v3.26.1
Loans and Leases Held for Investment and Credit Quality (Tables)
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
Schedule of Age Analysis of Past Due Loans and Leases
The following tables present total loans and leases held for investment and an aging analysis for the Company’s portfolio segments. Loans and leases are considered past due if the required principal and interest payments have not been received as of the date such payments were due.
Current or Less than 30 Days
Past Due 		30-89 Days
Past Due		90 Days or More Past Due Total Past Due Total Carried at Amortized
Cost
Loans Accounted for Under
the Fair Value Option (1)
Total Loans and Leases
June 30, 2026
Commercial & Industrial
Small Business Banking$2,376,838$43,389$118,814$162,203$2,539,041$73,344$2,612,385
Commercial Banking3,095,0402,95143,45346,4043,141,44439,5223,180,966
Total5,471,87846,340162,267208,6075,680,485112,8665,793,351
Construction & Development
Small Business Banking699,3459,2131,53310,746710,091—710,091
Commercial Banking94,593———94,593—94,593
Total793,9389,2131,53310,746804,684—804,684
Commercial Real Estate
Small Business Banking3,535,19632,795114,957147,7523,682,94883,6563,766,604
Commercial Banking1,472,619—31,37331,3731,503,99213,5221,517,514
Total5,007,81532,795146,330179,1255,186,94097,1785,284,118
Commercial Land
Small Business Banking752,7316,3025,44011,742764,47322,044786,517
Total752,7316,3025,44011,742764,47322,044786,517
Total$12,026,362$94,650$315,570$410,220$12,436,582$232,088$12,668,670
Retained Loan Discount and Net Deferred Costs$(37,811)
Loans and Leases, Net$12,630,859
Guaranteed Balance$2,901,218$60,297$239,887$300,184$3,201,402$64,263$3,265,665
% Guaranteed24.1%63.7%76.0%73.2%25.7%27.7%25.8%
Current or Less than 30 Days
Past Due
30-89 Days
Past Due
90 Days or More Past Due Total Past Due Total Carried at Amortized
Cost
Loans Accounted for Under
the Fair Value Option (1)
Total Loans and Leases
December 31, 2025
Commercial & Industrial
Small Business Banking$2,370,184$23,406$127,090$150,496$2,520,680$87,532$2,608,212
Commercial Banking2,833,7248,702111,857120,5592,954,28340,8322,995,115
Total5,203,90832,108238,947271,0555,474,963128,3645,603,327
Construction & Development
Small Business Banking749,117—1,0251,025750,142—750,142
Commercial Banking69,538———69,538—69,538
Total818,655—1,0251,025819,680—819,680
Commercial Real Estate
Small Business Banking3,267,78712,64088,089100,7293,368,51691,8763,460,392
Commercial Banking1,383,6154,61323,25727,8701,411,48515,9121,427,397
Total4,651,40217,253111,346128,5994,780,001107,7884,887,789
Commercial Land
Small Business Banking670,725—3,8403,840674,56524,473699,038
Total670,725—3,8403,840674,56524,473699,038
Total$11,344,690$49,361$355,158$404,519$11,749,209$260,625$12,009,834
Retained Loan Discount and Net Deferred Costs$(36,212)
Loans and Leases, Net$11,973,622
Guaranteed Balance$2,974,552$33,597$301,737$335,334$3,309,886$69,445$3,379,331
% Guaranteed26.2%68.1%85.0%82.9%28.2%26.6%28.1%
(1)
Retained portions of government guaranteed loans sold prior to January 1, 2021 are carried at fair value under FASB ASC Subtopic 825-10, Financial Instruments: Overall. See Note 7. Fair Value of Financial Instruments for additional information.
Schedule of Credit Quality Indicators by Portfolio Class
The following tables present asset quality indicators by portfolio class and origination year. See Note 3. Loans and Leases Held for Investment and Credit Quality in the Company’s 2025 Form 10-K for additional discussion around the asset quality indicators that the Company uses to manage and monitor credit risk.
Term Loans and Leases Amortized Cost Basis by Origination Year
20262025202420232022PriorRevolving Loans
Amortized Cost Basis		Revolving Loans
Converted to Term
Total (1)
June 30, 2026
Small Business Banking
Pass$713,070 $1,699,588 $1,178,331 $847,851 $865,761 $1,317,835 $163,086 $52,170 $6,837,692 
Special Mention295 35,323 73,149 54,192 115,071 102,534 14,475 2,075 397,114 
Substandard385 39,114 84,779 87,160 101,704 129,320 15,610 3,675 461,747 
Total713,750 1,774,025 1,336,259 989,203 1,082,536 1,549,689 193,171 57,920 7,696,553 
Commercial Banking
Pass602,353 1,348,361 793,240 412,435 240,967 196,410 613,792 160,654 4,368,212 
Special Mention5,000 19,279 43,704 24,436 57,481 31,557 54,994 10,916 247,367 
Substandard— 19,207 8,339 — 23,873 51,651 5,841 15,539 124,450 
Total607,353 1,386,847 845,283 436,871 322,321 279,618 674,627 187,109 4,740,029 
Total$1,321,103 $3,160,872 $2,181,542 $1,426,074 $1,404,857 $1,829,307 $867,798 $245,029 $12,436,582 
Year-To-Date Gross Charge-offs
Small Business Banking$88 $3,557 $8,342 $9,924 $4,786 $6,925 $8,616 $537 $42,775 
Commercial Banking— — — — — 156 330 7,277 7,763 
Total$88 $3,557 $8,342 $9,924 $4,786 $7,081 $8,946 $7,814 $50,538 
Term Loans and Leases Amortized Cost Basis by Origination Year
20252024202320222021PriorRevolving Loans
Amortized Cost Basis		Revolving Loans
Converted to Term
Total (1)
December 31, 2025
Small Business Banking
Pass$1,513,435 $1,245,114 $936,083 $1,000,904 $828,468 $738,567 $154,210 $42,701 $6,459,482 
Special Mention17,102 68,453 64,411 93,132 50,885 80,251 8,763 6,721 389,718 
Substandard30,291 63,432 75,658 115,556 73,330 81,077 23,591 1,768 464,703 
Total1,560,828 1,376,999 1,076,152 1,209,592 952,683 899,895 186,564 51,190 7,313,903 
Commercial Banking
Pass1,434,615 763,382 405,425 248,636 150,616 105,386 581,047 210,917 3,900,024 
Special Mention18,187 73,787 79,971 79,401 40,071 17,734 12,627 15,743 337,521 
Substandard9,000 5,419 — 23,919 107,596 30,552 14,562 6,713 197,761 
Total1,461,802 842,588 485,396 351,956 298,283 153,672 608,236 233,373 4,435,306 
Total$3,022,630 $2,219,587 $1,561,548 $1,561,548 $1,250,966 $1,053,567 $794,800 $284,563 $11,749,209 
Year-To-Date Gross Charge-offs
Small Business Banking$3,472 $5,518 $14,763 $12,693 $5,188 $5,453 $4,352 $2,523 $53,962 
Commercial Banking— — — 3,386 9,772 171 337 6,547 20,213 
Total$3,472 $5,518 $14,763 $16,079 $14,960 $5,624 $4,689 $9,070 $74,175 
(1)
Excludes $232.1 million and $260.6 million of loans accounted for under the fair value option as of June 30, 2026 and December 31, 2025, respectively.
The following tables present guaranteed and unguaranteed loan and lease balances by asset quality indicator:
June 30, 2026
Loan and Lease
Balance (1)
Guaranteed BalanceUnguaranteed Balance% Guaranteed
Pass$11,205,904 $2,572,344 $8,633,560 23.0 %
Special Mention644,481 242,751 401,730 37.7 
Substandard586,197 386,307 199,890 65.9 
Total$12,436,582 $3,201,402 $9,235,180 25.7 %
December 31, 2025
Loan and Lease
Balance (1)
Guaranteed BalanceUnguaranteed Balance% Guaranteed
Pass$10,359,506 $2,590,030 $7,769,476 25.0 %
Special Mention727,239 261,506 465,733 36.0 
Substandard662,464 458,350 204,114 69.2 
Total$11,749,209 $3,309,886 $8,439,323 28.2 %
(1)
Excludes $232.1 million and $260.6 million of loans accounted for under the fair value option as of June 30, 2026 and December 31, 2025, respectively.
Schedule of Nonaccrual Loans and Leases
Nonaccrual loans and leases held for investment as of June 30, 2026 and December 31, 2025 are as follows:
June 30, 2026
Loan and Lease
Balance (1)
Guaranteed
Balance		Unguaranteed BalanceUnguaranteed
Balance with No ACL
Commercial & Industrial
Small Business Banking$189,806 $165,415 $24,391 $16,451 
Commercial Banking51,474 33,251 18,223 13,046 
Total241,280 198,666 42,614 29,497 
Construction & Development
Small Business Banking12,284 10,071 2,213 910 
Total12,284 10,071 2,213 910 
Commercial Real Estate
Small Business Banking173,061 122,968 50,093 30,088 
Commercial Banking31,373 7,482 23,891 23,891 
Total204,434 130,450 73,984 53,979 
Commercial Land
Small Business Banking12,757 7,232 5,525 5,290 
Total12,757 7,232 5,525 5,290 
Total$470,755 $346,419 $124,336 $89,676 
December 31, 2025
Loan and Lease Balance (1)
Guaranteed
Balance		Unguaranteed BalanceUnguaranteed
Balance with No ACL
Commercial & Industrial
Small Business Banking$195,342 $169,818 $25,524 $7,438 
Commercial Banking122,847 111,103 11,744 2,142 
Total318,189 280,921 37,268 9,580 
Construction & Development
Small Business Banking13,282 10,620 2,662 1,342 
Total13,282 10,620 2,662 1,342 
Commercial Real Estate
Small Business Banking127,141 91,099 36,042 17,207 
Commercial Banking36,098 11,454 24,644 16,417 
Total163,239 102,553 60,686 33,624 
Commercial Land
Small Business Banking6,447 5,692 755 533 
Total6,447 5,692 755 533 
Total$501,157 $399,786 $101,371 $45,079 
(1)
Excludes loans accounted for under the fair value option. See Note 7. Fair Value of Financial Instruments for additional information.
When a loan or lease is placed on nonaccrual status, any accrued interest is reversed from loan interest income. The following table summarizes the amount of accrued interest reversed during the periods presented:
Three Months Ended June 30,Six Months Ended June 30,
2026 (1)
2025 (1)
2026 (1)
2025 (1)
Commercial & Industrial $1,052 $597 $1,938 $1,041 
Commercial Real Estate885 284 1,277 774 
Commercial Land163 52 183 52 
Construction & Development— — 215 — 
Total$2,100 $933 $3,612 $1,867 
(1)
Excludes loans accounted for under the fair value option. See Note 7. Fair Value of Financial Instruments for additional information.
Schedule of Amortized Cost Basis of Collateral-Dependent Loans and Leases
The following table presents the amortized cost basis of collateral-dependent loans and leases, which are individually evaluated to determine expected credit losses, as of June 30, 2026 and December 31, 2025:
Total Collateral-Dependent LoansUnguaranteed Portion
June 30, 2026Real EstateBusiness AssetsReal EstateBusiness AssetsAllowance for Credit Losses
Commercial & Industrial
Small Business Banking$29,970 $12,854 $4,828 $8,518 $48 
Commercial Banking— 13,142 — 10,348 — 
Total29,970 25,996 4,828 18,866 48 
Commercial Real Estate
Small Business Banking132,952 — 44,013 — 413 
Commercial Banking23,526 4,986 23,526 303 — 
Total156,478 4,986 67,539 303 413 
Commercial Land
Small Business Banking6,806 — 5,093 — — 
Total6,806 — 5,093 — — 
Total$193,254 $30,982 $77,460 $19,169 $461 
Total Collateral-Dependent LoansUnguaranteed Portion
December 31, 2025Real EstateBusiness AssetsReal EstateBusiness AssetsAllowance for Credit Losses
Commercial & Industrial
Small Business Banking$17,477 $4,107 $4,937 $374 $824 
Commercial Banking— 87,319 — 3,744 600 
Total17,477 91,426 4,937 4,118 1,424 
Construction & Development
Small Business Banking277 — 277 — — 
Total277 — 277 — — 
Commercial Real Estate
Small Business Banking85,987 1,990 27,813 690 266 
Commercial Banking20,389 — 15,425 — — 
Total106,376 1,990 43,238 690 266 
Total$124,130 $93,416 $48,452 $4,808 $1,690 
Schedule of Activity in the Allowance for Credit Losses by Portfolio Segment
The following table details activity in the ACL by portfolio segment allowance for the periods presented:
Three Months EndedCommercial
& Industrial 		Construction &
Development 		Commercial
Real Estate 		Commercial
Land 		Total
June 30, 2026
Beginning Balance$139,211 $7,474 $44,543 $2,051 $193,279 
Charge offs(24,827)— (3,289)(438)(28,554)
Recoveries4,069 171 152 — 4,392 
Provision18,915 878 3,610 897 24,300 
Ending Balance$137,368 $8,523 $45,016 $2,510 $193,417 
June 30, 2025
Beginning Balance$149,916 $5,712 $30,295 $4,261 $190,184 
Charge offs(30,853)— (1,916)(178)(32,947)
Recoveries731 — 771 — 1,502 
Provision (Recovery)19,166 324 5,098 (1,096)23,492 
Ending Balance$138,960 $6,036 $34,248 $2,987 $182,231 
Six Months EndedCommercial
& Industrial		Construction &
Development		Commercial
Real Estate		Commercial
Land		Total
June 30, 2026
Beginning Balance$144,188 $7,224 $37,362 $3,490 $192,264 
Charge offs(43,484)(209)(6,407)(438)(50,538)
Recoveries7,040 221 530 — 7,791 
Provision (Recovery)29,624 1,287 13,531 (542)43,900 
Ending Balance$137,368 $8,523 $45,016 $2,510 $193,417 
June 30, 2025
Beginning Balance$129,007 $4,943 $29,501 $4,065 $167,516 
Charge offs(36,840)— (2,852)(178)(39,870)
Recoveries771 — 862 18 1,651 
Provision (Recovery)46,022 1,093 6,737 (918)52,934 
Ending Balance$138,960 $6,036 $34,248 $2,987 $182,231 
Schedule of Loans Modified
The following tables summarize the amortized cost basis of loans that were modified during the three and six months ended June 30, 2026 and June 30, 2025, respectively:
Three Months Ended June 30, 2026Other-Than-Insignificant
Payment Delay		Term ExtensionInterest Rate ReductionCombination - Term Extension & Other-Than-Insignificant Payment Delay
Combination - Term Extension & Interest Rate Reduction		Total Modifications% of Total Class of
Financing Receivable
Small Business Banking$13,056 $6,221 $1,908 $375 $9,000 $30,560 0.40 %
Commercial Banking— — — — 4,361 4,361 0.09 
Total$13,056 $6,221 $1,908 $375 $13,361 $34,921 0.28 %
Six Months Ended June 30, 2026Other-Than-Insignificant
Payment Delay		Term ExtensionInterest Rate ReductionCombination - Term Extension & Other-Than-Insignificant Payment DelayCombination - Term Extension & Interest Rate ReductionTotal Modifications% of Total Class of
Financing Receivable
Small Business Banking$16,634 $15,888 $1,908 $1,840 $9,740 $46,010 0.60 %
Commercial Banking2,951 5,519 13,127 6,300 4,361 32,258 0.68 
Total$19,585 $21,407 $15,035 $8,140 $14,101 $78,268 0.63 %
Three Months Ended June 30, 2025Other-Than-Insignificant
Payment Delay		Term ExtensionCombination - Term Extension & Interest Rate ReductionTotal Modifications% of Total Class of
Financing Receivable
Small Business Banking$— $10,893 $9,820 $20,713 0.16 %
Commercial Banking5,527 — — 5,527 0.21 
Total$5,527 $10,893 $9,820 $26,240 0.37 %
Six Months Ended June 30, 2025Other-Than-Insignificant
Payment Delay		Term ExtensionInterest Rate ReductionCombination - Term Extension, Other-Than-Insignificant Payment Delay & Interest Rate ReductionCombination - Term Extension & Other-Than-Insignificant Payment DelayCombination - Term Extension & Interest Rate ReductionTotal Modifications% of Total Class of
Financing Receivable
Small Business Banking$— $14,448 $9,862 $3,020 $3,009 $10,010 $40,349 0.45 %
Commercial Banking5,527 — — — — — 5,527 0.21 
Total$5,527 $14,448 $9,862 $3,020 $3,009 $10,010 $45,876 0.66 %
The following table presents an aging analysis of loans that were modified within the twelve months ended June 30, 2026 and June 30, 2025, respectively:

June 30, 2026Current30-89 Days
Past Due		90 Days or More Past DueTotal Past Due
Small Business Banking$83,011 $12,475 $1,897 $14,372 
Commercial Banking35,204 2,951 — 2,951 
Total$118,215 $15,426 $1,897 $17,323 

June 30, 2025Current30-89 Days
Past Due		90 Days or More Past DueTotal Past Due
Small Business Banking$40,120 $— $2,243 $2,243 
Commercial Banking22,824 — — — 
Total$62,944 $— $2,243 $2,243 
The following tables summarize the financial impacts of loan modifications made to borrowers experiencing financial difficulty during the periods presented:
Three Months Ended June 30, 2026
Weighted Average
Interest Rate Reduction 		Weighted Average
Term Extension (in Months)
Small Business Banking1.93 %112
Commercial Banking8.07 %9
Six Months Ended June 30, 2026
Weighted Average
Interest Rate Reduction		Weighted Average
Term Extension (in Months)
Small Business Banking1.94 %90
Commercial Banking6.73 %12
Three Months Ended June 30, 2025
Weighted Average
Interest Rate Reduction		Weighted Average
Term Extension (in Months)
Small Business Banking2.48 %54
Six Months Ended June 30, 2025
Weighted Average
Interest Rate Reduction		Weighted Average
Term Extension (in Months)
Small Business Banking4.32 %51
Schedule of Loans Modified and Subsequently Defaulted
The following table presents the loans that were modified during the preceding twelve months and subsequently defaulted during the period.
Three Months Ended June 30, 2026Other-Than-Insignificant Payment DelayTerm ExtensionInterest Rate ReductionTotal
Small Business Banking$2,839 $4,607 $— $7,446 
Total$2,839 $4,607 $— $7,446 
Six Months Ended June 30, 2026Other-Than-Insignificant Payment DelayTerm ExtensionInterest Rate ReductionTotal
Small Business Banking$7,840 $5,658 $— $13,498 
Total$7,840 $5,658 $— $13,498