently existing facts, conditions, and values, highly questionable and improbable. The total amortized cost of loans rated as Doubtful were insignificant for all periods presented.

Risk ratings are updated on an ongoing basis and are subject to change by continuous loan monitoring processes.

The following tables present the credit quality of our loan portfolio by year of origination as of December 31, 2021 and 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 tables below.

As of December 31, 2021
	Term Loans
	Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
Commercial and industrial
Pass	$	273,232	$	95,279	$	140,938	$	52,162	$	33,997	$	57,020	$	596,667	$	1,249,295
Special Mention	79		9		949		632		3		1,519		12,367		15,558
Classified	918		2,391		2,376		3,089		3,370		6,425		7,143		25,712
Total	274,229		97,679		144,263		55,883		37,370		64,964		616,177		1,290,565
Construction
Pass	677,258		280,828		135,768		23,916		15,313		67,818		117,176		1,318,077
Special Mention	62		184		—		—		1,208		1,384		—		2,838
Classified	—		—		2,922		2,882		3		737		200		6,744
Total	677,320		281,012		138,690		26,798		16,524		69,939		117,376		1,327,659
Residential real estate:
1-to-4 family mortgage
Pass	519,946		202,299		119,915		99,479		107,214		194,088		—		1,242,941
Special Mention	736		1,423		877		406		1,166		1,609		—		6,217
Classified	2,083		4,703		1,960		2,707		2,472		7,384		—		21,309
Total	522,765		208,425		122,752		102,592		110,852		203,081		—		1,270,467
Residential line of credit
Pass	—		—		—		—		—		—		377,989		377,989
Special Mention	—		—		—		—		—		—		343		343
Classified	—		—		—		—		—		—		4,707		4,707
Total	—		—		—		—		—		—		383,039		383,039
Multi-family mortgage
Pass	166,576		32,242		64,345		7,124		5,602		38,526		10,891		325,306
Special Mention	—		—		—		—		—		—		—		—
Classified	—		—		—		—		—		1,245		—		1,245
Total	166,576		32,242		64,345		7,124		5,602		39,771		10,891		326,551
Commercial real estate:
Owner occupied
Pass	170,773		131,471		174,257		83,698		69,939		236,998		57,123		924,259
Special Mention	—		—		1,502		3,541		885		2,555		213		8,696
Classified	—		—		3,102		768		3,295		9,616		1,846		18,627
Total	170,773		131,471		178,861		88,007		74,119		249,169		59,182		951,582
Non-owner occupied
Pass	462,478		154,048		165,917		264,855		170,602		414,859		46,541		1,679,300
Special Mention	—		—		3,747		3,388		—		969		—		8,104
Classified	—		—		1,898		23,849		1,506		15,508		—		42,761
Total	462,478		154,048		171,562		292,092		172,108		431,336		46,541		1,730,165

As of December 31, 2021
	Term Loans
	Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
Consumer and other loans
Pass	83,022		55,343		38,495		33,257		21,756		73,016		14,089		318,978
Special Mention	—		—		9		—		—		311		—		320
Classified	87		125		322		988		961		2,417		436		5,336
Total	83,109		55,468		38,826		34,245		22,717		75,744		14,525		324,634
Total Loans
Pass	2,353,285		951,510		839,635		564,491		424,423		1,082,325		1,220,476		7,436,145
Special Mention	877		1,616		7,084		7,967		3,262		8,347		12,923		42,076
Classified	3,088		7,219		12,580		34,283		11,607		43,332		14,332		126,441
Total	$	2,357,250	$	960,345	$	859,299	$	606,741	$	439,292	$	1,134,004	$	1,247,731	$	7,604,662

As of December 31, 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	$	339,074	$	185,636	$	70,549	$	59,917	$	37,573	$	42,685	$	540,960	$	1,276,394
Special Mention	231		824		561		445		915		2,580		24,826		30,382
Classified	2,501		2,688		11,227		4,425		6,582		1,277		10,646		39,346
Total	341,806		189,148		82,337		64,787		45,070		46,542		576,432		1,346,122
Construction
Pass	461,715		390,443		86,490		52,942		40,907		62,890		112,004		1,207,391
Special Mention	469		1,485		2,197		1,221		729		13		—		6,114
Classified	573		1,755		3,178		141		—		3,068		—		8,715
Total	462,757		393,683		91,865		54,304		41,636		65,971		112,004		1,222,220
Residential real estate:
1-to-4 family mortgage
Pass	283,107		176,711		164,499		157,731		111,194		162,051		—		1,055,293
Special Mention	1,423		1,829		1,209		753		721		3,865		—		9,800
Classified	448		1,428		3,806		5,473		3,622		9,400		—		24,177
Total	284,978		179,968		169,514		163,957		115,537		175,316		—		1,089,270
Residential line of credit
Pass	—		—		—		—		—		—		400,206		400,206
Special Mention	—		—		—		—		—		—		2,653		2,653
Classified	—		—		—		—		—		—		5,352		5,352
Total	—		—		—		—		—		—		408,211		408,211
Multi-family mortgage
Pass	29,006		13,446		11,843		46,561		28,330		35,339		11,094		175,619
Special Mention	—		—		—		—		—		—		—		—
Classified	—		—		—		—		—		57		—		57
Total	29,006		13,446		11,843		46,561		28,330		35,396		11,094		175,676
Commercial real estate:
Owner occupied
Pass	140,904		179,500		97,577		94,659		76,539		224,108		53,451		866,738
Special Mention	967		1,356		4,251		16,173		6,101		2,466		230		31,544
Classified	44		1,785		2,423		6,074		274		11,226		4,733		26,559
Total	141,915		182,641		104,251		116,906		82,914		237,800		58,414		924,841
Non-owner occupied
Pass	166,962		229,442		342,640		221,149		290,163		272,184		38,820		1,561,360
Special Mention	—		1,500		6,672		—		207		8,445		—		16,824
Classified	—		2,210		1,502		—		—		17,083		—		20,795
Total	166,962		233,152		350,814		221,149		290,370		297,712		38,820		1,598,979
Consumer and other loans
Pass	89,625		52,839		39,725		27,201		43,503		37,673		14,817		305,383
Special Mention	281		797		1,588		468		526		1,364		11		5,035
Classified	151		565		1,434		1,161		935		2,308		668		7,222
Total	90,057		54,201		42,747		28,830		44,964		41,345		15,496		317,640

As of December 31, 2020
	Term Loans
	Amortized Cost Basis by Origination Year
	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Total
Total Loans
Pass	1,510,393		1,228,017		813,323		660,160		628,209		836,930		1,171,352		6,848,384
Special Mention	3,371		7,791		16,478		19,060		9,199		18,733		27,720		102,352
Classified	3,717		10,431		23,570		17,274		11,413		44,419		21,399		132,223
Total	$	1,517,481	$	1,246,239	$	853,371	$	696,494	$	648,821	$	900,082	$	1,220,471	$	7,082,959

Nonaccrual and Past Due Loans

Nonperforming loans include loans that are no longer accruing interest (nonaccrual loans) and loans past due ninety or more days and still accruing interest.

The following tables represent an analysis of the aging by class of financing receivable as of December 31, 2021 and 2020:

December 31, 2021	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	$	1,030	$	63	$	1,520	$	1,287,952	$	1,290,565
Construction	4,852		718		3,622		1,318,467		1,327,659
Residential real estate:
1-to-4 family mortgage	11,007		9,363		4,593		1,245,504		1,270,467
Residential line of credit	319		—		1,736		380,984		383,039
Multi-family mortgage	—		—		49		326,502		326,551
Commercial real estate:
Owner occupied	1,417		—		6,710		943,455		951,582
Non-owner occupied	427		—		14,084		1,715,654		1,730,165
Consumer and other	7,398		1,591		3,254		312,391		324,634
Total	$	26,450	$	11,735	$	35,568	$	7,530,909	$	7,604,662

December 31, 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	$	3,297	$	330	$	16,005	$	1,326,490	$	1,346,122
Construction	7,607		573		4,053		1,209,987		1,222,220
Residential real estate:
1-to-4 family mortgage	7,058		10,470		5,923		1,065,819		1,089,270
Residential line of credit	3,551		239		1,757		402,664		408,211
Multi-family mortgage	—		57		—		175,619		175,676
Commercial real estate:
Owner occupied	98		—		7,948		916,795		924,841
Non-owner occupied	915		—		12,471		1,585,593		1,598,979
Consumer and other	4,469		2,027		2,603		308,541		317,640
Total	$	26,995	$	13,696	$	50,760	$	6,991,508	$	7,082,959

The following tables provide the amortized cost basis of loans on non-accrual status, as well as any related allowance and interest income as of and for the year ended December 31, 2021 and 2020 by class of financing receivable.

December 31, 2021	Non-accrual with no related allowance		Non-accrual with related allowance		Related allowance		Year to date Interest Income
Commercial and industrial	$	1,085	$	435	$	6	$	1,371
Construction	2,882		740		99		156
Residential real estate:
1-to-4 family mortgage	378		4,215		60		314
Residential line of credit	797		939		11		289
Multi-family mortgage	—		49		2		3
Commercial real estate:
Owner occupied	5,346		1,364		206		536
Non-owner occupied	13,898		186		7		486
Consumer and other	—		3,254		164		245
Total	$	24,386	$	11,182	$	555	$	3,400

December 31, 2020	Non-accrual with no related allowance		Non-accrual with related allowance		Related allowance		Year to date Interest Income
Commercial and industrial	$	13,960	$	2,045	$	383	$	325
Construction	3,061		992		131		69
Residential real estate:
1-to-4 family mortgage	3,048		2,875		84		22
Residential line of credit	854		903		31		72
Commercial real estate:
Owner occupied	7,172		776		63		89
Non-owner occupied	4,566		7,905		1,711		215
Consumer and other	—		2,603		147		24
Total	$	32,661	$	18,099	$	2,550	$	816

Accrued interest receivable written off as an adjustment to interest income amounted to $804 and $627 for the years ended December 31, 2021 and 2020, respectively.

Troubled debt restructurings

As of December 31, 2021 and 2020, the Company had a recorded investment in TDRs of $32,435 and $15,988, 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. Of these loans, $11,084 and $8,279 were classified as non-accrual loans as of December 31, 2021 and 2020, respectively. The Company has calculated $1,245 and $310 in allowances for credit losses on TDRs as of December 31, 2021 and 2020, respectively. There were no significant unfunded loan commitments to extend additional funds on troubled debt restructurings as of December 31, 2021 or 2020.

The following tables present the financial effect of TDRs recorded during the periods indicated.

Year Ended December 31, 2021	Number of loans	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment		Charge offs and specific reserves
Commercial and industrial	8	$	15,430	$	15,430	$	446
Commercial real estate:
Owner occupied	7	5,209		5,209		—
Non-owner occupied	1	11,997		11,997		—
Residential real estate:
1-to-4 family mortgage	3	945		945		—
Residential line of credit	3	485		485		—
Multi-family mortgage	1	49		49		—
Total	23	$	34,115	$	34,115	$	446

Year Ended December 31, 2020	Number of loans	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment		Charge offs and specific reserves
Commercial and industrial	5	$	2,257	$	2,257	$	—
Commercial real estate:
Owner occupied	7	2,794		2,794		—
Non-owner occupied	2	3,752		3,752		—
Residential real estate:
1-4 family mortgage	3	618		618		—
Residential line of credit	1	95		95		—
Total	18	$	9,516	$	9,516	$	—

Year Ended December 31, 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	2	1,085		1,085		—
Commercial real estate:
Owner occupied	2	1,494		1,495		—
Non-owner occupied	1	1,366		1,366		106
Residential real estate:
1-4 family mortgage	2	175		175		—
Residential line of credit	2	333		333		9
Total	12	$	7,657	$	7,658	$	115

Troubled debt restructurings for which there was a payment default within twelve months following the modification totaled $304 during the year ended December 31, 2021. There were no loans modified as troubled debt restructurings for which there was a payment default within twelve months following the modification during the years ended December 31, 2020 or 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 years ended December 31, 2021, 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.

Collateral Dependent Loans

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 tables present the loans and the corresponding individually assessed allowance for credit losses by class of financing receivable. Significant changes in individually assessed reserves are due to changes in the valuation of the underlying collateral in addition to changes in accrual and past due status.

	December 31, 2021
	Type of Collateral
	Real Estate		Financial Assets and Equipment		Total		Individually assessed allowance for credit loss
Commercial and industrial	$	799	$	1,090	$	1,889	$	—
Construction	3,580		—		3,580		92
Residential real estate:
1-to-4 family mortgage	338		—		338		—
Residential line of credit	1,400		—		1,400		10
Commercial real estate:
Owner occupied	8,117		71		8,188		200
Non-owner occupied	13,899		—		13,899		—
Consumer and other	25		—		25		1
Total	$	28,158	$	1,161	$	29,319	$	303

	December 31, 2020
	Type of Collateral
	Real Estate		Financial Assets and Equipment		Total		Individually assessed allowance for credit loss
Commercial and industrial	$	—	$	1,728	$	1,728	$	117
Construction	3,877		—		3,877		—
Residential real estate:
1-to-4 family mortgage	226		—		226		—
Residential line of credit	1,174		—		1,174		9
Commercial real estate:
Owner occupied	3,391		—		3,391		30
Non-owner occupied	8,164		—		8,164		1,531
Total	$	16,832	$	1,728	$	18,560	$	1,687

Deferral Program included in COVID-19 Relief

The following table outlines the Company's recorded investment and percentage of loans held for investment by class of financing receivable for executed deferrals remaining on deferral status as of December 31, 2020, in connection with Company's COVID-19 relief programs. There were no such loans outstanding as of December 31, 2021. These deferrals typically ranged from sixty to ninety days per deferral and the majority were not considered TDRs under the interagency regulatory guidance or CARES Act, issued in March 2020. As of December 31, 2021 and 2020, the Company had a recorded investment in loans totaling $1,193,088 and $1,399,088 previously deferred that were no longer in deferral status.

	December 31, 2020
			% of Loans
Commercial and industrial	$	7,118	0.5	%
Construction	1,918		0.2	%
Residential real estate:
1-to-4 family mortgage	19,201		1.8	%
Residential line of credit	204		—	%
Multi-family mortgage	3,305		1.9	%
Commercial real estate:
Owner occupied	19,815		2.1	%
Non-owner occupied	139,590		8.7	%
Consumer and other	11,366		3.6	%
Total	$	202,517	2.9	%

Impaired Loans

The following disclosure is presented in accordance with GAAP in effect prior to the adoption of CECL. The Company has included this disclosure to address the year ended December 31, 2019.

Average recorded investment on impaired loans recognized in conformity with ASC 310 and interest income on a cash basis recognized during the year ended December 31, 2019, segregated by class, were as follows:

	December 31, 2019
	Average recorded investment		Interest income recognized (cash basis)
With a related allowance recorded:
Commercial and industrial	$	3,349	$	474
Residential real estate:
1-to-4 family mortgage	205		13
Commercial real estate:
Owner occupied	658		27
Non-owner occupied	6,196		109
Total	$	10,568	$	624
With no related allowance recorded:
Commercial and industrial	$	2,088	$	201
Construction	1,641		167
Residential real estate:
1-to-4 family mortgage	963		68
Residential line of credit	252		1
Commercial real estate:
Owner occupied	2,143		133
Non-owner occupied	1,049		—
Consumer and other	61		5
Total	$	8,197	$	575
Total impaired loans	$	18,765	$	1,199

Purchased Credit Impaired Loans

The following disclosure is presented in accordance with GAAP in effect prior to the adoption of CECL. The Company has included this disclosure to address the year ended December 31, 2019.

The following table presents changes in the value of the accretable yield for PCI loans for the year ended December 31, 2019.

	Year Ended December 31, 2019
Balance at the beginning of period	$	(16,587)
Additions through business combinations	(1,167)
Principal reductions and other reclassifications from nonaccretable difference	61
Accretion	7,003
Changes in expected cash flows	(360)
Balance at end of period	$	(11,050)

Interest income, 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 $7,003 was recognized on PCI loans during the year ended December 31, 2019. 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 $8,556 for the year ended December 31, 2019.