| Loans and Allowance for Credit Losses on Loans |
Loans and Allowance for Credit Losses on Loans Loans are summarized by portfolio segment as follows: | | | | | | | | | | | | | | | (in thousands) | December 31, 2025 | | December 31, 2024 | | | | | | Loans held for investment(1): | | | | | Commercial | $ | 12,252,805 | | | $ | 11,145,591 | | | Mortgage finance | 6,064,019 | | | 5,215,574 | | | Commercial real estate | 5,395,753 | | | 5,616,282 | | | Consumer | 434,425 | | | 565,376 | | | | | | | | | | | | | | | Gross loans held for investment | 24,147,002 | | | 22,542,823 | | | Unearned income (net of direct origination costs) | (106,800) | | | (92,757) | | | Total loans held for investment | 24,040,202 | | | 22,450,066 | | | Allowance for credit losses on loans | (270,557) | | | (271,709) | | | Total loans held for investment, net | $ | 23,769,645 | | | $ | 22,178,357 | | | Loans held for sale: | | | | | Mortgage loans, at fair value | $ | — | | | $ | — | | | Non-mortgage loans, at lower of cost or fair value | 4,361 | | | — | | | Total loans held for sale | $ | 4,361 | | | $ | — | |
(1) Excludes accrued interest receivable of $107.3 million and $107.3 million at December 31, 2025 and December 31, 2024, respectively, that is recorded in accrued interest receivable and other assets on the consolidated balance sheets. The following tables summarize gross loans held for investment by year of origination and internally assigned credit grades: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (in thousands) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020
and prior | Revolving lines of credit | Revolving lines of credit converted to term loans | Total | | December 31, 2025 | | | | | | | | | | | Commercial | | | | | | | | | | | (1-7) Pass | $ | 2,091,840 | | $ | 1,179,067 | | $ | 679,840 | | $ | 679,947 | | $ | 109,856 | | $ | 145,550 | | $ | 6,977,639 | | $ | 9,359 | | $ | 11,873,098 | | | (8) Special mention | 7,659 | | 16,204 | | 16,093 | | 42,441 | | 15,346 | | 1,239 | | 39,073 | | — | | 138,055 | | | (9) Substandard - accruing | 25,513 | | 8,824 | | 44,506 | | — | | 34,641 | | 4,192 | | 27,830 | | — | | 145,506 | | | (9+) Non-accrual | 11,293 | | — | | 2,959 | | 36,390 | | — | | 11,639 | | 33,865 | | — | | 96,146 | | | Total commercial | $ | 2,136,305 | | $ | 1,204,095 | | $ | 743,398 | | $ | 758,778 | | $ | 159,843 | | $ | 162,620 | | $ | 7,078,407 | | $ | 9,359 | | $ | 12,252,805 | | | Mortgage finance | | | | | | | | | | | (1-7) Pass | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 6,064,019 | | $ | — | | $ | 6,064,019 | | | (8) Special mention | — | | — | | — | | — | | — | | — | | — | | — | | — | | | (9) Substandard - accruing | — | | — | | — | | — | | — | | — | | — | | — | | — | | | (9+) Non-accrual | — | | — | | — | | — | | — | | — | | — | | — | | — | | | Total mortgage finance | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 6,064,019 | | $ | — | | $ | 6,064,019 | | | Commercial real estate | | | | | | | | | | | (1-7) Pass | $ | 783,669 | | $ | 567,849 | | $ | 944,903 | | $ | 1,548,624 | | $ | 425,325 | | $ | 610,386 | | $ | 254,480 | | $ | 5,305 | | $ | 5,140,541 | | | (8) Special mention | 743 | | 45,137 | | 728 | | 90,752 | | 61,132 | | 1,530 | | 7,800 | | 766 | | 208,588 | | | (9) Substandard - accruing | 10 | | 25,880 | | — | | — | | — | | — | | — | | — | | 25,890 | | | (9+) Non-accrual | — | | — | | — | | 20,734 | | — | | — | | — | | — | | 20,734 | | | Total commercial real estate | $ | 784,422 | | $ | 638,866 | | $ | 945,631 | | $ | 1,660,110 | | $ | 486,457 | | $ | 611,916 | | $ | 262,280 | | $ | 6,071 | | $ | 5,395,753 | | | Consumer | | | | | | | | | | | (1-7) Pass | $ | 36,558 | | $ | 37,907 | | $ | 28,223 | | $ | 50,840 | | $ | 73,032 | | $ | 113,607 | | $ | 94,258 | | $ | — | | $ | 434,425 | | | (8) Special mention | — | | — | | — | | — | | — | | — | | — | | — | | — | | | (9) Substandard - accruing | — | | — | | — | | — | | — | | — | | — | | — | | — | | | (9+) Non-accrual | — | | — | | — | | — | | — | | — | | — | | — | | — | | | Total consumer | $ | 36,558 | | $ | 37,907 | | $ | 28,223 | | $ | 50,840 | | $ | 73,032 | | $ | 113,607 | | $ | 94,258 | | $ | — | | $ | 434,425 | | | Total | $ | 2,957,285 | | $ | 1,880,868 | | $ | 1,717,252 | | $ | 2,469,728 | | $ | 719,332 | | $ | 888,143 | | $ | 13,498,964 | | $ | 15,430 | | $ | 24,147,002 | | | Gross charge-offs | $ | 11,233 | | $ | 704 | | $ | 4,234 | | $ | 8,958 | | $ | 28 | | $ | 2,011 | | $ | 25,715 | | $ | — | | $ | 52,883 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (in thousands) | 2024 | 2023 | 2022 | 2021 | 2020 | 2019
and prior | Revolving lines of credit | Revolving lines of credit converted to term loans | Total | | December 31, 2024 | | | | | | | | | | | Commercial | | | | | | | | | | | (1-7) Pass | $ | 1,612,695 | | $ | 1,156,414 | | $ | 1,256,539 | | $ | 307,590 | | $ | 76,821 | | $ | 169,974 | | $ | 6,027,177 | | $ | 12,040 | | $ | 10,619,250 | | | (8) Special mention | 22,953 | | 28,354 | | 134,092 | | 21,626 | | 30 | | 6,369 | | 91,423 | | — | | 304,847 | | | (9) Substandard - accruing | 623 | | 44,901 | | 51,536 | | 7,855 | | 301 | | 3,309 | | 37,405 | | — | | 145,930 | | | (9+) Non-accrual | — | | 9,220 | | 8,057 | | — | | 360 | | 23,708 | | 34,219 | | — | | 75,564 | | | Total commercial | $ | 1,636,271 | | $ | 1,238,889 | | $ | 1,450,224 | | $ | 337,071 | | $ | 77,512 | | $ | 203,360 | | $ | 6,190,224 | | $ | 12,040 | | $ | 11,145,591 | | | Mortgage finance | | | | | | | | | | | (1-7) Pass | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 5,215,574 | | $ | — | | $ | 5,215,574 | | | (8) Special mention | — | | — | | — | | — | | — | | — | | — | | — | | — | | | (9) Substandard - accruing | — | | — | | — | | — | | — | | — | | — | | — | | — | | | (9+) Non-accrual | — | | — | | — | | — | | — | | — | | — | | — | | — | | | Total mortgage finance | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 5,215,574 | | $ | — | | $ | 5,215,574 | | | Commercial real estate | | | | | | | | | | | (1-7) Pass | $ | 599,301 | | $ | 889,603 | | $ | 1,843,706 | | $ | 885,913 | | $ | 216,077 | | $ | 704,288 | | $ | 273,663 | | $ | 18,085 | | $ | 5,430,636 | | | (8) Special mention | 25,532 | | 4,353 | | 70,161 | | 15,831 | | 299 | | 13,731 | | — | | 872 | | 130,779 | | | (9) Substandard - accruing | — | | — | | — | | — | | — | | 20,230 | | — | | — | | 20,230 | | | (9+) Non-accrual | 85 | | — | | 20,637 | | — | | — | | 13,915 | | — | | — | | 34,637 | | | Total commercial real estate | $ | 624,918 | | $ | 893,956 | | $ | 1,934,504 | | $ | 901,744 | | $ | 216,376 | | $ | 752,164 | | $ | 273,663 | | $ | 18,957 | | $ | 5,616,282 | | | Consumer | | | | | | | | | | | (1-7) Pass | $ | 44,352 | | $ | 28,289 | | $ | 54,148 | | $ | 75,924 | | $ | 40,667 | | $ | 99,471 | | $ | 220,561 | | $ | — | | $ | 563,412 | | | (8) Special mention | — | | — | | — | | — | | — | | — | | — | | — | | — | | | (9) Substandard - accruing | — | | — | | — | | — | | — | | — | | 1,000 | | — | | 1,000 | | | (9+) Non-accrual | — | | — | | — | | — | | — | | 964 | | — | | — | | 964 | | | Total Consumer | $ | 44,352 | | $ | 28,289 | | $ | 54,148 | | $ | 75,924 | | $ | 40,667 | | $ | 100,435 | | $ | 221,561 | | $ | — | | $ | 565,376 | | | Total | $ | 2,305,541 | | $ | 2,161,134 | | $ | 3,438,876 | | $ | 1,314,739 | | $ | 334,555 | | $ | 1,055,959 | | $ | 11,901,022 | | $ | 30,997 | | $ | 22,542,823 | | | Gross charge-offs | $ | 994 | | $ | 7,543 | | $ | 550 | | $ | 4,037 | | $ | 537 | | $ | 8,784 | | $ | 23,566 | | $ | 44 | | $ | 46,055 | |
The following table details activity in the allowance for credit losses on loans. Allocation of a portion of the allowance to one category does not preclude its availability to absorb losses in other categories. | | | | | | | | | | | | | | | | | | | | (in thousands) | Commercial | Mortgage
Finance | Commercial Real Estate | Consumer | Total | | Year Ended December 31, 2025 | | | | | | | | Beginning balance | $ | 198,423 | | $ | 2,755 | | $ | 68,825 | | $ | 1,706 | | $ | 271,709 | | | | | | | | | | | Provision for credit losses on loans | 49,813 | | 3,466 | | (7,224) | | 22 | | 46,077 | | | | Charge-offs | 51,428 | | — | | 1,455 | | — | | 52,883 | | | | Recoveries | 5,221 | | — | | 413 | | 20 | | 5,654 | | | | Net charge-offs (recoveries) | 46,207 | | — | | 1,042 | | (20) | | 47,229 | | | | Ending balance | $ | 202,029 | | $ | 6,221 | | $ | 60,559 | | $ | 1,748 | | $ | 270,557 | | | Year Ended December 31, 2024 | | | | | | | | Beginning balance | $ | 171,437 | | $ | 4,173 | | $ | 71,829 | | $ | 2,534 | | $ | 249,973 | | | | Allowance established for acquired PCD loans | 2,579 | | — | | — | | — | | 2,579 | | | | Provision for credit losses on loans | 57,019 | | (1,418) | | 5,242 | | (813) | | 60,030 | | | | Charge-offs | 37,761 | | — | | 8,264 | | 30 | | 46,055 | | | | Recoveries | 5,149 | | — | | 18 | | 15 | | 5,182 | | | | Net charge-offs (recoveries) | 32,612 | | — | | 8,246 | | 15 | | 40,873 | | | | Ending balance | $ | 198,423 | | $ | 2,755 | | $ | 68,825 | | $ | 1,706 | | $ | 271,709 | | |
The Company recorded a $46.1 million provision for credit losses on loans for the year ended December 31, 2025, compared to $60.0 million for the same period of 2024. The $46.1 million provision for credit losses on loans resulted primarily from an increase in total loans held for investment and $47.2 million in net charge-offs recorded during the year ended December 31, 2025, partially offset by a decline in criticized loans. Criticized loans totaled $634.9 million at December 31, 2025, compared to $714.0 million at December 31, 2024. A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. At December 31, 2025, the Company had $10.9 million in collateral-dependent commercial loans, collateralized by business assets, and $20.7 million in collateral-dependent commercial real estate loans, collateralized by real estate. The table below provides an age analysis of gross loans held for investment: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (in thousands) | 30-59 Days
Past Due | | 60-89 Days
Past Due | | 90 Days or More Past Due | | Total Past
Due | | Non-accrual(1) | | Current | | Total | | Non-accrual With No Allowance | | December 31, 2025 | | | | | | | | | | | | | | | | | Commercial | $ | 7,041 | | | $ | 24,443 | | | $ | 19,353 | | | $ | 50,837 | | | $ | 96,146 | | | $ | 12,105,822 | | | $ | 12,252,805 | | | $ | 4,754 | | | Mortgage finance | — | | | — | | | — | | | — | | | — | | | 6,064,019 | | | 6,064,019 | | | — | | | Commercial real estate | 25,824 | | | — | | | — | | | 25,824 | | | 20,734 | | | 5,349,195 | | | 5,395,753 | | | 1,534 | | | Consumer | 1,304 | | | — | | | — | | | 1,304 | | | — | | | 433,121 | | | 434,425 | | | — | | | Total | $ | 34,169 | | | $ | 24,443 | | | $ | 19,353 | | | $ | 77,965 | | | $ | 116,880 | | | $ | 23,952,157 | | | $ | 24,147,002 | | | $ | 6,288 | |
(1)As of December 31, 2025, $470,000 of non-accrual loans were earning interest income on a cash basis compared to $360,000 as of December 31, 2024. Additionally, $661,000 of interest income was recognized on non-accrual loans for the year ended December 31, 2025 compared to $287,000 for the same period in 2024. Accrued interest of $2.4 million and $1.4 million was reversed during the year ended December 31, 2025 and December 31, 2024, respectively. Modifications to Borrowers Experiencing Financial Difficulty The table below details gross loans held for investment made to borrowers experiencing financial difficulty that were modified during the year ended December 31, 2025 and December 31, 2024, by type of modification granted and the financial effect of those modifications: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Financial Statement Impact | | ($ in thousands) | | Payment
Deferral | Term
Extension | Payment
Deferral
and Term
Extension | | Total | Percentage of Loans Held for Investment | | Interest Rate Reduction | Term Extension (in months) | Payment Deferrals | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2025 | | | | | | | | | | | | | Commercial | | $ | 44,478 | | $ | 22,300 | | $ | 23,126 | | | $ | 89,904 | | 0.37 | % | | —% | 3 to 26 | $ | 15,936 | | | | | | | | | | | | | | | Commercial real estate | | 18,163 | | — | | 17,505 | | | 35,668 | | 0.15 | % | | —% | 6 | 1,106 | | | | | | | | | | | | | | | Total | | $ | 62,641 | | $ | 22,300 | | $ | 40,631 | | | $ | 125,572 | | 0.52 | % | | | | | | Year Ended December 31, 2024 | | | | | | | | | | | | | Commercial | | $ | 58,346 | | $ | 10,136 | | $ | 9,931 | | | $ | 78,413 | | 0.35 | % | | —% | 3 to 13 | $ | 6,103 | | | | | | | | | | | | | | | Commercial real estate | | 18,488 | | 15,831 | | 13,915 | | | 48,234 | | 0.21 | % | | —% | 3 to 4 | $ | 960 | | | | | | | | | | | | | | | Total | | $ | 76,834 | | $ | 25,967 | | $ | 23,846 | | | $ | 126,647 | | 0.56 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The table below details gross loans held for investment that experienced a default during the periods presented subsequent to being granted a modification in the prior twelve months. Default is defined as movement to nonperforming status, foreclosure or charge-off, whichever occurs first. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (in thousands) | | | | Payment
Deferral | | Term
Extension | | Payment Deferral and Term Extension | | | | Total | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2025 | | | | | | | | | | | | | | Commercial | | | | $ | 26,482 | | | $ | 10,369 | | | $ | 23,940 | | | | | $ | 60,791 | | | | | | | | | | | | | | | | Commercial real estate | | | | — | | | — | | | 13,500 | | | | | 13,500 | | | | | | | | | | | | | | | | Total | | | | $ | 26,482 | | | $ | 10,369 | | | $ | 37,440 | | | | | $ | 74,291 | | | Year Ended December 31, 2024 | | | | | | | | | | | | | | Commercial | | | | $ | 6,031 | | | $ | — | | | $ | 1,756 | | | | | $ | 7,787 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total | | | | $ | 6,031 | | | $ | — | | | $ | 1,756 | | | | | $ | 7,787 | |
The table below provides an age analysis of gross loans held for investment as of December 31, 2025 and December 31, 2024 made to borrowers experiencing financial difficulty that were modified in the prior twelve months: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (in thousands) | | 30-89 Days
Past Due | | 90+ Days
Past Due | | Non-Accrual | | Current | | Total | | December 31, 2025 | | | | | | | | | | | | Commercial | | $ | — | | | $ | — | | | $ | 37,486 | | | $ | 14,679 | | | $ | 52,165 | | | | | | | | | | | | | Commercial real estate | | — | | | — | | | 17,190 | | | — | | | 17,190 | | | | | | | | | | | | | | Total | | $ | — | | | $ | — | | | $ | 54,676 | | | $ | 14,679 | | | $ | 69,355 | | | December 31, 2024 | | | | | | | | | | | | Commercial | | $ | 7,350 | | | $ | — | | | $ | 18,761 | | | $ | 29,598 | | | $ | 55,709 | | | | | | | | | | | | | Commercial real estate | | — | | | — | | | 32,404 | | | 15,830 | | | 48,234 | | | | | | | | | | | | | | Total | | $ | 7,350 | | | $ | — | | | $ | 51,165 | | | $ | 45,428 | | | $ | 103,943 | |
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