From time to time the Company and its subsidiaries may be exposed to loss contingencies. In the ordinary course of business, those contingencies may include, known but unasserted claims, and legal / regulatory inquiries or examinations. The Company records these loss contingencies as a liability when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. In the opinion of management, the Company maintains a liability that is in an estimated amount sufficient to cover said loss contingencies, if any, at the reporting dates. The Company enters, from time to time, into agreements to purchase syndicated loans. The amount ultimately purchased is determinable upon confirmation and settlement of the transaction. The Company does not assume credit exposure associated with the underlying loans prior to such confirmation and settlement.

On October 21, 2025, the Company entered into a Wind-down and Settlement Agreement (the “Wind-down Agreement”) with a commercial borrower to resolve an existing loan participation agreement. Under the Wind-down Agreement, the Company assumed the risk of future credit losses under the participation agreement, up to a cumulative cap of $7.7 million through June 30, 2026 (the “Loss Cap”). If actual credit losses were below the Loss Cap as of that date, the Company would pay the difference to the borrower by June 30, 2026. As of March 31, 2026, the Company had incurred actual credit losses totaling $7.7 million. As a result, the maximum amount of the Loss Cap was reached, and, therefore, the Company does not expect to incur any additional losses with respect to this loan participation agreement. As part of the Wind-down Agreement, the borrower agreed to irrevocably and unconditionally guarantee the full and timely payment of all amounts due to the Company under the loan participation agreement that exceed the Loss Cap, up to a maximum of $13.9 million. As of September 30, 2026, the Company had no outstanding balance of the loan participation agreement and no associated credit risk.


(in thousands)	Three Months Ended September 30,				Nine Months Ended September 30,

	2026		2025		2026		2025

Balances at beginning of period	$	9,792	$	9,692	$	9,742	$	5,942
(Reversal of) provision for credit losses - off balance sheet exposures	(2,700)		(650)		(2,650)		3,100
Balances at end of period	$	7,092	$	9,042	$	7,092	$	9,042