Loans and Allowance for Credit Losses

12 Months Ended

Dec. 31, 2023

Note 4. Loans and Allowance for Credit Losses

The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures, which included loans held for investment and commitments to extend credit (loan commitments and stand-by letters of credit), respectively. Results for reporting periods beginning after January 1, 2023 are presented under ASC 326, while prior period amounts are reported in accordance with previously applicable GAAP.

All loan and ACL information presented as of December 31, 2023 is in accordance with ASC 326. As a result, the presentation of information pre-ASC 326 and post-ASC 326 adoption will not be comparable for most disclosures.

The following table presents loans held for investment, including Paycheck Protection Program ("PPP") loans, as of the dates stated.


	December 31,
(Dollars in thousands)	2023		2022
Commercial and industrial	$	506,558	$	590,049
Paycheck Protection Program		2,386		11,967
Real estate – construction, commercial		180,052		183,301
Real estate – construction, residential		75,832		76,599
Real estate – mortgage, commercial		870,540		864,989
Real estate – mortgage, residential		730,110		631,772
Real estate – mortgage, farmland		5,470		6,599
Consumer		59,169		47,423
Gross loans		2,430,117		2,412,699
Deferred loan fees, net of costs		830		(1,640	)
Total	$	2,430,947	$	2,411,059

The Company has pledged certain commercial and residential mortgages as collateral for borrowings with the FHLB. Loans totaling $767.1 million and $436.0 million were pledged as of December 31, 2023 and 2022, respectively. The Company has pledged certain commercial and industrial loans totaling $161.0 million as collateral for borrowings with the FRB Discount Window as of December 31, 2023. Additionally, PPP loans were pledged as collateral for Paycheck Protection Program Liquidity Facility ("PPPLF") advances in the amount of $0 and $51 thousand as of December 31, 2023 and 2022, respectively.

The following table present the aging of the recorded investment of loans held for investment by loan category as of the dates stated.


	December 31, 2023
(Dollars in thousands)	Current Loans		30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due & Accruing		Nonaccrual		Total Loans
Commercial and industrial	$	462,553	$	2,235	$	632	$	1,709	$	39,429	$	506,558
Paycheck Protection Program		2,386		—		—		—		—		2,386
Real estate – construction, commercial		177,653		2,016		—		—		383		180,052
Real estate – construction, residential		75,309		523		—		—		—		75,832
Real estate – mortgage, commercial		855,263		2,109		714		574		11,880		870,540
Real estate – mortgage, residential		717,141		5,101		288		—		7,580		730,110
Real estate – mortgage, farmland		5,470		—		—		—		—		5,470
Consumer		55,084		2,298		279		754		754		59,169
Deferred loan fees, net of costs		830		—		—		—		—		830
Total Loans	$	2,351,689	$	14,282	$	1,913	$	3,037	$	60,026	$	2,430,947

The following table presents the recorded investment of nonaccrual loans held for investment by loan category as of the date stated.


	December 31, 2023
(Dollars in thousands)	Nonaccrual Loans with No ACL		Nonaccrual Loans with an ACL		Total Nonaccrual Loans
Commercial and industrial	$	1,487	$	37,942	$	39,429
Real estate – construction, commercial		—		383		383
Real estate – construction, residential		—		—		—
Real estate – mortgage, commercial		2,024		9,856		11,880
Real estate – mortgage, residential		577		7,003		7,580
Consumer		—		754		754
Total	$	4,088	$	55,938	$	60,026

For the year ended December 31, 2023, the Company recognized $223 thousand of interest income from nonaccrual loans.

Credit Quality Indicators

The Company segments loans held for investment into risk categories based on relevant information about the expected ability of borrowers to repay debt, such as current financial information, historical payment performance, experience, collateral adequacy, credit documentation, and current economic trends, among other factors. Management assigns loan risk grades by a numerical system as an indication of credit quality of its portfolio of loans held for investment. The Company uses the following definitions for loan risk ratings and periodically evaluates the appropriateness of these ratings across its loan portfolio. Independent third-party loan reviews are periodically performed on the Company's loan portfolio and such reviews are used to validate management's determination of loan risk grades. Bank regulatory agencies also periodically review the Company's loan portfolio, including loan risk grades and may, on occasion, change a grade based on their judgment of the facts at the time of review.

Risk Grade 1 – Strong: This grade is reserved for loans to the strongest of borrowers. These loans are to individuals or businesses where the probability of default is extremely low to the Bank and are secured with collateral where the loss given default is unlikely because of the source of repayment such as a lien on a deposit account held at the Bank. Character, credit history, and ability of individuals or company principals are excellent. High liquidity, minimum risk, strong ratios, and low servicing cost are present.

Risk Grade 2 – Minimal: This grade is reserved for loans to borrowers who are deemed exceptionally strong. These loans are within established guidelines and where the borrowers have documented significant overall financial strength with consistent and predictable cash flows. These loans have excellent sources of repayment, significant balance sheet liquidity, no significant identifiable risk of collection, and conform in all respects to policy, underwriting standards, and federal and state regulations (no exceptions of any kind). In addition, guarantor support, when provided, is viewed as excellent.

Risk Grade 3 – Acceptable: This grade is reserved for loans to borrowers who are deemed strong. These loans have adequate sources of repayment, with minimal identifiable risk of collection. Generally, loans assigned this risk grade will demonstrate the following characteristics: (1) conformity in all respects with policy, guidelines, underwriting standards, and federal and state regulations (no exceptions of any kind), (2) documented historical cash flow that meets or exceeds required minimum guidelines, or that can be supplemented with verifiable cash flow from other sources, and (3) adequate secondary sources to liquidate the debt. In addition, guarantor support, when provided, is viewed as strong.

Risk Grade 4 – Satisfactory: This grade is given to satisfactory loans containing more, but deemed acceptable, risk and where the borrower is assessed as sound. These loans have adequate sources of repayment, with minimal identifiable risk of collection. Loans assigned this risk grade will demonstrate the following characteristics: (1) general conformity to the Bank's underwriting requirements, with limited exceptions to policy, product, or underwriting guidelines. All exceptions noted have documented mitigating factors that offset any additional risk associated with the exceptions noted, (2) documented historical cash flow that meets or exceeds required minimum guidelines, or that can be supplemented with verifiable cash flow from other sources, and (3) adequate secondary sources to liquidate the debt. In addition, guarantor support, when provided, is viewed as satisfactory.

Risk Grade 5 – Watch: This grade is for satisfactory loans containing acceptable but elevated risk. These loans are characterized by borrowers who exhibit signs of financial distress or experience unstable or unfavorable change(s) adversely impacting their current or expected financial condition. The borrower's management is deemed to be satisfactory, the collateral securing the loan may have decreased in value, the debt service coverage ratio is inconsistent or breakeven but mostly positive, and/or guarantor support, if any, is limited or marginal. Loans classified as Watch warrant additional monitoring by management.

Risk Grade 6 – Special Mention: This grade is for loans that 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 Bank's credit position at some future date. Special Mention loans are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. Special mention credits typically do not conform to underwriting guidelines and/or exceptions without mitigating factors, or have emerging weaknesses that may or may not be cured with the passage of time.

Risk Grade 7 – Substandard: A substandard loan is inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified as substandard must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt; they are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. The probability of default is likely and may have occurred. Loans in this category are characterized by deterioration in quality exhibited by any number of well-defined weaknesses requiring corrective action. The weaknesses may include, but are not limited to: (1) current or expected unprofitable operations, (2) inadequate debt service coverage, (3) declining or inadequate liquidity, (4) improper loan structure, (5) questionable or weak repayment sources, and (6) lack of well-defined secondary repayment source. There is a distinct possibility of loss and the Bank will sustain some loss if the deficiencies are not corrected.

Risk Grade 8 – Doubtful: Loans classified doubtful have all the weaknesses inherent in loans classified substandard, with the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable. However, these loans are not yet rated as loss because certain events may occur which would salvage the Bank's position, which can include, but is not limited to (1) an injection of capital, (2) alternative financing, and (3) liquidation of assets or the pledging of additional collateral. Doubtful is a temporary grade where a loss is expected but is presently not quantified with any degree of accuracy. Once the loss position is determined, the amount is charged off against the allowance for credit losses.

Risk Grade 9 – Loss: Loans classified loss are considered uncollectible and of such little value that continuance as assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer charging off the worthless loan, even though partial recovery may be effected in the future. Probable loss portions deemed uncollectible are charged off promptly against the allowance for credit losses.

The following table presents the recorded investment of loans held for investment by internal loan risk grade by year of origination as of December 31, 2023. Also presented are current period gross charge-offs by loan type as of and for the year ended December 31, 2023.


	Term Loans Recorded Investment Basis by Origination Year
(Dollars in thousands)	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
Commercial and industrial
Risk Grades 1 - 4	$	15,830	$	114,291	$	29,887	$	25,429	$	8,217	$	14,200	$	138,267	$	346,121
Risk Grades 5 - 6		26,563		40,399		12,759		6,305		819		1,537		19,722		108,104
Risk Grade 7		—		877		3,623		829		543		134		9,191		15,197
Risk Grade 8		—		34,203		2,554		—		—		379		—		37,136
Total		42,393		189,770		48,823		32,563		9,579		16,250		167,180		506,558
Current period gross charge-offs		2,266		21,086		1,067		1,920		1,211		164		125		27,839

Paycheck Protection Program
Risk Grades 1 - 4		—		—		2,386		—		—		—		—		2,386
Total		—		—		2,386		—		—		—		—		2,386

Real estate – construction, commercial
Risk Grades 1 - 4		8,533		85,687		33,344		14,690		6,358		5,589		4,367		158,568
Risk Grades 5 - 6		4,213		11,072		760		293		—		738		3,827		20,903
Risk Grade 7		119		46		40		—		—		376		—		581
Total		12,865		96,805		34,144		14,983		6,358		6,703		8,194		180,052
Current period gross charge-offs		—		—		—		—		8		28		—		36

Real estate – construction, residential
Risk Grades 1 - 4		31,611		22,734		3,867		59		741		67		10,656		69,735
Risk Grades 5 - 6		1,486		2,672		—		167		200		—		—		4,525
Risk Grade 7		367		1,205		—		—		—		—		—		1,572
Total		33,464		26,611		3,867		226		941		67		10,656		75,832

Real estate – mortgage, commercial
Risk Grades 1 - 4		14,671		280,479		121,257		144,498		42,226		123,774		20,332		747,237
Risk Grades 5 - 6		2,841		25,075		9,038		19,597		12,921		27,778		4,214		101,464
Risk Grade 7		323		—		8,202		4,938		111		8,265		—		21,839
Total		17,835		305,554		138,497		169,033		55,258		159,817		24,546		870,540

Real estate – mortgage, residential
Risk Grades 1 - 4		51,042		218,375		121,872		69,165		27,877		132,986		55,327		676,644
Risk Grades 5 - 6		12,014		9,339		677		1,944		2,122		7,281		3,255		36,632
Risk Grade 7		—		2,240		2,446		1,812		943		9,307		85		16,833
Risk Grade 8		—		—		—		—		—		1		—		1
Total		63,056		229,954		124,995		72,921		30,942		149,575		58,667		730,110
Current period gross charge-offs		—		744		—		648		—		206		32		1,630

Real estate – mortgage, farmland
Risk Grades 1 - 4		—		729		1,397		—		1,520		1,562		115		5,323
Risk Grades 5 - 6		147		—		—		—		—		—		—		147
Total		147		729		1,397		—		1,520		1,562		115		5,470

Consumer
Risk Grades 1 - 4		26,535		14,215		3,598		2,724		1,137		466		8,766		57,441
Risk Grades 5 - 6		61		42		12		12		8		433		495		1,063
Risk Grade 7		14		259		115		131		44		102		—		665
Total		26,610		14,516		3,725		2,867		1,189		1,001		9,261		59,169
Current period gross charge-offs		1,493		421		218		60		53		65		4		2,314

Total Loans
Risk Grades 1 - 4	$	148,222	$	736,510	$	317,608	$	256,565	$	88,076	$	278,644	$	237,830	$	2,063,455
Risk Grades 5 - 6		47,325		88,599		23,246		28,318		16,070		37,767		31,513		272,838
Risk Grade 7		823		4,627		14,426		7,710		1,641		18,184		9,276		56,687
Risk Grade 8		—		34,203		2,554		—		—		380		—		37,137
Total	$	196,370	$	863,939	$	357,834	$	292,593	$	105,787	$	334,975	$	278,619	$	2,430,117
Total current period gross charge-offs	$	3,759	$	22,251	$	1,285	$	2,628	$	1,272	$	463	$	161	$	31,819

Of the $37.1 million of commercial and industrial loans classified as doubtful (risk grade 8) as of December 31, 2023, $34.2 million were attributable to a group of specialty finance loans with a collective specific reserve, a component of the ACL, of $9.6 million as of the same date. There were no loans classified as loss (risk grade 9) as of December 31, 2023.

The following table presents an analysis of the change in the ACL by major loan segment as of the period stated. Loan segments are presented as either commercial or consumer as follows:

•

Commercial – Commercial and industrial; PPP; real estate – construction, commercial; real estate – mortgage, commercial; and real estate – mortgage, farmland;

•

Consumer – real estate – construction, residential; real estate – mortgage, residential; and consumer.


	December 31, 2023
(Dollars in thousands)	Commercial			Consumer			Total
Balance, beginning of period	$	27,070		$	3,670		$	30,740
Impact of ASC 326 adoption		2,926			4,492			7,418
Charge-offs		(27,874	)		(3,945	)		(31,819	)
Recoveries		3,984			867			4,851
Net charge-offs		(23,890	)		(3,078	)		(26,968	)
Provision for credit losses - loans		21,648			3,055			24,703
Balance, end of period	$	27,754		$	8,139		$	35,893

The increase in the ACL from the prior period was primarily attributable to specific reserve needs for a portfolio of specialty finance loans (classified as commercial and industrial loans) and the adoption of ASC 326 effective January 1, 2023, partially offset by net chargeoffs. Of the $31.8 million in gross loan charge-offs for the year ended December 31, 2023, $19.5 million were for speciality finance loans originated in 2022.

There were no material changes to the assumptions, loss factors (both quantitative and qualitative), or reasonable and supportable forecasts used in the estimation of the ACL for the year ended December 31, 2023.

Excluded from the ACL as of December 31, 2023 was $13.2 million of accrued interest attributable to loans held for investment, which is included in accrued interest receivable on the consolidated balance sheet.

The following table presents accrued interest receivable by loan type reversed from interest income associated with loans held for investment that were placed on nonaccrual status during the year ended December 31, 2023.


(Dollars in thousands)	December 31, 2023
Commercial and industrial	$	179
Real estate – construction, commercial		7
Real estate – construction, residential		29
Real estate – mortgage, commercial		300
Real estate – mortgage, residential		80
Consumer		16
Total	$	611

The following table presents the amortized cost of collateral-dependent loans as of the date stated.


(Dollars in thousands)	December 31, 2023
Commercial and industrial	$	67,555
Real estate – construction, commercial		6,309
Real estate – construction, residential		2,303
Real estate – mortgage, commercial		13,401
Real estate – mortgage, residential		7,337
Total collateral-dependent loans	$	96,905

Acquired Loans

As of December 31, 2023, the recorded investment of PCD loans totaled $51.0 million with an estimated ACL of $529 thousand. The remaining non-credit discount on PCD loans was $3.8 million as of December 31, 2023.

Modified Loans

The Company closely monitors the performance of borrowers experiencing financial difficulty that have been granted certain loan modifications it would otherwise not consider.

The following table presents information on modified loans as of the date stated.


	December 31, 2023
(Dollars in thousands)	Number of Loans		Recorded Investment		Recorded Investment of Modified Loans to Gross Loans by Category			Financial Effect
Modification - term extension and forbearance								Forbearance agreements
Commercial and industrial (1)		3	$	36,930		7.29	%
Real estate – mortgage, commercial		2		6,087		0.70	%
Real estate – mortgage, residential		1		129		0.02	%
Real estate – construction, residential		1		155		0.20	%
Modification - payment deferral								Payment deferral 6-9 months
Commercial and industrial		1		182		0.04	%
Real estate - mortgage, residential		1		577		0.08	%
Total		9	$	44,060		1.81	%
(1) Included in this balance was a $32.8 million loan that was modified via a forbearance agreement in the second quarter of 2023 under which the borrower defaulted in the same period. The Company received cash payments of $4.5 million in the first half of 2023 for interest, which were applied to the book principal balance of the loan. This loan is collateral-dependent, is on nonaccrual status, and has a specific reserve of $9.6 million as of December 31, 2023. Subsequent to December 31, 2023, the Company received cash payments totaling $3.0 million, which were applied to the book principal balance of the loan.

The following table presents an aging analysis of the recorded investment of loans modified as of the date stated.


	December 31, 2023
(Dollars in thousands)	Current Loans		30-89 Days Past Due		Greater than 90 Days Past Due & Accruing		Nonaccrual		Total
Commercial and industrial	$	1,626	$	—	$	—	$	35,486	$	37,112
Real estate – mortgage, commercial		—		—		—		6,087		6,087
Real estate – mortgage, residential		129		—		—		577		706
Real estate – construction, residential		155		—		—		—		155
Total modified loans	$	1,910	$	—	$	—	$	42,150	$	44,060

As of and for the year ended December 31, 2023, three nonaccrual loans in the table above totaling $33.5 million had a payment default, the largest of which was the $32.8 million commercial and industrial loan noted above.

Four residential mortgage loans with a total recorded investment of $134 thousand were in the process of foreclosure as of December 31, 2023, and none as of December 31, 2022.

Pre-ASC 326 Adoption Disclosures

Prior to the adoption of ASC 326 on January 1, 2023, the Company calculated the allowance for loan losses under the incurred loss methodology. The following disclosures are presented under this previously applicable GAAP for the applicable prior periods.

The following table presents the aging of the amortized cost of loans held for investment as of the date stated.


	December 31, 2022
(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due & Accruing		Nonaccrual		Total Past Due & Nonaccrual		PCI Loans		Current Loans			Total Loans
Commercial and industrial	$	488	$	279	$	—	$	68,039	$	68,806	$	1,481	$	519,762		$	590,049
Paycheck Protection Program		—		—		—		—		—		—		11,967			11,967
Real estate – construction, commercial		1,137		19		—		714		1,870		—		181,431			183,301
Real estate – construction, residential		1,416		1,204		—		—		2,620		7		73,972			76,599
Real estate – mortgage, commercial		6,198		297		6,234		1,658		14,387		51,223		799,379			864,989
Real estate – mortgage, residential		4,544		231		1,998		5,143		11,916		5,678		614,178			631,772
Real estate – mortgage, farmland		—		75		—		—		75		—		6,524			6,599
Consumer		880		200		28		495		1,603		359		45,461			47,423
Less: deferred loan fees, net of costs		—		—		—		—		—		—		(1,640	)		(1,640	)
Total Loans	$	14,663	$	2,305	$	8,260	$	76,049	$	101,277	$	58,748	$	2,251,034		$	2,411,059

The following table presents the aging of the recorded investment of PCI loans as of the date stated.


	December 31, 2022
(Dollars in thousands)	Current Loans		30-89 Days Past Due		Greater than 90 Days Past Due & Accruing		Total Loans
Commercial and industrial	$	—	$	—	$	1,481	$	1,481
Real estate – construction, commercial		—		—		7		7
Real estate – mortgage, commercial		—		—		51,223		51,223
Real estate – mortgage, residential		354		—		5,324		5,678
Consumer		—		—		359		359
Total PCI Loans	$	354	$	—	$	58,394	$	58,748

The following table presents the outstanding principal balance and related recorded investment of these acquired loans included in the consolidated balance sheet as of the date stated.


(Dollars in thousands)	December 31, 2022
PCI loans
Outstanding principal balance	$	64,911
Recorded investment		58,748
Purchased performing loans
Outstanding principal balance		513,461
Recorded investment		511,752
Total acquired loans
Outstanding principal balance		578,372
Recorded investment		570,500

The following table presents the changes in the accretable yield for PCI loans for the period stated.


(Dollars in thousands)	December 31, 2022
Balance, beginning of period	$	16,849
Accretion		(9,410	)
Reclassification of nonaccretable difference due to improvement in expected cash flows		3,804
Other changes, net		(71	)
Balance, end of period	$	11,172

The following table presents a summary of the loan portfolio individually and collectively evaluated for impairment as of the date stated.


	December 31, 2022
(Dollars in thousands)	Individually Evaluated for Impairment		Collectively Evaluated for Impairment			Total Loan Balances			Related Allowance for Loan Losses
PCI loans:
Commercial and industrial	$	—	$	1,481		$	1,481		$	—
Real estate – construction, commercial		—		7			7			—
Real estate – mortgage, commercial		—		51,223			51,223			3
Real estate – mortgage, residential		—		5,678			5,678			—
Consumer		—		359			359			—
Total PCI loans		—		58,748			58,748			3
Originated and purchased performing loans:
Commercial and industrial		67,654		520,914			588,568			23,073
Real estate – construction, commercial		521		182,773			183,294			1,637
Real estate – construction, residential		—		76,599			76,599			628
Real estate – mortgage, commercial		4,634		809,132			813,766			2,353
Real estate – mortgage, residential		834		625,260			626,094			1,760
Real estate – mortgage, farmland		—		6,599			6,599			4
Consumer		—		47,064			47,064			1,282
Total originated and purchased performing loans		73,643		2,268,341			2,341,984			30,737
Gross loans		73,643		2,327,089			2,400,732			30,740
Less: deferred loan fees, net of costs		—		(1,640	)		(1,640	)		—
Total	$	73,643	$	2,325,449		$	2,399,092		$	30,740

The tables above exclude PPP loans of $12.0 million as of December 31, 2022. PPP loans are fully guaranteed by the U.S. government; therefore, the Company recorded no allowance for loan losses for these loans.

The following table presents information related to impaired loans held for investment by loan type as of date stated.


	December 31, 2022
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance
With no specific allowance recorded:
Commercial and industrial	$	1,268	$	1,289	$	—
Real estate – construction, commercial		521		521		—
Real estate – mortgage, commercial		4,508		4,504		—
Real estate – mortgage, residential		834		834		—
With an allowance recorded:
Commercial and industrial	$	66,386	$	66,386	$	11,605
Real estate – mortgage, commercial		126		126		1
Total	$	73,643	$	73,660	$	11,606

Impaired loans also include TDRs. As of December 31, 2022, there were 12 TDRs totaling $38.3 million.

The following table presents an analysis of the change in the allowance for loans losses by loan type as of the dates and for the periods stated.


	December 31,
(Dollars in thousands)	2022			2021
Allowance for loan losses, beginning of period	$	12,121		$	13,827
Charge-offs
Commercial and industrial		(4,779	)		(1,098	)
Real estate – construction		(162	)		(195	)
Real estate – mortgage		(1,824	)		(125	)
Consumer		(1,686	)		(1,123	)
Total charge-offs		(8,451	)		(2,541	)
Recoveries
Commercial and industrial		442			196
Real estate – construction		40			—
Real estate – mortgage		409			98
Consumer		492			424
Total recoveries		1,383			718
Net charge-offs		(7,068	)		(1,823	)
Provision for loan losses		25,687			117
Allowance for loan losses, end of period	$	30,740		$	12,121

The following table presents the amortized cost of loans held for investment by internal loan risk grade as of the date stated.


	December 31, 2022
(Dollars in thousands)	Grade 1 Prime		Grade 2 Desirable		Grade 3 Good		Grade 4 Acceptable		Grade 5 Pass/Watch		Grade 6 Special Mention		Grade 7 Substandard		Grade 8 Doubtful		Total
PCI loans:
Commercial and industrial	$	—	$	—	$	—	$	1,369	$	—	$	112	$	—	$	—	$	1,481
Real estate – construction, commercial		—		—		—		7		—		—		—		—		7
Real estate – mortgage, commercial		—		—		—		22,778		26,059		1,700		686		—		51,223
Real estate – mortgage residential		—		—		—		1,453		1,985		—		2,240		—		5,678
Consumer		—		—		—		—		353		—		6		—		359
Total PCI loans		—		—		—		25,607		28,397		1,812		2,932		—		58,748
Originated and purchased performing loans:
Commercial and industrial		318		885		192,393		291,204		31,902		2,834		69,032		—		588,568
Paycheck Protection Program		11,967		—		—		—		—		—		—		—		11,967
Real estate – construction, commercial		—		361		14,223		156,027		8,504		3,365		814		—		183,294
Real estate – construction, residential		—		—		3,110		72,327		1,162		—		—		—		76,599
Real estate – mortgage, commercial		—		2,330		187,648		561,554		54,352		2,048		5,834		—		813,766
Real estate – mortgage residential		—		7,311		233,697		365,511		11,858		—		7,717		—		626,094
Real estate – mortgage, farmland		549		—		1,315		4,609		126		—		—		—		6,599
Consumer		197		0		21,330		24,731		256		—		550		—		47,064
Total originated and purchased performing loans:		13,031		10,887		653,716		1,475,963		108,160		8,247		83,947		—		2,353,951
Gross loans	$	13,031	$	10,887	$	653,716	$	1,501,570	$	136,557	$	10,059	$	86,879	$	—	$	2,412,699
Less: deferred loan fees, net of costs																		(1,640	)
Total																	$	2,411,059

There were no loans classified as doubtful or loss as of December 31, 2022.