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LOANS AND CREDIT QUALITY
 3 Months Ended
Mar. 31, 2025
Receivables [Abstract]  
LOANS AND CREDIT QUALITY
3. LOANS AND CREDIT QUALITY

The following table presents loans by class, excluding loans held for sale, net of deferred fees and costs as of the dates presented:

(dollars in thousands)March 31, 2026December 31, 2025
Commercial and industrial$590,810 $594,592 
Construction204,368 213,191 
Residential mortgage1,806,965 1,839,191 
Home equity582,380 600,082 
Commercial mortgage1,703,760 1,594,433 
Consumer432,066 447,607 
Loans, net of deferred fees and costs$5,320,349 $5,289,096 

Interest income on loans is accrued at the contractual rate of interest based on the unpaid principal balance. The Company has elected to not measure an estimate of credit losses on accrued interest receivable, as any uncollectible accrued interest receivable are written off in a timely manner. Accrued interest receivable on loans is reported together with accrued interest receivable on investment securities and other assets in the consolidated balance sheets. As of March 31, 2026 and December 31, 2025, accrued interest receivable on loans totaled $17.7 million and $18.3 million, respectively.

The Company did not transfer any loans to the held for sale category during the three months ended March 31, 2026 and 2025 and did not sell any loans originally held for investment during the three months ended March 31, 2026 and 2025.
Purchased Loans

The following table presents loan purchase activity by class at the time of purchase for the periods presented. None of the purchased loans were classified as purchased credit deteriorated ("PCD"), and there were no loans categorized as PCD during the periods presented.

(dollars in thousands)Three Months Ended March 31,
Purchases of U.S. Mainland Consumer - Dealer:20262025
Outstanding balance$15,472 $31,440 
Premium323 236 
Purchase price$15,795 $31,676 
Collateral-Dependent Loans

A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. These loans are individually evaluated to determine expected credit losses. The following tables present the amortized cost basis of collateral-dependent loans by class and the related ACL allocated to these loans as of the dates presented:

(dollars in thousands)Secured by
1-4 Family
Residential
Properties		Allocated
ACL
March 31, 2026
Residential mortgage$10,518 $— 
Home equity2,986 — 
Total$13,504 $— 
(dollars in thousands)Secured by
1-4 Family
Residential
Properties		Allocated
ACL
December 31, 2025
Residential mortgage$10,572 $— 
Home equity2,608 — 
Total$13,180 $— 

Foreclosure Proceedings

As of March 31, 2026 and December 31, 2025, the Company did not own any foreclosed properties. The Company did not sell any foreclosed properties during the three months ended March 31, 2026 and 2025.

The Company had $10.6 million and $10.3 million of residential mortgage and home equity loans collateralized by residential real estate properties that were in the process of foreclosure as of March 31, 2026 and December 31, 2025, respectively.

The Company did not have any commercial real estate loans in the process of foreclosure as of March 31, 2026 and December 31, 2025.
Nonaccrual and Past Due Loans

For all loan types, the delinquency status is determined based on the number of days full payments required by the contractual terms of the loan are past due. The following tables present by class, the aging of the recorded investment in past due loans as of the dates presented. The following tables also present the amortized cost of loans on nonaccrual status for which there was no related ACL as of the dates presented:

(dollars in thousands)Accruing
Loans
30 - 59 Days
Past Due		Accruing
Loans
60 - 89 Days
Past Due		Accruing
Loans
90+ Days
Past Due		Nonaccrual
Loans		Total
Past Due
and
Nonaccrual		Loans Not
Past Due		Total LoansNonaccrual
Loans
With
No ACL
March 31, 2026
Commercial and industrial$3,749 $234 $— $490 $4,473 $586,337 $590,810 $— 
Construction— — — — — 204,368 204,368 — 
Residential mortgage7,659 661 — 10,518 18,838 1,788,127 1,806,965 10,518 
Home equity1,359 267 — 2,986 4,612 577,768 582,380 2,986 
Commercial mortgage160 640 — — 800 1,702,960 1,703,760 — 
Consumer3,340 1,055 290 530 5,215 426,851 432,066 — 
Total$16,267 $2,857 $290 $14,524 $33,938 $5,286,411 $5,320,349 $13,504 

(dollars in thousands)Accruing
Loans
30 - 59 Days
Past Due		Accruing
Loans
60 - 89 Days
Past Due		Accruing
Loans
90+ Days
Past Due		Nonaccrual
Loans		Total
Past Due
and
Nonaccrual		Loans Not
Past Due		Total LoansNonaccrual
Loans
With
No ACL
December 31, 2025
Commercial and industrial$461 $218 $— $591 $1,270 $593,322 $594,592 $— 
Construction— — — — — 213,191 213,191 — 
Residential mortgage6,399 2,030 664 10,572 19,665 1,819,526 1,839,191 10,572 
Home equity1,029 809 485 2,608 4,931 595,151 600,082 2,608 
Commercial mortgage— — — — — 1,594,433 1,594,433 — 
Consumer3,357 1,312 403 615 5,687 441,920 447,607 — 
Total$11,246 $4,369 $1,552 $14,386 $31,553 $5,257,543 $5,289,096 $13,180 
Loan Modifications for Borrowers Experiencing Financial Difficulty

The Company executed one loan modification that consisted of a term extension for a commercial and industrial loan for the quarter ending March 31, 2026. The loan had an amortized cost basis of $1.0 million and represents 0.17% of the commercial and industrial balance as of March 31, 2026. The financial effect of the modification for the term extension was not material. The Company did not execute any concessions for principal forgiveness or rate reduction for the quarter ending March 31,
2026. The Company did not execute any material loan modifications, either individually or in the aggregate, for borrowers experiencing financial difficulty during the three months ended March 31, 2025.

When the Company determines that a modified loan, or a portion thereof, is uncollectible, the loan is written off. The amortized cost basis of the loan is reduced by the amount written off, with a corresponding reduction to the allowance for credit losses.
Credit Quality Indicators

The Company categorizes loans into risk ratings based on the evaluation of the borrower's ability to meet debt obligations such as: current financial information, historical payment experience, credit documentation, publicly available information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans by credit risk. This analysis includes non-homogeneous loans, such as commercial and commercial real estate loans. This analysis is performed regularly on an ongoing basis. For more information about the Company's credit quality indicators, refer to Note 3 - Loans and Credit Quality included in the Company's Annual Report on Form 10-K for the year ended December 31, 2025.

The following tables present the amortized cost basis, net of deferred fees and costs, of the Company's loans by class, credit quality indicator and origination year as of the dates presented. Revolving loans converted to term as of and during the periods presented were not material to total loans. In addition, the following tables present gross charge-offs of loans by origination year during the periods presented.
(dollars in thousands)Amortized Cost of Term Loans by Year of OriginationAmortized Cost of Revolving Loans
March 31, 202620262025202420232022PriorTotal
Commercial and industrial:
Risk Rating
Pass$24,644 $47,704 $164,147 $29,578 $54,007 $160,788 $96,951 $577,819 
Special Mention1,866 — 782 — — — — 2,648 
Substandard368 1,542 1,752 3,686 1,083 1,166 746 10,343 
Subtotal26,878 49,246 166,681 33,264 55,090 161,954 97,697 590,810 
Construction:
Risk Rating
Pass119 72,405 34,156 11,234 30,823 44,150 — 192,887 
Substandard— — — — — 11,481 — 11,481 
Subtotal119 72,405 34,156 11,234 30,823 55,631 — 204,368 
Residential mortgage:
Risk Rating
Pass22,945 93,715 56,663 77,728 233,893 1,311,503 — 1,796,447 
Substandard— — — 242 1,599 8,677 — 10,518 
Subtotal22,945 93,715 56,663 77,970 235,492 1,320,180 — 1,806,965 
Home equity:
Risk Rating
Pass411 467 963 10,609 24,579 160,261 382,104 579,394 
Substandard— — — 1,189 — 1,311 486 2,986 
Subtotal411 467 963 11,798 24,579 161,572 382,590 582,380 
Commercial mortgage:
Risk Rating
Pass141,440 198,962 142,220 91,972 203,057 866,181 — 1,643,832 
Special Mention— — 2,037 — — 469 — 2,506 
Substandard— — 35,571 2,186 5,883 13,782 — 57,422 
Subtotal141,440 198,962 179,828 94,158 208,940 880,432 — 1,703,760 
Consumer:
Risk Rating
Pass12,770 121,355 54,131 73,636 51,994 85,412 31,948 431,246 
Substandard— 70 119 66 129 436 — 820 
Subtotal12,770 121,425 54,250 73,702 52,123 85,848 31,948 432,066 
Total$204,563 $536,220 $492,541 $302,126 $607,047 $2,665,617 $512,235 $5,320,349