| Schedule of changes in allowance for loan losses |
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:
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(Dollars in thousands) |
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Residential
Mortgage Sr. |
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Residential
Mortgage Jr. |
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HELOC |
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Residential
Construction |
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Comm Constr.
& Dev. |
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Consumer |
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Multifamily |
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Municipal |
|
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CRE Owner-
Occupied |
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Non-Owner-
Occupied CRE |
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C & I |
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Total |
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Three months ended September 30, 2026 |
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|
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|
|
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Allowance for credit losses: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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Balance at end of period June 30, 2026 |
|
$ |
65,629 |
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|
$ |
1,133 |
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|
$ |
14,085 |
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$ |
9,353 |
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|
$ |
55,076 |
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$ |
16,616 |
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$ |
59,324 |
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|
$ |
1,819 |
|
|
$ |
72,196 |
|
|
$ |
178,804 |
|
|
$ |
112,629 |
|
|
$ |
586,664 |
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Charge-offs |
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(1,472 |
) |
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— |
|
|
|
(69 |
) |
|
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— |
|
|
|
(56 |
) |
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(2,464 |
) |
|
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— |
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|
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— |
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|
|
(327 |
) |
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(5,322 |
) |
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(8,015 |
) |
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(17,725 |
) |
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Recoveries |
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|
186 |
|
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|
55 |
|
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|
156 |
|
|
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— |
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|
35 |
|
|
|
350 |
|
|
|
848 |
|
|
|
— |
|
|
|
1,907 |
|
|
|
242 |
|
|
|
1,629 |
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|
5,408 |
|
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Net (charge-offs) recoveries |
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(1,286 |
) |
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|
55 |
|
|
|
87 |
|
|
|
— |
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(21 |
) |
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(2,114 |
) |
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|
848 |
|
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|
— |
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|
1,580 |
|
|
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(5,080 |
) |
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(6,386 |
) |
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(12,317 |
) |
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Provision (recovery) (1) |
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72 |
|
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|
95 |
|
|
|
652 |
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(349 |
) |
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(4,947 |
) |
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|
889 |
|
|
|
(513 |
) |
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21 |
|
|
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(3,898 |
) |
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|
11,317 |
|
|
|
11,232 |
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|
14,571 |
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Balance at end of period September 30, 2026 |
|
$ |
64,415 |
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$ |
1,283 |
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|
$ |
14,824 |
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|
$ |
9,004 |
|
|
$ |
50,108 |
|
|
$ |
15,391 |
|
|
$ |
59,659 |
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|
$ |
1,840 |
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|
$ |
69,878 |
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$ |
185,041 |
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$ |
117,475 |
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$ |
588,918 |
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Three months ended September 30, 2025 |
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Allowance for credit losses: |
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Balance at end of period June 30, 2025 |
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$ |
54,204 |
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$ |
868 |
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$ |
13,884 |
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$ |
7,150 |
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$ |
76,297 |
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$ |
18,685 |
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$ |
51,088 |
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|
$ |
2,279 |
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$ |
88,223 |
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$ |
165,193 |
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$ |
143,175 |
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$ |
621,046 |
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Charge-offs |
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|
(698 |
) |
|
|
— |
|
|
|
(66 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2,969 |
) |
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— |
|
|
|
— |
|
|
|
(655 |
) |
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|
— |
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|
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(33,174 |
) |
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|
(37,562 |
) |
|
Recoveries |
|
|
122 |
|
|
|
190 |
|
|
|
110 |
|
|
|
— |
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|
|
108 |
|
|
|
764 |
|
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|
— |
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|
— |
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|
50 |
|
|
|
2,048 |
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|
|
2,016 |
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|
5,408 |
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|
Net (charge-offs) recoveries |
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|
(576 |
) |
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|
190 |
|
|
|
44 |
|
|
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— |
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|
|
108 |
|
|
|
(2,205 |
) |
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— |
|
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|
— |
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(605 |
) |
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2,048 |
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(31,158 |
) |
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(32,154 |
) |
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Provision (recovery) (1) |
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|
108 |
|
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(54 |
) |
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|
872 |
|
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|
2,190 |
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(18,512 |
) |
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|
2,201 |
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|
13,825 |
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|
(168 |
) |
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(14,023 |
) |
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|
10,022 |
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|
4,780 |
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|
1,241 |
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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 |
|
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$ |
116,797 |
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|
$ |
590,133 |
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(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.
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|
(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 |
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Nine months ended September 30, 2026 |
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Allowance for credit losses: |
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Balance at end of period December 31, 2025 |
|
$ |
55,947 |
|
|
$ |
1,356 |
|
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$ |
14,150 |
|
|
$ |
8,732 |
|
|
$ |
53,494 |
|
|
$ |
19,280 |
|
|
$ |
58,678 |
|
|
$ |
1,799 |
|
|
$ |
73,871 |
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$ |
174,797 |
|
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$ |
123,093 |
|
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$ |
585,197 |
|
|
Charge-offs |
|
|
(4,113 |
) |
|
|
— |
|
|
|
(268 |
) |
|
|
— |
|
|
|
(222 |
) |
|
|
(6,768 |
) |
|
|
— |
|
|
|
— |
|
|
|
(698 |
) |
|
|
(6,291 |
) |
|
|
(25,541 |
) |
|
|
(43,901 |
) |
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Recoveries |
|
|
314 |
|
|
|
152 |
|
|
|
585 |
|
|
|
— |
|
|
|
403 |
|
|
|
2,065 |
|
|
|
1,010 |
|
|
|
— |
|
|
|
2,162 |
|
|
|
298 |
|
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|
6,241 |
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|
13,230 |
|
|
Net (charge-offs) recoveries |
|
|
(3,799 |
) |
|
|
152 |
|
|
|
317 |
|
|
|
— |
|
|
|
181 |
|
|
|
(4,703 |
) |
|
|
1,010 |
|
|
|
— |
|
|
|
1,464 |
|
|
|
(5,993 |
) |
|
|
(19,300 |
) |
|
|
(30,671 |
) |
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Provision (recovery) (2) |
|
|
12,267 |
|
|
|
(225 |
) |
|
|
357 |
|
|
|
272 |
|
|
|
(3,567 |
) |
|
|
814 |
|
|
|
(29 |
) |
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|
41 |
|
|
|
(5,457 |
) |
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|
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 |
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|
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|
|
|
|
|
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Nine months ended September 30, 2025 |
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Allowance for credit losses: |
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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.
|