v3.26.1
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
Schedule of LHFI Portfolio
The composition of the Company’s LHFI portfolio at June 30, 2026 and December 31, 2025 was as follows:
(dollars in thousands)June 30,
2026		December 31,
2025
Construction and land development$133,828 $138,894 
Real estate - other:
  1-4 family residential139,841 142,399 
  Multifamily residential286,296 324,075 
  Commercial real estate and other1,906,910 1,820,445 
Commercial and industrial625,212 605,859 
Consumer 2,666 2,215 
Loans held for investment (1)
3,094,753 3,033,887 
Allowance for credit losses(34,860)(34,348)
Loans held for investment, net$3,059,893 $2,999,539 
(1)LHFI includes net unearned fees of $2.3 million and $2.8 million and net unearned discounts on acquired loans of $24.8 million and $31.3 million at June 30, 2026 and December 31, 2025, respectively. The Company recognized $3.9 million and $5.6 million of interest accretion of net deferred loan fees and net discounts on acquired loans for the three months ended June 30, 2026 and 2025, respectively. The Company recognized $7.9 million and $11.7 million of interest accretion of net deferred loan fees and net discounts on acquired loans for the six months ended June 30, 2026 and 2025, respectively.
Schedule of Risk Category of LHFI by Class and Origination Year
The risk category of LHFI by class of loans and origination year as of June 30, 2026 follows:

Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisRevolving Loans Amortized Cost Basis
Converted to Term During the Period
(dollars in thousands)20262025202420232022PriorTotal
June 30, 2026
Construction and land development
Pass$17,919 $48,220 $40,352 $9,134 $7,896 $1,957 $— $— $125,478 
Special mention— — — 3,350 — — — — 3,350 
Substandard— — — — 5,000 — — — 5,000 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total construction and land development17,919 48,220 40,352 12,484 12,896 1,957 — — 133,828 
YTD gross charge-offs— — — — — — — — — 
Real estate - other:
1-4 family residential
Pass7,511 771 1,518 1,134 31,460 34,553 57,877 326 135,150 
Special mention— — — — — — — — — 
Substandard— — — — 2,661 2,030 — — 4,691 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total 1-4 family residential7,511 771 1,518 1,134 34,121 36,583 57,877 326 139,841 
YTD gross charge-offs— — — — — — — — — 
Multifamily residential
Pass29,672 54,474 14,368 18,814 41,506 126,023 1,439 — 286,296 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisRevolving Loans Amortized Cost Basis
Converted to Term During the Period
(dollars in thousands)20262025202420232022PriorTotal
June 30, 2026
Loss— — — — — — — — — 
Total multifamily residential29,672 54,474 14,368 18,814 41,506 126,023 1,439 — 286,296 
YTD gross charge-offs— — — — — — — — — 
Commercial real estate and other
Pass188,981 271,996 91,564 84,090 440,982 722,606 64,895 — 1,865,114 
Special mention— 3,990 — 2,560 — 15,074 — — 21,624 
Substandard— — — 4,450 1,878 13,844 — — 20,172 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total commercial real estate and other188,981 275,986 91,564 91,100 442,860 751,524 64,895 — 1,906,910 
YTD gross charge-offs— — — — 127 — — — 127 
Commercial and industrial
Pass59,104 72,290 34,978 17,092 41,930 61,420 279,898 488 567,200 
Special mention— — 900 27 356 1,292 21,091 — 23,666 
Substandard— 277 6,388 60 16,219 714 9,743 945 34,346 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total commercial and industrial59,104 72,567 42,266 17,179 58,505 63,426 310,732 1,433 625,212 
YTD gross charge-offs— 46 — 20 — — — — 66 
Consumer
Pass796 — 1,297 — 452 — 121 — 2,666 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total consumer796 — 1,297 — 452 — 121 — 2,666 
YTD gross charge-offs— — — — — — — — — 
Total by risk rating:
Pass$303,983 $447,751 $184,077 $130,264 $564,226 $946,559 $404,230 $814 $2,981,904 
Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisRevolving Loans Amortized Cost Basis
Converted to Term During the Period
(dollars in thousands)20262025202420232022PriorTotal
June 30, 2026
Special mention— 3,990 900 5,937 356 16,366 21,091 — 48,640 
Substandard— 277 6,388 4,510 25,758 16,588 9,743 945 64,209 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total loans$303,983 $452,018 $191,365 $140,711 $590,340 $979,513 $435,064 $1,759 $3,094,753 
YTD gross charge-offs$— $46 $— $20 $127 $— $— $— $193 
The risk category of LHFI by class of loans and origination year as of December 31, 2025 follows:
Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisRevolving Loans Amortized Cost Basis
Converted to Term During the Period
(dollars in thousands)20252024202320222021PriorTotal
December 31, 2025
Construction and land development
Pass$28,119 $39,469 $12,434 $35,050 $5,336 $2,263 $— $2,343 $125,014 
Special mention— — — — — — — — — 
Substandard— — — 13,808 — 72 — — 13,880 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total construction and land development28,119 39,469 12,434 48,858 5,336 2,335 — 2,343 138,894 
YTD gross charge-offs— — — — — — — — — 
Real estate - other:
1-4 family residential
Pass2,469 1,525 12,657 29,542 16,550 22,687 50,872 3,430 139,732 
Special mention— — — — — — — — — 
Substandard— — — 2,667 — — — — 2,667 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total 1-4 family residential2,469 1,525 12,657 32,209 16,550 22,687 50,872 3,430 142,399 
YTD gross charge-offs— — — — — — — — — 
Multifamily residential
Pass61,974 15,987 18,766 77,050 82,137 58,201 1,990 — 316,105 
Special mention— — — 7,970 — — — — 7,970 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total multifamily residential61,974 15,987 18,766 85,020 82,137 58,201 1,990 — 324,075 
YTD gross charge-offs— — — — — — — — — 
Commercial real estate and other
Pass259,144 96,078 81,643 422,093 342,770 472,569 70,135 15,711 1,760,143 
Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized Cost BasisRevolving Loans Amortized Cost Basis
Converted to Term During the Period
(dollars in thousands)20252024202320222021PriorTotal
Special mention4,018 — 2,765 13,676 1,108 17,386 6,207 — 45,160 
Substandard— — 3,161 195 1,450 10,336 — — 15,142 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total commercial real estate and other263,162 96,078 87,569 435,964 345,328 500,291 76,342 15,711 1,820,445 
YTD gross charge-offs— — — — 1,297 717 — — 2,014 
Commercial and industrial
Pass82,767 42,546 18,481 44,235 17,898 57,091 289,223 5,349 557,590 
Special mention— 639 33 486 11 1,747 16,191 170 19,277 
Substandard293 1,052 954 16,421 17 828 8,063 1,364 28,992 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total commercial and industrial83,060 44,237 19,468 61,142 17,926 59,666 313,477 6,883 605,859 
YTD gross charge-offs— — 91 3,541 163 1,179 — — 4,974 
Consumer
Pass431 873 — 649 2 1 259 — 2,215 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total consumer431 873 — 649 2 1 259 — 2,215 
YTD gross charge-offs— — — — 3,502 — — — 3,502 
Total by risk rating:
Pass$434,904 $196,478 $143,981 $608,619 $464,693 $612,812 $412,479 $26,833 $2,900,799 
Special mention4,018 639 2,798 22,132 1,119 19,133 22,398 170 72,407 
Substandard293 1,052 4,115 33,091 1,467 11,236 8,063 1,364 60,681 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total loans$439,215 $198,169 $150,894 $663,842 $467,279 $643,181 $442,940 $28,367 $3,033,887 
YTD gross charge-offs$— $— $91 $3,541 $4,962 $1,896 $— $— $10,490 
Schedule of Past Due LHFI and Collateral Dependent Loans
A summary of LHFI past due as of June 30, 2026 and December 31, 2025 follows:
Accruing Loans
(dollars in thousands)30-59 Days
Past Due		60-89 Days
Past Due		Over 90 Days
Past Due		Total
Past Due
Nonaccrual
CurrentTotal
June 30, 2026
Construction and land development$— $— $— $— $5,000 $128,828 $133,828 
Real estate - other:
  1-4 family residential— 2,030 — 2,030 2,661 135,150 139,841 
  Multifamily residential— — — — — 286,296 286,296 
  Commercial real estate and other— 1,951 — 1,951 83 1,904,876 1,906,910 
Commercial and industrial 588 372 — 960 1,178 623,074 625,212 
Consumer — — — — — 2,666 2,666 
$588 $4,353 $— $4,941 $8,922 $3,080,890 $3,094,753 

Accruing Loans
(dollars in thousands)30-59 Days
Past Due		60-89 Days
Past Due		Over 90 Days
Past Due		Total
Past Due		NonaccrualCurrentTotal
December 31, 2025
Construction and land development$— $— $— $— $13,808 $125,086 $138,894 
Real estate - other:
  1-4 family residential— — — — — 142,399 142,399 
  Multifamily residential7,970 — — 7,970 — 316,105 324,075 
  Commercial real estate and other5,838 — — 5,838 83 1,814,524 1,820,445 
Commercial and industrial 845 53 — 898 2,195 602,766 605,859 
Consumer — 29 — 29 — 2,186 2,215 
$14,653 $82 $— $14,735 $16,086 $3,003,066 $3,033,887 
A summary of collateral dependent loans by collateral type as of June 30, 2026 and December 31, 2025 follows:

Type of Collateral
(dollars in thousands)
Commercial
Real Estate
Residential
Real Estate
Business
Assets
June 30, 2026
Construction and land development$— $5,000 $— 
Real estate - other:
  1-4 family residential— 2,661 — 
  Commercial real estate and other83 — — 
Commercial and industrial 16,129 — 245 
$16,212 $7,661 $245 
Type of Collateral
(dollars in thousands)
Commercial
Real Estate
Residential
Real Estate
Business
Assets
December 31, 2025
Construction and land development$— $13,808 $— 
Real estate - other:
Commercial real estate and other83 — — 
Commercial and industrial17,330 250 
$17,413 $13,808 $250 
Schedule of LHFI Nonaccrual Loans
A summary of total LHFI nonaccrual loans and the amount of LHFI nonaccrual loans with no related ACL as of June 30, 2026 and December 31, 2025 follows:
Nonaccrual Loans
Collateral Dependent Loans
Non-Collateral Dependent Loans
(dollars in thousands)
Balance
ACL
Balance
ACL
Total
Nonaccrual
Loans		Nonaccrual
Loans with no ACL
June 30, 2026
Construction and land development$5,000 $373 $— $— $5,000 $— 
Real estate - other:
  1-4 family residential2,661 — — — 2,661 2,661 
  Commercial real estate and other83 — — — 83 83 
Commercial and industrial 637 64 541 — 1,178 438 
Total
$8,381 $437 $541 $— $8,922 $3,182 
Nonaccrual Loans
Collateral Dependent Loans
Non-Collateral Dependent Loans
(dollars in thousands)
Balance
ACL
Balance
ACL
Total
Nonaccrual
Loans		Nonaccrual
Loans with no ACL
December 31, 2025
Construction and land development$13,808 $373 $— $— $13,808 $8,808 
Real estate - other:
  Commercial real estate and other83 — — — 83 83 
Commercial and industrial 1,865 207 330 — 2,195 553 
Total
$15,756 $580 $330 $— $16,086 $9,444 
Schedule of Modified Loans to Borrowers
The following table presents the period-end amortized cost basis of modified loans to borrowers experiencing financial difficulty during the three and six months ended June 30, 2026 and 2025.
Three Months Ended June 30, 2026
(dollars in thousands)Term ExtensionInterest Rate Reduction and Term Extension
Total
Total as a % of Loan Class
Real estate - other:
  Commercial real estate and other
13,258 3,237 16,495 0.9 %
Commercial and industrial— 1,048 1,048 0.2 %
Total
$13,258 $4,285 $17,543 0.6 %
Six Months Ended June 30, 2026
(dollars in thousands)Term ExtensionInterest Rate Reduction and Term Extension
Total
Total as a % of Loan Class
Real estate - other:
  Commercial real estate and other
13,258 3,237 16,495 0.9 %
Commercial and industrial— 1,993 1,993 0.3 %
Total
$13,258 $5,230 $18,488 0.6 %
Three Months Ended June 30, 2025
(dollars in thousands)Term ExtensionPayment DelayTerm Extension and Payment Delay
Total
Total as a % of Loan Class
Real estate - other:
  Commercial real estate and other— — 183 183 — %
Commercial and industrial6,780 134 39 6,953 1.1 %
Total$6,780 $134 $222 $7,136 0.2 %
Six Months Ended June 30, 2025
(dollars in thousands)Term ExtensionPayment DelayTerm Extension and Payment Delay
Total
Total as a % of Loan Class
Real estate - other:
  Commercial real estate and other— — 183 $183 — %
Commercial and industrial15,974 134 39 $16,147 2.7 %
Total$15,974 $134 $222 $16,330 0.5 %
The following tables present the financial effect of loans to borrowers experiencing financial difficulty that were modified during the three and six months ended June 30, 2026 and 2025.
Three Months Ended June 30, 2026
(dollars in thousands)Financial effect
Term Extension:
Real estate - other:
Commercial real estate and other
Extended maturity by a weighted average of six months
Interest Rate Reduction and Term Extension:
Real estate - other:
Commercial real estate and other
Extended maturity by a weighted average of six months and reduced interest rates by a weighted average of 1.38%
Commercial and industrial
Extended maturity by a weighted average of six months and reduced interest rates by a weighted average of 0.97%
Six Months Ended June 30, 2026
(dollars in thousands)Financial effect
Term Extension:
Real estate - other:
Commercial real estate and other
Extended maturity by a weighted average of six months
Interest Rate Reduction and Term Extension:
Real estate - other:
Commercial real estate and other
Extended maturity by a weighted average of six months and reduced interest rates by a weighted average of 1.38%
Commercial and industrial
Extended maturity by a weighted average of seven months and reduced interest rates by a weighted average of 1.58%
Three Months Ended June 30, 2025
(dollars in thousands)Financial effect
Term Extension:
Commercial and industrial
Extended term by a weighted average of six months
Payment Delay:
Commercial and industrial
Three months full payment deferrals and one year of partial payment deferrals
Term Extension and Payment Delay:
Commercial real estate and other
Extended maturity by a weighted average of one year and granted one year partial payment deferrals.
Commercial and industrial
Extended maturity by a weighted average of six months and granted four months of payment deferrals.
Six Months Ended June 30, 2025
(dollars in thousands)Financial effect
Term Extension:
Commercial and industrial
Extended term by a weighted average of ten months
Payment Delay:
Commercial and industrial
Three months full payment deferrals and one year of partial payment deferrals
Term Extension and Payment Delay:
Real estate - other:
Commercial real estate and other
Extended maturity by a weighted average of one year and granted one year partial payment deferrals.
Commercial and industrial
Extended maturity by a weighted average of six months and granted four months of payment deferrals.
Schedule of Modified Financing Receivable, Modified, Past Due
The following tables present a payment aging analysis of the period-end amortized cost of loans to borrowers experiencing financial difficulty that were modified during the twelve month period ended June 30, 2026 and 2025.
Accruing Loans
(dollars in thousands)
30-59
Days
Past Due
60-89
Days
Past Due
Over 90
Days
Past Due
Total
Past Due		NonaccrualCurrentTotal
June 30, 2026
Real estate:
Commercial real estate and other$— $— $— $— $— $16,691 $16,691 
Commercial and industrial— — — — — 9,257 9,257 
$— $— $— $— $— $25,948 $25,948 
Accruing Loans
(dollars in thousands)
30-59
Days
Past Due
60-89
Days
Past Due
Over 90
Days
Past Due
Total
Past Due		NonaccrualCurrentTotal
June 30, 2025
Real estate:
Commercial real estate and other$— $— $— $— $— $183 $183 
Commercial and industrial— — — — 342 15,805 16,147 
$— $— $— $— $342 $15,988 $16,330 
Schedule of Changes in Allowance for Credit Losses
A summary of the changes in the ACL for loans and unfunded commitments for the periods indicated follows:
Three Months Ended
June 30, 		Six Months Ended
June 30,
(dollars in thousands)2026202520262025
Allowance for loan losses (ALL)
Balance, beginning of period$34,002 $45,839 $34,348 $50,540 
Provision for (reversal of) loan losses1,050 (663)669 (3,821)
Charge-offs(193)(4,247)(193)(7,406)
Recoveries1 181 36 1,797 
     Net charge-offs(192)(4,066)(157)(5,609)
Balance, end of period$34,860 $41,110 $34,860 $41,110 
Reserve for unfunded loan commitments
Balance, beginning of period$2,105 $2,485 $2,105 $3,103 
(Reversal of) provision for credit losses for unfunded loan commitments (336)29 (336)(589)
Balance, end of period1,769 2,514 1,769 2,514 
Allowance for credit losses, end of period
$36,629 $43,624 $36,629 $43,624 

A summary of changes in the ALL by loan portfolio segment for the periods indicated follows:
(dollars in thousands)Construction and Land DevelopmentReal Estate -
Other		Commercial & IndustrialConsumerTotal
Three Months Ended June 30, 2026
Beginning of period$1,388 $24,897 $7,708 $9 $34,002 
(Reversal of) provision for loan losses(99)948 199 2 1,050 
Charge-offs— (127)(66)— (193)
Recoveries— — 1 — 1 
Net charge-offs— (127)(65)— (192)
End of period$1,289 $25,718 $7,842 $11 $34,860 
Three Months Ended June 30, 2025
Beginning of period$1,704 $26,929 $16,164 $1,042 $45,839 
(Reversal of) provision for loan losses
(147)(592)(137)213 (663)
Charge-offs— (359)(3,621)(267)(4,247)
Recoveries— — 179 2 181 
Net charge-offs— (359)(3,442)(265)(4,066)
End of period$1,557 $25,978 $12,585 $990 $41,110 
(dollars in thousands)Construction and Land DevelopmentReal Estate -
Other		Commercial & IndustrialConsumerTotal
Six Months Ended June 30, 2026
Beginning of period$1,204 $24,590 $8,544 $10 $34,348 
Provision for (reversal of) loan losses85 1,250 (667)1 669 
Charge-offs— (127)(66)— (193)
Recoveries— 5 31 — 36 
Net charge-offs$— $(122)$(35)$— $(157)
End of period$1,289 $25,718 $7,842 $11 $34,860 
Six Months Ended June 30, 2025
Beginning of period$1,953 $29,399 $18,056 $1,132 $50,540 
(Reversal of) provision for loan losses(396)(1,410)(2,411)396 (3,821)
Charge-offs— (2,014)(4,852)(540)(7,406)
Recoveries— 3 1,792 2 1,797 
Net charge-offs$— $(2,011)$(3,060)$(538)$(5,609)
End of period$1,557 $25,978 $12,585 $990 $41,110