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Loans | 9 Months Ended
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Sep. 30, 2025
Receivables [Abstract] |
Loans | Note 5 — Loans Loans consist of the following:
(Dollars in thousands) | September 30, 2025 |  | December 31, 2024 |  |
Loans held for sale | $ | 312 |  |  | $ | 10,494 |  |  |
LHFI: |  |  |  |  |
Loans secured by real estate: |  |  |  |  |
Commercial real estate(1) | $ | 2,506,879 |  |  | $ | 2,477,431 |  |  |
Construction/land/land development | 615,778 |  |  | 864,011 |  |  |
Residential real estate(2) | 2,001,297 |  |  | 1,857,589 |  |  |
Total real estate | 5,123,954 |  |  | 5,199,031 |  |  |
Commercial and industrial | 1,919,782 |  |  | 2,002,634 |  |  |
Mortgage warehouse lines of credit | 472,968 |  |  | 349,081 |  |  |
Consumer | 20,395 |  |  | 22,967 |  |  |
Total LHFI(3) | 7,537,099 |  |  | 7,573,713 |  |  |
Less: Allowance for loan credit losses (“ALCL”) | 96,259 |  |  | 91,060 |  |  |
LHFI, net | $ | 7,440,840 |  |  | $ | 7,482,653 |  |  |
____________________________ (1)Includes owner occupied commercial real estate of $986.9 million and $975.9 million at September 30, 2025, and December 31, 2024, respectively. (2)Includes multifamily real estate of $540.6 million and $425.5 million at September 30, 2025, and December 31, 2024, respectively. (3)Includes unamortized purchase accounting adjustment and net deferred loan fees of $9.9 million and $9.8 million at September 30, 2025, and December 31, 2024, respectively. Credit quality indicators. As part of the Company’s commitment to managing the credit quality of its loan portfolio, management annually and periodically updates and evaluates certain credit quality indicators, which include but are not limited to (i) weighted-average risk rating of the loan portfolio, (ii) net charge-offs, (iii) level of non-performing loans, (iv) level of classified loans (defined as substandard, doubtful and loss), and (v) the general economic conditions particularly in the cities and states in which the Company operates. The Company maintains an internal risk rating system where ratings are assigned to individual loans based on assessed risk. Loan risk ratings are the primary indicator of credit quality for the loan portfolio and are continually evaluated to ensure they are appropriate based on currently available information. The following is a summary description of the Company’s internal risk ratings:
• Pass (1-6) | Loans within this risk rating are further categorized as follows:
Minimal risk (1) | Well-collateralized by cash equivalent instruments held by the Bank.
Moderate risk (2) | Borrowers with excellent asset quality and liquidity. Borrowers’ capitalization and liquidity exceed industry norms. Borrowers in this category have significant levels of liquid assets and have a low level of leverage.
Better than average risk (3) | Borrowers with strong financial strength and excellent liquidity that consistently demonstrate strong operating performance. Borrowers in this category generally have a sizable net worth that can be converted into liquid assets within 12 months.
Average risk (4) | Borrowers with sound credit quality and financial performance, including liquidity. Borrowers are supported by sufficient cash flow coverage generated through operations across the full business cycle.
Marginally acceptable risk (5) | Loans generally meet minimum requirements for an acceptable loan in accordance with lending policy but possess one or more attributes that cause the overall risk profile to be higher than the majority of newly approved loans.
Watch (6) | A passing loan with one or more factors that identify a potential weakness in the overall ability of the borrower to repay the loan. These weaknesses are generally mitigated by other factors that reduce the risk of delinquency or loss.
• Special Mention (7) | This grade is intended to be temporary and includes borrowers whose credit quality has deteriorated and is at risk of further decline.
• Substandard (8) | This grade includes “Substandard” loans under regulatory guidelines. Substandard loans exhibit a well-defined weakness that jeopardizes debt repayment in accordance with contractual agreements, even though the loan may be performing. These obligations are characterized by the distinct possibility that a loss may be incurred if these weaknesses are not corrected, and repayment may be dependent upon collateral liquidation or secondary source of repayment.
• Doubtful (9) | This grade includes “Doubtful” loans under regulatory guidelines. Such loans are placed on nonaccrual status and repayment may be dependent upon collateral with no readily determinable valuation or valuations that are highly subjective in nature. Repayment for these loans is considered improbable based on currently existing facts and circumstances.
• Loss (0) | This grade includes “Loss” loans under regulatory guidelines. Loss loans are charged-off or written down when repayment is not expected.
In connection with the review of the loan portfolio, the Company considers risk elements attributable to particular loan types or categories in assessing the quality of individual loans. The list of loans to be reviewed for possible individual evaluation consists of unsecured loans over 90 days past due; loans greater than $50,000 that are either modified loans to borrowers experiencing financial difficulty or collateralized loans 180 days or more past due; as well as loans greater than $100,000 in which the borrower has either filed bankruptcy, is rated classified or non-accrual, and/or is a consumer loan with a FICO score under 625. Loans $50,000 or less will be evaluated collectively in designated pools unless a loss exposure has been identified. Some additional risk elements considered by loan type include: •for commercial real estate loans, the debt service coverage ratio, operating results of the owner in the case of owner-occupied properties, the loan to value ratio, the age and condition of the collateral and the volatility of income, property value and future operating results typical of properties of that type; •for construction, land and land development loans, the perceived feasibility of the project, including the ability to sell developed lots or improvements constructed for resale or the ability to lease property constructed for lease, the quality and nature of contracts for presale or prelease, if any, experience and ability of the developer and loan to value ratio; •for residential mortgage loans, the borrower’s ability to repay the loan, including a consideration of the debt to income ratio and employment and income stability, the loan-to-value ratio, and the age, condition and marketability of the collateral; •for commercial and industrial loans, the debt service coverage ratio (income from the business in excess of operating expenses compared to loan repayment requirements), the operating results of the commercial, industrial or professional enterprise, the borrower’s business, professional and financial ability and expertise, the specific risks and volatility of income and operating results typical for businesses in that category and the value, nature and marketability of collateral; and •for mortgage warehouse loans, the borrower’s adherence to agency or investor underwriting guidelines, while the risk associated with the underlying consumer mortgage loan repayments, similar to other consumer loans, depends on the borrower’s financial stability and are more likely than commercial loans to be adversely affected by divorce, job loss, illness and other personal hardships. Purchased loans that have experienced more than insignificant credit deterioration since origination at the time of acquisition are purchase credit deteriorated (“PCD”) loans. An allowance for credit losses is determined using the same methodology as other individually evaluated loans. As a result of the merger with BTH Holdings, Inc. (“BTH”), the Company held approximately $5.5 million and $12.3 million of unpaid principal balance PCD loans at September 30, 2025 and December 31, 2024, respectively. Please see Note 1 — Significant Accounting Policies included in the 2024 Form 10-K, filed with the SEC for a description of our accounting policies related to purchased financial assets with credit deterioration. The following table reflects recorded investments in loans by credit quality indicator and origination year at September 30, 2025, and gross charge-offs for the nine months ended September 30, 2025, excluding loans held for sale. Loans acquired are shown in the table by origination year, not merger date. The Company had an immaterial amount of revolving loans converted to term loans at September 30, 2025.
| Term Loans |
| Amortized Cost Basis by Origination Year |
(Dollars in thousands) | 2025 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | Prior |  | Revolving Loans Amortized Cost Basis |  |  |  | Total |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 404,710 |  |  | $ | 225,421 |  |  | $ | 313,530 |  |  | $ | 768,090 |  |  | $ | 347,048 |  |  | $ | 344,505 |  |  | $ | 53,330 |  |  |  |  | $ | 2,456,634 |  |
Special mention | — |  |  | 3,130 |  |  | 18,895 |  |  | 6,266 |  |  | — |  |  | 2,836 |  |  | — |  |  |  |  | 31,127 |  |
Classified | 262 |  |  | 7,404 |  |  | 2,233 |  |  | 1,940 |  |  | 2,228 |  |  | 4,952 |  |  | 99 |  |  |  |  | 19,118 |  |
Total commercial real estate loans | $ | 404,972 |  |  | $ | 235,955 |  |  | $ | 334,658 |  |  | $ | 776,296 |  |  | $ | 349,276 |  |  | $ | 352,293 |  |  | $ | 53,429 |  |  |  |  | $ | 2,506,879 |  |
Year-to-date gross charge-offs | $ | — |  |  | $ | — |  |  | $ | 10 |  |  | $ | — |  |  | $ | 34 |  |  | $ | 427 |  |  | $ | 257 |  |  |  |  | $ | 728 |  |
Construction/land/land development: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 154,801 |  |  | $ | 100,762 |  |  | $ | 104,081 |  |  | $ | 130,933 |  |  | $ | 61,467 |  |  | $ | 6,656 |  |  | $ | 32,221 |  |  |  |  | $ | 590,921 |  |
Special mention | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  | — |  |
Classified | 125 |  |  | 723 |  |  | 2,256 |  |  | 11,674 |  |  | 3,029 |  |  | 912 |  |  | 6,138 |  |  |  |  | 24,857 |  |
Total construction/land/land development loans | $ | 154,926 |  |  | $ | 101,485 |  |  | $ | 106,337 |  |  | $ | 142,607 |  |  | $ | 64,496 |  |  | $ | 7,568 |  |  | $ | 38,359 |  |  |  |  | $ | 615,778 |  |
Year-to-date gross charge-offs | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | — |  |
Residential real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 271,944 |  |  | $ | 123,616 |  |  | $ | 283,982 |  |  | $ | 575,020 |  |  | $ | 256,152 |  |  | $ | 333,106 |  |  | $ | 114,358 |  |  |  |  | $ | 1,958,178 |  |
Special mention | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  | — |  |
Classified | 2,896 |  |  | 883 |  |  | 9,154 |  |  | 20,794 |  |  | 4,042 |  |  | 5,182 |  |  | 168 |  |  |  |  | 43,119 |  |
Total residential real estate loans | $ | 274,840 |  |  | $ | 124,499 |  |  | $ | 293,136 |  |  | $ | 595,814 |  |  | $ | 260,194 |  |  | $ | 338,288 |  |  | $ | 114,526 |  |  |  |  | $ | 2,001,297 |  |
Year-to-date gross charge-offs | $ | — |  |  | $ | — |  |  | $ | 20 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 99 |  |  |  |  | $ | 119 |  |
Commercial and industrial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 290,754 |  |  | $ | 199,336 |  |  | $ | 184,042 |  |  | $ | 90,088 |  |  | $ | 60,202 |  |  | $ | 33,284 |  |  | $ | 1,005,038 |  |  |  |  | $ | 1,862,744 |  |
Special mention | — |  |  | 42 |  |  | 50 |  |  | 1,612 |  |  | 188 |  |  | — |  |  | 3,995 |  |  |  |  | 5,887 |  |
Classified | 5,499 |  |  | 5,455 |  |  | 5,082 |  |  | 7,239 |  |  | 2,951 |  |  | 847 |  |  | 24,078 |  |  |  |  | 51,151 |  |
Total commercial and industrial loans | $ | 296,253 |  |  | $ | 204,833 |  |  | $ | 189,174 |  |  | $ | 98,939 |  |  | $ | 63,341 |  |  | $ | 34,131 |  |  | $ | 1,033,111 |  |  |  |  | $ | 1,919,782 |  |
Year-to-date gross charge-offs | $ | 23 |  |  | $ | 1,230 |  |  | $ | 553 |  |  | $ | 3,074 |  |  | $ | 757 |  |  | $ | 1,602 |  |  | $ | 32,501 |  |  |  |  | $ | 39,740 |  |
Mortgage Warehouse Lines of Credit: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 472,968 |  |  |  |  | $ | 472,968 |  |
Year-to-date gross charge-offs | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | — |  |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 7,476 |  |  | $ | 4,630 |  |  | $ | 2,056 |  |  | $ | 503 |  |  | $ | 136 |  |  | $ | 38 |  |  | $ | 5,468 |  |  |  |  | $ | 20,307 |  |
Classified | — |  |  | 39 |  |  | 27 |  |  | 20 |  |  | — |  |  | — |  |  | 2 |  |  |  |  | 88 |  |
Total consumer loans | $ | 7,476 |  |  | $ | 4,669 |  |  | $ | 2,083 |  |  | $ | 523 |  |  | $ | 136 |  |  | $ | 38 |  |  | $ | 5,470 |  |  |  |  | $ | 20,395 |  |
Year-to-date gross charge-offs | $ | 12 |  |  | $ | 21 |  |  | $ | 21 |  |  | $ | 2 |  |  | $ | — |  |  | $ | 20 |  |  | $ | 91 |  |  |  |  | $ | 167 |  |
The following table reflects recorded investments in loans by credit quality indicator and origination year at December 31, 2024, and gross charge-offs for the year ended December 31, 2024, excluding loans held for sale. Loans acquired are shown in the table by origination year, not merger date. The Company had an immaterial amount of revolving loans converted to term loans at December 31, 2024.
| Term Loans |
| Amortized Cost Basis by Origination Year |
(Dollars in thousands) | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior |  | Revolving Loans Amortized Cost Basis |  |  |  | Total |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 229,213 |  |  | $ | 355,744 |  |  | $ | 918,847 |  |  | $ | 407,666 |  |  | $ | 220,040 |  |  | $ | 277,379 |  |  | $ | 54,391 |  |  |  |  | $ | 2,463,280 |  |
Special mention | 1,209 |  |  | — |  |  | — |  |  | 23 |  |  | 907 |  |  | 1,252 |  |  | 238 |  |  |  |  | 3,629 |  |
Classified | 949 |  |  | 1,151 |  |  | 1,155 |  |  | 2,503 |  |  | 1,539 |  |  | 2,968 |  |  | 257 |  |  |  |  | 10,522 |  |
Total commercial real estate loans | $ | 231,371 |  |  | $ | 356,895 |  |  | $ | 920,002 |  |  | $ | 410,192 |  |  | $ | 222,486 |  |  | $ | 281,599 |  |  | $ | 54,886 |  |  |  |  | $ | 2,477,431 |  |
Year-to-date gross charge-offs | $ | — |  |  | $ | 36 |  |  | $ | 193 |  |  | $ | — |  |  | $ | 251 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 480 |  |
Construction/land/land development: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 153,847 |  |  | $ | 206,970 |  |  | $ | 290,035 |  |  | $ | 123,645 |  |  | $ | 14,903 |  |  | $ | 3,343 |  |  | $ | 47,982 |  |  |  |  | $ | 840,725 |  |
Special mention | — |  |  | — |  |  | 547 |  |  | — |  |  | — |  |  | — |  |  | 145 |  |  |  |  | 692 |  |
Classified | 1,366 |  |  | 2,331 |  |  | 10,552 |  |  | 5,053 |  |  | 731 |  |  | 219 |  |  | 2,342 |  |  |  |  | 22,594 |  |
Total construction/land/land development loans | $ | 155,213 |  |  | $ | 209,301 |  |  | $ | 301,134 |  |  | $ | 128,698 |  |  | $ | 15,634 |  |  | $ | 3,562 |  |  | $ | 50,469 |  |  |  |  | $ | 864,011 |  |
Year-to-date gross charge-offs | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | — |  |
Residential real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 147,379 |  |  | $ | 319,186 |  |  | $ | 522,226 |  |  | $ | 305,893 |  |  | $ | 215,305 |  |  | $ | 179,503 |  |  | $ | 112,471 |  |  |  |  | $ | 1,801,963 |  |
Special mention | — |  |  | — |  |  | — |  |  | 18,176 |  |  | 124 |  |  | 309 |  |  | — |  |  |  |  | 18,609 |  |
Classified | 1,962 |  |  | 8,068 |  |  | 17,898 |  |  | 3,123 |  |  | 748 |  |  | 4,854 |  |  | 364 |  |  |  |  | 37,017 |  |
Total residential real estate loans | $ | 149,341 |  |  | $ | 327,254 |  |  | $ | 540,124 |  |  | $ | 327,192 |  |  | $ | 216,177 |  |  | $ | 184,666 |  |  | $ | 112,835 |  |  |  |  | $ | 1,857,589 |  |
Year-to-date gross charge-offs | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 11 |  |  | $ | — |  |  |  |  | $ | 11 |  |
Commercial and industrial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 280,152 |  |  | $ | 265,237 |  |  | $ | 171,157 |  |  | $ | 87,040 |  |  | $ | 20,938 |  |  | $ | 54,565 |  |  | $ | 1,066,600 |  |  |  |  | $ | 1,945,689 |  |
Special mention | — |  |  | 70 |  |  | 5,652 |  |  | 39 |  |  | — |  |  | 545 |  |  | 2,172 |  |  |  |  | 8,478 |  |
Classified | 4,312 |  |  | 6,706 |  |  | 13,578 |  |  | 1,022 |  |  | 691 |  |  | 375 |  |  | 21,783 |  |  |  |  | 48,467 |  |
Total commercial and industrial loans | $ | 284,464 |  |  | $ | 272,013 |  |  | $ | 190,387 |  |  | $ | 88,101 |  |  | $ | 21,629 |  |  | $ | 55,485 |  |  | $ | 1,090,555 |  |  |  |  | $ | 2,002,634 |  |
Year-to-date gross charge-offs | $ | 346 |  |  | $ | 1,171 |  |  | $ | 2,103 |  |  | $ | 4,477 |  |  | $ | 162 |  |  | $ | 595 |  |  | $ | 13,933 |  |  |  |  | $ | 22,787 |  |
Mortgage Warehouse Lines of Credit: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 349,081 |  |  |  |  | $ | 349,081 |  |
Year-to-date gross charge-offs | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | — |  |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 10,060 |  |  | $ | 4,290 |  |  | $ | 1,277 |  |  | $ | 271 |  |  | $ | 210 |  |  | $ | 32 |  |  | $ | 6,645 |  |  |  |  | $ | 22,785 |  |
Classified | 23 |  |  | 64 |  |  | 79 |  |  | — |  |  | — |  |  | — |  |  | 16 |  |  |  |  | 182 |  |
Total consumer loans | $ | 10,083 |  |  | $ | 4,354 |  |  | $ | 1,356 |  |  | $ | 271 |  |  | $ | 210 |  |  | $ | 32 |  |  | $ | 6,661 |  |  |  |  | $ | 22,967 |  |
Year-to-date gross charge-offs | $ | — |  |  | $ | 19 |  |  | $ | 47 |  |  | $ | 3 |  |  | $ | — |  |  | $ | 5 |  |  | $ | 288 |  |  |  |  | $ | 362 |  |
The following tables present the Company’s loan portfolio aging analysis at the dates indicated:
| September 30, 2025 |
(Dollars in thousands) | 30-59 Days Past Due |  | 60-89 Days Past Due |  | Loans Past Due 90 Days or More |  | Total Past Due |  | Current Loans |  | Total Loans Receivable |  | Accruing Loans 90 or More Days Past Due |
Loans secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate | $ | 5,288 |  |  | $ | 665 |  |  | $ | 7,765 |  |  | $ | 13,718 |  |  | $ | 2,493,161 |  |  | $ | 2,506,879 |  |  | $ | — |  |
Construction/land/land development | 24 |  |  | 42 |  |  | 12,909 |  |  | 12,975 |  |  | 602,803 |  |  | 615,778 |  |  | — |  |
Residential real estate | 415 |  |  | 8,621 |  |  | 22,378 |  |  | 31,414 |  |  | 1,969,883 |  |  | 2,001,297 |  |  | — |  |
Total real estate | 5,727 |  |  | 9,328 |  |  | 43,052 |  |  | 58,107 |  |  | 5,065,847 |  |  | 5,123,954 |  |  | — |  |
Commercial and industrial | 2,688 |  |  | 292 |  |  | 11,237 |  |  | 14,217 |  |  | 1,905,565 |  |  | 1,919,782 |  |  | — |  |
Mortgage warehouse lines of credit | — |  |  | — |  |  | — |  |  | — |  |  | 472,968 |  |  | 472,968 |  |  | — |  |
Consumer | 28 |  |  | 130 |  |  | 30 |  |  | 188 |  |  | 20,207 |  |  | 20,395 |  |  | — |  |
Total LHFI | $ | 8,443 |  |  | $ | 9,750 |  |  | $ | 54,319 |  |  | $ | 72,512 |  |  | $ | 7,464,587 |  |  | $ | 7,537,099 |  |  | $ | — |  |
| December 31, 2024
(Dollars in thousands) | 30-59 Days Past Due |  | 60-89 Days Past Due |  | Loans Past Due 90 Days or More |  | Total Past Due |  | Current Loans |  | Total Loans Receivable |  | Accruing Loans 90 or More Days Past Due
Loans secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate | $ | 3,576 |  |  | $ | 1,019 |  |  | $ | 957 |  |  | $ | 5,552 |  |  | $ | 2,471,879 |  |  | $ | 2,477,431 |  |  | $ | — |
Construction/land/land development | 441 |  |  | 33 |  |  | 4,876 |  |  | 5,350 |  |  | 858,661 |  |  | 864,011 |  |  | — |
Residential real estate | 12,655 |  |  | 5,219 |  |  | 5,723 |  |  | 23,597 |  |  | 1,833,992 |  |  | 1,857,589 |  |  | — |
Total real estate | 16,672 |  |  | 6,271 |  |  | 11,556 |  |  | 34,499 |  |  | 5,164,532 |  |  | 5,199,031 |  |  | — |
Commercial and industrial | 3,873 |  |  | 2,206 |  |  | 1,596 |  |  | 7,675 |  |  | 1,994,959 |  |  | 2,002,634 |  |  | — |
Mortgage warehouse lines of credit | — |  |  | — |  |  | — |  |  | — |  |  | 349,081 |  |  | 349,081 |  |  | — |
Consumer | 199 |  |  | 7 |  |  | 57 |  |  | 263 |  |  | 22,704 |  |  | 22,967 |  |  | — |
Total LHFI | $ | 20,744 |  |  | $ | 8,484 |  |  | $ | 13,209 |  |  | $ | 42,437 |  |  | $ | 7,531,276 |  |  | $ | 7,573,713 |  |  | $ | — |
The following tables detail activity in the ALCL by portfolio segment. Management has made the accounting policy election to exclude accrued interest receivable on loans from the estimate of loan credit losses. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. Accrued interest on loans receivable of $29.0 million and $32.6 million at September 30, 2025 and December 31, 2024, respectively, was included in accrued interest receivable and other assets on the face of the consolidated balance sheets.
| Three Months Ended September 30, 2025 |  |  |  |
| Commercial Real Estate |  | Construction/ Land/ Land Development |  | Residential Real Estate |  | Commercial and Industrial |  | Mortgage Warehouse Lines of Credit |  | Consumer |  | Total |  |  |  |  |  |  |  |  |  |
| (Dollars in thousands) |  |  |  |  |  |  |  |  |
Beginning balance | $ | 16,785 |  |  | $ | 6,324 |  |  | $ | 13,639 |  |  | $ | 54,175 |  |  | $ | 780 |  |  | $ | 723 |  |  | $ | 92,426 |  |  |  |  |  |  |  |  |  |  |
Charge-offs | — |  |  | — |  |  | — |  |  | 32,184 |  |  | — |  |  | 22 |  |  | 32,206 |  |  |  |  |  |  |  |  |  |  |
Recoveries | 5 |  |  | — |  |  | 3 |  |  | 812 |  |  | — |  |  | 3 |  |  | 823 |  |  |  |  |  |  |  |  |  |  |
Provision(1) | 1,386 |  |  | 1,417 |  |  | 722 |  |  | 31,679 |  |  | 47 |  |  | (35) |  |  | 35,216 |  |  |  |  |  |  |  |  |  |  |
Ending balance | $ | 18,176 |  |  | $ | 7,741 |  |  | $ | 14,364 |  |  | $ | 54,482 |  |  | $ | 827 |  |  | $ | 669 |  |  | $ | 96,259 |  |  |  |  |  |  |  |  |  |  |
Average balance | $ | 2,450,148 |  |  | $ | 644,455 |  |  | $ | 1,992,766 |  |  | $ | 1,994,755 |  |  | $ | 420,848 |  |  | $ | 20,652 |  |  | $ | 7,523,624 |  |  |  |  |  |  |  |  |  |  |
Net charge-offs to loan average balance (annualized) | — | % |  | — | % |  | — | % |  | 6.24 | % |  | — | % |  | 0.37 | % |  | 1.65 | % |  |  |  |  |  |  |  |  |  |
____________________________ (1)The $36.8 million provision for credit losses on the consolidated statements of income includes a $35.2 million provision for loan credit losses, a $1.6 million provision expense for off-balance sheet commitments and a $4,000 net benefit provision for held to maturity securities credit losses for the three months ended September 30, 2025.
| Three Months Ended September 30, 2024
| Commercial Real Estate |  |  |  | Construction/ Land/ Land Development |  | Residential Real Estate |  | Commercial and Industrial |  | Mortgage Warehouse Lines of Credit |  | Consumer |  |  |  |  |  |  | Total |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in thousands) |  |  |  |  |  |  |  |  |
Beginning balance | $ | 17,244 |  |  |  |  | $ | 9,274 |  |  | $ | 11,780 |  |  | $ | 61,184 |  |  | $ | 676 |  |  | $ | 707 |  |  |  |  |  |  |  | $ | 100,865 |  |  |  |  |  |  |  |  |  |  |  |  |
Charge-offs | — |  |  |  |  | — |  |  | 11 |  |  | 11,195 |  |  | — |  |  | 20 |  |  |  |  |  |  |  | 11,226 |  |  |  |  |  |  |  |  |  |  |  |  |
Recoveries | 21 |  |  |  |  | — |  |  | 4 |  |  | 1,680 |  |  | — |  |  | 1 |  |  |  |  |  |  |  | 1,706 |  |  |  |  |  |  |  |  |  |  |  |  |
Provision(1) | (435) |  |  |  |  | (546) |  |  | 302 |  |  | 5,070 |  |  | (13) |  |  | 266 |  |  |  |  |  |  |  | 4,644 |  |  |  |  |  |  |  |  |  |  |  |  |
Ending balance | $ | 16,830 |  |  |  |  | $ | 8,728 |  |  | $ | 12,075 |  |  | $ | 56,739 |  |  | $ | 663 |  |  | $ | 954 |  |  |  |  |  |  |  | $ | 95,989 |  |  |  |  |  |  |  |  |  |  |  |  |
Average balance | $ | 2,507,566 |  |  |  |  | $ | 1,019,302 |  |  | $ | 1,824,725 |  |  | $ | 2,071,984 |  |  | $ | 484,680 |  |  | $ | 22,739 |  |  |  |  |  |  |  | $ | 7,930,996 |  |  |  |  |  |  |  |  |  |  |  |  |
Net charge-offs to loan average balance (annualized) | — | % |  |  |  | — | % |  | — | % |  | 1.83 | % |  | — | % |  | 0.33 | % |  |  |  |  |  |  | 0.48 | % |  |  |  |  |  |  |  |  |  |  |  |
____________________________ (1)The $4.6 million provision for credit losses on the consolidated statements of income includes a $4.6 million provision for loan credit losses, a $36,000 net benefit provision for off-balance sheet commitments and a $5,000 net benefit provision for held to maturity securities credit losses for the three months ended September 30, 2024. |  |  |  |  |  |  |  |  |
| Nine Months Ended September 30, 2025 |
| Commercial Real Estate |  | Construction/ Land/ Land Development |  | Residential Real Estate |  | Commercial and Industrial |  | Mortgage Warehouse Lines of Credit |  | Consumer |  | Total |  |
| (Dollars in thousands) |
Beginning balance | $ | 16,546 |  |  | $ | 7,398 |  |  | $ | 12,454 |  |  | $ | 53,449 |  |  | $ | 501 |  |  | $ | 712 |  |  | $ | 91,060 |  |  |
Charge-offs | 728 |  |  | — |  |  | 119 |  |  | 39,740 |  |  | — |  |  | 167 |  |  | 40,754 |  |  |
Recoveries | 18 |  |  | — |  |  | 56 |  |  | 4,244 |  |  | — |  |  | 25 |  |  | 4,343 |  |  |
Provision(1) | 2,340 |  |  | 343 |  |  | 1,973 |  |  | 36,529 |  |  | 326 |  |  | 99 |  |  | 41,610 |  |  |
Ending balance | $ | 18,176 |  |  | $ | 7,741 |  |  | $ | 14,364 |  |  | $ | 54,482 |  |  | $ | 827 |  |  | $ | 669 |  |  | $ | 96,259 |  |  |
Average balance | $ | 2,435,301 |  |  | $ | 734,621 |  |  | $ | 1,953,007 |  |  | $ | 2,022,286 |  |  | $ | 397,466 |  |  | $ | 21,730 |  |  | $ | 7,564,411 |  |  |
Net charge-offs to loan average balance (annualized) | 0.04 | % |  | — | % |  | — | % |  | 2.35 | % |  | — | % |  | 0.87 | % |  | 0.64 | % |  |
_________________________ (1)The $43.1 million provision for credit losses on the consolidated statement of income includes a $41.6 million provision for loan losses, a $1.5 million provision expense for off-balance sheet commitments and a $7,000 net benefit provision for held to maturity securities credit losses for the nine months ended September 30, 2025. |  |
| Nine Months Ended September 30, 2024 |  |
| Commercial Real Estate |  | Construction/ Land/ Land Development |  | Residential Real Estate |  | Commercial and Industrial |  | Mortgage Warehouse Lines of Credit |  | Consumer |  |  |  |  |  | Total |  |
| (Dollars in thousands) |  |
Beginning balance | $ | 19,625 |  |  | $ | 9,990 |  |  | $ | 10,619 |  |  | $ | 55,330 |  |  | $ | 529 |  |  | $ | 775 |  |  |  |  |  |  | $ | 96,868 |  |  |
Charge-offs | 480 |  |  | — |  |  | 11 |  |  | 21,044 |  |  | — |  |  | 80 |  |  |  |  |  |  | 21,615 |  |  |
Recoveries | 318 |  |  | — |  |  | 12 |  |  | 6,228 |  |  | — |  |  | 9 |  |  |  |  |  |  | 6,567 |  |  |
Provision(1) | (2,633) |  |  | (1,262) |  |  | 1,455 |  |  | 16,225 |  |  | 134 |  |  | 250 |  |  |  |  |  |  | 14,169 |  |  |
Ending balance | $ | 16,830 |  |  | $ | 8,728 |  |  | $ | 12,075 |  |  | $ | 56,739 |  |  | $ | 663 |  |  | $ | 954 |  |  |  |  |  |  | $ | 95,989 |  |  |
Average balance | $ | 2,481,274 |  |  | $ | 1,069,360 |  |  | $ | 1,784,035 |  |  | $ | 2,107,195 |  |  | $ | 407,553 |  |  | $ | 22,818 |  |  |  |  |  |  | $ | 7,872,235 |  |  |
Net charge-offs to loan average balance (annualized) | 0.01 | % |  | — | % |  | — | % |  | 0.94 | % |  | — | % |  | 0.42 | % |  |  |  |  |  | 0.26 | % |  |
____________________________ (1)The $12.8 million provision for credit losses on the consolidated statements of income includes a $14.2 million provision for loan credit losses, a $1.3 million and $11,000 net benefit provision for off-balance sheet commitments and held to maturity securities credit losses, respectively, for the nine months ended September 30, 2024. |  |
The increases in charge-offs during the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024, were primarily due to net charge-offs of $28.4 million in the current quarter related to the suspected borrower fraud impacting the Tricolor Holdings, LLC loan relationship, which was previously disclosed in our Current Report on Form 8-K filed on September 10, 2025. The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related ALCL allocated to these loans.
| September 30, 2025
(Dollars in thousands) | Commercial Real Estate |  | Construction/ Land/ Land Development |  | Residential Real Estate |  | Commercial and Industrial |  | Mortgage Warehouse Lines of Credit |  | Consumer |  | Total
Real Estate | $ | 1,736 |  |  | $ | 206 |  |  | $ | 11,833 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 13,775 |
Accounts Receivable | — |  |  | — |  |  | — |  |  | 300 |  |  | — |  |  | — |  |  | 300 |
Equipment | — |  |  | — |  |  | — |  |  | 40 |  |  | — |  |  | — |  |  | 40 |
Other | — |  |  | — |  |  | — |  |  | 193 |  |  | — |  |  | — |  |  | 193 |
Total | $ | 1,736 |  |  | $ | 206 |  |  | $ | 11,833 |  |  | $ | 533 |  |  | $ | — |  |  | $ | — |  |  | $ | 14,308 |
ALCL Allocation | $ | — |  |  | $ | — |  |  | $ | 113 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 113 |
| December 31, 2024
(Dollars in thousands) | Commercial Real Estate |  | Construction/ Land/ Land Development |  | Residential Real Estate |  | Commercial and Industrial |  | Mortgage Warehouse Lines of Credit |  | Consumer |  | Total
Real Estate | $ | 832 |  |  | $ | — |  |  | $ | 16,804 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 17,636 |
Equipment | — |  |  | — |  |  | — |  |  | 42 |  |  | — |  |  | 46 |  |  | 88 |
Total | $ | 832 |  |  | $ | — |  |  | $ | 16,804 |  |  | $ | 42 |  |  | $ | — |  |  | $ | 46 |  |  | $ | 17,724 |
ALCL Allocation | $ | — |  |  | $ | — |  |  | $ | 121 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 121 |
Collateral-dependent loans consist primarily of residential real estate, commercial real estate and commercial and industrial loans. These loans are individually evaluated when foreclosure is probable or when the repayment of the loan is expected to be provided substantially through the operation or sale of the underlying collateral. In the case of commercial and industrial loans secured by equipment, the fair value of the collateral is estimated by third-party valuation experts. Loan balances are charged down to the underlying collateral value when they are deemed uncollectible. Note that the Company did not elect to use the collateral maintenance agreement practical expedient available under the current expected credit loss (“CECL”) guidance. Nonaccrual LHFI was as follows:
| Nonaccrual With No Allowance for Credit Loss |  | Total Nonaccrual |
(Dollars in thousands) Loans secured by real estate: | September 30, 2025 |  | December 31, 2024 |  | September 30, 2025 |  | December 31, 2024 |
Commercial real estate | $ | 9,594 |  |  | $ | 832 |  |  | $ | 11,736 |  |  | $ | 4,974 |  |
Construction/land/land development | 8,385 |  |  | — |  |  | 17,047 |  |  | 18,505 |  |
Residential real estate | 37,510 |  |  | 16,048 |  |  | 44,368 |  |  | 36,221 |  |
Total real estate | 55,489 |  |  | 16,880 |  |  | 73,151 |  |  | 59,700 |  |
Commercial and industrial | 1,004 |  |  | 42 |  |  | 15,043 |  |  | 15,120 |  |
Consumer | — |  |  | 46 |  |  | 88 |  |  | 182 |  |
Total nonaccrual loans | $ | 56,493 |  |  | $ | 16,968 |  |  | $ | 88,282 |  |  | $ | 75,002 |  |
All interest formerly accrued but not received for loans placed on nonaccrual status is reversed from interest income. Subsequent receipts on nonaccrual loans are recorded as a reduction of principal, and interest income is recorded only after principal recovery is reasonably assured. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. No interest income was recorded on nonaccrual loans while they were considered nonaccrual during the nine months ended September 30, 2025 and 2024. The tables below summarize modifications made to borrowers experiencing financial difficulty by loan and modification type during the three months ended September 30, 2025 and 2024.
|  |  |  |  | Three Months Ended September 30, 2025 |
|  |  | Term Extension |  |  |  | Other-Than-Insignificant Payment Delay |  |  |
(Dollars in thousands) |  |  |  |  | Amortized Cost |  | % of Loans |  |  |  |  |  | Amortized Cost |  | % of Loans |  |  |  |  |
Loans secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate |  |  |  |  | $ | 982 |  |  | 0.04 | % |  |  |  |  |  | $ | — |  |  | — | % |  |  |  |  |
Construction/land/land development |  |  |  |  | 4,033 |  |  | 0.65 |  |  |  |  |  |  | — |  |  | — |  |  |  |  |  |
Residential real estate |  |  |  |  | 1,088 |  |  | 0.05 |  |  |  |  |  |  | 67 |  |  | — |  |  |  |  |  |
Total real estate |  |  |  |  | 6,103 |  |  | 0.12 |  |  |  |  |  |  | 67 |  |  | — |  |  |  |  |  |
Commercial and industrial |  |  |  |  | 25,467 |  |  | 1.33 |  |  |  |  |  |  | 30 |  |  | — |  |  |  |  |  |
Consumer |  |  |  |  | 10 |  |  | 0.05 |  |  |  |  |  |  | — |  |  | — |  |  |  |  |  |
Total |  |  |  |  | $ | 31,580 |  |  | 0.42 |  |  |  |  |  |  | $ | 97 |  |  | — |  |  |  |  |  |
| Three Months Ended September 30, 2024 |
| Term Extension |  |  |  |  |  |  |
(Dollars in thousands) | Amortized Cost |  | % of Loans |  |  |  |  |  |  |  |  |  |  |  |  |
Loans secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate | $ | 257 |  |  | 0.01 | % |  |  |  |  |  |  |  |  |  |  |  |  |
Construction/land/land development | 346 |  |  | 0.03 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential real estate | 1,769 |  |  | 0.10 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total real estate | 2,372 |  |  | 0.04 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial(1) | 10,689 |  |  | 0.52 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total | $ | 13,061 |  |  | 0.16 |  |  |  |  |  |  |  |  |  |  |  |  |  |
____________________________ (1)Does not include the loans impacted by the questioned activity as a result of not meeting the modification criteria as described in the Accounting Standards Codification 310-10-50-36, “Modifications”. |
The tables below summarize modifications made to borrowers experiencing financial difficulty by loan and modification type during the nine months ended September 30, 2025 and 2024.
|  |  |  |  | Nine Months Ended September 30, 2025 |
|  |  | Term Extension |  |  |  | Other-Than-Insignificant Payment Delay |  |  |
(Dollars in thousands) |  |  |  |  | Amortized Cost |  | % of Loans |  |  |  |  |  | Amortized Cost |  | % of Loans |  |  |  |  |
Loans secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate |  |  |  |  | $ | 1,093 |  |  | 0.04 | % |  |  |  |  |  | $ | — |  |  | — | % |  |  |  |  |
Construction/land/land development |  |  |  |  | 4,138 |  |  | 0.67 |  |  |  |  |  |  | — |  |  | — |  |  |  |  |  |
Residential real estate |  |  |  |  | 1,707 |  |  | 0.09 |  |  |  |  |  |  | 100 |  |  | — |  |  |  |  |  |
Total real estate |  |  |  |  | 6,938 |  |  | 0.14 |  |  |  |  |  |  | 100 |  |  | — |  |  |  |  |  |
Commercial and industrial |  |  |  |  | 29,052 |  |  | 1.51 |  |  |  |  |  |  | 53 |  |  | — |  |  |  |  |  |
Consumer |  |  |  |  | 10 |  |  | 0.05 |  |  |  |  |  |  | — |  |  | — |  |  |  |  |  |
Total |  |  |  |  | $ | 36,000 |  |  | 0.48 |  |  |  |  |  |  | $ | 153 |  |  | — |  |  |  |  |  |
|  |  |  |  | Nine Months Ended September 30, 2024 |
|  |  | Term Extension |  |  |  |  |  | Combination: Term Extension and Interest Rate Reduction |  | Other-Than-Insignificant Payment Delay |
(Dollars in thousands) |  |  |  |  | Amortized Cost |  | % of Loans |  |  |  |  |  |  |  |  |  | Amortized Cost |  | % of Loans |  | Amortized Cost |  | % of Loans |
Loans secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate |  |  |  |  | $ | 257 |  |  | 0.01 | % |  |  |  |  |  |  |  |  |  | $ | — |  |  | — | % |  | $ | — |  |  | — | % |
Construction/land/land development |  |  |  |  | 346 |  |  | 0.03 |  |  |  |  |  |  |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |
Residential real estate |  |  |  |  | 1,998 |  |  | 0.11 |  |  |  |  |  |  |  |  |  |  | 132 |  |  | 0.01 |  |  | — |  |  | — |  |
Total real estate |  |  |  |  | 2,601 |  |  | 0.05 |  |  |  |  |  |  |  |  |  |  | 132 |  |  | — |  |  | — |  |  | — |  |
Commercial and industrial(1) |  |  |  |  | 15,331 |  |  | 0.74 |  |  |  |  |  |  |  |  |  |  | — |  |  | — |  |  | 35 |  |  | — |  |
Consumer |  |  |  |  | — |  |  | — |  |  |  |  |  |  |  |  |  |  | 4 |  |  | 0.02 |  |  |  |  | — |  |
Total |  |  |  |  | $ | 17,932 |  |  | 0.23 |  |  |  |  |  |  |  |  |  |  | $ | 136 |  |  | — |  |  | $ | 35 |  |  | — |  |
____________________________ (1)Does not include the loans impacted by the questioned activity as a result of not meeting the modification criteria as described in the Accounting Standards Codification 310-10-50-36, “Modifications”. |
The following tables describe the financial effects of the modifications made to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2025 and 2024.
|  |  | Three Months Ended September 30, 2025
|  |  | Term Extension |  | Other-Than-Insignificant Payment Delay |  |
Commercial real estate |  |  | Added a weighted average 19.0 months to the life of the modified loans |  | N/A |  |
Construction/land/land development |  |  | Added a weighted average 2.2 months to the life of the modified loans |  | N/A |  |
Residential real estate |  |  | Added a weighted average 11.6 months to the life of the modified loans |  | Delayed payment of weighted average 6.0 months |  |
Commercial and industrial |  |  | Added a weighted average 5.0 months to the life of the modified loans |  | Delayed payment of weighted average 2.0 months |  |
Consumer |  |  | Added a weighted average 1.2 months to the life of the modified loans |  | N/A |  |
|  |  | Three Months Ended September 30, 2024
|  |  | Term Extension |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate |  |  | Added a weighted average 29.0 months to the life of the modified loans |  |  |  |  |  |  |  |  |  |  |  |
Construction/land/land development |  |  | Added a weighted average 4.1 months to the life of the modified loans |  |  |  |  |  |  |  |  |  |  |  |
Residential real estate |  |  | Added a weighted average 8.7 months to the life of the modified loans |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial(1) |  |  | Added a weighted average 4.4 months to the life of the modified loans |  |  |  |  |  |  |  |  |  |  |  |
____________________________ (1)Does not include the loans impacted by the questioned activity as a result of not meeting the modification criteria as described in the Accounting Standards Codification 310-10-50-36, “Modifications”. |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Nine Months Ended September 30, 2025
|  |  | Term Extension |  | Other-Than-Insignificant Payment Delay
Commercial real estate |  |  | Added a weighted average 20.9 months to the life of the modified loans |  | N/A
Construction/land/land development |  |  | Added a weighted average 2.4 months to the life of the modified loans |  | N/A
Residential real estate |  |  | Added a weighted average 16.4 months to the life of the modified loans |  | Delayed payment of weighted average 5.3 months
Commercial and industrial |  |  | Added a weighted average 8.7 months to the life of the modified loans |  | Delayed payment of weighted average 3.0 months
Consumer |  |  | Added a weighted average 1.2 months to the life of the modified loans |  | N/A
| Nine Months Ended September 30, 2024
| Interest Rate Reduction |  | Term Extension |  | Other-Than-Insignificant Payment Delay
Commercial real estate | N/A |  | Added a weighted average 32.0 months to the life of the modified loans |  | N/A
Construction/land/land development | N/A |  | Added a weighted average 6.6 months to the life of the modified loans |  | N/A
Residential real estate | Reduced weighted average contractual interest rate from 9.0% to 8.0% |  | Added a weighted average 10.4 months to the life of the modified loans |  | N/A
Commercial and industrial(1) | N/A |  | Added a weighted average 5.9 months to the life of the modified loans |  | Delayed payment of weighted average 2.0 months
Consumer | Reduced weighted average contractual interest rate from 9.5% to 6.0% |  | Added a weighted average 5.0 months to the life of the modified loans |  | N/A
____________________________ (1)Does not include the loans impacted by the questioned activity as a result of not meeting the modification criteria as described in the Accounting Standards Codification 310-10-50-36, “Modifications”.
The following table depicts the performance of loans that have been modified during the last twelve months ended September 30, 2025 and 2024.
| Payment Status (Amortized Cost Basis) |  |  |
| September 30, 2025 |
(Dollars in thousands) | Current |  | 30-89 Days Past Due |  | 90 Days or More Past Due |  |  |
Loans secured by real estate: |  |  |  |  |  |  |  |
Commercial real estate | $ | 2,516 |  |  | $ | 110 |  |  | $ | — |  |  |  |
Construction/land/land development | 4,138 |  |  | — |  |  | 206 |  |  |  |
Residential real estate | 2,243 |  |  | — |  |  | — |  |  |  |
Total real estate | 8,897 |  |  | 110 |  |  | 206 |  |  |  |
Commercial and industrial | 26,582 |  |  | 1,744 |  |  | 2,897 |  |  |  |
Consumer | 10 |  |  | — |  |  | — |  |  |  |
Total LHFI | $ | 35,489 |  |  | $ | 1,854 |  |  | $ | 3,103 |  |  |  |
| Payment Status (Amortized Cost Basis) |  |  |
| September 30, 2024 |
(Dollars in thousands) | Current |  | 30-89 Days Past Due |  | 90 Days or More Past Due |  |  |
Loans secured by real estate: |  |  |  |  |  |  |  |
Commercial real estate | $ | 272 |  |  | $ | 10 |  |  | $ | — |  |  |  |
Construction/land/land development | 452 |  |  | — |  |  | — |  |  |  |
Residential real estate | 936 |  |  | 1,485 |  |  | 115 |  |  |  |
Total real estate | 1,660 |  |  | 1,495 |  |  | 115 |  |  |  |
Commercial and industrial(1) | 12,865 |  |  | 618 |  |  | 2,007 |  |  |  |
Consumer | 4 |  |  | — |  |  | — |  |  |  |
Total LHFI | $ | 14,529 |  |  | $ | 2,113 |  |  | $ | 2,122 |  |  |  |
____________________________ (1)Does not include the loans impacted by the questioned activity as a result of not meeting the modification criteria as described in the Accounting Standards Codification 310-10-50-36, “Modifications”. |  |  |
At September 30, 2025, and December 31, 2024, the Company had $52,000 and $35,000 of funding commitments for loans in which the terms were modified as a result of the borrowers experiencing financial difficulty, respectively. The tables below provides the details of loans to borrowers experiencing financial difficulty that were modified within the last twelve months and defaulted during the three or nine months ended September 30, 2025.
|  |  | Defaults During the Three Months Ended September 30, 2025 |  |  |  |  |
|  |  | Term Extension |  |  |  |  |
(Dollars in thousands) |  |  | Amortized Cost |  | Default Amount |  |  |  |  |
Loans secured by real estate: |  |  |  |  |  |  |  |  |  |
Commercial real estate |  |  | $ | — |  |  | $ | — |  |  |  |  |  |
Construction/land/land development |  |  | 206 |  |  | 206 |  |  |  |  |  |
Residential real estate |  |  | — |  |  | — |  |  |  |  |  |
Total real estate |  |  | 206 |  |  | 206 |  |  |  |  |  |
Commercial and industrial |  |  | 2,897 |  |  | 4,041 |  |  |  |  |  |
Total |  |  | $ | 3,103 |  |  | $ | 4,247 |  |  |  |  |  |
|  |  | Defaults During the Nine Months Ended September 30, 2025 |  |  |  |  |
|  |  | Term Extension |  |  |  |  |
(Dollars in thousands) |  |  | Amortized Cost |  | Default Amount |  |  |  |  |
Loans secured by real estate: |  |  |  |  |  |  |  |  |  |
Commercial real estate |  |  | $ | — |  |  | $ | — |  |  |  |  |  |
Construction/land/land development |  |  | 206 |  |  | 206 |  |  |  |  |  |
Residential real estate |  |  | — |  |  | 100 |  |  |  |  |  |
Total real estate |  |  | 206 |  |  | 306 |  |  |  |  |  |
Commercial and industrial |  |  | 2,897 |  |  | 6,680 |  |  |  |  |  |
Total |  |  | $ | 3,103 |  |  | $ | 6,986 |  |  |  |  |  |
The table below provides the details of loans to borrowers experiencing financial difficulty that were modified within the last twelve months and defaulted during the three and nine months ended September 30, 2024.
| At or For The Nine Months Ended September 30, 2024 |  |
| Term Extension |  |
(Dollars in thousands) | Amortized Cost |  | Default Amount |  |
Residential real estate | $ | 115 |  |  | $ | 115 |  |  |
Commercial and industrial(1) | 2,007 |  |  | 9,453 |  |  |
Total | $ | 2,122 |  |  | $ | 9,568 |  |  |
____________________________ (1)Does not include the loans impacted by the questioned activity as a result of not meeting the modification criteria as described in the Accounting Standards Codification 310-10-50-36, “Modifications”.
A payment default is defined as a loan that was 90 or more days past due. The Company monitors the performance of modified loans on an ongoing basis. In the event of subsequent default, the ALCL is assessed on the basis of an individual evaluation of each loan. The modifications made during the periods presented did not significantly impact the Company’s determination of the allowance for credit losses.

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