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Loans
 9 Months Ended
Sep. 30, 2025
Receivables [Abstract]  
Loans Loans
The following table presents the composition of loans segregated by class of loans, as of September 30, 2025 and December 31, 2024.
(dollars in thousands)September 30, 2025December 31, 2024
Construction, land & land development$240,819 $205,046 
Other commercial real estate1,064,984 990,648 
Total commercial real estate1,305,803 1,195,694 
Residential real estate377,058 344,167 
Commercial, financial & agricultural 213,274 213,910 
Consumer and other140,921 89,209 
Total loans$2,037,056 $1,842,980 
Included in the above table are government guaranteed loans totaling $85.0 million at September 30, 2025 and $81.6 million at December 31, 2024. The following table presents the composition of government guaranteed loans segregated by class of loans for each respective period.
(dollars in thousands)September 30, 2025December 31, 2024
Construction, land & land development$2,288 $2,317 
Other commercial real estate39,179 41,471 
Total commercial real estate41,467 43,788 
Residential real estate13,512 9,348 
Commercial, financial & agricultural 30,020 28,500 
Total loans$84,999 $81,636 

The Company elected to exclude accrued interest receivable from the amortized cost basis of loans disclosed throughout this note. As of September 30, 2025 and December 31, 2024, accrued interest receivable for loans totaled $9.7 million and $8.8 million, respectively, and is included in the "Other assets" line item on the Company’s consolidated balance sheet.

Commercial, financial & agricultural loans are extended to a diverse group of businesses within the Company’s market area. These loans are often underwritten based on the borrower’s ability to service the debt from income from the business. Real estate construction loans often require loan funds to be advanced prior to completion of the project. Due to uncertainties inherent in estimating construction costs, changes in interest rates and other economic conditions, these loans often pose a higher risk than other types of loans. Consumer and other loans are originated at the Bank level.
Credit Quality Indicators. As part of the ongoing monitoring of the credit quality of the loan portfolio, management tracks certain credit quality indicators including trends related to (1) the risk grade assigned to commercial and consumer loans, (2) the level of classified commercial loans, (3) net charge-offs, (4) nonperforming loans, and (5) the general economic conditions in the Company’s geographic markets.
The Company uses a risk grading matrix to assign a risk grade to each of its loans. For commercial loans over $500,000, loans are graded on a scale of 1 to 10. A description of the general characteristics of the grades is as follows:
•Grades 1, 2 and 3 - Loans with these assigned risk grades range from virtual absence of risk to minimal risk. Such loans may be secured by Company-issued and controlled certificates of deposit or properly margined equity securities or bonds. Other loans comprising these grades are made to companies that have been in existence for a long period of time with many years of consecutive profits and strong equity, good liquidity, excellent debt service ability and unblemished past performance, or to exceptionally strong individuals with collateral of unquestioned value that fully secures the loans. Loans in this category fall into the “pass” classification.
•Grades 4 and 5 - Loans assigned these “pass” risk grades are made to borrowers with acceptable credit quality and risk. The risk ranges from loans with no significant weaknesses in repayment capacity and collateral protection to acceptable loans with one or more risk factors considered to be more than average. These loans are also included in the “pass” classification.
•Grade 6 - This grade includes “special mention” loans on management’s watch list and is intended to be used on a temporary basis for pass grade loans where risk-modifying action is intended in the short-term.
•Grades 7 and 8 - These grades include “substandard” loans in accordance with regulatory guidelines. This category includes borrowers with well-defined weaknesses that jeopardize the payment of the debt in accordance with the agreed terms. Loans considered to be impaired are assigned grade 8, and these loans often have assigned loss allocations as part of the allowance for credit losses. Generally, loans on which interest accrual has been stopped would be included in this grade range.
•Grades 9 and 10 - These grades correspond to regulatory classification definitions of “doubtful” and “loss,” respectively. In practice, any loan with these grades would be for a very short period of time, and generally the Company has no loans with these assigned grades. Management manages the Company’s problem loans in such a way that uncollectible loans or uncollectible portions of loans are charged off immediately with any residual, collectible amounts assigned a risk grade of 7 or 8. 
For smaller commercial loans (under $500,000) and consumer loans, the Company began using behavioral based risk grades during the second quarter of 2024. These loans are assigned risk grades of 98 or 99 based on payment performance with the Company.
◦Grade 98 - Loans assigned this risk grade indicates a "pass" credit.
◦Grade 99 - Loans assigned this risk grade indicates a "substandard" credit and is moved to a nonaccrual status.
The following tables present the loan portfolio segregated by class of loans and the risk category of term loans by vintage year, which is the year of origination or most recent renewal, as of September 30, 2025 and December 31, 2024. Those loans with a risk grade of 1, 2, 3, 4, 5 and 98 have been combined in the pass line for presentation purposes. Loans with a risk grade of 7, 8 and 99 have been combined in the substandard line. There were no loans with a risk rating of "doubtful" or "loss" at September 30, 2025 or December 31, 2024.
Term Loans Amortized Cost Basis by Origination Year
(dollars in thousands)20252024202320222021PriorRevolversRevolvers converted to term loansTotal
September 30, 2025
Construction, land & land development
Risk rating
Pass$110,671 $52,124 $18,968 $22,300 $18,426 $3,808 $129 $— $226,426 
Special Mention— — 6,204 6,145 — 400 — — 12,749 
Substandard— 40 1,132 388 — 84 — — 1,644 
Total Construction, land & land development110,671 52,164 26,304 28,833 18,426 4,292 129 — 240,819 
  Current period gross write offs$— $— $— $— $— $— $— $— $— 
Other commercial real estate
Risk rating
Pass139,562 75,452 71,285 330,790 169,054 241,889 10,488 1,529 1,040,049 
Special Mention— — 4,536 3,036 — 3,868 — 522 11,962 
Substandard533 4,239 2,226 3,403 516 1,216 637 203 12,973 
Total Other commercial real estate140,095 79,691 78,047 337,229 169,570 246,973 11,125 2,254 1,064,984 
Current period gross write offs— — 206 278 5 20 — — 509 
Residential real estate
Risk rating
Pass54,018 17,678 71,554 103,859 40,327 53,175 29,110 808 370,529 
Special Mention370 94 251 — 1,293 2,821 195 — 5,024 
Substandard46 — 254 405 258 542 — — 1,505 
Total Residential real estate54,434 17,772 72,059 104,264 41,878 56,538 29,305 808 377,058 
Current period gross write offs— — — 140 — 43 — — 183 
Commercial, financial & agricultural
Risk rating
Pass33,240 36,205 33,941 26,001 8,229 18,645 41,936 675 198,872 
Special Mention1,917 250 145 143 — — 4,000 — 6,455 
Substandard— 88 3,533 1,745 2,047 198 336 — 7,947 
Total Commercial, financial & agricultural35,157 36,543 37,619 27,889 10,276 18,843 46,272 675 213,274 
Current period gross write offs36 399 602 619 433 60 — — 2,149 
Consumer and other
Risk rating
Pass73,982 33,106 29,866 1,543 490 1,124 553 9 140,673 
Special Mention— 131 — — — — — — 131 
Substandard— 51 66 — — — — — 117 
Total Consumer and other73,982 33,288 29,932 1,543 490 1,124 553 9 140,921 
Current period gross write offs24 745 147 11 — 12 — — 939 
Total Loans
Risk rating
Pass411,473 214,565 225,614 484,493 236,526 318,641 82,216 3,021 1,976,549 
Special Mention2,287 475 11,136 9,324 1,293 7,089 4,195 522 36,321 
Substandard579 4,418 7,211 5,941 2,821 2,040 973 203 24,186 
Total Loans$414,339 $219,458 $243,961 $499,758 $240,640 $327,770 $87,384 $3,746 $2,037,056 
Total current period gross write offs$60 $1,144 $955 $1,048 $438 $135 $— $— $3,780 
Term Loans Amortized Cost Basis by Origination Year
(dollars in thousands)20242023202220212020PriorRevolversRevolvers converted to term loansTotal
December 31, 2024
Construction, land & land development
Risk rating
Pass$98,269 $47,378 $25,930 $23,193 $1,979 $5,379 $53 $— $202,181 
Special Mention— 2,088 — — 411 — 281 — 2,780 
Substandard— — — — — 85 — — 85 
Total Construction, land & land development98,269 49,466 25,930 23,193 2,390 5,464 334 — 205,046 
  Current period gross write offs$— $— $— $— $— $— $— $— $— 
Other commercial real estate
Risk rating
Pass55,169 85,172 343,123 180,568 76,905 194,444 21,341 1,849 958,571 
Special Mention850 1,999 4,288 173 2,344 7,376 610 1,069 18,709 
Substandard4,114 2,586 2,875 459 352 2,419 563 — 13,368 
Total Other commercial real estate60,133 89,757 350,286 181,200 79,601 204,239 22,514 2,918 990,648 
Current period gross write offs— — — — — 20 — — 20 
Residential real estate
Risk rating
Pass16,675 76,074 112,784 45,111 18,978 44,892 23,222 926 338,662 
Special Mention— 1,672 374 — — 1,989 204 — 4,239 
Substandard— — 442 270 28 526 — — 1,266 
Total Residential real estate16,675 77,746 113,600 45,381 19,006 47,407 23,426 926 344,167 
Current period gross write offs— — 400 18 — 9 — — 427 
Commercial, financial & agricultural
Risk rating
Pass44,380 46,610 33,124 12,322 8,662 16,143 43,051 742 205,034 
Special Mention— 622 2,136 12 — — 700 — 3,470 
Substandard105 1,612 858 1,904 271 218 433 5 5,406 
Total Commercial, financial & agricultural44,485 48,844 36,118 14,238 8,933 16,361 44,184 747 213,910 
Current period gross write offs138 588 659 986 28 68 — — 2,467 
Consumer and other
Risk rating
Pass53,500 30,186 2,312 857 530 1,291 456 13 89,145 
Special Mention— — — — — — — — — 
Substandard49 — 12 1 2 — — — 64 
Total Consumer and other53,549 30,186 2,324 858 532 1,291 456 13 89,209 
Current period gross write offs84 392 81 1 5 41 — — 604 
Total Loans
Risk rating
Pass267,993 285,420 517,273 262,051 107,054 262,149 88,123 3,530 1,793,593 
Special Mention850 6,381 6,798 185 2,755 9,365 1,795 1,069 29,198 
Substandard4,268 4,198 4,187 2,634 653 3,248 996 5 20,189 
Total Loans$273,111 $295,999 $528,258 $264,870 $110,462 $274,762 $90,914 $4,604 $1,842,980 
Total current period gross write offs$222 $980 $1,140 $1,005 $33 $138 $— $— $3,518 
A loan’s risk grade is assigned at the inception of the loan and is based on the financial strength of the borrower and the type of collateral. Loan risk grades are subject to review at various times throughout the year as part of the Company’s ongoing loan review process. Loans with an assigned risk grade of 7, 8, 9, 10 or 99 and an outstanding balance of $500,000 or more are reassessed on a quarterly basis. During this reassessment process individual reserves may be identified and placed against certain loans which are not considered impaired.
In assessing the overall economic condition of the markets in which it operates, the Company monitors the unemployment rates for its major service areas. The unemployment rates are reviewed on a quarterly basis as part of the allowance for credit loss determination.
Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Generally, loans are placed on nonaccrual status if principal or interest payments become 90 days past due or when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provision. Loans may be placed on nonaccrual status regardless of whether or not such loans are considered past due.
Collateral-Dependent Loans
Loans are classified as collateral-dependent when the borrower is experiencing financial difficulty, and we expect repayment to be provided substantially through the operation or sale of collateral. Our commercial loans have collateral that is comprised of real estate and business assets. Our consumer loans have collateral that is substantially comprised of residential real estate. The Company had $5.9 million and $3.1 million in collateral-dependent loans at September 30, 2025 and December 31, 2024, respectively.
There were no significant changes in the extent to which collateral secures our collateral-dependent loans during the three and nine month periods ended September 30, 2025 and September 30, 2024.
The following table presents an age analysis of past due loans and nonaccrual loans, segregated by class of loans, as of September 30, 2025 and December 31, 2024:
(dollars in thousands)30-89 Days
Past Due		90 Days
or More
Past Due		Total Accruing
Loans Past Due		Nonaccrual
Loans		Current LoansTotal Loans
September 30, 2025
Construction, land & land development$49 $— $49 $388 $240,382 $240,819 
Other commercial real estate95 — 95 7,533 1,057,356 1,064,984 
Total commercial real estate144 — 144 7,921 1,297,738 1,305,803 
Residential real estate929 — 929 1,214 374,915 377,058 
Commercial, financial & agricultural1,337 — 1,337 5,016 206,921 213,274 
Consumer and other1,103 98 1,201 117 139,603 140,921 
Total Loans$3,513 $98 $3,611 $14,268 $2,019,177 $2,037,056 
December 31, 2024
Construction, land & land development$544 $— $544 $— $204,502 $205,046 
Other commercial real estate2,441 — 2,441 4,833 983,374 990,648 
Total commercial real estate2,985 — 2,985 4,833 1,187,876 1,195,694 
Residential real estate3,689 — 3,689 1,204 339,274 344,167 
Commercial, financial & agricultural1,348 — 1,348 4,559 208,003 213,910 
Consumer and other339 152 491 64 88,654 89,209 
Total Loans$8,361 $152 $8,513 $10,660 $1,823,807 $1,842,980 
The following tables display a summary of the Company's nonaccrual loans by major categories for the periods indicated.
September 30, 2025
(dollars in thousands)Nonaccrual Loans with No Related ACLNonaccrual Loans with a Related ACLTotal Nonaccrual Loans
Construction, land & land development$— $388 $388 
Other commercial real estate5,756 1,777 7,533 
Total commercial real estate5,756 2,165 7,921 
Residential real estate— 1,214 1,214 
Commercial, financial & agricultural1,872 3,144 5,016 
Consumer and other— 117 117 
Total Loans$7,628 $6,640 $14,268 
December 31, 2024
(dollars in thousands)Nonaccrual Loans with No Related ACLNonaccrual Loans with a Related ACLTotal Nonaccrual Loans
Construction, land & land development$— $— $— 
Other commercial real estate1,482 3,351 4,833 
Total commercial real estate1,482 3,351 4,833 
Residential real estate— 1,204 1,204 
Commercial, financial & agricultural— 4,559 4,559 
Consumer and other— 64 64 
Total Loans$1,482 $9,178 $10,660 
Interest income recorded on nonaccrual loans during the three months ended September 30, 2025 and 2024 was $356,000 and $173,000, respectively. Interest income recorded on nonaccrual loans during the nine months ended September 30, 2025 and 2024 was $735,000 and $390,000, respectively.
The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon asset origination or acquisition. The starting point for the estimate of the allowance for credit losses is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. The Company uses a discounted cash flow model to determine the allowance for credit losses. An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification.
Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses because of the measurement methodologies used to estimate the allowance, a change to the allowance for credit losses is generally not recorded upon modification. Occasionally, the Company modifies loans by providing principal forgiveness on certain of its real estate loans. When principal forgiveness is provided, the amortized cost basis of the asset is written off against the allowance for credit losses. The amount of the principal forgiveness is deemed to be uncollectible; therefore, that portion of the loan is written off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the allowance for credit losses.
In some cases, the Company will modify a certain loan by providing multiple types of concessions. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted. Upon the Company's determination that a modified loan, or portion of a loan, has subsequently been deemed uncollectible, the loan, or portion of the loan, is written off.
The following tables present loans modified due to a financial difficulty under the above terms during the three and nine month periods ended September 30, 2025 and September 30, 2024.
Three months ended September 30, 2025
(dollars in thousands)Term ExtensionPayment DelayTerm Extension and Payment DelayTotal*
Commercial, financial & agricultural— 888 — 888 
Total Loans$— $888 $— $888 
*less than 0.04% of total class of receivable
There was one commercial, financial & agricultural loan which was given a payment delay during the three months ended September 30, 2025.
Three months ended September 30, 2024
(dollars in thousands)Term ExtensionPayment DelayTerm Extension and Payment DelayTotal*
Other commercial real estate224 — — 224 
Commercial, financial & agricultural$— $1,114 $558 $1,672 
Total Loans$224 $1,114 $558 $1,896 
*less than 0.10% of total class of receivable
There were a total of six loans in the above categories for the three months ended September 30, 2024. The commercial real estate category consisted of one loan which was given a term extension of one year. The commercial, financial & agricultural category consisted of five loans, three of which had been given payment delays and two SBSL loans which were each given payment delays and term extensions of ten years.
Nine months ended September 30, 2025
(dollars in thousands)Term ExtensionPayment DelayTerm Extension and Payment DelayTotal*
Commercial, financial & agricultural— 888 — 888 
Total Loans$— $888 $— $888 
*less than 0.04% of total class of receivable
There was one commercial, financial & agricultural loan which was given a payment delay during the nine months ended September 30, 2025.
Nine months ended September 30, 2024
(dollars in thousands)Term ExtensionPayment DelayTerm Extension and Payment DelayTotal*
Other commercial real estate$355 $— $144 $499 
Commercial, financial & agricultural— 1,482 597 2,079 
Total Loans$355 $1,482 $741 $2,578 
*less than 0.14% of total class of receivable
There were a total of ten loans in the above categories for the nine months ended September 30, 2024. The commercial real estate loans consisted of three loans, each with a term extension of one year with one of these loans also given a payment delay. There were seven commercial, financial & agricultural loans, four of which had been given a payment delay only and three with both a payment delay and term extensions, one loan for five years and two loans for ten years.
The Company had no loans that subsequently defaulted during the three month period ended September 30, 2025 and one commercial, financial & agricultural loan that subsequently defaulted during the nine month period ended September 30, 2025 due to late payments. This loan had been given a payment delay as well as a term extension.
There were no loans that subsequently defaulted during the three and nine month periods ended September 30, 2024.