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Allowance for Credit Losses | 3 Months Ended
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Mar. 31, 2026
Receivables [Abstract] |
Allowance for Credit Losses | Allowance for Credit Losses (In Thousands) Allowance for Credit Losses on Loans As of March 31, 2026 and December 31, 2025, the Company had accrued interest receivable for loans of $68,886 and $54,395, respectively, which is recorded in the “Other assets” line item on the Consolidated Balance Sheets. The following tables provide a roll-forward of the allowance for credit losses by loan category and nonaccrual loans with no allowance for credit losses for the periods presented:
| Commercial and industrial |  | Construction and land development |  | Real Estate - 1-4 Family Mortgage |  | Commercial real estate - owner occupied |  | Commercial real estate - non owner occupied |  | Consumer |  | Total
Three Months Ended March 31, 2026 |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance | $ | 57,831 |  |  | $ | 31,359 |  |  | $ | 61,249 |  |  | $ | 38,961 |  |  | $ | 99,605 |  |  | $ | 4,950 |  |  | $ | 293,955 |
Charge-offs | (1,070) |  |  | (1) |  |  | (525) |  |  | (1,136) |  |  | (198) |  |  | (330) |  |  | (3,260) |
Recoveries | 150 |  |  | — |  |  | 26 |  |  | 676 |  |  | 63 |  |  | 28 |  |  | 943 |
Net charge-offs | (920) |  |  | (1) |  |  | (499) |  |  | (460) |  |  | (135) |  |  | (302) |  |  | (2,317) |
Provision for (recovery of) credit losses on loans | 8,903 |  |  | 5,611 |  |  | 5,903 |  |  | (1,060) |  |  | (15,090) |  |  | (43) |  |  | 4,224 |
Ending balance | $ | 65,814 |  |  | $ | 36,969 |  |  | $ | 66,653 |  |  | $ | 37,441 |  |  | $ | 84,380 |  |  | $ | 4,605 |  |  | $ | 295,862 |
Nonaccruing loans with no allowance for credit losses | $ | 23,394 |  |  | $ | 5,146 |  |  | $ | 2,473 |  |  | $ | 8,805 |  |  | $ | 28,598 |  |  | $ | — |  |  | $ | 68,416 |
| Commercial and industrial |  | Construction and land development |  | Real Estate - 1-4 Family Mortgage |  | Commercial real estate - owner occupied |  | Commercial real estate - non owner occupied |  | Consumer |  | Total
Three Months Ended March 31, 2025 |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance | $ | 41,864 |  |  | $ | 19,200 |  |  | $ | 45,498 |  |  | $ | 16,993 |  |  | $ | 71,664 |  |  | $ | 6,537 |  |  | $ | 201,756 |
Charge-offs | (94) |  |  | — |  |  | (309) |  |  | (461) |  |  | — |  |  | (265) |  |  | (1,129) |
Recoveries | 967 |  |  | — |  |  | 33 |  |  | 4 |  |  | 2 |  |  | 248 |  |  | 1,254 |
Net recoveries (charge-offs) | 873 |  |  | — |  |  | (276) |  |  | (457) |  |  | 2 |  |  | (17) |  |  | 125 |
(Recovery of) provision for credit losses on loans | (853) |  |  | 1,645 |  |  | 2,879 |  |  | 1,290 |  |  | (2,885) |  |  | (26) |  |  | 2,050 |
Ending balance | $ | 41,884 |  |  | $ | 20,845 |  |  | $ | 48,101 |  |  | $ | 17,826 |  |  | $ | 68,781 |  |  | $ | 6,494 |  |  | $ | 203,931 |
Nonaccruing loans with no allowance for credit losses | $ | 5,134 |  |  | $ | 711 |  |  | $ | 5,384 |  |  | $ | 6,418 |  |  | $ | 3,914 |  |  | $ | — |  |  | $ | 21,561 |
The Company recorded a provision for credit losses on loans of $4,224 during the first quarter of 2026, as compared to a provision for credit losses on loans of $2,050 recorded in the first quarter of 2025. The increase in the allowance for credit losses in the first quarter of 2026 was primarily driven by an increase in non-performing loans, changes in the macroeconomic environment and qualitative factors. These factors were partially moderated by the reduction in the loan portfolio. The provision increased in select residential related pools due to the risk of potential stagflation and value declines. The Company’s allowance for credit losses model considers economic projections, primarily the national unemployment rate and GDP, over a reasonable and supportable period of two years, historical loss data, and environmental factors. The allowance for credit losses under CECL is calculated utilizing the probability of default/ loss given default approach for most commercial mortgage related pools, while the average historical life-of-loan loss rate cohort approach is used for the remaining pools. Collateral Dependent Loans The following tables present collateral dependent loans by loan portfolio segment and by type of collateral along with the related allowance for credit losses:
| Collateral Type |  |  |
March 31, 2026 | Real Estate | Other | Total |  | ACL
Commercial and industrial | $ | — |  | $ | 60,487 |  | $ | 60,487 |  |  | $ | 11,952 |
Construction and land development |  |  |  |  |
Residential | 1,991 |  | — |  | 1,991 |  |  | — |
Other | 9,046 |  | — |  | 9,046 |  |  | 1,887 |
Total construction and land development | 11,037 |  | — |  | 11,037 |  |  | 1,887 |
Real estate - 1-4 family mortgage |  |  |  |  |
First lien | 3,074 |  | — |  | 3,074 |  |  | 134 |
Junior lien | — |  | — |  | — |  |  | — |
Home equity | 500 |  | — |  | 500 |  |  | — |
Total real estate – 1-4 family mortgage | 3,574 |  | — |  | 3,574 |  |  | 134 |
Commercial real estate - owner occupied | 20,935 |  | — |  | 20,935 |  |  | 3,689 |
Commercial real estate - non-owner occupied |  |  |  |  |
Multi family | — |  | — |  | — |  |  | — |
Other | 48,118 |  | — |  | 48,118 |  |  | 6,365 |
Total commercial real estate - non-owner occupied | 48,118 |  | — |  | 48,118 |  |  | 6,365 |
Consumer | — |  | — |  | — |  |  | — |
Loans, net of unearned income | $ | 83,664 |  | $ | 60,487 |  | $ | 144,151 |  |  | $ | 24,027 |
| Collateral Type |  |  |
December 31, 2025 | Real Estate | Other | Total |  | ACL
Commercial and industrial | $ | — |  | $ | 46,860 |  | $ | 46,860 |  |  | $ | 4,502 |
Construction and land development |  |  |  |  |
Residential | 2,033 |  | — |  | 2,033 |  |  | — |
Other | 10,575 |  | — |  | 10,575 |  |  | 1,887 |
Total construction and land development | 12,608 |  | — |  | 12,608 |  |  | 1,887 |
Real estate - 1-4 family mortgage |  |  |  |  |
First lien | 3,263 |  | — |  | 3,263 |  |  | 116 |
Junior lien | — |  | — |  | — |  |  | — |
Home equity | 500 |  | — |  | 500 |  |  | — |
Total real estate – 1-4 family mortgage | 3,763 |  | — |  | 3,763 |  |  | 116 |
Commercial real estate - owner occupied | 21,165 |  | — |  | 21,165 |  |  | 3,661 |
Commercial real estate - non-owner occupied |  |  |  |  |
Multi family | — |  | — |  | — |  |  | — |
Other | 48,049 |  | — |  | 48,049 |  |  | 10,999 |
Total commercial real estate - non-owner occupied | 48,049 |  | — |  | 48,049 |  |  | 10,999 |
Consumer | — |  | 270 |  | 270 |  |  | 270 |
Loans, net of unearned income | $ | 85,585 |  | $ | 47,130 |  | $ | 132,715 |  |  | $ | 21,435 |
The increase in collateral dependent loans since December 31, 2025 is primarily due to the migration of seven relationships totaling $40,534, which was offset by the resolution or credit improvement of certain relationships of approximately $30,862. Allowance for Credit Losses on Unfunded Loan Commitments The following table provides a roll-forward of the allowance for credit losses on unfunded loan commitments for the periods presented.
Three months ended March 31, | 2026 |  | 2025
Allowance for credit losses on unfunded loan commitments: |  |  |
Beginning balance | $ | 29,827 |  |  | $ | 14,943 |
Provision for credit losses on unfunded loan commitments | 3,856 |  |  | 2,700 |
Ending balance | $ | 33,683 |  |  | $ | 17,643 |
The provision for credit losses on unfunded commitments in the first quarter of 2026 was primarily driven by growth in the balance of unfunded loan commitments in the commercial and residential construction related pools.

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