Loans and Leases and Allowance for Credit Losses

The following tables detail the changes in the allowance for credit losses by loan and lease classification (in thousands):


	Three Months Ended March 31, 2026
	Commercial		Commercial
	Real Estate		Real Estate		Consumer		Construction		Commercial
	Non-Owner		Owner		Real		and Land		and				Consumer
	Occupied		Occupied		Estate		Development		Industrial		Leases		and Other		Total
Beginning balance	$	8,044	$	8,876	$	8,767	$	4,298	$	8,611	$	2,173	$	137	$	40,906
Charged-off loans and leases		—		—		—		—		(91)		(59)		(79)		(229)
Recoveries of charge-offs		—		2		—		—		36		—		22		60
Provision charged to expense ^{(1) (2)}		320		(762)		145		4,434		(363)		(650)		89		3,213
Ending balance	$	8,364	$	8,116	$	8,912	$	8,732	$	8,193	$	1,464	$	169	$	43,950


	Three Months Ended March 31, 2025
	Commercial		Commercial
	Real Estate		Real Estate		Consumer		Construction		Commercial
	Non-Owner		Owner		Real		and Land		and				Consumer
	Occupied		Occupied		Estate		Development		Industrial		Leases		and Other		Total
Beginning balance	$	6,972	$	8,341	$	8,355	$	4,168	$	8,552	$	919	$	116	$	37,423
Charged-off loans and leases		—		—		—		—		(59)		(190)		(83)		(332)
Recoveries of charge-offs		—		2		—		200		23		—		16		241
Provision charged to expense ⁽³⁾		354		72		333		(214)		112		113		73		843
Ending balance	$	7,326	$	8,415	$	8,688	$	4,154	$	8,628	$	842	$	122	$	38,175

(1)

In the provision charged to expense, there was a provision for unfunded commitment liability in the amount of $926 thousand that is not included in the table above for the three months ended March 31, 2026.

(2)

The increase in the provision charged to expense for construction and land development loans was primarily driven by updates to the allowance methodology, specifically around the quantitative reserve, which resulted in higher modeled loss expectations for this portfolio segment.

(3)

In the provision charged to expense, there was a provision for unfunded commitment liability in the amount of $136 thousand that is not included in the table above for the three months ended March 31, 2025.

Past Due Loans and Leases

The following tables present an aging analysis of our loan and lease portfolio (in thousands):


		March 31, 2026
								90 Days
		30-59 Days			60-89 Days			or More			Total			Loans Not		Total
		Past Due			Past Due			Past Due			Past Due			Past Due		Loans
Commercial real estate:
Non-owner occupied		$	—		$	152		$	—		$	152		$	1,263,303	$	1,263,455
Owner occupied			173			340			270			783			1,032,428		1,033,211
Consumer real estate			504			500			2,150			3,154			848,330		851,484
Construction and land development			56			—			—			56			478,245		478,301
Commercial and industrial			1,592			467			1,412			3,471			816,404		819,875
Leases			717			931			3,220			4,868			49,428		54,296
Consumer and other			89			24			—			113			17,656		17,769
Total		$	3,131		$	2,414		$	7,052		$	12,597		$	4,505,794	$	4,518,391


		December 31, 2025
								90 Days
		30-59 Days			60-89 Days			or More			Total			Loans Not		Total
		Past Due			Past Due			Past Due			Past Due			Past Due		Loans
Commercial real estate:
Non-owner occupied		$	—		$	—		$	189		$	189		$	1,196,569		1,196,758
Owner occupied			1,150			211			270			1,631			1,021,240		1,022,871
Consumer real estate			1,786			1,725			918			4,429			830,197		834,626
Construction and land development			68			—			—			68			419,108		419,176
Commercial and industrial			1,178			674			1,204			3,056			814,539		817,595
Leases			1,889			73			2,156			4,118			51,304		55,422
Consumer and other			117			3			—			120			17,014		17,134
Total		$	6,188		$	2,686		$	4,737		$	13,611		$	4,349,971	$	4,363,582

Summary of amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses

The following table presents the amortized cost basis of collateral-dependent loans, which are individually evaluated to determine expected credit losses (in thousands):


	March 31, 2026
	Real Estate		Other		Total
Commercial real estate:
Non-owner occupied	$	398	$	—	$	398
Owner occupied		3,872		—		3,872
Consumer real estate		2,002		—		2,002
Construction and land development		—		—		—
Commercial and industrial		—		1,982		1,982
Leases		—		529		529
Consumer and other		—		—		—
Total	$	6,272	$	2,511	$	8,783

	December 31, 2025
	Real Estate		Other		Total
Commercial real estate:
Non-owner occupied	$	413	$	—	$	413
Owner occupied		4,129		—		4,129
Consumer real estate		1,075		—		1,075
Construction and land development		—		—		—
Commercial and industrial		—		3,115		3,115
Leases		—		2,409		2,409
Consumer and other		—		—		—
Total	$	5,617	$	5,524	$	11,141