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Allowance for Credit Losses (ACL) (Tables)

9 Months Ended

Sep. 30, 2025

Schedule of changes in allowance for loan losses


	Residential		Residential				Residential		Comm Constr.								CRE Owner-		Non-Owner-
(Dollars in thousands)	Mortgage Sr.		Mortgage Jr.		HELOC		Construction		& Dev.		Consumer		Multifamily		Municipal		Occupied		Occupied CRE		C & I		Total
Three Months Ended September 30, 2025
Allowance for credit losses:
Balance at end of period June 30, 2025	$	54,204	$	868	$	13,884	$	7,150	$	76,297	$	18,685	$	51,088	$	2,279	$	88,223	$	165,193	$	143,175	$	621,046
Charge-offs		(698)		—		(66)		—		—		(2,969)		—		—		(655)		—		(33,174)		(37,562)
Recoveries		122		190		110		—		108		764		—		—		50		2,048		2,016		5,408
Net (charge-offs) recoveries		(576)		190		44		—		108		(2,205)		—		—		(605)		2,048		(31,158)		(32,154)
Provision (recovery) ⁽¹⁾		108		(54)		872		2,190		(18,512)		2,201		13,825		(168)		(14,023)		10,022		4,780		1,241
Balance at end of period September 30, 2025	$	53,736	$	1,004	$	14,800	$	9,340	$	57,893	$	18,681	$	64,913	$	2,111	$	73,595	$	177,263	$	116,797	$	590,133

Three Months Ended September 30, 2024
Allowance for credit losses:
Balance at end of period June 30, 2024	$	59,552	$	428	$	18,929	$	10,025	$	77,219	$	12,228	$	19,761	$	1,779	$	91,423	$	99,015	$	81,939	$	472,298
Charge-offs		(169)		—		—		—		—		(2,248)		—		—		(558)		(29)		(5,599)		(8,603)
Recoveries		37		8		175		9		57		517		—		—		26		247		1,447		2,523
Net (charge-offs) recoveries		(132)		8		175		9		57		(1,731)		—		—		(532)		218		(4,152)		(6,080)
Provision (recovery)⁽¹⁾		(6,725)		65		(272)		(2,552)		(8,611)		8,902		(2,637)		240		(6,670)		23,134		(3,111)		1,763
Balance at end of period September 30, 2024	$	52,695	$	501	$	18,832	$	7,482	$	68,665	$	19,399	$	17,124	$	2,019	$	84,221	$	122,367	$	74,676	$	467,981

(1)

A provision for credit losses for unfunded commitments of $3.8 million in the third quarter of 2025, compared to a negative provision for credit losses of ($8.7) million recorded during the third quarter of 2024 for the allowance for credit losses for unfunded commitments that is not included in the above table.


	Residential		Residential				Residential		Comm Constr.								CRE Owner-		Non-Owner-
(Dollars in thousands)	Mortgage Sr.		Mortgage Jr.		HELOC		Construction		& Dev.		Consumer		Multifamily		Municipal		Occupied		Occupied CRE		C & I		Total
Nine Months Ended September 30, 2025
Allowance for credit losses:
Balance at end of period December 31, 2024	$	42,687	$	432	$	14,845	$	9,298	$	65,553	$	17,484	$	22,279	$	1,197	$	78,753	$	111,538	$	101,214	$	465,280
Allowance Adjustment - FMV for Independent merger		1,852		—		—		—		6,448		114		20,359		—		8,075		93,820		4,773		135,441
Initial Allowance for Non-PCD loans acquired during period		8,910		85		91		4,700		11,751		254		3,805		1,947		3,186		31,557		13,685		79,971
Independent Day 1 Loan Net Charge-offs PCD⁽¹⁾		(61)		—		—		—		—		(2,323)		(18,065)		—		(1,016)		(13,036)		(22,187)		(56,688)
Charge-offs		(1,590)		(14)		(295)		—		(16)		(6,958)		—		—		(1,631)		—		(46,445)		(56,949)
Recoveries		516		279		615		—		521		2,123		—		—		167		2,391		6,496		13,108
Net (charge-offs) recoveries		(1,135)		265		320		—		505		(7,158)		(18,065)		—		(2,480)		(10,645)		(62,136)		(100,529)
Provision (recovery)⁽²⁾		1,422		222		(456)		(4,658)		(26,364)		7,987		36,535		(1,033)		(13,939)		(49,007)		59,261		9,970
Balance at end of period September 30, 2025	$	53,736	$	1,004	$	14,800	$	9,340	$	57,893	$	18,681	$	64,913	$	2,111	$	73,595	$	177,263	$	116,797	$	590,133

Nine Months Ended September 30, 2024
Allowance for credit losses:
Balance at end of period December 31, 2023	$	78,052	$	745	$	10,942	$	5,024	$	65,772	$	23,331	$	13,766	$	900	$	71,580	$	137,055	$	49,406	$	456,573
Charge-offs		(548)		—		(110)		(304)		(2,162)		(6,943)		—		—		(951)		(276)		(13,839)		(25,133)
Recoveries		252		97		744		31		1,208		2,467		66		—		537		346		6,401		12,149
Net recoveries (charge-offs)		(296)		97		634		(273)		(954)		(4,476)		66		—		(414)		70		(7,438)		(12,984)
Provision (recovery)⁽²⁾		(25,061)		(341)		7,256		2,731		3,847		544		3,292		1,119		13,055		(14,758)		32,708		24,392
Balance at end of period September 30, 2024	$	52,695	$	501	$	18,832	$	7,482	$	68,665	$	19,399	$	17,124	$	2,019	$	84,221	$	122,367	$	74,676	$	467,981

(1)

Day 1 loan net charge-offs for Independent loans, inclusive of measurement period adjustments, recorded to conform with the Company’s charge-off policies and practices.

(2)

A provision for credit losses of $23.2 million was recorded during the first nine months of 2025, including $12.1 million for the initial provision for credit losses recorded for unfunded commitments acquired from Independent during the first quarter of 2025. This compares to a negative provision for credit losses of ($14.8) million during the first nine months of 2024 for the allowance for credit losses for unfunded commitments that is not included in the above table.