v3.26.1
Allowance for Credit Losses (“ACL”) on Loans (Tables)
 3 Months Ended
Mar. 31, 2026
Credit Loss [Abstract]  
Schedule of Allowance for Credit Losses for Off-Balance Sheet Credit Exposures
The table below summarizes the allowance for credit losses for off-balance sheet credit exposures as of, and for, the three months ended March 31, 2026, and March 31, 2025 (in thousands):

Three Months Ended March 31,
20262025
Balance at beginning of period$290 $518 
(Benefit) provision for credit losses(67)103 
Balance at end of period$223 $621 
Schedule of Allowance for Loan Losses and Loans Receivable by Portfolio Segment
The following tables set forth activity in our allowance for credit losses on loans, by loan type, as of, and for the three months ended March 31, 2026, and March 31, 2025 (in thousands):

 
Three Months Ended March 31, 2026
 Real Estate     
 
Commercial (1)
One-to-Four FamilyHome Equity and Lines of CreditConstruction and LandCommercial and IndustrialOtherTotal Loans (excluding PCD)PCDTotal
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)
Recoveries18 — — — 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 FamilyHome Equity and Lines of CreditConstruction and LandCommercial and IndustrialOtherTotal Loans (excluding PCD)PCDTotal
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)
Recoveries15 — — — 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.
The following tables detail the amount of loans receivable held-for-investment, net of deferred loan fees and costs, that are evaluated, individually and collectively, for impairment, and the related portion of the allowance for credit losses that is allocated to each loan portfolio segment, at March 31, 2026, and December 31, 2025 (in thousands):
 March 31, 2026
 Real Estate     
 
Commercial (1)
One-to-Four FamilyHome Equity and Lines of CreditConstruction and LandCommercial and IndustrialOtherTotal Loans (excluding PCD)PCDTotal
Allowance for credit losses:
Ending balance: individually evaluated for impairment$1,093 $— $— $— $489 $— $1,582 $— $1,582 
Ending balance: collectively evaluated for impairment22,612 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 impairment14,654 1,212 15 — 3,268 — 19,149 — 19,149 
Ending balance: collectively evaluated for impairment3,200,983 162,987 195,681 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 FamilyHome Equity and Lines of CreditConstruction and LandCommercial and IndustrialOtherTotal Loans (excluding PCD)PCDTotal
Allowance for credit losses:
Ending balance: individually evaluated for impairment$705 $— $— $— $488 $— $1,193 $— $1,193 
Ending balance: collectively evaluated for impairment23,777 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 impairment7,211 1,234 16 — 3,278 — 11,739 — 11,739 
Ending balance: collectively evaluated for impairment3,265,544 163,866 198,541 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.
(2) Upon adoption of CECL, the Company elected to maintain pools of PCD loans that were previously accounted for under Accounting Standards Codification (“ASC”) 310-30, and will continue to evaluate PCD loans under this guidance.
(3) PPP loans are guaranteed by the SBA and therefore excluded from the allowance for credit losses.