| Loans and Allowance for Loan Losses | As of December 31, 2021 Pass Special Mention Substandard Performing Substandard Non- performing Doubtful Loss Total (Dollars in thousands) Commercial $ 1,356,883 $ 16,201 $ 23,739 $ 4,858 $ — $ — $ 1,401,681 Energy 184,269 73,196 5,246 13,595 2,554 — 278,860 Commercial real estate 1,172,323 86,768 11,782 10,222 — — 1,281,095 Construction and land development 578,758 — — — — — 578,758 Residential and multifamily real estate 593,847 257 6,508 204 — — 600,816 PPP 64,805 — — — — — 64,805 Consumer 63,605 — — — — — 63,605 Total $ 4,014,490 $ 176,422 $ 47,275 $ 28,879 $ 2,554 $ — $ 4,269,620 As of December 31, 2021 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Total Past Due Current Total Loans Receivable Loans >= 90 Days and Accruing (Dollars in thousands) Commercial $ 183 $ 499 $ 1,037 $ 1,719 $ 1,399,962 $ 1,401,681 $ 90 Energy — — 4,644 4,644 274,216 278,860 — Commercial real estate 85 992 — 1,077 1,280,018 1,281,095 — Construction and land development 966 117 — 1,083 577,675 578,758 — Residential and multifamily real estate 437 151 — 588 600,228 600,816 — PPP — — — — 64,805 64,805 — Consumer — 99 — 99 63,506 63,605 — Total $ 1,671 $ 1,858 $ 5,681 $ 9,210 $ 4,260,410 $ 4,269,620 $ 90 As of December 31, (Dollars in thousands) Commercial $ 4,858 Energy 16,148 Commercial real estate 10,222 Construction and land development — Residential and multifamily real estate 204 PPP — Consumer — Total non-accrual loans $ 31,432 As of or For the Year Commercial Energy Commercial Real Estate Construction and Land Development Residential and Multifamily Real Estate PPP Consumer Total (Dollars in thousands) Period end allowance for loan losses allocated to: Individually evaluated for impairment $ 333 $ 2,100 $ 3,164 $ — $ — $ — $ — $ 5,597 Collectively evaluated for impairment $ 20,019 $ 7,129 $ 15,955 $ 3,749 $ 5,598 $ — $ 328 $ 52,778 Ending balance $ 20,352 $ 9,229 $ 19,119 $ 3,749 $ 5,598 $ — $ 328 $ 58,375 Allocated to loans: Individually evaluated for impairment $ 5,739 $ 16,204 $ 31,597 $ — $ 3,387 $ — $ — $ 56,927 Collectively evaluated for impairment $ 1,395,942 $ 262,656 $ 1,249,498 $ 578,758 $ 597,429 $ 64,805 $ 63,605 $ 4,212,693 Ending balance $ 1,401,681 $ 278,860 $ 1,281,095 $ 578,758 $ 600,816 $ 64,805 $ 63,605 $ 4,269,620 As of or For the Year Ended December 31, 2021 Recorded Balance Unpaid Principal Balance Specific Allowance Average Investment Impaired Loans Interest Income Recognized (Dollars in thousands) Loans without a specific valuation Commercial $ 4,659 $ 4,740 $ — $ 7,155 $ 75 Energy 3,509 7,322 — 4,548 5 Commercial real estate 1,729 1,729 — 1,800 18 Construction and land development — — — — — Residential and multifamily real estate 3,387 3,387 — 3,392 86 PPP — — — — — Consumer — — — — — Loans with a specific valuation Commercial 1,080 1,080 333 496 19 Energy 12,695 17,977 2,100 14,117 14 Commercial real estate 29,868 30,854 3,164 28,876 993 Construction and land development — — — — — Residential and multifamily real estate — — — — — PPP — — — — — Consumer — — — — — Total Commercial 5,739 5,820 333 7,651 94 Energy 16,204 25,299 2,100 18,665 19 Commercial real estate 31,597 32,583 3,164 30,676 1,011 Construction and land development — — — — — Residential and multifamily real estate 3,387 3,387 — 3,392 86 PPP — — — — — Consumer — — — — — $ 56,927 $ 67,089 $ 5,597 $ 60,384 $ 1,210 For the Year Ended Commercial and industrial (1) Commercial and Industrial Lines of Credit (1) Energy Commercial Real Estate Construction and Land Development Residential Real Estate (2) Multifamily Real Estate (2) Consumer Total (Dollars in thousands) Allowance for Credit Losses: Beginning balance, prior to adoption of ASU 2016-13 $ 20,352 $ — $ 9,229 $ 19,119 $ 3,749 $ 5,598 $ — $ 328 $ 58,375 Impact of ASU 2016-13 adoption (10,213) 8,866 (39) (186) (83) (2,552) 2,465 (5) (1,747) PCD allowance for credit loss at acquisition 394 129 — 285 98 4 — 6 916 Charge-offs (791) (3,971) (4,651) (1,102) — (217) — (13) (10,745) Recoveries 899 1,730 2,008 2,334 — — — 8 6,979 Provision (release) 1,105 6,461 (2,151) (3,230) 1,263 166 (228) 15 3,401 Day 1 CECL provision expense 526 1,316 — 2,284 310 111 16 33 4,596 Ending balance $ 12,272 $ 14,531 $ 4,396 $ 19,504 $ 5,337 $ 3,110 $ 2,253 $ 372 $ 61,775 Allowance for Credit Losses on Off-Balance Sheet Credit Beginning balance, prior to adoption of ASU 2016-13 $ — $ — $ — $ — $ — $ — $ — $ — $ — Impact of ASU 2016-13 adoption 107 44 265 711 3,914 5 137 1 5,184 Provision (release) 43 8 522 (34) 2,632 (3) (123) 2 3,047 Day 1 CECL provision expense 95 22 — 23 284 33 — — 457 Ending balance $ 245 $ 74 $ 787 $ 700 $ 6,830 $ 35 $ 14 $ 3 $ 8,688 (1) (2) As of December 31, 2022 Loan Segment and Collateral Description Amortized Cost of Collateral Dependent Loans Related Allowance for Credit Losses Amortized Cost of Collateral Dependent Loans with no related Allowance (Dollars in thousands) Commercial and industrial All business assets $ 1,489 $ — $ 1,489 Commercial and industrial lines of credit All business assets 6,492 — 6,492 Energy Oil and natural gas properties 618 — 618 Commercial real estate Commercial real estate properties 92 — 92 Residential real estate Residential real estate properties — — — Multifamily real estate Multifamily real estate properties — — — Consumer Vehicles & other personal assets 39 22 — $ 8,728 $ 22 $ 8,689 As of December 31, 2022 2021 Amount % of Loans Amount % of Loans (Dollars in thousands) Commercial and industrial $ 1,017,678 19 % $ 843,024 20 % Commercial and industrial lines of credit 957,254 18 617,398 15 Energy 173,218 3 278,579 7 Commercial real estate 1,718,947 32 1,278,479 30 Construction and land development 794,788 15 574,852 14 Residential real estate 409,124 8 360,046 8 Multifamily real estate 237,984 4 240,230 6 Consumer 63,736 1 63,605 1 Loans, net of unearned fees 5,372,729 100 % 4,256,213 100 % Less: Allowance for credit losses on loans (1) (61,775) (58,375) Loans, net of the allowance for credit losses on loans $ 5,310,954 $ 4,197,838 As of December 31, 2022 Amortized Cost Basis by Origination Year Amortized Cost Basis 2022 2021 2020 2019 2018 2017 LOC LOC to Term Total (Dollars in thousands) Commercial and industrial Pass $ 465,963 $ 281,166 $ 55,934 $ 50,445 $ 48,595 $ 20,648 $ — $ 19,089 $ 941,840 Special mention 2,531 23,055 14,573 2,951 4,947 86 — 41 48,184 Substandard - accrual 290 677 1,647 1,330 740 299 — 21,166 26,149 Substandard - non-accrual — 104 — 6 1,383 — — — 1,493 Doubtful — — — — — — — — — Loss — — — — — 12 — — 12 Total $ 468,784 $ 305,002 $ 72,154 $ 54,732 $ 55,665 $ 21,045 $ — $ 40,296 $ 1,017,678 Commercial and industrial lines of credit Pass $ — $ — $ — $ — $ — $ — $ 890,109 $ — $ 890,109 Special mention — — — — — — 49,861 — 49,861 Substandard - accrual — — — — — — 10,805 — 10,805 Substandard - non-accrual — — — — — — 6,479 — 6,479 Doubtful — — — — — — — — — Loss — — — — — — — — — Total $ — $ — $ — $ — $ — $ — $ 957,254 $ — $ 957,254 Energy Pass $ 7,585 $ 306 $ 228 $ — $ — $ — $ 162,834 $ 171 $ 171,124 Special mention — — — — — — — — — Substandard - accrual — — — — — — 1,476 — 1,476 Substandard - non-accrual — — — — — — — — — Doubtful — — — — — — 618 — 618 Loss — — — — — — — — — Total $ 7,585 $ 306 $ 228 $ — $ — $ — $ 164,928 $ 171 $ 173,218 Commercial real estate Pass $ 474,901 $ 276,403 $ 156,553 $ 119,643 $ 73,989 $ 84,460 $ 350,732 $ 108,837 $ 1,645,518 Special mention 23,223 6,603 566 1,330 6,558 4,339 2,429 12,285 57,333 Substandard - accrual 10,388 — 547 82 60 1,548 — 992 13,617 Substandard - non-accrual — 2,479 — — — — — — 2,479 Doubtful — — — — — — — — — Loss — — — — — — — — — Total $ 508,512 $ 285,485 $ 157,666 $ 121,055 $ 80,607 $ 90,347 $ 353,161 $ 122,114 $ 1,718,947 Construction and land development Pass $ 346,429 $ 266,557 $ 93,229 $ 19,866 $ 1,497 $ 9,053 $ 49,500 $ — $ 786,131 Special mention — 7,727 — — — — — — 7,727 Substandard - accrual 157 310 463 — — — — — 930 Substandard - non-accrual — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total $ 346,586 $ 274,594 $ 93,692 $ 19,866 $ 1,497 $ 9,053 $ 49,500 $ — $ 794,788 Residential real estate Pass $ 77,416 $ 84,158 $ 121,078 $ 45,265 $ 37,395 $ 34,852 $ 1,649 $ — $ 401,813 Special mention 253 3,272 187 226 — — — — 3,938 Substandard - accrual 34 — 3,148 — — — — — 3,182 Substandard - non-accrual — — — — — — — 191 191 Doubtful — — — — — — — — — Loss — — — — — — — — — Total $ 77,703 $ 87,430 $ 124,413 $ 45,491 $ 37,395 $ 34,852 $ 1,649 $ 191 $ 409,124 Multifamily real estate Pass $ 85,785 $ 26,705 $ 6,915 $ 11,938 $ 2,491 $ 726 $ 86,879 $ 16,509 $ 237,948 Special mention — — — — — — — 36 36 Substandard - accrual — — — — — — — — — Substandard - non-accrual — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total $ 85,785 $ 26,705 $ 6,915 $ 11,938 $ 2,491 $ 726 $ 86,879 $ 16,545 $ 237,984 Consumer Pass $ 7,917 $ 1,347 $ 2,611 $ 265 $ 129 $ 6 $ 51,416 $ — $ 63,691 Special mention — — — — 8 — — — 8 Substandard - accrual — — 32 — 5 — — — 37 Substandard - non-accrual — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total $ 7,917 $ 1,347 $ 2,643 $ 265 $ 142 $ 6 $ 51,416 $ — $ 63,736 Total Pass $ 1,465,996 $ 936,642 $ 436,548 $ 247,422 $ 164,096 $ 149,745 $ 1,593,119 $ 144,606 $ 5,138,174 Special mention 26,007 40,657 15,326 4,507 11,513 4,425 52,290 12,362 167,087 Substandard - accrual 10,869 987 5,837 1,412 805 1,847 12,281 22,158 56,196 Substandard - non-accrual — 2,583 — 6 1,383 — 6,479 191 10,642 Doubtful — — — — — — 618 — 618 Loss — — — — — 12 — — 12 Total $ 1,502,872 $ 980,869 $ 457,711 $ 253,347 $ 177,797 $ 156,029 $ 1,664,787 $ 179,317 $ 5,372,729 As of December 31, 2022 Amortized Cost Basis by Origination Year Amortized Cost Basis 2022 2021 2020 2019 2018 2017 and Prior Revolving loans Revolving loans converted to term loans Total (Dollars in thousands) Commercial and industrial 30-59 days $ 20 $ 4,784 $ — $ — $ — $ 1,049 $ — $ — $ 5,853 60-89 days — 55 — — — — — 430 485 Greater than 90 days — 143 7 6 1,383 12 — — 1,551 Total past due 20 4,982 7 6 1,383 1,061 — 430 7,889 Current 468,764 300,020 72,147 54,726 54,282 19,984 — 39,866 1,009,789 Total $ 468,784 $ 305,002 $ 72,154 $ 54,732 $ 55,665 $ 21,045 $ — $ 40,296 $ 1,017,678 Greater than 90 days and accruing $ — $ 39 $ 7 $ — $ — $ — $ — $ — $ 46 Commercial and industrial lines of credit 30-59 days $ — $ — $ — $ — $ — $ — $ 2,814 $ — $ 2,814 60-89 days — — — — — — 980 — 980 Greater than 90 days — — — — — — 7,063 — 7,063 Total past due — — — — — — 10,857 — 10,857 Current — — — — — — 946,397 — 946,397 Total $ — $ — $ — $ — $ — $ — $ 957,254 $ — $ 957,254 Greater than 90 days and accruing $ — $ — $ — $ — $ — $ — $ 584 $ — $ 584 Energy 30-59 days $ — $ — $ — $ — $ — $ — $ — $ — $ — 60-89 days — — — — — — — — — Greater than 90 days — — — — — — 618 — 618 Total past due — — — — — — 618 — 618 Current 7,585 306 228 — — — 164,310 171 172,600 Total $ 7,585 $ 306 $ 228 $ — $ — $ — $ 164,928 $ 171 $ 173,218 Greater than 90 days and accruing $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate 30-59 days $ — $ — $ — $ 1,180 $ — $ — $ — $ — $ 1,180 60-89 days — — — — — — — — — Greater than 90 days — — — — — — — — — Total past due — — — 1,180 — — — — 1,180 Current 508,512 285,485 157,666 119,875 80,607 90,347 353,161 122,114 1,717,767 Total $ 508,512 $ 285,485 $ 157,666 $ 121,055 $ 80,607 $ 90,347 $ 353,161 $ 122,114 $ 1,718,947 Greater than 90 days and accruing $ — $ — $ — $ — $ — $ — $ — $ — $ — Construction and land development 30-59 days $ 4,293 $ — $ — $ — $ — $ — $ — $ — $ 4,293 60-89 days — — — — — — — — — Greater than 90 days — — — — — — — — — Total past due 4,293 — — — — — — — 4,293 Current 342,293 274,594 93,692 19,866 1,497 9,053 49,500 — 790,495 Total $ 346,586 $ 274,594 $ 93,692 $ 19,866 $ 1,497 $ 9,053 $ 49,500 $ — $ 794,788 Greater than 90 days and accruing $ — $ — $ — $ — $ — $ — $ — $ — $ — Residential real estate 30-59 days $ — $ 3,867 $ — $ 10 $ — $ — $ — $ — $ 3,877 60-89 days — — — — — — — — — Greater than 90 days — 120 — — — — — — 120 Total past due — 3,987 — 10 — — — — 3,997 Current 77,703 83,443 124,413 45,481 37,395 34,852 1,649 191 405,127 Total $ 77,703 $ 87,430 $ 124,413 $ 45,491 $ 37,395 $ 34,852 $ 1,649 $ 191 $ 409,124 Greater than 90 days and accruing $ — $ 120 $ — $ — $ — $ — $ — $ — $ 120 Multifamily real estate 30-59 days $ — $ — $ — $ — $ — $ — $ — $ — $ — 60-89 days — — — — — — — — — Greater than 90 days — — — — — — — — — Total past due — — — — — — — — — Current 85,785 26,705 6,915 11,938 2,491 726 86,879 16,545 237,984 Total $ 85,785 $ 26,705 $ 6,915 $ 11,938 $ 2,491 $ 726 $ 86,879 $ 16,545 $ 237,984 Greater than 90 days and accruing $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer 30-59 days $ — $ — $ — $ — $ — $ — $ 30 $ — $ 30 60-89 days — — 2 — 5 — — — 7 Greater than 90 days — — — — — — — — — Total past due — — 2 — 5 — 30 — 37 Current 7,917 1,347 2,641 265 137 6 51,386 — 63,699 Total $ 7,917 $ 1,347 $ 2,643 $ 265 $ 142 $ 6 $ 51,416 $ — $ 63,736 Greater than 90 days and accruing $ — $ — $ — $ — $ — $ — $ — $ — $ — As of December 31, 2022 Amortized Cost Basis by Origination Year Amortized Cost Basis 2022 2021 2020 2019 2018 2017 and Prior Revolving loans Revolving loans converted to term loans Total Total 30-59 days $ 4,313 $ 8,651 $ — $ 1,190 $ — $ 1,049 $ 2,844 $ — $ 18,047 60-89 days — 55 2 — 5 — 980 430 1,472 Greater than 90 days — 263 7 6 1,383 12 7,681 — 9,352 Total past due 4,313 8,969 9 1,196 1,388 1,061 11,505 430 28,871 Current 1,498,559 971,900 457,702 252,151 176,409 154,968 1,653,282 178,887 5,343,858 Total $ 1,502,872 $ 980,869 $ 457,711 $ 253,347 $ 177,797 $ 156,029 $ 1,664,787 $ 179,317 $ 5,372,729 Greater than 90 days and accruing $ — $ 159 $ 7 $ — $ — $ — $ 584 $ — $ 750 As of December 31, 2022 Amortized Cost Basis by Origination Amortized Cost Basis 2022 2021 2020 2019 2018 2017 and Prior Revolving loans Revolving loans converted to term loans Total Non- accrual Loans Non-accrual Loans with no related Allowance (Dollars in thousands) Commercial and industrial $ — $ 104 $ — $ 6 $ 1,383 $ 12 $ — $ — $ 1,505 $ 1,505 Commercial and industrial lines of credit — — — — — — 6,479 — 6,479 6,479 Energy — — — — — — 618 — 618 618 Commercial real estate — 2,479 — — — — — — 2,479 2,479 Construction and land development — — — — — — — — — — Residential real estate — — — — — — — 191 191 191 Multifamily real estate — — — — — — — — — — Consumer — — — — — — — — — — Total $ — $ 2,583 $ — $ 6 $ 1,383 $ 12 $ 7,097 $ 191 $ 11,272 $ 11,272 Note 4: Categories of loans at December 31, 2022 and 2021 include: As of December 31, 2021, this line represents the allowance for Note 1: Nature of Operations and Summary of Significant Accounting Policies . Accrued interest of $ 23 10 receivable” on the consolidated statements of financial condition The Company aggregates the loan portfolio by similar credit risk characteristics. The loan detail below: ● Commercial and Industrial plant, and equipment purchases and expansions. Loan terms typically require the outstanding loan balance. Repayment is primarily from the cash flow Credit risk is driven by creditworthiness of a borrower and the economic conditions business operations. The category also includes the remaining PPP loans outstanding. These loans were established by the Relief, and Economic Security Act which authorized forgivable loans to small businesses to pay their employees during COVID-19 pandemic. The loans are 100 borrower’s cash flow or SBA repayment approval. ● Commercial and Industrial Lines of Credit – The category includes lines of credit to commercial and industrial customers for working capital needs. The loan terms typically require interest-only require the full balance paid-off at maturity. Lines of credit allow the borrower based on the customer’s cash flow needs. Repayment is primarily from the operating is driven by creditworthiness of a borrower and the economic conditions that operations. ● Energy exploration and production activities, and acquisitions. The loans are repaid primarily natural gas to cash. Credit risk is driven by creditworthiness of a borrower and cash flow stability from business operations. Energy loans are typically collateralized reserves. ● Commercial Real Estate these loans is generally dependent on the successful operations of the property on the property securing the loan. These are viewed primarily as cash flow loans and secondarily estate. Credit risk may be impacted by the creditworthiness of a borrower, borrower’s market areas. ● Construction and Land Development estimated value of the completed project and include independent appraisal reviews developers and property owners. Sources of repayment include permanent loan commitment from the Company until permanent financing is obtained. These loans estate loans due to their ultimate repayment being sensitive to interest rate availability of long-term financing. Credit risk may be impacted by the local economies in the borrower’s market areas. ● Residential Real Estate - The category includes loans that are generally secured by owner-occupied Repayment of these loans is primarily dependent on the personal income and these loans can be impacted by economic conditions within or outside property values or a borrower’s personal income. ● Multifamily Real Estate - The category includes loans that are generally secured by multifamily properties. these loans is primarily dependent on occupancy rates and the personal income of be impacted by economic conditions within or outside the borrower’s or the tenants’ personal income. ● Consumer - The category includes revolving lines of credit and various term loans such as automobile other personal purposes. Repayment is primarily dependent on the personal Credit risk is driven by consumer economic factors (such as unemployment borrower’s market area) and the creditworthiness of a borrower. Allowance for Credit Losses The Company established a CECL committee that meets at least quarterly to oversee the ACL methodology. The committee estimates the ACL using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The ACL represents the Company’s current estimate of lifetime credit losses inherent in the loan portfolio at the statement of financial condition date. The ACL is adjusted for expected prepayments when appropriate and excludes expected extensions, renewals, and modifications. The ACL is the sum of three components: (i) asset specific / individual loan reserves; (ii) quantitative (formulaic or pooled) reserves; and (iii) qualitative (judgmental) reserves. Asset Specific - individually evaluated. Individual reserves are calculated for loans rated doubtful or loss that are greater than a defined dollar threshold. In specific loans may be based on collateral, for collateral-dependent loans, or on flow, market sentiment, and guarantor support. Quantitative - The Company used the cohort method, which identifies and captures the balance of a pool of loans with similar characteristics as of a particular time to form a cohort. For example, the outstanding industrial lines of credit loan segments as of quarter-end are considered of loans or until the pool is exhausted. The Company used a lookback period of approximately By using the historical data timeframe, the Company can establish a historical loss factor with qualitative and forecast factors Qualitative primarily uses the following qualitative factors: ◾ The nature and volume of changes in risk ratings; ◾ The volume and severity of past due loans; ◾ The volume of non-accrual loans; ◾ The nature and volume of the loan portfolio, including the existence, growth, and ◾ Changes in the Institute of Supply Management’s Purchasing Manager Indices ◾ Changes in collateral values; ◾ Changes in lending policies, procedures, and quality of loan reviews; ◾ Changes in lending staff; and ◾ Changes in competition, legal and regulatory environments In addition to the current condition qualitative adjustments, the Company uses the adjust the ACL based on forward looking guidance. The Federal Reserve’s unemployment forecast extends three-years and is eventually reverted to the mean of six percent by year 10. Internal Credit Risk Ratings The Company uses a weighted average risk rating factor to adjust the historical incorporate the criteria utilized by regulatory authorities to describe criticized the regulatory “Pass” category. Risk ratings are established for loans at origination assigned to a loan reflects the risks posed by the borrower’s expected performance to determine a risk rating include, but are not limited to, cash flow adequacy, follows: Loan Grades • condition or the credit is currently protected with sales trends remaining flat industry norms and Company policies. Debt is programmed and timely • balance sheet that has not reached a point where repayment is jeopardized. uncorrected, the potential weaknesses may result in deterioration of credit or lien position at a future date. These credits are not adversely classified and do not expose to warrant adverse classification. • Substandard (risk rating 6) inadequately protected by the current worth and paying capacity of exists that the Company will sustain some loss if deficiencies are not corrected. amount of substandard assets, does not have to exist in individual assets classified substandard. performing and non-performing loans and are broken out in the table below. • Doubtful (risk rating 7) - Credits which exhibit weaknesses inherent in a substandard credit with the added these weaknesses make collection or liquidation in full highly questionable or and values. Because of reasonably specific pending factors, which may classification as a loss is deferred until its more exact status may be determined. • Loss (risk rating 8) - Credits which are considered uncollectible or of such little value that their continuance asset is not warranted. The following tables present the credit risk profile of the Company’s loan portfolio segments: The following tables present the Company’s loan portfolio aging analysis of 2022: Non-accrual Loan Analysis Non-accrual loans are loans for which the Company does not record interest at the time the loan is 90 days past due unless the credit is well secured and in process of collection. terms of the loan. In all cases, loans are placed on non-accrual or charged off at an earlier date, considered doubtful. Loans are returned to accrual status when all the principal and future payments are reasonably assured. The following table presents the Company’s December 31, 2022: Interest income recognized on non-accrual loans was $ 1.5 Allowance for Credit Losses The following table presents the activity in the allowance for credit losses and exposures by portfolio segment for the year ended December 31, 2022: Credit quality indicators improved meaningfully during 2022 which influenced to the ACL estimate. and industrial and commercial and industrial line of credit loans. Collateral Dependent Loans: Collateral dependent loans are loans for which the repayment is expected to be provided of the collateral and the borrower is experiencing financial difficulty. The following considered collateral dependent by loan segment and collateral type as of Troubled Debt Restructurings TDRs are those extended to borrowers who are experiencing financial loan modifications as a result of the COVID-19 pandemic. The modification or deferment of monthly payment, or reduction of the stated interest rate. For the years ended December 31, 2022 and 2021, no 4.8 guidance. The outstanding balance of TDRs was $ 30.5 40.4 Disclosures under Previously Applicable The following disclosures are presented under previously applicable GAAP. The description loan rating categories is as described above. The following table presents the credit internal rating category and portfolio segment as of December 31, 2021: The following table presents the Company’s loan portfolio aging analysis of the 2021: The following table presents the Company’s The following table presents the allowance for loan losses by portfolio segment impairment methodology: A loan is considered impaired when based on current information and all amounts due from the borrower in accordance with the contractual terms also include loans modified in TDRs where concessions have been granted concessions is to maximize collection. The following table presents loans individually Allowance for Credit Losses on Off-Balance Sheet Credit Exposures The Company estimates expected credit losses for off-balance sheet credit cancellable by the Company. The ACL on off-balance sheet credit exposures is adjusted as a provision for credit loss expense. The estimate is calculated for each loan segment and includes consideration of the likelihood losses on commitments expected to be funded over its estimated life. For Company uses the reserve rate established for the related loan pools. The $ 9 exposures The following categories of off-balance sheet credit exposures have been Loan commitments – include revolving lines of credit, non-revolving lines Risks inherent to revolving lines of credit often are related to the susceptibility of unpredictable cash flow or financial troubles, thus leading to payment of credit is the diversion of funds for other expenditures. Letters of credit – are primarily established to provide assurance to the beneficiary arising out of a separate transaction between the beneficiary and applicant. right to draw on the letter of credit. |
