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Loans, Allowance for Credit Losses, and Asset Quality Information (Tables)
 9 Months Ended
Sep. 30, 2024
Receivables [Abstract]  
Summary of Major Categories of Total Loans Outstanding
The following is a summary of the major categories of total loans outstanding:
($ in thousands)September 30, 2024December 31, 2023
 AmountPercentageAmountPercentage
Commercial and industrial$847,284 11 %$905,862 11 %
Construction, development & other land loans760,949 9 %992,980 12 %
Commercial real estate - owner occupied1,226,050 15 %1,259,022 16 %
Commercial real estate - non owner occupied2,572,901 32 %2,528,060 31 %
Multi-family real estate460,565 6 %421,376 5 %
Residential 1-4 family real estate1,737,133 22 %1,639,469 20 %
Home equity loans/lines of credit331,072 4 %335,068 4 %
Consumer loans76,787 1 %68,443 1 %
Subtotal8,012,741 100 %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, 2024December 31, 2023
Guaranteed portions of SBA loans included in table above$36,131 $35,462 
Unguaranteed portions of SBA loans included in table above104,472 107,784 
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 $349,275 
Schedule of Nonperforming Assets and Nonaccrual Loans
The following table summarizes the NPAs for each date presented.
($ in thousands)September 30,
2024		December 31,
2023
Nonaccrual loans$34,125 $32,208 
Modifications to borrowers in financial distress10,262 11,719 
Total nonperforming loans44,387 43,927 
Foreclosed real estate1,519 862 
Total nonperforming assets$45,906 $44,789 
The following table is a summary of the Company’s nonaccrual loans by major categories as of September 30, 2024:
($ in thousands)Nonaccrual Loans with No AllowanceNonaccrual Loans with an AllowanceTotal Nonaccrual Loans
Commercial and industrial$— $10,310 $10,310 
Construction, development & other land loans— 17 17 
Commercial real estate - owner occupied879 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 AllowanceNonaccrual Loans with an AllowanceTotal Nonaccrual Loans
Commercial and industrial$944 $8,932 $9,876 
Construction, development & other land loans— 399 399 
Commercial real estate - owner occupied960 6,082 7,042 
Commercial real estate - non owner occupied6,121 1,082 7,203 
Residential 1-4 family real estate— 4,843 4,843 
Home equity loans/lines of credit534 2,169 2,703 
Consumer loans— 142 142 
Total$8,559 $23,649 $32,208 
Summary of Accrued Interest Receivables Written Off
The following table represents the accrued interest receivables written off by reversing interest income during each period indicated:
($ in thousands)Nine Months Ended September 30, 2024Nine Months Ended September 30, 2023
Commercial and industrial$360 $182 
Construction, development & other land loans— 2 
Commercial real estate - owner occupied238 105 
Commercial real estate - non owner occupied55 8 
Residential 1-4 family real estate45 29 
Home equity loans/lines of credit26 39 
Consumer loans1 2 
Total$725 $367 
Schedule of Analysis of Payment Status
The following table presents an analysis of the payment status of the Company’s loans as of September 30, 2024:
($ 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 loans759,957 910 65 17 760,949 
Commercial real estate - owner occupied1,215,472 279 209 10,090 1,226,050 
Commercial real estate - non owner occupied2,566,325 287 222 6,067 2,572,901 
Multi-family real estate460,419 146 — — 460,565 
Residential 1-4 family real estate1,725,659 1,794 4,102 5,578 1,737,133 
Home equity loans/lines of credit327,772 1,278 97 1,925 331,072 
Consumer loans76,095 322 232 138 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 loans992,084 241 256 399 992,980 
Commercial real estate - owner occupied1,250,670 906 404 7,042 1,259,022 
Commercial real estate - non owner occupied2,520,496 361 — 7,203 2,528,060 
Multi-family real estate421,376 — — — 421,376 
Residential 1-4 family real estate1,612,357 18,868 3,401 4,843 1,639,469 
Home equity loans/lines of credit331,413 603 349 2,703 335,068 
Consumer loans67,900 270 131 142 68,443 
Total$8,088,299 $24,975 $4,798 $32,208 8,150,280 
Unamortized net deferred loan costs/(fees)(178)
Total loans$8,150,102 
Analysis of Collateral-Dependent Loans
The following table presents an analysis of collateral dependent loans of the Company as of September 30, 2024:
($ in thousands)Residential PropertyBusiness AssetsCommercial PropertyTotal 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 PropertyBusiness AssetsCommercial PropertyTotal Collateral-Dependent Loans
Commercial and industrial$— $2,385 $— $2,385 
Commercial real estate - owner occupied— — 1,142 1,142 
Commercial real estate - non owner occupied— — 6,121 6,121 
Home equity loans/lines of credit534 — — 534 
Total$534 $2,385 $7,263 $10,182 
Schedule of Allowance for Loan Losses
The following tables presents the activity in the ACL on loans for each of the periods indicated to include Purchase Credit Deterioration (“PCD”) activity in applicable periods. Fluctuations in the ACL each period are based on loan mix and growth, changes in the levels of nonperforming loans, economic forecasts impacting loss drivers, other assumptions and inputs to the current expected credit loss ("CECL") model, and as occurred in 2023, adjustments for acquired loan portfolios. The change to the level of ACL during the nine months ended September 30, 2024 was determined based primarily on updated economic forecasts, which are a key assumption in the CECL model and which indicated improvement in certain economic forecasts along with reductions in loan balances during the period, partially offset by a continued reduction of the commercial real estate pricing index. Other than the impact from Hurricane Helene, there was little change to the ACL for the quarter or year to date.
($ in thousands)Beginning balanceCharge-offsRecoveriesProvisions / (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 loans9,996 — 35 1,394 11,425 
Commercial real estate - owner occupied17,859 (21)4 657 18,499 
Commercial real estate - non owner occupied25,876 — 3 2,754 28,633 
Multi-family real estate5,129 — — 161 5,290 
Residential 1-4 family real estate24,855 — 28 9,183 34,066 
Home equity loans/lines of credit3,177 — 232 165 3,574 
Consumer loans3,329 (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 loans13,940 (79)182 (2,618)11,425 
Commercial real estate - owner occupied18,218 (109)12 378 18,499 
Commercial real estate - non owner occupied24,916 (158)46 3,829 28,633 
Multi-family real estate3,825 — — 1,465 5,290 
Residential 1-4 family real estate21,396 (6)255 12,421 34,066 
Home equity loans/lines of credit3,339 (2)254 (17)3,574 
Consumer loans2,992 (1,130)197 1,029 3,088 
Total$109,853 $(7,460)$2,292 $18,033 $122,718 
($ in thousands)Beginning balanceInitial ACL for acquired PCD loansCharge-offsRecoveriesProvisions / (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 loans18,477 — (120)54 (4,761)13,650 
Commercial real estate - owner occupied16,381 — (24)34 1,873 18,264 
Commercial real estate - non owner occupied26,274 — — 302 (1,240)25,336 
Multi-family real estate3,946 — — 3 (481)3,468 
Residential 1-4 family real estate14,305 — — 50 4,374 18,729 
Home equity loans/lines of credit3,717 — — 11 (431)3,297 
Consumer loans2,688 — (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 loans15,128 49 (120)277 (1,684)13,650 
Commercial real estate - owner occupied14,972 191 (24)104 3,021 18,264 
Commercial real estate - non owner occupied22,780 51 (235)734 2,006 25,336 
Multi-family real estate2,957 — — 10 501 3,468 
Residential 1-4 family real estate11,354 113 — 275 6,987 18,729 
Home equity loans/lines of credit3,158 8 (2)85 48 3,297 
Consumer loans2,900 1 (833)144 798 3,010 
Total$90,967 $5,610 $(7,575)$2,845 $16,351 $108,198 
The following is a summary of the categories of those loans outstanding as of September 30, 2024:
($ in thousands)Balance
Commercial and industrial$10,481 
Construction, development & other land loans29,429 
Commercial real estate - owner occupied98,958 
Commercial real estate - non owner occupied284,825 
Multi-family real estate25,677 
Residential 1-4 family real estate266,554 
Home equity loans/lines of credit39,470 
Consumer loans— 
Total$755,394 
The following table presents the balance and activity in the allowance for unfunded loan commitments for the three and nine months ended September 30, 2024 and 2023:
Three months ended September 30,Nine months ended September 30,
($ in thousands)2024202320242023
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 $11,819 
Schedule of Recorded Investment in Loans by Credit Quality Indicators
In the tables that follow, substantially all of the "Classified" loans have grades of 7 or Fail, with those categories having similar levels of risk.
The tables below present the Company’s recorded investment in loans by credit quality indicators by year of origination or renewal as of the periods indicated. Acquired loans are presented in the year originated, not in the year of acquisition.
Term Loans by Year of Origination
($ in thousands)20242023202220212020PriorRevolvingTotal
As of September 30, 2024
Commercial and industrial
Pass$91,552 $88,620 $128,666 $88,256 $61,355 $73,296 $299,188 $830,933 
Special Mention944 361 174 207 347 794 1,890 4,717 
Classified160 1,817 3,440 486 1,009 4,181 541 11,634 
Total commercial and industrial92,656 90,798 132,280 88,949 62,711 78,271 301,619 847,284 
Gross charge-offs, YTD126 460 800 195 134 752 3,509 5,976 
Construction, development & other land loans
Pass321,727 192,331 114,704 32,788 14,857 9,801 70,195 756,403 
Special Mention2,497 612 164 9 — 265 13 3,560 
Classified910 — — — 67 9 — 986 
Total construction, development & other land loans325,134 192,943 114,868 32,797 14,924 10,075 70,208 760,949 
Gross charge-offs, YTD— 79 — — — — — 79 
Commercial real estate - owner occupied
Pass120,529 229,996 272,334 261,248 158,253 127,257 16,711 1,186,328 
Special Mention13,218 1,940 3,515 187 147 7,654 — 26,661 
Classified957 179 1,977 1,268 1,572 7,108 — 13,061 
Total commercial real estate - owner occupied134,704 232,115 277,826 262,703 159,972 142,019 16,711 1,226,050 
Gross charge-offs, YTD— 25 — 19 — 65 — 109 
Commercial real estate - non owner occupied
Pass345,170 435,235 683,731 638,235 263,275 149,114 29,739 2,544,499 
Special Mention14,968 268 189 13 337 5,890 — 21,665 
Classified234 401 570 11 4,233 1,288 — 6,737 
Total commercial real estate - non owner occupied360,372 435,904 684,490 638,259 267,845 156,292 29,739 2,572,901 
Gross charge-offs, YTD— — — — — 158 — 158 
Multi-family real estate
Pass55,518 41,990 115,324 161,142 41,642 14,628 29,379 459,623 
Special Mention— 146 — — — 796 — 942 
Classified— — — — — — — — 
Total multi-family real estate55,518 42,136 115,324 161,142 41,642 15,424 29,379 460,565 
Gross charge-offs, YTD— — — — — — — — 
Residential 1-4 family real estate
Pass181,377 333,878 416,275 301,453 176,169 311,209 3,298 1,723,659 
Special Mention215 — 11 139 62 910 — 1,337 
Classified1,892 245 2,257 549 1,198 5,996 — 12,137 
Total residential 1-4 family real estate183,484 334,123 418,543 302,141 177,429 318,115 3,298 1,737,133 
Gross charge-offs, YTD— — — — — 6 — 6 
Home equity loans/lines of credit
Pass2,128 2,679 661 377 175 943 317,182 324,145 
Special Mention121 152 — — — — 16 289 
Classified175 54 — 137 89 8 6,175 6,638 
Total home equity loans/lines of credit2,424 2,885 661 514 264 951 323,373 331,072 
Gross charge-offs, YTD— — — — — — 2 2 
Consumer loans
Pass13,328 11,137 8,076 2,757 1,252 373 39,517 76,440 
Special Mention— — — — — — 23 23 
Classified6 72 46 21 — 28 151 324 
Total consumer loans13,334 11,209 8,122 2,778 1,252 401 39,691 76,787 
Gross charge-offs, YTD6 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)20232022202120202019PriorRevolvingTotal
As of December 31, 2023
Commercial and industrial
Pass$136,735 $161,131 $111,069 $75,312 $38,495 $60,626 $302,684 $886,052 
Special Mention2,832 2,547 167 185 448 672 1,135 7,986 
Classified1,626 1,152 720 1,389 1,647 4,487 803 11,824 
Total commercial and industrial141,193 164,830 111,956 76,886 40,590 65,785 304,622 905,862 
Gross charge-offs, YTD171 1,036 713 537 821 1,547 3,533 8,358 
Construction, development & other land loans
Pass563,998 231,450 90,374 16,662 11,598 5,816 70,852 990,750 
Special Mention489 273 59 — 2 4 19 846 
Classified657 708 — — 8 11 — 1,384 
Total construction, development & other land loans565,144 232,431 90,433 16,662 11,608 5,831 70,871 992,980 
Gross charge-offs, YTD— — — — — 120 — 120 
Commercial real estate - owner occupied
Pass210,449 323,852 299,135 196,343 92,452 86,784 23,198 1,232,213 
Special Mention338 2,533 271 817 5,755 2,253 — 11,967 
Classified4,456 1,505 1,721 895 2,288 3,904 73 14,842 
Total commercial real estate - owner occupied215,243 327,890 301,127 198,055 100,495 92,941 23,271 1,259,022 
Gross charge-offs, YTD— — 49 — — 92 3 144 
Commercial real estate - non owner occupied
Pass509,596 748,854 722,472 287,235 119,515 84,690 29,001 2,501,363 
Special Mention11,353 199 36 393 1,183 5,942 342 19,448 
Classified871 32 14 4,214 634 1,484 — 7,249 
Total commercial real estate - non owner occupied521,820 749,085 722,522 291,842 121,332 92,116 29,343 2,528,060 
Gross charge-offs, YTD— — 235 — — — — 235 
Multi-family real estate
Pass57,378 137,533 139,879 43,881 12,231 10,323 20,151 421,376 
Special Mention— — — — — — — — 
Classified— — — — — — — — 
Total multi-family real estate57,378 137,533 139,879 43,881 12,231 10,323 20,151 421,376 
Gross charge-offs, YTD— — — — — — — — 
Residential 1-4 family real estate
Pass363,410 400,483 317,515 186,459 94,567 260,102 3,247 1,625,783 
Special Mention681 41 202 64 587 1,987 — 3,562 
Classified1,848 50 474 741 472 6,539 — 10,124 
Total residential 1-4 family real estate365,939 400,574 318,191 187,264 95,626 268,628 3,247 1,639,469 
Gross charge-offs, YTD— — — — — 4 — 4 
Home equity loans/lines of credit
Pass2,830 1,136 1,141 223 499 1,233 319,199 326,261 
Special Mention163 — 122 — — — 18 303 
Classified255 — 146 91 112 10 7,890 8,504 
Total home equity loans/lines of credit3,248 1,136 1,409 314 611 1,243 327,107 335,068 
Gross charge-offs, YTD— — — — — — 309 309 
Consumer loans
Pass16,497 12,906 4,999 2,173 432 429 30,757 68,193 
Special Mention— — — — — — — — 
Classified130 7 45 — 3 34 31 250 
Total consumer loans16,627 12,913 5,044 2,173 435 463 30,788 68,443 
Gross charge-offs, YTD34 79 73 23 — 1 795 1,005 
Total loans$1,886,592 $2,026,392 $1,690,561 $817,077 $382,928 $537,330 $809,400 8,150,280 
Unamortized net deferred loan costs/(fees)(178)
Total loans, net of deferred loan costs/(fees)$8,150,102 
Total gross charge-offs, year to date$205 $1,115 $1,070 $560 $821 $1,764 $4,640 $10,175 
Schedule of Information Related to Loans Modified in a Troubled Debt Restructuring
The followings tables present the amortized cost basis at 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 DelayTerm ExtensionCombination - Term Extension and Payment DelayCombination - Interest Rate Reduction and Term ExtensionTotalPercent of Total Class of Loans
As of and for the three months ended 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 DelayTerm ExtensionCombination - Interest Rate Reduction and Term ExtensionTotalPercent 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 credit24 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 occupied185 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 credit24 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 ReductionWeighted Average Payment Delay
(in months)		Weighted Average Term Extension
(in months)
For the three months ended September 30, 2024
Construction, development & other land loans—%08
Home equity loans/lines of credit—%040
For the nine months ended September 30, 2024
Commercial and industrial0.75%3613
Construction, development & other land loans—%06
Commercial real estate - non owner occupied—%013
Residential 1-4 family real estate—%0103
Home equity loans/lines of credit2.13%065
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 ReductionWeighted Average Payment Delay
(in months)		Weighted Average Term Extension
(in months)
For the three months ended September 30, 2023
Commercial and industrial—%626
Construction, development & other land loans—%08
Commercial real estate - owner occupied—%032
Commercial real estate - non owner occupied—%011
Residential 1-4 family real estate—%023
Home equity loans/lines of credit2.61%2484
Consumer loans—%024
For the nine months ended September 30, 2023
Commercial and industrial—%420
Construction, development & other land loans1.53%09
Commercial real estate - owner occupied—%1234
Commercial real estate - non owner occupied—%013
Residential 1-4 family real estate—%024
Home equity loans/lines of credit2.61%2455
Consumer loans—%09
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)Current30-59 Days Past Due60-89 Days Past Due90+ Days Past Due
Commercial and industrial$1,086 $— $— $— 
Construction, development & other land loans250 — — — 
Commercial real estate - non owner occupied107 — — — 
Residential 1-4 family real estate134 — 65 — 
Home equity loans/lines of credit1,278 — — — 
$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)Current30-59 Days Past Due60-89 Days Past Due90+ Days Past Due
Commercial and industrial$2,841 $— $— $— 
Construction, development & other land loans362 — — — 
Commercial real estate - owner occupied4,455 — — — 
Commercial real estate - non owner occupied206 — — — 
Residential 1-4 family real estate656 79 — — 
Home equity loans/lines of credit3,114 — — — 
Consumer loans6 — — — 
$11,640 $79 $— $—