NOTE 3 - LOANS/LEASES RECEIVABLE

6 Months Ended

Jun. 30, 2026

NOTE 3 – LOANS/LEASES RECEIVABLE

The composition of the loan/lease portfolio as of June 30, 2026 and December 31, 2025 is presented as follows:


		June 30, 2026		December 31, 2025

		(dollars in thousands)
C&I:
C&I - revolving		$	407,419	$	384,656
C&I - other *			1,209,913		1,318,866
			1,617,332		1,703,522

CRE - owner occupied			589,928		577,352
CRE - non-owner occupied			966,873		1,036,655
Construction and land development			1,205,553		1,308,422
Multi-family			1,871,240		1,769,331
Direct financing leases**			6,382		9,533
1-4 family real estate***			613,664		603,683
Consumer			161,958		158,457
			7,032,930		7,166,955
Allowance for credit losses			(87,185)		(90,127)
		$	6,945,745	$	7,076,828
Direct financing leases:
Net minimum lease payments to be received		$	6,808	$	10,076
Estimated unguaranteed residual values of leased assets			—		165
Unearned lease/residual income			(426)		(708)
			6,382		9,533
Less allowance for credit losses			(212)		(311)
		$	6,170	$	9,222

* Includes equipment financing agreements outstanding through m2, totaling $128.7 million and $178.1 million as of June 30, 2026 and December 31, 2025, respectively.

** Management performs an evaluation of the estimated unguaranteed residual values of leased assets on an annual basis, at a minimum. The evaluation consists of discussions with reputable and current vendors, which is combined with management's expertise and understanding of the current states of particular industries to determine informal valuations of the equipment. As necessary and where available, management will utilize valuations by independent appraisers. The majority of leases with residual values contain a lease options rider, which requires the lessee to pay the residual value directly, finance the payment of the residual value, or extend the lease term to pay the residual value. In these cases, the residual value is protected and the risk of loss is minimal.

*** Includes residential real estate loans held for sale totaling $3.7 million and $1.4 million as of June 30, 2026 and December 31, 2025, respectively.

Accrued interest on loans, which is excluded from the amortized cost of loans, totaled $29.9 million and $32.8 million at June 30, 2026 and December 31, 2025, respectively, and was included in Other Assets on the consolidated balance sheets.

The aging of the loan/lease portfolio by classes of loans/leases as of June 30, 2026 and December 31, 2025 is presented as follows and all loans held for sale are current:


		As of June 30, 2026
											Accruing Past
					30-59 Days			60-89 Days			Due 90 Days or			Nonaccrual
Classes of Loans/Leases		Current			Past Due			Past Due			More			Loans/Leases			Total

		(dollars in thousands)
C&I:
C&I - revolving		$	406,582		$	—		$	15		$	—		$	822	$		407,419
C&I - other			1,182,150			3,096			1,055			1			23,611			1,209,913
CRE - owner occupied			587,351			380			—			—			2,197			589,928
CRE - non-owner occupied			963,856			—			—			—			3,017			966,873
Construction and land development			1,200,631			804			—			—			4,118			1,205,553
Multi-family			1,868,907			—			—			—			2,333			1,871,240
Direct financing leases			6,323			—			20			—			39			6,382
1-4 family real estate			608,946			—			1,997			—			2,721			613,664
Consumer			161,443			234			—			—			281			161,958
		$	6,986,189		$	4,514		$	3,087		$	1		$	39,139		$	7,032,930

As a percentage of total loan/lease portfolio			99.34	%		0.06	%		0.04	%		0.00	%		0.56	%		100.00	%


		As of December 31, 2025
											Accruing Past
					30-59 Days			60-89 Days			Due 90 Days or			Nonaccrual
Classes of Loans/Leases		Current			Past Due			Past Due			More			Loans/Leases			Total

		(dollars in thousands)
C&I
C&I - revolving		$	363,820		$	19,972		$	—		$	—		$	864	$		384,656
C&I - other			1,284,558			3,755			1,915			3			28,635			1,318,866
CRE - owner occupied			575,669			1,277			—			—			406			577,352
CRE - non-owner occupied			1,033,991			—			—			—			2,664			1,036,655
Construction and land development			1,304,238			—			66			—			4,118			1,308,422
Multi-family			1,735,026			31,972			—			—			2,333			1,769,331
Direct financing leases			8,346			1,133			—			—			54			9,533
1-4 family real estate			597,924			2,760			192			82			2,725			603,683
Consumer			157,962			24			58			—			413			158,457
		$	7,061,534		$	60,893		$	2,231		$	85		$	42,212		$	7,166,955

As a percentage of total loan/lease portfolio			98.53	%		0.85	%		0.03	%		0.00	%		0.59	%		100.00	%

NPLs by classes of loans/leases as of June 30, 2026 and December 31, 2025 are presented as follows and all loans held for sale are performing and not included in this table:


		As of June 30, 2026
		Accruing Past			Nonaccrual			Nonaccrual
		Due 90 Days or			Loans/Leases			Loans/Leases						Percentage of
Classes of Loans/Leases		More			with an ACL			without an ACL			Total NPLs			Total NPLs

		(dollars in thousands)
C&I:
C&I - revolving		$	—		$	—		$	822		$	822		2	%
C&I - other			1			15,712			7,899			23,612		60
CRE - owner occupied			—			581			1,616			2,197		6
CRE - non-owner occupied			—			3,017			—			3,017		8
Construction and land development			—			4,118			—			4,118		10
Multi-family			—			2,333			—			2,333		6
Direct financing leases			—			39			—			39		-
1-4 family real estate			—			2,236			485			2,721		7
Consumer			—			281			—			281		1
		$	1		$	28,317		$	10,822		$	39,140		100	%


		As of December 31, 2025
		Accruing Past			Nonaccrual			Nonaccrual
		Due 90 Days or			Loans/Leases			Loans/Leases						Percentage of
Classes of Loans/Leases		More			with an ACL			without an ACL			Total NPLs			Total NPLs

			(dollars in thousands)
C&I:
C&I - revolving		$	—		$	—		$	864		$	864		2	%
C&I - other			3			19,678			8,957			28,638		68
CRE - owner occupied			—			406			—			406		1
CRE - non-owner occupied			—			2,664			—			2,664		6
Construction and land development			—			4,118			—			4,118		10
Multi-family			—			2,333			—			2,333		5
Direct financing leases			—			54			—			54		0
1-4 family real estate			82			2,409			316			2,807		7
Consumer			—			413			—			413		1
		$	85		$	32,075		$	10,137		$	42,297		100	%

The Company did not recognize any interest income on nonaccrual loans during the three and six months ended June 30, 2026 or 2025.


		Three Months Ended June 30, 2026
						CRE		CRE		Construction				1-4
		C&I -		C&I -		Owner		Non-Owner		and Land		Multi-		Family
		Revolving		Other*		Occupied		Occupied		Development		Family		Real Estate			Consumer			Total

		(dollars in thousands)

Balance, beginning		$	3,726	$	23,007	$	6,519	$	11,725	$	15,415	$	17,908	$	5,415		$	1,744		$	85,459
Change in ACL for writedown of LHFS to fair value			—				—		—		—		374		—						374
Provision			204		1,661		5,856		(1,180)		(2,030)		549		(358)			(50)			4,652
Charge-offs			—		(3,563)		—		—		—		—		—			(10)			(3,573)
Recoveries			37		229		—		—		—		—		—			7			273
Balance, ending		$	3,967	$	21,334	$	12,375	$	10,545	$	13,385	$	18,831	$	5,057		$	1,691		$	87,185


		Six Months Ended June 30, 2026
						CRE		CRE		Construction				1-4
		C&I -		C&I -		Owner		Non-Owner		and Land		Multi-		Family
		Revolving		Other**		Occupied		Occupied		Development		Family		Real Estate			Consumer			Total

		(dollars in thousands)

Balance, beginning		$	3,747	$	27,684	$	6,324	$	11,457	$	15,397	$	18,860	$	4,986		$	1,672		$	90,127
Change in ACL for the transfer of loans to LHFS			—		—		—		—		—		(3,076)		—			—			(3,076)
Provision			147		980		5,964		(912)		(2,012)		3,047		80			46			7,340
Charge-offs			(3)		(7,964)		—		—		—		—		(9)			(44)			(8,020)
Recoveries			76		634		87		—		—		—		—			17			814
Balance, ending		$	3,967	$	21,334	$	12,375	$	10,545	$	13,385	$	18,831	$	5,057		$	1,691		$	87,185

* Included within the C&I – Other column are ACL on leases with a beginning balance of $263 thousand, negative provision of $46 thousand, charge-offs of $5 thousand and no recoveries. The ACL on leases was $212 thousand as of June 30, 2026.

** included within the C&I – Other column are ACL on leases with a beginning balance of $311 thousand, negative provision of $320 thousand, charge -offs of $5 thousand and recoveries of $226 thousand. The ACL on leases was $212 thousand as of June 30, 2026.


		Three Months Ended June 30, 2025
						CRE		CRE		Construction				1-4
		C&I -		C&I -		Owner		Non-Owner		and Land		Multi-		Family
		Revolving		Other*		Occupied		Occupied		Development		Family		Real Estate		Consumer			Total

		(dollars in thousands)

Balance, beginning		$	3,952	$	31,845	$	7,141	$	11,061	$	16,760	$	12,968	$	5,095	$	1,532		$	90,354
Provision			(155)		3,972		(400)		(445)		1,161		574		(115)		75			4,667
Charge-offs			—		(6,470)		—		10		—		—		—		(30)			(6,490)
Recoveries			—		175		—		—		24		—		—		2			201
Balance, ending		$	3,797	$	29,522	$	6,741	$	10,626	$	17,945	$	13,542	$	4,980	$	1,579		$	88,732


		Six Months Ended June 30, 2025
						CRE		CRE		Construction				1-4
		C&I -		C&I -		Owner		Non-Owner		and Land		Multi-		Family
		Revolving		Other**		Occupied		Occupied		Development		Family		Real Estate		Consumer		Total

		(dollars in thousands)

Balance, beginning		$	3,856	$	34,002	$	7,147	$	11,137	$	15,099	$	12,173	$	4,934	$	1,493	$	89,841
Provisions			(59)		6,071		(406)		(521)		2,763		1,369		72		121		9,410
Charge-offs			—		(11,348)		—		10		—		—		(26)		(70)		(11,434)
Recoveries			—		797		—		—		83		—		—		35		915
Balance, ending		$	3,797	$	29,522	$	6,741	$	10,626	$	17,945	$	13,542	$	4,980	$	1,579	$	88,732

* Included within the C&I – Other column are ACL on leases with a beginning balance of $485 thousand, negative provision of $33 thousand, charge-offs of $30 thousand and recoveries of $1 thousand. The ACL on leases was $423 thousand as of June 30, 2025.

** Included within the C&I – Other column are ACL on leases with a beginning balance of $580 thousand, provision of $54 thousand, charge-offs of $221 thousand and recoveries of $10 thousand. The ACL on leases was $423 thousand as of June 30, 2025.

The composition of the ACL on loans/leases held for investment by portfolio segment based on evaluation method as of June 30, 2026 and December 31, 2025 are as follows:


		As of June 30, 2026
		Amortized Cost of Loans Receivable							Allowance for Credit Losses
		Individually			Collectively				Individually			Collectively
		Evaluated for			Evaluated for				Evaluated for			Evaluated for
		Credit Losses			Credit Losses		Total		Credit Losses			Credit Losses		Total

		(dollars in thousands)
C&I :
C&I - revolving		$	6,334		$	401,085	$	407,419	$	247		$	3,720	$	3,967
C&I - other*			27,805			1,188,490		1,216,295		5,774			15,560		21,334
			34,139			1,589,575		1,623,714		6,021			19,280		25,301
CRE - owner occupied			25,780			564,148		589,928		7,601			4,774		12,375
CRE - non-owner occupied			3,406			963,467		966,873		1,711			8,834		10,545
Construction and land development			4,483			1,201,070		1,205,553		1,663			11,722		13,385
Multi-family			4,584			1,866,656		1,871,240		886			17,945		18,831
1-4 family real estate			3,225			606,708		609,933		296			4,761		5,057
Consumer			319			161,639		161,958		38			1,653		1,691
		$	75,936		$	6,953,263	$	7,029,199	$	18,216		$	68,969	$	87,185

* Included within the C&I – other category are leases individually evaluated of $39 thousand with a related allowance for credit losses of $12 thousand and leases collectively evaluated of $6.3 million with a related allowance for credit losses of $202 thousand as of June 30, 2026.


		As of December 31, 2025
		Amortized Cost of Loans Receivable							Allowance for Credit Losses
		Individually			Collectively				Individually			Collectively
		Evaluated for			Evaluated for				Evaluated for			Evaluated for
		Credit Losses			Credit Losses		Total		Credit Losses			Credit Losses		Total

		(dollars in thousands)
C&I :
C&I - revolving		$	5,726		$	378,930	$	384,656	$	39		$	3,708	$	3,747
C&I - other*			30,579			1,297,820		1,328,399		6,566			21,118		27,684
			36,305			1,676,750		1,713,055		6,605			24,826		31,431
CRE - owner occupied			23,711			553,641		577,352		1,464			4,860		6,324
CRE - non-owner occupied			3,419			1,033,236		1,036,655		1,642			9,815		11,457
Construction and land development			4,485			1,303,937		1,308,422		1,664			13,733		15,397
Multi-family			4,619			1,764,712		1,769,331		429			18,431		18,860
1-4 family real estate			1,966			600,288		602,254		300			4,686		4,986
Consumer			454			158,003		158,457		50			1,622		1,672
		$	74,959		$	7,090,567	$	7,165,526	$	12,154		$	77,973	$	90,127

* Included within the C&I – other category are leases individually evaluated of $54 thousand with a related allowance for credit losses of $16 thousand and leases collectively evaluated of $9.5 million with a related allowance for credit losses of $295 thousand as of December 31, 2025.

The following table presents the amortized cost basis of collateral dependent loans, by the primary collateral type, which are individually evaluated to determine expected credit losses as of June 30, 2026 and December 31, 2025:



		As of June 30, 2026
								Non
		Commercial			Owner-occupied			Owner-Occupied		Owner Occupied
		Assets			CRE			Real Estate		Real Estate		Securities		Equipment		Other		Total

		(dollars in thousands)
C & I:
C&I - revolving		$	6,237		$	—		$	97	$	—	$	—	$	—	$	—	$	6,334
C&I - other*			8,239			945			139		—		4,760		6,301		7,421		27,805
			14,476			945			236		—		4,760		6,301		7,421		34,139
CRE - owner occupied			—			25,150			—		630		—		—		—		25,780
CRE - non-owner occupied			—			—			3,406		—		—		—		—		3,406
Construction and land development			—			—			4,483		—		—		—		—		4,483
Multi-family			—			—			4,584		—		—		—		—		4,584
1-4 family real estate			—			—			343		2,882		—		—		—		3,225
Consumer			—			—			—		280		—		—		39		319
		$	14,476		$	26,095		$	13,052	$	3,792	$	4,760	$	6,301	$	7,460	$	75,936

* Included within the C&I – other category are leases individually evaluated of $39 thousand with primary collateral of equipment.


		As of December 31, 2025
								Non
		Commercial			Owner-occupied			Owner-Occupied		Owner Occupied
		Assets			CRE			Real Estate		Real Estate		Securities		Equipment		Other		Total

		(dollars in thousands)
C & I:
C&I - revolving		$	5,487		$	—		$	239	$	—	$	—	$	—	$	—	$	5,726
C&I - other*			7,001			—			—		—		4,760		7,610		11,208		30,579
			12,488			—			239		—		4,760		7,610		11,208		36,305
CRE - owner occupied			—			23,065			—		646		—		—		—		23,711
CRE - non-owner occupied			—			—			3,419		—		—		—		—		3,419
Construction and land development			—			—			4,485		—		—		—		—		4,485
Multi-family			—			—			4,619		—		—		—		—		4,619
1-4 family real estate			—			—			37		3,358		—		—		—		3,395
Consumer			—			—			—		444		—		—		10		454
		$	12,488		$	23,065		$	12,799	$	4,448	$	4,760	$	7,610	$	11,218	$	76,388

* Included within the C&I – other category are leases individually evaluated of $54 thousand with primary collateral of equipment.

For all loans except direct financing leases and equipment financing agreements, the Company’s credit quality indicator consists of internally assigned risk ratings. Each such loan is assigned a risk rating upon origination. The risk rating is reviewed every 15 months, at a minimum, and on an as-needed basis depending on the specific circumstances of the loan.

For certain C&I loans (including equipment financing agreements and direct financing leases), the Company’s credit quality indicator is performance determined by delinquency status. Delinquency status is updated daily by the Company’s loan system.

The following tables show the credit quality indicator of loans by class of receivable and year of origination as of June 30, 2026, and all loans held for sale are included in the pass rated line:


		As of June 30, 2026
		Term Loans
		Amortized Cost Basis by Origination Year
																		Revolving
																		Loans
Internally Assigned																		Amortized
Risk Rating		2026			2025			2024			2023			2022		Prior		Cost Basis		Total

		(dollars in thousands)
C&I - revolving
Pass		$	—		$	—		$	—		$	—		$	—	$	—	$	375,549	$	375,549
Special Mention			—			—			—			—			—		—		25,585		25,585
Substandard			—			—			—			—			—		—		6,285		6,285
Doubtful			—			—			—			—			—		—		—		—
Total C&I - revolving		$	—		$	—		$	—		$	—		$	—	$	—	$	407,419	$	407,419

C&I - other
Pass		$	245,027		$	236,278		$	99,778		$	194,471		$	114,183	$	152,573	$	—	$	1,042,310
Special Mention			10,466			3,648			1,208			122			496		2,476		—		18,416
Substandard			2,412			5,181			6,771			307			794		5,040		—		20,505
Doubtful			—			—			—			—			—		—		—		—
Total C&I - other		$	257,905		$	245,107		$	107,757		$	194,900		$	115,473	$	160,089	$	—	$	1,081,231

CRE - owner occupied
Pass		$	88,973		$	96,044		$	53,119		$	74,881		$	74,901	$	154,848	$	10,728	$	553,494
Special Mention			8,191			—			—			169			385		5,703		—		14,448
Substandard			747			1,403			—			433			2,100		17,303		—		21,986
Doubtful			—			—			—			—			—		—		—		—
Total CRE - owner occupied		$	97,911		$	97,447		$	53,119		$	75,483		$	77,386	$	177,854	$	10,728	$	589,928

CRE - non-owner occupied
Pass		$	97,633		$	228,518		$	122,641		$	105,044		$	186,141	$	168,523	$	46,070	$	954,570
Special Mention			2,357			34			993			—			5,304		209		—		8,897
Substandard			—			77			—			2,664			312		353		—		3,406
Doubtful			—			—			—			—			—		—		—		—
Total CRE - non-owner occupied		$	99,990		$	228,629		$	123,634		$	107,708		$	191,757	$	169,085	$	46,070	$	966,873

Construction and land development
Pass		$	208,094		$	415,189		$	229,278		$	268,594		$	44,896	$	4,419	$	30,787	$	1,201,257
Special Mention			67			—			20			—			—		—		—		87
Substandard			—			—			4,118			91			—		—		—		4,209
Doubtful			—			—			—			—			—		—		—		—
Total Construction and land development		$	208,161		$	415,189		$	233,416		$	268,685		$	44,896	$	4,419	$	30,787	$	1,205,553

Multi-family
Pass		$	162,228		$	434,456		$	236,248		$	223,322		$	318,222	$	491,182	$	998	$	1,866,656
Special Mention			—			—			—			—			—		—		—		—
Substandard			2,244			2,333			—			—			—		7		—		4,584
Doubtful			—			—			—			—			—		—		—		—
Total Multi-family		$	164,472		$	436,789		$	236,248		$	223,322		$	318,222	$	491,189	$	998	$	1,871,240

1-4 family real estate
Pass		$	88,163		$	106,900		$	81,350		$	79,575		$	66,697	$	180,635	$	4,909	$	608,229
Special Mention			47			1,535			—			—			156		472		—		2,210
Substandard			—			—			406			683			378		1,731		27		3,225
Doubtful			—			—			—			—			—		—		—		—
Total 1-4 family real estate		$	88,210		$	108,435		$	81,756		$	80,258		$	67,231	$	182,838	$	4,936	$	613,664

Consumer
Pass		$	6,828		$	10,206		$	3,221		$	3,071		$	2,014	$	1,449	$	134,787	$	161,576
Special Mention			—			—			—			—			—		—		63		63
Substandard			—			9			20			71			166		—		53		319
Doubtful			—			—			—			—			—		—		—		—
Total Consumer		$	6,828		$	10,215		$	3,241		$	3,142		$	2,180	$	1,449	$	134,903	$	161,958

Total		$	923,477		$	1,541,811		$	839,171		$	953,498		$	817,145	$	1,186,923	$	635,841	$	6,897,866


	As of June 30, 2026
	Term Loans
	Amortized Cost Basis by Origination Year												Revolving
													Loans
													Amortized
Delinquency Status *	2026		2025		2024		2023		2022		Prior		Cost Basis		Total

	(dollars in thousands)
C&I - other
Performing	$	—	$	—	$	59,859	$	42,565	$	17,469	$	2,773	$	—	$	122,666
Nonperforming		—		—		926		3,127		1,475		488		—		6,016
Total C&I - other	$	—	$	—	$	60,785	$	45,692	$	18,944	$	3,261	$	—	$	128,682

Direct financing leases
Performing	$	—	$	80	$	746	$	3,311	$	2,088	$	118	$	—	$	6,343
Nonperforming		—		—		—		—		38		1		—		39
Total Direct financing leases	$	—	$	80	$	746	$	3,311	$	2,126	$	119	$	—	$	6,382

Total	$	—	$	80	$	61,531	$	49,003	$	21,070	$	3,380	$	—	$	135,064

* Performing = loans/leases accruing and less than 90 days past due. Nonperforming = loans/leases on nonaccrual and accruing loans/leases that are greater than or equal to 90 days past due.

The following tables show the credit quality indicator of loans by class of receivable and year of origination as of December 31, 2025, and all loans held for sale are included in the pass rated line:


		As of December 31, 2025
		Term Loans
		Amortized Cost Basis by Origination Year
																		Revolving
																		Loans
Internally Assigned																		Amortized
Risk Rating		2025			2024			2023			2022			2021		Prior		Cost Basis		Total

		(dollars in thousands)
C&I - revolving
Pass		$	—		$	—		$	—		$	—		$	—	$	—	$	352,945	$	352,945
Special Mention			—			—			—			—			—		—		25,985		25,985
Substandard			—			—			—			—			—		—		5,726		5,726
Doubtful			—			—			—			—			—		—		—		—
Total C&I - revolving		$	—		$	—		$	—		$	—		$	—	$	—	$	384,656	$	384,656

C&I - other
Pass		$	300,721		$	171,903		$	288,321		$	144,943		$	61,157	$	137,083	$	—	$	1,104,128
Special Mention			6,659			1,881			351			1,552			2,285		1,385		—		14,113
Substandard			5,520			11,195			126			755			84		4,838		—		22,518
Doubtful			—			—			—			—			—		—		—		—
Total C&I - other		$	312,900		$	184,979		$	288,798		$	147,250		$	63,526	$	143,306	$	—	$	1,140,759

CRE - owner occupied
Pass		$	109,608		$	55,117		$	80,181		$	81,512		$	91,330	$	110,939	$	11,091	$	539,778
Special Mention			—			—			22			7,523			8,280		1,864		—		17,689
Substandard			1,222			—			111			825			696		17,031		—		19,885
Doubtful			—			—			—			—			—		—		—		—
Total CRE - owner occupied		$	110,830		$	55,117		$	80,314		$	89,860		$	100,306	$	129,834	$	11,091	$	577,352

CRE - non-owner occupied
Pass		$	281,076		$	126,112		$	152,953		$	210,062		$	129,932	$	75,744	$	42,996	$	1,018,875
Special Mention			5,173			1,006			201			5,380			2,387		214		—		14,361
Substandard			78			—			2,664			319			—		358		—		3,419
Doubtful			—			—			—			—			—		—		—		—
Total CRE - non-owner occupied		$	286,327		$	127,118		$	155,818		$	215,761		$	132,319	$	76,316	$	42,996	$	1,036,655

Construction and land development
Pass		$	365,346		$	409,811		$	350,290		$	95,684		$	44,865	$	255	$	37,801	$	1,304,052
Special Mention			—			90			—			—			70		—		—		160
Substandard			—			4,118			92			—			—		—		—		4,210
Doubtful			—			—			—			—			—		—		—		—
Total Construction and land development		$	365,346		$	414,019		$	350,382		$	95,684		$	44,935	$	255	$	37,801	$	1,308,422

Multi-family
Pass		$	500,378		$	145,022		$	225,730		$	350,851		$	187,331	$	355,047	$	354	$	1,764,713
Special Mention			—			—			—			—			—		—		—		—
Substandard			2,333			—			—			—			12		2,273		—		4,618
Doubtful			—			—			—			—			—		—		—		—
Total Multi-family		$	502,711		$	145,022		$	225,730		$	350,851		$	187,343	$	357,320	$	354	$	1,769,331

1-4 family real estate
Pass		$	135,947		$	90,638		$	88,216		$	70,462		$	96,075	$	110,623	$	6,017	$	597,978
Special Mention			1,507			—			354			—			526		6		—		2,393
Substandard			—			286			281			617			636		1,492		—		3,312
Doubtful			—			—			—			—			—		—		—		—
Total 1-4 family real estate		$	137,454		$	90,924		$	88,851		$	71,079		$	97,237	$	112,121	$	6,017	$	603,683

Consumer
Pass		$	15,483		$	4,161		$	3,964		$	2,870		$	698	$	1,426	$	129,337	$	157,939
Special Mention			—			—			—			—			—		—		64		64
Substandard			—			—			220			174			—		—		60		454
Doubtful			—			—			—			—			—		—		—		—
Total Consumer		$	15,483		$	4,161		$	4,184		$	3,044		$	698	$	1,426	$	129,461	$	158,457

Total		$	1,731,051		$	1,021,340		$	1,194,077		$	973,529		$	626,364	$	820,578	$	612,376	$	6,979,315


		As of December 31, 2025
		Term Loans
		Amortized Cost Basis by Origination Year																	Revolving
																			Loans
																			Amortized
Delinquency Status *		2025		2024			2023			2022			2021			Prior			Cost Basis			Total

		(dollars in thousands)
C&I - other
Performing		$	1,001	$	74,605		$	60,869		$	27,697		$	5,885		$	628		$	—		$	170,685
Nonperforming			—		1,135			3,308			2,161			764			54			—			7,422
Total C&I - other		$	1,001	$	75,740		$	64,177		$	29,858		$	6,649		$	682		$	—		$	178,107

Direct financing leases
Performing		$	203	$	665		$	4,883		$	3,043		$	557		$	128		$	—		$	9,479
Nonperforming			—		—			—			49			5			—			—			54
Total Direct financing leases		$	203	$	665		$	4,883		$	3,092		$	562		$	128		$	—		$	9,533

Total		$	1,204	$	76,405		$	69,060		$	32,950		$	7,211		$	810		$	—		$	187,640

* Performing = loans/leases accruing and less than 90 days past due. Nonperforming = loans/leases on nonaccrual and accruing loans/leases that are greater than or equal to 90 days past due.

The following table shows the gross charge-offs of loans and leases by class of receivable and year of origination for the three and six months ended June 30, 2026 and 2025:


		Three Months Ended June 30, 2026																		Six Months Ended June 30, 2026
		Gross Charge-off by Origination Year																		Gross Charge-off by Origination Year
Classes of Loans/Leases		2026			2025			2024			2023			2022		Prior		Total		2025			2024			2023			2022			2021		Prior		Total

		(dollars in thousands)																		(dollars in thousands)
C&I:
C&I - revolving		$	—		$	—		$	—		$	—		$	—	$	—	$	—	$	3		$	—		$	—		$	—		$	—	$	—	$	3
C&I - other			4			—			2,762			563			215		14		3,558		27			—			5,216			1,775			817		124		7,959
CRE - owner occupied			—			—			—			—			—		—		—		—			—			—			—			—		—		—
CRE - non-owner occupied			—			—			—			—			—		—		—		—			—			—			—			—		—		—
Construction and land development			—			—			—			—			—		—		—		—			—			—			—			—		—		—
Multi-family			—			—			—			—			—		—		—		—			—			—			—			—		—		—
Direct financing leases			—			—			—			—			—		5		5		—			—			—			—			—		5		5
1-4 family real estate			—			—			—			—			—		—		—		—			—			—			—			—		9		9
Consumer			—			—			1			—			9		—		10		—			—			17			18			9		—		44
		$	4		$	—		$	2,763		$	563		$	224	$	19	$	3,573	$	30		$	—		$	5,233		$	1,793		$	826	$	138	$	8,020


		Three Months Ended June 30, 2025																		Six Months Ended June 30, 2025
		Gross Charge-off by Origination Year																		Gross Charge-off by Origination Year
Classes of Loans/Leases		2025			2024			2023			2022			2021		Prior		Total		2023			2022			2021			2020			2019		Prior		Total

		(dollars in thousands)																		(dollars in thousands)
C&I:
C&I - revolving		$	—		$	—		$	—		$	—		$	—	$	—	$	—	$	—		$	—		$	—		$	—		$	—	$	—	$	—
C&I - other			500			2,010			1,431			2,064			435		—		6,440		500			3,367			2,671			3,728			751		110		11,127
CRE - owner occupied			—			—			—			—			—		—		—		—			—			—			—			—		—		—
CRE - non-owner occupied			—			—			—			—			—		(10)		(10)		—			—			—			—			—		(10)		(10)
Construction and land development			—			—			—			—			—		—		—		—			—			—			—			—		—		—
Multi-family			—			—			—			—			—		—		—		—			—			—			—			—		—		—
Direct financing leases			—			—			—			30			—		—		30		—			136			39			40			—		6		221
1-4 family real estate			—			—			—			—			—		—		—		—			3			—			23			—		—		26
Consumer			—			13			17			—			—		—		30		—			13			57			—			—		—		70
		$	500		$	2,023		$	1,448		$	2,094		$	435	$	(10)	$	6,490	$	500		$	3,519		$	2,767		$	3,791		$	751	$	106	$	11,434

Any loan and lease modifications to borrowers experiencing financial difficulty during 2025 and 2026 were deemed immaterial.

Changes in the ACL for OBS exposures for the three and six months ended June 30, 2026 and 2025 are presented as follows:


	Three Months Ended						Six Months Ended
	June 30, 2026			June 30, 2025			June 30, 2026			June 30, 2025

	(dollars in thousands)

Balance, beginning	$	6,904		$	7,764		$	7,138		$	8,273
Provisions (credited) to expense		56			(624)			(178)			(1,133)
Balance, ending	$	6,960		$	7,140		$	6,960		$	7,140