v3.26.3
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)
 9 Months Ended
Sep. 30, 2026
Receivables [Abstract]  
Schedule of Loans Held for Sale
The following table presents loans held for sale:
(Dollars in thousands)September 30, 2026December 31, 2025
1-4 family residential$2,396 $459 
Total loans held for sale$2,396 $459 
Schedule of Amortized Cost and Unpaid Principal for Loans Held for Investment
The following table presents the amortized cost and unpaid principal balance of loans held for investment:
September 30, 2026December 31, 2025
(Dollars in thousands)Amortized
Cost		Unpaid
Principal		DifferenceAmortized
Cost		Unpaid
Principal		Difference
Commercial real estate$662,836 $663,075 $(239)$730,435 $730,533 $(98)
Construction, land development, land196,488 196,760 (272)224,214 224,414 (200)
1-4 family residential 255,441 252,912 2,529 193,508 192,322 1,186 
Farmland40,534 40,557 (23)43,433 43,474 (41)
Commercial1,196,003 1,205,369 (9,366)1,163,664 1,173,373 (9,709)
Factored receivables2,235,188 2,240,486 (5,298)1,462,900 1,465,854 (2,954)
Consumer17,003 17,015 (12)16,819 16,833 (14)
Mortgage warehouse1,081,012 1,081,012 — 1,156,334 1,156,334 — 
Total loans held for investment5,684,505 $5,697,186 $(12,681)4,991,307 $5,003,137 $(11,830)
Allowance for credit losses(38,595)(36,511)
$5,645,910 $4,954,796 
Schedule of Allowance for Loan and Lease Losses The activity in the allowance for credit losses (“ACL”) related to loans held for investment is as follows:
(Dollars in thousands)Beginning
Balance		Credit Loss
Expense		Charge-offsRecoveriesInitial ACL on Loans Purchased with Credit DeteriorationEnding
Balance
Three Months Ended September 30, 2026
Commercial real estate$4,244 $3,749 $— $9 $— $8,002 
Construction, land development, land2,919 (231)— — — 2,688 
1-4 family residential2,086 828 (12)1 — 2,903 
Farmland301 89 — — — 390 
Commercial11,450 (828)(329)59 — 10,352 
Factored receivables12,308 1,597 (1,122)237 — 13,020 
Consumer413 (197)(76)17 — 157 
Mortgage warehouse1,062 21 — — — 1,083 
$34,783 $5,028 $(1,539)$323 $— $38,595 
(Dollars in thousands)Beginning
Balance		Credit Loss
Expense		Charge-offsRecoveriesInitial ACL on Loans Purchased with Credit DeteriorationEnding
Balance
Three Months Ended September 30, 2025
Commercial real estate$4,198 $306 $(36)$4 $— $4,472 
Construction, land development, land2,589 (415)— 46 — 2,220 
1-4 family residential1,560 243 (58)23 — 1,768 
Farmland302 (7)— — — 295 
Commercial17,813 1,724 (5,424)18 — 14,131 
Factored receivables10,553 2,310 (4,014)183 — 9,032 
Consumer466 114 (158)25 — 447 
Mortgage warehouse1,210 (26)— — — 1,184 
$38,691 $4,249 $(9,690)$299 $— $33,549 
(Dollars in thousands)Beginning
Balance		Credit Loss
Expense		Charge-offsRecoveriesInitial ACL on Loans Purchased with Credit DeteriorationEnding
Balance
Nine Months Ended September 30, 2026
Commercial real estate$4,713 $3,900 $(668)$57 $— $8,002 
Construction, land development, land2,970 (283)— 1 — 2,688 
1-4 family residential1,927 1,033 (86)29 — 2,903 
Farmland298 92 — — — 390 
Commercial14,947 (3,453)(2,562)1,420 — 10,352 
Factored receivables10,069 5,723 (3,466)694 — 13,020 
Consumer429 (42)(297)67 — 157 
Mortgage warehouse1,158 (75)— — — 1,083 
$36,511 $6,895 $(7,079)$2,268 $— $38,595 
(Dollars in thousands)Beginning
Balance		Credit Loss
Expense		Charge-offsRecoveriesInitial ACL on Loans Purchased with Credit DeteriorationEnding
Balance
Nine Months Ended September 30, 2025
Commercial real estate$3,825 $733 $(157)$71 $— $4,472 
Construction, land development, land2,873 (450)(250)47 — 2,220 
1-4 family residential1,404 442 (104)26 — 1,768 
Farmland386 (91)— — — 295 
Commercial21,419 2,486 (20,927)373 10,780 14,131 
Factored receivables9,600 1,181 (6,087)4,338 — 9,032 
Consumer185 584 (428)106 — 447 
Mortgage warehouse1,022 162 — — — 1,184 
$40,714 $5,047 $(27,953)$4,961 $10,780 $33,549 
Schedule of Individual And Collective Allowance For Credit Losses On Financing Receivables And Loan Balances
The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans:
(Dollars in thousands)Real EstateAccounts
Receivable		EquipmentOtherTotalACL
Allocation
September 30, 2026
Commercial real estate$97,585 $— $— $— $97,585 $4,042 
Construction, land development, land— — — — — — 
1-4 family residential2,399 — — — 2,399 107 
Farmland171 — 42 118 331 — 
Commercial— — 31,825 3,655 35,480 1,254 
Factored receivables— 20,764 — — 20,764 1,872 
Consumer— — — — — — 
Mortgage warehouse— — — — — — 
Total$100,155 $20,764 $31,867 $3,773 $156,559 $7,275 
(Dollars in thousands)Real EstateAccounts
Receivable		EquipmentOtherTotalACL
Allocation
December 31, 2025
Commercial real estate$25,162 $— $— $— $25,162 $— 
Construction, land development, land— — — — — — 
1-4 family residential1,827 — — — 1,827 — 
Farmland1,177 — 55 138 1,370 — 
Commercial173 — 40,647 4,627 45,447 1,708 
Factored receivables— 4,650 — — 4,650 2,578 
Consumer— — — 12 12 — 
Mortgage warehouse— — — — — — 
Total$28,339 $4,650 $40,702 $4,777 $78,468 $4,286 
Schedule of Contractually Past Due and Nonaccrual Loans
The following tables present an aging of contractually past due loans:
(Dollars in thousands)Past Due
30-59 Days		Past Due
60-90 Days		Past Due 90
Days or More		Total
Past Due		CurrentTotalPast Due 90
Days or More
and Accruing
September 30, 2026
Commercial real estate$169 $1,447 $76,325 $77,941 $584,895 $662,836 $— 
Construction, land development, land— — — — 196,488 196,488 — 
1-4 family residential382 1,670 1,594 3,646 251,795 255,441 — 
Farmland— 95 — 95 40,439 40,534 — 
Commercial1,589 7,312 30,567 39,468 1,156,535 1,196,003 — 
Factored receivables33,234 3,793 17,086 54,113 2,181,075 2,235,188 17,086 
Consumer63 15 — 78 16,925 17,003 — 
Mortgage warehouse— — — — 1,081,012 1,081,012 — 
Total$35,437 $14,332 $125,572 $175,341 $5,509,164 $5,684,505 $17,086 
(Dollars in thousands)Past Due
30-59 Days		Past Due
60-90 Days		Past Due 90
Days or More		Total
Past Due		CurrentTotalPast Due 90
Days or More
and Accruing
December 31, 2025
Commercial real estate$40,346 $688 $6,851 $47,885 $682,550 $730,435 $— 
Construction, land development, land— — — — 224,214 224,214 — 
1-4 family residential370 1,138 1,489 2,997 190,511 193,508 — 
Farmland218 — — 218 43,215 43,433 — 
Commercial31,105 6,798 13,299 51,202 1,112,462 1,163,664 1,178 
Factored receivables25,876 6,334 1,347 33,557 1,429,343 1,462,900 1,347 
Consumer14 9 — 23 16,796 16,819 — 
Mortgage warehouse— — — — 1,156,334 1,156,334 — 
Total$97,929 $14,967 $22,986 $135,882 $4,855,425 $4,991,307 $2,525 
Schedule of Amortized Cost Basis of Loans on Nonaccrual Status
The following table presents the amortized cost basis of loans on nonaccrual status and the amortized cost basis of loans on nonaccrual status for which there was no related allowance for credit losses:
September 30, 2026December 31, 2025
(Dollars in thousands)Total NonaccrualNonaccrual
With No ACL		Total NonaccrualNonaccrual
With No ACL
Commercial real estate$95,117 $42,026 $8,502 $8,502 
Construction, land development, land— — — — 
1-4 family residential2,399 1,961 1,790 1,790 
Farmland330 330 458 458 
Commercial35,422 30,573 45,446 38,224 
Factored receivables— — — — 
Consumer— — 12 12 
Mortgage warehouse— — — — 
$133,268 $74,890 $56,208 $48,986 
Schedule of Accrued Interest on Non Accrual Loans Reversed Through Interest Income
The following table presents accrued interest on nonaccrual loans reversed through interest income:
Three Months Ended September 30,Nine Months Ended September 30,
(Dollars in thousands)2026202520262025
Commercial real estate$— $— $265 $76 
Construction, land development, land— — — — 
1-4 family residential2 — 5 2 
Farmland2 11 17 11 
Commercial— 14 30 17 
Factored receivables— — — — 
Consumer— — — — 
Mortgage warehouse— — — — 
$4 $25 $317 $106 
Schedule of Nonperforming Loans
The following table presents information regarding nonperforming loans:
(Dollars in thousands)September 30, 2026December 31, 2025
Nonaccrual loans$133,268 $56,208 
Nonperforming factored receivables17,086 1,347 
$150,354 $57,555 
Schedule of Risk Category of Loans As of September 30, 2026 and December 31, 2025, based on the most recent analysis performed, the risk category of loans is as follows:
Revolving
Loans		Revolving
Loans
Converted
To Term
Loans		Total
(Dollars in thousands)Year of Origination
September 30, 202620262025202420232022Prior
Commercial real estate
Pass$18,680 $194,259 $80,853 $102,692 $31,155 $122,626 $9,333 $595 $560,193 
Classified— — 42,218 37,859 865 20,812 889 — 102,643 
Total commercial real estate$18,680 $194,259 $123,071 $140,551 $32,020 $143,438 $10,222 $595 $662,836 
YTD gross charge-offs$— $— $— $2 $— $666 $— $— $668 
Construction, land development, land
Pass$13,598 $65,521 $16,163 $99,814 $389 $1,003 $— $— $196,488 
Classified— — — — — — — — — 
Total construction, land development, land$13,598 $65,521 $16,163 $99,814 $389 $1,003 $— $— $196,488 
YTD gross charge-offs$— $— $— $— $— $— $— $— $— 
1-4 family residential
Pass$89,015 $48,894 $30,708 $13,755 $7,655 $29,484 $30,544 $3,048 $253,103 
Classified140 345 319 378 31 1,055 70 — 2,338 
Total 1-4 family residential$89,155 $49,239 $31,027 $14,133 $7,686 $30,539 $30,614 $3,048 $255,441 
YTD gross charge-offs$— $12 $— $— $— $74 $— $— $86 
Farmland
Pass$2,698 $7,196 $8,904 $2,348 $3,262 $13,256 $1,977 $316 $39,957 
Classified— — — — — 577 — — 577 
Total farmland$2,698 $7,196 $8,904 $2,348 $3,262 $13,833 $1,977 $316 $40,534 
YTD gross charge-offs$— $— $— $— $— $— $— $— $— 
Commercial
Pass$294,019 $269,841 $159,581 $41,538 $13,397 $11,779 $366,791 $1,868 $1,158,814 
Classified2,746 2,137 365 6,185 1,250 2,019 22,487 — 37,189 
Total commercial$296,765 $271,978 $159,946 $47,723 $14,647 $13,798 $389,278 $1,868 $1,196,003 
YTD gross charge-offs$— $1,632 $14 $245 $671 $— $— $— $2,562 
Factored receivables
Pass$2,214,985 $— $— $— $— $— $— $— $2,214,985 
Classified20,203 — — — — — — — 20,203 
Total factored receivables$2,235,188 $— $— $— $— $— $— $— $2,235,188 
YTD gross charge-offs$1,689 $1,777 $— $— $— $— $— $— $3,466 
Consumer
Pass$8,086 $1,411 $659 $465 $105 $191 $6,086 $— $17,003 
Classified— — — — — — — — — 
Total consumer$8,086 $1,411 $659 $465 $105 $191 $6,086 $— $17,003 
YTD gross charge-offs$258 $28 $4 $7 $— $— $— $— $297 
Mortgage warehouse
Pass$1,081,012 $— $— $— $— $— $— $— $1,081,012 
Classified— — — — — — — — — 
Total mortgage warehouse$1,081,012 $— $— $— $— $— $— $— $1,081,012 
YTD gross charge-offs$— $— $— $— $— $— $— $— $— 
Total loans
Pass$3,722,093 $587,122 $296,868 $260,612 $55,963 $178,339 $414,731 $5,827 $5,521,555 
Classified23,089 2,482 42,902 44,422 2,146 24,463 23,446 — 162,950 
Total loans$3,745,182 $589,604 $339,770 $305,034 $58,109 $202,802 $438,177 $5,827 $5,684,505 
YTD gross charge-offs$1,947 $3,449 $18 $254 $671 $740 $— $— $7,079 
Revolving
Loans		Revolving
Loans
Converted
To Term
Loans		Total
(Dollars in thousands)Year of Origination
December 31, 202520252024202320222021Prior
Commercial real estate
Pass$194,679 $167,423 $57,294 $32,510 $66,763 $96,283 $2,639 $841 $618,432 
Classified— — 83,865 2,696 1,301 23,453 688 — 112,003 
Total commercial real estate$194,679 $167,423 $141,159 $35,206 $68,064 $119,736 $3,327 $841 $730,435 
YTD gross charge-offs$— $— $116 $— $— $87 $— $— $203 
Construction, land development, land
Pass$14,821 $87,037 $120,397 $843 $769 $347 $— $— $224,214 
Classified— — — — — — — — — 
Total construction, land development, land$14,821 $87,037 $120,397 $843 $769 $347 $— $— $224,214 
YTD gross charge-offs$— $— $— $— $— $250 $— $— $250 
1-4 family residential
Pass$54,257 $41,135 $15,614 $11,408 $14,114 $18,889 $31,545 $2,286 $189,248 
Classified365 9 899 82 1,120 1,734 51 — 4,260 
Total 1-4 family residential$54,622 $41,144 $16,513 $11,490 $15,234 $20,623 $31,596 $2,286 $193,508 
YTD gross charge-offs$— $— $— $— $— $104 $— $— $104 
Farmland
Pass$9,001 $9,827 $4,068 $3,613 $2,330 $12,939 $458 $358 $42,594 
Classified— — — — — 839 — — 839 
Total farmland$9,001 $9,827 $4,068 $3,613 $2,330 $13,778 $458 $358 $43,433 
YTD gross charge-offs$— $— $— $— $— $— $— $— $— 
Commercial
Pass$335,153 $225,023 $82,460 $32,954 $7,901 $13,026 $417,434 $2,153 $1,116,104 
Classified4,409 1,524 10,608 5,478 956 928 23,657 — 47,560 
Total commercial$339,562 $226,547 $93,068 $38,432 $8,857 $13,954 $441,091 $2,153 $1,163,664 
YTD gross charge-offs$— $4,924 $7,950 $1,180 $276 $10,816 $— $— $25,146 
Factored receivables
Pass$1,458,558 $— $— $— $— $— $— $— $1,458,558 
Classified4,342 — — — — — — — 4,342 
Total factored receivables$1,462,900 $— $— $— $— $— $— $— $1,462,900 
YTD gross charge-offs$5,229 $1,408 $— $— $— $— $— $— $6,637 
Consumer
Pass$9,851 $1,162 $778 $226 $167 $314 $4,309 $— $16,807 
Classified— — — — — 12 — — 12 
Total consumer$9,851 $1,162 $778 $226 $167 $326 $4,309 $— $16,819 
YTD gross charge-offs$467 $81 $13 $6 $— $18 $— $— $585 
Mortgage warehouse
Pass$1,156,334 $— $— $— $— $— $— $— $1,156,334 
Classified— — — — — — — — — 
Total mortgage warehouse$1,156,334 $— $— $— $— $— $— $— $1,156,334 
YTD gross charge-offs$— $— $— $— $— $— $— $— $— 
Total loans
Pass$3,232,654 $531,607 $280,611 $81,554 $92,044 $141,798 $456,385 $5,638 $4,822,291 
Classified9,116 1,533 95,372 8,256 3,377 26,966 24,396 — 169,016 
Total loans$3,241,770 $533,140 $375,983 $89,810 $95,421 $168,764 $480,781 $5,638 $4,991,307 
YTD gross charge-offs$5,696 $6,413 $8,079 $1,186 $276 $11,275 $— $— $32,925 
Schedule of Loan Modifications
The following tables present the amortized cost basis of loan modifications to borrowers experiencing financial difficulty made during the reporting period:
Term Extension
Financial Effect
(Dollars in thousands)Amortized Cost % of PortfolioTerm Extended By
Three Months Ended September 30, 2026
Commercial real estate$61,847 9.3 %0.3 years
Commercial3,132 0.3 %2.4 years
$64,979 1.1 %
Three Months Ended September 30, 2025
Commercial3,550 0.3 %0.3 years
$3,550 0.1 %
Nine Months Ended September 30, 2026
Commercial real estate$62,975 9.5 %0.6 years
Commercial7,818 0.7 %2.3 years
$70,793 1.2 %
Nine Months Ended September 30, 2025
Commercial real estate$99,551 12.9 %0.6 years
1-4 family residential12 — %5.4 years
Commercial5,490 0.5 %0.7 years
$105,053 2.1 %
Term Extension and Payment Delay
Financial Effect
(Dollars in thousands)Amortized Cost % of PortfolioTerm Extended ByPayments Delayed By
Three Months Ended September 30, 2026
Commercial real estate$496 0.1 %0.3 years0.3 years
$496 — %
Three Months Ended September 30, 2025
Commercial real estate$16,091 2.1 %0.2 years0.2 years
$16,091 0.3 %
Nine Months Ended September 30, 2026
Commercial real estate$1,118 0.2 %0.8 years0.4 years
$1,118 — %
Nine Months Ended September 30, 2025
Commercial real estate$16,091 2.1 %0.6 years0.6 years
$16,091 0.3 %
Payment Delay
Financial Effect
(Dollars in thousands)Amortized Cost % of PortfolioPayments Delayed By
Nine Months Ended September 30, 2025
Commercial$523 — %0.5 years
$523 — %
The following table presents the payment status of loans that have been modified in the last twelve months:
September 30, 2026
(Dollars in thousands)CurrentPast Due
30-89 Days		Past Due
90 Days or More		Total
Commercial real estate$63,597 $— $37,554 $101,151 
Construction, land development, land— — — — 
1-4 family residential8 — — 8 
Farmland— — — — 
Commercial11,950 — 234 12,184 
Factored receivables— — — — 
Consumer— — — — 
Mortgage warehouse— — — — 
$75,555 $— $37,788 $113,343