XML 24 R14.htm IDEA: XBRL DOCUMENT v3.25.3
Loans and Allowance for Credit Losses on Loans
 9 Months Ended
Sep. 30, 2025
Receivables [Abstract]  
Loans and Allowance for Credit Losses on Loans Loans and Allowance for Credit Losses on Loans
Loans consist of the following at the dates indicated(1):
September 30, 2025December 31, 2024
Commercial real estate
Construction and land development$268,953 $274,356 
Commercial real estate – owner occupied540,807 545,490 
Commercial real estate – non-owner occupied861,244 866,094 
Multifamily115,403 120,425 
Total commercial real estate1,786,407 1,806,365 
Commercial
Commercial and industrial399,155 316,159 
Equipment finance340,322 406,400 
Municipal leases164,967 165,984 
Total commercial904,444 888,543 
Residential real estate
Construction and land development51,110 53,683 
One-to-four family636,857 630,391 
HELOCs216,122 195,288 
Total residential real estate904,089 879,362 
Consumer48,679 74,029 
Total loans, net of deferred loan fees and costs3,643,619 3,648,299 
Allowance for credit losses - loans(43,086)(45,285)
Loans, net$3,600,533 $3,603,014 
(1)    At September 30, 2025 and December 31, 2024 accrued interest receivable of $16,284 and $17,569, respectively, was accounted for separately from the amortized cost basis.
All qualifying one-to-four family loans, HELOCs, multifamily, commercial real estate loans and FHLB of Atlanta stock are pledged as collateral by a blanket pledge to secure outstanding FHLB advances.
Loans are made to the Company's executive officers, directors and their associates during the ordinary course of business. No balance was outstanding on loans to these related parties as of either September 30, 2025 or December 31, 2024. In relation to these loans, unfunded commitments totaled approximately $3 at both September 30, 2025 and December 31, 2024, respectively.
Loans are monitored for credit quality on a recurring basis and the composition of the loans outstanding by credit quality indicator is provided below. Loan credit quality indicators are developed through review of individual borrowers on an ongoing basis. Generally, loans are monitored for performance on a quarterly basis with the credit quality indicators adjusted as needed. The indicators represent the rating for loans as of the date presented based on the most recent assessment performed. These credit quality indicators are defined as follows:
Pass – A pass rated loan is not adversely classified because it does not display any of the characteristics for adverse classification.
Special Mention – A special mention loan has potential weaknesses that deserve management’s close attention. If left uncorrected, such potential weaknesses may result in deterioration of the repayment prospects or collateral position at some future date. Special mention loans are not adversely classified and do not warrant adverse classification.
Substandard – A substandard loan is inadequately protected by the current net worth and paying capacity of the obligor, or of the collateral pledged, if any. Loans classified as substandard generally have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. These loans are characterized by the distinct possibility of loss if the deficiencies are not corrected.
Doubtful – A loan classified as doubtful has all the weaknesses inherent in a loan classified substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable, on the basis of currently existing facts, conditions and values.
Loss – Loans classified as loss are considered uncollectible and of such little value that their continuing to be carried as a loan is not warranted. This classification is not necessarily equivalent to no potential for recovery or salvage value, but rather that it is not appropriate to defer a full write-off even though partial recovery may be effected in the future.
The following table presents the credit risk profile by risk grade for commercial real estate, commercial, residential real estate and consumer loans by origination year as of September 30, 2025. Also included in the table detailing loan balances are gross charge-offs for the nine months ended September 30, 2025.
Term Loans By Origination Fiscal Year
September 30, 202520252024
2023-S(1)
20232022PriorRevolvingTotal
Construction and land development
Risk rating
Pass$99,494 $94,481 $30,833 $9,994 $18,158 $11,806 $4,187 $268,953 
Special mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful
— — — — — — — — 
Loss— — — — — — — — 
Total construction and land development$99,494 $94,481 $30,833 $9,994 $18,158 $11,806 $4,187 $268,953 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Commercial real estate – owner occupied
Risk rating
Pass$48,609 $52,402 $37,856 $62,017 $89,362 $231,555 $4,208 $526,009 
Special mention— — — 170 378 2,459 — 3,007 
Substandard— 264 423 162 4,952 5,325 — 11,126 
Doubtful— — — 410 243 12 — 665 
Loss— — — — — — — — 
Total commercial real estate – owner occupied$48,609 $52,666 $38,279 $62,759 $94,935 $239,351 $4,208 $540,807 
Current period gross charge-offs$— $— $— $— $90 $— $— $90 
Commercial real estate – non-owner occupied
Risk rating
Pass$44,585 $75,893 $12,774 $92,566 $145,726 $459,021 $9,081 $839,646 
Special mention— — — 755 — 9,168 — 9,923 
Substandard— — — 2,591 — 9,084 — 11,675 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total commercial real estate – non-owner occupied$44,585 $75,893 $12,774 $95,912 $145,726 $477,273 $9,081 $861,244 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Multifamily
Risk rating
Pass$9,107 $15,113 $5,480 $5,559 $11,238 $68,443 $14 $114,954 
Special mention— — — — — 280 — 280 
Substandard— — — — — 169 — 169 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total multifamily$9,107 $15,113 $5,480 $5,559 $11,238 $68,892 $14 $115,403 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Total commercial real estate
Risk rating
Pass$201,795 $237,889 $86,943 $170,136 $264,484 $770,825 $17,490 $1,749,562 
Special mention— — — 925 378 11,907 — 13,210 
Substandard— 264 423 2,753 4,952 14,578 — 22,970 
Doubtful— — — 410 243 12 — 665 
Loss— — — — — — — — 
Total commercial real estate$201,795 $238,153 $87,366 $174,224 $270,057 $797,322 $17,490 $1,786,407 
Total current period gross charge-offs$— $— $— $— $90 $— $— $90 
(1)As previously announced, on July 24, 2023, the Board of Directors approved a change in the Company's fiscal year end from June 30 to December 31. "2023-S" represents the six-month transition period ended December 31, 2023. All subsequent periods are based on a calendar year end.
Term Loans By Origination Fiscal Year
September 30, 202520252024
2023-S(1)
20232022PriorRevolvingTotal
Commercial and industrial
Risk rating
Pass$71,968 $74,420 $36,328 $31,220 $25,758 $22,496 $122,565 $384,755 
Special mention65 47 — 558 380 2,715 2,808 6,573 
Substandard— 1,495 — 252 1,946 3,163 124 6,980 
Doubtful
— — — 121 477 226 23 847 
Loss— — — — — — — — 
Total commercial and industrial$72,033 $75,962 $36,328 $32,151 $28,561 $28,600 $125,520 $399,155 
Current period gross charge-offs$— $50 $338 $241 $930 $3 $— $1,562 
Equipment finance
Risk rating
Pass$50,216 $88,985 $49,500 $85,260 $38,047 $17,916 $— $329,924 
Special mention— 6 298 807 261 253 — 1,625 
Substandard— 755 226 2,924 902 438 — 5,245 
Doubtful— 58 428 1,345 1,351 346 — 3,528 
Loss— — — — — — — — 
Total equipment finance$50,216 $89,804 $50,452 $90,336 $40,561 $18,953 $— $340,322 
Current period gross charge-offs$— $167 $293 $1,370 $2,388 $448 $— $4,666 
Municipal leases
Risk rating
Pass$12,681 $30,883 $16,145 $21,481 $19,561 $64,216 $— $164,967 
Special mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total municipal leases$12,681 $30,883 $16,145 $21,481 $19,561 $64,216 $— $164,967 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Total commercial
Risk rating
Pass$134,865 $194,288 $101,973 $137,961 $83,366 $104,628 $122,565 $879,646 
Special mention65 53 298 1,365 641 2,968 2,808 8,198 
Substandard— 2,250 226 3,176 2,848 3,601 124 12,225 
Doubtful— 58 428 1,466 1,828 572 23 4,375 
Loss— — — — — — — — 
Total commercial$134,930 $196,649 $102,925 $143,968 $88,683 $111,769 $125,520 $904,444 
Total current period gross charge-offs$— $217 $631 $1,611 $3,318 $451 $— $6,228 
Term Loans By Origination Fiscal Year
September 30, 202520252024
2023-S(1)
20232022PriorRevolvingTotal
Construction and land development
Risk rating
Pass$15,421 $14,079 $2,536 $11,433 $4,919 $2,312 $— $50,700 
Special mention— — — — — — — — 
Substandard— — 410 — — — — 410 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total construction and land development$15,421 $14,079 $2,946 $11,433 $4,919 $2,312 $— $51,110 
Current period gross charge-offs$— $— $— $— $— $133 $— $133 
One-to-four family
Risk rating
Pass$35,855 $39,143 $23,057 $156,288 $141,549 $222,315 $10,131 $628,338 
Special mention— — — — 1,532 304 — 1,836 
Substandard— 663 841 583 654 3,930 — 6,671 
Doubtful— — — — — 12 — 12 
Loss— — — — — — — — 
Total one-to-four family$35,855 $39,806 $23,898 $156,871 $143,735 $226,561 $10,131 $636,857 
Current period gross charge-offs$— $— $— $— $— $50 $— $50 
HELOCs
Risk rating
Pass$— $— $— $— $— $— $208,626 $208,626 
Special mention— — — — — — — — 
Substandard— — — — — — 7,496 7,496 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total HELOCs$— $— $— $— $— $— $216,122 $216,122 
Current period gross charge-offs$— $— $— $— $— $— $6 $6 
Total residential real estate
Risk rating
Pass$51,276 $53,222 $25,593 $167,721 $146,468 $224,627 $218,757 $887,664 
Special mention— — — — 1,532 304 — 1,836 
Substandard— 663 1,251 583 654 3,930 7,496 14,577 
Doubtful— — — — — 12 — 12 
Loss— — — — — — — — 
Total residential real estate$51,276 $53,885 $26,844 $168,304 $148,654 $228,873 $226,253 $904,089 
Total current period gross charge-offs$— $— $— $— $— $183 $6 $189 
Term Loans By Origination Fiscal Year
September 30, 202520252024
2023-S(1)
20232022PriorRevolvingTotal
Total consumer
Risk rating
Pass$1,348 $3,047 $12,496 $21,553 $5,339 $3,428 $231 $47,442 
Special mention— — — — — — — — 
Substandard14 25 143 677 123 234 21 1,237 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total consumer$1,362 $3,072 $12,639 $22,230 $5,462 $3,662 $252 $48,679 
Total current period gross charge-offs$1 $38 $109 $235 $60 $76 $— $519 
The following table presents the credit risk profile by risk grade for commercial real estate, commercial, residential real estate and consumer loans by origination year as of December 31, 2024. Also included in the table detailing loan balances are gross charge-offs for the year ended December 31, 2024.
Term Loans By Origination Fiscal Year
December 31, 20242024
2023-S(1)
202320222021PriorRevolvingTotal
Construction and land development
Risk rating
Pass$121,992 $42,548 $47,045 $43,534 $9,705 $6,501 $3,031 $274,356 
Special mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful
— — — — — — — — 
Loss— — — — — — — — 
Total construction and land development$121,992 $42,548 $47,045 $43,534 $9,705 $6,501 $3,031 $274,356 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Commercial real estate – owner occupied
Risk rating
Pass$54,032 $35,808 $64,558 $100,827 $78,902 $193,446 $5,131 $532,704 
Special mention— — 168 136 439 2,203 — 2,946 
Substandard— 273 683 1,337 465 6,531 — 9,289 
Doubtful— — — 526 — 25 — 551 
Loss— — — — — — — — 
Total commercial real estate – owner occupied$54,032 $36,081 $65,409 $102,826 $79,806 $202,205 $5,131 $545,490 
Current period gross charge-offs$— $— $77 $72 $— $208 $— $357 
Commercial real estate – non-owner occupied
Risk rating
Pass$71,321 $13,255 $97,479 $142,325 $173,674 $323,707 $9,482 $831,243 
Special mention— — 3,665 3,813 — 14,897 — 22,375 
Substandard— — 2,591 — — 9,885 — 12,476 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total commercial real estate – non-owner occupied$71,321 $13,255 $103,735 $146,138 $173,674 $348,489 $9,482 $866,094 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Multifamily
Risk rating
Pass$15,098 $5,501 $6,560 $19,010 $48,866 $25,071 $— $120,106 
Special mention— — — — — 87 — 87 
Substandard— — — — — 232 — 232 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total multifamily$15,098 $5,501 $6,560 $19,010 $48,866 $25,390 $— $120,425 
Current period gross charge-offs$— $— $— $— $— $10 $— $10 
Total commercial real estate
Risk rating
Pass$262,443 $97,112 $215,642 $305,696 $311,147 $548,725 $17,644 $1,758,409 
Special mention— — 3,833 3,949 439 17,187 — 25,408 
Substandard— 273 3,274 1,337 465 16,648 — 21,997 
Doubtful— — — 526 — 25 — 551 
Loss— — — — — — — — 
Total commercial real estate$262,443 $97,385 $222,749 $311,508 $312,051 $582,585 $17,644 $1,806,365 
Total current period gross charge-offs$— $— $77 $72 $— $218 $— $367 
(1)As previously announced, on July 24, 2023, the Board of Directors approved a change in the Company's fiscal year end from June 30 to December 31. "2023-S" represents the six-month transition period ended December 31, 2023. All subsequent periods are based on a calendar year end.
Term Loans By Origination Fiscal Year
December 31, 20242024
2023-S(1)
202320222021PriorRevolvingTotal
Commercial and industrial
Risk rating
Pass$81,746 $27,568 $41,728 $34,692 $10,773 $21,995 $89,095 $307,597 
Special mention— — 129 380 82 2,925 145 3,661 
Substandard— 279 794 1,570 509 1,046 124 4,322 
Doubtful
— — 116 — — 440 23 579 
Loss— — — — — — — — 
Total commercial and industrial$81,746 $27,847 $42,767 $36,642 $11,364 $26,406 $89,387 $316,159 
Current period gross charge-offs$— $— $1,783 $704 $52 $1,089 $21 $3,649 
Equipment finance
Risk rating
Pass$106,904 $62,236 $121,131 $67,636 $29,043 $10,342 $— $397,292 
Special mention— 78 467 586 293 197 — 1,621 
Substandard— — — 2,919 — — — 2,919 
Doubtful— 430 1,967 1,520 487 108 — 4,512 
Loss— — — — — 56 — 56 
Total equipment finance$106,904 $62,744 $123,565 $72,661 $29,823 $10,703 $— $406,400 
Current period gross charge-offs$106 $177 $2,366 $3,435 $549 $379 $— $7,012 
Municipal leases
Risk rating
Pass$28,903 $18,181 $24,404 $22,402 $24,376 $47,718 $— $165,984 
Special mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total municipal leases$28,903 $18,181 $24,404 $22,402 $24,376 $47,718 $— $165,984 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Total commercial
Risk rating
Pass$217,553 $107,985 $187,263 $124,730 $64,192 $80,055 $89,095 $870,873 
Special mention— 78 596 966 375 3,122 145 5,282 
Substandard— 279 794 4,489 509 1,046 124 7,241 
Doubtful— 430 2,083 1,520 487 548 23 5,091 
Loss— — — — — 56 — 56 
Total commercial$217,553 $108,772 $190,736 $131,705 $65,563 $84,827 $89,387 $888,543 
Total current period gross charge-offs$106 $177 $4,149 $4,139 $601 $1,468 $21 $10,661 
Term Loans By Origination Fiscal Year
December 31, 20242024
2023-S(1)
202320222021PriorRevolvingTotal
Construction and land development
Risk rating
Pass$13,559 $7,200 $21,370 $8,217 $2,694 $510 $— $53,550 
Special mention— — — — — — — — 
Substandard— — — — — 133 — 133 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total construction and land development$13,559 $7,200 $21,370 $8,217 $2,694 $643 $— $53,683 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
One-to-four family
Risk rating
Pass$39,669 $23,510 $153,504 $148,777 $96,103 $152,940 $8,840 $623,343 
Special mention— — — — — 332 — 332 
Substandard407 747 591 667 — 4,244 45 6,701 
Doubtful— — — — — 15 — 15 
Loss— — — — — — — — 
Total one-to-four family$40,076 $24,257 $154,095 $149,444 $96,103 $157,531 $8,885 $630,391 
Current period gross charge-offs$— $— $— $— $— $3 $— $3 
HELOCs
Risk rating
Pass$— $— $— $— $— $— $190,573 $190,573 
Special mention— — — — — — — — 
Substandard— — — — — — 4,715 4,715 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total HELOCs$— $— $— $— $— $— $195,288 $195,288 
Current period gross charge-offs$— $— $— $— $— $— $30 $30 
Total residential real estate
Risk rating
Pass$53,228 $30,710 $174,874 $156,994 $98,797 $153,450 $199,413 $867,466 
Special mention— — — — — 332 — 332 
Substandard407 747 591 667 — 4,377 4,760 11,549 
Doubtful— — — — — 15 — 15 
Loss— — — — — — — — 
Total residential real estate$53,635 $31,457 $175,465 $157,661 $98,797 $158,174 $204,173 $879,362 
Total current period gross charge-offs$— $— $— $— $— $3 $30 $33 
Term Loans By Origination Fiscal Year
December 31, 20242024
2023-S(1)
202320222021PriorRevolvingTotal
Total consumer
Risk rating
Pass$4,873 $18,123 $32,889 $8,597 $5,186 $2,944 $255 $72,867 
Special mention— — — — — — — — 
Substandard54 97 595 83 178 131 18 1,156 
Doubtful— — 4 — 2 — — 6 
Loss— — — — — — — — 
Total consumer$4,927 $18,220 $33,488 $8,680 $5,366 $3,075 $273 $74,029 
Total current period gross charge-offs$39 $173 $510 $255 $95 $57 $22 $1,151 
The following tables present aging analyses of past due loans (including nonaccrual loans) by segment and class as of the dates indicated. For loans with monthly payments, a loan is considered past due when the loan is in arrears two or more payments.
Past DueTotal Loans
30-89 Days90 Days+TotalCurrent
September 30, 2025
Commercial real estate
Construction and land development$— $— $— $268,953 $268,953 
Commercial real estate – owner occupied1,411 4,277 5,688 535,119 540,807 
Commercial real estate – non-owner occupied2,982 3,554 6,536 854,708 861,244 
Multifamily— — — 115,403 115,403 
Total commercial real estate4,393 7,831 12,224 1,774,183 1,786,407 
Commercial
Commercial and industrial3,024 2,969 5,993 393,162 399,155 
Equipment finance4,244 3,594 7,838 332,484 340,322 
Municipal leases— — — 164,967 164,967 
Total commercial7,268 6,563 13,831 890,613 904,444 
Residential real estate
Construction and land development— — — 51,110 51,110 
One-to-four family3,498 1,896 5,394 631,463 636,857 
HELOCs2,268 3,237 5,505 210,617 216,122 
Total residential real estate5,766 5,133 10,899 893,190 904,089 
Consumer348 216 564 48,115 48,679 
Total loans$17,775 $19,743 $37,518 $3,606,101 $3,643,619 
Past DueTotal Loans
30-89 Days90 Days+TotalCurrent
December 31, 2024
Commercial real estate
Construction and land development$— $— $— $274,356 $274,356 
Commercial real estate – owner occupied654 1,432 2,086 543,404 545,490 
Commercial real estate – non-owner occupied— 959 959 865,135 866,094 
Multifamily— — — 120,425 120,425 
Total commercial real estate654 2,391 3,045 1,803,320 1,806,365 
Commercial
Commercial and industrial1,160 3,056 4,216 311,943 316,159 
Equipment finance4,714 4,140 8,854 397,546 406,400 
Municipal leases— — — 165,984 165,984 
Total commercial5,874 7,196 13,070 875,473 888,543 
Residential real estate
Construction and land development419 132 551 53,132 53,683 
One-to-four family3,429 1,633 5,062 625,329 630,391 
HELOCs1,935 2,754 4,689 190,599 195,288 
Total residential real estate5,783 4,519 10,302 869,060 879,362 
Consumer391 260 651 73,378 74,029 
Total loans$12,702 $14,366 $27,068 $3,621,231 $3,648,299 
On September 26, 2024, Hurricane Helene made landfall causing significant property damage across certain parts of the Company's market areas, particularly in Western North Carolina. In an effort to assist customers in their post-Hurricane Helene recovery and clean-up efforts, in the fourth quarter of the year ended December 31, 2024 we granted payment deferrals of up to six months to provide short-term relief to impacted customers. The outstanding balance of these deferrals was $318,000 and $136.0 million at September 30, 2025 and December 31, 2024, respectively.
The following table presents the recorded investment in loans on nonaccrual status, by segment and class, including restructured loans. It also includes interest income recognized on nonaccrual loans for the nine months ended September 30, 2025.
September 30, 2025
December 31, 2024
90 Days+ &
Still Accruing as of September 30, 2025
Nonaccrual with No ACL as of September 30, 2025
Interest Income Recognized
Commercial real estate
Commercial real estate – owner occupied$7,189 $8,471 $— $2,894 $438 
Commercial real estate – non-owner occupied4,710 3,551 — 3,748 270 
Multifamily— 47 — — 1 
Total commercial real estate11,899 12,069 — 6,642 709 
Commercial
Commercial and industrial6,105 3,487 — 239 126 
Equipment finance5,597 4,666 — 772 177 
Total commercial11,702 8,153 — 1,011 303 
Residential real estate
Construction and land development410 132 — — 21 
One-to-four family2,336 2,916 — — 77 
HELOCs5,860 3,990 — — 54 
Total residential real estate8,606 7,038 — — 152 
Consumer370 407 — — 23 
Total loans$32,577 $27,667 $— $7,653 $1,187 
The following tables present analyses of the ACL on loans by segment for the periods indicated below. In addition to the provision (benefit) for credit losses on loans presented below, provisions of $260 and $918 for off-balance sheet credit exposures were recorded for the three and nine months ended September 30, 2025, respectively, while no provision for commercial paper was recorded for either period. Benefits of $15 and $35 for off-balance sheet credit exposures were recorded for the three and nine months ended September 30, 2024, respectively, while no provision for commercial paper was recorded for either period.
Three Months Ended September 30, 2025
Commercial Real EstateCommercialResidential Real EstateConsumerTotal
Balance at beginning of period$19,045 $15,569 $8,722 $803 $44,139 
Provision (benefit) for credit losses(56)2,370 (284)(275)1,755 
Charge-offs(90)(2,842)(1)(153)(3,086)
Recoveries— 138 91 49 278 
Net (charge-offs) recoveries(90)(2,704)90 (104)(2,808)
Balance at end of period$18,899 $15,235 $8,528 $424 $43,086 
Three Months Ended September 30, 2024
Commercial Real EstateCommercialResidential Real EstateConsumerTotal
Balance at beginning of period$20,539 $18,115 $9,103 $1,466 $49,223 
Provision for credit losses134 2,061 714 81 2,990 
Charge-offs(87)(3,987)— (370)(4,444)
Recoveries24 255 9 74 362 
Net (charge-offs) recoveries(63)(3,732)9 (296)(4,082)
Balance at end of period$20,610 $16,444 $9,826 $1,251 $48,131 
Nine Months Ended September 30, 2025
Commercial Real EstateCommercialResidential Real EstateConsumerTotal
Balance at beginning of period$19,284 $15,267 $9,664 $1,070 $45,285 
Provision (benefit) for credit losses(333)5,645 (1,057)(315)3,940 
Charge-offs(90)(6,228)(189)(519)(7,026)
Recoveries38 551 110 188 887 
Net (charge-offs) recoveries(52)(5,677)(79)(331)(6,139)
Balance at end of period$18,899 $15,235 $8,528 $424 $43,086 
Nine Months Ended September 30, 2024
Commercial Real EstateCommercialResidential Real EstateConsumerTotal
Balance at beginning of period$20,323 $17,025 $9,285 $2,008 $48,641 
Provision for credit losses558 7,381 442 54 8,435 
Charge-offs(295)(8,795)(60)(1,021)(10,171)
Recoveries24 833 159 210 1,226 
Net (charge-offs) recoveries(271)(7,962)99 (811)(8,945)
Balance at end of period$20,610 $16,444 $9,826 $1,251 $48,131 
A loan is considered to be collateral dependent when the borrower is experiencing financial difficulty and the repayment is expected to be provided substantially through the operation or sale of collateral. The following tables provide a breakdown between loans identified as CDAs and non-CDAs, by segment and class, as well as collateral coverage for those loans as of the dates indicated below:
Type and Extent of Collateral Securing CDAsNon-CDAs
September 30, 2025Residential PropertyInvestment PropertyCommercial PropertyBusiness AssetsTotal
Commercial real estate
Construction and land development$— $— $— $— $268,953 $268,953 
Commercial real estate – owner occupied— — 3,548 — 537,259 540,807 
Commercial real estate – non-owner occupied— — 4,710 — 856,534 861,244 
Multifamily— — — — 115,403 115,403 
Total commercial real estate— — 8,258 — 1,778,149 1,786,407 
Commercial
Commercial and industrial— — — 969 398,186 399,155 
Equipment finance— — — 1,932 338,390 340,322 
Municipal leases— — — — 164,967 164,967 
Total commercial— — — 2,901 901,543 904,444 
Residential real estate
Construction and land development— — — — 51,110 51,110 
One-to-four family— — — — 636,857 636,857 
HELOCs— — — — 216,122 216,122 
Total residential real estate— — — — 904,089 904,089 
Consumer— — — — 48,679 48,679 
Total$— $— $8,258 $2,901 $3,632,460 $3,643,619 
Total collateral value$— $— $9,860 $1,617 
Type and Extent of Collateral Securing CDAsNon-CDAs
December 31, 2024Residential PropertyInvestment PropertyCommercial PropertyBusiness AssetsTotal
Commercial real estate
Construction and land development$— $— $— $— $274,356 $274,356 
Commercial real estate – owner occupied— — 6,376 — 539,114 545,490 
Commercial real estate – non-owner occupied— — 3,820 — 862,274 866,094 
Multifamily— — — — 120,425 120,425 
Total commercial real estate— — 10,196 — 1,796,169 1,806,365 
Commercial
Commercial and industrial— — — 585 315,574 316,159 
Equipment finance— — — 717 405,683 406,400 
Municipal leases— — — — 165,984 165,984 
Total commercial— — — 1,302 887,241 888,543 
Residential real estate
Construction and land development— — — — 53,683 53,683 
One-to-four family— — — — 630,391 630,391 
HELOCs— — — — 195,288 195,288 
Total residential real estate— — — — 879,362 879,362 
Consumer— — — — 74,029 74,029 
Total$— $— $10,196 $1,302 $3,636,801 $3,648,299 
Total collateral value$— $— $13,938 $748 
Modifications to Borrowers Experiencing Financial Difficulty
The Company modifies loans to borrowers experiencing financial difficulty by providing principal forgiveness, a term extension, an other-than-insignificant payment delay or interest rate adjustments. In some cases, the Company provides multiple types of modifications on one loan. Typically, one type of modification, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another modification, such as principal forgiveness, may be granted. For loans included in the combination columns in the table below, multiple types of modifications have been made on the same loan within the current reporting period.
The following tables present the amortized cost basis of loans that were both experiencing financial difficulty and modified during the periods indicated, by class and type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial difficulty as compared to the amortized cost basis of each class of financing receivable is also presented. The Hurricane Helene-related deferrals previously referenced did not meet this definition and, therefore, were not included.
Three Months Ended September 30, 2025
Principal ForgivenessPayment DelayTerm ExtensionInterest Rate AdjustmentCombination Term Extension & Principal ForgivenessCombination Term Extension & Interest Rate Reduction% of Total Class of Financing Receivable
Commercial real estate
Commercial real estate – owner occupied$— $293 $— $— $— $— 0.05 %
Commercial loans— 
Commercial and industrial— 453 824 — — — 0.32 
Total$— $746 $824 $— $— $— 0.04 %
Three Months Ended September 30, 2024
Principal ForgivenessPayment DelayTerm ExtensionInterest Rate AdjustmentCombination Term Extension & Principal ForgivenessCombination Term Extension & Interest Rate Reduction% of Total Class of Financing Receivable
Commercial real estate
Commercial real estate – owner occupied$— $675 $— $161 $— $— 0.15 %
Nine Months Ended September 30, 2025
Principal ForgivenessPayment DelayTerm ExtensionInterest Rate AdjustmentCombination Term Extension & Principal ForgivenessCombination Term Extension & Interest Rate Reduction% of Total Class of Financing Receivable
Commercial real estate
Commercial real estate – owner occupied$— $1,067 $— $— $— $— 0.20 %
Commercial real estate – non-owner occupied— 755 350 — — — 0.13 
Commercial loans
Commercial and industrial— 3,308 1,243 115 — — 1.17 
Residential real estate loans
One-to-four family— — 50 — — — 0.01 
Total$— $5,130 $1,643 $115 $— $— 0.19 %
Nine Months Ended September 30, 2024
Principal ForgivenessPayment DelayTerm ExtensionInterest Rate AdjustmentCombination Term Extension & Principal ForgivenessCombination Term Extension & Interest Rate Reduction% of Total Class of Financing Receivable
Commercial real estate
Commercial real estate – owner occupied$— $675 $— $161 $— $— 0.15 %
Commercial real estate – non-owner occupied— 956 — — — — 0.11 
Commercial loans
Commercial and industrial— 2,137 630 147 — — 1.02 
Total$— $3,768 $630 $308 $— $— 0.10 %
The following tables present the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the period indicated below:
Three Months Ended September 30, 2025
Principal ForgivenessWeighted-Average Interest Rate ReductionWeighted-Average Term Extension (Years)
Commercial loans
Commercial and industrial$— — %10
Nine Months Ended September 30, 2025
Principal ForgivenessWeighted-Average Interest Rate ReductionWeighted-Average Term Extension (Years)
Commercial real estate
Commercial real estate – non-owner occupied$— — %6
Commercial loans
Commercial and industrial— 7.0 10
Residential real estate loans
One-to-four family— — 11
Total$— 7.0 %9
The following tables present loans that had a payment default during the period indicated that had previously been modified within the prior twelve months. For purposes of this table, a loan is considered to be in default when it becomes 30 days contractually past due under the modified terms.
Three Months Ended September 30, 2025
Principal ForgivenessPayment DelayTerm ExtensionInterest Rate Adjustment
Commercial loans
Commercial and industrial$— $1,928 $— $— 
Residential real estate loans
One-to-four family— — 50 — 
Total$— $1,928 $50 $— 
Three Months Ended September 30, 2024
Principal ForgivenessPayment DelayTerm ExtensionInterest Rate Adjustment
Commercial real estate
Commercial real estate – non-owner occupied$— $305 $— $— 
Commercial loans
Commercial and industrial— 637 — — 
Total$— $942 $— $— 
Nine Months Ended September 30, 2025
Principal ForgivenessPayment DelayTerm ExtensionInterest Rate Adjustment
Commercial real estate
Commercial real estate – owner occupied$— $675 $— $161 
Commercial loans
Commercial and industrial— 1,928 132 — 
Equipment finance— — — 115 
Residential real estate loans
One-to-four family— — 50 — 
Total$— $2,603 $182 $276 
Nine Months Ended September 30, 2024
Principal ForgivenessPayment DelayTerm ExtensionInterest Rate Adjustment
Commercial real estate
Commercial real estate – owner occupied$— $1,261 $— $— 
Commercial loans
Commercial and industrial— 637 — — 
Total$— $1,898 $— $— 
Off-Balance Sheet Credit Exposure
The Company maintains a separate reserve for credit losses on off-balance sheet credit exposures, including unfunded loan commitments, which is included in other liabilities on the consolidated balance sheet. The reserve for credit losses on off-balance sheet credit exposures is adjusted as a provision for credit losses in the consolidated statement of income. The estimate includes consideration of the likelihood that funding will occur and an estimate of ECLs on commitments expected to be funded over its estimated life, utilizing the same models and approaches for the Company's other loan portfolio segments described above, as these unfunded commitments share similar risk characteristics as its loan portfolio segments. The Company has identified the unfunded portion of certain lines of credit as unconditionally cancellable credit exposures, meaning the Company can cancel the unfunded commitment at any time. No credit loss estimate is reported for off-balance sheet credit exposures that are unconditionally cancellable by the Company or for undrawn amounts under such arrangements that may be drawn prior to the cancellation of the arrangement. At September 30, 2025 and December 31, 2024, the ACL on off-balance sheet credit exposures included in other liabilities was $3,590 and $2,672, respectively.