LOANS AND LEASES (Tables)

6 Months Ended

Jun. 30, 2025

Financial Receivable Credit Quality Indicators

The following table sets forth the Company's loan portfolio at June 30, 2025 by risk attribute and origination date as well as current period gross chargeoffs:


(Dollars in thousands)	2025		2024		2023		2022		2021		Prior		Term Total		Revolving		Total
Commercial & industrial
Pass	$	536,360	$	666,093	$	580,092	$	502,435	$	226,018	$	330,558	$	2,841,556	$	972,981	$	3,814,537
Special mention	4,072		1,288		1,065		3,091		6,470		10,947		26,933		23,595		50,528
Substandard	1,126		4,961		11,017		12,565		5,372		3,810		38,851		23,855		62,706
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	541,558	$	672,342	$	592,174	$	518,091	$	237,860	$	345,315	$	2,907,340	$	1,020,431	$	3,927,771
YTD Gross chargeoffs	$	0	$	728	$	8,214	$	3,511	$	147	$	425	$	13,025	$	149	$	13,174
Lease financing
Pass	$	73,288	$	241,385	$	184,705	$	56,555	$	9,429	$	4,597	$	569,959	$	0	$	569,959
Special mention	0		184		123		5,234		0		0		5,541		0		5,541
Substandard	750		62		5,440		4,722		570		132		11,676		0		11,676
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	74,038	$	241,631	$	190,268	$	66,511	$	9,999	$	4,729	$	587,176	$	0	$	587,176
YTD Gross chargeoffs	$	0	$	491	$	1,060	$	495	$	0	$	14	$	2,060	$	0	$	2,060
Construction real estate
Pass	$	68,112	$	198,271	$	186,387	$	185,842	$	40,687	$	7,607	$	686,906	$	0	$	686,906
Special mention	0		0		0		13,500		0		16,360		29,860		0		29,860
Substandard	0		0		0		14,646		0		1,365		16,011		0		16,011
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	68,112	$	198,271	$	186,387	$	213,988	$	40,687	$	25,332	$	732,777	$	0	$	732,777
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Commercial real estate - investor
Pass	$	202,130	$	422,019	$	389,442	$	482,321	$	287,536	$	1,073,507	$	2,856,955	$	31,621	$	2,888,576
Special mention	12,485		0		17,040		13,284		0		29,071		71,880		0		71,880
Substandard	0		0		0		10,600		0		36,183		46,783		0		46,783


(Dollars in thousands)	2025		2024		2023		2022		2021		Prior		Term Total		Revolving		Total
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	214,615	$	422,019	$	406,482	$	506,205	$	287,536	$	1,138,761	$	2,975,618	$	31,621	$	3,007,239
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Commercial real estate - owner
Pass	$	68,712	$	195,741	$	119,095	$	150,386	$	86,718	$	284,627	$	905,279	$	20,241	$	925,520
Special mention	369		574		0		207		1,754		7,564		10,468		0		10,468
Substandard	106		2,635		0		1,001		2,408		12,136		18,286		0		18,286
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	69,187	$	198,950	$	119,095	$	151,594	$	90,880	$	304,327	$	934,033	$	20,241	$	954,274
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Residential real estate
Performing	$	49,102	$	144,663	$	323,605	$	316,682	$	224,425	$	414,223	$	1,472,700	$	0	$	1,472,700
Nonperforming	0		580		625		2,341		4,651		11,791		19,988		0		19,988
Total	$	49,102	$	145,243	$	324,230	$	319,023	$	229,076	$	426,014	$	1,492,688	$	0	$	1,492,688
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	0	$	16	$	16	$	0	$	16
Home equity
Performing	$	20,269	$	29,270	$	22,125	$	18,940	$	22,976	$	44,063	$	157,643	$	740,427	$	898,070
Nonperforming	66		15		199		285		119		468		1,152		4,077		5,229
Total	$	20,335	$	29,285	$	22,324	$	19,225	$	23,095	$	44,531	$	158,795	$	744,504	$	903,299
YTD Gross chargeoffs	$	0	$	0	$	14	$	0	$	8	$	80	$	102	$	84	$	186
Installment
Performing	$	8,119	$	9,229	$	6,371	$	15,695	$	7,446	$	4,622	$	51,482	$	63,407	$	114,889
Nonperforming	77		46		54		350		280		38		845		864		1,709
Total	$	8,196	$	9,275	$	6,425	$	16,045	$	7,726	$	4,660	$	52,327	$	64,271	$	116,598
YTD Gross chargeoffs	$	6	$	541	$	533	$	993	$	352	$	9	$	2,434	$	7	$	2,441
Credit cards
Performing	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	64,087	$	64,087
Nonperforming	0		0		0		0		0		0		0		287		287
Total	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	64,374	$	64,374
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	963	$	963
Total Loans	$	1,045,143	$	1,917,016	$	1,847,385	$	1,810,682	$	926,859	$	2,293,669	$	9,840,754	$	1,945,442	$	11,786,196
Total YTD Gross Chargeoffs	$	6	$	1,760	$	9,821	$	4,999	$	507	$	544	$	17,637	$	1,203	$	18,840

The following table sets forth the Company's loan portfolio at December 31, 2024 by risk attribute and origination date:


(Dollars in thousands)	2024		2023		2022		2021		2020		Prior		Term Total		Revolving		Total
Commercial & industrial
Pass	$	819,600	$	710,857	$	592,046	$	298,770	$	162,136	$	241,857	$	2,825,266	$	890,880	$	3,716,146
Special mention	5,594		1,964		1,971		620		2,859		71		13,079		16,211		29,290
Substandard	4,873		3,433		22,508		8,533		347		4,309		44,003		26,419		70,422
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	830,067	$	716,254	$	616,525	$	307,923	$	165,342	$	246,237	$	2,882,348	$	933,510	$	3,815,858
YTD Gross chargeoffs	$	318	$	1,264	$	5,293	$	4,106	$	147	$	3,295	$	14,423	$	225	$	14,648
Lease financing
Pass	$	228,132	$	253,776	$	70,608	$	11,480	$	5,309	$	1,137	$	570,442	$	0	$	570,442
Special mention	0		644		10,171		550		0		0		11,365		0		11,365
Substandard	292		10,225		4,893		129		8		691		16,238		0		16,238
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	228,424	$	264,645	$	85,672	$	12,159	$	5,317	$	1,828	$	598,045	$	0	$	598,045
YTD Gross chargeoffs	$	0	$	1,008	$	451	$	66	$	0	$	1,867	$	3,392	$	0	$	3,392
Construction real estate
Pass	$	139,377	$	213,300	$	322,493	$	40,740	$	1,590	$	17,352	$	734,852	$	0	$	734,852
Special mention	3,525		0		12,737		0		17,832		0		34,094		0		34,094
Substandard	0		0		0		10,500		0		0		10,500		0		10,500
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	142,902	$	213,300	$	335,230	$	51,240	$	19,422	$	17,352	$	779,446	$	0	$	779,446
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Commercial real estate - investor
Pass	$	515,950	$	376,740	$	497,047	$	340,115	$	231,922	$	949,772	$	2,911,546	$	36,716	$	2,948,262
Special mention	13,738		30,454		18,423		4,282		106		27,144		94,147		0		94,147
Substandard	0		0		10,600		0		4,950		35,425		50,975		0		50,975
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	529,688	$	407,194	$	526,070	$	344,397	$	236,978	$	1,012,341	$	3,056,668	$	36,716	$	3,093,384
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	788	$	9,837	$	10,625	$	0	$	10,625
Commercial real estate - owner
Pass	$	202,580	$	126,550	$	161,401	$	94,052	$	128,068	$	215,902	$	928,553	$	17,268	$	945,821
Special mention	1,839		134		213		2,210		504		1,173		6,073		0		6,073
Substandard	0		0		858		3,159		1,249		11,200		16,466		0		16,466
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	204,419	$	126,684	$	162,472	$	99,421	$	129,821	$	228,275	$	951,092	$	17,268	$	968,360
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	0	$	8	$	8	$	0	$	8
Residential real estate
Performing	$	129,008	$	321,232	$	324,180	$	233,355	$	169,901	$	264,312	$	1,441,988	$	0	$	1,441,988
Nonperforming	198		541		1,323		4,412		4,300		9,522		20,296		0		20,296
Total	$	129,206	$	321,773	$	325,503	$	237,767	$	174,201	$	273,834	$	1,462,284	$	0	$	1,462,284
YTD Gross chargeoffs	$	0	$	0	$	25	$	16	$	0	$	102	$	143	$	0	$	143
Home equity
Performing	$	30,799	$	23,969	$	20,280	$	24,878	$	28,882	$	21,160	$	149,968	$	692,993	$	842,961
Nonperforming	61		328		124		144		7		354		1,018		5,060		6,078
Total	$	30,860	$	24,297	$	20,404	$	25,022	$	28,889	$	21,514	$	150,986	$	698,053	$	849,039
YTD Gross chargeoffs	$	37	$	37	$	0	$	186	$	5	$	182	$	447	$	0	$	447
Installment
Performing	$	12,356	$	9,997	$	22,244	$	11,500	$	2,004	$	3,759	$	61,860	$	69,153	$	131,013


(Dollars in thousands)	2024		2023		2022		2021		2020		Prior		Term Total		Revolving		Total
Nonperforming	190		116		607		268		20		16		1,217		821		2,038
Total	$	12,546	$	10,113	$	22,851	$	11,768	$	2,024	$	3,775	$	63,077	$	69,974	$	133,051
YTD Gross chargeoffs	$	382	$	1,120	$	4,066	$	1,779	$	71	$	42	$	7,460	$	0	$	7,460
Credit cards
Performing	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	61,969	$	61,969
Nonperforming	0		0		0		0		0		0		0		342		342
Total	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	62,311	$	62,311
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	2,586	$	2,586
Total Loans	$	2,108,112	$	2,084,260	$	2,094,727	$	1,089,697	$	761,994	$	1,805,156	$	9,943,946	$	1,817,832	$	11,761,778
Total YTD Gross Chargeoffs	$	737	$	3,429	$	9,835	$	6,153	$	1,011	$	15,333	$	36,498	$	2,811	$	39,309

Loan Delinquency, including Nonaccrual Loans

Loan delinquency, including loans classified as nonaccrual, was as follows:


	As of June 30, 2025
(Dollars in thousands)	30 – 59 days past due		60 – 89 days past due		> 89 days past due		Total past due		Current		Total		> 89 days past due and still accruing
Loans
Commercial & industrial	$	2,089	$	1,825	$	1,731	$	5,645	$	3,922,126	$	3,927,771	$	0
Lease financing	452		772		4,758		5,982		581,194		587,176		427
Construction real estate	0		0		1,365		1,365		731,412		732,777		0
Commercial real estate-investor	3,892		0		13,871		17,763		2,989,476		3,007,239		0
Commercial real estate-owner	1,746		306		6,646		8,698		945,576		954,274		0
Residential real estate	3,809		1,188		4,403		9,400		1,483,288		1,492,688		0
Home equity	1,741		525		1,682		3,948		899,351		903,299		0
Installment	694		401		474		1,569		115,029		116,598		0
Credit card	377		202		288		867		63,507		64,374		287
Total	$	14,800	$	5,219	$	35,218	$	55,237	$	11,730,959	$	11,786,196	$	714


	As of December 31, 2024
(Dollars in thousands)	30 – 59 days past due		60 – 89 days past due		> 89 days past due		Total past due		Current		Total		> 89 days past due and still accruing
Loans
Commercial & industrial	$	4,521	$	1,598	$	2,470	$	8,589	$	3,807,269	$	3,815,858	$	0
Lease financing	3,096		3,085		3,386		9,567		588,478		598,045		19
Construction real estate	0		10,500		0		10,500		768,946		779,446		0
Commercial real estate-investor	0		0		17,360		17,360		3,076,024		3,093,384		0
Commercial real estate-owner	856		0		6,144		7,000		961,360		968,360		0
Residential real estate	6,217		154		5,968		12,339		1,449,945		1,462,284		0
Home equity	1,902		1,102		1,428		4,432		844,607		849,039		0
Installment	914		569		402		1,885		131,166		133,051		0
Credit card	450		196		342		988		61,323		62,311		342
Total	$	17,956	$	17,204	$	37,500	$	72,660	$	11,689,118	$	11,761,778	$	361

Schedule of Amortized Cost Basis and Financial Effect of Loan Modifications to Borrowers Experiencing Financial Difficulty

The following tables provide the amortized cost basis of FDMs that were granted modifications during the respective periods:


	Three months ended June 30, 2025
(Dollars in thousands)	Principal forgiveness		Payment delay		Term extension		Interest rate reduction		Combination: Term extension and interest rate reduction		Total		Percent of total class of loans
Commercial & industrial	$	0	$	1,700	$	0	$	0	$	0	$	1,700	0.04	%




Residential real estate	0		1,513		233		0		0		1,746		0.12	%
Home equity	0		786		0		0		0		786		0.09	%

Total	$	0	$	3,999	$	233	$	0	$	0	$	4,232	0.04	%


	Three months ended June 30, 2024
(Dollars in thousands)	Principal forgiveness		Payment delay		Term extension		Interest rate reduction		Combination: Term extension and interest rate reduction		Total		Percent of total class of loans
Commercial & industrial	$	0	$	5,697	$	10,353	$	0	$	0	$	16,050	0.42	%




Residential real estate	0		488		0		0		0		488		0.04	%
Home equity	0		200		0		0		0		200		0.02	%

Total	$	0	$	6,385	$	10,353	$	0	$	0	$	16,738	0.15	%



	Six months ended June 30, 2025
(Dollars in thousands)	Principal forgiveness		Payment delay		Term extension		Interest rate reduction		Combination: Term extension and interest rate reduction		Total		Percent of total class of loans
Commercial & industrial	$	0	$	1,700	$	219	$	0	$	0	$	1,919	0.05	%


Commercial real estate-investor	0		2,274		0		0		0		2,274		0.08	%

Residential real estate	0		2,161		233		0		0		2,394		0.16	%
Home equity	0		852		0		0		0		852		0.09	%

Total	$	0	$	6,987	$	452	$	0	$	0	$	7,439	0.06	%


	Six months ended June 30, 2024
(Dollars in thousands)	Principal forgiveness		Payment delay		Term extension		Interest rate reduction		Combination: Term extension and interest rate reduction		Total		Percent of total class of loans
Commercial & industrial	$	0	$	5,697	$	18,242	$	0	$	0	$	23,939	0.63	%




Residential real estate	0		1,042		0		0		0		1,042		0.08	%
Home equity	0		240		0		0		0		240		0.03	%

Total	$	0	$	6,979	$	18,242	$	0	$	0	$	25,221	0.22	%

The following table provides the financial effect of FDMs granted during the respective periods:


	Three months ended June 30, 2025
(Dollars in thousands)	Principal forgiveness		Weighted average interest rate reduction		Weighted average term extension
Commercial & industrial	$	0	0.00	%	0.0 years




Residential real estate	0		0.00	%	3.5 years


Total	$	0	0.00	%	3.5 years

	Three months ended June 30, 2024
(Dollars in thousands)	Principal forgiveness		Weighted average interest rate reduction		Weighted average term extension
Commercial & industrial	$	0	0.00	%	0.6 years







Total	$	0	0.00	%	0.6 years


	Six months ended June 30, 2025
(Dollars in thousands)	Principal forgiveness		Weighted average interest rate reduction		Weighted average term extension
Commercial & industrial	$	0	0.00	%	0.5 years




Residential real estate	0		0.00	%	3.5 years


Total	$	0	0.00	%	2.0 years

	Six months ended June 30, 2024
(Dollars in thousands)	Principal forgiveness		Weighted average interest rate reduction		Weighted average term extension
Commercial & industrial	$	0	0.00	%	0.4 years







Total	$	0	0.00	%	0.4 years

Financing Receivable, Modified, Past Due

The Company closely monitors the performance of loans that are modified for borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table provides the performance of loans that have been modified during the twelve months preceding June 30, 2025 and 2024.


	Twelve months ended June 30, 2025
(Dollars in thousands)	Current		30 – 59 days past due		60 – 89 days past due		> 89 days past due		Total
Commercial & industrial	$	2,291	$	0	$	0	$	367	$	2,658


Commercial real estate-investor	2,274		0		0		0		2,274

Residential real estate	3,420		77		0		137		3,634
Home equity	945		64		0		98		1,107

Total	$	8,930	$	141	$	0	$	602	$	9,673


	Twelve months ended June 30, 2024
(Dollars in thousands)	Current		30 – 59 days past due		60 – 89 days past due		> 89 days past due		Total
Commercial & industrial	$	24,101	$	0	$	0	$	0	$	24,101




Residential real estate	1,355		84		387		77		1,903
Home equity	255		0		0		0		255

Total	$	25,711	$	84	$	387	$	77	$	26,259

Financing Receivable, Nonaccrual

The following table provides information on nonaccrual loans and leases:


	June 30, 2025						December 31, 2024
(Dollars in thousands)	Nonaccrual loans with a related ACL		Nonaccrual loans with no related ACL		Total nonaccrual		Nonaccrual loans with a related ACL		Nonaccrual loans with no related ACL		Total nonaccrual
Nonaccrual loans
Commercial & industrial	$	18,892	$	5,597	$	24,489	$	1,939	$	4,702	$	6,641
Lease financing	5,132		1,111		6,243		1,982		4,245		6,227
Construction real estate	1,365		0		1,365		0		0		0
Commercial real estate	2,392		21,513		23,905		0		32,303		32,303
Residential real estate	0		16,995		16,995		0		16,700		16,700
Home equity	0		3,226		3,226		0		3,418		3,418
Installment	0		701		701		0		684		684
Total nonaccrual loans	$	27,781	$	49,143	$	76,924	$	3,921	$	62,052	$	65,973

Schedule of Collateral Dependent Loans

The following table presents the amortized cost basis of collateral dependent loans by class of loan.


	June 30, 2025
	Type of Collateral
(Dollar in thousands)	Business assets		Commercial real estate		Equipment		Land		Residential real estate		Other		Total
Class of loan
Commercial & industrial	$	8,854	$	0	$	6,933	$	0	$	0	$	8,702	$	24,489
Lease financing	0		0		6,243		0		0		0		6,243
Construction real estate	0		1,365		0		0		0		0		1,365
Commercial real estate-investor	0		13,970		0		0		49		0		14,019
Commercial real estate-owner	0		7,992		1,894		0		0		0		9,886
Residential real estate	0		0		0		0		16,995		0		16,995
Home equity	0		0		0		0		3,226		0		3,226
Installment	0		0		0		0		0		701		701
Total	$	8,854	$	23,327	$	15,070	$	0	$	20,270	$	9,403	$	76,924


	December 31, 2024
	Type of Collateral
(Dollar in thousands)	Business assets		Commercial real estate		Equipment		Land		Residential real estate		Other		Total
Class of loan
Commercial & industrial	$	2,527	$	0	$	1,434	$	0	$	0	$	2,680	$	6,641
Lease financing	0		0		6,227		0		0		0		6,227
Commercial real estate-investor	0		26,132		0		0		27		0		26,159
Commercial real estate-owner	0		4,250		1,894		0		0		0		6,144
Residential real estate	0		0		0		0		16,700		0		16,700
Home equity	0		0		0		0		3,418		0		3,418
Installment	0		0		0		0		0		684		684
Total	$	2,527	$	30,382	$	9,555	$	0	$	20,145	$	3,364	$	65,973

Components of lease investments

The components of the Company's net investments in direct financing and sales-type leases, which are included in Lease financing on the Consolidated Balance Sheets are as follows:


(Dollar in thousands)	June 30, 2025		December 31, 2024
Direct financing and sales-type leases
Lease receivables	$	576,558	$	581,651
Unguaranteed residual values	10,618		16,394
Total net investment in direct financing and sales-type leases	$	587,176	$	598,045

Sales-type and Direct Financing Leases, Lease Receivable, Maturity

The remaining maturities of lease receivables were as follows:


(Dollars in thousands)	Direct financing and Sales-type
Remainder of 2025	$	106,005
2026	190,446
2027	161,613
2028	99,429
2029	58,062
Thereafter	38,605
Total lease payments	654,160
Less: unearned income	(77,602)
Net lease receivables	$	576,558

Changes in Other Real Estate Owned

Changes in OREO were as follows:


	Three months ended				Six months ended
	June 30,				June 30,
(Dollars in thousands)	2025		2024		2025		2024
Balance at beginning of period	$	213	$	161	$	64	$	106
Additions
Commercial real estate	0		0		0		0
Residential real estate	0		0		149		55
Total additions	0		0		149		55
Disposals
Commercial real estate	0		0		0		0
Residential real estate	0		(106)		0		(106)
Total disposals	0		(106)		0		(106)
Valuation adjustment
Commercial real estate	0		0		0		0
Residential real estate	(9)		(25)		(9)		(25)
Total valuation adjustment	(9)		(25)		(9)		(25)
Balance at end of period	$	204	$	30	$	204	$	30