Credit Quality | NOTE E—CREDIT QUALITY Management monitors the credit quality of its loans and leases on an ongoing basis. Measurement of delinquency and past due status are based on the contractual terms of each loan. United considers a loan to be past due when it is 30 days or more past its contractual payment due date. For all loan classes, past due loans and leases are reviewed on a monthly basis to identify loans and leases for nonaccrual status. Generally, when collection in full of the principal and interest is jeopardized, the loan is placed on nonaccrual status. The accrual of interest income on commercial and most consumer loans generally is discontinued when a loan becomes 90 to 120 days past due as to principal or interest. However, regardless of delinquency status, if a loan is fully secured and in the process of collection and resolution of collection is expected in the near term (generally less than 90 days), then the loan will not be placed on nonaccrual status. When interest accruals are discontinued, unpaid interest recognized in income in the current year is reversed, and unpaid interest accrued in prior years is charged to the allowance for credit losses. United’s method of income recognition for loans and leases that are classified as nonaccrual is to recognize interest income on a cash basis or apply the cash receipt to principal when the ultimate collectibility of principal is in doubt. Nonaccrual loans and leases will not normally be returned to accrual status unless all past due principal and interest has been paid and the borrower has evidenced their ability to meet the contractual provisions of the note. Generally, a loan is categorized as a TDR if a concession is granted and there is deterioration in the financial condition of the borrower. The portfolio of TDR loans is monitored monthly. In response to the coronavirus (“COVID-19”) COVID-19 under the CARES Act, these loan modifications were exempt by law from classification as a TDR as defined by GAAP. As of December 31, 2022, United no longer has any eligible loan modifications in deferral under section 4013, “Temporary Relief from Troubled Debt Restructurings,” of the CARES Act as compared to 188 eligible loan modifications in deferral on $18,039 ,000 As of December 31, 2022, United had TDRs of $19,388 ,000 ,000 ,000 ,000 30-89 ,000 ,000 ,000 The following tables sets forth the balances of TDRs at December 31, 2022 and December 31, 2021 and the reasons for modification: (In thousands) Reason for modification December 31, 2022 December 31, 2021 Interest rate reduction $ 736 $ 3,163 Interest rate reduction and change in terms 792 1,412 Forgiveness of principal 0 0 Concession of principal and term 15 19 Extended maturity 4,616 4,831 Transfer of asset 0 5,407 Change in terms 13,229 21,024 Total $ 19,388 $ 35,856 The following table sets forth United’s troubled debt restructurings that have been restructured during the year ended December 31, 2022 and 2021, segregated by class of loans: Troubled Debt Restructurings For the Year Ended December 31, 2022 December 31, 2021 (Dollars in thousands) Number of Pre- Modification Post- Number of Pre- Modification Post- Commercial real estate: Owner-occupied 2 $ 2,945 $ 2,817 5 $ 2,155 $ 2,293 Nonowner-occupied 0 0 0 3 6,362 6,130 Other commercial 1 132 0 2 328 328 Residential real estate 0 0 0 9 1,660 1,651 Construction & land development 0 0 0 0 0 0 Consumer: Bankcard 0 0 0 0 0 0 Other consumer 0 0 0 0 0 0 Total 3 $ 3,077 $ 2,817 19 $ 10,505 $ 10,402 The following table sets forth United’s troubled debt restructurings, based on their post-modification outstanding recorded balance, that have been restructured during the year ended December 31, 2022 and 2021, segregated by the reason for modification: Year Ended (In thousands) Reason for modification December 31, December 31, Interest rate reduction $ 143 $ 155 Interest rate reduction and change in terms 0 1,412 Forgiveness of principal 0 0 Year Ended (In thousands) Reason for modification December 31, December 31, Concession of principal and term 0 0 Transfer of asset 0 5,407 Extended maturity 0 2,754 Change in terms 2,674 674 Total $ 2,817 $ 10,402 The loans and leases were evaluated individually for allocation within United’s allowance for loan losses. The modifications had an immaterial impact on the financial condition and results of operations for United. The following table presents troubled debt restructurings, by class of loan, that had charge-offs during the year ended December 31, 2022 and 2021. These loans were restructured during the twelve months ended December 31, 2022 and 2021 and subsequently defaulted, resulting in principal charge-offs during the year of 2022 and 2021. The recorded investment amounts presented were as of the December 31, 2022 and 2021 balance sheet dates. Year Ended December 31, 2022 Year Ended December 31, 2021 (In thousands) Number of Recorded Number of Recorded Troubled Debt Restructurings Commercial real estate: Owner-occupied 0 $ 0 0 $ 0 Nonowner-occupied 0 0 0 0 Other commercial 1 96 0 0 Residential real estate 1 0 1 0 Construction & land development 0 0 2 0 Consumer: Bankcard 0 0 0 0 Other consumer 0 0 0 0 Total 2 $ 96 3 $ 0 The following table sets forth United’s age analysis of its past due loans and leases, segregated by class of loans and leases: Age Analysis of Past Due Loans and Leases As of December 31, 2022 (In thousands) 30-89 90 Days or Past Due Total Past Current & Total Financing 90 Days or Past Due & Commercial real estate: Owner-occupied $ 5,643 $ 12,368 $ 18,011 $ 1,706,916 $ 1,724,927 $ 4,023 Nonowner-occupied 9,996 8,916 18,912 6,268,062 6,286,974 0 Other commercial 13,466 5,338 18,804 3,593,764 3,612,568 2,946 Residential real estate 25,315 17,735 43,050 4,619,861 4,662,911 7,342 Construction & land development 3,060 475 3,535 2,923,436 2,926,971 0 Consumer: Bankcard 63 109 172 9,101 9,273 109 Other consumer 33,993 4,570 38,563 1,317,976 1,356,539 4,220 Total $ 91,536 $ 49,511 $ 141,047 $ 20,439,116 $ 20,580,163 $ 18,640 Age Analysis of Past Due Loans and Leases As of December 31, 2021 (In thousands) 30-89 Days Past Due 90 Days or Past Due Total Past Due Current & Total Financing 90 Days or Past Due & Commercial real estate: Owner-occupied $ 7,522 $ 13,325 $ 20,847 $ 1,712,329 $ 1,733,176 $ 611 Nonowner-occupied 5,791 18,829 24,620 5,932,668 5,957,288 545 Other commercial 21,444 15,883 37,327 3,425,034 3,462,361 6,569 Residential real estate 19,488 23,495 42,983 3,648,577 3,691,560 8,241 Construction & land development 6,599 3,096 9,695 2,004,470 2,014,165 383 Consumer: Bankcard 100 187 287 8,626 8,913 187 Other consumer 17,264 2,615 19,879 1,163,965 1,183,844 2,445 Total $ 78,208 $ 77,430 $ 155,638 $ 17,895,669 $ 18,051,307 $ 18,981 The following table sets forth United’s nonaccrual loans and leases, segregated by class of loans and leases: At December 31, 2022 At December 31, 2021 (In thousands) Nonaccruals With No Nonaccruals With No Commercial Real Estate: Owner-occupied $ 8,345 $ 8,345 $ 12,714 $ 12,714 Nonowner-occupied 8,916 8,916 18,284 18,284 Other Commercial 2,392 2,392 9,314 8,261 Residential Real Estate 10,393 8,564 15,254 14,298 Construction 475 475 2,713 2,713 Consumer: Bankcard 0 0 0 0 Other consumer 350 350 170 170 Total $ 30,871 $ 29,042 $ 58,449 $ 56,440 Interest income recognized on nonaccrual loans was insignificant during the year ended December 31, 2022 and 2021. For the adoption of ASC Topic 326, United elected the practical expedient to measure expected credit losses on collateral dependent loans and leases based on the difference between the loan’s amortized cost and the collateral’s fair value, adjusted for selling costs. The following table presents the amortized cost basis of collateral-dependent loans and leases in which repayment is expected to be derived substantially through the operation or sale of the collateral and where the borrower is experiencing financial difficulty, by class of loans and leases as of December 31, 2022 and December 31, 2021: Collateral Dependent Loans and Leases At December 31, 2022 (In thousands) Residential Business Land Commercial Other Total Commercial real estate: Owner-occupied $ 46 $ 22 $ 0 $ 15,718 $ 9,635 $ 25,421 Nonowner-occupied 3,245 0 0 2,784 7,619 13,649 Other commercial 0 5,444 0 0 140 5,584 Residential real estate 11,858 0 0 0 0 11,858 Construction & land development 14 0 1,312 0 738 2,063 Consumer: Bankcard 0 0 0 0 0 0 Other consumer 0 0 0 0 0 0 Total $ 15,163 $ 5,466 $ 1,312 $ 18,502 $ 18,132 $ 58,575 Collateral Dependent Loans and Leases At December 31, 2021 (In thousands) Residential Business Land Commercial Other Total Commercial real estate: Owner-occupied $ 0 $ 38 $ 0 $ 9,775 $ 11,223 $ 21,036 Nonowner-occupied 7,085 0 703 8,665 52,299 68,752 Other commercial 2,093 15,225 0 0 732 18,050 Residential real estate 16,749 0 0 0 0 16,749 Construction & land development 0 0 4,770 0 1,103 5,873 Consumer: Bankcard 0 0 0 0 0 0 Other consumer 0 0 0 0 0 0 Total $ 25,927 $ 15,263 $ 5,473 $ 18,440 $ 65,357 $ 130,460 United categorizes loans and leases into risk categories based on relevant information about the ability of borrowers to service their debt: current financial information, historical payment experience, credit documentation, underlying collateral (if any), public information and current economic trends, among other factors. United uses the following definitions for risk ratings: · Pass · Special Mention · Substandard · Doubtful For United’s loans with a corporate credit exposure, United analyzes loans individually to classify the loans as to credit risk. Review and analysis of criticized (special mention-rated loans in the amount of $1,000,000 or greater) and classified (substandard-rated and worse in the amount of $500,000 and greater) loans is completed once per quarter. Review of notes with committed exposure of $2,000,000 or greater is completed at least annually. For loans with a consumer credit exposure, United internally assigns a grade based upon an individual loan’s delinquency status. United reviews and updates, as necessary, these grades on a quarterly basis. Special mention loans, with a corporate credit exposure, have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loans or in the Company’s credit position at some future date. Borrowers may be experiencing adverse operating trends (declining revenues or margins) or an ill proportioned balance sheet (e.g., increasing inventory without an increase in sales, high leverage, tight liquidity). Adverse economic or market conditions, such as interest rate increases or the entry of a new competitor, may also support a special mention rating. Nonfinancial reasons for rating a credit exposure special mention include management problems, pending litigation, an ineffective loan agreement or other material structural weakness, and any other significant deviation from prudent lending practices. For loans with a consumer credit exposure, loans that are past due 30-89 A substandard loan with a corporate credit exposure is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt by the borrower. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. They require more intensive supervision by management. Substandard loans are generally characterized by current or expected unprofitable operations, inadequate debt service coverage, inadequate liquidity, or marginal capitalization. Repayment may depend on collateral or other credit risk mitigants. For some substandard loans, the likelihood of full collection of interest and principal may be in doubt and thus, placed on nonaccrual. For loans with a consumer credit exposure, loans that are 90 days or more past due or that have been placed on nonaccrual are considered substandard. A loan with corporate credit exposure is classified as doubtful if it has all the weaknesses inherent in one classified as substandard with the added characteristic that the weaknesses make collection in full, on the basis of currently existing facts, conditions, and values, highly questionable. A doubtful loan has a high probability of total or substantial loss, but because of specific pending events that may strengthen the loan, its classification as loss is deferred. Doubtful borrowers are usually in default, lack adequate liquidity or capital, and lack the resources necessary to remain an operating entity. Pending events can include mergers, acquisitions, liquidations, capital injections, the perfection of liens on additional collateral, the valuation of collateral, and refinancing. Generally, there are not any loans with a consumer credit exposure that are classified as doubtful. Usually, they are charged-off Based on the most recent analysis performed, the risk category of loans and leases by class of loans is as follows: Commercial Real Estate – Owner-occupied Revolving (In thousands) Term Loans Origination Year Revolving loans amortized cost loans converted to As of December 31, 2022 2022 2021 2020 2019 2018 Prior basis term loans Total Internal Risk Grade: Pass $ 339,765 $ 276,667 $ 284,091 $ 122,582 $ 112,126 $ 504,485 $ 32,465 $ 350 $ 1,672,531 Special Mention 0 0 0 496 1,158 5,358 920 0 7,932 Substandard 143 936 522 417 642 41,301 0 233 44,194 Doubtful 0 0 0 0 0 270 0 0 270 Total $ 339,908 $ 277,603 $ 284,613 $ 123,495 $ 113,926 $ 551,414 $ 33,385 $ 583 $ 1,724,927 Current-period charge-offs 0 0 0 0 0 (68 ) 0 0 (68 ) Current-period recoveries 0 0 0 0 0 489 0 0 489 Current-period net recoveries $ 0 $ 0 $ 0 $ 0 $ 0 $ 421 $ 0 $ 0 $ 421 Revolving (In thousands) Term Loans Origination Year Revolving loans amortized cost loans and leases converted to As of December 31, 2021 2021 2020 2019 2018 2017 Prior basis term loans Total Internal Risk Grade: Pass $ 319,007 $ 310,893 $ 161,075 $ 135,472 $ 168,874 $ 539,640 $ 39,117 $ 401 $ 1,674,479 Special Mention 0 0 51 5,399 712 20,672 959 0 27,793 Substandard 0 55 38 661 1,304 27,458 839 244 30,599 Doubtful 0 0 0 0 0 305 0 0 305 Total $ 319,007 $ 310,948 $ 161,164 $ 141,532 $ 170,890 $ 588,075 $ 40,915 $ 645 $ 1,733,176 YTD charge-offs 0 0 0 0 (44 ) (370 ) 0 0 (414 ) YTD recoveries 0 0 0 0 13 856 0 0 869 YTD net (charge-offs) recoveries $ 0 $ 0 $ 0 $ 0 $ (31 ) $ 486 $ 0 $ 0 $ 455 Commercial Real Estate – Nonowner-occupied Revolving Term Loans Origination Year Revolving loans loans (In thousands) amortized cost As of December 31, 2022 2022 2021 2020 2019 2018 Prior basis term loans Total Internal Risk Grade: Pass $ 1,415,465 $ 1,399,023 $ 739,474 $ 687,755 $ 341,367 $ 1,297,076 $ 183,779 $ 135 $ 6,064,074 Special Mention 557 2,401 6,852 84,781 980 23,137 0 0 118,708 Substandard 0 0 673 34,079 17,180 51,897 363 0 104,192 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 1,416,022 $ 1,401,424 $ 746,999 $ 806,615 $ 359,527 $ 1,372,110 $ 184,142 $ 135 $ 6,286,974 Current-period charge-offs 0 0 0 0 0 0 0 0 0 Current-period recoveries 0 0 0 0 0 234 0 0 234 Current-period net recoveries $ 0 $ 0 $ 0 $ 0 $ 0 $ 234 $ 0 $ 0 $ 234 Revolving Term Loans Origination Year Revolving loans loans and leases (In thousands) amortized cost converted to As of December 31, 2021 2021 2020 2019 2018 2017 Prior basis term loans Total Internal Risk Grade: Pass $ 1,558,474 $ 925,508 $ 707,570 $ 460,660 $ 397,003 $ 1,490,548 $ 102,561 $ 2,039 $ 5,644,363 Special Mention 819 2,953 113,655 5,826 372 40,534 2,793 0 166,952 Substandard 0 714 13,042 28,411 1,095 102,711 0 0 145,973 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 1,559,293 $ 929,175 $ 834,267 $ 494,897 $ 398,470 $ 1,633,793 $ 105,354 $ 2,039 $ 5,957,288 YTD charge-offs 0 0 0 0 0 (3,531 ) 0 0 (3,531 ) YTD recoveries 0 0 0 0 0 1,907 0 0 1,097 YTD net charge-offs $ 0 $ 0 $ 0 $ 0 $ 0 $ (1,624 ) $ 0 $ 0 $ (1,624 ) Other commercial Revolving loans Revolving Term Loans and leases Origination Year and leases loans and leases (In thousands) amortized cost converted to As of December 31, 2022 2022 2021 2020 2019 2018 Prior basis term loans Total Internal Risk Grade: Pass $ 749,919 $ 581,588 $ 398,682 $ 230,209 $ 75,577 $ 426,406 $ 1,033,459 $ 1,596 $ 3,497,436 Special Mention 14,244 3,652 331 2,115 936 2,799 35,997 38 60,112 Substandard 4,023 432 29 871 5,603 6,182 37,778 42 54,960 Doubtful 0 0 0 0 0 60 0 0 60 Total $ 768,186 $ 585,672 $ 399,042 $ 233,195 $ 82,116 $ 435,447 $ 1,107,234 $ 1,676 $ 3,612,568 Current-period charge-offs 0 (364 ) (202 ) (211 ) (2,490 ) (1,041 ) 0 0 (4,308 ) Current-period recoveries 0 0 84 17 705 4,561 0 0 5,367 Current-period net (charge- offs) recoveries $ 0 $ (364 ) $ (118 ) $ (194 ) $ (1,785 ) $ 3,520 $ 0 $ 0 $ 1,059 Revolving loans Revolving Term Loans and leases Origination Year and leases loans and leases (In thousands) amortized cost converted to As of December 31, 2021 2021 2020 2019 2018 2017 Prior basis term loans Total Internal Risk Grade: Pass $ 924,726 $ 557,422 $ 306,945 $ 107,426 $ 87,090 $ 76,032 $ 1,211,865 $ 2,038 $ 3,273,544 Special Mention 1,880 0 31,614 3,012 1,801 3,390 76,987 61 118,745 Substandard 793 11 1,561 4,930 2,146 18,963 41,357 205 69,966 Doubtful 0 0 0 0 0 106 0 0 106 Total $ 927,399 $ 557,433 $ 340,120 $ 115,368 $ 91,037 $ 98,491 $ 1,330,209 $ 2,304 $ 3,462,361 YTD charge-offs 0 (87 ) (31 ) (200 ) (174 ) (5,650 ) (40 ) 0 (6,182 ) YTD recoveries 0 3 30 86 34 4,154 0 0 4,307 YTD net charge-offs $ 0 $ (84 ) $ (1 ) $ (114 ) $ (140 ) $ (1,496 ) $ (40 ) $ 0 $ (1,875 ) Residential Real Estate Revolving Term Loans Origination Year Revolving loans loans (In thousands) amortized cost As of December 31, 2022 2022 2021 2020 2019 2018 Prior basis term loans Total Internal Risk Grade: Pass $ 1,525,762 $ 847,177 $ 492,628 $ 291,334 $ 245,158 $ 791,366 $ 439,800 $ 2,683 $ 4,635,908 Special Mention 0 0 0 0 11 4,418 1,888 0 6,317 Substandard 0 1,448 68 445 866 17,001 858 0 20,686 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 1,525,762 $ 848,625 $ 492,696 $ 291,779 $ 246,035 $ 812,785 $ 442,546 $ 2,683 $ 4,662,911 Current-period charge-offs 0 (809 ) 0 0 (284 ) (453 ) 0 0 (1,546 ) Current-period recoveries 0 1 0 0 16 1,483 7 0 1,507 Current-period net (charge- offs) recoveries $ 0 $ (808 ) $ 0 $ 0 $ (268 ) $ 1,030 $ 7 $ 0 $ (39 ) Revolving Term Loans Origination Year Revolving loans loans (In thousands) amortized cost As of December 31, 2021 2021 2020 2019 2018 2017 Prior basis term loans Total Internal Risk Grade: Pass $ 815,693 $ 568,323 $ 383,250 $ 315,211 $ 178,101 $ 931,730 $ 455,705 $ 2,972 $ 3,650,985 Special Mention 0 0 0 223 91 12,251 2,339 0 14,904 Substandard 464 0 444 617 2,763 19,773 1,497 113 25,671 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 816,157 $ 568,323 $ 383,694 $ 316,051 $ 180,955 $ 963,754 $ 459,541 $ 3,085 $ 3,691,560 YTD charge-offs 0 0 (37 ) (38 ) (167 ) (5,774 ) 0 0 (6,016 ) YTD recoveries 0 0 0 0 3 2,384 13 0 2,400 YTD net charge-offs $ 0 $ 0 $ (37 ) $ (38 ) $ (164 ) $ (3,390 ) $ 13 $ 0 $ (3,616 ) Construction and Land Development Revolving Term Loans Origination Year Revolving loans loans (In thousands) amortized cost converted to As of December 31, 2022 2022 2021 2020 2019 2018 Prior basis term loans Total Internal Risk Grade: Pass $ 806,442 $ 1,109,601 $ 389,751 $ 133,711 $ 117,934 $ 109,320 $ 252,604 $ 0 $ 2,919,363 Special Mention 0 0 65 3,421 0 1,447 0 0 4,933 Substandard 0 219 0 13 0 2,443 0 0 2,675 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 806,442 $ 1,109,820 $ 389,816 $ 137,145 $ 117,934 $ 113,210 $ 252,604 $ 0 $ 2,926,971 Current-period charge-offs 0 0 0 0 0 (2 ) 0 0 (2 ) Current-period recoveries 0 0 0 0 0 1,414 0 0 1,414 Current-period net recoveries $ 0 $ 0 $ 0 $ 0 $ 0 $ 1,412 $ 0 $ 0 $ 1,412 Revolving Term Loans Origination Year Revolving loans loans (In thousands) amortized cost converted to As of December 31, 2021 2021 2020 2019 2018 2017 Prior basis term loans Total Internal Risk Grade: Pass $ 767,351 $ 518,291 $ 278,020 $ 152,062 $ 18,371 $ 74,532 $ 192,421 $ 0 $ 2,001,048 Special Mention 0 69 3,261 0 0 1,237 995 0 5,562 Substandard 332 0 280 925 0 5,272 746 0 7,555 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 767,683 $ 518,360 $ 281,561 $ 152,987 $ 18,371 $ 81,041 $ 194,162 $ 0 $ 2,014,165 YTD charge-offs 0 0 0 0 (177 ) (383 ) 0 0 (560 ) YTD recoveries 0 0 0 0 133 471 0 0 604 YTD net (charge-offs) recoveries $ 0 $ 0 $ 0 $ 0 $ (44 ) $ 88 $ 0 $ 0 $ 44 Bankcard Revolving Term Loans Origination Year Revolving loans loans (In thousands) amortized cost converted to As of December 31, 2022 2022 2021 2020 2019 2018 Prior basis term loans Total Internal Risk Grade: Pass $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 9,101 $ 0 $ 9,101 Special Mention 0 0 0 0 0 0 63 0 63 Substandard 0 0 0 0 0 0 109 0 109 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 9,273 $ 0 $ 9,273 Current-period charge-offs 0 0 0 0 0 0 (355 ) 0 (355 ) Current-period recoveries 0 0 0 0 0 0 9 0 9 Current-period net charge-offs $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ (346 ) $ 0 $ (346 ) Revolving Term Loans Origination Year Revolving loans loans (In thousands) amortized cost converted to As of December 31, 2021 2021 2020 2019 2018 2017 Prior basis term loans Total Internal Risk Grade: Pass $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 8,626 $ 0 $ 8,626 Special Mention 0 0 0 0 0 0 100 0 100 Substandard 0 0 0 0 0 0 187 0 187 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 8,913 $ 0 $ 8,913 YTD charge-offs 0 0 0 0 0 0 (190 ) 0 (190 ) YTD recoveries 0 0 0 0 0 0 42 0 42 YTD net charge-offs $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ (148 ) $ 0 $ (148 ) Other Consumer Revolving (In thousands) Term Loans Origination Year Revolving loans amortized cost loans converted to As of December 31, 2022 2022 2021 2020 2019 2018 Prior basis term loans Total Internal Risk Grade: Pass $ 626,666 $ 319,719 $ 176,423 $ 128,176 $ 55,147 $ 9,202 $ 2,644 $ 0 $ 1,317,977 Special Mention 9,891 13,449 5,769 3,075 1,295 464 50 0 33,993 Substandard 1,144 2,214 927 167 89 28 0 0 4,569 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 637,701 $ 335,382 $ 183,119 $ 131,418 $ 56,531 $ 9,694 $ 2,694 $ 0 $ 1,356,539 Current-period charge-offs (394 ) (1,435 ) (851 ) (331 ) (162 ) (198 ) 0 0 (3,371 ) Current-period recoveries 12 102 61 87 60 207 0 0 529 Current-period net (charge- offs) recoveries $ (382 ) $ (1,333 ) $ (790 ) $ (244 ) $ (102 ) $ 9 $ 0 $ 0 $ (2,842 ) Revolving (In thousands) Term Loans Origination Year Revolving loans amortized cost loans converted to As of December 31, 2021 2021 2020 2019 2018 2017 Prior basis term loans Total Internal Risk Grade: Pass $ 473,430 $ 293,023 $ 234,340 $ 119,678 $ 29,697 $ 10,335 $ 3,465 $ 0 $ 1,163,968 Special Mention 5,600 5,630 2,948 2,036 569 466 13 0 17,262 Substandard 903 930 456 211 22 87 5 0 2,614 Doubtful 0 0 0 0 0 0 0 0 0 Total $ 479,933 $ 299,583 $ 237,744 $ 121,925 $ 30,288 $ 10,888 $ 3,483 $ 0 $ 1,183,844 YTD charge-offs (101 ) (776 ) (709 ) (483 ) (126 ) (203 ) (6 ) 0 (2,404 ) YTD recoveries 5 86 51 101 18 186 2 0 449 YTD net charge-offs $ (96 ) $ (690 ) $ (658 ) $ (382 ) $ (108 ) $ (17 ) $ (4 ) $ 0 $ (1,955 ) |