v3.26.1
Loans and Allowance for Credit Losses on Loans
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
Loans and Allowance for Credit Losses on Loans Loans and Allowance for Credit Losses on Loans
Loans consist of the following at the dates indicated(1):
June 30, 2026December 31, 2025
Commercial real estate
Construction and land development$326,985 $277,028 
Commercial real estate – owner occupied536,475 562,049 
Commercial real estate – non-owner occupied875,143 832,502 
Multifamily128,492 110,912 
Total commercial real estate1,867,095 1,782,491 
Commercial
Commercial and industrial392,876 378,686 
Equipment finance260,670 311,356 
Municipal leases169,611 166,396 
Total commercial823,157 856,438 
Residential real estate
Construction and land development47,694 45,617 
One-to-four family617,469 633,511 
HELOCs236,357 217,310 
Total residential real estate901,520 896,438 
Consumer30,472 42,787 
Total loans, net of deferred loan fees and costs3,622,244 3,578,154 
Allowance for credit losses – loans(39,789)(41,479)
Loans, net$3,582,455 $3,536,675 
(1)    June 30, 2026 and December 31, 2025 accrued interest receivable of $13,845 and $15,305 was accounted for separately from the amortized cost basis.
All qualifying one-to-four family loans, HELOCs, commercial real estate loans and FHLB of Atlanta stock are pledged as collateral by a blanket pledge to secure outstanding FHLB advances.
Loans are made to the Company's executive officers, directors and their associates during the ordinary course of business. The aggregate amount of loans to related parties totaled $0 at both June 30, 2026 and December 31, 2025. In relation to these loans are unfunded commitments that totaled approximately $3 at both June 30, 2026 and December 31, 2025.
Loans are monitored for credit quality on a recurring basis and the composition of the loans outstanding by credit quality indicator is provided below. Loan credit quality indicators are developed through review of individual borrowers on an ongoing basis. Generally, loans are monitored for performance on a quarterly basis with the credit quality indicators adjusted as needed. The indicators represent the rating for loans as of the date presented based on the most recent assessment performed. These credit quality indicators are defined as follows:
Pass – A pass rated loan is not adversely classified because it does not display any of the characteristics for adverse classification.
Special Mention – A special mention loan has potential weaknesses that deserve management’s close attention. If left uncorrected, such potential weaknesses may result in deterioration of the repayment prospects or collateral position at some future date. Special mention loans are not adversely classified and do not warrant adverse classification.
Substandard – A substandard loan is inadequately protected by the current net worth and paying capacity of the obligor, or of the collateral pledged, if any. Loans classified as substandard generally have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. These loans are characterized by the distinct possibility of loss if the deficiencies are not corrected.
Doubtful – A loan classified as doubtful has all the weaknesses inherent in a loan classified substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable, on the basis of currently existing facts, conditions and values.
Loss – Loans classified as loss are considered uncollectible and of such little value that their continuing to be carried as a loan is not warranted. This classification is not necessarily equivalent to no potential for recovery or salvage value, but rather that it is not appropriate to defer a full write-off even though partial recovery may be effected in the future.
The following table presents the credit risk profile by risk grade for commercial real estate, commercial, residential real estate and consumer loans by origination year as of June 30, 2026. Also included in the table detailing loan balances are gross charge-offs for the six months ended June 30, 2026:
Term Loans By Origination Fiscal Year
June 30, 2026202620252024
2023-S(1)
2023PriorRevolvingTotal
Construction and land development
Risk rating
Pass$64,316 $157,816 $49,021 $15,290 $5,746 $22,403 $11,921 $326,513 
Special mention— — — — — — — — 
Substandard— — — — — 472 — 472 
Doubtful
— — — — — — — — 
Loss— — — — — — — — 
Total construction and land development$64,316 $157,816 $49,021 $15,290 $5,746 $22,875 $11,921 $326,985 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Commercial real estate – owner occupied
Risk rating
Pass$37,983 $74,667 $50,843 $38,111 $56,037 $242,127 $7,887 $507,655 
Special mention— — — — 1,358 14,626 — 15,984 
Substandard— — 1,388 3,185 2,525 3,823 — 10,921 
Doubtful— — — — 1,897 14 — 1,911 
Loss— — — — — 4 — 4 
Total commercial real estate – owner occupied$37,983 $74,667 $52,231 $41,296 $61,817 $260,594 $7,887 $536,475 
Current period gross charge-offs$— $— $— $— $— $15 $— $15 
Commercial real estate – non-owner occupied
Risk rating
Pass$82,644 $83,157 $64,578 $12,013 $84,034 $522,237 $14,074 $862,737 
Special mention— — — — 753 6,044 — 6,797 
Substandard— — — — — 5,298 — 5,298 
Doubtful— — — — — 311 — 311 
Loss— — — — — — — — 
Total commercial real estate – non-owner occupied$82,644 $83,157 $64,578 $12,013 $84,787 $533,890 $14,074 $875,143 
Current period gross charge-offs$— $— $— $— $— $654 $— $654 
Multifamily
Risk rating
Pass$19,162 $9,213 $18,681 $5,586 $4,444 $70,081 $50 $127,217 
Special mention— — — — — 232 — 232 
Substandard— — — — — 1,043 — 1,043 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total multifamily$19,162 $9,213 $18,681 $5,586 $4,444 $71,356 $50 $128,492 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Total commercial real estate
Risk rating
Pass$204,105 $324,853 $183,123 $71,000 $150,261 $856,848 $33,932 $1,824,122 
Special mention— — — — 2,111 20,902 — 23,013 
Substandard— — 1,388 3,185 2,525 10,636 — 17,734 
Doubtful— — — — 1,897 325 — 2,222 
Loss— — — — — 4 — 4 
Total commercial real estate$204,105 $324,853 $184,511 $74,185 $156,794 $888,715 $33,932 $1,867,095 
Total current period gross charge-offs$— $— $— $— $— $669 $— $669 
(1)As previously announced, on July 24, 2023, the Board of Directors approved a change in the Company's fiscal year end from June 30 to December 31. "2023-S" represents the six-month transition period ended December 31, 2023. All subsequent periods are based on a calendar year end.
Term Loans By Origination Fiscal Year
June 30, 2026202620252024
2023-S(1)
2023PriorRevolvingTotal
Commercial and industrial
Risk rating
Pass$19,317 $105,905 $64,850 $29,597 $22,214 $31,076 $90,638 $363,597 
Special mention— 61 30 — 518 7,405 3,010 11,024 
Substandard— 786 4,189 2,823 800 6,797 297 15,692 
Doubtful
188 — 506 — — 1,869 — 2,563 
Loss— — — — — — — — 
Total commercial and industrial$19,505 $106,752 $69,575 $32,420 $23,532 $47,147 $93,945 $392,876 
Current period gross charge-offs$— $— $21 $— $125 $498 $25 $669 
Equipment finance
Risk rating
Pass$19,825 $54,492 $61,412 $34,458 $53,374 $26,381 $— $249,942 
Special mention— 292 998 178 1,930 371 — 3,769 
Substandard— 996 501 916 1,854 874 — 5,141 
Doubtful— 333 330 341 547 258 — 1,809 
Loss— — — — — 9 — 9 
Total equipment finance$19,825 $56,113 $63,241 $35,893 $57,705 $27,893 $— $260,670 
Current period gross charge-offs$— $498 $124 $138 $821 $1,256 $— $2,837 
Municipal leases
Risk rating
Pass$12,727 $20,380 $28,624 $14,260 $18,612 $75,008 $— $169,611 
Special mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total municipal leases$12,727 $20,380 $28,624 $14,260 $18,612 $75,008 $— $169,611 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Total commercial
Risk rating
Pass$51,869 $180,777 $154,886 $78,315 $94,200 $132,465 $90,638 $783,150 
Special mention— 353 1,028 178 2,448 7,776 3,010 14,793 
Substandard— 1,782 4,690 3,739 2,654 7,671 297 20,833 
Doubtful188 333 836 341 547 2,127 — 4,372 
Loss— — — — — 9 — 9 
Total commercial$52,057 $183,245 $161,440 $82,573 $99,849 $150,048 $93,945 $823,157 
Total current period gross charge-offs$— $498 $145 $138 $946 $1,754 $25 $3,506 
Term Loans By Origination Fiscal Year
June 30, 2026202620252024
2023-S(1)
2023PriorRevolvingTotal
Construction and land development
Risk rating
Pass$8,812 $27,290 $3,115 $726 $2,385 $5,366 $— $47,694 
Special mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total construction and land development$8,812 $27,290 $3,115 $726 $2,385 $5,366 $— $47,694 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
One-to-four family
Risk rating
Pass$28,180 $50,520 $32,185 $18,666 $141,347 $329,599 $6,703 $607,200 
Special mention— — — — — 267 — 267 
Substandard— — 1,697 1,234 1,400 5,660 — 9,991 
Doubtful— — — — — 11 — 11 
Loss— — — — — — — — 
Total one-to-four family$28,180 $50,520 $33,882 $19,900 $142,747 $335,537 $6,703 $617,469 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
HELOCs
Risk rating
Pass$— $— $— $— $— $— $225,815 $225,815 
Special mention— — — — — — — — 
Substandard— — — — — — 10,542 10,542 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total HELOCs$— $— $— $— $— $— $236,357 $236,357 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Total residential real estate
Risk rating
Pass$36,992 $77,810 $35,300 $19,392 $143,732 $334,965 $232,518 $880,709 
Special mention— — — — — 267 — 267 
Substandard— — 1,697 1,234 1,400 5,660 10,542 20,533 
Doubtful— — — — — 11 — 11 
Loss— — — — — — — — 
Total residential real estate$36,992 $77,810 $36,997 $20,626 $145,132 $340,903 $243,060 $901,520 
Total current period gross charge-offs$— $— $— $— $— $— $— $— 
Term Loans By Origination Fiscal Year
June 30, 2026202620252024
2023-S(1)
2023PriorRevolvingTotal
Total consumer
Risk rating
Pass$791 $896 $1,972 $8,155 $13,445 $4,007 $237 $29,503 
Special mention— — — — — — — — 
Substandard— 16 44 263 482 161 3 969 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total consumer$791 $912 $2,016 $8,418 $13,927 $4,168 $240 $30,472 
Total current period gross charge-offs$— $6 $12 $86 $266 $88 $21 $479 
The following table presents the credit risk profile by risk grade for commercial real estate, commercial, residential real estate and consumer loans by origination year as of December 31, 2025. Also included in the table detailing loan balances are gross charge-offs for the year ended December 31, 2025:
Term Loans By Origination Fiscal Year
December 31, 202520252024
2023-S(1)
20232022PriorRevolvingTotal
Construction and land development
Risk rating
Pass$133,327 $85,217 $21,775 $5,722 $16,693 $11,108 $2,805 $276,647 
Special mention— — — — — — — — 
Substandard— — — — 381 — — 381 
Doubtful
— — — — — — — — 
Loss— — — — — — — — 
Total construction and land development$133,327 $85,217 $21,775 $5,722 $17,074 $11,108 $2,805 $277,028 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Commercial real estate – owner occupied
Risk rating
Pass$78,784 $52,556 $42,988 $60,162 $84,571 $218,775 $5,589 $543,425 
Special mention— — — 655 241 2,375 — 3,271 
Substandard— 1,406 918 162 4,949 5,767 — 13,202 
Doubtful— — — 1,895 244 12 — 2,151 
Loss— — — — — — — — 
Total commercial real estate – owner occupied$78,784 $53,962 $43,906 $62,874 $90,005 $226,929 $5,589 $562,049 
Current period gross charge-offs$— $— $— $138 $90 $— $— $228 
Commercial real estate – non-owner occupied
Risk rating
Pass$77,184 $55,342 $12,561 $91,992 $131,895 $433,461 $8,523 $810,958 
Special mention— — — 754 — 9,226 — 9,980 
Substandard— — — 2,591 — 8,973 — 11,564 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total commercial real estate – non-owner occupied$77,184 $55,342 $12,561 $95,337 $131,895 $451,660 $8,523 $832,502 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Multifamily
Risk rating
Pass$9,361 $15,105 $5,638 $4,881 $9,916 $65,560 $— $110,461 
Special mention— — — — — 285 — 285 
Substandard— — — — — 166 — 166 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total multifamily$9,361 $15,105 $5,638 $4,881 $9,916 $66,011 $— $110,912 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Total commercial real estate
Risk rating
Pass$298,656 $208,220 $82,962 $162,757 $243,075 $728,904 $16,917 $1,741,491 
Special mention— — — 1,409 241 11,886 — 13,536 
Substandard— 1,406 918 2,753 5,330 14,906 — 25,313 
Doubtful— — — 1,895 244 12 — 2,151 
Loss— — — — — — — — 
Total commercial real estate$298,656 $209,626 $83,880 $168,814 $248,890 $755,708 $16,917 $1,782,491 
Total current period gross charge-offs$— $— $— $138 $90 $— $— $228 
(1)As previously announced, on July 24, 2023, the Board of Directors approved a change in the Company's fiscal year end from June 30 to December 31. "2023-S" represents the six-month transition period ended December 31, 2023. All subsequent periods are based on a calendar year end.
Term Loans By Origination Fiscal Year
December 31, 202520252024
2023-S(1)
20232022PriorRevolvingTotal
Commercial and industrial
Risk rating
Pass$101,886 $73,327 $33,005 $29,181 $24,786 $20,049 $75,308 $357,542 
Special mention392 290 2,651 910 312 2,478 2,497 9,530 
Substandard— 3,157 — 252 1,929 3,643 100 9,081 
Doubtful
— 505 — 122 89 1,794 23 2,533 
Loss— — — — — — — — 
Total commercial and industrial$102,278 $77,279 $35,656 $30,465 $27,116 $27,964 $77,928 $378,686 
Current period gross charge-offs$— $151 $362 $241 $1,318 $472 $— $2,544 
Equipment finance
Risk rating
Pass$63,176 $76,224 $43,547 $73,355 $31,444 $13,466 $— $301,212 
Special mention172 151 255 615 232 185 — 1,610 
Substandard673 1,117 173 2,096 871 417 — 5,347 
Doubtful— 57 415 1,353 1,067 295 — 3,187 
Loss— — — — — — — — 
Total equipment finance$64,021 $77,549 $44,390 $77,419 $33,614 $14,363 $— $311,356 
Current period gross charge-offs$— $167 $454 $2,829 $2,711 $466 $— $6,627 
Municipal leases
Risk rating
Pass$19,195 $29,939 $15,546 $20,701 $18,934 $62,081 $— $166,396 
Special mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total municipal leases$19,195 $29,939 $15,546 $20,701 $18,934 $62,081 $— $166,396 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Total commercial
Risk rating
Pass$184,257 $179,490 $92,098 $123,237 $75,164 $95,596 $75,308 $825,150 
Special mention564 441 2,906 1,525 544 2,663 2,497 11,140 
Substandard673 4,274 173 2,348 2,800 4,060 100 14,428 
Doubtful— 562 415 1,475 1,156 2,089 23 5,720 
Loss— — — — — — — — 
Total commercial$185,494 $184,767 $95,592 $128,585 $79,664 $104,408 $77,928 $856,438 
Total current period gross charge-offs$— $318 $816 $3,070 $4,029 $938 $— $9,171 
Term Loans By Origination Fiscal Year
December 31, 202520252024
2023-S(1)
20232022PriorRevolvingTotal
Construction and land development
Risk rating
Pass$24,620 $7,350 $1,054 $5,753 $4,173 $2,254 $— $45,204 
Special mention— — — — — — — — 
Substandard— — 413 — — — — 413 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total construction and land development$24,620 $7,350 $1,467 $5,753 $4,173 $2,254 $— $45,617 
Current period gross charge-offs$— $— $— $— $— $132 $— $132 
One-to-four family
Risk rating
Pass$45,062 $40,995 $22,428 $152,935 $139,276 $213,367 $11,814 $625,877 
Special mention— — — — 21 282 — 303 
Substandard— 661 835 1,074 764 3,984 — 7,318 
Doubtful— — — — — 13 — 13 
Loss— — — — — — — — 
Total one-to-four family$45,062 $41,656 $23,263 $154,009 $140,061 $217,646 $11,814 $633,511 
Current period gross charge-offs$— $— $— $— $— $50 $— $50 
HELOCs
Risk rating
Pass$— $— $— $— $— $— $208,402 $208,402 
Special mention— — — — — — — — 
Substandard— — — — — — 8,908 8,908 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total HELOCs$— $— $— $— $— $— $217,310 $217,310 
Current period gross charge-offs$— $— $— $— $— $— $40 $40 
Total residential real estate
Risk rating
Pass$69,682 $48,345 $23,482 $158,688 $143,449 $215,621 $220,216 $879,483 
Special mention— — — — 21 282 — 303 
Substandard— 661 1,248 1,074 764 3,984 8,908 16,639 
Doubtful— — — — — 13 — 13 
Loss— — — — — — — — 
Total residential real estate$69,682 $49,006 $24,730 $159,762 $144,234 $219,900 $229,124 $896,438 
Total current period gross charge-offs$— $— $— $— $— $182 $40 $222 
Term Loans By Origination Fiscal Year
December 31, 202520252024
2023-S(1)
20232022PriorRevolvingTotal
Total consumer
Risk rating
Pass$2,346 $2,688 $10,866 $18,552 $4,392 $2,463 $244 $41,551 
Special mention— — — — — — — — 
Substandard— 31 168 644 127 247 16 1,233 
Doubtful— 1 — — 2 — — 3 
Loss— — — — — — — — 
Total consumer$2,346 $2,720 $11,034 $19,196 $4,521 $2,710 $260 $42,787 
Total current period gross charge-offs$3 $68 $131 $306 $65 $79 $— $652 
The following tables present aging analyses of past due loans (including nonaccrual loans) by segment and class as of the dates indicated.
Past DueTotal Loans
30-89 Days90 Days+
Total(1)
Current
June 30, 2026
Commercial real estate
Construction and land development$— $472 $472 $326,513 $326,985 
Commercial real estate – owner occupied14,619 6,760 21,379 515,096 536,475 
Commercial real estate – non-owner occupied1,718 1,463 3,181 871,962 875,143 
Multifamily— 837 837 127,655 128,492 
Total commercial real estate16,337 9,532 25,869 1,841,226 1,867,095 
Commercial
Commercial and industrial4,425 12,610 17,035 375,841 392,876 
Equipment finance6,105 3,415 9,520 251,150 260,670 
Municipal leases— — — 169,611 169,611 
Total commercial10,530 16,025 26,555 796,602 823,157 
Residential real estate
Construction and land development— — — 47,694 47,694 
One-to-four family3,817 3,357 7,174 610,295 617,469 
HELOCs3,007 5,390 8,397 227,960 236,357 
Total residential real estate6,824 8,747 15,571 885,949 901,520 
Consumer1,104 171 1,275 29,197 30,472 
Total loans$34,795 $34,475 $69,270 $3,552,974 $3,622,244 
Past Due(2)
Total Loans
30-89 Days90 Days+
Total(1)
Current
December 31, 2025
Commercial real estate
Construction and land development$— $381 $381 $276,647 $277,028 
Commercial real estate – owner occupied7,434 4,352 11,786 550,263 562,049 
Commercial real estate – non-owner occupied1,479 5,422 6,901 825,601 832,502 
Multifamily— — — 110,912 110,912 
Total commercial real estate8,913 10,155 19,068 1,763,423 1,782,491 
Commercial
Commercial and industrial1,625 8,306 9,931 368,755 378,686 
Equipment finance8,185 5,501 13,686 297,670 311,356 
Municipal leases— — — 166,396 166,396 
Total commercial9,810 13,807 23,617 832,821 856,438 
Residential real estate
Construction and land development699 — 699 44,918 45,617 
One-to-four family25,822 2,774 28,596 604,915 633,511 
HELOCs3,211 5,393 8,604 208,706 217,310 
Total residential real estate29,732 8,167 37,899 858,539 896,438 
Consumer1,441 361 1,802 40,985 42,787 
Total loans$49,896 $32,490 $82,386 $3,495,768 $3,578,154 
(1)Of the past due totals presented above, $19,193 and $14,307 of these balances were fully guaranteed by the SBA as of June 30, 2026 and December 31, 2025, respectively.
(2)Reflects a change in prior period disclosures where, for loans with monthly payments, they were previously considered past due when a loan is in arrears two or more payments. Under the updated disclosure, these loans are considered past due when the loan is in arrears one or more payments. The most significant impact was to the "30-89 Days" column where the total balance increased by $37,194, with the one-to-four family residential real estate portfolio making up $22,393 of the change.
The following table presents the recorded investment in loans on nonaccrual status, by segment and class, including restructured loans. It also includes interest income recognized on nonaccrual loans for the six months ended June 30, 2026.
June 30, 2026(1)
December 31, 2025(1)
90 Days+ &
Still Accruing as of June 30, 2026
Nonaccrual with No ACL as of June 30, 2026
Interest Income Recognized
Commercial real estate
Construction and land development$472 $381 $— $— $— 
Commercial real estate – owner occupied11,996 10,467 — 2,120 359 
Commercial real estate – non-owner occupied4,273 6,566 — 1,403 214 
Multifamily838 — — — 13 
Total commercial real estate17,579 17,414 — 3,523 586 
Commercial
Commercial and industrial14,617 9,786 — 239 149 
Equipment finance5,003 6,690 — — 113 
Municipal leases— — — — — 
Total commercial19,620 16,476 — 239 262 
Residential real estate
Construction and land development— — — — — 
One-to-four family5,168 2,961 — — 113 
HELOCs7,797 6,523 — — 159 
Total residential real estate12,965 9,484 — — 272 
Consumer438 402 — — 25 
Total loans$50,602 $43,776 $— $3,762 $1,145 
(1)Of the nonaccrual totals presented above, $23,563 and $14,885 of these balances were fully guaranteed by the SBA as of June 30, 2026 and December 31, 2025, respectively.
The following tables present analyses of the ACL on loans by segment for the periods indicated below. In addition to the provision (benefit) for credit losses on loans presented below, benefits of $100 and $675 for off-balance sheet credit exposures were recorded for the three and six months ended June 30, 2026, respectively. A benefit of $82 and a provision of $658 for off-balance sheet credit exposures were recorded for the three and six months ended June 30, 2025, respectively.
Three Months Ended June 30, 2026
Commercial Real EstateCommercialResidential Real EstateConsumerTotal
Balance at beginning of period$19,781 $12,047 $8,452 $327 $40,607 
Provision for credit losses664 153 12 191 1,020 
Charge-offs(654)(1,445)— (223)(2,322)
Recoveries40 353 9 82 484 
Net (charge-offs) recoveries(614)(1,092)9 (141)(1,838)
Balance at end of period$19,831 $11,108 $8,473 $377 $39,789 
Three Months Ended June 30, 2025
Commercial Real EstateCommercialResidential Real EstateConsumerTotal
Balance at beginning of period$19,565 $14,863 $9,330 $984 $44,742 
Provision (benefit) for credit losses(520)2,385 (435)(45)1,385 
Charge-offs— (1,776)(178)(190)(2,144)
Recoveries— 97 5 54 156 
Net (charge-offs) recoveries— (1,679)(173)(136)(1,988)
Balance at end of period$19,045 $15,569 $8,722 $803 $44,139 
Six Months Ended June 30, 2026
Commercial Real EstateCommercialResidential Real EstateConsumerTotal
Balance at beginning of period$19,298 $13,331 $8,492 $358 $41,479 
Provision (benefit) for credit losses1,162 659 (203)347 1,965 
Charge-offs(669)(3,506)— (479)(4,654)
Recoveries40 624 184 151 999 
Net (charge-offs) recoveries(629)(2,882)184 (328)(3,655)
Balance at end of period$19,831 $11,108 $8,473 $377 $39,789 
Six Months Ended June 30, 2025
Commercial Real EstateCommercialResidential Real EstateConsumerTotal
Balance at beginning of period$19,284 $15,267 $9,664 $1,070 $45,285 
Provision (benefit) for credit losses(277)3,275 (773)(40)2,185 
Charge-offs— (3,386)(188)(366)(3,940)
Recoveries38 413 19 139 609 
Net (charge-offs) recoveries38 (2,973)(169)(227)(3,331)
Balance at end of period$19,045 $15,569 $8,722 $803 $44,139 
A loan is considered to be collateral dependent when the borrower is experiencing financial difficulty and the repayment is expected to be provided substantially through the operation or sale of the collateral. The following tables provide a breakdown between loans identified as CDAs and non-CDAs, by segment and class, as well as collateral coverage for those loans at the dates indicated below:
Type and Extent of Collateral Securing CDAsNon-CDAs
June 30, 2026Residential PropertyInvestment PropertyCommercial PropertyBusiness AssetsTotal
Commercial real estate
Construction and land development$— $— $— $— $326,985 $326,985 
Commercial real estate – owner occupied— — 2,635 — 533,840 536,475 
Commercial real estate – non-owner occupied— — 1,403 — 873,740 875,143 
Multifamily— — — — 128,492 128,492 
Total commercial real estate— — 4,038 — 1,863,057 1,867,095 
Commercial
Commercial and industrial— — — — 392,876 392,876 
Equipment finance— — — — 260,670 260,670 
Municipal leases— — — — 169,611 169,611 
Total commercial— — — — 823,157 823,157 
Residential real estate
Construction and land development— — — — 47,694 47,694 
One-to-four family— — — — 617,469 617,469 
HELOCs— — — — 236,357 236,357 
Total residential real estate— — — — 901,520 901,520 
Consumer— — — — 30,472 30,472 
Total$— $— $4,038 $— $3,618,206 $3,622,244 
Total collateral value$— $— $5,164 $— 
Type and Extent of Collateral Securing CDAsNon-CDAs
December 31, 2025Residential PropertyInvestment PropertyCommercial PropertyBusiness AssetsTotal
Commercial real estate
Construction and land development$— $— $— $— $277,028 $277,028 
Commercial real estate – owner occupied— — 3,532 — 558,517 562,049 
Commercial real estate – non-owner occupied— — 4,699 — 827,803 832,502 
Multifamily— — — — 110,912 110,912 
Total commercial real estate— — 8,231 — 1,774,260 1,782,491 
Commercial
Commercial and industrial— — — — 378,686 378,686 
Equipment finance— — — 2,087 309,269 311,356 
Municipal leases— — — — 166,396 166,396 
Total commercial— — — 2,087 854,351 856,438 
Residential real estate
Construction and land development— — — — 45,617 45,617 
One-to-four family— — — — 633,511 633,511 
HELOCs— — — — 217,310 217,310 
Total residential real estate— — — — 896,438 896,438 
Consumer— — — — 42,787 42,787 
Total$— $— $8,231 $2,087 $3,567,836 $3,578,154 
Total collateral value$— $— $9,605 $1,299 
Modifications to Borrowers Experiencing Financial Difficulty
The Company modifies loans to borrowers experiencing financial difficulty by providing principal forgiveness, a term extension, an other-than-insignificant payment delay or interest rate adjustments. In some cases, the Company provides multiple types of modifications on one loan. Typically, one type of modification, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another modification, such as principal forgiveness, may be granted. For loans included in the combination columns in the table below, multiple types of modifications have been made on the same loan within the current reporting period.
The following tables present the amortized cost basis of loans at June 30, 2026 and 2025, that were both experiencing financial difficulty and modified during the three and six months ended June 30, 2026 and 2025, by class and type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial difficulty as compared to the amortized cost basis of each class of financing receivable is also presented.
Three Months Ended June 30, 2026
Principal ForgivenessPayment DelayTerm ExtensionInterest Rate AdjustmentCombination Term Extension & Principal ForgivenessCombination Term Extension & Interest Rate Reduction% of Total Class of Financing Receivable
Commercial real estate
Commercial real estate – owner occupied$— $— $— $1,485 $— $— 0.28 %
Commercial loans
Commercial and industrial— 743 70 — — 1,624 0.62 
Total$— $743 $70 $1,485 $— $1,624 0.11 %
Three Months Ended June 30, 2025
Principal ForgivenessPayment DelayTerm ExtensionInterest Rate AdjustmentCombination Term Extension & Principal ForgivenessCombination Term Extension & Interest Rate Reduction% of Total Class of Financing Receivable
Commercial real estate
Commercial real estate – non-owner occupied$— $755 $350 $— $— $— 0.13 %
Commercial loans
Commercial and industrial— 2,306 45 — — — 0.64 
Residential real estate loans
One-to-four family— — 50 — — — 0.01 
Total$— $3,061 $445 $— $— $— 0.10 %
Six Months Ended June 30, 2026
Principal ForgivenessPayment DelayTerm ExtensionInterest Rate AdjustmentCombination Term Extension & Principal ForgivenessCombination Term Extension & Interest Rate Reduction% of Total Class of Financing Receivable
Commercial real estate
Commercial real estate – owner occupied$— $780 $— $2,818 $— $— 0.67 %
Commercial real estate – non-owner occupied— 1,700 — — — — 0.19 
Commercial loans
Commercial and industrial— 3,323 210 — — 1,624 1.31 
Total$— $5,803 $210 $2,818 $— $1,624 0.29 %
Six Months Ended June 30, 2025
Principal ForgivenessPayment DelayTerm ExtensionInterest Rate AdjustmentCombination Term Extension & Principal ForgivenessCombination Term Extension & Interest Rate Reduction% of Total Class of Financing Receivable
Commercial real estate
Commercial real estate – owner occupied$— $774 $— $— $— $— 0.14 %
Commercial real estate – non-owner occupied— 755 350 — — — 0.13 
Commercial loans
Commercial and industrial— 2,854 419 115 — — 0.92 
Residential real estate loans
One-to-four family— — 50 — — — 0.01 
Total$— $4,383 $819 $115 $— $— 0.14 %
The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the periods indicated below:
Three Months Ended June 30, 2026
Principal ForgivenessWeighted-Average Interest Rate ReductionWeighted-Average Term Extension (Years)
Commercial real estate
Commercial real estate – owner occupied$— 1.3 %— 
Commercial loans
Commercial and industrial— 4.6 5.2
Total$— 3.0 %5.2
Three Months Ended June 30, 2025
Principal ForgivenessWeighted-Average Interest Rate ReductionWeighted-Average Term Extension (Years)
Commercial real estate
  Commercial real estate – non-owner occupied$— — %5.5
Commercial loans
Commercial and industrial— — 10.2
Residential real estate loans
One-to-four family— — 10.6
Total$— — %6.5
Six Months Ended June 30, 2026
Principal ForgivenessWeighted-Average Interest Rate ReductionWeighted-Average Term Extension (Years)
Commercial real estate
Commercial real estate – owner occupied$— 2.8 %— 
Commercial loans
Commercial and industrial— 4.6 5.2
Total$— 3.4 %5.2
Six Months Ended June 30, 2025
Principal ForgivenessWeighted-Average Interest Rate ReductionWeighted-Average Term Extension (Years)
Commercial real estate
  Commercial real estate – non-owner occupied$— — %5.5
Commercial loans
Commercial and industrial— 7.0 10.0
Residential real estate loans
One-to-four family— — 10.6
Total$— 7.0 %8.9
The following tables present loans that had a payment default during the periods indicated that had previously been modified within the prior twelve months. For purposes of these tables, a loan is considered to be in default when it becomes 30 days contractually past due under the modified terms.
Three Months Ended June 30, 2026
Principal ForgivenessPayment DelayTerm ExtensionInterest Rate Adjustment
Commercial real estate
Commercial real estate – owner occupied$— $294 $— $— 
Commercial loans
Commercial and industrial— 1,571 824 — 
Total$— $1,865 $824 $— 
Three Months Ended June 30, 2025
Principal ForgivenessPayment DelayTerm ExtensionInterest Rate Adjustment
Commercial loans
Equipment finance$— $— $— $115 
Six Months Ended June 30, 2026
Principal ForgivenessPayment DelayTerm ExtensionInterest Rate Adjustment
Commercial real estate
Commercial real estate – owner occupied$— $294 $— $— 
Commercial loans
Commercial and industrial— 2,636 824 — 
Total$— $2,930 $824 $— 
Six Months Ended June 30, 2025
Principal ForgivenessPayment DelayTerm ExtensionInterest Rate Adjustment
Commercial real estate
Commercial real estate – owner occupied$— $675 $— $161 
Commercial loans
Commercial and industrial— — 132 — 
Equipment finance— — — 115 
Total$— $675 $132 $276 
Off-Balance Sheet Credit Exposure
The Company maintains a separate reserve for credit losses on off-balance sheet credit exposures, including unfunded loan commitments, which is included in other liabilities on the consolidated balance sheet. The reserve for credit losses on off-balance sheet credit exposures is adjusted as a provision for credit losses in the consolidated statement of income. The estimate includes consideration of the likelihood that funding will occur and an estimate of ECLs on commitments expected to be funded over its estimated life, utilizing the same models and approaches for the Company's other loan portfolio segments described above, as these unfunded commitments share similar risk characteristics as its loan portfolio segments. The Company has identified the unfunded portion of certain lines of credit as unconditionally cancellable credit exposures, meaning the Company can cancel the unfunded commitment at any time. No credit loss estimate is reported for off-balance sheet credit exposures that are unconditionally cancellable by the Company or for undrawn amounts under such arrangements that may be drawn prior to the cancellation of the arrangement. At June 30, 2026 and December 31, 2025, the ACL on off-balance sheet credit exposures included in other liabilities was $3,470 and $4,145, respectively.