v3.26.1
Loans Receivable and Allowance for Credit Losses
 3 Months Ended
Mar. 31, 2026
Receivables [Abstract]  
Loans Receivable and Allowance for Credit Losses Loans Receivable and Allowance for Credit Losses
The following table presents the composition of the Company’s loans held-for-investment outstanding as of March 31, 2026 and December 31, 2025:
($ in thousands)March 31, 2026December 31, 2025
Commercial:
C&I$19,550,953 $18,650,755 
CRE:
CRE15,491,057 15,407,088 
Multifamily residential5,129,247 5,112,328 
Construction and land811,999 742,357 
Total CRE21,432,303 21,261,773 
Total commercial40,983,256 39,912,528 
Consumer:
Residential mortgage:
Single-family residential (“SFR”)
15,119,709 15,002,549 
Home equity lines of credit (“HELOCs”)
1,945,867 1,911,897 
Total residential mortgage17,065,576 16,914,446 
Other consumer51,917 51,198 
Total consumer17,117,493 16,965,644 
Total loans held-for-investment (1)
$58,100,749 $56,878,172 
ALLL
(835,874)(809,773)
Loans held-for-investment, net (1)
$57,264,875 $56,068,399 
(1)Includes $17 million and $26 million of net deferred loan fees and net unamortized premiums as of March 31, 2026 and December 31, 2025, respectively.

Accrued interest receivable on loans held-for-investment was $249 million and $251 million as of March 31, 2026 and December 31, 2025, respectively, and was included in Other assets on the Consolidated Balance Sheet. The interest income recognized and reversed on nonaccrual loans was immaterial for both the three months ended March 31, 2026 and 2025. For the Company’s accounting policy on accrued interest receivable related to loans held-for-investment, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Loans Held-for-Investment to the Consolidated Financial Statements of the Company’s 2025 Form 10-K. The Company also has loans held-for-sale. For the Company’s accounting policy on loans held-for-sale, refer to Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Loans Held-for-Sale to the Consolidated Financial Statements in the Company’s 2025 Form 10-K.

The Company’s FRB and FHLB borrowings are primarily secured by loans held-for-investment. Loans held-for-investment totaling $42.8 billion and $41.8 billion were pledged to secure borrowings and provide additional borrowing capacity as of March 31, 2026 and December 31, 2025, respectively.

Credit Quality Indicators

All loans are subject to the Company’s credit review and monitoring process. For the commercial loan portfolio, loans are risk rated based on an analysis of the borrower’s current payment performance or delinquency, repayment sources, financial and liquidity factors, including industry and geographic considerations. For the consumer loan portfolio, payment performance or delinquency is typically the driving indicator for risk ratings.

The Company utilizes internal credit risk ratings to assign each individual loan a risk rating of 1 through 10:
•Pass — loans risk rated 1 through 5 are assigned an internal risk rating category of “Pass.” Loans risk rated 1 are typically loans fully secured by cash. Pass loans have sufficient sources of repayment to repay the loan in full, in accordance with all terms and conditions.
•Special mention — loans assigned a risk rating of 6 have potential weaknesses that warrant closer attention by management; these are assigned an internal risk rating category of “Special Mention.”
•Substandard — loans assigned a risk rating of 7 or 8 have well-defined weaknesses that may jeopardize the full and timely repayment of the loan; these are assigned an internal risk rating category of “Substandard.”
•Doubtful — loans assigned a risk rating of 9 have insufficient sources of repayment and a high probability of loss; these are assigned an internal risk rating category of “Doubtful.”
•Loss — loans assigned a risk rating of 10 are uncollectible and of such little value that they are no longer considered bankable assets; these are assigned an internal risk rating category of “Loss.”

Loan exposures categorized as criticized consist of special mention, substandard, doubtful and loss categories. The Company reviews the internal risk ratings of its loan portfolio on a regular basis, and adjusts the ratings based on changes in the borrowers’ financial status and the collectability of the loans.
The following tables summarize the Company’s loans held-for-investment and year-to-date gross write-offs by loan portfolio segments, internal risk ratings and vintage year as of the periods presented. The vintage year is the year of loan origination, renewal or major modification. Gross write-offs in the following tables are for the three months ended March 31, 2026, and the year ended December 31, 2025. Revolving loans that are converted to term loans presented in the tables below are excluded from the term loans by vintage year columns.
March 31, 2026
Term Loans by Origination Year
($ in thousands)20262025202420232022PriorRevolving Loans
Revolving Loans Converted to Term Loans
Total
Commercial:
C&I:
Pass$665,659 $2,906,360 $1,485,504 $812,869 $444,075 $609,918 $12,030,255 $69,610 $19,024,250 
Criticized (accrual)25 400 38,075 34,555 85,971 50,822 255,792 — 465,640 
Criticized (nonaccrual)
— 2,890 4,280 14,989 103 38,680 121 — 61,063 
Total C&I665,684 2,909,650 1,527,859 862,413 530,149 699,420 12,286,168 69,610 19,550,953 
Gross write-offs (1)
— 38 89 8,193 4,601 3,202 10 — 16,133 
CRE:
Pass553,283 2,597,867 1,546,632 1,943,710 3,100,174 5,050,710 72,238 52,175 14,916,789 
Criticized (accrual)— 30,166 31,082 103,021 155,361 218,143 — — 537,773 
Criticized (nonaccrual)
— 2,013 — 18,785 — 15,697 — — 36,495 
Subtotal CRE553,283 2,630,046 1,577,714 2,065,516 3,255,535 5,284,550 72,238 52,175 15,491,057 
Gross write-offs
— 1,305 — — — — — — 1,305 
Multifamily residential:
Pass229,288 840,553 326,725 429,290 1,132,216 2,125,158 28,102 3,804 5,115,136 
Criticized (accrual)— — — — 5,151 8,685 — — 13,836 
Criticized (nonaccrual)
— — — — — 275 — — 275 
Subtotal multifamily residential229,288 840,553 326,725 429,290 1,137,367 2,134,118 28,102 3,804 5,129,247 
Construction and land:
Pass56,612 270,045 122,595 236,324 85,197 16,787 5,105 — 792,665 
Criticized (nonaccrual)
— — — — 19,334 — — — 19,334 
Subtotal construction and land56,612 270,045 122,595 236,324 104,531 16,787 5,105 — 811,999 
Total CRE839,183 3,740,644 2,027,034 2,731,130 4,497,433 7,435,455 105,445 55,979 21,432,303 
Total CRE gross write-offs (1)
— 1,305 — — — — — — 1,305 
Total commercial$1,504,867 $6,650,294 $3,554,893 $3,593,543 $5,027,582 $8,134,875 $12,391,613 $125,589 $40,983,256 
Total commercial gross write-offs (1)
$— $1,343 $89 $8,193 $4,601 $3,202 $10 $— $17,438 
March 31, 2026
Term Loans by Origination Year
($ in thousands)20262025202420232022PriorRevolving Loans
Revolving Loans Converted to Term Loans
Total
Consumer:
Residential mortgage:
SFR:
Pass (2)
$756,418 $2,727,809 $1,696,060 $2,233,611 $2,737,115 $4,906,622 $— $— $15,057,635 
Criticized (accrual)— 6,395 4,497 6,832 3,751 6,995 — — 28,470 
Criticized (nonaccrual) (2)
— 9,003 5,848 4,869 3,188 10,696 — — 33,604 
Subtotal SFR mortgage
756,418 2,743,207 1,706,405 2,245,312 2,744,054 4,924,313 — — 15,119,709 
Gross write-offs (1)
7 3 20 4 8 79 — — 121 
HELOCs:
Pass400 13,186 2,254 5,196 9,987 27,136 1,786,887 67,734 1,912,780 
Criticized (accrual)— 963 416 352 — 1,092 980 326 4,129 
Criticized (nonaccrual)
— 1,123 133 2,525 2,932 16,895 826 4,524 28,958 
Subtotal HELOCs400 15,272 2,803 8,073 12,919 45,123 1,788,693 72,584 1,945,867 
Total residential mortgage756,818 2,758,479 1,709,208 2,253,385 2,756,973 4,969,436 1,788,693 72,584 17,065,576 
Total residential mortgage gross write-offs (1)
7 3 20 4 8 79 — — 121 
Other consumer:
Pass1,369 24,481 — — 4,651 5,694 15,683 — 51,878 
Criticized (accrual)10 — — — — — — — 10 
Criticized (nonaccrual)
— — — — — — 29 — 29 
Total other consumer1,379 24,481 — — 4,651 5,694 15,712 — 51,917 
Total consumer$758,197 $2,782,960 $1,709,208 $2,253,385 $2,761,624 $4,975,130 $1,804,405 $72,584 $17,117,493 
Total consumer gross write-offs (1)
$7$3$20$4$8$79$—$—$121
Total loans held-for-investment:
Pass$2,263,029 $9,380,301 $5,179,770 $5,661,000 $7,513,415 $12,742,025 $13,938,270 $193,323 $56,871,133 
Criticized (accrual)35 37,924 74,070 144,760 250,234 285,737 256,772 326 1,049,858 
Criticized (nonaccrual)
— 15,029 10,261 41,168 25,557 82,243 976 4,524 179,758 
Total$2,263,064 $9,433,254 $5,264,101 $5,846,928 $7,789,206 $13,110,005 $14,196,018 $198,173 $58,100,749 
Total loans held-for-investment gross write-offs (1)
$7 $1,346 $109 $8,197 $4,609 $3,281 $10 $— $17,559 
December 31, 2025
Term Loans by Origination Year
($ in thousands)20252024202320222021PriorRevolving Loans
Revolving Loans Converted to Term Loans
Total
Commercial:
C&I:
Pass$3,013,368 $1,717,361 $880,267 $536,461 $391,413 $302,893 $11,308,551 $67,968 $18,218,282 
Criticized (accrual)572 35,223 1,662 93,562 83,813 6,771 158,626 — 380,229 
Criticized (nonaccrual)2,922 4,733 26,810 1,640 9,525 6,526 88 — 52,244 
Total C&I3,016,862 1,757,317 908,739 631,663 484,751 316,190 11,467,265 67,968 18,650,755 
Gross write-offs (1)
2,617 1,199 28,752 4,643 1,063 3,170 24 — 41,468 
CRE:
Pass2,615,789 1,562,420 2,015,433 3,188,363 1,708,927 3,607,918 78,712 47,512 14,825,074 
Criticized (accrual)30,275 29,807 116,862 134,018 48,569 183,937 — — 543,468 
Criticized (nonaccrual)3,317 — 4,172 7,439 12,330 11,288 — — 38,546 
Subtotal CRE2,649,381 1,592,227 2,136,467 3,329,820 1,769,826 3,803,143 78,712 47,512 15,407,088 
Gross write-offs (1)
8,932 — — 160 19 15,126 — — 24,237 
Multifamily residential:
Pass895,323 338,209 478,782 1,138,693 663,916 1,547,124 32,207 3,820 5,098,074 
Criticized (accrual)— — — 5,175 — 8,787 — — 13,962 
Criticized (nonaccrual)— — — — — 292 — — 292 
Subtotal multifamily residential895,323 338,209 478,782 1,143,868 663,916 1,556,203 32,207 3,820 5,112,328 
Gross write-offs (1)
— — — — — 8 — — 8 
Construction and land:
Pass246,380 109,799 247,482 90,086 13,437 3,462 3,901 — 714,547 
Criticized (nonaccrual)— 8,897 — 18,913 — — — — 27,810 
Subtotal construction and land246,380 118,696 247,482 108,999 13,437 3,462 3,901 — 742,357 
Total CRE3,791,084 2,049,132 2,862,731 4,582,687 2,447,179 5,362,808 114,820 51,332 21,261,773 
Total CRE gross write-offs (1)
8,932 — — 160 19 15,134 — — 24,245 
Total commercial$6,807,946 $3,806,449 $3,771,470 $5,214,350 $2,931,930 $5,678,998 $11,582,085 $119,300 $39,912,528 
Total commercial gross write-offs (1)
$11,549 $1,199 $28,752 $4,803 $1,082 $18,304 $24 $— $65,713 
December 31, 2025
Term Loans by Origination Year
($ in thousands)20252024202320222021PriorRevolving LoansRevolving Loans Converted to Term LoansTotal
Consumer:
Residential mortgage:
SFR:
Pass (2)
$2,861,764 $1,837,821 $2,349,242 $2,808,694 $1,860,110 $3,228,996 $— $— $14,946,627 
Criticized (accrual)3,157 3,646 5,589 5,427 235 9,356 — — 27,410 
Criticized (nonaccrual) (2)
4,566 891 3,445 4,617 1,620 13,373 — — 28,512 
Subtotal SFR mortgage
2,869,487 1,842,358 2,358,276 2,818,738 1,861,965 3,251,725 — — 15,002,549 
Gross write-offs (1)
— 14 — — — — — — 14 
HELOCs:
Pass13,652 4,796 4,740 5,258 11,233 22,213 1,750,894 70,577 1,883,363 
Criticized (accrual)1,879 — 97 140 287 526 6,784 1,654 11,367 
Criticized (nonaccrual)1,288 13 379 2,610 1,232 7,033 — 4,612 17,167 
Subtotal HELOCs16,819 4,809 5,216 8,008 12,752 29,772 1,757,678 76,843 1,911,897 
Gross write-offs (1)
— — — — — — — 6 6 
Total residential mortgage2,886,306 1,847,167 2,363,492 2,826,746 1,874,717 3,281,497 1,757,678 76,843 16,914,446 
Total residential mortgage gross write-offs (1)
— 14 — — — — — 6 20 
Other consumer:
Pass25,146 — — 4,635 129 5,570 15,576 — 51,056 
Criticized (nonaccrual)— — 49 — — — 93 — 142 
Total other consumer25,146 — 49 4,635 129 5,570 15,669 — 51,198 
Total consumer$2,911,452 $1,847,167 $2,363,541 $2,831,381 $1,874,846 $3,287,067 $1,773,347 $76,843 $16,965,644 
Total consumer gross write-offs (1)
$— $14 $— $— $— $— $— $6 $20 
Total loans held-for-investment:
Pass$9,671,422 $5,570,406 $5,975,946 $7,772,190 $4,649,165 $8,718,176 $13,189,841 $189,877 $55,737,023 
Criticized (accrual)35,883 68,676 124,210 238,322 132,904 209,377 165,410 1,654 976,436 
Criticized (nonaccrual)12,093 14,534 34,855 35,219 24,707 38,512 181 4,612 164,713 
Total$9,719,398 $5,653,616 $6,135,011 $8,045,731 $4,806,776 $8,966,065 $13,355,432 $196,143 $56,878,172 
Total loans held-for-investment gross write-offs (1)
$11,549 $1,213 $28,752 $4,803 $1,082 $18,304 $24 $6 $65,733 
(1)Excludes gross write-offs associated with loans the Company sold or settled.
(2)$1 million of nonaccrual loans whose payments were guaranteed by the Federal Housing Administration were classified with a “Pass” rating as of both March 31, 2026 and December 31, 2025.
Nonaccrual and Past Due Loans

Loans that are 90 or more days past due are generally placed on nonaccrual status unless the loan is well-collateralized and in the process of collection. Loans that are less than 90 days past due but have identified deficiencies, such as when the full collection of principal or interest becomes uncertain, are also placed on nonaccrual status. The following tables present the aging analysis of loans held-for-investment as of March 31, 2026 and December 31, 2025:
March 31, 2026
($ in thousands)Current Accruing LoansAccruing Loans 30-59 Days Past DueAccruing Loans 60-89 Days Past DueTotal Accruing Past Due LoansTotal Nonaccrual LoansTotal Loans
Commercial:
C&I$19,471,033 $13,266 $5,591 $18,857 $61,063 $19,550,953 
CRE:
CRE15,409,331 6,097 39,134 45,231 36,495 15,491,057 
Multifamily residential5,123,675 5,297 — 5,297 275 5,129,247 
Construction and land792,665 — — — 19,334 811,999 
Total CRE21,325,671 11,394 39,134 50,528 56,104 21,432,303 
Total commercial40,796,704 24,660 44,725 69,385 117,167 40,983,256 
Consumer:
Residential mortgage:
SFR
15,009,884 46,542 28,789 75,331 34,494 15,119,709 
HELOCs1,893,351 18,452 5,106 23,558 28,958 1,945,867 
Total residential mortgage16,903,235 64,994 33,895 98,889 63,452 17,065,576 
Other consumer51,791 60 37 97 29 51,917 
Total consumer16,955,026 65,054 33,932 98,986 63,481 17,117,493 
Total$57,751,730 $89,714 $78,657 $168,371 $180,648 $58,100,749 
December 31, 2025
($ in thousands)Current Accruing LoansAccruing Loans 30-59 Days Past DueAccruing Loans 60-89 Days Past DueTotal Accruing Past Due LoansTotal Nonaccrual LoansTotal Loans
Commercial:
C&I$18,572,467 $25,962 $82 $26,044 $52,244 $18,650,755 
CRE:
CRE15,354,548 10,525 3,469 13,994 38,546 15,407,088 
Multifamily residential5,110,783 1,253 — 1,253 292 5,112,328 
Construction and land714,547 — — — 27,810 742,357 
Total CRE21,179,878 11,778 3,469 15,247 66,648 21,261,773 
Total commercial39,752,345 37,740 3,551 41,291 118,892 39,912,528 
Consumer:
Residential mortgage:
SFR
14,899,224 46,010 27,674 73,684 29,641 15,002,549 
HELOCs1,860,080 23,328 11,322 34,650 17,167 1,911,897 
Total residential mortgage
16,759,304 69,338 38,996 108,334 46,808 16,914,446 
Other consumer50,979 56 21 77 142 51,198 
Total consumer16,810,283 69,394 39,017 108,411 46,950 16,965,644 
Total$56,562,628 $107,134 $42,568 $149,702 $165,842 $56,878,172 
The following table presents the amortized cost of loans on nonaccrual status for which there was no related ALLL as of both March 31, 2026 and December 31, 2025. Nonaccrual loans may not have an allowance for credit losses if the loan balances are well secured by collateral values and there is no loss expectation.
($ in thousands)March 31, 2026December 31, 2025
Commercial:
C&I$14,769 $21,723 
CRE32,874 33,705 
Construction and land19,334 27,810 
Total commercial66,977 83,238 
Consumer:
SFR
8,828 6,095 
HELOCs7,913 4,081 
Total consumer16,741 10,176 
Total nonaccrual loans with no related ALLL
$83,718 $93,414 

Foreclosed Assets

The Company acquires assets from borrowers through loan restructurings, workouts, or foreclosures. Assets acquired may include real properties (e.g., real estate, land, and buildings) and commercial and personal properties. The Company recognizes foreclosed assets upon receiving assets in satisfaction of a loan (e.g., taking legal title or physical possession).

Foreclosed assets, consisting of OREO and other nonperforming assets, are included in Other assets on the Consolidated Balance Sheet. The Company had $15 million of foreclosed assets as of March 31, 2026, compared with $21 million as of December 31, 2025. The Company commences the foreclosure process on consumer mortgage loans after a borrower becomes more than 120 days delinquent in accordance with the Consumer Financial Protection Bureau guidelines. The carrying value of the consumer real estate loans that were in an active or suspended foreclosure process was $26 million and $16 million as of March 31, 2026 and December 31, 2025, respectively.
Loan Modifications to Borrowers Experiencing Financial Difficulty

As part of the Company’s loss mitigation efforts, the Company may agree to modify the contractual terms of a loan to assist borrowers experiencing financial difficulty. The Company negotiates loan modifications on a case-by-case basis to achieve mutually agreeable terms that maximize loan collectability and meet the borrower’s financial needs. The Company considers various factors to identify borrowers experiencing financial difficulty. The primary factor for consumer loan borrowers is delinquency status. For commercial loan borrowers, these factors include credit risk ratings, the probability of loan risk rating downgrades, and overall risk profile changes. The modification may include, but is not limited to, payment delays, interest rate reductions, term extensions, principal forgiveness, or a combination of such modifications. Commercial loan borrowers that require immaterial modifications such as insignificant interest rate changes, short-term extensions (90 days or less) from the original maturity date, or temporary waivers or extensions of financial covenants which would not constitute material credit actions, are generally not considered to be experiencing financial difficulty and are not included in the disclosure. Insignificant payment deferrals (three months or less in the last 12 months) are also not included in the disclosure.
The following tables present the amortized cost of loans that were modified during the three months ended March 31, 2026 and 2025 by loan class and modification type:
Three Months Ended March 31, 2026
Modification Type
($ in thousands)Term ExtensionPayment Delay
Combination: Term Extension/ Payment Delay
TotalModification as a % of Loan Class
Commercial:
C&I$83,122 $— $— $83,122 0.43 %
CRE39,686 — — 39,686 0.26 %
Land and construction— 19,334 — 19,334 2.38 %
Total commercial122,808 19,334 — 142,142 0.35 %
Consumer:
SFR
— 5,680 — 5,680 0.04 %
HELOCs— 1,286 — 1,286 0.07 %
Total consumer— 6,966 — 6,966 0.04 %
Total$122,808 $26,300 $— $149,108 0.26 %
Three Months Ended March 31, 2025
Modification Type
($ in thousands)Term ExtensionPayment DelayCombination: Term Extension/ Payment DelayTotalModification as a % of Loan Class
Commercial:
C&I$15,651 $— $23,749 $39,400 0.23 %
CRE18,082 — — 18,082 0.12 %
Multifamily280 — — 280 0.01 %
Total commercial34,013 — 23,749 57,762 0.15 %
Consumer:
SFR
— 4,061 88 4,149 0.03 %
HELOCs— 975 911 1,886 0.10 %
Total consumer— 5,036 999 6,035 0.04 %
Total$34,013 $5,036 $24,748 $63,797 0.12 %
The following table presents the financial effects of the loan modifications for the three months ended March 31, 2026 and 2025 by loan class and modification type:
Financial Effects of Loan Modifications
for the Three Months Ended March 31,
20262025
($ in thousands)
Weighted-average Term Extension (in years)
Weighted-average Payment Delay
(in years)
Weighted-average Term Extension (in years)
Weighted-average Payment Delay
 (in years)
Commercial:
C&I1.10.01.11.0
CRE1.10.05.00.0
Land and construction0.00.70.00.0
Consumer:
SFR
0.00.510.01.0
HELOCs0.01.117.615.4

A modified loan may become delinquent and may result in a payment default (generally 90 days past due) subsequent to modification. The following tables present the amortized cost basis of modified loans that, within 12 months of the modification date, experienced a subsequent default during the three months ended March 31, 2026 and 2025.
Loans Modified that Subsequently Defaulted During the Three Months Ended March 31, 2026
($ in thousands)Term ExtensionPayment DelayTotal
Commercial:
C&I$— $28,639 $28,639 
Total commercial— 28,639 28,639 
Consumer:
SFR
— 3,202 3,202 
HELOCs— 295 295 
Total consumer— 3,497 3,497 
Total$— $32,136 $32,136 
Loans Modified that Subsequently Defaulted During the Three Months Ended March 31, 2025
($ in thousands)Term ExtensionPayment DelayTotal
Commercial:
C&I$— $2,193 $2,193 
CRE22,631 — 22,631 
Total commercial22,631 2,193 24,824 
Consumer:
SFR
$— $3,455 $3,455 
HELOCs— 2,121 2,121 
Total consumer— 5,576 5,576 
Total$22,631 $7,769 $30,400 
The Company monitors the performance of modified loans to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following tables present the performance of loans that were modified over the last 12 months as of March 31, 2026 and 2025:
Payment Performance as of March 31, 2026
($ in thousands)Current30 - 89 Days Past Due90+ Days Past DueTotal
Commercial:
C&I$178,896 $400 $28,639 $207,935 
CRE127,782 30,110 — 157,892 
Construction and land9,603 — 19,334 28,937 
Total commercial316,281 30,510 47,973 394,764 
Consumer:
SFR
22,385 8,602 3,723 34,710 
HELOCs12,927 3,843 — 16,770 
Total consumer35,312 12,445 3,723 51,480 
Total$351,593 $42,955 $51,696 $446,244 
Total nonaccrual loans included above
$31,559 $400 $51,696 $83,655 
Payment Performance as of March 31, 2025
($ in thousands)Current30 - 89 Days Past Due90+ Days Past DueTotal
Commercial:
C&I$80,147 $3,608 $1,515 $85,270 
CRE66,040 — — 66,040 
Multifamily residential280 — — 280 
Total commercial146,467 3,608 1,515 151,590 
Consumer:
SFR
8,122 3,469 3,597 15,188 
HELOCs5,137 2,369 3,796 11,302 
Total consumer13,259 5,838 7,393 26,490 
Total$159,726 $9,446 $8,908 $178,080 
Total nonaccrual loans included above
$29,925 $3,608 $8,908 $42,441 

As of March 31, 2026 and December 31, 2025, commitments to lend additional funds to borrowers whose loans were modified totaled $2 million and $14 million, respectively.
Allowance for Credit Losses

The Company has a current expected credit losses framework for all financial assets measured at amortized cost and certain off-balance sheet credit exposures. The Company’s allowance for credit losses, which includes both the ALLL and the allowance for unfunded credit commitments, is calculated with the objective of maintaining a reserve sufficient to absorb losses inherent in our credit portfolios. The measurement of the allowance for credit losses is based on management’s best estimate of lifetime expected credit losses, periodic evaluation of the loan portfolio, lending-related commitments and other relevant factors.

The allowance for credit losses is deducted from the amortized cost basis of a financial asset or a group of financial assets so that the balance sheet reflects the net amount the Company expects to collect. Amortized cost is the principal balance outstanding, net of purchase premiums and discounts, deferred fees and costs, and escrow advances. Subsequent changes in expected credit losses are recognized in net income as a provision for, or a reversal of, credit loss expense.
The allowance for credit losses estimation involves procedures to consider the unique risk characteristics of the portfolio segments. The majority of the Company’s credit exposures that share risk characteristics with other similar exposures are collectively evaluated. The collectively evaluated loans include performing loans and unfunded credit commitments. If an exposure does not share risk characteristics with other exposures, the Company generally estimates expected credit losses on an individual basis.

ALLL for Collectively Evaluated Loans

The allowance for collectively evaluated loans consists of a quantitative component that assesses the different risk factors considered in our models and a qualitative component that considers risk factors external to the models. These components are described below.

Quantitative Component — The Company applies quantitative methods to estimate ALLL by considering a variety of factors such as historical loss experience, the current credit quality of the portfolio, and an economic outlook over the life of the loan. The Company incorporates forward-looking information using macroeconomic scenarios which include variables that are considered key drivers of increases and decreases in credit losses. The Company utilizes a probability-weighted, multiple-scenario forecast approach. These scenarios may consist of a base forecast representing management's view of the most likely outcome, combined with downside or upside scenarios reflecting possible worsening or improving economic conditions. The quantitative models incorporate a probability-weighted calculation of these macroeconomic scenarios over a reasonable and supportable forecast period. If the life of the loans extends beyond the reasonable and supportable forecast period, the Company will consider historical experience or long-run macroeconomic trends over the remaining life of the loans to estimate the ALLL.

There were no changes to the reasonable and supportable forecast period, and no change to the reversion to the historical loss experience method for the three months ended March 31, 2026 and 2025.

The following table provides key credit risk characteristics and macroeconomic variables that the Company uses to estimate the expected credit losses by portfolio segment:
Portfolio SegmentRisk CharacteristicsMacroeconomic Variables
C&I
Risk rating, sector, loan origination size, loan age, delinquency status
Unemployment rate, gross domestic product (“GDP”), and U.S. Treasury rates
CRE, Multifamily residential, and Construction and land
Collateral value, property type, geographic location, loan age, delinquency status
Unemployment rate, GDP, and U.S. Treasury rates
SFR and HELOCs
Collateral value, FICO score, geographic location, loan age, delinquency status
House Price Indices, unemployment rate, GDP
Other consumerLoss rate approach
Immaterial — Macroeconomic variables are included in the qualitative estimate

Quantitative Component — ALLL for the Commercial Loan Portfolio

The Company’s C&I lifetime loss rate model estimates the loss rate expected over the life of a loan. This loss rate is applied to the amortized cost basis, excluding accrued interest receivable, to determine expected credit losses. The lifetime loss rate model’s reasonable and supportable period spans eight quarters, thereafter, immediately reverting to the historical average loss rate, expressed through the loan-level lifetime loss rate.

To generate estimates of expected loss at the loan level for CRE, multifamily residential, and construction and land loans, projected probabilities of default (“PDs”) and loss given defaults (“LGDs”) are applied to the estimated exposure at default, considering the term and payment structure of the loan. The forecast of future economic conditions returns to long-run historical economic trends within the reasonable and supportable period. To estimate the life of a loan under both models, the contractual term of the loan is adjusted for estimated prepayments based on historical prepayment experience.
Quantitative Component — ALLL for the Consumer Loan Portfolio

For SFR and HELOC loans, projected PDs and LGDs are applied to the estimated exposure at default, considering the term and payment structure of the loan, to generate estimates of expected loss at the loan level. The forecast of future economic conditions returns to long-run historical economic trends after the reasonable and supportable period. To estimate the life of a loan for the SFR and HELOC loan portfolios, the contractual term of the loan is adjusted for estimated prepayments based on historical prepayment experience. For other consumer loans, the Company uses a loss rate approach.

Qualitative Component — The Company considers the following qualitative factors in the determination of the collectively evaluated allowance if these factors have not already been captured by the quantitative model. Such qualitative factors may include, but are not limited to:

•loan growth trends;
•the volume and severity of past due financial assets, and criticized or adversely classified financial assets;
•the Company’s lending policies and procedures, including changes in lending strategies, underwriting standards, collection, write-off and recovery practices;
•knowledge of a borrower’s operations;
•the quality of the Company’s credit review system;
•the experience, ability and depth of the Company’s management and associates;
•the effect of other external factors such as the regulatory and legal environments, or changes in technology;
•actual and expected changes in international, national, regional, and local economic and business conditions in which the Company operates; and
•risk factors in certain industry sectors not captured by the quantitative models.

The magnitude of the impact of these factors on the Company’s qualitative assessment of the allowance for credit losses changes from period to period according to changes made by management in its assessment of these factors. The extent to which these factors change may depend on whether they are already reflected in quantitative loss estimates during the current period and the extent to which changes in these factors diverge from period to period.

While the Company’s allowance methodologies strive to reflect all relevant credit risk factors, there continues to be uncertainty associated with, but not limited to, potential imprecision in the estimation process due to the inherent time lag of obtaining information and normal variations between expected and actual outcomes. The Company may hold additional qualitative reserves that are designed to provide coverage for losses attributable to such risk.

ALLL for Individually Evaluated Loans

When a loan no longer shares similar risk characteristics with other loans, such as in the case of certain nonaccrual loans, the Company estimates the ALLL on an individual loan basis. The ALLL for individually evaluated loans is measured as the difference between the recorded value of the loans and their fair value. For loans evaluated individually, the Company uses one of three different asset valuation measurement methods: (1) the fair value of collateral less costs to sell; (2) the present value of expected future cash flows; or (3) the loan's observable market price. If an individually evaluated loan is determined to be collateral dependent, the Company applies the fair value of the collateral less costs to sell method. If an individually evaluated loan is determined not to be collateral dependent, the Company uses the present value of future cash flows or the observable market value of the loan.

•Collateral-Dependent Loans — The allowance of a collateral-dependent loan is limited to the difference between the recorded value and fair value of the collateral less cost of disposal or sale. As of March 31, 2026, collateral-dependent commercial and consumer loans totaled $58 million and $17 million, respectively. In comparison, collateral-dependent commercial and consumer loans totaled $69 million and $10 million, respectively, as of December 31, 2025. The Company's collateral-dependent loans were secured by real estate. As of both March 31, 2026 and December 31, 2025, the collateral value of the properties securing the collateral-dependent loans, net of selling costs, exceeded the recorded value of the majority of the loans.
The following tables summarize the activity in the ALLL by portfolio segments for the three months ended March 31, 2026 and 2025:
Three Months Ended March 31, 2026
CommercialConsumer
CREResidential Mortgage
($ in thousands)C&ICREMultifamily Residential
Construction and Land
SFR
HELOCsOther ConsumerTotal
ALLL, beginning of period
$475,613 $221,494 $36,555 $15,468 $53,463 $5,804 $1,376 $809,773 
Provision for (reversal of) credit losses on loans(a)17,892 11,160 2,880 2,593 3,519 92 (262)37,874 
Gross charge-offs(18,385)(1,305)— (893)(121)— (75)(20,779)
Gross recoveries7,918 453 11 2 22 3 251 8,660 
Total net (charge-offs) recoveries
(10,467)(852)11 (891)(99)3 176 (12,119)
Foreign currency translation adjustment346 — — — — — — 346 
ALLL, end of period
$483,384 $231,802 $39,446 $17,170 $56,883 $5,899 $1,290 $835,874 
Three Months Ended March 31, 2025
CommercialConsumer
CREResidential Mortgage
($ in thousands)C&ICREMultifamily ResidentialConstruction and Land
SFR
HELOCsOther ConsumerTotal
ALLL, beginning of period
$384,319 $218,677 $32,117 $17,497 $44,816 $3,132 $1,494 $702,052 
Provision for (reversal of) credit losses on loans(a)36,370 8,105 201 (305)2,072 1,739 (120)48,062 
Gross charge-offs(988)(13,937)(4)(1,996)(9)— (49)(16,983)
Gross recoveries1,564 54 10 3 50 8 13 1,702 
Total net recoveries (charge-offs) 576 (13,883)6 (1,993)41 8 (36)(15,281)
Foreign currency translation adjustment23 — — — — — — 23 
ALLL, end of period
$421,288 $212,899 $32,324 $15,199 $46,929 $4,879 $1,338 $734,856 

In addition to the ALLL, the Company maintains an allowance for unfunded credit commitments. The Company has three general areas for which it provides the allowance for unfunded credit commitments: (1) recourse obligations for loans sold, (2) letters of credit, and (3) unfunded lending commitments. The allowance for unfunded credit commitments is maintained at a level that management believes to be sufficient to absorb estimated expected credit losses related to unfunded credit facilities. See Note 9 — Commitments and Contingencies to the Consolidated Financial Statements in this Form 10-Q for additional information related to unfunded credit commitments. The following table summarizes the activity in the allowance for unfunded credit commitments for the three months ended March 31, 2026 and 2025:
Three Months Ended March 31,
($ in thousands)20262025
Unfunded credit facilities
Allowance for unfunded credit commitments, beginning of period$48,690 $39,526 
(Reversal of) provision for credit losses on unfunded credit commitments
(b)(1,682)938 
Foreign currency translation adjustments(3)— 
Allowance for unfunded credit commitments, end of period$47,005 $40,464 
Provision for credit losses on loans, leases and unfunded credit commitments
(a) + (b)$36,192 $49,000 
The allowance for credit losses on loans, leases and unfunded credit commitments was $883 million as of March 31, 2026, an increase of $25 million, compared with $858 million as of December 31, 2025. The increase in the allowance for credit losses was primarily driven by the Company’s net loan growth, qualitative risk assessment, and an economic outlook that reflected continued caution regarding inflation, the high-interest rate environment, and rising oil prices as a result of the Middle East conflict.

The Company considers multiple economic scenarios to develop the estimate of the ALLL. The scenarios may consist of a baseline forecast representing management's view of the most likely outcome, and downside or upside scenarios that reflect possible worsening or improving economic conditions. As of March 31, 2026, the Company assigned the same weighting to each of its upside, downside and baseline scenarios as compared with December 31, 2025. Compared with the December 2025 forecast, the March 2026 baseline forecast for GDP growth showed improvement in the near term and deterioration starting the fourth quarter of 2026. Unemployment rates have also decreased slightly in the current forecast due to lower forecasted labor force growth. The downside scenario assumed the economy falls into recession in the second quarter of 2026 as a result of rising oil prices, inflation, tariffs, deportations, and still-elevated interest rates. The upside scenario assumed a more optimistic economic outlook, including faster resolutions to global conflicts, stronger growth, stable financial markets, and full employment starting in the second quarter of 2026.
Loan Transfers, Sales and Purchases

The Company’s primary business focus is on directly originated loans. The Company also purchases loans from and participates in loan financing with other banks. In the normal course of business, the Company also provides other financial institutions with the ability to participate in commercial loans that it originates, by selling loans to such institutions. Purchased loans may be transferred from held-for-investment to held-for-sale, and write-downs to ALLL are recorded, when appropriate. The following tables provide information on the carrying value of loans transferred, sold and purchased, during the three months ended March 31, 2026 and 2025:
Three Months Ended March 31, 2026
CommercialConsumer
CREResidential Mortgage
($ in thousands)C&IMultifamily Residential
SFR
Total
Loans transferred from held-for-investment to held-for-sale (1)
$101,777 $9,959 $5,345 $117,081 
Sales (2)(3)
$98,280 $9,959 $363 $108,602 
Purchases$109,892 
(4)
$— $140,511 $250,403 
Three Months Ended March 31, 2025
CommercialConsumer
CREResidential Mortgage
($ in thousands)C&ICRE
Construction and Land
SFR
Total
Loans transferred from held-for-investment to held-for-sale (1)
$6,356 $20,338 $9,500 $— $36,194 
Sales (2)(3)
$6,356 $20,338 $11,316 $— $38,010 
Purchases$136,943 
(4)
$— $— $87,364 $224,307 
(1)Includes write-downs of $2 million to the allowance for loan losses related to loans transferred from held-for-investment to held-for-sale for each of the three months ended March 31, 2026 and 2025.
(2)Includes originated loans sold of $69 million and $34 million for the three months ended March 31, 2026 and 2025, respectively. Originated loans sold were primarily comprised of C&I loans for the three months ended March 31, 2026, and CRE and construction loans for the three months ended March 31, 2025.
(3)Includes $39 million and $4 million of purchased loans sold in the secondary market for the three months ended March 31, 2026 and 2025, respectively.
(4)C&I loan purchases were comprised of syndicated C&I term loans.