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Loans | 9 Months Ended
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Sep. 30, 2025
Receivables [Abstract] |
Loans | Loans The table below identifies the Company’s loan portfolio segments and classes.
Portfolio Segment |  | Class of Financing Receivable
Commercial |  | Owner occupied real estate
|  | Non-owner occupied real estate
|  | Residential spec homes
|  | Development & spec land
|  | Commercial and industrial
Residential real estate |  | Residential mortgage
|  | Residential construction
Consumer |  | Direct installment
|  | Indirect installment
|  | Home equity
Portfolio segment is defined as a level at which an entity develops and documents a systematic methodology to determine its allowance for credit losses. Class of financing receivable is defined as a group of financing receivables determined on the basis of both of the following, 1) risk characteristics of the financing receivable, and 2) an entity’s method for monitoring and assessing credit risk. Generally, the Bank does not move loans from a revolving loan to a term loan other than construction loans. Construction loans are reviewed and rewritten prior to being originated as a term loan. The following table presents outstanding loans held for investment by portfolio class, as of September 30, 2025 and December 31, 2024:
| September 30, 2025 |  | December 31, 2024
Commercial |  |  |
Owner occupied real estate | $ | 709,374 |  |  | $ | 667,165 |
Non–owner occupied real estate | 1,610,937 |  |  | 1,501,456 |
Residential spec homes | 16,783 |  |  | 15,611 |
Development & spec land | 29,862 |  |  | 18,627 |
Commercial and industrial | 989,609 |  |  | 875,297 |
Total commercial | 3,356,565 |  |  | 3,078,156 |
Real estate |  |  |
Residential mortgage | 757,342 |  |  | 783,961 |
Residential construction | 26,508 |  |  | 18,948 |
Total real estate | 783,850 |  |  | 802,909 |
Consumer |  |  |
Direct installment | 82,377 |  |  | 97,190 |
Indirect installment | 23,341 |  |  | 303,901 |
Home equity | 577,536 |  |  | 564,884 |
Total consumer | 683,254 |  |  | 965,975 |
Total loans | 4,823,669 |  |  | 4,847,040 |
Allowance for credit losses | (50,178) |  |  | (51,980) |
Net loans | $ | 4,773,491 |  |  | $ | 4,795,060 |
Total loans include net unearned discounts and deferred loan costs of $7.2 million at September 30, 2025 and $14.9 million at December 31, 2024, respectively. Non–performing Loans The following table presents non–accrual loans and loans past due over 90 days still on accrual by class of loans at September 30, 2025:
| September 30, 2025
| Total Non-accrual |  | Loans Past Due Over 90 Days Still Accruing |  | Non-accruing Loans with no Allowance for Credit Losses
Commercial |  |  |  |  |
Owner occupied real estate | $ | 5,171 |  |  | $ | — |  |  | $ | 1,363 |
Non–owner occupied real estate | 3,258 |  |  | — |  |  | 139 |
Residential spec homes | — |  |  | — |  |  | — |
Development & spec land | 510 |  |  | — |  |  | — |
Commercial and industrial | 3,364 |  |  | — |  |  | 1,060 |
Total commercial | 12,303 |  |  | — |  |  | 2,562 |
Real estate |  |  |  |  |
Residential mortgage | 9,256 |  |  | — |  |  | — |
Residential construction | — |  |  | — |  |  | — |
Total real estate | 9,256 |  |  | — |  |  | — |
Consumer |  |  |  |  |
Direct installment | 604 |  |  | 259 |  |  | — |
Indirect installment | 1,159 |  |  | 173 |  |  | — |
Home equity | 6,036 |  |  | 1,176 |  |  | — |
Total consumer | 7,799 |  |  | 1,608 |  |  | — |
Total | $ | 29,358 |  |  | $ | 1,608 |  |  | $ | 2,562 |
The following table presents non–accrual loans and loans past due over 90 days still on accrual by class of loan at December 31, 2024:
| December 31, 2024
| Total Non-accrual |  | Loans Past Due Over 90 Days Still Accruing |  | Non-accruing Loans with no Allowance for Credit Losses
Commercial |  |  |  |  |
Owner occupied real estate | $ | 2,448 |  |  | $ | — |  |  | $ | 1,419 |
Non–owner occupied real estate | 444 |  |  | — |  |  | 444 |
Residential spec homes | — |  |  | — |  |  | — |
Development & spec land | 534 |  |  | — |  |  | 534 |
Commercial and industrial | 2,232 |  |  | — |  |  | 1,239 |
Total commercial | 5,658 |  |  | — |  |  | 3,636 |
Real estate |  |  |  |  |
Residential mortgage | 11,215 |  |  | — |  |  | — |
Residential construction | — |  |  | — |  |  | — |
Total real estate | 11,215 |  |  | — |  |  | — |
Consumer |  |  |  |  |
Direct installment | 338 |  |  | 128 |  |  | — |
Indirect installment | 1,542 |  |  | 358 |  |  | — |
Home equity | 7,039 |  |  | 680 |  |  | — |
Total consumer | 8,919 |  |  | 1,166 |  |  | — |
Total | $ | 25,792 |  |  | $ | 1,166 |  |  | $ | 3,636 |
There was no interest income recognized on non-accrual loans during the three and nine months periods ended September 30, 2025 and 2024, respectively, while the loans were in non-accrual status. The amount of accrued interest receivable written off by the Company by reversing interest income was not material during the three and nine months periods ended September 30, 2025 and 2024, respectively. The following table presents the payment status by class of loan at September 30, 2025:
| September 30, 2025
| Current |  | 30-59 Days Past Due |  | 60-89 Days Past Due |  | 90 Days or Greater Past Due |  | Total Past Due |  | Total Loans
Commercial |  |  |  |  |  |  |  |  |  |  |
Owner occupied real estate | $ | 704,038 |  |  | $ | 44 |  |  | $ | 3,973 |  |  | $ | 1,318 |  |  | $ | 5,335 |  |  | $ | 709,373 |
Non–owner occupied real estate | 1,605,731 |  |  | 2,357 |  |  | — |  |  | 2,849 |  |  | 5,206 |  |  | 1,610,937 |
Residential spec homes | 16,783 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 16,783 |
Development & spec land | 29,352 |  |  | 510 |  |  | — |  |  | — |  |  | 510 |  |  | 29,862 |
Commercial and industrial | 982,095 |  |  | 2,858 |  |  | 2,095 |  |  | 2,561 |  |  | 7,514 |  |  | 989,609 |
Total commercial | 3,337,999 |  |  | 5,769 |  |  | 6,068 |  |  | 6,728 |  |  | 18,565 |  |  | 3,356,564 |
Real estate |  |  |  |  |  |  |  |  |  |  |
Residential mortgage | 747,424 |  |  | 79 |  |  | 3,827 |  |  | 6,012 |  |  | 9,918 |  |  | 757,342 |
Residential construction | 26,508 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 26,508 |
Total real estate | 773,932 |  |  | 79 |  |  | 3,827 |  |  | 6,012 |  |  | 9,918 |  |  | 783,850 |
Consumer |  |  |  |  |  |  |  |  |  |  |
Direct installment | 78,619 |  |  | 2,860 |  |  | 215 |  |  | 684 |  |  | 3,759 |  |  | 82,378 |
Indirect installment | 19,052 |  |  | 3,038 |  |  | 543 |  |  | 708 |  |  | 4,289 |  |  | 23,341 |
Home equity | 563,614 |  |  | 6,625 |  |  | 1,998 |  |  | 5,299 |  |  | 13,922 |  |  | 577,536 |
Total consumer | 661,285 |  |  | 12,523 |  |  | 2,756 |  |  | 6,691 |  |  | 21,970 |  |  | 683,255 |
Total | $ | 4,773,216 |  |  | $ | 18,371 |  |  | $ | 12,651 |  |  | $ | 19,431 |  |  | $ | 50,453 |  |  | $ | 4,823,669 |
The following table presents the payment status by class of loan at December 31, 2024:
| December 31, 2024
| Current |  | 30-59 Days Past Due |  | 60-89 Days Past Due |  | 90 Days or Greater Past Due |  | Total Past Due |  | Total Loans
Commercial |  |  |  |  |  |  |  |  |  |  |
Owner occupied real estate | $ | 665,875 |  |  | $ | 1,195 |  |  | $ | — |  |  | $ | 95 |  |  | $ | 1,290 |  |  | $ | 667,165 |
Non–owner occupied real estate | 1,500,229 |  |  | 931 |  |  | — |  |  | 296 |  |  | 1,227 |  |  | 1,501,456 |
Residential spec homes | 15,611 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 15,611 |
Development & spec land | 18,627 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 18,627 |
Commercial and industrial | 872,893 |  |  | 2,155 |  |  | 70 |  |  | 179 |  |  | 2,404 |  |  | 875,297 |
Total commercial | 3,073,235 |  |  | 4,281 |  |  | 70 |  |  | 570 |  |  | 4,921 |  |  | 3,078,156 |
Real estate |  |  |  |  |  |  |  |  |  |  |
Residential mortgage | 773,214 |  |  | — |  |  | 4,163 |  |  | 6,584 |  |  | 10,747 |  |  | 783,961 |
Residential construction | 18,948 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 18,948 |
Total real estate | 792,162 |  |  | — |  |  | 4,163 |  |  | 6,584 |  |  | 10,747 |  |  | 802,909 |
Consumer |  |  |  |  |  |  |  |  |  |  |
Direct installment | 95,337 |  |  | 1,325 |  |  | 181 |  |  | 347 |  |  | 1,853 |  |  | 97,190 |
Indirect installment | 298,048 |  |  | 4,179 |  |  | 806 |  |  | 868 |  |  | 5,853 |  |  | 303,901 |
Home equity | 551,483 |  |  | 7,143 |  |  | 1,537 |  |  | 4,721 |  |  | 13,401 |  |  | 564,884 |
Total consumer | 944,868 |  |  | 12,647 |  |  | 2,524 |  |  | 5,936 |  |  | 21,107 |  |  | 965,975 |
Total | $ | 4,810,265 |  |  | $ | 16,928 |  |  | $ | 6,757 |  |  | $ | 13,090 |  |  | $ | 36,775 |  |  | $ | 4,847,040 |
The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified due date. Modified Loans The following tables detail the amortized cost at September 30, 2025 of loans that were modified to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2025 and the amortized cost at September 30, 2024, of loans that were modified to borrowers experiencing financial difficulty during the three and nine months periods ended September 30, 2024:
|  | Three Months Ended September 30, 2025
|  |  | Term Extension |  | Interest Rate Reduction |  | Other-Than-Insignificant Payment Delay |  | Term Extension and Interest Rate Reduction |  |  |  | Total |  | % of Loans Held for Investment
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied real estate |  |  | $ | 550 |  |  | $ | — |  |  | $ | 3,007 |  |  | $ | — |  |  |  |  | $ | 3,557 |  |  | 0.51 | %
Non-owner occupied real estate |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  | — |  |  | — | %
Development spec & land |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  | — |  |  | — | %
Commercial and industrial |  |  | 757 |  |  | — |  |  | 246 |  |  | — |  |  |  |  | 1,003 |  |  | 0.10 | %
Total |  |  | $ | 1,307 |  |  | $ | — |  |  | $ | 3,253 |  |  | $ | — |  |  |  |  | $ | 4,560 |  |  | 0.09 | %
|  |  | Nine Months Ended September 30, 2025
|  |  | Term Extension |  | Interest Rate Reduction |  | Other-Than-Insignificant Payment Delay |  | Term Extension and Interest Rate Reduction |  |  |  | Total |  | % of Loans Held for Investment
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied real estate |  |  | $ | 550 |  |  | $ | — |  |  | $ | 3,412 |  |  | $ | — |  |  |  |  | $ | 3,962 |  |  | 0.56 | %
Non-owner occupied real estate |  |  | 409 |  |  | — |  |  | — |  |  | — |  |  |  |  | 409 |  |  | 0.03 | %
Development spec & land |  |  | 510 |  |  | — |  |  | — |  |  | — |  |  |  |  | 510 |  |  | 1.74 | %
Commercial and industrial |  |  | 1,929 |  |  | — |  |  | 650 |  |  | 1,525 |  |  |  |  | 4,104 |  |  | 0.42 | %
Total |  |  | $ | 3,398 |  |  | $ | — |  |  | $ | 4,062 |  |  | $ | 1,525 |  |  |  |  | $ | 8,985 |  |  | 0.19 | %
|  | Three Months Ended September 30, 2024
|  |  | Term Extension |  | Interest Rate Reduction |  | Other-Than-Insignificant Payment Delay |  | Term Extension and Interest Rate Reduction |  |  |  | Total |  | % of Loans Held for Investment
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied real estate |  |  | $ | 2,038 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 2,038 |  |  | 0.32 | %
Non-owner occupied real estate |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  | — |  |  | — | %
Development spec & land |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  | — |  |  | — | %
Commercial and industrial |  |  | 1,111 |  |  | — |  |  | — |  |  | — |  |  |  |  | 1,111 |  |  | 0.14 | %
Total |  |  | $ | 3,149 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 3,149 |  |  | 0.07 | %
|  | Nine Months Ended September 30, 2024
|  |  | Term Extension |  | Interest Rate Reduction |  | Other-Than-Insignificant Payment Delay |  | Term Extension and Interest Rate Reduction |  |  |  | Total |  | % of Loans Held for Investment
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied real estate |  |  | $ | 3,986 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 3,986 |  |  | 0.63 | %
Non-owner occupied real estate |  |  | 1,720 |  |  | — |  |  | 651 |  |  | — |  |  |  |  | 2,371 |  |  | 0.17 | %
Development spec & land |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  | — |  |  | — | %
Commercial and industrial |  |  | 2,205 |  |  | — |  |  | — |  |  | 437 |  |  |  |  | 2,642 |  |  | 0.33 | %
Total |  |  | $ | 7,911 |  |  | $ | — |  |  | $ | 651 |  |  | $ | 437 |  |  |  |  | $ | 8,999 |  |  | 0.19 | %
The following tables summarize the financial impacts of loan modifications and payment deferrals, as applicable, during the three and nine months periods ended September 30, 2025 and 2024:
| Three Months Ended September 30, 2025
| Weighted Average Term Extension (In Months) |  | Weighted average interest rate reduction (In Percentage Terms) |  | Weighted Average Payment Delay (In Months) |  | Term Extension (In Months) & Rate Reduction (In Percentage Terms) |  |
Commercial |  |  |  |  |  |  |  |  |
Owner occupied real estate | 9 |  | — | % |  | 10 |  | 0 |  |
Non-owner occupied real estate | 0 |  | — | % |  | 0 |  | 0 |  |
Development spec & land | 0 |  | — | % |  | 0 |  | 0 |  |
Commercial and industrial | 7 |  | — | % |  | 1 |  | 0 |  |
| Nine Months Ended September 30, 2025
| Weighted Average Term Extension (In Months) |  | Weighted average interest rate reduction (Int Percentage Terms) |  | Weighted Average Payment Delay (In Months) |  |  |  | Term Extension (In Months) & Rate Reduction (In Percentage Terms)
Commercial |  |  |  |  |  |  |  |  |
Owner occupied real estate | 9 |  | — | % |  | 6 |  |  |  | 0
Non-owner occupied real estate | 12 |  | — | % |  | 0 |  |  |  | 0
Development spec & land | 12 |  | — | % |  | 0 |  |  |  | 0
Commercial and industrial | 9 |  | — | % |  | 6 |  |  |  | Weighted average term extension of 36 months & weighted average interest rate reduction of 1.73%
| Three Months Ended September 30, 2024
| Weighted Average Term Extension (In Months) |  | Weighted average interest rate reduction (In Percentage Terms) |  | Weighted Average Payment Delay (In Months) |  | Term Extension (In Months) & Rate Reduction (In Percentage Terms)
Commercial |  |  |  |  |  |  |
Owner occupied real estate | 6 |  | — | % |  | 0 |  | 0
Non-owner occupied real estate | 0 |  | — | % |  | 0 |  | 0
Development spec & land | 0 |  | — | % |  | 0 |  | 0
Commercial and industrial | 21 |  | — | % |  | 0 |  | Weighted average term extension of 0 months & Weighted average interest rate reduction of —%
| Nine Months Ended September 30, 2024
| Weighted Average Term Extension (In Months) |  | Weighted average interest rate reduction (Int Percentage Terms) |  | Weighted Average Payment Delay (In Months) |  |  | Term Extension (In Months) & Rate Reduction (In Percentage Terms)
Commercial |  |  |  |  |  |  |  |
Owner occupied real estate | 7 |  | — | % |  | 0 |  |  | 0
Non-owner occupied real estate | 15 |  | — | % |  | 5 |  |  | 0
Development spec & land | 0 |  | — | % |  | 0 |  |  | 0
Commercial and industrial | 15 |  | — | % |  | 0 |  |  | Weighted average term extension of 14 months & weighted average interest rate reduction of 2.03%
The financial impacts of the modifications did not significantly impact our determination of the allowance for credit losses during the periods presented above. The following table presents the amortized cost basis at September 30, 2025 of loans to borrowers experiencing financial difficulty that had been modified within the previous 12 months:
| September 30, 2025
| Current |  | 30-89 Days Past Due |  | 90 Days Past Due |  | Total
Commercial |  |  |  |  |  |  |
Owner occupied real estate | $ | 6,380 |  |  | $ | — |  |  | $ | — |  |  | $ | 6,380 |
Non-owner occupied real estate | — |  |  | 409 |  |  | — |  |  | 409 |
Development spec & land | — |  |  | 510 |  |  | — |  |  | 510 |
Commercial and industrial | 5,245 |  |  | — |  |  | — |  |  | 5,245 |
Total | $ | 11,625 |  |  | $ | 919 |  |  | $ | — |  |  | $ | 12,544 |
The following table presents the amortized cost basis at September 30, 2024 of loans to borrowers experiencing financial difficulty that had been modified within the previous 12 months:
| September 30, 2024
| Current |  | 30-89 Days Past Due |  | 90 Days Past Due |  | Total
Commercial |  |  |  |  |  |  |
Owner occupied real estate | $ | 3,986 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,986 |
Non-owner occupied real estate | 2,371 |  |  | — |  |  | — |  |  | 2,371 |
Development spec & land | — |  |  | — |  |  | — |  |  | — |
Commercial and industrial | 2,641 |  |  | — |  |  | — |  |  | 2,641 |
Total | $ | 8,998 |  |  | $ | — |  |  | $ | — |  |  | $ | 8,998 |
On an ongoing basis, we monitor the performance of all modified loans according to their modified terms. The amortized cost of modified loans that had a payment default during the three and nine months ended September 30, 2025, which were still in default at period end, and were within 12 months or less of being modified was $0.9 and $3.7 million respectively. For the three and nine months ended September 30, 2024, the Company had $— and $1.3 million in payment defaults, respectively. For purposes of this disclosure, the Company considers “default” to mean 30 days or more past due of contractual interest or principal. Collateral Dependent Financial Assets A collateral dependent financial loan relies solely on the operation or sale of the collateral for repayment. In evaluating the overall risk associated with the loan, the Company considers character, overall financial condition and resources, and payment record of the borrower; the prospects for support from any financially responsible guarantors; and the nature and degree of protection provided by the cash flow and value of any underlying collateral. However, as other sources of repayment become inadequate over time, the significance of the collateral's value increases and the loan may become collateral dependent. The tables below present the amortized cost basis and allowance for credit losses (“ACL”) allocated for collateral dependent loans in accordance with ASC 326, which are individually evaluated to determine expected credit losses, at September 30, 2025 and December 31, 2024.
| September 30, 2025
| Real Estate |  | Accounts Receivable/ Equipment |  | Other |  | Total |  | ACL Allocation
Commercial |  |  |  |  |  |  |  |  |
Owner occupied real estate | $ | 5,171 |  |  | $ | — |  |  | $ | — |  |  | $ | 5,171 |  |  | $ | 115 |
Non–owner occupied real estate | 3,258 |  |  | — |  |  | — |  |  | 3,258 |  |  | 214 |
Development & spec land | 510 |  |  | — |  |  | — |  |  | 510 |  |  | — |
Commercial and industrial | 1,005 |  |  | 2,359 |  |  | — |  |  | 3,364 |  |  | 529 |
Total commercial | 9,944 |  |  | 2,359 |  |  | — |  |  | 12,303 |  |  | 858 |
Total collateral dependent loans (1) | $ | 9,944 |  |  | $ | 2,359 |  |  | $ | — |  |  | $ | 12,303 |  |  | $ | 858 |
(1) Collateral dependent loans had a collateral fair value of $8.7 million at September 30, 2025
| December 31, 2024
| Real Estate |  | Accounts Receivable/ Equipment |  | Other |  | Total |  | ACL Allocation
Commercial |  |  |  |  |  |  |  |  |
Owner occupied real estate | $ | 2,448 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,448 |  |  | $ | 224 |
Non–owner occupied real estate | 444 |  |  | — |  |  | — |  |  | 444 |  |  | — |
Development & spec land | 534 |  |  | — |  |  | — |  |  | 534 |  |  | — |
Commercial and industrial | 1,756 |  |  | 476 |  |  | — |  |  | 2,232 |  |  | 731 |
Total commercial | 5,182 |  |  | 476 |  |  | — |  |  | 5,658 |  |  | 955 |
Total collateral dependent loans (1) | $ | 5,182 |  |  | $ | 476 |  |  | $ | — |  |  | $ | 5,658 |  |  | $ | 955 |
(1) Collateral dependent loans had a collateral fair value of $3.4 million at December 31, 2024
As of September 30, 2025, the Company had a carrying value of $1.5 million of repossessed assets. As of September 30, 2025, the Company had a recorded net investment of $0.3 million o f consumer mortgage loans in which foreclosure proceedings have commenced. Repossessed assets are a component of other assets within the condensed consolidated balance sheet. Credit Quality Indicators Horizon Bank’s processes for determining credit quality differ slightly depending on whether a new loan or a renewed loan is being underwritten, or whether an existing loan is being re–evaluated for credit quality. The latter usually occurs upon receipt of current financial information or other pertinent data that would trigger a change in the credit quality grade. •For new and renewed commercial loans, the Bank’s Credit Department, which acts independently of the loan officer, assigns the credit quality grade to the loan. Loan grades for loans with an aggregate credit exposure that exceeds the authorities in the respective regions (ranging from $3,000,000 to $6,000,000) are validated by the Loan Committee, which is chaired by the Chief Commercial Banking Officer (“CCBO”). •Commercial loan officers are responsible for reviewing their loan portfolios and promptly assessing any adverse change in credit quality and revising the risk rating appropriately. When circumstances warrant a change in the credit quality grade, loan officers are required to notify the Credit Department of the change in the credit quality grade. Downgrades are accepted immediately, however, lenders must present their factual information to the Credit Department when recommending an upgrade. Downgrades to impaired status require the concurrence of the CCBO and the Senior Workout Loan Manager. •The CCBO, or a designee, meets periodically with loan officers to discuss the status of past due loans and classified loans. These meetings are also designed to give the loan officers an opportunity to identify an existing loan that should be downgraded to a classified grade. •Monthly, senior management meets as members of the Watch Committee, which reviews all of the past due, classified, and impaired loans and the relative trends of these assets. This committee also reviews the actions taken by management regarding foreclosure mitigation, loan extensions, loan modifications, other real estate owned and personal property repossessions. The information reviewed in this meeting acts as a precursor for developing management’s analysis of the adequacy of the Allowance for Credit Losses on Loans and Leases. For residential real estate and consumer loans, Horizon uses a grading system based on delinquency. Loans that are 90 days or more past due, on non–accrual, or are classified as modified loans are graded “Substandard.” After being 90 to 120 days delinquent a loan is charged off unless it is well secured and in the process of collection. If the latter case exists, the loan is placed on non–accrual. Occasionally a mortgage loan may be graded as “Special Mention.” When this situation arises, it is because the characteristics of the loan and the borrower fit the definition of a Risk Grade 5 described below, which is normally used for grading commercial loans. Loans not graded Substandard are considered Pass. Horizon Bank employs a nine–grade rating system to determine the credit quality of commercial loans. The first five grades represent acceptable quality, and the last four grades mirror the criticized and classified grades used by the bank regulatory agencies (special mention, substandard, doubtful, and loss). The loan grade definitions are detailed below. Risk Grade 1: Excellent (Pass) Loans secured by liquid collateral, such as certificates of deposit, reputable bank letters of credit, or other cash equivalents or loans to any publicly held company with a current long–term debt rating of A or better and meeting defined key financial metric ranges. Risk Grade 2: Good (Pass) Loans to businesses that have strong financial statements containing an unqualified opinion from a CPA firm and at least three years consecutive years of profits; loans supported by unaudited financial statements containing strong balance sheets, five consecutive years of profits, a five year satisfactory relationship with the Bank, and key balance sheet and income statement trends that are either stable or positive; loans secured by publicly traded marketable securities with required margins where there is no impediment to liquidation; loans to individuals backed by liquid personal assets and unblemished credit histories; or loans to publicly held companies with current long–term debt ratings of Baa or better and meeting defined key financial metric ranges. Risk Grade 3: Satisfactory (Pass) Loans supported by financial statements (audited or unaudited) that indicate average or slightly below average risk and having some deficiency or vulnerability to changing economic conditions; loans with some weakness but offsetting features of other support are readily available; loans that are meeting the terms of repayment, but which may be susceptible to deterioration if adverse factors are encountered and meeting defined key financial metric ranges. Loans may be graded Satisfactory when there is no recent information on which to base a current risk evaluation and the following conditions apply: •At inception, the loan was properly underwritten, did not possess an unwarranted level of credit risk, and the loan met the above criteria for a risk grade of Excellent, Good, or Satisfactory; •At inception, the loan was secured with collateral possessing a loan value adequate to protect the Bank from loss. •The loan has exhibited two or more years of satisfactory repayment with a reasonable reduction of the principal balance. •During the period that the loan has been outstanding, there has been no evidence of any credit weakness. Some examples of weakness include slow payment, lack of cooperation by the borrower, breach of loan covenants, or the borrower is in an industry known to be experiencing problems. If any of these credit weaknesses is observed, a lower risk grade may be warranted. Risk Grade 4: Satisfactory/Monitored Loans in this category are considered to be of acceptable credit quality, but contain greater credit risk than Satisfactory rated loans and meet defined key financial metric ranges. Borrower displays acceptable liquidity, leverage, and earnings performance within the Bank’s minimum underwriting guidelines. The level of risk is acceptable but conditioned on the proper level of loan officer supervision. Loans that normally fall into this grade include acquisition, construction and development loans and income producing properties that have not reached stabilization. Risk Grade 4W: Management Watch Loans in this category are considered to be of acceptable quality and meet defined key financial metric ranges, but with above normal risk. Borrower displays potential indicators of weakness in the primary source of repayment resulting in a higher reliance on secondary sources of repayment. Balance sheet may exhibit weak liquidity and/or high leverage. There is inconsistent earnings performance without the ability to sustain adverse economic conditions. Borrower may be operating in a declining industry or the property type, as for a commercial real estate loan, may be high risk or in decline. These loans require an increased level of loan officer supervision and monitoring to assure that any deterioration is addressed in a timely fashion. Commercial construction loans are graded as 4W Management Watch until the projects are completed and stabilized. Risk Grade 5: Special Mention Loans which possess some temporary (normally less than one year) credit deficiency or potential weakness which deserves close attention. Such loans pose an unwarranted financial risk that, if not corrected, could weaken the loan by adversely impacting the future repayment ability of the borrower. The key distinctions of a Special Mention classification are that (1) it is indicative of an unwarranted level of risk and (2) weaknesses are considered “potential,” not “defined,” impairments to the primary source of repayment. These loans may be to borrowers with adverse trends in financial performance, collateral value and/or marketability, or balance sheet strength and must meet defined key financial metric ranges. Risk Grade 6: Substandard One or more of the following characteristics may be exhibited in loans classified Substandard: •Loans which possess a defined credit weakness. The likelihood that a loan will be paid from the primary source of repayment is uncertain. Financial deterioration is under way and very close attention is warranted to ensure that the loan is collected without loss. •Loans are inadequately protected by the current net worth and paying capacity of the obligor. •The primary source of repayment is gone, and the Bank is forced to rely on a secondary source of repayment, such as collateral liquidation or guarantees. •Loans have a distinct possibility that the Bank will sustain some loss if deficiencies are not corrected. •Unusual courses of action are needed to maintain a high probability of repayment. •The borrower is not generating enough cash flow to repay loan principal; however, it continues to make interest payments. •The lender is forced into a subordinated or unsecured position due to flaws in documentation. •Loans have been restructured so that payment schedules, terms, and collateral represent concessions to the borrower when compared to the normal loan terms. •The lender is seriously contemplating foreclosure or legal action due to the apparent deterioration in the loan. •There is a significant deterioration in market conditions to which the borrower is highly vulnerable. •The borrower meets defined key financial metric ranges. Risk Grade 7: Doubtful One or more of the following characteristics may be present in loans classified Doubtful: •Loans have all of the weaknesses of those classified as Substandard. However, based on existing conditions, these weaknesses make full collection of principal highly improbable. •The primary source of repayment is gone, and there is considerable doubt as to the quality of the secondary source of repayment. •The possibility of loss is high but because of certain important pending factors which may strengthen the loan, loss classification is deferred until the exact status of repayment is known. •The borrower meets defined key financial metric ranges. Risk Grade 8: Loss Loans are considered uncollectible and of such little value that continuing to carry them as assets is not feasible. Loans will be classified Loss when it is neither practical nor desirable to defer writing off or reserving all or a portion of a basically worthless asset, even though partial recovery may be possible at some time in the future. The following tables present loans by credit grades and origination year at September 30, 2025.
September 30, 2025 |  | 2025 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | Prior |  | Revolving Term Loans |  | Revolving Loans |  | Total
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 89,674 |  |  | $ | 78,616 |  |  | $ | 84,470 |  |  | $ | 82,654 |  |  | $ | 63,771 |  |  | $ | 187,836 |  |  | $ | 80,366 |  |  | $ | 13,251 |  |  | $ | 680,638 |
Special Mention |  | — |  |  | 1,030 |  |  | — |  |  | — |  |  | 1,391 |  |  | 5,335 |  |  | 2,357 |  |  | 100 |  |  | 10,213 |
Substandard |  | — |  |  | 3,206 |  |  | 9,449 |  |  | 2,728 |  |  | — |  |  | 2,590 |  |  | — |  |  | 550 |  |  | 18,523 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total owner occupied real estate |  | $ | 89,674 |  |  | $ | 82,852 |  |  | $ | 93,919 |  |  | $ | 85,382 |  |  | $ | 65,162 |  |  | $ | 195,761 |  |  | $ | 82,723 |  |  | $ | 13,901 |  |  | $ | 709,374 |
Gross charge-offs during period |  | $ | 109 |  |  | $ | 257 |  |  | $ | — |  |  | $ | 50 |  |  | $ | — |  |  | $ | 22 |  |  | $ | 33 |  |  | $ | — |  |  | $ | 471 |
Non–owner occupied real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 129,841 |  |  | $ | 185,379 |  |  | $ | 125,563 |  |  | $ | 233,754 |  |  | $ | 149,076 |  |  | $ | 423,758 |  |  | $ | 307,194 |  |  | $ | 14,125 |  |  | $ | 1,568,690 |
Special Mention |  | 490 |  |  | — |  |  | 1,312 |  |  | 28,391 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 30,193 |
Substandard |  | — |  |  | 2,181 |  |  | 3,908 |  |  | 620 |  |  | — |  |  | 5,277 |  |  | 68 |  |  | — |  |  | 12,054 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total non–owner occupied real estate |  | $ | 130,331 |  |  | $ | 187,560 |  |  | $ | 130,783 |  |  | $ | 262,765 |  |  | $ | 149,076 |  |  | $ | 429,035 |  |  | $ | 307,262 |  |  | $ | 14,125 |  |  | $ | 1,610,937 |
Gross charge-offs during period |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Residential spec homes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 2,173 |  |  | $ | 301 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 8,895 |  |  | $ | 5,414 |  |  | $ | 16,783 |
Special Mention |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Substandard |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total residential spec homes |  | $ | 2,173 |  |  | $ | 301 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 8,895 |  |  | $ | 5,414 |  |  | $ | 16,783 |
Gross charge-offs during period |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Development & spec land |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 3,196 |  |  | $ | 817 |  |  | $ | 4,026 |  |  | $ | 757 |  |  | $ | 1,118 |  |  | $ | 2,043 |  |  | $ | 17,395 |  |  | $ | — |  |  | $ | 29,352 |
Special Mention |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Substandard |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 510 |  |  | — |  |  | 510 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total development & spec land |  | $ | 3,196 |  |  | $ | 817 |  |  | $ | 4,026 |  |  | $ | 757 |  |  | $ | 1,118 |  |  | $ | 2,043 |  |  | $ | 17,905 |  |  | $ | — |  |  | $ | 29,862 |
Gross charge-offs during period |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial and industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 232,182 |  |  | $ | 207,007 |  |  | $ | 81,826 |  |  | $ | 109,494 |  |  | $ | 57,518 |  |  | $ | 50,986 |  |  | $ | 47,224 |  |  | $ | 163,815 |  |  | $ | 950,052 |
Special Mention |  | 1,451 |  |  | 1,768 |  |  | 442 |  |  | 557 |  |  | 33 |  |  | 331 |  |  | 11,072 |  |  | 10,417 |  |  | 26,071 |
Substandard |  | 1,904 |  |  | 1,705 |  |  | 4,473 |  |  | 146 |  |  | 49 |  |  | 1,687 |  |  | 1,064 |  |  | 2,458 |  |  | 13,486 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total commercial and industrial |  | $ | 235,537 |  |  | $ | 210,480 |  |  | $ | 86,741 |  |  | $ | 110,197 |  |  | $ | 57,600 |  |  | $ | 53,004 |  |  | $ | 59,360 |  |  | $ | 176,690 |  |  | $ | 989,609 |
Gross charge-offs during period |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Total commercial |  | $ | 460,911 |  |  | $ | 482,010 |  |  | $ | 315,469 |  |  | $ | 459,101 |  |  | $ | 272,956 |  |  | $ | 679,843 |  |  | $ | 476,145 |  |  | $ | 210,130 |  |  | $ | 3,356,565 |
September 30, 2025 |  | 2025 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | Prior |  | Revolving Term Loans |  | Revolving Loans |  | Total
Real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 50,764 |  |  | $ | 72,055 |  |  | $ | 114,833 |  |  | $ | 148,243 |  |  | $ | 130,929 |  |  | $ | 231,262 |  |  | $ | — |  |  | $ | — |  |  | $ | 748,086 |
Non–performing |  | — |  |  | 186 |  |  | 3,610 |  |  | 973 |  |  | 361 |  |  | 4,126 |  |  | — |  |  | — |  |  | 9,256 |
Total residential mortgage |  | $ | 50,764 |  |  | $ | 72,241 |  |  | $ | 118,443 |  |  | $ | 149,216 |  |  | $ | 131,290 |  |  | $ | 235,388 |  |  | $ | — |  |  | $ | — |  |  | $ | 757,342 |
Gross charge-offs during period |  | $ | — |  |  | $ | 135 |  |  | $ | 82 |  |  | $ | 188 |  |  | $ | 355 |  |  | $ | 83 |  |  | $ | — |  |  | $ | — |  |  | $ | 843 |
Residential construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 26,508 |  |  | $ | — |  |  | $ | 26,508 |
Non–performing |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total residential construction |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 26,508 |  |  | $ | — |  |  | $ | 26,508 |
Gross charge-offs during period |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Total real estate |  | $ | 50,764 |  |  | $ | 72,241 |  |  | $ | 118,443 |  |  | $ | 149,216 |  |  | $ | 131,290 |  |  | $ | 235,388 |  |  | $ | 26,508 |  |  | $ | — |  |  | $ | 783,850 |
September 30, 2025 |  | 2025 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | Prior |  | Revolving Term Loans |  | Revolving Loans |  | Total
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Direct installment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 7,651 |  |  | $ | 7,068 |  |  | $ | 50,076 |  |  | $ | 5,834 |  |  | $ | 3,612 |  |  | $ | 5,744 |  |  | $ | 11 |  |  | $ | 1,518 |  |  | $ | 81,514 |
Non–performing |  | — |  |  | 16 |  |  | 665 |  |  | 73 |  |  | 78 |  |  | 31 |  |  | — |  |  | — |  |  | 863 |
Total direct installment |  | $ | 7,651 |  |  | $ | 7,084 |  |  | $ | 50,741 |  |  | $ | 5,907 |  |  | $ | 3,690 |  |  | $ | 5,775 |  |  | $ | 11 |  |  | $ | 1,518 |  |  | $ | 82,377 |
Gross charge-offs during period |  | $ | 3 |  |  | $ | 100 |  |  | $ | 65 |  |  | $ | 52 |  |  | $ | 53 |  |  | $ | — |  |  | $ | 7 |  |  | $ | — |  |  | $ | 280 |
Indirect installment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | — |  |  | $ | 318 |  |  | $ | 4,424 |  |  | $ | 10,891 |  |  | $ | 3,907 |  |  | $ | 2,469 |  |  | $ | — |  |  | $ | — |  |  | $ | 22,009 |
Non–performing |  | — |  |  | 40 |  |  | 236 |  |  | 616 |  |  | 262 |  |  | 178 |  |  | — |  |  | — |  |  | 1,332 |
Total indirect installment |  | $ | — |  |  | $ | 358 |  |  | $ | 4,660 |  |  | $ | 11,507 |  |  | $ | 4,169 |  |  | $ | 2,647 |  |  | $ | — |  |  | $ | — |  |  | $ | 23,341 |
Gross charge-offs during period |  | $ | — |  |  | $ | 200 |  |  | $ | 598 |  |  | $ | 889 |  |  | $ | 315 |  |  | $ | 188 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,190 |
Home equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 10,457 |  |  | $ | 11,436 |  |  | $ | 17,405 |  |  | $ | 13,678 |  |  | $ | 4,589 |  |  | $ | 8,421 |  |  | $ | 30,246 |  |  | $ | 474,092 |  |  | $ | 570,324 |
Non–performing |  | — |  |  | 83 |  |  | 623 |  |  | 432 |  |  | 2 |  |  | 173 |  |  | 5,899 |  |  | — |  |  | 7,212 |
Total home equity |  | $ | 10,457 |  |  | $ | 11,519 |  |  | $ | 18,028 |  |  | $ | 14,110 |  |  | $ | 4,591 |  |  | $ | 8,594 |  |  | $ | 36,145 |  |  | $ | 474,092 |  |  | $ | 577,536 |
Gross charge-offs during period |  | $ | — |  |  | $ | — |  |  | $ | 20 |  |  | $ | 7 |  |  | $ | — |  |  | $ | 56 |  |  | $ | 788 |  |  | $ | — |  |  | $ | 871 |
Total consumer |  | $ | 18,108 |  |  | $ | 18,961 |  |  | $ | 73,429 |  |  | $ | 31,524 |  |  | $ | 12,450 |  |  | $ | 17,016 |  |  | $ | 36,156 |  |  | $ | 475,610 |  |  | $ | 683,254 |
The following tables present loans by credit grades and origination year at December 31, 2024.
December 31, 2024 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior |  | Revolving Term Loans |  | Revolving Loans |  | Total
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 75,649 |  |  | $ | 74,305 |  |  | $ | 90,872 |  |  | $ | 68,978 |  |  | $ | 36,778 |  |  | $ | 178,936 |  |  | $ | 92,227 |  |  | $ | 12,365 |  |  | $ | 630,110 |
Special Mention |  | 129 |  |  | — |  |  | 1,724 |  |  | 1,769 |  |  | 142 |  |  | 8,759 |  |  | — |  |  | 100 |  |  | 12,623 |
Substandard |  | 2,970 |  |  | 8,761 |  |  | 1,051 |  |  | 6,307 |  |  | — |  |  | 4,843 |  |  | — |  |  | 500 |  |  | 24,432 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total owner occupied real estate |  | $ | 78,748 |  |  | $ | 83,066 |  |  | $ | 93,647 |  |  | $ | 77,054 |  |  | $ | 36,920 |  |  | $ | 192,538 |  |  | $ | 92,227 |  |  | $ | 12,965 |  |  | $ | 667,165 |
Gross charge-offs during period |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1 |  |  | $ | — |  |  | $ | — |  |  | $ | 1 |
Non–owner occupied real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 194,167 |  |  | $ | 115,378 |  |  | $ | 244,266 |  |  | $ | 133,689 |  |  | $ | 100,688 |  |  | $ | 344,558 |  |  | $ | 298,288 |  |  | $ | 11,726 |  |  | $ | 1,442,760 |
Special Mention |  | — |  |  | 4,211 |  |  | 16,409 |  |  | 1,249 |  |  | — |  |  | 31,083 |  |  | — |  |  | — |  |  | 52,952 |
Substandard |  | 83 |  |  | 297 |  |  | — |  |  | — |  |  | — |  |  | 5,364 |  |  | — |  |  | — |  |  | 5,744 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total non–owner occupied real estate |  | $ | 194,250 |  |  | $ | 119,886 |  |  | $ | 260,675 |  |  | $ | 134,938 |  |  | $ | 100,688 |  |  | $ | 381,005 |  |  | $ | 298,288 |  |  | $ | 11,726 |  |  | $ | 1,501,456 |
Gross charge-offs during period |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Residential spec homes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 362 |  |  | $ | — |  |  | $ | — |  |  | $ | 420 |  |  | $ | — |  |  | $ | — |  |  | $ | 10,986 |  |  | $ | 3,843 |  |  | $ | 15,611 |
Special Mention |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Substandard |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total residential spec homes |  | $ | 362 |  |  | $ | — |  |  | $ | — |  |  | $ | 420 |  |  | $ | — |  |  | $ | — |  |  | $ | 10,986 |  |  | $ | 3,843 |  |  | $ | 15,611 |
Gross charge-offs during period |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Development & spec land |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 819 |  |  | $ | 4,139 |  |  | $ | 788 |  |  | $ | 1,133 |  |  | $ | 328 |  |  | $ | 2,039 |  |  | $ | 7,931 |  |  | $ | 599 |  |  | $ | 17,776 |
Special Mention |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 317 |  |  | — |  |  | — |  |  | 317 |
Substandard |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 534 |  |  | — |  |  | 534 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total development & spec land |  | $ | 819 |  |  | $ | 4,139 |  |  | $ | 788 |  |  | $ | 1,133 |  |  | $ | 328 |  |  | $ | 2,356 |  |  | $ | 8,465 |  |  | $ | 599 |  |  | $ | 18,627 |
Gross charge-offs during period |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial and industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 242,562 |  |  | $ | 105,877 |  |  | $ | 128,707 |  |  | $ | 73,008 |  |  | $ | 6,954 |  |  | $ | 54,764 |  |  | $ | 48,313 |  |  | $ | 179,370 |  |  | $ | 839,555 |
Special Mention |  | 1,246 |  |  | 324 |  |  | 1,245 |  |  | 28 |  |  | 1 |  |  | 1,573 |  |  | 9,519 |  |  | 9,281 |  |  | 23,217 |
Substandard |  | 843 |  |  | 2,599 |  |  | 318 |  |  | 217 |  |  | 266 |  |  | 3,170 |  |  | 1,003 |  |  | 4,109 |  |  | 12,525 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total commercial and industrial |  | $ | 244,651 |  |  | $ | 108,800 |  |  | $ | 130,270 |  |  | $ | 73,253 |  |  | $ | 7,221 |  |  | $ | 59,507 |  |  | $ | 58,835 |  |  | $ | 192,760 |  |  | $ | 875,297 |
Gross charge-offs during period |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 45 |  |  | $ | 108 |  |  | $ | — |  |  | $ | 153 |
Total commercial |  | $ | 518,830 |  |  | $ | 315,891 |  |  | $ | 485,380 |  |  | $ | 286,798 |  |  | $ | 145,157 |  |  | $ | 635,406 |  |  | $ | 468,801 |  |  | $ | 221,893 |  |  | $ | 3,078,156 |
December 31, 2024 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior |  | Revolving Term Loans |  | Revolving Loans |  | Total
Real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 69,264 |  |  | $ | 145,927 |  |  | $ | 160,780 |  |  | $ | 140,310 |  |  | $ | 78,563 |  |  | $ | 177,902 |  |  | $ | — |  |  | $ | — |  |  | $ | 772,746 |
Non–performing |  | 201 |  |  | 1,619 |  |  | 2,125 |  |  | 1,472 |  |  | 706 |  |  | 5,092 |  |  | — |  |  | — |  |  | 11,215 |
Total residential mortgage |  | $ | 69,465 |  |  | $ | 147,546 |  |  | $ | 162,905 |  |  | $ | 141,782 |  |  | $ | 79,269 |  |  | $ | 182,994 |  |  | $ | — |  |  | $ | — |  |  | $ | 783,961 |
Gross charge-offs during period |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 5 |  |  | $ | — |  |  | $ | — |  |  | $ | 5 |
Residential construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 18,948 |  |  | $ | — |  |  | $ | 18,948 |
Non–performing |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total residential construction |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 18,948 |  |  | $ | — |  |  | $ | 18,948 |
Gross charge-offs during period |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Mortgage warehouse |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Non–performing |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total mortgage warehouse |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Gross charge-offs during period |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Total real estate |  | $ | 69,465 |  |  | $ | 147,546 |  |  | $ | 162,905 |  |  | $ | 141,782 |  |  | $ | 79,269 |  |  | $ | 182,994 |  |  | $ | 18,948 |  |  | $ | — |  |  | $ | 802,909 |
December 31, 2024 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior |  | Revolving Term Loans |  | Revolving Loans |  | Total
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Direct installment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 11,306 |  |  | $ | 59,850 |  |  | $ | 9,510 |  |  | $ | 5,398 |  |  | $ | 2,679 |  |  | $ | 6,003 |  |  | $ | 60 |  |  | $ | 1,918 |  |  | $ | 96,724 |
Non–performing |  | 1 |  |  | 374 |  |  | 46 |  |  | 19 |  |  | — |  |  | 26 |  |  | — |  |  | — |  |  | 466 |
Total direct installment |  | $ | 11,307 |  |  | $ | 60,224 |  |  | $ | 9,556 |  |  | $ | 5,417 |  |  | $ | 2,679 |  |  | $ | 6,029 |  |  | $ | 60 |  |  | $ | 1,918 |  |  | $ | 97,190 |
Gross charge-offs during period |  | $ | 72 |  |  | $ | 93 |  |  | $ | 169 |  |  | $ | 1 |  |  | $ | 35 |  |  | $ | 78 |  |  | $ | 9 |  |  | $ | — |  |  | $ | 457 |
Indirect installment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 26,839 |  |  | $ | 70,143 |  |  | $ | 130,610 |  |  | $ | 49,458 |  |  | $ | 17,647 |  |  | $ | 7,304 |  |  | $ | — |  |  | $ | — |  |  | $ | 302,001 |
Non–performing |  | — |  |  | 425 |  |  | 800 |  |  | 304 |  |  | 242 |  |  | 129 |  |  | — |  |  | — |  |  | 1,900 |
Total indirect installment |  | $ | 26,839 |  |  | $ | 70,568 |  |  | $ | 131,410 |  |  | $ | 49,762 |  |  | $ | 17,889 |  |  | $ | 7,433 |  |  | $ | — |  |  | $ | — |  |  | $ | 303,901 |
Gross charge-offs during period |  | $ | 161 |  |  | $ | 449 |  |  | $ | 1,345 |  |  | $ | 527 |  |  | $ | 188 |  |  | $ | 99 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,769 |
Home equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 13,552 |  |  | $ | 21,845 |  |  | $ | 16,136 |  |  | $ | 5,110 |  |  | $ | 1,902 |  |  | $ | 9,210 |  |  | $ | 18,657 |  |  | $ | 470,753 |  |  | $ | 557,165 |
Non–performing |  | — |  |  | 421 |  |  | 426 |  |  | — |  |  | 30 |  |  | 296 |  |  | 6,465 |  |  | 81 |  |  | 7,719 |
Total home equity |  | $ | 13,552 |  |  | $ | 22,266 |  |  | $ | 16,562 |  |  | $ | 5,110 |  |  | $ | 1,932 |  |  | $ | 9,506 |  |  | $ | 25,122 |  |  | $ | 470,834 |  |  | $ | 564,884 |
Gross charge-offs during period |  | $ | — |  |  | $ | 23 |  |  | $ | 52 |  |  | $ | 88 |  |  | $ | — |  |  | $ | 39 |  |  | $ | 110 |  |  | $ | 11 |  |  | $ | 323 |
Total consumer |  | $ | 51,698 |  |  | $ | 153,058 |  |  | $ | 157,528 |  |  | $ | 60,289 |  |  | $ | 22,500 |  |  | $ | 22,968 |  |  | $ | 25,182 |  |  | $ | 472,752 |  |  | $ | 965,975 |

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