Loans

12 Months Ended

Dec. 31, 2025

Note 4 - Loans

The following tables present net loan balances by segment for portfolio loans, PCD loans, and loans purchased which are not considered purchase credit deteriorated (“Non-PCD”) as of:


	December 31, 2025
(In thousands)	Portfolio Loans		Acquired Non-PCD Loans		PCD Loans		Total
Construction and land development	$	579,141	$	141,326	$	3,463	$	723,930
CRE - owner occupied	1,505,798		509,118		28,709		2,043,625
CRE - non-owner occupied	2,911,189		1,193,351		150,452		4,254,992
Residential real estate	2,101,868		963,836		33,155		3,098,859
Commercial and financial	1,828,038		476,130		16,821		2,320,989
Consumer	141,768		43,321		500		185,589
Totals	$	9,067,802	$	3,327,082	$	233,100	$	12,627,984


	December 31, 2024
(In thousands)	Portfolio Loans		Acquired Non-PCD Loans		PCD Loans		Total
Construction and land development	$	568,148	$	79,370	$	535	$	648,053
CRE - owner occupied	1,177,538		477,459		31,632		1,686,629
CRE - non-owner occupied	2,243,056		1,156,849		103,903		3,503,808
Residential real estate	1,882,955		719,589		14,241		2,616,785
Commercial and financial	1,424,689		199,146		27,519		1,651,354
Consumer	155,786		37,282		253		193,321
Totals	$	7,452,172	$	2,669,695	$	178,083	$	10,299,950

The amortized cost basis of loans included net deferred costs of $46.3 million and $43.9 million at December 31, 2025 and December 31, 2024, respectively. At December 31, 2025, the remaining fair value adjustments on acquired loans was a discount of $150.0 million, or 4.0% of the outstanding acquired loan balances, compared to $128.1 million, or 4.3% of the acquired loan balances at December 31, 2024. The discount is accreted into interest income over the remaining lives of the related loans on a level yield basis.

Accrued interest receivable is included within Other Assets and was $45.7 million and $38.1 million at December 31, 2025 and 2024, respectively.

Loans to directors and executive officers totaled $3.0 million and $1.4 million at December 31, 2025 and 2024, respectively.

The following tables present the status of net loan balances as of December 31, 2025 and December 31, 2024.


	December 31, 2025
(In thousands)	Current		Accruing 30-59 Days Past Due		Accruing 60-89 Days Past Due		Accruing Greater Than 90 Days		Nonaccrual		Total
Portfolio Loans
Construction and land development	$	577,467	$	60	$	—	$	—	$	1,614	$	579,141
CRE - owner occupied	1,489,257		2,313		—		—		14,228		1,505,798
CRE - non-owner occupied	2,908,789		1,735		271		—		394		2,911,189
Residential real estate	2,091,065		4,618		364		—		5,821		2,101,868
Commercial and financial	1,807,012		11,518		19		—		9,489		1,828,038
Consumer	140,679		454		28		—		607		141,768
Total Portfolio Loans	$	9,014,269	$	20,698	$	682	$	—	$	32,153	$	9,067,802

Acquired Non-PCD Loans
Construction and land development	$	140,286	$	—	$	—	$	—	$	1,040	$	141,326
CRE - owner occupied	504,275		204		39		—		4,600		509,118
CRE - non-owner occupied	1,187,231		151		—		—		5,969		1,193,351
Residential real estate	954,820		3,609		195		124		5,088		963,836
Commercial and financial	470,768		50		4,785		—		527		476,130
Consumer	41,103		37		—		—		2,181		43,321
Total Acquired Non-PCD Loans	$	3,298,483	$	4,051	$	5,019	$	124	$	19,405	$	3,327,082

PCD Loans
Construction and land development	$	98	$	—	$	—	$	—	$	3,365	$	3,463
CRE - owner occupied	26,652		—		219		—		1,838		28,709
CRE - non-owner occupied	137,051		389		—		—		13,012		150,452
Residential real estate	30,018		993		833		118		1,193		33,155
Commercial and financial	15,786		—		—		—		1,035		16,821
Consumer	468		30		2		—		—		500
Total PCD Loans	$	210,073	$	1,412	$	1,054	$	118	$	20,443	$	233,100

Total Loans	$	12,522,825	$	26,161	$	6,755	$	242	$	72,001	$	12,627,984


	December 31, 2024
(In thousands)	Current		Accruing 30-59 Days Past Due		Accruing 60-89 Days Past Due		Accruing Greater Than 90 Days		Nonaccrual		Total
Portfolio Loans
Construction and land development	$	567,896	$	127	$	—	$	—	$	125	$	568,148
CRE - owner occupied	1,172,287		3,083		—		—		2,168		1,177,538
CRE - non-owner occupied	2,225,216		833		—		—		17,007		2,243,056
Residential real estate	1,866,295		5,466		450		—		10,744		1,882,955
Commercial and financial	1,411,623		1,075		106		—		11,885		1,424,689
Consumer	152,129		331		5		—		3,321		155,786
Total Portfolio Loans	$	7,395,446	$	10,915	$	561	$	—	$	45,250	$	7,452,172

Acquired Non-PCD Loans
Construction and land development	$	78,728	$	8	$	99	$	—	$	535	$	79,370
CRE - owner occupied	473,118		2,414		—		—		1,927		477,459
CRE - non-owner occupied	1,151,541		148		—		—		5,160		1,156,849
Residential real estate	706,566		1,064		131		—		11,828		719,589
Commercial and financial	195,853		—		—		35		3,258		199,146
Consumer	32,375		11		1		—		4,895		37,282
Total Acquired Non-PCD Loans	$	2,638,181	$	3,645	$	231	$	35	$	27,603	$	2,669,695

PCD Loans
Construction and land development	$	43	$	—	$	—	$	—	$	492	$	535
CRE - owner occupied	26,987		—		—		—		4,645		31,632
CRE - non-owner occupied	96,188		—		—		—		7,715		103,903
Residential real estate	12,752		—		—		167		1,322		14,241
Commercial and financial	22,153		—		—		—		5,366		27,519
Consumer	200		—		—		—		53		253
Total PCD Loans	$	158,323	$	—	$	—	$	167	$	19,593	$	178,083

Total Loans	$	10,191,950	$	14,560	$	792	$	202	$	92,446	$	10,299,950

All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest subsequently received on such loans is accounted for under the cost-recovery method, whereby interest income is not recognized until the loan balance is paid down to zero. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current, and future payments are reasonably assured. The Company recognized interest income of $4.0 million, $1.3 million, and $0.5 million on nonaccrual loans during the years ended December 31, 2025, 2024, and 2023, respectively.

The following tables present net loans on nonaccrual status as of:


	December 31, 2025
(In thousands)	Nonaccrual Loans With No Related Allowance		Nonaccrual Loans With an Allowance		Total Nonaccrual Loans
Construction and land development	$	4,207	$	1,812	$	6,019
CRE - owner occupied	15,546		5,120		20,666
CRE - non-owner occupied	18,202		1,173		19,375
Residential real estate	1,448		10,654		12,102
Commercial and financial	3,842		7,209		11,051
Consumer	—		2,788		2,788
Totals	$	43,245	$	28,756	$	72,001


	December 31, 2024
(In thousands)	Nonaccrual Loans With No Related Allowance		Nonaccrual Loans With an Allowance		Total Nonaccrual Loans
Construction and land development	$	492	$	660	$	1,152
CRE - owner occupied	2,622		6,118		8,740
CRE - non-owner occupied	29,449		433		29,882
Residential real estate	6,462		17,432		23,894
Commercial and financial	2,703		17,806		20,509
Consumer	2,416		5,853		8,269
Totals	$	44,144	$	48,302	$	92,446

Loans by Risk Rating

The Company utilizes an internal asset classification system as a means of identifying problem and potential problem loans. The following classifications are used to categorize loans under the internal classification system:

•Pass: Loans that are not problem loans or potential problem loans are considered to be pass-rated.

•Special Mention: Loans that do not currently expose the Company to sufficient risk to warrant classification in the Substandard or Doubtful categories but possess weaknesses that deserve management’s close attention are deemed to be Special Mention.

•Substandard: Loans with the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

•Doubtful: Loans that have all the weaknesses inherent in those classified Substandard with the added characteristic that the weakness present makes collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

The following tables present the risk rating of loans and gross charge-offs by year of origination as of:


	December 31, 2025
(In thousands)	2025		2024		2023		2022		2021		Prior		Revolving		Revolving Converted to Term		Total
Construction and Land Development
Risk Ratings:
Pass	$	121,237	$	332,530	$	57,222	$	41,967	$	38,085	$	31,055	$	87,508	$	—	$	709,604
Special Mention	—		—		—		—		4,914		348		—		—		5,262
Substandard	999		—		3,819		2,095		—		965		1,186		—		9,064
Doubtful	—		—		—		—		—		—		—		—		—
Total	$	122,236	$	332,530	$	61,041	$	44,062	$	42,999	$	32,368	$	88,694	$	—	$	723,930
Gross Charge-Offs	$	—	$	—	$	115	$	—	$	24	$	17	$	—	$	—	$	156
CRE - owner occupied
Risk Ratings:
Pass	$	405,841	$	180,447	$	156,256	$	235,989	$	241,758	$	703,744	$	29,882	$	—	$	1,953,917
Special Mention	—		7,380		2,816		966		5,319		12,838		398		—		29,717
Substandard	—		3,464		11,342		17,878		2,194		25,038		75		—		59,991
Doubtful	—		—		—		—		—		—		—		—		—
Total	$	405,841	$	191,291	$	170,414	$	254,833	$	249,271	$	741,620	$	30,355	$	—	$	2,043,625
Gross Charge-Offs	$	—	$	—	$	—	$	238	$	—	$	490	$	—	$	—	$	728
CRE - non-owner occupied
Risk Ratings:
Pass	$	704,003	$	538,748	$	318,106	$	848,500	$	552,105	$	1,084,106	$	31,102	$	—	$	4,076,670
Special Mention	—		22		8,984		44,738		9,781		42,347		—		—		105,872
Substandard	—		—		—		39,559		9,061		23,830		—		—		72,450
Doubtful	—		—		—		—		—		—		—		—		—
Total	$	704,003	$	538,770	$	327,090	$	932,797	$	570,947	$	1,150,283	$	31,102	$	—	$	4,254,992
Gross Charge-Offs	$	—	$	—	$	—	$	—	$	—	$	420	$	—	$	—	$	420
Residential real estate
Risk Ratings:
Pass	$	272,509	$	196,766	$	185,686	$	476,581	$	610,708	$	569,549	$	662,764	$	96,123	$	3,070,686
Special Mention	—		476		78		1,527		—		663		5,068		174		7,986
Substandard	—		318		113		2,120		5,079		6,630		4,810		1,117		20,187
Doubtful	—		—		—		—		—		—		—		—		—
Total	$	272,509	$	197,560	$	185,877	$	480,228	$	615,787	$	576,842	$	672,642	$	97,414	$	3,098,859
Gross Charge-Offs	$	—	$	—	$	—	$	145	$	210	$	36	$	19	$	—	$	410

Commercial and financial
Risk Ratings:
Pass	$	582,118	$	414,134	$	151,321	$	252,087	$	215,002	$	167,651	$	495,663	$	—	$	2,277,976
Special Mention	—		1,286		110		584		2,229		6,312		3,570		—		14,091


	December 31, 2025
(In thousands)	2025		2024		2023		2022		2021		Prior		Revolving		Revolving Converted to Term		Total
Substandard	—		716		2,944		5,067		6,538		6,211		6,850		—		28,326
Doubtful	—		—		—		—		596		—		—		—		596
Total	$	582,118	$	416,136	$	154,375	$	257,738	$	224,365	$	180,174	$	506,083	$	—	$	2,320,989
Gross Charge-Offs	$	—	$	—	$	85	$	2,075	$	1,231	$	9,637	$	2,493	$	—	$	15,521
Consumer
Risk Ratings:
Pass	$	16,392	$	13,716	$	9,603	$	19,441	$	15,123	$	36,026	$	72,246	$	—	$	182,547
Special Mention	15		33		—		2		—		12		168		—		230
Substandard	4		13		23		2,261		—		461		50		—		2,812
Doubtful	—		—		—		—		—		—		—		—		—
Total	$	16,411	$	13,762	$	9,626	$	21,704	$	15,123	$	36,499	$	72,464	$	—	$	185,589
Gross Charge-Offs	$	842	$	201	$	62	$	1,294	$	108	$	42	$	238	$	—	$	2,787
Consolidated
Total	$	2,103,118	$	1,690,049	$	908,423	$	1,991,362	$	1,718,492	$	2,717,786	$	1,401,340	$	97,414	$	12,627,984
Gross Charge-Offs	$	842	$	201	$	262	$	3,752	$	1,573	$	10,642	$	2,750	$	—	$	20,022


	December 31, 2024
(In thousands)	2024		2023		2022		2021		2020		Prior		Revolving		Revolving Converted to Term		Total
Construction and Land Development
Risk Ratings:
Pass	$	113,993	$	160,801	$	161,122	$	39,276	$	8,547	$	36,342	$	126,659	$	—	$	646,740
Special Mention	—		—		—		—		—		75		—		—		75
Substandard	—		—		183		90		—		965		—		—		1,238
Doubtful	—		—		—		—		—		—		—		—		—
Total	$	113,993	$	160,801	$	161,305	$	39,366	$	8,547	$	37,382	$	126,659	$	—	$	648,053
Gross Charge-Offs	$	—	$	—	$	—	$	—	$	—	$	1	$	—	$	—	$	1
CRE - owner occupied
Risk Ratings:
Pass	$	184,312	$	139,197	$	260,266	$	257,711	$	153,702	$	628,391	$	20,674	$	—	$	1,644,253
Special Mention	—		—		4,975		2,344		2,418		7,965		1		—		17,703
Substandard	89		1,061		2,821		377		5,870		14,106		349		—		24,673
Doubtful	—		—		—		—		—		—		—		—		—
Total	$	184,401	$	140,258	$	268,062	$	260,432	$	161,990	$	650,462	$	21,024	$	—	$	1,686,629
Gross Charge-Offs	$	—	$	—	$	179	$	—	$	—	$	162	$	—	$	—	$	341


	December 31, 2024
(In thousands)	2024		2023		2022		2021		2020		Prior		Revolving		Revolving Converted to Term		Total
CRE - non-owner occupied
Risk Ratings:
Pass	$	495,361	$	236,306	$	820,739	$	581,892	$	237,777	$	1,012,209	$	24,752	$	—	$	3,409,036
Special Mention	27		—		4,773		1,269		5,265		25,245		—		—		36,579
Substandard	—		—		10,462		10,684		16,437		20,610		—		—		58,193
Doubtful	—		—		—		—		—		—		—		—		—
Total	$	495,388	$	236,306	$	835,974	$	593,845	$	259,479	$	1,058,064	$	24,752	$	—	$	3,503,808
Gross Charge-Offs	$	—	$	—	$	—	$	—	$	89	$	1,396	$	—	$	—	$	1,485
Residential real estate
Risk Ratings:
Pass	$	93,644	$	146,836	$	469,071	$	630,378	$	152,116	$	483,150	$	517,136	$	96,256	$	2,588,587
Special Mention	—		—		—		—		—		164		3,434		22		3,620
Substandard	149		—		4,706		1,212		83		6,767		9,440		2,221		24,578
Doubtful	—		—		—		—		—		—		—		—		—
Total	$	93,793	$	146,836	$	473,777	$	631,590	$	152,199	$	490,081	$	530,010	$	98,499	$	2,616,785
Gross Charge-Offs	$	—	$	—	$	—	$	—	$	40	$	62	$	32	$	—	$	134
Commercial and financial
Risk Ratings:
Pass	$	373,569	$	180,423	$	253,120	$	232,427	$	82,964	$	117,276	$	362,701	$	—	$	1,602,480
Special Mention	—		382		755		2,839		232		1,904		2,163		—		8,275
Substandard	—		115		8,547		9,810		6,147		10,604		5,376		—		40,599
Doubtful	—		—		—		—		—		—		—		—		—
Total	$	373,569	$	180,920	$	262,422	$	245,076	$	89,343	$	129,784	$	370,240	$	—	$	1,651,354
Gross Charge-Offs	$	—	$	—	$	2,762	$	10,669	$	—	$	3,111	$	1,074	$	—	$	17,616
Consumer
Risk Ratings:
Pass	$	14,627	$	14,049	$	26,332	$	20,721	$	11,682	$	30,022	$	67,562	$	—	$	184,995
Special Mention	—		5		1		—		—		—		54		—		60
Substandard	75		25		4,953		40		2,435		737		1		—		8,266
Doubtful	—		—		—		—		—		—		—		—		—
Total	$	14,702	$	14,079	$	31,286	$	20,761	$	14,117	$	30,759	$	67,617	$	—	$	193,321
Gross Charge-Offs	$	789	$	457	$	5,471	$	4,828	$	255	$	221	$	267	$	—	$	12,288
Consolidated
Total	$	1,275,846	$	879,200	$	2,032,826	$	1,791,070	$	685,675	$	2,396,532	$	1,140,302	$	98,499	$	10,299,950
Gross Charge-Offs	$	789	$	457	$	8,412	$	15,497	$	384	$	4,953	$	1,373	$	—	$	31,865

Troubled Borrower Modifications

The following tables present the amortized cost of TBM loans that were modified during the years ended December 31, 2025, 2024, and 2023.


	December 31, 2025
(In thousands)	Rate Reduction or Rate Reduction with Term Extension		Term Extension and/or Payment Delay		Total1		% of Total Class of Loans
Construction and land development	$	—	$	2,977	$	2,977	0.41	%
CRE - owner occupied	$	56	$	261	$	317	0.02	%
CRE - non-owner occupied	—		2,612		2,612		0.06
Residential real estate	—		295		295		0.01
Commercial and financial	65		3,995		4,060		0.17
Consumer	—		3		3		—
Totals	$	121	$	10,143	$	10,264	0.08	%
1At December 31, 2025, there were $0.5 million in unfunded lending related commitments associated with TBMs.


	December 31, 2024
(In thousands)	Rate Reduction or Rate Reduction with Term Extension		Term Extension and/or Payment Delay1		Total1		% of Total Class of Loans
Construction and land development	$	—	$	115	$	115	0.02	%
CRE - owner occupied	2,945		—		2,945		0.17
CRE - non-owner occupied	174		—		174		—
Residential real estate	112		360		472		0.02
Commercial and financial	2,450		1,820		4,270		0.26
Consumer2	—		71		71		0.04
Totals	$	5,681	$	2,366	$	8,047	0.08	%
1At December 31, 2024, there were no unfunded lending related commitments associated with TBMs. 2Excludes $0.8 million of consumer TBMs held for sale, with term extensions and/or payment delays.


	December 31, 2023
(In thousands)	Term Extension and/or Payment Delay1		% of Total Class of Loans



Residential real estate	$	818	0.03	%
Commercial and financial	12,711		0.79
Consumer	3,988		1.59
Totals	$	17,517	0.17	%
1At December 31, 2023, there were no unfunded lending related commitments associated with TBMs.

The following tables present the payment status of TBM loans that were modified in the twelve months prior to December 31, 2025, the twelve months prior to December 31, 2024, and the twelve months prior to December 31, 2023.


	December 31, 2025
(In thousands)	Current		Accruing 30-59 Days Past Due		Accruing 60-89 Days Past Due		Accruing Greater Than 90 Days		Nonaccrual		Total
Construction and land development	$	2,977	$	—	$	—	$	—	$	—	$	2,977
CRE - owner occupied	$	317	$	—	$	—	$	—	$	—	$	317
CRE - non-owner occupied	—		—		—		—		2,612		2,612
Residential real estate	114		—		—		—		181		295
Commercial and financial	3,243		—		—		—		817		4,060
Consumer	—		—		—		—		3		3
Totals	$	6,651	$	—	$	—	$	—	$	3,613	$	10,264


	December 31, 2024
(In thousands)	Current		Accruing 30-59 Days Past Due		Accruing 60-89 Days Past Due		Accruing Greater Than 90 Days		Nonaccrual		Total
Construction and land development	$	115	$	—	$	—	$	—	$	—	$	115
CRE - owner occupied	$	—	$	—	$	—	$	—	$	2,945	$	2,945
CRE - non-owner occupied	$	—	$	—	$	—	$	—	$	174	$	174
Residential real estate	$	142	$	—	$	—	$	—	$	330	$	472
Commercial and financial	1,878		—		—		—		2,393		4,271
Consumer1	—		—		—		—		71		71
Totals	$	2,134	$	—	$	—	$	—	$	5,913	$	8,047
1Excludes $0.8 million of consumer TBMs held for sale, with term extensions and/or payment delays.


	December 31, 2023
(In thousands)	Current		Accruing 30-59 Days Past Due		Accruing 60-89 Days Past Due		Accruing Greater Than 90 Days		Nonaccrual		Total



Residential real estate	$	596	$	—	$	—	$	—	$	222	$	818
Commercial and financial	244		—		—		—		12,467		12,711
Consumer	3,166		211		156		143		312		3,988
Totals	$	4,006	$	211	$	156	$	143	$	13,001	$	17,517

TBM loans that experienced a payment default during the years ending December 31, 2025, December 31, 2024, and December 31, 2023 and that were modified in the 12 months preceding the default were immaterial as of December 31, 2025, December 31, 2024, and December 31, 2023 respectively.