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Loans, Allowance for Credit Losses, and Asset Quality Information (Tables)
 6 Months Ended
Jun. 30, 2024
Receivables [Abstract]  
Summary of Major Categories of Total Loans Outstanding
The following is a summary of the major categories of total loans outstanding:
($ in thousands)June 30, 2024December 31, 2023
 AmountPercentageAmountPercentage
Commercial and industrial$863,366 11 %$905,862 11 %
Construction, development & other land loans764,418 9 %992,980 12 %
Commercial real estate - owner occupied1,250,267 16 %1,259,022 16 %
Commercial real estate - non owner occupied2,561,803 32 %2,528,060 31 %
Multi-family real estate497,187 6 %421,376 5 %
Residential 1-4 family real estate1,729,050 21 %1,639,469 20 %
Home equity loans/lines of credit326,411 4 %335,068 4 %
Consumer loans76,638 1 %68,443 1 %
Subtotal8,069,140 100 %8,150,280 100 %
Unamortized net deferred loan costs/(fees)708 (178)
Total loans$8,069,848 $8,150,102 

Also included in the table above are various SBA loans, generally originated under the SBA 7A program, with additional information on these loans presented in the table below.
($ in thousands)June 30, 2024December 31, 2023
Guaranteed portions of SBA loans included in table above$41,033 $35,462 
Unguaranteed portions of SBA loans included in table above105,032 107,784 
Total SBA loans included in the table above$146,065 $143,246 
Sold portions of SBA loans with servicing retained - not included in tables above$338,648 $349,275 
Schedule of Nonperforming Assets and Nonaccrual Loans
The following table summarizes the NPAs for each date presented.
($ in thousands)June 30,
2024		December 31,
2023
Nonaccrual loans$33,102 $32,208 
Modifications to borrowers in financial distress10,495 11,719 
Accruing loans > 90 days past due— — 
Total nonperforming loans43,597 43,927 
Foreclosed real estate1,150 862 
Total nonperforming assets$44,747 $44,789 
The following table is a summary of the Company’s nonaccrual loans by major categories as of June 30, 2024:
($ in thousands)Nonaccrual Loans with No AllowanceNonaccrual Loans with an AllowanceTotal Nonaccrual Loans
Commercial and industrial$544 $11,411 $11,955 
Construction, development & other land loans— 30 30 
Commercial real estate - owner occupied879 8,240 9,119 
Commercial real estate - non owner occupied540 5,299 5,839 
Residential 1-4 family real estate— 4,192 4,192 
Home equity loans/lines of credit— 1,707 1,707 
Consumer loans— 260 260 
Total$1,963 $31,139 $33,102 

The following table is a summary of the Company’s nonaccrual loans by major categories as of December 31, 2023:
($ in thousands)Nonaccrual Loans with No AllowanceNonaccrual Loans with an AllowanceTotal Nonaccrual Loans
Commercial and industrial$944 $8,932 $9,876 
Construction, development & other land loans— 399 399 
Commercial real estate - owner occupied960 6,082 7,042 
Commercial real estate - non owner occupied6,121 1,082 7,203 
Residential 1-4 family real estate— 4,843 4,843 
Home equity loans/lines of credit534 2,169 2,703 
Consumer loans— 142 142 
Total$8,559 $23,649 $32,208 
Summary of Accrued Interest Receivables Written Off
The following table represents the accrued interest receivables written off by reversing interest income during each period indicated:
($ in thousands)Six Months Ended June 30, 2024Six Months Ended June 30, 2023
Commercial and industrial$226 $162 
Construction, development & other land loans— 2 
Commercial real estate - owner occupied168 64 
Commercial real estate - non owner occupied55 7 
Residential 1-4 family real estate34 20 
Home equity loans/lines of credit16 16 
Consumer loans— 1 
Total$499 $272 
Schedule of Analysis of Payment Status
The following table presents an analysis of the payment status of the Company’s loans as of June 30, 2024:
($ in thousands)Accruing
Current		Accruing
30-59
Days Past
Due		Accruing
60-89
Days
Past
Due		Nonaccrual
Loans		Total Loans
Receivable
Commercial and industrial$848,838 $1,615 $958 $11,955 $863,366 
Construction, development & other land loans763,878 493 17 30 764,418 
Commercial real estate - owner occupied1,239,688 955 505 9,119 1,250,267 
Commercial real estate - non owner occupied2,555,460 504 — 5,839 2,561,803 
Multi-family real estate497,187 — — — 497,187 
Residential 1-4 family real estate1,721,038 683 3,137 4,192 1,729,050 
Home equity loans/lines of credit323,222 1,362 120 1,707 326,411 
Consumer loans75,822 278 278 260 76,638 
Total$8,025,133 $5,890 $5,015 $33,102 8,069,140 
Unamortized net deferred loan costs/(fees)708 
Total loans$8,069,848 

The following table presents an analysis of the payment status of the Company’s loans as of December 31, 2023:
($ in thousands)Accruing
Current		Accruing
30-59
Days
Past
Due		Accruing
60-89
Days
Past
Due		Nonaccrual
Loans		Total Loans
Receivable
Commercial and industrial$892,003 $3,726 $257 $9,876 $905,862 
Construction, development & other land loans992,084 241 256 399 992,980 
Commercial real estate - owner occupied1,250,670 906 404 7,042 1,259,022 
Commercial real estate - non owner occupied2,520,496 361 — 7,203 2,528,060 
Multi-family real estate421,376 — — — 421,376 
Residential 1-4 family real estate1,612,357 18,868 3,401 4,843 1,639,469 
Home equity loans/lines of credit331,413 603 349 2,703 335,068 
Consumer loans67,900 270 131 142 68,443 
Total$8,088,299 $24,975 $4,798 $32,208 8,150,280 
Unamortized net deferred loan costs/(fees)(178)
Total loans$8,150,102 
Analysis of Collateral-Dependent Loans
The following table presents an analysis of collateral dependent loans of the Company as of June 30, 2024:
($ in thousands)Residential PropertyBusiness AssetsCommercial PropertyTotal Collateral-Dependent Loans
Commercial and industrial$— $597 $— $597 
Construction, development & other land loans— 263 2,541 2,804 
Commercial real estate - owner occupied— — 5,478 5,478 
Commercial real estate - non owner occupied— — 14,090 14,090 
Total$— $860 $22,109 $22,969 

The following table presents an analysis of collateral dependent loans of the Company as of December 31, 2023:
($ in thousands)Residential PropertyBusiness AssetsCommercial PropertyTotal Collateral-Dependent Loans
Commercial and industrial$— $2,385 $— $2,385 
Commercial real estate - owner occupied— — 1,142 1,142 
Commercial real estate - non owner occupied— — 6,121 6,121 
Home equity loans/lines of credit534 — — 534 
Total$534 $2,385 $7,263 $10,182 
Schedule of Allowance for Loan Losses
The following tables presents the activity in the ACL on loans for each of the periods indicated. Fluctuations in the ACL each period are based on loan mix and growth, changes in the levels of nonperforming loans, economic forecasts impacting loss drivers, other assumptions and inputs to the current expected credit loss ("CECL") model, and as occurred in 2023, adjustments for acquired loan portfolios. The change to the level of ACL during the six months ended June 30, 2024 was determined based primarily on updated economic forecasts, which are a key assumption in the CECL model and which indicated improvement in certain economic forecasts along with reductions in loan balances during the period, partially offset by a continued reduction of the commercial real estate pricing index, thus resulting in little change to the ACL for the quarter or year to date.
($ in thousands)Beginning balanceCharge-offsRecoveriesProvisions / (Reversals)Ending balance
As of and for the three months ended June 30, 2024
Commercial and industrial$20,294 $(2,478)$857 $1,164 $19,837 
Construction, development & other land loans11,783 — 50 (1,837)9,996 
Commercial real estate - owner occupied18,163 (30)4 (278)17,859 
Commercial real estate - non owner occupied26,252 — 41 (417)25,876 
Multi-family real estate4,422 — — 707 5,129 
Residential 1-4 family real estate22,704 (6)106 2,051 24,855 
Home equity loans/lines of credit3,336 (2)17 (174)3,177 
Consumer loans3,113 (141)123 234 3,329 
Total$110,067 $(2,657)$1,198 $1,450 $110,058 
As of and for the six months ended June 30, 2024
Commercial and industrial$21,227 $(4,063)$1,100 $1,573 $19,837 
Construction, development & other land loans13,940 (79)147 (4,012)9,996 
Commercial real estate - owner occupied18,218 (88)8 (279)17,859 
Commercial real estate - non owner occupied24,916 (158)43 1,075 25,876 
Multi-family real estate3,825 — — 1,304 5,129 
Residential 1-4 family real estate21,396 (6)227 3,238 24,855 
Home equity loans/lines of credit3,339 (2)22 (182)3,177 
Consumer loans2,992 (376)180 533 3,329 
Total$109,853 $(4,772)$1,727 $3,250 $110,058 
($ in thousands)Beginning balanceInitial ACL for acquired PCD loansCharge-offsRecoveriesProvisions / (Reversals)Ending balance
As of and for the three months ended June 30, 2023
Commercial and industrial$23,073 $— $(1,534)$492 $1,411 $23,442 
Construction, development & other land loans18,986 — — 158 (667)18,477 
Commercial real estate - owner occupied16,082 — — 34 265 16,381 
Commercial real estate - non owner occupied25,990 — — 38 246 26,274 
Multi-family real estate3,204 — — 3 739 3,946 
Residential 1-4 family real estate12,285 — — 79 1,941 14,305 
Home equity loans/lines of credit3,481 — — 40 196 3,717 
Consumer loans3,295 — (217)41 (431)2,688 
Total$106,396 $— $(1,751)$885 $3,700 $109,230 
As of and for the six months ended June 30, 2023
Commercial and industrial$17,718 $5,197 $(3,711)$766 $3,472 $23,442 
Construction, development & other land loans15,128 49 — 223 3,077 18,477 
Commercial real estate - owner occupied14,972 191 — 70 1,148 16,381 
Commercial real estate - non owner occupied22,780 51 (235)432 3,246 26,274 
Multi-family real estate2,957 — — 7 982 3,946 
Residential 1-4 family real estate11,354 113 — 225 2,613 14,305 
Home equity loans/lines of credit3,158 8 (2)74 479 3,717 
Consumer loans2,900 1 (424)77 134 2,688 
Total$90,967 $5,610 $(4,372)$1,874 $15,151 $109,230 
The following table presents the balance and activity in the allowance for unfunded loan commitments for the six months ended June 30, 2024 and 2023:
($ in thousands)June 30, 2024June 30, 2023
Beginning balance$11,369 $13,306 
Initial provision for credit losses on unfunded commitments acquired from GrandSouth— 1,921 
Charge-offs— — 
Recoveries— — 
Reversal of provision for unfunded commitments(1,509)(2,209)
Ending balance$9,860 $13,018 
Schedule of Recorded Investment in Loans by Credit Quality Indicators
In the tables that follow, substantially all of the "Classified" loans have grades of 7 or Fail, with those categories having similar levels of risk.
The tables below present the Company’s recorded investment in loans by credit quality indicators by year of origination or renewal as of the periods indicated. Acquired loans are presented in the year originated, not in the year of acquisition.
Term Loans by Year of Origination
($ in thousands)20242023202220212020PriorRevolvingTotal
As of June 30, 2024
Commercial and industrial
Pass$57,552 $104,107 $141,628 $96,224 $67,280 $83,501 $296,600 $846,892 
Special Mention761 540 157 120 161 872 567 3,178 
Classified148 2,537 3,006 161 618 5,754 1,072 13,296 
Total commercial and industrial58,461 107,184 144,791 96,505 68,059 90,127 298,239 863,366 
Gross charge-offs, YTD71 100 574 196 121 752 2,249 4,063 
Construction, development & other land loans
Pass189,201 296,299 144,485 34,260 15,371 12,479 66,649 758,744 
Special Mention53 635 853 2,552 — 266 14 4,373 
Classified830 391 — — 67 13 — 1,301 
Total construction, development & other land loans190,084 297,325 145,338 36,812 15,438 12,758 66,663 764,418 
Gross charge-offs, YTD— 79 — — — — — 79 
Commercial real estate - owner occupied
Pass80,629 230,673 301,138 274,787 165,067 143,931 17,912 1,214,137 
Special Mention8,087 2,654 4,421 237 763 7,509 — 23,671 
Classified2,808 343 1,491 458 1,256 6,053 50 12,459 
Total commercial real estate - owner occupied91,524 233,670 307,050 275,482 167,086 157,493 17,962 1,250,267 
Gross charge-offs, YTD— 25 — — — 63 — 88 
Commercial real estate - non owner occupied
Pass225,801 431,974 729,144 673,742 274,613 168,641 30,416 2,534,331 
Special Mention13,216 274 199 16 380 6,956 452 21,493 
Classified254 400 30 12 4,233 1,050 — 5,979 
Total commercial real estate - non owner occupied239,271 432,648 729,373 673,770 279,226 176,647 30,868 2,561,803 
Gross charge-offs, YTD— — — — — 158 — 158 
Multi-family real estate
Pass50,567 42,386 153,659 162,652 42,740 17,184 27,336 496,524 
Special Mention663 — — — — — — 663 
Classified— — — — — — — — 
Total multi-family real estate51,230 42,386 153,659 162,652 42,740 17,184 27,336 497,187 
Gross charge-offs, YTD— — — — — — — — 
Residential 1-4 family real estate
Pass151,928 324,467 423,658 308,329 178,922 328,995 3,053 1,719,352 
Special Mention209 — 12 147 63 937 — 1,368 
Classified1,240 250 44 219 1,212 5,365 — 8,330 
Total residential 1-4 family real estate153,377 324,717 423,714 308,695 180,197 335,297 3,053 1,729,050 
Gross charge-offs, YTD— — — — — 6 — 6 
Home equity loans/lines of credit
Pass1,422 2,739 702 393 211 982 313,065 319,514 
Special Mention122 157 — — — — 16 295 
Classified106 44 — 141 90 9 6,212 6,602 
Total home equity loans/lines of credit1,650 2,940 702 534 301 991 319,293 326,411 
Gross charge-offs, YTD— — — — — — 2 2 
Consumer loans
Pass9,250 12,989 9,724 3,378 1,551 510 38,798 76,200 
Special Mention— — — — — — 31 31 
Classified— 4 35 55 — 29 284 407 
Total consumer loans9,250 12,993 9,759 3,433 1,551 539 39,113 76,638 
Gross charge-offs, YTD— 17 20 4 — — 335 376 
Total loans$794,847 $1,453,863 $1,914,386 $1,557,883 $754,598 $791,036 $802,527 8,069,140 
Unamortized net deferred loan costs/(fees)708 
Total loans, net of deferred loan costs/(fees)$8,069,848 
Total gross charge-offs, year to date$71 $221 $594 $200 $121 $979 $2,586 $4,772 
Term Loans by Year of Origination
($ in thousands)20232022202120202019PriorRevolvingTotal
As of December 31, 2023
Commercial and industrial
Pass$136,735 $161,131 $111,069 $75,312 $38,495 $60,626 $302,684 $886,052 
Special Mention2,832 2,547 167 185 448 672 1,135 7,986 
Classified1,626 1,152 720 1,389 1,647 4,487 803 11,824 
Total commercial and industrial141,193 164,830 111,956 76,886 40,590 65,785 304,622 905,862 
Gross charge-offs, YTD171 1,036 713 537 821 1,547 3,533 8,358 
Construction, development & other land loans
Pass563,998 231,450 90,374 16,662 11,598 5,816 70,852 990,750 
Special Mention489 273 59 — 2 4 19 846 
Classified657 708 — — 8 11 — 1,384 
Total construction, development & other land loans565,144 232,431 90,433 16,662 11,608 5,831 70,871 992,980 
Gross charge-offs, YTD— — — — — 120 — 120 
Commercial real estate - owner occupied
Pass210,449 323,852 299,135 196,343 92,452 86,784 23,198 1,232,213 
Special Mention338 2,533 271 817 5,755 2,253 — 11,967 
Classified4,456 1,505 1,721 895 2,288 3,904 73 14,842 
Total commercial real estate - owner occupied215,243 327,890 301,127 198,055 100,495 92,941 23,271 1,259,022 
Gross charge-offs, YTD— — 49 — — 92 3 144 
Commercial real estate - non owner occupied
Pass509,596 748,854 722,472 287,235 119,515 84,690 29,001 2,501,363 
Special Mention11,353 199 36 393 1,183 5,942 342 19,448 
Classified871 32 14 4,214 634 1,484 — 7,249 
Total commercial real estate - non owner occupied521,820 749,085 722,522 291,842 121,332 92,116 29,343 2,528,060 
Gross charge-offs, YTD— — 235 — — — — 235 
Multi-family real estate
Pass57,378 137,533 139,879 43,881 12,231 10,323 20,151 421,376 
Special Mention— — — — — — — — 
Classified— — — — — — — — 
Total multi-family real estate57,378 137,533 139,879 43,881 12,231 10,323 20,151 421,376 
Gross charge-offs, YTD— — — — — — — — 
Residential 1-4 family real estate
Pass363,410 400,483 317,515 186,459 94,567 260,102 3,247 1,625,783 
Special Mention681 41 202 64 587 1,987 — 3,562 
Classified1,848 50 474 741 472 6,539 — 10,124 
Total residential 1-4 family real estate365,939 400,574 318,191 187,264 95,626 268,628 3,247 1,639,469 
Gross charge-offs, YTD— — — — — 4 — 4 
Home equity loans/lines of credit
Pass2,830 1,136 1,141 223 499 1,233 319,199 326,261 
Special Mention163 — 122 — — — 18 303 
Classified255 — 146 91 112 10 7,890 8,504 
Total home equity loans/lines of credit3,248 1,136 1,409 314 611 1,243 327,107 335,068 
Gross charge-offs, YTD— — — — — — 309 309 
Consumer loans
Pass16,497 12,906 4,999 2,173 432 429 30,757 68,193 
Special Mention— — — — — — — — 
Classified130 7 45 — 3 34 31 250 
Total consumer loans16,627 12,913 5,044 2,173 435 463 30,788 68,443 
Gross charge-offs, YTD34 79 73 23 — 1 795 1,005 
Total loans$1,886,592 $2,026,392 $1,690,561 $817,077 $382,928 $537,330 $809,400 8,150,280 
Unamortized net deferred loan costs/(fees)(178)
Total loans, net of deferred loan costs/(fees)$8,150,102 
Total gross charge-offs, year to date$205 $1,115 $1,070 $560 $821 $1,764 $4,640 $10,175 
Schedule of Information Related to Loans Modified in a Troubled Debt Restructuring
The followings tables present the amortized cost basis at June 30, 2024 and June 30, 2023 of the loans modified during the three and six months then ended for borrowers experiencing financial difficulty, by loan category and type of concession granted.

($ in thousands)Payment DelayTerm ExtensionCombination - Term Extension and Payment DelayCombination - Interest Rate Reduction and Term ExtensionTotalPercent of Total Class of Loans
As of and for the three months ended June 30, 2024
Commercial and industrial$— $1 $— $96 $97 0.01 %
Residential 1-4 family real estate— 203 — — 203 0.01 %
Home equity loans/lines of credit— 290 — — 290 0.09 %
Total$— $494 $— $96 $590 0.01 %
As of and for the six months ended June 30, 2024
Commercial and industrial$114 $1 $878 $96 $1,089 0.13 %
Commercial real estate - non owner occupied— 111 — — 111 — %
Residential 1-4 family real estate— 203 — — 203 0.01 %
Home equity loans/lines of credit— 323 — 176 499 0.15 %
Total$114 $638 $878 $272 $1,902 0.02 %
($ in thousands)Payment DelayTerm ExtensionCombination - Interest Rate Reduction and Term ExtensionTotalPercent of Total Class of Loans
As of and for the three months ended June 30, 2023
Commercial and industrial$1,363 $30 $— $1,393 0.16 %
Commercial real estate - owner occupied188 287 — 475 0.04 %
Residential 1-4 family real estate— 469 — 469 0.03 %
Home equity loans/lines of credit— 1,317 — 1,317 0.39 %
Total$1,551 $2,103 $— $3,654 0.05 %
As of and for the six months ended June 30, 2023
Commercial and industrial$1,513 $105 $— $1,618 0.18 %
Construction, development & other land loans— 502 12 514 0.05 %
Commercial real estate - owner occupied188 287 — 475 0.04 %
Commercial real estate - non owner occupied— 96 — 96 — %
Residential 1-4 family real estate— 515 — 515 0.04 %
Home equity loans/lines of credit— 1,416 — 1,416 0.42 %
Consumer loans— 228 — 228 0.34 %
Total$1,701 $3,149 $12 $4,862 0.06 %
For the three and six months ended June 30, 2024 and June 30, 2023, there were no modifications for borrowers experiencing financial difficulty with principal forgiveness concessions.
The following table describes the financial effect for the three and six months ended June 30, 2024 of the modifications made for borrowers experiencing financial difficulty:
Financial Effect of Modification to Borrowers Experiencing Financial Difficulty
Weighted Average Interest Rate ReductionWeighted Average Payment Delay
(in months)		Weighted Average Term Extension
(in months)
For the three months ended June 30, 2024
Commercial and industrial0.75%027
Residential 1-4 family real estate—%0103
Home equity loans/lines of credit—%095
For the six months ended June 30, 2024
Commercial and industrial0.75%3613
Commercial real estate - non owner occupied—%013
Residential 1-4 family real estate—%0103
Home equity loans/lines of credit2.10%069
The following table describes the financial effect for the three and six months ended June 30, 2023 of the modifications made for borrowers experiencing financial difficulty:
Financial Effect of Modification to Borrowers Experiencing Financial Difficulty
Weighted Average Interest Rate ReductionWeighted Average Payment Delay
(in months)		Weighted Average Term Extension
(in months)
For the three months ended June 30, 2023
Commercial and industrial—%225
Commercial real estate - owner occupied—%1249
Residential 1-4 family real estate—%025
Home equity loans/lines of credit—%042
For the six months ended June 30, 2023
Commercial and industrial—%213
Construction, development & other land loans1.50%07
Commercial real estate - owner occupied—%1249
Commercial real estate - non owner occupied—%015
Residential 1-4 family real estate—%024
Home equity loans/lines of credit—%040
Consumer loans—%06
The Company closely monitors the performance of the loans that are modified for borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table depicts the performance of loans that were modified in the last twelve months as of June 30, 2024:
Payment Status (Amortized Cost Basis)
($ in thousands)Current30-59 Days Past Due60-89 Days Past Due90+ Days Past Due
Commercial and industrial$1,258 $— $— $— 
Construction, development & other land loans111 — 17 — 
Commercial real estate - owner occupied3,888 — — — 
Commercial real estate - non owner occupied111 — — — 
Residential 1-4 family real estate203 — 75 — 
Home equity loans/lines of credit1,691 — — — 
$7,262 $— $92 $— 
The following table depicts the performance of loans that were modified in the last twelve months as of December 31, 2023:
Payment Status (Amortized Cost Basis)
($ in thousands)Current30-59 Days Past Due60-89 Days Past Due90+ Days Past Due
Commercial and industrial$2,841 $— $— $— 
Construction, development & other land loans362 — — — 
Commercial real estate - owner occupied4,455 — — — 
Commercial real estate - non owner occupied206 — — — 
Residential 1-4 family real estate656 79 — — 
Home equity loans/lines of credit3,114 — — — 
Consumer loans6 — — — 
$11,640 $79 $— $—