Note 3 - LOANS/LEASES RECEIVABLE

6 Months Ended

Jun. 30, 2025

NOTE 3 – LOANS/LEASES RECEIVABLE

The composition of the loan/lease portfolio as of June 30, 2025 and December 31, 2024 is presented as follows:


	June 30, 2025		December 31, 2024

	(dollars in thousands)
C&I:
C&I - revolving	$	380,029	$	387,991
C&I - other *		1,375,689		1,514,932
		1,755,718		1,902,923

CRE - owner occupied		593,675		605,993
CRE - non-owner occupied		1,036,049		1,077,852
Construction and land development		1,529,022		1,313,543
Multi-family		1,251,763		1,132,110
Direct financing leases**		12,880		17,076
1-4 family real estate***		592,253		588,179
Consumer		153,564		146,728
		6,924,924		6,784,404
Allowance for credit losses		(88,732)		(89,841)
	$	6,836,192	$	6,694,563
** Direct financing leases:
Net minimum lease payments to be received	$	13,808	$	18,506
Estimated unguaranteed residual values of leased assets		165		165
Unearned lease/residual income		(1,093)		(1,595)
		12,880		17,076
Less allowance for credit losses		(423)		(580)
	$	12,457	$	16,496

* Includes equipment financing agreements outstanding through m2, totaling $237.1 million and $303.2 million as of June 30, 2025 and December 31, 2024, respectively.

** Management performs an evaluation of the estimated unguaranteed residual values of leased assets on an annual basis, at a minimum. The evaluation consists of discussions with reputable and current vendors, which is combined with management's expertise and understanding of the current states of particular industries to determine informal valuations of the equipment. As necessary and where available, management will utilize valuations by independent appraisers. The majority of leases with residual values contain a lease options rider, which requires the lessee to pay the residual value directly, finance the payment of the residual value, or extend the lease term to pay the residual value. In these cases, the residual value is protected and the risk of loss is minimal.

*** Includes residential real estate loans held for sale totaling $1.2 million and $2.1 million as of June 30, 2025 and December 31, 2024, respectively.

Accrued interest on loans, which is excluded from the amortized cost of loans, totaled $45.7 million and $46.1 million at June 30, 2025 and December 31, 2024, respectively, and was included in Other Assets on the consolidated balance sheets.

Changes in accretable discounts on acquired loans for the three and six months ended June 30, 2025 and 2024, respectively, are presented as follows:


	For the Three Months Ended				For the Six Months Ended
	June 30, 2025		June 30, 2024		June 30, 2025		June 30, 2024
	Performing		Performing			Performing	Performing
	Loans		Loans		Loans		Loans

	(dollars in thousands)

Balance at the beginning of the period	$	(2,115)	$	(3,539)	$	(2,310)	$	(3,891)
Accretion recognized		94		268		289		620
Balance at the end of the period	$	(2,021)	$	(3,271)	$	(2,021)	$	(3,271)

The aging of the loan/lease portfolio by classes of loans/leases as of June 30, 2025 and December 31, 2024 is presented as follows:


	As of June 30, 2025
										Accruing Past
				30-59 Days			60-89 Days			Due 90 Days or			Nonaccrual
Classes of Loans/Leases	Current			Past Due			Past Due			More			Loans/Leases			Total

	(dollars in thousands)
C&I:
C&I - revolving	$	377,355		$	—		$	—		$	—		$	2,674	$		380,029
C&I - other		1,337,518			9,445			2,690			7			26,029			1,375,689
CRE - owner occupied		591,853			51			248			—			1,523			593,675
CRE - non-owner occupied		1,033,200			100			—			—			2,749			1,036,049
Construction and land development		1,524,904			—			—			—			4,118			1,529,022
Multi-family		1,249,430			—			—			—			2,333			1,251,763
Direct financing leases		12,394			342			2			—			142			12,880
1-4 family real estate		589,107			147			653			—			2,346			592,253
Consumer		152,942			20			34			—			568			153,564
	$	6,868,703		$	10,105		$	3,627		$	7		$	42,482		$	6,924,924

As a percentage of total loan/lease portfolio		99.19	%		0.15	%		0.05	%		0.00	%		0.61	%		100.00	%


	As of December 31, 2024
										Accruing Past
				30-59 Days			60-89 Days			Due 90 Days or			Nonaccrual
Classes of Loans/Leases	Current			Past Due			Past Due			More			Loans/Leases			Total

	(dollars in thousands)
C&I
C&I - revolving	$	387,767		$	30		$	—		$	—		$	194	$		387,991
C&I - other		1,474,729			13,159			2,931			2			24,111			1,514,932
CRE - owner occupied		604,550			173			454			—			816			605,993
CRE - non-owner occupied		1,074,541			85			—			—			3,226			1,077,852
Construction and land development		1,300,893			8			—			4,188			8,454			1,313,543
Multi-family		1,132,110			—			—			—			—			1,132,110
Direct financing leases		16,622			60			135			—			259			17,076
1-4 family real estate		579,943			4,910			539			80			2,707			588,179
Consumer		146,172			235			8			—			313			146,728
	$	6,717,327		$	18,660		$	4,067		$	4,270		$	40,080		$	6,784,404

As a percentage of total loan/lease portfolio		99.01	%		0.28	%		0.06	%		0.06	%		0.59	%		100.00	%

NPLs by classes of loans/leases as of June 30, 2025 and December 31, 2024 are presented as follows:


	As of June 30, 2025
	Accruing Past		Nonaccrual		Nonaccrual
	Due 90 Days or		Loans/Leases		Loans/Leases				Percentage of
Classes of Loans/Leases	More		with an ACL		without an ACL		Total NPLs		Total NPLs

	(dollars in thousands)
C&I:
C&I - revolving	$	—	$	2,674	$	—	$	2,674	6	%
C&I - other		7		23,983		2,046		26,036	61
CRE - owner occupied		—		1,031		492		1,523	4
CRE - non-owner occupied		—		2,749		—		2,749	6
Construction and land development		—		4,118		—		4,118	10
Multi-family		—		2,333		—		2,333	5
Direct financing leases		—		142		—		142	1
1-4 family real estate		—		2,019		327		2,346	6
Consumer		—		568		—		568	1
	$	7	$	39,617	$	2,865	$	42,489	100	%


	As of December 31, 2024
	Accruing Past		Nonaccrual		Nonaccrual
	Due 90 Days or		Loans/Leases		Loans/Leases				Percentage of
Classes of Loans/Leases	More		with an ACL		without an ACL		Total NPLs		Total NPLs

		(dollars in thousands)
C&I:
C&I - revolving	$	—	$	193	$	1	$	194	-	%
C&I - other		2		20,849		3,262		24,113	54
CRE - owner occupied		—		816		—		816	2
CRE - non-owner occupied		—		2,686		540		3,226	7
Construction and land development		4,188		—		8,454		12,642	29
Multi-family		—		—		—		—	-
Direct financing leases		—		259		—		259	1
1-4 family real estate		80		2,366		341		2,787	6
Consumer		—		313		—		313	1
	$	4,270	$	27,482	$	12,598	$	44,350	100	%

The Company did not recognize any interest income on nonaccrual loans during the six months ended June 30, 2025 and 2024.

Changes in the ACL on loans/leases by portfolio segment for the three and six months ended June 30, 2025 and 2024, respectively, are presented as follows:


	Three Months Ended June 30, 2025
					CRE		CRE		Construction				1-4
	C&I -		C&I -		Owner		Non-Owner		and Land		Multi-		Family
	Revolving		Other*		Occupied		Occupied		Development		Family		Real Estate		Consumer		Total

	(dollars in thousands)

Balance, beginning	$	3,952	$	31,845	$	7,141	$	11,061	$	16,760	$	12,968	$	5,095	$	1,532	$	90,354
Provision		(155)		3,972		(400)		(445)		1,161		574		(115)		75		4,667
Charge-offs		—		(6,470)		—		10		—		—		—		(30)		(6,490)
Recoveries		—		175		—		—		24		—		—		2		201
Balance, ending	$	3,797	$	29,522	$	6,741	$	10,626	$	17,945	$	13,542	$	4,980	$	1,579	$	88,732


	Six Months Ended June 30, 2025
					CRE		CRE		Construction				1-4
	C&I -		C&I -		Owner		Non-Owner		and Land		Multi-		Family
	Revolving		Other**		Occupied		Occupied		Development		Family		Real Estate		Consumer		Total

	(dollars in thousands)

Balance, beginning	$	3,856	$	34,002	$	7,147	$	11,137	$	15,099	$	12,173	$	4,934	$	1,493	$	89,841
Provision		(59)		6,071		(406)		(521)		2,763		1,369		72		121		9,410
Charge-offs		—		(11,348)		—		10		—		—		(26)		(70)		(11,434)
Recoveries		—		797		—		—		83		—		—		35		915
Balance, ending	$	3,797	$	29,522	$	6,741	$	10,626	$	17,945	$	13,542	$	4,980	$	1,579	$	88,732

* Included within the C&I – Other column are ACL on leases with a beginning balance of $485 thousand, negative provision of $33 thousand, charge-offs of $30 thousand and recoveries of $1 thousand. ACL on leases was $423 thousand as of June 30, 2025.

** Included within the C&I – Other column are ACL on leases with a beginning balance of $580 thousand, provision of $54 thousand, charge-offs of $221 thousand and recoveries of $10 thousand. ACL on leases was $423 thousand as of June 30, 2025.


	Three Months Ended June 30, 2024
					CRE		CRE		Construction				1-4
	C&I -		C&I -		Owner		Non-Owner		and Land		Multi-		Family
	Revolving		Other*		Occupied		Occupied		Development		Family		Real Estate		Consumer		Total

	(dollars in thousands)

Balance, beginning	$	4,440	$	26,615	$	8,416	$	12,607	$	12,737	$	12,928	$	5,289	$	1,438	$	84,470
Change in ACL for writedown of LHFS to fair value		—		—		—		—		513		(15)		—		—		498
Provision		(741)		5,469		(363)		(231)		(1,196)		1,344		(66)		127		4,343
Charge-offs		—		(1,681)		—		—		—		—		(21)		(49)		(1,751)
Recoveries		—		141		—		—		—		—		1		4		146
Balance, ending	$	3,699	$	30,544	$	8,053	$	12,376	$	12,054	$	14,257	$	5,203	$	1,520	$	87,706


	Six Months Ended June 30, 2024
					CRE		CRE		Construction				1-4
	C&I -		C&I -		Owner		Non-Owner		and Land		Multi-		Family
	Revolving		Other**		Occupied		Occupied		Development		Family		Real Estate		Consumer		Total

	(dollars in thousands)

Balance, beginning	$	4,224	$	27,460	$	8,223	$	11,581	$	16,856	$	12,463	$	4,917	$	1,476	$	87,200
Change in ACL for writedown of LHFS to fair value		—		—		—		—		—		(2,879)		—		—		(2,879)
Provisions		(525)		7,696		(170)		795		(4,802)		4,673		309		103		8,079
Charge-offs		—		(5,219)		—		—		—		—		(24)		(68)		(5,311)
Recoveries		—		607		—		—		—		—		1		9		617
Balance, ending	$	3,699	$	30,544	$	8,053	$	12,376	$	12,054	$	14,257	$	5,203	$	1,520	$	87,706

* Included within the C&I – Other column are ACL on leases with a beginning balance of $884 thousand, provision of $106 thousand, no charge-offs and recoveries of $22 thousand. ACL on leases was $800 thousand as of June 30, 2024.

** Included within the C&I – Other column are ACL on leases with a beginning balance of $992 thousand, provision of $174 thousand, charge-offs of $89 thousand and recoveries of $71 thousand. ACL on leases was $800 thousand as of June 30, 2024.

The composition of the ACL on loans/leases by portfolio segment based on evaluation method are as follows:


	As of June 30, 2025
	Amortized Cost of Loans Receivable						Allowance for Credit Losses
	Individually		Collectively				Individually		Collectively
	Evaluated for		Evaluated for				Evaluated for		Evaluated for
	Credit Losses		Credit Losses		Total		Credit Losses		Credit Losses		Total

	(dollars in thousands)
C&I :
C&I - revolving	$	7,239	$	372,790	$	380,029	$	173	$	3,624	$	3,797
C&I - other*		37,109		1,351,460		1,388,569		9,730		19,792		29,522
		44,348		1,724,250		1,768,598		9,903		23,416		33,319
CRE - owner occupied		28,070		565,605		593,675		1,775		4,966		6,741
CRE - non-owner occupied		13,080		1,022,969		1,036,049		605		10,021		10,626
Construction and land development		4,689		1,524,333		1,529,022		1,677		16,268		17,945
Multi-family		2,351		1,249,412		1,251,763		116		13,426		13,542
1-4 family real estate		3,006		589,247		592,253		273		4,707		4,980
Consumer		611		152,953		153,564		52		1,527		1,579
	$	96,155	$	6,828,769	$	6,924,924	$	14,401	$	74,331	$	88,732

* Included within the C&I – other category are leases individually evaluated of $142 thousand with a related allowance for credit losses of $46 thousand and leases collectively evaluated of $12.7 million with a related allowance for credit losses of $377 thousand as of June 30, 2025.


	As of December 31, 2024
	Amortized Cost of Loans Receivable						Allowance for Credit Losses
	Individually		Collectively				Individually		Collectively
	Evaluated for		Evaluated for				Evaluated for		Evaluated for
	Credit Losses		Credit Losses		Total		Credit Losses		Credit Losses		Total

	(dollars in thousands)
C&I :
C&I - revolving	$	3,404	$	384,587	$	387,991	$	97	$	3,759	$	3,856
C&I - other*		38,140		1,493,868		1,532,008		9,437		24,565		34,002
		41,544		1,878,455		1,919,999		9,534		28,324		37,858
CRE - owner occupied		26,822		579,171		605,993		2,136		5,011		7,147
CRE - non-owner occupied		18,163		1,059,689		1,077,852		542		10,595		11,137
Construction and land development		13,346		1,300,197		1,313,543		1,343		13,756		15,099
Multi-family		23		1,132,087		1,132,110		2		12,171		12,173
1-4 family real estate		3,463		584,716		588,179		321		4,613		4,934
Consumer		443		146,285		146,728		45		1,448		1,493
	$	103,804	$	6,680,600	$	6,784,404	$	13,923	$	75,918	$	89,841

* Included within the C&I – other category are leases individually evaluated of $259 thousand with a related allowance for credit losses of $93 thousand and leases collectively evaluated of $16.8 million with a related allowance for credit losses of $487 thousand as of December 31, 2024.

The following table presents the amortized cost basis of collateral dependent loans, by the primary collateral type, which are individually evaluated to determine expected credit losses as of June 30, 2025 and December 31, 2024:



	As of June 30, 2025
					Non
	Commercial		Owner-occupied		Owner-Occupied		Owner Occupied
	Assets		CRE		Real Estate		Real Estate		Securities		Equipment		Other		Total

	(dollars in thousands)
C & I:
C&I - revolving	$	7,239	$	—	$	—	$	—	$	—	$	—	$	—	$	7,239
C&I - other*		8,834		—		—		—		4,760		11,464		12,051		37,109
		16,073		—		—		—		4,760		11,464		12,051		44,348
CRE - owner occupied		—		28,024		—		46		—		—		—		28,070
CRE - non-owner occupied		—		—		13,080		—		—		—		—		13,080
Construction and land development		—		—		4,689		—		—		—		—		4,689
Multi-family		—		—		2,351		—		—		—		—		2,351
1-4 family real estate		—		—		173		2,833		—		—		—		3,006
Consumer		—		—		—		598		—		—		13		611
	$	16,073	$	28,024	$	20,293	$	3,477	$	4,760	$	11,464	$	12,064	$	96,155

* Included within the C&I – other category are leases individually evaluated of $142 thousand with primary collateral of equipment.


	As of December 31, 2024
					Non
	Commercial		Owner-occupied		Owner-Occupied		Owner Occupied
	Assets		CRE		Real Estate		Real Estate		Securities		Equipment		Other		Total

	(dollars in thousands)
C & I:
C&I - revolving	$	3,404	$	—	$	—	$	—	$	—	$	—	$	—	$	3,404
C&I - other*		3,868		—		506		—		4,760		14,197		14,809		38,140
		7,272		—		506		—		4,760		14,197		14,809		41,544
CRE - owner occupied		—		26,760		—		62		—		—		—		26,822
CRE - non-owner occupied		—		—		18,163		—		—		—		—		18,163
Construction and land development		—		—		13,346		—		—		—		—		13,346
Multi-family		—		—		23		—		—		—		—		23
1-4 family real estate		—		—		176		3,287		—		—		—		3,463
Consumer		—		—		34		394		—		—		15		443
	$	7,272	$	26,760	$	32,248	$	3,743	$	4,760	$	14,197	$	14,824	$	103,804

* Included within the C&I – other category are leases individually evaluated of $259 thousand with primary collateral of equipment.

For all loans except direct financing leases and equipment financing agreements, the Company’s credit quality indicator consists of internally assigned risk ratings. Each such loan is assigned a risk rating upon origination. The risk rating is reviewed every 15 months, at a minimum, and on an as-needed basis depending on the specific circumstances of the loan.

For certain C&I loans (including equipment financing agreements and direct financing leases), the Company’s credit quality indicator is performance determined by delinquency status. Delinquency status is updated daily by the Company’s loan system.

The following tables show the credit quality indicator of loans by class of receivable and year of origination as of June 30, 2025:


	As of June 30, 2025
	Term Loans
	Amortized Cost Basis by Origination Year
													Revolving
													Loans
Internally Assigned													Amortized
Risk Rating	2025		2024		2023		2022		2021		Prior		Cost Basis		Total

	(dollars in thousands)
C&I - revolving
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	368,416	$	368,416
Special Mention		—		—		—		—		—		—		4,374		4,374
Substandard		—		—		—		—		—		—		7,239		7,239
Doubtful		—		—		—		—		—		—		—		—
Total C&I - revolving	$	—	$	—	$	—	$	—	$	—	$	—	$	380,029	$	380,029

C&I - other
Pass	$	164,962	$	199,240	$	309,314	$	175,454	$	68,494	$	181,683	$	—	$	1,099,147
Special Mention		2,225		4,836		745		1,717		2,782		625		—		12,930
Substandard		4,219		13,312		598		881		2,690		4,775		—		26,475
Doubtful		—		—		—		—		—		—		—		—
Total C&I - other	$	171,406	$	217,388	$	310,657	$	178,052	$	73,966	$	187,083	$	—	$	1,138,552

CRE - owner occupied
Pass	$	49,226	$	54,430	$	90,828	$	93,212	$	92,847	$	143,912	$	10,507	$	534,962
Special Mention		438		—		16,477		8,062		7,850		2,017		—		34,844
Substandard		1,619		3,262		116		488		989		17,395		—		23,869
Doubtful		—		—		—		—		—		—		—		—
Total CRE - owner occupied	$	51,283	$	57,692	$	107,421	$	101,762	$	101,686	$	163,324	$	10,507	$	593,675

CRE - non-owner occupied
Pass	$	116,524	$	175,639	$	162,016	$	232,033	$	147,754	$	151,314	$	25,608	$	1,010,888
Special Mention		4,199		1,018		—		3,154		2,437		1,273		—		12,081
Substandard		9,334		79		2,664		—		556		447		—		13,080
Doubtful		—		—		—		—		—		—		—		—
Total CRE - non-owner occupied	$	130,057	$	176,736	$	164,680	$	235,187	$	150,747	$	153,034	$	25,608	$	1,036,049

Construction and land development
Pass	$	117,815	$	515,470	$	601,234	$	187,653	$	64,585	$	296	$	35,624	$	1,522,677
Special Mention		—		1,863		—		—		73		—		—		1,936
Substandard		198		4,118		93		—		—		—		—		4,409
Doubtful		—		—		—		—		—		—		—		—
Total Construction and land development	$	118,013	$	521,451	$	601,327	$	187,653	$	64,658	$	296	$	35,624	$	1,529,022

Multi-family
Pass	$	118,667	$	131,398	$	135,527	$	311,071	$	181,782	$	370,265	$	702	$	1,249,412
Special Mention		—		—		—		—		—		—		—		—
Substandard		2,333		—		—		—		18		—		—		2,351
Doubtful		—		—		—		—		—		—		—		—
Total Multi-family	$	121,000	$	131,398	$	135,527	$	311,071	$	181,800	$	370,265	$	702	$	1,251,763

1-4 family real estate
Pass	$	60,950	$	104,407	$	107,859	$	81,690	$	101,324	$	126,315	$	4,310	$	586,855
Special Mention		1,532		172		147		—		535		7		—		2,393
Substandard		147		14		318		642		595		1,264		25		3,005
Doubtful		—		—		—		—		—		—		—		—
Total 1-4 family real estate	$	62,629	$	104,593	$	108,324	$	82,332	$	102,454	$	127,586	$	4,335	$	592,253

Consumer
Pass	$	19,334	$	5,391	$	5,363	$	4,816	$	882	$	2,456	$	114,647	$	152,889
Special Mention		—		—		—		—		—		—		63		63
Substandard		—		—		257		36		—		23		296		612
Doubtful		—		—		—		—		—		—		—		—
Total Consumer	$	19,334	$	5,391	$	5,620	$	4,852	$	882	$	2,479	$	115,006	$	153,564

Total	$	673,722	$	1,214,649	$	1,433,556	$	1,100,909	$	676,193	$	1,004,067	$	571,811	$	6,674,907


	As of June 30, 2025
	Term Loans
	Amortized Cost Basis by Origination Year												Revolving
													Loans
													Amortized
Delinquency Status *	2025		2024		2023		2022		2021		Prior		Cost Basis		Total

	(dollars in thousands)
C&I - other
Performing	$	2,630	$	89,692	$	80,148	$	40,733	$	11,937	$	1,799	$	—	$	226,939
Nonperforming		—		1,735		3,641		3,320		1,431		71		—		10,198
Total C&I - other	$	2,630	$	91,427	$	83,789	$	44,053	$	13,368	$	1,870	$	—	$	237,137

Direct financing leases
Performing	$	217	$	791	$	5,820	$	4,664	$	960	$	286	$	—	$	12,738
Nonperforming		—		—		70		58		13		1		—		142
Total Direct financing leases	$	217	$	791	$	5,890	$	4,722	$	973	$	287	$	—	$	12,880

Total	$	2,847	$	92,218	$	89,679	$	48,775	$	14,341	$	2,157	$	—	$	250,017

* Performing = loans/leases accruing and less than 90 days past due. Nonperforming = loans/leases on nonaccrual and accruing loans/leases that are greater than or equal to 90 days past due.

The following table shows the gross charge-offs of loans and leases by class of receivable and year of origination for the three and six months ended June 30, 2025:


	Three Months Ended June 30, 2025														Six Months Ended June 30, 2025
	Gross Charge-off by Origination Year														Gross Charge-off by Origination Year
Classes of Loans/Leases	2025		2024		2023		2022		2021		Prior		Total		2025		2024		2023		2022		2021		Prior		Total

	(dollars in thousands)														(dollars in thousands)
C&I:
C&I - revolving	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
C&I - other		500		2,010		1,431		2,064		435		—		6,440		500		3,367		2,671		3,728		751		110		11,127
CRE - owner occupied		—		—		—		—		—		—		—		—		—		—		—		—		—		—
CRE - non-owner occupied		—		—		—		—		—		(10)		(10)		—		—		—		—		—		(10)		(10)
Construction and land development		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Multi-family		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Direct financing leases		—		—		—		30		—		—		30		—		136		39		40		—		6		221
1-4 family real estate		—		—		—		—		—		—		—		—		3		—		23		—		—		26
Consumer		—		13		17		—		—		—		30		—		13		57		—		—		—		70
	$	500	$	2,023	$	1,448	$	2,094	$	435	$	(10)	$	6,490	$	500	$	3,519	$	2,767	$	3,791	$	751	$	106	$	11,434

The following tables show the credit quality indicator of loans by class of receivable and year of origination as of December 31, 2024:


	As of December 31, 2024
	Term Loans
	Amortized Cost Basis by Origination Year
													Revolving
													Loans
Internally Assigned													Amortized
Risk Rating	2024		2023		2022		2021		2020		Prior		Cost Basis		Total

	(dollars in thousands)
C&I - revolving
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	368,318	$	368,318
Special Mention		—		—		—		—		—		—		16,369		16,369
Substandard		—		—		—		—		—		—		3,304		3,304
Doubtful		—		—		—		—		—		—		—		—
Total C&I - revolving	$	—	$	—	$	—	$	—	$	—	$	—	$	387,991	$	387,991

C&I - other
Pass	$	324,649	$	348,843	$	204,275	$	82,601	$	49,130	$	155,191	$	—	$	1,164,689
Special Mention		6,517		5,534		2,855		4,799		2,548		725		—		22,978
Substandard		17,003		538		507		1,272		—		4,780		—		24,100
Doubtful		—		—		—		—		—		—		—		—
Total C&I - other	$	348,169	$	354,915	$	207,637	$	88,672	$	51,678	$	160,696	$	—	$	1,211,767

CRE - owner occupied
Pass	$	65,054	$	104,442	$	117,215	$	102,506	$	95,349	$	69,382	$	13,327	$	567,275
Special Mention		5,589		234		739		6,964		822		1,829		—		16,177
Substandard		3,669		—		980		309		16,582		1,001		—		22,541
Doubtful		—		—		—		—		—		—		—		—
Total CRE - owner occupied	$	74,312	$	104,676	$	118,934	$	109,779	$	112,753	$	72,212	$	13,327	$	605,993

CRE - non-owner occupied
Pass	$	194,510	$	204,599	$	272,296	$	164,948	$	96,216	$	95,117	$	20,548	$	1,048,234
Special Mention		4,406		—		55		—		—		6,844		150		11,455
Substandard		80		3,652		550		—		1,916		11,965		—		18,163
Doubtful		—		—		—		—		—		—		—		—
Total CRE - non-owner occupied	$	198,996	$	208,251	$	272,901	$	164,948	$	98,132	$	113,926	$	20,698	$	1,077,852

Construction and land development
Pass	$	435,373	$	524,375	$	235,987	$	66,409	$	3,313	$	—	$	31,176	$	1,296,633
Special Mention		3,863		—		—		75		—		—		—		3,938
Substandard		4,394		124		1,082		7,372		—		—		—		12,972
Doubtful		—		—		—		—		—		—		—		—
Total Construction and land development	$	443,630	$	524,499	$	237,069	$	73,856	$	3,313	$	—	$	31,176	$	1,313,543

Multi-family
Pass	$	137,806	$	138,011	$	279,256	$	185,872	$	217,697	$	165,867	$	7,578	$	1,132,087
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		23		—		—		—		23
Doubtful		—		—		—		—		—		—		—		—
Total Multi-family	$	137,806	$	138,011	$	279,256	$	185,895	$	217,697	$	165,867	$	7,578	$	1,132,110

1-4 family real estate
Pass	$	121,918	$	115,491	$	89,073	$	108,998	$	77,540	$	64,015	$	5,106	$	582,141
Special Mention		380		146		—		547		—		1,582		—		2,655
Substandard		91		327		981		634		378		944		28		3,383
Doubtful		—		—		—		—		—		—		—		—
Total 1-4 family real estate	$	122,389	$	115,964	$	90,054	$	110,179	$	77,918	$	66,541	$	5,134	$	588,179

Consumer
Pass	$	11,513	$	13,375	$	6,082	$	1,254	$	2,435	$	1,519	$	110,042	$	146,220
Special Mention		—		—		—		—		—		—		64		64
Substandard		34		208		39		—		—		97		66		444
Doubtful		—		—		—		—		—		—		—		—
Total Consumer	$	11,547	$	13,583	$	6,121	$	1,254	$	2,435	$	1,616	$	110,172	$	146,728

Total	$	1,336,849	$	1,459,899	$	1,211,972	$	734,583	$	563,926	$	580,858	$	576,076	$	6,464,163


	As of December 31, 2024
	Term Loans
	Amortized Cost Basis by Origination Year												Revolving
													Loans
													Amortized
Delinquency Status *	2024		2023		2022		2021		2020		Prior		Cost Basis		Total

	(dollars in thousands)
C&I - other
Performing	$	109,373	$	99,204	$	57,819	$	18,853	$	4,107	$	278	$	—	$	289,634
Nonperforming		1,028		4,689		5,537		2,076		201		—		—		13,531
Total C&I - other	$	110,401		103,893		63,356		20,929		4,308		278	$	—	$	303,165

Direct financing leases
Performing	$	1,742	$	6,099	$	6,583	$	1,413	$	569	$	411	$	—	$	16,817
Nonperforming		—		103		70		39		46		1		—		259
Total Direct financing leases	$	1,742	$	6,202	$	6,653	$	1,452	$	615	$	412	$	—	$	17,076

Total	$	112,143	$	110,095	$	70,009	$	22,381	$	4,923	$	690	$	—	$	320,241

* Performing = loans/leases accruing and less than 90 days past due. Nonperforming = loans/leases on nonaccrual and accruing loans/leases that are greater than or equal to 90 days past due.

The following table shows the gross charge-offs of loans and leases by class of receivable and year of origination for the three and six months ended June 30, 2024:


	Three Months Ended June 30, 2024														Six Months Ended June 30, 2024
	Gross Charge-off by Origination Year														Gross Charge-off by Origination Year
Classes of Loans/Leases	2025		2024		2023		2022		2021		Prior		Total		2025		2024		2023		2022		2021		Prior		Total

	(dollars in thousands)														(dollars in thousands)
C&I:
C&I - revolving	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
C&I - other		—		206		826		570		79		—		1,681		7		884		2,859		1,092		112		176		5,130
CRE - owner occupied		—		—		—		—		—		—		—		—		—		—		—		—		—		—
CRE - non-owner occupied		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Construction and land development		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Multi-family		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Direct financing leases		—		—		—		—		—		—		—		—		—		10		24		42		13		89
1-4 family real estate		—		21		—		—		—		—		21		—		21		—		—		—		3		24
Consumer		—		1		22		11		15		—		49		—		1		41		11		15		—		68
	$	—	$	228	$	848	$	581	$	94	$	—	$	1,751	$	7	$	906	$	2,910	$	1,127	$	169	$	192	$	5,311

There were no loan and lease modifications to borrowers experiencing financial difficulty during the three and six months ended June 30, 2025. Any loan and lease modifications to borrowers experiencing financial difficulty during 2024 were deemed immaterial.

Changes in the ACL for OBS exposures for the three and six months ended June 30, 2025 and 2024 are presented as follows:


	Three Months Ended				Six Months Ended
	June 30, 2025		June 30, 2024		June 30, 2025		June 30, 2024

	(dollars in thousands)

Balance, beginning	$	7,764	$	9,207	$	8,273	$	9,529
Provisions (credited) to expense		(624)		1,153		(1,133)		831
Balance, ending	$	7,140	$	10,360	$	7,140	$	10,360