Loans

6 Months Ended

Jun. 30, 2025

Note 6 — Loans

The following is a summary of total loans:


	June 30,		December 31,
(Dollars in thousands)	2025		2024
Loans:
Construction and land development ⁽¹⁾	$	3,323,923	$	2,184,327
Commercial non-owner-occupied		15,646,669		9,383,732
Commercial owner-occupied real estate		7,497,906		5,716,376
Consumer owner-occupied ⁽²⁾		8,330,548		7,144,885
Home equity loans		1,707,821		1,570,084
Commercial and industrial		8,445,878		6,222,876
Other income producing property		1,306,741		607,750
Consumer		1,007,251		1,062,599
Other loans		510		10,298
Total loans		47,267,247		33,902,927
Less: allowance for credit losses		(621,046)		(465,280)
Loans, net	$	46,646,201	$	33,437,647

(1)

Construction and land development includes loans for both commercial construction and development, as well as loans for 1-4 family residential construction and lot loans.

(2)

Consumer owner-occupied real estate includes loans on both 1-4 family owner-occupied property, as well as loans collateralized by 1-4 family owner-occupied properties with a business intent.

The above table reflects the loan portfolio at the amortized cost basis for the periods June 30, 2025, and December 31, 2024, to include net deferred costs of $92.8 million and $86.7 million, respectively, and unamortized discount related to loans acquired of $392.8 million and $36.9 million, respectively. Accrued interest receivables of $183.7 million and $133.0 million, respectively, are accounted for separately and reported in other assets for the periods June 30, 2025 and December 31, 2024.

The Company purchased loans through its acquisition of Independent, for which there was, at acquisition, evidence of more than an insignificant deterioration of credit quality since origination, thus determined to be PCD loans. The carrying amount of those acquired PCD loans, at acquisition, is as follows:


(Dollars in thousands)	January 1, 2025
Book value of acquired loans at acquisition	$	3,081,440
Allowance for credit losses at acquisition		(135,441)
Non-credit discount at acquisition		(151,993)
Carrying value or book value of acquired loans at acquisition	$	2,794,006

As part of the ongoing monitoring of the credit quality of our loan portfolio, management tracks certain credit quality indicators, including trends related to (i) the level of classified loans, (ii) net charge-offs, (iii) non-performing loans (see details below), and (iv) the general economic conditions of the markets that we serve.

The Company utilizes a risk grading matrix to assign a risk grade to each commercial loan. Classified loans are assessed at a minimum every six months. A description of the general characteristics of the risk grades is as follows:

●

Pass—These loans range from minimal credit risk to average, however, are still an acceptable credit risk.

●

Special mention—A special mention loan has potential weaknesses that deserve Management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or the Bank’s credit position at some future date.

●

Substandard—A substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness, or weaknesses, that may jeopardize the liquidation of the debt. A substandard loan is characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.

●

Doubtful—A doubtful loan has all of the weaknesses inherent in one classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of the currently existing facts, conditions and values, highly questionable and improbable.

Construction and land development loans in the following table are on commercial and speculative real estate. Consumer owner-occupied loans are collateralized by 1-4 family owner-occupied properties with a business intent.

The following table presents the credit risk profile by risk grade of commercial loans by origination year as of and for the period ending June 30, 2025:


(Dollars in thousands)		Term Loans Amortized Cost Basis by Origination Year
As of June 30, 2025	2025		2024		2023		2022		2021		Prior		Revolving		Total
Construction and land development
Risk rating:
Pass	$	358,406	$	735,023	$	507,851	$	649,748	$	139,906	$	64,208	$	109,977	$	2,565,119
Special mention		2		626		60,644		156,633		3,805		3,993		—		225,703
Substandard		1,081		16,332		32,051		103,639		3,479		5,447		—		162,029
Doubtful		—		—		—		—		—		5		—		5
Total Construction and land development	$	359,489	$	751,981	$	600,546	$	910,020	$	147,190	$	73,653	$	109,977	$	2,952,856
Construction and land development
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	16	$	—	$	—	$	16

Commercial non-owner-occupied
Risk rating:
Pass	$	840,937	$	1,187,686	$	1,342,936	$	4,243,573	$	2,673,803	$	3,627,263	$	177,386	$	14,093,584
Special mention		5,896		7,749		32,021		290,180		149,681		70,238		811		556,576
Substandard		49,540		29,260		141,752		288,146		279,213		208,443		151		996,505
Doubtful		—		—		—		—		1		3		—		4
Total Commercial non-owner-occupied	$	896,373	$	1,224,695	$	1,516,709	$	4,821,899	$	3,102,698	$	3,905,947	$	178,348	$	15,646,669
Commercial non-owner-occupied
Current-period gross charge-offs	$	—	$	—	$	4,565	$	435	$	18,033	$	8,068	$	—	$	31,101

Commercial Owner-Occupied
Risk rating:
Pass	$	551,163	$	793,227	$	687,443	$	1,201,264	$	1,184,325	$	2,599,209	$	98,227	$	7,114,858
Special mention		2,417		5,343		4,626		3,776		6,302		33,064		369		55,897
Substandard		7,061		6,013		55,033		104,475		47,077		106,241		1,233		327,133
Doubtful		7		4		3		—		—		4		—		18
Total commercial owner-occupied	$	560,648	$	804,587	$	747,105	$	1,309,515	$	1,237,704	$	2,738,518	$	99,829	$	7,497,906
Commercial owner-occupied
Current-period gross charge-offs	$	—	$	—	$	423	$	966	$	—	$	603	$	—	$	1,992

Commercial and industrial
Risk rating:
Pass	$	1,552,659	$	1,366,417	$	752,676	$	1,051,703	$	540,483	$	905,561	$	1,863,274	$	8,032,773
Special mention		3,106		2,255		32,680		18,721		1,623		2,635		28,433		89,453
Substandard		18,032		34,168		42,777		45,581		40,821		30,817		111,301		323,497
Doubtful		—		—		29		66		48		—		12		155
Total commercial and industrial	$	1,573,797	$	1,402,840	$	828,162	$	1,116,071	$	582,975	$	939,013	$	2,003,020	$	8,445,878
Commercial and industrial
Current-period gross charge-offs	$	467	$	1,774	$	2,376	$	6,558	$	12,409	$	10,518	$	1,356	$	35,458

Other income producing property
Risk rating:
Pass	$	59,282	$	128,479	$	126,210	$	310,844	$	187,874	$	277,182	$	60,813	$	1,150,684
Special mention		477		585		150		3,796		6		2,598		1,048		8,660
Substandard		689		790		1,947		5,912		635		16,929		705		27,607
Doubtful		—		—		—		—		—		—		—		—
Total other income producing property	$	60,448	$	129,854	$	128,307	$	320,552	$	188,515	$	296,709	$	62,566	$	1,186,951
Other income producing property
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Consumer owner-occupied
Risk rating:
Pass	$	12,028	$	5,204	$	21,991	$	16,527	$	12,071	$	28,607	$	42,540	$	138,968
Special mention		166		18		135		—		—		—		—		319
Substandard		1,375		959		—		—		—		164		1,233		3,731
Doubtful		—		—		—		—		—		1		—		1
Total Consumer owner-occupied	$	13,569	$	6,181	$	22,126	$	16,527	$	12,071	$	28,772	$	43,773	$	143,019
Consumer owner-occupied
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Other loans
Risk rating:
Pass	$	510	$	—	$	—	$	—	$	—	$	—	$	—	$	510
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total other loans	$	510	$	—	$	—	$	—	$	—	$	—	$	—	$	510
Other loans
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Total Commercial Loans
Risk rating:
Pass	$	3,374,985	$	4,216,036	$	3,439,107	$	7,473,659	$	4,738,462	$	7,502,030	$	2,352,217	$	33,096,496
Special mention		12,064		16,576		130,256		473,106		161,417		112,528		30,661		936,608
Substandard		77,778		87,522		273,560		547,753		371,225		368,041		114,623		1,840,502
Doubtful		7		4		32		66		49		13		12		183
Total Commercial Loans	$	3,464,834	$	4,320,138	$	3,842,955	$	8,494,584	$	5,271,153	$	7,982,612	$	2,497,513	$	35,873,789
Commercial Loans
Current-period gross charge-offs	$	467	$	1,774	$	7,364	$	7,959	$	30,458	$	19,189	$	1,356	$	68,567

The following table presents the credit risk profile by risk grade of commercial loans by origination year as of and for the period ending December 31, 2024:


(Dollars in thousands)		Term Loans Amortized Cost Basis by Origination Year
As of December 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving		Total
Construction and land development
Risk rating:
Pass	$	339,152	$	397,574	$	843,053	$	42,524	$	9,327	$	13,462	$	35,025	$	1,680,117
Special mention		627		30,791		35,170		579		—		321		—		67,488
Substandard		16,672		—		32,483		750		—		581		—		50,486
Doubtful		—		—		—		—		1		4		—		5
Total Construction and land development	$	356,451	$	428,365	$	910,706	$	43,853	$	9,328	$	14,368	$	35,025	$	1,798,096
Construction and land development
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	74	$	2,088	$	—	$	2,162

Commercial non-owner-occupied
Risk rating:
Pass	$	782,863	$	798,454	$	2,664,327	$	1,770,690	$	575,679	$	1,724,342	$	111,021	$	8,427,376
Special mention		6,954		36,014		120,363		137,945		7,486		13,920		195		322,877
Substandard		82,369		47,934		177,487		125,634		82,448		117,606		—		633,478
Doubtful		—		—		—		1		—		—		—		1
Total Commercial non-owner-occupied	$	872,186	$	882,402	$	2,962,177	$	2,034,270	$	665,613	$	1,855,868	$	111,216	$	9,383,732
Commercial non-owner-occupied
Current-period gross charge-offs	$	—	$	—	$	—	$	176	$	—	$	354	$	—	$	530

Commercial Owner-Occupied
Risk rating:
Pass	$	624,613	$	648,461	$	1,020,841	$	1,004,549	$	572,108	$	1,440,686	$	87,011	$	5,398,269
Special mention		4,571		14,537		38,361		8,092		1,114		15,112		212		81,999
Substandard		25,843		35,855		49,032		34,135		21,502		58,982		10,748		236,097
Doubtful		4		3		—		—		—		4		—		11
Total commercial owner-occupied	$	655,031	$	698,856	$	1,108,234	$	1,046,776	$	594,724	$	1,514,784	$	97,971	$	5,716,376
Commercial owner-occupied
Current-period gross charge-offs	$	—	$	298	$	—	$	91	$	227	$	583	$	—	$	1,199

Commercial and industrial
Risk rating:
Pass	$	1,881,120	$	683,911	$	939,929	$	462,655	$	292,253	$	419,145	$	1,226,413	$	5,905,426
Special mention		2,103		2,467		16,120		1,217		628		2,468		22,764		47,767
Substandard		42,308		43,207		37,526		26,080		2,796		18,180		99,460		269,557
Doubtful		—		12		42		57		1		9		5		126
Total commercial and industrial	$	1,925,531	$	729,597	$	993,617	$	490,009	$	295,678	$	439,802	$	1,348,642	$	6,222,876
Commercial and industrial
Current-period gross charge-offs	$	2,971	$	2,752	$	5,946	$	666	$	100	$	4,587	$	3,859	$	20,881

Other income producing property
Risk rating:
Pass	$	63,518	$	51,585	$	105,505	$	84,679	$	45,600	$	95,969	$	37,166	$	484,022
Special mention		612		493		5,947		27		837		2,145		1,269		11,330
Substandard		1,029		712		2,333		2,081		327		5,043		436		11,961
Doubtful		—		—		—		—		—		—		—		—
Total other income producing property	$	65,159	$	52,790	$	113,785	$	86,787	$	46,764	$	103,157	$	38,871	$	507,313
Other income producing property
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Consumer owner-occupied
Risk rating:
Pass	$	4,035	$	17,776	$	5,557	$	3,259	$	594	$	257	$	31,610	$	63,088
Special mention		19		222		—		—		14		35		231		521
Substandard		1,131		—		—		—		3		205		1,961		3,300
Doubtful		—		—		—		—		—		1		—		1
Total Consumer owner-occupied	$	5,185	$	17,998	$	5,557	$	3,259	$	611	$	498	$	33,802	$	66,910
Consumer owner-occupied
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Other loans
Risk rating:
Pass	$	10,298	$	—	$	—	$	—	$	—	$	—	$	—	$	10,298
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total other loans	$	10,298	$	—	$	—	$	—	$	—	$	—	$	—	$	10,298
Other loans
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Total Commercial Loans
Risk rating:
Pass	$	3,705,599	$	2,597,761	$	5,579,212	$	3,368,356	$	1,495,561	$	3,693,861	$	1,528,246	$	21,968,596
Special mention		14,886		84,524		215,961		147,860		10,079		34,001		24,671		531,982
Substandard		169,352		127,708		298,861		188,680		107,076		200,597		112,605		1,204,879
Doubtful		4		15		42		58		2		18		5		144
Total Commercial Loans	$	3,889,841	$	2,810,008	$	6,094,076	$	3,704,954	$	1,612,718	$	3,928,477	$	1,665,527	$	23,705,601
Commercial Loans
Current-period gross charge-offs	$	2,971	$	3,050	$	5,946	$	933	$	401	$	7,612	$	3,859	$	24,772

For the consumer segment, delinquency of a loan is determined by past due status. Consumer loans are automatically placed on nonaccrual status once the loan is 90 days past due. Construction and land development loans are on 1-4 family residential properties and lots.

The following table presents the credit risk profile by past due status of consumer loans by origination year as of and for the period ending June 30, 2025:


(Dollars in thousands)	Term Loans Amortized Cost Basis by Origination Year
As of June 30, 2025	2025		2024		2023		2022		2021		Prior		Revolving		Total
Consumer owner-occupied
Days past due:
Current	$	478,691	$	689,206	$	1,086,792	$	2,507,152	$	1,697,732	$	1,676,169	$	—	$	8,135,742
30 days past due		229		4,944		4,175		3,961		3,632		4,459		—		21,400
60 days past due		—		1,995		2,010		482		931		2,552		—		7,970
90 days past due		—		1,666		4,617		5,895		2,184		8,055		—		22,417
Total Consumer owner-occupied	$	478,920	$	697,811	$	1,097,594	$	2,517,490	$	1,704,479	$	1,691,235	$	—	$	8,187,529
Consumer owner-occupied
Current-period gross charge-offs	$	—	$	291	$	329	$	272	$	17	$	58	$	—	$	967

Home equity loans
Days past due:
Current	$	1,941	$	7,125	$	4,738	$	4,091	$	1,207	$	14,168	$	1,666,086	$	1,699,356
30 days past due		—		142		94		—		89		524		2,759		3,608
60 days past due		—		—		—		—		—		424		1,425		1,849
90 days past due		—		36		434		536		188		941		873		3,008
Total Home equity loans	$	1,941	$	7,303	$	5,266	$	4,627	$	1,484	$	16,057	$	1,671,143	$	1,707,821
Home equity loans
Current-period gross charge-offs	$	—	$	—	$	—	$	64	$	—	$	165	$	—	$	229

Consumer
Days past due:
Current	$	121,174	$	165,822	$	186,421	$	182,972	$	76,640	$	179,891	$	88,619	$	1,001,539
30 days past due		21		185		586		139		395		831		137		2,294
60 days past due		5		136		195		228		146		378		75		1,163
90 days past due		202		55		301		349		88		1,259		1		2,255
Total consumer	$	121,402	$	166,198	$	187,503	$	183,688	$	77,269	$	182,359	$	88,832	$	1,007,251
Consumer
Current-period gross charge-offs	$	10	$	393	$	426	$	373	$	75	$	2,556	$	2,479	$	6,312

Construction and land development
Days past due:
Current	$	35,790	$	137,110	$	43,788	$	84,568	$	36,678	$	29,802	$	—	$	367,736
30 days past due		—		—		77		2,945		—		119		—		3,141
60 days past due		—		—		77		—		—		15		—		92
90 days past due		—		—		—		3		—		95		—		98
Total Construction and land development	$	35,790	$	137,110	$	43,942	$	87,516	$	36,678	$	30,031	$	—	$	371,067
Construction and land development
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Other income producing property
Days past due:
Current	$	877	$	4,615	$	8,458	$	53,837	$	18,364	$	33,369	$	155	$	119,675
30 days past due		—		—		—		—		—		—		—		—
60 days past due		—		—		—		—		—		—		—		—
90 days past due		—		—		—		—		—		115		—		115
Total other income producing property	$	877	$	4,615	$	8,458	$	53,837	$	18,364	$	33,484	$	155	$	119,790
Other income producing property
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Total Consumer Loans
Days past due:
Current	$	638,473	$	1,003,878	$	1,330,197	$	2,832,620	$	1,830,621	$	1,933,399	$	1,754,860	$	11,324,048
30 days past due		250		5,271		4,932		7,045		4,116		5,933		2,896		30,443
60 days past due		5		2,131		2,282		710		1,077		3,369		1,500		11,074
90 days past due		202		1,757		5,352		6,783		2,460		10,465		874		27,893
Total Consumer Loans	$	638,930	$	1,013,037	$	1,342,763	$	2,847,158	$	1,838,274	$	1,953,166	$	1,760,130	$	11,393,458
Consumer Loans
Current-period gross charge-offs	$	10	$	684	$	755	$	709	$	92	$	2,779	$	2,479	$	7,508

The following table presents the credit risk profile by past due status of total loans by origination year as of and for the period ending June 30, 2025:

(Dollars in thousands)

Term Loans Amortized Cost Basis by Origination Year

As of June 30, 2025

2025

2024

2023

2022

2021

Prior

Revolving

Total

Total Loans

4,103,764

5,333,175

5,185,718

11,341,742

7,109,427

9,935,778

4,257,643

47,267,247

Current-period gross charge-offs

477

2,458

8,119

8,668

30,550

21,968

3,835

76,075

The following table presents the credit risk profile by past due status of consumer loans by origination year as of and for the period ending December 31, 2024:


(Dollars in thousands)	Term Loans Amortized Cost Basis by Origination Year
As of December 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving		Total
Consumer owner-occupied
Days past due:
Current	$	623,572	$	1,052,852	$	2,303,614	$	1,578,097	$	577,381	$	908,983	$	—	$	7,044,499
30 days past due		1,362		1,847		1,302		614		897		3,045		—		9,067
60 days past due		685		453		2,281		354		251		757		—		4,781
90 days past due		2,283		4,336		6,314		1,730		1,034		3,931		—		19,628
Total Consumer owner-occupied	$	627,902	$	1,059,488	$	2,313,511	$	1,580,795	$	579,563	$	916,716	$	—	$	7,077,975
Consumer owner-occupied
Current-period gross charge-offs	$	35	$	328	$	284	$	16	$	21	$	44	$	—	$	728

Home equity loans
Days past due:
Current	$	7,309	$	6,553	$	3,701	$	1,515	$	1,739	$	10,600	$	1,527,504	$	1,558,921
30 days past due		57		75		74		—		64		788		5,019		6,077
60 days past due		—		73		69		—		—		120		2,044		2,306
90 days past due		52		137		388		76		341		467		1,319		2,780
Total Home equity loans	$	7,418	$	6,838	$	4,232	$	1,591	$	2,144	$	11,975	$	1,535,886	$	1,570,084
Home equity loans
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	110	$	—	$	110

Consumer
Days past due:
Current	$	194,192	$	218,440	$	218,097	$	95,017	$	50,337	$	155,109	$	116,590	$	1,047,782
30 days past due		103		269		309		261		199		1,426		4,926		7,493
60 days past due		40		64		86		97		95		319		2,994		3,695
90 days past due		20		442		393		147		15		1,128		1,484		3,629
Total consumer	$	194,355	$	219,215	$	218,885	$	95,522	$	50,646	$	157,982	$	125,994	$	1,062,599
Consumer
Current-period gross charge-offs	$	194	$	1,610	$	1,377	$	197	$	80	$	451	$	5,247	$	9,156

Construction and land development
Days past due:
Current	$	75,490	$	81,995	$	152,974	$	46,873	$	13,253	$	15,309	$	—	$	385,894
30 days past due		—		—		—		—		—		16		—		16
60 days past due		—		—		—		—		—		—		—		—
90 days past due		—		—		320		—		1		—		—		321
Total Construction and land development	$	75,490	$	81,995	$	153,294	$	46,873	$	13,254	$	15,325	$	—	$	386,231
Construction and land development
Current-period gross charge-offs	$	—	$	—	$	304	$	—	$	—	$	—	$	—	$	304

Other income producing property
Days past due:
Current	$	3,041	$	6,066	$	39,445	$	16,556	$	3,511	$	31,549	$	128	$	100,296
30 days past due		—		—		—		—		—		24		—		24
60 days past due		—		—		—		—		—		—		—		—
90 days past due		—		—		—		—		—		117		—		117
Total other income producing property	$	3,041	$	6,066	$	39,445	$	16,556	$	3,511	$	31,690	$	128	$	100,437
Other income producing property
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Total Consumer Loans
Days past due:
Current	$	903,604	$	1,365,906	$	2,717,831	$	1,738,058	$	646,221	$	1,121,550	$	1,644,222	$	10,137,392
30 days past due		1,522		2,191		1,685		875		1,160		5,299		9,945		22,677
60 days past due		725		590		2,436		451		346		1,196		5,038		10,782
90 days past due		2,355		4,915		7,415		1,953		1,391		5,643		2,803		26,475
Total Consumer Loans	$	908,206	$	1,373,602	$	2,729,367	$	1,741,337	$	649,118	$	1,133,688	$	1,662,008	$	10,197,326
Consumer Loans
Current-period gross charge-offs	$	229	$	1,938	$	1,965	$	213	$	101	$	605	$	5,247	$	10,298

The following table presents the credit risk profile by past due status of total loans by origination year as of and for the period ending December 31, 2024:


(Dollars in thousands)	Term Loans Amortized Cost Basis by Origination Year
As of December 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving		Total
Total Loans	$	4,798,047	$	4,183,610	$	8,823,443	$	5,446,291	$	2,261,836	$	5,062,165	$	3,327,535	$	33,902,927

Current-period gross charge-offs	$	3,200	$	4,988	$	7,911	$	1,146	$	502	$	8,217	$	9,106	$	35,070

The following table presents an aging analysis of past due accruing loans, segregated by class:


	30 - 59 Days		60 - 89 Days		90+ Days		Total				Non-		Total
(Dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Accruing		Loans
June 30, 2025
Construction and land development	$	5,442	$	645	$	—	$	6,087	$	3,317,080	$	756	$	3,323,923
Commercial non-owner-occupied		2,375		1,884		422		4,681		15,560,938		81,050		15,646,669
Commercial owner-occupied		8,766		1,408		477		10,651		7,447,146		40,109		7,497,906
Consumer owner-occupied		17,666		828		—		18,494		8,260,500		51,554		8,330,548
Home equity loans		2,320		1,258		—		3,578		1,693,408		10,835		1,707,821
Commercial and industrial		24,034		21,442		3,282		48,758		8,293,948		103,172		8,445,878
Other income producing property		932		1,015		213		2,160		1,302,671		1,910		1,306,741
Consumer		2,090		782		—		2,872		1,000,389		3,990		1,007,251
Other loans		—		—		—		—		510		—		510
	$	63,625	$	29,262	$	4,394	$	97,281	$	46,876,590	$	293,376	$	47,267,247
December 31, 2024
Construction and land development	$	16	$	—	$	—	$	16	$	2,182,853	$	1,458	$	2,184,327
Commercial non-owner-occupied		2,253		748		—		3,001		9,363,226		17,505		9,383,732
Commercial owner-occupied		7,208		2,844		92		10,144		5,670,550		35,682		5,716,376
Consumer owner-occupied		6,536		444		—		6,980		7,094,851		43,054		7,144,885
Home equity loans		4,717		1,511		1		6,229		1,553,832		10,023		1,570,084
Commercial and industrial		28,427		7,700		3,163		39,290		6,091,566		92,020		6,222,876
Other income producing property		237		116		37		390		605,162		2,198		607,750
Consumer		7,023		3,444		—		10,467		1,046,776		5,356		1,062,599
Other loans		—		—		—		—		10,298		—		10,298
	$	56,417	$	16,807	$	3,293	$	76,517	$	33,619,114	$	207,296	$	33,902,927

The following table is a summary of information pertaining to nonaccrual loans by class, including loans modified for borrowers with financial difficulty as of June 30, 2025 and December 31, 2024:

June 30,

Greater than

Non-accrual

December 31,

(Dollars in thousands)

2025

90 Days Accruing⁽¹⁾

with no allowance⁽¹⁾

2024

Construction and land development

756

—

1,458

Commercial non-owner-occupied

81,050

422

73,793

17,505

Commercial owner-occupied real estate

40,109

477

10,157

35,682

Consumer owner-occupied

51,554

—

43,054

Home equity loans

10,835

—

1,118

10,023

Commercial and industrial

103,172

3,282

15,214

92,020

Other income producing property

1,910

213

717

2,198

Consumer

3,990

—

5,356

Total loans on nonaccrual status

293,376

4,394

100,999

207,296

(1)

Greater than 90 days accruing and non-accrual with no allowance loans at June 30, 2025.

There is no interest income recognized during the period on nonaccrual loans. The Company follows its nonaccrual policy by reversing contractual interest income in the income statement when the Company places a loan on nonaccrual status. Loans on nonaccrual status in which there is no allowance assigned are individually evaluated loans that do not carry a specific reserve. See Note 2 — Summary of Significant Accounting Policies for further detailed descriptions on individually evaluated loans.

The following is a summary of collateral dependent loans, by type of collateral, and the extent to which they are collateralized during the period:


	June 30,		Collateral			December 31,		Collateral
(Dollars in thousands)	2025		Coverage		%	2024		Coverage		%
Commercial owner-occupied real estate
Industrial	$	—	$	—		$	2,835	$	6,831	241%
Other		11,650		20,677	177%		11,087		20,683	187%
Commercial non-owner-occupied real estate
Retail		3,475		5,251	151%		—		—
Other		3,081		3,582	116%		—		—
Office		21,548		26,858	125%		14,223		15,594	110%
Multifamily		45,956		50,003	109%
Commercial and industrial
Other		61,689		53,783	87%		59,171		74,549	126%
Other income producing property
1-4 family investment property		717		545	76%		1,265		3,286	260%
Consumer owner-occupied
1st Mtg Residential		—		—			963		954	99%
Home equity loans
Residential 1-4 family dwelling		1,118		2,250	201%		1,173		2,250	192%
Total collateral dependent loans	$	149,234	$	162,949		$	90,717	$	124,147

The Bank designates individually evaluated loans on non-accrual with a net book balance exceeding the designated threshold as collateral dependent loans. Collateral dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. As a result of the acquisition of Independent on January 1, 2025, collateral dependent loans increased $80.3 million from the date of acquisition. Overall collateral dependent loans increased $58.5 million, net of payoffs, charge offs and loans returned to nonaccrual status during the six months ended June 30, 2025. See Note 4 — Loans of our Annual Report on Form 10-K for the year ended December 31, 2024, for more detailed descriptions of how the ACL is measured on collateral dependent, individually evaluated loans on non-accrual status.

Loans on nonaccrual status at the date of modification are initially classified as nonaccrual. Loans on accruing status at the date of modification are initially classified as accruing if the note is reasonably assured of repayment and performance is expected in accordance with its modified terms. Such loans may be designated as nonaccrual loans subsequent to the modification date if reasonable doubt exists as to the collection of interest or principal under the modification agreement. Nonaccrual loans are returned to accruing status when there is economic substance to the modification, there is documented credit evaluation of the borrower’s financial condition, the remaining balance is reasonably assured of repayment in accordance with its modified terms, and the borrower has demonstrated sustained repayment performance in accordance with the modified terms for a reasonable period of time (generally a minimum of six months). See Note 2 — Summary of Significant Accounting Policies for how such modifications are factored into the determination of the ACL for the periods presented above.

The following tables present loans designated as modifications made to borrowers experiencing financial difficulty during the three and six months ended June 30, 2025, and 2024, respectively. The loans are segregated by type of modification and asset class, indicating the financial effect of the modifications. There were no combination interest rate reduction and payment delay modifications for the three months ended June 30, 2025.

Three Months Ended June 30,

2025

2024

Reduction in Weighted

Amortized

% of Total

Average Contractual

Amortized

% of Total

Average Contractual

(Dollars in thousands)

Cost

Asset Class

Interest Rate

Cost

Asset Class

Interest Rate

Interest rate reduction

Commercial owner-occupied real estate

332

0.00%

1.55%

—

Consumer owner-occupied

—

398

0.01%

1.15%

Total interest rate reductions

332

398

Six Months Ended June 30,

2025

2024

Reduction in Weighted

Amortized

% of Total

Average Contractual

Amortized

% of Total

Average Contractual

(Dollars in thousands)

Cost

Asset Class

Interest Rate

Cost

Asset Class

Interest Rate

Interest rate reduction

Commercial non-owner occupied

15,045

0.10%

0.86%

—

Commercial owner-occupied real estate

332

0.00%

1.55%

1,321

0.02%

3.14%

Commercial and industrial

378

0.00%

1.75%

—

Total interest rate reductions

15,755

1,321

Three Months Ended June 30,

2025

2024

Increase in

Amortized

% of Total

Weighted Average

Amortized

% of Total

Weighted Average

(Dollars in thousands)

Cost

Asset Class

Life of Loan

Cost

Asset Class

Life of Loan

Term extension

Commercial owner-occupied real estate

—

11,050

0.20%

32 months

Consumer owner-occupied

4,269

0.05%

4 months

1,047

0.02%

3 months

Commercial and industrial

9,245

0.11%

4 months

20,529

0.36%

37 months

Total term extensions

13,514

32,626

Six Months Ended June 30,

2025

2024

Increase in

Amortized

% of Total

Weighted Average

Amortized

% of Total

Weighted Average

(Dollars in thousands)

Cost

Asset Class

Life of Loan

Cost

Asset Class

Life of Loan

Term extension

Construction and land development

286

0.01%

9 months

—

Commercial owner-occupied real estate

—

11,050

0.20%

32 months

Consumer owner-occupied

4,269

0.05%

4 months

1,047

0.02%

3 months

Commercial and industrial

9,245

0.11%

4 months

20,529

0.36%

37 months

Total term extensions

13,800

32,626

Three Months Ended June 30,

2025

2024

WA of

Amortized

% of Total

Months Payments

Amortized

% of Total

Months Payments

(Dollars in thousands)

Cost

Asset Class

Were Deferred

Cost

Asset Class

Were Deferred

Other-than-insignificant payment delay

Commercial owner-occupied real estate

5,404

0.07%

6 months

—

Commercial and industrial

1,610

0.02%

6 months

—

Total payment delays

7,014

—

Six Months Ended June 30,

2025

2024

Number (or WA) of

Amortized

% of Total

Months Payments

Amortized

% of Total

Months Payments

(Dollars in thousands)

Cost

Asset Class

Were Deferred

Cost

Asset Class

Were Deferred

Other-than-insignificant payment delay

Commercial owner-occupied real estate

5,713

0.08%

7 months

—

Commercial and industrial

1,610

0.02%

6 months

—

Total payment delays

7,323

—

Three Months Ended June 30,

2025

2024

Reduction in

Increase in

Weighted

Increase in

Weighted Average

Weighted

Average

Weighted

Amortized

Contractual

Average

Amortized

Contractual

Average

(Dollars in thousands)

Cost

Interest Rate

Life of Loan

Cost

Interest Rate

Life of Loan

Combination- Term Extension and Interest Rate Reduction

Consumer owner-occupied

363

1.50%

18 months

—

Total

363

—

Six Months Ended June 30,

2025

2024

Reduction in

Increase in

Weighted

Increase in

Weighted Average

Weighted

Average

Weighted

Amortized

Contractual

Average

Amortized

Contractual

Average

(Dollars in thousands)

Cost

Interest Rate

Life of Loan

Cost

Interest Rate

Life of Loan

Combination- Term Extension and Interest Rate Reduction

Consumer owner-occupied

853

3.01%

9 months

—

Total

853

—

Six Months Ended June 30,

2025

2024

Reduction in

Increase in

Reduction in

Increase in

Weighted

Average

Amortized

Contractual

Amortization

Amortized

Contractual

Amortization

(Dollars in thousands)

Cost

Interest Rate

Term

Cost

Interest Rate

Term

Combination- Interest Rate Reduction and Payment Delay

Commercial and industrial

1,177

0.75%

12 months

—

Total

1,177

—

The Bank on occasion will enter into modification agreements which extend the maturity payoff on a loan or reduce the interest rate for borrowers willing to continue to pay, to minimize losses for the Bank. At June 30, 2025, the Company had $88,000 in remaining commitments to lend additional funds on loans to borrowers experiencing financial difficulty and modified during the current reporting period.

The following table presents the changes in status of loans modified within the previous twelve months to borrowers experiencing financial difficulty, as of June 30, 2025 and 2024, by type of modification. The subsequent defaults were all due to past due status greater than 60 days and loss mitigation efforts.


	June 30,
	2025						2024
	Paying Under						Paying Under
	Restructured		Converted to		Foreclosures		Restructured		Converted to		Foreclosures
	Terms		Nonaccrual		and Defaults		Terms		Nonaccrual		and Defaults
	Amortized		Amortized		Amortized		Amortized		Amortized		Amortized
(Dollars in thousands)	Cost		Cost		Cost		Cost		Cost		Cost
Interest rate reduction
Commercial non-owner-occupied	$	15,045	$	—	$	—	$	—	$	—	$	—
Commercial owner-occupied real estate		332		—		—		—		—		—
Commercial and industrial		378		—		—		—		—		—
Consumer owner-occupied		—		—		482		1,320		—		—
Total interest rate reductions	$	15,755	$	—	$	482	$	1,320	$	—	$	—

Term extension
Construction and land development	$	286	$	—	$	—	$	—	$	—	$	—
Commercial owner-occupied real estate		—		—		—		11,050		—		—
Consumer owner-occupied		5,876		—		298		1,047		—		—
Commercial and industrial		9,245		—		—		20,529		—		—
Total term extensions	$	15,407	$	—	$	298	$	32,626	$	—	$	—
Other-than-insignificant payment delay
Commercial owner-occupied real estate	$	6,087	$	—	$	—	$	—	$	—	$	—
Commercial and industrial		1,610		—		—		—		—		—
Total payment delays	$	7,697	$	—	$	—	$	—	$	—	$	—

Term Extension and Interest Rate Reduction
Consumer owner-occupied	$	1,220	$	—	$	—	$	—	$	—	$	—
Total term extension and interest rate combinations	$	1,220	$	—	$	—	$	—	$	—	$	—

Term Extension and Payment Delay
Commercial and industrial	$	1,177	$	—	$	—	$	—	$	—	$	—
Total term extension and payment delay combinations	$	1,177	$	—	$	—	$	—	$	—	$	—
	$	41,256	$	—	$	780	$	33,946	$	—	$	—

The following table depicts the performance of loans modified within the previous twelve months to borrowers experiencing financial difficulty, as of June 30, 2025 and 2024:


	June 30, 2025						June 30, 2024
	Payment Status (Amortized Cost Basis)						Payment Status (Amortized Cost Basis)
			30-89 Days		90+ Days				30-89 Days		90+ Days
(Dollars in thousands)	Current		Past Due		Past Due		Current		Past Due		Past Due
Construction and land development	$	286	$	—	$	—	$	—	$	—	$	—
Commercial non-owner-occupied		15,045		—		—		—		—		—
Commercial owner-occupied real estate		6,418		—		—		11,050		—		—
Consumer owner-occupied		6,740		655		482		1,445		922		—
Commercial and industrial		12,410		—		—		20,529		—		—
Total	$	40,899	$	655	$	482	$	33,024	$	922	$	—