XML 52 R37.htm IDEA: XBRL DOCUMENT

LHFI and ACL, LHFI (Tables)

12 Months Ended

Dec. 31, 2025

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Loan Portfolio Held for Investment

At December 31, 2025 and 2024, LHFI consisted of the following ($ in thousands):


		December 31,
		2025				2024
Loans secured by real estate:
Construction, land development and other land		$	549,353			$	587,244
Other secured by 1-4 family residential properties			704,514				650,550
Secured by nonfarm, nonresidential properties			3,304,523				3,533,282
Other real estate secured			2,124,272				1,633,830
Other loans secured by real estate:
Other construction			595,238				829,904
Secured by 1-4 family residential properties			2,351,675				2,298,993
Commercial and industrial loans			1,999,464				1,840,722
Consumer loans			163,754				156,569
State and other political subdivision loans			1,061,584				969,836
Other commercial loans and leases			819,856				589,012
LHFI			13,674,233				13,089,942
Less ACL			157,071				160,270
Net LHFI		$	13,517,162			$	12,929,672

Schedule of Amortized Cost Basis of Loans on Nonaccrual Status

The following tables provide the amortized cost basis of loans on nonaccrual status and loans past due 90 days or more still accruing interest at December 31, 2025 and 2024 ($ in thousands):


		December 31, 2025
		Nonaccrual With No ACL				Total Nonaccrual				Loans Past Due 90 Days or More Still Accruing
Loans secured by real estate:
Construction, land development and other land		$	156			$	355			$	—
Other secured by 1-4 family residential properties			715				8,991				520
Secured by nonfarm, nonresidential properties			2,105				5,579				—
Other real estate secured			234				399				—
Other loans secured by real estate:
Secured by 1-4 family residential properties			3,414				64,293				3,133
Commercial and industrial loans			145				3,615				—
Consumer loans			—				385				449
State and other political subdivision loans			—				—				995
Other commercial loans and leases			764				774				—
Total		$	7,533			$	84,391			$	5,097


		December 31, 2024
		Nonaccrual With No ACL				Total Nonaccrual				Loans Past Due 90 Days or More Still Accruing
Loans secured by real estate:
Construction, land development and other land		$	—			$	366			$	159
Other secured by 1-4 family residential properties			521				7,275				266
Secured by nonfarm, nonresidential properties			426				13,061				—
Other real estate secured			1,904				1,984				—
Other loans secured by real estate:
Secured by 1-4 family residential properties			1,533				31,583				3,253
Commercial and industrial loans			16				24,525				—
Consumer loans			—				236				414
Other commercial loans and leases			—				1,079				—
Total		$	4,400			$	80,109			$	4,092

Aging Analysis of Past Due and Nonaccrual LHFI by Loan Type

The following tables provide an aging analysis of the amortized cost basis of past due LHFI (including nonaccrual LHFI) at December 31, 2025 and 2024 ($ in thousands):


		December 31, 2025
		Past Due
										90 Days				Total				Current
		30-59 Days				60-89 Days				or More				Past Due				Loans				Total LHFI
Loans secured by real estate:
Construction, land development and other land		$	786			$	139			$	—			$	925			$	548,428			$	549,353
Other secured by 1-4 family residential properties			6,118				1,238				3,868				11,224				693,290				704,514
Secured by nonfarm, nonresidential properties			1,798				185				3,829				5,812				3,298,711				3,304,523
Other real estate secured			1				—				316				317				2,123,955				2,124,272
Other loans secured by real estate:
Other construction			—				—				—				—				595,238				595,238
Secured by 1-4 family residential properties			19,838				8,340				34,838				63,016				2,288,659				2,351,675
Commercial and industrial loans			2,828				352				1,014				4,194				1,995,270				1,999,464
Consumer loans			2,109				402				453				2,964				160,790				163,754
State and other political subdivision loans			8				—				995				1,003				1,060,581				1,061,584
Other commercial loans and leases			4				15				—				19				819,837				819,856
Total		$	33,490			$	10,671			$	45,313			$	89,474			$	13,584,759			$	13,674,233


		December 31, 2024
		Past Due
										90 Days				Total				Current
		30-59 Days				60-89 Days				or More				Past Due				Loans				Total LHFI
Loans secured by real estate:
Construction, land development and other land		$	199			$	—			$	324			$	523			$	586,721			$	587,244
Other secured by 1-4 family residential properties			5,656				1,821				3,223				10,700				639,850				650,550
Secured by nonfarm, nonresidential properties			1,488				380				3,111				4,979				3,528,303				3,533,282
Other real estate secured			1,979				—				28				2,007				1,631,823				1,633,830
Other loans secured by real estate:
Other construction			—				—				—				—				829,904				829,904
Secured by 1-4 family residential properties			17,898				7,111				21,524				46,533				2,252,460				2,298,993
Commercial and industrial loans			1,114				13,300				8,835				23,249				1,817,473				1,840,722
Consumer loans			1,930				600				414				2,944				153,625				156,569
State and other political subdivision loans			24				—				—				24				969,812				969,836
Other commercial loans and leases			168				67				69				304				588,708				589,012
Total		$	30,456			$	23,279			$	37,528			$	91,263			$	12,998,679			$	13,089,942

Impact of Modifications Classified as Troubled Debt Restructurings

The following tables present the amortized cost of LHFI of loans modified to borrowers experiencing financial difficulty disaggregated by class of loan and type of modification at the end of each of the periods presented ($ in thousands). The percentage of the amortized cost basis of LHFI that were modified to borrowers experiencing financial difficulty as compared to the amortized cost basis of each class of LHFI is also presented below:


		Year Ended December 31, 2025
		Payment Delay				Term Extension				Total				% of Total Class of Loan
Loans secured by real estate:
Other secured by 1-4 family residential properties		$	—			$	2,708			$	2,708				0.38	%
Other real estate secured			—				15,000				15,000				0.71	%
Other loans secured by real estate:
Secured by 1-4 family residential properties			—				11,974				11,974				0.51	%
Commercial and industrial loans			578				—				578				0.03	%
Total		$	578			$	29,682			$	30,260				0.22	%


		Year Ended December 31, 2024
		Payment Delay				Term Extension				Total				% of Total Class of Loan
Loans secured by real estate:
Other secured by 1-4 family residential properties		$	—			$	3,456			$	3,456				0.53	%
Other loans secured by real estate:
Secured by 1-4 family residential properties			—				129				129				0.01	%
Commercial and industrial loans			6,207				—				6,207				0.34	%
Total		$	6,207			$	3,585			$	9,792				0.07	%


		Year Ended December 31, 2023
		Payment Delay				Term Extension				Total				% of Total Class of Loan
Loans secured by real estate:
Other secured by 1-4 family residential properties		$	—			$	805			$	805				0.13	%
Secured by nonfarm, nonresidential properties			—				359				359				0.01	%
Other loans secured by real estate:
Secured by 1-4 family residential properties			—				1,148				1,148				0.05	%
Commercial and industrial loans			242				—				242				0.01	%
Consumer loans			—				36				36				0.02	%
Other commercial loans and leases			116				31				147				0.03	%
Total		$	358			$	2,379			$	2,737				0.02	%

Troubled debt restructurings on financial effect

The following tables detail the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the periods presented:


		Year Ended December 31, 2025
		Financial Effect
		Payment Delay		Term Extension
Loans secured by real estate:
Other secured by 1-4 family residential properties				Modified five loans and forty-four lines of credit to amortize over 24 month terms
Other real estate secured				Extended maturity of one loan by 12 months
Other loans secured by real estate:
Secured by 1-4 family residential properties				Re-amortized seventy-two loans with term adjusted by a weighted-average of 37 months
Commercial and industrial loans		One loan with eight monthly interest payments deferred and four loans with three interest-only monthly payments


		Year Ended December 31, 2024
		Financial Effect
		Payment Delay		Term Extension
Loans secured by real estate:
Other secured by 1-4 family residential properties				Modified five loans and twenty-five lines of credit to amortize over 24 month terms
Other loans secured by real estate:
Secured by 1-4 family residential properties				Modified nine loans to amortize over weighted average 35 months
Commercial and industrial loans		Thirty-four month principal payment deferral


		Year Ended December 31, 2023
		Financial Effect
		Payment Delay		Term Extension
Loans secured by real estate:
Other secured by 1-4 family residential properties				Modified lines of credit to amortize over 12 month and 24 month terms
Secured by nonfarm, nonresidential properties				One loan renewed and extended maturity by six months
Other loans secured by real estate:
Secured by 1-4 family residential properties				Extended amortization with term adjusted by weighted-average 3.4 years
Commercial and industrial loans		Six month payment deferrals
Consumer loans				Bankruptcies extended amortization with term adjusted by weighted average 1.3 years reducing borrower payment
Other commercial loans and leases		Six month payment deferrals		One loan renewed and extended maturity by seven months

Past Due Modifications Related To Loans Held For Investment

The following tables provide details of the performance of such LHFI that have been modified in the preceding twelve months as of December 31, 2025, 2024 and 2023 ($ in thousands):


		December 31, 2025
		Past Due
										90 Days				Total				Current
		30-59 Days				60-89 Days				or More				Past Due				Loans				Total
Loans secured by real estate:
Other secured by 1-4 family residential properties		$	58			$	—			$	75			$	133			$	2,575			$	2,708
Other real estate secured			—				—				—				—				15,000				15,000
Other loans secured by real estate:
Secured by 1-4 family residential properties			1,700				619				1,620				3,939				8,035				11,974
Commercial and industrial loans			—				—				578				578				—				578
Total		$	1,758			$	619			$	2,273			$	4,650			$	25,610			$	30,260


		December 31, 2024
		Past Due
										90 Days				Total				Current
		30-59 Days				60-89 Days				or More				Past Due				Loans				Total
Loans secured by real estate:
Other secured by 1-4 family residential properties		$	739			$	128			$	50			$	917			$	2,539			$	3,456
Other loans secured by real estate:
Secured by 1-4 family residential properties			—				—				—				—				129				129
Commercial and industrial loans			—				—				6,207				6,207				—				6,207
Total		$	739			$	128			$	6,257			$	7,124			$	2,668			$	9,792


		December 31, 2023
		Past Due
										90 Days				Total				Current
		30-59 Days				60-89 Days				or More				Past Due				Loans				Total
Loans secured by real estate:
Other secured by 1-4 family residential properties		$	290			$	17			$	—			$	307			$	498			$	805
Secured by nonfarm, nonresidential properties			—				—				—				—				359				359
Other loans secured by real estate:
Secured by 1-4 family residential properties			64				—				—				64				1,084				1,148
Commercial and industrial loans			—				—				—				—				242				242
Consumer loans			17				—				—				17				19				36
Other commercial loans and leases			—				—				—				—				147				147
Total		$	371			$	17			$	—			$	388			$	2,349			$	2,737

Schedule Of Amortized Cost Basis Of Collateral Dependent Loans by Class of Loans

The following tables present the amortized cost basis of collateral-dependent loans by class of loans and collateral type at December 31, 2025 and 2024 ($ in thousands):


		December 31, 2025
		Real Estate				Vehicles				Miscellaneous				Total
Loans secured by real estate:
Construction, land development and other land		$	156			$	—			$	—			$	156
Other secured by 1-4 family residential properties			848				—				—				848
Secured by nonfarm, nonresidential properties			2,531				—				—				2,531
Other real estate secured			15,234				—				—				15,234
Other loans secured by real estate:
Secured by 1-4 family residential properties			3,414				—				—				3,414
Commercial and industrial loans			—				1,554				250				1,804
Consumer loans			—				—				103				103
Other commercial loans and leases			—				—				764				764
Total		$	22,183			$	1,554			$	1,117			$	24,854


		December 31, 2024
		Real Estate				Vehicles				Miscellaneous				Total
Loans secured by real estate:
Other secured by 1-4 family residential properties		$	521			$	—			$	—			$	521
Secured by nonfarm, nonresidential properties			9,783				—				—				9,783
Other real estate secured			1,904				—				—				1,904
Other loans secured by real estate:
Secured by 1-4 family residential properties			1,533				—				—				1,533
Commercial and industrial loans			—				1,818				20,685				22,503
Other commercial loans and leases			—				—				896				896
Total		$	13,741			$	1,818			$	21,581			$	37,140

Carrying Amount of Loans by Credit Quality Indicator

The tables below present the amortized cost basis of loans by credit quality indicator, class of loans and year of origination, renewal or major modification based on analyses performed at December 31, 2025 and 2024 ($ in thousands):


		Term Loans by Origination Year
		2025				2024				2023				2022				2021				Prior				Revolving Loans				Total
As of December 31, 2025		Commercial LHFI
Loans secured by real estate:
Construction, land development and other land:
Pass - RR 1 through RR 6		$	326,423			$	70,948			$	16,432			$	17,197			$	7,610			$	1,664			$	47,981			$	488,255
Special Mention - RR 7			—				—				—				—				—				—				—				—
Substandard - RR 8			3,308				1,409				—				602				85				—				—				5,404
Doubtful - RR 9			—				—				—				—				—				—				—				—
Total			329,731				72,357				16,432				17,799				7,695				1,664				47,981				493,659
Current period gross charge-offs			—				—				—				—				—				—				—				—

Other secured by 1-4 family residential properties:
Pass - RR 1 through RR 6		$	42,929			$	22,620			$	18,353			$	18,748			$	19,248			$	3,294			$	7,497			$	132,689
Special Mention - RR 7			—				25				—				349				85				—				—				459
Substandard - RR 8			299				272				319				747				546				296				16				2,495
Doubtful - RR 9			—				—				—				—				—				—				—				—
Total			43,228				22,917				18,672				19,844				19,879				3,590				7,513				135,643
Current period gross charge-offs			—				—				—				(3	)			(122	)			—				—				(125	)

Secured by nonfarm, nonresidential properties:
Pass - RR 1 through RR 6		$	817,790			$	434,506			$	348,386			$	614,738			$	334,813			$	427,591			$	145,497			$	3,123,321
Special Mention - RR 7			—				1,298				23,975				284				—				1,124				—				26,681
Substandard - RR 8			38,224				9,304				2,537				39,015				29,540				33,821				1,979				154,420
Doubtful - RR 9			—				—				—				—				—				1				—				1
Total			856,014				445,108				374,898				654,037				364,353				462,537				147,476				3,304,423
Current period gross charge-offs			—				—				—				—				—				(2,026	)			—				(2,026	)

Other real estate secured:
Pass - RR 1 through RR 6		$	290,854			$	139,454			$	613,122			$	678,691			$	115,394			$	80,235			$	61,191			$	1,978,941
Special Mention - RR 7			—				—				—				25,376				—				—				—				25,376
Substandard - RR 8			—				—				22,392				69,577				332				26,843				163				119,307
Doubtful - RR 9			—				—				—				—				—				—				—				—
Total			290,854				139,454				635,514				773,644				115,726				107,078				61,354				2,123,624
Current period gross charge-offs			—				(4	)			—				—				—				—				—				(4	)


		Term Loans by Origination Year
		2025				2024				2023				2022				2021				Prior				Revolving Loans				Total
As of December 31, 2025		Commercial LHFI
Other loans secured by real estate:
Other construction
Pass - RR 1 through RR 6		$	122,237			$	275,146			$	173,752			$	23,284			$	—			$	—			$	819			$	595,238
Special Mention - RR 7			—				—				—				—				—				—				—				—
Substandard - RR 8			—				—				—				—				—				—				—				—
Doubtful - RR 9			—				—				—				—				—				—				—				—
Total			122,237				275,146				173,752				23,284				—				—				819				595,238
Current period gross charge-offs			—				—				—				—				—				—				—				—

Commercial and industrial loans:
Pass - RR 1 through RR 6		$	803,487			$	303,777			$	172,506			$	88,388			$	39,304			$	20,251			$	523,797			$	1,951,510
Special Mention - RR 7			4,522				602				14,230				119				49				77				15,816				35,415
Substandard - RR 8			2,059				377				470				3,245				683				434				5,173				12,441
Doubtful - RR 9			7				42				16				6				—				1				26				98
Total			810,075				304,798				187,222				91,758				40,036				20,763				544,812				1,999,464
Current period gross charge-offs			—				(708	)			(982	)			(4,016	)			(432	)			(6,389	)			(486	)			(13,013	)

State and other political subdivision loans:
Pass - RR 1 through RR 6		$	300,564			$	109,516			$	64,228			$	180,530			$	97,517			$	286,979			$	22,250			$	1,061,584
Special Mention - RR 7			—				—				—				—				—				—				—				—
Substandard - RR 8			—				—				—				—				—				—				—				—
Doubtful - RR 9			—				—				—				—				—				—				—				—
Total			300,564				109,516				64,228				180,530				97,517				286,979				22,250				1,061,584
Current period gross charge-offs			—				—				—				—				—				—				—				—

Other commercial loans and leases:
Pass - RR 1 through RR 6		$	311,342			$	125,090			$	113,861			$	4,356			$	4,352			$	55,946			$	198,576			$	813,523
Special Mention - RR 7			—				414				362				—				—				—				—				776
Substandard - RR 8			14				1,725				1,917				369				462				29				1,038				5,554
Doubtful - RR 9			—				3				—				—				—				—				—				3
Total			311,356				127,232				116,140				4,725				4,814				55,975				199,614				819,856
Current period gross charge-offs			—				(54	)			—				(116	)			—				(50	)			—				(220	)

Total commercial LHFI		$	3,064,059			$	1,496,528			$	1,586,858			$	1,765,621			$	650,020			$	938,586			$	1,031,819			$	10,533,491
Total commercial LHFI gross charge-offs		$	—			$	(766	)		$	(982	)		$	(4,135	)		$	(554	)		$	(8,465	)		$	(486	)		$	(15,388	)


		Term Loans by Origination Year
		2025				2024				2023				2022				2021				Prior				Revolving Loans				Total
As of December 31, 2025		Consumer LHFI
Loans secured by real estate:
Construction, land development and other land:
Current		$	30,069			$	9,491			$	10,191			$	2,500			$	1,198			$	1,638			$	—			$	55,087
Past due 30-89 days			—				222				321				—				—				1				—				544
Past due 90 days or more			—				—				—				—				—				—				—				—
Nonaccrual			—				—				9				—				54				—				—				63
Total			30,069				9,713				10,521				2,500				1,252				1,639				—				55,694
Current period gross charge-offs			—				—				—				—				—				—				—				—

Other secured by 1-4 family residential properties:
Current		$	22,785			$	18,105			$	13,944			$	5,352			$	4,352			$	8,656			$	481,812			$	555,006
Past due 30-89 days			321				189				643				36				1				509				3,632				5,331
Past due 90 days or more			—				—				—				—				2				—				518				520
Nonaccrual			26				39				124				49				145				192				7,439				8,014
Total			23,132				18,333				14,711				5,437				4,500				9,357				493,401				568,871
Current period gross charge-offs			—				(10	)			—				(56	)			—				(31	)			(714	)			(811	)

Secured by nonfarm, nonresidential properties:
Current		$	100			$	—			$	—			$	—			$	—			$	—			$	—			$	100
Past due 30-89 days			—				—				—				—				—				—				—				—
Past due 90 days or more			—				—				—				—				—				—				—				—
Nonaccrual			—				—				—				—				—				—				—				—
Total			100				—				—				—				—				—				—				100
Current period gross charge-offs			—				—				—				—				—				—				—				—

Other real estate secured:
Current		$	466			$	141			$	—			$	—			$	—			$	41			$	—			$	648
Past due 30-89 days			—				—				—				—				—				—				—				—
Past due 90 days or more			—				—				—				—				—				—				—				—
Nonaccrual			—				—				—				—				—				—				—				—
Total			466				141				—				—				—				41				—				648
Current period gross charge-offs			—				—				—				—				—				—				—				—

Other loans secured by real estate:
Secured by 1-4 family residential properties
Current		$	325,999			$	227,009			$	193,722			$	712,091			$	408,534			$	395,901			$	—			$	2,263,256
Past due 30-89 days			—				167				3,670				9,108				4,949				3,100				—				20,994
Past due 90 days or more			—				—				866				1,598				134				534				—				3,132
Nonaccrual			505				901				13,238				31,622				10,713				7,314				—				64,293
Total			326,504				228,077				211,496				754,419				424,330				406,849				—				2,351,675
Current period gross charge-offs			—				—				(619	)			(1,276	)			(142	)			(74	)			—				(2,111	)


		Term Loans by Origination Year
		2025				2024				2023				2022				2021				Prior				Revolving Loans				Total
As of December 31, 2025		Consumer LHFI
Consumer loans:
Current		$	54,959			$	27,573			$	7,898			$	7,587			$	6,892			$	239			$	55,321			$	160,469
Past due 30-89 days			597				228				143				31				13				—				1,440				2,452
Past due 90 days or more			28				32				17				1				—				—				370				448
Nonaccrual			117				43				155				36				23				2				9				385
Total			55,701				27,876				8,213				7,655				6,928				241				57,140				163,754
Current period gross charge-offs			(4,847	)			(494	)			(474	)			(114	)			(24	)			(26	)			(2,459	)			(8,438	)

Total consumer LHFI		$	435,972			$	284,140			$	244,941			$	770,011			$	437,010			$	418,127			$	550,541			$	3,140,742
Total consumer LHFI gross charge-offs		$	(4,847	)		$	(504	)		$	(1,093	)		$	(1,446	)		$	(166	)		$	(131	)		$	(3,173	)		$	(11,360	)

Total LHFI		$	3,500,031			$	1,780,668			$	1,831,799			$	2,535,632			$	1,087,030			$	1,356,713			$	1,582,360			$	13,674,233
Total current period gross charge-offs		$	(4,847	)		$	(1,270	)		$	(2,075	)		$	(5,581	)		$	(720	)		$	(8,596	)		$	(3,659	)		$	(26,748	)


		Term Loans by Origination Year
		2024				2023				2022				2021				2020				Prior				Revolving Loans				Total
As of December 31, 2024		Commercial LHFI
Loans secured by real estate:
Construction, land development and other land:
Pass - RR 1 through RR 6		$	324,775			$	83,503			$	33,580			$	23,124			$	8,145			$	1,587			$	42,469			$	517,183
Special Mention - RR 7			2,165				—				—				—				—				—				2,002				4,167
Substandard - RR 8			17				62				226				983				—				—				176				1,464
Doubtful - RR 9			—				—				—				—				—				—				—				—
Total			326,957				83,565				33,806				24,107				8,145				1,587				44,647				522,814
Current period gross charge-offs			—				—				—				—				—				(24	)			—				(24	)

Other secured by 1-4 family residential properties:
Pass - RR 1 through RR 6		$	31,013			$	24,339			$	22,693			$	24,090			$	11,635			$	2,106			$	7,742			$	123,618
Special Mention - RR 7			27				—				—				32				—				—				—				59
Substandard - RR 8			125				375				555				328				—				191				27				1,601
Doubtful - RR 9			—				—				—				—				—				—				—				—
Total			31,165				24,714				23,248				24,450				11,635				2,297				7,769				125,278
Current period gross charge-offs			—				—				—				—				—				(16	)			—				(16	)

Secured by nonfarm, nonresidential properties:
Pass - RR 1 through RR 6		$	542,747			$	441,159			$	880,511			$	429,929			$	464,504			$	392,802			$	127,812			$	3,279,464
Special Mention - RR 7			16,266				—				52,093				—				17,978				3,335				—				89,672
Substandard - RR 8			10,007				7,321				41,686				37,915				25,601				41,598				—				164,128
Doubtful - RR 9			11				—				—				—				—				7				—				18
Total			569,031				448,480				974,290				467,844				508,083				437,742				127,812				3,533,282
Current period gross charge-offs			—				—				—				(2,529	)			—				(16	)			—				(2,545	)

Other real estate secured:
Pass - RR 1 through RR 6		$	152,314			$	157,827			$	726,814			$	233,861			$	137,786			$	43,478			$	7,434			$	1,459,514
Special Mention - RR 7			—				7,450				15,481				41,019				—				—				263				64,213
Substandard - RR 8			14,610				—				26,685				42,636				252				25,419				244				109,846
Doubtful - RR 9			—				—				—				—				—				—				—				—
Total			166,924				165,277				768,980				317,516				138,038				68,897				7,941				1,633,573
Current period gross charge-offs			—				—				(89	)			—				—				—				—				(89	)


		Term Loans by Origination Year
		2024				2023				2022				2021				2020				Prior				Revolving Loans				Total
As of December 31, 2024		Commercial LHFI
Other loans secured by real estate:
Other construction
Pass - RR 1 through RR 6		$	115,221			$	410,064			$	201,526			$	20,647			$	—			$	—			$	18,400			$	765,858
Special Mention - RR 7			—				2,250				24,557				—				—				—				—				26,807
Substandard - RR 8			—				—				17,820				—				19,419				—				—				37,239
Doubtful - RR 9			—				—				—				—				—				—				—				—
Total			115,221				412,314				243,903				20,647				19,419				—				18,400				829,904
Current period gross charge-offs			—				(14	)			(2,493	)			—				—				—				—				(2,507	)

Commercial and industrial loans:
Pass - RR 1 through RR 6		$	505,557			$	365,724			$	231,875			$	98,318			$	45,551			$	27,456			$	462,740			$	1,737,221
Special Mention - RR 7			—				564				14,066				15				—				—				13,836				28,481
Substandard - RR 8			7,204				1,113				39,698				5,091				891				12,905				7,598				74,500
Doubtful - RR 9			227				—				35				145				1				2				110				520
Total			512,988				367,401				285,674				103,569				46,443				40,363				484,284				1,840,722
Current period gross charge-offs			(341	)			(1,211	)			(640	)			(3,251	)			(158	)			(3,132	)			(315	)			(9,048	)

State and other political subdivision loans:
Pass - RR 1 through RR 6		$	156,130			$	82,532			$	212,528			$	135,251			$	78,543			$	302,709			$	2,143			$	969,836
Special Mention - RR 7			—				—				—				—				—				—				—				—
Substandard - RR 8			—				—				—				—				—				—				—				—
Doubtful - RR 9			—				—				—				—				—				—				—				—
Total			156,130				82,532				212,528				135,251				78,543				302,709				2,143				969,836
Current period gross charge-offs			—				—				—				—				—				—				—				—

Other commercial loans and leases:
Pass - RR 1 through RR 6		$	157,619			$	148,099			$	7,371			$	9,800			$	15,606			$	45,227			$	203,345			$	587,067
Special Mention - RR 7			—				—				116				48				—				—				—				164
Substandard - RR 8			55				682				116				12				—				—				901				1,766
Doubtful - RR 9			9				—				6				—				—				—				—				15
Total			157,683				148,781				7,609				9,860				15,606				45,227				204,246				589,012
Current period gross charge-offs			(25	)			—				(38	)			—				—				(32	)			—				(95	)

Total commercial LHFI		$	2,036,099			$	1,733,064			$	2,550,038			$	1,103,244			$	825,912			$	898,822			$	897,242			$	10,044,421
Total commercial LHFI gross charge-offs		$	(366	)		$	(1,225	)		$	(3,260	)		$	(5,780	)		$	(158	)		$	(3,220	)		$	(315	)		$	(14,324	)


		Term Loans by Origination Year
		2024				2023				2022				2021				2020				Prior				Revolving Loans				Total
As of December 31, 2024		Consumer LHFI
Loans secured by real estate:
Construction, land development and other land:
Current		$	31,478			$	22,752			$	4,302			$	2,762			$	930			$	1,804			$	—			$	64,028
Past due 30-89 days			—				47				11				—				—				106				—				164
Past due 90 days or more			91				—				—				68				—				—				—				159
Nonaccrual			—				31				21				4				—				23				—				79
Total			31,569				22,830				4,334				2,834				930				1,933				—				64,430
Current period gross charge-offs			—				—				—				—				—				(8	)			—				(8	)

Other secured by 1-4 family residential properties:
Current		$	24,756			$	17,202			$	6,733			$	5,260			$	3,651			$	9,563			$	445,598			$	512,763
Past due 30-89 days			569				38				67				66				3				579				4,524				5,846
Past due 90 days or more			21				—				8				—				—				17				219				265
Nonaccrual			71				5				69				44				103				593				5,513				6,398
Total			25,417				17,245				6,877				5,370				3,757				10,752				455,854				525,272
Current period gross charge-offs			(29	)			(87	)			(233	)			(40	)			(31	)			(76	)			—				(496	)

Other real estate secured:
Current		$	161			$	—			$	—			$	—			$	68			$	28			$	—			$	257
Past due 30-89 days			—				—				—				—				—				—				—				—
Past due 90 days or more			—				—				—				—				—				—				—				—
Nonaccrual			—				—				—				—				—				—				—				—
Total			161				—				—				—				68				28				—				257
Current period gross charge-offs			—				—				—				—				—				—				—				—

Other loans secured by real estate:
Secured by 1-4 family residential properties
Current		$	274,500			$	224,266			$	808,527			$	459,191			$	161,856			$	314,906			$	—			$	2,243,246
Past due 30-89 days			169				4,405				9,883				4,082				814				1,558				—				20,911
Past due 90 days or more			4				1,263				1,098				461				170				257				—				3,253
Nonaccrual			568				3,744				17,306				5,009				1,394				3,562				—				31,583
Total			275,241				233,678				836,814				468,743				164,234				320,283				—				2,298,993
Current period gross charge-offs			—				(228	)			(9,910	)			(143	)			(6	)			(17	)			—				(10,304	)

Consumer loans:
Current		$	55,908			$	22,226			$	12,922			$	4,654			$	1,188			$	105			$	56,423			$	153,426
Past due 30-89 days			844				396				323				4				—				13				913				2,493
Past due 90 days or more			38				67				17				4				—				—				288				414
Nonaccrual			25				49				63				61				19				—				19				236
Total			56,815				22,738				13,325				4,723				1,207				118				57,643				156,569
Current period gross charge-offs			(5,929	)			(785	)			(470	)			(131	)			(100	)			(337	)			(2,065	)			(9,817	)

Total consumer LHFI		$	389,203			$	296,491			$	861,350			$	481,670			$	170,196			$	333,114			$	513,497			$	3,045,521
Total consumer LHFI gross charge-offs		$	(5,958	)		$	(1,100	)		$	(10,613	)		$	(314	)		$	(137	)		$	(438	)		$	(2,065	)		$	(20,625	)

Total LHFI		$	2,425,302			$	2,029,555			$	3,411,388			$	1,584,914			$	996,108			$	1,231,936			$	1,410,739			$	13,089,942
Total current period gross charge-offs		$	(6,324	)		$	(2,325	)		$	(13,873	)		$	(6,094	)		$	(295	)		$	(3,658	)		$	(2,380	)		$	(34,949	)

Summary of Trustmark's Portfolio Segments, Loan Classes, Loan Pools and the ACL Methodology and Loss Drivers

The following table provides a description of each of Trustmark’s portfolio segments, loan classes, loan pools and the ACL methodology and loss drivers at December 31, 2025 and 2024:


Portfolio Segment		Loan Class		Loan Pool		Methodology		Loss Drivers
Loans secured by real estate		Construction, land development and other land		1-4 family residential construction		DCF		BBB 7-10 US CBI (1), National Unemployment
				Lots and development		DCF		National HPI, National Unemployment
				Unimproved land		DCF		National HPI, National Unemployment
				All other consumer		DCF		National HPI, National Unemployment
		Other secured by 1-4 family residential properties		Consumer 1-4 family - 1st liens		DCF		National HPI, Southern Unemployment (2)
				All other consumer		DCF		National HPI, National Unemployment
				Nonresidential owner-occupied		DCF		Southern Unemployment, National CRE Price Index
		Secured by nonfarm, nonresidential properties		Nonowner-occupied - hotel/motel		DCF		National CRE Price Index, Southern Unemployment
				Nonowner-occupied - office		DCF		National CRE Price Index, Southern Unemployment
				Nonowner-occupied- Retail		DCF		National CRE Price Index, Southern Unemployment
				Nonowner-occupied - senior living/nursing homes		DCF		National CRE Price Index, Southern Unemployment
				Nonowner-occupied - all other		DCF		National CRE Price Index, Southern Unemployment
				Nonresidential owner-occupied		DCF		Southern Unemployment, National CRE Price Index
		Other real estate secured		Nonresidential nonowner -occupied - apartments		DCF		National CRE Price Index, Southern Unemployment
				Nonresidential owner-occupied		DCF		Southern Unemployment, National CRE Price Index
				Nonowner-occupied - all other		DCF		National CRE Price Index, Southern Unemployment
Other loans secured by real estate		Other construction		Other construction		DCF		National CRE Price Index, National Unemployment, BBB 7-10 US CBI
		Secured by 1-4 family residential properties		Trustmark mortgage		WARM		Southern Unemployment
Commercial and industrial loans		Commercial and industrial loans		Commercial and industrial - non-working capital		DCF		Trustmark historical data
				Commercial and industrial - working capital		DCF		Trustmark historical data
				Equipment finance loans		WARM		Southern Unemployment, National GDP
				Credit cards		WARM		Trustmark call report data
Consumer loans		Consumer loans		Credit cards		WARM		Trustmark call report data
				Overdrafts		Loss Rate		Trustmark historical data
				All other consumer		DCF		National HPI, National Unemployment
State and other political subdivision loans		State and other political subdivision loans		Obligations of state and political subdivisions		DCF		Moody's Bond Default Study
Other commercial loans and leases		Other commercial loans and leases		Other loans		DCF		BBB 7-10 US CBI, Southern Unemployment
				Commercial and industrial - non-working capital		DCF		Trustmark historical data
				Commercial and industrial - working capital		DCF		Trustmark historical data
				Equipment finance leases		WARM		Southern Unemployment, National GDP

(1) Loss driver was National HPI at December 31, 2024.

(2) Loss driver was National Unemployment at December 31, 2024.

Change in Allowance for Loan Losses

The following tables disaggregate the ACL, LHFI and the amortized cost basis of the loans by the measurement methodology used at December 31, 2025 and 2024 ($ in thousands):


		December 31, 2025
		ACL												LHFI
		Individually Evaluated for Credit Loss				Collectively Evaluated for Credit Loss				Total ACL				Individually Evaluated for Credit Loss				Collectively Evaluated for Credit Loss				Total LHFI
Loans secured by real estate:
Construction, land development and other land		$	—			$	6,632			$	6,632			$	156			$	549,197			$	549,353
Other secured by 1-4 family residential properties			99				13,485				13,584				848				703,666				704,514
Secured by nonfarm, nonresidential properties			141				35,042				35,183				2,531				3,301,992				3,304,523
Other real estate secured			—				20,410				20,410				15,234				2,109,038				2,124,272
Other loans secured by real estate:
Other construction			—				4,889				4,889				—				595,238				595,238
Secured by 1-4 family residential properties			—				41,087				41,087				3,414				2,348,261				2,351,675
Commercial and industrial loans			811				19,758				20,569				1,804				1,997,660				1,999,464
Consumer loans			103				5,740				5,843				103				163,651				163,754
State and other political subdivision loans			—				865				865				—				1,061,584				1,061,584
Other commercial loans and leases			—				8,009				8,009				764				819,092				819,856
Total		$	1,154			$	155,917			$	157,071			$	24,854			$	13,649,379			$	13,674,233


		December 31, 2024
		ACL												LHFI
		Individually Evaluated for Credit Loss				Collectively Evaluated for Credit Loss				Total				Individually Evaluated for Credit Loss				Collectively Evaluated for Credit Loss				Total
Loans secured by real estate:
Construction, land development and other land		$	—			$	6,452			$	6,452			$	—			$	587,244			$	587,244
Other secured by 1-4 family residential properties			—				11,347				11,347				521				650,029				650,550
Secured by nonfarm, nonresidential properties			2,251				35,645				37,896				9,783				3,523,499				3,533,282
Other real estate secured			—				19,491				19,491				1,904				1,631,926				1,633,830
Other loans secured by real estate:
Other construction			—				13,297				13,297				—				829,904				829,904
Secured by 1-4 family residential properties			—				32,129				32,129				1,533				2,297,460				2,298,993
Commercial and industrial loans			10,518				16,502				27,020				22,503				1,818,219				1,840,722
Consumer loans			—				5,141				5,141				—				156,569				156,569
State and other political subdivision loans			—				1,250				1,250				—				969,836				969,836
Other commercial loans and leases			892				5,355				6,247				896				588,116				589,012
Total		$	13,661			$	146,609			$	160,270			$	37,140			$	13,052,802			$	13,089,942

Changes in the ACL, LHFI were as follows for the periods presented ($ in thousands):


		Years Ended December 31,
		2025				2024				2023
Balance at beginning of period		$	160,270			$	139,367			$	120,214
Loans charge-off, sale of 1-4 family mortgage loans			—				(8,633	)			—
Loans charged-off			(26,748	)			(26,316	)			(17,515	)
Recoveries			9,238				9,932				9,306
Net (charge-offs) recoveries			(17,510	)			(25,017	)			(8,209	)
PCL, LHFI			14,311				37,287				27,362
PCL, LHFI sale of 1-4 family mortgage loans			—				8,633				—
Balance at end of period		$	157,071			$	160,270			$	139,367

The following tables detail changes in the ACL, LHFI by loan class for the years ended December 31, 2025 and 2024 ($ in thousands):


		2025
		Balance																Balance
		January 1,				Charge-offs				Recoveries				PCL				December 31,
Loans secured by real estate:
Construction, land development and other land		$	6,452			$	—			$	225			$	(45	)		$	6,632
Other secured by 1-4 family residential properties			11,347				(936	)			325				2,848				13,584
Secured by nonfarm, nonresidential properties			37,896				(2,026	)			159				(846	)			35,183
Other real estate secured			19,491				(4	)			78				845				20,410
Other loans secured by real estate:
Other construction			13,297				—				35				(8,443	)			4,889
Secured by 1-4 family residential properties			32,129				(2,111	)			511				10,558				41,087
Commercial and industrial loans			27,020				(13,013	)			1,715				4,847				20,569
Consumer loans			5,141				(8,438	)			6,077				3,063				5,843
State and other political subdivision loans			1,250				—				—				(385	)			865
Other commercial loans and leases			6,247				(220	)			113				1,869				8,009
Total		$	160,270			$	(26,748	)		$	9,238			$	14,311			$	157,071


		2024
		Balance																Balance
		January 1,				Charge-offs				Recoveries				PCL				December 31,
Loans secured by real estate:
Construction, land development and other land		$	17,192			$	(32	)		$	1,024			$	(11,732	)		$	6,452
Other secured by 1-4 family residential properties			12,942				(512	)			672				(1,755	)			11,347
Secured by nonfarm, nonresidential properties			24,043				(2,545	)			154				16,244				37,896
Other real estate secured			4,488				(89	)			1				15,091				19,491
Other loans secured by real estate:
Other construction			5,758				(2,507	)			714				9,332				13,297
Secured by 1-4 family residential properties			34,794				(10,304	)			152				7,487				32,129
Commercial and industrial loans			26,638				(9,048	)			963				8,467				27,020
Consumer loans			5,794				(9,817	)			6,187				2,977				5,141
State and other political subdivision loans			646				—				—				604				1,250
Other commercial loans and leases			7,072				(95	)			65				(795	)			6,247
Total		$	139,367			$	(34,949	)		$	9,932			$	45,920			$	160,270

The PCL, LHFI for the year ended December 31, 2024 was primarily attributable to loan growth, changes in the macroeconomic forecast, an increase in specific reserves on individually analyzed credits and net adjustments to the qualitative factors.

The negative PCL, LHFI for the construction, land development and other land portfolio and other secured by 1-4 family residential properties portfolio for the year ended December 31, 2024 was primarily due to changes in the macroeconomic forecast associated with these specific loss driver models as a result of the loss driver update for these loan portfolios. The negative PCL, LHFI for the other commercial loans and leases portfolio for the year ended December 31, 2024 was primarily due to a decrease in loan balances.