v3.25.2
LOANS AND ALLOWANCE FOR CREDIT LOSSES
 6 Months Ended
Jun. 30, 2025
Receivables [Abstract]  
LOANS AND ALLOWANCE FOR CREDIT LOSSES
NOTE 3 – LOANS AND ALLOWANCE FOR CREDIT LOSSES

Loans are stated at amortized cost. Balances within the major loans receivable categories are presented in the following table:

(dollars in thousands)June 30, 2025December 31, 2024
Commercial and industrial$3,184,211 $2,953,135 
Consumer209,990 221,735 
Mortgage warehouse1,092,475 965,053 
Municipal436,759 441,408 
Premium finance1,294,293 1,155,614 
Real estate – construction and development1,485,842 1,998,506 
Real estate – commercial and farmland8,877,750 8,445,958 
Real estate – residential4,460,177 4,558,497 
Loans, net of unearned income$21,041,497 $20,739,906 

Accrued interest receivable on loans totaling $75.5 million and $77.3 million at June 30, 2025 and December 31, 2024, respectively, is reported in other assets on the consolidated balance sheets. The Company had no recorded allowance for credit losses related to accrued interest on loans at both June 30, 2025 and December 31, 2024.

Nonaccrual and Past-Due Loans

A loan is placed on nonaccrual status when, in management’s judgment, the collection of the interest income appears doubtful. Interest receivable that has been accrued and is subsequently determined to have doubtful collectability is charged to interest income. Interest on loans that are classified as nonaccrual is subsequently applied to principal until the loans are returned to accrual status. The Company’s loan policy states that a nonaccrual loan may be returned to accrual status when (i) none of its principal and interest is due and unpaid, and the Company expects repayment of the remaining contractual principal and interest, or (ii) it otherwise becomes well secured and in the process of collection. Restoration to accrual status on any given loan must be supported by a well-documented credit evaluation of the borrower’s financial condition and the prospects for full repayment, approved by the Company’s Chief Credit Officer. Past-due loans are loans whose principal or interest is past due 30 days or more. In some cases, where borrowers are experiencing financial difficulties, loans may be restructured to provide terms significantly different from the original contractual terms.

The following table presents an analysis of loans accounted for on a nonaccrual basis:

(dollars in thousands)June 30, 2025December 31, 2024
Commercial and industrial$16,401 $11,875 
Consumer 1,119 782 
Real estate – construction and development1,559 3,718 
Real estate – commercial and farmland9,252 11,960 
Real estate – residential(1)
58,688 73,883 
$87,019 $102,218 
(1) Included in real estate - residential were $11.7 million and $12.0 million of serviced GNMA-guaranteed nonaccrual loans at June 30, 2025 and December 31, 2024, respectively.

Interest income recognized on nonaccrual loans during the six months ended June 30, 2025 and 2024 was not material.
The following table presents an analysis of nonaccrual loans with no related allowance for credit losses:

(dollars in thousands)June 30, 2025December 31, 2024
Commercial and industrial$4,083 $3,866 
Real estate – construction and development581 2,624 
Real estate – commercial and farmland5,501 9,357 
Real estate – residential25,254 36,512 
$35,419 $52,359 

The following table presents an analysis of past-due loans as of June 30, 2025 and December 31, 2024:

(dollars in thousands)Loans
30-59
Days Past
Due		Loans
60-89
Days
Past Due		Loans 90
or More
Days Past
Due		Total
Loans
Past Due		Current
Loans		Total
Loans		Loans 90
Days or
More Past
Due and
Still
Accruing
June 30, 2025       
Commercial and industrial$7,134 $6,912 $12,396 $26,442 $3,157,769 $3,184,211 $2 
Consumer 1,009 332 478 1,819 208,171 209,990 — 
Mortgage warehouse— — — — 1,092,475 1,092,475 — 
Municipal— — — — 436,759 436,759 — 
Premium finance11,511 6,437 8,340 26,288 1,268,005 1,294,293 8,340 
Real estate – construction and development5,447 53 1,508 7,008 1,478,834 1,485,842 — 
Real estate – commercial and farmland1,251 3,955 6,420 11,626 8,866,124 8,877,750 — 
Real estate – residential49,751 20,913 56,184 126,848 4,333,329 4,460,177 73 
Total$76,103 $38,602 $85,326 $200,031 $20,841,466 $21,041,497 $8,415 
December 31, 2024       
Commercial and industrial$12,300 $5,908 $12,849 $31,057 $2,922,078 $2,953,135 $5,159 
Consumer 2,672 557 319 3,548 218,187 221,735 — 
Mortgage warehouse— — — — 965,053 965,053 — 
Municipal— — — — 441,408 441,408 — 
Premium finance15,068 6,315 12,485 33,868 1,121,746 1,155,614 12,485 
Real estate – construction and development23,102 461 3,786 27,349 1,971,157 1,998,506 89 
Real estate – commercial and farmland6,787 2,435 5,980 15,202 8,430,756 8,445,958 — 
Real estate – residential47,020 15,864 71,070 133,954 4,424,543 4,558,497 — 
Total$106,949 $31,540 $106,489 $244,978 $20,494,928 $20,739,906 $17,733 

Collateral-Dependent Loans

Collateral-dependent loans are loans where repayment is expected to be provided substantially through the operation or sale of the collateral when the borrower is experiencing financial difficulty. If the Company determines that foreclosure is probable, these loans are written down to the lower of cost or fair value of the collateral less estimated costs to sell. When repayment is expected to be from the operation of the collateral, the allowance for credit losses is calculated as the amount by which the amortized cost basis of the financial asset exceeds the present value of expected cash flows from the operation of the collateral. The Company may, in the alternative, measure the allowance for credit loss as the amount by which the amortized cost basis of the financial asset exceeds the estimated fair value of the collateral.
The following table presents an analysis of individually evaluated collateral-dependent financial assets and related allowance for credit losses:

June 30, 2025December 31, 2024
(dollars in thousands)BalanceAllowance for Credit LossesBalanceAllowance for Credit Losses
Commercial and industrial$8,718 $903 $9,451 $1,072 
Premium finance1,501 90 2,165 130 
Real estate – construction and development917 92 2,979 110 
Real estate – commercial and farmland7,826 272 10,882 149 
Real estate – residential16,775 1,890 23,983 2,302 
$35,737 $3,247 $49,460 $3,763 

Credit Quality Indicators

The Company uses a five category risk grading system to assign a risk grade to each loan in the portfolio. The following is a description of the general characteristics of the grades:

Pass – This grade represents acceptable credit risk to the Company based on factors including creditworthiness of the borrower, current performance and nature of the collateral.

Other Assets Especially Mentioned ("Special Mention") – This grade includes loans that exhibit potential weaknesses that deserve management’s close attention. If left uncorrected, these weaknesses may result in deterioration of the repayment prospects for the asset or in the Company’s credit position at some future date.

Substandard – This grade represents loans which are inadequately protected by the current creditworthiness and paying capacity of the borrower or of the collateral pledged, if any. These assets exhibit a well-defined weakness or are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. These weaknesses may be characterized by past due performance, operating losses or questionable collateral values.

Doubtful – This grade includes loans which exhibit all of the characteristics of a substandard loan with the added provision that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable or improbable.

Loss – This grade is assigned to loans which are considered uncollectible and of such little value that their continuance as active assets of the Bank is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing it off.

The following tables present the loan portfolio's amortized cost by class of financing receivable, risk grade and year of origination (in thousands) as of June 30, 2025 and December 31, 2024. Generally, current period renewals of credit are underwritten again at the point of renewal and considered current period originations for purposes of the tables below. The Company had an immaterial amount of revolving loans which converted to term loans and the amortized cost basis of those loans is included in the applicable origination year. There were no loans risk graded doubtful or loss at June 30, 2025 or December 31, 2024.
As of June 30, 2025
Term Loans by Origination YearRevolving Loans Amortized Cost Basis
20252024202320222021PriorTotal
Commercial and Industrial
Risk Grade:
Pass$569,814 $756,358 $505,485 $481,722 $205,503 $87,563 $546,329 $3,152,774 
Special mention137 577 23 1,551 1,298 3,106 440 7,132 
Substandard114 1,595 7,648 3,169 6,452 4,122 1,205 24,305 
Total commercial and industrial$570,065 $758,530 $513,156 $486,442 $213,253 $94,791 $547,974 $3,184,211 
Current-period gross charge offs$330 $4,214 $6,872 $8,276 $2,061 $623 $— $22,376 
Consumer
Risk Grade:
Pass$58,484 $17,132 $13,503 $5,359 $1,567 $36,661 $74,594 $207,300 
Special mention— 8 — 11 — 56 1,038 1,113 
Substandard20 221 157 293 42 742 102 1,577 
Total consumer$58,504 $17,361 $13,660 $5,663 $1,609 $37,459 $75,734 $209,990 
Current-period gross charge offs$— $394 $215 $274 $27 $943 $— $1,853 
Mortgage Warehouse
Risk Grade:
Pass$— $— $— $— $— $— $1,092,475 $1,092,475 
Total mortgage warehouse$— $— $— $— $— $— $1,092,475 $1,092,475 
Current-period gross charge offs$— $— $— $— $— $— $— $— 
Municipal
Risk Grade:
Pass$10,525 $24,461 $8,904 $43,481 $35,960 $312,609 $819 $436,759 
Total municipal$10,525 $24,461 $8,904 $43,481 $35,960 $312,609 $819 $436,759 
Current-period gross charge offs$— $— $— $— $— $— $— $— 
Premium Finance
Risk Grade:
Pass$1,078,054 $207,260 $639 $— $— $— $— $1,285,953 
Substandard1,771 6,564 5 — — — — 8,340 
Total premium finance$1,079,825 $213,824 $644 $— $— $— $— $1,294,293 
Current-period gross charge offs$364 $4,477 $206 $1 $— $— $— $5,048 
As of June 30, 2025
Term Loans by Origination YearRevolving Loans Amortized Cost Basis
20252024202320222021PriorTotal
Real Estate – Construction and Development
Risk Grade:
Pass$283,571 $451,132 $94,550 $370,795 $178,203 $43,799 $61,663 $1,483,713 
Special mention— — — 155 — 259 — 414 
Substandard— 259 698 7 336 415 — 1,715 
Total real estate – construction and development$283,571 $451,391 $95,248 $370,957 $178,539 $44,473 $61,663 $1,485,842 
Current-period gross charge offs$— $— $— $— $— $— $— $— 
Real Estate – Commercial and Farmland
Risk Grade:
Pass$343,579 $306,682 $510,639 $2,782,777 $2,100,991 $2,630,801 $95,225 $8,770,694 
Special mention— — — 4,345 16,396 35,117 — 55,858 
Substandard9,000 — 1,542 17,644 2,931 19,981 100 51,198 
Total real estate – commercial and farmland$352,579 $306,682 $512,181 $2,804,766 $2,120,318 $2,685,899 $95,325 $8,877,750 
Current-period gross charge offs$— $— $— $— $— $— $— $— 
Real Estate - Residential
Risk Grade:
Pass$127,024 $169,242 $578,600 $1,235,516 $1,003,500 $952,228 $325,110 $4,391,220 
Special mention— — 9 49 15 1,580 507 2,160 
Substandard— 4,399 8,920 13,578 7,811 24,411 7,678 66,797 
Total real estate - residential$127,024 $173,641 $587,529 $1,249,143 $1,011,326 $978,219 $333,295 $4,460,177 
Current-period gross charge offs$— $— $171 $— $— $162 $— $333 
Total Loans
Risk Grade:
Pass$2,471,051 $1,932,267 $1,712,320 $4,919,650 $3,525,724 $4,063,661 $2,196,215 $20,820,888 
Special mention137 585 32 6,111 17,709 40,118 1,985 66,677 
Substandard10,905 13,038 18,970 34,691 17,572 49,671 9,085 153,932 
Total loans$2,482,093 $1,945,890 $1,731,322 $4,960,452 $3,561,005 $4,153,450 $2,207,285 $21,041,497 
Total current-period gross charge offs$694 $9,085 $7,464 $8,551 $2,088 $1,728 $— $29,610 
As of December 31, 2024
Term Loans by Origination YearRevolving Loans Amortized Cost Basis
20242023202220212020PriorTotal
Commercial and Industrial
Risk Grade:
Pass$919,301 $594,485 $523,513 $246,036 $72,397 $46,358 $512,778 $2,914,868 
Special mention892 28 1,938 1,311 777 2,960 3,319 11,225 
Substandard885 2,214 4,384 7,222 655 4,555 7,127 27,042 
Total commercial and industrial$921,078 $596,727 $529,835 $254,569 $73,829 $53,873 $523,224 $2,953,135 
Consumer
Risk Grade:
Pass$58,113 $18,575 $8,684 $2,371 $17,405 $31,962 $83,143 $220,253 
Special mention8 — 14 — 9 61 — 92 
Substandard113 206 81 48 179 648 115 1,390 
Total consumer$58,234 $18,781 $8,779 $2,419 $17,593 $32,671 $83,258 $221,735 
Mortgage Warehouse
Risk Grade:
Pass$— $— $— $— $— $— $965,053 $965,053 
Total mortgage warehouse$— $— $— $— $— $— $965,053 $965,053 
Municipal
Risk Grade:
Pass$20,133 $9,094 $44,482 $36,468 $139,046 $191,559 $626 $441,408 
Total municipal$20,133 $9,094 $44,482 $36,468 $139,046 $191,559 $626 $441,408 
Premium Finance
Risk Grade:
Pass$1,141,370 $1,648 $28 $83 $— $— $— $1,143,129 
Substandard12,001 483 1 — — — — 12,485 
Total premium finance$1,153,371 $2,131 $29 $83 $— $— $— $1,155,614 
Real Estate – Construction and Development
Risk Grade:
Pass$523,704 $245,526 $835,742 $245,091 $3,619 $73,816 $66,449 $1,993,947 
Special mention— — 160 65 — 275 — 500 
Substandard— 151 3,020 337 — 551 — 4,059 
Total real estate – construction and development$523,704 $245,677 $838,922 $245,493 $3,619 $74,642 $66,449 $1,998,506 
Real Estate – Commercial and Farmland
Risk Grade:
Pass$330,472 $456,486 $2,373,426 $2,173,060 $990,712 $1,866,277 $113,916 $8,304,349 
Special mention— — 3,069 14,844 14,706 63,717 — 96,336 
Substandard— 1,551 16,979 3,855 12,730 10,158 — 45,273 
Total real estate – commercial and farmland$330,472 $458,037 $2,393,474 $2,191,759 $1,018,148 $1,940,152 $113,916 $8,445,958 
As of December 31, 2024
Term Loans by Origination YearRevolving Loans Amortized Cost Basis
20242023202220212020PriorTotal
Real Estate - Residential
Risk Grade:
Pass$193,939 $628,098 $1,291,666 $1,046,164 $460,887 $561,386 $292,193 $4,474,333 
Special mention— 10 52 16 157 1,375 1,173 2,783 
Substandard2,718 9,880 14,040 9,885 10,603 26,236 8,019 81,381 
Total real estate - residential$196,657 $637,988 $1,305,758 $1,056,065 $471,647 $588,997 $301,385 $4,558,497 
Total Loans
Risk Grade:
Pass$3,187,032 $1,953,912 $5,077,541 $3,749,273 $1,684,066 $2,771,358 $2,034,158 $20,457,340 
Special mention900 38 5,233 16,236 15,649 68,388 4,492 110,936 
Substandard15,717 14,485 38,505 21,347 24,167 42,148 15,261 171,630 
Total loans$3,203,649 $1,968,435 $5,121,279 $3,786,856 $1,723,882 $2,881,894 $2,053,911 $20,739,906 

Allowance for Credit Losses on Loans

The allowance for credit losses represents an allowance for expected losses over the remaining contractual life of the assets. The contractual term does not consider extensions, renewals or modifications. The Company segregates the loan portfolio by type of loan and utilizes this segregation in evaluating exposure to risks within the portfolio.

Loan losses are charged against the allowance when management believes the collection of a loan’s principal is unlikely. Subsequent recoveries are credited to the allowance. Consumer loans are charged off in accordance with the Federal Financial Institutions Examination Council’s (the “FFIEC”) Uniform Retail Credit Classification and Account Management Policy. Commercial loans are charged off when they are deemed uncollectible, which usually involves a triggering event within the collection effort. If the loan is collateral dependent, the loss is more easily identified and is charged off when it is identified, usually based upon receipt of an appraisal. However, when a loan has guarantor support, the Company may carry the estimated loss as a reserve against the loan while collection efforts with the guarantor are pursued. If, after collection efforts with the guarantor are complete, the deficiency is still considered uncollectible, the loss is charged off and any further collections are treated as recoveries. In all situations, when a loan is downgraded to an Asset Quality Rating of Loss, the uncollectible portion is charged off.

The Company’s methodologies for estimating the allowance for credit losses consider available relevant information about the collectability of cash flows, including information about past events, current conditions, and reasonable and supportable forecasts. The methodologies apply historical loss information, adjusted for asset-specific characteristics, economic conditions at the measurement date, and forecasts about future economic conditions expected to exist through the contractual lives of the financial assets that are reasonable and supportable, to the identified pools of loans with similar risk characteristics for which the historical loss experience was observed. The Company utilizes a one year reasonable and supportable forecast period. The Company’s methodologies revert back to historical loss information on a straight-line basis over four quarters after the reasonable and supportable forecast period.

During the six months ended June 30, 2025, the allowance for credit losses increased due to the current economic forecast, an increase in the office portfolio qualitative factor and organic loan growth, partially offset by a change in the mix of loans. The allowance for credit losses was determined at June 30, 2025 using an equal weighting of two economic forecasts from Moody's in order to align with management's best estimate over the reasonable and supportable forecast period. The Moody's baseline and downside 75th percentile S-2 scenarios were equally weighted. The allowance for credit losses was determined at December 31, 2024 using the Moody's baseline scenario economic forecast weighted at 75% and the downside 75th percentile S-2 scenario was weighted at 25%. The current forecast reflects, among other things, increases in unemployment and commercial real estate vacancies, along with a decline in GDP compared with the forecast at December 31, 2024.
The following tables detail activity and end of period balances in the allowance for credit losses by portfolio segment for the periods indicated. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

Three Months Ended June 30, 2025
(dollars in thousands)Commercial and IndustrialConsumerMortgage WarehouseMunicipalPremium FinanceReal Estate – Construction and Development
Balance, March 31, 2025$82,621 $6,145 $1,824 $57 $682 $69,086 
Provision for loan losses12,345 1,090 456 1 567 (21,785)
Loans charged off(10,517)(913)— — (2,719)— 
Recoveries of loans previously charged off4,536 251 — — 2,253 5 
Balance, June 30, 2025$88,985 $6,573 $2,280 $58 $783 $47,306 
Real Estate –
Commercial and
Farmland		Real Estate –
Residential		Total
Balance, March 31, 2025$118,392 $66,748 $345,555 
Provision for loan losses9,335 1,101 3,110 
Loans charged off— (77)(14,226)
Recoveries of loans previously charged off67 16 7,128 
Balance, June 30, 2025$127,794 $67,788 $341,567 
Six Months Ended June 30, 2025
(dollars in thousands)Commercial
and Industrial		ConsumerMortgage WarehouseMunicipalPremium FinanceReal Estate – Construction and Development
Balance, December 31, 2024$87,242 $7,327 $2,262 $58 $736 $60,421 
Provision for loan losses15,733 553 18 — 762 (13,124)
Loans charged off(22,376)(1,853)— — (5,048)— 
Recoveries of loans previously charged off8,386 546 — — 4,333 9 
Balance, June 30, 2025$88,985 $6,573 $2,280 $58 $783 $47,306 
Real Estate –
Commercial and
Farmland		Real Estate –
Residential		Total
Balance, December 31, 2024$118,377 $61,661 $338,084 
Provision for loan losses9,315 6,372 19,629 
Loans charged off— (333)(29,610)
Recoveries of loans previously charged off102 88 13,464 
Balance, June 30, 2025$127,794 $67,788 $341,567 
Three Months Ended June 30, 2024
(dollars in thousands)Commercial and IndustrialConsumerMortgage WarehouseMunicipalPremium FinanceReal Estate – Construction and Development
Balance, March 31, 2024$63,804 $3,939 $1,823 $63 $616 $72,168 
Provision for loan losses10,869 114 319 (3)594 5,269 
Loans charged off(12,539)(965)— — (2,802)— 
Recoveries of loans previously charged off4,408 391 — — 2,294 45 
Balance, June 30, 2024$66,542 $3,479 $2,142 $60 $702 $77,482 
Real Estate –
Commercial and
Farmland		Real Estate –
Residential		Total
Balance, March 31, 2024$110,656 $66,954 $320,023 
Provision for loan losses11,311 (3,125)25,348 
Loans charged off(513)(26)(16,845)
Recoveries of loans previously charged off509 45 7,692 
Balance, June 30, 2024$121,963 $63,848 $336,218 
Six Months Ended June 30, 2024
(dollars in thousands)Commercial
and Industrial		ConsumerMortgage WarehouseMunicipalPremium FinanceReal Estate – Construction and Development
Balance, December 31, 2023$64,053 $3,952 $1,678 $345 $602 $61,017 
Provision for loan losses23,016 880 464 (285)163 16,417 
Loans charged off(27,834)(2,121)— — (4,808)— 
Recoveries of loans previously charged off7,307 768 — — 4,745 48 
Balance, June 30, 2024$66,542 $3,479 $2,142 $60 $702 $77,482 
Real Estate –
Commercial and
Farmland		Real Estate –
Residential		Total
Balance, December 31, 2023$110,097 $65,356 $307,100 
Provision for loan losses11,785 (1,569)50,871 
Loans charged off(513)(26)(35,302)
Recoveries of loans previously charged off594 87 13,549 
Balance, June 30, 2024$121,963 $63,848 $336,218 

Modifications to Borrowers Experiencing Financial Difficulty

The Company periodically provides modifications to borrowers experiencing financial difficulty. These modifications include either payment deferrals, term extensions, interest rate reductions, principal forgiveness or combinations of modification types. The determination of whether the borrower is experiencing financial difficulty is made on the date of the modification. When principal forgiveness is provided, the amount of principal forgiveness is charged off against the allowance for credit losses with a corresponding reduction in the amortized cost basis of the loan.
The following table shows the amortized cost basis 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
(dollars in thousands)Payment DeferralTerm ExtensionCombination Payment Deferral and Rate ReductionCombination Payment Deferral and Term ExtensionCombination of Term Extension and Rate ReductionTotalPercentage of Total Class of Financial Receivable
Commercial and industrial$— $5,871 $— $— $— $5,871 0.2 %
Real estate – commercial and farmland— 700 — 329 — 1,029 — %
Real estate – residential548 2,199 506 — 615 3,868 0.1 %
Total$548 $8,770 $506 $329 $615 $10,768 0.1 %
Six Months Ended June 30, 2025
(dollars in thousands)Payment DeferralTerm ExtensionCombination Payment Deferral and Rate ReductionCombination Payment Deferral and Term ExtensionCombination of Term Extension and Rate ReductionTotalPercentage of Total Class of Financial Receivable
Commercial and industrial$— $5,871 $— $— $— $5,871 0.2 %
Real estate – commercial and farmland2,357 700 — 9,690 — 12,747 0.1 %
Real estate – residential1,111 3,533 506 — 1,298 6,448 0.1 %
Total$3,468 $10,104 $506 $9,690 $1,298 $25,066 0.1 %

Three Months Ended June 30, 2024
(dollars in thousands)Payment DeferralTerm ExtensionInterest Rate ReductionCombination of Term Extension and Rate ReductionTotalPercentage of Total Class of Financial Receivable
Commercial and industrial$625 $— $— $— $625 — %
Real estate – residential— 2,567 503 808 3,878 0.1 %
Total$625 $2,567 $503 $808 $4,503 — %

Six Months Ended June 30, 2024
(dollars in thousands)Payment DeferralTerm ExtensionInterest Rate ReductionCombination of Term Extension and Rate ReductionTotalPercentage of Total Class of Financial Receivable
Commercial and industrial$625 $— $— $— $625 — %
Real estate – residential— 6,093 503 1,341 7,937 0.2 %
Total$625 $6,093 $503 $1,341 $8,562 — %

The Company had unfunded commitments to borrowers experiencing financial difficulty for which the Company has modified their loans of $2.0 million and $179,000 at June 30, 2025 and December 31, 2024, respectively.

The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty during the three and six months ended June 30, 2025 and 2024, respectively:
Three Months Ended June 30, 2025
Loan TypeFinancial Effect
Payment Deferral
Real estate – residential
Payments were deferred for 8 months
Term Extension
Commercial and industrial
Maturity dates were extended for a weighted average of 13 months
Real estate – commercial and farmland
Maturity dates were extended for a weighted average of 9 months
Real estate – residential
Maturity dates were extended for a weighted average of 95 months
Combination Payment Deferral and Term Extension
Real estate – commercial and farmland
Maturity dates were extended for a weighted average 9 months and payments were deferred for 9 months
Combination Term Extension and Rate Reduction
Real estate – residential
Maturity dates were extended for a weighted average 7 months and rate was reduced by a weighted average 1.50%
Combination Payment Deferral and Rate Reduction
Real estate – residential
Payments were deferred for 10 months and rate was reduced by a weighted average 0.43%

Six Months Ended June 30, 2025
Loan TypeFinancial Effect
Payment Deferral
Real estate – commercial and farmland
Payments were deferred for a weighted average of 9 months
Real estate – residential
Payments were deferred for a weighted average of 9 months
Term Extension
Commercial and industrial
Maturity dates were extended for a weighted average of 13 months
Real estate – commercial and farmland
Maturity dates were extended for a weighted average of 9 months
Real estate – residential
Maturity dates were extended for a weighted average of 90 months
Combination Payment Deferral and Term Extension
Real estate – commercial and farmland
Maturity dates were extended for a weighted average 3 months and payments were deferred for 12 months
Combination Term Extension and Rate Reduction
Real estate – residential
Maturity dates were extended for a weighted average 37 months and rate was reduced by a weighted average 0.68%
Combination Payment Deferral and Rate Reduction
Real estate – residential
Payments were deferred for 7 months and rate was reduced by a weighted average 1.50%
Three Months Ended June 30, 2024
Loan TypeFinancial Effect
Interest Rate Reduction
Real estate – residential
Rate was reduced by 1.625%
Payment Deferral
Commercial and industrial
Payments were deferred for 16 months
Term Extension
Real estate – residential
Maturity dates were extended for a weighted average of 87 months
Combination Term Extension and Rate Reduction
Real estate – residential
Maturity dates were extended for a weighted average 97 months and rate was reduced by a weighted average 3.75%

Six Months Ended June 30, 2024
Loan TypeFinancial Effect
Interest Rate Reduction
Real estate – residential
Rate was reduced by 1.625%
Payment Deferral
Commercial and industrial
Payments were deferred for 16 months
Term Extension
Real estate – residential
Maturity dates were extended for a weighted average of 81 months
Combination Term Extension and Rate Reduction
Real estate – residential
Maturity dates were extended for a weighted average 112 months and rate was reduced by a weighted average 2.86%

The Company monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table depicts the performance of loans that have been modified in the last 12 months:

As of June 30, 2025

(dollars in thousands)
Current30-59
Days Past Due		60-89
Days Past Due		90 or More Days Past DueTotal
Commercial and industrial$6,426 $— $— $— $6,426 
Real estate – commercial and farmland13,332 — — — 13,332 
Real estate – residential8,247 3,141 3,831 2,883 18,102 
Total$28,005 $3,141 $3,831 $2,883 $37,860 

As of June 30, 2024

(dollars in thousands)
Current30-59
Days Past Due		60-89
Days Past Due		90 or More Days Past DueTotal
Commercial and industrial$3,667 $— $— $— $3,667 
Real estate – commercial and farmland3,462 — — — 3,462 
Real estate – residential10,463 1,711 1,036 1,259 14,469 
Total$17,592 $1,711 $1,036 $1,259 $21,598 
The following table provides the amortized cost basis of financing receivables that had a payment default during the three months ended June 30, 2025 and were modified in the 12 months before default to borrowers experiencing financial difficulty.

(dollars in thousands)Interest Rate ReductionTerm ExtensionPayment DeferralCombination of Term Extension and Rate ReductionCombination Payment Deferral and Rate ReductionTotal
Real estate – residential$499 $4,202 $563 $4,086 $506 $9,856 
Total$499 $4,202 $563 $4,086 $506 $9,856 

The following table provides the amortized cost basis of financing receivables that had a payment default during the six months ended June 30, 2025 and were modified in the 12 months before default to borrowers experiencing financial difficulty.

(dollars in thousands)Interest Rate ReductionTerm ExtensionPayment DeferralCombination of Term Extension and Rate ReductionCombination Payment Deferral and Rate ReductionTotal
Real estate – residential$499 $4,862 $563 $4,086 $506 $10,516 
Total$499 $4,862 $563 $4,086 $506 $10,516 

The following table provides the amortized cost basis of financing receivables that had a payment default during three months ended June 30, 2024 and were modified in the 12 months before default to borrowers experiencing financial difficulty.
(dollars in thousands)Term ExtensionCombination of Term Extension and Rate ReductionTotal
Real estate – residential$3,337 $456 $3,793 
Total$3,337 $456 $3,793 

The following table provides the amortized cost basis of financing receivables that had a payment default during six months ended June 30, 2024 and were modified in the 12 months before default to borrowers experiencing financial difficulty.

(dollars in thousands)Term ExtensionCombination of Term Extension and Rate ReductionTotal
Real estate – residential$3,337 $456 $3,793 
Total$3,337 $456 $3,793