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Loans Held for Investment and Allowance for Credit Losses on Loans
 9 Months Ended
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 approximately $6.0 million compared to $14.8 million during the year ended December 31, 2024.

Nonaccrual loans

The Company did not 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