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LOANS AND THE ALLOWANCE FOR CREDIT LOSSES (Tables)
 3 Months Ended
Mar. 31, 2024
Receivables [Abstract]  
Summary of the Company's loans
The following presents a summary of the Company’s loans at amortized cost as of the dates noted:
(dollars in thousands)
March 31,
2024		December 31,
2023
Cash, Securities, and Other$150,969 $139,947 
Consumer and Other18,450 27,028 
Construction and Development331,437 345,516 
1-4 Family Residential912,106 927,965 
Non-Owner Occupied CRE559,763 543,692 
Owner Occupied CRE193,035 195,861 
Commercial and Industrial297,842 337,180 
Total2,463,602 2,517,189 
Allowance for credit losses(24,630)(23,931)
Total, net$2,438,972 $2,493,258 
Loans accounted for under the fair value option(1)
11,922 13,726 
Loans, net$2,450,894 $2,506,984 
______________________________________
(1)Includes $12.3 million and $14.1 million of unpaid principal balance of loans held for investment measured at fair value as of March 31, 2024 and December 31, 2023, respectively. Includes fair value adjustments on loans held for investment accounted for under the fair value option. See Note 12 – Fair Value.
Summary of aging analysis of the recorded investments in loans past due
The following presents, by class, an aging analysis of the amortized cost basis in loans past due as of the date noted (dollars in thousands):
March 31, 202430-59
Days
Past Due		60-89
Days
Past Due		90 or
More Days
Past Due		Total
Loans
Past Due		CurrentTotal
Amortized
Cost
Loans Accounted for Under the Fair Value Option(1)
Total Loans
Cash, Securities, and Other$195 $70 $1,719 $1,984 $148,985 $150,969 $— $150,969 
Consumer and Other4 6 3,807 3,817 14,633 18,450 11,922 30,372 
Construction and Development— — — — 331,437 331,437 — 331,437 
1-4 Family Residential1,613 303 2,438 4,354 907,752 912,106 — 912,106 
Non-Owner Occupied CRE— — — — 559,763 559,763 — 559,763 
Owner Occupied CRE— — 3,980 3,980 189,055 193,035 — 193,035 
Commercial and Industrial10,596 — 30,786 41,382 256,460 297,842 — 297,842 
Total$12,408 $379 $42,730 $55,517 $2,408,085 $2,463,602 $11,922 $2,475,524 

December 31, 202330-59
Days
Past Due		60-89
Days
Past Due		90 or
More Days
Past Due		Total
Loans
Past Due		CurrentTotal Amortized Cost
Loans Accounted for Under the Fair Value Option(1)
Total Loans
Cash, Securities, and Other$— $76 $1,704 $1,780 $138,167 $139,947 $— $139,947 
Consumer and Other676 11 7,504 8,191 18,837 27,028 13,726 40,754 
Construction and Development— 1,500 — 1,500 344,016 345,516 — 345,516 
1-4 Family Residential1,093 — 2,722 3,815 924,150 927,965 — 927,965 
Non-Owner Occupied CRE— — — — 543,692 543,692 — 543,692 
Owner Occupied CRE— — 3,980 3,980 191,881 195,861 — 195,861 
Commercial and Industrial19,305 1,085 29,180 49,570 287,610 337,180 — 337,180 
Total$21,074 $2,672 $45,090 $68,836 $2,448,353 $2,517,189 $13,726 $2,530,915 
(1)Refer to Note 12 – Fair Value for additional information on the measurement of loans accounted for under the fair value option.
Summary modified loans
The following table presents the amortized cost basis as of March 31, 2024 of the loans modified to borrowers experiencing financial difficulty disaggregated by class of financing receivable and type of concession granted during the three months ended March 31, 2024. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below.
(dollars in thousands)Principal forgivenessInterest rate reductionTerm extensionCombination: term extension and principal forgivenessCombination: term extension and interest rate reductionTotal class of financing receivable
Commercial and Industrial$— $— $73 $— $— — %
Total$— $— $73 $— $— 
The following table presents the financial effect by type of modification made to borrowers experiencing financial difficulty for the three months ended March 31, 2024:
(dollars in thousands)Principal forgivenessWeighted average interest rate reductionWeighted average term extension
Commercial and Industrial—
—
$73
Schedule of recorded investment in non accrual loans by class The following presents the amortized cost basis of loans on non-accrual status and loans past due over 89 days still accruing by class as of the dates noted:
As of March 31, 2024
(dollars in thousands)Non-accrual loans with
no ACL
Total non-accrual loans(1)
Loans past due over 89 days still accruing
Cash, Securities, and Other$1,704 $1,704 $16 
Consumer and Other9 3,807 — 
Construction and Development— — — 
1-4 Family Residential569 3,007 — 
Non-Owner Occupied CRE— — — 
Owner Occupied CRE— 3,980 — 
Commercial and Industrial3,736 33,225 — 
Total$6,018 $45,723 $16 
(1)As of March 31, 2024, the Company had an allowance of $6.1 million on non-performing loans.
As of December 31, 2023
(dollars in thousands)Non-accrual loans with
no ACL
Total non-accrual loans(1)
Loans past due over 89 days still accruing
Cash, Securities, and Other$1,704 $1,704 $— 
Consumer and Other4 7,504 — 
Construction and Development2,719 2,719 — 
1-4 Family Residential578 3,016 285 
Owner Occupied CRE— 3,980 — 
Commercial and Industrial2,355 31,893 — 
Total$7,360 $50,816 $285 
(1)As of December 31, 2023, the Company had an allowance of $3.8 million on non-performing loans.
The following presents the amortized cost basis of collateral-dependent loans, which are individually evaluated to determine expected credit losses, by class of loans as of the date noted:
As of March 31, 2024
Collateral Dependent Loans
(dollars in thousands)Secured by Real EstateSecured by Cash and
Securities		Secured by OtherTotal
Cash, Securities, and Other$— $1,704 $— $1,704 
Consumer and Other3,798 — — 3,798 
Construction and Development— — — — 
1-4 Family Residential3,007 — — 3,007 
Non-Owner Occupied CRE— — — — 
Owner Occupied CRE3,980 — — 3,980 
Commercial and Industrial— — 33,225 33,225 
Total$10,785 $1,704 $33,225 $45,714 
As of December 31, 2023
Collateral Dependent Loans
(dollars in thousands)Secured by Real EstateSecured by Cash and
Securities		Secured by OtherTotal
Cash, Securities, and Other$— $1,704 $— $1,704 
Consumer and Other— — 7,500 7,500 
Construction and Development2,719 — — 2,719 
1-4 Family Residential3,016 — — 3,016 
Owner Occupied CRE3,980 — — 3,980 
Commercial and Industrial— — 31,893 31,893 
Total$9,715 $1,704 $39,393 $50,812 
Schedule of activity in the Company's allowance for loan losses by portfolio class The following table presents the activity in the allowance for credit losses by portfolio segment during the periods presented:
(dollars in thousands)Cash,
Securities
and Other		Consumer
and
Other		Construction
and
Development		1-4
Family
Residential		Non-Owner
Occupied
CRE		Owner
Occupied
CRE		Commercial
and
Industrial		Total
Changes in allowance for credit losses for the three months ended March 31, 2024:
Beginning balance$961 $124 $7,945 $4,370 $2,325 $1,034 $7,172 $23,931 
(Release) provision for credit losses(184)(31)(557)(87)(129)(59)1,746 699 
Charge-offs— (11)— — — — — (11)
Recoveries— 5 — 5 — — 1 11 
Ending balance$777 $87 $7,388 $4,288 $2,196 $975 $8,919 $24,630 
(dollars in thousands)Cash,
Securities
and Other		Consumer
and
Other		Construction
and
Development		1-4
Family
Residential		Non-Owner
Occupied
CRE		Owner
Occupied
CRE		Commercial
and
Industrial		Total
Changes in allowance for credit losses for the three months ended March 31, 2023:
Beginning balance, prior to the adoption of ASU 2016-13$1,198 $191 $2,025 $6,309 $3,490 $1,510 $2,460 $17,183 
Impact of adopting ASU 2016-13193 106 4,681 (2,808)(689)(104)2,091 3,470 
Provision (release) for credit losses60 (95)(477)320 (92)(134)(387)(805)
Charge-offs— (17)— — — — — (17)
Recoveries— 11 — — — — 1 12 
Ending balance$1,451 $196 $6,229 $3,821 $2,709 $1,272 $4,165 $19,843 
Summary of recorded investment in the Company's loans by class and by credit quality indicator
The following tables presents the amortized cost basis of loans by credit quality indicator, by class of financing receivable, and year of origination for term loans as of March 31, 2024 and December 31, 2023. For revolving lines of credit that converted to term loans, if the conversion involved a credit decision, such loans are included in the origination year in which the credit decision was made. If revolving lines of credit converted to term loans without a credit decision, such lines of credit are included in the “Revolving lines of credit converted to term” column in the following table (dollars in thousands):
Term Loans Amortized Cost by Origination Year
March 31, 202420242023202220212020PriorRevolving Loans Amortized Cost BasisTotal
Cash, Securities, and Other
Pass$12,982 $8,325 $18,118 $15,166 $5,812 $19,043 $69,819 $149,265 
Special mention— — — — — — — — 
Substandard— — — — — — 1,704 1,704 
Doubtful— — — — — — — — 
Not rated— — — — — — — — 
Total Cash, Securities, and Other$12,982 $8,325 $18,118 $15,166 $5,812 $19,043 $71,523 $150,969 
Current year-to-date gross write-offs$— $— $— $— $— $— $— $— 
Consumer and Other
Pass— 595 1,898 631 556 705 10,267 14,652 
Special mention— — — — — — — — 
Substandard— — — — — — 3,798 3,798 
Doubtful— — — — — — — — 
Not rated(1)
— — 10,086 1,667 104 65 — 11,922 
Total Consumer and Other$— $595 $11,984 $2,298 $660 $770 $14,065 $30,372 
Current year-to-date gross write-offs$— $— $— $— $4 $7 $— $11 
Construction and Development
Pass$5,760 $40,304 $237,183 $22,113 $9,269 $— $903 $315,532 
Special mention— — 15,905 — — — — $15,905 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Not rated— — — — — — — — 
Total Construction and Development$5,760 $40,304 $253,088 $22,113 $9,269 $— $903 $331,437 
Current year-to-date gross write-offs$— $— $— $— $— $— $— $— 
1-4 Family Residential
Pass$12,239 $94,888 $365,495 $137,733 $107,509 $67,145 $124,090 $909,099 
Special mention— — — — — — — — 
Substandard— 569 2,438 — — — — 3,007 
Term Loans Amortized Cost by Origination Year
March 31, 202420242023202220212020PriorRevolving Loans Amortized Cost BasisTotal
Doubtful— — — — — — — — 
Not rated— — — — — — — — 
Total 1-4 Family Residential$12,239 $95,457 $367,933 $137,733 $107,509 $— $67,145 $— $124,090 $— $912,106 
Current year-to-date gross write-offs$— $— $— $— $— $— $— $— 
Non-Owner Occupied CRE
Pass$— $42,767 $198,683 $125,452 $86,840 $76,797 $24,259 $554,798 
Special mention— — — — 4,965 — — 4,965 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Not rated— — — — — — — — 
Total Non-Owner Occupied CRE$— $42,767 $198,683 $125,452 $91,805 $76,797 $24,259 $559,763 
Current year-to-date gross write-offs$— $— $— $— $— $— $— $— 
Owner Occupied CRE
Pass$368 $3,209 $46,029 $43,648 $34,154 $56,155 $5,492 $189,055 
Special mention— — — — — — — — 
Substandard— — — 3,980 — — — 3,980 
Doubtful— — — — — — — — 
Not rated— — — — — — — — 
Total Owner Occupied CRE$368 $3,209 $46,029 $47,628 $34,154 $56,155 $5,492 $193,035 
Current year-to-date gross write-offs$— $— $— $— $— $— $— $— 
Commercial and Industrial
Pass$1,985 $18,856 $54,199 $15,249 $12,589 $25,422 $123,016 $251,316 
Special mention— — — — — — 11,190 11,190 
Substandard1,037 — 182 28,270 2,906 830 2,111 35,336 
Doubtful— — — — — — — — 
Not rated— — — — — — — — 
Total Commercial and Industrial$3,022 $18,856 $54,381 $43,519 $15,495 $26,252 $136,317 $297,842 
Current year-to-date gross write-offs$— $— $— $— $— $— $— $— 
Total pass$33,334 $208,944 $921,605 $359,992 $256,729 $245,267 $357,846 $2,383,717 
Total special mention— — 15,905 — 4,965 — 11,190 32,060 
Total substandard1,037 569 2,620 32,250 2,906 830 7,613 47,825 
Total doubtful— — — — — — — — 
Total not rated— — 10,086 1,667 104 65 — 11,922 
Total$34,371 $209,513 $950,216 $393,909 $264,704 $246,162 $376,649 $2,475,524 
(1)Includes loans held for investment measured at fair value as of March 31, 2024. Includes fair value adjustments on loans held for investment accounted for under the fair value option.
Term Loans Amortized Cost by Origination Year
December 31, 202320232022202120202019PriorRevolving Loans Amortized Cost BasisTotal
Cash, Securities, and Other
Pass$8,091 $17,878 $17,181 $5,966 $6,337 $13,188 $69,602 $138,243 
Special mention— — — — — — — — 
Substandard— — — — — — 1,704 1,704 
Doubtful— — — — — — — — 
Not rated— — — — — — — — 
Total Cash, Securities, and Other$8,091 $17,878 $17,181 $5,966 $6,337 $13,188 $71,306 $139,947 
Current year-to-date gross write-offs$— $— $— $— $— $— $— $— 
Consumer and Other
Pass$614 $2,013 $647 $633 $797 $24 $14,800 $19,528 
Special mention— — — — — — — — 
Substandard— — — — — — 7,500 7,500 
Doubtful— — — — — — — — 
Not rated(1)
— 10,469 2,544 614 99 — — 13,726 
Total Consumer and Other$614 $12,482 $3,191 $1,247 $896 $24 $22,300 $40,754 
Current year-to-date gross write-offs$— $— $— $8 $91 $2 $— $101 
Construction and Development
Pass$32,509 $231,103 $42,796 $21,615 $— $— $431 $328,454 
Special mention— 14,343 — — — — — 14,343 
Substandard2,719 — — — — — — 2,719 
Doubtful— — — — — — — — 
Not rated— — — — — — — — 
Total Construction and Development$35,228 $245,446 $42,796 $21,615 $— $— $431 $345,516 
Current year-to-date gross write-offs$— $— $— $— $— $— $— $— 
1-4 Family Residential
Pass$97,901 $373,525 $143,694 $108,815 $37,756 $31,452 $131,806 $924,949 
Special mention— — — — — — — — 
Substandard578 2,438 — — — — — 3,016 
Doubtful— — — — — — — — 
Not rated— — — — — — — — 
Total 1-4 Family Residential$98,479 $375,963 $143,694 $108,815 $37,756 $31,452 $131,806 $927,965 
Current year-to-date gross write-offs$— $— $— $— $— $— $— $— 
Non-Owner Occupied CRE
Pass$42,799 $197,122 $125,726 $75,026 $24,411 $53,056 $20,553 $538,693 
Special mention— — — 4,999 — — — 4,999 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Not rated— — — — — — — — 
Total Non-Owner Occupied CRE$42,799 $197,122 $125,726 $80,025 $24,411 $53,056 $20,553 $543,692 
Current year-to-date gross write-offs$— $— $— $— $— $— $— $— 
Owner Occupied CRE
Pass$3,229 $46,751 $44,805 $37,957 $5,555 $51,259 $2,325 $191,881 
Special mention— — — — — — — — 
Substandard— — 3,980 — — — — 3,980 
Doubtful— — — — — — — — 
Not rated— — — — — — — — 
Total Owner Occupied CRE$3,229 $46,751 $48,785 $37,957 $5,555 $51,259 $2,325 $195,861 
Current year-to-date gross write-offs$— $— $— $— $— $— $— $— 
Commercial and Industrial
Pass$38,497 $59,612 $15,430 $13,457 $6,430 $16,068 $152,782 $302,276 
Special mention— — — — — — 649 649 
Term Loans Amortized Cost by Origination Year
December 31, 202320232022202120202019PriorRevolving Loans Amortized Cost BasisTotal
Substandard1,618 — 29,355 1,674 — 920 688 34,255 
Doubtful— — — — — — — — 
Not rated— — — — — — — — 
Total Commercial and Industrial$40,115 $59,612 $44,785 $15,131 $6,430 $16,988 $154,119 $337,180 
Current year-to-date gross write-offs$— $8,737 $— $— $— $— $— $8,737 
Total pass223,640 928,004 390,279 263,469 81,286 165,047 392,299 2,444,024 
Total special mention— 14,343 — 4,999 — — 649 19,991 
Total substandard4,915 2,438 33,335 1,674 — 920 9,892 53,174 
Total doubtful— — — — — — — — 
Total not rated— 10,469 2,544 614 99 — — 13,726 
Total$228,555 $955,254 $426,158 $270,756 $81,385 $165,967 $402,840 $2,530,915 
(1)Includes loans held for investment measured at fair value as of December 31, 2023. Includes fair value adjustments on loans held for investment accounted for under the fair value option.