| Financing Receivables |
Loans and Allowance for Credit Losses Major classifications within the Company’s held for investment loan portfolio at June 30, 2025 and December 31, 2024 are as follows:
| | | | | | | | | | | | (In thousands) | June 30, 2025 | | December 31, 2024 | | Commercial: | | | | | Business | $ | 6,328,684 | | | $ | 6,053,820 | | | Real estate – construction and land | 1,405,398 | | | 1,409,901 | | | Real estate – business | 3,757,778 | | | 3,661,218 | | | Personal Banking: | | | | | Real estate – personal | 3,058,845 | | | 3,058,195 | | | Consumer | 2,157,867 | | | 2,073,123 | | | Revolving home equity | 364,429 | | | 356,650 | | | Consumer credit card | 576,151 | | | 595,930 | | | Overdrafts | 16,316 | | | 11,266 | | | Total loans | $ | 17,665,468 | | | $ | 17,220,103 | |
Accrued interest receivable totaled $69.0 million and $70.6 million at June 30, 2025 and December 31, 2024, respectively, and was included within other assets on the consolidated balance sheets. For the three months ended June 30, 2025, the Company wrote-off accrued interest by reversing interest income of $91 thousand and $1.6 million in the Commercial and Personal Banking portfolios, respectively. Similarly, for the six months ended June 30, 2025, the Company wrote off accrued interest of $203 thousand and $3.3 million in the Commercial and Personal Banking portfolios, respectively. For the three months ended June 30, 2024, the Company reversed $341 thousand and $1.6 million in the Commercial and Personal Banking portfolios, respectively, and in the six months ended June 30, 2024, reversed $435 thousand and $3.1 million in the Commercial and Personal Banking portfolios.
At June 30, 2025, loans of $3.4 billion were pledged at the Federal Home Loan Bank as collateral for borrowings and letters of credit obtained to secure public deposits. Additional loans of $2.7 billion were pledged at the Federal Reserve Bank as collateral for discount window borrowings. Allowance for credit losses The allowance for credit losses is measured using an average historical loss model which incorporates relevant information about past events (including historical credit loss experience on loans with similar risk characteristics), current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual term of the loans. The allowance for credit losses is measured on a collective (pool) basis. Loans are aggregated into pools based on similar risk characteristics including borrower type, collateral type and expected credit loss patterns. Loans that do not share similar risk characteristics, primarily large loans on non-accrual status, are evaluated on an individual basis.
For loans evaluated for credit losses on a collective basis, average historical loss rates are calculated for each pool using the Company’s historical net charge-offs (combined charge-offs and recoveries by observable historical reporting period) and outstanding loan balances during a lookback period. Lookback periods can be different based on the individual pool and represent management’s credit expectations for the pool of loans over the remaining contractual life. In certain loan pools, if the Company’s own historical loss rate is not reflective of the loss expectations, the historical loss rate is augmented by industry and peer data. The calculated average net charge-off rate is then adjusted for current conditions and reasonable and supportable forecasts. These adjustments increase or decrease the average historical loss rate to reflect expectations of future losses given a single path economic forecast of key macroeconomic variables including GDP, disposable income, various interest rates, unemployment rate, consumer price index (CPI) inflation rate, housing price index (HPI), commercial real estate price index (CREPI) and market volatility. The adjustments are based on results from various regression models projecting the impact of the macroeconomic variables to loss rates. The forecast is used for a reasonable and supportable period before reverting back to historical averages using a straight-line method. The forecast-adjusted loss rate is applied to the amortized cost of loans over the remaining contractual lives, adjusted for expected prepayments. The contractual term excludes expected extensions (except for contractual extensions at the option of the customer), renewals and modifications. Credit cards and certain similar consumer lines of credit do not have stated maturities and therefore, for these loan classes, remaining contractual lives are determined by estimating future cash flows expected to be received from customers until payments have been fully allocated to outstanding balances. Additionally, the allowance for credit losses considers other qualitative factors not included in historical loss rates or macroeconomic forecast such as changes in portfolio composition, underwriting practices, or significant unique events or conditions. Key assumptions in the Company’s allowance for credit loss model include the economic forecast, the reasonable and supportable period, forecasted macro-economic variables, prepayment assumptions and qualitative factors applied for portfolio composition changes, underwriting practices, or significant unique events or conditions. The assumptions utilized in estimating the Company’s allowance for credit losses at June 30, 2025 and March 31, 2025 are discussed below.
| | | | | | | | | | Key Assumption | June 30, 2025 | December 31, 2024 | | | | | Overall economic forecast | •Economy in the next year is expected to benefit from deregulation, fiscal stimulus and less policy uncertainty •The forecast assumes recent reduction in tariffs between China and the US will be permanent while increases in steel and aluminum tariffs were included •Layoffs remain low | •The United States economy will grow •Expansionary fiscal policy and less immigration cause the labor market to tighten, pushing the unemployment rate lower | | Reasonable and supportable period and related reversion period | •Reasonable and supportable period of one year •Reversion to historical average loss rates within two quarters using a straight-line method | •Reasonable and supportable period of one year •Reversion to historical average loss rates within two quarters using a straight-line method | | Forecasted macro-economic variables | •Unemployment rate ranges from 4.3% to 4.4% during the supportable forecast period •Real GDP growth ranges from 1.0% to 1.6% •BBB corporate yield from 5.9% to 6.2% •Housing Price Index from 332.8 to 341.0 | •Unemployment rate ranges from 4.2% to 4.3% during the supportable forecast period •Real GDP growth ranges from 2.5% to 2.7% •BBB corporate yield from 5.2% to 5.3% •Housing Price Index from 324.8 to 335.4 | | Prepayment assumptions | Commercial loans •5% for most loan pools Personal banking loans •Ranging from 8.1% to 23.3% for most loan pools •Consumer credit cards 66.4% | Commercial loans •5% for most loan pools Personal banking loans •Ranging from 8.9% to 23.1% for most loan pools •Consumer credit cards 66.5% | | Qualitative factors | Added qualitative factors related to: •Changes in the composition of the loan portfolios •Certain industries experiencing stress or emerging concerns within the portfolio •Loans downgraded to special mention, substandard, or non-accrual status •Consumer auto and other vehicle portfolios loss expectation adjustment •Other consumer portfolio loss expectation adjustment •Certain portfolios where the model assumptions do not capture all identified loss risk | Added qualitative factors related to: •Changes in the composition of the loan portfolios •Certain industries experiencing stress or emerging concerns within the portfolio •Loans downgraded to special mention, substandard, or non-accrual status •Consumer auto portfolio •Certain portfolios where the model assumptions do not capture all identified loss risk |
The liability for unfunded lending commitments utilizes the same model as the allowance for credit losses on loans, however, the liability for unfunded lending commitments incorporates an assumption for the portion of unfunded commitments that are expected to be funded.
Sensitivity in the Allowance for Credit Loss model The allowance for credit losses is an estimate that requires significant judgment including projections of the macro-economic environment. The forecasted macro-economic environment continuously changes which can cause fluctuations in the estimate of expected credit losses.
The current forecast includes projections on the impact of the tariffs the United States ("U.S.") administration announced and noted policy uncertainty.
Policy changes and the market's response to the changes could impact inflation, labor market trends, Federal Reserve monetary policy, business growth and consumer spending. Economic, political, and social developments regionally, nationally, and even globally could significantly modify economic projections used in the estimation of the allowance for credit losses. Potential changes in any one economic variable may or may not affect the overall allowance because a variety of economic variables and inputs are considered in estimating the allowance, and changes in those variables and inputs may not occur at the same rate, may not be consistent across product types, and may have offsetting impacts to other changing variables and inputs.
A summary of the activity in the allowance for credit losses on loans and the liability for unfunded lending commitments for the three and six months ended June 30, 2025 and 2024, respectively, follows:
| | | | | | | | | | | | | | | | | | | | | | | | | For the Three Months Ended June 30, 2025 | | For the Six Months Ended June 30, 2025 | | (In thousands) | Commercial | Personal Banking |
Total | | Commercial | Personal Banking |
Total | | ALLOWANCE FOR CREDIT LOSSES ON LOANS | | | | | | | | | | | | | | | | | | | | | | | | | Balance at beginning of period | $ | 106,700 | | $ | 60,331 | | $ | 167,031 | | | $ | 106,769 | | $ | 55,973 | | $ | 162,742 | | | Provision for credit losses on loans | 185 | | 7,734 | | 7,919 | | | 539 | | 22,475 | | 23,014 | | | Deductions: | | | | | | | | | Loans charged off | 495 | | 11,530 | | 12,025 | | | 1,221 | | 24,097 | | 25,318 | | | Less recoveries on loans | 464 | | 1,871 | | 2,335 | | | 767 | | 4,055 | | 4,822 | | | Net loan charge-offs (recoveries) | 31 | | 9,659 | | 9,690 | | | 454 | | 20,042 | | 20,496 | | | Balance June 30, 2025 | $ | 106,854 | | $ | 58,406 | | $ | 165,260 | | | $ | 106,854 | | $ | 58,406 | | $ | 165,260 | | | LIABILITY FOR UNFUNDED LENDING COMMITMENTS | | | | | | | | | | | | | | | | | | | | | | | | | Balance at beginning of period | $ | 17,047 | | $ | 1,280 | | $ | 18,327 | | | $ | 17,887 | | $ | 1,048 | | $ | 18,935 | | | Provision for credit losses on unfunded lending commitments | (2,276) | | (46) | | (2,322) | | | (3,116) | | 186 | | (2,930) | | | Balance June 30, 2025 | $ | 14,771 | | $ | 1,234 | | $ | 16,005 | | | $ | 14,771 | | $ | 1,234 | | $ | 16,005 | | | ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LIABILITY FOR UNFUNDED LENDING COMMITMENTS | $ | 121,625 | | $ | 59,640 | | $ | 181,265 | | | $ | 121,625 | | $ | 59,640 | | $ | 181,265 | |
| | | | | | | | | | | | | | | | | | | | | | | | | For the Three Months Ended June 30, 2024 | | For the Six Months Ended June 30, 2024 | | (In thousands) | Commercial | Personal Banking |
Total | | Commercial | Personal Banking |
Total | | ALLOWANCE FOR CREDIT LOSSES ON LOANS | | | | | | | | | | | | | | | | | | | | | | | | | Balance at beginning of period | $ | 105,464 | | $ | 55,001 | | $ | 160,465 | | | $ | 108,201 | | $ | 54,194 | | $ | 162,395 | | | Provision for credit losses on loans | 2,367 | | 5,482 | | 7,849 | | | (488) | | 15,284 | | 14,796 | | | Deductions: | | | | | | | | | Loans charged off | 850 | | 11,018 | | 11,868 | | | 1,166 | | 21,867 | | 23,033 | | | Less recoveries on loans | 236 | | 1,875 | | 2,111 | | | 670 | | 3,729 | | 4,399 | | | Net loan charge-offs (recoveries) | 614 | | 9,143 | | 9,757 | | | 496 | | 18,138 | | 18,634 | | | Balance June 30, 2024 | $ | 107,217 | | $ | 51,340 | | $ | 158,557 | | | $ | 107,217 | | $ | 51,340 | | $ | 158,557 | | | LIABILITY FOR UNFUNDED LENDING COMMITMENTS | | | | | | | | | | | | | | | | | | | | | | | | | Balance at beginning of period | $ | 21,636 | | $ | 1,450 | | $ | 23,086 | | | $ | 23,909 | | $ | 1,337 | | $ | 25,246 | | | Provision for credit losses on unfunded lending commitments | (2,273) | | (108) | | (2,381) | | | (4,546) | | 5 | | (4,541) | | | Balance June 30, 2024 | $ | 19,363 | | $ | 1,342 | | $ | 20,705 | | | $ | 19,363 | | $ | 1,342 | | $ | 20,705 | | | ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LIABILITY FOR UNFUNDED LENDING COMMITMENTS | $ | 126,580 | | $ | 52,682 | | $ | 179,262 | | | $ | 126,580 | | $ | 52,682 | | $ | 179,262 | |
Delinquent and non-accrual loans The Company considers loans past due on the day following the contractual repayment date, if the contractual repayment was not received by the Company as of the end of the business day. The following table provides aging information on the Company’s past due and accruing loans, in addition to the balances of loans on non-accrual status, at June 30, 2025 and December 31, 2024.
| | | | | | | | | | | | | | | | | |
(In thousands) | Current or Less Than 30 Days Past Due |
30 – 89 Days Past Due | 90 Days Past Due and Still Accruing | Non-accrual |
Total | | June 30, 2025 | | | | | | | Commercial: | | | | | | | Business | $ | 6,325,992 | | $ | 1,168 | | $ | 1,114 | | $ | 410 | | $ | 6,328,684 | | | Real estate – construction and land | 1,404,827 | | 145 | | — | | 426 | | 1,405,398 | | | Real estate – business | 3,742,041 | | 628 | | — | | 15,109 | | 3,757,778 | | | Personal Banking: | | | | | | | Real estate – personal | 3,041,262 | | 5,053 | | 11,582 | | 948 | | 3,058,845 | | | Consumer | 2,130,176 | | 23,700 | | 3,991 | | — | | 2,157,867 | | | Revolving home equity | 360,725 | | 1,037 | | 690 | | 1,977 | | 364,429 | | | Consumer credit card | 560,937 | | 7,288 | | 7,926 | | — | | 576,151 | | | Overdrafts | 16,090 | | 226 | | — | | — | | 16,316 | | | Total | $ | 17,582,050 | | $ | 39,245 | | $ | 25,303 | | $ | 18,870 | | $ | 17,665,468 | | | December 31, 2024 | | | | | | | Commercial: | | | | | | | Business | $ | 6,051,654 | | $ | 1,501 | | $ | 564 | | $ | 101 | | $ | 6,053,820 | | | Real estate – construction and land | 1,409,681 | | — | | — | | 220 | | 1,409,901 | | | Real estate – business | 3,640,643 | | 5,621 | | — | | 14,954 | | 3,661,218 | | | Personal Banking: | | | | | | | Real estate – personal | 3,021,017 | | 25,267 | | 10,885 | | 1,026 | | 3,058,195 | | | Consumer | 2,029,115 | | 40,398 | | 3,610 | | — | | 2,073,123 | | | Revolving home equity | 351,056 | | 2,798 | | 819 | | 1,977 | | 356,650 | | | Consumer credit card | 579,670 | | 7,622 | | 8,638 | | — | | 595,930 | | | Overdrafts | 10,953 | | 313 | | — | | — | | 11,266 | | | Total | $ | 17,093,789 | | $ | 83,520 | | $ | 24,516 | | $ | 18,278 | | $ | 17,220,103 | |
At both June 30, 2025 and December 31, 2024, the Company had $2.0 million in non-accrual loans that had no allowance for credit loss. The Company did not record any interest income on non-accrual loans during the six months ended June 30, 2025 and 2024, respectively.
Credit quality indicators The following table provides information about the credit quality of the Commercial loan portfolio. The Company utilizes an internal risk rating system comprised of a series of grades to categorize loans according to perceived risk associated with the expectation of debt repayment based on borrower specific information including, but not limited to, current financial information, historical payment experience, industry information, collateral levels and collateral types. The “pass” category consists of a range of loan grades that reflect increasing, though still acceptable, risk. A loan is assigned the risk rating at origination and then monitored throughout the contractual term for possible risk rating changes. Movement of risk through the various grade levels in the “pass” category is monitored for early identification of credit deterioration. The “special mention” rating is applied to loans where the borrower exhibits negative financial trends due to borrower specific or systemic conditions that, if left uncorrected, threaten its capacity to meet its debt obligations. The borrower is believed to have sufficient financial flexibility to react to and resolve its negative financial situation. It is a transitional grade that is closely monitored for improvement or deterioration. The “substandard” rating is applied to loans where the borrower exhibits well-defined weaknesses that jeopardize its continued performance and are of a severity that the distinct possibility of default exists. Loans are placed on “non-accrual” when management does not expect to collect payments consistent with acceptable and agreed upon terms of repayment.
All loans are analyzed for risk rating updates annually. For larger loans, rating assessments may be more frequent if relevant information is obtained earlier through debt covenant monitoring or overall relationship management. Smaller loans are monitored as identified by the loan officer based on the risk profile of the individual borrower or if the loan becomes past due related to credit issues. Loans rated special mention, substandard or non-accrual are subject to quarterly review and monitoring processes. In addition to the regular monitoring performed by the lending personnel and credit committees, loans are subject to review by a credit review department which verifies the appropriateness of the risk ratings for the loans chosen as part of its risk-based review plan.
The risk category of loans in the Commercial portfolio as of June 30, 2025 and December 31, 2024 are as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | Term Loans Amortized Cost Basis by Origination Year | | | | (In thousands) | 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Revolving Loans Amortized Cost Basis | Total | | June 30, 2025 | | | | | | | | | | Business | | | | | | | | | | Risk Rating: | | | | | | | | | | Pass | $ | 945,508 | | $ | 1,186,213 | | $ | 710,351 | | $ | 491,234 | | $ | 310,530 | | $ | 401,536 | | $ | 2,050,589 | | $ | 6,095,961 | | | Special mention | 2,524 | | 8,267 | | 5,751 | | 5,048 | | 377 | | 1,792 | | 90,028 | | 113,787 | | | Substandard | — | | 1,130 | | 5,600 | | 19,110 | | 9,181 | | 8,216 | | 75,289 | | 118,526 | | | Non-accrual | — | | 248 | | 161 | | — | | — | | 1 | | — | | 410 | | | Total Business: | $ | 948,032 | | $ | 1,195,858 | | $ | 721,863 | | $ | 515,392 | | $ | 320,088 | | $ | 411,545 | | $ | 2,215,906 | | $ | 6,328,684 | | Gross write-offs for the six months ended June 30, 2025 | $ | — | | $ | 184 | | $ | — | | $ | — | | $ | — | | $ | 10 | | $ | 603 | | $ | 797 | | | Real estate-construction | | | | | | | | | | Risk Rating: | | | | | | | | | | Pass | $ | 159,498 | | $ | 367,770 | | $ | 431,180 | | $ | 381,011 | | $ | 22,414 | | $ | 3,548 | | $ | 22,129 | | $ | 1,387,550 | | | Special mention | 1,912 | | — | | — | | 12,996 | | — | | — | | — | | 14,908 | | | Substandard | — | | — | | 2,514 | | — | | — | | — | | — | | 2,514 | | | Non-accrual | — | | 426 | | — | | — | | — | | — | | — | | 426 | | | Total Real estate-construction: | $ | 161,410 | | $ | 368,196 | | $ | 433,694 | | $ | 394,007 | | $ | 22,414 | | $ | 3,548 | | $ | 22,129 | | $ | 1,405,398 | | Gross write-offs for the six months ended June 30, 2025 | $ | — | | $ | 24 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 24 | | | Real estate-business | | | | | | | | | | Risk Rating: | | | | | | | | | | Pass | $ | 573,010 | | $ | 632,354 | | $ | 470,837 | | $ | 694,361 | | $ | 434,922 | | $ | 594,359 | | $ | 149,678 | | $ | 3,549,521 | | | Special mention | 829 | | 18,301 | | 3,055 | | 12,780 | | 1,117 | | 2,346 | | — | | 38,428 | | | Substandard | — | | 958 | | 40,611 | | 27,393 | | 14,163 | | 64,642 | | 6,953 | | 154,720 | | | Non-accrual | — | | — | | 144 | | 292 | | 165 | | 14,508 | | — | | 15,109 | | | Total Real estate-business: | $ | 573,839 | | $ | 651,613 | | $ | 514,647 | | $ | 734,826 | | $ | 450,367 | | $ | 675,855 | | $ | 156,631 | | $ | 3,757,778 | | Gross write-offs for the six months ended June 30, 2025 | $ | — | | $ | — | | $ | 400 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 400 | | | Commercial loans | | | | | | | | | | Risk Rating: | | | | | | | | | | Pass | $ | 1,678,016 | | $ | 2,186,337 | | $ | 1,612,368 | | $ | 1,566,606 | | $ | 767,866 | | $ | 999,443 | | $ | 2,222,396 | | $ | 11,033,032 | | | Special mention | 5,265 | | 26,568 | | 8,806 | | 30,824 | | 1,494 | | 4,138 | | 90,028 | | 167,123 | | | Substandard | — | | 2,088 | | 48,725 | | 46,503 | | 23,344 | | 72,858 | | 82,242 | | 275,760 | | | Non-accrual | — | | 674 | | 305 | | 292 | | 165 | | 14,509 | | — | | 15,945 | | | Total Commercial loans: | $ | 1,683,281 | | $ | 2,215,667 | | $ | 1,670,204 | | $ | 1,644,225 | | $ | 792,869 | | $ | 1,090,948 | | $ | 2,394,666 | | $ | 11,491,860 | | Gross write-offs for the six months ended June 30, 2025 | $ | — | | $ | 208 | | $ | 400 | | $ | — | | $ | — | | $ | 10 | | $ | 603 | | $ | 1,221 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | Term Loans Amortized Cost Basis by Origination Year | | | | (In thousands) | 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Revolving Loans Amortized Cost Basis | Total | | December 31, 2024 | | | | | | | | | | Business | | | | | | | | | | Risk Rating: | | | | | | | | | | Pass | $ | 1,505,299 | | $ | 956,449 | | $ | 596,681 | | $ | 405,669 | | $ | 148,483 | | $ | 350,106 | | $ | 1,887,596 | | $ | 5,850,283 | | | Special mention | 13,576 | | 7,978 | | 8,941 | | 4,155 | | 263 | | 2,065 | | 34,997 | | 71,975 | | | Substandard | 2,218 | | 5,596 | | 19,145 | | 5,069 | | 928 | | 10,086 | | 88,419 | | 131,461 | | | Non-accrual | 1 | | 47 | | 1 | | — | | — | | 52 | | — | | 101 | | | Total Business: | $ | 1,521,094 | | $ | 970,070 | | $ | 624,768 | | $ | 414,893 | | $ | 149,674 | | $ | 362,309 | | $ | 2,011,012 | | $ | 6,053,820 | | | Gross write-offs for the year ended December 31, 2024 | $ | 200 | | $ | 275 | | $ | 40 | | $ | 53 | | $ | — | | $ | 18 | | $ | 1,387 | | $ | 1,973 | | | Real estate-construction | | | | | | | | | | Risk Rating: | | | | | | | | | | Pass | $ | 419,562 | | $ | 442,720 | | $ | 451,606 | | $ | 53,462 | | $ | 3,143 | | $ | 2,450 | | $ | 34,075 | | $ | 1,407,018 | | | Special mention | — | | — | | — | | — | | — | | — | | — | | — | | | Substandard | — | | 2,663 | | — | | — | | — | | — | | — | | 2,663 | | | Non-accrual | 220 | | — | | — | | — | | — | | — | | — | | 220 | | | Total Real estate-construction: | $ | 419,782 | | $ | 445,383 | | $ | 451,606 | | $ | 53,462 | | $ | 3,143 | | $ | 2,450 | | $ | 34,075 | | $ | 1,409,901 | | | Gross write-offs for the year ended December 31, 2024 | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | | Real estate- business | | | | | | | | | | Risk Rating: | | | | | | | | | | Pass | $ | 755,498 | | $ | 604,936 | | $ | 753,023 | | $ | 448,041 | | $ | 363,717 | | $ | 368,350 | | $ | 129,868 | | $ | 3,423,433 | | | Special mention | 324 | | — | | 12,383 | | 12,524 | | 1,643 | | 298 | | — | | 27,172 | | | Substandard | 1,280 | | 23,420 | | 36,657 | | 18,429 | | 4,416 | | 104,382 | | 7,075 | | 195,659 | | | Non-accrual | — | | — | | 170 | | — | | 14,668 | | 116 | | — | | 14,954 | | | Total Real-estate business: | $ | 757,102 | | $ | 628,356 | | $ | 802,233 | | $ | 478,994 | | $ | 384,444 | | $ | 473,146 | | $ | 136,943 | | $ | 3,661,218 | | | Gross write-offs for the year ended December 31, 2024 | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 62 | | $ | — | | $ | 62 | | | Commercial loans | | | | | | | | | | Risk Rating: | | | | | | | | | | Pass | $ | 2,680,359 | | $ | 2,004,105 | | $ | 1,801,310 | | $ | 907,172 | | $ | 515,343 | | $ | 720,906 | | $ | 2,051,539 | | $ | 10,680,734 | | | Special mention | 13,900 | | 7,978 | | 21,324 | | 16,679 | | 1,906 | | 2,363 | | 34,997 | | 99,147 | | | Substandard | 3,498 | | 31,679 | | 55,802 | | 23,498 | | 5,344 | | 114,468 | | 95,494 | | 329,783 | | | Non-accrual | 221 | | 47 | | 171 | | — | | 14,668 | | 168 | | — | | 15,275 | | | Total Commercial loans: | $ | 2,697,978 | | $ | 2,043,809 | | $ | 1,878,607 | | $ | 947,349 | | $ | 537,261 | | $ | 837,905 | | $ | 2,182,030 | | $ | 11,124,939 | | | Gross write-offs for the year ended December 31, 2024 | $ | 200 | | $ | 275 | | $ | 40 | | $ | 53 | | $ | — | | $ | 80 | | $ | 1,387 | | $ | 2,035 | |
The credit quality of Personal Banking loans is monitored primarily on the basis of aging/delinquency, and this information is provided as of June 30, 2025 and December 31, 2024 below.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | Term Loans Amortized Cost Basis by Origination Year | | | | (In thousands) | 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Revolving Loans Amortized Cost Basis | Total | | June 30, 2025 | | | | | | | | | | Real estate-personal | | | | | | | | | | Current to 90 days past due | $ | 192,556 | | $ | 349,967 | | $ | 365,298 | | $ | 386,310 | | $ | 458,799 | | $ | 1,285,630 | | $ | 7,755 | | $ | 3,046,315 | | | Over 90 days past due | — | | 573 | | 1,000 | | 2,642 | | 1,938 | | 5,429 | | — | | 11,582 | | | Non-accrual | — | | — | | — | | — | | 105 | | 843 | | — | | 948 | | | Total Real estate-personal: | $ | 192,556 | | $ | 350,540 | | $ | 366,298 | | $ | 388,952 | | $ | 460,842 | | $ | 1,291,902 | | $ | 7,755 | | $ | 3,058,845 | | Gross write-offs for the six months ended June 30, 2025 | $ | — | | $ | — | | $ | 45 | | $ | 35 | | $ | 48 | | $ | 13 | | $ | — | | $ | 141 | | | Consumer | | | | | | | | | | Current to 90 days past due | $ | 287,128 | | $ | 318,037 | | $ | 306,721 | | $ | 167,131 | | $ | 117,950 | | $ | 84,518 | | $ | 872,391 | | $ | 2,153,876 | | | Over 90 days past due | 80 | | 507 | | 435 | | 266 | | 99 | | 359 | | 2,245 | | 3,991 | | | | | | | | | | | | Total Consumer: | $ | 287,208 | | $ | 318,544 | | $ | 307,156 | | $ | 167,397 | | $ | 118,049 | | $ | 84,877 | | $ | 874,636 | | $ | 2,157,867 | | Gross write-offs for the six months ended June 30, 2025 | $ | 7 | | $ | 2,123 | | $ | 1,564 | | $ | 1,019 | | $ | 399 | | $ | 235 | | $ | 1,023 | | $ | 6,370 | | | Revolving home equity | | | | | | | | | | Current to 90 days past due | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 361,762 | | $ | 361,762 | | | Over 90 days past due | — | | — | | — | | — | | — | | — | | 690 | | 690 | | | Non-accrual | — | | — | | — | | — | | — | | — | | 1,977 | | $ | 1,977 | | | Total Revolving home equity: | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 364,429 | | $ | 364,429 | | Gross write-offs for the six months ended June 30, 2025 | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 15 | | $ | 15 | | | Consumer credit card | | | | | | | | | | Current to 90 days past due | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 568,225 | | $ | 568,225 | | | Over 90 days past due | — | | — | | — | | — | | — | | — | | 7,926 | | 7,926 | | | | | | | | | | | | Total Consumer credit card: | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 576,151 | | $ | 576,151 | | Gross write-offs for the six months ended June 30, 2025 | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 16,319 | | $ | 16,319 | | | Overdrafts | | | | | | | | | | Current to 90 days past due | $ | 16,316 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 16,316 | | | | | | | | | | | | | | | | | | | | | Total Overdrafts: | $ | 16,316 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 16,316 | | Gross write-offs for the six months ended June 30, 2025 | $ | 1,252 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 1,252 | | | Personal banking loans | | | | | | | | | | Current to 90 days past due | $ | 496,000 | | $ | 668,004 | | $ | 672,019 | | $ | 553,441 | | $ | 576,749 | | $ | 1,370,148 | | $ | 1,810,133 | | $ | 6,146,494 | | | Over 90 days past due | 80 | | 1,080 | | 1,435 | | 2,908 | | 2,037 | | 5,788 | | 10,861 | | 24,189 | | | Non-accrual | — | | — | | — | | — | | 105 | | 843 | | 1,977 | | 2,925 | | | Total Personal banking loans: | $ | 496,080 | | $ | 669,084 | | $ | 673,454 | | $ | 556,349 | | $ | 578,891 | | $ | 1,376,779 | | $ | 1,822,971 | | $ | 6,173,608 | | Gross write-offs for the six months ended June 30, 2025 | $ | 1,259 | | $ | 2,123 | | $ | 1,609 | | $ | 1,054 | | $ | 447 | | $ | 248 | | $ | 17,357 | | $ | 24,097 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | Term Loans Amortized Cost Basis by Origination Year | | | | (In thousands) | 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Revolving Loans Amortized Cost Basis | Total | | December 31, 2024 | | | | | | | | | | Real estate-personal | | | | | | | | | | Current to 90 days past due | $ | 387,119 | | $ | 387,486 | | $ | 404,680 | | $ | 482,733 | | $ | 637,115 | | $ | 736,217 | | $ | 10,934 | | $ | 3,046,284 | | | Over 90 days past due | 665 | | 892 | | 1,431 | | 1,890 | | 3,180 | | 2,827 | | — | | 10,885 | | | Non-accrual | — | | 8 | | — | | 108 | | — | | 910 | | — | | 1,026 | | | Total Real estate-personal: | $ | 387,784 | | $ | 388,386 | | $ | 406,111 | | $ | 484,731 | | $ | 640,295 | | $ | 739,954 | | $ | 10,934 | | $ | 3,058,195 | | | Gross write-offs for the year ended December 31, 2024 | $ | — | | $ | 82 | | $ | 115 | | $ | 83 | | $ | — | | $ | 22 | | $ | — | | $ | 302 | | | Consumer | | | | | | | | | | Current to 90 days past due | $ | 418,902 | | $ | 369,855 | | $ | 228,189 | | $ | 165,030 | | $ | 72,314 | | $ | 49,890 | | $ | 765,333 | | $ | 2,069,513 | | | Over 90 days past due | 465 | | 584 | | 406 | | 213 | | 47 | | 367 | | 1,528 | | 3,610 | | | | | | | | | | | | Total Consumer: | $ | 419,367 | | $ | 370,439 | | $ | 228,595 | | $ | 165,243 | | $ | 72,361 | | $ | 50,257 | | $ | 766,861 | | $ | 2,073,123 | | | Gross write-offs for the year ended December 31, 2024 | $ | 1,438 | | $ | 3,109 | | $ | 2,859 | | $ | 1,308 | | $ | 540 | | $ | 255 | | $ | 2,309 | | $ | 11,818 | | | Revolving home equity | | | | | | | | | | Current to 90 days past due | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 353,854 | | $ | 353,854 | | | Over 90 days past due | — | | — | | — | | — | | — | | — | | 819 | | 819 | | | Non-accrual | — | | — | | — | | — | | — | | — | | 1,977 | | $ | 1,977 | | | Total Revolving home equity: | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 356,650 | | $ | 356,650 | | | Gross write-offs for the year ended December 31, 2024 | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | | Consumer credit card | | | | | | | | | | Current to 90 days past due | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 587,292 | | $ | 587,292 | | | Over 90 days past due | — | | — | | — | | — | | — | | — | | 8,638 | | 8,638 | | | | | | | | | | | | Total Consumer credit card: | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 595,930 | | $ | 595,930 | | | Gross write-offs for the year ended December 31, 2024 | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 30,427 | | $ | 30,427 | | | Overdrafts | | | | | | | | | | Current to 90 days past due | $ | 11,266 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 11,266 | | | | | | | | | | | | | | | | | | | | | Total Overdrafts: | $ | 11,266 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 11,266 | | | Gross write-offs for the year ended December 31, 2024 | $ | 2,689 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 2,689 | | | Personal banking loans | | | | | | | | | | Current to 90 days past due | $ | 817,287 | | $ | 757,341 | | $ | 632,869 | | $ | 647,763 | | $ | 709,429 | | $ | 786,107 | | $ | 1,717,413 | | $ | 6,068,209 | | | Over 90 days past due | 1,130 | | 1,476 | | 1,837 | | 2,103 | | 3,227 | | 3,194 | | 10,985 | | 23,952 | | | Non-accrual | — | | 8 | | — | | 108 | | — | | 910 | | 1,977 | | 3,003 | | | Total Personal banking loans: | $ | 818,417 | | $ | 758,825 | | $ | 634,706 | | $ | 649,974 | | $ | 712,656 | | $ | 790,211 | | $ | 1,730,375 | | $ | 6,095,164 | | | Gross write-offs for the year ended December 31, 2024 | $ | 4,127 | | $ | 3,191 | | $ | 2,974 | | $ | 1,391 | | $ | 540 | | $ | 277 | | $ | 32,736 | | $ | 45,236 | |
Collateral-dependent loans The Company's collateral-dependent loans are comprised of large loans on non-accrual status. The Company requires that collateral-dependent loans are either over-collateralized or carry collateral equal to the amortized cost of the loan. The following table presents the amortized cost basis of collateral-dependent loans as of June 30, 2025 and December 31, 2024.
| | | | | | | | | | | | | (In thousands) | | | Real Estate | | Total | | June 30, 2025 | | | | | | | Commercial: | | | | | | | | | | | | | | | | | | | Real estate - business | | | $ | 14,508 | | | $ | 14,508 | | | Personal Banking: | | | | | | | | | | | | | | | | | | | Revolving home equity | | | 1,977 | | | 1,977 | | | | | | | | | | | | | | | Total | | | $ | 16,485 | | | $ | 16,485 | | | December 31, 2024 | | | | | | | Commercial: | | | | | | | | | | | | | | | | | | | Real estate - business | | | $ | 14,667 | | | $ | 14,667 | | | Personal Banking: | | | | | | | | | | | | | | | | | | | Revolving home equity | | | 1,977 | | | 1,977 | | | | | | | | | | | | | | | Total | | | $ | 16,644 | | | $ | 16,644 | |
Modifications for borrowers experiencing financial difficulty When borrowers are experiencing financial difficulty, the Company may agree to modify the contractual terms of a loan to a borrower in order to assist the borrower in repaying principal and interest owed to the Company.
The Company's modifications of loans to borrowers experiencing financial difficulty are generally in the form of term extensions, repayment plans, payment deferrals, forbearance agreements, interest rate reductions, forgiveness of interest and/or fees, or any combination thereof. Commercial loans modified to borrowers experiencing financial difficulty are primarily loans that are substandard or non-accrual, where the maturity date was extended. Modifications on personal real estate loans are primarily those placed on forbearance plans, repayment plans, or deferral plans where monthly payments are suspended for a period of time or past due amounts are paid off over a certain period of time in the future or set up as a balloon payment at maturity. Modifications to certain credit card and other small consumer loans are often modified under debt counseling programs that can reduce the contractual rate or, in certain instances, forgive certain fees and interest charges. Other consumer loans modified to borrowers experiencing financial difficulty consist of various other workout arrangements with consumer customers. The following tables present the amortized cost at June 30, 2025 of loans that were modified during the three and six months ended June 30, 2025 and the amortized cost of at June 30, 2024 of loans that were modified during the three and six months ended June 30, 2024.
| | | | | | | | | | | | | | | | | | | | | | | For the Three Months Ended June 30, 2025 |
(Dollars in thousands) | Term Extension | Payment Delay | Interest Rate Reduction | | Other | Total | % of Total Loan Category | | June 30, 2025 | | | | | | | | | Commercial: | | | | | | | | | Business | $ | 35,461 | | $ | — | | $ | — | | | $ | — | | $ | 35,461 | | 0.6 | % | | | | | | | | | | Real estate – business | 1,122 | | — | | — | | | — | | 1,122 | | — | | | Personal Banking: | | | | | | | | | Real estate – personal | — | | 3,633 | | — | | | — | | 3,633 | | 0.1 | | | Consumer | — | | 37 | | 8 | | | — | | 45 | | — | | | | | | | | | | | Consumer credit card | — | | — | | 932 | | | — | | 932 | | 0.2 | | | | | | | | | | | Total | $ | 36,583 | | $ | 3,670 | | $ | 940 | | | $ | — | | $ | 41,193 | | 0.2 | % | | | | | | | | | | For the Six Months Ended June 30, 2025 | | June 30, 2025 | | | | | | | | | Commercial: | | | | | | | | | Business | $ | 52,075 | | $ | — | | $ | — | | | $ | — | | $ | 52,075 | | 0.8 | % | | | | | | | | | | Real estate – business | 77,440 | | — | | — | | | — | | 77,440 | | 2.1 | | | Personal Banking: | | | | | | | | | Real estate – personal | — | | 6,810 | | — | | | — | | 6,810 | | 0.2 | | | Consumer | — | | 37 | | 68 | | | — | | 105 | | — | | | | | | | | | | | Consumer credit card | — | | — | | 1,696 | | | — | | 1,696 | | 0.3 | | | | | | | | | | | Total | $ | 129,515 | | $ | 6,847 | | $ | 1,764 | | | $ | — | | $ | 138,126 | | 0.8 | % |
| | | | | | | | | | | | | | | | | | | | | | | For the Three Months Ended June 30, 2024 |
(Dollars in thousands) | Term Extension | Payment Delay | Interest Rate Reduction | | Other | Total | % of Total Loan Category | | June 30, 2024 | | | | | | | | | Commercial: | | | | | | | | | Business | $ | 19,335 | | $ | — | | $ | — | | | $ | — | | $ | 19,335 | | 0.3 | % | | | | | | | | | | Real estate – business | 45,513 | | — | | — | | | — | | 45,513 | | 1.3 | | | Personal Banking: | | | | | | | | | Real estate – personal | 70 | | 1,704 | | — | | | — | | 1,774 | | 0.1 | | | Consumer | — | | — | | 30 | | | 44 | | 74 | | — | | | | | | | | | | | Consumer credit card | — | | — | | 1,124 | | | — | | 1,124 | | 0.2 | | | | | | | | | | | Total | $ | 64,918 | | $ | 1,704 | | $ | 1,154 | | | $ | 44 | | $ | 67,820 | | 0.4 | % | | | | | | | | | | For the Six Months Ended June 30, 2024 | | June 30, 2024 | | | | | | | | | Commercial: | | | | | | | | | Business | $ | 30,575 | | $ | — | | $ | — | | | $ | — | | $ | 30,575 | | 0.5 | % | | | | | | | | | | Real estate – business | 47,787 | | — | | — | | | — | | 47,787 | | 1.3 | | | Personal Banking: | | | | | | | | | Real estate – personal | 309 | | 3,975 | | — | | | — | | 4,284 | | 0.1 | | | Consumer | — | | — | | 58 | | | 44 | | 102 | | — | | | | | | | | | | | Consumer credit card | — | | — | | 1,958 | | | — | | 1,958 | | 0.3 | | | | | | | | | | | Total | $ | 78,671 | | $ | 3,975 | | $ | 2,016 | | | $ | 44 | | $ | 84,706 | | 0.5 | % |
The estimate of lifetime expected losses utilized in the allowance for credit losses model is developed using average historical experience on loans with similar risk characteristics, which includes losses from modifications of loans to borrowers experiencing financial difficulty. As a result, a change to the allowance for credit losses is generally not recorded upon modification. For modifications to loans made to borrowers experiencing financial difficulty that are placed on non-accrual status, the Company determines the allowance for credit losses on an individual evaluation, using the same process that it utilizes for other loans on non-accrual status. Modifications made to commercial loans which are not on non-accrual status for borrowers experiencing financial difficulty are collectively evaluated based on internal risk rating, loan type, delinquency, historical experience, and current economic factors. Modifications made to borrowers experiencing financial difficulty for personal banking loans which are not on non-accrual status are collectively evaluated based on loan type, delinquency, historical experience, and current economic factors.
If a loan to a borrower experiencing financial difficulty is modified and subsequently deemed uncollectible, the allowance for credit losses continues to be based on individual evaluation, if that loan is already on non-accrual status. For those loans, the allowance for credit losses is estimated using discounted expected cash flows or the fair value of collateral. If an accruing loan made to a borrower experiencing financial difficulty is modified and subsequently deemed uncollectible, the loan's risk rating is downgraded to non-accrual status and the loan's related allowance for credit losses is determined based on individual evaluation, or if necessary, the loan is charged off and collection efforts begin.
The following tables summarize the financial impact of loan modifications and payment deferrals during the three and six months ended June 30, 2025 and June 30, 2024.
| | | | | | | | | | Term Extension | | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | Commercial: | | | | Business | Extended maturity by a weighted average of 2 months. | Extended maturity by a weighted average of 6 months. | | | | | Real estate – business | Extended maturity by a weighted average of 12 months. | Extended maturity by a weighted average of 11 months. | | Personal Banking: | | | | Real estate – personal | | Extended maturity by a weighted average of 3 months. | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | Commercial: | | | | Business | Extended maturity by a weighted average of 7 months. | Extended maturity by a weighted average of 6 months. | | | | | Real estate – business | Extended maturity by a weighted average of 18 months. | Extended maturity by a weighted average of 10 months. | | Personal Banking: | | | | Real estate – personal | | Extended maturity by a weighted average of 6 months. | | | | | | | | | | | | |
| | | | | | | | | | Payment Delay | | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | | | | | | | | | | | | | Personal Banking: | | | | Real estate – personal | Deferred certain payments by a weighted average of 22 years. | Deferred certain payments by a weighted average of 4 years. | | Consumer | Deferred certain payments by a weighted average of 8 years. | | | | | | | | | | | | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | | | | | | | | | | | | | Personal Banking: | | | | Real estate – personal | Deferred certain payments by a weighted average of 23 years. | Deferred certain payments by a weighted average of 6 years. | | Consumer | Deferred certain payments by a weighted average of 8 years. | | | | | | | | | | |
| | | | | | | | | | Interest Rate Reduction | | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | | | | | | | | | | | | | Personal Banking: | | | | | | | Consumer | Reduced contractual interest rate from average 22% to 6%. | Reduced contractual interest rate from average 22% to 6%. | | | | | Consumer credit card | Reduced contractual interest rate from average 22% to 6%. | Reduced contractual interest rate from average 22% to 6%. | | | | | | | | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | | | | | | | | | | | | | Personal Banking: | | | | | | | Consumer | Reduced contractual interest rate from average 22% to 6%. | Reduced contractual interest rate from average 22% to 6%. | | | | | Consumer credit card | Reduced contractual interest rate from average 22% to 6%. | Reduced contractual interest rate from average 22% to 6%. | | | |
The Company had commitments of $12.7 million and $14.9 million at June 30, 2025 and December 31, 2024, respectively, to lend additional funds to borrowers experiencing financial difficulty and for whom the Company has modified the terms of loans in the form of an interest rate reduction; an other-than-insignificant payment delay; forgiveness of principal, interest, or fees; or a term extension during the current reporting period.
The following tables provide the amortized cost basis at June 30, 2025 of loans to borrowers experiencing financial difficulty that had a payment default during the three and six months ended June 30, 2025 and were modified within the 12 months preceding the payment default, as well as the amortized cost basis at June 30, 2024 of loans to borrowers experiencing financial difficulty that had a payment default during the three and six months ended June 30, 2024 and had been modified within the 12 months preceding the payment default. For purposes of this disclosure, the Company considers "default" to mean 90 days or more past due as to interest or principal.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the Three Months Ended June 30, 2025 | | For the Six Months Ended June 30, 2025 |
(Dollars in thousands) | Term Extension | Payment Delay | Interest Rate Reduction | Interest/Fees Forgiven | | Total | | Term Extension | Payment Delay | Interest Rate Reduction | Interest/Fees Forgiven | | Total | | June 30, 2025 | | | | | | | | | | | | | | | Commercial: | | | | | | | | | | | | | | | Business | $ | 44 | | $ | — | | $ | — | | $ | — | | | $ | 44 | | | $ | 44 | | $ | — | | $ | — | | $ | — | | | $ | 44 | | | | | | | | | | | | | | | | | Real estate – business | 14,792 | | — | | — | | — | | | 14,792 | | | 14,792 | | — | | — | | — | | | 14,792 | | | Personal Banking: | | | | | | | | | | | | | | | Real estate – personal | — | | 1,822 | | — | | — | | | 1,822 | | | — | | 2,836 | | — | | — | | | 2,836 | | | Consumer | — | | — | | 7 | | — | | | 7 | | | — | | — | | 32 | | — | | | 32 | | | | | | | | | | | | | | | | | Consumer credit card | — | | — | | 248 | | — | | | 248 | | | — | | — | | 322 | | — | | | 322 | | | | | | | | | | | | | | | | | Total | $ | 14,836 | | $ | 1,822 | | $ | 255 | | $ | — | | | $ | 16,913 | | | $ | 14,836 | | $ | 2,836 | | $ | 354 | | $ | — | | | $ | 18,026 | | | | | | | | | | | | | | | | | For the Three Months Ended June 30, 2024 | | For the Six Months Ended June 30, 2024 |
(Dollars in thousands) | Term Extension | Payment Delay | Interest Rate Reduction | Interest/Fees Forgiven | | Total | | Term Extension | Payment Delay | Interest Rate Reduction | Interest/Fees Forgiven | | Total | | June 30, 2024 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Personal Banking: | | | | | | | | | | | | | | | Real estate – personal | $ | — | | $ | 1,740 | | $ | — | | $ | — | | | $ | 1,740 | | | $ | — | | $ | 1,956 | | $ | — | | $ | — | | | $ | 1,956 | | | Consumer | — | | — | | 12 | | — | | | 12 | | | — | | — | | 12 | | — | | | 12 | | | | | | | | | | | | | | | | | Consumer credit card | — | | — | | 349 | | 12 | | | 361 | | | — | | — | | 457 | | 12 | | | 469 | | | | | | | | | | | | | | | | | Total | $ | — | | $ | 1,740 | | $ | 361 | | $ | 12 | | | $ | 2,113 | | | $ | — | | $ | 1,956 | | $ | 469 | | $ | 12 | | | $ | 2,437 | |
The following tables present the amortized cost basis at June 30, 2025 of loans to borrowers experiencing financial difficulty that had been modified within the previous 12 months as well as the amortized cost basis at June 30, 2024 of loans to borrowers experiencing financial difficulty that had been modified within the 12 months preceding June 30, 2024.
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(In thousands) | Current | 30-89 Days Past Due | 90 Days Past Due | Total | | June 30, 2025 | | | | | | Commercial: | | | | | | Business | $ | 81,600 | | $ | — | | $ | 45 | | $ | 81,645 | | | | | | | | Real estate – business | 108,690 | | — | | 14,632 | | 123,322 | | | Personal Banking: | | | | | | Real estate – personal | 9,498 | | 1,117 | | 1,822 | | 12,437 | | | Consumer | 138 | | 723 | | 7 | | 868 | | | | | | | | Consumer credit card | 2,447 | | 233 | | 248 | | 2,928 | | | | | | | | Total | $ | 202,373 | | $ | 2,073 | | $ | 16,754 | | $ | 221,200 | |
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(In thousands) | Current | 30-89 Days Past Due | 90 Days Past Due | Total | | June 30, 2024 | | | | | | Commercial: | | | | | | Business | $ | 32,565 | | $ | — | | $ | — | | $ | 32,565 | | | | | | | | Real estate – business | 74,512 | | — | | — | | 74,512 | | | Personal Banking: | | | | | | Real estate – personal | 2,129 | | 2,004 | | 1,740 | | 5,873 | | | Consumer | 172 | | 1 | | 12 | | 185 | | | | | | | | Consumer credit card | 2,337 | | 478 | | 321 | | 3,136 | | | | | | | | Total | $ | 111,715 | | $ | 2,483 | | $ | 2,073 | | $ | 116,271 | |
Loans held for sale The Company designates certain long-term fixed rate personal real estate loans as held for sale, and the Company has elected the fair value option for these loans. The election of the fair value option aligns the accounting for these loans with the related economic hedges discussed in Note 11. The loans are primarily sold to Federal Home Loan Mortgage Corporation (FHLMC) and Federal National Mortgage Association (FNMA). At June 30, 2025, the fair value of these loans was $3.5 million, and the unpaid principal balance was $3.4 million.
At June 30, 2025, none of the loans held for sale were on non-accrual status or 90 days past due and still accruing interest. Foreclosed real estate/repossessed assets The Company’s holdings of foreclosed real estate totaled $397 thousand and $343 thousand at June 30, 2025 and December 31, 2024, respectively, and included in those amounts were $397 thousand and $343 thousand at June 30, 2025 and December 31, 2024, respectively, of foreclosed residential real estate properties held as a result of obtaining physical possession. Personal property acquired in repossession, generally autos, totaled $2.7 million and $2.2 million at June 30, 2025 and December 31, 2024. Upon acquisition, these assets are recorded at fair value less estimated selling costs at the date of foreclosure, establishing a new cost basis. They are subsequently carried at the lower of this cost basis or fair value less estimated selling costs.
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