Loans

12 Months Ended

Dec. 31, 2024

Receivables [Abstract]

Loans

Note 4 - 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 commercial, 1-4 family residential, multi-family, and non-farm residential properties 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 HELOCs. 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, PCD and loans purchased which are not considered credit deteriorated (“Non-PCD”) as of:

	December 31, 2024
(In thousands)	Portfolio Loans		Acquired Non-PCD Loans		PCD Loans		Total
Construction and land development	$	568,148	$	79,370	$	535	$	648,053
Commercial real estate - owner occupied	1,177,538		477,459		31,632		1,686,629
Commercial real estate - non-owner occupied	2,243,056		1,156,849		103,903		3,503,808
Residential real estate	1,882,955		719,589		14,241		2,616,785
Commercial and financial	1,424,689		199,146		27,519		1,651,354
Consumer	155,786		37,282		253		193,321
Totals	$	7,452,172	$	2,669,695	$	178,083	$	10,299,950

	December 31, 2023
(In thousands)	Portfolio Loans		Acquired Non-PCD Loans		PCD Loans		Total
Construction and land development	$	519,426	$	247,654	$	542	$	767,622
Commercial real estate - owner occupied	1,079,633		552,627		38,021		1,670,281
Commercial real estate - non-owner occupied	1,844,588		1,323,222		152,080		3,319,890
Residential real estate	1,714,748		710,129		20,815		2,445,692
Commercial and financial	1,237,090		318,683		52,115		1,607,888
Consumer	175,969		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 $43.9 million and $43.1 million at December 31, 2024 and December 31, 2023, respectively. At December 31, 2024, the remaining fair value adjustments on acquired loans were $128.1 million, or 4.3% 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 2024, $26.8 million in commercial real estate non-owner occupied loans previously held for investment were sold, resulting in a gain of $2.4 million and approximately $20.0 million in consumer loans were sold or transferred to held-for-sale.

Accrued interest receivable is included within Other Assets and was $38.1 million and $39.4 million at December 31, 2024 and 2023, respectively.

Loans to directors and executive officers totaled $1.4 million and $0.3 million at December 31, 2024 and 2023, respectively.

The following table presents the status of net loan balances as of December 31, 2024 and December 31, 2023.

	December 31, 2024
(In thousands)	Current		Accruing 30-59 Days Past Due		Accruing 60-89 Days Past Due		Accruing Greater Than 90 Days		Nonaccrual		Total
Portfolio Loans
Construction and land development	$	567,896	$	127	$	—	$	—	$	125	$	568,148
Commercial real estate - owner occupied	1,172,287		3,083		—		—		2,168		1,177,538
Commercial real estate - non-owner occupied	2,225,216		833		—		—		17,007		2,243,056
Residential real estate	1,866,295		5,466		450		—		10,744		1,882,955
Commercial and financial	1,411,623		1,075		106		—		11,885		1,424,689
Consumer	152,129		331		5		—		3,321		155,786
Total Portfolio Loans	$	7,395,446	$	10,915	$	561	$	—	$	45,250	$	7,452,172
Acquired Non-PCD Loans
Construction and land development	$	78,728	$	8	$	99	$	—	$	535	$	79,370
Commercial real estate - owner occupied	473,118		2,414		—		—		1,927		477,459
Commercial real estate - non-owner occupied	1,151,541		148		—		—		5,160		1,156,849
Residential real estate	706,566		1,064		131		—		11,828		719,589
Commercial and financial	195,853		—		—		35		3,258		199,146
Consumer	32,375		11		1		—		4,895		37,282
Total Acquired Non-PCD Loans	$	2,638,181	$	3,645	$	231	$	35	$	27,603	$	2,669,695
PCD Loans
Construction and land development	$	43	$	—	$	—	$	—	$	492	$	535
Commercial real estate - owner occupied	26,987		—		—		—		4,645		31,632
Commercial real estate - non-owner occupied	96,188		—		—		—		7,715		103,903
Residential real estate	12,752		—		—		167		1,322		14,241
Commercial and financial	22,153		—		—		—		5,366		27,519
Consumer	200		—		—		—		53		253
Total PCD Loans	$	158,323	$	—	$	—	$	167	$	19,593	$	178,083
Total Loans	$	10,191,950	$	14,560	$	792	$	202	$	92,446	$	10,299,950

	December 31, 2023
(In thousands)	Current		Accruing 30-59 Days Past Due		Accruing 60-89 Days Past Due		Accruing Greater Than 90 Days		Nonaccrual		Total
Portfolio Loans
Construction and land development	$	519,383	$	19	$	—	$	—	$	24	$	519,426
Commercial real estate - owner occupied	1,078,732		—		—		—		901		1,079,633
Commercial real estate - non-owner occupied	1,840,485		685		—		—		3,418		1,844,588
Residential real estate	1,701,862		4,373		1,515		169		6,829		1,714,748
Commercial and financial	1,221,941		1,372		145		50		13,582		1,237,090
Consumer	174,798		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 occupied	545,374		1,691		133		—		5,429		552,627
Commercial real estate - non-owner occupied	1,310,100		11,577		—		—		1,545		1,323,222
Residential real estate	704,417		2,586		888		153		2,085		710,129
Commercial and financial	315,229		50		36		35		3,333		318,683
Consumer	71,986		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 occupied	34,667		—		—		—		3,354		38,021
Commercial real estate - non-owner occupied	148,308		—		—		—		3,772		152,080
Residential real estate	18,923		497		169		154		1,072		20,815
Commercial and financial	34,337		—		—		—		17,778		52,115
Consumer	651		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 interest income of $1.3 million, $0.5 million, and $1.6 million on nonaccrual loans during the years ended December 31, 2024, 2023, and 2022, respectively.

The following tables present net balances of loans on nonaccrual status and the related allowance for credit losses, if any, as of:

	December 31, 2024
(In thousands)	Nonaccrual Loans With No Related Allowance		Nonaccrual Loans With an Allowance		Total Nonaccrual Loans
Construction and land development	$	492	$	660	$	1,152
Commercial real estate - owner occupied	2,622		6,118		8,740
Commercial real estate - non-owner occupied	29,449		433		29,882
Residential real estate	6,462		17,432		23,894
Commercial and financial	2,703		17,806		20,509
Consumer	2,416		5,853		8,269
Totals	$	44,144	$	48,302	$	92,446

	December 31, 2023
(In thousands)	Nonaccrual Loans With No Related Allowance		Nonaccrual Loans With an Allowance		Total Nonaccrual Loans
Construction and land development	$	—	$	824	$	824
Commercial real estate - owner occupied	4,859		4,825		9,684
Commercial real estate - non-owner occupied	3,938		4,797		8,735
Residential real estate	1,792		8,194		9,986
Commercial and financial	4,868		29,825		34,693
Consumer	—		1,182		1,182
Totals	$	15,457	$	49,647	$	65,104

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 gross charge-offs by year of origination as of: 

	December 31, 2024
(In thousands)	2024		2023		2022		2021		2020		Prior		Revolving		Total
Construction and Land Development
Risk Ratings:
Pass	$	113,993	$	160,801	$	161,122	$	39,276	$	8,547	$	36,342	$	126,659	$	646,740
Special Mention	—		—		—		—		—		75		—		75
Substandard	—		—		183		90		—		965		—		1,238
Doubtful	—		—		—		—		—		—		—		—
Total	$	113,993	$	160,801	$	161,305	$	39,366	$	8,547	$	37,382	$	126,659	$	648,053
Gross Charge-Offs	$	—	$	—	$	—	$	—	$	—	$	1	$	—	$	1
Commercial real estate - owner occupied
Risk Ratings:
Pass	$	184,312	$	139,197	$	260,266	$	257,711	$	153,702	$	628,391	$	20,674	$	1,644,253
Special Mention	—		—		4,975		2,344		2,418		7,965		1		17,703
Substandard	89		1,061		2,821		377		5,870		14,106		349		24,673
Doubtful	—		—		—		—		—		—		—		—
Total	$	184,401	$	140,258	$	268,062	$	260,432	$	161,990	$	650,462	$	21,024	$	1,686,629
Gross Charge-Offs	$	—	$	—	$	179	$	—	$	—	$	162	$	—	$	341
Commercial real estate - non-owner occupied
Risk Ratings:
Pass	$	495,361	$	236,306	$	820,739	$	581,892	$	237,777	$	1,012,209	$	24,752	$	3,409,036
Special Mention	27		—		4,773		1,269		5,265		25,245		—		36,579
Substandard	—		—		10,462		10,684		16,437		20,610		—		58,193
Doubtful	—		—		—		—		—		—		—		—
Total	$	495,388	$	236,306	$	835,974	$	593,845	$	259,479	$	1,058,064	$	24,752	$	3,503,808
Gross Charge-Offs	$	—	$	—	$	—	$	—	$	89	$	1,396	$	—	$	1,485
Residential real estate
Risk Ratings:
Pass	$	130,178	$	173,606	$	492,412	$	631,313	$	153,786	$	490,156	$	517,136	$	2,588,587
Special Mention	—		22		—		—		—		164		3,434		3,620
Substandard	693		1,019		5,068		1,212		105		7,041		9,440		24,578
Doubtful	—		—		—		—		—		—		—		—
Total	$	130,871	$	174,647	$	497,480	$	632,525	$	153,891	$	497,361	$	530,010	$	2,616,785
Gross Charge-Offs	$	—	$	—	$	—	$	—	$	40	$	62	$	32	$	134

	December 31, 2024
(In thousands)	2024		2023		2022		2021		2020		Prior		Revolving		Total
Commercial and financial
Risk Ratings:
Pass	$	373,569	$	180,423	$	253,120	$	232,427	$	82,964	$	117,276	$	362,701	$	1,602,480
Special Mention	—		382		755		2,839		232		1,904		2,163		8,275
Substandard	—		115		8,547		9,810		6,147		10,604		5,376		40,599
Doubtful	—		—		—		—		—		—		—		—
Total	$	373,569	$	180,920	$	262,422	$	245,076	$	89,343	$	129,784	$	370,240	$	1,651,354
Gross Charge-Offs	$	—	$	—	$	2,762	$	10,669	$	—	$	3,111	$	1,074	$	17,616
Consumer
Risk Ratings:
Pass	$	14,627	$	14,049	$	26,332	$	20,721	$	11,682	$	30,022	$	67,562	$	184,995
Special Mention	—		5		1		—		—		—		54		60
Substandard	75		25		4,953		40		2,435		737		1		8,266
Doubtful	—		—		—		—		—		—		—		—
Total	$	14,702	$	14,079	$	31,286	$	20,761	$	14,117	$	30,759	$	67,617	$	193,321
Gross Charge-Offs	$	789	$	457	$	5,471	$	4,828	$	255	$	221	$	267	$	12,288
Consolidated
Total	$	1,312,924	$	907,011	$	2,056,529	$	1,792,005	$	687,367	$	2,403,812	$	1,140,302	$	10,299,950
Gross Charge-Offs	$	789	$	457	$	8,412	$	15,497	$	384	$	4,953	$	1,373	$	31,865

	December 31, 2023
(In thousands)	2023		2022		2021		2020		2019		Prior		Revolving		Total
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	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

	December 31, 2023
(In thousands)	2023		2022		2021		2020		2019		Prior		Revolving		Total
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 Mention	208		—		—		—		58		482		4,004		4,752
Substandard	95		—		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 Mention	136		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 Mention	5		334		279		77		5		194		65		959
Substandard	66		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 tables present the amortized cost of TBM loans that were modified during the years ended December 31, 2024 and December 31, 2023.

	December 31, 2024
(In thousands)	Rate Reduction or Rate Reduction with Term Extension		Term Extension and/or Payment Delay		Total1		% of Total Class of Loans
Construction and land development	$	—	$	115	$	115	0.02	%
Commercial real estate - owner occupied	2,945		—		2,945		0.17
Commercial real estate - non-owner occupied	174		—		174		—
Residential real estate	112		360		472		0.02
Commercial and financial	2,450		1,820		4,270		0.26
Consumer2	—		71		71		0.04
Totals	$	5,681	$	2,366	$	8,047	0.08	%
1At December 31, 2024, there were no unfunded lending related commitments associated with TBMs. 2Excludes $0.8 million of consumer TBMs held for sale, with term extensions and/or payment delays.

	December 31, 2023
(In thousands)	Term Extension and/or Payment Delay1		% of Total Class of Loans
Residential real estate	$	818	0.03	%
Commercial and financial	12,711		0.79
Consumer	3,988		1.59
Totals	$	17,517	0.17	%
1At December 31, 2023, there were no unfunded lending related commitments associated with TBMs.

The following tables present the payment status of TBM loans that were modified in the twelve months prior to December 31, 2024 and in the twelve months prior to December 31, 2023.

	December 31, 2024
(In thousands)	Current		Accruing 30-59 Days Past Due		Accruing 60-89 Days Past Due		Accruing Greater Than 90 Days		Nonaccrual		Total
Construction and land development	$	115	$	—	$	—	$	—	$	—	$	115
Commercial real estate - owner occupied	—		—		—		—		2,945		2,945
Commercial real estate - non-owner occupied	—		—		—		—		174		174
Residential real estate	142		—		—		—		330		472
Commercial and financial	1,878		—		—		—		2,393		4,271
Consumer1	—		—		—		—		71		71
Totals	$	2,134	$	—	$	—	$	—	$	5,913	$	8,047
1Excludes $0.8 million of consumer TBM loans held for sale.

	December 31, 2023
(In thousands)	Current		Accruing 30-59 Days Past Due		Accruing 60-89 Days Past Due		Accruing Greater Than 90 Days		Nonaccrual		Total
Residential real estate	$	596	$	—	$	—	$	—	$	222	$	818
Commercial and financial	244		—		—		—		12,467		12,711
Consumer	3,166		211		156		143		312		3,988
Totals	$	4,006	$	211	$	156	$	143	$	13,001	$	17,517

TBM loans that had a payment default during the year ending December 31, 2024 and were modified in the 12 months before default were immaterial as of December 31, 2024.