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Loans, Allowance for Credit Losses, and Asset Quality Information | 6 Months Ended
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Jun. 30, 2025
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) |  | June 30, 2025 |  | December 31, 2024
|  | Amount |  | Percentage |  | Amount |  | Percentage
Commercial and industrial |  | $ | 911,227 |  |  | 11 | % |  | $ | 919,690 |  |  | 11 | %
Construction, development & other land loans |  | 633,529 |  |  | 8 | % |  | 647,167 |  |  | 8 | %
Commercial real estate - owner occupied |  | 1,254,596 |  |  | 15 | % |  | 1,248,812 |  |  | 16 | %
Commercial real estate - non owner occupied |  | 2,758,629 |  |  | 34 | % |  | 2,625,554 |  |  | 33 | %
Multi-family real estate |  | 509,419 |  |  | 6 | % |  | 506,407 |  |  | 6 | %
Residential 1-4 family real estate |  | 1,731,397 |  |  | 21 | % |  | 1,729,322 |  |  | 21 | %
Home equity loans/lines of credit |  | 355,876 |  |  | 4 | % |  | 345,883 |  |  | 4 | %
Consumer loans |  | 70,137 |  |  | 1 | % |  | 70,653 |  |  | 1 | %
Subtotal |  | 8,224,810 |  |  | 100 | % |  | 8,093,488 |  |  | 100 | %
Unamortized net deferred loan costs/(fees) |  | 840 |  |  |  |  | 1,188 |  |  |
Total loans |  | $ | 8,225,650 |  |  |  |  | $ | 8,094,676 |  |  |
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) |  | June 30, 2025 |  | December 31, 2024
Guaranteed portions of SBA loans included in table above |  | $ | 60,818 |  |  | $ | 34,095 |
Unguaranteed portions of SBA loans included in table above |  | 101,170 |  |  | 101,356 |
Total SBA loans included in the table above |  | $ | 161,988 |  |  | $ | 135,451 |
Sold portions of SBA loans with servicing retained - not included in tables above |  | $ | 301,145 |  |  | $ | 330,482 |
At June 30, 2025 and December 31, 2024, there were remaining unaccreted discounts on the retained portion of sold SBA loans amounting to $2.3 million and $2.9 million, respectively. At June 30, 2025 and December 31, 2024, l oans in the amount of $6.9 billion and $6.7 billion, respectively, were pledged as collateral to the Federal Reserve and the FHLB for borrowing capacity. Refer to Note 5 for further discussion. At June 30, 2025 and December 31, 2024, total loans included loans to directors and executive officers of the Company, and their associates, totaling approximately $61.7 million and $62.9 million, respectively. Available credit on related party loans totaled $0.3 million and $1.0 million at June 30, 2025 and December 31, 2024, respectively. As of June 30, 2025 and December 31, 2024, unamortized discounts on all acquired loans totaled $11.8 million and $15.1 million, respectively. Nonperforming assets ("NPAs") are defined as nonaccrual loans, loans past due 90 or more days and still accruing interest, and foreclosed properties. The following table summarizes the NPAs for each date presented.
($ in thousands) |  | June 30, 2025 |  | December 31, 2024
Nonaccrual loans |  | $ | 34,625 |  |  | $ | 31,779 |
Accruing loans > 90 days past due |  | — |  |  | — |
Total nonperforming loans |  | 34,625 |  |  | 31,779 |
Foreclosed properties |  | 1,218 |  |  | 4,965 |
Total nonperforming assets |  | $ | 35,843 |  |  | $ | 36,744 |
At June 30, 2025 and December 31, 2024, the Company had $1.3 million and $1.2 million, respectively, in residential mortgage loans in the process of foreclosure. At June 30, 2025 and December 31, 2024, there was one loan with commitments to lend an immaterial amount and $0.2 million, respectively, of additional funds to borrowers whose loans were nonperforming. The following table is a summary of the Company’s nonaccrual loans by major categories as of June 30, 2025:
($ in thousands) |  | Nonaccrual Loans with No Allowance |  | Nonaccrual Loans with an Allowance |  | Total Nonaccrual Loans
Commercial and industrial |  | $ | — |  |  | $ | 10,594 |  |  | $ | 10,594 |
Construction, development & other land loans |  | — |  |  | 151 |  |  | 151 |
Commercial real estate - owner occupied |  | 1,985 |  |  | 8,007 |  |  | 9,992 |
Commercial real estate - non owner occupied |  | 3,051 |  |  | 1,874 |  |  | 4,925 |
Residential 1-4 family real estate |  | — |  |  | 6,678 |  |  | 6,678 |
Home equity loans/lines of credit |  | — |  |  | 1,971 |  |  | 1,971 |
Consumer loans |  | — |  |  | 314 |  |  | 314 |
Total |  | $ | 5,036 |  |  | $ | 29,589 |  |  | $ | 34,625 |
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 |
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) |  | Six Months Ended June 30, 2025 |  |  |  | Six Months Ended June 30, 2024
Commercial and industrial |  | $ | 234 |  |  |  |  | $ | 226 |
Construction, development & other land loans |  | 42 |  |  |  |  | — |
Commercial real estate - owner occupied |  | 223 |  |  |  |  | 168 |
Commercial real estate - non owner occupied |  | 93 |  |  |  |  | 55 |
Residential 1-4 family real estate |  | 115 |  |  |  |  | 34 |
Home equity loans/lines of credit |  | 39 |  |  |  |  | 16 |
Consumer loans |  | 3 |  |  |  |  | — |
Total |  | $ | 749 |  |  |  |  | $ | 499 |
The following table presents an analysis of the payment status of the Company’s loans as of June 30, 2025:
($ in thousands) |  | Accruing Current |  | Accruing 30-59 Days Past Due |  | Accruing 60-89 Days Past Due |  |  |  | Nonaccrual Loans |  | Total Loans Receivable
Commercial and industrial |  | $ | 899,125 |  |  | $ | 1,220 |  |  | $ | 288 |  |  |  |  | $ | 10,594 |  |  | $ | 911,227 |
Construction, development & other land loans |  | 632,474 |  |  | 904 |  |  | — |  |  |  |  | 151 |  |  | 633,529 |
Commercial real estate - owner occupied |  | 1,240,800 |  |  | 3,804 |  |  | — |  |  |  |  | 9,992 |  |  | 1,254,596 |
Commercial real estate - non owner occupied |  | 2,749,190 |  |  | 4,496 |  |  | 18 |  |  |  |  | 4,925 |  |  | 2,758,629 |
Multi-family real estate |  | 509,419 |  |  | — |  |  | — |  |  |  |  | — |  |  | 509,419 |
Residential 1-4 family real estate |  | 1,712,490 |  |  | 7,237 |  |  | 4,992 |  |  |  |  | 6,678 |  |  | 1,731,397 |
Home equity loans/lines of credit |  | 353,058 |  |  | 588 |  |  | 259 |  |  |  |  | 1,971 |  |  | 355,876 |
Consumer loans |  | 69,455 |  |  | 224 |  |  | 144 |  |  |  |  | 314 |  |  | 70,137 |
Total |  | $ | 8,166,011 |  |  | $ | 18,473 |  |  | $ | 5,701 |  |  |  |  | $ | 34,625 |  |  | 8,224,810 |
Unamortized net deferred loan costs/(fees) |  |  |  |  |  |  |  | 840 |
Total loans |  |  |  |  |  |  |  |  |  |  |  | $ | 8,225,650 |
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 costs/(fees) |  |  |  |  |  |  |  | 1,188 |
Total loans |  |  |  |  |  |  |  |  |  |  |  | $ | 8,094,676 |
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 following table presents an analysis of collateral dependent loans of the Company as of June 30, 2025:
($ in thousands) |  |  |  |  |  |  |  | Commercial Property |  |  |  | Total Collateral-Dependent Loans
Commercial real estate - owner occupied |  |  |  |  |  |  |  | $ | 2,598 |  |  |  |  | $ | 2,598 |
Commercial real estate - non owner occupied |  |  |  |  |  |  |  | 3,051 |  |  |  |  | 3,051 |
Total |  |  |  |  |  |  |  | $ | 5,649 |  |  |  |  | $ | 5,649 |
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 |
There have been no material changes from the treatment of collateral dependent loans under the current expected credit loss ("CECL") model as discussed in Note 4 of the Company's Annual Report on Form 10-K for the year ended December 31, 2024. The following tables present the activity in the allowance for credit losses ("ACL") on loans for each of the periods indicated. 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.
($ in thousands) |  | Beginning balance |  | Charge-offs |  | Recoveries |  | Provisions / (Reversals) |  | Ending balance
As of and for the three months ended June 30, 2025 |  |  |  |  |  |  |
Commercial and industrial |  | $ | 19,275 |  |  | $ | (1,416) |  |  | $ | 467 |  |  | $ | 180 |  |  | $ | 18,506 |
Construction, development & other land loans |  | 7,669 |  |  | — |  |  | 32 |  |  | 959 |  |  | 8,660 |
Commercial real estate - owner occupied |  | 19,325 |  |  | (13) |  |  | 5 |  |  | 1,429 |  |  | 20,746 |
Commercial real estate - non owner occupied |  | 28,384 |  |  | (33) |  |  | 17 |  |  | (3,943) |  |  | 24,425 |
Multi-family real estate |  | 5,015 |  |  | — |  |  | — |  |  | (270) |  |  | 4,745 |
Residential 1-4 family real estate |  | 33,735 |  |  | — |  |  | 24 |  |  | 2,024 |  |  | 35,783 |
Home equity loans/lines of credit |  | 3,502 |  |  | — |  |  | 2 |  |  | (59) |  |  | 3,445 |
Consumer loans |  | 3,726 |  |  | (292) |  |  | 51 |  |  | 750 |  |  | 4,235 |
Total |  | $ | 120,631 |  |  | $ | (1,754) |  |  | $ | 598 |  |  | $ | 1,070 |  |  | $ | 120,545 |
As of and for the six months ended June 30, 2025 |  |  |  |  |  |  |
Commercial and industrial |  | $ | 19,474 |  |  | $ | (3,632) |  |  | $ | 964 |  |  | $ | 1,700 |  |  | $ | 18,506 |
Construction, development & other land loans |  | 9,314 |  |  | — |  |  | 105 |  |  | (759) |  |  | 8,660 |
Commercial real estate - owner occupied |  | 19,380 |  |  | (450) |  |  | 111 |  |  | 1,705 |  |  | 20,746 |
Commercial real estate - non owner occupied |  | 27,768 |  |  | (938) |  |  | 20 |  |  | (2,425) |  |  | 24,425 |
Multi-family real estate |  | 5,476 |  |  | — |  |  | — |  |  | (731) |  |  | 4,745 |
Residential 1-4 family real estate |  | 33,552 |  |  | (124) |  |  | 53 |  |  | 2,302 |  |  | 35,783 |
Home equity loans/lines of credit |  | 4,111 |  |  | (68) |  |  | 21 |  |  | (619) |  |  | 3,445 |
Consumer loans |  | 3,497 |  |  | (662) |  |  | 105 |  |  | 1,295 |  |  | 4,235 |
Total |  | $ | 122,572 |  |  | $ | (5,874) |  |  | $ | 1,379 |  |  | $ | 2,468 |  |  | $ | 120,545 |
($ in thousands) |  | Beginning balance |  |  |  | Charge-offs |  | Recoveries |  | Provisions / (Reversals) |  | Ending balance
As of and for the three months ended June 30, 2024 |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 20,294 |  |  |  |  | $ | (2,478) |  |  | $ | 857 |  |  | $ | 1,164 |  |  | $ | 19,837 |
Construction, development & other land loans |  | 11,783 |  |  |  |  | — |  |  | 50 |  |  | (1,837) |  |  | 9,996 |
Commercial real estate - owner occupied |  | 18,163 |  |  |  |  | (30) |  |  | 4 |  |  | (278) |  |  | 17,859 |
Commercial real estate - non owner occupied |  | 26,252 |  |  |  |  | — |  |  | 41 |  |  | (417) |  |  | 25,876 |
Multi-family real estate |  | 4,422 |  |  |  |  | — |  |  | — |  |  | 707 |  |  | 5,129 |
Residential 1-4 family real estate |  | 22,704 |  |  |  |  | (6) |  |  | 106 |  |  | 2,051 |  |  | 24,855 |
Home equity loans/lines of credit |  | 3,336 |  |  |  |  | (2) |  |  | 17 |  |  | (174) |  |  | 3,177 |
Consumer loans |  | 3,113 |  |  |  |  | (141) |  |  | 123 |  |  | 234 |  |  | 3,329 |
Total |  | $ | 110,067 |  |  |  |  | $ | (2,657) |  |  | $ | 1,198 |  |  | $ | 1,450 |  |  | $ | 110,058 |
As of and for the six months ended June 30, 2024 |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 21,227 |  |  |  |  | $ | (4,063) |  |  | $ | 1,100 |  |  | $ | 1,573 |  |  | $ | 19,837 |
Construction, development & other land loans |  | 13,940 |  |  |  |  | (79) |  |  | 147 |  |  | (4,012) |  |  | 9,996 |
Commercial real estate - owner occupied |  | 18,218 |  |  |  |  | (88) |  |  | 8 |  |  | (279) |  |  | 17,859 |
Commercial real estate - non owner occupied |  | 24,916 |  |  |  |  | (158) |  |  | 43 |  |  | 1,075 |  |  | 25,876 |
Multi-family real estate |  | 3,825 |  |  |  |  | — |  |  | — |  |  | 1,304 |  |  | 5,129 |
Residential 1-4 family real estate |  | 21,396 |  |  |  |  | (6) |  |  | 227 |  |  | 3,238 |  |  | 24,855 |
Home equity loans/lines of credit |  | 3,339 |  |  |  |  | (2) |  |  | 22 |  |  | (182) |  |  | 3,177 |
Consumer loans |  | 2,992 |  |  |  |  | (376) |  |  | 180 |  |  | 533 |  |  | 3,329 |
Total |  | $ | 109,853 |  |  |  |  | $ | (4,772) |  |  | $ | 1,727 |  |  | $ | 3,250 |  |  | $ | 110,058 |
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, 2024. In the tables that follow, substantially all of the "Classified" loans have grades of 7 for commercial loans or Fail for consumer loans, 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) | 2025 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | Prior |  | Revolving |  | Total
As of June 30, 2025 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  |  |  |  |  |  |  |  |
Pass | $ | 91,695 |  |  | $ | 100,390 |  |  | $ | 70,362 |  |  | $ | 105,483 |  |  | $ | 68,956 |  |  | $ | 122,571 |  |  | $ | 335,484 |  |  | $ | 894,941 |
Special Mention | 9 |  |  | 889 |  |  | 108 |  |  | 45 |  |  | 82 |  |  | 708 |  |  | 2,203 |  |  | 4,044 |
Classified | 48 |  |  | 372 |  |  | 1,696 |  |  | 3,589 |  |  | 703 |  |  | 4,230 |  |  | 1,604 |  |  | 12,242 |
Total commercial and industrial | 91,752 |  |  | 101,651 |  |  | 72,166 |  |  | 109,117 |  |  | 69,741 |  |  | 127,509 |  |  | 339,291 |  |  | 911,227 |
Gross charge-offs, YTD | — |  |  | 257 |  |  | 747 |  |  | 449 |  |  | 20 |  |  | 411 |  |  | 1,748 |  |  | 3,632 |
Construction, development & other land loans |  |  |  |  |  |  |  |  |  |
Pass | 225,553 |  |  | 221,690 |  |  | 78,728 |  |  | 29,769 |  |  | 21,706 |  |  | 14,827 |  |  | 39,821 |  |  | 632,094 |
Special Mention | — |  |  | — |  |  | 590 |  |  | 63 |  |  | 6 |  |  | — |  |  | — |  |  | 659 |
Classified | — |  |  | 362 |  |  | 72 |  |  | 74 |  |  | — |  |  | 268 |  |  | — |  |  | 776 |
Total construction, development & other land loans | 225,553 |  |  | 222,052 |  |  | 79,390 |  |  | 29,906 |  |  | 21,712 |  |  | 15,095 |  |  | 39,821 |  |  | 633,529 |
Gross charge-offs, YTD | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Commercial real estate - owner occupied |  |  |  |  |  |  |  |  |  |
Pass | 138,171 |  |  | 182,313 |  |  | 201,521 |  |  | 233,755 |  |  | 236,166 |  |  | 210,733 |  |  | 16,552 |  |  | 1,219,211 |
Special Mention | 2,717 |  |  | 6,167 |  |  | 1,845 |  |  | 2,668 |  |  | 229 |  |  | 6,641 |  |  | 1,723 |  |  | 21,990 |
Classified | 167 |  |  | 1,429 |  |  | — |  |  | 2,340 |  |  | 519 |  |  | 8,940 |  |  | — |  |  | 13,395 |
Total commercial real estate - owner occupied | 141,055 |  |  | 189,909 |  |  | 203,366 |  |  | 238,763 |  |  | 236,914 |  |  | 226,314 |  |  | 18,275 |  |  | 1,254,596 |
Gross charge-offs, YTD | — |  |  | 420 |  |  | — |  |  | 17 |  |  | — |  |  | 13 |  |  | — |  |  | 450 |
Commercial real estate - non owner occupied |  |  |  |  |  |  |  |  |  |
Pass | 354,236 |  |  | 442,904 |  |  | 410,671 |  |  | 633,032 |  |  | 572,230 |  |  | 299,601 |  |  | 29,241 |  |  | 2,741,915 |
Special Mention | 49 |  |  | 1,357 |  |  | 265 |  |  | 189 |  |  | 6 |  |  | 1,595 |  |  | — |  |  | 3,461 |
Classified | — |  |  | 1,591 |  |  | 465 |  |  | 552 |  |  | — |  |  | 10,645 |  |  | — |  |  | 13,253 |
Total commercial real estate - non owner occupied | 354,285 |  |  | 445,852 |  |  | 411,401 |  |  | 633,773 |  |  | 572,236 |  |  | 311,841 |  |  | 29,241 |  |  | 2,758,629 |
Gross charge-offs, YTD | — |  |  | 905 |  |  | — |  |  | 33 |  |  | — |  |  | — |  |  | — |  |  | 938 |
Multi-family real estate |  |  |  |  |  |  |  |  |  |
Pass | 48,590 |  |  | 61,123 |  |  | 64,830 |  |  | 120,800 |  |  | 153,767 |  |  | 46,374 |  |  | 13,800 |  |  | 509,284 |
Special Mention | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Classified | — |  |  | — |  |  | 135 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 135 |
Total multi-family real estate | 48,590 |  |  | 61,123 |  |  | 64,965 |  |  | 120,800 |  |  | 153,767 |  |  | 46,374 |  |  | 13,800 |  |  | 509,419 |
Gross charge-offs, YTD | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Residential 1-4 family real estate |  |  |  |  |  |  |  |  |  |
Pass | 80,383 |  |  | 220,334 |  |  | 316,823 |  |  | 390,884 |  |  | 279,792 |  |  | 425,944 |  |  | 2,631 |  |  | 1,716,791 |
Special Mention | 146 |  |  | 21 |  |  | — |  |  | — |  |  | 88 |  |  | 652 |  |  | — |  |  | 907 |
Classified | 302 |  |  | 2,168 |  |  | 572 |  |  | 2,226 |  |  | 529 |  |  | 7,902 |  |  | — |  |  | 13,699 |
Total residential 1-4 family real estate | 80,831 |  |  | 222,523 |  |  | 317,395 |  |  | 393,110 |  |  | 280,409 |  |  | 434,498 |  |  | 2,631 |  |  | 1,731,397 |
Gross charge-offs, YTD | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 124 |  |  | — |  |  | 124 |
Home equity loans/lines of credit |  |  |  |  |  |  |  |  |  |
Pass | 2,437 |  |  | 1,314 |  |  | 2,228 |  |  | 602 |  |  | 231 |  |  | 666 |  |  | 342,750 |  |  | 350,228 |
Special Mention | — |  |  | 119 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 14 |  |  | 133 |
Classified | 176 |  |  | 73 |  |  | — |  |  | — |  |  | 89 |  |  | 5 |  |  | 5,172 |  |  | 5,515 |
Total home equity loans/lines of credit | 2,613 |  |  | 1,506 |  |  | 2,228 |  |  | 602 |  |  | 320 |  |  | 671 |  |  | 347,936 |  |  | 355,876 |
Gross charge-offs, YTD | — |  |  | — |  |  | — |  |  | 68 |  |  | — |  |  | — |  |  | — |  |  | 68 |
Consumer loans |  |  |  |  |  |  |  |  |  |
Pass | 8,825 |  |  | 11,576 |  |  | 7,294 |  |  | 4,874 |  |  | 1,566 |  |  | 887 |  |  | 34,652 |  |  | 69,674 |
Special Mention | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 18 |  |  | 18 |
Classified | — |  |  | 32 |  |  | 58 |  |  | 38 |  |  | 7 |  |  | 20 |  |  | 290 |  |  | 445 |
Total consumer loans | 8,825 |  |  | 11,608 |  |  | 7,352 |  |  | 4,912 |  |  | 1,573 |  |  | 907 |  |  | 34,960 |  |  | 70,137 |
Gross charge-offs, YTD | — |  |  | 71 |  |  | 27 |  |  | 4 |  |  | — |  |  | 37 |  |  | 523 |  |  | 662 |
Total loans | $ | 953,504 |  |  | $ | 1,256,224 |  |  | $ | 1,158,263 |  |  | $ | 1,530,983 |  |  | $ | 1,336,672 |  |  | $ | 1,163,209 |  |  | $ | 825,955 |  |  | 8,224,810 |
Unamortized net deferred loan costs/(fees) |  |  |  |  |  |  |  |  |  |  |  |  |  | 840 |
Total loans, net of deferred loan costs/(fees) |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 8,225,650 |
Total gross charge-offs, year to date | $ | — |  |  | $ | 1,653 |  |  | $ | 774 |  |  | $ | 571 |  |  | $ | 20 |  |  | $ | 585 |  |  | $ | 2,271 |  |  | $ | 5,874 |
| 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 costs/(fees) |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,188 |
Total loans, net of deferred loan costs/(fees) |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 8,094,676 |
Total gross charge-offs, year to date | $ | 312 |  |  | $ | 894 |  |  | $ | 890 |  |  | $ | 374 |  |  | $ | 557 |  |  | $ | 1,180 |  |  | $ | 5,380 |  |  | $ | 9,587 |
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 following table is a summary of the Company's nonaccrual and accruing modifications for borrowers experiencing financial difficulty by major categories for each date presented.
|  | June 30, 2025 |  | December 31, 2024
($ in thousands) |  | Accruing loans |  | Nonaccrual loans |  | Total |  | Accruing loans |  | Nonaccrual loans |  | Total
Commercial and industrial |  | $ | 86 |  |  | $ | 1,115 |  |  | $ | 1,201 |  |  | $ | 165 |  |  | $ | 2,118 |  |  | $ | 2,283 |
Construction, development & other land loans |  | 346 |  |  | — |  |  | 346 |  |  | 212 |  |  | — |  |  | 212 |
Commercial real estate - owner occupied |  | 3,736 |  |  | 571 |  |  | 4,307 |  |  | 3,974 |  |  | 175 |  |  | 4,149 |
Commercial real estate - non owner occupied |  | 4,523 |  |  | 1,544 |  |  | 6,067 |  |  | — |  |  | 149 |  |  | 149 |
Multi-family real estate |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Residential 1-4 family real estate |  | 483 |  |  | 308 |  |  | 791 |  |  | 380 |  |  | 285 |  |  | 665 |
Home equity loans/lines of credit |  | 2,184 |  |  | 621 |  |  | 2,805 |  |  | 2,143 |  |  | 572 |  |  | 2,715 |
Consumer loans |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | $ | 11,358 |  |  | $ | 4,159 |  |  | $ | 15,517 |  |  | $ | 6,874 |  |  | $ | 3,299 |  |  | $ | 10,173 |
The following tables present the amortized cost basis at June 30, 2025 and June 30, 2024 of the loans modified during the three and six month periods then ended for borrowers experiencing financial difficulty, by loan category and type of concession granted.
($ in thousands) |  |  |  |  |  | Payment Delay |  | Term Extension | Combination - Payment Delay and Term Extension |  |  | Total |  | Percent of Total Class of Loans
As of and for the three months ended June 30, 2025 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  |  |  |  | $ | 138 |  |  | $ | — |  |  |  |  |  |  |  |  | $ | — |  |  |  |  | $ | 138 |  |  | 0.02 | %
Construction, development & other land loans |  |  |  |  |  | — |  |  | 309 |  |  |  |  |  |  |  |  | — |  |  |  |  | 309 |  |  | 0.05 | %
Commercial real estate - owner occupied |  |  |  |  |  | 334 |  |  | 68 |  |  |  |  |  |  |  |  | — |  |  |  |  | 402 |  |  | 0.03 | %
Commercial real estate - non owner occupied |  |  |  |  |  | — |  |  | — |  |  |  |  |  |  |  |  | 85 |  |  |  |  | 85 |  |  | — | %
Residential 1-4 family real estate |  |  |  |  |  | — |  |  | 95 |  |  |  |  |  |  |  |  | 120 |  |  |  |  | 215 |  |  | 0.01 | %
Home equity loans/lines of credit |  |  |  |  |  | — |  |  | 225 |  |  |  |  |  |  |  |  | — |  |  |  |  | 225 |  |  | 0.06 | %
Total |  |  |  |  |  | $ | 472 |  |  | $ | 697 |  |  |  |  |  |  |  |  | $ | 205 |  |  |  |  | $ | 1,374 |  |  | 0.02 | %
As of and for the six months ended June 30, 2025 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  |  |  |  | $ | 192 |  |  | $ | — |  |  |  |  |  |  |  |  | $ | — |  |  |  |  | $ | 192 |  |  | 0.02 | %
Construction, development & other land loans |  |  |  |  |  | — |  |  | 309 |  |  |  |  |  |  |  |  | — |  |  |  |  | 309 |  |  | 0.05 | %
Commercial real estate - owner occupied |  |  |  |  |  | 334 |  |  | 111 |  |  |  |  |  |  |  |  | — |  |  |  |  | 445 |  |  | 0.04 | %
Commercial real estate - non owner occupied |  |  |  |  |  | 1,589 |  |  | — |  |  |  |  |  |  |  |  | 4,478 |  |  |  |  | 6,067 |  |  | 0.22 | %
Residential 1-4 family real estate |  |  |  |  |  | — |  |  | 110 |  |  |  |  |  |  |  |  | 120 |  |  |  |  | 230 |  |  | 0.01 | %
Home equity loans/lines of credit |  |  |  |  |  | — |  |  | 380 |  |  |  |  |  |  |  |  | — |  |  |  |  | 380 |  |  | 0.11 | %
Total |  |  |  |  |  | $ | 2,115 |  |  | $ | 910 |  |  |  |  |  |  |  |  | $ | 4,598 |  |  |  |  | $ | 7,623 |  |  | 0.09 | %
($ 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 June 30, 2024 |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  |  |  |  | $ | — |  |  | $ | 1 |  |  |  |  | $ | — |  |  | $ | 96 |  |  |  |  | $ | 97 |  |  | 0.01 | %
Residential 1-4 family real estate |  |  |  |  |  | — |  |  | 203 |  |  |  |  | — |  |  | — |  |  |  |  | 203 |  |  | 0.01 | %
Home equity loans/lines of credit |  |  |  |  |  | — |  |  | 290 |  |  |  |  | — |  |  | — |  |  |  |  | 290 |  |  | 0.09 | %
Total |  |  |  |  |  | $ | — |  |  | $ | 494 |  |  |  |  | $ | — |  |  | $ | 96 |  |  |  |  | $ | 590 |  |  | 0.01 | %
As of and for the six months ended June 30, 2024 |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  |  |  |  | $ | 114 |  |  | $ | 1 |  |  |  |  | $ | 878 |  |  | $ | 96 |  |  |  |  | $ | 1,089 |  |  | 0.13 | %
Commercial real estate - non owner occupied |  |  |  |  |  | — |  |  | 111 |  |  |  |  | — |  |  | — |  |  |  |  | 111 |  |  | — | %
Residential 1-4 family real estate |  |  |  |  |  | — |  |  | 203 |  |  |  |  | — |  |  | — |  |  |  |  | 203 |  |  | 0.01 | %
Home equity loans/lines of credit |  |  |  |  |  | — |  |  | 323 |  |  |  |  | — |  |  | 176 |  |  |  |  | 499 |  |  | 0.15 | %
Total |  |  |  |  |  | $ | 114 |  |  | $ | 638 |  |  |  |  | $ | 878 |  |  | $ | 272 |  |  |  |  | $ | 1,902 |  |  | 0.02 | %
For the three and six months ended June 30, 2025 and June 30, 2024, there were no modifications for borrowers experiencing financial difficulty with principal forgiveness concessions. The following table describes the financial effect for the three and six months ended June 30, 2025 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 June 30, 2025 |  |  |  |  |  |  |  |
Construction, development & other land loans |  | —% |  |  |  | 0 |  | 3
Commercial real estate - owner occupied |  | —% |  |  |  | 7 |  | 148
Commercial real estate - non owner occupied |  | —% |  |  |  | 4 |  | 2
Residential 1-4 family real estate |  | —% |  |  |  | 4 |  | 29
Home equity loans/lines of credit |  | —% |  |  |  | 0 |  | 40
For the six months ended June 30, 2025 |  |  |  |  |  |  |  |
Commercial and industrial |  | —% |  |  |  | 1 |  | 0
Construction, development & other land loans |  | —% |  |  |  | 0 |  | 3
Commercial real estate - owner occupied |  | —% |  |  |  | 7 |  | 97
Commercial real estate - non owner occupied |  | —% |  |  |  | 7 |  | 7
Residential 1-4 family real estate |  | —% |  |  |  | 4 |  | 31
Home equity loans/lines of credit |  | —% |  |  |  | 0 |  | 63
The following table describes the financial effect for the three and six months ended June 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 June 30, 2024 |  |  |  |  |  |  |  |
Commercial and industrial |  | 0.75% |  |  |  | 0 |  | 27
Residential 1-4 family real estate |  | —% |  |  |  | 0 |  | 103
Home equity loans/lines of credit |  | —% |  |  |  | 0 |  | 95
For the six months ended June 30, 2024 |  |  |  |  |  |  |  |
Commercial and industrial |  | 0.75% |  |  |  | 36 |  | 13
Commercial real estate - non owner occupied |  | —% |  |  |  | 0 |  | 13
Residential 1-4 family real estate |  | —% |  |  |  | 0 |  | 103
Home equity loans/lines of credit |  | 2.10% |  |  |  | 0 |  | 69
The Company closely monitors the performance of the modified loans that are to 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 June 30, 2025:
|  | 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 |  | $ | 286 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Construction, development & other land loans |  | 309 |  |  | — |  |  | — |  |  | — |
Commercial real estate - owner occupied |  | 571 |  |  | — |  |  | — |  |  | — |
Commercial real estate - non owner occupied |  | 1,675 |  |  | 4,393 |  |  | — |  |  | — |
Residential 1-4 family real estate |  | 185 |  |  | 45 |  |  | — |  |  | — |
Home equity loans/lines of credit |  | 486 |  |  | — |  |  | — |  |  | — |
|  | $ | 3,512 |  |  | $ | 4,438 |  |  | $ | — |  |  | $ | — |
The following table depicts the performance of loans that were modified in the last twelve months as of December 31, 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 |  | $ | 1,183 |  |  | $ | — |  |  | $ | — |  |  | $ | 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 |  |  | — |
|  | $ | 2,307 |  |  | $ | — |  |  | $ | 68 |  |  | $ | 936 |
During the three and six months ended June 30, 2025 and June 30, 2024, none of the loans to borrowers experiencing financial difficulty that were modified in the twelve months prior were considered to have had a payment default. At June 30, 2025, there were no commitments to lend additional funds to a borrower experiencing financial difficulty for whom a modification had been made. At December 31, 2024, there was a commitment to lend $0.1 million of additional funds to one borrower experiencing financial difficulty for whom a modification had been made. 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 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. 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 outstanding loan balances of approximately $755 million at the time of the storm. Those balances have since reduced to $703 million. The following is a summary of the categories of those loans outstanding as of June 30, 2025:
($ in thousands) |  | Balance
Commercial and industrial |  | $ | 15,997 |
Construction, development & other land loans |  | 15,933 |
Commercial real estate - owner occupied |  | 91,485 |
Commercial real estate - non owner occupied |  | 270,597 |
Multi-family real estate |  | 24,838 |
Residential 1-4 family real estate |  | 247,503 |
Home equity loans/lines of credit |  | 36,185 |
Total |  | $ | 702,538 |
Given that the recovery from the storm is ongoing in many impacted communities, the Company continues to evaluate possible impacts from the storm on borrowers and has reserved accordingly based upon the information available as of June 30, 2025. The Company applied increased reserve rates based upon severe economic factors to the approximately $703 million of loans in the most impacted path of Hurricane Helene. Additionally, the Company continues to evaluate 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 was $7.5 million as of June 30, 2025, adding 10 basis points to the overall ACL as a percent of total loans, which was 1.47% as of June 30, 2025. As of December 31, 2024, the ACL on these loans was $13.0 million, adding 16 basis points to the overall ACL as a percent of total loans, which was 1.51%. Allowance for Unfunded Loan Commitments In addition to the ACL on loans, the Company maintains an allowance for lending-related commitments such as unfunded loan commitments and letters of credit. The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for lending-related commitments on off-balance sheet credit exposures is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur, which is based on a historical funding study derived from internal information, and an estimate of expected credit losses on commitments expected to be funded over its estimated life, which are the same loss rates that are used in computing the ACL on loans. The allowance for unfunded loan commitments was included in "Other liabilities" on the consolidated balance sheets. The following table presents the balance and activity in the allowance for unfunded loan commitments for the three and six months ended June 30, 2025 and 2024:
|  | Three months ended June 30, |  | Six months ended June 30,
($ in thousands) |  | 2025 |  | 2024 |  | 2025 |  | 2024
Beginning balance |  | $ | 8,784 |  |  | $ | 10,768 |  |  | $ | 9,066 |  |  | $ | 11,369 |
Charge-offs |  | — |  |  | — |  |  | — |  |  | — |
Recoveries |  | — |  |  | — |  |  | — |  |  | — |
Provision for (reversal of) unfunded commitments |  | 1,142 |  |  | (908) |  |  | 860 |  |  | (1,509) |
Ending balance |  | $ | 9,926 |  |  | $ | 9,860 |  |  | $ | 9,926 |  |  | $ | 9,860 |

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