Note 4 - Loans and Allowance for Credit Losses

6 Months Ended

Jun. 30, 2026

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

NOTE 4 - LOANS AND ALLOWANCE FOR CREDIT LOSSES

Our loan portfolio consists primarily of loans to borrowers within the Southern California metropolitan area, the New York City metropolitan area, Chicago (Illinois), Las Vegas (Nevada), Edison (New Jersey) and Honolulu (Hawaii). Although we seek to avoid concentrations of loans to a single industry or based upon a single class of collateral, real estate and real estate associated businesses are among the principal industries in our market area and, as a result, our loan and collateral portfolios are, to some degree, concentrated in those industries.

The following table presents the balances in our loan held for investment ("HFI") portfolio by loan segment and class as of the dates indicated:

	*June 30, 2026*			*December 31, 2025*
Loans HFI: ⁽¹⁾	*(dollars in thousands)*
Real Estate:
Single-family residential mortgages	$	1,680,635		$	1,655,382
Commercial real estate ⁽²⁾		1,277,559			1,303,019
Construction and land development		146,273			155,464
Commercial:
Commercial and industrial		151,961			140,061
SBA		49,667			55,978
Other		3,364			4,397
Total loans HFI	$	3,309,459		$	3,314,301
Allowance for loan losses		(43,660	)		(43,888	)
Total loans HFI, net	$	3,265,799		$	3,270,413

	(1)	Net of premiums (discounts) on acquired loans and net deferred (fees) and costs on originated loans.
	(2)	Includes non-farm and non-residential real estate loans, multifamily residential loans and non-owner occupied single-family residential loans.

Accrued interest receivable on loans at June 30, 2026 and December 31, 2025 totaled $14.1 million and $14.3 million (included in "Accrued interest and other assets" in the consolidated balance sheets). At June 30, 2026 and December 31, 2025, loans with carrying values of $2.0 billion and $1.9 billion were pledged to secure advances from the Federal Home Loan Bank ("FHLB") for up to $1.5 billion and $1.4 billion, respectively. At June 30, 2026 and December 31, 2025, loans with carrying values of $88.6 million and $88.9 million were pledged to the Federal Reserve Bank of San Francisco Discount Window.

The following table presents a summary of the changes in the ACL for the periods indicated:

	*For the Three Months Ended*
	*June 30, 2026*									*March 31, 2026*								*June 30, 2025*
	*Allowance for loan losses*			*Reserve for unfunded loan commitments*			*Allowance for credit losses*			*Allowance for loan losses*			*Reserve for unfunded loan commitments*		*Allowance for credit losses*			*Allowance for loan losses*			*Reserve for unfunded loan commitments*		*Allowance for credit losses*
	*(dollars in thousands)*
Beginning balance	$	43,666		$	484		$	44,150		$	43,888		$	484	$	44,372		$	51,932		$	629	$	52,561
Provision for/(reversal of) credit losses		77			(77	)		—			(200	)		—		(200	)		2,387			—		2,387
Charge-offs		(119	)		—			(119	)		(27	)		—		(27	)		(3,339	)		—		(3,339	)
Recoveries		36			—			36			5			—		5			34			—		34
Ending balance	$	43,660		$	407		$	44,067		$	43,666		$	484	$	44,150		$	51,014		$	629	$	51,643

	*For the Six Months Ended June 30,*
	*2026*									*2025*
	*Allowance for loan losses*			*Reserve for unfunded loan commitments*			*Allowance for credit losses*			*Allowance for loan losses*			*Reserve for unfunded loan commitments*			*Allowance for credit losses*
	*(dollars in thousands)*
Beginning balance	$	43,888		$	484		$	44,372		$	47,729		$	729		$	48,458
(Reversal of)/provision for credit losses		(123	)		(77	)		(200	)		9,233			(100	)		9,133
Charge-offs		(146	)		—			(146	)		(6,066	)		—			(6,066	)
Recoveries		41			—			41			118			—			118
Ending balance	$	43,660		$	407		$	44,067		$	51,014		$	629		$	51,643

The following tables present the balance and activity related to the allowance for loan losses (“ALL”) for loans HFI by loan portfolio segment and class for the periods presented.

	*For the Three Months Ended June 30, 2026*
	*Single-family residential mortgages*			*Commercial real estate*			*Construction and land development*		*Commercial and industrial*			*SBA*			*Other*			*Total*
Allowance for loan losses:	*(dollars in thousands)*
Beginning balance	$	21,988		$	17,639		$	1,446	$	1,672		$	769		$	152		$	43,666
(Reversal of)/provision for credit losses		(222	)		(139	)		508		23			(80	)		(13	)		77
Charge-offs		—			—			—		(102	)		—			(17	)		(119	)
Recoveries		—			27			—		—			—			9			36
Ending balance	$	21,766		$	17,527		$	1,954	$	1,593		$	689		$	131		$	43,660

	*For the Three Months Ended March 31, 2026*
	*Single-family residential mortgages*		*Commercial real estate*			*Construction and land development*			*Commercial and industrial*			*SBA*			*Other*			*Total*
Allowance for loan losses:	*(dollars in thousands)*
Beginning balance	$	21,585	$	18,162		$	1,502		$	1,647		$	824		$	168		$	43,888
Provision for/(reversal of) credit losses		403		(523	)		(56	)		28			(53	)		1			(200	)
Charge-offs		—		—			—			(4	)		(2	)		(21	)		(27	)
Recoveries		—		—			—			1			—			4			5
Ending balance	$	21,988	$	17,639		$	1,446		$	1,672		$	769		$	152		$	43,666

	*For the Three Months Ended June 30, 2025*
	*Single-family residential mortgages*		*Commercial real estate*			*Construction and land development*			*Commercial and industrial*			*SBA*			*Other*			*Total*
Allowance for loan losses:	*(dollars in thousands)*
Beginning balance	$	7,000	$	24,200		$	18,373		$	1,400		$	701		$	258		$	51,932
Provision for/(reversal of) credit losses		971		498			748			94			91			(15	)		2,387
Charge-offs		—		(3,275	)		(15	)		(1	)		(1	)		(47	)		(3,339	)
Recoveries		—		—			—			—			—			34			34
Ending balance	$	7,971	$	21,423		$	19,106		$	1,493		$	791		$	230		$	51,014

	*For the Six Months Ended June 30, 2026*
	*Single-family residential mortgages*		*Commercial real estate*			*Construction and land development*		*Commercial and industrial*			*SBA*			*Other*			*Total*
Allowance for loan losses:	*(dollars in thousands)*
Beginning balance	$	21,585	$	18,162		$	1,502	$	1,647		$	824		$	168		$	43,888
Provision for/(reversal of) credit losses		181		(662	)		452		51			(133	)		(12	)		(123	)
Charge-offs		—		—			—		(106	)		(2	)		(38	)		(146	)
Recoveries		—		27			—		1			—			13			41
Ending balance	$	21,766	$	17,527		$	1,954	$	1,593		$	689		$	131		$	43,660

	*For the Six Months Ended June 30, 2025*
	*Single-family residential mortgages*			*Commercial real estate*			*Construction and land development*			*Commercial and industrial*			*SBA*			*Other*			*Total*
Allowance for loan losses:	*(dollars in thousands)*
Beginning balance	$	6,053		$	21,879		$	17,518		$	1,339		$	654		$	286		$	47,729
Provision for/(reversal of) credit losses		3,164			2,819			2,991			157			138			(36	)		9,233
Charge-offs		(1,246	)		(3,275	)		(1,403	)		(81	)		(1	)		(60	)		(6,066	)
Recoveries		—			—			—			78			—			40			118
Ending balance	$	7,971		$	21,423		$	19,106		$	1,493		$	791		$	230		$	51,014

We categorize loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, collateral adequacy, credit documentation, and current economic trends, among other factors. We analyze loans individually by classifying the loans as to credit risk. This analysis typically includes larger, non-homogeneous loans such as commercial real estate (“CRE”), construction and land development (“C&D”), and commercial and industrial (“C&I”) loans. This analysis is performed on an ongoing basis as new information is obtained. We use the following definitions for risk ratings:

Pass - Loans classified as pass include loans not meeting the risk ratings defined below.

Special Mention - Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Substandard - Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful - Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable based on facts, conditions, and values that currently exist.

The following tables summarize our loans HFI by loan portfolio segment, risk rating and vintage year as of the dates indicated. The vintage year is the year of origination, renewal or major modification.

	*Term Loan by Vintage*
June 30, 2026	*2026*		*2025*		*2024*		*2023*		*2022*		*Prior*		*Revolving*		*Revolving Converted to Term During the Period*		*Total*
Real estate:		*(dollars in thousands)*
Single-family residential mortgages
Pass	$	178,820	$	312,384	$	76,171	$	114,908	$	477,039	$	518,686	$	892	$	—	$	1,678,900
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		707		866		153		9		—		1,735
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	178,820	$	312,384	$	76,171	$	115,615	$	477,905	$	518,839	$	901	$	—	$	1,680,635
YTD gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial real estate
Pass	$	100,358	$	256,220	$	141,173	$	42,597	$	381,811	$	307,237	$	—	$	—	$	1,229,396
Special mention		—		—		719		—		5,029		8,363		—		—		14,111
Substandard		—		—		4,920		—		1,562		27,570		—		—		34,052
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	100,358	$	256,220	$	146,812	$	42,597	$	388,402	$	343,170	$	—	$	—	$	1,277,559
YTD gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Construction and land development
Pass	$	7,487	$	6,392	$	36,271	$	—	$	43,701	$	44,350	$	—	$	—	$	138,201
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		8,072		—		—		8,072
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	7,487	$	6,392	$	36,271	$	—	$	43,701	$	52,422	$	—	$	—	$	146,273
YTD gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial:
Commercial and industrial
Pass	$	38	$	12,709	$	46	$	1,012	$	843	$	3,881	$	122,545	$	—	$	141,074
Special mention		—		—		—		—		—		—		27		—		27
Substandard		3		407		3,898		2		42		4,709		1,799		—		10,860
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	41	$	13,116	$	3,944	$	1,014	$	885	$	8,590	$	124,371	$	—	$	151,961
YTD gross charge-offs	$	1	$	104	$	1	$	—	$	—	$	—	$	—	$	—	$	106
SBA
Pass	$	2,692	$	8,740	$	2,233	$	1,219	$	4,159	$	17,682	$	—	$	—	$	36,725
Special mention		—		—		—		356		5,781		—		—		—		6,137
Substandard		—		—		2,655		—		—		4,150		—		—		6,805
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	2,692	$	8,740	$	4,888	$	1,575	$	9,940	$	21,832	$	—	$	—	$	49,667
YTD gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	2	$	—	$	—	$	2
Other:
Pass	$	—	$	—	$	—	$	53	$	353	$	2,942	$	11	$	—	$	3,359
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		5		—		—		5
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	53	$	353	$	2,947	$	11	$	—	$	3,364
YTD gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	38	$	—	$	—	$	38
Total by risk rating:
Pass	$	289,395	$	596,445	$	255,894	$	159,789	$	907,906	$	894,778	$	123,448	$	—	$	3,227,655
Special mention		—		—		719		356		10,810		8,363		27		—		20,275
Substandard		3		407		11,473		709		2,470		44,659		1,808		—		61,529
Doubtful		—		—		—		—		—		—		—		—		—
Total loans	$	289,398	$	596,852	$	268,086	$	160,854	$	921,186	$	947,800	$	125,283	$	—	$	3,309,459
Total YTD gross charge-offs	$	1	$	104	$	1	$	—	$	—	$	40	$	—	$	—	$	146

	*Term Loan by Vintage*
December 31, 2025	*2025*		*2024*		*2023*		*2022*		*2021*		*Prior*		*Revolving*		*Revolving Converted to Term During the Period*		*Total*
Real estate:		*(dollars in thousands)*
Single-family residential mortgages
Pass	$	369,196	$	98,047	$	122,104	$	501,580	$	209,318	$	351,536	$	978	$	—	$	1,652,759
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		679		1,944		—		—		—		—		2,623
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	369,196	$	98,047	$	122,783	$	503,524	$	209,318	$	351,536	$	978	$	—	$	1,655,382
YTD gross charge-offs	$	1	$	—	$	—	$	537	$	174	$	691	$	—	$	—	$	1,403
Commercial real estate
Pass	$	263,863	$	171,328	$	49,551	$	395,493	$	155,891	$	228,915	$	—	$	—	$	1,265,041
Special mention		—		—		—		4,300		668		8,281		—		—		13,249
Substandard		—		668		—		1,578		10,204		12,279		—		—		24,729
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	263,863	$	171,996	$	49,551	$	401,371	$	166,763	$	249,475	$	—	$	—	$	1,303,019
YTD gross charge-offs	$	—	$	—	$	—	$	—	$	1,383	$	3,296	$	—	$	—	$	4,679
Construction and land development
Pass	$	4,739	$	28,059	$	—	$	42,440	$	3,845	$	45,000	$	—	$	—	$	124,083
Special mention		—		3,387		—		—		—		—		—		—		3,387
Substandard		—		—		—		—		19,465		8,529		—		—		27,994
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	4,739	$	31,446	$	—	$	42,440	$	23,310	$	53,529	$	—	$	—	$	155,464
YTD gross charge-offs	$	—	$	—	$	—	$	1,246	$	6,929	$	—	$	—	$	—	$	8,175
Commercial:
Commercial and industrial																		—
Pass	$	13,681	$	55	$	1,041	$	892	$	2,645	$	5,839	$	99,594	$	—	$	123,747
Special mention		—		—		—		—		—		—		2,247		—		2,247
Substandard		413		6,014		5		52		—		5,423		2,160		—		14,067
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	14,094	$	6,069	$	1,046	$	944	$	2,645	$	11,262	$	104,001	$	—	$	140,061
YTD gross charge-offs	$	5	$	6	$	—	$	—	$	—	$	77	$	—	$	—	$	88
SBA
Pass	$	14,433	$	2,834	$	1,283	$	10,718	$	9,655	$	10,939	$	—	$	—	$	49,862
Special mention		—		—		354		—		—		—		—		—		354
Substandard		—		2,271		—		—		481		3,010		—		—		5,762
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	14,433	$	5,105	$	1,637	$	10,718	$	10,136	$	13,949	$	—	$	—	$	55,978
YTD gross charge-offs	$	—	$	12	$	—	$	—	$	—	$	175	$	—	$	—	$	187
Other:
Pass	$	—	$	—	$	86	$	630	$	3,583	$	86	$	12	$	—	$	4,397
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	—	$	—	$	86	$	630	$	3,583	$	86	$	12	$	—	$	4,397
YTD gross charge-offs	$	—	$	—	$	—	$	—	$	175	$	5	$	—	$	—	$	180
Total by risk rating:
Pass	$	665,912	$	300,323	$	174,065	$	951,753	$	384,937	$	642,315	$	100,584	$	—	$	3,219,889
Special mention		—		3,387		354		4,300		668		8,281		2,247		—		19,237
Substandard		413		8,953		684		3,574		30,150		29,241		2,160		—		75,175
Doubtful		—		—		—		—		—		—		—		—		—
Total loans	$	666,325	$	312,663	$	175,103	$	959,627	$	415,755	$	679,837	$	104,991	$	—	$	3,314,301
Total YTD gross charge-offs	$	6	$	18	$	—	$	1,783	$	8,661	$	4,244	$	—	$	—	$	14,712

The following tables present the aging of the recorded investment in past due loans HFI, by loan segment and class, as of the dates indicated.

	*Accruing Loans*
June 30, 2026	*30-59 Days*		*60-89 Days*		*90 Days or More*		Total Past Due ⁽¹⁾		*Nonaccrual Loans*		*Current*		*Total Loans HFI*
Real estate:	*(dollars in thousands)*
Single-family residential mortgages ⁽²⁾	$	4,418	$	1,609	$	—	$	6,027	$	394	$	1,674,214	$	1,680,635
Commercial real estate		750		168		—		918		8,146		1,268,495		1,277,559
Construction and land development		—		—		—		—		8,072		138,201		146,273
Commercial:
Commercial and industrial		1,919		61		—		1,980		5,113		144,868		151,961
SBA		—		17		—		17		2,029		47,621		49,667
Other		18		10		—		28		5		3,331		3,364
Total	$	7,105	$	1,865	$	—	$	8,970	$	23,759	$	3,276,730	$	3,309,459

	(1)	Past due loans exclude nonaccrual loans.
	(2)	Nonaccrual SFR mortgage loans include $153,000 of loans in the process of foreclosure.

	*Accruing Loans*
December 31, 2025	*30-59 Days*		*60-89 Days*		*90 Days or More*		Total Past Due ⁽¹⁾		*Nonaccrual Loans*		*Current*		*Total Loans HFI*
Real estate:	*(dollars in thousands)*
Single-family residential mortgages ⁽²⁾	$	5,140	$	1,321	$	—	$	6,461	$	2,143	$	1,646,778	$	1,655,382
Commercial real estate		284		204		—		488		8,158		1,294,373		1,303,019
Construction and land development		—		—		—		—		27,994		127,470		155,464
Commercial:
Commercial and industrial		1,277		—		—		1,277		5,116		133,668		140,061
SBA		—		542		—		542		1,221		54,215		55,978
Other		13		8		—		21		—		4,376		4,397
Total	$	6,714	$	2,075	$	—	$	8,789	$	44,632	$	3,260,880	$	3,314,301

	(1)	Past due loans exclude nonaccrual loans.
	(2)	Nonaccrual SFR mortgage loans include $680,000 of loans in the process of foreclosure.

The following table presents the loans HFI on nonaccrual status and the balance of such loans with no ALL, by loan segment and class, as of the dates indicated:

	*June 30, 2026*				*December 31, 2025*
	*Nonaccrual Loans*		*Total*		*Nonaccrual Loans*		*Total*
	*with no ALL*		*Nonaccrual Loans*		*with no ALL*		*Nonaccrual Loans*
Real estate:	*(dollars in thousands)*
Single-family residential mortgages	$	394	$	394	$	2,143	$	2,143
Commercial real estate		8,146		8,146		4,801		8,158
Construction and land development		8,072		8,072		27,994		27,994
Commercial:
Commercial and industrial		5,113		5,113		5,116		5,116
SBA		2,029		2,029		1,221		1,221
Other:		5		5		—		—
Total	$	23,759	$	23,759	$	41,275	$	44,632

The following tables present the amortized cost basis of individually evaluated collateral-dependent loans, by loan segment and class, and type of collateral which secures such loans as of the dates indicated.

	June 30, 2026
	Type of Collateral
Loan Class	Residential Real Estate		Commercial Real Estate		Business Assets		Total
Real Estate:	*(dollars in thousands)*
Single-family residential mortgages	$	394	$	—	$	—	$	394
Commercial real estate		720		7,426		—		8,146
Construction and land development		—		8,072		—		8,072
Commercial:
Commercial and industrial		5,113		—		—		5,113
SBA		—		1,631		398		2,029
Other		—		—		5		5
Total loans	$	6,227	$	17,129	$	403	$	23,759

	*December 31, 2025*
	*Type of Collateral*
Loan Class	*Residential Real Estate*		*Commercial Real Estate*		*Business Assets*		*Total*
Real Estate:	*(dollars in thousands)*
Single-family residential mortgages	$	2,143	$	—	$	—	$	2,143
Commercial real estate		—		8,158		—		8,158
Construction and land development		19,465		8,529		—		27,994
Commercial:
Commercial and industrial		5,116		—		—		5,116
SBA		—		1,136		85		1,221
Total loans	$	26,724	$	17,823	$	85	$	44,632

We did not recognize any interest income on nonaccrual loans while the loans were in nonaccrual status during 2026 or 2025.

Loan Modifications to Borrowers Experiencing Financial Difficulty - In cases where a borrower is experiencing financial difficulties, we may make certain concessionary modifications to the contractual terms. These concessions may include term extension, payment delay, principal forgiveness, interest rate reduction, or other actions intended to minimize potential losses. We may provide multiple types of concessions on one loan. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for loan losses. Loans modified to borrowers experiencing financial difficulty are individually evaluated for purposes of the allowance for loan losses.

The following tables present loan modifications made to borrowers experiencing financial difficulty by type of modification for the periods indicated:

	*Three Months Ended June 30, 2026*
	*Term Extension*		*Total Loan Modifications*
Loan Class	*Balance*		*Balance*		*% of Loan Class*
	*(dollars in thousands)*
Commercial real estate	$	664	$	664		0.05	%
Total	$	664	$	664

	*Six Months Ended June 30, 2026*
	*Term Extension*		*Payment Deferral*		*Total Loan Modifications*
	*Balance*		*Balance*		*Balance*		*% of Loan Class*
	*(dollars in thousands)*
Commercial real estate	$	664	$	—	$	664		0.05	%
SBA		—		656		656		1.32	%
Total	$	664	$	656	$	1,320

	*Three and Six Months Ended June 30, 2025*
	*Combination - Rate Reduction and Term Modification*		*Combination - Principal Reduction, Rate Reduction and Term Modification*		*Total Loan Modifications*
	*Balance*		*Balance*		*Balance*		*% of Loan Class*
	*(dollars in thousands)*
Commercial and industrial	$	4,732	$	—	$	4,732		3.42	%
Commercial real estate		—		3,717		3,717		0.29	%
Total	$	4,732	$	3,717	$	8,449

There were no modifications to borrowers experiencing financial difficulty during the three months ended March 31, 2025.

At June 30, 2026 and December 31, 2025, we had no commitments to lend to borrowers experiencing financial difficulty whose loans were modified during the period. We closely monitor the performance of loans modified to borrowers experiencing financial difficulty to understand the effectiveness of our modification efforts. The following tables present the payment status of loans that were modified during the preceding 12 month period, by loan class, as of the dates indicated.

	*June 30, 2026*
Loan Class		*Current*		*30-89 Days Past Due*		*90 Days or More Past Due*		*Total*
	*(dollars in thousands)*
Commercial and industrial	$	3,900	$	—	$	—	$	3,900
SBA		930		133		—		1,063
Commercial real estate		664		—		—		664
Total	$	5,494	$	133	$	—	$	5,627

	*June 30, 2025*
Loan Class	*Current*		*30-89 Days Past Due*		*90 Days or More Past Due*		*Total*
	*(dollars in thousands)*
Construction and land development	$	—	$	—	$	35,460	$	35,460
Commercial real estate		13,884		—		—		13,884
Commercial and industrial		4,708		—		—		4,708
Total	$	18,592	$	—	$	35,460	$	54,052

For the loans modified to borrowers experiencing financial difficulty during the 12 months prior to June 30, 2026, one SBA loan with a balance of $133,000 had a payment default of their modified terms in the three and six months ended June 30, 2026. For the loans modified to borrowers experiencing financial difficulty during the 12 months prior to June 30, 2025, two construction and land development loans totaling $35.5 million had a payment default of their modified terms in the three and six months ended June 30, 2025.