The Company issues certain financial instruments to meet customer financing needs, including loan commitments, credit lines and letters of credit. The agreements associated with these types of unfunded loan commitments provide credit or support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates.

The same credit and underwriting policies the Company uses to evaluate and underwrite loans are also used to originate unfunded loan commitments, including obtaining collateral at exercise of the commitment. These unfunded loan commitments are only recorded in the consolidated financial statements when drawn upon and many expire without being used. The Company’s maximum off-balance sheet exposure to credit loss from these unfunded loan commitments is represented by the contractual amount of these instruments.


	June 30,		December 31,

	2026		2025
Commitments to extend credit, excluding interest rate lock commitments	$	3,288,914	$	3,198,502
Letters of credit	57,178		61,610
Balance at end of period	$	3,346,092	$	3,260,112

As of June 30, 2026 and December 31, 2025, unfunded loan commitments included above with floating interest rates totaled $3,051,958 and $3,012,819, respectively.

Effective June 30, 2025, the Company adopted a discounted cash flow methodology, adjusted for current conditions and reasonable and supportable forecasts, to estimate expected credit losses for all loan segments except consumer and other loans, which utilize the weighted average remaining maturity methodology. 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.

As part of the credit loss process, the Company estimates expected credit losses on its unfunded loan commitments under the CECL methodology. When applying this methodology, the Company considers the likelihood that funding will occur, the contractual period of exposure to credit loss, the risk of loss, historical loss experience, and current conditions along with expectations of future economic conditions.

The table below presents activity within the allowance for credit losses on unfunded loan commitments included in accrued expenses and other liabilities on the Company’s consolidated balance sheets:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Balance at beginning of period	$	15,398	$	6,493	$	16,196	$	6,107


Impact of change in accounting estimate for current expected credit losses	—		6,452		—		6,452
Provision for (reversal of) credit losses on unfunded commitments	461		(13)		(337)		373
Balance at end of period	$	15,859	$	12,932	$	15,859	$	12,932

In connection with the sale of mortgage loans to third-party private investors or government sponsored agencies, the Company makes representations and warranties as to the propriety of its origination activities, which are typical and customary to these types of transactions. Occasionally, investors require the Company to repurchase loans sold to them or otherwise indemnify the investor against certain losses under the terms of the warranties. When the Company is required to repurchase the loans, the loans are recorded at fair value in loans HFI. The total principal amount of loans repurchased or indemnified for was $353 and $1,364 for the three and six months ended June 30, 2026, respectively and $2,018 and $3,251 for the three and six months ended June 30, 2025, respectively.

At June 30, 2026 and December 31, 2025, the Company had $786 and $696, respectively, of reserves associated with potential losses on loans previously sold included in accrued expenses and other liabilities on the Company’s consolidated balance sheets.

Various legal claims arise from time to time in the normal course of business, which, in the opinion of management, will not have a material effect on the Company’s consolidated financial statements.