Schedule of Risk Category of Loans by Class and Origination Year |
The risk category of loans by class of loans and origination year as of September 30, 2024 follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Term Loans Amortized Cost Basis by Origination Year | | | | Revolving Loans Amortized Cost Basis | | Revolving Loans Amortized Cost Basis Converted to Term During the Period | | | (dollars in thousands) | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | | Prior | | | | Total | September 30, 2024 | | | | | | | | | | | | | | | | | | | Construction and land development | | | | | | | | | | | | | | | | | | | Pass | | $ | 493 | | | $ | 40,861 | | | $ | 111,686 | | | $ | 51,163 | | | $ | 17,283 | | | $ | 2,340 | | | $ | 8,476 | | | $ | — | | | $ | 232,302 | | Special mention | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Substandard | | — | | | — | | | 9,659 | | | — | | | 2,945 | | | 3,028 | | | — | | | — | | | 15,632 | | Doubtful | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Loss | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Total construction and land development | | 493 | | | 40,861 | | | 121,345 | | | 51,163 | | | 20,228 | | | 5,368 | | | 8,476 | | | — | | | 247,934 | | Real estate - other: | | | | | | | | | | | | | | | | | | | 1-4 family residential | | | | | | | | | | | | | | | | | | | Pass | | 6,271 | | | 21,137 | | | 33,768 | | | 17,995 | | | 6,736 | | | 17,562 | | | 45,329 | | | — | | | 148,798 | | Special mention | | — | | | — | | | — | | | — | | | — | | | 847 | | | — | | | — | | | 847 | | Substandard | | — | | | — | | | 2,895 | | | — | | | — | | | — | | | — | | | — | | | 2,895 | | Doubtful | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Loss | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Total 1-4 family residential | | 6,271 | | | 21,137 | | | 36,663 | | | 17,995 | | | 6,736 | | | 18,409 | | | 45,329 | | | — | | | 152,540 | | Multifamily residential | | | | | | | | | | | | | | | | | | | Pass | | 1,625 | | | 18,808 | | | 91,437 | | | 89,992 | | | 5,287 | | | 43,506 | | | 1,479 | | | — | | | 252,134 | | Special mention | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Substandard | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Doubtful | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Loss | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Total multifamily residential | | 1,625 | | | 18,808 | | | 91,437 | | | 89,992 | | | 5,287 | | | 43,506 | | | 1,479 | | | — | | | 252,134 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Term Loans Amortized Cost Basis by Origination Year | | | | Revolving Loans Amortized Cost Basis | | Revolving Loans Amortized Cost Basis Converted to Term During the Period | | | (dollars in thousands) | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | | Prior | | | | Total | September 30, 2024 | | | | | | | | | | | | | | | | | | | Commercial real estate and other | | | | | | | | | | | | | | | | | | | Pass | | 74,938 | | | 83,188 | | | 457,671 | | | 398,356 | | | 101,050 | | | 472,661 | | | 106,386 | | | 151 | | | 1,694,401 | | Special mention | | — | | | 9,585 | | | 5,059 | | | 14,148 | | | 2,277 | | | 10,870 | | | 1,596 | | | 497 | | | 44,032 | | Substandard | | — | | | — | | | — | | | 11,573 | | | — | | | 5,902 | | | — | | | — | | | 17,475 | | Doubtful | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Loss | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Total commercial real estate and other | | 74,938 | | | 92,773 | | | 462,730 | | | 424,077 | | | 103,327 | | | 489,433 | | | 107,982 | | | 648 | | | 1,755,908 | | Commercial and industrial | | | | | | | | | | | | | | | | | | | Pass | | 48,106 | | | 75,264 | | | 122,585 | | | 45,355 | | | 15,765 | | | 70,103 | | | 271,764 | | | — | | | 648,942 | | Special mention | | 383 | | | 1,251 | | | — | | | 7,556 | | | 285 | | | 2,099 | | | 36,995 | | | — | | | 48,569 | | Substandard | | — | | | 50 | | | 21,535 | | | 268 | | | — | | | 3,644 | | | 42,464 | | | — | | | 67,961 | | Doubtful | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Loss | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Total commercial and industrial | | 48,489 | | | 76,565 | | | 144,120 | | | 53,179 | | | 16,050 | | | 75,846 | | | 351,223 | | | — | | | 765,472 | | Consumer | | | | | | | | | | | | | | | | | | | Pass | | 1,088 | | | — | | | 1,107 | | | 22,946 | | | 100 | | | 7 | | | 143 | | | — | | | 25,391 | | Special mention | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Substandard | | — | | | — | | | — | | | 335 | | | — | | | — | | | — | | | — | | | 335 | | Doubtful | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Loss | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Total consumer | | 1,088 | | | — | | | 1,107 | | | 23,281 | | | 100 | | | 7 | | | 143 | | | — | | | 25,726 | | Total loans | | $ | 132,904 | | | $ | 250,144 | | | $ | 857,402 | | | $ | 659,687 | | | $ | 151,728 | | | $ | 632,569 | | | $ | 514,632 | | | $ | 648 | | | $ | 3,199,714 | | | | | | | | | | | | | | | | | | | | | Total by risk rating: | | | | | | | | | | | | | | | | | | | Pass | | $ | 132,521 | | | $ | 239,258 | | | $ | 818,254 | | | $ | 625,807 | | | $ | 146,221 | | | $ | 606,179 | | | $ | 433,577 | | | $ | 151 | | | $ | 3,001,968 | | Special mention | | 383 | | | 10,836 | | | 5,059 | | | 21,704 | | | 2,562 | | | 13,816 | | | 38,591 | | | 497 | | | 93,448 | | Substandard | | — | | | 50 | | | 34,089 | | | 12,176 | | | 2,945 | | | 12,574 | | | 42,464 | | | — | | | 104,298 | | Doubtful | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Loss | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Total loans | | $ | 132,904 | | | $ | 250,144 | | | $ | 857,402 | | | $ | 659,687 | | | $ | 151,728 | | | $ | 632,569 | | | $ | 514,632 | | | $ | 648 | | | $ | 3,199,714 | |
The risk category of loans by class of loans and origination year as of December 31, 2023 follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Term Loans Amortized Cost Basis by Origination Year | | | | Revolving Loans Amortized Cost Basis | | Revolving Loans Amortized Cost Basis Converted to Term During the Period | | | (dollars in thousands) | | 2023 | | 2022 | | 2021 | | 2020 | | 2019 | | Prior | | | | Total | December 31, 2023 | | | | | | | | | | | | | | | | | | | Construction and land development | | | | | | | | | | | | | | | | | | | Pass | | $ | 25,113 | | | $ | 127,496 | | | $ | 71,199 | | | $ | 17,022 | | | $ | 2,071 | | | $ | 528 | | | $ | — | | | $ | — | | | $ | 243,429 | | Special mention | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Substandard | | — | | | — | | | — | | | — | | | — | | | 92 | | | — | | | — | | | 92 | | Doubtful | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Loss | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Total construction and land development | | 25,113 | | | 127,496 | | | 71,199 | | | 17,022 | | | 2,071 | | | 620 | | | — | | | — | | | 243,521 | | Real estate - other: | | | | | | | | | | | | | | | | | | | 1-4 family residential | | | | | | | | | | | | | | | | | | | Pass | | 24,928 | | | 35,670 | | | 20,207 | | | 6,887 | | | 4,884 | | | 15,582 | | | 35,645 | | | 100 | | | 143,903 | | Special mention | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Substandard | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Doubtful | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Loss | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Total 1-4 family residential | | 24,928 | | | 35,670 | | | 20,207 | | | 6,887 | | | 4,884 | | | 15,582 | | | 35,645 | | | 100 | | | 143,903 | | Multifamily residential | | | | | | | | | | | | | | | | | | | Pass | | 18,803 | | | 61,677 | | | 73,365 | | | 5,712 | | | 27,292 | | | 21,245 | | | 149 | | | — | | | 208,243 | | Special mention | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Substandard | | — | | | 13,004 | | | — | | | — | | | — | | | — | | | — | | | — | | | 13,004 | | Doubtful | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Loss | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Total multifamily residential | | 18,803 | | | 74,681 | | | 73,365 | | | 5,712 | | | 27,292 | | | 21,245 | | | 149 | | | — | | | 221,247 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Term Loans Amortized Cost Basis by Origination Year | | | | Revolving Loans Amortized Cost Basis | | Revolving Loans Amortized Cost Basis Converted to Term During the Period | | | (dollars in thousands) | | 2023 | | 2022 | | 2021 | | 2020 | | 2019 | | Prior | | | | Total | Commercial real estate and other | | | | | | | | | | | | | | | | | | | Pass | | 76,434 | | | 304,524 | | | 287,245 | | | 57,736 | | | 51,992 | | | 203,976 | | | 36,543 | | | 1,626 | | | 1,020,076 | | Special mention | | — | | | 2,701 | | | — | | | — | | | — | | | — | | | 295 | | | — | | | 2,996 | | Substandard | | — | | | — | | | — | | | — | | | — | | | 1,171 | | | — | | | — | | | 1,171 | | Doubtful | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Loss | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Total commercial real estate and other | | 76,434 | | | 307,225 | | | 287,245 | | | 57,736 | | | 51,992 | | | 205,147 | | | 36,838 | | | 1,626 | | | 1,024,243 | | Commercial and industrial | | | | | | | | | | | | | | | | | | | Pass | | 46,701 | | | 70,658 | | | 12,883 | | | 7,095 | | | 8,266 | | | 13,715 | | | 153,712 | | | 1,877 | | | 314,907 | | Special mention | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Substandard | | — | | | 346 | | | 64 | | | — | | | 1,208 | | | 121 | | | 3,097 | | | 399 | | | 5,235 | | Doubtful | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Loss | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Total commercial and industrial | | 46,701 | | | 71,004 | | | 12,947 | | | 7,095 | | | 9,474 | | | 13,836 | | | 156,809 | | | 2,276 | | | 320,142 | | Consumer | | | | | | | | | | | | | | | | | | | Pass | | 163 | | | — | | | 39 | | | 91 | | | 6 | | | 11 | | | 4,076 | | | — | | | 4,386 | | Special mention | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Substandard | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Doubtful | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Loss | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Total consumer | | 163 | | | — | | | 39 | | | 91 | | | 6 | | | 11 | | | 4,076 | | | — | | | 4,386 | | Total loans | | $ | 192,142 | | | $ | 616,076 | | | $ | 465,002 | | | $ | 94,543 | | | $ | 95,719 | | | $ | 256,441 | | | $ | 233,517 | | | $ | 4,002 | | | $ | 1,957,442 | | | | | | | | | | | | | | | | | | | | | Total by risk rating: | | | | | | | | | | | | | | | | | | | Pass | | $ | 192,142 | | | $ | 600,025 | | | $ | 464,938 | | | $ | 94,543 | | | $ | 94,511 | | | $ | 255,057 | | | $ | 230,125 | | | $ | 3,603 | | | $ | 1,934,944 | | Special mention | | — | | | 2,701 | | | — | | | — | | | — | | | — | | | 295 | | | — | | | 2,996 | | Substandard | | — | | | 13,350 | | | 64 | | | — | | | 1,208 | | | 1,384 | | | 3,097 | | | 399 | | | 19,502 | | Doubtful | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Loss | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Total loans | | $ | 192,142 | | | $ | 616,076 | | | $ | 465,002 | | | $ | 94,543 | | | $ | 95,719 | | | $ | 256,441 | | | $ | 233,517 | | | $ | 4,002 | | | $ | 1,957,442 | |
A summary of gross charge-offs by class of loans and origination year for the nine months ended September 30, 2024 and 2023 follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Term Loans Gross Charge-offs by Origination Year | | | | Revolving Loans Amortized Cost Basis | | Revolving Loans Amortized Cost Basis Converted to Term During the Period | | | (dollars in thousands) | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | | Prior | | | | Total | Nine Months Ended September 30, 2024 | | | | | | | | | | | | | | | | | | | Construction and land development | | $ | — | | | $ | — | | | $ | 967 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 967 | | Real estate - other: | | | | | | | | | | | | | | | | | | | 1-4 family residential | | — | | | — | | | — | | | — | | | — | | | — | | | 1 | | | — | | | 1 | | Multifamily residential | | — | | | — | | | 1,456 | | | — | | | — | | | — | | | — | | | — | | | 1,456 | | Commercial real estate and other | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Commercial and industrial | | — | | | 37 | | | 24 | | | — | | | — | | | — | | | — | | | — | | | 61 | | Consumer | | — | | | — | | | — | | | 135 | | | — | | | — | | | — | | | — | | | 135 | | Total | | $ | — | | | $ | 37 | | | $ | 2,447 | | | $ | 135 | | | $ | — | | | $ | — | | | $ | 1 | | | $ | — | | | $ | 2,620 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Term Loans Gross Charge-offs by Origination Year | | | | Revolving Loans Amortized Cost Basis | | Revolving Loans Amortized Cost Basis Converted to Term During the Period | | | (dollars in thousands) | | 2023 | | 2022 | | 2021 | | 2020 | | 2019 | | Prior | | | | Total | Nine Months Ended September 30, 2023 | | | | | | | | | | | | | | | | | | | Construction and land development | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | Real estate - other: | | | | | | | | | | | | | | | | | | | 1-4 family residential | | — | | | — | | | — | | | — | | | — | | | 12 | | | — | | | — | | | 12 | | Multifamily residential | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Commercial real estate and other | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Commercial and industrial | | — | | | — | | | — | | | 15 | | | — | | | 9 | | | — | | | — | | | 24 | | Consumer | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | Total | | $ | — | | | $ | — | | | $ | — | | | $ | 15 | | | $ | — | | | $ | 21 | | | $ | — | | | $ | — | | | $ | 36 | |
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Schedule of Past Due Loans and Collateral Dependent Loans |
A summary of past due loans as of September 30, 2024 and December 31, 2023 follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Current | | | | | | | (dollars in thousands) | | 30-59 Days Past Due | | 60-89 Days Past Due | | Over 90 Days Past Due | | Total Past Due | | Current | | Nonaccrual | | Total | September 30, 2024 | | | | | | | | | | | | | | | Construction and land development | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 238,275 | | | $ | 9,659 | | | $ | 247,934 | | Real estate - other: | | | | | | | | | | | | | | | 1-4 family residential | | — | | | — | | | — | | | — | | | 149,645 | | | 2,895 | | | 152,540 | | Multifamily residential | | — | | | — | | | — | | | — | | | 252,134 | | | — | | | 252,134 | | Commercial real estate and other | | 18,175 | | | — | | | — | | | 18,175 | | | 1,728,628 | | | 9,105 | | | 1,755,908 | | Commercial and industrial | | 667 | | | — | | | — | | | 667 | | | 760,803 | | | 4,002 | | | 765,472 | | Consumer | | 96 | | | 172 | | | 37 | | | 305 | | | 25,421 | | | — | | | 25,726 | | | | $ | 18,938 | | | $ | 172 | | | $ | 37 | | | $ | 19,147 | | | $ | 3,154,906 | | | $ | 25,661 | | | $ | 3,199,714 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Current | | | | | | | (dollars in thousands) | | 30-59 Days Past Due | | 60-89 Days Past Due | | Over 90 Days Past Due | | Total Past Due | | Current | | Nonaccrual | | Total | December 31, 2023 | | | | | | | | | | | | | | | Construction and land development | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 243,521 | | | $ | — | | | $ | 243,521 | | Real estate - other: | | | | | | | | | | | | | | | 1-4 family residential | | — | | | — | | | — | | | — | | | 143,903 | | | — | | | 143,903 | | Multifamily residential | | — | | | — | | | — | | | — | | | 208,243 | | | 13,004 | | | 221,247 | | Commercial real estate and other | | — | | | — | | | — | | | — | | | 1,024,243 | | | — | | | 1,024,243 | | Commercial and industrial | | 19 | | | — | | | — | | | 19 | | | 320,123 | | | — | | | 320,142 | | Consumer | | — | | | — | | | — | | | — | | | 4,386 | | | — | | | 4,386 | | | | $ | 19 | | | $ | — | | | $ | — | | | $ | 19 | | | $ | 1,944,419 | | | $ | 13,004 | | | $ | 1,957,442 | |
A summary of collateral dependent loans by collateral type as of September 30, 2024 and December 31, 2023 follows: | | | | | | | | | | | | | | | | | | | | | | | Type of Collateral | (dollars in thousands) | | Commercial Real Estate | | Residential Real Estate | | Business Assets | September 30, 2024 | | | | | | | Construction and land development | | $ | — | | | $ | 9,659 | | | $ | — | | Real estate - other: | | | | | | | 1-4 family residential | | — | | | 2,895 | | | — | | | | | | | | | Commercial real estate and other | | 10,535 | | | — | | | — | | Commercial and industrial | | — | | | 271 | | | 2,301 | | | | | | | | | | | $ | 10,535 | | | $ | 12,825 | | | $ | 2,301 | | | | | | | | | | | | | | | | | | | December 31, 2023 | | | | | | | | | | | | | | | | | | | | | | | | | | | | Multifamily residential | | $ | — | | | $ | 13,004 | | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | $ | — | | | $ | 13,004 | | | $ | — | |
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Schedule of Changes in Allowance for Credit Losses |
A summary of the changes in the ACL for loans and unfunded commitments for the periods indicated follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | (dollars in thousands) | | 2024 | | 2023 | | 2024 | | 2023 | Allowance for loan losses (ALL) | | | | | | | | | Balance, beginning of period | | $ | 23,788 | | | $ | 22,502 | | | $ | 22,569 | | | $ | 17,099 | | Adoption of ASU No. 2016-13(1) | | — | | | — | | | — | | | 5,027 | | Initial allowance for acquired PCD loans | | 11,216 | | | — | | | 11,216 | | | — | | Provision for loan losses(2) | | 19,711 | | | 202 | | | 22,387 | | | 600 | | Charge-offs | | (1,163) | | | — | | | (2,620) | | | (36) | | Recoveries | | — | | | 1 | | | — | | | 15 | | Net (charge-offs) recoveries | | (1,163) | | | 1 | | | (2,620) | | | (21) | | Balance, end of period | | $ | 53,552 | | | $ | 22,705 | | | $ | 53,552 | | | $ | 22,705 | | Reserve for unfunded loan commitments | | | | | | | | | Balance, beginning of period | | $ | 819 | | | $ | 1,538 | | | $ | 933 | | | $ | 1,310 | | Adoption of ASU No. 2016-13(1) | | — | | | — | | | — | | | 439 | | Provision for (reversal of) credit losses for unfunded loan commitments(3) | | 3,252 | | | (298) | | | 3,138 | | | (509) | | Balance, end of period | | 4,071 | | | 1,240 | | | 4,071 | | | 1,240 | | Allowance for credit losses, end of period | | $ | 57,623 | | | $ | 23,945 | | | $ | 57,623 | | | $ | 23,945 | |
(1)Represents the impact of adopting ASU 2016-13, Financial Instruments - Credit Losses on January 1, 2023. As a result of adopting ASU 2016-13, the Company’s methodology to compute our ACL is based on a CECL methodology, rather than the previously applied incurred loss methodology. (2)Includes an initial provision for credit losses for non-PCD loans acquired in the Merger of $18.5 million for the three and nine months ended September 30, 2024. There was no similar activity in the comparable 2023 period. (3)Includes an initial provision for credit losses for unfunded commitments acquired in the Merger of $2.7 million for the three and nine months ended September 30, 2024. There was no similar activity in the comparable 2023 period. A summary of changes in the ALL by loan portfolio segment for the periods indicated follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (dollars in thousands) | | Construction and Land Development | | Real Estate - Other | | Commercial & Industrial | | Consumer | | Total | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2024 | | | | | | | | | | | Beginning of period | | $ | 2,942 | | | $ | 17,048 | | | $ | 3,795 | | | $ | 3 | | | $ | 23,788 | | | | | | | | | | | | | Initial allowance for acquired PCD loans | | 328 | | | 2,392 | | | 8,355 | | | 141 | | | 11,216 | | (Reversal of) provision for loan losses(1) | | (219) | | | 10,020 | | | 8,769 | | | 1,141 | | | 19,711 | | Charge-offs | | (967) | | | — | | | (61) | | | (135) | | | (1,163) | | Recoveries | | — | | | — | | | — | | | — | | | — | | Net charge-offs | | (967) | | | — | | | (61) | | | (135) | | | (1,163) | | End of period | | $ | 2,084 | | | $ | 29,460 | | | $ | 20,858 | | | $ | 1,150 | | | $ | 53,552 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2023 | | | | | | | | | | | Beginning of period | | $ | 3,556 | | | $ | 15,097 | | | $ | 3,808 | | | $ | 41 | | | $ | 22,502 | | | | | | | | | | | | | (Reversal of) provision for loan losses | | (1,021) | | | 1,318 | | | (70) | | | (25) | | | 202 | | Charge-offs | | — | | | — | | | — | | | — | | | — | | Recoveries | | — | | | — | | | 1 | | | — | | | 1 | | Net recoveries | | — | | | — | | | 1 | | | — | | | 1 | | End of period | | $ | 2,535 | | | $ | 16,415 | | | $ | 3,739 | | | $ | 16 | | | $ | 22,705 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1)Includes an initial provision for credit losses for non-PCD loans acquired in the Merger of $18.5 million for the three months ended September 30, 2024. There was no similar activity in the comparable 2023 period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (dollars in thousands) | | Construction and Land Development | | Real Estate - Other | | Commercial & Industrial | | Consumer | | Total | Nine Months Ended September 30, 2024 | | | | | | | | | | | Beginning of period | | $ | 2,032 | | | $ | 16,280 | | | $ | 4,242 | | | $ | 15 | | | $ | 22,569 | | Initial allowance for acquired PCD loans | | 328 | | | 2,392 | | | 8,355 | | | 141 | | | 11,216 | | Provision for loan losses(1) | | 691 | | | 12,245 | | | 8,322 | | | 1,129 | | | 22,387 | | Charge-offs | | (967) | | | (1,457) | | | (61) | | | (135) | | | (2,620) | | Recoveries | | — | | | — | | | — | | | — | | | — | | Net charge-offs | | $ | (967) | | | $ | (1,457) | | | $ | (61) | | | $ | (135) | | | $ | (2,620) | | End of period | | $ | 2,084 | | | $ | 29,460 | | | $ | 20,858 | | | $ | 1,150 | | | $ | 53,552 | | | | | | | | | | | | | Nine Months Ended September 30, 2023 | | | | | | | | | | | Beginning of period | | $ | 2,301 | | | $ | 11,691 | | | $ | 3,079 | | | $ | 28 | | | $ | 17,099 | | Adoption of ASU No. 2016-13(2) | | 881 | | | 2,983 | | | 1,132 | | | 31 | | | 5,027 | | (Reversal of) provision for loan losses | | (647) | | | 1,753 | | | (463) | | | (43) | | | 600 | | Charge-offs | | — | | | (12) | | | (24) | | | — | | | (36) | | Recoveries | | — | | | — | | | 15 | | | — | | | 15 | | Net charge-offs | | $ | — | | | $ | (12) | | | $ | (9) | | | $ | — | | | $ | (21) | | End of period | | $ | 2,535 | | | $ | 16,415 | | | $ | 3,739 | | | $ | 16 | | | $ | 22,705 | |
(1)Includes an initial provision for credit losses for non-PCD loans acquired in the Merger of $18.5 million for the nine months ended September 30, 2024. There was no similar activity in the comparable 2023 period. (2)Represents the impact of adopting ASU 2016-13, Financial Instruments - Credit Losses on January 1, 2023. As a result of adopting ASU 2016-13, the Company’s methodology to compute our ACL is based on a CECL methodology, rather than the previously applied incurred loss methodology.
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