v3.26.1
LOANS AND ALLOWANCE FOR CREDIT LOSSES
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
LOANS AND ALLOWANCE FOR CREDIT LOSSES
NOTE 3 – LOANS AND ALLOWANCE FOR CREDIT LOSSES

Loans are stated at amortized cost. Balances within the major loans receivable categories are presented in the following table:

(dollars in thousands)June 30, 2026December 31, 2025
Commercial and industrial$3,453,501 $3,288,505 
Consumer157,252 180,010 
Mortgage warehouse1,345,808 1,150,782 
Municipal415,396 434,234 
Premium finance1,534,445 1,306,267 
Real estate – construction and development1,702,983 1,469,250 
Real estate – commercial and farmland9,243,359 9,311,405 
Real estate – residential4,325,121 4,373,069 
Loans, net of unearned income$22,177,865 $21,513,522 

Accrued interest receivable on loans totaling $81.2 million and $80.0 million at June 30, 2026 and December 31, 2025, respectively, is reported in other assets on the consolidated balance sheets. The Company had no recorded allowance for credit losses related to accrued interest on loans at both June 30, 2026 and December 31, 2025.

Nonaccrual and Past-Due Loans

A loan is placed on nonaccrual status when, in management’s judgment, the collection of the interest income appears doubtful. Past-due loans are loans whose principal or interest is past due 30 days or more. In some cases, where borrowers are experiencing financial difficulties, loans may be restructured to provide terms significantly different from the original contractual terms.
The following table presents an analysis of loans accounted for on a nonaccrual basis:

(dollars in thousands)June 30, 2026December 31, 2025
Commercial and industrial$13,389 $17,536 
Consumer 487 703 
Real estate – construction and development1,131 1,264 
Real estate – commercial and farmland11,938 6,456 
Real estate – residential(1)
93,581 83,099 
$120,526 $109,058 
(1) Included in real estate - residential were $33.7 million and $24.3 million of serviced GNMA-guaranteed nonaccrual loans at June 30, 2026 and December 31, 2025, respectively.

Interest income recognized on nonaccrual loans during the six months ended June 30, 2026 and 2025 was not material.

The following table presents an analysis of nonaccrual loans with no related allowance for credit losses:

(dollars in thousands)June 30, 2026December 31, 2025
Commercial and industrial$3,470 $4,884 
Real estate – construction and development303 644 
Real estate – commercial and farmland8,817 4,118 
Real estate – residential51,983 43,334 
$64,573 $52,980 
The following table presents an analysis of past-due loans as of June 30, 2026 and December 31, 2025:

(dollars in thousands)Loans
30-59
Days Past
Due		Loans
60-89
Days
Past Due		Loans 90
or More
Days Past
Due		Total
Loans
Past Due		Current
Loans		Total
Loans		Loans 90
Days or
More Past
Due and
Still
Accruing
June 30, 2026
Commercial and industrial$9,582 $5,662 $9,139 $24,383 $3,429,118 $3,453,501 $19 
Consumer 1,856 5,955 136 7,947 149,305 157,252 — 
Mortgage warehouse— — — — 1,345,808 1,345,808 — 
Municipal— — — — 415,396 415,396 — 
Premium finance10,024 8,835 8,345 27,204 1,507,241 1,534,445 8,345 
Real estate – construction and development2,131 1,380 638 4,149 1,698,834 1,702,983 — 
Real estate – commercial and farmland1,321 63 3,809 5,193 9,238,166 9,243,359 — 
Real estate – residential54,165 23,358 83,423 160,946 4,164,175 4,325,121 — 
Total$79,079 $45,253 $105,490 $229,822 $21,948,043 $22,177,865 $8,364 
December 31, 2025
Commercial and industrial$8,890 $5,938 $8,470 $23,298 $3,265,207 $3,288,505 $— 
Consumer 3,655 2,199 198 6,052 173,958 180,010 — 
Mortgage warehouse— — — — 1,150,782 1,150,782 — 
Municipal— — — — 434,234 434,234 — 
Premium finance13,463 6,961 8,492 28,916 1,277,351 1,306,267 8,492 
Real estate – construction and development2,238 349 938 3,525 1,465,725 1,469,250 — 
Real estate – commercial and farmland1,707 16 5,770 7,493 9,303,912 9,311,405 — 
Real estate – residential42,310 17,680 79,502 139,492 4,233,577 4,373,069 — 
Total$72,263 $33,143 $103,370 $208,776 $21,304,746 $21,513,522 $8,492 

Collateral-Dependent Loans

Collateral-dependent loans are loans where repayment is expected to be provided substantially through the operation or sale of the collateral when the borrower is experiencing financial difficulty. If the Company determines that foreclosure is probable, these loans are written down to the lower of cost or fair value of the collateral less estimated costs to sell. When repayment is expected to be from the operation of the collateral, the allowance for credit losses is calculated as the amount by which the amortized cost basis of the financial asset exceeds the present value of expected cash flows from the operation of the collateral. The Company may, in the alternative, measure the allowance for credit losses as the amount by which the amortized cost basis of the financial asset exceeds the estimated fair value of the collateral.
The following table presents an analysis of individually evaluated collateral-dependent financial assets and related allowance for credit losses:

June 30, 2026December 31, 2025
(dollars in thousands)BalanceAllowance for Credit LossesBalanceAllowance for Credit Losses
Commercial and industrial$6,895 $755 $12,057 $1,866 
Premium finance596 — 1,296 1 
Real estate – construction and development690 47 902 42 
Real estate – commercial and farmland11,029 427 5,084 378 
Real estate – residential20,996 3,251 22,494 2,857 
$40,206 $4,480 $41,833 $5,144 

Credit Quality Indicators

The Company uses a five category risk grading system to assign a risk grade to each loan in the portfolio. The following is a description of the general characteristics of the grades:

Pass – This grade represents acceptable credit risk to the Company based on factors including creditworthiness of the borrower, current performance and nature of the collateral.

Other Assets Especially Mentioned ("Special Mention") – This grade includes loans that exhibit potential weaknesses that deserve management’s close attention. If left uncorrected, these weaknesses may result in deterioration of the repayment prospects for the asset or in the Company’s credit position at some future date.

Substandard – This grade represents loans which are inadequately protected by the current creditworthiness and paying capacity of the borrower or of the collateral pledged, if any. These assets exhibit a well-defined weakness or are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. These weaknesses may be characterized by past due performance, operating losses or questionable collateral values.

Doubtful – This grade includes loans which exhibit all of the characteristics of a substandard loan with the added provision that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable or improbable.

Loss – This grade is assigned to loans which are considered uncollectible and of such little value that their continuance as active assets of the Bank is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing it off.

The following tables present the loan portfolio's amortized cost by class of financing receivable, risk grade and year of origination (in thousands) as of June 30, 2026 and December 31, 2025. Generally, current period renewals of credit are underwritten again at the point of renewal and considered current period originations for purposes of the tables below. The Company had an immaterial amount of revolving loans which converted to term loans and the amortized cost basis of those loans is included in the applicable origination year. There were no loans risk graded doubtful or loss at June 30, 2026 or December 31, 2025.
As of June 30, 2026
Term Loans by Origination YearRevolving Loans Amortized Cost Basis
20262025202420232022PriorTotal
Commercial and Industrial
Risk Grade:
Pass$538,756 $759,335 $542,361 $331,362 $347,752 $185,366 $721,931 $3,426,863 
Special mention140 2,926 420 138 — 258 7,723 11,605 
Substandard519 1,010 4,179 3,251 941 4,142 991 15,033 
Total commercial and industrial$539,415 $763,271 $546,960 $334,751 $348,693 $189,766 $730,645 $3,453,501 
Current-period gross charge offs$348 $4,208 $5,351 $4,626 $3,376 $1,099 $237 $19,245 
Consumer
Risk Grade:
Pass$13,582 $29,399 $11,118 $6,430 $2,612 $23,572 $69,347 $156,060 
Special mention— — — — — 14 475 489 
Substandard— 145 81 60 44 291 82 703 
Total consumer$13,582 $29,544 $11,199 $6,490 $2,656 $23,877 $69,904 $157,252 
Current-period gross charge offs$2 $6,577 $1,155 $108 $107 $743 $165 $8,857 
Mortgage Warehouse
Risk Grade:
Pass$— $— $— $— $— $— $1,345,808 $1,345,808 
Total mortgage warehouse$— $— $— $— $— $— $1,345,808 $1,345,808 
Current-period gross charge offs$— $— $— $— $— $— $— $— 
Municipal
Risk Grade:
Pass$5,030 $25,266 $31,601 $8,506 $41,776 $302,398 $819 $415,396 
Total municipal$5,030 $25,266 $31,601 $8,506 $41,776 $302,398 $819 $415,396 
Current-period gross charge offs$— $— $— $— $— $— $— $— 
Premium Finance
Risk Grade:
Pass$1,280,414 $238,260 $7,427 $— $— $— $— $1,526,101 
Substandard2,031 6,123 190 — — — — 8,344 
Total premium finance$1,282,445 $244,383 $7,617 $— $— $— $— $1,534,445 
Current-period gross charge offs$4 $3,978 $333 $— $— $— $— $4,315 
As of June 30, 2026
Term Loans by Origination YearRevolving Loans Amortized Cost Basis
20262025202420232022PriorTotal
Real Estate – Construction and Development
Risk Grade:
Pass$314,613 $651,454 $367,538 $30,564 $139,670 $108,078 $83,102 $1,695,019 
Special mention58 1,696 2,483 30 — 71 — 4,338 
Substandard— — 81 75 1,114 2,356 — 3,626 
Total real estate – construction and development$314,671 $653,150 $370,102 $30,669 $140,784 $110,505 $83,102 $1,702,983 
Current-period gross charge offs$— $— $— $— $— $— $— $— 
Real Estate – Commercial and Farmland
Risk Grade:
Pass$594,208 $1,345,586 $360,135 $404,813 $2,559,114 $3,790,977 $100,467 $9,155,300 
Special mention— 408 — 1,230 18,214 22,687 — 42,539 
Substandard— 7,383 344 1,367 23,369 12,958 99 45,520 
Total real estate – commercial and farmland$594,208 $1,353,377 $360,479 $407,410 $2,600,697 $3,826,622 $100,566 $9,243,359 
Current-period gross charge offs$— $1,529 $— $— $— $32 $— $1,561 
Real Estate - Residential
Risk Grade:
Pass$237,231 $201,357 $140,568 $479,506 $1,079,424 $1,730,038 $353,847 $4,221,971 
Special mention— — — — — 906 1,144 2,050 
Substandard— 10,789 16,925 9,689 18,858 36,892 7,947 101,100 
Total real estate - residential$237,231 $212,146 $157,493 $489,195 $1,098,282 $1,767,836 $362,938 $4,325,121 
Current-period gross charge offs$— $— $38 $34 $86 $7 $— $165 
Total Loans
Risk Grade:
Pass$2,983,834 $3,250,657 $1,460,748 $1,261,181 $4,170,348 $6,140,429 $2,675,321 $21,942,518 
Special mention198 5,030 2,903 1,398 18,214 23,936 9,342 61,021 
Substandard2,550 25,450 21,800 14,442 44,326 56,639 9,119 174,326 
Total loans$2,986,582 $3,281,137 $1,485,451 $1,277,021 $4,232,888 $6,221,004 $2,693,782 $22,177,865 
Total current-period gross charge offs$354 $16,292 $6,877 $4,768 $3,569 $1,881 $402 $34,143 
As of December 31, 2025
Term Loans by Origination YearRevolving Loans Amortized Cost Basis
20252024202320222021PriorTotal
Commercial and Industrial
Risk Grade:
Pass$934,457 $644,695 $403,869 $375,741 $151,316 $74,208 $679,681 $3,263,967 
Special mention957 470 19 835 1,143 1,294 384 5,102 
Substandard1,191 4,406 5,273 1,673 2,843 2,786 1,264 19,436 
Total commercial and industrial$936,605 $649,571 $409,161 $378,249 $155,302 $78,288 $681,329 $3,288,505 
YTD June 30, 2025 gross charge-offs$330 $4,214 $6,872 $8,276 $2,061 $623 $— $22,376 
Consumer
Risk Grade:
Pass$58,282 $12,126 $9,095 $3,652 $908 $28,711 $66,097 $178,871 
Special mention— 14 — 9 — 19 — 42 
Substandard116 192 153 50 19 510 57 1,097 
Total consumer$58,398 $12,332 $9,248 $3,711 $927 $29,240 $66,154 $180,010 
YTD June 30, 2025 gross charge-offs$— $394 $215 $274 $27 $943 $— $1,853 
Mortgage Warehouse
Risk Grade:
Pass$— $— $— $— $— $— $1,150,782 $1,150,782 
Total mortgage warehouse$— $— $— $— $— $— $1,150,782 $1,150,782 
YTD June 30, 2025 gross charge-offs$— $— $— $— $— $— $— $— 
Municipal
Risk Grade:
Pass$26,343 $30,899 $8,708 $42,797 $34,928 $289,740 $819 $434,234 
Total municipal$26,343 $30,899 $8,708 $42,797 $34,928 $289,740 $819 $434,234 
YTD June 30, 2025 gross charge-offs$— $— $— $— $— $— $— $— 
Premium Finance
Risk Grade:
Pass$1,278,242 $19,305 $227 $— $— $— $— $1,297,774 
Substandard7,945 548 — — — — — 8,493 
Total premium finance$1,286,187 $19,853 $227 $— $— $— $— $1,306,267 
YTD June 30, 2025 gross charge-offs$364 $4,477 $206 $1 $— $— $— $5,048 
Real Estate – Construction and Development
Risk Grade:
Pass$639,978 $384,683 $38,088 $183,595 $97,961 $42,251 $78,824 $1,465,380 
Special mention— — — 150 — 240 — 390 
Substandard— 584 103 512 335 1,946 — 3,480 
Total real estate – construction and development$639,978 $385,267 $38,191 $184,257 $98,296 $44,437 $78,824 $1,469,250 
YTD June 30, 2025 gross charge-offs$— $— $— $— $— $— $— $— 
As of December 31, 2025
Term Loans by Origination YearRevolving Loans Amortized Cost Basis
20252024202320222021PriorTotal
Real Estate – Commercial and Farmland
Risk Grade:
Pass$1,344,318 $324,535 $437,240 $2,731,134 $1,974,974 $2,321,409 $100,635 $9,234,245 
Special mention— — — 7,972 15,851 8,411 — 32,234 
Substandard9,000 344 1,355 17,292 1,725 15,110 100 44,926 
Total real estate – commercial and farmland$1,353,318 $324,879 $438,595 $2,756,398 $1,992,550 $2,344,930 $100,735 $9,311,405 
YTD June 30, 2025 gross charge-offs$— $— $— $— $— $— $— $— 
Real Estate - Residential
Risk Grade:
Pass$229,509 $156,412 $537,032 $1,159,471 $965,202 $889,948 $342,918 $4,280,492 
Special mention— — — 47 28 1,113 753 1,941 
Substandard4,908 8,516 8,945 22,084 9,197 29,744 7,242 90,636 
Total real estate - residential$234,417 $164,928 $545,977 $1,181,602 $974,427 $920,805 $350,913 $4,373,069 
YTD June 30, 2025 gross charge-offs$— $— $171 $— $— $162 $— $333 
Total Loans
Risk Grade:
Pass$4,511,129 $1,572,655 $1,434,259 $4,496,390 $3,225,289 $3,646,267 $2,419,756 $21,305,745 
Special mention957 484 19 9,013 17,022 11,077 1,137 39,709 
Substandard23,160 14,590 15,829 41,611 14,119 50,096 8,663 168,068 
Total loans$4,535,246 $1,587,729 $1,450,107 $4,547,014 $3,256,430 $3,707,440 $2,429,556 $21,513,522 
YTD June 30, 2025 gross charge-offs$694 $9,085 $7,464 $8,551 $2,088 $1,728 $— $29,610 

Allowance for Credit Losses on Loans

The allowance for credit losses represents an allowance for expected losses over the remaining contractual life of the assets. The contractual term does not consider extensions, renewals or modifications. The Company segregates the loan portfolio by type of loan and utilizes this segregation in evaluating exposure to risks within the portfolio.

Loan losses are charged against the allowance when management believes the collection of a loan’s principal is unlikely. Subsequent recoveries are credited to the allowance. Consumer loans are charged off in accordance with the Federal Financial Institutions Examination Council’s (the “FFIEC”) Uniform Retail Credit Classification and Account Management Policy. Commercial loans are charged off when they are deemed uncollectible, which usually involves a triggering event within the collection effort. If the loan is collateral dependent, the loss is more easily identified and is charged off when it is identified, usually based upon receipt of an appraisal. However, when a loan has guarantor support, the Company may carry the estimated loss as a reserve against the loan while collection efforts with the guarantor are pursued. If, after collection efforts with the guarantor are complete, the deficiency is still considered uncollectible, the loss is charged off and any further collections are treated as recoveries. In all situations, when a loan is downgraded to an Asset Quality Rating of Loss, the uncollectible portion is charged off.
The Company’s methodologies for estimating the allowance for credit losses consider available relevant information about the collectability of cash flows, including information about past events, current conditions, and reasonable and supportable forecasts. The methodologies apply historical loss information, adjusted for asset-specific characteristics, economic conditions at the measurement date, and forecasts about future economic conditions expected to exist through the contractual lives of the financial assets that are reasonable and supportable, to the identified pools of loans with similar risk characteristics for which the historical loss experience was observed. The Company utilizes a one year reasonable and supportable forecast period. The Company’s methodologies revert back to historical loss information on a straight-line basis over four quarters after the reasonable and supportable forecast period.

During the six months ended June 30, 2026, the allowance for credit losses increased due to organic loan growth, the current economic forecast and a change in the mix of loans. The allowance for credit losses was determined at June 30, 2026 using the Moody's baseline scenario economic forecast and the downside 75th percentile S-2 scenario weighted equally at 50%. The allowance for credit losses was determined at December 31, 2025 using two economic forecasts from Moody's, the baseline scenario and the downside 75th percentile S-2 scenario, which were equally weighted at 50%. The current forecast reflects, among other things, an increase in unemployment and commercial real estate vacancies, partially offset by improvements in home and commercial real estate price indices, compared with the forecast at December 31, 2025.
The following tables detail activity and end of period balances in the allowance for credit losses by portfolio segment for the periods indicated. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories:

Three Months Ended June 30, 2026
(dollars in thousands)Commercial and IndustrialConsumerMortgage WarehouseMunicipalPremium FinanceReal Estate – Construction and Development
Balance, March 31, 2026$89,931 $8,518 $2,506 $55 $1,761 $54,229 
Provision for loan losses8,169 1,404 237 — 471 3,081 
Loans charged off(8,657)(4,042)— — (2,253)— 
Recoveries of loans previously charged off3,117 373 — — 2,003 2 
Balance, June 30, 2026$92,560 $6,253 $2,743 $55 $1,982 $57,312 
Real Estate –
Commercial and
Farmland		Real Estate –
Residential		Total
Balance, March 31, 2026$127,498 $70,184 $354,682 
Provision for loan losses7,084 (4,552)15,894 
Loans charged off(1,561)(103)(16,616)
Recoveries of loans previously charged off24 34 5,553 
Balance, June 30, 2026$133,045 $65,563 $359,513 
Six Months Ended June 30, 2026
(dollars in thousands)Commercial
and Industrial		ConsumerMortgage WarehouseMunicipalPremium FinanceReal Estate – Construction and Development
Balance, December 31, 2025$88,242 $11,503 $2,356 $57 $892 $52,432 
Provision for loan losses16,712 2,708 387 (2)1,576 4,878 
Loans charged off(19,245)(8,857)— — (4,315)— 
Recoveries of loans previously charged off6,851 899 — — 3,829 2 
Balance, June 30, 2026$92,560 $6,253 $2,743 $55 $1,982 $57,312 
Real Estate –
Commercial and
Farmland		Real Estate –
Residential		Total
Balance, December 31, 2025$128,454 $64,205 $348,141 
Provision for loan losses6,100 1,430 33,789 
Loans charged off(1,561)(165)(34,143)
Recoveries of loans previously charged off52 93 11,726 
Balance, June 30, 2026$133,045 $65,563 $359,513 
Three Months Ended June 30, 2025
(dollars in thousands)Commercial and IndustrialConsumerMortgage WarehouseMunicipalPremium FinanceReal Estate – Construction and Development
Balance, March 31, 2025$82,621 $6,145 $1,824 $57 $682 $69,086 
Provision for loan losses12,345 1,090 456 1 567 (21,785)
Loans charged off(10,517)(913)— — (2,719)— 
Recoveries of loans previously charged off4,536 251 — — 2,253 5 
Balance, June 30, 2025$88,985 $6,573 $2,280 $58 $783 $47,306 
Real Estate –
Commercial and
Farmland		Real Estate –
Residential		Total
Balance, March 31, 2025$118,392 $66,748 $345,555 
Provision for loan losses9,335 1,101 3,110 
Loans charged off— (77)(14,226)
Recoveries of loans previously charged off67 16 7,128 
Balance, June 30, 2025$127,794 $67,788 $341,567 
Six Months Ended June 30, 2025
(dollars in thousands)Commercial
and Industrial		ConsumerMortgage WarehouseMunicipalPremium FinanceReal Estate – Construction and Development
Balance, December 31, 2024$87,242 $7,327 $2,262 $58 $736 $60,421 
Provision for loan losses15,733 553 18 — 762 (13,124)
Loans charged off(22,376)(1,853)— — (5,048)— 
Recoveries of loans previously charged off8,386 546 — — 4,333 9 
Balance, June 30, 2025$88,985 $6,573 $2,280 $58 $783 $47,306 
Real Estate –
Commercial and
Farmland		Real Estate –
Residential		Total
Balance, December 31, 2024$118,377 $61,661 $338,084 
Provision for loan losses9,315 6,372 19,629 
Loans charged off— (333)(29,610)
Recoveries of loans previously charged off102 88 13,464 
Balance, June 30, 2025$127,794 $67,788 $341,567 

Modifications to Borrowers Experiencing Financial Difficulty

The Company periodically provides modifications to borrowers experiencing financial difficulty. Loan modifications, renewals, and refinancings where borrowers are experiencing financial difficulty are evaluated for classification as a modification to borrowers experiencing financial difficulty. To be classified as such, the modifications must be in the form of payment deferrals, term extensions, interest rate reductions, principal forgiveness or combinations of modification types. The determination of whether the borrower is experiencing financial difficulty is made on the date of the modification. When principal forgiveness is provided, the amount of principal forgiveness is charged off against the allowance for credit losses with a corresponding reduction in the amortized cost basis of the loan.
The following table shows the amortized cost basis of the loans modified to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of concession granted during the three and six months ended June 30, 2026 and 2025:

Three Months Ended June 30, 2026
(dollars in thousands)Payment DeferralTerm ExtensionCombination Payment Deferral and Rate ReductionCombination Payment Deferral and Term ExtensionCombination of Term Extension and Rate ReductionTotalPercentage of Total Class of Financial Receivable
Real estate – commercial and farmland$6,936 $— $— $— $7,383 $14,319 0.2 %
Real estate – residential1,849 6,194 1,015 283 1,109 10,450 0.2 %
Total$8,785 $6,194 $1,015 $283 $8,492 $24,769 0.1 %
Six Months Ended June 30, 2026
(dollars in thousands)Payment DeferralTerm ExtensionCombination Payment Deferral and Rate ReductionCombination Payment Deferral and Term ExtensionCombination of Term Extension and Rate ReductionTotalPercentage of Total Class of Financial Receivable
Real estate – commercial and farmland$6,936 $— $— $— $7,383 $14,319 0.2 %
Real estate – residential2,329 8,577 1,015 283 1,109 13,313 0.3 %
Total$9,265 $8,577 $1,015 $283 $8,492 $27,632 0.1 %
Three Months Ended June 30, 2025
(dollars in thousands)Payment DeferralTerm ExtensionCombination Payment Deferral and Rate Reduction        Combination Payment Deferral and Term ExtensionCombination of Term Extension and Rate ReductionTotalPercentage of Total Class of Financial Receivable
Commercial and industrial$— $5,871 $— $— $— $5,871 0.2 %
Real estate – commercial and farmland— 700 — 329 — 1,029 — %
Real estate – residential548 2,199 506 — 615 3,868 0.1 %
Total$548 $8,770 $506 $329 $615 $10,768 0.1 %
Six Months Ended June 30, 2025
(dollars in thousands)Payment DeferralTerm ExtensionCombination Payment Deferral and Rate ReductionCombination Payment Deferral and Term ExtensionCombination of Term Extension and Rate ReductionTotalPercentage of Total Class of Financial Receivable
Commercial and industrial$— $5,871 $— $— $— $5,871 0.2 %
Real estate – commercial and farmland2,357 700 — 9,690 — 12,747 0.1 %
Real estate – residential1,111 3,533 506 — 1,298 6,448 0.1 %
Total$3,468 $10,104 $506 $9,690 $1,298 $25,066 0.1 %


The Company had unfunded commitments to borrowers experiencing financial difficulty for which the Company has modified their loans of $2.1 million and $2.0 million at June 30, 2026 and December 31, 2025, respectively.
The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty during the three and six months ended June 30, 2026 and 2025, respectively:

Three Months Ended June 30, 2026
Loan TypeFinancial Effect
Payment Deferral
Real estate – commercial and farmland
Payments were deferred for 15 months
Real estate – residential
Payments were deferred for 7 months
Term Extension
Real estate – residential
Maturity dates were extended for a weighted average of 65 months
Combination of Payment Deferral and Term Extension
Real estate – residential
Maturity dates were extended for a weighted average 7 months and payments were deferred for 7 months
Combination of Payment Deferral and Rate Reduction
Real estate – residential
Payments were deferred for 9 months and rate was reduced by a weighted average 1.69%
Combination of Term Extension and Rate Reduction
Real estate – commercial and farmland
Maturity dates were extended for a weighted average 7 months months and rate was reduced by a weighted average 2.00%
Real estate – residential
Maturity dates were extended for a weighted average 57 months and rate was reduced by a weighted average 2.13%

Six Months Ended June 30, 2026
Loan TypeFinancial Effect
Payment Deferral
Real estate – commercial and farmland
Payments were deferred for a weighted average of 15 months
Real estate – residential
Payments were deferred for a weighted average of 9 months
Term Extension
Real estate – residential
Maturity dates were extended for a weighted average of 70 months
Combination of Payment Deferral and Term Extension
Real estate – residential
Maturity dates were extended for a weighted average 7 months and payments were deferred for 7 months
Combination of Payment Deferral and Rate Reduction
Real estate – residential
Payments were deferred for 9 months and rate was reduced by a weighted average 1.69%
Combination of Term Extension and Rate Reduction
Real estate – commercial and farmland
Maturity dates were extended for a weighted average 7 months and rate was reduced by a weighted average 2.00%.
Real estate – residential
Maturity dates were extended for a weighted average 57 months and rate was reduced by a weighted average 2.13%
Three Months Ended June 30, 2025
Loan TypeFinancial Effect
Payment Deferral
Real estate – residential
Payments were deferred for eight months
Term Extension
Commercial and industrial
Maturity dates were extended for a weighted average of 13 months
Real estate – commercial and farmland
Maturity dates were extended for a weighted average of nine months
Real estate – residential
Maturity dates were extended for a weighted average of 95 months
Combination Payment Deferral and Term Extension
Real estate – commercial and farmland
Maturity dates were extended for a weighted average of nine months and payments were deferred for nine months
Combination Term Extension and Rate Reduction
Real estate – residential
Maturity dates were extended for a weighted average of seven months and rate was reduced by a weighted average 1.50%
Combination Payment Deferral and Rate Reduction
Real estate – residential
Payments were deferred for 10 months and rate was reduced by a weighted average 0.43%

Six Months Ended June 30, 2025
Loan TypeFinancial Effect
Payment Deferral
Real estate – commercial and farmland
Payments were deferred for a weighted average of nine months
Real estate – residential
Payments were deferred for a weighted average of nine months
Term Extension
Commercial and industrial
Maturity dates were extended for a weighted average of 13 months
Real estate – commercial and farmland
Maturity dates were extended for a weighted average of nine months
Real estate – residential
Maturity dates were extended for a weighted average of 90 months
Combination Payment Deferral and Term Extension
Real estate – commercial and farmland
Maturity dates were extended for a weighted average of three months and payments were deferred for 12 months
Combination Term Extension and Rate Reduction
Real estate – residential
Maturity dates were extended for a weighted average of 37 months and rate was reduced by a weighted average 0.68%
Combination Payment Deferral and Rate Reduction
Real estate – residential
Payments were deferred for seven months and rate was reduced by a weighted average 1.50%
The Company monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table depicts the performance of loans that have been modified in the last 12 months:

As of June 30, 2026

(dollars in thousands)
Current30-59
Days Past Due		60-89
Days Past Due		90 or More Days Past DueTotal
Commercial and industrial$1,527 $— $— $— $1,527 
Real estate – commercial and farmland21,306 — — 86 21,392 
Real estate – residential20,043 2,017 844 5,273 28,177 
Total$42,876 $2,017 $844 $5,359 $51,096 

As of June 30, 2025

(dollars in thousands)
Current30-59
Days Past Due		60-89
Days Past Due		90 or More Days Past DueTotal
Commercial and industrial$6,426 $— $— $— $6,426 
Real estate – commercial and farmland13,332 — — — 13,332 
Real estate – residential8,247 3,141 3,831 2,883 18,102 
Total$28,005 $3,141 $3,831 $2,883 $37,860 


The following table provides the amortized cost basis of financing receivables that had a payment default during the three months ended June 30, 2026 and were modified in the 12 months before default to borrowers experiencing financial difficulty:

(dollars in thousands)Term ExtensionPayment DeferralCombination of Payment Deferral and Term ExtensionCombination of Term Extension and Rate ReductionCombination Payment Deferral and Rate ReductionTotal
Real estate – residential$3,665 $621 $283 $396 $508 $5,473 
Total$3,665 $621 $283 $396 $508 $5,473 

The following table provides the amortized cost basis of financing receivables that had a payment default during the six months ended June 30, 2026 and were modified in the 12 months before default to borrowers experiencing financial difficulty.

(dollars in thousands)Term ExtensionPayment DeferralCombination of Payment Deferral and Term ExtensionCombination of Term Extension and Rate ReductionCombination Payment Deferral and Rate ReductionTotal
Real estate – residential$3,665 $1,243 $283 $397 $508 $6,096 
Total$3,665 $1,243 $283 $397 $508 $6,096 


The following table provides the amortized cost basis of financing receivables that had a payment default during the three months ended June 30, 2025 and were modified in the 12 months before default to borrowers experiencing financial difficulty:

(dollars in thousands)Interest Rate ReductionTerm ExtensionPayment DeferralCombination of Term Extension and Rate ReductionCombination of Payment Deferral and Rate ReductionTotal
Real estate – residential$499 $4,202 $563 $4,086 $506 $9,856 
Total$499 $4,202 $563 $4,086 $506 $9,856 
The following table provides the amortized cost basis of financing receivables that had a payment default during six months ended June 30, 2025 and were modified in the 12 months before default to borrowers experiencing financial difficulty.

(dollars in thousands)Interest Rate ReductionTerm ExtensionPayment DeferralCombination of Term Extension and Rate ReductionCombination of Payment Deferral and Rate ReductionTotal
Real estate – residential$499 $4,862 $563 $4,086 $506 $10,516 
Total$499 $4,862 $563 $4,086 $506 $10,516