Loans and the Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2024

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable

Loans receivable at September 30, 2024 and December 31, 2023 are summarized as follows:

	September 30, 2024		December 31, 2023
	(Dollars in thousands)
Real Estate Loans:
Commercial	$	2,256,370	$	2,217,928
Construction	654,353		669,798
Residential	743,878		682,394
Total Real Estate Loans	3,654,601		3,570,120
Commercial	1,496,480		1,358,838
Consumer and Other	69,037		63,827
Total Loans Held for Investment	5,220,118		4,992,785
Less:
Allowance for Loan Losses	(42,154)		(40,414)
Net Loans	$	5,177,964	$	4,952,371

Schedule of Financing Receivable, Allowance for Credit Loss

The following tables set forth, as of September 30, 2024, and December 31, 2023, the balance of the allowance for credit losses by loan portfolio segment. The allowance for credit losses allocated to each portfolio segment is not necessarily indicative of future losses in any particular portfolio segment and does not restrict the use of the allowance to absorb losses in other portfolio segments.

Allowance for Credit Losses and Recorded Investment in Loans Receivable

	September 30, 2024
	(Dollars in thousands)
	Real Estate: Commercial		Real Estate: Construction		Real Estate: Residential		Commercial		Consumer and Other		Total
Allowance for Loan Losses:
Beginning Balance	$	17,676	$	6,596	$	5,485	$	10,424	$	233	$	40,414
Charge-offs	(1)		(672)		(293)		(859)		(1,558)		(3,383)
Recoveries	15		-		12		264		236		527
Provision (Recovery)	394		(267)		1,118		1,756		1,595		4,596
Ending Balance	$	18,084	$	5,657	$	6,322	$	11,585	$	506	$	42,154
Reserve for Unfunded Loan Commitments:
Beginning Balance	$	206	$	1,546	$	177	$	1,372	$	23	$	3,324
Provision (Recovery)	54		(720)		5		222		4		(435)
Ending Balance	$	260	$	826	$	182	$	1,594	$	27	$	2,889
Total Allowance for Credit Losses	$	18,344	$	6,483	$	6,504	$	13,179	$	533	$	45,043

	December 31, 2023
	(Dollars in thousands)
	Real Estate: Commercial		Real Estate: Construction		Real Estate: Residential		Commercial		Consumer and Other		Total
Allowance for Loan Losses:
Beginning Balance	$	14,702	$	5,768	$	5,354	$	11,721	$	633	$	38,178
Adoption of ASU 2016-13	4,823		933		(365)		(2,483)		(248)		2,660
Beginning Balance After Adoption	19,525		6,701		4,989		9,238		385		40,838
Charge-offs	(2,049)		(36)		(42)		(2,813)		(1,489)		(6,429)
Recoveries	26		1		18		672		327		1,044
Provision (Recovery)	174		(70)		520		3,327		1,010		4,961
Ending Balance	$	17,676	$	6,596	$	5,485	$	10,424	$	233	$	40,414
Reserve for Unfunded Loan Commitments:
Beginning Balance	$	220	$	137	$	13	$	229	$	6	$	605
Adoption of ASU 2016-13	116		2,113		190		657		121		3,197
Beginning Balance After Adoption	336		2,250		203		886		127		3,802
Provision (Recovery)	(130)		(704)		(26)		486		(104)		(478)
Ending Balance	$	206	$	1,546	$	177	$	1,372	$	23	$	3,324
Total Allowance for Credit Losses	$	17,882	$	8,142	$	5,662	$	11,796	$	256	$	43,738

Schedule of Financing Receivable and Allowances Individually Evaluated

The following table summarizes, by segment, the loan balance and specific allowance allocation for those loans which have been individually evaluated.

	September 30, 2024				December 31, 2023
	Loan Balance		Specific Allocations		Loan Balance		Specific Allocations
	(Dollars in thousands)
Real Estate Loans:
Commercial	$	7,375	$	-	$	883	$	-
Construction	4,124		142		2,334		513
Residential	-		-		1,533		-
Total Real Estate Loans	11,499		142		4,750		513
Commercial	-		-		-		-
Consumer and Other	-		-		-		-
Total	$	11,499	$	142	$	4,750	$	513

Schedule of Financing Receivable Credit Quality Indicators

The following tables set forth the credit quality indicators, disaggregated by loan segment, as of September 30, 2024, and December 31, 2023:

	September 30, 2024
			Criticized
	Pass (Risk Grade 10-45)		Special Mention (Risk Grade 50)		Substandard (Risk Grade 60)		Doubtful (Risk Grade 70)		Loss (Risk Grade 80)		Total		Current Period Charge- offs
	(Dollars in thousands)
Real Estate: Commercial
Originated in 2024	$	198,896	$	-	$	-	$	-	$	-	$	198,896	$	-
Originated in 2023	190,774		22,185		139		-		-		213,098		-
Originated in 2022	718,376		38,881		3,353		-		-		760,610		2
Originated in 2021	390,941		5,910		473		-		-		397,324		-
Originated in 2020	126,015		1,967		446		-		-		128,428		4
Originated Prior to 2020	471,558		4,342		6,765		879		-		483,544		(5)
Revolving	73,370		440		660		-		-		74,470		-
Revolving Loans Converted to Term	-		-		-		-		-		-		-
Total Real Estate: Commercial	$	2,169,930	$	73,725	$	11,836	$	879	$	-	$	2,256,370	$	1
Real Estate: Construction
Originated in 2024	$	140,112	$	-	$	403	$	-	$	-	$	140,515	$	-
Originated in 2023	117,290		-		701		-		-		117,991		46
Originated in 2022	198,474		-		1,258		-		-		199,732		278
Originated in 2021	67,395		-		3,005		-		-		70,400		348
Originated in 2020	25,524		-		15		-		-		25,539		-
Originated Prior to 2020	28,172		101		2,004		-		-		30,277		-
Revolving	69,502		397		-		-		-		69,899		-
Revolving Loans Converted to Term	-		-		-		-		-		-		-
Total Real Estate: Construction	$	646,469	$	498	$	7,386	$	-	$	-	$	654,353	$	672
Real Estate: Residential
Originated in 2024	$	62,319	$	-	$	231	$	-	$	-	$	62,550	$	2
Originated in 2023	74,311		-		148		-		-		74,459		1
Originated in 2022	203,168		1,162		1,158		10		-		205,498		10
Originated in 2021	94,188		116		207		-		-		94,511		1
Originated in 2020	62,259		384		503		41		-		63,187		2
Originated Prior to 2020	132,326		1,687		5,968		251		-		140,232		73
Revolving	102,013		148		1,053		-		-		103,214		204
Revolving Loans Converted to Term	227		-		-		-		-		227		-
Total Real Estate: Residential	$	730,811	$	3,497	$	9,268	$	302	$	-	$	743,878	$	293
Commercial
Originated in 2024	$	274,743	$	1,737	$	8,155	$	-	$	-	$	284,635	$	-
Originated in 2023	258,892		2,555		1,104		-		-		262,551		19
Originated in 2022	205,033		1,029		9,441		-		-		215,503		450
Originated in 2021	98,866		2,743		1,657		-		-		103,266		271
Originated in 2020	29,771		45		576		-		-		30,392		43
Originated Prior to 2020	59,768		1,933		524		329		-		62,554		76
Revolving	529,754		5,779		2,029		-		-		537,562		-
Revolving Loans Converted to Term	17		-		-		-		-		17		-
Total Commercial	$	1,456,844	$	15,821	$	23,486	$	329	$	-	$	1,496,480	$	859
Consumer and Other
Originated in 2024	$	8,487	$	-	$	-	$	-	$	-	$	8,487	$	24
Originated in 2023	6,775		-		21		-		-		6,796		59
Originated in 2022	5,181		-		13		-		-		5,194		38
Originated in 2021	2,273		-		46		-		-		2,319		4
Originated in 2020	1,219		-		67		-		-		1,286		31
Originated Prior to 2020	25,657		-		65		-		-		25,722		40
Revolving	18,803		-		407		-		-		19,210		1,362
Revolving Loans Converted to Term	23		-		-		-		-		23		-
Total Consumer and Other	$	68,418	$	-	$	619	$	-	$	-	$	69,037	$	1,558
Total Loans	$	5,072,472	$	93,541	$	52,595	$	1,510	$	-	$	5,220,118	$	3,383

	December 31, 2023
			Criticized
	Pass (Risk Grade 10-45)		Special Mention (Risk Grade 50)		Substandard (Risk Grade 60)		Doubtful (Risk Grade 70)		Loss (Risk Grade 80)		Total		Current Period Charge- offs
	(Dollars in thousands)
Real Estate: Commercial
Originated in 2023	$	228,902	$	-	$	84	$	-	$	-	$	228,986	$	-
Originated in 2022	751,649		1,909		-		-		-		753,558		-
Originated in 2021	427,269		6,103		492		-		-		433,864		357
Originated in 2020	151,848		3,551		8		-		-		155,407		-
Originated in 2019	149,946		5,556		372		932		-		156,806		1,447
Originated Prior to 2019	379,503		1,313		7,970		335		-		389,121		245
Revolving	99,723		226		237		-		-		100,186		-
Revolving Loans Converted to Term	-		-		-		-		-		-		-
Total Real Estate: Commercial	$	2,188,840	$	18,658	$	9,163	$	1,267	$	-	$	2,217,928	$	2,049
Real Estate: Construction
Originated in 2023	$	131,617	$	-	$	-	$	-	$	-	$	131,617	$	-
Originated in 2023	322,032		647		62		-		-		322,741		-
Originated in 2021	85,438		2,601		1,229		-		-		89,268		-
Originated in 2020	22,515		31		16		-		-		22,562		-
Originated in 2019	19,402		-		1,675		-		-		21,077		1
Originated Prior to 2019	20,180		413		588		345		-		21,526		35
Revolving	60,612		395		-		-		-		61,007		-
Revolving Loans Converted to Term	-		-		-		-		-		-		-
Total Real Estate: Construction	$	661,796	$	4,087	$	3,570	$	345	$	-	$	669,798	$	36
Real Estate: Residential
Originated in 2023	$	76,662	$	-	$	-	$	-	$	-	$	76,662	$	-
Originated in 2022	170,229		433		410		14		-		171,086		-
Originated in 2021	98,329		-		708		-		-		99,037		11
Originated in 2020	68,281		386		520		57		-		69,244		1
Originated in 2019	54,902		1,112		1,061		119		-		57,194		22
Originated Prior to 2019	97,716		1,230		6,000		299		-		105,245		7
Revolving	103,252		-		654		-		-		103,906		1
Revolving Loans Converted to Term	20		-		-		-		-		20		-
Total Real Estate: Residential	$	669,391	$	3,161	$	9,353	$	489	$	-	$	682,394	$	42
Commercial
Originated in 2023	$	303,160	$	1,439	$	709	$	-	$	-	$	305,308	$	-
Originated in 2022	267,678		698		1,196		-		-		269,572		247
Originated in 2021	136,291		5,483		928		16		-		142,718		25
Originated in 2020	48,990		448		921		42		-		50,401		49
Originated in 2019	21,137		584		640		231		-		22,592		1,632
Originated Prior to 2019	61,166		3,843		341		251		-		65,601		658
Revolving	499,642		2,128		573		28		-		502,371		202
Revolving Loans Converted to Term	275		-		-		-		-		275		-
Total Commercial	$	1,338,339	$	14,623	$	5,308	$	568	$	-	$	1,358,838	$	2,813
Consumer and Other
Originated in 2023	$	11,245	$	-	$	-	$	-	$	-	$	11,245	$	8
Originated in 2022	7,219		-		27		-		-		7,246		78
Originated in 2021	3,372		-		55		-		-		3,427		29
Originated in 2020	1,850		-		88		-		-		1,938		11
Originated in 2019	2,359		-		40		-		-		2,399		18
Originated Prior to 2019	18,280		-		92		-		-		18,372		61
Revolving	18,814		100		160		-		-		19,074		1,284
Revolving Loans Converted to Term	126		-		-		-		-		126		-
Total Consumer and Other	$	63,265	$	100	$	462	$	-	$	-	$	63,827	$	1,489
Total Loans	$	4,921,631	$	40,629	$	27,856	$	2,669	$	-	$	4,992,785	$	6,429

Schedule of Financing Receivable, Past Due

The following tables provide an analysis of the aging of loans and leases as of September 30, 2024, and December 31, 2023. All loans greater than 90 days past due are generally placed on nonaccrual status.

Aged Analysis of Past Due Loans Receivable

	September 30, 2024
	(Dollars in thousands)
	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days Past Due		Total Past Due		Current		Total Loans Receivable		Recorded Investment Over 90 Days Past Due and Still Accruing
Real Estate Loans:
Commercial	$	3,745	$	77	$	6,751	$	10,573	$	2,245,797	$	2,256,370	$	-
Construction	7,511		-		5,171		12,682		641,671		654,353		56
Residential	804		1,246		4,865		6,915		736,963		743,878		-
Total Real Estate Loans	12,060		1,323		16,787		30,170		3,624,431		3,654,601		56
Commercial	6,365		522		5,346		12,233		1,484,247		1,496,480		103
Consumer and Other	151		41		520		712		68,325		69,037		26
Total	$	18,576	$	1,886	$	22,653	$	43,115	$	5,177,003	$	5,220,118	$	185

	December 31, 2023
	(Dollars in thousands)
	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days Past Due		Total Past Due		Current		Total Loans Receivable		Recorded Investment Over 90 Days Past Due and Still Accruing
Real Estate Loans:
Commercial	$	240	$	536	$	2,954	$	3,730	$	2,214,198	$	2,217,928	$	44
Construction	279		1,320		3,198		4,797		665,001		669,798		-
Residential	1,792		1,207		4,058		7,057		675,337		682,394		20
Total Real Estate Loans	2,311		3,063		10,210		15,584		3,554,536		3,570,120		64
Commercial	1,101		71		1,622		2,794		1,356,044		1,358,838		52
Consumer and Other	280		252		188		720		63,107		63,827		11
Total	$	3,692	$	3,386	$	12,020	$	19,098	$	4,973,687	$	4,992,785	$	127

Schedule of Financing Receivable, Nonaccrual

The following table presents non-accrual loans by segment as of September 30, 2024, and December 31, 2023, respectively.

	September 30, 2024		December 31, 2023
	(Dollars in thousands)
Real Estate Loans:
Commercial	$	7,100	$	3,280
Construction	5,736		3,543
Residential	6,909		7,352
Total Real Estate Loans	19,745		14,175
Commercial	5,581		2,395
Consumer and Other	548		373
Total	$	25,874	$	16,943