v3.26.1
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
Schedule of Loans Held for Sale
The following table presents loans held for sale:
(Dollars in thousands)June 30, 2026December 31, 2025
1-4 family residential$1,405 $459 
Total loans held for sale$1,405 $459 
Schedule of Amortized Cost and Unpaid Principal for Loans Held for Investment
The following table presents the amortized cost and unpaid principal balance of loans held for investment:
June 30, 2026December 31, 2025
(Dollars in thousands)Amortized
Cost		Unpaid
Principal		DifferenceAmortized
Cost		Unpaid
Principal		Difference
Commercial real estate$667,520 $667,661 $(141)$730,435 $730,533 $(98)
Construction, land development, land192,091 192,260 (169)224,214 224,414 (200)
1-4 family residential 205,540 203,758 1,782 193,508 192,322 1,186 
Farmland42,909 42,935 (26)43,433 43,474 (41)
Commercial1,160,128 1,169,548 (9,420)1,163,664 1,173,373 (9,709)
Factored receivables2,135,878 2,140,986 (5,108)1,462,900 1,465,854 (2,954)
Consumer16,715 16,728 (13)16,819 16,833 (14)
Mortgage warehouse1,056,310 1,056,310 — 1,156,334 1,156,334 — 
Total loans held for investment5,477,091 $5,490,186 $(13,095)4,991,307 $5,003,137 $(11,830)
Allowance for credit losses(34,783)(36,511)
$5,442,308 $4,954,796 
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		Charge-offsRecoveriesInitial ACL on Loans Purchased with Credit DeteriorationEnding
Balance
Three Months Ended June 30, 2026
Commercial real estate$5,274 $(410)$(668)$48 $— $4,244 
Construction, land development, land2,498 420 — 1 — 2,919 
1-4 family residential1,924 210 (74)26 — 2,086 
Farmland299 2 — — — 301 
Commercial12,795 (723)(1,975)1,353 — 11,450 
Factored receivables9,827 2,872 (567)176 — 12,308 
Consumer357 114 (84)26 — 413 
Mortgage warehouse1,183 (121)— — — 1,062 
$34,157 $2,364 $(3,368)$1,630 $— $34,783 
(Dollars in thousands)Beginning
Balance		Credit Loss
Expense		Charge-offsRecoveriesInitial ACL on Loans Purchased with Credit DeteriorationEnding
Balance
Three Months Ended June 30, 2025
Commercial real estate$4,657 $(518)$(5)$64 $— $4,198 
Construction, land development, land2,639 199 (250)1 — 2,589 
1-4 family residential1,446 158 (45)1 — 1,560 
Farmland326 (24)— — — 302 
Commercial16,191 1,693 (11,132)281 10,780 17,813 
Factored receivables9,851 (2,638)(665)4,005 — 10,553 
Consumer155 368 (91)34 — 466 
Mortgage warehouse964 246 — — — 1,210 
$36,229 $(516)$(12,188)$4,386 $10,780 $38,691 
(Dollars in thousands)Beginning
Balance		Credit Loss
Expense		Charge-offsRecoveriesInitial ACL on Loans Purchased with Credit DeteriorationEnding
Balance
Six Months Ended June 30, 2026
Commercial real estate$4,713 $151 $(668)$48 $— $4,244 
Construction, land development, land2,970 (52)— 1 — 2,919 
1-4 family residential1,927 205 (74)28 — 2,086 
Farmland298 3 — — — 301 
Commercial14,947 (2,625)(2,233)1,361 — 11,450 
Factored receivables10,069 4,126 (2,344)457 — 12,308 
Consumer429 155 (221)50 — 413 
Mortgage warehouse1,158 (96)— — — 1,062 
$36,511 $1,867 $(5,540)$1,945 $— $34,783 
(Dollars in thousands)Beginning
Balance		Credit Loss
Expense		Charge-offsRecoveriesInitial ACL on Loans Purchased with Credit DeteriorationEnding
Balance
Six Months Ended June 30, 2025
Commercial real estate$3,825 $427 $(121)$67 $— $4,198 
Construction, land development, land2,873 (35)(250)1 — 2,589 
1-4 family residential1,404 199 (46)3 — 1,560 
Farmland386 (84)— — — 302 
Commercial21,419 762 (15,503)355 10,780 17,813 
Factored receivables9,600 (1,129)(2,073)4,155 — 10,553 
Consumer185 470 (270)81 — 466 
Mortgage warehouse1,022 188 — — — 1,210 
$40,714 $798 $(18,263)$4,662 $10,780 $38,691 
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
June 30, 2026
Commercial real estate$59,123 $— $— $— $59,123 $— 
Construction, land development, land— — — — — — 
1-4 family residential2,276 — — — 2,276 2 
Farmland243 — 46 128 417 — 
Commercial105 — 41,140 3,755 45,000 1,565 
Factored receivables— 6,321 — — 6,321 1,365 
Consumer— — — 12 12 — 
Mortgage warehouse— — — — — — 
Total$61,747 $6,321 $41,186 $3,895 $113,149 $2,932 
(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 
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 Due		CurrentTotalPast Due 90
Days or More
and Accruing
June 30, 2026
Commercial real estate$58 $1,151 $38,349 $39,558 $627,962 $667,520 $— 
Construction, land development, land731 — — 731 191,360 192,091 — 
1-4 family residential223 863 1,754 2,840 202,700 205,540 — 
Farmland217 98 — 315 42,594 42,909 — 
Commercial7,611 7,248 29,985 44,844 1,115,284 1,160,128 — 
Factored receivables26,880 4,199 515 31,594 2,104,284 2,135,878 515 
Consumer3 — — 3 16,712 16,715 — 
Mortgage warehouse— — — — 1,056,310 1,056,310 — 
Total$35,723 $13,559 $70,603 $119,885 $5,357,206 $5,477,091 $515 
(Dollars in thousands)Past Due
30-59 Days		Past Due
60-90 Days		Past Due 90
Days or More		Total
Past Due		CurrentTotalPast Due 90
Days or More
and 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 residential370 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 — 
Total$97,929 $14,967 $22,986 $135,882 $4,855,425 $4,991,307 $2,525 
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:
June 30, 2026December 31, 2025
(Dollars in thousands)Total NonaccrualNonaccrual
With No ACL		Total NonaccrualNonaccrual
With No ACL
Commercial real estate$42,518 $42,518 $8,502 $8,502 
Construction, land development, land— — — — 
1-4 family residential2,276 2,218 1,790 1,790 
Farmland417 417 458 458 
Commercial44,774 38,216 45,446 38,224 
Factored receivables— — — — 
Consumer12 12 12 12 
Mortgage warehouse— — — — 
$89,997 $83,381 $56,208 $48,986 
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:
Three Months Ended June 30,Six Months Ended June 30,
(Dollars in thousands)2026202520262025
Commercial real estate$1 $62 $265 $76 
Construction, land development, land— — — — 
1-4 family residential— 2 3 2 
Farmland15 — 15 — 
Commercial3 — 30 3 
Factored receivables— — — — 
Consumer— — — — 
Mortgage warehouse— — — — 
$19 $64 $313 $81 
Schedule of Nonperforming Loans
The following table presents information regarding nonperforming loans:
(Dollars in thousands)June 30, 2026December 31, 2025
Nonaccrual loans$89,997 $56,208 
Nonperforming factored receivables515 1,347 
$90,512 $57,555 
Schedule of Risk Category of Loans As of June 30, 2026 and December 31, 2025, 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
June 30, 202620262025202420232022Prior
Commercial real estate
Pass$14,488 $195,137 $73,351 $98,459 $30,338 $146,854 $5,752 $829 $565,208 
Classified— — 42,600 37,890 3,128 17,773 921 — 102,312 
Total commercial real estate$14,488 $195,137 $115,951 $136,349 $33,466 $164,627 $6,673 $829 $667,520 
YTD gross charge-offs$— $— $— $2 $— $666 $— $— $668 
Construction, land development, land
Pass$11,385 $45,118 $35,557 $98,267 $723 $1,035 $6 $— $192,091 
Classified— — — — — — — — — 
Total construction, land development, land$11,385 $45,118 $35,557 $98,267 $723 $1,035 $6 $— $192,091 
YTD gross charge-offs$— $— $— $— $— $— $— $— $— 
1-4 family residential
Pass$35,803 $51,179 $31,103 $13,862 $7,932 $29,941 $30,417 $2,856 $203,093 
Classified— 358 319 376 31 1,135 228 — 2,447 
Total 1-4 family residential$35,803 $51,537 $31,422 $14,238 $7,963 $31,076 $30,645 $2,856 $205,540 
YTD gross charge-offs$— $— $— $— $— $74 $— $— $74 
Farmland
Pass$2,082 $8,610 $10,031 $2,364 $3,281 $13,936 $1,477 $316 $42,097 
Classified— — — — — 812 — — 812 
Total farmland$2,082 $8,610 $10,031 $2,364 $3,281 $14,748 $1,477 $316 $42,909 
YTD gross charge-offs$— $— $— $— $— $— $— $— $— 
Commercial
Pass$170,454 $290,400 $183,055 $53,605 $19,475 $13,653 $379,335 $2,844 $1,112,821 
Classified3,891 4,820 916 8,673 3,520 3,000 22,487 — 47,307 
Total commercial$174,345 $295,220 $183,971 $62,278 $22,995 $16,653 $401,822 $2,844 $1,160,128 
YTD gross charge-offs$— $1,314 $2 $246 $671 $— $— $— $2,233 
Factored receivables
Pass$2,129,832 $— $— $— $— $— $— $— $2,129,832 
Classified6,046 — — — — — — — 6,046 
Total factored receivables$2,135,878 $— $— $— $— $— $— $— $2,135,878 
YTD gross charge-offs$567 $1,777 $— $— $— $— $— $— $2,344 
Consumer
Pass$7,995 $1,650 $804 $549 $121 $244 $5,340 $— $16,703 
Classified— — — — — 12 — — 12 
Total consumer$7,995 $1,650 $804 $549 $121 $256 $5,340 $— $16,715 
YTD gross charge-offs$182 $28 $4 $7 $— $— $— $— $221 
Mortgage warehouse
Pass$1,056,310 $— $— $— $— $— $— $— $1,056,310 
Classified— — — — — — — — — 
Total mortgage warehouse$1,056,310 $— $— $— $— $— $— $— $1,056,310 
YTD gross charge-offs$— $— $— $— $— $— $— $— $— 
Total loans
Pass$3,428,349 $592,094 $333,901 $267,106 $61,870 $205,663 $422,327 $6,845 $5,318,155 
Classified9,937 5,178 43,835 46,939 6,679 22,732 23,636 — 158,936 
Total loans$3,438,286 $597,272 $377,736 $314,045 $68,549 $228,395 $445,963 $6,845 $5,477,091 
YTD gross charge-offs$749 $3,119 $6 $255 $671 $740 $— $— $5,540 
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 
Schedule of Loan Modifications
The following tables present the amortized cost basis of loan modifications to borrowers experiencing financial difficulty made during the reporting period:
Term Extension
Financial Effect
(Dollars in thousands)Amortized Cost % of PortfolioTerm Extended By
Three Months Ended June 30, 2026
Commercial real estate$48,161 7.2 %0.3 years
Commercial7,139 0.6 %1.7 years
$55,300 1.0 %
Three Months Ended June 30, 2025
Commercial real estate$134,268 17.8 %0.3 years
Commercial2,087 0.2 %1.3 years
$136,355 2.8 %
Six Months Ended June 30, 2026
Commercial real estate$48,161 7.2 %0.4 years
Commercial8,283 0.7 %1.5 years
$56,444 1.0 %
Six Months Ended June 30, 2025
Commercial real estate$134,268 17.8 %0.5 years
1-4 family residential15 — %5.0 years
Commercial2,087 0.2 %1.3 years
$136,370 2.8 %
Term Extension and Payment Delay
Financial Effect
(Dollars in thousands)Amortized Cost % of PortfolioTerm Extended ByPayments Delayed By
Three Months Ended June 30, 2025
Commercial302 — %0.5 years0.5 years
$302 — %
Six Months Ended June 30, 2026
Commercial real estate$654 0.1 %0.6 years0.5 years
$654 — %
Six Months Ended June 30, 2025
Commercial302 — %0.8 years0.8 years
$302 — %
Payment Delay
Financial Effect
(Dollars in thousands)Amortized Cost % of PortfolioPayments Delayed By
Six Months Ended June 30, 2025
Commercial$528 — %0.5 years
$528 — %
The following table presents the payment status of loans that have been modified in the last twelve months:
June 30, 2026
(Dollars in thousands)CurrentPast Due
30-89 Days		Past Due
90 Days or More		Total
Commercial real estate$66,282 $654 $37,554 $104,490 
Construction, land development, land— — — — 
1-4 family residential8 — — 8 
Farmland— — — — 
Commercial15,125 442 15 15,582 
Factored receivables— — — — 
Consumer— — — — 
Mortgage warehouse— — — — 
$81,415 $1,096 $37,569 $120,080