v3.25.2
LHI and ACL (Tables)
 6 Months Ended
Jun. 30, 2025
Receivables [Abstract]  
Schedule of Loans in the Accompanying Consolidated Balance Sheets
LHI in the accompanying consolidated balance sheets are summarized as follows:
(Dollars in thousands)June 30, 2025December 31, 2024
LHI, carried at amortized cost:
Real estate:        
Construction and land$1,142,457 $1,303,711 
Farmland31,589 31,690 
1 - 4 family residential1,086,342 957,341 
Multi-family residential718,946 750,218 
OOCRE800,881 780,003 
NOOCRE2,311,466 2,382,499 
Commercial
2,692,209 2,693,538 
MW669,052 605,411 
Consumer8,796 9,115 
$9,461,738 $9,513,526 
Deferred loan fees, net(8,698)(8,982)
ACL(112,262)(111,745)
Total LHI, net$9,340,778 $9,392,799 
Schedule of Activity in Allowance for Credit Loss The activity in the ACL related to LHI is as follows:
Three Months Ended June 30, 2025
(Dollars in thousands)Construction and LandFarmlandResidentialMultifamilyOOCRENOOCRECommercialMWConsumerTotal
Balance at beginning of the period$19,419 $100 $16,823 $4,954 $17,791 $35,491 $16,728 $371 $96 $111,773 
Credit loss expense (benefit) non-PCD loans962 (8)1,664 (750)(1,127)(497)1,653 (159)(210)1,528 
Credit loss expense PCD loans— — 65 — 157 — — — — 222 
Charge-offs— — — — — (215)(1,571)— (55)(1,841)
Recoveries— — 1 — 186 — 131 — 262 580 
Ending Balance$20,381 $92 $18,553 $4,204 $17,007 $34,779 $16,941 $212 $93 $112,262 
Three Months Ended June 30, 2024
(Dollars in thousands)Construction and LandFarmlandResidentialMultifamilyOOCRENOOCRECommercialMWConsumerTotal
Balance at beginning of the period$19,781 $107 $11,516 $6,339 $9,802 $31,137 $32,791 $404 $155 $112,032 
Credit loss expense (benefit) non-PCD loans1,113 (8)(2,310)(387)3,092 4,195 2,011 871 (418)8,159 
Credit loss expense (benefit) PCD loans— — 6 — 86 — (1)— — 91 
Charge-offs— — (31)(198)— (1,969)(5,601)— (30)(7,829)
Recoveries— — — — 120 — 361 — 497 978 
Ending Balance$20,894 $99 $9,181 $5,754 $13,100 $33,363 $29,561 $1,275 $204 $113,431 
Six Months Ended June 30, 2025
(Dollars in thousands)Construction and landFarmlandResidentialMultifamilyOOCRENOOCRECommercialMWConsumerTotal
Balance at beginning of the period$15,457 $97 $15,639 $4,849 $17,546 $39,968 $17,654 $321 $214 $111,745 
Credit loss expense (benefit) non-PCD loans4,924 (5)2,831 (645)(871)(1,884)1,621 (109)(311)5,551 
Credit loss expense (benefit) PCD loans— — 61 — 146 — (8)— — 199 
Charge-offs— — — — — (3,305)(2,489)— (267)(6,061)
Recoveries— — 22 — 186 — 163 — 457 828 
Ending Balance$20,381 $92 $18,553 $4,204 $17,007 $34,779 $16,941 $212 $93 $112,262 
Six Months Ended June 30, 2024
(Dollars in thousands)Construction and landFarmlandResidentialMultifamilyOOCRENOOCRECommercialMWConsumerTotal
Balance at beginning of the period$21,032 $101 $9,539 $4,882 $10,252 $27,729 $35,886 $260 $135 $109,816 
Credit loss (benefit) expense non-PCD loans(138)(2)(332)1,070 3,139 15,848 (125)1,015 (376)20,099 
Credit loss expense (benefit) PCD loans— — 4 — (291)(3,952)(110)— — (4,349)
Charge-offs— — (31)(198)(120)(6,262)(6,547)— (101)(13,259)
Recoveries— — 1 — 120 — 457 — 546 1,124 
Ending Balance$20,894 $99 $9,181 $5,754 $13,100 $33,363 $29,561 $1,275 $204 $113,431 
Schedule of Amortized Cost Basis of Collateral Dependent Loans The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans:
June 30, 2025December 31, 2024
(Dollars in thousands)Real PropertyACL AllocationReal PropertyACL Allocation
OOCRE$— $— $1,925 $84 
NOOCRE24,187 — — — 
Commercial1,932 402 2,873 532 
Total$26,119 $402 $4,798 $616 
Schedule of Non-Accrual Loans
Nonaccrual loans aggregated by class of loans, as of June 30, 2025 and December 31, 2024, were as follows:
 June 30, 2025December 31, 2024
(Dollars in thousands)NonaccrualNonaccrual With No ACLNonaccrualNonaccrual With No ACL
Construction and land$6,120 $6,120 $6,373 $6,373 
1 - 4 family residential1,347 1,347 1,562 1,562 
OOCRE8,789 8,789 8,887 6,962 
NOOCRE27,486 27,486 10,967 5,309 
Commercial17,550 5,336 24,680 8,935 
Consumer46 46 52 52 
Total$61,338 $49,124 $52,521 $29,193 
Schedule of Age Analysis of Past Due Loans, Aggregated by Class of Loans
An age analysis of past due loans, aggregated by class of loans and including past due nonaccrual loans, as of June 30, 2025 and December 31, 2024, is as follows:
 June 30, 2025
(Dollars in thousands)30 to 59 Days60 to 89 Days90 Days or GreaterTotal Past DueTotal CurrentTotal
Loans		Total 90 Days Past Due and Still Accruing
Real estate:                            
    Construction and land$— $613 $6,120 $6,733 $1,135,724 $1,142,457 $— 
    Farmland— — — — 31,589 31,589 — 
    1 - 4 family residential967 3,107 5,300 9,374 1,076,968 1,086,342 4,589 
    Multi-family residential— — — — 718,946 718,946 — 
    OOCRE558 698 7,249 8,505 792,376 800,881 — 
    NOOCRE10,339 635 18,085 29,059 2,282,407 2,311,466 — 
Commercial3,501 1,586 1,482 6,569 2,685,640 2,692,209 52 
MW— — — — 669,052 669,052 — 
Consumer55 20 34 109 8,687 8,796 — 
Total$15,420 $6,659 $38,270 $60,349 $9,401,389 $9,461,738 $4,641 
 December 31, 2024
(Dollars in thousands)30 to 59 Days60 to 89 Days90 Days or GreaterTotal Past DueTotal CurrentTotal
Loans		Total 90 Days Past Due and Still Accruing
Real estate:                            
Construction and land$— $— $6,373 $6,373 $1,297,338 $1,303,711 $— 
Farmland— — — — 31,690 31,690 — 
1 - 4 family residential991 1,036 2,832 4,859 952,482 957,341 1,865 
Multi-family residential— — — — 750,218 750,218 — 
OOCRE9,571 874 8,887 19,332 760,671 780,003 — 
NOOCRE14,329 1,615 9,024 24,968 2,357,531 2,382,499 — 
Commercial785 1,976 5,595 8,356 2,685,182 2,693,538 49 
MW— — — — 605,411 605,411 — 
Consumer55 6 36 97 9,018 9,115 — 
Total$25,731 $5,507 $32,747 $63,985 $9,449,541 $9,513,526 $1,914 
Schedule of Loans Modified as TDRs
The following table shows the amortized cost basis at the end of the reporting period of the loans modified to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of concession granted during the three and six months ended June 30, 2025 and 2024:
Three Months Ended June 30, 2025
Financial Impact
(Dollars in thousands)Payment DeferralCombination of payment deferral, interest rate reduction and/or term extension% of Loan ClassInterest Rate Reduction (in months)Term Extension (in Months)Payment Deferrals (in months)
Construction and land$7,694 $— 0.7%——
> 3 months
OOCRE— 1,195 0.1—
>3 months
>3 months
NOOCRE428 1,180 0.1—
>3 months
> 3 months
Commercial23,704 — 0.9——
> 3 months
Total$31,826 $2,375 
Three Months Ended June 30, 2024
Financial Impact
(Dollars in thousands)Payment Deferral% of Loan ClassPayment Deferrals (in months)
Construction and land$11,714 0.8%
> 3 months
NOOCRE1,407 0.1
> 3 months
Commercial908 —
> 3 months
Total$14,029 

Six Months Ended June 30, 2025
Financial Impact
(Dollars in thousands)Payment DeferralCombination of payment deferral, interest rate reduction and/or term extension% of Loan ClassInterest Rate Reduction (in months)Term Extension (in Months)Payment Deferrals (in months)
Construction and land$7,694 $— 0.7%——
> 3 months
OOCRE2,318 1,195 0.4—
>3 months
> 3 months
NOOCRE428 21,649 1.0
>3 months
—
> 3 months
Commercial24,254 3,631 1.0—
>3 months
> 3 months
Total$34,694 $26,475 

Six Months Ended June 30, 2024
Financial Impact
(Dollars in thousands)Interest Rate ReductionPayment DeferralCombination of payment deferral, interest rate reduction and/or term extension% of Loan ClassInterest Rate Reduction (in months)Term Extension (in Months)Payment Deferrals (in months)
Construction and land$— $11,714 $— 0.8%——
> 3 months
NOOCRE28,386 3,407 45,762 3.2
> 3 months
—
> 3 months
Commercial— 908 4,631 0.2—
> 3 months
> 3 months
Total$28,386 $16,029 $50,393 
The following table depicts the performance of loans that have been modified in the last 12 months:
June 30, 2025
Payment Status
(Dollars in thousands)Current30-59 Days Past Due60-89 Days Past Due90+ Days Past Due
Construction and land$7,694 $— $— $— 
OOCRE2,318 — — 1,195 
NOOCRE50,180 — — — 
Commercial30,915 — — — 
Total$91,107 $— $— $1,195 
June 30, 2024
Payment Status
(Dollars in thousands)Current30-59 Days Past Due60-89 Days Past Due90+ Days Past Due
Construction and land$11,714 $— $— $— 
NOOCRE76,148 — — 1,407 
Commercial21,367 — — 1,917 
Total$109,229 $— $— $3,324 
Schedule of Internal Ratings of Loans, Including Purchased Credit Impaired Loans
The Company considers the guidance in ASC 310-20 when determining whether a modification, extension or renewal of a loan constitutes a current period origination. Generally, current period renewals of credit are re-underwritten at the point of renewal and considered current period originations for purposes of the table below. Based on the most recent analysis performed, the risk category of loans by class of loans based on year or origination as of June 30, 2025 and December 31, 2024 is as follows:
 
Term Loans Amortized Cost Basis by Origination Year(1)
(Dollars in thousands)20252024202320222021PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
As of June 30, 2025
Construction and land:
Pass$50,675 $246,407 $43,768 $488,213 $16,046 $3,911 $232,609 $— $1,081,629 
Special mention— — — 25,640 — — — — 25,640 
Substandard— — 27,040 7,043 1,074 31 — — 35,188 
Total construction and land$50,675 $246,407 $70,808 $520,896 $17,120 $3,942 $232,609 $— $1,142,457 
Construction and land gross charge-offs$— $— $— $— $— $— $— $— $— 
Farmland:
Pass$993 $2,413 $2,450 $2,157 $— $21,536 $2,040 $— $31,589 
Total farmland$993 $2,413 $2,450 $2,157 $— $21,536 $2,040 $— $31,589 
Farmland gross charge-offs$— $— $— $— $— $— $— $— $— 
1 - 4 family residential:
Pass$135,746 $100,457 $90,503 $232,496 $287,085 $184,524 $51,035 $548 $1,082,394 
Special mention— — — 177 — 68 — — 245 
Substandard— — — — 811 1,387 492 — 2,690 
PCD— — — — — 1,013 — — 1,013 
Total 1 - 4 family residential$135,746 $100,457 $90,503 $232,673 $287,896 $186,992 $51,527 $548 $1,086,342 
1-4 family residential gross charge-offs$— $— $— $— $— $— $— $— $— 
Multi-family residential:
Pass$12,093 $51,041 $4,206 $245,125 $288,969 $95,199 $— $— $696,633 
Special mention— — — 21,764 — — — — 21,764 
Substandard— — — 549 — — — — 549 
Total multi-family residential$12,093 $51,041 $4,206 $267,438 $288,969 $95,199 $— $— $718,946 
Multi-family residential gross charge-offs$— $— $— $— $— $— $— $— $— 
OOCRE:
Pass$69,995 $100,397 $99,743 $160,984 $87,568 $236,011 $3,605 $— $758,303 
Special mention— — 1,620 2,874 945 3,680 — — 9,119 
Substandard— — 5,262 57 8,584 10,757 — — 24,660 
PCD— — — — — 8,799 — — 8,799 
Total OOCRE$69,995 $100,397 $106,625 $163,915 $97,097 $259,247 $3,605 $— $800,881 
OOCRE gross charge-offs$— $— $— $— $— $— $— $— $— 
NOOCRE:
Pass$105,781 $222,463 $50,477 $640,310 $535,570 $628,339 $28,863 $403 $2,212,206 
Special mention— — — 16,505 24,048 15,761 — — 56,314 
Substandard— — — 6,086 1,678 34,838 — — 42,602 
PCD— — — — — 344 — — 344 
Total NOOCRE$105,781 $222,463 $50,477 $662,901 $561,296 $679,282 $28,863 $403 $2,311,466 
NOOCRE gross charge-offs$— $— $— $1,000 $— $2,305 $— $— $3,305 
Commercial:
Pass$72,364 $154,666 $246,198 $277,267 $57,002 $77,046 $1,632,734 $2,547 $2,519,824 
Special mention5,638 10,081 8,626 32,611 — 192 21,372 — 78,520 
Substandard— 1,156 2,917 27,739 233 7,181 54,390 — 93,616 
PCD— — — — — 249 — — 249 
Total commercial$78,002 $165,903 $257,741 $337,617 $57,235 $84,668 $1,708,496 $2,547 $2,692,209 
Commercial gross charge-offs$— $— $737 $— $— $1,752 $— $— $2,489 
MW:
Pass$— $— $— $— $— $— $669,052 $— $669,052 
Total MW$— $— $— $— $— $— $669,052 $— $669,052 
MW gross charge-offs$— $— $— $— $— $— $— $— $— 
Consumer:
Pass$1,279 $1,190 $1,601 $422 $174 $1,407 $2,605 $— $8,678 
Special mention— — — — — 66 — — 66 
Substandard— — — — — 48 — — 48 
PCD— — — — — 4 — — 4 
Total consumer$1,279 $1,190 $1,601 $422 $174 $1,525 $2,605 $— $8,796 
Consumer gross charge-offs$— $— $6 $— $— $261 $— $— $267 
Total Pass$448,926 $879,034 $538,946 $2,046,974 $1,272,414 $1,247,973 $2,622,543 $3,498 $9,060,308 
Total Special Mention5,638 10,081 10,246 99,571 24,993 19,767 21,372 — 191,668 
Total Substandard— 1,156 35,219 41,474 12,380 54,242 54,882 — 199,353 
Total PCD— — — — — 10,409 — — 10,409 
Total$454,564 $890,271 $584,411 $2,188,019 $1,309,787 $1,332,391 $2,698,797 $3,498 $9,461,738 
Current period gross charge-offs$— $— $743 $1,000 $— $4,318 $— $— $6,061 
(1) Term loans amortized cost basis by origination year excludes $8,698 of deferred loan fees, net.
 
Term Loans Amortized Cost Basis by Origination Year(1)
(Dollars in thousands)20242023202220212020PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
December 31, 2024
Construction and land:
Pass$144,236 $48,138 $732,933 $103,292 $756 $4,709 $211,546 $465 $1,246,075 
Special mention— — 24,869 — — — — — 24,869 
Substandard— 25,298 6,342 1,096 31 — — — 32,767 
Total construction and land$144,236 $73,436 $764,144 $104,388 $787 $4,709 $211,546 $465 $1,303,711 
Construction and land gross charge-offs$— $— $— $— $— $— $— $— $— 
Farmland:
Pass$2,447 $2,479 $2,317 $— $17,452 $4,441 $2,554 $— $31,690 
Total farmland$2,447 $2,479 $2,317 $— $17,452 $4,441 $2,554 $— $31,690 
Farmland gross charge-offs$— $— $— $— $— $— $— $— $— 
1 - 4 family residential:
Pass$91,388 $83,605 $198,960 $343,223 $81,486 $114,086 $33,732 $4,589 $951,069 
Special mention— 2,701 — — — 65 — — 2,766 
Substandard— — 133 831 50 932 516 — 2,462 
PCD— — — — — 1,044 — — 1,044 
Total 1 - 4 family residential$91,388 $86,306 $199,093 $344,054 $81,536 $116,127 $34,248 $4,589 $957,341 
1-4 Family gross charge-offs$— $— $31 $— $— $— $— $— $31 
Multi-family residential:
Pass$48,713 $11,645 $136,014 $366,468 $169,627 $17,180 $— $13 $749,660 
Substandard— — 558 — — — — — 558 
Total multi-family residential$48,713 $11,645 $136,572 $366,468 $169,627 $17,180 $— $13 $750,218 
Multifamily gross charge-offs$— $— $— $— $— $198 $— $— $198 
OOCRE:
Pass$100,969 $106,561 $168,061 $96,427 $73,502 $173,131 $5,554 $11,681 $735,886 
Special mention— 461 4,313 967 953 6,173 — — 12,867 
Substandard— 5,338 — 6,567 4,839 5,140 — — 21,884 
PCD— — — — — 9,366 — — 9,366 
Total OOCRE$100,969 $112,360 $172,374 $103,961 $79,294 $193,810 $5,554 $11,681 $780,003 
OOCRE gross charge-offs$— $— $— $— $— $120 $— $— $120 
NOOCRE:
Pass$238,165 $59,546 $615,542 $517,432 $181,026 $536,196 $54,323 $9,620 $2,211,850 
Special mention— 12,330 8,569 24,523 11,397 20,607 — — 77,426 
Substandard— — 55,714 3,715 303 33,139 — — 92,871 
PCD— — — — — 352 — — 352 
Total NOOCRE$238,165 $71,876 $679,825 $545,670 $192,726 $590,294 $54,323 $9,620 $2,382,499 
NOOCRE gross charge-offs$— $— $3,790 $— $1,323 $6,262 $— $— $11,375 
Commercial:
Pass$533,306 $259,973 $282,571 $56,431 $11,124 $58,869 $1,389,257 $3,155 $2,594,686 
Special mention7,894 184 — 316 56 159 26,586 176 35,371 
Substandard1,087 4,285 25,025 — 469 13,068 19,244 — 63,178 
PCD— — — — — 303 — — 303 
Total commercial$542,287 $264,442 $307,596 $56,747 $11,649 $72,399 $1,435,087 $3,331 $2,693,538 
Commercial gross charge-offs$— $217 $4,943 $2,285 $— $5,947 $— $— $13,392 
MW:
Pass$— $— $— $— $— $— $605,411 $— $605,411 
Total MW$— $— $— $— $— $— $605,411 $— $605,411 
MW gross charge-offs$— $— $— $— $— $— $— $— $— 
Consumer:
Pass$2,365 $2,058 $613 $202 $368 $1,300 $2,069 $— $8,975 
Special mention— — — — — 74 — — 74 
Substandard— — — — 3 55 — — 58 
PCD— — — — — 8 — — 8 
Total consumer$2,365 $2,058 $613 $202 $371 $1,437 $2,069 $— $9,115 
Consumer gross charge-offs$420 $— $— $— $— $155 $— $— $575 
Total Pass$1,161,589 $574,005 $2,137,011 $1,483,475 $535,341 $909,912 $2,304,446 $29,523 $9,135,302 
Total Special Mention7,894 15,676 37,751 25,806 12,406 27,078 26,586 176 153,373 
Total Substandard1,087 34,921 87,772 12,209 5,695 52,334 19,760 — 213,778 
Total PCD— — — — — 11,073 — — 11,073 
Total$1,170,570 $624,602 $2,262,534 $1,521,490 $553,442 $1,000,397 $2,350,792 $29,699 $9,513,526 
Current year gross charge-offs$420 $217 $8,764 $2,285 $1,323 $12,682 $— $— $25,691 
(1) Term loans amortized cost basis by origination year excludes $8,982 of deferred loan fees, net.
Schedule of Changes in Servicing Assets A summary of the changes in the related servicing assets are as follows:
 Three Months Ended June 30,Six Months Ended June 30,
(Dollars in thousands)2025202420252024
Balance at beginning of period$11,668 $12,622 $9,921 $13,258 
Increase from loan sales562 272 3,220 907 
Servicing asset impairment, net recoveries(184)57 (44)279 
Amortization charged as a reduction to income(908)(753)(1,959)(2,246)
Balance at end of period$11,138 $12,198 $11,138 $12,198 
Schedule of Loans Held-for-Sale, Principal Sold
The following table reflects principal sold and related gain for SBA and USDA LHI. The gain on sale of these loans is recorded in government guaranteed loan income, net, in the Company’s consolidated statements of income.
Three Months Ended June 30,Six Months Ended June 30,
(Dollars in thousands)2025202420252024
SBA LHI principal sold$1,615 $1,742 $11,992 $14,975 
Gain on sale of SBA LHI110 168 967 1,344 
USDA LHI principal sold— 2,850 9,864 2,850 
Gain on sale of USDA LHI— 52 1,200 52 
Schedule of Loans Held-for-Sale
The following table reflects LHFS as of June 30, 2025 and December 31, 2024.
(Dollars in thousands)June 30, 2025December 31, 2024
SBA/USDA construction and land$21,933 $21,629 
1 - 4 family residential682 905 
SBA/USDA OOCRE23,750 36,437 
SBA NOOCRE1,493 5,028 
SBA/USDA commercial21,622 25,310 
Total LHFS$69,480 $89,309