Loans and Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2025

Schedule of Amounts Recognized in Balance Sheet

Loans in the accompanying consolidated balance sheets consisted of the following:


(Dollars in thousands)	September 30, 2025			December 31, 2024
Real estate loans:
Non-farm non-residential owner occupied	$	408,996		$	448,134
Non-farm non-residential non-owner occupied		687,924			652,119
Residential		334,583			336,736
Construction, development & other		826,566			871,373
Farmland		25,549			30,915
Commercial & industrial		1,772,045			1,497,408
Consumer		1,291			1,859
Municipal and other		108,162			127,881
		4,165,116			3,966,425
Allowance for credit losses		(42,563	)		(40,304	)
Loans, net	$	4,122,553		$	3,926,121

Schedule of Non-accrual, Non-accrual Without Specifc ACL and Accruing Past Due Loans, Segregated by Class of Loans

Non-accrual loans, non-accrual loans without a specific ACL, and accruing loans past due 90 days or more segregated by class of loans were as follows:


	September 30, 2025						December 31, 2024
(Dollars in thousands)	Non-accrual		Non-accrual loans without a specific ACL		Accruing loans past due more than 90 days		Non-accrual		Non-accrual loans without a specific ACL		Accruing loans past due more than 90 days
Real estate loans:
Non-farm non-residential owner occupied	$	1,237	$	1,237	$	1,943	$	10,433	$	9,757	$	—
Non-farm non-residential non-owner occupied		111		111		—		—		—		—
Residential		214		214		2,030		2,226		2,226		1,169
Construction, development & other		6		6		—		400		—		—
Commercial & industrial		9,155		5,265		7,006		13,714		4,644		4
Municipal and other		—		—		37		—		—		—
	$	10,723	$	6,833	$	11,016	$	26,773	$	16,627	$	1,173

Schedule of Aging Past Due Loans, Segregated by Class of Loans

An age analysis of past due loans, segregated by class of loans, was as follows:


(Dollars in thousands)	30-59 days		60-89 days		Over 90 days		Total past due		Total current		Total loans
September 30, 2025
Real estate loans:
Non-farm non-residential owner occupied	$	6,890	$	—	$	3,180	$	10,070	$	398,926	$	408,996
Non-farm non-residential non-owner occupied		6,886		1,408		111		8,405		679,519		687,924
Residential		1,030		268		2,244		3,542		331,041		334,583
Construction, development & other		—		3,492		6		3,498		823,068		826,566
Farmland		—		—		—		—		25,549		25,549
Commercial & industrial		1,388		1,057		16,161		18,606		1,753,439		1,772,045
Consumer		—		—		—		—		1,291		1,291
Municipal and other		122		822		37		981		107,181		108,162
	$	16,316	$	7,047	$	21,739	$	45,102	$	4,120,014	$	4,165,116


December 31, 2024
Real estate loans:
Non-farm non-residential owner occupied	$	513	$	—	$	10,433	$	10,946	$	437,188	$	448,134
Non-farm non-residential non-owner occupied		—		—		—		—		652,119		652,119
Residential		1,929		404		3,395		5,728		331,008		336,736
Construction, development & other		2,812		—		400		3,212		868,161		871,373
Farmland		—		—		—		—		30,915		30,915
Commercial & industrial		660		383		13,718		14,761		1,482,647		1,497,408
Consumer		—		—		—		—		1,859		1,859
Municipal and other		115		—		—		115		127,766		127,881
	$	6,029	$	787	$	27,946	$	34,762	$	3,931,663	$	3,966,425

Summary of Loans Modified for Borrowers Experiencing Financial Difficulty

For the nine months ended September 30, 2025, one loan was modified for borrowers experiencing financial difficulty. No loans were modified for borrowers experiencing financial difficulty for the year ended December 31, 2024.


	Loan modifications
(Dollars in thousands)	Number of loans		Post- restructured recorded investment		Total Class of Financing Receivable			Principal Forgiveness		Adjusted interest rate			Payment deferral		Combined rate and payment deferral
September 30, 2025
Construction, development & other		1		2,812		0.3	%		—		14.0	%		—		—

Summary of Internal Ratings of Loans

The following tables summarize the Company’s internal ratings of its loans at September 30, 2025 and December 31, 2024:


(Dollars in thousands)	Pass		Special Mention		Substandard		Doubtful		Total
September 30, 2025
Real estate loans:
Non-farm non-residential owner occupied	$	395,454	$	—	$	13,542	$	—	$	408,996
Non-farm non-residential non-owner occupied		678,424		4,659		4,841		—		687,924
Residential		334,210		—		373		—		334,583
Construction, development & other		822,656		489		3,421		—		826,566
Farmland		25,549		—		—		—		25,549
Commercial & industrial		1,752,366		5,756		13,739		184		1,772,045
Consumer		1,254		37		—		—		1,291
Municipal and other		108,162		—		—		—		108,162
	$	4,118,075	$	10,941	$	35,916	$	184	$	4,165,116


(Dollars in thousands)	Pass		Special Mention		Substandard		Doubtful		Total
December 31, 2024
Real estate loans:
Non-farm non-residential owner occupied	$	426,069	$	5,097	$	16,968	$	—	$	448,134
Non-farm non-residential non-owner occupied		652,119		—		—		—		652,119
Residential		333,324		495		2,917		—		336,736
Construction, development & other		868,160		2,812		401		—		871,373
Farmland		30,915		—		—		—		30,915
Commercial & industrial		1,467,043		18,147		11,408		810		1,497,408
Consumer		1,859		—		—		—		1,859
Municipal and other		127,881		—		—		—		127,881
	$	3,907,370	$	26,551	$	31,694	$	810	$	3,966,425

The following tables summarize the Company's loans by risk grades, loan class and vintage, at September 30, 2025 and December 31, 2024:


	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized
(Dollars in thousands)	2025		2024		2023		2022		2021		Prior Years		Cost Basis		Total
September 30, 2025
Real estate loans:
Non-farm non-residential owner occupied
Pass	$	48,207	$	65,094	$	28,761	$	68,359	$	85,425	$	85,325	$	14,283	$	395,454
Substandard		976		1		89		4,120		4,168		4,188		—		13,542
Total Non-Farm non-residential owner-occupied	$	49,183	$	65,095	$	28,850	$	72,479	$	89,593	$	89,513	$	14,283	$	408,996
Non-farm non-residential non-owner occupied
Pass	$	179,636	$	87,285	$	62,725	$	152,832	$	138,529	$	34,761	$	22,656	$	678,424
Special Mention		—		—		—		1,989		—		2,670		—		4,659
Substandard		4,420		111		—		—		—		310		—		4,841
Total Non-Farm non-residential non owner-occupied	$	184,056	$	87,396	$	62,725	$	154,821	$	138,529	$	37,741	$	22,656	$	687,924
Residential
Pass	$	54,505	$	37,606	$	76,213	$	78,988	$	59,366	$	21,015	$	6,517	$	334,210
Substandard		74		85		—		214		—		—		—		373
Total Residential	$	54,579	$	37,691	$	76,213	$	79,202	$	59,366	$	21,015	$	6,517	$	334,583
Construction, development & other
Pass	$	66,988	$	81,411	$	74,757	$	63,662	$	22,178	$	4,004	$	509,656	$	822,656
Special Mention		489		—		—		—		—		—		—		489
Substandard		3,415		—		6		—		—		—		—		3,421
Total Construction, development & other	$	70,892	$	81,411	$	74,763	$	63,662	$	22,178	$	4,004	$	509,656	$	826,566
Farmland
Pass	$	882	$	3,191	$	7,907	$	6,796	$	1,004	$	683	$	5,086	$	25,549
Total Farmland	$	882	$	3,191	$	7,907	$	6,796	$	1,004	$	683	$	5,086	$	25,549
Commercial & industrial
Pass	$	210,072	$	123,869	$	118,928	$	92,010	$	41,851	$	10,046	$	1,155,590	$	1,752,366
Special Mention		332		94		253		221		—		4,856		—		5,756
Substandard		344		1,239		2,903		1,056		265		417		7,515		13,739
Doubtful		—		—		—		—		—		184		—		184
Total Commercial & industrial	$	210,748	$	125,202	$	122,084	$	93,287	$	42,116	$	15,503	$	1,163,105	$	1,772,045
Consumer
Pass	$	413	$	113	$	388	$	210	$	18	$	112	$	—	$	1,254
Special Mention		—		—		37		—		—		—		—		37
Total Consumer	$	413	$	113	$	425	$	210	$	18	$	112	$	—	$	1,291
Municipal and other
Pass	$	977	$	820	$	20,593	$	4,415	$	997	$	375	$	79,985	$	108,162
Total Municipal and other	$	977	$	820	$	20,593	$	4,415	$	997	$	375	$	79,985	$	108,162
Total Loans	$	571,730	$	400,919	$	393,560	$	474,872	$	353,801	$	168,946	$	1,801,288	$	4,165,116


	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized
(Dollars in thousands)	2024		2023		2022		2021		2020		Prior Years		Cost Basis		Total
December 31, 2024
Real estate loans:
Non-farm non-residential owner occupied
Pass	$	84,206	$	33,385	$	92,614	$	105,816	$	55,673	$	46,492	$	7,883	$	426,069
Special Mention		—		—		4,158		—		—		939		—		5,097
Substandard		2,324		2,828		611		4,334		5,243		1,628		—		16,968
Total Non-Farm non-residential owner-occupied	$	86,530	$	36,213	$	97,383	$	110,150	$	60,916	$	49,059	$	7,883	$	448,134
Non-farm non-residential non-owner occupied
Pass	$	107,604	$	107,836	$	163,948	$	194,058	$	20,616	$	29,797	$	28,260	$	652,119
Total Non-Farm non-residential non owner-occupied	$	107,604	$	107,836	$	163,948	$	194,058	$	20,616	$	29,797	$	28,260	$	652,119
Residential
Pass	$	57,119	$	86,144	$	91,969	$	69,532	$	16,698	$	9,193	$	2,669	$	333,324
Special Mention		495		—		—		—		—		—		—		495
Substandard		2,144		112		231		—		430		—		—		2,917
Total Residential	$	59,758	$	86,256	$	92,200	$	69,532	$	17,128	$	9,193	$	2,669	$	336,736
Construction, development & other
Pass	$	111,715	$	137,460	$	82,821	$	56,821	$	755	$	3,347	$	475,241	$	868,160
Special Mention		2,812		—		—		—		—		—		—		2,812
Substandard		401		—		—		—		—		—		—		401
Total Construction, development & other	$	114,928	$	137,460	$	82,821	$	56,821	$	755	$	3,347	$	475,241	$	871,373
Farmland
Pass	$	3,751	$	9,644	$	10,738	$	1,085	$	—	$	737	$	4,960	$	30,915
Total Farmland	$	3,751	$	9,644	$	10,738	$	1,085	$	—	$	737	$	4,960	$	30,915
Commercial & industrial
Pass	$	193,973	$	149,785	$	94,726	$	63,161	$	9,524	$	7,453	$	948,421	$	1,467,043
Special Mention		2,695		—		—		—		—		—		15,452		18,147
Substandard		1,841		2,930		2,456		366		—		1,279		2,536		11,408
Doubtful		—		—		810		—		—		—		—		810
Total Commercial & industrial	$	198,509	$	152,715	$	97,992	$	63,527	$	9,524	$	8,732	$	966,409	$	1,497,408
Consumer
Pass	$	118	$	769	$	392	$	67	$	78	$	98	$	337	$	1,859
Total Consumer	$	118	$	769	$	392	$	67	$	78	$	98	$	337	$	1,859
Municipal and other
Pass	$	36,547	$	23,307	$	7,259	$	14,797	$	1,335	$	23	$	44,613	$	127,881
Total Municipal and other	$	36,547	$	23,307	$	7,259	$	14,797	$	1,335	$	23	$	44,613	$	127,881
Total Loans	$	607,745	$	554,200	$	552,733	$	510,037	$	110,352	$	100,986	$	1,530,372	$	3,966,425

The following tables summarize the Company's gross charge-offs by origination year and loan class for the nine months ended September 30, 2025 and the year ended December 31, 2024.


	Gross Charge-offs by Origination Year																Revolving Loans Amortized
(Dollars in thousands)	2025		2024			2023			2022			2021		Prior Years			Cost Basis			Total
September 30, 2025
Commercial & industrial	$	—	$	(72	)	$	(43	)	$	(1,408	)	$	—	$	(32	)	$	(1,702	)	$	(3,257	)
Municipal and other		—		—			—			(30	)		—		(10	)		—			(40	)
Total Charge-Offs	$	—	$	(72	)	$	(43	)	$	(1,438	)	$	—	$	(42	)	$	(1,702	)	$	(3,297	)

          
         Gross Charge-offs by Origination Year

         Revolving Loans Amortized

         (Dollars in thousands)

         2024

         2023

         2022

         2021

         2020

         Prior Years

         Cost Basis

         Total

         December 31, 2024

         Real estate loans:

Third Coast Bancshares, Inc. 10-Q