15. SUBSEQUENT EVENTS

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Paycheck Protection Program

Under the CARES Act, the SBA PPP was created with the intention of providing economic relief to small businesses that have been adversely impacted by COVID-19. The Bank has been participating in the PPP. The Bank has received SBA approval for more than 10,000 loans with a total loan amount of approximately $1.8 billion. The Bank intends to fund PPP loans using a combination of customer deposits, the Federal Reserve’s PPP Liquidity Facility, and other wholesale liquidity sources.

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COVID-19-Related Loan Modifications

The CARES Act permits financial institutions to suspend requirements under GAAP for loan modifications to borrowers affected by COVID-19 that would otherwise be characterized as TDRs. In addition, federal bank regulatory authorities have issued guidance to encourage financial institutions to make loan modifications for borrowers affected by COVID-19 and have assured financial institutions that they will neither receive supervisory criticism for such prudent loan modifications, nor be required by examiners to automatically categorize COVID-19-related loan modifications as TDRs.

The Company has approved loan modifications of this nature of approximately $1.9 billion.

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