ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY INFORMATION

6 Months Ended

Jun. 30, 2026

ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY INFORMATION

6. ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY INFORMATION

The following tables provide the activity of the total allowance for credit losses for the three and six months ended June 30, 2026 and 2025:


	Three months ended June 30, 2026								Six months ended June 30, 2026
(Dollars in thousands)	Loans and Leases		HTM Securities(1)		Other Accounts Receivable		Total		Loans and Leases		HTM Securities(1)		Other Accounts Receivable		Total
Allowance for credit losses
Beginning balance	$	180,011	$	5	$	2,860	$	182,876	$	179,647	$	5	$	2,848	$	182,500

Charge-offs	(9,284)		—		(1,182)		(10,466)		(23,651)		—		(3,027)		(26,678)



Recoveries	2,172		—		409		2,581		19,996		—		1,171		21,167

Provision	4,364		—		680		5,044		1,271		—		1,775		3,046
Ending balance	$	177,263	$	5	$	2,767	$	180,035	$	177,263	$	5	$	2,767	$	180,035

	Three months ended June 30, 2025								Six months ended June 30, 2025
(Dollars in thousands)	Loans and Leases		HTM Securities(1)		Other Accounts Receivable		Total		Loans and Leases		HTM Securities(1)		Other Accounts Receivable		Total
Allowance for credit losses
Beginning balance	$	187,515	$	6	$	567	$	188,088	$	195,281	$	7	$	—	$	195,288

Charge-offs	(8,566)		—		(1,821)		(10,387)		(35,667)		—		(1,821)		(37,488)
Recoveries	7,454		—		—		7,454		10,005		—		—		10,005
Charge-offs from transfer of loans to held for sale	(8,655)		—		—		(8,655)		(8,655)		—		—		(8,655)
Provision (release)	8,556		—		4,065		12,621		25,340		(1)		4,632		29,971
Ending balance	$	186,304	$	6	$	2,811	$	189,121	$	186,304	$	6	$	2,811	$	189,121

(1)See Note 4 for further detail on the HTM securities allowance.

Allowance for Credit Losses Related to Loans and Leases

The following tables provide the activity of allowance for credit losses and loan balances for our loan and lease portfolio for the three and six months ended June 30, 2026 and 2025. For the three and six months ended June 30, 2026, the decrease was primarily due to the previously disclosed recovery on loans charged-off in the first quarter of 2025 and the release of the allowance for credit losses on the credit card portfolio due to the sale.


(Dollars in thousands)	Commercial and Industrial		Owner-occupied Commercial		Commercial Mortgages		Construction		Commercial Small Business Leases		Residential(1)		Consumer(2)		Total
Three months ended June 30, 2026
Allowance for credit losses
Beginning balance	$	51,312	$	8,168	$	48,816	$	13,870	$	15,840	$	7,330	$	34,675	$	180,011

Charge-offs	(3,658)		—		(1,740)		—		(2,417)		—		(1,469)		(9,284)
Recoveries	334		1		532		—		724		49		532		2,172

Provision (release)	3,895		548		1,843		(329)		3,277		(1,119)		(3,751)		4,364
Ending balance	$	51,883	$	8,717	$	49,451	$	13,541	$	17,424	$	6,260	$	29,987	$	177,263
Six months ended June 30, 2026
Allowance for credit losses
Beginning balance	$	52,927	$	7,626	$	48,047	$	13,264	$	16,449	$	6,764	$	34,570	$	179,647

Charge-offs	(9,406)		(298)		(1,740)		(3,735)		(5,337)		—		(3,135)		(23,651)
Recoveries	16,637		12		534		—		1,570		94		1,149		19,996

(Release) provision	(8,275)		1,377		2,610		4,012		4,742		(598)		(2,597)		1,271
Ending balance	$	51,883	$	8,717	$	49,451	$	13,541	$	17,424	$	6,260	$	29,987	$	177,263
Period-end allowance allocated to:
Loans evaluated on an individual basis	$	—	$	—	$	—	$	2,035	$	—	$	—	$	—	$	2,035
Loans evaluated on a collective basis	51,883		8,717		49,451		11,506		17,424		6,260		29,987		175,228
Ending balance	$	51,883	$	8,717	$	49,451	$	13,541	$	17,424	$	6,260	$	29,987	$	177,263
Period-end loan balances:
Loans evaluated on an individual basis	$	19,847	$	20,513	$	11,522	$	7,939	$	—	$	7,056	$	3,602	$	70,479
Loans evaluated on a collective basis	2,993,868		1,909,854		3,872,327		995,060		584,175		1,225,718		1,811,636		13,392,638
Ending balance	$	3,013,715	$	1,930,367	$	3,883,849	$	1,002,999	$	584,175	$	1,232,774	$	1,815,238	$	13,463,117

(1)Period-end loan balance excludes reverse mortgages at fair value of $4.0 million.

(2)Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans.


(Dollars in thousands)	Commercial and Industrial		Owner - occupied Commercial		Commercial Mortgages		Construction		Commercial Small Business Leases		Residential(1)		Consumer(2)		Total
Three months ended June 30, 2025
Allowance for credit losses
Beginning balance	$	50,736	$	8,410	$	49,792	$	9,691	$	17,109	$	5,697	$	46,080	$	187,515

Charge-offs	(1,280)		—		(197)		—		(4,376)		—		(2,713)		(8,566)
Recoveries	1,865		5		2		—		714		50		4,818		7,454
Charge-offs arising from transfer of loans to held for sale	(552)		—		—		—		—		—		(8,103)		(8,655)
Provision (release)	1,352		169		5,178		1,005		4,854		68		(4,070)		8,556
Ending balance	$	52,121	$	8,584	$	54,775	$	10,696	$	18,301	$	5,815	$	36,012	$	186,304
Six months ended June 30, 2025
Allowance for loan losses
Beginning balance	$	57,131	$	9,139	$	48,962	$	9,185	$	15,965	$	5,566	$	49,333	$	195,281

Charge-offs	(21,151)		—		(197)		—		(7,343)		—		(6,976)		(35,667)
Recoveries	2,444		12		527		—		1,333		97		5,592		10,005
Charge-offs arising from transfer of loans to held for sale	(552)		—		—		—		—		—		(8,103)		(8,655)
Provision (release)	14,249		(567)		5,483		1,511		8,346		152		(3,834)		25,340
Ending balance	$	52,121	$	8,584	$	54,775	$	10,696	$	18,301	$	5,815	$	36,012	$	186,304
Period-end allowance allocated to:
Loans evaluated on an individual basis	$	—	$	—	$	5,125	$	1,169	$	—	$	—	$	—	$	6,294
Loans evaluated on a collective basis	52,121		8,584		49,650		9,527		18,301		5,815		36,012		180,010
Ending balance	$	52,121	$	8,584	$	54,775	$	10,696	$	18,301	$	5,815	$	36,012	$	186,304
Period-end loan balances:
Loans evaluated on an individual basis	$	27,551	$	6,311	$	24,115	$	28,505	$	—	$	7,665	$	3,456	$	97,603
Loans evaluated on a collective basis	2,716,841		1,941,283		3,887,422		829,126		630,127		968,797		1,918,347		12,891,943
Ending balance	$	2,744,392	$	1,947,594	$	3,911,537	$	857,631	$	630,127	$	976,462	$	1,921,803	$	12,989,546

(1)Period-end loan balance excludes reverse mortgages at fair value of $4.7 million.

(2)Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans.

The following tables show nonaccrual and past due loans presented at amortized cost at the date indicated:


	June 30, 2026
(Dollars in thousands)	30–89 Days Past Due and Still Accruing			Greater Than 90 Days Past Due and Still Accruing			Total Past Due And Still Accruing			Accruing Current Balances			Nonaccrual Loans With No Allowance			Nonaccrual Loans With An Allowance			Total Loans
Commercial and industrial	$	4,967		$	282		$	5,249		$	2,988,619		$	19,847		$	—		$	3,013,715
Owner-occupied commercial	3,118			1			3,119			1,906,905			20,343			—			1,930,367
Commercial mortgages	2,412			212			2,624			3,869,703			11,522			—			3,883,849
Construction	67			—			67			994,993			2,504			5,435			1,002,999
Commercial small business leases	6,726			11			6,737			577,438			—			—			584,175
Residential(1)	3,077			—			3,077			1,224,583			5,114			—			1,232,774
Consumer(2)	8,251			7,606			15,857			1,795,875			3,506			—			1,815,238
Total	$	28,618		$	8,112		$	36,730		$	13,358,116		$	62,836		$	5,435		$	13,463,117
% of Total Loans	0.21		%	0.06		%	0.27		%	99.22		%	0.47		%	0.04		%	100		%

(1)Residential accruing current balances excludes reverse mortgages at fair value of $4.0 million.

(2)Includes $11.2 million of delinquent, but still accruing, U.S. government-guaranteed student loans that carry little risk of credit loss.


	December 31, 2025
(Dollars in thousands)	30–89 Days Past Due and Still Accruing			Greater Than 90 Days Past Due and Still Accruing			Total Past Due And Still Accruing			Accruing Current Balances			Nonaccrual Loans With No Allowance			Nonaccrual Loans With An Allowance			Total Loans
Commercial and industrial	$	4,634		$	2,062		$	6,696		$	2,762,898		$	16,842		$	10,218		$	2,796,654
Owner-occupied commercial	7,152			50			7,202			1,923,556			6,581			—			1,937,339
Commercial mortgages	44,139			9,533			53,672			3,854,922			7,565			—			3,916,159
Construction	1,716			—			1,716			999,814			16,946			5,435			1,023,911
Commercial small business leases	6,536			592			7,128			596,193			—			—			603,321
Residential(1)	3,851			133			3,984			1,077,116			5,002			—			1,086,102
Consumer(2)	10,719			10,046			20,765			1,870,386			3,309			—			1,894,460
Total	$	78,747		$	22,416		$	101,163		$	13,084,885		$	56,245		$	15,653		$	13,257,946
% of Total Loans	0.59		%	0.17		%	0.76		%	98.70		%	0.42		%	0.12		%	100		%

(1)Residential accruing current balances excludes reverse mortgages, at fair value of $3.7 million.

(2)Includes $15.2 million of delinquent, but still accruing, U.S. government-guaranteed student loans that carry little risk of credit loss.

The following table presents the amortized cost basis of nonaccruing collateral-dependent loans by class at June 30, 2026 and December 31, 2025:


	June 30, 2026		December 31, 2025
(Dollars in thousands)	Property		Equipment and other		Property		Equipment and other
Commercial and industrial	$	13,094	$	6,753	$	17,557	$	9,504
Owner-occupied commercial	20,343		—		6,580		—
Commercial mortgages	11,522		—		7,565		—
Construction	7,939		—		22,381		—

Residential(1)	5,114		—		5,002		—
Consumer(2)	3,485		21		3,285		24
Total	$	61,497	$	6,774	$	62,370	$	9,528

(1)Excludes reverse mortgages at fair value.

(2)Includes home equity lines of credit.

As of June 30, 2026, there were 25 residential loans and 41 commercial loans in the process of foreclosure. The total outstanding balance on these loans was $5.2 million and $38.7 million, respectively. As of December 31, 2025, there were 29 residential loans and 37 commercial loans in the process of foreclosure. The total outstanding balance on these loans was $6.2 million and $36.4 million, respectively. Loan workout and other real estate owned (OREO) expenses were $1.3 million and $3.0 million during the three and six months ended June 30, 2026, and $1.4 million and $2.1 million during three and six months ended June 30, 2025. Loan workout and OREO expenses are included in Loan workout and other credit costs on the unaudited Consolidated Statements of Income.

Credit Quality Indicators

Below is a description of each of the risk ratings for all commercial loans:

•Pass. These borrowers currently show no indication of deterioration or potential problems and their loans are considered fully collectible.

•Special Mention. These borrowers have potential weaknesses that deserve management’s close attention. Borrowers in this category may be experiencing adverse operating trends, for example, declining revenues or margins, high leverage, tight liquidity, or increasing inventory without increasing sales. These adverse trends can have a potential negative effect on the borrower’s repayment capacity. These assets are not adversely classified and do not expose the Bank to significant risk that would warrant a more severe rating. Borrowers in this category may also be experiencing significant management problems, pending litigation, or other structural credit weaknesses.

•Substandard or Lower. These borrowers have well-defined weaknesses that require extensive oversight by management. Borrowers in this category may exhibit one or more of the following: inadequate debt service coverage, unprofitable operations, insufficient liquidity, high leverage, and weak or inadequate capitalization. Relationships in this category are not adequately protected by the sound financial worth and paying capacity of the obligor or the collateral pledged on the loan, if any. A distinct possibility exists that the Bank will sustain some loss if the deficiencies are not corrected. In addition, some borrowers in this category could have the added characteristic that the possibility of loss is extremely high. Current circumstances in the credit relationship make collection or liquidation in full highly questionable. Such impending events include: perfecting liens on additional collateral, obtaining collateral valuations, an acquisition or liquidation preceding, proposed merger, or refinancing plan.

Residential and Consumer Loans

The residential and consumer loan portfolios are monitored on an ongoing basis using delinquency information and loan type as credit quality indicators. These credit quality indicators are assessed in the aggregate in these relatively homogeneous portfolios. Loans that are greater than 90 days past due are generally considered nonperforming and placed on nonaccrual status.

The following tables provide an analysis of loans by portfolio segment based on the credit quality indicators used to determine the allowance for credit losses as of June 30, 2026.


	Term Loans Amortized Cost Basis by Origination Year(1)(2)
(Dollars in thousands)	2026		2025		2024		2023		2022		Prior		Revolving loans amortized cost basis		Revolving loans converted to term		Total
Commercial and industrial:
Risk Rating
Pass	$	362,154	$	790,371	$	437,846	$	300,065	$	192,114	$	412,804	$	7,697	$	334,016	$	2,837,067
Special mention	4,591		5,305		1,488		4,942		10,587		3,354		—		9		30,276
Substandard or lower	20,571		25,037		24,716		11,628		10,896		28,864		27		24,633		146,372
	$	387,316	$	820,713	$	464,050	$	316,635	$	213,597	$	445,022	$	7,724	$	358,658	$	3,013,715
Current-period gross charge-offs	$	—	$	215	$	513	$	2,086	$	5,089	$	1,503	$	—	$	—	$	9,406
Owner-occupied commercial:
Risk Rating
Pass	$	193,698	$	242,887	$	203,602	$	221,715	$	151,818	$	559,259	$	—	$	267,936	$	1,840,915
Special mention	—		1,174		2,421		—		2,590		2,182		—		361		8,728
Substandard or lower	2,401		9,059		5,559		10,737		12,768		28,474		—		11,726		80,724
	$	196,099	$	253,120	$	211,582	$	232,452	$	167,176	$	589,915	$	—	$	280,023	$	1,930,367
Current-period gross charge-offs	$	—	$	—	$	253	$	—	$	45	$	—	$	—	$	—	$	298
Commercial mortgages:
Risk Rating
Pass	$	400,354	$	408,229	$	362,004	$	407,648	$	306,622	$	1,207,247	$	—	$	636,693	$	3,728,797
Special mention	—		—		—		—		3,584		11,388		—		4,727		19,699
Substandard or lower	20,817		22,559		3,324		513		15,253		45,733		—		27,154		135,353
	$	421,171	$	430,788	$	365,328	$	408,161	$	325,459	$	1,264,368	$	—	$	668,574	$	3,883,849
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	1,740	$	—	$	—	$	—	$	1,740
Construction:
Risk Rating
Pass	$	117,320	$	466,667	$	282,413	$	70,667	$	2,863	$	9,254	$	—	$	35,027	$	984,211
Special mention	—		—		—		—		2,008		—		—		—		2,008
Substandard or lower	—		9,863		5,435		974		—		—		—		508		16,780
	$	117,320	$	476,530	$	287,848	$	71,641	$	4,871	$	9,254	$	—	$	35,535	$	1,002,999
Current-period gross charge-offs	$	—	$	—	$	—	$	3,735	$	—	$	—	$	—	$	—	$	3,735
Commercial small business leases:
Risk Rating
Performing	$	102,257	$	169,555	$	155,611	$	98,778	$	49,411	$	8,563	$	—	$	—	$	584,175
Nonperforming	—		—		—		—		—		—		—		—		—
	$	102,257	$	169,555	$	155,611	$	98,778	$	49,411	$	8,563	$	—	$	—	$	584,175
Current-period gross charge-offs	$	18	$	356	$	2,070	$	1,332	$	1,182	$	379	$	—	$	—	$	5,337
Residential(3):
Risk Rating
Performing	$	238,396	$	215,929	$	134,271	$	127,650	$	55,582	$	453,737	$	—	$	—	$	1,225,565
Nonperforming	—		—		—		109		—		7,100		—		—		7,209
	$	238,396	$	215,929	$	134,271	$	127,759	$	55,582	$	460,837	$	—	$	—	$	1,232,774
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Consumer(4):
Risk Rating
Performing	$	8,585	$	37,157	$	177,304	$	191,911	$	281,711	$	288,974	$	814,734	$	11,151	$	1,811,527
Nonperforming	—		—		—		255		415		166		2,646		229		3,711
	$	8,585	$	37,157	$	177,304	$	192,166	$	282,126	$	289,140	$	817,380	$	11,380	$	1,815,238
Current-period gross charge-offs	$	593	$	70	$	435	$	221	$	793	$	1,023	$	—	$	—	$	3,135

(1)Origination date represents the most recent underwriting of the loan which includes new relationships, renewals and extensions.

(2)Excludes loans held for sale.

(3)Excludes reverse mortgages at fair value.

(4)Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans.

The following tables provide an analysis of loans by portfolio segment based on the credit quality indicators used to determine the allowance for credit losses as of December 31, 2025.


	Term Loans Amortized Cost Basis by Origination Year(1)(2)
(Dollars in thousands)	2025		2024		2023		2022		2021		Prior		Revolving loans amortized cost basis		Revolving loans converted to term		Total
Commercial and industrial:
Risk Rating
Pass	$	792,428	$	498,646	$	295,043	$	238,011	$	67,071	$	390,703	$	7,917	$	296,470	$	2,586,289
Special mention	12,525		16,960		4,617		14,149		1,736		4,812		—		3,127		57,926
Substandard or Lower	49,685		17,836		8,951		14,881		3,165		29,720		30		28,171		152,439
	$	854,638	$	533,442	$	308,611	$	267,041	$	71,972	$	425,235	$	7,947	$	327,768	$	2,796,654
Current-period gross charge-offs	$	2,020	$	6,104	$	1,857	$	1,714	$	13,405	$	7,020	$	—	$	—	$	32,120
Owner-occupied commercial:
Risk Rating
Pass	$	243,709	$	237,172	$	257,796	$	176,149	$	186,215	$	467,831	$	—	$	267,819	$	1,836,691
Special mention	4,701		—		685		1,369		1,632		2,035		—		7,393		17,815
Substandard or Lower	11,460		5,891		14,633		10,222		6,108		24,733		—		9,786		82,833
	$	259,870	$	243,063	$	273,114	$	187,740	$	193,955	$	494,599	$	—	$	284,998	$	1,937,339
Current-period gross charge-offs	$	—	$	—	$	4	$	—	$	—	$	211	$	—	$	—	$	215
Commercial mortgages:
Risk Rating
Pass	$	527,094	$	390,403	$	521,726	$	354,680	$	357,104	$	1,020,802	$	—	$	578,575	$	3,750,384
Special mention	2,927		734		1,592		—		1,202		24,450		—		90		30,995
Substandard or Lower	33,835		8,515		2,557		15,439		4,480		36,678		—		33,276		134,780
	$	563,856	$	399,652	$	525,875	$	370,119	$	362,786	$	1,081,930	$	—	$	611,941	$	3,916,159
Current-period gross charge-offs	$	—	$	34	$	9	$	—	$	—	$	4,540	$	—	$	—	$	4,583
Construction:
Risk Rating
Pass	$	444,484	$	308,702	$	155,421	$	6,328	$	3,441	$	7,665	$	—	$	62,445	$	988,486
Special mention	—		—		—		—		—		—		—		—		—
Substandard or Lower	11,293		5,435		17,399		—		—		—		—		1,298		35,425
	$	455,777	$	314,137	$	172,820	$	6,328	$	3,441	$	7,665	$	—	$	63,743	$	1,023,911
Current-period gross charge-offs	$	—	$	—	$	4,900	$	—	$	—	$	—	$	—	$	—	$	4,900
Commercial small business leases:
Risk Rating
Performing	$	188,345	$	182,471	$	123,065	$	68,356	$	21,001	$	20,083	$	—	$	—	$	603,321
Nonperforming	—		—		—		—		—		—		—		—		—
	$	188,345	$	182,471	$	123,065	$	68,356	$	21,001	$	20,083	$	—	$	—	$	603,321
Current-period gross charge-offs	$	460	$	2,887	$	5,359	$	3,938	$	1,489	$	253	$	—	$	—	$	14,386
Residential(3):
Risk Rating
Performing	$	231,358	$	154,565	$	144,660	$	59,915	$	84,198	$	403,653	$	—	$	—	$	1,078,349
Nonperforming	—		—		113		—		3,491		4,149		—		—		7,753
	$	231,358	$	154,565	$	144,773	$	59,915	$	87,689	$	407,802	$	—	$	—	$	1,086,102
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Consumer(4):
Risk Rating
Performing	$	46,648	$	214,198	$	230,309	$	321,908	$	86,583	$	262,586	$	717,385	$	11,421	$	1,891,038
Nonperforming	—		—		202		311		—		72		2,601		236		3,422
	$	46,648	$	214,198	$	230,511	$	322,219	$	86,583	$	262,658	$	719,986	$	11,657	$	1,894,460
Current-period gross charge-offs	$	9,506	$	709	$	1,956	$	4,097	$	1,256	$	1,339	$	—	$	—	$	18,863

(1)Origination date represents the most recent underwriting of the loan which includes new relationships, renewals and extensions.

(2)Excludes loans held for sale.

(3)Excludes reverse mortgages at fair value.

(4)Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans.

Troubled Loans

The Company offers loan modifications to commercial and consumer borrowers that may result in a term extension, payment delay, interest rate reduction, principal forgiveness, or combination thereof. Loan modifications are offered on a case-by-case basis and are generally term extension, payment delay, and interest rate reduction modification types. Forbearance (due to hardship) programs result in modification types including payment delay and/or term extension. In addition, certain reorganization bankruptcy judgments may result in interest rate reduction, term extension, or principal forgiveness modification types.

The following tables show the period-end amortized cost basis of troubled loans modified during the three and six months ended June 30, 2026 and 2025, disaggregated by portfolio segment and type of modification granted:


	Three Months Ended June 30, 2026
(Dollars in thousands)	Term Extension		More-Than-Insignificant Payment Delay		Combination- Term Extension and Payment Delay		Combination- Term Extension and Interest Rate Reduction		Combination - Payment Delay and Interest Rate Reduction		Total		% of Total Loan Category
Commercial and industrial	$	15,675	$	—	$	—	$	—	$	—	$	15,675	0.52	%
Owner-occupied commercial	485		—		—		—		—		485		0.03	%
Commercial mortgages	1,944		—		4,221		—		—		6,165		0.16	%



Consumer(1)	7		341		266		48		—		662		0.04	%
Total	$	18,111	$	341	$	4,487	$	48	$	—	$	22,987	0.17	%

	Six Months Ended June 30, 2026
(Dollars in thousands)	Term Extension		More-Than-Insignificant Payment Delay		Combination- Term Extension and Payment Delay		Combination- Term Extension and Interest Rate Reduction		Combination - Payment Delay and Interest Rate Reduction		Total		% of Total Loan Category
Commercial and industrial	$	15,675	$	47	$	1,753	$	—	$	—	$	17,475	0.58	%
Owner-occupied commercial	1,809		—		1,868		—		—		3,677		0.19	%
Commercial mortgages	32,431		—		4,221		—		1,489		38,141		0.98	%
Construction	—		627		—		—		—		627		0.06	%

Residential	—		870		—		—		—		870		0.07	%
Consumer(1)	428		424		266		48		—		1,166		0.06	%
Total	$	50,343	$	1,968	$	8,108	$	48	$	1,489	$	61,956	0.46	%

(1)Includes home equity lines of credit, installment loans and unsecured lines of credit.


	Three months ended June 30, 2025
(Dollars in thousands)	Term Extension		More-Than-Insignificant Payment Delay		Combination- Term Extension and Payment Delay		Total		% of Total Loan Category
Commercial and industrial	$	14,874	$	2,500	$	14,800	$	32,174	1.17	%

Commercial mortgages	16,029		—		6,570		22,599		0.58	%



Consumer(1)(2)	2		15		8		25		—	%
Total	$	30,905	$	2,515	$	21,378	$	54,798	0.42	%

	Six Months Ended June 30, 2025
(Dollars in thousands)	Term Extension		More-Than-Insignificant Payment Delay		Combination- Term Extension and Payment Delay		Total		% of Total Loan Category
Commercial and industrial	$	15,801	$	2,565	$	14,800	$	33,166	1.21	%
Owner-occupied commercial	6,912		908		—		7,820		0.40	%
Commercial mortgages	52,706		—		6,570		59,276		1.52	%
Construction	25,884		—		—		25,884		3.02	%


Consumer(1)(3)	2		193		401		596		0.03	%
Total	$	101,305	$	3,666	$	21,771	$	126,742	0.98	%

(1)Includes home equity lines of credit, installment loans and unsecured lines of credit.

(2)Excludes $1.3 million of troubled loans held for sale.

(3)Excludes $2.3 million of troubled loans held for sale.

The following table describes the financial effect of the modifications made to troubled loans during the three and six months ended June 30, 2026 and 2025:


	Three Months Ended June 30, 2026		Six Months Ended June 30, 2026
	Term Extension(1)	Interest Rate Reduction(2)	More-Than-Insignificant Payment Delay(2)	Term Extension(1)	Interest Rate Reduction(2)	More-Than-Insignificant Payment Delay(2)
Commercial and industrial	0.25	—%	—%	0.60	—%	0.01%
Owner-occupied commercial	1.58	—	—	0.55	—	0.01
Commercial mortgages	0.24	—	0.03	1.61	0.01	0.04
Construction	0.00	—	—	0.00	—	—

Residential	0.00	—	—	0.00	—	0.01
Consumer	11.97	0.45	—	9.41	0.45	0.01


	Three Months Ended June 30, 2025	Six Months Ended June 30, 2025
	Term Extension(1)		More-Than-Insignificant Payment Delay(2)	Term Extension(1)	More-Than-Insignificant Payment Delay(2)
Commercial and industrial	0.73		0.13%	0.74	0.13%
Owner-occupied commercial	0.00		—	0.26	0.01
Commercial mortgages	0.32		0.05	0.63	0.05
Construction	0.00		—	0.59	—


Consumer(3)	0.48		—	0.49	—

(1)Represents the weighted-average increase in the life of modified loans measured in years, which reduces monthly payment amounts for borrowers.

(2)Represents the percentage of loans deferred over the total loan portfolio excluding reverse mortgages at fair value.

(3)Excludes $1.3 million and $2.3 million of troubled loans held for sale for the three and six months ended June 30, 2025, respectively.

As of June 30, 2026 and December 31, 2025, the Company had commitments to extend credit of $9.9 million and $6.4 million, respectively, to borrowers experiencing financial difficulty whose terms had been modified.

Upon the Company’s determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is charged off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount.

The following tables show the amortized cost of loans that received a modification that had a payment default during the three and six months ended June 30, 2026 and the six months ended June 30, 2025 and were modified in the 12 months before default to borrowers experiencing financial difficulty. There were no loans that received a modification that had a payment default during the three months ended June 30, 2025 and were modified in the 12 months before default to borrowers experiencing financial difficulty.


	Three Months Ended June 30, 2026
	Term Extension		More-Than-Insignificant Payment Delay		Total
Commercial and industrial	$	476	$	—	$	476
Owner-occupied commercial	319		—		319




Consumer	—		201		201
Total	$	795	$	201	$	996

	Six Months Ended June 30, 2026
	Term Extension		More-Than-Insignificant Payment Delay		Total
Commercial and industrial	$	476	$	—	$	476
Owner-occupied commercial	319		—		319
Commercial mortgages	2,991		—		2,991



Consumer	—		201		201
Total	$	3,786	$	201	$	3,987


	Six months ended June 30, 2025
	Term Extension		Total


Commercial mortgages	$	5,435	$	5,435




Total	$	5,435	$	5,435

The Company closely monitors the performance of troubled loans to understand the effectiveness of its modification efforts. The following tables show the performance of loans that have been modified in the last 12 months as of June 30, 2026 and 2025:


	June 30, 2026
(Dollars in thousands)	30-89 Days Past Due and Still Accruing		90+ Days Past Due and Still Accruing		Accruing Current Balances		Nonaccrual Loans		Total
Commercial and industrial	$	1,088	$	—	$	30,720	$	1,679	$	33,487
Owner-occupied commercial	—		—		5,434		3,818		9,252
Commercial mortgages	—		—		51,761		7,678		59,439
Construction	—		—		627		—		627

Residential	225		—		870		—		1,095
Consumer(1)	61		—		1,440		335		1,836
Total	$	1,374	$	—	$	90,852	$	13,510	$	105,736

(1)Includes home equity lines of credit, installment loans and unsecured lines of credit.


	June 30, 2025
	30-89 Days Past Due and Still Accruing		90+ Days Past Due and Still Accruing		Accruing Current Balances		Nonaccrual Loans		Total
Commercial and industrial(1)	$	—	$	—	$	32,869	$	17,818	$	50,687
Owner-occupied commercial	—		6,786		—		1,034		7,820
Commercial mortgages	—		—		54,125		21,325		75,450
Construction	—		—		19,641		25,884		45,525

Residential	—		—		—		140		140
Consumer(2)(3)	44		8		623		193		868
Total	$	44	$	6,794	$	107,258	$	66,394	$	180,490

(1)Excludes $10.9 million of troubled loans held for sale.

(2)Includes home equity lines of credit, installment loans and unsecured lines of credit.

(3)Excludes $4.5 million of troubled loans held for sale.

Allowance for Credit Losses Related to Other Accounts Receivable

The Company determines the allowance for other accounts receivable (e.g. fee-related receivables) considering historical loss information and other available indicators. In certain cases where there are no historical or current indicators of an expected credit loss, we may estimate the reserve to be close to zero. The allowance for credit losses related to other accounts receivable was $2.8 million as of June 30, 2026 and December 31, 2025.