v3.26.1
Loans and Allowance for Credit Losses (Tables)
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
Summary of Loans

A summary of loans at June 30, 2026 and December 31, 2025 follows (in thousands):

 

 

 

June 30, 2026

 

 

December 31, 2025

 

Construction and land development

 

$

365,391

 

 

$

361,678

 

Agricultural real estate

 

 

426,862

 

 

 

374,143

 

1-4 family residential properties

 

 

745,595

 

 

 

494,258

 

Multifamily residential properties

 

 

392,124

 

 

 

340,324

 

Commercial real estate

 

 

2,945,516

 

 

 

2,582,404

 

Loans secured by real estate

 

 

4,875,488

 

 

 

4,152,807

 

Agricultural loans

 

 

356,169

 

 

 

307,290

 

Commercial and industrial loans

 

 

1,506,339

 

 

 

1,385,421

 

Consumer loans

 

 

35,552

 

 

 

32,109

 

All other loans

 

 

207,162

 

 

 

161,604

 

Total gross loans

 

 

6,980,710

 

 

 

6,039,231

 

Less: loans held for sale

 

 

6,724

 

 

 

5,203

 

Total gross loans held for investment

 

 

6,973,986

 

 

 

6,034,028

 

Less:

 

 

 

 

 

 

Net deferred loan fees, premiums, and discounts

 

 

46,368

 

 

 

27,857

 

Allowance for credit losses

 

 

86,989

 

 

 

74,875

 

Net loans

 

$

6,840,629

 

 

$

5,931,296

 
Summary of Gross Commercial Real Estate Loans by Property Type

The following table represents the gross commercial real estate loans by property type as of June 30, 2026 (in thousands):

 

 

 

June 30, 2026

 

 

December 31, 2025

 

Commercial real estate

 

 

 

 

 

 

Owner occupied

 

$

842,439

 

 

$

747,512

 

Non-owner occupied

 

 

 

 

 

 

Shopping centers and malls

 

 

269,430

 

 

 

264,961

 

Industrial and warehouse

 

 

237,211

 

 

 

237,522

 

Hotels and motels

 

 

214,330

 

 

 

218,073

 

Office

 

 

191,607

 

 

 

160,524

 

Skilled nursing facility

 

 

178,026

 

 

 

187,875

 

Assisted living facility

 

 

175,232

 

 

 

170,733

 

Acquired loans not yet classified

 

 

147,127

 

 

 

—

 

Retail

 

 

142,510

 

 

 

112,169

 

RV parks and campgrounds

 

 

99,062

 

 

 

104,267

 

Other property types

 

 

448,542

 

 

 

378,768

 

Total commercial real estate

 

$

2,945,516

 

 

$

2,582,404

 
Allowance for Credit Losses Based on Portfolio Segment

The following table presents the balance in the allowance for credit losses and the recorded investment in loans based on portfolio segment and impairment method as of the three and six months ended June 30, 2026 (in thousands):

 

 

 

Construction
and Land
Development

 

 

Agricultural
Real Estate

 

 

1-4 Family
Residential
Properties

 

 

Commercial
Real Estate

 

 

Agricultural
Loans

 

 

Commercial
and
Industrial

 

 

Consumer
Loans

 

 

Total

 

Three months ended
June 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

4,940

 

 

$

1,415

 

 

$

5,943

 

 

$

41,619

 

 

$

2,663

 

 

$

28,553

 

 

$

1,681

 

 

$

86,814

 

Initial allowance on acquired loans with credit deterioration

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Initial allowance on acquired purchased seasoned loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Provision (release) for credit loss expense

 

 

189

 

 

 

(30

)

 

 

(125

)

 

 

(277

)

 

 

1,190

 

 

 

559

 

 

 

39

 

 

 

1,545

 

Loans charged off

 

 

—

 

 

 

—

 

 

 

(51

)

 

 

(10

)

 

 

(2,115

)

 

 

(19

)

 

 

(322

)

 

 

(2,517

)

Recoveries collected

 

 

—

 

 

 

—

 

 

 

196

 

 

 

29

 

 

 

45

 

 

 

716

 

 

 

161

 

 

 

1,147

 

 Ending balance

 

$

5,129

 

 

$

1,385

 

 

$

5,963

 

 

$

41,361

 

 

$

1,783

 

 

$

29,809

 

 

$

1,559

 

 

$

86,989

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended
June 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

5,129

 

 

$

1,283

 

 

$

3,753

 

 

$

35,589

 

 

$

1,401

 

 

$

26,285

 

 

$

1,435

 

 

$

74,875

 

Initial allowance on acquired loans with deterioration

 

 

441

 

 

 

60

 

 

 

188

 

 

 

1,767

 

 

 

18

 

 

 

543

 

 

 

2

 

 

 

3,019

 

Initial allowance on acquired purchased seasoned loans

 

 

545

 

 

 

124

 

 

 

1,952

 

 

 

3,593

 

 

 

58

 

 

 

1,361

 

 

 

189

 

 

 

7,822

 

Provision (release) for credit loss expense

 

 

(986

)

 

 

(42

)

 

 

(242

)

 

 

1,503

 

 

 

2,366

 

 

 

1,174

 

 

 

370

 

 

 

4,143

 

Loans charged off

 

 

—

 

 

 

(40

)

 

 

(77

)

 

 

(1,121

)

 

 

(2,115

)

 

 

(310

)

 

 

(820

)

 

 

(4,483

)

Recoveries collected

 

 

—

 

 

 

—

 

 

 

389

 

 

 

30

 

 

 

55

 

 

 

756

 

 

 

383

 

 

 

1,613

 

Ending balance

 

$

5,129

 

 

$

1,385

 

 

$

5,963

 

 

$

41,361

 

 

$

1,783

 

 

$

29,809

 

 

$

1,559

 

 

$

86,989

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table presents the balance in the allowance for credit losses and the recorded investment in loans based on portfolio segment and impairment method as of the three and six months ended June 30, 2025 (in thousands):

 

 

 

Construction
and Land
Development

 

 

Agricultural
Real Estate

 

 

1-4 Family
Residential
Properties

 

 

Commercial
Real Estate

 

 

Agricultural
Loans

 

 

Commercial
and
Industrial

 

 

Consumer
Loans

 

 

Total

 

Three months ended
June 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

3,731

 

 

$

1,292

 

 

$

3,544

 

 

$

32,214

 

 

$

1,649

 

 

$

26,028

 

 

$

1,593

 

 

$

70,051

 

Provision (release) for credit loss expense

 

 

335

 

 

 

30

 

 

 

(7

)

 

 

1,111

 

 

 

1,287

 

 

 

(203

)

 

 

14

 

 

 

2,567

 

Loans charged off

 

 

—

 

 

 

—

 

 

 

(55

)

 

 

(70

)

 

 

(1,386

)

 

 

(489

)

 

 

(261

)

 

 

(2,261

)

Recoveries collected

 

 

—

 

 

 

—

 

 

 

134

 

 

 

3

 

 

 

217

 

 

 

282

 

 

 

167

 

 

 

803

 

 Ending balance

 

$

4,066

 

 

$

1,322

 

 

$

3,616

 

 

$

33,258

 

 

$

1,767

 

 

$

25,618

 

 

$

1,513

 

 

$

71,160

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended
June 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

3,275

 

 

$

1,361

 

 

$

3,579

 

 

$

32,669

 

 

$

1,957

 

 

$

25,602

 

 

$

1,739

 

 

$

70,182

 

Provision (release) for credit loss expense

 

 

791

 

 

 

(39

)

 

 

(21

)

 

 

986

 

 

 

2,096

 

 

 

356

 

 

 

50

 

 

 

4,219

 

Loans charged off

 

 

—

 

 

 

—

 

 

 

(94

)

 

 

(408

)

 

 

(2,503

)

 

 

(712

)

 

 

(627

)

 

 

(4,344

)

Recoveries collected

 

 

—

 

 

 

—

 

 

 

152

 

 

 

11

 

 

 

217

 

 

 

372

 

 

 

351

 

 

 

1,103

 

 Ending balance

 

$

4,066

 

 

$

1,322

 

 

$

3,616

 

 

$

33,258

 

 

$

1,767

 

 

$

25,618

 

 

$

1,513

 

 

$

71,160

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Amortized Cost Basis of Collateral-Dependent Loans by Class of Loans Individually Evaluated

The following table presents the amortized cost basis of collateral-dependent loans by class of loans that were individually evaluated to determine expected credit losses, and the related allowance for credit losses, as of June 30, 2026 and December 31, 2025 (in thousands):

 

 

 

Collateral

 

 

Allowance
for Credit
Losses

 

June 30, 2026

 

Real Estate

 

 

Business
Assets

 

 

Other

 

 

Total

 

 

Construction and land development

 

$

5,724

 

 

$

—

 

 

$

—

 

 

$

5,724

 

 

$

412

 

Agricultural real estate

 

 

26,097

 

 

 

—

 

 

 

—

 

 

 

26,097

 

 

 

—

 

1-4 family residential properties

 

 

244

 

 

 

—

 

 

 

—

 

 

 

244

 

 

 

—

 

Multifamily residential properties

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Commercial real estate

 

 

30,041

 

 

 

—

 

 

 

—

 

 

 

30,041

 

 

 

167

 

Loans secured by real estate

 

 

62,106

 

 

 

—

 

 

 

—

 

 

 

62,106

 

 

 

579

 

Agricultural loans

 

 

—

 

 

 

22,760

 

 

 

—

 

 

 

22,760

 

 

 

5

 

Commercial and industrial loans

 

 

—

 

 

 

7,665

 

 

 

29

 

 

 

7,694

 

 

 

358

 

Other loans

 

 

—

 

 

 

10,445

 

 

 

—

 

 

 

10,445

 

 

 

122

 

Total loans

 

$

62,106

 

 

$

40,870

 

 

$

29

 

 

$

103,005

 

 

$

1,064

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Agricultural real estate

 

 

111

 

 

 

—

 

 

 

—

 

 

 

111

 

 

 

—

 

1-4 family residential properties

 

 

600

 

 

 

—

 

 

 

—

 

 

 

600

 

 

 

—

 

Multifamily residential properties

 

 

371

 

 

 

—

 

 

 

—

 

 

 

371

 

 

 

—

 

Commercial real estate

 

 

30,208

 

 

 

—

 

 

 

—

 

 

 

30,208

 

 

 

13

 

Loans secured by real estate

 

 

31,290

 

 

 

—

 

 

 

—

 

 

 

31,290

 

 

 

13

 

Agricultural loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Commercial and industrial loans

 

 

—

 

 

 

7,123

 

 

 

29

 

 

 

7,152

 

 

 

392

 

Other loans

 

 

—

 

 

 

11,184

 

 

 

—

 

 

 

11,184

 

 

 

84

 

Total loans

 

$

31,290

 

 

$

18,307

 

 

$

29

 

 

$

49,626

 

 

$

489

 
Credit Risk Profile of Loan Portfolio Based on Risk Rating Category and Payment Activity The following tables present the credit risk profile of the Company’s loan portfolio based on rating category and payment activity as of June 30, 2026 (in thousands):

 

June 30, 2026

 

Term Loans by Origination Year

 

 

Revolving

 

 

 

 

Risk rating

 

2026

 

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

Prior

 

 

Loans

 

 

Total

 

Construction and land development loans

 

Pass

 

$

80,817

 

 

$

110,481

 

 

$

120,411

 

 

$

3,766

 

 

$

11,239

 

 

$

28,970

 

 

$

—

 

 

$

355,684

 

Special mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

330

 

 

 

—

 

 

 

330

 

Substandard

 

 

—

 

 

 

—

 

 

 

3,200

 

 

 

307

 

 

 

5

 

 

 

2,222

 

 

 

—

 

 

 

5,734

 

Total

 

$

80,817

 

 

$

110,481

 

 

$

123,611

 

 

$

4,073

 

 

$

11,244

 

 

$

31,522

 

 

$

—

 

 

$

361,748

 

Current period gross write-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 Agricultural real estate loans

 

Pass

 

$

51,402

 

 

$

29,818

 

 

$

24,847

 

 

$

12,712

 

 

$

93,409

 

 

$

125,335

 

 

$

—

 

 

$

337,523

 

Special mention

 

 

11,422

 

 

 

1,204

 

 

 

3,698

 

 

 

907

 

 

 

21,919

 

 

 

15,625

 

 

 

—

 

 

 

54,775

 

Substandard

 

 

3,196

 

 

 

168

 

 

 

—

 

 

 

186

 

 

 

9,133

 

 

 

17,556

 

 

 

—

 

 

 

30,239

 

 Total

 

$

66,020

 

 

$

31,190

 

 

$

28,545

 

 

$

13,805

 

 

$

124,461

 

 

$

158,516

 

 

$

—

 

 

$

422,537

 

Current period gross write-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

40

 

 

$

—

 

 

$

40

 

 1-4 family residential properties

 

Pass

 

$

40,992

 

 

$

75,838

 

 

$

44,552

 

 

$

46,936

 

 

$

106,731

 

 

$

302,928

 

 

$

102,603

 

 

$

720,580

 

Special mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

172

 

 

 

665

 

 

 

100

 

 

 

937

 

Substandard

 

 

22

 

 

 

503

 

 

 

509

 

 

 

632

 

 

 

840

 

 

 

8,850

 

 

 

996

 

 

 

12,352

 

 Total

 

$

41,014

 

 

$

76,341

 

 

$

45,061

 

 

$

47,568

 

 

$

107,743

 

 

$

312,443

 

 

$

103,699

 

 

$

733,869

 

Current period gross write-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

47

 

 

$

30

 

 

$

—

 

 

$

77

 

 Commercial real estate loans

 

Pass

 

$

205,683

 

 

$

498,511

 

 

$

252,454

 

 

$

251,126

 

 

$

636,772

 

 

$

1,397,494

 

 

$

—

 

 

$

3,242,040

 

Special mention

 

 

133

 

 

 

50

 

 

 

2,790

 

 

 

8,701

 

 

 

9,434

 

 

 

8,560

 

 

 

—

 

 

 

29,668

 

Substandard

 

 

4,766

 

 

 

412

 

 

 

5,716

 

 

 

12,370

 

 

 

4,999

 

 

 

14,052

 

 

 

—

 

 

 

42,315

 

 Total

 

$

210,582

 

 

$

498,973

 

 

$

260,960

 

 

$

272,197

 

 

$

651,205

 

 

$

1,420,106

 

 

$

—

 

 

$

3,314,023

 

Current period gross write-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

753

 

 

$

368

 

 

$

—

 

 

$

—

 

 

$

1,121

 

 Agricultural loans

 

Pass

 

$

145,591

 

 

$

106,537

 

 

$

34,310

 

 

$

10,299

 

 

$

14,658

 

 

$

19,287

 

 

$

—

 

 

$

330,682

 

Special mention

 

 

326

 

 

 

1,540

 

 

 

125

 

 

 

36

 

 

 

139

 

 

 

644

 

 

 

—

 

 

 

2,810

 

Substandard

 

 

291

 

 

 

12,544

 

 

 

9,696

 

 

 

22

 

 

 

621

 

 

 

148

 

 

 

—

 

 

 

23,322

 

 Total

 

$

146,208

 

 

$

120,621

 

 

$

44,131

 

 

$

10,357

 

 

$

15,418

 

 

$

20,079

 

 

$

—

 

 

$

356,814

 

Current period gross write-offs

 

$

—

 

 

$

1,324

 

 

$

144

 

 

$

218

 

 

$

—

 

 

$

429

 

 

$

—

 

 

$

2,115

 

 Commercial and industrial loans

 

Pass

 

$

158,176

 

 

$

469,721

 

 

$

212,712

 

 

$

87,576

 

 

$

189,783

 

 

$

515,730

 

 

$

—

 

 

$

1,633,698

 

Special mention

 

 

59

 

 

 

18,856

 

 

 

8,949

 

 

 

2,670

 

 

 

1,211

 

 

 

18,859

 

 

 

—

 

 

 

50,604

 

Substandard

 

 

150

 

 

 

—

 

 

 

524

 

 

 

2,013

 

 

 

4,234

 

 

 

18,650

 

 

 

—

 

 

 

25,571

 

 Total

 

$

158,385

 

 

$

488,577

 

 

$

222,185

 

 

$

92,259

 

 

$

195,228

 

 

$

553,239

 

 

$

—

 

 

$

1,709,873

 

Current period gross write-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

290

 

 

$

8

 

 

$

12

 

 

$

—

 

 

$

310

 

 Consumer loans

 

Pass

 

$

5,359

 

 

$

8,127

 

 

$

3,757

 

 

$

3,179

 

 

$

9,604

 

 

$

5,053

 

 

$

—

 

 

$

35,079

 

Special mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

30

 

 

 

—

 

 

 

—

 

 

 

30

 

Substandard

 

 

—

 

 

 

39

 

 

 

30

 

 

 

1

 

 

 

161

 

 

 

138

 

 

 

—

 

 

 

369

 

 Total

 

$

5,359

 

 

$

8,166

 

 

$

3,787

 

 

$

3,180

 

 

$

9,795

 

 

$

5,191

 

 

$

—

 

 

$

35,478

 

Current period gross write-offs

 

$

1

 

 

$

1

 

 

$

16

 

 

$

33

 

 

$

71

 

 

$

698

 

 

$

—

 

 

$

820

 

 Total loans

 

Pass

 

$

688,020

 

 

$

1,299,033

 

 

$

693,043

 

 

$

415,594

 

 

$

1,062,196

 

 

$

2,394,797

 

 

$

102,603

 

 

$

6,655,286

 

Special mention

 

 

11,940

 

 

 

21,650

 

 

 

15,562

 

 

 

12,314

 

 

 

32,905

 

 

 

44,683

 

 

 

100

 

 

 

139,154

 

Substandard

 

 

8,425

 

 

 

13,666

 

 

 

19,675

 

 

 

15,531

 

 

 

19,993

 

 

 

61,616

 

 

 

996

 

 

 

139,902

 

Total

 

$

708,385

 

 

$

1,334,349

 

 

$

728,280

 

 

$

443,439

 

 

$

1,115,094

 

 

$

2,501,096

 

 

$

103,699

 

 

$

6,934,342

 

Current period gross write-offs

 

$

1

 

 

$

1,325

 

 

$

160

 

 

$

1,294

 

 

$

494

 

 

$

1,209

 

 

$

—

 

 

$

4,483

 

 

The following tables present the credit risk profile of the Company’s loan portfolio based on rating category and payment activity as of December 31, 2025 (in thousands):

 

December 31, 2025

 

Term Loans by Origination Year

 

 

Revolving

 

 

 

 

Risk rating

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

Prior

 

 

Loans

 

 

Total

 

Construction and land development loans

 

Pass

 

$

114,696

 

 

$

99,757

 

 

$

119,602

 

 

$

5,167

 

 

$

6,048

 

 

$

14,659

 

 

$

—

 

 

$

359,929

 

Special mention

 

 

—

 

 

 

—

 

 

 

398

 

 

 

—

 

 

 

—

 

 

 

348

 

 

 

—

 

 

 

746

 

Substandard

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5

 

 

 

—

 

 

 

7

 

 

 

—

 

 

 

12

 

 Total

 

$

114,696

 

 

$

99,757

 

 

$

120,000

 

 

$

5,172

 

 

$

6,048

 

 

$

15,014

 

 

$

—

 

 

$

360,687

 

Current period gross write-offs

 

$

—

 

 

$

—

 

 

$

107

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

107

 

 Agricultural real estate loans

 

Pass

 

$

42,758

 

 

$

22,040

 

 

$

12,609

 

 

$

107,950

 

 

$

61,357

 

 

$

87,939

 

 

$

—

 

 

$

334,653

 

Special mention

 

 

228

 

 

 

339

 

 

 

806

 

 

 

22,343

 

 

 

1,331

 

 

 

7,810

 

 

 

—

 

 

 

32,857

 

Substandard

 

 

598

 

 

 

194

 

 

 

—

 

 

 

224

 

 

 

392

 

 

 

4,490

 

 

 

—

 

 

 

5,898

 

 Total

 

$

43,584

 

 

$

22,573

 

 

$

13,415

 

 

$

130,517

 

 

$

63,080

 

 

$

100,239

 

 

$

—

 

 

$

373,408

 

Current period gross write-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 1-4 family residential properties

 

Pass

 

$

54,180

 

 

$

31,041

 

 

$

28,668

 

 

$

62,974

 

 

$

64,512

 

 

$

144,475

 

 

$

92,629

 

 

$

478,479

 

Special mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

185

 

 

 

93

 

 

 

760

 

 

 

—

 

 

 

1,038

 

Substandard

 

 

127

 

 

 

529

 

 

 

584

 

 

 

624

 

 

 

670

 

 

 

6,946

 

 

 

857

 

 

 

10,337

 

 Total

 

$

54,307

 

 

$

31,570

 

 

$

29,252

 

 

$

63,783

 

 

$

65,275

 

 

$

152,181

 

 

$

93,486

 

 

$

489,854

 

Current period gross write-offs

 

$

—

 

 

$

12

 

 

$

9

 

 

$

—

 

 

$

—

 

 

$

135

 

 

$

—

 

 

$

156

 

 Commercial real estate loans

 

Pass

 

$

459,831

 

 

$

217,098

 

 

$

157,923

 

 

$

597,491

 

 

$

498,456

 

 

$

916,195

 

 

$

—

 

 

$

2,846,994

 

Special mention

 

 

—

 

 

 

371

 

 

 

1,150

 

 

 

12,931

 

 

 

248

 

 

 

4,760

 

 

 

—

 

 

 

19,460

 

Substandard

 

 

—

 

 

 

5,000

 

 

 

15,295

 

 

 

6,246

 

 

 

2,394

 

 

 

8,763

 

 

 

—

 

 

 

37,698

 

 Total

 

$

459,831

 

 

$

222,469

 

 

$

174,368

 

 

$

616,668

 

 

$

501,098

 

 

$

929,718

 

 

$

—

 

 

$

2,904,152

 

Current period gross write-offs

 

$

—

 

 

$

699

 

 

$

—

 

 

$

391

 

 

$

—

 

 

$

107

 

 

$

—

 

 

$

1,197

 

 Agricultural loans

 

Pass

 

$

230,666

 

 

$

45,361

 

 

$

7,684

 

 

$

10,151

 

 

$

6,363

 

 

$

2,560

 

 

$

—

 

 

$

302,785

 

Special mention

 

 

1,209

 

 

 

76

 

 

 

11

 

 

 

—

 

 

 

23

 

 

 

—

 

 

 

—

 

 

 

1,319

 

Substandard

 

 

451

 

 

 

367

 

 

 

2,484

 

 

 

845

 

 

 

24

 

 

 

—

 

 

 

—

 

 

 

4,171

 

 Total

 

$

232,326

 

 

$

45,804

 

 

$

10,179

 

 

$

10,996

 

 

$

6,410

 

 

$

2,560

 

 

$

—

 

 

$

308,275

 

Current period gross write-offs

 

$

—

 

 

$

280

 

 

$

1,081

 

 

$

836

 

 

$

306

 

 

$

—

 

 

$

—

 

 

$

2,503

 

 Commercial and industrial loans

 

Pass

 

$

431,942

 

 

$

214,908

 

 

$

82,977

 

 

$

210,658

 

 

$

159,029

 

 

$

357,077

 

 

$

—

 

 

$

1,456,591

 

Special mention

 

 

19,409

 

 

 

8,898

 

 

 

2,542

 

 

 

7,965

 

 

 

61

 

 

 

26,193

 

 

 

—

 

 

 

65,068

 

Substandard

 

 

—

 

 

 

1,397

 

 

 

2,180

 

 

 

1,008

 

 

 

219

 

 

 

16,617

 

 

 

—

 

 

 

21,421

 

 Total

 

$

451,351

 

 

$

225,203

 

 

$

87,699

 

 

$

219,631

 

 

$

159,309

 

 

$

399,887

 

 

$

—

 

 

$

1,543,080

 

Current period gross write-offs

 

$

—

 

 

$

—

 

 

$

163

 

 

$

225

 

 

$

497

 

 

$

1,600

 

 

$

—

 

 

$

2,485

 

 Consumer loans

 

Pass

 

$

5,619

 

 

$

2,555

 

 

$

2,812

 

 

$

12,861

 

 

$

5,511

 

 

$

2,119

 

 

$

—

 

 

$

31,477

 

Special mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

22

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

22

 

Substandard

 

 

—

 

 

 

30

 

 

 

9

 

 

 

171

 

 

 

132

 

 

 

77

 

 

 

—

 

 

 

419

 

 Total

 

$

5,619

 

 

$

2,585

 

 

$

2,821

 

 

$

13,054

 

 

$

5,643

 

 

$

2,196

 

 

$

—

 

 

$

31,918

 

Current period gross write-offs

 

$

5

 

 

$

23

 

 

$

27

 

 

$

99

 

 

$

43

 

 

$

1,228

 

 

$

—

 

 

$

1,425

 

 Total loans

 

Pass

 

$

1,339,692

 

 

$

632,760

 

 

$

412,275

 

 

$

1,007,252

 

 

$

801,276

 

 

$

1,525,024

 

 

$

92,629

 

 

$

5,810,908

 

Special mention

 

 

20,846

 

 

 

9,684

 

 

 

4,907

 

 

 

43,446

 

 

 

1,756

 

 

 

39,871

 

 

 

—

 

 

 

120,510

 

Substandard

 

 

1,176

 

 

 

7,517

 

 

 

20,552

 

 

 

9,123

 

 

 

3,831

 

 

 

36,900

 

 

 

857

 

 

 

79,956

 

Total

 

$

1,361,714

 

 

$

649,961

 

 

$

437,734

 

 

$

1,059,821

 

 

$

806,863

 

 

$

1,601,795

 

 

$

93,486

 

 

$

6,011,374

 

Current period gross write-offs

 

$

5

 

 

$

1,014

 

 

$

1,387

 

 

$

1,551

 

 

$

846

 

 

$

3,070

 

 

$

—

 

 

$

7,873

 

 
Loan Portfolio, on Amortized Cost Basis, Aging Analysis

The following table presents the Company’s loan portfolio, on an amortized cost basis, aging analysis at June 30, 2026 and December 31, 2025 (in thousands):

 

 

 

30-59 Days
Past Due

 

 

60-89 Days
Past Due

 

 

90 Days
or More
Past Due

 

 

Total
Past Due

 

 

Current

 

 

Total Loans
Receivable

 

 

Total Loans
> 90 Days and
Accruing

 

June 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$

—

 

 

$

—

 

 

$

2,183

 

 

$

2,183

 

 

$

359,565

 

 

$

361,748

 

 

$

—

 

Agricultural real estate

 

 

78

 

 

 

—

 

 

 

1,148

 

 

 

1,226

 

 

 

421,311

 

 

 

422,537

 

 

 

—

 

1-4 family residential properties

 

 

515

 

 

 

2,431

 

 

 

2,345

 

 

 

5,291

 

 

 

728,578

 

 

 

733,869

 

 

 

—

 

Multifamily residential properties

 

 

—

 

 

 

—

 

 

 

105

 

 

 

105

 

 

 

390,742

 

 

 

390,847

 

 

 

—

 

Commercial real estate

 

 

3,101

 

 

 

209

 

 

 

8,463

 

 

 

11,773

 

 

 

2,911,403

 

 

 

2,923,176

 

 

 

—

 

Loans secured by real estate

 

 

3,694

 

 

 

2,640

 

 

 

14,244

 

 

 

20,578

 

 

 

4,811,599

 

 

 

4,832,177

 

 

 

—

 

Agricultural loans

 

 

291

 

 

 

37

 

 

 

—

 

 

 

328

 

 

 

356,486

 

 

 

356,814

 

 

 

—

 

Commercial and industrial loans

 

 

2,070

 

 

 

97

 

 

 

1,892

 

 

 

4,059

 

 

 

1,498,892

 

 

 

1,502,951

 

 

 

—

 

Consumer loans

 

 

149

 

 

 

89

 

 

 

45

 

 

 

283

 

 

 

35,195

 

 

 

35,478

 

 

 

—

 

All other loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

206,922

 

 

 

206,922

 

 

 

—

 

Total loans

 

$

6,204

 

 

$

2,863

 

 

$

16,181

 

 

$

25,248

 

 

$

6,909,094

 

 

$

6,934,342

 

 

$

—

 

Percent of total loans

 

 

 

 

 

 

 

 

 

 

 

0.36

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

360,687

 

 

$

360,687

 

 

$

—

 

Agricultural real estate

 

 

—

 

 

 

—

 

 

 

841

 

 

 

841

 

 

 

372,567

 

 

 

373,408

 

 

 

—

 

1-4 family residential properties

 

 

4,725

 

 

 

1,630

 

 

 

1,687

 

 

 

8,042

 

 

 

481,812

 

 

 

489,854

 

 

 

—

 

Multifamily residential properties

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

339,482

 

 

 

339,482

 

 

 

—

 

Commercial real estate

 

 

712

 

 

 

228

 

 

 

5,671

 

 

 

6,611

 

 

 

2,558,059

 

 

 

2,564,670

 

 

 

—

 

Loans secured by real estate

 

 

5,437

 

 

 

1,858

 

 

 

8,199

 

 

 

15,494

 

 

 

4,112,607

 

 

 

4,128,101

 

 

 

—

 

Agricultural loans

 

 

—

 

 

 

19

 

 

 

—

 

 

 

19

 

 

 

308,256

 

 

 

308,275

 

 

 

—

 

Commercial and industrial loans

 

 

414

 

 

 

205

 

 

 

904

 

 

 

1,523

 

 

 

1,380,075

 

 

 

1,381,598

 

 

 

—

 

Consumer loans

 

 

329

 

 

 

44

 

 

 

111

 

 

 

484

 

 

 

31,434

 

 

 

31,918

 

 

 

—

 

All other loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

161,482

 

 

 

161,482

 

 

 

—

 

Total loans

 

$

6,180

 

 

$

2,126

 

 

$

9,214

 

 

$

17,520

 

 

$

5,993,854

 

 

$

6,011,374

 

 

$

—

 

Percent of total loans

 

 

 

 

 

 

 

 

 

 

 

0.29

%

 

 

 

 

 

 

 

 

 
Recorded Balance of Loans on Nonaccrual Loans

The following table presents the Company’s recorded balance of nonaccrual loans as of June 30, 2026 and December 31, 2025 (in thousands). This table excludes performing purchased credit deteriorated loans and performing loans modified.

 

 

June 30, 2026

 

 

December 31, 2025

 

 

 

Nonaccrual
with no
Allowance for

 

 

Total

 

 

Nonaccrual
with no
Allowance for

 

 

Total

 

 

 

Credit Loss

 

 

Nonaccrual

 

 

Credit Loss

 

 

Nonaccrual

 

Construction and land development

 

$

—

 

 

$

1,423

 

 

$

5

 

 

$

5

 

Agricultural real estate

 

 

2,930

 

 

 

4,306

 

 

 

1,181

 

 

 

1,181

 

1-4 family residential properties

 

 

7,636

 

 

 

9,405

 

 

 

4,940

 

 

 

5,763

 

Multifamily residential properties

 

 

105

 

 

 

105

 

 

 

371

 

 

 

371

 

Commercial real estate

 

 

11,020

 

 

 

11,329

 

 

 

10,109

 

 

 

10,381

 

Loans secured by real estate

 

 

21,691

 

 

 

26,568

 

 

 

16,606

 

 

 

17,701

 

Agricultural loans

 

 

24

 

 

 

24

 

 

 

19

 

 

 

19

 

Commercial and industrial loans

 

 

2,249

 

 

 

3,250

 

 

 

1,232

 

 

 

1,967

 

Consumer loans

 

 

141

 

 

 

141

 

 

 

182

 

 

 

182

 

All other loans

 

 

1,461

 

 

 

10,446

 

 

 

1,942

 

 

 

11,184

 

Total loans

 

$

25,566

 

 

$

40,429

 

 

$

19,981

 

 

$

31,053

 
Amortized Cost Basis of Loans Experiencing Financial Difficulty and Modified

The following table shows the amortized cost of loans at June 30, 2026 and 2025 that were both experiencing financial difficulty and modified segregated by portfolio segment and type of modification. The percentage of the amortized cost of loans that were modified to borrowers in financial distress as compared to outstanding loans is also presented below.

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

Payment

 

 

Term

 

 

Interest

 

 

Class of

 

 

 

Delay

 

 

Extension

 

 

Rate

 

 

Financing

 

 

 

Investment

 

 

Modifications

 

 

Reduction

 

 

Receivable

 

June 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

Agricultural real estate

 

$

275

 

 

$

—

 

 

$

—

 

 

 

—

%

1-4 family residential properties

 

 

7

 

 

 

1,038

 

 

 

—

 

 

 

0.02

%

Commercial real estate

 

 

546

 

 

 

—

 

 

 

505

 

 

 

0.02

%

Loans secured by real estate

 

 

828

 

 

 

1,038

 

 

 

505

 

 

 

0.04

%

Commercial and industrial loans

 

 

418

 

 

 

1,907

 

 

 

—

 

 

 

0.03

%

Consumer loans

 

 

—

 

 

 

1

 

 

 

—

 

 

 

—

%

Total

 

$

1,246

 

 

$

2,946

 

 

$

505

 

 

 

0.07

%

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

Agricultural real estate

 

$

296

 

 

$

—

 

 

$

—

 

 

 

0.01

%

1-4 family residential properties

 

 

40

 

 

 

736

 

 

 

—

 

 

 

0.01

%

Commercial real estate

 

 

792

 

 

 

130

 

 

 

505

 

 

 

0.02

%

Loans secured by real estate

 

 

1,128

 

 

 

866

 

 

 

505

 

 

 

0.04

%

Commercial and industrial loans

 

 

831

 

 

 

81

 

 

 

—

 

 

 

0.02

%

Consumer loans

 

 

—

 

 

 

6

 

 

 

—

 

 

 

—

%

Total

 

$

1,959

 

 

$

953

 

 

$

505

 

 

 

0.06

%

 
Performance of loans modified

The Company closely monitors the performance of loans that have been modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table shows the performance of such loans that have been modified in the last twelve months ended June 30, 2026 and 2025.

 

 

30-59 Days
Past Due

 

 

60-89 Days
Past Due

 

 

90 Days
or More
Past Due

 

 

Total Past
Due

 

June 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 
Financial Effect of Loan Modifications

The following table shows the financial effect of loan modifications during the three and six months ended June 30, 2026 and 2025 to borrowers experiencing financial difficulty.

 

 

Three months ended

 

 

Six months ended

 

 

 

Weighted Average

 

 

Weighted Average

 

 

Weighted Average

 

 

Weighted Average

 

 

 

Interest Rate

 

 

Term Extension

 

 

Interest Rate

 

 

Term Extension

 

 

 

Reduction

 

 

(in months)

 

 

Reduction

 

 

(in months)

 

June 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

—

%

 

 

—

 

 

 

—

%

 

 

—

 

Commercial and industrial loans

 

 

—

%

 

 

7

 

 

 

—

%

 

 

7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

—

%

 

 

—

 

 

 

1.00

%

 

 

—

 

Commercial and industrial loans

 

 

—

%

 

 

—

 

 

 

—

%

 

 

—