Contractual Obligations and Off-Balance Sheet Items

9 Months Ended

Sep. 30, 2025

Commitments and Contingencies Disclosure [Abstract]

Contractual Obligations and Off-Balance Sheet Items

9. CONTRACTUAL OBLIGATIONS AND OFF-BALANCE SHEET ITEMS

Contractual Obligations

The Company’s contractual obligations and other commitments to make future payments (other than deposit obligations and securities sold under repurchase agreements) as of September 30, 2025, are summarized below.

Federal Home Loan Bank Borrowings

The Company’s future cash payments associated with its contractual obligations pursuant to its Federal Home Loan Bank (“FHLB”) advances as of September 30, 2025, are summarized below.


	1 year or less		More than 1 year but less than 3 years		3 years or more but less than 5 years		5 years or more		Total
	(Dollars in thousands)
FHLB advances	$	2,400,000	$	—	$	—	$	—	$	2,400,000

Leases

The Company’s leases relate primarily to operating leases for office space and banking centers. The Company determines if an arrangement is a lease or contains a lease at inception. The Company’s leases have remaining lease terms of 1 to 15 years, which may include the option to extend the lease when it is reasonably certain for the Company to exercise that option. Operating lease right-of-use (“ROU”) assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company uses its incremental collateralized borrowing rate to determine the present value of lease payments. Short-term leases and leases with variable lease costs are immaterial and the Company has one sublease arrangement. Sublease income was $856 thousand and $826 thousand for the three months ended September 30, 2025, and 2024, respectively, and $2.5 million for the nine months ended September 30, 2025, and 2024, respectively. As of September 30, 2025, operating lease ROU assets and lease liabilities were approximately $27.6 million. ROU assets and lease liabilities were classified as other assets and other liabilities, respectively.

As of September 30, 2025, the weighted average of remaining lease terms of the Company’s operating leases was 5.8 years. The weighted average discount rate used to determine the lease liabilities as of September 30, 2025, for the Company’s operating leases was 3.1%. Cash paid for the Company’s operating leases was $2.9 million for each of the three months ended September 30, 2025, and 2024, respectively, and was $8.7 million for each of the nine months ended September 30, 2025, and 2024, respectively. During the nine months ended September 30, 2025, the Company obtained $690 thousand in ROU assets in exchange for lease liabilities for two operating leases.

The Company’s future undiscounted cash payments associated with its operating leases as of September 30, 2025, are summarized below (dollars in thousands).


Remaining 2025	$	2,603
2026		9,507
2027		6,505
2028		3,529
2029		2,179
2030		1,715
Thereafter		8,827
Total undiscounted lease payments	$	34,865

Off-Balance Sheet Items

In the normal course of business, the Company enters into various transactions that, in accordance with GAAP, are not included in its consolidated balance sheets. The Company enters into these transactions to meet the financing needs of its customers. These transactions include commitments to extend credit and standby letters of credit, which involve, to varying degrees, elements of credit risk and interest rate risk in excess of the amounts recognized in the consolidated balance sheets.

The Company’s commitments associated with outstanding standby letters of credit, unused capacity on Warehouse Purchase Program loans and commitments to extend credit expiring by period as of September 30, 2025, are summarized below. Since commitments associated with letters of credit, unused capacity on Warehouse Purchase Program loans and commitments to extend credit may expire unused, the amounts shown may not necessarily reflect the actual future cash funding requirements.


	1 year or less		More than 1 year but less than 3 years		3 years or more but less than 5 years		5 years or more		Total
	(Dollars in thousands)
Standby letters of credit	$	61,923	$	15,787	$	1,371	$	26	$	79,107
Unused capacity on Warehouse Purchase Program loans		800,823		—		—		—		800,823
Commitments to extend credit		1,523,888		973,378		178,537		1,060,599		3,736,402
Total	$	2,386,634	$	989,165	$	179,908	$	1,060,625	$	4,616,332

The Company records an allowance for credit losses on off-balance sheet credit exposure that is adjusted through an entry to provision for credit losses on the Company’s consolidated statement of income. At September 30, 2025, and December 31, 2024, this allowance, reported as a separate line item on the Company’s consolidated balance sheet, totaled $37.6 million.