XML 22 R11.htm IDEA: XBRL DOCUMENT v3.25.2
LOANS
 6 Months Ended
Jun. 30, 2025
Receivables [Abstract]  
LOANS LOANS
The following table presents total loans outstanding by portfolio class, as of June 30, 2025 and December 31, 2024:
(dollars in thousands)June 30,
2025		December 31,
2024
Commercial:
Commercial$1,073,578 $818,496 
Commercial other470,808 541,324 
Commercial real estate:
Commercial real estate non-owner occupied1,480,685 1,628,961 
Commercial real estate owner occupied413,959 440,806 
Multi-family418,390 454,249 
Farmland70,327 67,648 
Construction and land development258,729 299,842 
Total commercial loans4,186,476 4,251,326 
Residential real estate:
Residential first lien299,725 315,775 
Other residential61,536 64,782 
Consumer:
Consumer90,213 96,202 
Consumer other50,190 48,099 
Lease financing347,155 391,390 
Total loans$5,035,295 $5,167,574 
Total loans include net deferred loan costs of $0.6 million and $1.4 million at June 30, 2025 and December 31, 2024, respectively, and unearned discounts of $49.0 million and $56.7 million within the lease financing portfolio at June 30, 2025 and December 31, 2024, respectively.
Classifications of Loan Portfolio
The Company monitors and assesses the credit risk of its loan portfolio using the classes set forth below. These classes also represent the segments by which the Company monitors the performance of its loan portfolio and estimates its allowance for credit losses on loans.
Commercial—Loans to varying types of businesses, including municipalities, school districts and nonprofit organizations, for the purpose of supporting working capital, operational needs and term financing of equipment. Repayment of such loans is generally provided through operating cash flows of the business. Commercial loans are predominately secured by equipment, inventory, accounts receivable, and other sources of repayment.
Commercial real estate—Loans secured by real estate occupied by the borrower for ongoing operations, including loans to borrowers engaged in agricultural production, and non-owner occupied real estate leased to one or more tenants, including commercial office, industrial, special purpose, retail and multi-family residential real estate loans.
Construction and land development—Secured loans for the construction of business and residential properties. Real estate construction loans often convert to a real estate commercial loan at the completion of the construction period. Secured development loans are made to borrowers for the purpose of infrastructure improvements to vacant land to create finished marketable residential and commercial lots/land. Most land development loans are originated with the intention that the loans will be paid through the sale of developed lots/land by the developers within twelve months of the completion date. Interest reserves may be established on real estate construction loans.
Residential real estate—Loans, secured by residential properties, that generally do not qualify for secondary market sale; however, the risk to return and/or overall relationship are considered acceptable to the Company. This category also includes loans whereby consumers utilize equity in their personal residence, generally through a second mortgage, as collateral to secure the loan.
Consumer—Loans to consumers primarily for the purpose of home improvements or acquiring automobiles, recreational vehicles and boats. Consumer loans consist of relatively small amounts that are spread across many individual borrowers.
Lease financing—Our leasing business provides financing leases to varying types of businesses, nationwide, for purchases of business equipment. The financing is secured by a first priority interest in the financed assets and generally requires monthly payments.
Commercial, commercial real estate, and construction and land development loans are collectively referred to as the Company’s commercial loan portfolio, while residential real estate, consumer loans and lease financing receivables are collectively referred to as the Company’s other loan portfolio.
We have extended loans to certain of our directors, executive officers, principal shareholders and their affiliates. These loans were made in the ordinary course of business upon substantially the same terms as comparable transactions with non-insiders, including collateralization and interest rates prevailing at the time. The new loans, other additions, repayments and other reductions for the three and six months ended June 30, 2025 and 2024, are summarized as follows:
Three Months Ended June 30,Six Months Ended June 30,
(dollars in thousands)2025202420252024
Beginning balance$42,028 $20,726 $40,410 $20,990 
New loans and other additions3,317 500 5,675 500 
Repayments and other reductions(859)(332)(1,599)(596)
Ending balance$44,486 $20,894 $44,486 $20,894 
The following table represents, by loan portfolio segment, a summary of changes in the allowance for credit losses on loans for the three and six months ended June 30, 2025 and 2024:
Commercial Loan PortfolioOther Loan Portfolio
(dollars in thousands)CommercialCommercial
real
estate		Construction
and land
development		Residential
real
estate		ConsumerLease
financing		Total
Changes in allowance for credit losses on loans for the three months ended June 30, 2025:
Balance, beginning of period$33,554 $39,069 $3,021 $7,874 $5,935 $15,723 $105,176 
Provision for credit losses on loans5,773 10,186 (1,181)(860)296 3,155 17,369 
Charge-offs(6,161)(22,453)— — (884)(3,886)(33,384)
Recoveries1,013 637 1,029 90 357 403 3,529 
Balance, end of period$34,179 $27,439 $2,869 $7,104 $5,704 $15,395 $92,690 
Changes in allowance for credit losses on loans for the six months ended June 30, 2025:
Balance, beginning of period$42,776 $36,837 $3,550 $8,002 $5,400 $14,639 $111,204 
Provision for credit losses on loans9,355 13,139 (1,711)(934)1,236 7,134 28,219 
Charge-offs(19,461)(23,176)— (72)(1,337)(7,334)(51,380)
Recoveries1,509 639 1,030 108 405 956 4,647 
Balance, end of period$34,179 $27,439 $2,869 $7,104 $5,704 $15,395 $92,690 
Changes in allowance for credit losses on loans for the three months ended June 30, 2024:
Balance, beginning of period$26,704 $21,367 $12,629 $5,655 $81,023 $13,466 $160,844 
Provision for credit losses on loans9,217 (1,253)336 (475)(1,185)1,842 8,482 
Charge-offs(3,838)(5)— — (10,338)(2,084)(16,265)
Recoveries153 2,088 1 13 63 64 2,382 
Balance, end of period$32,236 $22,197 $12,966 $5,193 $69,563 $13,288 $155,443 
Changes in allowance for credit losses on loans for the six months ended June 30, 2024:
Balance, beginning of period$29,672 $20,229 $4,163 $5,553 $86,762 $12,940 $159,319 
Provision for credit losses on loans10,993 424 8,802 (393)4,746 3,852 28,424 
Charge-offs(8,698)(696)— (35)(22,095)(3,749)(35,273)
Recoveries269 2,240 1 68 150 245 2,973 
Balance, end of period$32,236 $22,197 $12,966 $5,193 $69,563 $13,288 $155,443 
The Company utilizes a combination of models which measure probability of default and loss given default in determining expected future credit losses.
The probability of default is the risk that the borrower will be unable or unwilling to repay its debt in full or on time. The risk of default is derived by analyzing the obligor’s capacity to repay the debt in accordance with contractual terms. Probability of default is generally associated with financial characteristics such as inadequate cash flow to service debt, declining revenues or operating margins, high leverage, declining or marginal liquidity, and the inability to successfully implement a business plan. In addition to these quantifiable factors, the borrower’s willingness to repay also must be evaluated.
The probability of default is forecasted, for most commercial and retail loans, using a regression model that determines the likelihood of default within the twelve month time horizon. The regression model uses forward-looking economic forecasts including variables such as gross domestic product, housing price index, and real disposable income to predict default rates.
The loss given default component is the percentage of defaulted loan balance that is ultimately charged off. As a method for estimating the allowance, a form of migration analysis is used that combines the estimated probability of loans experiencing default events and the losses ultimately associated with the loans experiencing those defaults. Multiplying one by the other gives the Company its loss rate, which is then applied to the loan portfolio balance to determine expected future losses.
Within the model, the loss given default approach produces segmented loss given default estimates using a loss curve methodology, which is based on historical net losses from charge-off and recovery information. The main principle of a loss curve model is that the loss follows a steady timing schedule based on how long the defaulted loan has been on the books.
The Company’s expected loss estimate is anchored in historical credit loss experience, with an emphasis on all available portfolio data. The Company’s historical look-back period includes January 2012 through the current period on a monthly basis. When historical credit loss experience is not sufficient for a specific portfolio, the Company may supplement its own portfolio data with external models or data.
Historical data is evaluated in multiple components of the expected credit loss, including the reasonable and supportable forecast and the post-reversion period of each loan segment. The historical experience is used to infer probability of default and loss given default in the reasonable and supportable forecast period. In the post-reversion period, long-term average loss rates are segmented by loan pool.
Qualitative reserves reflect management’s overall estimate of the extent to which current expected credit losses on collectively evaluated loans will differ from historical loss experience. The analysis takes into consideration other analytics performed within the organization, such as enterprise and concentration management, along with other credit-related analytics as deemed appropriate. Management attempts to quantify qualitative reserves whenever possible.
The Company segments the loan portfolio into pools based on the following risk characteristics: financial asset type, collateral type, loan characteristics, credit characteristics, outstanding loan balances, contractual terms and prepayment assumptions, industry of borrower and concentrations, historical or expected credit loss patterns, and reasonable and supportable forecast periods. Within the probability of default segmentation, credit metrics are identified to further segment the financial assets. The Company utilizes risk ratings for the commercial portfolios and days past due for the consumer and the lease financing portfolios.
The Company has defined five transitioning risk states for each asset pool within the expected credit loss model. The below table illustrates the transition matrix:
Risk stateCommercial loans
risk rating		Consumer loans and
equipment finance loans and leases
days past due
10-5
0-14
26
15-29
37
30-59
48
60-89
Default9+ and nonaccrual
90+ and nonaccrual
Expected Credit Losses
In calculating expected credit losses, the Company individually evaluates loans on nonaccrual status, loans past due 90 days or more and still accruing interest, and loans that do not share similar risk characteristics with other loans in the pool.
The following table presents the amortized cost basis of individually evaluated loans on nonaccrual status as of June 30, 2025 and December 31, 2024:
June 30, 2025December 31, 2024
(dollars in thousands)Nonaccrual with allowanceNonaccrual with no allowanceTotal nonaccrualNonaccrual with allowanceNonaccrual with no allowanceTotal nonaccrual
Commercial:
Commercial$3,775 $3,850 $7,625 $2,678 $7,074 $9,752 
Commercial other6,606 1,240 7,846 3,439 — 3,439 
Commercial real estate:
Commercial real estate non-owner occupied11,948 6,092 18,040 9,173 24,187 33,360 
Commercial real estate owner occupied1,961 11,469 13,430 1,407 16,871 18,278 
Multi-family716 8,140 8,856 2,363 51,770 54,133 
Farmland1,556 — 1,556 1,148 — 1,148 
Construction and land development39 8,399 8,438 39 8,399 8,438 
Total commercial loans26,601 39,190 65,791 20,247 108,301 128,548 
Residential real estate:
Residential first lien3,391 469 3,860 2,501 491 2,992 
Other residential492 — 492 446 — 446 
Consumer:
Consumer62 — 62 20 — 20 
Lease financing6,299 — 6,299 8,132 — 8,132 
Total loans$36,845 $39,659 $76,504 $31,346 $108,792 $140,138 
    There was no interest income recognized on nonaccrual loans during the three and six months ended June 30, 2025 and 2024 while the loans were in nonaccrual status. Additional interest income that would have been recorded on nonaccrual loans had they been current in accordance with their original terms was $3.4 million and $6.7 million for the three and six months ended June 30, 2025 and $2.3 million and $3.6 million for the three and six months ended June 30, 2024, respectively.
Collateral Dependent Financial Assets
A collateral dependent financial asset is a loan that relies solely on the operation or sale of the collateral for repayment. In evaluating the overall risk associated with a loan, the Company considers character, overall financial condition and resources, and payment record of the borrower; the prospects for support from any financially responsible guarantors; and the nature and degree of protection provided by the cash flow and value of any underlying collateral. However, as other sources of repayment become inadequate over time, the significance of the collateral’s value increases and the loan may become collateral dependent.
The table below presents the amortized cost basis of individually evaluated, collateral dependent loans by loan class, for borrowers experiencing financial difficulty, as of June 30, 2025 and December 31, 2024:
Type of Collateral
(dollars in thousands)Real EstateBlanket LienEquipmentTotal
June 30, 2025
Commercial:
Commercial$— $3,850 $— $3,850 
Commercial other— 1,239 778 2,017 
Commercial real estate:
Non-owner occupied16,587 — — 16,587 
Owner occupied9,873 1,596 — 11,469 
Multi-family8,857 — — 8,857 
Construction and land development8,398 — — 8,398 
Lease financing— — 431 431 
Total collateral dependent loans$43,715 $6,685 $1,209 $51,609 
December 31, 2024
Commercial:
Commercial$— $7,074 $— $7,074 
Commercial other— — — — 
Commercial real estate:
Non-owner occupied24,188 — — 24,188 
Owner occupied9,284 7,587 — 16,871 
Multi-family54,133 — — 54,133 
Construction and land development8,399 — — 8,399 
Lease financing— — 465 465 
Total collateral dependent loans$96,004 $14,661 $465 $111,130 
The aging status of the recorded investment in loans by class as of June 30, 2025 was as follows:
Accruing loans
(dollars in thousands)30-59
days
past due		60-89 days past duePast due
90 days
or more		Total
past due		NonaccrualCurrentTotal
Commercial:
Commercial$1,548 $2,079 $— $3,627 $7,625 $1,062,326 $1,073,578 
Commercial other11,038 6,147 3,608 20,793 7,846 442,169 470,808 
Commercial real estate:
Commercial real estate non-owner occupied
3,005 — — 3,005 18,040 1,459,640 1,480,685 
Commercial real estate owner occupied177 90 — 267 13,430 400,262 413,959 
Multi-family— — — — 8,856 409,534 418,390 
Farmland— 47 — 47 1,556 68,724 70,327 
Construction and land development3,873 — — 3,873 8,438 246,418 258,729 
Total commercial loans19,641 8,363 3,608 31,612 65,791 4,089,073 4,186,476 
Residential real estate:
Residential first lien54 323 — 377 3,860 295,488 299,725 
Other residential90 35 — 125 492 60,919 61,536 
Consumer:
Consumer487 17 — 504 62 89,647 90,213 
Consumer other446 239 — 685 — 49,505 50,190 
Lease financing7,443 3,821 — 11,264 6,299 329,592 347,155 
Total loans$28,161 $12,798 $3,608 $44,567 $76,504 $4,914,224 $5,035,295 
The aging status of the recorded investment in loans by class as of December 31, 2024 was as follows:
Accruing loans
(dollars in thousands)30-59
days
past due		60-89
days
past due		Past due
90 days
or more		Total
past due		NonaccrualCurrentTotal
Commercial:
Commercial$4,562 $349 $— $4,911 $9,752 $803,833 $818,496 
Commercial other9,578 6,284 10,769 26,631 3,439 511,254 541,324 
Commercial real estate:
Commercial real estate non-owner occupied11,732 — — 11,732 33,360 1,583,869 1,628,961 
Commercial real estate owner occupied985 — — 985 18,278 421,543 440,806 
Multi-family— — — — 54,133 400,116 454,249 
Farmland48 — — 48 1,148 66,452 67,648 
Construction and land development— — — — 8,438 291,404 299,842 
Total commercial loans26,905 6,633 10,769 44,307 128,548 4,078,471 4,251,326 
Residential real estate:
Residential first lien21 650 — 671 2,992 312,112 315,775 
Other residential91 38 — 129 446 64,207 64,782 
Consumer:
Consumer314 40 — 354 20 95,828 96,202 
Consumer other345 211 — 556 — 47,543 48,099 
Lease financing4,679 3,754 — 8,433 8,132 374,825 391,390 
Total loans$32,355 $11,326 $10,769 $54,450 $140,138 $4,972,986 $5,167,574 
Loan Restructurings
The Company may offer various types of concessions when a borrower is experiencing financial difficulties that result in a direct change in the timing or amount of contractual cash flows including principal forgiveness, interest rate reductions, other-than-insignificant payment delays, term extensions, and combinations of the listed modifications. Commercial loans modified in a loan restructuring often involve temporary interest-only payments, term extensions, and converting revolving credit lines to term loans. Additional collateral, a co-borrower, or a guarantor is often requested.
Loans modified in a loan restructuring for the Company may have the financial effect of increasing the specific allowance associated with the loan. An allowance for loans that have been modified in a loan restructuring is measured based on the probability of default and loss given default model, the loan's observable market price, or the estimated fair value of the collateral, less any selling costs, if the loan is collateral dependent. Management exercises significant judgment in developing these estimates.
Commercial and consumer loans modified in a loan restructuring are closely monitored for delinquency as an early indicator of possible future default. If loans modified in a loan restructuring subsequently default, the Company evaluates the loan for possible further loss. The allowance may be increased, adjustments may be made in the allocation of the allowance, or partial charge-offs may be taken to further write-down the carrying value of the loan.
The following table represents, by loan portfolio segment, a summary of the loan restructuring for the three and six months ended June 30, 2025 and 2024:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(dollars in thousands)BalanceCount BalanceCountBalanceCountBalanceCount
Commercial:
Commercial$94 1 $— — $1,068 2$— — 
Commercial other561 2 1,161 8 861 41,90712
Commercial real estate:
Commercial real estate non-owner occupied— — 6,456 1 — — 6,456 1 
Commercial real estate owner occupied201 1 — — 201 1 — — 
Farmland267 1 — — 267 1 — — 
Construction and land development— — — — — — — — 
Total commercial loans1,123 5 7,617 9 2,397 8 8,363 13 
Residential real estate:
Residential first lien— — 66 1 156 4 66 1 
Other residential— — 81 2 — — 81 2 
Consumer:
Consumer— — 26 1 — — 26 1 
Lease financing— — 1,416 6 — — 2,132 9
Total loan restructurings$1,123 5 $9,206 19 $2,553 12 $10,668 26 
BalanceCountBalanceCountBalanceCountBalanceCount
Interest Rate Reduction$— — $480 2 $300 2$480 2 
Term Extension94 1 2,270 16 1,224 63,732 23
Payment Deferral— — 6,456 1 — — 6,456 1 
Interest Rate Reduction and Payment Deferral201 1 — — 201 1 — — 
Term Extension and Payment Deferral828 3 — — 828 3 — — 
Total loan restructurings$1,123 5 $9,206 19 $2,553 12 $10,668 26 
The Company has not committed to lend any additional amounts to the borrowers that have been granted a loan modification.
The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of our modification efforts. The following table presents the performance of such loans that have been modified in the last twelve months as of June 30, 2025:
(dollars in thousands)30-59
days
past due		60-89
days
past due		Past due
90 days
or more		Total
past due		CurrentTotal
Commercial:
Commercial$— $— $77 $77 $1,393 $1,470 
Commercial other— — 15 15 1,113 1,128 
Commercial real estate:
Commercial real estate non-owner occupied— — 4,456 4,456 21,422 25,878 
Commercial real estate owner occupied201 — — 201 6,038 6,239 
Multi-family— — — — — — 
Farmland— — — — 267 267 
Construction and land development— — — — 1,571 1,571 
Total commercial loans201 — 4,548 4,749 31,804 36,553 
Residential real estate:
Residential first lien133 10 — 143 339 482 
Consumer:
Consumer— — — — 15 15 
Lease financing— 668 139 807 188 995 
Total loan restructurings$334 $678 $4,687 $5,699 $32,346 $38,045 
Credit Quality Monitoring
The Company maintains loan policies and credit underwriting standards as part of the process of managing credit risk. These standards include making loans generally within the Company’s four geographic regions. In addition, our specialty finance division does nationwide bridge lending for FHA and HUD developments and originates loans for multifamily, assisted and senior living and multi-use properties. Our equipment leasing business provides financing to business customers across the country.
The Company has a loan approval process involving underwriting and individual and group loan approval authorities to consider credit quality and loss exposure at loan origination. The loans in the Company’s commercial loan portfolio are risk rated based on the grading system set forth below. All loan authority is based on the aggregate credit to a borrower and its related entities.
Loans in the commercial loan portfolio tend to be larger and more complex than those in the other loan portfolio, and therefore, are subject to more intensive monitoring. All loans in the commercial loan portfolio have an assigned relationship manager, and most borrowers provide periodic financial and operating information that allows the relationship managers to stay abreast of credit quality during the life of the loans. The risk ratings of loans in the commercial loan portfolio are reassessed at least annually, with loans below an acceptable risk rating reassessed more frequently and reviewed by various individuals within the Company at least quarterly.
The Company’s consumer loan portfolio is primarily comprised of both secured and unsecured loans that are relatively small and are evaluated at origination on a centralized basis against standardized underwriting criteria. The ongoing measurement of credit quality of the consumer loan portfolio is largely done on an exception basis. If payments are made on schedule, as agreed, then no further monitoring is performed. However, if delinquency occurs, the delinquent loans are turned over to the Company’s Consumer Collections Group for resolution. Credit quality for the entire consumer loan portfolio is measured by the periodic delinquency rate, nonaccrual amounts and actual losses incurred.
The Company maintains a centralized independent loan review function that monitors the approval process and ongoing asset quality of the loan portfolio, including the accuracy of loan grades. The Company also maintains an independent appraisal review function that participates in the review of all appraisals obtained by the Company.
Credit Quality Indicators
The Company uses a ten grade risk rating system to monitor the ongoing credit quality of its commercial loan portfolio. These loan grades rank the credit quality of a borrower by measuring liquidity, debt capacity, and coverage and payment behavior as shown in the borrower’s financial statements. The risk grades also measure the quality of the borrower’s management and the repayment support offered by any guarantors.
The Company considers all loans with Risk Grades 1 - 6 as acceptable credit risks and structures and manages such relationships accordingly. Periodic financial and operating data combined with regular loan officer interactions are deemed adequate to monitor borrower performance. Loans with Risk Grades of 7 are considered "watch credits" categorized as special mention and the frequency of loan officer contact and receipt of financial data is increased to stay abreast of borrower performance. Loans with Risk Grades of 8 - 10 are considered problematic and require special care. Risk Grade 8 is categorized as substandard, 9 as substandard - nonaccrual and 10 as doubtful. Further, loans with Risk Grades of 7 - 10 are managed regularly through a number of processes, procedures and committees, including oversight by a loan administration committee comprised of executive and senior management of the Company, which includes highly structured reporting of financial and operating data, intensive loan officer intervention and strategies to exit, as well as potential management by the Company's Special Assets Group. Loans not graded in the commercial loan portfolio are monitored by aging status and payment activity.
As discussed previously in Loan Restructurings, the Company does provide various types of concessions when a borrower is experiencing financial difficulties that result in a direct change in the timing or amount of contractual cash flows. Modified loans with terms at least as favorable to the lender as the terms for other customers with similar collection risks and with terms that are more than minor compared to the original terms are treated as a new loan to the borrower.
The following tables present the recorded investment of the commercial loan portfolio by risk category as of June 30, 2025 and December 31, 2024:
June 30, 2025
Term Loans
Amortized Cost Basis by Origination Year
(dollars in thousands)20252024202320222021PriorRevolving loansTotal
CommercialCommercialAcceptable credit quality$409,916 $96,319 $91,564 $21,005 $50,201 $53,582 $333,654 $1,056,241 
Special mention— — — — — 40 163 203 
Substandard— 44 2,575 264 347 1,461 4,818 9,509 
Substandard – nonaccrual— 84 876 4,251 508 647 1,259 7,625 
Doubtful— — — — — — — — 
Not graded— — — — — — — — 
Subtotal409,916 96,447 95,015 25,520 51,056 55,730 339,894 1,073,578 
Commercial otherAcceptable credit quality39,789 86,067 76,141 102,106 40,686 22,686 89,412 456,887 
Special mention— 1 1,948 1,200 1,689 196 — 5,034 
Substandard— — 29 — — 64 895 988 
Substandard – nonaccrual— 231 2,193 2,203 743 659 1,817 7,846 
Doubtful— — — — — — — — 
Not graded— — — — 53 — — 53 
Subtotal39,789 86,299 80,311 105,509 43,171 23,605 92,124 470,808 
Commercial real estateNon-owner occupiedAcceptable credit quality160,880 298,946 147,674 389,040 217,961 170,612 11,644 1,396,757 
Special mention110 15,649 3,199 9,851 174 169 — 29,152 
Substandard— 62 — — 4,063 32,611 — 36,736 
Substandard – nonaccrual— 4,524 — 61 — 13,455 — 18,040 
Doubtful— — — — — — — — 
Not graded— — — — — — — — 
Subtotal160,990 319,181 150,873 398,952 222,198 216,847 11,644 1,480,685 
Owner occupiedAcceptable credit quality47,793 59,960 47,374 92,493 70,201 77,704 626 396,151 
Special mention— 845 — — — 159 — 1,004 
Substandard— 471 — — 30 2,873 — 3,374 
Substandard – nonaccrual— 308 — 11,365 264 1,189 304 13,430 
Doubtful— — — — — — — — 
Not graded— — — — — — — — 
Subtotal47,793 61,584 47,374 103,858 70,495 81,925 930 413,959 
Multi-familyAcceptable credit quality21,773 34,612 14,459 199,889 74,796 18,072 323 363,924 
Special mention— — 7,628 32,752 — — — 40,380 
Substandard— — — — 5,191 39 — 5,230 
Substandard – nonaccrual— 8,140 — — — 716 — 8,856 
Doubtful— — — — — — — — 
Not graded— — — — — — — — 
Subtotal21,773 42,752 22,087 232,641 79,987 18,827 323 418,390 
FarmlandAcceptable credit quality15,734 2,069 8,055 3,785 8,093 26,753 1,920 66,409 
Special mention— — — — — — — — 
Substandard600 — 1,210 — 13 539 — 2,362 
Substandard – nonaccrual— — — 107 267 1,134 48 1,556 
Doubtful— — — — — — — — 
Not graded— — — — — — — — 
Subtotal16,334 2,069 9,265 3,892 8,373 28,426 1,968 70,327 
Construction and land developmentAcceptable credit quality57,907 105,419 25,359 26,846 12,859 778 14,124 243,292 
Special mention— 1,571 — — — — — 1,571 
Substandard— — — — — — — — 
Substandard – nonaccrual— — — — 8,399 39 — 8,438 
Doubtful— — — — — — — — 
Not graded1,706 2,987 398 316 — 21 — 5,428 
Subtotal59,613 109,977 25,757 27,162 21,258 838 14,124 258,729 
TotalAcceptable credit quality753,792 683,392 410,626 835,164 474,797 370,187 451,703 3,979,661 
Special mention110 18,066 12,775 43,803 1,863 564 163 77,344 
Substandard600 577 3,814 264 9,644 37,587 5,713 58,199 
Substandard – nonaccrual— 13,287 3,069 17,987 10,181 17,839 3,428 65,791 
Doubtful— — — — — — — — 
Not graded1,706 2,987 398 316 53 21 — 5,481 
Total commercial loans$756,208 $718,309 $430,682 $897,534 $496,538 $426,198 $461,007 $4,186,476 
December 31, 2024
Term Loans
Amortized Cost Basis by Origination Year
(dollars in thousands)20242023202220212020PriorRevolving loansTotal
CommercialCommercialAcceptable credit quality$103,345 $100,478 $66,135 $59,613 $28,661 $39,895 $343,577 $741,704 
Special mention54,838 — — — — 60 277 55,175 
Substandard464 2,964 626 1,311 196 1,239 5,065 11,865 
Substandard – nonaccrual— 635 4,601 514 12 3,202 788 9,752 
Doubtful— — — — — — — — 
Not graded— — — — — — — — 
Subtotal158,647 104,077 71,362 61,438 28,869 44,396 349,707 818,496 
Commercial otherAcceptable credit quality101,877 94,515 133,745 59,701 25,688 14,016 103,794 533,336 
Special mention1 2,132 1,100 964 197 94 — 4,488 
Substandard— 31 — — — — 30 61 
Substandard – nonaccrual119 646 1,406 682 93 394 99 3,439 
Doubtful— — — — — — — — 
Not graded— — — — — — — — 
Subtotal101,997 97,324 136,251 61,347 25,978 14,504 103,923 541,324 
Commercial real estateNon-owner occupiedAcceptable credit quality404,475 179,499 460,447 261,886 79,830 130,160 6,729 1,523,026 
Special mention12,392 4,079 — 178 3,988 274 — 20,911 
Substandard62 2,061 8,149 4,190 4,463 32,739 — 51,664 
Substandard – nonaccrual80 7,737 7,861 4,509 — 13,173 — 33,360 
Doubtful— — — — — — — — 
Not graded— — — — — — — — 
Subtotal417,009 193,376 476,457 270,763 88,281 176,346 6,729 1,628,961 
Owner occupiedAcceptable credit quality61,613 43,344 95,334 101,717 46,914 62,723 629 412,274 
Special mention849 — — — — 214 — 1,063 
Substandard469 5,469 381 — — 2,872 — 9,191 
Substandard – nonaccrual317 — 16,971 264 1 421 304 18,278 
Doubtful— — — — — — — — 
Not graded— — — — — — — — 
Subtotal63,248 48,813 112,686 101,981 46,915 66,230 933 440,806 
Multi-familyAcceptable credit quality49,292 14,682 224,849 60,428 27,417 9,519 978 387,165 
Special mention— 7,650 — — — — — 7,650 
Substandard— — — 5,258 — 43 — 5,301 
Substandard – nonaccrual27,354 8,890 — 899 — 16,990 — 54,133 
Doubtful— — — — — — — — 
Not graded— — — — — — — — 
Subtotal76,646 31,222 224,849 66,585 27,417 26,552 978 454,249 
FarmlandAcceptable credit quality4,157 9,540 4,557 16,794 10,046 19,588 1,690 66,372 
Special mention— — — — — — — — 
Substandard— — — 13 — 115 — 128 
Substandard – nonaccrual— — — — — 1,100 48 1,148 
Doubtful— — — — — — — — 
Not graded— — — — — — — — 
Subtotal4,157 9,540 4,557 16,807 10,046 20,803 1,738 67,648 
Construction and land developmentAcceptable credit quality71,889 27,121 106,277 25,780 — 1,153 38,829 271,049 
Special mention11,409 — — — — — — 11,409 
Substandard5,848 — — — — — — 5,848 
Substandard – nonaccrual— — — 8,399 — 39 — 8,438 
Doubtful— — — — — — — — 
Not graded2,232 470 374 — — 22 — 3,098 
Subtotal91,378 27,591 106,651 34,179 — 1,214 38,829 299,842 
TotalAcceptable credit quality796,648 469,179 1,091,344 585,919 218,556 277,054 496,226 3,934,926 
Special mention79,489 13,861 1,100 1,142 4,185 642 277 100,696 
Substandard6,843 10,525 9,156 10,772 4,659 37,008 5,095 84,058 
Substandard – nonaccrual27,870 17,908 30,839 15,267 106 35,319 1,239 128,548 
Doubtful— — — — — — — — 
Not graded2,232 470 374 — — 22 — 3,098 
Total commercial loans$913,082 $511,943 $1,132,813 $613,100 $227,506 $350,045 $502,837 $4,251,326 
The following table presents the gross charge-offs by class of loan and year of origination on the commercial loan portfolio for the three and six months ended June 30, 2025 and 2024:
Term Loans by Origination Year
(dollars in thousands)20252024202320222021PriorRevolving LoansTotal
For the three months ended June 30, 2025
CommercialCommercial$— $— $— $— $— $88 $— $88 
Commercial Other— 14 243 915 179 39 4,683 6,073 
Commercial Real EstateNon-owner occupied— — — 7,782 — 5,743 — 13,525 
Commercial Real EstateOwner occupied— — — 5,847 — — — 5,847 
Multi-family— — — 2,354 — 727 — 3,081 
Construction and land development
— — — — — — — — 
Total gross commercial charge-offs$— $14 $243 $16,898 $179 $6,597 $4,683 $28,614 
Term Loans by Origination Year
20252024202320222021PriorRevolving LoansTotal
For the six months ended June 30, 2025
CommercialCommercial$— $— $— $— $— $152 $— $152 
Commercial Other— 56 1,035 1,930 406 117 15,765 19,309 
Commercial Real EstateNon-owner occupied— — — 7,782 — 5,743 — 13,525 
Owner occupied— — — 5,847 — — — 5,847 
Multi-family— — — 2,354 — 1,450 — 3,804 
Construction and land development
— — — — — — — — 
Total gross commercial charge-offs$— $56 $1,035 $17,913 $406 $7,462 $15,765 $42,637 
Term Loans by Origination Year
(dollars in thousands)20242023202220212020PriorRevolving LoansTotal
For the three months ended June 30, 2024
CommercialCommercial$— $475 $— $750 $— $14 $— $1,239 
Commercial Other— 579 1,807 127 3 83 — 2,599 
Commercial Real EstateNon-owner occupied— — — — — 5 — 5 
Commercial Real EstateOwner occupied— — — — — — — — 
Multi-family— — — — — — — — 
Construction and land development
— — — — — — — — 
Total gross commercial charge-offs$— $1,054 $1,807 $877 $3 $102 $— $3,843 
Term Loans by Origination Year
20242023202220212020PriorRevolving LoansTotal
For the six months ended June 30, 2024
CommercialCommercial$— $475 $— $750 $10 $15 $102 $1,352 
Commercial Other— 1,445 5,331 421 23 126 — 7,346 
Commercial Real EstateNon-owner occupied— — — — 5 — 5 
Owner occupied— — — — 138 553 — 691 
Multi-family— — — — — — — — 
Construction and land development
— — — — — — — — 
Total gross commercial charge-offs$— $1,920 $5,331 $1,171 $171 $699 $102 $9,394 
The Company evaluates the credit quality of its other loan portfolios, which includes residential real estate, consumer and leases, based primarily on the aging status of the loan and payment activity. Accordingly, loans on nonaccrual status and loans past due 90 days or more and still accruing interest are considered to be nonperforming for purposes of credit quality evaluation. The following tables present the recorded investment of our other loan portfolio based on the credit risk profile of loans that are performing and loans that are nonperforming as of June 30, 2025 and December 31, 2024:
June 30, 2025
Term Loans
Amortized Cost Basis by Origination Year
(dollars in thousands)20252024202320222021PriorRevolving LoansTotal
Residential real estateResidential first lienPerforming$2,769 $29,869 $40,255 $65,857 $29,975 $127,140 $— $295,865 
Nonperforming— — 318 196 302 3,044 — 3,860 
Subtotal2,769 29,869 40,573 66,053 30,277 130,184 — 299,725 
Other residentialPerforming842 2,248 2,071 729 227 1,786 53,141 61,044 
Nonperforming— — — — — 148 344 492 
Subtotal842 2,248 2,071 729 227 1,934 53,485 61,536 
ConsumerConsumerPerforming8,891 18,787 17,436 13,792 21,053 9,142 1,050 90,151 
Nonperforming— — 33 3 — 23 3 62 
Subtotal8,891 18,787 17,469 13,795 21,053 9,165 1,053 90,213 
Consumer otherPerforming— — 357 33,270 7,218 9,345 — 50,190 
Nonperforming— — — — — — — — 
Subtotal— — 357 33,270 7,218 9,345 — 50,190 
Leases financingPerforming40,212 79,294 82,512 81,333 32,440 25,065 — 340,856 
Nonperforming— 689 1,252 3,386 685 287 — 6,299 
Subtotal40,212 79,983 83,764 84,719 33,125 25,352 — 347,155 
TotalPerforming52,714 130,198 142,631 194,981 90,913 172,478 54,191 838,106 
Nonperforming— 689 1,603 3,585 987 3,502 347 10,713 
Total other loans$52,714 $130,887 $144,234 $198,566 $91,900 $175,980 $54,538 $848,819 
December 31, 2024
Term Loans
Amortized Cost Basis by Origination Year
(dollars in thousands)20242023202220212020PriorRevolving loansTotal
Residential real estateResidential first lienPerforming$29,754 $41,263 $69,334 $35,539 $27,282 $109,572 $39 $312,783 
Nonperforming— 137 196 312 139 2,208 — 2,992 
Subtotal29,754 41,400 69,530 35,851 27,421 111,780 39 315,775 
Other residentialPerforming2,620 2,218 874 257 308 1,822 56,237 64,336 
Nonperforming— — — — — 148 298 446 
Subtotal2,620 2,218 874 257 308 1,970 56,535 64,782 
ConsumerConsumerPerforming22,405 21,182 16,636 23,632 3,542 7,874 911 96,182 
Nonperforming— — 5 — — 12 3 20 
Subtotal22,405 21,182 16,641 23,632 3,542 7,886 914 96,202 
Consumer otherPerforming— 536 29,939 7,510 3,677 6,437 — 48,099 
Nonperforming— — — — — — — — 
Subtotal— 536 29,939 7,510 3,677 6,437 — 48,099 
Leases financingPerforming94,432 96,171 106,809 44,213 24,774 16,859 — 383,258 
Nonperforming77 3,720 3,017 992 239 87 — 8,132 
Subtotal94,509 99,891 109,826 45,205 25,013 16,946 — 391,390 
Total
Performing149,211 161,370 223,592 111,151 59,583 142,564 57,187 904,658 
Nonperforming77 3,857 3,218 1,304 378 2,455 301 11,590 
Total other loans$149,288 $165,227 $226,810 $112,455 $59,961 $145,019 $57,488 $916,248 

The following table presents the gross charge-offs by class of loan and year of origination on the other loan portfolio for the three and six months ended June 30, 2025 and 2024:
Term Loans by Origination Year
(dollars in thousands)20252024202320222021PriorRevolving LoansTotal
For the three months ended June 30, 2025
Residential real estateResidential first lien$— $— $— $— $— $— $— $— 
Other residential— — — — — — — — 
ConsumerConsumer— 29 7 — — — 9 45 
Consumer other22 27 33 269 124 364 — 839 
Lease financing— 324 1,712 1,187 184 479 — 3,886 
Total gross other charge-offs$22 $380 $1,752 $1,456 $308 $843 $9 $4,770 
Term Loans by Origination Year
20252024202320222021PriorRevolving LoansTotal
For the six months ended June 30, 2025
Residential real estateResidential first lien$— $— $— $— $— $27 $— $27 
Other residential— — — 25 — 1 19 45 
ConsumerConsumer— 30 12 2 — 1 13 58 
Consumer other26 79 50 284 129 711 — 1,279 
Lease financing— 467 3,418 2,418 393 638 — 7,334 
Total gross other charge-offs$26 $576 $3,480 $2,729 $522 $1,378 $32 $8,743 
Term Loans
(dollars in thousands)20242023202220212020PriorRevolving LoansTotal
For the three months ended June 30, 2024
Residential real estateResidential first lien$— $— $— $— $— $— $— $— 
Other residential— — — — — — — — 
ConsumerConsumer— 22 — 5 10 — 1 38 
Consumer other1 2,377 4,981 1,466 552 923 — 10,300 
Lease financing— 946 900 223 15 — — 2,084 
Total gross other charge-offs$1 $3,345 $5,881 $1,694 $577 $923 $1 $12,422 
Term Loans
20242023202220212020PriorRevolving LoansTotal
For the six months ended June 30, 2024
Residential real estateResidential first lien$— $— $11 $— $— $— $— $11 
Other residential— — 16 — — — 8 24 
ConsumerConsumer— 22 — 5 16 27 1 71 
Consumer other1 5,034 10,707 2,841 1,414 2,027 — 22,024 
Lease financing— 1,069 2,271 337 52 20 — 3,749 
Total gross other charge-offs$1 $6,125 $13,005 $3,183 $1,482 $2,074 $9 $25,879