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Loans
 3 Months Ended
Mar. 31, 2024
Receivables [Abstract]  
Loans Loans
The table below identifies the Company’s loan portfolio segments and classes.
Portfolio SegmentClass of Financing Receivable
CommercialOwner occupied real estate
Non-owner occupied real estate
Residential spec homes
Development & spec land
Commercial and industrial
Real estateResidential mortgage
Residential construction
Mortgage warehouseMortgage warehouse
ConsumerInstallment
Indirect auto
Home equity
Portfolio segment is defined as a level at which an entity develops and documents a systematic methodology to determine its allowance for credit losses. Class of financing receivable is defined as a group of financing receivables determined on the basis of both of the following, 1) risk characteristics of the financing receivable, and 2) an entity’s method for monitoring and assessing credit risk. Generally, the Bank does not move loans from a revolving loan to a term loan other than construction loans. Construction loans are reviewed and rewritten prior to being originated as a term loan.
The following table presents total loans outstanding by portfolio class, as of March 31, 2024 and December 31, 2023:
March 31,
2024		December 31,
2023
Commercial
Owner occupied real estate$653,144 $640,731 
Non–owner occupied real estate1,287,474 1,273,838 
Residential spec homes10,892 13,489 
Development & spec land33,213 34,039 
Commercial and industrial765,043 712,863 
Total commercial2,749,766 2,674,960 
Real estate
Residential mortgage757,760 654,295 
Residential construction24,311 26,841 
Mortgage warehouse56,548 45,078 
Total real estate838,619 726,214 
Consumer
Installment109,370 52,366 
Indirect auto360,835 399,946 
Home equity559,585 564,144 
Total consumer1,029,790 1,016,456 
Total loans4,618,175 4,417,630 
Allowance for credit losses(50,387)(50,029)
Net loans$4,567,788 $4,367,601 
Total loans include net deferred loan costs of $22.9 million at March 31, 2024 and $21.9 million at December 31, 2023, respectively.

The risk characteristics of each loan portfolio segment are as follows:

Commercial
Commercial loans are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected, and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee; however, some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers.
Commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves larger loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets, the general economy or fluctuations in interest rates. The properties securing the Company’s commercial real estate portfolio are diverse in terms of property type, and are monitored for concentrations of credit. Management monitors and evaluates commercial real estate loans based on collateral, cash flow and risk grade criteria. As a general rule, the Company avoids financing
single purpose projects unless other underwriting factors are present to help mitigate risk. In addition, management tracks the level of owner occupied commercial real estate loans versus non-owner occupied loans.

Real Estate and Consumer
With respect to residential loans that are secured by 1-4 family residences and are generally owner occupied, the Company generally establishes a maximum loan-to-value ratio and may require private mortgage insurance if that ratio is exceeded. Home equity loans are typically secured by a subordinate interest in 1-4 family residences, and consumer loans are secured by consumer assets such as automobiles or recreational vehicles. Some consumer loans are unsecured such as small installment loans and certain lines of credit. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment can also be impacted by changes in property values on residential properties. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers.

Mortgage Warehousing
Horizon’s mortgage warehouse lending has specific mortgage companies as customers of Horizon Bank. Individual mortgage loans originated by these mortgage companies are funded as a secured borrowing with a pledge of collateral under Horizon’s agreement with the mortgage company. Each mortgage loan funded by Horizon undergoes an underwriting review by Horizon to the end investor guidelines and is assigned to Horizon until the loan is sold to the secondary market by the mortgage company. In addition, Horizon takes possession of each original note and forwards such note to the end investor once the mortgage company has sold the loan. At the time a loan is transferred to the secondary market, the mortgage company reacquires the loan under its option within the agreement. Due to the reacquire feature contained in the agreement, the transaction does not qualify as a sale and therefore is accounted for as a secured borrowing with a pledge of collateral pursuant to the agreement with the mortgage company. When the individual loan is sold to the end investor by the mortgage company, the proceeds from the sale of the loan are received by Horizon and used to pay off the loan balance with Horizon along with any accrued interest and any related fees. The remaining balance from the sale is forwarded to the mortgage company. These individual loans typically are sold by the mortgage company within 30 days and are seldom held more than 90 days. Interest income is accrued during this period and collected at the time each loan is sold. Fee income for each loan sold is collected when the loan is sold, and no costs are deferred due to the term between each loan funding and related payoff, which is typically less than 30 days.
Based on the agreements with each mortgage company, at any time a mortgage company can reacquire from Horizon its outstanding loan balance on an individual mortgage and regain possession of the original note. Horizon also has the option to request that the mortgage company reacquire an individual mortgage. Should this occur, Horizon would return the original note and reassign the assignment of the mortgage to the mortgage company. Also, in the event that the end investor would not be able to honor the purchase commitment and the mortgage company would not be able to reacquire its loan on an individual mortgage, Horizon would be able to exercise its rights under the agreement.
Non–performing Loans

The following table presents non–accrual loans and loans past due over 90 days still on accrual by class of loans at March 31, 2024:

March 31, 2024
Non–accrualLoans Past
Due Over 90
Days Still
Accruing		Non–accruing Loans with no Allowance for Credit Losses
Commercial
Owner occupied real estate$3,563 $— $2,728 
Non–owner occupied real estate471 — 471 
Residential spec homes— — — 
Development & spec land619 — 619 
Commercial and industrial840 — 20 
Total commercial5,493 — 3,838 
Real estate
Residential mortgage8,725 — — 
Residential construction— — — 
Mortgage warehouse— — — 
Total real estate8,725 — — 
Consumer
Installment135 3 — 
Indirect auto944 64 — 
Home equity3,756 41 — 
Total consumer4,835 108 — 
Total$19,053 $108 $3,838 
The following table presents non–accrual loans and loans past due over 90 days still on accrual by class of loan at December 31, 2023:

December 31, 2023
Non–accrualLoans Past
Due Over 90
Days Still
Accruing		Non–accruing Loans with no Allowance for Credit Losses
Commercial
Owner occupied real estate$2,636 $— $1,789 
Non–owner occupied real estate3,485 — 1,242 
Residential spec homes— — — 
Development & spec land617 — 617 
Commercial and industrial624 — 20 
Total commercial7,362 — 3,668 
Real estate
Residential mortgage8,058 — — 
Residential construction— — — 
Mortgage warehouse— — — 
Total real estate8,058 — — 
Consumer
Installment88 — — 
Indirect auto899 299 — 
Home equity3,303 260 — 
Total consumer4,290 559 — 
Total$19,710 $559 $3,668 
There was no interest income recognized on non–accrual loans during the three months ended March 31, 2024 and 2023, respectively, while the loans were in non–accrual status.
The following table presents the payment status by class of loan at March 31, 2024:
March 31, 2024
Current30–59 Days
Past Due		60–89 Days
Past Due		90 Days or
Greater
Past Due		Total 
Past Due
Loans		Total
Loans
Commercial
Owner occupied real estate$650,964 $1,214 $— $966 $2,180 $653,144 
Non–owner occupied real estate1,286,367 — 1,107 — 1,107 1,287,474 
Residential spec homes10,892 — — — — 10,892 
Development & spec land33,213 — — — — 33,213 
Commercial and industrial762,590 1,743 690 20 2,453 765,043 
Total commercial2,744,026 2,957 1,797 986 5,740 2,749,766 
Real estate
Residential mortgage751,197 3,261 809 2,493 6,563 757,760 
Residential construction24,311 — — — — 24,311 
Mortgage warehouse56,548 — — — — 56,548 
Total real estate832,056 3,261 809 2,493 6,563 838,619 
Consumer
Installment108,964 118 214 74 406 109,370 
Indirect auto356,423 3,405 615 392 4,412 360,835 
Home equity553,731 3,747 497 1,610 5,854 559,585 
Total consumer1,019,118 7,270 1,326 2,076 10,672 1,029,790 
Total$4,595,200 $13,488 $3,932 $5,555 $22,975 $4,618,175 
The following table presents the payment status by class of loan at December 31, 2023:
December 31, 2023
Current30–59 Days
Past Due		60–89 Days
Past Due		90 Days or
Greater
Past Due		Total 
Past Due
Loans		Total
Commercial
Owner occupied real estate$638,389 $2,342 $— $— $2,342 $640,731 
Non–owner occupied real estate1,273,791 — — 47 47 1,273,838 
Residential spec homes13,489 — — — — 13,489 
Development & spec land33,036 — 1,003 — 1,003 34,039 
Commercial and industrial710,567 1,659 54 583 2,296 712,863 
Total commercial2,669,272 4,001 1,057 630 5,688 2,674,960 
Real estate
Residential mortgage646,984 2,823 2,353 2,135 7,311 654,295 
Residential construction26,841 — — — — 26,841 
Mortgage warehouse45,078 — — — — 45,078 
Total real estate718,903 2,823 2,353 2,135 7,311 726,214 
Consumer
Installment52,001 304 10 51 365 52,366 
Indirect auto393,615 4,958 736 637 6,331 399,946 
Home equity558,062 3,748 1,217 1,117 6,082 564,144 
Total consumer1,003,678 9,010 1,963 1,805 12,778 1,016,456 
Total$4,391,853 $15,834 $5,373 $4,570 $25,777 $4,417,630 
The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified due date.
Modified Loans
The Company adopted ASU 2022–02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, during the first quarter of 2023. These amendments eliminated the troubled debt restructured (“TDR”) recognition measurement guidance and, instead, require that an entity evaluate (consistent with the accounting for other loan modifications) whether the modification represents a new loan or a continuation of an existing loan. The amendments also enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. During the three months ended March 31, 2024 and March 31, 2023, the Company did not modify any troubled loans.
Collateral Dependent Financial Assets
A collateral dependent financial loan relies solely on the operation or sale of the collateral for repayment. In evaluating the overall risk associated with the loan, the Company considers character, overall financial condition and resources, and payment record of the borrower; the prospects for support from any financially responsible guarantors; and the nature and degree of protection provided by the cash flow and value of any underlying collateral. However, as other sources of repayment become inadequate over time, the significance of the collateral's value increases and the loan may become collateral dependent.
The tables below present the amortized cost basis and allowance for credit losses (“ACL”) allocated for collateral dependent loans in accordance with ASC 326, which are individually evaluated to determine expected credit losses, at March 31, 2024 and December 31, 2023.
March 31, 2024
Real EstateAccounts Receivable/EquipmentOtherTotalACL
Allocation
Commercial
Owner occupied real estate$3,563 $— $— $3,563 $237 
Non–owner occupied real estate471 — — 471 — 
Development & spec land619 — — 619 — 
Commercial and industrial782 39 20 841 804 
Total commercial5,435 39 20 5,494 1,041 
Total collateral dependent loans$5,435 $39 $20 $5,494 $1,041 
December 31, 2023
Real EstateAccounts Receivable/EquipmentOtherTotalACL
Allocation
Commercial
Owner occupied real estate$2,636 $— $— $2,636 $190 
Non–owner occupied real estate3,485 — — 3,485 699 
Residential spec homes617 — — 617 — 
Commercial and industrial563 42 20 625 604 
Total commercial7,301 42 20 7,363 1,493 
Total collateral dependent loans$7,301 $42 $20 $7,363 $1,493 
Credit Quality Indicators
Horizon Bank’s processes for determining credit quality differ slightly depending on whether a new loan or a renewed loan is being underwritten, or whether an existing loan is being re–evaluated for credit quality. The latter usually occurs upon receipt of current financial information or other pertinent data that would trigger a change in the credit quality grade.
•For new and renewed commercial loans, the Bank’s Credit Department, which acts independently of the loan officer, assigns the credit quality grade to the loan. Loan grades for loans with an aggregate credit exposure that exceeds the authorities in the respective regions (ranging from $3,000,000 to $6,000,000) are validated by the Loan Committee, which is chaired by the Chief Commercial Banking Officer (“CCBO”).
•Commercial loan officers are responsible for reviewing their loan portfolios and promptly assessing any adverse change in credit quality and revising the risk rating appropriately. When circumstances warrant a change in the credit quality grade, loan officers are required to notify the Credit Department of the change in the credit quality grade. Downgrades are accepted immediately, however, lenders must present their factual information to the Credit
Department when recommending an upgrade. Downgrades to impaired status require the concurrence of the CCBO and the Senior Workout Loan Manager.
•The CCBO, or a designee, meets periodically with loan officers to discuss the status of past due loans and classified loans. These meetings are also designed to give the loan officers an opportunity to identify an existing loan that should be downgraded to a classified grade.
•Monthly, senior management meets as members of the Watch Committee, which reviews all of the past due, classified, and impaired loans and the relative trends of these assets. This committee also reviews the actions taken by management regarding foreclosure mitigation, loan extensions, loan modifications, other real estate owned and personal property repossessions. The information reviewed in this meeting acts as a precursor for developing management’s analysis of the adequacy of the Allowance for Credit Losses on Loans and Leases.
For residential real estate and consumer loans, Horizon uses a grading system based on delinquency. Loans that are 90 days or more past due, on non–accrual, or are classified as modified loans are graded “Substandard.” After being 90 to 120 days delinquent a loan is charged off unless it is well secured and in the process of collection. If the latter case exists, the loan is placed on non–accrual. Occasionally a mortgage loan may be graded as “Special Mention.” When this situation arises, it is because the characteristics of the loan and the borrower fit the definition of a Risk Grade 5 described below, which is normally used for grading commercial loans. Loans not graded Substandard are considered Pass.
Horizon Bank employs a nine–grade rating system to determine the credit quality of commercial loans. The first five grades represent acceptable quality, and the last four grades mirror the criticized and classified grades used by the bank regulatory agencies (special mention, substandard, doubtful, and loss). The loan grade definitions are detailed below.
Risk Grade 1: Excellent (Pass)
Loans secured by liquid collateral, such as certificates of deposit, reputable bank letters of credit, or other cash equivalents or loans to any publicly held company with a current long–term debt rating of A or better and meeting defined key financial metric ranges.
Risk Grade 2: Good (Pass)
Loans to businesses that have strong financial statements containing an unqualified opinion from a CPA firm and at least three years consecutive years of profits; loans supported by unaudited financial statements containing strong balance sheets, five consecutive years of profits, a five year satisfactory relationship with the Bank, and key balance sheet and income statement trends that are either stable or positive; loans secured by publicly traded marketable securities with required margins where there is no impediment to liquidation; loans to individuals backed by liquid personal assets and unblemished credit histories; or loans to publicly held companies with current long–term debt ratings of Baa or better and meeting defined key financial metric ranges.
Risk Grade 3: Satisfactory (Pass)
Loans supported by financial statements (audited or unaudited) that indicate average or slightly below average risk and having some deficiency or vulnerability to changing economic conditions; loans with some weakness but offsetting features of other support are readily available; loans that are meeting the terms of repayment, but which may be susceptible to deterioration if adverse factors are encountered and meeting defined key financial metric ranges. Loans may be graded Satisfactory when there is no recent information on which to base a current risk evaluation and the following conditions apply:
•At inception, the loan was properly underwritten, did not possess an unwarranted level of credit risk, and the loan met the above criteria for a risk grade of Excellent, Good, or Satisfactory;
•At inception, the loan was secured with collateral possessing a loan value adequate to protect the Bank from loss.
•The loan has exhibited two or more years of satisfactory repayment with a reasonable reduction of the principal balance.
•During the period that the loan has been outstanding, there has been no evidence of any credit weakness. Some examples of weakness include slow payment, lack of cooperation by the borrower, breach of loan
covenants, or the borrower is in an industry known to be experiencing problems. If any of these credit weaknesses is observed, a lower risk grade may be warranted.
Risk Grade 4: Satisfactory/Monitored (Pass)
Loans in this category are considered to be of acceptable credit quality, but contain greater credit risk than Satisfactory rated loans and meet defined key financial metric ranges. Borrower displays acceptable liquidity, leverage, and earnings performance within the Bank’s minimum underwriting guidelines. The level of risk is acceptable but conditioned on the proper level of loan officer supervision. Loans that normally fall into this grade include acquisition, construction and development loans and income producing properties that have not reached stabilization.
Risk Grade 4W: Management Watch (Pass)
Loans in this category are considered to be of acceptable quality and meet defined key financial metric ranges, but with above normal risk. Borrower displays potential indicators of weakness in the primary source of repayment resulting in a higher reliance on secondary sources of repayment. Balance sheet may exhibit weak liquidity and/or high leverage. There is inconsistent earnings performance without the ability to sustain adverse economic conditions. Borrower may be operating in a declining industry or the property type, as for a commercial real estate loan, may be high risk or in decline. These loans require an increased level of loan officer supervision and monitoring to assure that any deterioration is addressed in a timely fashion. Commercial construction loans are graded as 4W Management Watch until the projects are completed and stabilized.
Risk Grade 5: Special Mention
Loans which possess some temporary (normally less than one year) credit deficiency or potential weakness which deserves close attention. Such loans pose an unwarranted financial risk that, if not corrected, could weaken the loan by adversely impacting the future repayment ability of the borrower. The key distinctions of a Special Mention classification are that (1) it is indicative of an unwarranted level of risk and (2) weaknesses are considered “potential,” not “defined,” impairments to the primary source of repayment. These loans may be to borrowers with adverse trends in financial performance, collateral value and/or marketability, or balance sheet strength and must meet defined key financial metric ranges.
Risk Grade 6: Substandard
One or more of the following characteristics may be exhibited in loans classified Substandard:
•Loans which possess a defined credit weakness. The likelihood that a loan will be paid from the primary source of repayment is uncertain. Financial deterioration is under way and very close attention is warranted to ensure that the loan is collected without loss.
•Loans are inadequately protected by the current net worth and paying capacity of the obligor.
•The primary source of repayment is gone, and the Bank is forced to rely on a secondary source of repayment, such as collateral liquidation or guarantees.
•Loans have a distinct possibility that the Bank will sustain some loss if deficiencies are not corrected.
•Unusual courses of action are needed to maintain a high probability of repayment.
•The borrower is not generating enough cash flow to repay loan principal; however, it continues to make interest payments.
•The lender is forced into a subordinated or unsecured position due to flaws in documentation.
•Loans have been restructured so that payment schedules, terms, and collateral represent concessions to the borrower when compared to the normal loan terms.
•The lender is seriously contemplating foreclosure or legal action due to the apparent deterioration in the loan.
•There is a significant deterioration in market conditions to which the borrower is highly vulnerable.
•The borrower meets defined key financial metric ranges.
Risk Grade 7: Doubtful
One or more of the following characteristics may be present in loans classified Doubtful:
•Loans have all of the weaknesses of those classified as Substandard. However, based on existing conditions, these weaknesses make full collection of principal highly improbable.
•The primary source of repayment is gone, and there is considerable doubt as to the quality of the secondary source of repayment.
•The possibility of loss is high but because of certain important pending factors which may strengthen the loan, loss classification is deferred until the exact status of repayment is known.
•The borrower meets defined key financial metric ranges.
Risk Grade 8: Loss
Loans are considered uncollectible and of such little value that continuing to carry them as assets is not feasible. Loans will be classified Loss when it is neither practical nor desirable to defer writing off or reserving all or a portion of a basically worthless asset, even though partial recovery may be possible at some time in the future.
The following tables present loans by credit grades and origination year at March 31, 2024.
March 31, 202420242023202220212020PriorRevolving Term LoansRevolving LoansTotal
Commercial
Owner occupied real estate
Pass$11,916 $70,435 $104,472 $77,316 $43,036 $206,256 $93,911 $9,176 $616,518 
Special Mention— 2,143 487 3,738 — 11,756 — 452 18,576 
Substandard— 1,453 — 6,443 966 8,698 490 — 18,050 
Doubtful— — — — — — — — — 
Total owner occupied real estate$11,916 $74,031 $104,959 $87,497 $44,002 $226,710 $94,401 $9,628 $653,144 
Gross charge–offs during period$— $— $— $— $— $1 $— $— $1 
Non–owner occupied real estate
Pass$9,444 $116,007 $192,469 $134,643 $103,726 $374,887 $282,938 $9,170 $1,223,284 
Special Mention— 1,359 18,768 1,313 — 38,012 — — 59,452 
Substandard— — — — 169 4,569 — — 4,738 
Doubtful— — — — — — — — — 
Total non–owner occupied real estate$9,444 $117,366 $211,237 $135,956 $103,895 $417,468 $282,938 $9,170 $1,287,474 
Gross charge–offs during period$— $— $— $— $— $— $— $— $— 
Residential spec homes
Pass$— $— $— $498 $— $— $3,487 $6,907 $10,892 
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Total residential spec homes$— $— $— $498 $— $— $3,487 $6,907 $10,892 
Gross charge–offs during period$— $— $— $— $— $— $— $— $— 
Development & spec land
Pass$— $4,269 $882 $505 $375 $2,065 $21,532 $170 $29,798 
Special Mention— — — — — 322 1,624 — 1,946 
Substandard— 748 — — — 102 619 — 1,469 
Doubtful— — — — — — — — — 
Total development & spec land$— $5,017 $882 $505 $375 $2,489 $23,775 $170 $33,213 
Gross charge–offs during period$— $— $— $— $— $— $— $— $— 
Commercial & industrial
Pass$69,125 $116,433 $147,219 $87,982 $11,219 $76,964 $61,372 $155,096 $725,410 
Special Mention490 1,472 620 8 1,377 1,341 11,144 13,637 30,089 
Substandard— 1,690 625 415 204 3,134 775 2,701 9,544 
Doubtful— — — — — — — — — 
Total commercial & industrial$69,615 $119,595 $148,464 $88,405 $12,800 $81,439 $73,291 $171,434 $765,043 
Gross charge–offs during period$— $— $— $— $— $— $— $— $— 
March 31, 202420242023202220212020PriorRevolving Term LoansRevolving LoansTotal
Real estate
Residential mortgage
Performing$16,245 $127,785 $167,014 $154,308 $82,838 $200,845 $— $— $749,035 
Non–performing— 366 1,897 1,063 257 5,142 — — 8,725 
Total residential mortgage$16,245 $128,151 $168,911 $155,371 $83,095 $205,987 $— $— $757,760 
Gross charge–offs during period$— $— $— $— $— $1 $— $— $1 
Residential construction
Performing$— $— $— $— $— $— $24,311 $— $24,311 
Non–performing— — — — — — — — — 
Total residential construction$— $— $— $— $— $— $24,311 $— $24,311 
Gross charge–offs during period$— $— $— $— $— $— $— $— $— 
Mortgage warehouse
Performing$— $— $— $— $— $— $— $56,548 $56,548 
Non–performing— — — — — — — — — 
Total mortgage warehouse$— $— $— $— $— $— $— $56,548 $56,548 
Gross charge–offs during period$— $— $— $— $— $— $— $— $— 
March 31, 202420242023202220212020PriorRevolving Term LoansRevolving LoansTotal
Consumer
Installment
Performing$3,533 $71,835 $12,263 $7,167 $3,845 $8,532 $16 $2,041 $109,232 
Non–performing— 8 44 55 — 31 — — 138 
Total installment$3,533 $71,843 $12,307 $7,222 $3,845 $8,563 $16 $2,041 $109,370 
Gross charge–offs during period$— $18 $124 $1 $17 $21 $— $— $181 
Indirect auto
Performing$643 $60,833 $176,167 $72,595 $30,750 $18,839 $— $— $359,827 
Non–performing— 74 366 227 196 145 — — 1,008 
Total indirect auto$643 $60,907 $176,533 $72,822 $30,946 $18,984 $— $— $360,835 
Gross charge–offs during period$— $43 $222 $81 $77 $42 $— $— $465 
Home equity
Performing$2,300 $25,932 $20,432 $2,922 $2,314 $12,729 $17,051 $472,108 $555,788 
Non–performing— — 309 — 52 389 3,047 — 3,797 
Total home equity$2,300 $25,932 $20,741 $2,922 $2,366 $13,118 $20,098 $472,108 $559,585 
Gross charge–offs during period$— $52 $88 $— $37 $— $— $— $177 
The following tables present loans by credit grades and origination year at December 31, 2023.
December 31, 202320232022202120202019PriorRevolving Term LoansRevolving LoansTotal
Commercial
Owner occupied real estate
Pass$66,814 $101,620 $73,199 $44,067 $41,726 $173,913 $93,432 $8,226 $602,997 
Special Mention3,920 490 3,777 — 2,038 8,128 — 452 18,805 
Substandard1,376 — 6,490 966 228 9,339 530 — 18,929 
Doubtful— — — — — — — — — 
Total owner occupied real estate$72,110 $102,110 $83,466 $45,033 $43,992 $191,380 $93,962 $8,678 $640,731 
Gross charge-offs during period$— $— $— $— $— $3 $401 $— $404 
Non–owner occupied real estate
Pass$116,031 $197,702 $149,540 $104,591 $83,394 $303,191 $246,569 $9,878 $1,210,896 
Special Mention1,366 16,135 1,334 254 845 36,590 — — 56,524 
Substandard— — — 185 — 6,233 — — 6,418 
Doubtful— — — — — — — — — 
Total non–owner occupied real estate$117,397 $213,837 $150,874 $105,030 $84,239 $346,014 $246,569 $9,878 $1,273,838 
Gross charge-offs during period$— $— $— $— $— $9 $— $— $9 
Residential spec homes
Pass$— $— $498 $— $— $— $5,852 $7,139 $13,489 
Special Mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Total residential spec homes$— $— $498 $— $— $— $5,852 $7,139 $13,489 
Gross charge-offs during period$— $— $— $— $— $— $29 $— $29 
Development & spec land
Pass$5,133 $1,477 $990 $390 $247 $3,146 $20,236 $170 $31,789 
Special Mention— — — — — — 1,529 — 1,529 
Substandard— — — — — 104 617 — 721 
Doubtful— — — — — — — — — 
Total development & spec land$5,133 $1,477 $990 $390 $247 $3,250 $22,382 $170 $34,039 
Gross charge-offs during period$— $— $— $— $— $— $— $— $— 
Commercial & industrial
Pass$121,969 $151,847 $93,709 $12,154 $20,497 $59,041 $60,539 $147,773 $667,529 
Special Mention1,434 726 265 2,137 119 1,305 9,375 18,836 34,197 
Substandard1,595 703 223 211 768 2,404 2,863 2,370 11,137 
Doubtful— — — — — — — — — 
Total commercial & industrial$124,998 $153,276 $94,197 $14,502 $21,384 $62,750 $72,777 $168,979 $712,863 
Gross charge-offs during period$— $33 $— $123 $25 $72 $344 $— $597 
December 31, 202320232022202120202019PriorRevolving Term LoansRevolving LoansTotal
Real estate
Residential mortgage
Performing$40,920 $154,803 $157,480 $85,159 $30,464 $177,411 $— $— $646,237 
Non–performing118 1,591 748 259 647 4,695 — — 8,058 
Total residential mortgage$41,038 $156,394 $158,228 $85,418 $31,111 $182,106 $— $— $654,295 
Gross charge-offs during period$— $28 $— $— $— $20 $— $— $48 
Residential construction
Performing$— $— $— $— $— $— $26,841 $— $26,841 
Non–performing— — — — — — — — — 
Total residential construction$— $— $— $— $— $— $26,841 $— $26,841 
Gross charge-offs during period$— $— $— $— $— $— $— $— $— 
Mortgage warehouse
Performing$— $— $— $— $— $— $— $45,078 $45,078 
Non–performing— — — — — — — — — 
Total mortgage warehouse$— $— $— $— $— $— $— $45,078 $45,078 
Gross charge-offs during period$— $— $— $— $— $— $— $— $— 
December 31, 202320232022202120202019PriorRevolving Term LoansRevolving LoansTotal
Consumer
Installment
Performing$14,835 $13,447 $7,859 $4,246 $4,449 $5,074 $6 $2,362 $52,278 
Non–performing— 44 10 — 27 7 — — 88 
Total installment$14,835 $13,491 $7,869 $4,246 $4,476 $5,081 $6 $2,362 $52,366 
Gross charge-offs during period$33 $28 $31 $10 $32 $27 $6 $— $167 
Indirect auto
Performing$65,260 $191,871 $80,773 $35,995 $16,690 $8,159 $— $— $398,748 
Non–performing49 424 312 229 124 60 — — 1,198 
Total indirect auto$65,309 $192,295 $81,085 $36,224 $16,814 $8,219 $— $— $399,946 
Gross charge-offs during period$86 $1,388 $708 $137 $58 $74 $— $— $2,451 
Home equity
Performing$26,376 $21,379 $5,121 $2,447 $3,885 $9,987 $12,713 $478,673 $560,581 
Non–performing— 212 — 54 177 260 2,860 — 3,563 
Total home equity$26,376 $21,591 $5,121 $2,501 $4,062 $10,247 $15,573 $478,673 $564,144 
Gross charge-offs during period$— $10 $— $103 $— $91 $13 $— $217