v3.26.1
Loans and Allowance for Credit Losses (Tables)
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
Schedule of Amounts Recognized in Balance Sheet

Loans in the accompanying consolidated balance sheets consisted of the following:

(Dollars in thousands)

 

June 30, 2026

 

 

December 31, 2025

 

Real estate loans:

 

 

 

 

 

 

Non-farm non-residential owner occupied

 

$

583,989

 

 

$

434,715

 

Non-farm non-residential non-owner occupied

 

 

932,147

 

 

 

710,401

 

Residential

 

 

530,189

 

 

 

333,419

 

Construction, development & other

 

 

887,805

 

 

 

823,353

 

Farmland

 

 

32,898

 

 

 

26,485

 

Commercial & industrial

 

 

2,369,582

 

 

 

1,906,616

 

Consumer

 

 

1,871

 

 

 

1,576

 

Municipal and other

 

 

97,933

 

 

 

158,186

 

 

 

5,436,414

 

 

 

4,394,751

 

Allowance for credit losses

 

 

(53,591

)

 

 

(43,949

)

Loans, net

 

$

5,382,823

 

 

$

4,350,802

 
Schedule of Non-accrual, Non-accrual Without Specifc ACL and Accruing Past Due Loans, Segregated by Class of Loans

Non-accrual loans, non-accrual loans without a specific ACL, and accruing loans past due 90 days or more segregated by class of loans were as follows:

 

 

June 30, 2026

 

 

December 31, 2025

 

(Dollars in thousands)

 

Non-accrual

 

 

Non-accrual loans with no ACL

 

 

Accruing loans
past due 90
days or more

 

 

Non-accrual

 

 

Non-accrual loans with no ACL

 

 

Accruing loans
past due 90
days or more

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential owner occupied

 

$

3,320

 

 

$

846

 

 

$

500

 

 

$

1,235

 

 

$

1,235

 

 

$

679

 

Non-farm non-residential non-owner occupied

 

 

5,584

 

 

 

5,584

 

 

 

—

 

 

 

99

 

 

 

99

 

 

 

5,503

 

Residential

 

 

198

 

 

 

198

 

 

 

2,509

 

 

 

387

 

 

 

209

 

 

 

2,023

 

Construction, development & other

 

 

—

 

 

 

—

 

 

 

1,136

 

 

 

—

 

 

 

—

 

 

 

1,847

 

Commercial & industrial

 

 

12,455

 

 

 

12,196

 

 

 

1,410

 

 

 

8,399

 

 

 

8,120

 

 

 

1,308

 

 

$

21,557

 

 

$

18,824

 

 

$

5,555

 

 

$

10,120

 

 

$

9,663

 

 

$

11,360

 
Schedule of Aging Past Due Loans, Segregated by Class of Loans

An age analysis of past due loans, segregated by class of loans, was as follows:

(Dollars in thousands)

 

30-59
days

 

 

60-89
days

 

 

Over 90
days

 

 

Total
past due

 

 

Total
current

 

 

Total
loans

 

June 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential
   owner occupied

 

$

1,548

 

 

$

4,314

 

 

$

3,820

 

 

$

9,682

 

 

$

574,307

 

 

$

583,989

 

Non-farm non-residential
   non-owner occupied

 

 

510

 

 

 

3,691

 

 

 

5,584

 

 

 

9,785

 

 

 

922,362

 

 

 

932,147

 

Residential

 

 

441

 

 

 

178

 

 

 

2,707

 

 

 

3,326

 

 

 

526,863

 

 

 

530,189

 

Construction,
   development & other

 

 

2,353

 

 

 

2,812

 

 

 

1,136

 

 

 

6,301

 

 

 

881,504

 

 

 

887,805

 

Farmland

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

32,898

 

 

 

32,898

 

Commercial & industrial

 

 

1,026

 

 

 

2,675

 

 

 

13,865

 

 

 

17,566

 

 

 

2,352,016

 

 

 

2,369,582

 

Consumer

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,871

 

 

 

1,871

 

Municipal and other

 

 

64

 

 

 

—

 

 

 

—

 

 

 

64

 

 

 

97,869

 

 

 

97,933

 

 

$

5,942

 

 

$

13,670

 

 

$

27,112

 

 

$

46,724

 

 

$

5,389,690

 

 

$

5,436,414

 

 

December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential
   owner occupied

 

$

5,695

 

 

$

816

 

 

$

1,914

 

 

$

8,425

 

 

$

426,290

 

 

$

434,715

 

Non-farm non-residential
   non-owner occupied

 

 

5,094

 

 

 

497

 

 

 

5,602

 

 

 

11,193

 

 

 

699,208

 

 

 

710,401

 

Residential

 

 

5,512

 

 

 

—

 

 

 

2,410

 

 

 

7,922

 

 

 

325,497

 

 

 

333,419

 

Construction,
   development & other

 

 

—

 

 

 

603

 

 

 

1,847

 

 

 

2,450

 

 

 

820,903

 

 

 

823,353

 

Farmland

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

26,485

 

 

 

26,485

 

Commercial & industrial

 

 

3,517

 

 

 

558

 

 

 

9,707

 

 

 

13,782

 

 

 

1,892,834

 

 

 

1,906,616

 

Consumer

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,576

 

 

 

1,576

 

Municipal and other

 

 

60

 

 

 

24

 

 

 

—

 

 

 

84

 

 

 

158,102

 

 

 

158,186

 

 

$

19,878

 

 

$

2,498

 

 

$

21,480

 

 

$

43,856

 

 

$

4,350,895

 

 

$

4,394,751

 
Summary of Loans Modified for Borrowers Experiencing Financial Difficulty

The following table summarizes loan modifications made to borrowers experiencing financial difficulty for the six months ended June 30, 2026 and the year ended December 31, 2025:

 

 

Types of modifications to borrowers experiencing financial difficulty

 

(Dollars in thousands)

 

Number
 of
 loans

 

 

Post-
restructured
recorded
investment

 

 

Total
class of loan

 

 

Principal forgiveness

 

 

Term extension

 

 

WAR (*)

 

 

Payment
deferral

 

 

Other
payment modifications

 

 

Combined
term extension and payment deferral

 

June 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential owner occupied

 

 

1

 

 

$

2,475

 

 

 

0.4

%

 

$

—

 

 

$

—

 

 

 

0.00

%

 

$

—

 

 

$

2,475

 

 

$

—

 

Residential

 

 

3

 

 

 

1,672

 

 

 

0.3

%

 

 

—

 

 

 

1,672

 

 

 

0.00

%

 

 

—

 

 

 

—

 

 

 

—

 

Commercial & industrial

 

 

2

 

 

 

3,409

 

 

 

0.1

%

 

 

—

 

 

 

500

 

 

 

1.73

%

 

 

—

 

 

 

—

 

 

 

2,909

 

 

 

 

6

 

 

$

7,556

 

 

 

0.1

%

 

$

—

 

 

$

2,172

 

 

 

 

 

$

—

 

 

$

2,475

 

 

$

2,909

 

December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & industrial

 

 

1

 

 

$

2,812

 

 

 

0.1

%

 

 

—

 

 

 

2,812

 

 

 

0.0

%

 

$

—

 

 

$

—

 

 

$

—

 

(*) Weighted average rate decrease.
Summary of Internal Ratings of Loans

The following tables summarize the Company’s internal ratings of its loans at June 30, 2026 and December 31, 2025:

(Dollars in thousands)

 

Pass

 

 

Special
Mention

 

 

Substandard

 

 

Purchased
Credit
Deteriorated

 

 

Doubtful

 

 

Total

 

June 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential
   owner occupied

 

$

557,257

 

 

$

9,492

 

 

$

14,765

 

 

$

2,475

 

 

$

—

 

 

$

583,989

 

Non-farm non-residential
   non-owner occupied

 

 

891,549

 

 

 

21,495

 

 

 

16,142

 

 

 

2,961

 

 

 

—

 

 

 

932,147

 

Residential

 

 

529,096

 

 

 

—

 

 

 

1,093

 

 

 

—

 

 

 

—

 

 

 

530,189

 

Construction,
   development & other

 

 

879,654

 

 

 

5,339

 

 

 

2,812

 

 

 

—

 

 

 

—

 

 

 

887,805

 

Farmland

 

 

32,147

 

 

 

—

 

 

 

751

 

 

 

—

 

 

 

—

 

 

 

32,898

 

Commercial & industrial

 

 

2,337,928

 

 

 

11,278

 

 

 

18,507

 

 

 

1,869

 

 

 

—

 

 

 

2,369,582

 

Consumer

 

 

1,842

 

 

 

29

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,871

 

Municipal and other

 

 

97,933

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

97,933

 

 

$

5,327,406

 

 

$

47,633

 

 

$

54,070

 

 

$

7,305

 

 

$

—

 

 

$

5,436,414

 

 

(Dollars in thousands)

 

Pass

 

 

Special
Mention

 

 

Substandard

 

 

Doubtful

 

 

Total

 

December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential
   owner occupied

 

$

414,506

 

 

$

6,725

 

 

$

13,484

 

 

$

—

 

 

$

434,715

 

Non-farm non-residential
   non-owner occupied

 

 

689,381

 

 

 

4,619

 

 

 

16,401

 

 

 

—

 

 

 

710,401

 

Residential

 

 

333,055

 

 

 

—

 

 

 

364

 

 

 

—

 

 

 

333,419

 

Construction,
   development & other

 

 

819,938

 

 

 

—

 

 

 

3,415

 

 

 

—

 

 

 

823,353

 

Farmland

 

 

25,719

 

 

 

766

 

 

 

—

 

 

 

—

 

 

 

26,485

 

Commercial & industrial

 

 

1,863,861

 

 

 

34,836

 

 

 

7,919

 

 

 

—

 

 

 

1,906,616

 

Consumer

 

 

1,542

 

 

 

34

 

 

 

—

 

 

 

—

 

 

 

1,576

 

Municipal and other

 

 

158,186

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

158,186

 

 

$

4,306,188

 

 

$

46,980

 

 

$

41,583

 

 

$

—

 

 

$

4,394,751

 

 

The following tables summarize the Company's loans by risk grades, loan class and vintage, at June 30, 2026 and December 31, 2025:

 

 

Term Loans Amortized Cost Basis by Origination Year

 

 

Revolving Loans Amortized

 

 

 

 

(Dollars in thousands)

 

2026

 

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

Prior Years

 

 

Cost Basis

 

 

Total

 

June 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential
   owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

52,202

 

 

$

124,409

 

 

$

77,440

 

 

$

39,952

 

 

$

90,476

 

 

$

150,038

 

 

$

22,740

 

 

$

557,257

 

Special Mention

 

 

—

 

 

 

2,628

 

 

 

—

 

 

 

—

 

 

 

1,018

 

 

 

5,846

 

 

 

—

 

 

 

9,492

 

Substandard

 

 

287

 

 

 

5,145

 

 

 

500

 

 

 

—

 

 

 

4,088

 

 

 

4,745

 

 

 

—

 

 

 

14,765

 

Purchased Credit Deteriorated

 

 

—

 

 

 

—

 

 

 

2,475

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,475

 

Total Non-Farm non-residential owner-occupied

 

$

52,489

 

 

$

132,182

 

 

$

80,415

 

 

$

39,952

 

 

$

95,582

 

 

$

160,629

 

 

$

22,740

 

 

$

583,989

 

Non-farm non-residential
   non-owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

127,312

 

 

$

246,535

 

 

$

101,965

 

 

$

62,737

 

 

$

156,573

 

 

$

169,119

 

 

$

27,308

 

 

$

891,549

 

Special Mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

18,907

 

 

 

2,588

 

 

 

—

 

 

 

21,495

 

Substandard

 

 

4,240

 

 

 

5,500

 

 

 

85

 

 

 

—

 

 

 

—

 

 

 

6,317

 

 

 

—

 

 

 

16,142

 

Purchased Credit Deteriorated

 

 

2,961

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,961

 

Total Non-Farm non-residential non owner-occupied

 

$

134,513

 

 

$

252,035

 

 

$

102,050

 

 

$

62,737

 

 

$

175,480

 

 

$

178,024

 

 

$

27,308

 

 

$

932,147

 

Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

65,178

 

 

$

81,742

 

 

$

47,487

 

 

$

75,671

 

 

$

128,655

 

 

$

92,903

 

 

$

37,460

 

 

$

529,096

 

Substandard

 

 

—

 

 

 

70

 

 

 

—

 

 

 

—

 

 

 

1,008

 

 

 

15

 

 

 

—

 

 

 

1,093

 

Total Residential

 

$

65,178

 

 

$

81,812

 

 

$

47,487

 

 

$

75,671

 

 

$

129,663

 

 

$

92,918

 

 

$

37,460

 

 

$

530,189

 

Construction,
   development & other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

48,311

 

 

$

165,858

 

 

$

82,303

 

 

$

37,432

 

 

$

9,483

 

 

$

7,413

 

 

$

528,854

 

 

$

879,654

 

Special Mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,339

 

 

 

—

 

 

 

—

 

 

 

5,339

 

Substandard

 

 

—

 

 

 

2,812

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,812

 

Total Construction, development & other

 

$

48,311

 

 

$

168,670

 

 

$

82,303

 

 

$

37,432

 

 

$

14,822

 

 

$

7,413

 

 

$

528,854

 

 

$

887,805

 

Farmland

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

9,022

 

 

$

2,032

 

 

$

3,135

 

 

$

8,155

 

 

$

7,970

 

 

$

1,130

 

 

$

703

 

 

$

32,147

 

Substandard

 

 

751

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

751

 

Total Farmland

 

$

9,773

 

 

$

2,032

 

 

$

3,135

 

 

$

8,155

 

 

$

7,970

 

 

$

1,130

 

 

$

703

 

 

$

32,898

 

Commercial & industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

219,684

 

 

$

342,741

 

 

$

87,920

 

 

$

62,194

 

 

$

62,557

 

 

$

36,205

 

 

$

1,526,627

 

 

$

2,337,928

 

Special Mention

 

 

—

 

 

 

541

 

 

 

757

 

 

 

8,069

 

 

 

—

 

 

 

—

 

 

 

1,911

 

 

 

11,278

 

Substandard

 

 

5,403

 

 

 

1,128

 

 

 

300

 

 

 

2,792

 

 

 

907

 

 

 

617

 

 

 

7,360

 

 

 

18,507

 

Purchased Credit Deteriorated

 

 

—

 

 

 

335

 

 

 

159

 

 

 

—

 

 

 

1,340

 

 

 

—

 

 

 

35

 

 

 

1,869

 

Total Commercial & industrial

 

$

225,087

 

 

$

344,745

 

 

$

89,136

 

 

$

73,055

 

 

$

64,804

 

 

$

36,822

 

 

$

1,535,933

 

 

$

2,369,582

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

157

 

 

$

732

 

 

$

133

 

 

$

458

 

 

$

137

 

 

$

225

 

 

$

—

 

 

$

1,842

 

Special Mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

29

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

29

 

Total Consumer

 

$

157

 

 

$

732

 

 

$

133

 

 

$

487

 

 

$

137

 

 

$

225

 

 

$

—

 

 

$

1,871

 

Municipal and other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

380

 

 

$

2,196

 

 

$

85

 

 

$

17,415

 

 

$

2,180

 

 

$

127

 

 

$

75,550

 

 

$

97,933

 

Total Municipal and other

 

$

380

 

 

$

2,196

 

 

$

85

 

 

$

17,415

 

 

$

2,180

 

 

$

127

 

 

$

75,550

 

 

$

97,933

 

Total Loans

 

$

535,888

 

 

$

984,404

 

 

$

404,744

 

 

$

314,904

 

 

$

490,638

 

 

$

477,288

 

 

$

2,228,548

 

 

$

5,436,414

 

 

 

 

Term Loans Amortized Cost Basis by Origination Year

 

 

Revolving Loans Amortized

 

 

 

 

(Dollars in thousands)

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

Prior Years

 

 

Cost Basis

 

 

Total

 

December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential
   owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

100,756

 

 

$

64,629

 

 

$

23,658

 

 

$

64,818

 

 

$

81,912

 

 

$

63,195

 

 

$

15,538

 

 

$

414,506

 

Special Mention

 

 

4,013

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,284

 

 

 

1,428

 

 

 

—

 

 

 

6,725

 

Substandard

 

 

1,017

 

 

 

—

 

 

 

87

 

 

 

4,103

 

 

 

4,115

 

 

 

4,162

 

 

 

—

 

 

 

13,484

 

Total Non-Farm non-residential owner-occupied

 

$

105,786

 

 

$

64,629

 

 

$

23,745

 

 

$

68,921

 

 

$

87,311

 

 

$

68,785

 

 

$

15,538

 

 

$

434,715

 

Non-farm non-residential
   non-owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

220,305

 

 

$

74,690

 

 

$

63,540

 

 

$

153,972

 

 

$

122,038

 

 

$

30,599

 

 

$

24,237

 

 

$

689,381

 

Special Mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,976

 

 

 

—

 

 

 

2,643

 

 

 

—

 

 

 

4,619

 

Substandard

 

 

9,856

 

 

 

100

 

 

 

—

 

 

 

—

 

 

 

6,161

 

 

 

284

 

 

 

—

 

 

 

16,401

 

Total Non-Farm non-residential non owner-occupied

 

$

230,161

 

 

$

74,790

 

 

$

63,540

 

 

$

155,948

 

 

$

128,199

 

 

$

33,526

 

 

$

24,237

 

 

$

710,401

 

Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

65,081

 

 

$

39,057

 

 

$

72,387

 

 

$

74,976

 

 

$

56,620

 

 

$

18,219

 

 

$

6,715

 

 

$

333,055

 

Substandard

 

 

73

 

 

 

82

 

 

 

—

 

 

 

209

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

364

 

Total Residential

 

$

65,154

 

 

$

39,139

 

 

$

72,387

 

 

$

75,185

 

 

$

56,620

 

 

$

18,219

 

 

$

6,715

 

 

$

333,419

 

Construction,
   development & other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

116,531

 

 

$

79,226

 

 

$

73,153

 

 

$

59,248

 

 

$

3,624

 

 

$

3,724

 

 

$

484,432

 

 

$

819,938

 

Substandard

 

 

3,415

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,415

 

Total Construction, development & other

 

$

119,946

 

 

$

79,226

 

 

$

73,153

 

 

$

59,248

 

 

$

3,624

 

 

$

3,724

 

 

$

484,432

 

 

$

823,353

 

Farmland

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

2,653

 

 

$

3,172

 

 

$

7,206

 

 

$

6,720

 

 

$

210

 

 

$

671

 

 

$

5,087

 

 

$

25,719

 

Special Mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

766

 

 

 

—

 

 

 

—

 

 

 

766

 

Total Farmland

 

$

2,653

 

 

$

3,172

 

 

$

7,206

 

 

$

6,720

 

 

$

976

 

 

$

671

 

 

$

5,087

 

 

$

26,485

 

Commercial & industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

391,690

 

 

$

120,852

 

 

$

66,291

 

 

$

64,184

 

 

$

30,736

 

 

$

9,585

 

 

$

1,180,523

 

 

$

1,863,861

 

Special Mention

 

 

914

 

 

 

870

 

 

 

8,526

 

 

 

252

 

 

 

—

 

 

 

97

 

 

 

24,177

 

 

 

34,836

 

Substandard

 

 

70

 

 

 

1,236

 

 

 

2,951

 

 

 

742

 

 

 

249

 

 

 

387

 

 

 

2,284

 

 

 

7,919

 

Total Commercial & industrial

 

$

392,674

 

 

$

122,958

 

 

$

77,768

 

 

$

65,178

 

 

$

30,985

 

 

$

10,069

 

 

$

1,206,984

 

 

$

1,906,616

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

804

 

 

$

102

 

 

$

354

 

 

$

177

 

 

$

10

 

 

$

95

 

 

$

—

 

 

$

1,542

 

Special Mention

 

 

—

 

 

 

—

 

 

 

34

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

34

 

Total Consumer

 

$

804

 

 

$

102

 

 

$

388

 

 

$

177

 

 

$

10

 

 

$

95

 

 

$

—

 

 

$

1,576

 

Municipal and other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

36,101

 

 

$

73

 

 

$

19,347

 

 

$

3,410

 

 

$

560

 

 

$

19

 

 

$

98,676

 

 

$

158,186

 

Total Municipal and other

 

$

36,101

 

 

$

73

 

 

$

19,347

 

 

$

3,410

 

 

$

560

 

 

$

19

 

 

$

98,676

 

 

$

158,186

 

Total Loans

 

$

953,279

 

 

$

384,089

 

 

$

337,534

 

 

$

434,787

 

 

$

308,285

 

 

$

135,108

 

 

$

1,841,669

 

 

$

4,394,751

 

 

The following tables summarize the Company's gross charge-offs by origination year and loan class for the six months ended June 30, 2026 and the year ended December 31, 2025.

 

 

 

Gross Charge-offs by Origination Year

 

 

Revolving Loans Amortized

 

 

 

 

(Dollars in thousands)

 

2026

 

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

Prior Years

 

 

Cost Basis

 

 

Total

 

June 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & industrial

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

(225

)

 

$

(40

)

 

$

(6

)

 

$

(271

)

Municipal and other

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(7

)

 

 

(26

)

 

 

(17

)

 

 

—

 

 

 

(50

)

Total Charge-Offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

(7

)

 

$

(251

)

 

$

(57

)

 

$

(6

)

 

$

(321

)

 

 

 

Gross Charge-offs by Origination Year

 

 

Revolving Loans Amortized

 

 

 

 

(Dollars in thousands)

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

Prior Years

 

 

Cost Basis

 

 

Total

 

December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & industrial

 

$

—

 

 

$

(72

)

 

$

(43

)

 

$

(1,785

)

 

$

—

 

 

$

(385

)

 

$

(1,819

)

 

$

(4,104

)

Municipal and other

 

 

—

 

 

 

—

 

 

 

(4

)

 

 

(30

)

 

 

—

 

 

 

(10

)

 

 

—

 

 

 

(44

)

Total Charge-Offs

 

$

—

 

 

$

(72

)

 

$

(47

)

 

$

(1,815

)

 

$

—

 

 

$

(395

)

 

$

(1,819

)

 

$

(4,148

)
Schedule of Allowance for Credit Losses

The following tables detail the activity in the allowance for credit losses by portfolio segment for the six months ended June 30, 2026 and 2025:

(Dollars in thousands)

 

Beginning
Balance

 

 

Initial
Allowance on Acquired Loans

 

 

Provision for Credit Losses on Loans

 

 

Charge-offs

 

 

Recoveries

 

 

Ending
Balance

 

Six Months Ended June 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential
   owner occupied

 

$

2,337

 

 

$

794

 

 

$

138

 

 

$

—

 

 

$

—

 

 

$

3,269

 

Non-farm non-residential
   non-owner occupied

 

 

4,843

 

 

 

1,868

 

 

 

(601

)

 

 

—

 

 

 

—

 

 

 

6,110

 

Residential

 

 

2,008

 

 

 

1,489

 

 

 

(187

)

 

 

—

 

 

 

—

 

 

 

3,310

 

Construction, development & other

 

 

6,955

 

 

 

487

 

 

 

(70

)

 

 

—

 

 

 

—

 

 

 

7,372

 

Farmland

 

 

116

 

 

 

21

 

 

 

34

 

 

 

—

 

 

 

—

 

 

 

171

 

Commercial & industrial

 

 

26,673

 

 

 

2,121

 

 

 

3,486

 

 

 

(271

)

 

 

472

 

 

 

32,481

 

Consumer

 

 

6

 

 

 

5

 

 

 

(2

)

 

 

—

 

 

 

—

 

 

 

9

 

Municipal and other

 

 

1,011

 

 

 

1

 

 

 

(97

)

 

 

(50

)

 

 

4

 

 

 

869

 

 

 

$

43,949

 

 

$

6,786

 

 

$

2,701

 

 

$

(321

)

 

$

476

 

 

$

53,591

 

 

 

(Dollars in thousands)

 

Beginning
Balance

 

 

Provision for Credit Losses on Loans

 

 

Charge-offs

 

 

Recoveries

 

 

Ending
Balance

 

Six Months Ended June 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential
   owner occupied

 

$

3,015

 

 

$

(202

)

 

$

—

 

 

$

—

 

 

$

2,813

 

Non-farm non-residential
   non-owner occupied

 

 

4,460

 

 

 

(787

)

 

 

—

 

 

 

350

 

 

 

4,023

 

Residential

 

 

2,014

 

 

 

(96

)

 

 

—

 

 

 

—

 

 

 

1,918

 

Construction, development & other

 

 

14,728

 

 

 

(2,991

)

 

 

—

 

 

 

—

 

 

 

11,737

 

Farmland

 

 

187

 

 

 

(28

)

 

 

—

 

 

 

—

 

 

 

159

 

Commercial & industrial

 

 

15,370

 

 

 

6,386

 

 

 

(3,213

)

 

 

89

 

 

 

18,632

 

Consumer

 

 

10

 

 

 

(5

)

 

 

—

 

 

 

—

 

 

 

5

 

Municipal and other

 

 

520

 

 

 

228

 

 

 

—

 

 

 

—

 

 

 

748

 

 

 

$

40,304

 

 

$

2,505

 

 

$

(3,213

)

 

$

439

 

 

$

40,035

 

Management believes the allowance for credit losses is adequate to cover expected credit losses on loans at June 30, 2026 and 2025.

The following tables detail the activity in the allowance for credit losses by portfolio segment for the three months ended June 30, 2026 and 2025:

(Dollars in thousands)

 

Beginning
Balance

 

 

Initial
 Allowance on
 Acquired Loans

 

 

Provision for Credit Losses on Loans

 

 

Charge-offs

 

 

Recoveries

 

 

Ending
Balance

 

Three Months Ended June 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential
   owner occupied

 

$

3,586

 

 

$

—

 

 

$

(317

)

 

$

—

 

 

$

—

 

 

$

3,269

 

Non-farm non-residential
   non-owner occupied

 

 

6,249

 

 

 

—

 

 

 

(139

)

 

 

—

 

 

 

—

 

 

 

6,110

 

Residential

 

 

3,623

 

 

 

—

 

 

 

(313

)

 

 

—

 

 

 

—

 

 

 

3,310

 

Construction, development & other

 

 

7,061

 

 

 

—

 

 

 

311

 

 

 

—

 

 

 

—

 

 

 

7,372

 

Farmland

 

 

169

 

 

 

—

 

 

 

2

 

 

 

—

 

 

 

—

 

 

 

171

 

Commercial & industrial

 

 

29,965

 

 

 

—

 

 

 

2,346

 

 

 

(271

)

 

 

441

 

 

 

32,481

 

Consumer

 

 

12

 

 

 

—

 

 

 

(3

)

 

 

—

 

 

 

—

 

 

 

9

 

Municipal and other

 

 

790

 

 

 

—

 

 

 

99

 

 

 

(24

)

 

 

4

 

 

 

869

 

 

 

$

51,455

 

 

$

—

 

 

$

1,986

 

 

$

(295

)

 

$

445

 

 

$

53,591

 

 

 

(Dollars in thousands)

 

Beginning
Balance

 

 

Provision for Credit Losses on Loans

 

 

Charge-offs

 

 

Recoveries

 

 

Ending
Balance

 

Three Months Ended June 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential
   owner occupied

 

$

2,815

 

 

$

(2

)

 

$

—

 

 

$

—

 

 

$

2,813

 

Non-farm non-residential
   non-owner occupied

 

 

4,123

 

 

 

(100

)

 

 

—

 

 

 

—

 

 

 

4,023

 

Residential

 

 

2,021

 

 

 

(103

)

 

 

—

 

 

 

—

 

 

 

1,918

 

Construction, development & other

 

 

14,491

 

 

 

(2,754

)

 

 

—

 

 

 

—

 

 

 

11,737

 

Farmland

 

 

178

 

 

 

(19

)

 

 

—

 

 

 

—

 

 

 

159

 

Commercial & industrial

 

 

16,419

 

 

 

4,589

 

 

 

(2,403

)

 

 

27

 

 

 

18,632

 

Consumer

 

 

7

 

 

 

(2

)

 

 

—

 

 

 

—

 

 

 

5

 

Municipal and other

 

 

402

 

 

 

346

 

 

 

—

 

 

 

—

 

 

 

748

 

 

 

$

40,456

 

 

$

1,955

 

 

$

(2,403

)

 

$

27

 

 

$

40,035

 
Schedule of Allowance for Credit Losses on Amortized Cost Basis of Collateral Dependent With and Without Specific Reserves Assessed Individually for Credit Losses

The following tables present the amortized cost basis of collateral dependent loans and the collateral type which have been assessed individually for credit losses:

(Dollars in thousands)

 

Real Estate

 

 

Business Assets

 

 

Other

 

 

Total

 

June 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential owner occupied

 

$

3,320

 

 

$

—

 

 

$

—

 

 

$

3,320

 

Non-farm non-residential non-owner occupied

 

 

8,546

 

 

 

—

 

 

 

—

 

 

 

8,546

 

Residential

 

 

198

 

 

 

—

 

 

 

—

 

 

 

198

 

Construction, development & other

 

 

2,812

 

 

 

—

 

 

 

—

 

 

 

2,812

 

Commercial & industrial

 

 

—

 

 

 

10,503

 

 

 

1,528

 

 

 

12,031

 

 

 

$

14,876

 

 

$

10,503

 

 

$

1,528

 

 

$

26,907

 

 

December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential owner occupied

 

$

1,235

 

 

$

—

 

 

$

—

 

 

$

1,235

 

Non-farm non-residential non-owner occupied

 

 

99

 

 

 

—

 

 

 

—

 

 

 

99

 

Residential

 

 

387

 

 

 

—

 

 

 

—

 

 

 

387

 

Commercial & industrial

 

 

—

 

 

 

5,893

 

 

 

2,153

 

 

 

8,046

 

 

 

$

1,721

 

 

$

5,893

 

 

$

2,153

 

 

$

9,767

 
Summary of Acquisitions of Loans at Fair Value

In connection with the February 1, 2026 acquisition of loans from Keystone Bancshares, Inc. and its subsidiary, Keystone Bank, SSB, the PCD loan portfolio was accounted for at fair value as follows:

(Dollars in thousands)

 

 

 

Contractual required payments

 

$

8,235

 

Non-accretable difference (expected loss)

 

 

1,029

 

Cash flows expected to be collected at acquisition

 

 

7,206

 

Accretable yield

 

 

708

 

Basis in acquired Keystone Bank, SSB PCD loans

 

$

6,498

 
Schedule of Gross Contractual Amounts Receivable Balances

The following table presents the gross contractual amounts receivable balances, by portfolio segment, and the carrying amount of PCD loans:

(Dollars in thousands)

 

June 30, 2026

 

 

Real estate loans:

 

 

 

 

Non-farm non-residential owner occupied

 

$

2,980

 

 

Non-farm non-residential non-owner occupied

 

 

2,989

 

 

Commercial & industrial

 

 

2,023

 

 

Total outstanding balances

 

$

7,992

 

 

Carrying amount

 

$

7,305

 

 
Summary of Accretable Yield or Income Expected to be Collected

Accretable yield, or income expected to be collected on PCD loans was as follows:

(Dollars in thousands)

 

June 30, 2026

 

 

Balance at beginning of year

 

$

—

 

 

New loans acquired from Keystone Bank, SSB acquisition

 

 

708

 

 

Accretion of income

 

 

(21

)

 

Balance at end of period

 

$

687