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Loans | 6 Months Ended
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Jun. 30, 2026
Receivables [Abstract] |
Loans | Loans The Company’s loan portfolios consist of the following:
| June 30, 2026 |  | December 31, 2025
Loans held for sale at fair value | $ | 1,773,052 |  |  | $ | 1,762,396 |
Loans held for investment at fair value | 2,085,066 |  |  | 473,314 |
Total loans at fair value | 3,858,118 |  |  | 2,235,710 |
Loans and leases held for investment at amortized cost, net | 2,993,252 |  |  | 3,997,069 |
Total loans and leases | $ | 6,851,370 |  |  | $ | 6,232,779 |
For loans held at fair value, see “Note 5. Fair Value Measurements” for the assumptions used in the Company’s fair value model. Loans and Leases Held for Investment at Amortized Cost, Net The Company defines its loans and leases HFI portfolio segments as (i) consumer and (ii) commercial. The following table presents the components of each portfolio segment by class of financing receivable:
| June 30, 2026 |  | December 31, 2025
Unsecured consumer | $ | 2,207,014 |  |  | $ | 3,191,430 |
Residential mortgages | 147,460 |  |  | 151,073 |
Secured consumer | 190,778 |  |  | 261,045 |
Total consumer loans held for investment at amortized cost | 2,545,252 |  |  | 3,603,548 |
Equipment finance(1) | 33,249 |  |  | 39,757 |
Commercial real estate(2)(3) | 460,203 |  |  | 472,489 |
Commercial and industrial | 147,441 |  |  | 157,018 |
Total commercial loans and leases held for investment at amortized cost | 640,893 |  |  | 669,264 |
Total loans and leases held for investment at amortized cost(4) | 3,186,145 |  |  | 4,272,812 |
Allowance for loan and lease losses | (192,893) |  |  | (275,743) |
Loans and leases held for investment at amortized cost, net | $ | 2,993,252 |  |  | $ | 3,997,069 |
(1) Comprised of sales-type leases for equipment. See “Note 16. Leases” for additional information. (2) Includes $279.6 million and $286.8 million in loans originated through the Small Business Administration (SBA) as of June 30, 2026 and December 31, 2025, respectively. (3) As of both June 30, 2026 and December 31, 2025, the Commercial Real Estate (CRE) office loan balance was under $35 million. (4) A ccrued interest receivable is excluded from the amortized cost basis of loans and leases HFI and is reported within “Other assets” on the Balance Sheet. Net accrued interest receivable related to loans and leases HFI at amortized cost was $13.4 million and $17.9 million as of June 30, 2026 and December 31, 2025, respectively. The following table presents the components of the allowance for loan and lease losses (ALLL):
| June 30, 2026 |  | December 31, 2025
Gross allowance for loan and lease losses(1) | $ | 227,500 |  |  | $ | 312,667 |
Recovery asset value(2) | (34,607) |  |  | (36,924) |
Allowance for loan and lease losses | $ | 192,893 |  |  | $ | 275,743 |
(1) Represents the allowance for future estimated net charge-offs on existing portfolio balances. (2) Represents the negative allowance for expected recoveries of amounts previously charged-off.
June 30, 2026 | Consumer |  | Commercial |  | Total
Loans and leases held for investment at amortized cost | $ | 2,545,252 |  |  | $ | 640,893 |  |  | $ | 3,186,145 |
Allowance for loan and lease losses | $ | 176,727 |  |  | $ | 16,166 |  |  | $ | 192,893 |
Allowance ratio(1) | 6.9 | % |  | 2.5 | % |  | 6.1 | %
Gross allowance for loan and lease losses | $ | 211,334 |  |  | $ | 16,166 |  |  | $ | 227,500 |
Gross allowance ratio(1) | 8.3 | % |  | 2.5 | % |  | 7.1 | %
December 31, 2025 | Consumer |  | Commercial |  | Total
Loans and leases held for investment at amortized cost | $ | 3,603,548 |  |  | $ | 669,264 |  |  | $ | 4,272,812 |
Allowance for loan and lease losses | $ | 258,811 |  |  | $ | 16,932 |  |  | $ | 275,743 |
Allowance ratio(1) | 7.2 | % |  | 2.5 | % |  | 6.5 | %
Gross allowance for loan and lease losses | $ | 295,735 |  |  | $ | 16,932 |  |  | $ | 312,667 |
Gross allowance ratio(1) | 8.2 | % |  | 2.5 | % |  | 7.3 | %
(1) Calculated as ALLL or gross ALLL, where applicable, to the corresponding portfolio segment balance of loans and leases HFI at amortized cost. The activity in the ACL by portfolio segment was as follows:
| Three Months Ended June 30, |  |  |  |  |  |
| 2026 |  | 2025 |  |
| Consumer |  | Commercial |  | Total |  | Consumer |  | Commercial |  | Total |  |  |  |  |  |
Allowance for loan and lease losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning of period | $ | 221,196 |  |  | $ | 16,501 |  |  | $ | 237,697 |  |  | $ | 227,608 |  |  | $ | 16,585 |  |  | $ | 244,193 |  |  |  |  |  |  |
Credit loss (benefit) expense | (10,486) |  |  | (399) |  |  | (10,885) |  |  | 41,133 |  |  | (537) |  |  | 40,596 |  |  |  |  |  |  |
Charge-offs | (46,395) |  |  | (32) |  |  | (46,427) |  |  | (48,956) |  |  | (898) |  |  | (49,854) |  |  |  |  |  |  |
Recoveries | 12,412 |  |  | 96 |  |  | 12,508 |  |  | 17,648 |  |  | 406 |  |  | 18,054 |  |  |  |  |  |  |
End of period | $ | 176,727 |  |  | $ | 16,166 |  |  | $ | 192,893 |  |  | $ | 237,433 |  |  | $ | 15,556 |  |  | $ | 252,989 |  |  |  |  |  |  |
Reserve for unfunded lending commitments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning of period | $ | — |  |  | $ | 830 |  |  | $ | 830 |  |  | $ | — |  |  | $ | 1,629 |  |  | $ | 1,629 |  |  |  |  |  |  |
Credit loss benefit | — |  |  | (197) |  |  | (197) |  |  | — |  |  | (44) |  |  | (44) |  |  |  |  |  |  |
End of period(1) | $ | — |  |  | $ | 633 |  |  | $ | 633 |  |  | $ | — |  |  | $ | 1,585 |  |  | $ | 1,585 |  |  |  |  |  |  |
| Six Months Ended June 30,
| 2026 |  | 2025
| Consumer |  | Commercial |  | Total |  | Consumer |  | Commercial |  | Total
Allowance for loan and lease losses: |  |  |  |  |  |  |  |  |  |  |
Beginning of period | $ | 258,811 |  |  | $ | 16,932 |  |  | $ | 275,743 |  |  | $ | 212,598 |  |  | $ | 24,136 |  |  | $ | 236,734 |
Credit loss (benefit) expense | (9,085) |  |  | (954) |  |  | (10,039) |  |  | 97,081 |  |  | (103) |  |  | 96,978 |
Charge-offs | (99,039) |  |  | (158) |  |  | (99,197) |  |  | (107,300) |  |  | (9,130) |  |  | (116,430) |
Recoveries | 26,040 |  |  | 346 |  |  | 26,386 |  |  | 35,054 |  |  | 653 |  |  | 35,707 |
End of period | $ | 176,727 |  |  | $ | 16,166 |  |  | $ | 192,893 |  |  | $ | 237,433 |  |  | $ | 15,556 |  |  | $ | 252,989 |
Reserve for unfunded lending commitments: |  |  |  |  |  |  |  |  |  |
Beginning of period | $ | — |  |  | $ | 1,009 |  |  | $ | 1,009 |  |  | $ | — |  |  | $ | 1,183 |  |  | $ | 1,183 |
Credit loss (benefit) expense | — |  |  | (376) |  |  | (376) |  |  | — |  |  | 402 |  |  | 402 |
End of period(1) | $ | — |  |  | $ | 633 |  |  | $ | 633 |  |  | $ | — |  |  | $ | 1,585 |  |  | $ | 1,585 |
(1) Relates to $35.2 million and $103.4 million of unfunded commitments as of June 30, 2026 and 2025, respectively. As a result of the Company’s election of the fair value option, all loan originations in the first half of 2026 were accounted for at fair value. See “Note 1. Summary of Significant Accounting Policies” for additional information. Accordingly, no originations subsequent to 2025 are presented in the tables below. The following table presents charge-offs by origination year for the first half of 2026:
|  |  |  | Gross Charge-Offs by Origination Year |  |  |  |
|  |  | 2025 |  | 2024 |  | 2023 |  | 2022 |  | Prior |  |  |  | Total
Unsecured consumer(1) |  |  |  | $ | 40,631 |  |  | $ | 28,086 |  |  | $ | 13,687 |  |  | $ | 12,900 |  |  | $ | 2,270 |  |  |  |  | $ | 97,574 |
Residential mortgages |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  | — |
Secured consumer |  |  |  | 461 |  |  | 214 |  |  | 413 |  |  | 312 |  |  | 65 |  |  |  |  | 1,465 |
Total consumer loans held for investment at amortized cost |  |  |  | 41,092 |  |  | 28,300 |  |  | 14,100 |  |  | 13,212 |  |  | 2,335 |  |  |  |  | 99,039 |
Equipment finance |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  | — |
Commercial real estate |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  | — |
Commercial and industrial |  |  |  | — |  |  | — |  |  | 32 |  |  | 126 |  |  | — |  |  |  |  | 158 |
Total commercial loans and leases held for investment at amortized cost |  |  |  | — |  |  | — |  |  | 32 |  |  | 126 |  |  | — |  |  |  |  | 158 |
Total loans and leases held for investment at amortized cost |  |  |  | $ | 41,092 |  |  | $ | 28,300 |  |  | $ | 14,132 |  |  | $ | 13,338 |  |  | $ | 2,335 |  |  |  |  | $ | 99,197 |
(1) Unsecured consumer loans are generally charged-off when a borrower is contractually 120 days past due. Consumer Lending Credit Quality Indicators The Company evaluates the credit quality of its consumer loan portfolio based on the aging status of the loan and by payment activity. Loan delinquency reporting is based upon borrower payment activity relative to the contractual terms of the loan. The following tables present the classes of financing receivables within the consumer portfolio segment by credit quality indicator based on delinquency status and origination year:
June 30, 2026 |  |  |  | Term Loans and Leases by Origination Year |  |  |  |
|  |  |  | 2025 |  | 2024 |  | 2023 |  | 2022 |  | Prior |  |  |  | Total
Unsecured consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  |  | $ | 1,285,108 |  |  | $ | 501,367 |  |  | $ | 201,392 |  |  | $ | 163,284 |  |  | $ | 11,819 |  |  |  |  | $ | 2,162,970 |
30-59 days past due |  |  |  | 7,453 |  |  | 4,833 |  |  | 2,130 |  |  | 1,802 |  |  | 340 |  |  |  |  | 16,558 |
60-89 days past due |  |  |  | 6,663 |  |  | 3,628 |  |  | 1,664 |  |  | 1,617 |  |  | 246 |  |  |  |  | 13,818 |
90 or more days past due |  |  |  | 6,145 |  |  | 3,607 |  |  | 1,686 |  |  | 1,522 |  |  | 312 |  |  |  |  | 13,272 |
Total unsecured consumer(1) |  |  |  | 1,305,369 |  |  | 513,435 |  |  | 206,872 |  |  | 168,225 |  |  | 12,717 |  |  |  |  | 2,206,618 |
Residential mortgages |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  |  | — |  |  | — |  |  | — |  |  | 39,964 |  |  | 106,534 |  |  |  |  | 146,498 |
30-59 days past due |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  | — |
60-89 days past due |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  | — |
90 or more days past due |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 962 |  |  |  |  | 962 |
Total residential mortgages |  |  |  | — |  |  | — |  |  | — |  |  | 39,964 |  |  | 107,496 |  |  |  |  | 147,460 |
Secured consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  |  | 103,550 |  |  | 34,012 |  |  | 29,314 |  |  | 16,854 |  |  | 3,999 |  |  |  |  | 187,729 |
30-59 days past due |  |  |  | 871 |  |  | 246 |  |  | 413 |  |  | 543 |  |  | 126 |  |  |  |  | 2,199 |
60-89 days past due |  |  |  | 308 |  |  | 119 |  |  | 133 |  |  | 121 |  |  | 20 |  |  |  |  | 701 |
90 or more days past due |  |  |  | 61 |  |  | — |  |  | 22 |  |  | 44 |  |  | 22 |  |  |  |  | 149 |
Total secured consumer |  |  |  | 104,790 |  |  | 34,377 |  |  | 29,882 |  |  | 17,562 |  |  | 4,167 |  |  |  |  | 190,778 |
Total consumer loans held for investment at amortized cost |  |  |  | $ | 1,410,159 |  |  | $ | 547,812 |  |  | $ | 236,754 |  |  | $ | 225,751 |  |  | $ | 124,380 |  |  |  |  | $ | 2,544,856 |
(1) Excludes basis adjustment for loans previously designated in fair value hedges under the portfolio layer method. As of June 30, 2026, the remaining unamortized basis adjustment totaled $0.4 million and represents an increase to the amortized cost of the previously hedged loans. See “Note 7. Derivative Instruments and Hedging Activities” for additional information.
December 31, 2025 |  | Term Loans and Leases by Origination Year |  |  |  |
|  | 2025 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | Prior |  |  |  | Total
Unsecured consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | 1,741,108 |  |  | $ | 740,483 |  |  | $ | 326,147 |  |  | $ | 283,513 |  |  | $ | 39,605 |  |  | $ | — |  |  |  |  | $ | 3,130,856 |
30-59 days past due |  | 9,084 |  |  | 5,680 |  |  | 3,533 |  |  | 3,591 |  |  | 603 |  |  | — |  |  |  |  | 22,491 |
60-89 days past due |  | 6,500 |  |  | 5,447 |  |  | 2,887 |  |  | 3,051 |  |  | 665 |  |  | — |  |  |  |  | 18,550 |
90 or more days past due |  | 4,862 |  |  | 6,049 |  |  | 3,105 |  |  | 3,223 |  |  | 697 |  |  | — |  |  |  |  | 17,936 |
Total unsecured consumer(1) |  | 1,761,554 |  |  | 757,659 |  |  | 335,672 |  |  | 293,378 |  |  | 41,570 |  |  | — |  |  |  |  | 3,189,833 |
Residential mortgages |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  | — |  |  | — |  |  | — |  |  | 40,931 |  |  | 50,129 |  |  | 59,039 |  |  |  |  | 150,099 |
30-59 days past due |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  | — |
60-89 days past due |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 888 |  |  |  |  | 888 |
90 or more days past due |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 86 |  |  |  |  | 86 |
Total residential mortgages |  | — |  |  | — |  |  | — |  |  | 40,931 |  |  | 50,129 |  |  | 60,013 |  |  |  |  | 151,073 |
Secured consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  | 134,255 |  |  | 47,453 |  |  | 42,332 |  |  | 26,961 |  |  | 3,769 |  |  | 2,278 |  |  |  |  | 257,048 |
30-59 days past due |  | 778 |  |  | 261 |  |  | 816 |  |  | 941 |  |  | 210 |  |  | — |  |  |  |  | 3,006 |
60-89 days past due |  | 131 |  |  | 128 |  |  | 109 |  |  | 177 |  |  | 51 |  |  | — |  |  |  |  | 596 |
90 or more days past due |  | 78 |  |  | 31 |  |  | 133 |  |  | 153 |  |  | — |  |  | — |  |  |  |  | 395 |
Total secured consumer |  | 135,242 |  |  | 47,873 |  |  | 43,390 |  |  | 28,232 |  |  | 4,030 |  |  | 2,278 |  |  |  |  | 261,045 |
Total consumer loans held for investment at amortized cost |  | $ | 1,896,796 |  |  | $ | 805,532 |  |  | $ | 379,062 |  |  | $ | 362,541 |  |  | $ | 95,729 |  |  | $ | 62,291 |  |  |  |  | $ | 3,601,951 |
(1) Excludes cumulative basis adjustment for loans designated in fair value hedges under the portfolio layer method. As of December 31, 2025, the basis adjustment totaled $1.6 million and represents an increase to the amortized cost of the hedged loans. See “Note 7. Derivative Instruments and Hedging Activities” for additional information. Commercial Lending Credit Quality Indicators The Company evaluates the credit quality of its commercial loan portfolio based on regulatory risk ratings. The Company categorizes loans and leases into risk ratings based on relevant information about the quality and realizable value of collateral, if any, and the ability of obligors to service their debts, such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans and leases individually by classifying the loans and leases based on their associated credit risk and performs this analysis whenever credit is extended, renewed or modified, or when an observable event occurs indicating a potential decline in credit quality, and no less than annually for large balance loans. Risk rating classifications consist of the following: Pass – Loans and leases that the Company believes will fully repay in accordance with the contractual loan terms. Special Mention – Loans and leases with a potential weakness that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or the Company’s credit position at some future date. Substandard – Loans and leases that are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans and leases so classified have a well-defined weakness or weaknesses that jeopardize the repayment and liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Normal payment from the borrower is in jeopardy, although loss of principal, while still possible, is not imminent. Doubtful – Loans and leases that have all the weaknesses inherent in those classified as Substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions, and values, highly questionable and improbable. Loss – Loans and leases that are considered uncollectible and of little value. The following tables present the classes of financing receivables within the commercial portfolio segment by risk rating and origination year:
June 30, 2026 |  |  |  | Term Loans and Leases by Origination Year |  |  |  |  |  |
|  |  |  | 2025 |  | 2024 |  | 2023 |  | 2022 |  | Prior |  |  |  | Total |  | Guaranteed Amount(1)
Equipment finance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 18,817 |  |  | $ | 8,961 |  |  |  |  | $ | 27,778 |  |  | $ | — |
Special mention |  |  |  | — |  |  | — |  |  | — |  |  | 2,016 |  |  | 33 |  |  |  |  | 2,049 |  |  | — |
Substandard |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2,728 |  |  |  |  | 2,728 |  |  | — |
Doubtful |  |  |  | — |  |  | — |  |  | — |  |  | 694 |  |  | — |  |  |  |  | 694 |  |  | — |
Loss |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  | — |  |  | — |
Total equipment finance |  |  |  | — |  |  | — |  |  | — |  |  | 21,527 |  |  | 11,722 |  |  |  |  | 33,249 |  |  | — |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  |  | 96,288 |  |  | 35,495 |  |  | 63,273 |  |  | 92,421 |  |  | 147,568 |  |  |  |  | 435,045 |  |  | 29,645 |
Special mention |  |  |  | — |  |  | 520 |  |  | — |  |  | 453 |  |  | 5,967 |  |  |  |  | 6,940 |  |  | 709 |
Substandard |  |  |  | — |  |  | — |  |  | — |  |  | 422 |  |  | 15,980 |  |  |  |  | 16,402 |  |  | 3,834 |
Doubtful |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 60 |  |  |  |  | 60 |  |  | — |
Loss |  |  |  | — |  |  | — |  |  | — |  |  | 1,121 |  |  | 635 |  |  |  |  | 1,756 |  |  | 1,536 |
Total commercial real estate |  |  |  | 96,288 |  |  | 36,015 |  |  | 63,273 |  |  | 94,417 |  |  | 170,210 |  |  |  |  | 460,203 |  |  | 35,724 |
Commercial and industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  |  | 23,977 |  |  | 26,420 |  |  | 13,198 |  |  | 12,056 |  |  | 25,422 |  |  |  |  | 101,073 |  |  | 68,584 |
Special mention |  |  |  | — |  |  | — |  |  | — |  |  | 5,876 |  |  | — |  |  |  |  | 5,876 |  |  | 4,499 |
Substandard |  |  |  | — |  |  | 2,635 |  |  | 9,175 |  |  | 11,238 |  |  | 6,872 |  |  |  |  | 29,920 |  |  | 20,677 |
Doubtful |  |  |  | — |  |  | — |  |  | — |  |  | 2,880 |  |  | 1,443 |  |  |  |  | 4,323 |  |  | 3,444 |
Loss |  |  |  | — |  |  | 751 |  |  | 1,783 |  |  | 3,715 |  |  | — |  |  |  |  | 6,249 |  |  | 6,249 |
Total commercial and industrial |  |  |  | 23,977 |  |  | 29,806 |  |  | 24,156 |  |  | 35,765 |  |  | 33,737 |  |  |  |  | 147,441 |  |  | 103,453 |
Total commercial loans and leases held for investment at amortized cost |  |  |  | $ | 120,265 |  |  | $ | 65,821 |  |  | $ | 87,429 |  |  | $ | 151,709 |  |  | $ | 215,669 |  |  |  |  | $ | 640,893 |  |  | $ | 139,177 |
(1) Represents loan balances guaranteed by the SBA.
December 31, 2025 |  | Term Loans and Leases by Origination Year |  |  |  |  |  |
|  | 2025 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | Prior |  |  |  | Total |  | Guaranteed Amount(1)
Equipment finance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 21,283 |  |  | $ | 1,990 |  |  | $ | 9,762 |  |  |  |  | $ | 33,035 |  |  | $ | — |
Special mention |  | — |  |  | — |  |  | — |  |  | 2,587 |  |  | 227 |  |  | — |  |  |  |  | 2,814 |  |  | — |
Substandard |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,212 |  |  | — |  |  |  |  | 3,212 |  |  | — |
Doubtful |  | — |  |  | — |  |  | — |  |  | 696 |  |  | — |  |  | — |  |  |  |  | 696 |  |  | — |
Loss |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  | — |  |  | — |
Total equipment finance |  | — |  |  | — |  |  | — |  |  | 24,566 |  |  | 5,429 |  |  | 9,762 |  |  |  |  | 39,757 |  |  | — |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 95,736 |  |  | 36,356 |  |  | 63,750 |  |  | 94,771 |  |  | 32,452 |  |  | 121,231 |  |  |  |  | 444,296 |  |  | 30,959 |
Special mention |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 6,088 |  |  |  |  | 6,088 |  |  | — |
Substandard |  | — |  |  | — |  |  | — |  |  | 428 |  |  | 8,433 |  |  | 11,370 |  |  |  |  | 20,231 |  |  | 7,005 |
Doubtful |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 61 |  |  |  |  | 61 |  |  | — |
Loss |  | — |  |  | — |  |  | — |  |  | 1,121 |  |  | 271 |  |  | 421 |  |  |  |  | 1,813 |  |  | 1,543 |
Total commercial real estate |  | 95,736 |  |  | 36,356 |  |  | 63,750 |  |  | 96,320 |  |  | 41,156 |  |  | 139,171 |  |  |  |  | 472,489 |  |  | 39,507 |
Commercial and industrial |  |
Pass |  | 21,987 |  |  | 28,942 |  |  | 16,580 |  |  | 18,108 |  |  | 19,441 |  |  | 7,879 |  |  |  |  | 112,937 |  |  | 75,216 |
Special mention |  | — |  |  | — |  |  | — |  |  | 8,535 |  |  | 2,959 |  |  | 67 |  |  |  |  | 11,561 |  |  | 9,264 |
Substandard |  | — |  |  | 1,438 |  |  | 8,275 |  |  | 5,153 |  |  | 3,126 |  |  | 3,010 |  |  |  |  | 21,002 |  |  | 13,790 |
Doubtful |  | — |  |  | — |  |  | — |  |  | 3,456 |  |  | 1,348 |  |  | 511 |  |  |  |  | 5,315 |  |  | 4,353 |
Loss |  | — |  |  | 751 |  |  | 1,766 |  |  | 3,686 |  |  | — |  |  | — |  |  |  |  | 6,203 |  |  | 6,203 |
Total commercial and industrial |  | 21,987 |  |  | 31,131 |  |  | 26,621 |  |  | 38,938 |  |  | 26,874 |  |  | 11,467 |  |  |  |  | 157,018 |  |  | 108,826 |
Total commercial loans and leases held for investment at amortized cost |  | $ | 117,723 |  |  | $ | 67,487 |  |  | $ | 90,371 |  |  | $ | 159,824 |  |  | $ | 73,459 |  |  | $ | 160,400 |  |  |  |  | $ | 669,264 |  |  | $ | 148,333 |
(1) Represents loan balances guaranteed by the SBA. The following tables present loans and leases HFI at amortized cost within the commercial portfolio segment by delinquency status:
June 30, 2026 | Current |  | 30-59 Days |  | 60-89 Days |  | 90 or More Days |  | Total |  |
Equipment finance | $ | 29,827 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,422 |  |  | $ | 33,249 |  |  |
Commercial real estate | 452,065 |  |  | 1,765 |  |  | — |  |  | 6,373 |  |  | 460,203 |  |  |
Commercial and industrial | 118,763 |  |  | 2,560 |  |  | 2,888 |  |  | 23,230 |  |  | 147,441 |  |  |
Total commercial loans and leases held for investment at amortized cost | $ | 600,655 |  |  | $ | 4,325 |  |  | $ | 2,888 |  |  | $ | 33,025 |  |  | $ | 640,893 |  |  |
December 31, 2025 | Current |  | 30-59 Days |  | 60-89 Days |  | 90 or More Days |  | Total |  |  |  |  |  |
Equipment finance | $ | 35,973 |  |  | $ | 696 |  |  | $ | — |  |  | $ | 3,088 |  |  | $ | 39,757 |  |  |  |  |  |  |
Commercial real estate | 461,307 |  |  | — |  |  | — |  |  | 11,182 |  |  | 472,489 |  |  |  |  |  |  |
Commercial and industrial | 133,526 |  |  | 1,540 |  |  | 1,878 |  |  | 20,074 |  |  | 157,018 |  |  |  |  |  |  |
Total commercial loans and leases held for investment at amortized cost | $ | 630,806 |  |  | $ | 2,236 |  |  | $ | 1,878 |  |  | $ | 34,344 |  |  | $ | 669,264 |  |  |  |  |  |  |
Loan Modifications The Company has loan modification programs to assist borrowers experiencing financial difficulty and to mitigate losses and maximize collections for loans serviced by the Company. The table below presents the amortized cost of loans that were modified during the periods presented, by modification type:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2026 |  | 2025 |  | 2026 |  | 2025
Short-term payment reduction | $ | 5,829 |  |  | $ | 6,892 |  |  | $ | 10,835 |  |  | $ | 12,686 |
Permanent loan modification | 1,384 |  |  | 1,764 |  |  | 3,007 |  |  | 3,286 |
Debt settlement | 2,373 |  |  | 2,859 |  |  | 2,383 |  |  | 2,903 |
Total loan modifications – unsecured consumer loans | $ | 9,586 |  |  | $ | 11,515 |  |  | $ | 16,225 |  |  | $ | 18,875 |
% of unsecured consumer loans at amortized cost as of period end | 0.4 | % |  | 0.3 | % |  | 0.7 | % |  | 0.6 | %
The Company expanded its digital channels to enable borrowers experiencing financial difficulty to qualify for a short-term payment reduction modification program. Under this program, borrowers may receive a temporary payment reduction for three months. If the borrower meets the temporary payment reduction requirements during the first three-month term, they may qualify for a payment reduction for an additional three months. Receiving an additional three months of payment reduction is considered an other-than-insignificant payment delay and becomes a short-term payment reduction modification. The short-term payment reduction modification results in a term extension of four to nine months compared to the original maturity date of the loan and does not include any principal or interest forgiveness. At the time of receiving a payment reduction, a delinquent loan resets to current status. However, if a borrower fails to comply with the modified terms, the delinquency status returns to the original contractual terms of the loan. Borrowers who were in their first three months of temporary payment reduction had a total of $9.9 million of loan balances at amortized cost outstanding as of June 30, 2026, and may subsequently be eligible for a short-term payment reduction modification. Permanent loan modifications include both a reduction in contractual interest rates and an extension to the contractual maturity date of up to twelve months and do not include any principal forgiveness. To qualify for this modification, borrowers must meet the Company’s debt-to-income ratio requirements. During the second quarter and first half of 2026, the weighted-average interest rate reduction under this program was approximately 8.8% for both periods. During the second quarter and first half of 2025, the weighted-average interest rate reduction under this program was approximately 8.0% and 8.1%, respectively. The weighted-average maturity date extension was approximately twelve months for all periods. Debt settlement modifications, which include engaging with debt settlement companies, reduce the principal and interest amounts owed by borrowers. The Company typically charges-off such loans within a few months following the modification, as payments under the modified agreement are less than the original contractual amounts. The following table presents the delinquency status of the amortized cost of loan modifications as of the periods presented below that were modified during the preceding twelve months:
| June 30, 2026 |  | June 30, 2025
| Short-term Payment Reduction |  | Permanent Loan Modification |  | Debt Settlement |  | Short-term Payment Reduction |  | Permanent Loan Modification |  | Debt Settlement
Unsecured consumer loans |  |  |  |  |  |  |  |  |  |  |
Current | $ | 14,475 |  |  | $ | 5,244 |  |  | $ | 7 |  |  | $ | 17,743 |  |  | $ | 5,433 |  |  | $ | — |
30-59 days | 1,191 |  |  | 180 |  |  | 10 |  |  | 1,372 |  |  | 135 |  |  | — |
60-89 days | 840 |  |  | 143 |  |  | 225 |  |  | 1,240 |  |  | 242 |  |  | 535 |
90 or more days | 575 |  |  | 64 |  |  | 2,145 |  |  | 1,074 |  |  | 153 |  |  | 2,374 |
Total loan modifications | $ | 17,081 |  |  | $ | 5,631 |  |  | $ | 2,387 |  |  | $ | 21,429 |  |  | $ | 5,963 |  |  | $ | 2,909 |
A modified loan is generally charged-off in the event of a borrower defaulting at 120 days past due. The table below presents the total amount of charge-offs during the period for loan modifications that were entered into within the preceding twelve months of charge-off:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2026 |  | 2025 |  | 2026 |  | 2025
Short-term payment reduction | $ | 1,944 |  |  | $ | 2,132 |  |  | $ | 3,790 |  |  | $ | 4,718 |
Permanent loan modification | 228 |  |  | 381 |  |  | 667 |  |  | 903 |
Debt settlement | 7,343 |  |  | 8,829 |  |  | 16,011 |  |  | 22,165 |
Total loan modifications – unsecured consumer loans | $ | 9,515 |  |  | $ | 11,342 |  |  | $ | 20,468 |  |  | $ | 27,786 |
Nonaccrual Assets Nonaccrual loans and leases are those for which accrual of interest has been suspended. Loans and leases are generally placed on nonaccrual status when contractually past due 90 days or more, or earlier if management believes that the probability of collection does not warrant further accrual. Certain loans on nonaccrual status may be considered collateral-dependent loans if the borrower is experiencing financial difficulty and repayment of the loan is expected to be substantially through sale of the collateral. Such loans are secured by various types of collateral, including real estate, auto and equipment, among others. Expected credit losses for the Company’s collateral-dependent loans are calculated as the difference between the amortized cost basis and the fair value of the underlying collateral less costs to sell, if applicable. The fair value of the underlying collateral is generally based on third-party appraisals, which are updated on a case-by-case basis. The following table presents nonaccrual loans and leases HFI at amortized cost:
| June 30, 2026 |  | December 31, 2025 |  |
| Nonaccrual |  | Nonaccrual with no related ACL(1) |  | Nonaccrual |  | Nonaccrual with no related ACL(1) |  |  |  |  |  |
Unsecured consumer | $ | 13,272 |  |  | $ | — |  |  | $ | 17,936 |  |  | $ | — |  |  |  |  |  |  |
Residential mortgages | 1,230 |  |  | 1,230 |  |  | 431 |  |  | 431 |  |  |  |  |  |  |
Secured consumer | 149 |  |  | — |  |  | 395 |  |  | — |  |  |  |  |  |  |
Total nonaccrual consumer loans held for investment at amortized cost | 14,651 |  |  | 1,230 |  |  | 18,762 |  |  | 431 |  |  |  |  |  |  |
Equipment finance | 3,422 |  |  | — |  |  | 3,088 |  |  | — |  |  |  |  |  |  |
Commercial real estate | 6,809 |  |  | 1,857 |  |  | 11,253 |  |  | 5,799 |  |  |  |  |  |  |
Commercial and industrial | 30,437 |  |  | 10,997 |  |  | 27,329 |  |  | 10,137 |  |  |  |  |  |  |
Total nonaccrual commercial loans and leases held for investment at amortized cost(2) | 40,668 |  |  | 12,854 |  |  | 41,670 |  |  | 15,936 |  |  |  |  |  |  |
Total nonaccrual loans and leases held for investment at amortized cost | $ | 55,319 |  |  | $ | 14,084 |  |  | $ | 60,432 |  |  | $ | 16,367 |  |  |  |  |  |  |
(1) Subset of total nonaccrual loans and leases HFI at amortized cost. (2) Includes $28.3 million and $29.7 million in loan balances guaranteed by the SBA as of June 30, 2026 and December 31, 2025, respectively.
| June 30, 2026 |  | December 31, 2025 |  |
| Nonaccrual |  | Nonaccrual Ratios(1) |  | Nonaccrual |  | Nonaccrual Ratios(1) |  |  |  |  |  |
Total nonaccrual consumer loans held for investment at amortized cost | $ | 14,651 |  |  | 0.6 | % |  | $ | 18,762 |  |  | 0.5 | % |  |  |  |  |  |
Total nonaccrual commercial loans and leases held for investment at amortized cost | 40,668 |  |  | 6.3 | % |  | 41,670 |  |  | 6.2 | % |  |  |  |  |  |
Total nonaccrual loans and leases held for investment at amortized cost | $ | 55,319 |  |  | 1.7 | % |  | $ | 60,432 |  |  | 1.4 | % |  |  |  |  |  |
(1) Calculated as the ratio of nonaccrual loans and leases to loans and leases HFI at amortized cost.

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