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Loans

6 Months Ended

Jun. 30, 2024

Note 6 — Loans

The following is a summary of total loans:


	June 30,		December 31,
(Dollars in thousands)	2024		2023
Loans:
Construction and land development ⁽¹⁾	$	2,592,307	$	2,923,514
Commercial non-owner-occupied		9,106,816		8,571,634
Commercial owner-occupied real estate		5,522,978		5,497,671
Consumer owner-occupied ⁽²⁾		6,969,340		6,595,005
Home equity loans		1,471,384		1,398,445
Commercial and industrial		5,769,838		5,504,539
Other income producing property		624,957		656,334
Consumer		1,175,135		1,233,650
Other loans		1,809		7,697
Total loans		33,234,564		32,388,489
Less allowance for credit losses		(472,298)		(456,573)
Loans, net	$	32,762,266	$	31,931,916

(1)

Construction and land development includes loans for both commercial construction and development, as well as loans for 1-4 family construction and lot loans.

(2)

Consumer owner-occupied real estate includes loans on both 1-4 family owner-occupied property, as well as loans collateralized by 1-4 family owner-occupied property with a business intent.

The above table reflects the loan portfolio at the amortized cost basis for the periods June 30, 2024, and December 31, 2023, to include net deferred costs of $77.8 million compared to net deferred costs of $68.0 million, respectively, and unamortized discount related to loans acquired of $42.7 million and $51.3 million, respectively. Accrued interest receivables of $132.7 million and $127.0 million, respectively, are accounted for separately and reported in other assets for the periods June 30, 2024, and December 31, 2023.

As part of the ongoing monitoring of the credit quality of our loan portfolio, management tracks certain credit quality indicators, including trends related to (i) the level of classified loans, (ii) net charge-offs, (iii) non-performing loans (see details below), and (iv) the general economic conditions of the markets that we serve.

The Company utilizes a risk grading matrix to assign a risk grade to each commercial loan. Classified loans are assessed at a minimum every six months. A description of the general characteristics of the risk grades is as follows:

●

Pass—These loans range from minimal credit risk to average, however, still acceptable credit risk.

●

Special mention—A special mention loan has potential weaknesses that deserve Management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or the institution’s credit position at some future date.

●

Substandard—A substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness, or weaknesses, that may jeopardize the liquidation of the debt. A substandard loan is characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.

●

Doubtful—A doubtful loan has all of the weaknesses inherent in one classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of the currently existing facts, conditions and values, highly questionable and improbable.

Construction and land development loans in the following table are on commercial and speculative real estate. Consumer owner-occupied loans are collateralized by 1-4 family owner-occupied property with a business intent.

The following tables present the credit risk profile by risk grade of commercial loans by origination year as of and for the period ending June 30, 2024:


		Term Loans
(Dollars in thousands)		Amortized Cost Basis by Origination Year
As of June 30, 2024	2024		2023		2022		2021		2020		Prior		Revolving		Total
Construction and land development
Risk rating:
Pass	$	125,752	$	519,137	$	1,100,600	$	128,693	$	10,082	$	17,056	$	48,633	$	1,949,953
Special mention		733		1,682		30,311		48,402		—		341		—		81,469
Substandard		47		—		15,225		765		—		608		—		16,645
Doubtful		—		—		—		—		1		5		—		6
Total Construction and land development	$	126,532	$	520,819	$	1,146,136	$	177,860	$	10,083	$	18,010	$	48,633	$	2,048,073
Construction and land development
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	74	$	2,088	$	—	$	2,162

Commercial non-owner-occupied
Risk rating:
Pass	$	346,456	$	849,321	$	2,566,851	$	1,932,908	$	620,771	$	1,995,747	$	96,578	$	8,408,632
Special mention		247		17,986		54,393		92,173		8,646		12,503		92		186,040
Substandard		39,486		43,684		139,358		77,253		82,625		129,737		—		512,143
Doubtful		—		—		—		1		—		—		—		1
Total Commercial non-owner-occupied	$	386,189	$	910,991	$	2,760,602	$	2,102,335	$	712,042	$	2,137,987	$	96,670	$	9,106,816
Commercial non-owner-occupied
Current-period gross charge-offs	$	—	$	—	$	—	$	176	$	—	$	71	$	—	$	247

Commercial Owner-Occupied
Risk rating:
Pass	$	261,676	$	574,218	$	1,024,957	$	1,044,146	$	608,433	$	1,622,413	$	73,759	$	5,209,602
Special mention		2,123		13,806		51,635		6,445		1,017		21,362		5,167		101,555
Substandard		10,043		27,888		35,338		36,984		21,518		71,331		8,708		211,810
Doubtful		4		3		—		—		—		4		—		11
Total commercial owner-occupied	$	273,846	$	615,915	$	1,111,930	$	1,087,575	$	630,968	$	1,715,110	$	87,634	$	5,522,978
Commercial owner-occupied
Current-period gross charge-offs	$	—	$	—	$	—	$	91	$	227	$	75	$	—	$	393

Commercial and industrial
Risk rating:
Pass	$	1,150,687	$	801,250	$	999,002	$	576,804	$	331,704	$	498,792	$	1,160,020	$	5,518,259
Special mention		1,782		2,765		6,856		1,624		678		4,605		22,173		40,483
Substandard		14,877		33,576		31,537		24,506		2,851		20,450		83,199		210,996
Doubtful		—		6		24		62		1		3		4		100
Total commercial and industrial	$	1,167,346	$	837,597	$	1,037,419	$	602,996	$	335,234	$	523,850	$	1,265,396	$	5,769,838
Commercial and industrial
Current-period gross charge-offs	$	523	$	941	$	2,450	$	290	$	24	$	2,852	$	1,160	$	8,240

Other income producing property
Risk rating:
Pass	$	24,165	$	57,019	$	121,434	$	89,451	$	48,566	$	118,513	$	38,353	$	497,501
Special mention		139		507		220		1,002		785		2,253		183		5,089
Substandard		927		725		3,173		2,608		329		6,957		1,299		16,018
Doubtful		—		—		—		—		—		—		—		—
Total other income producing property	$	25,231	$	58,251	$	124,827	$	93,061	$	49,680	$	127,723	$	39,835	$	518,608
Other income producing property
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Consumer owner-occupied
Risk rating:
Pass	$	2,101	$	18,493	$	6,585	$	3,920	$	644	$	712	$	29,386	$	61,841
Special mention		20		229		59		—		15		264		493		1,080
Substandard		1,075		—		—		—		5		177		—		1,257
Doubtful		—		—		—		—		—		1		—		1
Total Consumer owner-occupied	$	3,196	$	18,722	$	6,644	$	3,920	$	664	$	1,154	$	29,879	$	64,179
Consumer owner-occupied
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Other loans
Risk rating:
Pass	$	1,809	$	—	$	—	$	—	$	—	$	—	$	—	$	1,809
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total other loans	$	1,809	$	—	$	—	$	—	$	—	$	—	$	—	$	1,809
Other loans
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Total Commercial Loans
Risk rating:
Pass	$	1,912,646	$	2,819,438	$	5,819,429	$	3,775,922	$	1,620,200	$	4,253,233	$	1,446,729	$	21,647,597
Special mention		5,044		36,975		143,474		149,646		11,141		41,328		28,108		415,716
Substandard		66,455		105,873		224,631		142,116		107,328		229,260		93,206		968,869
Doubtful		4		9		24		63		2		13		4		119
Total Commercial Loans	$	1,984,149	$	2,962,295	$	6,187,558	$	4,067,747	$	1,738,671	$	4,523,834	$	1,568,047	$	23,032,301
Commercial Loans
Current-period gross charge-offs	$	523	$	941	$	2,450	$	557	$	325	$	5,086	$	1,160	$	11,042

The following table presents the credit risk profile by risk grade of commercial loans by origination year as of and for the period ending December 31, 2023:


		Term Loans
(Dollars in thousands)		Amortized Cost Basis by Origination Year
As of December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving		Total
Construction and land development
Risk rating:
Pass	$	480,860	$	1,036,691	$	503,433	$	19,626	$	5,585	$	19,200	$	49,191	$	2,114,586
Special mention		1,683		35,790		2,922		—		—		458		—		40,853
Substandard		390		46,311		765		—		4,285		767		—		52,518
Doubtful		—		—		—		3		—		5		—		8
Total Construction and land development	$	482,933	$	1,118,792	$	507,120	$	19,629	$	9,870	$	20,430	$	49,191	$	2,207,965
Construction and land development
Current-period gross charge-offs	$	—	$	—	$	—	$	204	$	—	$	2	$	—	$	206

Commercial non-owner-occupied
Risk rating:
Pass	$	759,501	$	2,501,611	$	1,878,889	$	674,470	$	706,794	$	1,535,248	$	104,698	$	8,161,211
Special mention		3,376		38,854		19,899		10,044		9,872		12,976		93		95,114
Substandard		73,282		11,928		35,692		61,893		78,976		53,388		149		315,308
Doubtful		—		—		1		—		—		—		—		1
Total Commercial non-owner-occupied	$	836,159	$	2,552,393	$	1,934,481	$	746,407	$	795,642	$	1,601,612	$	104,940	$	8,571,634
Commercial non-owner-occupied
Current-period gross charge-offs	$	—	$	—	$	51	$	—	$	—	$	253	$	—	$	304

Commercial Owner-Occupied
Risk rating:
Pass	$	556,192	$	1,015,236	$	1,088,976	$	635,694	$	648,082	$	1,176,796	$	88,298	$	5,209,274
Special mention		1,976		31,484		15,777		1,435		7,776		22,551		690		81,689
Substandard		24,240		37,922		26,810		26,308		20,310		63,220		7,890		206,700
Doubtful		3		—		—		1		—		4		—		8
Total commercial owner-occupied	$	582,411	$	1,084,642	$	1,131,563	$	663,438	$	676,168	$	1,262,571	$	96,878	$	5,497,671
Commercial owner-occupied
Current-period gross charge-offs	$	—	$	126	$	—	$	—	$	—	$	—	$	—	$	126

Commercial and industrial
Risk rating:
Pass	$	1,187,836	$	1,140,702	$	669,188	$	367,668	$	182,519	$	413,271	$	1,313,978	$	5,275,162
Special mention		2,395		7,624		3,604		2,762		3,870		898		18,300		39,453
Substandard		26,780		29,515		23,423		4,001		5,472		15,226		85,409		189,826
Doubtful		2		11		68		1		—		13		3		98
Total commercial and industrial	$	1,217,013	$	1,177,852	$	696,283	$	374,432	$	191,861	$	429,408	$	1,417,690	$	5,504,539
Commercial and industrial
Current-period gross charge-offs	$	7,272	$	3,171	$	13,169	$	429	$	765	$	1,637	$	1,144	$	27,587

Other income producing property
Risk rating:
Pass	$	58,012	$	129,858	$	96,743	$	51,615	$	40,988	$	105,810	$	39,701	$	522,727
Special mention		517		266		347		69		288		2,296		203		3,986
Substandard		693		5,062		2,634		588		630		5,772		2,121		17,500
Doubtful		—		—		—		—		—		—		—		—
Total other income producing property	$	59,222	$	135,186	$	99,724	$	52,272	$	41,906	$	113,878	$	42,025	$	544,213
Other income producing property
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Consumer owner-occupied
Risk rating:
Pass	$	18,908	$	4,509	$	2,746	$	1,293	$	287	$	315	$	25,635	$	53,693
Special mention		236		339		18		41		271		—		—		905
Substandard		24		—		—		927		1,560		182		150		2,843
Doubtful		—		—		—		—		—		1		1		2
Total Consumer owner-occupied	$	19,168	$	4,848	$	2,764	$	2,261	$	2,118	$	498	$	25,786	$	57,443
Consumer owner-occupied
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Other loans
Risk rating:
Pass	$	7,697	$	—	$	—	$	—	$	—	$	—	$	—	$	7,697
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total other loans	$	7,697	$	—	$	—	$	—	$	—	$	—	$	—	$	7,697
Other loans
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Total Commercial Loans
Risk rating:
Pass	$	3,069,006	$	5,828,607	$	4,239,975	$	1,750,366	$	1,584,255	$	3,250,640	$	1,621,501	$	21,344,350
Special mention		10,183		114,357		42,567		14,351		22,077		39,179		19,286		262,000
Substandard		125,409		130,738		89,324		93,717		111,233		138,555		95,719		784,695
Doubtful		5		11		69		5		—		23		4		117
Total Commercial Loans	$	3,204,603	$	6,073,713	$	4,371,935	$	1,858,439	$	1,717,565	$	3,428,397	$	1,736,510	$	22,391,162
Commercial Loans
Current-period gross charge-offs	$	7,272	$	3,297	$	13,220	$	633	$	765	$	1,892	$	1,144	$	28,223

For the consumer segment, delinquency of a loan is determined by past due status. Consumer loans are automatically placed on nonaccrual status once the loan is 90 days past due. Construction and land development loans are on 1-4 properties and lots.

The following table presents the credit risk profile by past due status of consumer loans by origination year as of and for the period ending June 30, 2024:


	Term Loans
(Dollars in thousands)	Amortized Cost Basis by Origination Year
As of June 30, 2024	2024		2023		2022		2021		2020		Prior		Revolving		Total
Consumer owner-occupied
Days past due:
Current	$	351,049	$	1,034,667	$	2,262,299	$	1,616,397	$	601,949	$	1,011,015	$	—	$	6,877,376
30 days past due		623		2,764		2,451		1,766		1,827		3,022		—		12,453
60 days past due		—		2,115		1,799		975		109		1,033		—		6,031
90 days past due		—		1,726		2,331		2,402		451		2,391		—		9,301
Total Consumer owner-occupied	$	351,672	$	1,041,272	$	2,268,880	$	1,621,540	$	604,336	$	1,017,461	$	—	$	6,905,161
Consumer owner-occupied
Current-period gross charge-offs	$	—	$	136	$	190	$	—	$	12	$	41	$	—	$	379

Home equity loans
Days past due:
Current	$	4,762	$	6,246	$	4,585	$	1,716	$	1,495	$	12,018	$	1,432,868	$	1,463,690
30 days past due		42		31		392		13		306		336		4,701		5,821
60 days past due		—		35		8		—		—		243		228		514
90 days past due		—		98		228		36		208		522		267		1,359
Total Home equity loans	$	4,804	$	6,410	$	5,213	$	1,765	$	2,009	$	13,119	$	1,438,064	$	1,471,384
Home equity loans
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	110	$	—	$	110

Consumer
Days past due:
Current	$	114,207	$	256,547	$	257,784	$	115,322	$	61,117	$	178,244	$	171,373	$	1,154,594
30 days past due		37		130		319		129		4		1,087		8,428		10,134
60 days past due		4		92		289		156		8		655		5,101		6,305
90 days past due		1		681		272		22		128		1,087		1,911		4,102
Total consumer	$	114,249	$	257,450	$	258,664	$	115,629	$	61,257	$	181,073	$	186,813	$	1,175,135
Consumer
Current-period gross charge-offs	$	23	$	771	$	941	$	135	$	29	$	279	$	2,517	$	4,695

Construction and land development
Days past due:
Current	$	22,626	$	135,146	$	284,726	$	68,029	$	14,886	$	18,439	$	—	$	543,852
30 days past due		—		—		—		—		—		45		—		45
60 days past due		—		—		—		—		—		—		—		—
90 days past due		—		—		320		—		1		16		—		337
Total Construction and land development	$	22,626	$	135,146	$	285,046	$	68,029	$	14,887	$	18,500	$	—	$	544,234
Construction and land development
Current-period gross charge-offs	$	—	$	—	$	304	$	—	$	—	$	—	$	—	$	304

Other income producing property
Days past due:
Current	$	1,117	$	6,106	$	41,554	$	17,367	$	4,075	$	35,549	$	229	$	105,997
30 days past due		—		—		—		—		—		243		—		243
60 days past due		—		—		—		—		—		—		—		—
90 days past due		—		—		—		—		—		109		—		109
Total other income producing property	$	1,117	$	6,106	$	41,554	$	17,367	$	4,075	$	35,901	$	229	$	106,349
Other income producing property
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Total Consumer Loans
Days past due:
Current	$	493,761	$	1,438,712	$	2,850,948	$	1,818,831	$	683,522	$	1,255,265	$	1,604,470	$	10,145,509
30 days past due		702		2,925		3,162		1,908		2,137		4,733		13,129		28,696
60 days past due		4		2,242		2,096		1,131		117		1,931		5,329		12,850
90 days past due		1		2,505		3,151		2,460		788		4,125		2,178		15,208
Total Consumer Loans	$	494,468	$	1,446,384	$	2,859,357	$	1,824,330	$	686,564	$	1,266,054	$	1,625,106	$	10,202,263
Consumer Loans
Current-period gross charge-offs	$	23	$	907	$	1,435	$	135	$	41	$	430	$	2,517	$	5,488

The following table presents total loans by origination year as of and for the period ending June 30, 2024:

Term Loans

(Dollars in thousands)

Amortized Cost Basis by Origination Year

As of June 30, 2024

2024

2023

2022

2021

2020

Prior

Revolving

Total

Total Loans

2,478,617

4,408,679

9,046,915

5,892,077

2,425,235

5,789,888

3,193,153

33,234,564

Current-period gross charge-offs

546

1,848

3,885

692

366

5,516

3,677

16,530

The following table presents the credit risk profile by past due status of consumer loans by origination year as of and for the period ending December 31, 2023:


	Term Loans
(Dollars in thousands)	Amortized Cost Basis by Origination Year
As of December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving		Total
Consumer owner-occupied
Days past due:
Current	$	1,019,956	$	2,125,156	$	1,641,518	$	628,107	$	288,304	$	809,419	$	—	$	6,512,460
30 days past due		1,589		2,268		1,524		654		707		4,012		—		10,754
60 days past due		—		766		528		680		—		813		—		2,787
90 days past due		1,280		2,538		1,089		1,689		315		4,650		—		11,561
Total Consumer owner-occupied	$	1,022,825	$	2,130,728	$	1,644,659	$	631,130	$	289,326	$	818,894	$	—	$	6,537,562
Consumer owner-occupied
Current-period gross charge-offs	$	68	$	90	$	27	$	—	$	—	$	2	$	—	$	187

Home equity loans
Days past due:
Current	$	6,551	$	6,454	$	2,887	$	1,396	$	1,003	$	11,518	$	1,358,829	$	1,388,638
30 days past due		60		—		132		21		44		539		5,860		6,656
60 days past due		—		—		12		104		—		458		1,268		1,842
90 days past due		117		—		27		194		1		672		298		1,309
Total Home equity loans	$	6,728	$	6,454	$	3,058	$	1,715	$	1,048	$	13,187	$	1,366,255	$	1,398,445
Home equity loans
Current-period gross charge-offs	$	—	$	—	$	—	$	64	$	—	$	29	$	84	$	177

Consumer
Days past due:
Current	$	299,871	$	305,283	$	141,369	$	75,213	$	60,265	$	143,725	$	182,608	$	1,208,334
30 days past due		443		321		247		142		137		1,384		10,757		13,431
60 days past due		64		254		152		4		4		973		6,420		7,871
90 days past due		93		395		174		196		110		1,108		1,938		4,014
Total consumer	$	300,471	$	306,253	$	141,942	$	75,555	$	60,516	$	147,190	$	201,723	$	1,233,650
Consumer
Current-period gross charge-offs	$	373	$	1,586	$	571	$	280	$	217	$	537	$	8,478	$	12,042

Construction and land development
Days past due:
Current	$	135,739	$	425,276	$	111,205	$	20,322	$	8,555	$	14,265	$	—	$	715,362
30 days past due		—		—		—		111		—		—		—		111
60 days past due		—		—		—		—		—		—		—		—
90 days past due		—		—		—		1		—		75		—		76
Total Construction and land development	$	135,739	$	425,276	$	111,205	$	20,434	$	8,555	$	14,340	$	—	$	715,549
Construction and land development
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	19	$	—	$	19

Other income producing property
Days past due:
Current	$	6,310	$	43,022	$	18,536	$	4,331	$	2,537	$	36,911	$	280	$	111,927
30 days past due		—		—		—		—		—		67		—		67
60 days past due		—		—		—		—		—		—		—		—
90 days past due		—		—		—		—		—		127		—		127
Total other income producing property	$	6,310	$	43,022	$	18,536	$	4,331	$	2,537	$	37,105	$	280	$	112,121
Other income producing property
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Total Consumer Loans
Days past due:
Current	$	1,468,427	$	2,905,191	$	1,915,515	$	729,369	$	360,664	$	1,015,838	$	1,541,717	$	9,936,721
30 days past due		2,092		2,589		1,903		928		888		6,002		16,617		31,019
60 days past due		64		1,020		692		788		4		2,244		7,688		12,500
90 days past due		1,490		2,933		1,290		2,080		426		6,632		2,236		17,087
Total Consumer Loans	$	1,472,073	$	2,911,733	$	1,919,400	$	733,165	$	361,982	$	1,030,716	$	1,568,258	$	9,997,327
Consumer Loans
Current-period gross charge-offs	$	441	$	1,676	$	598	$	344	$	217	$	587	$	8,562	$	12,425

The following table presents total loans by origination year as of and for the period ending December 31, 2023:


	Term Loans
(Dollars in thousands)	Amortized Cost Basis by Origination Year
As of December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving		Total
Total Loans	$	4,676,676	$	8,985,446	$	6,291,335	$	2,591,604	$	2,079,547	$	4,459,113	$	3,304,768	$	32,388,489

Current-period gross charge-offs	$	7,713	$	4,973	$	13,818	$	977	$	982	$	2,479	$	9,706	$	40,648

The following table presents an aging analysis of past due accruing loans, segregated by class:


	30 - 59 Days		60 - 89 Days		90+ Days		Total				Non-		Total
(Dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Accruing		Loans
June 30, 2024
Construction and land development	$	46	$	—	$	—	$	46	$	2,590,977	$	1,284	$	2,592,307
Commercial non-owner-occupied		2,246		60		510		2,816		9,082,664		21,336		9,106,816
Commercial owner-occupied		4,863		1,237		475		6,575		5,462,683		53,720		5,522,978
Consumer owner-occupied		9,305		682		—		9,987		6,929,207		30,146		6,969,340
Home equity loans		4,354		458		—		4,812		1,459,643		6,929		1,471,384
Commercial and industrial		22,597		5,891		5,656		34,144		5,668,946		66,748		5,769,838
Other income producing property		578		65		118		761		621,043		3,153		624,957
Consumer		9,861		5,928		—		15,789		1,153,601		5,745		1,175,135
Other loans		—		—		—		—		1,809		—		1,809
	$	53,850	$	14,321	$	6,759	$	74,930	$	32,970,573	$	189,061	$	33,234,564
December 31, 2023
Construction and land development	$	624	$	—	$	—	$	624	$	2,921,457	$	1,433	$	2,923,514
Commercial non-owner-occupied		2,194		123		1,378		3,695		8,546,630		21,309		8,571,634
Commercial owner-occupied		3,852		1,141		988		5,981		5,446,803		44,887		5,497,671
Consumer owner-occupied		7,903		552		920		9,375		6,560,359		25,271		6,595,005
Home equity loans		6,500		1,326		—		7,826		1,385,687		4,932		1,398,445
Commercial and industrial		25,231		7,194		9,193		41,618		5,399,390		63,531		5,504,539
Other income producing property		569		570		—		1,139		651,993		3,202		656,334
Consumer		13,212		7,370		—		20,582		1,207,411		5,657		1,233,650
Other loans		—		—		—		—		7,697		—		7,697
	$	60,085	$	18,276	$	12,479	$	90,840	$	32,127,427	$	170,222	$	32,388,489

The following table is a summary of information pertaining to nonaccrual loans by class, including loans modified for borrowers with financial difficulty as of June 30, 2024, and December 31, 2023:

June 30,

Greater than

Non-accrual

December 31,

(Dollars in thousands)

2024

90 Days Accruing⁽¹⁾

with no allowance⁽¹⁾

2023

Construction and land development

1,284

—

1,433

Commercial non-owner-occupied

21,336

510

17,825

21,309

Commercial owner-occupied real estate

53,720

475

24,550

44,887

Consumer owner-occupied

30,146

—

25,271

Home equity loans

6,929

—

1,220

4,932

Commercial and industrial

66,748

5,656

26,035

63,531

Other income producing property

3,153

118

1,265

3,202

Consumer

5,745

—

5,657

Total loans on nonaccrual status

189,061

6,759

70,895

170,222

(1)

Greater than 90 days accruing and non-accrual with no allowance loans at June 30, 2024.

There is no interest income recognized during the period on nonaccrual loans. The Company follows its nonaccrual policy by reversing contractual interest income in the income statement when the Company places a loan on nonaccrual status. Loans on nonaccrual status in which there is no allowance assigned are individually evaluated loans that do not carry a specific reserve. See Note 2 — Summary of Significant Accounting Policies for further detailed descriptions on individually evaluated loans.

The following is a summary of collateral dependent loans, by type of collateral, and the extent to which they are collateralized during the period:


	June 30,		Collateral			December 31,		Collateral
(Dollars in thousands)	2024		Coverage		%	2023		Coverage		%
Commercial owner-occupied real estate
Church	$	4,631	$	12,700	274%	$	3,537	$	6,705	190%
Industrial		6,892		14,644	212%		7,172		15,273	213%
Other		17,042		31,190	183%		12,231		23,747	194%
Commercial non-owner-occupied real estate
Retail		—		—			3,216		4,208	131%
Other		—		—			12,607		29,182	231%
Office		17,825		19,095	107%		—		—
Commercial and industrial
Other		41,054		61,548	150%		44,116		46,114	105%
Other income producing property
1-4 family investment property		1,265		3,286	260%		—		—
Home equity loans
Residential 1-4 family dwelling		1,220		2,250	184%		—		—
Total collateral dependent loans	$	89,929	$	144,713		$	82,879	$	125,229

The Bank designates individually evaluated loans on non-accrual with a net book balance exceeding the designated threshold as collateral dependent loans. Collateral dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. These loans do not share common risk characteristics and are not included within the collectively evaluated loans for determining the ACL. Under ASC 326-20-35-6, the Bank has adopted the collateral maintenance practical expedient to measure the ACL based on the fair value of collateral. The ACL is calculated on an individual loan basis based on the shortfall between the fair value of the loan's collateral, which is adjusted for selling costs, and amortized cost. If the fair value of the collateral exceeds the amortized cost, no allowance is required. The Bank’s threshold for individually evaluated loans is $1.0 million. The changes above in collateral percentage are due to appraisal value updates or changes in the number of loans within the asset class and collateral type. Overall collateral dependent loans increased $7.1 million during the six months ended June 30, 2024.

Loans on nonaccrual status at the date of modification are initially classified as nonaccrual. Loans on accruing status at the date of modification are initially classified as accruing if the note is reasonably assured of repayment and performance is expected in accordance with its modified terms. Such loans may be designated as nonaccrual loans subsequent to the modification date if reasonable doubt exists as to the collection of interest or principal under the modification agreement. Nonaccrual loans are returned to accruing status when there is economic substance to the modification, there is documented credit evaluation of the borrower’s financial condition, the remaining balance is reasonably assured of repayment in accordance with its modified terms, and the borrower has demonstrated sustained repayment performance in accordance with the modified terms for a reasonable period of time (generally a minimum of six months). See Note 2 — Summary of Significant Accounting Policies for how such modifications are factored into the determination of the ACL for the periods presented above.

The following tables present loans designated as modifications made to borrowers experiencing financial difficulty during the three and six months ended June 30, 2024, and 2023, respectively. The loans are segregated by type of modification and asset class, indicating the financial effect of the modifications. The amortized cost balance for the modified loans presented below exclude accrued interest receivable of approximately $119,000 and $68,000 as of June 30, 2024 and 2023, respectively.

Three Months Ended June 30,

2024

2023

Reduction in Weighted

Amortized

% of Total

Average Contractual

Amortized

% of Total

Average Contractual

(Dollars in thousands)

Cost

Asset Class

Interest Rate

Cost

Asset Class

Interest Rate

Interest rate reduction

Consumer owner-occupied

398

0.01%

1.15%

—

Total interest rate reductions

398

—

Six Months Ended June 30,

2024

2023

Reduction in Weighted

Amortized

% of Total

Average Contractual

Amortized

% of Total

Average Contractual

(Dollars in thousands)

Cost

Asset Class

Interest Rate

Cost

Asset Class

Interest Rate

Interest rate reduction

Commercial owner-occupied real estate

1,321

0.02%

3.14%

—

Total interest rate reductions

1,321

—

Three Months Ended June 30,

2024

2023

Increase in

Amortized

% of Total

Weighted Average

Amortized

% of Total

Weighted Average

(Dollars in thousands)

Cost

Asset Class

Life of Loan

Cost

Asset Class

Life of Loan

Term extension

Construction and land development

—

1,255

0.04%

24 months

Commercial non-owner-occupied

—

343

0.00%

60 months

Commercial owner-occupied real estate

11,050

0.20%

32 months

7,732

0.14%

22 months

Consumer owner-occupied

1,047

0.02%

3 months

—

Commercial and industrial

20,529

0.36%

37 months

1,787

0.03%

6 months

Total term extensions

32,626

11,117

Six Months Ended June 30,

2024

2023

Increase in

Amortized

% of Total

Weighted Average

Amortized

% of Total

Weighted Average

(Dollars in thousands)

Cost

Asset Class

Life of Loan

Cost

Asset Class

Life of Loan

Term extension

Construction and land development

—

1,512

0.05%

22 months

Commercial non-owner-occupied

—

343

0.00%

60 months

Commercial owner-occupied real estate

11,050

0.20%

32 months

8,096

0.14%

22 months

Consumer owner-occupied

1,047

0.02%

3 months

281

0.02%

6 months

Home equity loans

—

Commercial and industrial

20,529

0.36%

37 months

2,700

0.05%

7 months

Total term extensions

32,626

12,932

There were no combination – term extension and interest rate reduction loans during 2024.

Three and Six Months Ended June 30,

2024

2023

Reduction in Weighted

Increase in

Reduction in Weighted

Increase in

Amortized

Average Contractual

Weighted Average

Amortized

Average Contractual

Weighted Average

(Dollars in thousands)

Cost

Interest Rate

Life of Loan

Cost

Interest Rate

Life of Loan

Combination- Term Extension and Interest Rate Reduction

Consumer owner-occupied

—

259

3.63 to 3.00%

20 months

Total

—

259

The Bank on occasion will enter into modification agreements which extend the maturity payoff on a loan or reduce the interest rate, for borrowers willing to continue to pay, to minimize losses for the Bank. At June 30, 2024, the Company had $43,000 in remaining commitments to lend additional funds on loans to borrowers experiencing financial difficulty and modified during the current reporting period.

The following table presents the changes in status of loans modified within the previous twelve months to borrowers experiencing financial difficulty, as of June 30, 2024 and 2023, by type of modification. There were no subsequent defaults.


	June 30,
	2024						2023
	Paying Under						Paying Under
	Restructured		Converted to		Foreclosures		Restructured		Converted to		Foreclosures
	Terms		Nonaccrual		and Defaults		Terms		Nonaccrual		and Defaults
	Amortized		Amortized		Amortized		Amortized		Amortized		Amortized
(Dollars in thousands)	Cost		Cost		Cost		Cost		Cost		Cost
Interest rate reduction
Consumer owner-occupied	$	1,320		—		—		—		—		—
Total interest rate reductions	$	1,320	$	—	$	—	$	—	$	—	$	—

Term extension
Construction and land development	$	—	$	—	$	—	$	1,512	$	—	$	—
Commercial non-owner-occupied		—		—		—		343		—		—
Commercial owner-occupied real estate		11,050		—		—		8,096		—		—
Consumer owner-occupied		1,047		—		—		540		—		—
Commercial and industrial		20,529		—		—		2,700		—		—
Other income producing property		—		—		—		—		—		—
Total term extensions	$	32,626	$	—	$	—	$	13,191	$	—	$	—

	$	33,946	$	—	$	—	$	13,191	$	—	$	—

The following table depicts the performance of loans modified within the previous twelve months to borrowers experiencing financial difficulty, as of June 30, 2024 and 2023:


	June 30, 2024						June 30, 2023
	Payment Status (Amortized Cost Basis)						Payment Status (Amortized Cost Basis)
			30-89 Days		90+ Days				30-89 Days		90+ Days
(Dollars in thousands)	Current		Past Due		Past Due		Current		Past Due		Past Due
Construction and land development	$	—	$	—	$	—	$	1,512	$	—	$	—
Commercial non-owner-occupied		—		—		—		343		—		—
Commercial owner-occupied real estate		11,050		—		—		8,096		—		—
Consumer owner-occupied		1,445		922		—		540		—		—
Commercial and industrial		20,529		—		—		2,700		—		—
Other income producing property		—		—		—		—		—		—
Total	$	33,024	$	922	$	—	$	13,191	$	—	$	—