Loans and Allowance for Credit Losses on Loans HFI

6 Months Ended

Jun. 30, 2026

Loans and Allowance for Credit Losses on Loans HFI

Loans and allowance for credit losses on loans HFI

Loans outstanding as of June 30, 2026 and December 31, 2025, by class of financing receivable are as follows:


	June 30,		December 31,

	2026		2025
Commercial and industrial	$	2,259,794	$	2,181,935
Construction	1,157,961		1,188,494
Residential real estate:
1-to-4 family mortgage	1,917,533		1,838,122
Residential line of credit	802,753		741,309
Multi-family mortgage	767,500		745,360
Commercial real estate:
Owner-occupied	2,252,681		2,148,870
Non-owner occupied	3,016,923		2,900,499
Consumer and other	690,365		639,037
Gross loans	12,865,510		12,383,626
Less: Allowance for credit losses on loans HFI	(194,010)		(185,983)
Net loans	$	12,671,500	$	12,197,643

As of June 30, 2026 and December 31, 2025, $991,819 and $988,111, respectively, of qualifying residential mortgage loans (including loans held for sale) and $2,884,796 and $2,829,765, respectively, of qualifying commercial mortgage loans were pledged to the FHLB system securing advances against the Bank’s line of credit. Additionally, as of June 30, 2026 and December 31, 2025, qualifying commercial and industrial, construction and consumer loans, of $2,723,084 and $2,879,586, respectively, were pledged to the Federal Reserve under the Borrower-in-Custody program.

The amortized cost of loans HFI on the consolidated balance sheets exclude accrued interest receivable as the Company presents accrued interest receivable separately on the consolidated balance sheets. As of June 30, 2026 and December 31, 2025, accrued interest receivable on loans HFI amounted to $50,497 and $50,140, respectively.

Credit Quality - Commercial Type Loans

The Company categorizes commercial loan types into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans that share similar risk characteristics collectively. Loans that do not share similar risk characteristics may be evaluated individually.

The Company uses the following definitions for risk ratings:


			Pass.			Loans rated Pass include those that are adequately collateralized performing loans which management believes do not have conditions that have occurred or may occur that would result in the loan being downgraded into an inferior category. The Pass category also includes commercial loans rated as Watch, which include those that management believes have conditions that have occurred, or may occur, which could result in the loan being downgraded to an inferior category.




			Special Mention.			Loans rated Special Mention are those that have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution’s credit position at some future date. Management does not believe there will be a loss of principal or interest. These loans require intensive servicing and may possess more than normal credit risk.




			Classified.			Loans included in the Classified category include loans rated as Substandard and Doubtful. Loans rated as Substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful loans have all the weaknesses inherent in those classified as Substandard, with the added characteristic that the weakness or weaknesses make collection or liquidation in full, based on currently existing facts, conditions, and values, highly questionable and improbable.

Risk ratings are updated on an ongoing basis and are subject to change by continuous loan monitoring processes.

The following tables present the credit quality of the Company’s commercial type loan portfolio as of June 30, 2026 and December 31, 2025 and the gross charge-offs for the six months ended June 30, 2026 and the year ended December 31, 2025 by year of origination. Revolving loans are presented separately. Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal constitutes a current period origination.





As of and for the six months ended June 30, 2026	2026		2025		2024		2023		2022		Prior		Revolving Loans Amortized Cost Basis		Total
Commercial and industrial
Pass	$	191,729	$	242,593	$	160,995	$	183,559	$	96,689	$	126,456	$	1,175,935	$	2,177,956
Special Mention	525		552		2,258		4,663		1,893		3,094		24,051		37,036
Classified	1,631		263		2,560		3,075		1,063		6,175		30,035		44,802

Total	193,885		243,408		165,813		191,297		99,645		135,725		1,230,021		2,259,794

Current-period gross charge-offs	—		74		54		233		603		862		979		2,805
Construction
Pass	182,570		346,699		145,596		20,364		101,803		92,978		202,802		1,092,812
Special Mention	379		487		—		—		3,105		13,605		—		17,576
Classified	—		—		86		366		16,113		31,008		—		47,573

Total	182,949		347,186		145,682		20,730		121,021		137,591		202,802		1,157,961

Current-period gross charge-offs	—		—		62		—		253		—		—		315
Residential real estate:

Multi-family mortgage
Pass	53,909		38,902		29,689		36,968		239,605		315,620		24,089		738,782
Special Mention	—		—		—		—		8,892		2,799		—		11,691
Classified	—		—		—		—		9,608		7,419		—		17,027

Total	53,909		38,902		29,689		36,968		258,105		325,838		24,089		767,500


Current-period gross charge-offs	—		—		—		—		—		—		—		—
Commercial real estate:
Owner occupied
Pass	171,310		360,395		306,367		182,669		322,176		715,428		122,629		2,180,974
Special Mention	—		781		1,359		10,082		5,829		16,113		8,158		42,322
Classified	—		1,231		1,613		4,801		7,156		14,435		149		29,385

Total	171,310		362,407		309,339		197,552		335,161		745,976		130,936		2,252,681

Current-period gross charge-offs	—		—		—		—		—		—		—		—
Non-owner occupied
Pass	281,312		303,965		215,032		129,839		658,924		1,226,642		115,421		2,931,135
Special Mention	—		—		—		—		16,710		39,335		—		56,045
Classified	—		—		1,431		10,475		2,316		15,521		—		29,743

Total	281,312		303,965		216,463		140,314		677,950		1,281,498		115,421		3,016,923




Current-period gross charge-offs	—		—		—		—		—		—		—		—
Total commercial loan types
Pass	880,830		1,292,554		857,679		553,399		1,419,197		2,477,124		1,640,876		9,121,659
Special Mention	904		1,820		3,617		14,745		36,429		74,946		32,209		164,670
Classified	1,631		1,494		5,690		18,717		36,256		74,558		30,184		168,530

Total	$	883,365	$	1,295,868	$	866,986	$	586,861	$	1,491,882	$	2,626,628	$	1,703,269	$	9,454,859
Current-period gross charge-offs	$	—	$	74	$	116	$	233	$	856	$	862	$	979	$	3,120





As of and for the year ended December 31, 2025	2025		2024		2023		2022		2021		Prior		Revolving Loans Amortized Cost Basis		Total
Commercial and industrial
Pass	$	272,440	$	198,802	$	195,571	$	99,265	$	43,851	$	108,067	$	1,162,291	$	2,080,287
Special Mention	64		1,934		5,223		5,911		1,052		7,634		20,994		42,812
Classified	255		2,138		419		14,972		300		6,981		33,771		58,836

Total	272,759		202,874		201,213		120,148		45,203		122,682		1,217,056		2,181,935
Current-period gross charge-offs	—		—		54		—		—		2,478		604		3,136

Construction
Pass	343,056		201,130		36,715		171,803		71,877		74,429		221,953		1,120,963
Special Mention	—		396		3,167		9,456		10,108		—		—		23,127
Classified	—		152		3,351		21,303		230		5,451		13,917		44,404

Total	343,056		201,678		43,233		202,562		82,215		79,880		235,870		1,188,494
Current-period gross charge-offs	—		—		—		—		—		399		—		399

Residential real estate:

Multi-family mortgage
Pass	65,268		34,872		38,022		234,272		196,870		144,904		22,953		737,161
Special Mention	—		—		—		—		—		—		—		—
Classified	—		—		—		569		7,613		17		—		8,199

Total	65,268		34,872		38,022		234,841		204,483		144,921		22,953		745,360
Current-period gross charge-offs	—		—		—		—		—		—		—		—


Commercial real estate:
Owner occupied
Pass	356,246		309,181		199,470		335,067		266,328		517,046		124,340		2,107,678
Special Mention	—		403		4,407		1,351		6,183		14,256		239		26,839
Classified	—		1,622		1,024		7,389		100		3,182		1,036		14,353

Total	356,246		311,206		204,901		343,807		272,611		534,484		125,615		2,148,870
Current-period gross charge-offs	—		—		—		—		—		17		—		17

Non-owner occupied
Pass	297,096		237,840		144,572		714,151		558,116		788,545		122,713		2,863,033
Special Mention	—		10,341		—		6,135		4,568		6,018		—		27,062
Classified	—		1,167		1,008		2,249		4,602		1,378		—		10,404

Total	297,096		249,348		145,580		722,535		567,286		795,941		122,713		2,900,499
Current-period gross charge-offs	—		—		—		—		—		—		—		—

Total commercial loan types
Pass	1,334,106		981,825		614,350		1,554,558		1,137,042		1,632,991		1,654,250		8,909,122
Special Mention	64		13,074		12,797		22,853		21,911		27,908		21,233		119,840
Classified	255		5,079		5,802		46,482		12,845		17,009		48,724		136,196
Total	$	1,334,425	$	999,978	$	632,949	$	1,623,893	$	1,171,798	$	1,677,908	$	1,724,207	$	9,165,158
Current-period gross charge-offs	$	—	$	—	$	54	$	—	$	—	$	2,894	$	604	$	3,552

Credit Quality - Consumer Type Loans

For consumer and residential loan classes, the Company primarily evaluates credit quality based on delinquency and accrual status of the loan, credit documentation and by payment activity. The performing or nonperforming status is updated on an on-going basis dependent upon improvement and deterioration in credit quality. Nonperforming loans include loans that are no longer accruing interest (nonaccrual loans) and loans past due ninety or more days and still accruing interest.

The following tables present the credit quality by classification of the Company’s consumer type loan portfolio as of June 30, 2026 and December 31, 2025 and the gross charge-offs for the six months ended June 30, 2026 and the year ended December 31, 2025 by year of origination. Revolving loans are presented separately. Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal constitutes a current period origination.





As of and for the six months ended June 30, 2026	2026		2025		2024		2023		2022		Prior		Revolving Loans Amortized Cost Basis		Total





Residential real estate:
1-to-4 family mortgage
Performing	$	277,978	$	299,133	$	193,051	$	116,427	$	378,253	$	624,191	$	—	$	1,889,033
Nonperforming	—		1,112		1,247		1,658		7,420		17,063		—		28,500
Total	277,978		300,245		194,298		118,085		385,673		641,254		—		1,917,533
Current-period gross charge-offs	—		—		43		58		566		159		—		826
Residential line of credit
Performing	—		—		—		—		—		—		800,952		800,952
Nonperforming	—		—		—		—		—		—		1,801		1,801
Total	—		—		—		—		—		—		802,753		802,753
Current-period gross charge-offs	—		—		—		—		—		—		23		23
Consumer and other
Performing	69,564		165,901		140,776		74,927		62,962		148,746		5,593		668,469
Nonperforming	54		3,558		4,568		3,565		1,646		8,504		1		21,896
Total	69,618		169,459		145,344		78,492		64,608		157,250		5,594		690,365
Current-period gross charge-offs	815		586		280		215		171		479		—		2,546
Total consumer type loans
Performing	347,542		465,034		333,827		191,354		441,215		772,937		806,545		3,358,454
Nonperforming	54		4,670		5,815		5,223		9,066		25,567		1,802		52,197
Total	$	347,596	$	469,704	$	339,642	$	196,577	$	450,281	$	798,504	$	808,347	$	3,410,651
Current-period gross charge-offs	$	815	$	586	$	323	$	273	$	737	$	638	$	23	$	3,395





As of and for the year ended December 31, 2025	2025		2024		2023		2022		2021		Prior		Revolving Loans Amortized Cost Basis		Total





Residential real estate:
1-to-4 family mortgage
Performing	$	333,641	$	219,642	$	154,059	$	408,746	$	339,076	$	350,453	$	—	$	1,805,617
Nonperforming	520		1,063		1,274		10,396		6,853		12,399		—		32,505
Total	334,161		220,705		155,333		419,142		345,929		362,852		—		1,838,122
Prior-period gross charge-offs	—		—		3		—		—		1,123		—		1,126
Residential line of credit
Performing	—		—		—		—		—		—		739,295		739,295
Nonperforming	—		—		—		—		—		—		2,014		2,014
Total	—		—		—		—		—		—		741,309		741,309
Prior-period gross charge-offs	—		—		—		—		—		—		—		—
Consumer and other
Performing	149,560		153,638		80,874		68,023		30,289		128,726		5,874		616,984
Nonperforming	1,689		4,716		4,006		2,033		3,103		6,505		1		22,053
Total	151,249		158,354		84,880		70,056		33,392		135,231		5,875		639,037
Prior-period gross charge-offs	2,101		110		76		104		86		1,715		4		4,196
Total consumer type loans
Performing	483,201		373,280		234,933		476,769		369,365		479,179		745,169		3,161,896
Nonperforming	2,209		5,779		5,280		12,429		9,956		18,904		2,015		56,572
Total	$	485,410	$	379,059	$	240,213	$	489,198	$	379,321	$	498,083	$	747,184	$	3,218,468
Prior-period gross charge-offs	$	2,101	$	110	$	79	$	104	$	86	$	2,838	$	4	$	5,322

Nonaccrual and Past Due Loans

The following tables represent an analysis of the aging by class of financing receivable as of June 30, 2026 and December 31, 2025:


June 30, 2026	30-89 days past due and accruing interest		90 days or more and accruing interest		Nonaccrual loans		Loans current on payments and accruing interest		Total
Commercial and industrial	$	3,869	$	14,180	$	7,217	$	2,234,528	$	2,259,794
Construction	2,400		48		30,709		1,124,804		1,157,961
Residential real estate:
1-to-4 family mortgage	23,307		17,639		10,861		1,865,726		1,917,533
Residential line of credit	3,843		572		1,229		797,109		802,753
Multi-family mortgage	—		—		7,419		760,081		767,500
Commercial real estate:
Owner occupied	8,597		391		14,202		2,229,491		2,252,681
Non-owner occupied	1,917		1,052		22,768		2,991,186		3,016,923
Consumer and other	15,188		7,718		14,178		653,281		690,365
Total	$	59,121	$	41,600	$	108,583	$	12,656,206	$	12,865,510


December 31, 2025	30-89 days past due and accruing interest		90 days or more and accruing interest		Nonaccrual loans		Loans current on payments and accruing interest		Total
Commercial and industrial	$	3,068	$	84	$	6,289	$	2,172,494	$	2,181,935
Construction	2,435		—		34,208		1,151,851		1,188,494
Residential real estate:
1-to-4 family mortgage	28,957		23,742		8,763		1,776,660		1,838,122
Residential line of credit	2,921		799		1,215		736,374		741,309
Multi-family mortgage	2,788		—		8,199		734,373		745,360
Commercial real estate:
Owner occupied	4,961		—		10,606		2,133,303		2,148,870
Non-owner occupied	1,932		—		4,514		2,894,053		2,900,499
Consumer and other	19,744		8,126		13,927		597,240		639,037
Total	$	66,806	$	32,751	$	87,721	$	12,196,348	$	12,383,626

The following tables provide the amortized cost basis of loans on nonaccrual status, as well as any related allowance as of June 30, 2026 and December 31, 2025 by class of financing receivable.



June 30, 2026	Nonaccrual with no related allowance		Nonaccrual with related allowance
Commercial and industrial	$	—	$	7,217
Construction	1,654		29,055
Residential real estate:
1-to-4 family mortgage	—		10,861
Residential line of credit	—		1,229
Multi-family mortgage	7,408		11
Commercial real estate:
Owner occupied	4,920		9,282
Non-owner occupied	10,725		12,043
Consumer and other	—		14,178
Total	$	24,707	$	83,876


December 31, 2025	Nonaccrual with no related allowance		Nonaccrual with related allowance

Commercial and industrial	$	862	$	5,427
Construction	14,617		19,591
Residential real estate:
1-to-4 family mortgage	—		8,763
Residential line of credit	—		1,215
Multi-family mortgage	7,613		586
Commercial real estate:
Owner occupied	1,095		9,511
Non-owner occupied	2,032		2,482
Consumer and other	—		13,927
Total	$	26,219	$	61,502

The following presents interest income recognized on nonaccrual loans for the three and six months ended June 30, 2026 and 2025:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Commercial and industrial	$	1	$	27	$	27	$	30
Construction	—		496		—		502
Residential real estate:
1-to-4 family mortgage	—		6		4		6
Residential line of credit	16		24		38		31
Multi-family mortgage	—		166		—		166
Commercial real estate:
Owner occupied	—		—		52		8
Non-owner occupied	22		112		35		112
Consumer and other	—		55		7		59
Total	$	39	$	886	$	163	$	914

Accrued interest receivable written off as an adjustment to interest income amounted to $398 and $643 for the three and six months ended June 30, 2026, respectively, and $1,054 and $1,341 for the three and six months ended June 30, 2025, respectively.

Loan Modifications to Borrowers Experiencing Financial Difficulty

Occasionally, the Company may make certain modifications of loans to borrowers experiencing financial difficulty. These modifications may be in the form of an interest rate reduction, a term extension, principal forgiveness, payment deferral or a combination thereof. Upon the Company’s determination that a modified loan has subsequently been deemed uncollectible, the portion of the loan deemed uncollectible is charged off against the allowance for credit losses on loans HFI. The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. Tables within this section exclude loans that were paid off or are otherwise no longer in the loan portfolio as of period end.

The following table presents the amortized cost of FDM loans as of June 30, 2026 and 2025 by type of concession granted that were modified during the three and six months ended June 30, 2026 and 2025.


	Term Extension		Payment deferral		Interest Rate Reduction		Combination(1)		Total		% of total class of financing receivables
Three Months Ended June 30, 2026
Commercial and industrial	$	56	$	333	$	—	$	45	$	434	—	%

Residential real estate:
1-to-4 family mortgage	1,075		—		—		—		1,075		0.1	%

Multi-family mortgage	7,408		—		—		—		7,408		1.0	%




Total	$	8,539	$	333	$	—	$	45	$	8,917	0.1	%

Six Months Ended June 30, 2026
Commercial and industrial	$	7,339	$	1,792	$	—	$	45	$	9,176	0.4	%
Construction	13,722		—		—		—		13,722		1.2	%
Residential real estate:
1-to-4 family mortgage	2,030		—		—		160		2,190		0.1	%

Multi-family mortgage	7,408		—		—		—		7,408		1.0	%



Consumer and other	35		—		—		—		35		—	%
Total	$	30,534	$	1,792	$	—	$	205	$	32,531	0.3	%

Three Months Ended June 30, 2025
Commercial and industrial	$	—	$	—	$	—	$	100	$	100	—	%
Construction	—		—		—		3,305		3,305		0.3	%
Residential real estate:
1-to-4 family mortgage	463		1,833		—		—		2,296		0.1	%






Total	$	463	$	1,833	$	—	$	3,405	$	5,701	0.1	%

Six Months Ended June 30, 2025
Commercial and industrial	$	149	$	—	$	—	$	100	$	249	—	%
Construction	540		—		144		3,305		3,989		0.4	%
Residential real estate:
1-to-4 family mortgage	463		1,833		—		—		2,296		0.1	%





Consumer and other	—		—		—		63		63		—	%
Total	$	1,152	$	1,833	$	144	$	3,468	$	6,597	0.1	%














(1) Includes FDM loans modified with a combination of term extension, payment deferral and interest rate reduction modifications.

The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficulty:


Three Months Ended June 30, 2026	Weighted average term extension (in months)	Weighted average payment deferral (in months)	Weighted average interest rate reduction
Commercial and industrial	21	6	—%

Residential real estate:
1-to-4 family mortgage	14	—	—%

Multi-family mortgage	12	—	—%


Six Months Ended June 30, 2026	Weighted average term extension (in months)	Weighted average payment deferral (in months)	Weighted average interest rate reduction
Commercial and industrial	6	30	—%
Construction	12	—	—%
Residential real estate:
1-to-4 family mortgage	28	—	1.76%

Multi-family mortgage	12	—	—%



Consumer and other	20	—	—%


Three Months Ended June 30, 2025	Weighted average term extension (in months)	Weighted average payment deferral (in months)	Weighted average interest rate reduction
Commercial and industrial	4	4	—%
Construction	4	4	—%
Residential real estate:
1-to-4 family mortgage	300	4	—%


Six Months Ended June 30, 2025	Weighted average term extension (in months)	Weighted average payment deferral (in months)	Weighted average interest rate reduction
Commercial and industrial	23	4	—%
Construction	4	4	2.50%
Residential real estate:
1-to-4 family mortgage	300	4	—%





Consumer and other	13	—	2.00%

For FDM loans, a subsequent payment default is defined as the earlier of the FDM loans being placed on nonaccrual status or reaching 30 days past due with respect to principal and/or interest payments.

The following tables depict loans that defaulted during the three and six months ended June 30, 2026 and six months ended June 30, 2025 that were previously modified in the prior 12 months. No financing receivables modified in the preceding twelve months had a payment default during the three months ended June 30, 2025.


	Term Extension		Payment deferral		Interest Rate Reduction		Combination(1)
Three Months Ended June 30, 2026
Commercial and industrial	$	2	$	2,521	$	—	$	—

Residential real estate:
1-to-4 family mortgage	1,414		1,138		—		—


Commercial real estate:
Owner occupied	39		—		—		—
Non-owner occupied	—		4,586		—		—
Consumer and other	—		—		—		59

Six Months Ended June 30, 2026
Commercial and industrial	2		2,521		—		—

Residential real estate:
1-to-4 family mortgage	1,547		1,138		—		—


Commercial real estate:
Owner occupied	39		—		—		—
Non-owner occupied	—		4,586		—		—
Consumer and other	—		—		—		96













Six Months Ended June 30, 2025

Construction	143		—		—		—







Consumer and other	—		—		—		63
(1) Includes FDM loans modified with a combination of term extension, payment deferral and interest rate reduction modifications.

At June 30, 2026, the Company had $1,400 of commitments to lend additional funds to borrowers whose loans were classified as a FDM loan. There were no such commitments as of June 30, 2025.

The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The tables below depict the performance of loans HFI as of June 30, 2026 and 2025 made to borrowers experiencing financial difficulty that were modified in the prior 12 months.


June 30, 2026	30-89 days past due and accruing interest		90 days or more and accruing interest		Nonaccrual loans(1)		Loans current on payments and accruing interest		Total
Commercial and industrial	$	—	$	—	$	1,819	$	10,286	$	12,105
Construction	—		—		13,721		—		13,721
Residential real estate:
1-to-4 family mortgage	1,169		359		—		3,941		5,469

Multi-family mortgage	—		—		7,408		—		7,408
Commercial real estate:
Owner-occupied	—		—		224		—		224
Non-owner occupied	—		—		1,024		3,562		4,586
Consumer and other	—		—		—		137		137
Total	$	1,169	$	359	$	24,196	$	17,926	$	43,650

(1) Loans were on nonaccrual when modified and subsequently classified as FDM.


June 30, 2025	30-89 days past due and accruing interest		90 days or more and accruing interest		Nonaccrual loans(1)		Loans current on payments and accruing interest		Total
Commercial and industrial	$	—	$	—	$	—	$	249	$	249
Construction	—		—		5,312		683		5,995
Residential real estate:
1-to-4 family mortgage	367		—		—		2,609		2,976
Residential line of credit	—		—		—		29		29
Multi-family mortgage	—		—		—		—		—



Consumer and other	—		—		—		62		62
Total	$	367	$	—	$	5,312	$	3,632	$	9,311

(1) Loans were on nonaccrual when modified and subsequently classified as FDM.

Collateral-Dependent Loans

For collateral-dependent loans, or those loans for which repayment is expected to be provided substantially through the operation or sale of collateral, where the borrower is also experiencing financial difficulty, the following tables present the loans by class of financing receivable.


	June 30, 2026
	Type of Collateral
	Real Estate		Land		Business Assets		Total
Commercial and industrial	$	—	$	—	$	28,734	$	28,734
Construction	41,199		1,653		—		42,852
Residential real estate:
1-to-4 family mortgage	3,622		—		—		3,622

Multi-family mortgage	17,016		—		—		17,016
Commercial real estate:
Owner occupied	17,534		7,018		—		24,552
Non-owner occupied	29,475		—		—		29,475

Total	$	108,846	$	8,671	$	28,734	$	146,251


	December 31, 2025
	Type of Collateral
	Real Estate		Land		Business Assets		Total
Commercial and industrial	$	—	$	—	$	27,222	$	27,222
Construction	35,297		5,497		—		40,794
Residential real estate:
1-to-4 family mortgage	3,488		—		—		3,488

Multi-family mortgage	7,613		—		—		7,613
Commercial real estate:
Owner occupied	1,883		8,027		—		9,910
Non-owner occupied	10,171		—		—		10,171

Total	$	58,452	$	13,524	$	27,222	$	99,198

Allowance for Credit Losses on Loans HFI

Effective June 30, 2025, the Company changed certain estimation techniques, inputs, and assumptions used to estimate expected credit losses on loan portfolios and unfunded commitments. Following a periodic review of its credit loss estimation process, the Company adopted a discounted cash flow methodology, adjusted for current conditions and reasonable and supportable forecasts, for all loan segments except consumer and other loans, which utilize the weighted average remaining maturity methodology. The same methodologies are used to estimate expected credit losses on off-balance sheet commitments. Additional information regarding these changes is included in Note 1, “Basis of presentation and summary of significant accounting policies,” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

The Company performed evaluations within its updated qualitative framework, assessing for information not otherwise captured in model loss estimation process. The Company considers the qualitative factors that are relevant to the institution as of the reporting date, which may include, but are not limited to: levels of and trends in delinquencies and performance of loans; levels of and trends in write-offs and recoveries collected; trends in volume and terms of loans; effects of any changes in reasonable and supportable economic forecasts; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and expertise; available relevant information sources that contradict the Company’s own forecast; effects of changes in prepayment expectations or other factors affecting assessments of loan contractual terms; industry conditions; and effects of changes in credit concentrations.

The following tables provide the changes in the allowance for credit losses on loans HFI by class of financing receivable for the three and six months ended June 30, 2026 and 2025:


	Commercial and industrial		Construction		1-to-4 family residential mortgage		Residential line of credit		Multi-family residential mortgage		Commercial real estate owner occupied		Commercial real estate non-owner occupied		Consumer and other		Total
Three Months Ended June 30, 2026
Beginning balance - March 31, 2026	$	25,468	$	27,523	$	33,181	$	10,537	$	10,361	$	22,135	$	34,989	$	22,130	$	186,324

Loans charged off	(637)		(111)		(421)		—		—		—		—		(1,313)		(2,482)
Recoveries of loans previously charged-off	148		2		58		1		—		16		—		288		513
Provision for (reversal of) credit losses on loans HFI	1,296		43		1,028		(352)		1,205		(2,190)		7,014		1,611		9,655
Ending balance - June 30, 2026	$	26,275	$	27,457	$	33,846	$	10,186	$	11,566	$	19,961	$	42,003	$	22,716	$	194,010
Six Months Ended June 30, 2026
Beginning balance - December 31, 2025	$	24,130	$	25,633	$	33,218	$	10,589	$	12,260	$	21,609	$	36,235	$	22,309	$	185,983

Loans charged-off	(2,805)		(315)		(826)		(23)		—		—		—		(2,546)		(6,515)
Recoveries of loans previously charged-off	249		27		66		1		—		29		—		693		1,065

Provision for (reversal of) credit losses on loans HFI	4,701		2,112		1,388		(381)		(694)		(1,677)		5,768		2,260		13,477
Ending balance - June 30, 2026	$	26,275	$	27,457	$	33,846	$	10,186	$	11,566	$	19,961	$	42,003	$	22,716	$	194,010


	Commercial and industrial		Construction		1-to-4 family residential mortgage		Residential line of credit		Multi-family residential mortgage		Commercial real estate owner occupied		Commercial real estate non-owner occupied		Consumer and other		Total
Three Months Ended June 30, 2025
Beginning balance - March 31, 2025	$	15,521	$	25,652	$	26,200	$	11,196	$	11,416	$	12,074	$	28,319	$	20,153	$	150,531
Loans charged off	(70)		—		(433)		—		—		—		—		(951)		(1,454)
Recoveries of loans previously charged-off	173		—		11		1		—		9		528		251		973
Impact of change in accounting estimate for current expected credit losses	3,504		(4,705)		2,717		(3,428)		258		(1,074)		(1,747)		(2,373)		(6,848)
Provision for (reversal of) credit losses on loans HFI	1,143		901		1,767		902		(780)		930		(797)		1,680		5,746
Ending balance - June 30, 2025	$	20,271	$	21,848	$	30,262	$	8,671	$	10,894	$	11,939	$	26,303	$	18,760	$	148,948
Six Months Ended June 30, 2025
Beginning balance - December 31, 2024	$	16,667	$	31,698	$	25,340	$	10,952	$	10,512	$	11,993	$	25,531	$	19,249	$	151,942
Loans charged-off	(2,971)		—		(436)		—		—		(17)		—		(1,923)		(5,347)
Recoveries of loans previously charged-off	215		—		20		1		—		30		529		754		1,549
Impact of change in accounting estimate for current expected credit losses	3,504		(4,705)		2,717		(3,428)		258		(1,074)		(1,747)		(2,373)		(6,848)
Provision for (reversal of) credit losses on loans HFI	2,856		(5,145)		2,621		1,146		124		1,007		1,990		3,053		7,652
Ending balance - June 30, 2025	$	20,271	$	21,848	$	30,262	$	8,671	$	10,894	$	11,939	$	26,303	$	18,760	$	148,948