| Loans | Loans The table below identifies the Company’s loan portfolio segments and classes. Portfolio Segment Class of Financing Receivable Commercial Owner occupied real estate Non-owner occupied real estate Residential spec homes Development & spec land Commercial and industrial Real estate Residential mortgage Residential construction Mortgage warehouse Mortgage warehouse Consumer Direct installment Indirect installment Home equity Portfolio segment is defined as a level at which an entity develops and documents a systematic methodology to determine its allowance for credit losses. Class of financing receivable is defined as a group of financing receivables determined on the basis of both of the following, 1) risk characteristics of the financing receivable, and 2) an entity’s method for monitoring and assessing credit risk. Generally, the Bank does not move loans from a revolving loan to a term loan other than construction loans. Construction loans are reviewed and rewritten prior to being originated as a term loan. The following table presents total loans outstanding by portfolio class, as of June 30, 2021 and December 31, 2020: June 30, December 31, Commercial Owner occupied real estate $ 475,908 $ 496,306 Non–owner occupied real estate 995,314 999,636 Residential spec homes 9,215 10,070 Development & spec land 23,188 26,372 Commercial and industrial 601,002 659,887 Total commercial 2,104,627 2,192,271 Real estate Residential mortgage 537,259 598,700 Residential construction 22,178 25,586 Mortgage warehouse 205,311 395,626 Total real estate 764,748 1,019,912 Consumer Direct installment 36,189 38,046 Indirect installment 358,161 357,511 Home equity 255,794 259,643 Total consumer 650,144 655,200 Total loans 3,519,519 3,867,383 Allowance for credit losses (55,649) (57,027) Net loans $ 3,463,870 $ 3,810,356 As of June 30, 2021 and December 31, 2020, Federal Paycheck Protection Program (“PPP”) loans totaled approximately $169.4 million and $208.9 million, respectively, and are included with commercial loans. Total loans include net deferred loan fees of $3.2 million and $1.7 million at June 30, 2021 and December 31, 2020, respectively. The risk characteristics of each loan portfolio segment are as follows: Commercial Commercial loans are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected, and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee; however, some short–term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves larger loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets, the general economy or fluctuations in interest rates. The properties securing the Company's commercial real estate portfolio are diverse in terms of property type, and are monitored for concentrations of credit. Management monitors and evaluates commercial real estate loans based on collateral, cash flow and risk grade criteria. As a general rule, the Company avoids financing single purpose projects unless other underwriting factors are present to help mitigate risk. In addition, management tracks the level of owner–occupied commercial real estate loans versus non–owner occupied loans. Real Estate and Consumer With respect to residential loans that are secured by 1–4 family residences and are generally owner occupied, the Company generally establishes a maximum loan–to–value ratio and requires private mortgage insurance if that ratio is exceeded. Home equity loans are typically secured by a subordinate interest in 1–4 family residences, and consumer loans are secured by consumer assets such as automobiles or recreational vehicles. Some consumer loans are unsecured such as small installment loans and certain lines of credit. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment can also be impacted by changes in property values on residential properties. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. Mortgage Warehousing Horizon's mortgage warehouse lending has specific mortgage companies as customers of Horizon Bank. Individual mortgage loans originated by these mortgage companies are funded as a secured borrowing with a pledge of collateral under Horizon's agreement with the mortgage company. Each mortgage loan funded by Horizon undergoes an underwriting review by Horizon to the end investor guidelines and is assigned to Horizon until the loan is sold to the secondary market by the mortgage company. In addition, Horizon takes possession of each original note and forwards such note to the end investor once the mortgage company has sold the loan. At the time a loan is transferred to the secondary market, the mortgage company reacquires the loan under its option within the agreement. Due to the reacquire feature contained in the agreement, the transaction does not qualify as a sale and therefore is accounted for as a secured borrowing with a pledge of collateral pursuant to the agreement with the mortgage company. When the individual loan is sold to the end investor by the mortgage company, the proceeds from the sale of the loan are received by Horizon and used to pay off the loan balance with Horizon along with any accrued interest and any related fees. The remaining balance from the sale is forwarded to the mortgage company. These individual loans typically are sold by the mortgage company within 30 days and are seldom held more than 90 days. Interest income is accrued during this period and collected at the time each loan is sold. Fee income for each loan sold is collected when the loan is sold, and no costs are deferred due to the term between each loan funding and related payoff, which is typically less than 30 days. Based on these agreements with each mortgage company, at any time a mortgage company can reacquire from Horizon its outstanding loan balance on an individual mortgage and regain possession of the original note. Horizon also has the option to request that the mortgage company reacquire an individual mortgage. Should this occur, Horizon would return the original note and reassign the assignment of the mortgage to the mortgage company. Also, in the event that the end investor would not be able to honor the purchase commitment and the mortgage company would not be able to reacquire its loan on an individual mortgage, Horizon would be able to exercise its rights under the agreement. Non–performing Loans The following table presents non–accrual loans, loans past due over 90 days still on accrual, and troubled debt restructurings (“TDRs”) by class of loans: June 30, 2021 Non–accrual Loans Past Non–performing Performing Total Non–accrual Commercial Owner occupied real estate $ 6,847 $ — $ 603 $ — $ 7,450 $ 2,378 Non–owner occupied real estate 1,020 — 303 — 1,323 1,323 Residential spec homes — — — — — — Development & spec land 820 — — — 820 820 Commercial and industrial 694 — 58 — 752 510 Total commercial 9,381 — 964 — 10,345 5,031 Real estate Residential mortgage 5,458 — 924 1,459 7,841 6,263 Residential construction — — — — — — Mortgage warehouse — — — — — — Total real estate 5,458 — 924 1,459 7,841 6,263 Consumer Direct installment 18 — — — 18 18 Indirect installment 828 — — — 828 828 Home equity 2,490 — 406 394 3,290 2,896 Total consumer 3,336 — 406 394 4,136 3,742 Total $ 18,175 $ — $ 2,294 $ 1,853 $ 22,322 $ 15,036 December 31, 2020 Non–accrual Loans Past Non–performing Performing Total Non–accrual Commercial Owner occupied real estate $ 10,581 $ — $ 630 $ 168 $ 11,379 $ 6,305 Non–owner occupied real estate 237 — 330 — 567 567 Residential spec homes — — — — — — Development & spec land 70 — — — 70 70 Commercial and industrial 1,826 — 506 — 2,332 1,847 Total commercial 12,714 — 1,466 168 14,348 8,789 Real estate Residential mortgage 5,674 17 922 1,381 7,994 7,097 Residential construction — — — — — — Mortgage warehouse — — — — — — Total real estate 5,674 17 922 1,381 7,994 7,097 Consumer Direct installment 12 1 — — 13 13 Indirect installment 1,174 120 — — 1,294 1,294 Home equity 2,568 124 222 244 3,158 2,628 Total consumer 3,754 245 222 244 4,465 3,935 Total $ 22,142 $ 262 $ 2,610 $ 1,793 $ 26,807 $ 19,821 There was no interest income recognized on non–accrual loans during the three and six months ended June 30, 2021 and 2020, respectively, while the loans were in non–accrual status. Included in the $18.2 million of non–accrual loans and the $2.3 million of non–performing TDRs at June 30, 2021 were $2.5 million and $902,000, respectively, of loans acquired for which there were accretable yields recognized. The following table presents the payment status by class of loan, excluding non–accrual loans of $18.2 million and non–performing TDRs of $2.3 million at June 30, 2021: June 30, 2021 Current 30–59 Days 60–89 Days 90 Days or Total Total Commercial Owner occupied real estate $ 468,458 $ — $ — $ — $ — $ 468,458 Non–owner occupied real estate 993,914 — 77 — 77 993,991 Residential spec homes 9,215 — — — — 9,215 Development & spec land 22,368 — — — — 22,368 Commercial and industrial 599,623 445 182 — 627 600,250 Total commercial 2,093,578 445 259 — 704 2,094,282 Real estate Residential mortgage 529,780 865 232 — 1,097 530,877 Residential construction 22,178 — — — — 22,178 Mortgage warehouse 205,311 — — — — 205,311 Total real estate 757,269 865 232 — 1,097 758,366 Consumer Direct installment 36,162 2 7 — 9 36,171 Indirect installment 356,485 709 139 — 848 357,333 Home equity 252,220 500 178 — 678 252,898 Total consumer 644,867 1,211 324 — 1,535 646,402 Total $ 3,495,714 $ 2,521 $ 815 $ — $ 3,336 $ 3,499,050 Percentage of total loans 99.90 % 0.07 % 0.02 % 0.00 % 0.10 % 100.00 % The following table presents the payment status by class of loan, excluding non–accrual loans of $22.1 million and non–performing TDRs of $2.6 million at December 31, 2020: December 31, 2020 Current 30–59 Days 60–89 Days 90 Days or Total Total Commercial Owner occupied real estate $ 484,282 $ 683 $ 130 $ — $ 813 $ 485,095 Non–owner occupied real estate 997,816 599 654 — 1,253 999,069 Residential spec homes 10,070 — — — — 10,070 Development & spec land 25,552 — 750 — 750 26,302 Commercial and industrial 657,027 249 279 — 528 657,555 Total commercial 2,174,747 1,531 1,813 — 3,344 2,178,091 Real estate Residential mortgage 590,944 905 238 17 1,160 592,104 Residential construction 25,586 — — — — 25,586 Mortgage warehouse 395,626 — — — — 395,626 Total real estate 1,012,156 905 238 17 1,160 1,013,316 Consumer Direct installment 37,965 69 — — 69 38,034 Indirect installment 354,655 1,356 206 120 1,682 356,337 Home equity 255,908 554 266 125 945 256,853 Total consumer 648,528 1,979 472 245 2,696 651,224 Total $ 3,835,431 $ 4,415 $ 2,523 $ 262 $ 7,200 $ 3,842,631 Percentage of total loans 99.81 % 0.11 % 0.07 % 0.01 % 0.19 % 100.00 % The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified due date. Troubled Debt Restructurings Loans modified as TDRs generally consist of allowing borrowers to defer scheduled principal payments and make interest only payments for a specified period of time at the stated interest rate of the original loan agreement or lower payments due to a modification of the loans' contractual terms. TDRs that continue to accrue interest are individually monitored on a monthly basis and evaluated for impairment annually and transferred to non–accrual status when it is probable that any remaining principal and interest payments due on the loan will not be collected in accordance with the contractual terms of the loan. TDRs that subsequently default are individually evaluated for impairment at the time of default. At June 30, 2021, the types of concessions the Company has made on restructured loans have been temporary rate reductions and/or reductions in monthly payments, and there have been no restructured loans with modified recorded balances. Any modification to a loan that is a concession and is not in the normal course of lending is considered a restructured loan. A restructured loan is returned to accruing status after six consecutive payments but is still reported as a TDR unless the loan bears interest at a market rate. As of June 30, 2021, the Company had $4.1 million in TDRs and $1.9 million were performing according to the restructured terms and $93,000 TDRs were returned to accrual status during 2021. There were no specific reserves allocated to TDRs at June 30, 2021 based on the discounted cash flows or, when appropriate, the fair value of the collateral. These TDRs are exclusive of loans modified under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The following table presents TDRs by class of loan: June 30, 2021 December 31, 2020 Non–accrual Accruing Total Non–accrual Accruing Total Commercial Owner occupied real estate $ 603 $ — $ 603 $ 630 $ 168 $ 798 Non–owner occupied real estate 303 — 303 330 — 330 Residential spec homes — — — — — — Development & spec land — — — — — — Commercial and industrial 58 — 58 506 — 506 Total commercial 964 — 964 1,466 168 1,634 Real estate Residential mortgage 924 1,459 2,383 922 1,381 2,303 Residential construction — — — — — — Mortgage warehouse — — — — — — Total real estate 924 1,459 2,383 922 1,381 2,303 Consumer Direct installment — — — — — — Indirect installment — — — — — — Home equity 406 394 800 222 244 466 Total consumer 406 394 800 222 244 466 Total $ 2,294 $ 1,853 $ 4,147 $ 2,610 $ 1,793 $ 4,403 Loans Modified under the CARES Act The Bank has elected (i) to suspend the requirements under GAAP for loan modifications related to the COVID–19 pandemic that would otherwise be categorized as a TDR; and (ii) to suspend any determination of a loan modified as a result of the effects of COVID–19 pandemic as being a TDR, including impairment for accounting purposes. At June 30, 2021 and December 31, 2020, the Bank modified loans totaling $52.5 million and $126.7 million, respectively, which qualify for treatment under the CARES Act. Collateral Dependent Financial Assets A collateral dependent financial loan relies solely on the operation or sale of the collateral for repayment. In evaluating the overall risk associated with the loan, the Company considers character, overall financial condition and resources, and payment record of the borrower; the prospects for support from any financially responsible guarantors; and the nature and degree of protection provided by the cash flow and value of any underlying collateral. However, as other sources of repayment become inadequate over time, the significance of the collateral's value increases and the loan may become collateral dependent. The table below presents the amortized cost basis and allowance for credit losses (“ACL”) allocated for collateral dependent loans in accordance with ASC 326, which are individually evaluated to determine expected credit losses. June 30, 2021 Real Estate Accounts Receivable/Equipment Other Total ACL Commercial Owner occupied real estate $ 7,341 $ 109 $ — $ 7,450 $ 1,267 Non–owner occupied real estate 1,323 — — 1,323 — Residential spec homes — — — — — Development & spec land 820 — — 820 — Commercial and industrial — 752 — 752 160 Total commercial 9,484 861 — 10,345 1,427 Total collateral dependent loans $ 9,484 $ 861 $ — $ 10,345 $ 1,427 December 31, 2020 Real Estate Accounts Receivable/Equipment Other Total ACL Commercial Owner occupied real estate $ 11,309 $ 114 $ — $ 11,423 $ 1,605 Non–owner occupied real estate 1,032 — — 1,032 — Residential spec homes — — — — — Development & spec land 70 — — 70 — Commercial and industrial 2,245 210 — 2,455 252 Total commercial 14,656 324 — 14,980 1,857 Total collateral dependent loans $ 14,656 $ 324 $ — $ 14,980 $ 1,857 Credit Quality Indicators Horizon Bank's processes for determining credit quality differ slightly depending on whether a new loan or a renewed loan is being underwritten, or whether an existing loan is being re–evaluated for credit quality. The latter usually occurs upon receipt of current financial information or other pertinent data that would trigger a change in the loan grade. • For new and renewed commercial loans, the Bank's Credit Department, which acts independently of the loan officer, assigns the credit quality grade of the loans. Loan grades for loans with an aggregate credit exposure that exceeds the authorities in the respective regions (ranging from $1,000,000 to $3,500,000) are validated by the Loan Committee, which is chaired by the Chief Commercial Banking Officer (“CCBO”). • Commercial loan officers are responsible for reviewing their loan portfolios and reporting any adverse material change to the CCBO, Senior Commercial Credit Officer (“SCCO”) or Loan Committee. When circumstances warrant a change in the credit quality grade, loan officers are required to notify the CCBO, SCCO and the Credit Department of the change in the loan grade. Downgrades are accepted immediately by the CCBO or SCCO, however, lenders must present their factual information to either the Loan Committee, CCBO or SCCO when recommending an upgrade. • The CCBO, or a designee, meets periodically with loan officers to discuss the status of past due loans and classified loans. These meetings are also designed to give the loan officers an opportunity to identify an existing loan that should be downgraded to a classified grade. • Monthly, senior management meets as members of the Watch Committee, which reviews all of the past due, classified, and impaired loans and the relative trends of these assets. This committee also reviews the actions taken by management regarding foreclosure mitigation, loan extensions, troubled debt restructures, other real estate owned and personal property repossessions. The information reviewed in this meeting acts as a precursor for developing management's analysis of the adequacy of the Allowance for Credit Losses. For residential real estate and consumer loans, Horizon uses a grading system based on delinquency. Loans that are 90 days or more past due, on non–accrual, or are classified as a TDR are graded “Substandard.” After being 90 to 120 days delinquent a loan is charged off unless it is well secured and in the process of collection. If the latter case exists, the loan is placed on non–accrual. Occasionally a mortgage loan may be graded as “Special Mention.” When this situation arises, it is because the characteristics of the loan and the borrower fit the definition of a Risk Grade 5 described below, which is normally used for grading commercial loans. Loans not graded Substandard are considered Pass. Horizon Bank employs a nine–grade rating system to determine the credit quality of commercial loans. The first five grades represent acceptable quality, and the last four grades mirror the criticized and classified grades used by the bank regulatory agencies (special mention, substandard, doubtful, and loss). The loan grade definitions are detailed below. Risk Grade 1: Excellent (Pass) Loans secured by liquid collateral, such as certificates of deposit, reputable bank letters of credit, or other cash equivalents or loans to any publicly held company with a current long–term debt rating of A or better and meeting defined key financial metric ranges. Risk Grade 2: Good (Pass) Loans to businesses that have strong financial statements containing an unmodified opinion from a CPA firm and at least three years consecutive years of profits; loans supported by unaudited financial statements containing strong balance sheets, five years consecutive years of profits, a five years satisfactory relationship with the Bank, and key balance sheet and income statement trends that are either stable or positive; loans secured by publicly traded marketable securities with required margins where there is no impediment to liquidation; loans to individuals backed by liquid personal assets and unblemished credit histories; or loans to publicly held companies with current long–term debt ratings of Baa or better and meeting defined key financial metric ranges. Risk Grade 3: Satisfactory (Pass) Loans supported by financial statements (audited or unaudited) that indicate average or slightly below average risk and having some deficiency or vulnerability to changing economic conditions; loans with some weakness but offsetting features of other support are readily available; loans that are meeting the terms of repayment, but which may be susceptible to deterioration if adverse factors are encountered and meeting defined key financial metric ranges. Loans may be graded Satisfactory when there is no recent information on which to base a current risk evaluation and the following conditions apply: • At inception, the loan was properly underwritten, did not possess an unwanted level of credit risk, and the loan met the above criteria for a risk grade of Excellent, Good, or Satisfactory. • At inception, the loan was secured with collateral possessing a loan value adequate to protect the Bank from loss. • The loan has exhibited two • During the period that the loan has been outstanding, there has been no evidence of any credit weakness. Some examples of weakness include slow payment, lack of cooperation by the borrower, breach of loan covenants, or the borrower is in an industry known to be experiencing problems. If any of these credit weaknesses is observed, a lower risk grade may be warranted. Risk Grade 4: Satisfactory/Monitored (Pass) Loans in this category are considered to be of acceptable credit quality, but contain greater credit risk than Satisfactory rated loans and meet defined key financial metric ranges. Borrower displays acceptable liquidity, leverage, and earnings performance within the Bank's minimum underwriting guidelines. The level of risk is acceptable but conditioned on the proper level of loan officer supervision. Loans that normally fall into this grade include acquisition, construction and development loans and income producing properties that have not reached stabilization. Risk Grade 4W: Management Watch (Pass) Loans in this category are considered to be of acceptable quality and meet defined key financial metric ranges, but with above normal risk. Borrower displays potential indicators of weakness in the primary source of repayment resulting in a higher reliance on secondary sources of repayment. Balance sheet may exhibit weak liquidity and/or high leverage. There is inconsistent earnings performance without the ability to sustain adverse economic conditions. Borrower may be operating in a declining industry or the property type, as for a commercial real estate loan, may be high risk or in decline. These loans require an increased level of loan officer supervision and monitoring to assure that any deterioration is addressed in a timely fashion. Commercial construction loans are graded as 4W Management Watch until the projects are completed and stabilized. Risk Grade 5: Special Mention Loans which possess some temporary (normally less than one year) credit deficiency or potential weakness which deserves close attention. Such loans pose an unwarranted financial risk that, if not corrected, could weaken the loan by adversely impacting the future repayment ability of the borrower. The key distinctions of a Special Mention classification are that (1) it is indicative of an unwarranted level of risk and (2) weaknesses are considered “potential,” not “defined,“ impairments to the primary source of repayment. These loans may be to borrowers with adverse trends in financial performance, collateral value and/or marketability, or balance sheet strength and must meet defined key financial metric ranges. Risk Grade 6: Substandard One or more of the following characteristics may be exhibited in loans classified Substandard: • Loans which possess a defined credit weakness. The likelihood that a loan will be paid from the primary source of repayment is uncertain. Financial deterioration is under way and very close attention is warranted to ensure that the loan is collected without loss. • Loans are inadequately protected by the current net worth and paying capacity of the obligor. • The primary source of repayment is gone, and the Bank is forced to rely on a secondary source of repayment, such as collateral liquidation or guarantees. • Loans have a distinct possibility that the Bank will sustain some loss if deficiencies are not corrected. • Unusual courses of action are need to maintain a high probability of repayment. • The borrower is not generating enough cash flow to repay loan principal; however, it continues to make interest payments. • The lender is forced into a subordinated or unsecured position due to flaws in documentation. • Loans have been restructured so that payment schedules, terms, and collateral represent concessions to the borrower when compared to the normal loan terms. • The lender is seriously contemplating foreclosure or legal action due to the apparent deterioration in the loan. • There is a significant deterioration in market conditions to which the borrower is highly vulnerable. • The borrower meets defined key financial metric ranges. Risk Grade 7: Doubtful One or more of the following characteristics may be present in loans classified Doubtful: • Loans have all of the weaknesses of those classified as Substandard; however, based on existing conditions, these weaknesses make full collection of principal highly improbable. • The primary source of repayment is gone, and there is considerable doubt as to the quality of the secondary source of repayment. • The possibility of loss is high but because of certain important pending factors which may strengthen the loan, loss classification is deferred until the exact status of repayment is known. • The borrower meets defined key financial metric ranges. Risk Grade 8: Loss Loans are considered uncollectible and of such little value that continuing to carry them as assets is not feasible. Loans will be classified Loss when it is neither practical nor desirable to defer writing off or reserving all of a portion of a basically worthless asset, even though partial recovery may be possible at some time in the future. The following tables present loans by credit grades and origination year at June 30, 2021. June 30, 2021 2021 2020 2019 2018 2017 Prior Revolving Loans Total Commercial Owner occupied real estate Pass $ 29,263 $ 56,383 $ 56,495 $ 48,945 $ 43,937 $ 153,980 $ 39,681 $ 428,684 Special Mention — — 1,023 1,129 8,852 11,638 — 22,642 Substandard — 1,012 1,005 3,919 1,568 13,275 3,803 24,582 Doubtful — — — — — — — — Total owner occupied real estate $ 29,263 $ 57,395 $ 58,523 $ 53,993 $ 54,357 $ 178,893 $ 43,484 $ 475,908 Non–owner occupied real estate Pass $ 69,815 $ 111,666 $ 109,816 $ 60,224 $ 133,171 $ 267,245 $ 166,989 $ 918,926 Special Mention — 851 1,214 29,438 4,512 12,111 303 48,429 Substandard — — 15,417 1,155 94 8,921 2,372 27,959 Doubtful — — — — — — — — Total non–owner occupied real estate $ 69,815 $ 112,517 $ 126,447 $ 90,817 $ 137,777 $ 288,277 $ 169,664 $ 995,314 Residential spec homes Pass $ 500 $ 368 $ 606 $ — $ — $ 841 $ 6,900 $ 9,215 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total residential spec homes $ 500 $ 368 $ 606 $ — $ — $ 841 $ 6,900 $ 9,215 Development & spec land Pass $ 1,445 $ 563 $ 563 $ 1,480 $ 2,169 $ 12,177 $ 3,247 $ 21,644 Special Mention — — — — — 190 200 390 Substandard — — — — — 404 750 1,154 Doubtful — — — — — — — — Total development & spec land $ 1,445 $ 563 $ 563 $ 1,480 $ 2,169 $ 12,771 $ 4,197 $ 23,188 Commercial & industrial Pass $ 205,256 $ 85,641 $ 55,244 $ 50,770 $ 68,524 $ 63,323 $ 32,927 $ 561,685 Special Mention 3,152 3,455 1,086 2,394 6,996 4,508 910 22,501 Substandard 2,689 570 2,213 3,001 1,717 4,321 2,305 16,816 Doubtful — — — — — — — — Total commercial & industrial $ 211,097 $ 89,666 $ 58,543 $ 56,165 $ 77,237 $ 72,152 $ 36,142 $ 601,002 Total commercial $ 312,120 $ 260,509 $ 244,682 $ 202,455 $ 271,540 $ 552,934 $ 260,387 $ 2,104,627 June 30, 2021 2021 2020 2019 2018 2017 Prior Revolving Loans Total Real estate Residential mortgage Performing $ 52,716 $ 103,892 $ 48,617 $ 61,616 $ 68,983 $ 193,594 $ — $ 529,418 Non–performing — — 377 634 — 6,830 — 7,841 Total residential mortgage $ 52,716 $ 103,892 $ 48,994 $ 62,250 $ 68,983 $ 200,424 $ — $ 537,259 Residential construction Performing $ — $ — $ — $ — $ — $ — $ 22,178 $ 22,178 Non–performing — — — — — — — — Total residential construction $ — $ — $ — $ — $ — $ — $ 22,178 $ 22,178 Mortgage warehouse Performing $ — $ — $ — $ — $ — $ — $ 205,311 $ 205,311 Non–performing — — — — — — — — Total mortgage warehouse $ — $ — $ — $ — $ — $ — $ 205,311 $ 205,311 Total real estate $ 52,716 $ 103,892 $ 48,994 $ 62,250 $ 68,983 $ 200,424 $ 227,489 $ 764,748 June 30, 2021 2021 2020 2019 2018 2017 Prior Revolving Loans Total Consumer Direct installment Performing $ 7,408 $ 9,665 $ 7,494 $ 4,271 $ 4,174 $ 3,151 $ 8 $ 36,171 Non–performing — — — — 15 3 — 18 Total direct installment $ 7,408 $ 9,665 $ 7,494 $ 4,271 $ 4,189 $ 3,154 $ 8 $ 36,189 Indirect installment Performing $ 78,798 $ 113,258 $ 77,097 $ 54,691 $ 25,441 $ 8,048 $ — $ 357,333 Non–performing — 83 177 204 229 135 — 828 Total indirect installment $ 78,798 $ 113,341 $ 77,274 $ 54,895 $ 25,670 $ 8,183 $ — $ 358,161 Home equity Performing $ 30,630 $ 60,376 $ 36,093 $ 28,389 $ 23,158 $ 68,575 $ 5,283 $ 252,504 Non–performing 10 38 10 84 73 1,296 1,779 3,290 Total home equity $ 30,640 $ 60,414 $ 36,103 $ 28,473 $ 23,231 $ 69,871 $ 7,062 $ 255,794 Total consumer $ 116,846 $ 183,420 $ 120,871 $ 87,639 $ 53,090 $ 81,208 $ 7,070 $ 650,144 The following tables present loans by credit grades and origination year at December 31, 2020. December 31, 2020 2020 2019 2018 2017 2016 Prior Revolving Loans Total Commercial Owner occupied real estate Pass $ 57,726 $ 65,558 $ 49,455 $ 49,032 $ 47,480 $ 127,373 $ 40,027 $ 436,651 Special Mention — 1,081 5,928 10,205 4,207 12,787 325 34,533 Substandard 1,021 1,231 4,012 2,504 2,839 9,673 3,842 25,122 Doubtful — — — — — — — — Total owner occupied real estate $ 58,747 $ 67,870 $ 59,395 $ 61,741 $ 54,526 $ 149,833 $ 44,194 $ 496,306 Non–owner occupied real estate Pass $ 115,667 $ 120,023 $ 73,669 $ 133,396 $ 99,674 $ 208,649 $ 166,986 $ 918,064 Special Mention 862 1,236 28,723 1,298 2,548 13,182 4,072 51,921 Substandard — 15,552 1,477 107 6,422 4,521 1,572 29,651 Doubtful — — — — — — — — Total non–owner occupied real estate $ 116,529 $ 136,811 $ 103,869 $ 134,801 $ 108,644 $ 226,352 $ 172,630 $ 999,636 Residential spec homes Pass $ 737 $ 237 $ — $ 298 $ 368 $ 1,177 $ 7,253 $ 10,070 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total residential spec homes $ 737 $ 237 $ — $ 298 $ 368 $ 1,177 $ 7,253 $ 10,070 Development & spec land Pass $ 573 $ 736 $ 1,522 $ 2,461 $ 672 $ 11,971 $ 6,907 $ 24,842 Special Mention — — — — — 274 — 274 Substandard — — — — — 506 750 1,256 Doubtful — — — — — — — — Total development & spec land $ 573 $ 736 $ 1,522 $ 2,461 $ 672 $ 12,751 $ 7,657 $ 26,372 Commercial & industrial Pass $ 253,953 $ 63,772 $ 58,978 $ 88,121 $ 26,044 $ 70,706 $ 30,845 $ 592,419 Special Mention 8,779 1,164 1,088 9,306 1,835 11,870 3,040 37,082 Substandard 4,233 7,079 11,072 1,660 636 3,322 2,384 30,386 Doubtful — — — — — — — — Total commercial & industrial $ 266,965 $ 72,015 $ 71,138 $ 99,087 $ 28,515 $ 85,898 $ 36,269 $ 659,887 Total commercial $ 443,551 $ 277,669 $ 235,924 $ 298,388 $ 192,725 $ 476,011 $ 268,003 $ 2,192,271 December 31, 2020 2020 2019 2018 2017 2016 Prior Revolving Loans Total Real estate Residential mortgage Performing $ 109,487 $ 68 |
