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Loans Held for Investment and Allowance for Credit Losses on Loans | 9 Months Ended
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Sep. 30, 2025
Receivables [Abstract] |
Loans Held for Investment and Allowance for Credit Losses on Loans | (4) LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR CREDIT LOSSES ON LOANS Loans held for investment are summarized by portfolio segment as follows:
| September 30, 2025 |  |  | December 31, 2024 |
| (Dollars in thousands) |
Real estate: |  |  |  |  |
Commercial real estate owner occupied |  | 937,976 |  |  |  | 931,709 |
Commercial real estate non-owner occupied |  | 1,703,037 |  |  |  | 1,578,483 |
Construction and development < 60 months |  | 661,882 |  |  |  | 756,662 |
Construction residential real estate < 60 months |  | 249,539 |  |  |  | 250,373 |
Residential real estate first lien |  | 1,486,440 |  |  |  | 1,431,265 |
Residential real estate all other |  | 305,294 |  |  |  | 275,461 |
Agriculture |  | 445,530 |  |  |  | 449,190 |
Commercial non-real estate |  | 1,458,122 |  |  |  | 1,363,462 |
Consumer non-real estate |  | 493,900 |  |  |  | 478,647 |
Oil and gas |  | 536,527 |  |  |  | 509,858 |
Total (1) | $ | 8,278,247 |  |  | $ | 8,025,110 |
(1) Excludes accrued interest receivable of $41.2 million at September 30, 2025 and $40.9 million at December 31, 2024, that is recorded in accrued interest receivable and other assets. |
The Company's loans are currently 83% held by BancFirst and 17% held by Pegasus and Worthington. In addition, approximately 70% of the Company's loans are secured by real estate. Credit risk on loans is managed through limits on amounts loaned to individual and related borrowers, underwriting standards and loan monitoring procedures. The amounts and types of collateral obtained, if any, to secure loans are based upon the Company’s underwriting standards and management’s credit evaluation. Collateral varies, but may include real estate, equipment, accounts receivable, inventory, livestock and/or securities. The Company’s interest in collateral is secured through filing mortgages and liens, or by possession of the collateral. The Company's portfolio segment descriptions and the weighted average remaining life of portfolio segments are disclosed in Note (5) to the Company's Annual Report on Form 10-K for the year ended December 31, 2024. Other Real Estate Owned and Repossessed Assets and Loan Modifications The following is a summary of other real estate owned ("OREO") and repossessed assets:
|  | September 30, 2025 |  |  | December 31, 2024 |
|  | (Dollars in thousands) |
Other real estate owned and repossessed assets |  | $ | 53,233 |  |  | $ | 33,665 |
During the nine months ended September 30, 2025 the Company foreclosed on a construction and development real estate loan and recorded $15.6 million in OREO, which was the primary reason for the increase in OREO. In addition, as of both September 30, 2025 and December 31, 2024, OREO included a commercial real estate property recorded at approximately $31.1 million and $28.1 million, respectively. The increase for this commercial real estate property was due to tenant improvements during the nine months ended September 30, 2025. Rental income for this property is included in other noninterest income on the consolidated statements of comprehensive income. Operating expense for this property is included in net expense from other real estate owned in noninterest expense on the consolidated statements of comprehensive income. This property had the following rental income and operating expenses for the periods presented.
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
|  | (Dollars in thousands) |
Rental income |  | $ | 3,164 |  |  | $ | 3,043 |  |  | $ | 9,487 |  |  | $ | 9,069 |
Operating expense |  |  | 2,558 |  |  |  | 2,601 |  |  |  | 7,855 |  |  |  | 7,524 |
During the nine months ended September 30, 2025, the Company sold property held in other real estate owned for a total loss of $40,000, compared to a total gain of $1.3 million in the nine months ended September 30, 2024. The Company charges interest on principal balances outstanding on modified loans during deferral periods. The current and future financial effects of the recorded balance of loans considered to be modified during the period were not material. The recorded balance of loans modified during the nine months ended September 30, 2025 was approx imately $6.0 mil lion compared to $14.8 million during the year ended December 31, 2024. Nonaccrual loans The Company did no t recognize any interest income on nonaccrual loans for either the nine months ended September 30, 2025 or 2024. In addition, all loans identified as nonaccrual loans have related allowances for credit losses at September 30, 2025 and December 31, 2024, respectively. Had nonaccrual loans performed in accordance with their original contractual terms, the Company would have recognized additional interest income of approximately $3.6 million for the nine months ended September 30, 2025 and approximately $2.6 million for the nine months ended September 30, 2024. Nonaccrual loans guaranteed by government agencies totaled approximately $10.0 million at September 30, 2025 and approximately $9.0 million at December 31, 2024. The following table is a summary of amounts included in nonaccrual loans, segregated by portfolio segment.
|  | September 30, 2025 |  |  | December 31, 2024 |
|  | (Dollars in thousands) |
Real estate: |  |  |  |  |  |
Commercial real estate owner occupied |  | $ | 16,165 |  |  | $ | 7,957 |
Commercial real estate non-owner occupied |  |  | 20,794 |  |  |  | 8,913 |
Construction and development < 60 months |  |  | 1,210 |  |  |  | 20,445 |
Construction residential real estate < 60 months |  |  | 1,759 |  |  |  | 1,481 |
Residential real estate first lien |  |  | 3,930 |  |  |  | 5,193 |
Residential real estate all other |  |  | 473 |  |  |  | 653 |
Agriculture |  |  | 1,730 |  |  |  | 2,047 |
Commercial non-real estate |  |  | 8,867 |  |  |  | 8,552 |
Consumer non-real estate |  |  | 1,414 |  |  |  | 1,028 |
Oil and gas |  |  | 924 |  |  |  | 1,715 |
Total |  | $ | 57,266 |  |  | $ | 57,984 |
Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. The following tables present an age analysis of the Company's loans held for investment:
|  | Age Analysis of Past Due Loans |
|  | 30-59 Days Past Due |  |  | 60-89 Days Past Due |  |  | 90 Days and Greater |  |  | Total Past Due Loans |  |  | Current Loans |  |  | Total Loans |  |  | Accruing Loans 90 Days or More Past Due |
|  | (Dollars in thousands) |
As of September 30, 2025 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate owner occupied |  | $ | 1,982 |  |  | $ | 9,661 |  |  | $ | 8,984 |  |  | $ | 20,627 |  |  | $ | 917,349 |  |  | $ | 937,976 |  |  | $ | 3,505 |
Commercial real estate non-owner occupied |  |  | 1,225 |  |  |  | 1,510 |  |  |  | 18,529 |  |  |  | 21,264 |  |  |  | 1,681,773 |  |  |  | 1,703,037 |  |  |  | — |
Construction and development < 60 months |  |  | 91 |  |  |  | — |  |  |  | 1,399 |  |  |  | 1,490 |  |  |  | 660,392 |  |  |  | 661,882 |  |  |  | 248 |
Construction residential real estate < 60 months |  |  | 1,028 |  |  |  | — |  |  |  | 1,028 |  |  |  | 2,056 |  |  |  | 247,483 |  |  |  | 249,539 |  |  |  | 82 |
Residential real estate first lien |  |  | 6,370 |  |  |  | 1,272 |  |  |  | 3,473 |  |  |  | 11,115 |  |  |  | 1,475,325 |  |  |  | 1,486,440 |  |  |  | 1,286 |
Residential real estate all other |  |  | 1,943 |  |  |  | 463 |  |  |  | 556 |  |  |  | 2,962 |  |  |  | 302,332 |  |  |  | 305,294 |  |  |  | 401 |
Agriculture |  |  | 1,005 |  |  |  | 1,203 |  |  |  | 1,503 |  |  |  | 3,711 |  |  |  | 441,819 |  |  |  | 445,530 |  |  |  | 457 |
Commercial non-real estate |  |  | 2,256 |  |  |  | 1,605 |  |  |  | 8,894 |  |  |  | 12,755 |  |  |  | 1,445,367 |  |  |  | 1,458,122 |  |  |  | 1,462 |
Consumer non-real estate |  |  | 2,646 |  |  |  | 1,073 |  |  |  | 1,203 |  |  |  | 4,922 |  |  |  | 488,978 |  |  |  | 493,900 |  |  |  | 518 |
Oil and gas |  |  | 100 |  |  |  | 33 |  |  |  | 1,412 |  |  |  | 1,545 |  |  |  | 534,982 |  |  |  | 536,527 |  |  |  | — |
Total |  | $ | 18,646 |  |  | $ | 16,820 |  |  | $ | 46,981 |  |  | $ | 82,447 |  |  | $ | 8,195,800 |  |  | $ | 8,278,247 |  |  | $ | 7,959 |
As of December 31, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate owner occupied |  | $ | 2,810 |  |  | $ | 273 |  |  | $ | 7,963 |  |  | $ | 11,046 |  |  | $ | 920,663 |  |  | $ | 931,709 |  |  | $ | 569 |
Commercial real estate non-owner occupied |  |  | 603 |  |  |  | 16,871 |  |  |  | 610 |  |  |  | 18,084 |  |  |  | 1,560,399 |  |  |  | 1,578,483 |  |  |  | 41 |
Construction and development < 60 months |  |  | 317 |  |  |  | 351 |  |  |  | 20,327 |  |  |  | 20,995 |  |  |  | 735,667 |  |  |  | 756,662 |  |  |  | 116 |
Construction residential real estate < 60 months |  |  | 292 |  |  |  | 622 |  |  |  | 616 |  |  |  | 1,530 |  |  |  | 248,843 |  |  |  | 250,373 |  |  |  | — |
Residential real estate first lien |  |  | 9,128 |  |  |  | 2,118 |  |  |  | 3,332 |  |  |  | 14,578 |  |  |  | 1,416,687 |  |  |  | 1,431,265 |  |  |  | 797 |
Residential real estate all other |  |  | 1,498 |  |  |  | 559 |  |  |  | 828 |  |  |  | 2,885 |  |  |  | 272,576 |  |  |  | 275,461 |  |  |  | 370 |
Agriculture |  |  | 1,569 |  |  |  | 1,357 |  |  |  | 5,691 |  |  |  | 8,617 |  |  |  | 440,573 |  |  |  | 449,190 |  |  |  | 4,754 |
Commercial non-real estate |  |  | 4,325 |  |  |  | 1,019 |  |  |  | 5,983 |  |  |  | 11,327 |  |  |  | 1,352,135 |  |  |  | 1,363,462 |  |  |  | 356 |
Consumer non-real estate |  |  | 3,748 |  |  |  | 907 |  |  |  | 1,173 |  |  |  | 5,828 |  |  |  | 472,819 |  |  |  | 478,647 |  |  |  | 504 |
Oil and gas |  |  | 1,111 |  |  |  | 458 |  |  |  | 232 |  |  |  | 1,801 |  |  |  | 508,057 |  |  |  | 509,858 |  |  |  | 232 |
Total |  | $ | 25,401 |  |  | $ | 24,535 |  |  | $ | 46,755 |  |  | $ | 96,691 |  |  | $ | 7,928,419 |  |  | $ | 8,025,110 |  |  | $ | 7,739 |
Credit Quality Indicators The Company considers credit quality indicators to monitor the credit risk in the loan portfolio including volume and severity of loan delinquencies, nonaccrual loans, internal grading of loans, historical credit loss experience and economic conditions. These indicators are reviewed and updated regularly throughout the year. An internal risk grading system is used to indicate the credit risk of loans. The loan grades used by the Company are for internal risk identification purposes and do not directly correlate to regulatory classification categories or any financial reporting definitions. The general characteristics of the risk grades and the table summarizing the Company’s gross loans held for investment by year of origination and internally assigned credit grades as of December 31, 2024, are disclosed in Note (5) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. The Company’s revolving loans that are converted to term loans are not material and therefore have not been presented. The following table summarizes the Company’s gross loans held for investment by year of origination and internally assigned credit grades:
|  | Term Loans Amortized Cost Basis by Origination Year |  |  | Revolving Loans |  |  |  |
(Dollars in thousands) |  | 2025 |  |  | 2024 |  |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | Prior |  |  | Amortized Cost Basis |  |  | Total |
As of September 30, 2025 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate owner occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Grade 1 |  | $ | 75,122 |  |  | $ | 70,456 |  |  | $ | 92,092 |  |  | $ | 117,486 |  |  | $ | 84,117 |  |  | $ | 170,157 |  |  | $ | 12,630 |  |  | $ | 622,060 |
Grade 2 |  |  | 52,310 |  |  |  | 36,726 |  |  |  | 29,313 |  |  |  | 47,634 |  |  |  | 45,787 |  |  |  | 55,469 |  |  |  | 7,883 |  |  |  | 275,122 |
Grade 3 |  |  | 1,747 |  |  |  | 4,024 |  |  |  | 10,863 |  |  |  | 4,224 |  |  |  | 4,269 |  |  |  | 2,570 |  |  |  | 138 |  |  |  | 27,835 |
Grade 4 |  |  | — |  |  |  | 9,583 |  |  |  | 599 |  |  |  | 13 |  |  |  | 609 |  |  |  | 2,097 |  |  |  | 58 |  |  |  | 12,959 |
Total commercial real estate owner occupied |  |  | 129,179 |  |  |  | 120,789 |  |  |  | 132,867 |  |  |  | 169,357 |  |  |  | 134,782 |  |  |  | 230,293 |  |  |  | 20,709 |  |  |  | 937,976 |
Commercial real estate non-owner occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Grade 1 |  | $ | 142,429 |  |  | $ | 116,888 |  |  | $ | 176,137 |  |  | $ | 262,651 |  |  | $ | 114,698 |  |  | $ | 154,866 |  |  | $ | 11,887 |  |  | $ | 979,556 |
Grade 2 |  |  | 138,949 |  |  |  | 66,898 |  |  |  | 157,707 |  |  |  | 140,525 |  |  |  | 101,760 |  |  |  | 78,531 |  |  |  | 14,715 |  |  |  | 699,085 |
Grade 3 |  |  | 3,356 |  |  |  | — |  |  |  | 666 |  |  |  | 930 |  |  |  | 513 |  |  |  | — |  |  |  | — |  |  |  | 5,465 |
Grade 4 |  |  | — |  |  |  | 17,840 |  |  |  | 115 |  |  |  | 64 |  |  |  | 262 |  |  |  | 28 |  |  |  | — |  |  |  | 18,309 |
Grade 5 |  |  | — |  |  |  | 622 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 622 |
Total commercial real estate non-owner occupied |  |  | 284,734 |  |  |  | 202,248 |  |  |  | 334,625 |  |  |  | 404,170 |  |  |  | 217,233 |  |  |  | 233,425 |  |  |  | 26,602 |  |  |  | 1,703,037 |
Construction and development < 60 months |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Grade 1 |  | $ | 90,161 |  |  | $ | 84,331 |  |  | $ | 75,901 |  |  | $ | 86,717 |  |  | $ | 6,482 |  |  | $ | 12,135 |  |  | $ | 30,238 |  |  | $ | 385,965 |
Grade 2 |  |  | 85,003 |  |  |  | 45,142 |  |  |  | 77,790 |  |  |  | 36,836 |  |  |  | 1,901 |  |  |  | 15,312 |  |  |  | 9,413 |  |  |  | 271,397 |
Grade 3 |  |  | 3,069 |  |  |  | 32 |  |  |  | 37 |  |  |  | 35 |  |  |  | — |  |  |  | 117 |  |  |  | — |  |  |  | 3,290 |
Grade 4 |  |  | 59 |  |  |  | — |  |  |  | — |  |  |  | 816 |  |  |  | 216 |  |  |  | 139 |  |  |  | — |  |  |  | 1,230 |
Total construction and development < 60 months |  |  | 178,292 |  |  |  | 129,505 |  |  |  | 153,728 |  |  |  | 124,404 |  |  |  | 8,599 |  |  |  | 27,703 |  |  |  | 39,651 |  |  |  | 661,882 |
Construction residential real estate < 60 months |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Grade 1 |  | $ | 114,433 |  |  | $ | 27,539 |  |  | $ | 1,948 |  |  | $ | 2,229 |  |  | $ | 88 |  |  | $ | 447 |  |  | $ | 5,385 |  |  | $ | 152,069 |
Grade 2 |  |  | 68,991 |  |  |  | 19,229 |  |  |  | 36 |  |  |  | 212 |  |  |  | — |  |  |  | — |  |  |  | 5,549 |  |  |  | 94,017 |
Grade 3 |  |  | 1,337 |  |  |  | 250 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 108 |  |  |  | 1,695 |
Grade 4 |  |  | 813 |  |  |  | 622 |  |  |  | 117 |  |  |  | 206 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,758 |
Total construction residential real estate < 60 months |  |  | 185,574 |  |  |  | 47,640 |  |  |  | 2,101 |  |  |  | 2,647 |  |  |  | 88 |  |  |  | 447 |  |  |  | 11,042 |  |  |  | 249,539 |
Residential real estate first lien |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Grade 1 |  | $ | 189,404 |  |  | $ | 198,149 |  |  | $ | 171,404 |  |  | $ | 173,988 |  |  | $ | 128,007 |  |  | $ | 220,927 |  |  | $ | 5,147 |  |  | $ | 1,087,026 |
Grade 2 |  |  | 65,536 |  |  |  | 77,693 |  |  |  | 52,921 |  |  |  | 49,467 |  |  |  | 38,097 |  |  |  | 64,856 |  |  |  | 16,879 |  |  |  | 365,449 |
Grade 3 |  |  | 6,107 |  |  |  | 4,737 |  |  |  | 3,461 |  |  |  | 2,943 |  |  |  | 3,254 |  |  |  | 5,711 |  |  |  | — |  |  |  | 26,213 |
Grade 4 |  |  | 263 |  |  |  | 2,024 |  |  |  | 1,215 |  |  |  | 890 |  |  |  | 1,145 |  |  |  | 2,215 |  |  |  | — |  |  |  | 7,752 |
Total residential real estate first lien |  |  | 261,310 |  |  |  | 282,603 |  |  |  | 229,001 |  |  |  | 227,288 |  |  |  | 170,503 |  |  |  | 293,709 |  |  |  | 22,026 |  |  |  | 1,486,440 |
Residential real estate all other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Grade 1 |  | $ | 30,361 |  |  | $ | 32,299 |  |  | $ | 20,433 |  |  | $ | 16,989 |  |  | $ | 4,688 |  |  | $ | 13,500 |  |  | $ | 54,635 |  |  | $ | 172,905 |
Grade 2 |  |  | 5,219 |  |  |  | 6,630 |  |  |  | 4,810 |  |  |  | 3,777 |  |  |  | 1,079 |  |  |  | 4,373 |  |  |  | 98,709 |  |  |  | 124,597 |
Grade 3 |  |  | 877 |  |  |  | 667 |  |  |  | 531 |  |  |  | 184 |  |  |  | 276 |  |  |  | 473 |  |  |  | 2,960 |  |  |  | 5,968 |
Grade 4 |  |  | 472 |  |  |  | 68 |  |  |  | 144 |  |  |  | 68 |  |  |  | — |  |  |  | 141 |  |  |  | 931 |  |  |  | 1,824 |
Total residential real estate all other |  |  | 36,929 |  |  |  | 39,664 |  |  |  | 25,918 |  |  |  | 21,018 |  |  |  | 6,043 |  |  |  | 18,487 |  |  |  | 157,235 |  |  |  | 305,294 |
Agriculture |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Grade 1 |  | $ | 38,300 |  |  | $ | 27,196 |  |  | $ | 31,679 |  |  | $ | 30,379 |  |  | $ | 22,984 |  |  | $ | 48,761 |  |  | $ | 43,394 |  |  | $ | 242,693 |
Grade 2 |  |  | 42,272 |  |  |  | 27,054 |  |  |  | 20,291 |  |  |  | 15,840 |  |  |  | 10,998 |  |  |  | 22,950 |  |  |  | 41,001 |  |  |  | 180,406 |
Grade 3 |  |  | 1,403 |  |  |  | 1,654 |  |  |  | 1,933 |  |  |  | 2,782 |  |  |  | 1,147 |  |  |  | 3,792 |  |  |  | 6,962 |  |  |  | 19,673 |
Grade 4 |  |  | 110 |  |  |  | 743 |  |  |  | 193 |  |  |  | 746 |  |  |  | 284 |  |  |  | 557 |  |  |  | 125 |  |  |  | 2,758 |
Total Agriculture |  |  | 82,085 |  |  |  | 56,647 |  |  |  | 54,096 |  |  |  | 49,747 |  |  |  | 35,413 |  |  |  | 76,060 |  |  |  | 91,482 |  |  |  | 445,530 |
Commercial non-real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Grade 1 |  | $ | 98,595 |  |  | $ | 95,488 |  |  | $ | 62,924 |  |  | $ | 92,121 |  |  | $ | 80,450 |  |  | $ | 55,739 |  |  | $ | 389,275 |  |  | $ | 874,592 |
Grade 2 |  |  | 91,386 |  |  |  | 77,032 |  |  |  | 69,492 |  |  |  | 36,190 |  |  |  | 9,123 |  |  |  | 7,194 |  |  |  | 244,435 |  |  |  | 534,852 |
Grade 3 |  |  | 1,521 |  |  |  | 1,886 |  |  |  | 1,916 |  |  |  | 1,345 |  |  |  | 359 |  |  |  | 125 |  |  |  | 37,068 |  |  |  | 44,220 |
Grade 4 |  |  | 823 |  |  |  | 577 |  |  |  | 993 |  |  |  | 910 |  |  |  | 117 |  |  |  | 126 |  |  |  | 262 |  |  |  | 3,808 |
Grade 5 |  |  | — |  |  |  | 318 |  |  |  | 5 |  |  |  | 217 |  |  |  | 10 |  |  |  | 100 |  |  |  | — |  |  |  | 650 |
Total commercial non-real estate |  |  | 192,325 |  |  |  | 175,301 |  |  |  | 135,330 |  |  |  | 130,783 |  |  |  | 90,059 |  |  |  | 63,284 |  |  |  | 671,040 |  |  |  | 1,458,122 |
Consumer non-real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Grade 1 |  | $ | 164,226 |  |  | $ | 116,451 |  |  | $ | 66,756 |  |  | $ | 30,515 |  |  | $ | 12,935 |  |  | $ | 4,518 |  |  | $ | 16,981 |  |  | $ | 412,382 |
Grade 2 |  |  | 17,942 |  |  |  | 15,570 |  |  |  | 11,644 |  |  |  | 6,669 |  |  |  | 2,664 |  |  |  | 1,040 |  |  |  | 16,307 |  |  |  | 71,836 |
Grade 3 |  |  | 1,081 |  |  |  | 1,463 |  |  |  | 1,663 |  |  |  | 834 |  |  |  | 530 |  |  |  | 257 |  |  |  | 10 |  |  |  | 5,838 |
Grade 4 |  |  | 1,875 |  |  |  | 531 |  |  |  | 701 |  |  |  | 494 |  |  |  | 175 |  |  |  | 65 |  |  |  | 3 |  |  |  | 3,844 |
Total consumer non-real estate |  |  | 185,124 |  |  |  | 134,015 |  |  |  | 80,764 |  |  |  | 38,512 |  |  |  | 16,304 |  |  |  | 5,880 |  |  |  | 33,301 |  |  |  | 493,900 |
Oil and gas |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Grade 1 |  | $ | 89,940 |  |  | $ | 10,827 |  |  | $ | 9,121 |  |  | $ | 3,508 |  |  | $ | 8,234 |  |  | $ | 2,643 |  |  | $ | 258,117 |  |  | $ | 382,390 |
Grade 2 |  |  | 51,855 |  |  |  | 7,976 |  |  |  | 5,628 |  |  |  | 3,287 |  |  |  | 2,571 |  |  |  | 2,709 |  |  |  | 76,250 |  |  |  | 150,276 |
Grade 3 |  |  | 967 |  |  |  | 17 |  |  |  | 33 |  |  |  | — |  |  |  | 154 |  |  |  | 40 |  |  |  | 2,270 |  |  |  | 3,481 |
Grade 4 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 36 |  |  |  | 344 |  |  |  | — |  |  |  | 380 |
Total oil and gas |  |  | 142,762 |  |  |  | 18,820 |  |  |  | 14,782 |  |  |  | 6,795 |  |  |  | 10,995 |  |  |  | 5,736 |  |  |  | 336,637 |  |  |  | 536,527 |
Total loans held for investment |  | $ | 1,678,314 |  |  | $ | 1,207,232 |  |  | $ | 1,163,212 |  |  | $ | 1,174,721 |  |  | $ | 690,019 |  |  | $ | 955,024 |  |  | $ | 1,409,725 |  |  | $ | 8,278,247 |
The following tables summarize the Company's gross charge-offs by year of origination for the periods indicated:
|  | Term Loans Amortized Cost Basis by Origination Year |  |  | Revolving Loans |  |  |  |
|  | 2025 |  |  | 2024 |  |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | Prior |  |  | Amortized Cost Basis |  |  | Total |
|  | (Dollars in thousands) |
Three months ended September 30, 2025 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate owner occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  | $ | — |  |  | $ | 29 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 29 |
Commercial real estate non-owner occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  |  | — |  |  |  | 1,006 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,006 |
Construction and development < 60 months |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Construction residential real estate < 60 months |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Residential real estate first lien |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  |  | — |  |  |  | 6 |  |  |  | — |  |  |  | — |  |  |  | 35 |  |  |  | 7 |  |  |  | — |  |  |  | 48 |
Residential real estate all other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  |  | — |  |  |  | 3 |  |  |  | 22 |  |  |  | 25 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 50 |
Agriculture |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 7 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 7 |
Commercial non-real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  |  | 19 |  |  |  | 88 |  |  |  | 55 |  |  |  | 51 |  |  |  | — |  |  |  | 36 |  |  |  | 5 |  |  |  | 254 |
Consumer non-real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  |  | 68 |  |  |  | 340 |  |  |  | 176 |  |  |  | 85 |  |  |  | 40 |  |  |  | 23 |  |  |  | 13 |  |  |  | 745 |
Oil and gas |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total current-period gross charge-offs |  | $ | 87 |  |  | $ | 1,472 |  |  | $ | 253 |  |  | $ | 168 |  |  | $ | 75 |  |  | $ | 66 |  |  | $ | 18 |  |  | $ | 2,139 |
|  | Term Loans Amortized Cost Basis by Origination Year |  |  | Revolving Loans |  |  |  |
|  | 2024 |  |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | 2020 |  |  | Prior |  |  | Amortized Cost Basis |  |  | Total |
|  | (Dollars in thousands) |
Three months ended September 30, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate owner occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial real estate non-owner occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  |  | — |  |  |  | — |  |  |  | 189 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 189 |
Construction and development < 60 months |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Construction residential real estate < 60 months |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Residential real estate first lien |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  |  | — |  |  |  | 24 |  |  |  | 61 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 85 |
Residential real estate all other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  |  | 20 |  |  |  | — |  |  |  | 25 |  |  |  | — |  |  |  | — |  |  |  | 5 |  |  |  | — |  |  |  | 50 |
Agriculture |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  |  | — |  |  |  | 25 |  |  |  | 8 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 33 |
Commercial non-real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  |  | 50 |  |  |  | 91 |  |  |  | 56 |  |  |  | 9 |  |  |  | 84 |  |  |  | 8 |  |  |  | — |  |  |  | 298 |
Consumer non-real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  |  | 166 |  |  |  | 124 |  |  |  | 91 |  |  |  | 38 |  |  |  | 10 |  |  |  | 2 |  |  |  | — |  |  |  | 431 |
Oil and gas |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total current-period gross charge-offs |  | $ | 236 |  |  | $ | 264 |  |  | $ | 430 |  |  | $ | 47 |  |  | $ | 94 |  |  | $ | 15 |  |  | $ | — |  |  | $ | 1,086 |
|  | Term Loans Amortized Cost Basis by Origination Year |  |  | Revolving Loans |  |  |  |
|  | 2025 |  |  | 2024 |  |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | Prior |  |  | Amortized Cost Basis |  |  | Total |
|  | (Dollars in thousands) |
Nine months ended September 30, 2025 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate owner occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  | $ | — |  |  | $ | 29 |  |  | $ | — |  |  | $ | 17 |  |  | $ | 6 |  |  | $ | — |  |  | $ | 58 |  |  | $ | 110 |
Commercial real estate non-owner occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  |  | — |  |  |  | 1,233 |  |  |  | — |  |  |  | 1 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,234 |
Construction and development < 60 months |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3,744 |  |  |  | — |  |  |  | — |  |  |  | 3,744 |
Construction residential real estate < 60 months |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  |  | — |  |  |  | 25 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 25 |
Residential real estate first lien |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  |  | — |  |  |  | 12 |  |  |  | 3 |  |  |  | 2 |  |  |  | 40 |  |  |  | 47 |  |  |  | — |  |  |  | 104 |
Residential real estate all other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  |  | — |  |  |  | 3 |  |  |  | 22 |  |  |  | 25 |  |  |  | — |  |  |  | — |  |  |  | 13 |  |  |  | 63 |
Agriculture |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  |  | — |  |  |  | 10 |  |  |  | 2 |  |  |  | 7 |  |  |  | 5 |  |  |  | — |  |  |  | 17 |  |  |  | 41 |
Commercial non-real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  |  | 43 |  |  |  | 104 |  |  |  | 203 |  |  |  | 178 |  |  |  | 47 |  |  |  | 346 |  |  |  | 60 |  |  |  | 981 |
Consumer non-real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  |  | 93 |  |  |  | 587 |  |  |  | 647 |  |  |  | 219 |  |  |  | 52 |  |  |  | 70 |  |  |  | 18 |  |  |  | 1,686 |
Oil and gas |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total current-period gross charge-offs |  | $ | 136 |  |  | $ | 2,003 |  |  | $ | 877 |  |  | $ | 449 |  |  | $ | 3,894 |  |  | $ | 463 |  |  | $ | 166 |  |  | $ | 7,988 |
|  | Term Loans Amortized Cost Basis by Origination Year |  |  | Revolving Loans |  |  |  |
|  | 2024 |  |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | 2020 |  |  | Prior |  |  | Amortized Cost Basis |  |  | Total |
|  | (Dollars in thousands) |
Nine months ended September 30, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate owner occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 15 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 15 |
Commercial real estate non-owner occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  |  | — |  |  |  | 12 |  |  |  | 189 |  |  |  | 1 |  |  |  | 1 |  |  |  | — |  |  |  | — |  |  |  | 203 |
Construction and development < 60 months |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Construction residential real estate < 60 months |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  |  | — |  |  |  | 3 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3 |
Residential real estate first lien |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  |  | 3 |  |  |  | 47 |  |  |  | 61 |  |  |  | 3 |  |  |  | 4 |  |  |  | 57 |  |  |  | — |  |  |  | 175 |
Residential real estate all other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  |  | 20 |  |  |  | — |  |  |  | 25 |  |  |  | — |  |  |  | — |  |  |  | 7 |  |  |  | 27 |  |  |  | 79 |
Agriculture |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  |  | — |  |  |  | 25 |  |  |  | 45 |  |  |  | 13 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 83 |
Commercial non-real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  |  | 56 |  |  |  | 1,247 |  |  |  | 374 |  |  |  | 149 |  |  |  | 96 |  |  |  | 324 |  |  |  | 1,886 |  |  |  | 4,132 |
Consumer non-real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  |  | 187 |  |  |  | 624 |  |  |  | 338 |  |  |  | 117 |  |  |  | 44 |  |  |  | 47 |  |  |  | 15 |  |  |  | 1,372 |
Oil and gas |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current-period gross charge-offs |  |  | — |  |  |  | 9 |  |  |  | 83 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 92 |
Total current-period gross charge-offs |  | $ | 266 |  |  | $ | 1,967 |  |  | $ | 1,115 |  |  | $ | 298 |  |  | $ | 145 |  |  | $ | 435 |  |  | $ | 1,928 |  |  | $ | 6,154 |
Allowance for Credit Losses Methodology The Company determines its provision for credit losses and allowance for credit losses using the current expected credit loss methodology that is referred to as the current expected credit loss ("CECL") model. The allowance for current expected credit losses is measured on a collective (pool) basis when similar risk characteristics exist. The allowance for credit losses methodology is disclosed in Note (5) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. The following tables detail activity in the allowance for credit losses on loans for the periods presented. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.
|  | Allowance for Credit Losses |
|  | Balance at beginning of period |  |  | Charge- offs |  |  | Recoveries |  |  | Net charge-offs |  |  | Provision for/(benefit from) credit losses on loans |  |  | Balance at end of period |
|  | (Dollars in thousands) |
Three Months Ended September 30, 2025 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate owner occupied |  | $ | 7,248 |  |  | $ | (29 | ) |  | $ | 100 |  |  | $ | 71 |  |  | $ | 212 |  |  | $ | 7,531 |
Commercial real estate non-owner occupied |  |  | 35,217 |  |  |  | (1,006 | ) |  |  | — |  |  |  | (1,006 | ) |  |  | 1,268 |  |  |  | 35,479 |
Construction and development < 60 months |  |  | 4,907 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (77 | ) |  |  | 4,830 |
Construction residential real estate < 60 months |  |  | 2,265 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 262 |  |  |  | 2,527 |
Residential real estate first lien |  |  | 4,645 |  |  |  | (48 | ) |  |  | 10 |  |  |  | (38 | ) |  |  | 162 |  |  |  | 4,769 |
Residential real estate all other |  |  | 1,821 |  |  |  | (50 | ) |  |  | 28 |  |  |  | (22 | ) |  |  | 208 |  |  |  | 2,007 |
Agriculture |  |  | 5,131 |  |  |  | (7 | ) |  |  | 12 |  |  |  | 5 |  |  |  | (10 | ) |  |  | 5,126 |
Commercial non-real estate |  |  | 24,047 |  |  |  | (254 | ) |  |  | 176 |  |  |  | (78 | ) |  |  | 920 |  |  |  | 24,889 |
Consumer non-real estate |  |  | 4,837 |  |  |  | (745 | ) |  |  | 114 |  |  |  | (631 | ) |  |  | 891 |  |  |  | 5,097 |
Oil and gas |  |  | 6,870 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 386 |  |  |  | 7,256 |
Total |  | $ | 96,988 |  |  | $ | (2,139 | ) |  | $ | 440 |  |  | $ | (1,699 | ) |  | $ | 4,222 |  |  | $ | 99,511 |
|  | Allowance for Credit Losses |
|  | Balance at beginning of period |  |  | Charge- offs |  |  | Recoveries |  |  | Net charge-offs |  |  | Provision for/(benefit from) credit losses on loans |  |  | Balance at end of period |
|  | (Dollars in thousands) |
Three Months Ended September 30, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate owner occupied |  | $ | 7,370 |  |  | $ | — |  |  | $ | 46 |  |  | $ | 46 |  |  | $ | (8 | ) |  | $ | 7,408 |
Commercial real estate non-owner occupied |  |  | 33,867 |  |  |  | (189 | ) |  |  | 94 |  |  |  | (95 | ) |  |  | (26 | ) |  |  | 33,746 |
Construction and development < 60 months |  |  | 6,780 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,575 |  |  |  | 8,355 |
Construction residential real estate < 60 months |  |  | 3,519 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (178 | ) |  |  | 3,341 |
Residential real estate first lien |  |  | 5,572 |  |  |  | (85 | ) |  |  | — |  |  |  | (85 | ) |  |  | 159 |  |  |  | 5,646 |
Residential real estate all other |  |  | 1,729 |  |  |  | (50 | ) |  |  | 3 |  |  |  | (47 | ) |  |  | 55 |  |  |  | 1,737 |
Agriculture |  |  | 5,917 |  |  |  | (33 | ) |  |  | 18 |  |  |  | (15 | ) |  |  | 15 |  |  |  | 5,917 |
Commercial non-real estate |  |  | 21,475 |  |  |  | (298 | ) |  |  | 100 |  |  |  | (198 | ) |  |  | 983 |  |  |  | 22,260 |
Consumer non-real estate |  |  | 4,383 |  |  |  | (431 | ) |  |  | 50 |  |  |  | (381 | ) |  |  | 378 |  |  |  | 4,380 |
Oil and gas |  |  | 9,014 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 78 |  |  |  | 9,092 |
Total |  | $ | 99,626 |  |  | $ | (1,086 | ) |  | $ | 311 |  |  | $ | (775 | ) |  | $ | 3,031 |  |  | $ | 101,882 |
|  | Allowance for Credit Losses |
|  | Balance at beginning of period |  |  | Charge- offs |  |  | Recoveries |  |  | Net charge-offs |  |  | Provision for/(benefit from) credit losses on loans |  |  | Balance at end of period |
|  | (Dollars in thousands) |
Nine Months Ended September 30, 2025 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate owner occupied |  | $ | 6,869 |  |  | $ | (110 | ) |  | $ | 141 |  |  | $ | 31 |  |  | $ | 631 |  |  | $ | 7,531 |
Commercial real estate non-owner occupied |  |  | 33,097 |  |  |  | (1,234 | ) |  |  | — |  |  |  | (1,234 | ) |  |  | 3,616 |  |  |  | 35,479 |
Construction and development < 60 months |  |  | 8,671 |  |  |  | (3,744 | ) |  |  | 6 |  |  |  | (3,738 | ) |  |  | (103 | ) |  |  | 4,830 |
Construction residential real estate < 60 months |  |  | 2,336 |  |  |  | (25 | ) |  |  | 3 |  |  |  | (22 | ) |  |  | 213 |  |  |  | 2,527 |
Residential real estate first lien |  |  | 4,568 |  |  |  | (104 | ) |  |  | 22 |  |  |  | (82 | ) |  |  | 283 |  |  |  | 4,769 |
Residential real estate all other |  |  | 1,741 |  |  |  | (63 | ) |  |  | 49 |  |  |  | (14 | ) |  |  | 280 |  |  |  | 2,007 |
Agriculture |  |  | 5,696 |  |  |  | (41 | ) |  |  | 30 |  |  |  | (11 | ) |  |  | (559 | ) |  |  | 5,126 |
Commercial non-real estate |  |  | 24,150 |  |  |  | (981 | ) |  |  | 551 |  |  |  | (430 | ) |  |  | 1,169 |  |  |  | 24,889 |
Consumer non-real estate |  |  | 4,833 |  |  |  | (1,686 | ) |  |  | 278 |  |  |  | (1,408 | ) |  |  | 1,672 |  |  |  | 5,097 |
Oil and gas |  |  | 7,536 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (280 | ) |  |  | 7,256 |
Total |  | $ | 99,497 |  |  | $ | (7,988 | ) |  | $ | 1,080 |  |  | $ | (6,908 | ) |  | $ | 6,922 |  |  | $ | 99,511 |
|  | Allowance for Credit Losses |
|  | Balance at beginning of period |  |  | Charge- offs |  |  | Recoveries |  |  | Net charge-offs |  |  | Provision for/(benefit from) credit losses on loans |  |  | Balance at end of period |
|  | (Dollars in thousands) |
Nine Months Ended September 30, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate owner occupied |  | $ | 7,483 |  |  | $ | (15 | ) |  | $ | 77 |  |  | $ | 62 |  |  | $ | (137 | ) |  | $ | 7,408 |
Commercial real estate non-owner occupied |  |  | 33,080 |  |  |  | (203 | ) |  |  | 94 |  |  |  | (109 | ) |  |  | 775 |  |  |  | 33,746 |
Construction and development < 60 months |  |  | 3,950 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 4,405 |  |  |  | 8,355 |
Construction residential real estate < 60 months |  |  | 3,414 |  |  |  | (3 | ) |  |  | — |  |  |  | (3 | ) |  |  | (70 | ) |  |  | 3,341 |
Residential real estate first lien |  |  | 4,914 |  |  |  | (175 | ) |  |  | 25 |  |  |  | (150 | ) |  |  | 882 |  |  |  | 5,646 |
Residential real estate all other |  |  | 1,646 |  |  |  | (79 | ) |  |  | 11 |  |  |  | (68 | ) |  |  | 159 |  |  |  | 1,737 |
Agriculture |  |  | 6,137 |  |  |  | (83 | ) |  |  | 35 |  |  |  | (48 | ) |  |  | (172 | ) |  |  | 5,917 |
Commercial non-real estate |  |  | 22,745 |  |  |  | (4,132 | ) |  |  | 413 |  |  |  | (3,719 | ) |  |  | 3,234 |  |  |  | 22,260 |
Consumer non-real estate |  |  | 4,401 |  |  |  | (1,372 | ) |  |  | 177 |  |  |  | (1,195 | ) |  |  | 1,174 |  |  |  | 4,380 |
Oil and gas |  |  | 9,030 |  |  |  | (92 | ) |  |  | — |  |  |  | (92 | ) |  |  | 154 |  |  |  | 9,092 |
Total |  | $ | 96,800 |  |  | $ | (6,154 | ) |  | $ | 832 |  |  | $ | (5,322 | ) |  | $ | 10,404 |  |  | $ | 101,882 |
Purchased Credit Deteriorated Loans The Company has previously purchased loans, for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. The Company did not purchase credit-deteriorated loans during the nine months ended September 30, 2025 or September 30, 2024. Collateral Dependent Loans A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. During the nine months ended September 30, 2025 and 2024, no material amount of interest income was recognized on collateral-dependent loans subsequent to their classification as collateral-dependent. The following tables summarize collateral-dependent gross loans held for investment by collateral type and the related specific allocation as follows:
|  | Collateral Type |  |  |  |  |  |  |
|  | Real Estate |  |  | Business Assets |  |  | Other Assets |  |  | Total |  |  | Specific Allocation |
|  | (Dollars in thousands) |  |  |  |  |  |  |
As of September 30, 2025 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate owner occupied |  | $ | 4,445 |  |  | $ | 551 |  |  | $ | — |  |  | $ | 4,996 |  |  | $ | 585 |
Commercial real estate non-owner occupied |  |  | 2,473 |  |  |  | — |  |  |  | — |  |  |  | 2,473 |  |  |  | 644 |
Construction and development < 60 months |  |  | 859 |  |  |  | — |  |  |  | — |  |  |  | 859 |  |  |  | 251 |
Construction residential real estate < 60 months |  |  | 829 |  |  |  | — |  |  |  | — |  |  |  | 829 |  |  |  | 229 |
Residential real estate first lien |  |  | 410 |  |  |  | — |  |  |  | — |  |  |  | 410 |  |  |  | 160 |
Residential real estate all other |  |  | 207 |  |  |  | — |  |  |  | — |  |  |  | 207 |  |  |  | 147 |
Agriculture |  |  | 78 |  |  |  | 164 |  |  |  | 12 |  |  |  | 254 |  |  |  | 124 |
Commercial non-real estate |  |  | — |  |  |  | 8,089 |  |  |  | — |  |  |  | 8,089 |  |  |  | 1,978 |
Consumer non-real estate |  |  | — |  |  |  | — |  |  |  | 624 |  |  |  | 624 |  |  |  | 276 |
Oil and gas |  |  | — |  |  |  | 1,089 |  |  |  | — |  |  |  | 1,089 |  |  |  | 110 |
Total collateral-dependent loans held for investment |  | $ | 9,301 |  |  | $ | 9,893 |  |  | $ | 636 |  |  | $ | 19,830 |  |  | $ | 4,504 |
|  | Collateral Type |  |  |  |  |  |  |
|  | Real Estate |  |  | Business Assets |  |  | Other Assets |  |  | Total |  |  | Specific Allocation |
|  | (Dollars in thousands) |  |  |  |  |  |  |
As of December 31, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate owner occupied |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial real estate non-owner occupied |  |  | 7,890 |  |  |  | — |  |  |  | — |  |  |  | 7,890 |  |  |  | 879 |
Construction and development < 60 months |  |  | 20,142 |  |  |  | — |  |  |  | — |  |  |  | 20,142 |  |  |  | 3,755 |
Construction residential real estate < 60 months |  |  | 206 |  |  |  | — |  |  |  | — |  |  |  | 206 |  |  |  | 75 |
Residential real estate first lien |  |  | 300 |  |  |  | — |  |  |  | — |  |  |  | 300 |  |  |  | 93 |
Residential real estate all other |  |  | 100 |  |  |  | — |  |  |  | — |  |  |  | 100 |  |  |  | 34 |
Agriculture |  |  | 1,584 |  |  |  | 110 |  |  |  | 13 |  |  |  | 1,707 |  |  |  | 688 |
Commercial non-real estate |  |  | — |  |  |  | 10,087 |  |  |  | 108 |  |  |  | 10,195 |  |  |  | 2,222 |
Consumer non-real estate |  |  | — |  |  |  | — |  |  |  | 399 |  |  |  | 399 |  |  |  | 242 |
Oil and gas |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total collateral-dependent loans held for investment |  | $ | 30,222 |  |  | $ | 10,197 |  |  | $ | 520 |  |  | $ | 40,939 |  |  | $ | 7,988 |
Non-Cash Transfers from Loans and Premises and Equipment Transfers from loans and premises and equipment to OREO and repossessed assets are non-cash transactions, and are not included in the consolidated statements of cash flow. Transfers from loans and premises and equipment to OREO and repossessed assets during the periods presented are summarized as follows:
|  | Nine Months Ended September 30, |
|  | 2025 |  |  | 2024 |
|  | (Dollars in thousands) |
Other real estate owned |  | $ | 19,174 |  |  | $ | 10,111 |
Repossessed assets |  |  | 2,245 |  |  |  | 2,332 |
Total |  | $ | 21,419 |  |  | $ | 12,443 |

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- Definition The entire disclosure for claims held for amounts due to entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/310-10/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 835 -SubTopic 30 -Name Accounting Standards Codification -Section 45 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482925/835-30-45-2 + Details
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