Hanmi Financial Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Loans (Tables)

Loans (Tables)

6 Months Ended

Jun. 30, 2020

Loans consisted of the following as of the dates indicated:

	June 30, 2020			December 31, 2019
	(in thousands)
Real estate loans:
Commercial property
Retail	$	808,157		$	869,302
Hospitality		882,812			922,288
Other ⁽¹⁾		1,504,916			1,358,432
Total commercial property loans		3,195,885			3,150,022
Construction		70,357			76,455
Residential property		354,064			402,028
Total real estate loans		3,620,306			3,628,505
Commercial and industrial loans		730,399			484,093
Leases receivable		462,811			483,879
Consumer loans ⁽²⁾		12,126			13,670
Loans receivable		4,825,642			4,610,147
Allowance for credit losses		(86,330	)		(61,408	)
Loans receivable, net	$	4,739,312		$	4,548,739

⁽¹⁾	Includes, among other types, mixed-use, apartment, office, industrial, gas stations, faith-based facilities and warehouse; all other property types represent less than one percent of total loans receivable.

⁽²⁾	Consumer loans include home equity lines of credit of $7.6 million and $8.2 million as of June 30, 2020 and December 31, 2019, respectively.

Activity for SBA Loans Held for Sale

The following is the activity for SBA loans held for sale for the three months ended June 30, 2020 and 2019:

	Real Estate			Commercial and Industrial			Total
	(in thousands)
June 30, 2020
Balance at beginning of period	$	—		$	—		$	—
Originations and transfers		12,661			5,281			17,942
Balance at end of period	$	12,661		$	5,281		$	17,942

June 30, 2019
Balance at beginning of period	$	6,500		$	640		$	7,140
Originations		6,650			7,650			14,300
Sales		(10,474	)		(4,937	)		(15,411	)
Balance at end of period	$	2,676		$	3,353		$	6,029

The following is the activity for SBA loans held for sale for the six months ended June 30, 2020 and 2019:

	Real Estate			Commercial and Industrial			Total
	(in thousands)
June 30, 2020
Balance at beginning of period	$	2,943		$	3,077		$	6,020
Originations and transfers		19,155			10,984			30,139
Sales		(9,432	)		(8,780	)		(18,212	)
Principal payoffs and amortization		(5	)		—			(5	)
Balance at end of period	$	12,661		$	5,281		$	17,942

June 30, 2019
Balance at beginning of period	$	5,194		$	4,196		$	9,390
Originations		15,713			11,810			27,523
Sales		(18,229	)		(12,641	)		(30,870	)
Principal payoffs and amortization		(2	)		(12	)		(14	)
Balance at end of period	$	2,676		$	3,353		$	6,029

Allowance for Credit Losses by Portfolio Segment

The following table details the information on the allowance for credit losses by portfolio segment as of and for the three months ended June 30, 2020 and 2019:

	Real Estate			Commercial and Industrial			Leases Receivable			Consumer			Unallocated			Total
	(in thousands)
June 30, 2020
Balance at beginning of period	$	38,983		$	11,588		$	15,780		$	149		$	—			66,500
Less loans charged off		91			438			1,044			—			—			1,573
Recoveries on loans receivable previously charged off		(98	)		(60	)		(114	)		—			—			(272	)
Provision for credit losses		17,226			2,178			1,674			53			—			21,131
Ending balance	$	56,216		$	13,388		$	16,524		$	202		$	—		$	86,330
Individually evaluated for impairment	$	2,807		$	123		$	2,262		$	2		$	—		$	5,194
Collectively evaluated for impairment	$	53,409		$	13,265		$	14,262		$	200		$	—		$	81,136

Loans receivable	$	3,620,306		$	730,399		$	462,811		$	12,126		$	—		$	4,825,642
Individually evaluated for impairment	$	48,302		$	13,771		$	8,456		$	1,280		$	—		$	71,809
Collectively evaluated for impairment	$	3,572,004		$	716,628		$	454,355		$	10,846		$	—		$	4,753,833

June 30, 2019
Balance at beginning of period	$	18,306		$	8,711		$	5,580		$	89		$	210		$	32,896
Less loans charged off		—			562			974			—			—			1,536
Recoveries on loans receivable previously charged off		(1,133	)		(89	)		(105	)		—			—			(1,327	)
Provision for credit losses		14,565			997			1,357			(10	)		(210	)		16,699
Ending balance	$	34,004		$	9,235		$	6,068		$	79		$	—		$	49,386
Individually evaluated for impairment	$	14,724		$	3,072		$	662		$	1		$	—		$	18,459
Collectively evaluated for impairment	$	19,280		$	6,163		$	5,406		$	78		$	—		$	30,927

Loans receivable	$	3,671,463		$	409,502		$	460,519		$	14,318		$	—		$	4,555,802
Individually evaluated for impairment	$	39,885		$	21,706		$	3,233		$	1,351		$	—		$	66,175
Collectively evaluated for impairment	$	3,631,578		$	387,796		$	457,286		$	12,967		$	—		$	4,489,627

The following table details the information on the allowance for credit losses by portfolio segment as of and for the six months ended June 30, 2020 and 2019:

	Real Estate			Commercial and Industrial			Leases Receivable			Consumer			Unallocated			Total
	(in thousands)
June 30, 2020
Balance at beginning of period	$	36,355		$	16,206		$	8,767		$	80		$	—		$	61,408
Adjustment related to adoption of ASU 2016-13		13,972			(2,497	)		5,902			56			—			17,433
Adjusted balance as of January 1, 2020		50,327			13,709			14,669			136			—			78,841
Less loans charged off		14,233			12,589			2,224			—			—			29,046
Recoveries on loans receivable previously charged off		(156	)		(144	)		(188	)		—			—			(488	)
Provision for credit losses		19,966			12,124			3,891			66			—			36,047
Ending balance	$	56,216		$	13,388		$	16,524		$	202		$	—		$	86,330
Individually evaluated for impairment	$	2,807		$	123		$	2,262		$	2		$	—		$	5,194
Collectively evaluated for impairment	$	53,409		$	13,265		$	14,262		$	200		$	—		$	81,136

Loans receivable	$	3,620,306		$	730,399		$	462,811		$	12,126		$	—		$	4,825,642
Individually evaluated for impairment	$	48,302		$	13,771		$	8,456		$	1,280		$	—		$	71,809
Collectively evaluated for impairment	$	3,572,004		$	716,628		$	454,355		$	10,846		$	—		$	4,753,833

June 30, 2019
Balance at beginning of period	$	18,384		$	7,162		$	6,303		$	98		$	27		$	31,974
Less loans charged off		113			695			1,826			—			—			2,634
Recoveries on loans receivable previously charged off		(1,563	)		(471	)		(196	)		—			—			(2,230	)
Provision for credit losses		14,170			2,297			1,395			(19	)		(27	)		17,816
Ending balance	$	34,004		$	9,235		$	6,068		$	79		$	—		$	49,386
Individually evaluated for impairment	$	14,724		$	3,072		$	662		$	1		$	—		$	18,459
Collectively evaluated for impairment	$	19,280		$	6,163		$	5,406		$	78		$	—		$	30,927

Loans receivable	$	3,671,463		$	409,502		$	460,519		$	14,318		$	—		$	4,555,802
Individually evaluated for impairment	$	39,885		$	21,706		$	3,233		$	1,351		$	—		$	66,175
Collectively evaluated for impairment	$	3,631,578		$	387,796		$	457,286		$	12,967		$	—		$	4,489,627

The table below illustrates the allowance for credit losses by portfolio segment as a percentage of the recorded total allowance for credit losses and as a percentage of the aggregate recorded investment of loans receivable.

	June 30, 2020										December 31, 2019
	Allowance					Total					Allowance					Total
	Amount		Percentage			Loans		Percentage			Amount		Percentage			Loans		Percentage
	(in thousands)
Real estate loans:
Commercial property
Retail	$	7,341		8.5	%	$	808,157		16.7	%	$	4,911		8.0	%	$	869,302		18.9	%
Hospitality		11,984		13.9	%		882,812		18.3	%		6,686		10.9	%		922,288		20.0	%
Other		24,920		28.9	%		1,504,916		31.2	%		8,060		13.1	%		1,358,432		29.4	%
Total commercial property loans		44,245		51.3	%		3,195,885		66.2	%		19,657		32.0	%		3,150,022		68.3	%
Construction		9,331		10.8	%		70,357		1.5	%		15,003		24.4	%		76,455		1.7	%
Residential property		2,640		3.1	%		354,064		7.3	%		1,695		2.8	%		402,028		8.7	%
Total real estate loans		56,216		65.2	%		3,620,306		75.0	%		36,355		59.2	%		3,628,505		78.7	%
Commercial and industrial loans		13,387		15.5	%		730,399		15.1	%		16,206		26.4	%		484,093		10.5	%
Leases receivable		16,525		19.1	%		462,811		9.6	%		8,767		14.3	%		483,879		10.5	%
Consumer loans		202		0.2	%		12,126		0.3	%		80		0.1	%		13,670		0.3	%
Total	$	86,330		100.0	%	$	4,825,642		100.0	%	$	61,408		100.0	%	$	4,610,147		100.0	%

Summary of Amortized Cost Basis of Collateral Dependent Loans By Class of Loans

The following table represents the amortized cost basis of collateral-dependent loans by class of loans as of June 30, 2020, for which repayment is expected to be obtained through the sale of the underlying collateral and any collateral dependent loans that are still accruing but are considered impaired.

	Amortized Cost
June 30, 2020	(in thousands)
Real estate loans:
Commercial property	$	16,796
Construction		25,854
Residential property		2,761
Total real estate loans		45,411
Commercial and industrial loans		288
Consumer Loans		1,208
Total ⁽¹⁾	$	46,907

⁽¹⁾	All loans are secured by real estate, except for one commercial term loan secured by $264,000 in cash.

Credit Quality of Loan Portfolio

The tables below provide a comparison as of June 30, 2020 and December 31, 2019 of the pass/pass-watch, special mention and classified loans, disaggregated by loan segment:

	Pass/Pass- Watch		Special Mention		Classified		Total
	(in thousands)
June 30, 2020
Real estate loans:
Commercial property
Retail	$	800,437	$	1,182	$	6,538	$	808,157
Hospitality		879,131		—		3,681		882,812
Other		1,469,272		6,059		29,585		1,504,916
Total commercial property		3,148,840		7,241		39,804		3,195,885
Construction		44,503		—		25,854		70,357
Residential property		350,520		784		2,760		354,064
Total real estate loans		3,543,863		8,025		68,418		3,620,306
Commercial and industrial loans		702,443		12,423		15,533		730,399
Leases receivable		453,528		—		9,283		462,811
Consumer loans		10,752		686		688		12,126
Total loans receivable	$	4,710,586	$	21,134	$	93,922	$	4,825,642

December 31, 2019
Real estate loans:
Commercial property
Retail	$	859,739	$	2,835	$	6,728	$	869,302
Hospitality		915,834		939		5,515		922,288
Other		1,329,817		7,807		20,809		1,358,432
Total commercial property		3,105,390		11,580		33,052		3,150,022
Construction		36,956		1,613		37,886		76,455
Residential property		398,737		2,512		779		402,028
Total real estate loans		3,541,082		15,705		71,718		3,628,505
Commercial and industrial loans		458,184		10,222		15,687		484,093
Leases receivable		477,977		—		5,902		483,879
Consumer loans		12,247		705		718		13,670
Total loans receivable	$	4,489,491	$	26,632	$	94,025	$	4,610,147

	Term Loans
	Amortized Cost Basis by Origination Year ⁽¹⁾
	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Total
	(in thousands)
June 30, 2020
Commercial property
Risk Rating
Pass / Pass Watch	$	438,577	$	539,598	$	555,748	$	429,415	$	483,511	$	671,096	$	30,895	$	3,148,840
Special Mention		—		2,757		455		2,351		1,271		407		—		7,241
Classified		15,592		1,113		2,965		709		3,992		15,433		—		39,804
Total commercial property		454,169		543,468		559,168		432,475		488,774		686,936		30,895		3,195,885

Construction
Risk Rating
Pass / Pass Watch		18,025		5,633		—		—		20,845		—		—		44,503
Special Mention		—		—		—		—		—		—		—		—
Classified		—		12,808		13,046		—		—		—		—		25,854
Total construction		18,025		18,441		13,046		—		20,845		—		—		70,357

Residential property
Risk Rating
Pass / Pass Watch		274		954		40,468		149,532		100,367		58,925		—		350,520
Special Mention		—		—		—		—		—		784		—		784
Classified		—		—		—		1,890		754		116		—		2,760
Total residential property		274		954		40,468		151,422		101,121		59,825		—		354,064

Total real estate loans
Risk Rating
Pass / Pass Watch		456,876		546,185		596,216		578,947		604,723		730,021		30,895		3,543,863
Special Mention		—		2,757		455		2,351		1,271		1,191		—		8,025
Classified		15,592		13,921		16,011		2,599		4,746		15,549		—		68,418
Total real estate loans		472,468		562,863		612,682		583,897		610,740		746,761		30,895		3,620,306

Commercial and industrial loans:
Risk Rating
Pass / Pass Watch		369,101		124,141		60,742		21,613		5,586		14,952		106,308		702,443
Special Mention		4,281		800		503		78		1,733		1,585		3,443		12,423
Classified		8,969		3,894		568		148		140		1,614		200		15,533
Total commercial and industrial loans		382,351		128,835		61,813		21,839		7,459		18,151		109,951		730,399

Leases receivable:
Risk Rating
Pass / Pass Watch		67,994		203,034		119,213		44,150		18,292		845		—		453,528
Special Mention		—		—		—		—		—		—		—		—
Classified		11		3,554		2,807		1,191		1,299		421		—		9,283
Total leases receivable		68,005		206,588		122,020		45,341		19,591		1,266		—		462,811

Consumer loans:
Risk Rating
Pass / Pass Watch		121		25		15		86		7		2,610		7,888		10,752
Special Mention		—		—		—		—		—		686		—		686
Classified		—		—		661		27		—		—		—		688
Total commercial term loans		121		25		676		113		7		3,296		7,888		12,126

Total loans receivable:
Risk Rating
Pass / Pass Watch		894,092		873,385		776,186		644,796		628,608		748,428		145,091		4,710,586
Special Mention		4,281		3,557		958		2,429		3,004		3,462		3,443		21,134
Classified		24,572		21,369		20,047		3,965		6,185		17,584		200		93,922
Total loans receivable	$	922,945	$	898,311	$	797,191	$	651,190	$	637,797	$	769,474	$	148,734	$	4,825,642

⁽¹⁾	Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision.

	Term Loans
	Amortized Cost Basis by Origination Year ⁽¹⁾
	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Total
	(in thousands)
June 30, 2020
Real estate loans:
Commercial property
Payment performance
Performing	$	453,569	$	543,468	$	559,015	$	432,475	$	488,673	$	681,933	$	30,895	$	3,190,028
Nonperforming		600		—		153		—		101		5,003		—		5,857
Total commercial property		454,169		543,468		559,168		432,475		488,774		686,936		30,895		3,195,885

Construction
Payment performance
Performing		18,025		5,633		—		—		20,845		—		—	$	44,503
Nonperforming		—		12,808		13,046		—		—		—		—		25,854
Total construction		18,025		18,441		13,046		—		20,845		—		—		70,357

Residential property
Payment performance
Performing		274		954		40,468		149,532		100,366		59,677		—		351,271
Nonperforming		—		—		—		1,890		755		148		—		2,793
Total residential property		274		954		40,468		151,422		101,121		59,825		—		354,064

Total real estate loans
Payment performance
Performing		471,868		550,055		599,483		582,007		609,884		741,610		30,895		3,585,802
Nonperforming		600		12,808		13,199		1,890		856		5,151		—		34,504
Total real estate loans		472,468		562,863		612,682		583,897		610,740		746,761		30,895		3,620,306

Commercial and industrial loans:
Payment performance
Performing		373,382		124,940		61,377		21,691		7,459		18,015		109,751		716,615
Nonperforming		8,969		3,895		436		148		—		136		200		13,784
Total commercial and industrial loans		382,351		128,835		61,813		21,839		7,459		18,151		109,951		730,399

Leases receivable:
Payment performance
Performing		67,994		203,034		119,213		44,150		18,292		846		—		453,529
Nonperforming		11		3,554		2,807		1,191		1,299		420		—		9,282
Total leases receivable		68,005		206,588		122,020		45,341		19,591		1,266		—		462,811

Consumer loans:
Payment performance
Performing		121		25		15		86		7		3,296		7,888		11,438
Nonperforming		—		—		661		27		—		—		—		688
Total commercial term loans		121		25		676		113		7		3,296		7,888		12,126

Total loans receivable:
Payment performance
Performing		913,365		878,054		780,088		647,934		635,642		763,767		148,534		4,767,384
Nonperforming		9,580		20,257		17,103		3,256		2,155		5,707		200		58,258
Total loans receivable	$	922,945	$	898,311	$	797,191	$	651,190	$	637,797	$	769,474	$	148,734	$	4,825,642

⁽¹⁾	Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision.

Analysis of Past Due Loans, Disaggregated by Loan Class

The following is an aging analysis of loans, disaggregated by loan class, as of the dates indicated:

	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total		Accruing 90 Days or More Past Due
	(in thousands)
June 30, 2020
Real estate loans:
Commercial property
Retail	$	—	$	—	$	—	$	—	$	808,157	$	808,157	$	—
Hospitality		—		—		—		—		882,812		882,812		—
Other		—		—		1,645		1,645		1,503,271		1,504,916		—
Total commercial property loans		—		—		1,645		1,645		3,194,240		3,195,885		—
Construction		—		—		—		—		70,357		70,357		—
Residential property		2,682		—		2,645		5,327		348,737		354,064		—
Total real estate loans		2,682		—		4,290		6,972		3,613,334		3,620,306		—
Commercial and industrial loans		212		—		12,632		12,844		717,555		730,399		—
Leases receivable		3,684		5,095		5,113		13,893		448,918		462,811		—
Consumer loans		—		—		27		27		12,099		12,126		—
Total loans receivable	$	6,578	$	5,095	$	22,062	$	33,736	$	4,791,906	$	4,825,642	$	—

December 31, 2019
Real estate loans:
Commercial property
Retail	$	6	$	132	$	111	$	249	$	869,053	$	869,302	$	—
Hospitality		907		—		—		907		921,381		922,288		—
Other		51		—		38		89		1,358,344		1,358,432		—
Total commercial property loans		964		132		149		1,245		3,148,778		3,150,022		—
Construction		—		—		—		—		76,455		76,455		—
Residential property		540		1,627		309		2,477		399,551		402,028		—
Total real estate loans		1,504		1,759		458		3,721		3,624,784		3,628,505		—
Commercial and industrial loans		635		133		143		911		483,183		484,093		—
Leases receivable		5,358		2,138		3,493		10,990		472,889		483,879		—
Consumer loans		—		30		—		30		13,639		13,670		—
Total loans receivable	$	7,497	$	4,060	$	4,094	$	15,652	$	4,594,496	$	4,610,147	$	—

Information on Individually Evaluated and Impaired Loans Receivable, Disaggregated by Loan Class

The following tables provide information on individually evaluated loans receivable as of June 30, 2020 and impaired loans receivable as of December 31, 2019 disaggregated by loan class, as of the dates indicated:

	Recorded Investment		Unpaid Principal Balance		With No Related Allowance Recorded		With an Allowance Recorded		Related Allowance
	(in thousands)
June 30, 2020
Real estate loans:
Commercial property
Retail	$	1,355	$	1,355	$	1,355	$	—	$	—
Other		18,299		19,725		17,679		620		20
Total commercial property loans		19,654		21,080		19,034		620		20
Construction		25,854		27,330		13,046		12,808		2,787
Residential property		2,794		2,770		2,761		33		—
Total real estate loans		48,302		51,180		34,841		13,461		2,807
Commercial and industrial loans		13,771		14,589		12,877		893		123
Leases receivable		8,456		8,521		1,797		6,660		2,262
Consumer loans		1,280		1,599		1,208		72		2
Total	$	71,809	$	75,889	$	50,723	$	21,086	$	5,194

December 31, 2019
Real estate loans:
Commercial property
Retail	$	434	$	459	$	111	$	323	$	19
Hospitality		244		400		22		223		24
Other		14,864		15,151		14,696		167		12
Total commercial property loans		15,542		16,010		14,829		713		55
Construction		27,201		28,000		—		27,201		13,973
Residential property		1,124		1,163		1,089		35		—
Total real estate loans		43,867		45,173		15,918		27,949		14,028
Commercial and industrial loans		13,700		14,090		143		13,557		8,885
Leases receivable		5,902		5,909		1,112		4,790		2,863
Consumer loans		1,297		1,588		1,220		77		1
Total	$	64,766	$	66,760	$	18,393	$	46,373	$	25,778

Schedule of Amortized Cost Basis of Loans on Nonaccrual Status and Loans Past Due 90 Days and Still Accruing

The following table represents the amortized cost basis of loans on nonaccrual status and loans past due 90 days and still accruing as of June 30, 2020.

	June 30, 2020
	Nonaccrual Loans With No Allowance for Credit Losses		Nonaccrual Loans With Allowance for Credit Losses		Loans Past Due 90 Days Still Accruing		Total Nonperforming Loans
	(in thousands)
Real estate loans:
Retail	$	1,355	$	—	$	—	$	1,355
Other		3,883		620		—		4,503
Commercial property loans		5,238		620		—		5,858
Construction loans		13,046		12,808		—		25,854
Residential property loans		2,761		33		—		2,794
Total real estate loans		21,045		13,461		—		34,506
Commercial and industrial loans		12,878		907		—		13,785
Leases receivable		1,797		7,488		—		9,285
Consumer loans		688		—		—		688
Total	$	36,408	$	21,856	$	—	$	58,264

Summary of Interest Foregone on Non-accrual Loans

The following is a summary of interest foregone on nonaccrual loans for the periods indicated:

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
	(in thousands)
Interest income that would have been recognized had impaired loans performed in accordance with their original terms	$	1,386		$	1,120		$	2,998		$	2,009
Less: Interest income recognized on impaired loans		(508	)		(696	)		(1,085	)		(1,378	)
Interest foregone on impaired loans	$	878		$	424		$	1,913		$	631

Non-Accrual Loans, Disaggregated by Loan Class

The following table details nonaccrual loans, disaggregated by loan class, as of the dates indicated:

	June 30, 2020		December 31, 2019
	(in thousands)
Real estate loans:
Commercial property
Retail	$	1,355	$	277
Hospitality		—		225
Other		4,503		14,864
Total Commercial property loans		5,858		15,366
Construction		25,854		27,201
Residential property		2,794		1,124
Total real estate loans		34,506		43,691
Commercial and industrial loans		13,785		13,479
Leases receivable		9,285		5,902
Consumer loans		688		689
Total nonaccrual loans	$	58,264	$	63,761

Non-Performing Assets

The following table details nonperforming assets as of the dates indicated:

	June 30, 2020		December 31, 2019
	(in thousands)
Nonaccrual loans	$	58,264	$	63,761
Loans receivable 90 days or more past due and still accruing		—		—
Total nonperforming loans receivable		58,264		63,761
Other real estate owned ("OREO")		148		63
Total nonperforming assets	$	58,412	$	63,824

Troubled Debt Restructurings

The following table details TDRs as of June 30, 2020 and December 31, 2019:

	Nonaccrual TDRs										Accrual TDRs
	Deferral of Principal		Deferral of Principal and/or Interest		Reduction of Principal and/or Interest		Extension of Maturity		Total		Deferral of Principal		Deferral of Principal and/or Interest		Reduction of Principal and/or Interest		Extension of Maturity		Total
June 30, 2020
Real estate loans	$	—	$	1,483	$	13,548	$	618	$	15,649	$	—	$	—	$	—	$	13,796	$	13,796
Commercial and industrial loans		—		181		247		296		724		—		—		51		85		136
Consumer loans		661		—		—		—		661		521		—		71		—		592
Total	$	661	$	1,664	$	13,795	$	914	$	17,034	$	521	$	—	$	122	$	13,881	$	14,524

December 31, 2019
Real estate loans	$	—	$	132	$	27,740	$	13,926	$	41,798	$	—	$	—	$	—	$	—	$	—
Commercial and industrial loans		—		153		12,527		312		12,991		—		36		71		114		222
Consumer loans		689		—		—		—		689		531		—		77		—		608
Total	$	689	$	285	$	40,266	$	14,238	$	55,478	$	531	$	36	$	148	$	114	$	830

Summary of Loans by Class Modified as Troubled Debt Restructurings

The following table presents the number of loans by class modified as troubled debt restructurings that occurred during the periods indicated, with their pre- and post-modification recorded amounts.

	Three Months ended						Twelve Months ended
	June 30, 2020						December 31, 2019
	Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	(in thousands except for number of loans)
Real estate loans		2	$	2,002	$	1,973		5	$	40,743	$	41,798
Commercial and industrial loans		—		—		—		2		12,779		12,562
Consumer loans		—		—		—		1		549		531
Total		2	$	2,002	$	1,973		8	$	54,071	$	54,891

	Six Months ended						Twelve Months ended
	June 30, 2020						December 31, 2019
	Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Loans		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
	(in thousands except for number of loans)
Real estate loans		2	$	2,002	$	1,973		5	$	40,743	$	41,798
Commercial and industrial loans		—		—		—		2		12,779		12,562
Consumer loans		—		—		—		1		549		531
Total		2	$	2,002	$	1,973		8	$	54,071	$	54,891