v3.26.1
Loans and Allowance for Loan Losses (Tables)
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
Loans by Portfolio Segment
Loans in the accompanying consolidated balance sheets are classified as follows (in thousands):    
June 30, 2026December 31, 2025
Real estate loans:  
Construction$600,080 $548,570 
1-4 family residential716,099 724,354 
Commercial owner-occupied362,390 319,536 
Commercial real estate2,408,573 2,393,280 
Commercial loans467,506 444,720 
Municipal loans357,568 346,720 
Loans to individuals37,351 40,811 
Total loans4,949,567 4,817,991 
Less: Allowance for loan losses45,595 45,100 
Net loans$4,903,972 $4,772,891 
Summary of loans by credit quality indicators and origination year
The following tables set forth the amortized cost basis by class of financing receivable and credit quality indicator for the periods presented (in thousands):
June 30, 2026Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisTotal
20262025202420232022Prior
Construction real estate:
Pass$119,703 $178,194 $93,165 $7,757 $3,306 $10,448 $141,155 $553,728 
Pass watch703 — 169 — — 8 30,641 31,521 
Special mention— — 1,232 — — 399 13,001 14,632 
Substandard— — — — 66 133 — 199 
Total construction real estate$120,406 $178,194 $94,566 $7,757 $3,372 $10,988 $184,797 $600,080 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
1-4 family residential real estate:
Pass$27,827 $52,826 $49,997 $61,890 $140,178 $377,580 $620 $710,918 
Special mention— — — — — 548 — 548 
Substandard— 371 — 390 — 2,711 259 3,731 
Doubtful— — 155 370 — 377 — 902 
Total 1-4 family residential real estate$27,827 $53,197 $50,152 $62,650 $140,178 $381,216 $879 $716,099 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Commercial owner-occupied:
Pass$68,165 $58,323 $25,968 $36,695 $43,573 $102,604 $7,474 $342,802 
Pass watch— — — — — 886 — 886 
Special mention— — — — 2,238 6,004 — 8,242 
Substandard— 1,007 — — 1,038 8,415 — 10,460 
Total commercial real estate$68,165 $59,330 $25,968 $36,695 $46,849 $117,909 $7,474 $362,390 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Commercial real estate:
Pass$304,012 $517,161 $184,269 $314,481 $310,849 $409,885 $9,445 $2,050,102 
Pass watch— 4,087 — — 7,501 94 — 11,682 
Special mention47,862 50,463 — 1,336 24,765 242 — 124,668 
Substandard35,112 51,853 3,919 41,841 78,273 11,123 — 222,121 
Total commercial real estate$386,986 $623,564 $188,188 $357,658 $421,388 $421,344 $9,445 $2,408,573 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Commercial loans:
Pass$72,458 $105,879 $32,550 $18,163 $19,799 $7,809 $153,132 $409,790 
Pass watch— 691 250 57 — — 33,022 34,020 
Special mention13 78 31 54 259 182 430 1,047 
Substandard640 1,108 12,335 1,514 322 223 6,102 22,244 
Doubtful— — 61 46 152 73 73 405 
Total commercial loans$73,111 $107,756 $45,227 $19,834 $20,532 $8,287 $192,759 $467,506 
Current period gross charge-offs$— $329 $223 $106 $51 $19 $— $728 
Municipal loans:
Pass$34,343 $1,940 $1,721 $30,192 $51,975 $237,397 $— $357,568 
Total municipal loans$34,343 $1,940 $1,721 $30,192 $51,975 $237,397 $— $357,568 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Loans to individuals:
Pass$9,974 $10,638 $5,944 $3,274 $2,496 $3,023 $1,957 $37,306 
Substandard— 12 6 14 1 1 — 34 
Doubtful— — 10 1 — — — 11 
Total loans to individuals$9,974 $10,650 $5,960 $3,289 $2,497 $3,024 $1,957 $37,351 
Current period gross charge-offs (1)
$568 $189 $30 $22 $— $1 $— $810 
Total loans$720,812 $1,034,631 $411,782 $518,075 $686,791 $1,180,165 $397,311 $4,949,567 
Total current period gross charge-offs (1)
$568 $518 $253 $128 $51 $20 $— $1,538 
(1) Includes $434,000 in charged off demand deposit overdrafts reported as 2026 originations.
December 31, 2025Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisTotal
20252024202320222021Prior
Construction real estate:
Pass$139,542 $96,548 $60,041 $3,649 $15,979 $5,939 $148,759 $470,457 
Pass watch9,343 1,494 — 31 — — 5,596 16,464 
Special mention47,492 — — — 407 58 13,468 61,425 
Substandard57 — — — 140 27 — 224 
Total construction real estate$196,434 $98,042 $60,041 $3,680 $16,526 $6,024 $167,823 $548,570 
Current period gross charge-offs$— $— $1 $— $— $— $— $1 
1-4 family residential real estate:
Pass$48,099 $50,197 $68,149 $143,782 $127,149 $278,702 $583 $716,661 
Special mention— — — — — 1,508 — 1,508 
Substandard2,380 — 112 — 658 2,199 269 5,618 
Doubtful— 165 265 — — 137 — 567 
Total 1-4 family residential real estate$50,479 $50,362 $68,526 $143,782 $127,807 $282,546 $852 $724,354 
Current period gross charge-offs$— $56 $— $— $— $13 $— $69 
Commercial owner-occupied:
Pass$58,592 $27,127 $38,350 $46,340 $53,831 $73,509 $2,672 $300,421 
Pass watch— — — 2,101 — 287 — 2,388 
Special mention— — — 2,285 — 6,132 — 8,417 
Substandard1,048 — — 129 6,162 971 — 8,310 
Total commercial real estate$59,640 $27,127 $38,350 $50,855 $59,993 $80,899 $2,672 $319,536 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Commercial real estate:
Pass$687,383 $186,142 $304,848 $338,165 $328,917 $183,000 $41,299 $2,069,754 
Pass watch21,226 — 49,316 32,339 — — — 102,881 
Special mention— — 2,691 76,116 — 251 — 79,058 
Substandard28,996 — — 101,201 5,935 5,455 — 141,587 
Total commercial real estate$737,605 $186,142 $356,855 $547,821 $334,852 $188,706 $41,299 $2,393,280 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Commercial loans:
Pass$124,358 $41,277 $27,101 $27,035 $8,388 $4,627 $189,290 $422,076 
Pass watch21 43 — — 36 — — 100 
Special mention204 202 177 469 590 3 532 2,177 
Substandard1,341 12,858 1,333 713 75 38 3,497 19,855 
Doubtful79 134 111 86 90 12 — 512 
Total commercial loans$126,003 $54,514 $28,722 $28,303 $9,179 $4,680 $193,319 $444,720 
Current period gross charge-offs$— $1,689 $409 $139 $139 $23 $— $2,399 
Municipal loans:
Pass$2,135 $1,800 $31,542 $54,168 $59,342 $197,733 $— $346,720 
Total municipal loans$2,135 $1,800 $31,542 $54,168 $59,342 $197,733 $— $346,720 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Loans to individuals:
Pass$16,861 $8,627 $4,980 $3,682 $2,524 $1,856 $2,049 $40,579 
Special mention8 — — — — — — 8 
Substandard3 1 8 2 — — — 14 
Doubtful185 20 3 1 — 1 — 210 
Total loans to individuals$17,057 $8,648 $4,991 $3,685 $2,524 $1,857 $2,049 $40,811 
Current period gross charge-offs$1,620 $34 $24 $68 $24 $18 $— $1,788 
Total loans$1,189,353 $426,635 $589,027 $832,294 $610,223 $762,445 $408,014 $4,817,991 
Total current period gross charge-offs (1)
$1,620 $1,779 $434 $207 $163 $54 $— $4,257 
(1) Includes $1.2 million in charged off demand deposit overdrafts reported as 2025 originations.
Aging of past due loans by class of loan
The following tables present the aging of the amortized cost basis in past due loans by class of loans (in thousands):
 June 30, 2026
 
30-59 Days
Past Due
60-89 Days
Past Due
Greater than 90 Days Past Due
Total Past
Due
CurrentTotal
Real estate loans:     
Construction$145 $32 $— $177 $599,903 $600,080 
1-4 family residential1,298 207 975 2,480 713,619 716,099 
Commercial owner-occupied991,272 9602,331 360,059 362,390 
Commercial real estate1,258 5,668 — 6,926 2,401,647 2,408,573 
Commercial loans1,184 378 1,808 3,370 464,136 467,506 
Municipal loans— — — — 357,568 357,568 
Loans to individuals94 4 — 98 37,253 37,351 
Total$4,078 $7,561 $3,743 $15,382 $4,934,185 $4,949,567 
December 31, 2025
30-59 Days Past Due60-89 Days Past DueGreater than 90 Days
Past Due
Total Past
Due
CurrentTotal
Real estate loans:
Construction$416 $1,407 $— $1,823 $546,747 $548,570 
1-4 family residential4,324 693 1,284 6,301 718,053 724,354 
Commercial owner-occupied1,325 — — 1,325 318,211 319,536 
Commercial real estate322 5,447 — 5,769 2,387,511 2,393,280 
Commercial loans1,132 640 380 2,152 442,568 444,720 
Municipal loans— — — — 346,720 346,720 
Loans to individuals353 — — 353 40,458 40,811 
Total$7,872 $8,187 $1,664 $17,723 $4,800,268 $4,817,991 
Nonperforming assets by asset class
The following table sets forth the amortized cost basis of nonperforming assets for the periods presented (in thousands):
 June 30, 2026December 31, 2025
Nonaccrual loans:
Real estate loans:
Construction$17 $18 
1-4 family residential3,741 4,939 
Commercial owner-occupied2,821 1,220 
Commercial real estate— — 
Commercial loans3,030 4,091 
Loans to individuals21 218 
Total nonaccrual loans (1)
9,630 10,486 
Accruing loans past due more than 90 days— — 
Restructured loans47 27,509 
OREO116 248 
Repossessed assets5 — 
Total nonperforming assets$9,798 $38,243 

(1)    Includes $3.6 million and $2.0 million of restructured loans as of June 30, 2026 and December 31, 2025, respectively.
Restructured loans and type of modification
The following table sets forth the recorded balance of restructured loans and type of modification by class of loans during the periods presented (dollars in thousands):
Three Months Ended June 30, 2026
 Amortization
 Period Extension		Interest Rate ReductionCombination Total ModificationsNumber of LoansPercent of Total Class
Real estate loans:  
1-4 family residential$257 $— $— $257 1 0.04 %
Commercial loans98 — — 98 3 0.02 %
Total$355 $— $— $355 4
 Six Months Ended June 30, 2026
 Amortization
 Period Extension		Interest Rate ReductionCombinationTotal ModificationsNumber of LoansPercent of Total Class
Real estate loans:
1-4 family residential$257 $— $— $257 1 0.04 %
Commercial owner-occupied1,006 — — 1,006 1 0.28 %
Commercial loans691 — — 691 7 0.15 %
Total$1,954 $— $— $1,954 9 

 Three Months Ended June 30, 2025
 Amortization
 Period Extension		Interest Rate ReductionCombinationTotal ModificationsNumber of LoansPercent of Total Class
Commercial loans$326 $— $— $326 8 0.09 %
Loans to individuals200 — — 200 1 0.44 %
Total$526 $— $— $526 9
 Six Months Ended June 30, 2025
 Amortization
 Period Extension		Interest Rate ReductionCombinationTotal ModificationsNumber of LoansPercent of Total Class
Real estate loans:
Commercial real estate$27,501 $— $— $27,501 1 1.21 %
Commercial loans326 — — 326 8 0.09 %
Loans to individuals210 — — 210 2 0.47 %
Total$28,037 $— $— $28,037 11 
Allowance for loan losses activity by portfolio segment
The following tables detail activity in the allowance for loan losses by portfolio segment for the periods presented (in thousands):
 Three Months Ended June 30, 2026
 Real Estate    
 Construction
1-4 Family
Residential
Commercial Owner-OccupiedCommercial Real Estate
Commercial
Loans
Municipal
Loans
Loans to
Individuals
Total
Balance at beginning of period$9,645 $2,804 $5,488 $23,841 $3,866 $12 $307 $45,963 
Loans charged-off— — — — (371)— (487)(858)
Recoveries of loans charged-off— 4 4 — 371 — 135 514 
Net loans (charged-off)
recovered		— 4 4 — — — (352)(344)
Provision for (reversal of) loan losses(3,124)4 375 1,298 1,249 — 174 (24)
Balance at end of period$6,521 $2,812 $5,867 $25,139 $5,115 $12 $129 $45,595 
 Six Months Ended June 30, 2026
 Real Estate    
 Construction
1-4 Family
Residential
Commercial Owner-OccupiedCommercial Real Estate
Commercial
Loans
Municipal
Loans
Loans to
Individuals
Total
Balance at beginning of period$7,951 $2,830 $5,655 $23,750 $4,588 $13 $313 $45,100 
Loans charged-off— — — — (728)— (810)(1,538)
Recoveries of loans charged-off— 11 7 — 699 — 326 1,043 
Net loans (charged-off) recovered— 11 7 — (29)— (484)(495)
Provision for (reversal of) loan losses(1,430)(29)205 1,389 556 (1)300 990 
Balance at end of period$6,521 $2,812 $5,867 $25,139 $5,115 $12 $129 $45,595 

 Three Months Ended June 30, 2025
 Real Estate    
 Construction
1-4 Family
Residential
Commercial Owner-OccupiedCommercial Real Estate
Commercial
Loans
Municipal
Loans
Loans to
Individuals
Total
Balance at beginning of period$3,887 $2,709 $5,488 $29,242 $3,128 $14 $155 $44,623 
Loans charged-off— (56)— — (727)— (411)(1,194)
Recoveries of loans charged-off— 7 3 1 163 — 168 342 
Net loans (charged-off)
recovered		— (49)3 1 (564)— (243)(852)
Provision for (reversal of) loan losses 2,307 121 (74)(3,959)1,869 — 386 650 
Balance at end of period$6,194 $2,781 $5,417 $25,284 $4,433 $14 $298 $44,421 
Six Months Ended June 30, 2025
Real Estate
Construction1-4 Family
Residential		Commercial Owner-OccupiedCommercial Real EstateCommercial
Loans 		Municipal
Loans		Loans to
Individuals		Total
Balance at beginning of period$3,958 $2,780 $5,603 $29,923 $2,448 $16 $156 $44,884 
Loans charged-off (1)
— (69)— — (883)— (855)(1,807)
Recoveries of loans charged-off— 15 7 2 265 — 363 652 
Net loans (charged-off) recovered— (54)7 2 (618)— (492)(1,155)
Provision (reversal) for loan losses (2)
2,236 55 (193)(4,641)2,603 (2)634 692 
Balance at end of period$6,194 $2,781 $5,417 $25,284 $4,433 $14 $298 $44,421