v3.25.2
LOANS
 3 Months Ended
Mar. 31, 2025
Receivables [Abstract]  
LOANS LOANS
The following table presents total loans outstanding by portfolio class, as of March 31, 2025 and December 31, 2024:
(dollars in thousands)March 31,
2025		December 31,
2024
Commercial:
Commercial$772,876 $818,496 
Commercial other496,686 541,324 
Commercial real estate:
Commercial real estate non-owner occupied1,597,251 1,628,961 
Commercial real estate owner occupied441,910 440,806 
Multi-family486,141 454,249 
Farmland67,023 67,648 
Construction and land development264,966 299,842 
Total commercial loans4,126,853 4,251,326 
Residential real estate:
Residential first lien312,367 315,775 
Other residential60,728 64,782 
Consumer:
Consumer91,371 96,202 
Consumer other53,566 48,099 
Lease financing373,168 391,390 
Total loans$5,018,053 $5,167,574 
Total loans include net deferred loan costs of $0.6 million and $1.4 million at March 31, 2025 and December 31, 2024, respectively, and unearned discounts of $53.3 million and $56.7 million within the lease financing portfolio at March 31, 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 months ended March 31, 2025 and 2024, are summarized as follows:
Three Months Ended March 31,
(dollars in thousands)20252024
Beginning balance$40,410 $20,990 
New loans and other additions2,358 — 
Repayments and other reductions(740)(264)
Ending balance$42,028 $20,726 

The following table represents, by loan portfolio segment, a summary of changes in the allowance for credit losses on loans for the three months ended March 31, 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 March 31, 2025:
Balance, beginning of period$42,776 $36,837 $3,550 $8,002 $5,400 $14,639 $111,204 
Provision for credit losses on loans3,580 2,954 (529)(74)940 3,979 10,850 
Charge-offs(13,300)(723)— (72)(453)(3,448)(17,996)
Recoveries498 1 — 18 48 553 1,118 
Balance, end of period$33,554 $39,069 $3,021 $7,874 $5,935 $15,723 $105,176 
Changes in allowance for credit losses on loans for the three months ended March 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 loans1,776 1,677 8,466 82 5,931 2,010 19,942 
Charge-offs(4,860)(691)— (35)(11,757)(1,665)(19,008)
Recoveries116 152 — 55 87 181 591 
Balance, end of period$26,704 $21,367 $12,629 $5,655 $81,023 $13,466 $160,844 
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 March 31, 2025 and December 31, 2024:
March 31, 2025December 31, 2024
(dollars in thousands)Nonaccrual with allowanceNonaccrual with no allowanceTotal nonaccrualNonaccrual with allowanceNonaccrual with no allowanceTotal nonaccrual
Commercial:
Commercial$9,705 $— $9,705 $2,678 $7,074 $9,752 
Commercial other4,120 — 4,120 3,439 — 3,439 
Commercial real estate:
Commercial real estate non-owner occupied19,669 13,867 33,536 9,173 24,187 33,360 
Commercial real estate owner occupied9,317 9,285 18,602 1,407 16,871 18,278 
Multi-family44,476 8,140 52,616 2,363 51,770 54,133 
Farmland1,492 — 1,492 1,148 — 1,148 
Construction and land development39 8,399 8,438 39 8,399 8,438 
Total commercial loans88,818 39,691 128,509 20,247 108,301 128,548 
Residential real estate:
Residential first lien2,960 481 3,441 2,501 491 2,992 
Other residential468 — 468 446 — 446 
Consumer:
Consumer67 — 67 20 — 20 
Lease financing7,004 — 7,004 8,132 — 8,132 
Total loans$99,317 $40,172 $139,489 $31,346 $108,792 $140,138 
    There was no interest income recognized on nonaccrual loans during the three months ended March 31, 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 $1.3 million for the three months ended March 31, 2025 and 2024, respectively.
Collateral Dependent Financial Assets
A collateral dependent financial asset is a loan that relies solely on the operation or sale of the collateral for repayment. In evaluating the overall risk associated with a loan, the Company considers character, overall financial condition and resources, and payment record of the borrower; the prospects for support from any financially responsible guarantors; and the nature and degree of protection provided by the cash flow and value of any underlying collateral. However, as other sources of repayment become inadequate over time, the significance of the collateral’s value increases and the loan may become collateral dependent.
The table below presents the amortized cost basis of individually evaluated, collateral dependent loans by loan class, for borrowers experiencing financial difficulty, as of March 31, 2025 and December 31, 2024:
Type of Collateral
(dollars in thousands)Real EstateBlanket LienEquipmentTotal
March 31, 2025
Commercial:
Commercial$— $6,693 $575 $7,268 
Commercial real estate:
Non-owner occupied24,424 — — 24,424 
Owner occupied9,542 7,491 — 17,033 
Multi-family52,616 — — 52,616 
Construction and land development8,399 — — 8,399 
Lease financing— — 274 274 
Total collateral dependent loans$94,981 $14,184 $849 $110,014 
December 31, 2024
Commercial:
Commercial$— $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 
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 portfolio as of March 31, 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$3,955 $18 $— $3,973 $9,705 $759,198 $772,876 
Commercial other13,037 3,321 5,670 22,028 4,120 470,538 496,686 
Commercial real estate:
Commercial real estate non-owner occupied
7,173 — — 7,173 33,536 1,556,542 1,597,251 
Commercial real estate owner occupied906 — 257 1,163 18,602 422,145 441,910 
Multi-family5,527 — — 5,527 52,616 427,998 486,141 
Farmland289 — — 289 1,492 65,242 67,023 
Construction and land development1,649 — — 1,649 8,438 254,879 264,966 
Total commercial loans32,536 3,339 5,927 41,802 128,509 3,956,542 4,126,853 
Residential real estate:
Residential first lien59 192 — 251 3,441 308,675 312,367 
Other residential218 — — 218 468 60,042 60,728 
Consumer:
Consumer198 20 — 218 67 91,086 91,371 
Consumer other429 437 — 866 — 52,700 53,566 
Lease financing8,805 1,988 274 11,067 7,004 355,097 373,168 
Total loans$42,245 $5,976 $6,201 $54,422 $139,489 $4,824,142 $5,018,053 
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 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 months ended March 31, 2025 and 2024:
Three Months Ended March 31,
20252024
(dollars in thousands)BalanceCount BalanceCount
Commercial:
Commercial$973 1 $— — 
Commercial other306 2 746 4 
Total commercial loans1,279 3 746 4 
Residential real estate:
Residential first lien150 3 — — 
Other residential11 1 — — 
Lease financing— — 716 3 
Total loan restructurings$1,440 7 $1,462 7 
BalanceCountBalanceCount
Interest Rate Reduction$306 2 $— — 
Term Extension1,134 5 1,462 7 
Payment Deferral— — — — 
Total loan restructurings$1,440 7 $1,462 7 
The Company has not committed to lend any additional amounts to the borrowers that have been granted a loan modification.
The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of our modification efforts. The following table presents the payment performance of such loans that have been modified in the last twelve months:
(dollars in thousands)30-59
days
past due		60-89
days
past due		Past due
90 days
or more		Total
past due		CurrentTotal
Commercial:
Commercial$— $— $— $— $2,302 $2,302 
Commercial other17 — 25 42 569 611 
Commercial real estate:
Commercial real estate non-owner occupied— — 10,557 10,557 21,321 31,878 
Commercial real estate owner occupied— — — — 6,068 6,068 
Multi-family— — — — — — 
Farmland— — — — — — 
Construction and land development— — — — 7,271 7,271 
Total commercial loans17 — 10,582 10,599 37,531 48,130 
Residential real estate:
Residential first lien264 — — 264 282 546 
Other residential37 — — 37 51 88 
Consumer:
Consumer— — — — 42 42 
Consumer other— — — — — — 
Lease financing383 — — 383 635 1,018 
Total loan restructurings$701 $— $10,582 $11,283 $38,541 $49,824 
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 March 31, 2025 and December 31, 2024:
March 31, 2025
Term Loans
Amortized Cost Basis by Origination Year
(dollars in thousands)20252024202320222021PriorRevolving loansTotal
CommercialCommercialAcceptable credit quality$99,917 $94,469 $99,266 $33,772 $56,675 $58,869 $306,767 $749,735 
Special mention— — — — — 51 178 229 
Substandard— 126 2,561 288 1,085 1,480 7,667 13,207 
Substandard – nonaccrual— 84 837 4,271 513 3,218 782 9,705 
Doubtful— — — — — — — — 
Not graded— — — — — — — — 
Subtotal99,917 94,679 102,664 38,331 58,273 63,618 315,394 772,876 
Commercial otherAcceptable credit quality23,371 91,507 84,933 118,294 49,716 30,710 87,045 485,576 
Special mention— 69 1,877 1,567 1,817 174 — 5,504 
Substandard— 200 30 — — 126 1,130 1,486 
Substandard – nonaccrual— 115 1,626 1,321 471 427 160 4,120 
Doubtful— — — — — — — — 
Not graded— — — — — — — — 
Subtotal23,371 91,891 88,466 121,182 52,004 31,437 88,335 496,686 
Commercial real estateNon-owner occupiedAcceptable credit quality93,119 364,235 177,254 424,203 226,709 193,686 11,418 1,490,624 
Special mention— 7,918 4,014 9,851 176 4,244 — 26,203 
Substandard— 62 2,031 7,821 4,118 32,856 — 46,888 
Substandard – nonaccrual— 74 7,737 7,868 4,456 13,401 — 33,536 
Doubtful— — — — — — — — 
Not graded— — — — — — — — 
Subtotal93,119 372,289 191,036 449,743 235,459 244,187 11,418 1,597,251 
Owner occupiedAcceptable credit quality50,398 60,242 48,334 93,495 71,750 93,791 628 418,638 
Special mention— 847 — — — 161 — 1,008 
Substandard333 510 — — — 2,819 — 3,662 
Substandard – nonaccrual— 387 — 17,239 264 408 304 18,602 
Doubtful— — — — — — — — 
Not graded— — — — — — — — 
Subtotal50,731 61,986 48,334 110,734 72,014 97,179 932 441,910 
Multi-familyAcceptable credit quality10,562 40,213 14,622 211,478 75,030 35,158 679 387,742 
Special mention— — 7,650 32,868 — — — 40,518 
Substandard— — — — 5,224 41 — 5,265 
Substandard – nonaccrual— 27,354 8,890 — — 16,372 — 52,616 
Doubtful— — — — — — — — 
Not graded— — — — — — — — 
Subtotal10,562 67,567 31,162 244,346 80,254 51,571 679 486,141 
FarmlandAcceptable credit quality11,051 2,108 8,081 4,120 8,930 28,324 1,505 64,119 
Special mention— — — — — — — — 
Substandard— — 1,210 — 13 189 — 1,412 
Substandard – nonaccrual— — — 344 — 1,100 48 1,492 
Doubtful— — — — — — — — 
Not graded— — — — — — — — 
Subtotal11,051 2,108 9,291 4,464 8,943 29,613 1,553 67,023 
Construction and land developmentAcceptable credit quality41,568 80,744 28,246 57,083 12,009 1,188 25,034 245,872 
Special mention— 1,571 — — — — — 1,571 
Substandard— 5,700 — — — — — 5,700 
Substandard – nonaccrual— — — — 8,399 39 — 8,438 
Doubtful— — — — — — — — 
Not graded367 2,216 456 325 — 21 — 3,385 
Subtotal41,935 90,231 28,702 57,408 20,408 1,248 25,034 264,966 
TotalAcceptable credit quality329,986 733,518 460,736 942,445 500,819 441,726 433,076 3,842,306 
Special mention— 10,405 13,541 44,286 1,993 4,630 178 75,033 
Substandard333 6,598 5,832 8,109 10,440 37,511 8,797 77,620 
Substandard – nonaccrual— 28,014 19,090 31,043 14,103 34,965 1,294 128,509 
Doubtful— — — — — — — — 
Not graded367 2,216 456 325 — 21 — 3,385 
Total commercial loans$330,686 $780,751 $499,655 $1,026,208 $527,355 $518,853 $443,345 $4,126,853 
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 $4,251,326 
The following table presents the gross charge-offs by class of loan and year of origination on the commercial loan portfolio for the three months ended March 31, 2025 and 2024:
Term Loans by Origination Year
(dollars in thousands)20252024202320222021PriorRevolving LoansTotal
For the three months ended March 31, 2025
CommercialCommercial$— $— $— $— $— $64 $— $64 
Commercial Other— 42 792 1,015 227 78 11,082 13,236 
Commercial Real EstateMulti-family— — — — — 723 — 723 
Total gross commercial charge-offs$— $42 $792 $1,015 $227 $865 $11,082 $14,023 
Term Loans by Origination Year
20242023202220212020PriorRevolving LoansTotal
For the three months ended March 31, 2024
CommercialCommercial$— $— $2,450 $— $10 $1 $102 $2,563 
Commercial Other— 866 1,074 294 20 43 — 2,297 
Commercial Real EstateOwner occupied— — — — 138 553 — 691 
Total gross commercial charge-offs$— $866 $3,524 $294 $168 $597 $102 $5,551 
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 March 31, 2025 and December 31, 2024:
March 31, 2025
Term Loans
Amortized Cost Basis by Origination Year
(dollars in thousands)20252024202320222021PriorRevolving LoansTotal
Residential real estateResidential first lienPerforming$2,767 $30,127 $41,063 $68,239 $34,997 $131,696 $37 $308,926 
Nonperforming— — 137 196 307 2,801 — 3,441 
Subtotal2,767 30,127 41,200 68,435 35,304 134,497 37 312,367 
Other residentialPerforming642 2,295 2,143 816 239 1,960 52,165 60,260 
Nonperforming— — — — — 154 314 468 
Subtotal642 2,295 2,143 816 239 2,114 52,479 60,728 
ConsumerConsumerPerforming2,814 20,174 19,647 15,124 22,290 10,135 1,120 91,304 
Nonperforming— — 34 4 — 25 4 67 
Subtotal2,814 20,174 19,681 15,128 22,290 10,160 1,124 91,371 
Consumer otherPerforming— — 370 34,350 8,045 10,801 — 53,566 
Nonperforming— — — — — — — — 
Subtotal— — 370 34,350 8,045 10,801 — 53,566 
Leases financingPerforming26,563 84,352 89,919 94,268 38,173 32,615 — 365,890 
Nonperforming— 484 2,220 3,332 685 557 — 7,278 
Subtotal26,563 84,836 92,139 97,600 38,858 33,172 — 373,168 
TotalPerforming32,786 136,948 153,142 212,797 103,744 187,207 53,322 879,946 
Nonperforming— 484 2,391 3,532 992 3,537 318 11,254 
Total other loans$32,786 $137,432 $155,533 $216,329 $104,736 $190,744 $53,640 $891,200 
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 $916,248 
The following table presents the gross charge-offs by class of loan and year of origination on the other loan portfolio for the three months ended March 31, 2025 and 2024:
Term Loans by Origination Year
(dollars in thousands)20252024202320222021PriorRevolving LoansTotal
For the three months ended March 31, 2025
Residential real estateResidential first lien$— $— $— $— $— $27 $— $27 
Other residential— — — 25 — 1 19 45 
ConsumerConsumer— 1 5 2 — 1 4 13 
Consumer other4 52 17 15 5 347 — 440 
Lease financing— 143 1,706 1,231 209 159 — 3,448 
Total gross other charge-offs$4 $196 $1,728 $1,273 $214 $535 $23 $3,973 
Term Loans by Origination Year
20242023202220212020PriorRevolving LoansTotal
For the three months ended March 31, 2024
Residential real estateResidential first lien$— $— $11 $— $— $— $— $11 
Other residential— — 16 — — — 8 24 
ConsumerConsumer— — — — 6 27 — 33 
Consumer other— 2,657 5,726 1,375 862 1,104 — 11,724 
Lease financing— 123 1,371 114 37 20 — 1,665 
Total gross other charge-offs$— $2,780 $7,124 $1,489 $905 $1,151 $8 $13,457