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Loans, Allowance for Credit Losses and Credit Quality

6 Months Ended

Jun. 30, 2026

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, 2026
	(Dollars in thousands)
	Commercial and Industrial		Commercial Real Estate		Commercial Construction		Residential Real Estate		Home Equity		Other Consumer		Total
Allowance for credit losses
Beginning balance	$	49,282	$	82,992	$	14,212	$	29,900	$	13,268	$	906	$	190,560


Charge-offs	(538)		(146)		—		—		(2)		(1,179)		(1,865)
Recoveries	74		88		—		—		45		747		954

Provision for (release of) credit losses	8,062		(4,055)		(341)		1,643		251		690		6,250
Ending balance (1)	$	56,880	$	78,879	$	13,871	$	31,543	$	13,562	$	1,164	$	195,899

	Three Months Ended June 30, 2025
	(Dollars in thousands)
	Commercial and Industrial		Commercial Real Estate		Commercial Construction		Residential Real Estate		Home Equity		Other Consumer		Total
Allowance for credit losses
Beginning balance	$	37,219	$	61,416	$	8,377	$	25,469	$	10,846	$	765	$	144,092
Charge-offs	(2,845)		(3,348)		—		—		—		(773)		(6,966)
Recoveries	52		1		—		—		49		345		447
Provision for (release of) credit losses	4,025		2,858		(194)		(55)		16		550		7,200
Ending balance (1)	$	38,451	$	60,927	$	8,183	$	25,414	$	10,911	$	887	$	144,773

	Six Months Ended June 30, 2026
	(Dollars in thousands)
	Commercial and Industrial		Commercial Real Estate		Commercial Construction		Residential Real Estate		Home Equity		Other Consumer		Total
Allowance for credit losses
Beginning balance	$	47,976	$	84,916	$	14,254	$	29,254	$	12,376	$	1,101	$	189,877
Charge-offs	(1,008)		(4,370)		—		—		(2)		(2,261)		(7,641)
Recoveries	233		278		—		—		57		1,345		1,913

Provision for credit losses	9,679		(1,945)		(383)		2,289		1,131		979		11,750
Ending balance (1)	$	56,880	$	78,879	$	13,871	$	31,543	$	13,562	$	1,164	$	195,899

	Six Months Ended June 30, 2025
	(Dollars in thousands)
	Commercial and Industrial		Commercial Real Estate		Commercial Construction		Residential Real Estate		Home Equity		Other Consumer		Total
Allowance for credit losses
Beginning balance	$	30,799	$	93,718	$	8,166	$	25,238	$	11,007	$	1,056	$	169,984


Charge-offs	(3,012)		(43,344)		—		—		(96)		(1,914)		(48,366)
Recoveries	67		1		—		—		67		820		955
Provision for (release of) credit losses	10,597		10,552		17		176		(67)		925		22,200
Ending balance (1)	$	38,451	$	60,927	$	8,183	$	25,414	$	10,911	$	887	$	144,773

(1)Balances of accrued interest receivable excluded from amortized cost and the calculation of allowance for credit losses amounted to $68.3 million and $54.5 million as of June 30, 2026 and June 30, 2025, respectively.

The balance of allowance for credit losses increased $6.0 million to $195.9 million as of June 30, 2026, as compared to $189.9 million at December 31, 2025, driven by provision for credit losses of $11.8 million, partially offset by net charge-offs of $5.7 million.

Each of the following 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 non-revolving 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.

For the commercial portfolio the Company typically obtains personal guarantees for payment from individuals and/or from other corporate or business entities holding a material ownership interest in the borrowing entities. Guarantees may be either unlimited or limited with respect to guaranteed loan amounts or with respect to other terms and conditions.

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, non-performing and/or put on non-accrual 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 June 30, 2026, and gross charge-offs for the six month period then ended:


	June 30, 2026
	2026		2025		2024		2023		2022		Prior		Revolving Loans		Revolving converted to Term(1)		Total(2)
	(Dollars in thousands)
Commercial and industrial
Pass	$	441,443	$	825,841	$	594,083	$	398,924	$	369,658	$	962,033	$	921,980	$	10,140	$	4,524,102
Special mention	4,145		50,525		22,835		5,492		3,522		17,858		12,102		—		116,479
Substandard	7,730		27,090		9,720		3,716		4,380		5,097		32,070		—		89,803
Doubtful	—		—		115		16		—		—		312		—		443
Loss	—		—		—		—		—		—		—		—		—
Total commercial and industrial	$	453,318	$	903,456	$	626,753	$	408,148	$	377,560	$	984,988	$	966,464	$	10,140	$	4,730,827
Current-period gross write-offs	$	—	$	45	$	32	$	35	$	39	$	68	$	789	$	—	$	1,008



Commercial real estate
Pass	$	644,063	$	1,135,390	$	802,981	$	831,658	$	1,123,211	$	3,025,781	$	137,975	$	—	$	7,701,059
Special mention	17,171		37,171		21,344		10,504		1,090		55,002		241		—		142,523
Substandard	3,611		1,277		26,783		14,613		1,853		30,105		—		—		78,242
Doubtful	—		22,275		—		—		—		—		—		—		22,275
Loss	—		—		—		—		—		—		—		—		—
Total commercial real estate	$	664,845	$	1,196,113	$	851,108	$	856,775	$	1,126,154	$	3,110,888	$	138,216	$	—	$	7,944,099
Current-period gross write-offs	$	—	$	4,370	$	—	$	—	$	—	$	—	$	—	$	—	$	4,370



Commercial construction
Pass	$	350,273	$	482,515	$	224,735	$	165,673	$	41,316	$	50,929	$	53,154	$	—	$	1,368,595
Special mention	24,388		46,388		—		8,939		—		—		—		—		79,715
Substandard	9,831		—		1,138		—		—		2,993		2,177		—		16,139
Doubtful	—		—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—		—
Total commercial construction	$	384,492	$	528,903	$	225,873	$	174,612	$	41,316	$	53,922	$	55,331	$	—	$	1,464,449
Current-period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—














Residential real estate
Pass	$	145,268	$	257,548	$	222,403	$	452,134	$	622,917	$	1,160,784	$	—	$	—	$	2,861,054
Default	—		262		—		1,757		1,967		5,237		—		—		9,223

Total residential real estate	$	145,268	$	257,810	$	222,403	$	453,891	$	624,884	$	1,166,021	$	—	$	—	$	2,870,277
Current-period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—



Home equity
Pass	$	4,086	$	10,052	$	11,919	$	16,835	$	27,957	$	176,222	$	1,078,968	$	12,997	$	1,339,036
Default	—		—		—		—		—		290		3,402		69		3,761

Total home equity	$	4,086	$	10,052	$	11,919	$	16,835	$	27,957	$	176,512	$	1,082,370	$	13,066	$	1,342,797
Current-period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	2	$	—	$	—	$	2



Other consumer(3)
Pass	$	400	$	1,141	$	1,478	$	1,299	$	767	$	1,361	$	35,431	$	—	$	41,877
Default	—		—		—		—		—		—		1		—		1

Total other consumer	$	400	$	1,141	$	1,478	$	1,299	$	767	$	1,361	$	35,432	$	—	$	41,878
Current-period gross write-offs	$	2,204	$	—	$	—	$	—	$	3	$	31	$	23	$	—	$	2,261

Total	$	1,652,409	$	2,897,475	$	1,939,534	$	1,911,560	$	2,198,638	$	5,493,692	$	2,277,813	$	23,206	$	18,394,327
Total current-period gross write-offs	$	2,204	$	4,415	$	32	$	35	$	42	$	101	$	812	$	—	$	7,641

The following table details the amortized cost balances of the Company’s loan portfolios, presented by credit quality indicator and origination year, as of December 31, 2025, and gross charge-offs for the year then ended:


	December 31, 2025
	2025		2024		2023		2022		2021		Prior		Revolving Loans		Revolving converted to Term(1)		Total(2)
	(Dollars in thousands)
Commercial and industrial
Pass	$	1,050,723	$	674,956	$	427,794	$	408,646	$	310,331	$	777,748	$	802,675	$	—	$	4,452,873
Special mention	22,454		8,171		7,458		4,700		10,241		7,253		17,091		—		77,368
Substandard	28,004		15,826		445		5,045		2,358		2,306		27,544		—		81,528
Doubtful	—		—		20		—		—		—		—		—		20
Loss	—		—		—		—		—		—		—		—		—
Total commercial and industrial	$	1,101,181	$	698,953	$	435,717	$	418,391	$	322,930	$	787,307	$	847,310	$	—	$	4,611,789
Current-period gross write-offs	$	—	$	42	$	62	$	98	$	900	$	76	$	7,635	$	—	$	8,813

Commercial real estate
Pass	$	1,254,204	$	868,351	$	991,179	$	1,233,528	$	1,212,646	$	2,323,268	$	153,939	$	—	$	8,037,115
Special mention	56,300		20,655		9,865		697		4,052		29,328		197		—		121,094
Substandard	25,600		32,514		20,927		1,326		10,291		4,266		—		—		94,924
Doubtful	22,275		—		—		—		—		—		—		—		22,275
Loss	—		—		—		—		—		—		—		—		—
Total commercial real estate	$	1,358,379	$	921,520	$	1,021,971	$	1,235,551	$	1,226,989	$	2,356,862	$	154,136	$	—	$	8,275,408
Current-period gross write-offs	$	8,126	$	—	$	26,862	$	—	$	7,089	$	1,335	$	—	$	—	$	43,412

Commercial construction
Pass	$	509,630	$	362,300	$	237,679	$	69,779	$	62,752	$	23,781	$	57,615	$	—	$	1,323,536
Special mention	29,634		29,516		—		—		—		—		—		—		59,150
Substandard	9,822		848		—		—		—		2,992		—		—		13,662
Doubtful	—		—		—		2,845		—		—		—		—		2,845
Loss	—		—		—		—		—		—		—		—		—
Total commercial construction	$	549,086	$	392,664	$	237,679	$	72,624	$	62,752	$	26,773	$	57,615	$	—	$	1,399,193
Current-period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential real estate
Pass	$	273,907	$	252,544	$	487,064	$	640,426	$	405,352	$	807,275	$	—	$	—	$	2,866,568
Default	—		—		742		1,626		301		4,206		—		—		6,875

Total residential real estate	$	273,907	$	252,544	$	487,806	$	642,052	$	405,653	$	811,481	$	—	$	—	$	2,873,443
Current-period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Home equity
Pass	$	10,970	$	13,118	$	18,339	$	29,574	$	43,928	$	145,224	$	1,011,854	$	21,027	$	1,294,034
Default	—		—		—		—		—		587		2,991		50		3,628

Total home equity	$	10,970	$	13,118	$	18,339	$	29,574	$	43,928	$	145,811	$	1,014,845	$	21,077	$	1,297,662
Current-period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	96	$	—	$	96

Other consumer(3)
Pass	$	1,395	$	1,781	$	1,570	$	906	$	868	$	1,067	$	38,693	$	—	$	46,280
Default	—		—		—		—		—		—		2		—		2

Total other consumer	$	1,395	$	1,781	$	1,570	$	906	$	868	$	1,067	$	38,695	$	—	$	46,282
Current-period gross write-offs	$	4,428	$	22	$	10	$	—	$	—	$	—	$	23	$	—	$	4,483

Total	$	3,294,918	$	2,280,580	$	2,203,082	$	2,399,098	$	2,063,120	$	4,129,301	$	2,112,601	$	21,077	$	18,503,777
Total current-period gross write-offs	$	12,554	$	64	$	26,934	$	98	$	7,989	$	1,411	$	7,754	$	—	$	56,804

(1)Amounts presented represent the amortized cost as of June 30, 2026 and December 31, 2025 of revolving loans that were converted to term loans during the three and twelve months then ended, respectively.

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

(3)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 2026		December 31 2025
Residential real estate portfolio
FICO score (re-scored) (1)	754		754
LTV (re-valued) (2)	56.2	%	57.2	%
Home equity portfolio
FICO score (re-scored) (1)	768		769
LTV (re-valued) (2)(3)	45.1	%	45.3	%

(1)The weighted average FICO scores for June 30, 2026 and December 31, 2025 are based upon rescores from June 2026 and December 2025, respectively. For any borrower where rescores were not available, the most recent FICO score data was used.

(2)The combined LTV ratios for June 30, 2026 and December 31, 2025 are calculated with consideration given to either the value obtained at origination or an updated automated valuation. Newly originated loans with valuations obtained in the previous 12 months will rely on the value obtained at origination. The remainder of the portfolio utilized updated automated valuation as of May 2026 and November 2025 for the purposes of the June 30, 2026 and December 31, 2025 ratios, respectively. If the updated value is not available, the most recent valuation or the original value will be used, depending on valuation age.

(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.

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 non-accrual loans, or sooner if management considers such action to be prudent. However, loans that are 90 days or more past due may be kept on accruing status if the loan is well secured and/or in process of collection.

The following table shows information regarding non-accrual loans as of the dates indicated:


	Non-accrual Balances
	June 30, 2026						December 31, 2025
	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	$	8,803	$	401	$	9,204	$	8,173	$	987	$	9,160
Commercial real estate	37,805		26,739		64,544		26,674		23,841		50,515
Commercial construction	2,925		—		2,925		848		2,845		3,693
Residential real estate	20,305		—		20,305		15,043		—		15,043
Home equity	6,648		—		6,648		5,102		—		5,102
Other consumer	16		—		16		44		—		44
Total non-accrual loans	$	76,502	$	27,140	$	103,642	$	55,884	$	27,673	$	83,557

(1)Non-accrual 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 non-accrual status, and, as such, the Company did not record any interest income on non-accrual loans during the three and six months ended June 30, 2026 and 2025, respectively, except for instances where non-accrual loans were paid off in excess of the recorded book balance. Total accrued interest reversed against interest income amounted to $579,000 and $224,000 for the three months ended June 30, 2026 and 2025, respectively, and $795,000 and $568,000 for the six months ended June 30, 2026 and 2025, respectively.

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


	June 30, 2026		December 31, 2025
	(Dollars in thousands)
Foreclosed residential real estate property held by the creditor	$	206	$	—
Recorded investment in mortgage loans collateralized by residential real estate property that are in the process of foreclosure	$	5,219	$	4,102

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


	June 30, 2026
	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	19	$	5,472	16	$	4,067	48	$	7,836	83	$	17,375	$	4,713,452	$	4,730,827
Commercial real estate	5	1,508		5	27,627		6	5,211		16	34,346		7,909,753		7,944,099
Commercial construction	1	802		2	878		2	2,925		5	4,605		1,459,844		1,464,449
Residential real estate	28	8,117		22	5,665		19	3,559		69	17,341		2,852,936		2,870,277
Home equity	18	975		8	1,213		23	3,761		49	5,949		1,336,848		1,342,797
Other consumer (1)	540	310		6	5		1	1		547	316		41,562		41,878
Total	611	$	17,184	59	$	39,455	99	$	23,293	769	$	79,932	$	18,314,395	$	18,394,327


	December 31, 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	36	$	7,765	18	$	3,627	35	$	5,776	89	$	17,168	$	4,594,621	$	4,611,789
Commercial real estate	15	7,037		3	619		7	10,103		25	17,759		8,257,649		8,275,408
Commercial construction	1	804		1	488		2	3,693		4	4,985		1,394,208		1,399,193
Residential real estate	20	5,592		16	3,597		18	3,278		54	12,467		2,860,976		2,873,443
Home equity	20	3,247		9	456		24	3,629		53	7,332		1,290,330		1,297,662
Other consumer (1)	624	321		15	27		3	3		642	351		45,931		46,282
Total	716	$	24,766	62	$	8,814	89	$	26,482	867	$	60,062	$	18,443,715	$	18,503,777

(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 $9.6 million and $7.7 million at June 30, 2026 and December 31, 2025, respectively. Net unamortized discounts on acquired loans included in the ending balance were $143.5 million and $157.0 million at June 30, 2026 and December 31, 2025, respectively.

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 $1.9 million and $1.8 million at June 30, 2026 and December 31, 2025, 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, 2026
	Amortized Cost Basis		% of Total Class of Financing Receivable		Financial Effect
(Dollars in thousands)



























Term Extension and Interest Rate Reduction

Commercial real estate	$	4,397	0.06%		Extended the contractual term on one loan by 1.5 years and reduced the interest rate from 7.50% to 5.50%













Total Outstanding Modified	$	4,397

	Six Months Ended June 30, 2026
	Amortized Cost Basis		% of Total Class of Financing Receivable		Financial Effect
(Dollars in thousands)
Term Extension
Commercial and industrial	$	1,090	0.02%		Added a weighted-average contractual term of 1 year to the life of the loans
Commercial real estate	14,967		0.19%		Added a weighted-average contractual term of 10 months to the life of the loans




Total	$	16,057



















Term Extension and Interest Rate Reduction

Commercial real estate	$	4,397	0.06%		Added a weighted-average contractual term of 1.5 years to the life of the loans and reduced the weighted-average interest rate from 7.50% to 5.50%




Total	$	4,397









Total Outstanding Modified	$	20,454

	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	$	4,118	0.12	%	Added a weighted-average contractual term of 1.2 years to the life of the loans
Commercial real estate	1,653		0.02	%	Extend contractual term on one loan by 3 months


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 Delays
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

Interest Rate Reduction 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	$	9,225	0.27	%	Added a weighted-average contractual term of 1 year 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

Residential real estate	272		0.01	%	Extended the 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	%	Extended the contractual term on one loan by 23.6 years and reduced the interest rate from 7.25% to 6.88%


Total	$	26,371

Interest Rate Reduction 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

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, 2026 and December 31, 2025, 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. As of both June 30, 2026 and December 31, 2025, there were no material loans to borrowers experiencing financial difficulty that were modified during the prior twelve months.

At June 30, 2026 the Company had $1.9 million in additional commitments to lend to borrowers experiencing financial difficulty and which were modified during the six months then ended. At December 31, 2025, the Company had $14.6 million in additional commitments to lend to borrowers experiencing financial difficulty whose loans had been modified during the twelve 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 CECL methodology.