| Allowance for Credit Losses (ACL) |
Note 6 — Allowance for Credit Losses (ACL) The following tables present a disaggregated analysis of activity in the allowance for credit losses for the three and six months ended June 30, 2026 and 2025: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Residential | | Residential | | | | Residential | | Comm Constr. | | | | | | | | CRE Owner- | | Non-Owner- | | | | | | (Dollars in thousands) | | Mortgage Sr. | | Mortgage Jr. | | HELOC | | Construction | | & Dev. | | Consumer | | Multifamily | | Municipal | | Occupied | | Occupied CRE | | C & I | | Total | Three Months Ended June 30, 2026 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Allowance for credit losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Balance at end of period March 31, 2026 | | $ | 58,959 | | $ | 1,384 | | $ | 13,766 | | $ | 8,182 | | $ | 46,541 | | $ | 17,786 | | $ | 55,862 | | $ | 1,917 | | $ | 76,799 | | $ | 188,146 | | $ | 116,540 | | $ | 585,882 | Charge-offs | | | (1,059) | | | — | | | (78) | | | — | | | — | | | (2,171) | | | — | | | — | | | (277) | | | (969) | | | (7,188) | | | (11,742) | Recoveries | | | 79 | | | 4 | | | 75 | | | — | | | 314 | | | 829 | | | 146 | | | — | | | 172 | | | 48 | | | 2,234 | | | 3,901 | Net (charge-offs) recoveries | | | (980) | | | 4 | | | (3) | | | — | | | 314 | | | (1,342) | | | 146 | | | — | | | (105) | | | (921) | | | (4,954) | | | (7,841) | Provision (recovery) (2) | | | 7,650 | | | (255) | | | 322 | | | 1,171 | | | 8,221 | | | 172 | | | 3,316 | | | (98) | | | (4,498) | | | (8,421) | | | 1,043 | | | 8,623 | Balance at end of period June 30, 2026 | | $ | 65,629 | | $ | 1,133 | | $ | 14,085 | | $ | 9,353 | | $ | 55,076 | | $ | 16,616 | | $ | 59,324 | | $ | 1,819 | | $ | 72,196 | | $ | 178,804 | | $ | 112,629 | | $ | 586,664 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2025 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Allowance for credit losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Balance at end of period March 31, 2025 | | $ | 54,326 | | $ | 793 | | $ | 14,868 | | $ | 12,555 | | $ | 78,541 | | $ | 16,304 | | $ | 33,960 | | $ | 1,107 | | $ | 101,656 | | $ | 172,334 | | $ | 137,246 | | $ | 623,690 | Allowance Adjustment – FMV for Independent Merger | | | — | | | — | | | — | | | — | | | — | | | — | | | 16,798 | | | — | | | — | | | — | | | — | | | 16,798 | Independent Day 1 Loan Net Charge-offs PCD (1) | | | — | | | — | | | — | | | — | | | — | | | — | | | (18,065) | | | — | | | 286 | | | 520 | | | — | | | (17,259) | Charge-offs | | | (385) | | | (1) | | | — | | | — | | | (16) | | | (2,184) | | | — | | | — | | | (772) | | | — | | | (8,607) | | | (11,965) | Recoveries | | | 194 | | | 65 | | | 125 | | | — | | | 315 | | | 529 | | | — | | | — | | | 67 | | | 247 | | | 3,176 | | | 4,718 | Net (charge-offs) recoveries | | | (191) | | | 64 | | | 125 | | | — | | | 299 | | | (1,655) | | | (18,065) | | | — | | | (419) | | | 767 | | | (5,431) | | | (24,506) | Provision (recovery) (2) | | | 69 | | | 11 | | | (1,109) | | | (5,405) | | | (2,543) | | | 4,036 | | | 18,395 | | | 1,172 | | | (13,014) | | | (7,908) | | | 11,360 | | | 5,064 | Balance at end of period June 30, 2025 | | $ | 54,204 | | $ | 868 | | $ | 13,884 | | $ | 7,150 | | $ | 76,297 | | $ | 18,685 | | $ | 51,088 | | $ | 2,279 | | $ | 88,223 | | $ | 165,193 | | $ | 143,175 | | $ | 621,046 |
| (1) | The Day 1 loan charge-offs for Independent loans were recorded to conform with the Company’s charge-off policies and practices. |
| (2) | A provision for credit losses for unfunded commitments of $7.3 million in the second quarter of 2026, compared to a provision for credit losses of $2.4 million recorded during the second quarter of 2025 for the allowance for credit losses for unfunded commitments that is not included in the above table. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Residential | | Residential | | | | Residential | | Comm Constr. | | | | | | | | CRE Owner- | | Non-Owner- | | | | | | (Dollars in thousands) | | Mortgage Sr. | | Mortgage Jr. | | HELOC | | Construction | | & Dev. | | Consumer | | Multifamily | | Municipal | | Occupied | | Occupied CRE | | C & I | | Total | Six Months Ended June 30, 2026 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Allowance for credit losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Balance at end of period December 31, 2025 | | $ | 55,947 | | $ | 1,356 | | $ | 14,150 | | $ | 8,732 | | $ | 53,494 | | $ | 19,280 | | $ | 58,678 | | $ | 1,799 | | $ | 73,871 | | $ | 174,797 | | $ | 123,093 | | $ | 585,197 | Charge-offs | | | (2,641) | | | — | | | (199) | | | — | | | (166) | | | (4,304) | | | — | | | — | | | (371) | | | (969) | | | (17,526) | | | (26,176) | Recoveries | | | 128 | | | 97 | | | 429 | | | — | | | 368 | | | 1,715 | | | 162 | | | — | | | 255 | | | 56 | | | 4,612 | | | 7,822 | Net (charge-offs) recoveries | | | (2,513) | | | 97 | | | 230 | | | — | | | 202 | | | (2,589) | | | 162 | | | — | | | (116) | | | (913) | | | (12,914) | | | (18,354) | Provision (recovery) (2) | | | 12,195 | | | (320) | | | (295) | | | 621 | | | 1,380 | | | (75) | | | 484 | | | 20 | | | (1,559) | | | 4,920 | | | 2,450 | | | 19,821 | Balance at end of period June 30, 2026 | | $ | 65,629 | | $ | 1,133 | | $ | 14,085 | | $ | 9,353 | | $ | 55,076 | | $ | 16,616 | | $ | 59,324 | | $ | 1,819 | | $ | 72,196 | | $ | 178,804 | | $ | 112,629 | | $ | 586,664 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2025 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Allowance for credit losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Balance at end of period December 31, 2024 | | $ | 42,687 | | $ | 432 | | $ | 14,845 | | $ | 9,298 | | $ | 65,553 | | $ | 17,484 | | $ | 22,279 | | $ | 1,197 | | $ | 78,753 | | $ | 111,538 | | $ | 101,214 | | $ | 465,280 | Allowance Adjustment - FMV for Independent merger | | | 1,852 | | | — | | | — | | | — | | | 6,448 | | | 114 | | | 20,359 | | | — | | | 8,075 | | | 93,820 | | | 4,773 | | | 135,441 | Initial Allowance for Non-PCD loans acquired during period | | | 8,910 | | | 85 | | | 91 | | | 4,700 | | | 11,751 | | | 254 | | | 3,805 | | | 1,947 | | | 3,186 | | | 31,557 | | | 13,685 | | | 79,971 | Independent Day 1 Loan Net Charge-offs PCD (1) | | | (61) | | | — | | | — | | | — | | | — | | | (2,323) | | | (18,065) | | | — | | | (1,016) | | | (13,036) | | | (22,187) | | | (56,688) | Charge-offs | | | (892) | | | (14) | | | (229) | | | — | | | (16) | | | (3,989) | | | — | | | — | | | (976) | | | — | | | (13,271) | | | (19,387) | Recoveries | | | 394 | | | 89 | | | 505 | | | — | | | 413 | | | 1,359 | | | — | | | — | | | 117 | | | 343 | | | 4,480 | | | 7,700 | Net recoveries (charge-offs) | | | (559) | | | 75 | | | 276 | | | — | | | 397 | | | (4,953) | | | (18,065) | | | — | | | (1,875) | | | (12,693) | | | (30,978) | | | (68,375) | Provision (recovery) (2) | | | 1,314 | | | 276 | | | (1,328) | | | (6,848) | | | (7,852) | | | 5,786 | | | 22,710 | | | (865) | | | 84 | | | (59,029) | | | 54,481 | | | 8,729 | Balance at end of period June 30, 2025 | | $ | 54,204 | | $ | 868 | | $ | 13,884 | | $ | 7,150 | | $ | 76,297 | | $ | 18,685 | | $ | 51,088 | | $ | 2,279 | | $ | 88,223 | | $ | 165,193 | | $ | 143,175 | | $ | 621,046 |
| (1) | The Day 1 loan charge-offs for Independent, inclusive of measurement period adjustments, recorded to conform with the Company’s charge-off policies and practices. |
| (2) | A provision for credit losses of $6.9 million was recorded during the first six months of 2026. This compares to a provision for credit losses of $19.4 million during the first six months of 2025, including $12.1 million for the initial provision for credit losses recorded for unfunded commitments acquired from Independent during the first quarter of 2025, that is not included in the above table. |
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