Allowance for Credit Losses

12 Months Ended

Dec. 31, 2024

(In Thousands)

Allowance for Credit Losses on Loans

The following table provides a roll-forward of the allowance for credit losses by loan category and a breakdown of the ending balance of the allowance based on the Company’s credit loss methodology for the periods presented:


	Commercial		Real Estate - Construction		Real Estate - 1-4 Family Mortgage		Real Estate - Commercial Mortgage		Lease Financing		Installment Loans to Individuals		Total
Year Ended December 31, 2024
Allowance for credit losses on loans:
Beginning balance	$	43,980	$	18,612	$	47,283	$	77,020	$	2,515	$	9,168	$	198,578
Impact of PCD loans acquired during the period	—		—		—		—		—		—		—
Charge-offs	(4,463)		(145)		(966)		(5,737)		(642)		(1,856)		(13,809)
Recoveries	1,710		—		166		2,278		34		1,551		5,739
Net charge-offs	(2,753)		(145)		(800)		(3,459)		(608)		(305)		(8,070)
(Recoveries of) provision for credit losses on loans	(2,700)		(3,341)		1,278		16,643		1,461		(2,093)		11,248
Ending balance	$	38,527	$	15,126	$	47,761	$	90,204	$	3,368	$	6,770	$	201,756
Period-End Amount Allocated to:
Individually evaluated	$	3,823	$	—	$	—	$	9,622	$	1,337	$	270	$	15,052
Collectively evaluated	34,704		15,126		47,761		80,582		2,031		6,500		186,704
Ending balance	$	38,527	$	15,126	$	47,761	$	90,204	$	3,368	$	6,770	$	201,756
Loans:
Individually evaluated	$	9,712	$	241	$	6,576	$	45,182	$	4,082	$	270	$	66,063
Collectively evaluated	1,876,105		1,093,412		3,482,301		6,190,886		86,509		89,744		12,818,957
Ending balance	$	1,885,817	$	1,093,653	$	3,488,877	$	6,236,068	$	90,591	$	90,014	$	12,885,020

Nonaccruing loans with no allowance for credit losses	$	122	$	241	$	6,298	$	14,764	$	614	$	—	$	22,039


	Commercial		Real Estate - Construction		Real Estate - 1-4 Family Mortgage		Real Estate - Commercial Mortgage		Lease Financing		Installment Loans to Individuals		Total
Year Ended December 31, 2023
Allowance for credit losses on loans:
Beginning balance	$	44,255	$	19,114	$	44,727	$	71,798	$	2,463	$	9,733	$	192,090
Impact of PCD loans acquired during the period	25		—		—		—		—		—		25
Charge-offs	(8,838)		(57)		(417)		(5,568)		(1,524)		(2,636)		(19,040)
Recoveries	3,090		48		389		712		18		2,453		6,710
Net charge-offs	(5,748)		(9)		(28)		(4,856)		(1,506)		(183)		(12,330)
Provision for (recoveries of) credit losses on loans	5,448		(493)		2,584		10,078		1,558		(382)		18,793
Ending balance	$	43,980	$	18,612	$	47,283	$	77,020	$	2,515	$	9,168	$	198,578
Period-End Amount Allocated to:
Individually evaluated	$	9,093	$	—	$	83	$	1,132	$	—	$	270	$	10,578
Collectively evaluated	34,887		18,612		47,200		75,888		2,515		8,898		188,000
Ending balance	$	43,980	$	18,612	$	47,283	$	77,020	$	2,515	$	9,168	$	198,578
Loans:
Individually evaluated	$	18,026	$	—	$	11,600	$	15,705	$	—	$	270	$	45,601
Collectively evaluated	1,853,795		1,333,397		3,428,319		5,470,845		116,020		103,253		12,305,629
Ending balance	$	1,871,821	$	1,333,397	$	3,439,919	$	5,486,550	$	116,020	$	103,523	$	12,351,230

Nonaccruing loans with no allowance for credit losses	$	1,689	$	—	$	10,876	$	11,027	$	—	$	—	$	23,592

The Company’s allowance for credit loss model considers economic projections, primarily the national unemployment rate and GDP, over a reasonable and supportable period of two years. While credit metrics remained relatively stable, loan growth caused the Company’s allowance model to indicate that the size of the allowance for credit losses was appropriate during 2024.

Allowance for Credit Losses on Unfunded Loan Commitments

The following table provides a roll-forward of the allowance for credit losses on unfunded loan commitments included in “Other liabilities” in the Consolidated Balance Sheets for the periods presented.


	Year Ended
	2024		2023
Allowance for credit losses on unfunded loan commitments:
Beginning balance	$	16,918	$	20,118
Recovery of credit losses on unfunded loan commitments	(1,975)		(3,200)
Ending balance	$	14,943	$	16,918