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Loans
 3 Months Ended
Mar. 31, 2024
Receivables [Abstract]  
Loans Loans
Loans held for investment are categorized into the following segments:
•Construction and land development: Loans are extended to both commercial and consumer customers which are collateralized by and for the purpose of funding land development and construction projects, including 1-4 family residential, multi-family, and non-farm residential property where the primary source of repayment is from proceeds of the sale, refinancing or permanent financing of the property.
•Commercial real estate - owner occupied: Loans are extended to commercial customers for the purpose of acquiring or refinancing real estate to be occupied by the borrower’s business. These loans are collateralized by the subject property and the repayment of these loans is largely dependent on the performance of the company occupying the property.
•Commercial real estate - non-owner occupied: Loans are extended to commercial customers for the purpose of acquiring or refinancing commercial property where occupancy by the borrower is not their primary intent. These loans are viewed primarily as cash flow loans, collateralized by the subject property, and the repayment of these loans is largely dependent on rental income from third parties or from the sale of the property.
•Residential real estate: Loans are extended to consumer customers and collateralized primarily by 1-4 family residential properties and include fixed and variable rate mortgages, home equity mortgages, and home equity lines of credit. Loans are primarily written based on conventional loan agency guidelines, including loans that exceed agency value limitations. Sources of repayment are largely dependent on the occupant of the residential property.
•Commercial and financial: Loans are extended to commercial customers. The purpose of the loans can be working capital, physical asset expansion, asset acquisition, or other business purposes. Loans may be collateralized by assets owned by the borrower or the borrower’s business. Commercial loans are based primarily on the historical and projected cash flow of the borrower’s business and secondarily on the capacity of credit enhancements, guarantees, and underlying collateral provided by the borrower.
•Consumer: Loans are extended to consumer customers. The segment includes both installment loans and lines of credit which may be collateralized or non-collateralized.
The following tables present net loan balances by segment for portfolio loans, purchased credit deteriorated loans (“PCD”) and loans purchased which are not considered credit deteriorated (“Non-PCD”) as of:

 March 31, 2024
(In thousands)Portfolio LoansAcquired Non-PCD LoansPCD LoansTotal
Construction and land development$454,591 $168,116 $539 $623,246 
Commercial real estate - owner occupied1,088,086 532,259 35,785 1,656,130 
Commercial real estate - non-owner occupied1,934,419 1,293,008 140,912 3,368,339 
Residential real estate1,756,236 745,349 19,814 2,521,399 
Commercial and financial1,216,045 305,200 44,954 1,566,199 
Consumer164,387 77,677 675 242,739 
Totals$6,613,764 $3,121,609 $242,679 $9,978,052 
 December 31, 2023
(In thousands)Portfolio LoansAcquired Non-PCD LoansPCD LoansTotal
Construction and land development$519,426 $247,654 $542 $767,622 
Commercial real estate - owner occupied1,079,633 552,627 38,021 1,670,281 
Commercial real estate - non-owner occupied1,844,588 1,323,222 152,080 3,319,890 
Residential real estate1,714,748 710,129 20,815 2,445,692 
Commercial and financial1,237,090 318,683 52,115 1,607,888 
Consumer175,969 74,854 744 251,567 
Totals$6,571,454 $3,227,169 $264,317 $10,062,940 
The amortized cost basis of loans at March 31, 2024 included net deferred costs of $44.9 million. At December 31, 2023, the amortized cost basis included net deferred costs of $43.1 million. At March 31, 2024, the remaining fair value adjustments on acquired loans were $163.4 million, or 4.6% of the outstanding acquired loan balances, compared to $174.0 million, or 4.8% of the acquired loan balances at December 31, 2023. The discount is accreted into interest income over the remaining lives of the related loans on a level yield basis.
Accrued interest receivable is included within Other Assets and was $39.5 million and $39.4 million at March 31, 2024 and December 31, 2023, respectively.
The following tables present the status of net loan balances as of March 31, 2024 and December 31, 2023.
 March 31, 2024
(In thousands)CurrentAccruing
30-59 Days
Past Due		Accruing
60-89 Days
Past Due		Accruing
Greater
Than
90 Days		NonaccrualTotal
Portfolio Loans      
Construction and land development$454,468 $85 $— $— $38 $454,591 
Commercial real estate - owner occupied1,083,721 512 520 — 3,333 1,088,086 
Commercial real estate - non-owner occupied1,931,093 — — — 3,326 1,934,419 
Residential real estate1,741,619 5,314 1,433 416 7,454 1,756,236 
Commercial and financial1,199,204 4,026 686 35 12,094 1,216,045 
Consumer163,006 771 173 45 392 164,387 
Total Portfolio Loans$6,573,111 $10,708 $2,812 $496 $26,637 $6,613,764 
Acquired Non-PCD Loans
Construction and land development$166,889 $471 $— $— $756 $168,116 
Commercial real estate - owner occupied528,431 488 821 — 2,519 532,259 
Commercial real estate - non-owner occupied1,274,008 4,867 — — 14,133 1,293,008 
Residential real estate739,085 2,227 649 168 3,220 745,349 
Commercial and financial300,642 64 — 35 4,459 305,200 
Consumer73,885 1,030 508 1,258 996 77,677 
 Total Acquired Non-PCD Loans$3,082,940 $9,147 $1,978 $1,461 $26,083 $3,121,609 
PCD Loans
Construction and land development$441 $— $— $— $98 $539 
Commercial real estate - owner occupied29,431 984 — — 5,370 35,785 
Commercial real estate - non-owner occupied137,184 — — — 3,728 140,912 
Residential real estate17,891 254 618 — 1,051 19,814 
Commercial and financial29,723 990 — 3 14,238 44,954 
Consumer623 5 47 — — 675 
Total PCD Loans$215,293 $2,233 $665 $3 $24,485 $242,679 
Total Loans$9,871,344 $22,088 $5,455 $1,960 $77,205 $9,978,052 
 
 December 31, 2023
(In thousands)CurrentAccruing
30-59 Days
Past Due		Accruing
60-89 Days
Past Due		Accruing
Greater
Than
90 Days		NonaccrualTotal
Portfolio Loans      
Construction and land development$519,383 $19 $— $— $24 $519,426 
Commercial real estate - owner occupied1,078,732 — — — 901 1,079,633 
Commercial real estate - non-owner occupied1,840,485 685 — — 3,418 1,844,588 
Residential real estate1,701,862 4,373 1,515 169 6,829 1,714,748 
Commercial and financial1,221,941 1,372 145 50 13,582 1,237,090 
Consumer174,798 763 290 — 118 175,969 
 Total Portfolio Loans$6,537,201 $7,212 $1,950 $219 $24,872 $6,571,454 
Acquired Non-PCD Loans
Construction and land development$245,674 $891 $289 $— $800 $247,654 
Commercial real estate - owner occupied545,374 1,691 133 — 5,429 552,627 
Commercial real estate - non-owner occupied1,310,100 11,577 — — 1,545 1,323,222 
Residential real estate704,417 2,586 888 153 2,085 710,129 
Commercial and financial315,229 50 36 35 3,333 318,683 
Consumer71,986 568 618 618 1,064 74,854 
 Total Acquired Non-PCD Loans$3,192,780 $17,363 $1,964 $806 $14,256 $3,227,169 
PCD Loans
Construction and land development$442 $100 $— $— $— $542 
Commercial real estate - owner occupied34,667 — — — 3,354 38,021 
Commercial real estate - non-owner occupied148,308 — — — 3,772 152,080 
Residential real estate18,923 497 169 154 1,072 20,815 
Commercial and financial34,337 — — — 17,778 52,115 
Consumer651 85 8 — — 744 
 Total PCD Loans$237,328 $682 $177 $154 $25,976 $264,317 
Total Loans$9,967,309 $25,257 $4,091 $1,179 $65,104 $10,062,940 
All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest subsequently received on such loans is accounted for under the cost-recovery method, whereby interest income is not recognized until the loan balance is reduced to zero. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current, and future payments are reasonably assured. The Company recognized $0.2 million in interest income on nonaccrual loans during the three months ended March 31, 2024. The Company recognized $0.1 million in interest income on nonaccrual loans during the three months ended March 31, 2023.
The following tables present net balances of loans on nonaccrual status and the related allowance for credit losses, if any, as of:
March 31, 2024
(In thousands)Nonaccrual Loans With No Related AllowanceNonaccrual Loans With an AllowanceTotal Nonaccrual LoansAllowance for Credit Losses
Construction and land development$99 $793 $892 $222 
Commercial real estate - owner occupied8,536 2,686 11,222 508 
Commercial real estate - non-owner occupied17,715 3,472 21,187 1,617 
Residential real estate2,370 9,355 11,725 313 
Commercial and financial5,918 24,873 30,791 13,760 
Consumer— 1,388 1,388 209 
Totals $34,638 $42,567 $77,205 $16,629 
December 31, 2023
(In thousands)Nonaccrual Loans With No Related AllowanceNonaccrual Loans With an AllowanceTotal Nonaccrual LoansAllowance for Credit Losses
Construction and land development$— $824 $824 $— 
Commercial real estate - owner occupied4,859 4,825 9,684 41 
Commercial real estate - non-owner occupied3,938 4,797 8,735 230 
Residential real estate1,792 8,194 9,986 58 
Commercial and financial4,868 29,825 34,693 2,319 
Consumer— 1,182 1,182 257 
Totals$15,457 $49,647 $65,104 $2,905 

Loans by Risk Rating
The Company utilizes an internal asset classification system as a means of identifying problem and potential problem loans. The following classifications are used to categorize loans under the internal classification system:
•Pass: Loans that are not problem loans or potential problem loans are considered to be pass-rated.
•Special Mention: Loans that do not currently expose the Company to sufficient risk to warrant classification in the Substandard or Doubtful categories, but possess weaknesses that deserve management’s close attention are deemed to be Special Mention.
•Substandard: Loans with the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.
•Doubtful: Loans that have all the weaknesses inherent in those classified Substandard with the added characteristic that the weakness present makes collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.
The following tables present the risk rating of loans and year-to-date gross charge offs by year of origination as of:
March 31, 2024
(In thousands)20242023202220212020PriorRevolvingTotal
Construction and Land Development
Risk Ratings:
Pass$13,176 $89,480 $241,691 $77,568 $9,467 $40,599 $149,619 $621,600 
Special Mention— — — — — 395 360 755 
Substandard— — 212 — — 580 99 891 
Doubtful— — — — — — — — 
Total$13,176 $89,480 $241,903 $77,568 $9,467 $41,574 $150,078 $623,246 
Gross Charge Offs$— $— $— $— $— $— $— $— 
Commercial real estate - owner occupied
Risk Ratings:
Pass$21,932 $142,467 $273,030 $277,164 $166,881 $696,218 $31,147 $1,608,839 
Special Mention2,064 — 368 1,320 — 9,502 — 13,254 
Substandard— — 6,431 1,224 6,922 19,460 — 34,037 
Doubtful— — — — — — — — 
Total$23,996 $142,467 $279,829 $279,708 $173,803 $725,180 $31,147 $1,656,130 
Gross Charge Offs$— $— $— $— $— $— $— $— 
Commercial real estate - non-owner occupied
Risk Ratings:
Pass$61,739 $235,785 $814,204 $671,176 $287,896 $1,179,616 $23,637 $3,274,053 
Special Mention— — 29,348 6,418 2,952 10,352 — 49,070 
Substandard— — — 8,606 9,264 27,096 250 45,216 
Doubtful— — — — — — — — 
Total$61,739 $235,785 $843,552 $686,200 $300,112 $1,217,064 $23,887 $3,368,339 
Gross Charge Offs$— $— $— $— $84 $— $— $84 
Residential real estate
Risk Ratings:
Pass$35,352 $176,395 $472,223 $647,547 $157,927 $497,194 $513,044 $2,499,682 
Special Mention— 112 — 721 39 1,134 4,052 6,058 
Substandard— 259 112 91 152 9,362 5,683 15,659 
Doubtful— — — — — — — — 
Total$35,352 $176,766 $472,335 $648,359 $158,118 $507,690 $522,779 $2,521,399 
Gross Charge Offs$— $— $— $— $— $— $— $— 
Commercial and financial
Risk Ratings:
Pass$49,338 $233,844 $312,888 $322,298 $120,778 $141,193 $318,118 $1,498,457 
Special Mention— 1,082 1,206 935 985 1,468 1,742 7,418 
Substandard— — 19,090 20,920 1,354 14,886 4,074 60,324 
Doubtful— — — — — — — — 
Total$49,338 $234,926 $333,184 $344,153 $123,117 $157,547 $323,934 $1,566,199 
Gross Charge Offs$— $— $85 $266 $— $2,031 $274 $2,656 
Consumer
Risk Ratings:
Pass$4,354 $17,757 $49,663 $39,083 $18,337 $45,641 $61,400 $236,235 
Special Mention— — 235 217 60 95 88 695 
Substandard— 70 3,315 1,780 161 392 91 5,809 
Doubtful— — — — — — — — 
Total$4,354 $17,827 $53,213 $41,080 $18,558 $46,128 $61,579 $242,739 
Gross Charge Offs$— $215 $74 $1,493 $55 $36 $15 $1,888 
Consolidated
Total$187,955 $897,251 $2,224,016 $2,077,068 $783,175 $2,695,183 $1,113,404 $9,978,052 
Gross Charge Offs$— $215 $159 $1,759 $139 $2,067 $289 $4,628 
December 31, 2023
(In thousands)20232022202120202019PriorRevolvingTotal
Construction and Land Development
Risk Ratings:
Pass$80,750 $295,043 $107,158 $20,199 $21,942 $28,902 $210,716 $764,710 
Special Mention— 1,407 — — — 393 289 2,089 
Substandard— — — — — 499 324 823 
Doubtful— — — — — — — — 
Total$80,750 $296,450 $107,158 $20,199 $21,942 $29,794 $211,329 $767,622 
Gross Charge Offs$— $— $— $— $— $— $— $— 
Commercial real estate - owner occupied
Risk Ratings:
Pass$145,642 $272,384 $281,870 $165,475 $171,897 $551,177 $36,952 $1,625,397 
Special Mention— 159 1,335 — 524 9,122 1 11,141 
Substandard— 6,024 1,057 6,991 7,116 12,491 64 33,743 
Doubtful— — — — — — — — 
Total$145,642 $278,567 $284,262 $172,466 $179,537 $572,790 $37,017 $1,670,281 
Gross Charge Offs$— $— $— $— $— $— $— $— 
Commercial real estate - non-owner occupied
Risk Ratings:
Pass$234,226 $784,525 $657,499 $288,747 $397,031 $841,062 $25,954 $3,229,044 
Special Mention— 29,381 2,092 2,964 — 12,120 — 46,557 
Substandard— 685 8,723 9,398 10,427 14,806 250 44,289 
Doubtful— — — — — — — — 
Total$234,226 $814,591 $668,314 $301,109 $407,458 $867,988 $26,204 $3,319,890 
Gross Charge Offs$— $— $11 $— $— $— $109 $120 
Residential real estate
Risk Ratings:
Pass$177,000 $450,366 $649,086 $160,889 $95,288 $413,719 $479,047 $2,425,395 
Special Mention208 — — — 58 482 4,004 4,752 
Substandard95 — 919 123 314 8,960 5,134 15,545 
Doubtful— — — — — — — — 
Total$177,303 $450,366 $650,005 $161,012 $95,660 $423,161 $488,185 $2,445,692 
Gross Charge Offs$— $— $— $44 $— $159 $153 $356 
Commercial and financial
Risk Ratings:
Pass$315,560 $336,071 $333,113 $127,069 $66,165 $89,002 $269,108 $1,536,088 
Special Mention136 2,167 1,064 1,005 503 1,103 2,191 8,169 
Substandard— 18,558 21,643 1,380 5,889 11,842 3,961 63,273 
Doubtful— — — — — 358 — 358 
Total$315,696 $356,796 $355,820 $129,454 $72,557 $102,305 $275,260 $1,607,888 
Gross Charge Offs$1,198 $117 $659 $3,007 $582 $12,584 $418 $18,565 
Consumer
Risk Ratings:
Pass$20,557 $66,699 $45,534 $19,747 $20,300 $19,080 $56,473 $248,390 
Special Mention5 334 279 77 5 194 65 959 
Substandard66 930 891 103 51 177 — 2,218 
Doubtful— — — — — — — — 
Total$20,628 $67,963 $46,704 $19,927 $20,356 $19,451 $56,538 $251,567 
Gross Charge Offs$74 $1,910 $2,218 $362 $263 $666 $261 $5,754 
Consolidated
Total$974,245 $2,264,733 $2,112,263 $804,167 $797,510 $2,015,489 $1,094,533 $10,062,940 
Gross Charge Offs$1,272 $2,027 $2,888 $3,413 $845 $13,409 $941 $24,795 
Troubled Borrower Modifications
The following table presents the amortized cost of troubled borrower modification (“TBM”) loans that were modified during the three months ended March 31, 2024. There was one loan for $29 thousand modified as a TBM for the three months ended March 31, 2023.
March 31, 2024
(In thousands)
Rate Reduction or Rate Reduction with Term Extension
Term Extension and/or Payment Delay
Total1
% of Total Class of Loans
Commercial real estate - owner occupied$3,324 $— $3,324 0.20 %
Commercial real estate - non-owner occupied810 — 810 0.02 %
Residential real estate— 31 31 — %
Commercial and financial2,631 57 2,688 0.17 %
Consumer— 523 523 0.22 %
Totals$6,765 $611 $7,376 0.07 %
1At March 31, 2024, there were no unfunded lending related commitments associated with TBMs.
The following table presents the payment status of TBM loans that were modified in the twelve months prior to March 31, 2024.
March 31, 2024
(In thousands)CurrentAccruing
30-59 Days Past Due		Accruing
60-89 Days Past Due		Accruing
Greater
Than 90 Days		NonaccrualTotal
Commercial real estate - owner occupied522 — — — 2,802 3,324 
Commercial real estate - non-owner occupied— — — — 810 810 
Residential real estate31 — — — — 31 
Commercial and financial2,185 — — — 13,016 15,201 
Consumer2,299 290 148 231 143 3,111 
Totals$5,037 $290 $148 $231 $16,771 $22,477 
During the three months ended March 31, 2024, there were no subsequent defaults of TBMs modified in the prior 12 months.