LOANS

9 Months Ended

Sep. 30, 2022

LOANS

LOANS

NOTE 4: LOANS

Loans by loan class, or major loan category, as of the dates indicated below were as follows:

(Dollars in thousands)	September 30, 2022			December 31, 2021
Commercial and industrial	$	568,071	18.1%	$	634,384	22.0%
Real estate:
Commercial real estate		1,242,118	39.6%		1,091,969	38.0%
Construction and development		507,570	16.2%		460,719	16.0%
1-4 family residential		288,456	9.2%		277,273	9.6%
Multi-family residential		370,391	11.8%		286,396	10.0%
Consumer		24,509	0.8%		28,090	1.0%
Agriculture		11,185	0.4%		7,941	0.3%
Other		123,591	3.9%		89,655	3.1%
Total gross loans		3,135,891	100.0%		2,876,427	100.0%
Less allowance for credit losses for loans		(32,577)			(31,345)
Less deferred loan fees and unearned discounts		(9,470)			(8,739)
Less loans held for sale		—			(164)
Loans, net	$	3,093,844		$	2,836,179

Accrued interest receivable for loans was $9.0 million and $9.6 million at September 30, 2022 and December 31, 2021, respectively, and was included in other assets in the condensed consolidated balance sheets.

From time to time, the Company will acquire and dispose of interests in loans under participation agreements with other financial institutions. Loan participations purchased and sold during the nine months ending September 30, 2022 and 2021, by loan class, were as follows:

	Participations		Participations
(Dollars in thousands)	Purchased		Sold
September 30, 2022
Commercial and industrial	$	24,192		1,943
Commercial real estate		30,455		1,247
Construction and development		—		122
Other		5,261		—
	$	59,908	$	3,312
September 30, 2021
Commercial and industrial	$	—	$	1,336
Commercial real estate		—		375
Construction and development		—		22
Other		1,941		—
	$	1,941	$	1,733

The Company participates in the SBA loan program. When advantageous, the Company will sell the guaranteed portions of these loans with servicing retained. SBA loans that were sold with servicing retained during the nine months ended September 30, 2022 and 2021, totaled $2.8 million and $3.7 million, respectively. Net gains recognized on sales of SBA loans were $328,000 and $436,000 for the nine months ended September 30, 2022 and 2021, respectively.