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Loans and Allowance for Credit Losses | 3 Months Ended
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Mar. 31, 2026
Receivables [Abstract] |
Loans and Allowance for Credit Losses | Loans and Allowance for Credit Losses The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables. For further discussion on the most significant accounting policies that the Company follows, see Note 1 – “Summary of Significant Accounting Policies” in the “Notes to Consolidated Financial Statements” included in Part II, Item 8 of the 2025 Annual Report. The following table provides information about the principal classes of the loan portfolio at March 31, 2026 and December 31, 2025.
($ in thousands) |  | March 31, 2026 |  | % of Total Loans |  | December 31, 2025 |  | % of Total Loans
Commercial real estate |  | $ | 2,599,815 |  |  | 53.62 | % |  | $ | 2,643,996 |  |  | 53.95 | %
Residential real estate |  | 1,425,733 |  |  | 29.41 |  |  | 1,414,964 |  |  | 28.88 |
Construction |  | 342,835 |  |  | 7.07 |  |  | 344,903 |  |  | 7.04 |
Commercial |  | 220,833 |  |  | 4.56 |  |  | 226,006 |  |  | 4.61 |
Consumer |  | 254,478 |  |  | 5.25 |  |  | 265,912 |  |  | 5.43 |
Credit cards |  | 4,336 |  |  | 0.09 |  |  | 4,521 |  |  | 0.09 |
Total loans |  | 4,848,030 |  |  | 100.00 | % |  | 4,900,302 |  |  | 100.00 | %
Less: allowance for credit losses |  | (58,481) |  |  |  |  | (58,836) |  |  |
Total loans, net |  | $ | 4,789,549 |  |  |  |  | $ | 4,841,466 |  |  |
Loans are stated at their principal amount outstanding, net of any purchase premiums or discounts, deferred fees, and costs. Included in loans were deferred costs, net of fees, of $3.0 million and $3.1 million at March 31, 2026 and December 31, 2025, respectively. At March 31, 2026 and December 31, 2025, loans included $1.42 billion and $1.49 billion, respectively, of aggregate loans that were acquired as part of the acquisitions of Severn Bancorp, Inc. (“Severn”) and The Community Financial Corporation (“TCFC”). These balances are presented net of the related aggregate discounts, which totaled $73.9 million and $78.2 million at March 31, 2026 and December 31, 2025, respectively. The following tables provide information on the amortized cost basis of nonaccrual loans by loan class as of March 31, 2026 and December 31, 2025.
($ in thousands) |  | Nonaccrual With No Allowance For Credit Losses |  | Nonaccrual With An Allowance For Credit Losses |  | Total Nonaccrual Loans
March 31, 2026 |  |  |  |  |  |
Nonaccrual loans: |  |  |  |  |  |
Commercial real estate |  | $ | 40,989 |  |  | $ | 11,292 |  |  | $ | 52,281 |
Residential real estate |  | 8,116 |  |  | 961 |  |  | 9,077 |
Construction |  | 161 |  |  | — |  |  | 161 |
Commercial |  | 256 |  |  | 2,586 |  |  | 2,842 |
Consumer |  | 475 |  |  | 59 |  |  | 534 |
Credit cards |  | — |  |  | 63 |  |  | 63 |
Total |  | $ | 49,997 |  |  | $ | 14,961 |  |  | $ | 64,958 |
Interest income |  | $ | 655 |  |  | $ | 295 |  |  | $ | 950 |
($ in thousands) |  | Nonaccrual With No Allowance For Credit Losses |  | Nonaccrual With An Allowance For Credit Losses |  | Total Nonaccrual Loans
December 31, 2025 |  |  |  |  |  |
Nonaccrual loans: |  |  |  |  |  |
Commercial real estate |  | $ | 6,135 |  |  | $ | 19,498 |  |  | $ | 25,633 |
Residential real estate |  | 9,594 |  |  | 544 |  |  | 10,138 |
Construction |  | 88 |  |  | — |  |  | 88 |
Commercial |  | 2,297 |  |  | 784 |  |  | 3,081 |
Consumer |  | 898 |  |  | 74 |  |  | 972 |
Credit cards |  | — |  |  | 48 |  |  | 48 |
Total |  | $ | 19,012 |  |  | $ | 20,948 |  |  | $ | 39,960 |
Interest income |  | $ | 285 |  |  | $ | 363 |  |  | $ | 648 |
($ in thousands) |  | Nonaccrual Delinquent Loans |  | Nonaccrual Current Loans |  | Total Nonaccrual Loans
March 31, 2026 |  |  |  |  |  |
Nonaccrual loans: |  |  |  |  |  |
Commercial real estate |  | $ | 1,838 |  |  | $ | 50,443 |  |  | $ | 52,281 |
Residential real estate |  | 4,651 |  |  | 4,426 |  |  | 9,077 |
Construction |  | 161 |  |  | — |  |  | 161 |
Commercial |  | — |  |  | 2,842 |  |  | 2,842 |
Consumer |  | 75 |  |  | 459 |  |  | 534 |
Credit cards |  | 63 |  |  | — |  |  | 63 |
Total |  | $ | 6,788 |  |  | $ | 58,170 |  |  | $ | 64,958 |
($ in thousands) |  | Nonaccrual Delinquent Loans |  | Nonaccrual Current Loans |  | Total Nonaccrual Loans
December 31, 2025 |  |  |  |  |  |
Nonaccrual loans: |  |  |  |  |  |
Commercial real estate |  | $ | 2,809 |  |  | $ | 22,824 |  |  | $ | 25,633 |
Residential real estate |  | 3,808 |  |  | 6,330 |  |  | 10,138 |
Construction |  | 88 |  |  | — |  |  | 88 |
Commercial |  | 196 |  |  | 2,885 |  |  | 3,081 |
Consumer |  | 491 |  |  | 481 |  |  | 972 |
Credit cards |  | 32 |  |  | 16 |  |  | 48 |
Total |  | $ | 7,424 |  |  | $ | 32,536 |  |  | $ | 39,960 |
The overall quality of the Company’s loan portfolio is primarily assessed using the Company’s risk-grading scale. This review process is assisted by frequent internal reporting of loan production, loan quality, concentrations of credit, loan delinquencies and nonperforming and potential problem loans. Credit quality indicators are adjusted based on management’s judgment during the quarterly review process. Consumer credit cards are monitored based on a borrower’s payment history. Credit card loans are classified as performing and are typically charged-off no later than 180 days or when, in the opinion of management, the collection of principal or interest is considered doubtful. As of March 31, 2026, there were five credit cards that were evaluated based on economic conditions specific to the loans or borrowers, and were downgraded to substandard and nonperforming. Loans subject to risk rating are graded on a scale of one to ten. Ratings 1 through 6 – Pass – Ratings 1 through 6 have asset risks ranging from excellent-low to adequate. The specific rating assigned considers customer history of earnings, cash flows, liquidity, leverage, capitalization, consistency of debt service coverage, the nature and extent of customer relationship and other relevant specific business factors such as the stability of the industry or market area, changes to management, litigation or unexpected events that could have an impact on risks. Rating 7 – Special Mention – These credits have potential weaknesses due to economic conditions, less than adequate earnings performance or other factors which require the lending officer to direct more than normal attention to the credit. Financing alternatives may be limited and/or command higher risk interest rates. Special mention loan relationships are reviewed at least quarterly. Rating 8 – Substandard – Substandard assets are assets that are inadequately protected by the sound worth or paying capacity of the borrower or of the collateral pledged. Substandard loans are the first adversely classified loans on the Bank’s watchlist. These assets have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the possibility that the Company will sustain some loss if the deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard assets, does not have to exist in individual assets classified substandard. The loans may have a delinquent history or combination of weak collateral, weak guarantor or operating losses. When a loan is assigned to this category, the Company may estimate a specific reserve in the credit loss allowance analysis and/or place the loan on nonaccrual. These assets listed may include assets with histories of repossessions or some that are nonperforming bankruptcies. Substandard loan relationships are reviewed at least quarterly. Rating 9 – Doubtful – Doubtful assets have many of the same characteristics of substandard assets, with the exception that the Company has determined that loss is not only possible but is probable. The amount of loss is not discernible due to factors such as merger, acquisition, or liquidation; a capital injection; a pledge of additional collateral; the sale of assets; or alternative refinancing plans. Credits receiving a doubtful classification are required to be on nonaccrual. Doubtful loan relationships are reviewed at least quarterly. Rating 10 – Loss – Loss assets are uncollectible or of little value. The following table provides information on loan risk ratings as of March 31, 2026 and gross charge-offs during the three months ended March 31, 2026.
|  | Term Loans by Origination Year |  | Revolving loans |  | Revolving converted to term loans |  | Total
($ in thousands) |  | Prior |  | 2022 |  | 2023 |  | 2024 |  | 2025 |  | 2026 |
March 31, 2026 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate
Pass |  | $ | 1,263,079 |  |  | $ | 522,428 |  |  | $ | 218,721 |  |  | $ | 150,567 |  |  | $ | 262,491 |  |  | $ | 19,074 |  |  | $ | 19,093 |  |  | $ | 150 |  |  | $ | 2,455,603 |
Special mention |  | 28,222 |  |  | 50,924 |  |  | 341 |  |  | 272 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 79,759 |
Substandard |  | 26,233 |  |  | 16,287 |  |  | 19,723 |  |  | 1,239 |  |  | 621 |  |  | — |  |  | 350 |  |  | — |  |  | 64,453 |
Total |  | $ | 1,317,534 |  |  | $ | 589,639 |  |  | $ | 238,785 |  |  | $ | 152,078 |  |  | $ | 263,112 |  |  | $ | 19,074 |  |  | $ | 19,443 |  |  | $ | 150 |  |  | $ | 2,599,815 |
Gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Residential real estate
Pass |  | $ | 484,287 |  |  | $ | 272,211 |  |  | $ | 199,154 |  |  | $ | 157,905 |  |  | $ | 123,083 |  |  | $ | 25,120 |  |  | $ | 136,107 |  |  | $ | 40 |  |  | $ | 1,397,907 |
Special mention |  | 16,841 |  |  | 191 |  |  | 504 |  |  | — |  |  | — |  |  | — |  |  | 65 |  |  | — |  |  | 17,601 |
Substandard |  | 7,965 |  |  | 715 |  |  | 316 |  |  | — |  |  | 110 |  |  | — |  |  | 1,119 |  |  | — |  |  | 10,225 |
Total |  | $ | 509,093 |  |  | $ | 273,117 |  |  | $ | 199,974 |  |  | $ | 157,905 |  |  | $ | 123,193 |  |  | $ | 25,120 |  |  | $ | 137,291 |  |  | $ | 40 |  |  | $ | 1,425,733 |
Gross charge-offs |  | $ | (138) |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (4) |  |  | $ | — |  |  | $ | (142) |
Construction
Pass |  | $ | 32,869 |  |  | $ | 6,929 |  |  | $ | 27,791 |  |  | $ | 90,705 |  |  | $ | 151,703 |  |  | $ | 17,237 |  |  | $ | 14,252 |  |  | $ | 946 |  |  | $ | 342,432 |
Special mentions |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Substandard |  | 161 |  |  | — |  |  | — |  |  | — |  |  | 242 |  |  | — |  |  | — |  |  | — |  |  | 403 |
Total |  | $ | 33,030 |  |  | $ | 6,929 |  |  | $ | 27,791 |  |  | $ | 90,705 |  |  | $ | 151,945 |  |  | $ | 17,237 |  |  | $ | 14,252 |  |  | $ | 946 |  |  | $ | 342,835 |
Gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial
Pass |  | $ | 48,218 |  |  | $ | 17,998 |  |  | $ | 14,055 |  |  | $ | 26,743 |  |  | $ | 34,088 |  |  | $ | 5,557 |  |  | $ | 65,685 |  |  | $ | 1,419 |  |  | $ | 213,763 |
Special mention |  | 22 |  |  | 89 |  |  | 95 |  |  | 70 |  |  | 52 |  |  | — |  |  | 83 |  |  | — |  |  | 411 |
Substandard |  | 920 |  |  | 661 |  |  | 484 |  |  | 577 |  |  | 18 |  |  | 290 |  |  | 3,709 |  |  | — |  |  | 6,659 |
Total |  | $ | 49,160 |  |  | $ | 18,748 |  |  | $ | 14,634 |  |  | $ | 27,390 |  |  | $ | 34,158 |  |  | $ | 5,847 |  |  | $ | 69,477 |  |  | $ | 1,419 |  |  | $ | 220,833 |
Gross charge-offs |  | $ | (2) |  |  | $ | (37) |  |  | $ | (149) |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (15) |  |  | $ | — |  |  | $ | (203) |
Consumer
Pass |  | $ | 49,914 |  |  | $ | 83,717 |  |  | $ | 35,458 |  |  | $ | 27,786 |  |  | $ | 44,744 |  |  | $ | 11,598 |  |  | $ | 727 |  |  | $ | — |  |  | $ | 253,944 |
Special mention |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Substandard |  | 8 |  |  | 60 |  |  | 407 |  |  | — |  |  | 59 |  |  | — |  |  | — |  |  | — |  |  | 534 |
Total |  | $ | 49,922 |  |  | $ | 83,777 |  |  | $ | 35,865 |  |  | $ | 27,786 |  |  | $ | 44,803 |  |  | $ | 11,598 |  |  | $ | 727 |  |  | $ | — |  |  | $ | 254,478 |
Gross charge-offs |  | $ | (437) |  |  | $ | (362) |  |  | $ | — |  |  | $ | (17) |  |  | $ | (15) |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (831) |
Total
Pass |  | $ | 1,878,367 |  |  | $ | 903,283 |  |  | $ | 495,179 |  |  | $ | 453,706 |  |  | $ | 616,109 |  |  | $ | 78,586 |  |  | $ | 235,864 |  |  | $ | 2,555 |  |  | $ | 4,663,649 |
Special mention |  | 45,085 |  |  | 51,204 |  |  | 940 |  |  | 342 |  |  | 52 |  |  | — |  |  | 148 |  |  | — |  |  | 97,771 |
Substandard |  | 35,287 |  |  | 17,723 |  |  | 20,930 |  |  | 1,816 |  |  | 1,050 |  |  | 290 |  |  | 5,178 |  |  | — |  |  | 82,274 |
Total loans by risk category |  | $ | 1,958,739 |  |  | $ | 972,210 |  |  | $ | 517,049 |  |  | $ | 455,864 |  |  | $ | 617,211 |  |  | $ | 78,876 |  |  | $ | 241,190 |  |  | $ | 2,555 |  |  | $ | 4,843,694 |
Total gross charge-offs |  | $ | (577) |  |  | $ | (399) |  |  | $ | (149) |  |  | $ | (17) |  |  | $ | (15) |  |  | $ | — |  |  | $ | (19) |  |  | $ | — |  |  | $ | (1,176) |
The following table presents the amortized cost of credit card loans based on performing status and gross charge-offs during the three months ended March 31, 2026. Nonperforming loans consisted of nonaccrual loans and loans past due 90 days or more and still accruing.
|  | Term Loans by Origination Year |  | Revolving Loans |  | Revolving Converted to Term Loans |  | Total
($ in thousands) |  | Prior |  | 2022 |  | 2023 |  | 2024 |  | 2025 |  | 2026 |  |  |
March 31, 2026 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit cards |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 4,273 |  |  | $ | — |  |  | $ | 4,273 |
Nonperforming |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 63 |  |  | — |  |  | 63 |
Total |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 4,336 |  |  | $ | — |  |  | $ | 4,336 |
Gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (80) |  |  | $ | — |  |  | $ | (80) |
Total loans evaluated by performing status |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 4,336 |  |  | $ | — |  |  | $ | 4,336 |
Total gross charge-offs |  | $ | (577) |  |  | $ | (399) |  |  | $ | (149) |  |  | $ | (17) |  |  | $ | (15) |  |  | $ | — |  |  | $ | (99) |  |  | $ | — |  |  | $ | (1,256) |
Total recorded investment |  | $ | 1,958,739 |  |  | $ | 972,210 |  |  | $ | 517,049 |  |  | $ | 455,864 |  |  | $ | 617,211 |  |  | $ | 78,876 |  |  | $ | 245,526 |  |  | $ | 2,555 |  |  | $ | 4,848,030 |
The following table provides information on loan risk ratings as of December 31, 2025 and gross charge-offs during the year ended December 31, 2025.
|  | Term Loans by Origination Year |  | Revolving Loans |  | Revolving Converted to Term Loans |  | Total
($ in thousands) |  | Prior |  | 2021 |  | 2022 |  | 2023 |  | 2024 |  | 2025 |  |  |
December 31, 2025 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 939,986 |  |  | $ | 364,719 |  |  | $ | 556,924 |  |  | $ | 242,170 |  |  | $ | 139,929 |  |  | $ | 265,405 |  |  | $ | 14,703 |  |  | $ | 27,136 |  |  | $ | 2,550,972 |
Special mention |  | 15,105 |  |  | 2,884 |  |  | 34,014 |  |  | 344 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 52,347 |
Substandard |  | 20,056 |  |  | 16,806 |  |  | 2,840 |  |  | — |  |  | 283 |  |  | — |  |  | 692 |  |  | — |  |  | 40,677 |
Total |  | $ | 975,147 |  |  | $ | 384,409 |  |  | $ | 593,778 |  |  | $ | 242,514 |  |  | $ | 140,212 |  |  | $ | 265,405 |  |  | $ | 15,395 |  |  | $ | 27,136 |  |  | $ | 2,643,996 |
Gross charge-offs |  | $ | (109) |  |  | $ | (2,640) |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (2,749) |
Residential real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 317,764 |  |  | $ | 182,198 |  |  | $ | 275,869 |  |  | $ | 215,397 |  |  | $ | 147,517 |  |  | $ | 114,300 |  |  | $ | 131,075 |  |  | $ | 695 |  |  | $ | 1,384,815 |
Special mention |  | 3,719 |  |  | 14,777 |  |  | — |  |  | 504 |  |  | — |  |  | — |  |  | 65 |  |  | — |  |  | 19,065 |
Substandard |  | 6,990 |  |  | 2,012 |  |  | 267 |  |  | 330 |  |  | — |  |  | 112 |  |  | 1,373 |  |  | — |  |  | 11,084 |
Total |  | $ | 328,473 |  |  | $ | 198,987 |  |  | $ | 276,136 |  |  | $ | 216,231 |  |  | $ | 147,517 |  |  | $ | 114,412 |  |  | $ | 132,513 |  |  | $ | 695 |  |  | $ | 1,414,964 |
Gross charge-offs |  | $ | (5) |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (45) |  |  | $ | — |  |  | $ | (50) |
Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 27,094 |  |  | $ | 7,238 |  |  | $ | 7,047 |  |  | $ | 28,868 |  |  | $ | 108,885 |  |  | $ | 151,738 |  |  | $ | 13,070 |  |  | $ | 632 |  |  | $ | 344,572 |
Special mentions |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Substandard |  | 88 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 243 |  |  | — |  |  | — |  |  | 331 |
Total |  | $ | 27,182 |  |  | $ | 7,238 |  |  | $ | 7,047 |  |  | $ | 28,868 |  |  | $ | 108,885 |  |  | $ | 151,981 |  |  | $ | 13,070 |  |  | $ | 632 |  |  | $ | 344,903 |
Gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 23,379 |  |  | $ | 25,518 |  |  | $ | 19,739 |  |  | $ | 14,925 |  |  | $ | 29,307 |  |  | $ | 35,202 |  |  | $ | 70,493 |  |  | $ | 1,870 |  |  | $ | 220,433 |
Special mention |  | 104 |  |  | 27 |  |  | 107 |  |  | 105 |  |  | 76 |  |  | 54 |  |  | 845 |  |  | — |  |  | 1,318 |
Substandard |  | 424 |  |  | 1,055 |  |  | 758 |  |  | 527 |  |  | — |  |  | — |  |  | 1,318 |  |  | 173 |  |  | 4,255 |
Total |  | $ | 23,907 |  |  | $ | 26,600 |  |  | $ | 20,604 |  |  | $ | 15,557 |  |  | $ | 29,383 |  |  | $ | 35,256 |  |  | $ | 72,656 |  |  | $ | 2,043 |  |  | $ | 226,006 |
Gross charge-offs |  | $ | (71) |  |  | $ | — |  |  | $ | — |  |  | $ | (329) |  |  | $ | — |  |  | $ | — |  |  | $ | (381) |  |  | $ | (31) |  |  | $ | (812) |
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 7,954 |  |  | $ | 45,750 |  |  | $ | 88,990 |  |  | $ | 39,576 |  |  | $ | 31,597 |  |  | $ | 49,634 |  |  | $ | 769 |  |  | $ | — |  |  | $ | 264,270 |
Special mention |  | — |  |  | — |  |  | 671 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 671 |
Substandard |  | 1 |  |  | 29 |  |  | 396 |  |  | 445 |  |  | 41 |  |  | 59 |  |  | — |  |  | — |  |  | 971 |
Total |  | $ | 7,955 |  |  | $ | 45,779 |  |  | $ | 90,057 |  |  | $ | 40,021 |  |  | $ | 31,638 |  |  | $ | 49,693 |  |  | $ | 769 |  |  | $ | — |  |  | $ | 265,912 |
Gross charge-offs |  | $ | (451) |  |  | $ | (99) |  |  | $ | (1,595) |  |  | $ | (646) |  |  | $ | (324) |  |  | $ | — |  |  | $ | (18) |  |  | $ | — |  |  | $ | (3,133) |
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 1,316,177 |  |  | $ | 625,423 |  |  | $ | 948,569 |  |  | $ | 540,936 |  |  | $ | 457,235 |  |  | $ | 616,279 |  |  | $ | 230,110 |  |  | $ | 30,333 |  |  | $ | 4,765,062 |
Special mention |  | 18,928 |  |  | 17,688 |  |  | 34,792 |  |  | 953 |  |  | 76 |  |  | 54 |  |  | 910 |  |  | — |  |  | 73,401 |
Substandard |  | 27,559 |  |  | 19,902 |  |  | 4,261 |  |  | 1,302 |  |  | 324 |  |  | 414 |  |  | 3,383 |  |  | 173 |  |  | 57,318 |
Total loans by risk category |  | $ | 1,362,664 |  |  | $ | 663,013 |  |  | $ | 987,622 |  |  | $ | 543,191 |  |  | $ | 457,635 |  |  | $ | 616,747 |  |  | $ | 234,403 |  |  | $ | 30,506 |  |  | $ | 4,895,781 |
Total gross charge-offs |  | $ | (636) |  |  | $ | (2,739) |  |  | $ | (1,595) |  |  | $ | (975) |  |  | $ | (324) |  |  | $ | — |  |  | $ | (444) |  |  | $ | (31) |  |  | $ | (6,744) |
The following table presents the amortized cost of credit card loans based on performing status and gross charge-offs during the year ended December 31, 2025. Nonperforming loans consisted of nonaccrual loans and loans past due 90 days or more and still accruing.
|  | Term Loans by Origination Year |  | Revolving Loans |  | Revolving Converted to Term Loans |  | Total
($ in thousands) |  | Prior |  | 2021 |  | 2022 |  | 2023 |  | 2024 |  | 2025 |  |  |
December 31, 2025 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit cards |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 4,473 |  |  | $ | — |  |  | $ | 4,473 |
Nonperforming |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 48 |  |  | — |  |  | 48 |
Total |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 4,521 |  |  | $ | — |  |  | $ | 4,521 |
Gross charge-offs |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (535) |  |  | $ | — |  |  | $ | (535) |
Total loans evaluated by performing status |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 4,521 |  |  | $ | — |  |  | $ | 4,521 |
Total gross charge-offs |  | $ | (636) |  |  | $ | (2,739) |  |  | $ | (1,595) |  |  | $ | (975) |  |  | $ | (324) |  |  | $ | — |  |  | $ | (979) |  |  | $ | (31) |  |  | $ | (7,279) |
Total recorded investment |  | $ | 1,362,664 |  |  | $ | 663,013 |  |  | $ | 987,622 |  |  | $ | 543,191 |  |  | $ | 457,635 |  |  | $ | 616,747 |  |  | $ | 238,924 |  |  | $ | 30,506 |  |  | $ | 4,900,302 |
The following tables provide information on the aging of the Company’s loan portfolio as of March 31, 2026 and December 31, 2025.
($ in thousands) |  | 30‑59 Days Past Due |  | 60‑89 Days Past Due |  | 90 Days Past Due and Still Accruing |  | 30-89 Days Past Due and Not Accruing |  | 90 Days Past Due and Not Accruing |  | Total Past Due |  | Current Accrual Loans |  | Current Nonaccrual Loans |  | Total
March 31, 2026 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate |  | $ | 761 |  |  | $ | 881 |  |  | $ | — |  |  | $ | 1,183 |  |  | $ | 655 |  |  | $ | 3,480 |  |  | $ | 2,545,892 |  |  | $ | 50,443 |  |  | $ | 2,599,815 |
Residential real estate |  | 2,272 |  |  | 8 |  |  | — |  |  | 3,444 |  |  | 1,207 |  |  | 6,931 |  |  | 1,414,376 |  |  | 4,426 |  |  | 1,425,733 |
Construction |  | 42 |  |  | — |  |  | — |  |  | 35 |  |  | 126 |  |  | 203 |  |  | 342,632 |  |  | — |  |  | 342,835 |
Commercial |  | 45 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 45 |  |  | 217,946 |  |  | 2,842 |  |  | 220,833 |
Consumer |  | 239 |  |  | 136 |  |  | — |  |  | — |  |  | 75 |  |  | 450 |  |  | 253,569 |  |  | 459 |  |  | 254,478 |
Credit cards |  | 71 |  |  | 11 |  |  | — |  |  | 17 |  |  | 46 |  |  | 145 |  |  | 4,191 |  |  | — |  |  | 4,336 |
Total |  | $ | 3,430 |  |  | $ | 1,036 |  |  | $ | — |  |  | $ | 4,679 |  |  | $ | 2,109 |  |  | $ | 11,254 |  |  | $ | 4,778,606 |  |  | $ | 58,170 |  |  | $ | 4,848,030 |
Percent of total loans |  | 0.07 | % |  | 0.02 | % |  | 0.00 | % |  | 0.10 | % |  | 0.04 | % |  | 0.23 | % |  | 98.57 | % |  | 1.20 | % |  | 100.00 | %
($ in thousands) |  | 30‑59 days Past Due |  | 60‑89 Days Past Due |  | 90 Days Past Due and Still Accruing |  | 30-89 Days Past Due and Not Accruing |  | 90 Days Past Due and Not Accruing |  | Total Past Due |  | Current Accrual Loans |  | Current Nonaccrual Loans |  | Total
December 31, 2025 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate |  | $ | 1,684 |  |  | $ | — |  |  | $ | — |  |  | $ | 68 |  |  | $ | 2,741 |  |  | $ | 4,493 |  |  | $ | 2,616,679 |  |  | $ | 22,824 |  |  | $ | 2,643,996 |
Residential real estate |  | 1,663 |  |  | 397 |  |  | 71 |  |  | 1,225 |  |  | 2,583 |  |  | 5,939 |  |  | 1,402,695 |  |  | 6,330 |  |  | 1,414,964 |
Construction |  | — |  |  | 43 |  |  | 79 |  |  | — |  |  | 88 |  |  | 210 |  |  | 344,693 |  |  | — |  |  | 344,903 |
Commercial |  | — |  |  | 4 |  |  | — |  |  | 46 |  |  | 150 |  |  | 200 |  |  | 222,921 |  |  | 2,885 |  |  | 226,006 |
Consumer |  | 390 |  |  | 690 |  |  | — |  |  | 43 |  |  | 448 |  |  | 1,571 |  |  | 263,860 |  |  | 481 |  |  | 265,912 |
Credit cards |  | 14 |  |  | 19 |  |  | 105 |  |  | 32 |  |  | — |  |  | 170 |  |  | 4,335 |  |  | 16 |  |  | 4,521 |
Total |  | $ | 3,751 |  |  | $ | 1,153 |  |  | $ | 255 |  |  | $ | 1,414 |  |  | $ | 6,010 |  |  | $ | 12,583 |  |  | $ | 4,855,183 |  |  | $ | 32,536 |  |  | $ | 4,900,302 |
Percent of total loans |  | 0.08 | % |  | 0.02 | % |  | 0.01 | % |  | 0.03 | % |  | 0.12 | % |  | 0.26 | % |  | 99.08 | % |  | 0.66 | % |  | 100.00 | %
The following tables provide a summary of the activity in the ACL allocated by loan class for the three months ended March 31, 2026 and 2025. Allocation of a portion of the allowance to one loan class does not preclude its availability to absorb losses from other loan classes.
($ in thousands) |  | Beginning Balance |  | Charge-offs |  | Recoveries |  |  |  | Provisions |  | Ending Balance
Three Months Ended March 31, 2026 |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate |  | $ | 21,387 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 285 |  |  | $ | 21,672 |
Residential real estate |  | 22,510 |  |  | (142) |  |  | 23 |  |  |  |  | 602 |  |  | 22,993 |
Construction |  | 5,968 |  |  | — |  |  | — |  |  |  |  | (1,162) |  |  | 4,806 |
Commercial |  | 3,005 |  |  | (203) |  |  | 27 |  |  |  |  | 668 |  |  | 3,497 |
Consumer |  | 5,767 |  |  | (831) |  |  | 356 |  |  |  |  | 123 |  |  | 5,415 |
Credit cards |  | 199 |  |  | (80) |  |  | 3 |  |  |  |  | (24) |  |  | 98 |
Total |  | $ | 58,836 |  |  | $ | (1,256) |  |  | $ | 409 |  |  |  |  | $ | 492 |  |  | $ | 58,481 |
($ in thousands) |  | Beginning Balance |  | Charge-offs |  | Recoveries |  |  |  | Provisions |  | Ending Balance
Three Months Ended March 31, 2025 |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate |  | $ | 22,846 |  |  | $ | — |  |  | $ | 78 |  |  |  |  | $ | (936) |  |  | $ | 21,988 |
Residential real estate |  | 21,776 |  |  | — |  |  | 1 |  |  |  | 616 |  |  | 22,393 |
Construction |  | 2,854 |  |  | — |  |  | 1 |  |  |  | 987 |  |  | 3,842 |
Commercial |  | 3,138 |  |  | (2) |  |  | 6 |  |  |  | (287) |  |  | 2,855 |
Consumer |  | 6,889 |  |  | (482) |  |  | 86 |  |  |  | 81 |  |  | 6,574 |
Credit cards |  | 407 |  |  | (242) |  |  | — |  |  |  |  | 225 |  |  | 390 |
Total |  | $ | 57,910 |  |  | $ | (726) |  |  | $ | 172 |  |  |  |  | $ | 686 |  |  | $ | 58,042 |
The following tables present the amortized cost basis of collateral-dependent loans by loan portfolio segment as of March 31, 2026 and December 31, 2025.
|  | March 31, 2026
($ in thousands) |  | Real Estate Collateral |  | Other Collateral |  | Total
Commercial real estate |  | $ | 64,453 |  |  | $ | — |  |  | $ | 64,453 |
Residential real estate |  | 10,225 |  |  | — |  |  | 10,225 |
Construction |  | 404 |  |  | — |  |  | 404 |
Commercial(1) |  | — |  |  | 6,658 |  |  | 6,658 |
Consumer(2) |  | — |  |  | 533 |  |  | 533 |
Total |  | $ | 75,082 |  |  | $ | 7,191 |  |  | $ | 82,273 |
|  | December 31, 2025
($ in thousands) |  | Real Estate Collateral |  | Other Collateral |  | Total
Commercial real estate |  | $ | 40,676 |  |  | $ | — |  |  | $ | 40,676 |
Residential real estate |  | 11,084 |  |  | — |  |  | 11,084 |
Construction |  | 332 |  |  | — |  |  | 332 |
Commercial(1) |  | — |  |  | 4,164 |  |  | 4,164 |
Consumer(2) |  | — |  |  | 971 |  |  | 971 |
Total |  | $ | 52,092 |  |  | $ | 5,135 |  |  | $ | 57,227 |
____________________________________ (1)Commercial loans are primarily secured by underlying business assets of the borrower. (2)Consumer loans are primarily secured by automobiles and boats of the borrower. Loan Modifications to Borrowers Experiencing Financial Difficulty Loan modifications to borrowers experiencing financial difficulty may include interest rate reduction, principal or interest forgiveness, forbearance, term extensions and other combinations of actions intended to minimize economic loss and avoid foreclosure or repossession of collateral. During the three months ended March 31, 2026 and 2025, no loan modifications were made to borrowers experiencing financial difficulty. As of March 31, 2026, of the loans with borrowers experiencing financial difficulty that were modified during the preceding 12 months, $5.3 million and $164 thousand were classified as current accrual and current nonaccrual, respectively. As of December 31, 2025, of the loans with borrowers experiencing financial difficulty that were modified during the preceding 12 months, $5.3 million and $170 thousand were classified as current accrual and current nonaccrual, respectively. During the three months ended March 31, 2026 and 2025, there were no defaults on loan modifications made to borrowers experiencing financial difficulty in the preceding 12 months. Foreclosure Proceedings The Company had $124 thousand and $124 thousand of consumer mortgage loans collateralized by residential real estate property that were in the process of foreclosure as of March 31, 2026 and December 31, 2025, respectively. The Company had $151 thousand and $95 thousand of commercial real estate loans collateralized by commercial real estate that were in the process of foreclosure as of March 31, 2026 and December 31, 2025, respectively. Other Real Estate Owned (“OREO”) and Repossessed Assets OREO and repossessed assets are adjusted for fair value upon transfer from loans to foreclosed assets, establishing a new cost basis. Subsequently, foreclosed assets are carried at the lower of carrying value or fair value. The Company had OREO and repossessed asset balances of $69 thousand and $3.3 million as of March 31, 2026 and $113 thousand and $2.9 million as of December 31, 2025, respectively. Mortgage Servicing Rights (“MSRs”) Mortgage loans are sold with servicing retained and the MSRs are initially recorded at fair value with the income statement effect recorded in mortgage banking revenue in the consolidated statements of income. Subsequently, the MSRs are amortized to the income statement in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Servicing rights are evaluated for impairment based upon fair value of the rights as compared to carrying amount. No impairments of MSRs were recognized for the three months ended March 31, 2026 or 2025. The Company recognized net servicing income of $139 thousand and a net servicing loss of $65 thousand for the three months ended March 31, 2026 and 2025, respectively. At March 31, 2026, the Company was servicing $334.0 million in loans for the Federal National Mortgage Association and $101.8 million in loans for Federal Home Loan Mortgage Corporation. The following table presents activity in MSRs for the three months ended March 31, 2026 and 2025.
|  | Three Months Ended March 31, |  |
($ in thousands) |  | 2026 |  | 2025 |  |  |  |
Beginning balance |  | $ | 5,142 |  |  | $ | 5,874 |  |  |  |  |
Net additions |  | — |  |  | 43 |  |  |  |  |
Amortization expense |  | (159) |  |  | (52) |  |  |  |  |
Other |  | — |  |  | (330) |  |  |  |  |
Ending balance |  | $ | 4,983 |  |  | $ | 5,535 |  |  |  |  |
The fair value of MSRs were determined using discount rates ranging from 9.0% to 9.0% at March 31, 2026 and 9.0% to 10.0% at December 31, 2025. The valuation on MSRs was not material at March 31, 2026 and December 31, 2025. Depending on the stratification of the specific mortgage servicing right, prepayment speeds ranged from 5.88% to 8.60% for the three months ended March 31, 2026. The associated weighted-average default rate was 0.20% for the three months ended March 31, 2026.

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