v3.26.1
Loans Receivable
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
Loans Receivable Loans Receivable
The Company originates loans in the ordinary course of business and has also acquired loans through mergers and acquisitions. In addition to originating loans, the Company may also purchase loans through pool purchases, participation purchases and syndicated loan purchases. Accrued interest receivable was excluded from disclosures presenting the Company's amortized cost of loans receivable, as it was deemed insignificant.
(a) Loan Origination/Risk Management
The Company categorizes the individual loans in the total loan portfolio into four segments: commercial business; residential real estate; real estate construction and land development; and consumer. Within these segments are classes of loans for which management monitors and assesses credit risk in the loan portfolios. A detailed description of the portfolio segments and classes is contained in the 2025 Annual Form 10-K.
The Company has certain lending policies and guidelines in place that are designed to maximize loan income within an acceptable level of risk. Management reviews and approves these policies and guidelines on a regular basis. A reporting system supplements the review process by providing management with frequent reports related to loan production, loan quality, concentrations of credit, loan delinquencies and nonperforming and criticized loans. The Company also conducts internal loan reviews and validates the credit risk assessment on a periodic basis and presents the results of these reviews to management. The loan review process complements and reinforces the risk identification and assessment decisions made by loan officers and credit personnel.
The amortized cost of loans receivable, net of ACL on loans, consisted of the following portfolio segments and classes at the dates indicated:
June 30,
2026		December 31,
2025
(Dollars in thousands)
Commercial business:
Commercial and industrial$1,051,269 $818,000 
Owner-occupied CRE1,227,674 1,034,829 
Non-owner occupied CRE2,509,283 2,057,844 
Total commercial business4,788,226 3,910,673 
Residential real estate348,838 358,834 
Real estate construction and land development:
Residential
136,595 95,350 
Commercial and multifamily
259,947 247,975 
Total real estate construction and land development396,542 343,325 
Consumer214,135 170,434 
Loans receivable5,747,741 4,783,266 
ACL on loans(59,473)(52,584)
Loans receivable, net$5,688,268 $4,730,682 
Balances included in the amortized cost of loans receivable:
Unamortized net discount on acquired loans$(20,274)$(694)
Unamortized net deferred fee$(11,260)$(11,152)
(b) Concentrations of Credit
Most of the Company’s lending activity occurs within its primary market areas which are concentrated along the I-5 corridor from Whatcom County, Washington to Lane County, Oregon, as well as Clallam, Jefferson, Kitsap, Mason, Spokane and Yakima County, Washington and Ada County, Idaho. Additionally, the Company's loan portfolio is concentrated in commercial business loans, which include commercial and industrial, owner-occupied and nonowner-occupied CRE loans, and commercial and multifamily real estate construction and land development loans. Commercial business loans and commercial and multifamily real estate construction and land development loans are generally considered as having a more inherent risk of default than residential real estate loans or other consumer loans. Also, the loan balance per borrower is typically larger for commercial loans than that for residential real estate loans and consumer loans, implying higher potential losses on an individual loan basis.
(c) Credit Quality Indicators
As part of the ongoing monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including trends related to (i) the risk grade of the loans, (ii) the level of classified loans, (iii) net charge-offs, (iv) nonperforming loans, (v) past due status, and (vi) the general economic conditions of the United States of America, and specifically the states of Washington, Oregon and Idaho.
The Company utilizes a risk grading matrix to assign a risk grade to each of its loans. Loans are graded on a scale of 1 to 10. Risk grades are aggregated to create the risk categories of Pass for grades 1 to 6, Special Mention or "SM" for grade 7, Substandard or "SS" for grade 8, Doubtful for grade 9 and Loss for grade 10. Descriptions of the general characteristics of the risk grades, including qualitative information on how the risk grades relate to the risk of loss, are contained in the 2025 Annual Form 10-K. Numerical loan grades for loans are established at the origination of the loan. Changes to loan grades are considered at the time new information about the performance of a loan becomes available, including the receipt of updated financial information from the borrower, results of annual term loan reviews and scheduled loan reviews. For consumer loans, the Company follows the FDIC’s Uniform Retail Credit Classification and Account Management Policy for subsequent classification in the event of payment delinquencies or default. Typically, an individual loan grade will not be changed from the prior period unless there is a specific indication of credit deterioration or improvement. Credit deterioration is evidenced by delinquency, direct communications with the borrower or other borrower information that becomes known to management. Credit improvements are evidenced by known facts regarding the borrower or the collateral property.
Loan grades relate to the likelihood of losses in that the higher the grade, the greater the loss potential. Loans with a Pass grade may have some estimated inherent losses, but to a lesser extent than the other loan grades. The SM loan grade is transitory in that the Company is waiting on additional information to determine the likelihood and extent of any potential loss. The likelihood of loss for SM graded loans, however, is greater than Watch graded loans because there has been measurable credit deterioration. Loans with a SS grade have further credit deterioration and include both accrual loans and nonaccrual loans. For Doubtful and Loss graded loans, the Company is almost certain of the losses and the outstanding principal balances are generally charged off to the realizable value. There were no loans graded Doubtful or Loss as of June 30, 2026 or December 31, 2025.
The following tables present the amortized cost of loans receivable by risk grade and origination year at the dates indicated:
June 30, 2026
Term Loans Amortized Cost Basis by Origination YearRevolving Loans
Revolving Loans Converted(1)
Loans Receivable
20262025202420232022Prior
(Dollars in thousands)
Commercial business:
Commercial and industrial
Pass$40,058 $146,990 $163,259 $130,709 $111,104 $217,825 $163,284 $2,113 $975,342 
SM68 1,009 6,127 808 5,386 1,583 14,534 222 29,737 
SS715 1,327 3,157 17,829 6,743 6,032 10,387 — 46,190 
Total40,841 149,326 172,543 149,346 123,233 225,440 188,205 2,335 1,051,269 
Owner-occupied CRE
Pass65,735 144,412 159,086 99,006 147,957 557,365 995 5,584 1,180,140 
SM— — — 221 — 31,448 — — 31,669 
SS— — — 3,699 — 12,166 — — 15,865 
Total65,735 144,412 159,086 102,926 147,957 600,979 995 5,584 1,227,674 
Non-owner occupied CRE
Pass86,026 245,422 219,699 247,081 480,057 1,142,373 — 2,217 2,422,875 
SM— — 2,686 3,681 — 47,347 — — 53,714 
SS— 99 — — 5,742 26,853 — — 32,694 
Total86,026 245,521 222,385 250,762 485,799 1,216,573 — 2,217 2,509,283 
Total commercial business
Pass191,819 536,824 542,044 476,796 739,118 1,917,563 164,279 9,914 4,578,357 
SM68 1,009 8,813 4,710 5,386 80,378 14,534 222 115,120 
SS715 1,426 3,157 21,528 12,485 45,051 10,387 — 94,749 
Total192,602 539,259 554,014 503,034 756,989 2,042,992 189,200 10,136 4,788,226 
Residential real estate
Pass— — 18,296 40,272 121,783 166,281 — — 346,632 
SS— — — 181 868 1,157 — — 2,206 
Total— — 18,296 40,453 122,651 167,438 — — 348,838 
Real estate construction and land development:
Residential
Pass30,570 68,011 28,694 5,647 1,244 — 1,480 — 135,646 
SS— — — 949 — — — — 949 
Total30,570 68,011 28,694 6,596 1,244 — 1,480 — 136,595 
Commercial and multifamily
Pass18,376 108,011 55,922 36,716 23,314 1,312 — — 243,651 
SM— — — 8,828 877 283 — — 9,988 
SS— — — 837 — 5,471 — — 6,308 
Total18,376 108,011 55,922 46,381 24,191 7,066 — — 259,947 
June 30, 2026
Term Loans Amortized Cost Basis by Origination YearRevolving Loans
Revolving Loans Converted(1)
Loans Receivable
20262025202420232022Prior
(Dollars in thousands)
Total real estate construction and land development
Pass48,946 176,022 84,616 42,363 24,558 1,312 1,480 — 379,297 
SM— — — 8,828 877 283 — — 9,988 
SS— — — 1,786 — 5,471 — — 7,257 
Total48,946 176,022 84,616 52,977 25,435 7,066 1,480 — 396,542 
Consumer
Pass501 3,732 1,167 1,754 3,433 15,880 185,016 1,420 212,903 
SS— — — 227 95 294 284 332 1,232 
Total501 3,732 1,167 1,981 3,528 16,174 185,300 1,752 214,135 
Loans receivable
Pass241,266 716,578 646,123 561,185 888,892 2,101,036 350,775 11,334 5,517,189 
SM68 1,009 8,813 13,538 6,263 80,661 14,534 222 125,108 
SS715 1,426 3,157 23,722 13,448 51,973 10,671 332 105,444 
Total$242,049 $719,013 $658,093 $598,445 $908,603 $2,233,670 $375,980 $11,888 $5,747,741 
(1) Represents the loans receivable balance at June 30, 2026 which was converted from a revolving loan to a non-revolving amortizing loan during the six months ended June 30, 2026.
December 31, 2025
Term Loans Amortized Cost Basis by Origination Year
Revolving Loans
Revolving Loans Converted(1)
Loans Receivable
20252024202320222021Prior
(Dollars in thousands)
Commercial business:
Commercial and industrial
Pass$132,722 $147,339 $91,315 $93,265 $35,392 $92,265 $148,902 $2,760 $743,960 
SM— 4,940 1,113 6,512 1,141 545 4,181 481 18,913 
SS1,207 2,104 18,270 7,299 62 6,920 18,626 639 55,127 
Total133,929 154,383 110,698 107,076 36,595 99,730 171,709 3,880 818,000 
Owner-occupied CRE
Pass125,339 115,937 83,969 129,824 134,443 403,824 6,042 — 999,378 
SM— — 3,785 — 4,694 6,539 — — 15,018 
SS— — 3,014 — — 17,419 — — 20,433 
Total125,339 115,937 90,768 129,824 139,137 427,782 6,042 — 1,034,829 
Non-owner-occupied CRE
Pass220,384 186,195 221,889 352,919 226,420 789,404 — — 1,997,211 
SM— — 2,832 — 7,798 25,374 — — 36,004 
SS— — — — — 24,629 — — 24,629 
Total220,384 186,195 224,721 352,919 234,218 839,407 — — 2,057,844 
Total commercial business
Pass478,445 449,471 397,173 576,008 396,255 1,285,493 154,944 2,760 3,740,549 
SM— 4,940 7,730 6,512 13,633 32,458 4,181 481 69,935 
SS1,207 2,104 21,284 7,299 62 48,968 18,626 639 100,189 
Total479,652 456,515 426,187 589,819 409,950 1,366,919 177,751 3,880 3,910,673 
Residential real estate
Pass— 21,697 43,453 125,709 124,512 41,166 — — 356,537 
SS— — 194 806 1,158 139 — — 2,297 
Total— 21,697 43,647 126,515 125,670 41,305 — — 358,834 
December 31, 2025
Term Loans Amortized Cost Basis by Origination Year
Revolving Loans
Revolving Loans Converted(1)
Loans Receivable
20252024202320222021Prior
(Dollars in thousands)
Real estate construction and land development:
Residential
Pass56,428 19,381 8,990 1,289 — 1,000 1,549 — 88,637 
SS— — 963 — 5,750 — — — 6,713 
Total56,428 19,381 9,953 1,289 5,750 1,000 1,549 — 95,350 
Commercial and multifamily
Pass71,519 74,178 43,396 49,163 1,359 1,477 — — 241,092 
SM— — — 886 — 301 — — 1,187 
SS— — — — — 5,696 — — 5,696 
Total71,519 74,178 43,396 50,049 1,359 7,474 — — 247,975 
Total real estate construction and land development
Pass127,947 93,559 52,386 50,452 1,359 2,477 1,549 — 329,729 
SM— — — 886 — 301 — — 1,187 
SS— — 963 — 5,750 5,696 — — 12,409 
Total127,947 93,559 53,349 51,338 7,109 8,474 1,549 — 343,325 
Consumer
Pass680 218 602 1,158 248 13,319 149,834 2,447 168,506 
SS— — 423 25 — 658 500 322 1,928 
Total680 218 1,025 1,183 248 13,977 150,334 2,769 170,434 
Loans receivable
Pass607,072 564,945 493,614 753,327 522,374 1,342,455 306,327 5,207 4,595,321 
SM— 4,940 7,730 7,398 13,633 32,759 4,181 481 71,122 
SS1,207 2,104 22,864 8,130 6,970 55,461 19,126 961 116,823 
Total$608,279 $571,989 $524,208 $768,855 $542,977 $1,430,675 $329,634 $6,649 $4,783,266 
(1) Represents the loans receivable balance at December 31, 2025 which was converted from a revolving loan to non-revolving amortizing loan during the year ended December 31, 2025.

The following tables present gross charge-offs by loan class and origination year, for the periods indicated:
Six Months Ended June 30, 2026
Current Period Gross Charge-offs by Origination YearRevolving LoansTotal Gross Charge-Offs
20262025202420232022Prior
(Dollars in thousands)
Commercial business$— $— $37 $503 $— $40 $— $580 
Residential real estate— — — — 64 — — 64 
Consumer— 5 1 — — 51 151 208 
Total
$— $5 $38 $503 $64 $91 $151 $852 
Six Months Ended June 30, 2025
Current Period Gross Charge-offs by Origination YearRevolving LoansTotal Gross Charge-Offs
20252024202320222021Prior
(Dollars in thousands)
Commercial business$— $— $222 $404 $— $50 $— $676 
Consumer— — 19 2 — 79 158 258 
Total
$— $— $241 $406 $— $129 $158 $934 
(d) Nonaccrual Loans
The following tables present the amortized cost of nonaccrual loans at the dates indicated:
June 30, 2026
Nonaccrual without ACLNonaccrual with ACLTotal Nonaccrual
(Dollars in thousands)
Commercial business:
Commercial and industrial$2,959 $2,166 $5,125 
Non-owner occupied CRE2,312 — 2,312 
Total commercial business5,271 2,166 7,437 
Residential real estate1,338 — 1,338 
Real estate construction and land development:
Residential
949 — 949 
Commercial and multifamily
5,471 — 5,471 
Total real estate construction and land development6,420 — 6,420 
Consumer315 — 315 
Total$13,344 $2,166 $15,510 
December 31, 2025
Nonaccrual without ACLNonaccrual with ACLTotal Nonaccrual
(Dollars in thousands)
Commercial business:
Commercial and industrial$853 $2,086 $2,939 
Non-owner occupied CRE3,947 — 3,947 
Total commercial business4,800 2,086 6,886 
Residential real estate
1,196 — 1,196 
Real estate construction and land development:
Residential
6,713 — 6,713 
Commercial and multifamily
5,695 — 5,695 
Total real estate construction and land development12,408 — 12,408 
Consumer486 — 486 
Total$18,890 $2,086 $20,976 
The following table presents the reversal of interest income on loans due to the write-off of accrued interest receivable upon the initial classification of loans as nonaccrual loans and the interest income recognized due to payment in full or sale of previously classified nonaccrual loans during the periods indicated:
Three Months Ended June 30,
20262025
Interest Income ReversedInterest Income RecognizedInterest Income ReversedInterest Income Recognized
(Dollars in thousands)
Commercial business:
Commercial and industrial$(104)$110 $(22)$6 
Residential real estate
(11)— — — 
Real estate construction and land development:
Commercial and multifamily
— — (154)— 
Consumer(3)8 — — 
Total$(118)$118 $(176)$6 
Six Months Ended June 30,
20262025
Interest Income ReversedInterest Income RecognizedInterest Income ReversedInterest Income Recognized
(Dollars in thousands)
Commercial business:
Commercial and industrial$(142)$111 $(22)$19 
Owner-occupied CRE(9)10 — — 
Non-owner occupied CRE— 471 — — 
Total commercial business(151)592 (22)19 
Residential real estate(16)— (28)— 
Real estate construction and land development:
Residential— 412 — — 
Commercial and multifamily— — (154)— 
Total real estate construction and land development— 412 (154)— 
Consumer(5)8 — — 
Total$(172)$1,012 $(204)$19 
For the three and six months ended June 30, 2026 and 2025, no interest income was recognized subsequent to a loan’s classification as nonaccrual, except as indicated in the tables above due to payment in full or sale.
(e) Past due loans
The Company performs an aging analysis of past due loans using policies consistent with regulatory reporting requirements with categories of 30-89 days past due and 90 or more days past due. The following tables present the amortized cost of past due loans at the dates indicated:
June 30, 2026
30-89 Days90 Days or
Greater		Total Past 
Due		CurrentLoans Receivable
(Dollars in thousands)
Commercial business:
Commercial and industrial$9,618 $4,592 $14,210 $1,037,059 $1,051,269 
Owner-occupied CRE2,726 — 2,726 1,224,948 1,227,674 
Non-owner occupied CRE562 2,312 2,874 2,506,409 2,509,283 
Total commercial business12,906 6,904 19,810 4,768,416 4,788,226 
Residential real estate
— 1,158 1,158 347,680 348,838 
Real estate construction and land development:
Residential
2,138 — 2,138 134,457 136,595 
Commercial and multifamily
— — — 259,947 259,947 
Total real estate construction and land development2,138 — 2,138 394,404 396,542 
Consumer355 142 497 213,638 214,135 
Total$15,399 $8,204 $23,603 $5,724,138 $5,747,741 
December 31, 2025
30-89 Days90 Days or
Greater		Total Past 
Due		CurrentLoans Receivable
(Dollars in thousands)
Commercial business:
Commercial and industrial$7,115 $1,973 $9,088 $808,912 $818,000 
Owner-occupied CRE735 — 735 1,034,094 1,034,829 
Non-owner occupied CRE1,955 3,947 5,902 2,051,942 2,057,844 
Total commercial business9,805 5,920 15,725 3,894,948 3,910,673 
December 31, 2025
30-89 Days90 Days or
Greater		Total Past 
Due		CurrentLoans Receivable
(Dollars in thousands)
Residential real estate
425 1,389 1,814 357,020 358,834 
Real estate construction and land development:
Residential
— 6,714 6,714 88,636 95,350 
Commercial and multifamily
— 5,695 5,695 242,280 247,975 
Total real estate construction and land development— 12,409 12,409 330,916 343,325 
Consumer505 345 850 169,584 170,434 
Total$10,735 $20,063 $30,798 $4,752,468 $4,783,266 
The following table present loans 90 days or more past due and still accruing interest:
June 30, 2026December 31, 2025
(Dollars in thousands)
Real estate construction and land development:
Residential
— 194 
Total$— $194 
(f) Collateral-dependent Loans
The following tables present the type of collateral securing loans individually evaluated for credit losses and for which the repayment was expected to be provided substantially through the operation or sale of the collateral at the dates indicated, with balances representing the amortized cost of the loan classified by the primary collateral category of each loan if multiple collateral sources secure the loan:
June 30, 2026
CREFarmlandResidential Real EstateEquipmentTotal
(Dollars in thousands)
Commercial business:
Commercial and industrial$— $537 $— $1,852 $2,389 
Non-owner occupied CRE2,312 — — — 2,312 
Total commercial business2,312 537 — 1,852 4,701 
Residential real estate
— — 1,338 — 1,338 
Real estate construction and land development:
Residential
— — 949 — 949 
Commercial and multifamily
5,471 — — — 5,471 
Total real estate construction and land development5,471 — 949 — 6,420 
Consumer— — 314 — 314 
Total$7,783 $537 $2,601 $1,852 $12,773 
December 31, 2025
CREFarmlandResidential Real EstateEquipmentTotal
(Dollars in thousands)
Commercial business:
Commercial and industrial$— $482 $— $61 $543 
Non-owner occupied CRE3,947 — — — 3,947 
Total commercial business3,947 482 — 61 4,490 
Residential real estate
— — 1,196 — 1,196 
December 31, 2025
CREFarmlandResidential Real EstateEquipmentTotal
(Dollars in thousands)
Real estate construction and land development:
Residential
— — 6,713 — 6,713 
Commercial and multifamily
5,695 — — — 5,695 
Total real estate construction and land development5,695 — 6,713 — 12,408 
Consumer— — 486 — 486 
Total$9,642 $482 $8,395 $61 $18,580 
There have been no significant changes to the collateral securing loans individually evaluated for credit losses and for which repayment was expected to be provided substantially through the operation or sale of the collateral during the six months ended June 30, 2026, except changes due to additions or removals of loans in this classification.
(g) Modification of Loans
Occasionally, the Company modifies loans to borrowers in financial distress by providing modifications of loans which may include interest rate reductions, principal or interest forgiveness, term extensions, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. In some cases, the Company provides multiple types of modifications on one loan. When principal forgiveness is provided, the amount of forgiveness is charged-off against the ACL.
The following tables present the amortized cost of loans that were experiencing both financial difficulty and modified during the periods indicated:
Three Months Ended June 30, 2026
Term ExtensionTotal Modified Loans% of Modified Loans to Loans Receivable
(Dollars in thousands)
Commercial business:
Commercial and industrial$8,165 $8,165 0.78 %
Owner-occupied CRE870 870 0.07 
Total commercial business9,035 9,035 0.19 
Real estate construction and land development:
Residential
949 949 0.69 
Total$9,984 $9,984 0.17 %
Three Months Ended June 30, 2025
Term ExtensionTotal Modified Loans% of Modified Loans to Loans Receivable
(Dollars in thousands)
Commercial business:
Commercial and industrial$15,497 $15,497 1.86 %
Owner-occupied CRE1,754 1,754 0.17 
Total commercial business17,251 17,251 0.46 
Real estate construction and land development:
Commercial and multifamily
5,968 5,968 1.68 
Total real estate construction and land development5,968 5,968 1.38 
Total$23,219 $23,219 0.49 %
Six Months Ended June 30, 2026
Term ExtensionTotal Modified Loans
% of Modified Loans to Loans Receivable
(Dollars in thousands)
Commercial business:
Commercial and industrial$11,812 $11,812 1.12 %
Owner-occupied CRE870 870 0.07 
Total commercial business12,682 12,682 0.26 
Real estate construction and land development:
Residential
949 949 0.69 
Commercial and multifamily
5,471 5,471 2.10 
Total real estate construction and land development6,420 6,420 1.62 
Total$19,102 $19,102 0.33 %
Six Months Ended June 30, 2025
Term ExtensionTotal Modified Loans
% of Modified Loans to Loans Receivable
(Dollars in thousands)
Commercial business:
Commercial and industrial$17,637 $17,637 2.12 %
Owner-occupied CRE1,754 $1,754 0.17 %
Non-owner occupied CRE676 676 0.03 
Total commercial business20,067 20,067 0.53 
Real estate construction and land development:
Commercial and multifamily
6,858 6,858 1.93 
Total real estate construction and land development6,858 6,858 1.58 
Consumer— — — 
Total$26,925 $26,925 0.56 %
The following tables present the financial effects of the loan modifications presented in the preceding tables during the periods indicated:
Three Months Ended
 June 30, 2026
Weighted Average Years of Term Extensions
Commercial business:
Commercial and industrial0.99
Owner-occupied CRE0.88
Total commercial business0.98
Real estate construction and land development:
Residential
1.67
Total1.04
Three Months Ended
 June 30, 2025
Weighted Average Years of Term Extensions
Commercial business:
Commercial and industrial0.61
Owner-occupied CRE1.41
Total commercial business0.70
Real estate construction and land development:
Commercial and multifamily
0.50
Total0.65
Six Months Ended
 June 30, 2026
Weighted Average Years of Term Extensions
Commercial business:
Commercial and industrial0.96
Owner-occupied CRE0.88
Total commercial business0.95
Real estate construction and land development:
Residential
1.67
Commercial and multifamily
1.17
Total real estate construction and land development1.24
Total1.05
Six Months Ended
 June 30, 2025
Weighted Average Years of Term Extensions
Commercial business:
Commercial and industrial0.61
Owner-occupied CRE1.41
Non-owner occupied CRE0.42
Total commercial business0.67
Real estate construction and land development:
Commercial and multifamily
0.64
Total0.67
At June 30, 2026, there were $7.2 million in commitments to lend additional funds to borrowers experiencing financial difficulty whose terms had been modified during the six months ended June 30, 2026. At December 31, 2025, there were $7.1 million in commitments to lend additional funds to borrowers experiencing financial difficulty whose terms had been modified during the year ended December 31, 2025.
The Company closely monitors the performance of loans that are modified for borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts.
The Company considers a modified loan in payment default if the borrower is 90 or more days past due. At June 30, 2026, there were no loans that were 90 days past due or in default that had been modified due to term extension in the past 12 months. At December 31, 2025, there were three loans for a total of $6.8 million that were 90 days past due or in default that had been modified in the past 12 months, consisting of $6.7 million of residential construction and $106,000 of consumer loans.
The following tables present the performance of loans that have been modified within the previous twelve months:
June 30, 2026
Current30-89 Days90 Days or
Greater
Nonaccrual
Total
(Dollars in thousands)
Commercial business:
Commercial and industrial$4,481 $95 $4,576 
Owner-occupied CRE650 650 
Non-owner occupied CRE213 213 
Total commercial business5,344 — — 95 5,439 
Consumer11 11 
Total$5,355 $— $— $95 $5,450 
June 30, 2025
Current30-89 Days90 Days or
Greater
Nonaccrual
Total
(Dollars in thousands)
Commercial business:
Commercial and industrial$7,593 $150 $7,743 
Owner-occupied CRE1,532 1,532 
Non-owner occupied CRE676 676 
Total commercial business9,801 — — 150 9,951 
Real estate construction and land development:
Residential
16,515 6,750 23,265 
Commercial and multifamily
16 5,968 5,984 
Total real estate construction and land development16,531 — 6,750 5,968 29,249 
Consumer— 
Total$26,332 $— $6,750 $6,118 $39,200 
(h) Accrued interest receivable on loans receivable
Accrued interest receivable on loans receivable totaled $17.4 million and $14.8 million at June 30, 2026 and December 31, 2025, respectively, and is excluded from the calculation of the ACL on loans as interest accrued, but not received, is reversed timely.
(i) Foreclosure proceedings in process
At June 30, 2026, there were no home equity loans for which formal foreclosure proceedings were in process. At December 31, 2025, there were two home equity loans valued at a total of $1.2 million secured by residential real estate, for which formal foreclosure proceedings were in process.