LOANS AND LEASES

6 Months Ended

Jun. 30, 2026

Accrued interest receivable on loans and leases, which totaled $103.0 million at June 30, 2026 and $124.1 million at December 31, 2025, is excluded from the estimate of credit losses and assessed separately in other assets in the Consolidated Balance Sheets for both periods and is not included in the following tables.

Loans and Leases by Portfolio Segment

Following is a summary of total loans and leases, net of unearned income:

TABLE 4.1


(in millions)	June 30, 2026		December 31, 2025
Commercial real estate	$	12,035	$	12,274
Commercial and industrial	8,194		7,718
Commercial leases	802		791
Other	140		141
Total commercial loans and leases	21,171		20,924
Direct installment	2,654		2,678
Residential mortgages	9,471		8,882
Indirect installment	852		767
Consumer lines of credit	1,621		1,526
Total consumer loans	14,598		13,853
Total loans and leases, net of unearned income	$	35,769	$	34,777

The remaining accretable discount included in the amortized cost of acquired loans was $17.9 million and $21.2 million at June 30, 2026 and December 31, 2025, respectively.

The loans and leases portfolio categories are comprised of the following types of loans, where in each case the LGD is dependent on the nature and value of the respective collateral:

•Commercial real estate includes both owner-occupied and non-owner-occupied loans, including construction loans, secured by commercial properties where operational cash flows on owner-occupied properties, including rents paid by stand-alone business customers, or rents received by our borrowers from their tenant(s) on both a property and global basis are the primary default risk drivers;

•Commercial and industrial includes loans to businesses that are not secured by real estate where the borrower's leverage and cash flows from operations are the primary default risk drivers;

•Commercial leases consist of leases for new or used equipment where the borrower's cash flow from operations is the primary default risk driver;

•Other is comprised primarily of credit cards and mezzanine loans where the borrower's cash flow from operations is the primary default risk driver;

•Direct installment is comprised of fixed-rate, closed-end consumer loans for personal, family or household use, such as home equity loans and automobile loans where the primary default risk driver is the borrower's employment status and income;

•Residential mortgages consist of conventional and jumbo mortgage loans, including construction loans, for 1-4 family properties where the primary default risk driver is the borrower's employment status and income;

•Indirect installment is comprised of loans originated by approved third parties and underwritten by us, primarily automobile loans where the primary default risk driver is the borrower's employment status and income; and

•Consumer lines of credit include home equity lines of credit and consumer lines of credit that are either unsecured or secured by collateral other than home equity where the primary default risk driver is the borrower's employment status and income.

The loans and leases portfolio consists principally of loans to individuals and small- and medium-sized businesses within our primary market in seven states and the District of Columbia. Our primary market coverage spans several major metropolitan areas including: Pittsburgh, Pennsylvania; Baltimore, Maryland; Cleveland, Ohio; Washington, D.C.; Charlotte, Raleigh, Durham and the Piedmont Triad (Winston-Salem, Greensboro and High Point) in North Carolina; and Charleston, South Carolina.

The following table shows occupancy information relating to commercial real estate loans:

TABLE 4.2


	June 30, 2026		December 31, 2025
Commercial real estate:
Percent owner-occupied	32.1	%	30.9	%
Percent non-owner-occupied	67.9		69.1

Credit Quality

We monitor the credit quality of our loan portfolio using several performance measures based on payment activity and borrower performance. We use an internal risk rating assigned to a commercial loan or lease at origination, summarized below.

TABLE 4.3


Rating Category			Definition
Pass			in general, the condition of the borrower and the performance of the loan is satisfactory or better

Special Mention			in general, the condition of the borrower has deteriorated, requiring an increased level of monitoring

Substandard			in general, the condition of the borrower has significantly deteriorated and the performance of the loan could further deteriorate if deficiencies are not corrected

Doubtful			in general, the condition of the borrower has significantly deteriorated and the collection in full of both principal and interest is highly questionable or improbable

The use of these internally assigned credit quality categories within the commercial loan and lease portfolio permits our use of transition matrices to establish a basis which is then impacted by quantitative inputs from our econometric model forecasts over the R&S period. Our internal credit risk grading system is based on past experiences with similarly graded loans and leases and conforms to regulatory categories. In general, loan and lease risk ratings within each category are reviewed on an ongoing basis according to our policy for each class of loans and leases. Each quarter, we analyze the resulting ratings, as well as other external statistics and factors such as delinquency, to track the migration performance of the commercial loan and lease portfolio. Loans and leases within the Pass credit category or that migrate toward the Pass credit category generally have a lower risk of loss compared to loans and leases that migrate toward the Substandard or Doubtful credit categories. Accordingly, we apply higher risk factors to Substandard and Doubtful credit categories.

The following table summarizes the designated loan rating category by loan class including term loans on an amortized cost basis by origination year and year-to-date gross charge-offs by originating year:

TABLE 4.4


(in millions)	2026		2025		2024		2023		2022		Prior		Revolving Loans Amortized Cost Basis		Total
June 30, 2026
COMMERCIAL
Commercial Real Estate:
Risk Rating:
Pass	$	744	$	1,398	$	1,296	$	1,425	$	1,369	$	4,776	$	209	$	11,217
Special Mention	—		6		30		26		145		215		6		428
Substandard	—		2		14		63		69		235		7		390

Total commercial real estate	744		1,406		1,340		1,514		1,583		5,226		222		12,035
Commercial real estate gross charge-offs	—		—		0.5		—		1.0		12.0		—		13.5
Commercial and Industrial:
Risk Rating:
Pass	1,346		1,611		842		633		498		991		1,807		7,728
Special Mention	4		13		12		6		3		47		184		269
Substandard	2		6		17		39		9		47		77		197

Total commercial and industrial	1,352		1,630		871		678		510		1,085		2,068		8,194
Commercial and industrial gross charge-offs	—		0.4		0.4		9.9		0.4		8.8		—		19.9
Commercial Leases:
Risk Rating:
Pass	200		165		199		111		63		48		—		786
Special Mention	1		—		3		1		—		1		—		6
Substandard	—		—		2		6		1		1		—		10

Total commercial leases	201		165		204		118		64		50		—		802
Commercial leases gross charge-offs	—		—		—		—		—		2.0		—		2.0
Other Commercial:
Risk Rating:
Pass	9		—		—		66		—		3		62		140



Total other commercial	9		—		—		66		—		3		62		140
Other commercial gross charge-offs	—		—		—		—		—		2.3		—		2.3
Total commercial loans and leases	2,306		3,201		2,415		2,376		2,157		6,364		2,352		21,171


(in millions)	2026		2025		2024		2023		2022		Prior		Revolving Loans Amortized Cost Basis		Total
June 30, 2026
CONSUMER
Direct Installment:
Current	220		404		236		189		498		1,095		—		2,642
Past due	1		1		1		1		2		6		—		12
Total direct installment	221		405		237		190		500		1,101		—		2,654
Direct installment gross charge-offs	—		0.1		0.1		0.1		—		0.1		—		0.4
Residential Mortgages:
Current	1,091		1,752		1,278		1,125		1,404		2,759		—		9,409
Past due	1		10		10		6		8		27		—		62
Total residential mortgages	1,092		1,762		1,288		1,131		1,412		2,786		—		9,471
Residential mortgages gross charge-offs	—		0.2		0.3		0.4		0.1		0.6		—		1.6
Indirect Installment:
Current	241		265		217		13		31		73		—		840
Past due	—		1		2		2		4		3		—		12
Total indirect installment	241		266		219		15		35		76		—		852
Indirect installment gross charge-offs	—		0.7		0.7		0.1		0.6		0.8		—		2.9
Consumer Lines of Credit:
Current	1		4		5		17		36		156		1,392		1,611
Past due	—		—		—		—		1		7		2		10
Total consumer lines of credit	1		4		5		17		37		163		1,394		1,621
Consumer lines of credit gross charge-offs	—		—		—		—		0.1		0.3		—		0.4
Total consumer loans	1,555		2,437		1,749		1,353		1,984		4,126		1,394		14,598
Total loans and leases	$	3,861	$	5,638	$	4,164	$	3,729	$	4,141	$	10,490	$	3,746	$	35,769
Total charge-offs	$	—	$	1.4	$	2.0	$	10.5	$	2.2	$	26.9	$	—	$	43.0


(in millions)	2025		2024		2023		2022		2021		Prior		Revolving Loans Amortized Cost Basis		Total
December 31, 2025
COMMERCIAL
Commercial Real Estate:
Risk Rating:
Pass	$	1,438	$	1,336	$	1,654	$	1,587	$	1,686	$	3,637	$	195	$	11,533
Special Mention	5		17		18		135		94		147		6		422
Substandard	1		11		10		59		37		195		6		319

Total commercial real estate	1,444		1,364		1,682		1,781		1,817		3,979		207		12,274
Commercial real estate gross charge-offs	—		—		0.4		5.4		3.9		20.3		—		30.0
Commercial and Industrial:
Risk Rating:
Pass	1,799		1,011		787		616		360		835		1,835		7,243
Special Mention	35		11		12		5		3		72		148		286
Substandard	2		14		45		11		7		22		88		189

Total commercial and industrial	1,836		1,036		844		632		370		929		2,071		7,718
Commercial and industrial gross charge-offs	0.1		1.5		1.0		3.5		7.0		24.8		—		37.9
Commercial Leases:
Risk Rating:
Pass	262		222		140		73		41		37		—		775
Special Mention	1		3		1		—		1		3		—		9
Substandard	—		—		4		1		2		—		—		7

Total commercial leases	263		225		145		74		44		40		—		791
Commercial leases gross charge-offs	—		—		—		—		—		0.2		—		0.2
Other Commercial:
Risk Rating:
Pass	9		—		58		—		—		4		70		141



Total other commercial	9		—		58		—		—		4		70		141
Other commercial gross charge-offs	—		—		—		—		—		4.7		—		4.7
Total commercial loans and leases	3,552		2,625		2,729		2,487		2,231		4,952		2,348		20,924


(in millions)	2025		2024		2023		2022		2021		Prior		Revolving Loans Amortized Cost Basis		Total
December 31, 2025
CONSUMER
Direct Installment:
Current	446		273		218		535		592		601		—		2,665
Past due	—		1		1		3		2		6		—		13
Total direct installment	446		274		219		538		594		607		—		2,678
Direct installment gross charge-offs	0.1		0.2		0.2		0.2		—		0.2		—		0.9
Residential Mortgages:
Current	1,741		1,464		1,245		1,468		1,317		1,579		—		8,814
Past due	6		11		11		7		5		28		—		68
Total residential mortgages	1,747		1,475		1,256		1,475		1,322		1,607		—		8,882
Residential mortgages gross charge-offs	0.1		0.3		0.5		0.1		0.1		1.3		—		2.4
Indirect Installment:
Current	311		272		16		41		69		43		—		752
Past due	1		3		2		4		4		1		—		15
Total indirect installment	312		275		18		45		73		44		—		767
Indirect installment gross charge-offs	0.4		1.0		0.9		2.5		2.0		0.8		—		7.6
Consumer Lines of Credit:
Current	4		6		19		39		12		139		1,295		1,514
Past due	—		—		1		1		—		8		2		12
Total consumer lines of credit	4		6		20		40		12		147		1,297		1,526
Consumer lines of credit gross charge-offs	—		—		0.1		0.1		—		0.8		—		1.0
Total consumer loans	2,509		2,030		1,513		2,098		2,001		2,405		1,297		13,853
Total loans and leases	$	6,061	$	4,655	$	4,242	$	4,585	$	4,232	$	7,357	$	3,645	$	34,777
Total charge-offs	$	0.7	$	3.0	$	3.1	$	11.8	$	13.0	$	53.1	$	—	$	84.7

We use delinquency transition matrices within the consumer and other loan classes to establish the basis for the R&S forecast portion of the credit risk. Each month, management analyzes payment and volume activity, Fair Isaac Corporation (FICO) scores and Debt-to-Income (DTI) scores and other external factors, such as unemployment, to determine how consumer loans are performing.

Non-Performing and Past Due

The following table provides an analysis of the aging of loans by class.

TABLE 4.5


(in millions)	30-89 Days Past Due		> 90 Days Past Due and Still Accruing		Non- Accrual		Total Past Due		Current		Total Loans and Leases		Non-accrual with No ACL
June 30, 2026
Commercial real estate	$	17	$	—	$	55	$	72	$	11,963	$	12,035	$	45
Commercial and industrial	8		1		39		48		8,146		8,194		11
Commercial leases	—		—		2		2		800		802		—
Other	—		35		—		35		105		140		—
Total commercial loans and leases	25		36		96		157		21,014		21,171		56
Direct installment	8		1		3		12		2,642		2,654		—
Residential mortgages	43		12		7		62		9,409		9,471		1
Indirect installment	10		1		1		12		840		852		—
Consumer lines of credit	6		1		3		10		1,611		1,621		—
Total consumer loans	67		15		14		96		14,502		14,598		1
Total loans and leases	$	92	$	51	$	110	$	253	$	35,516	$	35,769	$	57


(in millions)	30-89 Days Past Due		> 90 Days Past Due and Still Accruing		Non- Accrual		Total Past Due		Current		Total Loans and Leases		Non-accrual with No ACL
December 31, 2025
Commercial real estate	$	10	$	—	$	45	$	55	$	12,219	$	12,274	$	18
Commercial and industrial	10		—		35		45		7,673		7,718		15
Commercial leases	—		—		3		3		788		791		—
Other	34		1		2		37		104		141		—
Total commercial loans and leases	54		1		85		140		20,784		20,924		33
Direct installment	8		1		4		13		2,665		2,678		—
Residential mortgages	47		9		12		68		8,814		8,882		1
Indirect installment	14		—		1		15		752		767		—
Consumer lines of credit	7		2		3		12		1,514		1,526		—
Total consumer loans	76		12		20		108		13,745		13,853		1
Total loans and leases	$	130	$	13	$	105	$	248	$	34,529	$	34,777	$	34

Following is a summary of non-performing assets:

TABLE 4.6


(dollars in millions)	June 30, 2026			December 31, 2025
Non-accrual loans	$	110		$	105
Total non-performing loans and leases	110			105
Other real estate owned	2			3
Total non-performing assets	$	112		$	108
Asset quality ratios:
Non-performing loans and leases / total loans and leases	0.31		%	0.30		%
Non-performing assets plus 90 days or more past due / total loans and leases plus OREO	0.46			0.35

The carrying value of residential-secured consumer OREO held as a result of obtaining physical possession upon completion of a foreclosure or through completion of a deed in lieu of foreclosure amounted to $1.6 million at June 30, 2026 and $1.1 million at December 31, 2025. The recorded investment of residential-secured consumer OREO for which formal foreclosure proceedings are in process at June 30, 2026 and December 31, 2025 totaled $25.4 million and $16.9 million, respectively.

Approximately $152.4 million of commercial loans are collateral dependent at June 30, 2026. Repayment is expected to be substantially made through the operation or sale of the collateral on the loan. These loans are primarily secured by business assets or commercial real estate.

Loan Modifications

During the period, there are loans whose contractual terms have been modified in a manner that grants a concession to a borrower experiencing financial difficulties. These modifications typically result from loss mitigation activities and could include a term extension, interest rate reduction, principal forgiveness and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of collateral. Accrued interest receivable on loan modifications totaled $0.38 million and $0.04 million at June 30, 2026 and June 30, 2025, respectively, and is excluded from the amortized cost of loan modifications in the tables that follow.

The following table shows the amortized cost basis at the end of the reporting period of the loans modified during the period to borrowers experiencing financial difficulty, disaggregated by class of financing receivable, type of concession granted and the financial effect of the modifications made to borrowers experiencing financial difficulty:

TABLE 4.7


(dollars in millions)	Amortized Cost Basis		% of Total Class of Financing Receivable		Financial Effect

Three Months Ended June 30, 2026
Term Extension
Commercial real estate	$	0.1	—	%	Modifications were made with no material financial effect.
Commercial and industrial	0.2		—		Modifications were made with no material financial effect.


Direct installment	0.6		0.02		The modified loans had an average increase in term of 17 months extending the maturity date.
Residential mortgages	1.2		0.01		The modified loans had an average increase in term of 50 months extending the maturity date.

Consumer lines of credit	0.1		0.01		Modifications were made with no material financial effect.
Total	2.2




















Term Extension and Rate Reduction
Commercial real estate	11.8		0.10		The modified loan had an increase in term of 15 months, extending the maturity date, with a weighted average yield reduction of 300 basis points, and other collateral terms.



Direct installment	0.1		—		The loan modification was made with no material financial effect.
Residential mortgages	0.9		0.01		The modified loans had an increase in term of 53 months, extending the maturity date, with a weighted average yield reduction of 293 basis points.


Total	12.8








































Other
Commercial real estate	3.0		0.02		The majority resulted in a 3-month deferral on principal payments.
Commercial and industrial	1.6		0.02		The majority resulted in a 3-month deferral on principal payments.






Total	4.6
Total Outstanding Modified	$	19.6


(dollars in millions)	Amortized Cost Basis		% of Total Class of Financing Receivable		Financial Effect
Six Months Ended June 30, 2026
Term Extension
Commercial real estate	$	17.0	0.14	%	The modified loans had an average increase in term of 13 months, extending the maturity date.
Commercial and industrial	0.3		—		Modifications were made with no material financial effect.


Direct installment	0.7		0.03		The modified loans had an average increase in term of 17 months, extending the maturity date.
Residential mortgages	3.1		0.03		The modified loans had an average increase in term of 42 months, extending the maturity date.

Consumer lines of credit	0.1		0.01		Modifications were made with no material financial effect.
Total	21.2




















Term Extension and Rate Reduction
Commercial real estate	11.8		0.10		The modified loan had an increase in term of 15 months, extending the maturity date, with a weighted average yield reduction of 300 basis points, and other collateral terms.



Direct installment	0.1		—		A modification was made with no material financial effect.
Residential mortgages	1.0		0.01		The modified loans had an increase in term of 78 months, extending the maturity date, with a weighted average yield reduction of 256 basis points.


Total	12.9








































Other
Commercial real estate	3.0		0.02		The majority resulted in a 3-month deferral on principal payments.
Commercial and industrial	4.1		0.05		The majority resulted in a 3-month deferral on principal payments.





Consumer lines of credit	0.3		0.02		Modifications were made with no material financial effect.
Total	7.4
Total Outstanding Modified	$	41.5


(dollars in millions)	Amortized Cost Basis		% of Total Class of Financing Receivable		Financial Effect
Three Months Ended June 30, 2025
Term Extension

Commercial and industrial	$	0.8	0.01	%	The modified loans had an average increase in term of 29 months, extending the maturity date.


Direct installment	1.0		0.04		The modified loans had an average increase in term of 26 months, extending the maturity date.
Residential mortgages	0.8		0.01		The modified loans had an average increase in term of 26 months, extending the maturity date.

Consumer lines of credit	0.3		0.02		Modifications were made with no material financial effect.
Total	2.9






































































Other
Commercial real estate	1.3		0.01		The majority resulted in a 3-month deferral on principal payments.
Commercial and industrial	0.9		0.01		The majority resulted in a 3-month deferral on principal payments.






Total	2.2
Total Outstanding Modified	$	5.1

Six Months Ended June 30, 2025
Term Extension
Commercial real estate	$	1.5	0.01	%	The modified loans had an average increase in term of 2 months, extending the maturity date.
Commercial and industrial	0.8		0.01		The modified loans had an average increase in term of 29 months, extending the maturity date.


Direct installment	1.5		0.06		The modified loans had an average increase in term of 21 months, extending the maturity date.
Residential mortgages	2.9		0.03		The modified loans had an average increase in term of 27 months, extending the maturity date.

Consumer lines of credit	0.4		0.03		The modified loans had an average increase in term of 181 months, extending the maturity date.
Total	7.1




















Term Extension and Rate Reduction





Residential mortgages	1.3		0.02		The term was extended, with a weighted average yield reduction of 100 basis points to 450 basis points with extensions up to 27 years.


Total	1.3








































Other
Commercial real estate	1.3		0.01		The majority resulted in a 3-month deferral on principal payments.
Commercial and industrial	1.0		0.01		The majority resulted in a 3-month deferral on principal payments.






Total	2.3
Total Outstanding Modified	$	10.7

Some loan modifications may not ultimately result in the full collection of principal and interest, as modified, and may result in potential incremental losses which are factored into the ACL. There were no additional funds committed to borrowers whose loans were modified during the first six months of 2026.

Commercial loans over $1.0 million whose terms have been modified may be placed on non-accrual, individually analyzed and measured based on the fair value of the underlying collateral. Our ACL includes specific reserves for commercial loans modified. There was $2.7 million in specific reserves for commercial loans modified at June 30, 2026 and no specific reserves for commercial loans at December 31, 2025 and pooled reserves for individual loans of $0.5 million and $0.6 million at those same respective dates, based on loan segment LGD. Upon default, the amount of the recorded investment of the modified loan balance in excess of the fair value of the collateral, less estimated selling costs, is generally considered a confirmed loss and is charged-off against the ACL.

All other classes of loans whose terms have been modified are pooled and measured based on the loan segment LGD. Our ACL included pooled reserves for these classes of loans of $1.4 million and $1.3 million as of June 30, 2026 and December 31, 2025, respectively. Upon default of an individual loan, our charge-off policy is followed for that class of loan.

Following is a summary of loans modified in a manner that grants a concession to a borrower experiencing financial difficulties, by class, for which there was a payment default, excluding loans that have been paid off and/or sold. Default occurs when a loan is 90 days or more past due or in non-accrual and is within 12 months of restructuring.

TABLE 4.8


Amortized cost basis of modified financing receivables that subsequently defaulted:
(in millions)	Term Extension		Term Extension and Rate Reduction		Other		Total Outstanding Modified
Three Months Ended June 30, 2026
Commercial real estate	$	—	$	11.8	$	0.5	$	12.3
Commercial and industrial	0.2		—		—		0.2


Total commercial loans and leases	0.2		11.8		0.5		12.5
Direct installment	0.1		—		—		0.1
Residential mortgages	1.7		0.4		—		2.1


Total consumer loans	1.8		0.4		—		2.2
Total	$	2.0	$	12.2	$	0.5	$	14.7

Six Months Ended June 30, 2026
Commercial real estate	$	0.2	$	11.8	$	1.5	$	13.5
Commercial and industrial	1.0		—		0.3		1.3


Total commercial loans and leases	1.2		11.8		1.8		14.8
Direct installment	0.3		—		—		0.3
Residential mortgages	3.4		1.8		—		5.2


Total consumer loans	3.7		1.8		—		5.5
Total	$	4.9	$	13.6	$	1.8	$	20.3


(in millions)	Term Extension		Term Extension and Rate Reduction		Other		Total Outstanding Modified
Three Months Ended June 30, 2025








Consumer lines of credit	$	0.1	$	—	$	—	$	0.1
Total consumer loans	0.1		—		—		0.1
Total	$	0.1	$	—	$	—	$	0.1

Six Months Ended June 30, 2025
Commercial real estate	$	0.6	$	—	$	1.7	$	2.3
Commercial and industrial	0.2		3.0		3.3		6.5


Total commercial loans and leases	0.8		3.0		5.0		8.8
Direct installment	0.2		—		—		0.2
Residential mortgages	2.0		0.8		—		2.8

Consumer lines of credit	0.1		—		—		0.1
Total consumer loans	2.3		0.8		—		3.1
Total	$	3.1	$	3.8	$	5.0	$	11.9

We closely monitor the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of our modification efforts. The following table depicts the performance of loans that have been modified in the last 12 months:

TABLE 4.9


Payment status - amortization cost basis:
(in millions)	Current		30-89 Days Past Due		90+ Days Past Due
June 30, 2026
Commercial real estate	$	32.9	$	0.2	$	0.4
Commercial and industrial	7.9		—		0.2


Total commercial loans and leases	40.8		0.2		0.6
Direct installment	1.8		0.5		—
Residential mortgages	5.3		2.5		1.9

Consumer lines of credit	0.5		—		—
Total consumer loans	7.6		3.0		1.9
Total	$	48.4	$	3.2	$	2.5

(in millions)	Current		30-89 Days Past Due		90+ Days Past Due
June 30, 2025
Commercial real estate	$	20.6	$	—	$	—
Commercial and industrial	7.2		—		—


Total commercial loans and leases	27.8		—		—
Direct installment	1.7		0.4		—
Residential mortgages	6.1		0.7		0.2

Consumer lines of credit	0.9		0.1		0.1
Total consumer loans	8.7		1.2		0.3
Total	$	36.5	$	1.2	$	0.3