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Loans
 12 Months Ended
Dec. 31, 2024
Receivables [Abstract]  
Loans LOANS
The following table presents a summary of loans by category:
 
($ in thousands)December 31, 2024December 31, 2023
Commercial and industrial$4,720,428 $4,674,056 
Real estate loans:
Commercial - investor owned2,607,755 2,452,402 
Commercial - owner occupied2,359,956 2,344,117 
Construction and land development892,563 760,122 
Residential358,923 371,995 
Total real estate loans6,219,197 5,928,636 
Other281,193 285,653 
Loans, before unearned loan fees11,220,818 10,888,345 
Unearned loan fees, net(463)(4,227)
    Loans, including unearned loan fees$11,220,355 $10,884,118 

The loan balance includes a net premium on acquired loans of $7.8 million and $9.6 million at December 31, 2024 and 2023, respectively. At December 31, 2024 and 2023, loans of $5.7 billion and $4.8 billion, respectively, were pledged to the FHLB and the Federal Reserve.

The Company had no consumer mortgage loans secured by residential real estate in process of foreclosure as of December 31, 2024. Consumer mortgage loans secured by residential real estate in process of foreclosure totaled $1.0 million at December 31, 2023.

Loans to executive officers and directors, or to entities in which such individuals had beneficial interests as a shareholder, officer, or director were immaterial and $0.1 million for the years ended December 31, 2024 and 2023, respectively. Such loans were made in the normal course of business on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other customers and did not involve more than the normal risk of collectibility.
A summary of the activity, by loan category, in the allowance for credit losses on loans for 2022, 2023, and 2024 is as follows:
($ in thousands)Commercial and industrialCRE - investor ownedCRE - owner occupiedConstruction and land developmentResidential real estateOtherTotal
2022
Allowance for credit losses on loans:       
Balance, beginning of year$63,825 $35,877 $17,560 $14,536 $7,927 $5,316 $145,041 
Provision (benefit) for credit losses(6,121)46 4,867 (3,145)540 (397)(4,210)
Charge-offs(6,082)(478)(395)— (2,068)(370)(9,393)
Recoveries2,213 746 720 53 1,529 233 5,494 
Balance, end of year$53,835 $36,191 $22,752 $11,444 $7,928 $4,782 $136,932 
2023
Allowance for credit losses on loans:       
Balance, beginning of year$53,835 $36,191 $22,752 $11,444 $7,928 $4,782 $136,932 
Provision (benefit) for credit losses38,308 (335)523 (1,300)(2,109)796 35,883 
Charge-offs(36,302)(4,869)— (9)(656)(1,379)(43,215)
Recoveries3,045 293 130 63 979 661 5,171 
Balance, end of year$58,886 $31,280 $23,405 $10,198 $6,142 $4,860 $134,771 
2024
Allowance for credit losses on loans:       
Balance, beginning of year$58,886 $31,280 $23,405 $10,198 $6,142 $4,860 $134,771 
Provision (benefit) for credit losses14,770 3,502 (60)2,764 128 (475)20,629 
Charge-offs(13,073)(700)(3,074)(3,224)(878)(925)(21,874)
Recoveries2,648 135 129 99 1,142 271 4,424 
Balance, end of year$63,231 $34,217 $20,400 $9,837 $6,534 $3,731 $137,950 

The Company recorded a provision for credit losses on loans of $20.6 million and $35.9 million for the years ended December 31, 2024 and 2023, respectively. An additional provision for credit losses of $0.9 million and $0.7 million was recorded in 2024 and 2023, respectively, for securities, unfunded commitments and accrued interest on nonaccrual loans.

The CECL methodology incorporates various economic scenarios. The Company utilizes three forecasts in the model; Moody’s baseline, a stronger near-term growth upside and a moderate downside forecast. The Company weights these scenarios at 40%, 30%, and 30%, respectively, which added approximately $14.8 million to the ACL over the baseline model at December 31, 2024. The forecasts at the end of 2024 incorporate an expectation that the federal funds rate will continue to fall in 2025. The Company has also recognized various risks posed by loans in certain segments, including the commercial office sector, by allocating additional reserves to those segments. Some of the key risks to the forecasts that could result in future provision for credit losses are market reactions to the Federal Reserve policy actions that could push the economy into a recession, persistently higher inflation (including the impact of tariffs), tightening in the credit markets, and further weakness in the financial system.

In addition to the CECL methodology, the Company incorporates qualitative adjustments into the ACL on loans to capture credit risks inherent within the loan portfolio that are not captured in the DCF model. Included in these risks are 1) changes in lending policies and procedures, 2) actual and expected changes in business and economic conditions, 3) changes in the nature and volume of the portfolio, 4) changes in lending management, 5) changes in volume and the severity of past due loans, 6) changes in the quality of the loan review system, 7) changes in the value of underlying collateral, 8) the existence and effect of concentrations of credit and 9) other factors such as the regulatory, legal and competitive environments and events such as natural disasters and pandemics. At December 31, 2024, the ACL on loans included a qualitative adjustment of $44.3 million. Of this amount, $14.5 million was allocated to Sponsor Finance loans due to their unsecured nature.
Gross charge-offs by loan class and year of origination is presented in the following table:
December 31, 2024
Term Loans by Origination Year
($ in thousands)20242023202220212020PriorRevolving Loans Converted to Term LoansRevolving LoansTotal
Commercial and industrial$312 $2,646 $3,043 $35 $166 $772 $2,205 $3,589 $12,768 
Real estate:
Commercial - investor owned— — — 252 — 448 — — 700 
Commercial - owner occupied— — 41 475 10 2,548 — — 3,074 
Construction and land development— — — — 3,224 — — — 3,224 
Residential— — 166 15 — 471 202 24 878 
Other4 17 — 58 — 79 103 1 262 
Total charge-offs by origination year$316 $2,663 $3,250 $835 $3,400 $4,318 $2,510 $3,614 $20,906 
Total gross charge-offs by performing status968 
Total gross charge-offs$21,874 

December 31, 2023
Term Loans by Origination Year
($ in thousands)20232022202120202019PriorRevolving Loans Converted to Term LoansRevolving LoansTotal
Commercial and industrial$600 $2,999 $1,940 $2,539 $— $— $12,533 $15,178 $35,789 
Real estate:
Commercial - investor owned— — 170 — 4,692 7 — — 4,869 
Construction and land development— — — — — 9 — — 9 
Residential— — — — — 480 176 — 656 
Other— 3 459 — — 319 12 — 793 
Total charge-offs by origination year$600 $3,002 $2,569 $2,539 $4,692 $815 $12,721 $15,178 $42,116 
Total gross charge-offs by performing status1,099 
Total gross charge-offs$43,215 

The following tables present the recorded investment in nonperforming loans by category, excluding government guaranteed balances: 
 
December 31, 2024
($ in thousands)Non-accrualLoans over 90 days past due and still accruing interestTotal nonperforming loansNonaccrual loans with no allowance
Commercial and industrial$15,810 $11 $15,821 $4,279 
Real estate:
    Commercial - investor owned14,186 — 14,186 2,106 
    Commercial - owner occupied10,910 — 10,910 8,235 
    Construction and land development1,503 — 1,503 1,503 
    Residential258 — 258 — 
Other— 9 9 — 
       Total$42,667 $20 $42,687 $16,123 

December 31, 2023
($ in thousands)Non-accrualLoans over 90 days past due and still accruing interestTotal nonperforming loansNonaccrual loans with no allowance
Commercial and industrial$7,641 $115 $7,756 $6,179 
Real estate: 
    Commercial - investor owned20,404 — 20,404 19,466 
    Commercial - owner occupied12,972 363 13,335 9,010 
    Construction and land development1,205 64 1,269 464 
    Residential959 — 959 959 
Other— 5 5 — 
       Total$43,181 $547 $43,728 $36,078 


The nonperforming loan balances at December 31, 2024 and December 31, 2023 exclude government guaranteed balances of $22.0 million and $10.7 million, respectively. Interest income recognized on nonaccrual loans was immaterial in the years ending December 31, 2024, 2023, and 2022.

Collateral-dependent nonperforming loans by class of loan is presented as of the dates indicated:

December 31, 2024
Type of Collateral
($ in thousands)Commercial Real EstateResidential Real EstateBlanket LienOther
Commercial and industrial$— $— $4,279 $3,495 
Real estate:
Commercial - investor owned14,136 — — — 
Commercial - owner occupied7,521 482 486 — 
Total$21,657 $482 $4,765 $3,495 
December 31, 2023
Type of Collateral
($ in thousands)Commercial Real EstateResidential Real EstateBlanket LienOther
Commercial and industrial$527 $1,864 $344 $3,445 
Real estate:
Commercial - investor owned19,467 — — — 
Commercial - owner occupied5,904 1,638 1,831 — 
Construction and land development528 741 — — 
Residential— 959 — — 
Total$26,426 $5,202 $2,175 $3,445 



The aging of the recorded investment in past due loans by class and category is presented as of the dates indicated.
December 31, 2024
($ in thousands)30-89 Days
 Past Due		90 or More
Days
Past Due		Total
Past Due		CurrentTotal
Commercial and industrial$1,948 $12,228 $14,176 $4,706,252 $4,720,428 
Real estate:
Commercial - investor owned1,377 14,333 15,710 2,592,045 2,607,755 
Commercial - owner occupied10,542 18,591 29,133 2,330,823 2,359,956 
Construction and land development101 5,620 5,721 886,842 892,563 
Residential2,833 258 3,091 355,832 358,923 
Other34 9 43 281,150 281,193 
Loans, before unearned loan fees$16,835 $51,039 $67,874 $11,152,944 11,220,818 
Unearned loan fees, net(463)
Total$11,220,355 

December 31, 2023
($ in thousands)30-89 Days
 Past Due		90 or More
Days
Past Due		Total
Past Due		CurrentTotal
Commercial and industrial$3,445 $9,037 $12,482 $4,661,574 $4,674,056 
Real estate: 
Commercial - investor owned1,905 18,395 20,300 2,432,102 2,452,402 
Commercial - owner occupied8,409 14,142 22,551 2,321,566 2,344,117 
Construction and land development770 1,908 2,678 757,444 760,122 
Residential1,620 959 2,579 369,416 371,995 
Other82 4 86 285,567 285,653 
Loans, before unearned loan fees$16,231 $44,445 $60,676 $10,827,669 10,888,345 
Unearned loan fees, net(4,227)
Total$10,884,118 

The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon origination or acquisition. The starting point for the estimate of the allowance for credit losses is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. The Company uses a probability of default and loss given default model to determine the allowance for credit losses.
An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification. The effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses because of the measurement methodologies used to estimate the allowance.

The most common concession the Company provides to borrowers experiencing financial difficulty is a term extension. In limited circumstances, the Company may modify loans by providing principal forgiveness or an interest rate reduction. When principal forgiveness is provided, the amortized cost basis of the asset is written off against the allowance for credit losses. The amount of the principal forgiveness is deemed to be uncollectible; therefore, that portion of the loan is written off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the allowance for credit losses.

In some cases, the Company will modify a 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, such as an interest rate reduction or principal forgiveness, may be granted.

The following tables show the recorded investment at the end of the dates listed for loans modified to borrowers experiencing financial difficulty, disaggregated by loan class and type of concession granted:
Term ExtensionPayment DelayTotal
Twelve months endedTwelve months endedTwelve months ended
($ in thousands)December 31,
2024		Percent of Total Loan ClassDecember 31,
2024		Percent of Total Loan ClassDecember 31,
2024		Percent of Total Loan Class
Commercial and industrial$43,094 0.91 %$567 0.01 %$43,661 0.92 %
Real estate:
Commercial - investor owned256 0.01 %— — %256 0.01 %
Commercial - owner occupied12,890 0.54 %— — %12,890 0.54 %
Residential69 0.02 %— — %69 0.02 %
Total$56,309 0.50 %$567 0.01 %$56,876 0.51 %


Term Extension
Twelve months ended
($ in thousands)December 31, 2023Percent of Total Loan Class
Commercial and industrial$39,437 0.84 %
Real estate:
Commercial - investor owned9,411 0.38 %
Commercial - owner occupied94 — %
Construction and land development1,137 0.15 %
Residential7,601 2.04 %
Other4 — %
Total$57,684 

The Company had $3.3 million in commitments to lend additional funds to borrowers experiencing financial difficulty included in the previous table at December 31, 2024. There were $6.6 million and $0.7 million of loans modified to borrowers experiencing financial difficulty that were also included in nonperforming loans, excluding government guaranteed balances, as of December 31, 2024 and December 31, 2023, respectively.
The following tables summarize the financial impacts of loan modifications made to borrowers experiencing financial difficulty and outstanding at the date indicated:

Weighted Average Term Extension (in months)Amount of Payment Delay
Twelve months endedTwelve months ended
($ in thousands)December 31, 2024December 31, 2024
Commercial and industrial6$85 
Real estate:
Commercial - investor owned12— 
Commercial - owner occupied22— 
Residential24— 

Weighted Average Term Extension (in months)
Twelve months ended
December 31, 2023
Commercial and industrial5
Real estate:
Commercial - investor owned4
Commercial - owner occupied3
Construction and land development7
Residential3
Other48

The following tables show the aging of the recorded investment in modified loans in the last 12 months by class at the date indicated:

December 31, 2024
($ in thousands)Current30-89 Days
 Past Due		90 or More
Days
Past Due		Total
Commercial and industrial$42,243 $567 $851 $43,661 
Real estate:
Commercial - investor owned256 — — 256 
Commercial - owner occupied11,972 — 918 12,890 
Residential69 — — 69 
Total$54,540 $567 $1,769 $56,876 
December 31, 2023
($ in thousands)Current30-89 Days
 Past Due		90 or More
Days
Past Due		Total
Commercial and industrial$39,187 $250 $— $39,437 
Real estate:
Commercial - investor owned9,411 — — 9,411 
Commercial - owner occupied— 94 — 94 
Construction and land development1,137 — — 1,137 
Residential7,527 74 — 7,601 
Other— 4 — 4 
Total$57,262 $422 $— $57,684 


The following table summarizes loans that experienced a default during the twelve months ended December 31, 2024, subsequent to being granted a modification in the preceding twelve months. All of these loans were charged-off during the preceding period. Default is defined as movement to nonperforming status, foreclosure or charge-off.

Term Extension
Twelve months ended
($ in thousands)December 31, 2024Percent of Total Loan Class
Commercial and industrial$1,000 0.02 %
Other4 NM
Total$1,004 

There were no loans that experienced a default during the twelve months ended December 31, 2023 subsequent to being granted a modification in the preceding twelve months. As of December 31, 2024 and December 31, 2023, the Company allocated an immaterial amount in specific reserves to loans that have been restructured.

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, payment experience, credit documentation, and current economic factors among other factors. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings:
•Grades 1, 2, and 3 – Includes loans to borrowers with a continuous record of strong earnings, sound balance sheet condition and capitalization, ample liquidity with solid cash flow, and whose management team has experience and depth within their industry.
•Grade 4 – Includes loans to borrowers with positive trends in profitability, satisfactory capitalization and balance sheet condition, and sufficient liquidity and cash flow.
•Grade 5 – Includes loans to borrowers that may display fluctuating trends in sales, profitability, capitalization, liquidity, and cash flow.
•Grade 6 – Includes loans to borrowers where an adverse change or perceived weakness has occurred, but may be correctable in the near future. Alternatively, this rating category may also include circumstances where the borrower is starting to reverse a negative trend or condition, or has recently been upgraded from a 7, 8, or 9 rating.
•Grade 7 – Special Mention credits are borrowers that have experienced financial setback of a nature that is not determined to be severe or influence ‘ongoing concern’ expectations. Although possible, no loss is anticipated, due to strong collateral and/or guarantor support.
•Grade 8 – Substandard credits include those borrowers characterized by significant losses and sustained downward trends in balance sheet condition, liquidity, and cash flow. Repayment reliance may have shifted to secondary sources. Collateral exposure may exist and additional reserves may be warranted.
•Grade 9 – Doubtful credits include borrowers that may show deteriorating trends that are unlikely to be corrected. Collateral values may appear insufficient for full recovery, therefore requiring a partial charge-off, or debt renegotiation with the borrower. The borrower may have declared bankruptcy or bankruptcy is likely in the near term. All doubtful rated credits will be on non-accrual.
The recorded investment by risk category of the loans by class and year of origination is presented in the following tables as of the dates indicated:
December 31, 2024
Term Loans by Origination Year
($ in thousands)20242023202220212020PriorRevolving Loans Converted to Term LoansRevolving LoansTotal
Commercial and industrial
Pass (1-6)$1,477,552 $958,327 $607,626 $172,201 $117,845 $69,236 $87,059 $942,991 $4,432,837 
Special Mention (7)32,479 40,804 4,982 2,373 796 64 14,783 55,100 151,381 
Classified (8-9)29,999 868 9,271 — 142 809 9,681 20,791 71,561 
Total Commercial and industrial$1,540,030 $999,999 $621,879 $174,574 $118,783 $70,109 $111,523 $1,018,882 $4,655,779 
Commercial real estate-investor owned
Pass (1-6)$587,403 $402,899 $479,131 $374,155 $266,044 $281,232 $4,566 $48,808 $2,444,238 
Special Mention (7)12,195 4,901 — 43,506 2,389 9,623 31,321 1,999 105,934 
Classified (8-9)256 — 821 20,274 13,564 4,702 — — 39,617 
Total Commercial real estate-investor owned$599,854 $407,800 $479,952 $437,935 $281,997 $295,557 $35,887 $50,807 $2,589,789 
Commercial real estate-owner occupied
Pass (1-6)$420,774 $329,001 $437,731 $408,210 $246,024 $352,095 $890 $29,239 $2,223,964 
Special Mention (7)6,914 10,764 5,323 12,324 8,426 18,389 — — 62,140 
Classified (8-9)13,794 3,727 4,063 6,452 3,765 22,319 — 250 54,370 
Total Commercial real estate-owner occupied$441,482 $343,492 $447,117 $426,986 $258,215 $392,803 $890 $29,489 $2,340,474 
Construction real estate
Pass (1-6)$404,286 $211,573 $198,278 $38,131 $6,110 $3,823 $9,513 $5,338 $877,052 
Special Mention (7)11,250 33 49 294 — 223 — — 11,849 
Classified (8-9)— — 1,573 — — 585 — — 2,158 
Total Construction real estate$415,536 $211,606 $199,900 $38,425 $6,110 $4,631 $9,513 $5,338 $891,059 
Residential real estate
Pass (1-6)$46,454 $37,371 $35,082 $27,784 $22,350 $78,113 $5,880 $79,284 $332,318 
Special Mention (7)1,539 26 239 — — 1,435 — 887 4,126 
Classified (8-9)— 2,979 107 11,976 5,538 1,572 — — 22,172 
Total residential real estate$47,993 $40,376 $35,428 $39,760 $27,888 $81,120 $5,880 $80,171 $358,616 
Other
Pass (1-6)$31,286 $6,058 $50,351 $55,844 $49,519 $31,061 $44 $40,578 $264,741 
Special Mention (7)— 2,326 — — — 1,780 — 7,660 11,766 
Classified (8-9)— — — — — 5 — — 5 
Total Other$31,286 $8,384 $50,351 $55,844 $49,519 $32,846 $44 $48,238 $276,512 
Total loans classified by risk category$3,076,181 $2,011,657 $1,834,627 $1,173,524 $742,512 $877,066 $163,737 $1,232,925 $11,112,229 
Total loans classified by performing status108,126 
Total loans$11,220,355 
December 31, 2023
Term Loans by Origination Year
($ in thousands)20232022202120202019PriorRevolving Loans Converted to Term LoansRevolving LoansTotal
Commercial and industrial
Pass (1-6)$1,567,738 $1,052,462 $345,292 $194,972 $123,425 $71,205 $12,163 $1,108,233 $4,475,490 
Special Mention (7)52,523 6,845 8,597 544 453 242 272 19,590 89,066 
Classified (8-9)12,824 19,306 1,833 812 339 363 508 45,830 81,815 
Total Commercial and industrial$1,633,085 $1,078,613 $355,722 $196,328 $124,217 $71,810 $12,943 $1,173,653 $4,646,371 
Commercial real estate-investor owned
Pass (1-6)$495,131 $544,223 $492,974 $323,175 $165,343 $236,914 $5,222 $51,413 $2,314,395 
Special Mention (7)3,626 22,725 51,851 1,657 164 5,526 — — 85,549 
Classified (8-9)9,411 1,034 43 15,838 2,831 4,919 48 — 34,124 
Total Commercial real estate-investor owned$508,168 $567,982 $544,868 $340,670 $168,338 $247,359 $5,270 $51,413 $2,434,068 
Commercial real estate-owner occupied
Pass (1-6)$407,901 $486,701 $489,589 $301,399 $183,872 $313,474 $5,083 $30,036 $2,218,055 
Special Mention (7)13,739 2,521 4,652 10,492 5,439 15,833 — 1,493 54,169 
Classified (8-9)3,389 3,413 2,247 3,181 8,878 24,857 5,056 — 51,021 
Total Commercial real estate-owner occupied$425,029 $492,635 $496,488 $315,072 $198,189 $354,164 $10,139 $31,529 $2,323,245 
Construction real estate
Pass (1-6)$292,689 $325,010 $96,426 $30,956 $1,413 $3,408 $10 $3,700 $753,612 
Special Mention (7)42 2,958 1,046 210 123 114 — — 4,493 
Classified (8-9)1,137 704 — — 13 466 — — 2,320 
Total Construction real estate$293,868 $328,672 $97,472 $31,166 $1,549 $3,988 $10 $3,700 $760,425 
Residential real estate
Pass (1-6)$59,259 $41,956 $51,436 $30,713 $17,793 $77,327 $1,464 $78,351 $358,299 
Special Mention (7)322 — — — 75 1,801 — 614 2,812 
Classified (8-9)127 1,073 69 — 30 1,492 74 7,500 10,365 
Total residential real estate$59,708 $43,029 $51,505 $30,713 $17,898 $80,620 $1,538 $86,465 $371,476 
Other
Pass (1-6)$10,071 $55,923 $67,766 $53,569 $9,382 $19,657 $7 $28,464 $244,839 
Special Mention (7)— — 14,472 — — — — 11,645 26,117 
Classified (8-9)— — — — — 8 — — 8 
Total Other$10,071 $55,923 $82,238 $53,569 $9,382 $19,665 $7 $40,109 $270,964 
Total loans classified by risk category$2,929,929 $2,566,854 $1,628,293 $967,518 $519,573 $777,606 $29,907 $1,386,869 $10,806,549 
Total loans classified by performing status77,569 
Total loans$10,884,118 
In the tables above, loan originations in 2024 and 2023 with a classification of “special mention” or “classified” primarily represent renewals or modifications initially underwritten and originated in prior years. For certain loans the Company evaluates credit quality based on the aging status. The following tables present the recorded investment in loans based on payment activity as of the dates indicated:
December 31, 2024
($ in thousands)PerformingNon PerformingTotal
Commercial and industrial$60,899 $11 $60,910 
Real estate:
Commercial - investor owned17,175 — 17,175 
Commercial - owner occupied27,349 — 27,349 
Residential647 — 647 
Other2,036 9 2,045 
Total$108,106 $20 $108,126 
December 31, 2023
($ in thousands)PerformingNon PerformingTotal
Commercial and industrial$26,076 $112 $26,188 
Real estate:
Commercial - investor owned17,885 — 17,885 
Commercial - owner occupied28,373 — 28,373 
Residential712 — 712 
Other4,406 5 4,411 
Total$77,452 $117 $77,569