The Company has certain lending policies and procedures in place that are designed to minimize the level of risk within the loan portfolio. Diversification of the loan portfolio manages the risk associated with fluctuations in economic conditions. Authority levels are established for the extension of credit to ensure consistency throughout the Company. It is necessary that policies, processes, and practices implemented to control the risks of individual credit transactions and portfolio segments are sound and adhered to. The Company maintains an independent loan review department that reviews and validates the risk assessment on a continual basis. Management regularly evaluates the results of the loan reviews. The loan review process complements and reinforces the risk identification and assessment decisions made by lenders and credit personnel, as well as the Company’s policies and procedures.

Commercial and industrial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably and prudently expand its business. Commercial loans are made based on the identified cash flows of the borrower and on the underlying collateral provided by the borrower. The cash flows of the borrower, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts from its customers.

Specialty lending loans include Asset-based loans, which are offered primarily in the form of revolving lines of credit to commercial borrowers that do not generally qualify for traditional bank financing. Asset-based loans are underwritten based primarily upon the value of the collateral pledged to secure the loan, rather than on the borrower’s general financial condition. The Company utilizes pre-loan due diligence techniques, monitoring disciplines, and loan management practices common within the asset-based lending industry to underwrite loans to these borrowers.

Commercial real estate loans are subject to underwriting standards and processes similar to commercial loans, in addition to those of real estate loans. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts, and the repayment of these loans is largely dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. The Company requires that an appraisal of the collateral be made at origination and on an as-needed basis, in conformity with current market conditions and regulatory requirements. The underwriting standards address both owner and non-owner-occupied real estate. Also included in Commercial real estate are Construction loans that are underwritten using feasibility studies, independent appraisal reviews, sensitivity analysis or absorption and lease rates, and financial analysis of the developers and property owners. Construction loans are based upon estimates of costs and value associated with the complete project. Construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Sources of repayment for these types of loans may be pre-committed permanent loans, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their repayment being sensitive to interest rate changes, governmental regulation of real property, economic conditions, completion of the construction project, and the availability of long-term financing.

Consumer real estate loans, including residential real estate and home equity loans, are underwritten based on the borrower’s loan-to-value percentage, collection remedies, and overall credit history.

Consumer loans are underwritten based on the borrower’s repayment ability. The Company monitors delinquencies on all of its consumer loans and leases. The underwriting and review practices combined with the relatively small loan amounts that are spread across many individual borrowers, minimizes risk. Consumer loans and leases that are 90 days past due or more are considered non-performing.

Credit cards include both commercial and consumer credit cards. Commercial credit cards are generally unsecured and are underwritten with criteria similar to commercial loans, including an analysis of the borrower’s cash flow, available business capital, and overall creditworthiness of the borrower. Consumer credit cards are underwritten based on the borrower’s repayment ability. The Company monitors delinquencies on all of its consumer credit cards and periodically reviews the distribution of credit scores relative to historical periods to monitor credit risk on its consumer credit card loans.

Credit risk is a potential loss resulting from nonpayment of either the primary or secondary exposure. Credit risk is mitigated with formal risk management practices and a thorough initial credit-granting process including consistent underwriting standards and approval process. Control factors or techniques to minimize credit risk include knowing the client, understanding total exposure, analyzing the client and debtor’s financial capacity, and monitoring the client’s activities. Credit risk and portions of the portfolio risk are managed through concentration considerations, average risk ratings, and other aggregate characteristics.

The Company sold consumer real estate loans with proceeds of $49.7 million and $33.7 million in the secondary market without recourse during the nine months ended September 30, 2023 and 2022, respectively.

The Company has ceased the recognition of interest on loans with a carrying value of $17.0 million and $19.3 million at September 30, 2023 and December 31, 2022, respectively. Restructured loans totaled $3.2 million and $5.2 million at September 30, 2023 and December 31, 2022, respectively. Loans 90 days past due and still accruing interest amounted to $3.0 million and $1.6 million at September 30, 2023 and December 31, 2022, respectively. All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. There was an insignificant amount of interest reversed related to loans on nonaccrual during 2023 and 2022. Nonaccrual loans with no related allowance for credit losses totaled $14.6 million and $16.7 million at September 30, 2023 and December 31, 2022, respectively.

The following tables provide a summary of the amortized cost balance of each of the Company’s loan classes disaggregated by collateral type and origination year as of September 30, 2023 and December 31, 2022, as well as the gross charge-offs by loan class and origination year for the nine months ended September 30, 2023 (in thousands):


	September 30, 2023
	Amortized Cost Basis by Origination Year - Term Loans
Loan Segment and Type	2023		2022		2021		2020		2019		Prior		Amortized Cost - Revolving Loans		Amortized Cost - Revolving Loans Converted to Term Loans		Total
Commercial and industrial:
Equipment/Accounts Receivable/Inventory	$	1,250,651	$	1,882,547	$	1,222,414	$	455,865	$	225,610	$	102,859	$	4,457,511	$	8,011	$	9,605,468
Agriculture		11,901		5,983		4,234		1,189		1,630		280		141,554		325		167,096
Overdrafts		—		—		—		—		—		—		17,121		—		17,121
Total Commercial and industrial		1,262,552		1,888,530		1,226,648		457,054		227,240		103,139		4,616,186		8,336		9,789,685
Current period charge-offs		41		—		883		—		—		456		3,347		—		4,727
Specialty lending:
Asset-based lending		14,344		17,221		36,530		35,164		—		—		419,160		—		522,419
Total Specialty lending		14,344		17,221		36,530		35,164		—		—		419,160		—		522,419
Current period charge-offs		—		—		—		—		—		—		762		—		762
Commercial real estate:
Owner-occupied		243,215		658,830		513,044		344,082		162,097		225,211		5,211		—		2,151,690
Non-owner-occupied		497,181		988,386		804,805		518,112		303,913		218,155		33,455		—		3,364,007
Farmland		56,787		76,085		44,625		199,827		22,252		20,649		94,270		—		514,495
5+ Multi-family		831		27,690		208,264		32,209		18,363		5,697		8,214		—		301,268
1-4 Family construction		63,788		40,097		—		—		—		—		5,275		—		109,160
General construction		347,154		1,205,620		694,726		4,262		663		135		85,458		—		2,338,018
Total Commercial real estate		1,208,956		2,996,708		2,265,464		1,098,492		507,288		469,847		231,883		—		8,778,638
Current period charge-offs		—		—		—		—		—		21		—		—		21
Consumer real estate:
HELOC		—		651		—		517		52		5,145		342,092		1,121		349,578
First lien: 1-4 family		353,966		591,744		697,900		563,668		161,053		170,537		2		—		2,538,870
Junior lien: 1-4 family		7,419		12,516		7,569		4,318		2,225		1,857		163		—		36,067
Total Consumer real estate		361,385		604,911		705,469		568,503		163,330		177,539		342,257		1,121		2,924,515
Current period charge-offs		—		22		—		—		11		1,120		—		—		1,153
Consumer:
Revolving line		—		—		—		—		—		—		53,858		30		53,888
Auto		9,408		6,643		4,556		2,657		1,422		200		—		—		24,886
Other		4,881		23,088		26,433		622		454		1,256		8,213		—		64,947
Total Consumer		14,289		29,731		30,989		3,279		1,876		1,456		62,071		30		143,721
Current period charge-offs		67		11		20		2		6		15		813		—		934
Credit cards:
Consumer		—		—		—		—		—		—		198,508		—		198,508
Commercial		—		—		—		—		—		—		252,056		—		252,056
Total Credit cards		—		—		—		—		—		—		450,564		—		450,564
Current period charge-offs		—		—		—		—		—		—		6,181		—		6,181
Leases and other:
Leases		—		—		—		—		610		1,123		—		—		1,733
Other		30,836		94,246		17,419		17,395		29,916		14,000		66,580		22		270,414
Total Leases and other		30,836		94,246		17,419		17,395		30,526		15,123		66,580		22		272,147
Current period charge-offs		—		—		—		—		—		—		—		—		—
Total loans	$	2,892,362	$	5,631,347	$	4,282,519	$	2,179,887	$	930,260	$	767,104	$	6,188,701	$	9,509	$	22,881,689


	December 31, 2022
	Amortized Cost Basis by Origination Year - Term Loans
Loan Segment and Type	2022		2021		2020		2019		2018		Prior		Amortized Cost - Revolving Loans		Amortized Cost - Revolving Loans Converted to Term Loans		Total
Commercial and industrial:
Equipment/Accounts Receivable/Inventory	$	2,140,609	$	1,562,527	$	642,649	$	267,444	$	96,916	$	86,787	$	4,223,358	$	3,926	$	9,024,216
Agriculture		13,630		5,415		2,046		1,985		396		541		149,266		562		173,841
Overdrafts		—		—		—		—		—		—		7,929		—		7,929
Total Commercial and industrial		2,154,239		1,567,942		644,695		269,429		97,312		87,328		4,380,553		4,488		9,205,986
Specialty lending:
Asset-based lending		18,084		55,469		36,040		—		—		—		493,113		—		602,706
Total Specialty lending		18,084		55,469		36,040		—		—		—		493,113		—		602,706
Commercial real estate:
Owner-occupied		656,860		593,861		388,519		180,786		136,499		167,628		8,685		—		2,132,838
Non-owner-occupied		1,128,978		855,508		568,489		368,203		64,915		229,826		28,679		—		3,244,598
Farmland		94,989		47,092		220,796		24,057		15,963		24,162		121,054		—		548,113
5+ Multi-family		30,920		35,869		68,996		18,978		1,334		5,776		4,908		—		166,781
1-4 Family construction		61,943		15,217		—		—		—		—		19		—		77,179
General construction		628,820		719,437		43,166		15,492		—		395		39,267		—		1,446,577
Total Commercial real estate		2,602,510		2,266,984		1,289,966		607,516		218,711		427,787		202,612		—		7,616,086
Consumer real estate:
HELOC		237		—		618		224		654		5,389		339,066		981		347,169
First lien: 1-4 family		628,703		748,362		607,105		173,466		45,907		140,443		12		—		2,343,998
Junior lien: 1-4 family		13,490		8,445		5,107		2,529		940		1,504		87		—		32,102
Total Consumer real estate		642,430		756,807		612,830		176,219		47,501		147,336		339,165		981		2,723,269
Consumer:
Revolving line		467		584		—		—		—		—		58,133		1,403		60,587
Auto		9,124		6,543		4,455		2,743		335		159		—		—		23,359
Other		26,306		27,751		1,096		876		1,133		591		3,967		—		61,720
Total Consumer		35,897		34,878		5,551		3,619		1,468		750		62,100		1,403		145,666
Credit cards:
Consumer		—		—		—		—		—		—		200,348		—		200,348
Commercial		—		—		—		—		—		—		231,324		—		231,324
Total Credit cards		—		—		—		—		—		—		431,672		—		431,672
Leases and other:
Leases		—		—		—		712		—		1,224		—		—		1,936
Other		125,095		34,282		22,552		32,055		17,764		1,066		71,054		—		303,868
Total Leases and other		125,095		34,282		22,552		32,767		17,764		2,290		71,054		—		305,804
Total loans	$	5,578,255	$	4,716,362	$	2,611,634	$	1,089,550	$	382,756	$	665,491	$	5,980,269	$	6,872	$	21,031,189

Accrued interest on loans totaled $115.7 million and $90.6 million as of September 30, 2023 and December 31, 2022, respectively, and is included in the Accrued income line on the Company’s Consolidated Balance Sheets. The total amount of accrued interest is excluded from the amortized cost basis of loans presented above. Further, the Company has elected not to measure an allowance for credit losses for accrued interest receivable.

As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including trends related to the risk grading of specified classes of loans, net charge-offs, non-performing loans, and general economic conditions.

The Company utilizes a risk grading matrix to assign a rating to each of its commercial, commercial real estate, and construction real estate loans. Changes in credit risk are monitored on a continuous basis and changes in risk ratings are made when identified. The loan ratings are summarized into the following categories: Non-watch list, Watch, Special Mention, Substandard, and Doubtful. Any loan not classified in one of the categories described below is considered to be a Non-watch list loan. A description of the general characteristics of the loan rating categories is as follows:

A discussion of the credit quality indicators that impact each type of collateral securing Commercial and industrial loans is included below:

Equipment, accounts receivable, and inventory General commercial and industrial loans are secured by working capital assets and non-real estate assets. The general purpose of these loans is for financing capital expenditures and current operations for commercial and industrial entities. These assets are short-term in nature. In the case of accounts receivable and inventories, the repayment of debt is reliant upon converting assets into cash or through goods and services being sold and collected. Collateral-based risk is due to aged short-term assets, which can be indicative of underlying issues with the borrower and lead to the value of the collateral being overstated.

Agriculture Agricultural loans are secured by non-real estate agricultural assets. These include shorter-term assets such as equipment, crops, and livestock. The risks associated with loans to finance crops or livestock include the borrower’s ability to successfully raise and market the commodity. Adverse weather conditions and other natural perils can dramatically affect farmers’ or ranchers’ production and ability to service debt. Volatile commodity prices present another significant risk for agriculture borrowers. Market price volatility and production cost volatility can affect both revenues and expenses.

Overdrafts Commercial overdrafts are typically short-term and unsecured. Some commercial borrowers tie their overdraft obligation to their line of credit, so any draw on the line of credit will satisfy the overdraft.

Based on the factors noted above for each type of collateral, the Company assigns risk ratings to borrowers based on their most recently assessed financial position.

The following tables provide a summary of the amortized cost balance by collateral type and risk rating as of September 30, 2023 and December 31, 2022 (in thousands):


	September 30, 2023
	Amortized Cost Basis by Origination Year - Term Loans
Risk by Collateral	2023		2022		2021		2020		2019		Prior		Amortized Cost - Revolving Loans		Amortized Cost - Revolving Loans Converted to Term Loans		Total
Equipment/Accounts Receivable/Inventory
Non-watch list – Pass	$	1,218,812	$	1,794,147	$	1,162,035	$	449,097	$	204,893	$	97,679	$	4,110,311	$	3,121	$	9,040,095
Watch – Pass		12,512		75,936		49,138		5,554		11,585		1,618		227,734		—		384,077
Special Mention		3,487		5,543		5,311		249		—		1,252		34,874		—		50,716
Substandard		12,983		6,921		5,930		965		9,132		2,310		84,592		4,890		127,723
Doubtful		2,857		—		—		—		—		—		—		—		2,857
Total Equipment/Accounts Receivable/Inventory	$	1,250,651	$	1,882,547	$	1,222,414	$	455,865	$	225,610	$	102,859	$	4,457,511	$	8,011	$	9,605,468
Agriculture
Non-watch list – Pass	$	11,009	$	5,226	$	4,090	$	1,048	$	1,630	$	280	$	136,879	$	—	$	160,162
Watch – Pass		—		—		—		—		—		—		3,400		—		3,400
Special Mention		—		66		144		—		—		—		795		325		1,330
Substandard		892		691		—		141		—		—		480		—		2,204
Doubtful		—		—		—		—		—		—		—		—		—
Total Agriculture	$	11,901	$	5,983	$	4,234	$	1,189	$	1,630	$	280	$	141,554	$	325	$	167,096


	December 31, 2022
	Amortized Cost Basis by Origination Year - Term Loans
Risk by Collateral	2022		2021		2020		2019		2018		Prior		Amortized Cost - Revolving Loans		Amortized Cost - Revolving Loans Converted to Term Loans		Total
Equipment/Accounts Receivable/Inventory
Non-watch list – Pass	$	2,079,002	$	1,466,120	$	588,562	$	246,387	$	90,656	$	83,054	$	3,879,709	$	3,633	$	8,437,123
Watch – Pass		28,570		78,523		52,696		7,493		3,617		2,275		213,871		—		387,045
Special Mention		4,072		5,637		1,178		—		1,817		899		34,631		—		48,234
Substandard		26,698		12,247		213		13,564		826		559		92,352		293		146,752
Doubtful		2,267		—		—		—		—		—		2,795		—		5,062
Total Equipment/Accounts Receivable/Inventory	$	2,140,609	$	1,562,527	$	642,649	$	267,444	$	96,916	$	86,787	$	4,223,358	$	3,926	$	9,024,216
Agriculture
Non-watch list – Pass	$	12,252	$	5,351	$	1,693	$	1,985	$	396	$	541	$	137,759	$	—	$	159,977
Watch – Pass		550		—		206		—		—		—		8,512		562		9,830
Special Mention		828		64		147		—		—		—		1,539		—		2,578
Substandard		—		—		—		—		—		—		1,456		—		1,456
Doubtful		—		—		—		—		—		—		—		—		—
Total Agriculture	$	13,630	$	5,415	$	2,046	$	1,985	$	396	$	541	$	149,266	$	562	$	173,841

A discussion of the credit quality indicators that impact each type of collateral securing Specialty loans is included below:

Asset-based lending General asset-based loans are secured by accounts receivable, inventory, equipment, and real estate. The purpose of these loans is for financing current operations for commercial customers. The repayment of debt is reliant upon collection of the accounts receivable within 30 to 90 days or converting assets into cash or through goods and services being sold and collected. The Company tracks each individual borrower credit risk based on their loan to collateral position. Any borrower position where the underlying value of collateral is below the fair value of the loan is considered out-of-margin and inherently higher risk.

A discussion of the credit quality indicators that impact each type of collateral securing Commercial real estate loans is included below:

Owner-occupied Owner-occupied loans are secured by commercial real estate. These loans are often longer tenured and susceptible to multiple economic cycles. The loans rely on the owner-occupied operations to service

debt which cover a broad spectrum of industries. Real estate debt can carry a significant amount of leverage for a borrower to maintain.

Non-owner-occupied Non-owner-occupied loans are secured by commercial real estate. These loans are often longer tenured and susceptible to multiple economic cycles. The key element of risk in this type of lending is the cyclical nature of real estate markets. Although national conditions affect the overall real estate industry, the effect of national conditions on local markets is equally important. Factors such as unemployment rates, consumer demand, household formation, and the level of economic activity can vary widely from state to state and among metropolitan areas. In addition to geographic considerations, markets can be defined by property type. While all sectors are influenced by economic conditions, some sectors are more sensitive to certain economic factors than others.

Farmland Farmland loans are secured by real estate used for agricultural purposes such as crop and livestock production. Assets used as collateral are long-term assets that carry the ability to have longer amortizations and maturities. Longer terms carry the risk of added susceptibility to market conditions. The limited purpose of some Agriculture-related collateral affects credit risk because such collateral may have limited or no other uses to support values when loan repayment problems emerge.

5+ Multi-family 5+ multi-family loans are secured by a multi-family residential property. The primary risks associated with this type of collateral are largely driven by economic conditions. The national and local market conditions can change with unemployment rates or competing supply of multi-family housing. Tenants may not be able to afford their housing or have better options and this can result in increased vacancy. Rents may need to be lowered to fill apartment units. Increased vacancy and lower rental rates not only drive the borrower’s ability to repay debt but also contribute to how the collateral is valued.

1-4 Family construction 1-4 family construction loans are secured by 1-4 family residential real estate and are in the process of construction or improvements being made. The predominant risk inherent to this portfolio is the risk associated with a borrower’s ability to successfully complete a project on time and within budget. Market conditions also play an important role in understanding the risk profile. Risk from adverse changes in market conditions from the start of development to completion can result in deflated collateral values.

General construction General construction loans are secured by commercial real estate in process of construction or improvements being made and their repayment is dependent on the collateral’s completion. Construction lending presents unique risks not encountered in term financing of existing real estate. The predominant risk inherent to this portfolio is the risk associated with a borrower’s ability to successfully complete a project on time and within budget. Commercial properties under construction are susceptible to market and economic conditions. Demand from prospective customers may erode after construction begins because of a general economic slowdown or an increase in the supply of competing properties.

Based on the factors noted above for each type of collateral, the Company assigns risk ratings to borrowers based on their most recently assessed financial position.

The following tables provide a summary of the amortized cost balance by collateral type and risk rating as of September 30, 2023 and December 31, 2022 (in thousands):


	September 30, 2023
	Amortized Cost Basis by Origination Year - Term Loans
Risk by Collateral	2023		2022		2021		2020		2019		Prior		Amortized Cost - Revolving Loans		Amortized Cost - Revolving Loans Converted to Term Loans		Total
Owner-occupied
Non-watch list – Pass	$	241,234	$	634,235	$	477,304	$	328,982	$	141,367	$	212,147	$	4,610	$	—	$	2,039,879
Watch – Pass		1,740		7,279		21,942		8,104		10,337		2,411		—		—		51,813
Special Mention		—		14,914		13,025		6,981		4,083		6,731		601		—		46,335
Substandard		241		2,402		773		15		6,310		3,922		—		—		13,663
Doubtful		—		—		—		—		—		—		—		—		—
Total Owner-occupied	$	243,215	$	658,830	$	513,044	$	344,082	$	162,097	$	225,211	$	5,211	$	—	$	2,151,690
Non-owner-occupied
Non-watch list – Pass	$	447,122	$	796,544	$	728,283	$	518,112	$	216,245	$	208,309	$	33,455	$	—	$	2,948,070
Watch – Pass		50,059		167,308		51,971		—		87,668		—		—		—		357,006
Special Mention		—		24,534		24,551		—		—		—		—		—		49,085
Substandard		—		—		—		—		—		9,846		—		—		9,846
Doubtful		—		—		—		—		—		—		—		—		—
Total Non-owner-occupied	$	497,181	$	988,386	$	804,805	$	518,112	$	303,913	$	218,155	$	33,455	$	—	$	3,364,007
Farmland
Non-watch list – Pass	$	43,340	$	62,189	$	35,087	$	198,770	$	16,029	$	19,677	$	86,946	$	—	$	462,038
Watch – Pass		—		1,413		4,089		—		—		436		50		—		5,988
Special Mention		—		432		1,643		—		—		536		—		—		2,611
Substandard		13,447		12,051		3,806		1,057		6,223		—		7,274		—		43,858
Doubtful		—		—		—		—		—		—		—		—		—
Total Farmland	$	56,787	$	76,085	$	44,625	$	199,827	$	22,252	$	20,649	$	94,270	$	—	$	514,495
5+ Multi-family
Non-watch list – Pass	$	831	$	27,690	$	208,264	$	32,209	$	18,363	$	5,697	$	8,214	$	—	$	301,268
Watch – Pass		—		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total 5+ Multi-family	$	831	$	27,690	$	208,264	$	32,209	$	18,363	$	5,697	$	8,214	$	—	$	301,268
1-4 Family construction
Non-watch list – Pass	$	63,788	$	40,097	$	—	$	—	$	—	$	—	$	5,275	$	—	$	109,160
Watch – Pass		—		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total 1-4 Family construction	$	63,788	$	40,097	$	—	$	—	$	—	$	—	$	5,275	$	—	$	109,160
General construction
Non-watch list – Pass	$	344,494	$	1,205,620	$	686,692	$	4,262	$	648	$	121	$	85,458	$	—	$	2,327,295
Watch – Pass		1,148		—		—		—		15		—		—		—		1,163
Special Mention		1,431		—		—		—		—		—		—		—		1,431
Substandard		—		—		8,034		—		—		14		—		—		8,048
Doubtful		81		—		—		—		—		—		—		—		81
Total General construction	$	347,154	$	1,205,620	$	694,726	$	4,262	$	663	$	135	$	85,458	$	—	$	2,338,018


	December 31, 2022
	Amortized Cost Basis by Origination Year - Term Loans
Risk by Collateral	2022		2021		2020		2019		2018		Prior		Amortized Cost - Revolving Loans		Amortized Cost - Revolving Loans Converted to Term Loans		Total
Owner-occupied
Non-watch list – Pass	$	628,858	$	559,067	$	364,760	$	149,183	$	133,339	$	162,412	$	7,850	$	—	$	2,005,469
Watch – Pass		19,405		32,581		17,061		9,785		2,664		2,121		—		—		83,617
Special Mention		5,435		2,213		5,120		18,946		—		—		835		—		32,549
Substandard		3,162		—		1,578		2,872		496		3,095		—		—		11,203
Doubtful		—		—		—		—		—		—		—		—		—
Total Owner-occupied	$	656,860	$	593,861	$	388,519	$	180,786	$	136,499	$	167,628	$	8,685	$	—	$	2,132,838
Non-owner-occupied
Non-watch list – Pass	$	1,075,444	$	810,926	$	568,489	$	356,896	$	64,915	$	214,635	$	28,679	$	—	$	3,119,984
Watch – Pass		53,534		44,582		—		11,307		—		5,071		—		—		114,494
Special Mention		—		—		—		—		—		10,109		—		—		10,109
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		11		—		—		11
Total Non-owner-occupied	$	1,128,978	$	855,508	$	568,489	$	368,203	$	64,915	$	229,826	$	28,679	$	—	$	3,244,598
Farmland
Non-watch list – Pass	$	62,357	$	36,698	$	218,704	$	17,563	$	2,830	$	20,285	$	113,385	$	—	$	471,822
Watch – Pass		20,327		6,454		1,055		101		—		2,559		395		—		30,891
Special Mention		5,505		—		1,001		—		—		—		—		—		6,506
Substandard		6,800		3,940		36		6,393		13,133		1,318		7,274		—		38,894
Doubtful		—		—		—		—		—		—		—		—		—
Total Farmland	$	94,989	$	47,092	$	220,796	$	24,057	$	15,963	$	24,162	$	121,054	$	—	$	548,113
5+ Multi-family
Non-watch list – Pass	$	30,920	$	35,869	$	68,996	$	18,978	$	1,334	$	5,776	$	4,908	$	—	$	166,781
Watch – Pass		—		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total 5+ Multi-family	$	30,920	$	35,869	$	68,996	$	18,978	$	1,334	$	5,776	$	4,908	$	—	$	166,781
1-4 Family construction
Non-watch list – Pass	$	61,943	$	15,217	$	—	$	—	$	—	$	—	$	19	$	—	$	77,179
Watch – Pass		—		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total 1-4 Family construction	$	61,943	$	15,217	$	—	$	—	$	—	$	—	$	19	$	—	$	77,179
General construction
Non-watch list – Pass	$	628,479	$	699,698	$	43,166	$	15,384	$	—	$	380	$	39,267	$	—	$	1,426,374
Watch – Pass		341		—		—		22		—		—		—		—		363
Special Mention		—		8,340		—		—		—		—		—		—		8,340
Substandard		—		11,399		—		—		—		15		—		—		11,414
Doubtful		—		—		—		86		—		—		—		—		86
Total General construction	$	628,820	$	719,437	$	43,166	$	15,492	$	—	$	395	$	39,267	$	—	$	1,446,577

A discussion of the credit quality indicators that impact each type of collateral securing Consumer real estate loans is included below:

HELOC HELOC loans are revolving lines of credit secured by 1-4 family residential property. The primary risk is the borrower’s inability to repay debt. Revolving notes are often associated with HELOCs that can be secured by real estate without a 1st lien priority. Collateral is susceptible to market volatility impacting home values or economic downturns.

First lien: 1-4 family First lien 1-4 family loans are secured by a first lien on 1-4 family residential property. These term loans carry longer maturities and amortizations. The longer tenure exposes the borrower to multiple economic cycles, coupled with longer amortizations that result in smaller principal reduction early in the life of the loan. Collateral is susceptible to market volatility impacting home values.

Junior lien: 1-4 family Junior lien 1-4 family loans are secured by a junior lien on 1-4 family residential property. The Company’s primary risk is the borrower’s inability to repay debt and not being in a first lien position. Collateral is susceptible to market volatility impacting home values or economic downturns.

A borrower is considered non-performing if the Company has ceased the recognition of interest and the loan is placed on non-accrual. Charge-offs and borrower performance are tracked on a loan origination vintage basis. Certain vintages, based on their maturation cycle, could be at higher risk due to collateral-based risk factors.

The following tables provide a summary of the amortized cost balance by collateral type and risk rating as of September 30, 2023 and December 31, 2022 (in thousands):


	September 30, 2023
	Amortized Cost Basis by Origination Year - Term Loans
Risk by Collateral	2023		2022		2021		2020		2019		Prior		Amortized Cost - Revolving Loans		Amortized Cost - Revolving Loans Converted to Term Loans		Total
HELOC
Performing	$	—	$	474	$	—	$	485	$	52	$	3,772	$	342,092	$	407	$	347,282
Non-performing		—		177		—		32		—		1,373		—		714		2,296
Total HELOC	$	—	$	651	$	—	$	517	$	52	$	5,145	$	342,092	$	1,121	$	349,578
First lien: 1-4 family
Performing	$	353,857	$	590,201	$	697,573	$	563,541	$	160,852	$	169,530	$	2	$	—	$	2,535,556
Non-performing		109		1,543		327		127		201		1,007		—		—		3,314
Total First lien: 1-4 family	$	353,966	$	591,744	$	697,900	$	563,668	$	161,053	$	170,537	$	2	$	—	$	2,538,870
Junior lien: 1-4 family
Performing	$	7,419	$	12,470	$	7,569	$	4,318	$	2,225	$	1,808	$	163	$	—	$	35,972
Non-performing		—		46		—		—		—		49		—		—		95
Total Junior lien: 1-4 family	$	7,419	$	12,516	$	7,569	$	4,318	$	2,225	$	1,857	$	163	$	—	$	36,067


	December 31, 2022
	Amortized Cost Basis by Origination Year - Term Loans
Risk by Collateral	2022		2021		2020		2019		2018		Prior		Amortized Cost - Revolving Loans		Amortized Cost - Revolving Loans Converted to Term Loans		Total
HELOC
Performing	$	120	$	—	$	592	$	90	$	148	$	3,919	$	338,979	$	759	$	344,607
Non-performing		117		—		26		134		506		1,470		87		222		2,562
Total HELOC	$	237	$	—	$	618	$	224	$	654	$	5,389	$	339,066	$	981	$	347,169
First lien: 1-4 family
Performing	$	628,678	$	748,269	$	607,055	$	173,061	$	45,907	$	138,764	$	12	$	—	$	2,341,746
Non-performing		25		93		50		405		—		1,679		—		—		2,252
Total First lien: 1-4 family	$	628,703	$	748,362	$	607,105	$	173,466	$	45,907	$	140,443	$	12	$	—	$	2,343,998
Junior lien: 1-4 family
Performing	$	13,490	$	8,445	$	5,107	$	2,529	$	940	$	1,437	$	87	$	—	$	32,035
Non-performing		—		—		—		—		—		67		—		—		67
Total Junior lien: 1-4 family	$	13,490	$	8,445	$	5,107	$	2,529	$	940	$	1,504	$	87	$	—	$	32,102

A discussion of the credit quality indicators that impact each type of collateral securing Consumer loans is included below:

Revolving line Consumer Revolving lines of credit are secured by consumer assets other than real estate. The primary risk associated with this collateral is related to market volatility and the value of the underlying financial assets.

Auto Direct consumer auto loans are secured by new and used consumer vehicles. The primary risk with this collateral class is the rate at which the collateral depreciates.

Other This category includes Other consumer loans made to an individual. The primary risk for this category is for those loans where the loan is unsecured. This collateral type also includes other unsecured lending such as consumer overdrafts.

The following tables provide a summary of the amortized cost balance by collateral type and risk rating as of September 30, 2023 and December 31, 2022 (in thousands):


	September 30, 2023
	Amortized Cost Basis by Origination Year - Term Loans
Risk by Collateral	2023		2022		2021		2020		2019		Prior		Amortized Cost - Revolving Loans		Amortized Cost - Revolving Loans Converted to Term Loans		Total
Revolving line
Performing	$	—	$	—	$	—	$	—	$	—	$	—	$	53,858	$	30	$	53,888
Non-performing		—		—		—		—		—		—		—		—		—
Total Revolving line	$	—	$	—	$	—	$	—	$	—	$	—	$	53,858	$	30	$	53,888
Auto
Performing	$	9,408	$	6,643	$	4,541	$	2,652	$	1,422	$	200	$	—	$	—	$	24,866
Non-performing		—		—		15		5		—		—		—		—		20
Total Auto	$	9,408	$	6,643	$	4,556	$	2,657	$	1,422	$	200	$	—	$	—	$	24,886
Other
Performing	$	4,881	$	23,073	$	26,433	$	622	$	451	$	1,256	$	8,213	$	—	$	64,929
Non-performing		—		15		—		—		3		—		—		—		18
Total Other	$	4,881	$	23,088	$	26,433	$	622	$	454	$	1,256	$	8,213	$	—	$	64,947


	December 31, 2022
	Amortized Cost Basis by Origination Year - Term Loans
Risk by Collateral	2022		2021		2020		2019		2018		Prior		Amortized Cost - Revolving Loans		Amortized Cost - Revolving Loans Converted to Term Loans		Total
Revolving line
Performing	$	467	$	584	$	—	$	—	$	—	$	—	$	58,133	$	1,403	$	60,587
Non-performing		—		—		—		—		—		—		—		—		—
Total Revolving line	$	467	$	584	$	—	$	—	$	—	$	—	$	58,133	$	1,403	$	60,587
Auto
Performing	$	9,124	$	6,498	$	4,454	$	2,743	$	335	$	159	$	—	$	—	$	23,313
Non-performing		—		45		1		—		—		—		—		—		46
Total Auto	$	9,124	$	6,543	$	4,455	$	2,743	$	335	$	159	$	—	$	—	$	23,359
Other
Performing	$	26,291	$	27,751	$	1,096	$	876	$	1,133	$	591	$	3,967	$	—	$	61,705
Non-performing		15		—		—		—		—		—		—		—		15
Total Other	$	26,306	$	27,751	$	1,096	$	876	$	1,133	$	591	$	3,967	$	—	$	61,720

A discussion of the credit quality indicators that impact Credit card loans is included below:

Consumer Consumer credit card loans are revolving loans made to individuals. The primary risk associated with this collateral class is credit card debt is generally unsecured; therefore, repayment depends primarily on a borrower’s willingness and capacity to repay. The highly competitive environment for credit card lending provides consumers with ample opportunity to hold several credit cards from different issuers and to pay only minimum monthly payments on outstanding balances. In such an environment, borrowers may become over-extended and unable to repay, particularly in times of an economic downturn or a personal catastrophic event.

The consumer credit card portfolio is segmented by borrower payment activity. Transactors are defined as accounts that pay off their balance by the end of each statement cycle. Revolvers are defined as an account that carries a balance from statement cycle to the next. These accounts incur monthly finance charges, and, sometimes, late fees. Revolvers are inherently higher risk and are tracked by credit score.

Commercial Commercial credit card loans are revolving loans made to small and commercial businesses. The primary risk associated with this collateral class is credit card debt is generally unsecured; therefore, repayment depends primarily on a borrower’s willingness and capacity to repay. Borrowers may become over-extended and unable to repay, particularly in times of an economic downturn or a catastrophic event.

The commercial credit card portfolio is segmented by current and past due payment status. A borrower is past due after 30 days. In general, commercial credit card customers do not have incentive to hold a balance resulting in paying interest on credit card debt as commercial customers will typically have other debt obligations with lower interest rates in which they can utilize for capital.

A discussion of the credit quality indicators that impact each type of collateral securing Leases and other loans is included below:

Leases Leases are either loans to individuals for household, family and other personal expenditures or are loans related to all other direct financing and leveraged leases on property for leasing to lessees other than for household, family and other personal expenditure purposes. All leases are secured by the lease between the lessor and the lessee. These assignments grant the creditor a security interest in the rent stream from any lease, an important source of cash to pay the note in case of the borrower’s default.

Other Other loans are loans that are obligations of states and political subdivisions in the U.S., loans to non-depository financial institutions, loans for purchasing or carrying securities, or all other non-consumer loans. Risk associated with other loans is tied to the underlying collateral by each type of loan. Collateral is generally equipment, accounts receivable, inventory, 1-4 family residential construction and susceptible to the same risks mentioned with those collateral types previously. Other risks consist of collateral that is secured by the stock of a non-depository financial institution, which can be unlisted stock with a limited market for the stock, or volatility of asset values driven by market performance.

Based on the factors noted above for each type of collateral, the Company assigns risk ratings to borrowers based on their most recently assessed financial position.

The allowance for credit losses (ACL) is a valuation account that is deducted from loans’ and held-to-maturity (HTM) securities’ amortized cost bases to present the net amount expected to be collected on the instrument. Loans and HTM securities are charged off against the ACL when management believes the balance has become uncollectible. Expected recoveries are included in the allowance and do not exceed the aggregate of amounts previously charged-off and expected to be charged-off.

Management estimates the allowance balance using relevant available information, from internal and external sources, related to past events, current conditions, and reasonable and supportable economic forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses and is tracked over an economic cycle to capture a ‘through the cycle’ loss history. Adjustments to historical loss information are made for

differences in current loan-specific risk characteristics such as differences in portfolio industry-based segmentation, risk rating and credit score changes, average prepayment rates, changes in environmental conditions, or other relevant factors. For economic forecasts, the Company uses the Moody’s baseline scenario. The Company has developed a dynamic reasonable and supportable forecast period that ranges from one to three years and changes based on economic conditions. Due to current economic conditions, the Company’s reasonable and supportable forecast period is one year. After the reasonable and supportable forecast period, the Company reverts to historical losses. The reversion method applied to each portfolio can either be cliff or straight-line over four quarters.

The ACL is measured on a collective (pool) basis when similar risk characteristics exists. The ACL also incorporates qualitative factors which represent adjustments to historical credit loss experience for items such as concentrations of credit and results of internal loan review. The Company has identified the following portfolio segments and measures the allowance for credit losses using the following methods. The Company’s portfolio segmentation consists of Commercial and industrial, Specialty lending, Commercial real estate, Consumer real estate, Consumer, Credit cards, Leases and other, and Held-to-maturity securities. Multiple modeling techniques are used to measure credit losses based on the portfolio.

The ACL for Commercial and industrial and Leases and other segments are measured using a probability of default and loss given default method. Primary risk drivers within the segment are risk ratings of the individual loans along with changes of macro-economic variables. The economic variables utilized are typically comprised of leading and lagging indicators. The ACL for Commercial and industrial loans is calculated by modeling probability of default (PD) over future periods multiplied by historical loss given default rates (LGD) multiplied by contractual exposure at default minus any estimated prepayments and charge offs.

Collateral positions for Specialty lending loans are continuously monitored by the Company and the borrower is required to continually adjust the amount of collateral securing the loan. Credit losses are measured for any position where the amortized cost basis is greater than the fair value of the collateral. The ACL for specialty lending loans is calculated by using a bottom-up approach comparing collateral values to outstanding balances.

The ACL for the Commercial real estate segment is measured using a PD and LGD method. Primary risk characteristics within the segment are risk ratings of the individual loans, along with changes of macro-economic variables, such as interest rates, CRE price index, median household income, construction activity, farm income, and vacancy rates. The ACL for Commercial real estate loans is calculated by modeling PD over future periods based on peer bank data. The PD loss rate is then multiplied by historical LGD multiplied by contractual exposure at default minus any estimated prepayments and charge offs.

The ACL for the Consumer real estate and Consumer segments are measured using an origination vintage loss rate method applied to the loans’ amortized cost balance. The primary risk driver within the segments is year of origination along with changes of macro-economic variables such as unemployment and the home price index.

The Credit card segment contains both consumer and commercial credit cards. The ACL for Consumer credit cards is measured using a PD and LGD method for Revolvers and average historical loss rates across a defined lookback period for Transactors. The PD and LGD method used for Revolvers is similar in nature to the method used in the Commercial and industrial and Commercial real estate segments. Primary risk drivers within the segment are credit ratings of the individual card holders along with changes of macro-economic variables such as unemployment and retail sales. The ACL for Commercial credit cards is measured using roll-rate loss rate method based on days past due.

The ACL for the State and political HTM securities segment is measured using a loss rate method based on historical bond rating transitions. Primary risk drivers within the segment are bond ratings in the portfolio along with changes of macro-economic conditions. There is no ACL for the U.S. Agency and GSE mortgage-backed HTM securities portfolios as they are considered to be agency-backed securities with no risk of loss as they are either explicitly or implicitly guaranteed by the U.S. government. For further discussion on these securities, including the aging and amortized cost balance of HTM securities, see Note 5, “Securities.”

See the credit quality indicators presented previously for a summary of current risk in the Company’s portfolio. Changes in economic forecasts will affect all portfolio segments, updated financial records from

borrowers will affect portfolio segments by risk rating, updated credit scores will affect consumer credit cards, payment performance will affect consumer and commercial credit card portfolio segments, and updated bond credit ratings will affect held-to-maturity securities. The Company actively monitors all credit quality indicators for risk changes that will influence the current estimate.

Expected credit losses are estimated over the contractual term of the loans, adjusted for prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a concessionary loan term has been granted to a borrower experiencing financial difficulty or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancelable by the Company.

Credit card receivables do not have stated maturities. In determining the estimated life of a credit card receivable, management first estimates the future cash flows expected to be received and then applies those expected future cash flows to the credit card balance. Expected credit losses for credit cards are determined by estimating the amount and timing of principal payments expected to be received as payment for the balance outstanding as of the reporting period until the expected payments have been fully allocated. The ACL is recorded for the excess of the balance outstanding as of the reporting period over the expected principal payments.

Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually include loans on nonaccrual, loans that include modifications deemed concessionary and not temporary made to borrowers experiencing financial difficulty, or any loans specifically identified, and are excluded from the collective evaluation. When it is determined that payment of interest or recovery of all principal is questionable, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for undiscounted selling costs as appropriate. All loans are classified as collateral dependent if placed on non-accrual or include modifications made to borrowers experiencing financial difficulty.

This table provides a rollforward of the allowance for credit losses by portfolio segment for the three and nine months ended September 30, 2023 and September 30, 2022 (in thousands):


	Three Months Ended September 30, 2023
	Commercial and industrial			Specialty lending			Commercial real estate		Consumer real estate			Consumer			Credit cards			Leases and other			Total - Loans			HTM			Total
Allowance for credit losses:
Beginning balance	$	163,810		$	—		$	42,192	$	6,527		$	417		$	7,231		$	1,984		$	222,161		$	2,828		$	224,989
Charge-offs		(1,908	)		(762	)		—		(11	)		(254	)		(2,511	)		—			(5,446	)		—			(5,446	)
Recoveries		445			—			—		6			32			345			—			828			—			828
Provision		(4,129	)		762			3,524		304			303			2,651			504			3,919			58			3,977
Ending balance - ACL	$	158,218		$	—		$	45,716	$	6,826		$	498		$	7,716		$	2,488		$	221,462		$	2,886		$	224,348
Allowance for credit losses on off-balance sheet credit exposures:
Beginning balance	$	3,079		$	186		$	430	$	119		$	12		$	—		$	177		$	4,003		$	85		$	4,088
Provision		1,013			—			30		(2	)		(3	)		—			(17	)		1,021			(21	)		1,000
Ending balance - ACL on off-balance sheet	$	4,092		$	186		$	460	$	117		$	9		$	—		$	160		$	5,024		$	64		$	5,088


	Three Months Ended September 30, 2022
	Commercial and industrial		Specialty lending			Commercial real estate		Consumer real estate		Consumer			Credit cards			Leases and other			Total - Loans			HTM		Total
Allowance for credit losses:
Beginning balance	$	112,942	$	1,133		$	37,240	$	4,565	$	863		$	5,579		$	2,024		$	164,346		$	2,259	$	166,605
Charge-offs		—		—			—		—		(241	)		(1,852	)		—			(2,093	)		—		(2,093	)
Recoveries		29		429			—		11		29			422			—			920			—		920
Provision		20,134		(1,562	)		909		422		(223	)		2,426			(366	)		21,740			260		22,000
Ending balance - ACL	$	133,105	$	—		$	38,149	$	4,998	$	428		$	6,575		$	1,658		$	184,913		$	2,519	$	187,432
Allowance for credit losses on off-balance sheet credit exposures:
Beginning balance	$	2,178	$	186		$	418	$	124	$	13		$	—		$	62		$	2,981		$	107	$	3,088
Provision		—		—			—		—		—			—			—			—			—		—
Ending balance - ACL on off-balance sheet	$	2,178	$	186		$	418	$	124	$	13		$	—		$	62		$	2,981		$	107	$	3,088


	Nine Months Ended September 30, 2023
	Commercial and industrial			Specialty lending			Commercial real estate			Consumer real estate			Consumer			Credit cards			Leases and other		Total - Loans			HTM			Total
Allowance for credit losses:
Beginning balance	$	136,737		$	—		$	39,370		$	6,148		$	494		$	6,866		$	2,221	$	191,836		$	2,407		$	194,243
Charge-offs		(4,727	)		(762	)		(21	)		(1,153	)		(934	)		(6,181	)		—		(13,778	)		—			(13,778	)
Recoveries		3,331			1			21			24			154			1,125			—		4,656			—			4,656
Provision		22,877			761			6,346			1,807			784			5,906			267		38,748			479			39,227
Ending balance - ACL	$	158,218		$	—		$	45,716		$	6,826		$	498		$	7,716		$	2,488	$	221,462		$	2,886		$	224,348
Allowance for credit losses on off-balance sheet credit exposures:
Beginning balance	$	2,178		$	186		$	418		$	124		$	13		$	—		$	62	$	2,981		$	107		$	3,088
Provision		1,914			—			42			(7	)		(4	)		—			98		2,043			(43	)		2,000
Ending balance - ACL on off-balance sheet	$	4,092		$	186		$	460		$	117		$	9		$	—		$	160	$	5,024		$	64		$	5,088


	Nine Months Ended September 30, 2022
	Commercial and industrial			Specialty lending			Commercial real estate			Consumer real estate			Consumer			Credit cards			Leases and other			Total - Loans			HTM		Total
Allowance for credit losses:
Beginning balance	$	123,732		$	1,738		$	56,265		$	3,921		$	845		$	6,075		$	2,195		$	194,771		$	1,940	$	196,711
Charge-offs		(36,217	)		—			—			(57	)		(560	)		(4,785	)		—			(41,619	)		—		(41,619	)
Recoveries		1,419			430			385			121			89			1,496			—			3,940			—		3,940
Provision		44,171			(2,168	)		(18,501	)		1,013			54			3,789			(537	)		27,821			579		28,400
Ending balance - ACL	$	133,105		$	—		$	38,149		$	4,998		$	428		$	6,575		$	1,658		$	184,913		$	2,519	$	187,432
Allowance for credit losses on off-balance sheet credit exposures:
Beginning balance	$	1,739		$	160		$	480		$	106		$	—		$	—		$	15		$	2,500		$	88	$	2,588
Provision		439			26			(62	)		18			13			—			47			481			19		500
Ending balance - ACL on off-balance sheet	$	2,178		$	186		$	418		$	124		$	13		$	—		$	62		$	2,981		$	107	$	3,088

The allowance for credit losses on off-balance sheet credit exposures is recorded in the Accrued expenses and taxes line of the Company’s Consolidated Balance Sheets. See Note 10 “Commitments, Contingencies and Guarantees.”

The following tables provide the amortized cost balance of financial assets considered collateral dependent as of September 30, 2023 and December 31, 2022 (in thousands):


	September 30, 2023
Loan Segment and Type	Amortized Cost of Collateral Dependent Assets		Related Allowance for Credit Losses		Amortized Cost of Collateral Dependent Assets with no related Allowance
Commercial and industrial:
Equipment/Accounts Receivable/Inventory	$	9,282	$	610	$	8,673
Agriculture		—		—		—
Total Commercial and industrial		9,282		610		8,673
Specialty lending:
Asset-based lending		15,230		—		15,230
Total Specialty lending		15,230		—		15,230
Commercial real estate:
Owner-occupied		2,201		1,857		344
Non-owner-occupied		—		—		—
Farmland		195		—		195
5+ Multi-family		—		—		—
1-4 Family construction		—		—		—
General construction		95		—		95
Total Commercial real estate		2,491		1,857		634
Consumer real estate:
HELOC		2,296		—		2,296
First lien: 1-4 family		3,315		—		3,315
Junior lien: 1-4 family		95		—		95
Total Consumer real estate		5,706		—		5,706
Consumer:
Revolving line		—		—		—
Auto		20		—		20
Other		17		—		17
Total Consumer		37		—		37
Leases and other:
Leases		—		—		—
Other		—		—		—
Total Leases and other		—		—		—
Total loans	$	32,746	$	2,467	$	30,280


	December 31, 2022
Loan Segment and Type	Amortized Cost of Collateral Dependent Assets		Related Allowance for Credit Losses		Amortized Cost of Collateral Dependent Assets with no related Allowance
Commercial and industrial:
Equipment/Accounts Receivable/Inventory	$	13,972	$	713	$	11,534
Agriculture		—		—		—
Total Commercial and industrial		13,972		713		11,534
Specialty lending:
Asset-based lending		—		—		—
Total Specialty lending		—		—		—
Commercial real estate:
Owner-occupied		2,204		—		2,204
Non-owner-occupied		—		—		—
Farmland		374		—		374
5+ Multi-family		—		—		—
1-4 Family construction		—		—		—
General construction		101		—		101
Total Commercial real estate		2,679		—		2,679
Consumer real estate:
HELOC		2,562		—		2,562
First lien: 1-4 family		2,253		6		1,597
Junior lien: 1-4 family		67		—		67
Total Consumer real estate		4,882		6		4,226
Consumer:
Revolving line		—		—		—
Auto		46		—		46
Other		15		—		15
Total Consumer		61		—		61
Leases and other:
Leases		—		—		—
Other		24		—		24
Total Leases and other		24		—		24
Total loans	$	21,618	$	719	$	18,524

In the normal course of business, the Company may execute loan modifications with borrowers. These modifications are analyzed to determine whether the modification is considered concessionary, long term and made to a borrower experiencing financial difficulty. The Company’s modifications generally include interest rate adjustments, principal reductions, and amortization and maturity date extensions. These modifications allow the borrower short-term cash relief to allow them to improve their financial condition. If a loan modification is determined to be made to a borrower experiencing financial difficulty, the loan is considered collateral dependent and evaluated as part of the ACL as described above in the Allowance for Credit Losses section of this note.

For the three and nine months ended September 30, 2023, the Company did not modify any loans made to borrowers experiencing financial difficulty.

The Company had no commitments to lend to borrowers experiencing financial difficulty for which the Company has modified an existing loan as of September 30, 2023. The Company monitors loan payments on an on-going basis to determine if a loan is considered to have a payment default. Determination of payment default involves analyzing the economic conditions that exist for each customer and their ability to generate positive cash flows during the loan term. For the three and nine months ended September 30, 2023, the Company had no loan modifications made to borrowers experiencing financial difficulty for which there was a payment default within the 12 months following the modification date.

The prior period disclosures below are presented in accordance with previously applicable GAAP. A loan modification is considered a TDR when a concession has been granted to a debtor experiencing financial difficulties. The Company’s modifications generally include interest rate adjustments, principal reductions, and amortization and maturity date extensions. These modifications allow the debtor short-term cash relief to allow them to improve their financial condition. The Company’s restructured loans are considered collateral dependent and evaluated as part of the allowance for credit loss as described above in the Allowance for Credit Losses section of this note.

The Company had no commitments to lend to borrowers with loan modifications classified as TDRs as of September 30, 2022. The Company monitors loan payments on an on-going basis to determine if a loan is considered to have a payment default. Determination of payment default involves analyzing the economic conditions that exist for each customer and their ability to generate positive cash flows during the loan term.

For the three months ended September 30, 2022, the Company had no new TDRs. For the nine months ended September 30, 2022, the Company had two commercial TDRs with a pre-modification loan balance of $5.1 million and a post-modification loan balance of $4.3 million. For the three and nine months ended September 30, 2022, the Company had no TDRs for which there was a payment default within the 12 months following the restructure date.