XML 38 R16.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Allowance for Credit Losses | 12 Months Ended
--- | ---
Dec. 31, 2024
Receivables [Abstract] |
Allowance for Credit Losses | Note 5 - Allowance for Credit Losses Activity in the allowance for credit losses is summarized as follows:
|  | For the Year Ended December 31, 2024 |
(In thousands) |  | Beginning Balance |  |  |  | Provision for Credit Losses |  | Charge- Offs |  | Recoveries |  | Ending Balance |
Construction and land development |  | $ | 8,637 |  |  |  |  | $ | (1,404) |  |  | $ | (1) |  |  | $ | 20 |  |  | $ | 7,252 |  |
Commercial real estate - owner occupied |  | 5,529 |  |  |  |  | 6,629 |  |  | (341) |  |  | 8 |  |  | 11,825 |  |
Commercial real estate - non-owner occupied |  | 48,288 |  |  |  |  | (3,096) |  |  | (1,485) |  |  | 159 |  |  | 43,866 |  |
Residential real estate |  | 39,016 |  |  |  |  | (150) |  |  | (134) |  |  | 436 |  |  | 39,168 |  |
Commercial and financial |  | 34,343 |  |  |  |  | 7,789 |  |  | (17,616) |  |  | 3,017 |  |  | 27,533 |  |
Consumer |  | 13,118 |  |  |  |  | 6,490 |  |  | (12,288) |  |  | 1,091 |  |  | 8,411 |  |
Total |  | $ | 148,931 |  |  |  |  | $ | 16,258 |  |  | $ | (31,865) |  |  | $ | 4,731 |  |  | $ | 138,055 |  |
|  | For the Year Ended December 31, 2023 |
(In thousands) |  | Beginning Balance |  | Initial Allowance on PCD Loans Acquired During the Period |  | Provision for Credit Losses |  | Charge- Offs |  | Recoveries |  |  |  |  |  | Ending Balance |
Construction and land development |  | $ | 6,464 |  |  | $ | 5 |  |  | $ | 2,160 |  |  | $ | — |  |  | $ | 8 |  |  |  |  |  |  | $ | 8,637 |  |
Commercial real estate - owner occupied |  | 6,051 |  |  | 139 |  |  | (663) |  |  | — |  |  | 2 |  |  |  |  |  |  | 5,529 |  |
Commercial real estate - non-owner occupied |  | 43,258 |  |  | 647 |  |  | 4,315 |  |  | (120) |  |  | 188 |  |  |  |  |  |  | 48,288 |  |
Residential real estate |  | 29,605 |  |  | 400 |  |  | 8,858 |  |  | (356) |  |  | 509 |  |  |  |  |  |  | 39,016 |  |
Commercial and financial |  | 15,648 |  |  | 17,527 |  |  | 17,644 |  |  | (18,565) |  |  | 2,089 |  |  |  |  |  |  | 34,343 |  |
Consumer |  | 12,869 |  |  | 161 |  |  | 5,204 |  |  | (5,754) |  |  | 638 |  |  |  |  |  |  | 13,118 |  |
Total |  | $ | 113,895 |  |  | $ | 18,879 |  |  | $ | 37,518 |  |  | $ | (24,795) |  |  | $ | 3,434 |  |  |  |  |  |  | $ | 148,931 |  |
|  | For the Year Ended December 31, 2022 |
(In thousands) |  | Beginning Balance |  |  |  | Initial Allowance on PCD Loans Acquired During the Period |  | Provision for Credit Losses |  | Charge- Offs |  | Recoveries |  | TDR Allowance Adjustments |  | Ending Balance |
Construction and land development |  | $ | 2,751 |  |  |  |  | $ | 518 |  |  | $ | 3,127 |  |  | $ | — |  |  | $ | 68 |  |  | $ | — |  |  | $ | 6,464 |  |
Commercial real estate - owner occupied |  | 8,579 |  |  |  |  | 38 |  |  | (2,566) |  |  | — |  |  | — |  |  | — |  |  | 6,051 |  |
Commercial real estate - non-owner occupied |  | 36,617 |  |  |  |  | 880 |  |  | 5,871 |  |  | (179) |  |  | 69 |  |  | — |  |  | 43,258 |  |
Residential real estate |  | 12,811 |  |  |  |  | 229 |  |  | 16,284 |  |  | (84) |  |  | 393 |  |  | (28) |  |  | 29,605 |  |
Commercial and financial |  | 19,744 |  |  |  |  | 1,699 |  |  | (5,367) |  |  | (1,233) |  |  | 807 |  |  | (2) |  |  | 15,648 |  |
Consumer |  | 2,813 |  |  |  |  | 1,911 |  |  | 8,834 |  |  | (1,415) |  |  | 733 |  |  | (7) |  |  | 12,869 |  |
Total |  | $ | 83,315 |  |  |  |  | $ | 5,275 |  |  | $ | 26,183 |  |  | $ | (2,911) |  |  | $ | 2,070 |  |  | $ | (37) |  |  | $ | 113,895 |  |
Management establishes the allowance using relevant available information from both internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Forecast data is sourced from Moody’s, a firm widely recognized for its research, analysis, and economic forecasts. The forecasts of future economic conditions are over the expected remaining life of the loan using economic forecasts that revert to long-term historical averages over time. As of December 31, 2024 and December 31, 2023, the Company utilized a multiple scenario model comprised of a blend of Moody’s economic scenarios and considered the uncertainty associated with the assumptions in the scenarios, including continued actions taken by the Federal Reserve with regard to monetary policy and interest rates and the potential impact of those actions. Outcomes could differ from the scenarios utilized, and the Company incorporated qualitative considerations reflecting the risk of uncertain economic conditions, and for additional dimensions of risk that may not be captured in the quantitative model. The following section discusses changes in the level of the allowance for credit losses for the year ended December 31, 2024. The allowance decreased $10.9 million, or 7.3%, during 2024 to $138.1 million, or 1.34%, of loans held for investment as of December 31, 2024. In the Construction and Land Development segment, the decrease in the allowance is primarily due to a decrease in outstanding loan balances. In this segment, the primary source of repayment typically stems from proceeds of the sale or permanent financing of the underlying property. Therefore, industry, collateral type and estimated collateral values are among the relevant factors in assessing expected losses. In the Commercial Real Estate - Owner-Occupied segment, the allowance increased due to continued uncertainty in connection with commercial real estate valuations broadly. Risk characteristics include, but are not limited to, collateral type, note structure, and loan seasoning. In the Commercial Real Estate - Non-Owner-Occupied segment, the allowance decrease is driven by an improvement in the economic forecast, partially offset by the impact of higher outstanding loan balances. Repayment is often dependent upon rental income from the successful operation of the underlying property or from the sale of the property. Loan performance may be adversely affected by general economic conditions or conditions specific to the real estate market, including property types. Collateral type, note structure, and loan seasoning are among the risk characteristics analyzed for this segment. The Residential Real Estate segment includes residential mortgage, home equity loans and HELOCs. The allowance reflects higher loan balances partially offset by an improvement in macroeconomic factors. Risk characteristics considered for this segment include, but are not limited to, borrower FICO score, lien position, loan to value ratios, and loan seasoning. In the Commercial and Financial segment, borrowers are primarily small to medium-sized professional firms and other businesses, and loans are generally supported by projected cash flows of the business, collateralized by business assets, and/or guaranteed by the business owners. The decrease in the allowance is primarily due to resolution of several impaired relationships that were previously reserved. Industry, collateral type, estimated collateral values, and loan seasoning are among the relevant factors in assessing expected losses. Consumer loans include installment and revolving lines, loans for automobiles, boats, and other personal or family purposes. Risk characteristics considered for this segment include, but are not limited to, collateral type, loan to value ratios, loan seasoning and FICO scores. The decrease in allowance for Consumer was driven by the decision to sell approximately $20 million in acquired unsecured loans, resulting in a decrease in loan balances and charge-offs of $2.9 million upon the transfer to held-for-sale.

X
- Definition The entire disclosure for allowance for credit losses. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 310 -Publisher FASB -URI https://asc.fasb.org/310/tableOfContent + Details
Name: | us-gaap_AllowanceForCreditLossesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_ReceivablesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration