The ACL represents management's estimate of lifetime credit losses for assets within its scope, specifically loans and leases and unfunded commitments. To calculate the ACL, management uses models to estimate the PD and LGD for loans utilizing inputs that include forecasted future economic conditions and that are dependent upon specific macroeconomic variables relevant to each of the Bank's loan and lease portfolios. Moody's Analytics, a third party, provided the historical and forward-looking macroeconomic data utilized in the models used to calculate the ACL.

All forecasts are updated for each variable where applicable and incorporated as relevant into the ACL calculation. Actual credit loss results and the timing thereof will differ from the estimate of credit losses, either in a strong economy or a recession, as the portfolio will change through time due to growth, risk mitigation actions and other factors. In addition, the scenarios used will differ and change through time as economic conditions change. Economic scenarios might not capture deterioration or improvement in the economy timely enough for the Bank to be able to adequately address the impact to the ACL.

The ACL is measured on a collective (pool) basis when similar characteristics exist. The Company has selected models at the portfolio level using a risk-based approach, with larger, more complex portfolios having more complex models. Except as noted below, the macroeconomic variables that are inputs to the models are reasonable and supportable over the life of the loans in that they reasonably project the key economic variables in the near term and then converge to a long-run equilibrium trend. These models produce reasonable and supportable estimates of loss over the life of the loans as the projected credit losses will also converge to a steady state in line with the variables applied.

Commercial Real Estate: Non-owner occupied commercial real estate, multifamily, and commercial construction loans are analyzed using a model that uses four primary property variables: net operating income, property value, property type, and location. For PD estimation, the model simulates potential future paths of net operating income given commercial real estate market factors determined from macroeconomic and regional commercial real estate forecasts. Using the resulting expected debt service coverage ratios, together with predicted loan-to-values and other variables, the model estimates PD from the range of conditional possibilities. In addition, the model estimates maturity PD capturing refinance default risk to produce a total PD for the loan. The model estimates LGD, inclusive of principal loss and liquidation expenses, empirically using predicted loan-to-value as well as certain market and other factors. The LGD calculation also includes a separate maturity risk component. The primary economic drivers in the model are GDP growth, U.S. unemployment rate, and 10-Year Treasury yield. These economic drivers are translated into a forecast, provided by Moody's Analytics' REIS, of real estate metrics, such as rental rates, vacancies, and cap rates. The model produces PD and LGD on a quarter-by-quarter basis for the life of loan.

The owner-occupied commercial real estate portfolio utilizes a top-down macroeconomic model using logistic regression. This model produces portfolio level quarterly net charge-off rates according to the macroeconomic scenario over a reasonable and supportable two-year forecast. The primary economic drivers for this model are commercial real estate price index and a five-state average unemployment rate. The model utilizes output reversion methodology, which after two years reverts on a straight-line basis over one year to the long run historical average net charge off rate.

Commercial: Non-homogeneous commercial loans and leases and residential development loans are analyzed in a multi-step process. An initial PD is estimated using a model driven by an obligor's selected financial statement ratios, together with cycle-adjusting information based on the obligor's state and industry. An initial LGD is derived separately based on collateral type using collateral value and a haircut to reflect the loss in liquidation. Another model then applies an auto-regression technique to the initial PD and LGD metrics to estimate the PD and LGD curves according to the macroeconomic scenario. The primary economic drivers in the model are GDP growth and commercial real estate price index.

The model for the homogeneous lease and equipment finance agreement portfolio uses lease and equipment finance agreement information, such as origination and performance, as well as macroeconomic variables to calculate PD and LGD values. The PD calculation is based on survival analysis while LGD is calculated using a two-step regression. The model calculates LGD using an estimate of the probability that a defaulted lease or equipment finance agreement will have a loss, and an estimate of the loss amount. The primary economic drivers for the model are U.S. unemployment rate, the 5-year treasury rate, value of construction put in place, consumer price index, and a home price growth index. The model produces PD and LGD curves at the lease or equipment finance agreement level for each month in the forecast horizon.

Residential: The models for residential real estate and HELOCs utilize loan level variables, such as origination and performance, as well as macroeconomic variables to calculate PD and LGD. The U.S. unemployment rate and home price growth rate indexes are primary economic drivers in both the residential real estate and HELOC models. In addition, the prime rate is also a primary driver in the HELOC model. The models focus on establishing an empirical relationship between default probabilities and a set of loan-level, borrower, and macroeconomic credit risk drivers. The LGD calculation for residential real estate is based on an estimate of the probability that a defaulted loan will have a loss, and then an estimate of the loss amount. HELOCs utilize the same model using residential real estate LGD values to assign loans to cohorts based on FICO scores and loan age. The model produces PD and LGD curves at the loan level for each quarter in the forecast horizon.

Loans and leases that have not been included in the primary models based on portfolio type are assigned a loss rate through an extrapolation methodology. This methodology applies to certain real estate loans acquired through mergers, newly originated loans and leases, and those lacking the detailed data required for the primary models. The extrapolation methodology involves calculating loss rates through the primary modeling process. These loss rates are determined based on the vintage year, credit classification, and reporting category of the loans and leases. The calculated loss factors are then applied to the excluded loans and leases and evaluated qualitatively to ensure reasonability and compliance with CECL.

The Company evaluated each qualitative factor as of September 30, 2024 and applied upward adjustments to the quantitative results for the ACL, as compared to downward adjustments as of December 31, 2023. The majority of the qualitative overlays in the period are centered in the commercial loan portfolio, more closely aligning the portfolio with the S2 scenario as discussed above and additional overlays for the transportation segment of the lease portfolio. While qualitative overlays are applied, the majority of the allowance is driven by modeled results, as management determined that the models adequately reflect the significant changes in credit conditions and overall portfolio risk.

Loss factors from the models, prepayment speeds, and qualitative factors are input into the Company's CECL accounting application, which aggregates the information. The Company then uses two methods to calculate the current expected credit loss: 1) the DCF method, which is used for all loans except lines of credit and 2) the non-DCF method, which is used for lines of credit due to the difficulty of calculating an effective interest rate when lines have yet to be drawn on. The DCF method utilizes the effective interest rate of individual assets to discount the expected credit losses adjusted for prepayments. The difference in the net present value and the amortized cost of the asset will result in the required allowance. The non-DCF method uses the exposure at default, along with the expected credit losses adjusted for prepayments to calculate the required allowance.

The following tables summarize activity related to the ACL by portfolio segment for the periods indicated:


	Three Months Ended September 30, 2024
(in thousands)	Commercial Real Estate		Commercial		Residential		Consumer & Other		Total
Allowance for credit losses on loans and leases
Balance, beginning of period	$	143,146	$	219,714	$	48,885	$	6,926	$	418,671
Provision (recapture) for credit losses for loans and leases	15,026		16,710		(2,520)		1,282		30,498
Charge-offs	—		(32,645)		(936)		(1,395)		(34,976)
Recoveries	44		5,258		143		416		5,861
Net recoveries (charge-offs)	44		(27,387)		(793)		(979)		(29,115)
Balance, end of period	$	158,216	$	209,037	$	45,572	$	7,229	$	420,054
Reserve for unfunded commitments
Balance, beginning of period	$	9,946	$	6,547	$	2,278	$	1,157	$	19,928
(Recapture) provision for credit losses on unfunded commitments	(2,188)		509		(156)		106		(1,729)
Balance, end of period	7,758		7,056		2,122		1,263		18,199
Total allowance for credit losses	$	165,974	$	216,093	$	47,694	$	8,492	$	438,253

	Nine Months Ended September 30, 2024
(in thousands)	Commercial Real Estate		Commercial		Residential		Consumer & Other		Total
Allowance for credit losses on loans and leases
Balance, beginning of period	$	125,888	$	244,821	$	62,004	$	8,158	$	440,871
Provision (recapture) for credit losses for loans and leases	32,121		63,466		(15,226)		2,373		82,734
Charge-offs	(746)		(113,438)		(1,930)		(4,816)		(120,930)
Recoveries	953		14,188		724		1,514		17,379
Net recoveries (charge-offs)	207		(99,250)		(1,206)		(3,302)		(103,551)
Balance, end of period	$	158,216	$	209,037	$	45,572	$	7,229	$	420,054
Reserve for unfunded commitments
Balance, beginning of period	$	11,170	$	7,841	$	2,940	$	1,257	$	23,208
(Recapture) provision for credit losses on unfunded commitments	(3,412)		(785)		(818)		6		(5,009)
Balance, end of period	7,758		7,056		2,122		1,263		18,199
Total allowance for credit losses	$	165,974	$	216,093	$	47,694	$	8,492	$	438,253


	Three Months Ended September 30, 2023
(in thousands)	Commercial Real Estate		Commercial		Residential		Consumer & Other		Total
Allowance for credit losses on loans and leases
Balance, beginning of period	$	118,954	$	211,651	$	65,941	$	8,057	$	404,603
Provision (recapture) for credit losses for loans and leases	2,734		35,952		(4,619)		1,015		35,082
Charge-offs	—		(26,629)		(206)		(1,884)		(28,719)
Recoveries	31		4,901		156		506		5,594
Net recoveries (charge-offs)	31		(21,728)		(50)		(1,378)		(23,125)
Balance, end of period	$	121,719	$	225,875	$	61,272	$	7,694	$	416,560
Reserve for unfunded commitments
Balance, beginning of period	$	10,000	$	5,821	$	3,018	$	988	$	19,827
(Recapture) provision for credit losses on unfunded commitments	(11)		1,579		67		20		1,655
Balance, end of period	9,989		7,400		3,085		1,008		21,482
Total allowance for credit losses	$	131,708	$	233,275	$	64,357	$	8,702	$	438,042

	Nine Months Ended September 30, 2023
(in thousands)	Commercial Real Estate		Commercial		Residential		Consumer & Other		Total
Allowance for credit losses on loans and leases
Balance, beginning of period	$	77,813	$	167,135	$	50,329	$	5,858	$	301,135
Initial ACL on PCD loans acquired during the period	8,736		17,204		454		98		26,492
Provision for credit losses for loans and leases (1)	35,046		106,979		10,605		4,166		156,796
Charge-offs	(174)		(77,913)		(458)		(3,921)		(82,466)
Recoveries	298		12,470		342		1,493		14,603
Net recoveries (charge-offs)	124		(65,443)		(116)		(2,428)		(67,863)
Balance, end of period	$	121,719	$	225,875	$	61,272	$	7,694	$	416,560
Reserve for unfunded commitments
Balance, beginning of period	$	7,207	$	3,049	$	3,196	$	769	$	14,221
Initial ACL recorded for unfunded commitments acquired during the period	2,257		3,066		268		176		5,767
Provision (recapture) for credit losses on unfunded commitments	525		1,285		(379)		63		1,494
Balance, end of period	9,989		7,400		3,085		1,008		21,482
Total allowance for credit losses	$	131,708	$	233,275	$	64,357	$	8,702	$	438,042

The Bank manages asset quality and controls credit risk through diversification of the loan and lease portfolio and the application of policies designed to promote sound underwriting and loan and lease monitoring practices. The Bank's Credit Quality Administration department is charged with monitoring asset quality, establishing credit policies and procedures, and enforcing the consistent application of these policies and procedures across the Bank. Reviews of non-performing, past due loans and leases and larger credits, designed to identify potential charges to the allowance for credit losses, and to determine the adequacy of the allowance, are conducted on an ongoing basis. These reviews consider such factors as the financial strength of borrowers, the value of the applicable collateral, loan and lease loss experience, estimated loan and lease losses, growth in the loan and lease portfolio, prevailing economic conditions, and other factors.

Typically, loans in a non-accrual status will not have an allowance for credit loss as they will be written down to their net realizable value or charged-off. However, the net realizable value for homogeneous leases and equipment finance agreements is determined by the LGD calculated by the CECL model and therefore leases and equipment finance agreements on non-accrual will have an allowance for credit losses until they become 181 days past due, at which time they are charged-off. The Company recognized no interest income on non-accrual loans and leases during the three and nine months ended September 30, 2024 and 2023.

The following tables present the carrying value of the loans and leases past due, by loan and lease class, as of the dates presented:


	September 30, 2024
(in thousands)	Greater than 30 to 59 Days Past Due		60 to 89 Days Past Due		90 Days or More and Accruing (2)		Total Past Due		Non-Accrual (2)		Current and Other		Total Loans and Leases
Commercial real estate
Non-owner occupied term, net	$	1,510	$	203	$	136	$	1,849	$	4,816	$	6,385,141	$	6,391,806
Owner occupied term, net	456		231		—		687		32,516		5,177,282		5,210,485
Multifamily, net	—		—		—		—		—		5,779,737		5,779,737
Construction & development, net	—		—		—		—		—		1,988,923		1,988,923
Residential development, net	—		—		—		—		—		244,579		244,579
Commercial
Term, net	1,944		1,942		123		4,009		30,304		5,394,896		5,429,209
Lines of credit & other, net	3,318		518		—		3,836		7,820		2,629,013		2,640,669
Leases & equipment finance, net	15,031		15,919		5,889		36,839		23,340		1,610,248		1,670,427
Residential
Mortgage, net (1)	—		14,692		59,301		73,993		—		5,870,741		5,944,734
Home equity loans & lines, net	6,838		3,505		4,336		14,679		—		2,002,657		2,017,336
Consumer & other, net	950		253		317		1,520		—		183,577		185,097
Total, net of deferred fees and costs	$	30,047	$	37,263	$	70,102	$	137,412	$	98,796	$	37,266,794	$	37,503,002


	December 31, 2023
(in thousands)	Greater than 30 to 59 Days Past Due		60 to 89 Days Past Due		90 Days or More and Accruing (2)		Total Past Due		Non-Accrual (2)		Current and Other		Total Loans and Leases
Commercial real estate
Non-owner occupied term, net	$	1,270	$	3,312	$	437	$	5,019	$	4,359	$	6,473,562	$	6,482,940
Owner occupied term, net	3,078		2,191		433		5,702		24,330		5,165,573		5,195,605
Multifamily, net	—		—		—		—		—		5,704,734		5,704,734
Construction & development, net	—		—		—		—		—		1,747,302		1,747,302
Residential development, net	—		—		—		—		—		323,899		323,899
Commercial
Term, net	6,341		2,101		202		8,644		14,519		5,513,602		5,536,765
Lines of credit & other, net	1,647		1,137		66		2,850		2,760		2,424,517		2,430,127
Leases & equipment finance, net	22,217		24,178		7,965		54,360		28,403		1,646,749		1,729,512
Residential
Mortgage, net (1)	282		9,410		26,331		36,023		—		6,121,143		6,157,166
Home equity loans & lines, net	4,401		2,373		3,782		10,556		—		1,927,610		1,938,166
Consumer & other, net	778		519		326		1,623		—		194,112		195,735
Total, net of deferred fees and costs	$	40,014	$	45,221	$	39,542	$	124,777	$	74,371	$	37,242,803	$	37,441,951

Loans and leases are classified as collateral-dependent when it is probable that the Bank will be unable to collect the scheduled payments of principal and interest when due, and repayment is expected to be provided substantially through the operation or sale of the collateral. There have been no significant changes in the level of collateralization from the prior periods. The following table summarizes the amortized cost basis of the collateral-dependent loans and leases by the type of collateral securing the assets as of September 30, 2024:


(in thousands)	Residential Real Estate		Commercial Real Estate		General Business Assets		Other		Total
Commercial real estate
Non-owner occupied term, net	$	—	$	4,121	$	—	$	—	$	4,121
Owner occupied term, net	—		28,610		—		—		28,610



Commercial
Term, net	2,335		2,919		17,290		580		23,124
Line of credit & other, net	—		3,066		3,651		—		6,717
Leases & equipment finance, net	—		—		23,340		—		23,340
Residential
Mortgage, net	75,166		—		—		—		75,166
Home equity loans & lines, net	2,406		—		—		—		2,406

Total, net of deferred fees and costs	$	79,907	$	38,716	$	44,281	$	580	$	163,484

Occasionally, the Company offers modifications of loans or leases to borrowers experiencing financial difficulty by providing term extensions, interest rate reductions, principal or interest forgiveness, an other-than-insignificant payment delay, or any combination of these modifications. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted. For the loans included in the "combination" columns below, multiple types of modifications have been made on the same loan within the current reporting period. The combination is at least two of the following: term extension, principal forgiveness, an other-than-insignificant payment delay, or an interest rate reduction. The ACL on modified loans or leases is measured using the same credit loss estimation methods used to determine the ACL for all other loans and leases held for investment. These methods incorporate the post-modification loan or lease terms, as well as defaults and charge-offs associated with historical modified loans and leases.


	Nine Months Ended September 30, 2024
(in thousands)	Interest Rate Reduction		Term Extension		Other -Than-Insignificant Payment Delay		Total		% of total class of financing receivable
Commercial real estate
Non-owner occupied term, net	$	—	$	—	$	17,521	$	17,521	0.27	%
Owner occupied term, net	4,041		—		528		4,569		0.09	%

Construction & development, net	—		1,985		—		1,985		0.10	%

Commercial
Term, net	1,175		6,337		1,449		8,961		0.17	%
Lines of credit & other, net	—		11,923		494		12,417		0.47	%
Leases & equipment finance, net	—		2,164		—		2,164		0.13	%
Residential
Mortgage, net	—		4,500		14,898		19,398		0.33	%


Total modified loans and leases experiencing financial difficulty	$	5,216	$	26,909	$	34,890	$	67,015	0.18	%


	Nine Months Ended September 30, 2023
(in thousands)	Interest Rate Reduction		Term Extension		Other -Than-Insignificant Payment Delay		Combination - Term Extension and Other-than-Insignificant Payment Delay		Total		% of total class of financing receivable
Commercial real estate

Owner occupied term, net	$	666	$	—	$	—	$	—	$	666	0.01	%



Commercial
Term, net	377		483		—		—		860		0.02	%
Lines of credit & other, net	—		4,333		—		—		4,333		0.18	%
Leases & equipment finance, net	—		1,515		—		—		1,515		0.09	%
Residential
Mortgage, net	—		451		35,031		5,703		41,185		0.67	%


Total modified loans and leases experiencing financial difficulty	$	1,043	$	6,782	$	35,031	$	5,703	$	48,559	0.13	%

The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2024 and 2023:

Three Months Ended September 30, 2024

Term Extension

Other-Than-Insignificant Payment Delay

(dollars in thousands)

Weighted-Average Term Extension

Deferral Amount

Commercial real estate

Construction & development, net

7 months

—

Commercial

Term, net

1.8 years

299

Lines of credit & other, net

7 months

—

Leases & equipment finance, net

12 months

—

Residential

Mortgage, net

7.3 years


	Nine Months Ended September 30, 2024
	Interest Rate Modification		Term Extension	Other-Than-Insignificant Payment Delay
(dollars in thousands)	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension	Deferral Amount
Commercial real estate
Non-owner occupied term, net	—		—	$	3,969
Owner occupied term, net	3.79	%	—	$	51

Construction & development, net	—		7 months	—

Commercial
Term, net	5.00	%	11 months	$	376
Lines of credit & other, net	—		8 months	$	111
Leases & equipment finance, net	—		11 months	—
Residential
Mortgage, net	—		7.5 years	$	1,057

The Company closely monitors the performance of loans and leases that are modified for borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. Loans and leases are considered to be in payment default at 90 or more days past due. The following tables present the amortized cost basis of modified loans as of September 30, 2024 that, within twelve months of the modification date, experienced a subsequent default during the periods presented:


	Three Months Ended September 30, 2024
(in thousands)			Term Extension				Other-Than-Insignificant Payment Delay				Combination - Interest Rate Reduction and Term Extension				Total






Commercial

Lines of credit & other, net	$	—			$	—			$	1,305			$	1,305
Leases & equipment finance, net			161				—				—				161
Residential
Mortgage, net			435				3,887				—				4,322


Total loans and leases experiencing financial difficulty with a subsequent default			$	596			$	3,887			$	1,305			$	5,788


	Nine Months Ended September 30, 2024
(in thousands)	Interest Rate Reduction		Term Extension		Other-Than-Insignificant Payment Delay		Combination - Interest Rate Reduction and Term Extension		Total
Commercial real estate

Owner occupied term, net	$	3,064	$	—	$	—	—		$	3,064



Commercial

Lines of credit & other, net	—		—		—		1,305		1,305
Leases & equipment finance, net	—		161		—		—		161
Residential
Mortgage, net	—		491		4,508		—		4,999


Total loans and leases experiencing financial difficulty with a subsequent default	$	3,064	$	652	$	4,508	$	1,305	$	9,529

The following tables present an age analysis of loans and leases as of September 30, 2024 that have been modified within the prior twelve months and as of September 30, 2023 that have been modified since January 1, 2023, the date of the adoption of ASU 2022-02:


	September 30, 2024
Loan Type	Current		Greater than 30 to 59 Days Past Due		60 to 89 Days Past Due		90 Days or Greater Past Due		Nonaccrual		Total
(in thousands)
Commercial real estate
Non-owner occupied term, net	$	47,321	$	—	$	—	$	—	$	—	$	47,321
Owner occupied term, net	2,006		—		—		—		3,592		5,598

Construction & development, net	1,985		—		—		—		—		1,985

Commercial
Term, net	9,540		—		—		—		1,175		10,715
Lines of credit & other, net	50,917		119		—		—		1,500		52,536
Leases & equipment finance, net	1,570		206		361		99		62		2,298
Residential
Mortgage, net	22,564		—		2,206		4,527		—		29,297


Total loans and leases, net of deferred fees and costs	$	135,903	$	325	$	2,567	$	4,626	$	6,329	$	149,750


	September 30, 2023
Loan Type	Current		Greater than 30 to 59 Days Past Due		60 to 89 Days Past Due		90 Days or Greater Past Due		Nonaccrual		Total
(in thousands)
Commercial real estate

Owner occupied term, net	$	—	$	—	$	—	$	—	$	666	$	666



Commercial
Term, net	94		—		389		—		377		860
Lines of credit & other, net	3,426		—		—		288		619		4,333
Leases & equipment finance, net	1,153		117		72		53		120		1,515
Residential
Mortgage, net	39,102		—		285		1,798		—		41,185


Total loans and leases, net of deferred fees and costs	$	43,775	$	117	$	746	$	2,139	$	1,782	$	48,559

Management regularly reviews loans and leases in the portfolio to assess credit quality indicators and to determine appropriate loan classification and grading. The Bank differentiates its lending portfolios into homogeneous and non-homogeneous loans and leases. Homogeneous loans and leases are initially risk rated on a single risk rating scale based on the past due status of the loan or lease. Homogeneous loans and leases that have risk-based modifications or forbearances enter into an alternative elevated risk rating scale that freezes the elevated risk rating and requires six consecutive months of scheduled payments without delinquency before the loan or lease can return to the delinquency-based risk rating scale.

The Bank's risk rating methodology for its non-homogeneous loans and leases uses a dual risk rating approach to assess the credit risk. This approach uses two scales to provide a comprehensive assessment of credit default risk and recovery risk. The probability of default scale measures a borrower's credit default risk using risk ratings ranging from 1 to 16, where a higher rating represents higher risk. For non-homogeneous loans and leases, PD ratings of 1 through 9 are "pass" grades, while PD ratings of 10 and 11 are "watch" grades. PD ratings of 12-16 correspond to the regulatory-defined categories of special mention (12), substandard (13-14), doubtful (15), and loss (16). The loss given default scale measures the amount of loss that may not be recovered in the event of a default, using six alphabetic ratings from A-F, where a higher rating represents higher risk. The LGD scale quantifies recovery risk associated with an event of default and predicts the amount of loss that would be incurred on a loan or lease if a borrower were to experience a major default and includes variables that may be external to the borrower, such as industry, geographic location, and credit cycle stage. It could also include variables specific to the loan or lease, including collateral valuation, covenant structure and debt type. The product of the borrower's PD and a loan or lease LGD is the loan or lease expected loss, expressed as a percentage. This provides a common language of credit risk across different loans.

The following tables represent the amortized costs basis of the loans and leases by credit classification and vintage year by loan and lease class of financing receivable as of the dates presented:


(in thousands)		Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Revolving to Non-Revolving Loans Amortized Cost
	September 30, 2024	2024		2023		2022		2021		2020		Prior						Total
Commercial real estate:
Non-owner occupied term, net
Credit quality indicator:
	Pass/Watch	$	238,149	$	575,610	$	1,255,121	$	1,139,423	$	577,439	$	2,398,374	$	36,761	$	12,660	$	6,233,537
	Special mention	—		—		6,836		1,234		465		21,433		—		—		29,968
	Substandard	17,521		29,800		21,756		—		—		58,417		—		—		127,494
	Doubtful	—		—		—		807		—		—		—		—		807

Total non-owner occupied term, net		$	255,670	$	605,410	$	1,283,713	$	1,141,464	$	577,904	$	2,478,224	$	36,761	$	12,660	$	6,391,806
Current YTD period:
	Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	86	$	—	$	—	$	86
Owner occupied term, net
Credit quality indicator:
	Pass/Watch	$	332,263	$	517,212	$	1,044,934	$	907,721	$	421,179	$	1,705,736	$	76,944	$	52	$	5,006,041
	Special mention	1,216		977		7,906		14,100		7,108		33,676		1,923		—		66,906
	Substandard	4,946		5,352		4,645		51,236		19,704		46,372		—		—		132,255
	Doubtful	—		—		2,924		—		—		8		—		—		2,932
	Loss	—		—		963		—		404		984		—		—		2,351
Total owner occupied term, net		$	338,425	$	523,541	$	1,061,372	$	973,057	$	448,395	$	1,786,776	$	78,867	$	52	$	5,210,485
Current YTD period:
	Gross charge-offs	$	—	$	—	$	569	$	—	$	—	$	91	$	—	$	—	$	660
Multifamily, net
Credit quality indicator:
	Pass/Watch	$	129,031	$	254,472	$	1,944,096	$	1,671,126	$	408,718	$	1,261,111	$	91,735	$	12	$	5,760,301
	Special mention	—		—		4,556		4,120		929		4,179		—		—		13,784
	Substandard	—		—		—		1,619		—		4,033		—		—		5,652


Total multifamily, net		$	129,031	$	254,472	$	1,948,652	$	1,676,865	$	409,647	$	1,269,323	$	91,735	$	12	$	5,779,737
Current YTD period:
	Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Construction & development, net
Credit quality indicator:
	Pass/Watch	$	316,050	$	440,950	$	841,805	$	237,802	$	105,119	$	19,111	$	11,392	$	—	$	1,972,229
	Special mention	1,985		—		—		14,709		—		—		—		—		16,694



Total construction & development, net		$	318,035	$	440,950	$	841,805	$	252,511	$	105,119	$	19,111	$	11,392	$	—	$	1,988,923
Current YTD period:
	Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


(in thousands)		Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Revolving to Non-Revolving Loans Amortized Cost
	September 30, 2024	2024		2023		2022		2021		2020		Prior						Total
Residential development, net
Credit quality indicator:
	Pass/Watch	$	52,468	$	19,661	$	6,762	$	493	$	466	$	785	$	154,113	$	9,831	$	244,579




Total residential development, net		$	52,468	$	19,661	$	6,762	$	493	$	466	$	785	$	154,113	$	9,831	$	244,579
Current YTD period:
	Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Total commercial real estate		$	1,093,629	$	1,844,034	$	5,142,304	$	4,044,390	$	1,541,531	$	5,554,219	$	372,868	$	22,555	$	19,615,530

Commercial:
Term, net
Credit quality indicator:
	Pass/Watch	$	538,326	$	690,664	$	1,118,398	$	811,447	$	320,002	$	666,260	$	1,090,113	$	16,685	$	5,251,895
	Special mention	1,477		53,457		12,122		9,720		501		19,031		—		—		96,308
	Substandard	20,651		5,851		8,207		10,433		1,390		10,645		—		3,897		61,074
	Doubtful	—		3,070		5,381		3,725		683		2,033		—		—		14,892
	Loss	—		—		—		1,537		1,531		1,972		—		—		5,040
Total term, net		$	560,454	$	753,042	$	1,144,108	$	836,862	$	324,107	$	699,941	$	1,090,113	$	20,582	$	5,429,209
Current YTD period:
	Gross charge-offs	$	649	$	1,076	$	1,542	$	980	$	1,309	$	680	$	4,171	$	—	$	10,407
Lines of credit & other, net
Credit quality indicator:
	Pass/Watch	$	77,329	$	66,308	$	67,671	$	19,207	$	9,808	$	16,978	$	2,245,350	$	19,017	$	2,521,668
	Special mention	585		2,164		—		323		20		152		34,404		2,613		40,261
	Substandard	33,609		3,351		1,223		—		—		101		33,612		6,250		78,146
	Doubtful	—		—		—		—		—		—		—		250		250
	Loss	—		—		191		—		—		—		—		153		344
Total lines of credit & other, net		$	111,523	$	71,823	$	69,085	$	19,530	$	9,828	$	17,231	$	2,313,366	$	28,283	$	2,640,669
Current YTD period:
	Gross charge-offs	$	—	$	758	$	309	$	241	$	49	$	562	$	19,804	$	2,958	$	24,681
Leases & equipment finance, net
Credit quality indicator:
	Pass/Watch	$	469,852	$	506,502	$	348,955	$	122,245	$	44,849	$	52,720	$	—	$	—	$	1,545,123
	Special mention	1,424		41,883		10,746		3,412		665		655		—		—		58,785
	Substandard	3,835		7,926		9,669		3,547		1,189		1,481		—		—		27,647
	Doubtful	2,158		11,996		14,427		6,080		1,229		685		—		—		36,575
	Loss	146		810		821		330		84		106		—		—		2,297
Total leases & equipment finance, net		$	477,415	$	569,117	$	384,618	$	135,614	$	48,016	$	55,647	$	—	$	—	$	1,670,427
Current YTD period:
	Gross charge-offs	$	—	$	15,256	$	41,015	$	15,008	$	4,350	$	2,721	$	—	$	—	$	78,350

Total commercial		$	1,149,392	$	1,393,982	$	1,597,811	$	992,006	$	381,951	$	772,819	$	3,403,479	$	48,865	$	9,740,305


(in thousands)		Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Revolving to Non-Revolving Loans Amortized Cost
	September 30, 2024	2024		2023		2022		2021		2020		Prior						Total
Residential:
Mortgage, net
Credit quality indicator:
	Pass/Watch	$	140,488	$	244,135	$	1,799,124	$	2,135,113	$	486,093	$	1,069,465	$	—	$	—	$	5,874,418
	Special mention	1,542		2,697		2,496		3,045		673		4,239		—		—		14,692
	Substandard	3,143		6,353		6,538		7,061		2,579		19,377		—		—		45,051

	Loss	1,034		848		3,246		2,980		950		1,515		—		—		10,573
Total mortgage, net		$	146,207	$	254,033	$	1,811,404	$	2,148,199	$	490,295	$	1,094,596	$	—	$	—	$	5,944,734
Current YTD period:
	Gross charge-offs	$	—	$	—	$	491	$	292	$	314	$	368	$	—	$	—	$	1,465
Home equity loans & lines, net
Credit quality indicator:
	Pass/Watch	$	396	$	840	$	2,532	$	1,378	$	580	$	40,850	$	1,931,777	$	24,303	$	2,002,656
	Special mention	—		28		215		—		8		1,245		6,538		2,309		10,343
	Substandard	—		—		—		175		—		123		1,628		219		2,145

	Loss	—		—		—		44		101		553		1,015		479		2,192
Total home equity loans & lines, net		$	396	$	868	$	2,747	$	1,597	$	689	$	42,771	$	1,940,958	$	27,310	$	2,017,336
Current YTD period:
	Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	240	$	225	$	—	$	465

Total residential		$	146,603	$	254,901	$	1,814,151	$	2,149,796	$	490,984	$	1,137,367	$	1,940,958	$	27,310	$	7,962,070

Consumer & other, net:
Credit quality indicator:
	Pass/Watch	$	21,317	$	18,615	$	11,170	$	5,076	$	3,356	$	5,839	$	116,018	$	2,186	$	183,577
	Special mention	40		40		33		32		6		75		658		319		1,203
	Substandard	—		8		—		—		—		—		170		138		316

	Loss	—		—		—		—		—		1		—		—		1
Total consumer & other, net		$	21,357	$	18,663	$	11,203	$	5,108	$	3,362	$	5,915	$	116,846	$	2,643	$	185,097
Current YTD period:
	Gross charge-offs	$	55	$	2,301	$	95	$	25	$	—	$	281	$	1,529	$	530	$	4,816

Grand total		$	2,410,981	$	3,511,580	$	8,565,469	$	7,191,300	$	2,417,828	$	7,470,320	$	5,834,151	$	101,373	$	37,503,002


(in thousands)		Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Revolving to Non-Revolving Loans Amortized Cost
	December 31, 2023	2023		2022		2021		2020		2019		Prior						Total
Commercial real estate:
Non-owner occupied term, net
Credit quality indicator:
	Pass/Watch	$	582,178	$	1,307,143	$	1,182,485	$	615,021	$	764,821	$	1,832,231	$	41,194	$	—	$	6,325,073
	Special mention	—		317		3,478		1,337		2,480		16,352		—		—		23,964
	Substandard	32,461		749		—		1,090		35,214		64,304		—		—		133,818

	Loss	—		—		—		—		—		85		—		—		85
Total non-owner occupied term, net		$	614,639	$	1,308,209	$	1,185,963	$	617,448	$	802,515	$	1,912,972	$	41,194	$	—	$	6,482,940
Prior Year End period:
	Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Owner occupied term, net
Credit quality indicator:
	Pass/Watch	$	532,482	$	1,067,388	$	972,130	$	448,569	$	581,616	$	1,351,172	$	67,063	$	—	$	5,020,420
	Special mention	1,575		5,950		6,175		4,945		14,610		15,513		1,932		—		50,700
	Substandard	4,034		7,707		48,281		17,275		10,513		35,216		—		—		123,026
	Doubtful	—		—		—		—		—		90		—		—		90
	Loss	—		963		—		404		—		2		—		—		1,369
Total owner occupied term, net		$	538,091	$	1,082,008	$	1,026,586	$	471,193	$	606,739	$	1,401,993	$	68,995	$	—	$	5,195,605
Prior Year End period:
	Gross charge-offs	$	—	$	16	$	—	$	—	$	—	$	787	$	—	$	—	$	803
Multifamily, net
Credit quality indicator:
	Pass/Watch	$	272,084	$	1,982,075	$	1,660,492	$	400,280	$	590,379	$	745,705	$	51,480	$	—	$	5,702,495
	Special mention	—		—		1,278		—		961		—		—		—		2,239



Total multifamily, net		$	272,084	$	1,982,075	$	1,661,770	$	400,280	$	591,340	$	745,705	$	51,480	$	—	$	5,704,734
Prior Year End period:
	Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Construction & development, net
Credit quality indicator:
	Pass/Watch	$	248,623	$	716,207	$	530,305	$	186,680	$	21,990	$	10,738	$	31,289	$	—	$	1,745,832
	Special mention	—		1,470		—		—		—		—		—		—		1,470



Total construction & development, net		$	248,623	$	717,677	$	530,305	$	186,680	$	21,990	$	10,738	$	31,289	$	—	$	1,747,302
Prior Year End period:
	Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential development, net
Credit quality indicator:
	Pass/Watch	$	90,241	$	86,078	$	22,271	$	—	$	—	$	1,329	$	116,490	$	6,149	$	322,558
	Special mention	—		—		—		—		—		—		1,341		—		1,341



Total residential development, net		$	90,241	$	86,078	$	22,271	$	—	$	—	$	1,329	$	117,831	$	6,149	$	323,899
Prior Year End period:
	Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Total commercial real estate		$	1,763,678	$	5,176,047	$	4,426,895	$	1,675,601	$	2,022,584	$	4,072,737	$	310,789	$	6,149	$	19,454,480


(in thousands)		Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Revolving to Non-Revolving Loans Amortized Cost
	December 31, 2023	2023		2022		2021		2020		2019		Prior						Total
Commercial:
Term, net
Credit quality indicator:
	Pass/Watch	$	835,662	$	1,215,539	$	933,970	$	391,735	$	271,974	$	560,595	$	1,097,630	$	50,874	$	5,357,979
	Special mention	23,250		14,875		29,128		109		3,340		16,476		—		—		87,178
	Substandard	2,911		13,862		13,981		3,068		7,385		7,859		31,399		4,139		84,604
	Doubtful	—		1,329		335		796		197		699		—		—		3,356
	Loss	—		415		—		648		51		2,534		—		—		3,648
Total term, net		$	861,823	$	1,246,020	$	977,414	$	396,356	$	282,947	$	588,163	$	1,129,029	$	55,013	$	5,536,765
Prior Year End period:
	Gross charge-offs	$	3,000	$	1,418	$	—	$	415	$	389	$	886	$	44	$	808	$	6,960
Lines of credit & other, net
Credit quality indicator:
	Pass/Watch	$	105,360	$	105,791	$	58,441	$	12,266	$	10,927	$	16,108	$	1,922,115	$	5,676	$	2,236,684
	Special mention	476		635		394		—		—		80		61,927		403		63,915
	Substandard	7,807		4,161		—		—		—		593		83,304		32,509		128,374
	Doubtful	—		—		—		—		—		—		48		211		259
	Loss	—		693		200		—		1		1		—		—		895
Total lines of credit & other, net		$	113,643	$	111,280	$	59,035	$	12,266	$	10,928	$	16,782	$	2,067,394	$	38,799	$	2,430,127
Prior Year End period:
	Gross charge-offs	$	30	$	168	$	—	$	47	$	144	$	45	$	1,058	$	1,809	$	3,301
Leases & equipment finance, net
Credit quality indicator:
	Pass/Watch	$	682,866	$	501,867	$	200,499	$	92,402	$	61,065	$	33,908	$	—	$	—	$	1,572,607
	Special mention	46,806		15,962		6,182		1,688		7,224		77		—		—		77,939
	Substandard	7,094		15,274		6,704		2,163		1,246		1,161		—		—		33,642
	Doubtful	5,833		22,566		9,036		3,161		1,700		208		—		—		42,504
	Loss	395		1,485		581		292		58		9		—		—		2,820
Total leases & equipment finance, net		$	742,994	$	557,154	$	223,002	$	99,706	$	71,293	$	35,363	$	—	$	—	$	1,729,512
Prior Year End period:
	Gross charge-offs	$	2,324	$	47,116	$	31,569	$	9,111	$	6,394	$	3,087	$	—	$	—	$	99,601

Total commercial		$	1,718,460	$	1,914,454	$	1,259,451	$	508,328	$	365,168	$	640,308	$	3,196,423	$	93,812	$	9,696,404

Residential:
Mortgage, net
Credit quality indicator:
	Pass/Watch	$	221,207	$	1,845,395	$	2,355,420	$	521,177	$	443,152	$	735,801	$	—	$	—	$	6,122,152
	Special mention	1,125		916		1,737		651		1,156		4,109		—		—		9,694
	Substandard	1,851		2,617		2,826		787		1,759		8,746		—		—		18,586

	Loss	159		2,724		970		851		220		1,810		—		—		6,734
Total mortgage, net		$	224,342	$	1,851,652	$	2,360,953	$	523,466	$	446,287	$	750,466	$	—	$	—	$	6,157,166
Prior Year End period:
	Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	6	$	—	$	—	$	6


(in thousands)		Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Revolving to Non-Revolving Loans Amortized Cost
	December 31, 2023	2023		2022		2021		2020		2019		Prior						Total
Home equity loans & lines, net
Credit quality indicator:
	Pass/Watch	$	562	$	1,242	$	1,056	$	100	$	896	$	35,677	$	1,870,270	$	17,807	$	1,927,610
	Special mention	—		—		—		—		114		378		5,052		1,230		6,774
	Substandard	—		—		—		—		137		190		1,278		174		1,779

	Loss	14		—		—		—		—		85		1,286		618		2,003
Total home equity loans & lines, net		$	576	$	1,242	$	1,056	$	100	$	1,147	$	36,330	$	1,877,886	$	19,829	$	1,938,166
Prior Year End period:
	Gross charge-offs	$	—	$	—	$	12	$	29	$	—	$	52	$	448	$	—	$	541

Total residential		$	224,918	$	1,852,894	$	2,362,009	$	523,566	$	447,434	$	786,796	$	1,877,886	$	19,829	$	8,095,332

Consumer & other, net:
Credit quality indicator:
	Pass/Watch	$	39,977	$	14,919	$	7,132	$	4,953	$	3,441	$	5,022	$	118,125	$	543	$	194,112
	Special mention	138		52		5		13		52		122		779		135		1,296
	Substandard	—		—		—		—		3		1		251		63		318

	Loss	—		—		—		—		—		7		2		—		9
Total consumer & other, net		$	40,115	$	14,971	$	7,137	$	4,966	$	3,496	$	5,152	$	119,157	$	741	$	195,735
Prior Year End period:
	Gross charge-offs	$	3,313	$	132	$	23	$	20	$	29	$	288	$	1,485	$	472	$	5,762

Grand total		$	3,747,171	$	8,958,366	$	8,055,492	$	2,712,461	$	2,838,682	$	5,504,993	$	5,504,255	$	120,531	$	37,441,951