v3.26.1
Loans and Allowance for Credit Losses
 3 Months Ended
Mar. 31, 2026
Loans and Leases Receivable Disclosure [Abstract]  
Loans, Notes, Trade and Other Receivables Disclosure Loans and Leases and Allowance for Credit Losses
Loans and leases are presented in the Consolidated Statements of Financial Condition net of deferred fees and costs, and discounts related to purchased loans. Net deferred fees were $22.7 million and $21.2 million as of March 31, 2026 and December 31, 2025, respectively, and discounts on purchased loans from acquisitions were $19.1 million and $20.2 million as of March 31, 2026 and December 31, 2025, respectively. The following table provides outstanding balances related to each of our loan types:
 
March 31, 2026December 31, 2025
 (dollars in thousands)
Commercial, financial, agricultural and other$2,061,894 $2,044,989 
Time and demand1,196,447 1,226,054 
Commercial credit cards11,919 11,408 
Equipment finance746,723 693,265 
Time and demand other106,805 114,262 
Real estate construction436,237 462,786 
Construction other404,394 415,536 
Construction residential31,843 47,250 
Residential real estate2,351,601 2,360,285 
Residential first lien1,613,180 1,631,019 
Residential junior lien/home equity738,421 729,266 
Commercial real estate3,148,767 3,182,109 
Multifamily606,179 594,790 
Non-owner occupied1,776,985 1,834,016 
Owner occupied765,603 753,303 
Loans to individuals1,435,326 1,457,870 
Automobile and recreational vehicles1,367,360 1,387,195 
Consumer credit cards8,886 9,496 
Consumer other59,080 61,179 
Total loans and leases$9,433,825 $9,508,039 
First Commonwealth’s loan portfolio includes five primary loan categories. When calculating the allowance for credit losses these categories are classified into fourteen portfolio segments. The composition of loans by portfolio segment includes:
Commercial, financial, agricultural and other
Time & Demand - Consists primarily of commercial and industrial loans. This category consists of loans that are typically cash flow dependent and therefore have different risk and loss characteristics than other commercial loans. Loans in this category include revolving and term structures with fixed and variable interest rates. The primary macroeconomic drivers for estimating credit losses for this category include forecasts of business bankruptcies and economic conditions measured by GDP.
Commercial Credit Cards - Consists of unsecured credit cards for commercial customers. These commercial credit cards have separate characteristics outside of normal commercial non-real estate loans, as they tend to have shorter overall duration. The primary macroeconomic drivers for estimating credit losses for this category include forecasts of business bankruptcies and economic conditions measured by GDP.
Equipment Finance - Consists of loans and leases to finance the purchase of equipment for commercial customers. The risk and loss characteristics are unique for this group due to the type of collateral. The primary macroeconomic drivers for estimating credit losses for this category include forecasts of business bankruptcies and economic conditions measured by GDP.
Time & Demand Other - Consists primarily of loans to state and political subdivisions and other commercial loans that have different characteristics than loans in the Time and Demand category. The primary macroeconomic drivers for estimating credit losses for this category include forecasts of household obligations ratio and economic conditions measured by GDP.
Real estate construction
Construction Other - Consists of construction loans to commercial builders and developers and are secured by the properties under development.
Construction Residential - Consists of loans to finance the construction of residential properties during the construction period. Borrowers are typically individuals who will occupy the completed single family property.
The risk and loss characteristics of these two construction categories are different than other real estate secured categories due to the collateral being at various stages of completion. The nature of the project and type of borrower of the two construction categories provides for unique risk and loss characteristics for each category. The primary macroeconomic drivers for estimating credit losses for construction loans include forecasts of national unemployment and measures of completed construction projects.
Residential real estate
Residential first lien - Consists of loans with collateral of 1-4 family residencies with a senior lien position. The risk and loss characteristics are unique for this group because the collateral for these loans are the borrower’s primary residence. The primary macroeconomic drivers for estimating credit losses for this category include forecasts of national unemployment and residential property values.
Residential Junior Lien/Home Equity - Consists of loans with collateral of 1-4 family residencies with an open end line of credit or junior lien position. The junior lien position for the majority of these loans provides a higher risk of loss than other residential real estate loans. The primary macroeconomic drivers for estimating credit losses for this category include forecasts of national unemployment and residential property values.
Commercial real estate
Multifamily - Consists of loans secured by commercial multifamily properties. Real estate related to rentals to consumers provide unique risk and loss characteristics. The primary macroeconomic drivers for estimating credit losses for this category include forecasts of completed multifamily construction projects and national unemployment.
Non-owner Occupied - Consists of loans secured by non-owner occupied commercial real estate and provides different loss characteristics than other real estate categories. The primary macroeconomic drivers for estimating credit losses for this category include forecasts of national unemployment and changes in the price of commercial real estate.
Owner Occupied - Consists of loans secured by commercial real estate owner occupied properties. The risk and loss characteristics of this category were considered different than other real estate categories because it is owner occupied and would impact the ability to conduct business. The primary macroeconomic drivers for estimating credit losses for this category include forecasts of national unemployment and economic conditions as measured by GDP.
Loans to individuals
Automobile and Recreational Vehicles - Consists of both direct and indirect loans with automobiles and recreational vehicles held as collateral. The primary macroeconomic drivers for estimating credit losses for this category include forecasts of automobile retention value and business bankruptcies, which are better correlated with defaults in this category at this point in the economic cycle.
Consumer Credit Cards – Consists of unsecured consumer credit cards. The primary macroeconomic drivers for estimating credit losses for this category include forecasts of consumer sentiment and median family income.
Other Consumer - Consists of lines of credit, student loans and other consumer loans, not secured by real estate or autos. The primary macroeconomic drivers for estimating credit losses for this category include forecasts of consumer confidence and retail sales.
Calculation of the Allowance for Credit Losses
The allowance for credit losses is calculated by pooling loans with similar credit risk characteristics and applying a discounted cash flow methodology after incorporating probability of default and loss given default estimates. Probability of default represents an estimate of the likelihood of default, and loss given default measures the expected loss upon default. Inputs impacting the expected losses include a forecast of macroeconomic factors, using a weighted forecast from a nationally recognized firm. Our model incorporates a one-year forecast of macroeconomic factors, after which the factors revert back to
the historical mean over a one-year period. The most significant macroeconomic factor used in estimating credit losses is the national unemployment rate. The forecasted value for national unemployment at the beginning of the forecast period was 4.51%, and during the one-year forecast period it was projected to average 5.12%, with a peak of 5.37%.
Credit Quality Information
As part of the on-going monitoring of credit quality within the loan portfolio, the following credit worthiness categories are used in grading our loans:
Pass  Acceptable levels of risk exist in the relationship. Includes all loans not classified as OAEM, substandard or doubtful.
Other Assets Especially Mentioned (OAEM)Potential weaknesses that deserve management’s close attention. The potential weaknesses may result in deterioration of the repayment prospects or weaken the Company’s credit position at some future date. The credit risk may be relatively minor, yet constitute an undesirable risk in light of the circumstances surrounding the specific credit. No loss of principal or interest is expected.
SubstandardWell-defined weakness or a weakness that jeopardizes the repayment of the debt. A loan may be classified as substandard as a result of deterioration of the borrower’s financial condition and repayment capacity. Loans for which repayment plans have not been met or collateral equity margins do not protect the Company may also be classified as substandard.
DoubtfulLoans with the characteristics of substandard loans with the added characteristic that collection or liquidation in full, on the basis of presently existing facts and conditions, is highly improbable.
The Company’s internal creditworthiness grading system provides a measurement of credit risk based primarily on an evaluation of the borrower’s cash flow and collateral. Category ratings are reviewed each quarter, at which time management analyzes the results, as well as other external statistics and factors related to loan performance.
The following tables represent our credit risk profile by creditworthiness category. In the table for the year ended December 31, 2025, the balance of the doubtful category had been fully provided for in the allowance for credit losses and was subsequently charged-off in the first quarter of 2026
 March 31, 2026
Non-Pass
PassOAEMSubstandardDoubtfulLossTotal Non-PassTotal
(dollars in thousands)
Commercial, financial, agricultural and other$1,943,697 $60,393 $57,804 $— $— $118,197 $2,061,894 
Time and demand1,087,361 56,921 52,165 — — 109,086 1,196,447 
Commercial credit cards11,919 — — — — — 11,919 
Equipment finance737,612 3,472 5,639 — — 9,111 746,723 
Time and demand other106,805 — — — — — 106,805 
Real estate construction435,665 445 127 — — 572 436,237 
Construction other403,822 445 127 — — 572 404,394 
Construction residential31,843 — — — — — 31,843 
Residential real estate2,333,016 5,197 13,388 — — 18,585 2,351,601 
Residential first lien1,599,297 5,197 8,686 — — 13,883 1,613,180 
Residential junior lien/home equity733,719 — 4,702 — — 4,702 738,421 
Commercial real estate3,001,503 81,696 65,568 — — 147,264 3,148,767 
Multifamily586,725 7,369 12,085 — — 19,454 606,179 
Non-owner occupied1,697,902 52,196 26,887 — — 79,083 1,776,985 
Owner occupied716,876 22,131 26,596 — — 48,727 765,603 
Loans to individuals1,435,316 — 10 — — 10 1,435,326 
Automobile and recreational vehicles1,367,352 — 8 — — 8 1,367,360 
Consumer credit cards8,886 — — — — — 8,886 
Consumer other59,078 — 2 — — 2 59,080 
Total loans and leases$9,149,197 $147,731 $136,897 $— $— $284,628 $9,433,825 
 
 December 31, 2025
Non-Pass
PassOAEMSubstandardDoubtfulLossTotal Non-PassTotal
(dollars in thousands)
Commercial, financial, agricultural and other$1,924,977 $53,739 $65,381 $892 $— $120,012 $2,044,989 
Time and demand1,112,673 49,765 62,724 892 — 113,381 1,226,054 
Commercial credit cards11,408 — — — — — 11,408 
Equipment finance686,636 3,972 2,657 — — 6,629 693,265 
Time and demand other114,260 2 — — — 2 114,262 
Real estate construction460,716 463 1,607 — — 2,070 462,786 
Construction other413,466 463 1,607 — — 2,070 415,536 
Construction residential47,250 — — — — — 47,250 
Residential real estate2,342,701 4,402 13,182 — — 17,584 2,360,285 
Residential first lien1,618,090 4,402 8,527 — — 12,929 1,631,019 
Residential junior lien/home equity724,611 — 4,655 — — 4,655 729,266 
Commercial real estate3,054,645 69,182 58,282 — — 127,464 3,182,109 
Multifamily575,330 7,718 11,742 — — 19,460 594,790 
Non-owner occupied1,777,941 40,928 15,147 — — 56,075 1,834,016 
Owner occupied701,374 20,536 31,393 — — 51,929 753,303 
Loans to individuals1,457,836 — 34 — — 34 1,457,870 
Automobile and recreational vehicles1,387,163 — 32 — — 32 1,387,195 
Consumer credit cards9,496 — — — — — 9,496 
Consumer other61,177 — 2 — — 2 61,179 
Total loans and leases$9,240,875 $127,786 $138,486 $892 $— $267,164 $9,508,039 
The following table summarizes the loan risk rating category by loan type including term loans on an amortized cost basis by origination year:
March 31, 2026
Term LoansRevolving Loans
20262025202420232022PriorTotal
(dollars in thousands)
Time and demand$33,714 $130,362 $136,951 $89,409 $80,072 $134,041 $591,898 $1,196,447 
Pass33,714 124,053 120,407 83,647 72,826 114,254 538,460 1,087,361 
OAEM— 1,602 12,343 3,046 2,591 9,944 27,395 56,921 
Substandard— 4,707 4,201 2,716 4,655 9,843 26,043 52,165 
Gross charge-offs— — (300)— (477)(70)(1,070)(1,917)
Gross recoveries— — — — 26 92 12 130 
Commercial credit cards— — — — — — 11,919 11,919 
Pass— — — — — — 11,919 11,919 
Gross charge-offs— — — — — — (141)(141)
Gross recoveries— — — — — — 1 1 
Equipment finance101,256 368,817 177,471 78,861 20,318 — — 746,723 
Pass101,256 365,530 174,674 76,857 19,295 — — 737,612 
OAEM— 1,635 808 616 413 — — 3,472 
Substandard— 1,652 1,989 1,388 610 — — 5,639 
Gross charge-offs— (135)(714)(339)(189)— — (1,377)
Gross recoveries— — 125 8 82 — — 215 
March 31, 2026
Term LoansRevolving Loans
20262025202420232022PriorTotal
(dollars in thousands)
Time and demand other2,969 8,481 10,685 14,234 4,010 63,479 2,947 106,805 
Pass2,969 8,481 10,685 14,234 4,010 63,479 2,947 106,805 
Gross charge-offs— — — — — — (579)(579)
Gross recoveries— — — — — — 60 60 
Construction other6,797 162,792 91,584 103,381 590 36,816 2,434 404,394 
Pass6,797 162,792 91,584 103,108 418 36,689 2,434 403,822 
OAEM— — — 273 172 — — 445 
Substandard— — — — — 127 — 127 
Gross charge-offs— — — — — (326)— (326)
Gross recoveries— — — — — — — — 
Construction residential1,347 17,796 4,682 3,074 2,501 953 1,490 31,843 
Pass1,347 17,796 4,682 3,074 2,501 953 1,490 31,843 
Gross charge-offs— — — — — — — — 
Gross recoveries— — — — — — — — 
Residential first lien17,392 88,254 54,880 134,010 336,381 979,764 2,499 1,613,180 
Pass17,367 88,245 54,057 131,222 331,581 974,388 2,437 1,599,297 
OAEM— — 590 — 3,475 1,070 62 5,197 
Substandard25 9 233 2,788 1,325 4,306 — 8,686 
Gross charge-offs— — — (17)(31)(58)— (106)
Gross recoveries— — — — — 16 — 16 
Residential junior lien/home equity10,811 50,208 16,621 42,346 44,752 34,629 539,054 738,421 
Pass10,811 50,208 16,621 42,338 44,664 34,437 534,640 733,719 
Substandard— — — 8 88 192 4,414 4,702 
Gross charge-offs— — — — — — (39)(39)
Gross recoveries— — — — — 4 6 10 
Multifamily15,120 32,796 34,557 123,753 168,149 230,165 1,639 606,179 
Pass15,120 32,796 34,557 123,753 154,522 224,338 1,639 586,725 
OAEM— — — — 1,552 5,817 — 7,369 
Substandard— — — — 12,075 10 — 12,085 
Gross charge-offs— — — — — — — — 
Gross recoveries— — — — — — — — 
Non-owner occupied16,880 181,473 105,578 210,838 374,387 874,866 12,963 1,776,985 
Pass16,880 181,473 105,379 210,838 354,964 815,471 12,897 1,697,902 
OAEM— — 199 — 18,294 33,703 — 52,196 
Substandard— — — — 1,129 25,692 66 26,887 
Gross charge-offs— — — — — (2,016)— (2,016)
Gross recoveries— — — — — 6 — 6 
Owner occupied29,179 122,818 78,693 100,510 128,596 293,172 12,635 765,603 
Pass29,179 122,529 65,769 95,540 120,060 272,705 11,094 716,876 
OAEM— — 5,966 3,339 3,774 7,594 1,458 22,131 
Substandard— 289 6,958 1,631 4,762 12,873 83 26,596 
Gross charge-offs— — — — (35)— (257)(292)
Gross recoveries— — — — — 34 — 34 
Automobile and recreational vehicles112,973 503,760 260,962 195,189 178,885 115,591 — 1,367,360 
Pass112,973 503,760 260,962 195,189 178,885 115,583 — 1,367,352 
Substandard— — — — — 8 — 8 
Gross charge-offs— (344)(671)(488)(424)(218)— (2,145)
Gross recoveries— 88 87 239 148 151 — 713 
March 31, 2026
Term LoansRevolving Loans
20262025202420232022PriorTotal
(dollars in thousands)
Consumer credit cards— — — — — — 8,886 8,886 
Pass— — — — — — 8,886 8,886 
Gross charge-offs— — — — — — (110)(110)
Gross recoveries— — — — — — 21 21 
Consumer other1,659 5,904 4,239 1,984 853 9,583 34,858 59,080 
Pass1,659 5,904 4,239 1,984 853 9,583 34,856 59,078 
Substandard— — — — — — 2 2 
Gross charge-offs— (50)(52)(3)(12)(14)(258)(389)
Gross recoveries— — 2 3 7 21 37 70 
Total loans and leases$350,097 $1,673,461 $976,903 $1,097,589 $1,339,494 $2,773,059 $1,223,222 $9,433,825 
Total charge-offs$— $(529)$(1,737)$(847)$(1,168)$(2,702)$(2,454)$(9,437)
Total recoveries$— $88 $214 $250 $263 $324 $137 $1,276 
December 31, 2025
Term LoansRevolving Loans
20252024202320222021PriorTotal
(dollars in thousands)
Time and demand$144,802 $143,570 $95,587 $90,711 $66,053 $94,425 $590,906 $1,226,054 
Pass138,416 129,314 90,204 82,891 55,709 84,813 531,326 1,112,673 
OAEM1,615 10,115 2,639 2,655 1,888 1,888 28,965 49,765 
Substandard4,771 4,141 2,744 5,165 8,456 7,724 29,723 62,724 
Doubtful— — — — — — 892 892 
Gross charge-offs(305)(283)(400)(2,897)(389)(2,368)(9,540)(16,182)
Gross recoveries— — — 402 26 862 2,933 4,223 
Commercial credit cards— — — — — — 11,408 11,408 
Pass— — — — — — 11,408 11,408 
Gross charge-offs— — — — — — (302)(302)
Gross recoveries— — — — — — 35 35 
Equipment finance385,806 195,713 87,528 24,218 — — — 693,265 
Pass385,724 192,228 85,679 23,005 — — — 686,636 
OAEM82 2,588 740 562 — — — 3,972 
Substandard— 897 1,109 651 — — — 2,657 
Gross charge-offs(89)(673)(418)(1,108)— — — (2,288)
Gross recoveries— 7 165 454 — — — 626 
Time and demand other9,347 10,927 12,347 4,079 15,114 50,358 12,090 114,262 
Pass9,347 10,927 12,347 4,079 15,114 50,358 12,088 114,260 
OAEM— — — — — — 2 2 
Gross charge-offs— — — — — — (1,480)(1,480)
Gross recoveries— — — — — 1 233 234 
Construction other149,758 78,078 115,404 32,501 28,324 8,905 2,566 415,536 
Pass149,758 78,078 115,115 32,327 26,849 8,773 2,566 413,466 
OAEM— — 289 174 — — — 463 
Substandard— — — — 1,475 132 — 1,607 
Gross charge-offs(10)— (359)(355)— — (8)(732)
Gross recoveries— — — — — — — — 
December 31, 2025
Term LoansRevolving Loans
20252024202320222021PriorTotal
(dollars in thousands)
Construction residential18,358 6,101 16,798 3,449 1,055 — 1,489 47,250 
Pass18,358 6,101 16,798 3,449 1,055 — 1,489 47,250 
Gross charge-offs— — — — (562)— — (562)
Gross recoveries— — — — — — — — 
Residential first lien86,293 55,820 136,773 343,907 438,644 567,149 2,433 1,631,019 
Pass86,284 55,582 134,414 339,023 436,767 563,651 2,369 1,618,090 
OAEM— — — 3,474 169 695 64 4,402 
Substandard9 238 2,359 1,410 1,708 2,803 — 8,527 
Gross charge-offs— (4)(330)(17)(105)(45)— (501)
Gross recoveries— — — — — 66 — 66 
Residential junior lien/home equity51,282 17,507 44,622 47,598 31,875 4,869 531,513 729,266 
Pass51,282 17,507 44,611 47,523 31,875 4,678 527,135 724,611 
Substandard— — 11 75 — 191 4,378 4,655 
Gross charge-offs— — — — — — (244)(244)
Gross recoveries— — — — — 13 155 168 
Multifamily32,759 33,307 70,651 196,678 110,591 148,908 1,896 594,790 
Pass32,759 33,307 70,651 183,418 105,594 148,005 1,596 575,330 
OAEM— — — 1,563 4,997 858 300 7,718 
Substandard— — — 11,697 — 45 — 11,742 
Gross charge-offs— — — (169)(92)(505)— (766)
Gross recoveries— — — — — — — — 
Non-owner occupied194,436 109,688 212,880 384,761 186,461 732,319 13,471 1,834,016 
Pass194,436 109,688 212,880 374,468 179,869 693,195 13,405 1,777,941 
OAEM— — — 9,201 6,592 25,135 — 40,928 
Substandard— — — 1,092 — 13,989 66 15,147 
Gross charge-offs— (2)(93)(1,284)(239)(3,145)(7)(4,770)
Gross recoveries— — — — — 148 — 148 
Owner occupied124,044 79,594 102,865 130,905 108,227 193,605 14,063 753,303 
Pass123,755 66,642 97,396 119,327 104,482 177,382 12,390 701,374 
OAEM— 5,994 3,352 3,080 2,606 4,172 1,332 20,536 
Substandard289 6,958 2,117 8,498 1,139 12,051 341 31,393 
Gross charge-offs(98)(131)(140)(1,175)(63)(42)(3)(1,652)
Gross recoveries— — — — — 69 — 69 
Automobile and recreational vehicles545,133 287,068 217,215 204,073 87,300 46,406 — 1,387,195 
Pass545,133 287,057 217,215 204,061 87,300 46,397 — 1,387,163 
Substandard— 11 — 12 — 9 — 32 
Gross charge-offs(229)(1,401)(2,037)(2,079)(879)(400)— (7,025)
Gross recoveries25 409 643 1,047 477 391 — 2,992 
Consumer credit cards— — — — — — 9,496 9,496 
Pass— — — — — — 9,496 9,496 
Gross charge-offs— — — — — — (346)(346)
Gross recoveries— — — — — — 79 79 
Consumer other6,592 4,881 2,331 1,074 7,711 2,308 36,282 61,179 
Pass6,592 4,881 2,331 1,074 7,711 2,308 36,280 61,177 
Substandard— — — — — — 2 2 
Gross charge-offs(17)(91)(151)(74)(135)(1)(1,047)(1,516)
Gross recoveries6 1 22 14 38 34 236 351 
Total loans and leases$1,748,610 $1,022,254 $1,115,001 $1,463,954 $1,081,355 $1,849,252 $1,227,613 $9,508,039 
December 31, 2025
Term LoansRevolving Loans
20252024202320222021PriorTotal
(dollars in thousands)
Total charge-offs$(748)$(2,585)$(3,928)$(9,158)$(2,464)$(6,506)$(12,977)$(38,366)
Total recoveries$31 $417 $830 $1,917 $541 $1,584 $3,671 $8,991 
Portfolio Risks
The credit quality of our loan portfolio can potentially represent significant risk to our earnings, capital and liquidity. First Commonwealth devotes substantial resources to managing this risk primarily through our credit administration department that develops and administers policies and procedures for underwriting, maintaining, monitoring and collecting loans. Credit administration is independent of lending departments and oversight is provided by the Risk Committee of the First Commonwealth Board of Directors.
Total net charge-offs for the three months ended March 31, 2026 and 2025 were $8.2 million and $3.1 million, respectively.
Age Analysis of Past Due Loans by Segment
The following tables delineate the aging analysis of the recorded investments in past due loans as of March 31, 2026 and December 31, 2025. Also included in these tables are loans that are 90 days or more past due and still accruing because they are well-secured and in the process of collection.

 March 31, 2026
 30 - 59 days past due60 - 89 days past due90 days or greater and still accruingNonaccrualTotal past due and nonaccrualCurrentTotal
 (dollars in thousands)
Commercial, financial, agricultural and other$8,550 $10,830 $100 $45,160 $64,640 $1,997,254 $2,061,894 
Time and demand5,762 9,046 — 43,190 57,998 1,138,449 1,196,447 
Commercial credit cards83 30 — — 113 11,806 11,919 
Equipment finance2,702 1,754 — 1,970 6,426 740,297 746,723 
Time and demand other3 — 100 — 103 106,702 106,805 
Real estate construction4,110 — — — 4,110 432,127 436,237 
Construction other4,110 — — — 4,110 400,284 404,394 
Construction residential— — — — — 31,843 31,843 
Residential real estate5,884 6,908 855 13,231 26,878 2,324,723 2,351,601 
Residential first lien3,491 6,329 354 8,530 18,704 1,594,476 1,613,180 
Residential junior lien/home equity2,393 579 501 4,701 8,174 730,247 738,421 
Commercial real estate3,589 542 1,406 32,764 38,301 3,110,466 3,148,767 
Multifamily— — — 11,709 11,709 594,470 606,179 
Non-owner occupied2,535 42 1,406 9,288 13,271 1,763,714 1,776,985 
Owner occupied1,054 500 — 11,767 13,321 752,282 765,603 
Loans to individuals4,285 1,178 566 9 6,038 1,429,288 1,435,326 
Automobile and recreational vehicles4,051 956 30 7 5,044 1,362,316 1,367,360 
Consumer credit cards42 63 — — 105 8,781 8,886 
Consumer other192 159 536 2 889 58,191 59,080 
Total loans and leases$26,418 $19,458 $2,927 $91,164 $139,967 $9,293,858 $9,433,825 
 
 December 31, 2025
 30 - 59 days past due60 - 89 days past due90 days or greater and still accruingNonaccrualTotal past due and nonaccrual CurrentTotal
 (dollars in thousands)
Commercial, financial, agricultural and other$5,127 $595 $217 $46,618 $52,557 $1,992,432 $2,044,989 
Time and demand2,666 125 107 45,288 48,186 1,177,868 1,226,054 
Commercial credit cards75 32 — — 107 11,301 11,408 
Equipment finance2,382 438 110 1,330 4,260 689,005 693,265 
Time and demand other4 — — — 4 114,258 114,262 
Real estate construction— — — 1,475 1,475 461,311 462,786 
Construction other— — — 1,475 1,475 414,061 415,536 
Construction residential— — — — — 47,250 47,250 
Residential real estate8,197 1,870 581 13,019 23,667 2,336,618 2,360,285 
Residential first lien5,054 1,456 317 8,364 15,191 1,615,828 1,631,019 
Residential junior lien/home equity3,143 414 264 4,655 8,476 720,790 729,266 
Commercial real estate1,975 10,070 — 30,612 42,657 3,139,452 3,182,109 
Multifamily417 — — 10 427 594,363 594,790 
Non-owner occupied534 10,070 — 14,156 24,760 1,809,256 1,834,016 
Owner occupied1,024 — — 16,446 17,470 735,833 753,303 
Loans to individuals6,733 1,225 490 32 8,480 1,449,390 1,457,870 
Automobile and recreational vehicles6,262 1,022 168 30 7,482 1,379,713 1,387,195 
Consumer credit cards50 35 — — 85 9,411 9,496 
Consumer other421 168 322 2 913 60,266 61,179 
Total loans and leases$22,032 $13,760 $1,288 $91,756 $128,836 $9,379,203 $9,508,039 
Nonaccrual Loans
The previous tables summarize nonaccrual loans by loan segment. The Company generally places loans on nonaccrual status when the full and timely collection of interest or principal becomes uncertain, when part of the principal balance has been charged off and no restructuring has occurred, or the loans reach a certain number of days past due. Generally, loans 90 days or more past due are placed on nonaccrual status, except for most consumer loans, which are placed on nonaccrual status at 150 days past due. Consumer loans related to automobile and recreational vehicles are either charged off or repossessed at no later than 90 days past due unless the borrower is in the process of collection through bankruptcy proceedings.
When a loan is placed on nonaccrual, the accrued unpaid interest receivable is reversed against interest income and all future payments received are applied as a reduction to the loan principal. Generally, the loan is returned to accrual status when (a) all delinquent interest and principal becomes current under the terms of the loan agreement or (b) the loan is both well-secured and in the process of collection and collectability is no longer in doubt.
Nonaccrual loans in the above tables include loans with government guarantees of $28.1 million at March 31, 2026 and $31.5 million at December 31, 2025.
Nonperforming Loans
Management considers loans to be nonperforming when, based on current information and events, it is determined that the Company will not be able to collect all amounts due according to the loan contract, including scheduled interest payments. When management identifies a loan as nonperforming, the credit loss is measured based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, except when the sole source for repayment of the loan is the operation or liquidation of collateral. When the loan is collateral dependent, the appraised value less estimated cost to sell is
utilized. If management determines that the value of the loan is less than the recorded investment in the loan, a credit loss is recognized through an allowance estimate or a charge-off to the allowance for credit losses.
When the ultimate collectability of the total principal of a nonperforming loan is in doubt and the loan is on nonaccrual status, all payments are applied to principal under the cost recovery method. When the ultimate collectability of the total principal of a nonperforming loan is not in doubt and the loan is on nonaccrual status, contractual interest is credited to interest income when received under the cash basis method.
At March 31, 2026, there was $1.1 million in nonperforming loans held for sale. At December 31, 2025, there were no nonperforming loans held for sale. During both the three months ended March 31, 2026 and 2025, there were no gains recognized on the sale of nonperforming loans.
The following tables include the recorded investment and unpaid principal balance for nonperforming loans with the associated allowance amount, if applicable, as of March 31, 2026 and December 31, 2025. Also presented are the average recorded investment in nonperforming loans and the related amount of interest recognized while the loan was considered nonperforming. Average balances are calculated using month-end balances of the loans for the period reported and are included in the table below based on their period-end allowance position.
 March 31, 2026December 31, 2025
 Recorded
investment		Unpaid
principal
balance		Related specific
allowance		Recorded
investment		Unpaid
principal
balance		Related specific
allowance
 (dollars in thousands)
With no related specific allowance recorded:
Commercial, financial, agricultural and other$23,870 $41,559 $22,422 $31,583 
Time and demand21,900 39,589 21,092 30,253 
Equipment finance1,970 1,970 1,330 1,330 
Time and demand other— — — — 
Real estate construction— — 1,475 1,475 
Construction other— — 1,475 1,475 
Construction residential— — — — 
Residential real estate10,745 12,219 11,874 13,678 
Residential first lien7,190 8,055 7,219 8,148 
Residential junior lien/home equity3,555 4,164 4,655 5,530 
Commercial real estate16,684 22,609 17,853 23,807 
Multifamily10 12 10 12 
Non-owner occupied9,288 13,401 8,799 12,879 
Owner occupied7,386 9,196 9,044 10,916 
Loans to individuals9 32 32 78 
Automobile and recreational vehicles7 16 30 62 
Consumer other2 16 2 16 
Subtotal51,308 76,419 53,656 70,621 
With a specific allowance recorded:
Commercial, financial, agricultural and other21,290 23,057 $11,229 24,196 34,249 $6,959 
Time and demand21,290 23,057 11,229 24,196 34,249 6,959 
Equipment finance— — — — — — 
Time and demand other— — — — — — 
Real estate construction— — — — — — 
Construction other— — — — — — 
Construction residential— — — — — — 
Residential real estate2,486 2,782 209 1,145 1,160 162 
Residential first lien1,340 1,358 203 1,145 1,160 162 
Residential junior lien/home equity1,146 1,424 6 — — — 
Commercial real estate16,080 16,140 2,546 12,759 12,871 2,715 
Multifamily11,699 11,700 2,160 — — — 
Non-owner occupied— — — 5,357 5,357 2,280 
Owner occupied4,381 4,440 386 7,402 7,514 435 
Loans to individuals— — — — — — 
Automobile and recreational vehicles— — — — — — 
Consumer other— — — — — — 
Subtotal39,856 41,979 13,984 38,100 48,280 9,836 
Total$91,164 $118,398 $13,984 $91,756 $118,901 $9,836 
 For the Three Months Ended March 31,
 20262025
 Average
recorded
investment		Interest
income
recognized		Average
recorded
investment		Interest
income
recognized
 (dollars in thousands)
With no related specific allowance recorded:
Commercial, financial, agricultural and other$29,643 $12 $8,684 $78 
Time and demand27,755 12 7,932 78 
Equipment finance1,888 — 752 — 
Time and demand other— — — — 
Real estate construction983 — 1,851 106 
Construction other983 — 1,851 106 
Construction residential— — — — 
Residential real estate11,025 27 10,122 19 
Residential first lien7,504 27 7,245 19 
Residential junior lien/home equity3,521 — 2,877 — 
Commercial real estate22,570 8 16,849 184 
Multifamily10 — 20 — 
Non-owner occupied12,266 — 13,887 184 
Owner occupied10,294 8 2,942 — 
Loans to individuals27 — 269 — 
Automobile and recreational vehicles16 — 198 — 
Consumer other11 — 71 — 
Subtotal64,248 47 37,775 387 
With a specific allowance recorded:
Commercial, financial, agricultural and other15,685 — 7,190 — 
Time and demand15,685 — 7,103 — 
Equipment finance— — 87 — 
Time and demand other— — — — 
Real estate construction— — — — 
Construction other— — — — 
Construction residential— — — — 
Residential real estate2,332 — 2,354 — 
Residential first lien1,186 — 756 — 
Residential junior lien/home equity1,146 — 1,598 — 
Commercial real estate8,281 — 10,530 — 
Multifamily3,900 — — — 
Non-owner occupied— — 4,274 — 
Owner occupied4,381 — 6,256 — 
Loans to individuals— — — — 
Automobile and recreational vehicles— — — — 
Consumer other— — — — 
Subtotal26,298 — 20,074 — 
Total$90,546 $47 $57,849 $387 
Unfunded commitments related to nonperforming loans were $3.8 million and $0.2 million at March 31, 2026 and December 31, 2025, respectively. After consideration of the requirements to draw and available collateral related to these
commitments, it was determined that no reserve was required for these commitments at March 31, 2026 and December 31, 2025.
Loan Modifications Made to Borrowers Experiencing Financial Difficulty
In accordance with ASU 2022-02, Financial Instruments Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures ("ASU 2022-02"), modifications to borrowers experiencing financial difficulty may include interest rate reductions, principal forgiveness, other-than-insignificant payment delay, term extensions or any combination thereof. When calculating the allowance for credit losses, these modifications are included in their respective loan segment and an allowance is determined by a loss given default and probability of default methodology.
The following tables present the amortized cost basis of loan modifications made to borrowers experiencing financial difficulty:
For the Three Months Ended March 31, 2026
Rate ReductionTerm ExtensionPayment DeferralTerm Extension and Payment DeferralRate Reduction, Term Extension and Payment DeferralRate Reduction and Payment DeferralTotalPercentage of Total Loans and Leases
(dollars in thousands)
Commercial real estate$— $— $— $— $12,840 $— $12,840 0.41 
Non-owner occupied— — — — 12,840 — 12,840 0.72 
Total$— $— $— $— $12,840 $— $12,840 0.14 %
For the Three Months Ended March 31, 2025
Rate ReductionTerm ExtensionPayment DeferralTerm Extension and Payment DeferralRate Reduction, Term Extension and Payment DeferralRate Reduction and Payment DeferralTotalPercentage of Total Loans and Leases
(dollars in thousands)
Residential real estate$— $— $— $581 $— $— $581 0.03 %
Residential first lien— — — 559 — — 559 0.03 
Residential junior lien/home equity— — — 22 — — 22 — 
Commercial real estate— — — — 3,201 — 3,201 0.10 
Non-owner occupied— — — — 3,201 — 3,201 0.18 
Total$— $— $— $581 $3,201 $— $3,782 0.04 %
A modification is considered to be in default when the loan is 90 days or more past due. The following table shows modifications considered to be in default.
March 31, 2026December 31, 2025
Number of ContractsBalanceNumber of ContractsBalance
(dollars in thousands)
Commercial, financial, agricultural and other1 $100 1 $2,522 
Time and demand1 100 1 2,522 
Residential real estate2 314 2 321 
Residential first lien2 314 2 321 
Total loans and leases3 $414 3 $2,843 
The following table shows the payment status of loans that have been modified in the last twelve months prior to the date presented:
March 31, 2026
Current30 - 59 days past due60 - 89 days past due90 days or greaterTotal
(dollars in thousands)
Commercial, financial, agricultural and other$1,085 $— $— $— $1,085 
Time and demand964 — — — 964 
Commercial credit cards— — — — — 
Equipment finance121 — — — 121 
Time and demand other— — — — — 
Real estate construction— — — — — 
Construction other— — — — — 
Construction residential— — — — — 
Residential real estate1,807 — 129 335 2,271 
Residential first lien1,783 — 129 335 2,247 
Residential junior lien/home equity24 — — — 24 
Commercial real estate12,840 — — 6,156 18,996 
Multifamily— — — — — 
Non-owner occupied12,840 — — 6,156 18,996 
Owner occupied— — — — — 
Loans to individuals— — — — — 
Automobile and recreational vehicles— — — — — 
Consumer credit cards— — — — — 
Consumer other— — — — — 
Total loans and leases$15,732 $— $129 $6,491 $22,352 

December 31, 2025
Current30 - 59 days past due60 - 89 days past due90 days or greaterTotal
(dollars in thousands)
Commercial, financial, agricultural and other$989 $— $— $2,522 $3,511 
Time and demand864 — — 2,522 3,386 
Equipment finance125 — — — 125 
Residential real estate227 1,823 23 321 2,394 
Residential first lien182 1,823 23 321 2,349 
Residential junior lien/home equity45 — — — 45 
Commercial real estate9,399 — — — 9,399 
Non-owner occupied9,399 — — — 9,399 
Total loans and leases$10,615 $1,823 $23 $2,843 $15,304 
The following tables provide detail related to the allowance for credit losses:
 For the Three Months Ended March 31, 2026
Beginning balanceCharge-offsRecoveries
Provision (credit)a
Ending balance
(dollars in thousands)
Commercial, financial, agricultural and other$38,149 $(4,014)$406 $8,229 $42,770 
Time and demand22,223 (1,917)130 5,431 25,867 
Commercial credit cards177 (141)1 171 208 
Equipment finance14,138 (1,377)215 1,914 14,890 
Time and demand other1,611 (579)60 713 1,805 
Real estate construction7,808 (326)— (381)7,101 
Construction other7,118 (326)— (231)6,561 
Construction residential690 — — (150)540 
Residential real estate21,629 (145)26 435 21,945 
Residential first lien15,056 (106)16 401 15,367 
Residential junior lien/home equity6,573 (39)10 34 6,578 
Commercial real estate40,271 (2,308)40 1,791 39,794 
Multifamily5,528 — — 1,994 7,522 
Non-owner occupied24,865 (2,016)6 (950)21,905 
Owner occupied9,878 (292)34 747 10,367 
Loans to individuals17,911 (2,644)804 1,502 17,573 
Automobile and recreational vehicles14,962 (2,145)713 1,225 14,755 
Consumer credit cards473 (110)21 51 435 
Consumer other2,476 (389)70 226 2,383 
Total loans and leases$125,768 $(9,437)$1,276 $11,576 $129,183 
a) The provision expense (credit) shown here excludes the provision for off-balance sheet credit exposure included in the income statement.
 For the Three Months Ended March 31, 2025
 Beginning balanceCharge-offsRecoveries
Provision (credit)a
Ending balance
 (dollars in thousands)
Commercial, financial, agricultural and other$29,131 $(4,019)$3,690 $2,543 $31,345 
Time and demand19,433 (2,976)3,484 459 20,400 
Commercial credit cards182 (98)22 104 210 
Equipment finance7,844 (576)131 1,377 8,776 
Time and demand other1,672 (369)53 603 1,959 
Real estate construction6,030 — — 802 6,832 
Construction other5,916 — — 759 6,675 
Construction residential114 — — 43 157 
Residential real estate22,396 (108)137 (87)22,338 
Residential first lien15,758 (33)16 (138)15,603 
Residential junior lien/home equity6,638 (75)121 51 6,735 
Commercial real estate40,232 (1,464)156 (553)38,371 
Multifamily5,431 — — 47 5,478 
Non-owner occupied23,332 (874)110 (754)21,814 
Owner occupied11,469 (590)46 154 11,079 
Loans to individuals21,117 (2,419)929 1,418 21,045 
Automobile and recreational vehicles18,693 (1,805)846 1,315 19,049 
Consumer credit cards341 (95)18 59 323 
Consumer other2,083 (519)65 44 1,673 
Total loans and leases$118,906 $(8,010)$4,912 $4,123 $119,931 
a) The provision expense (credit) shown here excludes the provision for off-balance sheet credit exposure included in the income statement.
Recorded Investment and Unpaid Principal Balance for Impaired Loans with Associated Allowance
The following tables include the recorded investment and unpaid principal balance for nonperforming loans with the associated allowance amount, if applicable, as of March 31, 2026 and December 31, 2025. Also presented are the average recorded investment in nonperforming loans and the related amount of interest recognized while the loan was considered nonperforming. Average balances are calculated using month-end balances of the loans for the period reported and are included in the table below based on their period-end allowance position.
 March 31, 2026December 31, 2025
 Recorded
investment		Unpaid
principal
balance		Related specific
allowance		Recorded
investment		Unpaid
principal
balance		Related specific
allowance
 (dollars in thousands)
With no related specific allowance recorded:
Commercial, financial, agricultural and other$23,870 $41,559 $22,422 $31,583 
Time and demand21,900 39,589 21,092 30,253 
Equipment finance1,970 1,970 1,330 1,330 
Time and demand other— — — — 
Real estate construction— — 1,475 1,475 
Construction other— — 1,475 1,475 
Construction residential— — — — 
Residential real estate10,745 12,219 11,874 13,678 
Residential first lien7,190 8,055 7,219 8,148 
Residential junior lien/home equity3,555 4,164 4,655 5,530 
Commercial real estate16,684 22,609 17,853 23,807 
Multifamily10 12 10 12 
Non-owner occupied9,288 13,401 8,799 12,879 
Owner occupied7,386 9,196 9,044 10,916 
Loans to individuals9 32 32 78 
Automobile and recreational vehicles7 16 30 62 
Consumer other2 16 2 16 
Subtotal51,308 76,419 53,656 70,621 
With a specific allowance recorded:
Commercial, financial, agricultural and other21,290 23,057 $11,229 24,196 34,249 $6,959 
Time and demand21,290 23,057 11,229 24,196 34,249 6,959 
Equipment finance— — — — — — 
Time and demand other— — — — — — 
Real estate construction— — — — — — 
Construction other— — — — — — 
Construction residential— — — — — — 
Residential real estate2,486 2,782 209 1,145 1,160 162 
Residential first lien1,340 1,358 203 1,145 1,160 162 
Residential junior lien/home equity1,146 1,424 6 — — — 
Commercial real estate16,080 16,140 2,546 12,759 12,871 2,715 
Multifamily11,699 11,700 2,160 — — — 
Non-owner occupied— — — 5,357 5,357 2,280 
Owner occupied4,381 4,440 386 7,402 7,514 435 
Loans to individuals— — — — — — 
Automobile and recreational vehicles— — — — — — 
Consumer other— — — — — — 
Subtotal39,856 41,979 13,984 38,100 48,280 9,836 
Total$91,164 $118,398 $13,984 $91,756 $118,901 $9,836 
 For the Three Months Ended March 31,
 20262025
 Average
recorded
investment		Interest
income
recognized		Average
recorded
investment		Interest
income
recognized
 (dollars in thousands)
With no related specific allowance recorded:
Commercial, financial, agricultural and other$29,643 $12 $8,684 $78 
Time and demand27,755 12 7,932 78 
Equipment finance1,888 — 752 — 
Time and demand other— — — — 
Real estate construction983 — 1,851 106 
Construction other983 — 1,851 106 
Construction residential— — — — 
Residential real estate11,025 27 10,122 19 
Residential first lien7,504 27 7,245 19 
Residential junior lien/home equity3,521 — 2,877 — 
Commercial real estate22,570 8 16,849 184 
Multifamily10 — 20 — 
Non-owner occupied12,266 — 13,887 184 
Owner occupied10,294 8 2,942 — 
Loans to individuals27 — 269 — 
Automobile and recreational vehicles16 — 198 — 
Consumer other11 — 71 — 
Subtotal64,248 47 37,775 387 
With a specific allowance recorded:
Commercial, financial, agricultural and other15,685 — 7,190 — 
Time and demand15,685 — 7,103 — 
Equipment finance— — 87 — 
Time and demand other— — — — 
Real estate construction— — — — 
Construction other— — — — 
Construction residential— — — — 
Residential real estate2,332 — 2,354 — 
Residential first lien1,186 — 756 — 
Residential junior lien/home equity1,146 — 1,598 — 
Commercial real estate8,281 — 10,530 — 
Multifamily3,900 — — — 
Non-owner occupied— — 4,274 — 
Owner occupied4,381 — 6,256 — 
Loans to individuals— — — — 
Automobile and recreational vehicles— — — — 
Consumer other— — — — 
Subtotal26,298 — 20,074 — 
Total$90,546 $47 $57,849 $387