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Loans and Allowance for Credit Losses on Loans
 3 Months Ended
Mar. 31, 2026
Receivables [Abstract]  
Loans and Allowance for Credit Losses on Loans Loans and Allowance for Credit Losses on Loans
Loans consist of the following at the dates indicated(1):
March 31, 2026December 31, 2025
Commercial real estate
Construction and land development$317,497 $277,028 
Commercial real estate – owner occupied527,375 562,049 
Commercial real estate – non-owner occupied823,672 832,502 
Multifamily109,564 110,912 
Total commercial real estate1,778,108 1,782,491 
Commercial
Commercial and industrial392,114 378,686 
Equipment finance286,455 311,356 
Municipal leases167,371 166,396 
Total commercial845,940 856,438 
Residential real estate
Construction and land development48,715 45,617 
One-to-four family619,735 633,511 
HELOCs218,283 217,310 
Total residential real estate886,733 896,438 
Consumer35,799 42,787 
Total loans, net of deferred loan fees and costs3,546,580 3,578,154 
Allowance for credit losses – loans(40,607)(41,479)
Loans, net$3,505,973 $3,536,675 
(1)    March 31, 2026 and December 31, 2025 accrued interest receivable of $13,848 and $15,305 was accounted for separately from the amortized cost basis.
All qualifying one-to-four family loans, HELOCs, commercial real estate loans and FHLB of Atlanta stock are pledged as collateral by a blanket pledge to secure outstanding FHLB advances.
Loans are made to the Company's executive officers, directors and their associates during the ordinary course of business. The aggregate amount of loans to related parties totaled $0 at both March 31, 2026 and December 31, 2025. In relation to these loans are unfunded commitments that totaled approximately $3 at both March 31, 2026 and December 31, 2025.
Loans are monitored for credit quality on a recurring basis and the composition of the loans outstanding by credit quality indicator is provided below. Loan credit quality indicators are developed through review of individual borrowers on an ongoing basis. Generally, loans are monitored for performance on a quarterly basis with the credit quality indicators adjusted as needed. The indicators represent the rating for loans as of the date presented based on the most recent assessment performed. These credit quality indicators are defined as follows:
Pass – A pass rated loan is not adversely classified because it does not display any of the characteristics for adverse classification.
Special Mention – A special mention loan has potential weaknesses that deserve management’s close attention. If left uncorrected, such potential weaknesses may result in deterioration of the repayment prospects or collateral position at some future date. Special mention loans are not adversely classified and do not warrant adverse classification.
Substandard – A substandard loan is inadequately protected by the current net worth and paying capacity of the obligor, or of the collateral pledged, if any. Loans classified as substandard generally have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. These loans are characterized by the distinct possibility of loss if the deficiencies are not corrected.
Doubtful – A loan classified as doubtful has all the weaknesses inherent in a loan classified substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable, on the basis of currently existing facts, conditions and values.
Loss – Loans classified as loss are considered uncollectible and of such little value that their continuing to be carried as a loan is not warranted. This classification is not necessarily equivalent to no potential for recovery or salvage value, but rather that it is not appropriate to defer a full write-off even though partial recovery may be effected in the future.
The following table presents the credit risk profile by risk grade for commercial real estate, commercial, residential real estate and consumer loans by origination year as of March 31, 2026. Also included in the table detailing loan balances are gross charge-offs for the three months ended March 31, 2026:
Term Loans By Origination Fiscal Year
March 31, 2026202620252024
2023-S(1)
2023PriorRevolvingTotal
Construction and land development
Risk rating
Pass$24,222 $159,926 $75,717 $16,292 $6,398 $26,389 $7,699 $316,643 
Special mention— — — — — — — — 
Substandard— — — — — 854 — 854 
Doubtful
— — — — — — — — 
Loss— — — — — — — — 
Total construction and land development$24,222 $159,926 $75,717 $16,292 $6,398 $27,243 $7,699 $317,497 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Commercial real estate – owner occupied
Risk rating
Pass$16,924 $74,363 $51,786 $38,845 $57,510 $266,431 $4,820 $510,679 
Special mention— — — — 656 1,745 — 2,401 
Substandard— — 1,389 1,751 924 8,091 — 12,155 
Doubtful— — — — 1,896 240 — 2,136 
Loss— — — — — 4 — 4 
Total commercial real estate – owner occupied$16,924 $74,363 $53,175 $40,596 $60,986 $276,511 $4,820 $527,375 
Current period gross charge-offs$— $— $— $— $— $15 $— $15 
Commercial real estate – non-owner occupied
Risk rating
Pass$22,938 $85,077 $52,368 $12,187 $92,851 $539,546 $6,079 $811,046 
Special mention— — — — 753 349 — 1,102 
Substandard— — — — 2,591 8,933 — 11,524 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total commercial real estate – non-owner occupied$22,938 $85,077 $52,368 $12,187 $96,195 $548,828 $6,079 $823,672 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Multifamily
Risk rating
Pass$2,271 $9,288 $15,084 $5,615 $4,848 $71,176 $— $108,282 
Special mention— — — — — 234 — 234 
Substandard— — — — — 1,048 — 1,048 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total multifamily$2,271 $9,288 $15,084 $5,615 $4,848 $72,458 $— $109,564 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Total commercial real estate
Risk rating
Pass$66,355 $328,654 $194,955 $72,939 $161,607 $903,542 $18,598 $1,746,650 
Special mention— — — — 1,409 2,328 — 3,737 
Substandard— — 1,389 1,751 3,515 18,926 — 25,581 
Doubtful— — — — 1,896 240 — 2,136 
Loss— — — — — 4 — 4 
Total commercial real estate$66,355 $328,654 $196,344 $74,690 $168,427 $925,040 $18,598 $1,778,108 
Total current period gross charge-offs$— $— $— $— $— $15 $— $15 
(1)As previously announced, on July 24, 2023, the Board of Directors approved a change in the Company's fiscal year end from June 30 to December 31. "2023-S" represents the six-month transition period ended December 31, 2023. All subsequent periods are based on a calendar year end.
Term Loans By Origination Fiscal Year
March 31, 2026202620252024
2023-S(1)
2023PriorRevolvingTotal
Commercial and industrial
Risk rating
Pass$10,716 $104,796 $65,915 $30,404 $24,733 $39,540 $93,755 $369,859 
Special mention— 388 36 — 539 2,713 2,419 6,095 
Substandard— — 4,142 2,954 701 5,410 396 13,603 
Doubtful
— — 506 — 124 1,876 — 2,506 
Loss— — 51 — — — — 51 
Total commercial and industrial$10,716 $105,184 $70,650 $33,358 $26,097 $49,539 $96,570 $392,114 
Current period gross charge-offs$— $— $— $— $— $346 $— $346 
Equipment finance
Risk rating
Pass$11,985 $58,437 $70,082 $38,676 $61,481 $34,750 $— $275,411 
Special mention— 556 141 256 2,116 297 — 3,366 
Substandard— 504 630 281 1,990 1,166 — 4,571 
Doubtful— 445 330 287 845 952 — 2,859 
Loss— — — — 248 — — 248 
Total equipment finance$11,985 $59,942 $71,183 $39,500 $66,680 $37,165 $— $286,455 
Current period gross charge-offs$— $414 $124 $23 $582 $572 $— $1,715 
Municipal leases
Risk rating
Pass$6,480 $20,468 $29,382 $14,539 $19,436 $77,066 $— $167,371 
Special mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total municipal leases$6,480 $20,468 $29,382 $14,539 $19,436 $77,066 $— $167,371 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Total commercial
Risk rating
Pass$29,181 $183,701 $165,379 $83,619 $105,650 $151,356 $93,755 $812,641 
Special mention— 944 177 256 2,655 3,010 2,419 9,461 
Substandard— 504 4,772 3,235 2,691 6,576 396 18,174 
Doubtful— 445 836 287 969 2,828 — 5,365 
Loss— — 51 — 248 — — 299 
Total commercial$29,181 $185,594 $171,215 $87,397 $112,213 $163,770 $96,570 $845,940 
Total current period gross charge-offs$— $414 $124 $23 $582 $918 $— $2,061 
Term Loans By Origination Fiscal Year
March 31, 2026202620252024
2023-S(1)
2023PriorRevolvingTotal
Construction and land development
Risk rating
Pass$2,906 $30,257 $4,240 $1,066 $4,220 $6,026 $— $48,715 
Special mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total construction and land development$2,906 $30,257 $4,240 $1,066 $4,220 $6,026 $— $48,715 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
One-to-four family
Risk rating
Pass$13,424 $46,340 $36,309 $19,658 $146,815 $341,383 $6,281 $610,210 
Special mention— — — — — 273 — 273 
Substandard— — 657 1,244 2,004 5,335 — 9,240 
Doubtful— — — — — 12 — 12 
Loss— — — — — — — — 
Total one-to-four family$13,424 $46,340 $36,966 $20,902 $148,819 $347,003 $6,281 $619,735 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
HELOCs
Risk rating
Pass$— $— $— $— $— $— $208,261 $208,261 
Special mention— — — — — — — — 
Substandard— — — — — — 10,022 10,022 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total HELOCs$— $— $— $— $— $— $218,283 $218,283 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Total residential real estate
Risk rating
Pass$16,330 $76,597 $40,549 $20,724 $151,035 $347,409 $214,542 $867,186 
Special mention— — — — — 273 — 273 
Substandard— — 657 1,244 2,004 5,335 10,022 19,262 
Doubtful— — — — — 12 — 12 
Loss— — — — — — — — 
Total residential real estate$16,330 $76,597 $41,206 $21,968 $153,039 $353,029 $224,564 $886,733 
Total current period gross charge-offs$— $— $— $— $— $— $— $— 
Term Loans By Origination Fiscal Year
March 31, 2026202620252024
2023-S(1)
2023PriorRevolvingTotal
Total consumer
Risk rating
Pass$491 $1,035 $2,328 $9,442 $15,849 $5,383 $244 $34,772 
Special mention— — — — — — — — 
Substandard— 30 50 220 518 185 24 1,027 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total consumer$491 $1,065 $2,378 $9,662 $16,367 $5,568 $268 $35,799 
Total current period gross charge-offs$— $3 $— $52 $155 $46 $— $256 
The following table presents the credit risk profile by risk grade for commercial real estate, commercial, residential real estate and consumer loans by origination year as of December 31, 2025. Also included in the table detailing loan balances are gross charge-offs for the year ended December 31, 2025:
Term Loans By Origination Fiscal Year
December 31, 202520252024
2023-S(1)
20232022PriorRevolvingTotal
Construction and land development
Risk rating
Pass$133,327 $85,217 $21,775 $5,722 $16,693 $11,108 $2,805 $276,647 
Special mention— — — — — — — — 
Substandard— — — — 381 — — 381 
Doubtful
— — — — — — — — 
Loss— — — — — — — — 
Total construction and land development$133,327 $85,217 $21,775 $5,722 $17,074 $11,108 $2,805 $277,028 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Commercial real estate – owner occupied
Risk rating
Pass$78,784 $52,556 $42,988 $60,162 $84,571 $218,775 $5,589 $543,425 
Special mention— — — 655 241 2,375 — 3,271 
Substandard— 1,406 918 162 4,949 5,767 — 13,202 
Doubtful— — — 1,895 244 12 — 2,151 
Loss— — — — — — — — 
Total commercial real estate – owner occupied$78,784 $53,962 $43,906 $62,874 $90,005 $226,929 $5,589 $562,049 
Current period gross charge-offs$— $— $— $138 $90 $— $— $228 
Commercial real estate – non-owner occupied
Risk rating
Pass$77,184 $55,342 $12,561 $91,992 $131,895 $433,461 $8,523 $810,958 
Special mention— — — 754 — 9,226 — 9,980 
Substandard— — — 2,591 — 8,973 — 11,564 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total commercial real estate – non-owner occupied$77,184 $55,342 $12,561 $95,337 $131,895 $451,660 $8,523 $832,502 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Multifamily
Risk rating
Pass$9,361 $15,105 $5,638 $4,881 $9,916 $65,560 $— $110,461 
Special mention— — — — — 285 — 285 
Substandard— — — — — 166 — 166 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total multifamily$9,361 $15,105 $5,638 $4,881 $9,916 $66,011 $— $110,912 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Total commercial real estate
Risk rating
Pass$298,656 $208,220 $82,962 $162,757 $243,075 $728,904 $16,917 $1,741,491 
Special mention— — — 1,409 241 11,886 — 13,536 
Substandard— 1,406 918 2,753 5,330 14,906 — 25,313 
Doubtful— — — 1,895 244 12 — 2,151 
Loss— — — — — — — — 
Total commercial real estate$298,656 $209,626 $83,880 $168,814 $248,890 $755,708 $16,917 $1,782,491 
Total current period gross charge-offs$— $— $— $138 $90 $— $— $228 
(1)As previously announced, on July 24, 2023, the Board of Directors approved a change in the Company's fiscal year end from June 30 to December 31. "2023-S" represents the six-month transition period ended December 31, 2023. All subsequent periods are based on a calendar year end.
Term Loans By Origination Fiscal Year
December 31, 202520252024
2023-S(1)
20232022PriorRevolvingTotal
Commercial and industrial
Risk rating
Pass$101,886 $73,327 $33,005 $29,181 $24,786 $20,049 $75,308 $357,542 
Special mention392 290 2,651 910 312 2,478 2,497 9,530 
Substandard— 3,157 — 252 1,929 3,643 100 9,081 
Doubtful
— 505 — 122 89 1,794 23 2,533 
Loss— — — — — — — — 
Total commercial and industrial$102,278 $77,279 $35,656 $30,465 $27,116 $27,964 $77,928 $378,686 
Current period gross charge-offs$— $151 $362 $241 $1,318 $472 $— $2,544 
Equipment finance
Risk rating
Pass$63,176 $76,224 $43,547 $73,355 $31,444 $13,466 $— $301,212 
Special mention172 151 255 615 232 185 — 1,610 
Substandard673 1,117 173 2,096 871 417 — 5,347 
Doubtful— 57 415 1,353 1,067 295 — 3,187 
Loss— — — — — — — — 
Total equipment finance$64,021 $77,549 $44,390 $77,419 $33,614 $14,363 $— $311,356 
Current period gross charge-offs$— $167 $454 $2,829 $2,711 $466 $— $6,627 
Municipal leases
Risk rating
Pass$19,195 $29,939 $15,546 $20,701 $18,934 $62,081 $— $166,396 
Special mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total municipal leases$19,195 $29,939 $15,546 $20,701 $18,934 $62,081 $— $166,396 
Current period gross charge-offs$— $— $— $— $— $— $— $— 
Total commercial
Risk rating
Pass$184,257 $179,490 $92,098 $123,237 $75,164 $95,596 $75,308 $825,150 
Special mention564 441 2,906 1,525 544 2,663 2,497 11,140 
Substandard673 4,274 173 2,348 2,800 4,060 100 14,428 
Doubtful— 562 415 1,475 1,156 2,089 23 5,720 
Loss— — — — — — — — 
Total commercial$185,494 $184,767 $95,592 $128,585 $79,664 $104,408 $77,928 $856,438 
Total current period gross charge-offs$— $318 $816 $3,070 $4,029 $938 $— $9,171 
Term Loans By Origination Fiscal Year
December 31, 202520252024
2023-S(1)
20232022PriorRevolvingTotal
Construction and land development
Risk rating
Pass$24,620 $7,350 $1,054 $5,753 $4,173 $2,254 $— $45,204 
Special mention— — — — — — — — 
Substandard— — 413 — — — — 413 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total construction and land development$24,620 $7,350 $1,467 $5,753 $4,173 $2,254 $— $45,617 
Current period gross charge-offs$— $— $— $— $— $132 $— $132 
One-to-four family
Risk rating
Pass$45,062 $40,995 $22,428 $152,935 $139,276 $213,367 $11,814 $625,877 
Special mention— — — — 21 282 — 303 
Substandard— 661 835 1,074 764 3,984 — 7,318 
Doubtful— — — — — 13 — 13 
Loss— — — — — — — — 
Total one-to-four family$45,062 $41,656 $23,263 $154,009 $140,061 $217,646 $11,814 $633,511 
Current period gross charge-offs$— $— $— $— $— $50 $— $50 
HELOCs
Risk rating
Pass$— $— $— $— $— $— $208,402 $208,402 
Special mention— — — — — — — — 
Substandard— — — — — — 8,908 8,908 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total HELOCs$— $— $— $— $— $— $217,310 $217,310 
Current period gross charge-offs$— $— $— $— $— $— $40 $40 
Total residential real estate
Risk rating
Pass$69,682 $48,345 $23,482 $158,688 $143,449 $215,621 $220,216 $879,483 
Special mention— — — — 21 282 — 303 
Substandard— 661 1,248 1,074 764 3,984 8,908 16,639 
Doubtful— — — — — 13 — 13 
Loss— — — — — — — — 
Total residential real estate$69,682 $49,006 $24,730 $159,762 $144,234 $219,900 $229,124 $896,438 
Total current period gross charge-offs$— $— $— $— $— $182 $40 $222 
Term Loans By Origination Fiscal Year
December 31, 202520252024
2023-S(1)
20232022PriorRevolvingTotal
Total consumer
Risk rating
Pass$2,346 $2,688 $10,866 $18,552 $4,392 $2,463 $244 $41,551 
Special mention— — — — — — — — 
Substandard— 31 168 644 127 247 16 1,233 
Doubtful— 1 — — 2 — — 3 
Loss— — — — — — — — 
Total consumer$2,346 $2,720 $11,034 $19,196 $4,521 $2,710 $260 $42,787 
Total current period gross charge-offs$3 $68 $131 $306 $65 $79 $— $652 
The following tables present aging analyses of past due loans (including nonaccrual loans) by segment and class as of the dates indicated.
Past DueTotal Loans
30-89 Days90 Days+
Total(1)
Current
March 31, 2026
Commercial real estate
Construction and land development$— $854 $854 $316,643 $317,497 
Commercial real estate – owner occupied7,910 3,096 11,006 516,369 527,375 
Commercial real estate – non-owner occupied2,150 3,856 6,006 817,666 823,672 
Multifamily839 — 839 108,725 109,564 
Total commercial real estate10,899 7,806 18,705 1,759,403 1,778,108 
Commercial
Commercial and industrial5,174 6,740 11,914 380,200 392,114 
Equipment finance6,977 4,108 11,085 275,370 286,455 
Municipal leases569 — 569 166,802 167,371 
Total commercial12,720 10,848 23,568 822,372 845,940 
Residential real estate
Construction and land development290 — 290 48,425 48,715 
One-to-four family29,089 2,461 31,550 588,185 619,735 
HELOCs3,894 5,971 9,865 208,418 218,283 
Total residential real estate33,273 8,432 41,705 845,028 886,733 
Consumer1,250 222 1,472 34,327 35,799 
Total loans$58,142 $27,308 $85,450 $3,461,130 $3,546,580 
Past Due(2)
Total Loans
30-89 Days90 Days+
Total(1)
Current
December 31, 2025
Commercial real estate
Construction and land development$— $381 $381 $276,647 $277,028 
Commercial real estate – owner occupied7,434 4,352 11,786 550,263 562,049 
Commercial real estate – non-owner occupied1,479 5,422 6,901 825,601 832,502 
Multifamily— — — 110,912 110,912 
Total commercial real estate8,913 10,155 19,068 1,763,423 1,782,491 
Commercial
Commercial and industrial1,625 8,306 9,931 368,755 378,686 
Equipment finance8,185 5,501 13,686 297,670 311,356 
Municipal leases— — — 166,396 166,396 
Total commercial9,810 13,807 23,617 832,821 856,438 
Residential real estate
Construction and land development699 — 699 44,918 45,617 
One-to-four family25,822 2,774 28,596 604,915 633,511 
HELOCs3,211 5,393 8,604 208,706 217,310 
Total residential real estate29,732 8,167 37,899 858,539 896,438 
Consumer1,441 361 1,802 40,985 42,787 
Total loans$49,896 $32,490 $82,386 $3,495,768 $3,578,154 
(1)Of the past due totals presented above, $12,570 and $14,307 of these balances were fully guaranteed by the SBA as of March 31, 2026 and December 31, 2025, respectively.
(2)Reflects a change in prior period disclosures where, for loans with monthly payments, they were previously considered past due when a loan is in arrears two or more payments. Under the updated disclosure, these loans are considered past due when the loan is in arrears one or more payments. The most significant impact was to the "30-89 Days" column where the total balance increased by $37,194, with the one-to-four family residential real estate portfolio making up $22,393 of the change.
The following table presents the recorded investment in loans on nonaccrual status, by segment and class, including restructured loans. It also includes interest income recognized on nonaccrual loans for the three months ended March 31, 2026.
March 31, 2026(1)
December 31, 2025(1)
90 Days+ &
Still Accruing as of March 31, 2026
Nonaccrual with No ACL as of March 31, 2026
Interest Income Recognized
Commercial real estate
Construction and land development$853 $381 $— $— $— 
Commercial real estate – owner occupied11,256 10,467 — 2,819 219 
Commercial real estate – non-owner occupied6,704 6,566 — 1,130 147 
Multifamily— — — — — 
Total commercial real estate18,813 17,414 — 3,949 366 
Commercial
Commercial and industrial10,578 9,786 — 239 68 
Equipment finance6,097 6,690 — 268 62 
Municipal leases— — — — — 
Total commercial16,675 16,476 — 507 130 
Residential real estate
Construction and land development— — — — — 
One-to-four family3,632 2,961 — — 42 
HELOCs7,140 6,523 — — 63 
Total residential real estate10,772 9,484 — — 105 
Consumer479 402 — — 10 
Total loans$46,739 $43,776 $— $4,456 $611 
(1)Of the nonaccrual totals presented above, $16,348 and $14,885 of these balances were fully guaranteed by the SBA as of March 31, 2026 and December 31, 2025, respectively.
The following tables present analyses of the ACL on loans by segment for the periods indicated below. In addition to the provision (benefit) for credit losses on loans presented below, a benefit of $575 and provision of $740 for off-balance sheet credit exposures were recorded for the three months ended March 31, 2026 and 2025, respectively.
Three Months Ended March 31, 2026
Commercial Real EstateCommercialResidential Real EstateConsumerTotal
Balance at beginning of period$19,298 $13,331 $8,492 $358 $41,479 
Provision (benefit) for credit losses498 506 (215)156 945 
Charge-offs(15)(2,061)— (256)(2,332)
Recoveries— 271 175 69 515 
Net (charge-offs) recoveries(15)(1,790)175 (187)(1,817)
Balance at end of period$19,781 $12,047 $8,452 $327 $40,607 
Three Months Ended March 31, 2025
Commercial Real EstateCommercialResidential Real EstateConsumerTotal
Balance at beginning of period$19,284 $15,267 $9,664 $1,070 $45,285 
Provision (benefit) for credit losses243 890 (338)5 800 
Charge-offs— (1,610)(10)(176)(1,796)
Recoveries38 316 14 85 453 
Net (charge-offs) recoveries38 (1,294)4 (91)(1,343)
Balance at end of period$19,565 $14,863 $9,330 $984 $44,742 
A loan is considered to be collateral dependent when the borrower is experiencing financial difficulty and the repayment is expected to be provided substantially through the operation or sale of the collateral. The following tables provide a breakdown between loans identified as CDAs and non-CDAs, by segment and class, as well as collateral coverage for those loans at the dates indicated below:
Type and Extent of Collateral Securing CDAsNon-CDAs
March 31, 2026Residential PropertyInvestment PropertyCommercial PropertyBusiness AssetsTotal
Commercial real estate
Construction and land development$— $— $— $— $317,497 $317,497 
Commercial real estate – owner occupied— — 3,422 — 523,953 527,375 
Commercial real estate – non-owner occupied— — 4,686 — 818,986 823,672 
Multifamily— — — — 109,564 109,564 
Total commercial real estate— — 8,108 — 1,770,000 1,778,108 
Commercial
Commercial and industrial— — — — 392,114 392,114 
Equipment finance— — — 977 285,478 286,455 
Municipal leases— — — — 167,371 167,371 
Total commercial— — — 977 844,963 845,940 
Residential real estate
Construction and land development— — — — 48,715 48,715 
One-to-four family— — — — 619,735 619,735 
HELOCs— — — — 218,283 218,283 
Total residential real estate— — — — 886,733 886,733 
Consumer— — — — 35,799 35,799 
Total$— $— $8,108 $977 $3,537,495 $3,546,580 
Total collateral value$— $— $9,496 $861 
Type and Extent of Collateral Securing CDAsNon-CDAs
December 31, 2025Residential PropertyInvestment PropertyCommercial PropertyBusiness AssetsTotal
Commercial real estate
Construction and land development$— $— $— $— $277,028 $277,028 
Commercial real estate – owner occupied— — 3,532 — 558,517 562,049 
Commercial real estate – non-owner occupied— — 4,699 — 827,803 832,502 
Multifamily— — — — 110,912 110,912 
Total commercial real estate— — 8,231 — 1,774,260 1,782,491 
Commercial
Commercial and industrial— — — — 378,686 378,686 
Equipment finance— — — 2,087 309,269 311,356 
Municipal leases— — — — 166,396 166,396 
Total commercial— — — 2,087 854,351 856,438 
Residential real estate
Construction and land development— — — — 45,617 45,617 
One-to-four family— — — — 633,511 633,511 
HELOCs— — — — 217,310 217,310 
Total residential real estate— — — — 896,438 896,438 
Consumer— — — — 42,787 42,787 
Total$— $— $8,231 $2,087 $3,567,836 $3,578,154 
Total collateral value$— $— $9,605 $1,299 
Modifications to Borrowers Experiencing Financial Difficulty
The Company modifies loans to borrowers experiencing financial difficulty by providing principal forgiveness, a term extension, an other-than-insignificant payment delay or interest rate adjustments. In some cases, the Company provides multiple types of modifications on one loan. Typically, one type of modification, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another modification, such as principal forgiveness, may be granted. For loans included in the combination columns in the table below, multiple types of modifications have been made on the same loan within the current reporting period.
The following tables present the amortized cost basis of loans at March 31, 2026 and 2025, that were both experiencing financial difficulty and modified during the three months ended March 31, 2026 and 2025, by class and type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial difficulty as compared to the amortized cost basis of each class of financing receivable is also presented.
Three Months Ended March 31, 2026
Principal ForgivenessPayment DelayTerm ExtensionInterest Rate AdjustmentCombination Term Extension & Principal ForgivenessCombination Term Extension & Interest Rate Reduction% of Total Class of Financing Receivable
Commercial real estate
Commercial real estate – owner occupied$— $780 $— $1,333 $— $— 0.40 %
Commercial real estate – non-owner occupied— 1,700 — — — — 0.21 
Commercial loans
Commercial and industrial— 2,580 140 — — — 0.69 
Total$— $5,060 $140 $1,333 $— $— 0.18 %
Three Months Ended March 31, 2025
Principal ForgivenessPayment DelayTerm ExtensionInterest Rate AdjustmentCombination Term Extension & Principal ForgivenessCombination Term Extension & Interest Rate Reduction% of Total Class of Financing Receivable
Commercial real estate
Commercial real estate – owner occupied$— $774 $— $— $— $— 0.14 %
Commercial loans
Commercial and industrial— 908 374 115 — — 0.40 
Total$— $1,682 $374 $115 $— $— 0.06 %
The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the periods indicated below:
Three Months Ended March 31, 2026
Principal ForgivenessWeighted-Average Interest Rate ReductionWeighted-Average Term Extension (Years)
Commercial real estate
Commercial real estate – owner-occupied$— 4.5 %— 
Commercial loans
Commercial and industrial— — 5.0
Total$— 4.5 %5.0
Three Months Ended March 31, 2025
Principal ForgivenessWeighted-Average Interest Rate ReductionWeighted-Average Term Extension (Years)
Commercial loans
Commercial and industrial$— 7.0 %10.0
The following table presents loans that had a payment default during the periods indicated that had previously been modified within the prior twelve months. For purposes of this table, a loan is considered to be in default when it becomes 30 days contractually past due under the modified terms.
Three Months Ended March 31, 2026
Principal ForgivenessPayment DelayTerm ExtensionInterest Rate Adjustment
Commercial loans
Commercial and industrial$— $1,065 $— $— 
Three Months Ended March 31, 2025
Principal ForgivenessPayment DelayTerm ExtensionInterest Rate Adjustment
Commercial real estate
Commercial real estate – owner-occupied$— $675 $— $161 
Commercial loans
Commercial and industrial— — 132 — 
Total$— $675 $132 $161 
Off-Balance Sheet Credit Exposure
The Company maintains a separate reserve for credit losses on off-balance sheet credit exposures, including unfunded loan commitments, which is included in other liabilities on the consolidated balance sheet. The reserve for credit losses on off-balance sheet credit exposures is adjusted as a provision for credit losses in the consolidated statement of income. The estimate includes consideration of the likelihood that funding will occur and an estimate of ECLs on commitments expected to be funded over its estimated life, utilizing the same models and approaches for the Company's other loan portfolio segments described above, as these unfunded commitments share similar risk characteristics as its loan portfolio segments. The Company has identified the unfunded portion of certain lines of credit as unconditionally cancellable credit exposures, meaning the Company can cancel the unfunded commitment at any time. No credit loss estimate is reported for off-balance sheet credit exposures that are unconditionally cancellable by the Company or for undrawn amounts under such arrangements that may be drawn prior to the cancellation of the arrangement. At March 31, 2026 and December 31, 2025, the ACL on off-balance sheet credit exposures included in other liabilities was $3,570 and $4,145, respectively.