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Commitments and Contingencies | 6 Months Ended
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Jun. 30, 2026
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies | Commitments and Contingencies Our commitments associated with outstanding commitments to extend credit and standby and commercial letters of credit are summarized in the following table. Since commitments associated with commitments to extend credit and commercial and standby letters of credit may expire unused, the amounts shown do not necessarily reflect the actual future cash funding requirements. As of June 30, 2026 we had $2.82 billion in commitments to extend credit for on-balance sheet loans, compared to $2.31 billion as of December 31, 2025. The $507.8 million increase is largely attributed to a $220.0 million increase in credit cards, related to CCBX, a $101.2 million increase in residential real estate commitments, related to CCBX, an increase of $94.6 million in consumer and other loan commitments, related to CCBX and a $71.8 million increase in commercial and industrial capital call line commitments, also related to CCBX, partially offset by a $26.6 million decrease in commercial construction loans. As of June 30, 2026, commitments associated with sold credit card receivables subject to receivable sale agreements totaled $6.15 billion, compared to $4.17 billion as of December 31, 2025. While we retain the customer account relationship, subsequent receivables generated by these customer accounts are sold to BaaS partners pursuant to the applicable receivable sale agreements and remain subject to the Company's established partner and portfolio limits. The following table presents commitments associated with outstanding commitments to extend credit for on-balance sheet loans, CCBX sold credit card receivable commitments, standby and commercial letters of credit and equity investment commitments as of the periods indicated:
(dollars in thousands; unaudited) |  | As of June 30, 2026 |  | As of December 31, 2025
Commitments to extend credit: |  |  |  |
Commercial and industrial loans |  | $ | 122,821 |  |  | $ | 90,281 |
Commercial and industrial loans – capital call lines |  | 590,962 |  |  | 519,135 |
Construction – commercial real estate loans |  | 31,946 |  |  | 58,562 |
Construction – residential real estate loans |  | 43,339 |  |  | 39,676 |
Residential real estate loans |  | 785,719 |  |  | 684,485 |
Commercial real estate loans |  | 38,576 |  |  | 28,108 |
Credit cards |  | 1,039,541 |  |  | 819,495 |
Consumer and other loans |  | 162,950 |  |  | 68,302 |
Commitments to extend credit |  | $ | 2,815,854 |  |  | $ | 2,308,044 |
CCBX sold receivable commitment |  | $ | 6,153,420 |  |  | $ | 4,170,246 |
Standby letters of credit |  | $ | 2,224 |  |  | $ | 1,042 |
Equity investment commitment |  | $ | 917 |  |  | $ | 1,125 |
We have portfolio limits with each of our partners to manage loan concentration risk, liquidity risk and counterparty partner risk. For example, as of June 30, 2026, capital call lines outstanding balance totaled $204.8 million, and while commitments totaled $591.0 million, the commitments are cancelable and are also limited to a maximum of $350.0 million by agreement with the partner. These limits allow us to manage portfolio size by partner and by loan category. Commitments to extend credit on CCBX loans are included in the table above and are summarized below:
(dollars in thousands) | As of June 30, 2026 |  | As of December 31, 2025
Commitments to extend credit: |  |  |
Commercial and industrial loans | $ | 18,364 |  |  | $ | 23,859 |
Commercial and industrial loans - capital call lines | 590,962 |  |  | 519,135 |
Residential real estate loans | 737,158 |  |  | 631,973 |
Credit cards, consumer and other loans | 1,192,148 |  |  | 874,245 |
Commitments to extend credit | $ | 2,538,632 |  |  | $ | 2,049,212 |
CCBX sold receivable commitment | $ | 6,153,420 |  |  | $ | 4,170,246 |
As of June 30, 2026, $1.80 billion in CCBX commitments to extend credit for on-balance sheet loans were unconditionally cancelable, compared to $1.42 billion at December 31, 2025. Commitments that are unconditionally cancelable allow us to manage loan growth, credit concentrations and liquidity. We also limit CCBX partners to a maximum aggregate customer loan balance originated and held on our balance sheet, as shown in the table below.
(dollars in thousands) | Type of Lending |  | Maximum Portfolio Size
Commercial and industrial loans: |  |  |
Capital call lines | Business - Venture Capital |  | $ | 350,000 |
All other commercial & industrial loans | Business - Small Business |  | 509,897 |
Real estate loans: |  |  |
Home equity lines of credit | Home Equity - Secured Credit Cards |  | 356,250 |
Consumer and other loans: |  |  |
Credit cards | Credit Cards - Primarily Consumer |  | 1,208,750 |
Installment loans | Consumer |  | 1,660,103 |
Other consumer and other loans | Consumer - Secured Credit Builder & Unsecured consumer |  | 775,000 |
|  |  | 4,860,000 |
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commercial and industrial loan commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. For community bank lending, we evaluate each borrower's creditworthiness on a case-by-case basis. The amount of collateral obtained, if considered necessary by us, upon extension of credit, is based on management’s credit evaluation of the customer. The type of collateral held varies but may include accounts receivable, inventory, property and equipment, and income-producing commercial properties. For CCBX lending programs, loans are originated in accordance with Bank-approved underwriting criteria established for each partner program and are subject to contractual terms and ongoing oversight and monitoring by the Bank. Standby and commercial letters of credit are conditional commitments issued by us to guarantee the performance of a customer to a third party. In the event of nonperformance by the customer, we have rights to the underlying collateral, which can include commercial real estate, physical plant and property, inventory, receivables, cash and/or marketable securities. Our credit risk associated with issuing letters of credit is essentially the same as the risk involved in extending loan facilities to our customers. No losses were incurred in 2026 or 2025 under these commitments. The Company also has agreements with certain key officers that provide for potential payments upon retirement, disability, termination, change in control and death. The Company is subject to claims and lawsuits which arise primarily in the ordinary course of business. It is the opinion of management that the disposition or ultimate resolution of such claims and lawsuits will not have a material adverse effect on the financial position of the Company.

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