v3.26.3
Loans and Allowance for Credit Losses
 9 Months Ended
Sep. 30, 2026
Receivables [Abstract]  
Loans and Allowance for Credit Losses
Note 4    Loans and Allowance for Credit Losses
Loans consisted of the following at the dates indicated (dollars in thousands):
September 30, 2026December 31, 2025
20262025
Amortized Cost
Percent of Total Loans
Amortized Cost
Percent of Total Loans
Commercial:
Non-owner occupied commercial real estate$6,445,359 27.2 %$6,105,207 25.2 %
Construction and land628,015 2.6 %705,664 2.9 %
Owner occupied commercial real estate2,114,989 8.9 %2,020,572 8.3 %
Commercial and industrial6,457,171 27.1 %7,008,903 28.8 %
Pinnacle - municipal finance592,293 2.5 %619,374 2.6 %
Franchise and equipment finance
59,342 0.2 %102,746 0.4 %
Mortgage warehouse lending 932,290 3.9 %728,241 3.0 %
17,229,459 72.4 %17,290,707 71.2 %
Residential:
1-4 single family residential5,774,390 24.2 %6,091,959 25.1 %
Government insured residential811,507 3.4 %891,041 3.7 %
6,585,897 27.6 %6,983,000 28.8 %
Total loans23,815,356 100.0 %24,273,707 100.0 %
Allowance for credit losses(221,476)(219,825)
Loans, net$23,593,880 $24,053,882 
Premiums, discounts and deferred fees and costs, excluding the non-credit related discount on PCD loans, totaled $21 million and $22 million at September 30, 2026 and December 31, 2025, respectively. The amortized cost of PCD loans totaled $28 million and $32 million at September 30, 2026 and December 31, 2025, respectively.
Included in loans, net are direct or sales type finance leases totaling $379 million and $381 million at September 30, 2026 and December 31, 2025, respectively. The amount of income recognized from direct or sales type finance leases for the three and nine months ended September 30, 2026 and 2025 totaled $2.9 million, $7.7 million, $3.2 million and $8.9 million, respectively, and is included in interest income on loans in the consolidated statements of income.
During the three and nine months ended September 30, 2026 and 2025, the Company purchased residential loans totaling $167 million, $306 million, $62 million, and $247 million, respectively.
At September 30, 2026 and December 31, 2025, the Company had pledged loans with a carrying value of approximately $15.8 billion and $15.6 billion, respectively, as security for FHLB advances and FHLB and Federal Reserve discount window capacity.
Accrued interest receivable on loans totaled $110 million and $113 million at September 30, 2026 and December 31, 2025, respectively, and is included in other assets in the accompanying consolidated balance sheets. The amount of interest income reversed on non-accrual loans was not material for the three and nine months ended September 30, 2026 and 2025.
Allowance for credit losses
Activity in the ACL is summarized below for the periods indicated (in thousands):
Three Months Ended September 30,
20262025
CommercialResidentialTotalCommercialResidentialTotal
Beginning balance$205,141 $12,375 $217,516 $208,961 $13,769 $222,730 
Provision (recovery)10,044 236 10,280 12,451 (600)11,851 
Charge-offs(7,079)— (7,079)(15,773)— (15,773)
Recoveries759 — 759 1,073 3 1,076 
Ending balance$208,865 $12,611 $221,476 $206,712 $13,172 $219,884 
Nine Months Ended September 30,
20262025
CommercialResidentialTotalCommercialResidentialTotal
Beginning balance$208,412 $11,413 $219,825 $211,203 $11,950 $223,153 
Provision49,282 1,198 50,480 42,089 1,419 43,508 
Charge-offs(54,265)— (54,265)(52,581)(208)(52,789)
Recoveries5,436 — 5,436 6,001 11 6,012 
Ending balance$208,865 $12,611 $221,476 $206,712 $13,172 $219,884 
The ACL was determined utilizing a 2-year reasonable and supportable forecast period. The quantitative portion of the ACL was determined by weighting three third-party provided economic scenarios.
The ACL was 0.93% of total loans at September 30, 2026 compared to 0.91% at December 31, 2025. The most significant factors impacting the ACL for the nine months ended September 30, 2026 were higher specific reserves and net charge-offs. The ACL was also impacted, although to a lesser extent, by increases related to (i) a net increase in certain qualitative factors, (ii) risk rating migration, (iii) changes in the economic forecast, and decreases related to (iv) changes in portfolio composition, (v) improvements in borrower financial performance, and (vi) routine modeling and assumption updates.
The following table presents gross charge-offs during the nine months ended September 30, 2026 by year of origination (in thousands):
Gross Charge-offs By Loan Origination Year
20262025202420232022Prior to 2022Revolving LoansTotal
CRE$— $— $— $— $— $7,449 $— $7,449 
C&I458 950 4,783 16,563 15,400 791 7,768 46,713 
Franchise and equipment finance
— — — — — 103 — 103 
$458 $950 $4,783 $16,563 $15,400 $8,343 $7,768 $54,265 
The following table presents the components of the provision for credit losses for the periods indicated (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
Amount related to funded portion of loans$10,280 $11,851 $50,480 $43,508 
Amount related to off-balance sheet credit exposures(1,328)(274)(1,383)(1,122)
Total provision for credit losses$8,952 $11,577 $49,097 $42,386 
Credit quality information
Credit quality of loans held for investment is continuously monitored by dedicated commercial portfolio management and residential credit risk management functions. The Company also has a workout and recovery department that monitors the credit quality of criticized and classified loans and an independent internal credit review function.
Credit quality indicators for commercial loans
Factors that impact risk inherent in commercial portfolio segments include but are not limited to levels of economic activity or potential disruptions in economic activity, health of the national, regional and to a lesser extent global economies, interest rates, industry trends, demographic trends, inflationary trends, including particularly for commercial real estate loans the cost of insurance, patterns of and trends in customer behavior that influence demand for our borrowers' products and services, and commercial real estate values and related market dynamics. Particularly for the office sector, the evolving impact of hybrid and remote work on vacancies and valuations is a factor. Internal risk ratings are considered the most meaningful indicator of credit quality for commercial loans. Internal risk ratings are one indicator of the likelihood that a borrower will default, are a key factor influencing the level and nature of ongoing monitoring of loans and may impact the estimation of the ACL. Internal risk ratings are updated on a continuous basis. Generally, relationships with balances greater than $3 million are re-evaluated at least annually and more frequently if circumstances indicate that a change in risk rating may be warranted. The special mention rating is considered a transitional rating for loans exhibiting potential credit weaknesses that could result in deterioration of repayment prospects at some future date if not checked or corrected and that deserve management’s close attention. These borrowers may exhibit declining cash flows or revenues or increasing leverage. Loans with well-defined credit weaknesses that may result in a loss if the deficiencies are not corrected are assigned a risk rating of substandard. These borrowers may exhibit payment defaults, inadequate cash flows from current operations, operating losses, increasing balance sheet leverage, project cost overruns, unreasonable construction delays, exhausted interest reserves, declining collateral values, frequent overdrafts or past due real estate taxes. Loans with weaknesses so severe that collection in full is highly questionable or improbable, but because of certain reasonably specific pending factors have not been charged off, are assigned an internal risk rating of doubtful. 
Commercial credit exposure based on internal risk rating (in thousands):
September 30, 2026
Amortized Cost By Origination YearRevolving Loans
20262025202420232022PriorTotal
CRE
Pass$1,292,567 $1,978,943 $776,037 $596,475 $701,800 $1,259,143 $41,019 $6,645,984 
Substandard305 8,804 1,469 71,297 83,334 240,781 21,400 427,390 
Total CRE$1,292,872 $1,987,747 $777,506 $667,772 $785,134 $1,499,924 $62,419 $7,073,374 
C&I
Pass$1,191,116 $1,392,678 $824,430 $568,018 $576,326 $1,009,916 $2,391,024 $7,953,508 
Special mention— 27,781 48,642 — 16,121 2,513 12,190 107,247 
Substandard1,608 20,531 82,053 101,784 86,643 100,548 78,552 471,719 
Doubtful— — 3,514 7,518 2,842 17,529 8,283 39,686 
Total C&I$1,192,724 $1,440,990 $958,639 $677,320 $681,932 $1,130,506 $2,490,049 $8,572,160 
Pinnacle - municipal finance
Pass$130,327 $62,208 $15,526 $18,551 $56,303 $309,378 $— $592,293 
Total Pinnacle - municipal finance$130,327 $62,208 $15,526 $18,551 $56,303 $309,378 $— $592,293 
Franchise and equipment finance
Pass$— $— $— $1,588 $1,523 $52,902 $— $56,013 
Substandard— — — — — 3,329 — 3,329 
Total Franchise and equipment finance
$— $— $— $1,588 $1,523 $56,231 $— $59,342 
Mortgage warehouse lending
Pass$— $— $— $— $— $— $932,290 $932,290 
Total Mortgage warehouse lending$— $— $— $— $— $— $932,290 $932,290 
December 31, 2025
Amortized Cost By Origination YearRevolving Loans
20252024202320222021PriorTotal
CRE
Pass$1,836,664 $870,799 $822,536 $826,480 $382,747 $1,286,442 $119,505 $6,145,173 
Special mention— — 16,422 21,436 12,154 32,135 — 82,147 
Substandard34,723 — — 87,201 105,074 356,553 — 583,551 
Total CRE$1,871,387 $870,799 $838,958 $935,117 $499,975 $1,675,130 $119,505 $6,810,871 
C&I
Pass$1,693,466 $1,159,621 $795,383 $674,292 $337,040 $1,001,431 $2,852,094 $8,513,327 
Special mention— 13,739 17,160 36,538 5,255 — 20,170 92,862 
Substandard1,167 24,280 65,788 90,484 20,650 104,078 68,592 375,039 
Doubtful— — 13,462 6,377 14,954 — 13,454 48,247 
Total C&I$1,694,633 $1,197,640 $891,793 $807,691 $377,899 $1,105,509 $2,954,310 $9,029,475 
Pinnacle - municipal finance
Pass$94,045 $37,328 $55,340 $63,653 $36,700 $332,308 $— $619,374 
Total Pinnacle - municipal finance$94,045 $37,328 $55,340 $63,653 $36,700 $332,308 $— $619,374 
Franchise and equipment finance
Pass$— $— $1,778 $3,125 $22,423 $58,739 $— $86,065 
Substandard— — — — — 16,681 — 16,681 
Total Franchise and equipment finance
$— $— $1,778 $3,125 $22,423 $75,420 $— $102,746 
Mortgage warehouse lending
Pass$— $— $— $— $— $— $728,241 $728,241 
Total Mortgage warehouse lending$— $— $— $— $— $— $728,241 $728,241 
At September 30, 2026 and December 31, 2025, the balance of revolving loans converted to term loans was immaterial.
The following table presents criticized and classified commercial loans in aggregate by risk rating category at the dates indicated (in thousands):
September 30, 2026December 31, 2025
Special mention$107,247 $175,009 
Substandard - accruing730,885 674,368 
Substandard - non-accruing171,553 300,903 
Doubtful39,686 48,247 
Total $1,049,371 $1,198,527 
Credit quality indicators for residential loans
Management considers delinquency status to be the most meaningful indicator of the credit quality of residential loans, other than government insured residential loans. Delinquency status is updated at least monthly. LTV and FICO scores are also important indicators of credit quality for 1-4 single family residential loans other than government insured loans. FICO scores are generally updated semi-annually and were most recently updated in the first quarter of 2026. LTVs are typically at origination. Substantially all of the government insured residential loans are government insured Buyout Loans, which the Company buys out of GNMA securitizations upon default. For these loans, traditional measures of credit quality are not particularly relevant considering the guaranteed nature of the loans and the underlying business model. Factors that impact risk inherent in the residential portfolio segment include national and regional economic conditions such as levels of unemployment, wages and interest rates, as well as residential property values.
1-4 Single Family Residential credit exposure, excluding government insured residential loans, based on delinquency status (in thousands):
September 30, 2026
Amortized Cost By Origination Year
Days Past Due
20262025202420232022PriorTotal
Current $242,954 $239,139 $134,135 $164,955 $846,586 $4,081,387 $5,709,156 
30 - 59 Days Past Due4,940 1,140 527 2,814 8,065 24,986 42,472 
60 - 89 Days Past Due— — — 1,175 — 4,582 5,757 
90 Days or More Past Due— 158 2,144 1,067 1,123 12,513 17,005 
$247,894 $240,437 $136,806 $170,011 $855,774 $4,123,468 $5,774,390 
December 31, 2025
Amortized Cost By Origination Year
Days Past Due
20252024202320222021PriorTotal
Current $245,592 $197,279 $232,600 $920,112 $2,543,128 $1,883,061 $6,021,772 
30 - 59 Days Past Due2,445 72 884 7,390 17,045 20,263 48,099 
60 - 89 Days Past Due395 — — — 1,471 2,602 4,468 
90 Days or More Past Due159 2,016 72 975 5,380 9,018 17,620 
$248,591 $199,367 $233,556 $928,477 $2,567,024 $1,914,944 $6,091,959 
1-4 Single Family Residential credit exposure, excluding government insured residential loans, based on LTV (in thousands): 
September 30, 2026
Amortized Cost By Origination Year
LTV20262025202420232022PriorTotal
Less than 61%$51,533 $41,491 $15,634 $25,959 $198,759 $1,545,186 $1,878,562 
61% - 70% 62,419 40,666 18,453 19,347 220,861 1,077,598 1,439,344 
71% - 80%99,328 93,957 77,618 101,656 432,844 1,444,962 2,250,365 
More than 80%34,614 64,323 25,101 23,049 3,310 55,722 206,119 
$247,894 $240,437 $136,806 $170,011 $855,774 $4,123,468 $5,774,390 
December 31, 2025
Amortized Cost By Origination Year
LTV20252024202320222021PriorTotal
Less than 61%$42,822 $25,252 $41,263 $213,007 $1,035,507 $652,497 $2,010,348 
61% - 70% 43,662 24,753 28,681 241,588 715,135 454,229 1,508,048 
71% - 80% 102,327 116,351 133,730 470,437 785,474 775,835 2,384,154 
More than 80%59,780 33,011 29,882 3,445 30,908 32,383 189,409 
$248,591 $199,367 $233,556 $928,477 $2,567,024 $1,914,944 $6,091,959 
1-4 Single Family Residential credit exposure, excluding government insured residential loans, based on FICO score (in thousands):
September 30, 2026
Amortized Cost By Origination Year
FICO20262025202420232022PriorTotal
760 or greater$199,310 $168,803 $106,283 $120,866 $606,982 $3,172,936 $4,375,180 
720 - 75942,376 46,184 20,400 25,329 134,425 555,873 824,587 
719 or less or not available
6,208 25,450 10,123 23,816 114,367 394,659 574,623 
$247,894 $240,437 $136,806 $170,011 $855,774 $4,123,468 $5,774,390 
December 31, 2025
Amortized Cost By Origination Year
FICO20252024202320222021PriorTotal
760 or greater$178,910 $145,699 $167,837 $671,820 $2,058,226 $1,395,521 $4,618,013 
720 - 75954,894 35,812 37,624 144,931 324,779 287,334 885,374 
719 or less or not available
14,787 17,856 28,095 111,726 184,019 232,089 588,572 
$248,591 $199,367 $233,556 $928,477 $2,567,024 $1,914,944 $6,091,959 
Past Due and Non-Accrual Loans
The following table presents an aging of loans at the dates indicated (in thousands):
September 30, 2026December 31, 2025
Current30 - 59
Days Past
Due		60 - 89
Days Past
Due		90 Days or
More Past
Due
Total Amortized Cost
Current30 - 59
Days Past
Due		60 - 89
Days Past
Due		90 Days or
More Past
Due
Total Amortized Cost
CRE$7,046,035 $— $21,321 $6,018 $7,073,374 $6,768,897 $751 $14,867 $26,356 $6,810,871 
C&I8,469,510 16,148 5,359 81,143 8,572,160 8,893,254 6,136 48,711 81,374 9,029,475 
Pinnacle - municipal finance592,293 — — — 592,293 619,374 — — — 619,374 
Franchise and equipment finance
59,342 — — — 59,342 102,746 — — — 102,746 
Mortgage warehouse lending
932,290 — — — 932,290 728,241 — — — 728,241 
1-4 single family residential5,709,156 42,472 5,757 17,005 5,774,390 6,021,772 48,099 4,468 17,620 6,091,959 
Government insured residential542,306 76,942 21,489 170,770 811,507 604,334 101,672 25,926 159,109 891,041 
$23,350,932 $135,562 $53,926 $274,936 $23,815,356 $23,738,618 $156,658 $93,972 $284,459 $24,273,707 
Included in the table above is the guaranteed portion of SBA loans past due by 90 days or more totaling $30 million ($24 million of C&I and $6 million of CRE) and $34 million at September 30, 2026 and December 31, 2025, respectively.
Loans contractually delinquent by 90 days or more and still accruing totaled $200 million and $159 million at September 30, 2026 and December 31, 2025, respectively, the vast majority of which were government insured residential loans. These loans are Buyout Loans, which the Company buys out of GNMA securitizations upon default.
The following table presents information about loans on non-accrual status at the dates indicated (in thousands):
September 30, 2026December 31, 2025
Amortized CostAmortized Cost With No Related AllowanceAmortized CostAmortized Cost With No Related Allowance
CRE$35,676 $2,558 $108,959 $74,976 
C&I174,632 31,106 238,267 88,112 
Franchise and equipment finance
931 931 2,516 2,516 
1-4 single family residential23,673 — 22,876 — 
$234,912 $34,595 $372,618 $165,604 
Included in the table above is the guaranteed portion of non-accrual SBA loans totaling $31.5 million and $37.9 million at September 30, 2026 and December 31, 2025, respectively. The amount of interest income recognized on non-accrual loans was insignificant for the three and nine months ended September 30, 2026 and 2025. The amount of additional interest income that would have been recognized on non-accrual loans had they performed in accordance with their contractual terms was not material for the three and nine months ended September 30, 2026 and 2025.
Collateral dependent loans
The following table presents the amortized cost basis of collateral dependent loans at the dates indicated (in thousands):
September 30, 2026December 31, 2025
Amortized CostExtent to Which Secured by CollateralAmortized CostExtent to Which Secured by Collateral
CRE$35,659 $35,236 $112,494 $112,071 
C&I134,688 95,000 170,222 142,356 
Franchise and equipment finance 930 930 2,516 2,516 
$171,277 $131,166 $285,232 $256,943 
Collateral for the CRE loan class generally consists of commercial real estate, or for certain construction loans, residential real estate. Collateral for C&I loans generally consists of equipment, accounts receivable, inventory and other business assets and for owner-occupied commercial real estate loans, may also include commercial real estate. Franchise and equipment finance loans may be collateralized by franchise value or by equipment. There were no significant changes to the nature of which collateral secured collateral dependent loans during the nine months ended September 30, 2026.
Foreclosure of residential real estate
The recorded investment in residential loans in the process of foreclosure was $112 million, of which $103 million was government insured at September 30, 2026, and $104 million, of which $96 million was government insured at December 31, 2025. The carrying amount of foreclosed residential real estate included in other assets in the accompanying consolidated balance sheet was insignificant at September 30, 2026 and December 31, 2025
Loan Modifications
The following tables summarize loans that were modified for borrowers experiencing financial difficulty, by type of modification, during the periods indicated (dollars in thousands):
Three Months Ended September 30, 2026
Combination
Interest Rate ReductionTerm ExtensionOther than Insignificant Payment Delays
Interest Rate Reduction and Term Extension
Term Extension and Other than Insignificant Payment Delays
Other (1)
Total
% Modified in Portfolio Segment
CRE$— $662 $— $— $— $35,330 $35,992 1 %
C&I— 18,817 27,739 — 19,086 — 65,642 1 %
Franchise and equipment finance— — — — — — — — %
1-4 single family residential3,198 — — — — — 3,198 — %
Government insured residential— 5,734 — 3,282 — — 9,016 1 %
$3,198 $25,213 $27,739 $3,282 $19,086 $35,330 $113,848 — %
(1)Other modifications include loans that experienced a combination of Interest Rate Reduction, Term Extension and Other than Insignificant Payment Delays.
Nine Months Ended September 30, 2026
Combination
Interest Rate ReductionTerm ExtensionOther than Insignificant Payment Delays
Interest Rate Reduction and Term Extension
Term Extension and Other than Insignificant Payment Delays
Other (1)
Total
% Modified in Portfolio Segment
CRE$— $30,851 $— $— $29,424 $35,330 $95,605 1 %
C&I119 22,434 27,739 — 65,039 23,212 138,543 2 %
Franchise and equipment finance — 1,834 — — — — 1,834 3 %
1-4 single family residential4,103 — — — — — 4,103 — %
Government insured residential— 14,430 — 5,974 — — 20,404 3 %
$4,222 $69,549 $27,739 $5,974 $94,463 $58,542 $260,489 1 %
(1)Other modifications include loans that experienced a combination of Interest Rate Reduction, Term Extension and Other than Insignificant Payment Delays.

Three Months Ended September 30, 2025
Combination
Interest Rate ReductionTerm ExtensionOther than Insignificant Payment DelaysInterest Rate Reduction and Term ExtensionInterest Rate Reduction and Other than Insignificant Payment DelaysTerm Extension and Other than Insignificant Payment DelaysTotal% Modified in Portfolio Segment
CRE$— $28,170 $— $— $— $— $28,170 — %
C&I— 2,194 — — — — 2,194 — %
Government insured residential— 10,450 — 5,678 — — 16,128 2 %
$— $40,814 $— $5,678 $— $— $46,492 — %
Nine Months Ended September 30, 2025
Combination
Interest Rate ReductionTerm ExtensionOther than Insignificant Payment Delays
Interest Rate Reduction and Term Extension
Interest Rate Reduction and Other than Insignificant Payment Delays
Term Extension and Other than Insignificant Payment Delays
Total
% Modified in Portfolio Segment
CRE$— $119,337 $— $— $8,830 $— $128,167 2 %
C&I— 5,736 49,310 — — 6,406 61,452 1 %
1-4 single family residential35 — — — — — 35 — %
Government insured residential— 23,651 — 11,337 — — 34,988 4 %
$35 $148,724 $49,310 $11,337 $8,830 $6,406 $224,642 1 %
The following tables summarize the financial effect of the modifications made to borrowers experiencing difficulty, during the periods indicated:
Three Months Ended September 30, 2026
Financial Effect
Interest Rate Reduction:
1-4 single family residential
Reduced weighted average contractual interest rate from 7.2% to 6.7%.
Term Extension:
CRE
Added a weighted average 0.3 year to the term of the modified loans.
C&I
Added a weighted average 0.9 year to the term of the modified loans.
Government insured residential
Added a weighted average 16.3 years to the term of the modified loans.
Other than Insignificant Payment Delays:
C&I
Provided 1.7 year of payment deferral.
Combination - Interest Rate Reduction and Term Extension:
Government insured residential
Reduced weighted average contractual interest rate from 7.3% to 6.6% and added a weighted average 2.6 years to the term of the modified loans.
Combination - Term Extension and Other than Insignificant Payment Delays:
C&I
Added a weighted average 1.0 years to the term of the modified loans and provided 1.3 years of payment deferral.
Other:
CRE
Added a weighted average 2.0 years to the term of the modified loans, reduced weighted average contractual interest rate from 6.6% to 6.5%, and provided 1.5 years of payment deferral.
Nine Months Ended September 30, 2026
Financial Effect
Interest Rate Reduction:
C&I
Reduced weighted average contractual interest rate from 11.3% to 9.8%
1-4 single family residential
Reduced weighted average contractual interest rate from 7.1% to 6.6%.
Term Extension:
CRE
Added a weighted average 0.4 years to the term of the modified loans.
C&I
Added a weighted average 0.8 years to the term of the modified loans.
Franchise and equipment finance
Added a weighted average 1.5 years to the term of the modified loans.
Government insured residential
Added a weighted average 14.5 years to the term of the modified loans.
Other than Insignificant Payment Delays:
C&I
Provided 1.7 year of payment deferral.
Combination - Interest Rate Reduction and Term Extension:
Government insured residential
Reduced weighted average contractual interest rate from 7.2% to 6.5% and added a weighted average 4.2 years to the term of the modified loans.
Combination - Term Extension and Other than Insignificant Payment Delays:
CRE
Added a weighted average 2.0 years to the term of the modified loans and provided 2.0 years of payment deferral.
C&I
Added a weighted average 1.5 years to the term of the modified loans and provided 2.0 years of payment deferral.
Other:
CRE
Added a weighted average 2.0 years to the term of the modified loans, reduced weighted average contractual interest rate from 6.6% to 6.5%, and provided 1.5 years of payment deferral.
C&I
Added a weighted average 1.9 years to the term of the modified loans, reduced weighted average contractual interest rate from 11.7% to 8.6%, and provided 3.8 years of payment deferral.
Three Months Ended September 30, 2025
Financial Effect
Term Extension:
CRE
Added a weighted average 3.5 year to the term of the modified loans.
C&I
Added a weighted average 0.3 year to the term of the modified loans.
Government insured residential
Added a weighted average 12.2 years to the term of the modified loans.
Combination - Interest Rate Reduction and Term Extension:
Government insured residential
Reduced weighted average contractual interest rate from 7.2% to 6.6% and added a weighted average 3.0 years to the term of the modified loans.
Nine Months Ended September 30, 2025
Financial Effect
Interest Rate Reduction:
1-4 single family residential
Reduced weighted average contractual interest rate from 8.3% to 7.0%.
Term Extension:
CRE
Added a weighted average 1.5 year to the term of the modified loans.
C&I
Added a weighted average 1.2 year to the term of the modified loans.
Government insured residential
Added a weighted average 12.0 years to the term of the modified loans.
Other than Insignificant Payment Delays:
C&I
Provided 0.9 year of payment deferral.
Combination - Interest Rate Reduction and Term Extension:
Government insured residential
Reduced weighted average contractual interest rate from 7.2% to 6.8% and added a weighted average 2.7 years to the term of the modified loans.
Combination - Interest Rate Reduction and Other than Insignificant Payment Delays:
CRE
Reduced weighted average contractual interest rate from 4.3% to 3.5% and provided 0.7 year of payment deferral.
Combination - Term Extension and Other than Insignificant Payment Delays:
C&I
Added a weighted average 0.6 year to the term of the modified loans and provided 1.3 years of payment deferral.
The following tables present the aging at the dates indicated, of loans that were modified within the previous 12 months (in thousands):
September 30, 2026
Current 30-59 Days Past Due60-89 Days Past Due 90 Days or More Past DueTotal
CRE$74,283 $— $21,321 $— $95,604 
C&I132,594 737 1,094 4,119 138,544 
Franchise and equipment finance 1,834 — — — 1,834 
1-4 single family residential 2,658 1,445 — — 4,103 
Government insured residential 9,292 7,311 2,765 9,455 28,823 
$220,661 $9,493 $25,180 $13,574 $268,908 
September 30, 2025
Current 30-59 Days Past Due60-89 Days Past Due 90 Days or More Past DueTotal
CRE$190,459 $— $— $16,450 $206,909 
C&I69,692 18,500 1,996 850 91,038 
1-4 single family residential 35 — 169 — 204 
Government insured residential 14,376 6,627 6,122 14,018 41,143 
$274,562 $25,127 $8,287 $31,318 $339,294 
The following tables summarize loans that were modified within the previous 12 months and defaulted during the periods indicated (in thousands):
Three Months Ended September 30,
20262025
Interest Rate ReductionTerm ExtensionCombination - Interest Rate Reduction and Term ExtensionTotalTerm ExtensionOther than Insignificant Payment DelaysCombination - Interest Rate Reduction and Term ExtensionTotal
C&I$119 $— $— $119 $— $668 $— $668 
Government insured residential$— 1,474 756 2,230 8,180 — 3,169 11,349 
$119 $1,474 $756 $2,349 $8,180 $668 $3,169 $12,017 
Nine Months Ended September 30,
20262025
Interest Rate Reduction Term ExtensionCombination - Interest Rate Reduction and Term Extension Combination - Term Extension and Other than Insignificant Payment Delays TotalTerm ExtensionOther than Insignificant Payment DelaysCombination - Interest Rate Reduction and Term ExtensionTotal
C&I$119 $— $— 3,999 $4,118 $— $1,563 $— $1,563 
Government insured residential $— 5,982 5,475 — 11,457 12,920 — 6,617 19,537 
$119 $5,982 $5,475 3,999 $15,575 $12,920 $1,563 $6,617 $21,100