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Loans And Allowance For Credit Losses
 3 Months Ended
Mar. 31, 2025
Receivables [Abstract]  
Financing Receivables Loans and Allowance for Credit Losses
Major classifications within the Company’s held for investment loan portfolio at March 31, 2025 and December 31, 2024 are as follows:

(In thousands)
March 31, 2025December 31, 2024
Commercial:
Business$6,239,276 $6,053,820 
Real estate – construction and land1,419,572 1,409,901 
Real estate – business3,628,635 3,661,218 
Personal Banking:
Real estate – personal3,047,809 3,058,195 
Consumer2,116,160 2,073,123 
Revolving home equity356,675 356,650 
Consumer credit card568,163 595,930 
Overdrafts3,131 11,266 
Total loans$17,379,421 $17,220,103 

Accrued interest receivable totaled $66.2 million and $70.6 million at March 31, 2025 and December 31, 2024, respectively, and was included within other assets on the consolidated balance sheets. For the three months ended March 31, 2025, the Company wrote-off accrued interest by reversing interest income of $112 thousand and $1.7 million in the Commercial and Personal Banking portfolios, respectively. Similarly, for the three months ended March 31, 2024, the Company reversed $94 thousand and $1.6 million in the Commercial and Personal Banking portfolios, respectively.

At March 31, 2025, loans of $3.3 billion were pledged at the Federal Home Loan Bank as collateral for borrowings and letters of credit obtained to secure public deposits. Additional loans of $2.6 billion were pledged at the Federal Reserve Bank as collateral for discount window borrowings.
Allowance for credit losses
The allowance for credit losses is measured using an average historical loss model which incorporates relevant information about past events (including historical credit loss experience on loans with similar risk characteristics), current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual term of the loans. The allowance for credit losses is measured on a collective (pool) basis. Loans are aggregated into pools based on similar risk characteristics including borrower type, collateral type and expected credit loss patterns. Loans that do not share similar risk characteristics, primarily large loans on non-accrual status, are evaluated on an individual basis.

For loans evaluated for credit losses on a collective basis, average historical loss rates are calculated for each pool using the Company’s historical net charge-offs (combined charge-offs and recoveries by observable historical reporting period) and outstanding loan balances during a lookback period. Lookback periods can be different based on the individual pool and represent management’s credit expectations for the pool of loans over the remaining contractual life. In certain loan pools, if the Company’s own historical loss rate is not reflective of the loss expectations, the historical loss rate is augmented by industry and peer data. The calculated average net charge-off rate is then adjusted for current conditions and reasonable and supportable forecasts. These adjustments increase or decrease the average historical loss rate to reflect expectations of future losses given a single path economic forecast of key macroeconomic variables including GDP, disposable income, various interest rates, unemployment rate, consumer price index (CPI) inflation rate, housing price index (HPI), commercial real estate price index (CREPI) and market volatility. The adjustments are based on results from various regression models projecting the impact of the macroeconomic variables to loss rates. The forecast is used for a reasonable and supportable period before reverting back to historical averages using a straight-line method. The forecast-adjusted loss rate is applied to the amortized cost of loans over the remaining contractual lives, adjusted for expected prepayments. The contractual term excludes expected extensions (except for contractual extensions at the option of the customer), renewals and modifications. Credit cards and certain similar consumer lines of credit do not have stated maturities and therefore, for these loan classes, remaining contractual lives are determined by estimating future cash flows expected to be received from customers until payments have been fully allocated to outstanding balances. Additionally, the allowance for credit losses considers other qualitative factors not included in historical loss rates or macroeconomic forecast such as changes in portfolio composition, underwriting practices, or significant unique events or conditions.
Key assumptions in the Company’s allowance for credit loss model include the economic forecast, the reasonable and supportable period, forecasted macro-economic variables, prepayment assumptions and qualitative factors applied for portfolio composition changes, underwriting practices, or significant unique events or conditions. The assumptions utilized in estimating the Company’s allowance for credit losses at March 31, 2025 and December 31, 2024 are discussed below.

Key AssumptionMarch 31, 2025December 31, 2024
Overall economic forecast
•Economic uncertainty surged in first quarter of 2025 and will weigh on the economy
•The overall US effective tariff rate is expected to more than triple from March 31, 2025
•Federal worker layoffs cause slight increase in unemployment
•The US economy will continue to grow
•Expansionary fiscal policy and less immigration cause the labor market to tighten, pushing the unemployment rate lower

Reasonable and supportable period and related reversion period
•Reasonable and supportable period of one year
•Reversion to historical average loss rates within two quarters using a straight-line method
•Reasonable and supportable period of one year
•Reversion to historical average loss rates within two quarters using a straight-line method
Forecasted macro-economic variables
•Unemployment rate ranges from 4.2% to 4.4% during the supportable forecast period
•Real GDP growth ranges from 1.7% to 2.1%
•BBB corporate yield from 5.4% to 5.5%
•Housing Price Index from 331.1 to 338.4
•Unemployment rate ranges from 4.2% to 4.3% during the reasonable and supportable forecast period
•Real GDP growth ranges from 2.5% to 2.7%
•BBB corporate yield from 5.2% to 5.3%
•Housing Price Index from 324.8 to 335.4
Prepayment assumptions
Commercial loans
•5% for most loan pools
Personal banking loans
•Ranging from 7.0% to 23.5% for most loan pools
•Consumer credit cards 66.5%
Commercial loans
•5% for most loan pools
Personal banking loans
•Ranging from 8.9% to 23.1% for most loan pools
•Consumer credit cards 66.5%
Qualitative factors
Added qualitative factors related to:
•Changes in the composition of the loan portfolios
•Certain industries experiencing stress or emerging concerns within the portfolio
•Loans downgraded to special mention, substandard, or non-accrual status
•Consumer auto portfolio loss expectation adjustment
•Other consumer portfolio loss expectation adjustment
•Certain portfolios where the model assumptions do not capture all identified loss risk
Added qualitative factors related to:
•Changes in the composition of the loan portfolios
•Certain industries experiencing stress or emerging concerns within the portfolio
•Loans downgraded to special mention, substandard, or non-accrual status
•Consumer auto portfolio
•Certain portfolios where the model assumptions do not capture all identified loss risk

The liability for unfunded lending commitments utilizes the same model as the allowance for credit losses on loans, however, the liability for unfunded lending commitments incorporates an assumption for the portion of unfunded commitments that are expected to be funded.

Sensitivity in the Allowance for Credit Loss model
The allowance for credit losses is an estimate that requires significant judgment including projections of the macro-economic environment. The forecasted macro-economic environment continuously changes which can cause fluctuations in the estimate of expected credit losses.

The current forecast includes projections on the impact of the tariffs the United States ("U.S.") administration announced and reduction in U.S. federal workers due to announced layoffs, while noting significant policy uncertainty.

Both trade policy uncertainty and fiscal policy uncertainty are not likely to resolve in the short term. Policy changes and the market's response to the changes could impact inflation, labor market trends, Federal Reserve monetary policy, business growth and consumer spending. Economic, political, and social developments regionally, nationally, and even globally could significantly modify economic projections used in the estimation of the allowance for credit losses.
Potential changes in any one economic variable may or may not affect the overall allowance because a variety of economic variables and inputs are considered in estimating the allowance, and changes in those variables and inputs may not occur at the same rate, may not be consistent across product types, and may have offsetting impacts to other changing variables and inputs.

A summary of the activity in the allowance for credit losses on loans and the liability for unfunded lending commitments for the three months ended March 31, 2025 and 2024, respectively, follows:

For the Three Months Ended March 31, 2025
(In thousands)CommercialPersonal Banking

Total
ALLOWANCE FOR CREDIT LOSSES ON LOANS
Balance at beginning of period$106,769 $55,973 $162,742 
Provision for credit losses on loans354 14,741 15,095 
Deductions:
   Loans charged off726 12,567 13,293 
   Less recoveries on loans303 2,184 2,487 
Net loan charge-offs (recoveries)423 10,383 10,806 
Balance March 31, 2025$106,700 $60,331 $167,031 
LIABILITY FOR UNFUNDED LENDING COMMITMENTS
Balance at beginning of period$17,887 $1,048 $18,935 
Provision for credit losses on unfunded lending commitments(840)232 (608)
Balance March 31, 2025$17,047 $1,280 $18,327 
ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LIABILITY FOR UNFUNDED LENDING COMMITMENTS$123,747 $61,611 $185,358 

For the Three Months Ended March 31, 2024
(In thousands)CommercialPersonal Banking

Total
ALLOWANCE FOR CREDIT LOSSES ON LOANS
Balance at beginning of period$108,201 $54,194 $162,395 
Provision for credit losses on loans(2,855)9,802 6,947 
Deductions:
   Loans charged off316 10,849 11,165 
   Less recoveries on loans434 1,854 2,288 
Net loan charge-offs (recoveries)(118)8,995 8,877 
Balance March 31, 2024$105,464 $55,001 $160,465 
LIABILITY FOR UNFUNDED LENDING COMMITMENTS
Balance at beginning of period$23,909 $1,337 $25,246 
Provision for credit losses on unfunded lending commitments(2,273)113 (2,160)
Balance March 31, 2024$21,636 $1,450 $23,086 
ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LIABILITY FOR UNFUNDED LENDING COMMITMENTS$127,100 $56,451 $183,551 
Delinquent and non-accrual loans
The Company considers loans past due on the day following the contractual repayment date, if the contractual repayment was not received by the Company as of the end of the business day. The following table provides aging information on the Company’s past due and accruing loans, in addition to the balances of loans on non-accrual status, at March 31, 2025 and December 31, 2024.




(In thousands)
Current or Less Than 30 Days Past Due

30 – 89
Days Past Due
90 Days Past Due and Still AccruingNon-accrual



Total
March 31, 2025
Commercial:
Business$6,235,165 $2,386 $613 $1,112 $6,239,276 
Real estate – construction and land1,419,343 9 — 220 1,419,572 
Real estate – business3,610,277 10 43 18,305 3,628,635 
Personal Banking:
Real estate – personal 3,017,240 22,556 7,024 989 3,047,809 
Consumer2,089,260 24,157 2,743 — 2,116,160 
Revolving home equity353,166 990 542 1,977 356,675 
Consumer credit card552,121 7,590 8,452 — 568,163 
Overdrafts2,874 257 — — 3,131 
Total $17,279,446 $57,955 $19,417 $22,603 $17,379,421 
December 31, 2024
Commercial:
Business$6,051,654 $1,501 $564 $101 $6,053,820 
Real estate – construction and land1,409,681 — — 220 1,409,901 
Real estate – business3,640,643 5,621 — 14,954 3,661,218 
Personal Banking:
Real estate – personal 3,021,017 25,267 10,885 1,026 3,058,195 
Consumer2,029,115 40,398 3,610 — 2,073,123 
Revolving home equity351,056 2,798 819 1,977 356,650 
Consumer credit card579,670 7,622 8,638 — 595,930 
Overdrafts10,953 313 — — 11,266 
Total $17,093,789 $83,520 $24,516 $18,278 $17,220,103 

At March 31, 2025, the Company had $5.9 million in non-accrual loans that had no allowance for credit loss, compared to $2.0 million in non-accrual loans that had no allowance for credit loss at December 31, 2024. The Company did not record any interest income on non-accrual loans during the three months ended March 31, 2025 and 2024, respectively.

Credit quality indicators
The following table provides information about the credit quality of the Commercial loan portfolio. The Company utilizes an internal risk rating system comprised of a series of grades to categorize loans according to perceived risk associated with the expectation of debt repayment based on borrower specific information including, but not limited to, current financial information, historical payment experience, industry information, collateral levels and collateral types. The “pass” category consists of a range of loan grades that reflect increasing, though still acceptable, risk. A loan is assigned the risk rating at origination and then monitored throughout the contractual term for possible risk rating changes. Movement of risk through the various grade levels in the “pass” category is monitored for early identification of credit deterioration. The “special mention” rating is applied to loans where the borrower exhibits negative financial trends due to borrower specific or systemic conditions that, if left uncorrected, threaten its capacity to meet its debt obligations. The borrower is believed to have sufficient financial flexibility to react to and resolve its negative financial situation. It is a transitional grade that is closely monitored for improvement or deterioration. The “substandard” rating is applied to loans where the borrower exhibits well-defined weaknesses that jeopardize its continued performance and are of a severity that the distinct possibility of default exists. Loans are placed on “non-accrual” when management does not expect to collect payments consistent with acceptable and agreed upon terms of repayment.

All loans are analyzed for risk rating updates annually. For larger loans, rating assessments may be more frequent if relevant information is obtained earlier through debt covenant monitoring or overall relationship management. Smaller loans
are monitored as identified by the loan officer based on the risk profile of the individual borrower or if the loan becomes past due related to credit issues. Loans rated Special Mention, Substandard or Non-accrual are subject to quarterly review and monitoring processes. In addition to the regular monitoring performed by the lending personnel and credit committees, loans are subject to review by a credit review department which verifies the appropriateness of the risk ratings for the loans chosen as part of its risk-based review plan.

The risk category of loans in the Commercial portfolio as of March 31, 2025 and December 31, 2024 are as follows:

Term Loans Amortized Cost Basis by Origination Year
(In thousands)20252024202320222021PriorRevolving Loans Amortized Cost BasisTotal
March 31, 2025
Business
    Risk Rating:
       Pass$419,931 $1,273,288 $838,520 $565,125 $372,791 $457,180 $2,087,293 $6,014,128 
       Special mention652 6,120 8,566 11,061 3,927 4,088 61,804 96,218 
       Substandard— 2,064 6,349 18,432 11,245 9,148 80,580 127,818 
       Non-accrual— 1 77 126 897 11 — 1,112 
   Total Business:$420,583 $1,281,473 $853,512 $594,744 $388,860 $470,427 $2,229,677 $6,239,276 
Gross write-offs for the three months ended March 31, 2025
$— $— $— $— $— $— $326 $326 
Real estate-construction
    Risk Rating:
       Pass$99,421 $358,930 $487,381 $402,951 $22,518 $3,742 $28,632 $1,403,575 
       Special mention— — — 12,953 — — — 12,953 
       Substandard— 236 2,588 — — — — 2,824 
       Non-accrual— 220 — — — — — 220 
    Total Real estate-construction:$99,421 $359,386 $489,969 $415,904 $22,518 $3,742 $28,632 $1,419,572 
Gross write-offs for the three months ended March 31, 2025
$— $— $— $— $— $— $— $— 
Real estate-business
    Risk Rating:
       Pass$152,673 $714,302 $537,158 $739,443 $443,965 $669,762 $154,304 $3,411,607 
       Special mention489 15,125 9,404 14,060 934 2,701 — 42,713 
       Substandard— 1,267 37,134 28,600 15,380 66,650 6,979 156,010 
       Non-accrual— — 2,917 292 429 14,667 — 18,305 
   Total Real estate-business:$153,162 $730,694 $586,613 $782,395 $460,708 $753,780 $161,283 $3,628,635 
Gross write-offs for the three months ended March 31, 2025
$— $— $400 $— $— $— $— $400 
Commercial loans
    Risk Rating:
       Pass$672,025 $2,346,520 $1,863,059 $1,707,519 $839,274 $1,130,684 $2,270,229 $10,829,310 
       Special mention1,141 21,245 17,970 38,074 4,861 6,789 61,804 151,884 
       Substandard— 3,567 46,071 47,032 26,625 75,798 87,559 286,652 
       Non-accrual— 221 2,994 418 1,326 14,678 — 19,637 
   Total Commercial loans:$673,166 $2,371,553 $1,930,094 $1,793,043 $872,086 $1,227,949 $2,419,592 $11,287,483 
Gross write-offs for the three months ended March 31, 2025
$— $— $400 $— $— $— $326 $726 
Term Loans Amortized Cost Basis by Origination Year
(In thousands)20242023202220212020PriorRevolving Loans Amortized Cost BasisTotal
December 31, 2024
Business
    Risk Rating:
       Pass$1,505,299 $956,449 $596,681 $405,669 $148,483 $350,106 $1,887,596 $5,850,283 
       Special mention13,576 7,978 8,941 4,155 263 2,065 34,997 71,975 
       Substandard2,218 5,596 19,145 5,069 928 10,086 88,419 131,461 
       Non-accrual1 47 1 — — 52 — 101 
   Total Business:$1,521,094 $970,070 $624,768 $414,893 $149,674 $362,309 $2,011,012 $6,053,820 
Gross write-offs for the year ended December 31, 2024$200 $275 $40 $53 $— $18 $1,387 $1,973 
Real estate-construction
    Risk Rating:
       Pass$419,562 $442,720 $451,606 $53,462 $3,143 $2,450 $34,075 $1,407,018 
       Special mention— — — — — — — — 
       Substandard— 2,663 — — — — — 2,663 
       Non-accrual220 — — — — — — 220 
    Total Real estate-construction:$419,782 $445,383 $451,606 $53,462 $3,143 $2,450 $34,075 $1,409,901 
Gross write-offs for the year ended December 31, 2024$— $— $— $— $— $— $— $— 
Real estate- business
    Risk Rating:
       Pass$755,498 $604,936 $753,023 $448,041 $363,717 $368,350 $129,868 $3,423,433 
       Special mention324 — 12,383 12,524 1,643 298 — 27,172 
       Substandard1,280 23,420 36,657 18,429 4,416 104,382 7,075 195,659 
       Non-accrual— — 170 — 14,668 116 — 14,954 
   Total Real-estate business:$757,102 $628,356 $802,233 $478,994 $384,444 $473,146 $136,943 $3,661,218 
Gross write-offs for the year ended December 31, 2024$— $— $— $— $— $62 $— $62 
Commercial loans
    Risk Rating:
       Pass$2,680,359 $2,004,105 $1,801,310 $907,172 $515,343 $720,906 $2,051,539 $10,680,734 
       Special mention13,900 7,978 21,324 16,679 1,906 2,363 34,997 99,147 
       Substandard3,498 31,679 55,802 23,498 5,344 114,468 95,494 329,783 
       Non-accrual221 47 171 — 14,668 168 — 15,275 
   Total Commercial loans:$2,697,978 $2,043,809 $1,878,607 $947,349 $537,261 $837,905 $2,182,030 $11,124,939 
Gross write-offs for the year ended December 31, 2024$200 $275 $40 $53 $— $80 $1,387 $2,035 
The credit quality of Personal Banking loans is monitored primarily on the basis of aging/delinquency, and this information is provided as of March 31, 2025 and December 31, 2024 below.

Term Loans Amortized Cost Basis by Origination Year
(In thousands)20252024202320222021PriorRevolving Loans Amortized Cost BasisTotal
March 31, 2025
Real estate-personal
       Current to 90 days past due$75,510 $370,737 $377,835 $397,730 $474,009 $1,335,077 $8,898 $3,039,796 
       Over 90 days past due— 195 643 682 1,383 4,121 — 7,024 
       Non-accrual— — 7 — 107 875 — 989 
   Total Real estate-personal:$75,510 $370,932 $378,485 $398,412 $475,499 $1,340,073 $8,898 $3,047,809 
Gross write-offs for the three months ended March 31, 2025
$— $— $45 $35 $— $— $— $80 
Consumer
       Current to 90 days past due$139,297 $362,193 $339,427 $202,952 $137,489 $104,513 $827,546 $2,113,417 
       Over 90 days past due— 263 303 285 107 293 1,492 2,743 
    Total Consumer:$139,297 $362,456 $339,730 $203,237 $137,596 $104,806 $829,038 $2,116,160 
Gross write-offs for the three months ended March 31, 2025
$— $1,139 $912 $663 $265 $140 $511 $3,630 
Revolving home equity
       Current to 90 days past due$— $— $— $— $— $— $354,156 $354,156 
       Over 90 days past due— — — — — — 542 542 
       Non-accrual— — — — — — 1,977 $1,977 
   Total Revolving home equity:$— $— $— $— $— $— $356,675 $356,675 
Gross write-offs for the three months ended March 31, 2025
$— $— $— $— $— $— $— $— 
Consumer credit card
       Current to 90 days past due$— $— $— $— $— $— $559,711 $559,711 
       Over 90 days past due— — — — — — 8,452 8,452 
   Total Consumer credit card:$— $— $— $— $— $— $568,163 $568,163 
Gross write-offs for the three months ended March 31, 2025
$— $— $— $— $— $— $8,171 $8,171 
Overdrafts
       Current to 90 days past due$3,131 $— $— $— $— $— $— $3,131 
    Total Overdrafts:$3,131 $— $— $— $— $— $— $3,131 
Gross write-offs for the three months ended March 31, 2025
$686 $— $— $— $— $— $— $686 
Personal banking loans
       Current to 90 days past due$217,938 $732,930 $717,262 $600,682 $611,498 $1,439,590 $1,750,311 $6,070,211 
       Over 90 days past due— 458 946 967 1,490 4,414 10,486 18,761 
       Non-accrual— — 7 — 107 875 1,977 2,966 
   Total Personal banking loans:$217,938 $733,388 $718,215 $601,649 $613,095 $1,444,879 $1,762,774 $6,091,938 
Gross write-offs for the three months ended March 31, 2025
$686 $1,139 $957 $698 $265 $140 $8,682 $12,567 
Term Loans Amortized Cost Basis by Origination Year
(In thousands)20242023202220212020PriorRevolving Loans Amortized Cost BasisTotal
December 31, 2024
Real estate-personal
       Current to 90 days past due$387,119 $387,486 $404,680 $482,733 $637,115 $736,217 $10,934 $3,046,284 
       Over 90 days past due665 892 1,431 1,890 3,180 2,827 — 10,885 
       Non-accrual— 8 — 108 — 910 — 1,026 
   Total Real estate-personal:$387,784 $388,386 $406,111 $484,731 $640,295 $739,954 $10,934 $3,058,195 
Gross write-offs for the year ended December 31, 2024$— $82 $115 $83 $— $22 $— $302 
Consumer
       Current to 90 days past due$418,902 $369,855 $228,189 $165,030 $72,314 $49,890 $765,333 $2,069,513 
       Over 90 days past due465 584 406 213 47 367 1,528 3,610 
    Total Consumer:$419,367 $370,439 $228,595 $165,243 $72,361 $50,257 $766,861 $2,073,123 
Gross write-offs for the year ended December 31, 2024$1,438 $3,109 $2,859 $1,308 $540 $255 $2,309 $11,818 
Revolving home equity
       Current to 90 days past due$— $— $— $— $— $— $353,854 $353,854 
       Over 90 days past due— — — — — — 819 819 
       Non-accrual— — — — — — 1,977 $1,977 
   Total Revolving home equity:$— $— $— $— $— $— $356,650 $356,650 
Gross write-offs for the year ended December 31, 2024$— $— $— $— $— $— $— $— 
Consumer credit card
       Current to 90 days past due$— $— $— $— $— $— $587,292 $587,292 
       Over 90 days past due— — — — — — 8,638 8,638 
   Total Consumer credit card:$— $— $— $— $— $— $595,930 $595,930 
Gross write-offs for the year ended December 31, 2024$— $— $— $— $— $— $30,427 $30,427 
Overdrafts
       Current to 90 days past due$11,266 $— $— $— $— $— $— $11,266 
    Total Overdrafts:$11,266 $— $— $— $— $— $— $11,266 
Gross write-offs for the year ended December 31, 2024$2,689 $— $— $— $— $— $— $2,689 
Personal banking loans
       Current to 90 days past due$817,287 $757,341 $632,869 $647,763 $709,429 $786,107 $1,717,413 $6,068,209 
       Over 90 days past due1,130 1,476 1,837 2,103 3,227 3,194 10,985 23,952 
       Non-accrual— 8 — 108 — 910 1,977 3,003 
   Total Personal banking loans:$818,417 $758,825 $634,706 $649,974 $712,656 $790,211 $1,730,375 $6,095,164 
Gross write-offs for the year ended December 31, 2024$4,127 $3,191 $2,974 $1,391 $540 $277 $32,736 $45,236 
Collateral-dependent loans
The Company's collateral-dependent loans are comprised of large loans on non-accrual status. The Company requires that collateral-dependent loans are either over-collateralized or carry collateral equal to the amortized cost of the loan. The following table presents the amortized cost basis of collateral-dependent loans as of March 31, 2025 and December 31, 2024.

(In thousands)Business AssetsReal EstateTotal
March 31, 2025
Commercial:
  Business$1,023 $— $1,023 
  Real estate - business— 17,585 17,585 
Personal Banking:
  Revolving home equity— 1,977 1,977 
Total$1,023 $19,562 $20,585 
December 31, 2024
Commercial:
Real estate - business$— $14,667 $14,667 
Personal Banking:
Revolving home equity— 1,977 1,977 
Total$— $16,644 $16,644 

Modifications for borrowers experiencing financial difficulty
When borrowers are experiencing financial difficulty, the Company may agree to modify the contractual terms of a loan to a borrower in order to assist the borrower in repaying principal and interest owed to the Company.

The Company's modifications of loans to borrowers experiencing financial difficulty are generally in the form of term extensions, repayment plans, payment deferrals, forbearance agreements, interest rate reductions, forgiveness of interest and/or fees, or any combination thereof. Commercial loans modified to borrowers experiencing financial difficulty are primarily loans that are substandard or non-accrual, where the maturity date was extended. Modifications on personal real estate loans are primarily those placed on forbearance plans, repayment plans, or deferral plans where monthly payments are suspended for a period of time or past due amounts are paid off over a certain period of time in the future or set up as a balloon payment at maturity. Modifications to certain credit card and other small consumer loans are often modified under debt counseling programs that can reduce the contractual rate or, in certain instances, forgive certain fees and interest charges. Other consumer loans modified to borrowers experiencing financial difficulty consist of various other workout arrangements with consumer customers.

The following tables present the amortized cost at March 31, 2025 of loans that were modified during the three months ended March 31, 2025 and the amortized cost of at March 31, 2024 of loans that were modified during the three months ended March 31, 2024.

For the Three Months Ended March 31, 2025



(Dollars in thousands)
Term ExtensionPayment DelayInterest Rate ReductionTotal% of Total Loan Category
March 31, 2025
Commercial:
Business$54,539 $— $— $54,539 0.9 %
Real estate – business76,958 — — 76,958 2.1 
Personal Banking:
Real estate – personal — 3,884 — 3,884 0.1 
Consumer— — 67 67 — 
Consumer credit card— — 880 880 0.2 
Total $131,497 $3,884 $947 $136,328 0.8 %
For the Three Months Ended March 31, 2024



(Dollars in thousands)
Term ExtensionPayment DelayInterest Rate ReductionTotal% of Total Loan Category
March 31, 2024
Commercial:
Business$11,648 $— $— $11,648 0.2 %
Real estate – business17,004 — — 17,004 0.5 
Personal Banking:
Real estate – personal 526 2,706 — 3,232 0.1 
Consumer— — 31 31 — 
Consumer credit card— — 945 945 0.2 
Total $29,178 $2,706 $976 $32,860 0.2 %

The estimate of lifetime expected losses utilized in the allowance for credit losses model is developed using average historical experience on loans with similar risk characteristics, which includes losses from modifications of loans to borrowers experiencing financial difficulty. As a result, a change to the allowance for credit losses is generally not recorded upon modification. For modifications to loans made to borrowers experiencing financial difficulty that are placed on non-accrual status, the Company determines the allowance for credit losses on an individual evaluation, using the same process that it utilizes for other loans on non-accrual status. Modifications made to commercial loans which are not on non-accrual status for borrowers experiencing financial difficulty are collectively evaluated based on internal risk rating, loan type, delinquency, historical experience, and current economic factors. Modifications made to borrowers experiencing financial difficulty for personal banking loans which are not on non-accrual status are collectively evaluated based on loan type, delinquency, historical experience, and current economic factors.

If a loan to a borrower experiencing financial difficulty is modified and subsequently deemed uncollectible, the allowance for credit losses continues to be based on individual evaluation, if that loan is already on non-accrual status. For those loans, the allowance for credit losses is estimated using discounted expected cash flows or the fair value of collateral. If an accruing loan made to a borrower experiencing financial difficulty is modified and subsequently deemed uncollectible, the loan's risk rating is downgraded to non-accrual status and the loan's related allowance for credit losses is determined based on individual evaluation, or if necessary, the loan is charged off and collection efforts begin.

The following tables summarize the financial impact of loan modifications and payment deferrals during the three months ended March 31, 2025 and March 31, 2024.

Term Extension
Three Months Ended March 31, 2025Three Months Ended March 31, 2024
Commercial:
Business
Extended maturity by a weighted average of 7 months.
Extended maturity by a weighted average of 6 months.
Real estate – business
Extended maturity by a weighted average of 18 months.
Extended maturity by a weighted average of 8 months.
Personal Banking:
Real estate – personal -
Extended maturity by a weighted average of 6 months.


Payment Delay
Three Months Ended March 31, 2025Three Months Ended March 31, 2024
Personal Banking:
Real estate – personal
Deferred certain payments by a weighted average of 16 years.
Deferred certain payments by a weighted average of 8 years.
Interest Rate Reduction
Three Months Ended March 31, 2025Three Months Ended March 31, 2024
Personal Banking:
ConsumerReduced contractual interest rate from average 21% to 6%.Reduced contractual interest rate from average 23% to 6%.
Consumer credit cardReduced contractual interest rate from average 21% to 6%.Reduced contractual interest rate from average 23% to 6%.


The Company had commitments of $11.8 million and $14.9 million at March 31, 2025 and December 31, 2024, respectively, to lend additional funds to borrowers experiencing financial difficulty and for whom the Company has modified the terms of loans in the form of an interest rate reduction; an other-than-insignificant payment delay; forgiveness of principal, interest, or fees; or a term extension during the current reporting period.

The following tables provide the amortized cost basis at March 31, 2025 of loans to borrowers experiencing financial difficulty that had a payment default during the three months ended March 31, 2025 and were modified within the 12 months preceding the payment default, as well as the amortized cost basis at March 31, 2024 of loans to borrowers experiencing financial difficulty that had a payment default during the three months ended March 31, 2024 and had been modified within the 12 months preceding the payment default. For purposes of this disclosure, the Company considers "default" to mean 90 days or more past due as to interest or principal.

For the Three Months Ended March 31, 2025


(Dollars in thousands)		Term ExtensionPayment DelayInterest Rate ReductionInterest/Fees ForgivenTotal
March 31, 2025
Commercial:
Real estate – business$14,667 $— $— $— $14,667 
Personal Banking:
Real estate – personal — 1,762 — — 1,762 
Consumer— — 33 — 33 
Consumer credit card— — 218 — 218 
Total $14,667 $1,762 $251 $— $16,680 
For the Three Months Ended March 31, 2024


(Dollars in thousands)
Term ExtensionPayment DelayInterest Rate ReductionInterest/Fees ForgivenTotal
March 31, 2024
Personal Banking:
Real estate – personal $— $1,138 $— $— $1,138 
Consumer— — 14 — 14 
Consumer credit card— — 260 61 321 
Total $— $1,138 $274 $61 $1,473 


The following tables present the amortized cost basis at March 31, 2025 of loans to borrowers experiencing financial difficulty that had been modified within the previous 12 months as well as the amortized cost basis at March 31, 2024 of loans to borrowers experiencing financial difficulty that had been modified within the 12 months preceding March 31, 2024.


(In thousands)
Current
30-89 Days Past Due
90 Days Past DueTotal
March 31, 2025
Commercial:
Business$89,831 $44 $— $89,875 
Real estate – business124,311 124 14,667 139,102 
Personal Banking:
Real estate – personal 7,008 2,762 1,763 11,533 
Consumer852 17 33 902 
Consumer credit card2,418 445 218 3,081 
Total $224,420 $3,392 $16,681 $244,493 



(In thousands)
Current
30-89 Days Past Due
90 Days Past DueTotal
March 31, 2024
Commercial:
Business$25,544 $— $— $25,544 
Real estate – business93,924 — — 93,924 
Personal Banking:
Real estate – personal 3,556 1,136 1,761 6,453 
Consumer150 17 14 181 
Consumer credit card2,107 513 296 2,916 
Total $125,281 $1,666 $2,071 $129,018 


Loans held for sale
The Company designates certain long-term fixed rate personal real estate loans as held for sale, and the Company has elected the fair value option for these loans. The election of the fair value option aligns the accounting for these loans with the related economic hedges discussed in Note 11. The loans are primarily sold to Federal Home Loan Mortgage Corporation (FHLMC) and Federal National Mortgage Association (FNMA). At March 31, 2025, the fair value of these loans was $2.7 million, and the unpaid principal balance was $2.7 million.

At March 31, 2025, none of the loans held for sale were on non-accrual status or 90 days past due and still accruing interest.
Foreclosed real estate/repossessed assets
The Company’s holdings of foreclosed real estate totaled $642 thousand and $343 thousand at March 31, 2025 and December 31, 2024, respectively, and included in those amounts were $642 thousand and $343 thousand at March 31, 2025 and December 31, 2024, respectively, of foreclosed residential real estate properties held as a result of obtaining physical possession. Personal property acquired in repossession, generally autos, totaled $2.3 million and $2.2 million at March 31, 2025 and December 31, 2024. Upon acquisition, these assets are recorded at fair value less estimated selling costs at the date of foreclosure, establishing a new cost basis. They are subsequently carried at the lower of this cost basis or fair value less estimated selling costs.