| Loans and Allowance for Credit Losses on Loans |
Loans and Allowance for Credit Losses on Loans Loans are summarized by portfolio segment as follows: | | | | | | | | | | | | | | | (in thousands) | September 30, 2026 | | December 31, 2025 | | | | | | Loans held for investment(1)(2): | | | | | Commercial | $ | 13,428,328 | | | $ | 12,163,545 | | | Mortgage finance | 5,441,689 | | | 6,064,019 | | | Commercial real estate | 4,786,513 | | | 5,378,712 | | | Consumer | 426,460 | | | 433,926 | | | | | | | | | | | | | | | Loans held for investment | 24,082,990 | | | 24,040,202 | | | | | | | | | | | Allowance for credit losses on loans | (270,333) | | | (270,557) | | | Total loans held for investment, net | $ | 23,812,657 | | | $ | 23,769,645 | | | | | | | | | | | | | | | | | |
(1) Excludes accrued interest receivable of $106.9 million and $107.3 million at September 30, 2026 and December 31, 2025, respectively, that is recorded in accrued interest receivable and other assets on the consolidated balance sheets. (2) Loans are presented net of deferred loan fees and costs totaling $108.0 million and $106.8 million at September 30, 2026 and December 31, 2025, respectively. The following tables summarize loans held for investment by year of origination and internally assigned credit grades: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (in thousands) | 2026 | 2025 | 2024 | 2023 | 2022 | 2021
and prior | Revolving lines of credit | Revolving lines of credit converted to term loans | Total | | September 30, 2026 | | | | | | | | | | | Commercial | | | | | | | | | | | (1-7) Pass | $ | 1,792,251 | | $ | 1,586,431 | | $ | 819,811 | | $ | 513,166 | | $ | 497,666 | | $ | 145,659 | | $ | 7,534,860 | | $ | 11,601 | | $ | 12,901,445 | | | (8) Special mention | 3,341 | | 55,680 | | 40,812 | | 14,904 | | 19 | | 1,262 | | 194,606 | | 96 | | 310,720 | | | (9) Substandard - accruing | 1,804 | | 23,114 | | 38,598 | | 363 | | 10,927 | | 34,906 | | 23,606 | | — | | 133,318 | | | (9+) Non-accrual | 3,135 | | 13,642 | | — | | 17,024 | | 19,985 | | 11,483 | | 17,576 | | — | | 82,845 | | | Total commercial | $ | 1,800,531 | | $ | 1,678,867 | | $ | 899,221 | | $ | 545,457 | | $ | 528,597 | | $ | 193,310 | | $ | 7,770,648 | | $ | 11,697 | | $ | 13,428,328 | | | Mortgage finance | | | | | | | | | | | (1-7) Pass | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 5,441,689 | | $ | — | | $ | 5,441,689 | | | (8) Special mention | — | | — | | — | | — | | — | | — | | — | | — | | — | | | (9) Substandard - accruing | — | | — | | — | | — | | — | | — | | — | | — | | — | | | (9+) Non-accrual | — | | — | | — | | — | | — | | — | | — | | — | | — | | | Total mortgage finance | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 5,441,689 | | $ | — | | $ | 5,441,689 | | | Commercial real estate | | | | | | | | | | | (1-7) Pass | $ | 882,493 | | $ | 871,100 | | $ | 615,750 | | $ | 691,454 | | $ | 697,574 | | $ | 625,658 | | $ | 143,648 | | $ | 5,232 | | $ | 4,532,909 | | | (8) Special mention | — | | — | | 4,323 | | — | | 142,393 | | 60,002 | | 7,000 | | — | | 213,718 | | | (9) Substandard - accruing | — | | — | | — | | 362 | | — | | 101 | | — | | — | | 463 | | | (9+) Non-accrual | — | | — | | 18,500 | | — | | 20,923 | | — | | — | | — | | 39,423 | | | Total commercial real estate | $ | 882,493 | | $ | 871,100 | | $ | 638,573 | | $ | 691,816 | | $ | 860,890 | | $ | 685,761 | | $ | 150,648 | | $ | 5,232 | | $ | 4,786,513 | | | Consumer | | | | | | | | | | | (1-7) Pass | $ | 17,932 | | $ | 28,487 | | $ | 30,948 | | $ | 22,296 | | $ | 42,979 | | $ | 162,237 | | $ | 119,660 | | $ | — | | $ | 424,539 | | | (8) Special mention | — | | — | | — | | — | | — | | 1,502 | | 350 | | — | | 1,852 | | | (9) Substandard - accruing | — | | — | | — | | — | | — | | — | | — | | — | | — | | | (9+) Non-accrual | — | | — | | — | | — | | — | | 69 | | — | | — | | 69 | | | Total consumer | $ | 17,932 | | $ | 28,487 | | $ | 30,948 | | $ | 22,296 | | $ | 42,979 | | $ | 163,808 | | $ | 120,010 | | $ | — | | $ | 426,460 | | | Total | $ | 2,700,956 | | $ | 2,578,454 | | $ | 1,568,742 | | $ | 1,259,569 | | $ | 1,432,466 | | $ | 1,042,879 | | $ | 13,482,995 | | $ | 16,929 | | $ | 24,082,990 | | | Gross charge-offs | $ | 184 | | $ | 3,201 | | $ | 7,314 | | $ | 16,359 | | $ | 7,636 | | $ | 3,857 | | $ | 10,885 | | $ | — | | $ | 49,436 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (in thousands) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020
and prior | Revolving lines of credit | Revolving lines of credit converted to term loans | Total | | December 31, 2025 | | | | | | | | | | | Commercial | | | | | | | | | | | (1-7) Pass | $ | 2,038,311 | | $ | 1,164,863 | | $ | 671,070 | | $ | 670,995 | | $ | 107,970 | | $ | 143,631 | | $ | 6,977,639 | | $ | 9,359 | | $ | 11,783,838 | | | (8) Special mention | 7,659 | | 16,204 | | 16,093 | | 42,441 | | 15,346 | | 1,239 | | 39,073 | | — | | 138,055 | | | (9) Substandard - accruing | 25,513 | | 8,824 | | 44,506 | | — | | 34,641 | | 4,192 | | 27,830 | | — | | 145,506 | | | (9+) Non-accrual | 11,293 | | — | | 2,959 | | 36,390 | | — | | 11,639 | | 33,865 | | — | | 96,146 | | | Total commercial | $ | 2,082,776 | | $ | 1,189,891 | | $ | 734,628 | | $ | 749,826 | | $ | 157,957 | | $ | 160,701 | | $ | 7,078,407 | | $ | 9,359 | | $ | 12,163,545 | | | Mortgage finance | | | | | | | | | | | (1-7) Pass | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 6,064,019 | | $ | — | | $ | 6,064,019 | | | (8) Special mention | — | | — | | — | | — | | — | | — | | — | | — | | — | | | (9) Substandard - accruing | — | | — | | — | | — | | — | | — | | — | | — | | — | | | (9+) Non-accrual | — | | — | | — | | — | | — | | — | | — | | — | | — | | | Total mortgage finance | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 6,064,019 | | $ | — | | $ | 6,064,019 | | | Commercial real estate | | | | | | | | | | | (1-7) Pass | $ | 781,062 | | $ | 565,727 | | $ | 941,760 | | $ | 1,543,106 | | $ | 423,708 | | $ | 608,352 | | $ | 254,480 | | $ | 5,305 | | $ | 5,123,500 | | | (8) Special mention | 743 | | 45,137 | | 728 | | 90,752 | | 61,132 | | 1,530 | | 7,800 | | 766 | | 208,588 | | | (9) Substandard - accruing | 10 | | 25,880 | | — | | — | | — | | — | | — | | — | | 25,890 | | | (9+) Non-accrual | — | | — | | — | | 20,734 | | — | | — | | — | | — | | 20,734 | | | Total commercial real estate | $ | 781,815 | | $ | 636,744 | | $ | 942,488 | | $ | 1,654,592 | | $ | 484,840 | | $ | 609,882 | | $ | 262,280 | | $ | 6,071 | | $ | 5,378,712 | | | Consumer | | | | | | | | | | | (1-7) Pass | $ | 36,507 | | $ | 37,851 | | $ | 28,181 | | $ | 50,765 | | $ | 72,924 | | $ | 113,440 | | $ | 94,258 | | $ | — | | $ | 433,926 | | | (8) Special mention | — | | — | | — | | — | | — | | — | | — | | — | | — | | | (9) Substandard - accruing | — | | — | | — | | — | | — | | — | | — | | — | | — | | | (9+) Non-accrual | — | | — | | — | | — | | — | | — | | — | | — | | — | | | Total Consumer | $ | 36,507 | | $ | 37,851 | | $ | 28,181 | | $ | 50,765 | | $ | 72,924 | | $ | 113,440 | | $ | 94,258 | | $ | — | | $ | 433,926 | | | Total | $ | 2,901,098 | | $ | 1,864,486 | | $ | 1,705,297 | | $ | 2,455,183 | | $ | 715,721 | | $ | 884,023 | | $ | 13,498,964 | | $ | 15,430 | | $ | 24,040,202 | | | Gross charge-offs | $ | 11,233 | | $ | 704 | | $ | 4,234 | | $ | 8,958 | | $ | 28 | | $ | 2,011 | | $ | 25,715 | | $ | — | | $ | 52,883 | |
The following table details activity in the allowance for credit losses on loans. Allocation of a portion of the allowance to one category does not preclude its availability to absorb losses in other categories. | | | | | | | | | | | | | | | | | | | | (in thousands) | Commercial | Mortgage
Finance | Commercial Real Estate | Consumer | Total | | Nine Months Ended September 30, 2026 | | | | | | | | Beginning balance | $ | 202,029 | | $ | 6,221 | | $ | 60,559 | | $ | 1,748 | | $ | 270,557 | | | | | | | | | | | Provision for credit losses on loans | 74,869 | | (2,837) | | (24,286) | | 9 | | 47,755 | | | | Charge-offs | 42,338 | | — | | 7,098 | | — | | 49,436 | | | | Recoveries | 1,266 | | — | | 184 | | 7 | | 1,457 | | | | Net charge-offs (recoveries) | 41,072 | | — | | 6,914 | | (7) | | 47,979 | | | | Ending balance | $ | 235,826 | | $ | 3,384 | | $ | 29,359 | | $ | 1,764 | | $ | 270,333 | | | Nine Months Ended September 30, 2025 | | | | | | | | Beginning balance | $ | 198,423 | | $ | 2,755 | | $ | 68,825 | | $ | 1,706 | | $ | 271,709 | | | | | | | | | | | Provision for credit losses on loans | 35,106 | | 5,944 | | (2,306) | | 75 | | 38,819 | | | | Charge-offs | 37,011 | | — | | 931 | | — | | 37,942 | | | | Recoveries | 1,019 | | — | | 413 | | 8 | | 1,440 | | | | Net charge-offs (recoveries) | 35,992 | | — | | 518 | | (8) | | 36,502 | | | | Ending balance | $ | 197,537 | | $ | 8,699 | | $ | 66,001 | | $ | 1,789 | | $ | 274,026 | | |
The Company recorded a $47.8 million provision for credit losses on loans for the nine months ended September 30, 2026, compared to $38.8 million for the same period of 2025. The $47.8 million provision for credit losses on loans resulted primarily from an increase in criticized loans and $48.0 million in net charge-offs recorded during the nine months ended September 30, 2026. Criticized loans totaled $782.4 million at September 30, 2026, compared to $634.9 million at December 31, 2025. A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. At September 30, 2026, the Company had $25.7 million in collateral-dependent commercial loans, collateralized by business assets, and $39.4 million in collateral-dependent commercial real estate loans, collateralized by real estate. The table below provides an age analysis of loans held for investment: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (in thousands) | 30-59 Days
Past Due | | 60-89 Days
Past Due | | 90 Days or More Past Due | | Total Past
Due | | Non-accrual(1) | | Current | | Total | | Non-accrual With No Allowance | | September 30, 2026 | | | | | | | | | | | | | | | | | Commercial | $ | 1,576 | | | $ | 21,888 | | | $ | 52,807 | | | $ | 76,271 | | | $ | 82,845 | | | $ | 13,269,212 | | | $ | 13,428,328 | | | $ | 13,324 | | | Mortgage finance | — | | | — | | | — | | | — | | | — | | | 5,441,689 | | | 5,441,689 | | | — | | | Commercial real estate | 1,584 | | | 1,115 | | | — | | | 2,699 | | | 39,423 | | | 4,744,391 | | | 4,786,513 | | | 18,500 | | | Consumer | 2,226 | | | — | | | 400 | | | 2,626 | | | 69 | | | 423,765 | | | 426,460 | | | — | | | Total | $ | 5,386 | | | $ | 23,003 | | | $ | 53,207 | | | $ | 81,596 | | | $ | 122,337 | | | $ | 23,879,057 | | | $ | 24,082,990 | | | $ | 31,824 | |
(1)As of September 30, 2026, $676,000 of non-accrual loans were earning interest income on a cash basis compared to $470,000 as of December 31, 2025. Additionally, $175,000 interest income was recognized on non-accrual loans for the nine months ended September 30, 2026 compared to $630,000 recognized for the same period in 2025. Accrued interest of $6.2 million and $1.5 million was reversed during the nine months ended September 30, 2026 and September 30, 2025, respectively. Modifications to Borrowers Experiencing Financial Difficulty The table below details loans held for investment made to borrowers experiencing financial difficulty that were modified during the three and nine months ended September 30, 2026 and September 30, 2025, by type of modification granted and the financial effect of those modifications: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Financial Statement Impact | | ($ in thousands) | | Payment
Deferral | Term
Extension | Payment
Deferral
and Term
Extension | | Total | Percentage of Loans Held for Investment | | Interest Rate Reduction | Term Extension (in months) | Payment Deferrals | | Three Months Ended September 30, 2026 | | | | | | | | | | | | | Commercial | | $ | 1,100 | | $ | 15,976 | | $ | — | | | $ | 17,076 | | 0.07 | % | | —% | 7 to 8 | $ | 18 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total | | $ | 1,100 | | $ | 15,976 | | $ | — | | | $ | 17,076 | | 0.07 | % | | | | | | Three Months Ended September 30, 2025 | | | | | | | | | | | | | Commercial | | $ | 791 | | $ | 8,948 | | $ | 758 | | | $ | 10,497 | | 0.04 | % | | —% | 3 to 6 | $ | 814 | | | | | | | | | | | | | | | Commercial real estate | | — | | — | | 17,505 | | | 17,505 | | 0.07 | % | | —% | 6 | 737 | | | | | | | | | | | | | | | Total | | $ | 791 | | $ | 8,948 | | $ | 18,263 | | | $ | 28,002 | | 0.12 | % | | | | | | | | | | | | | | | | | | Nine Months Ended September 30, 2026 | | | | | | | | | | | | | Commercial | | $ | 81,102 | | $ | 26,874 | | $ | — | | | $ | 107,976 | | 0.45 | % | | —% | 4 to 8 | $ | 5,356 | | | | | | | | | | | | | | | Commercial real estate | | — | | — | | 16,859 | | | 16,859 | | 0.07 | % | | —% | 6 | 737 | | | | | | | | | | | | | | | Total | | $ | 81,102 | | $ | 26,874 | | $ | 16,859 | | | $ | 124,835 | | 0.52 | % | | | | | | Nine Months Ended September 30, 2025 | | | | | | | | | | | | | Commercial | | $ | 12,100 | | $ | 19,950 | | $ | 23,126 | | | $ | 55,176 | | 0.23 | % | | —% | 3 to 26 | $ | 6,711 | | | | | | | | | | | | | | | Commercial real estate | | 18,163 | | — | | 17,505 | | | 35,668 | | 0.15 | % | | —% | 6 | $ | 1,106 | | | | | | | | | | | | | | | Total | | $ | 30,263 | | $ | 19,950 | | $ | 40,631 | | | $ | 90,844 | | 0.37 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The table below details loans held for investment that experienced a default during the periods presented subsequent to being granted a modification in the prior twelve months. Default is defined as movement to nonperforming status, foreclosure or charge-off, whichever occurs first. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (in thousands) | | | | Payment
Deferral | | Term
Extension | | Payment Deferral and Term Extension | | | | Total | | Three Months Ended September 30, 2026 | | | | | | | | | | | | | | Commercial | | | | $ | 6,688 | | | $ | — | | | $ | — | | | | | $ | 6,688 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total | | | | $ | 6,688 | | | $ | — | | | $ | — | | | | | $ | 6,688 | | | Three Months Ended September 30, 2025 | | | | | | | | | | | | | | Commercial | | | | $ | 179 | | | $ | 3,000 | | | $ | 14,613 | | | | | $ | 17,792 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total | | | | $ | 179 | | | $ | 3,000 | | | $ | 14,613 | | | | | $ | 17,792 | | | | | | | | | | | | | | | | Nine Months Ended September 30, 2026 | | | | | | | | | | | | | | Commercial | | | | $ | 17,936 | | | $ | 416 | | | $ | — | | | | | $ | 18,352 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total | | | | $ | 17,936 | | | $ | 416 | | | $ | — | | | | | $ | 18,352 | | | Nine Months Ended September 30, 2025 | | | | | | | | | | | | | | Commercial | | | | $ | 25,675 | | | $ | 9,537 | | | $ | 14,613 | | | | | $ | 49,825 | | | | | | | | | | | | | | | | Commercial real estate | | | | — | | | — | | | 13,500 | | | | | 13,500 | | | | | | | | | | | | | | | | Total | | | | $ | 25,675 | | | $ | 9,537 | | | $ | 28,113 | | | | | $ | 63,325 | |
The table below provides an age analysis of loans held for investment made to borrowers experiencing financial difficulty that were modified in the prior twelve months: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (in thousands) | | 30-89 Days
Past Due | | 90+ Days
Past Due | | Non-Accrual | | Current | | Total | | September 30, 2026 | | | | | | | | | | | | Commercial | | $ | 15,226 | | | $ | 18,000 | | | $ | 45,023 | | | $ | 33,300 | | | $ | 111,549 | | | | | | | | | | | | | Commercial real estate | | — | | | — | | | 16,295 | | | — | | | 16,295 | | | | | | | | | | | | | | Total | | $ | 15,226 | | | $ | 18,000 | | | $ | 61,318 | | | $ | 33,300 | | | $ | 127,844 | | | September 30, 2025 | | | | | | | | | | | | Commercial | | $ | 758 | | | $ | — | | | $ | 47,849 | | | $ | 18,157 | | | $ | 66,764 | | | | | | | | | | | | | Commercial real estate | | — | | | — | | | 17,506 | | | — | | | 17,506 | | | | | | | | | | | | | | Total | | $ | 758 | | | $ | — | | | $ | 65,355 | | | $ | 18,157 | | | $ | 84,270 | |
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