Loans and Leases and Allowance for Credit Losses

The following tables detail the changes in the allowance for credit losses by loan and lease classification (in thousands):


	Three Months Ended June 30, 2026
	Commercial		Commercial
	Real Estate		Real Estate		Consumer		Construction		Commercial
	Non-Owner		Owner		Real		and Land		and				Consumer
	Occupied		Occupied		Estate		Development		Industrial		Leases		and Other		Total
Beginning balance	$	8,364	$	8,116	$	8,912	$	8,732	$	8,193	$	1,464	$	169	$	43,950
Charged-off loans and leases		—		—		—		—		(321)		(228)		(109)		(658)
Recoveries of charge-offs		—		10		—		58		19		—		18		105
Provision charged to expense ⁽¹⁾		22		164		382		462		316		387		122		1,855
Ending balance	$	8,386	$	8,290	$	9,294	$	9,252	$	8,207	$	1,623	$	200	$	45,252


	Three Months Ended June 30, 2025
	Commercial		Commercial
	Real Estate		Real Estate		Consumer		Construction		Commercial
	Non-Owner		Owner		Real		and Land		and				Consumer
	Occupied		Occupied		Estate		Development		Industrial		Leases		and Other		Total
Beginning balance	$	7,326	$	8,415	$	8,688	$	4,154	$	8,628	$	842	$	122	$	38,175
Charged-off loans and leases		—		—		—		—		(60)		(159)		(50)		(269)
Recoveries of charge-offs		—		1		—		—		99		3		20		123
Provision charged to expense ⁽³⁾		(72)		446		199		296		663		182		33		1,747
Ending balance	$	7,254	$	8,862	$	8,887	$	4,450	$	9,330	$	868	$	125	$	39,776


	Six Months Ended June 30, 2026
	Commercial		Commercial
	Real Estate		Real Estate		Consumer		Construction		Commercial
	Non-Owner		Owner		Real		and Land		and				Consumer
	Occupied		Occupied		Estate		Development		Industrial		Leases		and Other		Total
Beginning balance	$	8,044	$	8,876	$	8,767	$	4,298	$	8,611	$	2,173	$	137	$	40,906
Charged-off loans and leases		—		—		—		—		(412)		(287)		(187)		(886)
Recoveries of charge-offs		—		12		—		58		55		—		40		165
Provision charged to expense ^{(1) (2)}		342		(598)		527		4,896		(47)		(263)		210		5,067
Ending balance	$	8,386	$	8,290	$	9,294	$	9,252	$	8,207	$	1,623	$	200	$	45,252


	Six Months Ended June 30, 2025
	Commercial		Commercial
	Real Estate		Real Estate		Consumer		Construction		Commercial
	Non-Owner		Owner		Real		and Land		and				Consumer
	Occupied		Occupied		Estate		Development		Industrial		Leases		and Other		Total
Beginning balance	$	6,972	$	8,341	$	8,355	$	4,168	$	8,552	$	919	$	116	$	37,423
Charged-off loans and leases		—		—		—		—		(119)		(349)		(133)		(601)
Recoveries of charge-offs		—		3		—		200		122		3		35		363
Provision charged to expense ⁽³⁾		282		518		532		82		775		295		107		2,591
Ending balance	$	7,254	$	8,862	$	8,887	$	4,450	$	9,330	$	868	$	125	$	39,776

(1)

In the provision charged to expense, there was a release for unfunded commitment liability of $392 thousand and a provision of $534 thousand that is not included in the table above for the three and six months ended June 30, 2026.

(2)

The increase in the provision charged to expense for construction and land development loans was primarily driven by updates to the allowance methodology during the first quarter of 2026, specifically around the quantitative reserve, which resulted in higher modeled loss expectations for this portfolio segment.

(3)

In the provision charged to expense, there was a provision for unfunded commitment liability of $664 thousand and $800 thousand that is not included in the table above for the three and six months ended June 30, 2025.

Past Due Loans and Leases

The following tables present an aging analysis of our loan and lease portfolio (in thousands):


		June 30, 2026
								90 Days
		30-59 Days			60-89 Days			or More			Total			Loans Not		Total
		Past Due			Past Due			Past Due			Past Due			Past Due		Loans
Commercial real estate:
Non-owner occupied		$	505		$	392		$	144		$	1,041		$	1,287,074	$	1,288,115
Owner occupied			613			329			271			1,213			1,079,746		1,080,959
Consumer real estate			508			662			1,252			2,422			879,218		881,640
Construction and land development			—			55			—			55			516,109		516,164
Commercial and industrial			1,049			249			1,258			2,556			840,293		842,849
Leases			2,537			216			3,133			5,886			46,525		52,411
Consumer and other			501			26			—			527			20,270		20,797
Total		$	5,713		$	1,929		$	6,058		$	13,700		$	4,669,235	$	4,682,935


		December 31, 2025
								90 Days
		30-59 Days			60-89 Days			or More			Total			Loans Not		Total
		Past Due			Past Due			Past Due			Past Due			Past Due		Loans
Commercial real estate:
Non-owner occupied		$	—		$	—		$	189		$	189		$	1,196,569		1,196,758
Owner occupied			1,150			211			270			1,631			1,021,240		1,022,871
Consumer real estate			1,786			1,725			918			4,429			830,197		834,626
Construction and land development			68			—			—			68			419,108		419,176
Commercial and industrial			1,178			674			1,204			3,056			814,539		817,595
Leases			1,889			73			2,156			4,118			51,304		55,422
Consumer and other			117			3			—			120			17,014		17,134
Total		$	6,188		$	2,686		$	4,737		$	13,611		$	4,349,971	$	4,363,582

Summary of amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses

The following table presents the amortized cost basis of collateral-dependent loans, which are individually evaluated to determine expected credit losses (in thousands):


	June 30, 2026
	Real Estate		Other		Total
Commercial real estate:
Non-owner occupied	$	708	$	—	$	708
Owner occupied		3,845		—		3,845
Consumer real estate		1,017		—		1,017
Construction and land development		—		—		—
Commercial and industrial		—		1,783		1,783
Leases		—		529		529
Consumer and other		—		—		—
Total	$	5,570	$	2,312	$	7,882

	December 31, 2025
	Real Estate		Other		Total
Commercial real estate:
Non-owner occupied	$	413	$	—	$	413
Owner occupied		4,129		—		4,129
Consumer real estate		1,075		—		1,075
Construction and land development		—		—		—
Commercial and industrial		—		3,115		3,115
Leases		—		2,409		2,409
Consumer and other		—		—		—
Total	$	5,617	$	5,524	$	11,141

Summary of loans and leases made to borrowers experiencing financial difficulty that defaulted

The table below shows the amortized cost of loans and leases made to borrowers experiencing financial difficulty that defaulted during the three and six months ended June 30, 2026, and were modified in the twelve months prior to that default. (dollars in thousands):


								Payment Delay
		Payment			Term			and Term
Three Months Ended June 30, 2026		Delay			Extension			Extension		Total
Commercial real estate		$	—		$	—		$	—	$	—
Consumer real estate			—			—			—		—
Construction and land development			—			—			—		—
Commercial and industrial			—			52			—		52
Leases			—			—			—		—
Consumer and other			—			—			—		—
Total		$	—		$	52		$	—	$	52


Six Months Ended June 30, 2026
Commercial real estate		$	—		$	—		$	—	$	—
Consumer real estate			—			—			—		—
Construction and land development			—			—			—		—
Commercial and industrial			—			52			—		52
Leases			—			—			—		—
Consumer and other			—			—			—		—
Total		$	—		$	52		$	—	$	52