Allowance for Credit Losses

6 Months Ended

Jun. 30, 2026

4. Allowance for Credit Losses

The Company maintains the allowance for credit losses for loans and leases (the “ACL”) that is deducted from the amortized cost basis of loans and leases to present the net carrying value of loans and leases expected to be collected. At June 30, 2026, the ACL was $168.1 million, a nominal decrease of $0.4 million from the December 31, 2025 balance of $168.5 million. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount of loans and leases. The economic outlook used to calculate the ACL as of June 30, 2026 remained relatively stable compared to December 31, 2025. While management utilizes its best judgment and information available, the ultimate appropriateness of the ACL is dependent upon a variety of factors beyond the Company’s control, including the performance of the Company’s loan portfolio, the economy, changes in interest rates and the view of the regulatory authorities toward loan classifications.

The Company also maintains an estimated reserve for unfunded commitments included in other liabilities on the unaudited interim consolidated balance sheets. The reserve for unfunded commitments is reduced in the period in which the off-balance sheet financial instruments expire, loan funding occurs, or is otherwise settled.

The Company’s methodology is more fully described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, which should be read in conjunction with these unaudited interim consolidated financial statements as of and for the three and six months ended June 30, 2026.

Rollforward of the Allowance for Credit Losses

The following presents the activity in the ACL by class of loans and leases for the three and six months ended June 30, 2026 and 2025:

Three Months Ended June 30, 2026

Commercial Lending

Residential Lending

Commercial

Home

and

Real

Lease

Residential

Equity

(dollars in thousands)

Industrial

Estate

Construction

Financing

Mortgage

Line

Consumer

Total

Allowance for credit losses:

Balance at beginning of period

23,890

37,965

7,240

2,732

37,404

14,728

45,359

169,318

Charge-offs

(769)

—

(23)

(5,490)

(6,282)

Recoveries

281

—

1,820

2,145

Provision (benefit)

(4,614)

984

710

(268)

(974)

569

6,468

2,875

Balance at end of period

18,788

38,949

7,950

2,464

36,446

15,302

48,157

168,056

Six Months Ended June 30, 2026

Commercial Lending

Residential Lending

Commercial

Home

and

Real

Lease

Residential

Equity

(dollars in thousands)

Industrial

Estate

Construction

Financing

Mortgage

Line

Consumer

Total

Allowance for credit losses:

Balance at beginning of period

20,833

38,757

7,605

2,778

36,384

15,192

46,919

168,468

Charge-offs

(3,394)

—

(23)

(10,334)

(13,751)

Recoveries

547

—

4,068

4,714

Provision (benefit)

802

192

345

(317)

7,504

8,625

Balance at end of period

18,788

38,949

7,950

2,464

36,446

15,302

48,157

168,056


	Three Months Ended June 30, 2025
	Commercial Lending								Residential Lending
	Commercial		Commercial								Home
	and		Real				Lease		Residential		Equity
(dollars in thousands)	Industrial		Estate		Construction		Financing		Mortgage		Line		Consumer		Total
Allowance for credit losses:
Balance at beginning of period	$	17,992	$	39,370	$	9,511	$	2,344	$	34,374	$	10,270	$	52,751	$	166,612
Charge-offs		(688)		—		—		(82)		—		(16)		(4,543)		(5,329)
Recoveries		196		—		—		—		109		32		1,705		2,042
Provision (benefit)		2,561		(106)		(566)		81		3,482		904		(1,856)		4,500
Balance at end of period	$	20,061	$	39,264	$	8,945	$	2,343	$	37,965	$	11,190	$	48,057	$	167,825


	Six Months Ended June 30, 2025
	Commercial Lending								Residential Lending
	Commercial		Commercial								Home
	and		Real				Lease		Residential		Equity
(dollars in thousands)	Industrial		Estate		Construction		Financing		Mortgage		Line		Consumer		Total
Allowance for credit losses:
Balance at beginning of period	$	16,332	$	40,624	$	8,570	$	2,269	$	39,230	$	10,205	$	43,163	$	160,393
Charge-offs		(2,147)		—		—		(82)		—		(30)		(9,568)		(11,827)
Recoveries		599		251		—		—		129		96		3,684		4,759
Provision (benefit)		5,277		(1,611)		375		156		(1,394)		919		10,778		14,500
Balance at end of period	$	20,061	$	39,264	$	8,945	$	2,343	$	37,965	$	11,190	$	48,057	$	167,825

Rollforward of the Reserve for Unfunded Commitments

The following presents the activity in the Reserve for Unfunded Commitments for the three and six months ended June 30, 2026 and 2025:

Three Months Ended June 30, 2026

Commercial Lending

Residential Lending

Commercial

Home

and

Real

Lease

Residential

Equity

(dollars in thousands)

Industrial

Estate

Construction

Financing

Mortgage

Line

Consumer

Total

Reserve for unfunded commitments:

Balance at beginning of period

7,299

1,120

10,022

—

16,431

34,947

Provision (benefit)

591

244

2,033

—

(24)

(102)

(17)

2,725

Balance at end of period

7,890

1,364

12,055

—

16,329

37,672

Six Months Ended June 30, 2026

Commercial Lending

Residential Lending

Commercial

Home

and

Real

Lease

Residential

Equity

(dollars in thousands)

Industrial

Estate

Construction

Financing

Mortgage

Line

Consumer

Total

Reserve for unfunded commitments:

Balance at beginning of period

7,859

1,220

9,772

—

16,771

35,697

Provision (benefit)

144

2,283

—

(31)

(442)

(10)

1,975

Balance at end of period

7,890

1,364

12,055

—

16,329

37,672


	Three Months Ended June 30, 2025
	Commercial Lending								Residential Lending
	Commercial		Commercial								Home
	and		Real				Lease		Residential		Equity
(dollars in thousands)	Industrial		Estate		Construction		Financing		Mortgage		Line		Consumer		Total
Reserve for unfunded commitments:
Balance at beginning of period	$	8,826	$	1,135	$	7,579	$	—	$	87	$	15,681	$	39	$	33,347
Provision (benefit)		(334)		(132)		(176)		—		(66)		724		(16)		—
Balance at end of period	$	8,492	$	1,003	$	7,403	$	—	$	21	$	16,405	$	23	$	33,347


	Six Months Ended June 30, 2025
	Commercial Lending								Residential Lending
	Commercial		Commercial								Home
	and		Real				Lease		Residential		Equity
(dollars in thousands)	Industrial		Estate		Construction		Financing		Mortgage		Line		Consumer		Total
Reserve for unfunded commitments:
Balance at beginning of period	$	8,112	$	1,003	$	7,818	$	—	$	3	$	15,893	$	18	$	32,847
Provision (benefit)		380		—		(415)		—		18		512		5		500
Balance at end of period	$	8,492	$	1,003	$	7,403	$	—	$	21	$	16,405	$	23	$	33,347

Credit Quality Information

The Company performs an internal loan review and grading or scoring procedures on an ongoing basis. The review provides management with periodic information as to the quality of the loan portfolio and effectiveness of the Company’s lending policies and procedures. The objective of the loan review and grading or scoring procedures is to identify, in a timely manner, existing or emerging credit quality issues so that appropriate steps can be initiated to avoid or minimize future losses.

Loans and leases subject to grading primarily include: commercial and industrial loans, commercial real estate loans, construction loans and lease financing. Other loans subject to grading include installment loans to businesses or individuals for business and commercial purposes, overdraft lines of credit, commercial credit cards, and other credits as may be determined. Credit quality indicators for internally graded loans and leases are generally updated on an annual basis or on a quarterly basis for those loans and leases deemed to be of potentially higher risk.

An internal credit risk rating system is used to determine loan grade and is based on borrower credit risk and transactional risk. The loan grading process is a mechanism used to determine the risk of a particular borrower and is based on the following factors of a borrower: character, earnings and operating cash flow, asset and liability structure, debt capacity, management and controls, borrowing entity, and industry and operating environment.

Pass – “Pass” (uncriticized) loans and leases, are not considered to carry greater than normal risk. The borrower has the apparent ability to satisfy obligations to the Company, and therefore no loss in ultimate collection is anticipated.

Special Mention – Loans and leases that have potential weaknesses deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for assets or in the institution’s credit position at some future date. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification.

Substandard – Loans and leases that are inadequately protected by the current financial condition and paying capacity of the obligor or by any collateral pledged. Loans and leases so classified must have a well-defined weakness or weaknesses that jeopardize the collection of the debt. They are characterized by the distinct possibility that the bank may sustain some loss if the deficiencies are not corrected.

Doubtful – Loans and leases that have weaknesses found in substandard borrowers with the added provision that the weaknesses make collection of debt in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loss – Loans and leases classified as loss are considered uncollectible and of such little value that their continuance as an asset is not warranted. This classification does not mean that the loan or lease has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be effected in the future.

Loans that are primarily monitored for credit quality using FICO scores include: residential mortgage loans, home equity lines and consumer loans. FICO scores are calculated primarily based on a consideration of payment history, the current amount of debt, the length of credit history available, a recent history of new sources of credit and the mix of credit type. FICO scores are updated on a monthly, quarterly or bi-annual basis, depending on the product type.

The amortized cost basis by year of origination and credit quality indicator of the Company’s loans and leases as of June 30, 2026 was as follows:

Revolving

Loans

Converted

Term Loans

Revolving

to Term

Amortized Cost Basis by Origination Year

Loans

Amortized

(dollars in thousands)

2026

2025

2024

2023

2022

Prior

Cost Basis

Total

Commercial Lending

Commercial and Industrial

Risk rating:

Pass

121,498

265,147

116,522

63,411

57,461

302,522

1,229,183

30,382

2,186,126

Special Mention

439

6,038

692

1,689

2,473

807

8,308

—

20,446

Substandard

145

687

2,334

376

2,998

18,736

15,143

—

40,419

Other ⁽¹⁾

11,798

14,486

7,222

3,453

2,601

1,743

51,588

—

92,891

Total Commercial and Industrial

133,880

286,358

126,770

68,929

65,533

323,808

1,304,222

30,382

2,339,882

Current period gross charge-offs

—

1,392

1,862

—

3,394

Commercial Real Estate

Risk rating:

Pass

439,619

723,674

369,595

404,872

658,129

1,814,129

117,006

6,353

4,533,377

Special Mention

—

3,623

1,652

104,548

71,474

2,376

—

183,673

Substandard

969

—

5,309

695

37,564

16,219

5,207

—

65,963

Other ⁽¹⁾

—

117

—

117

Total Commercial Real Estate

440,588

723,674

378,527

407,219

800,241

1,901,939

124,589

6,353

4,783,130

Current period gross charge-offs

—

Construction

Risk rating:

Pass

55,488

124,793

219,701

61,476

169,561

31,308

44,234

—

706,561

Substandard

—

904

—

904

Other ⁽¹⁾

3,050

7,895

5,419

3,773

1,723

1,762

679

—

24,301

Total Construction

58,538

132,688

225,120

65,249

171,284

33,974

44,913

—

731,766

Current period gross charge-offs

—

Lease Financing

Risk rating:

Pass

94,390

63,777

77,896

84,839

35,648

92,657

—

449,207

Special Mention

—

419

—

570

Substandard

—

680

—

680

Total Lease Financing

94,390

63,777

78,653

85,258

35,722

92,657

—

450,457

Current period gross charge-offs

—

Total Commercial Lending

727,396

1,206,497

809,070

626,655

1,072,780

2,352,378

1,473,724

36,735

8,305,235

Current period gross charge-offs

—

1,392

1,862

—

3,394

(continued)


															Revolving
															Loans
															Converted
	Term Loans												Revolving		to Term
	Amortized Cost Basis by Origination Year												Loans		Loans
(continued)													Amortized		Amortized
(dollars in thousands)	2026		2025		2024		2023		2022		Prior		Cost Basis		Cost Basis		Total
Residential Lending
Residential Mortgage
FICO:
740 and greater	$	118,185	$	192,744	$	132,076	$	163,841	$	426,056	$	2,240,745	$	—	$	—	$	3,273,647
680 - 739		13,300		21,120		19,686		27,538		62,622		267,910		—		—		412,176
620 - 679		6,310		3,842		5,882		4,488		28,030		68,426		—		—		116,978
550 - 619		—		2,487		1,953		1,251		2,653		22,325		—		—		30,669
Less than 550		—		—		—		1,143		3,504		14,639		—		—		19,286
No Score ⁽³⁾		7,172		6,764		3,098		4,753		15,334		49,997		—		—		87,118
Other ⁽²⁾		2,645		22,254		7,104		11,039		13,174		40,616		7,501		—		104,333
Total Residential Mortgage		147,612		249,211		169,799		214,053		551,373		2,704,658		7,501		—		4,044,207
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

Home Equity Line
FICO:
740 and greater		—		—		—		—		—		—		938,399		343		938,742
680 - 739		—		—		—		—		—		—		171,860		1,294		173,154
620 - 679		—		—		—		—		—		—		42,343		785		43,128
550 - 619		—		—		—		—		—		—		13,793		624		14,417
Less than 550		—		—		—		—		—		—		11,162		30		11,192
No Score ⁽³⁾		—		—		—		—		—		—		763		—		763
Total Home Equity Line		—		—		—		—		—		—		1,178,320		3,076		1,181,396
Current period gross charge-offs		—		—		—		—		—		—		23		—		23

Total Residential Lending	$	147,612	$	249,211	$	169,799	$	214,053	$	551,373	$	2,704,658	$	1,185,821	$	3,076	$	5,225,603
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	23	$	—	$	23

Consumer Lending
FICO:
740 and greater	$	60,328	$	93,986	$	54,390	$	34,205	$	35,359	$	12,947	$	99,798	$	56	$	391,069
680 - 739		49,967		75,396		37,212		20,373		17,060		7,497		85,511		556		293,572
620 - 679		30,116		38,437		16,008		9,023		9,299		4,877		51,080		896		159,736
550 - 619		6,036		12,294		8,393		5,766		5,734		3,529		17,345		845		59,942
Less than 550		1,239		5,754		4,578		2,826		2,807		1,750		5,927		537		25,418
No Score ⁽³⁾		2,691		332		4		22		—		15		35,963		165		39,192
Other ⁽²⁾		201		3,921		—		—		—		1,485		71,925		—		77,532
Total Consumer Lending	$	150,578	$	230,120	$	120,585	$	72,215	$	70,259	$	32,100	$	367,549	$	3,055	$	1,046,461
Current period gross charge-offs	$	60	$	1,689	$	1,147	$	827	$	532	$	1,262	$	4,447	$	370	$	10,334

Total Loans and Leases	$	1,025,586	$	1,685,828	$	1,099,454	$	912,923	$	1,694,412	$	5,089,136	$	3,027,094	$	42,866	$	14,577,299
Current period gross charge-offs	$	60	$	1,773	$	1,193	$	827	$	542	$	2,654	$	6,332	$	370	$	13,751

(1)	Other credit quality indicators used for monitoring purposes are primarily FICO scores. The majority of the loans in this population were originated to borrowers with a prime FICO score (680 and above). As of June 30, 2026, the majority of the loans in this population were current.

(2)	Other credit quality indicators used for monitoring purposes are primarily internal risk ratings. The majority of the loans in this population were graded with a “Pass” rating. As of June 30, 2026, the majority of the loans in this population were current.

(3)	No FICO scores are primarily related to loans and leases extended to non-residents. Loans and leases of this nature are primarily secured by collateral and/or are closely monitored for performance.

The amortized cost basis by year of origination and credit quality indicator of the Company’s loans and leases as of December 31, 2025 was as follows:


															Revolving
															Loans
															Converted
	Term Loans												Revolving		to Term
	Amortized Cost Basis by Origination Year												Loans		Loans
													Amortized		Amortized
(dollars in thousands)	2025		2024		2023		2022		2021		Prior		Cost Basis		Cost Basis		Total
Commercial Lending
Commercial and Industrial
Risk rating:
Pass	$	321,132	$	120,082	$	61,358	$	99,174	$	150,013	$	228,890	$	1,007,162	$	14,182	$	2,001,993
Special Mention		3,790		825		1,900		1,940		341		841		3,819		—		13,456
Substandard		746		—		368		7,827		19		20,435		38,466		—		67,861
Other ⁽¹⁾		19,067		9,027		5,046		3,560		1,081		1,164		49,078		—		88,023
Total Commercial and Industrial		344,735		129,934		68,672		112,501		151,454		251,330		1,098,525		14,182		2,171,333
Current period gross charge-offs		1		170		775		547		407		2,800		31		—		4,731

Commercial Real Estate
Risk rating:
Pass		732,672		288,924		389,773		735,412		566,285		1,525,374		115,640		6,881		4,360,961
Special Mention		—		681		37,667		43,819		41,393		21,317		1,314		—		146,191
Substandard		—		5,547		529		59,126		989		16,109		751		—		83,051
Other ⁽¹⁾		—		—		—		—		—		123		—		—		123
Total Commercial Real Estate		732,672		295,152		427,969		838,357		608,667		1,562,923		117,705		6,881		4,590,326
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

Construction
Risk rating:
Pass		82,330		218,505		106,890		192,608		77,380		47,078		26,917		—		751,708
Special Mention		—		—		—		27,972		—		121		—		—		28,093
Substandard		—		—		—		—		—		904		—		—		904
Other ⁽¹⁾		7,773		8,300		4,760		4,019		160		1,872		686		—		27,570
Total Construction		90,103		226,805		111,650		224,599		77,540		49,975		27,603		—		808,275
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

Lease Financing
Risk rating:
Pass		122,978		80,669		89,475		43,015		9,087		91,109		—		—		436,333
Special Mention		—		—		556		42		—		—		—		—		598
Substandard		—		4,379		408		212		—		—		—		—		4,999
Total Lease Financing		122,978		85,048		90,439		43,269		9,087		91,109		—		—		441,930
Current period gross charge-offs		—		662		—		—		—		—		—		—		662

Total Commercial Lending	$	1,290,488	$	736,939	$	698,730	$	1,218,726	$	846,748	$	1,955,337	$	1,243,833	$	21,063	$	8,011,864
Current period gross charge-offs	$	1	$	832	$	775	$	547	$	407	$	2,800	$	31	$	—	$	5,393

(continued)


															Revolving
															Loans
															Converted
	Term Loans												Revolving		to Term
	Amortized Cost Basis by Origination Year												Loans		Loans
(continued)													Amortized		Amortized
(dollars in thousands)	2025		2024		2023		2022		2021		Prior		Cost Basis		Cost Basis		Total
Residential Lending
Residential Mortgage
FICO:
740 and greater	$	196,591	$	146,779	$	188,885	$	455,130	$	881,320	$	1,479,533	$	—	$	—	$	3,348,238
680 - 739		21,211		19,044		26,493		57,219		94,557		171,825		—		—		390,349
620 - 679		7,054		2,100		5,535		24,857		23,888		51,817		—		—		115,251
550 - 619		—		721		1,188		3,126		6,334		14,464		—		—		25,833
Less than 550		—		1,968		887		3,000		4,653		9,415		—		—		19,923
No Score ⁽³⁾		8,082		5,093		5,384		15,829		9,523		44,549		—		—		88,460
Other ⁽²⁾		20,152		7,771		11,625		13,530		13,640		32,144		9,384		—		108,246
Total Residential Mortgage		253,090		183,476		239,997		572,691		1,033,915		1,803,747		9,384		—		4,096,300
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

Home Equity Line
FICO:
740 and greater		—		—		—		—		—		—		939,884		1,068		940,952
680 - 739		—		—		—		—		—		—		171,306		1,520		172,826
620 - 679		—		—		—		—		—		—		40,928		637		41,565
550 - 619		—		—		—		—		—		—		13,464		843		14,307
Less than 550		—		—		—		—		—		—		8,069		71		8,140
No Score ⁽³⁾		—		—		—		—		—		—		737		—		737
Total Home Equity Line		—		—		—		—		—		—		1,174,388		4,139		1,178,527
Current period gross charge-offs		—		—		—		—		—		—		30		—		30

Total Residential Lending	$	253,090	$	183,476	$	239,997	$	572,691	$	1,033,915	$	1,803,747	$	1,183,772	$	4,139	$	5,274,827
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	30	$	—	$	30

Consumer Lending
FICO:
740 and greater	$	113,519	$	65,981	$	42,560	$	49,118	$	20,240	$	4,462	$	102,761	$	110	$	398,751
680 - 739		86,088		47,861		28,552		24,684		10,429		2,974		87,662		529		288,779
620 - 679		44,816		20,455		11,809		11,804		5,695		2,379		50,406		963		148,327
550 - 619		9,253		8,439		6,414		7,503		3,497		2,004		16,764		832		54,706
Less than 550		2,491		4,263		3,213		3,809		1,948		1,287		5,745		498		23,254
No Score ⁽³⁾		1,775		5		40		5		—		22		36,868		156		38,871
Other ⁽²⁾		4,536		—		—		—		547		1,009		67,058		—		73,150
Total Consumer Lending	$	262,478	$	147,004	$	92,588	$	96,923	$	42,356	$	14,137	$	367,264	$	3,088	$	1,025,838
Current period gross charge-offs	$	802	$	2,494	$	1,693	$	1,873	$	947	$	2,425	$	8,367	$	872	$	19,473

Total Loans and Leases	$	1,806,056	$	1,067,419	$	1,031,315	$	1,888,340	$	1,923,019	$	3,773,221	$	2,794,869	$	28,290	$	14,312,529
Current period gross charge-offs	$	803	$	3,326	$	2,468	$	2,420	$	1,354	$	5,225	$	8,428	$	872	$	24,896

(1)	Other credit quality indicators used for monitoring purposes are primarily FICO scores. The majority of the loans in this population were originated to borrowers with a prime FICO score (680 and above). As of December 31, 2025, the majority of the loans in this population were current.

(2)	Other credit quality indicators used for monitoring purposes are primarily internal risk ratings. The majority of the loans in this population were graded with a “Pass” rating. As of December 31, 2025, the majority of the loans in this population were current.

(3)	No FICO scores are primarily related to loans and leases extended to non-residents. Loans and leases of this nature are primarily secured by collateral and/or are closely monitored for performance.

There were no loans and leases graded as Doubtful or Loss as of both June 30, 2026 and December 31, 2025.

Past-Due Status

The Company continually updates its aging analysis for loans and leases to monitor the migration of loans and leases into past due categories. The Company considers loans and leases that are delinquent for 30 days or more to be past due. As of June 30, 2026 and December 31, 2025, the aging analysis of the amortized cost basis of the Company’s past due loans and leases was as follows:

June 30, 2026

Past Due

Loans and

Greater

Leases Past

Than or

Due 90 Days

30-59

60-89

Equal to

or More and

Days

90 Days

Total

Total Loans

Still Accruing

(dollars in thousands)

Past Due

Current

and Leases

Interest

Commercial and industrial

8,313

1,070

3,393

12,776

2,327,106

2,339,882

249

Commercial real estate

752

2,941

628

4,321

4,778,809

4,783,130

—

Construction

160

1,420

904

2,484

729,282

731,766

—

Lease financing

—

565

449,892

450,457

—

Residential mortgage

14,804

4,890

12,119

31,813

4,012,394

4,044,207

771

Home equity line

3,565

2,444

5,839

11,848

1,169,548

1,181,396

—

Consumer

12,476

5,690

3,073

21,239

1,025,222

1,046,461

3,073

Total

40,070

18,455

26,521

85,046

14,492,253

14,577,299

4,093


	December 31, 2025
	Past Due												Loans and
					Greater								Leases Past
					Than or								Due 90 Days
	30-59		60-89		Equal to								or More and
	Days		Days		90 Days		Total				Total Loans		Still Accruing
(dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		and Leases		Interest
Commercial and industrial	$	3,009	$	7,756	$	685	$	11,450	$	2,159,883	$	2,171,333	$	318
Commercial real estate		798		18		436		1,252		4,589,074		4,590,326		—
Construction		2,420		—		1,065		3,485		804,790		808,275		—
Lease financing		135		30		570		735		441,195		441,930		—
Residential mortgage		18,387		6,522		8,133		33,042		4,063,258		4,096,300		55
Home equity line		5,928		1,642		4,878		12,448		1,166,079		1,178,527		—
Consumer		13,935		3,995		2,984		20,914		1,004,924		1,025,838		2,984
Total	$	44,612	$	19,963	$	18,751	$	83,326	$	14,229,203	$	14,312,529	$	3,357

Nonaccrual Loans and Leases

The Company generally places a loan or lease on nonaccrual status when management believes that collection of principal or interest has become doubtful or when a loan or lease becomes 90 days past due as to principal or interest, unless it is well secured and in the process of collection. The Company charges off a loan or lease when facts indicate that the loan or lease is considered uncollectible.

The amortized cost basis of loans and leases on nonaccrual status as of June 30, 2026 and December 31, 2025 and the amortized cost basis of loans and leases on nonaccrual status with no ACL as of June 30, 2026 and December 31, 2025 were as follows:


	June 30, 2026
	Nonaccrual
	Loans
	and Leases
	With No		Nonaccrual
	Allowance		Loans
(dollars in thousands)	for Credit Losses		and Leases
Commercial and industrial	$	1,405	$	4,054
Commercial real estate		2,252		2,879
Construction		1,627		1,788
Lease financing		—		680
Residential mortgage		10,322		18,675
Home equity line		1,685		11,425
Total Nonaccrual Loans and Leases	$	17,291	$	39,501


	December 31, 2025
	Nonaccrual
	Loans
	and Leases
	With No		Nonaccrual
	Allowance		Loans
(dollars in thousands)	for Credit Losses		and Leases
Commercial and industrial	$	—	$	8,805
Commercial real estate		2,397		3,007
Construction		1,627		1,788
Lease financing		—		734
Residential mortgage		5,703		16,423
Home equity line		856		10,271
Total Nonaccrual Loans and Leases	$	10,583	$	41,028

For the three and six months ended June 30, 2026, the Company recognized interest income of $0.2 million and $0.3 million, respectively, on nonaccrual loans and leases. For the three and six months ended June 30, 2025, the Company recognized interest income of $0.2 million and $0.6 million, respectively, on nonaccrual loans and leases. Furthermore, for the three and six months ended June 30, 2026, the amount of accrued interest receivables written off by reversing interest income was $0.4 million and $0.7 million, respectively, and for the three and six months ended June 30, 2025, the amount of accrued interest receivables written off by reversing interest income was $0.4 million and $0.7 million, respectively.

Collateral-Dependent Loans and Leases

Collateral-dependent loans and leases are those for which repayment (on the basis of the Company’s assessment as of the reporting date) is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. As of June 30, 2026 and December 31, 2025, the amortized cost basis of collateral-dependent loans were $22.2 million and $37.7 million, respectively. As of June 30, 2026 and December 31, 2025, these loans were primarily collateralized by residential real estate property, commercial real estate property and borrower assets and the fair value of collateral on substantially all collateral-dependent loans were significantly in excess of their amortized cost basis.

Loan Modifications to Borrowers Experiencing Financial Difficulty

Commercial and industrial loans with a borrower experiencing financial difficulty may be modified through interest rate reductions, term extensions, and converting revolving credit lines to term loans. Modifications of commercial real estate and construction loans with a borrower experiencing financial difficulty may involve reducing the interest rate for the remaining term of the loan or extending the maturity date at an interest rate lower than the current market rate for new debt with similar risk. Modifications of construction loans with a borrower experiencing financial difficulty may also involve extending the interest-only payment period. Interest continues to accrue on the missed payments and as a result, the effective yield on the loan remains unchanged. Modifications of residential real estate loans with a borrower experiencing financial difficulty may be comprised of loans where monthly payments are lowered to accommodate the borrowers' financial needs for a period of time, including extended interest-only periods and reamortization of the balance. Modifications of consumer loans with a borrower experiencing financial difficulty may involve interest rate reductions and term extensions.

Loans modified with a borrower experiencing financial difficulty, whether in default or not, may already be on nonaccrual status and in some cases, partial charge-offs may have already been taken against the outstanding loan balance. Loans modified with a borrower experiencing financial difficulty are evaluated for impairment. As a result, this may have a financial effect of impacting the specific ACL associated with the loan. An ACL for impaired commercial loans, including commercial real estate and construction loans, is measured based on the present value of expected future cash flows discounted at the loan's effective interest rate or if the loan is collateral-dependent, the estimated fair value of the collateral, less any selling costs. An ACL for impaired residential real estate loans is measured based on the estimated fair value of the collateral, less any selling costs. Management exercises significant judgment in developing these estimates.

The following tables present, by class of financing receivable and type of modification granted, the amortized cost basis as of June 30, 2026 and 2025, related to loans modified to borrowers experiencing financial difficulty during the three and six months ended June 30, 2026 and 2025, respectively:

Interest Rate Reduction

Three Months Ended

Six Months Ended

June 30, 2026

Amortized

% of Total Class

Amortized

% of Total Class

(dollars in thousands)

Cost Basis⁽¹⁾

of Financing Receivable

Cost Basis⁽¹⁾

of Financing Receivable

Consumer

414

0.04

771

0.07

Total

414

n/m

771

n/m

n/m – Represents less than 0.01% of total class of financing receivable.

(1)	The amortized cost basis reflects all partial paydowns and charge-offs since the modification date and do not include loans modified to borrowers experiencing financial difficulty that have been fully paid off, charged off, or foreclosed upon by the end of the period.


	Interest Rate Reduction
		Three Months Ended				Six Months Ended
		June 30, 2025				June 30, 2025
		Amortized	% of Total Class			Amortized	% of Total Class
(dollars in thousands)		Cost Basis⁽¹⁾	of Financing Receivable			Cost Basis⁽¹⁾	of Financing Receivable
Consumer	$	544	0.05	%	$	1,052	0.10	%
Total	$	544	n/m	%	$	1,052	n/m	%

n/m – Represents less than 0.01% of total class of financing receivable.

(1)	The amortized cost basis reflects all partial paydowns and charge-offs since the modification date and do not include loans modified to borrowers experiencing financial difficulty that have been fully paid off, charged off, or foreclosed upon by the end of the period.

Term Extension

Three Months Ended

Six Months Ended

June 30, 2026

Amortized

% of Total Class

Amortized

% of Total Class

(dollars in thousands)

Cost Basis⁽¹⁾

of Financing Receivable

Cost Basis⁽¹⁾

of Financing Receivable

Commercial and industrial

n/m

238

0.01

Residential mortgage

—

253

n/m

Consumer

n/m

141

0.01

Total

145

n/m

632

n/m

n/m – Represents less than 0.01% of total class of financing receivable.

(1)	The amortized cost basis reflects all partial paydowns and charge-offs since the modification date and do not include loans modified to borrowers experiencing financial difficulty that have been fully paid off, charged off, or foreclosed upon by the end of the period.


	Term Extension
		Three Months Ended				Six Months Ended
		June 30, 2025				June 30, 2025
		Amortized	% of Total Class			Amortized	% of Total Class
(dollars in thousands)		Cost Basis⁽¹⁾	of Financing Receivable			Cost Basis⁽¹⁾	of Financing Receivable
Commercial and industrial	$	731	0.03	%	$	9,620	0.41	%
Commercial real estate		940	0.02			1,138	0.03
Construction		904	0.10			904	0.10
Residential mortgage		714	0.02			714	0.02
Consumer		500	0.05			579	0.06
Total	$	3,789	0.03	%	$	12,955	0.09	%

(1)	The amortized cost basis reflects all partial paydowns and charge-offs since the modification date and do not include loans modified to borrowers experiencing financial difficulty that have been fully paid off, charged off, or foreclosed upon by the end of the period.


	Other-Than-Insignificant Payment Delay
		Three Months Ended				Six Months Ended
		June 30, 2025				June 30, 2025
		Amortized	% of Total Class			Amortized	% of Total Class
(dollars in thousands)		Cost Basis⁽¹⁾	of Financing Receivable			Cost Basis⁽¹⁾	of Financing Receivable
Commercial real estate	$	—	—	%	$	1,005	0.02	%
Residential mortgage		1,184	0.03			1,184	0.03
Total	$	1,184	n/m	%	$	2,189	0.02	%

n/m – Represents less than 0.01% of total class of financing receivable.

(1)	The amortized cost basis reflects all partial paydowns and charge-offs since the modification date and do not include loans modified to borrowers experiencing financial difficulty that have been fully paid off, charged off, or foreclosed upon by the end of the period.

There were no loan modifications to borrowers experiencing financial difficulty for which the Company had modified the terms of the loans in the form of an other-than-insignificant payment delay during both the three and six months ended June 30, 2026.

The following tables describe, by class of financing receivable and type of modification granted, the financial effect of the modifications made to borrowers experiencing financial difficulty during the three and six months ended June 30, 2026 and 2025, respectively:


	Interest Rate Reduction
	Financial Effect
	Three Months Ended June 30, 2026	Six Months Ended June 30, 2026
Consumer	Reduced weighted-average contractual interest rate by 13.52%.	Reduced weighted-average contractual interest rate by 13.57%.


	Interest Rate Reduction
	Financial Effect
	Three Months Ended June 30, 2025	Six Months Ended June 30, 2025
Consumer	Reduced weighted-average contractual interest rate by 12.98%.	Reduced weighted-average contractual interest rate by 13.04%.


	Term Extension
	Financial Effect
	Three Months Ended June 30, 2026	Six Months Ended June 30, 2026
Commercial and industrial	Added a weighted-average 4.9 years to the life of loans.	Added a weighted-average 4.9 years to the life of loans.
Residential mortgage	—	Added a weighted-average 2.0 years to the life of loans.
Consumer	Added a weighted-average 4.8 years to the life of loans.	Added a weighted-average 4.9 years to the life of loans.


	Term Extension
	Financial Effect
	Three Months Ended June 30, 2025	Six Months Ended June 30, 2025
Commercial and industrial	Added a weighted-average 2.0 years to the life of loans.	Added a weighted-average 0.6 years to the life of loans.
Commercial real estate	Added a weighted-average 0.2 years to the life of loans.	Added a weighted-average 0.3 years to the life of loans.
Construction	Added a weighted-average 0.2 years to the life of loans.	Added a weighted-average 0.2 years to the life of loans.
Residential mortgage	Added a weighted-average 0.3 years to the life of loans.	Added a weighted-average 0.3 years to the life of loans.
Consumer	Added a weighted-average 0.1 years to the life of loans.	Added a weighted-average 0.7 years to the life of loans.


	Other-Than-Insignificant Payment Delay
	Financial Effect
	Three Months Ended June 30, 2025	Six Months Ended June 30, 2025
Commercial real estate	—	Deferred a weighted-average of $209 thousand in loan payments.
Residential mortgage	Deferred a weighted-average of $65 thousand in loan payments.	Deferred a weighted-average of $65 thousand in loan payments.

The following tables present, by class of financing receivable and type of modification granted, the amortized cost basis, as of June 30, 2026 and 2025, of loans that had a payment default during the three and six months ended June 30, 2026 and 2025, respectively, and were modified in the 12 months before default to borrowers experiencing financial difficulty. The Company is reporting these defaulted loans based on a payment default definition of 30 days past due:

Amortized Cost Basis of Modified Loans That Subsequently Defaulted⁽¹⁾

Three Months Ended June 30, 2026

Six Months Ended June 30, 2026

(dollars in thousands)

Interest Rate Reduction

Term Extension

Other-Than-Insignificant Payment Delay

Interest Rate Reduction

Term Extension

Other-Than-Insignificant Payment Delay

Commercial and industrial

—

570

—

594

—

Residential mortgage

—

253

—

Consumer

238

—

347

—

Total

238

570

—

347

847

—

(1)	The amortized cost basis reflects all partial paydowns and charge-offs since the modification date and do not include loans modified to borrowers experiencing financial difficulty that have been fully paid off, charged off, or foreclosed upon by the end of the period.


	Amortized Cost Basis of Modified Loans That Subsequently Defaulted⁽¹⁾
	Three Months Ended June 30, 2025						Six Months Ended June 30, 2025
(dollars in thousands)	Interest Rate Reduction		Term Extension			Other-Than-Insignificant Payment Delay	Interest Rate Reduction		Term Extension		Other-Than-Insignificant Payment Delay
Commercial and industrial	$	—	$	57	$	—	$	—	$	128	$	—
Construction		—		904		—		—		904		—
Residential mortgage		—		299		549		—		608		549
Home equity line		—		—		—		—		—		—
Consumer		410		4		—		501		20		—
Total	$	410	$	1,264	$	549	$	501	$	1,660	$	549

(1)	The amortized cost basis reflects all partial paydowns and charge-offs since the modification date and do not include loans modified to borrowers experiencing financial difficulty that have been fully paid off, charged off, or foreclosed upon by the end of the period.

Performance of the loans that are modified to borrowers experiencing financial difficulty is monitored to understand the effectiveness of the Company’s modification efforts. As of June 30, 2026 and 2025, the aging analysis of the amortized cost basis of the performance of loans that have been modified in the last 12 months related to borrowers experiencing financial difficulty was as follows:


		June 30, 2026
		Past Due
						Greater Than
						or Equal to
		30-59 Days		60-89 Days		90 Days		Total
(dollars in thousands)		Past Due		Past Due		Past Due		Past Due		Current		Total
Commercial and industrial	$	86	$	—	$	—	$	86	$	414	$	500
Residential mortgage		—		—		—		—		1,600		1,600
Consumer		122		47		42		211		1,321		1,532
Total	$	208	$	47	$	42	$	297	$	3,335	$	3,632


		June 30, 2025
		Past Due
						Greater Than
						or Equal to
		30-59 Days		60-89 Days		90 Days		Total
(dollars in thousands)		Past Due		Past Due		Past Due		Past Due		Current		Total
Commercial and industrial	$	—	$	—	$	16	$	16	$	9,759	$	9,775
Commercial real estate		—		—		—		—		2,143		2,143
Construction		—		904		—		904		—		904
Residential mortgage		549		299		—		848		2,058		2,906
Consumer		158		34		80		272		1,935		2,207
Total	$	707	$	1,237	$	96	$	2,040	$	15,895	$	17,935

The Company had commitments to extend credit, standby letters of credit, and commercial letters of credit totaling $6.8 billion and $6.9 billion as of June 30, 2026 and December 31, 2025, respectively. Of the $6.8 billion at June 30, 2026, there were no commitments to lend additional funds to borrowers experiencing financial difficulty for which the Company had modified the terms of the loans in the form of an interest rate reduction, term extension, or other-than-insignificant payment delay during the six months ended June 30, 2026. Of the $6.9 billion at December 31, 2025, there were no commitments to lend additional funds to borrowers experiencing financial difficulty for which the Company had modified the terms of the loans in the form of an interest rate reduction, term extension or other-than-insignificant payment delay during the year ended December 31, 2025.

Foreclosed Property

As of both June 30, 2026 and December 31, 2025, there were no residential real estate properties held from foreclosed residential mortgage loans.