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Loans (Tables)
 9 Months Ended
Sep. 30, 2024
Receivables [Abstract]  
Schedule of Loans
Loans consist of the following:
(Dollars in thousands)September 30, 2024December 31, 2023
Loans held for sale$7,631 $16,852 
LHFI:
Loans secured by real estate:
Commercial real estate(1)
$2,524,764 $2,442,734 
Construction/land/land development991,545 1,070,225 
Residential real estate1,848,330 1,734,935 
Total real estate5,364,639 5,247,894 
Commercial and industrial2,074,037 2,059,460 
Mortgage warehouse lines of credit495,188 329,966 
Consumer22,926 23,624 
Total LHFI(2)
7,956,790 7,660,944 
Less: Allowance for loan credit losses (“ALCL”)
95,989 96,868 
LHFI, net$7,860,801 $7,564,076 
____________________________
(1)Includes owner occupied commercial real estate of $991.7 million and $953.8 million at September 30, 2024, and December 31, 2023, respectively.
(2)Includes unamortized purchase accounting adjustment and net deferred loan fees of $10.5 million and $11.8 million at September 30, 2024, and December 31, 2023, respectively.
Schedule of Recorded Investment in Loans by Credit Quality Indicator
The following table reflects recorded investments in loans by credit quality indicator and origination year at September 30, 2024, and gross charge-offs for the nine months ended September 30, 2024, excluding loans held for sale. Loans acquired are shown in the table by origination year, not merger date. The Company had an immaterial amount of revolving loans converted to term loans at September 30, 2024.
Term Loans
Amortized Cost Basis by Origination Year
(Dollars in thousands)20242023202220212020PriorRevolving Loans Amortized Cost BasisTotal
Commercial real estate:
Pass$171,343 $365,817 $947,388 $441,211 $226,544 $294,500 $59,202 $2,506,005 
Special mention1,248 — 248 27 947 1,261 250 3,981 
Classified2,756 522 1,191 3,357 1,792 4,903 257 14,778 
Total commercial real estate loans$175,347 $366,339 $948,827 $444,595 $229,283 $300,664 $59,709 $2,524,764 
Year-to-date gross charge-offs$— $36 $193 $— $251 $— $— $480 
Construction/land/land development:
Pass$111,845 $240,725 $375,233 $163,172 $17,844 $5,180 $50,600 $964,599 
Special mention— — — — — — 112 112 
Classified2,733 2,275 13,398 5,119 739 228 2,342 26,834 
Total construction/land/land development loans$114,578 $243,000 $388,631 $168,291 $18,583 $5,408 $53,054 $991,545 
Year-to-date gross charge-offs$— $— $— $— $— $— $— $— 
Residential real estate:
Pass$153,935 $323,765 $493,593 $314,677 $225,524 $194,194 $109,826 $1,815,514 
Special mention— — — 18,342 127 310 — 18,779 
Classified1,187 1,340 2,096 3,163 1,161 4,722 368 14,037 
Total residential real estate loans$155,122 $325,105 $495,689 $336,182 $226,812 $199,226 $110,194 $1,848,330 
Year-to-date gross charge-offs$— $— $— $— $— $11 $— $11 
Commercial and industrial:
Pass$215,307 $302,164 $185,177 $103,631 $23,436 $58,308 $1,119,291 $2,007,314 
Special mention— 75 12,302 — — 560 2,356 15,293 
Classified6,690 4,930 8,406 5,748 720 658 24,278 51,430 
Total commercial and industrial loans$221,997 $307,169 $205,885 $109,379 $24,156 $59,526 $1,145,925 $2,074,037 
Year-to-date gross charge-offs$797 $1,159 $1,008 $3,858 $162 $406 $13,654 $21,044 
Mortgage Warehouse Lines of Credit:
Pass$— $— $— $— $— $— $495,188 $495,188 
Year-to-date gross charge-offs$— $— $— $— $— $— $— $— 
Consumer:
Pass$8,279 $5,199 $1,701 $517 $230 $88 $6,505 $22,519 
Classified18 14 126 — — 5 244 407 
Total consumer loans$8,297 $5,213 $1,827 $517 $230 $93 $6,749 $22,926 
Year-to-date gross charge-offs$— $8 $28 $3 $— $— $41 $80 
The following table reflects recorded investments in loans by credit quality indicator and origination year at December 31, 2023, and gross charge-offs for the year ended December 31, 2023, excluding loans held for sale. Loans acquired are shown in the table by origination year, not merger date. The Company had an immaterial amount of revolving loans converted to term loans at December 31, 2023.
Term Loans
Amortized Cost Basis by Origination Year
(Dollars in thousands)20232022202120202019PriorRevolving Loans Amortized Cost BasisTotal
Commercial real estate:
Pass$333,887 $885,234 $470,252 $253,700 $204,421 $188,532 $77,993 $2,414,019 
Special mention— — 308 — — 7,950 — 8,258 
Classified726 4,285 3,212 1,765 524 9,945 — 20,457 
Total commercial real estate loans$334,613 $889,519 $473,772 $255,465 $204,945 $206,427 $77,993 $2,442,734 
Year-to-date gross charge-offs$— $— $— $— $— $42 $— $42 
Construction/land/land development:
Pass$259,502 $461,373 $214,526 $21,309 $7,221 $25,460 $42,700 $1,032,091 
Special mention746 10,462 19,811 — — — — 31,019 
Classified191 3,132 41 240 662 560 2,289 7,115 
Total construction/land/land development loans$260,439 $474,967 $234,378 $21,549 $7,883 $26,020 $44,989 $1,070,225 
Year-to-date gross charge-offs$— $— $— $— $— $— $— $— 
Residential real estate:
Pass$332,874 $549,504 $289,289 $237,813 $79,499 $142,265 $91,972 $1,723,216 
Special mention250 — — 141 — — — 391 
Classified689 1,985 1,439 407 1,367 4,949 492 11,328 
Total residential real estate loans$333,813 $551,489 $290,728 $238,361 $80,866 $147,214 $92,464 $1,734,935 
Year-to-date gross charge-offs$— $— $— $5 $— $22 $— $27 
Commercial and industrial:
Pass$399,485 $272,152 $160,636 $36,995 $57,562 $48,523 $1,035,021 $2,010,374 
Special mention498 6,383 — — — — 650 7,531 
Classified3,583 1,676 12,908 371 470 222 22,325 41,555 
Total commercial and industrial loans$403,566 $280,211 $173,544 $37,366 $58,032 $48,745 $1,057,996 $2,059,460 
Year-to-date gross charge-offs$203 $328 $233 $141 $539 $679 $9,710 $11,833 
Mortgage Warehouse Lines of Credit:
Pass$— $— $— $— $— $— $329,966 $329,966 
Year-to-date gross charge-offs$— $— $— $— $— $— $— $— 
Consumer:
Pass$11,053 $3,567 $1,040 $399 $470 $17 $6,988 $23,534 
Classified35 42 10 — 2 — 1 90 
Total consumer loans$11,088 $3,609 $1,050 $399 $472 $17 $6,989 $23,624 
Year-to-date gross charge-offs$3 $102 $7 $— $— $2 $33 $147 
Schedule of Loan Portfolio Aging Analysis
The following tables present the Company’s loan portfolio aging analysis at the dates indicated:
September 30, 2024
(Dollars in thousands)30-59 Days Past Due60-89 Days Past DueLoans Past Due 90 Days or MoreTotal Past DueCurrent LoansTotal Loans ReceivableAccruing Loans 90 or More Days Past Due
Loans secured by real estate:
Commercial real estate
$893 $59 $789 $1,741 $2,523,023 $2,524,764 $— 
Construction/land/land development
44 4,789 51 4,884 986,661 991,545 — 
Residential real estate1,341 7,330 5,289 13,960 1,834,370 1,848,330 — 
Total real estate2,278 12,178 6,129 20,585 5,344,054 5,364,639 — 
Commercial and industrial9,053 1,554 7,233 17,840 2,056,197 2,074,037 — 
Mortgage warehouse lines of credit
— — — — 495,188 495,188 — 
Consumer60 16 337 413 22,513 22,926 — 
Total LHFI$11,391 $13,748 $13,699 $38,838 $7,917,952 $7,956,790 $— 
December 31, 2023
(Dollars in thousands)30-59 Days Past Due60-89 Days Past DueLoans Past Due 90 Days or MoreTotal Past DueCurrent LoansTotal Loans ReceivableAccruing Loans 90 or More Days Past Due
Loans secured by real estate:
Commercial real estate$2,264 $— $— $2,264 $2,440,470 $2,442,734 $— 
Construction/land/land development
834 27 13 874 1,069,351 1,070,225 — 
Residential real estate8,055 1,326 5,960 15,341 1,719,594 1,734,935 — 
Total real estate11,153 1,353 5,973 18,479 5,229,415 5,247,894 — 
Commercial and industrial1,221 713 5,417 7,351 2,052,109 2,059,460 — 
Mortgage warehouse lines of credit— — — — 329,966 329,966 — 
Consumer200 10 3 213 23,411 23,624 — 
Total LHFI$12,574 $2,076 $11,393 $26,043 $7,634,901 $7,660,944 $— 
Schedule of Allowance for Loan Losses by Portfolio Segment
The following tables detail activity in the ALCL by portfolio segment. Accrued interest of $36.1 million and $33.0 million was not included in the book value for the purposes of calculating the allowance at September 30, 2024 and 2023, respectively. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.
Three Months Ended September 30, 2024
Commercial Real EstateConstruction/ Land/ Land DevelopmentResidential Real EstateCommercial and IndustrialMortgage Warehouse Lines of CreditConsumerTotal
(Dollars in thousands)
Beginning balance$17,244 $9,274 $11,780 $61,184 $676 $707 $100,865 
Charge-offs— — 11 11,195 — 20 11,226 
Recoveries21 — 4 1,680 — 1 1,706 
Provision(1)
(435)(546)302 5,070 (13)266 4,644 
Ending balance$16,830 $8,728 $12,075 $56,739 $663 $954 $95,989 
Average balance$2,507,566 $1,019,302 $1,824,725 $2,071,984 $484,680 $22,739 $7,930,996 
Net charge-offs to loan average balance (annualized)— %— %— %1.83 %— %0.33 %0.48 %
____________________________
(1)The $4.6 million provision for credit losses on the consolidated statements of income includes a $4.6 million provision for loan credit losses, a $36,000 net benefit provision for off-balance sheet commitments and a $5,000 net benefit provision for held to maturity securities credit losses for the three months ended September 30, 2024.

Three Months Ended September 30, 2023
Commercial Real EstateConstruction/ Land/ Land DevelopmentResidential Real EstateCommercial and IndustrialMortgage Warehouse Lines of CreditConsumerTotal
(Dollars in thousands)
Beginning balance$20,839 $8,729 $9,018 $54,173 $817 $777 $94,353 
Charge-offs— — — 3,187 — 15 3,202 
Recoveries28 3 3 477 — 5 516 
Provision(1)
(1,758)613 1,048 3,990 (359)(24)3,510 
Ending balance$19,109 $9,345 $10,069 $55,453 $458 $743 $95,177 
Average balance$2,428,969 $1,044,180 $1,663,291 $2,024,675 $376,275 $23,704 $7,561,094 
Net charge-offs to loan average balance (annualized)— %— %— %0.53 %— %0.17 %0.14 %
____________________________
(1)The $3.5 million provision for credit losses on the consolidated statements of income includes a $3.5 million provision for loan credit losses, a $50,000 provision for off-balance sheet commitments and a $45,000 net benefit provision for held to maturity securities credit losses for the three months ended September 30, 2023.
Nine Months Ended September 30, 2024
Commercial Real EstateConstruction/ Land/ Land DevelopmentResidential Real EstateCommercial and IndustrialMortgage Warehouse Lines of CreditConsumerTotal
(Dollars in thousands)
Beginning balance$19,625 $9,990 $10,619 $55,330 $529 $775 $96,868 
Charge-offs480 — 11 21,044 — 80 21,615 
Recoveries318 — 12 6,228 — 9 6,567 
Provision(1)
(2,633)(1,262)1,455 16,225 134 250 14,169 
Ending balance$16,830 $8,728 $12,075 $56,739 $663 $954 $95,989 
Average balance$2,481,274 $1,069,360 $1,784,035 $2,107,195 $407,553 $22,818 $7,872,235 
Net charge-offs to loan average balance (annualized)0.01 %— %— %0.94 %— %0.42 %0.26 %
_________________________
(1)The $12.8 million provision for credit losses on the consolidated statement of income includes a $14.2 million provision for loan losses, a $1.3 million and $11,000 net benefit provision for off-balance sheet commitments and held to maturity securities credit losses, respectively, for the nine months ended September 30, 2024.
Nine Months Ended September 30, 2023
Commercial Real EstateConstruction/ Land/ Land DevelopmentResidential Real EstateCommercial and IndustrialMortgage Warehouse Lines of CreditConsumerTotal
(Dollars in thousands)
Beginning balance$19,772 $7,776 $8,230 $50,148 $379 $856 $87,161 
Charge-offs42 — 27 8,070 — 107 8,246 
Recoveries113 3 13 2,189 — 12 2,330 
Provision(1)
(734)1,566 1,853 11,186 79 (18)13,932 
Ending balance$19,109 $9,345 $10,069 $55,453 $458 $743 $95,177 
Average balance$2,393,028 $997,296 $1,599,803 $2,051,272 $329,205 $24,836 $7,395,440 
Net charge-offs to loan average balance (annualized)— %— %— %0.38 %— %0.51 %0.11 %
____________________________
(1)The $14.0 million provision for credit losses on the consolidated statements of income includes a $13.9 million provision for loan credit losses, a $95,000 provision for off-balance sheet commitments and a $9,000 net benefit provision for held to maturity securities credit losses for the nine months ended September 30, 2023.
Schedule of Amortized Cost Basis of Collateral Dependent Loans
The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related ALCL allocated to these loans.
September 30, 2024
(Dollars in thousands)Commercial Real EstateConstruction/ Land/ Land DevelopmentResidential Real EstateCommercial and IndustrialMortgage Warehouse Lines of CreditConsumerTotal
Real Estate $— $20 $10,890 $— $— $— $10,910 
Other— — — — — 93 93 
Total$— $20 $10,890 $— $— $93 $11,003 
ALCL Allocation$— $— $32 $— $— $— $32 
December 31, 2023
(Dollars in thousands)Commercial Real EstateConstruction/ Land/ Land DevelopmentResidential Real EstateCommercial and IndustrialMortgage Warehouse Lines of CreditConsumerTotal
Real Estate $605 $— $4,029 $— $— $— $4,634 
Equipment— — — 119 — — 119 
Other— — — 258 — — 258 
Total$605 $— $4,029 $377 $— $— $5,011 
ALCL Allocation$— $— $— $— $— $— $— 
Schedule of Non-performing (Nonaccrual) Loans Held for Investment
Nonaccrual LHFI was as follows:
Nonaccrual With No
Allowance for Credit Loss		Total Nonaccrual
(Dollars in thousands)
Loans secured by real estate:
September 30, 2024December 31, 2023September 30, 2024December 31, 2023
Commercial real estate$2,449 $746 $2,776 $786 
Construction/land/land development
19,176 96 26,291 305 
Residential real estate12,410 5,695 14,313 13,037 
Total real estate34,035 6,537 43,380 14,128 
Commercial and industrial
2,915 4,706 20,486 15,897 
Consumer93 — 407 90 
Total nonaccrual loans$37,043 $11,243 $64,273 $30,115 
Schedule of Loans Classified as Troubled Debt Restructurings (TDRs)
The tables below summarize modifications made to borrowers experiencing financial difficulty by loan and modification type during the three months ended September 30, 2024 and 2023.
Amortized Cost Basis at September 30, 2024
Term Extension
(Dollars in thousands)Amortized Cost% of Loans
Loans secured by real estate:
Commercial real estate$257 0.01 %
Construction/land/land development346 0.03 
Residential real estate1,769 0.10 
Total real estate2,372 0.04 
Commercial and industrial(1)
10,689 0.52 
Total$13,061 0.16 
____________________________
(1)Does not include the loans impacted by the questioned activity as a result of not meeting the modification criteria as described in the Accounting Standards Codification 310-10-50-36, “Modifications”.
Amortized Cost Basis at September 30, 2023
Term ExtensionCombination:
Term Extension and Interest Rate Reduction		Other-Than-Insignificant Payment Delay
(Dollars in thousands)Amortized Cost% of LoansAmortized Cost% of LoansAmortized Cost% of Loans
Loans secured by real estate:
Commercial real estate$7,507 0.31 %$— — %$427 0.02 %
Construction/land/land development3,807 0.35 — — — — 
Residential real estate745 0.04 — — — — 
Total real estate12,059 0.23 — — 427 0.01 
Commercial and industrial13,935 0.68 923 0.04 53 — 
Total$25,994 0.34 $923 0.01 $480 0.01 
The tables below summarize modifications made to borrowers experiencing financial difficulty by loan and modification type during the nine months ended September 30, 2024 and 2023.
Amortized Cost Basis at September 30, 2024
Term ExtensionCombination:
Term Extension and Interest Rate Reduction		Other-Than-Insignificant Payment Delay
(Dollars in thousands)Amortized Cost% of LoansAmortized Cost% of LoansAmortized Cost% of Loans
Loans secured by real estate:
Commercial real estate$257 0.01 %$— — %$— — %
Construction/land/land development346 0.03 — — — — 
Residential real estate1,998 0.11 132 0.01 — — 
Total real estate2,601 0.05 132 — — — 
Commercial and industrial(1)
15,331 0.74 — — 35 — 
Consumer— — 4 0.02 — — 
Total$17,932 0.23 $136 — $35 — 
____________________________
(1)Does not include the loans impacted by the questioned activity as a result of not meeting the modification criteria as described in the Accounting Standards Codification 310-10-50-36, “Modifications”.
Amortized Cost Basis at September 30, 2023
Term ExtensionCombination:
Term Extension and Interest Rate Reduction		Other-Than-Insignificant Payment Delay
(Dollars in thousands)Amortized Cost% of LoansAmortized Cost% of LoansAmortized Cost% of Loans
Loans secured by real estate:
Commercial real estate$7,853 0.32 %$— — %$427 0.02 %
Construction/land/land development3,808 0.35 — — — — 
Residential real estate2,477 0.15 — — — — 
Total real estate14,138 0.27 — — 427 0.01 
Commercial and industrial15,562 0.76 1,091 0.05 53 — 
Total$29,700 0.39 $1,091 0.01 $480 0.01 
The following tables describe the financial effects of the modifications made to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2024 and 2023.
Three Months Ended September 30, 2024
Term Extension
Commercial real estate
Added a weighted average 29.0 months to the life of the modified loans
Construction/land/land development
Added a weighted average 4.1 months to the life of the modified loans
Residential real estate
Added a weighted average 8.7 months to the life of the modified loans
Commercial and industrial(1)
Added a weighted average 4.4 months to the life of the modified loans
____________________________
(1)Does not include the loans impacted by the questioned activity as a result of not meeting the modification criteria as described in the Accounting Standards Codification 310-10-50-36, “Modifications”.
Three Months Ended September 30, 2023
Interest Rate ReductionTerm ExtensionOther-Than-Insignificant Payment Delay
Commercial real estateN/A
Added a weighted average 10.1 months to the life of the modified loans
Delayed payment of weighted average 6 months
Construction/land/land developmentN/A
Added a weighted average 8.6 months to the life of the modified loans
N/A
Residential real estateN/A
Added a weighted average 18.4 months to the life of the modified loans
N/A
Commercial and industrial
Reduced weighted average contractual interest rate from 10.1% to 9.5%
Added a weighted average 6.7 months to the life of the modified loans
Delayed payment of weighted average 6 months
Nine Months Ended September 30, 2024
Interest Rate ReductionTerm ExtensionOther-Than-Insignificant Payment Delay
Commercial real estateN/A
Added a weighted average 32.0 months to the life of the modified loans
N/A
Construction/land/land developmentN/A
Added a weighted average 6.6 months to the life of the modified loans
N/A
Residential real estate
Reduced weighted average contractual interest rate from 9.0% to 8.0%
Added a weighted average 10.4 months to the life of the modified loans
N/A
Commercial and industrial(1)
N/A
Added a weighted average 5.9 months to the life of the modified loans
Delayed payment of weighted average 2.0 months
Consumer
Reduced weighted average contractual interest rate from 9.5% to 6.0%
Added a weighted average 5.0 months to the life of the modified loans
N/A
____________________________
(1)Does not include the loans impacted by the questioned activity as a result of not meeting the modification criteria as described in the Accounting Standards Codification 310-10-50-36, “Modifications”.
Nine Months Ended September 30, 2023
Interest Rate ReductionTerm ExtensionOther-Than-Insignificant Payment Delay
Commercial real estateN/A
Added a weighted average 12.1 months to the life of the modified loans
Delayed payment of weighted average 6 months
Construction/land/land developmentN/A
Added a weighted average 13.1 months to the life of the modified loans
N/A
Residential real estateN/A
Added a weighted average 9.3 months to the life of the modified loans
N/A
Commercial and industrial
Reduced weighted average contractual interest rate from 9.9% to 9.0%
Added a weighted average 9.0 months to the life of the modified loans
Delayed payment of weighted average 6 months
The following table depicts the performance of loans that have been modified during the last twelve months ended September 30, 2024.
Payment Status (Amortized Cost Basis)
September 30, 2024
(Dollars in thousands)Current30-89 Days Past Due90 Days or More Past Due
Loans secured by real estate:
Commercial real estate
$272 $10 $— 
Construction/land/land development
452 — — 
Residential real estate936 1,485 115 
Total real estate1,660 1,495 115 
Commercial and industrial(1)
12,865 618 2,007 
Consumer4 — — 
Total LHFI$14,529 $2,113 $2,122 
____________________________
(1)Does not include the loans impacted by the questioned activity as a result of not meeting the modification criteria as described in the Accounting Standards Codification 310-10-50-36, “Modifications”.
The following table depicts the performance of loans that have been modified during the nine months ended September 30, 2023.
Payment Status (Amortized Cost Basis)
September 30, 2023
(Dollars in thousands)Current30-89 Days Past Due90 Days or More Past Due
Loans secured by real estate:
Commercial real estate
$8,280 $— $— 
Construction/land/land development
3,808 — — 
Residential real estate2,195 282 — 
Total real estate14,283 282 — 
Commercial and industrial16,705 — 
Total LHFI$30,988 $282 $— 
Schedule of Amortized Cost of Loans with Payment Default
The table below provides the details of loans to borrowers experiencing financial difficulty that were modified within the last twelve months and defaulted during the three and nine months ended September 30, 2024. There were no loans to borrowers experiencing financial difficulty that defaulted during the nine months ended September 30, 2023, that were modified within the nine months ended September 30, 2023.
Term Extension
(Dollars in thousands)
Amortized Cost at September 30, 2024
Default Amount During the Three and Nine Months Ended September 30, 2024
Residential real estate$115 $115 
Commercial and industrial(1)
2,007 9,453 
Total$2,122 $9,568 
____________________________
(1)Does not include the loans impacted by the questioned activity as a result of not meeting the modification criteria as described in the Accounting Standards Codification 310-10-50-36, “Modifications”.