Loans Held For Sale

6 Months Ended

Jun. 30, 2026

3. LOANS HELD FOR SALE

The Company purchases and originates residential mortgage loans that are held for sale or securitization primarily through its AmeriHome mortgage banking business channel.

The following is a summary of loans HFS by type:


	June 30, 2026		December 31, 2025
	(in millions)
Government-insured or guaranteed:
EBO (1)	$	885	$	571
Non-EBO	1,155		986
Total government-insured or guaranteed	2,040		1,557
Agency-conforming	2,144		1,707
Non-agency	101		167
Small Business Administration	62		67









Total loans HFS	$	4,347	$	3,498

(1) EBO loans are delinquent FHA, VA, or USDA loans purchased from GNMA pools under the terms of the GNMA MBS program that can be repooled when loans are brought current either through the borrower's reperformance or through completion of a loan modification.

The following is a summary of the net gain on loan purchase, origination, and sale activities on residential mortgage loans to be sold or securitized:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(in millions)
Mortgage servicing rights capitalized upon sale of loans	$	294.1	$	284.4	$	588.8	$	544.8
Net proceeds from sale of loans (1)	(312.5)		(262.8)		(580.3)		(477.7)
Provision for and change in estimate of liability for losses under representations and warranties, net	0.6		0.6		1.7		1.1
Change in fair value of loans HFS and trading securities	50.7		5.9		56.3		33.1

Change in fair value of derivatives:
Unrealized (loss) gain on derivatives	(59.4)		(13.2)		3.7		(73.2)
Realized gain on derivatives	62.0		8.7		22.1		31.7
Total change in fair value of derivatives	2.6		(4.5)		25.8		(41.5)
Net gain on residential mortgage loans HFS	$	35.5	$	23.6	$	92.3	$	59.8
Loan acquisition and origination fees	17.9		15.8		33.8		29.1
Net gain on mortgage loan origination and sale activities	$	53.4	$	39.4	$	126.1	$	88.9

(1) Represents the difference between cash proceeds received upon settlement and loan basis.

4. LOANS, LEASES AND ALLOWANCE FOR CREDIT LOSSES

The composition of the Company's HFI loan portfolio is as follows:


	June 30, 2026		December 31, 2025
	(in millions)
Mortgage finance	$	7,405	$	7,271
Municipal & nonprofit	1,716		1,648
Tech & innovation	4,488		4,128
Equity fund resources	1,457		1,233
Other commercial and industrial	14,951		13,789
CRE - owner occupied	1,469		1,533
Hotel franchise finance	4,582		4,185
Other CRE - non-owner occupied	5,969		6,455
Residential	13,909		13,403
Residential - EBO	752		828
Construction and land development	4,072		4,043
Other	179		161
Total loans HFI	60,949		58,677
Allowance for credit losses	(487)		(461)
Total loans HFI, net of allowance	$	60,462	$	58,216

Loans classified as HFI are stated at the amount of unpaid principal, adjusted for net deferred fees and costs, premiums and discounts on acquired and purchased loans, and an ACL. Net deferred fees of $127 million and $120 million reduced the carrying value of loans as of June 30, 2026 and December 31, 2025, respectively. Net unamortized purchase premiums on acquired and purchased loans of $200 million and $186 million increased the carrying value of loans as of June 30, 2026 and December 31, 2025, respectively.

Nonaccrual and Past Due Loans

Loans are placed on nonaccrual status when management determines full repayment of principal and collection of interest according to contractual terms is no longer likely, generally when the loan becomes 90 days or more past due.

The following tables present nonperforming loan balances by loan portfolio segment:


	June 30, 2026
	Nonaccrual with No Allowance for Credit Loss		Nonaccrual with an Allowance for Credit Loss		Total Nonaccrual		Loans Past Due 90 Days or More and Still Accruing
	(in millions)


Tech & innovation	$	6	7		$	13	$	1
Equity fund resources	—		1		1		—
Other commercial and industrial	123		19		142		—
CRE - owner occupied	1		—		1		—

Other CRE - non-owner occupied	215		64		279		—
Residential	—		14		14		54
Residential - EBO	—		—		—		248
Construction and land development	108		1		109		—
Other	3		—		3		—
Total	$	456	$	106	$	562	$	303

Loans contractually delinquent by 90 days or more and still accruing totaled $303 million at June 30, 2026 and consisted primarily of government guaranteed EBO and other residential loans.


	December 31, 2025
	Nonaccrual with No Allowance for Credit Loss		Nonaccrual with an Allowance for Credit Loss		Total Nonaccrual		Loans Past Due 90 Days or More and Still Accruing
	(in millions)

Municipal & nonprofit	$	—	$	4	$	4	$	3
Tech & innovation	12		8		20		3
Equity fund resources	—		1		1		—
Other commercial and industrial	71		49		120		—
CRE - owner occupied	3		—		3		—

Other CRE - non-owner occupied	188		40		228		—
Residential	—		12		12		51
Residential - EBO	—		—		—		290
Construction and land development	109		—		109		9
Other	2		1		3		—
Total	$	385	$	115	$	500	$	356

Loans contractually delinquent by 90 days or more and still accruing totaled $356 million at December 31, 2025 and consisted primarily of government guaranteed EBO and other residential loans.

The reduction in interest income associated with loans on nonaccrual status was approximately $10.5 million and $8.0 million for the three months ended June 30, 2026 and 2025, respectively, and $19.7 million and $16.0 million for the six months ended June 30, 2026 and 2025, respectively.

Additionally, the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process totaled $102 million and $107 million at June 30, 2026 and December 31, 2025, respectively.

The following tables present an aging analysis of past due loans by loan portfolio segment:


	June 30, 2026
	Current		30-59 Days Past Due		60-89 Days Past Due		Over 90 days Past Due		Total Past Due		Total Nonaccrual		Total
	(in millions)
Mortgage finance	$	7,405	$	—	$	—	$	—	$	—	$	—	$	7,405
Municipal & nonprofit	1,716		—		—		—		—		—		1,716
Tech & innovation	4,471		1		2		1		4		13		4,488
Equity fund resources	1,456		—		—		—		—		1		1,457
Other commercial and industrial	14,805		3		1		—		4		142		14,951
CRE - owner occupied	1,467		—		1		—		1		1		1,469
Hotel franchise finance	4,582		—		—		—		—		—		4,582
Other CRE - non-owner occupied	5,683		6		1		—		7		279		5,969
Residential	13,767		53		21		54		128		14		13,909
Residential - EBO	402		71		31		248		350		—		752
Construction and land development	3,933		30		—		—		30		109		4,072
Other	173		2		1		—		3		3		179
Total loans	$	59,860	$	166	$	58	$	303	$	527	$	562	$	60,949


	December 31, 2025
	Current		30-59 Days Past Due		60-89 Days Past Due		Over 90 days Past Due		Total Past Due		Total Nonaccrual		Total
	(in millions)
Mortgage finance	$	7,271	$	—	$	—	$	—	$	—	$	—	$	7,271
Municipal & nonprofit	1,641		—		—		3		3		4		1,648
Tech & innovation	4,102		3		—		3		6		20		4,128
Equity fund resources	1,232		—		—		—		—		1		1,233
Other commercial and industrial	13,654		12		3		—		15		120		13,789
CRE - owner occupied	1,530		—		—		—		—		3		1,533
Hotel franchise finance	4,185		—		—		—		—		—		4,185
Other CRE - non-owner occupied	6,226		1		—		—		1		228		6,455
Residential	13,259		55		26		51		132		12		13,403
Residential - EBO	393		94		51		290		435		—		828
Construction and land development	3,920		5		—		9		14		109		4,043
Other	155		2		1		—		3		3		161
Total loans	$	57,568	$	172	$	81	$	356	$	609	$	500	$	58,677

Credit Quality Indicators

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually to classify the loans by credit risk. The following tables present risk ratings by class of financing receivable and origination year. The origination year is the year of origination or renewal.


	Term Loan Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Total
As of June 30, 2026	2026		2025		2024		2023		2022		Prior
	(in millions)
Mortgage finance
Pass	$	31	$	11	$	29	$	466	$	299	$	209	$	6,360	$	7,405
Special mention	—		—		—		—		—		—		—		—
Classified	—		—		—		—		—		—		—		—
Total	$	31	$	11	$	29	$	466	$	299	$	209	$	6,360	$	7,405


Municipal & nonprofit
Pass	$	77	$	236	$	219	$	62	$	103	$	984	$	—	$	1,681
Special mention	—		—		—		—		—		31		—		31
Classified	—		—		—		—		—		4		—		4
Total	$	77	$	236	$	219	$	62	$	103	$	1,019	$	—	$	1,716


Tech & innovation
Pass	$	980	$	1,225	$	730	$	198	$	65	$	60	$	1,102	$	4,360
Special mention	2		30		23		—		—		—		13		68
Classified	—		7		5		10		6		—		32		60
Total	$	982	$	1,262	$	758	$	208	$	71	$	60	$	1,147	$	4,488


Equity fund resources
Pass	$	77	$	103	$	1	$	—	$	—	$	1	$	1,274	$	1,456
Special mention	—		—		—		—		—		—		—		—
Classified	—		—		1		—		—		—		—		1
Total	$	77	$	103	$	2	$	—	$	—	$	1	$	1,274	$	1,457


Other commercial and industrial
Pass	$	1,163	$	2,132	$	992	$	216	$	212	$	214	$	9,581	$	14,510
Special mention	1		1		—		4		27		—		43		76
Classified	128		5		141		58		8		3		22		365
Total	$	1,292	$	2,138	$	1,133	$	278	$	247	$	217	$	9,646	$	14,951


CRE - owner occupied
Pass	$	173	$	305	$	153	$	99	$	191	$	485	$	39	$	1,445
Special mention	—		1		—		—		4		3		—		8
Classified	—		1		—		—		9		6		—		16
Total	$	173	$	307	$	153	$	99	$	204	$	494	$	39	$	1,469


Hotel franchise finance
Pass	$	728	$	1,463	$	795	$	431	$	632	$	360	$	98	$	4,507
Special mention	—		—		—		—		—		—		31		31
Classified	—		—		—		—		44		—		—		44
Total	$	728	$	1,463	$	795	$	431	$	676	$	360	$	129	$	4,582


Other CRE - non-owner occupied
Pass	$	776	$	1,274	$	659	$	784	$	1,191	$	630	$	245	$	5,559
Special mention	—		10		13		34		—		1		—		58
Classified	13		16		4		116		203		—		—		352
Total	$	789	$	1,300	$	676	$	934	$	1,394	$	631	$	245	$	5,969


	Term Loan Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Total
As of June 30, 2026	2026		2025		2024		2023		2022		Prior
	(in millions)

Residential
Pass	$	1,086	$	1,244	$	532	$	163	$	2,975	$	7,859	$	32	$	13,891
Special mention	—		—		—		—		—		—		—		—
Classified	—		4		—		5		25		13		1		48
Cumulative fair value hedging adjustment	—		—		—		—		—		—		—		(30)
Total	$	1,086	$	1,248	$	532	$	168	$	3,000	$	7,872	$	33	$	13,909


Residential - EBO
Pass	$	—	$	—	$	24	$	13	$	10	$	705	$	—	$	752
Special mention	—		—		—		—		—		—		—		—
Classified	—		—		—		—		—		—		—		—
Total	$	—	$	—	$	24	$	13	$	10	$	705	$	—	$	752


Construction and land development
Pass	$	352	$	1,042	$	510	$	104	$	131	$	19	$	1,764	$	3,922
Special mention	31		10		—		—		—		—		—		41
Classified	—		—		14		33		61		1		—		109
Total	$	383	$	1,052	$	524	$	137	$	192	$	20	$	1,764	$	4,072


Other
Pass	$	3	$	22	$	48	$	1	$	1	$	73	$	25	$	173
Special mention	—		—		—		—		—		3		—		3
Classified	—		—		—		—		—		3		—		3
Total	$	3	$	22	$	48	$	1	$	1	$	79	$	25	$	179


Total by Risk Category
Pass	$	5,446	$	9,057	$	4,692	$	2,537	$	5,810	$	11,599	$	20,520	$	59,661
Special mention	34		52		36		38		31		38		87		316
Classified	141		33		165		222		356		30		55		1,002
Cumulative fair value hedging adjustment	—		—		—		—		—		—		—		(30)
Total	$	5,621	$	9,142	$	4,893	$	2,797	$	6,197	$	11,667	$	20,662	$	60,949


	Term Loan Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Total
As of December 31, 2025	2025		2024		2023		2022		2021		Prior
	(in millions)








Mortgage finance
Pass	$	11	$	—	$	439	$	281	$	—	$	247	$	6,293	$	7,271
Special mention	—		—		—		—		—		—		—		—
Classified	—		—		—		—		—		—		—		—
Total	$	11	$	—	$	439	$	281	$	—	$	247	$	6,293	$	7,271


Municipal & nonprofit
Pass	$	168	$	221	$	97	$	104	$	136	$	915	$	—	$	1,641
Special mention	—		—		—		—		—		3		—		3
Classified	—		—		—		—		—		4		—		4
Total	$	168	$	221	$	97	$	104	$	136	$	922	$	—	$	1,648


Tech & innovation
Pass	$	1,513	$	918	$	176	$	136	$	31	$	45	$	1,115	$	3,934
Special mention	6		72		45		—		—		—		19		142
Classified	4		18		—		28		—		—		2		52
Total	$	1,523	$	1,008	$	221	$	164	$	31	$	45	$	1,136	$	4,128


Equity fund resources
Pass	$	156	$	4	$	—	$	—	$	1	$	2	$	1,069	$	1,232
Special mention	—		—		—		—		—		—		—		—
Classified	—		1		—		—		—		—		—		1
Total	$	156	$	5	$	—	$	—	$	1	$	2	$	1,069	$	1,233


Other commercial and industrial
Pass	$	2,540	$	1,274	$	355	$	263	$	150	$	184	$	8,631	$	13,397
Special mention	—		—		5		27		—		1		50		83
Classified	88		107		58		30		6		4		16		309
Total	$	2,628	$	1,381	$	418	$	320	$	156	$	189	$	8,697	$	13,789


CRE - owner occupied
Pass	$	318	$	162	$	144	$	292	$	210	$	330	$	40	$	1,496
Special mention	—		1		—		4		—		3		—		8
Classified	—		—		—		7		18		4		—		29
Total	$	318	$	163	$	144	$	303	$	228	$	337	$	40	$	1,533










Hotel franchise finance
Pass	$	1,442	$	844	$	463	$	816	$	186	$	260	$	129	$	4,140
Special mention	—		—		—		—		—		—		—		—
Classified	—		—		—		45		—		—		—		45
Total	$	1,442	$	844	$	463	$	861	$	186	$	260	$	129	$	4,185


Other CRE - non-owner occupied
Pass	$	1,261	$	908	$	1,050	$	1,643	$	406	$	361	$	406	$	6,035
Special mention	4		35		25		—		1		—		—		65
Classified	12		7		111		200		24		1		—		355
Total	$	1,277	$	950	$	1,186	$	1,843	$	431	$	362	$	406	$	6,455


Residential
Pass	$	1,283	$	614	$	185	$	3,119	$	7,033	$	1,084	$	33	$	13,351
Special mention	—		—		—		—		—		1		—		1
Classified	2		1		5		24		9		2		—		43
Cumulative fair value hedging adjustment	—		—		—		—		—		—		—		8
Total	$	1,285	$	615	$	190	$	3,143	$	7,042	$	1,087	$	33	$	13,403


Residential - EBO
Pass	$	1	$	36	$	20	$	13	$	164	$	594	$	—	$	828
Special mention	—		—		—		—		—		—		—		—
Classified	—		—		—		—		—		—		—		—
Total	$	1	$	36	$	20	$	13	$	164	$	594	$	—	$	828


	Term Loan Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Total
As of December 31, 2025	2025		2024		2023		2022		2021		Prior
	(in millions)
Construction and land development
Pass	$	1,059	$	542	$	239	$	230	$	27	$	—	$	1,817	$	3,914
Special mention	10		—		—		10		—		—		—		20
Classified	—		—		32		77		—		—		—		109
Total	$	1,069	$	542	$	271	$	317	$	27	$	—	$	1,817	$	4,043


Other
Pass	$	39	$	3	$	13	$	1	$	1	$	72	$	26	$	155
Special mention	—		—		—		—		—		3		—		3
Classified	—		—		—		—		—		3		—		3
Total	$	39	$	3	$	13	$	1	$	1	$	78	$	26	$	161


Total by Risk Category
Pass	$	9,791	$	5,526	$	3,181	$	6,898	$	8,345	$	4,094	$	19,559	$	57,394
Special mention	20		108		75		41		1		11		69		325
Classified	106		134		206		411		57		18		18		950
Cumulative fair value hedging adjustment	—		—		—		—		—		—		—		8
Total	$	9,917	$	5,768	$	3,462	$	7,350	$	8,403	$	4,123	$	19,646	$	58,677

The following tables present gross charge-offs by class of financing receivable and origination year. The origination year is the year of origination or renewal.




















	For the six months ended June 30, 2026
	Gross Charge-offs by Origination Year												Revolving Loans Amortized Cost Basis		Total
	2026		2025		2024		2023		2022		Prior
	(in millions)
Mortgage finance	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Municipal & nonprofit	—		—		—		—		—		—		—		—
Tech & innovation	0.7		1.0		16.5		—		5.8		0.1		16.9		41.0
Equity fund resources	—		—		—		—		—		—		—		—
Other commercial and industrial	—		0.5		26.7		1.1		0.2		6.0		129.9		164.4
CRE - owner occupied	—		—		—		—		0.1		—		—		0.1
Hotel franchise finance	—		—		—		—		—		—		—		—
Other CRE - non-owner occupied	—		—		2.0		15.0		42.6		0.1		—		59.7
Residential	—		—		—		—		—		—		—		—
Residential - EBO	—		—		—		—		—		—		—		—
Construction and land development	—		—		—		—		0.1		—		—		0.1
Other	—		—		—		—		—		1.3		0.1		1.4
Total	$	0.7	$	1.5	$	45.2	$	16.1	$	48.8	$	7.5	$	146.9	$	266.7




















	For the six months ended June 30, 2025
	Gross Charge-offs by Origination Year												Revolving Loans Amortized Cost Basis		Total
	2025		2024		2023		2022		2021		Prior
	(in millions)
Mortgage finance	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Municipal & nonprofit	—		—		—		—		—		—		—		—
Tech & innovation	1.5		6.5		2.4		11.2		0.2		—		—		21.8
Equity fund resources	—		—		—		—		—		—		—		—
Other commercial and industrial	—		—		0.7		6.1		—		0.3		0.5		7.6
CRE - owner occupied	—		—		—		0.3		—		0.2		—		0.5
Hotel franchise finance	—		—		—		—		—		—		—		—
Other CRE - non-owner occupied	—		—		20.2		10.5		0.5		0.8		—		32.0
Residential	—		—		—		—		—		—		—		—
Residential - EBO	—		—		—		—		—		—		—		—
Construction and land development	—		—		0.3		—		—		—		—		0.3
Other	—		—		—		0.1		—		0.4		0.1		0.6
Total	$	1.5	$	6.5	$	23.6	$	28.2	$	0.7	$	1.7	$	0.6	$	62.8

Restructurings for Borrowers Experiencing Financial Difficulty

The following tables present the amortized cost basis of loans HFI that were modified during the period by loan portfolio segment:


	Amortized Cost Basis at June 30, 2026
	Term Extension		Interest Rate Reduction		Payment Delay		Total		% of Total Class of Financing Receivable
Three Months Ended	(dollars in millions)




Other commercial and industrial	$	—	$	—	$	3	$	3	0.0	%


Other CRE - non-owner occupied	33		—		—		33		0.6




Total	$	33	$	—	$	3	$	36	0.1	%


	Amortized Cost Basis at June 30, 2026
	Term Extension		Interest Rate Reduction		Payment Delay		Total		% of Total Class of Financing Receivable
Six Months Ended	(dollars in millions)




Other commercial and industrial	$	30	$	2	$	4	$	36	0.2	%


Other CRE - non-owner occupied	33		—		—		33		0.6




Total	$	63	$	2	$	4	$	69	0.1	%


	Amortized Cost Basis at June 30, 2025
	Term Extension		Interest Rate Reduction		Payment Delay		Total		% of Total Class of Financing Receivable
Three Months Ended	(dollars in millions)




Other commercial and industrial	$	—	$	—	$	1	$	1	0.0	%







Total	$	—	$	—	$	1	$	1	0.0	%


	Amortized Cost Basis at June 30, 2025
	Term Extension		Interest Rate Reduction		Payment Delay		Total		% of Total Class of Financing Receivable
Six Months Ended	(dollars in millions)


Tech & innovation	$	5	$	1	$	18	$	24	0.7	%

Other commercial and industrial	—		—		84		84		0.8


Other CRE - non-owner occupied	35		—		56		91		1.4


Construction and land development	—		—		39		39		0.9

Total	$	40	$	1	$	197	$	238	0.4	%

The performance of these modified loans is monitored for 12 months following the modification. As of June 30, 2026, modified loans of $164 million were current to 89 days delinquent and $56 million were on nonaccrual status. As of December 31, 2025, modified loans of $114 million were current to 89 days delinquent and $89 million were on nonaccrual status.

In the normal course of business, the Company also modifies EBO loans, which are delinquent FHA, VA, or USDA insured or guaranteed loans repurchased under the terms of the GNMA MBS program and can be repooled or resold when loans are brought current either through the borrower's reperformance or through successful completion of a loss mitigation retention solution. During the three and six months ended June 30, 2026, the Company completed modifications of EBO loans with an amortized cost of $222 million and $307 million, respectively. During the three and six months ended June 30, 2025, the Company completed modifications of EBO loans with an amortized cost of $142 million and $287 million, respectively. These modifications consisted of term extensions, payment delays, and interest rate reductions. Certain of these loans were repooled or resold after modification and are no longer included in the pool of loan modifications being monitored for future performance. As of June 30, 2026, modified EBO loans consisted of $71 million in loans that were current to 89 days delinquent and $43 million in loans 90 days or more delinquent. As of December 31, 2025, modified EBO loans consisted of $27 million in loans that were current to 89 days delinquent and $123 million in loans 90 days or more delinquent.

Collateral-Dependent Loans

The following table presents the amortized cost basis of collateral-dependent loans by loan portfolio segment:


	June 30, 2026						December 31, 2025
	Real Estate Collateral		Other Collateral		Total		Real Estate Collateral		Other Collateral		Total
	(in millions)




Other commercial and industrial	$	—	$	129	$	129	$	—	$	79	$	79
CRE - owner occupied	1		—		1		3		—		3

Other CRE - non-owner occupied	266		—		266		219		—		219


Construction and land development	108		—		108		109		—		109

Total	$	375	$	129	$	504	$	331	$	79	$	410

The Company did not identify any significant changes in the extent to which collateral secures its collateral dependent loans, whether in the form of general deterioration or from other factors during the period ended June 30, 2026.

Allowance for Credit Losses

The ACL consists of the ACL on funded loans HFI and an ACL on unfunded loan commitments. The ACL on AFS and HTM securities is estimated separately from loans, see "Note 2. Investment Securities" of these Notes to Unaudited Consolidated Financial Statements for further discussion. Management considers the level of ACL to be a reasonable and supportable estimate of expected credit losses inherent within the Company's HFI loan portfolio as of June 30, 2026.

The below tables reflect the activity in the ACL on loans HFI by loan portfolio segment, which includes an estimate of future recoveries:


	Three Months Ended June 30, 2026
	Balance, March 31, 2026		Provision for (Recovery of) Credit Losses		Charge-offs		Recoveries		Balance, June 30, 2026
	(in millions)
Mortgage finance	$	5.7	$	0.4	$	—	$	—	$	6.1
Municipal & nonprofit	18.4		(2.7)		—		—		15.7
Tech & innovation	52.9		18.5		20.2		(1.0)		52.2
Equity fund resources	4.0		0.7		—		—		4.7
Other commercial and industrial	174.0		6.6		4.4		(0.5)		176.7
CRE - owner occupied	3.6		(0.4)		0.1		—		3.1
Hotel franchise finance	40.5		2.0		—		—		42.5
Other CRE - non-owner occupied	99.4		57.1		32.0		(1.1)		125.6
Residential	23.7		(0.6)		—		—		23.1
Residential - EBO	—		—		—		—		—
Construction and land development	37.6		(2.1)		0.1		—		35.4
Other	1.3		1.8		0.8		—		2.3
Total	$	461.1	$	81.3	$	57.6	$	(2.6)	$	487.4


	Six Months Ended June 30, 2026
	Balance, December 31, 2025		Provision for (Recovery of) Credit Losses		Charge-offs		Recoveries		Balance, June 30, 2026
	(in millions)
Mortgage finance	$	5.5	$	0.6	$	—	$	—	$	6.1
Municipal & nonprofit	13.0		2.7		—		—		15.7
Tech & innovation	44.8		47.0		41.0		(1.4)		52.2
Equity fund resources	2.6		2.1		—		—		4.7
Other commercial and industrial	184.7		155.7		164.4		(0.7)		176.7
CRE - owner occupied	3.4		(0.2)		0.1		—		3.1
Hotel franchise finance	37.7		4.8		—		—		42.5
Other CRE - non-owner occupied	110.4		73.8		59.7		(1.1)		125.6
Residential	23.7		(0.6)		—		—		23.1
Residential - EBO	—		—		—		—		—
Construction and land development	32.3		3.2		0.1		—		35.4
Other	2.5		1.2		1.4		—		2.3
Total	$	460.6	$	290.3	$	266.7	$	(3.2)	$	487.4


	Three Months Ended June 30, 2025
	Balance, March 31, 2025		Provision for (Recovery of) Credit Losses		Charge-offs		Recoveries		Balance, June 30, 2025
	(in millions)
Mortgage finance	$	4.5	$	(0.1)	$	—	$	—	$	4.4
Municipal & nonprofit	14.8		(3.5)		—		—		11.3
Tech & innovation	44.9		10.4		9.7		(0.1)		45.7
Equity fund resources	1.4		0.8		—		—		2.2
Other commercial and industrial	93.5		23.4		6.7		(0.5)		110.7
CRE - owner occupied	3.7		0.7		0.5		—		3.9
Hotel franchise finance	33.2		2.8		—		—		36.0
Other CRE - non-owner occupied	138.1		(0.7)		17.5		(5.1)		125.0
Residential	19.7		0.2		—		—		19.9
Residential - EBO	—		—		—		—		—
Construction and land development	32.0		1.9		0.3		—		33.6
Other	2.8		(0.2)		0.6		—		2.0
Total	$	388.6	$	35.7	$	35.3	$	(5.7)	$	394.7


	Six Months Ended June 30, 2025
	Balance, December 31, 2024		Provision for (Recovery of) Credit Losses		Charge-offs		Recoveries		Balance, June 30, 2025
	(in millions)
Mortgage finance	$	4.8	$	(0.4)	$	—	$	—	$	4.4
Municipal & nonprofit	14.7		(3.4)		—		—		11.3
Tech & innovation	55.9		10.6		21.8		(1.0)		45.7
Equity fund resources	1.6		0.6		—		—		2.2
Other commercial and industrial	79.4		38.3		7.6		(0.6)		110.7
CRE - owner occupied	3.4		0.9		0.5		(0.1)		3.9
Hotel franchise finance	35.3		0.1		—		(0.6)		36.0
Other CRE - non-owner occupied	134.4		17.5		32.0		(5.1)		125.0
Residential	19.7		0.2		—		—		19.9
Residential - EBO	—		—		—		—		—
Construction and land development	21.3		12.6		0.3		—		33.6
Other	3.3		(0.7)		0.6		—		2.0
Total	$	373.8	$	76.3	$	62.8	$	(7.4)	$	394.7

Accrued interest receivable of $300 million and $287 million at June 30, 2026 and December 31, 2025, respectively, was excluded from the estimate of credit losses. However, accrued interest receivable related to the Company's Residential-EBO loan portfolio segment was included in the estimate of credit losses and had an allowance of $1.2 million as of June 30, 2026 and December 31, 2025. Accrued interest receivable, net of any allowance, is included in Other assets on the Consolidated Balance Sheet.

In addition to the ACL on funded loans HFI, the Company maintains a separate ACL related to off-balance sheet credit exposures, including unfunded loan commitments. This allowance is included in Other liabilities on the Consolidated Balance Sheet.

The below table reflects the activity in the ACL on unfunded loan commitments:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(in millions)
Balance, beginning of period	$	53.3	$	35.1	$	49.6	$	39.5
(Recovery of) provision for credit losses	(1.3)		4.1		2.4		(0.3)
Balance, end of period	$	52.0	$	39.2	$	52.0	$	39.2

The following tables disaggregate the Company's ACL on funded loans HFI and loan balances by measurement methodology:


	June 30, 2026
	Loans						Allowance
	Collectively Evaluated for Credit Loss		Individually Evaluated for Credit Loss		Total		Collectively Evaluated for Credit Loss		Individually Evaluated for Credit Loss		Total
	(in millions)
Mortgage finance	$	7,405	$	—	$	7,405	$	6.1	$	—	$	6.1
Municipal & nonprofit	1,716		—		1,716		15.7		—		15.7
Tech & innovation	4,475		13		4,488		51.8		0.4		52.2
Equity fund resources	1,457		—		1,457		4.7		—		4.7
Other commercial and industrial	14,810		141		14,951		167.0		9.7		176.7
CRE - owner occupied	1,468		1		1,469		3.1		—		3.1
Hotel franchise finance	4,582		—		4,582		42.5		—		42.5
Other CRE - non-owner occupied	5,690		279		5,969		95.7		29.9		125.6
Residential	13,909		—		13,909		23.1		—		23.1
Residential EBO	752		—		752		—		—		—
Construction and land development	3,964		108		4,072		35.4		—		35.4
Other	176		3		179		2.3		—		2.3
Total	$	60,404	$	545	$	60,949	$	447.4	$	40.0	$	487.4


	December 31, 2025
	Loans						Allowance
	Collectively Evaluated for Credit Loss		Individually Evaluated for Credit Loss		Total		Collectively Evaluated for Credit Loss		Individually Evaluated for Credit Loss		Total
	(in millions)
Mortgage finance	$	7,271	$	—	$	7,271	$	5.5	$	—	$	5.5
Municipal & nonprofit	1,643		5		1,648		12.8		0.2		13.0
Tech & innovation	4,108		20		4,128		44.1		0.7		44.8
Equity fund resources	1,233		—		1,233		2.6		—		2.6
Other commercial and industrial	13,671		118		13,789		139.0		45.7		184.7
CRE - owner occupied	1,530		3		1,533		3.4		—		3.4
Hotel franchise finance	4,185		—		4,185		37.7		—		37.7
Other CRE - non-owner occupied	6,227		228		6,455		92.8		17.6		110.4
Residential	13,403		—		13,403		23.7		—		23.7
Residential EBO	828		—		828		—		—		—
Construction and land development	3,934		109		4,043		32.3		—		32.3
Other	159		2		161		2.5		—		2.5
Total	$	58,192	$	485	$	58,677	$	396.4	$	64.2	$	460.6

Loan Purchases and Sales

Loan purchases during the three and six months ended June 30, 2026 totaled $1.5 billion and $2.5 billion, respectively, which primarily consisted of residential and commercial and industrial loan purchases. Loan purchases during the three and six months ended June 30, 2025 totaled $755 million and $1.1 billion, respectively, which primarily consisted of residential and commercial and industrial loan purchases.

In the normal course of business, the Company also repurchases guaranteed or insured loans under the terms of the GNMA MBS program which can be repooled when loans are brought current either through the borrower's reperformance or successful completion of a loss mitigation retention solution. During the three and six months ended June 30, 2026, there were no repurchases of these EBO loans. During the three and six months ended June 30, 2025, the Company repurchased $175 million and $302 million of these EBO loans, respectively. Prior to repurchase, these loans are classified as loans eligible for repurchase, which is included as a component of Other assets on the Consolidated Balance Sheet.

During the three and six months ended June 30, 2026, the Company purchased $51 million and $64 million, respectively, of CRE loans, at par, with more-than-insignificant deterioration in credit quality. As the loans were non-performing and repayment is expected to be realized through the sale of the collateral, the loans were classified as collateral dependent loans. As the fair value of the collateral, net of selling costs, exceeded the loan’s outstanding principal balance as of June 30, 2026, no

allowance for credit losses was recorded. There were no loans purchased with more-than-insignificant deterioration in credit quality during the three and six months ended June 30, 2025.

During the three and six months ended June 30, 2026, the Company sold loans with a carrying value of approximately $50 million and $157 million, respectively. No significant gain, loss, or charge-off was recognized on these loan sales during the three months ended June 30, 2026. For the six months ended June 30, 2026, the Company recognized net charge-offs of $6.1 million related to these sales. During the three and six months ended June 30, 2025, the Company sold loans with a carrying value of approximately $161 million and $379 million, respectively, and recognized a net loss of $0.2 million and $2.8 million, respectively, and net charge-offs of $1.7 million for the three and six months ended June 30, 2025.