v3.26.1
Loans and Allowance for Credit Losses
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
Loans and Allowance for Credit Losses
Note 4    Loans and Allowance for Credit Losses
Loans consisted of the following at the dates indicated (dollars in thousands):
June 30, 2026December 31, 2025
Amortized Cost
Percent of Total Loans
Amortized Cost
Percent of Total Loans
Commercial:
Non-owner occupied commercial real estate$6,327,275 26.4 %$6,105,207 25.2 %
Construction and land679,626 2.8 %705,664 2.9 %
Owner occupied commercial real estate2,039,523 8.5 %2,020,572 8.3 %
Commercial and industrial6,641,643 27.8 %7,008,903 28.8 %
Pinnacle - municipal finance636,945 2.7 %619,374 2.6 %
Franchise and equipment finance
71,740 0.3 %102,746 0.4 %
Mortgage warehouse lending 876,771 3.7 %728,241 3.0 %
17,273,523 72.2 %17,290,707 71.2 %
Residential:
1-4 single family residential5,807,912 24.3 %6,091,959 25.1 %
Government insured residential847,638 3.5 %891,041 3.7 %
6,655,550 27.8 %6,983,000 28.8 %
Total loans23,929,073 100.0 %24,273,707 100.0 %
Allowance for credit losses(217,516)(219,825)
Loans, net$23,711,557 $24,053,882 
Premiums, discounts and deferred fees and costs, excluding the non-credit related discount on PCD loans, totaled $21 million and $22 million at June 30, 2026 and December 31, 2025, respectively. The amortized cost of PCD loans totaled $29 million and $32 million at June 30, 2026 and December 31, 2025, respectively.
Included in loans, net are direct or sales type finance leases totaling $405 million and $381 million at June 30, 2026 and December 31, 2025, respectively. The amount of income recognized from direct or sales type finance leases for the three and six months ended June 30, 2026 and 2025 totaled $2.5 million, $4.9 million, $2.9 million and $5.7 million, respectively, and is included in interest income on loans in the consolidated statements of income.
During the three and six months ended June 30, 2026 and 2025, the Company purchased residential loans totaling $82 million, $139 million, $89 million, and $185 million, respectively.
At June 30, 2026 and December 31, 2025, the Company had pledged loans with a carrying value of approximately $15.4 billion and $15.6 billion, respectively, as security for FHLB advances and FHLB and Federal Reserve discount window capacity.
Accrued interest receivable on loans totaled $111 million and $113 million at June 30, 2026 and December 31, 2025, respectively, and is included in other assets in the accompanying consolidated balance sheets. The amount of interest income reversed on non-accrual loans was not material for the three and six months ended June 30, 2026 and 2025.
Allowance for credit losses
Activity in the ACL is summarized below for the periods indicated (in thousands):
Three Months Ended June 30,
20262025
CommercialResidentialTotalCommercialResidentialTotal
Beginning balance$198,459 $10,331 $208,790 $204,180 $15,567 $219,747 
Provision (recovery)13,054 2,044 15,098 17,292 (1,598)15,694 
Charge-offs(10,390)— (10,390)(14,051)(208)(14,259)
Recoveries4,018 — 4,018 1,540 8 1,548 
Ending balance$205,141 $12,375 $217,516 $208,961 $13,769 $222,730 
Six Months Ended June 30,
20262025
CommercialResidentialTotalCommercialResidentialTotal
Beginning balance$208,412 $11,413 $219,825 $211,203 $11,950 $223,153 
Provision (recovery)39,238 962 40,200 29,638 2,019 31,657 
Charge-offs(47,186)— (47,186)(36,808)(208)(37,016)
Recoveries4,677 — 4,677 4,928 8 4,936 
Ending balance$205,141 $12,375 $217,516 $208,961 $13,769 $222,730 
The ACL was determined utilizing a 2-year reasonable and supportable forecast period. The quantitative portion of the ACL was determined by weighting three third-party provided economic scenarios.
The ACL was 0.91% of total loans at both June 30, 2026 and December 31, 2025. The most significant factors impacting the ACL for the six months ended June 30, 2026 were net charge-offs, partially offset by higher specific reserves. The ACL was also impacted, although to a lesser extent, by increases related to (i) changes in the economic forecast, (ii) a net increase in certain qualitative factors, (iii) risk rating migration, and decreases related to (iv) changes in portfolio composition, (v) improvements in borrower financial performance, and (vi) routine modeling and assumption updates.
The following table presents gross charge-offs during the six months ended June 30, 2026 by year of origination (in thousands):
Gross Charge-offs By Loan Origination Year
20262025202420232022Prior to 2022Revolving LoansTotal
CRE$— $— $— $— $— $7,196 $— $7,196 
C&I289 302 25 16,531 15,400 268 7,175 39,990 
$289 $302 $25 $16,531 $15,400 $7,464 $7,175 $47,186 
The following table presents the components of the provision for credit losses for the periods indicated (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Amount related to funded portion of loans$15,098 $15,694 $40,200 $31,657 
Amount related to off-balance sheet credit exposures461 4 (55)(848)
Total provision for credit losses$15,559 $15,698 $40,145 $30,809 
Credit quality information
Credit quality of loans held for investment is continuously monitored by dedicated commercial portfolio management and residential credit risk management functions. The Company also has a workout and recovery department that monitors the credit quality of criticized and classified loans and an independent internal credit review function.
Credit quality indicators for commercial loans
Factors that impact risk inherent in commercial portfolio segments include but are not limited to levels of economic activity or potential disruptions in economic activity, health of the national, regional and to a lesser extent global economies, interest rates, industry trends, demographic trends, inflationary trends, including particularly for commercial real estate loans the cost of insurance, patterns of and trends in customer behavior that influence demand for our borrowers' products and services, and commercial real estate values and related market dynamics. Particularly for the office sector, the evolving impact of hybrid and remote work on vacancies and valuations is a factor. Internal risk ratings are considered the most meaningful indicator of credit quality for commercial loans. Internal risk ratings are one indicator of the likelihood that a borrower will default, are a key factor influencing the level and nature of ongoing monitoring of loans and may impact the estimation of the ACL. Internal risk ratings are updated on a continuous basis. Generally, relationships with balances greater than $3 million are re-evaluated at least annually and more frequently if circumstances indicate that a change in risk rating may be warranted. The special mention rating is considered a transitional rating for loans exhibiting potential credit weaknesses that could result in deterioration of repayment prospects at some future date if not checked or corrected and that deserve management’s close attention. These borrowers may exhibit declining cash flows or revenues or increasing leverage. Loans with well-defined credit weaknesses that may result in a loss if the deficiencies are not corrected are assigned a risk rating of substandard. These borrowers may exhibit payment defaults, inadequate cash flows from current operations, operating losses, increasing balance sheet leverage, project cost overruns, unreasonable construction delays, exhausted interest reserves, declining collateral values, frequent overdrafts or past due real estate taxes. Loans with weaknesses so severe that collection in full is highly questionable or improbable, but because of certain reasonably specific pending factors have not been charged off, are assigned an internal risk rating of doubtful. 
Commercial credit exposure based on internal risk rating (in thousands):
June 30, 2026
Amortized Cost By Origination YearRevolving Loans
20262025202420232022PriorTotal
CRE
Pass$769,470 $1,976,292 $826,615 $637,621 $739,299 $1,492,308 $84,006 $6,525,611 
Special mention— — — 16,655 — 17,213 — 33,868 
Substandard395 — — 54,687 83,454 286,679 22,207 447,422 
Total CRE$769,865 $1,976,292 $826,615 $708,963 $822,753 $1,796,200 $106,213 $7,006,901 
C&I
Pass$758,744 $1,500,369 $950,695 $646,638 $612,512 $1,083,379 $2,554,756 $8,107,093 
Special mention— 9,520 57,099 24,182 16,366 5,174 28,989 141,330 
Substandard— 17,074 59,581 63,824 88,345 116,748 45,489 391,061 
Doubtful— — 3,072 7,521 3,013 15,134 12,942 41,682 
Total C&I$758,744 $1,526,963 $1,070,447 $742,165 $720,236 $1,220,435 $2,642,176 $8,681,166 
Pinnacle - municipal finance
Pass$77,412 $87,772 $31,661 $41,143 $60,037 $338,920 $— $636,945 
Total Pinnacle - municipal finance$77,412 $87,772 $31,661 $41,143 $60,037 $338,920 $— $636,945 
Franchise and equipment finance
Pass$— $— $— $1,653 $2,026 $64,062 $— $67,741 
Substandard— — — — — 3,999 — 3,999 
Total Franchise and equipment finance
$— $— $— $1,653 $2,026 $68,061 $— $71,740 
Mortgage warehouse lending
Pass$— $— $— $— $— $— $876,771 $876,771 
Total Mortgage warehouse lending$— $— $— $— $— $— $876,771 $876,771 
December 31, 2025
Amortized Cost By Origination YearRevolving Loans
20252024202320222021PriorTotal
CRE
Pass$1,836,664 $870,799 $822,536 $826,480 $382,747 $1,286,442 $119,505 $6,145,173 
Special mention— — 16,422 21,436 12,154 32,135 — 82,147 
Substandard34,723 — — 87,201 105,074 356,553 — 583,551 
Total CRE$1,871,387 $870,799 $838,958 $935,117 $499,975 $1,675,130 $119,505 $6,810,871 
C&I
Pass$1,693,466 $1,159,621 $795,383 $674,292 $337,040 $1,001,431 $2,852,094 $8,513,327 
Special mention— 13,739 17,160 36,538 5,255 — 20,170 92,862 
Substandard1,167 24,280 65,788 90,484 20,650 104,078 68,592 375,039 
Doubtful— — 13,462 6,377 14,954 — 13,454 48,247 
Total C&I$1,694,633 $1,197,640 $891,793 $807,691 $377,899 $1,105,509 $2,954,310 $9,029,475 
Pinnacle - municipal finance
Pass$94,045 $37,328 $55,340 $63,653 $36,700 $332,308 $— $619,374 
Total Pinnacle - municipal finance$94,045 $37,328 $55,340 $63,653 $36,700 $332,308 $— $619,374 
Franchise and equipment finance
Pass$— $— $1,778 $3,125 $22,423 $58,739 $— $86,065 
Substandard— — — — — 16,681 — 16,681 
Total Franchise and equipment finance
$— $— $1,778 $3,125 $22,423 $75,420 $— $102,746 
Mortgage warehouse lending
Pass$— $— $— $— $— $— $728,241 $728,241 
Total Mortgage warehouse lending$— $— $— $— $— $— $728,241 $728,241 
At June 30, 2026 and December 31, 2025, the balance of revolving loans converted to term loans was immaterial.
The following table presents criticized and classified commercial loans in aggregate by risk rating category at the dates indicated (in thousands):
June 30, 2026December 31, 2025
Special mention$175,198 $175,009 
Substandard - accruing686,274 674,368 
Substandard - non-accruing156,208 300,903 
Doubtful41,682 48,247 
Total $1,059,362 $1,198,527 
Credit quality indicators for residential loans
Management considers delinquency status to be the most meaningful indicator of the credit quality of residential loans, other than government insured residential loans. Delinquency status is updated at least monthly. LTV and FICO scores are also important indicators of credit quality for 1-4 single family residential loans other than government insured loans. FICO scores are generally updated semi-annually and were most recently updated in the first quarter of 2026. LTVs are typically at origination. Substantially all of the government insured residential loans are government insured Buyout Loans, which the Company buys out of GNMA securitizations upon default. For these loans, traditional measures of credit quality are not particularly relevant considering the guaranteed nature of the loans and the underlying business model. Factors that impact risk inherent in the residential portfolio segment include national and regional economic conditions such as levels of unemployment, wages and interest rates, as well as residential property values.
1-4 Single Family Residential credit exposure, excluding government insured residential loans, based on delinquency status (in thousands):
June 30, 2026
Amortized Cost By Origination Year
Days Past Due
20262025202420232022PriorTotal
Current $83,278 $250,408 $148,186 $175,667 $879,036 $4,205,607 $5,742,182 
30 - 59 Days Past Due1,159 — 1,157 4,524 2,441 30,630 39,911 
60 - 89 Days Past Due— — — 1,301 3,046 2,842 7,189 
90 Days or More Past Due— 159 1,599 1,104 1,256 14,512 18,630 
$84,437 $250,567 $150,942 $182,596 $885,779 $4,253,591 $5,807,912 
December 31, 2025
Amortized Cost By Origination Year
Days Past Due
20252024202320222021PriorTotal
Current $245,592 $197,279 $232,600 $920,112 $2,543,128 $1,883,061 $6,021,772 
30 - 59 Days Past Due2,445 72 884 7,390 17,045 20,263 48,099 
60 - 89 Days Past Due395 — — — 1,471 2,602 4,468 
90 Days or More Past Due159 2,016 72 975 5,380 9,018 17,620 
$248,591 $199,367 $233,556 $928,477 $2,567,024 $1,914,944 $6,091,959 
1-4 Single Family Residential credit exposure, excluding government insured residential loans, based on LTV (in thousands): 
June 30, 2026
Amortized Cost By Origination Year
LTV20262025202420232022PriorTotal
Less than 61%$14,878 $43,032 $17,757 $29,340 $204,534 $1,595,531 $1,905,072 
61% - 70% 27,546 43,190 19,480 19,484 228,047 1,110,409 1,448,156 
71% - 80%25,842 99,598 85,947 107,234 449,839 1,488,249 2,256,709 
More than 80%16,171 64,747 27,758 26,538 3,359 59,402 197,975 
$84,437 $250,567 $150,942 $182,596 $885,779 $4,253,591 $5,807,912 
December 31, 2025
Amortized Cost By Origination Year
LTV20252024202320222021PriorTotal
Less than 61%$42,822 $25,252 $41,263 $213,007 $1,035,507 $652,497 $2,010,348 
61% - 70% 43,662 24,753 28,681 241,588 715,135 454,229 1,508,048 
71% - 80% 102,327 116,351 133,730 470,437 785,474 775,835 2,384,154 
More than 80%59,780 33,011 29,882 3,445 30,908 32,383 189,409 
$248,591 $199,367 $233,556 $928,477 $2,567,024 $1,914,944 $6,091,959 
1-4 Single Family Residential credit exposure, excluding government insured residential loans, based on FICO score (in thousands):
June 30, 2026
Amortized Cost By Origination Year
FICO20262025202420232022PriorTotal
760 or greater$61,546 $179,436 $113,448 $127,363 $629,300 $3,276,812 $4,387,905 
720 - 75922,582 45,963 24,268 28,407 138,053 571,905 831,178 
719 or less or not available
309 25,168 13,226 26,826 118,426 404,874 588,829 
$84,437 $250,567 $150,942 $182,596 $885,779 $4,253,591 $5,807,912 
December 31, 2025
Amortized Cost By Origination Year
FICO20252024202320222021PriorTotal
760 or greater$178,910 $145,699 $167,837 $671,820 $2,058,226 $1,395,521 $4,618,013 
720 - 75954,894 35,812 37,624 144,931 324,779 287,334 885,374 
719 or less or not available
14,787 17,856 28,095 111,726 184,019 232,089 588,572 
$248,591 $199,367 $233,556 $928,477 $2,567,024 $1,914,944 $6,091,959 
Past Due and Non-Accrual Loans
The following table presents an aging of loans at the dates indicated (in thousands):
June 30, 2026December 31, 2025
Current30 - 59
Days Past
Due		60 - 89
Days Past
Due		90 Days or
More Past
Due
Total Amortized Cost
Current30 - 59
Days Past
Due		60 - 89
Days Past
Due		90 Days or
More Past
Due
Total Amortized Cost
CRE$7,000,817 $— $— $6,084 $7,006,901 $6,768,897 $751 $14,867 $26,356 $6,810,871 
C&I8,593,333 23,846 8,828 55,159 8,681,166 8,893,254 6,136 48,711 81,374 9,029,475 
Pinnacle - municipal finance636,945 — — — 636,945 619,374 — — — 619,374 
Franchise and equipment finance
71,637 — 103 — 71,740 102,746 — — — 102,746 
Mortgage warehouse lending
876,771 — — — 876,771 728,241 — — — 728,241 
1-4 single family residential5,742,182 39,911 7,189 18,630 5,807,912 6,021,772 48,099 4,468 17,620 6,091,959 
Government insured residential564,046 78,601 29,614 175,377 847,638 604,334 101,672 25,926 159,109 891,041 
$23,485,731 $142,358 $45,734 $255,250 $23,929,073 $23,738,618 $156,658 $93,972 $284,459 $24,273,707 
Included in the table above is the guaranteed portion of SBA loans past due by 90 days or more totaling $31 million ($25 million of C&I and $6 million of CRE) and $34 million at June 30, 2026 and December 31, 2025, respectively.
Loans contractually delinquent by 90 days or more and still accruing totaled $176 million and $159 million at June 30, 2026 and December 31, 2025, respectively, substantially all of which were government insured residential loans. These loans are Buyout Loans, which the Company buys out of GNMA securitizations upon default.
The following table presents information about loans on non-accrual status at the dates indicated (in thousands):
June 30, 2026December 31, 2025
Amortized CostAmortized Cost With No Related AllowanceAmortized CostAmortized Cost With No Related Allowance
CRE$36,255 $3,731 $108,959 $74,976 
C&I160,599 35,638 238,267 88,112 
Franchise and equipment finance
1,036 1,036 2,516 2,516 
1-4 single family residential26,034 — 22,876 — 
$223,924 $40,405 $372,618 $165,604 
Included in the table above is the guaranteed portion of non-accrual SBA loans totaling $31.8 million and $37.9 million at June 30, 2026 and December 31, 2025, respectively. The amount of interest income recognized on non-accrual loans was insignificant for the three and six months ended June 30, 2026 and 2025. The amount of additional interest income that would have been recognized on non-accrual loans had they performed in accordance with their contractual terms was not material for the three and six months ended June 30, 2026 and 2025.
Collateral dependent loans
The following table presents the amortized cost basis of collateral dependent loans at the dates indicated (in thousands):
June 30, 2026December 31, 2025
Amortized CostExtent to Which Secured by CollateralAmortized CostExtent to Which Secured by Collateral
CRE$36,239 $35,615 $112,494 $112,071 
C&I145,344 102,096 170,222 142,356 
Franchise and equipment finance 1,035 1,035 2,516 2,516 
$182,618 $138,746 $285,232 $256,943 
Collateral for the CRE loan class generally consists of commercial real estate, or for certain construction loans, residential real estate. Collateral for C&I loans generally consists of equipment, accounts receivable, inventory and other business assets and for owner-occupied commercial real estate loans, may also include commercial real estate. Franchise and equipment finance loans may be collateralized by franchise value or by equipment. There were no significant changes to the extent to which collateral secured collateral dependent loans during the six months ended June 30, 2026.
Foreclosure of residential real estate
The recorded investment in residential loans in the process of foreclosure was $117 million, of which $107 million was government insured at June 30, 2026, and $104 million, of which $96 million was government insured at December 31, 2025. The carrying amount of foreclosed residential real estate included in other assets in the accompanying consolidated balance sheet was insignificant at June 30, 2026 and December 31, 2025
Loan Modifications
The following tables summarize loans that were modified for borrowers experiencing financial difficulty, by type of modification, during the periods indicated (dollars in thousands):
Three Months Ended June 30, 2026
Combination
Interest Rate ReductionTerm Extension
Interest Rate Reduction and Term Extension
Interest Rate Reduction and Other than Insignificant Payment Delays
Term Extension and Other than Insignificant Payment Delays
Other (1)
Total
% Modified in Portfolio Segment
CRE$— $35,431 $— $— $29,922 $— $65,353 1 %
C&I— 6,235 — — 52,184 — 58,419 1 %
Franchise and equipment finance— 2,132 — — — 2,132 3 %
1-4 single family residential141 — — — — — 141 — %
Government insured residential— 8,685 4,603 — — — 13,288 2 %
$141 $52,483 $4,603 $— $82,106 $— $139,333 1 %
(1)Other modifications include loans that experienced a combination of Interest Rate Reduction, Term Extension and Other than Insignificant Payment Delays.
Six Months Ended June 30, 2026
Combination
Interest Rate ReductionTerm Extension
Interest Rate Reduction and Term Extension
Interest Rate Reduction and Other than Insignificant Payment Delays
Term Extension and Other than Insignificant Payment Delays
Other (1)
Total
% Modified in Portfolio Segment
CRE$— $35,431 $— $— $29,922 $— $65,353 1 %
C&I118 6,235 — — 52,184 23,216 81,753 1 %
Franchise and equipment finance — 2,132 — — — 2,132 3 %
1-4 single family residential906 — — — — — 906 — %
Government insured residential— 11,344 4,603 — — — 15,947 2 %
$1,024 $55,142 $4,603 $— $82,106 $23,216 $166,091 1 %
(1)Other modifications include loans that experienced a combination of Interest Rate Reduction, Term Extension and Other than Insignificant Payment Delays.

Three Months Ended June 30, 2025
Combination
Interest Rate ReductionTerm ExtensionOther than Insignificant Payment DelaysInterest Rate Reduction and Term ExtensionInterest Rate Reduction and Other than Insignificant Payment DelaysTerm Extension and Other than Insignificant Payment DelaysTotal% Modified in Portfolio Segment
CRE$— $91,833 $— $— $— $— $91,833 1 %
C&I— 10,451 29,816 — — — 40,267 — %
1-4 single family residential36 — — — — — 36 36 — %
Government insured residential— 12,713 — 7,145 — — 19,858 2 %
$36 $114,997 $29,816 $7,145 $— $— $151,994 1 %
Six Months Ended June 30, 2025
Combination
Interest Rate ReductionTerm ExtensionOther than Insignificant Payment Delays
Interest Rate Reduction and Term Extension
Interest Rate Reduction and Other than Insignificant Payment Delays
Term Extension and Other than Insignificant Payment Delays
Total
% Modified in Portfolio Segment
CRE$— $91,833 $— $— $8,912 $— $100,745 2 %
C&I— 10,451 50,395 — — 6,587 67,433 1 %
1-4 single family residential36 — — — — — 36 — %
Government insured residential— 17,653 — 8,668 — — 26,321 2 %
$36 $119,937 $50,395 $8,668 $8,912 $6,587 $194,535 1 %
The following tables summarize the financial effect of the modifications made to borrowers experiencing difficulty, during the periods indicated:
Three Months Ended June 30, 2026
Financial Effect
Interest Rate Reduction:
1-4 single family residential
Reduced weighted average contractual interest rate from 6.9% to 6.4%.
Term Extension:
CRE
Added a weighted average 0.4 year to the term of the modified loans.
C&I
Added a weighted average 0.2 year to the term of the modified loans.
Franchise and equipment finance
Added a weighted average 1.5 years to the term of the modified loans.
Government insured residential
Added a weighted average 13.9 years to the term of the modified loans.
Combination - Interest Rate Reduction and Term Extension:
Government insured residential
Reduced weighted average contractual interest rate from 7.0% to 6.5% and added a weighted average 6.0 years to the term of the modified loans.
Combination - Term Extension and Other than Insignificant Payment Delays:
CRE
Added a weighted average 2.0 years to the term of the modified loans and provided 2.0 years of payment deferral.
C&I
Added a weighted average 1.4 years to the term of the modified loans and provided 2.0 years of payment deferral.
Six Months Ended June 30, 2026
Financial Effect
Interest Rate Reduction:
C&I
Reduced weighted average contractual interest rate from 11.3% to 9.8%
1-4 single family residential
Reduced weighted average contractual interest rate from 6.5% to 6.2%.
Term Extension:
CRE
Added a weighted average 0.4 years to the term of the modified loans.
C&I
Added a weighted average 0.3 years to the term of the modified loans.
Franchise and equipment finance
Added a weighted average 1.5 years to the term of the modified loans.
Government insured residential
Added a weighted average 13.9 years to the term of the modified loans.
Combination - Interest Rate Reduction and Term Extension:
Government insured residential
Reduced weighted average contractual interest rate from 7.0% to 6.5% and added a weighted average 6.0 years to the term of the modified loans.
Combination - Term Extension and Other than Insignificant Payment Delays:
CRE
Added a weighted average 4.0 years to the term of the modified loans and provided 2.0 years of payment deferral.
C&I
Added a weighted average 2.7 years to the term of the modified loans and provided 1.9 years of payment deferral.
Other:
C&I
Added a weighted average 1.9 years to the term of the modified loans, reduced weighted average contractual interest rate from 11.7% to 8.2%, and provided 3.8 years of payment deferral.
Three Months Ended June 30, 2025
Financial Effect
Interest Rate Reduction:
1-4 single family residential
Reduced weighted average contractual interest rate from 8.3% to 7.0%.
Term Extension:
CRE
Added a weighted average 0.9 year to the term of the modified loans.
C&I
Added a weighted average 0.6 year to the term of the modified loans.
Government insured residential
Added a weighted average 12.5 years to the term of the modified loans.
Other than Insignificant Payment Delays:
C&I
Provided 0.9 year of payment deferral.
Combination - Interest Rate Reduction and Term Extension:
Government insured residential
Reduced weighted average contractual interest rate from 7.3% to 7.1% and added a weighted average 3.5 years to the term of the modified loans.
Six Months Ended June 30, 2025
Financial Effect
Interest Rate Reduction:
1-4 single family residential
Reduced weighted average contractual interest rate from 8.3% to 7.0%.
Term Extension:
CRE
Added a weighted average 0.9 year to the term of the modified loans.
C&I
Added a weighted average 0.9 year to the term of the modified loans.
Government insured residential
Added a weighted average 12.1 years to the term of the modified loans.
Other than Insignificant Payment Delays:
C&I
Provided 0.7 year of payment deferral.
Combination - Interest Rate Reduction and Term Extension:
Government insured residential
Reduced weighted average contractual interest rate from 7.3% to 7.1% and added a weighted average 3.1 years to the term of the modified loans.
Combination - Interest Rate Reduction and Other than Insignificant Payment Delays:
CRE
Reduced weighted average contractual interest rate from 4.3% to 3.5% and provided 0.7 year of payment deferral.
Combination - Term Extension and Other than Insignificant Payment Delays:
C&I
Added a weighted average 0.6 year to the term of the modified loans and provided 1.3 years of payment deferral.
The following tables present the aging at the dates indicated, of loans that were modified within the previous 12 months (in thousands):
June 30, 2026
Current 30-59 Days Past Due60-89 Days Past Due 90 Days or More Past DueTotal
CRE$91,013 $— $— $— $91,013 
C&I75,491 2,000 — 4,263 81,754 
Franchise and equipment finance 2,132 — — — 2,132 
1-4 single family residential 906 86 — — 992 
Government insured residential 12,213 5,637 3,364 15,380 36,594 
$181,755 $7,723 $3,364 $19,643 $212,485 
June 30, 2025
Current 30-59 Days Past Due60-89 Days Past Due 90 Days or More Past DueTotal
CRE$163,759 $— $— $16,450 $180,209 
C&I94,846 2,148 — 826 97,820 
Franchise and equipment finance 1,455 — — — 1,455 
1-4 single family residential 36 169 — — 205 
Government insured residential 17,514 6,847 4,029 9,102 37,492 
$277,610 $9,164 $4,029 $26,378 $317,181 
The following tables summarize loans that were modified within the previous 12 months and defaulted during the periods indicated (in thousands):
Three Months Ended June 30,
20262025
Term ExtensionCombination - Interest Rate Reduction and Term ExtensionCombination - Term Extension and Other than Insignificant Payment DelaysTotalTerm ExtensionOther than Insignificant Payment DelaysCombination - Interest Rate Reduction and Term ExtensionTotal
C&I$— $— $4,263 $4,263 $— $826 $— $826 
Government insured residential1,763 2,117 — 3,880 2,685 — 2,529 5,214 
$1,763 $2,117 $4,263 $8,143 $2,685 $826 $2,529 $6,040 
Six Months Ended June 30,
20262025
Term ExtensionCombination - Interest Rate Reduction and Term Extension Combination - Term Extension and Other than Insignificant Payment Delays TotalTerm ExtensionOther than Insignificant Payment DelaysCombination - Interest Rate Reduction and Term ExtensionTotal
C&I$— $— 4,263 $4,263 $— $1,007 $— $1,007 
Government insured residential 7,532 5,827 — 13,359 5,859 — 3,901 9,760 
$7,532 $5,827 4,263 $17,622 $5,859 $1,007 $3,901 $10,767