Loans and the Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2024

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable

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

	March 31, 2024		December 31, 2023
	(Dollars in thousands)
Real Estate Loans:
Commercial	$	2,215,889	$	2,217,928
Construction	662,013		669,798
Residential	717,007		682,394
Total Real Estate Loans	3,594,909		3,570,120
Commercial	1,426,957		1,358,838
Consumer and Other	66,973		63,827
Total Loans Held for Investment	5,088,839		4,992,785
Less:
Allowance for Loan Losses	(41,165)		(40,414)
Net Loans	$	5,047,674	$	4,952,371

Financing Receivable, Allowance for Credit Loss

	March 31, 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	16		(49)		(71)		1		(430)		(533)
Recoveries	5		-		3		40		93		141
Provision (Recovery)	83		(58)		616		(98)		600		1,143
Ending Balance	$	17,780	$	6,489	$	6,033	$	10,367	$	496	$	41,165
Reserve for Unfunded Loan Commitments:
Beginning Balance	$	206	$	1,546	$	177	$	1,372	$	23	$	3,324
Provision (Recovery)	57		(213)		(24)		209		14		43
Ending Balance	$	263	$	1,333	$	153	$	1,581	$	37	$	3,367
Total Allowance for Credit Losses	$	18,043	$	7,822	$	6,186	$	11,948	$	533	$	44,532

	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

	March 31, 2024				December 31, 2023
	Loan Balance		Specific Allocations		Loan Balance		Specific Allocations
	(Dollars in thousands)
Real Estate Loans:
Commercial	$	1,719	$	38	$	883	$	-
Construction	5,345		569		2,334		513
Residential	1,500		-		1,533		-
Total Real Estate Loans	8,564		607		4,750		513
Commercial	-		-		-		-
Consumer and Other	-		-		-		-
Total	$	8,564	$	607	$	4,750	$	513

Financing Receivable Credit Quality Indicators

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

	March 31, 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	$	59,026	$	-	$	-	$	-	$	-	$	59,026	$	-
Originated in 2023	231,816		-		82		-		-		231,898		-
Originated in 2022	741,590		17,577		-		-		-		759,167		-
Originated in 2021	406,928		14,704		490		-		-		422,122		-
Originated in 2020	131,068		3,514		189		-		-		134,771		3
Originated Prior to 2020	513,710		10,803		2,591		1,235		-		528,339		(19)
Revolving	79,679		644		243		-		-		80,566		-
Revolving Loans Converted to Term	-		-		-		-		-		-		-
Total Real Estate: Commercial	$	2,163,817	$	47,242	$	3,595	$	1,235	$	-	$	2,215,889	$	(16)
Real Estate: Construction
Originated in 2024	$	34,427	$	-	$	-	$	-	$	-	$	34,427	$	-
Originated in 2023	138,845		241		419		-		-		139,505		7
Originated in 2022	272,528		-		706		-		-		273,234		9
Originated in 2021	77,592		-		3,594		-		-		81,186		33
Originated in 2020	37,257		-		16		-		-		37,273		-
Originated Prior to 2020	32,672		444		2,284		345		-		35,745		-
Revolving	60,247		396		-		-		-		60,643		-
Revolving Loans Converted to Term	-		-		-		-		-		-		-
Total Real Estate: Construction	$	653,568	$	1,081	$	7,019	$	345	$	-	$	662,013	$	49
Real Estate: Residential
Originated in 2024	$	19,660	$	-	$	197	$	-	$	-	$	19,857	$	-
Originated in 2023	72,599		-		25		-		-		72,624		-
Originated in 2022	196,817		338		403		13		-		197,571		-
Originated in 2021	96,888		-		729		-		-		97,617		-
Originated in 2020	67,233		386		501		52		-		68,172		2
Originated Prior to 2020	143,811		2,223		7,490		328		-		153,852		62
Revolving	106,580		-		444		-		-		107,024		7
Revolving Loans Converted to Term	290		-		-		-		-		290		-
Total Real Estate: Residential	$	703,878	$	2,947	$	9,789	$	393	$	-	$	717,007	$	71
Commercial
Originated in 2024	$	92,339	$	203	$	37	$	-	$	-	$	92,579	$	-
Originated in 2023	284,207		1,675		49		-		-		285,931		3
Originated in 2022	258,119		1,043		1,476		-		-		260,638		-
Originated in 2021	124,903		2,297		4,261		16		-		131,477		16
Originated in 2020	46,538		224		901		-		-		47,663		39
Originated Prior to 2020	74,052		3,739		1,718		451		-		79,960		(59)
Revolving	524,442		2,724		1,515		28		-		528,709		-
Revolving Loans Converted to Term	-		-		-		-		-		-		-
Total Commercial	$	1,404,600	$	11,905	$	9,957	$	495	$	-	$	1,426,957	$	(1)
Consumer and Other
Originated in 2024	$	2,916	$	-	$	-	$	-	$	-	$	2,916	$	-
Originated in 2023	8,931		-		56		-		-		8,987		1
Originated in 2022	6,465		-		17		-		-		6,482		13
Originated in 2021	2,852		-		52		-		-		2,904		4
Originated in 2020	1,533		-		79		-		-		1,612		29
Originated Prior to 2020	24,854		-		123		-		-		24,977		-
Revolving	18,835		-		260		-		-		19,095		383
Revolving Loans Converted to Term	-		-		-		-		-		-		-
Total Consumer and Other	$	66,386	$	-	$	587	$	-	$	-	$	66,973	$	430
Total Loans	$	4,992,249	$	63,175	$	30,947	$	2,468	$	-	$	5,088,839	$	533

	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

Financing Receivable, Past Due

The following tables provide an analysis of the aging of loans and leases as of March 31, 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

	March 31, 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	$	1,071	$	10,932	$	2,901	$	14,904	$	2,200,985	$	2,215,889	$	662
Construction	12		594		5,811		6,417		655,596		662,013		-
Residential	1,724		946		4,556		7,226		709,781		717,007		123
Total Real Estate Loans	2,807		12,472		13,268		28,547		3,566,362		3,594,909		785
Commercial	2,239		909		3,277		6,425		1,420,532		1,426,957		70
Consumer and Other	247		34		470		751		66,222		66,973		-
Total	$	5,293	$	13,415	$	17,015	$	35,723	$	5,053,116	$	5,088,839	$	855

	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

Financing Receivable, Nonaccrual

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

	March 31, 2024		December 31, 2023
	(Dollars in thousands)
Real Estate Loans:
Commercial	$	2,523	$	3,280
Construction	6,790		3,543
Residential	7,653		7,352
Total Real Estate Loans	16,966		14,175
Commercial	3,297		2,395
Consumer and Other	515		373
Total	$	20,778	$	16,943