Loans and Allowance for Credit Losses

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 loans on nonaccrual status, with and without an allowance for credit losses, or ACL, by loan segment as of June 30, 2024 and December 31, 2023:


	Accruing Interest
			30-89 Days		90 Days or		Nonaccrual		Nonaccrual
(dollars in thousands)	Current		Past Due		More Past Due		with ACL		without ACL		Total
June 30, 2024
Commercial	$	518,085	$	502	$	—	$	80	$	95	$	518,762
Construction and Land Development		134,028		—		—		—		68		134,096
1-4 Family Construction		60,551		—		—		—		—		60,551
Real Estate Mortgage:
1-4 Family Mortgage		416,944		—		—		—		—		416,944
Multifamily		1,404,835		—		—		—		—		1,404,835
CRE Owner Occupied		185,988		—		—		—		—		185,988
CRE Nonowner Occupied		1,069,615		—		—		—		435		1,070,050
Consumer and Other		9,159		—		—		—		—		9,159
Totals	$	3,799,205	$	502	$	—	$	80	$	598	$	3,800,385


	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

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

The following tables present the activity in the ACL, by segment, for the three and six months ended June 30, 2024 and 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		Total
Three Months Ended June 30, 2024
Allowance for Credit Losses for Loans:
Beginning Balance	$	5,607	$	1,828	$	577	$	2,754	$	22,230	$	1,235	$	17,005	$	111	$	51,347
Provision for Credit Losses for Loans		409		(608)		(55)		18		250		23		576		(13)		600
Loans Charged-off		—		—		—		—		—		—		—		(10)		(10)
Recoveries of Loans		2		—		—		2		—		—		—		8		12
Total Ending Allowance Balance	$	6,018	$	1,220	$	522	$	2,774	$	22,480	$	1,258	$	17,581	$	96	$	51,949

Six Months Ended June 30, 2024
Allowance for Credit Losses for Loans:
Beginning Balance	$	5,398	$	2,156	$	558	$	2,651	$	22,217	$	1,184	$	16,225	$	105	$	50,494
Provision for Credit Losses for Loans		615		(936)		(36)		120		263		74		1,356		(6)		1,450
Loans Charged-off		—		—		—		—		—		—		—		(12)		(12)
Recoveries of Loans		5		—		—		3		—		—				9		17
Total Ending Allowance Balance	$	6,018	$	1,220	$	522	$	2,774	$	22,480	$	1,258	$	17,581	$	96	$	51,949


			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
Three Months Ended June 30, 2023
Allowance for Credit Losses for Loans:
Beginning Balance	$	5,566	$	3,169		806	$	2,717	$	20,989	$	1,083	$	15,744	$	74	$	—	$	50,148
Provision for Credit Losses for Loans		(129)		307		(152)		118		175		3		232		(4)		—		550
Loans Charged-off		—		—		—		—		—		—		—		(3)		—		(3)
Recoveries of Loans		2		—		—		1		—		—		—		3		—		6
Total Ending Allowance Balance	$	5,439	$	3,476	$	654	$	2,836	$	21,164	$	1,086	$	15,976	$	70	$	—	$	50,701

Six Months Ended June 30, 2023
Allowance for Credit Losses for Loans:
Beginning Balance, Prior to Adoption of CECL	$	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
Balance as of January 1, 2023, as Adjusted for Adoption of CECL		5,343		2,841		610		2,547		20,777		1,022		15,445		61		—		48,646
Provision for Credit Losses for Loans		91		635		44		287		387		64		531		11		—		2,050
Loans Charged-off		—		—		—		—		—		—		—		(7)		—		(7)
Recoveries of Loans		5		—		—		2		—		—		—		5		—		12
Total Ending Allowance Balance	$	5,439	$	3,476	$	654	$	2,836	$	21,164	$	1,086	$	15,976	$	70	$	—	$	50,701