v3.26.1
LOANS AND CREDIT QUALITY (Tables)
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
Schedule of Loans Held for Investment
The loan receivables portfolio consisted of the following as of the dates indicated:
(in thousands)June 30, 2026December 31, 2025
Commercial and industrial$439,814 $482,170 
Commercial real estate
Multifamily5,223,356 5,355,252 
Non-owner occupied1,614,883 1,740,277 
Owner occupied512,474 689,079 
Construction and land development360,668 493,992 
Residential real estate4,107,867 3,970,803 
Auto510,232 791,012 
Other consumer806,902 654,351 
Total loan receivables before allowance for credit losses
13,576,196 14,176,936 
Allowance for credit losses on loans (152,601)(153,319)
Net loan receivables$13,423,595 $14,023,617 
Activity in Allowance for Credit Losses
The following tables present the activity in the allowance for credit losses on loans by portfolio segment:
(in thousands)Commercial and IndustrialCommercial Real EstateResidential Real EstateAutoOther ConsumerTotal
Quarter Ended June 30, 2026
Allowance for credit losses on loans
Beginning balance$8,860 $120,758 $13,621 $11,446 $2,111 $156,796 
Provision (reversal of provision) for credit losses1,160 3,502 (5,868)45 257 (904)
Loans charged off(105)(68)— (5,573)(562)(6,308)
Recoveries235 85 6 2,502 189 3,017 
Ending balance$10,150 $124,277 $7,759 $8,420 $1,995 $152,601 
(in thousands)Commercial and IndustrialCommercial Real EstateResidential Real EstateAutoOther ConsumerTotal
Quarter Ended June 30, 2025
Allowance for credit losses on loans
Beginning balance$4,297 $34,995 $4,763 $28,935 $2,525 $75,515 
Provision (reversal of provision) for credit losses(989)(1,396)214 2,219 309 357 
Loans charged off(105)— — (9,253)(591)(9,949)
Recoveries253 — — 1,966 192 2,411 
Ending balance$3,456 $33,599 $4,977 $23,867 $2,435 $68,334 
(in thousands)Commercial and IndustrialCommercial Real EstateResidential Real EstateAutoOther ConsumerTotal
Six Months Ended June 30, 2026
Allowance for credit losses on loans
Beginning balance$8,417 $114,326 $13,294 $15,003 $2,279 $153,319 
Provision (reversal of provision) for credit losses1,568 9,823 (5,894)610 582 6,689 
Loans charged off(236)(68)(1)(11,993)(1,215)(13,513)
Recoveries401 196 360 4,800 349 6,106 
Ending balance$10,150 $124,277 $7,759 $8,420 $1,995 $152,601 
(in thousands)Commercial and IndustrialCommercial Real EstateResidential Real EstateAutoOther ConsumerTotal
Six Months Ended June 30, 2025
Allowance for credit losses on loans
Beginning balance$4,869 $35,097 $4,656 $41,282 $2,654 $88,558 
Provision (reversal of provision) for credit losses(1,447)(1,498)321 (1,410)639 (3,395)
Loans charged off(222)— — (20,759)(1,185)(22,166)
Recoveries256 — — 4,754 327 5,337 
Ending balance$3,456 $33,599 $4,977 $23,867 $2,435 $68,334 
In addition to the ACL for LHFI, the Company maintains a separate allowance for unfunded loan commitments, which is included in interest payable and other liabilities on the consolidated balance sheets. The following table presents changes in the allowance for credit losses on unfunded lending commitments:
Quarter Ended June 30,Six Months Ended June 30,
(in thousands)2026202520262025
Allowance for credit losses on unfunded lending commitments
Beginning balance$7,289 $4,460 $7,115 $4,366 
Provision (reversal of provision) for credit losses(1,863)(725)(1,689)(631)
Ending balance
$5,426 $3,735 $5,426 $3,735 
Schedule of Loans on Nonaccrual with no Related Allowance for Credit Loss
The following table presents the amortized cost of nonaccrual loans and loans past due 90 days or more and still accruing by class of loans as of June 30, 2026 and December 31, 2025:
June 30, 2026
(in thousands)Nonaccrual With No Allowance for Credit LossTotal NonaccrualLoans Past Due 90 Days or More Still Accruing
Commercial and industrial$3,541 $10,758 $— 
Commercial real estate
Multifamily1,725 1,725 — 
Non-owner occupied4,425 4,425 — 
Owner occupied694 694 — 
Construction and land development392 15,564 — 
Residential real estate5,002 12,161 6,543 
Auto— 3,212 — 
Other consumer— 18 — 
Total
$15,779 $48,557 $6,543 
December 31, 2025
(in thousands)Nonaccrual With No Allowance for Credit LossTotal NonaccrualLoans Past Due 90 Days or More Still Accruing
Commercial and industrial$5,310 $11,196 $— 
Commercial real estate
Multifamily3,387 3,387 — 
Non-owner occupied953 12,539 — 
Owner occupied1,644 1,870 — 
Construction and land development140 2,962 — 
Residential real estate3,766 6,765 3,943 
Auto— 4,143 — 
Other consumer— 1 — 
Total
$15,200 $42,863 $3,943 
Schedule of Collateral Dependent Loans
The following tables present the amortized cost of collateral-dependent loans by class and collateral type as of June 30, 2026 and December 31, 2025:
June 30, 2026
(in thousands)AutoEquipmentLandMultifamilyRetail BuildingSingle Family ResidentialOther non-real estateTotal Loans
Commercial and industrial$— $— $4,153 $— $3,259 $998 $758 $9,168 
Commercial real estate
Multifamily— — — 16,229 — — — 16,229 
Non-owner occupied— — — — 4,425 — — 4,425 
Owner occupied— — — — 694 — — 694 
Construction and land development— — 15,564 — — — — 15,564 
Residential real estate— — — — — 5,002 — 5,002 
Total
$— $— $19,717 $16,229 $8,378 $6,000 $758 $51,082 
December 31, 2025
(in thousands)AutoEquipmentLandMultifamilyRetail BuildingSingle Family ResidentialOther non-real estateTotal Loans
Commercial and industrial$— $— $— $— $3,819 $— $4,674 $8,493 
Commercial real estate
Multifamily— — — 17,869 — — — 17,869 
Non-owner occupied— — — — 12,539 — — 12,539 
Owner occupied— — — — 742 — 1,128 1,870 
Construction and land development— — 2,962 — — — — 2,962 
Residential real estate— — — 157 — 4,121 — 4,278 
Total
$— $— $2,962 $18,026 $17,100 $4,121 $5,802 $48,011 
Schedule of Loans Past Due
The following tables present the aging of the amortized cost in past due loans as of June 30, 2026 and December 31, 2025 by class of loans:
June 30, 2026
(in thousands)30-59 Days Past Due60-89 Days Past DueGreater than 89 Days Past DueTotal Past DueLoans Not Past DueTotal Loans
Commercial and industrial$997 $89 $9,344 $10,430 $429,384$439,814
Commercial real estate
Multifamily— 3,685 1,724 5,409 5,217,9475,223,356
Non-owner occupied7,666 12,759 — 20,425 1,594,4581,614,883
Owner occupied448 — 264 712 511,762512,474
Construction and land development389 — 15,312 15,701 344,967360,668
Residential real estate1,161 7,359 12,368 20,888 4,086,9794,107,867
Auto15,078 4,499 1,860 21,437 488,795510,232
Other consumer234 165 16 415 806,487806,902
Total$25,973 $28,556 $40,888 $95,417 $13,480,779 $13,576,196 
December 31, 2025
(in thousands)30-59 Days Past Due60-89 Days Past DueGreater than 89 Days Past DueTotal Past DueLoans Not Past DueTotal Loans
Commercial and industrial$3,277 $1,066 $8,024 $12,367 $469,803$482,170 
Commercial real estate
Multifamily— — 1,614 1,614 5,353,6385,355,252 
Non-owner occupied50 — 11,586 11,636 1,728,6411,740,277 
Owner occupied— 1,349 226 1,575 687,504689,079 
Construction and land development— — 2,962 2,962 491,030493,992 
Residential real estate14,274 4,944 7,187 26,405 3,944,3983,970,803 
Auto25,984 7,078 3,086 36,148 754,864791,012 
Other consumer288 149 1 438 653,913654,351 
Total$43,873 $14,586 $34,686 $93,145 $14,083,791 $14,176,936 
Schedule of Loan Modifications
The following tables present the amortized cost of loans at June 30, 2026 and 2025 that were both experiencing financial difficulty and modified during the quarters and six months ended June 30, 2026 and 2025, by class and by type of modification. The percentage of the amortized cost of loans that were modified to borrowers in financial distress as compared to the amortized cost of each class of financing receivable is also presented below. There were no loans that were both experiencing financial difficulty and modified during the quarter ended June 30, 2025.
Quarter Ended June 30, 2026
(in thousands)Principal ForgivenessPayment DelayTerm ExtensionInterest Rate ReductionCombined Term Extension and Principal ForgivenessCombined Term Extension and Interest Rate ReductionCombined Payment Delay and Term ExtensionTotal Class of Financing Receivable
Residential real estate$— $— $— $— $— $— $767 0.02 %
Total
$— $— $— $— $— $— $767 0.01 %
Six Months Ended June 30, 2026
(in thousands)Principal ForgivenessPayment DelayTerm ExtensionInterest Rate ReductionCombined Term Extension and Principal ForgivenessCombined Term Extension and Interest Rate ReductionCombined Payment Delay and Term ExtensionTotal Class of Financing Receivable
Commercial and industrial$— $— $12 $— $— $— $— 0.00 %
Residential real estate— — — — — — 1,305 0.03 %
Total$— $— $12 $— $— $— $1,305 0.01 %
Six Months Ended June 30, 2025
(in thousands)Principal ForgivenessPayment DelayTerm ExtensionInterest Rate ReductionCombined Term Extension and Principal ForgivenessCombined Term Extension and Interest Rate ReductionCombined Payment Delay and Term ExtensionTotal Class of Financing Receivable
Commercial and industrial$— $— $113 $— $— $— $— 0.04 %
Total$— $— $113 $— $— $— $— 0.00 %
The following tables present the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the quarter ended June 30, 2026. There were no loans that were both experiencing financial difficulty and modified during the quarter ended June 30, 2025.
Quarter Ended June 30, 2026
(dollars in thousands)Principal ForgivenessWeighted-Average Payment Delay <months>Weighted-Average Interest Rate ReductionWeighted-Average Term Extension <months>
Residential real estate$— 125— %125
The following tables present the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the six months ended June 30, 2026 and 2025:
Six Months Ended June 30, 2026
(dollars in thousands)Principal ForgivenessWeighted-Average Payment Delay <months>Weighted-Average Interest Rate ReductionWeighted-Average Term Extension <months>
Commercial and industrial$— —— %24
Residential real estate— 81— %81
Six Months Ended June 30, 2025
(dollars in thousands)Principal ForgivenessWeighted-Average Payment Delay <months>Weighted-Average Interest Rate ReductionWeighted-Average Term Extension <months>
Commercial and industrial$— —— %60
Financing Receivable, Modified, Past Due
The following tables present the payment status of loans that were modified in the last 12 months, with related amortized cost balances, as of the dates indicated:
Payment Status (Amortized Cost)
At June 30, 2026
(in thousands)Current30-59 Days Past Due60-89 Days Past DueGreater than 89 Days Past DueTotal
Commercial and industrial$787 $— $— $4,153 $4,940 
Commercial real estate
Non-owner occupied17,176 — — — 17,176 
Construction and land development— — — 2,772 2,772 
Residential real estate1,910 — — 1,155 3,065 
Total$19,873 $— $— $8,080 $27,953 
Payment Status (Amortized Cost)
At June 30, 2025
(in thousands)Current30-59 Days Past Due60-89 Days Past DueGreater than 89 Days Past DueTotal
Commercial and industrial$592 $— $— $— $592 
Total$592 $— $— $— $592 
Schedule of Loan Modifications, Payment Status
Schedule of Credit Quality Indicators
The following table presents the amortized cost by loan risk category and origination year for commercial and industrial and commercial real estate loan classes at June 30, 2026 and December 31, 2025. In addition, year-to-date charge-offs for 2026 and 2025 are presented by origination year.
(in thousands)20262025202420232022Prior Revolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
June 30, 2026
Commercial and industrial
Risk rating
Pass$8,393 $17,948 $54,660 $48,490 $19,799 $101,640 $144,296 $— $395,226 
Special mention— — 83 — 428 918 6,510 — 7,939 
Substandard— 147 627 118 22,221 9,317 4,219 — 36,649 
Doubtful— — — — — — — — — 
Total$8,393 $18,095 $55,370 $48,608 $42,448 $111,875 $155,025 $— $439,814 
Year-to-date gross charge-offs$— $105 $— $— $— $6 $125 $— $236 
Commercial real estate - multifamily
Risk rating
Pass$83,189 $59,021 $169,005 $404,100 $2,181,122 $2,055,845 $20,297 $— $4,972,579 
Special mention— — — 20,550 22,951 86,769 — — 130,270 
Substandard— — — 6,565 70,275 43,667 — — 120,507 
Doubtful— — — — — — — — — 
Total$83,189 $59,021 $169,005 $431,215 $2,274,348 $2,186,281 $20,297 $— $5,223,356 
Year-to-date gross charge-offs$— $— $— $— $— $— $— $— $— 
Commercial real estate - non-owner occupied
Risk rating
Pass$5,161 $10,987 $13,635 $34,741 $367,768 $1,082,950 $8,650 $— $1,523,892 
Special mention— — — — — 22,410 — — 22,410 
Substandard— — — — — 68,581 — — 68,581 
Doubtful— — — — — — — — — 
Total$5,161 $10,987 $13,635 $34,741 $367,768 $1,173,941 $8,650 $— $1,614,883 
Year-to-date gross charge-offs$— $— $— $— $— $68 $— $— $68 
Commercial real estate - owner occupied
Risk rating
Pass$906 $26,029 $12,243 $19,213 $81,334 $298,828 $11,189 $— $449,742 
Special mention— — — 1,623 8,315 37,400 — — 47,338 
Substandard— — — — 8,754 6,640 — — 15,394 
Doubtful— — — — — — — — — 
Total$906 $26,029 $12,243 $20,836 $98,403 $342,868 $11,189 $— $512,474 
Year-to-date gross charge-offs$— $— $— $— $— $— $— $— $— 
Commercial real estate - construction and land development
Risk rating
Pass$84,362 $180,867 $41,274 $19,324 $8,883 $9,854 $540 $— $345,104 
Special mention— — — — — — — — — 
Substandard— — — — — 15,564 — — 15,564 
Doubtful— — — — — — — — — 
Total$84,362 $180,867 $41,274 $19,324 $8,883 $25,418 $540 $— $360,668 
Year-to-date gross charge-offs$— $— $— $— $— $— $— $— $— 
(in thousands)
20252024202320222021PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
December 31, 2025
Commercial and industrial
Risk rating
Pass$22,961 $40,427 $52,574 $24,657 $19,914 $78,344 $200,344 $225 $439,446 
Special mention— 104 — 472 162 2,828 — — 3,566 
Substandard64 634 65 23,257 400 14,487 251 — 39,158 
Doubtful— — — — — — — — — 
Total$23,025 $41,165 $52,639 $48,386 $20,476 $95,659 $200,595 $225 $482,170 
Year-to-date gross charge-offs$40 $75 $47 $6,772 $230 $19 $1,215 $— $8,398 
Commercial real estate - multifamily
Risk rating
Pass$59,536 $177,297 $458,411 $2,224,002 $1,177,242 $1,031,448 $18,160 $211 $5,146,307 
Special mention— — — 32,156 22,062 35,772 — — 89,990 
Substandard— — 6,558 68,486 24,403 19,508 — — 118,955 
Doubtful— — — — — — — — — 
Total$59,536 $177,297 $464,969 $2,324,644 $1,223,707 $1,086,728 $18,160 $211 $5,355,252 
Year-to-date gross charge-offs$— $— $— $— $— $— $— $— $— 
Commercial real estate -non-owner occupied
Risk rating
Pass$7,032 $13,753 $31,688 $371,096 $138,150 $1,057,437 $6,659 $257 $1,626,072 
Special mention— — — — — 32,308 — — 32,308 
Substandard— — — — — 81,897 — — 81,897 
Doubtful— — — — — — — — — 
Total$7,032 $13,753 $31,688 $371,096 $138,150 $1,171,642 $6,659 $257 $1,740,277 
Year-to-date gross charge-offs$— $— $— $— $— $428 $— $— $428 
Commercial real estate - owner-occupied
Risk rating
Pass$30,541 $12,420 $27,707 $108,047 $73,141 $371,660 $9,045 $243 $632,804 
Special mention— — — 1,660 6,954 28,003 — — 36,617 
Substandard— — — 8,836 3,752 7,070 — — 19,658 
Doubtful— — — — — — — — — 
Total$30,541 $12,420 $27,707 $118,543 $83,847 $406,733 $9,045 $243 $689,079 
Year-to-date gross charge-offs$— $— $— $— $— $— $— $— $— 
Commercial real estate - construction and land development
Risk rating
Pass$272,783 $128,650 $59,371 $13,377 $3,112 $12,937 $200 $600 $491,030 
Special mention— — — — — — — — — 
Substandard— — — — — 2,962 — — 2,962 
Doubtful— — — — — — — — — 
Total$272,783 $128,650 $59,371 $13,377 $3,112 $15,899 $200 $600 $493,992 
Year-to-date gross charge-offs$— $— $— $— $— $— $— $— $— 
The Company considers the performance of the loan portfolio and its impact on the allowance for credit losses. For residential and consumer loan classes, the Company also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the amortized cost in residential and consumer loans based upon year of origination at June 30, 2026 and December 31, 2025. In addition, year-to-date charge-offs for 2026 and 2025 are presented by origination year.
(in thousands)
20262025202420232022PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
June 30, 2026
Residential real estate
Payment performance
Performing$311,543 $457,561 $172,152 $86,707 $594,309 $1,892,339 $542,296 $32,256 $4,089,163 
Nonperforming— — — 417 740 11,268 5,182 1,097 18,704 
Total $311,543 $457,561 $172,152 $87,124 $595,049 $1,903,607 $547,478 $33,353 $4,107,867 
Year-to-date gross charge-offs$— $— $— $— $— $1 $— $— $1 
Auto
Payment performance
Performing$— $128 $169 $35,879 $325,127 $145,717 $— $— $507,020 
Nonperforming— — — 251 2,036 925 — — 3,212 
Total$— $128 $169 $36,130 $327,163 $146,642 $— $— $510,232 
Year-to-date gross charge-offs$— $— $— $609 $7,579 $3,805 $— $— $11,993 
Other consumer
Payment performance
Performing$199,909 $211,779 $152,868 $140,522 $62,114 $35,828 $3,864 $— $806,884 
Nonperforming— 3 — — — — 15 — 18 
Total$199,909 $211,782 $152,868 $140,522 $62,114 $35,828 $3,879 $— $806,902 
Year-to-date gross charge-offs$385 $28 $6 $150 $— $635 $— $11 $1,215 
(in thousands)
20252024202320222021PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
December 31, 2025
Residential real estate
Payment performance
Performing$552,620 $155,815 $110,989 $767,915 $828,395 $1,041,378 $499,312 $3,671 $3,960,095 
Nonperforming— — — — — 7,651 3,057 — 10,708 
Total$552,620 $155,815 $110,989 $767,915 $828,395 $1,049,029 $502,369 $3,671 $3,970,803 
Year-to-date gross charge-offs$— $— $— $— $— $9 $96 $— $105 
Auto
Payment performance
Performing$157 $218 $49,109 $467,560 $227,342 $41,638 $— $845 $786,869 
Nonperforming— — 311 2,451 1,107 274 — — 4,143 
Total$157 $218 $49,420 $470,011 $228,449 $41,912 $— $845 $791,012 
Year-to-date gross charge-offs$— $— $1,690 $23,927 $12,077 $2,985 $— $— $40,679 
Other consumer
Payment performance
Performing$216,135 $171,060 $145,091 $73,178 $15,624 $27,294 $5,825 $143 $654,350 
Nonperforming— 1 — — — — — — 1 
Total$216,135 $171,061 $145,091 $73,178 $15,624 $27,294 $5,825 $143 $654,351 
Year-to-date gross charge-offs$619 $1 $— $— $607 $1,106 $78 $— $2,411 
Schedule of Loans Purchased
The following table presents loan receivables purchased by portfolio segment, excluding loans acquired in business combinations:
Quarter Ended June 30,Six Months Ended June 30,
2026202520262025
(in thousands)
Residential real estate$3,139 $13,387 $6,617 $42,617