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Loans, Allowance for Credit Losses, and Asset Quality Information | 9 Months Ended
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Sep. 30, 2024
Receivables [Abstract] |
Loans, Allowance for Credit Losses, and Asset Quality Information | Loans, Allowance for Credit Losses, and Asset Quality Information The following is a summary of the major categories of total loans outstanding:
($ in thousands) |  | September 30, 2024 |  | December 31, 2023
|  | Amount |  | Percentage |  | Amount |  | Percentage
Commercial and industrial |  | $ | 847,284 |  |  | 11 | % |  | $ | 905,862 |  |  | 11 | %
Construction, development & other land loans |  | 760,949 |  |  | 9 | % |  | 992,980 |  |  | 12 | %
Commercial real estate - owner occupied |  | 1,226,050 |  |  | 15 | % |  | 1,259,022 |  |  | 16 | %
Commercial real estate - non owner occupied |  | 2,572,901 |  |  | 32 | % |  | 2,528,060 |  |  | 31 | %
Multi-family real estate |  | 460,565 |  |  | 6 | % |  | 421,376 |  |  | 5 | %
Residential 1-4 family real estate |  | 1,737,133 |  |  | 22 | % |  | 1,639,469 |  |  | 20 | %
Home equity loans/lines of credit |  | 331,072 |  |  | 4 | % |  | 335,068 |  |  | 4 | %
Consumer loans |  | 76,787 |  |  | 1 | % |  | 68,443 |  |  | 1 | %
Subtotal |  | 8,012,741 |  |  | 100 | % |  | 8,150,280 |  |  | 100 | %
Unamortized net deferred loan costs/(fees) |  | 797 |  |  |  |  | (178) |  |  |
Total loans |  | $ | 8,013,538 |  |  |  |  | $ | 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) |  | September 30, 2024 |  | December 31, 2023
Guaranteed portions of SBA loans included in table above |  | $ | 36,131 |  |  | $ | 35,462 |
Unguaranteed portions of SBA loans included in table above |  | 104,472 |  |  | 107,784 |
Total SBA loans included in the table above |  | $ | 140,603 |  |  | $ | 143,246 |
Sold portions of SBA loans with servicing retained - not included in tables above |  | $ | 341,517 |  |  | $ | 349,275 |
At September 30, 2024 and December 31, 2023, there were remaining unaccreted discounts on the retained portion of sold SBA loans amounting to $3.3 million and $3.5 million, respectively. At September 30, 2024 and December 31, 2023, l oans in the amount of $6.6 billion and $6.5 billion, respectively, were pledged as collateral for certain borrowings. At September 30, 2024 and December 31, 2023, total loans included loans to executive officers and directors of the Company, and their associates, totaling approximately $63.3 million and $63.7 million, respectively. While there was one new loan, advances on existing loans totaled approximately $1.3 million for the nine months ended September 30, 2024, and repayments amounted to $1.6 million for that period. Available credit on related party loans totaled $1.0 million and $2.7 million at September 30, 2024 and December 31, 2023, respectively. As of September 30, 2024 and December 31, 2023, unamortized discounts on all acquired loans totaled $17.3 million and $24.0 million, respectively. Loan discounts are generally amortized as yield adjustments over the respective lives of the loans, so long as the loans perform. There was no impairment of acquired loans during the three and nine months ended September 30, 2024 that would require acceleration of amortization or charge off of unamortized discount. Nonperforming assets ("NPAs") are defined as nonaccrual loans, modifications to borrowers in financial distress, loans past due 90 or more days and still accruing interest, and foreclosed real estate. The following table summarizes the NPAs for each date presented.
($ in thousands) |  | September 30, 2024 |  | December 31, 2023
Nonaccrual loans |  | $ | 34,125 |  |  | $ | 32,208 |
Modifications to borrowers in financial distress |  | 10,262 |  |  | 11,719 |
Total nonperforming loans |  | 44,387 |  |  | 43,927 |
Foreclosed real estate |  | 1,519 |  |  | 862 |
Total nonperforming assets |  | $ | 45,906 |  |  | $ | 44,789 |
At September 30, 2024 and December 31, 2023, the Company had $0.8 million and $1.0 million, respectively, in residential mortgage loans in the process of foreclosure. At September 30, 2024 and December 31, 2023, there were two and one loans, respectively, with commitments to lend an immaterial amount of additional funds to a borrower whose loan was nonperforming. The following table is a summary of the Company’s nonaccrual loans by major categories as of September 30, 2024:
($ in thousands) |  | Nonaccrual Loans with No Allowance |  | Nonaccrual Loans with an Allowance |  | Total Nonaccrual Loans
Commercial and industrial |  | $ | — |  |  | $ | 10,310 |  |  | $ | 10,310 |
Construction, development & other land loans |  | — |  |  | 17 |  |  | 17 |
Commercial real estate - owner occupied |  | 879 |  |  | 9,211 |  |  | 10,090 |
Commercial real estate - non owner occupied |  | — |  |  | 6,067 |  |  | 6,067 |
Residential 1-4 family real estate |  | — |  |  | 5,578 |  |  | 5,578 |
Home equity loans/lines of credit |  | — |  |  | 1,925 |  |  | 1,925 |
Consumer loans |  | — |  |  | 138 |  |  | 138 |
Total |  | $ | 879 |  |  | $ | 33,246 |  |  | $ | 34,125 |
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 Allowance |  | Nonaccrual Loans with an Allowance |  | Total Nonaccrual Loans
Commercial and industrial |  | $ | 944 |  |  | $ | 8,932 |  |  | $ | 9,876 |
Construction, development & other land loans |  | — |  |  | 399 |  |  | 399 |
Commercial real estate - owner occupied |  | 960 |  |  | 6,082 |  |  | 7,042 |
Commercial real estate - non owner occupied |  | 6,121 |  |  | 1,082 |  |  | 7,203 |
Residential 1-4 family real estate |  | — |  |  | 4,843 |  |  | 4,843 |
Home equity loans/lines of credit |  | 534 |  |  | 2,169 |  |  | 2,703 |
Consumer loans |  | — |  |  | 142 |  |  | 142 |
Total |  | $ | 8,559 |  |  | $ | 23,649 |  |  | $ | 32,208 |
There was no interest income recognized during the periods presented on nonaccrual loans. In the period that the Company places a loan on nonaccrual status, contractual interest income is reversed in the consolidated income statement. The following table represents the accrued interest receivables written off by reversing interest income during each period indicated:
($ in thousands) |  | Nine Months Ended September 30, 2024 |  |  |  | Nine Months Ended September 30, 2023
Commercial and industrial |  | $ | 360 |  |  |  |  | $ | 182 |
Construction, development & other land loans |  | — |  |  |  |  | 2 |
Commercial real estate - owner occupied |  | 238 |  |  |  |  | 105 |
Commercial real estate - non owner occupied |  | 55 |  |  |  |  | 8 |
Residential 1-4 family real estate |  | 45 |  |  |  |  | 29 |
Home equity loans/lines of credit |  | 26 |  |  |  |  | 39 |
Consumer loans |  | 1 |  |  |  |  | 2 |
Total |  | $ | 725 |  |  |  |  | $ | 367 |
The following table presents an analysis of the payment status of the Company’s loans as of September 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 |  | $ | 834,306 |  |  | $ | 2,468 |  |  | $ | 200 |  |  |  |  | $ | 10,310 |  |  | $ | 847,284 |
Construction, development & other land loans |  | 759,957 |  |  | 910 |  |  | 65 |  |  |  |  | 17 |  |  | 760,949 |
Commercial real estate - owner occupied |  | 1,215,472 |  |  | 279 |  |  | 209 |  |  |  |  | 10,090 |  |  | 1,226,050 |
Commercial real estate - non owner occupied |  | 2,566,325 |  |  | 287 |  |  | 222 |  |  |  |  | 6,067 |  |  | 2,572,901 |
Multi-family real estate |  | 460,419 |  |  | 146 |  |  | — |  |  |  |  | — |  |  | 460,565 |
Residential 1-4 family real estate |  | 1,725,659 |  |  | 1,794 |  |  | 4,102 |  |  |  |  | 5,578 |  |  | 1,737,133 |
Home equity loans/lines of credit |  | 327,772 |  |  | 1,278 |  |  | 97 |  |  |  |  | 1,925 |  |  | 331,072 |
Consumer loans |  | 76,095 |  |  | 322 |  |  | 232 |  |  |  |  | 138 |  |  | 76,787 |
Total |  | $ | 7,966,005 |  |  | $ | 7,484 |  |  | $ | 5,127 |  |  |  |  | $ | 34,125 |  |  | 8,012,741 |
Unamortized net deferred loan costs/(fees) |  |  |  |  |  |  |  | 797 |
Total loans |  |  |  |  |  |  |  |  |  |  |  | $ | 8,013,538 |
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 loans |  | 992,084 |  |  | 241 |  |  | 256 |  |  |  |  | 399 |  |  | 992,980 |
Commercial real estate - owner occupied |  | 1,250,670 |  |  | 906 |  |  | 404 |  |  |  |  | 7,042 |  |  | 1,259,022 |
Commercial real estate - non owner occupied |  | 2,520,496 |  |  | 361 |  |  | — |  |  |  |  | 7,203 |  |  | 2,528,060 |
Multi-family real estate |  | 421,376 |  |  | — |  |  | — |  |  |  |  | — |  |  | 421,376 |
Residential 1-4 family real estate |  | 1,612,357 |  |  | 18,868 |  |  | 3,401 |  |  |  |  | 4,843 |  |  | 1,639,469 |
Home equity loans/lines of credit |  | 331,413 |  |  | 603 |  |  | 349 |  |  |  |  | 2,703 |  |  | 335,068 |
Consumer loans |  | 67,900 |  |  | 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 |
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. The Company reviews individually evaluated loans on nonaccrual with a net book balance of $500,000 or greater for designation as collateral dependent loans, as well as certain other loans that may still be accruing interest and/or are less than $500,000 in size that management of the Company designates as having higher risk. These loans do not share common risk characteristics and are not included within the collectively evaluated loans for determining the Allowance for Credit Losses ("ACL"). The following table presents an analysis of collateral dependent loans of the Company as of September 30, 2024:
($ in thousands) |  | Residential Property |  | Business Assets |  |  |  | Commercial Property |  |  |  | Total Collateral-Dependent Loans
Commercial real estate - owner occupied |  | $ | — |  |  | $ | — |  |  |  |  | $ | 879 |  |  |  |  | $ | 879 |
Commercial real estate - non owner occupied |  | — |  |  | — |  |  |  |  | 5,050 |  |  |  |  | 5,050 |
Total |  | $ | — |  |  | $ | — |  |  |  |  | $ | 5,929 |  |  |  |  | $ | 5,929 |
The following table presents an analysis of collateral dependent loans of the Company as of December 31, 2023:
($ in thousands) |  | Residential Property |  | Business Assets |  |  |  | Commercial Property |  |  |  | Total 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 credit |  | 534 |  |  | — |  |  |  |  | — |  |  |  |  | 534 |
Total |  | $ | 534 |  |  | $ | 2,385 |  |  |  |  | $ | 7,263 |  |  |  |  | $ | 10,182 |
There have been no material changes from the treatment of collateral dependent loans under CECL as discussed in Note 4 of the Company's Annual Report on Form 10-K for the year ended December 31, 2023. The following tables presents the activity in the ACL on loans for each of the periods indicated to include Purchase Credit Deterioration (“PCD”) activity in applicable periods. 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 nine months ended September 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. Other than the impact from Hurricane Helene, there was little change to the ACL for the quarter or year to date.
($ in thousands) |  | Beginning balance |  | Charge-offs |  | Recoveries |  | Provisions / (Reversals) |  | Ending balance
As of and for the three months ended September 30, 2024 |  |  |  |  |  |  |
Commercial and industrial |  | $ | 19,837 |  |  | $ | (1,913) |  |  | $ | 246 |  |  | $ | (27) |  |  | $ | 18,143 |
Construction, development & other land loans |  | 9,996 |  |  | — |  |  | 35 |  |  | 1,394 |  |  | 11,425 |
Commercial real estate - owner occupied |  | 17,859 |  |  | (21) |  |  | 4 |  |  | 657 |  |  | 18,499 |
Commercial real estate - non owner occupied |  | 25,876 |  |  | — |  |  | 3 |  |  | 2,754 |  |  | 28,633 |
Multi-family real estate |  | 5,129 |  |  | — |  |  | — |  |  | 161 |  |  | 5,290 |
Residential 1-4 family real estate |  | 24,855 |  |  | — |  |  | 28 |  |  | 9,183 |  |  | 34,066 |
Home equity loans/lines of credit |  | 3,177 |  |  | — |  |  | 232 |  |  | 165 |  |  | 3,574 |
Consumer loans |  | 3,329 |  |  | (754) |  |  | 17 |  |  | 496 |  |  | 3,088 |
Total |  | $ | 110,058 |  |  | $ | (2,688) |  |  | $ | 565 |  |  | $ | 14,783 |  |  | $ | 122,718 |
As of and for the nine months ended September 30, 2024 |  |  |  |  |  |  |
Commercial and industrial |  | $ | 21,227 |  |  | $ | (5,976) |  |  | $ | 1,346 |  |  | $ | 1,546 |  |  | $ | 18,143 |
Construction, development & other land loans |  | 13,940 |  |  | (79) |  |  | 182 |  |  | (2,618) |  |  | 11,425 |
Commercial real estate - owner occupied |  | 18,218 |  |  | (109) |  |  | 12 |  |  | 378 |  |  | 18,499 |
Commercial real estate - non owner occupied |  | 24,916 |  |  | (158) |  |  | 46 |  |  | 3,829 |  |  | 28,633 |
Multi-family real estate |  | 3,825 |  |  | — |  |  | — |  |  | 1,465 |  |  | 5,290 |
Residential 1-4 family real estate |  | 21,396 |  |  | (6) |  |  | 255 |  |  | 12,421 |  |  | 34,066 |
Home equity loans/lines of credit |  | 3,339 |  |  | (2) |  |  | 254 |  |  | (17) |  |  | 3,574 |
Consumer loans |  | 2,992 |  |  | (1,130) |  |  | 197 |  |  | 1,029 |  |  | 3,088 |
Total |  | $ | 109,853 |  |  | $ | (7,460) |  |  | $ | 2,292 |  |  | $ | 18,033 |  |  | $ | 122,718 |
($ in thousands) |  | Beginning balance |  | Initial ACL for acquired PCD loans |  | Charge-offs |  | Recoveries |  | Provisions / (Reversals) |  | Ending balance
As of and for the three months ended September 30, 2023 |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 23,442 |  |  | $ | — |  |  | $ | (2,650) |  |  | $ | 450 |  |  | $ | 1,202 |  |  | $ | 22,444 |
Construction, development & other land loans |  | 18,477 |  |  | — |  |  | (120) |  |  | 54 |  |  | (4,761) |  |  | 13,650 |
Commercial real estate - owner occupied |  | 16,381 |  |  | — |  |  | (24) |  |  | 34 |  |  | 1,873 |  |  | 18,264 |
Commercial real estate - non owner occupied |  | 26,274 |  |  | — |  |  | — |  |  | 302 |  |  | (1,240) |  |  | 25,336 |
Multi-family real estate |  | 3,946 |  |  | — |  |  | — |  |  | 3 |  |  | (481) |  |  | 3,468 |
Residential 1-4 family real estate |  | 14,305 |  |  | — |  |  | — |  |  | 50 |  |  | 4,374 |  |  | 18,729 |
Home equity loans/lines of credit |  | 3,717 |  |  | — |  |  | — |  |  | 11 |  |  | (431) |  |  | 3,297 |
Consumer loans |  | 2,688 |  |  | — |  |  | (409) |  |  | 67 |  |  | 664 |  |  | 3,010 |
Total |  | $ | 109,230 |  |  | $ | — |  |  | $ | (3,203) |  |  | $ | 971 |  |  | $ | 1,200 |  |  | $ | 108,198 |
As of and for the nine months ended September 30, 2023 |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 17,718 |  |  | $ | 5,197 |  |  | $ | (6,361) |  |  | $ | 1,216 |  |  | $ | 4,674 |  |  | $ | 22,444 |
Construction, development & other land loans |  | 15,128 |  |  | 49 |  |  | (120) |  |  | 277 |  |  | (1,684) |  |  | 13,650 |
Commercial real estate - owner occupied |  | 14,972 |  |  | 191 |  |  | (24) |  |  | 104 |  |  | 3,021 |  |  | 18,264 |
Commercial real estate - non owner occupied |  | 22,780 |  |  | 51 |  |  | (235) |  |  | 734 |  |  | 2,006 |  |  | 25,336 |
Multi-family real estate |  | 2,957 |  |  | — |  |  | — |  |  | 10 |  |  | 501 |  |  | 3,468 |
Residential 1-4 family real estate |  | 11,354 |  |  | 113 |  |  | — |  |  | 275 |  |  | 6,987 |  |  | 18,729 |
Home equity loans/lines of credit |  | 3,158 |  |  | 8 |  |  | (2) |  |  | 85 |  |  | 48 |  |  | 3,297 |
Consumer loans |  | 2,900 |  |  | 1 |  |  | (833) |  |  | 144 |  |  | 798 |  |  | 3,010 |
Total |  | $ | 90,967 |  |  | $ | 5,610 |  |  | $ | (7,575) |  |  | $ | 2,845 |  |  | $ | 16,351 |  |  | $ | 108,198 |
Credit Quality Indicators There have been no material changes from the treatment of credit quality tracking and risk grade descriptions as discussed in Note 4 of the Company's Annual Report on Form 10-K for the year ended December 31, 2023. 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) | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior |  | Revolving |  | Total
As of September 30, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  |  |  |  |  |  |  |  |
Pass | $ | 91,552 |  |  | $ | 88,620 |  |  | $ | 128,666 |  |  | $ | 88,256 |  |  | $ | 61,355 |  |  | $ | 73,296 |  |  | $ | 299,188 |  |  | $ | 830,933 |
Special Mention | 944 |  |  | 361 |  |  | 174 |  |  | 207 |  |  | 347 |  |  | 794 |  |  | 1,890 |  |  | 4,717 |
Classified | 160 |  |  | 1,817 |  |  | 3,440 |  |  | 486 |  |  | 1,009 |  |  | 4,181 |  |  | 541 |  |  | 11,634 |
Total commercial and industrial | 92,656 |  |  | 90,798 |  |  | 132,280 |  |  | 88,949 |  |  | 62,711 |  |  | 78,271 |  |  | 301,619 |  |  | 847,284 |
Gross charge-offs, YTD | 126 |  |  | 460 |  |  | 800 |  |  | 195 |  |  | 134 |  |  | 752 |  |  | 3,509 |  |  | 5,976 |
Construction, development & other land loans |  |  |  |  |  |  |  |  |  |
Pass | 321,727 |  |  | 192,331 |  |  | 114,704 |  |  | 32,788 |  |  | 14,857 |  |  | 9,801 |  |  | 70,195 |  |  | 756,403 |
Special Mention | 2,497 |  |  | 612 |  |  | 164 |  |  | 9 |  |  | — |  |  | 265 |  |  | 13 |  |  | 3,560 |
Classified | 910 |  |  | — |  |  | — |  |  | — |  |  | 67 |  |  | 9 |  |  | — |  |  | 986 |
Total construction, development & other land loans | 325,134 |  |  | 192,943 |  |  | 114,868 |  |  | 32,797 |  |  | 14,924 |  |  | 10,075 |  |  | 70,208 |  |  | 760,949 |
Gross charge-offs, YTD | — |  |  | 79 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 79 |
Commercial real estate - owner occupied |  |  |  |  |  |  |  |  |  |
Pass | 120,529 |  |  | 229,996 |  |  | 272,334 |  |  | 261,248 |  |  | 158,253 |  |  | 127,257 |  |  | 16,711 |  |  | 1,186,328 |
Special Mention | 13,218 |  |  | 1,940 |  |  | 3,515 |  |  | 187 |  |  | 147 |  |  | 7,654 |  |  | — |  |  | 26,661 |
Classified | 957 |  |  | 179 |  |  | 1,977 |  |  | 1,268 |  |  | 1,572 |  |  | 7,108 |  |  | — |  |  | 13,061 |
Total commercial real estate - owner occupied | 134,704 |  |  | 232,115 |  |  | 277,826 |  |  | 262,703 |  |  | 159,972 |  |  | 142,019 |  |  | 16,711 |  |  | 1,226,050 |
Gross charge-offs, YTD | — |  |  | 25 |  |  | — |  |  | 19 |  |  | — |  |  | 65 |  |  | — |  |  | 109 |
Commercial real estate - non owner occupied |  |  |  |  |  |  |  |  |  |
Pass | 345,170 |  |  | 435,235 |  |  | 683,731 |  |  | 638,235 |  |  | 263,275 |  |  | 149,114 |  |  | 29,739 |  |  | 2,544,499 |
Special Mention | 14,968 |  |  | 268 |  |  | 189 |  |  | 13 |  |  | 337 |  |  | 5,890 |  |  | — |  |  | 21,665 |
Classified | 234 |  |  | 401 |  |  | 570 |  |  | 11 |  |  | 4,233 |  |  | 1,288 |  |  | — |  |  | 6,737 |
Total commercial real estate - non owner occupied | 360,372 |  |  | 435,904 |  |  | 684,490 |  |  | 638,259 |  |  | 267,845 |  |  | 156,292 |  |  | 29,739 |  |  | 2,572,901 |
Gross charge-offs, YTD | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 158 |  |  | — |  |  | 158 |
Multi-family real estate |  |  |  |  |  |  |  |  |  |
Pass | 55,518 |  |  | 41,990 |  |  | 115,324 |  |  | 161,142 |  |  | 41,642 |  |  | 14,628 |  |  | 29,379 |  |  | 459,623 |
Special Mention | — |  |  | 146 |  |  | — |  |  | — |  |  | — |  |  | 796 |  |  | — |  |  | 942 |
Classified | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total multi-family real estate | 55,518 |  |  | 42,136 |  |  | 115,324 |  |  | 161,142 |  |  | 41,642 |  |  | 15,424 |  |  | 29,379 |  |  | 460,565 |
Gross charge-offs, YTD | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Residential 1-4 family real estate |  |  |  |  |  |  |  |  |  |
Pass | 181,377 |  |  | 333,878 |  |  | 416,275 |  |  | 301,453 |  |  | 176,169 |  |  | 311,209 |  |  | 3,298 |  |  | 1,723,659 |
Special Mention | 215 |  |  | — |  |  | 11 |  |  | 139 |  |  | 62 |  |  | 910 |  |  | — |  |  | 1,337 |
Classified | 1,892 |  |  | 245 |  |  | 2,257 |  |  | 549 |  |  | 1,198 |  |  | 5,996 |  |  | — |  |  | 12,137 |
Total residential 1-4 family real estate | 183,484 |  |  | 334,123 |  |  | 418,543 |  |  | 302,141 |  |  | 177,429 |  |  | 318,115 |  |  | 3,298 |  |  | 1,737,133 |
Gross charge-offs, YTD | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 6 |  |  | — |  |  | 6 |
Home equity loans/lines of credit |  |  |  |  |  |  |  |  |  |
Pass | 2,128 |  |  | 2,679 |  |  | 661 |  |  | 377 |  |  | 175 |  |  | 943 |  |  | 317,182 |  |  | 324,145 |
Special Mention | 121 |  |  | 152 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 16 |  |  | 289 |
Classified | 175 |  |  | 54 |  |  | — |  |  | 137 |  |  | 89 |  |  | 8 |  |  | 6,175 |  |  | 6,638 |
Total home equity loans/lines of credit | 2,424 |  |  | 2,885 |  |  | 661 |  |  | 514 |  |  | 264 |  |  | 951 |  |  | 323,373 |  |  | 331,072 |
Gross charge-offs, YTD | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2 |  |  | 2 |
Consumer loans |  |  |  |  |  |  |  |  |  |
Pass | 13,328 |  |  | 11,137 |  |  | 8,076 |  |  | 2,757 |  |  | 1,252 |  |  | 373 |  |  | 39,517 |  |  | 76,440 |
Special Mention | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 23 |  |  | 23 |
Classified | 6 |  |  | 72 |  |  | 46 |  |  | 21 |  |  | — |  |  | 28 |  |  | 151 |  |  | 324 |
Total consumer loans | 13,334 |  |  | 11,209 |  |  | 8,122 |  |  | 2,778 |  |  | 1,252 |  |  | 401 |  |  | 39,691 |  |  | 76,787 |
Gross charge-offs, YTD | 6 |  |  | 53 |  |  | 24 |  |  | 33 |  |  | — |  |  | — |  |  | 1,014 |  |  | 1,130 |
Total loans | $ | 1,167,626 |  |  | $ | 1,342,113 |  |  | $ | 1,752,114 |  |  | $ | 1,489,283 |  |  | $ | 726,039 |  |  | $ | 721,548 |  |  | $ | 814,018 |  |  | 8,012,741 |
Unamortized net deferred loan costs/(fees) |  |  |  |  |  |  |  |  |  |  |  |  |  | 797 |
Total loans, net of deferred loan costs/(fees) |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 8,013,538 |
Total gross charge-offs, year to date | $ | 132 |  |  | $ | 617 |  |  | $ | 824 |  |  | $ | 247 |  |  | $ | 134 |  |  | $ | 981 |  |  | $ | 4,525 |  |  | $ | 7,460 |
| Term Loans by Year of Origination |  |  |  |
($ in thousands) | 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | Prior |  | Revolving |  | Total
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 Mention | 2,832 |  |  | 2,547 |  |  | 167 |  |  | 185 |  |  | 448 |  |  | 672 |  |  | 1,135 |  |  | 7,986 |
Classified | 1,626 |  |  | 1,152 |  |  | 720 |  |  | 1,389 |  |  | 1,647 |  |  | 4,487 |  |  | 803 |  |  | 11,824 |
Total commercial and industrial | 141,193 |  |  | 164,830 |  |  | 111,956 |  |  | 76,886 |  |  | 40,590 |  |  | 65,785 |  |  | 304,622 |  |  | 905,862 |
Gross charge-offs, YTD | 171 |  |  | 1,036 |  |  | 713 |  |  | 537 |  |  | 821 |  |  | 1,547 |  |  | 3,533 |  |  | 8,358 |
Construction, development & other land loans |  |  |  |  |  |  |  |  |  |
Pass | 563,998 |  |  | 231,450 |  |  | 90,374 |  |  | 16,662 |  |  | 11,598 |  |  | 5,816 |  |  | 70,852 |  |  | 990,750 |
Special Mention | 489 |  |  | 273 |  |  | 59 |  |  | — |  |  | 2 |  |  | 4 |  |  | 19 |  |  | 846 |
Classified | 657 |  |  | 708 |  |  | — |  |  | — |  |  | 8 |  |  | 11 |  |  | — |  |  | 1,384 |
Total construction, development & other land loans | 565,144 |  |  | 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 |  |  |  |  |  |  |  |  |  |
Pass | 210,449 |  |  | 323,852 |  |  | 299,135 |  |  | 196,343 |  |  | 92,452 |  |  | 86,784 |  |  | 23,198 |  |  | 1,232,213 |
Special Mention | 338 |  |  | 2,533 |  |  | 271 |  |  | 817 |  |  | 5,755 |  |  | 2,253 |  |  | — |  |  | 11,967 |
Classified | 4,456 |  |  | 1,505 |  |  | 1,721 |  |  | 895 |  |  | 2,288 |  |  | 3,904 |  |  | 73 |  |  | 14,842 |
Total commercial real estate - owner occupied | 215,243 |  |  | 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 |  |  |  |  |  |  |  |  |  |
Pass | 509,596 |  |  | 748,854 |  |  | 722,472 |  |  | 287,235 |  |  | 119,515 |  |  | 84,690 |  |  | 29,001 |  |  | 2,501,363 |
Special Mention | 11,353 |  |  | 199 |  |  | 36 |  |  | 393 |  |  | 1,183 |  |  | 5,942 |  |  | 342 |  |  | 19,448 |
Classified | 871 |  |  | 32 |  |  | 14 |  |  | 4,214 |  |  | 634 |  |  | 1,484 |  |  | — |  |  | 7,249 |
Total commercial real estate - non owner occupied | 521,820 |  |  | 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 |  |  |  |  |  |  |  |  |  |
Pass | 57,378 |  |  | 137,533 |  |  | 139,879 |  |  | 43,881 |  |  | 12,231 |  |  | 10,323 |  |  | 20,151 |  |  | 421,376 |
Special Mention | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Classified | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total multi-family real estate | 57,378 |  |  | 137,533 |  |  | 139,879 |  |  | 43,881 |  |  | 12,231 |  |  | 10,323 |  |  | 20,151 |  |  | 421,376 |
Gross charge-offs, YTD | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Residential 1-4 family real estate |  |  |  |  |  |  |  |  |  |
Pass | 363,410 |  |  | 400,483 |  |  | 317,515 |  |  | 186,459 |  |  | 94,567 |  |  | 260,102 |  |  | 3,247 |  |  | 1,625,783 |
Special Mention | 681 |  |  | 41 |  |  | 202 |  |  | 64 |  |  | 587 |  |  | 1,987 |  |  | — |  |  | 3,562 |
Classified | 1,848 |  |  | 50 |  |  | 474 |  |  | 741 |  |  | 472 |  |  | 6,539 |  |  | — |  |  | 10,124 |
Total residential 1-4 family real estate | 365,939 |  |  | 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 |  |  |  |  |  |  |  |  |  |
Pass | 2,830 |  |  | 1,136 |  |  | 1,141 |  |  | 223 |  |  | 499 |  |  | 1,233 |  |  | 319,199 |  |  | 326,261 |
Special Mention | 163 |  |  | — |  |  | 122 |  |  | — |  |  | — |  |  | — |  |  | 18 |  |  | 303 |
Classified | 255 |  |  | — |  |  | 146 |  |  | 91 |  |  | 112 |  |  | 10 |  |  | 7,890 |  |  | 8,504 |
Total home equity loans/lines of credit | 3,248 |  |  | 1,136 |  |  | 1,409 |  |  | 314 |  |  | 611 |  |  | 1,243 |  |  | 327,107 |  |  | 335,068 |
Gross charge-offs, YTD | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 309 |  |  | 309 |
Consumer loans |  |  |  |  |  |  |  |  |  |
Pass | 16,497 |  |  | 12,906 |  |  | 4,999 |  |  | 2,173 |  |  | 432 |  |  | 429 |  |  | 30,757 |  |  | 68,193 |
Special Mention | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Classified | 130 |  |  | 7 |  |  | 45 |  |  | — |  |  | 3 |  |  | 34 |  |  | 31 |  |  | 250 |
Total consumer loans | 16,627 |  |  | 12,913 |  |  | 5,044 |  |  | 2,173 |  |  | 435 |  |  | 463 |  |  | 30,788 |  |  | 68,443 |
Gross charge-offs, YTD | 34 |  |  | 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 |
Loan Modifications to Borrowers Experiencing Financial Difficulty Occasionally, the Company modifies loans to borrowers in financial distress as a part of our loss mitigation activities. Various types of modification may be offered including principal forgiveness, term extension, payment delays, or interest rate reductions. In some cases, the Company will modify a certain loan by providing multiple types of concessions. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession may be granted. For loans included in the “combination” columns below, multiple types of modifications have been made on the same loan within the current reporting period. The followings tables present the amortized cost basis at September 30, 2024 and September 30, 2023 of the loans modified during the three and nine months then ended for borrowers experiencing financial difficulty, by loan category and type of concession granted.
($ in thousands) |  |  |  |  |  | Payment Delay |  | Term Extension |  |  |  | Combination - Term Extension and Payment Delay |  | Combination - Interest Rate Reduction and Term Extension |  | Total |  | Percent of Total Class of Loans
As of and for the three months ended September 30, 2024 |  |  |  |  |  |  |  |  |  |
Construction, development & other land loans |  |  |  |  |  | $ | — |  |  | $ | 143 |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | 143 |  |  | 0.02 | %
Home equity loans/lines of credit |  |  |  |  |  | — |  |  | 96 |  |  |  |  | — |  |  | — |  |  | 96 |  |  | 0.03 | %
Total |  |  |  |  |  | $ | — |  |  | $ | 239 |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | 239 |  |  | — | %
As of and for the nine months ended September 30, 2024 |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  |  |  |  | $ | 114 |  |  | $ | 1 |  |  |  |  | $ | 878 |  |  | $ | 92 |  |  | $ | 1,085 |  |  | 0.13 | %
Construction, development & other land loans |  |  |  |  |  | — |  |  | 208 |  |  |  |  | — |  |  | — |  |  | 208 |  |  | 0.03 | %
Commercial real estate - non owner occupied |  |  |  |  |  | — |  |  | 107 |  |  |  |  | — |  |  | — |  |  | 107 |  |  | — | %
Residential 1-4 family real estate |  |  |  |  |  | — |  |  | 199 |  |  |  |  | — |  |  | — |  |  | 199 |  |  | 0.01 | %
Home equity loans/lines of credit |  |  |  |  |  | — |  |  | 417 |  |  |  |  | — |  |  | 173 |  |  | 590 |  |  | 0.18 | %
Total |  |  |  |  |  | $ | 114 |  |  | $ | 932 |  |  |  |  | $ | 878 |  |  | $ | 265 |  |  | $ | 2,189 |  |  | 0.03 | %
($ in thousands) |  |  |  |  |  | Payment Delay |  | Term Extension |  |  |  |  |  | Combination - Interest Rate Reduction and Term Extension |  | Total |  | Percent of Total Class of Loans
As of and for the three months ended September 30, 2023 |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  |  |  |  | $ | 1,142 |  |  | $ | 117 |  |  |  |  |  |  | $ | — |  |  | $ | 1,259 |  |  | 0.14 | %
Construction, development & other land loans |  |  |  |  |  | — |  |  | 594 |  |  |  |  |  |  | — |  |  | 594 |  |  | 0.06 | %
Commercial real estate - owner occupied |  |  |  |  |  | — |  |  | 4,023 |  |  |  |  |  |  | — |  |  | 4,023 |  |  | 0.32 | %
Commercial real estate - non owner occupied |  |  |  |  |  | — |  |  | 131 |  |  |  |  |  |  | — |  |  | 131 |  |  | 0.01 | %
Residential 1-4 family real estate |  |  |  |  |  | — |  |  | 245 |  |  |  |  |  |  | — |  |  | 245 |  |  | 0.02 | %
Home equity loans/lines of credit |  |  |  |  |  | 24 |  |  | 401 |  |  |  |  |  |  | 99 |  |  | 524 |  |  | 0.16 | %
Consumer loans |  |  |  |  |  | — |  |  | 9 |  |  |  |  |  |  | — |  |  | 9 |  |  | 0.01 | %
Total |  |  |  |  |  | $ | 1,166 |  |  | $ | 5,520 |  |  |  |  |  |  | $ | 99 |  |  | $ | 6,785 |  |  | 0.08 | %
As of and for the nine months ended September 30, 2023 |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  |  |  |  | $ | 2,589 |  |  | $ | 216 |  |  |  |  |  |  | $ | — |  |  | $ | 2,805 |  |  | 0.31 | %
Construction, development & other land loans |  |  |  |  |  | — |  |  | 594 |  |  |  |  |  |  | 10 |  |  | 604 |  |  | 0.06 | %
Commercial real estate - owner occupied |  |  |  |  |  | 185 |  |  | 4,302 |  |  |  |  |  |  | — |  |  | 4,487 |  |  | 0.36 | %
Commercial real estate - non owner occupied |  |  |  |  |  | — |  |  | 219 |  |  |  |  |  |  | — |  |  | 219 |  |  | 0.01 | %
Residential 1-4 family real estate |  |  |  |  |  | — |  |  | 750 |  |  |  |  |  |  | — |  |  | 750 |  |  | 0.05 | %
Home equity loans/lines of credit |  |  |  |  |  | 24 |  |  | 1,669 |  |  |  |  |  |  | 99 |  |  | 1,792 |  |  | 0.54 | %
Consumer loans |  |  |  |  |  | — |  |  | 66 |  |  |  |  |  |  | — |  |  | 66 |  |  | 0.10 | %
Total |  |  |  |  |  | $ | 2,798 |  |  | $ | 7,816 |  |  |  |  |  |  | $ | 109 |  |  | $ | 10,723 |  |  | 0.13 | %
For the three and nine months ended September 30, 2024 and September 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 nine months ended September 30, 2024 of the modifications made for borrowers experiencing financial difficulty:
|  | Financial Effect of Modification to Borrowers Experiencing Financial Difficulty
|  | Weighted Average Interest Rate Reduction |  |  |  | Weighted Average Payment Delay (in months) |  | Weighted Average Term Extension (in months)
For the three months ended September 30, 2024 |  |  |  |  |  |  |  |
Construction, development & other land loans |  | —% |  |  |  | 0 |  | 8
Home equity loans/lines of credit |  | —% |  |  |  | 0 |  | 40
For the nine months ended September 30, 2024 |  |  |  |  |  |  |  |
Commercial and industrial |  | 0.75% |  |  |  | 36 |  | 13
Construction, development & other land loans |  | —% |  |  |  | 0 |  | 6
Commercial real estate - non owner occupied |  | —% |  |  |  | 0 |  | 13
Residential 1-4 family real estate |  | —% |  |  |  | 0 |  | 103
Home equity loans/lines of credit |  | 2.13% |  |  |  | 0 |  | 65
The following table describes the financial effect for the three and nine months ended September 30, 2023 of the modifications made for borrowers experiencing financial difficulty:
|  | Financial Effect of Modification to Borrowers Experiencing Financial Difficulty
|  | Weighted Average Interest Rate Reduction |  |  |  | Weighted Average Payment Delay (in months) |  | Weighted Average Term Extension (in months)
For the three months ended September 30, 2023 |  |  |  |  |  |  |  |
Commercial and industrial |  | —% |  |  |  | 6 |  | 26
Construction, development & other land loans |  | —% |  |  |  | 0 |  | 8
Commercial real estate - owner occupied |  | —% |  |  |  | 0 |  | 32
Commercial real estate - non owner occupied |  | —% |  |  |  | 0 |  | 11
Residential 1-4 family real estate |  | —% |  |  |  | 0 |  | 23
Home equity loans/lines of credit |  | 2.61% |  |  |  | 24 |  | 84
Consumer loans |  | —% |  |  |  | 0 |  | 24
For the nine months ended September 30, 2023 |  |  |  |  |  |  |  |
Commercial and industrial |  | —% |  |  |  | 4 |  | 20
Construction, development & other land loans |  | 1.53% |  |  |  | 0 |  | 9
Commercial real estate - owner occupied |  | —% |  |  |  | 12 |  | 34
Commercial real estate - non owner occupied |  | —% |  |  |  | 0 |  | 13
Residential 1-4 family real estate |  | —% |  |  |  | 0 |  | 24
Home equity loans/lines of credit |  | 2.61% |  |  |  | 24 |  | 55
Consumer loans |  | —% |  |  |  | 0 |  | 9
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 September 30, 2024:
|  | Payment Status (Amortized Cost Basis)
($ in thousands) |  | Current |  | 30-59 Days Past Due |  | 60-89 Days Past Due |  | 90+ Days Past Due
Commercial and industrial |  | $ | 1,086 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Construction, development & other land loans |  | 250 |  |  | — |  |  | — |  |  | — |
Commercial real estate - non owner occupied |  | 107 |  |  | — |  |  | — |  |  | — |
Residential 1-4 family real estate |  | 134 |  |  | — |  |  | 65 |  |  | — |
Home equity loans/lines of credit |  | 1,278 |  |  | — |  |  | — |  |  | — |
|  | $ | 2,855 |  |  | $ | — |  |  | $ | 65 |  |  | $ | — |
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) |  | Current |  | 30-59 Days Past Due |  | 60-89 Days Past Due |  | 90+ Days Past Due
Commercial and industrial |  | $ | 2,841 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Construction, development & other land loans |  | 362 |  |  | — |  |  | — |  |  | — |
Commercial real estate - owner occupied |  | 4,455 |  |  | — |  |  | — |  |  | — |
Commercial real estate - non owner occupied |  | 206 |  |  | — |  |  | — |  |  | — |
Residential 1-4 family real estate |  | 656 |  |  | 79 |  |  | — |  |  | — |
Home equity loans/lines of credit |  | 3,114 |  |  | — |  |  | — |  |  | — |
Consumer loans |  | 6 |  |  | — |  |  | — |  |  | — |
|  | $ | 11,640 |  |  | $ | 79 |  |  | $ | — |  |  | $ | — |
None of the modifications made for borrowers experiencing financial difficulty during the three and nine months ended September 30, 2024 and September 30, 2023 are considered to have had a payment default. Upon the Company’s determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the ACL is adjusted by the same amount. Concentration of Credit Risk Most of the Company's business activity is with customers located within the markets where it has banking operations. Therefore, the Company’s exposure to credit risk is significantly affected by changes in the economy within its markets. Approximately 88% of the Company's loan portfolio is secured by real estate and is therefore susceptible to changes in real estate valuations. There have been no material changes to the primary loan markets (as identified by counties) from year end. Impact of Hurricane Helene Within the portions of Western North and South Carolina that were significantly impacted by Hurricane Helene, the Company identified borrowers with approximately $755 million of loans outstanding. The following is a summary of the categories of those loans outstanding as of September 30, 2024:
($ in thousands) |  | Balance
Commercial and industrial |  | $ | 10,481 |
Construction, development & other land loans |  | 29,429 |
Commercial real estate - owner occupied |  | 98,958 |
Commercial real estate - non owner occupied |  | 284,825 |
Multi-family real estate |  | 25,677 |
Residential 1-4 family real estate |  | 266,554 |
Home equity loans/lines of credit |  | 39,470 |
Consumer loans |  | — |
Total |  | $ | 755,394 |
Given that the storm impacted the area just prior to September 30, 2024 and recovery continues in many communities, the Company performed analyses to identify possible impacts from the storm and has reserved accordingly based upon the information available at this time. The Company applied increased reserve rates based upon severe economic factors to the approximately $755 million of loans in the most impacted path of Hurricane Helene. Additionally, the Company performed an initial evaluation of the largest commercial loans in that area and applied incremental reserves to those loans that were suspected of having higher potential property damage or economic impact from the storm. Due to the potential exposure from Hurricane Helene, the ACL on these impacted loans increased by $13.0 million, expanding the ACL as a percent of loans in the impacted geography from 1.29% to 3.01% as of September 30, 2024 and adding 16 basis points to the overall ACL as a percent of total loans, which was 1.53% as of September 30, 2024. Allowance for Unfunded Loan Commitments In addition to the ACL on loans, the Company maintains an allowance for lending-related commitments such as unfunded loan commitments and letters of credit. The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for lending-related commitments on off-balance sheet credit exposures is adjusted as a provision for unfunded commitments expense. The estimate includes consideration of the likelihood that funding will occur, which is based on a historical funding study derived from internal information, and an estimate of expected credit losses on commitments expected to be funded over its estimated life, which are the same loss rates that are used in computing the ACL on loans. The allowance for unfunded loan commitments of $9.3 million and $11.4 million at September 30, 2024 and December 31, 2023, respectively, were separately classified on the consolidated balance sheets within "Other liabilities." The following table presents the balance and activity in the allowance for unfunded loan commitments for the three and nine months ended September 30, 2024 and 2023:
|  | Three months ended September 30, |  | Nine months ended September 30,
($ in thousands) |  | 2024 |  | 2023 |  | 2024 |  | 2023
Beginning balance |  | $ | 9,860 |  |  | $ | 13,019 |  |  | $ | 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 |  | (583) |  |  | (1,200) |  |  | (2,092) |  |  | (3,408) |
Ending balance |  | $ | 9,277 |  |  | $ | 11,819 |  |  | $ | 9,277 |  |  | $ | 11,819 |
Allowance for Credit Losses - Securities Held to Maturity The ACL for securities held to maturity was insignificant at September 30, 2024 and December 31, 2023.

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