v3.26.1
Loans, Leases and Allowance for Credit Losses
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
Loans, Leases and Allowance for Credit Losses
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, 2026December 31, 2025
(in millions)
Government-insured or guaranteed:
EBO (1)$885 $571 
Non-EBO1,155 986 
Total government-insured or guaranteed2,040 1,557 
Agency-conforming2,144 1,707 
Non-agency101 167 
Small Business Administration62 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,
2026202520262025
(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, net0.6 0.6 1.7 1.1 
Change in fair value of loans HFS and trading securities50.7 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 derivatives62.0 8.7 22.1 31.7 
Total change in fair value of derivatives2.6 (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 fees17.9 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, 2026December 31, 2025
(in millions)
Mortgage finance$7,405 $7,271 
Municipal & nonprofit1,716 1,648 
Tech & innovation4,488 4,128 
Equity fund resources1,457 1,233 
Other commercial and industrial14,951 13,789 
CRE - owner occupied1,469 1,533 
Hotel franchise finance4,582 4,185 
Other CRE - non-owner occupied5,969 6,455 
Residential13,909 13,403 
Residential - EBO752 828 
Construction and land development4,072 4,043 
Other179 161 
Total loans HFI60,949 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 LossNonaccrual with an Allowance for Credit LossTotal NonaccrualLoans 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 industrial123 19 142 — 
CRE - owner occupied1 — 1 — 
Other CRE - non-owner occupied215 64 279 — 
Residential— 14 14 54 
Residential - EBO— — — 248 
Construction and land development108 1 109 — 
Other3 — 3 — 
Total$456 $106 $562 $303 
Loans contractually delinquent by 90 days or more and still accruing totaled $303 million at June 30, 2026 and consisted primarily of government guaranteed EBO and other residential loans.
December 31, 2025
Nonaccrual with No Allowance for Credit LossNonaccrual with an Allowance for Credit LossTotal NonaccrualLoans Past Due 90 Days or More and Still Accruing
(in millions)
Municipal & nonprofit$— $4 $4 $3 
Tech & innovation12 8 20 3 
Equity fund resources— 1 1 — 
Other commercial and industrial71 49 120 — 
CRE - owner occupied3 — 3 — 
Other CRE - non-owner occupied188 40 228 — 
Residential— 12 12 51 
Residential - EBO— — — 290 
Construction and land development109 — 109 9 
Other2 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
Current30-59 Days
Past Due		60-89 Days
Past Due		Over 90 days
Past Due		Total
Past Due		Total NonaccrualTotal
(in millions)
Mortgage finance$7,405 $— $— $— $— $— $7,405 
Municipal & nonprofit1,716 — — — — — 1,716 
Tech & innovation4,471 1 2 1 4 13 4,488 
Equity fund resources1,456 — — — — 1 1,457 
Other commercial and industrial14,805 3 1 — 4 142 14,951 
CRE - owner occupied1,467 — 1 — 1 1 1,469 
Hotel franchise finance4,582 — — — — — 4,582 
Other CRE - non-owner occupied5,683 6 1 — 7 279 5,969 
Residential13,767 53 21 54 128 14 13,909 
Residential - EBO402 71 31 248 350 — 752 
Construction and land development3,933 30 — — 30 109 4,072 
Other173 2 1 — 3 3 179 
Total loans$59,860 $166 $58 $303 $527 $562 $60,949 
December 31, 2025
Current30-59 Days
Past Due		60-89 Days
Past Due		Over 90 days
Past Due		Total
Past Due		Total NonaccrualTotal
(in millions)
Mortgage finance$7,271 $— $— $— $— $— $7,271 
Municipal & nonprofit1,641 — — 3 3 4 1,648 
Tech & innovation4,102 3 — 3 6 20 4,128 
Equity fund resources1,232 — — — — 1 1,233 
Other commercial and industrial13,654 12 3 — 15 120 13,789 
CRE - owner occupied1,530 — — — — 3 1,533 
Hotel franchise finance4,185 — — — — — 4,185 
Other CRE - non-owner occupied6,226 1 — — 1 228 6,455 
Residential13,259 55 26 51 132 12 13,403 
Residential - EBO393 94 51 290 435 — 828 
Construction and land development3,920 5 — 9 14 109 4,043 
Other155 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 YearRevolving Loans Amortized Cost BasisTotal
As of June 30, 202620262025202420232022Prior
(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 mention2 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 mention1 1 — 4 27 — 43 76 
Classified128 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 
Classified13 16 4 116 203 — — 352 
Total$789 $1,300 $676 $934 $1,394 $631 $245 $5,969 
Term Loan Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisTotal
As of June 30, 202620262025202420232022Prior
(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 mention31 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 mention34 52 36 38 31 38 87 316 
Classified141 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 YearRevolving Loans Amortized Cost BasisTotal
As of December 31, 202520252024202320222021Prior
(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 mention6 72 45 — — — 19 142 
Classified4 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 
Classified88 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 mention4 35 25 — 1 — — 65 
Classified12 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 
Classified2 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 YearRevolving Loans Amortized Cost BasisTotal
As of December 31, 202520252024202320222021Prior
(in millions)
Construction and land development
Pass$1,059 $542 $239 $230 $27 $— $1,817 $3,914 
Special mention10 — — 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 mention20 108 75 41 1 11 69 325 
Classified106 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 $58,677 
The following tables present gross charge-offs by class of financing receivable and origination year. The origination year is the year of origination or renewal.
For the six months ended June 30, 2026
Gross Charge-offs by Origination YearRevolving Loans Amortized Cost BasisTotal
20262025202420232022Prior
(in millions)
Mortgage finance$— $— $— $— $— $— $— $— 
Municipal & nonprofit— — — — — — — — 
Tech & innovation0.7 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 $266.7 
For the six months ended June 30, 2025
Gross Charge-offs by Origination YearRevolving Loans Amortized Cost BasisTotal
20252024202320222021Prior
(in millions)
Mortgage finance$— $— $— $— $— $— $— $— 
Municipal & nonprofit— — — — — — — — 
Tech & innovation1.5 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 $62.8 
Restructurings for Borrowers Experiencing Financial Difficulty
The following tables present the amortized cost basis of loans HFI that were modified during the period by loan portfolio segment:
Amortized Cost Basis at June 30, 2026
Term ExtensionInterest Rate ReductionPayment DelayTotal% of Total Class of Financing Receivable
Three Months Ended (dollars in millions)
Other commercial and industrial$— $— $3 $3 0.0 %
Other CRE - non-owner occupied33 — — 33 0.6 
Total$33 $— $3 $36 0.1 %
Amortized Cost Basis at June 30, 2026
Term ExtensionInterest Rate ReductionPayment DelayTotal% 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 occupied33 — — 33 0.6 
Total$63 $2 $4 $69 0.1 %
Amortized Cost Basis at June 30, 2025
Term ExtensionInterest Rate ReductionPayment DelayTotal% of Total Class of Financing Receivable
Three Months Ended (dollars in millions)
Other commercial and industrial$— $— $1 $1 0.0 %
Total$— $— $1 $1 0.0 %
Amortized Cost Basis at June 30, 2025
Term ExtensionInterest Rate ReductionPayment DelayTotal% 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 occupied35 — 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 $123 million in loans 90 days or more delinquent.
Collateral-Dependent Loans
The following table presents the amortized cost basis of collateral-dependent loans by loan portfolio segment:
June 30, 2026December 31, 2025
Real Estate CollateralOther CollateralTotalReal Estate CollateralOther CollateralTotal
(in millions)
Other commercial and industrial$— $129 $129 $— $79 $79 
CRE - owner occupied1 — 1 3 — 3 
Other CRE - non-owner occupied266 — 266 219 — 219 
Construction and land development108 — 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 LossesCharge-offsRecoveriesBalance,
June 30, 2026
(in millions)
Mortgage finance$5.7 $0.4 $— $— $6.1 
Municipal & nonprofit18.4 (2.7)— — 15.7 
Tech & innovation52.9 18.5 20.2 (1.0)52.2 
Equity fund resources4.0 0.7 — — 4.7 
Other commercial and industrial174.0 6.6 4.4 (0.5)176.7 
CRE - owner occupied3.6 (0.4)0.1 — 3.1 
Hotel franchise finance40.5 2.0 — — 42.5 
Other CRE - non-owner occupied99.4 57.1 32.0 (1.1)125.6 
Residential23.7 (0.6)— — 23.1 
Residential - EBO— — — — — 
Construction and land development37.6 (2.1)0.1 — 35.4 
Other1.3 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 LossesCharge-offsRecoveriesBalance,
June 30, 2026
(in millions)
Mortgage finance$5.5 $0.6 $— $— $6.1 
Municipal & nonprofit13.0 2.7 — — 15.7 
Tech & innovation44.8 47.0 41.0 (1.4)52.2 
Equity fund resources2.6 2.1 — — 4.7 
Other commercial and industrial184.7 155.7 164.4 (0.7)176.7 
CRE - owner occupied3.4 (0.2)0.1 — 3.1 
Hotel franchise finance37.7 4.8 — — 42.5 
Other CRE - non-owner occupied110.4 73.8 59.7 (1.1)125.6 
Residential23.7 (0.6)— — 23.1 
Residential - EBO— — — — — 
Construction and land development32.3 3.2 0.1 — 35.4 
Other2.5 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 LossesCharge-offsRecoveriesBalance,
June 30, 2025
(in millions)
Mortgage finance$4.5 $(0.1)$— $— $4.4 
Municipal & nonprofit14.8 (3.5)— — 11.3 
Tech & innovation44.9 10.4 9.7 (0.1)45.7 
Equity fund resources1.4 0.8 — — 2.2 
Other commercial and industrial93.5 23.4 6.7 (0.5)110.7 
CRE - owner occupied3.7 0.7 0.5 — 3.9 
Hotel franchise finance33.2 2.8 — — 36.0 
Other CRE - non-owner occupied138.1 (0.7)17.5 (5.1)125.0 
Residential19.7 0.2 — — 19.9 
Residential - EBO— — — — — 
Construction and land development32.0 1.9 0.3 — 33.6 
Other2.8 (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 LossesCharge-offsRecoveriesBalance,
June 30, 2025
(in millions)
Mortgage finance$4.8 $(0.4)$— $— $4.4 
Municipal & nonprofit14.7 (3.4)— — 11.3 
Tech & innovation55.9 10.6 21.8 (1.0)45.7 
Equity fund resources1.6 0.6 — — 2.2 
Other commercial and industrial79.4 38.3 7.6 (0.6)110.7 
CRE - owner occupied3.4 0.9 0.5 (0.1)3.9 
Hotel franchise finance35.3 0.1 — (0.6)36.0 
Other CRE - non-owner occupied134.4 17.5 32.0 (5.1)125.0 
Residential19.7 0.2 — — 19.9 
Residential - EBO— — — — — 
Construction and land development21.3 12.6 0.3 — 33.6 
Other3.3 (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,
2026202520262025
(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
LoansAllowance
Collectively Evaluated for Credit LossIndividually Evaluated for Credit LossTotalCollectively Evaluated for Credit LossIndividually Evaluated for Credit LossTotal
(in millions)
Mortgage finance$7,405 $— $7,405 $6.1 $— $6.1 
Municipal & nonprofit1,716 — 1,716 15.7 — 15.7 
Tech & innovation4,475 13 4,488 51.8 0.4 52.2 
Equity fund resources1,457 — 1,457 4.7 — 4.7 
Other commercial and industrial14,810 141 14,951 167.0 9.7 176.7 
CRE - owner occupied1,468 1 1,469 3.1 — 3.1 
Hotel franchise finance4,582 — 4,582 42.5 — 42.5 
Other CRE - non-owner occupied5,690 279 5,969 95.7 29.9 125.6 
Residential13,909 — 13,909 23.1 — 23.1 
Residential EBO752 — 752 — — — 
Construction and land development3,964 108 4,072 35.4 — 35.4 
Other176 3 179 2.3 — 2.3 
Total$60,404 $545 $60,949 $447.4 $40.0 $487.4 
December 31, 2025
LoansAllowance
Collectively Evaluated for Credit LossIndividually Evaluated for Credit LossTotalCollectively Evaluated for Credit LossIndividually Evaluated for Credit LossTotal
(in millions)
Mortgage finance$7,271 $— $7,271 $5.5 $— $5.5 
Municipal & nonprofit1,643 5 1,648 12.8 0.2 13.0 
Tech & innovation4,108 20 4,128 44.1 0.7 44.8 
Equity fund resources1,233 — 1,233 2.6 — 2.6 
Other commercial and industrial13,671 118 13,789 139.0 45.7 184.7 
CRE - owner occupied1,530 3 1,533 3.4 — 3.4 
Hotel franchise finance4,185 — 4,185 37.7 — 37.7 
Other CRE - non-owner occupied6,227 228 6,455 92.8 17.6 110.4 
Residential13,403 — 13,403 23.7 — 23.7 
Residential EBO828 — 828 — — — 
Construction and land development3,934 109 4,043 32.3 — 32.3 
Other159 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.