LOANS AND THE ALLOWANCE FOR CREDIT LOSSES (Tables)

3 Months Ended

Mar. 31, 2025

The following presents a summary of the Company’s loans at amortized cost as of the dates noted:


(dollars in thousands)	March 31, 2025		December 31, 2024
Cash, Securities, and Other	$	100,994	$	119,834
Consumer and Other	16,829		17,482
Construction and Development	290,110		314,481
1-4 Family Residential	973,718		962,901
Non-Owner Occupied CRE	633,641		611,239
Owner Occupied CRE	181,207		172,019
Commercial and Industrial	222,756		220,326
Total	2,419,255		2,418,282

Allowance for credit losses	(17,956)		(18,330)
Total, net	$	2,401,299	$	2,399,952
Loans accounted for under the fair value option(1)	6,112		7,283
Loans, net	$	2,407,411	$	2,407,235

______________________________________

(1)Includes $6.3 million and $7.5 million of unpaid principal balance of loans held for investment measured at fair value as of March 31, 2025 and December 31, 2024, 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, 2025	30-59 Days Past Due		60-89 Days Past Due		90 or More Days Past Due		Total Loans Past Due		Current		Total Amortized Cost		Loans Accounted for Under the Fair Value Option(1)		Total Loans
Cash, Securities, and Other	$	770	$	—	$	1,703	$	2,473	$	98,521	$	100,994	$	—	$	100,994
Consumer and Other	30		—		—		30		16,799		16,829		6,112		22,941
Construction and Development	—		1,622		—		1,622		288,488		290,110		—		290,110
1-4 Family Residential	2,105		1,364		—		3,469		970,249		973,718		—		973,718
Non-Owner Occupied CRE	—		—		—		—		633,641		633,641		—		633,641
Owner Occupied CRE	—		—		—		—		181,207		181,207		—		181,207
Commercial and Industrial	—		806		10,870		11,676		211,080		222,756		—		222,756
Total	$	2,905	$	3,792	$	12,573	$	19,270	$	2,399,985	$	2,419,255	$	6,112	$	2,425,367


December 31, 2024	30-59 Days Past Due		60-89 Days Past Due		90 or More Days Past Due		Total Loans Past Due		Current		Total Amortized Cost		Loans Accounted for Under the Fair Value Option(1)		Total Loans
Cash, Securities, and Other	$	—	$	—	$	1,704	$	1,704	$	118,130	$	119,834	$	—	$	119,834
Consumer and Other	—		—		—		—		17,482		17,482		7,283		24,765
Construction and Development	—		—		—		—		314,481		314,481		—		314,481
1-4 Family Residential	3,971		—		—		3,971		958,930		962,901		—		962,901
Non-Owner Occupied CRE	—		—		—		—		611,239		611,239		—		611,239
Owner Occupied CRE	350		—		—		350		171,669		172,019		—		172,019
Commercial and Industrial	4,999		—		10,870		15,869		204,457		220,326		—		220,326
Total	$	9,320	$	—	$	12,574	$	21,894	$	2,396,388	$	2,418,282	$	7,283	$	2,425,565

(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

For the three months ended March 31, 2025, there were no loan modifications.

The following 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.


(dollars in thousands)	Principal forgiveness		Interest rate reduction		Term extension		Combination: term extension and principal forgiveness		Combination: term extension and interest rate reduction		Total class of financing receivable





Commercial and Industrial	$	—	$	—	$	1,037	$	—	$	—	0.3	%
Total	$	—	$	—	$	1,037	$	—	$	—

The following presents the financial effect by type of modification made to borrowers experiencing financial difficulty during the periods noted:

Three Months Ended March 31, 2024

(dollars in thousands)

Principal forgiveness

Weighted average interest rate reduction

Weighted average term extension

Commercial and Industrial

$—

—%

5 months

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, 2025
(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	$	—





Commercial and Industrial	10,870		11,047		—
Total	$	12,574	$	12,751	$	—

(1)As of March 31, 2025, the Company had an allowance of $45 thousand on non-accrual loans.


	As of December 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	$	—




Commercial and Industrial	10,870		11,048		—
Total	$	12,574	$	12,752	$	—

(1)As of December 31, 2024, the Company had an allowance of $0.1 million on non-accrual 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, 2025
	Collateral Dependent Loans
(dollars in thousands)	Secured by Real Estate		Secured by Cash and Securities		Secured by Other		Total
Cash, Securities, and Other	$	—	$	1,704	$	—	$	1,704




Owner Occupied CRE	1,049		—		—		1,049
Commercial and Industrial	—		—		12,004		12,004
Total	$	1,049	$	1,704	$	12,004	$	14,757


	As of December 31, 2024
	Collateral Dependent Loans
(dollars in thousands)	Secured by Real Estate		Secured by Cash and Securities		Secured by Other		Total
Cash, Securities, and Other	$	—	$	1,704	$	—	$	1,704





Commercial and Industrial	—		—		12,015		12,015
Total	$	—	$	1,704	$	12,015	$	13,719

Schedule of activity in the Company's allowance for loan losses by portfolio class

The following 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, 2025:
Beginning balance	$	410	$	185	$	5,184	$	5,200	$	4,340	$	654	$	2,357	$	18,330

(Release) provision for credit losses	(19)		(54)		(885)		117		(30)		261		802		192
Charge-offs	—		—		—		—		—		—		(594)		(594)
Recoveries	—		20		—		4		—		—		4		28
Ending balance	$	391	$	151	$	4,299	$	5,321	$	4,310	$	915	$	2,569	$	17,956


(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

Summary of recorded investment in the Company's loans by class and by credit quality indicator

The following tables present 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, 2025 and December 31, 2024. 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 (dollars in thousands):


	Term Loans Amortized Cost by Origination Year
March 31, 2025	2025		2024		2023		2022		2021		Prior		Revolving Loans Amortized Cost Basis		Total
Cash, Securities, and Other
Pass	$	82	$	1,351	$	6,085	$	3,606	$	12,580	$	17,640	$	57,946	$	99,290
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		1,704		1,704
Doubtful	—		—		—		—		—		—		—		—

Total Cash, Securities, and Other	$	82	$	1,351	$	6,085	$	3,606	$	12,580	$	17,640	$	59,650	$	100,994
Current year-to-date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Consumer and Other
Pass	502		3,587		—		1,417		343		774		10,156		16,779
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		50		50
Doubtful	—		—		—		—		—		—		—		—
Not rated(1)	—		1		—		5,276		745		90		—		6,112
Total Consumer and Other	$	502	$	3,588	$	—	$	6,693	$	1,088	$	864	$	10,206	$	22,941
Current year-to-date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Construction and Development
Pass	$	2,496	$	53,484	$	51,359	$	156,937	$	967	$	9,407	$	1,150	$	275,800
Special mention	—		—		—		—		—		—		—		—
Substandard	—		1,828		3,817		8,665		—		—		—		14,310
Doubtful	—		—		—		—		—		—		—		—

Total Construction and Development	$	2,496	$	55,312	$	55,176	$	165,602	$	967	$	9,407	$	1,150	$	290,110
Current year-to-date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
1-4 Family Residential
Pass	$	54,009	$	72,101	$	96,669	$	344,362	$	123,292	$	165,064	$	116,856	$	972,353
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		1,365		—		—		—		1,365
Doubtful	—		—		—		—		—		—		—		—

Total 1-4 Family Residential	$	54,009	$	72,101	$	96,669	$	345,727	$	123,292	$	165,064	$	116,856	$	973,718
Current year-to-date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Non-Owner Occupied CRE
Pass	$	5,273	$	47,684	$	52,837	$	280,271	$	94,813	$	122,292	$	30,471	$	633,641
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—

Total Non-Owner Occupied CRE	$	5,273	$	47,684	$	52,837	$	280,271	$	94,813	$	122,292	$	30,471	$	633,641
Current year-to-date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Owner Occupied CRE
Pass	$	12,883	$	4,156	$	3,103	$	43,531	$	41,274	$	72,010	$	1,820	$	178,777
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		2,083		—		—		347		2,430
Doubtful	—		—		—		—		—		—		—		—

Total Owner Occupied CRE	$	12,883	$	4,156	$	3,103	$	45,614	$	41,274	$	72,010	$	2,167	$	181,207
Current year-to-date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


	Term Loans Amortized Cost by Origination Year
March 31, 2025	2025		2024		2023		2022		2021		Prior		Revolving Loans Amortized Cost Basis		Total
Commercial and Industrial
Pass	$	17,361	$	21,899	$	9,213	$	53,584	$	12,101	$	29,206	$	52,351	$	195,715
Special mention	—		—		—		481		—		—		1,873		2,354
Substandard	—		—		434		4,708		—		14,243		5,302		24,687
Doubtful	—		—		—		—		—		—		—		—

Total Commercial and Industrial	$	17,361	$	21,899	$	9,647	$	58,773	$	12,101	$	43,449	$	59,526	$	222,756
Current year-to-date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	594	$	—	$	594
Total pass	$	92,606	$	204,262	$	219,266	$	883,708	$	285,370	$	416,393	$	270,750	$	2,372,355
Total special mention	—		—		—		481		—		—		1,873		2,354
Total substandard	—		1,828		4,251		16,821		—		14,243		7,403		44,546
Total doubtful	—		—		—		—		—		—		—		—
Total not rated	—		1		—		5,276		745		90		—		6,112
Total	$	92,606	$	206,091	$	223,517	$	906,286	$	286,115	$	430,726	$	280,026	$	2,425,367

(1)Includes loans held for investment measured at fair value as of March 31, 2025. 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, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
Cash, Securities, and Other
Pass	$	11,564	$	6,123	$	3,649	$	13,157	$	5,143	$	13,912	$	64,582	$	118,130
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		1,704		1,704
Doubtful	—		—		—		—		—		—		—		—

Total Cash, Securities, and Other	$	11,564	$	6,123	$	3,649	$	13,157	$	5,143	$	13,912	$	66,286	$	119,834
Current year-to-date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Consumer and Other
Pass	$	3,587	$	4	$	1,518	$	355	$	380	$	548	$	11,090	$	17,482
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Not rated(1)	1		—		6,215		940		71		56		—		7,283
Total Consumer and Other	$	3,588	$	4	$	7,733	$	1,295	$	451	$	604	$	11,090	$	24,765
Current year-to-date gross charge-offs	$	—	$	1	$	—	$	—	$	10	$	39	$	—	$	50
Construction and Development
Pass	$	48,872	$	58,224	$	191,874	$	992	$	9,395	$	—	$	839	$	310,196
Special mention	—		—		—		—		—		—		—		—
Substandard	469		3,816		—		—		—		—		—		4,285
Doubtful	—		—		—		—		—		—		—		—

Total Construction and Development	$	49,341	$	62,040	$	191,874	$	992	$	9,395	$	—	$	839	$	314,481
Current year-to-date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
1-4 Family Residential
Pass	$	98,612	$	89,537	$	351,026	$	126,116	$	104,427	$	63,930	$	129,253	$	962,901
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—

Total 1-4 Family Residential	$	98,612	$	89,537	$	351,026	$	126,116	$	104,427	$	63,930	$	129,253	$	962,901
Current year-to-date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


	Term Loans Amortized Cost by Origination Year
December 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
Non-Owner Occupied CRE
Pass	$	48,445	$	42,527	$	260,055	$	101,067	$	70,896	$	57,676	$	30,573	$	611,239
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—

Total Non-Owner Occupied CRE	$	48,445	$	42,527	$	260,055	$	101,067	$	70,896	$	57,676	$	30,573	$	611,239
Current year-to-date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Owner Occupied CRE
Pass	$	4,177	$	3,126	$	44,034	$	41,663	$	29,402	$	45,640	$	1,531	$	169,573
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		2,096		—		—		—		350		2,446
Doubtful	—		—		—		—		—		—		—		—

Total Owner Occupied CRE	$	4,177	$	3,126	$	46,130	$	41,663	$	29,402	$	45,640	$	1,881	$	172,019
Current year-to-date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial and Industrial
Pass	$	21,922	$	9,741	$	58,160	$	11,324	$	5,435	$	27,237	$	58,665	$	192,484
Special mention	—		456		685		—		—		—		7,979		9,120
Substandard	967		178		1,988		—		4,422		10,871		296		18,722
Doubtful	—		—		—		—		—		—		—		—

Total Commercial and Industrial	$	22,889	$	10,375	$	60,833	$	11,324	$	9,857	$	38,108	$	66,940	$	220,326
Current year-to-date gross charge-offs	$	—	$	1,202	$	16	$	6,935	$	1,199	$	—	$	—	$	9,352
Total pass	$	237,179	$	209,282	$	910,316	$	294,674	$	225,078	$	208,943	$	296,533	$	2,382,005
Total special mention	—		456		685		—		—		—		7,979		9,120
Total substandard	1,436		3,994		4,084		—		4,422		10,871		2,350		27,157
Total doubtful	—		—		—		—		—		—		—		—
Total not rated	1		—		6,215		940		71		56		—		7,283
Total	$	238,616	$	213,732	$	921,300	$	295,614	$	229,571	$	219,870	$	306,862	$	2,425,565

(1)Includes loans held for investment measured at fair value as of December 31, 2024. Includes fair value adjustments on loans held for investment accounted for under the fair value option.