v3.25.4
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)
 12 Months Ended
Dec. 31, 2025
Receivables [Abstract]  
Schedule of Loans Held for Sale
The following table presents loans held for sale:
(Dollars in thousands)December 31, 2025December 31, 2024
1-4 family residential$459 $1,167 
Commercial— 5 
Total loans held for sale$459 $1,172 
Schedule of Amortized Cost and Unpaid Principal for Loans Held for Investment
The following table presents the amortized cost and unpaid principal for loans held for investment:
December 31, 2025December 31, 2024
(Dollars in thousands)Amortized CostUnpaid
Principal		DifferenceAmortized CostUnpaid
Principal		Difference
Commercial real estate$730,435 $730,533 $(98)$777,689 $777,980 $(291)
Construction, land development, land224,214 224,414 (200)203,804 204,268 (464)
1-4 family residential properties193,508 192,322 1,186 154,020 153,711 309 
Farmland43,433 43,474 (41)56,366 56,450 (84)
Commercial1,163,664 1,173,373 (9,709)1,119,245 1,120,551 (1,306)
Factored receivables1,462,900 1,465,854 (2,954)1,204,510 1,208,486 (3,976)
Consumer16,819 16,833 (14)8,000 8,005 (5)
Mortgage warehouse1,156,334 1,156,334 — 1,023,326 1,023,326 — 
Total4,991,307 $5,003,137 $(11,830)4,546,960 $4,552,777 $(5,817)
Allowance for credit losses(36,511)(40,714)
$4,954,796 $4,506,246 
Schedule of Allowance for Loan and Lease Losses The activity in the allowance for credit losses (“ACL”) related to loans held for investment is as follows:
(Dollars in thousands)Beginning
Balance		Credit Loss Expense (Benefit)Charge-offsRecoveriesInitial ACL on Loans Purchased with Credit DeteriorationEnding
Balance
Year ended December 31, 2025
Commercial real estate$3,825 $1,020 $(203)$71 $— $4,713 
Construction, land development, land2,873 300 (250)47 — 2,970 
1-4 family residential properties1,404 584 (104)43 — 1,927 
Farmland386 (88)— — — 298 
Commercial21,419 (2,015)(25,146)9,909 10,780 14,947 
Factored receivables9,600 2,611 (6,637)4,495 — 10,069 
Consumer185 682 (585)147 — 429 
Mortgage warehouse1,022 136 — — — 1,158 
$40,714 $3,230 $(32,925)$14,712 $10,780 $36,511 
(Dollars in thousands)Beginning
Balance		Credit Loss Expense (Benefit)Charge-offsRecoveriesInitial ACL on Loans Purchased with Credit DeteriorationEnding Balance
Year ended December 31, 2024
Commercial real estate$6,030 $(1,749)$(831)$375 $— $3,825 
Construction, land development, land965 1,907 — 1 — 2,873 
1-4 family residential properties927 544 (72)5 — 1,404 
Farmland442 (56)— — — 386 
Commercial14,060 13,443 (6,218)134 — 21,419 
Factored receivables11,896 3,812 (7,186)1,078 — 9,600 
Consumer171 408 (483)89 — 185 
Mortgage warehouse728 294 — — — 1,022 
 $35,219 $18,603 $(14,790)$1,682 $— $40,714 
(Dollars in thousands)Beginning
Balance		Credit Loss Expense (Benefit)Charge-offsRecoveriesInitial ACL on Loans Purchased with Credit DeteriorationEnding
Balance
Year ended December 31, 2023
Commercial real estate$4,459 $1,593 $(108)$86 $— $6,030 
Construction, land development, land1,155 (195)— 5 — 965 
1-4 family residential properties838 82 (5)12 — 927 
Farmland483 (41)— — — 442 
Commercial15,918 7,712 (9,804)234 — 14,060 
Factored receivables19,121 2,961 (10,997)811 — 11,896 
Consumer175 44 (563)515 — 171 
Mortgage warehouse658 70 — — — 728 
$42,807 $12,226 $(21,477)$1,663 $— $35,219 
Schedule of Individual and Collective Allowance for Credit Losses on Financing Receivables and Loan Balances
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:
(Dollars in thousands)Real EstateAccounts
Receivable		EquipmentOtherTotalACL
Allocation
December 31, 2025
Commercial real estate$25,162 $— $— $— $25,162 $— 
Construction, land development, land— — — — — — 
1-4 family residential1,827 — — — 1,827 — 
Farmland1,177 — 55 138 1,370 — 
Commercial173 — 40,647 4,627 45,447 1,708 
Factored receivables— 4,650 — — 4,650 2,578 
Consumer— — — 12 12 — 
Mortgage warehouse— — — — — — 
Total$28,339 $4,650 $40,702 $4,777 $78,468 $4,286 
(Dollars in thousands)Real EstateAccounts
Receivable		EquipmentOtherTotalACL
Allocation
December 31, 2024
Commercial real estate$30,042 $— $— $4,211 $34,253 $28 
Construction, land development, land2,410 — — — 2,410 — 
1-4 family residential810 — — — 810 47 
Farmland1,870 — 73 53 1,996 — 
Commercial2,196 — 52,364 18,819 73,379 9,294 
Factored receivables— 32,773 — — 32,773 3,993 
Consumer— — — 116 116 — 
Mortgage warehouse— — — — — — 
Total$37,328 $32,773 $52,437 $23,199 $145,737 $13,362 
Schedule of Contractually Past Due and Nonaccrual Loans
The following tables present an aging of contractually past due loans:
(Dollars in thousands)Past Due
30-59 Days		Past Due
60-90 Days		Past Due 90
Days or More		Total Past DueCurrentTotalPast Due 90
Days or More
Still Accruing
December 31, 2025
Commercial real estate$40,346 $688 $6,851 $47,885 $682,550 $730,435 $— 
Construction, land development, land— — — — 224,214 224,214 — 
1-4 family residential properties370 1,138 1,489 2,997 190,511 193,508 — 
Farmland218 — — 218 43,215 43,433 — 
Commercial31,105 6,798 13,299 51,202 1,112,462 1,163,664 1,178 
Factored receivables25,876 6,334 1,347 33,557 1,429,343 1,462,900 1,347 
Consumer14 9 — 23 16,796 16,819 — 
Mortgage warehouse— — — — 1,156,334 1,156,334 — 
$97,929 $14,967 $22,986 $135,882 $4,855,425 $4,991,307 $2,525 
(Dollars in thousands)Past Due
30-59 Days		Past Due
60-90 Days		Past Due 90
Days or More		Total Past DueCurrentTotalPast Due 90
Days or More
Still Accruing
December 31, 2024
Commercial real estate$840 $3,404 $10,363 $14,607 $763,082 $777,689 $— 
Construction, land development, land— 2,410 — 2,410 201,394 203,804 — 
1-4 family residential properties1,188 631 229 2,048 151,972 154,020 — 
Farmland601 140 150 891 55,475 56,366 — 
Commercial7,525 16,150 51,437 75,112 1,044,133 1,119,245 — 
Factored receivables24,828 4,193 24,718 53,739 1,150,771 1,204,510 24,718 
Consumer33 11 — 44 7,956 8,000 — 
Mortgage warehouse— — — — 1,023,326 1,023,326 — 
$35,015 $26,939 $86,897 $148,851 $4,398,109 $4,546,960 $24,718 
Schedule of Amortized Cost Basis of Loans on Nonaccrual Status
The following table presents the amortized cost basis of loans on nonaccrual status and the amortized cost basis of loans on nonaccrual status for which there was no related allowance for credit losses:
December 31, 2025December 31, 2024
(Dollars in thousands)Total NonaccrualNonaccrual
With No ACL		Total NonaccrualNonaccrual
With No ACL
Commercial real estate$8,502 $8,502 $11,254 $10,481 
Construction, land development, land— — 2,410 2,410 
1-4 family residential1,790 1,790 810 763 
Farmland458 458 1,996 1,996 
Commercial45,446 38,224 73,437 45,405 
Factored receivables— — — — 
Consumer12 12 116 116 
Mortgage warehouse— — — — 
$56,208 $48,986 $90,023 $61,171 
Schedule of Accrued Interest on Non Accrual Loans Reversed Through Interest Income
The following table presents accrued interest on nonaccrual loans reversed through interest income:
Year Ended December 31,
(Dollars in thousands)202520242023
Commercial real estate$76 $— $17 
Construction, land development, land— 2 — 
1-4 family residential10 5 8 
Farmland13 13 57 
Commercial20 194 105 
Factored receivables— — — 
Consumer— — 4 
Mortgage warehouse— — — 
$119 $214 $191 
Schedule of Nonperforming Loans
The following table presents information regarding nonperforming loans:
(Dollars in thousands)December 31, 2025December 31, 2024
Nonaccrual loans$56,208 $90,023 
Factored receivables greater than 90 days past due1,347 23,289 
$57,555 $113,312 
Schedule of Risk Category of Loans As of December 31, 2025 and 2024, based on the most recent analysis performed, the risk category of loans is as follows:
Revolving
Loans		Revolving
Loans
Converted
To Term
Loans		Total
(Dollars in thousands)Year of Origination
December 31, 202520252024202320222021Prior
Commercial real estate
Pass$194,679 $167,423 $57,294 $32,510 $66,763 $96,283 $2,639 $841 $618,432 
Classified— — 83,865 2,696 1,301 23,453 688 — 112,003 
Total commercial real estate$194,679 $167,423 $141,159 $35,206 $68,064 $119,736 $3,327 $841 $730,435 
YTD gross charge-offs$— $— $116 $— $— $87 $— $— $203 
Construction, land development, land
Pass$14,821 $87,037 $120,397 $843 $769 $347 $— $— $224,214 
Classified— — — — — — — — — 
Total construction, land development, land$14,821 $87,037 $120,397 $843 $769 $347 $— $— $224,214 
YTD gross charge-offs$— $— $— $— $— $250 $— $— $250 
1-4 family residential
Pass$54,257 $41,135 $15,614 $11,408 $14,114 $18,889 $31,545 $2,286 $189,248 
Classified365 9 899 82 1,120 1,734 51 — 4,260 
Total 1-4 family residential$54,622 $41,144 $16,513 $11,490 $15,234 $20,623 $31,596 $2,286 $193,508 
YTD gross charge-offs$— $— $— $— $— $104 $— $— $104 
Farmland
Pass$9,001 $9,827 $4,068 $3,613 $2,330 $12,939 $458 $358 $42,594 
Classified— — — — — 839 — — 839 
Total farmland$9,001 $9,827 $4,068 $3,613 $2,330 $13,778 $458 $358 $43,433 
YTD gross charge-offs$— $— $— $— $— $— $— $— $— 
Commercial
Pass$335,153 $225,023 $82,460 $32,954 $7,901 $13,026 $417,434 $2,153 $1,116,104 
Classified4,409 1,524 10,608 5,478 956 928 23,657 — 47,560 
Total commercial$339,562 $226,547 $93,068 $38,432 $8,857 $13,954 $441,091 $2,153 $1,163,664 
YTD gross charge-offs$— $4,924 $7,950 $1,180 $276 $10,816 $— $— $25,146 
Factored receivables
Pass$1,458,558 $— $— $— $— $— $— $— $1,458,558 
Classified4,342 — — — — — — — 4,342 
Total factored receivables$1,462,900 $— $— $— $— $— $— $— $1,462,900 
YTD gross charge-offs$5,229 $1,408 $— $— $— $— $— $— $6,637 
Consumer
Pass$9,851 $1,162 $778 $226 $167 $314 $4,309 $— $16,807 
Classified— — — — — 12 — — 12 
Total consumer$9,851 $1,162 $778 $226 $167 $326 $4,309 $— $16,819 
YTD gross charge-offs$467 $81 $13 $6 $— $18 $— $— $585 
Mortgage warehouse
Pass$1,156,334 $— $— $— $— $— $— $— $1,156,334 
Classified— — — — — — — — — 
Total mortgage warehouse$1,156,334 $— $— $— $— $— $— $— $1,156,334 
YTD gross charge-offs$— $— $— $— $— $— $— $— $— 
Total loans
Pass$3,232,654 $531,607 $280,611 $81,554 $92,044 $141,798 $456,385 $5,638 $4,822,291 
Classified9,116 1,533 95,372 8,256 3,377 26,966 24,396 — 169,016 
Total loans$3,241,770 $533,140 $375,983 $89,810 $95,421 $168,764 $480,781 $5,638 $4,991,307 
YTD gross charge-offs$5,696 $6,413 $8,079 $1,186 $276 $11,275 $— $— $32,925 
Revolving
Loans		Revolving
Loans
Converted
To Term
Loans		Total
(Dollars in thousands)Year of Origination
December 31, 202420242023202220212020Prior
Commercial real estate
Pass$212,265 $77,836 $48,149 $79,860 $90,460 $28,579 $87,634 $125 $624,908 
Classified6,283 116,794 — 9,591 659 19,454 — — 152,781 
Total commercial real estate$218,548 $194,630 $48,149 $89,451 $91,119 $48,033 $87,634 $125 $777,689 
YTD gross charge-offs$— $— $352 $425 $54 $— $— $— $831 
Construction, land development, land
Pass$126,504 $67,977 $850 $950 $257 $178 $4,678 $— $201,394 
Classified— — — — — 2,410 — — 2,410 
Total construction, land development, land$126,504 $67,977 $850 $950 $257 $2,588 $4,678 $— $203,804 
YTD gross charge-offs$— $— $— $— $— $— $— $— $— 
1-4 family residential
Pass$45,087 $19,836 $13,458 $17,192 $6,326 $18,287 $32,144 $302 $152,632 
Classified113 626 100 204 — 254 91 — 1,388 
Total 1-4 family residential$45,200 $20,462 $13,558 $17,396 $6,326 $18,541 $32,235 $302 $154,020 
YTD gross charge-offs$— $— $— $— $— $72 $— $— $72 
Farmland
Pass$14,914 $6,077 $8,726 $4,334 $6,472 $12,866 $898 $73 $54,360 
Classified68 53 1,503 — 11 371 — — 2,006 
Total farmland$14,982 $6,130 $10,229 $4,334 $6,483 $13,237 $898 $73 $56,366 
YTD gross charge-offs$— $— $— $— $— $— $— $— $— 
Commercial
Pass$325,712 $125,419 $81,599 $28,177 $8,249 $8,686 $442,362 $221 $1,020,425 
Classified6,659 56,378 12,365 6,275 6,680 3 10,460 — 98,820 
Total commercial$332,371 $181,797 $93,964 $34,452 $14,929 $8,689 $452,822 $221 $1,119,245 
YTD gross charge-offs$934 $1,540 $2,209 $452 $579 $153 $351 $— $6,218 
Factored receivables
Pass$1,170,308 $— $— $— $1,429 $— $— $— $1,171,737 
Classified13,412 — — — 19,361 — — — 32,773 
Total factored receivables$1,183,720 $— $— $— $20,790 $— $— $— $1,204,510 
YTD gross charge-offs$5,628 $1,558 $— $— $— $— $— $— $7,186 
Consumer
Pass$4,242 $1,710 $587 $312 $203 $720 $110 $— $7,884 
Classified16 — 3 63 — 34 — — 116 
Total consumer$4,258 $1,710 $590 $375 $203 $754 $110 $— $8,000 
YTD gross charge-offs$— $457 $20 $5 $— $1 $— $— $483 
Mortgage warehouse
Pass$1,023,326 $— $— $— $— $— $— $— $1,023,326 
Classified— — — — — — — — — 
Total mortgage warehouse$1,023,326 $— $— $— $— $— $— $— $1,023,326 
YTD gross charge-offs$— $— $— $— $— $— $— $— $— 
Total loans
Pass$2,922,358 $298,855 $153,369 $130,825 $113,396 $69,316 $567,826 $721 $4,256,666 
Classified26,551 173,851 13,971 16,133 26,711 22,526 10,551 — 290,294 
Total loans$2,948,909 $472,706 $167,340 $146,958 $140,107 $91,842 $578,377 $721 $4,546,960 
YTD gross charge-offs$6,562 $3,555 $2,581 $882 $633 $226 $351 $— $14,790 
Schedule of Loan Modifications
The following tables present the amortized cost basis at the end of the reporting period and the financial effect of loan modifications made to borrowers experiencing financial difficulty:
Term Extension
Financial Effect
(Dollars in thousands)Amortized Cost % of PortfolioTerm Extended By
Year Ended December 31, 2025
Commercial real estate$48,650 6.7 %0.9 years
1-4 family residential20 — %5.7 years
Commercial11,443 1.0 %0.4 years
$60,113 1.2 %
Year Ended December 31, 2024
Commercial real estate$27,178 3.5 %0.5 years
Commercial9,067 0.8 %0.7 years
Consumer16 0.2 %6.1 years
$36,261 0.8 %
Year Ended December 31, 2023
Commercial real estate$415 0.1 %1.1 years
1-4 family residential271 0.2 %0.5 years
Farmland604 1.0 %0.5 years
Commercial1,548 0.1 %1.5 years
$2,838 0.1 %
Payment Delay
Financial Effect
(Dollars in thousands)Amortized Cost % of PortfolioPayments Delayed By
Year Ended December 31, 2023
Commercial$22,547 1.9 %0.6 years
$22,547 0.5 %
Term Extension and Rate Reduction
Financial Effect
Interest Rate Reduced
(Dollars in thousands)Amortized Cost % of PortfolioTerm Extended ByFromTo
Year Ended December 31, 2024
Commercial real estate$139 — %1.0 years12.5 %10.0 %
$139 — %
Year Ended December 31, 2023
Commercial real estate$83,349 10.3 %0.5 years10.1 %5.1 %
Commercial496 — %0.3 years10.5 %9.5 %
$83,845 2.0 %
Payment Delay and Rate Reduction
Financial Effect
Interest Rate Reduced
(Dollars in thousands)Amortized Cost % of PortfolioPayments Delayed ByFromTo
Year Ended December 31, 2024
Commercial real estate$23,000 3.0 %0.7 years8.7 %6.0 %
$23,000 0.5 %
Year Ended December 31, 2023
Commercial real estate$23,001 2.8 %0.8 years9.4 %6.0 %
$23,001 0.6 %
Term Extension and Principal Forgiveness
Financial Effect
(Dollars in thousands)Amortized Cost % of PortfolioTerm Extended ByPrincipal Forgiven
Year Ended December 31, 2024
Commercial4,128 0.4 %1.8 years$507 
$4,128 0.1 %
Term Extension and Payment Delay
Financial Effect
(Dollars in thousands)Amortized Cost % of PortfolioTerm Extended ByPayments Delayed By
Year Ended December 31, 2025
Commercial real estate$53,434 7.3 %1.0 year0.3 years
$53,434 1.1 %
Year Ended December 31, 2024
Commercial488 — %0.7 years0.7 years
$488 — %
The following table presents the payment status of loans that were modified in the preceding twelve months:
December 31, 2025
(Dollars in thousands)CurrentPast Due
30-89 Days		Past Due
90 Days or More		Total
Commercial real estate$63,872 $38,212 $— $102,084 
Construction, land development, land— — — — 
1-4 family residential20 — — 20 
Farmland— — — — 
Commercial10,560 883 — 11,443 
Factored receivables— — — — 
Consumer— — — — 
Mortgage warehouse— — — — 
$74,452 $39,095 $— $113,547 
December 31, 2024
(Dollars in thousands)CurrentPast Due
30-89 Days		Past Due
90 Days or More		Total
Commercial real estate$50,317 $— $— $50,317 
Construction, land development, land— — — — 
1-4 family residential— — — — 
Farmland— — — — 
Commercial13,684 — — 13,684 
Factored receivables— — — — 
Consumer16 — — 16 
Mortgage warehouse— — — — 
$64,017 $— $— $64,017 
December 31, 2023
(Dollars in thousands)CurrentPast Due
30-89 Days		Past Due
90 Days or More		Total
Commercial real estate$106,765 $— $— $106,765 
Construction, land development, land— — — — 
1-4 family residential271 — — 271 
Farmland604 — — 604 
Commercial23,838 753 — 24,591 
Factored receivables— — — — 
Consumer— — — — 
Mortgage warehouse— — — — 
$131,478 $753 $— $132,231