v3.26.3
Loans and Allowance for Credit Losses (Tables)
 9 Months Ended
Sep. 30, 2026
Receivables [Abstract]  
Schedule of Amounts Recognized in Balance Sheet

Loans in the accompanying consolidated balance sheets consisted of the following:

(Dollars in thousands)

 

September 30, 2026

 

 

December 31, 2025

 

Real estate loans:

 

 

 

 

 

 

Non-farm non-residential owner occupied

 

$

609,699

 

 

$

434,715

 

Non-farm non-residential non-owner occupied

 

 

988,249

 

 

 

710,401

 

Residential

 

 

514,474

 

 

 

333,419

 

Construction, development & other

 

 

888,908

 

 

 

823,353

 

Farmland

 

 

32,841

 

 

 

26,485

 

Commercial & industrial

 

 

2,368,844

 

 

 

1,906,616

 

Consumer

 

 

1,715

 

 

 

1,576

 

Municipal and other

 

 

88,773

 

 

 

158,186

 

 

 

5,493,503

 

 

 

4,394,751

 

Allowance for credit losses

 

 

(54,418

)

 

 

(43,949

)

Loans, net

 

$

5,439,085

 

 

$

4,350,802

 
Schedule of Non-accrual, Non-accrual Without Specifc ACL and Accruing Past Due Loans, Segregated by Class of Loans

Non-accrual loans, non-accrual loans without a specific ACL, and accruing loans past due 90 days or more segregated by class of loans were as follows:

 

 

September 30, 2026

 

 

December 31, 2025

 

(Dollars in thousands)

 

Non-accrual

 

 

Non-accrual loans with no ACL

 

 

Accruing loans
past due 90
days or more

 

 

Non-accrual

 

 

Non-accrual loans with no ACL

 

 

Accruing loans
past due 90
days or more

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential owner occupied

 

$

5,129

 

 

$

577

 

 

$

1,143

 

 

$

1,235

 

 

$

1,235

 

 

$

679

 

Non-farm non-residential non-owner occupied

 

 

5,365

 

 

 

5,365

 

 

 

509

 

 

 

99

 

 

 

99

 

 

 

5,503

 

Residential

 

 

—

 

 

 

—

 

 

 

3,319

 

 

 

387

 

 

 

209

 

 

 

2,023

 

Construction, development & other

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,847

 

Commercial & industrial

 

 

12,556

 

 

 

11,847

 

 

 

958

 

 

 

8,399

 

 

 

8,120

 

 

 

1,308

 

 

$

23,050

 

 

$

17,789

 

 

$

5,929

 

 

$

10,120

 

 

$

9,663

 

 

$

11,360

 
Schedule of Aging Past Due Loans, Segregated by Class of Loans

An age analysis of past due loans, segregated by class of loans, was as follows:

(Dollars in thousands)

 

30-59
days

 

 

60-89
days

 

 

90 days
or more

 

 

Total
past due

 

 

Total
current

 

 

Total
loans

 

September 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential
   owner occupied

 

$

477

 

 

$

3,999

 

 

$

6,272

 

 

$

10,748

 

 

$

598,951

 

 

$

609,699

 

Non-farm non-residential
   non-owner occupied

 

 

4,553

 

 

 

3,782

 

 

 

5,874

 

 

 

14,209

 

 

 

974,040

 

 

 

988,249

 

Residential

 

 

1,795

 

 

 

6,178

 

 

 

3,319

 

 

 

11,292

 

 

 

503,182

 

 

 

514,474

 

Construction,
   development & other

 

 

500

 

 

 

2,355

 

 

 

—

 

 

 

2,855

 

 

 

886,053

 

 

 

888,908

 

Farmland

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

32,841

 

 

 

32,841

 

Commercial & industrial

 

 

1,047

 

 

 

4,157

 

 

 

13,514

 

 

 

18,718

 

 

 

2,350,126

 

 

 

2,368,844

 

Consumer

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,715

 

 

 

1,715

 

Municipal and other

 

 

99

 

 

 

—

 

 

 

—

 

 

 

99

 

 

 

88,674

 

 

 

88,773

 

 

$

8,471

 

 

$

20,471

 

 

$

28,979

 

 

$

57,921

 

 

$

5,435,582

 

 

$

5,493,503

 

 

December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential
   owner occupied

 

$

5,695

 

 

$

816

 

 

$

1,914

 

 

$

8,425

 

 

$

426,290

 

 

$

434,715

 

Non-farm non-residential
   non-owner occupied

 

 

5,094

 

 

 

497

 

 

 

5,602

 

 

 

11,193

 

 

 

699,208

 

 

 

710,401

 

Residential

 

 

5,512

 

 

 

—

 

 

 

2,410

 

 

 

7,922

 

 

 

325,497

 

 

 

333,419

 

Construction,
   development & other

 

 

—

 

 

 

603

 

 

 

1,847

 

 

 

2,450

 

 

 

820,903

 

 

 

823,353

 

Farmland

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

26,485

 

 

 

26,485

 

Commercial & industrial

 

 

3,517

 

 

 

558

 

 

 

9,707

 

 

 

13,782

 

 

 

1,892,834

 

 

 

1,906,616

 

Consumer

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,576

 

 

 

1,576

 

Municipal and other

 

 

60

 

 

 

24

 

 

 

—

 

 

 

84

 

 

 

158,102

 

 

 

158,186

 

 

$

19,878

 

 

$

2,498

 

 

$

21,480

 

 

$

43,856

 

 

$

4,350,895

 

 

$

4,394,751

 
Summary of Loans Modified for Borrowers Experiencing Financial Difficulty

The following table summarizes loan modifications made to borrowers experiencing financial difficulty for the nine months ended September 30, 2026 and the year ended December 31, 2025:

 

 

Types of modifications to borrowers experiencing financial difficulty

 

(Dollars in thousands)

 

Number
 of
 loans

 

 

Post-
restructured
recorded
investment

 

 

Total
class of loan

 

 

Principal forgiveness

 

 

Term extension

 

 

WAR (*)

 

 

Payment
deferral

 

 

Other
payment modifications

 

 

Combined
term extension and payment deferral

 

September 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential owner occupied

 

 

1

 

 

$

2,445

 

 

 

0.4

%

 

$

—

 

 

$

—

 

 

 

0.00

%

 

$

—

 

 

$

2,445

 

 

$

—

 

Residential

 

 

3

 

 

 

1,669

 

 

 

0.3

%

 

 

—

 

 

 

1,669

 

 

 

0.00

%

 

 

—

 

 

 

—

 

 

 

—

 

Commercial & industrial

 

 

3

 

 

 

4,168

 

 

 

0.2

%

 

 

—

 

 

 

500

 

 

 

1.48

%

 

 

—

 

 

 

—

 

 

 

3,668

 

 

 

 

7

 

 

$

8,282

 

 

 

0.2

%

 

$

—

 

 

$

2,169

 

 

 

 

 

$

—

 

 

$

2,445

 

 

$

3,668

 

December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & industrial

 

 

1

 

 

$

2,812

 

 

 

0.1

%

 

 

—

 

 

 

2,812

 

 

 

0.0

%

 

$

—

 

 

$

—

 

 

$

—

 

(*) Weighted average rate decrease.
Summary of Internal Ratings of Loans

The following tables summarize the Company’s internal ratings of its loans at September 30, 2026 and December 31, 2025:

(Dollars in thousands)

 

Pass

 

 

Special
Mention

 

 

Substandard

 

 

Purchased
Credit
Deteriorated

 

 

Doubtful

 

 

Total

 

September 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential
   owner occupied

 

$

585,003

 

 

$

2,600

 

 

$

19,651

 

 

$

2,445

 

 

$

—

 

 

$

609,699

 

Non-farm non-residential
   non-owner occupied

 

 

964,978

 

 

 

4,497

 

 

 

15,801

 

 

 

2,973

 

 

 

—

 

 

 

988,249

 

Residential

 

 

514,399

 

 

 

—

 

 

 

75

 

 

 

—

 

 

 

—

 

 

 

514,474

 

Construction,
   development & other

 

 

884,235

 

 

 

—

 

 

 

4,673

 

 

 

—

 

 

 

—

 

 

 

888,908

 

Farmland

 

 

32,095

 

 

 

—

 

 

 

746

 

 

 

—

 

 

 

—

 

 

 

32,841

 

Commercial & industrial

 

 

2,324,540

 

 

 

15,987

 

 

 

26,455

 

 

 

1,862

 

 

 

—

 

 

 

2,368,844

 

Consumer

 

 

1,689

 

 

 

26

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,715

 

Municipal and other

 

 

88,773

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

88,773

 

 

$

5,395,712

 

 

$

23,110

 

 

$

67,401

 

 

$

7,280

 

 

$

—

 

 

$

5,493,503

 

 

(Dollars in thousands)

 

Pass

 

 

Special
Mention

 

 

Substandard

 

 

Doubtful

 

 

Total

 

December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential
   owner occupied

 

$

414,506

 

 

$

6,725

 

 

$

13,484

 

 

$

—

 

 

$

434,715

 

Non-farm non-residential
   non-owner occupied

 

 

689,381

 

 

 

4,619

 

 

 

16,401

 

 

 

—

 

 

 

710,401

 

Residential

 

 

333,055

 

 

 

—

 

 

 

364

 

 

 

—

 

 

 

333,419

 

Construction,
   development & other

 

 

819,938

 

 

 

—

 

 

 

3,415

 

 

 

—

 

 

 

823,353

 

Farmland

 

 

25,719

 

 

 

766

 

 

 

—

 

 

 

—

 

 

 

26,485

 

Commercial & industrial

 

 

1,863,861

 

 

 

34,836

 

 

 

7,919

 

 

 

—

 

 

 

1,906,616

 

Consumer

 

 

1,542

 

 

 

34

 

 

 

—

 

 

 

—

 

 

 

1,576

 

Municipal and other

 

 

158,186

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

158,186

 

 

$

4,306,188

 

 

$

46,980

 

 

$

41,583

 

 

$

—

 

 

$

4,394,751

 

 

The following tables summarize the Company's loans by risk grades, loan class and vintage, at September 30, 2026 and December 31, 2025:

 

 

Term Loans Amortized Cost Basis by Origination Year

 

 

Revolving Loans Amortized

 

 

 

 

(Dollars in thousands)

 

2026

 

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

Prior Years

 

 

Cost Basis

 

 

Total

 

September 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential
   owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

119,601

 

 

$

106,761

 

 

$

78,472

 

 

$

53,793

 

 

$

85,637

 

 

$

119,809

 

 

$

20,930

 

 

$

585,003

 

Special Mention

 

 

—

 

 

 

2,600

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,600

 

Substandard

 

 

—

 

 

 

1,564

 

 

 

—

 

 

 

494

 

 

 

7,560

 

 

 

10,033

 

 

 

—

 

 

 

19,651

 

Purchased Credit Deteriorated

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,445

 

 

 

—

 

 

 

—

 

 

 

2,445

 

Total Non-Farm non-residential owner-occupied

 

$

119,601

 

 

$

110,925

 

 

$

78,472

 

 

$

54,287

 

 

$

95,642

 

 

$

129,842

 

 

$

20,930

 

 

$

609,699

 

Non-farm non-residential
   non-owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

274,751

 

 

$

226,210

 

 

$

101,211

 

 

$

56,498

 

 

$

135,658

 

 

$

138,702

 

 

$

31,948

 

 

$

964,978

 

Special Mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,935

 

 

 

2,562

 

 

 

—

 

 

 

4,497

 

Substandard

 

 

9,465

 

 

 

—

 

 

 

70

 

 

 

—

 

 

 

—

 

 

 

6,266

 

 

 

—

 

 

 

15,801

 

Purchased Credit Deteriorated

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,973

 

 

 

—

 

 

 

2,973

 

Total Non-Farm non-residential non owner-occupied

 

$

284,216

 

 

$

226,210

 

 

$

101,281

 

 

$

56,498

 

 

$

137,593

 

 

$

150,503

 

 

$

31,948

 

 

$

988,249

 

Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

78,488

 

 

$

87,780

 

 

$

54,740

 

 

$

77,199

 

 

$

113,436

 

 

$

91,733

 

 

$

11,023

 

 

$

514,399

 

Substandard

 

 

—

 

 

 

69

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

6

 

 

 

—

 

 

 

75

 

Total Residential

 

$

78,488

 

 

$

87,849

 

 

$

54,740

 

 

$

77,199

 

 

$

113,436

 

 

$

91,739

 

 

$

11,023

 

 

$

514,474

 

Construction,
   development & other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

82,660

 

 

$

172,348

 

 

$

51,479

 

 

$

34,997

 

 

$

6,897

 

 

$

7,332

 

 

$

528,522

 

 

$

884,235

 

Substandard

 

 

4,673

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4,673

 

Total Construction, development & other

 

$

87,333

 

 

$

172,348

 

 

$

51,479

 

 

$

34,997

 

 

$

6,897

 

 

$

7,332

 

 

$

528,522

 

 

$

888,908

 

Farmland

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

9,307

 

 

$

1,938

 

 

$

3,116

 

 

$

7,887

 

 

$

7,835

 

 

$

1,103

 

 

$

909

 

 

$

32,095

 

Substandard

 

 

—

 

 

 

746

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

746

 

Total Farmland

 

$

9,307

 

 

$

2,684

 

 

$

3,116

 

 

$

7,887

 

 

$

7,835

 

 

$

1,103

 

 

$

909

 

 

$

32,841

 

Commercial & industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

330,769

 

 

$

339,875

 

 

$

75,539

 

 

$

58,655

 

 

$

42,476

 

 

$

34,473

 

 

$

1,442,753

 

 

$

2,324,540

 

Special Mention

 

 

2,590

 

 

 

1,461

 

 

 

—

 

 

 

—

 

 

 

426

 

 

 

—

 

 

 

11,510

 

 

 

15,987

 

Substandard

 

 

2,471

 

 

 

1,484

 

 

 

1,287

 

 

 

9,608

 

 

 

867

 

 

 

1,913

 

 

 

8,825

 

 

 

26,455

 

Purchased Credit Deteriorated

 

 

—

 

 

 

—

 

 

 

—

 

 

 

30

 

 

 

1,796

 

 

 

—

 

 

 

36

 

 

 

1,862

 

Total Commercial & industrial

 

$

335,830

 

 

$

342,820

 

 

$

76,826

 

 

$

68,293

 

 

$

45,565

 

 

$

36,386

 

 

$

1,463,124

 

 

$

2,368,844

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

479

 

 

$

454

 

 

$

109

 

 

$

401

 

 

$

39

 

 

$

207

 

 

$

—

 

 

$

1,689

 

Special Mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

26

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

26

 

Total Consumer

 

$

479

 

 

$

454

 

 

$

109

 

 

$

427

 

 

$

39

 

 

$

207

 

 

$

—

 

 

$

1,715

 

Municipal and other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

427

 

 

$

116

 

 

$

81

 

 

$

16,207

 

 

$

1,289

 

 

$

55

 

 

$

70,598

 

 

$

88,773

 

Total Municipal and other

 

$

427

 

 

$

116

 

 

$

81

 

 

$

16,207

 

 

$

1,289

 

 

$

55

 

 

$

70,598

 

 

$

88,773

 

Total Loans

 

$

915,681

 

 

$

943,406

 

 

$

366,104

 

 

$

315,795

 

 

$

408,296

 

 

$

417,167

 

 

$

2,127,054

 

 

$

5,493,503

 

 

 

 

Term Loans Amortized Cost Basis by Origination Year

 

 

Revolving Loans Amortized

 

 

 

 

(Dollars in thousands)

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

Prior Years

 

 

Cost Basis

 

 

Total

 

December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential
   owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

100,756

 

 

$

64,629

 

 

$

23,658

 

 

$

64,818

 

 

$

81,912

 

 

$

63,195

 

 

$

15,538

 

 

$

414,506

 

Special Mention

 

 

4,013

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,284

 

 

 

1,428

 

 

 

—

 

 

 

6,725

 

Substandard

 

 

1,017

 

 

 

—

 

 

 

87

 

 

 

4,103

 

 

 

4,115

 

 

 

4,162

 

 

 

—

 

 

 

13,484

 

Total Non-Farm non-residential owner-occupied

 

$

105,786

 

 

$

64,629

 

 

$

23,745

 

 

$

68,921

 

 

$

87,311

 

 

$

68,785

 

 

$

15,538

 

 

$

434,715

 

Non-farm non-residential
   non-owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

220,305

 

 

$

74,690

 

 

$

63,540

 

 

$

153,972

 

 

$

122,038

 

 

$

30,599

 

 

$

24,237

 

 

$

689,381

 

Special Mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,976

 

 

 

—

 

 

 

2,643

 

 

 

—

 

 

 

4,619

 

Substandard

 

 

9,856

 

 

 

100

 

 

 

—

 

 

 

—

 

 

 

6,161

 

 

 

284

 

 

 

—

 

 

 

16,401

 

Total Non-Farm non-residential non owner-occupied

 

$

230,161

 

 

$

74,790

 

 

$

63,540

 

 

$

155,948

 

 

$

128,199

 

 

$

33,526

 

 

$

24,237

 

 

$

710,401

 

Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

65,081

 

 

$

39,057

 

 

$

72,387

 

 

$

74,976

 

 

$

56,620

 

 

$

18,219

 

 

$

6,715

 

 

$

333,055

 

Substandard

 

 

73

 

 

 

82

 

 

 

—

 

 

 

209

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

364

 

Total Residential

 

$

65,154

 

 

$

39,139

 

 

$

72,387

 

 

$

75,185

 

 

$

56,620

 

 

$

18,219

 

 

$

6,715

 

 

$

333,419

 

Construction,
   development & other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

116,531

 

 

$

79,226

 

 

$

73,153

 

 

$

59,248

 

 

$

3,624

 

 

$

3,724

 

 

$

484,432

 

 

$

819,938

 

Substandard

 

 

3,415

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,415

 

Total Construction, development & other

 

$

119,946

 

 

$

79,226

 

 

$

73,153

 

 

$

59,248

 

 

$

3,624

 

 

$

3,724

 

 

$

484,432

 

 

$

823,353

 

Farmland

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

2,653

 

 

$

3,172

 

 

$

7,206

 

 

$

6,720

 

 

$

210

 

 

$

671

 

 

$

5,087

 

 

$

25,719

 

Special Mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

766

 

 

 

—

 

 

 

—

 

 

 

766

 

Total Farmland

 

$

2,653

 

 

$

3,172

 

 

$

7,206

 

 

$

6,720

 

 

$

976

 

 

$

671

 

 

$

5,087

 

 

$

26,485

 

Commercial & industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

391,690

 

 

$

120,852

 

 

$

66,291

 

 

$

64,184

 

 

$

30,736

 

 

$

9,585

 

 

$

1,180,523

 

 

$

1,863,861

 

Special Mention

 

 

914

 

 

 

870

 

 

 

8,526

 

 

 

252

 

 

 

—

 

 

 

97

 

 

 

24,177

 

 

 

34,836

 

Substandard

 

 

70

 

 

 

1,236

 

 

 

2,951

 

 

 

742

 

 

 

249

 

 

 

387

 

 

 

2,284

 

 

 

7,919

 

Total Commercial & industrial

 

$

392,674

 

 

$

122,958

 

 

$

77,768

 

 

$

65,178

 

 

$

30,985

 

 

$

10,069

 

 

$

1,206,984

 

 

$

1,906,616

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

804

 

 

$

102

 

 

$

354

 

 

$

177

 

 

$

10

 

 

$

95

 

 

$

—

 

 

$

1,542

 

Special Mention

 

 

—

 

 

 

—

 

 

 

34

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

34

 

Total Consumer

 

$

804

 

 

$

102

 

 

$

388

 

 

$

177

 

 

$

10

 

 

$

95

 

 

$

—

 

 

$

1,576

 

Municipal and other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

36,101

 

 

$

73

 

 

$

19,347

 

 

$

3,410

 

 

$

560

 

 

$

19

 

 

$

98,676

 

 

$

158,186

 

Total Municipal and other

 

$

36,101

 

 

$

73

 

 

$

19,347

 

 

$

3,410

 

 

$

560

 

 

$

19

 

 

$

98,676

 

 

$

158,186

 

Total Loans

 

$

953,279

 

 

$

384,089

 

 

$

337,534

 

 

$

434,787

 

 

$

308,285

 

 

$

135,108

 

 

$

1,841,669

 

 

$

4,394,751

 

 

The following tables summarize the Company's gross charge-offs by origination year and loan class for the nine months ended September 30, 2026 and the year ended December 31, 2025.

 

 

 

Gross Charge-offs by Origination Year

 

 

Revolving Loans Amortized

 

 

 

 

(Dollars in thousands)

 

2026

 

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

Prior Years

 

 

Cost Basis

 

 

Total

 

September 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & industrial

 

$

—

 

 

$

—

 

 

$

(77

)

 

$

(7

)

 

$

(225

)

 

$

(40

)

 

$

(6

)

 

$

(355

)

Municipal and other

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(7

)

 

 

(26

)

 

 

(17

)

 

 

—

 

 

 

(50

)

Total Charge-Offs

 

$

—

 

 

$

—

 

 

$

(77

)

 

$

(14

)

 

$

(251

)

 

$

(57

)

 

$

(6

)

 

$

(405

)

 

 

 

Gross Charge-offs by Origination Year

 

 

Revolving Loans Amortized

 

 

 

 

(Dollars in thousands)

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

Prior Years

 

 

Cost Basis

 

 

Total

 

December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & industrial

 

$

—

 

 

$

(72

)

 

$

(43

)

 

$

(1,785

)

 

$

—

 

 

$

(385

)

 

$

(1,819

)

 

$

(4,104

)

Municipal and other

 

 

—

 

 

 

—

 

 

 

(4

)

 

 

(30

)

 

 

—

 

 

 

(10

)

 

 

—

 

 

 

(44

)

Total Charge-Offs

 

$

—

 

 

$

(72

)

 

$

(47

)

 

$

(1,815

)

 

$

—

 

 

$

(395

)

 

$

(1,819

)

 

$

(4,148

)
Schedule of Allowance for Credit Losses

The following tables detail the activity in the allowance for credit losses by portfolio segment for the nine months ended September 30, 2026 and 2025:

(Dollars in thousands)

 

Beginning
Balance

 

 

Initial
Allowance on Acquired Loans

 

 

Provision for Credit Losses on Loans

 

 

Charge-offs

 

 

Recoveries

 

 

Ending
Balance

 

Nine Months Ended September 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential
   owner occupied

 

$

2,337

 

 

$

794

 

 

$

607

 

 

$

—

 

 

$

—

 

 

$

3,738

 

Non-farm non-residential
   non-owner occupied

 

 

4,843

 

 

 

1,868

 

 

 

(11

)

 

 

—

 

 

 

—

 

 

 

6,700

 

Residential

 

 

2,008

 

 

 

1,489

 

 

 

(291

)

 

 

—

 

 

 

—

 

 

 

3,206

 

Construction, development & other

 

 

6,955

 

 

 

487

 

 

 

(135

)

 

 

—

 

 

 

—

 

 

 

7,307

 

Farmland

 

 

116

 

 

 

21

 

 

 

19

 

 

 

—

 

 

 

—

 

 

 

156

 

Commercial & industrial

 

 

26,673

 

 

 

2,121

 

 

 

3,604

 

 

 

(355

)

 

 

583

 

 

 

32,626

 

Consumer

 

 

6

 

 

 

5

 

 

 

(2

)

 

 

—

 

 

 

—

 

 

 

9

 

Municipal and other

 

 

1,011

 

 

 

1

 

 

 

(290

)

 

 

(50

)

 

 

4

 

 

 

676

 

 

 

$

43,949

 

 

$

6,786

 

 

$

3,501

 

 

$

(405

)

 

$

587

 

 

$

54,418

 

 

 

(Dollars in thousands)

 

Beginning
Balance

 

 

Provision for Credit Losses on Loans

 

 

Charge-offs

 

 

Recoveries

 

 

Ending
Balance

 

Nine Months Ended September 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential
   owner occupied

 

$

3,015

 

 

$

191

 

 

$

—

 

 

$

—

 

 

$

3,206

 

Non-farm non-residential
   non-owner occupied

 

 

4,460

 

 

 

(426

)

 

 

—

 

 

 

350

 

 

 

4,384

 

Residential

 

 

2,014

 

 

 

(84

)

 

 

—

 

 

 

—

 

 

 

1,930

 

Construction, development & other

 

 

14,728

 

 

 

(2,220

)

 

 

—

 

 

 

—

 

 

 

12,508

 

Farmland

 

 

187

 

 

 

(40

)

 

 

—

 

 

 

—

 

 

 

147

 

Commercial & industrial

 

 

15,370

 

 

 

7,194

 

 

 

(3,257

)

 

 

190

 

 

 

19,497

 

Consumer

 

 

10

 

 

 

(4

)

 

 

—

 

 

 

—

 

 

 

6

 

Municipal and other

 

 

520

 

 

 

405

 

 

 

(40

)

 

 

—

 

 

 

885

 

 

 

$

40,304

 

 

$

5,016

 

 

$

(3,297

)

 

$

540

 

 

$

42,563

 

Management believes the allowance for credit losses is adequate to cover expected credit losses on loans at September 30, 2026 and 2025.

The following tables detail the activity in the allowance for credit losses by portfolio segment for the three months ended September 30, 2026 and 2025:

(Dollars in thousands)

 

Beginning
Balance

 

 

Provision for Credit Losses on Loans

 

 

Charge-offs

 

 

Recoveries

 

 

Ending
Balance

 

Three Months Ended September 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential
   owner occupied

 

$

3,269

 

 

$

469

 

 

$

—

 

 

$

—

 

 

$

3,738

 

Non-farm non-residential
   non-owner occupied

 

 

6,110

 

 

 

590

 

 

 

—

 

 

 

—

 

 

 

6,700

 

Residential

 

 

3,310

 

 

 

(104

)

 

 

—

 

 

 

—

 

 

 

3,206

 

Construction, development & other

 

 

7,372

 

 

 

(65

)

 

 

—

 

 

 

—

 

 

 

7,307

 

Farmland

 

 

171

 

 

 

(15

)

 

 

—

 

 

 

—

 

 

 

156

 

Commercial & industrial

 

 

32,481

 

 

 

118

 

 

 

(84

)

 

 

111

 

 

 

32,626

 

Consumer

 

 

9

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

9

 

Municipal and other

 

 

869

 

 

 

(193

)

 

 

—

 

 

 

—

 

 

 

676

 

 

 

$

53,591

 

 

$

800

 

 

$

(84

)

 

$

111

 

 

$

54,418

 

 

 

(Dollars in thousands)

 

Beginning
Balance

 

 

Provision for Credit Losses on Loans

 

 

Charge-offs

 

 

Recoveries

 

 

Ending
Balance

 

Three Months Ended September 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential
   owner occupied

 

$

2,813

 

 

$

393

 

 

$

—

 

 

$

—

 

 

$

3,206

 

Non-farm non-residential
   non-owner occupied

 

 

4,023

 

 

 

361

 

 

 

—

 

 

 

—

 

 

 

4,384

 

Residential

 

 

1,918

 

 

 

12

 

 

 

—

 

 

 

—

 

 

 

1,930

 

Construction, development & other

 

 

11,737

 

 

 

771

 

 

 

—

 

 

 

—

 

 

 

12,508

 

Farmland

 

 

159

 

 

 

(12

)

 

 

—

 

 

 

—

 

 

 

147

 

Commercial & industrial

 

 

18,632

 

 

 

808

 

 

 

(44

)

 

 

101

 

 

 

19,497

 

Consumer

 

 

5

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

6

 

Municipal and other

 

 

748

 

 

 

177

 

 

 

(40

)

 

 

—

 

 

 

885

 

 

 

$

40,035

 

 

$

2,511

 

 

$

(84

)

 

$

101

 

 

$

42,563

 
Schedule of Allowance for Credit Losses on Amortized Cost Basis of Collateral Dependent With and Without Specific Reserves Assessed Individually for Credit Losses

The following tables present the amortized cost basis of collateral dependent loans and the collateral type which have been assessed individually for credit losses:

(Dollars in thousands)

 

Real Estate

 

 

Business Assets

 

 

Other

 

 

Total

 

September 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential owner occupied

 

$

3,021

 

 

$

2,107

 

 

$

—

 

 

$

5,128

 

Non-farm non-residential non-owner occupied

 

 

8,338

 

 

 

—

 

 

 

—

 

 

 

8,338

 

Commercial & industrial

 

 

—

 

 

 

10,361

 

 

 

2,351

 

 

 

12,712

 

 

 

$

11,359

 

 

$

12,468

 

 

$

2,351

 

 

$

26,178

 

 

December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

Non-farm non-residential owner occupied

 

$

1,235

 

 

$

—

 

 

$

—

 

 

$

1,235

 

Non-farm non-residential non-owner occupied

 

 

99

 

 

 

—

 

 

 

—

 

 

 

99

 

Residential

 

 

387

 

 

 

—

 

 

 

—

 

 

 

387

 

Commercial & industrial

 

 

—

 

 

 

5,893

 

 

 

2,153

 

 

 

8,046

 

 

 

$

1,721

 

 

$

5,893

 

 

$

2,153

 

 

$

9,767

 
Summary of Acquisitions of Loans at Fair Value

In connection with the February 1, 2026 acquisition of loans from Keystone and its subsidiary, Keystone Bank, the PCD loan portfolio was accounted for at fair value as follows:

(Dollars in thousands)

 

 

 

Contractual required payments

 

$

8,235

 

Non-accretable difference (expected loss)

 

 

1,029

 

Cash flows expected to be collected at acquisition

 

 

7,206

 

Accretable yield

 

 

708

 

Basis in acquired Keystone Bank, SSB PCD loans

 

$

6,498

 
Schedule of Gross Contractual Amounts Receivable Balances

The following table presents the gross contractual amounts receivable balances, by portfolio segment, and the carrying amount of PCD loans:

(Dollars in thousands)

 

September 30, 2026

 

 

Real estate loans:

 

 

 

 

Non-farm non-residential owner occupied

 

$

2,950

 

 

Non-farm non-residential non-owner occupied

 

 

2,989

 

 

Commercial & industrial

 

 

2,015

 

 

Total outstanding balances

 

$

7,954

 

 

Carrying amount

 

$

7,280

 

 
Summary of Accretable Yield or Income Expected to be Collected

Accretable yield, or income expected to be collected on PCD loans was as follows:

(Dollars in thousands)

 

September 30, 2026

 

 

Balance at beginning of year

 

$

—

 

 

New loans acquired from Keystone Bank, SSB acquisition

 

 

708

 

 

Accretion of income

 

 

(34

)

 

Balance at end of period

 

$

674