Loans and Allowance for Credit Losses

6 Months Ended

Jun. 30, 2026

Receivables [Abstract]

LOANS AND ALLOWANCE FOR CREDIT LOSSES

LOANS AND ALLOWANCE FOR CREDIT LOSSES

Loans and Loans Held for Sale

Loans are presented net of unearned income. Unearned income consisted of net deferred loan fees and costs of $3.6 million at June 30, 2026 and $4.8 million at December 31, 2025 and a discount related to purchase accounting fair value adjustments of $1.7 million at June 30, 2026 and $2.0 million at December 31, 2025.

The following table summarizes the composition of our loan portfolio at the dates presented:

(dollars in thousands)	June 30, 2026		December 31, 2025
Commercial real estate	$	2,784,318	$	2,921,761
Commercial and industrial	1,408,034		1,330,605
Commercial construction	466,210		365,377
Business banking	1,289,133		1,315,863
Consumer real estate	2,030,605		2,047,071
Other consumer	80,086		91,280
Total Portfolio Loans	$	8,058,386	$	8,071,957
Loans held for sale	4,695		1,010
Total Loans(1)	$	8,063,081	$	8,072,967

(1)Excludes interest receivable of $32.4 million at June 30, 2026 and $33.4 million at December 31, 2025. Interest receivable is included in other assets in the Consolidated Balance Sheets.

Modifications to Borrowers Experiencing Financial Difficulty

The following tables present the amortized cost of loans to borrowers experiencing financial difficulty by portfolio segment and type of modification during the periods presented:

	Six Months Ended June 30, 2026
(dollars in thousands)	Term Extension		Term Extension and Payment Delays		Total		% of Portfolio Segment
Commercial real estate	$	—	$	3,520	$	3,520	0.13	%
Commercial and industrial	4,038		14,032		18,070		1.28	%
Business banking	18		—		18		—	%
Consumer real estate	369		—		369		0.02	%
Total	$	4,425	$	17,552	$	21,977	0.27	%
	Six Months Ended June 30, 2025
(dollars in thousands)	Term Extension		Term Extension and Payment Delays		Total		% of Portfolio Segment
Commercial and industrial	$	9,549	$	2,042	$	11,591	0.88	%
Consumer real estate	276		630		906		0.05	%
Total	$	9,825	$	2,672	$	12,497	0.16	%

The following tables describe the effect of loan modifications made to borrowers experiencing financial difficulty during the periods presented:

	Three Months Ended June 30, 2026		Six Months Ended June 30, 2026
	Weighted-Average Term Extension (in months)	Weighted-Average Term Extension and Payment Delays (in months)	Weighted-Average Term Extension (in months)	Weighted-Average Term Extension and Payment Delays (in months)
Commercial real estate	—	14	—	14
Commercial and industrial	—	6	12	4
Business banking	—	—	12	—
Consumer real estate	276	—	303	—

	Three Months Ended June 30, 2025		Six Months Ended June 30, 2025
	Weighted-Average Term Extension (in months)	Weighted-Average Term Extension and Payment Delays (in months)	Weighted-Average Term Extension (in months)	Weighted-Average Term Extension and Payment Delays (in months)
Commercial and industrial	7	—	7	13
Consumer real estate	96	13	121	13

We closely monitor the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of the modification efforts. The following tables present an aging analysis since the date of modification for loans to borrowers experiencing financial difficulty that were modified in the last 12 months as of the dates presented:

	June 30, 2026
(dollars in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Total
Commercial real estate	$	3,538	$	—	$	—	$	—	$	3,538
Commercial and industrial	22,372		—		—		10,189		32,561
Consumer real estate	537		—		—		135		672
Total	$	26,447	$	—	$	—	$	10,324	$	36,771

	June 30, 2025
(dollars in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Total
Commercial real estate	$	541	$	—	$	—	$	—	$	541
Commercial and industrial	11,591		—		—		—		11,591
Consumer real estate	995		117		98		75		1,285
Total	$	13,127	$	117	$	98	$	75	$	13,417

A payment default is defined as a loan having a payment past due 90 days or more. There were two payment defaults on previously modified loans to borrowers experiencing financial difficulty in the amount of $10.3 million during the three months ended June 30, 2026 and three payment defaults in the amount of $13.7 million during the six months ended June 30, 2026 compared to one payment default in the amount of $0.1 million during the three months ended June 30, 2025 and two payment defaults in the amount of $3.9 million during the six months ended June 30, 2025. Additionally, we had twelve commitments to lend an additional $1.7 million to borrowers experiencing financial difficulty that had a modification during the twelve months ended June 30, 2026 and eleven commitments to lend an additional $0.1 million to borrowers experiencing financial difficulty that had a modification during the same period in 2025.

The effect of modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses, or ACL, because of the measurement methodologies used to estimate the ACL, therefore, a change to the ACL is generally not recorded upon modification. If principal forgiveness is provided, that portion of the loan will be charged-off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the ACL. An assessment of whether the borrower is experiencing financial difficulty is made on the date of a modification.

Allowance for Credit Losses

We maintain an ACL, at a level determined to be adequate to absorb estimated expected credit losses within the loan portfolio over the contractual life of an instrument that considers our historical loss experience, current conditions and forecasts of future economic conditions as of the balance sheet date. We develop and document a systematic ACL methodology based on the following portfolio segments: 1) CRE, 2) C&I, 3) Commercial Construction, 4) Business Banking, 5) Consumer Real Estate and 6) Other Consumer.

The following are key risks within each portfolio segment:

CRE—Loans secured by commercial purpose real estate, including both owner-occupied properties and investment properties for various purposes such as hotels, retail, multifamily and health care. Operations of the individual projects and global cash flows of the debtors are the primary sources of repayment for these loans. The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the collateral type and the business prospects of the lessee, if the project is not owner-occupied.

C&I—Loans made to operating companies or manufacturers for the purpose of production, operating capacity, accounts receivable, inventory or equipment financing. Cash flow from the operations of the company is the primary source of repayment for these loans. The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the industry of the company. Collateral for these types of loans often does not have sufficient value in a distressed or liquidation scenario to satisfy the outstanding debt.

Commercial Construction—Loans made to finance construction of buildings or other structures, as well as to finance the acquisition and development of raw land for various purposes. While these loans are generally confined to the construction period, if there are problems, the project may not be completed, and as such, may not provide sufficient cash flow on its own to service the debt or have sufficient value in a liquidation to cover the outstanding principal. The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the type of project and the experience and resources of the developer.

Business Banking—Commercial purpose loans made to small businesses that are standard, non-complex products evaluated through a streamlined credit approval process that has been designed to maximize efficiency while maintaining high credit quality standards that meet small business market customers’ needs. The business banking portfolio is monitored by utilizing a standard and closely managed process focusing on behavioral and performance criteria. The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the collateral type and business.

Consumer Real Estate—Loans secured by first and second liens such as 1-4 family residential mortgages, home equity loans and home equity lines of credit. The primary source of repayment for these loans is the income and assets of the borrower. The condition of the local economy, in particular the unemployment rate, is an important indicator of risk for this segment. The state of the local housing market can also have a significant impact on this segment because low demand and/or declining home values can limit the ability of borrowers to sell a property and satisfy the debt.

Other Consumer—Loans made to individuals that may be secured by assets other than 1-4 family residences, as well as unsecured loans. This segment includes auto loans, unsecured loans and lines of credit. The primary source of repayment for these loans is the income and assets of the borrower. The condition of the local economy, in particular the unemployment rate, is an important indicator of risk for this segment. The value of the collateral, if there is any, is less likely to be a source of repayment due to less certain collateral values.

Management monitors various credit quality indicators for the commercial, business banking and consumer loan portfolios, including changes in risk ratings, nonperforming status and delinquency on a monthly basis.

We monitor the commercial and business banking loan portfolio through an internal risk rating system. Loan risk ratings are assigned based upon the creditworthiness of the borrower and are reviewed on an ongoing basis according to our internal policies. Loans within the pass rating generally have a lower risk of loss than loans risk rated as special mention or substandard.

Our risk ratings are consistent with regulatory guidance and are as follows:

Pass—The loan is currently performing and is of high quality.

Special Mention—A special mention loan has potential weaknesses that warrant management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects or in the strength of our credit position at some future date.

Substandard—A substandard loan is not adequately protected by the net worth and/or paying capacity of the borrower or by the collateral pledged, if any. Substandard loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. These loans are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected.

Doubtful—Loans classified doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable and improbable.The following tables present loan balances by year of origination and internally

assigned risk rating for our portfolio segments at the dates presented:

	June 30, 2026
	Risk Rating by Year of Origination
(dollars in thousands)	2026		2025		2024		2023		2022		2021 and Prior		Revolving		Revolving-Term		Total
Commercial Real Estate
Pass	$	136,999	$	474,872	$	333,754	$	288,371	$	267,047	$	1,160,002	$	36,559	$	—	$	2,697,604
Special mention	—		4,275		2,569		4,539		8,262		43,159		1,330		—		64,134
Substandard	—		—		—		—		730		21,850		—		—		22,580
Doubtful	—		—		—		—		—		—		—		—		—
Total Commercial Real Estate	136,999		479,147		336,323		292,910		276,039		1,225,011		37,889		—		2,784,318
Year-to-date Gross Charge-offs	—		—		—		—		—		—		—		—		—
Commercial and Industrial
Pass	142,993		152,649		87,518		100,038		113,176		218,578		477,506		—		1,292,458
Special mention	—		1,275		784		4,733		6,109		14,207		43,502		—		70,610
Substandard	—		—		—		1,814		—		21,227		19,504		—		42,545
Doubtful	—		—		—		—		—		—		2,421		—		2,421
Total Commercial and Industrial	142,993		153,924		88,302		106,585		119,285		254,012		542,933				1,408,034
Year-to-date Gross Charge-offs	—		—		—		198		—		—		555		—		753
Commercial Construction
Pass	61,703		257,445		91,356		35,260		9,314		2,795		8,337		—		466,210
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—		—
Total Commercial Construction	61,703		257,445		91,356		35,260		9,314		2,795		8,337		—		466,210
Year-to-date Gross Charge-offs	—		—		69		—		—		—		—		—		69
Business Banking
Pass	56,851		173,803		121,302		182,080		187,915		448,349		92,927		333		1,263,560
Special mention	—		—		794		1,768		1,733		3,481		242		112		8,130
Substandard	—		—		434		4,315		2,387		9,737		67		503		17,443
Doubtful	—		—		—		—		—		—		—		—		—
Total Business Banking	56,851		173,803		122,530		188,163		192,035		461,567		93,236		948		1,289,133
Year-to-date Gross Charge-offs	—		296		—		414		21		76		10		—		817
Consumer Real Estate
Pass	39,081		160,032		208,214		278,803		293,321		362,658		639,579		34,599		2,016,287
Special mention	—		—		—		—		—		76		—		—		76
Substandard	—		287		832		3,051		716		4,333		1,730		3,293		14,242
Doubtful	—		—		—		—		—		—		—		—		—
Total Consumer Real Estate	39,081		160,319		209,046		281,854		294,037		367,067		641,309		37,892		2,030,605
Year-to-date Gross Charge-offs			—		28		281		—		51		45		97		502
Other Consumer
Pass	3,458		5,315		4,070		2,771		2,619		1,182		45,309		15,182		79,906
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		20		—		145		—		15		180
Doubtful	—		—		—		—		—		—		—		—		—
Total Other Consumer	3,458		5,315		4,070		2,791		2,619		1,327		45,309		15,197		80,086
Year-to-date Gross Charge-offs	377		—		29		12		32		19		—		561		1,030
Pass	441,085		1,224,116		846,214		887,323		873,392		2,193,564		1,300,217		50,114		7,816,025
Special mention	—		5,550		4,147		11,040		16,104		60,923		45,074		112		142,950
Substandard	—		287		1,266		9,200		3,833		57,292		21,301		3,811		96,990
Doubtful	—		—		—		—		—		—		2,421		—		2,421
Total Loan Balance	$	441,085	$	1,229,953	$	851,627	$	907,563	$	893,329	$	2,311,779	$	1,369,013	$	54,037	$	8,058,386
Year-to-date Gross Charge-offs	$	377	$	296	$	126	$	905	$	53	$	146	$	610	$	658	$	3,171

	December 31, 2025
	Risk Rating by Year of Origination
(dollars in thousands)	2025		2024		2023		2022		2021		2020 and Prior		Revolving		Revolving-Term		Total
Commercial Real Estate
Pass	$	480,967	$	312,777	$	322,165	$	311,087	$	328,936	$	1,047,543	$	42,300	$	—	$	2,845,775
Special mention	—		2,907		—		6,865		3,148		25,805		254		—		38,979
Substandard	—		—		3,883		1,700		11,642		19,782		—		—		37,007
Doubtful	—		—		—		—		—		—		—		—		—
Total Commercial Real Estate	480,967		315,684		326,048		319,652		343,726		1,093,130		42,554		—		2,921,761
Year-to-date Gross Charge-offs	—		—		—		4,907		—		2,432		—		—		7,339
Commercial and Industrial
Pass	161,634		95,715		111,222		138,390		75,406		165,633		501,472		—		1,249,472
Special mention	—		350		2,423		1,394		3		13,611		8,179		—		25,960
Substandard	—		—		1,914		—		18,152		5,644		27,853		—		53,563
Doubtful	—		—		—		—		—		—		1,610		—		1,610
Total Commercial and Industrial	161,634		96,065		115,559		139,784		93,561		184,888		539,114		—		1,330,605
Year-to-date Gross Charge-offs	256		—		4,014		172		—		2,089		192		—		6,723
Commercial Construction
Pass	172,822		118,952		43,093		18,762		2,520		1,260		7,099		—		364,508
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		869		—		—		—		—		—		—		869
Doubtful	—		—		—		—		—		—		—		—		—
Total Commercial Construction	172,822		119,821		43,093		18,762		2,520		1,260		7,099		—		365,377
Year-to-date Gross Charge-offs	—		—		—		118		—		—		—		—		118
Business Banking
Pass	182,401		132,196		201,106		197,145		157,792		328,135		93,701		453		1,292,929
Special mention	—		394		—		427		137		2,871		4		161		3,994
Substandard	—		—		5,175		2,208		3,364		7,574		151		468		18,940
Doubtful	—		—		—		—		—		—		—		—		—
Total Business Banking	182,401		132,590		206,281		199,780		161,293		338,580		93,856		1,082		1,315,863
Year-to-date Gross Charge-offs	—		19		132		39		225		699		—		—		1,114
Consumer Real Estate
Pass	161,896		220,705		297,533		306,440		119,775		277,507		618,767		29,868		2,032,491
Special mention	—		—		—		—		—		84		—		—		84
Substandard	—		583		2,927		522		186		4,399		2,006		3,873		14,496
Doubtful	—		—		—		—		—		—		—		—		—
Total Consumer Real Estate	161,896		221,288		300,460		306,962		119,961		281,990		620,773		33,741		2,047,071
Year-to-date Gross Charge-offs	5		35		134		2		—		156		31		465		828
Other Consumer
Pass	7,016		5,253		3,919		3,869		1,090		984		59,304		9,640		91,075
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		13		—		10		143		—		39		205
Doubtful	—		—		—		—		—		—		—		—		—
Total Other Consumer	7,016		5,253		3,932		3,869		1,100		1,127		59,304		9,679		91,280
Year-to-date Gross Charge-offs	1,027		35		36		73		30		58		1		693		1,953
Pass	1,166,736		885,598		979,038		975,693		685,519		1,821,062		1,322,643		39,961		7,876,250
Special mention	—		3,651		2,423		8,686		3,288		42,371		8,437		161		69,017
Substandard	—		1,452		13,912		4,430		33,354		37,542		30,010		4,380		125,080
Doubtful	—		—		—		—		—		—		1,610		—		1,610
Total Loan Balance	$	1,166,736	$	890,701	$	995,373	$	988,809	$	722,161	$	1,900,975	$	1,362,700	$	44,502	$	8,071,957
Year-to-date Gross Charge-offs	$	1,288	$	89	$	4,316	$	5,311	$	255	$	5,434	$	224	$	1,158	$	18,075

The following tables present the aging analysis of past due loans segregated by class of loans at the dates presented:

	June 30, 2026
(dollars in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		Nonaccrual		Total Past Due Loans		Total Loans
Commercial real estate	$	2,773,080	$	—	$	4,301	$	6,937	$	11,238	$	2,784,318
Commercial and industrial	1,391,791		—		—		16,243		16,243		1,408,034
Commercial construction	466,210		—		—		—		—		466,210
Business banking	1,281,110		711		2,294		5,018		8,023		1,289,133
Consumer real estate	2,013,568		2,697		2,462		11,878		17,037		2,030,605
Other consumer	78,900		1,029		17		140		1,186		80,086
Total	$	8,004,659	$	4,437	$	9,074	$	40,216	$	53,727	$	8,058,386

	December 31, 2025
(dollars in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		Nonaccrual		Total Past Due Loans		Total Loans
Commercial real estate	$	2,906,576	$	—	$	—	$	15,185	$	15,185	$	2,921,761
Commercial and industrial	1,305,388		311		—		24,906		25,217		1,330,605
Commercial construction	364,508		—		—		869		869		365,377
Business banking	1,308,368		999		2,920		3,576		7,495		1,315,863
Consumer real estate	2,028,472		3,281		4,454		10,864		18,599		2,047,071
Other consumer	90,503		604		15		158		777		91,280
Total	$	8,003,815	$	5,195	$	7,389	$	55,558	$	68,142	$	8,071,957

The following tables present loans on nonaccrual status by class of loan for the year-to-date periods presented:

	June 30, 2026
(dollars in thousands)	Beginning of Period Nonaccrual		End of Period Nonaccrual		Nonaccrual With No Related Allowance		Interest Income Recognized on Nonaccrual(1)
Commercial Real Estate	$	15,185	$	6,937	$	6,937	$	169
Commercial and industrial	24,906		16,243		3,325		192
Commercial construction	869		—		—		4
Business banking	3,576		5,018		2,281		63
Consumer real estate	10,864		11,878		—		221
Other consumer	158		140		—		1
Total	$	55,558	$	40,216	$	12,543	$	650

(1) Represents only cash payments received and applied to interest on nonaccrual loans.

	December 31, 2025
(dollars in thousands)	Beginning of Period Nonaccrual		End of Period Nonaccrual		Nonaccrual With No Related Allowance		Interest Income Recognized on Nonaccrual(1)
Commercial real estate	$	3,228	$	15,185	$	14,936	$	123
Commercial and industrial	11,173		24,906		12,585		202
Commercial construction	—		869		—		581
Business banking	2,988		3,576		—		198
Consumer real estate	10,318		10,864		—		592
Other consumer	230		158		—		3
Total	$	27,937	$	55,558	$	27,521	$	1,699

(1) Represents only cash payments received and applied to interest on nonaccrual loans.

The following tables present loans that are individually evaluated and collateral-dependent at the dates presented:

	June 30, 2026
	Type of Collateral
(dollars in thousands)	Real Estate		Business Assets
Commercial real estate	$	6,937	$	—
Commercial and industrial	—		13,761
Business banking	2,281		—
Total	$	9,218	$	13,761

	December 31, 2025
	Type of Collateral
(dollars in thousands)	Real Estate		Business Assets
Commercial real estate	$	14,936	$	—
Commercial and industrial	—		24,835
Total	$	14,936	$	24,835

The following tables present activity in the ACL for the periods presented:

	Three Months Ended June 30, 2026
(dollars in thousands)	Commercial Real Estate		Commercial and Industrial		Commercial Construction		Business Banking		Consumer Real Estate		Other Consumer		Total Loans
Allowance for credit losses on loans:
Balance at beginning of period	$	28,385	$	30,693	$	4,653	$	10,919	$	16,181	$	2,440	$	93,271
Provision for credit losses on loans(1)	190		722		715		(120)		(84)		(379)		1,044
Charge-offs	—		(555)		(69)		(263)		(201)		(148)		(1,236)
Recoveries	2		34		—		91		69		45		241
Net (Charge-offs) Recoveries	2		(521)		(69)		(172)		(132)		(103)		(995)
Balance at End of Period	$	28,577	$	30,894	$	5,299	$	10,627	$	15,965	$	1,958	$	93,320
(1) Excludes the provision for credit losses for unfunded commitments.

	Three Months Ended June 30, 2025
(dollars in thousands)	Commercial Real Estate		Commercial and Industrial		Commercial Construction		Business Banking		Consumer Real Estate		Other Consumer		Total Loans
Allowance for credit losses on loans:
Balance at beginning of period	$	29,895	$	33,414	$	5,880	$	11,213	$	15,907	$	2,701	$	99,010
Provision for credit losses on loans(1)	438		(1,157)		677		387		(206)		589		728
Charge-offs	—		(256)		(89)		(179)		(390)		(742)		(1,656)
Recoveries	2		79		—		40		216		161		498
Net (Charge-offs) Recoveries	2		(177)		(89)		(139)		(174)		(581)		(1,158)
Balance at End of Period	$	30,335	$	32,080	$	6,468	$	11,461	$	15,527	$	2,709	$	98,580
(1) Excludes the provision for credit losses for unfunded commitments.

The following tables present activity in the ACL for the periods presented:

	Six Months Ended June 30, 2026
(dollars in thousands)	Commercial Real Estate		Commercial and Industrial		Commercial Construction		Business Banking		Consumer Real Estate		Other Consumer		Total Loans
Allowance for credit losses on loans:
Balance at beginning of period	$	29,357	$	29,142	$	4,400	$	11,335	$	16,297	$	2,647	$	93,178
Provision for credit losses on loans(1)	(784)		2,406		968		—		63		171		2,824
Charge-offs	—		(753)		(69)		(817)		(502)		(1,030)		(3,171)
Recoveries	4		99		—		109		107		170		489
Net (Charge-offs) Recoveries	4		(654)		(69)		(708)		(395)		(860)		(2,682)
Balance at End of Period	$	28,577	$	30,894	$	5,299	$	10,627	$	15,965	$	1,958	$	93,320
(1) Excludes the provision for credit losses for unfunded commitments.

	Six Months Ended June 30, 2025
(dollars in thousands)	Commercial Real Estate		Commercial and Industrial		Commercial Construction		Business Banking		Consumer Real Estate		Other Consumer		Total Loans
Allowance for credit losses on loans:
Balance at beginning of period	$	30,254	$	37,084	$	4,893	$	10,681	$	15,776	$	2,806	$	101,494
Provision for credit losses on loans(1)	(54)		(4,800)		1,694		1,037		(47)		387		(1,783)
Charge-offs	—		(428)		(119)		(322)		(552)		(1,119)		(2,540)
Recoveries	135		224		—		65		350		635		1,409
Net (Charge-offs) Recoveries	135		(204)		(119)		(257)		(202)		(484)		(1,131)
Balance at End of Period	$	30,335	$	32,080	$	6,468	$	11,461	$	15,527	$	2,709	$	98,580
(1) Excludes the provision for credit losses for unfunded commitments.