| Loans |
Note 5 — Loans The following is a summary of total loans: | | | | | | | | | | June 30, | | December 31, | | (Dollars in thousands) | | 2026 | | 2025 | | Loans: | | | | | | | | Construction and land development (1) | | $ | 2,982,968 | | $ | 2,548,360 | | Commercial non-owner-occupied | | | 17,481,117 | | | 16,651,760 | | Commercial owner-occupied real estate | | | 7,852,391 | | | 7,576,991 | | Consumer owner-occupied (2) | | | 9,125,082 | | | 8,618,434 | | Home equity loans | | | 1,909,020 | | | 1,831,789 | | Commercial and industrial | | | 9,378,444 | | | 9,181,408 | | Other income producing property | | | 1,175,338 | | | 1,232,153 | | Consumer | | | 934,035 | | | 955,266 | | Other loans | | | 8,477 | | | 2,366 | | Total loans | | | 50,846,872 | | | 48,598,527 | | Less: allowance for credit losses | | | (586,664) | | | (585,197) | | Loans, net | | $ | 50,260,208 | | $ | 48,013,330 | |
| (1) | Construction and land development includes loans for both commercial construction and development, as well as loans for 1-4 family residential construction and lot loans. |
| (2) | Consumer owner-occupied real estate includes loans on both 1-4 family owner-occupied property, as well as loans collateralized by 1-4 family owner-occupied properties with a business intent. |
The above table reflects the loan portfolio at the amortized cost basis for the periods June 30, 2026, and December 31, 2025, to include net deferred costs of $84.1 million and $97.0 million, respectively, and unamortized discount related to loans acquired of $185.9 million and $259.5 million, respectively. Accrued interest receivables of $187.6 million and $186.5 million, respectively, are accounted for separately and reported in other assets for the periods June 30, 2026, and December 31, 2025. For a description of the Company’s loan risk grading system, including the definitions of Pass, Special Mention, Substandard, and Doubtful, refer to Note 4 to the Consolidated Financial Statements in the 2025 Form 10-K. The following table presents the credit risk profile by risk grade of commercial loans by origination year as of and for the period ending June 30, 2026: | | | | | | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | | | Term Loans Amortized Cost Basis by Origination Year | As of June 30, 2026 | | 2026 | | 2025 | | 2024 | | 2023 | | 2022 | | Prior | | Revolving | | Total | Construction and land development | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating: | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 497,110 | | $ | 1,084,206 | | $ | 500,035 | | $ | 106,149 | | $ | 89,490 | | $ | 69,163 | | $ | 144,237 | | $ | 2,490,390 | Special mention | | | 1,328 | | | 3,097 | | | 278 | | | 25,393 | | | — | | | 550 | | | 41,738 | | | 72,384 | Substandard | | | 2,121 | | | 5,764 | | | 6,986 | | | 31,998 | | | 8,693 | | | 6,224 | | | — | | | 61,786 | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total Construction and land development | | $ | 500,559 | | $ | 1,093,067 | | $ | 507,299 | | $ | 163,540 | | $ | 98,183 | | $ | 75,937 | | $ | 185,975 | | $ | 2,624,560 | Construction and land development | | | | | | | | | | | | | | | | | | | | | | | | | Current-period gross charge-offs | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 166 | | $ | — | | $ | 166 | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial non-owner-occupied | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating: | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 2,534,850 | | $ | 2,514,311 | | $ | 1,079,357 | | $ | 1,089,654 | | $ | 3,429,598 | | $ | 4,552,116 | | $ | 259,543 | | $ | 15,459,429 | Special mention | | | 26,266 | | | 47,961 | | | 26,375 | | | 42,827 | | | 324,787 | | | 101,640 | | | 1,070 | | | 570,926 | Substandard | | | 49,745 | | | 76,404 | | | 31,664 | | | 196,749 | | | 691,061 | | | 404,382 | | | 753 | | | 1,450,758 | Doubtful | | | — | | | — | | | — | | | — | | | — | | | 4 | | | — | | | 4 | Total Commercial non-owner-occupied | | $ | 2,610,861 | | $ | 2,638,676 | | $ | 1,137,396 | | $ | 1,329,230 | | $ | 4,445,446 | | $ | 5,058,142 | | $ | 261,366 | | $ | 17,481,117 | Commercial non-owner-occupied | | | | | | | | | | | | | | | | | | | | | | | | | Current-period gross charge-offs | | $ | — | | $ | — | | $ | — | | $ | 969 | | $ | — | | $ | — | | $ | — | | $ | 969 | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial Owner-Occupied | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating: | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 871,834 | | $ | 1,221,181 | | $ | 692,300 | | $ | 603,475 | | $ | 1,088,014 | | $ | 2,899,012 | | $ | 110,661 | | $ | 7,486,477 | Special mention | | | 2,704 | | | 6,922 | | | 2,978 | | | 10,136 | | | 11,877 | | | 17,764 | | | 261 | | | 52,642 | Substandard | | | 6,089 | | | 18,510 | | | 25,540 | | | 49,646 | | | 86,756 | | | 124,746 | | | 1,969 | | | 313,256 | Doubtful | | | — | | | 8 | | | 4 | | | — | | | — | | | 4 | | | — | | | 16 | Total commercial owner-occupied | | $ | 880,627 | | $ | 1,246,621 | | $ | 720,822 | | $ | 663,257 | | $ | 1,186,647 | | $ | 3,041,526 | | $ | 112,891 | | $ | 7,852,391 | Commercial owner-occupied | | | | | | | | | | | | | | | | | | | | | | | | | Current-period gross charge-offs | | $ | — | | $ | — | | $ | 11 | | $ | 134 | | $ | 188 | | $ | 38 | | $ | — | | $ | 371 | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial and industrial | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating: | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 1,814,574 | | $ | 1,759,014 | | $ | 861,689 | | $ | 494,697 | | $ | 672,230 | | $ | 974,791 | | $ | 2,400,723 | | $ | 8,977,718 | Special mention | | | 735 | | | 5,119 | | | 4,226 | | | 5,712 | | | 3,649 | | | 7,399 | | | 11,854 | | | 38,694 | Substandard | | | 14,719 | | | 26,814 | | | 59,029 | | | 50,188 | | | 47,701 | | | 60,314 | | | 102,969 | | | 361,734 | Doubtful | | | 4 | | | 8 | | | 30 | | | 59 | | | 69 | | | 26 | | | 102 | | | 298 | Total commercial and industrial | | $ | 1,830,032 | | $ | 1,790,955 | | $ | 924,974 | | $ | 550,656 | | $ | 723,649 | | $ | 1,042,530 | | $ | 2,515,648 | | $ | 9,378,444 | Commercial and industrial | | | | | | | | | | | | | | | | | | | | | | | | | Current-period gross charge-offs | | $ | 1,108 | | $ | 2,617 | | $ | 6,266 | | $ | 3,004 | | $ | 1,204 | | $ | 1,399 | | $ | 1,928 | | $ | 17,526 | | | | | | | | | | | | | | | | | | | | | | | | | | Other income producing property | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating: | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 128,579 | | $ | 143,743 | | $ | 93,401 | | $ | 65,554 | | $ | 239,444 | | $ | 296,614 | | $ | 63,941 | | $ | 1,031,276 | Special mention | | | 142 | | | 1,811 | | | 260 | | | 45 | | | 1,844 | | | 2,051 | | | 519 | | | 6,672 | Substandard | | | 1,409 | | | 838 | | | 625 | | | 1,877 | | | 10,602 | | | 20,986 | | | 221 | | | 36,558 | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total other income producing property | | $ | 130,130 | | $ | 146,392 | | $ | 94,286 | | $ | 67,476 | | $ | 251,890 | | $ | 319,651 | | $ | 64,681 | | $ | 1,074,506 | Other income producing property | | | | | | | | | | | | | | | | | | | | | | | | | Current-period gross charge-offs | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | Consumer owner-occupied | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating: | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 7,167 | | $ | 14,860 | | $ | 2,106 | | $ | 17,596 | | $ | 10,329 | | $ | 34,808 | | $ | 38,819 | | $ | 125,685 | Special mention | | | — | | | 105 | | | 726 | | | 128 | | | — | | | 76 | | | 95 | | | 1,130 | Substandard | | | 473 | | | 1,251 | | | — | | | 368 | | | — | | | — | | | 583 | | | 2,675 | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total Consumer owner-occupied | | $ | 7,640 | | $ | 16,216 | | $ | 2,832 | | $ | 18,092 | | $ | 10,329 | | $ | 34,884 | | $ | 39,497 | | $ | 129,490 | Consumer owner-occupied | | | | | | | | | | | | | | | | | | | | | | | | | Current-period gross charge-offs | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | Other loans | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating: | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 8,477 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 8,477 | Special mention | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total other loans | | $ | 8,477 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 8,477 | Other loans | | | | | | | | | | | | | | | | | | | | | | | | | Current-period gross charge-offs | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | Total Commercial Loans | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating: | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 5,862,591 | | $ | 6,737,315 | | $ | 3,228,888 | | $ | 2,377,125 | | $ | 5,529,105 | | $ | 8,826,504 | | $ | 3,017,924 | | $ | 35,579,452 | Special mention | | | 31,175 | | | 65,015 | | | 34,843 | | | 84,241 | | | 342,157 | | | 129,480 | | | 55,537 | | | 742,448 | Substandard | | | 74,556 | | | 129,581 | | | 123,844 | | | 330,826 | | | 844,813 | | | 616,652 | | | 106,495 | | | 2,226,767 | Doubtful | | | 4 | | | 16 | | | 34 | | | 59 | | | 69 | | | 34 | | | 102 | | | 318 | Total Commercial Loans | | $ | 5,968,326 | | $ | 6,931,927 | | $ | 3,387,609 | | $ | 2,792,251 | | $ | 6,716,144 | | $ | 9,572,670 | | $ | 3,180,058 | | $ | 38,548,985 | Commercial Loans | | | | | | | | | | | | | | | | | | | | | | | | | Current-period gross charge-offs | | $ | 1,108 | | $ | 2,617 | | $ | 6,277 | | $ | 4,107 | | $ | 1,392 | | $ | 1,603 | | $ | 1,928 | | $ | 19,032 |
The following table presents the credit risk profile by risk grade of commercial loans by origination year as of and for the period ending December 31, 2025: | | | | | | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | | | Term Loans Amortized Cost Basis by Origination Year | As of December 31, 2025 | | 2025 | | 2024 | | 2023 | | 2022 | | 2021 | | Prior | | Revolving | | Total | Construction and land development | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating: | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 862,035 | | $ | 575,253 | | $ | 264,370 | | $ | 175,486 | | $ | 57,814 | | $ | 40,977 | | $ | 147,911 | | $ | 2,123,846 | Special mention | | | 706 | | | 137 | | | 1,815 | | | 20,580 | | | 335 | | | 510 | | | — | | | 24,083 | Substandard | | | 5,292 | | | 7,512 | | | 32,431 | | | 5,898 | | | 892 | | | 5,564 | | | — | | | 57,589 | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total Construction and land development | | $ | 868,033 | | $ | 582,902 | | $ | 298,616 | | $ | 201,964 | | $ | 59,041 | | $ | 47,051 | | $ | 147,911 | | $ | 2,205,518 | Construction and land development | | | | | | | | | | | | | | | | | | | | | | | | | Current-period gross charge-offs | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 16 | | $ | — | | $ | — | | $ | 16 | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial non-owner-occupied | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating: | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 2,564,868 | | $ | 1,161,720 | | $ | 1,304,297 | | $ | 3,828,512 | | $ | 2,440,726 | | $ | 2,996,445 | | $ | 185,751 | | $ | 14,482,319 | Special mention | | | 51,864 | | | 17,084 | | | 100,316 | | | 383,957 | | | 27,680 | | | 96,579 | | | 10,484 | | | 687,964 | Substandard | | | 169,713 | | | 28,225 | | | 100,542 | | | 598,777 | | | 357,340 | | | 226,461 | | | 415 | | | 1,481,473 | Doubtful | | | — | | | — | | | — | | | — | | | 1 | | | 3 | | | — | | | 4 | Total Commercial non-owner-occupied | | $ | 2,786,445 | | $ | 1,207,029 | | $ | 1,505,155 | | $ | 4,811,246 | | $ | 2,825,747 | | $ | 3,319,488 | | $ | 196,650 | | $ | 16,651,760 | Commercial non-owner-occupied | | | | | | | | | | | | | | | | | | | | | | | | | Current-period gross charge-offs | | $ | — | | $ | — | | $ | 4,565 | | $ | 1,237 | | $ | 18,033 | | $ | 9,800 | | $ | — | | $ | 33,635 | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial Owner-Occupied | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating: | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 1,210,501 | | $ | 777,109 | | $ | 634,593 | | $ | 1,105,730 | | $ | 1,110,749 | | $ | 2,218,753 | | $ | 102,835 | | $ | 7,160,270 | Special mention | | | 4,609 | | | 1,075 | | | 12,204 | | | 10,424 | | | 5,539 | | | 17,866 | | | 438 | | | 52,155 | Substandard | | | 19,657 | | | 38,394 | | | 52,341 | | | 115,676 | | | 33,813 | | | 102,965 | | | 1,703 | | | 364,549 | Doubtful | | | 9 | | | 4 | | | — | | | — | | | — | | | 4 | | | — | | | 17 | Total commercial owner-occupied | | $ | 1,234,776 | | $ | 816,582 | | $ | 699,138 | | $ | 1,231,830 | | $ | 1,150,101 | | $ | 2,339,588 | | $ | 104,976 | | $ | 7,576,991 | Commercial owner-occupied | | | | | | | | | | | | | | | | | | | | | | | | | Current-period gross charge-offs | | $ | 1,095 | | $ | — | | $ | 874 | | $ | 1,628 | | $ | 184 | | $ | 1,317 | | $ | 50 | | $ | 5,148 | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial and industrial | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating: | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 2,644,081 | | $ | 1,056,432 | | $ | 613,536 | | $ | 876,480 | | $ | 410,578 | | $ | 771,994 | | $ | 2,396,981 | | $ | 8,770,082 | Special mention | | | 5,089 | | | 2,283 | | | 20,226 | | | 6,023 | | | 2,955 | | | 2,208 | | | 14,387 | | | 53,171 | Substandard | | | 10,054 | | | 50,362 | | | 52,210 | | | 52,356 | | | 37,921 | | | 31,469 | | | 123,611 | | | 357,983 | Doubtful | | | — | | | 3 | | | 43 | | | 68 | | | 50 | | | 2 | | | 6 | | | 172 | Total commercial and industrial | | $ | 2,659,224 | | $ | 1,109,080 | | $ | 686,015 | | $ | 934,927 | | $ | 451,504 | | $ | 805,673 | | $ | 2,534,985 | | $ | 9,181,408 | Commercial and industrial | | | | | | | | | | | | | | | | | | | | | | | | | Current-period gross charge-offs | | $ | 23,240 | | $ | 2,947 | | $ | 4,351 | | $ | 9,157 | | $ | 12,680 | | $ | 11,844 | | $ | 10,007 | | $ | 74,226 | | | | | | | | | | | | | | | | | | | | | | | | | | Other income producing property | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating: | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 157,404 | | $ | 114,264 | | $ | 88,883 | | $ | 272,672 | | $ | 173,188 | | $ | 210,459 | | $ | 55,663 | | $ | 1,072,533 | Special mention | | | 2,020 | | | 463 | | | 145 | | | 269 | | | 542 | | | 2,897 | | | 602 | | | 6,938 | Substandard | | | 1,936 | | | 420 | | | 1,918 | | | 15,540 | | | 2,294 | | | 17,247 | | | 548 | | | 39,903 | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total other income producing property | | $ | 161,360 | | $ | 115,147 | | $ | 90,946 | | $ | 288,481 | | $ | 176,024 | | $ | 230,603 | | $ | 56,813 | | $ | 1,119,374 | Other income producing property | | | | | | | | | | | | | | | | | | | | | | | | | Current-period gross charge-offs | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | Consumer owner-occupied | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating: | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 15,587 | | $ | 3,687 | | $ | 20,410 | | $ | 10,949 | | $ | 11,145 | | $ | 25,248 | | $ | 31,042 | | $ | 118,068 | Special mention | | | 118 | | | 745 | | | 131 | | | — | | | — | | | — | | | — | | | 994 | Substandard | | | 1,376 | | | 209 | | | — | | | — | | | — | | | 158 | | | 588 | | | 2,331 | Doubtful | | | — | | | — | | | — | | | — | | | — | | | 1 | | | — | | | 1 | Total Consumer owner-occupied | | $ | 17,081 | | $ | 4,641 | | $ | 20,541 | | $ | 10,949 | | $ | 11,145 | | $ | 25,407 | | $ | 31,630 | | $ | 121,394 | Consumer owner-occupied | | | | | | | | | | | | | | | | | | | | | | | | | Current-period gross charge-offs | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | Other loans | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating: | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 2,366 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 2,366 | Special mention | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Substandard | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Doubtful | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Total other loans | | $ | 2,366 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 2,366 | Other loans | | | | | | | | | | | | | | | | | | | | | | | | | Current-period gross charge-offs | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | Total Commercial Loans | | | | | | | | | | | | | | | | | | | | | | | | | Risk rating: | | | | | | | | | | | | | | | | | | | | | | | | | Pass | | $ | 7,456,842 | | $ | 3,688,465 | | $ | 2,926,089 | | $ | 6,269,829 | | $ | 4,204,200 | | $ | 6,263,876 | | $ | 2,920,183 | | $ | 33,729,484 | Special mention | | | 64,406 | | | 21,787 | | | 134,837 | | | 421,253 | | | 37,051 | | | 120,060 | | | 25,911 | | | 825,305 | Substandard | | | 208,028 | | | 125,122 | | | 239,442 | | | 788,247 | | | 432,260 | | | 383,864 | | | 126,865 | | | 2,303,828 | Doubtful | | | 9 | | | 7 | | | 43 | | | 68 | | | 51 | | | 10 | | | 6 | | | 194 | Total Commercial Loans | | $ | 7,729,285 | | $ | 3,835,381 | | $ | 3,300,411 | | $ | 7,479,397 | | $ | 4,673,562 | | $ | 6,767,810 | | $ | 3,072,965 | | $ | 36,858,811 | Commercial Loans | | | | | | | | | | | | | | | | | | | | | | | | | Current-period gross charge-offs | | $ | 24,335 | | $ | 2,947 | | $ | 9,790 | | $ | 12,022 | | $ | 30,913 | | $ | 22,961 | | $ | 10,057 | | $ | 113,025 |
For the consumer segment, delinquency of a loan is determined by past due status. Consumer loans are automatically placed on nonaccrual status once the loan is 90 days past due. Construction and land development loans are on 1-4 family residential properties and lots. The following table presents the credit risk profile by past due status of consumer loans by origination year as of and for the period ending June 30, 2026: | | | | | | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | | Term Loans Amortized Cost Basis by Origination Year | As of June 30, 2026 | | 2026 | | 2025 | | 2024 | | 2023 | | 2022 | | Prior | | Revolving | | Total | Consumer owner-occupied | | | | | | | | | | | | | | | | | | | | | | | | | Days past due: | | | | | | | | | | | | | | | | | | | | | | | | | Current | | $ | 1,001,713 | | $ | 1,164,128 | | $ | 584,617 | | $ | 896,759 | | $ | 2,287,256 | | $ | 2,987,852 | | $ | — | | $ | 8,922,325 | 30 days past due | | | — | | | 5,151 | | | 5,785 | | | 3,797 | | | 2,857 | | | 6,777 | | | — | | | 24,367 | 60 days past due | | | — | | | 2,887 | | | 2,472 | | | 2,412 | | | 512 | | | 5,525 | | | — | | | 13,808 | 90 days past due | | | 212 | | | 2,286 | | | 10,324 | | | 11,052 | | | 3,877 | | | 7,341 | | | — | | | 35,092 | Total Consumer owner-occupied | | $ | 1,001,925 | | $ | 1,174,452 | | $ | 603,198 | | $ | 914,020 | | $ | 2,294,502 | | $ | 3,007,495 | | $ | — | | $ | 8,995,592 | Consumer owner-occupied | | | | | | | | | | | | | | | | | | | | | | | | | Current-period gross charge-offs | | $ | — | | $ | 385 | | $ | 1,098 | | $ | 886 | | $ | 250 | | $ | 22 | | $ | — | | $ | 2,641 | | | | | | | | | | | | | | | | | | | | | | | | | | Home equity loans | | | | | | | | | | | | | | | | | | | | | | | | | Days past due: | | | | | | | | | | | | | | | | | | | | | | | | | Current | | $ | 159 | | $ | 1,456 | | $ | 3,162 | | $ | 1,398 | | $ | 2,589 | | $ | 13,586 | | $ | 1,876,828 | | $ | 1,899,178 | 30 days past due | | | — | | | — | | | 90 | | | — | | | 70 | | | 269 | | | 2,888 | | | 3,317 | 60 days past due | | | — | | | — | | | 114 | | | — | | | 3 | | | 579 | | | 1,496 | | | 2,192 | 90 days past due | | | — | | | — | | | 666 | | | 685 | | | 397 | | | 1,424 | | | 1,161 | | | 4,333 | Total Home equity loans | | $ | 159 | | $ | 1,456 | | $ | 4,032 | | $ | 2,083 | | $ | 3,059 | | $ | 15,858 | | $ | 1,882,373 | | $ | 1,909,020 | Home equity loans | | | | | | | | | | | | | | | | | | | | | | | | | Current-period gross charge-offs | | $ | — | | $ | — | | $ | 104 | | $ | 10 | | $ | — | | $ | 50 | | $ | 35 | | $ | 199 | | | | | | | | | | | | | | | | | | | | | | | | | | Consumer | | | | | | | | | | | | | | | | | | | | | | | | | Days past due: | | | | | | | | | | | | | | | | | | | | | | | | | Current | | $ | 126,474 | | $ | 155,609 | | $ | 107,469 | | $ | 132,304 | | $ | 129,074 | | $ | 187,623 | | $ | 90,568 | | $ | 929,121 | 30 days past due | | | 53 | | | 161 | | | 89 | | | 161 | | | 264 | | | 917 | | | 47 | | | 1,692 | 60 days past due | | | — | | | 66 | | | 230 | | | 64 | | | 213 | | | 316 | | | 39 | | | 928 | 90 days past due | | | 1 | | | 40 | | | 261 | | | 221 | | | 363 | | | 1,382 | | | 26 | | | 2,294 | Total consumer | | $ | 126,528 | | $ | 155,876 | | $ | 108,049 | | $ | 132,750 | | $ | 129,914 | | $ | 190,238 | | $ | 90,680 | | $ | 934,035 | Consumer | | | | | | | | | | | | | | | | | | | | | | | | | Current-period gross charge-offs | | $ | 28 | | $ | 419 | | $ | 359 | | $ | 555 | | $ | 128 | | $ | 113 | | $ | 2,702 | | $ | 4,304 | | | | | | | | | | | | | | | | | | | | | | | | | | Construction and land development | | | | | | | | | | | | | | | | | | | | | | | | | Days past due: | | | | | | | | | | | | | | | | | | | | | | | | | Current | | $ | 69,597 | | $ | 144,048 | | $ | 44,526 | | $ | 21,646 | | $ | 38,200 | | $ | 39,807 | | $ | — | | $ | 357,824 | 30 days past due | | | — | | | — | | | — | | | 302 | | | — | | | 10 | | | — | | | 312 | 60 days past due | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | 90 days past due | | | — | | | — | | | — | | | 3 | | | 269 | | | — | | | — | | | 272 | Total Construction and land development | | $ | 69,597 | | $ | 144,048 | | $ | 44,526 | | $ | 21,951 | | $ | 38,469 | | $ | 39,817 | | $ | — | | $ | 358,408 | Construction and land development | | | | | | | | | | | | | | | | | | | | | | | | | Current-period gross charge-offs | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | Other income producing property | | | | | | | | | | | | | | | | | | | | | | | | | Days past due: | | | | | | | | | | | | | | | | | | | | | | | | | Current | | $ | 1,273 | | $ | 3,936 | | $ | 1,187 | | $ | 7,233 | | $ | 47,121 | | $ | 39,583 | | $ | 94 | | $ | 100,427 | 30 days past due | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | 60 days past due | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | 90 days past due | | | — | | | — | | | 3 | | | — | | | 258 | | | 144 | | | — | | | 405 | Total other income producing property | | $ | 1,273 | | $ | 3,936 | | $ | 1,190 | | $ | 7,233 | | $ | 47,379 | | $ | 39,727 | | $ | 94 | | $ | 100,832 | Other income producing property | | | | | | | | | | | | | | | | | | | | | | | | | Current-period gross charge-offs | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | Total Consumer Loans | | | | | | | | | | | | | | | | | | | | | | | | | Days past due: | | | | | | | | | | | | | | | | | | | | | | | | | Current | | $ | 1,199,216 | | $ | 1,469,177 | | $ | 740,961 | | $ | 1,059,340 | | $ | 2,504,240 | | $ | 3,268,451 | | $ | 1,967,490 | | $ | 12,208,875 | 30 days past due | | | 53 | | | 5,312 | | | 5,964 | | | 4,260 | | | 3,191 | | | 7,973 | | | 2,935 | | | 29,688 | 60 days past due | | | — | | | 2,953 | | | 2,816 | | | 2,476 | | | 728 | | | 6,420 | | | 1,535 | | | 16,928 | 90 days past due | | | 213 | | | 2,326 | | | 11,254 | | | 11,961 | | | 5,164 | | | 10,291 | | | 1,187 | | | 42,396 | Total Consumer Loans | | $ | 1,199,482 | | $ | 1,479,768 | | $ | 760,995 | | $ | 1,078,037 | | $ | 2,513,323 | | $ | 3,293,135 | | $ | 1,973,147 | | $ | 12,297,887 | Consumer Loans | | | | | | | | | | | | | | | | | | | | | | | | | Current-period gross charge-offs | | $ | 28 | | $ | 804 | | $ | 1,561 | | $ | 1,451 | | $ | 378 | | $ | 185 | | $ | 2,737 | | $ | 7,144 |
The following table presents the credit risk profile by past due status of total loans by origination year as of and for the period ending June 30, 2026: | | | | | | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | | Term Loans Amortized Cost Basis by Origination Year | As of June 30, 2026 | | 2026 | | 2025 | | 2024 | | 2023 | | 2022 | | Prior | | Revolving | | Total | Total Loans | | $ | 7,167,808 | | $ | 8,411,695 | | $ | 4,148,604 | | $ | 3,870,288 | | $ | 9,229,467 | | $ | 12,865,805 | | $ | 5,153,205 | | $ | 50,846,872 | | | | | | | | | | | | | | | | | | | | | | | | | | Current-period gross charge-offs | | $ | 1,136 | | $ | 3,421 | | $ | 7,838 | | $ | 5,558 | | $ | 1,770 | | $ | 1,788 | | $ | 4,665 | | $ | 26,176 |
The following table presents the credit risk profile by past due status of consumer loans by origination year as of and for the period ending December 31, 2025: | | | | | | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | | Term Loans Amortized Cost Basis by Origination Year | As of December 31, 2025 | | 2025 | | 2024 | | 2023 | | 2022 | | 2021 | | Prior | | Revolving | | Total | Consumer owner-occupied | | | | | | | | | | | | | | | | | | | | | | | | | Days past due: | | | | | | | | | | | | | | | | | | | | | | | | | Current | | $ | 1,182,075 | | $ | 647,315 | | $ | 1,014,555 | | $ | 2,407,217 | | $ | 1,639,720 | | $ | 1,543,231 | | $ | — | | $ | 8,434,113 | 30 days past due | | | 2,060 | | | 3,805 | | | 5,472 | | | 3,232 | | | 3,926 | | | 3,369 | | | — | | | 21,864 | 60 days past due | | | 685 | | | 2,557 | | | 2,670 | | | 620 | | | 559 | | | 1,626 | | | — | | | 8,717 | 90 days past due | | | 1,156 | | | 9,661 | | | 8,967 | | | 6,584 | | | 1,524 | | | 4,454 | | | — | | | 32,346 | Total Consumer owner-occupied | | $ | 1,185,976 | | $ | 663,338 | | $ | 1,031,664 | | $ | 2,417,653 | | $ | 1,645,729 | | $ | 1,552,680 | | $ | — | | $ | 8,497,040 | Consumer owner-occupied | | | | | | | | | | | | | | | | | | | | | | | | | Current-period gross charge-offs | | $ | 122 | | $ | 926 | | $ | 981 | | $ | 458 | | $ | 53 | | $ | 107 | | $ | — | | $ | 2,647 | | | | | | | | | | | | | | | | | | | | | | | | | | Home equity loans | | | | | | | | | | | | | | | | | | | | | | | | | Days past due: | | | | | | | | | | | | | | | | | | | | | | | | | Current | | $ | 1,627 | | $ | 5,549 | | $ | 2,618 | | $ | 3,463 | | $ | 1,308 | | $ | 13,961 | | $ | 1,794,239 | | $ | 1,822,765 | 30 days past due | | | 50 | | | 26 | | | 160 | | | 199 | | | — | | | 502 | | | 2,752 | | | 3,689 | 60 days past due | | | — | | | 50 | | | 212 | | | 74 | | | — | | | 108 | | | 1,615 | | | 2,059 | 90 days past due | | | — | | | 218 | | | 577 | | | 886 | | | 138 | | | 610 | | | 847 | | | 3,276 | Total Home equity loans | | $ | 1,677 | | $ | 5,843 | | $ | 3,567 | | $ | 4,622 | | $ | 1,446 | | $ | 15,181 | | $ | 1,799,453 | | $ | 1,831,789 | Home equity loans | | | | | | | | | | | | | | | | | | | | | | | | | Current-period gross charge-offs | | $ | — | | $ | 66 | | $ | — | | $ | 70 | | $ | — | | $ | 415 | | $ | — | | $ | 551 | | | | | | | | | | | | | | | | | | | | | | | | | | Consumer | | | | | | | | | | | | | | | | | | | | | | | | | Days past due: | | | | | | | | | | | | | | | | | | | | | | | | | Current | | $ | 193,165 | | $ | 134,608 | | $ | 156,266 | | $ | 154,801 | | $ | 62,652 | | $ | 156,314 | | $ | 91,731 | | $ | 949,537 | 30 days past due | | | 55 | | | 117 | | | 304 | | | 271 | | | 205 | | | 1,295 | | | 75 | | | 2,322 | 60 days past due | | | 41 | | | 70 | | | 427 | | | 50 | | | — | | | 268 | | | 65 | | | 921 | 90 days past due | | | 67 | | | 177 | | | 532 | | | 365 | | | 47 | | | 1,288 | | | 10 | | | 2,486 | Total consumer | | $ | 193,328 | | $ | 134,972 | | $ | 157,529 | | $ | 155,487 | | $ | 62,904 | | $ | 159,165 | | $ | 91,881 | | $ | 955,266 | Consumer | | | | | | | | | | | | | | | | | | | | | | | | | Current-period gross charge-offs | | $ | 390 | | $ | 912 | | $ | 910 | | $ | 776 | | $ | 114 | | $ | 2,655 | | $ | 6,007 | | $ | 11,764 | | | | | | | | | | | | | | | | | | | | | | | | | | Construction and land development | | | | | | | | | | | | | | | | | | | | | | | | | Days past due: | | | | | | | | | | | | | | | | | | | | | | | | | Current | | $ | 129,749 | | $ | 80,514 | | $ | 27,590 | | $ | 53,698 | | $ | 26,284 | | $ | 24,390 | | $ | — | | $ | 342,225 | 30 days past due | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | 60 days past due | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | 90 days past due | | | — | | | — | | | 154 | | | 463 | | | — | | | — | | | — | | | 617 | Total Construction and land development | | $ | 129,749 | | $ | 80,514 | | $ | 27,744 | | $ | 54,161 | | $ | 26,284 | | $ | 24,390 | | $ | — | | $ | 342,842 | Construction and land development | | | | | | | | | | | | | | | | | | | | | | | | | Current-period gross charge-offs | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | Other income producing property | | | | | | | | | | | | | | | | | | | | | | | | | Days past due: | | | | | | | | | | | | | | | | | | | | | | | | | Current | | $ | 3,638 | | $ | 2,037 | | $ | 7,756 | | $ | 50,859 | | $ | 16,477 | | $ | 31,521 | | $ | 86 | | $ | 112,374 | 30 days past due | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | 60 days past due | | | — | | | — | | | — | | | — | | | — | | | 16 | | | — | | | 16 | 90 days past due | | | — | | | 3 | | | — | | | 258 | | | — | | | 128 | | | — | | | 389 | Total other income producing property | | $ | 3,638 | | $ | 2,040 | | $ | 7,756 | | $ | 51,117 | | $ | 16,477 | | $ | 31,665 | | $ | 86 | | $ | 112,779 | Other income producing property | | | | | | | | | | | | | | | | | | | | | | | | | Current-period gross charge-offs | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | Total Consumer Loans | | | | | | | | | | | | | | | | | | | | | | | | | Days past due: | | | | | | | | | | | | | | | | | | | | | | | | | Current | | $ | 1,510,254 | | $ | 870,023 | | $ | 1,208,785 | | $ | 2,670,038 | | $ | 1,746,441 | | $ | 1,769,417 | | $ | 1,886,056 | | $ | 11,661,014 | 30 days past due | | | 2,165 | | | 3,948 | | | 5,936 | | | 3,702 | | | 4,131 | | | 5,166 | | | 2,827 | | | 27,875 | 60 days past due | | | 726 | | | 2,677 | | | 3,309 | | | 744 | | | 559 | | | 2,018 | | | 1,680 | | | 11,713 | 90 days past due | | | 1,223 | | | 10,059 | | | 10,230 | | | 8,556 | | | 1,709 | | | 6,480 | | | 857 | | | 39,114 | Total Consumer Loans | | $ | 1,514,368 | | $ | 886,707 | | $ | 1,228,260 | | $ | 2,683,040 | | $ | 1,752,840 | | $ | 1,783,081 | | $ | 1,891,420 | | $ | 11,739,716 | Consumer Loans | | | | | | | | | | | | | | | | | | | | | | | | | Current-period gross charge-offs | | $ | 512 | | $ | 1,904 | | $ | 1,891 | | $ | 1,304 | | $ | 167 | | $ | 3,177 | | $ | 6,007 | | $ | 14,962 |
The following table presents the credit risk profile by past due status of total loans by origination year as of and for the period ending December 31, 2025: | | | | | | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | | Term Loans Amortized Cost Basis by Origination Year | As of December 31, 2025 | | 2025 | | 2024 | | 2023 | | 2022 | | 2021 | | Prior | | Revolving | | Total | Total Loans | | $ | 9,243,653 | | $ | 4,722,088 | | $ | 4,528,671 | | $ | 10,162,437 | | $ | 6,426,402 | | $ | 8,550,891 | | $ | 4,964,385 | | $ | 48,598,527 | | | | | | | | | | | | | | | | | | | | | | | | | | Current-period gross charge-offs | | $ | 24,847 | | $ | 4,851 | | $ | 11,681 | | $ | 13,326 | | $ | 31,080 | | $ | 26,138 | | $ | 16,064 | | $ | 127,987 |
The following table presents an aging analysis of past due accruing loans, segregated by class, as of June 30, 2026 and December 31, 2025: | | | | | | | | | | | | | | | | | | | | | | | | 30 - 59 Days | | 60 - 89 Days | | 90+ Days | | Total | | | | Non- | | Total | (Dollars in thousands) | | Past Due | | Past Due | | Past Due | | Past Due | | Current | | Accruing | | Loans | June 30, 2026 | | | | | | | | | | | | | | | | | | | | | | Construction and land development | | $ | 2,475 | | $ | 2,099 | | $ | 108 | | $ | 4,682 | | $ | 2,972,485 | | $ | 5,801 | | $ | 2,982,968 | Commercial non-owner-occupied | | | 6,994 | | | 2,177 | | | — | | | 9,171 | | | 17,429,641 | | | 42,305 | | | 17,481,117 | Commercial owner-occupied | | | 11,999 | | | 6,207 | | | 346 | | | 18,552 | | | 7,792,320 | | | 41,519 | | | 7,852,391 | Consumer owner-occupied | | | 17,823 | | | 1,504 | | | 1,063 | | | 20,390 | | | 9,024,719 | | | 79,973 | | | 9,125,082 | Home equity loans | | | 2,678 | | | 1,808 | | | — | | | 4,486 | | | 1,895,492 | | | 9,042 | | | 1,909,020 | Commercial and industrial | | | 26,640 | | | 7,044 | | | 2,251 | | | 35,935 | | | 9,256,352 | | | 86,157 | | | 9,378,444 | Other income producing property | | | 743 | | | 701 | | | 28 | | | 1,472 | | | 1,171,477 | | | 2,389 | | | 1,175,338 | Consumer | | | 1,501 | | | 788 | | | — | | | 2,289 | | | 928,316 | | | 3,430 | | | 934,035 | Other loans | | | — | | | — | | | — | | | — | | | 8,477 | | | — | | | 8,477 | | | $ | 70,853 | | $ | 22,328 | | $ | 3,796 | | $ | 96,977 | | $ | 50,479,279 | | $ | 270,616 | | $ | 50,846,872 | December 31, 2025 | | | | | | | | | | | | | | | | | | | | | | Construction and land development | | $ | 3,018 | | $ | 472 | | $ | 139 | | $ | 3,629 | | $ | 2,537,171 | | $ | 7,560 | | $ | 2,548,360 | Commercial non-owner-occupied | | | 8,457 | | | 304 | | | 408 | | | 9,169 | | | 16,575,180 | | | 67,411 | | | 16,651,760 | Commercial owner-occupied | | | 14,821 | | | 4,651 | | | 865 | | | 20,337 | | | 7,516,697 | | | 39,957 | | | 7,576,991 | Consumer owner-occupied | | | 16,301 | | | 901 | | | — | | | 17,202 | | | 8,527,681 | | | 73,551 | | | 8,618,434 | Home equity loans | | | 2,739 | | | 1,226 | | | 1 | | | 3,966 | | | 1,819,479 | | | 8,344 | | | 1,831,789 | Commercial and industrial | | | 24,890 | | | 5,860 | | | 2,913 | | | 33,663 | | | 9,052,979 | | | 94,766 | | | 9,181,408 | Other income producing property | | | 1,582 | | | 827 | | | 615 | | | 3,024 | | | 1,227,020 | | | 2,109 | | | 1,232,153 | Consumer | | | 2,002 | | | 793 | | | — | | | 2,795 | | | 949,014 | | | 3,457 | | | 955,266 | Other loans | | | — | | | — | | | — | | | — | | | 2,366 | | | — | | | 2,366 | | | $ | 73,810 | | $ | 15,034 | | $ | 4,941 | | $ | 93,785 | | $ | 48,207,587 | | $ | 297,155 | | $ | 48,598,527 |
The following table is a summary of information pertaining to nonaccrual loans by class, including loans modified for borrowers with financial difficulty as of June 30, 2026, and December 31, 2025: | | | | | | | | | | | | | | | | June 30, | | Greater than | | Non-accrual | | December 31, | | (Dollars in thousands) | | 2026 | | 90 Days Accruing(1) | | with no allowance(1) | | 2025 | | Construction and land development | | $ | 5,801 | | $ | 108 | | $ | 3,796 | | $ | 7,560 | | Commercial non-owner-occupied | | | 42,305 | | | — | | | 39,945 | | | 67,411 | | Commercial owner-occupied real estate | | | 41,519 | | | 346 | | | 10,212 | | | 39,957 | | Consumer owner-occupied | | | 79,973 | | | 1,063 | | | 1,484 | | | 73,551 | | Home equity loans | | | 9,042 | | | — | | | — | | | 8,344 | | Commercial and industrial | | | 86,157 | | | 2,251 | | | 8,360 | | | 94,766 | | Other income producing property | | | 2,389 | | | 28 | | | — | | | 2,109 | | Consumer | | | 3,430 | | | — | | | — | | | 3,457 | | Total loans on nonaccrual status | | $ | 270,616 | | $ | 3,796 | | $ | 63,797 | | $ | 297,155 | |
| (1) | Greater than 90 days accruing and non-accrual with no allowance loans at June 30, 2026. |
There is no interest income recognized during the period on nonaccrual loans. The Company follows its nonaccrual policy by reversing contractual interest income in the income statement when the Company places a loan on nonaccrual status. Loans on nonaccrual status in which there is no allowance assigned are individually evaluated loans that do not carry a specific reserve. See Note 1 — Summary of Significant Accounting Policies of the 2025 Form 10-K for further detailed descriptions on individually evaluated loans. The following is a summary of collateral dependent loans, by type of collateral, and the extent to which they are collateralized during the period: | | | | | | | | | | | | | | | | | | June 30, | | Collateral | | | December 31, | | Collateral | | | (Dollars in thousands) | | 2026 | | Coverage | % | | 2025 | | Coverage | % | | Construction and land development | | | | | | | | | | | | | | | | Other | | $ | 3,796 | | $ | 7,725 | 204% | | $ | 5,778 | | $ | 7,725 | 134% | | Commercial owner-occupied real estate | | | | | | | | | | | | | | | | Church | | | 3,260 | | | 5,288 | 162% | | | 3,315 | | | 6,075 | 183% | | Other | | | 6,952 | | | 15,363 | 221% | | | 6,157 | | | 9,549 | 155% | | Commercial non-owner-occupied real estate | | | | | | | | | | | | | | | | Hotel | | | 8,420 | | | 9,720 | 115% | | | — | | | — | — | | Retail | | | 3,561 | | | 4,549 | 128% | | | 3,451 | | | 5,251 | 152% | | Other | | | 2,444 | | | 3,438 | 141% | | | 1,250 | | | 1,512 | 121% | | Office | | | 1,860 | | | 1,908 | 103% | | | 12,250 | | | 22,015 | 180% | | Multifamily | | | 23,660 | | | 29,592 | 125% | | | 44,860 | | | 50,894 | 113% | | Commercial and industrial | | | | | | | | | | | | | | | | Other | | | 37,147 | | | 39,213 | 106% | | | 49,491 | | | 46,539 | 94% | | Other income producing property | | | | | | | | | | | | | | | | 1-4 family investment property | | | — | | | — | — | | | 717 | | | 545 | 76% | | Consumer owner-occupied | | | | | | | | | | | | | | | | 1st Mtg Residential | | | 1,484 | | | 2,250 | 152% | | | 1,484 | | | 2,250 | 152% | | Total collateral dependent loans | | $ | 92,584 | | $ | 119,046 | | | $ | 128,753 | | $ | 152,355 | | |
The Bank designates individually evaluated loans on non-accrual with a net book balance exceeding the designated threshold as collateral dependent loans. Collateral dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. These loans do not share common risk characteristics and are not included within the collectively evaluated loans for determining the ACL. The Bank has adopted the collateral maintenance practical expedient to measure the ACL based on the fair value of collateral. The ACL is calculated on an individual loan basis based on the shortfall between the fair value of the loan's collateral, which is adjusted for selling costs, and amortized cost. If the fair value of the collateral exceeds the amortized cost, no allowance is required. The Bank’s threshold for individually evaluated loans is $1.0 million. The changes above in collateral percentage are generally due to appraisal value updates or changes in the number of loans within the asset class and collateral type. Overall collateral dependent loans decreased $36.2 million during the six months ended June 30, 2026. Loans on nonaccrual status at the date of modification are initially classified as nonaccrual. Loans on accruing status at the date of modification are initially classified as accruing if the note is reasonably assured of repayment and performance is expected in accordance with its modified terms. Such loans may be designated as nonaccrual loans subsequent to the modification date if reasonable doubt exists as to the collection of interest or principal under the modification agreement. Nonaccrual loans are returned to accruing status when there is economic substance to the modification, there is documented credit evaluation of the borrower’s financial condition, the remaining balance is reasonably assured of repayment in accordance with its modified terms, and the borrower has demonstrated sustained repayment performance in accordance with the modified terms for a reasonable period of time (generally a minimum of six months). See Note 1 — Summary of Significant Accounting Policies of the 2025 Form 10-K for how such modifications are factored into the determination of the ACL for the periods presented above. The following tables present loans designated as modifications made to borrowers experiencing financial difficulty during the three and six months ended June 30, 2026, and 2025, respectively. The loans are segregated by type of modification and asset class, indicating the financial effect of the modifications. There were no combination interest rate reduction and payment delay modifications for the three and six months ended June 30, 2026. There were no combination interest rate reduction and payment delay modifications for the three months ended June 30, 2025. | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | | | 2026 | | 2025 | | | | | | | | Reduction in Weighted | | | | | | Reduction in Weighted | | | | Amortized | | % of Total | | Average Contractual | | Amortized | | % of Total | | Average Contractual | | (Dollars in thousands) | | Cost | | Asset Class | | Interest Rate | | Cost | | Asset Class | | Interest Rate | | Interest rate reduction | | | | | | | | | | | | | | | | Commercial owner-occupied real estate | | $ | 316 | | 0.00% | | 1.00% | | $ | 332 | | 0.00% | | 1.55% | | Commercial and industrial | | | 534 | | 0.01% | | 1.32% | | | — | | — | | — | | Total interest rate reductions | | $ | 850 | | | | | | $ | 332 | | | | | |
| | | | | | | | | | | | | | | | | | Six Months Ended June 30, | | | | 2026 | | 2025 | | | | | | | | Reduction in Weighted | | | | | | Reduction in Weighted | | | | Amortized | | % of Total | | Average Contractual | | Amortized | | % of Total | | Average Contractual | | (Dollars in thousands) | | Cost | | Asset Class | | Interest Rate | | Cost | | Asset Class | | Interest Rate | | Interest rate reduction | | | | | | | | | | | | | | | | Construction and land development | | $ | 1,813 | | 0.06% | | 1.75% | | $ | — | | — | | | | Commercial non-owner occupied | | | 1,124 | | 0.01% | | 0.81% | | | 15,045 | | 0.10% | | 0.86% | | Commercial owner-occupied real estate | | | 316 | | 0.00% | | 1.00% | | | 332 | | 0.00% | | 1.55% | | Commercial and industrial | | | 808 | | 0.01% | | 1.00% | | | 378 | | 0.00% | | 1.75% | | Total interest rate reductions | | $ | 4,061 | | | | | | $ | 15,755 | | | | | |
| | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | | | 2026 | | 2025 | | | | | | | | Increase in | | | | | | Increase in | | | | Amortized | | % of Total | | Weighted Average | | Amortized | | % of Total | | Weighted Average | | (Dollars in thousands) | | Cost | | Asset Class | | Life of Loan | | Cost | | Asset Class | | Life of Loan | | Term extension | | | | | | | | | | | | | | | | Construction and land development | | $ | 1,459 | | 0.05% | | 11 months | | $ | — | | — | | — | | Commercial non-owner occupied | | | 32,962 | | 0.19% | | 5 months | | | — | | — | | — | | Commercial owner-occupied real estate | | | 1,215 | | 0.02% | | 7 months | | | — | | — | | — | | Consumer owner-occupied | | | 2,751 | | 0.03% | | 5 months | | | 4,269 | | 0.05% | | 4 months | | Commercial and industrial | | | 16,105 | | 0.17% | | 4 months | | | 9,245 | | 0.11% | | 4 months | | Other income producing property | | | 2,443 | | 0.21% | | 3 months | | | — | | — | | — | | Total term extensions | | $ | 56,935 | | | | | | $ | 13,514 | | | | | |
| | | | | | | | | | | | | | | | | | Six Months Ended June 30, | | | | 2026 | | 2025 | | | | | | | | Increase in | | | | | | Increase in | | | | Amortized | | % of Total | | Weighted Average | | Amortized | | % of Total | | Weighted Average | | (Dollars in thousands) | | Cost | | Asset Class | | Life of Loan | | Cost | | Asset Class | | Life of Loan | | Term extension | | | | | | | | | | | | | | | | Construction and land development | | $ | 1,459 | | 0.05% | | 11 months | | $ | 286 | | 0.01% | | 9 months | | Commercial non-owner-occupied | | | 41,111 | | 0.24% | | 6 months | | | — | | — | | — | | Commercial owner-occupied real estate | | | 4,784 | | 0.06% | | 7 months | | | — | | — | | — | | Consumer owner-occupied | | | 3,619 | | 0.04% | | 4 months | | | 4,269 | | 0.05% | | 4 months | | Commercial and industrial | | | 30,924 | | 0.33% | | 5 months | | | 9,245 | | 0.11% | | 4 months | | Other income producing property | | | 2,443 | | 0.21% | | 3 months | | | — | | — | | — | | Total term extensions | | $ | 84,340 | | | | | | $ | 13,800 | | | | | |
| | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | | | 2026 | | 2025 | | | | | | | | Weighted Average of | | | | | | Weighted Average of | | | | Amortized | | % of Total | | Months Payments | | Amortized | | % of Total | | Months Payments | | (Dollars in thousands) | | Cost | | Asset Class | | Were Deferred | | Cost | | Asset Class | | Were Deferred | | Other-than-insignificant payment delay | | | | | | | | | | | | | | | | Commercial non-owner occupied | | $ | 67,136 | | 0.38% | | 6 months | | $ | — | | — | | — | | Commercial owner-occupied real estate | | | 2,784 | | 0.04% | | 4 months | | | 5,404 | | 0.07% | | 6 months | | Consumer owner occupied | | | 373 | | 0.00% | | 2 months | | | — | | — | | — | | Commercial and industrial | | | 5,928 | | 0.06% | | 24 months | | | 1,610 | | 0.02% | | 6 months | | Other income producing property | | | 266 | | 0.02% | | 60 months | | | — | | — | | — | | Total payment delays | | $ | 76,487 | | | | | | $ | 7,014 | | | | | |
| | | | | | | | | | | | | | | | | | Six Months Ended June 30, | | | | 2026 | | 2025 | | | | | | | | Weighted Average of | | | | | | Weighted Average of | | | | Amortized | | % of Total | | Months Payments | | Amortized | | % of Total | | Months Payments | | (Dollars in thousands) | | Cost | | Asset Class | | Were Deferred | | Cost | | Asset Class | | Were Deferred | | Other-than-insignificant payment delay | | | | | | | | | | | | | | | | Commercial non-owner-occupied | | $ | 135,258 | | 0.77% | | 7 months | | $ | — | | — | | — | | Commercial owner-occupied real estate | | | 3,840 | | 0.05% | | 5 months | | | 5,713 | | 0.08% | | 7 months | | Consumer owner-occupied | | | 373 | | 0.00% | | 2 months | | | — | | — | | — | | Commercial and industrial | | | 13,128 | | 0.14% | | 16 months | | | 1,610 | | 0.02% | | 6 months | | Other income producing property | | | 266 | | 0.02% | | 60 months | | | — | | — | | | | Total payment delays | | $ | 152,865 | | | | | | $ | 7,323 | | | | | |
| | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | | | 2026 | | 2025 | | | | | | Reduction in | | Increase in | | | | Reduction in | | Increase in | | | | | | Weighted Average | | Weighted | | | | Weighted Average | | Weighted | | | | Amortized | | Contractual | | Average | | Amortized | | Contractual | | Average | | (Dollars in thousands) | | Cost | | Interest Rate | | Life of Loan | | Cost | | Interest Rate | | Life of Loan | | Combination - Term Extension and Interest Rate Reduction | | | | | | | | | | | | | | | | Commercial non-owner occupied | | $ | 24,397 | | 0.57% | | 36 months | | $ | — | | — | | — | | Consumer owner-occupied | | | — | | — | | — | | | 363 | | 1.50% | | 18 months | | Total term extension and interest rate reduction combinations | | $ | 24,397 | | | | | | $ | 363 | | | | | |
| | | | | | | | | | | | | | | | | | Six Months Ended June 30, | | | | 2026 | | 2025 | | | | | | Reduction in | | Increase in | | | | Reduction in | | Increase in | | | | | | Weighted Average | | Weighted | | | | Weighted Average | | Weighted | | | | Amortized | | Contractual | | Average | | Amortized | | Contractual | | Average | | (Dollars in thousands) | | Cost | | Interest Rate | | Life of Loan | | Cost | | Interest Rate | | Life of Loan | | Combination - Term Extension and Interest Rate Reduction | | | | | | | | | | | | | | | | Commercial non-owner occupied | | $ | 24,397 | | 0.57% | | 36 months | | $ | — | | — | | — | | Consumer owner-occupied | | | 1,218 | | 0.54% | | 37 months | | | 853 | | 3.01% | | 9 months | | Total term extension and interest rate reduction combinations | | $ | 25,615 | | | | | | $ | 853 | | | | | |
| | | | | | | | | | | | | | | | | | Six Months Ended June 30, | | | | 2026 | | 2025 | | | | | | Reduction in | | Increase in | | | | | | Increase in | | | | | | Weighted | | Weighted | | | | Reduction in | | Weighted | | | | | | Average | | Average | | | | Average | | Average | | | | Amortized | | Contractual | | Amortization | | Amortized | | Contractual | | Amortization | | (Dollars in thousands) | | Cost | | Interest Rate | | Term | | Cost | | Interest Rate | | Term | | Combination - Interest Rate Reduction and Payment Delay | | | | | | | | | | | | | | | | Commercial and industrial | | $ | — | | — | | — | | $ | 1,177 | | 0.75% | | 12 months | | Total interest rate reduction and payment delay combinations | | $ | — | | | | | | $ | 1,177 | | | | | |
The Bank on occasion will enter into modification agreements which extend the maturity payoff on a loan or reduce the interest rate for borrowers willing to continue to pay, to minimize losses for the Bank. At June 30, 2026, the Company had $6.8 million in remaining commitments to lend additional funds on loans to borrowers experiencing financial difficulty and modified during the current reporting period. The following table presents the changes in status of loans modified within the previous twelve months to borrowers experiencing financial difficulty, as of June 30, 2026 and 2025, by type of modification. The subsequent defaults were all due to past due status greater than 60 days. | | | | | | | | | | | | | | | | | | | | | | June 30, | | | | 2026 | | 2025 | | | | Paying Under | | | | | | Paying Under | | | | | | | | Restructured | | Converted to | | Foreclosures | | Restructured | | Converted to | | Foreclosures | | | | Terms | | Nonaccrual | | and Defaults | | Terms | | Nonaccrual | | and Defaults | | | | Amortized | | Amortized | | Amortized | | Amortized | | Amortized | | Amortized | | (Dollars in thousands) | | Cost | | Cost | | Cost | | Cost | | Cost | | Cost | | Interest rate reduction | | | | | | | | | | | | | | | | | | | | Construction and land development | | $ | 1,813 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | Commercial non-owner-occupied | | | 2,058 | | | — | | | — | | | 15,045 | | | — | | | — | | Commercial owner-occupied real estate | | | 722 | | | — | | | — | | | 332 | | | — | | | — | | Commercial and industrial | | | 808 | | | — | | | — | | | 378 | | | — | | | — | | Consumer owner-occupied | | | — | | | — | | | — | | | — | | | — | | | 482 | | Total interest rate reductions | | $ | 5,401 | | $ | — | | $ | — | | $ | 15,755 | | $ | — | | $ | 482 | | | | | | | | | | | | | | | | | | | | | | Term extension | | | | | | | | | | | | | | | | | | | | Construction and land development | | $ | 5,307 | | $ | — | | $ | 258 | | $ | 286 | | $ | — | | $ | — | | Commercial non-owner-occupied | | | 62,054 | | | — | | | — | | | — | | | — | | | — | | Commercial owner-occupied real estate | | | 5,201 | | | — | | | — | | | — | | | — | | | — | | Commercial and industrial | | | 30,924 | | | — | | | 356 | | | 9,245 | | | — | | | — | | Other income producing property | | | 2,443 | | | — | | | — | | | — | | | — | | | — | | Consumer owner-occupied | | | 4,816 | | | 265 | | | 2,215 | | | 5,876 | | | — | | | 298 | | Total term extensions | | $ | 110,745 | | $ | 265 | | $ | 2,829 | | $ | 15,407 | | $ | — | | $ | 298 | | | | | | | | | | | | | | | | | | | | | | Other-than-insignificant payment delay | | | | | | | | | | | | | | | | | | | | Commercial non-owner occupied | | $ | 143,902 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | Commercial owner-occupied real estate | | | 3,840 | | | — | | | — | | | 6,087 | | | — | | | — | | Commercial and industrial | | | 13,128 | | | — | | | — | | | 1,610 | | | — | | | — | | Other income producing property | | | 266 | | | — | | | — | | | — | | | — | | | — | | Consumer owner-occupied | | | 373 | | | — | | | — | | | — | | | — | | | — | | Total payment delays | | $ | 161,509 | | $ | — | | $ | — | | $ | 7,697 | | $ | — | | $ | — | | | | | | | | | | | | | | | | | | | | | | Term Extension and Interest Rate Reduction | | | | | | | | | | | | | | | | | | | | Commercial non-owner occupied | | $ | 24,397 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | Consumer owner-occupied | | | 1,733 | | | — | | | 560 | | | 1,220 | | | — | | | — | | Total term extension and interest rate combinations | | $ | 26,130 | | $ | — | | $ | 560 | | $ | 1,220 | | $ | — | | $ | — | | | | | | | | | | | | | | | | | | | | | | Term Extension and Payment Delay | | | | | | | | | | | | | | | | | | | | Commercial non-owner occupied | | $ | 2,005 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | Commercial and industrial | | | 224 | | | — | | | — | | | 1,177 | | | — | | | — | | Total term extension and payment delay combinations | | $ | 2,229 | | $ | — | | $ | — | | $ | 1,177 | | $ | — | | $ | — | | | | | | | | | | | | | | | | | | | | | | Interest Rate Reduction and Payment Delay | | | | | | | | | | | | | | | | | | | | Commercial non-owner occupied | | $ | 29,676 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | Total interest rate reduction and payment delay combinations | | $ | 29,676 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | | | $ | 335,690 | | $ | 265 | | $ | 3,389 | | $ | 41,256 | | $ | — | | $ | 780 | |
The following table depicts the performance of loans modified within the previous twelve months to borrowers experiencing financial difficulty, as of June 30, 2026 and 2025: | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | June 30, 2025 | | | | Payment Status (Amortized Cost Basis) | | Payment Status (Amortized Cost Basis) | | | | | | 30-89 Days | | 90+ Days | | | | 30-89 Days | | 90+ Days | | (Dollars in thousands) | | Current | | Past Due | | Past Due | | Current | | Past Due | | Past Due | | Construction and land development | | $ | 7,120 | | $ | 258 | | $ | — | | $ | 286 | | $ | — | | $ | — | | Commercial non-owner-occupied | | | 262,086 | | | 2,005 | | | — | | | 15,045 | | | — | | | — | | Commercial owner-occupied real estate | | | 6,950 | | | 2,813 | | | — | | | 6,418 | | | — | | | — | | Commercial and industrial | | | 43,444 | | | 1,640 | | | 356 | | | 12,410 | | | — | | | — | | Other income producing property | | | 2,709 | | | — | | | — | | | — | | | — | | | — | | Consumer owner-occupied | | | 7,188 | | | 926 | | | 1,849 | | | 6,740 | | | 655 | | | 482 | | Total | | $ | 329,497 | | $ | 7,642 | | $ | 2,205 | | $ | 40,899 | | $ | 655 | | $ | 482 | |
|