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Loans
 9 Months Ended
Sep. 30, 2025
Receivables [Abstract]  
Loans LOANS
The following table presents a summary of loans by category:
($ in thousands)September 30, 2025December 31, 2024
Commercial and industrial$4,948,761 $4,720,428 
Real estate:  
Commercial - investor owned2,824,200 2,607,755 
Commercial - owner occupied2,348,111 2,359,956 
Construction and land development859,827 892,563 
Residential364,516 358,923 
Total real estate loans6,396,654 6,219,197 
Other238,881 281,193 
Loans, before unearned loan fees11,584,296 11,220,818 
Unearned loan fees, net(1,187)(463)
Loans, including unearned loan fees$11,583,109 $11,220,355 

The loan balance includes a net premium on acquired loans of $6.4 million and $7.8 million at September 30, 2025 and December 31, 2024, respectively. At September 30, 2025 and December 31, 2024, loans and securities of $6.4 billion and $5.7 billion, respectively, were pledged to the FHLB and the Federal Reserve.

Accrued interest totaled $56.5 million and $52.4 million at September 30, 2025 and December 31, 2024, respectively, and was reported in “Other assets” on the consolidated balance sheets.

The Company sold $22.2 million and $78.0 million of the guaranteed portion of SBA 7(a) loans during the three and nine months ended September 30, 2025, respectively. A gain on sale of $1.1 million and $4.2 million was recognized for the three and nine months ended September 30, 2025, respectively. During the nine months ended September 30, 2024, the Company sold the guaranteed portion of SBA 7(a) loans of $23.1 million resulting in a gain on sale of $1.4 million. There were no sales in the three months ended September 30, 2024.
The Company had $5.8 million of consumer mortgage loans secured by residential real estate in process of foreclosure as of September 30, 2025, compared to none at December 31, 2024.

A summary of the activity, by loan category, in the ACL on loans for the three and nine months ended September 30, 2025 and 2024 is as follows:
($ in thousands)Commercial and industrialCRE - investor ownedCRE -
owner occupied		Construction and land developmentResidential real estateOtherTotal
Allowance for credit losses on loans:
Balance at June 30, 2025
$72,081 $30,189 $17,643 $12,964 $8,484 $3,772 $145,133 
Provision for credit losses3,533 2,469 1,055 458 203 60 7,778 
Charge-offs(4,345)— — — (295)(315)(4,955)
Recoveries234 67 292 19 232 54 898 
Balance at September 30, 2025
$71,503 $32,725 $18,990 $13,441 $8,624 $3,571 $148,854 

($ in thousands)Commercial and industrialCRE - investor ownedCRE -
owner occupied		Construction and land developmentResidential real estateOtherTotal
Allowance for credit losses on loans:
Balance at December 31, 2024
$63,231 $34,217 $20,400 $9,837 $6,534 $3,731 $137,950 
Provision (benefit) for credit losses11,029 (1,686)(1,022)3,713 2,233 265 14,532 
Charge-offs(7,358)— (1,034)(146)(889)(610)(10,037)
Recoveries4,601 194 646 37 746 185 6,409 
Balance at September 30, 2025
$71,503 $32,725 $18,990 $13,441 $8,624 $3,571 $148,854 

($ in thousands)Commercial and industrialCRE - investor ownedCRE -
owner occupied		Construction and land developmentResidential real estateOtherTotal
Allowance for credit losses on loans:       
Balance at June 30, 2024
$61,478 $31,903 $24,316 $11,504 $5,588 $4,675 $139,464 
Provision (benefit) for credit losses2,360 1,050 (935)1,766 266 (343)4,164 
Charge-offs(440)— (906)(3,224)(19)(184)(4,773)
Recoveries662 30 25 21 140 45 923 
Balance at September 30, 2024
$64,060 $32,983 $22,500 $10,067 $5,975 $4,193 $139,778 

($ in thousands)Commercial and industrialCRE - investor ownedCRE -
owner occupied		Construction and land developmentResidential real estateOtherTotal
Allowance for credit losses on loans:       
Balance at December 31, 2023
$58,886 $31,280 $23,405 $10,198 $6,142 $4,860 $134,771 
Provision (benefit) for credit losses9,146 1,914 1,818 3,042 (415)(179)15,326 
Charge-offs(6,349)(305)(2,773)(3,224)(760)(725)(14,136)
Recoveries2,377 94 50 51 1,008 237 3,817 
Balance at September 30, 2024
$64,060 $32,983 $22,500 $10,067 $5,975 $4,193 $139,778 

The ACL on sponsor finance loans, which is included in the categories above, represented $27.5 million and $14.5 million at September 30, 2025 and December 31, 2024, respectively. The increase in ACL on sponsor finance loans from December 31, 2024 is primarily due to an increase in special mention and classified sponsor finance loan balances.
The CECL methodology incorporates various economic scenarios. The Company utilizes three forecasts in the model: Moody’s baseline, a stronger near-term growth upside and a moderate downside forecast. The Company weights these scenarios at 40%, 30%, and 30%, respectively, which added approximately $10.7 million to the ACL on loans over the baseline model at September 30, 2025. The baseline forecast incorporates an expectation that the federal funds rate will continue to fall in 2025 and 2026. The Company has also recognized various risks posed by loans in certain segments, including the commercial office sector, by allocating additional reserves to those segments. Some of the key risks to the forecasts that could result in future provision for credit losses are market reactions to the Federal Reserve policy actions that could push the economy into a recession, persistently higher inflation (including the impact of tariffs), tightening in the credit markets, and further weakness in the financial system.

In addition to the CECL methodology, the Company incorporates qualitative adjustments into the ACL on loans to capture credit risks inherent within the loan portfolio that are not captured in the CECL model. Included in these risks are 1) changes in lending policies and procedures, 2) actual and expected changes in business and economic conditions, 3) changes in the nature and volume of the portfolio, 4) changes in lending management, 5) changes in volume and the severity of past due loans, 6) changes in the quality of the loan review system, 7) changes in the value of underlying collateral, 8) the existence and effect of concentrations of credit and 9) other factors such as the regulatory, legal and competitive environments and events such as natural disasters and pandemics. At September 30, 2025, the ACL on loans included a qualitative adjustment of approximately $37.0 million. Of this amount, approximately $21.4 million was allocated to sponsor finance loans due to their mostly unsecured nature.
The current year-to-date gross charge-offs by loan class and year of origination is presented in the following tables:
September 30, 2025
Term Loans by Origination Year
($ in thousands)20252024202320222021PriorRevolving Loans Converted to Term LoansRevolving LoansTotal
Commercial and industrial$— $1,002 $3,688 $243 $35 $684 $656 $797 $7,105 
Real estate:
Commercial - owner occupied— — 285 — 80 669 — — 1,034 
Construction and land development— — — 146 — — — — 146 
Residential— — — — — 623 266 — 889 
Other— — — — 177 65 5 — 247 
Total charge-offs by origination year$— $1,002 $3,973 $389 $292 $2,041 $927 $797 $9,421 
Total gross charge-offs by performing status616 
Total gross charge-offs$10,037 

December 31, 2024
Term Loans by Origination Year
($ in thousands)20242023202220212020PriorRevolving Loans Converted to Term LoansRevolving LoansTotal
Commercial and industrial$312 $2,646 $3,043 $35 $166 $772 $2,205 $3,589 $12,768 
Real estate:
Commercial - investor owned— — — 252 — 448 — — 700 
Commercial - owner occupied— — 41 475 10 2,548 — — 3,074 
Construction and land development— — — — 3,224 — — — 3,224 
Residential— — 166 15 — 471 202 24 878 
Other4 17 — 58 — 79 103 1 262 
Total charge-offs by origination year$316 $2,663 $3,250 $835 $3,400 $4,318 $2,510 $3,614 $20,906 
Total gross charge-offs by performing status968 
Total gross charge-offs$21,874 
Nonperforming loans were $127.9 million at September 30, 2025, compared to $42.7 million at December 31, 2024. The increase in nonperforming loans largely reflects two borrowing relationships that share some common ownership where the entities filed bankruptcy as a result of a business dispute between the owners of the entities. As a result of the Bank’s senior secured first lien collateral position with respect to the real property owned by the borrowers, the Company expects to collect the full balance of these loans. The following tables present the recorded investment in nonperforming loans by category, excluding government guaranteed balances:
September 30, 2025
($ in thousands)NonaccrualLoans over 90 days past due and still accruing interestTotal nonperforming loansNonaccrual loans with no allowance
Commercial and industrial$29,307 $405 $29,712 $15,159 
Real estate: 
    Commercial - investor owned35,361 43,083 78,444 5,842 
    Commercial - owner occupied10,654 — 10,654 6,879 
    Construction and land development386 — 386 231 
    Residential3,123 5,525 8,648 2,882 
Other— 34 34 — 
       Total$78,831 $49,047 $127,878 $30,993 

December 31, 2024
($ in thousands)NonaccrualLoans over 90 days past due and still accruing interestTotal nonperforming loansNonaccrual loans with no allowance
Commercial and industrial$15,810 $11 $15,821 $4,279 
Real estate:
    Commercial - investor owned14,186 — 14,186 2,106 
    Commercial - owner occupied10,910 — 10,910 8,235 
    Construction and land development1,503 — 1,503 1,503 
    Residential258 — 258 — 
Other— 9 9 — 
       Total$42,667 $20 $42,687 $16,123 

The nonperforming loan balances at September 30, 2025 and December 31, 2024 exclude government guaranteed balances of $33.5 million and $22.0 million respectively.

Interest income recognized on nonaccrual loans was immaterial during the three and nine months ended September 30, 2025 and 2024.
Collateral-dependent nonperforming loans by class of loan is presented as of the dates indicated:
September 30, 2025
Type of Collateral
($ in thousands)Commercial Real EstateResidential Real EstateBlanket LienOther
Commercial and industrial$— $23 $3,210 $15,644 
Real estate:
Commercial - investor owned76,256 — — — 
Commercial - owner occupied4,177 456 — — 
Residential— 8,407 — — 
Total$80,433 $8,886 $3,210 $15,644 

December 31, 2024
Type of Collateral
($ in thousands)Commercial Real EstateResidential Real EstateBlanket LienOther
Commercial and industrial$— $— $4,279 $3,495 
Real estate:
Commercial - investor owned14,136 — — — 
Commercial - owner occupied7,521 482 486 — 
Total$21,657 $482 $4,765 $3,495 

The aging of the recorded investment in past due loans by class and category is presented as of the dates indicated.

September 30, 2025
($ in thousands)30-89 Days
 Past Due		90 or More
Days
Past Due		Total
Past Due		CurrentTotal
Commercial and industrial$6,358 $23,975 $30,333 $4,918,428 $4,948,761 
Real estate:
Commercial - investor owned5,080 77,203 82,283 2,741,917 2,824,200 
Commercial - owner occupied5,561 28,104 33,665 2,314,446 2,348,111 
Construction and land development1,005 1,454 2,459 857,368 859,827 
Residential2,085 8,651 10,736 353,780 364,516 
Other17 33 50 238,831 238,881 
Loans, before unearned loan fees$20,106 $139,420 $159,526 $11,424,770 $11,584,296 
Unearned loan fees, net(1,187)
Total$11,583,109 
December 31, 2024
($ in thousands)30-89 Days
 Past Due		90 or More
Days
Past Due		Total
Past Due		CurrentTotal
Commercial and industrial$1,948 $12,228 $14,176 $4,706,252 $4,720,428 
Real estate:
Commercial - investor owned1,377 14,333 15,710 2,592,045 2,607,755 
Commercial - owner occupied10,542 18,591 29,133 2,330,823 2,359,956 
Construction and land development101 5,620 5,721 886,842 892,563 
Residential2,833 258 3,091 355,832 358,923 
Other34 9 43 281,150 281,193 
Loans, before unearned loan fees$16,835 $51,039 $67,874 $11,152,944 $11,220,818 
Unearned loan fees, net(463)
Total$11,220,355 

The allowance for credit losses on loans incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon origination or acquisition. The starting point for the estimate of the allowance for credit losses on loans is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. The Company uses a probability of default and loss given default model to determine the allowance for credit losses on loans.

An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification. The effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses on loans because of the measurement methodologies used to estimate the allowance.

The most common concession the Company provides to borrowers experiencing financial difficulty is a term extension. In limited circumstances, the Company may modify loans by providing principal forgiveness or an interest rate reduction. When principal forgiveness is provided, the amortized cost basis of the asset is written off against the allowance for credit losses on loans. The amount of the principal forgiveness is deemed to be uncollectible; therefore, that portion of the loan is written off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the allowance for credit losses on loans.

In some cases, the Company will modify a loan by providing multiple types of concessions. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as an interest rate reduction or principal forgiveness, may be granted.

The following tables show the recorded investment at the end of the dates listed for loans modified to borrowers experiencing financial difficulty, disaggregated by loan class and type of concession granted:
Term Extension
Three months endedNine months ended
($ in thousands)September 30, 2025Percent of Total Loan ClassSeptember 30, 2025Percent of Total Loan Class
Commercial and industrial$5,350 0.11 %$48,426 0.98 %
Real estate:
Commercial - investor owned244 0.01 %244 0.01 %
Commercial - owner occupied875 0.04 %5,888 0.25 %
Residential— — %23 0.01 %
Total$6,469 $54,581 
Term Extension
Three months ended
($ in thousands)September 30, 2024Percent of Total Loan Class
Commercial and industrial$9,996 0.22 %
Real estate:
Commercial - investor owned258 0.01 %
Total$10,254 

Term ExtensionPayment DelayTotal
Nine months endedNine months endedNine months ended
($ in thousands)September 30,
2024		Percent of Total Loan ClassSeptember 30, 2024Percent of Total Loan ClassSeptember 30, 2024Percent of Total Loan Class
Commercial and industrial$60,256 1.30 %$567 0.01 %$60,823 1.31 %
Real estate:
Commercial - investor owned8,667 0.34 %— — %8,667 0.34 %
Commercial - owner occupied94 NM— — %94 NM
Residential7,644 2.15 %— — %7,644 2.15 %
Total$76,661 $567 $77,228 

The following tables summarize the financial impacts of loan modifications made to borrowers experiencing financial difficulty and outstanding at the date indicated:
Three months endedNine months ended
Weighted Average Term Extension
(in months)		Weighted Average Term Extension
(in months)
($ in thousands)September 30, 2025September 30, 2025
Commercial and industrial46
Real estate:
Commercial - investor owned1212
Commercial - owner occupied315
Residential03

Three months endedNine months ended
Weighted Average Term Extension
(in months)		Weighted Average Term Extension
(in months)		Amount of Payment Delay
($ in thousands)September 30, 2024September 30, 2024
Commercial and industrial75$85 
Real estate:
Commercial - investor owned04—
Commercial - owner occupied123—
Residential012—
The following table shows the aging of the recorded investment in modified loans in the last 12 months by class at the date indicated:

September 30, 2025
($ in thousands)Current30-89 Days
 Past Due		90 or More
Days
Past Due		Total
Commercial and industrial$51,929 $— $— $51,929 
Real estate:
Commercial - investor owned244 — — 244 
Commercial - owner occupied17,420 — — 17,420 
Residential— 23 — 23 
Total$69,593 $23 $— $69,616 

September 30, 2024
($ in thousands)Current30-89 Days
 Past Due		90 or More
Days
Past Due		Total
Commercial and industrial$52,488 $— $— $52,488 
Real estate:
Commercial - investor owned259 — — 259 
Commercial - owner occupied— 92 — 92 
Residential70 70 — 140 
Total$52,817 $162 $— $52,979 

There were no loans that experienced a default during the three and nine months ended September 30, 2025, respectively, or the three months ended September 30, 2024 subsequent to being granted a modification in the preceding twelve months. The following table summarizes loans that experienced a default during the nine months ended September 30, 2024, subsequent to being granted a modification in the preceding twelve months. All of these loans were charged-off during the preceding period. Default is defined as movement to nonperforming status, foreclosure or charge-off.

Term Extension
Nine months ended
($ in thousands)September 30, 2024Percent of Total Loan Class
Commercial and industrial$1,000 0.02 %
Real estate:
Construction and land development1,748 0.20 %
Other4 NM
Total$2,752 

As of September 30, 2025, the Company allocated an immaterial amount in specific reserves to loans that have been restructured.
The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, payment experience, credit documentation, and current economic factors among other factors. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings:
•Grades 1, 2, and 3 – Includes loans to borrowers with a continuous record of strong earnings, sound balance sheet condition and capitalization, ample liquidity with solid cash flow, and whose management team has experience and depth within their industry.
•Grade 4 – Includes loans to borrowers with positive trends in profitability, satisfactory capitalization and balance sheet condition, and sufficient liquidity and cash flow.
•Grade 5 – Includes loans to borrowers that may display fluctuating trends in sales, profitability, capitalization, liquidity, and cash flow.
•Grade 6 – Includes loans to borrowers where an adverse change or perceived weakness has occurred, but may be correctable in the near future. Alternatively, this rating category may also include circumstances where the borrower is starting to reverse a negative trend or condition, or has recently been upgraded from a 7, 8, or 9 rating.
•Grade 7 – Special Mention credits are borrowers that have experienced financial setback of a nature that is not determined to be severe or influence ‘ongoing concern’ expectations. Although possible, no loss is anticipated, due to strong collateral and/or guarantor support.
•Grade 8 – Substandard credits include those borrowers characterized by significant losses and sustained downward trends in balance sheet condition, liquidity, and cash flow. Repayment reliance may have shifted to secondary sources. Collateral exposure may exist and additional reserves may be warranted.
•Grade 9 – Doubtful credits include borrowers that may show deteriorating trends that are unlikely to be corrected. Collateral values may appear insufficient for full recovery, therefore requiring a partial charge-off, or debt renegotiation with the borrower. The borrower may have declared bankruptcy or bankruptcy is likely in the near term. All doubtful rated credits will be on non-accrual.
The recorded investment by risk category of the loans by class and year of origination is presented in the following tables as of the dates indicated:
September 30, 2025
Term Loans by Origination Year
($ in thousands)20252024202320222021PriorRevolving Loans Converted to Term LoansRevolving LoansTotal
Commercial and industrial
Pass (1-6)$1,422,869 $953,287 $598,715 $360,379 $64,502 $70,024 $58,351 $1,052,872 $4,580,999 
Special Mention (7)54,569 11,640 27,542 4,207 4,192 474 11,837 45,895 160,356 
Classified (8-9)38,148 29,186 5,180 11,457 1,305 670 36,312 37,408 159,666 
Total Commercial and industrial$1,515,586 $994,113 $631,437 $376,043 $69,999 $71,168 $106,500 $1,136,175 $4,901,021 
Commercial real estate-investor owned
Pass (1-6)$540,435 $455,226 $366,506 $429,549 $318,971 $419,207 $34,624 $46,922 $2,611,440 
Special Mention (7)33,629 34,679 3,806 6,197 9,110 5,809 14,030 — 107,260 
Classified (8-9)2,088 — — 808 63,041 21,435 — — 87,372 
Total Commercial real estate-investor owned$576,152 $489,905 $370,312 $436,554 $391,122 $446,451 $48,654 $46,922 $2,806,072 
Commercial real estate-owner occupied
Pass (1-6)$336,672 $311,896 $301,266 $371,100 $361,559 $473,934 $1,069 $28,941 $2,186,437 
Special Mention (7)13,883 1,477 12,514 15,358 12,098 16,586 — — 71,916 
Classified (8-9)2,417 17,859 7,907 10,791 7,345 24,691 — 250 71,260 
Total Commercial real estate-owner occupied$352,972 $331,232 $321,687 $397,249 $381,002 $515,211 $1,069 $29,191 $2,329,613 
Construction real estate
Pass (1-6)$421,706 $304,372 $89,338 $9,953 $3,651 $1,457 $12,604 $2,992 $846,073 
Special Mention (7)10,607 — 26 43 — — — — 10,676 
Classified (8-9)— — 481 910 — 6 — — 1,397 
Total Construction real estate$432,313 $304,372 $89,845 $10,906 $3,651 $1,463 $12,604 $2,992 $858,146 
Residential real estate
Pass (1-6)$49,850 $24,849 $27,963 $30,391 $34,084 $84,419 $5,516 $76,334 $333,406 
Special Mention (7)3,084 1,355 122 305 87 870 — 941 6,764 
Classified (8-9)23 — 4,749 — 12,052 7,346 — 75 24,245 
Total residential real estate$52,957 $26,204 $32,834 $30,696 $46,223 $92,635 $5,516 $77,350 $364,415 
Other
Pass (1-6)$21,101 $28,559 $4,926 $30,842 $52,548 $47,469 $— $42,999 $228,444 
Special Mention (7)1,915 — — — — 693 — 3,417 6,025 
Classified (8-9)— — — — — 1,031 — — 1,031 
Total Other$23,016 $28,559 $4,926 $30,842 $52,548 $49,193 $— $46,416 $235,500 
Total loans classified by risk category$2,952,996 $2,174,385 $1,451,041 $1,282,290 $944,545 $1,176,121 $174,343 $1,339,046 $11,494,767 
Total loans classified by performing status88,342 
Total loans$11,583,109 
December 31, 2024
Term Loans by Origination Year
($ in thousands)20242023202120212020PriorRevolving Loans Converted to Term LoansRevolving LoansTotal
Commercial and industrial
Pass (1-6)$1,477,552 $958,327 $607,626 $172,201 $117,845 $69,236 $87,059 $942,991 $4,432,837 
Special Mention (7)32,479 40,804 4,982 2,373 796 64 14,783 55,100 151,381 
Classified (8-9)29,999 868 9,271 — 142 809 9,681 20,791 71,561 
Total Commercial and industrial$1,540,030 $999,999 $621,879 $174,574 $118,783 $70,109 $111,523 $1,018,882 $4,655,779 
Commercial real estate-investor owned
Pass (1-6)$587,403 $402,899 $479,131 $374,155 $266,044 $281,232 $4,566 $48,808 $2,444,238 
Special Mention (7)12,195 4,901 — 43,506 2,389 9,623 31,321 1,999 105,934 
Classified (8-9)256 — 821 20,274 13,564 4,702 — — 39,617 
Total Commercial real estate-investor owned$599,854 $407,800 $479,952 $437,935 $281,997 $295,557 $35,887 $50,807 $2,589,789 
Commercial real estate-owner occupied
Pass (1-6)$420,774 $329,001 $437,731 $408,210 $246,024 $352,095 $890 $29,239 $2,223,964 
Special Mention (7)6,914 10,764 5,323 12,324 8,426 18,389 — — 62,140 
Classified (8-9)13,794 3,727 4,063 6,452 3,765 22,319 — 250 54,370 
Total Commercial real estate-owner occupied$441,482 $343,492 $447,117 $426,986 $258,215 $392,803 $890 $29,489 $2,340,474 
Construction real estate
Pass (1-6)$404,286 $211,573 $198,278 $38,131 $6,110 $3,823 $9,513 $5,338 $877,052 
Special Mention (7)11,250 33 49 294 — 223 — — 11,849 
Classified (8-9)— — 1,573 — — 585 — — 2,158 
Total Construction real estate$415,536 $211,606 $199,900 $38,425 $6,110 $4,631 $9,513 $5,338 $891,059 
Residential real estate
Pass (1-6)$46,454 $37,371 $35,082 $27,784 $22,350 $78,113 $5,880 $79,284 $332,318 
Special Mention (7)1,539 26 239 — — 1,435 — 887 4,126 
Classified (8-9)— 2,979 107 11,976 5,538 1,572 — — 22,172 
Total residential real estate$47,993 $40,376 $35,428 $39,760 $27,888 $81,120 $5,880 $80,171 $358,616 
Other
Pass (1-6)$31,286 $6,058 $50,351 $55,844 $49,519 $31,061 $44 $40,578 $264,741 
Special Mention (7)— 2,326 — — — 1,780 — 7,660 11,766 
Classified (8-9)— — — — — 5 — — 5 
Total Other$31,286 $8,384 $50,351 $55,844 $49,519 $32,846 $44 $48,238 $276,512 
Total loans classified by risk category$3,076,181 $2,011,657 $1,834,627 $1,173,524 $742,512 $877,066 $163,737 $1,232,925 $11,112,229 
Total loans classified by performing status108,126 
Total loans$11,220,355 
In the tables above, loan originations in 2025 and 2024 with a classification of “special mention” or “classified” primarily represent renewals or modifications initially underwritten and originated in prior years.

The following tables summarize the risk category of the loans by loan type as of the dates indicated:

September 30, 2025
($ in thousands)Pass (1-6)Special Mention (7)Classified (8-9)Total
Commercial and industrial$4,580,999 $160,356 $159,666 $4,901,021 
Real estate:
Commercial - investor owned2,611,440 107,260 87,372 2,806,072 
Commercial - owner occupied2,186,437 71,916 71,260 2,329,613 
Construction and land development846,073 10,676 1,397 858,146 
Residential333,406 6,764 24,245 364,415 
Other228,444 6,025 1,031 235,500 
Total loans classified by risk category$10,786,799 $362,997 $344,971 $11,494,767 
Total loans classified by performing status88,342 
$11,583,109 

December 31, 2024
($ in thousands)Pass (1-6)Special Mention (7)Classified (8-9)Total
Commercial and industrial$4,432,837 $151,381 $71,561 $4,655,779 
Real estate:
Commercial - investor owned2,444,238 105,934 39,617 2,589,789 
Commercial - owner occupied2,223,964 62,140 54,370 2,340,474 
Construction and land development877,052 11,849 2,158 891,059 
Residential332,318 4,126 22,172 358,616 
Other264,741 11,766 5 276,512 
Total loans classified by risk category$10,575,150 $347,196 $189,883 $11,112,229 
Total loans classified by performing status108,126 
$11,220,355 

In the tables above, guaranteed loan balances are included with a classification of “pass” due to the nature of these loans.

For certain loans, the Company evaluates credit quality based on the aging status.
The following tables present the recorded investment on loans based on payment activity as of the dates indicated:

September 30, 2025
($ in thousands)PerformingNon PerformingTotal
Commercial and industrial$42,135 $405 $42,540 
Real estate:
Commercial - investor owned16,536 — 16,536 
Commercial - owner occupied26,428 — 26,428 
Residential595 — 595 
Other2,209 34 2,243 
Total$87,903 $439 $88,342 

December 31, 2024
($ in thousands)PerformingNon PerformingTotal
Commercial and industrial$60,899 $11 $60,910 
Real estate:
Commercial - investor owned17,175 — 17,175 
Commercial - owner occupied27,349 — 27,349 
Residential647 — 647 
Other2,036 9 2,045 
Total$108,106 $20 $108,126