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Allowance for Credit Losses

9 Months Ended

Sep. 30, 2025

Note 6 Allowance for Credit Losses

The tables below detail the Company’s allowance for credit losses as of the dates shown:


	Three months ended September 30, 2025
			Non-owner
			occupied
			commercial		Residential
	Commercial		real estate		real estate		Consumer		Total
Beginning balance	$	47,934	$	22,219	$	18,429	$	311	$	88,893
Charge-offs		(1,410)		—		(27)		(180)		(1,617)
Recoveries		2,238		225		3		38		2,504
Provision (release) expense for credit losses		(707)		(1,333)		371		169		(1,500)
Ending balance	$	48,055	$	21,111	$	18,776	$	338	$	88,280

	Nine months ended September 30, 2025
			Non-owner
			occupied
			commercial		Residential
	Commercial		real estate		real estate		Consumer		Total
Beginning balance	$	48,552	$	26,136	$	19,426	$	341	$	94,455
Charge-offs		(15,957)		(1,467)		(28)		(574)		(18,026)
Recoveries		2,401		242		62		107		2,812
Provision expense (release) for credit losses		13,059		(3,800)		(684)		464		9,039
Ending balance	$	48,055	$	21,111	$	18,776	$	338	$	88,280


	Three months ended September 30, 2024
			Non-owner
			occupied
			commercial		Residential
	Commercial		real estate		real estate		Consumer		Total
Beginning balance	$	48,910	$	27,412	$	19,759	$	376	$	96,457
Charge-offs		(2,930)		(293)		—		(282)		(3,505)
Recoveries		60		—		5		30		95
Provision expense for credit losses		210		937		636		217		2,000
Ending balance	$	46,250	$	28,056	$	20,400	$	341	$	95,047


	Nine months ended September 30, 2024
			Non-owner
			occupied
			commercial		Residential
	Commercial		real estate		real estate		Consumer		Total
Beginning balance	$	45,304	$	32,665	$	19,550	$	428	$	97,947
Charge-offs		(2,954)		(4,715)		—		(718)		(8,387)
Recoveries		352		7		95		327		781
Provision expense for credit losses		3,548		99		755		304		4,706
Ending balance	$	46,250	$	28,056	$	20,400	$	341	$	95,047

In evaluating the loan portfolio for an appropriate ACL level, excluding loans evaluated individually, loans were grouped into segments based on broad characteristics such as primary use and underlying collateral. Within the segments, the portfolio was further disaggregated into classes of loans with similar attributes and risk characteristics for purposes of developing the underlying data used within the discounted cash flow model including, but not limited to, prepayment and recovery rates as well as loss rates tied to macro-economic conditions within management’s reasonable and supportable forecast. The ACL also includes subjective adjustments based upon qualitative risk factors including asset quality, loss trends, lending management, portfolio growth and loan review/internal audit results.

At September 30, 2025 and December 31, 2024, the allowance for credit losses totaled $88.3 million and $94.5 million, respectively. The decrease during the nine months ended September 30, 2025 was primarily driven by the resolution of non-performing loans and changes in the CECL model’s underlying macro-economic forecast. During the three months ended September 30, 2025, the Company recorded provision release for funded loans totaling $1.5 million, primarily driven by the recovery of one previously charged off credit. During the nine months ended September 30, 2025, the Company recorded provision expense for credit losses totaling $8.7 million, including $9.0 million provision expense for funded loans and $0.3 million of provision release for unfunded loan commitments. Provision expense for credit losses during the nine months ended September 30, 2025 was recorded primarily to cover a charge-off on one credit due to suspected fraudulent activity by the borrower. During the three months ended September 30, 2024, the Company recorded provision expense for credit losses on funded loans totaling $2.0 million. During the nine months ended September 30, 2024, the Company recorded provision expense for credit losses totaling $4.8 million, including $4.7 million of provision expense for funded loans and $0.1 million of provision expense for unfunded loan commitments. Net recoveries on loans during the three months ended September 30, 2025 totaled $0.9 million. Net charge-offs during the nine months ended September 30, 2025 totaled $15.2 million. During the three and nine months ended September 30, 2024, net charge-offs on loans totaled $3.4 million and $7.6 million, respectively.

The Company has elected to exclude AIR from the allowance for credit losses calculation. As of September 30, 2025 and December 31, 2024, AIR from loans totaled $45.1 million and $41.5 million, respectively.