v3.26.1
Loans
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
Loans
Note 4 — Loans
Loans consist of the following:
(Dollars in thousands)June 30, 2026December 31, 2025
Loans held for sale$1,146 $1,032 
LHFI:
Loans secured by real estate:
Commercial real estate(1)
$2,631,704 $2,523,905 
Construction/land/land development698,610 611,220 
Single-family residential real estate1,425,285 1,444,611 
Multifamily residential real estate568,445 553,149 
Total real estate5,324,044 5,132,885 
Commercial and industrial2,141,623 1,989,218 
Mortgage warehouse lines of credit589,706 528,781 
Consumer18,204 20,033 
Total LHFI(2)
8,073,577 7,670,917 
Less: Allowance for loan credit losses (“ALCL”)
98,188 96,782 
LHFI, net$7,975,389 $7,574,135 
____________________________
(1)Includes owner-occupied commercial real estate of $1.05 billion and $1.00 billion at June 30, 2026, and December 31, 2025 respectively.
(2)Includes unamortized purchase accounting adjustment and net deferred loan fees of $10.9 million and $10.6 million at June 30, 2026, and December 31, 2025, respectively.
Credit quality indicators. As part of the Company’s commitment to managing the credit quality of its loan portfolio, management annually and periodically updates and evaluates certain credit quality indicators, which include but are not limited to (i) weighted-average risk rating of the loan portfolio, (ii) net charge-offs, (iii) level of non-performing loans, (iv) level of classified loans (defined as substandard, doubtful and loss), and (v) the general economic conditions particularly in the cities and states in which the Company operates. The Company maintains an internal risk rating system where ratings are assigned to individual loans based on assessed risk. Loan risk ratings are the primary indicator of credit quality for the loan portfolio and are continually evaluated to ensure they are appropriate based on currently available information.
The following is a summary description of the Company’s internal risk ratings:
• Pass (1-6)Loans within this risk rating are further categorized as follows:
Minimal risk (1)Well-collateralized by cash equivalent instruments held by the Bank.
Moderate risk (2)Borrowers with excellent asset quality and liquidity. Borrowers’ capitalization and liquidity exceed industry norms. Borrowers in this category have significant levels of liquid assets and have a low level of leverage.
Better than average risk (3)Borrowers with strong financial strength and excellent liquidity that consistently demonstrate strong operating performance. Borrowers in this category generally have a sizable net worth that can be converted into liquid assets within 12 months.
Average risk (4)Borrowers with sound credit quality and financial performance, including liquidity. Borrowers are supported by sufficient cash flow coverage generated through operations across the full business cycle.
Marginally acceptable risk (5)Loans generally meet minimum requirements for an acceptable loan in accordance with lending policy but possess one or more attributes that cause the overall risk profile to be higher than the majority of newly approved loans.
Watch (6)A passing loan with one or more factors that identify a potential weakness in the overall ability of the borrower to repay the loan. These weaknesses are generally mitigated by other factors that reduce the risk of delinquency or loss.
• Special Mention (7)This grade is intended to be temporary and includes borrowers whose credit quality has deteriorated and is at risk of further decline.
• Substandard (8)This grade includes “Substandard” loans under regulatory guidelines. Substandard loans exhibit a well-defined weakness that jeopardizes debt repayment in accordance with contractual agreements, even though the loan may be performing. These obligations are characterized by the distinct possibility that a loss may be incurred if these weaknesses are not corrected, and repayment may be dependent upon collateral liquidation or secondary source of repayment.
• Doubtful (9)This grade includes “Doubtful” loans under regulatory guidelines. Such loans are placed on nonaccrual status and repayment may be dependent upon collateral with no readily determinable valuation or valuations that are highly subjective in nature. Repayment for these loans is considered improbable based on currently existing facts and circumstances.
• Loss (0)This grade includes “Loss” loans under regulatory guidelines. Loss loans are charged-off or written down when repayment is not expected.
In connection with the review of the loan portfolio, the Company considers risk elements attributable to particular loan types or categories in assessing the quality of individual loans. The list of loans to be reviewed for possible individual evaluation consists of unsecured loans over 90 days past due; loans greater than $50,000 that are either modified loans to borrowers experiencing financial difficulty or collateralized loans 180 days or more past due; as well as loans greater than $100,000 in which the borrower has either filed bankruptcy, is rated classified or non-accrual, and/or is a consumer loan with a FICO score under 625. Loans $50,000 or less will be evaluated collectively in designated pools unless a loss exposure has been identified. Some additional risk elements considered by loan type include:
•for commercial real estate loans, the debt service coverage ratio, operating results of the owner in the case of owner-occupied properties, the loan to value ratio, the age and condition of the collateral and the volatility of income, property value and future operating results typical of properties of that type;
•for construction, land and land development loans, the perceived feasibility of the project, including the ability to sell developed lots or improvements constructed for resale or the ability to lease property constructed for lease, the quality and nature of contracts for presale or prelease, if any, experience and ability of the developer, and loan to value ratio;
•for residential mortgage loans, the borrower’s ability to repay the loan, including a consideration of the debt to income ratio and employment and income stability, the loan-to-value ratio, and the age, condition and marketability of the collateral;
•for commercial and industrial loans, the debt service coverage ratio (income from the business in excess of operating expenses compared to loan repayment requirements), the operating results of the commercial, industrial or professional enterprise, the borrower’s business, professional and financial ability and expertise, the specific risks and volatility of income and operating results typical for businesses in that category and the value, nature and marketability of collateral; and
•for mortgage warehouse loans, the borrower’s adherence to agency or investor underwriting guidelines, while the risk associated with the underlying consumer mortgage loan repayments, similar to other consumer loans, depends on the borrower’s financial stability and are more likely than commercial loans to be adversely affected by divorce, job loss, illness and other personal hardships.
Purchased loans that have experienced more than insignificant credit deterioration since origination at the time of acquisition are purchase credit deteriorated (“PCD”) loans. An allowance for credit losses is determined using the same methodology as other individually evaluated loans. The Company held approximately $5.1 million and $5.4 million of unpaid principal balance PCD loans at June 30, 2026 and December 31, 2025, respectively.
Please see Note 1 — Significant Accounting Policies included in these Notes to Consolidated Financial Statements for a description of our accounting policies related to purchased financial assets with credit deterioration.
The following table reflects recorded investments in loans by credit quality indicator and origination year at June 30, 2026, and gross charge-offs for the six months ended June 30, 2026, excluding loans held for sale. Loans acquired are shown in the table by origination year, not merger date. The Company had an immaterial amount of revolving loans converted to term loans at June 30, 2026.
Term Loans
Amortized Cost Basis by Origination Year
(Dollars in thousands)20262025202420232022PriorRevolving Loans Amortized Cost BasisTotal
Commercial real estate:
Pass$390,101 $560,810 $143,864 $288,197 $660,546 $512,495 $49,466 $2,605,479 
Classified46 681 8,814 7,159 3,722 5,559 244 26,225 
Total commercial real estate loans$390,147 $561,491 $152,678 $295,356 $664,268 $518,054 $49,710 $2,631,704 
Year-to-date gross charge-offs$— $— $— $438 $200 $586 $— $1,224 
Construction/land/land development:
Pass$109,624 $296,353 $77,102 $65,489 $37,947 $47,384 $35,374 $669,273 
Classified3,790 834 2,849 3,946 11,000 4,606 2,312 29,337 
Total construction/land/land development loans$113,414 $297,187 $79,951 $69,435 $48,947 $51,990 $37,686 $698,610 
Single-family residential real estate:
Pass$112,766 $191,899 $66,194 $181,609 $345,370 $359,931 $124,615 $1,382,384 
Classified1,384 1,765 1,372 9,422 22,100 6,696 162 42,901 
Total single-family residential real estate loans$114,150 $193,664 $67,566 $191,031 $367,470 $366,627 $124,777 $1,425,285 
Year-to-date gross charge-offs$— $61 $142 $71 $35 $— $— $309 
Multi-family residential real estate:
Pass$109,472 $148,344 $17,509 $58,236 $159,407 $73,821 $1,656 $568,445 
Total multi-family residential real estate loans$109,472 $148,344 $17,509 $58,236 $159,407 $73,821 $1,656 $568,445 
Commercial and industrial:
Pass$286,496 $341,821 $122,098 $128,682 $70,962 $63,829 $1,082,157 $2,096,045 
Special mention— — — — — — 458 458 
Classified4,328 10,215 4,001 2,841 7,071 1,268 15,396 45,120 
Total commercial and industrial loans$290,824 $352,036 $126,099 $131,523 $78,033 $65,097 $1,098,011 $2,141,623 
Year-to-date gross charge-offs$80 $55 $467 $16 $— $197 $3,905 $4,720 
Mortgage Warehouse Lines of Credit:
Pass$— $— $— $— $— $— $589,706 $589,706 
Consumer:
Pass$3,829 $5,552 $2,544 $1,039 $220 $48 $4,904 $18,136 
Classified— 15 27 14 10 — 2 68 
Total consumer loans$3,829 $5,567 $2,571 $1,053 $230 $48 $4,906 $18,204 
Year-to-date gross charge-offs$— $46 $107 $4 $2 $— $47 $206 
    
The following table reflects recorded investments in loans by credit quality indicator and origination year at December 31, 2025, and gross charge-offs for the year ended December 31, 2025, excluding loans held for sale. Loans
acquired are shown in the table by origination year, not merger date. The Company had an immaterial amount of revolving loans converted to term loans at December 31, 2025.
Term Loans
Amortized Cost Basis by Origination Year
(Dollars in thousands)20252024202320222021PriorRevolving Loans Amortized Cost BasisTotal
Commercial real estate:
Pass$566,147 $211,520 $302,448 $718,350 $323,489 $310,901 $61,123 $2,493,978 
Special mention— — — 6,225 — 1,602 — 7,827 
Classified529 8,146 4,887 1,664 2,136 4,638 100 22,100 
Total commercial real estate loans$566,676 $219,666 $307,335 $726,239 $325,625 $317,141 $61,223 $2,523,905 
Year-to-date gross charge-offs$— $— $10 $— $34 $427 $257 $728 
Construction/land/land development:
Pass$235,134 $84,044 $88,060 $80,150 $57,982 $5,828 $34,246 $585,444 
Classified124 723 3,996 11,242 2,727 826 6,138 25,776 
Total construction/land/land development loans$235,258 $84,767 $92,056 $91,392 $60,709 $6,654 $40,384 $611,220 
Single-family residential real estate:
Pass$207,545 $95,844 $207,189 $355,335 $191,161 $219,513 $114,688 $1,391,275 
Classified4,476 836 14,060 24,756 4,305 4,857 46 53,336 
Total residential real estate loans$212,021 $96,680 $221,249 $380,091 $195,466 $224,370 $114,734 $1,444,611 
Year-to-date gross charge-offs$— $36 $86 $267 $— $— $100 $489 
Multifamily residential real estate:
Pass$188,102 $17,847 $58,625 $200,912 $59,824 $26,320 $1,276 $552,906 
Classified243 — — — — — — 243 
Total residential real estate loans$188,345 $17,847 $58,625 $200,912 $59,824 $26,320 $1,276 $553,149 
Commercial and industrial:
Pass$425,600 $151,628 $158,442 $81,585 $54,154 $29,762 $1,039,561 $1,940,732 
Special mention— — — 1,434 — — 1,063 2,497 
Classified7,115 4,267 4,219 7,121 301 529 22,437 45,989 
Total commercial and industrial loans$432,715 $155,895 $162,661 $90,140 $54,455 $30,291 $1,063,061 $1,989,218 
Year-to-date gross charge-offs$131 $2,958 $553 $4,206 $757 $1,746 $33,340 $43,691 
Mortgage Warehouse Lines of Credit:
Pass$— $— $— $— $— $— $528,781 $528,781 
Consumer:
Pass$8,621 $3,625 $1,587 $348 $96 $25 $5,547 $19,849 
Classified— 134 19 16 — — 15 184 
Total consumer loans$8,621 $3,759 $1,606 $364 $96 $25 $5,562 $20,033 
Year-to-date gross charge-offs$14 $23 $24 $2 $— $20 $91 $174 
The following tables present the Company’s loan portfolio aging analysis at the dates indicated:
June 30, 2026
(Dollars in thousands)30-59 Days Past Due60-89 Days Past DueLoans Past Due 90 Days or MoreTotal Past DueCurrent LoansTotal Loans Receivable30-89 Days Past Due and Still AccruingAccruing Loans 90 or More Days Past Due
Loans secured by real estate:
Commercial real estate
$4,315 $263 $2,865 $7,443 $2,624,261 $2,631,704 $17 $— 
Construction/land/land development
593 — 10,210 10,803 687,807 698,610 593 — 
Single-family residential real estate831 4,809 18,922 24,562 1,400,723 1,425,285 3,253 — 
Multifamily residential real estate— — — — 568,445 568,445 — — 
Total real estate5,739 5,072 31,997 42,808 5,281,236 5,324,044 3,863 — 
Commercial and industrial1,081 477 9,131 10,689 2,130,934 2,141,623 1,034 — 
Mortgage warehouse lines of credit
— — — — 589,706 589,706 — — 
Consumer323 28 15 366 17,838 18,204 306 — 
Total LHFI$7,143 $5,577 $41,143 $53,863 $8,019,714 $8,073,577 $5,203 $— 
December 31, 2025
(Dollars in thousands)30-59 Days Past Due60-89 Days Past DueLoans Past Due 90 Days or MoreTotal Past DueCurrent LoansTotal Loans Receivable30-89 Days Past Due and Still AccruingAccruing Loans 90 or More Days Past Due
Loans secured by real estate:
Commercial real estate$— $4,203 $9,884 $14,087 $2,509,818 $2,523,905 $4,203 $— 
Construction/land/land development
137 45 14,484 14,666 596,554 611,220 108 — 
Single-family residential real estate9,912 3,333 22,368 35,613 1,408,998 1,444,611 9,114 — 
Multifamily residential real estate— — — — 553,149 553,149 — — 
Total real estate10,049 7,581 46,736 64,366 5,068,519 5,132,885 13,425 — 
Commercial and industrial895 254 7,792 8,941 1,980,277 1,989,218 1,149 — 
Mortgage warehouse lines of credit— — — — 528,781 528,781 — — 
Consumer127 63 104 294 19,739 20,033 190 — 
Total LHFI$11,071 $7,898 $54,632 $73,601 $7,597,316 $7,670,917 $14,764 $— 
The following tables detail activity in the ALCL by portfolio segment. Management has made the accounting policy election to exclude accrued interest receivable on loans from the estimate of loan credit losses. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. Accrued interest on loans receivable of $29.3 million and $28.9 million at June 30, 2026, and December 31, 2025, respectively, was included in accrued interest receivable and other assets on the face of the consolidated balance sheets.
Three Months Ended June 30, 2026
Commercial Real EstateConstruction/ Land/ Land DevelopmentSingle-Family Residential Real EstateMultifamily Residential Real EstateCommercial and IndustrialMortgage Warehouse Lines of CreditConsumerTotal
(Dollars in thousands)
Beginning balance$19,388 $6,996 $9,793 $6,811 $54,427 $998 $602 $99,015 
Charge-offs449 — 277 — 1,716 — 54 2,496 
Recoveries1 — — — 1,935 — 106 2,042 
Provision(1)
138 (431)474 (150)(412)69 (61)(373)
Ending balance$19,078 $6,565 $9,990 $6,661 $54,234 $1,067 $593 $98,188 
Average balance$2,563,643 $675,151 $1,428,511 $572,052 $2,212,814 $483,340 $19,158 $7,954,669 
Net charge-offs (recoveries) to loan average balance (annualized)0.07 %— %0.08 %— %(0.04)%— %(1.09)%0.02 %
____________________________
(1)The $65,000 provision for credit losses on the consolidated statements of income includes a $373,000 net benefit provision for loan credit losses, a $440,000 provision for off-balance sheet commitments and $2,000 net benefit provision for held to maturity securities credit losses, for the three months ended June 30, 2026.

Three Months Ended June 30, 2025
Commercial Real EstateConstruction/ Land/ Land DevelopmentSingle-Family Residential Real EstateMultifamily Residential Real EstateCommercial and IndustrialMortgage Warehouse Lines of CreditConsumerTotal
(Dollars in thousands)
Beginning balance$16,185 $6,836 $8,949 $4,078 $54,762 $422 $779 $92,011 
Charge-offs471 — 119 — 2,995 — 115 3,700 
Recoveries— — 7 — 1,390 — 3 1,400 
Provision(1)
1,071 (512)222 502 1,018 358 56 2,715 
Ending balance$16,785 $6,324 $9,059 $4,580 $54,175 $780 $723 $92,426 
Average balance$2,407,632 $739,601 $1,462,025 $493,397 $2,068,175 $480,587 $21,851 $7,673,268 
Net charge-offs to loan average balance (annualized)0.08 %— %0.03 %— %0.31 %— %2.06 %0.12 %
____________________________
(1)The $2.9 million provision for credit losses on the consolidated statements of income includes a $2.7 million provision for loan credit losses, a $149,000 provision expense for off-balance sheet commitments and a $2,000 net benefit provision for held to maturity securities credit losses for the three months ended June 30, 2025.
Six Months Ended June 30, 2026
Commercial Real EstateConstruction/ Land/ Land DevelopmentSingle-Family Residential Real EstateMultifamily Residential Real EstateCommercial and IndustrialMortgage Warehouse Lines of CreditConsumerTotal
(Dollars in thousands)
Beginning balance$18,929 $7,219 $9,525 $4,963 $54,496 $913 $737 $96,782 
Charge-offs1,224 — 309 — 4,720 — 206 6,459 
Recoveries1 — 2 — 3,117 — 108 3,228 
Provision(1)
1,372 (654)772 1,698 1,341 154 (46)4,637 
Ending balance$19,078 $6,565 $9,990 $6,661 $54,234 $1,067 $593 $98,188 
Average balance$2,535,076 $651,871 $1,438,587 $560,826 $2,145,200 $444,920 $19,489 $7,795,969 
Net charge-offs to loan average balance (annualized)
0.10 %— %0.04 %— %0.15 %— %1.01 %0.08 %
_________________________
(1)The $5.0 million provision for credit losses on the consolidated statements of income includes a $4.6 million provision for loan losses, a $395,000 provision expense for off-balance sheet commitments and a $3,000 net benefit provision for held to maturity securities credit losses for the six months ended June 30, 2026.

Six Months Ended June 30, 2025
Commercial Real EstateConstruction/ Land/ Land DevelopmentSingle-Family Residential Real EstateMultifamily Residential Real EstateCommercial and IndustrialMortgage Warehouse Lines of CreditConsumerTotal
(Dollars in thousands)
Beginning balance$16,546 $7,398 $8,623 $3,831 $53,449 $501 $712 $91,060 
Charge-offs728 — 119 — 7,556 — 145 8,548 
Recoveries13 — 10 43 3,432 — 22 3,520 
Provision(1)
954 (1,074)545 706 4,850 279 134 6,394 
Ending balance$16,785 $6,324 $9,059 $4,580 $54,175 $780 $723 $92,426 
Average balance$2,427,754 $780,450 $1,450,386 $482,412 $2,036,281 $385,582 $22,278 $7,585,143 
Net charge-offs (recoveries) to loan average balance (annualized)
0.06 %— %0.02 %(0.02)%0.41 %— %1.11 %0.13 %
____________________________
(1)The $6.3 million provision for credit losses on the consolidated statements of income includes a $6.4 million provision for loan credit losses, a $84,000 and $3,000 net benefit provision for off-balance sheet commitments and held to maturity securities credit losses, respectively, for the six months ended June 30, 2025.
The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related ALCL allocated to these loans:
June 30, 2026
(Dollars in thousands)Commercial Real EstateConstruction/ Land/ Land DevelopmentSingle-Family Residential Real EstateCommercial and IndustrialTotal
Real Estate $3,322 $206 $12,427 $— $15,955 
Accounts Receivable — — — 189 189 
Total$3,322 $206 $12,427 $189 $16,144 
ALCL Allocation$— $— $448 $— $448 
December 31, 2025
(Dollars in thousands)Commercial Real EstateConstruction/ Land/ Land DevelopmentSingle-Family Residential Real EstateCommercial and IndustrialTotal
Real Estate $4,409 $206 $14,803 $— $19,418 
Accounts Receivable— — — 189 189 
Equipment— — — 119 119 
Other— — — 206 206 
Total$4,409 $206 $14,803 $514 $19,932 
ALCL Allocation$— $— $61 $— $61 
Collateral-dependent loans consist primarily of residential real estate, commercial real estate and commercial and industrial loans. These loans are individually evaluated when foreclosure is probable or when the repayment of the loan is expected to be provided substantially through the operation or sale of the underlying collateral. In the case of commercial and industrial loans secured by equipment, the fair value of the collateral is estimated by third-party valuation experts. Loan balances are charged down to the underlying collateral value when they are deemed uncollectible. Note that the Company did not elect to use the collateral maintenance agreement practical expedient available under the current expected credit loss (“CECL”) guidance.
Nonaccrual LHFI was as follows:
Nonaccrual With No
Allowance for Credit Loss		Total Nonaccrual
(Dollars in thousands)
Loans secured by real estate:
June 30, 2026December 31, 2025June 30, 2026December 31, 2025
Commercial real estate$6,461 $11,167 $15,479 $13,212 
Construction/land/land development
12,519 8,139 16,365 16,388 
Single-family residential real estate29,388 33,418 35,595 39,480 
Total real estate48,368 52,724 67,439 69,080 
Commercial and industrial
1,390 870 11,015 11,919 
Consumer— — 68 185 
Total nonaccrual loans$49,758 $53,594 $78,522 $81,184 
All interest formerly accrued but not received for loans placed on nonaccrual status is reversed from interest income. Subsequent receipts on nonaccrual loans are recorded as a reduction of principal, and interest income is recorded only after principal recovery is reasonably assured. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.
No interest income was recorded on nonaccrual loans while they were considered nonaccrual during the six months ended June 30, 2026 and 2025.
The tables below summarize modifications made to borrowers experiencing financial difficulty by loan and modification type during the three and six months ended June 30, 2026 and 2025:
Three Months Ended June 30, 2026
Term ExtensionOther-Than-Insignificant Payment Delay
(Dollars in thousands)Amortized Cost% of LoansAmortized Cost% of Loans
Loans secured by real estate:
Commercial real estate$1,168 0.04 %$46 — %
Construction/land/land development4,733 0.68 42 0.01 
Single-family residential real estate1,316 0.09 278 0.02 
Total real estate7,217 0.14 366 0.01 
Commercial and industrial16,879 0.79 — — 
Consumer9 0.05 50 0.27 
Total$24,105 0.30 $416 0.01 
Three Months Ended June 30, 2025
Term ExtensionOther-Than-Insignificant Payment Delay
(Dollars in thousands)Amortized Cost% of LoansAmortized Cost% of Loans
Loans secured by real estate:
Commercial real estate$141 0.01 %$— — %
Construction/land/land development7 — — — 
Single-family residential real estate253 0.02 34 — 
Total real estate401 0.01 34 — 
Commercial and industrial14,002 0.70 27 — 
Total$14,403 0.19 $61 — 

Six Months Ended June 30, 2026
Term ExtensionOther-Than-Insignificant Payment Delay
(Dollars in thousands)Amortized Cost% of LoansAmortized Cost% of Loans
Loans secured by real estate:
Commercial real estate$4,069 0.15 %$5,852 0.22 %
Construction/land/land development8,829 1.26 42 0.01 
Single-family residential real estate1,797 0.13 1,413 0.10 
Total real estate14,695 0.28 7,307 0.14 
Commercial and industrial18,831 0.88 30 — 
Consumer9 0.05 51 0.28 
Total$33,535 0.42 $7,388 0.09 
Six Months Ended June 30, 2025
Term ExtensionOther-Than-Insignificant Payment Delay
(Dollars in thousands)Amortized Cost% of LoansAmortized Cost% of Loans
Loans secured by real estate:
Commercial real estate$861 0.04 %$— — %
Construction/land/land development132 0.02 — — 
Single-family residential real estate665 0.05 34 — 
Total real estate1,658 0.03 34 — 
Commercial and industrial29,360 1.46 27 — 
Total$31,018 0.40 $61 — 
The following tables describe the financial effects of the modifications made to borrowers experiencing financial difficulty during the three and six months ended June 30, 2026 and 2025:
Three Months Ended June 30, 2026
Term ExtensionOther-Than-Insignificant Payment Delay
Commercial real estate
Added a weighted average 2.0 months to the life of the modified loans
Delayed payment of weighted average 6.0 months
Construction/land/land development
Added a weighted average 6.1 months to the life of the modified loans
Delayed payment of weighted average 3.0 months
Single-family residential real estate
Added a weighted average 9.0 months to the life of the modified loans
Delayed payment of weighted average 3.0 months
Commercial and industrial
Added a weighted average 6.6 months to the life of the modified loans
N/A
Consumer
Added a weighted average 36.0 months to the life of the modified loans
Delayed payment of weighted average 2.0 months
Three Months Ended June 30, 2025
Term ExtensionOther-Than-Insignificant Payment Delay
Commercial real estate
Added a weighted average 3.7 months to the life of the modified loans
N/A
Construction/land/land development
Added a weighted average 6.0 months to the life of the modified loans
N/A
Single-family residential real estate
Added a weighted average 16.5 months to the life of the modified loans
Delayed payment of weighted average 4.0 months
Commercial and industrial
Added a weighted average 5.5 months to the life of the modified loans
Delayed payment of weighted average 4.0 months
Six Months Ended June 30, 2026
Term ExtensionOther-Than-Insignificant Payment Delay
Commercial real estate
Added a weighted average 4.7 months to the life of the modified loans
Delayed payment of weighted average 8.8 months
Construction/land/land development
Added a weighted average 6.9 months to the life of the modified loans
Delayed payment of weighted average 6.0 months
Single-family residential real estate
Added a weighted average 10.3 months to the life of the modified loans
Delayed payment of weighted average 3.6 months
Commercial and industrial
Added a weighted average 6.9 months to the life of the modified loans
Delayed payment of weighted average 3.0 months
Consumer
Added a weighted average 36.0 months to the life of the modified loans
Delayed payment of weighted average 2.0 months
Six Months Ended June 30, 2025
Term ExtensionOther-Than-Insignificant Payment Delay
Commercial real estate
Added a weighted average 5.6 months to the life of the modified loans
N/A
Construction/land/land development
Added a weighted average 6.2 months to the life of the modified loans
N/A
Single-family residential real estate
Added a weighted average 24.1 months to the life of the modified loans
Delayed Payment of weighted average 4.0 months
Commercial and industrial
Added a weighted average 6.1 months to the life of the modified loans
Delayed Payment of weighted average 4.0 months
The following table depicts the performance of loans that have been modified during the last twelve months ended June 30, 2026 and 2025:
Payment Status (Amortized Cost Basis)
June 30, 2026
(Dollars in thousands)Current30-89 Days Past Due90 Days or More Past Due
Loans secured by real estate:
Commercial real estate
$9,729 $1,431 $1,516 
Construction/land/land development
8,788 86 — 
Single-family residential real estate2,944 737 — 
Total real estate21,461 2,254 1,516 
Commercial and industrial24,164 493 2,045 
Consumer92 24 — 
Total LHFI$45,717 $2,771 $3,561 
Payment Status (Amortized Cost Basis)
June 30, 2025
(Dollars in thousands)Current30-89 Days Past Due90 Days or More Past Due
Loans secured by real estate:
Commercial real estate
$2,361 $— $— 
Construction/land/land development132 — 206 
Single-family residential real estate1,162 — 291 
Total real estate3,655 — 497 
Commercial and industrial27,967 1,800 2,279 
Total LHFI$31,622 $1,800 $2,776 
At June 30, 2026, and December 31, 2025, the Company had $869,000 and $52,000 of funding commitments for loans in which the terms were modified as a result of the borrowers experiencing financial difficulty, respectively.
The tables below provide the details of loans to borrowers experiencing financial difficulty that experienced a payment default during the three and six months ended June 30, 2026 and 2025, and were modified in the twelve months prior to that default:
Defaults During the Three Months Ended June 30, 2026
Term Extension
(Dollars in thousands)Amortized CostDefault Amount
Loans secured by real estate:
Commercial real estate
$7,323 $8,193 
Single-family residential real estate54 74 
Total real estate7,377 8,267 
Commercial and industrial2,350 3,883 
Total$9,727 $12,150 
Defaults During the Three Months Ended June 30, 2025
Term Extension
(Dollars in thousands)Amortized CostDefault Amount
Loans secured by real estate:
Construction/land/land development$206 $206 
Single-family residential real estate292 392 
Total real estate498 598 
Commercial and industrial2,279 3,995 
Total$2,777 $4,593 

Defaults During the Six Months Ended June 30, 2026
Term Extension
(Dollars in thousands)Amortized Cost Default Amount
Loans secured by real estate:
Construction/land/land development$7,323 $8,193 
Single-family residential real estate54 74 
Total real estate7,377 8,267 
Commercial and industrial2,674 6,684 
Total$10,051 $14,951 

Defaults During the Six Months Ended June 30, 2025
Term Extension
(Dollars in thousands)Amortized CostDefault Amount
Loans secured by real estate:
Commercial real estate
$— $257 
Construction/land/land development206 206 
Single-family residential real estate292 392 
Total real estate498 855 
Commercial and industrial2,279 5,535 
Total$2,777 $6,390 

A payment default is defined as a loan that was 90 or more days past due. The Company monitors the performance of modified loans on an ongoing basis. In the event of subsequent default, the ALCL is assessed on the basis of an individual evaluation in accordance with the Company’s policies, as discussed above. The modifications made during the periods presented did not significantly impact the Company’s determination of the allowance for credit losses.