v3.26.3
Loans and Allowance for Loan Losses (Tables)
 9 Months Ended
Sep. 30, 2026
Receivables [Abstract]  
Loans by Portfolio Segment
Loans in the accompanying consolidated balance sheets are classified as follows (in thousands):    
September 30, 2026December 31, 2025
Real estate loans:
Construction$542,996 $548,570 
1-4 family residential724,897 724,354 
Commercial owner-occupied360,611 319,536 
Commercial real estate2,416,412 2,393,280 
Commercial loans510,057 444,720 
Municipal loans367,711 346,720 
Loans to individuals36,005 40,811 
Total loans4,958,689 4,817,991 
Less: Allowance for loan losses46,858 45,100 
Net loans$4,911,831 $4,772,891 
Summary of loans by credit quality indicators and origination year
The following tables set forth the amortized cost basis by class of financing receivable and credit quality indicator for the periods presented (in thousands):
September 30, 2026Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisTotal
20262025202420232022Prior
Construction real estate:
Pass$141,162 $172,356 $54,141 $1,035 $8,039 $8,675 $118,618 $504,026 
Pass watch726 — — — — 8 20,575 21,309 
Special mention4,719 — 157 — — — 10,445 15,321 
Substandard— — 645 — 66 131 1,498 2,340 
Total construction real estate$146,607 $172,356 $54,943 $1,035 $8,105 $8,814 $151,136 $542,996 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
1-4 family residential real estate:
Pass$41,228 $66,002 $54,125 $56,848 $136,274 $364,800 $651 $719,928 
Pass watch— — — — — 36 — 36 
Special mention— — — — — 574 — 574 
Substandard— — 253 388 — 2,763 — 3,404 
Doubtful— 371 150 253 — 181 — 955 
Total 1-4 family residential real estate$41,228 $66,373 $54,528 $57,489 $136,274 $368,354 $651 $724,897 
Current period gross charge-offs$— $— $— $27 $— $13 $— $40 
Commercial owner-occupied:
Pass$80,994 $58,785 $27,735 $34,592 $45,218 $95,545 $1,762 $344,631 
Pass watch— — — — — 510 — 510 
Special mention— 249 — 294 — 671 — 1,214 
Substandard— 4,650 — — 1,024 3,083 5,499 14,256 
Total commercial real estate$80,994 $63,684 $27,735 $34,886 $46,242 $99,809 $7,261 $360,611 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Commercial real estate:
Pass$483,089 $463,976 $225,227 $296,846 $318,684 $335,631 $10,270 $2,133,723 
Pass watch— 40,189 — — 7,459 19 — 47,667 
Special mention— 33,373 — 1,328 — 197 — 34,898 
Substandard35,155 72,610 3,909 41,816 35,187 11,447 — 200,124 
Total commercial real estate$518,244 $610,148 $229,136 $339,990 $361,330 $347,294 $10,270 $2,416,412 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Commercial loans:
Pass$124,722 $82,890 $19,542 $13,817 $17,249 $6,972 $170,376 $435,568 
Pass watch— 71 134 43 — — 1 249 
Special mention386 313 11,945 31 211 80 37,237 50,203 
Substandard1,071 3,081 567 2,171 612 193 15,955 23,650 
Doubtful— — 150 25 148 64 — 387 
Total commercial loans$126,179 $86,355 $32,338 $16,087 $18,220 $7,309 $223,569 $510,057 
Current period gross charge-offs$— $528 $238 $106 $51 $34 $— $957 
Municipal loans:
Pass$60,336 $1,938 $1,639 $28,844 $51,318 $223,636 $— $367,711 
Total municipal loans$60,336 $1,938 $1,639 $28,844 $51,318 $223,636 $— $367,711 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Loans to individuals:
Pass$13,473 $8,843 $4,666 $2,646 $2,088 $2,459 $1,773 $35,948 
Special mention— — 2 — — — — 2 
Substandard— 11 14 11 — — 9 45 
Doubtful— — 10 — — — — 10 
Total loans to individuals$13,473 $8,854 $4,692 $2,657 $2,088 $2,459 $1,782 $36,005 
Current period gross charge-offs (1)
$1,015 $192 $30 $24 $— $7 $— $1,268 
Total loans$987,061 $1,009,708 $405,011 $480,988 $623,577 $1,057,675 $394,669 $4,958,689 
Total current period gross charge-offs (1)
$1,015 $720 $268 $157 $51 $54 $— $2,265 
(1) Includes $788,000 in charged off demand deposit overdrafts reported as 2026 originations.
December 31, 2025Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisTotal
20252024202320222021Prior
Construction real estate:
Pass$139,542 $96,548 $60,041 $3,649 $15,979 $5,939 $148,759 $470,457 
Pass watch9,343 1,494 — 31 — — 5,596 16,464 
Special mention47,492 — — — 407 58 13,468 61,425 
Substandard57 — — — 140 27 — 224 
Total construction real estate$196,434 $98,042 $60,041 $3,680 $16,526 $6,024 $167,823 $548,570 
Current period gross charge-offs$— $— $1 $— $— $— $— $1 
1-4 family residential real estate:
Pass$48,099 $50,197 $68,149 $143,782 $127,149 $278,702 $583 $716,661 
Special mention— — — — — 1,508 — 1,508 
Substandard2,380 — 112 — 658 2,199 269 5,618 
Doubtful— 165 265 — — 137 — 567 
Total 1-4 family residential real estate$50,479 $50,362 $68,526 $143,782 $127,807 $282,546 $852 $724,354 
Current period gross charge-offs$— $56 $— $— $— $13 $— $69 
Commercial owner-occupied:
Pass$58,592 $27,127 $38,350 $46,340 $53,831 $73,509 $2,672 $300,421 
Pass watch— — — 2,101 — 287 — 2,388 
Special mention— — — 2,285 — 6,132 — 8,417 
Substandard1,048 — — 129 6,162 971 — 8,310 
Total commercial real estate$59,640 $27,127 $38,350 $50,855 $59,993 $80,899 $2,672 $319,536 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Commercial real estate:
Pass$687,383 $186,142 $304,848 $338,165 $328,917 $183,000 $41,299 $2,069,754 
Pass watch21,226 — 49,316 32,339 — — — 102,881 
Special mention— — 2,691 76,116 — 251 — 79,058 
Substandard28,996 — — 101,201 5,935 5,455 — 141,587 
Total commercial real estate$737,605 $186,142 $356,855 $547,821 $334,852 $188,706 $41,299 $2,393,280 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Commercial loans:
Pass$124,358 $41,277 $27,101 $27,035 $8,388 $4,627 $189,290 $422,076 
Pass watch21 43 — — 36 — — 100 
Special mention204 202 177 469 590 3 532 2,177 
Substandard1,341 12,858 1,333 713 75 38 3,497 19,855 
Doubtful79 134 111 86 90 12 — 512 
Total commercial loans$126,003 $54,514 $28,722 $28,303 $9,179 $4,680 $193,319 $444,720 
Current period gross charge-offs$— $1,689 $409 $139 $139 $23 $— $2,399 
Municipal loans:
Pass$2,135 $1,800 $31,542 $54,168 $59,342 $197,733 $— $346,720 
Total municipal loans$2,135 $1,800 $31,542 $54,168 $59,342 $197,733 $— $346,720 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Loans to individuals:
Pass$16,861 $8,627 $4,980 $3,682 $2,524 $1,856 $2,049 $40,579 
Special mention8 — — — — — — 8 
Substandard3 1 8 2 — — — 14 
Doubtful185 20 3 1 — 1 — 210 
Total loans to individuals$17,057 $8,648 $4,991 $3,685 $2,524 $1,857 $2,049 $40,811 
Current period gross charge-offs$1,620 $34 $24 $68 $24 $18 $— $1,788 
Total loans$1,189,353 $426,635 $589,027 $832,294 $610,223 $762,445 $408,014 $4,817,991 
Total current period gross charge-offs (1)
$1,620 $1,779 $434 $207 $163 $54 $— $4,257 
(1) Includes $1.2 million in charged off demand deposit overdrafts reported as 2025 originations.
Aging of past due loans by class of loan
The following tables present the aging of the amortized cost basis in past due loans by class of loans (in thousands):
September 30, 2026
30-59 Days
Past Due
60-89 Days
Past Due
Greater than 90 Days Past Due
Total Past
Due
CurrentTotal
Real estate loans:
Construction$2,139 $233 $85 $2,457 $540,539 $542,996 
1-4 family residential1,550 440 1,464 3,454 721,443 724,897 
Commercial owner-occupied451 334 715 1,500 359,111 360,611 
Commercial real estate— 424 6,512 6,936 2,409,476 2,416,412 
Commercial loans860 1,335 1,995 4,190 505,867 510,057 
Municipal loans71 — — 71 367,640 367,711 
Loans to individuals23 — — 23 35,982 36,005 
Total$5,094 $2,766 $10,771 $18,631 $4,940,058 $4,958,689 
December 31, 2025
30-59 Days Past Due60-89 Days Past DueGreater than 90 Days
Past Due
Total Past
Due
CurrentTotal
Real estate loans:
Construction$416 $1,407 $— $1,823 $546,747 $548,570 
1-4 family residential4,324 693 1,284 6,301 718,053 724,354 
Commercial owner-occupied1,325 — — 1,325 318,211 319,536 
Commercial real estate322 5,447 — 5,769 2,387,511 2,393,280 
Commercial loans1,132 640 380 2,152 442,568 444,720 
Municipal loans— — — — 346,720 346,720 
Loans to individuals353 — — 353 40,458 40,811 
Total$7,872 $8,187 $1,664 $17,723 $4,800,268 $4,817,991 
Nonperforming assets by asset class
The following table sets forth the amortized cost basis of nonperforming assets for the periods presented (in thousands):
September 30, 2026December 31, 2025
Nonaccrual loans:
Real estate loans:
Construction$101 $18 
1-4 family residential3,353 4,939 
Commercial owner-occupied1,818 1,220 
Commercial real estate1,777 — 
Commercial loans3,230 4,091 
Loans to individuals25 218 
Total nonaccrual loans (1)
10,304 10,486 
Accruing loans past due more than 90 days5,155 — 
Restructured loans45 27,509 
OREO331 248 
Repossessed assets— — 
Total nonperforming assets$15,835 $38,243 

(1)    Includes $3.7 million and $2.0 million of restructured loans as of September 30, 2026 and December 31, 2025, respectively.
Restructured loans and type of modification
The following table sets forth the recorded balance of restructured loans and type of modification by class of loans during the periods presented (dollars in thousands):
Three Months Ended September 30, 2026
Amortization
 Period Extension		Interest Rate ReductionCombination Total ModificationsNumber of LoansPercent of Total Class
Commercial loans$259 $— $— $259 3 0.05 %
Loans to individuals— — 6 6 1 0.02 %
Total$259 $— $6 $265 4
Nine Months Ended September 30, 2026
Amortization
 Period Extension		Interest Rate ReductionCombinationTotal ModificationsNumber of LoansPercent of Total Class
Real estate loans:
1-4 family residential$253 $— $— $253 1 0.03 %
Commercial owner-occupied981 — — 981 1 0.27 %
Commercial loans886 — — 886 9 0.17 %
Loans to individuals— — 6 6 1 0.02 %
Total$2,120 $— $6 $2,126 12 

Three Months Ended September 30, 2025
Amortization
 Period Extension		Interest Rate ReductionCombinationTotal ModificationsNumber of LoansPercent of Total Class
Commercial loans$618 $— $— $618 3 0.14 %
Total$618 $— $— $618 3
Nine Months Ended September 30, 2025
Amortization
 Period Extension		Interest Rate ReductionCombinationTotal ModificationsNumber of LoansPercent of Total Class
Real estate loans:
Commercial real estate$27,501 $— $— $27,501 1 1.17 %
Commercial loans936 — — 936 11 0.22 %
Loans to individuals200 — — 200 2 0.46 %
Total$28,637 $— $— $28,637 14 
Allowance for loan losses activity by portfolio segment
The following tables detail activity in the allowance for loan losses by portfolio segment for the periods presented (in thousands):
Three Months Ended September 30, 2026
Real Estate
Construction
1-4 Family
Residential
Commercial Owner-OccupiedCommercial Real Estate
Commercial
Loans
Municipal
Loans
Loans to
Individuals
Total
Balance at beginning of period$6,521 $2,812 $5,867 $25,139 $5,115 $12 $129 $45,595 
Loans charged-off— (40)— — (229)— (458)(727)
Recoveries of loans charged-off— 54 3 — 817 — 170 1,044 
Net loans (charged-off)
recovered		— 14 3 — 588 — (288)317 
Provision for (reversal of) loan losses536 62 (488)(538)1,073 4 297 946 
Balance at end of period$7,057 $2,888 $5,382 $24,601 $6,776 $16 $138 $46,858 
Nine Months Ended September 30, 2026
Real Estate
Construction
1-4 Family
Residential
Commercial Owner-OccupiedCommercial Real Estate
Commercial
Loans
Municipal
Loans
Loans to
Individuals
Total
Balance at beginning of period$7,951 $2,830 $5,655 $23,750 $4,588 $13 $313 $45,100 
Loans charged-off— (40)— — (957)— (1,268)(2,265)
Recoveries of loans charged-off— 65 10 — 1,516 — 496 2,087 
Net loans (charged-off) recovered— 25 10 — 559 — (772)(178)
Provision for (reversal of) loan losses(894)33 (283)851 1,629 3 597 1,936 
Balance at end of period$7,057 $2,888 $5,382 $24,601 $6,776 $16 $138 $46,858 
Three Months Ended September 30, 2025
Real Estate
Construction
1-4 Family
Residential
Commercial Owner-OccupiedCommercial Real Estate
Commercial
Loans
Municipal
Loans
Loans to
Individuals
Total
Balance at beginning of period$6,194 $2,781 $5,417 $25,284 $4,433 $14 $298 $44,421 
Loans charged-off— — — — (833)— (502)(1,335)
Recoveries of loans charged-off— 9 4 — 255 — 223 491 
Net loans (charged-off)
recovered		— 9 4 — (578)— (279)(844)
Provision for (reversal of) loan losses 30 38 185 198 945 (1)322 1,717 
Balance at end of period$6,224 $2,828 $5,606 $25,482 $4,800 $13 $341 $45,294 
Nine Months Ended September 30, 2025
Real Estate
Construction1-4 Family
Residential		Commercial Owner-OccupiedCommercial Real EstateCommercial
Loans 		Municipal
Loans		Loans to
Individuals		Total
Balance at beginning of period$3,958 $2,780 $5,603 $29,923 $2,448 $16 $156 $44,884 
Loans charged-off (1)
— (69)— — (1,716)— (1,357)(3,142)
Recoveries of loans charged-off— 24 11 2 520 — 586 1,143 
Net loans (charged-off) recovered— (45)11 2 (1,196)— (771)(1,999)
Provision (reversal) for loan losses (2)
2,266 93 (8)(4,443)3,548 (3)956 2,409 
Balance at end of period$6,224 $2,828 $5,606 $25,482 $4,800 $13 $341 $45,294