v3.26.1
Loans and Lease Finance Receivables and Allowance for Credit Losses (Tables)
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
Summary of Components of Loans and Lease Finance Receivables, Excluding PCI Loans

The following table provides a summary of total loans and lease finance receivables by type.

 

 

June 30, 2026

 

 

December 31, 2025

 

 

(Dollars in thousands)

 

Commercial real estate

$

8,983,934

 

 

$

6,574,395

 

Construction

 

209,993

 

 

 

37,812

 

SBA

 

441,572

 

 

 

282,401

 

Commercial and industrial

 

1,478,884

 

 

 

973,631

 

Dairy & livestock and agribusiness

 

280,994

 

 

 

431,577

 

Municipal lease finance receivables

 

56,086

 

 

 

59,542

 

SFR mortgage

 

341,340

 

 

 

281,766

 

Consumer and other loans

 

224,252

 

 

 

58,069

 

Total loans, at amortized cost

 

12,017,055

 

 

 

8,699,193

 

Less: Allowance for credit losses

 

(126,661

)

 

 

(77,161

)

 Total loans and lease finance receivables, net

$

11,890,394

 

 

$

8,622,032

 

 
Summary of Loans by Type and Origination Year, According to our Internal Risk Ratings

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

 
Summary of Balance and Activity Related to Allowance for Loan Losses for Held-for-Investment Loans by Type

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

 

 

 

 

 

Six Months Ended June 30, 2025

 

 

Ending Balance December 31, 2024

 

 

Charge-offs

 

 

Recoveries

 

 

(Recapture of) Provision for Credit Losses

 

 

Ending Balance June 30, 2025

 

 

(Dollars in thousands)

 

Commercial real estate

$

66,237

 

 

$

—

 

 

$

—

 

 

$

(1,695

)

 

$

64,542

 

Construction

 

312

 

 

 

—

 

 

 

12

 

 

 

(84

)

 

 

240

 

SBA

 

2,629

 

 

 

(51

)

 

 

41

 

 

 

447

 

 

 

3,066

 

Commercial and industrial

 

6,093

 

 

 

(413

)

 

 

297

 

 

 

380

 

 

 

6,357

 

Dairy & livestock and agribusiness

 

3,610

 

 

 

—

 

 

 

—

 

 

 

(1,056

)

 

 

2,554

 

Municipal lease finance
   receivables

 

205

 

 

 

—

 

 

 

—

 

 

 

15

 

 

 

220

 

SFR mortgage

 

424

 

 

 

—

 

 

 

—

 

 

 

53

 

 

 

477

 

Consumer and other loans

 

612

 

 

 

(5

)

 

 

—

 

 

 

(60

)

 

 

547

 

Total allowance for credit losses

$

80,122

 

 

$

(469

)

 

$

350

 

 

$

(2,000

)

 

$

78,003

 

 

 
Summary of Recorded Investment in, and Aging of, Past Due and Nonaccrual Loans, Excluding PCI Loans by Class of 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

 

 

 

 

December 31, 2025

 

 

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

$

2,887

 

 

$

—

 

 

$

43

 

 

$

2,930

 

 

$

2,330,311

 

 

$

2,333,241

 

Non-owner occupied

 

—

 

 

 

—

 

 

 

4,143

 

 

 

4,143

 

 

 

4,237,011

 

 

 

4,241,154

 

Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Speculative (1)

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

12,151

 

 

 

12,151

 

Non-speculative

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

25,661

 

 

 

25,661

 

 SBA

 

30

 

 

 

—

 

 

 

21

 

 

 

51

 

 

 

282,350

 

 

 

282,401

 

 Commercial and industrial

 

261

 

 

 

—

 

 

 

478

 

 

 

739

 

 

 

972,892

 

 

 

973,631

 

 Dairy & livestock and agribusiness

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

431,577

 

 

 

431,577

 

 Municipal lease finance receivables

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

59,542

 

 

 

59,542

 

 SFR mortgage

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

281,766

 

 

 

281,766

 

 Consumer and other loans

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

58,069

 

 

 

58,069

 

Total loans at amortized cost

$

3,178

 

 

$

—

 

 

$

4,685

 

 

$

7,863

 

 

$

8,691,330

 

 

$

8,699,193

 

 

(1)
Speculative construction loans are generally for properties where there is no identified buyer or renter.

 

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.

 

 

June 30, 2026

 

 

Nonaccrual with No Allowance for Credit Losses

 

 

Total Nonaccrual
(1) (3)

 

 

Loans Past Due Over 89 Days Still Accruing

 

 

(Dollars in thousands)

 

Commercial real estate

 

 

 

 

 

 

 

 

Owner occupied

$

4,496

 

 

$

4,745

 

 

$

—

 

Non-owner occupied

 

160

 

 

 

160

 

 

 

—

 

Construction

 

 

 

 

 

 

 

 

Speculative (2)

 

685

 

 

 

685

 

 

 

 

 SBA

 

591

 

 

 

918

 

 

 

—

 

 Commercial and industrial

 

3,427

 

 

 

9,672

 

 

 

—

 

 Consumer and other loans

 

462

 

 

 

462

 

 

 

 

Total loans at amortized cost

$

9,821

 

 

$

16,642

 

 

$

—

 

 

(1)
As of June 30, 2026, $6.7 million of nonaccruing loans were current, $670,000 were 30-59 days past due, $1.4 million were 60-89 days past due, and $7.8 million were 90+ days past due.
(2)
Speculative construction loans are generally for properties where there is no identified buyer or renter.
(3)
Excludes $3,000 of guaranteed portion of nonaccrual SBA loans that are in process of collection.

 

 

December 31, 2025

 

 

Nonaccrual with No Allowance for Credit Losses

 

 

Total Nonaccrual
(1) (2)

 

 

Loans Past Due Over 89 Days Still Accruing

 

 

(Dollars in thousands)

 

Commercial real estate

 

 

 

 

 

 

 

 

Owner occupied

$

43

 

 

$

43

 

 

$

—

 

Non-owner occupied

 

4,143

 

 

 

4,143

 

 

 

—

 

 SBA

 

21

 

 

 

21

 

 

 

—

 

 Commercial and industrial

 

478

 

 

 

478

 

 

 

—

 

Total loans at amortized cost

$

4,685

 

 

$

4,685

 

 

$

—

 

 

(1)
As of December 31, 2025, $4.7 million were 90+ days past due.
(2)
Excludes $3,000 of guaranteed portion of nonaccrual SBA loans that are in process of collection.
Summary of Pledged Assets not Separately Reported on Statement of Financial Position The following table presents the recorded investment in collateral-dependent loans by type of loans as of the dates presented.

 

 

June 30, 2026

 

 

Number of Loans

 

 

Real Estate

 

 

Business Assets

 

 

Other

 

 

Dependent on
Collateral

 

 

(Dollars in thousands)

 

 

Commercial real estate

$

5,101

 

 

$

—

 

 

$

—

 

 

 

6

 

Construction

 

685

 

 

 

—

 

 

 

—

 

 

 

1

 

SBA

 

919

 

 

 

—

 

 

 

1,002

 

 

 

7

 

Commercial and industrial

 

—

 

 

 

2,496

 

 

 

6,726

 

 

 

24

 

Consumer and other loans

 

462

 

 

 

—

 

 

 

—

 

 

 

1

 

Total collateral-dependent loans

$

7,167

 

 

$

2,496

 

 

$

7,728

 

 

 

39

 

 

 

 

December 31, 2025

 

 

Number of Loans

 

 

Real Estate

 

 

Business Assets

 

 

Other

 

 

Dependent on
Collateral

 

 

(Dollars in thousands)

 

 

Commercial real estate

$

4,143

 

 

$

—

 

 

$

—

 

 

 

1

 

SBA

 

21

 

 

 

—

 

 

 

—

 

 

 

1

 

Commercial and industrial

 

—

 

 

 

477

 

 

 

—

 

 

 

3

 

Total collateral-dependent loans

$

4,164

 

 

$

477

 

 

$

—

 

 

 

5

 
Summary of Amortized Cost of Loans Activity

The tables below reflect the amortized cost of loans by type made to borrowers experiencing financial difficulty that were modified during the three and six months ended June 30, 2026 by loan class and modification type.

 

 

 

Amortized Cost Basis

 

 

% of Total Class of Financing Receivables

 

 

Financial Effect

Three months ended June 30, 2026

 

 

 

 

 

 

 

 

Term Extension

 

 

 

 

 

 

 

 

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.

Dairy & livestock and agribusiness

 

 

999

 

 

 

0.01

%

 

Added a weighted-average 1 year to the life of loans, which reduced monthly payment amounts for the borrowers.

   Total Modified

 

$

2,702

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 
Summary of Recorded Investments or Past Due Loans At Amortized Cost

The following table presents the recorded investment in, and the aging of, past due loans at amortized cost (including nonaccrual loans), by type of loans, made to borrowers experiencing financial difficulty as of June 30, 2026 and June 30, 2025.

 

 

 

Payment Status (amortized cost basis)

 

 

 

Current

 

 

30-89 Days
Past Due

 

 

90+ Days
Past Due

 

June 30, 2026

 

(Dollars in thousands)

 

Commercial real estate loans

 

$

1,703

 

 

$

—

 

 

$

—

 

Commercial and industrial

 

 

16,724

 

 

 

—

 

 

 

—

 

Dairy & livestock and agribusiness

 

 

6,034

 

 

 

—

 

 

 

—

 

   Total

 

$

24,461

 

 

$

—

 

 

$

—

 

 

 

 

 

 

Current

 

 

30-89 Days
Past Due

 

 

90+ Days
Past Due

 

June 30, 2025

 

(Dollars in thousands)

 

Commercial real estate loans

 

$

7,870

 

 

$

—

 

 

$

—

 

Commercial and industrial

 

 

1,264

 

 

 

—

 

 

 

—

 

Dairy & livestock and agribusiness

 

 

395

 

 

 

—

 

 

 

—

 

   Total

 

$

9,529

 

 

$

—

 

 

$

—