v3.25.2
Allowance for Credit Losses
 6 Months Ended
Jun. 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, filed with the SEC on February 26, 2025.
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 June 30, 2025 and December 31, 2024, the Company had accrued interest receivable for loans of $72,205 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 June 30, 2025
Allowance for credit losses:
Beginning balance$38,441 $16,561 $50,711 $88,080 $3,644 $6,494 $203,931 
Initial impact of purchased credit deteriorated (“PCD”) loans acquired
7,140 1,997 264 14,090 — 2 23,493 
Charge-offs(5,823)(105)(319)(3,944)(2,394)(394)(12,979)
Recoveries627 — 37 116 4 141 925 
Net charge-offs(5,196)(105)(282)(3,828)(2,390)(253)(12,054)
Provision for (recovery of) credit losses on loans19,291 3,331 15,010 37,230 681 (143)75,400 
Ending balance$59,676 $21,784 $65,703 $135,572 $1,935 $6,100 $290,770 
Six Months Ended June 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 period7,140 1,997 264 14,090 — 2 23,493 
Charge-offs(5,917)(105)(628)(4,405)(2,394)(659)(14,108)
Recoveries1,585 — 70 122 13 389 2,179 
Net charge-offs(4,332)(105)(558)(4,283)(2,381)(270)(11,929)
Provision for (recovery of) credit losses on loans18,341 4,766 18,236 35,561 948 (402)77,450 
Ending balance$59,676 $21,784 $65,703 $135,572 $1,935 $6,100 $290,770 
Period-End Amount Allocated to:
Individually evaluated$9,604 $1,993 $— $16,068 $— $270 $27,935 
Collectively evaluated 50,072 19,791 65,703 119,504 1,935 5,830 262,835 
Ending balance$59,676 $21,784 $65,703 $135,572 $1,935 $6,100 $290,770 
Loans:
Individually evaluated$20,316 $16,045 $4,776 $65,012 $899 $270 $107,318 
Collectively evaluated 2,646,607 1,323,922 4,869,903 9,405,122 88,669 121,906 18,456,129 
Ending balance$2,666,923 $1,339,967 $4,874,679 $9,470,134 $89,568 $122,176 $18,563,447 
Nonaccruing loans with no allowance for credit losses$— $2,332 $4,275 $14,362 $899 $— $21,868 
CommercialReal Estate -
Construction		Real Estate -
1-4 Family
Mortgage		Real Estate  -
Commercial
Mortgage		Lease FinancingInstallment Loans to IndividualsTotal
Three Months Ended June 30, 2024
Allowance for credit losses:
Beginning balance$45,921 $17,317 $47,566 $78,725 $2,554 $8,969 $201,052 
Charge-offs(186)— (208)(5,727)— (251)(6,372)
Recoveries525 — 25 99 10 232 891 
Net recoveries (charge-offs) 339 — (183)(5,628)10 (19)(5,481)
(Recovery of) provision for credit losses on loans(1,309)1,579 38 4,028 (49)13 4,300 
Ending balance$44,951 $18,896 $47,421 $77,125 $2,515 $8,963 $199,871 
Six Months Ended June 30, 2024
Allowance for credit losses:
Beginning balance$43,980 $18,612 $47,283 $77,020 $2,515 $9,168 $198,578 
Initial impact of purchased credit deteriorated loans acquired during the period— — — — — — — 
Charge-offs(535)— (290)(5,727)— (730)(7,282)
Recoveries871 — 73 105 18 570 1,637 
Net recoveries (charge-offs) 336 — (217)(5,622)18 (160)(5,645)
Provision for (recovery of) credit losses on loans635 284 355 5,727 (18)(45)6,938 
Ending balance$44,951 $18,896 $47,421 $77,125 $2,515 $8,963 $199,871 
Period-End Amount Allocated to:
Individually evaluated$8,514 $— $— $1,220 $— $270 $10,004 
Collectively evaluated36,437 18,896 47,421 75,905 2,515 8,693 189,867 
Ending balance$44,951 $18,896 $47,421 $77,125 $2,515 $8,963 $199,871 
Loans:
Individually evaluated$14,211 $— $6,942 $32,579 $— $270 $54,002 
Collectively evaluated1,833,551 1,355,425 3,428,876 5,733,899 102,996 96,006 12,550,753 
Ending balance$1,847,762 $1,355,425 $3,435,818 $5,766,478 $102,996 $96,276 $12,604,755 
Nonaccruing loans with no allowance for credit losses$230 $— $6,318 $20,640 $— $— $27,188 
 
The Company recorded a provision for credit losses on loans of $75,400 during the second quarter of 2025, as compared to a provision for credit losses on loans of $4,300 recorded in the second 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 $75,400 in the second quarter of 2025 was primarily driven by the Day 1 acquisition provision related to the merger with The First, as well as 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, filed with the SEC on February 26, 2025.
The following table provides a roll-forward of the allowance for credit losses on unfunded loan commitments for the periods presented.
Three Months Ended June 30,20252024
Allowance for credit losses on unfunded loan commitments:
Beginning balance$17,643 $16,718 
Provision for (recovery of) credit losses on unfunded loan commitments5,922 (1,000)
Ending balance$23,565 $15,718 
Six Months Ended June 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 commitments8,622 (1,200)
Ending balance$23,565 $15,718 

The Company recorded a provision for credit losses on unfunded loan commitments of $5,922 during the second quarter of 2025, as compared to a recovery of credit losses on unfunded loan commitments of $1,000 recorded in the second quarter of 2024. The $5,922 provision for credit losses on unfunded commitments in the second quarter of 2025 was primarily driven by the $4,422 of Day 1 acquisition provision related to the merger with The First.