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Loans And Allowance For Credit Losses
 3 Months Ended
Mar. 31, 2026
Receivables [Abstract]  
Financing Receivables Loans and Allowance for Credit Losses
Major classifications within the Company’s held for investment loan portfolio at March 31, 2026 and December 31, 2025 are as follows:

(In thousands)
March 31, 2026December 31, 2025
Commercial:
Business$6,750,356 $6,439,380 
Real estate – construction and land1,581,789 1,438,012 
Real estate – business4,059,539 3,674,567 
Personal Banking:
Real estate – personal4,407,606 3,053,435 
Consumer2,475,353 2,196,822 
Revolving home equity619,178 375,159 
Consumer credit card557,733 589,694 
Overdrafts9,510 4,194 
Total loans$20,461,064 $17,771,263 

Accrued interest receivable totaled $78.9 million and $74.4 million at March 31, 2026 and December 31, 2025, respectively, and was included within other assets on the consolidated balance sheets. For the three months ended March 31, 2026, the Company wrote-off accrued interest by reversing interest income of $39 thousand and $1.6 million in the Commercial and Personal Banking portfolios, respectively. For the three months ended March 31, 2025, the Company reversed $112 thousand and $1.7 million in the Commercial and Personal Banking portfolios, respectively.

At March 31, 2026, loans of $3.7 billion were pledged at the Federal Home Loan Bank as collateral for borrowings and letters of credit obtained to secure public deposits. Additional loans of $2.7 billion were pledged at the Federal Reserve Bank as collateral for discount window borrowings.

Allowance for credit losses
The allowance for credit losses is measured using an average historical loss model which incorporates relevant information about past events (including historical credit loss experience on loans with similar risk characteristics), current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual term of the loans. The allowance for credit losses is measured on a collective (pool) basis. Loans are aggregated into pools based on similar risk characteristics including borrower type, collateral type and expected credit loss patterns. Loans that do not share similar risk characteristics, primarily large loans on non-accrual status, are evaluated on an individual basis.

For loans evaluated for credit losses on a collective basis, average historical loss rates are calculated for each pool using the Company’s historical net charge-offs (combined charge-offs and recoveries by observable historical reporting period) and outstanding loan balances during a lookback period. Lookback periods can be different based on the individual pool and represent management’s credit expectations for the pool of loans over the remaining contractual life. In certain loan pools, if the Company’s own historical loss rate is not reflective of the loss expectations, the historical loss rate is augmented by industry and peer data. The calculated average net charge-off rate is then adjusted for current conditions and reasonable and supportable forecasts. These adjustments increase or decrease the average historical loss rate to reflect expectations of future losses given a single path economic forecast of key macroeconomic variables including GDP, disposable income, various interest rates, unemployment rate, consumer price index (CPI) inflation rate, housing price index (HPI), commercial real estate price index (CREPI) and market volatility. The adjustments are based on results from various regression models projecting the impact of the macroeconomic variables to loss rates. The forecast is used for a reasonable and supportable period before reverting back to historical averages using a straight-line method. The forecast-adjusted loss rate is applied to the amortized cost of loans over the remaining contractual lives, adjusted for expected prepayments. The contractual term excludes expected extensions (except for contractual extensions at the option of the customer), renewals and modifications. Credit cards and certain similar consumer lines of credit do not have stated maturities and therefore, for these loan classes, remaining contractual lives are determined by estimating future cash flows expected to be received from customers until payments have been fully allocated to outstanding balances. Additionally, the allowance for credit losses considers other qualitative factors not included in historical loss rates or macroeconomic forecast such as changes in portfolio composition, underwriting practices, or significant unique events or conditions.
Key assumptions in the Company’s allowance for credit loss model include the economic forecast, the reasonable and supportable period, forecasted macro-economic variables, prepayment assumptions and qualitative factors applied for portfolio composition changes, underwriting practices, or significant unique events or conditions. The assumptions utilized in estimating the Company’s allowance for credit losses at March 31, 2026 and December 31, 2025 are discussed below.

Key AssumptionMarch 31, 2026December 31, 2025
Overall economic forecast
•Economy expected to slow but continue to expand
•Slightly increased unemployment due to reduced hiring
•Inflation remains elevated
•Assumes conflict in the Middle East will deescalate in the near term
•Increased GDP due to expected increases in consumer spending
•Stable unemployment
•Higher rates and volatility are expected to continue
Reasonable and supportable period and related reversion period
•Reasonable and supportable period of one year
•Reversion to historical average loss rates within two quarters using a straight-line method
•Reasonable and supportable period of one year
•Reversion to historical average loss rates within two quarters using a straight-line method
Forecasted macro-economic variables
•Unemployment rate ranges from 4.4% to 4.5% during the supportable forecast period
•Real GDP growth ranges from 1.9% to 2.4%
•Housing Price Index from 328.4 to 333.8
•Commercial Real Estate Price Index from 308.8 to 320.4
•CPI inflation rate from 2.8% to 3.9%
•Unemployment rate ranges from 4.3% to 4.5% during the supportable forecast period
•Real GDP growth ranges from 2.1% to 2.8%
•Housing Price Index from 324.9 to 329.7
•Commercial Real Estate Price Index from 292.5 to 305.6
•CPI inflation rate from 2.1% to 2.6%
Prepayment assumptions
Commercial loans
•5% for most loan pools
Personal banking loans
•Ranging from 9.4% to 24.6% for most loan pools
•Consumer credit cards 67.1%
Commercial loans
•5% for most loan pools
Personal banking loans
•Ranging from 8.7% to 24.7% for most loan pools
•Consumer credit cards 66.9%
Qualitative factors
Added qualitative factors related to:
•Changes in the composition of the loan portfolios
•Certain industries experiencing stress or emerging concerns within the portfolio
•Loans downgraded to special mention, substandard, or non-accrual status
•Auto, other vehicle and other consumer portfolios loss expectation adjustment
•Certain portfolios where the model assumptions do not capture all identified loss risk
Added qualitative factors related to:
•Changes in the composition of the loan portfolios
•Certain industries experiencing stress or emerging concerns within the portfolio
•Loans downgraded to special mention, substandard, or non-accrual status
•Auto, other vehicle and other consumer portfolios loss expectation adjustment
•Certain portfolios where the model assumptions do not capture all identified loss risk

The liability for unfunded lending commitments utilizes the same model as the allowance for credit losses on loans, however, the liability for unfunded lending commitments incorporates an assumption for the portion of unfunded commitments that are expected to be funded.

Sensitivity in the Allowance for Credit Loss model
The allowance for credit losses is an estimate that requires significant judgment including projections of the macro-economic environment. The forecasted macro-economic environment continuously changes which can cause fluctuations in the estimate of expected credit losses.

The current forecast includes projections on inflation, labor market trends, Federal Reserve monetary policy, business growth, and consumer spending. Economic, political, and social developments regionally, nationally, and even globally could significantly modify economic projections used in the estimation of the allowance for credit losses. The forecast assumes the conflict in the Middle East will de-escalate within the upcoming months and inflation trends are due to related higher energy prices. Uncertainty around increased unemployment and other negative economic trends is heightened.
Potential changes in any one economic variable may or may not affect the overall allowance because a variety of economic variables and inputs are considered in estimating the allowance, and changes in those variables and inputs may not occur at the same rate, may not be consistent across product types, and may have offsetting impacts to other changing variables and inputs.

A summary of the activity in the allowance for credit losses on loans and the liability for unfunded lending commitments for the three months ended March 31, 2026 and 2025, respectively, follows:

For the Three Months Ended March 31, 2026
(In thousands)CommercialPersonal Banking

Total
ALLOWANCE FOR CREDIT LOSSES ON LOANS
Balance at end of prior period$116,865 $62,603 $179,468 
Initial allowance for credit losses on purchased credit deteriorated loans at acquisition1,533 1,424 2,957 
Initial allowance for credit losses on purchased seasoned loans at acquisition7,722 12,149 19,871 
Provision for credit losses on loans4,763 6,520 11,283 
Deductions:
   Loans charged off5,799 11,418 17,217 
   Less recoveries on loans153 2,090 2,243 
Net loan charge-offs (recoveries)5,646 9,328 14,974 
Balance March 31, 2026$125,237 $73,368 $198,605 
LIABILITY FOR UNFUNDED LENDING COMMITMENTS
Balance at end of prior period$16,539 $1,121 $17,660 
Initial allowance for credit loss at acquisition362 — 362 
Provision for credit losses on unfunded lending commitments(335)12 (323)
Balance March 31, 2026$16,566 $1,133 $17,699 
ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LIABILITY FOR UNFUNDED LENDING COMMITMENTS$141,803 $74,501 $216,304 

For the Three Months Ended March 31, 2025
(In thousands)CommercialPersonal Banking

Total
ALLOWANCE FOR CREDIT LOSSES ON LOANS
Balance at beginning of period$106,769 $55,973 $162,742 
Provision for credit losses on loans354 14,741 15,095 
Deductions:
   Loans charged off726 12,567 13,293 
   Less recoveries on loans303 2,184 2,487 
Net loan charge-offs (recoveries)423 10,383 10,806 
Balance March 31, 2025$106,700 $60,331 $167,031 
LIABILITY FOR UNFUNDED LENDING COMMITMENTS
Balance at beginning of period$17,887 $1,048 $18,935 
Provision for credit losses on unfunded lending commitments(840)232 (608)
Balance March 31, 2025$17,047 $1,280 $18,327 
ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LIABILITY FOR UNFUNDED LENDING COMMITMENTS$123,747 $61,611 $185,358 
Delinquent and non-accrual loans
The Company considers loans past due on the day following the contractual repayment date, if the contractual repayment was not received by the Company as of the end of the business day. The following table provides aging information on the Company’s past due and accruing loans, in addition to the balances of loans on non-accrual status, at March 31, 2026 and December 31, 2025.




(In thousands)
Current or Less Than 30 Days Past Due

30 – 89
Days Past Due
90 Days Past Due and Still AccruingNon-accrual



Total
March 31, 2026
Commercial:
Business$6,745,956 $3,640 $559 $201 $6,750,356 
Real estate – construction and land1,581,250 361 178 — 1,581,789 
Real estate – business4,045,538 4,435 197 9,369 4,059,539 
Personal Banking:
Real estate – personal 4,376,280 20,721 9,289 1,316 4,407,606 
Consumer2,452,149 20,337 2,867 — 2,475,353 
Revolving home equity614,338 3,453 1,353 34 619,178 
Consumer credit card542,359 6,993 8,381 — 557,733 
Overdrafts9,212 298 — — 9,510 
Total $20,367,082 $60,238 $22,824 $10,920 $20,461,064 
December 31, 2025
Commercial:
Business$6,437,476 $1,241 $540 $123 $6,439,380 
Real estate – construction and land1,437,727 285 — — 1,438,012 
Real estate – business3,636,517 23,265 — 14,785 3,674,567 
Personal Banking:
Real estate – personal 3,021,212 19,450 11,931 842 3,053,435 
Consumer2,165,109 28,269 3,444 — 2,196,822 
Revolving home equity373,245 1,493 421 — 375,159 
Consumer credit card573,698 7,673 8,323 — 589,694 
Overdrafts3,787 407 — — 4,194 
Total $17,648,771 $82,083 $24,659 $15,750 $17,771,263 

At March 31, 2026, the Company had $9.1 million non-accrual loans that had no allowance for credit loss, compared to no non-accrual loans that had no allowance for credit loss at December 31, 2025. The Company did not record any interest income on non-accrual loans during the three months ended March 31, 2026 and 2025, respectively.

Credit quality indicators
The following table provides information about the credit quality of the Commercial loan portfolio. The Company utilizes an internal risk rating system comprised of a series of grades to categorize loans according to perceived risk associated with the expectation of debt repayment based on borrower specific information including, but not limited to, current financial information, historical payment experience, industry information, collateral levels and collateral types. The “pass” category consists of a range of loan grades that reflect increasing, though still acceptable, risk. A loan is assigned the risk rating at origination and then monitored throughout the contractual term for possible risk rating changes. Movement of risk through the various grade levels in the “pass” category is monitored for early identification of credit deterioration. The “special mention” rating is applied to loans where the borrower exhibits negative financial trends due to borrower specific or systemic conditions that, if left uncorrected, threaten its capacity to meet its debt obligations. The borrower is believed to have sufficient financial flexibility to react to and resolve its negative financial situation. It is a transitional grade that is closely monitored for improvement or deterioration. The “substandard” rating is applied to loans where the borrower exhibits well-defined weaknesses that jeopardize its continued performance and are of a severity that the distinct possibility of default exists. Loans are placed on “non-accrual” when management does not expect to collect payments consistent with acceptable and agreed upon terms of repayment.

All loans are analyzed for risk rating updates annually. For larger loans, rating assessments may be more frequent if relevant information is obtained earlier through debt covenant monitoring or overall relationship management. Smaller loans
are monitored as identified by the loan officer based on the risk profile of the individual borrower or if the loan becomes past due related to credit issues. Loans rated special mention, substandard or non-accrual are subject to quarterly review and monitoring processes. In addition to the regular monitoring performed by the lending personnel and credit committees, loans are subject to review by a credit review department which verifies the appropriateness of the risk ratings for the loans chosen as part of its risk-based review plan.

The risk category of loans in the Commercial portfolio as of March 31, 2026 and December 31, 2025 are as follows:

Term Loans Amortized Cost Basis by Origination Year
(In thousands)20262025202420232022PriorRevolving Loans Amortized Cost BasisTotal
March 31, 2026
Business
    Risk Rating:
       Pass$440,569 $1,543,502 $805,900 $543,237 $398,031 $548,931 $2,254,771 $6,534,941 
       Special mention— 10,239 24 698 130 400 40,163 51,654 
       Substandard— 22,070 19,481 3,867 14,975 3,480 99,687 163,560 
       Non-accrual— 50 36 114 — 1 — 201 
   Total Business:$440,569 $1,575,861 $825,441 $547,916 $413,136 $552,812 $2,394,621 $6,750,356 
Gross write-offs for the three months ended March 31, 2026
$— $— $— $32 $55 $24 $272 $383 
Real estate-construction
    Risk Rating:
       Pass$156,781 $548,196 $325,625 $252,478 $171,259 $6,032 $23,424 $1,483,795 
       Special mention— 13,942 — 55,816 — — — 69,758 
       Substandard— — — 2,340 25,896 — — 28,236 
    Total Real estate-construction:$156,781 $562,138 $325,625 $310,634 $197,155 $6,032 $23,424 $1,581,789 
Gross write-offs for the three months ended March 31, 2026
$— $— $— $— $— $— $— $— 
Real estate-business
    Risk Rating:
       Pass$329,613 $1,323,163 $424,020 $332,634 $527,246 $783,918 $166,110 $3,886,704 
       Special mention— 43,408 9,899 1,403 2,382 66 3,832 60,990 
       Substandard— 390 973 11,228 31,131 52,377 6,377 102,476 
       Non-accrual— — — — 124 9,245 — 9,369 
   Total Real estate-business:$329,613 $1,366,961 $434,892 $345,265 $560,883 $845,606 $176,319 $4,059,539 
Gross write-offs for the three months ended March 31, 2026
$— $— $— $— $— $5,416 $— $5,416 
Commercial loans
    Risk Rating:
       Pass$926,963 $3,414,861 $1,555,545 $1,128,349 $1,096,536 $1,338,881 $2,444,305 $11,905,440 
       Special mention— 67,589 9,923 57,917 2,512 466 43,995 182,402 
       Substandard— 22,460 20,454 17,435 72,002 55,857 106,064 294,272 
       Non-accrual— 50 36 114 124 9,246 — 9,570 
   Total Commercial loans:$926,963 $3,504,960 $1,585,958 $1,203,815 $1,171,174 $1,404,450 $2,594,364 $12,391,684 
Gross write-offs for the three months ended March 31, 2026
$— $— $— $32 $55 $5,440 $272 $5,799 
Term Loans Amortized Cost Basis by Origination Year
(In thousands)20252024202320222021PriorRevolving Loans Amortized Cost BasisTotal
December 31, 2025
Business
    Risk Rating:
       Pass$1,704,299 $847,973 $568,361 $416,732 $252,398 $336,662 $2,129,247 $6,255,672 
       Special mention13,410 4,149 2,661 1,536 893 1,375 47,568 71,592 
       Substandard96 619 4,713 15,957 4,016 519 86,073 111,993 
       Non-accrual— 49 32 42 — — — 123 
   Total Business:$1,717,805 $852,790 $575,767 $434,267 $257,307 $338,556 $2,262,888 $6,439,380 
Gross write-offs for the year ended December 31, 2025$— $389 $116 $165 $2 $10 $1,423 $2,105 
Real estate-construction
    Risk Rating:
       Pass$450,046 $283,778 $379,456 $239,314 $3,857 $2,860 $18,109 $1,377,420 
       Special mention14,104 — — — — — — 14,104 
       Substandard— — 2,365 25,875 18,248 — — 46,488 
    Total Real estate-construction:$464,150 $283,778 $381,821 $265,189 $22,105 $2,860 $18,109 $1,438,012 
Gross write-offs for the year ended December 31, 2025$— $40 $— $— $— $— $— $40 
Real estate- business
    Risk Rating:
       Pass$1,334,661 $426,130 $309,409 $462,953 $359,933 $389,275 $166,209 $3,448,570 
       Special mention58,905 27,423 3,572 12,221 965 1,965 31 105,082 
       Substandard— 1,884 6,646 26,960 13,423 50,821 6,396 106,130 
       Non-accrual— — — 124 153 14,508 — 14,785 
   Total Real-estate business:$1,393,566 $455,437 $319,627 $502,258 $374,474 $456,569 $172,636 $3,674,567 
Gross write-offs for the year ended December 31, 2025$— $— $400 $— $— $— $— $400 
Commercial loans
    Risk Rating:
       Pass$3,489,006 $1,557,881 $1,257,226 $1,118,999 $616,188 $728,797 $2,313,565 $11,081,662 
       Special mention86,419 31,572 6,233 13,757 1,858 3,340 47,599 190,778 
       Substandard96 2,503 13,724 68,792 35,687 51,340 92,469 264,611 
       Non-accrual— 49 32 166 153 14,508 — 14,908 
   Total Commercial loans:$3,575,521 $1,592,005 $1,277,215 $1,201,714 $653,886 $797,985 $2,453,633 $11,551,959 
Gross write-offs for the year ended December 31, 2025$— $429 $516 $165 $2 $10 $1,423 $2,545 
The credit quality of Personal Banking loans is monitored primarily on the basis of aging/delinquency, and this information is provided as of March 31, 2026 and December 31, 2025 below.

Term Loans Amortized Cost Basis by Origination Year
(In thousands)20262025202420232022PriorRevolving Loans Amortized Cost BasisTotal
March 31, 2026
Real estate-personal
       Current to 90 days past due$153,432 $630,463 $427,638 $462,502 $611,820 $2,100,252 $10,894 $4,397,001 
       Over 90 days past due— — 480 1,610 2,614 4,585 — 9,289 
       Non-accrual— — 3 — — 1,313 — 1,316 
   Total Real estate-personal:$153,432 $630,463 $428,121 $464,112 $614,434 $2,106,150 $10,894 $4,407,606 
Gross write-offs for the three months ended March 31, 2026
$— $— $— $— $— $7 $— $7 
Consumer
       Current to 90 days past due$136,277 $492,593 $212,510 $218,205 $122,293 $141,885 $1,148,723 $2,472,486 
       Over 90 days past due— 266 304 306 146 214 1,631 2,867 
    Total Consumer:$136,277 $492,859 $212,814 $218,511 $122,439 $142,099 $1,150,354 $2,475,353 
Gross write-offs for the three months ended March 31, 2026
$— $412 $593 $580 $256 $138 $584 $2,563 
Revolving home equity
       Current to 90 days past due$— $— $— $— $— $— $617,791 $617,791 
       Over 90 days past due— — — — — — 1,353 1,353 
   Total Revolving home equity:$— $— $— $— $— $— $619,178 $619,178 
Gross write-offs for the three months ended March 31, 2026
$— $— $— $— $— $— $7 $7 
Consumer credit card
       Current to 90 days past due$— $— $— $— $— $— $549,352 $549,352 
       Over 90 days past due— — — — — — 8,381 8,381 
   Total Consumer credit card:$— $— $— $— $— $— $557,733 $557,733 
Gross write-offs for the three months ended March 31, 2026
$— $— $— $— $— $— $8,214 $8,214 
Overdrafts
       Current to 90 days past due$9,510 $— $— $— $— $— $— $9,510 
    Total Overdrafts:$9,510 $— $— $— $— $— $— $9,510 
Gross write-offs for the three months ended March 31, 2026
$628 $— $— $— $— $— $— $628 
Personal banking loans
       Current to 90 days past due$299,219 $1,123,056 $640,148 $680,707 $734,113 $2,242,137 $2,326,760 $8,046,140 
       Over 90 days past due— 266 784 1,916 2,760 4,799 11,365 21,890 
       Non-accrual— — 3 — — 1,313 34 1,350 
   Total Personal banking loans:$299,219 $1,123,322 $640,935 $682,623 $736,873 $2,248,249 $2,338,159 $8,069,380 
Gross write-offs for the three months ended March 31, 2026
$628 $412 $593 $580 $256 $145 $8,805 $11,419 
Term Loans Amortized Cost Basis by Origination Year
(In thousands)20252024202320222021PriorRevolving Loans Amortized Cost BasisTotal
December 31, 2025
Real estate-personal
       Current to 90 days past due$386,816 $312,902 $335,950 $360,793 $438,586 $1,196,850 $8,765 $3,040,662 
       Over 90 days past due— 570 1,581 3,581 1,820 4,379 — 11,931 
       Non-accrual— — — — 102 740 — 842 
   Total Real estate-personal:$386,816 $313,472 $337,531 $364,374 $440,508 $1,201,969 $8,765 $3,053,435 
Gross write-offs for the year ended December 31, 2025$— $47 $65 $416 $48 $29 $— $605 
Consumer
       Current to 90 days past due$520,170 $242,791 $237,779 $132,942 $93,343 $62,726 $903,627 $2,193,378 
       Over 90 days past due187 387 406 276 117 195 1,876 3,444 
    Total Consumer:$520,357 $243,178 $238,185 $133,218 $93,460 $62,921 $905,503 $2,196,822 
Gross write-offs for the year ended December 31, 2025$894 $3,862 $2,948 $1,705 $720 $359 $2,032 $12,520 
Revolving home equity
       Current to 90 days past due$— $— $— $— $— $— $374,738 $374,738 
       Over 90 days past due— — — — — — 421 421 
   Total Revolving home equity:$— $— $— $— $— $— $375,159 $375,159 
Gross write-offs for the year ended December 31, 2025$— $— $— $— $— $— $15 $15 
Consumer credit card
       Current to 90 days past due$— $— $— $— $— $— $581,371 $581,371 
       Over 90 days past due— — — — — — 8,323 8,323 
   Total Consumer credit card:$— $— $— $— $— $— $589,694 $589,694 
Gross write-offs for the year ended December 31, 2025$— $— $— $— $— $— $31,833 $31,833 
Overdrafts
       Current to 90 days past due$4,194 $— $— $— $— $— $— $4,194 
    Total Overdrafts:$4,194 $— $— $— $— $— $— $4,194 
Gross write-offs for the year ended December 31, 2025$2,522 $— $— $— $— $— $— $2,522 
Personal banking loans
       Current to 90 days past due$911,180 $555,693 $573,729 $493,735 $531,929 $1,259,576 $1,868,501 $6,194,343 
       Over 90 days past due187 957 1,987 3,857 1,937 4,574 10,620 24,119 
       Non-accrual— — — — 102 740 — 842 
   Total Personal banking loans:$911,367 $556,650 $575,716 $497,592 $533,968 $1,264,890 $1,879,121 $6,219,304 
Gross write-offs for the year ended December 31, 2025$3,416 $3,909 $3,013 $2,121 $768 $388 $33,880 $47,495 
Collateral-dependent loans
The Company's collateral-dependent loans are comprised of large loans on non-accrual status. The Company requires that collateral-dependent loans are either over-collateralized or carry collateral equal to the amortized cost of the loan. The following table presents the amortized cost basis of collateral-dependent loans as of March 31, 2026 and December 31, 2025.

(In thousands)Real EstateTotal
March 31, 2026
Commercial:
  Real estate - business$9,092 $9,092 
Total$9,092 $9,092 
December 31, 2025
Commercial:
Real estate - business$14,508 $14,508 
Total$14,508 $14,508 

Modifications for borrowers experiencing financial difficulty
When borrowers are experiencing financial difficulty, the Company may agree to modify the contractual terms of a loan to a borrower in order to assist the borrower in repaying principal and interest owed to the Company.

The Company's modifications of loans to borrowers experiencing financial difficulty are generally in the form of term extensions, repayment plans, payment deferrals, forbearance agreements, interest rate reductions, forgiveness of interest and/or fees, or any combination thereof. Commercial loans modified to borrowers experiencing financial difficulty are primarily loans that are substandard or non-accrual, where the maturity date was extended. Modifications on personal real estate loans are primarily those placed on forbearance plans, repayment plans, or deferral plans where monthly payments are suspended for a period of time or past due amounts are paid off over a certain period of time in the future or set up as a balloon payment at maturity. Modifications to certain credit card and other small consumer loans are often modified under debt counseling programs that can reduce the contractual rate or, in certain instances, forgive certain fees and interest charges. Other consumer loans modified to borrowers experiencing financial difficulty consist of various other workout arrangements with consumer customers.

The following tables present the amortized cost at March 31, 2026 of loans that were modified during the three months ended March 31, 2026 and the amortized cost at March 31, 2025 of loans that were modified during the three months ended March 31, 2025.
For the Three Months Ended March 31, 2026



(Dollars in thousands)
Term ExtensionPayment DelayInterest Rate ReductionTotal% of Total Loan Category
March 31, 2026
Commercial:
Business$62,272 $— $— $62,272 0.9 %
Real estate – construction and land2,340 — — 2,340 0.1 
Real estate – business533 — — 533 — 
Personal Banking:
Real estate – personal — 801 — 801 — 
Consumer— — 22 22 — 
Consumer credit card— — 902 902 0.2 
Total $65,145 $801 $924 $66,870 0.3 %
For the Three Months Ended March 31, 2025



(Dollars in thousands)
Term ExtensionPayment DelayInterest Rate ReductionTotal% of Total Loan Category
March 31, 2025
Commercial:
Business$54,539 $— $— $54,539 0.9 %
Real estate – business76,958 — — 76,958 2.1 
Personal Banking:
Real estate – personal — 3,884 — 3,884 0.1 
Consumer— — 67 67 — 
Consumer credit card— — 880 880 0.2 
Total $131,497 $3,884 $947 $136,328 0.8 %

The estimate of lifetime expected losses utilized in the allowance for credit losses model is developed using average historical experience on loans with similar risk characteristics, which includes losses from modifications of loans to borrowers experiencing financial difficulty. As a result, a change to the allowance for credit losses is generally not recorded upon modification. For modifications to loans made to borrowers experiencing financial difficulty that are placed on non-accrual status, the Company determines the allowance for credit losses on an individual evaluation, using the same process that it utilizes for other loans on non-accrual status. Modifications made to commercial loans which are not on non-accrual status for borrowers experiencing financial difficulty are collectively evaluated based on internal risk rating, loan type, delinquency, historical experience, and current economic factors. Modifications made to borrowers experiencing financial difficulty for personal banking loans which are not on non-accrual status are collectively evaluated based on loan type, delinquency, historical experience, and current economic factors.

If a loan to a borrower experiencing financial difficulty is modified and subsequently deemed uncollectible, the allowance for credit losses continues to be based on individual evaluation, if that loan is already on non-accrual status. For those loans, the allowance for credit losses is estimated using discounted expected cash flows or the fair value of collateral. If an accruing loan made to a borrower experiencing financial difficulty is modified and subsequently deemed uncollectible, the loan's risk rating is downgraded to non-accrual status and the loan's related allowance for credit losses is determined based on individual evaluation, or if necessary, the loan is charged off and collection efforts begin.

The following tables summarize the financial impact of loan modifications and payment deferrals during the three months ended March 31, 2026 and March 31, 2025.

Term Extension
Three Months Ended March 31, 2026Three Months Ended March 31, 2025
Commercial:
Business
Extended maturity by a weighted average of 11 months.
Extended maturity by a weighted average of 7 months.
Real estate – construction and land
Extended maturity by a weighted average of 11 months.
---
Real estate – business
Extended maturity by a weighted average of 8 months.
Extended maturity by a weighted average of 18 months.


Payment Delay
Three Months Ended March 31, 2026Three Months Ended March 31, 2025
Personal Banking:
Real estate – personal
Deferred certain payments by a weighted average of 26 years.
Deferred certain payments by a weighted average of 16 years.
Consumer
Deferred certain payments by a weighted average of 26 years.
---
Interest Rate Reduction
Three Months Ended March 31, 2026Three Months Ended March 31, 2025
Personal Banking:
ConsumerReduced contractual interest rate from average 22% to 6%.Reduced contractual interest rate from average 21% to 6%.
Consumer credit cardReduced contractual interest rate from average 22% to 6%.Reduced contractual interest rate from average 21% to 6%.


The Company had commitments of $13.3 million and $11.4 million at March 31, 2026 and December 31, 2025, respectively, to lend additional funds to borrowers experiencing financial difficulty and for whom the Company has modified the terms of loans in the form of an interest rate reduction; an other-than-insignificant payment delay; forgiveness of principal, interest, or fees; or a term extension during the current reporting period.

The following tables provide the amortized cost basis at March 31, 2026 of loans to borrowers experiencing financial difficulty that had a payment default during the three months ended March 31, 2026 and were modified within the 12 months preceding the payment default, as well as the amortized cost basis at March 31, 2025 of loans to borrowers experiencing financial difficulty that had a payment default during the three months ended March 31, 2025 and had been modified within the 12 months preceding the payment default. For purposes of this disclosure, the Company considers "default" to mean 90 days or more past due as to interest or principal.

For the Three Months Ended March 31, 2026


(Dollars in thousands)		Term ExtensionPayment DelayInterest Rate ReductionInterest/Fees ForgivenTotal
March 31, 2026
Commercial:
Real estate – business$9,093 $— $— $— $9,093 
Personal Banking:
Real estate – personal — 144 — — 144 
Consumer— 34 8 — 42 
Consumer credit card— — 276 — 276 
Total $9,093 $178 $284 $— $9,555 
For the Three Months Ended March 31, 2025


(Dollars in thousands)
Term ExtensionPayment DelayInterest Rate ReductionInterest/Fees ForgivenTotal
March 31, 2025
Commercial:
Real estate – business$14,667 $— $— $— $14,667 
Personal Banking:
Real estate – personal — 1,762 — — 1,762 
Consumer— — 33 — 33 
Consumer credit card— — 218 — 218 
Total $14,667 $1,762 $251 $— $16,680 


The following tables present the amortized cost basis at March 31, 2026 of loans to borrowers experiencing financial difficulty that had been modified within the previous 12 months as well as the amortized cost basis at March 31, 2025 of loans to borrowers experiencing financial difficulty that had been modified within the 12 months preceding March 31, 2025.


(In thousands)
Current
30-89 Days Past Due
90 Days Past DueTotal
March 31, 2026
Commercial:
Business$90,748 $200 $— $90,948 
Real estate – construction and land2,340 — — 2,340 
Real estate – business2,260 — 9,092 11,352 
Personal Banking:
Real estate – personal 5,808 1,705 144 7,657 
Consumer93 4 45 142 
Consumer credit card2,368 420 274 3,062 
Total $103,617 $2,329 $9,555 $115,501 



(In thousands)
Current
30-89 Days Past Due
90 Days Past DueTotal
March 31, 2025
Commercial:
Business$89,831 $44 $— $89,875 
Real estate – business124,311 124 14,667 139,102 
Personal Banking:
Real estate – personal 7,008 2,762 1,763 11,533 
Consumer852 17 33 902 
Consumer credit card2,418 445 218 3,081 
Total $224,420 $3,392 $16,681 $244,493 


Loans held for sale
The Company designates certain long-term fixed rate personal real estate loans as held for sale, and the Company has elected the fair value option for these loans. The election of the fair value option aligns the accounting for these loans with the related economic hedges discussed in Note 12. The loans are primarily sold to Federal Home Loan Mortgage Corporation (FHLMC) and Federal National Mortgage Association (FNMA). At March 31, 2026, the fair value of these loans was $1.7 million, and the unpaid principal balance was $1.6 million.

At March 31, 2026, none of the loans held for sale were on non-accrual status or 90 days past due and still accruing interest.
Foreclosed real estate/repossessed assets
The Company’s holdings of foreclosed real estate totaled $678 thousand and $1.2 million at March 31, 2026 and December 31, 2025, respectively, and included in those amounts were $678 thousand and $1.0 million at March 31, 2026 and December 31, 2025, respectively, of foreclosed residential real estate properties held as a result of obtaining physical possession. Personal property acquired in repossession, generally autos, totaled $2.8 million and $2.3 million at March 31, 2026 and December 31, 2025. Upon acquisition, these assets are recorded at fair value less estimated selling costs at the date of foreclosure, establishing a new cost basis. They are subsequently carried at the lower of this cost basis or fair value less estimated selling costs.