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Loans
 6 Months Ended
Jun. 30, 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:

 June 30, 2024
(In thousands)Portfolio LoansAcquired Non-PCD LoansPCD LoansTotal
Construction and land development$465,950 $127,049 $535 $593,534 
Commercial real estate - owner occupied1,103,074 518,502 34,815 1,656,391 
Commercial real estate - non-owner occupied2,023,683 1,262,412 137,171 3,423,266 
Residential real estate1,787,664 748,736 18,920 2,555,320 
Commercial and financial1,294,592 249,604 38,094 1,582,290 
Consumer159,096 68,229 382 227,707 
Totals$6,834,059 $2,974,532 $229,917 $10,038,508 
 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 included net deferred costs of $45.5 million at June 30, 2024 and $43.1 million at December 31, 2023. At June 30, 2024, the remaining fair value adjustments on acquired loans were $151.4 million, or 4.5% 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. During the three and six months ended June 30, 2024, $9.1 million in loans previously held for investment were sold, resulting in a net gain of $0.9 million.
Accrued interest receivable is included within Other Assets and was $40.1 million and $39.4 million at June 30, 2024 and December 31, 2023, respectively.
The following tables present the status of net loan balances as of June 30, 2024 and December 31, 2023.
 June 30, 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$465,162 $— $— $— $788 $465,950 
Commercial real estate - owner occupied1,097,060 2,167 1,013 — 2,834 1,103,074 
Commercial real estate - non-owner occupied2,018,188 — — — 5,495 2,023,683 
Residential real estate1,769,247 8,837 2,047 440 7,093 1,787,664 
Commercial and financial1,279,345 4,856 405 49 9,937 1,294,592 
Consumer156,197 2,096 275 33 495 159,096 
Total Portfolio Loans$6,785,199 $17,956 $3,740 $522 $26,642 $6,834,059 
Acquired Non-PCD Loans
Construction and land development$126,422 $— $— $— $627 $127,049 
Commercial real estate - owner occupied515,005 1,221 456 — 1,820 518,502 
Commercial real estate - non-owner occupied1,256,224 634 — 1,641 3,913 1,262,412 
Residential real estate740,817 3,085 367 — 4,467 748,736 
Commercial and financial245,824 247 40 35 3,458 249,604 
Consumer62,058 2,872 1,483 873 943 68,229 
 Total Acquired Non-PCD Loans$2,946,350 $8,059 $2,346 $2,549 $15,228 $2,974,532 
PCD Loans
Construction and land development$441 $— $— $— $94 $535 
Commercial real estate - owner occupied28,562 2,564 — — 3,689 34,815 
Commercial real estate - non-owner occupied133,627 880 — — 2,664 137,171 
Residential real estate16,785 654 293 8 1,180 18,920 
Commercial and financial27,702 — — — 10,392 38,094 
Consumer303 33 — 8 38 382 
Total PCD Loans$207,420 $4,131 $293 $16 $18,057 $229,917 
Total Loans$9,938,969 $30,146 $6,379 $3,087 $59,927 $10,038,508 
 
 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 paid down 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 $0.7 million and $0.3 million in interest income on nonaccrual loans during the three months ended June 30, 2024 and June 30, 2023, respectively. The Company recognized $0.9 million and $0.4 million in interest income on nonaccrual loans during the six months ended June 30, 2024 and June 30, 2023, respectively.
The following tables present net balances of loans on nonaccrual status and the related allowance for credit losses, if any, as of:
June 30, 2024
(In thousands)Nonaccrual Loans With No Related AllowanceNonaccrual Loans With an AllowanceTotal Nonaccrual LoansAllowance for Credit Losses
Construction and land development$— $1,509 $1,509 $302 
Commercial real estate - owner occupied3,299 5,044 8,343 832 
Commercial real estate - non-owner occupied8,834 3,238 12,072 1,507 
Residential real estate927 11,813 12,740 328 
Commercial and financial4,506 19,281 23,787 10,148 
Consumer— 1,476 1,476 233 
Totals $17,566 $42,361 $59,927 $13,350 
December 31, 2023
(In thousands)Nonaccrual Loans With No Related AllowanceNonaccrual Loans With an AllowanceTotal Nonaccrual LoansAllowance for Credit Losses
Construction and land development$— $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-date1 gross charge offs by year of origination as of:
June 30, 2024
(In thousands)20242023202220212020PriorRevolvingTotal
Construction and Land Development
Risk Ratings:
Pass$26,705 $107,013 $205,837 $69,649 $9,746 $39,959 $131,873 $590,782 
Special Mention— — 770 — — 78 — 848 
Substandard— — 195 750 — 959 — 1,904 
Doubtful— — — — — — — — 
Total$26,705 $107,013 $206,802 $70,399 $9,746 $40,996 $131,873 $593,534 
Gross Charge Offs$— $— $— $— $— $1 $— $1 
Commercial real estate - owner occupied
Risk Ratings:
Pass$64,345 $140,778 $280,676 $270,336 $161,759 $673,940 $19,251 $1,611,085 
Special Mention2,063 — 157 1,304 2,028 5,273 — 10,825 
Substandard— 1,073 5,104 1,223 6,883 20,198 — 34,481 
Doubtful— — — — — — — — 
Total$66,408 $141,851 $285,937 $272,863 $170,670 $699,411 $19,251 $1,656,391 
Gross Charge Offs$— $— $179 $— $— $123 $— $302 
Commercial real estate - non-owner occupied
Risk Ratings:
Pass$189,579 $234,744 $847,405 $636,745 $259,785 $1,116,502 $19,435 $3,304,195 
Special Mention— — 20,317 6,370 20,264 26,249 — 73,200 
Substandard— — 9,791 6,721 7,897 21,462 — 45,871 
Doubtful— — — — — — — — 
Total$189,579 $234,744 $877,513 $649,836 $287,946 $1,164,213 $19,435 $3,423,266 
Gross Charge Offs$— $— $— $— $90 $13 $— $103 
Residential real estate
Risk Ratings:
Pass$68,373 $174,105 $494,354 $650,808 $158,933 $471,713 $511,930 $2,530,216 
Special Mention— 418 — — — 553 9,083 10,054 
Substandard— 259 202 375 109 7,336 6,769 15,050 
Doubtful— — — — — — — — 
Total$68,373 $174,782 $494,556 $651,183 $159,042 $479,602 $527,782 $2,555,320 
Gross Charge Offs$— $— $— $— $40 $56 $26 $122 
Commercial and financial
Risk Ratings:
Pass$151,632 $230,663 $304,742 $270,710 $100,737 $138,586 $323,386 $1,520,456 
Special Mention— 1,053 1,117 3,173 569 1,204 2,400 9,516 
Substandard— — 4,171 12,124 6,417 12,693 5,548 40,953 
Doubtful— — 5,737 5,628 — — — 11,365 
Total$151,632 $231,716 $315,767 $291,635 $107,723 $152,483 $331,334 $1,582,290 
Gross Charge Offs$— $— $2,646 $5,092 $— $2,335 $533 $10,606 
Consumer
Risk Ratings:
Pass$7,343 $16,572 $44,213 $34,424 $15,967 $40,885 $62,330 $221,734 
Special Mention88 — 862 355 2 152 6 1,465 
Substandard— 238 2,606 1,227 80 357 — 4,508 
Doubtful— — — — — — — — 
Total$7,431 $16,810 $47,681 $36,006 $16,049 $41,394 $62,336 $227,707 
Gross Charge Offs$208 $220 $1,587 $2,555 $167 $56 $126 $4,919 
Consolidated
Total$510,128 $906,916 $2,228,256 $1,971,922 $751,176 $2,578,099 $1,092,011 $10,038,508 
Gross Charge Offs$208 $220 $4,412 $7,647 $297 $2,584 $685 $16,053 
1 Represents gross charge-offs for the six months ended June 30, 2024.
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 
1 Represents gross charge-offs for the year ended December 31, 2023.
Troubled Borrower Modifications
The following table presents the amortized cost of troubled borrower modification (“TBM”) loans that were modified during the six months ended June 30, 2024. There were five loans with an amortized cost of $0.9 million modified as a TBM during the six months ended June 30, 2023.
June 30, 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$3,257 $— $3,257 0.20 %
Commercial real estate - non-owner occupied794 3,203 3,997 0.12 %
Residential real estate— 130 130 0.01 %
Commercial and financial2,543 1,293 3,836 0.24 %
Consumer— 967 967 0.42 %
Totals$6,594 $5,593 $12,187 0.12 %
1At June 30, 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 June 30, 2024.
June 30, 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 occupied$98 $520 $— $— $2,738 $3,356 
Commercial real estate - non-owner occupied— — — — 3,997 3,997 
Residential real estate125 — — — 99 224 
Commercial and financial3,151 — — — 7,410 10,561 
Consumer907 640 304 207 165 2,223 
Totals$4,281 $1,160 $304 $207 $14,409 $20,361 
TBM loans modified in the prior 12 months with a payment default during the six months ending June 30, 2024 were immaterial.