v3.26.3
LOANS HELD FOR INVESTMENT (Tables)
 9 Months Ended
Sep. 30, 2026
LOANS HELD FOR INVESTMENT [Abstract]  
Summary of Loans Held for Investment by Category
Loans held for investment are summarized by category as of the dates presented below (dollars in thousands):
 
        
 September 30,
2026		    December 31,
2025		 
Commercial real estate$1,364,396  $1,064,625 
Commercial - specialized 435,051   409,351 
Commercial - general 835,328   659,323 
Consumer:       
1-4 family residential 711,700   589,851 
Auto loans 270,688   259,157 
Other consumer 60,262   62,092 
Construction 153,713   100,103 
  3,831,138   3,144,502 
Allowance for credit losses on loans (52,768)   (45,131) 
Loans, net$3,778,370  $3,099,371 
Activity in ACL for Loans and Investment in Loans Disaggregated Based on Method of Evaluating Impairment
The following table details the activity in the ACL for loans for the periods indicated (dollars in thousands). Allocation of a portion of the ACL to one category of loans does not preclude its availability to absorb losses in other categories.
 
                            
 Beginning
Balance		  Initial ACL
on
Acquired
PCD Loans		  Initial ACL
on
Acquired
PSLs 		  Provision
for Credit
Losses		  Charge-
offs		  Recoveries  Ending
Balance		 
For the three months ended September 30, 2026                           
Commercial real estate$18,328  $-  $-  $770  $(898)  $-  $18,200 
Commercial - specialized 5,613   -   -   252   (179)   17   5,703 
Commercial - general 8,590   -   -   119   (138)   190   8,761 
Consumer:                           
1-4 family residential 13,594   -   -   (717)   (60)   42   12,859 
Auto loans 3,449   -   -   154   (138)   30   3,495 
Other consumer 1,120   -   -   156   (262)   88   1,102 
Construction 2,382   -   -   266   -   -   2,648 
 $53,076  $-  $-  $1,000  $(1,675)  $367  $52,768 
                            
For the three months ended September 30, 2025                           
Commercial real estate$15,706  $-  $-  $(228)  $(541)  $-  $14,937 
Commercial - specialized 4,881   -   -   (81)   -   9   4,809 
Commercial - general 7,228   -   -   87   (172)   105   7,248 
Consumer:                           
1-4 family residential 11,150   -   -   234   (307)   3   11,080 
Auto loans 2,995   -   -   132   (202)   41   2,966 
Other consumer 1,102   -   -   303   (261)   40   1,184 
Construction 1,948   -   -   (47)   -   -   1,901 
 $45,010  $-  $-  $400  $(1,483)  $198  $44,125 
                            
For the nine months ended September 30, 2026                           
Commercial real estate$15,214  $1,897  $1,705  $345  $(961)  $-  $18,200 
Commercial - specialized 5,231   181   226   237   (264)   92   5,703 
Commercial - general 7,448   336   914   408   (594)   249   8,761 
Consumer:                           
1-4 family residential 11,103   732   2,207   (1,464)   (62)   343   12,859 
Auto loans 3,033   -   -   896   (542)   108   3,495 
Other consumer 1,150   -   3   504   (864)   309   1,102 
Construction 1,952   27   245   424   -   -   2,648 
 $45,131  $3,173  $5,300  $1,350  $(3,287)  $1,101  $52,768 
                            
For the nine months ended September 30, 2025                           
Commercial real estate$15,973  $-  $-  $(495)  $(541)  $-  $14,937 
Commercial - specialized 4,640   -   -   79   -   90   4,809 
Commercial - general 6,874   -   -   526   (530)   378   7,248 
Consumer:                           
1-4 family residential 9,677   -   -   1,659   (307)   51   11,080 
Auto loans 3,015   -   -   716   (897)   132   2,966 
Other consumer 1,115   -   -   712   (832)   189   1,184 
Construction 1,943   -   -   (47)   -   5   1,901 
 $43,237  $-  $-  $3,150  $(3,107)  $845  $44,125 
The following table shows the Company’s amortized cost and related ACL for individually evaluated collateral dependent loans by class using the fair value of collateral loss estimation methodology of evaluating expected credit losses at the dates indicated (dollars in thousands).
 
                    
   Equipment    Real Estate    Other    Total Loans
Individually
Evaluated		    Total ACL
for
Individually
Evaluated
Loans		 
September 30, 2026                   
Commercial real estate$-  $7,350  $-  $7,350  $994 
Commercial - specialized -   -   -   -   - 
Commercial - general -   705   -   705   - 
Consumer:                   
1-4 family residential -   2,750   -   2,750   169 
Auto loans -   -   -   -   - 
Other consumer -   -   -   -   - 
Construction -   803   -   803   126 
 $-  $11,608  $-  $11,608  $1,289 
                    
December 31, 2025                   
Commercial real estate$462  $941  $-  $1,403  $112 
Commercial - specialized 289   255   -   544   - 
Commercial - general 1,086   2,869   -   3,955   275 
Consumer:                   
1-4 family residential -   -   -   -   - 
Auto loans -   -   -   -   - 
Other consumer -   -   -   -   - 
Construction -   -   -   -   - 
 $1,837  $4,065  $-  $5,902  $387 
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans
The table below provides an age analysis on accruing past-due loans and nonaccrual loans at the dates indicated (dollars in thousands):
 
                
   30-89 Days
Past Due		  90 Days or
More Past
 Due		    Nonaccrual    Nonaccrual
with no
ACL		 
September 30, 2026               
Commercial real estate$322  $706  $7,350  $58 
Commercial - specialized 719   -   59   348 
Commercial - general 3,117   222   833   357 
Consumer:               
1-4 Family residential 2,559   787   3,936   1,884 
Auto loans 326   98   -   - 
Other consumer 641   104   10   - 
Construction 250   -   1,208   - 
 $7,934  $1,917  $13,396  $2,647 
                
December 31, 2025               
Commercial real estate$2,241  $206  $1,402  $54 
Commercial - specialized 264   50   699   544 
Commercial - general 1,173   31   4,108   - 
Consumer:               
1-4 Family residential 1,221   1,750   845   - 
Auto loans 395   40   -   - 
Other consumer 765   80   16   - 
Construction 455   578   -   - 
 $6,514  $2,735  $7,070  $598 
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year and Gross Charge-offs
The following table reflects the amortized cost basis in loans held for investment by credit quality indicator and origination year at the dates indicated, and related year-to-date gross charge-offs. Loans acquired are shown in the table by origination year. The Company had an immaterial amount of revolving loans converted to term loans at September 30, 2026.
                                
 Term Loans
Amortized Cost Basis by Origination Year
September 30, 2026 		 
(Dollars in thousands)  2026    2025    2024    2023    2022    Prior    Revolving Loans    Total 
                                
Commercial real estate                               
Pass$278,905  $234,045  $157,567  $144,343  $234,376  $233,699  $18,188  $1,301,123 
Special mention -   4,058   2,432   9,100   -   8,403   250   24,243 
Substandard -   2,950   7,550   1,436   6,064   21,030   -   39,030 
Total commercial real estate loans$278,905  $241,053  $167,549  $154,879  $240,440  $263,132  $18,438  $1,364,396 
Year-to-date gross charge-offs$-  $-  $-  $-  $64  $897  $-  $961 
                                
Commercial - specialized                               
Pass$111,994  $57,667  $27,930  $23,467  $22,460  $58,287  $131,486  $433,291 
Special mention -   98   -   -   -   -   555   653 
Substandard -   -   110   270   238   489   -   1,107 
Total commercial - specialized loans$111,994  $57,765  $28,040  $23,737  $22,698  $58,776  $132,041  $435,051 
Year-to-date gross charge-offs$-  $-  $-  $84  $180  $-  $-  $264 
                                
Commercial - general                               
Pass$135,794  $167,698  $115,322  $49,604  $100,434  $121,689  $110,951  $801,492 
Special mention -   3,392   365   10,487   26   1,435   1,845   17,550 
Substandard 123   1,257   954   1,632   2,191   4,264   5,865   16,286 
Total commercial - general loans$135,917  $172,347  $116,641  $61,723  $102,651  $127,388  $118,661  $835,328 
Year-to-date gross charge-offs$-  $87  $101  $7  $73  $237  $89  $594 
                                
Consumer 1-4 family residential:                               
Pass$92,138  $82,909  $60,795  $84,315  $171,986  $174,318  $22,246  $688,707 
Special mention -   -   -   64   3,980   -   -   4,044 
Substandard -   752   4,497   1,754   2,408   8,969   569   18,949 
Total consumer 1-4 family residential loans$92,138  $83,661  $65,292  $86,133  $178,374  $183,287  $22,815  $711,700 
Year-to-date gross charge-offs$-  $-  $-  $62  $-  $-  $-  $62 
                                
Consumer auto loans                               
Pass$98,022  $85,519  $33,230  $26,919  $21,921  $4,705  $-  $270,316 
Special mention -   -   -   -   -   -   -   - 
Substandard 49   26   78   49   133   37   -   372 
Total consumer auto loans$98,071  $85,545  $33,308  $26,968  $22,054  $4,742  $-  $270,688 
Year-to-date gross charge-offs$-  $61  $64  $109  $249  $59  $-  $542 
                                
Consumer other consumer                               
Pass$22,038  $17,241  $7,947  $3,850  $3,827  $4,283  $994  $60,180 
Special mention -   -   -   -   -   -   -   - 
Substandard -   13   9   4   8   46   2   82 
Total consumer other consumer loans$22,038  $17,254  $7,956  $3,854  $3,835  $4,329  $996  $60,262 
Year-to-date gross charge-offs(1)$247  $451  $33  $5  $31  $97  $-  $864 
                                
Construction                               
Pass$68,669  $58,461  $12,454  $1,812  $10,470  $-  $639  $152,505 
Special mention -   -   -   -   -   -   -   - 
Substandard -   -   95   1,113   -   -   -   1,208 
Total construction loans$68,669  $58,461  $12,549  $2,925  $10,470  $-  $639  $153,713 
Year-to-date gross charge-offs$-  $-  $-  $-  $-  $-  $-  $- 
 
(1) Includes $247 thousand in charged-off demand deposit overdrafts reported as 2026 originations.
The following table reflects the amortized cost basis in loans held for investment by credit quality indicator and origination year at the dates indicated, and related year-to-date gross charge-offs. Loans acquired are shown in the table by origination year. The Company had an immaterial amount of revolving loans converted to term loans at December 31, 2025.
 
                                
 Term Loans
Amortized Cost Basis by Origination Year
December 31, 2025 		 
(Dollars in thousands)2025  2024  2023  2022   2021  Prior   Revolving Loans  Total 
                                
Commercial real estate                               
Pass$209,948  $137,602  $195,747  $245,012  $95,319  $143,422  $5,372  $1,032,422 
Special mention -   2,825   7,343   81   166   1,095   483   11,993 
Substandard 360   62   5,101   1,613   7,095   5,979   -   20,210 
Total commercial real estate loans$210,308  $140,489  $208,191  $246,706  $102,580  $150,496  $5,855  $1,064,625 
Year-to-date gross charge-offs$-  $-  $541  $-  $-  $-  $-  $541 
                                
Commercial - specialized                               
Pass$122,003  $35,559  $38,159  $24,081  $32,943  $29,452  $103,491  $385,688 
Special mention 4,572   8,076   799   1,042   1,734   830   3,770   20,823 
Substandard -   194   570   811   1,206   59   -   2,840 
Total commercial - specialized loans$126,575  $43,829  $39,528  $25,934  $35,883  $30,341  $107,261  $409,351 
Year-to-date gross charge-offs$-  $-  $-  $-  $-  $-  $-  $- 
                                
Commercial - general                               
Pass$178,827  $103,310  $51,335  $84,327  $43,179  $79,605  $92,158  $632,741 
Special mention 60   2,110   12,127   -   1,011   473   -   15,781 
Substandard 40   758   1,615   1,281   5,749   1,116   242   10,801 
Total commercial - general loans$178,927  $106,178  $65,077  $85,608  $49,939  $81,194  $92,400  $659,323 
Year-to-date gross charge-offs$-  $245  $164  $116  $63  $245  $50  $883 
                                
Consumer 1-4 family residential:                               
Pass$95,677  $69,844  $92,148  $137,702  $77,474  $96,393  $4,010  $573,248 
Special mention -   -   621   428   5,061   -   -   6,110 
Substandard 214   3,095   1,573   1,067   604   3,940   -   10,493 
Total consumer 1-4 family residential loans$95,891  $72,939  $94,342  $139,197  $83,139  $100,333  $4,010  $589,851 
Year-to-date gross charge-offs$-  $-  $31  $-  $215  $61  $-  $307 
                                
Consumer auto loans                               
Pass$115,240  $48,236  $42,397  $39,896  $11,045  $2,015  $-  $258,829 
Special mention -   -   -   -   -   -   -   - 
Substandard -   44   70   122   75   17   -   328 
Total consumer auto loans$115,240  $48,280  $42,467  $40,018  $11,120  $2,032  $-  $259,157 
Year-to-date gross charge-offs$29  $243  $367  $477  $198  $35  $-  $1,349 
                                
Consumer other consumer                               
Pass$27,912  $12,521  $6,704  $7,014  $2,223  $4,096  $1,534  $62,004 
Special mention -   -   -   -   -   -   -   - 
Substandard 16   13   -   16   10   33   -   88 
Total consumer other consumer loans$27,928  $12,534  $6,704  $7,030  $2,233  $4,129  $1,534  $62,092 
Year-to-date gross charge-offs$510  $203  $44  $107  $49  $152  $1  $1,066 
                                
Construction                               
Pass$71,154  $24,768  $2,505  $570  $-  $-  $-  $98,997 
Special mention -   -   -   -   -   -   -   - 
Substandard -   -   1,106   -   -   -   -   1,106 
Total construction loans$71,154  $24,768  $3,611  $570  $-  $-  $-  $100,103 
Year-to-date gross charge-offs(1)$-  $-  $-  $-  $-  $-  $-  $- 
 
(1) Includes $498 thousand in charged-off demand deposit overdrafts reported as 2025 originations.
Amortized Cost Basis of Loans Modified to Borrowers Experiencing Financial Difficulty and Financial Effects of Loan Modifications
The following table presents the amortized cost basis of loans at September 30, 2026 and 2025 that were both experiencing financial difficulty and modified during the periods indicated, by class and by type of modification. 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 (dollars in thousands):
 
                        
                        
 Payment
Delay		  Term
Extension		   Rate
Reduction		  Term 
Extension
and Payment
Delay		    PaymentDelay,
Term Extension,
and Interest
Rate Reduction		  % of
Total Class 
Financing of
Receivable		 
Three Months Ended September 30, 2026                       
Commercial real estate$-  $-  $-  $4,511  $-   0.33%
Commercial - specialized -   -   -   -   -   0.00%
Commercial - general -   700   -   -   -   0.08%
Consumer:                       
1-4 family -   -   -   -   -   0.00%
Auto loans -   -   -   -   -   0.00%
Other consumer -   -   -   -   -   0.00%
Construction -   -   -   584   -   0.38%
 $-  $700  $-  $5,095  $-   0.15%
                        
Three Months Ended September 30, 2025                       
Commercial real estate$-  $124  $-  $604  $-   0.07%
Commercial - specialized -   -   -   101   -   0.03%
Commercial - general -   139   -   3,955   -   0.65%
Consumer:                       
1-4 family -   -   -   -   -   0.00%
Auto loans -   -   -   -   -   0.00%
Other consumer -   -   -   -   -   0.00%
Construction -   530   -   -   -   0.54%
 $-  $793  $-  $4,660  $-   0.18%
                        
Nine Months Ended September 30, 2026                       
Commercial real estate$-  $-  $-  $4,511  $-   0.33%
Commercial - specialized 169   -   -   -   -   0.04%
Commercial - general 357   766   -   12   -   0.14%
Consumer:                       
1-4 family -   30   -   223   -   0.04%
Auto loans -   -   -   -   -   0.00%
Other consumer -   -   -   -   -   0.00%
Construction -   529   -   584   -   0.72%
 $526  $1,325  $-  $5,330  $-   0.19%
                        
Nine Months Ended September 30, 2025                       
Commercial real estate$-  $124  $-  $604  $-   0.07%
Commercial - specialized -   -   -   101   -   0.03%
Commercial - general -   391   -   3,998   8   0.70%
Consumer:                       
1-4 family -   -   -   -   -   0.00%
Auto loans 44   -   -   -   3   0.02%
Other consumer -   -   -   15   -   0.02%
Construction -   530   -   -   -   0.54%
 $44  $1,045  $-  $4,718  $11   0.19%
The following table presents the financial effects of the loan modifications presented above to borrowers experiencing financial difficulty during the periods indicated below (dollars in thousands):
 
        
   Weighted - Average
Interest
Rate
Reduction		   Weighted - Average
Term
Extension
(Months)		 
Three Months Ended September 30, 2026       
Commercial real estate 0.00%  15 
Commercial - specialized 0.00%  - 
Commercial - general 0.00%  3 
Consumer:       
1-4 Family residential 0.00%  - 
Auto loans 0.00%  - 
Other consumer 0.00%  - 
Construction 0.00%  6 
        
Three Months Ended September 30, 2025       
Commercial real estate 0.00%  9 
Commercial - specialized 0.00%  11 
Commercial - general 0.00%  5 
Consumer:       
1-4 Family residential 0.00%  - 
Auto loans 0.00%  - 
Other consumer 0.00%  - 
Construction 0.00%  3 
        
Nine Months Ended September 30, 2026       
Commercial real estate 0.00%  15 
Commercial - specialized 0.00%  - 
Commercial - general 0.00%  3 
Consumer:       
1-4 Family residential 0.00%  44 
Auto loans 0.00%  - 
Other consumer 0.00%  - 
Construction 0.00%  40 
        
Nine Months Ended September 30, 2025       
Commercial real estate 0.00%  9 
Commercial - specialized 0.00%  11 
Commercial - general 1.00%  7 
Consumer:       
1-4 Family residential 0.00%  - 
Auto loans 1.20%  50 
Other consumer 0.00%  5 
Construction 0.00%  3 
The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of such loans that have been modified in the last twelve months at the dates indicated (dollars in thousands):
 
                
 Current  30-89 Days
Past Due		  90 Days or
More Past
Due		  Nonaccrual 
September 30, 2026               
Commercial real estate$-  $-  $-  $4,511 
Commercial - specialized 169   -   -   - 
Commercial - general 870   12   -   375 
Consumer:               
1-4 Family residential 99   -   30   124 
Auto loans 24   -   -   - 
Other consumer -   -   -   - 
Construction -   -   -   1,113 
 $1,162  $12  $30  $6,123 
                
September 30, 2025               
Commercial real estate 727   -   -   - 
Commercial - specialized -   -   -   101 
Commercial - general 243   156   -   4,045 
Consumer:               
1-4 Family residential 185   237   84   - 
Auto loans 47   -   -   - 
Other consumer 15   -   -   - 
Construction -   529   -   - 
 $1,217  $922  $84  $4,146