v3.26.3
Portfolio Loans Receivable and Allowance for Credit Losses (Tables)
 9 Months Ended
Sep. 30, 2026
Receivables [Abstract]  
Schedule of Loans Receivable
The following is a summary of the major categories of total loans outstanding:
September 30, 2026December 31, 2025
(in thousands)AmountPercentAmountPercent
Real estate:
Residential$784,220 25 %$765,808 26 %
Commercial1,024,754 33 997,081 34 
Construction380,688 12 359,566 12 
Commercial and Industrial774,297 25 698,289 23 
Credit card, net of reserve(1)
149,184 5 142,397 5 
Other consumer5,539 — 1,930 — 
Portfolio loans receivable, gross3,118,682 100 %2,965,071 100 %
Deferred origination fees, net(4,418)(5,614)
Allowance for credit losses(55,493)(54,660)
Portfolio loans receivable, net$3,058,771 $2,904,797 
_______________
(1)    Credit card loans are presented net of reserve for interest and fees.
Schedule of Allowance for Credit Losses on Loans Receivables
The following tables set forth the changes in the ACL by loan segment class for the three and nine months ended September 30, 2026 and September 30, 2025.
(in thousands)Beginning
Balance		Provision (Release of Provision) for
Credit Losses		Charge-OffsRecoveriesEnding
Balance
Three Months Ended September 30, 2026
Real estate:
Residential$7,727 $(296)$(174)$2 $7,259 
Commercial14,387 (508)— — 13,879 
Construction4,930 501 — — 5,431 
Commercial and Industrial18,474 1,605 (471)— 19,608 
Credit card8,904 3,587 (3,198)— 9,293 
Other consumer9 14 — — 23 
Total$54,431 $4,903 $(3,843)$2 $55,493 
Nine Months Ended September 30, 2026
Real estate:
Residential$7,444 $(7)$(180)$2 $7,259 
Commercial14,917 (1,038)— — 13,879 
Construction4,250 1,564 (383)— 5,431 
Commercial and Industrial19,818 684 (1,639)745 19,608 
Credit card8,226 10,281 (9,220)6 9,293 
Other consumer5 18 — — 23 
Total$54,660 $11,502 $(11,422)$753 $55,493 
(in thousands)Beginning
Balance		Measurement Period Adjustment for Acquired PCD LoansProvision (Release of Provision) for
Credit Losses		Charge-OffsRecoveriesEnding
Balance
Three Months Ended September 30, 2025
Real estate:
Residential$6,772 $— $249 $— $7 $7,028 
Commercial14,262 — 603 — — 14,865 
Construction3,410 — 321 — — 3,731 
Commercial and Industrial16,249 3,424 680 (336)— 20,017 
Credit card6,749 — 2,797 (2,156)9 7,399 
Other consumer5 — — — — 5 
Total$47,447 $3,424 $4,650 $(2,492)$16 $53,045 
Nine Months Ended September 30, 2025
Real estate:
Residential$6,945 $— $76 $(1)$8 $7,028 
Commercial16,041 — 519 (1,695)— 14,865 
Construction2,973 — 1,022 (264)— 3,731 
Commercial and Industrial16,377 3,424 1,764 (1,597)49 20,017 
Credit card6,301 — 7,606 (6,524)16 7,399 
Other consumer15 — (10)— — 5 
Total$48,652 $3,424 $10,977 $(10,081)$73 $53,045 
Schedule of Past Due Loans Receivables
Past due loans, segregated by age and class of loans, as of September 30, 2026 and December 31, 2025 were as follows:
Portfolio Loans Past Due
Loans
30-59 Days
Past Due		Loans
60-89 Days
Past Due		Loans
90 or More
Days
Past Due		Total Past
Due Loans		Current
Loans		Total
Portfolio
Loans		Accruing
Loans 90 or
More Days
Past Due		Nonaccrual
Loans
(in thousands)
September 30, 2026
Real estate:
Residential$9,022 $2,603 $4,791 $16,416 $767,804 $784,220 $— $4,790 
Commercial8,839 552 12,535 21,926 1,002,828 1,024,754 297 12,505 
Construction— 2,234 14,403 16,637 364,051 380,688 360 14,044 
Commercial and Industrial5,580 1,753 20,843 28,176 746,121 774,297 904 25,017 
Credit card8,077 7,198 3,233 18,508 130,676 149,184 3,233 — 
Other consumer— — — — 5,539 5,539 — — 
Total$31,518 $14,340 $55,805 $101,663 $3,017,019 $3,118,682 $4,794 $56,356 
Loans
30-59 Days
Past Due		Loans
60-89 Days
Past Due		Loans
90 or More
Days
Past Due		Total Past
Due Loans		Current
Loans		Total
Portfolio
Loans		Accruing
Loans 90 or
More Days
Past Due		Nonaccrual
Loans
December 31, 2025
Real estate:
Residential$3,886 $573 $8,480 $12,939 $752,869 $765,808 $740 $7,741 
Commercial8,148 1,166 15,660 24,974 972,107 997,081 862 15,624 
Construction2,591 — 4,717 7,308 352,258 359,566 — 4,717 
Commercial and Industrial3,501 5,134 22,496 31,131 667,158 698,289 279 26,339 
Credit card7,555 6,887 2,691 17,133 125,264 142,397 2,691 — 
Other consumer— — — — 1,930 1,930 — — 
Total$25,681 $13,760 $54,044 $93,485 $2,871,586 $2,965,071 $4,572 $54,421 
Schedule of Nonaccrual Loans
The following presents the nonaccrual loans as of September 30, 2026 and December 31, 2025:
September 30, 2026
Nonaccrual with No Allowance for Credit LossNonaccrual with an Allowance for Credit LossTotal Nonaccrual Loans
(in thousands)
Real estate:
Residential$4,417 $373 $4,790 
Commercial8,171 4,334 12,505 
Construction$8,730 $5,314 $14,044 
Commercial and Industrial4,180 20,837 25,017 
Total$25,498 $30,858 $56,356 
December 31, 2025
Nonaccrual with No Allowance for Credit LossNonaccrual with an Allowance for Credit LossTotal Nonaccrual Loans
Real estate:
Residential$7,435 $306 $7,741 
Commercial10,159 5,465 15,624 
Construction4,717 — 4,717 
Commercial and Industrial6,907 19,432 26,339 
Total$29,218 $25,203 $54,421 
Collateral dependent loans amortized cost
(in thousands)September 30, 2026December 31, 2025
Real estate:
Residential$4,052 $6,449 
Commercial11,612 15,653 
Construction13,320 5,079 
Commercial and Industrial16,364 18,605 
Total$45,348 $45,786 
Schedule of Loan Modifications to Borrowers Experiencing Financial Difficulty
The Company made five loan modifications on loans to borrowers experiencing financial difficulty during the three months ended September 30, 2026 as follows:
Modifications
(in thousands)Amortized Cost Basis% of Total Loan TypeFinancial Effect
Real estate:
Commercial$267 0.026 %
For one loan, a payment deferral of 9 months, after which payments resume on a fully amortizing basis.
Commercial and Industrial958 0.124 %
For two loans, reduced contractual interest rate from 9.500% to 6.000% for a modification period of 6.5 months, after which payments resume on a fully amortizing principal and interest basis for the remaining term.
For one loan, a payment deferral of 6 months, after which payments resume on a fully amortizing principal and interest basis for the remaining term.
For one loan, restructured payment terms for an interest-only payment period of 6 months, followed by a return to fully amortizing principal and interest payments under contractual terms.
Total$1,225 
The Company made seventeen loan modifications on loans to borrowers experiencing financial difficulty during the nine months ended September 30, 2026 as follows:
Modifications
(in thousands)Amortized Cost Basis% of Total Loan TypeFinancial Effect
Real estate:
Commercial$5,246 0.512 %
For one loan, a payment deferral of 9 months, after which payments resume on a fully amortizing basis.
For two loans, contractual interest rates were reduced from 9.500% and 9.000% to 6.000% and 6.000% for a modification period of 18 months. The modifications also include a cash flow recapture mechanism intended to recover interest income forgone during the modification period.
For two loans, restructured payment terms for 8 months, after which payments resume on a fully amortizing principal and interest basis for the remaining term.
Commercial and Industrial6,987 0.902 %
For two loans, reduced contractual interest rate based from 9.500% to 6.000% for a modification period of 6.5 months, after which payments resume on a fully amortizing principal and interest basis for the remaining term.
For one loan, a payment deferral of 6 months, after which payments resume on a fully amortizing principal and interest basis for the remaining term.
For one loan, restructured payment terms for an interest-only payment period of 6 months, followed by a return to fully amortizing principal and interest payments under contractual terms.
For one loan, the contractual interest rate was reduced from 8.250% to 6.000% for a modification period of 18 months. The modification also includes a cash flow recapture mechanism intended to recover interest income forgone during the modification period.
For one loan, restructured payment terms for 8 months, after which payments resume on a fully amortizing principal and interest basis for the remaining term.
For one loan, a payment deferral of 6 months followed by modified payments for 15 months, after which payments resume on a fully amortizing principal and interest basis for the remaining term.
For two loans, a payment deferral of 3 months and subsequent 4 months interest-only payment period, followed by a return to fully amortizing principal and interest payments under original contractual terms.
For one loan, a payment deferral of 4 months and reduced contractual floating interest rate based on Prime to 7.000% fixed rate for 6 months.
For one loan, a payment deferral of 6 months.
For one loan, a payment deferral of 7 months.
Total$12,233 
The Company made no loan modifications on loans to borrowers experiencing financial difficulty during the three months ended September 30, 2025. The Company made one loan modification on loans to borrowers experiencing financial difficulty during the nine months ended September 30, 2025.
(in thousands)Amortized Cost Basis% of Total Loan TypeFinancial Effect
Real estate:
Commercial and Industrial$44 0.007 %Extended maturity date of one loan which reduced monthly payment amount for the borrower.
Total$44 
Schedule of Financing Receivable Modified Past Due
The following table presents the payment status of loans that have been modified in the last twelve months:
September 30, 2026
Past DuePast Due
(in thousands)Current30-89 Days90 Days or MoreNonaccrualTotal
Real estate:
Commercial$3,182 $— $— $3,736 $6,918 
Commercial and Industrial 5 571 — 5,726 6,302 
$3,187 $571 $— $9,462 $13,220 
Schedule of Loans Receivables Credit Quality Indicators
The following table presents the balances of classified loans based on the most recent credit quality indicator analysis. Classified loans include Special Mention, Substandard and Doubtful loans. Pass classified loans include loans graded exceptional, very good, good, satisfactory, and pass/watch. Credit card loans are ungraded as they are not individually graded. Charge-offs presented represent gross charge-offs recognized in the current period:
September 30, 2026Term Loans by Origination Year
(in thousands)20262025202420232022PriorRevolvingTotal
Residential – Real estate
Pass$135,401 $173,398 $100,822 $88,216 $95,025 $181,312 $— $774,174 
Special Mention— — 355 2,573 — 1,244 — 4,172 
Substandard— — — — 132 5,742 — 5,874 
Doubtful— — — — — — — — 
Total135,401 173,398 101,177 90,789 95,157 188,298 — 784,220 
Commercial – Real estate
Pass124,110 194,692 197,462 48,839 101,660 290,884 — 957,647 
Special Mention— — — 2,300 38,107 7,840 — 48,247 
Substandard— — — 5,865 5,039 7,956 — 18,860 
Doubtful— — — — — — — — 
Total124,110 194,692 197,462 57,004 144,806 306,680 — 1,024,754 
Construction – Real estate
Pass84,765 125,442 58,344 35,144 34,833 17,518 — 356,046 
Special Mention— — — 1,000 — 6,030 — 7,030 
Substandard— 372 5,946 7,163 — 4,131 — 17,612 
Doubtful— — — — — — — — 
Total84,765 125,814 64,290 43,307 34,833 27,679 — 380,688 
Commercial and Industrial
Pass175,282 170,580 132,168 56,412 79,772 122,731 — 736,945 
Special Mention1,545 — — 3,003 — 3,769 — 8,317 
Substandard— 2,092 851 13,050 1,724 11,318 — 29,035 
Doubtful— — — — — — — — 
Total176,827 172,672 133,019 72,465 81,496 137,818 — 774,297 
Other consumer
Pass4,117 336 949 — 26 111 — 5,539 
Special Mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Total4,117 336 949 — 26 111 — 5,539 
Credit card
Ungraded— — — — — — 149,184 149,184 
Portfolio loans receivable, gross$525,220 $666,912 $496,897 $263,565 $356,318 $660,586 $149,184 $3,118,682 
September 30, 2026
(in thousands)20262025202420232022PriorRevolvingTotal
Gross Charge-Offs
Residential real estate$— $— $— $— $174 $6 $— $180 
Commercial real estate— — — — — — — — 
Construction— — — — 27 356 — 383 
Commercial and Industrial— 214 183 352 649 241 — 1,639 
Credit card— — — — — — 9,220 9,220 
Total$— $214 $183 $352 $850 $603 $9,220 $11,422 
December 31, 2025Term Loans by Origination Year
(in thousands)20252024202320222021PriorRevolvingTotal
Residential – Real estate
Pass$217,066 $110,098 $99,956 $101,423 $68,092 $153,724 $— $750,359 
Special Mention— — 1,992 1,882 1,236 3,567 — 8,677 
Substandard— 287 — 132 792 5,561 — 6,772 
Doubtful— — — — — — — — 
Total217,066 110,385 101,948 103,437 70,120 162,852 — 765,808 
Commercial – Real estate
Pass197,639 206,587 56,303 126,746 125,612 218,736 — 931,623 
Special Mention— — 2,300 39,276 4,933 2,820 — 49,329 
Substandard— 86 5,957 5,860 1,744 2,482 — 16,129 
Doubtful— — — — — — — — 
Total197,639 206,673 64,560 171,882 132,289 224,038 — 997,081 
Construction – Real estate
Pass110,320 94,973 77,852 41,729 7,198 18,856 — 350,928 
Special Mention— — 1,000 — 724 — — 1,724 
Substandard— — 255 2,197 1,536 2,926 — 6,914 
Doubtful— — — — — — — — 
Total110,320 94,973 79,107 43,926 9,458 21,782 — 359,566 
Commercial and Industrial
Pass210,890 146,107 94,365 91,066 30,540 95,813 — 668,781 
Special Mention— — — 320 — 221 — 541 
Substandard— 892 14,941 2,414 5,401 5,319 — 28,967 
Doubtful— — — — — — — — 
Total210,890 146,999 109,306 93,800 35,941 101,353 — 698,289 
Other consumer
Pass760 963 — 46 40 121 — 1,930 
Special Mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Total760 963 — 46 40 121 — 1,930 
Credit card
Ungraded— — — — — — 142,397 142,397 
Portfolio loans receivable, gross$736,675 $559,993 $354,921 $413,091 $247,848 $510,146 $142,397 $2,965,071 
December 31, 2025
(in thousands)20252024202320222021PriorRevolvingTotal
Gross Charge-Offs
Residential real estate$— $— $— $— $— $— $— $— 
Commercial real estate— — — 197 — 1,695 — 1,892 
Construction— — — — — 264 — 264 
Commercial and Industrial— 101 2,339 347 8 625 — 3,420 
Credit card— — — — — — 9,036 9,036 
Total$— $101 $2,339 $544 $8 $2,584 $9,036 $14,612 
Schedule of Outstanding Loan Commitments
Outstanding loan commitments were as follows:
(in thousands)September 30, 2026December 31, 2025
Unused lines of credit on portfolio loans held for investment
Real Estate:
Residential$14,018 $22,858 
Residential - Home Equity39,793 41,864 
Commercial37,102 69,887 
Construction112,417 91,203 
Commercial and Industrial103,177 90,990 
Credit card(1)
150,980 138,632 
Other consumer235 232 
Total$457,722 $455,666 
Unused lines of credit on loans reclassified to held for sale (pending branch sale)
Real Estate:
Residential$593 $— 
Residential - Home Equity789 
Commercial1,351 — 
Commercial and Industrial94 — 
Total$2,827 $— 
Letters of credit$1,797 $1,633 
_______________
(1)Outstanding loan commitments in the credit card portfolio include $97.7 million and $95.9 million in secured and partially secured balances as of September 30, 2026 and December 31, 2025, respectively.
Schedule of Credit Losses for Financing Receivables Activity for this account is as follows for the periods presented:
Three months endedNine months ended
(in thousands)September 30, 2026September 30, 2025September 30, 2026September 30, 2025
Balance at beginning of period$1,649 $1,191 $1,379 $1,191 
Provision for (release of) credit losses on unfunded commitments(54)217 216 217 
Balance at end of period$1,595 $1,408 $1,595 $1,408 
Activity in this reserve is as follows for the periods presented:
Three months endedNine months ended
(in thousands)September 30, 2026September 30, 2025September 30, 2026September 30, 2025
Balance at beginning of period$1,465 $2,294 $2,339 $2,260 
Reserve utilization— — (916)— 
Provision for put-back reserve15 19 57 53 
Balance at end of period$1,480 $2,313 $1,480 $2,313