v3.26.1
Loans
 3 Months Ended
Mar. 31, 2026
Receivables [Abstract]  
Loans LOANS
The following table presents a summary of loans by category:
($ in thousands)March 31, 2026December 31, 2025
C&I$5,172,817 $5,236,473 
Real estate loans: 
Commercial - investor owned2,960,830 2,986,906 
Commercial - owner occupied2,487,565 2,460,761 
Construction and land development669,921 689,357 
Residential345,568 367,127 
Total real estate loans6,463,884 6,504,151 
Consumer57,050 60,469 
Loans, before unearned loan fees11,693,751 11,801,093 
Unearned loan fees, net(971)(755)
Loans, including unearned loan fees$11,692,780 $11,800,338 

The loan balance includes a net premium on acquired loans of $0.8 million and $0.2 million at March 31, 2026 and December 31, 2025, respectively. At March 31, 2026 and December 31, 2025, loans and securities of $6.1 billion and $6.3 billion, respectively, were pledged to the FHLB and the Federal Reserve.

Accrued interest totaled $60.7 million and $58.3 million at March 31, 2026 and December 31, 2025, respectively, and was reported in “Other assets” on the Consolidated Balance Sheets.

The Company sold the guaranteed portion of SBA 7(a) loans of $25.4 million, resulting in a gain on sale of $1.4 million during the three months ended March 31, 2026. During the three months ended March 31, 2025, the Company sold the guaranteed portion of SBA 7(a) loans of $31.3 million, resulting in a gain on sale of $1.9 million.
The Company had $0.2 million of consumer mortgage loans secured by residential real estate in process of foreclosure at March 31, 2026 and December 31, 2025, respectively.

The following table presents a summary of the activity, by loan category, in the ACL on loans for the three months ended March 31, 2026 and 2025 as follows:
($ in thousands)C&ICRE - investor ownedCRE -
owner occupied		Construction and land developmentResidential real estateConsumerTotal
ACL on loans:
Balance at December 31, 2025
$68,345 $31,565 $19,218 $11,016 $8,023 $1,855 $140,022 
Provision (benefit) for credit losses8,273 (412)(1,179)614 (595)(252)6,449 
Charge-offs(3,667)— — (1,039)(355)(156)(5,217)
Recoveries159 34 30 11 350 226 810 
Balance at March 31, 2026
$73,110 $31,187 $18,069 $10,602 $7,423 $1,673 $142,064 


($ in thousands)C&ICRE - investor ownedCRE -
owner occupied		Construction and land developmentResidential real estateConsumerTotal
ACL on loans:       
Balance at December 31, 2024
$63,231 $34,217 $20,400 $9,837 $6,534 $3,731 $137,950 
Provision (benefit) for credit losses5,748 (3,751)(1,966)2,264 1,056 584 3,935 
Charge-offs(591)— (362)— (225)(107)(1,285)
Recoveries1,499 85 288 13 379 80 2,344 
Balance at March 31, 2025
$69,887 $30,551 $18,360 $12,114 $7,744 $4,288 $142,944 
The CECL methodology incorporates various economic scenarios. The Company utilizes three forecasts in the model: Moody’s baseline, a stronger near-term growth upside and a moderate downside forecast. The Company weights these scenarios at 40%, 30%, and 30%, respectively, which added approximately $8.8 million to the ACL on loans over the baseline model at March 31, 2026. The forecasts incorporate an expectation that the federal funds rate will continue to fall in 2026, and the broader macroeconomic risks to the loan portfolio from the conflict in Iran. The Company has also recognized various risks posed by loans in certain segments, including the commercial office sector, by allocating additional reserves to those segments. Some of the key risks to the forecasts that could result in future provision for credit losses are market reactions to the Federal Reserve policy actions that could push the economy into a recession, persistently higher inflation (including the impact of tariffs), tightening in the credit markets, and weakness in the financial system.

In addition to the CECL methodology, the Company incorporates qualitative adjustments into the ACL on loans to capture credit risks inherent within the loan portfolio that are not captured in the discounted cash flow method model. Included in these risks are 1) changes in lending policies and procedures, 2) actual and expected changes in business and economic conditions, 3) changes in the nature and volume of the portfolio, 4) changes in lending management, 5) changes in volume and the severity of past due loans, 6) changes in the quality of the loan review system, 7) changes in the value of underlying collateral, 8) the existence and effect of concentrations of credit and 9) other factors such as the regulatory, legal and competitive environments and events such as natural disasters, pandemics and geopolitical matters. At March 31, 2026, the ACL on loans included a qualitative adjustment of approximately $39.9 million. Of this amount, approximately $21.4 million was allocated to sponsor finance loans due to their mostly unsecured nature.
The following tables present a summary of gross charge-offs by loan class and year of origination as of the periods indicated:
Three months ended March 31, 2026
Term Loans by Origination Year
($ in thousands)20262025202420232022PriorRevolving Loans Converted to Term LoansRevolving LoansTotal
C&I$— $— $608 $1,698 $— $47 $— $1,010 $3,363 
Real estate:
Construction and land development— — — — — 1,039 — — 1,039 
Residential— 355 — — — — — — 355 
Consumer— — — — — 5 — — 5 
Total charge-offs by origination year$— $355 $608 $1,698 $— $1,091 $— $1,010 $4,762 
Total gross charge-offs by performing status455 
Total gross charge-offs$5,217 

Three months ended December 31, 2025
Term Loans by Origination Year
($ in thousands)20252024202320222021PriorRevolving Loans Converted to Term LoansRevolving LoansTotal
C&I$30 $2,159 $4,661 $1,280 $35 $1,167 $1,651 $11,870 $22,853 
Real estate:
Commercial - investor owned— — — — 3,972 — — — 3,972 
Commercial - owner occupied— 594 285 — 284 898 — — 2,061 
Construction and land development— — — 146 — 3,135 — — 3,281 
Residential— — — — — 646 266 — 912 
Consumer— — — — 177 68 5 — 250 
Total charge-offs by origination year$30 $2,753 $4,946 $1,426 $4,468 $5,914 $1,922 $11,870 $33,329 
Total gross charge-offs by performing status1,187 
Total gross charge-offs$34,516 
The following tables present the recorded balance in nonperforming loans by category, excluding government guaranteed balances as of the dates indicated:
March 31, 2026
($ in thousands)NonaccrualLoans over 90 days past due and still accruing interestTotal nonperforming loansNonaccrual loans with no allowance
C&I$13,900 $4,357 $18,257 $667 
Real estate: 
Commercial - investor owned34,194 — 34,194 24,958 
Commercial - owner occupied7,983 — 7,983 4,970 
Construction and land development1,505 — 1,505 980 
Residential2,976 — 2,976 2,735 
Consumer— 26 26 — 
Total$60,558 $4,383 $64,941 $34,310 

December 31, 2025
($ in thousands)NonaccrualLoans over 90 days past due and still accruing interestTotal nonperforming loansNonaccrual loans with no allowance
C&I$26,359 $1,620 $27,979 $14,800 
Real estate:
Commercial - investor owned36,988 — 36,988 23,685 
Commercial - owner occupied9,338 — 9,338 7,927 
Construction and land development155 — 155 — 
Residential8,340 — 8,340 8,099 
Consumer— 9 9 — 
Total$81,180 $1,629 $82,809 $54,511 

The nonperforming loan balances at March 31, 2026 and December 31, 2025 exclude government guaranteed balances of $28.2 million and $28.9 million respectively. Interest income recognized on nonaccrual loans was immaterial during the three months ended March 31, 2026 and 2025.
The following tables present a summary of collateral-dependent nonperforming loans by class of loan as of the dates indicated:
March 31, 2026
Type of Collateral
($ in thousands)CREResidential Real EstateBlanket LienOther
C&I$— $13 $5,605 $3,441 
Real estate:
Commercial - investor owned32,691 — — — 
Commercial - owner occupied5,065 — — — 
Construction and land development— 980 — — 
Residential— 2,275 — 460 
Total$37,756 $3,268 $5,605 $3,901 

December 31, 2025
Type of Collateral
($ in thousands)CREResidential Real EstateBlanket LienOther
C&I$— $19 $3,391 $15,644 
Real estate:
Commercial - investor owned35,701 — — — 
Commercial - owner occupied4,610 456 — — 
Residential— 8,099 — — 
Total$40,311 $8,574 $3,391 $15,644 

The following tables present a summary of aging of the recorded balance in past due loans by class and category as of the dates indicated:

March 31, 2026
($ in thousands)30-89 Days
 Past Due		90 or More
Days
Past Due		Total
Past Due		CurrentTotal
C&I$8,405 $19,560 $27,965 $5,144,852 $5,172,817 
Real estate:
Commercial - investor owned37,449 34,985 72,434 2,888,396 2,960,830 
Commercial - owner occupied25,775 14,625 40,400 2,447,165 2,487,565 
Construction and land development1,415 1,968 3,383 666,538 669,921 
Residential951 2,976 3,927 341,641 345,568 
Consumer154 26 180 56,870 57,050 
Loans, before unearned loan fees$74,149 $74,140 $148,289 $11,545,462 $11,693,751 
Unearned loan fees, net(971)
Total$11,692,780 
December 31, 2025
($ in thousands)30-89 Days
 Past Due		90 or More
Days
Past Due		Total
Past Due		CurrentTotal
C&I$6,822 $25,327 $32,149 $5,204,324 $5,236,473 
Real estate:
Commercial - investor owned3,627 38,063 41,690 2,945,216 2,986,906 
Commercial - owner occupied5,274 21,110 26,384 2,434,377 2,460,761 
Construction and land development4,881 583 5,464 683,893 689,357 
Residential7,457 2,516 9,973 357,154 367,127 
Consumer57 9 66 60,403 60,469 
Loans, before unearned loan fees$28,118 $87,608 $115,726 $11,685,367 $11,801,093 
Unearned loan fees, net(755)
Total$11,800,338 

The ACL on loans incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon origination or acquisition. The starting point for the estimate of the ACL on loans is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. The Company uses a probability of default and loss given default model to determine the ACL on loans.

An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification. The effect of most modifications made to borrowers experiencing financial difficulty is already included in the ACL on loans because of the measurement methodologies used to estimate the allowance.

The most common concession the Company provides to borrowers experiencing financial difficulty is a term extension. In limited circumstances, the Company may modify loans by providing principal forgiveness or an interest rate reduction. When principal forgiveness is provided, the amortized cost basis of the asset is written off against the ACL on loans. The amount of the principal forgiveness is deemed to be uncollectible; therefore, that portion of the loan is written off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the ACL on loans.

In some cases, the Company will modify a loan by providing multiple types of concessions. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as an interest rate reduction or principal forgiveness, may be granted.
The following tables show the recorded balance at the end of the dates listed for loans modified to borrowers experiencing financial difficulty, disaggregated by loan class and type of concession granted:
Three months ended
Term ExtensionPayment DelayTotal
($ in thousands)March 31, 2026Percent of Total Loan ClassMarch 31, 2026Percent of Total Loan ClassMarch 31, 2026Percent of Total Loan Class
C&I$6,677 0.13 %$5,851 0.11 %$12,528 0.24 %
Real estate:
Commercial - owner occupied4,766 0.19 %— — %4,766 0.19 %
Construction and land development2,980 0.45 %— — %2,980 0.45 %
Total$14,423 $5,851 $20,274 

Three months ended
Term Extension
($ in thousands)March 31, 2025Percent of Total Loan Class
C&I$3,154 0.07 %
Real estate:
Commercial - owner occupied4,905 0.21 %
Residential25 0.01 %
Total$8,084 
The following tables summarize the financial impacts of loan modifications made to borrowers experiencing financial difficulty by class and modification type outstanding at the date indicated:

Three months ended March 31, 2026
($ in thousands)Financial Effect
Payment Delay
C&I
Payments were delayed for a weighted average amount of $500.
Term Extension
C&I
Maturity dates were extended for a weighted average of 6 months.
Real estate:
Commercial - owner occupied
Maturity dates were extended for a weighted average of 3 months.
Construction and land development
Maturity dates were extended for a weighted average of 5 months.

Three months ended March 31, 2025
Financial Effect
Term Extension
C&I
Maturity dates were extended for a weighted average of 6 months.
Real estate:
Commercial - owner occupied
Maturity dates were extended for a weighted average of 18 months.
Residential
Maturity dates were extended for a weighted average of 3 months.
The following tables present the aging of the recorded balance of modified loans in the last 12 months by class at the date indicated:

March 31, 2026
($ in thousands)Current30-89 Days
 Past Due		90 or More
Days
Past Due		Total
C&I$47,555 $— $— $47,555 
Real estate:
Commercial - investor owned240 — — 240 
Commercial - owner occupied15,224 — — 15,224 
Construction and land development2,980 — — 2,980 
Residential— — 460 460 
Total$65,999 $— $460 $66,459 

March 31, 2025
($ in thousands)Current30-89 Days
 Past Due		90 or More
Days
Past Due		Total
C&I$32,126 $— $1,609 $33,735 
Real estate:
Commercial - investor owned252 — — 252 
Commercial - owner occupied16,817 — 906 17,723 
Residential24 — — 24 
Total$49,219 $— $2,515 $51,734 

There were no loans that experienced a default during the three months ended March 31, 2026 or March 31, 2025, respectively, subsequent to being granted a modification in the preceding twelve months. Default is defined as movement to nonperforming status, foreclosure or charge-off.

As of March 31, 2026 and December 31, 2025, the Company allocated an immaterial amount in specific reserves to loans that have been restructured.
The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, payment experience, credit documentation, and current economic factors among other factors. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings:
•Grades 1, 2, and 3 – Includes loans to borrowers with a continuous record of strong earnings, sound balance sheet condition and capitalization, ample liquidity with solid cash flow, and whose management team has experience and depth within their industry.
•Grade 4 – Includes loans to borrowers with positive trends in profitability, satisfactory capitalization and balance sheet condition, and sufficient liquidity and cash flow.
•Grade 5 – Includes loans to borrowers that may display fluctuating trends in sales, profitability, capitalization, liquidity, and cash flow.
•Grade 6 – Includes loans to borrowers where an adverse change or perceived weakness has occurred, but may be correctable in the near future. Alternatively, this rating category may also include circumstances where the borrower is starting to reverse a negative trend or condition, or has recently been upgraded from a 7, 8, or 9 rating.
•Grade 7 – Special Mention credits are borrowers that have experienced financial setback of a nature that is not determined to be severe or influence ‘ongoing concern’ expectations. Although possible, no loss is anticipated, due to strong collateral and/or guarantor support.
•Grade 8 – Substandard credits include those borrowers characterized by significant losses and sustained downward trends in balance sheet condition, liquidity, and cash flow. Repayment reliance may have shifted to secondary sources. Collateral exposure may exist and additional reserves may be warranted.
•Grade 9 – Doubtful credits include borrowers that may show deteriorating trends that are unlikely to be corrected. Collateral values may appear insufficient for full recovery, therefore requiring a partial charge-off, or debt renegotiation with the borrower. The borrower may have declared bankruptcy or bankruptcy is likely in the near term. All doubtful rated credits will be on non-accrual.
The recorded investment by risk category of the loans by class and year of origination is presented in the following tables as of the dates indicated:
March 31, 2026
Term Loans by Origination Year
($ in thousands)20262025202420232022PriorRevolving Loans Converted to Term LoansRevolving LoansTotal
C&I
Pass (1-6)$368,169 $1,638,432 $640,324 $488,237 $266,024 $154,393 $89,429 $1,136,018 $4,781,026 
Special Mention (7)31,611 61,481 12,028 7,216 3,417 4,508 5,875 73,327 199,463 
Classified (8-9)6,783 45,363 12,185 4,228 10,728 2,630 22,549 47,008 151,474 
Total C&I$406,563 $1,745,276 $664,537 $499,681 $280,169 $161,531 $117,853 $1,256,353 $5,131,963 
CRE-investor owned
Pass (1-6)$170,747 $793,049 $401,821 $341,585 $356,951 $601,441 $17,587 $49,950 $2,733,131 
Special Mention (7)10,642 14,099 50,313 5,165 — 18,523 32,531 177 131,450 
Classified (8-9)649 18,222 929 360 6,922 50,947 — — 78,029 
Total CRE-investor owned$182,038 $825,370 $453,063 $347,110 $363,873 $670,911 $50,118 $50,127 $2,942,610 
CRE-owner occupied
Pass (1-6)$149,728 $442,132 $293,677 $289,322 $350,642 $754,741 $1,681 $34,011 $2,315,934 
Special Mention (7)4,309 7,545 3,904 17,123 5,845 18,351 — — 57,077 
Classified (8-9)617 18,326 7,979 11,780 19,970 37,521 228 — 96,421 
Total CRE-owner occupied$154,654 $468,003 $305,560 $318,225 $376,457 $810,613 $1,909 $34,011 $2,469,432 
Construction real estate
Pass (1-6)$87,932 $296,858 $183,343 $26,509 $6,834 $3,654 $44,629 $4,493 $654,252 
Special Mention (7)— 6,997 — 1,136 39 — — — 8,172 
Classified (8-9)— 2,980 1,412 482 405 — — — 5,279 
Total Construction real estate$87,932 $306,835 $184,755 $28,127 $7,278 $3,654 $44,629 $4,493 $667,703 
Residential real estate
Pass (1-6)$12,498 $45,879 $21,789 $28,307 $27,145 $104,629 $1,628 $84,976 $326,851 
Special Mention (7)— 1,099 1,213 22 82 773 338 640 4,167 
Classified (8-9)— 3,479 — 2,694 — 8,268 — 140 14,581 
Total residential real estate$12,498 $50,457 $23,002 $31,023 $27,227 $113,670 $1,966 $85,756 $345,599 
Consumer
Pass (1-6)$175 $1,329 $689 $742 $187 $40,930 $111 $8,869 $53,032 
Special Mention (7)— — — — — — — — — 
Classified (8-9)— 13 — 1 — 5 — 3 22 
Total Consumer$175 $1,342 $689 $743 $187 $40,935 $111 $8,872 $53,054 
Total loans classified by risk category$843,860 $3,397,283 $1,631,606 $1,224,909 $1,055,191 $1,801,314 $216,586 $1,439,612 $11,610,361 
Total loans classified by performing status82,419 
Total loans$11,692,780 
December 31, 2025
Term Loans by Origination Year
($ in thousands)20252024202320222021PriorRevolving Loans Converted to Term LoansRevolving LoansTotal
C&I
Pass (1-6)$1,867,472 $793,869 $521,429 $298,735 $84,618 $96,374 $94,043 $1,153,331 $4,909,871 
Special Mention (7)17,000 22,548 26,475 3,835 4,871 2,113 22,071 48,303 147,216 
Classified (8-9)47,637 26,370 4,861 10,964 54 845 24,043 36,659 151,433 
Total C&I$1,932,109 $842,787 $552,765 $313,534 $89,543 $99,332 $140,157 $1,238,293 $5,208,520 
CRE-investor owned
Pass (1-6)$857,292 $405,208 $380,247 $377,479 $287,917 $376,426 $55,616 $45,784 $2,785,969 
Special Mention (7)40,134 53,306 1,934 — 9,029 4,571 1,891 — 110,865 
Classified (8-9)17,570 — — 6,965 26,697 20,469 — — 71,701 
Total CRE-investor owned$914,996 $458,514 $382,181 $384,444 $323,643 $401,466 $57,507 $45,784 $2,968,535 
CRE-owner occupied
Pass (1-6)$471,422 $304,147 $296,817 $371,117 $364,894 $445,806 $3,391 $38,545 $2,296,139 
Special Mention (7)7,814 5,801 14,730 12,440 4,432 15,019 — — 60,236 
Classified (8-9)18,006 5,562 11,444 15,503 13,671 22,281 — — 86,467 
Total CRE-owner occupied$497,242 $315,510 $322,991 $399,060 $382,997 $483,106 $3,391 $38,545 $2,442,842 
Construction real estate
Pass (1-6)$372,006 $223,449 $37,889 $9,492 $3,398 $1,316 $24,961 $3,148 $675,659 
Special Mention (7)2,000 — 23 41 — — 8,698 — 10,762 
Classified (8-9)— — 483 676 — 4 — — 1,163 
Total Construction real estate$374,006 $223,449 $38,395 $10,209 $3,398 $1,320 $33,659 $3,148 $687,584 
Residential real estate
Pass (1-6)$61,245 $24,136 $27,378 $28,920 $33,857 $76,749 $7,342 $82,753 $342,380 
Special Mention (7)3,157 1,219 23 296 84 793 — 976 6,548 
Classified (8-9)1,831 — 2,733 — 6,466 7,055 — 80 18,165 
Total residential real estate$66,233 $25,355 $30,134 $29,216 $40,407 $84,597 $7,342 $83,809 $367,093 
Consumer
Pass (1-6)$1,466 $798 $790 $199 $26,824 $17,513 $— $8,511 $56,101 
Special Mention (7)— — — — — — — — — 
Classified (8-9)— — 2 — — 10 — — 12 
Total Consumer$1,466 $798 $792 $199 $26,824 $17,523 $— $8,511 $56,113 
Total loans classified by risk category$3,786,052 $1,866,413 $1,327,258 $1,136,662 $866,812 $1,087,344 $242,056 $1,418,090 $11,730,687 
Total loans classified by performing status69,651 
Total loans$11,800,338 
In the tables above, loan originations in 2026 and 2025 with a classification of “special mention” or “classified” primarily represent renewals or modifications initially underwritten and originated in prior years.
The following tables summarize the risk category of the loans by loan type as of the dates indicated:

March 31, 2026
($ in thousands)Pass (1-6)Special Mention (7)Classified (8-9)Total
C&I$4,781,026 $199,463 $151,474 $5,131,963 
Real estate:
Commercial - investor owned2,733,131 131,450 78,029 2,942,610 
Commercial - owner occupied2,315,934 57,077 96,421 2,469,432 
Construction and land development654,252 8,172 5,279 667,703 
Residential326,851 4,167 14,581 345,599 
Consumer53,032 — 22 53,054 
Total loans classified by risk category$10,864,226 $400,329 $345,806 $11,610,361 
Total loans classified by performing status82,419 
$11,692,780 

December 31, 2025
($ in thousands)Pass (1-6)Special Mention (7)Classified (8-9)Total
C&I$4,909,871 $147,216 $151,433 $5,208,520 
Real estate:
Commercial - investor owned2,785,969 110,865 71,701 2,968,535 
Commercial - owner occupied2,296,139 60,236 86,467 2,442,842 
Construction and land development675,659 10,762 1,163 687,584 
Residential342,380 6,548 18,165 367,093 
Consumer56,101 — 12 56,113 
Total loans classified by risk category$11,066,119 $335,627 $328,941 $11,730,687 
Total loans classified by performing status69,651 
$11,800,338 

In the risk category tables above, guaranteed loan balances are included with a classification of “pass” due to the nature of these loans.

For certain loans, the Company evaluates credit quality based on the aging status.

The following tables present the recorded balance of loans based on payment activity as of the dates indicated:

March 31, 2026
($ in thousands)PerformingNon PerformingTotal
C&I$36,394 $176 $36,570 
Real estate:
Commercial - investor owned16,110 — 16,110 
Commercial - owner occupied25,814 — 25,814 
Residential582 — 582 
Consumer3,317 26 3,343 
Total$82,217 $202 $82,419 
December 31, 2025
($ in thousands)PerformingNon PerformingTotal
C&I$22,778 $318 $23,096 
Real estate:
Commercial - investor owned16,323 — 16,323 
Commercial - owner occupied26,121 — 26,121 
Residential589 — 589 
Consumer3,513 9 3,522 
Total$69,324 $327 $69,651