LOANS AND LEASES (Tables)

9 Months Ended

Sep. 30, 2025

Financial Receivable Credit Quality Indicators

The following table sets forth the Company's loan portfolio at September 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	$	705,067	$	610,382	$	547,227	$	425,493	$	190,647	$	296,574	$	2,775,390	$	932,271	$	3,707,661
Special mention	3,723		847		1,747		2,242		15,324		10,788		34,671		24,159		58,830
Substandard	6,783		4,579		11,473		13,610		4,312		2,969		43,726		28,413		72,139
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	715,573	$	615,808	$	560,447	$	441,345	$	210,283	$	310,331	$	2,853,787	$	984,843	$	3,838,630
YTD Gross chargeoffs	$	793	$	979	$	8,329	$	3,551	$	1,040	$	455	$	15,147	$	192	$	15,339
Lease financing
Pass	$	139,425	$	207,362	$	170,506	$	50,928	$	8,678	$	3,740	$	580,639	$	0	$	580,639
Special mention	0		46		0		0		0		0		46		0		46
Substandard	744		394		5,460		8,804		529		118		16,049		0		16,049
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	140,169	$	207,802	$	175,966	$	59,732	$	9,207	$	3,858	$	596,734	$	0	$	596,734
YTD Gross chargeoffs	$	0	$	491	$	1,220	$	601	$	32	$	14	$	2,358	$	0	$	2,358
Construction real estate
Pass	$	115,620	$	174,493	$	118,014	$	153,895	$	12,461	$	7,530	$	582,013	$	0	$	582,013
Special mention	0		0		0		13,856		0		16,299		30,155		0		30,155
Substandard	0		0		0		14,672		0		1,120		15,792		0		15,792
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	115,620	$	174,493	$	118,014	$	182,423	$	12,461	$	24,949	$	627,960	$	0	$	627,960
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	0	$	245	$	245	$	0	$	245
Commercial real estate - investor
Pass	$	341,205	$	406,178	$	425,077	$	448,992	$	301,040	$	1,012,714	$	2,935,206	$	31,081	$	2,966,287
Special mention	103		592		16,950		13,243		0		13,615		44,503		0		44,503
Substandard	550		0		0		10,600		0		30,194		41,344		0		41,344


(Dollars in thousands)	2025		2024		2023		2022		2021		Prior		Term Total		Revolving		Total
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	341,858	$	406,770	$	442,027	$	472,835	$	301,040	$	1,056,523	$	3,021,053	$	31,081	$	3,052,134
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	0	$	3,105	$	3,105	$	0	$	3,105
Commercial real estate - owner
Pass	$	146,543	$	189,777	$	132,193	$	140,089	$	81,133	$	252,317	$	942,052	$	22,076	$	964,128
Special mention	2,214		2,881		0		514		1,928		8,943		16,480		0		16,480
Substandard	250		2,618		0		983		2,396		9,381		15,628		0		15,628
Doubtful	0		0		0		0		0		0		0		0		0
Total	$	149,007	$	195,276	$	132,193	$	141,586	$	85,457	$	270,641	$	974,160	$	22,076	$	996,236
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Residential real estate
Performing	$	76,150	$	150,186	$	316,486	$	309,147	$	221,731	$	401,156	$	1,474,856	$	0	$	1,474,856
Nonperforming	0		571		1,172		2,073		4,535		11,257		19,608		0		19,608
Total	$	76,150	$	150,757	$	317,658	$	311,220	$	226,266	$	412,413	$	1,494,464	$	0	$	1,494,464
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	0	$	16	$	16	$	0	$	16
Home equity
Performing	$	29,603	$	28,108	$	20,668	$	17,879	$	22,303	$	41,525	$	160,086	$	769,840	$	929,926
Nonperforming	35		110		165		241		239		395		1,185		4,864		6,049
Total	$	29,638	$	28,218	$	20,833	$	18,120	$	22,542	$	41,920	$	161,271	$	774,704	$	935,975
YTD Gross chargeoffs	$	0	$	0	$	19	$	0	$	8	$	158	$	185	$	93	$	278
Installment
Performing	$	11,087	$	8,242	$	4,856	$	12,822	$	5,819	$	4,124	$	46,950	$	60,742	$	107,692
Nonperforming	207		81		25		460		221		152		1,146		926		2,072
Total	$	11,294	$	8,323	$	4,881	$	13,282	$	6,040	$	4,276	$	48,096	$	61,668	$	109,764
YTD Gross chargeoffs	$	51	$	832	$	929	$	1,308	$	494	$	11	$	3,625	$	10	$	3,635
Credit cards
Performing	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	62,062	$	62,062
Nonperforming	0		0		0		0		0		0		0		592		592
Total	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	62,654	$	62,654
YTD Gross chargeoffs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	1,540	$	1,540
Total Loans	$	1,579,309	$	1,787,447	$	1,772,019	$	1,640,543	$	873,296	$	2,124,911	$	9,777,525	$	1,937,026	$	11,714,551
Total YTD Gross Chargeoffs	$	844	$	2,302	$	10,497	$	5,460	$	1,574	$	4,004	$	24,681	$	1,835	$	26,516

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 September 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	$	6,892	$	989	$	1,655	$	9,536	$	3,829,094	$	3,838,630	$	0
Lease financing	4,299		595		4,754		9,648		587,086		596,734		0
Construction real estate	0		0		1,120		1,120		626,840		627,960		0
Commercial real estate-investor	0		10,600		12,521		23,121		3,029,013		3,052,134		0
Commercial real estate-owner	1,453		379		7,477		9,309		986,927		996,236		0
Residential real estate	5,151		0		5,575		10,726		1,483,738		1,494,464		0
Home equity	2,408		518		1,941		4,867		931,108		935,975		0
Installment	1,019		471		499		1,989		107,775		109,764		0
Credit card	418		223		595		1,236		61,418		62,654		592
Total	$	21,640	$	13,775	$	36,137	$	71,552	$	11,642,999	$	11,714,551	$	592


	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 September 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	$	9,974	$	0	$	0	$	0	$	9,974	0.26	%




Residential real estate	0		827		279		0		0		1,106		0.07	%
Home equity	0		17		0		0		0		17		0.00	%

Total	$	0	$	10,818	$	279	$	0	$	0	$	11,097	0.09	%


	Three months ended September 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	$	0	$	0	$	0	$	0	$	0	0.00	%

Construction real estate	0		0		10,500		0		0		10,500		1.31	%


Residential real estate	0		921		4		0		0		925		0.07	%
Home equity	0		48		0		0		0		48		0.01	%

Total	$	0	$	969	$	10,504	$	0	$	0	$	11,473	0.10	%



	Nine months ended September 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	$	11,674	$	190	$	0	$	0	$	11,864	0.31	%


Commercial real estate-investor	0		474		0		0		0		474		0.02	%

Residential real estate	0		2,971		509		0		0		3,480		0.23	%
Home equity	0		861		0		0		0		861		0.09	%

Total	$	0	$	15,980	$	699	$	0	$	0	$	16,679	0.14	%


	Nine months ended September 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	$	383	$	15,860	$	0	$	0	$	16,243	0.44	%

Construction real estate	0		0		10,500		0		0		10,500		1.31	%


Residential real estate	0		1,955		4		0		0		1,959		0.14	%
Home equity	0		285		0		0		0		285		0.03	%

Total	$	0	$	2,623	$	26,364	$	0	$	0	$	28,987	0.25	%

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


	Three months ended September 30, 2025
(Dollars in thousands)	Principal forgiveness		Weighted average interest rate reduction		Weighted average term extension





Residential real estate	$	0	0.00	%	10.6 years


Total	$	0	0.00	%	10.6 years

	Three months ended September 30, 2024
(Dollars in thousands)	Principal forgiveness		Weighted average interest rate reduction		Weighted average term extension


Construction real estate	$	0	0.00	%	0.3 years


Residential real estate	0		0.00	%	3.0 years


Total	$	0	0.00	%	0.3 years


	Nine months ended September 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	%	7.4 years


Total	$	0	0.00	%	5.5 years

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

Construction real estate	0		0.00	%	0.3 years


Residential real estate	0		0.00	%	3.0 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 September 30, 2025 and 2024.


	Twelve months ended September 30, 2025
(Dollars in thousands)	Current		30 – 59 days past due		60 – 89 days past due		> 89 days past due		Total
Commercial & industrial	$	12,227	$	0	$	0	$	367	$	12,594


Commercial real estate-investor	474		0		0		0		474

Residential real estate	3,037		97		337		350		3,821
Home equity	955		17		0		98		1,070

Total	$	16,693	$	114	$	337	$	815	$	17,959


	Twelve months ended September 30, 2024
(Dollars in thousands)	Current		30 – 59 days past due		60 – 89 days past due		> 89 days past due		Total
Commercial & industrial	$	16,184	$	0	$	0	$	0	$	16,184

Construction real estate	10,500		0		0		0		10,500


Residential real estate	1,949		86		75		125		2,235
Home equity	299		0		0		0		299

Total	$	28,932	$	86	$	75	$	125	$	29,218

Financing Receivable, Nonaccrual

The following table provides information on nonaccrual loans and leases:


	September 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	$	16,977	$	6,855	$	23,832	$	1,939	$	4,702	$	6,641
Lease financing	4,542		1,343		5,885		1,982		4,245		6,227
Construction real estate	0		1,120		1,120		0		0		0
Commercial real estate	2,393		22,050		24,443		0		32,303		32,303
Residential real estate	0		16,452		16,452		0		16,700		16,700
Home equity	0		3,567		3,567		0		3,418		3,418
Installment	0		652		652		0		684		684
Total nonaccrual loans	$	23,912	$	52,039	$	75,951	$	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.


	September 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	$	7,973	$	0	$	8,275	$	0	$	0	$	7,584	$	23,832
Lease financing	0		0		5,885		0		0		0		5,885
Construction real estate	0		1,120		0		0		0		0		1,120
Commercial real estate-investor	0		13,168		0		0		47		0		13,215
Commercial real estate-owner	0		9,334		1,894		0		0		0		11,228
Residential real estate	0		0		0		0		16,452		0		16,452
Home equity	0		0		0		0		3,567		0		3,567
Installment	0		0		0		0		0		652		652
Total	$	7,973	$	23,622	$	16,054	$	0	$	20,066	$	8,236	$	75,951


	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)	September 30, 2025		December 31, 2024
Direct financing and sales-type leases
Lease receivables	$	585,978	$	581,651
Unguaranteed residual values	10,756		16,394
Total net investment in direct financing and sales-type leases	$	596,734	$	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	$	58,584
2026	201,815
2027	173,578
2028	112,015
2029	69,106
Thereafter	48,770
Total lease payments	663,868
Less: unearned income	(77,890)
Net lease receivables	$	585,978

Changes in Other Real Estate Owned

Changes in OREO were as follows:


	Three months ended				Nine months ended
	September 30,				September 30,
(Dollars in thousands)	2025		2024		2025		2024
Balance at beginning of period	$	204	$	30	$	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	(55)		0		(55)		(106)
Total disposals	(55)		0		(55)		(106)
Valuation adjustment
Commercial real estate	0		0		0		0
Residential real estate	(38)		0		(47)		(25)
Total valuation adjustment	(38)		0		(47)		(25)
Balance at end of period	$	111	$	30	$	111	$	30