v3.26.3
LOANS AND THE ALLOWANCE FOR CREDIT LOSSES (Tables)
 9 Months Ended
Sep. 30, 2026
Receivables [Abstract]  
Summary of the Company's loans
The following presents a summary of the Company’s loans at amortized cost as of the dates noted:
(dollars in thousands)
September 30,
2026		December 31,
2025
Cash, securities, and other$177,382 $164,726 
Consumer and other19,268 19,596 
Construction and development212,673 189,081 
1-4 family residential1,136,644 1,033,665 
Non-owner occupied CRE760,000 809,875 
Owner occupied CRE231,019 204,078 
Commercial and industrial272,705 225,281 
Total(1)
2,809,691 2,646,302 
Portfolio layer method basis adjustment for hedged portfolio(4,592)939 
Allowance for credit losses(20,785)(21,441)
Total, net$2,784,314 $2,625,800 
Loans accounted for under the fair value option(2)
1,146 3,182 
Loans, net$2,785,460 $2,628,982 
______________________________________
(1)Total loans include net unamortized loan origination fees of $0.7 million and $0.4 million as of September 30, 2026 and December 31, 2025, respectively, and net unamortized discounts on loan purchased or acquired of $2.4 million and $2.9 million as of September 30, 2026 and December 31, 2025, respectively.
(2)Includes $1.2 million and $3.2 million of unpaid principal balance of loans held for investment measured at fair value as of September 30, 2026 and December 31, 2025, respectively. Includes fair value adjustments on loans held for investment accounted for under the fair value option. See Note 12 – Fair Value.
Summary of aging analysis of the recorded investments in loans past due
The following presents, by class, an aging analysis of the amortized cost basis in loans past due as of the date noted (dollars in thousands):
September 30, 202630-59
Days
Past Due		60-89
Days
Past Due		90 or
More Days
Past Due		Total
Loans
Past Due		CurrentTotal
Amortized
Cost
Loans Accounted for Under the Fair Value Option(1)
Total Loans
Cash, securities, and other$— $— $1,704 $1,704 $175,678 $177,382 $— $177,382 
Consumer and other11 — — 11 19,257 19,268 1,146 20,414 
Construction and development— — — — 212,673 212,673 — 212,673 
1-4 family residential— — — — 1,136,644 1,136,644 — 1,136,644 
Non-owner occupied CRE— — — — 760,000 760,000 — 760,000 
Owner occupied CRE— — — — 231,019 231,019 — 231,019 
Commercial and industrial— — 11,364 11,364 261,341 272,705 — 272,705 
Total$11 $— $13,068 $13,079 $2,796,612 $2,809,691 $1,146 $2,810,837 
December 31, 202530-59
Days
Past Due		60-89
Days
Past Due		90 or
More Days
Past Due		Total
Loans
Past Due		CurrentTotal
Amortized
Cost
Loans Accounted for Under the Fair Value Option(1)
Total Loans
Cash, securities, and other$— $— $1,704 $1,704 $163,022 $164,726 $— $164,726 
Consumer and other— — — — 19,596 19,596 3,182 22,778 
Construction and development— — — — 189,081 189,081 — 189,081 
1-4 family residential417 — — 417 1,033,248 1,033,665 — 1,033,665 
Non-owner occupied CRE— — — — 809,875 809,875 — 809,875 
Owner occupied CRE— — — — 204,078 204,078 — 204,078 
Commercial and industrial2,267 — 14,683 16,950 208,331 225,281 — 225,281 
Total$2,684 $— $16,387 $19,071 $2,627,231 $2,646,302 $3,182 $2,649,484 
______________________________________
(1)Refer to Note 12 – Fair Value for additional information on the measurement of loans accounted for under the fair value option.
Summary modified loans
The following presents the amortized cost basis as of September 30, 2026 of the loans modified to borrowers experiencing financial difficulty disaggregated by class of financing receivable and type of concession granted during the nine months ended September 30, 2026.
(dollars in thousands)Principal forgivenessInterest rate reductionTerm extensionTotal class of financing receivable
Commercial and industrial$— $— $5,042 1.8 %
Total$— $— $5,042 
The following presents the financial effect by type of modification made to borrowers experiencing financial difficulty during the periods noted:
Nine Months Ended September 30, 2026
(dollars in thousands)Principal forgivenessWeighted average interest rate reductionWeighted average term extension
Commercial and industrial$— — %5 years
Schedule of recorded investment in non accrual loans by class The following presents the amortized cost basis of loans on non-accrual status and loans past due over 89 days still accruing by class as of the dates noted:
September 30, 2026
(dollars in thousands)Non-accrual loans with
no ACL
Total non-accrual loans(1)
Loans past due over 89 days still accruing
Cash, securities, and other$1,704 $1,704 $— 
Commercial and industrial— 11,521 — 
Total$1,704 $13,225 $— 
______________________________________
(1)As of September 30, 2026, the Company had an allowance of $2.2 million on non-accrual loans.
December 31, 2025
(dollars in thousands)Non-accrual loans with
no ACL
Total non-accrual loans(1)
Loans past due over 89 days still accruing
Cash, securities, and other$1,704 $1,704 $— 
Commercial and industrial790 14,855 — 
Total$2,494 $16,559 $— 
______________________________________
(1)As of December 31, 2025, the Company had an allowance of $3.3 million on non-accrual loans.
The following presents the amortized cost basis of collateral-dependent loans, which are individually analyzed to determine expected credit losses, by class of loans as of the date noted:
September 30, 2026
Collateral Dependent Loans
(dollars in thousands)Secured by Cash and
Securities		Secured by OtherTotal
Cash, securities, and other$1,704 $— $1,704 
Commercial and industrial— 11,521 11,521 
Total$1,704 $11,521 $13,225 
December 31, 2025
Collateral Dependent Loans
(dollars in thousands)Secured by Cash and
Securities		Secured by OtherTotal
Cash, securities, and other$1,704 $— $1,704 
Commercial and industrial— 14,855 14,855 
Total$1,704 $14,855 $16,559 
Schedule of activity in the Company's allowance for loan losses by portfolio class The following presents the activity in the ACL by portfolio segment during the periods presented:
(dollars in thousands)Cash,
securities
and other		Consumer
and
other		Construction
and
development		1-4
family
residential		Non-Owner
occupied
CRE		Owner
occupied
CRE		Commercial
and
industrial		Total
Changes in ACL for the three months ended September 30, 2026
Beginning balance$1,229 $413 $2,179 $6,072 $3,766 $924 $5,714 $20,297 
Provision for (release of) credit losses23 (131)182 145 (35)6 416 606 
Charge-offs— (123)— — — — — (123)
Recoveries— — — — — — 5 5 
Ending balance$1,252 $159 $2,361 $6,217 $3,731 $930 $6,135 $20,785 
Changes in ACL for the nine months ended September 30, 2026
Beginning balance$1,150 $138 $2,210 $5,846 $4,359 $846 $6,892 $21,441 
Provision for (release of) credit losses102 144 151 371 (628)84 (786)(562)
Charge-offs— (123)— — — — — (123)
Recoveries— — — — — — 29 29 
Ending balance$1,252 $159 $2,361 $6,217 $3,731 $930 $6,135 $20,785 
(dollars in thousands)Cash,
securities
and other		Consumer
and
other		Construction
and
development		1-4
family
residential		Non-Owner
occupied
CRE		Owner
occupied
CRE		Commercial
and
industrial		Total
Changes in ACL for the three months ended September 30, 2025
Beginning balance$1,150 $158 $3,651 $5,544 $4,323 $737 $3,431 $18,994 
(Release of) provision for credit losses(13)27 (1,487)254 (384)(12)3,847 2,232 
Charge-offs— — — — — — (430)(430)
Recoveries— 1 — 6 — — 164 171 
Ending balance$1,137 $186 $2,164 $5,804 $3,939 $725 $7,012 $20,967 
Changes in ACL for the nine months ended September 30, 2025
Beginning balance$410 $185 $5,184 $5,200 $4,340 $654 $2,357 $18,330 
Provision for (release of) credit losses727 (23)(3,020)591 (401)71 6,173 4,118 
Charge-offs— — — — — — (1,690)(1,690)
Recoveries— 24 — 13 — — 172 209 
Ending balance$1,137 $186 $2,164 $5,804 $3,939 $725 $7,012 $20,967 
Summary of recorded investment in the Company's loans by class and by credit quality indicator
The following presents the amortized cost basis of loans by credit quality indicator, by class of financing receivable, and year of origination for term loans as of September 30, 2026 and December 31, 2025. For revolving lines of credit that converted to term loans, if the conversion involved a credit decision, such loans are included in the origination year in which the credit decision was made. If revolving lines of credit converted to term loans without a credit decision, such lines of credit are included in the “Revolving lines of credit converted to term” column in the following table (dollars in thousands):
Term Loans Amortized Cost by Origination Year
September 30, 202620262025202420232022PriorRevolving Loans Amortized Cost BasisTotal
Cash, securities, and other
Pass$17,544 $49,951 $4,475 $379 $3,676 $21,148 $78,505 $175,678 
Special mention— — — — — — — — 
Substandard— — — — — — 1,704 1,704 
Doubtful— — — — — — — — 
Total Cash, securities, and other$17,544 $49,951 $4,475 $379 $3,676 $21,148 $80,209 $177,382 
Current year-to-date gross charge-offs$— $— $— $— $— $— $— $— 
Consumer and other
Pass$7,416 $28 $275 $— $224 $272 $11,053 $19,268 
Special mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Not rated(1)
— — 1 — 1,082 63 — 1,146 
Total Consumer and other$7,416 $28 $276 $— $1,306 $335 $11,053 $20,414 
Current year-to-date gross charge-offs$— $— $— $— $— $123 $— $123 
Construction and development
Pass$33,105 $58,695 $19,872 $42,701 $27,420 $6,354 $24,028 $212,175 
Special mention— — — — — — — — 
Substandard— — — 498 — — — 498 
Doubtful— — — — — — — — 
Total Construction and development$33,105 $58,695 $19,872 $43,199 $27,420 $6,354 $24,028 $212,673 
Current year-to-date gross charge-offs$— $— $— $— $— $— $— $— 
Term Loans Amortized Cost by Origination Year
September 30, 202620262025202420232022PriorRevolving Loans Amortized Cost BasisTotal
1-4 family residential
Pass$168,260 $166,230 $51,453 $58,114 $297,605 $241,302 $153,679 $1,136,643 
Special mention— — — — — — — — 
Substandard— — — — — — 1 1 
Doubtful— — — — — — — — 
Total 1-4 family residential$168,260 $166,230 $51,453 $58,114 $297,605 $241,302 $153,680 $1,136,644 
Current year-to-date gross charge-offs$— $— $— $— $— $— $— $— 
Non-Owner occupied CRE
Pass$44,197 $110,947 $58,004 $41,211 $248,277 $159,795 $914 $663,345 
Special mention— — 13,230 10,047 — 4,907 — 28,184 
Substandard— — 3,693 22,922 22,750 19,106 — 68,471 
Doubtful— — — — — — — — 
Total Non-Owner occupied CRE$44,197 $110,947 $74,927 $74,180 $271,027 $183,808 $914 $760,000 
Current year-to-date gross charge-offs$— $— $— $— $— $— $— $— 
Owner occupied CRE
Pass$43,064 $45,473 $3,599 $2,826 $26,365 $106,867 $2,825 $231,019 
Special mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Total Owner occupied CRE$43,064 $45,473 $3,599 $2,826 $26,365 $106,867 $2,825 $231,019 
Current year-to-date gross charge-offs$— $— $— $— $— $— $— $— 
Commercial and industrial
Pass$70,340 $37,272 $21,174 $2,688 $17,322 $25,285 $72,873 $246,954 
Special mention— 2,649 — — — — — 2,649 
Substandard1,184 — — 3,343 6,588 8,027 3,960 23,102 
Doubtful— — — — — — — — 
Total Commercial and industrial$71,524 $39,921 $21,174 $6,031 $23,910 $33,312 $76,833 $272,705 
Current year-to-date gross charge-offs$— $— $— $— $— $— $— $— 
Total pass$383,926 $468,596 $158,852 $147,919 $620,889 $561,023 $343,877 $2,685,082 
Total special mention— 2,649 13,230 10,047 — 4,907 — 30,833 
Total substandard1,184 — 3,693 26,763 29,338 27,133 5,665 93,776 
Total doubtful— — — — — — — — 
Total not rated(1)
— — 1 — 1,082 63 — 1,146 
Total$385,110 $471,245 $175,776 $184,729 $651,309 $593,126 $349,542 $2,810,837 
______________________________________
(1)Includes loans held for investment measured at fair value as of September 30, 2026. Includes fair value adjustments on loans held for investment accounted for under the fair value option.
Term Loans Amortized Cost by Origination Year
December 31, 202520252024202320222021PriorRevolving Loans Amortized Cost BasisTotal
Cash, securities, and other
Pass$49,565 $1,347 $1,805 $3,506 $9,260 $13,255 $84,284 $163,022 
Special mention— — — — — — — — 
Substandard— — — — — — 1,704 1,704 
Doubtful— — — — — — — — 
Total Cash, securities, and other$49,565 $1,347 $1,805 $3,506 $9,260 $13,255 $85,988 $164,726 
Current year-to-date gross charge-offs$— $— $— $— $— $— $— $— 
Consumer and other
Pass$212 $275 $— $765 $302 $512 $17,480 $19,546 
Special mention— — — — — — — — 
Substandard— — — — — — 50 50 
Doubtful— — — — — — — — 
Not rated(1)
— 1 — 2,874 268 39 — 3,182 
Total Consumer and other$212 $276 $— $3,639 $570 $551 $17,530 $22,778 
Current year-to-date gross charge-offs$— $— $— $— $— $— $— $— 
Construction and development
Pass$38,696 $53,248 $45,026 $23,589 $891 $9,560 $4,970 $175,980 
Special mention— — — 12,124 — — — 12,124 
Substandard— 461 516 — — — — 977 
Doubtful— — — — — — — — 
Total Construction and development$38,696 $53,709 $45,542 $35,713 $891 $9,560 $4,970 $189,081 
Current year-to-date gross charge-offs$— $— $— $— $— $— $— $— 
1-4 family residential
Pass$220,541 $52,322 $61,879 $318,753 $113,011 $152,134 $112,114 $1,030,754 
Special mention— — — 1,370 — 1,421 118 2,909 
Substandard— — — — — — 2 2 
Doubtful— — — — — — — — 
Total 1-4 family residential$220,541 $52,322 $61,879 $320,123 $113,011 $153,555 $112,234 $1,033,665 
Current year-to-date gross charge-offs$— $— $— $— $— $— $— $— 
Non-Owner occupied CRE
Pass$119,685 $59,473 $50,166 $296,138 $72,242 $112,279 $31,170 $741,153 
Special mention— — — — — — — — 
Substandard— 3,706 22,872 22,716 19,428 — — 68,722 
Doubtful— — — — — — — — 
Total Non-Owner occupied CRE$119,685 $63,179 $73,038 $318,854 $91,670 $112,279 $31,170 $809,875 
Current year-to-date gross charge-offs$— $— $— $— $— $— $— $— 
Owner occupied CRE
Pass$46,082 $4,105 $2,926 $36,535 $39,613 $73,657 $1,160 $204,078 
Special mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Total Owner occupied CRE$46,082 $4,105 $2,926 $36,535 $39,613 $73,657 $1,160 $204,078 
Current year-to-date gross charge-offs$— $— $— $111 $— $— $— $111 
Commercial and industrial
Pass$45,718 $22,601 $3,948 $22,911 $8,573 $35,145 $58,429 $197,325 
Special mention— — — — — — — — 
Substandard— — 5,025 6,874 1,762 9,857 4,438 27,956 
Doubtful— — — — — — — — 
Total Commercial and industrial$45,718 $22,601 $8,973 $29,785 $10,335 $45,002 $62,867 $225,281 
Current year-to-date gross charge-offs$— $— $— $1,403 $— $628 $— $2,031 
Term Loans Amortized Cost by Origination Year
December 31, 202520252024202320222021PriorRevolving Loans Amortized Cost BasisTotal
Total pass$520,499 $193,371 $165,750 $702,197 $243,892 $396,542 $309,607 $2,531,858 
Total special mention— — — 13,494 — 1,421 118 15,033 
Total substandard— 4,167 28,413 29,590 21,190 9,857 6,194 99,411 
Total doubtful— — — — — — — — 
Total not rated(1)
— 1 — 2,874 268 39 — 3,182 
Total$520,499 $197,539 $194,163 $748,155 $265,350 $407,859 $315,919 $2,649,484 
______________________________________
(1)Includes loans held for investment measured at fair value as of December 31, 2025. Includes fair value adjustments on loans held for investment accounted for under the fair value option.