In the ordinary course of business, the Company enters into financial instruments, such as commitments to extend credit and letters of credit, to meet the financing needs of its customers. Such instruments are not reflected in the accompanying consolidated financial statements until they are funded, although they expose the Company to varying degrees of credit risk and interest rate risk in much the same way as funded loans.

Commitments to extend credit include revolving commercial credit lines, non-revolving loan commitments issued mainly to finance the merger and development or construction of real property or equipment, and credit card and personal credit lines. The availability of funds under commercial credit lines and loan commitments generally depends on whether the borrower continues to meet credit standards established in the underlying contract and has not violated other contractual conditions. Loan commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee by the borrower. Credit card and personal credit lines are generally subject to cancellation if the borrower’s credit quality deteriorates. A number of commercial and personal credit lines are used only partially or, in some cases, not at all before they expire, and the total commitment amounts do not necessarily represent future cash requirements of the Company.

A substantial majority of the letters of credit are standby agreements that obligate the Company to fulfill a customer’s financial commitments to a third party if the customer is unable to perform. The Company issues standby letters of credit primarily to provide credit enhancement to its customers’ other commercial or public financing arrangements and to help them demonstrate financial capacity to vendors of essential goods and services.

The contract amounts of these instruments reflect the Company’s exposure to credit risk. The Company undertakes the same credit evaluation in making loan commitments and assuming conditional obligations as it does for on-balance sheet instruments and may require collateral or other credit support.



(Dollars in thousands) June 30, 2026	Less than One Year		One-Three Years		Three-Five Years		Greater than Five Years		Total
Commitments to extend credit(1)	$	697,502	$	1,011,770	$	519,239	$	103,416	$	2,331,927
Standby letters of credit	197,678		16,751		10,825		—		225,254
Total off-balance sheet commitments	$	895,180	$	1,028,521	$	530,064	$	103,416	$	2,557,181
December 31, 2025
Commitments to extend credit(1)	$	843,675	$	762,261	$	524,071	$	137,736	$	2,267,743
Standby letters of credit	214,588		7,530		21,673		—		243,791
Total off-balance sheet commitments	$	1,058,263	$	769,791	$	545,744	$	137,736	$	2,511,534

At June 30, 2026, the Company held 47 unfunded letters of credit from the FHLB totaling $728.5 million, with expiration dates ranging from July 23, 2026, to September 22, 2027. At December 31, 2025, the Company held 44 unfunded letters of credit from the FHLB totaling $598.3 million, with expiration dates ranging from January 2, 2026, to September 22, 2027. These letters of credit either support pledges for our public fund deposits or confirm letters of credit we have issued to support our customers’ businesses.

Management establishes an asset-specific allowance for certain lending-related commitments and computes a formula-based allowance for performing consumer and commercial lending-related commitments. These are computed using a methodology similar to that used for the commercial loan portfolio, modified for expected maturities and probabilities of drawdown. The reserve for lending-related commitments was $4.9 million and $4.5 million at June 30, 2026, and December 31, 2025, respectively, and is included in accrued expenses and other liabilities in the accompanying consolidated balance sheets.

As previously disclosed beginning in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, the Company discovered certain questioned activity involving a former banker in our East Texas market. As of June 30, 2026, the Company maintained a contingency reserve of $2.5 million related to this matter, which included a $389,000 release of reserve in the current quarter due to the settlement agreement discussed below.

The Company previously recorded provision for loan credit losses related to this matter of $4.1 million in 2024 and $1.3 million in 2025. During the six months ended June 30, 2026, the Company recognized $438,000 of related insurance recoveries of third party expenses in other noninterest income with cumulative recoveries totaling $3.0 million through June 30, 2026.

In August 2026, the Company executed a settlement agreement related to litigation involving the questioned activity; the terms of the agreement are confidential. However, based on information currently available, management does not expect to incur any additional losses related to this matter.

From time to time, the Company is also party to various other legal actions arising in the ordinary course of business. Currently, management has not identified any other loss contingencies, either individually or in the aggregate, which would have a material adverse effect on the consolidated financial position or liquidity of the Company.