Old National’s loans consist primarily of loans made to consumers and commercial clients in many diverse industries, including real estate rental and leasing, manufacturing, healthcare, wholesale trade, construction, and agriculture, among others. Most of Old National’s lending activity occurs within our principal geographic markets in the Midwest and Southeast regions of the United States. Old National manages concentrations of credit exposure by industry, product, geography, client relationship, and loan size.

Old National has loan participations, which qualify as participating interests, with other financial institutions. At June 30, 2024, these loans totaled $3.5 billion, of which $1.6 billion had been sold to other financial institutions and $1.9 billion was retained by Old National. The loan participations convey proportionate ownership rights with equal priority to each participating interest holder; involve no recourse (other than ordinary representations and warranties) to, or subordination by, any participating interest holder; all cash flows are divided among the participating interest holders in proportion to each holder’s share of ownership; and no holder has the right to pledge the entire financial asset unless all participating interest holders agree.

The loan categories used to monitor and analyze interest income and yields are different than the portfolio segments used to determine the allowance for credit losses on loans. The allowance for credit losses was calculated by pooling loans of similar credit risk characteristics and credit monitoring procedures. The four loan portfolios used to monitor and analyze interest income and yields – commercial, commercial real estate, residential real estate, and consumer – are reclassified into seven segments of loans – commercial, commercial real estate, BBCC, residential real estate, indirect, direct, and home equity for purposes of determining the allowance for credit losses on loans. The commercial and commercial real estate loan categories shown on the balance sheet include the same pool of loans as the commercial, commercial real estate, and BBCC portfolio segments. The consumer loan category shown on the balance sheet is comprised of the same loans in the indirect, direct, and home equity portfolio segments. The portfolio segment reclassifications follow:


	Balance Sheet Line Item		Portfolio Segment Reclassifications		Portfolio Segment After Reclassifications

(dollars in thousands)
June 30, 2024
Commercial (1)	$	10,332,631	$	(230,404)	$	10,102,227
Commercial real estate	16,016,958		(175,614)		15,841,344
BBCC	N/A		406,018		406,018
Residential real estate	6,894,957		—		6,894,957
Consumer	2,905,967		(2,905,967)		N/A
Indirect	N/A		1,101,585		1,101,585
Direct	N/A		429,426		429,426
Home equity	N/A		1,374,956		1,374,956
Total loans (2)	$	36,150,513	$	—	$	36,150,513
Allowance for credit losses on loans	(366,335)		—		(366,335)
Net loans	$	35,784,178	$	—	$	35,784,178

December 31, 2023
Commercial (1)	$	9,512,230	$	(232,764)	$	9,279,466
Commercial real estate	14,140,629		(169,058)		13,971,571
BBCC	N/A		401,822		401,822
Residential real estate	6,699,443		—		6,699,443
Consumer	2,639,625		(2,639,625)		N/A
Indirect	N/A		1,050,982		1,050,982
Direct	N/A		523,172		523,172
Home equity	N/A		1,065,471		1,065,471
Total loans (2)	$	32,991,927	$	—	$	32,991,927
Allowance for credit losses on loans	(307,610)		—		(307,610)
Net loans	$	32,684,317	$	—	$	32,684,317

Commercial loans are classified primarily on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee; however, some loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its clients.

on the property securing the loan. Commercial real estate loans may be adversely affected by conditions in the real estate markets or in the general economy. The properties securing Old National’s commercial real estate portfolio are diverse in terms of type and geographic location. Management monitors and evaluates commercial real estate loans based on collateral, geography, and risk grade criteria. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner-occupied loans.

Included with commercial real estate are construction loans, which are underwritten utilizing independent appraisal reviews, sensitivity analysis of absorption and lease rates, financial analysis of the developers and property owners, and feasibility studies, if available. Construction loans are generally based on estimates of costs and value associated with the complete project. These estimates may be inaccurate. Construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders (including Old National), sales of developed property, or an interim loan commitment from Old National until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, general economic conditions, and the availability of long-term financing.

BBCC loans are typically granted to small businesses with gross revenues of less than $5 million and aggregate debt of less than $1 million. Old National has established minimum debt service coverage ratios, minimum FICO scores for owners and guarantors, and the ability to show relatively stable earnings as criteria to help mitigate risk. Repayment of these loans depends on the personal income of the borrowers and the cash flows of the business. These factors can be affected by such changes as economic conditions and unemployment levels.

With respect to residential loans that are secured by 1 - 4 family residences and are generally owner occupied, Old National typically establishes a maximum loan-to-value ratio and generally requires private mortgage insurance if that ratio is exceeded. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment can also be impacted by changes in residential property values. Portfolio risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers.

Indirect loans are secured by automobile collateral, generally new and used cars and trucks from auto dealers that operate within our footprint. Old National typically mitigates the risk of indirect loans by establishing minimum FICO scores, maximum loan-to-value ratios, and maximum debt-to-income ratios. Repayment of these loans depends largely on the personal income of the borrowers, which can be affected by changes in economic conditions such as unemployment levels. Portfolio risk is mitigated by the fact that the loans are of smaller amounts spread over many borrowers and ongoing reviews of dealer relationships.

Direct loans are typically secured by collateral such as auto or real estate or are unsecured. Old National has established underwriting standards such as minimum FICO scores, maximum loan-to-value ratios, and maximum debt-to-income ratios. Repayment of these loans depends largely on the personal income of the borrowers, which can be affected by changes in economic conditions such as unemployment levels. Portfolio risk is mitigated by the fact that the loans are of smaller amounts spread over many borrowers.

Home equity loans are generally secured by 1-4 family residences that are owner-occupied. Old National has established underwriting standards such as minimum FICO scores, maximum loan-to-value ratios, and maximum debt-to-income ratios. Repayment of these loans depends largely on the personal income of the borrowers, which can be affected by changes in economic conditions such as unemployment levels. Portfolio risk is mitigated by the

Credit loss assumptions used when computing the level of expected credit losses are estimated using a model that categorizes loan pools based on loss history, delinquency status, and other credit trends and risk characteristics, including current conditions and reasonable and supportable forecasts about the future. The base forecast scenario considers unemployment, gross domestic product, and the BBB ratio (BBB spread to the 10-year U.S. Treasury rate). In addition to the quantitative inputs, several qualitative factors are considered. These factors include the risk that unemployment, gross domestic product, housing product index, and the BBB ratio prove to be more severe and/or prolonged than our baseline forecast due to a variety of factors including monetary actions to control inflation, recent instability in the banking sector, global military conflicts, and global supply chain issues. Old National’s activity in the allowance for credit losses on loans by portfolio segment was as follows:


(dollars in thousands)	Balance at Beginning of Period		Allowance Established for Acquired PCD Loans		Charge-offs		Recoveries		Provision for Loan Losses		Balance at End of Period
Three Months Ended June 30, 2024
Commercial	$	123,437	$	14,593	$	(9,927)	$	462	$	9,895	$	138,460
Commercial real estate	160,640		8,483		(3,101)		542		23,347		189,911
BBCC	3,163		—		(935)		230		439		2,897
Residential real estate	21,899		134		—		762		340		23,135
Indirect	1,218		—		(1,084)		335		764		1,233
Direct	2,952		59		(1,884)		565		1,439		3,131
Home equity	6,404		653		(110)		100		521		7,568
Total	$	319,713	$	23,922	$	(17,041)	$	2,996	$	36,745	$	366,335
Three Months Ended June 30, 2023
Commercial	$	125,768	$	—	$	(8,331)	$	1,814	$	8,152	$	127,403
Commercial real estate	135,348		—		(2,458)		1,029		2,978		136,897
BBCC	2,316		—		(94)		31		523		2,776
Residential real estate	20,207		—		(218)		53		379		20,421
Indirect	1,434		—		(402)		612		(237)		1,407
Direct	6,766		—		(2,600)		637		(48)		4,755
Home equity	6,872		—		(228)		63		189		6,896
Total	$	298,711	$	—	$	(14,331)	$	4,239	$	11,936	$	300,555
Six Months Ended June 30, 2024
Commercial	$	118,333	$	14,593	$	(13,586)	$	796	$	18,324	$	138,460
Commercial real estate	155,099		8,483		(9,742)		1,577		34,494		189,911
BBCC	2,887		—		(1,011)		248		773		2,897
Residential real estate	20,837		134		—		781		1,383		23,135
Indirect	1,236		—		(2,222)		667		1,552		1,233
Direct	3,169		59		(4,312)		1,052		3,163		3,131
Home equity	6,049		653		(188)		145		909		7,568
Total	$	307,610	$	23,922	$	(31,061)	$	5,266	$	60,598	$	366,335
Six Months Ended June 30, 2023
Commercial	$	120,612	$	—	$	(20,754)	$	2,097	$	25,448	$	127,403
Commercial real estate	138,244		—		(3,647)		1,292		1,008		136,897
BBCC	2,431		—		(122)		104		363		2,776
Residential real estate	21,916		—		(241)		125		(1,379)		20,421
Indirect	1,532		—		(1,599)		1,024		450		1,407
Direct	12,116		—		(5,838)		1,218		(2,741)		4,755
Home equity	6,820		—		(310)		130		256		6,896
Total	$	303,671	$	—	$	(32,511)	$	5,990	$	23,405	$	300,555

Old National maintains an allowance for credit losses on unfunded loan commitments to provide for the risk of loss inherent in these arrangements. The allowance is computed using a methodology similar to that used to determine the allowance for credit losses on loans, modified to take into account the probability of a drawdown on the commitment. The allowance for credit losses on unfunded loan commitments is classified as a liability account on the balance sheet within accrued expenses and other liabilities, while the corresponding provision for unfunded loan commitments is included in the provision for credit losses. Old National’s activity in the allowance for credit losses on unfunded loan commitments was as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2024		2023		2024		2023
Allowance for credit losses on unfunded loan commitments:
Balance at beginning of period	$	26,264	$	34,156	$	31,226	$	32,188
Provision for credit losses on unfunded loan commitments acquired during the period	1,763		—		1,763		—
Provision (release) for credit losses on unfunded loan commitments	(2,294)		2,851		(7,256)		4,819
Balance at end of period	$	25,733	$	37,007	$	25,733	$	37,007

Old National’s management monitors the credit quality of its loans on an ongoing basis with the AQR for commercial loans reviewed annually or at renewal and the performance of its residential and consumer loans based upon the accrual status refreshed at least quarterly. Internally, management assigns an AQR to each non-homogeneous commercial, commercial real estate, and BBCC loan in the portfolio. The primary determinants of the AQR are the reliability of the primary source of repayment and the past, present, and projected financial condition of the borrower. The AQR will also consider current industry conditions. Major factors used in determining the AQR can vary based on the nature of the loan, but commonly include factors such as debt service coverage, internal cash flow, liquidity, leverage, operating performance, debt burden, FICO scores, occupancy, interest rate sensitivity, and expense burden. Old National uses the following definitions for risk ratings:

Classified – Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.


(dollars in thousands)	Origination Year														Revolving to Term
	2024		2023		2022		2021		2020		Prior		Revolving				Total
June 30, 2024
Commercial:

Pass	$	961,949	$	1,737,949	$	1,427,702	$	846,164	$	498,959	$	723,629	$	2,575,617	$	535,146	$	9,307,115
Special Mention	29,482		48,989		63,401		14,828		31,286		37,827		123,628		26,188		375,629
Classified:
Substandard	33		42,972		61,074		51,522		44,581		25,824		77,158		37,828		340,992
Nonaccrual	—		746		5,390		2,211		2,068		3,724		1,717		6,229		22,085
Doubtful	—		14,074		12,549		5,394		621		565		13,679		9,524		56,406
Total	$	991,464	$	1,844,730	$	1,570,116	$	920,119	$	577,515	$	791,569	$	2,791,799	$	614,915	$	10,102,227


Commercial real estate:

Pass	$	1,104,612	$	2,470,220	$	4,029,061	$	2,380,569	$	1,428,952	$	2,201,489	$	157,382	$	813,468	$	14,585,753
Special Mention	43,020		37,176		126,490		121,150		32,022		85,827		29,199		102,141		577,025
Classified:
Substandard	13,274		17,657		128,097		71,232		52,180		161,256		—		53,886		497,582
Nonaccrual	—		833		3,685		6,627		4,353		33,077		—		1,063		49,638
Doubtful	—		5,365		714		35,473		25,491		42,037		—		22,266		131,346
Total	$	1,160,906	$	2,531,251	$	4,288,047	$	2,615,051	$	1,542,998	$	2,523,686	$	186,581	$	992,824	$	15,841,344


BBCC:

Pass	$	43,798	$	85,992	$	60,883	$	38,834	$	34,221	$	36,947	$	65,745	$	17,236	$	383,656
Special Mention	332		3,357		2,675		1,127		733		845		2,473		3,459		15,001
Classified:
Substandard	110		481		295		473		35		657		315		146		2,512
Nonaccrual	—		85		726		454		108		983		—		825		3,181
Doubtful	—		437		262		194		15		222		—		538		1,668
Total	$	44,240	$	90,352	$	64,841	$	41,082	$	35,112	$	39,654	$	68,533	$	22,204	$	406,018


	Origination Year														Revolving to Term
	2023		2022		2021		2020		2019		Prior		Revolving				Total
December 31, 2023
Commercial:

Pass	$	1,826,289	$	1,573,669	$	985,964	$	520,883	$	450,911	$	495,979	$	2,051,985	$	651,953	$	8,557,633
Special Mention	20,038		90,031		19,953		36,906		25,756		47,357		89,765		44,348		374,154
Classified:
Substandard	27,271		41,164		27,990		37,618		10,461		29,981		72,703		56,716		303,904
Nonaccrual	32		7,034		—		—		823		3,411		—		5,461		16,761
Doubtful	—		7,261		5,925		4,875		1,742		7,211		—		—		27,014
Total	$	1,873,630	$	1,719,159	$	1,039,832	$	600,282	$	489,693	$	583,939	$	2,214,453	$	758,478	$	9,279,466

Commercial real estate:

Pass	$	2,177,841	$	3,515,702	$	2,563,638	$	1,576,044	$	1,010,351	$	1,161,119	$	103,332	$	960,386	$	13,068,413
Special Mention	69,648		69,946		68,708		27,059		52,107		95,896		3,893		64,730		451,987
Classified:
Substandard	26,638		56,423		21,401		28,983		61,186		49,558		—		48,760		292,949
Nonaccrual	—		21,919		10,706		1,975		1,634		8,632		—		1,400		46,266
Doubtful	5,360		429		30,897		2,306		37,777		35,187		—		—		111,956
Total	$	2,279,487	$	3,664,419	$	2,695,350	$	1,636,367	$	1,163,055	$	1,350,392	$	107,225	$	1,075,276	$	13,971,571

BBCC:

Pass	$	81,102	$	64,583	$	44,307	$	38,086	$	27,557	$	19,028	$	68,807	$	33,361	$	376,831
Special Mention	—		—		857		700		1,001		349		2,144		12,728		17,779
Classified:
Substandard	436		193		252		—		—		604		15		1,006		2,506
Nonaccrual	—		—		482		—		4		1,105		—		1,402		2,993
Doubtful	302		727		254		286		60		84		—		—		1,713
Total	$	81,840	$	65,503	$	46,152	$	39,072	$	28,622	$	21,170	$	70,966	$	48,497	$	401,822

For residential real estate and consumer loan classes, Old National evaluates credit quality based on the aging status of the loan and by payment activity. The performing or nonperforming status is updated on an on-going basis dependent upon improvement and deterioration in credit quality. The following table presents the amortized cost of term residential real estate and consumer loans based on payment activity and origination year:


	Origination Year														Revolving to Term
(dollars in thousands)	2024		2023		2022		2021		2020		Prior		Revolving				Total
June 30, 2024
Residential real estate:
Risk Rating:
Performing	$	211,657	$	496,415	$	1,502,442	$	1,879,448	$	1,642,226	$	1,114,416	$	67	$	282	$	6,846,953
Nonperforming	—		1,924		8,019		5,535		3,797		28,729		—		—		48,004
Total	$	211,657	$	498,339	$	1,510,461	$	1,884,983	$	1,646,023	$	1,143,145	$	67	$	282	$	6,894,957


Indirect:
Risk Rating:
Performing	$	252,797	$	341,949	$	289,675	$	125,544	$	58,368	$	28,872	$	—	$	—	$	1,097,205
Nonperforming	33		720		1,451		1,342		407		427		—		—		4,380
Total	$	252,830	$	342,669	$	291,126	$	126,886	$	58,775	$	29,299	$	—	$	—	$	1,101,585


Direct:
Risk Rating:
Performing	$	25,512	$	84,213	$	66,009	$	62,213	$	24,375	$	63,076	$	96,462	$	1,878	$	423,738
Nonperforming	20		68		811		2,209		599		1,939		30		12		5,688
Total	$	25,532	$	84,281	$	66,820	$	64,422	$	24,974	$	65,015	$	96,492	$	1,890	$	429,426


Home equity:
Risk Rating:
Performing	$	—	$	—	$	265	$	271	$	36	$	5,637	$	1,323,339	$	27,623	$	1,357,171
Nonperforming	—		—		—		124		249		5,989		1,935		9,488		17,785
Total	$	—	$	—	$	265	$	395	$	285	$	11,626	$	1,325,274	$	37,111	$	1,374,956


	Origination Year														Revolving to Term
	2023		2022		2021		2020		2019		Prior		Revolving				Total
December 31, 2023
Residential real estate:
Risk Rating:
Performing	$	453,743	$	1,508,671	$	1,836,078	$	1,705,131	$	430,783	$	722,987	$	—	$	279	$	6,657,672
Nonperforming	116		4,563		4,004		3,375		4,078		25,635		—		—		41,771
Total	$	453,859	$	1,513,234	$	1,840,082	$	1,708,506	$	434,861	$	748,622	$	—	$	279	$	6,699,443

Indirect:
Risk Rating:
Performing	$	393,369	$	355,822	$	162,735	$	82,871	$	37,967	$	13,815	$	—	$	196	$	1,046,775
Nonperforming	372		1,472		1,207		547		318		291		—		—		4,207
Total	$	393,741	$	357,294	$	163,942	$	83,418	$	38,285	$	14,106	$	—	$	196	$	1,050,982

Direct:
Risk Rating:
Performing	$	109,372	$	90,310	$	92,491	$	48,387	$	29,659	$	67,129	$	75,080	$	4,852	$	517,280
Nonperforming	67		531		517		560		210		3,872		124		11		5,892
Total	$	109,439	$	90,841	$	93,008	$	48,947	$	29,869	$	71,001	$	75,204	$	4,863	$	523,172

Home equity:
Risk Rating:
Performing	$	290	$	164	$	160	$	140	$	679	$	4,483	$	1,019,389	$	23,918	$	1,049,223
Nonperforming	—		310		328		404		741		4,327		2,844		7,294		16,248
Total	$	290	$	474	$	488	$	544	$	1,420	$	8,810	$	1,022,233	$	31,212	$	1,065,471


	Origination Year
(dollars in thousands)	2024		2023		2022		2021		2020		Prior		Revolving		Total
Three Months Ended June 30, 2024
Commercial	$	—	$	2,358	$	6,149	$	389	$	43	$	566	$	422		$	9,927
Commercial real estate	—		—		23		468		—		2,610		—			3,101
BBCC	—		605		153		35		112		30		—			935
Residential real estate	—		—		—		—		—		—		—			—
Indirect	54		531		377		96		6		20		—			1,084
Direct	75		79		394		347		173		172		644			1,884
Home equity	—		—		—		—		—		110		—			110
Total gross charge-offs	$	129	$	3,573	$	7,096	$	1,335	$	334	$	3,508	$	1,066		$	17,041

	Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving		Total
Three Months Ended June 30, 2023
Commercial	$	—	$	2,100	$	5,931	$	120	$	—	$	—	$	180		$	8,331
Commercial real estate	—		—		—		—		—		2,458		—			2,458
BBCC	—		47		—		47		—		—		—			94
Residential real estate	—		—		—		—		—		218		—			218
Indirect	10		164		124		48		16		40		—			402
Direct	—		430		588		172		414		195		801			2,600
Home equity	—		—		—		—		—		228		—			228
Total gross charge-offs	$	10	$	2,741	$	6,643	$	387	$	430	$	3,139	$	981		$	14,331

	Origination Year
	2024		2023		2022		2021		2020		Prior		Revolving		Total
Six Months Ended June 30, 2024
Commercial	$	—	$	2,358	$	9,630	$	422	$	51	$	570	$	555		$	13,586
Commercial real estate	—		—		23		2,644		—		7,075		—			9,742
BBCC	—		605		229		35		112		30		—			1,011
Residential real estate	—		—		—		—		—		—		—			—
Indirect	54		901		849		321		39		58		—			2,222
Direct	75		195		970		876		286		395		1,515			4,312
Home equity	—		—		—		34		—		154		—			188
Total gross charge-offs	$	129	$	4,059	$	11,701	$	4,332	$	488	$	8,282	$	2,070		$	31,061

	Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving		Total
Six Months Ended June 30, 2023
Commercial	$	—	$	2,100	$	11,161	$	120	$	6,789	$	239	$	345		$	20,754
Commercial real estate	—		54		735		400		—		2,458		—			3,647
BBCC	—		47		28		47		—		—		—			122
Residential real estate	—		—		—		—		—		241		—			241
Indirect	10		678		554		141		127		89		—			1,599
Direct	—		901		1,382		458		741		390		1,966			5,838
Home equity	—		—		—		—		—		310		—			310
Total gross charge-offs	$	10	$	3,780	$	13,860	$	1,166	$	7,657	$	3,727	$	2,311		$	32,511

Old National does not record interest on nonaccrual loans until principal is recovered. For all loan classes, a loan is generally placed on nonaccrual status when principal or interest becomes 90 days past due unless it is well secured and in the process of collection, or earlier when concern exists as to the ultimate collectability of principal or interest. Interest accrued but not received is reversed against earnings. Cash interest received on these loans is applied to the principal balance until the principal is recovered or until the loan returns to accrual status. Loans may


(dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		Past Due 90 Days or More		Total Past Due		Current		Total Loans
June 30, 2024
Commercial	$	14,191	$	6,151	$	17,030	$	37,372	$	10,064,855	$	10,102,227
Commercial real estate	9,442		16,022		41,146		66,610		15,774,734		15,841,344
BBCC	2,155		54		1,474		3,683		402,335		406,018
Residential	10,558		3,189		16,680		30,427		6,864,530		6,894,957
Indirect	6,550		1,928		846		9,324		1,092,261		1,101,585
Direct	4,578		1,341		3,238		9,157		420,269		429,426
Home equity	5,180		2,655		7,739		15,574		1,359,382		1,374,956
Total	$	52,654	$	31,340	$	88,153	$	172,147	$	35,978,366	$	36,150,513

December 31, 2023
Commercial	$	16,128	$	1,332	$	4,861	$	22,321	$	9,257,145	$	9,279,466
Commercial real estate	9,081		5,254		30,660		44,995		13,926,576		13,971,571
BBCC	1,368		134		977		2,479		399,343		401,822
Residential	12,358		367		15,249		27,974		6,671,469		6,699,443
Indirect	7,025		1,854		1,342		10,221		1,040,761		1,050,982
Direct	5,436		1,455		1,787		8,678		514,494		523,172
Home equity	7,791		2,347		6,659		16,797		1,048,674		1,065,471
Total	$	59,187	$	12,743	$	61,535	$	133,465	$	32,858,462	$	32,991,927


	June 30, 2024						December 31, 2023
(dollars in thousands)	Nonaccrual Amortized Cost		Nonaccrual With No Related Allowance		Past Due 90 Days or More and Accruing		Nonaccrual Amortized Cost		Nonaccrual With No Related Allowance		Past Due 90 Days or More and Accruing
Commercial	$	78,491	$	27,448	$	40	$	43,775	$	13,143	$	242
Commercial real estate	180,984		29,225		744		158,222		24,507		585
BBCC	4,849		—		—		4,706		—		95
Residential	48,004		—		3,901		41,771		—		—
Indirect	4,380		—		17		4,207		—		8
Direct	5,688		—		2		5,892		—		31
Home equity	17,785		—		547		16,248		—		—
Total	$	340,181	$	56,673	$	5,251	$	274,821	$	37,650	$	961

When management determines that foreclosure is probable, expected credit losses for collateral dependent loans are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. A loan is considered collateral dependent when the borrower is experiencing financial difficulty, and the loan is expected to be repaid substantially through the operation or sale of the collateral. The class of loan represents the primary collateral type associated with the loan. Significant quarter-over-quarter changes are reflective of changes in nonaccrual status and not necessarily associated with credit quality indicators like appraisal value. The following table presents the amortized cost basis of collateral dependent loans by class of loan:


	Type of Collateral
(dollars in thousands)	Real Estate		Blanket Lien		Investment Securities/Cash		Auto		Other
June 30, 2024
Commercial	$	16,620	$	32,984	$	4,892	$	11,429	$	7,736
Commercial real estate	159,868		1,559		2,178		—		6,209
BBCC	3,411		1,129		100		208		—
Residential	48,004		—		—		—		—
Indirect	—		—		—		4,380		—
Direct	2,903		—		6		384		30
Home equity	17,785		—		—		—		—
Total loans	$	248,591	$	35,672	$	7,176	$	16,401	$	13,975

December 31, 2023
Commercial	$	14,303	$	24,729	$	2,577	$	280	$	328
Commercial real estate	146,425		—		1,167		—		6,107
BBCC	3,522		794		—		390		—
Residential	41,771		—		—		—		—
Indirect	—		—		—		4,207		—
Direct	4,727		1		3		366		29
Home equity	16,248		—		—		—		—
Total loans	$	226,996	$	25,524	$	3,747	$	5,243	$	6,464


(dollars in thousands)	Term Extension		Total Class of Loans
Three Months Ended June 30, 2024
Commercial	$	3,859	0.0	%
Commercial real estate	58,232		0.4	%





Total	$	62,091	0.2	%

Three Months Ended June 30, 2023
Commercial	$	1,231	0.0	%
Commercial real estate	12,449		0.1	%





Total	$	13,680	0.0	%

Six Months Ended June 30, 2024
Commercial	$	14,867	0.1	%
Commercial real estate	73,406		0.5	%





Total	$	88,273	0.2	%

Six Months Ended June 30, 2023
Commercial	$	18,517	0.2	%
Commercial real estate	19,280		0.1	%





Total	$	37,797	0.1	%


(dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		Past Due 90 Days or More		Total Past Due		Current		Total Loans
June 30, 2024
Commercial	$	1,077	$	2,813	$	980	$	4,870	$	14,866	$	19,736
Commercial real estate	8,854		5,077		27,017		40,948		72,083		113,031





Total	$	9,931	$	7,890	$	27,997	$	45,818	$	86,949	$	132,767

June 30, 2023
Commercial	$	—	$	—	$	2,600	$	2,600	$	15,917	$	18,517
Commercial real estate	—		5,537		—		5,537		13,743		19,280





Total	$	—	$	5,537	$	2,600	$	8,137	$	29,660	$	37,797

During the three and six months ended June 30, 2024, there were payment defaults on $27.0 million of loans to borrowers whose loans were modified due to financial difficulties within the previous twelve months. The payment defaults did not materially impact the allowance for credit losses on loans. There were no payment defaults during the three and six months ended June 30, 2023 on loans that had been modified within the previous twelve months.