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Loans

3 Months Ended

Mar. 31, 2025

Note 6 — Loans

The following is a summary of total loans:


	March 31,		December 31,
(Dollars in thousands)	2025		2024
Loans:
Construction and land development ⁽¹⁾	$	3,497,909	$	2,184,327
Commercial non-owner-occupied		15,536,086		9,383,732
Commercial owner-occupied real estate		7,417,116		5,716,376
Consumer owner-occupied ⁽²⁾		8,168,477		7,144,885
Home equity loans		1,670,475		1,570,084
Commercial and industrial		8,106,484		6,222,876
Other income producing property		1,286,033		607,750
Consumer		1,075,872		1,062,599
Other loans		8,280		10,298
Total loans		46,766,732		33,902,927
Less: allowance for credit losses		(623,690)		(465,280)
Loans, net	$	46,143,042	$	33,437,647

(1)

Construction and land development includes loans for both commercial construction and development, as well as loans for 1-4 family residential construction and lot loans.

(2)

Consumer owner-occupied real estate includes loans on both 1-4 family owner-occupied property, as well as loans collateralized by 1-4 family owner-occupied properties with a business intent.

The above table reflects the loan portfolio at the amortized cost basis for the periods ended March 31, 2025 and December 31, 2024, to include net deferred costs of $89.1 million and $86.7 million, respectively, and unamortized discount total related to loans acquired of $457.1 million and $36.9 million, respectively. Accrued interest receivables of $182.5 million and $133.0 million, respectively, are accounted for separately and reported in other assets for the periods March 31, 2025 and December 31, 2024.

The Company purchased loans through its acquisition of Independent, for which there was, at acquisition, evidence of more than an insignificant deterioration of credit quality since origination, thus determined to be PCD loans. The carrying amount of those acquired PCD loans, at acquisition, is as follows:


(Dollars in thousands)	January 1, 2025
Book value of acquired loans at acquisition	$	3,081,440
Allowance for credit losses at acquisition		(118,643)
Non-credit discount at acquisition		(151,993)
Carrying value or book value of acquired loans at acquisition	$	2,810,804

As part of the ongoing monitoring of the credit quality of our loan portfolio, management tracks certain credit quality indicators, including trends related to (i) the level of classified loans, (ii) net charge-offs, (iii) non-performing loans (see details below), and (iv) the general economic conditions of the markets that we serve.

The Company utilizes a risk grading matrix to assign a risk grade to each commercial loan. Classified loans are assessed at a minimum of every six months. A description of the general characteristics of the risk grades is as follows:

●

Pass—These loans range from minimal credit risk to average, however, are still an acceptable credit risk.

●

Special mention—A special mention loan has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or the Bank’s credit position at some future date.

●

Substandard—A substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness, or weaknesses, that may jeopardize the liquidation of the debt. A substandard loan is characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.

●

Doubtful—A doubtful loan has all of the weaknesses inherent in one classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of the currently existing facts, conditions and values, highly questionable and improbable.

Construction and land development loans in the following table are on commercial and speculative real estate. Consumer owner-occupied loans are collateralized by 1-4 family owner-occupied properties with a business intent.

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


(Dollars in thousands)		Term Loans Amortized Cost Basis by Origination Year
As of March 31, 2025	2025		2024		2023		2022		2021		Prior		Revolving		Total
Construction and land development
Risk rating:
Pass	$	210,787	$	967,014	$	558,720	$	939,862	$	107,572	$	52,279	$	121,799	$	2,958,033
Special mention		1,874		7,715		35,705		116,662		3,900		307		—		166,163
Substandard		494		24,996		1,221		2,299		750		428		—		30,188
Doubtful		—		—		—		—		—		5		—		5
Total Construction and land development	$	213,155	$	999,725	$	595,646	$	1,058,823	$	112,222	$	53,019	$	121,799	$	3,154,389
Construction and land development
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial non-owner-occupied
Risk rating:
Pass	$	413,315	$	1,354,841	$	1,514,484	$	4,509,750	$	2,965,138	$	3,086,486	$	168,553	$	14,012,567
Special mention		6,586		19,311		78,553		211,675		177,915		39,802		4,114		537,956
Substandard		37,226		82,967		69,362		353,566		223,569		218,869		—		985,559
Doubtful		—		—		—		—		1		3		—		4
Total Commercial non-owner-occupied	$	457,127	$	1,457,119	$	1,662,399	$	5,074,991	$	3,366,623	$	3,345,160	$	172,667	$	15,536,086
Commercial non-owner-occupied
Current-period gross charge-offs	$	—	$	—	$	—	$	435	$	4,533	$	8,588	$	—	$	13,556

Commercial Owner-Occupied
Risk rating:
Pass	$	263,518	$	804,079	$	739,772	$	1,319,124	$	1,278,450	$	2,479,651	$	108,430	$	6,993,024
Special mention		1,262		9,414		17,193		39,621		8,479		32,792		229		108,990
Substandard		4,804		41,351		44,642		71,267		43,901		101,687		7,432		315,084
Doubtful		7		4		3		—		—		4		—		18
Total commercial owner-occupied	$	269,591	$	854,848	$	801,610	$	1,430,012	$	1,330,830	$	2,614,134	$	116,091	$	7,417,116
Commercial owner-occupied
Current-period gross charge-offs	$	—	$	—	$	—	$	748	$	—	$	758	$	—	$	1,506

Commercial and industrial
Risk rating:
Pass	$	835,100	$	1,344,629	$	793,029	$	1,023,086	$	572,105	$	914,905	$	2,173,022	$	7,655,876
Special mention		840		2,700		2,602		18,202		1,143		3,180		61,824		90,491
Substandard		5,345		40,643		46,886		60,677		40,894		25,160		140,167		359,772
Doubtful		—		—		18		51		267		—		9		345
Total commercial and industrial	$	841,285	$	1,387,972	$	842,535	$	1,102,016	$	614,409	$	943,245	$	2,375,022	$	8,106,484
Commercial and industrial
Current-period gross charge-offs	$	—	$	1,032	$	630	$	3,054	$	11,020	$	10,191	$	924	$	26,851

Other income producing property
Risk rating:
Pass	$	30,245	$	169,369	$	144,578	$	318,749	$	202,702	$	240,303	$	42,606	$	1,148,552
Special mention		343		594		162		4,977		26		2,733		1,492		10,327
Substandard		563		906		2,076		5,670		835		18,019		795		28,864
Doubtful		—		—		—		—		—		—		—		—
Total other income producing property	$	31,151	$	170,869	$	146,816	$	329,396	$	203,563	$	261,055	$	44,893	$	1,187,743
Other income producing property
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Consumer owner-occupied
Risk rating:
Pass	$	128	$	3,824	$	17,628	$	5,425	$	3,103	$	819	$	35,207	$	66,134
Special mention		38		18		137		—		—		13		—		206
Substandard		649		1,119		—		—		—		202		1,703		3,673
Doubtful		—		—		—		—		—		1		—		1
Total Consumer owner-occupied	$	815	$	4,961	$	17,765	$	5,425	$	3,103	$	1,035	$	36,910	$	70,014
Consumer owner-occupied
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Other loans
Risk rating:
Pass	$	8,280	$	—	$	—	$	—	$	—	$	—	$	—	$	8,280
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total other loans	$	8,280	$	—	$	—	$	—	$	—	$	—	$	—	$	8,280
Other loans
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Total Commercial Loans
Risk rating:
Pass	$	1,761,373	$	4,643,756	$	3,768,211	$	8,115,996	$	5,129,070	$	6,774,443	$	2,649,617	$	32,842,466
Special mention		10,943		39,752		134,352		391,137		191,463		78,827		67,659		914,133
Substandard		49,081		191,982		164,187		493,479		309,949		364,365		150,097		1,723,140
Doubtful		7		4		21		51		268		13		9		373
Total Commercial Loans	$	1,821,404	$	4,875,494	$	4,066,771	$	9,000,663	$	5,630,750	$	7,217,648	$	2,867,382	$	35,480,112
Commercial Loans
Current-period gross charge-offs	$	—	$	1,032	$	630	$	4,237	$	15,553	$	19,537	$	924	$	41,913

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, 2024:


(Dollars in thousands)		Term Loans Amortized Cost Basis by Origination Year
As of December 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving		Total
Construction and land development
Risk rating:
Pass	$	339,152	$	397,574	$	843,053	$	42,524	$	9,327	$	13,462	$	35,025	$	1,680,117
Special mention		627		30,791		35,170		579		—		321		—		67,488
Substandard		16,672		—		32,483		750		—		581		—		50,486
Doubtful		—		—		—		—		1		4		—		5
Total Construction and land development	$	356,451	$	428,365	$	910,706	$	43,853	$	9,328	$	14,368	$	35,025	$	1,798,096
Construction and land development
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	74	$	2,088	$	—	$	2,162

Commercial non-owner-occupied
Risk rating:
Pass	$	782,863	$	798,454	$	2,664,327	$	1,770,690	$	575,679	$	1,724,342	$	111,021	$	8,427,376
Special mention		6,954		36,014		120,363		137,945		7,486		13,920		195		322,877
Substandard		82,369		47,934		177,487		125,634		82,448		117,606		—		633,478
Doubtful		—		—		—		1		—		—		—		1
Total Commercial non-owner-occupied	$	872,186	$	882,402	$	2,962,177	$	2,034,270	$	665,613	$	1,855,868	$	111,216	$	9,383,732
Commercial non-owner-occupied
Current-period gross charge-offs	$	—	$	—	$	—	$	176	$	—	$	354	$	—	$	530

Commercial Owner-Occupied
Risk rating:
Pass	$	624,613	$	648,461	$	1,020,841	$	1,004,549	$	572,108	$	1,440,686	$	87,011	$	5,398,269
Special mention		4,571		14,537		38,361		8,092		1,114		15,112		212		81,999
Substandard		25,843		35,855		49,032		34,135		21,502		58,982		10,748		236,097
Doubtful		4		3		—		—		—		4		—		11
Total commercial owner-occupied	$	655,031	$	698,856	$	1,108,234	$	1,046,776	$	594,724	$	1,514,784	$	97,971	$	5,716,376
Commercial owner-occupied
Current-period gross charge-offs	$	—	$	298	$	—	$	91	$	227	$	583	$	—	$	1,199

Commercial and industrial
Risk rating:
Pass	$	1,881,120	$	683,911	$	939,929	$	462,655	$	292,253	$	419,145	$	1,226,413	$	5,905,426
Special mention		2,103		2,467		16,120		1,217		628		2,468		22,764		47,767
Substandard		42,308		43,207		37,526		26,080		2,796		18,180		99,460		269,557
Doubtful		—		12		42		57		1		9		5		126
Total commercial and industrial	$	1,925,531	$	729,597	$	993,617	$	490,009	$	295,678	$	439,802	$	1,348,642	$	6,222,876
Commercial and industrial
Current-period gross charge-offs	$	2,971	$	2,752	$	5,946	$	666	$	100	$	4,587	$	3,859	$	20,881

Other income producing property
Risk rating:
Pass	$	63,518	$	51,585	$	105,505	$	84,679	$	45,600	$	95,969	$	37,166	$	484,022
Special mention		612		493		5,947		27		837		2,145		1,269		11,330
Substandard		1,029		712		2,333		2,081		327		5,043		436		11,961
Doubtful		—		—		—		—		—		—		—		—
Total other income producing property	$	65,159	$	52,790	$	113,785	$	86,787	$	46,764	$	103,157	$	38,871	$	507,313
Other income producing property
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Consumer owner-occupied
Risk rating:
Pass	$	4,035	$	17,776	$	5,557	$	3,259	$	594	$	257	$	31,610	$	63,088
Special mention		19		222		—		—		14		35		231		521
Substandard		1,131		—		—		—		3		205		1,961		3,300
Doubtful		—		—		—		—		—		1		—		1
Total Consumer owner-occupied	$	5,185	$	17,998	$	5,557	$	3,259	$	611	$	498	$	33,802	$	66,910
Consumer owner-occupied
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Other loans
Risk rating:
Pass	$	10,298	$	—	$	—	$	—	$	—	$	—	$	—	$	10,298
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total other loans	$	10,298	$	—	$	—	$	—	$	—	$	—	$	—	$	10,298
Other loans
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Total Commercial Loans
Risk rating:
Pass	$	3,705,599	$	2,597,761	$	5,579,212	$	3,368,356	$	1,495,561	$	3,693,861	$	1,528,246	$	21,968,596
Special mention		14,886		84,524		215,961		147,860		10,079		34,001		24,671		531,982
Substandard		169,352		127,708		298,861		188,680		107,076		200,597		112,605		1,204,879
Doubtful		4		15		42		58		2		18		5		144
Total Commercial Loans	$	3,889,841	$	2,810,008	$	6,094,076	$	3,704,954	$	1,612,718	$	3,928,477	$	1,665,527	$	23,705,601
Commercial Loans
Current-period gross charge-offs	$	2,971	$	3,050	$	5,946	$	933	$	401	$	7,612	$	3,859	$	24,772

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 March 31, 2025:


(Dollars in thousands)	Term Loans Amortized Cost Basis by Origination Year
As of March 31, 2025	2025		2024		2023		2022		2021		Prior		Revolving		Total
Consumer owner-occupied
Days past due:
Current	$	160,825	$	725,834	$	1,141,564	$	2,575,797	$	1,740,584	$	1,709,059	$	1,024	$	8,054,687
30 days past due		—		3,179		3,966		748		2,054		8,139		—		18,086
60 days past due		—		609		623		152		492		3,217		—		5,093
90 days past due		—		1,746		5,064		6,613		1,504		5,670		—		20,597
Total Consumer owner-occupied	$	160,825	$	731,368	$	1,151,217	$	2,583,310	$	1,744,634	$	1,726,085	$	1,024	$	8,098,463
Consumer owner-occupied
Current-period gross charge-offs	$	—	$	160	$	216	$	130	$	17	$	58	$	—	$	581

Home equity loans
Days past due:
Current	$	1,119	$	7,716	$	5,268	$	3,896	$	1,302	$	14,079	$	1,628,476	$	1,661,856
30 days past due		—		—		418		—		70		508		3,258		4,254
60 days past due		—		—		155		—		—		40		1,142		1,337
90 days past due		—		—		463		784		111		912		758		3,028
Total Home equity loans	$	1,119	$	7,716	$	6,304	$	4,680	$	1,483	$	15,539	$	1,633,634	$	1,670,475
Home equity loans
Current-period gross charge-offs	$	—	$	—	$	—	$	64	$	—	$	165	$	—	$	229

Consumer
Days past due:
Current	$	56,371	$	183,654	$	201,953	$	199,416	$	87,846	$	200,076	$	135,315	$	1,064,631
30 days past due		202		101		205		367		127		1,269		3,099		5,370
60 days past due		—		249		69		91		48		233		1,660		2,350
90 days past due		—		89		237		387		69		1,266		1,473		3,521
Total consumer	$	56,573	$	184,093	$	202,464	$	200,261	$	88,090	$	202,844	$	141,547	$	1,075,872
Consumer
Current-period gross charge-offs	$	—	$	100	$	259	$	197	$	35	$	2,422	$	1,115	$	4,128

Construction and land development
Days past due:
Current	$	10,316	$	89,347	$	65,747	$	111,950	$	39,997	$	25,733	$	—	$	343,090
30 days past due		—		—		—		—		—		95		—		95
60 days past due		—		—		—		—		—		15		—		15
90 days past due		—		—		—		320		—		—		—		320
Total Construction and land development	$	10,316	$	89,347	$	65,747	$	112,270	$	39,997	$	25,843	$	—	$	343,520
Construction and land development
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Other income producing property
Days past due:
Current	$	483	$	3,026	$	6,045	$	38,101	$	16,409	$	33,881	$	145	$	98,090
30 days past due		—		—		—		—		—		84		—		84
60 days past due		—		—		—		—		—		—		—		—
90 days past due		—		—		—		—		—		116		—		116
Total other income producing property	$	483	$	3,026	$	6,045	$	38,101	$	16,409	$	34,081	$	145	$	98,290
Other income producing property
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Total Consumer Loans
Days past due:
Current	$	229,114	$	1,009,577	$	1,420,577	$	2,929,160	$	1,886,138	$	1,982,828	$	1,764,960	$	11,222,354
30 days past due		202		3,280		4,589		1,115		2,251		10,095		6,357		27,889
60 days past due		—		858		847		243		540		3,505		2,802		8,795
90 days past due		—		1,835		5,764		8,104		1,684		7,964		2,231		27,582
Total Consumer Loans	$	229,316	$	1,015,550	$	1,431,777	$	2,938,622	$	1,890,613	$	2,004,392	$	1,776,350	$	11,286,620
Consumer Loans
Current-period gross charge-offs	$	—	$	260	$	475	$	391	$	52	$	2,645	$	1,115	$	4,938

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 March 31, 2025:

(Dollars in thousands)

Term Loans Amortized Cost Basis by Origination Year

As of March 31, 2025

2025

2024

2023

2022

2021

Prior

Revolving

Total

Total Loans

2,050,720

5,891,044

5,498,548

11,939,285

7,521,363

9,222,040

4,643,732

46,766,732

Current-period gross charge-offs

—

1,292

1,105

4,628

15,605

22,182

2,039

46,851

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, 2024:


(Dollars in thousands)	Term Loans Amortized Cost Basis by Origination Year
As of December 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving		Total
Consumer owner-occupied
Days past due:
Current	$	623,572	$	1,052,852	$	2,303,614	$	1,578,097	$	577,381	$	908,983	$	—	$	7,044,499
30 days past due		1,362		1,847		1,302		614		897		3,045		—		9,067
60 days past due		685		453		2,281		354		251		757		—		4,781
90 days past due		2,283		4,336		6,314		1,730		1,034		3,931		—		19,628
Total Consumer owner-occupied	$	627,902	$	1,059,488	$	2,313,511	$	1,580,795	$	579,563	$	916,716	$	—	$	7,077,975
Consumer owner-occupied
Current-period gross charge-offs	$	35	$	328	$	284	$	16	$	21	$	44	$	—	$	728

Home equity loans
Days past due:
Current	$	7,309	$	6,553	$	3,701	$	1,515	$	1,739	$	10,600	$	1,527,504	$	1,558,921
30 days past due		57		75		74		—		64		788		5,019		6,077
60 days past due		—		73		69		—		—		120		2,044		2,306
90 days past due		52		137		388		76		341		467		1,319		2,780
Total Home equity loans	$	7,418	$	6,838	$	4,232	$	1,591	$	2,144	$	11,975	$	1,535,886	$	1,570,084
Home equity loans
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	110	$	—	$	110

Consumer
Days past due:
Current	$	194,192	$	218,440	$	218,097	$	95,017	$	50,337	$	155,109	$	116,590	$	1,047,782
30 days past due		103		269		309		261		199		1,426		4,926		7,493
60 days past due		40		64		86		97		95		319		2,994		3,695
90 days past due		20		442		393		147		15		1,128		1,484		3,629
Total consumer	$	194,355	$	219,215	$	218,885	$	95,522	$	50,646	$	157,982	$	125,994	$	1,062,599
Consumer
Current-period gross charge-offs	$	194	$	1,610	$	1,377	$	197	$	80	$	451	$	5,247	$	9,156

Construction and land development
Days past due:
Current	$	75,490	$	81,995	$	152,974	$	46,873	$	13,253	$	15,309	$	—	$	385,894
30 days past due		—		—		—		—		—		16		—		16
60 days past due		—		—		—		—		—		—		—		—
90 days past due		—		—		320		—		1		—		—		321
Total Construction and land development	$	75,490	$	81,995	$	153,294	$	46,873	$	13,254	$	15,325	$	—	$	386,231
Construction and land development
Current-period gross charge-offs	$	—	$	—	$	304	$	—	$	—	$	—	$	—	$	304

Other income producing property
Days past due:
Current	$	3,041	$	6,066	$	39,445	$	16,556	$	3,511	$	31,549	$	128	$	100,296
30 days past due		—		—		—		—		—		24		—		24
60 days past due		—		—		—		—		—		—		—		—
90 days past due		—		—		—		—		—		117		—		117
Total other income producing property	$	3,041	$	6,066	$	39,445	$	16,556	$	3,511	$	31,690	$	128	$	100,437
Other income producing property
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Total Consumer Loans
Days past due:
Current	$	903,604	$	1,365,906	$	2,717,831	$	1,738,058	$	646,221	$	1,121,550	$	1,644,222	$	10,137,392
30 days past due		1,522		2,191		1,685		875		1,160		5,299		9,945		22,677
60 days past due		725		590		2,436		451		346		1,196		5,038		10,782
90 days past due		2,355		4,915		7,415		1,953		1,391		5,643		2,803		26,475
Total Consumer Loans	$	908,206	$	1,373,602	$	2,729,367	$	1,741,337	$	649,118	$	1,133,688	$	1,662,008	$	10,197,326
Consumer Loans
Current-period gross charge-offs	$	229	$	1,938	$	1,965	$	213	$	101	$	605	$	5,247	$	10,298

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, 2024:


(Dollars in thousands)	Term Loans Amortized Cost Basis by Origination Year
As of December 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving		Total
Total Loans	$	4,798,047	$	4,183,610	$	8,823,443	$	5,446,291	$	2,261,836	$	5,062,165	$	3,327,535	$	33,902,927

Current-period gross charge-offs	$	3,200	$	4,988	$	7,911	$	1,146	$	502	$	8,217	$	9,106	$	35,070

The following table presents an aging analysis of past due accruing loans, segregated by class, as of March 31, 2025 and December 31, 2024:


	30 - 59 Days		60 - 89 Days		90+ Days		Total				Non-		Total
(Dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Accruing		Loans
March 31, 2025
Construction and land development	$	1,070	$	423	$	—	$	1,493	$	3,494,998	$	1,418	$	3,497,909
Commercial non-owner-occupied		65,055		223		—		65,278		15,432,246		38,562		15,536,086
Commercial owner-occupied		8,028		1,145		225		9,398		7,360,737		46,981		7,417,116
Consumer owner-occupied		14,329		1,539		291		16,159		8,109,769		42,549		8,168,477
Home equity loans		3,335		1,182		—		4,517		1,654,980		10,978		1,670,475
Commercial and industrial		25,064		9,586		2,991		37,641		7,948,945		119,898		8,106,484
Other income producing property		883		265		303		1,451		1,281,771		2,811		1,286,033
Consumer		5,005		2,244		—		7,249		1,063,456		5,167		1,075,872
Other loans		—		—		—		—		8,280		—		8,280
	$	122,769	$	16,607	$	3,810	$	143,186	$	46,355,182	$	268,364	$	46,766,732
December 31, 2024
Construction and land development	$	16	$	—	$	—	$	16	$	2,182,853	$	1,458	$	2,184,327
Commercial non-owner-occupied		2,253		748		—		3,001		9,363,226		17,505		9,383,732
Commercial owner-occupied		7,208		2,844		92		10,144		5,670,550		35,682		5,716,376
Consumer owner-occupied		6,536		444		—		6,980		7,094,851		43,054		7,144,885
Home equity loans		4,717		1,511		1		6,229		1,553,832		10,023		1,570,084
Commercial and industrial		28,427		7,700		3,163		39,290		6,091,566		92,020		6,222,876
Other income producing property		237		116		37		390		605,162		2,198		607,750
Consumer		7,023		3,444		—		10,467		1,046,776		5,356		1,062,599
Other loans		—		—		—		—		10,298		—		10,298
	$	56,417	$	16,807	$	3,293	$	76,517	$	33,619,114	$	207,296	$	33,902,927

The following table is a summary of information pertaining to nonaccrual loans by class, including loans modified for borrowers with financial difficulty as of March 31, 2025 and December 31, 2024:


	March 31,		Greater than		Non-accrual		December 31,
(Dollars in thousands)	2025		90 Days Accruing⁽¹⁾		with no allowance⁽¹⁾		2024
Construction and land development	$	1,418	$	—	$	—	$	1,458
Commercial non-owner-occupied		38,562		—		32,803		17,505
Commercial owner-occupied real estate		46,981		225		18,988		35,682
Consumer owner-occupied		42,549		291		—		43,054
Home equity loans		10,978		—		1,149		10,023
Commercial and industrial		119,898		2,991		28,463		92,020
Other income producing property		2,811		303		—		2,198
Consumer		5,167		—		—		5,356
Total loans on nonaccrual status	$	268,364	$	3,810	$	81,403	$	207,296

(1)

Greater than 90 days accruing and non-accrual with no allowance loans at March 31, 2025.

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 2 — Summary of Significant Accounting Policies for further detailed descriptions on individually evaluated loans.

The following is a summary of collateral dependent loans, by type of collateral, and the extent to which they are collateralized during the period:


	March 31,		Collateral			December 31,		Collateral
(Dollars in thousands)	2025		Coverage		%	2024		Coverage		%
Commercial owner-occupied real estate
Industrial	$	4,734	$	8,729	184%	$	2,835	$	6,831	241%
Office		1,444		1,980	137%		—		—
Other		14,644		27,082	185%		11,087		20,683	187%
Commercial non-owner-occupied real estate
Retail		4,385		5,760	131%		—		—
Other		1,202		1,512	126%		—		—
Office		27,216		30,894	114%		14,223		15,594	110%
Commercial and industrial
Other		77,745		99,198	128%		59,171		74,549	126%
Other income producing property
1-4 family investment property		—		—			1,265		3,286	260%
Consumer owner-occupied
1st Mtg Residential		—		—			963		954	99%
Home equity loans
Residential 1-4 family dwelling		1,149		2,250	196%		1,173		2,250	192%
Total collateral dependent loans	$	132,519	$	177,405		$	90,717	$	124,147

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. Under ASC 326-20-35-6, 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 normally due to appraisal value updates or changes in the number of loans within the asset class and collateral type. As a result of the acquisition of Independent on January 1, 2025, collateral dependent loans increased $48.0 million from the date of acquisition. Overall collateral dependent loans increased $41.8 million during the three months ended March 31, 2025.

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 2 — Summary of Significant Accounting Policies 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 months ended March 31, 2025 and 2024, respectively. The loans are segregated by type of modification and asset class, indicating the financial effect of the modifications.

The amortized cost balance for the modified loans presented below exclude accrued interest receivable of approximately $176,000 and $16,000 as of March 31, 2025 and 2024, respectively.

Three Months Ended March 31,

2025

2024

Reduction in Weighted

Amortized

% of Total

Average Contractual

Amortized

% of Total

Average Contractual

(Dollars in thousands)

Cost

Asset Class

Interest Rate

Cost

Asset Class

Interest Rate

Interest rate reduction

Commercial non-owner-occupied

15,088

0.10%

8.00% to 7.09%

—

Consumer owner-occupied

—

923

0.01%

9.00% to 5.00%

Commercial and industrial

389

0.00%

8.75% to 7.00%

—

Total interest rate reductions

15,477

923

Three Months Ended March 31,

2025

2024

Increase in

Amortized

% of Total

Weighted Average

Amortized

% of Total

Weighted Average

(Dollars in thousands)

Cost

Asset Class

Life of Loan

Cost

Asset Class

Life of Loan

Term extension

Construction and land development

295

0.01%

9 months

—

Commercial and industrial

2,000

0.02%

3 months

—

Consumer owner-occupied

1,298

0.02%

2 months

—

Total term extensions

3,593

—

Three Months Ended March 31,

2025

2024

WA of

Amortized

% of Total

Months Payments

Amortized

% of Total

Months Payments

(Dollars in thousands)

Cost

Asset Class

Were Deferred

Cost

Asset Class

Were Deferred

Other-than-insignificant payment delay

Commercial owner-occupied real estate

693

0.01%

13 months

—

Total payment delays

693

—

Three Months Ended March 31,

2025

2024

Reduction in Weighted

Increase in

Reduction in Weighted

Increase in

Amortized

Average Contractual

Weighted Average

Amortized

Average Contractual

Weighted Average

(Dollars in thousands)

Cost

Interest Rate

Life of Loan

Cost

Interest Rate

Life of Loan

Combination- Term Extension and Interest Rate Reduction

Consumer owner-occupied

490

7.13% to 3.00%

3 months

—

Total

490

—

Three Months Ended March 31,

2025

2024

Reduction in

Increase in

Reduction in

Increase in

Weighted

Average

Amortized

Contractual

Amortization

Amortized

Contractual

Amortization

(Dollars in thousands)

Cost

Interest Rate

Term

Cost

Interest Rate

Term

Combination- Interest Rate Reduction and Payment Delay

Commercial and industrial

1,193

7.75% to 7.00%

12 months

—

Total

1,193

—

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 March 31, 2025, the Company had no 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 March 31, 2025 and 2024, by type of modification. The subsequent defaults were all due to past due status greater than 89 days.


	March 31,
	2025						2024
	Paying Under						Paying Under
	Restructured		Converted to		Foreclosures		Restructured		Converted to		Foreclosures
	Terms		Nonaccrual		and Defaults		Terms		Nonaccrual		and Defaults
	Amortized		Amortized		Amortized		Amortized		Amortized		Amortized
(Dollars in thousands)	Cost		Cost		Cost		Cost		Cost		Cost
Interest rate reduction
Commercial non-owner-occupied	$	15,088	$	—	$	—	$	—	$	—	$	—
Commercial owner-occupied real estate		—		—		—		839		—		—
Commercial and industrial		390		—		—		—		—		—
Consumer owner-occupied		884		—		—		923		—		—
Total interest rate reductions	$	16,362	$	—	$	—	$	1,762	$	—	$	—

Term extension
Construction and land development	$	295	$	—	$	—	$	—	$	—	$	—
Commercial non-owner-occupied		—		—		—		1,241		—		—
Commercial owner-occupied real estate		7,716		—		962		7,075		—		—
Consumer owner-occupied		2,642		—		328		—		—		—
Commercial and industrial		12,352		—		5,144		1,596		—		—
Other income producing property		—		—		—		337		—		—
Total term extensions	$	23,005	$	—	$	6,434	$	10,249	$	—	$	—
Other-than-insignificant payment delay
Commercial owner-occupied real estate	$	693	$	—	$	—	$	—	$	—	$	—
Total payment delays	$	693	$	—	$	—	$	—	$	—	$	—

Term Extension and Interest Rate Reduction
Consumer owner-occupied	$	857	$	—	$	—	$	258	$	—	$	—
Total term extension and interest rate combinations	$	857	$	—	$	—	$	258	$	—	$	—

Term Extension and Payment Delay
Commercial and industrial	$	1,193	$	—	$	—	$	—	$	—	$	—
Total term extension and payment delay combinations	$	1,193	$	—	$	—	$	—	$	—	$	—
	$	42,110	$	—	$	6,434	$	12,269	$	—	$	—

The following table depicts the performance of loans modified within the previous twelve months to borrowers experiencing financial difficulty, as of March 31, 2025 and 2024:


	March 31, 2025						March 31, 2024
	Payment Status (Amortized Cost Basis)						Payment Status (Amortized Cost Basis)
			30-89 Days		90+ Days				30-89 Days		90+ Days
(Dollars in thousands)	Current		Past Due		Past Due		Current		Past Due		Past Due
Construction and land development	$	295	$	—	$	—	$	—	$	—	$	—
Commercial non-owner-occupied		15,088		—		—		1,241		—		—
Commercial owner-occupied real estate		8,409		—		962		7,914		—		—
Consumer owner-occupied		3,529		1,182		—		923		258		—
Commercial and industrial		13,935		—		5,144		1,596		—		—
Other income producing property		—		—		—		337		—		—
Total	$	41,256	$	1,182	$	6,106	$	12,011	$	258	$	—