Loans and Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2026

Loans and Allowance for Credit Losses

Summary of components of loans

The following table presents the components of the loan portfolio at September 30, 2026 and December 31, 2025:


		September 30,			December 31,
(dollars in thousands)		2026			2025
Commercial		$	627,569		$	547,245
Leases			41,854			43,407
Construction and Land Development			229,478			216,163
1-4 Family Construction			57,825			45,152
Real Estate Mortgage:
1-4 Family Mortgage			456,458			496,142
Multifamily			1,661,765			1,587,338
CRE Owner Occupied			191,664			189,754
CRE Nonowner Occupied			1,211,595			1,165,104
Total Real Estate Mortgage Loans			3,521,482			3,438,338
Consumer and Other			28,626			19,212
Total Loans, Gross			4,506,834			4,309,517
Allowance for Credit Losses			(57,819)			(56,443)
Net Deferred Loan Fees			(8,889)			(8,966)
Total Loans, Net		$	4,440,126		$	4,244,108

Summary of aging in past due loans and nonaccrual status, with and without an ACL, by loan segment

The following tables present the aging in past due loans and loans on nonaccrual status, with and without an ACL by loan segment, as of September 30, 2026 and December 31, 2025:


		Accruing Interest
					30-89 Days			90 Days or			Nonaccrual			Nonaccrual
(dollars in thousands)		Current			Past Due			More Past Due			with ACL			without ACL			Total
September 30, 2026
Commercial		$	627,569		$	—		$	—		$	—		$	—		$	627,569
Leases			41,854			—			—			—			—			41,854
Construction and Land Development			229,456			—			—			—			22			229,478
1-4 Family Construction			57,496			329			—			—			—			57,825
Real Estate Mortgage:
1-4 Family Mortgage			455,301			1,051			—			—			106			456,458
Multifamily			1,652,193			—			—			—			9,572			1,661,765
CRE Owner Occupied			191,664			—			—			—			—			191,664
CRE Nonowner Occupied			1,200,358			—			—			11,237			—			1,211,595
Total Real Estate Mortgage Loans			3,499,516			1,051			—			11,237			9,678			3,521,482
Consumer and Other			28,625			1			—			—			—			28,626
Totals		$	4,484,516		$	1,381		$	—		$	11,237		$	9,700		$	4,506,834


		Accruing Interest
					30-89 Days			90 Days or			Nonaccrual			Nonaccrual
(dollars in thousands)		Current			Past Due			More Past Due			with ACL			without ACL			Total
December 31, 2025
Commercial		$	546,499		$	746		$	—		$	—		$	—		$	547,245
Leases			43,407			—			—			—			—			43,407
Construction and Land Development			216,129			—			—			—			34			216,163
1-4 Family Construction			45,152			—			—			—			—			45,152
Real Estate Mortgage:
1-4 Family Mortgage			495,922			164			—			—			56			496,142
Multifamily			1,574,043			—			—			13,295			—			1,587,338
CRE Owner Occupied			189,754			—			—			—			—			189,754
CRE Nonowner Occupied			1,156,397			58			—			8,649			—			1,165,104
Total Real Estate Mortgage Loans			3,416,116			222			—			21,944			56			3,438,338
Consumer and Other			19,212			—			—			—			—			19,212
Totals		$	4,286,515		$	968		$	—		$	21,944		$	90		$	4,309,517

Summary of loan balances classified by credit quality indicators by year of origination

The following tables present loan balances classified by credit quality indicator by year of origination as of September 30, 2026 and December 31, 2025:


		September 30, 2026
(dollars in thousands)		2026			2025			2024			2023			2022			Prior			Revolving			Total
Commercial
Pass	$	150,304		$	118,625		$	63,739		$	11,112		$	23,446		$	30,460		$	218,140		$	615,826
Watch/Special Mention		46			—			465			—			—			171			751			1,433
Substandard		—			—			115			—			10,195			—			—			10,310
Total Commercial		150,350			118,625			64,319			11,112			33,641			30,631			218,891			627,569
Current Period Gross Write-offs		—			639			—			—			—			—			—			639

Leases
Pass		11,642			12,689			7,579			5,641			2,958			1,345			—			41,854
Total Leases		11,642			12,689			7,579			5,641			2,958			1,345			—			41,854
Current Period Gross Write-offs		—			—			—			—			—			—			—			—

Construction and Land Development
Pass		69,564			141,932			7,705			—			184			—			10,071			229,456
Substandard		—			—			22			—			—			—			—			22
Total Construction and Land Development		69,564			141,932			7,727			—			184			—			10,071			229,478
Current Period Gross Write-offs		—			—			—			—			—			—			—			—

1-4 Family Construction
Pass		24,301			5,985			645			—			—			182			26,712			57,825
Total 1-4 Family Construction		24,301			5,985			645			—			—			182			26,712			57,825
Current Period Gross Write-offs		—			—			—			—			—			—			—			—

Real Estate Mortgage:
1-4 Family Mortgage
Pass		61,135			71,939			45,411			36,309			75,774			78,089			85,425			454,082
Watch/Special Mention		190			506			—			—			352			—			—			1,048
Substandard		622			600			—			—			56			—			50			1,328
Total 1-4 Family Mortgage		61,947			73,045			45,411			36,309			76,182			78,089			85,475			456,458
Current Period Gross Write-offs		—			9			—			—			—			—			—			9

Multifamily
Pass		281,272			366,539			180,790			69,033			373,685			353,440			8,633			1,633,392
Watch/Special Mention		18,801			—			—			—			—			—			—			18,801
Substandard		1,463			—			—			—			8,109			—			—			9,572
Total Multifamily		301,536			366,539			180,790			69,033			381,794			353,440			8,633			1,661,765
Current Period Gross Write-offs		—			—			—			—			2,434			709			—			3,143

CRE Owner Occupied
Pass		26,031			19,259			20,137			21,781			51,160			45,326			2,314			186,008
Watch/Special Mention		2,325			—			—			—			—			—			—			2,325
Substandard		—			—			—			—			—			3,331			—			3,331
Total CRE Owner Occupied		28,356			19,259			20,137			21,781			51,160			48,657			2,314			191,664
Current Period Gross Write-offs		—			—			—			—			—			—			—			—

CRE Nonowner Occupied
Pass		281,613			290,571			208,033			55,387			196,884			152,630			8,131			1,193,249
Substandard		7,193			10,263			890			—			—			—			—			18,346
Total CRE Nonowner Occupied		288,806			300,834			208,923			55,387			196,884			152,630			8,131			1,211,595
Current Period Gross Write-offs		—			—			—			—			—			—			—			—

Total Real Estate Mortgage Loans		680,645			759,677			455,261			182,510			706,020			632,816			104,553			3,521,482

Consumer and Other
Pass		1,348			3,197			131			232			138			240			23,340			28,626
Total Consumer and Other		1,348			3,197			131			232			138			240			23,340			28,626
Current Period Gross Write-offs		—			—			—			—			—			6			41			47

Total Period Gross Write-offs		—			648			—			—			2,434			715			41			3,838
Total Loans	$	937,850		$	1,042,105		$	535,662		$	199,495		$	742,941		$	665,214		$	383,567		$	4,506,834


		December 31, 2025
(dollars in thousands)		2025			2024			2023			2022			2021			Prior			Revolving			Total
Commercial
Pass	$	163,333		$	83,059		$	17,582		$	28,653		$	14,774		$	25,668		$	201,739		$	534,808
Watch/Special Mention		—			—			584			165			—			—			1,234			1,983
Substandard		—			135			—			10,313			6			—			—			10,454
Total Commercial		163,333			83,194			18,166			39,131			14,780			25,668			202,973			547,245
Current Period Gross Write-offs		21			—			1,239			58			186			—			—			1,504

Leases
Pass		15,721			11,057			8,412			5,390			1,749			1,078			—			43,407
Total Leases		15,721			11,057			8,412			5,390			1,749			1,078			—			43,407
Current Period Gross Write-offs		—			—			—			15			—			—			—			15

Construction and Land Development
Pass		158,592			42,019			1,598			222			412			—			13,286			216,129
Substandard		—			34			—			—			—			—			—			34
Total Construction and Land Development		158,592			42,053			1,598			222			412			—			13,286			216,163
Current Period Gross Write-offs		—			—			—			—			—			—			—			—

1-4 Family Construction
Pass		29,621			2,910			—			196			186			—			12,239			45,152
Total 1-4 Family Construction		29,621			2,910			—			196			186			—			12,239			45,152
Current Period Gross Write-offs		—			—			—			—			—			—			—			—

Real Estate Mortgage:
1-4 Family Mortgage
Pass		98,718			68,467			43,294			85,577			66,080			47,581			85,425			495,142
Substandard		944			—			—			56			—			—			—			1,000
Total 1-4 Family Mortgage		99,662			68,467			43,294			85,633			66,080			47,581			85,425			496,142
Current Period Gross Write-offs		—			—			—			—			—			—			—			—

Multifamily
Pass		440,012			166,790			77,979			405,405			304,191			124,609			10,647			1,529,633
Watch/Special Mention		31,728			—			2,201			—			—			—			—			33,929
Substandard		13,296			—			—			10,480			—			—			—			23,776
Total Multifamily		485,036			166,790			80,180			415,885			304,191			124,609			10,647			1,587,338
Current Period Gross Write-offs		—			—			—			—			—			—			—			—

CRE Owner Occupied
Pass		22,102			20,740			23,532			52,754			28,295			26,910			1,932			176,265
Watch/Special Mention		—			—			1,510			5,823			432			2,171			1,842			11,778
Substandard		—			—			—			—			1,711			—			—			1,711
Total CRE Owner Occupied		22,102			20,740			25,042			58,577			30,438			29,081			3,774			189,754
Current Period Gross Write-offs		—			—			—			—			—			—			—			—

CRE Nonowner Occupied
Pass		367,117			252,912			70,464			216,814			123,618			113,955			4,110			1,148,990
Watch/Special Mention		—			—			—			—			—			—			133			133
Substandard		15,080			901			—			—			—			—			—			15,981
Total CRE Nonowner Occupied		382,197			253,813			70,464			216,814			123,618			113,955			4,243			1,165,104
Current Period Gross Write-offs		—			—			—			—			—			—			—			—

Total Real Estate Mortgage Loans		988,997			509,810			218,980			776,909			524,327			315,226			104,089			3,438,338

Consumer and Other
Pass		3,046			198			306			269			44			1,074			14,275			19,212
Substandard		—			—			—			—			—			—			—			—
Total Consumer and Other		3,046			198			306			269			44			1,074			14,275			19,212
Current Period Gross Write-offs		—			—			4			—			—			—			30			34

Total Period Gross Write-offs		21			—			1,243			73			186			—			30			1,553
Total Loans	$	1,359,310		$	649,222		$	247,462		$	822,117		$	541,498		$	343,046		$	346,862		$	4,309,517

Summary of the activity in the allowance for loan losses by segment


		December 31, 2025
(dollars in thousands)		2025			2024			2023			2022			2021			Prior			Revolving			Total
Commercial
Pass	$	163,333		$	83,059		$	17,582		$	28,653		$	14,774		$	25,668		$	201,739		$	534,808
Watch/Special Mention		—			—			584			165			—			—			1,234			1,983
Substandard		—			135			—			10,313			6			—			—			10,454
Total Commercial		163,333			83,194			18,166			39,131			14,780			25,668			202,973			547,245
Current Period Gross Write-offs		21			—			1,239			58			186			—			—			1,504

Leases
Pass		15,721			11,057			8,412			5,390			1,749			1,078			—			43,407
Total Leases		15,721			11,057			8,412			5,390			1,749			1,078			—			43,407
Current Period Gross Write-offs		—			—			—			15			—			—			—			15

Construction and Land Development
Pass		158,592			42,019			1,598			222			412			—			13,286			216,129
Substandard		—			34			—			—			—			—			—			34
Total Construction and Land Development		158,592			42,053			1,598			222			412			—			13,286			216,163
Current Period Gross Write-offs		—			—			—			—			—			—			—			—

1-4 Family Construction
Pass		29,621			2,910			—			196			186			—			12,239			45,152
Total 1-4 Family Construction		29,621			2,910			—			196			186			—			12,239			45,152
Current Period Gross Write-offs		—			—			—			—			—			—			—			—

Real Estate Mortgage:
1-4 Family Mortgage
Pass		98,718			68,467			43,294			85,577			66,080			47,581			85,425			495,142
Substandard		944			—			—			56			—			—			—			1,000
Total 1-4 Family Mortgage		99,662			68,467			43,294			85,633			66,080			47,581			85,425			496,142
Current Period Gross Write-offs		—			—			—			—			—			—			—			—

Multifamily
Pass		440,012			166,790			77,979			405,405			304,191			124,609			10,647			1,529,633
Watch/Special Mention		31,728			—			2,201			—			—			—			—			33,929
Substandard		13,296			—			—			10,480			—			—			—			23,776
Total Multifamily		485,036			166,790			80,180			415,885			304,191			124,609			10,647			1,587,338
Current Period Gross Write-offs		—			—			—			—			—			—			—			—

CRE Owner Occupied
Pass		22,102			20,740			23,532			52,754			28,295			26,910			1,932			176,265
Watch/Special Mention		—			—			1,510			5,823			432			2,171			1,842			11,778
Substandard		—			—			—			—			1,711			—			—			1,711
Total CRE Owner Occupied		22,102			20,740			25,042			58,577			30,438			29,081			3,774			189,754
Current Period Gross Write-offs		—			—			—			—			—			—			—			—

CRE Nonowner Occupied
Pass		367,117			252,912			70,464			216,814			123,618			113,955			4,110			1,148,990
Watch/Special Mention		—			—			—			—			—			—			133			133
Substandard		15,080			901			—			—			—			—			—			15,981
Total CRE Nonowner Occupied		382,197			253,813			70,464			216,814			123,618			113,955			4,243			1,165,104
Current Period Gross Write-offs		—			—			—			—			—			—			—			—

Total Real Estate Mortgage Loans		988,997			509,810			218,980			776,909			524,327			315,226			104,089			3,438,338

Consumer and Other
Pass		3,046			198			306			269			44			1,074			14,275			19,212
Substandard		—			—			—			—			—			—			—			—
Total Consumer and Other		3,046			198			306			269			44			1,074			14,275			19,212
Current Period Gross Write-offs		—			—			4			—			—			—			30			34

Total Period Gross Write-offs		21			—			1,243			73			186			—			30			1,553
Total Loans	$	1,359,310		$	649,222		$	247,462		$	822,117		$	541,498		$	343,046		$	346,862		$	4,309,517

Summary of amortized cost basis of collateral dependent loans, by the primary collateral type, which are individually evaluated to determine expected credit losses, and the related ACL allocated

The following tables present the amortized cost basis of collateral dependent loans by the primary collateral type, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans, as of September 30, 2026 and December 31, 2025:


		Primary Type of Collateral
					Business									ACL
(dollars in thousands)		Real Estate			Assets			Other			Total			Allocation
September 30, 2026
Commercial		$	—		$	242		$	10,068		$	10,310		$	182
Construction and Land Development			22			—			—			22			—
Real Estate Mortgage:
1-4 Family Mortgage			1,328			—			—			1,328			—
Multifamily			9,572			—			—			9,572			—
CRE Owner Occupied			3,331			—			—			3,331			—
CRE Nonowner Occupied			19,228			—			—			19,228			5,564
Total Real Estate Mortgage Loans			33,459			—			—			33,459			5,564
Consumer and Other			—			—			—			—			—
Totals		$	33,481		$	242		$	10,068		$	43,791		$	5,746


		Primary Type of Collateral
					Business									ACL
(dollars in thousands)		Real Estate			Assets			Other			Total			Allocation
December 31, 2025
Commercial		$	72		$	159		$	10,296		$	10,527		$	134
Construction and Land Development			34			—			—			34			—
Real Estate Mortgage:
1-4 Family Mortgage			1,000			—			—			1,000			—
Multifamily			23,776			—			—			23,776			789
CRE Owner Occupied			3,553			—			—			3,553			—
CRE Nonowner Occupied			16,867			—			—			16,867			2,889
Total Real Estate Mortgage Loans			45,196			—			—			45,196			3,678
Totals		$	45,302		$	159		$	10,296		$	55,757		$	3,812