XML 21 R11.htm IDEA: XBRL DOCUMENT
v3.25.3

LOANS AND ALLOWANCE FOR CREDIT LOSSES | 9 Months Ended
--- | ---
Sep. 30, 2025
Receivables [Abstract] |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | LOANS AND ALLOWANCE FOR CREDIT LOSSES Loans Held for Sale The following table presents loans held for sale:
(Dollars in thousands) |  | September 30, 2025 |  | December 31, 2024
1-4 family residential |  | $ | 8,214 |  |  | $ | 1,167 |
Commercial |  | 1,527 |  |  | 5 |
Total loans held for sale |  | $ | 9,741 |  |  | $ | 1,172 |
Loans Held for Investment Loans The following table presents the amortized cost and unpaid principal balance of loans held for investment:
|  | September 30, 2025 |  | December 31, 2024
(Dollars in thousands) |  | Amortized Cost |  | Unpaid Principal |  | Difference |  | Amortized Cost |  | Unpaid Principal |  | Difference
Commercial real estate |  | $ | 769,314 |  |  | $ | 769,589 |  |  | $ | (275) |  |  | $ | 777,689 |  |  | $ | 777,980 |  |  | $ | (291) |
Construction, land development, land |  | 204,247 |  |  | 204,483 |  |  | (236) |  |  | 203,804 |  |  | 204,268 |  |  | (464) |
1-4 family residential |  | 180,970 |  |  | 180,211 |  |  | 759 |  |  | 154,020 |  |  | 153,711 |  |  | 309 |
Farmland |  | 43,208 |  |  | 43,278 |  |  | (70) |  |  | 56,366 |  |  | 56,450 |  |  | (84) |
Commercial |  | 1,144,872 |  |  | 1,155,281 |  |  | (10,409) |  |  | 1,119,245 |  |  | 1,120,551 |  |  | (1,306) |
Factored receivables |  | 1,424,631 |  |  | 1,428,388 |  |  | (3,757) |  |  | 1,204,510 |  |  | 1,208,486 |  |  | (3,976) |
Consumer |  | 17,235 |  |  | 17,252 |  |  | (17) |  |  | 8,000 |  |  | 8,005 |  |  | (5) |
Mortgage warehouse |  | 1,202,445 |  |  | 1,202,445 |  |  | — |  |  | 1,023,326 |  |  | 1,023,326 |  |  | — |
Total loans held for investment |  | 4,986,922 |  |  | $ | 5,000,927 |  |  | $ | (14,005) |  |  | 4,546,960 |  |  | $ | 4,552,777 |  |  | $ | (5,817) |
Allowance for credit losses |  | (33,549) |  |  |  |  |  |  | (40,714) |  |  |  |  |
|  | $ | 4,953,373 |  |  |  |  |  |  | $ | 4,506,246 |  |  |  |  |
The difference between the amortized cost and the unpaid principal is due to (1) premiums and discounts associated with acquired loans totaling $10,581,000 and $2,689,000 at September 30, 2025 and December 31, 2024, respectively, and (2) net deferred origination and factoring fees totaling $3,424,000 and $3,128,000 at September 30, 2025 and December 31, 2024, respectively. Accrued interest on loans, which is excluded from the amortized cost of loans held for investment, totaled $42,827,000 and $36,838,000 at September 30, 2025 and December 31, 2024, respectively, and was included in other assets on the Company's consolidated balance sheets. During the three months ended June 30, 2025, the Company acquired a $23,411,000 nonperforming commercial loan for $3,284,000. The loan was purchased credit deteriorated ("PCD") and a $10,780,000 ACL was established on Day 1 resulting in a discount of $9,348,000. Prior to June 30, 2025, the Company determined that the entire $10,780,000 ACL was uncollectible and charged off the entire amount. Such charge-off had no impact on credit loss expense. As of September 30, 2025, most of the Company’s non-factoring business activity is with customers located within certain states. The states of Texas (19%), Colorado (11%), Illinois (11%), and Iowa (4%) make up 45% of the Company’s gross loans, excluding factored receivables. Therefore, the Company’s exposure to credit risk is affected by changes in the economies in these states. At December 31, 2024, the states of Texas (22%), Illinois (12%), Colorado (10%), and Iowa (4%) made up 48% of the Company’s gross loans, excluding factored receivables. A majority (96%) of the Company's factored receivables, representing approximately 28% of the Company's total loan portfolio as of September 30, 2025, are transportation receivables. At December 31, 2024, 97% of the Company's factored receivables, representing approximately 26% of the Company's total loan portfolio, were transportation receivables. At September 30, 2025 and December 31, 2024, the Company had $290,479,000 and $267,891,000, respectively, of customer reserves associated with factored receivables. These amounts represent customer reserves held to settle any payment disputes or collection shortfalls, may be used to pay customers’ obligations to various third parties as directed by the customer, are periodically released to or withdrawn by customers, and are reported as deposits in the consolidated balance sheets. As of December 31, 2024, the Company carried a separate receivable (the “Misdirected Payments Receivable”) payable by the United States Postal Service (“USPS”) arising from accounts factored to a large carrier. The balance of such Misdirected Payments Receivable, net of customer reserves, was $0 and $19,361,000 at September 30, 2025 and December 31, 2024, respectively and is reflected in factored receivables. Refer to Note 1 for further discussion. Loans with carrying amounts of $1,859,817,000 and $1,744,145,000 at September 30, 2025 and December 31, 2024, respectively, were pledged to secure Federal Home Loan Bank borrowing capacity and Federal Reserve Bank discount window borrowing capacity. Allowance for Credit Losses The Company’s estimate of the ACL reflects losses expected over the remaining contractual life of the assets. The contractual term does not consider extensions, renewals or modifications. The activity in the allowance for credit losses (“ACL”) related to loans held for investment is as follows:
(Dollars in thousands) |  | Beginning Balance |  | Credit Loss Expense |  | Charge-offs |  | Recoveries |  | Initial ACL on Loans Purchased with Credit Deterioration |  | Ending Balance
Three Months Ended September 30, 2025 |  |  |  |  |  |
Commercial real estate |  | $ | 4,198 |  |  | $ | 306 |  |  | $ | (36) |  |  | $ | 4 |  |  | $ | — |  |  | $ | 4,472 |
Construction, land development, land |  | 2,589 |  |  | (415) |  |  | — |  |  | 46 |  |  | — |  |  | 2,220 |
1-4 family residential |  | 1,560 |  |  | 243 |  |  | (58) |  |  | 23 |  |  | — |  |  | 1,768 |
Farmland |  | 302 |  |  | (7) |  |  | — |  |  | — |  |  | — |  |  | 295 |
Commercial |  | 17,813 |  |  | 1,724 |  |  | (5,424) |  |  | 18 |  |  | — |  |  | 14,131 |
Factored receivables |  | 10,553 |  |  | 2,310 |  |  | (4,014) |  |  | 183 |  |  | — |  |  | 9,032 |
Consumer |  | 466 |  |  | 114 |  |  | (158) |  |  | 25 |  |  | — |  |  | 447 |
Mortgage warehouse |  | 1,210 |  |  | (26) |  |  | — |  |  | — |  |  | — |  |  | 1,184 |
|  | $ | 38,691 |  |  | $ | 4,249 |  |  | $ | (9,690) |  |  | $ | 299 |  |  | $ | — |  |  | $ | 33,549 |
(Dollars in thousands) |  | Beginning Balance |  | Credit Loss Expense |  | Charge-offs |  | Recoveries |  | Initial ACL on Loans Purchased with Credit Deterioration |  | Ending Balance
Three Months Ended September 30, 2024 |  |  |  |  |  |
Commercial real estate |  | $ | 5,438 |  |  | $ | (206) |  |  | $ | (831) |  |  | $ | — |  |  | $ | — |  |  | $ | 4,401 |
Construction, land development, land |  | 2,596 |  |  | 333 |  |  | — |  |  | — |  |  | — |  |  | 2,929 |
1-4 family residential |  | 972 |  |  | 15 |  |  | (18) |  |  | 1 |  |  | — |  |  | 970 |
Farmland |  | 395 |  |  | (1) |  |  | — |  |  | — |  |  | — |  |  | 394 |
Commercial |  | 17,372 |  |  | 4,489 |  |  | (1,913) |  |  | 18 |  |  | — |  |  | 19,966 |
Factored receivables |  | 11,928 |  |  | 323 |  |  | (951) |  |  | 270 |  |  | — |  |  | 11,570 |
Consumer |  | 156 |  |  | 88 |  |  | (114) |  |  | 16 |  |  | — |  |  | 146 |
Mortgage warehouse |  | 734 |  |  | 133 |  |  | — |  |  | — |  |  | — |  |  | 867 |
|  | $ | 39,591 |  |  | $ | 5,174 |  |  | $ | (3,827) |  |  | $ | 305 |  |  | $ | — |  |  | $ | 41,243 |
(Dollars in thousands) |  | Beginning Balance |  | Credit Loss Expense |  | Charge-offs |  | Recoveries |  | Initial ACL on Loans Purchased with Credit Deterioration |  | Ending Balance
Nine Months Ended September 30, 2025 |  |  |  |  |  |
Commercial real estate |  | $ | 3,825 |  |  | $ | 733 |  |  | $ | (157) |  |  | $ | 71 |  |  | $ | — |  |  | $ | 4,472 |
Construction, land development, land |  | 2,873 |  |  | (450) |  |  | (250) |  |  | 47 |  |  | — |  |  | 2,220 |
1-4 family residential |  | 1,404 |  |  | 442 |  |  | (104) |  |  | 26 |  |  | — |  |  | 1,768 |
Farmland |  | 386 |  |  | (91) |  |  | — |  |  | — |  |  | — |  |  | 295 |
Commercial |  | 21,419 |  |  | 2,486 |  |  | (20,927) |  |  | 373 |  |  | 10,780 |  |  | 14,131 |
Factored receivables |  | 9,600 |  |  | 1,181 |  |  | (6,087) |  |  | 4,338 |  |  | — |  |  | 9,032 |
Consumer |  | 185 |  |  | 584 |  |  | (428) |  |  | 106 |  |  | — |  |  | 447 |
Mortgage warehouse |  | 1,022 |  |  | 162 |  |  | — |  |  | — |  |  | — |  |  | 1,184 |
|  | $ | 40,714 |  |  | $ | 5,047 |  |  | $ | (27,953) |  |  | $ | 4,961 |  |  | $ | 10,780 |  |  | $ | 33,549 |
(Dollars in thousands) |  | Beginning Balance |  | Credit Loss Expense |  | Charge-offs |  | Recoveries |  | Initial ACL on Loans Purchased with Credit Deterioration |  | Ending Balance
Nine Months Ended September 30, 2024 |  |  |  |  |  |
Commercial real estate |  | $ | 6,030 |  |  | $ | (798) |  |  | $ | (831) |  |  | $ | — |  |  | $ | — |  |  | $ | 4,401 |
Construction, land development, land |  | 965 |  |  | 1,963 |  |  | — |  |  | 1 |  |  | — |  |  | 2,929 |
1-4 family residential |  | 927 |  |  | 71 |  |  | (32) |  |  | 4 |  |  | — |  |  | 970 |
Farmland |  | 442 |  |  | (48) |  |  | — |  |  | — |  |  | — |  |  | 394 |
Commercial |  | 14,060 |  |  | 9,558 |  |  | (3,734) |  |  | 82 |  |  | — |  |  | 19,966 |
Factored receivables |  | 11,896 |  |  | 3,045 |  |  | (4,283) |  |  | 912 |  |  | — |  |  | 11,570 |
Consumer |  | 171 |  |  | 221 |  |  | (308) |  |  | 62 |  |  | — |  |  | 146 |
Mortgage warehouse |  | 728 |  |  | 139 |  |  | — |  |  | — |  |  | — |  |  | 867 |
|  | $ | 35,219 |  |  | $ | 14,151 |  |  | $ | (9,188) |  |  | $ | 1,061 |  |  | $ | — |  |  | $ | 41,243 |
The decrease in required ACL during the three months ended September 30, 2025 is a function of net charge-offs of $9,391,000 and credit loss expense of $4,249,000. The decrease in required ACL during the nine months ended September 30, 2025 is a function of net charge-offs of $22,992,000 and credit loss expense of $5,047,000. Included in charge-offs for the nine months ended September 30, 2025 was the $10,780,000 day-one purchased credit deteriorated ACL that was deemed uncollectible and charged off with no impact to credit loss expense. The Company uses the discounted cash flow (DCF) method to estimate ACL for the commercial real estate, construction, land development, land, 1-4 family residential, commercial (excluding liquid credit), and consumer loan pools. For all loan pools utilizing the DCF method, the Company utilizes and forecasts national unemployment as a loss driver. The Company also utilizes and forecasts either one-year percentage change in national retail sales (commercial real estate – non multifamily, commercial general, commercial agriculture, commercial asset-based lending, commercial equipment finance, consumer), one-year percentage change in the national home price index (1-4 family residential and construction, land development, land), or one-year percentage change in national gross domestic product (commercial real estate – multifamily) as a second loss driver depending on the nature of the underlying loan pool and how well that loss driver correlates to expected future losses. Consistent forecasts of the loss drivers are used across the loan segments. The Company also forecasts prepayments speeds for use in the DCF models with higher prepayment speeds resulting in lower required ACL levels and vice versa for shorter prepayment speeds. These assumed prepayment speeds are based upon our historical prepayment speeds by loan type adjusted for the expected impact of the future interest rate environment. The impact of these assumed prepayment speeds is lesser in magnitude than the aforementioned loss driver assumptions. For all DCF models at September 30, 2025, the Company has determined that four quarters represents a reasonable and supportable forecast period and reverts back to a historical loss rate over eight quarters on a straight-line basis. The Company leverages economic projections from a reputable and independent third party to inform its loss driver forecasts over the four-quarter forecast period. Other internal and external indicators of economic forecasts are also considered by the Company when developing the forecast metrics. At September 30, 2025 as compared to December 31, 2024, the Company forecasted a modest increase in national unemployment and modest degradation in one-year percentage change in national retail sales, one-year percentage change in national home price index, and one-year percentage change in national gross domestic product. At September 30, 2025 for national unemployment, the Company projected a low percentage in the first quarter followed by a gradual rise in the following three quarters. For percentage change in national retail sales, the Company projected small increases in the first two projected quarters followed by a decline to negative levels over the last two projected quarters to a level below recent actual periods. For percentage change in national home price index, the Company projected a breakeven level in the first projected quarter followed by a steep drop to negative levels for the remaining three quarters with such negative levels peaking in the fourth projected quarter. For percentage change in national gross domestic product, management projected very low growth for the first two projected quarters with low levels of contraction for the final two projected quarters. At September 30, 2025, the Company used its historical prepayment speeds with minimal adjustment. The Company uses a loss-rate method to estimate expected credit losses for the farmland, liquid credit, factored receivable, and mortgage warehouse loan pools. For each of these loan segments, the Company applies an expected loss ratio based on internal and peer historical losses adjusted as appropriate for qualitative factors. Qualitative loss factors are based on the Company's judgment of company, market, industry or business specific data, changes in underlying loan composition of specific portfolios, trends relating to credit quality, delinquency, non-performing and adversely rated loans, and reasonable and supportable forecasts of economic conditions. Loss factors used to calculate the required ACL on pools that use the loss-rate method reflect the forecasted economic conditions described above. For the three months ended September 30, 2025, changes in projected loss drivers and prepayment assumptions over the reasonable and supportable forecast period increased the required ACL by $156,000. Changes in loan volume and mix increased the required ACL by $243,000. Changes in required specific reserves decreased the ACL by $5,542,000. Net charge-offs during the period were $9,391,000. For the three months ended September 30, 2024, changes in projected loss drivers and prepayment assumptions over the reasonable and supportable forecast period increased the required ACL by $531,000. Changes in loan volume and mix decreased the required ACL by $1,068,000. Changes in required specific reserves increased the ACL by $2,189,000. Net charge-offs during the period were $3,522,000. For the nine months ended September 30, 2025, changes in projected loss drivers and prepayment assumptions over the reasonable and supportable forecast period increased the required ACL by $442,000. Changes in loan volume and mix increased the required ACL by $2,029,000. Decreases in required specific reserves decreased the required ACL by $9,637,000. Net charge-offs during the period were $22,992,000. For the nine months ended September 30, 2024, changes in projected loss drivers and prepayment assumptions over the reasonable and supportable forecast period increased the required ACL by $2,539,000. Changes on loan volume and mix had an insignificant impact on the ACL. Increases in required specific reserves increased the required ACL by $3,543,000. Net charge-offs during the period were $8,127,000. The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans:
(Dollars in thousands) |  | Real Estate |  | Accounts Receivable |  | Equipment |  | Other |  | Total |  | ACL Allocation
September 30, 2025 |  |  |  |  |  |
Commercial real estate |  | $ | 25,236 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 25,236 |  |  | $ | — |
Construction, land development, land |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
1-4 family residential |  | 1,038 |  |  | — |  |  | — |  |  | — |  |  | 1,038 |  |  | — |
Farmland |  | 1,418 |  |  | — |  |  | 59 |  |  | 166 |  |  | 1,643 |  |  | — |
Commercial |  | 281 |  |  | — |  |  | 44,664 |  |  | 11,499 |  |  | 56,444 |  |  | 1,338 |
Factored receivables |  | — |  |  | 4,447 |  |  | — |  |  | — |  |  | 4,447 |  |  | 1,788 |
Consumer |  | — |  |  | — |  |  | — |  |  | 18 |  |  | 18 |  |  | — |
Mortgage warehouse |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | $ | 27,973 |  |  | $ | 4,447 |  |  | $ | 44,723 |  |  | $ | 11,683 |  |  | $ | 88,826 |  |  | $ | 3,126 |
Commercial loans secured by Other collateral primarily consist of large liquid credit loans secured by the underlying enterprise values of the borrowers.
(Dollars in thousands) |  | Real Estate |  | Accounts Receivable |  | Equipment |  | Other |  | Total |  | ACL Allocation
December 31, 2024 |  |  |  |  |  |
Commercial real estate |  | $ | 30,042 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,211 |  |  | $ | 34,253 |  |  | $ | 28 |
Construction, land development, land |  | 2,410 |  |  | — |  |  | — |  |  | — |  |  | 2,410 |  |  | — |
1-4 family residential |  | 810 |  |  | — |  |  | — |  |  | — |  |  | 810 |  |  | 47 |
Farmland |  | 1,870 |  |  | — |  |  | 73 |  |  | 53 |  |  | 1,996 |  |  | — |
Commercial |  | 2,196 |  |  | — |  |  | 52,364 |  |  | 18,819 |  |  | 73,379 |  |  | 9,294 |
Factored receivables |  | — |  |  | 32,773 |  |  | — |  |  | — |  |  | 32,773 |  |  | 3,993 |
Consumer |  | — |  |  | — |  |  | — |  |  | 116 |  |  | 116 |  |  | — |
Mortgage warehouse |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | $ | 37,328 |  |  | $ | 32,773 |  |  | $ | 52,437 |  |  | $ | 23,199 |  |  | $ | 145,737 |  |  | $ | 13,362 |
Past Due and Nonaccrual Loans The following tables present an aging of contractually past due loans:
(Dollars in thousands) |  | Past Due 30-59 Days |  | Past Due 60-90 Days |  | Past Due 90 Days or More |  | Total Past Due |  | Current |  | Total |  | Past Due 90 Days or More and Accruing
September 30, 2025 |  |  |  |  |  |  |
Commercial real estate |  | $ | 51 |  |  | $ | 140 |  |  | $ | 6,885 |  |  | $ | 7,076 |  |  | $ | 762,238 |  |  | $ | 769,314 |  |  | $ | — |
Construction, land development, land |  | — |  |  | — |  |  | — |  |  | — |  |  | 204,247 |  |  | 204,247 |  |  | — |
1-4 family residential |  | 532 |  |  | 362 |  |  | 280 |  |  | 1,174 |  |  | 179,796 |  |  | 180,970 |  |  | — |
Farmland |  | — |  |  | 234 |  |  | 458 |  |  | 692 |  |  | 42,516 |  |  | 43,208 |  |  | — |
Commercial |  | 27,361 |  |  | 14,994 |  |  | 18,385 |  |  | 60,740 |  |  | 1,084,132 |  |  | 1,144,872 |  |  | — |
Factored receivables |  | 20,566 |  |  | 3,781 |  |  | 1,300 |  |  | 25,647 |  |  | 1,398,984 |  |  | 1,424,631 |  |  | 1,300 |
Consumer |  | 17 |  |  | 37 |  |  | — |  |  | 54 |  |  | 17,181 |  |  | 17,235 |  |  | — |
Mortgage warehouse |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,202,445 |  |  | 1,202,445 |  |  | — |
Total |  | $ | 48,527 |  |  | $ | 19,548 |  |  | $ | 27,308 |  |  | $ | 95,383 |  |  | $ | 4,891,539 |  |  | $ | 4,986,922 |  |  | $ | 1,300 |
(Dollars in thousands) |  | Past Due 30-59 Days |  | Past Due 60-90 Days |  | Past Due 90 Days or More |  | Total Past Due |  | Current |  | Total |  | Past Due 90 Days or More and Accruing
December 31, 2024 |  |  |  |  |  |  |
Commercial real estate |  | $ | 840 |  |  | $ | 3,404 |  |  | $ | 10,363 |  |  | $ | 14,607 |  |  | $ | 763,082 |  |  | $ | 777,689 |  |  | $ | — |
Construction, land development, land |  | — |  |  | 2,410 |  |  | — |  |  | 2,410 |  |  | 201,394 |  |  | 203,804 |  |  | — |
1-4 family residential |  | 1,188 |  |  | 631 |  |  | 229 |  |  | 2,048 |  |  | 151,972 |  |  | 154,020 |  |  | — |
Farmland |  | 601 |  |  | 140 |  |  | 150 |  |  | 891 |  |  | 55,475 |  |  | 56,366 |  |  | — |
Commercial |  | 7,525 |  |  | 16,150 |  |  | 51,437 |  |  | 75,112 |  |  | 1,044,133 |  |  | 1,119,245 |  |  | — |
Factored receivables |  | 24,828 |  |  | 4,193 |  |  | 24,718 |  |  | 53,739 |  |  | 1,150,771 |  |  | 1,204,510 |  |  | 24,718 |
Consumer |  | 33 |  |  | 11 |  |  | — |  |  | 44 |  |  | 7,956 |  |  | 8,000 |  |  | — |
Mortgage warehouse |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,023,326 |  |  | 1,023,326 |  |  | — |
Total |  | $ | 35,015 |  |  | $ | 26,939 |  |  | $ | 86,897 |  |  | $ | 148,851 |  |  | $ | 4,398,109 |  |  | $ | 4,546,960 |  |  | $ | 24,718 |
At December 31, 2024, the Misdirected Payments Receivable, net of customer reserves, totaled $19,361,000, all of which was considered past due 90 days or more. Given the nature of factored receivables, these assets are disclosed as past due 90 days or more still accruing; however, the Company is not recognizing income on the assets. Historically, any income recognized on factored receivables that are past due 90 days or more has not been material. The following table presents the amortized cost basis of loans on nonaccrual status and the amortized cost basis of loans on nonaccrual status for which there was no related allowance for credit losses:
|  | September 30, 2025 |  | December 31, 2024
(Dollars in thousands) |  | Total Nonaccrual |  | Nonaccrual With No ACL |  | Total Nonaccrual |  | Nonaccrual With No ACL
Commercial real estate |  | $ | 8,382 |  |  | $ | 8,382 |  |  | $ | 11,254 |  |  | $ | 10,481 |
Construction, land development, land |  | — |  |  | — |  |  | 2,410 |  |  | 2,410 |
1-4 family residential |  | 1,011 |  |  | 1,011 |  |  | 810 |  |  | 763 |
Farmland |  | 732 |  |  | 732 |  |  | 1,996 |  |  | 1,996 |
Commercial |  | 56,454 |  |  | 48,241 |  |  | 73,437 |  |  | 45,405 |
Factored receivables |  | — |  |  | — |  |  | — |  |  | — |
Consumer |  | 18 |  |  | 18 |  |  | 116 |  |  | 116 |
Mortgage warehouse |  | — |  |  | — |  |  | — |  |  | — |
|  | $ | 66,597 |  |  | $ | 58,384 |  |  | $ | 90,023 |  |  | $ | 61,171 |
The following table presents accrued interest on nonaccrual loans reversed through interest income:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(Dollars in thousands) |  | 2025 |  | 2024 |  | 2025 |  | 2024
Commercial real estate |  | $ | — |  |  | $ | — |  |  | $ | 76 |  |  | $ | — |
Construction, land development, land |  | — |  |  | — |  |  | — |  |  | 2 |
1-4 family residential |  | — |  |  | 4 |  |  | 2 |  |  | 5 |
Farmland |  | 11 |  |  | — |  |  | 11 |  |  | 13 |
Commercial |  | 14 |  |  | 6 |  |  | 17 |  |  | 194 |
Factored receivables |  | — |  |  | — |  |  | — |  |  | — |
Consumer |  | — |  |  | — |  |  | — |  |  | — |
Mortgage warehouse |  | — |  |  | — |  |  | — |  |  | — |
|  | $ | 25 |  |  | $ | 10 |  |  | $ | 106 |  |  | $ | 214 |
There was no interest earned on nonaccrual loans during the three and nine months ended September 30, 2025 and 2024. The following table presents information regarding nonperforming loans:
(Dollars in thousands) |  | September 30, 2025 |  | December 31, 2024
Nonaccrual loans |  | $ | 66,597 |  |  | $ | 90,023 |
Nonperforming factored receivables |  | 1,140 |  |  | 23,289 |
|  | $ | 67,737 |  |  | $ | 113,312 |
Credit Quality Information The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, including: current collateral and financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk on a regular basis. Large groups of smaller balance homogeneous loans, such as consumer loans, are analyzed primarily based on payment status. The Company uses the following definitions for risk ratings: Pass – Pass rated loans have low to average risk and are not otherwise classified. Classified – Classified loans are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the repayment of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Certain classified loans have the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal of loan constitutes a current period origination. As of September 30, 2025 and December 31, 2024, based on the most recent analysis performed, the risk category of loans is as follows:
|  | Revolving Loans |  | Revolving Loans Converted To Term Loans |  | Total
(Dollars in thousands) |  | Year of Origination |  |  |
September 30, 2025 |  | 2025 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | Prior |  |  |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 149,741 |  |  | $ | 197,152 |  |  | $ | 77,733 |  |  | $ | 38,585 |  |  | $ | 69,638 |  |  | $ | 102,365 |  |  | $ | 20,596 |  |  | $ | 850 |  |  | $ | 656,660 |
Classified |  | — |  |  | — |  |  | 84,063 |  |  | 2,717 |  |  | 1,344 |  |  | 23,834 |  |  | 696 |  |  | — |  |  | 112,654 |
Total commercial real estate |  | $ | 149,741 |  |  | $ | 197,152 |  |  | $ | 161,796 |  |  | $ | 41,302 |  |  | $ | 70,982 |  |  | $ | 126,199 |  |  | $ | 21,292 |  |  | $ | 850 |  |  | $ | 769,314 |
YTD gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | 116 |  |  | $ | — |  |  | $ | — |  |  | $ | 41 |  |  | $ | — |  |  | $ | — |  |  | $ | 157 |
Construction, land development, land |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 5,265 |  |  | $ | 98,230 |  |  | $ | 98,743 |  |  | $ | 854 |  |  | $ | 787 |  |  | $ | 368 |  |  | $ | — |  |  | $ | — |  |  | $ | 204,247 |
Classified |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total construction, land development, land |  | $ | 5,265 |  |  | $ | 98,230 |  |  | $ | 98,743 |  |  | $ | 854 |  |  | $ | 787 |  |  | $ | 368 |  |  | $ | — |  |  | $ | — |  |  | $ | 204,247 |
YTD gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 250 |  |  | $ | — |  |  | $ | — |  |  | $ | 250 |
1-4 family residential |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 38,798 |  |  | $ | 42,878 |  |  | $ | 17,358 |  |  | $ | 11,863 |  |  | $ | 14,262 |  |  | $ | 20,124 |  |  | $ | 30,437 |  |  | $ | 1,774 |  |  | $ | 177,494 |
Classified |  | — |  |  | — |  |  | 904 |  |  | 82 |  |  | 1,121 |  |  | 1,317 |  |  | 52 |  |  | — |  |  | 3,476 |
Total 1-4 family residential |  | $ | 38,798 |  |  | $ | 42,878 |  |  | $ | 18,262 |  |  | $ | 11,945 |  |  | $ | 15,383 |  |  | $ | 21,441 |  |  | $ | 30,489 |  |  | $ | 1,774 |  |  | $ | 180,970 |
YTD gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 104 |  |  | $ | — |  |  | $ | — |  |  | $ | 104 |
Farmland |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 4,866 |  |  | $ | 9,889 |  |  | $ | 4,092 |  |  | $ | 4,193 |  |  | $ | 3,809 |  |  | $ | 13,557 |  |  | $ | 1,307 |  |  | $ | 379 |  |  | $ | 42,092 |
Classified |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,116 |  |  | — |  |  | — |  |  | 1,116 |
Total farmland |  | $ | 4,866 |  |  | $ | 9,889 |  |  | $ | 4,092 |  |  | $ | 4,193 |  |  | $ | 3,809 |  |  | $ | 14,673 |  |  | $ | 1,307 |  |  | $ | 379 |  |  | $ | 43,208 |
YTD gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 266,398 |  |  | $ | 244,635 |  |  | $ | 94,180 |  |  | $ | 40,682 |  |  | $ | 10,495 |  |  | $ | 15,399 |  |  | $ | 413,271 |  |  | $ | 1,381 |  |  | $ | 1,086,441 |
Classified |  | 2,071 |  |  | 5,164 |  |  | 15,012 |  |  | 9,553 |  |  | 1,173 |  |  | 1,263 |  |  | 24,195 |  |  | — |  |  | 58,431 |
Total commercial |  | $ | 268,469 |  |  | $ | 249,799 |  |  | $ | 109,192 |  |  | $ | 50,235 |  |  | $ | 11,668 |  |  | $ | 16,662 |  |  | $ | 437,466 |  |  | $ | 1,381 |  |  | $ | 1,144,872 |
YTD gross charge-offs |  | $ | — |  |  | $ | 3,865 |  |  | $ | 4,834 |  |  | $ | 1,177 |  |  | $ | 271 |  |  | $ | 10,780 |  |  | $ | — |  |  | $ | — |  |  | $ | 20,927 |
Factored receivables |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 1,420,195 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 160 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,420,355 |
Classified |  | 4,276 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 4,276 |
Total factored receivables |  | $ | 1,424,471 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 160 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,424,631 |
YTD gross charge-offs |  | $ | 4,679 |  |  | $ | 1,408 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 6,087 |
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 9,148 |  |  | $ | 1,469 |  |  | $ | 962 |  |  | $ | 288 |  |  | $ | 218 |  |  | $ | 481 |  |  | $ | 4,651 |  |  | $ | — |  |  | $ | 17,217 |
Classified |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 18 |  |  | — |  |  | — |  |  | 18 |
Total consumer |  | $ | 9,148 |  |  | $ | 1,469 |  |  | $ | 962 |  |  | $ | 288 |  |  | $ | 218 |  |  | $ | 499 |  |  | $ | 4,651 |  |  | $ | — |  |  | $ | 17,235 |
YTD gross charge-offs |  | $ | 356 |  |  | $ | 58 |  |  | $ | 7 |  |  | $ | 5 |  |  | $ | — |  |  | $ | 2 |  |  | $ | — |  |  | $ | — |  |  | $ | 428 |
Mortgage warehouse |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 1,202,445 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,202,445 |
Classified |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total mortgage warehouse |  | $ | 1,202,445 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,202,445 |
YTD gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Total loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 3,096,856 |  |  | $ | 594,253 |  |  | $ | 293,068 |  |  | $ | 96,465 |  |  | $ | 99,209 |  |  | $ | 152,454 |  |  | $ | 470,262 |  |  | $ | 4,384 |  |  | $ | 4,806,951 |
Classified |  | 6,347 |  |  | 5,164 |  |  | 99,979 |  |  | 12,352 |  |  | 3,638 |  |  | 27,548 |  |  | 24,943 |  |  | — |  |  | 179,971 |
Total loans |  | $ | 3,103,203 |  |  | $ | 599,417 |  |  | $ | 393,047 |  |  | $ | 108,817 |  |  | $ | 102,847 |  |  | $ | 180,002 |  |  | $ | 495,205 |  |  | $ | 4,384 |  |  | $ | 4,986,922 |
YTD gross charge-offs |  | $ | 5,035 |  |  | $ | 5,331 |  |  | $ | 4,957 |  |  | $ | 1,182 |  |  | $ | 271 |  |  | $ | 11,177 |  |  | $ | — |  |  | $ | — |  |  | $ | 27,953 |
|  | Revolving Loans |  | Revolving Loans Converted To Term Loans |  | Total
(Dollars in thousands) |  | Year of Origination |  |  |
December 31, 2024 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior |  |  |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 212,265 |  |  | $ | 77,836 |  |  | $ | 48,149 |  |  | $ | 79,860 |  |  | $ | 90,460 |  |  | $ | 28,579 |  |  | $ | 87,634 |  |  | $ | 125 |  |  | $ | 624,908 |
Classified |  | 6,283 |  |  | 116,794 |  |  | — |  |  | 9,591 |  |  | 659 |  |  | 19,454 |  |  | — |  |  | — |  |  | 152,781 |
Total commercial real estate |  | $ | 218,548 |  |  | $ | 194,630 |  |  | $ | 48,149 |  |  | $ | 89,451 |  |  | $ | 91,119 |  |  | $ | 48,033 |  |  | $ | 87,634 |  |  | $ | 125 |  |  | $ | 777,689 |
YTD gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | 352 |  |  | $ | 425 |  |  | $ | 54 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 831 |
Construction, land development, land |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 126,504 |  |  | $ | 67,977 |  |  | $ | 850 |  |  | $ | 950 |  |  | $ | 257 |  |  | $ | 178 |  |  | $ | 4,678 |  |  | $ | — |  |  | $ | 201,394 |
Classified |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2,410 |  |  | — |  |  | — |  |  | 2,410 |
Total construction, land development, land |  | $ | 126,504 |  |  | $ | 67,977 |  |  | $ | 850 |  |  | $ | 950 |  |  | $ | 257 |  |  | $ | 2,588 |  |  | $ | 4,678 |  |  | $ | — |  |  | $ | 203,804 |
YTD gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
1-4 family residential |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 45,087 |  |  | $ | 19,836 |  |  | $ | 13,458 |  |  | $ | 17,192 |  |  | $ | 6,326 |  |  | $ | 18,287 |  |  | $ | 32,144 |  |  | $ | 302 |  |  | $ | 152,632 |
Classified |  | 113 |  |  | 626 |  |  | 100 |  |  | 204 |  |  | — |  |  | 254 |  |  | 91 |  |  | — |  |  | 1,388 |
Total 1-4 family residential |  | $ | 45,200 |  |  | $ | 20,462 |  |  | $ | 13,558 |  |  | $ | 17,396 |  |  | $ | 6,326 |  |  | $ | 18,541 |  |  | $ | 32,235 |  |  | $ | 302 |  |  | $ | 154,020 |
YTD gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 72 |  |  | $ | — |  |  | $ | — |  |  | $ | 72 |
Farmland |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 14,914 |  |  | $ | 6,077 |  |  | $ | 8,726 |  |  | $ | 4,334 |  |  | $ | 6,472 |  |  | $ | 12,866 |  |  | $ | 898 |  |  | $ | 73 |  |  | $ | 54,360 |
Classified |  | 68 |  |  | 53 |  |  | 1,503 |  |  | — |  |  | 11 |  |  | 371 |  |  | — |  |  | — |  |  | 2,006 |
Total farmland |  | $ | 14,982 |  |  | $ | 6,130 |  |  | $ | 10,229 |  |  | $ | 4,334 |  |  | $ | 6,483 |  |  | $ | 13,237 |  |  | $ | 898 |  |  | $ | 73 |  |  | $ | 56,366 |
YTD gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 325,712 |  |  | $ | 125,419 |  |  | $ | 81,599 |  |  | $ | 28,177 |  |  | $ | 8,249 |  |  | $ | 8,686 |  |  | $ | 442,362 |  |  | $ | 221 |  |  | $ | 1,020,425 |
Classified |  | 6,659 |  |  | 56,378 |  |  | 12,365 |  |  | 6,275 |  |  | 6,680 |  |  | 3 |  |  | 10,460 |  |  | — |  |  | 98,820 |
Total commercial |  | $ | 332,371 |  |  | $ | 181,797 |  |  | $ | 93,964 |  |  | $ | 34,452 |  |  | $ | 14,929 |  |  | $ | 8,689 |  |  | $ | 452,822 |  |  | $ | 221 |  |  | $ | 1,119,245 |
YTD gross charge-offs |  | $ | 934 |  |  | $ | 1,540 |  |  | $ | 2,209 |  |  | $ | 452 |  |  | $ | 579 |  |  | $ | 153 |  |  | $ | 351 |  |  | $ | — |  |  | $ | 6,218 |
Factored receivables |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 1,170,308 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,429 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,171,737 |
Classified |  | 13,412 |  |  | — |  |  | — |  |  | — |  |  | 19,361 |  |  | — |  |  | — |  |  | — |  |  | 32,773 |
Total factored receivables |  | $ | 1,183,720 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 20,790 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,204,510 |
YTD gross charge-offs |  | $ | 5,628 |  |  | $ | 1,558 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 7,186 |
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 4,242 |  |  | $ | 1,710 |  |  | $ | 587 |  |  | $ | 312 |  |  | $ | 203 |  |  | $ | 720 |  |  | $ | 110 |  |  | $ | — |  |  | $ | 7,884 |
Classified |  | 16 |  |  | — |  |  | 3 |  |  | 63 |  |  | — |  |  | 34 |  |  | — |  |  | — |  |  | 116 |
Total consumer |  | $ | 4,258 |  |  | $ | 1,710 |  |  | $ | 590 |  |  | $ | 375 |  |  | $ | 203 |  |  | $ | 754 |  |  | $ | 110 |  |  | $ | — |  |  | $ | 8,000 |
YTD gross charge-offs |  | $ | — |  |  | $ | 457 |  |  | $ | 20 |  |  | $ | 5 |  |  | $ | — |  |  | $ | 1 |  |  | $ | — |  |  | $ | — |  |  | $ | 483 |
Mortgage warehouse |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 1,023,326 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,023,326 |
Classified |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total mortgage warehouse |  | $ | 1,023,326 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,023,326 |
YTD gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Total loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 2,922,358 |  |  | $ | 298,855 |  |  | $ | 153,369 |  |  | $ | 130,825 |  |  | $ | 113,396 |  |  | $ | 69,316 |  |  | $ | 567,826 |  |  | $ | 721 |  |  | $ | 4,256,666 |
Classified |  | 26,551 |  |  | 173,851 |  |  | 13,971 |  |  | 16,133 |  |  | 26,711 |  |  | 22,526 |  |  | 10,551 |  |  | — |  |  | 290,294 |
Total loans |  | $ | 2,948,909 |  |  | $ | 472,706 |  |  | $ | 167,340 |  |  | $ | 146,958 |  |  | $ | 140,107 |  |  | $ | 91,842 |  |  | $ | 578,377 |  |  | $ | 721 |  |  | $ | 4,546,960 |
YTD gross charge-offs |  | $ | 6,562 |  |  | $ | 3,555 |  |  | $ | 2,581 |  |  | $ | 882 |  |  | $ | 633 |  |  | $ | 226 |  |  | $ | 351 |  |  | $ | — |  |  | $ | 14,790 |
Loan Modifications to Borrowers Experiencing Financial Difficulty In an effort to mitigate potential losses on loans, the Company will endeavor to work with borrowers experiencing financial difficulty to modify the terms of such loans to improve the likelihood of principal repayment. Such modifications generally fall into four broad categories; principal forgiveness, interest rate reduction, other-than-insignificant payment delay, or a term extension. Modifications can reflect one or multiple modification categories. For all loan types, including commercial real estate loans, the Company considers the likelihood of repayment by the borrower experiencing financial difficulty under the potential agreed upon modified terms. If such repayment is not deemed likely, the Company will not grant the troubled borrower a modification and will commence ultimate collection proceedings. On an ongoing basis, the Company monitors the performance of modified loans related to their restructured terms. The following tables present the amortized cost basis of loan modifications to borrowers experiencing financial difficulty made during the reporting period:
|  | Term Extension
|  |  |  |  |  | Financial Effect
(Dollars in thousands) |  | Amortized Cost |  | % of Portfolio |  | Term Extended By
Three Months Ended September 30, 2025 |  |  |  |  |  |
Commercial |  | $ | 3,550 |  |  | 0.3 | % |  | 0.3 years
|  | $ | 3,550 |  |  | 0.1 | % |  |
Three Months Ended September 30, 2024 |  |  |  |  |  |
Commercial real estate |  | $ | 194 |  |  | — | % |  | 0.3 years
Commercial |  | 17 |  |  | — | % |  | 1.0 years
|  | $ | 211 |  |  | — | % |  |
Nine Months Ended September 30, 2025 |  |  |  |  |  |
Commercial real estate |  | $ | 99,551 |  |  | 12.9 | % |  | 0.6 years
1-4 family residential |  | 12 |  |  | — | % |  | 5.4 years
Commercial |  | 5,490 |  |  | 0.5 | % |  | 0.7 years
|  | $ | 105,053 |  |  | 2.1 | % |  |
Nine Months Ended September 30, 2024 |  |  |  |  |  |
Commercial real estate |  | $ | 194 |  |  | — | % |  | 0.8 years
Commercial |  | 17 |  |  | — | % |  | 1.0 years
Consumer |  | 18 |  |  | 0.3 | % |  | 6.1 years
|  | $ | 229 |  |  | — | % |  |
|  | Term Extension and Payment Delay
|  |  |  | Financial Effect
(Dollars in thousands) |  | Amortized Cost |  | % of Portfolio |  | Term Extended By |  | Payments Delayed By
Three Months Ended September 30, 2025 |  |  |  |  |  |  |  |
Commercial real estate |  | 16,091 |  |  | 2.1 | % |  | 0.2 years |  | 0.2 years
|  | $ | 16,091 |  |  | 0.3 | % |  |  |  |
Three Months Ended September 30, 2024 |  |  |  |  |  |  |  |
Commercial |  | 513 |  |  | — | % |  | 0.7 years |  | 0.7 years
|  | $ | 513 |  |  | — | % |  |  |  |
Nine Months Ended September 30, 2025 |  |  |  |  |  |  |  |
Commercial real estate |  | $ | 16,091 |  |  | 2.1 | % |  | 0.6 years |  | 0.6 years
|  | $ | 16,091 |  |  | 0.3 | % |  |  |  |
Nine Months Ended September 30, 2024 |  |  |  |  |  |  |  |
Commercial |  | 513 |  |  | — | % |  | 0.7 years |  | 0.7 years
|  | $ | 513 |  |  | — | % |  |  |  |
|  | Term Extension and Rate Reduction
|  |  |  |  |  | Financial Effect
|  |  |  |  |  |  |  | Interest Rate Reduced
(Dollars in thousands) |  | Amortized Cost |  | % of Portfolio |  | Term Extended By |  | From |  | To
Nine Months Ended September 30, 2024 |  |  |  |  |  |  |  |  |  |
Commercial real estate |  | $ | 141 |  |  | — | % |  | 1.0 years |  | 12.5% |  | 10.0%
|  | $ | 141 |  |  | — | % |  |  |  |  |  |
|  | Term Extension and Principal Forgiveness
|  |  |  |  |  | Financial Effect
(Dollars in thousands) |  | Amortized Cost |  | % of Portfolio |  | Term Extended By |  | Principal Forgiven
Nine Months Ended September 30, 2024 |  |  |  |  |  |  |  |
Commercial |  | $ | 4,128 |  |  | 0.4 | % |  | 1.8 years |  | $ | 507 |
|  | $ | 4,128 |  |  | 0.1 | % |  |  |  |
|  | Payment Delay
|  |  |  |  |  | Financial Effect
(Dollars in thousands) |  | Amortized Cost |  | % of Portfolio |  | Payments Delayed By
Nine Months Ended September 30, 2025 |  |  |  |  |  |
Commercial |  | $ | 523 |  |  | — | % |  | 0.5 years
|  | $ | 523 |  |  | — | % |  |
Generally, if a loan to a borrower experiencing financial difficulty is modified, the Company will seek to obtain credit enhancements when possible. The following table presents the payment status of loans that have been modified in the last twelve months:
|  | September 30, 2025
(Dollars in thousands) |  | Current |  | Past Due 30-89 Days |  | Past Due 90 Days or More |  | Total
Commercial real estate |  | $ | 101,829 |  |  | $ | — |  |  | $ | — |  |  | $ | 101,829 |
Construction, land development, land |  | — |  |  | — |  |  | — |  |  | — |
1-4 family residential |  | 12 |  |  | — |  |  | — |  |  | 12 |
Farmland |  | — |  |  | — |  |  | — |  |  | — |
Commercial |  | 5,490 |  |  | 523 |  |  | — |  |  | 6,013 |
Factored receivables |  | — |  |  | — |  |  | — |  |  | — |
Consumer |  | — |  |  | — |  |  | — |  |  | — |
Mortgage warehouse |  | — |  |  | — |  |  | — |  |  | — |
|  | $ | 107,331 |  |  | $ | 523 |  |  | $ | — |  |  | $ | 107,854 |
At September 30, 2025, the Company had $69,000 of commitments to lend additional funds to borrowers experiencing financial difficulty for which the Company modified the terms of the loans in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension during the current period. There were no loans to borrowers experiencing financial difficulty that had a payment default during the three and nine months ended September 30, 2025 and were modified in the twelve months prior to that default. There were $1,909,000 of commercial loans to a borrower experiencing financial difficulty that had a payment default during the three and nine months ended September 30, 2024 and were modified in the form of a payment delay in the twelve months prior to that default. Default is determined at 90 or more days past due, upon charge-off, or upon foreclosure. Modified loans in default are individually evaluated for the allowance for credit losses or if the modified loan is deemed uncollectible, the loan, or a portion of the loan, is written off and the allowance for credit losses is adjusted accordingly. Residential Real Estate Loans In Process of Foreclosure At September 30, 2025 and December 31, 2024, the Company had no 1-4 family residential real estate loans for which formal foreclosure proceedings were in process. Other Real Estate Owned At September 30, 2025 and December 31, 2024, the Company had $210,000 and $0 of other real estate owned, net.

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

X
- References No definition available. + Details
Name: | us-gaap_ReceivablesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration