v3.26.1
Loans and Allowance for Credit Losses
 3 Months Ended
Mar. 31, 2026
Receivables [Abstract]  
Loans and Allowance for Credit Losses Loans and Allowance for Credit Losses
The following table shows a summary of the balances of loans as of the dates indicated (dollars in thousands):
March 31, 2026December 31, 2025
Residential$2,543,441 $2,573,890 
Commercial477 15,521 
MPP3,860,663 3,424,935 
Total loans6,404,581 6,014,346 
Less:
Allowance for credit losses9,700 10,435 
Net deferred loan (cost)/fees(6,616)(7,181)
Net loans$6,401,497 $6,011,092 
The residential portfolio includes $173.9 million and $178.6 million of loans measured at fair value on March 31, 2026 and December 31, 2025, respectively.
Activity in the allowance for credit losses for the three months ended March 31, 2026 is summarized as follows (dollars in thousands):
Three Months Ended March 31, 2026
ResidentialCommercialMPPUnallocatedTotal
Beginning balance$8,999 $61 $1,370 $5 $10,435 
Charge-offs(475)— — — (475)
Recoveries98 111 — — 209 
Provision (benefit)(471)(170)174 (2)(469)
Ending balance$8,151 $2 $1,544 $3 $9,700 
Activity in the allowance for loan losses for the three months ended March 31, 2025 is summarized as follows (dollars in thousands):
Three Months Ended March 31, 2025
ResidentialCommercialMPPUnallocatedTotal
Beginning balance$10,468 $32 $684 $6 $11,190 
Charge-offs(312)— — — (312)
Recoveries48 4 — — 52 
Provision (benefit)1,117 (32)303 (3)1,385 
Ending balance$11,321 $4 $987 $3 $12,315 
Activity in the allowance for unfunded commitments for the three months ended March 31, 2026 and 2025 is summarized as follows (dollars in thousands):
Three Months Ended
March 31,
20262025
Beginning balance$330 $385 
Charge-offs— — 
Recoveries— — 
Provision (benefit)(24)(90)
Ending balance$306 $295 

Nonaccrual Loans
The following table presents the amortized cost basis of loans on nonaccrual status and loans past due over 90 days still accruing in the HFI portfolio, excluding those loans carried at fair value, as of March 31, 2026 (dollars in thousands):
March 31, 2026
Nonaccrual
with No
Allowance		Nonaccrual
with
Allowance		Total
Nonaccrual		Over
90 days
Accruing		Total
Residential:
Construction and land development$3,873 $1,464 $5,337 $142 $5,479 
Home equity lines of credit11,941 1,227 13,168 67 13,235 
Closed end, first liens40,198 7,642 47,840 4,526 52,366 
Closed end, second liens1,707 148 1,855 — 1,855 
Commercial149 — 149 — 149 
Total$57,868 $10,481 $68,349 $4,735 $73,084 

The following table presents the amortized cost basis of loans on nonaccrual status and loans past due over 90 days still accruing in the HFI portfolio, excluding those loans carried at fair value, as of December 31, 2025 (dollars in thousands):
December 31, 2025
Nonaccrual
with No
Allowance		Nonaccrual
with
Allowance		Total
Nonaccrual		Over
90 days
Accruing		Total
Residential:
Construction and land development$4,501 $1,248 $5,749 $1,329 $7,078 
Home equity lines of credit10,905 2,763 13,668 588 14,256 
Closed end, first liens40,381 9,423 49,804 4,422 54,226 
Closed end, second liens1,146 410 1,556 — 1,556 
Commercial154 — 154 — 154 
Total$57,087 $13,844 $70,931 $6,339 $77,270 
The Bank has not recognized any material interest income on nonaccrual loans during the three months ended March 31, 2026 or 2025.
Collateral dependent loans are loans for which the repayment is expected to be provided substantially through the sale of the collateral and the borrower is experiencing financial difficulty. The allowance is calculated on an individual loan basis of the shortfall between the fair value of the loan’s collateral, which is adjusted for selling costs, and the loan’s amortized cost. If the fair value of the collateral exceeds the loan’s amortized cost, no allowance is necessary.

The amortized cost of collateral dependent loans by class as of March 31, 2026 and December 31, 2025 was as follows (dollars in thousands):
March 31, 2026
Collateral Type
Real EstateOtherAllowance
Allocated
Residential:
Construction and land development$3,873 $— $— 
Home equity lines of credit12,411 — 98 
Closed end, first liens40,950 — 98 
Closed end, second liens1,755 — 8 
Commercial148 $— — 
Total$59,137 $— $204 
December 31, 2025
Collateral Type
Real EstateOtherAllowance
Allocated
Residential:
Construction and land development$4,501 $— $— 
Home equity lines of credit12,864 — 130 
Closed end, first liens41,844 — 26 
Closed end, second liens1,105 — 9 
Commercial154 $— — 
Total$60,468 $— $165 

Age Analysis of Loans
The following tables detail the age analysis of loans, excluding those loans carried at fair value, at March 31, 2026 and December 31, 2025 (dollars in thousands):
March 31, 2026
30 - 59 Days
Past Due		60 - 89 Days
Past Due		Greater than
90 Days		Total Past
Due		CurrentTotal
Loans
Residential:
Construction and land development$2,612 $1,405 $3,990 $8,007 $124,063 $132,070 
Home equity lines of credit2,531 2,267 10,308 15,106 795,556 810,662 
Closed end, first liens16,075 9,479 40,021 65,575 1,299,306 1,364,881 
Closed end, second liens1,322 1,160 1,786 4,268 64,324 68,592 
Commercial— 51 148 199 278 477 
MPP— — — — 3,860,663 3,860,663 
Total$22,540 $14,362 $56,253 $93,155 $6,144,190 $6,237,345 
December 31, 2025
30 - 59 Days
Past Due		60 - 89 Days
Past Due		Greater than
90 Days		Total Past
Due		CurrentTotal
Loans
Residential:
Construction and land development$4,540 $2,135 $5,623 $12,298 $135,250 $147,548 
Home equity lines of credit4,187 916 10,944 16,047 769,936 785,983 
Closed end, first liens21,994 7,568 38,751 68,313 1,329,394 1,397,707 
Closed end, second liens1,857 1,090 1,105 4,052 67,203 71,255 
Commercial55 — 153 208 15,313 15,521 
MPP— — — — 3,424,935 3,424,935 
Total$32,633 $11,709 $56,576 $100,918 $5,742,031 $5,842,949 

Modifications to Borrowers Experiencing Financial Difficulty
On occasion, the Company modifies loans to borrowers in financial distress by providing principal forgiveness, term extensions, interest rate reductions, or payment delays. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses. In some cases, the Company provides multiple types of concessions on one loan.
During the three months ended March 31, 2026, there were five closed end, first lien loans totaling $1.7 million that were both experiencing financial difficulty and modified during the period. These loans were a combination of term extensions and interest rate reductions and each were on nonaccrual status at time of modification. During the three months ended March 31, 2025, there were $2.6 million in loans that were both experiencing financial difficulty and modified during the period: eight closed end, first liens, for $2.3 million and one home equity line of credit for $249,000. These loans were a combination of term extensions and interest rate reductions and each were on nonaccrual status at time of modification.
There were $2.9 million of loans that had modifications to borrowers experiencing financial difficulty within the previous twelve months that became 30 days or more past due during the three months ended March 31, 2026. There were no material modifications to borrowers experiencing financial difficulty within the previous twelve months that became 30 days or more past due during the three months ended March 31, 2025.
Credit Quality Indicators
The Company categorized each loan into credit risk categories based on current financial information, overall debt service coverage, comparison against industry averages, collateral coverage, historical payment experience, and current economic trends. Residential real estate is evaluated for credit risk based on performing or non-performing classification. The Company uses the following definitions for credit risk ratings:
Performing
Residential real estate credits not covered by the non-performing definition below.
Non-performing
Residential real estate loans classified as non-performing are generally loans on nonaccrual status.
Pass
Commercial credits not covered by the definitions below are pass credits, which are not considered to be adversely rated.
Special Mention
Loans classified as special mention, or watch credits, have a potential weakness or weaknesses that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.
Substandard
Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution may sustain some loss if the deficiencies are not corrected.
The following table reflects amortized cost basis of loans and year to date charge-offs (excluding those loans carried at fair value) as of March 31, 2026 based on year of origination (dollars in thousands):
20262025202420232022PriorRevolving
Loans
Amortized
Cost Basis		Total
Construction and land development:
Performing$366 $3,640 $4,340 $28,234 $44,359 $45,794 $— $126,733 
Nonperforming— — 174 1,775 2,292 1,096 — 5,337 
Total366 3,640 4,514 30,009 46,651 46,890 — 132,070 
Gross charge-offs— — — 9 20 13 — 42 
Home equity lines of credit:
Performing— — — — — — 797,494 797,494 
Nonperforming— — — — — — 13,168 13,168 
Total— — — — — — 810,662 810,662 
Gross charge-offs— — — 274 13 — — 287 
First liens, closed end loans:
Performing247 7,171 29,282 67,863 975,018 237,460 — 1,317,041 
Nonperforming— 1,171 2,228 8,056 26,469 9,916 — 47,840 
Total247 8,342 31,510 75,919 1,001,487 247,376 — 1,364,881 
Gross charge-offs— — 11 70 51 5 — 137 
Second liens, closed end loans:
Performing89 3,107 3,894 10,978 28,253 20,416 — 66,737 
Nonperforming— — 252 420 315 868 — 1,855 
Total89 3,107 4,146 11,398 28,568 21,284 — 68,592 
Gross charge-offs— — — 9 — — — 9 
Commercial: Risk Rating
Pass— — — — — 277 — 277 
Special mention— — — — — 51 — 51 
Substandard— — — — — 149 — 149 
Total— — — — — 477 477 — 477 
Gross charge-offs— — — — — — — — 
MPP: Risk Rating
Pass— — — — — — 3,860,663 3,860,663 
Special mention— — — — — — — — 
Total— — — — — — 3,860,663 3,860,663 
Gross charge-offs— — — — — — — — 
Grand total$702 $15,089 $40,170 $117,326 $1,076,706 $316,027 $4,671,325 $6,237,345 
Grand total gross charge-offs$— $— $11 $362 $84 $18 $— $475 
There were no revolving loans converted to term loans during the three months ended March 31, 2026.
The following table reflects amortized cost basis of loans and full year charge-offs as of December 31, 2025 (excluding those loans carried at fair value) based on year of origination (dollars in thousands):

20252024202320222021PriorRevolving
Loans
Amortized
Cost Basis		Total
Construction and land development
Performing$3,640 $6,073 $35,304 $46,608 $33,323 $16,851 $— $141,799 
Nonperforming— 176 1,817 2,490 773 493 — 5,749 
Total3,640 6,249 37,121 49,098 34,096 17,344 — 147,548 
Gross charge-offs— — 43 303 30 22 — 398 
Home equity lines of credit:
Performing— — — — — — 772,315 772,315 
Nonperforming— — — — — — 13,668 13,668 
Total— — — — — — 785,983 785,983 
Gross charge-offs— 2 230 416 21 — — 669 
First liens, closed end loans:
Performing10,612 31,083 73,710 990,798 139,513 102,187 — 1,347,903 
Nonperforming155 2,795 6,834 31,277 3,239 5,504 — 49,804 
Total10,767 33,878 80,544 1,022,075 142,752 107,691 — 1,397,707 
Gross charge-offs— 148 220 1,471 74 6 — 1,919 
Second liens, closed end loans:
Performing3,112 4,229 11,767 29,114 7,812 13,665 — 69,699 
Nonperforming— 252 431 315 232 326 — 1,556 
Total3,112 4,481 12,198 29,429 8,044 13,991 — 71,255 
Gross charge-offs— — 113 4 114 — — 231 
Commercial: Risk Rating
Pass— — — — — 312 15,000 15,312 
Special mention— — — — — 55 — 55 
Substandard— — — — — 154 — 154 
Total— — — — — 521 15,000 15,521 
Gross charge-offs— — — — — — — — 
MPP: Risk Rating
Pass— — — — — — 3,424,935 3,424,935 
Special mention— — — — — — — — 
Total— — — — — — 3,424,935 3,424,935 
Gross charge-offs— — — — — — — — 
Grand total$17,519 $44,608 $129,863 $1,100,602 $184,892 $139,547 $4,225,918 $5,842,949 
Grand total gross charge-offs$— $150 $606 $2,194 $239 $28 $— $3,217 
There were no revolving loans converted to term loans during 2025.