Financial Instruments with Off-Balance Sheet Risk

12 Months Ended

Dec. 31, 2025

Financial Instruments With Off-balance Sheet Risk

Financial Instruments with Off-Balance Sheet Risk

Note 18 – Financial Instruments with Off-Balance Sheet Risk

Various commitments to extend credit are made in the normal course of banking business. Letters of credit are also issued for the benefit of customers. These commitments are subject to loan underwriting standards and geographic boundaries consistent with the Company’s loans outstanding.

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since some of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.

The table below presents the loan commitments outstanding and lines and letters of credit.

	As of December 31,
(dollars in thousands)	2025		2024
Unfunded loan commitments	$	1,482,325	$	1,318,133
Unfunded lines of credit	79,232		88,305
Letters of credit	61,319		69,051
Total	$	1,622,876	$	1,475,489

As of December 31, 2025, the total reserve for unfunded commitments was $5.1 million as compared to $3.5 million as of December 31, 2024 and is accounted for as a liability on the Consolidated Balance Sheets. See "Note 1 – Summary of Significant Accounting Policies" to the Consolidated Financial Statements for more information on the accounting policy for the allowance for unfunded commitments.