v3.26.3
Loans and Lease Finance Receivables and Allowance for Credit Losses (Tables)
 9 Months Ended
Sep. 30, 2026
Receivables [Abstract]  
Summary of Components of Loans and Lease Finance Receivables, Excluding PCI Loans

The following table provides a summary of total loans and lease finance receivables by type.

 

(Dollars in thousands)

September 30, 2026

 

 

December 31, 2025

 

Commercial real estate

$

9,032,741

 

 

$

6,574,395

 

Construction

 

229,046

 

 

 

37,812

 

SBA

 

470,293

 

 

 

282,401

 

Commercial and industrial

 

1,439,834

 

 

 

973,631

 

Dairy & livestock and agribusiness

 

341,801

 

 

 

431,577

 

Municipal lease finance receivables

 

53,800

 

 

 

59,542

 

SFR mortgage

 

338,394

 

 

 

281,766

 

Consumer and other loans

 

216,106

 

 

 

58,069

 

Total loans, at amortized cost

 

12,122,015

 

 

 

8,699,193

 

Less: Allowance for credit losses

 

(125,641

)

 

 

(77,161

)

 Total loans and lease finance receivables, net

$

11,996,374

 

 

$

8,622,032

 

 
Summary of Loans by Type and Origination Year, According to our Internal Risk Ratings

The following tables summarize loans by type and origination year, according to our internal risk ratings as of the dates presented.

 

 

Origination Year

 

 

Revolving loans amortized

 

 

Revolving loans converted to

 

 

 

 

(Dollars in thousands)

2026

 

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

Prior

 

 

cost basis

 

 

term loans

 

 

Total

 

September 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate
   loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

897,801

 

 

$

872,558

 

 

$

408,291

 

 

$

583,482

 

 

$

1,328,932

 

 

$

4,227,787

 

 

$

299,943

 

 

$

37,665

 

 

$

8,656,459

 

Special Mention

 

1,883

 

 

 

3,377

 

 

 

18,272

 

 

 

24,881

 

 

 

59,957

 

 

 

190,721

 

 

 

13,669

 

 

 

7,452

 

 

 

320,212

 

Substandard

 

1,694

 

 

 

393

 

 

 

8,761

 

 

 

6,524

 

 

 

22,626

 

 

 

14,530

 

 

 

1,293

 

 

 

249

 

 

 

56,070

 

Total Commercial real
   estate loans:

$

901,378

 

 

$

876,328

 

 

$

435,324

 

 

$

614,887

 

 

$

1,411,515

 

 

$

4,433,038

 

 

$

314,905

 

 

$

45,366

 

 

$

9,032,741

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

49,970

 

 

$

123,804

 

 

$

43,080

 

 

$

100

 

 

$

11,387

 

 

$

—

 

 

$

—

 

 

$

20

 

 

$

228,361

 

Substandard

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

685

 

 

 

—

 

 

 

—

 

 

 

685

 

Total Construction
   loans:

$

49,970

 

 

$

123,804

 

 

$

43,080

 

 

$

100

 

 

$

11,387

 

 

$

685

 

 

$

—

 

 

$

20

 

 

$

229,046

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBA loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

77,870

 

 

$

75,121

 

 

$

42,128

 

 

$

19,886

 

 

$

57,241

 

 

$

174,937

 

 

$

2,504

 

 

$

752

 

 

$

450,439

 

Special Mention

 

—

 

 

 

—

 

 

 

—

 

 

 

611

 

 

 

—

 

 

 

8,623

 

 

 

—

 

 

 

—

 

 

 

9,234

 

Substandard

 

—

 

 

 

—

 

 

 

754

 

 

 

296

 

 

 

1,503

 

 

 

7,954

 

 

 

113

 

 

 

—

 

 

 

10,620

 

Total SBA loans:

$

77,870

 

 

$

75,121

 

 

$

42,882

 

 

$

20,793

 

 

$

58,744

 

 

$

191,514

 

 

$

2,617

 

 

$

752

 

 

$

470,293

 

Current YTD Period:
  Gross charge-offs

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

26

 

 

$

—

 

 

$

—

 

 

$

26

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and
   industrial loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

151,475

 

 

$

127,667

 

 

$

77,881

 

 

$

69,600

 

 

$

59,804

 

 

$

182,019

 

 

$

680,603

 

 

$

15,750

 

 

$

1,364,799

 

Special Mention

 

1,601

 

 

 

361

 

 

 

704

 

 

 

1,740

 

 

 

5,185

 

 

 

2,723

 

 

 

19,683

 

 

 

6,885

 

 

 

38,882

 

Substandard

 

—

 

 

 

2,836

 

 

 

1,748

 

 

 

1,608

 

 

 

1,037

 

 

 

8,090

 

 

 

10,843

 

 

 

9,991

 

 

 

36,153

 

Total Commercial and
   industrial loans:

$

153,076

 

 

$

130,864

 

 

$

80,333

 

 

$

72,948

 

 

$

66,026

 

 

$

192,832

 

 

$

711,129

 

 

$

32,626

 

 

$

1,439,834

 

Current YTD Period:
  Gross charge-offs

$

—

 

 

$

—

 

 

$

112

 

 

$

115

 

 

$

21

 

 

$

10

 

 

$

—

 

 

$

—

 

 

$

258

 

 

 

 

Origination Year

 

 

Revolving loans amortized

 

 

Revolving loans converted to

 

 

 

 

(Dollars in thousands)

2026

 

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

Prior

 

 

cost basis

 

 

term loans

 

 

Total

 

September 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dairy & livestock and
   agribusiness loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

127

 

 

$

54

 

 

$

185

 

 

$

—

 

 

$

—

 

 

$

525

 

 

$

306,791

 

 

$

—

 

 

$

307,682

 

Special Mention

 

—

 

 

 

—

 

 

 

311

 

 

 

—

 

 

 

—

 

 

 

56

 

 

 

26,852

 

 

 

—

 

 

 

27,219

 

Substandard

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

6,900

 

 

 

—

 

 

 

6,900

 

Total Dairy & livestock
   and agribusiness
   loans:

$

127

 

 

$

54

 

 

$

496

 

 

$

—

 

 

$

—

 

 

$

581

 

 

$

340,543

 

 

$

—

 

 

$

341,801

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipal lease finance
   receivables loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

65

 

 

$

514

 

 

$

2,547

 

 

$

—

 

 

$

4,108

 

 

$

46,566

 

 

$

—

 

 

$

—

 

 

$

53,800

 

Total Municipal lease
   finance receivables
   loans:

$

65

 

 

$

514

 

 

$

2,547

 

 

$

—

 

 

$

4,108

 

 

$

46,566

 

 

$

—

 

 

$

—

 

 

$

53,800

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SFR mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

34,324

 

 

$

34,988

 

 

$

17,390

 

 

$

17,345

 

 

$

59,362

 

 

$

168,740

 

 

$

—

 

 

$

152

 

 

$

332,301

 

Special Mention

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,076

 

 

 

—

 

 

 

—

 

 

 

5,076

 

Substandard

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,017

 

 

 

—

 

 

 

—

 

 

 

1,017

 

Total SFR mortgage
   loans:

$

34,324

 

 

$

34,988

 

 

$

17,390

 

 

$

17,345

 

 

$

59,362

 

 

$

174,833

 

 

$

—

 

 

$

152

 

 

$

338,394

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer and other
   loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

6,434

 

 

$

6,604

 

 

$

4,259

 

 

$

840

 

 

$

316

 

 

$

4,789

 

 

$

184,264

 

 

$

4,261

 

 

$

211,767

 

Special Mention

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,807

 

 

 

65

 

 

 

1,872

 

Substandard

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

259

 

 

 

1,910

 

 

 

298

 

 

 

2,467

 

Total Consumer and
   other loans:

$

6,434

 

 

$

6,604

 

 

$

4,259

 

 

$

840

 

 

$

316

 

 

$

5,048

 

 

$

187,981

 

 

$

4,624

 

 

$

216,106

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Loans, at amortized cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

1,218,066

 

 

$

1,241,310

 

 

$

595,761

 

 

$

691,253

 

 

$

1,521,150

 

 

$

4,805,363

 

 

$

1,474,105

 

 

$

58,600

 

 

$

11,605,608

 

Special Mention

 

3,484

 

 

 

3,738

 

 

 

19,287

 

 

 

27,232

 

 

 

65,142

 

 

 

207,199

 

 

 

62,011

 

 

 

14,402

 

 

 

402,495

 

Substandard

 

1,694

 

 

 

3,229

 

 

 

11,263

 

 

 

8,428

 

 

 

25,166

 

 

 

32,535

 

 

 

21,059

 

 

 

10,538

 

 

 

113,912

 

Total Loans at amortized cost:

$

1,223,244

 

 

$

1,248,277

 

 

$

626,311

 

 

$

726,913

 

 

$

1,611,458

 

 

$

5,045,097

 

 

$

1,557,175

 

 

$

83,540

 

 

$

12,122,015

 

Current YTD Period:
  Total gross charge-offs

$

—

 

 

$

—

 

 

$

112

 

 

$

115

 

 

$

21

 

 

$

36

 

 

$

—

 

 

$

—

 

 

$

284

 

 

 

 

Origination Year

 

 

Revolving loans amortized

 

 

Revolving loans converted to

 

 

 

 

(Dollars in thousands)

2025

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

Prior

 

 

cost basis

 

 

term loans

 

 

Total

 

December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate
   loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

595,637

 

 

$

304,734

 

 

$

378,718

 

 

$

1,143,941

 

 

$

962,666

 

 

$

2,631,270

 

 

$

251,597

 

 

$

34,757

 

 

$

6,303,320

 

Special Mention

 

3,604

 

 

 

12,317

 

 

 

8,364

 

 

 

45,946

 

 

 

34,806

 

 

 

121,473

 

 

 

8,548

 

 

 

8,751

 

 

 

243,809

 

Substandard

 

1,456

 

 

 

—

 

 

 

3,327

 

 

 

7,266

 

 

 

4,578

 

 

 

10,108

 

 

 

531

 

 

 

—

 

 

 

27,266

 

Total Commercial real
   estate loans:

$

600,697

 

 

$

317,051

 

 

$

390,409

 

 

$

1,197,153

 

 

$

1,002,050

 

 

$

2,762,851

 

 

$

260,676

 

 

$

43,508

 

 

$

6,574,395

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

15,742

 

 

$

11,829

 

 

$

—

 

 

$

10,241

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

37,812

 

Total Construction
   loans:

$

15,742

 

 

$

11,829

 

 

$

—

 

 

$

10,241

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

37,812

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBA loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

48,707

 

 

$

25,775

 

 

$

12,077

 

 

$

44,550

 

 

$

45,057

 

 

$

100,201

 

 

$

—

 

 

$

—

 

 

$

276,367

 

Special Mention

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

391

 

 

 

—

 

 

 

—

 

 

 

391

 

Substandard

 

—

 

 

 

—

 

 

 

—

 

 

 

1,537

 

 

 

13

 

 

 

4,093

 

 

 

—

 

 

 

—

 

 

 

5,643

 

Total SBA loans:

$

48,707

 

 

$

25,775

 

 

$

12,077

 

 

$

46,087

 

 

$

45,070

 

 

$

104,685

 

 

$

—

 

 

$

—

 

 

$

282,401

 

Current YTD Period:
  Gross charge-offs

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

118

 

 

$

—

 

 

$

—

 

 

$

118

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and
   industrial loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

133,937

 

 

$

73,869

 

 

$

85,504

 

 

$

73,264

 

 

$

50,997

 

 

$

143,690

 

 

$

358,873

 

 

$

9,880

 

 

$

930,014

 

Special Mention

 

83

 

 

 

62

 

 

 

1,635

 

 

 

4,497

 

 

 

951

 

 

 

359

 

 

 

20,756

 

 

 

2,931

 

 

 

31,274

 

Substandard

 

2,900

 

 

 

—

 

 

 

1,399

 

 

 

641

 

 

 

138

 

 

 

2,561

 

 

 

990

 

 

 

3,714

 

 

 

12,343

 

Total Commercial and
   industrial loans:

$

136,920

 

 

$

73,931

 

 

$

88,538

 

 

$

78,402

 

 

$

52,086

 

 

$

146,610

 

 

$

380,619

 

 

$

16,525

 

 

$

973,631

 

Current YTD Period:
  Gross charge-offs

$

—

 

 

$

—

 

 

$

392

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

127

 

 

$

519

 

 

 

 

Origination Year

 

 

Revolving loans amortized

 

 

Revolving loans converted to

 

 

 

 

(Dollars in thousands)

2025

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

Prior

 

 

cost basis

 

 

term loans

 

 

Total

 

December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dairy & livestock and
   agribusiness loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

3

 

 

$

211

 

 

$

—

 

 

$

—

 

 

$

507

 

 

$

610

 

 

$

411,447

 

 

$

56

 

 

$

412,834

 

Special Mention

 

—

 

 

 

376

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

82

 

 

 

11,435

 

 

 

—

 

 

 

11,893

 

Substandard

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

6,850

 

 

 

—

 

 

 

6,850

 

Total Dairy & livestock
   and agribusiness
   loans:

$

3

 

 

$

587

 

 

$

—

 

 

$

—

 

 

$

507

 

 

$

692

 

 

$

429,732

 

 

$

56

 

 

$

431,577

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipal lease finance
   receivables loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

570

 

 

$

2,699

 

 

$

—

 

 

$

4,479

 

 

$

23,701

 

 

$

28,093

 

 

$

—

 

 

$

—

 

 

$

59,542

 

Total Municipal lease
   finance receivables
   loans:

$

570

 

 

$

2,699

 

 

$

—

 

 

$

4,479

 

 

$

23,701

 

 

$

28,093

 

 

$

—

 

 

$

—

 

 

$

59,542

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SFR mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

36,561

 

 

$

16,445

 

 

$

16,766

 

 

$

57,988

 

 

$

38,394

 

 

$

114,687

 

 

$

—

 

 

$

—

 

 

$

280,841

 

Special Mention

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

370

 

 

 

—

 

 

 

252

 

 

 

622

 

Substandard

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

303

 

 

 

—

 

 

 

—

 

 

 

303

 

Total SFR mortgage
   loans:

$

36,561

 

 

$

16,445

 

 

$

16,766

 

 

$

57,988

 

 

$

38,394

 

 

$

115,360

 

 

$

—

 

 

$

252

 

 

$

281,766

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer and other
   loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

3,037

 

 

$

4,497

 

 

$

1,792

 

 

$

504

 

 

$

659

 

 

$

426

 

 

$

42,860

 

 

$

3,588

 

 

$

57,363

 

Special Mention

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

19

 

 

 

—

 

 

 

391

 

 

 

—

 

 

 

410

 

Substandard

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

296

 

 

 

296

 

Total Consumer and
   other loans:

$

3,037

 

 

$

4,497

 

 

$

1,792

 

 

$

504

 

 

$

678

 

 

$

426

 

 

$

43,251

 

 

$

3,884

 

 

$

58,069

 

Current YTD Period:
  Gross charge-offs

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

5

 

 

$

—

 

 

$

5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Loans, at amortized cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

834,194

 

 

$

440,059

 

 

$

494,857

 

 

$

1,334,967

 

 

$

1,121,981

 

 

$

3,018,977

 

 

$

1,064,777

 

 

$

48,281

 

 

$

8,358,093

 

Special Mention

 

3,687

 

 

 

12,755

 

 

 

9,999

 

 

 

50,443

 

 

 

35,776

 

 

 

122,675

 

 

 

41,130

 

 

 

11,934

 

 

 

288,399

 

Substandard

 

4,356

 

 

 

—

 

 

 

4,726

 

 

 

9,444

 

 

 

4,729

 

 

 

17,065

 

 

 

8,371

 

 

 

4,010

 

 

 

52,701

 

Total Loans at amortized cost:

$

842,237

 

 

$

452,814

 

 

$

509,582

 

 

$

1,394,854

 

 

$

1,162,486

 

 

$

3,158,717

 

 

$

1,114,278

 

 

$

64,225

 

 

$

8,699,193

 

Current YTD Period:
  Gross charge-offs

$

—

 

 

$

—

 

 

$

392

 

 

$

—

 

 

$

—

 

 

$

118

 

 

$

5

 

 

$

127

 

 

$

642

 
Summary of Balance and Activity Related to Allowance for Loan Losses for Held-for-Investment Loans by Type

The following tables present the balance and activity related to the allowance for credit losses for held-for-investment loans by type for the periods presented.

 

 

Three Months Ended September 30, 2026

 

(Dollars in thousands)

Ending Balance June 30, 2026

 

 

Charge-offs

 

 

Recoveries

 

 

(Recapture of) provision for credit losses

 

 

Ending Balance September 30, 2026

 

Commercial real estate

$

76,065

 

 

$

—

 

 

$

—

 

 

$

(655

)

 

$

75,410

 

Construction

 

3,056

 

 

 

—

 

 

 

—

 

 

 

(519

)

 

 

2,537

 

SBA

 

4,568

 

 

 

—

 

 

 

—

 

 

 

(13

)

 

 

4,555

 

Commercial and industrial

 

36,588

 

 

 

(20

)

 

 

—

 

 

 

(399

)

 

 

36,169

 

Dairy & livestock and agribusiness

 

3,082

 

 

 

—

 

 

 

—

 

 

 

556

 

 

 

3,638

 

Municipal lease finance
   receivables

 

222

 

 

 

—

 

 

 

—

 

 

 

(12

)

 

 

210

 

SFR mortgage

 

515

 

 

 

—

 

 

 

—

 

 

 

11

 

 

 

526

 

Consumer and other loans

 

2,565

 

 

 

—

 

 

 

—

 

 

 

31

 

 

 

2,596

 

Total allowance for credit losses

$

126,661

 

 

$

(20

)

 

$

—

 

 

$

(1,000

)

 

$

125,641

 

 

 

Three Months Ended September 30, 2025

 

(Dollars in thousands)

Ending Balance June 30, 2025

 

 

Charge-offs

 

 

Recoveries

 

 

Provision for (recapture of) credit losses

 

 

Ending Balance September 30, 2025

 

Commercial real estate

$

64,542

 

 

$

—

 

 

$

—

 

 

$

852

 

 

$

65,394

 

Construction

 

240

 

 

 

—

 

 

 

159

 

 

 

123

 

 

 

522

 

SBA

 

3,066

 

 

 

(67

)

 

 

6

 

 

 

(425

)

 

 

2,580

 

Commercial and industrial

 

6,357

 

 

 

—

 

 

 

235

 

 

 

64

 

 

 

6,656

 

Dairy & livestock and agribusiness

 

2,554

 

 

 

—

 

 

 

—

 

 

 

237

 

 

 

2,791

 

Municipal lease finance
   receivables

 

220

 

 

 

—

 

 

 

—

 

 

 

4

 

 

 

224

 

SFR mortgage

 

477

 

 

 

—

 

 

 

—

 

 

 

16

 

 

 

493

 

Consumer and other loans

 

547

 

 

 

—

 

 

 

—

 

 

 

129

 

 

 

676

 

Total allowance for credit losses

$

78,003

 

 

$

(67

)

 

$

400

 

 

$

1,000

 

 

$

79,336

 

 

 

 

Nine Months Ended September 30, 2026

 

(Dollars in thousands)

Ending Balance December 31, 2025

 

 

Charge-offs

 

 

Recoveries

 

 

Initial ACL on PCD & PSL Loans at Acquisition

 

 

Provision for (recapture of) Credit Losses

 

 

Ending Balance September 30, 2026

 

Commercial real estate

$

61,661

 

 

$

—

 

 

$

—

 

 

$

17,401

 

 

$

(3,652

)

 

$

75,410

 

Construction

 

593

 

 

 

—

 

 

 

—

 

 

 

1,593

 

 

 

351

 

 

 

2,537

 

SBA

 

2,720

 

 

 

(26

)

 

 

8

 

 

 

1,830

 

 

 

23

 

 

 

4,555

 

Commercial and industrial

 

8,438

 

 

 

(258

)

 

 

128

 

 

 

24,065

 

 

 

3,796

 

 

 

36,169

 

Dairy & livestock and agribusiness

 

2,486

 

 

 

—

 

 

 

—

 

 

 

1

 

 

 

1,151

 

 

 

3,638

 

Municipal lease finance
   receivables

 

251

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(41

)

 

 

210

 

SFR mortgage

 

442

 

 

 

—

 

 

 

—

 

 

 

35

 

 

 

49

 

 

 

526

 

Consumer and other loans

 

570

 

 

 

—

 

 

 

—

 

 

 

1,703

 

 

 

323

 

 

 

2,596

 

Total allowance for credit losses

$

77,161

 

 

$

(284

)

 

$

136

 

 

$

46,628

 

 

$

2,000

 

 

$

125,641

 

 

 

 

Nine Months Ended September 30, 2025

 

(Dollars in thousands)

Ending Balance December 31, 2024

 

 

Charge-offs

 

 

Recoveries

 

 

(Recapture of) Provision for Credit Losses

 

 

Ending Balance September 30, 2025

 

Commercial real estate

$

66,237

 

 

$

—

 

 

$

—

 

 

$

(843

)

 

$

65,394

 

Construction

 

312

 

 

 

—

 

 

 

171

 

 

 

39

 

 

 

522

 

SBA

 

2,629

 

 

 

(118

)

 

 

47

 

 

 

22

 

 

 

2,580

 

Commercial and industrial

 

6,093

 

 

 

(413

)

 

 

532

 

 

 

444

 

 

 

6,656

 

Dairy & livestock and agribusiness

 

3,610

 

 

 

—

 

 

 

—

 

 

 

(819

)

 

 

2,791

 

Municipal lease finance
   receivables

 

205

 

 

 

—

 

 

 

—

 

 

 

19

 

 

 

224

 

SFR mortgage

 

424

 

 

 

—

 

 

 

—

 

 

 

69

 

 

 

493

 

Consumer and other loans

 

612

 

 

 

(5

)

 

 

—

 

 

 

69

 

 

 

676

 

Total allowance for credit losses

$

80,122

 

 

$

(536

)

 

$

750

 

 

$

(1,000

)

 

$

79,336

 

 

 

 
Summary of Recorded Investment in, and Aging of, Past Due and Nonaccrual Loans, Excluding PCI Loans by Class of Loans

The following table presents the recorded investment in, and the aging of, past due loans (including nonaccrual loans), by type of loans as of the dates presented.

 

 

September 30, 2026

 

 (Dollars in thousands)

30-59 Days Past Due

 

 

60-89 Days Past Due

 

 

Greater than 89 Days
Past Due

 

 

Total Past Due

 

 

Current

 

 

Total Loans and Financing Receivables

 

Commercial real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

$

2,532

 

 

$

2,049

 

 

$

4,050

 

 

$

8,631

 

 

$

2,837,372

 

 

$

2,846,003

 

Non-owner occupied

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

6,186,738

 

 

 

6,186,738

 

Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Speculative (1)

 

—

 

 

 

—

 

 

 

685

 

 

 

685

 

 

 

121,422

 

 

 

122,107

 

Non-speculative

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

106,939

 

 

 

106,939

 

 SBA

 

—

 

 

 

11

 

 

 

2,652

 

 

 

2,663

 

 

 

467,630

 

 

 

470,293

 

 Commercial and industrial

 

530

 

 

 

32

 

 

 

6,668

 

 

 

7,230

 

 

 

1,432,604

 

 

 

1,439,834

 

 Dairy & livestock and agribusiness

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

341,801

 

 

 

341,801

 

 Municipal lease finance receivables

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

53,800

 

 

 

53,800

 

 SFR mortgage

 

—

 

 

 

596

 

 

 

—

 

 

 

596

 

 

 

337,798

 

 

 

338,394

 

 Consumer and other loans

 

—

 

 

 

—

 

 

 

125

 

 

 

125

 

 

 

215,981

 

 

 

216,106

 

Total loans at amortized cost

$

3,062

 

 

$

2,688

 

 

$

14,180

 

 

$

19,930

 

 

$

12,102,085

 

 

$

12,122,015

 

 

 

 

December 31, 2025

 

 (Dollars in thousands)

30-59 Days Past Due

 

 

60-89 Days Past Due

 

 

Greater than 89 Days
Past Due

 

 

Total Past Due

 

 

Current

 

 

Total Loans and Financing Receivables

 

Commercial real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

$

2,887

 

 

$

—

 

 

$

43

 

 

$

2,930

 

 

$

2,330,311

 

 

$

2,333,241

 

Non-owner occupied

 

—

 

 

 

—

 

 

 

4,143

 

 

 

4,143

 

 

 

4,237,011

 

 

 

4,241,154

 

Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Speculative (1)

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

12,151

 

 

 

12,151

 

Non-speculative

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

25,661

 

 

 

25,661

 

 SBA

 

30

 

 

 

—

 

 

 

21

 

 

 

51

 

 

 

282,350

 

 

 

282,401

 

 Commercial and industrial

 

261

 

 

 

—

 

 

 

478

 

 

 

739

 

 

 

972,892

 

 

 

973,631

 

 Dairy & livestock and agribusiness

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

431,577

 

 

 

431,577

 

 Municipal lease finance receivables

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

59,542

 

 

 

59,542

 

 SFR mortgage

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

281,766

 

 

 

281,766

 

 Consumer and other loans

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

58,069

 

 

 

58,069

 

Total loans at amortized cost

$

3,178

 

 

$

—

 

 

$

4,685

 

 

$

7,863

 

 

$

8,691,330

 

 

$

8,699,193

 

 

(1)
Speculative construction loans are generally for properties where there is no identified buyer or renter.

 

It is the Company's policy to discontinue accruing interest when principal or interest payments are 90 days or more past due, unless the loan is both well secured and in the process of collection, or when full collection of principal and interest is not expected. The following table presents nonaccrual loans, including loans with no related allowance for credit losses, by loan type as of September 30, 2026 and December 31, 2025.

 

 

September 30, 2026

 

 (Dollars in thousands)

Nonaccrual with No Allowance for Credit Losses

 

 

Total
 Nonaccrual (1) (3)

 

 

Loans Past Due Over 89 Days Still Accruing

 

Commercial real estate

 

 

 

 

 

 

 

 

Owner occupied

$

4,299

 

 

$

4,299

 

 

$

—

 

Construction

 

 

 

 

 

 

 

 

Speculative (2)

 

685

 

 

 

685

 

 

 

 

 SBA

 

1,975

 

 

 

2,652

 

 

 

—

 

 Commercial and industrial

 

3,291

 

 

 

10,514

 

 

 

—

 

 Consumer and other loans

 

575

 

 

 

575

 

 

 

 

Total loans at amortized cost

$

10,825

 

 

$

18,725

 

 

$

—

 

 

(1)
As of September 30, 2026, $4.5 million of nonaccruing loans were current, $30,000 were 30-59 days past due, $32,000 were 60-89 days past due, and $14.2 million were 90+ days past due.
(2)
Speculative construction loans are generally for properties where there is no identified buyer or renter.
(3)
Excludes $35,000 of guaranteed portion of nonaccrual SBA loans that are in process of collection.

 

 

December 31, 2025

 

 (Dollars in thousands)

Nonaccrual with No Allowance for Credit Losses

 

 

Total
 Nonaccrual (1) (2)

 

 

Loans Past Due Over 89 Days Still Accruing

 

Commercial real estate

 

 

 

 

 

 

 

 

Owner occupied

$

43

 

 

$

43

 

 

$

—

 

Non-owner occupied

 

4,143

 

 

 

4,143

 

 

 

—

 

 SBA

 

21

 

 

 

21

 

 

 

—

 

 Commercial and industrial

 

478

 

 

 

478

 

 

 

—

 

Total loans at amortized cost

$

4,685

 

 

$

4,685

 

 

$

—

 

 

(1)
As of December 31, 2025, $4.7 million were 90+ days past due.
(2)
Excludes $3,000 of guaranteed portion of nonaccrual SBA loans that are in process of collection.
Summary of Pledged Assets not Separately Reported on Statement of Financial Position The following table presents the recorded investment in collateral-dependent loans by type of loans as of the dates presented.

 

 

September 30, 2026

 

 

Number of Loans

 

(Dollars in thousands)

Real Estate

 

 

Business Assets

 

 

Other

 

 

Dependent on
Collateral

 

Commercial real estate

$

4,399

 

 

$

—

 

 

$

—

 

 

 

4

 

Construction

 

685

 

 

 

—

 

 

 

—

 

 

 

1

 

SBA

 

2,652

 

 

 

985

 

 

 

—

 

 

 

9

 

Commercial and industrial

 

—

 

 

 

17,213

 

 

 

10,358

 

 

 

33

 

Consumer and other loans

 

573

 

 

 

—

 

 

 

—

 

 

 

2

 

Total collateral-dependent loans

$

8,309

 

 

$

18,198

 

 

$

10,358

 

 

 

49

 

 

 

 

December 31, 2025

 

 

Number of Loans

 

(Dollars in thousands)

Real Estate

 

 

Business Assets

 

 

Other

 

 

Dependent on
Collateral

 

Commercial real estate

$

4,143

 

 

$

—

 

 

$

—

 

 

 

1

 

SBA

 

21

 

 

 

—

 

 

 

—

 

 

 

1

 

Commercial and industrial

 

—

 

 

 

477

 

 

 

—

 

 

 

3

 

Total collateral-dependent loans

$

4,164

 

 

$

477

 

 

$

—

 

 

 

5

 
Summary of Amortized Cost of Loans Activity

The tables below present the amortized cost of loans to borrowers experiencing financial difficulty that were modified during the three and nine months ended September 30, 2026 by loan class and modification type.

 

(Dollars in thousands)

 

Amortized Cost Basis

 

 

% of Total Class of Financing Receivables

 

 

Financial Effect

Three months ended September 30, 2026

 

 

 

 

 

 

 

 

Term Extension

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

4,963

 

 

 

0.04

%

 

Added a weighted-average 0.5 year to the life of loans, which reduced monthly payment amounts for the borrowers.

   Total Modified

 

$

4,963

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Amortized Cost Basis

 

 

% of Total Class of Financing Receivables

 

 

Financial Effect

Nine months ended September 30, 2026

 

 

 

 

 

 

 

 

Term Extension

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

13,908

 

 

 

0.11

%

 

Added a weighted-average 1 year to the life of loans, which reduced monthly payment amounts for the borrowers.

Dairy & livestock and agribusiness

 

 

4,835

 

 

 

0.04

%

 

Added a weighted-average 1 year to the life of loans, which reduced monthly payment amounts for the borrowers.

Commercial real estate

 

 

1,694

 

 

 

0.01

%

 

Added a weighted-average 2 years to the life of loans, which reduced monthly payment amounts for the borrowers.

   Total Modified

 

$

20,437

 

 

 

 

 

 

 

 

The tables below present the amortized cost of loans to borrowers experiencing financial difficulty that were modified as of September 30, 2025 by loan class and modification type.

 

(Dollars in thousands)

 

Amortized Cost Basis

 

 

% of Total Class of Financing Receivables

 

 

Financial Effect

September 30, 2025

 

 

 

 

 

 

 

 

Term Extension

 

 

 

 

 

 

 

 

Commercial real estate

 

$

7,754

 

 

 

0.09

%

 

Added a weighted-average 1.8 years to the life of loans, which reduced monthly payment amounts for the borrowers.

Commercial and industrial

 

 

1,149

 

 

 

0.01

%

 

Added a weighted-average 1.4 years to the life of loans, which reduced monthly payment amounts for the borrowers.

Dairy & livestock and agribusiness

 

 

395

 

 

 

0.00

%

 

Added a weighted-average 1.6 years to the life of loans, which reduced monthly payment amounts for the borrowers.

   Total

 

$

9,298

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term Extension and Interest Rate Reduction

 

 

 

 

 

 

 

 

Commercial real estate

 

$

675

 

 

 

0.01

%

 

Added a weighted-average 7.6 years to the life of loans, which reduced monthly payment amounts for the borrowers; reduced weighted-average contractual interest rate from 10.00% to 7.25%.

Commercial and industrial

 

 

783

 

 

 

0.01

%

 

Added a weighted-average 1.6 years to the life of loans, which reduced monthly payment amounts for the borrowers; reduced weighted-average contractual interest rate from 8.50% to 7.75%.

   Total

 

 

1,458

 

 

 

 

 

 

   Total Modified

 

$

10,756

 

 

 

 

 

 
Summary of Recorded Investments or Past Due Loans At Amortized Cost

The following table depicts the payment status of the loans that were modified in the past 12 months as of the dates indicated.

 

 

 

Payment Status (amortized cost basis)

 

(Dollars in thousands)

 

Current

 

 

30-89 Days
Past Due

 

 

90+ Days
Past Due

 

September 30, 2026

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

20,306

 

 

$

—

 

 

$

—

 

Dairy & livestock and agribusiness

 

 

4,835

 

 

 

—

 

 

 

—

 

Commercial real estate

 

 

1,694

 

 

 

—

 

 

 

—

 

   Total

 

$

26,835

 

 

$

—

 

 

$

—

 

 

 

(Dollars in thousands)

 

Current

 

 

30-89 Days
Past Due

 

 

90+ Days
Past Due

 

September 30, 2025

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

8,386

 

 

$

43

 

 

$

—

 

Commercial and industrial

 

 

1,932

 

 

 

—

 

 

 

—

 

Dairy & livestock and agribusiness

 

 

395

 

 

 

—

 

 

 

—

 

   Total

 

$

10,713

 

 

$

43

 

 

$

—