| Loans |
LoansLoans held for investment are categorized into the following segments: •Construction and land development: Loans are extended to both commercial and consumer customers which are collateralized by and for the purpose of funding land development and construction projects, including 1-4 family residential construction, multi-family property and non-farm residential property where the primary source of repayment is from proceeds of the sale, refinancing or permanent financing of the property. •Commercial real estate - owner-occupied: Loans are extended to commercial customers for the purpose of acquiring real estate to be occupied by the borrower's business. These loans are collateralized by the subject property and the repayment of these loans is largely dependent on the performance of the company occupying the property. •Commercial real estate - non owner-occupied: Loans are extended to commercial customers for the purpose of acquiring commercial property where occupancy by the borrower is not their primary intent. These loans are viewed primarily as cash flow loans, collateralized by the subject property, and the repayment of these loans is largely dependent on rental income from the successful operation of the property. •Residential real estate: Loans are extended to consumer customers and collateralized primarily by 1-4 family residential properties and include fixed and variable rate mortgages, home equity mortgages, and home equity lines of credit. Loans are primarily written based on conventional loan agency guidelines, including loans that exceed agency value limitations. Sources of repayment are largely dependent on the occupant of the residential property. •Commercial and financial: Loans are extended to commercial customers. The purpose of the loans can be working capital, physical asset expansion, asset acquisition or other business purposes. Loans may be collateralized by assets owned by the borrower or the borrower's business. Commercial loans are based primarily on the historical and projected cash flow of the borrower's business and secondarily on the capacity of credit enhancements, guarantees and underlying collateral provided by the borrower. •Consumer: Loans are extended to consumer customers. The segment includes both installment loans and lines of credit which may be collateralized or non-collateralized. •Paycheck Protection Program (“PPP”): Loans originated under a temporary program established by the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), and extended by the Economic Aid Act. Under the terms of the program, balances may be forgiven if the borrower uses the funds in a manner consistent with the program guidelines, and repayment is guaranteed by the U.S. government. In the third quarter of 2022, to align with the Company’s transition of the calculation of expected credit losses to a new modeling tool, $100 million in loans to commercial borrowers collateralized by residential properties were reclassified from “Residential real estate” to “Commercial real estate - non owner-occupied.” The following tables present net loan balances by segment as of: | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2022 | | (In thousands) | Portfolio Loans | | Acquired Non-PCD Loans | | PCD Loans | | Total | | Construction and land development | $ | 338,070 | | | $ | 23,808 | | | $ | 35 | | | $ | 361,913 | | | Commercial real estate - owner-occupied | 988,614 | | | 245,943 | | | 18,902 | | | 1,253,459 | | | Commercial real estate - non owner-occupied | 1,568,138 | | | 469,363 | | | 70,113 | | | 2,107,614 | | | Residential real estate | 1,488,359 | | | 106,597 | | | 4,809 | | | 1,599,765 | | | Commercial and financial | 1,091,665 | | | 78,406 | | | 12,313 | | | 1,182,384 | | | Consumer | 176,895 | | | 3,521 | | | — | | | 180,416 | | | Paycheck Protection Program | 1,616 | | | 3,678 | | | — | | | 5,294 | | | Totals | $ | 5,653,357 | | | $ | 931,316 | | | $ | 106,172 | | | $ | 6,690,845 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2021 | | (In thousands) | Portfolio Loans | | Acquired Non-PCD Loans | | PCD Loans | | Total | | Construction and land development | $ | 199,341 | | | $ | 31,438 | | | $ | 45 | | | $ | 230,824 | | | Commercial real estate - owner occupied | 983,517 | | | 186,812 | | | 27,445 | | | 1,197,774 | | | Commercial real estate - non-owner occupied | 1,278,180 | | | 382,554 | | | 75,705 | | | 1,736,439 | | | Residential real estate | 1,261,306 | | | 156,957 | | | 7,091 | | | 1,425,354 | | | Commercial and financial | 968,318 | | | 84,395 | | | 16,643 | | | 1,069,356 | | | Consumer | 169,507 | | | 4,658 | | | 10 | | | 174,175 | | | Paycheck Protection Program | 69,503 | | | 21,604 | | | — | | | 91,107 | | | Totals | $ | 4,929,672 | | | $ | 868,418 | | | $ | 126,939 | | | $ | 5,925,029 | |
The amortized cost basis of loans at September 30, 2022 included net deferred costs of $30.1 million. At December 31, 2021, the amortized cost basis included net deferred costs of $31.0 million on non-PPP portfolio loans and net deferred fees of $2.4 million on PPP loans. At September 30, 2022, the remaining fair value adjustments on acquired loans were $19.1 million, or 1.8% of the outstanding acquired loan balances, compared to $23.1 million, or 2.3% of the acquired loan balances at December 31, 2021. The discount is accreted into interest income over the remaining lives of the related loans on a level yield basis. Accrued interest receivable is included within Other Assets and was $17.6 million and $14.7 million at September 30, 2022 and December 31, 2021, respectively. The following tables present the status of net loan balances as of September 30, 2022 and December 31, 2021. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2022 | | (In thousands) | Current | | Accruing
30-59 Days
Past Due | | Accruing
60-89 Days
Past Due | | Accruing
Greater
Than
90 Days | | Nonaccrual | | Total | | Portfolio Loans | | | | | | | | | | | | | Construction and land development | $ | 338,063 | | | $ | — | | | $ | — | | | $ | — | | | $ | 7 | | | $ | 338,070 | | | Commercial real estate - owner-occupied | 987,534 | | | — | | | — | | | — | | | 1,080 | | | 988,614 | | | Commercial real estate - non owner-occupied | 1,568,107 | | | — | | | — | | | — | | | 31 | | | 1,568,138 | | | Residential real estate | 1,476,907 | | | 4,458 | | | 291 | | | — | | | 6,703 | | | 1,488,359 | | | Commercial and financial | 1,087,617 | | | 1,197 | | | 119 | | | — | | | 2,732 | | | 1,091,665 | | | Consumer | 176,351 | | | 387 | | | 47 | | | — | | | 110 | | | 176,895 | | Paycheck Protection Program1 | 1,315 | | | 29 | | | 272 | | | — | | | — | | | 1,616 | | | Total Portfolio Loans | $ | 5,635,894 | | | $ | 6,071 | | | $ | 729 | | | $ | — | | | $ | 10,663 | | | $ | 5,653,357 | | | | | | | | | | | | | | | Acquired Non-PCD Loans | | | | | | | | | | | | | Construction and land development | $ | 23,808 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 23,808 | | | Commercial real estate - owner-occupied | 245,943 | | | — | | | — | | | — | | | — | | | 245,943 | | | Commercial real estate - non owner-occupied | 467,459 | | | 122 | | | — | | | 738 | | | 1,044 | | | 469,363 | | | Residential real estate | 105,653 | | | 426 | | | — | | | — | | | 518 | | | 106,597 | | | Commercial and financial | 77,935 | | | 89 | | | — | | | — | | | 382 | | | 78,406 | | | Consumer | 3,263 | | | 26 | | | 6 | | | — | | | 226 | | | 3,521 | | Paycheck Protection Program1 | 3,671 | | | — | | | 7 | | | — | | | — | | | 3,678 | | | Total Acquired Non-PCD Loans | $ | 927,732 | | | $ | 663 | | | $ | 13 | | | $ | 738 | | | $ | 2,170 | | | $ | 931,316 | | | | | | | | | | | | | | | PCD Loans | | | | | | | | | | | | | Construction and land development | $ | 33 | | | $ | — | | | $ | — | | | $ | — | | | $ | 2 | | | $ | 35 | | | Commercial real estate - owner-occupied | 18,343 | | | — | | | — | | | — | | | 559 | | | 18,902 | | | Commercial real estate - non owner-occupied | 66,965 | | | — | | | — | | | — | | | 3,148 | | | 70,113 | | | Residential real estate | 3,852 | | | 260 | | | — | | | — | | | 697 | | | 4,809 | | | Commercial and financial | 8,088 | | | — | | | — | | | — | | | 4,225 | | | 12,313 | | | Consumer | — | | | — | | | — | | | — | | | — | | | — | | | Total PCD Loans | $ | 97,281 | | | $ | 260 | | | $ | — | | | $ | — | | | $ | 8,631 | | | $ | 106,172 | | | | | | | | | | | | | | | Total Loans | $ | 6,660,907 | | | $ | 6,994 | | | $ | 742 | | | $ | 738 | | | $ | 21,464 | | | $ | 6,690,845 | | | | | | | | | | | | | | 1Paycheck Protection Program loans are not reflected as past due when forgiveness applications are being processed by the SBA. Repayment of principal and interest is fully guaranteed by the U.S. government. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2021 | | (In thousands) | Current | | Accruing
30-59 Days
Past Due | | Accruing
60-89 Days
Past Due | | Accruing
Greater
Than
90 Days | | Nonaccrual | | Total | | Portfolio Loans | | | | | | | | | | | | | Construction and land development | $ | 199,087 | | | $ | — | | | $ | — | | | $ | — | | | $ | 254 | | | $ | 199,341 | | | Commercial real estate - owner occupied | 982,804 | | | — | | | — | | | — | | | 713 | | | 983,517 | | | Commercial real estate - non-owner occupied | 1,276,582 | | | — | | | — | | | — | | | 1,598 | | | 1,278,180 | | | Residential real estate | 1,248,160 | | | 3,457 | | | 143 | | | — | | | 9,546 | | | 1,261,306 | | | Commercial and financial | 963,828 | | | 851 | | | 41 | | | — | | | 3,598 | | | 968,318 | | | Consumer | 168,791 | | | 565 | | | 23 | | | 15 | | | 113 | | | 169,507 | | Paycheck Protection Program1 | 69,434 | | | — | | | — | | | 69 | | | — | | | 69,503 | | | Total Portfolio Loans | $ | 4,908,686 | | | $ | 4,873 | | | $ | 207 | | | $ | 84 | | | $ | 15,822 | | | $ | 4,929,672 | | | | | | | | | | | | | | | Acquired Non-PCD Loans | | | | | | | | | | | | | Construction and land development | $ | 31,438 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 31,438 | | | Commercial real estate - owner occupied | 186,652 | | | — | | | 160 | | | — | | | — | | | 186,812 | | | Commercial real estate - non-owner occupied | 381,510 | | | — | | | — | | | — | | | 1,044 | | | 382,554 | | | Residential real estate | 154,981 | | | 182 | | | — | | | — | | | 1,794 | | | 156,957 | | | Commercial and financial | 84,180 | | | — | | | 40 | | | — | | | 175 | | | 84,395 | | | Consumer | 4,082 | | | 135 | | | — | | | — | | | 441 | | | 4,658 | | Paycheck Protection Program1 | 21,567 | | | — | | | — | | | 37 | | | — | | | 21,604 | | | Total Acquired Non-PCD Loans | $ | 864,410 | | | $ | 317 | | | $ | 200 | | | $ | 37 | | | $ | 3,454 | | | $ | 868,418 | | | | | | | | | | | | | | | PCD Loans | | | | | | | | | | | | | Construction and land development | $ | 40 | | | $ | — | | | $ | — | | | $ | — | | | $ | 5 | | | $ | 45 | | | Commercial real estate - owner occupied | 24,192 | | | — | | | — | | | — | | | 3,253 | | | 27,445 | | | Commercial real estate - non-owner occupied | 72,442 | | | — | | | — | | | — | | | 3,263 | | | 75,705 | | | Residential real estate | 5,386 | | | — | | | — | | | — | | | 1,705 | | | 7,091 | | | Commercial and financial | 13,547 | | | — | | | — | | | — | | | 3,096 | | | 16,643 | | | Consumer | 10 | | | — | | | — | | | — | | | — | | | 10 | | | Total PCD Loans | $ | 115,617 | | | $ | — | | | $ | — | | | $ | — | | | $ | 11,322 | | | $ | 126,939 | | | | | | | | | | | | | | | Total Loans | $ | 5,888,713 | | | $ | 5,190 | | | $ | 407 | | | $ | 121 | | | $ | 30,598 | | | $ | 5,925,029 | | | | | | | | | | | | | | 1Paycheck Protection Program loans are not reflected as past due when forgiveness applications are being processed by the SBA. Repayment of principal and interest is fully guaranteed by the U.S. government. |
All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest subsequently received on such loans is accounted for under the cost-recovery method, whereby interest income is not recognized until the loan balance is reduced to zero. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current, and future payments are reasonably assured. The Company recognized $0.2 million and $0.3 million in interest income on nonaccrual loans during each of the three months ended September 30, 2022 and 2021, respectively. The Company recognized $1.4 million and $0.9 million in interest income on nonaccrual loans during the nine months ended September 30, 2022 and 2021, respectively. The following tables present net balances of loans on nonaccrual status and the related allowance for credit losses, if any, as of: | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2022 | | (In thousands) | Nonaccrual Loans With No Related Allowance | | Nonaccrual Loans With an Allowance | | Total Nonaccrual Loans | | Allowance for Credit Losses | | Construction and land development | $ | 9 | | | $ | — | | | $ | 9 | | | $ | — | | | Commercial real estate - owner-occupied | 1,080 | | | 559 | | | 1,639 | | | 45 | | | Commercial real estate - non owner-occupied | 2,342 | | | 1,881 | | | 4,223 | | | 1,300 | | | Residential real estate | 7,684 | | | 234 | | | 7,918 | | | 173 | | | Commercial and financial | 4,980 | | | 2,359 | | | 7,339 | | | 1,472 | | | Consumer | 46 | | | 290 | | | 336 | | | 290 | | | | | | | | | | | Totals | $ | 16,141 | | | $ | 5,323 | | | $ | 21,464 | | | $ | 3,280 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2021 | | (In thousands) | Nonaccrual Loans With No Related Allowance | | Nonaccrual Loans With an Allowance | | Total Nonaccrual Loans | | Allowance for Credit Losses | | Construction and land development | $ | 37 | | | $ | 222 | | | $ | 259 | | | $ | 92 | | | Commercial real estate - owner-occupied | 2,976 | | | 990 | | | 3,966 | | | 419 | | | Commercial real estate - non owner-occupied | 4,490 | | | 1,415 | | | 5,905 | | | 27 | | | Residential real estate | 12,358 | | | 687 | | | 13,045 | | | 357 | | | Commercial and financial | 2,676 | | | 4,193 | | | 6,869 | | | 2,384 | | | Consumer | 29 | | | 525 | | | 554 | | | 525 | | | Totals | $ | 22,566 | | | $ | 8,032 | | | $ | 30,598 | | | $ | 3,804 | |
Collateral-Dependent Loans Loans are considered collateral-dependent when the repayment, based on the Company's assessment as of the reporting date, is expected to be provided substantially through the operation or sale of the underlying collateral and there are no other available and reliable sources of repayment. The following table presents collateral-dependent loans as of: | | | | | | | | | | | | | (In thousands) | September 30, 2022 | December 31, 2021 | | Construction and land development | $ | 11 | | | $ | 271 | | | Commercial real estate - owner-occupied | 2,368 | | | 4,706 | | | Commercial real estate - non owner-occupied | 3,218 | | | 4,923 | | | Residential real estate | 9,779 | | | 16,334 | | | Commercial and financial | 5,476 | | | 8,741 | | | Consumer | 481 | | | 741 | | | Totals | $ | 21,333 | | | $ | 35,716 | |
Loans by Risk Rating The Company utilizes an internal asset classification system as a means of identifying problem and potential problem loans. The following classifications are used to categorize loans under the internal classification system: •Pass: Loans that are not problem loans or potential problem loans are considered to be pass-rated. •Special Mention: Loans that do not currently expose the Company to sufficient risk to warrant classification in the Substandard or Doubtful categories, but possess weaknesses that deserve management's close attention are deemed to be Special Mention. •Substandard: Loans with the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. •Substandard Impaired: Loans typically placed on nonaccrual and considered to be collateral-dependent or accruing TDRs. •Doubtful: Loans that have all the weaknesses inherent in those classified Substandard with the added characteristic that the weakness present makes collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The principal balance of loans classified as doubtful are likely to be charged off. The following tables present the risk rating of loans by year of origination as of: | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2022 | | (In thousands) | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving | Total | | Construction and Land Development | | | | | | | | | | Risk Ratings: | | | | | | | | | | Pass | $ | 138,044 | | $ | 127,715 | | $ | 12,724 | | $ | 17,839 | | $ | 6,943 | | $ | 12,573 | | $ | 46,064 | | $ | 361,902 | | | Special Mention | — | | — | | — | | — | | — | | — | | — | | — | | | Substandard | — | | — | | — | | — | | — | | — | | — | | — | | | Substandard Impaired | — | | — | | — | | — | | — | | 11 | | — | | 11 | | | Doubtful | — | | — | | — | | — | | — | | — | | — | | — | | | Total | $ | 138,044 | | $ | 127,715 | | $ | 12,724 | | $ | 17,839 | | $ | 6,943 | | $ | 12,584 | | $ | 46,064 | | $ | 361,913 | | | Commercial real estate - owner-occupied | | | | | | | | | | Risk Ratings: | | | | | | | | | | Pass | $ | 137,279 | | $ | 194,852 | | $ | 153,023 | | $ | 180,220 | | $ | 116,511 | | $ | 445,680 | | $ | 13,926 | | $ | 1,241,491 | | | Special Mention | 694 | | — | | — | | — | | 764 | | 2,909 | | — | | 4,367 | | | Substandard | — | | — | | — | | 2,646 | | — | | 1,956 | | — | | 4,602 | | | Substandard Impaired | — | | — | | — | | 314 | | 304 | | 2,381 | | — | | 2,999 | | | Doubtful | — | | — | | — | | — | | — | | — | | — | | — | | | Total | $ | 137,973 | | $ | 194,852 | | $ | 153,023 | | $ | 183,180 | | $ | 117,579 | | $ | 452,926 | | $ | 13,926 | | $ | 1,253,459 | | | Commercial real estate - non owner-occupied | | | | | | | | | | Risk Ratings: | | | | | | | | | | Pass | $ | 379,918 | | $ | 430,128 | | $ | 213,128 | | $ | 291,043 | | $ | 194,840 | | $ | 548,896 | | $ | 26,578 | | $ | 2,084,531 | | | Special Mention | — | | — | | 738 | | — | | — | | 1,436 | | — | | 2,174 | | | Substandard | — | | — | | 4,709 | | — | | 5,515 | | 5,724 | | — | | 15,948 | | | Substandard Impaired | — | | — | | 1,044 | | 1,849 | | 31 | | 2,037 | | — | | 4,961 | | | Doubtful | — | | — | | — | | — | | — | | — | | — | | — | | | Total | $ | 379,918 | | $ | 430,128 | | $ | 219,619 | | $ | 292,892 | | $ | 200,386 | | $ | 558,093 | | $ | 26,578 | | $ | 2,107,614 | | | Residential real estate | | | | | | | | | | Risk Ratings: | | | | | | | | | | Pass | $ | 165,480 | | $ | 496,317 | | $ | 104,888 | | $ | 69,576 | | $ | 89,632 | | $ | 249,545 | | $ | 411,635 | | $ | 1,587,073 | | | Special Mention | 24 | | — | | 50 | | — | | — | | 343 | | 843 | | 1,260 | | | Substandard | — | | — | | — | | — | | — | | — | | 194 | | 194 | | | Substandard Impaired | — | | — | | 136 | | 123 | | 86 | | 8,896 | | 1,997 | | 11,238 | | | Doubtful | — | | — | | — | | — | | — | | — | | — | | — | | | Total | $ | 165,504 | | $ | 496,317 | | $ | 105,074 | | $ | 69,699 | | $ | 89,718 | | $ | 258,784 | | $ | 414,669 | | $ | 1,599,765 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2022 | | (In thousands) | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving | Total | | Commercial and financial | | | | | | | | | | Risk Ratings: | | | | | | | | | | Pass | $ | 220,218 | | $ | 292,894 | | $ | 151,871 | | $ | 75,083 | | $ | 51,569 | | $ | 59,354 | | $ | 299,146 | | $ | 1,150,135 | | | Special Mention | 1,288 | | 452 | | 121 | | 566 | | 205 | | 333 | | 361 | | 3,326 | | | Substandard | — | | — | | 11,098 | | 5,756 | | 1,875 | | 2,304 | | 256 | | 21,289 | | | Substandard Impaired | 6 | | — | | 204 | | 270 | | 4,298 | | 2,829 | | 27 | | 7,634 | | | Doubtful | — | | — | | — | | — | | — | | — | | — | | — | | | Total | $ | 221,512 | | $ | 293,346 | | $ | 163,294 | | $ | 81,675 | | $ | 57,947 | | $ | 64,820 | | $ | 299,790 | | $ | 1,182,384 | | | Consumer | | | | | | | | | | Risk Ratings: | | | | | | | | | | Pass | $ | 36,074 | | $ | 41,798 | | $ | 25,282 | | $ | 18,908 | | $ | 12,322 | | $ | 18,192 | | $ | 24,793 | | $ | 177,369 | | | Special Mention | — | | 31 | | 136 | | 58 | | 10 | | 160 | | 1,914 | | 2,309 | | | Substandard | — | | — | | 12 | | 12 | | 2 | | 8 | | 223 | | 257 | | | Substandard Impaired | — | | 7 | | 24 | | 57 | | 52 | | 130 | | 211 | | 481 | | | Doubtful | — | | — | | — | | — | | — | | — | | — | | — | | | Total | $ | 36,074 | | $ | 41,836 | | $ | 25,454 | | $ | 19,035 | | $ | 12,386 | | $ | 18,490 | | $ | 27,141 | | $ | 180,416 | | | Paycheck Protection Program | | | | | | | | | | Risk Ratings: | | | | | | | | | | Pass | $ | — | | $ | 3,210 | | $ | 2,084 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 5,294 | | | | | | | | | | | | | | | | | | | | | Total | $ | — | | $ | 3,210 | | $ | 2,084 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 5,294 | | | Consolidated | | | | | | | | | | Risk Ratings: | | | | | | | | | | Pass | $ | 1,077,013 | | $ | 1,586,914 | | $ | 663,000 | | $ | 652,669 | | $ | 471,817 | | $ | 1,334,240 | | $ | 822,142 | | $ | 6,607,795 | | | Special Mention | 2,006 | | 483 | | 1,045 | | 624 | | 979 | | 5,181 | | 3,118 | | 13,436 | | | Substandard | — | | — | | 15,819 | | 8,414 | | 7,392 | | 9,992 | | 673 | | 42,290 | | | Substandard Impaired | 6 | | 7 | | 1,408 | | 2,613 | | 4,771 | | 16,284 | | 2,235 | | 27,324 | | | Doubtful | — | | — | | — | | — | | — | | — | | — | | — | | | Total | $ | 1,079,025 | | $ | 1,587,404 | | $ | 681,272 | | $ | 664,320 | | $ | 484,959 | | $ | 1,365,697 | | $ | 828,168 | | $ | 6,690,845 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2021 | | (In thousands) | 2021 | 2020 | 2019 | 2018 | 2017 | Prior | Revolving | Total | | Construction and Land Development | | | | | | | | | | Risk Ratings: | | | | | | | | | | Pass | $ | 94,318 | | $ | 23,860 | | $ | 38,058 | | $ | 25,507 | | $ | 3,995 | | $ | 15,466 | | $ | 29,349 | | $ | 230,553 | | | Special Mention | — | | — | | — | | — | | — | | — | | — | | — | | | Substandard | — | | — | | — | | — | | — | | — | | — | | — | | | Substandard Impaired | — | | — | | — | | 222 | | — | | 49 | | — | | 271 | | | Doubtful | — | | — | | — | | — | | — | | — | | — | | — | | | Total | $ | 94,318 | | $ | 23,860 | | $ | 38,058 | | $ | 25,729 | | $ | 3,995 | | $ | 15,515 | | $ | 29,349 | | $ | 230,824 | | | Commercial real estate - owner-occupied | | | | | | | | | | Risk Ratings: | | | | | | | | | | Pass | $ | 205,404 | | $ | 154,432 | | $ | 179,786 | | $ | 132,353 | | $ | 125,763 | | $ | 363,986 | | $ | 10,005 | | $ | 1,171,729 | | | Special Mention | — | | 6,527 | | 5,370 | | 649 | | 218 | | 3,250 | | — | | 16,014 | | | Substandard | — | | — | | — | | — | | 3,290 | | 1,610 | | — | | 4,900 | | | Substandard Impaired | — | | — | | 2,742 | | 310 | | 596 | | 1,483 | | — | | 5,131 | | | Doubtful | — | | — | | — | | — | | — | | — | | — | | — | | | Total | $ | 205,404 | | $ | 160,959 | | $ | 187,898 | | $ | 133,312 | | $ | 129,867 | | $ | 370,329 | | $ | 10,005 | | $ | 1,197,774 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2021 | | (In thousands) | 2021 | 2020 | 2019 | 2018 | 2017 | Prior | Revolving | Total | | Commercial real estate - non owner-occupied | | | | | | | | | | Risk Ratings: | | | | | | | | | | Pass | $ | 395,308 | | $ | 207,824 | | $ | 298,021 | | $ | 186,339 | | $ | 110,990 | | $ | 460,435 | | $ | 6,477 | | $ | 1,665,394 | | | Special Mention | — | | — | | 844 | | — | | 289 | | 13,850 | | — | | 14,983 | | | Substandard | — | | 4,776 | | 3,009 | | 23,206 | | 1,900 | | 17,266 | | — | | 50,157 | | | Substandard Impaired | — | | 1,044 | | 1,849 | | — | | 326 | | 2,686 | | — | | 5,905 | | | Doubtful | — | | — | | — | | — | | — | | — | | — | | — | | | Total | $ | 395,308 | | $ | 213,644 | | $ | 303,723 | | $ | 209,545 | | $ | 113,505 | | $ | 494,237 | | $ | 6,477 | | $ | 1,736,439 | | | Residential real estate | | | | | | | | | | Risk Ratings: | | | | | | | | | | Pass | $ | 394,547 | | $ | 114,364 | | $ | 90,566 | | $ | 119,836 | | $ | 118,556 | | $ | 213,950 | | $ | 354,439 | | $ | 1,406,258 | | | Special Mention | — | | — | | — | | 70 | | — | | 1,243 | | 532 | | 1,845 | | | Substandard | — | | 340 | | — | | — | | 58 | | 422 | | 86 | | 906 | | | Substandard Impaired | — | | 149 | | 724 | | 39 | | 4,415 | | 8,507 | | 2,511 | | 16,345 | | | Doubtful | — | | — | | — | | — | | — | | — | | — | | — | | | Total | $ | 394,547 | | $ | 114,853 | | $ | 91,290 | | $ | 119,945 | | $ | 123,029 | | $ | 224,122 | | $ | 357,568 | | $ | 1,425,354 | | | Commercial and financial | | | | | | | | | | Risk Ratings: | | | | | | | | | | Pass | $ | 340,826 | | $ | 180,677 | | $ | 97,072 | | $ | 68,232 | | $ | 39,331 | | $ | 56,053 | | $ | 246,568 | | $ | 1,028,759 | | | Special Mention | 530 | | 15,587 | | — | | 237 | | 251 | | 84 | | 876 | | 17,565 | | | Substandard | — | | 371 | | 2,605 | | 3,594 | | 1,436 | | 3,217 | | 339 | | 11,562 | | | Substandard Impaired | — | | 196 | | 4,561 | | 3,694 | | 1,371 | | 1,520 | | 128 | | 11,470 | | | Doubtful | — | | — | | — | | — | | — | | — | | — | | — | | | Total | $ | 341,356 | | $ | 196,831 | | $ | 104,238 | | $ | 75,757 | | $ | 42,389 | | $ | 60,874 | | $ | 247,911 | | $ | 1,069,356 | | | Consumer | | | | | | | | | | Risk Ratings: | | | | | | | | | | Pass | $ | 45,063 | | $ | 31,342 | | $ | 26,194 | | $ | 17,300 | | $ | 9,979 | | $ | 16,019 | | $ | 25,418 | | $ | 171,315 | | | Special Mention | — | | 24 | | 431 | | 37 | | 167 | | 3 | | 1,199 | | 1,861 | | | Substandard | — | | — | | 18 | | — | | 17 | | — | | 223 | | 258 | | | Substandard Impaired | — | | — | | 92 | | 23 | | 74 | | 118 | | 434 | | 741 | | | Doubtful | — | | — | | — | | — | | — | | — | | — | | — | | | Total | $ | 45,063 | | $ | 31,366 | | $ | 26,735 | | $ | 17,360 | | $ | 10,237 | | $ | 16,140 | | $ | 27,274 | | $ | 174,175 | | | Paycheck Protection Program | | | | | | | | | | Risk Ratings: | | | | | | | | | | Pass | $ | 87,036 | | $ | 4,071 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 91,107 | | | | | | | | | | | | | | | | | | | | | Total | $ | 87,036 | | $ | 4,071 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 91,107 | | | Consolidated | | | | | | | | | | Risk Ratings: | | | | | | | | | | Pass | $ | 1,562,502 | | $ | 716,570 | | $ | 729,697 | | $ | 549,567 | | $ | 408,614 | | $ | 1,125,909 | | $ | 672,256 | | $ | 5,765,115 | | | Special Mention | 530 | | 22,138 | | 6,645 | | 993 | | 925 | | 18,430 | | 2,607 | | 52,268 | | | Substandard | — | | 5,487 | | 5,632 | | 26,800 | | 6,701 | | 22,515 | | 648 | | 67,783 | | | Substandard Impaired | — | | 1,389 | | 9,968 | | 4,288 | | 6,782 | | 14,363 | | 3,073 | | 39,863 | | | Doubtful | — | | — | | — | | — | | — | | — | | — | | — | | | Total | $ | 1,563,032 | | $ | 745,584 | | $ | 751,942 | | $ | 581,648 | | $ | 423,022 | | $ | 1,181,217 | | $ | 678,584 | | $ | 5,925,029 | | |
Troubled Debt Restructured Loans The Company’s TDR concessions granted to certain borrowers generally do not include forgiveness of principal balances, but may include interest rate reductions, an extension of the amortization period and/or converting the loan to interest only for a limited period of time. Loan modifications are not reported in calendar years after modification if the loans were modified at an interest rate equal to the yields of new loan originations with comparable risk and the loans are performing based on the terms of the restructuring agreements. The following table presents loans that were modified in a troubled debt restructuring during the three and nine months ended September 30, 2022 and September 30, 2021: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | 2022 | | 2021 | | (In thousands) | 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 | | Construction and land development | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | Commercial real estate - owner-occupied | — | | | — | | | — | | | — | | | — | | | — | | | Commercial real estate - non owner-occupied | — | | | — | | | — | | | — | | | — | | | — | | | Residential real estate | — | | | — | | | — | | | 1 | | | 152 | | | 152 | | | Commercial and financial | — | | | — | | | — | | | — | | | — | | | — | | | Consumer | — | | | — | | | — | | | — | | | — | | | — | | | Totals | $ | — | | | $ | — | | | $ | — | | | $ | 1 | | | $ | 152 | | | $ | 152 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Nine Months Ended September 30, | | 2022 | | 2021 | | (In thousands) | 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 | | Construction and land development | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | Commercial real estate - owner-occupied | — | | | — | | | — | | | — | | | — | | | — | | | Commercial real estate - non owner-occupied | — | | | — | | | — | | | — | | | — | | | — | | | Residential real estate | 3 | | | 785 | | | 785 | | | 4 | | | 231 | | | 231 | | | Commercial and financial | 2 | | | 54 | | | 54 | | | 1 | | | 142 | | | 142 | | | Consumer | 4 | | | 23 | | | 23 | | | — | | | — | | | — | | | Totals | $ | 9 | | | $ | 862 | | | $ | 862 | | | $ | 5 | | | $ | 373 | | | $ | 373 | |
The TDRs described above resulted in a specific allowance for credit losses of $0.1 million and $0.2 million as of September 30, 2022 and September 30, 2021, respectively. During the nine months ended September 30, 2022, there was one default totaling $2 thousand on a loan that had been modified to a TDR within the preceding twelve months. During the nine months ended September 30, 2021, there were two defaults on loans totaling $0.1 million that had been modified to a TDR within the preceding twelve months. The Company considers a loan to have defaulted when it becomes 90 days or more delinquent under the modified terms, has been transferred to nonaccrual status, is charged off or has been transferred to other real estate owned. For loans measured based on the present value of expected future cash flows, $13 thousand and $9 thousand for the three months ended September 30, 2022, and 2021, respectively, and $33 thousand and $20 thousand for the nine months ended September 30, 2022, and 2021, respectively, was included in interest income and represents the change in present value attributable to the passage of time.
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