The Company’s leases relate primarily to operating leases for office space and banking centers. The Company determines if an arrangement is a lease or contains a lease at inception. The Company’s leases have remaining lease terms of 1 to 15 years, which may include the option to extend the lease when it is reasonably certain for the Company to exercise that option. Operating lease right-of-use (“ROU”) assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company uses its incremental collateralized borrowing rate to determine the present value of lease payments.

Short-term leases and leases with variable lease costs are immaterial and the Company has one sublease arrangement. Sublease income was $840 thousand and $750 thousand for the three months ended June 30, 2026, and 2025, respectively, and $1.7 million and $1.6 million for the six months ended June 30, 2026, and 2025, respectively. As of June 30, 2026, operating lease ROU assets and lease liabilities were approximately $31.4 million. ROU assets and lease liabilities were classified as other assets and other liabilities, respectively.

As of June 30, 2026, the weighted average of remaining lease terms of the Company’s operating leases was 4.8 years. The weighted average discount rate used to determine the lease liabilities as of June 30, 2026, for the Company’s operating leases was 2.7%. Cash paid for the Company’s operating leases was $3.8 million and $2.9 million for the three months ended June 30, 2026, and 2025, respectively, and was $7.4 million and $5.9 million for the six months ended June 30, 2026, and 2025, respectively. During the six months ended June 30, 2026, the Company obtained $8.1 million in ROU assets in exchange for lease liabilities for ten operating leases, of which five were related to the American Merger and the Southwest Merger.

The Company’s future undiscounted cash payments associated with its operating leases as of June 30, 2026, are summarized below (dollars in thousands).


Remaining 2026	$	5,941
2027		9,094
2028		6,164
2029		4,750
2030		3,502
2031		2,498
Thereafter		8,103
Total undiscounted lease payments	$	40,052

In the normal course of business, the Company enters into various transactions that, in accordance with GAAP, are not included in its consolidated balance sheets. The Company enters into these transactions to meet the financing needs of its customers. These transactions include commitments to extend credit and standby letters of credit, which involve, to varying degrees, elements of credit risk and interest rate risk in excess of the amounts recognized in the consolidated balance sheets.

The Company’s commitments associated with outstanding standby letters of credit, unused capacity on Warehouse Purchase Program loans and commitments to extend credit expiring by period as of June 30, 2026, are summarized below. Since commitments associated with letters of credit, unused capacity on Warehouse Purchase Program loans and commitments to extend credit may expire unused, the amounts shown may not necessarily reflect the actual future cash funding requirements.


	1 year or less		More than 1 year but less than 3 years		3 years or more but less than 5 years		5 years or more		Total
	(Dollars in thousands)
Standby letters of credit	$	103,776	$	13,562	$	2,291	$	26	$	119,655
Unused capacity on Warehouse Purchase Program loans		879,845		—		—		—		879,845
Commitments to extend credit		2,143,353		1,467,333		277,750		1,140,844		5,029,280
Total	$	3,126,974	$	1,480,895	$	280,041	$	1,140,870	$	6,028,780

Allowance For Credit Losses - Off-Balance-Sheet Credit Exposures

The Company records an allowance for credit losses on off-balance sheet credit exposures that is adjusted through an entry to provision for credit losses on the Company’s consolidated statement of income. At June 30, 2026, and December 31, 2025, this allowance, reported as a separate line item on the Company’s consolidated balance sheet, totaled $37.6 million.