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Allowance for Credit Losses
 9 Months Ended
Sep. 30, 2025
Receivables [Abstract]  
Allowance for Credit Losses Allowance for Credit Losses
(In Thousands)

Allowance for Credit Losses on Loans
The allowance for credit losses is an estimate of expected losses inherent within the Company’s loans held for investment and is maintained at a level believed adequate by management to absorb credit losses inherent in the entire loan portfolio. Management evaluates the adequacy of the allowance for credit losses on a quarterly basis. Expected credit loss inherent in non-cancellable off-balance-sheet credit exposures is accounted for as a separate liability in the Consolidated Balance Sheets. The allowance for credit losses on loans held for investment, as reported in the Company’s Consolidated Balance Sheets, is adjusted by a provision for credit losses, which is reported in earnings, and reduced by net charge-offs. Loan losses are charged against the allowance for credit losses when management believes the uncollectability of a loan balance is confirmed and such losses are reasonably quantifiable. Subsequent recoveries, if any, are credited to the allowance. For more information about the Company’s policies and procedures for determining the amount of the allowance for credit losses, please refer to the discussion in Note 1, “Summary of Significant Accounting Policies,” in the Notes to the Consolidated Financial Statements in Item 8, Financial Statements and Supplementary Data, in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
The Company has made an accounting policy election to exclude accrued interest from the measurement of the allowance for credit losses in the Company’s loan portfolio. As of September 30, 2025 and December 31, 2024, the Company had accrued interest receivable for loans of $72,216 and $54,395, respectively, which is recorded in the “Other assets” line item on the Consolidated Balance Sheets.
The following tables provide a roll-forward of the allowance for credit losses by loan category and a breakdown of the ending balance of the allowance based on the Company’s credit loss methodology for the periods presented:
CommercialReal Estate -
Construction		Real Estate -
1-4 Family
Mortgage		Real Estate  -
Commercial
Mortgage		Lease FinancingInstallment
Loans to Individuals		Total
Three Months Ended September 30, 2025
Allowance for credit losses:
Beginning balance$59,676 $21,784 $65,703 $135,572 $1,935 $6,100 $290,770 
Initial impact of purchased credit deteriorated (“PCD”) loans acquired
1,890 — 505 (885)— — 1,510 
Charge-offs(2,557)(8)(612)(1,296)(42)(539)(5,054)
Recoveries51 6 84 429 90 55 715 
Net charge-offs(2,506)(2)(528)(867)48 (484)(4,339)
Provision for (recovery of) credit losses on loans1,466 2,171 1,146 5,522 (503)(152)9,650 
Ending balance$60,526 $23,953 $66,826 $139,342 $1,480 $5,464 $297,591 
Nine Months Ended September 30, 2025
Allowance for credit losses:
Beginning balance$38,527 $15,126 $47,761 $90,204 $3,368 $6,770 $201,756 
Initial impact of PCD loans acquired during the period9,030 1,997 769 13,205 — 2 25,003 
Charge-offs(8,474)(113)(1,240)(5,701)(2,436)(1,198)(19,162)
Recoveries1,636 6 154 551 103 444 2,894 
Net charge-offs(6,838)(107)(1,086)(5,150)(2,333)(754)(16,268)
Provision for (recovery of) credit losses on loans19,807 6,937 19,382 41,083 445 (554)87,100 
Ending balance$60,526 $23,953 $66,826 $139,342 $1,480 $5,464 $297,591 
Nonaccruing loans with no allowance for credit losses$25,041 $4,412 $4,275 $17,480 $— $— $51,208 
CommercialReal Estate -
Construction		Real Estate -
1-4 Family
Mortgage		Real Estate  -
Commercial
Mortgage		Lease FinancingInstallment Loans to IndividualsTotal
Three Months Ended September 30, 2024
Allowance for credit losses:
Beginning balance$44,951 $18,896 $47,421 $77,125 $2,515 $8,963 $199,871 
Charge-offs(347)— (256)(10)(642)(649)(1,904)
Recoveries514 — 57 11 8 611 1,201 
Net recoveries (charge-offs) 167 — (199)1 (634)(38)(703)
(Recovery of) provision for credit losses on loans(2,065)(2,240)(3)4,961 503 54 1,210 
Ending balance$43,053 $16,656 $47,219 $82,087 $2,384 $8,979 $200,378 
Nine Months Ended September 30, 2024
Allowance for credit losses:
Beginning balance$43,980 $18,612 $47,283 $77,020 $2,515 $9,168 $198,578 
Charge-offs(882)— (546)(5,737)(642)(1,379)(9,186)
Recoveries1,385 — 130 116 26 1,181 2,838 
Net recoveries (charge-offs) 503 — (416)(5,621)(616)(198)(6,348)
Provision for (recovery of) credit losses on loans(1,430)(1,956)352 10,688 485 9 8,148 
Ending balance$43,053 $16,656 $47,219 $82,087 $2,384 $8,979 $200,378 
Nonaccruing loans with no allowance for credit losses$122 $— $6,898 $25,016 $614 $— $32,650 
 
The Company recorded a provision for credit losses on loans of $9,650 during the third quarter of 2025, as compared to a provision for credit losses on loans of $1,210 recorded in the third quarter of 2024. The Company’s allowance for credit losses model considers economic projections, primarily the national unemployment rate and GDP, over a reasonable and supportable period of two years. The provision for credit losses on loans of $9,650 in the third quarter of 2025 was primarily driven by loan growth and changes in credit metrics that influenced the Company’s expectations of future losses, including but not limited to the balance of nonperforming loans, underlying collateral values, and historical levels of charge-offs, all considered in the context of the existing balance of the allowance for credit losses.
Allowance for Credit Losses on Unfunded Loan Commitments
The Company maintains a separate allowance for credit losses on unfunded loan commitments, which is included in the “Other liabilities” line item on the Consolidated Balance Sheets. For more information about the Company’s policies and procedures for determining the amount of the allowance for credit losses on unfunded loan commitments, please refer to the discussion in Note 1, “Significant Accounting Policies,” in the Notes to the Consolidated Financial Statements in Item 8, Financial Statements and Supplementary Data, in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
The following table provides a roll-forward of the allowance for credit losses on unfunded loan commitments for the periods presented.
Three Months Ended September 30,20252024
Allowance for credit losses on unfunded loan commitments:
Beginning balance$23,565 $15,718 
Provision for (recovery of) credit losses on unfunded loan commitments800 (275)
Ending balance$24,365 $15,443 
Nine Months Ended September 30,20252024
Allowance for credit losses on unfunded loan commitments:
Beginning balance$14,943 $16,918 
Provision for (recovery of) credit losses on unfunded loan commitments9,422 (1,475)
Ending balance$24,365 $15,443 

The Company recorded a provision for credit losses on unfunded loan commitments of $800 during the third quarter of 2025, as compared to a recovery of credit losses on unfunded loan commitments of $275 recorded in the third quarter of 2024. The $800 provision for credit losses on unfunded commitments in the third quarter of 2025 was primarily driven by growth in the balance of unfunded loan commitments.