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Note 3 - Loans/Leases Receivable

12 Months Ended

Dec. 31, 2024

Note 3. Loans/Leases Receivable

The composition of the loan/lease portfolio as of December 31, 2024 and 2023 is presented as follows:


	December 31, 2024		December 31, 2023

	(dollars in thousands)
C&I:
C&I - revolving	$	387,991	$	325,243
C&I - other *		1,514,932		1,481,778
		1,902,923		1,807,021

CRE - owner occupied		605,993		607,365
CRE - non-owner occupied		1,077,852		1,008,892
Construction and land development		1,313,543		1,420,525
Multi-family		1,132,110		996,143
Direct financing leases**		17,076		31,164
1-4 family real estate***		588,179		544,971
Consumer		146,728		127,335
		6,784,404		6,543,416
Allowance for credit losses		(89,841)		(87,200)
	$	6,694,563	$	6,456,216
** Direct financing leases:
Net minimum lease payments to be received	$	18,506	$	34,966
Estimated unguaranteed residual values of leased assets		165		165
Unearned lease/residual income		(1,595)		(3,967)
		17,076		31,164
Plus deferred lease origination costs, net of fees		18		75
		17,094		31,239
Less allowance for credit losses		(580)		(992)
	$	16,514	$	30,247

* Includes equipment financing agreements outstanding at m2, totaling $303.2 million and $319.5 million as of December 31, 2024 and 2023, respectively.

** Management performs an evaluation of the estimated unguaranteed residual values of leased assets on an annual basis, at a minimum. The evaluation consists of discussions with reputable and current vendors and management’s expertise and understanding of the current states of particular industries to determine informal valuations of the equipment. As necessary and where available, management will utilize valuations by independent appraisers. The majority of leases with residual values contain a lease options rider which requires the lessee to pay the residual value directly, finance the payment of the residual value, or extend the lease term to pay the residual value. In these cases, the residual value is protected and the risk of loss is minimal.

As of December 31, 2024 and December 31, 2023, the Company had two leases remaining with residual values totaling $165 thousand that were not protected with a lease end options rider. Management has performed specific evaluations of these unguaranteed residual values and determined that the valuations are appropriate as of such dates. There were no losses related to unguaranteed residual values during the years ended December 31, 2024, 2023, or 2022.

*** Includes residential real estate loans held for sale totaling $2.1 million and $2.6 million as of December 31, 2024 and 2023, respectively.

Note 3. Loans/Leases Receivable (continued)

Accrued interest on loans, which is excluded from the amortized cost of loans, totaled $30.9 million and $28.8 million at December 31, 2024 and December 31, 2023, respectively, and was included in other assets on the consolidated balance sheets.

Changes in accretable discounts on acquired loans for the years ended December 31, 2024, 2023 and 2022, respectively, are presented as follows:


	Year ended
	December 31, 2024		December 31, 2023		December 31, 2022
		Performing	Performing		Performing
	Loans		Loans		Loans

	(dollars in thousands)

Balance at the beginning of the period	$	(3,891)	$	(6,088)	$	(1,533)
Discount added at acquisition		—		—		(13,381)
Accretion recognized		1,581		2,197		8,826
Balance at the end of the period	$	(2,310)	$	(3,891)	$	(6,088)

The aging of the loan/lease portfolio by classes of loans/leases as of December 31, 2024 and 2023 is presented as follows:


	2024
										Accruing Past
				30-59 Days			60-89 Days			Due 90 Days or			Nonaccrual
Classes of Loans/Leases	Current			Past Due			Past Due			More			Loans/Leases			Total

	(dollars in thousands)
C&I:
C&I - revolving	$	387,767		$	30		$	—		$	—		$	194	$		387,991
C&I - other		1,474,729			13,159			2,931			2			24,111			1,514,932
CRE - owner occupied		604,550			173			454			—			816			605,993
CRE - non-owner occupied		1,074,541			85			—			—			3,226			1,077,852
Construction and land development		1,300,893			8			—			4,188			8,454			1,313,543
Multi-family		1,132,110			—			—			—			—			1,132,110
Direct financing leases		16,622			60			135			—			259			17,076
1-4 family real estate		579,943			4,910			539			80			2,707			588,179
Consumer		146,172			235			8			—			313			146,728
	$	6,717,327		$	18,660		$	4,067		$	4,270		$	40,080		$	6,784,404

As a percentage of total loan/lease portfolio		99.01	%		0.28	%		0.06	%		0.06	%		0.59	%		100.00	%


	2023
										Accruing Past
				30-59 Days			60-89 Days			Due 90 Days or			Nonaccrual
Classes of Loans/Leases	Current			Past Due			Past Due			More			Loans/Leases			Total

	(dollars in thousands)

C&I
C&I - revolving	$	325,243		$	—		$	—		$	—		$	—		$	325,243
C&I - other		1,459,818			4,848			5,603			1			11,508			1,481,778
CRE - owner occupied		604,602			—			83			—			2,680			607,365
CRE - non-owner occupied		1,003,267			631			—			—			4,994			1,008,892
Construction and land development		1,418,016			—			—			—			2,509			1,420,525
Multi-family		987,971			—			—			—			8,172			996,143
Direct financing leases		30,501			186			188			—			289			31,164
1-4 family real estate		538,229			3,883			534			85			2,240			544,971
Consumer		126,868			103			3			—			361			127,335
	$	6,494,515		$	9,651		$	6,411		$	86		$	32,753		$	6,543,416

As a percentage of total loan/lease portfolio		99.25	%		0.15	%		0.10	%		0.00	%		0.50	%		100.00	%

Note 3. Loans/Leases Receivable (continued)

NPLs by classes of loans/leases as of December 31, 2024 and 2023 is presented as follows:


	2024
	Accruing Past		Nonaccrual		Nonaccrual
	Due 90 Days or		Loans/Leases		Loans/Leases				Percentage of
Classes of Loans/Leases	More		with an ACL		without an ACL		Total NPLs		Total NPLs

	(dollars in thousands)
C&I:
C&I - revolving	$	—	$	193	$	1	$	194	-	%
C&I - other		2		20,849		3,262		24,113	54
CRE - owner occupied		—		816		—		816	2
CRE - non-owner occupied		—		2,686		540		3,226	7
Construction and land development		4,188		—		8,454		12,642	29
Multi-family		—		—		—		—	-
Direct financing leases		—		259		—		259	1
1-4 family real estate		80		2,366		341		2,787	6
Consumer		—		313		—		313	1
	$	4,270	$	27,482	$	12,598	$	44,350	100	%


	2023
	Accruing Past		Nonaccrual		Nonaccrual
	Due 90 Days or		Loans/Leases		Loans/Leases				Percentage of
Classes of Loans/Leases	More		with an ACL		without an ACL		Total NPLs		Total NPLs

		(dollars in thousands)

C&I:
C&I - revolving	$	—	$	—	$	—	$	—	-	%
C&I - other		1		8,865		2,643		11,509	35
CRE - owner occupied		—		530		2,150		2,680	8
CRE - non-owner occupied		—		1,213		3,781		4,994	15
Construction and land development		—		2,509		—		2,509	8
Multi-family		—		—		8,172		8,172	25
Direct financing leases		—		206		83		289	1
1-4 family real estate		85		1,866		374		2,325	7
Consumer		—		361		—		361	1
	$	86	$	15,550	$	17,203	$	32,839	100	%

The Company did not recognize any interest income on nonaccrual loans during the years ended December 31, 2024 and 2023.

Note 3. Loans/Leases Receivable (continued)

Changes in the ACL loans/leases by portfolio segment for the years ended December 31, 2024, 2023 and 2022 are presented as follows:


	Year Ended December 31, 2024
					CRE		CRE		Construction				1-4
	C&I -		C&I -		Owner		Non-Owner		and Land		Multi-		Family
	Revolving		Other*		Occupied		Occupied		Development		Family		Real Estate		Consumer		Total

	(dollars in thousands)

Balance, beginning	$	4,224	$	27,460	$	8,223	$	11,581	$	16,856	$	12,463	$	4,917	$	1,476	$	87,200
Change in ACL for the transfer of loans to LHFS		—		—		—		—		—		(4,598)		—		—		(4,598)
Provision		(368)		16,769		(1,066)		(444)		(673)		4,308		17		196		18,739
Charge-offs		—		(12,652)		(10)		—		(1,085)		—		(24)		(198)		(13,969)
Recoveries		—		2,425		—		—		1		—		24		19		2,469
Balance, ending	$	3,856	$	34,002	$	7,147	$	11,137	$	15,099	$	12,173	$	4,934	$	1,493	$	89,841

*Included within the C&I-other column are ACL on leases with a beginning balance of $992 thousand, negative provision of $172 thousand, charge-offs of $353 thousand and recoveries of $113 thousand. ACL on leases was $580 thousand as of December 31, 2024.


	Year Ended December 31, 2023
					CRE		CRE		Construction				1-4
	C&I -		C&I -		Owner		Non-Owner		and Land		Multi-		Family
	Revolving		Other*		Occupied		Occupied		Development		Family		Real Estate		Consumer		Total

	(dollars in thousands)

Balance, beginning	$	4,457	$	27,753	$	9,965	$	11,749	$	14,262	$	13,186	$	4,963	$	1,371	$	87,706
Change in ACL for the transfer of loans to LHFS		—		(5)		—		—		(147)		(3,393)		—		—		(3,545)
Provision		(233)		7,849		(1,523)		(199)		2,789		2,670		(51)		248		11,550
Charge-offs		—		(8,952)		(222)		—		(50)		—		—		(168)		(9,392)
Recoveries		—		815		3		31		2		—		5		25		881
Balance, ending	$	4,224	$	27,460	$	8,223	$	11,581	$	16,856	$	12,463	$	4,917	$	1,476	$	87,200

*Included within the C&I - Other column are ACL on leases with a beginning balance of $970 thousand, provision of $185 thousand, charge-offs of $252 thousand and recoveries of $89 thousand. ACL on leases was $992 thousand as of December 31, 2023.


	Year Ended December 31, 2022
					CRE		CRE		Construction				1-4
	C&I -		C&I -		Owner		Non-Owner		and Land		Multi-		Family
	Revolving		Other**		Occupied		Occupied		Development		Family		Real Estate		Consumer		Total

	(dollars in thousands)

Balance, beginning	$	3,907	$	25,982	$	8,501	$	8,549	$	16,972	$	9,339	$	4,541	$	930	$	78,721
Initial ACL recorded for PCD loans		600		7		2,481		1,076		1,100		481		137		20		5,902
Provision		(50)		7,364		(1,023)		2,220		(2,981)		3,323		306		477		9,636
Charge-offs		—		(6,417)		—		(193)		(829)		—		(21)		(65)		(7,525)
Recoveries		—		817		6		97		—		43		—		9		972
Balance, ending	$	4,457	$	27,753	$	9,965	$	11,749	$	14,262	$	13,186	$	4,963	$	1,371	$	87,706

*Included within the C&I - Other column are ACL on leases with a beginning balance of $1.5 million, provision of $269 thousand, charge-offs of $1.1 million and recoveries of $273 thousand. ACL on leases was $970 thousand as of December 31, 2022.

** Provision of the year ended December 31, 2022 included $11.0 million related to the Guaranty Bank acquisition.

Note 3. Loans/Leases Receivable (continued)

The composition of the ACL loans/leases by portfolio segment based on evaluation method are as follows:


	As of December 31, 2024
	Amortized Cost of Loans Receivable						Allowance for Credit Losses
	Individually		Collectively				Individually		Collectively
	Evaluated for		Evaluated for				Evaluated for		Evaluated for
	Credit Losses		Credit Losses		Total		Credit Losses		Credit Losses		Total

	(dollars in thousands)
C&I :
C&I - revolving	$	3,404	$	384,587	$	387,991	$	97	$	3,759	$	3,856
C&I - other*		38,140		1,493,868		1,532,008		9,437		24,565		34,002
		41,544		1,878,455		1,919,999		9,534		28,324		37,858
CRE - owner occupied		26,822		579,171		605,993		2,136		5,011		7,147
CRE - non-owner occupied		18,163		1,059,689		1,077,852		542		10,595		11,137
Construction and land development		13,346		1,300,197		1,313,543		1,343		13,756		15,099
Multi-family		23		1,132,087		1,132,110		2		12,171		12,173
1-4 family real estate		3,463		584,716		588,179		321		4,613		4,934
Consumer		443		146,285		146,728		45		1,448		1,493
	$	103,804	$	6,680,600	$	6,784,404	$	13,923	$	75,918	$	89,841

*Included within the C&I – other category are leases individually evaluated of $259 thousand with a related allowance for credit losses of $93 thousand and leases collectively evaluated of $16.8 million with a related allowance for credit losses of $487 thousand.


	As of December 31, 2023
	Amortized Cost of Loans Receivable						Allowance for Credit Losses
	Individually		Collectively				Individually		Collectively
	Evaluated for		Evaluated for				Evaluated for		Evaluated for
	Credit Losses		Credit Losses		Total		Credit Losses		Credit Losses		Total

	(dollars in thousands)
C&I :
C&I - revolving	$	4,680	$	320,563	$	325,243	$	632	$	3,592	$	4,224
C&I - other*		20,133		1,492,809		1,512,942		3,642		23,818		27,460
		24,813		1,813,372		1,838,185		4,274		27,410		31,684
CRE - owner occupied		22,709		584,656		607,365		2,426		5,797		8,223
CRE - non-owner occupied		21,886		987,006		1,008,892		661		10,920		11,581
Construction and land development		2,726		1,417,799		1,420,525		809		16,047		16,856
Multi-family		8,206		987,937		996,143		3		12,460		12,463
1-4 family real estate		3,128		541,843		544,971		289		4,628		4,917
Consumer		508		126,827		127,335		56		1,420		1,476
	$	83,976	$	6,459,440	$	6,543,416	$	8,518	$	78,682	$	87,200

*Included within the C&I – other category are leases individually evaluated of $289 thousand with a related allowance for credit losses of $68 thousand and leases collectively evaluated of $30.9 million with a related allowance for credit losses of $924 thousand.

Note 3. Loans/Leases Receivable (continued)

The following table presents the amortized cost basis of collateral dependent loans, by the primary collateral type, which are individually evaluated to determine expected credit losses:



	As of December 31, 2024
					Non
	Commercial		Owner-occupied		Owner-Occupied		Owner Occupied
	Assets		CRE		Real Estate		Real Estate		Securities		Equipment		Other		Total

	(dollars in thousands)
C & I:
C&I - revolving	$	3,404	$	—	$	—	$	—	$	—	$	—	$	—	$	3,404
C&I - other*		3,868		—		506		—		4,760		14,197		14,809		38,140
		7,272		—		506		—		4,760		14,197		14,809		41,544
CRE - owner occupied		—		26,760		—		62		—		—		—		26,822
CRE - non-owner occupied		—		—		18,163		—		—		—		—		18,163
Construction and land development		—		—		13,346		—		—		—		—		13,346
Multi-family		—		—		23		—		—		—		—		23
1-4 family real estate		—		—		176		3,287		—		—		—		3,463
Consumer		—		—		34		394		—		—		15		443
	$	7,272	$	26,760	$	32,248	$	3,743	$	4,760	$	14,197	$	14,824	$	103,804

*Included within the C&I – other category are leases individually evaluated of $259 thousand with primary collateral of equipment.


	As of December 31, 2023
					Non
	Commercial		Owner-occupied		Owner-Occupied		Owner Occupied
	Assets		CRE		Real Estate		Real Estate		Securities		Equipment		Other		Total

	(dollars in thousands)
C & I:
C&I - revolving	$	4,680	$	—	$	—	$	—	$	—	$	—	$	—	$	4,680
C&I - other*		871		—		—		—		5,191		13,249		822		20,133
		5,551		—		—		—		5,191		13,249		822		24,813
CRE - owner occupied		—		22,644		—		65		—		—		—		22,709
CRE - non-owner occupied		—		—		21,886		—		—		—		—		21,886
Construction and land development		—		150		2,576		—		—		—		—		2,726
Multi-family		—		—		8,206		—		—		—		—		8,206
1-4 family real estate		—		—		189		2,939		—		—		—		3,128
Consumer		—		—		119		365		—		—		24		508
	$	5,551	$	22,794	$	32,976	$	3,369	$	5,191	$	13,249	$	846	$	83,976

*Included within the C&I – other category are leases individually evaluated of $289 thousand with primary collateral of equipment.

For all loans, except direct financial leases and equipment financing agreements, the Company’s credit quality indicator consists of internally assigned risk ratings. Each such loan is assigned a risk rating upon origination. The risk rating is reviewed every 15 months, at a minimum, and on an as-needed basis depending on the specific circumstances of the loan.

For certain C&I loans (including equipment financing agreements and direct financing leases), the Company’s credit quality indicator is performance determined by delinquency status. Delinquency status is updated daily by the Company’s loan system. For years prior to 2024, certain C&I loans (including equipment financing agreements and direct financing leases), certain construction and land development, certain 1-4 family real estate loans, and certain consumer loans, the Company’s credit quality indicator was performance determined by delinquency status. Delinquency status is updated daily by the Company’s loan system.

Note 3. Loans/Leases Receivable (continued)

The following tables show the credit quality indicator of loans by class of receivable and year of origination as of December 31, 2024:


	2024
	Term Loans
	Amortized Cost Basis by Origination Year
													Revolving
													Loans
Internally Assigned													Amortized
Risk Rating	2024		2023		2022		2021		2020		Prior		Cost Basis		Total

	(dollars in thousands)
C&I - revolving
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	368,318	$	368,318
Special Mention		—		—		—		—		—		—		16,369		16,369
Substandard		—		—		—		—		—		—		3,304		3,304
Doubtful		—		—		—		—		—		—		—		—
Total C&I - revolving	$	—	$	—	$	—	$	—	$	—	$	—	$	387,991	$	387,991

C&I - other
Pass	$	324,649	$	348,843	$	204,275	$	82,601	$	49,130	$	155,191	$	—	$	1,164,689
Special Mention		6,517		5,534		2,855		4,799		2,548		725		—		22,978
Substandard		17,003		538		507		1,272		—		4,780		—		24,100
Doubtful		—		—		—		—		—		—		—		—
Total C&I - other	$	348,169	$	354,915	$	207,637	$	88,672	$	51,678	$	160,696	$	—	$	1,211,767

CRE - owner occupied
Pass	$	65,054	$	104,442	$	117,215	$	102,506	$	95,349	$	69,382	$	13,327	$	567,275
Special Mention		5,589		234		739		6,964		822		1,829		—		16,177
Substandard		3,669		—		980		309		16,582		1,001		—		22,541
Doubtful		—		—		—		—		—		—		—		—
Total CRE - owner occupied	$	74,312	$	104,676	$	118,934	$	109,779	$	112,753	$	72,212	$	13,327	$	605,993

CRE - non-owner occupied
Pass	$	194,510	$	204,599	$	272,296	$	164,948	$	96,216	$	95,117	$	20,548	$	1,048,234
Special Mention		4,406		—		55		—		—		6,844		150		11,455
Substandard		80		3,652		550		—		1,916		11,965		—		18,163
Doubtful		—		—		—		—		—		—		—		—
Total CRE - non-owner occupied	$	198,996	$	208,251	$	272,901	$	164,948	$	98,132	$	113,926	$	20,698	$	1,077,852

Construction and land development
Pass	$	435,373	$	524,375	$	235,987	$	66,409	$	3,313	$	—	$	31,176	$	1,296,633
Special Mention		3,863		—		—		75		—		—		—		3,938
Substandard		4,394		124		1,082		7,372		—		—		—		12,972
Doubtful		—		—		—		—		—		—		—		—
Total Construction and land development	$	443,630	$	524,499	$	237,069	$	73,856	$	3,313	$	—	$	31,176	$	1,313,543

Multi-family
Pass	$	137,806	$	138,011	$	279,256	$	185,872	$	217,697	$	165,867	$	7,578	$	1,132,087
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		23		—		—		—		23
Doubtful		—		—		—		—		—		—		—		—
Total Multi-family	$	137,806	$	138,011	$	279,256	$	185,895	$	217,697	$	165,867	$	7,578	$	1,132,110

1-4 family real estate
Pass	$	121,918	$	115,491	$	89,073	$	108,998	$	77,540	$	64,015	$	5,106	$	582,141
Special Mention		380		146		—		547		—		1,582		—		2,655
Substandard		91		327		981		634		378		944		28		3,383
Doubtful		—		—		—		—		—		—		—		—
Total 1-4 family real estate	$	122,389	$	115,964	$	90,054	$	110,179	$	77,918	$	66,541	$	5,134	$	588,179

Consumer
Pass	$	11,513	$	13,375	$	6,082	$	1,254	$	2,435	$	1,519	$	110,042	$	146,220
Special Mention		—		—		—		—		—		—		64		64
Substandard		34		208		39		—		—		97		66		444
Doubtful		—		—		—		—		—		—		—		—
Total Consumer	$	11,547	$	13,583	$	6,121	$	1,254	$	2,435	$	1,616	$	110,172	$	146,728

Total	$	1,336,849	$	1,459,899	$	1,211,972	$	734,583	$	563,926	$	580,858	$	576,076	$	6,464,163

Note 3. Loans/Leases Receivable (continued)


	2024
	Term Loans
	Amortized Cost Basis by Origination Year																	Revolving
																		Loans
																		Amortized
Delinquency Status *	2024			2023			2022			2021			2020			Prior		Cost Basis		Total

	(dollars in thousands)
C&I - other
Performing	$	109,373	$		99,204	$		57,819	$		18,853	$		4,107	$		278	$	—	$	289,634
Nonperforming		1,028			4,689			5,537			2,076			201			—		—		13,531
Total C&I - other	$	110,401		$	103,893		$	63,356		$	20,929		$	4,308		$	278	$	—	$	303,165

Direct financing leases
Performing	$	1,742	$		6,099	$		6,583	$		1,413	$		569	$		411	$	—	$	16,817
Nonperforming		—			103			70			39			46			1		—		259
Total Direct financing leases	$	1,742		$	6,202		$	6,653		$	1,452		$	615		$	412	$	—	$	17,076

Total	$	112,143		$	110,095		$	70,009		$	22,381		$	4,923		$	690	$	—	$	320,241

*Performing = loans/leases accruing and less than 90 days past due. Nonperforming = loans/leases on nonaccrual and accruing loans/leases that are greater than or equal to 90 days past due.

The following table shows the gross charge-offs of loans and leases by class of receivable and year of origination for the years ended December 31, 2024 and 2023:


	Year Ended December 31, 2024														Year Ended December 31, 2023
	Gross Charge-off by Origination Year														Gross Charge-off by Origination Year
Classes of Loans/Leases	2024		2023		2022		2021		2020		Prior		Total		2023		2022		2021		2020		2019		Prior		Total

	(dollars in thousands)														(dollars in thousands)
C&I:
C&I - revolving	$	—		—		—		—		—		—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
C&I - other		245		2,701		5,537		3,227		312		277		12,299		142		5,465		1,753		1,083		255		2		8,700
CRE - owner occupied		—		—		—		—		—		10		10		—		—		222		—		—		—		222
CRE - non-owner occupied		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Construction and land development		—		—		285		800		—		—		1,085		—		50		—		—		—		—		50
Multi-family		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Direct financing leases		—		—		199		24		104		26		353		—		78		103		41		29		1		252
1-4 family real estate		—		21		—		—		—		3		24		—		—		—		—		—		—		—
Consumer		10		78		49		45		15		1		198		28		108		24		1		5		2		168
	$	255	$	2,800	$	6,070	$	4,096	$	431	$	317	$	13,969	$	170	$	5,701	$	2,102	$	1,125	$	289	$	5	$	9,392

Note 3. Loans/Leases Receivable (continued)

The following tables show the credit quality indicator of loans by class of receivable and year of origination as of December 31, 2023:


	2023
	Term Loans
	Amortized Cost Basis by Origination Year
													Revolving
													Loans
Internally Assigned													Amortized
Risk Rating	2023		2022		2021		2020		2019		Prior		Cost Basis		Total

	(dollars in thousands)
C&I - revolving
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	294,449	$	294,449
Special Mention		—		—		—		—		—		—		26,289		26,289
Substandard		—		—		—		—		—		—		4,505		4,505
Doubtful		—		—		—		—		—		—		—		—
Total C&I - revolving	$	—	$	—	$	—	$	—	$	—	$	—	$	325,243	$	325,243

C&I - other
Pass	$	430,764	$	301,225	$	128,057	$	68,882	$	62,149	$	132,171	$	—	$	1,123,248
Special Mention		11,617		8,777		5,572		3,088		1,024		386		—		30,464
Substandard		14		81		625		443		2,108		5,320		—		8,591
Doubtful		—		—		—		—		—		—		—		—
Total C&I - other	$	442,395	$	310,083	$	134,254	$	72,413	$	65,281	$	137,877	$	—	$	1,162,303

CRE - owner occupied
Pass	$	90,708	$	124,388	$	139,598	$	109,483	$	28,702	$	58,214	$	12,959	$	564,052
Special Mention		5,091		711		8,689		5,567		466		1,828		—		22,352
Substandard		1,955		564		24		15,978		1,312		1,128		—		20,961
Doubtful		—		—		—		—		—		—		—		—
Total CRE - owner occupied	$	97,754	$	125,663	$	148,311	$	131,028	$	30,480	$	61,170	$	12,959	$	607,365

CRE - non-owner occupied
Pass	$	200,214	$	276,055	$	195,013	$	119,428	$	72,136	$	78,346	$	7,406	$	948,598
Special Mention		16,842		58		223		12,057		2,359		6,719		150		38,408
Substandard		3,805		1,200		—		1,989		14,892		—		—		21,886
Doubtful		—		—		—		—		—		—		—		—
Total CRE - non-owner occupied	$	220,861	$	277,313	$	195,236	$	133,474	$	89,387	$	85,065	$	7,556	$	1,008,892

Construction and land development
Pass	$	467,045	$	485,376	$	271,881	$	151,091	$	1,911	$	4,137	$	30,304	$	1,411,745
Special Mention		6,054		—		—		—		—		—		—		6,054
Substandard		—		1,517		1,209		—		—		—		—		2,726
Doubtful		—		—		—		—		—		—		—		—
Total Construction and land development	$	473,099	$	486,893	$	273,090	$	151,091	$	1,911	$	4,137	$	30,304	$	1,420,525

Multi-family
Pass	$	180,971	$	195,939	$	170,893	$	239,410	$	102,070	$	96,897	$	162	$	986,342
Special Mention		1,595		—		—		—		—		—		—		1,595
Substandard		—		—		8,206		—		—		—		—		8,206
Doubtful		—		—		—		—		—		—		—		—
Total Multi-family	$	182,566	$	195,939	$	179,099	$	239,410	$	102,070	$	96,897	$	162	$	996,143

1-4 family real estate
Pass	$	133,923	$	103,460	$	130,724	$	89,642	$	25,914	$	54,850	$	3,329	$	541,842
Special Mention		28		—		59		—		—		—		—		87
Substandard		144		215		815		637		519		712		—		3,042
Doubtful		—		—		—		—		—		—		—		—
Total 1-4 family real estate	$	134,095	$	103,675	$	131,598	$	90,279	$	26,433	$	55,562	$	3,329	$	544,971

Consumer
Pass	$	17,722	$	9,405	$	2,573	$	3,024	$	622	$	1,842	$	91,580	$	126,768
Special Mention		—		—		—		—		—		—		59		59
Substandard		175		119		12		12		—		133		57		508
Doubtful		—		—		—		—		—		—		—		—
Total Consumer	$	17,897	$	9,524	$	2,585	$	3,036	$	622	$	1,975	$	91,696	$	127,335

Total	$	1,568,667	$	1,509,090	$	1,064,173	$	820,731	$	316,184	$	442,683	$	471,249	$	6,192,777

Note 3. Loans/Leases Receivable (continued)


	2023
	Term Loans
	Amortized Cost Basis by Origination Year												Revolving
													Loans
													Amortized
Delinquency Status *	2023		2022		2021		2020		2019		Prior		Cost Basis		Total

	(dollars in thousands)
C&I - other
Performing	$	149,216	$	103,804	$	40,003	$	12,590	$	2,539	$	132	$	—	$	308,284
Nonperforming		1,533		6,138		3,049		373		92		6		—		11,191
Total C&I - other	$	150,749	$	109,942	$	43,052	$	12,963	$	2,631	$	138	$	—	$	319,475

Direct financing leases
Performing	$	12,217	$	11,170	$	3,005	$	2,631	$	1,561	$	291	$	—	$	30,875
Nonperforming		—		50		43		176		20		—		—		289
Total Direct financing leases	$	12,217	$	11,220	$	3,048	$	2,807	$	1,581	$	291	$	—	$	31,164

Total	$	162,966	$	121,162	$	46,100	$	15,770	$	4,212	$	429	$	—	$	350,639

All loan and lease modifications to borrowers experiencing financial difficulty during 2024 and 2023, as well as TDR balances and activity during 2022, were immaterial.

Changes in the ACL for OBS exposures for the years ended December 31, 2024 and 2023 is presented as follows:


	For the Year Ended
	December 31, 2024		December 31, 2023		December 31, 2022

	(dollars in thousands)

Balance, beginning	$	9,529	$	5,552	$	6,886
Provisions (credited) to expense		(1,256)		3,977		(1,334)
Balance, ending	$	8,273	$	9,529	$	5,552

Loans are made in the normal course of business to directors, executive officers, and their related interests. All such loans, in the opinion of management, were made in the ordinary course of business, on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with persons not related to the lenders and did not involve more than the normal risk of collectability or present other unfavorable

Note 3. Loans/Leases Receivable (continued)

features. An analysis of the changes in the aggregate committed amount of loans to insiders greater than or equal to $60,000 during the years ended December 31, 2024, 2023 and 2022, is as follows:


	2024		2023		2022

	(dollars in thousands)

Balance, beginning	$	125,963	$	113,200	$	100,898
Net increase (decrease) due to change in related parties		(8,665)		2,200		3,496
Advances		14,612		23,977		51,683
Repayments		(16,349)		(13,414)		(42,877)
Balance, ending	$	115,561	$	125,963	$	113,200

The Company’s loan portfolio includes a geographic concentration in the Midwest. Additionally, the loan portfolio includes a concentration of loans in certain industries as of December 31, 2024 and 2023 as follows:


	2024				2023
			Percentage of				Percentage of
			Total				Total
Industry Name	Balance		Loans/Leases		Balance		Loans/Leases

	(dollars in thousands)

Lessors of Residential Buildings*	$	2,648,346	39	%	$	2,328,875	36	%
Lessors of Non-Residential Buildings		715,668	11	%		673,719	10	%

* Includes loans on LIHTC projects