v3.26.1
Loans and Allowance for Credit Losses on Loans (Tables)
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
Schedule of Loans Held-for-Investment
The following table presents the composition of the Company’s loans held-for-investment as of the dates indicated.
($ in thousands)
June 30, 2026
December 31, 2025
Commercial real estate:
Commercial property
$1,120,171 $1,071,396 
Business property697,627 638,063 
Multifamily208,797 175,579 
Construction
11,121 18,561 
Total commercial real estate2,037,716 1,903,599 
Commercial and industrial494,944 508,662 
Consumer:
Residential mortgage393,414 401,337 
Other consumer5,945 6,802 
Total consumer399,359 408,139 
Loans held-for-investment
2,932,019 2,820,400 
Allowance for credit losses on loans(34,738)(33,381)
Net loans held-for-investment
$2,897,281 $2,787,019 
Schedule of Reclassification of ACL on Loans and Initial Adjustment to ACL
The following table presents a composition of provision for credit losses for the periods indicated:
Three Months Ended June 30,
Six Months Ended June 30,
($ in thousands)
2026
2025
2026
2025
Provision for credit losses on loans$798 $1,721 $1,416 $3,312 
Provision (reversal) for credit losses on off-balance sheet credit exposures128 66 (23)73 
Total provision for credit losses$926 $1,787 $1,393 $3,385 
The following tables present the activities in ACL on loans for the periods indicated:
($ in thousands)Commercial PropertyBusiness PropertyMultifamilyConstructionCommercial and IndustrialResidential MortgageOther ConsumerTotal
Balance at April 1, 2026
$10,716 $5,549 $1,518 $114 $13,122 $2,880 $44 $33,943 
Charge-offs— — — — (16)— (3)(19)
Recoveries— 1 — — 15 — — 16 
Provision (reversal) for credit losses on loans(576)(323)(101)(41)2,005 (180)14 798 
Balance at June 30, 2026
$10,140 $5,227 $1,417 $73 $15,126 $2,700 $55 $34,738 
Balance at April 1, 2025
$12,055 $4,192 $2,643 $46 $9,581 $3,379 $46 $31,942 
Charge-offs— — — — (46)— (74)(120)
Recoveries— 1 — — 9 — 1 11 
Provision (reversal) for credit losses on loans(1,299)1,013 350 33 1,671 (115)68 1,721 
Balance at June 30, 2025
$10,756 $5,206 $2,993 $79 $11,215 $3,264 $41 $33,554 
($ in thousands)Commercial PropertyBusiness PropertyMultifamilyConstructionCommercial and IndustrialResidential MortgageOther ConsumerTotal
Balance at January 1, 2026
$9,348 $4,347 $1,282 $123 $15,357 $2,871 $53 $33,381 
Charge-offs— — — — (92)— (3)(95)
Recoveries— 2 — — 34 — — 36 
Provision (reversal) for credit losses on loans792 878 135 (50)(173)(171)5 1,416 
Balance at June 30, 2026
$10,140 $5,227 $1,417 $73 $15,126 $2,700 $55 $34,738 
Balance at January 1, 2025
$12,923 $3,967 $2,371 $81 $8,713 $2,506 $67 $30,628 
Charge-offs— — — — (397)— (76)(473)
Recoveries— 2 — — 80 — 5 87 
Provision (reversal) for credit losses on loans(2,167)1,237 622 (2)2,819 758 45 3,312 
Balance at June 30, 2025
$10,756 $5,206 $2,993 $79 $11,215 $3,264 $41 $33,554 
Schedule of Credit Quality Indicators
The following table presents the Company’s loans held-for-investment by loan segment, internal risk ratings and vintage year as of June 30, 2026 and gross write offs for the six months ended June 30, 2026. The vintage year is the year of origination, renewal or major modification. Revolving loans that are converted to term loans presented in the table below are excluded from the Term Loans by Origination Year columns.
Term Loans by Origination YearRevolving LoansRevolving Loans Converted to Term
($ in thousands)20262025202420232022PriorTotal
June 30, 2026
Commercial Real Estate:
Commercial property
Pass$137,386 $307,855 $173,803 $135,287 $192,580 $156,976 $4,581 $8,928 $1,117,396 
Special mention— — — — 919 — — — 919 
Substandard— — — 110 337 1,409 — — 1,856 
Doubtful— — — — — — — — — 
Total$137,386 $307,855 $173,803 $135,397 $193,836 $158,385 $4,581 $8,928 $1,120,171 
Year-to-date period gross write offs
$— $— $— $— $— $— $— $— $— 
Business property
Pass$77,914 $170,412 $87,335 $87,264 $73,634 $164,141 $7,404 $22,232 $690,336 
Special mention— — — — — 5,493 — — 5,493 
Substandard— — — — 948 850 — — 1,798 
Doubtful— — — — — — — — — 
Total$77,914 $170,412 $87,335 $87,264 $74,582 $170,484 $7,404 $22,232 $697,627 
Year-to-date period gross write offs
$— $— $— $— $— $— $— $— $— 
Multifamily
Pass$32,442 $37,094 $30,199 $13,635 $37,664 $49,593 $1,000 $7,170 $208,797 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Total$32,442 $37,094 $30,199 $13,635 $37,664 $49,593 $1,000 $7,170 $208,797 
Year-to-date period gross write offs
$— $— $— $— $— $— $— $— $— 
Construction
Pass$— $— $2,102 $— $9,019 $— $— $— $11,121 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Total$— $— $2,102 $— $9,019 $— $— $— $11,121 
Year-to-date period gross write offs
$— $— $— $— $— $— $— $— $— 
Term Loans by Origination YearRevolving LoansRevolving Loans Converted to Term
($ in thousands)20262025202420232022PriorTotal
June 30, 2026 (Continued)
Commercial and Industrial
Pass$15,201 $25,028 $30,059 $25,426 $12,232 $8,498 $328,200 $48,881 $493,525 
Special mention— — — — — — — — — 
Substandard— — 2 5 235 42 1,135 — 1,419 
Doubtful— — — — — — — — — 
Total$15,201 $25,028 $30,061 $25,431 $12,467 $8,540 $329,335 $48,881 $494,944 
Year-to-date period gross write offs
$— $— $— $— $— $92 $— $— $92 
Consumer
Residential mortgage
Pass$24,537 $57,378 $25,279 $44,624 $130,437 $105,713 $— $— $387,968 
Special mention— — — — — — — — — 
Substandard— — — 4,691 — 755 — — 5,446 
Doubtful— — — — — — — — — 
Total$24,537 $57,378 $25,279 $49,315 $130,437 $106,468 $— $— $393,414 
Year-to-date period gross write offs
$— $— $— $— $— $— $— $— $— 
Other consumer
Pass$246 $— $— $1,214 $1,150 $118 $3,211 $— $5,939 
Special mention— — — — — — — — — 
Substandard— — — 3 3 — — — 6 
Doubtful— — — — — — — — — 
Total$246 $— $— $1,217 $1,153 $118 $3,211 $— $5,945 
Year-to-date period gross write offs
$— $— $— $— $3 $— $— $— $3 
Total loans held-for-investment
Pass$287,726 $597,767 $348,777 $307,450 $456,716 $485,039 $344,396 $87,211 $2,915,082 
Special mention— — — — 919 5,493 — — 6,412 
Substandard— — 2 4,809 1,523 3,056 1,135 — 10,525 
Doubtful— — — — — — — — — 
Total$287,726 $597,767 $348,779 $312,259 $459,158 $493,588 $345,531 $87,211 $2,932,019 
Year-to-date period gross write offs
$— $— $— $— $3 $92 $— $— $95 
The following table presents the Company’s loans held-for-investment by loan segment, internal risk ratings and vintage year as of December 31, 2025. The vintage year is the year of origination, renewal or major modification. Revolving loans that are converted to term loans presented in the table below are excluded from term loans by vintage year columns.
Term Loans by Origination YearRevolving LoansRevolving Loans Converted to Term
($ in thousands)20252024202320222021PriorTotal
December 31, 2025
Commercial Real Estate:
Commercial property
Pass$312,704 $176,824 $138,914 $203,311 $118,797 $96,119 $14,306 $7,563 $1,068,538 
Special mention— — — 923 — — — — 923 
Substandard— — 116 357 229 1,233 — — 1,935 
Doubtful— — — — — — — — — 
Total$312,704 $176,824 $139,030 $204,591 $119,026 $97,352 $14,306 $7,563 $1,071,396 
Year-to-date period gross write offs
$— $— $— $— $— $— $— $— $— 
Business property
Pass$172,213 $89,840 $94,519 $77,382 $116,412 $71,607 $5,530 $3,640 $631,143 
Special mention— — — — 5,512 — — — 5,512 
Substandard— — — 442 377 589 — — 1,408 
Doubtful— — — — — — — — — 
Total$172,213 $89,840 $94,519 $77,824 $122,301 $72,196 $5,530 $3,640 $638,063 
Year-to-date period gross write offs
$— $— $— $307 $— $— $— $— $307 
Multifamily
Pass$38,551 $30,423 $13,793 $38,482 $37,071 $16,259 $1,000 $— $175,579 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Total$38,551 $30,423 $13,793 $38,482 $37,071 $16,259 $1,000 $— $175,579 
Year-to-date period gross write offs
$— $— $— $— $— $— $— $— $— 
Construction
Pass$— $503 $— $18,058 $— $— $— $— $18,561 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Total$— $503 $— $18,058 $— $— $— $— $18,561 
Year-to-date period gross write offs
$— $— $— $— $— $— $— $— $— 
Term Loans by Origination YearRevolving LoansRevolving Loans Converted to Term
($ in thousands)20252024202320222021PriorTotal
December 31, 2025 (Continued)
Commercial and Industrial
Pass$30,047 $35,290 $28,031 $15,873 $4,753 $6,413 $336,748 $51,099 $508,254 
Special mention— — — — — — — — — 
Substandard— — — 247 — 161 — — 408 
Doubtful— — — — — — — — — 
Total$30,047 $35,290 $28,031 $16,120 $4,753 $6,574 $336,748 $51,099 $508,662 
Year-to-date period gross write offs
$247 $202 $125 $— $149 $196 $— $— $919 
Consumer
Residential mortgage
Pass$62,595 $29,032 $52,641 $137,472 $67,078 $47,116 $— $— $395,934 
Special mention— — — — — — — — — 
Substandard— — 4,689 — — 714 — — 5,403 
Doubtful— — — — — — — — — 
Total$62,595 $29,032 $57,330 $137,472 $67,078 $47,830 $— $— $401,337 
Year-to-date period gross write offs
$— $— $— $— $— $— $— $— $— 
Other consumer
Pass$262 $— $1,788 $1,932 $429 $39 $2,347 $— $6,797 
Special mention— — — — — — — — — 
Substandard— — — 5 — — — — 5 
Doubtful— — — — — — — — — 
Total$262 $— $1,788 $1,937 $429 $39 $2,347 $— $6,802 
Year-to-date period gross write offs
$— $77 $1 $— $4 $— $— $— $82 
Total loans held-for-investment
Pass$616,372 $361,912 $329,686 $492,510 $344,540 $237,553 $359,931 $62,302 $2,804,806 
Special mention— — — 923 5,512 — — — 6,435 
Substandard— — 4,805 1,051 606 2,697 — — 9,159 
Doubtful— — — — — — — — — 
Total$616,372 $361,912 $334,491 $494,484 $350,658 $240,250 $359,931 $62,302 $2,820,400 
Year-to-date period gross write offs
$247 $279 $126 $307 $153 $196 $— $— $1,308 
Schedule of Nonaccrual Loans
The following table presents the loans on nonaccrual status by loan segments as of the dates indicated:
($ in thousands)Total Nonaccrual LoansNonaccrual Loans with ACLACL on Nonaccrual LoansCollateral Dependent Nonaccrual LoansACL on Collateral Dependent Nonaccrual Loans
June 30, 2026
Commercial real estate:
Commercial property
$1,331 $— $— $1,331 $— 
Business property1,330 616 104 1,330 104 
Total commercial real estate2,661 616 104 2,661 104 
Commercial and industrial607 — — 607 — 
Consumer:
Residential mortgage5,446 — — 5,446 — 
Other consumer6 6 — — — 
Total consumer5,452 6 — 5,446 — 
Total
$8,720 $622 $104 $8,714 $104 
December 31, 2025
Commercial real estate:
Commercial property
$1,403 $— $— $1,403 $— 
Business property938 642 134 938 134 
Total commercial real estate2,341 642 134 2,341 134 
Commercial and industrial161 71 72 161 72 
Consumer:
Residential mortgage5,403 — — 5,403 — 
Other consumer5 5 — — — 
Total consumer5,408 5 — 5,403 — 
Total
$7,910 $718 $206 $7,905 $206 
Schedule of Collateral Dependent Loans The following table presents the collateral dependent loans by loan segments as of the dates indicated:
($ in thousands)Hotel / MotelRestaurantRetailSingle Family ResidentialOtherTotal
June 30, 2026
Commercial real estate:
Commercial property$1,331 $— $— $— $— $1,331 
Business property— 884 415 — 31 1,330 
Total commercial real estate1,331 884 415 — 31 2,661 
Commercial and industrial6 566 — 35 — 607 
Consumer:
Residential mortgage— — — 5,446 — 5,446 
Total consumer— — — 5,446 — 5,446 
Total$1,337 $1,460 $415 $5,471 $31 $8,714 
December 31, 2025
Commercial real estate:
Commercial property$1,403 $— $— $— $— $1,403 
Business property— 377 529 — 32 938 
Total commercial real estate1,403 377 529 — 32 2,341 
Commercial and industrial8 — — 82 71 161 
Consumer:
Residential mortgage— — — 5,403 — 5,403 
Total consumer— — — 5,403 — 5,403 
Total$1,411 $377 $529 $5,485 $103 $7,905 
Schedule of Past Due Loans
The following table presents the aging of past due in accruing loans and nonaccrual loans by loan segments as of the dates indicated:
Still AccruingNonaccrual
($ in thousands)30 to 59 Days Past Due60 to 89 Days Past Due90 or More Days Past DueTotal30 to 59 Days Past Due60 to 89 Days Past Due90 or More Days Past DueTotalTotal Loans Past Due
June 30, 2026
Commercial real estate:
Commercial property$— $— $— $— $— $— $502 $502 $502 
Business property70 — — 70 415 — 408 823 893 
Total commercial real estate70 — — 70 415 — 910 1,325 1,395 
Commercial and industrial— 55 — 55 — — 583 583 638 
Consumer:
Residential mortgage255 — — 255 — 676 4,770 5,446 5,701 
Other consumer14 — — 14 — — 1 1 15 
Total consumer269 — — 269 — 676 4,771 5,447 5,716 
Total$339 $55 $— $394 $415 $676 $6,264 $7,355 $7,749 
December 31, 2025
Commercial real estate:
Commercial property$— $— $— $— $— $— $524 $524 $524 
Business property140 — — 140 86 178 230 494 634 
Total commercial real estate140 — — 140 86 178 754 1,018 1,158 
Commercial and industrial21 5 — 26 — — 78 78 104 
Consumer:
Residential mortgage674 — — 674 2,269 273 2,862 5,404 6,078 
Other consumer108 7 — 115 — — — — 115 
Total consumer782 7 — 789 2,269 273 2,862 5,404 6,193 
Total$943 $12 $— $955 $2,355 $451 $3,694 $6,500 $7,455 
Schedule of Loan Modifications
The following tables present loans that the borrowers were both experiencing financial difficulty and modified during the period indicated by loan segments and modification type:
Three Months Ended
($ in thousands)
Combination of Other-Than-Insignificant Payment Delay and Term Extension
TotalPercentage to Each Loan Segment
June 30, 2026
Total$— $— — %
June 30, 2025
Commercial and industrial$52 $52 0.1 %
Total$52 $52 0.1 %
Six Months Ended
($ in thousands)
Combination of Other-Than-Insignificant Payment Delay and Term Extension
TotalPercentage to Each Loan Segment
June 30, 2026
Total$— $— — %
June 30, 2025
Commercial and industrial52 52 0.1 %
Total$52 $52 0.1 %
The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the periods indicated:
Three Months Ended
Six Months Ended
Combination of Other-Than-Insignificant Payment Delay and Term Extension
Combination of Other-Than-Insignificant Payment Delay and Term Extension
June 30, 2025
Commercial and industrial
6-month interest-only payment and 6-month term extension
6-month interest-only payment and 6-month term extension
Schedule of Loan Modifications Past Due
The following table presents the performance of loans that the borrowers were both experiencing financial difficulty and modified in the last 12 months:
($ in thousands)30 to 59 Days Past Due60 to 89 Days Past Due90 or More Days Past DueTotal
June 30, 2026
Total$— $— $— $— 
December 31, 2025
Total$— $— $— $— 
Schedule of Loans Held-for-Investment Transferred to Loans Held-for-Sale
The following table presents a summary of loans that were transferred from loans held-for-investment to loans held-for-sale for the periods indicated:
Three Months Ended June 30,
Six Months Ended June 30,
($ in thousands)
2026
2025
2026
2025
Commercial real estate:
Commercial property
$— $— $1,091 $— 
Total commercial real estate— — 1,091 — 
Total$— $— $1,091 $— 
Schedule of Loans Held-for-Sale
The following table presents a composition of loans held-for-sale as of the dates indicated:
($ in thousands)
June 30, 2026
December 31, 2025
Commercial real estate:
Commercial property$— $3,750 
Business property1,500 2,734 
Total commercial real estate1,500 6,484 
Commercial and industrial1,437 5,593 
Total$2,937 $12,077