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Loans Receivable and Allowance for Credit Losses
 12 Months Ended
Dec. 31, 2025
Receivables [Abstract]  
Loans Receivable and Allowance for Credit Losses LOANS RECEIVABLE AND THE ALLOWANCE FOR CREDIT LOSSES
The following is a summary of loans receivable by loan segment:
December 31,
20252024
(Dollars in thousands)
Loan portfolio composition
CRE loans$8,494,508 $8,527,008 
C&I loans3,711,875 3,967,596 
Residential mortgage loans2,440,456 1,082,459 
Consumer and other loans54,173 41,209 
Total loans receivable, net of deferred costs and fees14,701,012 13,618,272 
Allowance for credit losses(156,661)(150,527)
Loans receivable, net of allowance for credit losses$14,544,351 $13,467,745 
The loan portfolio consists of four loan segments: commercial real estate (“CRE”) loans, commercial and industrial (“C&I”) loans, residential mortgage loans, and consumer and other loans.
CRE loans cover a broad array of commercial real estate segments including multi-tenant retail, hotels/motels, gas stations & car washes, mixed-use facilities, industrial warehouses, multifamily, single-tenant retail, office and other. CRE loans are extended for the purchase and refinance of commercial real estate and generally secured by first deeds of trust and are collateralized by residential or commercial properties. Repayment of the Company’s CRE loans is largely dependent on either income generated from collateral securing CRE loans or from cash flows from business operations of the borrower.
C&I loans are loans provided to businesses for various purposes such as working capital, purchasing inventory, debt refinancing, business acquisitions, international trade finance activities, and other business-related financing needs. The Company’s C&I loans are primarily secured by accounts receivables, inventory, and equipment. Repayment of C&I loans is generally dependent on the borrower’s business cash flows.
Residential mortgage loans are extended for personal, family, or household use and are secured by a first mortgage or deed of trust. Residential mortgage loans are usually secured by the property being financed and repayment is dependent on the borrower’s personal cash flow.
The Company’s consumer and other loans primarily consist of home equity, credit card loans, and personal loans. These loans are provided to borrowers on both a secured and unsecured basis but most of the Company’s consumer and other loans are unsecured. Repayment of consumer and other loans is dependent on the borrower’s personal cash flow.
The Company had $86.9 million in loans held for sale at December 31, 2025, compared with $14.5 million at December 31, 2024. Loans held for sale at December 31, 2025, consisted of $82.9 million in C&I loans and $4.0 million in residential mortgage loans, compared with $13.8 million in C&I loans and $646 thousand in residential mortgage loans at December 31, 2024. Loans held for sale are not included in the loans receivable table presented above.
The table below details the activity in the ACL by portfolio segment for the years ended December 31, 2025 and 2024, and 2023.
CRE LoansC&I LoansResidential Mortgage LoansConsumer and Other LoansTotal
(Dollars in thousands)
December 31, 2025
Balance, beginning of period$88,374 $57,243 $4,438 $472 $150,527 
Initial allowance for PSL and PCD loans acquired84 59 3,528 300 3,971 
Provision (credit) for credit losses(5,658)33,231 2,591 1,028 31,192 
Loans charged off(1,561)(32,669)— (1,087)(35,317)
Recoveries of charge offs3,905 2,308 — 75 6,288 
Balance, end of period$85,144 $60,172 $10,557 $788 $156,661 
December 31, 2024
Balance, beginning of period$93,940 $51,291 $12,838 $625 $158,694 
Provision (credit) for credit losses(5,021)31,818 (8,400)3 18,400 
Loans charged off(1,108)(29,662)— (318)(31,088)
Recoveries of charge offs563 3,796 — 162 4,521 
Balance, end of period$88,374 $57,243 $4,438 $472 $150,527 
December 31, 2023
Balance, beginning of period$95,884 $56,872 $8,920 $683 $162,359 
ASU 2022-02 day 1 adoption adjustment19 (426)— — (407)
Provision (credit) for credit losses(2,301)27,233 3,918 250 29,100 
Loans charged off(2,947)(34,203)— (370)(37,520)
Recoveries of charge offs3,285 1,815 — 62 5,162 
Balance, end of period$93,940 $51,291 $12,838 $625 $158,694 
The following tables break out the allowance for credit losses and loan balance by measurement methodology at December 31, 2025 and 2024:
December 31, 2025
CRE LoansC&I LoansResidential Mortgage LoansConsumer and Other LoansTotal
(Dollars in thousands)
Allowance for credit losses:
Individually evaluated$2,846 $12,260 $87 $2 $15,195 
Collectively evaluated82,298 47,912 10,470 786 141,466 
Total$85,144 $60,172 $10,557 $788 $156,661 
Loans outstanding:
Individually evaluated$65,106 $53,136 $13,198 $307 $131,747 
Collectively evaluated8,429,402 3,658,739 2,427,258 53,866 14,569,265 
Total$8,494,508 $3,711,875 $2,440,456 $54,173 $14,701,012 
December 31, 2024
CRE LoansC&I LoansResidential Mortgage LoansConsumer and Other LoansTotal
(Dollars in thousands)
Allowance for credit losses:
Individually evaluated$880 $5,172 $37 $— $6,089 
Collectively evaluated87,494 52,071 4,401 472 144,438 
Total$88,374 $57,243 $4,438 $472 $150,527 
Loans outstanding:
Individually evaluated$23,235 $60,807 $6,314 $47 $90,403 
Collectively evaluated8,503,773 3,906,789 1,076,145 41,162 13,527,869 
Total$8,527,008 $3,967,596 $1,082,459 $41,209 $13,618,272 
The ACL represents management’s best estimate of future lifetime expected losses on its held for investment loan portfolio. The Company calculates its ACL by estimating expected credit losses on a collective basis for loans that share similar risk characteristics. Loans that do not share similar risk characteristics with other loans are evaluated for credit losses on an individual basis. The Company uses a combination of a modeled and non-modeled approach that incorporates current and future economic conditions to estimate lifetime expected losses on a collective basis.
The Company uses Probability of Default (“PD”), Loss Given Default (“LGD”), and Exposure at Default (“EAD”) methodologies with quantitative factors and qualitative considerations in calculation of the allowance for credit losses for collectively assessed loans. The Company uses a reasonable and supportable period of 2 years at which point loss assumptions revert back to historical loss information by means of 1 year reversion period. The Company utilizes a consensus forecast scenario published by a third party that incorporates macroeconomic variables including GDP, unemployment rates, interest rates, and commercial real estate prices to project an economic outlook. The forecast scenario is utilized to estimate losses during the reasonable and supportable period. Changes in these assumptions and forecasts could significantly affect the Company’s estimate of future credit losses. See Note 1 “Significant Accounting Policies” for further discussion of the Company’s ACL methodology.
The increase in ACL for the year ended December 31, 2025 compared with December 31, 2024, consisted of an increase in ACL for individually evaluated loans, partially offset by a decrease in ACL for collectively evaluated loans. The increase in ACL for individually evaluated loans was primarily due to C&I loans.
The Company maintains a separate ACL for its off-balance sheet unfunded loan commitments. The Company uses a funding rate to allocate the allowance to undrawn exposures. This funding rate is used as a credit conversion factor to capture how much undrawn can potentially become drawn at any point. The funding rate is determined based on a lookback period of 8 quarters. Credit loss is not estimated for off-balance sheet credit exposures that are unconditionally cancellable by the Company.
At December 31, 2025 and 2024, reserves for unfunded loan commitments recorded in other liabilities were $3.3 million and $2.7 million, respectively. For the years ended December 31, 2025 and 2024, the Company recorded an addition to reserves for unfunded commitments of $610 thousand and a credit to reserves for unfunded commitments of $1.1 million, respectively.
Generally, loans are placed on nonaccrual status if principal and/or interest payments become 90 days or more past due and/or management deems the collectability of the principal and/or interest to be in question, as well as when required by regulatory requirements. Loans to customers whose financial conditions have deteriorated are considered for nonaccrual status whether or not the loan is 90 days or more past due. Generally, payments received on nonaccrual loans are recorded as principal reductions. Loans are returned to accrual status only when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. The Company does not recognize interest income while loans are on nonaccrual status.
The tables below represent the amortized cost of nonaccrual loans, as well as loans past due 90 days or more and still on accrual status, by loan segment and broken out by loans with a recorded ACL and those without a recorded ACL at December 31, 2025 and 2024.
December 31, 2025
Nonaccrual with No ACLNonaccrual with an ACL
Total Nonaccrual (1)
Accruing Loans Past Due 90 Days or More
(Dollars in thousands)
CRE loans$37,371 $27,735 $65,106 $1,794 
C&I loans17,665 35,471 53,136 — 
Residential mortgage loans5,331 7,867 13,198 2,149 
Consumer and other loans— 307 307 — 
Total$60,367 $71,380 $131,747 $3,943 
December 31, 2024
Nonaccrual with No ACLNonaccrual with an ACL
Total Nonaccrual (1)
Accruing Loans Past Due 90 Days or More
(Dollars in thousands)
CRE loans$17,691 $5,705 23,396 $— 
C&I loans33,005 27,802 60,807 129 
Residential mortgage loans2,933 3,381 6,314 — 
Consumer and other loans— 47 47 100 
Total$53,629 $36,935 $90,564 $229 
__________________________________
(1)    Total nonaccrual loans exclude the guaranteed portion of SBA loans that are in liquidation totaling $15.6 million and $12.8 million, at December 31, 2025 and 2024, respectively.
The following table presents the amortized cost of collateral-dependent loans at December 31, 2025 and 2024:
December 31, 2025December 31, 2024
Real Estate CollateralOther CollateralTotalReal Estate CollateralOther CollateralTotal
(Dollars in thousands)
CRE loans$59,525 $1,089 $60,614 $20,557 $— $20,557 
C&I loans4,289 47,495 51,784 6,105 53,809 59,914 
Residential mortgage loans5,331 — 5,331 2,933 — 2,933 
Total$69,145 $48,584 $117,729 $29,595 $53,809 $83,404 
Collateral on loans is a significant portion of what secures collateral-dependent loans and significant changes to the fair value of the collateral can potentially impact ACL. During the years ended December 31, 2025 and 2024, the Company did not have any significant changes to the extent to which collateral secured its collateral-dependent loans due to general deterioration or from other factors. Real estate collateral securing CRE and C&I loans consisted of commercial real estate properties including hotel/motel, building, office, gas station, warehouse, mixed-use and multifamily properties and real estate collateral securing residential mortgage loans consisted of underlying residential mortgage loan homes. Collateral dependent loans secured by other collateral as of December 31, 2025 and 2024, consisted of loans secured by accounts receivables, inventory, tax credits, and underlying businesses.
Accrued interest receivable on loans totaled $43.5 million at December 31, 2025, and $43.0 million at December 31, 2024. The following table presents interest income reversals, due to loans being placed on nonaccrual status, by loan segment for the years ended December 31, 2025, 2024, and 2023:
Year Ended December 31,
202520242023
(Dollars in thousands)
CRE loans$2,129 $2,150 $1,761 
C&I loans1,423 3,655 1,127 
Residential mortgage loans60 10 40 
Consumer and other loans7 — — 
Total$3,619 $5,815 $2,928 
The following table presents the amortized cost of past due loans, including nonaccrual loans past due 30 days or more, by the number of days past due at December 31, 2025 and 2024, by loan segment:
 December 31, 2025December 31, 2024
 30-59 Days
Past Due 		60-89 Days 
Past Due 		90 or More Days
Past Due 		Total
Past Due		30-59 Days
Past Due 		60-89 Days 
Past Due 		90 or More Days
Past Due 		Total
Past Due
(Dollars in thousands)
CRE loans$9,403 $4,129 $44,560 $58,092 $1,820 $1,917 $6,021 $9,758 
C&I loans2,189 759 22,449 25,397 2,516 10,250 23,079 35,845 
Residential mortgage loans5,994 5,703 8,052 19,749 5,926 5,445 2,845 14,216 
Consumer and other loans1,504 — 223 1,727 190 289 109 588 
Total Past Due$19,090 $10,591 $75,284 $104,965 $10,452 $17,901 $32,054 $60,407 
The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, including, but not limited to, current financial information, historical payment experience, credit documentation, public information, and current economic trends. This analysis is performed at least on a quarterly basis. Homogeneous loans (i.e., home mortgage loans, home equity lines of credit, overdraft loans, express business loans, and automobile loans) risk ratings are primarily driven by the number of days past due.
The following tables present the amortized cost basis of loans receivable by segment, risk rating, and year of origination, renewal, or major modification at December 31, 2025 and 2024.
December 31, 2025
Term Loan by Origination YearRevolving LoansRevolving Loans Converted to Term LoansTotal
20252024202320222021Prior
(Dollars in thousands)
CRE loans
Pass$1,430,615 $802,249 $429,368 $2,058,865 $1,691,770 $1,828,027 $93,163 $11,046 $8,345,103 
Special mention20 4,282 13,280 13,088 7,027 7,358 603 — 45,658 
Substandard— 1,548 4,478 30,030 32,104 35,587 — — 103,747 
Subtotal$1,430,635 $808,079 $447,126 $2,101,983 $1,730,901 $1,870,972 $93,766 $11,046 $8,494,508 
Year-to-date gross charge offs$— $— $— $100 $— $1,461 $— $— $1,561 
C&I loans
Pass$1,236,925 $711,374 $244,744 $427,331 $221,747 $72,314 $607,783 $2,951 $3,525,169 
Special mention238 1,848 10,513 10,426 990 815 22,015 — 46,845 
Substandard7,506 25,230 33,998 4,756 29,288 589 12,863 — 114,230 
Doubtful/Loss— — 2,360 23,271 — — — — 25,631 
Subtotal$1,244,669 $738,452 $291,615 $465,784 $252,025 $73,718 $642,661 $2,951 $3,711,875 
Year-to-date gross charge offs$4,190 $263 $11,409 $12,326 $448 $4,033 $— $— $32,669 
Residential mortgage loans
Pass$487,906 $307,380 $140,012 $418,492 $418,904 $654,564 $— $— $2,427,258 
Special mention— — — — — — — — — 
Substandard— — 825 1,368 1,980 9,025 — — 13,198 
Subtotal$487,906 $307,380 $140,837 $419,860 $420,884 $663,589 $— $— $2,440,456 
Year-to-date gross charge offs$— $— $— $— $— $— $— $— $— 
Consumer and other loans
Pass$12,555 $9,512 $2,335 $2,299 $140 $2,319 $23,206 $— $52,366 
Special mention— — — — — — 1,500 — 1,500 
Substandard— — 50 — — 257 — — 307 
Subtotal$12,555 $9,512 $2,385 $2,299 $140 $2,576 $24,706 $— $54,173 
Year-to-date gross charge offs$— $— $— $— $— $— $1,087 $— $1,087 
Total loans
Pass$3,168,001 $1,830,515 $816,459 $2,906,987 $2,332,561 $2,557,224 $724,152 $13,997 $14,349,896 
Special mention258 6,130 23,793 23,514 8,017 8,173 24,118 — 94,003 
Substandard7,506 26,778 39,351 36,154 63,372 45,458 12,863 — 231,482 
Doubtful/Loss— — 2,360 23,271 — — — — 25,631 
Total$3,175,765 $1,863,423 $881,963 $2,989,926 $2,403,950 $2,610,855 $761,133 $13,997 $14,701,012 
Total year-to-date gross charge offs$4,190 $263 $11,409 $12,426 $448 $5,494 $1,087 $— $35,317 
December 31, 2024
Term Loan by Origination YearRevolving LoansTotal
20242023202220212020Prior
(Dollars in thousands)
CRE loans
Pass$866,696 $564,267 $2,316,371 $1,885,509 $1,111,807 $1,535,735 $117,265 $8,397,650 
Special mention— 15,000 9,879 7,800 1,853 8,778 799 44,109 
Substandard— 966 4,908 32,863 5,469 41,043 — 85,249 
Subtotal$866,696 $580,233 $2,331,158 $1,926,172 $1,119,129 $1,585,556 $118,064 $8,527,008 
Year-to-date gross charge offs$— $— $165 $— $101 $842 $— $1,108 
C&I loans
Pass$1,426,813 $494,432 $743,004 $348,107 $102,725 $43,377 $495,141 $3,653,599 
Special mention1,773 16,116 23,831 24,197 — 14,692 54,355 134,964 
Substandard11,990 7,774 19,829 37,320 113 862 55,330 133,218 
Doubtful/Loss211 17,446 28,158 — — — — 45,815 
Subtotal$1,440,787 $535,768 $814,822 $409,624 $102,838 $58,931 $604,826 $3,967,596 
Year-to-date gross charge offs$— $2,214 $27,239 $107 $— $102 $— $29,662 
Residential mortgage loans
Pass$286,539 $82,682 $344,940 $239,124 $1,320 $121,287 $— $1,075,892 
Special mention— — — — — — — — 
Substandard— — — 968 1,803 3,796 — 6,567 
Subtotal$286,539 $82,682 $344,940 $240,092 $3,123 $125,083 $— $1,082,459 
Year-to-date gross charge offs$— $— $— $— $— $— $— $— 
Consumer and other loans
Pass$6,386 $642 $192 $162 $875 $8,318 $24,587 $41,162 
Special mention— — — — — — — — 
Substandard— — — — — 47 — 47 
Subtotal$6,386 $642 $192 $162 $875 $8,365 $24,587 $41,209 
Year-to-date gross charge offs$— $— $— $— $— $— $318 $318 
Total loans
Pass$2,586,434 $1,142,023 $3,404,507 $2,472,902 $1,216,727 $1,708,717 $636,993 $13,168,303 
Special mention1,773 31,116 33,710 31,997 1,853 23,470 55,154 179,073 
Substandard11,990 8,740 24,737 71,151 7,385 45,748 55,330 225,081 
Doubtful/Loss211 17,446 28,158 — — — — 45,815 
Total$2,600,408 $1,199,325 $3,491,112 $2,576,050 $1,225,965 $1,777,935 $747,477 $13,618,272 
Total year-to-date gross charge offs$— $2,214 $27,404 $107 $101 $944 $318 $31,088 
For the year ended December 31, 2024, there were no revolving loans converted to term loans.
The Company may reclassify loans held for investment to loans held for sale in the event that the Company plans to sell loans that were originated with the intent to hold to maturity. Loans transferred from held for investment to held for sale are carried at the lower of cost or fair value. The breakdown of loans by segment that were reclassified from held for investment to held for sale for the years ended December 31, 2025, 2024, and 2023 is presented in the following table:
Year Ended December 31,
202520242023
Transfer of loans held for investment to held for sale(Dollars in thousands)
CRE loans$57,145 $154,451 $114,186 
C&I loans194,192 101,007 307,209 
Consumer loans6,329 — — 
Total$257,666 $255,458 $421,395 
Loan Modifications to Borrowers Experiencing Financial Difficulty
A summary of loans outstanding as of the period ends presented, that were modified to borrowers experiencing financial difficulty for the periods presented, disaggregated by loan segment and type of modification, is shown in the tables below:
 
Year Ended December 31, 2025
 
CRE LoansC&I LoansResidential Mortgage LoansConsumer and Other LoansTotal
 
(Dollars in thousands)
Payment delay$— $— $8,628 $— $8,628 
Term extension2,423 11,834 — — 14,257 
Combination of term extension & interest rate reduction— 15,686 — — 15,686 
Total Loan Modifications$2,423 $27,520 $8,628 $— $38,571 
% of Loan Segment0.03 %0.74 %0.35 %— %0.26 %
 
Year Ended December 31, 2024
 
CRE LoansC&I LoansResidential Mortgage LoansConsumer and Other LoansTotal
 
(Dollars in thousands)
Payment delay$— $21,136 $— $— $21,136 
Term extension— 50,148 — — 50,148 
Total Loan Modifications$— $71,284 $— $— $71,284 
% of Loan Segment— %1.80 %— %— %0.52 %
The following table describes the financial effect of the loan modifications made to borrowers experiencing financial difficulty for the periods presented:
Financial Effect
Modification & Loan TypesDescription of Financial EffectYear Ended December 31, 2025Year Ended December 31, 2024
Payment delay
C&I loansLength of payment delay by a weighted average of:N/A0.8 years
Residential mortgage loansLength of payment delay by a weighted average of:0.3 yearsN/A
Term extension
CRE loansExtended term by a weighted average of:0.3 yearsN/A
C&I loansExtended term by a weighted average of:0.3 years0.0 years
Combination of term extension & interest rate reduction
C&I loansExtended term by a weighted average of:0.5 yearsN/A
And interest rate reduced by a weighted average of:3.8 %N/A
The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following tables present the amortized cost basis of modified loans that, within 12 months of the modification date, experienced a subsequent default during the periods presented:
 
Year Ended December 31, 2025
 
CRE LoansC&I LoansResidential Mortgage LoansConsumer and Other LoansTotal
 
(Dollars in thousands)
Payment delay$— $— $4,757 $— $4,757 
Term extension— 7,114 — — 7,114 
Total$— $7,114 $4,757 $— $11,871 
 
Year Ended December 31, 2024
 
CRE LoansC&I LoansResidential Mortgage LoansConsumer and Other LoansTotal
 
(Dollars in thousands)
Term extension$— $4,800 $— $— $4,800 
Total$— $4,800 $— $— $4,800 
Related Party Loans
In the ordinary course of business, the Company enters into loan transactions with certain of its directors and executives or associates of such directors or executives (“Related Parties”). All loans to Related Parties were made at substantially the same terms and conditions at the time of origination as other originated loans to borrowers that were not affiliated with the Company. All loans to Related Parties were current at December 31, 2025 and 2024, and the outstanding principal balance at December 31, 2025 and 2024, was $82.4 million and $84.0 million, respectively. Loans to Related Parties consisted of $80.9 million in CRE loans and $1.5 million in C&I loans at December 31, 2025, compared with $84.0 million in CRE loans at December 31, 2024. The decrease in Related Party loans from December 31, 2024 to December 31, 2025, was due to principal paydowns and payoffs of $1.6 million.