The following tables present a disaggregated analysis of activity in the allowance for credit losses for the three and nine months ended September 30, 2026 and 2025:


(Dollars in thousands)	Residential Mortgage Sr.			Residential Mortgage Jr.			HELOC			Residential Construction			Comm Constr. & Dev.			Consumer			Multifamily			Municipal			CRE Owner- Occupied			Non-Owner- Occupied CRE			C & I			Total
Three months ended September 30, 2026
Allowance for credit losses:
Balance at end of period June 30, 2026	$	65,629		$	1,133		$	14,085		$	9,353		$	55,076		$	16,616		$	59,324		$	1,819		$	72,196		$	178,804		$	112,629		$	586,664
Charge-offs		(1,472	)		—			(69	)		—			(56	)		(2,464	)		—			—			(327	)		(5,322	)		(8,015	)		(17,725	)
Recoveries		186			55			156			—			35			350			848			—			1,907			242			1,629			5,408
Net (charge-offs) recoveries		(1,286	)		55			87			—			(21	)		(2,114	)		848			—			1,580			(5,080	)		(6,386	)		(12,317	)
Provision (recovery) (1)		72			95			652			(349	)		(4,947	)		889			(513	)		21			(3,898	)		11,317			11,232			14,571
Balance at end of period September 30, 2026	$	64,415		$	1,283		$	14,824		$	9,004		$	50,108		$	15,391		$	59,659		$	1,840		$	69,878		$	185,041		$	117,475		$	588,918

Three months ended September 30, 2025
Allowance for credit losses:
Balance at end of period June 30, 2025	$	54,204		$	868		$	13,884		$	7,150		$	76,297		$	18,685		$	51,088		$	2,279		$	88,223		$	165,193		$	143,175		$	621,046
Charge-offs		(698	)		—			(66	)		—			—			(2,969	)		—			—			(655	)		—			(33,174	)		(37,562	)
Recoveries		122			190			110			—			108			764			—			—			50			2,048			2,016			5,408
Net (charge-offs) recoveries		(576	)		190			44			—			108			(2,205	)		—			—			(605	)		2,048			(31,158	)		(32,154	)
Provision (recovery) (1)		108			(54	)		872			2,190			(18,512	)		2,201			13,825			(168	)		(14,023	)		10,022			4,780			1,241
Balance at end of period September 30, 2025	$	53,736		$	1,004		$	14,800		$	9,340		$	57,893		$	18,681		$	64,913		$	2,111		$	73,595		$	177,263		$	116,797		$	590,133

(1)

The Day 1 loan charge-offs for Independent loans were recorded to conform with the Company’s charge-off policies and practices.

(2)

A provision for credit losses for unfunded commitments of $5.8 million in the third quarter of 2026, compared to a provision for credit losses of $3.8 million recorded during the third quarter of 2025 for the allowance for credit losses for unfunded commitments that is not included in the above table.


(Dollars in thousands)	Residential Mortgage Sr.			Residential Mortgage Jr.			HELOC			Residential Construction			Comm Constr. & Dev.			Consumer			Multifamily			Municipal			CRE Owner- Occupied			Non-Owner- Occupied CRE			C & I			Total
Nine months ended September 30, 2026
Allowance for credit losses:
Balance at end of period December 31, 2025	$	55,947		$	1,356		$	14,150		$	8,732		$	53,494		$	19,280		$	58,678		$	1,799		$	73,871		$	174,797		$	123,093		$	585,197
Charge-offs		(4,113	)		—			(268	)		—			(222	)		(6,768	)		—			—			(698	)		(6,291	)		(25,541	)		(43,901	)
Recoveries		314			152			585			—			403			2,065			1,010			—			2,162			298			6,241			13,230
Net (charge-offs) recoveries		(3,799	)		152			317			—			181			(4,703	)		1,010			—			1,464			(5,993	)		(19,300	)		(30,671	)
Provision (recovery) (2)		12,267			(225	)		357			272			(3,567	)		814			(29	)		41			(5,457	)		16,237			13,682			34,392
Balance at end of period September 30, 2026	$	64,415		$	1,283		$	14,824		$	9,004		$	50,108		$	15,391		$	59,659		$	1,840		$	69,878		$	185,041		$	117,475		$	588,918

Nine months ended September 30, 2025
Allowance for credit losses:
Balance at end of period December 31, 2024	$	42,687		$	432		$	14,845		$	9,298		$	65,553		$	17,484		$	22,279		$	1,197		$	78,753		$	111,538		$	101,214		$	465,280
Allowance Adjustment - FMV for Independent merger		1,852			—			—			—			6,448			114			20,359			—			8,075			93,820			4,773			135,441
Initial Allowance for Non-PCD loans acquired during period		8,910			85			91			4,700			11,751			254			3,805			1,947			3,186			31,557			13,685			79,971
Independent Day 1 Loan Net Charge-offs PCD (1)		(61	)		—			—			—			—			(2,323	)		(18,065	)		—			(1,016	)		(13,036	)		(22,187	)		(56,688	)
Charge-offs		(1,590	)		(14	)		(295	)		—			(16	)		(6,958	)		—			—			(1,631	)		—			(46,445	)		(56,949	)
Recoveries		516			279			615			—			521			2,123			—			—			167			2,391			6,496			13,108
Net recoveries (charge-offs)		(1,135	)		265			320			—			505			(7,158	)		(18,065	)		—			(2,480	)		(10,645	)		(62,136	)		(100,529	)
Provision (recovery) (2)		1,422			222			(456	)		(4,658	)		(26,364	)		7,987			36,535			(1,033	)		(13,939	)		(49,007	)		59,261			9,970
Balance at end of period September 30, 2025	$	53,736		$	1,004		$	14,800		$	9,340		$	57,893		$	18,681		$	64,913		$	2,111		$	73,595		$	177,263		$	116,797		$	590,133

(1)

The Day 1 loan charge-offs for Independent, inclusive of measurement period adjustments, recorded to conform with the Company’s charge-off policies and practices.

(2)

A provision for credit losses of $12.7 million was recorded during the first nine months of 2026. This compares to a provision for credit losses of $23.2 million during the first nine months of 2025, including $12.1 million for the initial provision for credit losses recorded for unfunded commitments acquired from Independent during the first quarter of 2025, that is not included in the above table.