GUARANTEES AND MORTGAGE REPURCHASE LIABILITY	6 Months Ended
Jun. 30, 2026
Commitments and Contingencies Disclosure [Abstract]
GUARANTEES AND MORTGAGE REPURCHASE LIABILITY	GUARANTEES AND MORTGAGE REPURCHASE LIABILITY In the ordinary course of business, the Company has sold loans through the DUS program that are subject to a credit loss sharing arrangement. The Company has serviced the loans for Fannie Mae and shared in the risk of loss with Fannie Mae under the terms of the DUS contracts. Under the DUS program, the Company and Fannie Mae shared losses on a pro rata basis, where the Company was responsible for losses incurred up to one-third of the principal balance on each loan with two-thirds of the loss covered by Fannie Mae. For loans that have been sold through this program, a liability is recorded for this loss sharing arrangement under the accounting guidance for guarantees. On May 1, 2026, Mechanics Bank completed the previously announced sale of its DUS business line. As part of the completed sale, the repurchase liability associated with the prior sales transferred to the buyer. See Note 1, “Summary of Significant Accounting Policies—Asset Sale” for further details. At June 30, 2026 and December 31, 2025, the total unpaid principal balance of loans sold under this program was zero and $1.8 billion, respectively. The Company’s reserve liability related to this arrangement totaled zero and $554 thousand at June 30, 2026 and December 31, 2025, respectively. No actual losses were incurred for the quarter and six months ended June 30, 2026. Balances and activity from the DUS program are reported beginning on the Merger date of September 2, 2025. Therefore, there were no balances or activity for the quarter and six months ended June 30, 2025. In the ordinary course of business, the Company sells residential mortgage loans to government sponsored enterprises and other entities. Under the terms of these sales agreements, the Company has made representations and warranties that the loans sold meet certain requirements. The Company may be required to repurchase mortgage loans or indemnify loan purchasers due to defects in the origination process of the loan, such as documentation errors, underwriting errors and judgments, early payment defaults and fraud. The total unpaid principal balance of loans sold on a servicing-retained basis that were subject to the terms and conditions of these representations and warranties totaled $4.2 billion and $4.4 billion as of June 30, 2026 and December 31, 2025, respectively. At June 30, 2026 and December 31, 2025, the Company had recorded a mortgage repurchase liability for loans sold on a servicing-retained and servicing-released basis, which is included in accounts payable and other liabilities on the consolidated balance sheets of $674 thousand and $708 thousand, respectively. There was a net reversal of provision of zero and $32 thousand for the quarter and six months ended June 30, 2026, respectively, and zero and $2 thousand actual losses were incurred for the quarter and six months ended June 30, 2026, respectively. Balances from loans sold on a servicing retained basis and the mortgage repurchase liability are reported beginning on the Merger date of September 2, 2025. Therefore, there were no balances or activity for the quarter and six months ended June 30, 2025.

In the ordinary course of business, the Company has sold loans through the DUS program that are subject to a credit loss sharing arrangement. The Company has serviced the loans for Fannie Mae and shared in the risk of loss with Fannie Mae under the terms of the DUS contracts. Under the DUS program, the Company and Fannie Mae shared losses on a pro rata basis, where the Company was responsible for losses incurred up to one-third of the principal balance on each loan with two-thirds of the loss covered by Fannie Mae. For loans that have been sold through this program, a liability is recorded for this loss sharing arrangement under the accounting guidance for guarantees. On May 1, 2026, Mechanics Bank completed the previously announced sale of its DUS business line. As part of the completed sale, the repurchase liability associated with the prior sales transferred to the buyer. See Note 1, “Summary of Significant Accounting Policies—Asset Sale” for further details. At June 30, 2026 and December 31, 2025, the total unpaid principal balance of loans sold under this program was zero and $1.8 billion, respectively. The Company’s reserve liability related to this arrangement totaled zero and $554 thousand at June 30, 2026 and December 31, 2025, respectively. No actual losses were incurred for the quarter and six months ended June 30, 2026. Balances and activity from the DUS program are reported beginning on the Merger date of September 2, 2025. Therefore, there were no balances or activity for the quarter and six months ended June 30, 2025.

In the ordinary course of business, the Company sells residential mortgage loans to government sponsored enterprises and other entities. Under the terms of these sales agreements, the Company has made representations and warranties that the loans sold meet certain requirements. The Company may be required to repurchase mortgage loans or indemnify loan purchasers due to defects in the origination process of the loan, such as documentation errors, underwriting errors and judgments, early payment defaults and fraud. The total unpaid principal balance of loans sold on a servicing-retained basis that were subject to the terms and conditions of these representations and warranties totaled $4.2 billion and $4.4 billion as of June 30, 2026 and December 31, 2025, respectively.