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LOANS AND CREDIT QUALITY (Tables)
3 Months Ended
Mar. 31, 2026
Receivables [Abstract]  
Schedule of Loans Held for Investment
The loan receivables portfolio consisted of the following as of the dates indicated:
(in thousands)March 31, 2026December 31, 2025
Commercial and industrial$460,081 $482,170 
Commercial real estate
Multifamily5,291,597 5,355,252 
Non-owner occupied1,711,611 1,740,277 
Owner occupied586,698 689,079 
Construction and land development399,546 493,992 
Residential real estate4,017,120 3,970,803 
Auto639,825 791,012 
Other consumer745,731 654,351 
Total loan receivables before allowance for credit losses
13,852,209 14,176,936 
Allowance for credit losses on loans (156,796)(153,319)
Net loan receivables$13,695,413 $14,023,617 
Activity in Allowance for Credit Losses
The following tables present the activity in the allowance for credit losses on loans by portfolio segment:
(in thousands)Commercial and IndustrialCommercial Real EstateResidential Real EstateAutoOther ConsumerTotal
Quarter Ended March 31, 2026
Allowance for credit losses on loans
Beginning balance$8,417 $114,326 $13,294 $15,003 $2,279 $153,319 
Provision (reversal of provision) for credit losses408 6,321 (26)565 325 7,593 
Loans charged off(131)— (1)(6,420)(653)(7,205)
Recoveries166 111 354 2,298 160 3,089 
Ending balance$8,860 $120,758 $13,621 $11,446 $2,111 $156,796 
(in thousands)Commercial and IndustrialCommercial Real EstateResidential Real EstateAutoOther ConsumerTotal
Quarter Ended March 31, 2025
Allowance for credit losses on loans
Beginning balance$4,869 $35,097 $4,656 $41,282 $2,654 $88,558 
Provision (reversal of provision) for credit losses(458)(102)107 (3,629)330 (3,752)
Loans charged off(117)— — (11,506)(594)(12,217)
Recoveries— — 2,788 135 2,926 
Ending balance$4,297 $34,995 $4,763 $28,935 $2,525 $75,515 
In addition to the ACL for LHFI, the Company maintains a separate allowance for unfunded loan commitments, which is included in interest payable and other liabilities on the consolidated balance sheets. The following table presents changes in the allowance for credit losses on unfunded lending commitments:
Quarter Ended March 31,
(in thousands)20262025
Allowance for credit losses on unfunded lending commitments
Beginning balance$7,115 $4,366 
Provision (reversal of provision) for credit losses174 94 
Ending balance
$7,289 $4,460 
Schedule of Loans on Nonaccrual with no Related Allowance for Credit Loss
The following table presents the amortized cost of nonaccrual loans and loans past due 90 days or more and still accruing by class of loans as of March 31, 2026 and December 31, 2025:
March 31, 2026
(in thousands)Nonaccrual With No Allowance for Credit LossTotal NonaccrualLoans Past Due 90 Days or More Still Accruing
Commercial and industrial$5,490 $11,698 $— 
Commercial real estate
Multifamily— — — 
Non-owner occupied5,438 17,024 — 
Owner occupied722 722 — 
Construction and land development428 3,225 — 
Residential real estate4,397 8,177 4,098 
Auto— 3,529 — 
Other consumer— — 
Total
$16,475 $44,379 $4,098 
December 31, 2025
(in thousands)Nonaccrual With No Allowance for Credit LossTotal NonaccrualLoans Past Due 90 Days or More Still Accruing
Commercial and industrial$5,310 $11,196 $— 
Commercial real estate
Multifamily3,387 3,387 — 
Non-owner occupied953 12,539 — 
Owner occupied1,644 1,870 — 
Construction and land development140 2,962 — 
Residential real estate3,766 6,765 3,943 
Auto— 4,143 — 
Other consumer— — 
Total
$15,200 $42,863 $3,943 
Schedule of Collateral Dependent Loans
The following tables present the amortized cost of collateral-dependent loans by class and collateral type as of March 31, 2026 and December 31, 2025:
March 31, 2026
(in thousands)AutoEquipmentLandMultifamilyRetail BuildingSingle Family ResidentialOther non-real estateTotal Loans
Commercial and industrial$— $5,001 $— $3,790 $958 $373 $— $10,122 
Commercial real estate
Multifamily— — — 14,493 — — — 14,493 
Non-owner occupied— — — — 17,024 — — 17,024 
Owner occupied— — — — 722 — — 722 
Construction and land development— — 3,225 — — — — 3,225 
Residential real estate— — — — — 4,397 — 4,397 
Total
$— $5,001 $3,225 $18,283 $18,704 $4,770 $— $49,983 
December 31, 2025
(in thousands)AutoEquipmentLandMultifamilyRetail BuildingSingle Family ResidentialOther non-real estateTotal Loans
Commercial and industrial$— $— $— $— $3,819 $— $4,674 $8,493 
Commercial real estate
Multifamily— — — 17,869 — — — 17,869 
Non-owner occupied— — — — 12,539 — — 12,539 
Owner occupied— — — — 742 — 1,128 1,870 
Construction and land development— — 2,962 — — — — 2,962 
Residential real estate— — — 157 — 4,121 — 4,278 
Total
$— $— $2,962 $18,026 $17,100 $4,121 $5,802 $48,011 
Schedule of Loans Past Due
The following tables present the aging of the amortized cost in past due loans as of March 31, 2026 and December 31, 2025 by class of loans:
March 31, 2026
(in thousands)30-59 Days Past Due60-89 Days Past DueGreater than 89 Days Past DueTotal Past DueLoans Not Past DueTotal
Loans
Commercial and industrial$1,861 $1,011 $8,490 $11,362 $448,719$460,081
Commercial real estate
Multifamily— — — — 5,291,5975,291,597
Non-owner occupied— — 11,586 11,586 1,700,0251,711,611
Owner occupied— — 272 272 586,426586,698
Construction and land development— — 3,225 3,225 396,321399,546
Residential real estate13,955 2,828 7,459 24,242 3,992,8784,017,120
Auto19,122 4,356 2,412 25,890 613,935639,825
Other consumer271 152 426 745,305745,731
Total$35,209 $8,347 $33,447 $77,003 $13,775,206 $13,852,209 
December 31, 2025
(in thousands)30-59 Days Past Due60-89 Days Past DueGreater than 89 Days Past DueTotal Past DueLoans Not Past DueTotal
Loans
Commercial and industrial$3,277 $1,066 $8,024 $12,367 $469,803$482,170 
Commercial real estate
Multifamily— — 1,614 1,614 5,353,6385,355,252 
Non-owner occupied50 — 11,586 11,636 1,728,6411,740,277 
Owner occupied— 1,349 226 1,575 687,504689,079 
Construction and land development— — 2,962 2,962 491,030493,992 
Residential real estate14,274 4,944 7,187 26,405 3,944,3983,970,803 
Auto25,984 7,078 3,086 36,148 754,864791,012 
Other consumer288 149 438 653,913654,351 
Total$43,873 $14,586 $34,686 $93,145 $14,083,791 $14,176,936 
Schedule of Loan Modifications
The following tables present the amortized cost of loans at March 31, 2026 and 2025 that were both experiencing financial difficulty and modified during the quarter ended March 31, 2026 and 2025, by class and by type of modification. The percentage of the amortized cost of loans that were modified to borrowers in financial distress as compared to the amortized cost of each class of financing receivable is also presented below.
Quarter Ended March 31, 2026
(in thousands)Principal ForgivenessPayment DelayTerm ExtensionInterest Rate ReductionCombined Term Extension and Principal ForgivenessCombined Term Extension and Interest Rate ReductionCombined Payment Delay and Term ExtensionTotal Class of Financing Receivable
Commercial and industrial
$— $— $14 $— $— $— $5,677 1.24 %
Commercial real estate
Construction and land development— — — — — — 2,797 0.70 %
Residential real estate— 242 — — — — 2,154 0.06 %
Total
$— $242 $14 $— $— $— $10,628 0.08 %
Quarter Ended March 31, 2025
(in thousands)Principal ForgivenessPayment DelayTerm ExtensionInterest Rate ReductionCombined Term Extension and Principal ForgivenessCombined Term Extension and Interest Rate ReductionCombined Payment Delay and Term ExtensionTotal Class of Financing Receivable
Commercial and industrial
$— $— $117 $— $— $— $— 0.03 %
Total
$— $— $117 $— $— $— $— 0.00 %
The following tables present the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the quarter ended March 31, 2026 and 2025:
Quarter Ended March 31, 2026
(dollars in thousands)Principal ForgivenessWeighted-Average Payment Delay <months>Weighted-Average Interest Rate ReductionWeighted-Average Term Extension <months>
Commercial and industrial$— 27— %27
Commercial real estate
Construction and land development— 18— %18
Residential real estate— 58— %55
Total$— 32— %30
Quarter Ended March 31, 2025
(dollars in thousands)Principal ForgivenessWeighted-Average Payment DelayWeighted-Average Interest Rate ReductionWeighted-Average Term Extension <months>
Commercial and industrial$— — %60
Financing Receivable, Modified, Past Due
For loan modifications to borrowers experiencing financial difficulty for the quarter ended March 31, 2026 and 2025, the following tables present the payment status of loans that were modified in the last 12 months, with related amortized cost balances, as of the dates indicated:
Payment Status (Amortized Cost)
March 31, 2026
(in thousands)Current30-59 Days Past Due60-89 Days Past DueGreater than 89 Days Past DueTotal
Commercial and industrial$1,493 $— $— $4,198 $5,691 
Commercial real estate
Construction and land development— — — 2,797 2,797 
Residential real estate1,240 405 — 751 2,396 
Total$2,733 $405 $— $7,746 $10,884 
Payment Status (Amortized Cost)
March 31, 2025
(in thousands)Current30-59 Days Past Due60-89 Days Past DueGreater than 89 Days Past DueTotal
Commercial and industrial$117 $— $— $— $117 
Schedule of Loan Modifications, Payment Status
The following table presents the amortized cost of loans that had a payment default (e.g., borrower missed a regularly scheduled payment) and were past due for the quarter ended March 31, 2026 and that were modified in the last 12 months:
Quarter Ended March 31, 2026
(in thousands)Payment DelayTerm ExtensionCombined Payment Delay and Term ExtensionTotal
Commercial and industrial$— $— $4,199 $4,199 
Commercial real estate
Construction and land development— — 2,797 2,797 
Residential real estate— — 1,156 1,156 
Total$— $— $8,152 $8,152 
Schedule of Credit Quality Indicators
The following table presents the amortized cost by loan risk category and origination year for commercial and industrial and commercial real estate loan classes at March 31, 2026 and December 31, 2025. In addition, year-to-date charge-offs for 2026 and 2025 are presented by origination year.
(in thousands)20262025202420232022Prior Revolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
March 31, 2026
Commercial and industrial
Risk rating
Pass$3,767 $22,096 $56,294 $51,301 $22,308 $105,591 $157,335 $661 $419,353 
Special mention— — 94 — 450 1,459 — — 2,003 
Substandard— 152 634 74 22,517 11,439 3,893 16 38,725 
Doubtful— — — — — — — — — 
Total$3,767 $22,248 $57,022 $51,375 $45,275 $118,489 $161,228 $677 $460,081 
Year-to-date gross charge-offs$— $— $— $— $— $$125 $— $131 
Commercial real estate - multifamily
Risk rating
Pass$18,046 $59,406 $171,314 $457,394 $2,199,195 $2,179,991 $20,151 $— $5,105,497 
Special mention— — — — 18,312 45,657 — — 63,969 
Substandard— — — 6,561 77,981 37,589 — — 122,131 
Doubtful— — — — — — — — — 
Total$18,046 $59,406 $171,314 $463,955 $2,295,488 $2,263,237 $20,151 $— $5,291,597 
Year-to-date gross charge-offs$— $— $— $— $— $— $— $— $— 
Commercial real estate - non-owner occupied
Risk rating
Pass$— $11,036 $13,692 $32,879 $370,195 $1,149,482 $9,300 $— $1,586,584 
Special mention— — — — — 37,148 — — 37,148 
Substandard— — — — — 87,879 — — 87,879 
Doubtful— — — — — — — — — 
Total$— $11,036 $13,692 $32,879 $370,195 $1,274,509 $9,300 $— $1,711,611 
Year-to-date gross charge-offs$— $— $— $— $— $— $— $— $— 
Commercial real estate - owner occupied
Risk rating
Pass$1,279 $26,298 $12,330 $23,062 $97,984 $357,118 $11,493 $— $529,564 
Special mention— — — — 7,362 34,267 — — 41,629 
Substandard— — — — 8,798 6,707 — — 15,505 
Doubtful— — — — — — — — — 
Total$1,279 $26,298 $12,330 $23,062 $114,144 $398,092 $11,493 $— $586,698 
Year-to-date gross charge-offs$— $— $— $— $— $— $— $— $— 
Commercial real estate - construction and land development
Risk rating
Pass$20,992 $209,571 $86,476 $55,705 $8,724 $14,483 $370 $— $396,321 
Special mention— — — — — — — — — 
Substandard— — — — — 3,225 — — 3,225 
Doubtful— — — — — — — — — 
Total$20,992 $209,571 $86,476 $55,705 $8,724 $17,708 $370 $— $399,546 
Year-to-date gross charge-offs$— $— $— $— $— $— $— $— $— 
(in thousands)
20252024202320222021PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
December 31, 2025
Commercial and industrial
Risk rating
Pass$22,961 $40,427 $52,574 $24,657 $19,914 $78,344 $200,344 $225 $439,446 
Special mention— 104 — 472 162 2,828 — — 3,566 
Substandard64 634 65 23,257 400 14,487 251 — 39,158 
Doubtful— — — — — — — — — 
Total$23,025 $41,165 $52,639 $48,386 $20,476 $95,659 $200,595 $225 $482,170 
Year-to-date gross charge-offs$40 $75 $47 $6,772 $230 $19 $1,215 $— $8,398 
Commercial real estate - multifamily
Risk rating
Pass$59,536 $177,297 $458,411 $2,224,002 $1,177,242 $1,031,448 $18,160 $211 $5,146,307 
Special mention— — — 32,156 22,062 35,772 — — 89,990 
Substandard— — 6,558 68,486 24,403 19,508 — — 118,955 
Doubtful— — — — — — — — — 
Total$59,536 $177,297 $464,969 $2,324,644 $1,223,707 $1,086,728 $18,160 $211 $5,355,252 
Year-to-date gross charge-offs$— $— $— $— $— $— $— $— $— 
Commercial real estate -non-owner occupied
Risk rating
Pass$7,032 $13,753 $31,688 $371,096 $138,150 $1,057,437 $6,659 $257 $1,626,072 
Special mention— — — — — 32,308 — — 32,308 
Substandard— — — — — 81,897 — — 81,897 
Doubtful— — — — — — — — — 
Total$7,032 $13,753 $31,688 $371,096 $138,150 $1,171,642 $6,659 $257 $1,740,277 
Year-to-date gross charge-offs$— $— $— $— $— $428 $— $— $428 
Commercial real estate - owner-occupied
Risk rating
Pass$30,541 $12,420 $27,707 $108,047 $73,141 $371,660 $9,045 $243 $632,804 
Special mention— — — 1,660 6,954 28,003 — — 36,617 
Substandard— — — 8,836 3,752 7,070 — — 19,658 
Doubtful— — — — — — — — — 
Total$30,541 $12,420 $27,707 $118,543 $83,847 $406,733 $9,045 $243 $689,079 
Year-to-date gross charge-offs$— $— $— $— $— $— $— $— $— 
Commercial real estate - construction and land development
Risk rating
Pass$272,783 $128,650 $59,371 $13,377 $3,112 $12,937 $200 $600 $491,030 
Special mention— — — — — — — — — 
Substandard— — — — — 2,962 — — 2,962 
Doubtful— — — — — — — — — 
Total$272,783 $128,650 $59,371 $13,377 $3,112 $15,899 $200 $600 $493,992 
Year-to-date gross charge-offs$— $— $— $— $— $— $— $— $— 
The Company considers the performance of the loan portfolio and its impact on the allowance for credit losses. For residential and consumer loan classes, the Company also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the amortized cost in residential and consumer loans based upon year of origination at March 31, 2026 and December 31, 2025. In addition, year-to-date charge-offs for 2026 and 2025 are presented by origination year.
(in thousands)
20262025202420232022PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
March 31, 2026
Residential real estate
Payment performance
Performing$130,475 $521,652 $145,956 $103,345 $760,796 $1,801,763 $510,414 $30,443 $4,004,844 
Nonperforming— — — 409 745 7,207 3,343 572 12,276 
Total $130,475 $521,652 $145,956 $103,754 $761,541 $1,808,970 $513,757 $31,015 $4,017,120 
Year-to-date gross charge-offs$— $— $— $— $— $$— $— $
Auto
Payment performance
Performing$— $149 $203 $42,327 $392,402 $201,215 $— $— $636,296 
Nonperforming— — — 133 2,309 1,087 — — 3,529 
Total$— $149 $203 $42,460 $394,711 $202,302 $— $— $639,825 
Year-to-date gross charge-offs$— $— $— $283 $3,728 $2,409 $— $— $6,420 
Other consumer
Payment performance
Performing$116,388 $209,287 $166,456 $141,679 $68,528 $39,331 $4,058 $— $745,727 
Nonperforming— — — — — — — 
Total$116,388 $209,287 $166,456 $141,679 $68,528 $39,331 $4,062 $— $745,731 
Year-to-date gross charge-offs$154 $$$150 $— $328 $$— $653 
(in thousands)
20252024202320222021PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal
December 31, 2025
Residential real estate
Payment performance
Performing$552,620 $155,815 $110,989 $767,915 $828,395 $1,041,378 $499,312 $3,671 $3,960,095 
Nonperforming— — — — — 7,651 3,057 — 10,708 
Total$552,620 $155,815 $110,989 $767,915 $828,395 $1,049,029 $502,369 $3,671 $3,970,803 
Year-to-date gross charge-offs$— $— $— $— $— $$96 $— $105 
Auto
Payment performance
Performing$157 $218 $49,109 $467,560 $227,342 $41,638 $— $845 $786,869 
Nonperforming— — 311 2,451 1,107 274 — — 4,143 
Total$157 $218 $49,420 $470,011 $228,449 $41,912 $— $845 $791,012 
Year-to-date gross charge-offs$— $— $1,690 $23,927 $12,077 $2,985 $— $— $40,679 
Other consumer
Payment performance
Performing$216,135 $171,060 $145,091 $73,178 $15,624 $27,294 $5,825 $143 $654,350 
Nonperforming— — — — — — — 
Total$216,135 $171,061 $145,091 $73,178 $15,624 $27,294 $5,825 $143 $654,351 
Year-to-date gross charge-offs$619 $$— $— $607 $1,106 $78 $— $2,411 
Schedule of Loans Purchased
The following table presents loan receivables purchased by portfolio segment, excluding loans acquired in business combinations:
Quarter Ended March 31,
20262025
(in thousands)
Residential real estate$3,478 $29,230