v3.25.2
LOANS
 12 Months Ended
Dec. 31, 2024
Receivables [Abstract]  
LOANS LOANS
The following table presents total loans outstanding by portfolio class, as of December 31, 2024 and December 31, 2023:
(dollars in thousands)December 31,
2024
December 31, 2023
(Restated)
Commercial:
Commercial$818,496 $825,938 
Commercial other541,324 679,516 
Commercial real estate:
Commercial real estate non-owner occupied1,628,961 1,622,668 
Commercial real estate owner occupied440,806 436,857 
Multi-family454,249 279,904 
Farmland67,648 67,416 
Construction and land development299,842 452,593 
Total commercial loans4,251,326 4,364,892 
Residential real estate:
Residential first lien315,775 317,388 
Other residential64,782 63,195 
Consumer:
Consumer96,202 107,743 
Consumer other48,099 777,024 
Lease financing391,390 473,350 
Total loans$5,167,574 $6,103,592 
Total loans include net deferred loan costs of $1.4 million and $3.8 million at December 31, 2024 and December 31, 2023, respectively, and unearned discounts of $56.7 million and $66.4 million within the lease financing portfolio at December 31, 2024 and December 31, 2023, 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 years ended December 31, 2024 and 2023, are summarized as follows:
Years Ended December 31,
(dollars in thousands)20242023
Beginning balance$20,990 $19,776 
New loans and other additions22,325 2,368 
Repayments and other reductions(2,905)(1,154)
Ending balance$40,410 $20,990 
The following table represents, by loan portfolio segment, a summary of changes in the allowance for credit losses on loans for the years ended December 31, 2024, 2023 and 2022:
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 year ended December 31, 2024:
Balance, beginning of period$29,672 $20,229 $4,163 $5,553 $86,762 $12,940 $159,319 
Provision for credit losses on loans42,610 24,366 17,375 3,028 16,415 15,468 119,262 
Charge-offs(30,453)(9,998)(17,991)(817)(98,051)(14,323)(171,633)
Recoveries947 2,240 3 238 274 554 4,256 
Balance, end of period$42,776 $36,837 $3,550 $8,002 $5,400 $14,639 $111,204 
Changes in allowance for credit losses on loans for the year ended December 31, 2023 (restated):
Balance, beginning of period$26,035 $29,290 $2,435 $4,301 $60,041 $6,787 $128,889 
Provision for credit losses on loans15,555 (8,067)3,296 1,385 59,582 10,809 82,560 
Charge-offs(13,703)(5,000)(1,601)(271)(33,149)(5,026)(58,750)
Recoveries1,785 4,006 33 138 288 370 6,620 
Balance, end of period$29,672 $20,229 $4,163 $5,553 $86,762 $12,940 $159,319 
Changes in allowance for credit losses on loans for the year ended December 31, 2022 (restated):
Balance, beginning of period$24,768 $22,993 $972 $2,695 $30,547 $7,469 $89,444 
Provision for credit losses on loans9,307 10,396 1,439 1,698 53,128 (533)75,435 
Charge-offs(8,441)(4,106)(6)(344)(24,091)(1,297)(38,285)
Recoveries401 7 30 252 457 1,148 2,295 
Balance, end of period$26,035 $29,290 $2,435 $4,301 $60,041 $6,787 $128,889 
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 with a balance greater than $500,000, 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 December 31, 2024 and December 31, 2023:
December 31, 2024December 31, 2023
(dollars in thousands)Nonaccrual with allowanceNonaccrual with no allowanceTotal nonaccrualNonaccrual with allowanceNonaccrual with no allowanceTotal nonaccrual
Commercial:
Commercial$2,678 $7,074 $9,752 $3,560 $— $3,560 
Commercial other3,439 — 3,439 4,941 — 4,941 
Commercial real estate:
Commercial real estate non-owner occupied9,173 24,187 33,360 1,614 14,098 15,712 
Commercial real estate owner occupied1,407 16,871 18,278 4,276 6,500 10,776 
Multi-family2,363 51,770 54,133 240 6,015 6,255 
Farmland1,148 — 1,148 1,148 — 1,148 
Construction and land development39 8,399 8,438 39 — 39 
Total commercial loans20,247 108,301 128,548 15,818 26,613 42,431 
Residential real estate:
Residential first lien2,501 491 2,992 2,583 490 3,073 
Other residential446 — 446 635 — 635 
Consumer:
Consumer20 — 20 134 — 134 
Lease financing8,132 — 8,132 9,097 36 9,133 
Total loans$31,346 $108,792 $140,138 $28,267 $27,139 $55,406 
    There was no interest income recognized on nonaccrual loans during the years ended December 31, 2024, 2023 and 2022 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 $9.6 million, $3.4 million and $2.8 million for the years ended December 31, 2024, 2023 and 2022, respectively.
Collateral Dependent Financial Assets
A collateral dependent financial asset is a loan that relies solely on the operation or sale of the collateral for repayment. In evaluating the overall risk associated with a loan, the Company considers character, overall financial condition and resources, and payment record of the borrower; the prospects for support from any financially responsible guarantors; and the nature and degree of protection provided by the cash flow and value of any underlying collateral. However, as other sources of repayment become inadequate over time, the significance of the collateral’s value increases and the loan may become collateral dependent.
The table below presents the amortized cost basis of individually evaluated, collateral dependent loans by loan class, for borrowers experiencing financial difficulty, as of December 31, 2024 and December 31, 2023:
Type of Collateral
(dollars in thousands)Real EstateBlanket LienEquipmentTotal
December 31, 2024
Commercial:
Commercial$— $7,074 $— $7,074 
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 
Residential real estate
Residential first lien— — — — 
Other residential— — — — 
Lease financing— — 465 465 
Total collateral dependent loans$96,004 $14,661 $465 $111,130 
December 31, 2023
Commercial:
Commercial$— $— $1,972 $1,972 
Commercial other— — 1,232 1,232 
Commercial real estate:
Non-owner occupied14,147 — — 14,147 
Owner occupied9,275 — — 9,275 
Multi-family5,143 — — 5,143 
Total collateral dependent loans$28,565 $— $3,204 $31,769 
The aging status of the recorded investment in loans by portfolio as of December 31, 2024 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$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 occupied
11,732 — — 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 
The aging status of the recorded investment in loans by portfolio as of December 31, 2023 (restated) 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$9,340 $504 $— $9,844 $3,560 $812,534 $825,938 
Commercial other11,686 6,109 784 18,579 4,941 655,996 679,516 
Commercial real estate:
Commercial real estate non-owner occupied384 — — 384 15,712 1,606,572 1,622,668 
Commercial real estate owner occupied— — — — 10,776 426,081 436,857 
Multi-family14,506 8,140 — 22,646 6,255 251,003 279,904 
Farmland— 120 — 120 1,148 66,148 67,416 
Construction and land development211 10,593 — 10,804 39 441,750 452,593 
Total commercial loans36,127 25,466 784 62,377 42,431 4,260,084 4,364,892 
Residential real estate:
Residential first lien69 299 161 529 3,073 313,786 317,388 
Other residential100 50 — 150 635 62,410 63,195 
Consumer:
Consumer62 20 — 82 134 107,527 107,743 
Consumer other6,695 4,442 — 11,137 — 765,887 777,024 
Lease financing7,622 1,826 — 9,448 9,133 454,769 473,350 
Total loans$50,675 $32,103 $945 $83,723 $55,406 $5,964,463 $6,103,592 
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 years ended December 31, 2024 and 2023:
Years Ended December 31,
20242023
(dollars in thousands)BalanceCountBalanceCount
Commercial:
Commercial$61,729 8 $40 1 
Commercial other1,790 17 1,447 6 
Commercial real estate:
Commercial real estate non-owner occupied31,550 5 — — 
Commercial real estate owner occupied6,131 3 — — 
Multi-family27,354 2 — — 
Construction and land development17,033 3 — — 
Total commercial loans145,587 38 1,487 7 
Residential real estate:
Residential first lien402 3 57 2 
Other residential82 2 — — 
Consumer:
Consumer44 3 22 1 
Lease financing3,301 18 763 2 
Total loan restructurings$149,416 64 $2,329 12 
BalanceCountBalanceCount
Interest Rate Reduction$10,037 2 $— — 
Term Extension75,365 33 1,191 8 
Payment Deferral8,153 15 — — 
Forgiveness of Principal or Interest213 1 — — 
Interest Rate Reduction and Term Extension49,051 5 1,138 4 
Interest Rate Reduction and Payment Deferral312 2 — — 
Interest Rate Reduction and Principal Forgiveness77 1 — — 
Term Extension and Payment Deferral6,208 5 — — 
Total loan restructurings$149,416 64 $2,329 12 
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 for the year ended December 31, 2024:
(dollars in thousands)30-59
days
past due		60-89
days
past due		Total
past due		NonaccrualCurrentTotal
Commercial:
Commercial$2,722 $— $2,722 $— $59,007 $61,729 
Commercial other116 36 152 688 950 1,790 
Commercial real estate:
Commercial real estate non-owner occupied— — — 6,301 25,249 31,550 
Commercial real estate owner occupied— — — — 6,131 6,131 
Multi-family— — — 27,354 — 27,354 
Construction and land development— — — — 17,033 17,033 
Total commercial loans2,838 36 2,874 34,343 108,370 145,587 
Residential real estate:
Residential first lien— — — 337 65 402 
Other residential— — — 45 37 82 
Consumer:
Consumer— — — — 44 44 
Lease financing— — — 950 2,351 3,301 
Total loan restructurings$2,838 $36 $2,874 $35,675 $110,867 $149,416 
    The following table presents the performance of such loans that have been modified in the last twelve months for the year ended December 31, 2023:
(dollars in thousands)30-59
days
past due		60-89
days
past due		Total
past due		NonaccrualCurrentTotal
Commercial:
Commercial$— $— $— $— $40 $40 
Commercial other395 — 395 298 754 1,447 
Total commercial loans395 — 395 298 794 1,487 
Residential real estate:
Residential first lien— — — 57 — 57 
Consumer:
Consumer— — — — 22 22 
Lease financing— — — — 763 763 
Total loan restructurings$395 $— $395 $355 $1,579 $2,329 
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 at origination based on the grading system set forth below. All loan authority is based on the aggregate credit to a borrower and its related entities.
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.
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 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 December 31, 2024 and December 31, 2023:
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 
December 31, 2023
(Restated)
Term Loans
Amortized Cost Basis by Origination Year
(dollars in thousands)20232022202120202019PriorRevolving loansTotal
CommercialCommercialAcceptable credit quality$157,498 $96,295 $71,366 $36,680 $14,688 $42,827 $369,297 $788,651 
Special mention3,015 450 4 — 181 43 983 4,676 
Substandard4,485 13,651 420 342 253 4,961 4,940 29,052 
Substandard – nonaccrual1,238 — 1,321 25 79 360 536 3,559 
Doubtful— — — — — — — — 
Not graded— — — — — — — — 
Subtotal166,236 110,396 73,111 37,047 15,201 48,191 375,756 825,938 
Commercial otherAcceptable credit quality139,057 195,726 111,273 68,224 35,720 29,839 90,928 670,767 
Special mention— 532 399 114 107 4 1,682 2,838 
Substandard37 220 — — — — 639 896 
Substandard – nonaccrual1,819 1,918 449 184 361 94 116 4,941 
Doubtful— — — — — — — — 
Not graded74 — — — — — — 74 
Subtotal140,987 198,396 112,121 68,522 36,188 29,937 93,365 679,516 
Commercial real estateNon-owner occupiedAcceptable credit quality237,215 653,057 309,013 110,743 82,563 124,430 6,328 1,523,349 
Special mention4,480 — 181 457 — 274 — 5,392 
Substandard35,811 1,658 — — 17,835 22,911 — 78,215 
Substandard – nonaccrual5,573 — 154 999 7,597 1,389 — 15,712 
Doubtful— — — — — — — — 
Not graded— — — — — — — — 
Subtotal283,079 654,715 309,348 112,199 107,995 149,004 6,328 1,622,668 
Owner occupiedAcceptable credit quality32,972 100,893 113,264 48,415 23,671 77,854 1,803 398,872 
Special mention5,750 — 129 — 149 177 8 6,213 
Substandard— 7,716 265 — 705 12,310 — 20,996 
Substandard – nonaccrual126 9,431 28 171 27 689 304 10,776 
Doubtful— — — — — — — — 
Not graded— — — — — — — — 
Subtotal38,848 118,040 113,686 48,586 24,552 91,030 2,115 436,857 
Multi-familyAcceptable credit quality4,483 170,519 25,835 28,137 10,185 11,538 254 250,951 
Special mention— — — — — — — — 
Substandard8,140 — — — — 14,558 — 22,698 
Substandard – nonaccrual1,700 — 899 — 104 3,552 — 6,255 
Doubtful— — — — — — — — 
Not graded— — — — — — — — 
Subtotal14,323 170,519 26,734 28,137 10,289 29,648 254 279,904 
FarmlandAcceptable credit quality10,104 4,735 13,405 12,255 3,723 18,636 1,439 64,297 
Special mention— — 1,451 — — 96 — 1,547 
Substandard— — 133 — 22 269 — 424 
Substandard – nonaccrual— — — — — 1,100 48 1,148 
Doubtful— — — — — — — — 
Not graded— — — — — — — — 
Subtotal10,104 4,735 14,989 12,255 3,745 20,101 1,487 67,416 
Construction and land developmentAcceptable credit quality65,538 233,660 88,047 — 677 916 29,385 418,223 
Special mention— — — — — 40 — 40 
Substandard— — 16,594 — — — 15,349 31,943 
Substandard – nonaccrual— — — — — 39 — 39 
Doubtful— — — — — — — — 
Not graded1,535 432 356 — — 25 — 2,348 
Subtotal67,073 234,092 104,997 — 677 1,020 44,734 452,593 
TotalAcceptable credit quality646,867 1,454,885 732,203 304,454 171,227 306,040 499,434 4,115,110 
Special mention13,245 982 2,164 571 437 634 2,673 20,706 
Substandard48,473 23,245 17,412 342 18,815 55,009 20,928 184,224 
Substandard – nonaccrual10,456 11,349 2,851 1,379 8,168 7,223 1,004 42,430 
Doubtful— — — — — — — — 
Not graded1,609 432 356 — — 25 — 2,422 
Total commercial loans$720,650 $1,490,893 $754,986 $306,746 $198,647 $368,931 $524,039 $4,364,892 
The following table presents the gross charge-offs by class of loan and year of origination on the commercial loan portfolio for the years ended December 31, 2024 and 2023:
Term Loans by Origination Year
(dollars in thousands)20242023202220212020PriorRevolving LoansTotal
For the year ended December 31, 2024
CommercialCommercial$— $677 $5,174 $827 $90 $967 $342 $8,077 
Commercial Other— 4,796 15,102 1,544 149 785 — 22,376 
Commercial Real EstateNon-owner occupied— — 2,610 — 138 1,018 — 3,766 
Owner occupied— — — — — 33 — 33 
Multi-family— — 4,545 — — 1,539 — 6,084 
Farmland— — — 115 — — — 115 
Construction and land development
— — — 17,991 — — — 17,991 
Total gross commercial charge-offs$— $5,473 $27,431 $20,477 $377 $4,342 $342 $58,442 
Term Loans by Origination Year
20232022202120202019PriorRevolving LoansTotal
For the year ended December 31, 2023 (restated)
CommercialCommercial$— $— $— $70 $126 $224 $2,211 $2,631 
Commercial Other258 5,432 2,351 1,273 773 985 — 11,072 
Commercial Real EstateNon-owner occupied— — — — — 2,630 — 2,630 
Owner occupied— — — — 48 1,510 — 1,558 
Multi-family— — — — — 812 — 812 
Construction and land development
— — — — 42 1,559 — 1,601 
Total gross commercial charge-offs$258 $5,432 $2,351 $1,343 $989 $7,720 $2,211 $20,304 
The Company evaluates the credit quality of its other loan portfolios, which includes residential real estate, consumer and lease financing loans, 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 December 31, 2024 and December 31, 2023:
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 
TotalPerforming149,211 161,370 223,592 111,151 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 
December 31, 2023
(Restated)
Term Loans
Amortized Cost Basis by Origination Year
(dollars in thousands)20232022202120202019PriorRevolving loansTotal
Residential real estateResidential first lienPerforming$42,550 $74,613 $37,009 $29,628 $19,647 $110,703 $4 $314,154 
Nonperforming179 50 335 — 139 2,531 — 3,234 
Subtotal42,729 74,663 37,344 29,628 19,786 113,234 4 317,388 
Other residentialPerforming3,245 1,113 377 409 836 2,009 54,571 62,560 
Nonperforming— 9 — — — 178 448 635 
Subtotal3,245 1,122 377 409 836 2,187 55,019 63,195 
ConsumerConsumerPerforming30,748 24,190 31,946 6,116 2,313 10,794 1,502 107,609 
Nonperforming11 55 6 6 — 56 — 134 
Subtotal30,759 24,245 31,952 6,122 2,313 10,850 1,502 107,743 
Consumer otherPerforming185,591 378,077 133,847 52,428 20,269 6,812 — 777,024 
Nonperforming— — — — — — — — 
Subtotal185,591 378,077 133,847 52,428 20,269 6,812 — 777,024 
Leases financingPerforming143,334 157,059 74,359 50,174 30,428 8,863 — 464,217 
Nonperforming1,485 5,043 1,482 317 612 194 — 9,133 
Subtotal144,819 162,102 75,841 50,491 31,040 9,057 — 473,350 
Total
Performing405,468 635,052 277,538 138,755 73,493 139,181 56,077 1,725,564 
Nonperforming1,675 5,157 1,823 323 751 2,959 448 13,136 
Total other loans$407,143 $640,209 $279,361 $139,078 $74,244 $142,140 $56,525 $1,738,700 

The following table presents the gross charge-offs by class of loan and year of origination on the other loan portfolio for the years ended December 31, 2024 and 2023:
Term Loans by Origination Year
(dollars in thousands)20242023202220212020PriorRevolving LoansTotal
For the year ended December 31, 2024
Residential real estateResidential first lien$— $128 $11 $25 $— $483 $— $647 
Other residential— — 16 — — 7 147 170 
ConsumerConsumer13 73 36 11 17 27 10 187 
Consumer other5 28,143 47,205 12,567 5,413 4,531 — 97,864 
Lease financing— 3,735 6,986 2,291 544 767 — 14,323 
Total gross other charge-offs$18 $32,079 $54,254 $14,894 $5,974 $5,815 $157 $113,191 
Term Loans by Origination Year
20232022202120202019PriorRevolving LoansTotal
For the year ended December 31, 2023 (restated)
Residential real estateResidential first lien$— $— $8 $35 $108 $53 $— $204 
Other residential— — — — — 10 57 67 
ConsumerConsumer— 49 23 22 37 36 — 167 
Consumer other1,216 14,786 7,982 4,313 2,499 2,186 — 32,982 
Lease financing669 2,156 1,172 213 542 274 — 5,026 
Total gross other charge-offs$1,885 $16,991 $9,185 $4,583 $3,186 $2,559 $57 $38,446