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Loans
 12 Months Ended
Dec. 31, 2022
Receivables [Abstract]  
Loans Loans
Loans 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:
 December 31, 2022
(In thousands)Portfolio LoansAcquired Non-PCD LoansPCD LoansTotal
Construction and land development$364,900 $201,333 $21,100 $587,332 
Commercial real estate - owner occupied995,154 451,202 31,946 1,478,302 
Commercial real estate - non-owner occupied1,695,411 767,138 127,225 2,589,774 
Residential real estate1,558,643 271,378 19,482 1,849,503 
Commercial and financial 1,151,273 182,124 15,238 1,348,636 
Consumer177,338 89,458 19,791 286,587 
Paycheck Protection Program
1,474 3,116 — 4,590 
    Totals$5,944,193 $1,965,749 $234,782 $8,144,724 
 December 31, 2021
(In thousands)Portfolio LoansAcquired Non-PCD LoansPCD LoansTotal
Construction and land development$199,341 $31,438 $45 $230,824 
Commercial real estate - owner occupied983,517 186,812 27,445 1,197,774 
Commercial real estate - non-owner occupied1,278,180 382,554 75,705 1,736,439 
Residential real estate1,261,306 156,957 7,091 1,425,354 
Commercial and financial 968,318 84,395 16,643 1,069,356 
Consumer169,507 4,658 10 174,175 
Paycheck Protection Program69,503 21,604 — 91,107 
    Totals$4,929,672 $868,418 $126,939 $5,925,029 
The amortized cost basis of loans at December 31, 2022 and 2021 included net deferred costs of $35.1 million and $28.6 million, respectively. At December 31, 2022, the remaining fair value adjustments on acquired loans were $97.7 million, or 4.3% 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 $28.2 million and $14.7 million at December 31, 2022 and 2021, respectively.
Loans to directors and executive officers totaled $0.4 million and $0.6 million at December 31, 2022 and 2021, respectively. Two new loans were originated to officers or directors in 2022.
The following table presents the status of net loan balances as of December 31, 2022 and December 31, 2021.  
December 31, 2022
(In thousands)CurrentAccruing
30-59 Days Past Due		Accruing
60-89 Days Past Due		Accruing
Greater
Than 90 Days		NonaccrualTotal
Portfolio Loans      
Construction and land development$364,841 $— $— $— $59 $364,900 
Commercial real estate - owner occupied993,690 — 67 440 957 995,154 
Commercial real estate - non-owner occupied1,695,381 — — — 30 1,695,411 
Residential real estate1,550,040 1,172 147 — 7,284 1,558,643 
Commercial and financial1,142,536 1,032 476 — 7,229 1,151,273 
Consumer176,444 550 252 1 91 177,338 
 Paycheck Protection Program1,099 33 — 342 — 1,474 
Total Portfolio Loans$5,924,031 $2,787 $942 $783 $15,650 $5,944,193 
Acquired Non-PCD Loans
Construction and land development$201,263 $— $— $— $70 $201,333 
Commercial real estate - owner occupied450,109 796 297 — — 451,202 
Commercial real estate - non-owner occupied765,633 162 — — 1,343 767,138 
Residential real estate270,215 577 — — 586 271,378 
Commercial and financial180,837 790 87 — 410 182,124 
Consumer87,317 779 616 525 221 89,458 
 Paycheck Protection Program3,116 — — — — 3,116 
Total Acquired Non-PCD Loans$1,958,490 $3,104 $1,000 $525 $2,630 $1,965,749 
PCD Loans
Construction and land development$20,680 $— $— $— $420 $21,100 
Commercial real estate - owner occupied30,517 23 23 — 1,383 31,946 
Commercial real estate - non-owner occupied124,115 — — — 3,110 127,225 
Residential real estate17,885 10 — — 1,587 19,482 
Commercial and financial11,201 4 — — 4,033 15,238 
Consumer17,884 1,001 336 540 30 19,791 
Total PCD Loans$222,282 $1,038 $359 $540 $10,563 $234,782 
Total Loans$8,104,803 $6,929 $2,301 $1,848 $28,843 $8,144,724 
December 31, 2021
(In thousands)CurrentAccruing
30-59 Days Past Due		Accruing
60-89 Days Past Due		Accruing
Greater
Than 90 Days		NonaccrualTotal
Portfolio Loans      
Construction and land development$199,087 $— $— $— $254 $199,341 
Commercial real estate - owner occupied982,804 — — — 713 983,517 
Commercial real estate - non-owner occupied1,276,582 — — — 1,598 1,278,180 
Residential real estate1,248,160 3,457 143 — 9,546 1,261,306 
Commercial and financial963,828 851 41 — 3,598 968,318 
Consumer168,791 565 23 15 113 169,507 
Paycheck Protection Program69,434 — — 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 occupied186,652 — 160 — — 186,812 
Commercial real estate - non-owner occupied381,510 — — — 1,044 382,554 
Residential real estate154,981 182 — — 1,794 156,957 
Commercial and financial84,180 — 40 — 175 84,395 
Consumer4,082 135 — — 441 4,658 
Paycheck Protection Program21,567 — — 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 occupied24,192 — — — 3,253 27,445 
Commercial real estate - non-owner occupied72,442 — — — 3,263 75,705 
Residential real estate5,386 — — — 1,705 7,091 
Commercial and financial13,547 — — — 3,096 16,643 
Consumer10 — — — — 10 
Total PCD Loans$115,617 $— $— $— $11,322 $126,939 
Total Loans$5,888,713 $5,190 $407 $121 $30,598 $5,925,029 
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 $1.6 million, $1.2 million, and $0.9 million in interest income on nonaccrual loans during the years ended December 31, 2022, 2021, and 2020, respectively.
The following tables present net balances of loans on nonaccrual status and the related allowance for credit losses, if any, as of:
December 31, 2022
(In thousands)Nonaccrual Loans With No Related AllowanceNonaccrual Loans With an AllowanceTotal Nonaccrual LoansAllowance for Credit Losses
Construction and land development$615 $— $615 $— 
Commercial real estate - owner-occupied957 1,641 2,597 41 
Commercial real estate - non-owner occupied3,347 837 4,184 230 
Residential real estate8,072 1,036 9,109 58 
Commercial and financial4,724 6,891 11,615 2,319 
Consumer40 683 723 257 
Totals$17,755 $11,088 $28,843 $2,905 
December 31, 2021
(In thousands)Nonaccrual Loans With No Related AllowanceNonaccrual Loans With an AllowanceTotal Nonaccrual LoansAllowance for Credit Losses
Construction and land development$37 $222 $259 $92 
Commercial real estate - owner-occupied2,976 990 3,966 419 
Commercial real estate - non-owner occupied4,490 1,415 5,905 27 
Residential real estate12,358 687 13,045 357 
Commercial and financial2,676 4,193 6,869 2,384 
Consumer29 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)December 31, 2022December 31, 2021
Construction and land development$59 $271 
Commercial real estate - owner-occupied2,733 4,706 
Commercial real estate - non-owner occupied1,698 4,923 
Residential real estate11,333 16,334 
Commercial and financial10,448 8,741 
Consumer426 741 
Totals$26,697 $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. Some portion of 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: 
 December 31, 2022
(In thousands)20222021202020192018PriorRevolvingTotal
Construction and Land Development   
Risk Ratings:
Pass$223,204 $209,738 $18,239 $24,600 $12,783 $19,022 $50,960 $558,546 
Special Mention14,523 452 — 3,153 — — 15 18,143 
Substandard— 9,227 — — 959 — — 10,186 
Substandard Impaired— 52 — — — 405 — 457 
Doubtful— — — — — — — — 
Total$237,727 $219,469 $18,239 $27,753 $13,742 $19,427 $50,975 $587,332 
Commercial real estate - owner occupied
Risk Ratings:
Pass$215,453 $251,638 $180,081 $185,286 $121,568 $467,963 $32,253 $1,454,242 
Special Mention694 — 2,363 4,403 2,548 2,869 — 12,877 
Substandard— — 667 2,625 573 4,444 — 8,309 
Substandard Impaired— — — 311 294 2,269 — 2,874 
Doubtful— — — — — — — — 
Total$216,147 $251,638 $183,111 $192,625 $124,983 $477,545 $32,253 $1,478,302 
Commercial real estate - non-owner occupied
Risk Ratings:
Pass$593,364 $530,462 $231,693 $331,173 $228,077 $575,656 $35,326 $2,525,751 
Special Mention— 16,257 735 5,438 — 4,975 — 27,405 
Substandard— 192 19,315 — 5,515 7,412 — 32,434 
Substandard Impaired— — 1,044 1,849 30 1,261 — 4,184 
Doubtful— — — — — — — — 
Total$593,364 $546,911 $252,787 $338,460 $233,622 $589,304 $35,326 $2,589,774 
Residential real estate
Risk Ratings:
Pass$270,054 $552,950 $121,879 $77,100 $97,900 $292,867 $423,764 $1,836,514 
Special Mention— — 50 — 25 269 884 1,228 
Substandard— — — — — 343 85 428 
Substandard Impaired— — 133 32 83 9,515 1,570 11,333 
Doubtful— — — — — — — — 
Total$270,054 $552,950 $122,062 $77,132 $98,008 $302,994 $426,303 $1,849,503 
Commercial and financial
Risk Ratings:
Pass$359,833 $320,307 $140,450 $77,562 $57,924 $58,648 $292,818 $1,307,542 
Special Mention1,244 423 106 474 195 259 2,998 5,699 
Substandard— 67 942 6,304 1,603 1,683 13,114 23,713 
Substandard Impaired5 58 5,109 147 3,642 2,545 176 11,682 
Doubtful— — — — — — — — 
Total$361,082 $320,855 $146,607 $84,487 $63,364 $63,135 $309,106 $1,348,636 
 December 31, 2022
(In thousands)20222021202020192018PriorRevolvingTotal
Consumer
Risk Ratings:
Pass$93,012 $77,889 $27,982 $28,772 $11,690 $16,480 $29,725 $285,550 
Special Mention— — — 250 2 134 30 416 
Substandard— — 11 — — 191 — 202 
Substandard Impaired— — 18 55 36 103 207 419 
Doubtful— — — — — — — — 
Total$93,012 $77,889 $28,011 $29,077 $11,728 $16,908 $29,962 $286,587 
Paycheck Protection Program
Risk Ratings:
Pass$— $2,708 $1,882 $— $— $— $— $4,590 
Total$— $2,708 $1,882 $— $— $— $— $4,590 
Consolidated
Risk Ratings:
Pass$1,754,920 $1,945,692 $722,206 $724,493 $529,942 $1,430,636 $864,846 $7,972,735 
Special Mention16,461 17,132 3,254 13,718 2,770 8,506 3,927 65,768 
Substandard— 9,486 20,935 8,929 8,650 14,073 13,199 75,272 
Substandard Impaired5 110 6,304 2,394 4,085 16,098 1,953 30,949 
Doubtful— — — — — — — — 
Total$1,771,386 $1,972,420 $752,699 $749,534 $545,447 $1,469,313 $883,925 $8,144,724 

 December 31, 2021
(In thousands)20202019201820172016PriorRevolvingTotal
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 
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 Mention530 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 Mention530 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— 5,460 9,968 4,288 6,782 14,363 3,073 43,934 
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 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. The Company typically does not provide forgiveness of principal as a concession. 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.
There were nine loans totaling $0.9 million modified in TDRs in 2022, 12 loans totaling $0.8 million in 2021, and 10 loans totaling $0.7 million in 2020. The TDRs resulted in a specific allowance for credit losses of $0.2 million as of December 31, 2022 and 2021. During the year ended December 31, 2022, there were three defaults totaling $41 thousand on loans that had been modified in TDRs within the preceding twelve months compared to three defaults totaling $0.2 million in 2021. 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, $37 thousand, $16 thousand and $0.1 million for the years ended December 31, 2022, 2021, and 2020, respectively, was included in interest income and represents the change in present value attributable to the passage of time.