Loans

Summary of aging in past due loans and nonaccrual status, with and without an ACL, by loan segment

The following tables present the aging in past due loans and nonaccrual status, with and without an ACL, by loan segment as of December 31, 2023 and 2022:


	Accruing Interest
			30-89 Days		90 Days or		Nonaccrual		Nonaccrual
(dollars in thousands)	Current		Past Due		More Past Due		with ACL		without ACL		Total
December 31, 2023
Commercial	$	463,966	$	—	$	—	$	—	$	95	$	464,061
Construction and Land Development		232,724		—		—		—		80		232,804
1-4 Family Construction		64,838		—		—		—		249		65,087
Real Estate Mortgage:
1-4 Family Mortgage		402,396		—		—		—		—		402,396
Multifamily		1,373,431		15,110		—		—		—		1,388,541
CRE Owner Occupied		175,289		—		—		—		494		175,783
CRE Nonowner Occupied		987,306		—		—		—		—		987,306
Consumer and Other		8,303		—		—		—		1		8,304
Totals	$	3,708,253	$	15,110	$	—	$	—	$	919	$	3,724,282


	Accruing Interest
			30-89 Days		90 Days or		Nonaccrual		Nonaccrual
(dollars in thousands)	Current		Past Due		More Past Due		with ACL		without ACL		Total
December 31, 2022
Commercial	$	436,323	$	70	$	—	$	—	$	—	$	436,393
Construction and Land Development		295,448		—		—		—		106		295,554
1-4 Family Construction		70,242		—		—		—		—		70,242
Real Estate Mortgage:
HELOC and 1-4 Family Junior Mortgage		36,875		—		—		—		—		36,875
1st REM - 1-4 Family		50,945		—		—		—		—		50,945
LOCs and 2nd REM - Rentals		27,985		—		—		—		—		27,985
1st REM - Rentals		239,553		116		—		—		—		239,669
Multifamily		1,306,738		—		—		—		—		1,306,738
CRE Owner Occupied		149,372		—		—		—		533		149,905
CRE Nonowner Occupied		947,008		—		—		—		—		947,008
Consumer and Other		8,132		—		—		—		—		8,132
Totals	$	3,568,621	$	186	$	—	$	—	$	639	$	3,569,446

Summary of the activity in the allowance for loan losses by segment

On January 1, 2023, the Company adopted CECL, which added $650,000 to the total ACL. Under CECL, the Company recorded a $2.1 million provision for credit losses on loans for the year ended December 31, 2023, compared to a $7.7 million and $5.2 million provision for loan losses for the years ended December 31, 2022 and 2021, respectively, under the incurred loss method. The following table presents the activity in the allowance for credit losses, by segment, for the year ended December 31, 2023:


			Construction								CRE		CRE
			and Land		1--4 Family		1--4 Family				Owner		Non-owner		Consumer
(dollars in thousands)	Commercial		Development		Construction		Mortgage		Multifamily		Occupied		Occupied		and Other		Unallocated		Total
Allowance for Credit Losses for Loans:
Balance at January 1, 2023	$	6,501	$	3,911	$	845	$	4,325	$	17,459	$	1,965	$	12,576	$	151	$	263	$	47,996
Impact of Adopting CECL		(1,158)		(1,070)		(235)		(1,778)		3,318		(943)		2,869		(90)		(263)		650
Provision for Credit Losses for Loans		225		(685)		(52)		99		1,440		162		780		81		—		2,050
Loans Charged-off		(180)		—		—		—		—		—		—		(44)		—		(224)
Recoveries of Loans		10		—		—		5		—		—		—		7		—		22
Balance at December 31, 2023	$	5,398	$	2,156	$	558	$	2,651	$	22,217	$	1,184	$	16,225	$	105	$	—	$	50,494

The following table presents the activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2022 and 2021, prepared using the previous GAAP incurred loss method prior to the adoption of CECL:


			Construction								CRE		CRE
			and Land		1--4 Family		1--4 Family				Owner		Non-owner		Consumer
(dollars in thousands)	Commercial		Development		Construction		Mortgage		Multifamily		Occupied		Occupied		and Other		Unallocated		Total
Allowance for Loan Losses:
Balance at January 1, 2021	$	5,773	$	1,679	$	812	$	3,972	$	9,517	$	1,162	$	10,991	$	203	$	732	$	34,841
Provision for Loan Losses		488		1,460		(194)		(236)		3,093		301		344		(24)		(82)		5,150
Loans Charged-off		(28)		—		—		(5)		—		—		—		(41)		—		(74)
Recoveries of Loans		36		—		—		26		—		32		—		9		—		103
Balance at December 31, 2021	$	6,269	$	3,139	$	618	$	3,757	$	12,610	$	1,495	$	11,335	$	147	$	650	$	40,020
Provision for Loan Losses		235		772		227		280		4,849		470		1,241		13		(387)		7,700
Loans Charged-off		(13)		—		—		—		—		—		—		(24)		—		(37)
Recoveries of Loans		10		—		—		288		—		—		—		15		—		313
Balance at December 31, 2022	$	6,501	$	3,911	$	845	$	4,325	$	17,459	$	1,965	$	12,576	$	151	$	263	$	47,996

The following tables present the balance in the allowance for credit losses and the recorded investment in loans, by segment, based on impairment method as of December 31, 2023 and 2022:


			Construction								CRE		CRE
			and Land		1--4 Family		1--4 Family				Owner		Non-owner		Consumer
(dollars in thousands)	Commercial		Development		Construction		Mortgage		Multifamily		Occupied		Occupied		and Other		Unallocated		Total
ACL at December 31, 2023
Individually Evaluated for Impairment	$	8	$	—	$	—	$	—	$	—	$	—	$	95	$	—	$	—	$	103
Collectively Evaluated for Impairment		5,390		2,156		558		2,651		22,217		1,184		16,130		105		—		50,391
Totals	$	5,398	$	2,156	$	558	$	2,651	$	22,217	$	1,184	$	16,225	$	105	$	—	$	50,494

ALL at December 31, 2022
Individually Evaluated for Impairment	$	71	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	71
Collectively Evaluated for Impairment		6,430		3,911		845		4,325		17,459		1,965		12,576		151		263		47,925
Totals	$	6,501	$	3,911	$	845	$	4,325	$	17,459	$	1,965	$	12,576	$	151	$	263	$	47,996


			Construction								CRE		CRE
			and Land		1--4 Family		1--4 Family				Owner		Non-owner		Consumer
(dollars in thousands)	Commercial		Development		Construction		Mortgage		Multifamily		Occupied		Occupied		and Other		Total
Loans at December 31, 2023
Individually Evaluated for Impairment	$	16,143	$	80	$	249	$	689	$	—	$	1,559	$	17,138	$	—	$	35,858
Collectively Evaluated for Impairment		447,918		232,724		64,838		401,707		1,388,541		174,224		970,168		8,304		3,688,424
Totals	$	464,061	$	232,804	$	65,087	$	402,396	$	1,388,541	$	175,783	$	987,306	$	8,304	$	3,724,282

Loans at December 31, 2022
Individually Evaluated for Impairment	$	19,675	$	106	$	—	$	392	$	—	$	1,637	$	6,239	$	—	$	28,049
Collectively Evaluated for Impairment		416,718		295,448		70,242		355,082		1,306,738		148,268		940,769		8,132		3,541,397
Totals	$	436,393	$	295,554	$	70,242	$	355,474	$	1,306,738	$	149,905	$	947,008	$	8,132	$	3,569,446

Summary of impaired loans by loan segment

The following table presents information regarding total carrying amounts and total unpaid principal balances of impaired loans by loan segment as of December 31, 2022:


	December 31, 2022
	Recorded		Principal		Related
(dollars in thousands)	Investment		Balance		Allowance
Loans With No Related Allowance for Loan Losses:
Commercial	$	19,508	$	19,508	$	—
Construction and Land Development		106		713		—
Real Estate Mortgage:
1-4 Family Mortgage		392		392		—
CRE Owner Occupied		1,637		1,726		—
CRE Nonowner Occupied		6,239		6,239		—
Totals		27,882		28,578		—

Loans With An Allowance for Loan Losses:
Commercial		167		167		71
Totals		167		167		71
Grand Totals	$	28,049	$	28,745	$	71

The following table presents information regarding the average balances and interest income recognized on impaired loans by loan segment for the years ended December 31, 2022 and 2021:


	Year Ended December 31,
	2022				2021
	Average		Interest		Average		Interest
(dollars in thousands)	Investment		Recognized		Investment		Recognized
Loans With No Related Allowance for Loan Losses:
Commercial	$	21,276	$	782	$	5,008	$	268
Construction and Land Development		117		—		141		—
Real Estate Mortgage:
1-4 Family Mortgage		402		21		1,401		71
CRE Owner Occupied		1,755		65		2,471		106
CRE Nonowner Occupied		6,390		342		4,247		215
Totals		29,940		1,210		13,268		660

Loans With An Allowance for Loan Losses:
Commercial		180		5		13,761		755
Consumer and Other		—		—		—		—
Totals		180		5		13,761		755
Grand Totals	$	30,120	$	1,215	$	27,029	$	1,415