In estimating the quantitative component of the allowance on a collective basis, the Company uses a risk rating migration model which calculates an expected life of loan loss percentage for each loan by generating probability of default and loss given default metrics. These metrics are multiplied by the exposure at the potential default, taking into consideration estimated prepayments, to calculate the quantitative component of the ACL. The metrics are based on the migration of loans from performing to loss by credit risk rating or delinquency categories using historical life-of-loan analysis periods for each loan portfolio pool, and the severity of loss, based on the aggregate net lifetime losses incurred using the Company's own historical loss experience and comparable peer data loss history. The model's expected losses based on loss history are adjusted for qualitative adjustments to address risks that may not be adequately represented in the risk rating migration model. Among other things, these adjustments include and account for differences in: (i) changes in lending policies and procedures; (ii) changes in local, regional, national, and international economic and business conditions and developments that affect the collectability of our portfolio, including the condition of various market segments; (iii) changes in the experience, ability and depth of lending management and other relevant staff; (iv) changes in the quality of our loan review system; (v) the existence and effect of any concentrations of credit, and changes in the level of such concentrations; and (vi) the effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in our existing portfolio.

Management utilizes five different Moody's scenarios so as to incorporate uncertainties related to the economic environment. These scenarios, which range from more benign to more severe economic outlooks, include a “most likely outcome” (the “Baseline” scenario) and four less likely scenarios referred to as the “Upside” and “Downside” scenarios. Each scenario is assigned a weighting with a majority of the weighting placed on the Baseline scenario and lower weights placed on both the Upside and Downside scenarios. The weighting assigned by management is based on the economic outlook and available information at the reporting date. The model projects economic variables under each scenario based on detailed statistical analyses. The Company has identified and selected key variables that most closely correlated to its historical credit performance, which include: Gross domestic product, unemployment, and three collateral indices: the Commercial Property Price Index, the Commercial Property Price Apartment Index and the Case-Shiller Home Price Index.

The Company measures specific reserves for individual loans that do not share common risk characteristics with other loans, consisting of all loans previously modified as TDRs (prior to the adoption of ASU 2022-02) and non-accrual loans with an outstanding balance of $500,000 or greater. Loans individually evaluated for impairment are assessed to determine whether the loan’s carrying value is not in excess of the estimated fair value of the collateral less cost to sell, if the loan is collateral-dependent, or the present value of the expected future cash flows, if the loan is not collateral-dependent. Management performs an evaluation of each individually evaluated loan and generally obtains updated appraisals as part of the evaluation. In addition, management adjusts estimated fair values down to appropriately consider recent market conditions, our willingness to accept a lower sales price to effect a quick sale, and costs to dispose of any supporting collateral. Determining the estimated fair value of underlying collateral (and related costs to sell) can be difficult in illiquid real estate markets and is subject to significant assumptions and estimates. Management employs an independent third-party management firm that specializes in appraisal preparation and review to ascertain the reasonableness of updated appraisals. Projecting the expected cash flows for TDRs (prior to the adoption of ASU 2022-02), which are not collateral-dependent is inherently subjective and requires, among other things, an evaluation of the borrower’s current and projected financial condition. Individually evaluated loans that have no impairment losses are not considered for collective allowances described above. Upon adoption of ASU 2022-02, the Company no longer establishes a specific reserve for loan modifications to borrowers experiencing financial difficulty. Instead, these loan modifications are included in their respective pool and a historical loss rate is applied to the current loan balance to arrive at the quantitative and qualitative baseline portion of the allowance for credit losses. At March 31, 2026, and December 31, 2025, the ACL for loans individually evaluated for impairment was $1.6 million and $1.2 million, respectively.

An ACL for off-balance-sheet exposures represents an estimate of expected credit losses arising from off-balance sheet exposures such as loan commitments, standby letters of credit and unused lines of credit (loans already on the books). Commitments to fund unused lines of credit are agreements to lend additional funds to customers as long as there have been no violations of any of the conditions established in the agreements (original or restructured). Commitments to originate loans generally have a fixed expiration or other termination clauses, which may require payment of a fee. Since some of these loan commitments are expected to expire without being drawn upon, total commitments do not necessarily represent future cash requirements. The reserve for off-balance sheet exposures is determined using the Current Expected Credit Losses (“CECL”) reserve factor in the related funded loan segment, adjusted for an average historical funding rate. The allowance for credit losses for off-balance sheet credit exposures is recorded in other liabilities on the consolidated balance sheets and the corresponding provision is included in other non-interest expense.


	Three Months Ended March 31, 2026
	Real Estate
	Commercial (1)		One-to-Four Family		Home Equity and Lines of Credit		Construction and Land		Commercial and Industrial		Other		Total Loans (excluding PCD)		PCD		Total
Allowance for credit losses:
Beginning balance	$	24,482	$	2,213	$	2,880	$	102	$	5,842	$	4	$	35,523	$	2,621	$	38,144
Charge-offs	—		—		(5)		—		(1,494)		—		(1,499)		—		(1,499)
Recoveries	18		—		—		—		124		—		142		—		142
Provisions (credit)	(795)		(108)		(70)		(3)		1,310		(2)		332		(85)		247
Ending balance	$	23,705	$	2,105	$	2,805	$	99	$	5,782	$	2	$	34,498	$	2,536	$	37,034


	Three Months Ended March 31, 2025
	Real Estate
	Commercial (1)		One-to-Four Family		Home Equity and Lines of Credit		Construction and Land		Commercial and Industrial		Other		Total Loans (excluding PCD)		PCD		Total
Allowance for credit losses:
Beginning balance	$	20,949	$	2,245	$	2,254	$	103	$	6,724	$	4	$	32,279	$	2,904	$	35,183
Charge-offs	—		—		—		—		(3,098)		—		(3,098)		—		(3,098)
Recoveries	15		—		—		—		238		1		254		—		254
Provisions (credit)	561		(31)		(22)		—		2,245		(1)		2,752		(170)		2,582
Ending balance	$	21,525	$	2,214	$	2,232	$	103	$	6,109	$	4	$	32,187	$	2,734	$	34,921

(1) Commercial includes commercial real estate loans collateralized by owner-occupied, non-owner occupied, and multifamily properties.


	March 31, 2026
	Real Estate
	Commercial (1)		One-to-Four Family		Home Equity and Lines of Credit		Construction and Land		Commercial and Industrial		Other		Total Loans (excluding PCD)		PCD		Total
Allowance for credit losses:
Ending balance: individually evaluated for impairment	$	1,093	$	—	$	—	$	—	$	489	$	—	$	1,582	$	—	$	1,582
Ending balance: collectively evaluated for impairment	22,612		2,105		2,805		99		5,293		2		32,916		—		32,916
Ending balance: PCD loans evaluated for impairment (2)	—		—		—		—		—		—		—		2,536		2,536
Loans, net:
Ending balance	$	3,215,637	$	164,199	$	195,696	$	50,163	$	172,988	$	1,030	$	3,799,713	$	8,244	$	3,807,957
Ending balance: individually evaluated for impairment	14,654		1,212		15		—		3,268		—		19,149		—		19,149
Ending balance: collectively evaluated for impairment	3,200,983		162,987		195,681		50,163		169,720		1,030		3,780,564		—		3,780,564
Ending balance: PCD loans evaluated for impairment (2)	—		—		—		—		—		—		—		8,244		8,244


	December 31, 2025
	Real Estate
	Commercial (1)		One-to-Four Family		Home Equity and Lines of Credit		Construction and Land		Commercial and Industrial		Other		Total Loans (excluding PCD)		PCD		Total
Allowance for credit losses:
Ending balance: individually evaluated for impairment	$	705	$	—	$	—	$	—	$	488	$	—	$	1,193	$	—	$	1,193
Ending balance: collectively evaluated for impairment	23,777		2,213		2,880		102		5,354		4		34,330		—		34,330
Ending balance: PCD loans evaluated for impairment (2)	—		—		—		—		—		—		—		2,621		2,621
Loans, net:
Ending balance	$	3,272,755	$	165,100	$	198,557	$	44,522	$	166,167	$	1,409	$	3,848,510	$	8,263	$	3,856,773
Ending balance: individually evaluated for impairment	7,211		1,234		16		—		3,278		—		11,739		—		11,739
Ending balance: collectively evaluated for impairment	3,265,544		163,866		198,541		44,522		162,868		1,409		3,836,750		—		3,836,750
Ending balance: PCD loans evaluated for impairment (2)	—		—		—		—		—		—		—		8,263		8,263
PPP loans not evaluated for impairment (3)	—		—		—		—		21		—		21		—		21

(1) Commercial includes commercial real estate loans collateralized by owner-occupied, non-owner occupied, and multifamily properties.