Allowance for Credit Losses

6 Months Ended

Jun. 30, 2026

Note 7 Allowance for Credit Losses

The tables below detail the Company’s allowance for credit losses as of the dates shown:


	Three months ended June 30, 2026
			Non-owner
			occupied
			commercial		Residential
	Commercial		real estate		real estate		Consumer		Total
Beginning balance	$	55,369	$	38,030	$	19,792	$	286	$	113,477
Allowance for credit loss at acquisition		2,920		(447)		—		—		2,473
Charge-offs		(6,311)		(1)		(25)		(171)		(6,508)
Recoveries		1		—		40		38		79
Provision expense (release) for credit losses on loans		2,482		(2,281)		412		137	`	750
Ending balance	$	54,461	$	35,301	$	20,219	$	290	$	110,271

	Six months ended June 30, 2026
			Non-owner
			occupied
			commercial		Residential
	Commercial		real estate		real estate		Consumer		Total
Beginning balance	$	47,482	$	23,076	$	16,597	$	260	$	87,415
Allowance for credit loss at acquisition		13,092		14,618		4,208		17		31,935
Charge-offs		(13,762)		(1)		(76)		(426)		(14,265)
Recoveries		14		—		42		80		136
Provision expense (release) for credit losses on loans		7,635		(2,392)		(552)		359		5,050
Ending balance	$	54,461	$	35,301	$	20,219	$	290	$	110,271


	Three months ended June 30, 2025
			Non-owner
			occupied
			commercial		Residential
	Commercial		real estate		real estate		Consumer		Total
Beginning balance	$	48,058	$	23,494	$	18,307	$	333	$	90,192
Charge-offs		(977)		—		(1)		(180)		(1,158)
Recoveries		105		—		31		34		170
Provision expense (release) for credit losses on loans		748		(1,275)		92		124		(311)
Ending balance	$	47,934	$	22,219	$	18,429	$	311	$	88,893


	Six months ended June 30, 2025
			Non-owner
			occupied
			commercial		Residential
	Commercial		real estate		real estate		Consumer		Total
Beginning balance	$	48,552	$	26,136	$	19,426	$	341	$	94,455
Charge-offs		(14,546)		(1,467)		(1)		(395)		(16,409)
Recoveries		161		17		59		71		308
Provision expense (release) for credit losses on loans		13,767		(2,467)		(1,055)		294		10,539
Ending balance	$	47,934	$	22,219	$	18,429	$	311	$	88,893

In evaluating the loan portfolio for an appropriate ACL level, excluding loans evaluated individually, loans were grouped into segments based on broad characteristics such as primary use and underlying collateral. Within the segments, the portfolio was further disaggregated into classes of loans with similar attributes and risk characteristics for purposes of developing the underlying data used within the discounted cash flow model including, but not limited to, prepayment and recovery rates as well as loss rates tied to macro-economic conditions within management’s reasonable and supportable forecast. The ACL also includes subjective adjustments based upon qualitative risk factors including asset quality, loss trends, lending management, portfolio growth and loan review/internal audit results.

At June 30, 2026 and December 31, 2025, the allowance for credit losses totaled $110.3 million and $87.4 million, respectively. As a result of the Vista acquisition, we recorded $31.9 million of allowance for credit losses for the loans acquired. During the three months ended June 30, 2026, the Company recorded provision expense for credit losses totaling $1.5 million, including $750 thousand of provision expense for funded loans and $750 thousand of provision expense for unfunded loan commitments. During the six months ended June 30, 2026, the Company recorded provision expense for credit losses totaling $5.5 million, including $5.1 million of provision expense for funded loans and $0.4 million of provision expense for unfunded loan commitments. During the three months ended June 30, 2025, the Company recorded no provision expense for credit losses, During the six months ended June 30, 2025, the Company recorded provision expense for credit losses of $10.2 million, including provision expense for funded loans totaling $10.5 million and a provision release of $0.3 million for unfunded loan commitments.

During the three and six months ended June 30, 2026, net charge-offs on loans totaled $6.4 million and $14.1 million, respectively. During the three and six months ended June 30, 2025, net charge-offs on loans totaled $1.0 million and $16.1 million, respectively.

The Company has elected to exclude AIR from the allowance for credit losses calculation. As of June 30, 2026 and December 31, 2025, AIR from loans totaled $47.7 million and $38.3 million, respectively.