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Loans, Allowance for Credit Losses, and Asset Quality Information | 12 Months Ended
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Dec. 31, 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:
|  | December 31, 2024 |  | December 31, 2023
($ in thousands) |  | Amount |  | Percentage |  | Amount |  | Percentage
Commercial and industrial |  | $ | 919,690 |  |  | 11 | % |  | $ | 905,862 |  |  | 11 | %
Construction, development & other land loans |  | 647,167 |  |  | 8 | % |  | 992,980 |  |  | 12 | %
Commercial real estate - owner occupied |  | 1,248,812 |  |  | 16 | % |  | 1,259,022 |  |  | 16 | %
Commercial real estate - non owner occupied |  | 2,625,554 |  |  | 33 | % |  | 2,528,060 |  |  | 31 | %
Multi-family real estate |  | 506,407 |  |  | 6 | % |  | 421,376 |  |  | 5 | %
Residential 1-4 family real estate |  | 1,729,322 |  |  | 21 | % |  | 1,639,469 |  |  | 20 | %
Home equity loans/lines of credit |  | 345,883 |  |  | 4 | % |  | 335,068 |  |  | 4 | %
Consumer loans |  | 70,653 |  |  | 1 | % |  | 68,443 |  |  | 1 | %
Subtotal |  | 8,093,488 |  |  | 100 | % |  | 8,150,280 |  |  | 100 | %
Unamortized net deferred loan costs/(fees) |  | 1,188 |  |  |  |  | (178) |  |  |
Total loans |  | $ | 8,094,676 |  |  |  |  | $ | 8,150,102 |  |  |
Also included in the table above are SBA loans, generally originated under the SBA 7A loan program, with additional information on these loans presented in the table below.
($ in thousands) |  | December 31, 2024 |  | December 31, 2023
Guaranteed portions of SBA Loans included in table above |  | $ | 34,095 |  |  | $ | 35,462 |
Unguaranteed portions of SBA Loans included in table above |  | 101,356 |  |  | 107,784 |
Total SBA loans included in the table above |  | $ | 135,451 |  |  | $ | 143,246 |
Sold portions of SBA loans with servicing retained - not included in table above |  | $ | 330,482 |  |  | $ | 349,275 |
At December 31, 2024 and December 31, 2023, there were remaining unaccreted discounts on the retained portion of sold SBA loans amounting to $2.9 million and $3.5 million respectively. At December 31, 2024 and December 31, 2023, loans in the amount of $6.7 billion and $6.5 billion, respectively, were pledged as collateral to the FRB and the FHLB for borrowing capacity. Refer to Note 9 for further discussion. At December 31, 2024 and 2023, total loans included loans to executive officers and directors of the Company, totaling approximately $62.9 million and $63.7 million, respectively. There was one new loan and advances on existing loans totaling approximately $1.2 million for the year ended December 31, 2024 and repayments amounted to $2.0 million for that period. Available credit on related party loans totaled $1.0 million and $2.7 million at December 31, 2024 and December 31, 2023, respectively. As of December 31, 2024 and 2023, unamortized discounts on all acquired loans totaled $15.1 million and $24.0 million, respectively. Loan discounts are generally amortized as yield adjustments over the respective lives of the loans, so long as the loans perform. There was no impairment of acquired loans during the years ended December 31, 2024 and December 31, 2023 that would require acceleration of amortization or charge off of unamortized discount. Nonperforming assets ("NPAs") are defined as nonaccrual loans, FDMs, loans past due 90 or more days and still accruing interest, foreclosed real estate, and prior to the adoption of ASU 2022-02 on January 1, 2023, TDRs. The following table summarizes the NPAs for each date presented.
($ in thousands) |  | December 31, 2024 |  | December 31, 2023
Nonperforming assets |  |  |  |
Nonaccrual loans |  | $ | 31,779 |  |  | $ | 32,208 |
Financial Difficulty Modifications |  | 10,173 |  |  | 11,719 |
Accruing loans > 90 days past due |  | — |  |  | — |
Total nonperforming loans |  | 41,952 |  |  | 43,927 |
Foreclosed properties |  | 4,965 |  |  | 862 |
Total nonperforming assets |  | $ | 46,917 |  |  | $ | 44,789 |
At December 31, 2024 and 2023, the Company had $1.2 million and $1.0 million, respectively, in residential mortgage loans in process of foreclosure. At December 31, 2024 and December 31, 2023, there were, respectively, two loans and one loan with commitments to lend $0.4 million and an $0.2 million of additional funds to a borrower whose loans were nonperforming. The following table is a summary of the Company’s nonaccrual loans by major categories as of December 31, 2024.
($ in thousands) |  | Nonaccrual Loans with No Allowance |  | Nonaccrual Loans with an Allowance |  | Total Nonaccrual Loans
Commercial and industrial |  | $ | — |  |  | $ | 9,804 |  |  | $ | 9,804 |
Construction, development & other land loans |  | — |  |  | 90 |  |  | 90 |
Commercial real estate - owner occupied |  | 879 |  |  | 8,488 |  |  | 9,367 |
Commercial real estate - non owner occupied |  | — |  |  | 887 |  |  | 887 |
Residential 1-4 family real estate |  | — |  |  | 9,487 |  |  | 9,487 |
Home equity loans/lines of credit |  | — |  |  | 1,795 |  |  | 1,795 |
Consumer loans |  | — |  |  | 349 |  |  | 349 |
Total |  | $ | 879 |  |  | $ | 30,900 |  |  | $ | 31,779 |
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) |  | Year Ended December 31, 2024 |  | Year Ended December 31, 2023
Commercial and industrial |  | $ | 513 |  |  | $ | 225 |
Construction, development & other land loans |  | 2 |  |  | 10 |
Commercial real estate - owner occupied |  | 372 |  |  | 124 |
Commercial real estate - non owner occupied |  | 55 |  |  | 186 |
Residential 1-4 family real estate |  | 73 |  |  | 38 |
Home equity loans/lines of credit |  | 31 |  |  | 57 |
Consumer loans |  | 2 |  |  | 2 |
Total |  | $ | 1,048 |  |  | $ | 642 |
The following table presents an analysis of the payment status of the Company’s loans as of December 31, 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 |  | $ | 906,903 |  |  | $ | 2,442 |  |  | $ | 541 |  |  |  |  | $ | 9,804 |  |  | $ | 919,690 |
Construction, development & other land loans |  | 647,077 |  |  | — |  |  | — |  |  |  |  | 90 |  |  | 647,167 |
Commercial real estate - owner occupied |  | 1,236,396 |  |  | 2,073 |  |  | 976 |  |  |  |  | 9,367 |  |  | 1,248,812 |
Commercial real estate - non owner occupied |  | 2,614,843 |  |  | 9,678 |  |  | 146 |  |  |  |  | 887 |  |  | 2,625,554 |
Multi-family real estate |  | 506,407 |  |  | — |  |  | — |  |  |  |  | — |  |  | 506,407 |
Residential 1-4 family real estate |  | 1,699,800 |  |  | 12,973 |  |  | 7,062 |  |  |  |  | 9,487 |  |  | 1,729,322 |
Home equity loans/lines of credit |  | 342,551 |  |  | 1,118 |  |  | 419 |  |  |  |  | 1,795 |  |  | 345,883 |
Consumer loans |  | 69,775 |  |  | 317 |  |  | 212 |  |  |  |  | 349 |  |  | 70,653 |
Total |  | $ | 8,023,752 |  |  | $ | 28,601 |  |  | $ | 9,356 |  |  |  |  | $ | 31,779 |  |  | 8,093,488 |
Unamortized net deferred loan fees |  |  |  |  |  |  |  |  |  | 1,188 |
Total loans |  |  |  |  |  |  |  |  |  |  |  | $ | 8,094,676 |
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 (fees) costs |  |  |  |  |  |  |  |  |  | (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 $500,000 in size that management of the Company designates as having higher risk. These loans do not share common risk characteristics and are not included within the collectively evaluated loans for determining the ACL. The following table presents an analysis of collateral dependent loans of the Company as of December 31, 2024.
($ in thousands) |  |  |  |  |  |  |  | Commercial Property |  | Total Collateral-Dependent Loans
Commercial real estate - owner occupied |  |  |  |  |  |  |  | $ | 879 |  |  | $ | 879 |
Total |  |  |  |  |  |  |  | $ | 879 |  |  | $ | 879 |
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 |
Under CECL, for collateral dependent loans, the Company has adopted the practical expedient to measure the ACL based on the fair value of collateral. The ACL is calculated on an individual loan basis based on the shortfall between the fair value of the loan's collateral, which is adjusted for liquidation costs/discounts, and amortized cost. If the fair value of the collateral exceeds the amortized cost, no allowance is required. The Company's policy is to obtain third-party appraisals on any significant pieces of collateral. For loans secured by real estate, the Company's policy is to write nonaccrual loans down to 90% of the appraised value, which considers estimated selling costs. For real estate collateral, the Company may discount the collateral values due to factors including market trends, collateral condition, or near-term sales. For loans secured by non-real estate collateral, the Company generally writes nonaccrual loans down to provide for selling costs and liquidity discounts that are usually incurred when disposing of non-real estate collateral. For reviewed loans that are not on nonaccrual basis, the Company assigns a specific allowance based on the parameters noted above. 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 CECL model, and as occurred in 2024, adjustments for acquired loan portfolios. Much of the change to the level of ACL during the year ended December 31, 2024 is attributed to the potential exposure from Hurricane Helene. The balance of the change was a result of loan growth during the year and updated prepayment speed estimates in the CECL model, which have slowed with market rate increases, thus requiring additional allowance for the estimated longer life of loans. The following tables present the activity in the ACL on loans for each of the periods indicated.
($ in thousands) |  | Beginning balance |  |  |  |  |  | Charge-offs |  | Recoveries |  | Provisions/(Reversals) |  | Ending balance
As of and for the year ended December 31, 2024 |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 21,227 |  |  |  |  |  |  | $ | (7,278) |  |  | $ | 2,363 |  |  | $ | 3,162 |  |  | $ | 19,474 |
Construction, development & other land loans |  | 13,940 |  |  |  |  |  |  | (79) |  |  | 229 |  |  | (4,776) |  |  | 9,314 |
Commercial real estate - owner occupied |  | 18,218 |  |  |  |  |  |  | (223) |  |  | 36 |  |  | 1,349 |  |  | 19,380 |
Commercial real estate - non owner occupied |  | 24,916 |  |  |  |  |  |  | (462) |  |  | 107 |  |  | 3,207 |  |  | 27,768 |
Multi-family real estate |  | 3,825 |  |  |  |  |  |  | — |  |  | — |  |  | 1,651 |  |  | 5,476 |
Residential 1-4 family real estate |  | 21,396 |  |  |  |  |  |  | (18) |  |  | 310 |  |  | 11,864 |  |  | 33,552 |
Home equity loans/lines of credit |  | 3,339 |  |  |  |  |  |  | (2) |  |  | 272 |  |  | 502 |  |  | 4,111 |
Consumer loans |  | 2,992 |  |  |  |  |  |  | (1,525) |  |  | 238 |  |  | 1,792 |  |  | 3,497 |
|  | $ | 109,853 |  |  |  |  |  |  | $ | (9,587) |  |  | $ | 3,555 |  |  | $ | 18,751 |  |  | $ | 122,572 |
($ in thousands) |  | Beginning balance |  | Initial ACL for acquired PCD loans |  |  |  | Charge-offs |  | Recoveries |  | Provisions/(Reversals) |  | Ending balance
As of and for the year ended December 31, 2023 |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 17,718 |  |  | $ | 5,197 |  |  |  |  | $ | (8,358) |  |  | $ | 1,393 |  |  | $ | 5,277 |  |  | $ | 21,227 |
Construction, development & other land loans |  | 15,128 |  |  | 49 |  |  |  |  | (120) |  |  | 370 |  |  | (1,487) |  |  | 13,940 |
Commercial real estate - owner occupied |  | 14,972 |  |  | 191 |  |  |  |  | (144) |  |  | 465 |  |  | 2,734 |  |  | 18,218 |
Commercial real estate - non owner occupied |  | 22,780 |  |  | 51 |  |  |  |  | (235) |  |  | 737 |  |  | 1,583 |  |  | 24,916 |
Multi-family real estate |  | 2,957 |  |  | — |  |  |  |  | — |  |  | 13 |  |  | 855 |  |  | 3,825 |
Residential 1-4 family real estate |  | 11,354 |  |  | 113 |  |  |  |  | (4) |  |  | 377 |  |  | 9,556 |  |  | 21,396 |
Home equity loans/lines of credit |  | 3,158 |  |  | 8 |  |  |  |  | (309) |  |  | 98 |  |  | 384 |  |  | 3,339 |
Consumer loans |  | 2,900 |  |  | 1 |  |  |  |  | (1,005) |  |  | 248 |  |  | 848 |  |  | 2,992 |
|  | $ | 90,967 |  |  | $ | 5,610 |  |  |  |  | $ | (10,175) |  |  | $ | 3,701 |  |  | $ | 19,750 |  |  | $ | 109,853 |
($ in thousands) |  | Beginning balance |  |  |  | Charge-offs |  | Recoveries |  | Provisions/(Reversals) |  | Ending balance
As of and for the year ended December 31, 2022 |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 16,249 |  |  |  |  |  |  | $ | (2,519) |  |  | $ | 756 |  |  | $ | 3,232 |  |  | $ | 17,718 |
Construction, development & other land loans |  | 16,519 |  |  |  |  |  |  | — |  |  | 480 |  |  | (1,871) |  |  | 15,128 |
Commercial real estate - owner occupied |  | 12,317 |  |  |  |  |  |  | (214) |  |  | 691 |  |  | 2,178 |  |  | 14,972 |
Commercial real estate - non owner occupied |  | 16,789 |  |  |  |  |  |  | (849) |  |  | 1,281 |  |  | 5,559 |  |  | 22,780 |
Multi-family real estate |  | 1,236 |  |  |  |  |  |  | — |  |  | 11 |  |  | 1,710 |  |  | 2,957 |
Residential 1-4 family real estate |  | 8,686 |  |  |  |  |  |  | — |  |  | 17 |  |  | 2,651 |  |  | 11,354 |
Home equity loans/lines of credit |  | 4,337 |  |  |  |  |  |  | (43) |  |  | 600 |  |  | (1,736) |  |  | 3,158 |
Consumer loans |  | 2,656 |  |  |  |  |  |  | (840) |  |  | 207 |  |  | 877 |  |  | 2,900 |
|  | $ | 78,789 |  |  |  |  |  |  | $ | (4,465) |  |  | $ | 4,043 |  |  | $ | 12,600 |  |  | $ | 90,967 |
Credit Quality Indicators The Company tracks credit quality based on its internal risk ratings. Upon origination, a loan is assigned an initial risk grade, which is generally based on several factors such as the borrower’s credit score, the loan-to-value ratio, the debt-to-income ratio, etc. Loans that are risk-graded as substandard during the origination process are declined. After loans are initially graded, they are monitored regularly for credit quality based on many factors, such as payment history, the borrower’s financial status, and changes in collateral value. Loans can be downgraded or upgraded depending on management’s evaluation of these factors. Internal risk-grading policies are consistent throughout each loan type. The following describes the Company’s internal risk grades in ascending order of likelihood of loss:
|  | Risk Grade |  | Description
Pass: |  |
|  | 1 |  | Loans with virtually no risk, including cash secured loans.
|  | 2 |  | Loans with documented significant overall financial strength. These loans have minimum chance of loss due to the presence of multiple sources of repayment – each clearly sufficient to satisfy the obligation.
|  | 3 |  | Loans with documented satisfactory overall financial strength. These loans have a low loss potential due to presence of at least two clearly identified sources of repayment – each of which is sufficient to satisfy the obligation under the present circumstances.
|  | 4 |  | Loans to borrowers with acceptable financial condition. These loans could have signs of minor operational weaknesses, lack of adequate financial information, or loans supported by collateral with questionable value or marketability.
|  | 5 |  | Loans that represent above average risk due to minor weaknesses and warrant closer scrutiny by management. Collateral is generally available and felt to provide reasonable coverage with realizable liquidation values in normal circumstances. Repayment performance is satisfactory.
|  | P (Pass) |  | Consumer loans that are of satisfactory credit quality with borrowers who exhibit good personal credit history, average personal financial strength and moderate debt levels. These loans generally conform to Bank policy, but may include approved mitigated exceptions to the guidelines.
Special Mention: |  |
|  | 6 |  | Existing loans with defined weaknesses in primary source of repayment that, if not corrected, could cause a loss to the Company.
Classified: |  |
|  | 7 |  | An existing loan inadequately protected by the current sound net worth and paying capacity of the obligor or the collateral pledged, if any. These loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt.
|  | 8 |  | Loans that have a well-defined weakness that make the collection or liquidation in full highly questionable and improbable. Loss appears imminent, but the exact amount and timing is uncertain.
|  | 9 |  | Loans that are considered uncollectible and are in the process of being charged-off. This grade is a temporary grade assigned for administrative purposes until the charge-off is completed.
|  | F (Fail) |  | Consumer loans with a well-defined weakness, such as exceptions of any kind with no mitigating factors, history of paying outside the terms of the note, insufficient income to support the current level of debt, etc.
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. 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. As presented in the tables that follow, as of December 31, 2024, the Company had $37.1 million in loans graded Special Mention and $65.8 million in loans graded Classified, which includes all nonaccrual loans at that date. As of December 31, 2023, the Company had $44.1 million in loans graded Special Mention and $54.2 million in loans graded Classified, which includes all nonaccrual loans at that date.
| Term Loans by Year of Origination |  |  |  |
($ in thousands) | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior |  | Revolving |  | Total
As of December 31, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial
Pass | $ | 114,786 |  |  | $ | 81,851 |  |  | $ | 120,769 |  |  | $ | 82,810 |  |  | $ | 59,218 |  |  | $ | 70,986 |  |  | $ | 373,850 |  |  | $ | 904,270 |
Special Mention | 1,076 |  |  | 26 |  |  | 190 |  |  | 36 |  |  | 259 |  |  | 804 |  |  | 1,825 |  |  | 4,216 |
Classified | 266 |  |  | 2,496 |  |  | 3,254 |  |  | 713 |  |  | 1,199 |  |  | 2,634 |  |  | 642 |  |  | 11,204 |
Total commercial and industrial | 116,128 |  |  | 84,373 |  |  | 124,213 |  |  | 83,559 |  |  | 60,676 |  |  | 74,424 |  |  | 376,317 |  |  | 919,690 |
Gross charge-offs, YTD | 306 |  |  | 669 |  |  | 849 |  |  | 318 |  |  | 137 |  |  | 929 |  |  | 4,070 |  |  | 7,278 |
Construction, development & other land loans
Pass | 355,734 |  |  | 124,323 |  |  | 60,305 |  |  | 29,823 |  |  | 12,727 |  |  | 5,276 |  |  | 57,177 |  |  | 645,365 |
Special Mention | — |  |  | 605 |  |  | 77 |  |  | 8 |  |  | — |  |  | 2 |  |  | 11 |  |  | 703 |
Classified | 227 |  |  | 449 |  |  | 80 |  |  | — |  |  | 67 |  |  | 276 |  |  | — |  |  | 1,099 |
Total construction, development & other land loans | 355,961 |  |  | 125,377 |  |  | 60,462 |  |  | 29,831 |  |  | 12,794 |  |  | 5,554 |  |  | 57,188 |  |  | 647,167 |
Gross charge-offs, YTD | — |  |  | 79 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 79 |
Commercial real estate - owner occupied
Pass | 194,193 |  |  | 222,718 |  |  | 261,634 |  |  | 252,929 |  |  | 153,634 |  |  | 109,559 |  |  | 15,772 |  |  | 1,210,439 |
Special Mention | 9,927 |  |  | 1,869 |  |  | 2,731 |  |  | 184 |  |  | 147 |  |  | 7,007 |  |  | — |  |  | 21,865 |
Classified | 4,506 |  |  | 235 |  |  | 2,085 |  |  | 1,294 |  |  | 1,188 |  |  | 7,200 |  |  | — |  |  | 16,508 |
Total commercial real estate - owner occupied | 208,626 |  |  | 224,822 |  |  | 266,450 |  |  | 254,407 |  |  | 154,969 |  |  | 123,766 |  |  | 15,772 |  |  | 1,248,812 |
Gross charge-offs, YTD | — |  |  | 25 |  |  | — |  |  | 19 |  |  | 114 |  |  | 65 |  |  | — |  |  | 223 |
Commercial real estate - non owner occupied
Pass | 482,433 |  |  | 434,713 |  |  | 668,168 |  |  | 602,028 |  |  | 252,260 |  |  | 132,316 |  |  | 29,922 |  |  | 2,601,840 |
Special Mention | 1,648 |  |  | 265 |  |  | 189 |  |  | 11 |  |  | 331 |  |  | 5,721 |  |  | 54 |  |  | 8,219 |
Classified | 12,725 |  |  | 429 |  |  | 566 |  |  | — |  |  | 88 |  |  | 1,687 |  |  | — |  |  | 15,495 |
Total commercial real estate - non owner occupied | 496,806 |  |  | 435,407 |  |  | 668,923 |  |  | 602,039 |  |  | 252,679 |  |  | 139,724 |  |  | 29,976 |  |  | 2,625,554 |
Gross charge-offs, YTD | — |  |  | — |  |  | — |  |  | — |  |  | 304 |  |  | 158 |  |  | — |  |  | 462 |
Multi-family real estate
Pass | 87,803 |  |  | 65,508 |  |  | 114,627 |  |  | 159,038 |  |  | 40,940 |  |  | 9,926 |  |  | 27,630 |  |  | 505,472 |
Special Mention | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 793 |  |  | — |  |  | 793 |
Classified | — |  |  | 142 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 142 |
Total multi-family real estate | 87,803 |  |  | 65,650 |  |  | 114,627 |  |  | 159,038 |  |  | 40,940 |  |  | 10,719 |  |  | 27,630 |  |  | 506,407 |
Gross charge-offs, YTD | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Residential 1-4 family real estate
Pass | 216,725 |  |  | 347,472 |  |  | 404,809 |  |  | 278,197 |  |  | 166,013 |  |  | 296,870 |  |  | 2,768 |  |  | 1,712,854 |
Special Mention | 74 |  |  | — |  |  | 10 |  |  | 95 |  |  | 61 |  |  | 740 |  |  | — |  |  | 980 |
Classified | 3,968 |  |  | 227 |  |  | 2,558 |  |  | 544 |  |  | 1,558 |  |  | 6,633 |  |  | — |  |  | 15,488 |
Total residential 1-4 family real estate | 220,767 |  |  | 347,699 |  |  | 407,377 |  |  | 278,836 |  |  | 167,632 |  |  | 304,243 |  |  | 2,768 |  |  | 1,729,322 |
Gross charge-offs, YTD | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 18 |  |  | — |  |  | 18 |
Home equity loans/lines of credit
Pass | 2,096 |  |  | 2,672 |  |  | 645 |  |  | 251 |  |  | 259 |  |  | 832 |  |  | 333,434 |  |  | 340,189 |
Special Mention | 120 |  |  | 153 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 15 |  |  | 288 |
Classified | 88 |  |  | 43 |  |  | 68 |  |  | 90 |  |  | — |  |  | 7 |  |  | 5,110 |  |  | 5,406 |
Total home equity loans/lines of credit | 2,304 |  |  | 2,868 |  |  | 713 |  |  | 341 |  |  | 259 |  |  | 839 |  |  | 338,559 |  |  | 345,883 |
Gross charge-offs, YTD | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2 |  |  | 2 |
Consumer loans
Pass | 14,623 |  |  | 10,005 |  |  | 7,059 |  |  | 2,380 |  |  | 1,049 |  |  | 320 |  |  | 34,747 |  |  | 70,183 |
Special Mention | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 21 |  |  | 21 |
Classified | 33 |  |  | 21 |  |  | 27 |  |  | 9 |  |  | — |  |  | 28 |  |  | 331 |  |  | 449 |
Total consumer loans | 14,656 |  |  | 10,026 |  |  | 7,086 |  |  | 2,389 |  |  | 1,049 |  |  | 348 |  |  | 35,099 |  |  | 70,653 |
Gross charge-offs, YTD | 6 |  |  | 121 |  |  | 41 |  |  | 37 |  |  | 2 |  |  | 10 |  |  | 1,308 |  |  | 1,525 |
Total loans | $ | 1,503,051 |  |  | $ | 1,296,222 |  |  | $ | 1,649,851 |  |  | $ | 1,410,440 |  |  | $ | 690,998 |  |  | $ | 659,617 |  |  | $ | 883,309 |  |  | 8,093,488 |
Unamortized net deferred loan fees |  | 1,188 |
Total loans, net of deferred loan fees |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 8,094,676 |
Total gross charge-offs, year to date | $ | 312 |  |  | $ | 894 |  |  | $ | 890 |  |  | $ | 374 |  |  | $ | 557 |  |  | $ | 1,180 |  |  | $ | 5,380 |  |  | $ | 9,587 |
| 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 fees |  | (178) |
Total loans, net of deferred loan 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 December 31, 2024 and December 31, 2023 of the loans modified during the twelve months then ended for borrowers experiencing financial difficulty, by loan category and type of concession granted.
($ in thousands) |  |  |  |  |  | Payment Delay |  | Term Extension |  |  |  | Combination - Principal Forgiveness and Term Extension |  | Combination - Interest Rate Reduction and Term Extension |  |  |  | Total |  | Percent of Total Class of Loans
As of and for the year ended December 31, 2024 |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  |  |  |  | $ | 180 |  |  | $ | 911 |  |  |  |  | $ | 878 |  |  | $ | 92 |  |  |  |  | $ | 2,061 |  |  | 0.22 | %
Construction, development & other land loans |  |  |  |  |  | — |  |  | 171 |  |  |  |  | — |  |  | — |  |  |  |  | 171 |  |  | 0.03 | %
Commercial real estate - owner occupied |  |  |  |  |  | — |  |  | — |  |  |  |  | 131 |  |  | — |  |  |  |  | 131 |  |  | 0.01 | %
Commercial real estate - non owner occupied |  |  |  |  |  | — |  |  | 102 |  |  |  |  | — |  |  | — |  |  |  |  | 102 |  |  | — | %
Residential 1-4 family real estate |  |  |  |  |  | — |  |  | 195 |  |  |  |  | — |  |  | — |  |  |  |  | 195 |  |  | 0.01 | %
Home equity loans/lines of credit |  |  |  |  |  | — |  |  | 413 |  |  |  |  | — |  |  | 238 |  |  |  |  | 651 |  |  | 0.19 | %
Total |  |  |  |  |  | $ | 180 |  |  | $ | 1,792 |  |  |  |  | $ | 1,009 |  |  | $ | 330 |  |  |  |  | $ | 3,311 |  |  | 0.04 | %
As of and for the year ended December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  |  |  |  | $ | 2,590 |  |  | $ | 251 |  |  |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 2,841 |  |  | 0.31 | %
Construction, development & other land loans |  |  |  |  |  | — |  |  | 354 |  |  |  |  | — |  |  | 8 |  |  |  |  | 362 |  |  | 0.04 | %
Commercial real estate - owner occupied |  |  |  |  |  | 210 |  |  | 4,245 |  |  |  |  | — |  |  | — |  |  |  |  | 4,455 |  |  | 0.35 | %
Commercial real estate - non owner occupied |  |  |  |  |  | — |  |  | 206 |  |  |  |  | — |  |  | — |  |  |  |  | 206 |  |  | 0.01 | %
Residential 1-4 family real estate |  |  |  |  |  | — |  |  | 735 |  |  |  |  | — |  |  | — |  |  |  |  | 735 |  |  | 0.04 | %
Home equity loans/lines of credit |  |  |  |  |  | 557 |  |  | 2,436 |  |  |  |  | — |  |  | 121 |  |  |  |  | 3,114 |  |  | 0.93 | %
Consumer loans |  |  |  |  |  | — |  |  | 6 |  |  |  |  | — |  |  | — |  |  |  |  | 6 |  |  | 0.01 | %
Total |  |  |  |  |  | $ | 3,357 |  |  | $ | 8,233 |  |  |  |  | $ | — |  |  | $ | 129 |  |  |  |  | $ | 11,719 |  |  | 0.14 | %
We offered a 90 day forbearance to those impacted by Hurricane Helene. For the twelve months ended December 31, 2024 and December 31, 2023, there were no modifications for borrowers experiencing financial difficulty with principal forgiveness concessions. The following tables describe the financial effect for the twelve months ended December 31, 2024 and December 31, 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 year ended December 31, 2024 |  |  |  |  |  |  |  |
Commercial and industrial |  | 0.75 | % |  |  |  | 11 |  | 10
Construction, development & other land loans |  | — | % |  |  |  | 0 |  | 5
Commercial real estate - owner occupied |  | 4.26 | % |  |  |  | 12 |  | 0
Commercial real estate - non owner occupied |  | — | % |  |  |  | 0 |  | 13
Residential 1-4 family real estate |  | — | % |  |  |  | 0 |  | 103
Home equity loans/lines of credit |  | 1.76 | % |  |  |  | 0 |  | 61
For the year ended December 31, 2023 |  |  |  |  |  |  |  |
Commercial and industrial |  | — | % |  |  |  | 4 |  | 31
Construction, development & other land loans |  | 1.55 | % |  |  |  | 0 |  | 19
Commercial real estate - owner occupied |  | — | % |  |  |  | 11 |  | 34
Commercial real estate - non owner occupied |  | — | % |  |  |  | 0 |  | 13
Residential 1-4 family real estate |  | — | % |  |  |  | 0 |  | 23
Home equity loans/lines of credit |  | 2.40 | % |  |  |  | 13 |  | 49
Consumer loans |  | — | % |  |  |  | 0 |  | 24
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 presents the performance of loans that have been modified in the last twelve months as of December 31, 2024 and 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
For the year ended December 31, 2024 |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 1,183 |  |  | $ | — |  |  | $ | — |  |  | $ | 878 |
Construction, development & other land loans |  | 171 |  |  | — |  |  | — |  |  | — |
Commercial real estate - owner occupied |  | 131 |  |  | — |  |  | — |  |  | — |
Commercial real estate - non owner occupied |  | 102 |  |  | — |  |  | — |  |  | — |
Residential 1-4 family real estate |  | 137 |  |  | — |  |  | — |  |  | 58 |
Home equity loans/lines of credit |  | 583 |  |  | — |  |  | 68 |  |  | — |
Total |  | $ | 2,307 |  |  | $ | — |  |  | $ | 68 |  |  | $ | 936 |
For the year ended December 31, 2023 |  |  |  |  |  |  |  |
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 |  |  | — |  |  | — |  |  | — |
Total |  | $ | 11,640 |  |  | $ | 79 |  |  | $ | — |  |  | $ | — |
The following table presents the amortized cost basis of loans that had a payment default during the year ended December 31, 2024 and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty by loan category and type of concession granted.
|  |  |  |  |  |  | Amortized Cost Basis of Modified Receivables That Subsequently Defaulted
|  |  |  |  |  |  |  | Term Extension |  |  |  |  |  |  |  |  |  | Total
For the year ended December 31, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential 1-4 family real estate |  |  |  |  |  |  |  | $ | 58 |  |  |  |  |  |  |  |  |  |  | $ | 58 |
Total |  |  |  |  |  |  |  | $ | 58 |  |  |  |  |  |  |  |  |  |  | $ | 58 |
None of the modifications made for borrowers experiencing financial difficulty during the twelve months ended December 31, 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. TDR Disclosures Prior to the Adoption of ASU 2022-02 The restructuring of a loan was considered a TDR if both (i) the borrower was experiencing financial difficulties and (ii) the creditor had granted a concession. Concessions may have included interest rate reductions or below market interest rates, principal forgiveness, extension of terms and other actions intended to minimize potential losses. The vast majority of the Company’s TDRs modified during the year ended December 31, 2022 related to interest rate reductions combined with extension of terms. The Company does not generally grant principal forgiveness. The Company’s TDRs can be classified as either nonaccrual or accruing based on the loan’s payment status. The TDRs that are nonaccrual are reported within the nonaccrual loan totals presented previously. The following tables present information related to loans modified in a TDR during periods as indicated.
|  | For the year ended December 31, 2022
($ in thousands, except number of contracts) |  | Number of Contracts |  | Pre- Modification Restructured Balances |  | Post- Modification Restructured Balances
TDRs – Accruing |  |  |  |  |  |
Commercial and industrial |  | 2 |  |  | $ | 143 |  |  | $ | 143 |
Construction, development & other land loans |  | 1 |  |  | 67 |  |  | 67 |
Residential 1-4 family real estate |  | 2 |  |  | 75 |  |  | 78 |
TDRs – Nonaccrual |  |  |  |  |  |
Commercial and industrial |  | 5 |  |  | 744 |  |  | 744 |
Commercial real estate - non owner occupied |  | 1 |  |  | 72 |  |  | 72 |
Residential 1-4 family real estate |  | 1 |  |  | 36 |  |  | 36 |
Total TDRs arising during period |  | 12 |  |  | $ | 1,137 |  |  | $ | 1,140 |
The Company considered a TDR loan to have defaulted when it became 90 or more days delinquent under the modified terms, had been transferred to nonaccrual status, or had been transferred to foreclosed real estate. There were no accruing TDRs that were modified in the twelve months preceding December 31, 2022 and that defaulted during the twelve months ended December 31, 2022. Concentration of Credit Risk The Company’s loan portfolio is not concentrated in loans to any single borrower or to a relatively small number of borrowers. Additionally, management is not aware of any concentrations of loans to classes of borrowers or industries that would be similarly affected by economic conditions. Approximately 88% of the Company's loan portfolio is secured by real estate and is therefore susceptible to changes in real estate valuations. Most of the Company's business activity is with customers located within the markets where we have banking operations. While our exposure to credit risk is affected by changes in the economy within our markets, the risk is not significantly concentrated. The following table presents the total lending exposure for the counties with the largest percentage of our loan portfolio as of December 31, 2024 and 2023. No other market (as defined by county) had total loans outstanding in excess of 5% of the total portfolio at year end.
|  | Percentage of Loans Outstanding
|  | 2024 |  | 2023
Wake County, North Carolina |  | 9.7 | % |  | 10.1 | %
New Hanover County, North Carolina |  | 8.9 | % |  | 8.1 | %
Mecklenburg County, North Carolina |  | 7.8 | % |  | 7.6 | %
Buncombe County, North Carolina |  | 5.2 | % |  | 5.3 | %
Guilford County, North Carolina |  | 4.9 | % |  | 5.0 | %
In addition to monitoring potential concentrations of loans to particular borrowers or groups of borrowers, industries, and geographic regions, the Company monitors exposure to credit risk that could arise from potential concentrations of lending products and practices The Company has determined that there is no concentration of credit risk associated with its lending policies or practices. Impact of Hurricane Helene The Company identified borrowers with approximately $744 million of loans outstanding within the portions of Western North and South Carolina that were significantly impacted by Hurricane Helene. The following is a summary of the categories of those loans outstanding as of December 31, 2024:
($ in thousands) |  | Balance
Commercial and industrial |  | $ | 10,543 |
Construction, development & other land loans |  | 24,891 |
Commercial real estate - owner occupied |  | 96,412 |
Commercial real estate - non owner occupied |  | 287,076 |
Multi-family real estate |  | 25,424 |
Residential 1-4 family real estate |  | 262,166 |
Home equity loans/lines of credit |  | 37,472 |
Consumer loans |  | — |
Total |  | $ | 743,984 |
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 as of December 31, 2024. The Company applied increased reserve rates based upon severe economic factors to the approximately $744 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 $13.0 million, expanding the ACL as a percent of loans in the impacted geography from 1.25% to 3.00% as of December 31, 2024 and adding 16 basis points to the overall ACL as a percent of total loans, which was 1.51% as of December 31, 2024. We offered a 90 day forbearance to those loan customers impacted by Hurricane Helene. Allowance for Unfunded Loan Commitments In addition to the ACL on loans, the Company maintains an allowance for lending-related commitments such as unfunded loan commitments and letters of credit. The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for lending-related commitments on off-balance sheet credit exposures is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur, which is based on a historical funding study derived from internal information, and an estimate of expected credit losses on commitments expected to be funded over its estimated life, which are the same loss rates that are used in computing the ACL on loans, and are discussed in Note 1. The allowance for unfunded loan commitments were included in "Other liabilities" on the consolidated balance sheets. The following table prese nts the balance and activity in the allowance for unfunded loan commitments for twelve months ended December 31, 2024 and December 31, 2023:
($ in thousands) |  | December 31, 2024 |  | December 31, 2023 |
Beginning balance |  | $ | 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 |  | (2,303) |  |  | (3,858) |  |
Ending balance |  | $ | 9,066 |  |  | $ | 11,369 |  |

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