XML 20 R14.htm IDEA: XBRL DOCUMENT v3.25.2
Loans Held for Investment and Allowance for Credit Losses on Loans
 6 Months Ended
Jun. 30, 2025
Receivables [Abstract]  
Loans Held for Investment and Allowance for Credit Losses on Loans

(4) LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR CREDIT LOSSES ON LOANS

 

Loans held for investment are summarized by portfolio segment as follows:

 

June 30, 2025

 

 

December 31, 2024

 

 

(Dollars in thousands)

 

  Real estate:

 

 

 

 

 

    Commercial real estate owner occupied

 

937,426

 

 

 

931,709

 

    Commercial real estate non-owner occupied

 

1,674,229

 

 

 

1,578,483

 

    Construction and development < 60 months

 

684,291

 

 

 

756,662

 

    Construction residential real estate < 60 months

 

235,032

 

 

 

250,373

 

    Residential real estate first lien

 

1,462,758

 

 

 

1,431,265

 

    Residential real estate all other

 

291,362

 

 

 

275,461

 

    Agriculture

 

447,984

 

 

 

449,190

 

  Commercial non-real estate

 

1,427,576

 

 

 

1,363,462

 

  Consumer non-real estate

 

481,725

 

 

 

478,647

 

  Oil and gas

 

472,105

 

 

 

509,858

 

           Total (1)

$

8,114,488

 

 

$

8,025,110

 

(1) Excludes accrued interest receivable of $40.9 million at June 30, 2025 and $40.9 million at December 31, 2024, that is recorded in accrued interest receivable and other assets.

 

 

 

The Company's loans are currently 83% held by BancFirst and 17% held by Pegasus and Worthington. In addition, approximately 71% of the Company's loans are secured by real estate. Credit risk on loans is managed through limits on amounts loaned to individual and related borrowers, underwriting standards and loan monitoring procedures. The amounts and types of collateral obtained, if any, to secure loans are based upon the Company’s underwriting standards and management’s credit evaluation. Collateral varies, but may include real estate, equipment, accounts receivable, inventory, livestock and/or securities. The Company’s interest in collateral is secured through filing mortgages and liens, or by possession of the collateral.

 

The Company's portfolio segment descriptions and the weighted average remaining life of portfolio segments are disclosed in Note (5) to the Company's Annual Report on Form 10-K for the year ended December 31, 2024.

Other Real Estate Owned and Repossessed Assets and Loan Modifications

The following is a summary of other real estate owned ("OREO") and repossessed assets:

 

 

 

 

 

 

 

 

 

June 30, 2025

 

 

December 31, 2024

 

 

 

(Dollars in thousands)

 

Other real estate owned and repossessed assets

 

$

53,022

 

 

$

33,665

 

 

During the six months ended June 30, 2025 the Company foreclosed on a construction and development real estate loan and recorded $15.6 million in OREO, which was the primary reason for the increase in OREO.

In addition, as of both June 30, 2025 and December 31, 2024, OREO included a commercial real estate property recorded at approximately $30.7 million and $28.1 million, respectively. The increase for this commercial real estate property was due to tenant improvements during the six months ended June 30, 2025. Rental income for this property is included in other noninterest income on the consolidated statements of comprehensive income. Operating expense for this property is included in net expense from other real estate owned in noninterest expense on the consolidated statements of comprehensive income.

This property had the following rental income and operating expenses for the periods presented.

 

 

 

Three Months Ended
June 30,

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

(Dollars in thousands)

 

Rental income

 

$

3,202

 

 

$

3,085

 

 

$

6,323

 

 

$

6,026

 

Operating expense

 

 

2,673

 

 

 

2,673

 

 

 

5,297

 

 

 

4,923

 

 

During the six months ended June 30, 2025, the Company sold property held in other real estate owned for a total loss of $79,000, compared to a total gain of $1.3 million in the six months ended June 30, 2024.

The Company charges interest on principal balances outstanding on modified loans during deferral periods. The current and future financial effects of the recorded balance of loans considered to be modified during the period were not material. The recorded balance of loans modified during the six months ended June 30, 2025 was approximately $3.6 million compared to $14.8 million during the year ended December 31, 2024.

Nonaccrual loans

The Company did not recognize any interest income on nonaccrual loans for either the six months ended June 30, 2025 or 2024. In addition, all loans identified as nonaccrual loans have related allowances for credit losses at June 30, 2025 and December 31, 2024, respectively. Had nonaccrual loans performed in accordance with their original contractual terms, the Company would have recognized additional interest income of approximately $2.3 million for the six months ended June 30, 2025 and approximately $1.8 million for the six months ended June 30, 2024.

Nonaccrual loans guaranteed by government agencies totaled approximately $9.5 million at June 30, 2025 and approximately $9.0 million at December 31, 2024.

The following table is a summary of amounts included in nonaccrual loans, segregated by portfolio segment.

 

 

June 30, 2025

 

 

December 31, 2024

 

 

 

(Dollars in thousands)

 

  Real estate:

 

 

 

 

 

 

Commercial real estate owner occupied

 

$

7,347

 

 

$

7,957

 

Commercial real estate non-owner occupied

 

 

21,857

 

 

 

8,913

 

Construction and development < 60 months

 

 

1,318

 

 

 

20,445

 

Construction residential real estate < 60 months

 

 

1,881

 

 

 

1,481

 

Residential real estate first lien

 

 

5,138

 

 

 

5,193

 

Residential real estate all other

 

 

828

 

 

 

653

 

Agriculture

 

 

1,754

 

 

 

2,047

 

  Commercial non-real estate

 

 

6,914

 

 

 

8,552

 

  Consumer non-real estate

 

 

1,151

 

 

 

1,028

 

  Oil and gas

 

 

1,690

 

 

 

1,715

 

Total

 

$

49,878

 

 

$

57,984

 

 

Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. The following tables present an age analysis of the Company's loans held for investment:

 

 

Age Analysis of Past Due Loans

 

 

 

30-59
Days
Past Due

 

 

60-89
Days
Past Due

 

 

90 Days
and
Greater

 

 

Total
Past Due
Loans

 

 

Current
Loans

 

 

Total Loans

 

 

Accruing
Loans 90
Days or
More
Past Due

 

 

 

(Dollars in thousands)

 

As of June 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate owner occupied

 

$

525

 

 

$

33

 

 

$

6,750

 

 

$

7,308

 

 

$

930,118

 

 

$

937,426

 

 

$

514

 

Commercial real estate non-owner occupied

 

 

1,691

 

 

 

103

 

 

 

17,844

 

 

 

19,638

 

 

 

1,654,591

 

 

 

1,674,229

 

 

 

—

 

Construction and development < 60 months

 

 

753

 

 

 

2,361

 

 

 

1,185

 

 

 

4,299

 

 

 

679,992

 

 

 

684,291

 

 

 

16

 

Construction residential real estate < 60 months

 

 

—

 

 

 

—

 

 

 

1,068

 

 

 

1,068

 

 

 

233,964

 

 

 

235,032

 

 

 

—

 

Residential real estate first lien

 

 

8,090

 

 

 

1,850

 

 

 

4,884

 

 

 

14,824

 

 

 

1,447,934

 

 

 

1,462,758

 

 

 

2,470

 

Residential real estate all other

 

 

865

 

 

 

254

 

 

 

681

 

 

 

1,800

 

 

 

289,562

 

 

 

291,362

 

 

 

595

 

Agriculture

 

 

1,318

 

 

 

232

 

 

 

1,632

 

 

 

3,182

 

 

 

444,802

 

 

 

447,984

 

 

 

620

 

  Commercial non-real estate

 

 

4,496

 

 

 

810

 

 

 

6,821

 

 

 

12,127

 

 

 

1,415,449

 

 

 

1,427,576

 

 

 

2,819

 

  Consumer non-real estate

 

 

2,915

 

 

 

1,203

 

 

 

1,313

 

 

 

5,431

 

 

 

476,294

 

 

 

481,725

 

 

 

481

 

  Oil and gas

 

 

827

 

 

 

491

 

 

 

1,686

 

 

 

3,004

 

 

 

469,101

 

 

 

472,105

 

 

 

—

 

Total

 

$

21,480

 

 

$

7,337

 

 

$

43,864

 

 

$

72,681

 

 

$

8,041,807

 

 

$

8,114,488

 

 

$

7,515

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate owner occupied

 

$

2,810

 

 

$

273

 

 

$

7,963

 

 

$

11,046

 

 

$

920,663

 

 

$

931,709

 

 

$

569

 

Commercial real estate non-owner occupied

 

 

603

 

 

 

16,871

 

 

 

610

 

 

 

18,084

 

 

 

1,560,399

 

 

 

1,578,483

 

 

 

41

 

Construction and development < 60 months

 

 

317

 

 

 

351

 

 

 

20,327

 

 

 

20,995

 

 

 

735,667

 

 

 

756,662

 

 

 

116

 

Construction residential real estate < 60 months

 

 

292

 

 

 

622

 

 

 

616

 

 

 

1,530

 

 

 

248,843

 

 

 

250,373

 

 

 

—

 

Residential real estate first lien

 

 

9,128

 

 

 

2,118

 

 

 

3,332

 

 

 

14,578

 

 

 

1,416,687

 

 

 

1,431,265

 

 

 

797

 

Residential real estate all other

 

 

1,498

 

 

 

559

 

 

 

828

 

 

 

2,885

 

 

 

272,576

 

 

 

275,461

 

 

 

370

 

Agriculture

 

 

1,569

 

 

 

1,357

 

 

 

5,691

 

 

 

8,617

 

 

 

440,573

 

 

 

449,190

 

 

 

4,754

 

  Commercial non-real estate

 

 

4,325

 

 

 

1,019

 

 

 

5,983

 

 

 

11,327

 

 

 

1,352,135

 

 

 

1,363,462

 

 

 

356

 

  Consumer non-real estate

 

 

3,748

 

 

 

907

 

 

 

1,173

 

 

 

5,828

 

 

 

472,819

 

 

 

478,647

 

 

 

504

 

  Oil and gas

 

 

1,111

 

 

 

458

 

 

 

232

 

 

 

1,801

 

 

 

508,057

 

 

 

509,858

 

 

 

232

 

Total

 

$

25,401

 

 

$

24,535

 

 

$

46,755

 

 

$

96,691

 

 

$

7,928,419

 

 

$

8,025,110

 

 

$

7,739

 

 

Credit Quality Indicators

The Company considers credit quality indicators to monitor the credit risk in the loan portfolio including volume and severity of loan delinquencies, nonaccrual loans, internal grading of loans, historical credit loss experience and economic conditions. These indicators are reviewed and updated regularly throughout the year. An internal risk grading system is used to indicate the credit risk of loans. The loan grades used by the Company are for internal risk identification purposes and do not directly correlate to regulatory classification categories or any financial reporting definitions. The general characteristics of the risk grades and the table summarizing the Company’s gross loans held for investment by year of origination and internally assigned credit grades as of December 31, 2024, are disclosed in Note (5) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

The Company’s revolving loans that are converted to term loans are not material and therefore have not been presented.

The following table summarizes the Company’s gross loans held for investment by year of origination and internally assigned credit grades:

 

 

 

 

Term Loans Amortized Cost Basis by Origination Year

 

 

Revolving Loans

 

 

 

 

(Dollars in thousands)

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

Prior

 

 

Amortized Cost Basis

 

 

Total

 

As of June 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Commercial real estate owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 1

 

$

46,987

 

 

$

72,680

 

 

$

103,525

 

 

$

126,529

 

 

$

89,591

 

 

$

184,795

 

 

$

12,575

 

 

$

636,682

 

Grade 2

 

 

37,790

 

 

 

35,379

 

 

 

32,027

 

 

 

47,992

 

 

 

46,707

 

 

 

57,105

 

 

 

7,354

 

 

 

264,354

 

Grade 3

 

 

386

 

 

 

13,853

 

 

 

10,990

 

 

 

3,054

 

 

 

2,244

 

 

 

1,865

 

 

 

138

 

 

 

32,530

 

Grade 4

 

 

—

 

 

 

243

 

 

 

599

 

 

 

153

 

 

 

558

 

 

 

2,307

 

 

 

—

 

 

 

3,860

 

Total commercial real estate owner occupied

 

 

85,163

 

 

 

122,155

 

 

 

147,141

 

 

 

177,728

 

 

 

139,100

 

 

 

246,072

 

 

 

20,067

 

 

 

937,426

 

 Commercial real estate non-owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 1

 

$

94,690

 

 

$

115,357

 

 

$

256,328

 

 

$

284,008

 

 

$

155,649

 

 

$

168,459

 

 

$

29,140

 

 

$

1,103,631

 

Grade 2

 

 

53,516

 

 

 

82,637

 

 

 

114,315

 

 

 

133,489

 

 

 

64,902

 

 

 

82,708

 

 

 

13,927

 

 

 

545,494

 

Grade 3

 

 

4,179

 

 

 

—

 

 

 

—

 

 

 

943

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,122

 

Grade 4

 

 

—

 

 

 

19,467

 

 

 

121

 

 

 

64

 

 

 

273

 

 

 

57

 

 

 

—

 

 

 

19,982

 

Total commercial real estate non-owner occupied

 

 

152,385

 

 

 

217,461

 

 

 

370,764

 

 

 

418,504

 

 

 

220,824

 

 

 

251,224

 

 

 

43,067

 

 

 

1,674,229

 

 Construction and development < 60 months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 1

 

$

68,650

 

 

$

102,545

 

 

$

101,111

 

 

$

108,571

 

 

$

7,853

 

 

$

13,230

 

 

$

31,451

 

 

$

433,411

 

Grade 2

 

 

97,774

 

 

 

57,984

 

 

 

34,458

 

 

 

30,861

 

 

 

608

 

 

 

15,252

 

 

 

8,908

 

 

 

245,845

 

Grade 3

 

 

2,588

 

 

 

483

 

 

 

123

 

 

 

36

 

 

 

346

 

 

 

125

 

 

 

—

 

 

 

3,701

 

Grade 4

 

 

61

 

 

 

—

 

 

 

18

 

 

 

816

 

 

 

303

 

 

 

136

 

 

 

—

 

 

 

1,334

 

Total construction and development < 60 months

 

 

169,073

 

 

 

161,012

 

 

 

135,710

 

 

 

140,284

 

 

 

9,110

 

 

 

28,743

 

 

 

40,359

 

 

 

684,291

 

 Construction residential real estate < 60 months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 1

 

$

69,559

 

 

$

50,902

 

 

$

7,351

 

 

$

4,780

 

 

$

88

 

 

$

1,749

 

 

$

3,847

 

 

$

138,276

 

Grade 2

 

 

51,610

 

 

 

33,149

 

 

 

1,163

 

 

 

752

 

 

 

—

 

 

 

—

 

 

 

7,112

 

 

 

93,786

 

Grade 3

 

 

769

 

 

 

320

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,089

 

Grade 4

 

 

813

 

 

 

745

 

 

 

117

 

 

 

206

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,881

 

Total construction residential real estate < 60 months

 

 

122,751

 

 

 

85,116

 

 

 

8,631

 

 

 

5,738

 

 

 

88

 

 

 

1,749

 

 

 

10,959

 

 

 

235,032

 

 Residential real estate first lien

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 1

 

$

126,178

 

 

$

216,760

 

 

$

182,841

 

 

$

183,960

 

 

$

134,645

 

 

$

237,448

 

 

$

4,914

 

 

$

1,086,746

 

Grade 2

 

 

38,500

 

 

 

76,142

 

 

 

55,034

 

 

 

50,662

 

 

 

39,334

 

 

 

64,838

 

 

 

17,014

 

 

 

341,524

 

Grade 3

 

 

3,873

 

 

 

5,302

 

 

 

3,922

 

 

 

2,792

 

 

 

2,726

 

 

 

5,738

 

 

 

—

 

 

 

24,353

 

Grade 4

 

 

81

 

 

 

3,890

 

 

 

1,163

 

 

 

853

 

 

 

1,817

 

 

 

2,331

 

 

 

—

 

 

 

10,135

 

Total residential real estate first lien

 

 

168,632

 

 

 

302,094

 

 

 

242,960

 

 

 

238,267

 

 

 

178,522

 

 

 

310,355

 

 

 

21,928

 

 

 

1,462,758

 

 Residential real estate all other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 1

 

$

18,436

 

 

$

32,547

 

 

$

22,572

 

 

$

17,121

 

 

$

4,829

 

 

$

14,150

 

 

$

53,812

 

 

$

163,467

 

Grade 2

 

 

3,461

 

 

 

6,586

 

 

 

5,321

 

 

 

3,761

 

 

 

1,174

 

 

 

4,928

 

 

 

95,954

 

 

 

121,185

 

Grade 3

 

 

453

 

 

 

615

 

 

 

480

 

 

 

124

 

 

 

221

 

 

 

383

 

 

 

2,025

 

 

 

4,301

 

Grade 4

 

 

419

 

 

 

68

 

 

 

144

 

 

 

117

 

 

 

16

 

 

 

180

 

 

 

1,465

 

 

 

2,409

 

Total residential real estate all other

 

 

22,769

 

 

 

39,816

 

 

 

28,517

 

 

 

21,123

 

 

 

6,240

 

 

 

19,641

 

 

 

153,256

 

 

 

291,362

 

 Agriculture

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 1

 

$

26,222

 

 

$

31,946

 

 

$

34,820

 

 

$

33,569

 

 

$

24,882

 

 

$

52,665

 

 

$

51,487

 

 

$

255,591

 

Grade 2

 

 

28,619

 

 

 

31,678

 

 

 

21,831

 

 

 

16,658

 

 

 

11,838

 

 

 

23,148

 

 

 

37,213

 

 

 

170,985

 

Grade 3

 

 

964

 

 

 

1,158

 

 

 

1,905

 

 

 

2,550

 

 

 

1,287

 

 

 

4,260

 

 

 

6,470

 

 

 

18,594

 

Grade 4

 

 

31

 

 

 

793

 

 

 

413

 

 

 

758

 

 

 

325

 

 

 

369

 

 

 

125

 

 

 

2,814

 

Total Agriculture

 

 

55,836

 

 

 

65,575

 

 

 

58,969

 

 

 

53,535

 

 

 

38,332

 

 

 

80,442

 

 

 

95,295

 

 

 

447,984

 

 Commercial non-real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 1

 

$

91,468

 

 

$

119,790

 

 

$

83,645

 

 

$

118,094

 

 

$

87,175

 

 

$

61,279

 

 

$

350,751

 

 

$

912,202

 

Grade 2

 

 

68,090

 

 

 

69,535

 

 

 

65,733

 

 

 

26,150

 

 

 

10,115

 

 

 

7,364

 

 

 

222,337

 

 

 

469,324

 

Grade 3

 

 

774

 

 

 

1,283

 

 

 

1,600

 

 

 

1,024

 

 

 

328

 

 

 

171

 

 

 

36,378

 

 

 

41,558

 

Grade 4

 

 

776

 

 

 

536

 

 

 

1,036

 

 

 

1,051

 

 

 

156

 

 

 

303

 

 

 

325

 

 

 

4,183

 

Grade 5

 

 

—

 

 

 

—

 

 

 

6

 

 

 

175

 

 

 

3

 

 

 

125

 

 

 

—

 

 

 

309

 

Total commercial non-real estate

 

 

161,108

 

 

 

191,144

 

 

 

152,020

 

 

 

146,494

 

 

 

97,777

 

 

 

69,242

 

 

 

609,791

 

 

 

1,427,576

 

 Consumer non-real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 1

 

$

105,760

 

 

$

138,858

 

 

$

80,119

 

 

$

37,879

 

 

$

16,468

 

 

$

6,264

 

 

$

19,337

 

 

$

404,685

 

Grade 2

 

 

11,788

 

 

 

16,246

 

 

 

12,780

 

 

 

7,176

 

 

 

3,127

 

 

 

1,331

 

 

 

14,638

 

 

 

67,086

 

Grade 3

 

 

591

 

 

 

1,408

 

 

 

1,983

 

 

 

985

 

 

 

613

 

 

 

275

 

 

 

13

 

 

 

5,868

 

Grade 4

 

 

1,833

 

 

 

723

 

 

 

681

 

 

 

494

 

 

 

242

 

 

 

112

 

 

 

1

 

 

 

4,086

 

Total consumer non-real estate

 

 

119,972

 

 

 

157,235

 

 

 

95,563

 

 

 

46,534

 

 

 

20,450

 

 

 

7,982

 

 

 

33,989

 

 

 

481,725

 

 Oil and gas

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 1

 

$

71,743

 

 

$

14,587

 

 

$

10,006

 

 

$

3,822

 

 

$

17,204

 

 

$

2,878

 

 

$

248,947

 

 

$

369,187

 

Grade 2

 

 

37,339

 

 

 

8,812

 

 

 

6,555

 

 

 

3,650

 

 

 

2,675

 

 

 

2,818

 

 

 

39,275

 

 

 

101,124

 

Grade 3

 

 

471

 

 

 

60

 

 

 

68

 

 

 

—

 

 

 

159

 

 

 

50

 

 

 

520

 

 

 

1,328

 

Grade 4

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

58

 

 

 

408

 

 

 

—

 

 

 

466

 

Total oil and gas

 

 

109,553

 

 

 

23,459

 

 

 

16,629

 

 

 

7,472

 

 

 

20,096

 

 

 

6,154

 

 

 

288,742

 

 

 

472,105

 

Total loans held for investment

 

$

1,167,242

 

 

$

1,365,067

 

 

$

1,256,904

 

 

$

1,255,679

 

 

$

730,539

 

 

$

1,021,604

 

 

$

1,317,453

 

 

$

8,114,488

 

 

 

The following tables summarize the Company's gross charge-offs by year of origination for the periods indicated:

 

 

 

Term Loans Amortized Cost Basis by Origination Year

 

 

Revolving Loans

 

 

 

 

 

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

Prior

 

 

Amortized Cost Basis

 

 

Total

 

 

 

(Dollars in thousands)

 

Three months ended June 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Commercial real estate owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

58

 

 

$

58

 

 Commercial real estate non-owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

227

 

 

 

—

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

228

 

 Construction and development < 60 months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,741

 

 

 

—

 

 

 

—

 

 

 

3,741

 

 Construction residential real estate < 60 months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 Residential real estate first lien

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

—

 

 

 

1

 

 

 

1

 

 

 

—

 

 

 

3

 

 

 

—

 

 

 

5

 

 Residential real estate all other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

7

 

 

 

7

 

 Agriculture

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

1

 

 

 

2

 

 

 

—

 

 

 

4

 

 

 

—

 

 

 

—

 

 

 

7

 

 Commercial non-real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

5

 

 

 

6

 

 

 

127

 

 

 

94

 

 

 

14

 

 

 

238

 

 

 

42

 

 

 

526

 

 Consumer non-real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

25

 

 

 

90

 

 

 

247

 

 

 

80

 

 

 

6

 

 

 

41

 

 

 

5

 

 

 

494

 

 Oil and gas

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total current-period gross charge-offs

 

$

30

 

 

$

324

 

 

$

377

 

 

$

176

 

 

$

3,765

 

 

$

282

 

 

$

112

 

 

$

5,066

 

 

 

 

Term Loans Amortized Cost Basis by Origination Year

 

 

Revolving Loans

 

 

 

 

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

Prior

 

 

Amortized Cost Basis

 

 

Total

 

 

 

(Dollars in thousands)

 

Three months ended June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Commercial real estate owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 Commercial real estate non-owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1

 

 Construction and development < 60 months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 Construction residential real estate < 60 months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 Residential real estate first lien

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

2

 

 

 

23

 

 

 

—

 

 

 

2

 

 

 

4

 

 

 

36

 

 

 

—

 

 

 

67

 

 Residential real estate all other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 Agriculture

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

—

 

 

 

6

 

 

 

13

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

19

 

 Commercial non-real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

6

 

 

 

155

 

 

 

43

 

 

 

8

 

 

 

—

 

 

 

190

 

 

 

378

 

 

 

780

 

 Consumer non-real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

21

 

 

 

256

 

 

 

150

 

 

 

28

 

 

 

21

 

 

 

30

 

 

 

4

 

 

 

510

 

 Oil and gas

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total current-period gross charge-offs

 

$

29

 

 

$

434

 

 

$

199

 

 

$

52

 

 

$

25

 

 

$

256

 

 

$

382

 

 

$

1,377

 

 

 

 

 

 

 

Term Loans Amortized Cost Basis by Origination Year

 

 

Revolving Loans

 

 

 

 

 

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

Prior

 

 

Amortized Cost Basis

 

 

Total

 

 

 

(Dollars in thousands)

 

Six months ended June 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Commercial real estate owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

17

 

 

$

6

 

 

$

—

 

 

$

58

 

 

$

81

 

 Commercial real estate non-owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

227

 

 

 

—

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

228

 

 Construction and development < 60 months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,744

 

 

 

—

 

 

 

—

 

 

 

3,744

 

 Construction residential real estate < 60 months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

25

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

25

 

 Residential real estate first lien

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

6

 

 

 

3

 

 

 

2

 

 

 

5

 

 

 

40

 

 

 

—

 

 

 

56

 

 Residential real estate all other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

13

 

 

 

13

 

 Agriculture

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

10

 

 

 

2

 

 

 

—

 

 

 

5

 

 

 

—

 

 

 

17

 

 

 

34

 

 Commercial non-real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

24

 

 

 

16

 

 

 

148

 

 

 

127

 

 

 

47

 

 

 

310

 

 

 

55

 

 

 

727

 

 Consumer non-real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

25

 

 

 

247

 

 

 

471

 

 

 

134

 

 

 

12

 

 

 

47

 

 

 

5

 

 

 

941

 

 Oil and gas

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total current-period gross charge-offs

 

$

49

 

 

$

531

 

 

$

624

 

 

$

281

 

 

$

3,819

 

 

$

397

 

 

$

148

 

 

$

5,849

 

 

 

 

 

 

Term Loans Amortized Cost Basis by Origination Year

 

 

Revolving Loans

 

 

 

 

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

Prior

 

 

Amortized Cost Basis

 

 

Total

 

 

 

(Dollars in thousands)

 

Six months ended June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Commercial real estate owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

15

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

15

 

 Commercial real estate non-owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

12

 

 

 

—

 

 

 

1

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

14

 

 Construction and development < 60 months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 Construction residential real estate < 60 months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

3

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3

 

 Residential real estate first lien

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

3

 

 

 

23

 

 

 

—

 

 

 

3

 

 

 

4

 

 

 

57

 

 

 

—

 

 

 

90

 

 Residential real estate all other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2

 

 

 

27

 

 

 

29

 

 Agriculture

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

—

 

 

 

37

 

 

 

13

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

50

 

 Commercial non-real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

6

 

 

 

1,156

 

 

 

318

 

 

 

140

 

 

 

12

 

 

 

316

 

 

 

1,886

 

 

 

3,834

 

 Consumer non-real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

21

 

 

 

500

 

 

 

247

 

 

 

79

 

 

 

34

 

 

 

45

 

 

 

15

 

 

 

941

 

 Oil and gas

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

9

 

 

 

83

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

92

 

Total current-period gross charge-offs

 

$

30

 

 

$

1,703

 

 

$

685

 

 

$

251

 

 

$

51

 

 

$

420

 

 

$

1,928

 

 

$

5,068

 

 

 

Allowance for Credit Losses Methodology

 

The Company determines its provision for credit losses and allowance for credit losses using the current expected credit loss methodology that is referred to as the current expected credit loss ("CECL") model. The allowance for current expected credit losses is measured on a collective (pool) basis when similar risk characteristics exist. The allowance for credit losses methodology is disclosed in Note (5) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

 

 

The following tables detail activity in the allowance for credit losses on loans for the periods presented. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

 

 

Allowance for Credit Losses

 

 

 

Balance at
beginning of
period

 

 

Charge-
offs

 

 

Recoveries

 

 

Net
charge-offs

 

 

Provision for /(benefit from) credit losses on loans

 

 

Balance at
end of
period

 

 

 

(Dollars in thousands)

 

Three Months Ended June 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate owner occupied

 

$

6,991

 

 

$

(58

)

 

$

2

 

 

$

(56

)

 

$

313

 

 

$

7,248

 

Commercial real estate non-owner occupied

 

 

33,753

 

 

 

(228

)

 

 

—

 

 

 

(228

)

 

 

1,692

 

 

 

35,217

 

Construction and development < 60 months

 

 

8,613

 

 

 

(3,741

)

 

 

6

 

 

 

(3,735

)

 

 

29

 

 

 

4,907

 

Construction residential real estate < 60 months

 

 

2,282

 

 

 

—

 

 

 

3

 

 

 

3

 

 

 

(20

)

 

 

2,265

 

Residential real estate first lien

 

 

4,666

 

 

 

(5

)

 

 

9

 

 

 

4

 

 

 

(25

)

 

 

4,645

 

Residential real estate all other

 

 

1,790

 

 

 

(7

)

 

 

—

 

 

 

(7

)

 

 

38

 

 

 

1,821

 

Agriculture

 

 

5,776

 

 

 

(7

)

 

 

7

 

 

 

—

 

 

 

(645

)

 

 

5,131

 

  Commercial non-real estate

 

 

23,877

 

 

 

(526

)

 

 

250

 

 

 

(276

)

 

 

446

 

 

 

24,047

 

  Consumer non-real estate

 

 

4,820

 

 

 

(494

)

 

 

83

 

 

 

(411

)

 

 

428

 

 

 

4,837

 

  Oil and gas

 

 

7,887

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,017

)

 

 

6,870

 

Total

 

$

100,455

 

 

$

(5,066

)

 

$

360

 

 

$

(4,706

)

 

$

1,239

 

 

$

96,988

 

 

 

 

 

Allowance for Credit Losses

 

 

 

Balance at
beginning of
period

 

 

Charge-
offs

 

 

Recoveries

 

 

Net
charge-offs

 

 

Provision for /(benefit from) credit losses on loans

 

 

Balance at
end of
period

 

 

 

(Dollars in thousands)

 

Three Months Ended June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate owner occupied

 

$

7,468

 

 

$

—

 

 

$

11

 

 

$

11

 

 

$

(109

)

 

$

7,370

 

Commercial real estate non-owner occupied

 

 

33,180

 

 

 

(1

)

 

 

—

 

 

 

(1

)

 

 

688

 

 

 

33,867

 

Construction and development < 60 months

 

 

6,596

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

184

 

 

 

6,780

 

Construction residential real estate < 60 months

 

 

3,464

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

55

 

 

 

3,519

 

Residential real estate first lien

 

 

4,923

 

 

 

(67

)

 

 

21

 

 

 

(46

)

 

 

695

 

 

 

5,572

 

Residential real estate all other

 

 

1,652

 

 

 

—

 

 

 

3

 

 

 

3

 

 

 

74

 

 

 

1,729

 

Agriculture

 

 

6,137

 

 

 

(19

)

 

 

5

 

 

 

(14

)

 

 

(206

)

 

 

5,917

 

  Commercial non-real estate

 

 

20,482

 

 

 

(780

)

 

 

280

 

 

 

(500

)

 

 

1,493

 

 

 

21,475

 

  Consumer non-real estate

 

 

4,335

 

 

 

(510

)

 

 

58

 

 

 

(452

)

 

 

500

 

 

 

4,383

 

  Oil and gas

 

 

9,030

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(16

)

 

 

9,014

 

Total

 

$

97,267

 

 

$

(1,377

)

 

$

378

 

 

$

(999

)

 

$

3,358

 

 

$

99,626

 

 

 

 

 

 

Allowance for Credit Losses

 

 

 

Balance at
beginning of
period

 

 

Charge-
offs

 

 

Recoveries

 

 

Net
charge-offs

 

 

Provision for /(benefit from) credit losses on loans

 

 

Balance at
end of
period

 

 

 

(Dollars in thousands)

 

Six Months Ended June 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate owner occupied

 

$

6,869

 

 

$

(81

)

 

$

41

 

 

$

(40

)

 

$

419

 

 

$

7,248

 

Commercial real estate non-owner occupied

 

 

33,097

 

 

 

(228

)

 

 

—

 

 

 

(228

)

 

 

2,348

 

 

 

35,217

 

Construction and development < 60 months

 

 

8,671

 

 

 

(3,744

)

 

 

6

 

 

 

(3,738

)

 

 

(26

)

 

 

4,907

 

Construction residential real estate < 60 months

 

 

2,336

 

 

 

(25

)

 

 

3

 

 

 

(22

)

 

 

(49

)

 

 

2,265

 

Residential real estate first lien

 

 

4,568

 

 

 

(56

)

 

 

12

 

 

 

(44

)

 

 

121

 

 

 

4,645

 

Residential real estate all other

 

 

1,741

 

 

 

(13

)

 

 

21

 

 

 

8

 

 

 

72

 

 

 

1,821

 

Agriculture

 

 

5,696

 

 

 

(34

)

 

 

18

 

 

 

(16

)

 

 

(549

)

 

 

5,131

 

  Commercial non-real estate

 

 

24,150

 

 

 

(727

)

 

 

375

 

 

 

(352

)

 

 

249

 

 

 

24,047

 

  Consumer non-real estate

 

 

4,833

 

 

 

(941

)

 

 

164

 

 

 

(777

)

 

 

781

 

 

 

4,837

 

  Oil and gas

 

 

7,536

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(666

)

 

 

6,870

 

Total

 

$

99,497

 

 

$

(5,849

)

 

$

640

 

 

$

(5,209

)

 

$

2,700

 

 

$

96,988

 

 

 

 

Allowance for Credit Losses

 

 

 

Balance at
beginning of
period

 

 

Charge-
offs

 

 

Recoveries

 

 

Net
charge-offs

 

 

Provision for /(benefit from) credit losses on loans

 

 

Balance at
end of
period

 

 

 

(Dollars in thousands)

 

Six Months Ended June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate owner occupied

 

$

7,483

 

 

$

(15

)

 

$

31

 

 

$

16

 

 

$

(129

)

 

$

7,370

 

Commercial real estate non-owner occupied

 

 

33,080

 

 

 

(14

)

 

 

—

 

 

 

(14

)

 

 

801

 

 

 

33,867

 

Construction and development < 60 months

 

 

3,950

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,830

 

 

 

6,780

 

Construction residential real estate < 60 months

 

 

3,414

 

 

 

(3

)

 

 

—

 

 

 

(3

)

 

 

108

 

 

 

3,519

 

Residential real estate first lien

 

 

4,914

 

 

 

(90

)

 

 

25

 

 

 

(65

)

 

 

723

 

 

 

5,572

 

Residential real estate all other

 

 

1,646

 

 

 

(29

)

 

 

8

 

 

 

(21

)

 

 

104

 

 

 

1,729

 

Agriculture

 

 

6,137

 

 

 

(50

)

 

 

17

 

 

 

(33

)

 

 

(187

)

 

 

5,917

 

  Commercial non-real estate

 

 

22,745

 

 

 

(3,834

)

 

 

313

 

 

 

(3,521

)

 

 

2,251

 

 

 

21,475

 

  Consumer non-real estate

 

 

4,401

 

 

 

(941

)

 

 

127

 

 

 

(814

)

 

 

796

 

 

 

4,383

 

  Oil and gas

 

 

9,030

 

 

 

(92

)

 

 

—

 

 

 

(92

)

 

 

76

 

 

 

9,014

 

Total

 

$

96,800

 

 

$

(5,068

)

 

$

521

 

 

$

(4,547

)

 

$

7,373

 

 

$

99,626

 

 

 

Purchased Credit Deteriorated Loans

 

The Company has previously purchased loans, for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. The Company did not purchase credit-deteriorated loans during the six month period ended June 30, 2025 or June 30, 2024.

 

Collateral Dependent Loans

A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. During the six months ended June 30, 2025 and 2024, no material amount of interest income was recognized on collateral-dependent loans subsequent to their classification as collateral-dependent. The following tables summarize collateral-dependent gross loans held for investment by collateral type and the related specific allocation as follows:

 

 

 

Collateral Type

 

 

 

 

 

 

 

 

 

Real Estate

 

 

Business Assets

 

 

Other Assets

 

 

Total

 

 

Specific Allocation

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

As of June 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate owner occupied

 

$

1,399

 

 

$

—

 

 

$

—

 

 

$

1,399

 

 

$

283

 

Commercial real estate non-owner occupied

 

 

3,652

 

 

 

—

 

 

 

—

 

 

 

3,652

 

 

 

1,031

 

Construction and development < 60 months

 

 

800

 

 

 

—

 

 

 

—

 

 

 

800

 

 

 

225

 

Construction residential real estate < 60 months

 

 

206

 

 

 

—

 

 

 

—

 

 

 

206

 

 

 

75

 

Residential real estate first lien

 

 

333

 

 

 

—

 

 

 

—

 

 

 

333

 

 

 

99

 

Residential real estate all other

 

 

95

 

 

 

—

 

 

 

—

 

 

 

95

 

 

 

32

 

Agriculture

 

 

79

 

 

 

110

 

 

 

12

 

 

 

201

 

 

 

98

 

  Commercial non-real estate

 

 

—

 

 

 

7,762

 

 

 

25

 

 

 

7,787

 

 

 

1,764

 

  Consumer non-real estate

 

 

—

 

 

 

—

 

 

 

551

 

 

 

551

 

 

 

278

 

  Oil and gas

 

 

—

 

 

 

1,111

 

 

 

—

 

 

 

1,111

 

 

 

110

 

Total collateral-dependent loans held for investment

 

$

6,564

 

 

$

8,983

 

 

$

588

 

 

$

16,135

 

 

$

3,995

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateral Type

 

 

 

 

 

 

 

 

 

Real Estate

 

 

Business Assets

 

 

Other Assets

 

 

Total

 

 

Specific Allocation

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

As of December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate owner occupied

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Commercial real estate non-owner occupied

 

 

7,890

 

 

 

—

 

 

 

—

 

 

 

7,890

 

 

 

879

 

Construction and development < 60 months

 

 

20,142

 

 

 

—

 

 

 

—

 

 

 

20,142

 

 

 

3,755

 

Construction residential real estate < 60 months

 

 

206

 

 

 

—

 

 

 

—

 

 

 

206

 

 

 

75

 

Residential real estate first lien

 

 

300

 

 

 

—

 

 

 

—

 

 

 

300

 

 

 

93

 

Residential real estate all other

 

 

100

 

 

 

—

 

 

 

—

 

 

 

100

 

 

 

34

 

Agriculture

 

 

1,584

 

 

 

110

 

 

 

13

 

 

 

1,707

 

 

 

688

 

  Commercial non-real estate

 

 

—

 

 

 

10,087

 

 

 

108

 

 

 

10,195

 

 

 

2,222

 

  Consumer non-real estate

 

 

—

 

 

 

—

 

 

 

399

 

 

 

399

 

 

 

242

 

  Oil and gas

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total collateral-dependent loans held for investment

 

$

30,222

 

 

$

10,197

 

 

$

520

 

 

$

40,939

 

 

$

7,988

 

Non-Cash Transfers from Loans and Premises and Equipment

Transfers from loans and premises and equipment to OREO and repossessed assets are non-cash transactions, and are not included in the consolidated statements of cash flow.

Transfers from loans and premises and equipment to OREO and repossessed assets during the periods presented are summarized as follows:

 

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

 

(Dollars in thousands)

 

Other real estate owned

 

$

18,122

 

 

$

8,995

 

Repossessed assets

 

 

1,680

 

 

 

1,575

 

Total

 

$

19,802

 

 

$

10,570