| Allowance for Credit Losses, Credit Quality and Other |
Allowance for Credit Losses, Credit Quality and Other The Company uses the discounted cash flow ("DCF") method to estimate expected losses for the Company’s non-acquired loan pools. These pools are as follows: construction & land development; other commercial real estate; residential real estate; commercial & industrial; and consumer & other. The loan portfolio pools were selected in order to generally align with the loan categories specified in the quarterly call reports required to be filed with the Federal Financial Institutions Examination Council. For each of these loan pools, the Company generates cash flow projections at the instrument level wherein payment expectations are adjusted for estimated prepayment speed, curtailments, time to recovery, probability of default, and loss given default. The modeling of expected prepayment speeds, curtailment rates, and time to recovery are based on historical internal data. The Company uses regression analysis of historical internal and peer data to determine suitable loss drivers to utilize when modeling lifetime probability of default and loss given default. This analysis also determines how expected probability of default and loss given default will react to forecasted levels of the loss drivers. For all DCF models, management has determined that four quarters represents a reasonable and supportable forecast period and reverts to a historical loss rate over four quarters on a straight-line basis. Management leverages economic projections from a reputable and independent third party to inform its loss driver forecasts over the four-quarter forecast period. Other internal and external indicators of economic forecasts are also considered by management when developing the forecast metrics. The combination of adjustments for credit expectations (default and loss) and time expectations (prepayment, curtailment, and time to recovery) produces an expected cash flow stream at the instrument level. Instrument effective yield is calculated, net of the impacts of prepayment assumptions, and the instrument expected cash flows are then discounted at that effective yield to produce an instrument-level net present value of expected cash flows ("NPV"). An allowance for credit loss is established for the difference between the instrument’s NPV and amortized cost basis. Purchased loans that have experienced more-than-insignificant credit deterioration since origination are classified as PCD loans. The Company estimates expected credit losses on PCD loans using methodologies consistent with its allowance for credit losses framework, including individual evaluations or collective assessments, as appropriate. PCD loans are accounted for using the gross-up approach prescribed by ASC 326. Under this approach, an allowance for credit losses is established as of the acquisition date and added to the purchase price of the acquired loan to establish its initial amortized cost basis. The difference between the initial amortized cost basis and the unpaid principal balance of the loan represents a noncredit discount or premium, which is accreted or amortized into interest income over the remaining life of the loan using the effective interest method. Subsequent changes in expected credit losses are recognized through the provision for credit losses and reflected in the allowance for credit losses. Effective April 1, 2026, the Company early adopted ASU 2025‑08, Financial Instruments—Credit Losses (Topic 326): Purchased Loans. Under ASU 2025‑08, acquired loans that are not classified as PCD loans and otherwise meet the definition of PSLs are accounted for using the gross-up approach. Accordingly, an allowance for credit losses is recognized as of the acquisition date with a corresponding adjustment to the amortized cost basis of the acquired loans, and no day-one provision for credit losses is recognized. The amendments are applied prospectively to qualifying loans acquired on or after the adoption date, and prior-period amounts have not been adjusted. Following the adoption of ASU 2025‑08, the Company separately identifies and segments qualifying PSLs within its allowance for credit losses framework. PSL segments are aligned with the Company's existing portfolio segmentation structure and generally utilize the same credit risk assumptions, forecasting processes, and qualitative adjustment framework applied to originated loans. In accordance with ASC 326, expected credit losses for PSLs are measured using an expected loss methodology based on the unpaid principal balance of the acquired loans. While the Company's legacy loan portfolio is primarily evaluated using a discounted cash flow methodology based on amortized cost, PSLs are measured based on unpaid principal balance in accordance with ASC 326 and the requirements of ASU 2025‑08. Management qualitatively adjusts model results for risk factors ("Q-Factors") that are not considered within our modeling processes but are, nonetheless, relevant in assessing the expected credit losses within our loan pools. These Q-Factors and other qualitative adjustments may increase or decrease management's estimate of expected credit losses by a calculated percentage or amount based upon the estimated level of risk. The various risks that may be considered in making Q-Factor and other qualitative adjustments include, among other things, the impact of (i) changes in lending policies, procedures and strategies; (ii) changes in nature and volume of the portfolio; (iii) staff experience; (iv) changes in volume and trends in classified loans, delinquencies and nonaccruals; (v) concentration risk; (vi) trends in underlying collateral values; (vii) external factors such as competition, legal and regulatory environment; (viii) changes in the quality of the loan review system; and (ix) economic conditions. Each year management evaluates the performance of the selected models used in the CECL calculation through backtesting. Based on the results of the testing, management determines if the various models produced accurate results compared to the actual losses incurred for the current economic environment. Management then determines if changes to the assumptions and economic factors would produce a stronger overall calculation that is more responsive to changes in economic conditions. The Company continues to use regression analysis to determine suitable loss drivers to utilize when modeling lifetime probability of default and loss given default for the changes in the economic factors for the loss driver segments. Based on this analysis, management determined that changes to some of the economic factors for the loss driver segments, along with other model improvements and updates, were necessary, and updated models were implemented beginning with the March 31, 2026 allowance for credit losses calculation. The identified loss drivers by segment are included below as of both June 30, 2026 and December 31, 2025: | | | | | | | | | June 30, 2026 | | Loss Driver Segment | Call Report Segment(s) | Modeled Economic Factors | | 1-4 Family Construction | 1a1 | National Unemployment (%) & Housing Price Index (%) | | All Other Construction | 1a2 | National Unemployment (%) & Gross Domestic Product (%) | | Farmland | 1b | National Unemployment (%) & Gross Domestic Product (%) | | Residential 1-4 Family | 1c1, 1c2a, 1c2b | National Unemployment (%) & Housing Price Index (%) | | Multifamily | 1d | Gross Domestic Product (%) & Housing Price Index (%) | | Non-Farm/ Non-Residential CRE | 1e1, 1e2 | National Unemployment (%) & Gross Domestic Product (%) | | Agriculture | 3 | National Unemployment (%) | | Commercial & Industrial, Non-Depository Financial Institutions, Purchase/Carry Securities, Leases, Other | 4a, 9a, 9b1, 9b2, 10, Other | National Unemployment (%) & National Retail Sales (%) | | Consumer Auto | 6c | National Unemployment (%) & National Retail Sales (%) | | Other Consumer | 6b, 6d | National Unemployment (%) & National Retail Sales (%) | | Other Consumer - SPF | 6d | National Unemployment (%) | | Obligations of States and Political Subdivisions | 8 | National Unemployment (%) & Gross Domestic Product (%) |
| | | | | | | | | December 31, 2025 | | Loss Driver Segment | Call Report Segment(s) | Modeled Economic Factors | | 1-4 Family Construction | 1a1 | National Unemployment (%) & Housing Price Index (%) | | All Other Construction | 1a2 | National Unemployment (%) & Gross Domestic Product (%) | | Farmland & Agriculture | 1b, 3 | National Unemployment (%) | | Residential 1-4 Family | 1c1, 1c2a, 1c2b | National Unemployment (%) & Housing Price Index (%) | | Multifamily | 1d | Rental Vacancy Rate (%) & Housing Price Index (%) | | Non-Farm/ Non-Residential CRE | 1e1, 1e2 | National Unemployment (%) & Gross Domestic Product (%) | | Commercial & Industrial, Non-Depository Financial Institutions, Purchase/Carry Securities, Leases, Other | 4a, 9a, 9b1, 9b2, 10, Other | National Unemployment (%) & National Retail Sales (%) | | Consumer Auto | 6c | National Unemployment (%) & National Retail Sales (%) | | Other Consumer | 6b, 6d | National Unemployment (%) & National Retail Sales (%) | | Other Consumer - SPF | 6d | National Unemployment (%) | | Obligations of States and Political Subdivisions | 8 | National Unemployment (%) & Gross Domestic Product (%) |
Construction/Land Development and Other Commercial Real Estate Loans. We originate non-farm and non-residential loans (primarily secured by commercial real estate), construction/land development loans, and agricultural loans, which are generally secured by real estate located in our market areas. Our commercial mortgage loans are generally collateralized by first liens on real estate and amortized (where defined) over a 15 to 30 year period with balloon payments due at the end of one to five years. These loans are generally underwritten by assessing cash flow (debt service coverage), primary and secondary source of repayment, the financial strength of the borrower as well as any guarantors, the strength of the tenant (if any), the borrower’s liquidity and leverage, management experience, ownership structure, economic conditions and industry specific trends and collateral. Generally, we will loan up to 85% of the value of improved property, 65% of the value of raw land and 75% of the value of land to be acquired and developed. A first lien on the property and assignment of lease is required if the collateral is rental property, with second lien positions considered on a case-by-case basis. Residential Real Estate Loans. We originate one to four family, residential mortgage loans generally secured by property located in our primary market areas. Residential real estate loans generally have a loan-to-value ratio of up to 90%. These loans are underwritten by giving consideration to many factors including the borrower’s ability to pay, stability of employment or source of income, debt-to-income ratio, credit history and loan-to-value ratio. Commercial and Industrial Loans. Commercial and industrial loans are made for a variety of business purposes, including working capital, inventory, equipment and capital expansion. The terms for commercial loans are generally one to seven years. Commercial loan applications must be supported by current financial information on the borrower and, where appropriate, by adequate collateral. Commercial loans are generally underwritten by addressing cash flow (debt service coverage), primary and secondary sources of repayment, the financial strength of the borrower as well as any guarantors, the borrower’s liquidity and leverage, management experience, ownership structure, economic conditions and industry specific trends and collateral. The loan to value ratio depends on the type of collateral. Generally, accounts receivable are financed at between 50% and 80% of accounts receivable less than 60 days past due. Inventory financing will range between 50% and 80% (with no work in process) depending on the borrower and nature of inventory. We require a first lien position for those loans. Consumer & Other Loans. Our consumer & other loans are primarily composed of loans to finance United States Coast Guard registered high-end sail and power boats. The performance of consumer & other loans will be affected by the local and regional economies as well as the rates of personal bankruptcies, job loss, divorce and other individual changes in circumstance. Off-Balance Sheet Credit Exposures. The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit loss on off-balance sheet credit exposures is adjusted as a provision for credit loss expense. The Company estimates expected credit losses for its off-balance-sheet credit exposures using methodologies consistent with those applied to the related loan portfolio segments within its allowance for credit losses framework. Off-balance-sheet credit exposures generally exhibit risk characteristics similar to the Company's on-balance-sheet loan portfolios and are evaluated using comparable credit risk assumptions, forecasting processes, and qualitative adjustment factors. The estimate of expected credit losses incorporates both the probability that funding will occur and the expected losses associated with amounts expected to be funded. During the three months ended June 30, 2026, the Company recorded $5.2 million in provision for credit losses on loans, and the Company recorded no credit losses on unfunded commitments as the current level of the reserve was considered adequate. During the six months ended June 30, 2026, the Company recorded $6.7 million in provision for credit losses on loans, and the Company recovered $1.0 million in credit losses on unfunded commitments. During the three and six months ended June 30, 2025, the Company recorded $3.0 million in provision for credit losses on loans. In addition, management determined that a provision was not necessary for the unfunded commitments as the current level of the reserve was considered adequate. The Company completed the acquisition of MCBI on April 1, 2026. In connection with the acquisition, the Company acquired approximately $1.50 billion in loans and recorded $30.8 million in net loan discounts. Pursuant to ASC 326 and ASU 2025‑08, the Company established an acquisition-date allowance for credit losses of $31.3 million using the gross-up approach, consisting of $7.6 million related to PCD loans and $23.7 million related to PSLs. The acquisition-date allowance was recorded as an adjustment to the amortized cost basis of the acquired loans and did not result in provision for credit losses expense upon acquisition. The following table presents the activity in the allowance for credit losses for the three and six months ended June 30, 2026: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2026 | | Construction/
Land
Development | | Other
Commercial
Real Estate | | Residential
Real Estate | | Commercial
& Industrial | | Consumer
& Other | | Total | | (In thousands) | | Allowance for credit losses: | | | | | | | | | | | | | Beginning balance | $ | 49,377 | | | $ | 90,550 | | | $ | 71,983 | | | $ | 57,171 | | | $ | 28,553 | | | $ | 297,634 | | | Allowance for credit losses on acquired loans - MCBI | 1,299 | | | 11,589 | | | 14,008 | | | 4,198 | | | 239 | | | 31,333 | | | Loans charged off | — | | | (2,214) | | | (224) | | | (1,419) | | | (2,663) | | | (6,520) | | Recoveries of loans previously charged off | 25 | | | 47 | | | 190 | | | 158 | | | 302 | | | 722 | | Net loans recovered (charged off) | 25 | | | (2,167) | | | (34) | | | (1,261) | | | (2,361) | | | (5,798) | | | | | | | | | | | | | | | Provision for credit losses | 805 | | | 472 | | | 193 | | | (490) | | | 4,220 | | | 5,200 | | | Balance, June 30 | $ | 51,506 | | | $ | 100,444 | | | $ | 86,150 | | | $ | 59,618 | | | $ | 30,651 | | | $ | 328,369 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2026 | | Construction/
Land
Development | | Other
Commercial
Real Estate | | Residential
Real Estate | | Commercial
& Industrial | | Consumer
& Other | | Total | | (In thousands) | | Allowance for credit losses: | | | | | | | | | | | | | Beginning balance | $ | 48,023 | | | $ | 77,220 | | | $ | 72,692 | | | $ | 65,932 | | | $ | 33,716 | | | $ | 297,583 | | | Allowance for credit losses on acquired loans - MCBI | 1,299 | | | 11,589 | | | 14,008 | | | 4,198 | | | 239 | | | 31,333 | | | Loans charged off | — | | | (2,672) | | | (617) | | | (2,745) | | | (3,335) | | | (9,369) | | | Recoveries of loans previously charged off | 45 | | | 664 | | | 208 | | | 349 | | | 856 | | | 2,122 | | | Net loans recovered (charged off) | 45 | | | (2,008) | | | (409) | | | (2,396) | | | (2,479) | | | (7,247) | | | | | | | | | | | | | | | Provision for credit losses | 2,139 | | | 13,643 | | | (141) | | | (8,116) | | | (825) | | | 6,700 | | | Balance, June 30 | $ | 51,506 | | | $ | 100,444 | | | $ | 86,150 | | | $ | 59,618 | | | $ | 30,651 | | | $ | 328,369 | |
During the first quarter of 2026, the Company implemented updated allowance for credit loss models as part of the annual model review and challenge process. The allowance calculation called for a higher level of reserves for the CRE portfolio, which was largely offset by a corresponding reduction in reserves for the commercial and industrial portfolio as well as the consumer portfolio. The following table presents the activity in the allowance for credit losses for the three and six months ended June 30, 2025 and the year ended December 31, 2025: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2025 | | Construction/
Land
Development | | Other
Commercial
Real Estate | | Residential
Real Estate | | Commercial
& Industrial | | Consumer
& Other | | Total | | (In thousands) | | Allowance for credit losses: | | | | | | | | | | | | | Beginning balance | $ | 48,176 | | | $ | 86,285 | | | $ | 53,408 | | | $ | 60,122 | | | $ | 31,953 | | | $ | 279,944 | | | | | | | | | | | | | | | Loans charged off | (70) | | | (19) | | | (54) | | | (2,369) | | | (1,559) | | | (4,071) | | | Recoveries of loans previously charged off | 416 | | | 1,629 | | | 12 | | | 615 | | | 324 | | | 2,996 | | | Net loans recovered (charged off) | 346 | | | 1,610 | | | (42) | | | (1,754) | | | (1,235) | | | (1,075) | | | | | | | | | | | | | | | Provision for credit losses | (1,781) | | | (3,616) | | | 4,606 | | | 2,213 | | | 1,578 | | | 3,000 | | | Balance, June 30 | $ | 46,741 | | | $ | 84,279 | | | $ | 57,972 | | | $ | 60,581 | | | $ | 32,296 | | | $ | 281,869 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2025 and Year Ended December 31, 2025 | | Construction/
Land
Development | | Other
Commercial
Real Estate | | Residential
Real Estate | | Commercial & Industrial | | Consumer
& Other | | Total | | (In thousands) | | Allowance for credit losses: | | | | | | | | | | | | | Beginning balance | $ | 52,271 | | | $ | 91,315 | | | $ | 50,835 | | | $ | 49,621 | | | $ | 31,838 | | | $ | 275,880 | | | Loans charged off | (70) | | | (2,319) | | | (129) | | | (2,530) | | | (2,481) | | | (7,529) | | Recoveries of loans previously charged off | 541 | | | 7,789 | | | 63 | | | 1,573 | | | 552 | | | 10,518 | | Net loans (charged off) recovered | 471 | | | 5,470 | | | (66) | | | (957) | | | (1,929) | | | 2,989 | | | | | | | | | | | | | | | Provision for credit loss - loans | (6,001) | | | (12,506) | | | 7,203 | | | 11,917 | | | 2,387 | | | 3,000 | | Balance, June 30 | 46,741 | | | 84,279 | | | 57,972 | | | 60,581 | | | 32,296 | | | 281,869 | | | Loans charged off | — | | | (715) | | | (502) | | | (3,847) | | | (2,650) | | | (7,714) | | Recoveries of loans previously charged off | 35 | | | 911 | | | 160 | | | 805 | | | 417 | | | 2,328 | | Net loans (charged off) recovered | 35 | | | 196 | | | (342) | | | (3,042) | | | (2,233) | | | (5,386) | | | Provision for credit loss - loans | 1,247 | | | (7,255) | | | 15,062 | | | 8,393 | | | 3,653 | | | 21,100 | | Balance, December 31 | $ | 48,023 | | | $ | 77,220 | | | $ | 72,692 | | | $ | 65,932 | | | $ | 33,716 | | | $ | 297,583 | |
The following table presents the amortized cost basis of loans on nonaccrual status and loans past due over 90 days still accruing as of June 30, 2026 and December 31, 2025: | | | | | | | | | | | | | | | | | | | June 30, 2026 | | Nonaccrual | | Nonaccrual
with Reserve | | Loans Past Due
Over 90 Days
Still Accruing | | (In thousands) | | Real estate: | | | | | | | Commercial real estate loans | | | | | | | Non-farm/non-residential | $ | 56,071 | | | $ | 8,899 | | | $ | 491 | | | Construction/land development | 8,179 | | | — | | | — | | | Agricultural | 1,670 | | | — | | | — | | | Residential real estate loans | | | | | | | Residential 1-4 family | 26,255 | | | — | | | 1,276 | | | Multifamily residential | 12,391 | | | 10,368 | | | — | | | Total real estate | 104,566 | | | 19,267 | | | 1,767 | | | Consumer | 12,138 | | | 4,981 | | | 16 | | | Commercial and industrial | 65,227 | | | — | | | 331 | | | Agricultural & other | 1,268 | | | — | | | 12 | | | Total | $ | 183,199 | | | $ | 24,248 | | | $ | 2,126 | |
| | | | | | | | | | | | | | | | | | | December 31, 2025 | | Nonaccrual | | Nonaccrual
with Reserve | | Loans Past Due
Over 90 Days
Still Accruing | | (In thousands) | | Real estate: | | | | | | | Commercial real estate loans | | | | | | | Non-farm/non-residential | $ | 21,685 | | | $ | 14,752 | | | $ | — | | | Construction/land development | 5,444 | | | — | | | 405 | | | Agricultural | 489 | | | — | | | — | | | Residential real estate loans | | | | | | | Residential 1-4 family | 24,149 | | | — | | | 2,321 | | | Multifamily residential | 10,925 | | | 10,113 | | | — | | | Total real estate | 62,692 | | | 24,865 | | | 2,726 | | | Consumer | 10,326 | | | 4,981 | | | 3,290 | | | Commercial and industrial | 3,760 | | | — | | | 964 | | | Agricultural & other | 1,224 | | | — | | | — | | | Total | $ | 78,002 | | | $ | 29,846 | | | $ | 6,980 | |
The Company had $183.2 million and $78.0 million in nonaccrual loans as of June 30, 2026 and December 31, 2025, respectively. In addition, the Company had $2.1 million and $7.0 million in loans past due 90 days or more and still accruing as of June 30, 2026 and December 31, 2025, respectively. The Company had $24.2 million and $29.8 million in nonaccrual loans with a specific reserve as of June 30, 2026 and December 31, 2025, respectively. Interest income recognized on the non-accrual loans for the periods ended June 30, 2026 and June 30, 2025 was considered immaterial. The following table presents the amortized cost basis of impaired loans (which includes loans individually analyzed for credit losses for which a specific reserve has been recorded, non-accrual loans, loans past due 90 days or more and restructured loans made to borrowers experiencing financial difficulty) by class of loans as of June 30, 2026 and December 31, 2025: | | | | | | | | | | | | | | | | | | | June 30, 2026 | | Commercial
Real Estate | | Residential
Real Estate | | Other | | (In thousands) | | Real estate: | | | | | | | Commercial real estate loans | | | | | | | Non-farm/non-residential | $ | 91,536 | | | $ | — | | | $ | — | | | Construction/land development | 8,179 | | | — | | | — | | | Agricultural | 1,670 | | | — | | | — | | | Residential real estate loans | | | | | | | Residential 1-4 family | — | | | 30,681 | | | — | | | Multifamily residential | — | | | 12,391 | | | — | | | Total real estate | 101,385 | | | 43,072 | | | — | | | Consumer | — | | | — | | | 12,153 | | | Commercial and industrial | — | | | — | | | 65,612 | | | Agricultural & other | — | | | — | | | 1,280 | | | Total | $ | 101,385 | | | $ | 43,072 | | | $ | 79,045 | |
| | | | | | | | | | | | | | | | | | | December 31, 2025 | | Commercial
Real Estate | | Residential
Real Estate | | Other | | (In thousands) | | Real estate: | | | | | | | Commercial real estate loans | | | | | | | Non-farm/non-residential | $ | 93,550 | | | $ | — | | | $ | — | | | Construction/land development | 5,849 | | | — | | | — | | | Agricultural | 489 | | | — | | | — | | | Residential real estate loans | | | | | | | Residential 1-4 family | — | | | 29,402 | | | — | | | Multifamily residential | — | | | 10,925 | | | — | | | Total real estate | 99,888 | | | 40,327 | | | — | | | Consumer | — | | | — | | | 13,616 | | | Commercial and industrial | — | | | — | | | 64,367 | | | Agricultural & other | — | | | — | | | 1,224 | | | Total | $ | 99,888 | | | $ | 40,327 | | | $ | 79,207 | |
The Company had $223.5 million and $219.4 million in impaired loans for the periods ended June 30, 2026 and December 31, 2025, respectively. Interest recognized on impaired loans during the three and six months ended June 30, 2026 was approximately $553,000 and $1.1 million. Interest recognized on impaired loans during the three and six months ended June 30, 2025 was approximately $3.0 million and $6.0 million. The amount of interest recognized on impaired loans on the cash basis is not materially different than the accrual basis. The following is an aging analysis for loans receivable as of June 30, 2026 and December 31, 2025: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | Loans
Past Due
30-59 Days | | Loans
Past Due
60-89 Days | | Loans
Past Due
90 Days
or More | | Total
Past Due | | Current
Loans | | Total
Loans
Receivable | | Accruing
Loans
Past Due
90 Days
or More | | (In thousands) | | Real estate: | | | | | | | | | | | | | | | Commercial real estate loans | | | | | | | | | | | | | | | Non-farm/non-residential | $ | 11,221 | | | $ | 620 | | | $ | 56,562 | | | $ | 68,403 | | | $ | 5,853,426 | | | $ | 5,921,829 | | | $ | 491 | | | Construction/land development | 1,403 | | | 116 | | | 8,179 | | | 9,698 | | | 2,770,418 | | | 2,780,116 | | | — | | | Agricultural | 134 | | | — | | | 1,670 | | | 1,804 | | | 327,427 | | | 329,231 | | | — | | | Residential real estate loans | | | | | | | | | | | | | | | Residential 1-4 family | 2,779 | | | 4,576 | | | 27,531 | | | 34,886 | | | 2,510,576 | | | 2,545,462 | | | 1,276 | | | Multifamily residential | 152 | | | — | | | 12,391 | | | 12,543 | | | 1,257,185 | | | 1,269,728 | | | — | | | Total real estate | 15,689 | | | 5,312 | | | 106,333 | | | 127,334 | | | 12,719,032 | | | 12,846,366 | | | 1,767 | | | Consumer | 3,383 | | | 88 | | | 12,154 | | | 15,625 | | | 1,262,383 | | | 1,278,008 | | | 16 | | | Commercial and industrial | 1,685 | | | 439 | | | 65,558 | | | 67,682 | | | 2,217,372 | | | 2,285,054 | | | 331 | | | Agricultural & other | 1,200 | | | 311 | | | 1,280 | | | 2,791 | | | 714,989 | | | 717,780 | | | 12 | | | Total | $ | 21,957 | | | $ | 6,150 | | | $ | 185,325 | | | $ | 213,432 | | | $ | 16,913,776 | | | $ | 17,127,208 | | | $ | 2,126 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | Loans
Past Due
30-59 Days | | Loans
Past Due
60-89 Days | | Loans
Past Due
90 Days
or More | | Total
Past Due | | Current
Loans | | Total
Loans
Receivable | | Accruing
Loans
Past Due
90 Days
or More | | (In thousands) | | Real estate: | | | | | | | | | | | | | | | Commercial real estate loans | | | | | | | | | | | | | | | Non-farm/non-residential | $ | 37,448 | | | $ | 4,723 | | | $ | 21,685 | | | $ | 63,856 | | | $ | 5,226,256 | | | $ | 5,290,112 | | | $ | — | | | Construction/land development | 207 | | | 7,208 | | | 5,849 | | | 13,264 | | | 2,713,729 | | | 2,726,993 | | | 405 | | | Agricultural | 99 | | | — | | | 489 | | | 588 | | | 331,824 | | | 332,412 | | | — | | | Residential real estate loans | | | | | | | | | | | | | | | Residential 1-4 family | 3,709 | | | 4,650 | | | 26,470 | | | 34,829 | | | 2,099,505 | | | 2,134,334 | | | 2,321 | | | Multifamily residential | — | | | — | | | 10,925 | | | 10,925 | | | 1,129,986 | | | 1,140,911 | | | — | | | Total real estate | 41,463 | | | 16,581 | | | 65,418 | | | 123,462 | | | 11,501,300 | | | 11,624,762 | | | 2,726 | | | Consumer | 1,251 | | | 210 | | | 13,616 | | | 15,077 | | | 1,238,669 | | | 1,253,746 | | | 3,290 | | | Commercial and industrial | 41,433 | | | 1,048 | | | 4,724 | | | 47,205 | | | 2,175,196 | | | 2,222,401 | | | 964 | | | Agricultural and other | 1,267 | | | 14 | | | 1,224 | | | 2,505 | | | 582,795 | | | 585,300 | | | — | | | Total | $ | 85,414 | | | $ | 17,853 | | | $ | 84,982 | | | $ | 188,249 | | | $ | 15,497,960 | | | $ | 15,686,209 | | | $ | 6,980 | |
Credit Quality Indicators. As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including trends related to (i) the risk rating of loans, (ii) the level of classified loans, (iii) net charge-offs, (iv) non-performing loans and (v) the general economic conditions in Arkansas, Florida, Texas, Alabama and New York. The Company utilizes a risk rating matrix to assign a risk rating to each of its loans. Loans are rated on a scale from 1 to 8. Descriptions of the general characteristics of the 8 risk ratings are as follows: •Risk rating 1 – Excellent. Loans in this category are to persons or entities of unquestionable financial strength, a highly liquid financial position, with collateral that is liquid and well margined. These borrowers have performed without question on past obligations, and the Bank expects their performance to continue. Internally generated cash flow covers current maturities of long-term debt by a substantial margin. Loans secured by bank certificates of deposit and savings accounts, with appropriate holds placed on the accounts, are to be rated in this category. •Risk rating 2 – Good. These are loans to persons or entities with strong financial condition and above-average liquidity that have previously satisfactorily handled their obligations with the Bank. Collateral securing the Bank’s debt is margined in accordance with policy guidelines. Internally generated cash flow covers current maturities of long-term debt more than adequately. Unsecured loans to individuals supported by strong financial statements and on which repayment is satisfactory may be included in this classification. •Risk rating 3 – Satisfactory. Loans to persons or entities with an average financial condition, adequate collateral margins, adequate cash flow to service long-term debt, and net worth comprised mainly of fixed assets are included in this category. These entities are minimally profitable now, with projections indicating continued profitability into the foreseeable future. Closely held corporations or businesses where a majority of the profits are withdrawn by the owners or paid in dividends are included in this rating category. Overall, these loans are basically sound. •Risk rating 4 – Watch. Borrowers who have marginal cash flow, marginal profitability or have experienced an unprofitable year and a declining financial condition characterize these loans. The borrower has in the past satisfactorily handled debts with the Bank, but in recent months has either been late, delinquent in making payments, or made sporadic payments. While the Bank continues to be adequately secured, margins have decreased or are decreasing, despite the borrower’s continued satisfactory condition. Other characteristics of borrowers in this class include inadequate credit information, weakness of financial statement and repayment capacity, but with collateral that appears to limit exposure. •Risk rating 5 – Other Loans Especially Mentioned ("OLEM"). A loan criticized as OLEM has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date. OLEM assets are not adversely classified and do not expose the institution to sufficient risk to warrant adverse classification. •Risk rating 6 – Substandard. A loan classified as substandard is inadequately protected by the sound worth and paying capacity of the borrower or the collateral pledged. Loss potential, while existing in the aggregate amount of substandard loans, does not have to exist in individual assets. •Risk rating 7 – Doubtful. A loan classified as doubtful has all the weaknesses inherent in a loan classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. These are poor quality loans in which neither the collateral, if any, nor the financial condition of the borrower presently ensure collectability in full in a reasonable period of time; in fact, there is permanent impairment in the collateral securing the loan. •Risk rating 8 – Loss. Assets classified as loss are considered uncollectible and of such little value that the continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather, it is not practical or desirable to defer writing off this basically worthless asset, even though partial recovery may occur in the future. This classification is based upon current facts, not probabilities. Assets classified as loss should be charged-off in the period in which they became uncollectible. Loans that do not share risk characteristics are evaluated on an individual basis. All loans over $2.0 million that are rated 5 – 8 are individually assessed for credit losses on a quarterly basis. For these loans, where the Company has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the financial asset to be provided substantially through the sale of the collateral, the allowance for credit losses is measured based on the difference between the fair value of the collateral, net of estimated costs to sell, and the amortized cost basis of the loan as of the measurement date. When repayment is expected to be from the operation of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the loan exceeds the present value of expected cash flows from the operation of the collateral. The allowance for credit losses may be zero if the fair value of the collateral, less estimated costs to sell, or present value of cash flows at the measurement date exceeds the amortized cost basis of the loan. Based on the most recent analysis performed, the risk category of loans by class of loans as of June 30, 2026 and December 31, 2025 is as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | Term Loans Amortized Cost Basis by Origination Year | | | | | | 2026 | | 2025 | | 2024 | | 2023 | | 2022 | | Prior | | Revolving Loans Amortized Cost Basis | | Total | | (In thousands) | | Real estate: | | | | | | | | | | | | | | | | | Commercial real estate loans | | | | | | | | | | | | | | | | | Non-farm/non-residential | | | | | | | | | | | | | | | | | Risk rating 1 | $ | 190 | | | $ | — | | | $ | 699 | | | $ | 3,824 | | | $ | 2,030 | | | $ | 14,613 | | | $ | 108 | | | $ | 21,464 | | | Risk rating 2 | 10,866 | | | 48,067 | | | 25,081 | | | 40,334 | | | 62,934 | | | 76,556 | | | 18,073 | | | 281,911 | | | Risk rating 3 | 446,317 | | | 563,553 | | | 294,534 | | | 320,476 | | | 587,111 | | | 1,157,671 | | | 191,405 | | | 3,561,067 | | | Risk rating 4 | 31,977 | | | 97,179 | | | 142,757 | | | 69,934 | | | 534,653 | | | 783,845 | | | 179,431 | | | 1,839,776 | | | Risk rating 5 | — | | | 234 | | | 633 | | | 431 | | | 13,718 | | | 18,603 | | | — | | | 33,619 | | | Risk rating 6 | 260 | | | 12,134 | | | 34,748 | | | 2,359 | | | 39,456 | | | 91,072 | | | 262 | | | 180,291 | | | Risk rating 7 | — | | | — | | | 254 | | | — | | | 3,447 | | | — | | | — | | | 3,701 | | | Risk rating 8 | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Total non-farm/non-residential | 489,610 | | | 721,167 | | | 498,706 | | | 437,358 | | | 1,243,349 | | | 2,142,360 | | | 389,279 | | | 5,921,829 | | | Construction/land development | | | | | | | | | | | | | | | | | Risk rating 1 | $ | 335 | | | $ | — | | | $ | 166 | | | $ | 896 | | | $ | — | | | $ | 138 | | | $ | — | | | $ | 1,535 | | | Risk rating 2 | 3,319 | | | 7,762 | | | 8,347 | | | 126 | | | 7,357 | | | 2,470 | | | — | | | 29,381 | | | Risk rating 3 | 290,858 | | | 883,440 | | | 535,918 | | | 60,756 | | | 104,313 | | | 64,881 | | | 113,118 | | | 2,053,284 | | | Risk rating 4 | 104,358 | | | 114,624 | | | 159,893 | | | 120,273 | | | 35,868 | | | 25,240 | | | 101,171 | | | 661,427 | | | Risk rating 5 | — | | | — | | | 7,566 | | | 2,992 | | | 134 | | | 391 | | | — | | | 11,083 | | | Risk rating 6 | — | | | 139 | | | 7,193 | | | — | | | 15,128 | | | 916 | | | 30 | | | 23,406 | | | Risk rating 7 | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Risk rating 8 | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Total construction/land development | 398,870 | | | 1,005,965 | | | 719,083 | | | 185,043 | | | 162,800 | | | 94,036 | | | 214,319 | | | 2,780,116 | | | Agricultural | | | | | | | | | | | | | | | | | Risk rating 1 | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 260 | | | $ | 100 | | | $ | 360 | | | Risk rating 2 | 350 | | | 509 | | | — | | | 219 | | | 452 | | | 1,503 | | | — | | | 3,033 | | | Risk rating 3 | 22,528 | | | 32,231 | | | 17,104 | | | 15,301 | | | 19,254 | | | 36,960 | | | 51,933 | | | 195,311 | | | Risk rating 4 | 5,985 | | | 17,680 | | | 29,316 | | | 2,372 | | | 15,542 | | | 35,656 | | | 11,751 | | | 118,302 | | | Risk rating 5 | — | | | — | | | — | | | — | | | 4,187 | | | 100 | | | — | | | 4,287 | | | Risk rating 6 | — | | | — | | | 1,742 | | | 34 | | | 1,119 | | | 4,568 | | | 475 | | | 7,938 | | | Risk rating 7 | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Risk rating 8 | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Total agricultural | 28,863 | | | 50,420 | | | 48,162 | | | 17,926 | | | 40,554 | | | 79,047 | | | 64,259 | | | 329,231 | | | Total commercial real estate loans | $ | 917,343 | | | $ | 1,777,552 | | | $ | 1,265,951 | | | $ | 640,327 | | | $ | 1,446,703 | | | $ | 2,315,443 | | | $ | 667,857 | | | $ | 9,031,176 | | | Residential real estate loans | | | | | | | | | | | | | | | | | Residential 1-4 family | | | | | | | | | | | | | | | | | Risk rating 1 | $ | 2,211 | | | $ | 1,980 | | | $ | 3,994 | | | $ | 5,140 | | | $ | 22,002 | | | $ | 21,436 | | | $ | 10,469 | | | $ | 67,232 | | | Risk rating 2 | 7,295 | | | 19,925 | | | 10,720 | | | 10,231 | | | 63,315 | | | 55,010 | | | 37,402 | | | 203,898 | | | Risk rating 3 | 170,594 | | | 208,995 | | | 173,657 | | | 234,458 | | | 373,963 | | | 552,475 | | | 149,752 | | | 1,863,894 | | | Risk rating 4 | 8,176 | | | 21,440 | | | 37,098 | | | 13,047 | | | 51,288 | | | 166,364 | | | 73,159 | | | 370,572 | | | Risk rating 5 | — | | | 1,046 | | | — | | | 639 | | | 750 | | | 3,613 | | | 248 | | | 6,296 | | | Risk rating 6 | 1 | | | 1,001 | | | 2,102 | | | 4,503 | | | 7,287 | | | 18,281 | | | 32 | | | 33,207 | | | Risk rating 7 | — | | | — | | | — | | | — | | | — | | | — | | | 363 | | | 363 | | | Risk rating 8 | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Total residential 1-4 family | 188,277 | | | 254,387 | | | 227,571 | | | 268,018 | | | 518,605 | | | 817,179 | | | 271,425 | | | 2,545,462 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | Term Loans Amortized Cost Basis by Origination Year | | | | | | 2026 | | 2025 | | 2024 | | 2023 | | 2022 | | Prior | | Revolving Loans Amortized Cost Basis | | Total | | (In thousands) | | Multifamily residential | | | | | | | | | | | | | | | | | Risk rating 1 | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | Risk rating 2 | 11,837 | | | 2,639 | | | — | | | 10,850 | | | 1,770 | | | 8,758 | | | — | | | 35,854 | | | Risk rating 3 | 77,430 | | | 247,378 | | | 160,373 | | | 12,474 | | | 151,457 | | | 159,758 | | | 8,755 | | | 817,625 | | | Risk rating 4 | 4,676 | | | 890 | | | 514 | | | 123,799 | | | 195,062 | | | 33,932 | | | 25,608 | | | 384,481 | | | Risk rating 5 | — | | | — | | | — | | | — | | | — | | | 2,007 | | | — | | | 2,007 | | | Risk rating 6 | — | | | — | | | — | | | — | | | 28,500 | | | 963 | | | — | | | 29,463 | | | Risk rating 7 | — | | | — | | | — | | | — | | | — | | | 298 | | | — | | | 298 | | | Risk rating 8 | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Total multifamily residential | 93,943 | | | 250,907 | | | 160,887 | | | 147,123 | | | 376,789 | | | 205,716 | | | 34,363 | | | 1,269,728 | | | Total real estate | $ | 1,199,563 | | | $ | 2,282,846 | | | $ | 1,654,409 | | | $ | 1,055,468 | | | $ | 2,342,097 | | | $ | 3,338,338 | | | $ | 973,645 | | | $ | 12,846,366 | | | Consumer | | | | | | | | | | | | | | | | | Risk rating 1 | $ | 2,086 | | | $ | 5,900 | | | $ | 2,538 | | | $ | 1,041 | | | $ | 858 | | | $ | 1,564 | | | $ | 3,101 | | | $ | 17,088 | | | Risk rating 2 | 16 | | | 253 | | | — | | | 20 | | | 288 | | | 211 | | | 3,111 | | | 3,899 | | | Risk rating 3 | 134,181 | | | 257,542 | | | 195,781 | | | 129,108 | | | 137,714 | | | 355,067 | | | 2,954 | | | 1,212,347 | | | Risk rating 4 | 1,295 | | | 1,791 | | | 1,178 | | | 1,246 | | | 4,541 | | | 6,666 | | | 277 | | | 16,994 | | | Risk rating 5 | — | | | 16 | | | — | | | — | | | 463 | | | 149 | | | — | | | 628 | | | Risk rating 6 | 5 | | | 1,045 | | | 12,493 | | | 7,316 | | | 2,022 | | | 2,852 | | | 4 | | | 25,737 | | | Risk rating 7 | — | | | — | | | — | | | — | | | — | | | 177 | | | — | | | 177 | | | Risk rating 8 | — | | | — | | | — | | | 2 | | | — | | | 1,136 | | | — | | | 1,138 | | | Total consumer | 137,583 | | | 266,547 | | | 211,990 | | | 138,733 | | | 145,886 | | | 367,822 | | | 9,447 | | | 1,278,008 | | | Commercial and industrial | | | | | | | | | | | | | | | | | Risk rating 1 | $ | 613 | | | $ | 2,753 | | | $ | 2,193 | | | $ | 326 | | | $ | 560 | | | $ | 32,282 | | | $ | 17,138 | | | $ | 55,865 | | | Risk rating 2 | 1,294 | | | 1,214 | | | 3,363 | | | 888 | | | 10,745 | | | 11,715 | | | 12,553 | | | 41,772 | | | Risk rating 3 | 100,599 | | | 324,852 | | | 67,231 | | | 75,146 | | | 32,433 | | | 80,895 | | | 821,855 | | | 1,503,011 | | | Risk rating 4 | 19,769 | | | 105,343 | | | 40,675 | | | 74,796 | | | 77,942 | | | 51,041 | | | 243,570 | | | 613,136 | | | Risk rating 5 | — | | | — | | | — | | | 1,524 | | | 40 | | | 355 | | | 1,795 | | | 3,714 | | | Risk rating 6 | 194 | | | 1,106 | | | 42,624 | | | 806 | | | 398 | | | 1,580 | | | 19,783 | | | 66,491 | | | Risk rating 7 | — | | | — | | | — | | | — | | | — | | | 822 | | | — | | | 822 | | | Risk rating 8 | — | | | — | | | — | | | — | | | — | | | 243 | | | — | | | 243 | | | Total commercial and industrial | 122,469 | | | 435,268 | | | 156,086 | | | 153,486 | | | 122,118 | | | 178,933 | | | 1,116,694 | | | 2,285,054 | | | Agricultural and other | | | | | | | | | | | | | | | | | Risk rating 1 | $ | 701 | | | $ | 146 | | | $ | 483 | | | $ | 344 | | | $ | 78 | | | $ | 107 | | | $ | 1,355 | | | $ | 3,214 | | | Risk rating 2 | 13 | | | — | | | 114 | | | 207 | | | 16 | | | — | | | 596 | | | 946 | | | Risk rating 3 | 126,189 | | | 7,916 | | | 3,656 | | | 2,910 | | | 2,325 | | | 33,756 | | | 232,266 | | | 409,018 | | | Risk rating 4 | 54,428 | | | 5,147 | | | 6,621 | | | 981 | | | 33,175 | | | 14,375 | | | 184,926 | | | 299,653 | | | Risk rating 5 | 2,357 | | | — | | | — | | | — | | | 904 | | | 6 | | | — | | | 3,267 | | | Risk rating 6 | — | | | — | | | 158 | | | 160 | | | 328 | | | 944 | | | 92 | | | 1,682 | | | Risk rating 7 | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Risk rating 8 | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Total agricultural and other | 183,688 | | | 13,209 | | | 11,032 | | | 4,602 | | | 36,826 | | | 49,188 | | | 419,235 | | | 717,780 | | | Total | $ | 1,643,303 | | | $ | 2,997,870 | | | $ | 2,033,517 | | | $ | 1,352,289 | | | $ | 2,646,927 | | | $ | 3,934,281 | | | $ | 2,519,021 | | | $ | 17,127,208 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | Term Loans Amortized Cost Basis by Origination Year | | | | | | 2025 | | 2024 | | 2023 | | 2022 | | 2021 | | Prior | | Revolving Loans Amortized Cost Basis | | Total | | (In thousands) | | Real estate: | | | | | | | | | | | | | | | | | Commercial real estate loans | | | | | | | | | | | | | | | | | Non-farm/non-residential | | | | | | | | | | | | | | | | | Risk rating 1 | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 301 | | | $ | — | | | $ | 301 | | | Risk rating 2 | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Risk rating 3 | 492,228 | | | 210,249 | | | 252,348 | | | 561,439 | | | 426,072 | | | 978,310 | | | 206,694 | | | 3,127,340 | | | Risk rating 4 | 86,206 | | | 108,516 | | | 96,811 | | | 558,844 | | | 278,939 | | | 561,388 | | | 240,408 | | | 1,931,112 | | | Risk rating 5 | 239 | | | 664 | | | 1,392 | | | 13,790 | | | — | | | 23,161 | | | — | | | 39,246 | | | Risk rating 6 | 11,983 | | | 33,432 | | | 1,735 | | | 40,615 | | | 6,407 | | | 97,516 | | | — | | | 191,688 | | | Risk rating 7 | — | | | — | | | 425 | | | — | | | — | | | — | | | — | | | 425 | | | Risk rating 8 | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Total non-farm/non-residential | 590,656 | | | 352,861 | | | 352,711 | | | 1,174,688 | | | 711,418 | | | 1,660,676 | | | 447,102 | | | 5,290,112 | | | Construction/land development | | | | | | | | | | | | | | | | | Risk rating 1 | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 8 | | | $ | — | | | $ | — | | | $ | 8 | | | Risk rating 2 | 376 | | | 93 | | | 129 | | | — | | | — | | | 120 | | | — | | | 718 | | | Risk rating 3 | 739,449 | | | 863,012 | | | 181,685 | | | 108,648 | | | 23,610 | | | 54,423 | | | 68,558 | | | 2,039,385 | | | Risk rating 4 | 63,720 | | | 201,687 | | | 56,444 | | | 143,542 | | | 14,648 | | | 20,780 | | | 163,294 | | | 664,115 | | | Risk rating 5 | — | | | — | | | — | | | 16,024 | | | — | | | — | | | — | | | 16,024 | | | Risk rating 6 | — | | | 4,584 | | | 275 | | | 512 | | | 536 | | | 836 | | | — | | | 6,743 | | | Risk rating 7 | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Risk rating 8 | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Total construction/land development | 803,545 | | | 1,069,376 | | | 238,533 | | | 268,726 | | | 38,802 | | | 76,159 | | | 231,852 | | | 2,726,993 | | | Agricultural | | | | | | | | | | | | | | | | | Risk rating 1 | $ | — | | | $ | — | | | $ | — | | | $ | 1,169 | | | $ | — | | | $ | — | | | $ | — | | | $ | 1,169 | | | Risk rating 2 | — | | | — | | | 225 | | | — | | | 1,012 | | | — | | | — | | | 1,237 | | | Risk rating 3 | 25,875 | | | 20,454 | | | 16,985 | | | 24,312 | | | 11,587 | | | 37,628 | | | 48,561 | | | 185,402 | | | Risk rating 4 | 18,496 | | | 24,511 | | | 6,407 | | | 19,027 | | | 18,746 | | | 32,232 | | | 14,119 | | | 133,538 | | | Risk rating 5 | — | | | — | | | — | | | 4,194 | | | — | | | 111 | | | — | | | 4,305 | | | Risk rating 6 | — | | | 1,881 | | | 34 | | | 358 | | | 1,646 | | | 2,527 | | | 315 | | | 6,761 | | | Risk rating 7 | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Risk rating 8 | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Total agricultural | 44,371 | | | 46,846 | | | 23,651 | | | 49,060 | | | 32,991 | | | 72,498 | | | 62,995 | | | 332,412 | | | Total commercial real estate loans | $ | 1,438,572 | | | $ | 1,469,083 | | | $ | 614,895 | | | $ | 1,492,474 | | | $ | 783,211 | | | $ | 1,809,333 | | | $ | 741,949 | | | $ | 8,349,517 | | | Residential real estate loans | | | | | | | | | | | | | | | | | Residential 1-4 family | | | | | | | | | | | | | | | | | Risk rating 1 | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 83 | | | $ | 1 | | | $ | 84 | | | Risk rating 2 | — | | | — | | | 156 | | | — | | | — | | | — | | | 1 | | | 157 | | | Risk rating 3 | 284,182 | | | 179,100 | | | 230,204 | | | 344,291 | | | 165,821 | | | 393,067 | | | 120,796 | | | 1,717,461 | | | Risk rating 4 | 14,704 | | | 36,409 | | | 14,293 | | | 53,960 | | | 100,597 | | | 73,643 | | | 83,482 | | | 377,088 | | | Risk rating 5 | 331 | | | — | | | 684 | | | 653 | | | 981 | | | 5,599 | | | 101 | | | 8,349 | | | Risk rating 6 | 117 | | | 667 | | | 4,143 | | | 8,520 | | | 4,481 | | | 12,693 | | | 574 | | | 31,195 | | | Risk rating 7 | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Risk rating 8 | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Total residential 1-4 family | 299,334 | | | 216,176 | | | 249,480 | | | 407,424 | | | 271,880 | | | 485,085 | | | 204,955 | | | 2,134,334 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | Term Loans Amortized Cost Basis by Origination Year | | | | | | 2025 | | 2024 | | 2023 | | 2022 | | 2021 | | Prior | | Revolving Loans Amortized Cost Basis | | Total | | (In thousands) | | Multifamily residential | | | | | | | | | | | | | | | | | Risk rating 1 | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | Risk rating 2 | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Risk rating 3 | 237,328 | | | 55,087 | | | 58,077 | | | 141,548 | | | 29,736 | | | 104,185 | | | 9,189 | | | 635,150 | | | Risk rating 4 | 897 | | | 663 | | | 199,306 | | | 197,414 | | | 10,767 | | | 23,742 | | | 29,872 | | | 462,661 | | | Risk rating 5 | — | | | — | | | — | | | — | | | 503 | | | 1,501 | | | — | | | 2,004 | | | Risk rating 6 | — | | | — | | | — | | | 40,113 | | | — | | | 983 | | | — | | | 41,096 | | | Risk rating 7 | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Risk rating 8 | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Total multifamily residential | 238,225 | | | 55,750 | | | 257,383 | | | 379,075 | | | 41,006 | | | 130,411 | | | 39,061 | | | 1,140,911 | | | Total real estate | $ | 1,976,131 | | | $ | 1,741,009 | | | $ | 1,121,758 | | | $ | 2,278,973 | | | $ | 1,096,097 | | | $ | 2,424,829 | | | $ | 985,965 | | | $ | 11,624,762 | | | Consumer | | | | | | | | | | | | | | | | | Risk rating 1 | $ | 4,723 | | | $ | 2,974 | | | $ | 1,306 | | | $ | 970 | | | $ | 449 | | | $ | 1,191 | | | $ | 1,654 | | | $ | 13,267 | | | Risk rating 2 | — | | | — | | | — | | | — | | | — | | | 217 | | | — | | | 217 | | | Risk rating 3 | 277,176 | | | 216,183 | | | 150,202 | | | 153,393 | | | 140,454 | | | 255,252 | | | 1,218 | | | 1,193,878 | | | Risk rating 4 | 2,526 | | | 1,916 | | | 1,031 | | | 5,092 | | | 1,509 | | | 4,376 | | | 126 | | | 16,576 | | | Risk rating 5 | — | | | — | | | 114 | | | 464 | | | 200 | | | 1,146 | | | — | | | 1,924 | | | Risk rating 6 | 778 | | | 12,570 | | | 6,296 | | | 1,504 | | | 246 | | | 5,322 | | | 28 | | | 26,744 | | | Risk rating 7 | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Risk rating 8 | — | | | — | | | — | | | 1,140 | | | — | | | — | | | — | | | 1,140 | | | Total consumer | 285,203 | | | 233,643 | | | 158,949 | | | 162,563 | | | 142,858 | | | 267,504 | | | 3,026 | | | 1,253,746 | | | Commercial and industrial | | | | | | | | | | | | | | | | | Risk rating 1 | $ | 951 | | | $ | 3,241 | | | $ | 288 | | | $ | 364 | | | $ | 636 | | | $ | 20,727 | | | $ | 14,327 | | | $ | 40,534 | | | Risk rating 2 | 2 | | | 43 | | | 62 | | | 277 | | | — | | | 20 | | | 4,018 | | | 4,422 | | | Risk rating 3 | 401,676 | | | 92,773 | | | 419,568 | | | 132,633 | | | 41,839 | | | 249,339 | | | 325,878 | | | 1,663,706 | | | Risk rating 4 | 80,245 | | | 33,265 | | | 50,968 | | | 41,099 | | | 23,792 | | | 58,246 | | | 152,751 | | | 440,366 | | | Risk rating 5 | — | | | — | | | 7 | | | 40 | | | 4,632 | | | 955 | | | 1,147 | | | 6,781 | | | Risk rating 6 | 852 | | | 40,887 | | | 391 | | | 648 | | | 663 | | | 1,785 | | | 21,025 | | | 66,251 | | | Risk rating 7 | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Risk rating 8 | — | | | — | | | 1 | | | — | | | 329 | | | — | | | 11 | | | 341 | | | Total commercial and industrial | 483,726 | | | 170,209 | | | 471,285 | | | 175,061 | | | 71,891 | | | 331,072 | | | 519,157 | | | 2,222,401 | | | Agricultural and other | | | | | | | | | | | | | | | | | Risk rating 1 | $ | 214 | | | $ | 556 | | | $ | 344 | | | $ | 78 | | | $ | 16 | | | $ | 90 | | | $ | 948 | | | $ | 2,246 | | | Risk rating 2 | 552 | | | 115 | | | 253 | | | 16 | | | — | | | — | | | 2,159 | | | 3,095 | | | Risk rating 3 | 28,999 | | | 5,040 | | | 4,214 | | | 3,111 | | | 22,774 | | | 17,136 | | | 248,547 | | | 329,821 | | | Risk rating 4 | 46,091 | | | 8,734 | | | 1,127 | | | 34,328 | | | 3,925 | | | 28,167 | | | 123,570 | | | 245,942 | | | Risk rating 5 | — | | | — | | | — | | | 1,222 | | | 11 | | | — | | | — | | | 1,233 | | | Risk rating 6 | — | | | 1,098 | | | 108 | | | 343 | | | 32 | | | 1,265 | | | 117 | | | 2,963 | | | Risk rating 7 | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Risk rating 8 | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Total agricultural and other | 75,856 | | | 15,543 | | | 6,046 | | | 39,098 | | | 26,758 | | | 46,658 | | | 375,341 | | | 585,300 | | | Total | $ | 2,820,916 | | | $ | 2,160,404 | | | $ | 1,758,038 | | | $ | 2,655,695 | | | $ | 1,337,604 | | | $ | 3,070,063 | | | $ | 1,883,489 | | | $ | 15,686,209 | |
The following table presents gross write-offs by origination date as of June 30, 2026 and December 31, 2025. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | Gross Loan Write-Offs by Origination Year | | | | | | 2026 | | 2025 | | 2024 | | 2023 | | 2022 | | Prior | | Revolving Loans Amortized Cost Basis | | Total | | (In thousands) | | Real estate | | | | | | | | | | | | | | | | | Commercial real estate loans | | | | | | | | | | | | | | | | | Non-farm/non-residential | $ | — | | | $ | — | | | $ | 453 | | | $ | — | | | $ | — | | | $ | 2,218 | | | $ | — | | | $ | 2,671 | | | Construction/land development | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Agricultural | — | | | — | | | — | | | — | | | — | | | 1 | | | — | | | 1 | | | Residential real estate loans | | | | | | | | | | | | | | | | | Residential 1-4 family | — | | | — | | | 41 | | | 129 | | | 54 | | | 393 | | | — | | | 617 | | | | | | | | | | | | | | | | | | | Total real estate | — | | | — | | | 494 | | | 129 | | | 54 | | | 2,612 | | | — | | | 3,289 | | | Consumer | — | | | 4 | | | 18 | | | 8 | | | 65 | | | 1,896 | | | — | | | 1,991 | | | Commercial and industrial | — | | | — | | | 650 | | | 892 | | | 289 | | | 603 | | | 311 | | | 2,745 | | | Agricultural & other | 1,342 | | * | — | | | — | | | 2 | | | — | | | — | | | — | | | 1,344 | | | Total | $ | 1,342 | | | $ | 4 | | | $ | 1,162 | | | $ | 1,031 | | | $ | 408 | | | $ | 5,111 | | | $ | 311 | | | $ | 9,369 | |
*The 2026 write-off consists entirely of overdrafts. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | Gross Loan Write-Offs by Origination Year | | | | | | 2025 | | 2024 | | 2023 | | 2022 | | 2021 | | Prior | | Revolving Loans Amortized Cost Basis | | Total | | (In thousands) | | Real estate | | | | | | | | | | | | | | | | | Commercial real estate loans | | | | | | | | | | | | | | | | | Non-farm/non-residential | $ | — | | | $ | 5 | | | $ | 400 | | | $ | 47 | | | $ | 289 | | | $ | 2,293 | | | $ | — | | | $ | 3,034 | | | Construction/land development | — | | | 18 | | | 11 | | | — | | | 41 | | | — | | | — | | | 70 | | | Agricultural | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Residential real estate loans | | | | | | | | | | | | | | | | | Residential 1-4 family | — | | | 21 | | | 98 | | | 309 | | | — | | | 203 | | | — | | | 631 | | | Multifamily residential | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Total real estate | — | | | 44 | | | 509 | | | 356 | | | 330 | | | 2,496 | | | — | | | 3,735 | | | Consumer | 222 | | ** | 82 | | | 628 | | | 613 | | | 277 | | | 458 | | | 41 | | | 2,321 | | | Commercial and industrial | — | | | 149 | | | 2,582 | | | 763 | | | 1,206 | | | 898 | | | 779 | | | 6,377 | | | Agricultural & other | 2,808 | | ** | 2 | | | — | | | — | | | — | | | — | | | — | | | 2,810 | | | Total | $ | 3,030 | | | $ | 277 | | | $ | 3,719 | | | $ | 1,732 | | | $ | 1,813 | | | $ | 3,852 | | | $ | 820 | | | $ | 15,243 | |
**The 2025 write-offs primarily consist of overdrafts. The Company considers the performance of the loan portfolio and its impact on the allowance for credit losses. The Company also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following tables present the amortized cost of performing and nonperforming loans (includes impaired loans - loans individually analyzed for credit losses for which a specific reserve has been recorded, non-accrual loans, loans past due 90 days or more and restructured loans made to borrowers experiencing financial difficulty for purposes of the disclosure) as of June 30, 2026 and December 31, 2025. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | Term Loans Amortized Cost Basis by Origination Year | | | | | | 2026 | | 2025 | | 2024 | | 2023 | | 2022 | | Prior | | Revolving Loans Amortized Cost Basis | | Total | | (In thousands) | | Real estate: | | | | | | | | | | | | | | | | | Commercial real estate loans | | | | | | | | | | | | | | | | | Non-farm/non-residential | | | | | | | | | | | | | | | | | Performing | $ | 489,350 | | | $ | 721,022 | | | $ | 465,209 | | | $ | 436,045 | | | $ | 1,212,713 | | | $ | 2,116,675 | | | $ | 389,279 | | | $ | 5,830,293 | | | Non-performing | 260 | | | 145 | | | 33,497 | | | 1,313 | | | 30,636 | | | 25,685 | | | — | | | 91,536 | | Total non-farm/non-residential | 489,610 | | | 721,167 | | | 498,706 | | | 437,358 | | | 1,243,349 | | | 2,142,360 | | | 389,279 | | | 5,921,829 | | Construction/land development | | | | | | | | | | | | | | | | | Performing | $ | 398,870 | | | $ | 1,005,826 | | | $ | 711,890 | | | $ | 185,043 | | | $ | 162,516 | | | $ | 93,503 | | | $ | 214,289 | | | $ | 2,771,937 | | | Non-performing | — | | | 139 | | | 7,193 | | | — | | | 284 | | | 533 | | | 30 | | | 8,179 | | Total construction/ land development | 398,870 | | | 1,005,965 | | | 719,083 | | | 185,043 | | | 162,800 | | | 94,036 | | | 214,319 | | | 2,780,116 | | | Agricultural | | | | | | | | | | | | | | | | | Performing | $ | 28,863 | | | $ | 50,420 | | | $ | 48,162 | | | $ | 17,926 | | | $ | 39,779 | | | $ | 78,323 | | | $ | 64,088 | | | $ | 327,561 | | | Non-performing | — | | | — | | | — | | | — | | | 775 | | | 724 | | | 171 | | | 1,670 | | | Total agricultural | 28,863 | | | 50,420 | | | 48,162 | | | 17,926 | | | 40,554 | | | 79,047 | | | 64,259 | | | 329,231 | | Total commercial real estate loans | $ | 917,343 | | | $ | 1,777,552 | | | $ | 1,265,951 | | | $ | 640,327 | | | $ | 1,446,703 | | | $ | 2,315,443 | | | $ | 667,857 | | | $ | 9,031,176 | | | Residential real estate loans | | | | | | | | | | | | | | | | | Residential 1-4 family | | | | | | | | | | | | | | | | | Performing | $ | 188,277 | | | $ | 253,321 | | | $ | 225,619 | | | $ | 262,728 | | | $ | 511,784 | | | $ | 801,990 | | | $ | 271,062 | | | $ | 2,514,781 | | | Non-performing | — | | | 1,066 | | | 1,952 | | | 5,290 | | | 6,821 | | | 15,189 | | | 363 | | | 30,681 | | Total residential 1-4 family | 188,277 | | | 254,387 | | | 227,571 | | | 268,018 | | | 518,605 | | | 817,179 | | | 271,425 | | | 2,545,462 | | | Multifamily residential | | | | | | | | | | | | | | | | | Performing | $ | 93,943 | | | $ | 250,907 | | | $ | 160,887 | | | $ | 147,123 | | | $ | 366,420 | | | $ | 203,694 | | | $ | 34,363 | | | $ | 1,257,337 | | | Non-performing | — | | | — | | | — | | | — | | | 10,369 | | | 2,022 | | | — | | | 12,391 | | Total multifamily residential | 93,943 | | | 250,907 | | | 160,887 | | | 147,123 | | | 376,789 | | | 205,716 | | | 34,363 | | | 1,269,728 | | | Total real estate | $ | 1,199,563 | | | $ | 2,282,846 | | | $ | 1,654,409 | | | $ | 1,055,468 | | | $ | 2,342,097 | | | $ | 3,338,338 | | | $ | 973,645 | | | $ | 12,846,366 | | | Consumer | | | | | | | | | | | | | | | | | Performing | $ | 137,578 | | | $ | 266,249 | | | $ | 210,947 | | | $ | 133,233 | | | $ | 143,881 | | | $ | 364,524 | | | $ | 9,443 | | | $ | 1,265,855 | | | Non-performing | 5 | | | 298 | | | 1,043 | | | 5,500 | | | 2,005 | | | 3,298 | | | 4 | | | 12,153 | | | Total consumer | 137,583 | | | 266,547 | | | 211,990 | | | 138,733 | | | 145,886 | | | 367,822 | | | 9,447 | | | 1,278,008 | | | Commercial and industrial | | | | | | | | | | | | | | | | | Performing | $ | 122,321 | | | $ | 434,424 | | | $ | 113,513 | | | $ | 152,776 | | | $ | 121,947 | | | $ | 177,486 | | | $ | 1,096,975 | | | $ | 2,219,442 | | | Non-performing | 148 | | | 844 | | | 42,573 | | | 710 | | | 171 | | | 1,447 | | | 19,719 | | | 65,612 | | | Total commercial and industrial | 122,469 | | | 435,268 | | | 156,086 | | | 153,486 | | | 122,118 | | | 178,933 | | | 1,116,694 | | | 2,285,054 | | | Agricultural and other | | | | | | | | | | | | | | | | | Performing | $ | 183,688 | | | $ | 13,209 | | | $ | 10,874 | | | $ | 4,484 | | | $ | 36,514 | | | $ | 48,496 | | | $ | 419,235 | | | $ | 716,500 | | | Non-performing | — | | | — | | | 158 | | | 118 | | | 312 | | | 692 | | | — | | | 1,280 | | | Total agricultural and other | 183,688 | | | 13,209 | | | 11,032 | | | 4,602 | | | 36,826 | | | 49,188 | | | 419,235 | | | 717,780 | | | Total | $ | 1,643,303 | | | $ | 2,997,870 | | | $ | 2,033,517 | | | $ | 1,352,289 | | | $ | 2,646,927 | | | $ | 3,934,281 | | | $ | 2,519,021 | | | $ | 17,127,208 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | Term Loans Amortized Cost Basis by Origination Year | | | | | | 2025 | | 2024 | | 2023 | | 2022 | | 2021 | | Prior | | Revolving Loans Amortized Cost Basis | | Total | | (In thousands) | | Real estate: | | | | | | | | | | | | | | | | | Commercial real estate loans | | | | | | | | | | | | | | | | | Non-farm/non-residential | | | | | | | | | | | | | | | | | Performing | $ | 590,656 | | | $ | 319,429 | | | $ | 352,286 | | | $ | 1,147,293 | | | $ | 709,851 | | | $ | 1,629,945 | | | $ | 447,102 | | | $ | 5,196,562 | | | Non-performing | — | | | 33,432 | | | 425 | | | 27,395 | | | 1,567 | | | 30,731 | | | — | | | 93,550 | | Total non-farm/non-residential | 590,656 | | | 352,861 | | | 352,711 | | | 1,174,688 | | | 711,418 | | | 1,660,676 | | | 447,102 | | | 5,290,112 | | Construction/land development | | | | | | | | | | | | | | | | | Performing | $ | 803,545 | | | $ | 1,065,095 | | | $ | 238,336 | | | $ | 268,292 | | | $ | 38,502 | | | $ | 75,522 | | | $ | 231,852 | | | $ | 2,721,144 | | | Non-performing | — | | | 4,281 | | | 197 | | | 434 | | | 300 | | | 637 | | | — | | | 5,849 | | Total construction/land development | 803,545 | | | 1,069,376 | | | 238,533 | | | 268,726 | | | 38,802 | | | 76,159 | | | 231,852 | | | 2,726,993 | | | Agricultural | | | | | | | | | | | | | | | | | Performing | $ | 44,371 | | | $ | 46,846 | | | $ | 23,651 | | | $ | 49,060 | | | $ | 32,991 | | | $ | 72,021 | | | $ | 62,983 | | | $ | 331,923 | | | Non-performing | — | | | — | | | — | | | — | | | — | | | 477 | | | 12 | | | 489 | | | Total agricultural | 44,371 | | | 46,846 | | | 23,651 | | | 49,060 | | | 32,991 | | | 72,498 | | | 62,995 | | | 332,412 | | Total commercial real estate loans | $ | 1,438,572 | | | $ | 1,469,083 | | | $ | 614,895 | | | $ | 1,492,474 | | | $ | 783,211 | | | $ | 1,809,333 | | | $ | 741,949 | | | $ | 8,349,517 | | | Residential real estate loans | | | | | | | | | | | | | | | | | Residential 1-4 family | | | | | | | | | | | | | | | | | Performing | $ | 299,149 | | | $ | 215,558 | | | $ | 244,767 | | | $ | 400,643 | | | $ | 267,493 | | | $ | 472,717 | | | $ | 204,605 | | | $ | 2,104,932 | | | Non-performing | 185 | | | 618 | | | 4,713 | | | 6,781 | | | 4,387 | | | 12,368 | | | 350 | | | 29,402 | | Total residential 1-4 family | 299,334 | | | 216,176 | | | 249,480 | | | 407,424 | | | 271,880 | | | 485,085 | | | 204,955 | | | 2,134,334 | | | Multifamily residential | | | | | | | | | | | | | | | | | Performing | $ | 238,225 | | | $ | 55,750 | | | $ | 257,383 | | | $ | 368,962 | | | $ | 41,006 | | | $ | 129,599 | | | $ | 39,061 | | | $ | 1,129,986 | | | Non-performing | — | | | — | | | — | | | 10,113 | | | — | | | 812 | | | — | | | 10,925 | | Total multifamily residential | 238,225 | | | 55,750 | | | 257,383 | | | 379,075 | | | 41,006 | | | 130,411 | | | 39,061 | | | 1,140,911 | | | Total real estate | $ | 1,976,131 | | | $ | 1,741,009 | | | $ | 1,121,758 | | | $ | 2,278,973 | | | $ | 1,096,097 | | | $ | 2,424,829 | | | $ | 985,965 | | | $ | 11,624,762 | | | Consumer | | | | | | | | | | | | | | | | | Performing | $ | 285,182 | | | $ | 232,580 | | | $ | 153,116 | | | $ | 160,625 | | | $ | 142,817 | | | $ | 262,786 | | | $ | 3,024 | | | $ | 1,240,130 | | | Non-performing | 21 | | | 1,063 | | | 5,833 | | | 1,938 | | | 41 | | | 4,718 | | | 2 | | | 13,616 | | | Total consumer | 285,203 | | | 233,643 | | | 158,949 | | | 162,563 | | | 142,858 | | | 267,504 | | | 3,026 | | | 1,253,746 | | | Commercial and industrial | | | | | | | | | | | | | | | | | Performing | $ | 482,817 | | | $ | 129,624 | | | $ | 471,177 | | | $ | 174,639 | | | $ | 71,256 | | | $ | 329,475 | | | $ | 499,046 | | | $ | 2,158,034 | | | Non-performing | 909 | | | 40,585 | | | 108 | | | 422 | | | 635 | | | 1,597 | | | 20,111 | | | 64,367 | | | Total commercial and industrial | 483,726 | | | 170,209 | | | 471,285 | | | 175,061 | | | 71,891 | | | 331,072 | | | 519,157 | | | 2,222,401 | | | Agricultural and other | | | | | | | | | | | | | | | | | Performing | $ | 75,856 | | | $ | 15,385 | | | $ | 5,938 | | | $ | 38,786 | | | $ | 26,715 | | | $ | 46,132 | | | $ | 375,264 | | | $ | 584,076 | | | Non-performing | — | | | 158 | | | 108 | | | 312 | | | 43 | | | 526 | | | 77 | | | 1,224 | | | Total agricultural and other | 75,856 | | | 15,543 | | | 6,046 | | | 39,098 | | | 26,758 | | | 46,658 | | | 375,341 | | | 585,300 | | | Total | $ | 2,820,916 | | | $ | 2,160,404 | | | $ | 1,758,038 | | | $ | 2,655,695 | | | $ | 1,337,604 | | | $ | 3,070,063 | | | $ | 1,883,489 | | | $ | 15,686,209 | |
The Company had approximately $69.9 million or 279 total revolving loans convert to term loans for the six months ended June 30, 2026 compared to $35.7 million or 103 total revolving loans convert to term loans for the six months ended June 30, 2025. These loans were considered immaterial for vintage disclosure inclusion. The following table presents the amortized cost basis of modified loans to borrowers experiencing financial difficulty by class and modification type at June 30, 2026 and December 31, 2025. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | | | | | | | | | Combination of Modifications | | | | | | Term Extension | | Interest Rate Reduction | | Principal Reduction | | Interest Only | | Interest Rate Reduction and Term Extension | | | | Term Extension and Interest Only | | Term Extension and Principal Reduction | | Post-
Modification
Outstanding
Balance | | Percentage of Total Class of Loans Receivable | | (In thousands) | | Real estate: | | | | | | | | | | | | | | | | | | | | | Commercial real estate loans | | | | | | | | | | | | | | | | | | | | | Non-farm/non-residential | $ | 373 | | | $ | 31,869 | | | $ | — | | | $ | 881 | | | $ | 326 | | | | | $ | 14,310 | | | $ | — | | | $ | 47,759 | | | 0.81 | % | | Construction/land development | — | | | — | | | — | | | — | | | — | | | | | — | | | — | | | — | | | — | | | | | | | | | | | | | | | | | | | | | | | Residential real estate loans | | | | | | | | | | | | | | | | | | | | | Residential 1-4 family | 1,020 | | | 584 | | | 96 | | | 18 | | | 2,609 | | | | | — | | | 112 | | | 4,439 | | | 0.17 | | | | | | | | | | | | | | | | | | | | | | | Total real estate | 1,393 | | | 32,453 | | | 96 | | | 899 | | | 2,935 | | | | | 14,310 | | | 112 | | | 52,198 | | | 0.41 | | | Consumer | — | | | 1,135 | | | — | | | — | | | — | | | | | — | | | — | | | 1,135 | | | 0.09 | | | Commercial and industrial | 55 | | | 60,206 | | | — | | | — | | | — | | | | | — | | | — | | | 60,261 | | | 2.64 | | | | | | | | | | | | | | | | | | | | | | | Total | $ | 1,448 | | | $ | 93,794 | | | $ | 96 | | | $ | 899 | | | $ | 2,935 | | | | | $ | 14,310 | | | $ | 112 | | | $ | 113,594 | | | 0.66 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | | | | | | | | | Combination of Modifications | | | | | | Term Extension | | Interest Rate Reduction | | Principal Reduction | | Interest Only | | Interest Rate Reduction and Term Extension | | | | Term Extension and Interest Only | | Term Extension and Principal Reduction | | Post-
Modification
Outstanding
Balance | | Percentage of Total Class of Loans Receivable | | (In thousands) | | Real estate: | | | | | | | | | | | | | | | | | | | | | Commercial real estate loans | | | | | | | | | | | | | | | | | | | | | Non-farm/non-residential | $ | 378 | | | $ | 31,869 | | | $ | — | | | $ | 1,001 | | | $ | 330 | | | | | $ | 14,752 | | | $ | — | | | $ | 48,330 | | | 0.91 | % | | Construction/land development | — | | | — | | | — | | | 36 | | | — | | | | | — | | | — | | | 36 | | | — | | | | | | | | | | | | | | | | | | | | | | | Residential real estate loans | | | | | | | | | | | | | | | | | | | | | Residential 1-4 family | 1,033 | | | 1,018 | | | 99 | | | 20 | | | 2,300 | | | | | — | | | 114 | | | 4,584 | | | 0.21 | | | | | | | | | | | | | | | | | | | | | | | Total real estate | 1,411 | | | 32,887 | | | 99 | | | 1,057 | | | 2,630 | | | | | 14,752 | | | 114 | | | 52,950 | | | 0.46 | | | Consumer | — | | | 2,938 | | | — | | | — | | | — | | | | | — | | | — | | | 2,938 | | | 0.23 | | | Commercial and industrial | 58 | | | 59,585 | | | — | | | — | | | 74 | | | | | — | | | — | | | 59,717 | | | 2.69 | | | | | | | | | | | | | | | | | | | | | | | Total | $ | 1,469 | | | $ | 95,410 | | | $ | 99 | | | $ | 1,057 | | | $ | 2,704 | | | | | $ | 14,752 | | | $ | 114 | | | $ | 115,605 | | | 0.74 | % |
During the six months ended June 30, 2026, the Company restructured approximately $315,000 in loans to three borrowers. The ending balance of these loans as of June 30, 2026, was $302,000. During the six months ended June 30, 2025, the Company restructured approximately $4.2 million in loans to six borrowers. The ending balance of these loans as of June 30, 2025, was $4.1 million. The Company considered the financial effect of these loan modifications to borrowers experiencing financial difficulty during the six months ended June 30, 2026 and June 30, 2025 as well as the unadvanced balances to these borrowers immaterial for tabular disclosure inclusion. The following table presents the amortized cost basis of loans that had a payment default during the six months ended June 30, 2026 and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty. | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | Term Extension | | Interest Rate Reduction | | | | | | Combination Interest Rate Reduction and Term Extension | | | | | | (Dollars in thousands) | | Real estate | | | | | | | | | | | | | | | Commercial real estate loans | | | | | | | | | | | | | | | Non-farm/non-residential | $ | — | | | $ | — | | | | | | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Residential real estate loans | | | | | | | | | | | | | | | Residential 1-4 family | — | | | 116 | | | | | | | 369 | | | | | | | Total real estate | — | | | 116 | | | | | | | 369 | | | | | | | Consumer | — | | | — | | | | | | | — | | | | | | | Commercial and industrial | 2 | | | — | | | | | | | — | | | | | | | | | | | | | | | | | | | | | Total | $ | 2 | | | $ | 116 | | | | | | | $ | 369 | | | | | |
The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The Company has modified 10 loans over the past 12 months to borrowers experiencing financial difficulty. The pre-modification balance of the loans was $1.1 million, and the ending balance as of June 30, 2026 was $1.0 million. The $1.0 million balance consists of $487,000 of non-accrual loans and $532,000 of current loans as of June 30, 2026. Upon the Company's determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses on loans is adjusted by the same amount. The defaults impact the loss rate by applicable loan pool for the quarterly CECL calculation. For individually analyzed loans which are not considered to be collateral dependent, an allowance is recorded based on the loss rate for the respective pool within the collective evaluation. The following is a presentation of total foreclosed assets as of June 30, 2026 and December 31, 2025: | | | | | | | | | | | | | June 30, 2026 | | December 31, 2025 | | (In thousands) | | Commercial real estate loans | | | | | Non-farm/non-residential | $ | 23,911 | | | $ | 23,433 | | | Construction/land development | 16,024 | | | 15,230 | | | Residential real estate loans | | | | | Residential 1-4 family | 2,204 | | | 1,168 | | | | | | | Total foreclosed assets held for sale | $ | 42,139 | | | $ | 39,831 | |
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