Credit Quality

6 Months Ended

Jun. 30, 2022

Text Block [Abstract]

Credit Quality

5. CREDIT QUALITY

Management monitors the credit quality of its loans and leases on an ongoing basis. Measurement of delinquency and past due status are based on the contractual terms of each loan. United considers a loan to be past due when it is 30 days or more past its contractual payment due date.

For all loan classes, past due loans and leases are reviewed on a monthly basis to identify loans and leases for nonaccrual status. Generally, when collection in full of the principal and interest is jeopardized, the loan is placed on nonaccrual status. The accrual of interest income on commercial and most consumer loans generally is discontinued when a loan becomes 90 to 120 days past due as to principal or interest. However, regardless of delinquency status, if a loan is fully secured and in the process of collection and resolution of collection is expected in the near term (generally less than 90 days), then the loan will not be placed on nonaccrual status. When interest accruals are discontinued, unpaid interest recognized in income in the current year is reversed, and unpaid interest accrued in prior years is charged to the allowance for credit losses. United’s method of income recognition for loans and leases that are classified as nonaccrual is to recognize interest income on a cash basis or apply the cash receipt to principal when the ultimate collectibility of principal is in doubt. Nonaccrual loans and leases will not normally be returned to accrual status unless all past due principal and interest has been paid and the borrower has evidenced their ability to meet the contractual provisions of the note. Generally, a loan is categorized as a TDR if a concession is granted and there is deterioration in the financial condition of the borrower. The portfolio of TDR loans is monitored monthly.

A loan is categorized as a troubled debt restructuring (“TDR”) if a concession is granted and there is deterioration in the financial condition of the borrower. A loan classified as a TDR will generally retain such classification until the loan is paid in full. However, a one-to-four-family residential mortgage TDR loan that yields a market rate and demonstrates the ability to pay under the terms of the restructured note through a sustained period of repayment performance, which is generally one year, is removed from the TDR classification. Interest income on TDRs is accrued at the reduced rate and the loan is returned to performing status once the borrower demonstrates the ability to pay under the terms of the restructured note through a sustained period of repayment performance, which is generally six months. TDRs can take the form of a reduction of the stated interest rate, splitting a loan into separate loans and leases with market terms on one loan and concessionary terms on the other loan, receipts of assets from a debtor in partial or full satisfaction of a loan, the extension of the maturity date or dates at a stated interest rate lower than the current market rate for new debt with similar risk, the reduction of the face amount or maturity amount of the debt as stated in the instrument or other agreement, or the reduction of accrued interest or any other concessionary type of renegotiated debt. Under United’s current loan policy, a loan is not recognized as a TDR until it becomes probable that the loan will be a TDR.

In response to the coronavirus (“COVID-19”) pandemic and its economic impact on our customers, United implemented a short-term modification program that complied with the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act to provide temporary payment relief , primarily deferral of payments, to those borrowers directly impacted by COVID-19 who were not more than 30 days past due as of December 31, 2019. This program ended on January 1, 2022. As provided for under the CARES Act, these loan modifications are exempt by law from classification as a TDR as defined by GAAP. As of June 30, 2022, United has 40 eligible loan modifications in deferral under section 4013, “Temporary Relief from Troubled Debt Restructurings,” of the CARES Act on $2,031 of loans outstanding, compared to 188 eligible loan modifications in deferral on $18,039 of loans outstanding at December 31, 2021.

As of June 30, 2022, United had TDRs of $25,504 as compared to $35,856 as of December 31, 2021. Of the $25,504 aggregate balance of TDRs at June 30, 2022, $11,298 was on nonaccrual, $3,162 was 90 days or more past due and $140 was 30-89 days past due. Of the $35,856 aggregate balance of TDRs at December 31, 2021, $22,421 was on nonaccrual and $102 was 90 days or more days past due. All these amounts are included in the appropriate categories in the “Age Analysis of Past Due Loans” table on a subsequent page. As of June 30, 2022, there was a commitment to lend additional funds of $49 to a debtor owing a receivable whose terms have been modified in a TDR. During the first six months of 2022, advances of $65 were made to this debtor under a loan that had been previously modified.

The following tables sets forth the balances of TDRs at June 30, 2022 and December 31, 2021 and the reasons for modification:

Reason for modification	June 30, 2022		December 31, 2021
Interest rate reduction	$	2,181	$	3,163
Interest rate reduction and change in terms		1,243		1,412
Concession of principal and term		17		19
Extended maturity		4,752		4,831
Transfer of asset		0		5,407
Change in terms		17,311		21,024
Total	$	25,504	$	35,856

The following table sets forth United’s troubled debt restructurings that have been restructured during the three months ended June 30, 2022 and 2021, segregated by class of loans:

	Troubled Debt Restructurings For the Three Months Ended
	June 30, 2022						June 30, 2021
	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial real estate:
Owner-occupied		0	$	0	$	0		0	$	0	$	0
Nonowner-occupied		0		0		0		1		5,413		5,364
Other commercial		1		132		131		1		181		181
Residential real estate		0		0		0		0		0		0
Construction & land  development		0		0		0		0		0		0
Consumer:
Bankcard		0		0		0		0		0		0
Other consumer		0		0		0		0		0		0
Total		1	$	132	$	131		2	$	5,594	$	5,545
The following table sets forth United’s troubled debt restructurings that have been restructured during the six months ended June 30, 2022 and 2021, segregated by class of loans:
	Troubled Debt Restructurings For the Six Months Ended
	June 30, 2022						June 30, 2021
	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial real estate:
Owner-occupied		1	$	2,801	$	2,750		1	$	940	$	1,106
Nonowner-occupied		0		0		0		2		6,350		6,292
Other commercial		1		132		131		1		181		181
Residential real estate		0		0		0		0		0		0
Construction & land development		0		0		0		0		0		0
Consumer:
Bankcard		0		0		0		0		0		0
Other consumer		0		0		0		0		0		0
Total		2	$	2,933	$	2,881		4	$	7,471	$	7,579

The following table sets forth United’s troubled debt restructurings, based on their post-modification outstanding recorded balance, that have been restructured during the three and six months ended June 30, 2022 and 2021, segregated by the reason for modification:

	Three Months Ended June 30				Six Months Ended June 30
Reason for modification	2022		2021		2022		2021
Interest rate reduction	$	0	$	0	$	0	$	0
Interest rate reduction and change in terms		131		0		131		0
Forgiveness of principal		0		0		0		0
Concession of principal and termp		0		0		0		0
Transfer of asset		0		5,545		0		5,545
Extended maturity		0		0		0		2,034
Change in terms		0		0		2,750		0
Total	$	131	$	5,545	$	2,881	$	7,579

The following table presents troubled debt restructurings, by class of loan, that were restructured during the twelve-month period ended June 30, 2022 and had charge-offs during the six months ended June 30, 2022. No charge-offs were recorded during the three months ended June 30, 2022. The recorded investment amounts presented were as of the June 30, 2022 balance sheet date.

	Six Months Ended June 30, 2022
	Number of Contracts		Recorded Investment
Troubled Debt Restructurings
Commercial real estate:
Owner-occupied		0	$	0
Nonowner-occupied		0		0
Other commercial		1		108
Residential real estate		0		0
Construction & land development		0		0
Consumer:
Bankcard		0		0
Other consumer		0		0
Total		1	$	108

The following table presents troubled debt restructurings, by class of loan, that were restructured during the twelve-month period ended June 30, 2021 and had charge-offs during the three and six months ended June 30, 2021. The recorded investment amounts presented were as of the June 30, 2021 balance sheet date.

	Three Months Ended June 30, 2021				Six Months Ended June 30, 2021
	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Troubled Debt Restructurings
Commercial real estate:
Owner-occupied		0	$	0		0	$	0
Nonowner-occupied		0		0		0		0
Other commercial		0		0		0		0
Residential real estate		1		0		1		0
Construction & land development		1		0		2		0
Consumer:
Bankcard		0		0		0		0
Other consumer		0		0		0		0
Total		2	$	0		3	$	0

The following table sets forth United’s age analysis of its past due loans and leases, segregated by class of loans:

Age Analysis of Past Due Loans and Leases As of June 30, 2022
	30-89 Days Past Due		90 Days or more Past Due		Total Past Due		Current & Other		Total Financing Receivables		90 Days or More Past Due & Accruing
Commercial real estate:
Owner-occupied	$	6,491	$	11,264	$	17,755	$	1,696,217	$	1,713,972	$	2,873
Nonowner-occupied		15,290		10,892		26,182		5,929,657		5,955,839		1,506
Other commercial		42,699		9,196		51,895		3,429,261		3,481,156		1,919
Residential real estate		20,506		23,448		43,954		4,060,894		4,104,848		9,994
Construction & land development		5,121		655		5,776		2,389,508		2,395,284		0
Consumer:
Bankcard		44		43		87		8,564		8,651		43
Other consumer		22,661		3,791		26,452		1,307,923		1,334,375		3,270
Total	$	112,812	$	59,289	$	172,101	$	18,822,024	$	18,994,125	$	19,605

Age Analysis of Past Due Loans and Leases As of December 31, 2021
	30-89 Days Past Due		90 Days or more Past Due		Total Past Due		Current & Other		Total Financing Receivables		90 Days or More Past Due & Accruing
Commercial real estate:
Owner-occupied	$	7,522	$	13,325	$	20,847	$	1,712,329	$	1,733,176	$	611
Nonowner-occupied		5,791		18,829		24,620		5,932,668		5,957,288		545
Other commercial		21,444		15,883		37,327		3,425,034		3,462,361		6,569
Residential real estate		19,488		23,495		42,983		3,648,577		3,691,560		8,241
Construction & land development		6,599		3,096		9,695		2,004,470		2,014,165		383
Consumer:
Bankcard		100		187		287		8,626		8,913		187
Other consumer		17,264		2,615		19,879		1,163,965		1,183,844		2,445
Total	$	78,208	$	77,430	$	155,638	$	17,895,669	$	18,051,307	$	18,981

The following table sets forth United’s nonaccrual loans and leases, segregated by class of loans:

	At June 30, 2022						At December 31, 2021
	Nonaccruals		With No Related Allowance for Credit Losses		90 Days or More Past Due & Accruing		Nonaccruals		With No Related Allowance for Credit Losses		90 Days or More Past Due & Accruing
Commercial Real Estate:
Owner-occupied	$	8,391	$	8,391	$	2,873	$	12,714	$	12,714	$	611
Nonowner-occupied		9,386		9,386		1,506		18,284		18,284		545
Other Commercial		7,277		5,894		1,919		9,314		8,261		6,569
Residential Real Estate		13,454		12,667		9,994		15,254		14,298		8,241
Construction		655		655		0		2,713		2,713		383
Consumer:
Bankcard		0		0		43		0		0		187
Other consumer		521		521		3,270		170		170		2,445
Total	$	39,684	$	37,514	$	19,605	$	58,449	$	56,440	$	18,981

Interest income recognized on nonaccrual loans was insignificant during the three and six months ended June 30, 2022 and 2021.

For the adoption of ASC Topic 326, United elected the practical expedient to measure expected credit losses on collateral dependent loans and leases based on the difference between the loan’s amortized cost and the collateral’s fair value, adjusted for selling costs. The following table presents the amortized cost basis of collateral-dependent loans and leases in which repayment is expected to be derived substantially through the operation or sale of the collateral and where the borrower is experiencing financial difficulty, by class of loans and leases as of June 30, 2022 and December 31, 2021:

	Collateral Dependent Loans and Leases
	At June 30, 2022
	Residential Property		Business Assets		Land		Commercial Property		Other		Total
Commercial real estate:
Owner-occupied	$	0	$	28	$	0	$	7,734	$	9,459	$	17,221
Nonowner-occupied		3,393		0		0		2,809		18,557		24,759
Other commercial		2,093		5,011		0		0		428		7,532
Residential real estate		13,295		0		0		0		0		13,295
Construction & land development		0		0		1,520		0		334		1,854
Consumer:
Bankcard		0		0		0		0		0		0
Other consumer		0		0		0		0		0		0
Total	$	18,781	$	5,039	$	1,520	$	10,543	$	28,778	$	64,661

	Collateral Dependent Loans and Leases
	At December 31, 2021
	Residential Property		Business Assets		Land		Commercial Property		Other		Total
Commercial real estate:
Owner-occupied	$	0	$	38	$	0	$	9,775	$	11,223	$	21,036
Nonowner-occupied		7,085		0		703		8,665		52,299		68,752
Other commercial		2,093		15,225		0		0		732		18,050
Residential real estate		16,749		0		0		0		0		16,749
Construction & land development		0		0		4,770		0		1,103		5,873
Consumer:
Bankcard		0		0		0		0		0		0
Other consumer		0		0		0		0		0		0
Total	$	25,927	$	15,263	$	5,473	$	18,440	$	65,357	$	130,460

United categorizes loans and leases into risk categories based on relevant information about the ability of borrowers to service their debt: current financial information, historical payment experience, credit documentation, underlying collateral (if any), public information and current economic trends, among other factors.

United uses the following definitions for risk ratings:

• Pass

• Special Mention

• Substandard

• Doubtful

For United’s loans with a corporate credit exposure, United analyzes loans individually to classify the loans as to credit risk. Review and analysis of criticized (special mention-rated loans in the amount of $1,000 or greater) and classified (substandard-rated and worse in the amount of $500 and greater) loans is completed once per quarter. Review of notes with committed exposure of $2,000 or greater is completed at least annually. For loans with a consumer credit exposure, United internally assigns a grade based upon an individual loan’s delinquency status. United reviews and updates, as necessary, these grades on a quarterly basis.

Special mention loans, with a corporate credit exposure, have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loans or in the Company’s credit position at some future date. Borrowers may be experiencing adverse operating trends (declining revenues or margins) or an ill proportioned balance sheet (e.g., increasing inventory without an increase in sales, high leverage, tight liquidity). Adverse economic or market conditions, such as interest rate increases or the entry of a new competitor, may also support a special mention rating. Nonfinancial reasons for rating a credit exposure special mention include management problems, pending litigation, an ineffective loan agreement or other material structural weakness, and any other significant deviation from prudent lending practices. For loans with a consumer credit exposure, loans that are past due 30-89 days are generally considered special mention.

A substandard loan with a corporate credit exposure is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt by the borrower. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. They require more intensive supervision by management. Substandard loans are generally characterized by current or expected unprofitable operations, inadequate debt service coverage, inadequate liquidity, or marginal capitalization. Repayment may depend on collateral or other credit risk mitigants. For some substandard loans, the likelihood of full collection of interest and principal may be in doubt and thus, placed on nonaccrual. For loans with a consumer credit exposure, loans that are 90 days or more past due or that have been placed on nonaccrual are considered substandard.

A loan with corporate credit exposure is classified as doubtful if it has all the weaknesses inherent in one classified as substandard with the added characteristic that the weaknesses make collection in full, on the basis of currently existing facts, conditions, and values, highly questionable. A doubtful loan has a high probability of total or substantial loss, but because of specific pending events that may strengthen the loan, its classification as loss is deferred. Doubtful borrowers are usually in default, lack adequate liquidity or capital, and lack the resources necessary to remain an operating entity. Pending events can include mergers, acquisitions, liquidations, capital injections, the perfection of liens on additional collateral, the valuation of collateral, and refinancing. Generally, there are not any loans with a consumer credit exposure that are classified as doubtful. Usually, they are charged-off prior to such a classification.

Based on the most recent analysis performed, the risk category of loans and leases by class of loans is as follows:

Commercial Real Estate – Owner-occupied
As of June 30, 2022	Term Loans Origination Year													Revolving loans amortized cost basis		Revolving loans converted to term loans		Total
	2022		2021		2020		2019		2018		Prior
Internal Risk Grade:
Pass	$	130,241	$	334,991	$	300,384	$	139,810	$	121,248	$	598,569		$	39,519	$	376	$	1,665,138
Special Mention		0		310		531		504		2,947		20,524			943		0		25,759
Substandard		0		633		47		28		651		21,188			0		239		22,786
Doubtful		0		0		0		0		0		289			0		0		289
Total	$	130,241	$	335,934	$	300,962	$	140,342	$	124,846	$	640,570		$	40,462	$	615	$	1,713,972
Current-period charge-offs		0		0		0		0		0		(31	)		0		0		(31	)
Current-period recoveries		0		0		0		0		0		465			0		0		465
Current-period net charge-offs	$	0	$	0	$	0	$	0	$	0	$	434		$	0	$	0	$	434

	Term Loans Origination Year														Revolving loans amortized cost basis		Revolving loans and leases converted to term loans		Total
As of December 31, 2021	2021		2020		2019		2018		2017			Prior
Internal Risk Grade:
Pass	$	319,007	$	310,893	$	161,075	$	135,472	$	168,874		$	539,640		$	39,117	$	401	$	1,674,479
Special Mention		0		0		51		5,399		712			20,672			959		0		27,793
Substandard		0		55		38		661		1,304			27,458			839		244		30,599
Doubtful		0		0		0		0		0			305			0		0		305
Total	$	319,007	$	310,948	$	161,164	$	141,532	$	170,890		$	588,075		$	40,915	$	645	$	1,733,176
YTD charge-offs		0		0		0		0		(44	)		(370	)		0		0		(414	)
YTD recoveries		0		0		0		0		13			856			0		0		869
YTD net charge-offs	$	0	$	0	$	0	$	0	$	(31)		$	486		$	0	$	0	$	455

Commercial Real Estate – Nonowner-occupied

	Term Loans Origination Year												Revolving loans amortized cost basis		Revolving loans converted to term loans		Total
As of June 30, 2022	2022		2021		2020		2019		2018		Prior
Internal Risk Grade:
Pass	$	747,959	$	1,495,714	$	780,303	$	612,860	$	403,475	$	1,556,089	$	123,280	$	152	$	5,719,832
Special Mention		604		0		2,916		82,777		5,698		22,995		0		0		114,990
Substandard		0		0		697		34,079		28,230		58,011		0		0		121,017
Doubtful		0		0		0		0		0		0		0		0		0
Total	$	748,563	$	1,495,714	$	783,916	$	729,716	$	437,403	$	1,637,095	$	123,280	$	152	$	5,955,839
Current-period charge-offs		0		0		0		0		0		0		0		0		0
Current-period recoveries		0		0		0		0		0		115		0		0		115
Current-period net charge-offs	$	0	$	0	$	0	$	0	$	0	$	115	$	0	$	0	$	115

	Term Loans Origination Year													Revolving loans amortized cost basis		Revolving loans and leases converted to term loans		Total
As of December 31, 2021	2021		2020		2019		2018		2017		Prior
Internal Risk Grade:
Pass	$	1,558,474	$	925,508	$	707,570	$	460,660	$	397,003	$	1,490,548		$	102,561	$	2,039	$	5,644,363
Special Mention		819		2,953		113,655		5,826		372		40,534			2,793		0		166,952
Substandard		0		714		13,042		28,411		1,095		102,711			0		0		145,973
Doubtful		0		0		0		0		0		0			0		0		0
Total	$	1,559,293	$	929,175	$	834,267	$	494,897	$	398,470	$	1,633,793		$	105,354	$	2,039	$	5,957,288
YTD charge-offs		0		0		0		0		0		(3,531	)		0		0		(3,531	)
YTD recoveries		0		0		0		0		0		1,907			0		0		1,097
YTD net charge-offs	$	0	$	0	$	0	$	0	$	0	$	(1,624)		$	0	$	0	$	(1,624)

Other commercial

	Term Loans and leases Origination Year																Revolving loans and leases amortized cost basis		Revolving loans and leases converted to term loans		Total
As of June 30, 2022	2022		2021			2020		2019			2018			Prior
Internal Risk Grade:
Pass	$	567,622	$	697,587		$	432,390	$	284,419		$	89,628		$	291,631		$	928,405	$	1,795	$	3,293,477
Special Mention		14,698		3,308			421		2,510			2,029			3,714			102,288		50		129,018
Substandard		4		82			203		770			7,025			12,259			38,092		125		58,560
Doubtful		0		0			0		0			101			0			0		0		101
Total	$	582,324	$	700,977		$	433,014	$	287,699		$	98,783		$	307,604		$	1,068,785	$	1,970	$	3,481,156
Current-period charge-offs		0		(31	)		0		(200	)		(9	)		(554	)		0		0		(794	)
Current-period recoveries		0		0			0		4			705			2,629			0		0		3,338
Current-period net charge-offs	$	0	$	(31)		$	0	$	(196)		$	696		$	2,075		$	0	$	0	$	2,544

	Term Loans and leases																	Revolving loans and leases amortized cost basis			Revolving loans and leases converted to term loans		Total
	Origination Year
As of December 31, 2021	2021		2020			2019			2018			2017			Prior
Internal Risk Grade:
Pass	$	924,726	$	557,422		$	306,945		$	107,426		$	87,090		$	76,032		$	1,211,865		$	2,038	$	3,273,544
Special Mention		1,880		0			31,614			3,012			1,801			3,390			76,987			61		118,745
Substandard		793		11			1,561			4,930			2,146			18,963			41,357			205		69,966
Doubtful		0		0			0			0			0			106			0			0		106
Total	$	927,399	$	557,433		$	340,120		$	115,368		$	91,037		$	98,491		$	1,330,209		$	2,304	$	3,462,361
YTD charge-offs		0		(87	)		(31	)		(200	)		(174	)		(5,650	)		(40	)		0		(6,182	)
YTD recoveries		0		3			30			86			34			4,154			0			0		4,307
YTD net charge-offs	$	0	$	(84)		$	(1)		$	(114)		$	(140)		$	(1,496)		$	(40)		$	0	$	(1,875)

Residential Real Estate

	Term Loans															Revolving loans amortized cost basis		Revolving loans converted to term loans		Total
	Origination Year
As of June 30, 2022	2022		2021			2020		2019		2018			Prior
Internal Risk Grade:
Pass	$	820,260	$	851,239		$	500,110	$	317,301	$	264,524		$	878,279		$	439,679	$	2,891	$	4,074,283
Special Mention		0		0			0		0		221			5,055			2,079		0		7,355
Substandard		0		1,654			69		449		649			18,897			1,492		0		23,210
Doubtful		0		0			0		0		0			0			0		0		0
Total	$	820,260	$	852,893		$	500,179	$	317,750	$	265,394		$	902,231		$	443,250	$	2,891	$	4,104,848
Current-period charge-offs		0		(735	)		0		0		(224	)		(313	)		0		0		(1,272	)
Current-period recoveries		0		0			0		0		14			1,044			1		0		1,059
Current-period net charge-offs	$	0	$	(735)		$	0	$	0	$	(210)		$	731		$	1	$	0	$	(213)

	Term Loans																Revolving loans amortized cost basis		Revolving loans converted to term loans		Total
	Origination Year
As of December 31, 2021	2021		2020		2019			2018			2017			Prior
Internal Risk Grade:
Pass	$	815,693	$	568,323	$	383,250		$	315,211		$	178,101		$	931,730		$	455,705	$	2,972	$	3,650,985
Special Mention		0		0		0			223			91			12,251			2,339		0		14,904
Substandard		464		0		444			617			2,763			19,773			1,497		113		25,671
Doubtful		0		0		0			0			0			0			0		0		0
Total	$	816,157	$	568,323	$	383,694		$	316,051		$	180,955		$	963,754		$	459,541	$	3,085	$	3,691,560
YTD charge-offs		0		0		(37	)		(38	)		(167	)		(5,774	)		0		0		(6,016	)
YTD recoveries		0		0		0			0			3			2,384			13		0		2,400
YTD net charge-offs	$	0	$	0	$	(37)		$	(38)		$	(164)		$	(3,390)		$	13	$	0	$	(3,616)

Construction and Land Development

	Term Loans													Revolving loans amortized cost basis		Revolving loans converted to term loans		Total
	Origination Year
As of June 30, 2022	2022		2021		2020		2019		2018		Prior
Internal Risk Grade:
Pass	$	281,030	$	960,857	$	452,808	$	246,205	$	109,234	$	107,108		$	229,992	$	0	$	2,387,234
Special Mention		0		0		67		3,258		0		1,209			979		0		5,513
Substandard		0		276		0		132		0		2,129			0		0		2,537
Doubtful		0		0		0		0		0		0			0		0		0
Total	$	281,030	$	961,133	$	452,875	$	249,595	$	109,234	$	110,446		$	230,971	$	0	$	2,395,284
Current-period charge-offs		0		0		0		0		0		(2	)		0		0		(2	)
Current-period recoveries		0		0		0		0		0		1,261			0		0		1,261
Current-period net charge-offs	$	0	$	0	$	0	$	0	$	0	$	1,259		$	0	$	0	$	1,259

	Term Loans																		Revolving loans amortized cost basis			Revolving loans converted to term loans		Total
	Origination Year
As of December 31, 2021	2021			2020			2019			2018			2017			Prior
Internal Risk Grade:
Pass	$	767,351		$	518,291		$	278,020		$	152,062		$	18,371		$	74,532		$	192,421		$	0	$	2,001,048
Special Mention		0			69			3,261			0			0			1,237			995			0		5,562
Substandard		332			0			280			925			0			5,272			746			0		7,555
Doubtful		0			0			0			0			0			0			0			0		0
Total	$	767,683		$	518,360		$	281,561		$	152,987		$	18,371		$	81,041		$	194,162		$	0	$	2,014,165
YTD charge-offs		0			0			0			0			(177	)		(383	)		0			0		(560	)
YTD recoveries		0			0			0			0			133			471			0			0		604
YTD net charge-offs	$	0		$	0		$	0		$	0		$	(44	)	$	88		$	0		$	0	$	44
Bankcard
	Term Loans																		Revolving loans amortized cost basis			Revolving loans converted to term loans		Total
	Origination Year
As of June 30, 2022	2022			2021			2020			2019			2018			Prior
Internal Risk Grade:
Pass	$	0		$	0		$	0		$	0		$	0		$	0		$	8,564		$	0	$	8,564
Special Mention		0			0			0			0			0			0			44			0		44
Substandard		0			0			0			0			0			0			43			0		43
Doubtful		0			0			0			0			0			0			0			0		0
Total	$	0		$	0		$	0		$	0		$	0		$	0		$	8,651		$	0	$	8,651
Current-period charge-offs		0			0			0			0			0			0			(245	)		0		(245	)
Current-period recoveries		0			0			0			0			0			0			3			0		3
Current-period net charge-offs	$	0		$	0		$	0		$	0		$	0		$	0		$	(242	)	$	0	$	(242	)
	Term Loans																		Revolving loans amortized cost basis			Revolving loans converted to term loans		Total
	Origination Year
As of December 31, 2021	2021			2020			2019			2018			2017			Prior
Internal Risk Grade:
Pass	$	0		$	0		$	0		$	0		$	0		$	0		$	8,626		$	0	$	8,626
Special Mention		0			0			0			0			0			0			100			0		100
Substandard		0			0			0			0			0			0			187			0		187
Doubtful		0			0			0			0			0			0			0			0		0
Total	$	0		$	0		$	0		$	0		$	0		$	0		$	8,913		$	0	$	8,913
YTD charge-offs		0			0			0			0			0			0			(190	)		0		(190	)
YTD recoveries		0			0			0			0			0						42			0		42
YTD net charge-offs	$	0		$	0		$	0		$	0		$	0		$	0		$	(148	)	$	0	$	(148	)
Other Consumer
	Term Loans																		Revolving loans amortized cost basis			Revolving loans converted to term loans		Total
	Origination Year
As of June 30, 2022	2022			2021			2020			2019			2018			Prior
Internal Risk Grade:
Pass	$	422,042		$	397,073		$	226,998		$	173,114		$	83,363		$	940		$	3,175		$	0	$	1,306,705
Special Mention		2,644			10,644			4,942			3,323			1,617			547			34			0		23,751
Substandard		236			1,655			1,422			344			225			37			0			0		3,919
Doubtful		0			0			0			0			0			0			0			0		0
Total	$	424,922		$	409,372		$	233,362		$	176,781		$	85,205		$	1,524		$	3,209		$	0	$	1,334,375
Current-period charge-offs		(12	)		(514	)		(354	)		(205	)		(64	)		(102	)		0			0		(1,251	)
Current-period recoveries		0			37			34			53			44			107			0			0		275
Current-period net charge-offs	$	(12)		$	(477)		$	(320)		$	(152)		$	(20)		$	5		$	0		$	0	$	(976)

	Term Loans																		Revolving loans amortized cost basis			Revolving loans converted to term loans		Total
	Origination Year
As of December 31, 2021	2021			2020			2019			2018			2017			Prior
Internal Risk Grade:
Pass	$	473,430		$	293,023		$	234,340		$	119,678		$	29,697		$	10,335		$	3,465		$	0	$	1,163,968
Special Mention		5,600			5,630			2,948			2,036			569			466			13			0		17,262
Substandard		903			930			456			211			22			87			5			0		2,614
Doubtful		0			0			0			0			0			0			0			0		0
Total	$	479,933		$	299,583		$	237,744		$	121,925		$	30,288		$	10,888		$	3,483		$	0	$	1,183,844
YTD charge-offs		(101	)		(776	)		(709	)		(483	)		(126	)		(203	)		(6	)		0		(2,404	)
YTD recoveries		5			86			51			101			18			186			2			0		449
YTD net charge-offs	$	(96)		$	(690)		$	(658)		$	(382)		$	(108)		$	(17)		$	(4)		$	0	$	(1,955)

At June 30, 2022 and December 31, 2021, other real estate owned (“OREO”) included in other assets in the Consolidated Balance Sheets was $13,847 and $14,823, respectively. OREO consists of real estate acquired in foreclosure or other settlement of loans. Such assets are carried at the lower of the investment in the assets or the fair value of the assets less estimated selling costs. Any adjustment to the fair value at the date of transfer is charged against the allowance for loan losses. Any subsequent valuation adjustments as well as any costs relating to operating, holding or disposing of the property are recorded in other expense in the period incurred. At June 30, 2022, there were no consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process as compared to $13 at December 31, 2021.