As of June 30, 2026, 77.6% of the Company’s total loan portfolio consisted of real estate loans, with commercial real estate loans representing 74.8% of total loans. The Company’s real estate loans and construction loans are secured by real properties primarily located in California. As of June 30, 2026, $418.3 million, or 4.7% of the total commercial real estate loans included loans secured by farmland, compared to $424.5 million, or 6.46%, at December 31, 2025. The loans secured by farmland included $124.4 million for loans secured by dairy & livestock land and $293.8 million for loans secured by agricultural land at June 30, 2026, compared to $119.0 million for loans secured by dairy & livestock land and $305.5 million for loans secured by agricultural land at December 31, 2025. As of June 30, 2026, dairy & livestock and agribusiness loans of $281.0 million were comprised of $239.1 million of dairy & livestock loans and $41.9 million of agribusiness loans, compared to $431.6 million comprised of $386.1 million of dairy & livestock loans and $45.5 million of agribusiness loans at December 31, 2025.

In connection with the acquisition of Heritage, the Company’s factoring receivables are from the operations of BVF, the Bank's subsidiary, whose primary business is purchasing and collecting factored receivables on a nation-wide basis. Factored receivables are receivables that have been transferred by the originating organization and typically have not been subject to previous collection efforts. These receivables are acquired from a variety of companies, including but not limited to service providers, transportation companies, manufacturers, distributors, wholesalers, apparel companies, advertisers, and temporary staffing companies. As of June 30, 2026, the portfolio of factored receivables totaled $106.8 million and is included in the Company’s commercial loan portfolio.

At June 30, 2026 and December 31, 2025, loans totaling $7.56 billion and $6.47 billion, respectively, were pledged to secure available lines of credit from the FHLB and the Federal Reserve Bank.

There were no outstanding loans held-for-sale as of June 30, 2026 and December 31, 2025.

We monitor credit quality by evaluating various risk attributes and utilize such information in our evaluation of the appropriateness of the allowance for credit losses. Internal credit risk ratings, within our loan risk rating system, are the credit quality indicators that we most closely monitor.

An important element of our approach to credit risk management is our loan risk rating system. The originating officer assigns each loan an initial risk rating, which is reviewed and confirmed or changed, as appropriate, by credit management. Approvals are made based upon the amount of inherent credit risk specific to the transaction and are reviewed for appropriateness by senior line and credit management personnel. Credits are monitored by line and credit management personnel for deterioration or improvement in a borrower’s financial condition, which would impact the ability of the borrower to perform under the contract. Risk ratings are adjusted as necessary.

Loans are risk rated into the following categories: Pass, Special Mention, Substandard, Doubtful and Loss. Each of these groups is assessed for the proper amount to be used in determining the adequacy of our allowance for losses. These categories can be described as follows:

Pass — These loans, including loans on the Bank’s internal watch list, range from minimal credit risk to lower than average, but still acceptable, credit risk. Watch list loans usually require more than normal management attention. Loans on the watch list may involve borrowers with adverse financial trends, higher debt/equity ratios, or weaker liquidity positions, but not to the degree of being considered a defined weakness or problem loan where risk of loss may be apparent.

Special Mention — Loans assigned to this category have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in the deterioration of the repayment prospects for the asset or the Company’s credit position at some future date. Special mention assets are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification.

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

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

Loss — Loans classified as loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this asset with insignificant value even though partial recovery may be affected in the future.

The following tables summarize loans by type and origination year, according to our internal risk ratings as of the dates presented.


	Origination Year												Revolving loans amortized		Revolving loans converted to
June 30, 2026	2026		2025		2024		2023		2022		Prior		cost basis		term loans		Total
	(Dollars in thousands)
Commercial real estate loans:
Risk Rating:
Pass	$	640,306	$	874,826	$	411,808	$	595,138	$	1,361,103	$	4,381,752	$	313,107	$	37,298	$	8,615,338
Special Mention		1,897		6,926		18,359		27,424		64,299		171,873		17,283		9,461		317,522
Substandard		1,703		393		8,797		5,485		17,607		15,225		1,615		249		51,074
Total Commercial real estate loans:	$	643,906	$	882,145	$	438,964	$	628,047	$	1,443,009	$	4,568,850	$	332,005	$	47,008	$	8,983,934

Construction loans:
Risk Rating:
Pass	$	34,672	$	115,388	$	41,288	$	1,334	$	11,413	$	—	$	—	$	—	$	204,095
Special Mention		—		—		—		5,213		—		—		—		—		5,213
Substandard		—		—		—		—		—		685		—		—		685
Total Construction loans:	$	34,672	$	115,388	$	41,288	$	6,547	$	11,413	$	685	$	—	$	—	$	209,993

SBA loans:
Risk Rating:
Pass	$	42,002	$	74,306	$	42,455	$	20,085	$	57,765	$	181,425	$	2,563	$	1,050	$	421,651
Special Mention		—		—		—		630		—		8,735		—		—		9,365
Substandard		—		—		756		297		1,514		7,989		—		—		10,556
Total SBA loans:	$	42,002	$	74,306	$	43,211	$	21,012	$	59,279	$	198,149	$	2,563	$	1,050	$	441,572
Current YTD Period: Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	26	$	—	$	—	$	26

Commercial and industrial loans:
Risk Rating:
Pass	$	175,908	$	133,326	$	83,001	$	77,206	$	65,449	$	192,599	$	657,161	$	15,870	$	1,400,520
Special Mention		3,614		384		773		1,868		5,519		2,785		24,950		2,791		42,684
Substandard		—		2,885		1,784		2,837		1,184		8,393		10,658		7,939		35,680
Total Commercial and industrial loans:	$	179,522	$	136,595	$	85,558	$	81,911	$	72,152	$	203,777	$	692,769	$	26,600	$	1,478,884
Current YTD Period: Gross charge-offs	$	—	$	—	$	102	$	115	$	21	$	—	$	—	$	—	$	238


	Origination Year												Revolving loans amortized		Revolving loans converted to
June 30, 2026	2026		2025		2024		2023		2022		Prior		cost basis		term loans		Total
	(Dollars in thousands)
Dairy & livestock and agribusiness loans:
Risk Rating:
Pass	$	138	$	18	$	194	$	—	$	—	$	1,041	$	260,622	$	19	$	262,032
Special Mention		—		—		333		—		—		65		9,614		—		10,012
Substandard		—		—		—		—		—		—		8,950		—		8,950
Total Dairy & livestock and agribusiness loans:	$	138	$	18	$	527	$	—	$	—	$	1,106	$	279,186	$	19	$	280,994

Municipal lease finance receivables loans:
Risk Rating:
Pass	$	72	$	539	$	2,619	$	—	$	4,108	$	48,748	$	—	$	—	$	56,086
Total Municipal lease finance receivables loans:	$	72	$	539	$	2,619	$	—	$	4,108	$	48,748	$	—	$	—	$	56,086

SFR mortgage loans:
Risk Rating:
Pass	$	26,044	$	35,241	$	17,467	$	18,901	$	59,642	$	182,539	$	—	$	130	$	339,964
Special Mention		—		—		—		—		—		1,088		—		—		1,088
Substandard		—		—		—		—		—		288		—		—		288
Total SFR mortgage loans:	$	26,044	$	35,241	$	17,467	$	18,901	$	59,642	$	183,915	$	—	$	130	$	341,340

Consumer and other loans:
Risk Rating:
Pass	$	5,782	$	6,628	$	4,363	$	1,195	$	352	$	3,894	$	193,251	$	4,229	$	219,694
Special Mention		—		—		—		—		—		—		2,074		—		2,074
Substandard		—		—		—		—		—		271		1,917		296		2,484
Total Consumer and other loans:	$	5,782	$	6,628	$	4,363	$	1,195	$	352	$	4,165	$	197,242	$	4,525	$	224,252

Total Loans, at amortized cost:
Risk Rating:
Pass	$	924,924	$	1,240,272	$	603,195	$	713,859	$	1,559,832	$	4,991,998	$	1,426,704	$	58,596	$	11,519,380
Special Mention		5,511		7,310		19,465		35,135		69,818		184,546		53,921		12,252		387,958
Substandard		1,703		3,278		11,337		8,619		20,305		32,851		23,140		8,484		109,717
Total Loans at amortized cost:	$	932,138	$	1,250,860	$	633,997	$	757,613	$	1,649,955	$	5,209,395	$	1,503,765	$	79,332	$	12,017,055
Current YTD Period: Total gross charge-offs	$	—	$	—	$	102	$	115	$	21	$	26	$	—	$	—	$	264


	Origination Year												Revolving loans amortized		Revolving loans converted to
December 31, 2025	2025		2024		2023		2022		2021		Prior		cost basis		term loans		Total
	(Dollars in thousands)
Commercial real estate loans:
Risk Rating:
Pass	$	595,637	$	304,734	$	378,718	$	1,143,941	$	962,666	$	2,631,270	$	251,597	$	34,757	$	6,303,320
Special Mention		3,604		12,317		8,364		45,946		34,806		121,473		8,548		8,751		243,809
Substandard		1,456		—		3,327		7,266		4,578		10,108		531		—		27,266
Total Commercial real estate loans:	$	600,697	$	317,051	$	390,409	$	1,197,153	$	1,002,050	$	2,762,851	$	260,676	$	43,508	$	6,574,395

Construction loans:
Risk Rating:
Pass	$	15,742	$	11,829	$	—	$	10,241	$	—	$	—	$	—	$	—	$	37,812
Total Construction loans:	$	15,742	$	11,829	$	—	$	10,241	$	—	$	—	$	—	$	—	$	37,812

SBA loans:
Risk Rating:
Pass	$	48,707	$	25,775	$	12,077	$	44,550	$	45,057	$	100,201	$	—	$	—	$	276,367
Special Mention		—		—		—		—		—		391		—		—		391
Substandard		—		—		—		1,537		13		4,093		—		—		5,643
Total SBA loans:	$	48,707	$	25,775	$	12,077	$	46,087	$	45,070	$	104,685	$	—	$	—	$	282,401
Current YTD Period: Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	118	$	—	$	—	$	118

Commercial and industrial loans:
Risk Rating:
Pass	$	133,937	$	73,869	$	85,504	$	73,264	$	50,997	$	143,690	$	358,873	$	9,880	$	930,014
Special Mention		83		62		1,635		4,497		951		359		20,756		2,931		31,274
Substandard		2,900		—		1,399		641		138		2,561		990		3,714		12,343
Total Commercial and industrial loans:	$	136,920	$	73,931	$	88,538	$	78,402	$	52,086	$	146,610	$	380,619	$	16,525	$	973,631
Current YTD Period: Gross charge-offs	$	—	$	—	$	392	$	—	$	—	$	—	$	—	$	127	$	519


	Origination Year												Revolving loans amortized		Revolving loans converted to
December 31, 2025	2025		2024		2023		2022		2021		Prior		cost basis		term loans		Total
	(Dollars in thousands)
Dairy & livestock and agribusiness loans:
Risk Rating:
Pass	$	3	$	211	$	—	$	—	$	507	$	610	$	411,447	$	56	$	412,834
Special Mention		—		376		—		—		—		82		11,435		—		11,893
Substandard		—		—		—		—		—		—		6,850		—		6,850
Total Dairy & livestock and agribusiness loans:	$	3	$	587	$	—	$	—	$	507	$	692	$	429,732	$	56	$	431,577

Municipal lease finance receivables loans:
Risk Rating:
Pass	$	570	$	2,699	$	—	$	4,479	$	23,701	$	28,093	$	—	$	—	$	59,542
Total Municipal lease finance receivables loans:	$	570	$	2,699	$	—	$	4,479	$	23,701	$	28,093	$	—	$	—	$	59,542

SFR mortgage loans:
Risk Rating:
Pass	$	36,561	$	16,445	$	16,766	$	57,988	$	38,394	$	114,687	$	—	$	—	$	280,841
Special Mention		—		—		—		—		—		370		—		252		622
Substandard		—		—		—		—		—		303		—		—		303
Total SFR mortgage loans:	$	36,561	$	16,445	$	16,766	$	57,988	$	38,394	$	115,360	$	—	$	252	$	281,766

Consumer and other loans:
Risk Rating:
Pass	$	3,037	$	4,497	$	1,792	$	504	$	659	$	426	$	42,860	$	3,588	$	57,363
Special Mention		—		—		—		—		19		—		391		—		410
Substandard		—		—		—		—		—		—		—		296		296
Total Consumer and other loans:	$	3,037	$	4,497	$	1,792	$	504	$	678	$	426	$	43,251	$	3,884	$	58,069
Current YTD Period: Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	5	$	—	$	5

Total Loans, at amortized cost:
Risk Rating:
Pass	$	834,194	$	440,059	$	494,857	$	1,334,967	$	1,121,981	$	3,018,977	$	1,064,777	$	48,281	$	8,358,093
Special Mention		3,687		12,755		9,999		50,443		35,776		122,675		41,130		11,934		288,399
Substandard		4,356		—		4,726		9,444		4,729		17,065		8,371		4,010		52,701
Total Loans at amortized cost:	$	842,237	$	452,814	$	509,582	$	1,394,854	$	1,162,486	$	3,158,717	$	1,114,278	$	64,225	$	8,699,193
Current YTD Period: Gross charge-offs	$	—	$	—	$	392	$	—	$	—	$	118	$	5	$	127	$	642

The Company's allowance models calculate reserves over the average life of the loan, which includes the remaining time to maturity, adjusted for estimated prepayments applied as an adjustment to our commercial real estate and commercial and industrial loans. Our allowance for credit losses is based upon lifetime loss rate models developed from an estimation framework that uses historical lifetime loss experiences to derive loss rates at a collective pool level. We measure the expected credit losses on a collective (pooled) basis for those loans that share similar risk characteristics. We have three collective loan pools: Commercial Real Estate, Commercial and Industrial, and Consumer. A majority of the ACL relates to loans within the Commercial Real Estate and Commercial and Industrial methodologies, each evaluated on a collective basis. Our ACL amounts are largely driven by portfolio characteristics, including loss history, internal risk grading, various risk attributes, and the economic outlook for certain macroeconomic variables. Risk attributes for commercial real estate loans include original loan to value ratios, origination year, loan seasoning, and macroeconomic variables that include Real GDP growth, commercial real estate price index and unemployment rate. Risk attributes for commercial and industrial loans include internal risk ratings, borrower industry sector, loan credit spreads and macroeconomic variables that include unemployment rate and BBB spread. The macroeconomic variables for Consumer include unemployment rate and GDP. The Commercial Real Estate methodology is applied over commercial real estate loans, a portion of construction loans, and a portion of SBA loans. The Commercial and Industrial methodology is applied over a substantial portion of the Company’s commercial and industrial loans, all dairy & livestock and agribusiness loans, municipal lease receivables, as well as the remaining portion of SBA loans. The Consumer methodology is applied to SFR mortgage loans, consumer loans, as well as the remaining construction loans. In addition to determining the quantitative life of loan loss rate to be applied against the amortized cost basis of the portfolio segments, management reviews current conditions and forecasts to determine whether adjustments are needed to ensure that the life of loan loss rates reflect both the current state of the portfolio, and expectations for macroeconomic changes. The Company’s ACL estimate incorporates a reasonable and supportable forecast of various macroeconomic variables over the remaining average life of our loans. This forecast incorporates an assumption that each macroeconomic variable will revert to a long-term expectation, starting in years two through three, of the reasonable and supportable forecast period, with the reversion largely completed within the first five years of the forecast. The economic forecast is based on probability weighted scenarios to address macroeconomic uncertainty. Our methodology for assessing the appropriateness of the allowance is reviewed on a regular basis and considers overall risks in the Bank’s loan portfolio. Refer to Note 3 – Summary of significant Accounting Policies included in the 2025 Form 10-K for a more detailed discussion concerning the allowance for credit losses.

The ACL totaled $126.7 million at June 30, 2026, compared to $77.2 million at December 31, 2025. The $49.5 million increase in the ACL from December 31, 2025 to June 30, 2026 was primarily driven by the ACL recorded for loans acquired in the Heritage acquisition. At June 30, 2026, the ACL as a percentage of total loans and leases, at amortized cost, was 1.05%, compared to 0.89% at December 31, 2025. Our economic forecast continues to be a blend of multiple forecasts produced by Moody’s. These U.S. economic forecasts include a baseline forecast as well as multiple forecasts weighted for both upside and downside risks to the baseline forecast. The baseline forecast continues to represent the largest weighting in our multi-weighted forecast scenario, with upside and downside risks weighted among multiple forecasts. As of June 30, 2026, the resulting weighted forecast reflects Real GDP growth declining throughout 2026 and staying below 2% through 2027. The unemployment rate is forecasted to increase, with unemployment rate reaching 5% by the beginning of 2027 and remaining above 5% through 2028. Commercial real estate values are forecasted to continue their decline through the end of 2027, before experiencing growth in 2028.

Management believes that the ACL was appropriate at June 30, 2026 and December 31, 2025. Due to inflationary pressures, changing interest rates, lower commercial real estate values, international tariffs, and geopolitical events, no assurance can be given that economic conditions that adversely affect the Company’s service areas or other circumstances will not be reflected in increased provisions for credit losses in the future.

The following tables present the balance and activity related to the allowance for credit losses for held-for-investment loans by type for the periods presented.


	Three Months Ended June 30, 2026
	Ending Balance March 31, 2026		Charge-offs			Recoveries		Initial ACL on PCD & PSL Loans at Acquisition		Provision for (recapture of) credit losses			Ending Balance June 30, 2026
	(Dollars in thousands)
Commercial real estate	$	59,323	$	—		$	—	$	17,401	$	(659	)	$	76,065
Construction		816		—			—		1,593		647			3,056
SBA		2,821		(26	)		4		1,830		(61	)		4,568
Commercial and industrial		12,544		(115	)		—		24,065		94			36,588
Dairy & livestock and agribusiness		3,348		—			—		1		(267	)		3,082
Municipal lease finance receivables		264		—			—		—		(42	)		222
SFR mortgage		457		—			—		35		23			515
Consumer and other loans		597		—			—		1,703		265			2,565
Total allowance for credit losses	$	80,170	$	(141	)	$	4	$	46,628	$	—		$	126,661


	Three Months Ended June 30, 2025
	Ending Balance March 31, 2025		Charge-offs			Recoveries		Provision for (recapture of) credit losses			Ending Balance June 30, 2025
	(Dollars in thousands)
Commercial real estate	$	65,302	$	—		$	—	$	(760	)	$	64,542
Construction		238		—			6		(4	)		240
SBA		2,608		(32	)		19		471			3,066
Commercial and industrial		6,118		(392	)		155		476			6,357
Dairy & livestock and agribusiness		2,824		—			—		(270	)		2,554
Municipal lease finance receivables		210		—			—		10			220
SFR mortgage		427		—			—		50			477
Consumer and other loans		525		(5	)		—		27			547
Total allowance for credit losses	$	78,252	$	(429	)	$	180	$	—		$	78,003


	Six Months Ended June 30, 2026
	Ending Balance December 31, 2025		Charge-offs			Recoveries		Initial ACL on PCD & PSL Loans at Acquisition		Provision for (recapture of) Credit Losses			Ending Balance June 30, 2026
	(Dollars in thousands)
Commercial real estate	$	61,661	$	—		$	—	$	17,401	$	(2,997	)	$	76,065
Construction		593		—			—		1,593		870			3,056
SBA		2,720		(26	)		8		1,830		36			4,568
Commercial and industrial		8,438		(238	)		128		24,065		4,195			36,588
Dairy & livestock and agribusiness		2,486		—			—		1		595			3,082
Municipal lease finance receivables		251		—			—		—		(29	)		222
SFR mortgage		442		—			—		35		38			515
Consumer and other loans		570		—			—		1,703		292			2,565
Total allowance for credit losses	$	77,161	$	(264	)	$	136	$	46,628	$	3,000		$	126,661

We seek to manage asset quality and control credit risk through diversification of the loan portfolio and the application of policies designed to promote sound underwriting and loan monitoring practices. The Bank’s Credit Management Division is responsible for monitoring asset quality, establishing credit policies and procedures and enforcing the consistent application of these policies and procedures across the Bank. Reviews of nonperforming, past due loans and larger credits, designed to identify potential charges to the allowance for credit losses, are conducted on a regular and ongoing basis. These reviews consider such factors as the financial strength of borrowers and any guarantors, the value of the applicable collateral, loan loss experience, estimated credit losses, growth in the loan portfolio, prevailing economic conditions and other factors. Refer to Note 3 – Summary of Significant Accounting Policies, included in the 2025 Form 10-K, for additional discussion concerning the Bank’s policy for past due and nonperforming loans.

The following table presents the recorded investment in, and the aging of, past due loans (including nonaccrual loans), by type of loans as of the dates presented.


	June 30, 2026
	30-59 Days Past Due		60-89 Days Past Due		Greater than 89 Days Past Due		Total Past Due		Current		Total Loans and Financing Receivables
	(Dollars in thousands)
Commercial real estate
Owner occupied	$	2,122	$	—	$	4,745	$	6,867	$	2,843,703	$	2,850,570
Non-owner occupied		—		640		160		800		6,132,564		6,133,364
Construction
Speculative (1)		—		—		685		685		116,961		117,646
Non-speculative		—		—		—		—		92,347		92,347
SBA		785		—		918		1,703		439,868		441,571
Commercial and industrial		746		1,447		1,303		3,496		1,475,389		1,478,885
Dairy & livestock and agribusiness		—		—		—		—		280,994		280,994
Municipal lease finance receivables		—		—		—		—		56,086		56,086
SFR mortgage		—		—		—		—		341,340		341,340
Consumer and other loans		123		—		—		123		224,129		224,252
Total loans at amortized cost	$	3,776	$	2,087	$	7,811	$	13,674	$	12,003,381	$	12,017,055

It is the Company's policy to discontinue accruing interest when principal or interest payments are 90 days or more past due, unless the loan is both well secured and in the process of collection, or when full collection of principal and interest is not expected. The following table presents nonaccrual loans, including loans with no related allowance for credit losses, by loan type as of June 30, 2026 and December 31, 2025.

A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. The following table presents the recorded investment in collateral-dependent loans by type of loans as of the dates presented.

The allowance for off-balance sheet credit exposure relates to unfunded loan commitments, letters of credit, and undisbursed funds on lines of credit and is recorded in other liabilities on the consolidated balance sheets, with the related expense in other noninterest expense. The Company estimates expected credit losses associated with off-balance-sheet credit exposures using a methodology consistent with that used for the loan portfolio. As of June 30, 2026 and December 31, 2025, the reserve for unfunded loan commitments was $13.0 million and $8.3 million, respectively. The increase was primarily attributable to the initial reserve established for the unfunded commitments acquired in the Heritage acquisition though the provision for unfunded loan commitments. The provision for unfunded loan commitments was $4.3 million and $4.8 million, respectively, for the three and six months ended June 30, 2026, compared to no provision and a $500,000 provision for the three and six months ended June 30, 2025, respectively.

There were two loans to borrowers experiencing financial difficulty that were modified during the three months ended June 30, 2026 with an amortized cost totaling $2.7 million as of June 30, 2026, including one commercial real estate loan for $1.7 million and one dairy & livestock loan for $1.0 million.


	Amortized Cost Basis		% of Total Class of Financing Receivables			Financial Effect
Six months ended June 30, 2026
Term Extension
Commercial and industrial	$	9,677		0.08	%	Added a weighted-average 1 year to the life of loans, which reduced monthly payment amounts for the borrowers.
Dairy & livestock and agribusiness		6,034		0.05	%	Added a weighted-average 1 year to the life of loans, which reduced monthly payment amounts for the borrowers.
Commercial real estate loans		1,703		0.01	%	Added a weighted-average 1 year to the life of loans, which reduced monthly payment amounts for the borrowers.
Total Modified	$	17,414

The tables below reflect the amortized cost of loans by type made to borrowers experiencing financial difficulty that were modified as of June 30, 2025 by loan class and modification type.


	Amortized Cost Basis		% of Total Class of Financing Receivables			Financial Effect
June 30, 2025
Term Extension
Commercial real estate loans	$	7,193		0.09	%	Added a weighted-average 1.9 years to the life of loans, which reduced monthly payment amounts for the borrowers.
Commercial and industrial		481		0.01	%	Added a weighted-average 1.2 years to the life of loans, which reduced monthly payment amounts for the borrowers.
Dairy & livestock and agribusiness		395		0.00	%	Added a weighted-average 1.6 years to the life of loans, which reduced monthly payment amounts for the borrowers.
Total	$	8,069

Term Extension and Interest Rate Reduction
Commercial real estate loans	$	677		0.01	%	Added a weighted-average 7.6 years to the life of loans, which reduced monthly payment amounts for the borrowers; reduced weighted-average contractual interest rate from 10.00% to 7.25%.
Commercial and industrial		783		0.01	%	Added a weighted-average 1.1 years to the life of loans, which reduced monthly payment amounts for the borrowers; reduced weighted-average contractual interest rate from 8.50% to 7.75%.
Total		1,460
Total Modified	$	9,529

During the three and six months ended June 30, 2026 and 2025, there was no modified loans that subsequently defaulted within twelve months of the modification date. Payment default is defined as movement to nonaccrual (nonperforming) status, foreclosure or charge-off, whichever occurs first.