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Note 3 - Loans and Allowance for Credit Losses | 3 Months Ended
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Mar. 31, 2023
Notes to Financial Statements |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] |
3. | LOANS AND ALLOWANCE FOR CREDIT LOSSES
Our total loans at March 31, 2023 were $3.97 billion compared to $3.92 billion at December 31, 2022, an increase of $48.9 million, or 1.2%. The components of our loan portfolio disaggregated by class of loan within the loan portfolio segments at March 31, 2023 and December 31, 2022, and the percentage change in loans from the end of 2022 to the end of the first quarter of 2023, are as follows:
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Percent |
|  | March 31, 2023 |  |  | December 31, 2022 |  |  | Increase |
|  | Balance |  |  | % |  |  | Balance |  |  | % |  |  | (Decrease) |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial (1) |  | $ | 1,173,440,000 |  |  |  | 29.6 | % |  | $ | 1,185,083,000 |  |  |  | 30.3 | % |  |  | (1.0 | %)
Vacant land, land development, and residential construction |  |  | 66,233,000 |  |  |  | 1.7 |  |  |  | 61,873,000 |  |  |  | 1.6 |  |  |  | 7.0 |
Real estate – owner occupied |  |  | 630,187,000 |  |  |  | 15.9 |  |  |  | 639,192,000 |  |  |  | 16.3 |  |  |  | (1.4 | )
Real estate – non-owner occupied |  |  | 1,051,221,000 |  |  |  | 26.5 |  |  |  | 1,033,734,000 |  |  |  | 26.4 |  |  |  | 1.7 |
Real estate – multi-family and residential rental |  |  | 219,339,000 |  |  |  | 5.5 |  |  |  | 211,948,000 |  |  |  | 5.4 |  |  |  | 3.5 |
Total commercial |  |  | 3,140,420,000 |  |  |  | 79.2 |  |  |  | 3,131,830,000 |  |  |  | 80.0 |  |  |  | 0.3 |
Retail: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1-4 family mortgages |  |  | 795,007,000 |  |  |  | 20.0 |  |  |  | 755,036,000 |  |  |  | 19.3 |  |  |  | 5.3 |
Other consumer loans |  |  | 30,101,000 |  |  |  | 0.8 |  |  |  | 29,753,000 |  |  |  | 0.7 |  |  |  | 1.2 |
Total retail |  |  | 825,108,000 |  |  |  | 20.8 |  |  |  | 784,789,000 |  |  |  | 20.0 |  |  |  | 5.1 |
Total loans |  | $ | 3,965,528,000 |  |  |  | 100.0 | % |  | $ | 3,916,619,000 |  |  |  | 100.0 | % |  |  | 1.2 | %
| (1) | For March 31, 2023, and December 31, 2022, includes $0.4 million and $0.9 million in loans originated under the Paycheck Protection Program, respectively.
Nonperforming loans as of March 31, 2023 and December 31, 2022 were as follows:
|  | March 31, |  |  | December 31, |
|  | 2023 |  |  | 2022 |
Loans past due 90 days or more still accruing interest |  | $ | 0 |  |  | $ | 0 |
Nonaccrual loans |  |  | 7,782,000 |  |  |  | 7,728,000 |
Total nonperforming loans |  | $ | 7,782,000 |  |  | $ | 7,728,000 |
The recorded principal balance of nonperforming loans was as follows:
|  | March 31, |  |  | December 31, |
|  | 2023 |  |  | 2022 |
Commercial: |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 5,654,000 |  |  | $ | 6,024,000 |
Vacant land, land development, and residential construction |  |  | 0 |  |  |  | 0 |
Real estate – owner occupied |  |  | 229,000 |  |  |  | 248,000 |
Real estate – non-owner occupied |  |  | 0 |  |  |  | 0 |
Real estate – multi-family and residential rental |  |  | 0 |  |  |  | 0 |
Total commercial |  |  | 5,883,000 |  |  |  | 6,272,000 |
Retail: |  |  |  |  |  |  |  |
1-4 family mortgages |  |  | 1,899,000 |  |  |  | 1,456,000 |
Other consumer loans |  |  | 0 |  |  |  | 0 |
Total retail |  |  | 1,899,000 |  |  |  | 1,456,000 |
Total nonperforming loans |  | $ | 7,782,000 |  |  | $ | 7,728,000 |
An age analysis of past due loans is as follows as of March 31, 2023:
|  | 30 – 59 Days Past Due |  |  | 60 – 89 Days Past Due |  |  | Greater Than 89 Days Past Due |  |  | Total Past Due |  |  | Current |  |  | Total Loans |  |  | Recorded Balance > 89 Days and Accruing |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 95,000 |  |  | $ | 0 |  |  | $ | 272,000 |  |  | $ | 367,000 |  |  | $ | 1,173,073,000 |  |  | $ | 1,173,440,000 |  |  | $ | 0 |
Vacant land, land development, and residential construction |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 66,233,000 |  |  |  | 66,233,000 |  |  |  | 0 |
Real estate – owner occupied |  |  | 206,000 |  |  |  | 44,000 |  |  |  | 229,000 |  |  |  | 479,000 |  |  |  | 629,708,000 |  |  |  | 630,187,000 |  |  |  | 0 |
Real estate – non-owner occupied |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 1,051,221,000 |  |  |  | 1,051,221,000 |  |  |  | 0 |
Real estate – multi-family and residential rental |  |  | 27,000 |  |  |  | 0 |  |  |  | 0 |  |  |  | 27,000 |  |  |  | 219,312,000 |  |  |  | 219,339,000 |  |  |  | 0 |
Total commercial |  |  | 328,000 |  |  |  | 44,000 |  |  |  | 501,000 |  |  |  | 873,000 |  |  |  | 3,139,547,000 |  |  |  | 3,140,420,000 |  |  |  | 0 |
Retail: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1-4 family mortgages |  |  | 733,000 |  |  |  | 235,000 |  |  |  | 277,000 |  |  |  | 1,245,000 |  |  |  | 793,762,000 |  |  |  | 795,007,000 |  |  |  | 0 |
Other consumer loans |  |  | 41,000 |  |  |  | 3,000 |  |  |  | 0 |  |  |  | 44,000 |  |  |  | 30,057,000 |  |  |  | 30,101,000 |  |  |  | 0 |
Total retail |  |  | 774,000 |  |  |  | 238,000 |  |  |  | 277,000 |  |  |  | 1,289,000 |  |  |  | 823,819,000 |  |  |  | 825,108,000 |  |  |  | 0 |
Total past due loans |  | $ | 1,102,000 |  |  | $ | 282,000 |  |  | $ | 778,000 |  |  | $ | 2,162,000 |  |  | $ | 3,963,366,000 |  |  | $ | 3,965,528,000 |  |  | $ | 0 |
An age analysis of past due loans is as follows as of December 31, 2022:
|  | 30 – 59 Days Past Due |  |  | 60 – 89 Days Past Due |  |  | Greater Than 89 Days Past Due |  |  | Total Past Due |  |  | Current |  |  | Total Loans |  |  | Recorded Balance > 89 Days and Accruing |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 0 |  |  | $ | 5,705,000 |  |  | $ | 249,000 |  |  | $ | 5,954,000 |  |  | $ | 1,179,129,000 |  |  | $ | 1,185,083,000 |  |  | $ | 0 |
Vacant land, land development, and residential construction |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 61,873,000 |  |  |  | 61,873,000 |  |  |  | 0 |
Real estate – owner occupied |  |  | 0 |  |  |  | 248,000 |  |  |  | 0 |  |  |  | 248,000 |  |  |  | 638,944,000 |  |  |  | 639,192,000 |  |  |  | 0 |
Real estate – non-owner occupied |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 1,033,734,000 |  |  |  | 1,033,734,000 |  |  |  | 0 |
Real estate – multi-family and residential rental |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 211,948,000 |  |  |  | 211,948,000 |  |  |  | 0 |
Total commercial |  |  | 0 |  |  |  | 5,953,000 |  |  |  | 249,000 |  |  |  | 6,202,000 |  |  |  | 3,125,628,000 |  |  |  | 3,131,830,000 |  |  |  | 0 |
Retail: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1-4 family mortgages |  |  | 1,334,000 |  |  |  | 88,000 |  |  |  | 116,000 |  |  |  | 1,538,000 |  |  |  | 753,498,000 |  |  |  | 755,036,000 |  |  |  | 0 |
Other consumer loans |  |  | 15,000 |  |  |  | 1,000 |  |  |  | 0 |  |  |  | 16,000 |  |  |  | 29,737,000 |  |  |  | 29,753,000 |  |  |  | 0 |
Total retail |  |  | 1,349,000 |  |  |  | 89,000 |  |  |  | 116,000 |  |  |  | 1,554,000 |  |  |  | 783,235,000 |  |  |  | 784,789,000 |  |  |  | 0 |
Total past due loans |  | $ | 1,349,000 |  |  | $ | 6,042,000 |  |  | $ | 365,000 |  |  | $ | 7,756,000 |  |  | $ | 3,908,863,000 |  |  | $ | 3,916,619,000 |  |  | $ | 0 |
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. Identified problem loans, which exhibit characteristics (financial or otherwise) that could cause the loans to become nonperforming or require restructuring in the future, are included on an internal watch list. Senior management and the Board of Directors review this list regularly. Fair value estimates of collateral on distressed lending relationships, as well as on foreclosed and repossessed assets, are reviewed periodically. We also have a process in place to monitor whether value estimates at each quarter-end are reflective of current market conditions. Our credit policies establish criteria for obtaining appraisals and determining internal value estimates. We may also adjust outside and internal valuations based on identifiable trends within our markets, such as recent sales of similar properties or assets, listing prices and offers received. In addition, we may discount certain appraised and internal value estimates to address distressed market conditions. Under CECL for collateral dependent loans in instances where the borrower is experiencing financial difficulties, we adopted the practical expedient to measure the allowance based on the fair value of collateral. The allowance is calculated on an individual loan basis based on the shortfall between the fair value of the loan’s collateral and the recorded principal balance. If the fair value of the collateral exceeds the recorded principal balance, no allowance is required. Collateral dependent loans, representing the entire amount of loans on nonaccrual, totaled $7.8 million and $7.7 million as of March 31, 2023 and December 31, 2022, respectively.
Nonaccrual loans as of March 31, 2023 were as follows:
|  | Amortized |  |  | Related |
|  | Cost |  |  | Allowance |
With no allowance recorded: |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 1,986,000 |  |  | $ | 0 |
Vacant land, land development and residential construction |  |  | 0 |  |  |  | 0 |
Real estate – owner occupied |  |  | 229,000 |  |  |  | 0 |
Real estate – non-owner occupied |  |  | 0 |  |  |  | 0 |
Real estate – multi-family and residential rental |  |  | 0 |  |  |  | 0 |
Total commercial |  |  | 2,215,000 |  |  |  | 0 |
Retail: |  |  |  |  |  |  |  |
1-4 family mortgages |  |  | 1,096,000 |  |  |  | 0 |
Other consumer loans |  |  | 0 |  |  |  | 0 |
Total retail |  |  | 1,096,000 |  |  |  | 0 |
Total with no allowance recorded |  | $ | 3,311,000 |  |  | $ | 0 |
With an allowance recorded: |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 3,668,000 |  |  | $ | 2,060,000 |
Vacant land, land development and residential construction |  |  | 0 |  |  |  | 0 |
Real estate – owner occupied |  |  | 0 |  |  |  | 0 |
Real estate – non-owner occupied |  |  | 0 |  |  |  | 0 |
Real estate – multi-family and residential rental |  |  | 0 |  |  |  | 0 |
Total commercial |  |  | 3,668,000 |  |  |  | 2,060,000 |
Retail: |  |  |  |  |  |  |  |
1-4 family mortgages |  |  | 803,000 |  |  |  | 378,000 |
Other consumer loans |  |  | 0 |  |  |  | 0 |
Total retail |  |  | 803,000 |  |  |  | 378,000 |
Total with an allowance recorded |  | $ | 4,471,000 |  |  | $ | 2,438,000 |
Total nonaccrual loans: |  |  |  |  |  |  |  |
Commercial |  | $ | 5,883,000 |  |  | $ | 2,060,000 |
Retail |  |  | 1,899,000 |  |  |  | 378,000 |
Total nonaccrual loans |  | $ | 7,782,000 |  |  | $ | 2,438,000 |
No interest income was recognized on nonaccrual loans during the first quarter of 2023.
Nonaccrual loans as of December 31, 2022 were as follows:
|  | Amortized |  |  | Related |
|  | Cost |  |  | Allowance |
With no allowance recorded: |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 249,000 |  |  | $ | 0 |
Vacant land, land development and residential construction |  |  | 0 |  |  |  | 0 |
Real estate – owner occupied |  |  | 0 |  |  |  | 0 |
Real estate – non-owner occupied |  |  | 0 |  |  |  | 0 |
Real estate – multi-family and residential rental |  |  | 0 |  |  |  | 0 |
Total commercial |  |  | 249,000 |  |  |  | 0 |
Retail: |  |  |  |  |  |  |  |
1-4 family mortgages |  |  | 1,064,000 |  |  |  | 0 |
Other consumer loans |  |  | 0 |  |  |  | 0 |
Total retail |  |  | 1,064,000 |  |  |  | 0 |
Total with no allowance recorded |  | $ | 1,313,000 |  |  | $ | 0 |
With an allowance recorded: |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 5,775,000 |  |  | $ | 2,051,000 |
Vacant land, land development and residential construction |  |  | 0 |  |  |  | 0 |
Real estate – owner occupied |  |  | 248,000 |  |  |  | 32,000 |
Real estate – non-owner occupied |  |  | 0 |  |  |  | 0 |
Real estate – multi-family and residential rental |  |  | 0 |  |  |  | 0 |
Total commercial |  |  | 6,023,000 |  |  |  | 2,083,000 |
Retail: |  |  |  |  |  |  |  |
1-4 family mortgages |  |  | 392,000 |  |  |  | 200,000 |
Other consumer loans |  |  | 0 |  |  |  | 0 |
Total retail |  |  | 392,000 |  |  |  | 200,000 |
Total with an allowance recorded |  | $ | 6,415,000 |  |  | $ | 2,283,000 |
Total nonaccrual loans: |  |  |  |  |  |  |  |
Commercial |  | $ | 6,272,000 |  |  | $ | 2,083,000 |
Retail |  |  | 1,456,000 |  |  |  | 200,000 |
Total nonaccrual loans |  | $ | 7,728,000 |  |  | $ | 2,283,000 |
No interest income was recognized on nonaccrual loans during 2022.
Credit Quality Indicators. We utilize a comprehensive grading system for our commercial loans. All commercial loans are graded on a ten grade rating system. The rating system utilizes standardized grade paradigms that analyze several critical factors such as cash flow, operating performance, financial condition, collateral, industry condition and management. All commercial loans are graded at inception and reviewed and, if appropriate, re-graded at various intervals thereafter. The primary risk elements with respect to commercial loans are the financial condition of the borrower, the sufficiency of collateral, and timeliness of scheduled payments. We have a policy of requesting and reviewing periodic financial statements from commercial loan customers and employ a disciplined and formalized review of the existence of collateral and its value. All commercial loans are graded using the following criteria:
| Grade 1. | “Exceptional” Loans with this rating contain very little, if any, risk.
| Grade 2. | “Outstanding” Loans with this rating have excellent and stable sources of repayment and conform to bank policy and regulatory requirements.
| Grade 3. | “Very Good” Loans with this rating have strong sources of repayment and conform to bank policy and regulatory requirements. These are loans for which repayment risks are acceptable.
| Grade 4. | “Good” Loans with this rating have solid sources of repayment and conform to bank policy and regulatory requirements. These are loans for which repayment risks are modest.
| Grade 5. | “Acceptable” Loans with this rating exhibit acceptable sources of repayment and conform with most bank policies and all regulatory requirements. These are for loans for which repayment risks are satisfactory.
| Grade 6. | “Monitor” Loans with this rating are considered to have emerging weaknesses which may include negative current cash flow, high leverage, or operating losses. Generally, if further deterioration is observed, these credits will be downgraded to the criticized asset report.
| Grade 7. | “Special Mention” Loans with this rating have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan at some future date.
| Grade 8. | “Substandard” Loans with this rate are inadequately protected by current sound net worth, paying capacity of the obligor, or of the pledged collateral, if any. A Substandard loan normally has one or more well-defined weaknesses that jeopardize the repayment of the debt. They are characterized by the distinct possibility of loss if the deficiencies are not corrected.
| Grade 9. | “Doubtful” Loans with this rating exhibit all the weaknesses inherent in the Substandard classification and where collection or liquidation in full is highly questionable and improbable.
| Grade 10. | “Loss” Loans with this rating are considered uncollectible, and of such little value that continuance as an active asset is not warranted.
| The primary risk element with respect to each residential real estate loan and consumer loan is the timeliness of scheduled payments. We have a reporting system that monitors past due loans and have adopted policies to pursue creditors’ rights in order to preserve our collateral position. Retail loans that reach 90 days or more past due are generally placed into nonaccrual status and are categorized as nonperforming.
The following table reflects amortized cost basis of loans and year-to-date loan charge-offs as of March 31, 2023 based on year of origination (dollars in thousands):
|  | 2023 |  |  | 2022 |  |  | 2021 |  |  | 2020 |  |  | 2019 |  |  | Prior |  |  | Term Total |  |  | Revolving Loans |  |  | Grand Total |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and Industrial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Grades 1 – 4 |  | $ | 38,167 |  |  | $ | 101,497 |  |  | $ | 129,476 |  |  | $ | 38,182 |  |  | $ | 8,393 |  |  | $ | 11,100 |  |  | $ | 326,815 |  |  | $ | 396,886 |  |  | $ | 723,701 |
Grades 5 – 7 |  |  | 25,597 |  |  |  | 128,333 |  |  |  | 42,304 |  |  |  | 26,770 |  |  |  | 8,472 |  |  |  | 512 |  |  |  | 231,988 |  |  |  | 194,070 |  |  |  | 426,058 |
Grades 8 – 9 |  |  | 9,947 |  |  |  | 24 |  |  |  | 249 |  |  |  | 0 |  |  |  | 0 |  |  |  | 43 |  |  |  | 10,263 |  |  |  | 13,418 |  |  |  | 23,681 |
Total |  | $ | 73,711 |  |  | $ | 229,854 |  |  | $ | 172,029 |  |  | $ | 64,952 |  |  | $ | 16,865 |  |  | $ | 11,655 |  |  | $ | 569,066 |  |  | $ | 604,374 |  |  | $ | 1,173,440 |
Current year-to-date gross write offs |  | $ | 0 |  |  | $ | 36 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 36 |  |  | $ | 0 |  |  | $ | 36 |
Vacant Land, Land Development and Residential Construction: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Grades 1 – 4 |  | $ | 2,916 |  |  | $ | 28,645 |  |  | $ | 5,225 |  |  | $ | 3,121 |  |  | $ | 0 |  |  | $ | 321 |  |  | $ | 40,228 |  |  | $ | 0 |  |  | $ | 40,228 |
Grades 5 – 7 |  |  | 5,310 |  |  |  | 11,643 |  |  |  | 7,602 |  |  |  | 341 |  |  |  | 48 |  |  |  | 586 |  |  |  | 25,530 |  |  |  | 374 |  |  |  | 25,904 |
Grades 8 – 9 |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 101 |  |  |  | 101 |  |  |  | 0 |  |  |  | 101 |
Total |  | $ | 8,226 |  |  | $ | 40,288 |  |  | $ | 12,827 |  |  | $ | 3,462 |  |  | $ | 48 |  |  | $ | 1,008 |  |  | $ | 65,859 |  |  | $ | 374 |  |  | $ | 66,233 |
Current year-to-date gross write offs |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |
Real Estate – Owner Occupied: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Grades 1 – 4 |  | $ | 39,686 |  |  | $ | 167,851 |  |  | $ | 110,400 |  |  | $ | 51,319 |  |  | $ | 18,545 |  |  | $ | 22,312 |  |  | $ | 410,113 |  |  | $ | 0 |  |  | $ | 410,113 |
Grades 5 – 7 |  |  | 15,364 |  |  |  | 97,215 |  |  |  | 42,009 |  |  |  | 32,707 |  |  |  | 9,976 |  |  |  | 12,171 |  |  |  | 209,442 |  |  |  | 0 |  |  |  | 209,442 |
Grades 8 – 9 |  |  | 7,500 |  |  |  | 2,966 |  |  |  | 0 |  |  |  | 44 |  |  |  | 0 |  |  |  | 122 |  |  |  | 10,632 |  |  |  | 0 |  |  |  | 10,632 |
Total |  | $ | 62,550 |  |  | $ | 268,032 |  |  | $ | 152,409 |  |  | $ | 84,070 |  |  | $ | 28,521 |  |  | $ | 34,605 |  |  | $ | 630,187 |  |  | $ | 0 |  |  | $ | 630,187 |
Current year-to-date gross write offs |  | $ | 0 |  |  | $ | 14 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 14 |  |  | $ | 0 |  |  | $ | 14 |
Real Estate – Non-Owner Occupied: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Grades 1 – 4 |  | $ | 11,142 |  |  | $ | 114,392 |  |  | $ | 162,687 |  |  | $ | 92,232 |  |  | $ | 47,592 |  |  | $ | 21,345 |  |  | $ | 449,390 |  |  | $ | 0 |  |  | $ | 449,390 |
Grades 5 – 7 |  |  | 65,990 |  |  |  | 174,725 |  |  |  | 156,779 |  |  |  | 112,205 |  |  |  | 31,078 |  |  |  | 48,780 |  |  |  | 589,557 |  |  |  | 0 |  |  |  | 589,557 |
Grades 8 – 9 |  |  | 0 |  |  |  | 6,644 |  |  |  | 5,630 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 12,274 |  |  |  | 0 |  |  |  | 12,274 |
Total |  | $ | 77,132 |  |  | $ | 295,761 |  |  | $ | 325,096 |  |  | $ | 204,437 |  |  | $ | 78,670 |  |  | $ | 70,125 |  |  | $ | 1,051,221 |  |  | $ | 0 |  |  | $ | 1,051,221 |
Current year-to-date gross write offs |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |
Real Estate – Multi-Family and Residential Rental: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Grades 1 – 4 |  | $ | 9,717 |  |  | $ | 31,937 |  |  | $ | 39,603 |  |  | $ | 35,737 |  |  | $ | 5,213 |  |  | $ | 6,386 |  |  | $ | 128,593 |  |  | $ | 0 |  |  | $ | 128,593 |
Grades 5 – 7 |  |  | 5,470 |  |  |  | 32,355 |  |  |  | 23,634 |  |  |  | 12,323 |  |  |  | 3,041 |  |  |  | 2,602 |  |  |  | 79,425 |  |  |  | 0 |  |  |  | 79,425 |
Grades 8 – 9 |  |  | 0 |  |  |  | 11,250 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 71 |  |  |  | 11,321 |  |  |  | 0 |  |  |  | 11,321 |
Total |  | $ | 15,187 |  |  | $ | 75,542 |  |  | $ | 63,237 |  |  | $ | 48,060 |  |  | $ | 8,254 |  |  | $ | 9,059 |  |  | $ | 219,339 |  |  | $ | 0 |  |  | $ | 219,339 |
Current year-to-date gross write offs |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |
Total Commercial |  | $ | 236,806 |  |  | $ | 909,477 |  |  | $ | 725,598 |  |  | $ | 404,981 |  |  | $ | 132,358 |  |  | $ | 126,452 |  |  | $ | 2,535,672 |  |  | $ | 604,748 |  |  | $ | 3,140,420 |
Total Comm current YTD gross write offs |  | $ | 0 |  |  | $ | 50 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 50 |  |  | $ | 0 |  |  | $ | 50 |
|  | 2023 |  |  | 2022 |  |  | 2021 |  |  | 2020 |  |  | 2019 |  |  | Prior |  |  | Term Total |  |  | Revolving Loans |  |  | Grand Total |
Retail: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1-4 Family Mortgages: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 35,010 |  |  | $ | 325,078 |  |  | $ | 240,820 |  |  | $ | 90,565 |  |  | $ | 11,799 |  |  | $ | 52,831 |  |  | $ | 756,103 |  |  | $ | 37,005 |  |  | $ | 793,108 |
Nonperforming |  |  | 0 |  |  |  | 138 |  |  |  | 385 |  |  |  | 0 |  |  |  | 13 |  |  |  | 1,363 |  |  |  | 1,899 |  |  |  | 0 |  |  |  | 1,899 |
Total |  | $ | 35,010 |  |  | $ | 325,216 |  |  | $ | 241,205 |  |  | $ | 90,565 |  |  | $ | 11,812 |  |  | $ | 54,194 |  |  | $ | 758,002 |  |  | $ | 37,005 |  |  | $ | 795,007 |
Current year-to-date gross write offs |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 42 |  |  | $ | 42 |  |  | $ | 0 |  |  | $ | 42 |
Other Consumer Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 1,808 |  |  | $ | 3,771 |  |  | $ | 2,409 |  |  | $ | 844 |  |  | $ | 940 |  |  | $ | 605 |  |  | $ | 10,377 |  |  | $ | 19,724 |  |  | $ | 30,101 |
Nonperforming |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Total |  | $ | 1,808 |  |  | $ | 3,771 |  |  | $ | 2,409 |  |  | $ | 844 |  |  | $ | 940 |  |  | $ | 605 |  |  | $ | 10,377 |  |  | $ | 19,724 |  |  | $ | 30,101 |
Current year-to-date gross write offs |  | $ | 0 |  |  | $ | 3 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 1 |  |  | $ | 4 |  |  | $ | 10 |  |  | $ | 14 |
Total Retail |  | $ | 36,818 |  |  | $ | 328,987 |  |  | $ | 243,614 |  |  | $ | 91,409 |  |  | $ | 12,752 |  |  | $ | 54,799 |  |  | $ | 768,379 |  |  | $ | 56,729 |  |  | $ | 825,108 |
Total Retail Current YTD gross write offs |  | $ | 0 |  |  | $ | 3 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 43 |  |  | $ | 46 |  |  | $ | 10 |  |  | $ | 56 |
Grand Total |  | $ | 273,624 |  |  | $ | 1,238,464 |  |  | $ | 969,212 |  |  | $ | 496,390 |  |  | $ | 145,110 |  |  | $ | 181,251 |  |  | $ | 3,304,051 |  |  | $ | 661,477 |  |  | $ | 3,965,528 |
Grand Total Current YTD gross write offs |  | $ | 0 |  |  | $ | 53 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 43 |  |  | $ | 96 |  |  | $ | 10 |  |  | $ | 106 |
There were no revolving loans converted to term loans during the first three months of 2023.
The following table reflects amortized cost of basis of loans as of December 31, 2022 based on year of origination (dollars in thousands):
|  | 2022 |  |  | 2021 |  |  | 2020 |  |  | 2019 |  |  | 2018 |  |  | Prior |  |  | Term Total |  |  | Revolving Loans |  |  | Grand Total |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and Industrial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Grades 1 – 4 |  | $ | 115,494 |  |  | $ | 141,481 |  |  | $ | 43,961 |  |  | $ | 9,194 |  |  | $ | 3,230 |  |  | $ | 9,851 |  |  | $ | 323,211 |  |  | $ | 396,372 |  |  | $ | 719,583 |
Grades 5 – 7 |  |  | 151,783 |  |  |  | 47,030 |  |  |  | 31,697 |  |  |  | 8,870 |  |  |  | 569 |  |  |  | 93 |  |  |  | 240,042 |  |  |  | 210,363 |  |  |  | 450,405 |
Grades 8 – 9 |  |  | 3,784 |  |  |  | 249 |  |  |  | 0 |  |  |  | 0 |  |  |  | 48 |  |  |  | 29 |  |  |  | 4,110 |  |  |  | 10,985 |  |  |  | 15,095 |
Total |  | $ | 271,061 |  |  | $ | 188,760 |  |  | $ | 75,658 |  |  | $ | 18,064 |  |  | $ | 3,847 |  |  | $ | 9,973 |  |  | $ | 567,363 |  |  | $ | 617,720 |  |  | $ | 1,185,083 |
Vacant Land, Land Development and Residential Construction: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Grades 1 – 4 |  | $ | 31,756 |  |  | $ | 6,196 |  |  | $ | 3,428 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 331 |  |  | $ | 41,711 |  |  | $ | 0 |  |  | $ | 41,711 |
Grades 5 – 7 |  |  | 10,270 |  |  |  | 8,760 |  |  |  | 351 |  |  |  | 50 |  |  |  | 0 |  |  |  | 626 |  |  |  | 20,057 |  |  |  | 0 |  |  |  | 20,057 |
Grades 8 – 9 |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 14 |  |  |  | 91 |  |  |  | 105 |  |  |  | 0 |  |  |  | 105 |
Total |  | $ | 42,026 |  |  | $ | 14,956 |  |  | $ | 3,779 |  |  | $ | 50 |  |  | $ | 14 |  |  | $ | 1,048 |  |  | $ | 61,873 |  |  | $ | 0 |  |  | $ | 61,873 |
Real Estate – Owner Occupied: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Grades 1 – 4 |  | $ | 194,072 |  |  | $ | 113,528 |  |  | $ | 53,630 |  |  | $ | 19,670 |  |  | $ | 19,279 |  |  | $ | 6,162 |  |  | $ | 406,341 |  |  | $ | 0 |  |  | $ | 406,341 |
Grades 5 – 7 |  |  | 115,720 |  |  |  | 56,173 |  |  |  | 33,913 |  |  |  | 10,245 |  |  |  | 12,550 |  |  |  | 1,165 |  |  |  | 229,766 |  |  |  | 0 |  |  |  | 229,766 |
Grades 8 – 9 |  |  | 2,919 |  |  |  | 0 |  |  |  | 44 |  |  |  | 0 |  |  |  | 122 |  |  |  | 0 |  |  |  | 3,085 |  |  |  | 0 |  |  |  | 3,085 |
Total |  | $ | 312,711 |  |  | $ | 169,701 |  |  | $ | 87,587 |  |  | $ | 29,915 |  |  | $ | 31,951 |  |  | $ | 7,327 |  |  | $ | 639,192 |  |  | $ | 0 |  |  | $ | 639,192 |
Real Estate – Non-Owner Occupied: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Grades 1 – 4 |  | $ | 129,153 |  |  | $ | 163,035 |  |  | $ | 89,125 |  |  | $ | 44,196 |  |  | $ | 10,079 |  |  | $ | 12,018 |  |  | $ | 447,606 |  |  | $ | 0 |  |  | $ | 447,606 |
Grades 5 – 7 |  |  | 183,388 |  |  |  | 164,334 |  |  |  | 139,951 |  |  |  | 35,200 |  |  |  | 13,456 |  |  |  | 37,399 |  |  |  | 573,728 |  |  |  | 0 |  |  |  | 573,728 |
Grades 8 – 9 |  |  | 6,712 |  |  |  | 5,688 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 12,400 |  |  |  | 0 |  |  |  | 12,400 |
Total |  | $ | 319,253 |  |  | $ | 333,057 |  |  | $ | 229,076 |  |  | $ | 79,396 |  |  | $ | 23,535 |  |  | $ | 49,417 |  |  | $ | 1,033,734 |  |  | $ | 0 |  |  | $ | 1,033,734 |
Real Estate – Multi-Family and Residential Rental: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Grades 1 – 4 |  | $ | 31,470 |  |  | $ | 38,176 |  |  | $ | 36,348 |  |  | $ | 5,306 |  |  | $ | 3,082 |  |  | $ | 4,003 |  |  | $ | 118,385 |  |  | $ | 0 |  |  | $ | 118,385 |
Grades 5 – 7 |  |  | 48,847 |  |  |  | 25,786 |  |  |  | 12,879 |  |  |  | 3,162 |  |  |  | 2,557 |  |  |  | 283 |  |  |  | 93,514 |  |  |  | 0 |  |  |  | 93,514 |
Grades 8 – 9 |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 49 |  |  |  | 49 |  |  |  | 0 |  |  |  | 49 |
Total |  | $ | 80,317 |  |  | $ | 63,962 |  |  | $ | 49,227 |  |  | $ | 8,468 |  |  | $ | 5,639 |  |  | $ | 4,335 |  |  | $ | 211,948 |  |  | $ | 0 |  |  | $ | 211,948 |
Total Commercial |  | $ | 1,025,368 |  |  | $ | 770,436 |  |  | $ | 445,327 |  |  | $ | 135,893 |  |  | $ | 64,986 |  |  | $ | 72,100 |  |  | $ | 2,514,110 |  |  | $ | 617,720 |  |  | $ | 3,131,830 |
|  | 2022 |  |  | 2021 |  |  | 2020 |  |  | 2019 |  |  | 2018 |  |  | Prior |  |  | Term Total |  |  | Revolving Loans |  |  | Grand Total |
Retail: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1-4 Family Mortgages: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 313,611 |  |  | $ | 242,950 |  |  | $ | 91,936 |  |  | $ | 12,094 |  |  | $ | 14,297 |  |  | $ | 41,622 |  |  | $ | 716,510 |  |  | $ | 37,070 |  |  | $ | 753,580 |
Nonperforming |  |  | 142 |  |  |  | 82 |  |  |  | 0 |  |  |  | 0 |  |  |  | 203 |  |  |  | 1,029 |  |  |  | 1,456 |  |  |  | 0 |  |  |  | 1,456 |
Total |  | $ | 313,753 |  |  | $ | 243,032 |  |  | $ | 91,936 |  |  | $ | 12,094 |  |  | $ | 14,500 |  |  | $ | 42,651 |  |  | $ | 717,966 |  |  | $ | 37,070 |  |  | $ | 755,036 |
Other Consumer Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 4,349 |  |  | $ | 2,870 |  |  | $ | 1,040 |  |  | $ | 1,074 |  |  | $ | 395 |  |  | $ | 430 |  |  | $ | 10,158 |  |  | $ | 19,595 |  |  | $ | 29,753 |
Nonperforming |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Total |  | $ | 4,349 |  |  | $ | 2,870 |  |  | $ | 1,040 |  |  | $ | 1,074 |  |  | $ | 395 |  |  | $ | 430 |  |  | $ | 10,158 |  |  | $ | 19,595 |  |  | $ | 29,753 |
Total Retail |  | $ | 318,102 |  |  | $ | 245,902 |  |  | $ | 92,976 |  |  | $ | 13,168 |  |  | $ | 14,895 |  |  | $ | 43,081 |  |  | $ | 728,124 |  |  | $ | 56,665 |  |  | $ | 784,789 |
Grand Total |  | $ | 1,343,470 |  |  | $ | 1,016,338 |  |  | $ | 538,303 |  |  | $ | 149,061 |  |  | $ | 79,881 |  |  | $ | 115,181 |  |  | $ | 3,242,234 |  |  | $ | 674,385 |  |  | $ | 3,916,619 |
There were no revolving loans converted to term loans during 2022. Activity in the allowance for credit losses during the three months ended March 31, 2023 is as follows (dollars in thousands):
|  | Commercial and industrial |  |  | Commercial vacant land, land development and residential construction |  |  | Commercial real estate – owner occupied |  |  | Commercial real estate – non-owner occupied |  |  | Commercial real estate – multi-family and residential rental |  |  | 1-4 family mortgages |  |  | Other consumer loans |  |  | Unallocated |  |  | Total |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 10,203 |  |  | $ | 490 |  |  | $ | 5,914 |  |  | $ | 10,164 |  |  | $ | 1,269 |  |  | $ | 14,027 |  |  | $ | 160 |  |  | $ | 19 |  |  | $ | 42,246 |
Provision for credit losses |  |  | (7 | ) |  |  | 19 |  |  |  | (237 | ) |  |  | 131 |  |  |  | 24 |  |  |  | 618 |  |  |  | (5 | ) |  |  | 57 |  |  |  | 600 |
Charge-offs |  |  | (36 | ) |  |  | 0 |  |  |  | (14 | ) |  |  | 0 |  |  |  | 0 |  |  |  | (42 | ) |  |  | (14 | ) |  |  | 0 |  |  |  | (106 | )
Recoveries |  |  | 21 |  |  |  | 1 |  |  |  | 48 |  |  |  | 0 |  |  |  | 7 |  |  |  | 45 |  |  |  | 15 |  |  |  | 0 |  |  |  | 137 |
Ending balance |  | $ | 10,181 |  |  | $ | 510 |  |  | $ | 5,711 |  |  | $ | 10,295 |  |  | $ | 1,300 |  |  | $ | 14,648 |  |  | $ | 156 |  |  | $ | 76 |  |  | $ | 42,877 |
Activity in the allowance for credit losses during the three months ended March 31, 2022 is as follows (dollars in thousands):
|  | Commercial and industrial |  |  | Commercial vacant land, land development and residential construction |  |  | Commercial real estate – owner occupied |  |  | Commercial real estate – non-owner occupied |  |  | Commercial real estate – multi-family and residential rental |  |  | 1-4 family mortgages |  |  | Other consumer loans |  |  | Unallocated |  |  | Total |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 10,782 |  |  | $ | 420 |  |  | $ | 6,045 |  |  | $ | 13,301 |  |  | $ | 1,695 |  |  | $ | 2,449 |  |  | $ | 626 |  |  | $ | 45 |  |  | $ | 35,363 |
Adoption of ASU 2016-13 |  |  | (1,571 | ) |  |  | (43 | ) |  |  | (560 | ) |  |  | (2,534 | ) |  |  | (621 | ) |  |  | 5,395 |  |  |  | (411 | ) |  |  | (55 | ) |  |  | (400 | )
Provision for credit losses |  |  | (742 | ) |  |  | 106 |  |  |  | 286 |  |  |  | (445 | ) |  |  | 194 |  |  |  | 593 |  |  |  | (33 | ) |  |  | 141 |  |  |  | 100 |
Charge-offs |  |  | (170 | ) |  |  | (29 | ) |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | (2 | ) |  |  | (4 | ) |  |  | 0 |  |  |  | (205 | )
Recoveries |  |  | 114 |  |  |  | 1 |  |  |  | 32 |  |  |  | 0 |  |  |  | 8 |  |  |  | 127 |  |  |  | 13 |  |  |  | 0 |  |  |  | 295 |
Ending balance |  | $ | 8,413 |  |  | $ | 455 |  |  | $ | 5,803 |  |  | $ | 10,322 |  |  | $ | 1,276 |  |  | $ | 8,562 |  |  | $ | 191 |  |  | $ | 131 |  |  | $ | 35,153 |
There were no loans modified to borrowers experiencing financial difficulty during the first three months of 2023. Loans modified as troubled debt restructurings during the three months ended March 31, 2022 were as follows:
|  |  |  |  |  | Pre- |  |  | Post- |
|  |  |  |  |  | Modification |  |  | Modification |
|  |  |  |  |  | Recorded |  |  | Recorded |
|  | Number of |  |  | Principal |  |  | Principal |
|  | Contracts |  |  | Balance |  |  | Balance |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  | 0 |  |  | $ | 0 |  |  | $ | 0 |
Vacant land, land development and residential construction |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Real estate – owner occupied |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Real estate – non-owner occupied |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Real estate – multi-family and residential rental |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Total commercial |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Retail: |  |  |  |  |  |  |  |  |  |  |  |
1-4 family mortgages |  |  | 2 |  |  |  | 128,000 |  |  |  | 128,000 |
Other consumer loans |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Total retail |  |  | 2 |  |  |  | 128,000 |  |  |  | 128,000 |
Total loans |  |  | 2 |  |  | $ | 128,000 |  |  | $ | 128,000 |
The following loans, modified as troubled debt restructurings within the previous twelve months, became over 30 days past due within the three months ended March 31, 2022 (amounts as of period end):
|  |  |  |  |  | Recorded |
|  | Number of |  |  | Principal |
|  | Contracts |  |  | Balance |
Commercial: |  |  |  |  |  |  |  |
Commercial and industrial |  |  | 0 |  |  | $ | 0 |
Vacant land, land development and residential construction |  |  | 0 |  |  |  | 0 |
Real estate – owner occupied |  |  | 0 |  |  |  | 0 |
Real estate – non-owner occupied |  |  | 0 |  |  |  | 0 |
Real estate – multi-family and residential rental |  |  | 0 |  |  |  | 0 |
Total commercial |  |  | 0 |  |  |  | 0 |
Retail: |  |  |  |  |  |  |  |
1-4 family mortgages |  |  | 0 |  |  |  | 0 |
Other consumer loans |  |  | 0 |  |  |  | 0 |
Total retail |  |  | 0 |  |  |  | 0 |
Total loans |  |  | 0 |  |  | $ | 0 |
Activity for loans categorized as troubled debt restructurings during the three months ended March 31, 2022 is as follows:
|  | Commercial and Industrial |  |  | Commercial Vacant Land, Land Development, and Residential Construction |  |  | Commercial Real Estate - Owner Occupied |  |  | Commercial Real Estate - Non-Owner Occupied |  |  | Commercial Real Estate - Multi-Family and Residential Rental |
Commercial Loan Portfolio: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning Balance |  | $ | 4,973,000 |  |  | $ | 0 |  |  | $ | 10,435,000 |  |  | $ | 146,000 |  |  | $ | 91,000 |
Charge-Offs |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Payments |  |  | (212,000 | ) |  |  | 0 |  |  |  | (9,677,000 | ) |  |  | (3,000 | ) |  |  | (1,000 | )
Transfers to ORE |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Net Additions/Deletions |  |  | (1,932,000 | ) |  |  | 0 |  |  |  | (669,000 | ) |  |  | 0 |  |  |  | 0 |
Ending Balance |  | $ | 2,829,000 |  |  | $ | 0 |  |  | $ | 89,000 |  |  | $ | 143,000 |  |  | $ | 90,000 |
|  | Retail |  |  | Retail |
|  | 1-4 Family |  |  | Other Consumer |
|  | Mortgages |  |  | Loans |
Retail Loan Portfolio: |  |  |  |  |  |  |  |
Beginning Balance |  | $ | 627,000 |  |  | $ | 1,202,000 |
Charge-Offs |  |  | 0 |  |  |  | 0 |
Payments |  |  | (78,000 | ) |  |  | (2,000 | )
Transfers to ORE |  |  | 0 |  |  |  | 0 |
Net Additions/Deletions (1) |  |  | 1,797,000 |  |  |  | (1,187,000 | )
Ending Balance |  | $ | 2,346,000 |  |  | $ | 13,000 |
| (1) | Includes $1.2 million in the transfer of home equity lines of credit from other consumer loans to 1-4 family mortgages in association with the adoption of the CECL methodology effective January 1, 2022.

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- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//310-10/tableOfContent + Details
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