Note 3 - LOANS/LEASES RECEIVABLE

9 Months Ended

Sep. 30, 2024

LOANS/LEASES RECEIVABLE

LOANS/LEASES RECEIVABLE

NOTE 3 – LOANS/LEASES RECEIVABLE

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

	September 30, 2024		December 31, 2023
	(dollars in thousands)
C&I:
C&I - revolving	$	387,409	$	325,243
C&I - other */**		1,410,081		1,481,778
		1,797,490		1,807,021
CRE - owner occupied		622,072		607,365
CRE - non-owner occupied		1,103,694		1,008,892
Construction and land development**		1,256,176		1,420,525
Multi-family**		1,297,772		996,143
Direct financing leases***		19,241		31,164
1-4 family real estate****		587,512		544,971
Consumer		144,845		127,335
		6,828,802		6,543,416
Allowance for credit losses		(86,321)		(87,200)
	$	6,742,481	$	6,456,216
*** Direct financing leases:
Net minimum lease payments to be received	$	20,987	$	34,966
Estimated unguaranteed residual values of leased assets		165		165
Unearned lease/residual income		(1,911)		(3,967)
		19,241		31,164
Plus deferred lease origination costs, net of fees		27		75
		19,268		31,239
Less allowance for credit losses		(692)		(992)
	$	18,576	$	30,247

*      Includes equipment financing agreements outstanding through m2, totaling $334.0 million and $319.5 million as of September 30, 2024 and December 31, 2023, respectively.

**    As of September 30, 2024, there were multi-family loans held for sale in preparation for securitization totaling $165.9 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 $1.1 million and $2.6 million as of September 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 September 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 nine months ended September 30, 2024 and 2023, respectively, are presented as follows:

	For the Three Months Ended				For the Nine Months Ended
	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
	Performing		Performing			Performing	Performing
	Loans		Loans		Loans		Loans
	(dollars in thousands)
Balance at the beginning of the period	$	(3,271)	$	(5,104)	$	(3,891)	$	(6,088)
Accretion recognized		474		540		1,094		1,524
Balance at the end of the period	$	(2,797)	$	(4,564)	$	(2,797)	$	(4,564)

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

	As of September 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	$	387,072		$	—		$	—		$	142		$	195	$		387,409
C&I - other		1,383,851			7,072			2,990			970			15,198			1,410,081
CRE - owner occupied		619,860			1,086			—			—			1,126			622,072
CRE - non-owner occupied		1,099,395			410			—			—			3,889			1,103,694
Construction and land development		1,251,949			1,868			—			—			2,359			1,256,176
Multi-family		1,289,201			1,199			—			—			7,372			1,297,772
Direct financing leases		18,713			106			—			—			422			19,241
1-4 family real estate		584,478			2			385			186			2,461			587,512
Consumer		144,067			237			83			—			458			144,845
	$	6,778,586		$	11,980		$	3,458		$	1,298		$	33,480		$	6,828,802
As a percentage of total loan/lease portfolio		99.26	%		0.18	%		0.05	%		0.02	%		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 September 30, 2024 and December 31, 2023 are presented as follows:

	As of September 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	$	142	$	195	$	—	$	337	1	%
C&I - other		970		12,563		2,635		16,168	47
CRE - owner occupied		—		841		285		1,126	3
CRE - non-owner occupied		—		1,213		2,676		3,889	11
Construction and land development		—		2,359		—		2,359	7
Multi-family		—		—		7,372		7,372	21
Direct financing leases		—		422		—		422	1
1-4 family real estate		186		2,093		368		2,647	8
Consumer		—		458		—		458	1
	$	1,298	$	20,144	$	13,336	$	34,778	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 nine months ended September 30, 2024 and 2023.

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

	Three Months Ended September 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	$	3,699	$	30,544	$	8,053	$	12,376	$	12,054	$	14,257	$	5,203	$	1,520	$	87,706
Change in ACL for writedown of LHFS to fair value		—		—		—		—		—		(1,812)		—		—		(1,812)
Provision		235		2,159		(472)		(330)		2,371		649		(773)		(11)		3,828
Charge-offs		—		(3,040)		(10)		—		—		(800)		—		(21)		(3,871)
Recoveries		—		443		—		—		—		—		22		5		470
Balance, ending	$	3,934	$	30,106	$	7,571	$	12,046	$	14,425	$	12,294	$	4,452	$	1,493	$	86,321

	Nine Months Ended September 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		—		—		—		—		—		(4,691)		—		—		(4,691)
Provision		(290)		9,855		(642)		465		(2,431)		5,322		(464)		92		11,907
Charge-offs		—		(8,259)		(10)		—		—		(800)		(24)		(89)		(9,182)
Recoveries		—		1,050		—		—		—		—		23		14		1,087
Balance, ending	$	3,934	$	30,106	$	7,571	$	12,046	$	14,425	$	12,294	$	4,452	$	1,493	$	86,321

*   Included within the C&I – Other column are ACL on leases with a beginning balance of $800 thousand, negative provision of $21 thousand, charge-offs of $104 thousand and recoveries of $17 thousand. ACL on leases was $692 thousand as of September 30, 2024.

** Included within the C&I – Other column are ACL on leases with a beginning balance of $992 thousand, negative provision of $195 thousand, charge-offs of $193 thousand and recoveries of $88 thousand.  ACL on leases was $692 thousand as of September 30, 2024.

	Three Months Ended September 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	$	4,101	$	27,162	$	8,731	$	11,968	$	15,888	$	11,229	$	5,213	$	1,505	$	85,797
Change in ACL for writedown of LHFS to fair value		—		—		—		—		—		175		—		—		175
Provision		368		1,111		192		(313)		992		875		(45)		80		3,260
Charge-offs		—		(1,734)		(14)		—		(38)		—		—		(30)		(1,816)
Recoveries		—		215		3		26		—		—		—		9		253
Balance, ending	$	4,469	$	26,754	$	8,912	$	11,681	$	16,842	$	12,279	$	5,168	$	1,564	$	87,669

	Nine Months Ended September 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)		(3,659)		—		—		(3,811)
Provision		12		3,986		(834)		(99)		2,777		2,752		200		237		9,031
Charge-offs		—		(5,709)		(222)		—		(50)		—		—		(57)		(6,038)
Recoveries		—		729		3		31		—		—		5		13		781
Balance, ending	$	4,469	$	26,754	$	8,912	$	11,681	$	16,842	$	12,279	$	5,168	$	1,564	$	87,669

*    Included within the C&I – Other column are ACL on leases with a beginning balance of $1.0 million, provision of $165 thousand, charge-offs of $133 thousand and recoveries of $43 thousand. ACL on leases was $1.1 million as of September 30, 2023.

**  Included within the C& I – Other column are ACL on leases with a beginning balance of $970 thousand, provision of $224 thousand, charge-offs of $186 thousand and recoveries of $73 thousand.  ACL on leases was $1.1 million as of September 30, 2023.

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

	As of September 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	$	1,361	$	386,048	$	387,409	$	100	$	3,834	$	3,934
C&I - other*		23,442		1,405,880		1,429,322		6,377		23,729		30,106
		24,803		1,791,928		1,816,731		6,477		27,563		34,040
CRE - owner occupied		26,214		595,858		622,072		2,232		5,339		7,571
CRE - non-owner occupied		19,188		1,084,506		1,103,694		667		11,379		12,046
Construction and land development		6,755		1,249,421		1,256,176		789		13,636		14,425
Multi-family		7,398		1,290,374		1,297,772		3		12,291		12,294
1-4 family real estate		3,328		584,184		587,512		318		4,134		4,452
Consumer		581		144,264		144,845		67		1,426		1,493
	$	88,267	$	6,740,535	$	6,828,802	$	10,553	$	75,768	$	86,321

*   Included within the C&I – Other category are leases individually evaluated of $422 thousand with a related allowance for credit losses of $14 thousand and leases collectively evaluated of $18.9 million with a related allowance for credit losses of $547 thousand as of September 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 September 30, 2024 and December 31, 2023:

	As of September 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	$	1,361	$	—	$	—	$	—	$	—	$	—	$	—	$	1,361
C&I - other*		2,174		—		—		—		5,172		13,197		2,899		23,442
		3,535		—		—		—		5,172		13,197		2,899		24,803
CRE - owner occupied		—		26,152		—		62		—		—		—		26,214
CRE - non-owner occupied		—		—		19,188		—		—		—		—		19,188
Construction and land development		—		—		6,755		—		—		—		—		6,755
Multi-family		—		—		7,398		—		—		—		—		7,398
1-4 family real estate		—		—		177		3,151		—		—		—		3,328
Consumer		—		—		118		441		—		—		22		581
	$	3,535	$	26,152	$	33,636	$	3,654	$	5,172	$	13,197	$	2,921	$	88,267

*   Included within the C&I – Other category are leases individually evaluated of $422 thousand with primary collateral of equipment as of September 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 September 30, 2024:

	As of September 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	$	—	$	—	$	—	$	—	$	—	$	—	$	365,674	$	365,674
Special Mention		—		—		—		—		—		—		20,710		20,710
Substandard		—		—		—		—		—		—		1,025		1,025
Doubtful		—		—		—		—		—		—		—		—
Total C&I - revolving	$	—	$	—	$	—	$	—	$	—	$	—	$	387,409	$	387,409
C&I - other
Pass	$	233,837	$	304,461	$	217,377	$	81,387	$	44,840	$	157,640	$	—	$	1,039,542
Special Mention		8,789		6,443		3,182		4,664		2,744		1,135		—		26,957
Substandard		2,544		134		504		792		138		5,451		—		9,563
Doubtful		—		—		—		—		—		—		—		—
Total C&I - other	$	245,170	$	311,038	$	221,063	$	86,843	$	47,722	$	164,226	$	—	$	1,076,062
CRE - owner occupied
Pass	$	54,674	$	107,037	$	123,285	$	105,592	$	99,115	$	77,953	$	13,834	$	581,490
Special Mention		3,757		73		1,227		9,996		1,045		2,112		—		18,210
Substandard		2,859		287		519		448		16,677		1,582		—		22,372
Doubtful		—		—		—		—		—		—		—		—
Total CRE - owner occupied	$	61,290	$	107,397	$	125,031	$	116,036	$	116,837	$	81,647	$	13,834	$	622,072
CRE - non-owner occupied
Pass	$	124,581	$	215,307	$	307,864	$	163,489	$	115,603	$	136,261	$	9,869	$	1,072,974
Special Mention		4,341		118		56		—		—		6,868		150		11,533
Substandard		—		3,754		1,200		—		1,934		12,299		—		19,187
Doubtful		—		—		—		—		—		—		—		—
Total CRE - non-owner occupied	$	128,922	$	219,179	$	309,120	$	163,489	$	117,537	$	155,428	$	10,019	$	1,103,694
Construction and land development
Pass	$	350,905	$	530,578	$	247,624	$	86,243	$	11,037	$	—	$	20,668	$	1,247,055
Special Mention		2,367		—		—		—		—		—		—		2,367
Substandard		4,188		—		1,367		1,199		—		—		—		6,754
Doubtful		—		—		—		—		—		—		—		—
Total Construction and land development	$	357,460	$	530,578	$	248,991	$	87,442	$	11,037	$	—	$	20,668	$	1,256,176
Multi-family
Pass	$	144,968	$	175,876	$	311,668	$	238,267	$	235,691	$	175,679	$	8,225	$	1,290,374
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		7,398		—		—		—		7,398
Doubtful		—		—		—		—		—		—		—		—
Total Multi-family	$	144,968	$	175,876	$	311,668	$	245,665	$	235,691	$	175,679	$	8,225	$	1,297,772
1-4 family real estate
Pass	$	95,411	$	120,427	$	94,051	$	117,112	$	80,953	$	69,116	$	7,036	$	584,106
Special Mention		53		146		—		56		—		9		—		264
Substandard		91		331		832		639		257		964		28		3,142
Doubtful		—		—		—		—		—		—		—		—
Total 1-4 family real estate	$	95,555	$	120,904	$	94,883	$	117,807	$	81,210	$	70,089	$	7,064	$	587,512
Consumer
Pass	$	10,315	$	14,901	$	6,780	$	1,447	$	2,553	$	1,725	$	106,463	$	144,184
Special Mention		—		—		—		—		—		—		80		80
Substandard		—		173		158		33		—		105		112		581
Doubtful		—		—		—		—		—		—		—		—
Total Consumer	$	10,315	$	15,074	$	6,938	$	1,480	$	2,553	$	1,830	$	106,655	$	144,845
Total	$	1,043,680	$	1,480,046	$	1,317,694	$	818,762	$	612,587	$	648,899	$	553,874	$	6,475,542

	As of September 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	$	113,568	$	109,363	$	68,794	$	23,476	$	5,991	$	476	$	—	$	321,668
Nonperforming		43		4,229		5,476		2,292		297		14		—		12,351
Total C&I - other	$	113,611	$	113,592	$	74,270	$	25,768	$	6,288	$	490	$	—	$	334,019
Direct financing leases
Performing	$	1,682	$	6,212	$	7,732	$	1,653	$	889	$	651	$	—	$	18,819
Nonperforming		—		67		211		48		91		5		—		422
Total Direct financing leases	$	1,682	$	6,279	$	7,943	$	1,701	$	980	$	656	$	—	$	19,241
Total	$	115,293	$	119,871	$	82,213	$	27,469	$	7,268	$	1,146	$	—	$	353,260

* 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 nine months ended September 30, 2024:

	Three Months Ended September 30, 2024														Nine Months Ended September 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		—		879		1,375		632		35		15		2,936		7		1,763		4,234		1,724		147		191		8,066
CRE - owner occupied		—		—		—		—		—		10		10		—		—		—		—		—		10		10
CRE - non-owner occupied		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Construction and land development		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Multi-family		—		—		—		800		—		—		800		—		—		—		800		—		—		800
Direct financing leases		—		—		67		—		27		10		104		—		—		77		24		69		23		193
1-4 family real estate		—		—		—		—		—		—		—		—		21		—		—		—		3		24
Consumer		10		6		1		—		—		4		21		10		7		42		11		15		4		89
	$	10	$	885	$	1,443	$	1,432	$	62	$	39	$	3,871	$	17	$	1,791	$	4,353	$	2,559	$	231	$	231	$	9,182

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 nine months ended September 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 nine months ended September 30, 2024 and 2023 are presented as follows:

	Three Months Ended				Nine Months Ended
	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
	(dollars in thousands)
Balance, beginning	$	10,360	$	6,326	$	9,529	$	5,552
Provisions to expense		(344)		546		487		1,320
Balance, ending	$	10,016	$	6,872	$	10,016	$	6,872