v3.26.1
Loans
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
Loans Loans
Loans held-for-investment1 by portfolio type consist of the following as of:
June 30,
2026		December 31,
2025
Commercial and industrial$3,579,772 $2,937,867 
Commercial real estate:
Non-owner occupied1,195,172 742,002 
Owner occupied951,226 700,774 
Construction and land218,441 268,652 
Multifamily2,613,194 210,368 
Total commercial real estate4,978,033 1,921,796 
Residential real estate1,913,575 1,221,086 
Public finance957,556 501,582 
Consumer29,569 32,651 
Other114,047 58,198 
Total loans, excluding loan hedge fair value$11,572,552 $6,673,180 
Loan hedge fair value2
(4,109)— 
Total loans11,568,443 6,673,180 
Allowance for credit losses(173,551)(85,016)
Loans, net of allowance for credit losses$11,394,892 $6,588,164 
2 Represents fair value hedge basis adjustments related to active portfolio layer method hedges, which are not allocated to individual loans.
As of June 30, 2026 and December 31, 2025, we had net deferred fees, costs, premiums and discounts of $329,447 and $13,538, respectively, on our loan portfolio.
Accrued interest receivable on loans totaled $54,172 and $30,031 at June 30, 2026 and December 31, 2025, respectively, and is included in accrued interest receivable in the accompanying consolidated balance sheets.
There were proceeds of $1,117,883 from the sale of loans during the three and six months ended June 30, 2026. These loans were acquired in the First Foundation acquisition and were identified for disposition as part of the Company’s balance sheet repositioning strategy. Because the loans were recorded at fair value as of the acquisition date and were sold shortly thereafter, no gain or loss was recognized on sale.
The following table presents the activity in the allowance for credit losses by portfolio type for the three months ended June 30,:
Commercial
and
Industrial		Commercial
Real
Estate		Residential
Real
Estate		Public
Finance		ConsumerOtherTotal
2026
Allowance for credit losses:
Balance, beginning of period$40,809 $24,606 $13,503 $2,688 $674 $675 $82,955 
Allowance on purchased seasoned loans and leases at acquisition4,514 38,538 8,963 1,676 1 1,444 55,136 
Allowance on purchased credit deteriorated loans and leases at acquisition5,172 26,879 299 5,014 — — 37,364 
Provision (benefit) for credit losses43,500 (1,121)(1,308)(844)(19)292 40,500 
Loans charged off(40,369)(2,000)(178)— (26)— (42,573)
Recoveries153 3 — — 13 — 169 
Balance, end of period$53,779 $86,905 $21,279 $8,534 $643 $2,411 $173,551 
2025
Allowance for credit losses:
Balance, beginning of period$43,399 $26,684 $15,211 $5,243 $718 $535 $91,790 
Provision (benefit) for credit losses5,490 (1,203)38 (360)123 662 4,750 
Loans charged off(11,089)— — (1,680)(85)(743)(13,597)
Recoveries2 — — — 48 — 50 
Balance, end of period$37,802 $25,481 $15,249 $3,203 $804 $454 $82,993 
The following table presents the activity in the allowance for credit losses by portfolio type for the six months ended June 30,:
Commercial
and
Industrial		Commercial
Real
Estate		Residential
Real
Estate		Public
Finance		ConsumerOtherTotal
2026
Allowance for credit losses:
Balance, beginning of period$42,902 $24,408 $13,323 $2,942 $721 $720 $85,016 
Allowance on purchased seasoned loans and leases at acquisition4,514 38,538 8,963 1,676 1 1,444 55,136 
Allowance on purchased credit deteriorated loans and leases at acquisition5,172 26,879 299 5,014 — — 37,364 
Provision (benefit) for credit losses51,923 (923)(1,128)(1,098)(21)247 49,000 
Loans charged-off(50,953)(2,000)(178)— (90)— (53,221)
Recoveries221 3 — — 32 — 256 
Balance, end of period$53,779 $86,905 $21,279 $8,534 $643 $2,411 $173,551 
2025
Allowance for credit losses:
Balance, beginning of period$38,489 $28,323 $15,450 $4,750 $750 $459 $88,221 
Provision (benefit) for credit losses10,924 (2,842)(224)133 221 738 8,950 
Loans charged-off(11,732)— — (1,680)(254)(743)(14,409)
Recoveries121 — 23 — 87 — 231 
Balance, end of period$37,802 $25,481 $15,249 $3,203 $804 $454 $82,993 
We determine the allowance for credit losses estimate on at least a quarterly basis.
As of June 30, 2026 and December 31, 2025, we had an allowance for credit losses on unfunded commitments of $1,134 and $1,209, respectively, included in accrued expenses and other liabilities within the consolidated balance sheets. For the three months ended June 30, 2026 and 2025 we recorded a benefit for credit losses on unfunded commitments of $100 and $250, respectively. For the six months ended June 30, 2026 and 2025 we recorded a benefit for credit losses on unfunded commitments of $350 and $650, respectively.
The following table presents our loan portfolio aging analysis as of:
Loans
Not
Past Due		Loans
30-59 Days
Past Due		Loans
60-89 Days
Past Due		Loans Greater
than 90 Days
Past Due,
Still Accruing		NonaccrualTotal
June 30, 2026
Commercial and industrial$3,454,586 $19,726 $14,022 $— $91,438 $3,579,772 
Commercial real estate:
Non-owner occupied1,186,714 956 2,867 — 4,635 1,195,172 
Owner occupied929,764 5,205 1,081 — 15,176 951,226 
Construction and land214,080 — 1,963 — 2,398 218,441 
Multifamily2,556,562 10,164 — — 46,468 2,613,194 
Total commercial real estate4,887,120 16,325 5,911 — 68,677 4,978,033 
Residential real estate1,864,913 14,182 4,664 — 29,816 1,913,575 
Public Finance957,556 — — — — 957,556 
Consumer29,338 179 — — 52 29,569 
Other113,558 110 247 132 — 114,047 
Total loans$11,307,071 $50,522 $24,844 $132 $189,983 $11,572,552 
December 31, 2025
Commercial and industrial$2,890,507 $8,149 $5,501 $— $33,710 $2,937,867 
Commercial real estate:
Non-owner occupied723,930 13,891 — — 4,181 742,002 
Owner occupied699,342 414 — — 1,018 700,774 
Construction and land264,238 — 4,414 — — 268,652 
Multifamily210,368 — — — — 210,368 
Total commercial real estate1,897,878 14,305 4,414 — 5,199 1,921,796 
Residential real estate1,177,999 16,657 4,614 690 21,126 1,221,086 
Public Finance501,582 — — — — 501,582 
Consumer32,528 70 7 — 46 32,651 
Other50,244 7,954 — — — 58,198 
Total loans$6,550,738 $47,135 $14,536 $690 $60,081 $6,673,180 
Interest income recorded on nonperforming loans was not material for the three and six months ended June 30, 2026 and 2025.
Credit risk monitoring and management is a continuous process to manage the quality of the loan portfolio. We segment loans into risk categories based on relevant borrower risk profile information, including the ability of borrowers to service their debt based on current financial information, historical payment experience, credit documentation, public information and current economic trends among other factors. The risk rating system is used as a tool to analyze and monitor movements in loan portfolio quality.
Risk ratings meeting an internally specified exposure threshold are updated annually, or more frequently upon the occurrence of a circumstance that affects the credit risk of the loan. We use the following definitions for risk ratings:
Pass – Loans classified as Pass have a well-defined primary source of repayment, an acceptable financial position profile (including capitalization), profitability and minimal operating risk.
Pass/Watch – Pass/Watch loans require close attention by bank management and enhanced monitoring due to quantitative or qualitative concerns linked to adverse trends or near-term uncertainty. A covenant default or other type of requirement shortfall may have arisen subsequent to a loan's booking or borrower now shows signs of weakness in the overall base of confirmable financial resources available to repay the loan. However, overall financial capacity and performance are considered sufficient to support an expectation of continued payment performance and / or mitigating factors exist that are expected to limit the risk of near-term default and loss.
Special Mention – Special Mention loans have identified potential weaknesses that are of sufficient materiality to require management’s (persistent) close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the bank's credit position under normal business operations. Special Mention loans contain greater-than-acceptable risk and therefore do not warrant additional credit exposure absent appropriate mitigating factors; they are thus considered “criticized,” non-pass rated credits. They may contain weaknesses (that have arisen due to deteriorating conditions since origination) and / or underwriting exceptions that are not currently offset by mitigating factors. However, these weaknesses, while sufficient to constitute significantly elevated credit risk, are not sufficient to support a conclusion that the liquidation of the debt is in significant jeopardy.
Substandard - Accruing – Substandard - Accruing loans are inadequately protected by the current sound net worth and paying capacity of the obligor(s). Loans classified as Substandard - Accruing possess one or more well-defined weaknesses that are expected to jeopardize their liquidation but the weaknesses have not progressed to a point where recent late payments on the loan have become more than 90 days past due. These loans are characterized by the distinct possibility that the bank may sustain up to a moderate but not significant level of loss if such weaknesses are not corrected. Losses for Substandard - Accruing loans are moderated by the lower likelihood of ultimate default and the existence of relatively favorable secondary repayment protection. These loans are considered “classified”.
Substandard - Nonaccrual – Substandard - Nonaccrual loans are inadequately protected by the current sound net worth and paying capacity of the obligor or the collateral pledged, if any. Loans classified as Substandard - Nonaccrual possess material, well-defined weaknesses that are expected to jeopardize their liquidation and have progressed to a point where consistently late payments on the loan have become more than 90 or more days past due. These loans are characterized by the distinct possibility that the bank may sustain a material level of loss if such weaknesses are not corrected. Losses for Substandard - Nonaccrual loans are prone to being elevated based on the strong likelihood of the loan remaining in payment default and an undesirable level of secondary repayment protection. These loans are considered “nonperforming”.
Doubtful – Loans classified as Doubtful possess all of the weaknesses inherent in loans classified as Substandard - Nonaccrual with the added characteristic that the weaknesses make collection or liquidation in full highly questionable or improbable based on currently existing facts, conditions and values. A high probability of substantial loss or possible total loss exists. Loans rated as doubtful are not rated as loss because certain events may occur that could salvage at least a portion of the debt. These events include injections of capital, additions of pledged collateral or possible mezzanine debt refinancing options. However, without the occurrence of such events, total loss may be possible. No definite repayment schedule exists for these loans. The Doubtful grade is a temporary grade. If a near-term recovery of a portion of the loan balance is indeterminable or unlikely to occur, the remaining balance of the loan should be written off and possible future recoveries may partially offset the full write-off of the loan. These loans are considered “nonperforming”.
Loss – Loans classified as Loss are defaulted loans with limited or immaterial recovery prospects. No loan that has not yet defaulted should be classified at this grade level. This rating level tends to be very short lived as the full balance of the loan tends to be fully written off nearly immediately after a change to this rating level. These loans are considered “nonperforming”.
The following table presents the amortized cost by segment of loans by risk category and origination date as of June 30, 2026 and gross charge-offs by origination date for the six months ended June 30, 2026:
20262025202420232022PriorRevolving Loans
Converted to Term		RevolvingTotal
Commercial and industrial:
Pass$337,788 $592,806 $259,878 $144,170 $159,968 $195,163 $89,770 $1,464,278 $3,243,821 
Pass/Watch— 15,896 19,304 10,566 1,176 10,194 2,555 7,897 67,588 
Special Mention194 37,783 20,538 8,947 19,871 4,857 2,904 18,548 113,642 
Substandard - Accruing586 2,421 520 18,337 13,547 4,158 15,001 8,713 63,283 
Substandard - Nonaccrual12 244 1,240 6,179 23,182 8,041 146 28,037 67,081 
Doubtful— — 2,624 11,626 1,318 4,707 — 4,082 24,357 
Total commercial and industrial$338,580 $649,150 $304,104 $199,825 $219,062 $227,120 $110,376 $1,531,555 $3,579,772 
Gross charge-offs$— $— $— $9,342 $— $3,140 $3,574 $34,897 $50,953 
Commercial real estate:
Non-owner occupied:
Pass$55,135 $161,030 $28,889 $70,739 $254,371 $400,554 $15,834 $42,839 $1,029,391 
Pass/Watch— — — — 27,219 23,191 1,755 10,061 62,226 
Special Mention— — — 396 12,411 19,612 — 45,050 77,469 
Substandard - Accruing— — — — 1,482 19,969 — — 21,451 
Substandard - Nonaccrual— — — — — 4,635 — — 4,635 
Total non-owner occupied$55,135 $161,030 $28,889 $71,135 $295,483 $467,961 $17,589 $97,950 $1,195,172 
Gross charge-offs$— $— $— $— $— $— $— $— $— 
Owner occupied:
Pass$63,216 $98,510 $91,834 $69,360 $60,553 $429,560 $34,055 $5,684 $852,772 
Pass/Watch— — 92 — 2,735 17,004 — — 19,831 
Special Mention— — 12,362 3,808 6,609 19,705 — — 42,484 
Substandard - Accruing— 1,991 — 1,247 — 17,725 — — 20,963 
Substandard - Nonaccrual— — — 9,435 — 5,741 — — 15,176 
Total owner occupied$63,216 $100,501 $104,288 $83,850 $69,897 $489,735 $34,055 $5,684 $951,226 
Gross charge-offs$— $— $— $— $— $— $— $— $— 
Construction & land:
Pass$22,801 $60,859 $48,609 $2,011 $10,937 $17,163 $20,975 $11,198 $194,553 
Pass/Watch— 942 904 — — — — 4,421 6,267 
Special Mention— — 1,695 2,504 — — — — 4,199 
Substandard - Accruing— 6,481 — 4,543 — — — — 11,024 
Substandard - Nonaccrual— 398 211 — — 1,789 — — 2,398 
Total construction & land$22,801 $68,680 $51,419 $9,058 $10,937 $18,952 $20,975 $15,619 $218,441 
Gross charge-offs$— $— $— $— $— $— $— $— $— 
Multifamily:
Pass$18,157 $137,151 $59,888 $22,710 $1,024,641 $759,941 $5,412 $— $2,027,900 
Pass/Watch— — 2,104 25,563 108,624 80,004 5,001 — 221,296 
Special Mention— — — — 48,908 81,561 — — 130,469 
Substandard - Accruing— — 4,242 — 55,600 127,219 — — 187,061 
Substandard - Nonaccrual— — — — 23,566 22,902 — — 46,468 
Total multifamily$18,157 $137,151 $66,234 $48,273 $1,261,339 $1,071,627 $10,413 $— $2,613,194 
Gross charge-offs$— $— $— $— $2,000 $— $— $— $2,000 
20262025202420232022PriorRevolving Loans
Converted to Term		RevolvingTotal
Total commercial real estate:
Pass$159,309 $457,550 $229,220 $164,820 $1,350,502 $1,607,218 $76,276 $59,721 $4,104,616 
Pass/Watch— 942 3,100 25,563 138,578 120,199 6,756 14,482 309,620 
Special Mention— — 14,057 6,708 67,928 120,878 — 45,050 254,621 
Substandard - Accruing— 8,472 4,242 5,790 57,082 164,913 — — 240,499 
Substandard - Nonaccrual— 398 211 9,435 23,566 35,067 — — 68,677 
Total commercial real estate:$159,309 $467,362 $250,830 $212,316 $1,637,656 $2,048,275 $83,032 $119,253 $4,978,033 
Gross charge-offs$— $— $— $— $2,000 $— $— $— $2,000 
Residential real estate:
Pass$88,057 $162,636 $120,433 $95,161 $698,451 $645,108 $2,300 $43,309 $1,855,455 
Pass/Watch— 1,296 223 2,638 6,394 9,049 34 267 19,901 
Special Mention— 851 389 389 1,681 1,998 — 502 5,810 
Substandard - Accruing— — — — 1,298 1,276 — 19 2,593 
Substandard - Nonaccrual— — 1,945 1,817 13,435 12,259 101 259 29,816 
Total residential real estate$88,057 $164,783 $122,990 $100,005 $721,259 $669,690 $2,435 $44,356 $1,913,575 
Gross charge-offs$— $— $— $— $— $178 $— $— $178 
Public Finance:
Pass$275 $6,722 $37,357 $1,045 $380,065 $500,303 $— $3,210 $928,977 
Pass/Watch— — — — 4,809 — — — 4,809 
Special Mention— — — — — 9,332 — — 9,332 
Substandard - Accruing— — — — — 14,438 — — 14,438 
Total public finance$275 $6,722 $37,357 $1,045 $384,874 $524,073 $— $3,210 $957,556 
Gross charge-offs$— $— $— $— $— $— $— $— $— 
Consumer:
Pass$1,448 $1,813 $1,458 $448 $590 $10,771 $113 $10,959 $27,600 
Pass/Watch141 25 — 2 3 598 2 147 918 
Special Mention— — — — — — — 999 999 
Substandard - Nonaccrual— 1 12 — — 39 — — 52 
Total consumer$1,589 $1,839 $1,470 $450 $593 $11,408 $115 $12,105 $29,569 
Gross charge-offs$— $— $— $— $— $84 $— $6 $90 
Other:
Pass$2,420 $12,056 $5,132 $— $8,758 $16,273 $— $13,409 $58,048 
Pass/Watch— 85 5,359 24,844 20,093 2,616 — 3,002 55,999 
Total other$2,420 $12,141 $10,491 $24,844 $28,851 $18,889 $— $16,411 $114,047 
Gross charge-offs$— $— $— $— $— $— $— $— $— 
Total loans:
Pass$589,297 $1,233,583 $653,478 $405,644 $2,598,334 $2,974,836 $168,459 $1,594,886 $10,218,517 
Pass/Watch141 18,244 27,986 63,613 171,053 142,656 9,347 25,795 458,835 
Special Mention194 38,634 34,984 16,044 89,480 137,065 2,904 65,099 384,404 
Substandard - Accruing586 10,893 4,762 24,127 71,927 184,785 15,001 8,732 320,813 
Substandard - Nonaccrual12 643 3,408 17,431 60,183 55,406 247 28,296 165,626 
Doubtful— — 2,624 11,626 1,318 4,707 — 4,082 24,357 
Total loans$590,230 $1,301,997 $727,242 $538,485 $2,992,295 $3,499,455 $195,958 $1,726,890 $11,572,552 
Gross charge-offs$— $— $— $9,342 $2,000 $3,402 $3,574 $34,903 $53,221 
The following table presents the amortized cost by segment of loans by risk category and origination date as of December 31, 2025 and gross charge-offs by origination date for the year ended December 31, 2025:
20252024202320222021PriorRevolving Loans Converted to TermRevolvingTotal
Commercial and industrial:
Pass$740,012 $298,940 $169,246 $149,909 $121,886 $80,362 $57,063 $1,039,368 $2,656,786 
Pass/Watch2,217 26,707 11,607 26,316 1,005 2,868 2,195 9,782 82,697 
Special Mention— 13,948 20,570 23,243 3,338 295 17,330 14,443 93,167 
Substandard - Accruing1,522 — 24,860 9,031 13,523 4,387 5,571 12,613 71,507 
Substandard - Nonaccrual— — — 10,950 1,487 3,011 16,657 237 32,342 
Doubtful— — — 959 — — — 409 1,368 
Total commercial and industrial$743,751 $339,595 $226,283 $220,408 $141,239 $90,923 $98,816 $1,076,852 $2,937,867 
Gross charge-offs$— $983 $1,765 $16,676 $83 $1,846 $2,973 $1,474 $25,800 
Commercial real estate:
Non-owner occupied:
Pass$161,082 $38,766 $58,184 $100,232 $103,191 $190,446 $7,616 $19,647 $679,164 
Pass/Watch— — — 8,964 28,923 7,023 1,759 10,162 56,831 
Special Mention— — — — — 246 — — 246 
Substandard - Accruing— — — 1,366 — 214 — — 1,580 
Substandard - Nonaccrual— — — — — 4,181 — — 4,181 
Total non-owner occupied$161,082 $38,766 $58,184 $110,562 $132,114 $202,110 $9,375 $29,809 $742,002 
Gross charge-offs$— $— $— $— $— $— $— $— $— 
Owner occupied:
Pass$101,496 $88,319 $70,010 $37,308 $77,652 $207,336 $34,639 $5,351 $622,111 
Pass/Watch— 93 558 8,403 5,275 17,174 — — 31,503 
Special Mention— 12,465 2,010 6,676 — 5,417 — — 26,568 
Substandard - Accruing— — 9,556 — 441 9,577 — — 19,574 
Substandard - Nonaccrual— — — — — 1,018 — — 1,018 
Total owner occupied$101,496 $100,877 $82,134 $52,387 $83,368 $240,522 $34,639 $5,351 $700,774 
Gross charge-offs$— $— $— $— $— $— $— $— $— 
Construction & land:
Pass$32,191 $46,025 $59,674 $48,126 $6,319 $7,779 $19,081 $10,372 $229,567 
Pass/Watch1,050 905 — 3,246 — — — — 5,201 
Special Mention— 1,736 7,375 24,773 — — — — 33,884 
Total construction & land$33,241 $48,666 $67,049 $76,145 $6,319 $7,779 $19,081 $10,372 $268,652 
Gross charge-offs$— $— $— $— $— $— $— $— $— 
Multifamily:
Pass$35,233 $4,457 $1,309 $109,040 $29,471 $17,717 $10,460 $— $207,687 
Pass/Watch— — — — — 878 — — 878 
Special Mention— — — — 1,803 — — — 1,803 
Total multifamily$35,233 $4,457 $1,309 $109,040 $31,274 $18,595 $10,460 $— $210,368 
Gross charge-offs$— $— $— $— $— $— $— $— $— 
20252024202320222021PriorRevolving Loans Converted to TermRevolvingTotal
Total commercial real estate:
Pass$330,002 $177,567 $189,177 $294,706 $216,633 $423,278 $71,796 $35,370 $1,738,529 
Pass/Watch1,050 998 558 20,613 34,198 25,075 1,759 10,162 94,413 
Special Mention— 14,201 9,385 31,449 1,803 5,663 — — 62,501 
Substandard - Accruing— — 9,556 1,366 441 9,791 — — 21,154 
Substandard - Nonaccrual— — — — — 5,199 — — 5,199 
Total commercial real estate:$331,052 $192,766 $208,676 $348,134 $253,075 $469,006 $73,555 $45,532 $1,921,796 
Gross charge-offs$— $— $— $— $— $— $— $— $— 
Residential real estate:
Pass$151,678 $135,326 $100,216 $502,785 $101,673 $157,612 $2,160 $16,254 $1,167,704 
Pass/Watch4,248 2,263 2,565 6,467 5,888 7,450 54 — 28,935 
Special Mention1,644 431 388 626 — 183 — — 3,272 
Substandard - Accruing— — — — — 49 — — 49 
Substandard - Nonaccrual— 568 505 12,512 378 7,005 133 25 21,126 
Total residential real estate$157,570 $138,588 $103,674 $522,390 $107,939 $172,299 $2,347 $16,279 $1,221,086 
Gross charge-offs$— $— $— $— $— $74 $— $— $74 
Public Finance:
Pass$6,725 $30,469 $1,066 $— $41,450 $418,758 $— $3,114 $501,582 
Total public finance$6,725 $30,469 $1,066 $— $41,450 $418,758 $— $3,114 $501,582 
Gross charge-offs$— $— $— $— $— $1,922 $— $— $1,922 
Consumer:
Pass$2,469 $2,121 $767 $759 $2,930 $9,535 $150 $13,026 $31,757 
Pass/Watch27 — 3 5 100 508 61 144 848 
Substandard - Nonaccrual— — — — 2 44 — — 46 
Total consumer$2,496 $2,121 $770 $764 $3,032 $10,087 $211 $13,170 $32,651 
Gross charge-offs$— $8 $17 $58 $42 $197 $1 $124 $447 
Other:
Pass$11,659 $4,945 $— $7,321 $9,128 $6,545 $— $14,924 $54,522 
Pass/Watch— — — — 672 — — 3,004 3,676 
Total other$11,659 $4,945 $— $7,321 $9,800 $6,545 $— $17,928 $58,198 
Gross charge-offs$— $— $— $— $— $743 $— $— $743 
Total loans:
Pass$1,242,545 $649,368 $460,472 $955,480 $493,700 $1,096,090 $131,169 $1,122,056 $6,150,880 
Pass/Watch7,542 29,968 14,733 53,401 41,863 35,901 4,069 23,092 210,569 
Special Mention1,644 28,580 30,343 55,318 5,141 6,141 17,330 14,443 158,940 
Substandard - Accruing1,522 — 34,416 10,397 13,964 14,227 5,571 12,613 92,710 
Substandard - Nonaccrual— 568 505 23,462 1,867 15,259 16,790 262 58,713 
Doubtful— — — 959 — — — 409 1,368 
Total loans$1,253,253 $708,484 $540,469 $1,099,017 $556,535 $1,167,618 $174,929 $1,172,875 $6,673,180 
Gross charge-offs$— $991 $1,782 $16,734 $125 $4,782 $2,974 $1,598 $28,986 
The following table presents information about collateral dependent loans that were individually evaluated for purposes of determining the ACL as of:
Collateral Dependent Loans
With Allowance		Collateral Dependent Loans
With No Related Allowance		Total Collateral
Dependent Loans
Amortized CostRelated AllowanceAmortized CostAmortized CostRelated Allowance
June 30, 2026
Commercial & industrial$69,127 $14,636 $22,311 $91,438 $14,636 
Commercial real estate:
Non-owner occupied3,617 399 1,018 4,635 399 
Owner occupied5 5 15,171 15,176 5 
Construction and land— — 2,398 2,398 — 
Multifamily33,047 2,789 13,421 46,468 2,789 
Total commercial real estate36,669 3,193 32,008 68,677 3,193 
Residential real estate2,633 148 27,183 29,816 148 
Consumer51 51 1 52 51 
Total loans$108,480 $18,028 $81,503 $189,983 $18,028 
December 31, 2025
Commercial & industrial$11,977 $5,194 $21,733 $33,710 $5,194 
Commercial real estate:
Non-owner occupied3,617 102 564 4,181 102 
Owner occupied— — 1,018 1,018 — 
Total commercial real estate3,617 102 1,582 5,199 102 
Residential real estate1,976 101 19,150 21,126 101 
Consumer43 43 3 46 43 
Total loans$17,613 $5,440 $42,468 $60,081 $5,440 
The allowance related to collateral dependent loans reported in the tables above includes qualitative adjustments applied to the loan portfolio that consider possible changes in circumstances that could ultimately impact credit losses and might not be reflected in historical data or forecasted data incorporated in the quantitative models.
Loan Modifications Made to Borrowers Experiencing Financial Difficulty:
The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon origination. The starting point for the estimate of the allowance for credit losses is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. We use a probability of default/loss given default model to determine the allowance for credit losses. An assessment of whether a borrower is experiencing financial difficulty is made at the time of a modification. The loan modifications in the table below did not significantly impact our determination of the allowance for credit losses on loans during the three and six months ended June 30, 2026.
Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses, a change to the allowance for credit losses is generally not recorded upon modification. Occasionally, we modify loans by providing principal forgiveness that is deemed to be uncollectible; therefore, that portion of the loan is written-off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the allowance for credit losses. Additionally, we may allow a loan to go interest only for a specified period of time.
The following tables present loan modifications for borrowers experiencing financial difficulty, segregated by modification type, regardless of whether such modifications resulted in a new loan.
For the three months ended June 30,:
Principal
Forgiveness		Payment
Delay		Term
Extension		% of
Total Class
of Loans
2026
Commercial and industrial$5,020 $280 $12,253 0.5 %
Total loans$5,020 $280 $12,253 0.2 %
2025
Commercial and industrial$— $— $1,814 0.1 %
Commercial real estate:
Owner occupied$— 1,120 — 0.2 %
Residential real estate— — 429 — %
Total loans$— $1,120 $2,243 0.1 %
For the six months ended June 30,:
Principal
Forgiveness		Payment
Delay		Term
Extension		Interest Rate
Reduction		Combination Term Extension and Interest Rate Reduction% of
Total Class
of Loans
2026
Commercial and industrial$5,020 $39,239 $12,253 $— $2,683 1.7 %
Commercial real estate:
Non-owner occupied— 246 — — — — %
Residential real estate— — 1,182 — — 0.1 %
Total loans$5,020 $39,485 $13,435 $— $2,683 0.5 %
2025
Commercial and industrial$— $1,319 $1,814 $— $— 0.1 %
Commercial real estate:
Owner occupied— 1,120 — 1,181 — 0.3 %
Residential real estate— — 1,198 — — 0.1 %
Total loans$— $2,439 $3,012 $1,181 $— 0.1 %
Modifications made to borrowers experiencing financial difficulty during the periods presented included principal forgiveness, payment deferrals, term extensions, interest-rate reductions and combination of these modifications.
There were no commitments to lend additional funds to these borrowers at June 30, 2026.
We closely monitor the performance of loan modifications made to borrowers experiencing financial difficulty to understand the effectiveness of the modification efforts. The following table depicts the performance of loan modifications made to borrowers experiencing financial difficulty that have been modified in the preceding 12 months:
Loans
Not
Past Due		Loans
30-59 Days
Past Due		Loans
60-89 Days
Past Due		Loans Greater
than 90 Days
Past Due,
Still Accruing		NonaccrualTotal
June 30, 2026
Commercial and industrial$14,629 $7,797 $— $— $49,739 $72,165 
Commercial real estate:
Non-owner occupied— — — — 246 246 
Residential real estate769 — 953 — 430 2,152 
Total loans$15,398 $7,797 $953 $— $50,415 $74,563 
June 30, 2025
Commercial and industrial$1,606 $— $— $— $7,468 $9,074 
Commercial real estate:
Non-owner occupied1,911 — — — — 1,911 
Owner occupied6,933 — — — 1,120 8,053 
Total commercial real estate8,844 — — — 1,120 9,964 
Residential real estate1,197 — — — 640 1,837 
Total loans$11,647 $— $— $— $9,228 $20,875