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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, 2025December 31, 2024
1-4 family residential$8,214 $1,167 
Commercial1,527 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, 2025December 31, 2024
(Dollars in thousands)Amortized
Cost		Unpaid
Principal		DifferenceAmortized
Cost		Unpaid
Principal		Difference
Commercial real estate$769,314 $769,589 $(275)$777,689 $777,980 $(291)
Construction, land development, land204,247 204,483 (236)203,804 204,268 (464)
1-4 family residential 180,970 180,211 759 154,020 153,711 309 
Farmland43,208 43,278 (70)56,366 56,450 (84)
Commercial1,144,872 1,155,281 (10,409)1,119,245 1,120,551 (1,306)
Factored receivables1,424,631 1,428,388 (3,757)1,204,510 1,208,486 (3,976)
Consumer17,235 17,252 (17)8,000 8,005 (5)
Mortgage warehouse1,202,445 1,202,445 — 1,023,326 1,023,326 — 
Total loans held for investment4,986,922 $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-offsRecoveriesInitial ACL on Loans Purchased with Credit DeteriorationEnding
Balance
Three Months Ended September 30, 2025
Commercial real estate$4,198 $306 $(36)$4 $— $4,472 
Construction, land development, land2,589 (415)— 46 — 2,220 
1-4 family residential1,560 243 (58)23 — 1,768 
Farmland302 (7)— — — 295 
Commercial17,813 1,724 (5,424)18 — 14,131 
Factored receivables10,553 2,310 (4,014)183 — 9,032 
Consumer466 114 (158)25 — 447 
Mortgage warehouse1,210 (26)— — — 1,184 
$38,691 $4,249 $(9,690)$299 $— $33,549 
(Dollars in thousands)Beginning
Balance		Credit Loss
Expense		Charge-offsRecoveriesInitial ACL on Loans Purchased with Credit DeteriorationEnding
Balance
Three Months Ended September 30, 2024
Commercial real estate$5,438 $(206)$(831)$— $— $4,401 
Construction, land development, land2,596 333 — — — 2,929 
1-4 family residential972 15 (18)1 — 970 
Farmland395 (1)— — — 394 
Commercial17,372 4,489 (1,913)18 — 19,966 
Factored receivables11,928 323 (951)270 — 11,570 
Consumer156 88 (114)16 — 146 
Mortgage warehouse734 133 — — — 867 
$39,591 $5,174 $(3,827)$305 $— $41,243 
(Dollars in thousands)Beginning
Balance		Credit Loss
Expense		Charge-offsRecoveriesInitial ACL on Loans Purchased with Credit DeteriorationEnding
Balance
Nine Months Ended September 30, 2025
Commercial real estate$3,825 $733 $(157)$71 $— $4,472 
Construction, land development, land2,873 (450)(250)47 — 2,220 
1-4 family residential1,404 442 (104)26 — 1,768 
Farmland386 (91)— — — 295 
Commercial21,419 2,486 (20,927)373 10,780 14,131 
Factored receivables9,600 1,181 (6,087)4,338 — 9,032 
Consumer185 584 (428)106 — 447 
Mortgage warehouse1,022 162 — — — 1,184 
$40,714 $5,047 $(27,953)$4,961 $10,780 $33,549 
(Dollars in thousands)Beginning
Balance		Credit Loss
Expense		Charge-offsRecoveriesInitial ACL on Loans Purchased with Credit DeteriorationEnding
Balance
Nine Months Ended September 30, 2024
Commercial real estate$6,030 $(798)$(831)$— $— $4,401 
Construction, land development, land965 1,963 — 1 — 2,929 
1-4 family residential927 71 (32)4 — 970 
Farmland442 (48)— — — 394 
Commercial14,060 9,558 (3,734)82 — 19,966 
Factored receivables11,896 3,045 (4,283)912 — 11,570 
Consumer171 221 (308)62 — 146 
Mortgage warehouse728 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 EstateAccounts
Receivable		EquipmentOtherTotalACL
Allocation
September 30, 2025
Commercial real estate$25,236 $— $— $— $25,236 $— 
Construction, land development, land— — — — — — 
1-4 family residential1,038 — — — 1,038 — 
Farmland1,418 — 59 166 1,643 — 
Commercial281 — 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 EstateAccounts
Receivable		EquipmentOtherTotalACL
Allocation
December 31, 2024
Commercial real estate$30,042 $— $— $4,211 $34,253 $28 
Construction, land development, land2,410 — — — 2,410 — 
1-4 family residential810 — — — 810 47 
Farmland1,870 — 73 53 1,996 — 
Commercial2,196 — 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		CurrentTotalPast 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 residential532 362 280 1,174 179,796 180,970 — 
Farmland— 234 458 692 42,516 43,208 — 
Commercial27,361 14,994 18,385 60,740 1,084,132 1,144,872 — 
Factored receivables20,566 3,781 1,300 25,647 1,398,984 1,424,631 1,300 
Consumer17 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		CurrentTotalPast 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 residential1,188 631 229 2,048 151,972 154,020 — 
Farmland601 140 150 891 55,475 56,366 — 
Commercial7,525 16,150 51,437 75,112 1,044,133 1,119,245 — 
Factored receivables24,828 4,193 24,718 53,739 1,150,771 1,204,510 24,718 
Consumer33 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, 2025December 31, 2024
(Dollars in thousands)Total NonaccrualNonaccrual
With No ACL		Total NonaccrualNonaccrual
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 residential1,011 1,011 810 763 
Farmland732 732 1,996 1,996 
Commercial56,454 48,241 73,437 45,405 
Factored receivables— — — — 
Consumer18 18 116 116 
Mortgage warehouse— — — — 
$66,597 $58,384 $90,023 $61,171 
The following table presents accrued interest on nonaccrual loans reversed through interest income:
Three Months Ended September 30,Nine Months Ended September 30,
(Dollars in thousands)2025202420252024
Commercial real estate$— $— $76 $— 
Construction, land development, land— — — 2 
1-4 family residential— 4 2 5 
Farmland11 — 11 13 
Commercial14 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, 2025December 31, 2024
Nonaccrual loans$66,597 $90,023 
Nonperforming factored receivables1,140 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, 202520252024202320222021Prior
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 
Classified2,071 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 
Classified4,276 — — — — — — — 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 
Classified6,347 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, 202420242023202220212020Prior
Commercial real estate
Pass$212,265 $77,836 $48,149 $79,860 $90,460 $28,579 $87,634 $125 $624,908 
Classified6,283 116,794 — 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 
Classified113 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 
Classified68 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 
Classified6,659 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 
Classified13,412 — — — 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 
Classified16 — 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 
Classified26,551 173,851 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 PortfolioTerm 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
Commercial17 — %1.0 years
$211 — %
Nine Months Ended September 30, 2025
Commercial real estate$99,551 12.9 %0.6 years
1-4 family residential12 — %5.4 years
Commercial5,490 0.5 %0.7 years
$105,053 2.1 %
Nine Months Ended September 30, 2024
Commercial real estate$194 — %0.8 years
Commercial17 — %1.0 years
Consumer18 0.3 %6.1 years
$229 — %
Term Extension and Payment Delay
Financial Effect
(Dollars in thousands)Amortized Cost % of PortfolioTerm Extended ByPayments Delayed By
Three Months Ended September 30, 2025
Commercial real estate16,091 2.1 %0.2 years0.2 years
$16,091 0.3 %
Three Months Ended September 30, 2024
Commercial513 — %0.7 years0.7 years
$513 — %
Nine Months Ended September 30, 2025
Commercial real estate$16,091 2.1 %0.6 years0.6 years
$16,091 0.3 %
Nine Months Ended September 30, 2024
Commercial513 — %0.7 years0.7 years
$513 — %
Term Extension and Rate Reduction
Financial Effect
Interest Rate Reduced
(Dollars in thousands)Amortized Cost% of PortfolioTerm Extended ByFromTo
Nine Months Ended September 30, 2024
Commercial real estate$141 — %1.0 years12.5%10.0%
$141 — %

Term Extension and Principal Forgiveness
Financial Effect
(Dollars in thousands)Amortized Cost % of PortfolioTerm Extended ByPrincipal 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 PortfolioPayments 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)CurrentPast 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 residential12 — — 12 
Farmland— — — — 
Commercial5,490 523 — 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.