The above table reflects the loan portfolio at the amortized cost basis for the periods September 30, 2026, and December 31, 2025, to include net deferred costs of $104.1 million and $97.0 million, respectively, and unamortized discount related to loans acquired of $159.3 million and $259.5 million, respectively. Accrued interest receivables of $198.7 million and $186.5 million, respectively, are accounted for separately and reported in other assets for the periods September 30, 2026, and December 31, 2025.

For a description of the Company’s loan risk grading system, including the definitions of Pass, Special Mention, Substandard, and Doubtful, refer to Note 4 to the Consolidated Financial Statements in the 2025 Form 10‑K.

The following table presents the credit risk profile by risk grade of commercial loans by origination year as of and for the period ending September 30, 2026:


(Dollars in thousands)	Term Loans Amortized Cost Basis by Origination Year
As of September 30, 2026	2026		2025		2024		2023		2022		Prior		Revolving		Total
Construction and land development
Risk rating:
Pass	$	789,902	$	948,798	$	327,113	$	50,535	$	67,893	$	56,452	$	155,970	$	2,396,663
Special mention		3,427		1,643		11,750		25,038		—		526		39,635		82,019
Substandard		5,205		11,767		4,998		30,673		8,227		5,520		1,543		67,933
Doubtful		—		—		—		—		—		—		—		—
Total Construction and land development	$	798,534	$	962,208	$	343,861	$	106,246	$	76,120	$	62,498	$	197,148	$	2,546,615
Construction and land development
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	222	$	—	$	222

Commercial non-owner-occupied
Risk rating:
Pass	$	4,061,388	$	2,553,648	$	1,054,602	$	1,018,106	$	3,220,673	$	3,953,541	$	277,832	$	16,139,790
Special mention		83,497		30,977		16,170		29,776		190,161		84,872		1,070		436,523
Substandard		64,504		107,259		37,841		187,665		674,207		248,055		677		1,320,208
Doubtful		—		—		—		—		—		4		—		4
Total Commercial non-owner-occupied	$	4,209,389	$	2,691,884	$	1,108,613	$	1,235,547	$	4,085,041	$	4,286,472	$	279,579	$	17,896,525
Commercial non-owner-occupied
Current-period gross charge-offs	$	—	$	—	$	—	$	969	$	5,173	$	149	$	—	$	6,291

Commercial Owner-Occupied
Risk rating:
Pass	$	1,327,245	$	1,241,310	$	674,706	$	563,621	$	1,026,814	$	2,652,289	$	114,217	$	7,600,202
Special mention		416		4,038		3,591		16,151		10,557		17,327		373		52,453
Substandard		9,429		22,790		28,865		39,455		79,069		118,311		1,221		299,140
Doubtful		—		8		4		—		—		4		—		16
Total commercial owner-occupied	$	1,337,090	$	1,268,146	$	707,166	$	619,227	$	1,116,440	$	2,787,931	$	115,811	$	7,951,811
Commercial owner-occupied
Current-period gross charge-offs	$	—	$	—	$	11	$	134	$	188	$	365	$	—	$	698

Commercial and industrial
Risk rating:
Pass	$	2,564,156	$	1,665,982	$	783,717	$	432,559	$	636,818	$	897,714	$	2,404,651	$	9,385,597
Special mention		5,959		19,034		3,450		7,953		2,928		2,553		14,431		56,308
Substandard		35,881		39,081		66,501		42,768		35,339		50,667		92,203		362,440
Doubtful		4		29		40		65		70		24		30		262
Total commercial and industrial	$	2,606,000	$	1,724,126	$	853,708	$	483,345	$	675,155	$	950,958	$	2,511,315	$	9,804,607
Commercial and industrial
Current-period gross charge-offs	$	1,569	$	6,753	$	7,585	$	4,293	$	1,590	$	1,721	$	2,030	$	25,541

Other income producing property
Risk rating:
Pass	$	196,916	$	134,165	$	98,726	$	58,900	$	228,389	$	261,111	$	62,757	$	1,040,964
Special mention		777		1,498		256		44		2,346		1,727		428		7,076
Substandard		2,569		831		307		1,532		10,543		21,028		228		37,038
Doubtful		—		—		—		—		—		—		—		—
Total other income producing property	$	200,262	$	136,494	$	99,289	$	60,476	$	241,278	$	283,866	$	63,413	$	1,085,078
Other income producing property
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Consumer owner-occupied
Risk rating:
Pass	$	9,043	$	14,741	$	1,692	$	17,435	$	10,158	$	29,422	$	50,396	$	132,887
Special mention		—		99		—		126		—		75		95		395
Substandard		439		1,236		—		365		—		—		646		2,686
Doubtful		—		—		—		—		—		—		—		—
Total Consumer owner-occupied	$	9,482	$	16,076	$	1,692	$	17,926	$	10,158	$	29,497	$	51,137	$	135,968
Consumer owner-occupied
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Other loans
Risk rating:
Pass	$	6,639	$	—	$	—	$	—	$	—	$	—	$	—	$	6,639
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total other loans	$	6,639	$	—	$	—	$	—	$	—	$	—	$	—	$	6,639
Other loans
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Total Commercial Loans
Risk rating:
Pass	$	8,955,289	$	6,558,644	$	2,940,556	$	2,141,156	$	5,190,745	$	7,850,529	$	3,065,823	$	36,702,742
Special mention		94,076		57,289		35,217		79,088		205,992		107,080		56,032		634,774
Substandard		118,027		182,964		138,512		302,458		807,385		443,581		96,518		2,089,445
Doubtful		4		37		44		65		70		32		30		282
Total Commercial Loans	$	9,167,396	$	6,798,934	$	3,114,329	$	2,522,767	$	6,204,192	$	8,401,222	$	3,218,403	$	39,427,243
Commercial Loans
Current-period gross charge-offs	$	1,569	$	6,753	$	7,596	$	5,396	$	6,951	$	2,457	$	2,030	$	32,752

The following table presents the credit risk profile by risk grade of commercial loans by origination year as of and for the period ending December 31, 2025:


(Dollars in thousands)	Term Loans Amortized Cost Basis by Origination Year
As of December 31, 2025	2025		2024		2023		2022		2021		Prior		Revolving		Total
Construction and land development
Risk rating:
Pass	$	862,035	$	575,253	$	264,370	$	175,486	$	57,814	$	40,977	$	147,911	$	2,123,846
Special mention		706		137		1,815		20,580		335		510		—		24,083
Substandard		5,292		7,512		32,431		5,898		892		5,564		—		57,589
Doubtful		—		—		—		—		—		—		—		—
Total Construction and land development	$	868,033	$	582,902	$	298,616	$	201,964	$	59,041	$	47,051	$	147,911	$	2,205,518
Construction and land development
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	16	$	—	$	—	$	16

Commercial non-owner-occupied
Risk rating:
Pass	$	2,564,868	$	1,161,720	$	1,304,297	$	3,828,512	$	2,440,726	$	2,996,445	$	185,751	$	14,482,319
Special mention		51,864		17,084		100,316		383,957		27,680		96,579		10,484		687,964
Substandard		169,713		28,225		100,542		598,777		357,340		226,461		415		1,481,473
Doubtful		—		—		—		—		1		3		—		4
Total Commercial non-owner-occupied	$	2,786,445	$	1,207,029	$	1,505,155	$	4,811,246	$	2,825,747	$	3,319,488	$	196,650	$	16,651,760
Commercial non-owner-occupied
Current-period gross charge-offs	$	—	$	—	$	4,565	$	1,237	$	18,033	$	9,800	$	—	$	33,635

Commercial Owner-Occupied
Risk rating:
Pass	$	1,210,501	$	777,109	$	634,593	$	1,105,730	$	1,110,749	$	2,218,753	$	102,835	$	7,160,270
Special mention		4,609		1,075		12,204		10,424		5,539		17,866		438		52,155
Substandard		19,657		38,394		52,341		115,676		33,813		102,965		1,703		364,549
Doubtful		9		4		—		—		—		4		—		17
Total commercial owner-occupied	$	1,234,776	$	816,582	$	699,138	$	1,231,830	$	1,150,101	$	2,339,588	$	104,976	$	7,576,991
Commercial owner-occupied
Current-period gross charge-offs	$	1,095	$	—	$	874	$	1,628	$	184	$	1,317	$	50	$	5,148

Commercial and industrial
Risk rating:
Pass	$	2,644,081	$	1,056,432	$	613,536	$	876,480	$	410,578	$	771,994	$	2,396,981	$	8,770,082
Special mention		5,089		2,283		20,226		6,023		2,955		2,208		14,387		53,171
Substandard		10,054		50,362		52,210		52,356		37,921		31,469		123,611		357,983
Doubtful		—		3		43		68		50		2		6		172
Total commercial and industrial	$	2,659,224	$	1,109,080	$	686,015	$	934,927	$	451,504	$	805,673	$	2,534,985	$	9,181,408
Commercial and industrial
Current-period gross charge-offs	$	23,240	$	2,947	$	4,351	$	9,157	$	12,680	$	11,844	$	10,007	$	74,226

Other income producing property
Risk rating:
Pass	$	157,404	$	114,264	$	88,883	$	272,672	$	173,188	$	210,459	$	55,663	$	1,072,533
Special mention		2,020		463		145		269		542		2,897		602		6,938
Substandard		1,936		420		1,918		15,540		2,294		17,247		548		39,903
Doubtful		—		—		—		—		—		—		—		—
Total other income producing property	$	161,360	$	115,147	$	90,946	$	288,481	$	176,024	$	230,603	$	56,813	$	1,119,374
Other income producing property
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Consumer owner-occupied
Risk rating:
Pass	$	15,587	$	3,687	$	20,410	$	10,949	$	11,145	$	25,248	$	31,042	$	118,068
Special mention		118		745		131		—		—		—		—		994
Substandard		1,376		209		—		—		—		158		588		2,331
Doubtful		—		—		—		—		—		1		—		1
Total Consumer owner-occupied	$	17,081	$	4,641	$	20,541	$	10,949	$	11,145	$	25,407	$	31,630	$	121,394
Consumer owner-occupied
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Other loans
Risk rating:
Pass	$	2,366	$	—	$	—	$	—	$	—	$	—	$	—	$	2,366
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total other loans	$	2,366	$	—	$	—	$	—	$	—	$	—	$	—	$	2,366
Other loans
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Total Commercial Loans
Risk rating:
Pass	$	7,456,842	$	3,688,465	$	2,926,089	$	6,269,829	$	4,204,200	$	6,263,876	$	2,920,183	$	33,729,484
Special mention		64,406		21,787		134,837		421,253		37,051		120,060		25,911		825,305
Substandard		208,028		125,122		239,442		788,247		432,260		383,864		126,865		2,303,828
Doubtful		9		7		43		68		51		10		6		194
Total Commercial Loans	$	7,729,285	$	3,835,381	$	3,300,411	$	7,479,397	$	4,673,562	$	6,767,810	$	3,072,965	$	36,858,811
Commercial Loans
Current-period gross charge-offs	$	24,335	$	2,947	$	9,790	$	12,022	$	30,913	$	22,961	$	10,057	$	113,025

For the consumer segment, delinquency of a loan is determined by past due status. Consumer loans are automatically placed on nonaccrual status once the loan is 90 days past due. Construction and land development loans are on 1-4 family residential properties and lots.

The following table presents the credit risk profile by past due status of consumer loans by origination year as of and for the period ending September 30, 2026:


(Dollars in thousands)	Term Loans Amortized Cost Basis by Origination Year
As of September 30, 2026	2026		2025		2024		2023		2022		Prior		Revolving		Total
Consumer owner-occupied
Days past due:
Current	$	1,421,708	$	1,171,378	$	573,569	$	863,864	$	2,221,827	$	2,905,421	$	—	$	9,157,767
30 days past due		302		5,841		5,307		4,352		4,129		5,477		—		25,408
60 days past due		—		1,702		960		2,484		900		1,829		—		7,875
90 days past due		155		5,382		10,206		12,482		4,130		10,791		—		43,146
Total Consumer owner-occupied	$	1,422,165	$	1,184,303	$	590,042	$	883,182	$	2,230,986	$	2,923,518	$	—	$	9,234,196
Consumer owner-occupied
Current-period gross charge-offs	$	43	$	839	$	1,559	$	1,304	$	324	$	44	$	—	$	4,113

Home equity loans
Days past due:
Current	$	810	$	1,720	$	2,105	$	1,502	$	2,541	$	14,089	$	1,939,461	$	1,962,228
30 days past due		—		—		277		50		—		630		3,760		4,717
60 days past due		—		—		218		—		—		416		2,242		2,876
90 days past due		—		51		666		643		393		742		925		3,420
Total Home equity loans	$	810	$	1,771	$	3,266	$	2,195	$	2,934	$	15,877	$	1,946,388	$	1,973,241
Home equity loans
Current-period gross charge-offs	$	—	$	—	$	117	$	10	$	—	$	106	$	35	$	268

Consumer
Days past due:
Current	$	198,153	$	140,944	$	97,014	$	121,514	$	118,030	$	174,064	$	93,768	$	943,487
30 days past due		210		324		307		405		576		707		31		2,560
60 days past due		34		173		324		87		98		321		211		1,248
90 days past due		3		74		253		253		414		1,308		40		2,345
Total consumer	$	198,400	$	141,515	$	97,898	$	122,259	$	119,118	$	176,400	$	94,050	$	949,640
Consumer
Current-period gross charge-offs	$	58	$	611	$	540	$	751	$	200	$	186	$	4,422	$	6,768

Construction and land development
Days past due:
Current	$	132,569	$	118,774	$	34,864	$	18,096	$	33,317	$	32,604	$	—	$	370,224
30 days past due		—		—		—		—		—		—		—		—
60 days past due		—		—		—		—		—		—		—		—
90 days past due		—		—		—		293		—		—		—		293
Total Construction and land development	$	132,569	$	118,774	$	34,864	$	18,389	$	33,317	$	32,604	$	—	$	370,517
Construction and land development
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Other income producing property
Days past due:
Current	$	1,269	$	3,918	$	1,182	$	7,198	$	46,793	$	37,399	$	97	$	97,856
30 days past due		—		—		—		—		—		122		—		122
60 days past due		—		—		—		—		—		—		—		—
90 days past due		—		—		3		—		258		17		—		278
Total other income producing property	$	1,269	$	3,918	$	1,185	$	7,198	$	47,051	$	37,538	$	97	$	98,256
Other income producing property
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Total Consumer Loans
Days past due:
Current	$	1,754,509	$	1,436,734	$	708,734	$	1,012,174	$	2,422,508	$	3,163,577	$	2,033,326	$	12,531,562
30 days past due		512		6,165		5,891		4,807		4,705		6,936		3,791		32,807
60 days past due		34		1,875		1,502		2,571		998		2,566		2,453		11,999
90 days past due		158		5,507		11,128		13,671		5,195		12,858		965		49,482
Total Consumer Loans	$	1,755,213	$	1,450,281	$	727,255	$	1,033,223	$	2,433,406	$	3,185,937	$	2,040,535	$	12,625,850
Consumer Loans
Current-period gross charge-offs	$	101	$	1,450	$	2,216	$	2,065	$	524	$	336	$	4,457	$	11,149

The following table presents the credit risk profile by past due status of total loans by origination year as of and for the period ending September 30, 2026:


(Dollars in thousands)	Term Loans Amortized Cost Basis by Origination Year
As of September 30, 2026	2026		2025		2024		2023		2022		Prior		Revolving		Total
Total Loans	$	10,922,609	$	8,249,215	$	3,841,584	$	3,555,990	$	8,637,598	$	11,587,159	$	5,258,938	$	52,053,093

Current-period gross charge-offs	$	1,670	$	8,203	$	9,812	$	7,461	$	7,475	$	2,793	$	6,487	$	43,901

The following table presents the credit risk profile by past due status of consumer loans by origination year as of and for the period ending December 31, 2025:


(Dollars in thousands)	Term Loans Amortized Cost Basis by Origination Year
As of December 31, 2025	2025		2024		2023		2022		2021		Prior		Revolving		Total
Consumer owner-occupied
Days past due:
Current	$	1,182,075	$	647,315	$	1,014,555	$	2,407,217	$	1,639,720	$	1,543,231	$	—	$	8,434,113
30 days past due		2,060		3,805		5,472		3,232		3,926		3,369		—		21,864
60 days past due		685		2,557		2,670		620		559		1,626		—		8,717
90 days past due		1,156		9,661		8,967		6,584		1,524		4,454		—		32,346
Total Consumer owner-occupied	$	1,185,976	$	663,338	$	1,031,664	$	2,417,653	$	1,645,729	$	1,552,680	$	—	$	8,497,040
Consumer owner-occupied
Current-period gross charge-offs	$	122	$	926	$	981	$	458	$	53	$	107	$	—	$	2,647

Home equity loans
Days past due:
Current	$	1,627	$	5,549	$	2,618	$	3,463	$	1,308	$	13,961	$	1,794,239	$	1,822,765
30 days past due		50		26		160		199		—		502		2,752		3,689
60 days past due		—		50		212		74		—		108		1,615		2,059
90 days past due		—		218		577		886		138		610		847		3,276
Total Home equity loans	$	1,677	$	5,843	$	3,567	$	4,622	$	1,446	$	15,181	$	1,799,453	$	1,831,789
Home equity loans
Current-period gross charge-offs	$	—	$	66	$	—	$	70	$	—	$	415	$	—	$	551

Consumer
Days past due:
Current	$	193,165	$	134,608	$	156,266	$	154,801	$	62,652	$	156,314	$	91,731	$	949,537
30 days past due		55		117		304		271		205		1,295		75		2,322
60 days past due		41		70		427		50		—		268		65		921
90 days past due		67		177		532		365		47		1,288		10		2,486
Total consumer	$	193,328	$	134,972	$	157,529	$	155,487	$	62,904	$	159,165	$	91,881	$	955,266
Consumer
Current-period gross charge-offs	$	390	$	912	$	910	$	776	$	114	$	2,655	$	6,007	$	11,764

Construction and land development
Days past due:
Current	$	129,749	$	80,514	$	27,590	$	53,698	$	26,284	$	24,390	$	—	$	342,225
30 days past due		—		—		—		—		—		—		—		—
60 days past due		—		—		—		—		—		—		—		—
90 days past due		—		—		154		463		—		—		—		617
Total Construction and land development	$	129,749	$	80,514	$	27,744	$	54,161	$	26,284	$	24,390	$	—	$	342,842
Construction and land development
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Other income producing property
Days past due:
Current	$	3,638	$	2,037	$	7,756	$	50,859	$	16,477	$	31,521	$	86	$	112,374
30 days past due		—		—		—		—		—		—		—		—
60 days past due		—		—		—		—		—		16		—		16
90 days past due		—		3		—		258		—		128		—		389
Total other income producing property	$	3,638	$	2,040	$	7,756	$	51,117	$	16,477	$	31,665	$	86	$	112,779
Other income producing property
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Total Consumer Loans
Days past due:
Current	$	1,510,254	$	870,023	$	1,208,785	$	2,670,038	$	1,746,441	$	1,769,417	$	1,886,056	$	11,661,014
30 days past due		2,165		3,948		5,936		3,702		4,131		5,166		2,827		27,875
60 days past due		726		2,677		3,309		744		559		2,018		1,680		11,713
90 days past due		1,223		10,059		10,230		8,556		1,709		6,480		857		39,114
Total Consumer Loans	$	1,514,368	$	886,707	$	1,228,260	$	2,683,040	$	1,752,840	$	1,783,081	$	1,891,420	$	11,739,716
Consumer Loans
Current-period gross charge-offs	$	512	$	1,904	$	1,891	$	1,304	$	167	$	3,177	$	6,007	$	14,962

The following table presents the credit risk profile by past due status of total loans by origination year as of and for the period ending December 31, 2025:


(Dollars in thousands)	Term Loans Amortized Cost Basis by Origination Year
As of December 31, 2025	2025		2024		2023		2022		2021		Prior		Revolving		Total
Total Loans	$	9,243,653	$	4,722,088	$	4,528,671	$	10,162,437	$	6,426,402	$	8,550,891	$	4,964,385	$	48,598,527

Current-period gross charge-offs	$	24,847	$	4,851	$	11,681	$	13,326	$	31,080	$	26,138	$	16,064	$	127,987

The following table presents an aging analysis of past due accruing loans, segregated by class, as of September 30, 2026 and December 31, 2025:


(Dollars in thousands)	30 - 59 Days Past Due		60 - 89 Days Past Due		90+ Days Past Due		Total Past Due		Current		Non-Accruing		Total Loans
September 30, 2026
Construction and land development	$	3,498	$	17	$	—	$	3,515	$	2,908,666	$	4,951	$	2,917,132
Commercial non-owner-occupied		3,243		14,553		2		17,798		17,821,892		56,835		17,896,525
Commercial owner-occupied real estate		10,860		4,270		1,346		16,476		7,899,811		35,524		7,951,811
Consumer owner-occupied		16,558		553		409		17,520		9,267,581		85,063		9,370,164
Home equity loans		4,155		1,756	—			5,911		1,958,660		8,670		1,973,241
Commercial and industrial		45,714		7,635		8,532		61,881		9,654,895		87,831		9,804,607
Other income producing property		1,043		211		340		1,594		1,179,958		1,782		1,183,334
Consumer		2,409		1,018	—			3,427		942,534		3,679		949,640
Other loans	—		—		—		—			6,639	—			6,639
	$	87,480	$	30,013	$	10,629	$	128,122	$	51,640,636	$	284,335	$	52,053,093
December 31, 2025
Construction and land development	$	3,018	$	472	$	139	$	3,629	$	2,537,171	$	7,560	$	2,548,360
Commercial non-owner-occupied		8,457		304		408		9,169		16,575,180		67,411		16,651,760
Commercial owner-occupied real estate		14,821		4,651		865		20,337		7,516,697		39,957		7,576,991
Consumer owner-occupied		16,301		901		—		17,202		8,527,681		73,551		8,618,434
Home equity loans		2,739		1,226		1		3,966		1,819,479		8,344		1,831,789
Commercial and industrial		24,890		5,860		2,913		33,663		9,052,979		94,766		9,181,408
Other income producing property		1,582		827		615		3,024		1,227,020		2,109		1,232,153
Consumer		2,002		793		—		2,795		949,014		3,457		955,266
Other loans		—		—		—		—		2,366		—		2,366
	$	73,810	$	15,034	$	4,941	$	93,785	$	48,207,587	$	297,155	$	48,598,527

There is no interest income recognized during the period on nonaccrual loans. The Company follows its nonaccrual policy by reversing contractual interest income in the income statement when the Company places a loan on nonaccrual status. Loans on nonaccrual status in which there is no allowance assigned are individually evaluated loans that do not carry a specific reserve. See Note 1 — Summary of Significant Accounting Policies of the 2025 Form 10-K for further detailed descriptions on individually evaluated loans.

The Bank designates individually evaluated loans on non-accrual with a net book balance exceeding the designated threshold as collateral dependent loans. Collateral dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. These loans do not share common risk characteristics and are not included within the collectively evaluated loans for determining the ACL. The Bank has adopted the collateral maintenance practical expedient to measure the ACL based on the fair value of collateral. The ACL is calculated on an individual loan basis based on the shortfall between the fair value of the loan's collateral, which is adjusted for selling costs, and amortized cost. If the fair value of the collateral exceeds the amortized cost, no allowance is required. The Bank’s threshold for individually evaluated loans is $1.0 million. The changes above in collateral percentage are generally due to appraisal value updates or changes in the number of loans within the asset class and collateral type. Overall collateral dependent loans decreased $21.1 million during the nine months ended September 30, 2026.

Loans on nonaccrual status at the date of modification are initially classified as nonaccrual. Loans on accruing status at the date of modification are initially classified as accruing if the note is reasonably assured of repayment and performance is expected in accordance with its modified terms. Such loans may be designated as nonaccrual loans subsequent to the modification date if reasonable doubt exists as to the collection of interest or principal under the modification agreement. Nonaccrual loans are returned to accruing status when there is economic substance to the modification, there is documented credit evaluation of the borrower’s financial condition, the remaining balance is reasonably assured of repayment in accordance with its modified terms, and the borrower has demonstrated sustained repayment performance in accordance with the modified terms for a reasonable period of time (generally a minimum of six months). See Note 1 — Summary of Significant Accounting Policies of the 2025 Form 10-K for how such modifications are factored into the determination of the ACL for the periods presented above.

The following tables present loans designated as modifications made to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2026, and 2025, respectively. The loans are segregated by type of modification and asset class, indicating the financial effect of the modifications. There were no interest rate reduction modifications for the three months ended September 30, 2026 and 2025. There were no combination interest rate reduction and payment delay modifications for the three and nine months ended September 30, 2026. There were no combination term extension and payment delay modifications modifications for the three months ended September 30, 2026 and 2025.


	Three Months Ended September 30,
	2026							2025
(Dollars in thousands)	Amortized Cost		% of Total Asset Class			Increase in Weighted Average Life of Loan		Amortized Cost		% of Total Asset Class			Increase in Weighted Average Life of Loan
Term extension
Construction and land development	$	—		—			—	$	309		0.01	%	4 months
Commercial non-owner occupied		72,973		0.41	%	4 months			30,697		0.19	%	6 months
Commercial owner-occupied real estate		—		—			—		7,563		0.10	%	21 months
Consumer owner-occupied		566		0.01	%	7 months			2,679		0.03	%	4 months
Commercial and industrial		24,336		0.25	%	8 months			6,768		0.08	%	3 months
Other income producing property		2,231		0.19	%	5 months			—		—			—
Total term extensions	$	100,106						$	48,016


	Nine Months Ended September 30,
	2026							2025
(Dollars in thousands)	Amortized Cost		% of Total Asset Class			Increase in Weighted Average Life of Loan		Amortized Cost		% of Total Asset Class			Increase in Weighted Average Life of Loan
Term extension
Construction and land development	$	—		—			—	$	592		0.02	%	6 months
Commercial non-owner-occupied		85,065		0.48	%	5 months			30,697		0.19	%	6 months
Commercial owner-occupied real estate		3,196		0.04	%	7 months			7,563		0.10	%	21 months
Consumer owner-occupied		4,146		0.04	%	5 months			3,962		0.05	%	6 months
Commercial and industrial		32,538		0.33	%	7 months			9,086		0.11	%	3 months
Other income producing property		2,897		0.24	%	5 months			—		—			—
Total term extensions	$	127,842						$	51,900


	Three Months Ended September 30,
	2026							2025
(Dollars in thousands)	Amortized Cost		% of Total Asset Class			Weighted Average of Months Payments Were Deferred		Amortized Cost		% of Total Asset Class			Weighted Average of Months Payments Were Deferred
Other-than-insignificant payment delay
Construction and land development	$	—		—			—	$	26,218		0.98	%	6 months
Commercial non-owner occupied		52,990		0.30	%	9 months			22,833		0.14	%	8 months
Total payment delays	$	52,990						$	49,051


	Nine Months Ended September 30,
	2026							2025
(Dollars in thousands)	Amortized Cost		% of Total Asset Class			Weighted Average of Months Payments Were Deferred		Amortized Cost		% of Total Asset Class			Weighted Average of Months Payments Were Deferred
Other-than-insignificant payment delay
Construction and land development	$	—		—			—	$	26,218		0.98	%	6 months
Commercial non-owner-occupied		118,357		0.66	%	9 months			22,833		0.14	%	8 months
Commercial owner-occupied real estate		3,268		0.04	%	6 months			5,704		0.08	%	7 months
Commercial and industrial		7,125		0.07	%	9 months			1,610		0.02	%	6 months
Other income producing property		264		0.02	%	60 months			—		—			—
Total payment delays	$	129,014						$	56,365


	Three Months Ended September 30,
	2026						2025
(Dollars in thousands)	Amortized Cost		Reduction in Weighted Average Contractual Interest Rate			Increase in Weighted Average Life of Loan	Amortized Cost		Reduction in Weighted Average Contractual Interest Rate			Increase in Weighted Average Life of Loan
Combination - Term Extension and Interest Rate Reduction
Consumer owner-occupied	$	464		0.75	%	16 months	$	917		1.83	%	3 months
Total term extension and interest rate reduction combinations	$	464					$	917


	Nine Months Ended September 30,
	2026						2025
(Dollars in thousands)	Amortized Cost		Reduction in Weighted Average Contractual Interest Rate			Increase in Weighted Average Life of Loan	Amortized Cost		Reduction in Weighted Average Contractual Interest Rate			Increase in Weighted Average Life of Loan
Combination - Term Extension and Interest Rate Reduction
Commercial non-owner occupied	$	22,714		0.50	%	37 months	$	—		—			—
Consumer owner-occupied		1,671		0.60	%	31 months		1,769		2.40	%	6 months
Total term extension and interest rate reduction combinations	$	24,385					$	1,769


	Three Months Ended September 30,
	2026						2025
(Dollars in thousands)	Amortized Cost		Reduction in Weighted Average Contractual Interest Rate		Increase in Weighted Average Amortization Term		Amortized Cost		Reduction in Average Contractual Interest Rate			Increase in Weighted Average Amortization Term
Combination - Interest Rate Reduction and Payment Delay
Commercial non-owner occupied	$	—		—		—	$	29,802		0.25	%	8 months
Total interest rate reduction and payment delay combinations	$	—					$	29,802


	Nine Months Ended September 30,
	2026						2025
(Dollars in thousands)	Amortized Cost		Reduction in Weighted Average Contractual Interest Rate		Increase in Weighted Average Amortization Term		Amortized Cost		Reduction in Average Contractual Interest Rate			Increase in Weighted Average Amortization Term
Combination - Interest Rate Reduction and Payment Delay
Commercial non-owner occupied	$	—		—		—	$	29,802		0.25	%	8 months
Commercial and industrial		—		—		—		1,172		0.75	%	12 months
Total interest rate reduction and payment delay combinations	$	—					$	30,974

The Bank on occasion will enter into modification agreements which extend the maturity payoff on a loan or reduce the interest rate for borrowers willing to continue to pay, to minimize losses for the Bank. At September 30, 2026, the Company had $7.1 million in remaining commitments to lend additional funds on loans to borrowers experiencing financial difficulty and modified during the current reporting period.

The following table presents the changes in status of loans modified within the previous twelve months to borrowers experiencing financial difficulty, as of September 30, 2026 and 2025, by type of modification. The subsequent defaults were all due to past due status greater than 60 days.


	September 30,
	2026						2025
(Dollars in thousands)	Paying Under Restructured Terms Amortized Cost		Converted to Nonaccrual Amortized Cost		Foreclosures and Defaults Amortized Cost		Paying Under Restructured Terms Amortized Cost		Converted to Nonaccrual Amortized Cost		Foreclosures and Defaults Amortized Cost
Interest rate reduction
Construction and land development	$	1,812	$	—	$	—	$	—	$	—	$	—
Commercial non-owner-occupied		1,770		—		—		14,981		—		—
Commercial owner-occupied real estate		712		—		—		325		—		—
Commercial and industrial		488		—		—		367		—		—
Consumer owner-occupied		—		—		—		—		—		—
Total interest rate reductions	$	4,782	$	—	$	—	$	15,673	$	—	$	—

Term extension
Construction and land development	$	3,739	$	—	$	—	$	310	$	—	$	282
Commercial non-owner-occupied		112,408		—		—		30,697		—		—
Commercial owner-occupied real estate		3,995		—		—		7,563		—		—
Commercial and industrial		28,917		5,974		1,100		8,801		—		285
Other income producing property		2,686		—		211		—		—		—
Consumer owner-occupied		4,698		—		2,050		6,021		—		935
Total term extensions	$	156,443	$	5,974	$	3,361	$	53,392	$	—	$	1,502

Other-than-insignificant payment delay
Construction and land development	$	—	$	—	$	—	$	26,218	$	—	$	—
Commercial non-owner occupied		135,585		—		—		22,833		—		—
Commercial owner-occupied real estate		3,268		—		—		6,072		—		—
Commercial and industrial		7,125		—		—		1,610		—		—
Other income producing property		264		—		—		—		—		—
Consumer owner-occupied		373		—		—		—		—		—
Total payment delays	$	146,615	$	—	$	—	$	56,733	$	—	$	—

Term Extension and Interest Rate Reduction
Commercial non-owner occupied	$	22,714	$	—	$	—	$	—	$	—	$	—
Consumer owner-occupied		1,914		—		—		1,799		—		337
Total term extension and interest rate combinations	$	24,628	$	—	$	—	$	1,799	$	—	$	337

Term Extension and Payment Delay
Commercial and industrial	$	222	$	—	$	—	$	—	$	—	$	—
Total term extension and payment delay combinations	$	222	$	—	$	—	$	—	$	—	$	—

Interest Rate Reduction and Payment Delay
Commercial non-owner occupied	$	—	$	—	$	—	$	29,802	$	—	$	—
Commercial and industrial		—		—		—		1,172		—		—
Total interest rate reduction and payment delay combinations	$	—	$	—	$	—	$	30,974	$	—	$	—
	$	332,690	$	5,974	$	3,361	$	158,571	$	—	$	1,839