
	Three Months Ended September 30, 2026
(In thousands)	Beginning Balance		Allowance on PCD Loans Acquired		Provision for Credit Losses		Charge- Offs		Recoveries		Ending Balance
Construction and land development	$	8,641	$	—	$	388	$	—	$	15	$	9,044
CRE - owner occupied	23,033		—		907		(23)		1		23,918
CRE - non-owner occupied	55,775		8,399		1,678		—		37		65,889
Residential real estate	50,120		—		437		—		22		50,579
Commercial and financial	37,379		—		2,768		(5,789)		636		34,994
Consumer	7,102		—		119		(480)		190		6,931
Totals	$	182,050	$	8,399	$	6,297	$	(6,292)	$	901	$	191,355


	Three Months Ended September 30, 2025
(In thousands)	Beginning Balance		Allowance on PCD Loans Acquired		Provision for Credit Losses		Charge- Offs		Recoveries		Ending Balance
Construction and land development	$	6,556	$	—	$	945	$	(139)	$	4	$	7,366
CRE - owner occupied	12,942		22		1,388		(197)		5		14,160
CRE - non-owner occupied	46,627		1		2,828		—		348		49,804
Residential real estate	41,687		60		686		(174)		59		42,318
Commercial and financial	27,109		18		2,411		(4,431)		1,454		26,561
Consumer	7,263		5		113		(371)		234		7,244
Totals	$	142,184	$	106	$	8,371	$	(5,312)	$	2,104	$	147,453


	Nine Months Ended September 30, 2026
(In thousands)	Beginning Balance		Allowance on PCD Loans Acquired		Provision for Credit Losses		Charge- Offs		Recoveries		Ending Balance
Construction and land development	$	9,740	$	—	$	(782)	$	(34)	$	120	$	9,044
CRE - owner occupied	16,528		—		7,206		(45)		229		23,918
CRE - non-owner occupied	56,143		8,399		2,254		(1,068)		161		65,889
Residential real estate	51,297		—		(419)		(355)		56		50,579
Commercial and financial	37,943		—		7,105		(11,628)		1,574		34,994
Consumer	7,152		—		691		(1,693)		781		6,931
Totals	$	178,803	$	8,399	$	16,055	$	(14,823)	$	2,921	$	191,355


	Nine Months Ended September 30, 2025
(In thousands)	Beginning Balance		Allowance on PCD Loans Acquired		Provision for Credit Losses		Charge- Offs		Recoveries		Ending Balance
Construction and land development	$	7,252	$	—	$	241	$	(139)	$	12	$	7,366
CRE - owner occupied	11,825		22		2,503		(197)		7		14,160
CRE - non-owner occupied	43,866		1		4,761		(320)		1,496		49,804
Residential real estate	39,168		60		3,390		(400)		100		42,318
Commercial and financial	27,533		18		10,748		(14,163)		2,425		26,561
Consumer	8,411		5		357		(2,296)		767		7,244
Totals	$	138,055	$	106	$	22,000	$	(17,515)	$	4,807	$	147,453

Management establishes the allowance using relevant available information from both internal and external sources, relating to past events, current economic conditions, and reasonable and supportable forecasts. Forecast data is sourced from Moody’s, a firm widely recognized for its research, analysis, and economic forecasts. The forecasts of future economic conditions are over the expected remaining life of the loan using economic forecasts that revert to long-term historical averages over time.

As of September 30, 2026 and December 31, 2025, the Company utilized a multiple scenario model comprised of a blend of Moody’s economic scenarios and considered the uncertainty associated with the assumptions in the scenarios, including continued actions taken by the Federal Reserve regarding monetary policy and changes in interest rates and the potential impact of those actions. Outcomes could differ from the scenarios utilized, and the Company incorporated qualitative considerations reflecting the risk of uncertain economic conditions, and for additional dimensions of risk that may not be captured in the quantitative model.

The allowance increased $9.3 million, or 5.1%, during the third quarter of 2026 to $191.4 million, representing 1.41% of loans held for investment as of September 30, 2026.

During the third quarter of 2026, the Company recorded an $8.4 million measurement period adjustment related to an acquired loan that was determined to meet the definition of PCD as of the acquisition date. The measurement period adjustment increased the ACL on acquired PCD loans by $8.4 million based on facts and circumstances that existed at the acquisition date.

In the Construction and land development segment, the increase in allowance is driven by the increase in loan balances. In this segment, the primary source of repayment is typically from proceeds of the sale or permanent financing of the underlying property; therefore, industry and collateral type and estimated collateral values are among the relevant factors in assessing expected losses.

In the CRE - owner-occupied segment, the allowance increased due to the increase in loan balances. Risk characteristics include, but are not limited to, collateral type, note structure and loan seasoning.

In the CRE - non-owner-occupied segment, the allowance increased due to the $8.4 million measurement period adjustment on an acquired loan, and due to the increase in loan balances in this segment. Repayment is often dependent upon rental income from the successful operation of the underlying property or from the sale of the property. Loan performance may be adversely affected by general economic conditions or conditions specific to the real estate market, including property types. Collateral type, note structure, and loan seasoning are among the risk characteristics analyzed for this segment.

The Residential real estate segment includes residential mortgage, home equity loans, and HELOCs. The increase in the allowance is due to the increase in loan balances. Risk characteristics considered for this segment include, but are not limited to, borrower FICO score, lien position, LTV ratios, and loan seasoning.

In the Commercial and financial segment, borrowers are primarily small to medium sized professional firms and other businesses, and loans are generally supported by projected cash flows of the business, collateralized by business assets, and/or guaranteed by the business owners. The allowance decreased in the third quarter due to a decrease in modeled expected losses and due to charge-offs. Industry, collateral type, estimated collateral values, and loan seasoning are among the relevant factors in assessing expected losses.