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Loans, Allowance for Credit Losses and Credit Quality

6 Months Ended

Jun. 30, 2025

Loans, Allowance for Credit Losses and Credit Quality

LOANS, ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY

Loans Held for Investment and Allowance for Credit Losses

The following table summarizes the change in allowance for credit losses by loan category, and bifurcates the amount of loans allocated to each loan category for the period indicated:


	Three Months Ended June 30, 2025
	(Dollars in thousands)
	Commercial and Industrial		Commercial Real Estate		Commercial Construction		Small Business		Residential Real Estate		Home Equity		Other Consumer		Total
Allowance for credit losses
Beginning balance	$	34,200	$	60,117	$	8,377	$	4,318	$	25,469	$	10,846	$	765	$	144,092


Charge-offs	(2,755)		(3,348)		—		(90)		—		—		(773)		(6,966)
Recoveries	13		1		—		39		—		49		345		447
Provision for (release of) credit losses	3,851		2,734		(194)		298		(55)		16		550		7,200
Ending balance (1)	$	35,309	$	59,504	$	8,183	$	4,565	$	25,414	$	10,911	$	887	$	144,773

	Three Months Ended June 30, 2024
	(Dollars in thousands)
	Commercial and Industrial		Commercial Real Estate		Commercial Construction		Small Business		Residential Real Estate		Home Equity		Other Consumer		Total
Allowance for credit losses
Beginning balance	$	35,175	$	63,243	$	7,573	$	4,028	$	24,180	$	12,042	$	707	$	146,948
Charge-offs	—		—		—		(60)		—		(11)		(737)		(808)
Recoveries	2		—		—		12		—		148		307		469
Provision for (release of) credit losses	443		2,522		231		79		656		(424)		743		4,250
Ending balance (1)	$	35,620	$	65,765	$	7,804	$	4,059	$	24,836	$	11,755	$	1,020	$	150,859

	Six Months Ended June 30, 2025
	(Dollars in thousands)
	Commercial and Industrial		Commercial Real Estate		Commercial Construction		Small Business		Residential Real Estate		Home Equity		Other Consumer		Total
Allowance for credit losses
Beginning balance	$	27,800	$	92,535	$	8,166	$	4,182	$	25,238	$	11,007	$	1,056	$	169,984
Charge-offs	(2,810)		(43,344)		—		(202)		—		(96)		(1,914)		(48,366)
Recoveries	15		1		—		52		—		67		820		955
Provision for (release of) credit losses	10,304		10,312		17		533		176		(67)		925		22,200
Ending balance (1)	$	35,309	$	59,504	$	8,183	$	4,565	$	25,414	$	10,911	$	887	$	144,773

	Six Months Ended June 30, 2024
	(Dollars in thousands)
	Commercial and Industrial		Commercial Real Estate		Commercial Construction		Small Business		Residential Real Estate		Home Equity		Other Consumer		Total
Allowance for credit losses
Beginning balance	$	33,317	$	60,074	$	7,683	$	3,963	$	23,637	$	12,797	$	751	$	142,222


Charge-offs	—		—		—		(169)		—		(11)		(1,509)		(1,689)
Recoveries	87		—		—		51		—		281		657		1,076
Provision for (release of) credit losses	2,216		5,691		121		214		1,199		(1,312)		1,121		9,250
Ending balance (1)	$	35,620	$	65,765	$	7,804	$	4,059	$	24,836	$	11,755	$	1,020	$	150,859

(1)Balances of accrued interest receivable excluded from amortized cost and the calculation of allowance for credit losses amounted to $54.5 million and $59.2 million as of June 30, 2025 and June 30, 2024, respectively.

The balance of allowance for credit losses decreased $25.2 million to $144.8 million as of June 30, 2025, as compared to $170.0 million at December 31, 2024, driven primarily by charge-offs on several classified commercial loans which had been previously reserved for, partially offset by additional specific reserve allocations on certain commercial loans during the first half of 2025.

For the purpose of estimating the allowance for credit losses, management segregated the loan portfolio into the portfolio segments detailed in the above tables. Each of these loan categories possesses unique risk characteristics that are considered when determining the appropriate level of allowance for each segment. Some of the characteristics unique to each loan category include:

Commercial Portfolio

•Commercial and Industrial: Consists of revolving, non-revolving, and term loan obligations extended to business and corporate enterprises for the purpose of financing working capital and/or capital investment, as well as loans to finance owner-occupied commercial properties. Collateral generally consists of accounts receivable, inventory, plant and equipment, real estate, or other business assets. The primary source of repayment is operating cash flow and, secondarily, liquidation of assets.

•Commercial Real Estate: Consists of mortgage loans to finance investment in real property such as multi-family residential, commercial/retail, office, industrial, hotels, educational and healthcare facilities, as well as other specific use properties and is inclusive of non-owner-occupied commercial properties. Loans are typically written with amortizing payment structures. Collateral values are determined based upon third party appraisals and evaluations. Permissible loan to value ratios at origination are governed by Company policy and regulatory guidelines. The primary source of repayment is cash flow from operating leases and rents and, secondarily, liquidation of assets.

•Commercial Construction: Consists of short-term construction loans, revolving and nonrevolving credit lines and construction/permanent loans to finance the acquisition, development and construction or rehabilitation of real property. Project types include residential land development, one-to-four family, condominium, and multi-family home construction, commercial/retail, office, industrial, hotels, educational and healthcare facilities as well as other specific use properties. Loans may be written with non-amortizing or hybrid payment structures depending upon the type of project. Collateral values are determined based upon third party appraisals and evaluations. Permissible loan to value ratios at origination are governed by Company policy and regulatory guidelines. Repayment sources vary depending upon the type of project and may consist of proceeds from the sale or lease of units, operating cash flows or liquidation of other assets.

•Small Business: Consists of revolving, term loan and mortgage obligations extended to sole proprietors and small businesses for purposes of financing working capital and/or capital investment. Collateral generally consists of pledges of business assets including, but not limited to, accounts receivable, inventory, plant and equipment, or real estate if applicable. The primary source of repayment is operating cash flows and, secondarily, liquidation of assets.

For the commercial portfolio the Company typically obtains personal guarantees for payment from individuals holding material ownership interests in the borrowing entities.

Consumer Portfolio

•Residential Real Estate: Residential mortgage loans held in the Company’s portfolio are made to borrowers who demonstrate the ability to make scheduled payments with full consideration to underwriting factors such as current and expected income, employment status, current assets, other financial resources, credit history and the value of the collateral. Collateral consists of mortgage liens on one-to-four family residential properties. Residential mortgage loans also include loans to construct owner-occupied one-to-four family residential properties.

•Home Equity: Home equity loans and credit lines are made to qualified individuals and are primarily secured by senior or junior mortgage liens on one-to-four family homes, condominiums or vacation homes. Each home equity loan has a fixed rate and is billed in equal payments comprised of principal and interest. The majority of home equity lines of credit have a variable rate and are billed in interest-only payments during the draw period. At the end of the draw period, the home equity line of credit is billed as a percentage of the then outstanding principal balance plus all accrued interest over a predetermined repayment period, as set forth in the note. Additionally, the Company has the option of renewing each line of credit for additional draw periods. Borrower qualifications include favorable credit history combined with supportive income requirements and combined loan to value ratios within established policy guidelines.

•Other Consumer: Other consumer loan products include personal lines of credit and amortizing loans made to qualified individuals for various purposes such as debt consolidation, personal expenses or overdraft protection. Borrower qualifications include favorable credit history combined with supportive income and collateral requirements within established policy guidelines. These loans may be secured or unsecured.

Credit Quality

The Company continually monitors the asset quality of the loan portfolio using all available information. Based on this information, loans demonstrating certain payment issues or other weaknesses may be categorized as adversely risk-rated, delinquent, nonperforming and/or put on nonaccrual status. Additionally, in the course of resolving such loans, the Company may choose to modify the contractual terms of certain loans to match the borrower’s ability to repay the loan based on their current financial condition.

The Company reviews numerous credit quality indicators when assessing the risk in its loan portfolio. For the commercial portfolio, the Company utilizes a 10-point credit risk-rating system, which assigns a risk-grade to each loan obligation based on a number of quantitative and qualitative factors associated with a commercial or small business loan transaction. Factors considered include industry and market conditions, position within the industry, earnings trends, operating cash flow, asset/liability values, debt capacity, guarantor strength, management and controls, financial reporting, collateral, and other considerations. The risk-rating categories for the commercial portfolio are defined as follows:

•Pass: Risk-rating “1” through “6” comprises loans ranging from ‘Substantially Risk Free’ which indicates borrowers are of unquestioned credit standing and the pinnacle of credit quality, well established companies with a very strong financial condition, and loans fully secured by cash collateral, through ‘Acceptable Risk,’ which indicates borrowers may exhibit declining earnings, strained cash flow, increasing or above average leverage and/or weakening market fundamentals that indicate below average asset quality, margins and market share. Collateral coverage is protective.

•Special Mention: Borrowers exhibit potential credit weaknesses or downward trends deserving management’s close attention. If not checked or corrected, these trends will weaken the Company’s asset and position. While potentially weak, currently these borrowers are marginally acceptable; no loss of principal or interest is envisioned.

•Substandard: Borrowers exhibit well defined weaknesses that jeopardize the orderly liquidation of debt. Loans may be inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged, if any. Normal repayment from the borrower is in jeopardy, although no loss of principal is envisioned. However, there is a distinct possibility that a partial loss of interest and/or principal will occur if the deficiencies are not corrected. Collateral coverage may be inadequate to cover the principal obligation.

•Doubtful: Borrowers exhibit well defined weaknesses that jeopardize the orderly liquidation of debt with the added provision that the weaknesses make collection of the debt in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Serious problems exist to the point where partial loss of principal is likely.

•Loss: Borrowers deemed incapable of repayment. Loans to such borrowers are considered uncollectible and of such little value that continuation as active assets of the Company is not warranted.

The Company utilizes a comprehensive, continuous strategy for evaluating and monitoring commercial credit quality. Initially, credit quality is determined at loan origination and is re-evaluated when subsequent actions, such as renewals, modifications or reviews, occur. Actively managed commercial borrowers are required to provide updated financial information at least annually which is carefully evaluated for any changes in credit quality. Larger loan relationships are subject to a full annual credit review by experienced credit professionals, while continuous portfolio monitoring techniques are employed to evaluate changes in credit quality for smaller loan relationships. Any changes in credit quality are reflected in risk-rating changes. Additionally, the Company retains an independent loan review firm to evaluate the credit quality of the commercial loan portfolio. The independent loan review process achieves significant penetration into the commercial loan portfolio and reports the results of these reviews to the Audit Committee of the Board of Directors on a quarterly basis.

For the Company’s consumer portfolio, the quality of the loan is best indicated by the repayment performance of an individual borrower. As a result, for this portfolio the Company utilizes a pass/default risk-rating system, based on an age analysis (i.e., days past due) associated with each consumer loan. Under this structure, consumer loans less than 90 days past due are assigned a “pass” rating, while any consumer loans 90 days or more past due are assigned a “default” rating.

The following table details the amortized cost balances of the Company's loan portfolios, presented by credit quality indicator and origination year as of the dates indicated below:


	June 30, 2025
	2025		2024		2023		2022		2021		Prior		Revolving Loans		Revolving converted to Term		Total (1)
	(Dollars in thousands)
Commercial and industrial
Pass	$	469,808	$	576,092	$	274,823	$	298,891	$	214,110	$	616,273	$	609,560	$	—	$	3,059,557
Special mention	12,217		17,413		7,865		1,753		2,398		2,437		41,441		—		85,524
Substandard	27,725		4,266		4,149		3,346		181		1,660		25,060		—		66,387
Doubtful	—		—		—		—		—		—		4,012		—		4,012
Loss	—		—		—		—		—		—		—		—		—
Total commercial and industrial	$	509,750	$	597,771	$	286,837	$	303,990	$	216,689	$	620,370	$	680,073	$	—	$	3,215,480
Current-period gross write-offs	$	—	$	—	$	—	$	86	$	—	$	21	$	2,703	$	—	$	2,810



Commercial real estate
Pass	$	463,592	$	722,277	$	823,443	$	841,841	$	956,044	$	2,385,395	$	99,537	$	—	$	6,292,129
Special mention	40,685		14,581		3,919		—		2,743		77,228		197		—		139,353
Substandard	13,009		27,256		—		12,776		10,051		3,965		—		—		67,057
Doubtful	22,259		—		—		—		4,640		—		—		—		26,899
Loss	—		—		—		—		—		—		—		—		—
Total commercial real estate	$	539,545	$	764,114	$	827,362	$	854,617	$	973,478	$	2,466,588	$	99,734	$	—	$	6,525,438
Current-period gross write-offs	$	8,126	$	—	$	26,863	$	—	$	7,020	$	1,335	$	—	$	—	$	43,344



Commercial construction
Pass	$	78,681	$	292,740	$	166,121	$	81,066	$	62,200	$	24,182	$	26,240	$	—	$	731,230
Special mention	—		8,977		—		16,310		—		—		—		—		25,287
Substandard	—		33,374		—		8,917		—		—		—		—		42,291
Doubtful	—		—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—		—
Total commercial construction	$	78,681	$	335,091	$	166,121	$	106,293	$	62,200	$	24,182	$	26,240	$	—	$	798,808
Current-period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—



Small business
Pass	$	33,794	$	52,247	$	39,405	$	40,819	$	30,177	$	44,388	$	56,315	$	—	$	297,145
Special mention	—		21		125		70		113		235		981		—		1,545
Substandard	238		172		12		778		—		369		284		—		1,853
Doubtful	—		—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—		—
Total small business	$	34,032	$	52,440	$	39,542	$	41,667	$	30,290	$	44,992	$	57,580	$	—	$	300,543
Current-period gross write-offs	$	—	$	—	$	14	$	—	$	—	$	—	$	188	$	—	$	202



Residential real estate
Pass	$	129,481	$	192,648	$	455,512	$	583,460	$	368,856	$	755,676	$	—	$	—	$	2,485,633
Default	—		—		378		589		735		1,831		—		—		3,533

Total residential real estate	$	129,481	$	192,648	$	455,890	$	584,049	$	369,591	$	757,507	$	—	$	—	$	2,489,166
Current-period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—



Home equity
Pass	$	3,781	$	14,278	$	20,670	$	31,208	$	47,027	$	159,164	$	878,696	$	11,199	$	1,166,023
Default	—		—		—		—		—		327		1,747		—		2,074


Total home equity	$	3,781	$	14,278	$	20,670	$	31,208	$	47,027	$	159,491	$	880,443	$	11,199	$	1,168,097
Current-period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	96	$	—	$	96



Other consumer (2)
Pass	$	761	$	415	$	221	$	69	$	343	$	937	$	33,549	$	—	$	36,295
Default	—		—		—		—		—		—		1		—		1

Total other consumer	$	761	$	415	$	221	$	69	$	343	$	937	$	33,550	$	—	$	36,296
Current-period gross write-offs	$	1,907	$	—	$	—	$	—	$	—	$	—	$	7	$	—	$	1,914

Total	$	1,296,031	$	1,956,757	$	1,796,643	$	1,921,893	$	1,699,618	$	4,074,067	$	1,777,620	$	11,199	$	14,533,828
Total current-period gross write-offs	$	10,033	$	—	$	26,877	$	86	$	7,020	$	1,356	$	2,994	$	—	$	48,366


	December 31, 2024
	2024		2023		2022		2021		2020		Prior		Revolving Loans		Revolving converted to Term		Total (1)
	(Dollars in thousands)
Commercial and industrial
Pass	$	690,411	$	302,384	$	351,296	$	243,361	$	166,779	$	504,804	$	623,730	$	1,117	$	2,883,882
Special mention	18,600		554		2,394		10,610		871		2,458		40,927		—		76,414
Substandard	16,933		4,195		5,276		27,641		139		22		21,517		—		75,723
Doubtful	—		—		—		—		—		—		11,652		—		11,652
Loss	—		—		—		—		—		—		—		—		—
Total commercial and industrial	$	725,944	$	307,133	$	358,966	$	281,612	$	167,789	$	507,284	$	697,826	$	1,117	$	3,047,671
Current-period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	5,897	$	—	$	5,897

Commercial real estate
Pass	$	774,331	$	866,492	$	907,629	$	1,036,174	$	997,858	$	1,823,148	$	98,473	$	241	$	6,504,346
Special mention	16,243		5,935		—		760		—		60,184		198		—		83,320
Substandard	53,532		13,017		12,967		10,145		916		5,836		—		—		96,413
Doubtful	—		53,752		—		11,660		—		7,217		—		—		72,629
Loss	—		—		—		—		—		—		—		—		—
Total commercial real estate	$	844,106	$	939,196	$	920,596	$	1,058,739	$	998,774	$	1,896,385	$	98,671	$	241	$	6,756,708
Current-period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial construction
Pass	$	288,979	$	173,856	$	130,245	$	62,972	$	—	$	24,583	$	32,077	$	1,756	$	714,468
Special mention	—		2,316		15,622		9,078		—		—		—		—		27,016
Substandard	31,549		—		9,045		—		—		—		—		—		40,594
Doubtful	—		—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—		—
Total commercial construction	$	320,528	$	176,172	$	154,912	$	72,050	$	—	$	24,583	$	32,077	$	1,756	$	782,078
Current-period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Small business
Pass	$	56,869	$	44,676	$	43,925	$	32,858	$	21,527	$	26,457	$	52,919	$	1	$	279,232
Special mention	—		102		16		114		93		218		607		—		1,150
Substandard	199		259		63		1		180		329		368		—		1,399
Doubtful	—		—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—		—
Total small business	$	57,068	$	45,037	$	44,004	$	32,973	$	21,800	$	27,004	$	53,894	$	1	$	281,781
Current-period gross write-offs	$	48	$	39	$	35	$	54	$	—	$	—	$	520	$	—	$	696



Residential real estate
Pass	$	197,985	$	472,546	$	607,105	$	381,182	$	173,047	$	625,111	$	—	$	—	$	2,456,976
Default	—		209		636		373		742		1,664		—		—		3,624

Total residential real estate	$	197,985	$	472,755	$	607,741	$	381,555	$	173,789	$	626,775	$	—	$	—	$	2,460,600
Current-period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Home equity
Pass	$	14,888	$	24,020	$	32,577	$	49,290	$	45,322	$	127,029	$	829,688	$	16,229	$	1,139,043
Default	—		—		—		—		—		226		803		96		1,125

Total home equity	$	14,888	$	24,020	$	32,577	$	49,290	$	45,322	$	127,255	$	830,491	$	16,325	$	1,140,168
Current-period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	241	$	139	$	380

Other consumer (2)
Pass	$	651	$	445	$	151	$	599	$	211	$	1,158	$	36,157	$	—	$	39,372
Default	—		—		—		—		—		—		—		—		—

Total other consumer	$	651	$	445	$	151	$	599	$	211	$	1,158	$	36,157	$	—	$	39,372
Current-period gross write-offs	$	3,339	$	—	$	—	$	—	$	—	$	19	$	16	$	—	$	3,374

Total	$	2,161,170	$	1,964,758	$	2,118,947	$	1,876,818	$	1,407,685	$	3,210,444	$	1,749,116	$	19,440	$	14,508,378
Total current -period gross write-offs	$	3,387	$	39	$	35	$	54	$	—	$	19	$	6,674	$	139	$	10,347

(1)Loan origination dates in the tables above reflect the original origination date, or the date of a material modification of a previously originated loan.

(2)Other consumer portfolio is inclusive of deposit account overdrafts recorded as loan balances and the associated gross write-offs.

For the Company’s consumer portfolio, the quality of the loan is best indicated by the repayment performance of an individual borrower. However, the Company does supplement performance data with current Fair Isaac Corporation (“FICO”) scores and Loan to Value (“LTV”) estimates. Current FICO data is purchased and appended to all consumer loans on a regular basis. In addition, automated valuation services and broker opinions of value are used to supplement original value data for the residential real estate and home equity portfolios, periodically. The following table shows the weighted average FICO scores and the weighted average combined LTV ratios at the dates indicated below:


	June 30 2025		December 31 2024
Residential real estate portfolio
FICO score (re-scored)(1)	756		755
LTV (re-valued)(2)	56.9	%	57.9	%
Home equity portfolio
FICO score (re-scored)(1)	770		769
LTV (re-valued)(2)(3)	43.5	%	43.9	%

(1)The average FICO scores at June 30, 2025 are based upon rescores from March 2025, as available for previously originated loans, or the origination score data for loans booked since March 2025. The average FICO scores at December 31, 2024 were based upon rescores from December 2024, as available for previously originated loans, or origination score data for loans booked in December 2024.

(2)The combined LTV ratios for June 30, 2025 are based upon updated automated valuations as of May 2025, when available, and/or the most current valuation data available. The combined LTV ratios for December 31, 2024 were based upon updated automated valuations as of November 2024, when available, and/or the most current valuation data available. The updated automated valuations provide new information on loans that may be available since the previous valuation was obtained. If no new information is available, the valuation will default to the previously obtained data or most recent appraisal.

(3)For home equity loans and lines in a subordinate lien, the LTV data represents a combined LTV, taking into account the senior lien data for loans and lines.

Unfunded Commitments

Management evaluates the need for a reserve on unfunded lending commitments in a manner consistent with loans held for investment. The Company's estimated reserve for unfunded commitments amounted to $1.4 million at both June 30, 2025 and December 31, 2024.

The Company’s philosophy toward managing its loan portfolios is predicated upon careful monitoring, which stresses early detection and response to delinquent and default situations. Delinquent loans are managed by a team of collection specialists and the Company seeks to make arrangements to resolve any delinquent or default situation over the shortest possible time frame. As a general rule, loans 90 days or more past due with respect to principal or interest are classified as nonaccrual loans. The Company also may use discretion regarding other loans 90 days or more delinquent if the loan is well secured and/or in process of collection.

The following table shows information regarding nonaccrual loans as of the dates indicated:


	Nonaccrual Balances
	June 30, 2025						December 31, 2024
	With Allowance for Credit Losses		Without Allowance for Credit Losses (1)		Total		With Allowance for Credit Losses		Without Allowance for Credit Losses (1)		Total
	(Dollars in thousands)
Commercial and industrial	$	13,544	$	—	$	13,544	$	2,500	$	11,652	$	14,152
Commercial real estate	4,892		23,825		28,717		67,126		7,217		74,343

Small business	173		—		173		302		—		302
Residential real estate	10,013		—		10,013		10,243		—		10,243
Home equity	3,765		—		3,765		2,479		—		2,479
Other consumer	5		—		5		10		—		10
Total nonaccrual loans	$	32,392	$	23,825	$	56,217	$	82,660	$	18,869	$	101,529

(1)Nonaccrual balances reported above without an allowance for credit losses are attributable to loans evaluated on an individual basis where it was determined that there was no risk of loss due to sufficient underlying collateral values.

It is the Company’s policy to reverse any accrued interest when a loan is put on nonaccrual status, and, as such, the Company did not record any interest income on nonaccrual loans during the three and six months ended June 30, 2025 and 2024, respectively, except for instances where nonaccrual loans were paid off in excess of the recorded book balance. Total accrued interest reversed against interest income amounted to $224,000 and $112,000 for the three months ended June 30, 2025 and 2024, respectively, and $568,000 and $497,000 for the six months ended June 30, 2025 and 2024, respectively.

The following table shows information regarding foreclosed residential real estate property at the dates indicated:


	June 30, 2025		December 31, 2024
	(Dollars in thousands)
Foreclosed residential real estate property held by the creditor	$	—	$	—
Recorded investment in mortgage loans collateralized by residential real estate property that are in the process of foreclosure	$	1,974	$	1,301

The following tables show the age analysis of past due financing receivables as of the dates indicated:


	June 30, 2025
	30-59 days			60-89 days			90 days or more			Total Past Due					Total Financing Receivables (2)
	Number of Loans	Principal Balance		Number of Loans	Principal Balance		Number of Loans	Principal Balance		Number of Loans	Principal Balance		Current
	(Dollars in thousands)
Loan Portfolio
Commercial and industrial	3	$	183	3	$	1,184	8	$	4,673	14	$	6,040	$	3,209,440	$	3,215,480
Commercial real estate	6	4,399		2	826		3	6,206		11	11,431		6,514,007		6,525,438
Commercial construction	—	—		—	—		—	—		—	—		798,808		798,808
Small business	8	74		14	272		4	58		26	404		300,139		300,543
Residential real estate	18	3,607		6	1,398		12	2,134		36	7,139		2,482,027		2,489,166
Home equity	7	874		5	326		19	2,074		31	3,274		1,164,823		1,168,097
Other consumer (1)	420	231		6	16		3	1		429	248		36,048		36,296
Total	462	$	9,368	36	$	4,022	49	$	15,146	547	$	28,536	$	14,505,292	$	14,533,828


	December 31, 2024
	30-59 days			60-89 days			90 days or more			Total Past Due					Total Financing Receivables (2)
	Number of Loans	Principal Balance		Number of Loans	Principal Balance		Number of Loans	Principal Balance		Number of Loans	Principal Balance		Current
	(Dollars in thousands)
Loan Portfolio
Commercial and industrial	7	$	5,807	1	$	5	5	$	13,843	13	$	19,655	$	3,028,016	$	3,047,671
Commercial real estate	3	33,087		—	—		3	20,458		6	53,545		6,703,163		6,756,708
Commercial construction	—	—		—	—		—	—		—	—		782,078		782,078
Small business	6	830		4	24		3	29		13	883		280,898		281,781
Residential real estate	27	6,310		9	1,401		10	2,224		46	9,935		2,450,665		2,460,600
Home equity	9	1,046		11	764		10	1,126		30	2,936		1,137,232		1,140,168
Other consumer (1)	596	441		3	7		6	6		605	454		38,918		39,372
Total	648	$	47,521	28	$	2,201	37	$	37,686	713	$	87,408	$	14,420,970	$	14,508,378

(1)Other consumer portfolio is inclusive of deposit account overdrafts recorded as loan balances.

(2)The amount of net deferred fees/costs on originated loans included in the ending balance was $6.8 million and $6.1 million at June 30, 2025 and December 31, 2024, respectively. Net unamortized discounts on acquired loans included in the ending balance were $7.5 million and $8.1 million at June 30, 2025 and December 31, 2024, respectively.

Loan Modifications

The following tables present the period end amortized cost basis of loans modified to borrowers experiencing financial difficulty during the periods indicated, disaggregated by class of financing receivable, type of modification granted and the financial effect of the modifications:


	Three Months Ended June 30, 2025
	Amortized Cost Basis		% of Total Class of Financing Receivable		Financial Effect
(Dollars in thousands)
Term Extension
Commercial and industrial	$	3,879	0.12	%	Extended contractual term on one loan by 1 year
Commercial real estate	1,653		0.03	%	Extended contractual term on one loan by 3 months

Small business	239		0.08	%	Extended contractual term on one loan by 5.2 years

Home equity	245		0.02	%	Added a weighted-average contractual term of 5.2 years to the life of the loans

Total	$	6,016











Other Than Insignificant Payment Delay
Commercial and industrial	$	1,036	0.03	%	Modification was made with minimal financial effect






Total	$	1,036

Term Extension and Interest Rate Reduction
Commercial and industrial	$	93	—%		Extended the contractual term on one loan by 5.0 years and reduced the interest rate from 9.50% to 6.69%
Commercial real estate	13,015		0.20%		Extended the contractual term on one loan by 3.0 years and reduced the interest rate from 7.70% to 6.25%



Home equity	229		0.02%		Extended the contractual term on one loan by 17.5 years and reduced the interest rate from 7.24% to 6.88%


Total	$	13,337
Term Extension and Other Than Insignificant Payment Delay

Commercial real estate	$	22,248	0.34%	Modification on one loan included an interest rate reduction from 5.91% to 5.50% and payment deferral of 13 months





Total	$	22,248
Total Outstanding Modified	$	42,637

	Six Months Ended June 30, 2025
	Amortized Cost Basis		% of Total Class of Financing Receivable	Financial Effect
(Dollars in thousands)
Term Extension
Commercial and industrial	$	8,986	0.28%	Added a weighted-average contractual term of 11 months to the life of the loans
Commercial real estate	5,028		0.08%	Added a weighted-average contractual term of 5 months to the life of the loans

Small business	239		0.08%	Extended contractual term on one loan by 5.2 years
Residential real estate	272		0.01%	Extended contractual term on one loan by 17.8 years
Home equity	245		0.02%	Added a weighted-average contractual term of 5.2 years to the life of the loans

Total	$	14,770











Other Than Insignificant Payment Delay
Commercial and industrial	$	1,036	0.03%	Modification was made with minimal financial effect
Commercial real estate	11,002		0.17%	Modification was made with minimal financial effect





Total	$	12,038

Term Extension and Interest Rate Reduction
Commercial and industrial	$	93	—%	Extended the contractual term on one loan by 5.0 years and reduced the interest rate from 9.50% to 6.69%
Commercial real estate	25,093		0.38%	Added a weighted-average contractual term of 3.7 years to the life of the loans and reduced the weighted-average interest rate from 7.85% to 6.83%



Home equity	1,185		0.10%	Added a weighted-average contractual term of 23.6 years to the life of the loans and reduced the weighted-average interest rate from 7.25% to 6.88%

Total	$	26,371

Term Extension and Other Than Insignificant Payment Delay

Commercial real estate	$	22,248	0.34%	Modification on one loan included an interest rate reduction from 5.91% to 5.50% and payment deferral of 13 months





Total	$	22,248
Total Outstanding Modified	$	75,427


	Three Months Ended June 30, 2024
	Amortized Cost Basis		% of Total Class of Financing Receivable		Financial Effect
(Dollars in thousands)
Term Extension
Commercial and industrial	$	12,667	0.42	%	Added a weighted-average contractual term of 2.3 years to the life of the loans
Commercial real estate	28,239		0.42	%	Added a weighted-average contractual term of 5 months to the life of the loans
Commercial construction	4,452		0.57	%	Extended contractual term on one loan by 12 months

Residential real estate	298		0.01	%	Extended contractual term on one loan by 6.2 years


Total	$	45,656

Interest Rate Reduction





Home equity	$	65	0.01	%	Reduced contractual rate on one loan from 7.99% to 7.00%

Total	$	65











Term Extension and Interest Rate Reduction



Small business	$	36	0.01	%	Extended the contractual term on one loan by 2.5 years and reduced the loan’s contractual interest rate from 10.25% to 6.50%



Total	$	36










Total Outstanding Modified	$	45,757


	Six Months Ended June 30, 2024
	Amortized Cost Basis		% of Total Class of Financing Receivable		Financial Effect
(Dollars in thousands)
Term Extension
Commercial and industrial	$	12,670	0.42	%	Added a weighted-average contractual term of 2.3 years to the life of the loans
Commercial real estate	31,614		0.47	%	Added a weighted-average contractual term of 5 months to the life of the loans
Commercial construction	6,542		0.83	%	Added a weighted-average contractual term of 10 months to the life of the loans

Residential real estate	298		0.01	%	Extended the contractual term on one loan by 6.2 years


Total	$	51,124

Interest Rate Reduction



Small business	$	47	0.02	%	Reduced contractual rate on one loan from 11.00% to 8.20%

Home equity	65		0.01	%	Reduced contractual rate on one loan from 7.99% to 7.00%

Total	$	112



Other Than Insignificant Payment Delay
Commercial and industrial	$	8,159	0.27	%	Modification was made with minimal financial effect






Total	$	8,159

Term Extension and Interest Rate Reduction
Commercial and industrial	$	152	0.01	%	Extended the contractual term on one loan by 1.5 years and reduced the interest rate from 10.10% to 7.20%


Small business	36		0.01	%	Extended the contractual term on one loan by 2.5 years and reduced the interest rate on one loan from 10.25% to 6.50%

Home equity	70		0.01	%	Extended the contractual term on one loan by 8.1 years and reduced the interest rate from 10.00% to 6.80%

Total	$	258










Total Outstanding Modified	$	59,653

The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. At June 30, 2025, all material loans modified to borrowers experiencing financial difficulty during the previous twelve months were performing in accordance with modified terms, with the exception of one $4.6 million commercial real estate loan that was greater than 90 days past due at period end and in the process of being resolved. At June 30, 2024, all material loans modified to borrowers experiencing financial difficulty during the previous twelve months were performing in accordance with modified terms.

The Company considers a loan to have defaulted when it reaches 90 days past due. During the three and six months ended June 30, 2025 and June 30, 2024, respectively, there were no material loans that had a payment default during the period and were modified to a borrower experiencing financial difficulty in the previous twelve months.

At June 30, 2025, the Company had $4.6 million in additional commitments to lend to one borrower experiencing financial difficulty whose loan was modified and included in the above tables for the six months then ended. At June 30, 2024, the Company had $275,000 in additional commitments to lend to one borrower experiencing financial difficulty, whose loan was modified and included in the above tables for the six months then ended.

Loan modifications to borrowers experiencing financial difficulty are evaluated on a collective basis with loans sharing similar risk characteristics in accordance with the current expected credit loss (“CECL”) methodology.