Note 3 - LOANS/LEASES RECEIVABLE

6 Months Ended

Jun. 30, 2024

LOANS/LEASES RECEIVABLE

LOANS/LEASES RECEIVABLE

NOTE 3 – LOANS/LEASES RECEIVABLE

The composition of the loan/lease portfolio as of June 30, 2024 and December 31, 2023 is presented as follows:

	June 30, 2024		December 31, 2023
	(dollars in thousands)
C&I:
C&I - revolving	$	362,115	$	325,243
C&I - other */**		1,463,198		1,481,778
		1,825,313		1,807,021
CRE - owner occupied		633,596		607,365
CRE - non-owner occupied		1,082,457		1,008,892
Construction and land development**		1,082,348		1,420,525
Multi-family**		1,477,483		996,143
Direct financing leases***		25,808		31,164
1-4 family real estate****		583,542		544,971
Consumer		143,839		127,335
		6,854,386		6,543,416
Allowance for credit losses		(87,706)		(87,200)
	$	6,766,680	$	6,456,216
*** Direct financing leases:
Net minimum lease payments to be received	$	28,823	$	34,966
Estimated unguaranteed residual values of leased assets		165		165
Unearned lease/residual income		(3,180)		(3,967)
		25,808		31,164
Plus deferred lease origination costs, net of fees		39		75
		25,847		31,239
Less allowance for credit losses		(800)		(992)
	$	25,047	$	30,247

*      Includes equipment financing agreements outstanding at m2, totaling $338.1 million and $319.5 million as of June 30, 2024 and December 31, 2023, respectively.

**     As of June 30, 2024, there were multi-family loans held for sale in preparation for securitization totaling $243.2 million.  There were no loans held for sale in preparation for securitization at December 31, 2023.

***   Management performs an evaluation of the estimated unguaranteed residual values of leased assets on an annual basis, at a minimum. The evaluation consists of discussions with reputable and current vendors, which is combined with management's expertise and understanding of the current states of particular industries to determine informal valuations of the equipment. As necessary and where available, management will utilize valuations by independent appraisers. The majority of leases with residual values contain a lease options rider, which requires the lessee to pay the residual value directly, finance the payment of the residual value, or extend the lease term to pay the residual value. In these cases, the residual value is protected and the risk of loss is minimal.

**** Includes residential real estate held for sale totaling $2.9 million and $2.6 million as of June 30, 2024 and December 31, 2023, respectively.

Accrued interest on loans, which is excluded from the amortized cost of loans, totaled $36.5 million and $31.8 million at June 30, 2024 and December 31, 2023, respectively, and was included in other assets on the consolidated balance sheets.

Changes in net accretable discounts on acquired loans for the three and six months ended June 30, 2024 and 2023, respectively, are presented as follows:

	For the Three Months Ended				For the Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
	Performing		Performing			Performing	Performing
	Loans		Loans		Loans		Loans
	(dollars in thousands)
Balance at the beginning of the period	$	(3,539)	$	(5,239)	$	(3,891)	$	(6,088)
Accretion recognized		268		135		620		984
Balance at the end of the period	$	(3,271)	$	(5,104)	$	(3,271)	$	(5,104)

The aging of the loan/lease portfolio by classes of loans/leases as of June 30, 2024 and December 31, 2023 is presented as follows:

	As of June 30, 2024
										Accruing Past
				30-59 Days			60-89 Days			Due 90 Days or			Nonaccrual
Classes of Loans/Leases	Current			Past Due			Past Due			More			Loans/Leases			Total
	(dollars in thousands)
C&I:
C&I - revolving	$	361,717		$	—		$	398		$	—		$	—	$		362,115
C&I - other		1,440,829			5,034			4,121			—			13,214			1,463,198
CRE - owner occupied		631,321			65			—			—			2,210			633,596
CRE - non-owner occupied		1,077,874			123			—			—			4,460			1,082,457
Construction and land development		1,065,387			13,953			649			—			2,359			1,082,348
Multi-family		1,468,961			350			—			—			8,172			1,477,483
Direct financing leases		24,705			310			264			—			529			25,808
1-4 family real estate		580,831			359			78			87			2,187			583,542
Consumer		143,198			69			157			—			415			143,839
	$	6,794,823		$	20,263		$	5,667		$	87		$	33,546		$	6,854,386
As a percentage of total loan/lease portfolio		99.13	%		0.30	%		0.08	%		0.00	%		0.49	%		100.00	%

	As of December 31, 2023
										Accruing Past
				30-59 Days			60-89 Days			Due 90 Days or			Nonaccrual
Classes of Loans/Leases	Current			Past Due			Past Due			More			Loans/Leases			Total
	(dollars in thousands)
C&I
C&I - revolving	$	325,243		$	—		$	—		$	—		$	—		$	325,243
C&I - other		1,459,818			4,848			5,603			1			11,508			1,481,778
CRE - owner occupied		604,602			—			83			—			2,680			607,365
CRE - non-owner occupied		1,003,267			631			—			—			4,994			1,008,892
Construction and land development		1,418,016			—			—			—			2,509			1,420,525
Multi-family		987,971			—			—			—			8,172			996,143
Direct financing leases		30,501			186			188			—			289			31,164
1-4 family real estate		538,229			3,883			534			85			2,240			544,971
Consumer		126,868			103			3			—			361			127,335
	$	6,494,515		$	9,651		$	6,411		$	86		$	32,753		$	6,543,416
As a percentage of total loan/lease portfolio		99.25	%		0.15	%		0.10	%		0.00	%		0.50	%		100.00	%

NPLs by classes of loans/leases as of June 30, 2024 and December 31, 2023 are presented as follows:

	As of June 30, 2024
	Accruing Past		Nonaccrual		Nonaccrual
	Due 90 Days or		Loans/Leases		Loans/Leases				Percentage of
Classes of Loans/Leases	More		with an ACL		without an ACL		Total NPLs		Total NPLs
	(dollars in thousands)
C&I:
C&I - revolving	$	—	$	—	$	—	$	—	-	%
C&I - other		—		10,923		2,291		13,214	39
CRE - owner occupied		—		1,927		283		2,210	7
CRE - non-owner occupied		—		1,784		2,676		4,460	13
Construction and land development		—		2,359		—		2,359	7
Multi-family		—		—		8,172		8,172	24
Direct financing leases		—		473		56		529	2
1-4 family real estate		87		1,817		370		2,274	7
Consumer		—		415		—		415	1
	$	87	$	19,698	$	13,848	$	33,633	100	%

	As of December 31, 2023
	Accruing Past		Nonaccrual		Nonaccrual
	Due 90 Days or		Loans/Leases		Loans/Leases				Percentage of
Classes of Loans/Leases	More		with an ACL		without an ACL		Total NPLs		Total NPLs
		(dollars in thousands)
C&I:
C&I - revolving	$	—	$	—	$	—	$	—	-	%
C&I - other		1		8,865		2,643		11,509	35
CRE - owner occupied		—		530		2,150		2,680	8
CRE - non-owner occupied		—		1,213		3,781		4,994	15
Construction and land development		—		2,509		—		2,509	8
Multi-family		—		—		8,172		8,172	25
Direct financing leases		—		206		83		289	1
1-4 family real estate		85		1,866		374		2,325	7
Consumer		—		361		—		361	1
	$	86	$	15,550	$	17,203	$	32,839	100	%

The Company did not recognize any interest income on nonaccrual loans during the three and six months ended June 30, 2024 and 2023.

Changes in the ACL on loans/leases by portfolio segment for the three and six months ended June 30, 2024 and 2023, respectively, are presented as follows:

	Three Months Ended June 30, 2024
					CRE		CRE		Construction				1-4
	C&I -		C&I -		Owner		Non-Owner		and Land		Multi-		Family
	Revolving		Other*		Occupied		Occupied		Development		Family		Real Estate		Consumer		Total
	(dollars in thousands)
Balance, beginning	$	4,440	$	26,615	$	8,416	$	12,607	$	12,737	$	12,928	$	5,289	$	1,438	$	84,470
Change in ACL for writedown of LHFS to fair value		—		—		—		—		513		(15)		—		—		498
Provision		(741)		5,469		(363)		(231)		(1,196)		1,344		(66)		127		4,343
Charge-offs		—		(1,681)		—		—		—		—		(21)		(49)		(1,751)
Recoveries		—		141		—		—		—		—		1		4		146
Balance, ending	$	3,699	$	30,544	$	8,053	$	12,376	$	12,054	$	14,257	$	5,203	$	1,520	$	87,706

	Six Months Ended June 30, 2024
					CRE		CRE		Construction				1-4
	C&I -		C&I -		Owner		Non-Owner		and Land		Multi-		Family
	Revolving		Other**		Occupied		Occupied		Development		Family		Real Estate		Consumer		Total
	(dollars in thousands)
Balance, beginning	$	4,224	$	27,460	$	8,223	$	11,581	$	16,856	$	12,463	$	4,917	$	1,476	$	87,200
Change in ACL for writedown of LHFS to fair value		—		—		—		—		—		(2,879)		—		—		(2,879)
Provision		(525)		7,696		(170)		795		(4,802)		4,673		309		103		8,079
Charge-offs		—		(5,219)		—		—		—		—		(24)		(68)		(5,311)
Recoveries		—		607		—		—		—		—		1		9		617
Balance, ending	$	3,699	$	30,544	$	8,053	$	12,376	$	12,054	$	14,257	$	5,203	$	1,520	$	87,706

*   Included within the C&I – Other column are ACL on leases with a beginning balance of $884 thousand, negative provision of $106 thousand, no charge-offs and recoveries of $22 thousand. ACL on leases was $800 thousand as of June 30, 2024.

** Included within the C&I – Other column are ACL on leases with a beginning balance of $992 thousand, provision of $174 thousand, charge-offs of $89 thousand and recoveries of $71 thousand.  ACL on leases was $800 thousand as of June 30, 2024.

	Three Months Ended June 30, 2023
					CRE		CRE		Construction				1-4
	C&I -		C&I -		Owner		Non-Owner		and Land		Multi-		Family
	Revolving		Other*		Occupied		Occupied		Development		Family		Real Estate		Consumer		Total
	(dollars in thousands)
Balance, beginning	$	4,637	$	26,637	$	9,089	$	12,632	$	15,245	$	11,621	$	5,270	$	1,442	$	86,573
Change in ACL for writedown of LHFS to fair value		—		(5)		—		—		207		(2,479)		—		—		(2,277)
Provision		(536)		2,318		(358)		(664)		436		2,087		(57)		87		3,313
Charge-offs		—		(1,920)		—		—		—		—		—		(27)		(1,947)
Recoveries		—		132		—		—		—		—		—		3		135
Balance, ending	$	4,101	$	27,162	$	8,731	$	11,968	$	15,888	$	11,229	$	5,213	$	1,505	$	85,797

	Six Months Ended June 30, 2023
					CRE		CRE		Construction				1-4
	C&I -		C&I -		Owner		Non-Owner		and Land		Multi-		Family
	Revolving		Other**		Occupied		Occupied		Development		Family		Real Estate		Consumer		Total
	(dollars in thousands)
Balance, beginning	$	4,457	$	27,753	$	9,965	$	11,749	$	14,262	$	13,186	$	4,963	$	1,371	$	87,706
Change in ACL for writedown of LHFS to fair value		—		(5)		—		—		(147)		(3,834)		—		—		(3,986)
Provision		(356)		2,875		(1,026)		214		1,785		1,877		245		157		5,771
Charge-offs		—		(3,975)		(208)		—		(12)		—		—		(27)		(4,222)
Recoveries		—		514		—		5		—		—		5		4		528
Balance, ending	$	4,101	$	27,162	$	8,731	$	11,968	$	15,888	$	11,229	$	5,213	$	1,505	$	85,797

*    Included within the C&I – Other column are ACL on leases with a beginning balance of $1.1 million, negative provision of $10 thousand, charge-offs of $49 thousand and recoveries of $12 thousand. ACL on leases was $1.0 million as of June 30, 2023.

**  Included within the C& I – Other column are ACL on leases with a beginning balance of $970 thousand, provision of $59 thousand, charge-offs of $53 thousand and recoveries of $30 thousand.  ACL on leases was $1.0 million as of June 30, 2023.

The composition of the ACL on loans/leases by portfolio segment based on evaluation method are as follows:

	As of June 30, 2024
	Amortized Cost of Loans Receivable						Allowance for Credit Losses
	Individually		Collectively				Individually		Collectively
	Evaluated for		Evaluated for				Evaluated for		Evaluated for
	Credit Losses		Credit Losses		Total		Credit Losses		Credit Losses		Total
	(dollars in thousands)
C&I :
C&I - revolving	$	3,875	$	358,240	$	362,115	$	10	$	3,689	$	3,699
C&I - other*		25,648		1,463,358		1,489,006		6,398		24,146		30,544
		29,523		1,821,598		1,851,121		6,408		27,835		34,243
CRE - owner occupied		27,495		606,101		633,596		2,371		5,682		8,053
CRE - non-owner occupied		21,751		1,060,706		1,082,457		1,075		11,301		12,376
Construction and land development		6,758		1,075,590		1,082,348		790		11,264		12,054
Multi-family		8,201		1,469,282		1,477,483		4		14,253		14,257
1-4 family real estate		3,039		580,503		583,542		280		4,923		5,203
Consumer		547		143,292		143,839		67		1,453		1,520
	$	97,314	$	6,757,072	$	6,854,386	$	10,995	$	76,711	$	87,706

*   Included within the C&I – Other category are leases individually evaluated of $529 thousand with a related allowance for credit losses of $171 thousand and leases collectively evaluated of $25.3 million with a related allowance for credit losses of $629 thousand as of June 30, 2024.

	As of December 31, 2023
	Amortized Cost of Loans Receivable						Allowance for Credit Losses
	Individually		Collectively				Individually		Collectively
	Evaluated for		Evaluated for				Evaluated for		Evaluated for
	Credit Losses		Credit Losses		Total		Credit Losses		Credit Losses		Total
	(dollars in thousands)
C&I :
C&I - revolving	$	4,680	$	320,563	$	325,243	$	632	$	3,592	$	4,224
C&I - other*		20,133		1,492,809		1,512,942		3,642		23,818		27,460
		24,813		1,813,372		1,838,185		4,274		27,410		31,684
CRE - owner occupied		22,709		584,656		607,365		2,426		5,797		8,223
CRE - non-owner occupied		21,886		987,006		1,008,892		661		10,920		11,581
Construction and land development		2,726		1,417,799		1,420,525		809		16,047		16,856
Multi-family		8,206		987,937		996,143		3		12,460		12,463
1-4 family real estate		3,128		541,843		544,971		289		4,628		4,917
Consumer		508		126,827		127,335		56		1,420		1,476
	$	83,976	$	6,459,440	$	6,543,416	$	8,518	$	78,682	$	87,200

*   Included within the C&I – Other category are leases individually evaluated of $289 thousand with a related allowance for credit losses of $68 thousand and leases collectively evaluated of $30.9 million with a related allowance for credit losses of $924 thousand as of December 31, 2023.

The following table presents the amortized cost basis of collateral dependent loans, by the primary collateral type, which are individually evaluated to determine expected credit losses as of June 30, 2024 and December 31, 2023:

	As of June 30, 2024
					Non
	Commercial		Owner-occupied		Owner-Occupied		Owner Occupied
	Assets		CRE		Real Estate		Real Estate		Securities		Equipment		Other		Total
	(dollars in thousands)
C & I:
C&I - revolving	$	3,875	$	—	$	—	$	—	$	—	$	—	$	—	$	3,875
C&I - other*		5,919		—		—		—		5,177		12,176		2,376		25,648
		9,794		—		—		—		5,177		12,176		2,376		29,523
CRE - owner occupied		—		27,432		—		63		—		—		—		27,495
CRE - non-owner occupied		—		—		21,751		—		—		—		—		21,751
Construction and land development		—		—		6,758		—		—		—		—		6,758
Multi-family		—		—		8,201		—		—		—		—		8,201
1-4 family real estate		—		—		185		2,854		—		—		—		3,039
Consumer		—		—		119		410		—		—		18		547
	$	9,794	$	27,432	$	37,014	$	3,327	$	5,177	$	12,176	$	2,394	$	97,314

*   Included within the C&I – Other category are leases individually evaluated of $529 thousand with primary collateral of equipment as of June 30, 2024.

	As of December 31, 2023
					Non
	Commercial		Owner-occupied		Owner-Occupied		Owner Occupied
	Assets		CRE		Real Estate		Real Estate		Securities		Equipment		Other		Total
	(dollars in thousands)
C & I:
C&I - revolving	$	4,680	$	—	$	—	$	—	$	—	$	—	$	—	$	4,680
C&I - other*		871		—		—		—		5,191		13,249		822		20,133
		5,551		—		—		—		5,191		13,249		822		24,813
CRE - owner occupied		—		22,644		—		65		—		—		—		22,709
CRE - non-owner occupied		—		—		21,886		—		—		—		—		21,886
Construction and land development		—		150		2,576		—		—		—		—		2,726
Multi-family		—		—		8,206		—		—		—		—		8,206
1-4 family real estate		—		—		189		2,939		—		—		—		3,128
Consumer		—		—		119		365		—		—		24		508
	$	5,551	$	22,794	$	32,976	$	3,369	$	5,191	$	13,249	$	846	$	83,976

*   Included within the C&I – Other category are leases individually evaluated of $289 thousand with primary collateral of equipment as of December 31, 2023.

For all loans except direct financing leases and equipment financing agreements, the Company’s credit quality indicator consists of internally assigned risk ratings.  Each such loan is assigned a risk rating upon origination. The risk rating is reviewed every 15 months, at a minimum, and on an as-needed basis depending on the specific circumstances of the loan.

For certain C&I loans (including equipment financing agreements and direct financing leases), the Company’s credit quality indicator is performance determined by delinquency status.  Delinquency status is updated daily by the Company’s loan system. For years prior to 2024, certain C&I loans (including equipment financing agreements and direct financing leases), certain construction and land development, certain 1-4 family real estate loans, and certain consumer loans, the Company’s credit quality indicator is performance determined by delinquency status.  Delinquency status is updated daily by the Company’s loan system.

The following tables show the credit quality indicator of loans by class of receivable and year of origination as of June 30, 2024:

	As of June 30, 2024
	Term Loans
	Amortized Cost Basis by Origination Year
													Revolving
													Loans
Internally Assigned													Amortized
Risk Rating	2024		2023		2022		2021		2020		Prior		Cost Basis		Total
	(dollars in thousands)
C&I - revolving
Pass	$	42,413	$	28,875	$	500	$	—	$	11	$	—	$	262,354	$	334,153
Special Mention		—		80		1,115		—		—		—		22,892		24,087
Substandard		2,749		—		—		—		—		—		1,126		3,875
Doubtful		—		—		—		—		—		—		—		—
Total C&I - revolving	$	45,162	$	28,955	$	1,615	$	—	$	11	$	—	$	286,372	$	362,115
C&I - other
Pass	$	177,001	$	313,812	$	253,330	$	88,465	$	55,368	$	161,254	$	37,192	$	1,086,422
Special Mention		5,892		5,914		3,624		4,859		2,950		1,117		357		24,713
Substandard		2,345		13		5,124		278		175		5,661		377		13,973
Doubtful		—		—		—		—		—		—		—		—
Total C&I - other	$	185,238	$	319,739	$	262,078	$	93,602	$	58,493	$	168,032	$	37,926	$	1,125,108
CRE - owner occupied
Pass	$	36,647	$	101,075	$	118,873	$	125,020	$	99,720	$	81,650	$	27,004	$	589,989
Special Mention		3,774		73		—		10,182		4,299		1,782		1,211		21,321
Substandard		2,172		292		534		328		16,769		2,191		—		22,286
Doubtful		—		—		—		—		—		—		—		—
Total CRE - owner occupied	$	42,593	$	101,440	$	119,407	$	135,530	$	120,788	$	85,623	$	28,215	$	633,596
CRE - non-owner occupied
Pass	$	63,524	$	206,697	$	315,786	$	169,580	$	119,775	$	136,806	$	36,921	$	1,049,089
Special Mention		4,354		158		57		—		—		6,898		150		11,617
Substandard		—		4,335		1,200		—		1,953		14,263		—		21,751
Doubtful		—		—		—		—		—		—		—		—
Total CRE - non-owner occupied	$	67,878	$	211,190	$	317,043	$	169,580	$	121,728	$	157,967	$	37,071	$	1,082,457
Construction and land development
Pass	$	219,952	$	446,423	$	261,550	$	101,730	$	14,207	$	70	$	28,518	$	1,072,450
Special Mention		—		649		—		—		—		—		2,491		3,140
Substandard		4,188		—		1,367		1,203		—		—		—		6,758
Doubtful		—		—		—		—		—		—		—		—
Total Construction and land development	$	224,140	$	447,072	$	262,917	$	102,933	$	14,207	$	70	$	31,009	$	1,082,348
Multi-family
Pass	$	100,632	$	203,713	$	335,693	$	279,294	$	350,772	$	185,529	$	13,649	$	1,469,282
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		8,201		—		—		—		8,201
Doubtful		—		—		—		—		—		—		—		—
Total Multi-family	$	100,632	$	203,713	$	335,693	$	287,495	$	350,772	$	185,529	$	13,649	$	1,477,483
1-4 family real estate
Pass	$	67,157	$	129,189	$	95,117	$	116,564	$	83,206	$	72,864	$	16,347	$	580,444
Special Mention		—		—		—		57		—		9		78		144
Substandard		—		279		772		613		234		940		116		2,954
Doubtful		—		—		—		—		—		—		—		—
Total 1-4 family real estate	$	67,157	$	129,468	$	95,889	$	117,234	$	83,440	$	73,813	$	16,541	$	583,542
Consumer
Pass	$	8,469	$	20,330	$	7,694	$	1,924	$	2,647	$	2,081	$	100,073	$	143,218
Special Mention		—		—		—		—		—		—		74		74
Substandard		—		174		160		33		—		115		65		547
Doubtful		—		—		—		—		—		—		—		—
Total Consumer	$	8,469	$	20,504	$	7,854	$	1,957	$	2,647	$	2,196	$	100,212	$	143,839
Total	$	741,269	$	1,462,081	$	1,402,496	$	908,331	$	752,086	$	673,230	$	550,995	$	6,490,488

	As of June 30, 2024
	Term Loans
	Amortized Cost Basis by Origination Year																	Revolving
																		Loans
																		Amortized
Delinquency Status *	2024			2023			2022			2021			2020			Prior		Cost Basis		Total
	(dollars in thousands)
C&I - other
Performing	$	89,027	$		120,871	$		80,150	$		27,989	$		7,982	$		971	$	—	$	326,990
Nonperforming		—			3,056			5,099			2,640			280			25		—		11,100
Total C&I - other	$	89,027		$	123,927		$	85,249		$	30,629		$	8,262		$	996	$	—	$	338,090
Direct financing leases
Performing	$	1,102	$		11,281	$		8,690	$		1,980	$		1,259	$		967	$	—	$	25,279
Nonperforming		—			78			284			38			121			8		—		529
Total Direct financing leases	$	1,102		$	11,359		$	8,974		$	2,018		$	1,380		$	975	$	—	$	25,808
Total	$	90,129		$	135,286		$	94,223		$	32,647		$	9,642		$	1,971	$	—	$	363,898

* Performing = loans/leases accruing and less than 90 days past due. Nonperforming = loans/leases on nonaccrual and accruing loans/leases that are greater than or equal to 90 days past due.

The following table shows the gross charge-offs of loans and leases by class of receivable and year of origination for the three and six months ended June 30, 2024:

	Three Months Ended June 30, 2024														Six Months Ended June 30, 2024
	Gross Charge-off by Origination Year														Gross Charge-off by Origination Year
Classes of Loans/Leases	2024		2023		2022		2021		2020		Prior		Total		2024		2023		2022		2021		2020		Prior		Total
	(dollars in thousands)														(dollars in thousands)
C&I:
C&I - revolving	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
C&I - other		—		206		826		570		79		—		1,681		7		884		2,859		1,092		112		176		5,130
CRE - owner occupied		—		—		—		—		—		—		—		—		—		—		—		—		—		—
CRE - non-owner occupied		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Construction and land development		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Multi-family		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Direct financing leases		—		—		—		—		—		—		—		—		—		10		24		42		13		89
1-4 family real estate		—		21		—		—		—		—		21		—		21		—		—		—		3		24
Consumer		—		1		22		11		15		—		49		—		1		41		11		15		—		68
	$	—	$	228	$	848	$	581	$	94	$	—	$	1,751	$	7	$	906	$	2,910	$	1,127	$	169	$	192	$	5,311

The following tables show the credit quality indicator of loans by class of receivable and year of origination as of December 31, 2023:

	As of December 31, 2023
	Term Loans
	Amortized Cost Basis by Origination Year
													Revolving
													Loans
Internally Assigned													Amortized
Risk Rating	2023		2022		2021		2020		2019		Prior		Cost Basis		Total
	(dollars in thousands)
C&I - revolving
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	294,449	$	294,449
Special Mention		—		—		—		—		—		—		26,289		26,289
Substandard		—		—		—		—		—		—		4,505		4,505
Doubtful		—		—		—		—		—		—		—		—
Total C&I - revolving	$	—	$	—	$	—	$	—	$	—	$	—	$	325,243	$	325,243
C&I - other
Pass	$	430,764	$	301,225	$	128,057	$	68,882	$	62,149	$	132,171	$	—	$	1,123,248
Special Mention		11,617		8,777		5,572		3,088		1,024		386		—		30,464
Substandard		14		81		625		443		2,108		5,320		—		8,591
Doubtful		—		—		—		—		—		—		—		—
Total C&I - other	$	442,395	$	310,083	$	134,254	$	72,413	$	65,281	$	137,877	$	—	$	1,162,303
CRE - owner occupied
Pass	$	90,708	$	124,388	$	139,598	$	109,483	$	28,702	$	58,214	$	12,959	$	564,052
Special Mention		5,091		711		8,689		5,567		466		1,828		—		22,352
Substandard		1,955		564		24		15,978		1,312		1,128		—		20,961
Doubtful		—		—		—		—		—		—		—		—
Total CRE - owner occupied	$	97,754	$	125,663	$	148,311	$	131,028	$	30,480	$	61,170	$	12,959	$	607,365
CRE - non-owner occupied
Pass	$	200,214	$	276,055	$	195,013	$	119,428	$	72,136	$	78,346	$	7,406	$	948,598
Special Mention		16,842		58		223		12,057		2,359		6,719		150		38,408
Substandard		3,805		1,200		—		1,989		14,892		—		—		21,886
Doubtful		—		—		—		—		—		—		—		—
Total CRE - non-owner occupied	$	220,861	$	277,313	$	195,236	$	133,474	$	89,387	$	85,065	$	7,556	$	1,008,892
Construction and land development
Pass	$	467,045	$	485,376	$	271,881	$	151,091	$	1,911	$	4,137	$	30,304	$	1,411,745
Special Mention		6,054		—		—		—		—		—		—		6,054
Substandard		—		1,517		1,209		—		—		—		—		2,726
Doubtful		—		—		—		—		—		—		—		—
Total Construction and land development	$	473,099	$	486,893	$	273,090	$	151,091	$	1,911	$	4,137	$	30,304	$	1,420,525
Multi-family
Pass	$	180,971	$	195,939	$	170,893	$	239,410	$	102,070	$	96,897	$	162	$	986,342
Special Mention		1,595		—		—		—		—		—		—		1,595
Substandard		—		—		8,206		—		—		—		—		8,206
Doubtful		—		—		—		—		—		—		—		—
Total Multi-family	$	182,566	$	195,939	$	179,099	$	239,410	$	102,070	$	96,897	$	162	$	996,143
1-4 family real estate
Pass	$	133,923	$	103,460	$	130,724	$	89,642	$	25,914	$	54,850	$	3,329	$	541,842
Special Mention		28		—		59		—		—		—		—		87
Substandard		144		215		815		637		519		712		—		3,042
Doubtful		—		—		—		—		—		—		—		—
Total 1-4 family real estate	$	134,095	$	103,675	$	131,598	$	90,279	$	26,433	$	55,562	$	3,329	$	544,971
Consumer
Pass	$	17,722	$	9,405	$	2,573	$	3,024	$	622	$	1,842	$	91,580	$	126,768
Special Mention		—		—		—		—		—		—		59		59
Substandard		175		119		12		12		—		133		57		508
Doubtful		—		—		—		—		—		—		—		—
Total Consumer	$	17,897	$	9,524	$	2,585	$	3,036	$	622	$	1,975	$	91,696	$	127,335
Total	$	1,568,667	$	1,509,090	$	1,064,173	$	820,731	$	316,184	$	442,683	$	471,249	$	6,192,777

	As of December 31, 2023
	Term Loans
	Amortized Cost Basis by Origination Year												Revolving
													Loans
													Amortized
Delinquency Status *	2023		2022		2021		2020		2019		Prior		Cost Basis		Total
	(dollars in thousands)
C&I - other
Performing	$	149,216	$	103,804	$	40,003	$	12,590	$	2,539	$	132	$	—	$	308,284
Nonperforming		1,533		6,138		3,049		373		92		6		—		11,191
Total C&I - other	$	150,749	$	109,942	$	43,052	$	12,963	$	2,631	$	138	$	—	$	319,475
Direct financing leases
Performing	$	12,217	$	11,170	$	3,005	$	2,631	$	1,561	$	291	$	—	$	30,875
Nonperforming		—		50		43		176		20		—		—		289
Total Direct financing leases	$	12,217	$	11,220	$	3,048	$	2,807	$	1,581	$	291	$	—	$	31,164
Total	$	162,966	$	121,162	$	46,100	$	15,770	$	4,212	$	429	$	—	$	350,639

* Performing = loans/leases accruing and less than 90 days past due. Nonperforming = loans/leases on nonaccrual and accruing loans/leases that are greater than or equal to 90 days past due.

There were no loan and lease modifications to borrowers experiencing financial difficulty during the three and six months ended June 30, 2024. Any loan and lease modifications to borrowers experiencing financial difficulty during 2023 were immaterial.

Changes in the ACL for OBS exposures for the three and six months ended June 30, 2024 and 2023 are presented as follows:

	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
	(dollars in thousands)
Balance, beginning	$	9,207	$	6,033	$	9,529	$	5,552
Provisions to expense		1,153		293		831		774
Balance, ending	$	10,360	$	6,326	$	10,360	$	6,326