| Allowance for Credit Losses |
Allowance for Credit Losses (In Thousands) Allowance for Credit Losses on Loans As of June 30, 2026 and December 31, 2025, the Company had accrued interest receivable for loans of $67,986 and $54,395, respectively, which is recorded in the “Other assets” line item on the Consolidated Balance Sheets. The following tables provide a roll-forward of the allowance for credit losses by loan category and nonaccrual loans with no allowance for credit losses for the periods presented: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial and industrial | | Construction and land development | | Real Estate -
1-4 Family
Mortgage | | Commercial real estate - owner occupied | | Commercial real estate - non owner occupied | | Consumer | | Total | | Three Months Ended June 30, 2026 | | | | | | | | | | | | | | | Allowance for credit losses: | | | | | | | | | | | | | | | Beginning balance | $ | 65,814 | | | $ | 36,969 | | | $ | 66,653 | | | $ | 37,441 | | | $ | 84,380 | | | $ | 4,605 | | | $ | 295,862 | | Initial allowance for credit losses on loans acquired during the period | 1,750 | | | — | | | — | | | — | | | — | | | — | | | 1,750 | | | Charge-offs | (2,223) | | | — | | | (402) | | | (227) | | | (176) | | | (319) | | | (3,347) | | | Recoveries | 382 | | | 2 | | | 133 | | | 7 | | | 18 | | | 35 | | | 577 | | | Net (charge-offs) recoveries | (1,841) | | | 2 | | | (269) | | | (220) | | | (158) | | | (284) | | | (2,770) | | | Provision for (recovery of) credit losses on loans | 1,634 | | | 2,914 | | | 453 | | | (1,274) | | | (2,463) | | | (98) | | | 1,166 | | | Ending balance | $ | 67,357 | | | $ | 39,885 | | | $ | 66,837 | | | $ | 35,947 | | | $ | 81,759 | | | $ | 4,223 | | | $ | 296,008 | | | Six Months Ended June 30, 2026 | | | | | | | | | | | | | | | Allowance for credit losses: | | | | | | | | | | | | | | | Beginning balance | $ | 57,831 | | | $ | 31,359 | | | $ | 61,249 | | | $ | 38,961 | | | $ | 99,605 | | | $ | 4,950 | | | $ | 293,955 | | Initial allowance for credit losses on loans acquired during the period | 1,750 | | | — | | | — | | | — | | | — | | | — | | | 1,750 | | | Charge-offs | (3,293) | | | (1) | | | (927) | | | (1,363) | | | (374) | | | (649) | | | (6,607) | | | Recoveries | 532 | | | 2 | | | 159 | | | 683 | | | 81 | | | 63 | | | 1,520 | | | Net (charge-offs) recoveries | (2,761) | | | 1 | | | (768) | | | (680) | | | (293) | | | (586) | | | (5,087) | | | Provision for (recovery of) credit losses on loans | 10,537 | | | 8,525 | | | 6,356 | | | (2,334) | | | (17,553) | | | (141) | | | 5,390 | | | Ending balance | $ | 67,357 | | | $ | 39,885 | | | $ | 66,837 | | | $ | 35,947 | | | $ | 81,759 | | | $ | 4,223 | | | $ | 296,008 | | | | | | | | | | | | | | | | | Nonaccruing loans with no allowance for credit losses | $ | 22,859 | | | $ | 4,032 | | | $ | 2,312 | | | $ | 4,446 | | | $ | 28,062 | | | $ | — | | | $ | 61,711 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial and industrial | | Construction and land development | | Real Estate -
1-4 Family
Mortgage | | Commercial real estate - owner occupied | | Commercial real estate - non owner occupied | | Consumer | | Total | | Three Months Ended June 30, 2025 | | | | | | | | | | | | | | | Allowance for credit losses: | | | | | | | | | | | | | | | Beginning balance | $ | 41,884 | | | $ | 20,845 | | | $ | 48,101 | | | $ | 17,826 | | | $ | 68,781 | | | $ | 6,494 | | | $ | 203,931 | | | Initial impact of purchased credit deteriorated loans acquired during the period | 7,140 | | | 2,185 | | | 203 | | | 4,059 | | | 9,904 | | | 2 | | | 23,493 | | | Charge-offs | (8,217) | | | (105) | | | (319) | | | — | | | (3,944) | | | (394) | | | (12,979) | | | Recoveries | 631 | | | — | | | 37 | | | 56 | | | 60 | | | 141 | | | 925 | | | Net (charge-offs) recoveries | (7,586) | | | (105) | | | (282) | | | 56 | | | (3,884) | | | (253) | | | (12,054) | | | Provision for (recovery of) credit losses on loans | 19,972 | | | 7,369 | | | 13,150 | | | 9,186 | | | 25,866 | | | (143) | | | 75,400 | | | Ending balance | $ | 61,410 | | | $ | 30,294 | | | $ | 61,172 | | | $ | 31,127 | | | $ | 100,667 | | | $ | 6,100 | | | $ | 290,770 | | | Six Months Ended June 30, 2025 | | | | | | | | | | | | | | | Allowance for credit losses: | | | | | | | | | | | | | | | Beginning balance | $ | 41,864 | | | $ | 19,200 | | | $ | 45,498 | | | $ | 16,993 | | | $ | 71,664 | | | $ | 6,537 | | | $ | 201,756 | | | Initial impact of purchased credit deteriorated loans acquired during the period | 7,140 | | | 2,185 | | | 203 | | | 4,059 | | | 9,904 | | | 2 | | | 23,493 | | | Charge-offs | (8,310) | | | (106) | | | (628) | | | — | | | (4,405) | | | (659) | | | (14,108) | | | Recoveries | 1,597 | | | 1 | | | 70 | | | 58 | | | 64 | | | 389 | | | 2,179 | | | Net (charge-offs) recoveries | (6,713) | | | (105) | | | (558) | | | 58 | | | (4,341) | | | (270) | | | (11,929) | | | Provision for (recovery of) credit losses on loans | 19,119 | | | 9,014 | | | 16,029 | | | 10,017 | | | 23,440 | | | (169) | | | 77,450 | | | Ending balance | $ | 61,410 | | | $ | 30,294 | | | $ | 61,172 | | | $ | 31,127 | | | $ | 100,667 | | | $ | 6,100 | | | $ | 290,770 | | | | | | | | | | | | | | | | | Nonaccruing loans with no allowance for credit losses | $ | 899 | | | $ | 2,331 | | | $ | 4,275 | | | $ | 4,700 | | | $ | 9,663 | | | $ | — | | | $ | 21,868 | |
The Company recorded a provision for credit losses on loans of $1,166 and an initial provision of $1,750 for credit losses on loans associated with the portfolio acquisition during the second quarter of 2026, as compared to a provision for credit losses on loans of $75,400 recorded in the second quarter of 2025, which included the Day 1 provision associated with the merger with The First. The allowance for credit losses in the second quarter of 2026 remained adequate and relatively stable as compared to the prior quarter’s ACL balance. The increase attributable to loan growth, including both acquisition-related and organic growth, as well as changes in qualitative factors, was moderated by improvements in asset credit quality and the resolution of non-performing loans (individually reviewed loans). The Company’s allowance for credit losses model considers current economic conditions, economic projections, primarily the national unemployment rate and GDP, over a reasonable and supportable period of two years, historical loss data, and environmental factors. The allowance for credit losses under CECL is calculated utilizing the probability of default/loss given default approach for most commercial mortgage related pools, while the average historical life-of-loan loss rate cohort approach is used for the remaining pools. Collateral Dependent Loans The following tables present collateral dependent loans by loan portfolio segment and by type of collateral along with the related allowance for credit losses: | | | | | | | | | | | | | | | | | | | Collateral Type | | | | | June 30, 2026 | Real Estate | Other | Total | | Allowance for Credit Losses | | Commercial and industrial | $ | — | | $ | 46,939 | | $ | 46,939 | | | $ | 9,302 | | | Construction and land development | | | | | | | Residential | 1,937 | | — | | 1,937 | | | — | | | Other | 2,095 | | — | | 2,095 | | | — | | | Total construction and land development | 4,032 | | — | | 4,032 | | | — | | | Real estate - 1-4 family mortgage | | | | | | | First lien | 2,312 | | — | | 2,312 | | | — | | | Junior lien | — | | — | | — | | | — | | | Home equity | 500 | | — | | 500 | | | — | | | Total real estate – 1-4 family mortgage | 2,812 | | — | | 2,812 | | | — | | | Commercial real estate - owner occupied | 12,665 | | — | | 12,665 | | | 3,116 | | | Commercial real estate - non-owner occupied | | | | | | | Multi family | — | | — | | — | | | — | | | Other | 42,411 | | — | | 42,411 | | | 5,745 | | | Total commercial real estate - non-owner occupied | 42,411 | | — | | 42,411 | | | 5,745 | | | Consumer | — | | — | | — | | | — | | | Loans, net of unearned income | $ | 61,920 | | $ | 46,939 | | $ | 108,859 | | | $ | 18,163 | |
| | | | | | | | | | | | | | | | | | | Collateral Type | | | | | December 31, 2025 | Real Estate | Other | Total | | Allowance for Credit Losses | | Commercial and industrial | $ | — | | $ | 46,860 | | $ | 46,860 | | | $ | 4,502 | | | Construction and land development | | | | | | | Residential | 2,033 | | — | | 2,033 | | | — | | | Other | 10,575 | | — | | 10,575 | | | 1,887 | | | Total construction and land development | 12,608 | | — | | 12,608 | | | 1,887 | | | Real estate - 1-4 family mortgage | | | | | | | First lien | 3,263 | | — | | 3,263 | | | 116 | | | Junior lien | — | | — | | — | | | — | | | Home equity | 500 | | — | | 500 | | | — | | | Total real estate – 1-4 family mortgage | 3,763 | | — | | 3,763 | | | 116 | | | Commercial real estate - owner occupied | 21,165 | | — | | 21,165 | | | 3,661 | | | Commercial real estate - non-owner occupied | | | | | | | Multi family | — | | — | | — | | | — | | | Other | 48,049 | | — | | 48,049 | | | 10,999 | | | Total commercial real estate - non-owner occupied | 48,049 | | — | | 48,049 | | | 10,999 | | | Consumer | — | | 270 | | 270 | | | 270 | | | Loans, net of unearned income | $ | 85,585 | | $ | 47,130 | | $ | 132,715 | | | $ | 21,435 | |
The decrease in collateral dependent loans and the allowance with respect thereto since December 31, 2025 is primarily due to a decrease in the number of loans requiring individual evaluation in the Construction and Land Development and Commercial Real Estate - Owner Occupied segments. Allowance for Credit Losses on Unfunded Loan Commitments The following table provides a roll-forward of the allowance for credit losses on unfunded loan commitments for the periods presented. | | | | | | | | | | | | | Three months ended June 30, | 2026 | | 2025 | | Allowance for credit losses on unfunded loan commitments: | | | | | Beginning balance | $ | 33,683 | | | $ | 17,643 | | | Provision for credit losses on unfunded loan commitments | 2,633 | | | 5,922 | | | Ending balance | $ | 36,316 | | | $ | 23,565 | | | | | | | Six Months Ended June 30, | 2026 | | 2025 | | Allowance for credit losses on unfunded loan commitments: | | | | | Beginning balance | $ | 29,827 | | | $ | 14,943 | | | Provision for credit losses on unfunded loan commitments | 6,489 | | | 8,622 | | | Ending balance | $ | 36,316 | | | $ | 23,565 | |
The provision for credit losses on unfunded commitments in the second quarter of 2026 was primarily driven by growth in the balance of unfunded loan commitments in the commercial and industrial pool and the construction and land development pool.
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