2021 Annual Report

Accruing Interest 30-89 Days

90 Days or

(dollars in thousands)

Current Past Due More Past Due Nonaccrual

Total

December 31, 2020 Commercial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 304,211 $ Paycheck Protection Program . . . . . . . . . . . . . . . . . 138,454 Construction and Land Development . . . . . . . . . . 170,061 Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage. . . . . . . . 30,280 1st REM - 1-4 Family. . . . . . . . . . . . . . . . . . . . . . . . 41,942 LOCs and 2nd REM - Rentals . . . . . . . . . . . . . . . . . 20,668 1st REM - Rentals. . . . . . . . . . . . . . . . . . . . . . . . . . . 201,579 Multifamily . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 626,465 CRE Owner Occupied . . . . . . . . . . . . . . . . . . . . . . . 74,991 CRE Nonowner Occupied . . . . . . . . . . . . . . . . . . . . 709,300 Consumer and Other . . . . . . . . . . . . . . . . . . . . . . . . 7,689 Totals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,325,640 $

3 $

— $

6 $ 304,220 — 138,454 156 170,217 — 30,280 — 41,942 — 20,678 — 201,579 — 626,465 613 75,604 — 709,300

— — — — 10 — — — — —

— — — — — — — — — —

—

7,689

13 $

— $ 775 $ 2,326,428

At December 31, 2021, there were four loans classified as troubled debt restructurings with total aggregate outstanding balances of $1.4 million. In comparison, at December 31, 2020, there were three loans classified as troubled debt restructurings with total aggregate outstanding balances of $421,000. There was one new loan classified as troubled debt restructuring during the year ended December 31, 2021 and no loans classified as troubled debt restructurings during the previous twelve months that subsequently defaulted during the year ended December 31, 2021. In response to the COVID-19 pandemic, the Company developed programs for clients who experienced business and personal disruptions due to the COVID-19 pandemic pursuant to which the Company provided interest- only modifications, loan payment deferrals or extended amortization modifications. In accordance with interagency regulatory guidance and the CARES Act, qualifying loans modified in response to the COVID-19 pandemic are not considered troubled debt restructurings. The following table presents a summary of active loan modifications made in response to the COVID-19 pandemic, by loan segment and modification type, as of December 31, 2021:

Interest-Only

Extended Amortization

Total

(dollars in thousands)

Amount

# of Loans

Amount

# of Loans

Amount

# of Loans

Commercial . . . . . . . . . . . . . . . . . . . Real Estate Mortgage: CRE Owner Occupied . . . . . . . . CRE Nonowner Occupied . . . . . Totals . . . . . . . . . . . . . . . . . . . . .

$

315

2

$

4,740

1

$

5,055

3

592

3 6

— —

— —

592

3 6

29,342 30,249

29,342 34,989

$

11

$

4,740

1

$

12

Note 6: Premises and Equipment Premises and equipment are summarized as follows for the years ended December 31, 2021 and 2020:

Range of

December 31,

(dollars in thousands)

Useful Lives

2021

2020

Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,174 $ 5,174 Building . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 - 39 Years 40,758 41,025 Leasehold Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 - 10 Years 2,684 2,538 Furniture and Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 - 5 Years 7,058 6,160 Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55,674 54,897 Accumulated Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,279) (3,910) Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 49,395 $ 50,987 N/A

107