XML 33 R14.htm IDEA: XBRL DOCUMENT
v3.25.0.1

LOANS AND ALLOWANCE FOR CREDIT LOSSES | 12 Months Ended
--- | ---
Dec. 31, 2024
Receivables [Abstract] |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | LOANS AND ALLOWANCE FOR CREDIT LOSSES The Corporation’s primary lending focus is small business and middle market commercial, commercial real estate, public finance and residential real estate, which results in portfolio diversification. The following tables show the composition of the loan portfolio and credit quality characteristics by collateral classification, excluding loans held for sale. Loans held for sale at December 31, 2024 and December 31, 2023, were $18.7 million and $18.9 million, respectively. The following table illustrates the composition of the Corporation’s loan portfolio by loan class as of the dates indicated:
| December 31, 2024 |  | December 31, 2023
Commercial and industrial loans | $ | 4,114,292 |  |  | $ | 3,670,948 |
Agricultural land, production and other loans to farmers | 256,312 |  |  | 263,414 |
Real estate loans: |  |  |
Construction | 792,144 |  |  | 957,545 |
Commercial real estate, non-owner occupied | 2,274,016 |  |  | 2,400,839 |
Commercial real estate, owner occupied | 1,157,944 |  |  | 1,162,083 |
Residential | 2,374,729 |  |  | 2,288,921 |
Home equity | 659,811 |  |  | 617,571 |
Individuals' loans for household and other personal expenditures | 166,028 |  |  | 168,388 |
Public finance and other commercial loans | 1,059,083 |  |  | 956,318 |
Loans | $ | 12,854,359 |  |  | $ | 12,486,027 |
Credit Quality As part of the ongoing monitoring of the credit quality of the Corporation’s loan portfolio, management tracks certain credit quality indicators including trends related to: (i) the level of criticized commercial loans, (ii) net charge-offs, (iii) nonperforming loans, (iv) covenant failures and (v) the general national and local economic conditions. The Corporation utilizes a risk grading of pass, special mention, substandard, doubtful and loss to assess the overall credit quality of large commercial loans. All large commercial credit grades are reviewed at a minimum of once a year for pass grade loans. Loans with grades below pass are reviewed more frequently depending on the grade. A description of the general characteristics of these grades is as follows: •Pass - Loans that are considered to be of acceptable credit quality. •Special Mention - Loans which possess some credit deficiency or potential weakness, which deserves close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Corporation’s credit position at some future date. Special mention assets are not adversely classified and do not expose the Corporation to sufficient risk to warrant adverse classification. •Substandard - Loans that are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified have a well-defined weakness that jeopardizes the liquidation of the debt. They are characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected. •Doubtful - Loans that have all of the weaknesses of those classified as Substandard. However, based on currently existing facts, conditions and values, these weaknesses make full collection of principal highly questionable and improbable. •Loss – Loans that are considered uncollectible and of such little value that continuing to carry them as an asset is not warranted. Loans will be classified as Loss when it is neither practical or desirable to defer writing off or reserving all or a portion of a basically worthless asset, even though partial recovery may be possible at some time in the future. The following tables summarize the risk grading of the Corporation’s loan portfolio by loan class and gross charge-offs by year of origination for the years indicated. Consumer loans are not risk graded. For the purposes of this disclosure, the consumer loans are classified in the following manner: loans that are less than 30 days past due are Pass, loans 30-89 days past due are Special Mention and loans greater than 89 days past due are Substandard. The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified due date.
December 31, 2024
| Term Loans (amortized cost basis by origination year) |  |  |  |  |  |
| 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior |  | Revolving loans amortized cost basis |  | Revolving loans converted to term |  | Total
Commercial and industrial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 1,314,174 |  |  | $ | 493,138 |  |  | $ | 196,877 |  |  | $ | 158,215 |  |  | $ | 55,639 |  |  | $ | 49,554 |  |  | $ | 1,576,409 |  |  | $ | 130 |  |  | $ | 3,844,136 |
Special Mention | 14,982 |  |  | 13,282 |  |  | 20,837 |  |  | 1,097 |  |  | 2,222 |  |  | 348 |  |  | 41,187 |  |  | — |  |  | 93,955 |
Substandard | 29,238 |  |  | 32,285 |  |  | 26,973 |  |  | 7,249 |  |  | 1,081 |  |  | 1,134 |  |  | 75,649 |  |  | 513 |  |  | 174,122 |
Doubtful | 1,473 |  |  | 606 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2,079 |
Total Commercial and industrial loans | 1,359,867 |  |  | 539,311 |  |  | 244,687 |  |  | 166,561 |  |  | 58,942 |  |  | 51,036 |  |  | 1,693,245 |  |  | 643 |  |  | 4,114,292 |
Current period gross write-offs | 1,242 |  |  | 39,087 |  |  | 341 |  |  | 8,605 |  |  | 500 |  |  | 424 |  |  | — |  |  | — |  |  | 50,199 |
Agricultural land, production and other loans to farmers |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 28,600 |  |  | 23,070 |  |  | 30,518 |  |  | 26,442 |  |  | 27,105 |  |  | 29,930 |  |  | 84,502 |  |  | — |  |  | 250,167 |
Special Mention | 169 |  |  | — |  |  | 245 |  |  | — |  |  | 446 |  |  | 422 |  |  | 528 |  |  | — |  |  | 1,810 |
Substandard | 2,554 |  |  | 48 |  |  | 800 |  |  | 682 |  |  | 34 |  |  | 81 |  |  | 136 |  |  | — |  |  | 4,335 |
Total Agricultural land, production and other loans to farmers | 31,323 |  |  | 23,118 |  |  | 31,563 |  |  | 27,124 |  |  | 27,585 |  |  | 30,433 |  |  | 85,166 |  |  | — |  |  | 256,312 |
Current period gross write-offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Real estate loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 241,622 |  |  | 203,829 |  |  | 114,794 |  |  | 31,864 |  |  | 6,398 |  |  | 8,549 |  |  | 12,836 |  |  | — |  |  | 619,892 |
Special Mention | 74,879 |  |  | 21,853 |  |  | 19,019 |  |  | 15,214 |  |  | — |  |  | 40 |  |  | — |  |  | — |  |  | 131,005 |
Substandard | 22,305 |  |  | — |  |  | 18,292 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 40,597 |
Doubtful | — |  |  | — |  |  | — |  |  | 650 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 650 |
Total Construction | 338,806 |  |  | 225,682 |  |  | 152,105 |  |  | 47,728 |  |  | 6,398 |  |  | 8,589 |  |  | 12,836 |  |  | — |  |  | 792,144 |
Current period gross write-offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Commercial real estate, non-owner occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 383,279 |  |  | 275,907 |  |  | 342,442 |  |  | 406,289 |  |  | 327,372 |  |  | 278,362 |  |  | 19,863 |  |  | — |  |  | 2,033,514 |
Special Mention | 79,440 |  |  | 9,051 |  |  | 35,230 |  |  | 12,975 |  |  | 5,287 |  |  | 28,200 |  |  | — |  |  | — |  |  | 170,183 |
Substandard | 34,215 |  |  | 2,506 |  |  | 6,737 |  |  | 6,656 |  |  | 18,607 |  |  | 1,598 |  |  | — |  |  | — |  |  | 70,319 |
Total Commercial real estate, non-owner occupied | 496,934 |  |  | 287,464 |  |  | 384,409 |  |  | 425,920 |  |  | 351,266 |  |  | 308,160 |  |  | 19,863 |  |  | — |  |  | 2,274,016 |
Current period gross write-offs | — |  |  | 339 |  |  | 3 |  |  | — |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | 343 |
Commercial real estate, owner occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 194,703 |  |  | 141,964 |  |  | 164,725 |  |  | 217,319 |  |  | 198,314 |  |  | 127,431 |  |  | 31,573 |  |  | — |  |  | 1,076,029 |
Special Mention | 1,887 |  |  | 11,013 |  |  | 7,555 |  |  | 9,910 |  |  | 8,603 |  |  | 1,951 |  |  | 460 |  |  | — |  |  | 41,379 |
Substandard | 13,310 |  |  | 7,669 |  |  | 3,189 |  |  | 11,294 |  |  | 1,522 |  |  | 3,552 |  |  | — |  |  | — |  |  | 40,536 |
Total Commercial real estate, owner occupied | 209,900 |  |  | 160,646 |  |  | 175,469 |  |  | 238,523 |  |  | 208,439 |  |  | 132,934 |  |  | 32,033 |  |  | — |  |  | 1,157,944 |
Current period gross write-offs | — |  |  | — |  |  | — |  |  | — |  |  | 9 |  |  | — |  |  | — |  |  | — |  |  | 9 |
Residential |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 221,016 |  |  | 413,552 |  |  | 672,713 |  |  | 397,192 |  |  | 326,154 |  |  | 293,785 |  |  | 8,887 |  |  | 13 |  |  | 2,333,312 |
Special Mention | 1,528 |  |  | 1,953 |  |  | 6,228 |  |  | 4,102 |  |  | 2,891 |  |  | 3,152 |  |  | 150 |  |  | — |  |  | 20,004 |
Substandard | 1,306 |  |  | 1,912 |  |  | 8,849 |  |  | 3,989 |  |  | 1,216 |  |  | 3,794 |  |  | 347 |  |  | — |  |  | 21,413 |
Total Residential | 223,850 |  |  | 417,417 |  |  | 687,790 |  |  | 405,283 |  |  | 330,261 |  |  | 300,731 |  |  | 9,384 |  |  | 13 |  |  | 2,374,729 |
Current period gross write-offs | — |  |  | 173 |  |  | 779 |  |  | 136 |  |  | 20 |  |  | 288 |  |  | — |  |  | — |  |  | 1,396 |
Home equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 6,788 |  |  | 4,354 |  |  | 24,810 |  |  | 51,313 |  |  | 10,486 |  |  | 3,976 |  |  | 535,132 |  |  | 12,124 |  |  | 648,983 |
Special Mention | 38 |  |  | — |  |  | 375 |  |  | 285 |  |  | 297 |  |  | 69 |  |  | 4,568 |  |  | 442 |  |  | 6,074 |
Substandard | 61 |  |  | — |  |  | 572 |  |  | 815 |  |  | — |  |  | 96 |  |  | 2,244 |  |  | 966 |  |  | 4,754 |
Total Home Equity | 6,887 |  |  | 4,354 |  |  | 25,757 |  |  | 52,413 |  |  | 10,783 |  |  | 4,141 |  |  | 541,944 |  |  | 13,532 |  |  | 659,811 |
Current period gross write-offs | — |  |  | 10 |  |  | 35 |  |  | 22 |  |  | — |  |  | 267 |  |  | — |  |  | — |  |  | 334 |
Individuals' loans for household and other personal expenditures |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 40,819 |  |  | 21,867 |  |  | 31,356 |  |  | 10,520 |  |  | 2,276 |  |  | 4,693 |  |  | 53,180 |  |  | 180 |  |  | 164,891 |
Special Mention | 153 |  |  | 234 |  |  | 347 |  |  | 175 |  |  | 59 |  |  | 40 |  |  | 128 |  |  | — |  |  | 1,136 |
Substandard | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | 1 |
Total Individuals' loans for household and other personal expenditures | 40,972 |  |  | 22,101 |  |  | 31,703 |  |  | 10,695 |  |  | 2,335 |  |  | 4,733 |  |  | 53,308 |  |  | 181 |  |  | 166,028 |
Current period gross write-offs | 208 |  |  | 920 |  |  | 523 |  |  | 184 |  |  | 47 |  |  | 80 |  |  | — |  |  | — |  |  | 1,962 |
Public finance and other commercial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 161,072 |  |  | 53,750 |  |  | 203,884 |  |  | 195,066 |  |  | 146,377 |  |  | 298,802 |  |  | 132 |  |  | — |  |  | 1,059,083 |
Total Public finance and other commercial loans | 161,072 |  |  | 53,750 |  |  | 203,884 |  |  | 195,066 |  |  | 146,377 |  |  | 298,802 |  |  | 132 |  |  | — |  |  | 1,059,083 |
Loans | $ | 2,869,611 |  |  | $ | 1,733,843 |  |  | $ | 1,937,367 |  |  | $ | 1,569,313 |  |  | $ | 1,142,386 |  |  | $ | 1,139,559 |  |  | $ | 2,447,911 |  |  | $ | 14,369 |  |  | $ | 12,854,359 |
Total current period gross charge-offs | $ | 1,450 |  |  | $ | 40,529 |  |  | $ | 1,681 |  |  | $ | 8,947 |  |  | $ | 576 |  |  | $ | 1,060 |  |  | $ | — |  |  | $ | — |  |  | $ | 54,243 |
December 31, 2023
| Term Loans (amortized cost basis by origination year) |  |  |  |  |  |
| 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | Prior |  | Revolving loans amortized cost basis |  | Revolving loans converted to term |  | Total
Commercial and industrial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 1,175,967 |  |  | $ | 474,601 |  |  | $ | 253,148 |  |  | $ | 86,226 |  |  | $ | 47,910 |  |  | $ | 45,020 |  |  | $ | 1,393,756 |  |  | $ | 60 |  |  | $ | 3,476,688 |
Special Mention | 34,356 |  |  | 3,911 |  |  | 1,546 |  |  | 5,149 |  |  | 2,986 |  |  | 241 |  |  | 45,994 |  |  | — |  |  | 94,183 |
Substandard | 12,311 |  |  | 20,245 |  |  | 17,733 |  |  | 2,479 |  |  | 1,507 |  |  | 1,512 |  |  | 40,449 |  |  | 144 |  |  | 96,380 |
Doubtful | 857 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2,840 |  |  | — |  |  | 3,697 |
Total Commercial and industrial loans | 1,223,491 |  |  | 498,757 |  |  | 272,427 |  |  | 93,854 |  |  | 52,403 |  |  | 46,773 |  |  | 1,483,039 |  |  | 204 |  |  | 3,670,948 |
Current period gross write-offs | 13,973 |  |  | 2,711 |  |  | 576 |  |  | 5,665 |  |  | 78 |  |  | 261 |  |  | — |  |  | — |  |  | 23,264 |
Agricultural land, production and other loans to farmers |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 35,633 |  |  | 38,145 |  |  | 31,511 |  |  | 31,048 |  |  | 12,995 |  |  | 25,462 |  |  | 87,534 |  |  | — |  |  | 262,328 |
Special Mention | — |  |  | 266 |  |  | — |  |  | — |  |  | — |  |  | 122 |  |  | — |  |  | — |  |  | 388 |
Substandard | 58 |  |  | 150 |  |  | — |  |  | 454 |  |  | — |  |  | 36 |  |  | — |  |  | — |  |  | 698 |
Total Agricultural land, production and other loans to farmers | 35,691 |  |  | 38,561 |  |  | 31,511 |  |  | 31,502 |  |  | 12,995 |  |  | 25,620 |  |  | 87,534 |  |  | — |  |  | 263,414 |
Current period gross write-offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Real estate loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 403,578 |  |  | 267,587 |  |  | 198,350 |  |  | 8,372 |  |  | 7,723 |  |  | 2,357 |  |  | 11,735 |  |  | — |  |  | 899,702 |
Special Mention | 25,894 |  |  | — |  |  | — |  |  | 20,846 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 46,740 |
Substandard | 1,451 |  |  | 4,330 |  |  | 5,322 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 11,103 |
Total Construction | 430,923 |  |  | 271,917 |  |  | 203,672 |  |  | 29,218 |  |  | 7,723 |  |  | 2,357 |  |  | 11,735 |  |  | — |  |  | 957,545 |
Current period gross write-offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Commercial real estate, non-owner occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 373,378 |  |  | 504,280 |  |  | 535,327 |  |  | 418,553 |  |  | 141,320 |  |  | 200,821 |  |  | 16,744 |  |  | — |  |  | 2,190,423 |
Special Mention | 76,382 |  |  | 21,145 |  |  | 7,005 |  |  | 4,531 |  |  | 19,479 |  |  | 27,941 |  |  | 37 |  |  | — |  |  | 156,520 |
Substandard | 20,358 |  |  | 10,537 |  |  | 219 |  |  | 20,236 |  |  | — |  |  | 2,299 |  |  | 247 |  |  | — |  |  | 53,896 |
Total Commercial real estate, non-owner occupied | 470,118 |  |  | 535,962 |  |  | 542,551 |  |  | 443,320 |  |  | 160,799 |  |  | 231,061 |  |  | 17,028 |  |  | — |  |  | 2,400,839 |
Current period gross write-offs | — |  |  | 66 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 66 |
Commercial real estate, owner occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 176,750 |  |  | 199,821 |  |  | 256,346 |  |  | 263,522 |  |  | 99,180 |  |  | 77,485 |  |  | 27,369 |  |  | — |  |  | 1,100,473 |
Special Mention | 6,712 |  |  | 5,034 |  |  | 9,319 |  |  | 2,460 |  |  | 919 |  |  | 2,902 |  |  | 514 |  |  | — |  |  | 27,860 |
Substandard | 18,092 |  |  | 3,712 |  |  | 4,183 |  |  | 4,545 |  |  | 289 |  |  | 2,929 |  |  | — |  |  | — |  |  | 33,750 |
Total Commercial real estate, owner occupied | 201,554 |  |  | 208,567 |  |  | 269,848 |  |  | 270,527 |  |  | 100,388 |  |  | 83,316 |  |  | 27,883 |  |  | — |  |  | 1,162,083 |
Current period gross write-offs | 48 |  |  | — |  |  | — |  |  | — |  |  | 2 |  |  | — |  |  | — |  |  | — |  |  | 50 |
Residential |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 395,363 |  |  | 695,056 |  |  | 442,495 |  |  | 365,297 |  |  | 98,654 |  |  | 254,718 |  |  | 4,988 |  |  | 83 |  |  | 2,256,654 |
Special Mention | 2,167 |  |  | 5,591 |  |  | 3,202 |  |  | 1,924 |  |  | 1,065 |  |  | 4,837 |  |  | 200 |  |  | 81 |  |  | 19,067 |
Substandard | 804 |  |  | 3,708 |  |  | 2,529 |  |  | 1,199 |  |  | 866 |  |  | 4,063 |  |  | 31 |  |  | — |  |  | 13,200 |
Total Residential | 398,334 |  |  | 704,355 |  |  | 448,226 |  |  | 368,420 |  |  | 100,585 |  |  | 263,618 |  |  | 5,219 |  |  | 164 |  |  | 2,288,921 |
Current period gross write-offs | 101 |  |  | 252 |  |  | 208 |  |  | 3 |  |  | 3 |  |  | 94 |  |  | — |  |  | — |  |  | 661 |
Home equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 9,375 |  |  | 29,784 |  |  | 61,591 |  |  | 11,084 |  |  | 1,092 |  |  | 3,875 |  |  | 484,330 |  |  | 5,837 |  |  | 606,968 |
Special Mention | — |  |  | 715 |  |  | — |  |  | 1,092 |  |  | 15 |  |  | 2 |  |  | 5,031 |  |  | 149 |  |  | 7,004 |
Substandard | 63 |  |  | — |  |  | 727 |  |  | — |  |  | — |  |  | 123 |  |  | 2,589 |  |  | 97 |  |  | 3,599 |
Total Home Equity | 9,438 |  |  | 30,499 |  |  | 62,318 |  |  | 12,176 |  |  | 1,107 |  |  | 4,000 |  |  | 491,950 |  |  | 6,083 |  |  | 617,571 |
Current period gross write-offs | 69 |  |  | 213 |  |  | 224 |  |  | 149 |  |  | 193 |  |  | 1,596 |  |  | — |  |  | — |  |  | 2,444 |
Individuals' loans for household and other personal expenditures |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 35,781 |  |  | 49,295 |  |  | 28,387 |  |  | 6,726 |  |  | 2,070 |  |  | 5,904 |  |  | 38,619 |  |  | 772 |  |  | 167,554 |
Special Mention | 184 |  |  | 246 |  |  | 138 |  |  | 69 |  |  | — |  |  | 14 |  |  | 176 |  |  | — |  |  | 827 |
Substandard | — |  |  | 6 |  |  | — |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | 7 |
Total Individuals' loans for household and other personal expenditures | 35,965 |  |  | 49,547 |  |  | 28,525 |  |  | 6,795 |  |  | 2,071 |  |  | 5,918 |  |  | 38,795 |  |  | 772 |  |  | 168,388 |
Current period gross write-offs | 147 |  |  | 770 |  |  | 342 |  |  | 77 |  |  | 62 |  |  | 156 |  |  | — |  |  | — |  |  | 1,554 |
Public finance and other commercial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 65,357 |  |  | 208,347 |  |  | 204,863 |  |  | 155,132 |  |  | 91,619 |  |  | 229,355 |  |  | 1,645 |  |  | — |  |  | 956,318 |
Total Public finance and other commercial loans | 65,357 |  |  | 208,347 |  |  | 204,863 |  |  | 155,132 |  |  | 91,619 |  |  | 229,355 |  |  | 1,645 |  |  | — |  |  | 956,318 |
Loans | $ | 2,870,871 |  |  | $ | 2,546,512 |  |  | $ | 2,063,941 |  |  | $ | 1,410,944 |  |  | $ | 529,690 |  |  | $ | 892,018 |  |  | $ | 2,164,828 |  |  | $ | 7,223 |  |  | $ | 12,486,027 |
Total current period gross charge-offs | $ | 14,338 |  |  | $ | 4,012 |  |  | $ | 1,350 |  |  | $ | 5,894 |  |  | $ | 338 |  |  | $ | 2,107 |  |  | $ | — |  |  | $ | — |  |  | $ | 28,039 |
Total past due loans equaled $116.2 million as of December 31, 2024, a $37.0 million increase from the total of $79.2 million for December 31, 2023. At December 31, 2024, 30-59 Days Past Due loans totaled $35.8 million, an increase of $1.7 million from December 31, 2023. At December 31, 2024, 60-89 Days Past Due loans totaled $32.6 million, an increase of $21.4 million from December 31, 2023. Of the $21.4 million increase, $20.0 million was in the construction loan class. At December 31, 2024, 90 Days or More Past Due loans totaled $47.8 million, an increase of $13.8 million from December 31, 2023. The primary increases were $2.9 million, $4.0 million, and $6.7 million, in the commercial and industrial, construction and residential loan classes, respectively. The tables below show a past due aging of the Corporation’s loan portfolio, by loan class, as of the dates indicated:
| December 31, 2024
| Current |  | 30-59 Days Past Due |  | 60-89 Days Past Due |  | 90 Days or More Past Due |  | Total |  | Loans > 90 Days or More Past Due And Accruing
Commercial and industrial loans | $ | 4,096,605 |  |  | $ | 7,428 |  |  | $ | 473 |  |  | $ | 9,786 |  |  | $ | 4,114,292 |  |  | $ | 2,010 |
Agricultural land, production and other loans to farmers | 256,148 |  |  | 164 |  |  | — |  |  | — |  |  | 256,312 |  |  | — |
Real estate loans: |  |  |  |  |  |  |  |  |  |  |
Construction | 761,819 |  |  | 4,332 |  |  | 22,005 |  |  | 3,988 |  |  | 792,144 |  |  | 3,683 |
Commercial real estate, non-owner occupied | 2,259,549 |  |  | 2,407 |  |  | 1,718 |  |  | 10,342 |  |  | 2,274,016 |  |  | — |
Commercial real estate, owner occupied | 1,153,861 |  |  | 3,783 |  |  | — |  |  | 300 |  |  | 1,157,944 |  |  | — |
Residential | 2,337,002 |  |  | 12,302 |  |  | 6,606 |  |  | 18,819 |  |  | 2,374,729 |  |  | 208 |
Home equity | 649,238 |  |  | 4,431 |  |  | 1,569 |  |  | 4,573 |  |  | 659,811 |  |  | — |
Individuals' loans for household and other personal expenditures | 164,891 |  |  | 926 |  |  | 210 |  |  | 1 |  |  | 166,028 |  |  | 1 |
Public finance and other commercial loans | 1,059,083 |  |  | — |  |  | — |  |  | — |  |  | 1,059,083 |  |  | — |
Loans | $ | 12,738,196 |  |  | $ | 35,773 |  |  | $ | 32,581 |  |  | $ | 47,809 |  |  | $ | 12,854,359 |  |  | $ | 5,902 |
| December 31, 2023
| Current |  | 30-59 Days Past Due |  | 60-89 Days Past Due |  | 90 Days or More Past Due |  | Total |  | Loans > 90 Days or More Past Due And Accruing
Commercial and industrial loans | $ | 3,657,447 |  |  | $ | 5,021 |  |  | $ | 1,622 |  |  | $ | 6,858 |  |  | $ | 3,670,948 |  |  | $ | 86 |
Agricultural land, production and other loans to farmers | 263,414 |  |  | — |  |  | — |  |  | — |  |  | 263,414 |  |  | — |
Real estate loans: |  |  |  |  |  |  |  |  |  |  |
Construction | 955,588 |  |  | — |  |  | 1,957 |  |  | — |  |  | 957,545 |  |  | — |
Commercial real estate, non-owner occupied | 2,376,184 |  |  | 12,995 |  |  | 195 |  |  | 11,465 |  |  | 2,400,839 |  |  | — |
Commercial real estate, owner occupied | 1,161,869 |  |  | — |  |  | 104 |  |  | 110 |  |  | 1,162,083 |  |  | — |
Residential | 2,259,496 |  |  | 11,810 |  |  | 5,472 |  |  | 12,143 |  |  | 2,288,921 |  |  | — |
Home equity | 608,948 |  |  | 3,614 |  |  | 1,647 |  |  | 3,362 |  |  | 617,571 |  |  | 52 |
Individuals' loans for household and other personal expenditures | 167,553 |  |  | 635 |  |  | 192 |  |  | 8 |  |  | 168,388 |  |  | — |
Public finance and other commercial loans | 956,284 |  |  | — |  |  | — |  |  | 34 |  |  | 956,318 |  |  | 34 |
Loans | $ | 12,406,783 |  |  | $ | 34,075 |  |  | $ | 11,189 |  |  | $ | 33,980 |  |  | $ | 12,486,027 |  |  | $ | 172 |
Loans are reclassified to a non-accruing status when, in management’s judgment, the collateral value and financial condition of the borrower do not justify accruing interest. At the time the accrual is discontinued, all unpaid accrued interest is reversed against earnings. Interest income accrued in the prior year, if any, is charged to the allowance for credit losses. Payments subsequently received on non-accrual loans are applied to principal. A loan is returned to accrual status when principal and interest are no longer past due and collectability is probable, typically after a minimum of six consecutive months of performance. The following table summarizes the Corporation’s non-accrual loans by loan class as of the dates indicated:
| December 31, 2024 |  | December 31, 2023 |
| Nonaccrual Loans |  | Nonaccrual Loans with no Allowance for Credit Losses |  | Nonaccrual Loans |  | Nonaccrual Loans with no Allowance for Credit Losses |  |
Commercial and industrial loans | $ | 8,090 |  |  | $ | 4,937 |  |  | $ | 9,050 |  |  | $ | 1,015 |  |  |
Agricultural land, production and other loans to farmers | 75 |  |  | — |  |  | 58 |  |  | — |  |  |
Real estate loans: |  |  |  |  |  |  |  |  |
Construction | 24,629 |  |  | 22,650 |  |  | 520 |  |  | — |  |  |
Commercial real estate, non-owner occupied | 12,118 |  |  | 10,153 |  |  | 11,932 |  |  | 11,095 |  |  |
Commercial real estate, owner occupied | 2,440 |  |  | 1,904 |  |  | 3,041 |  |  | 2,257 |  |  |
Residential | 21,491 |  |  | — |  |  | 25,140 |  |  | — |  |  |
Home equity | 4,924 |  |  | — |  |  | 3,820 |  |  | — |  |  |
Individuals' loans for household and other personal expenditures | 6 |  |  | — |  |  | 19 |  |  | — |  |  |
Loans | $ | 73,773 |  |  | $ | 39,644 |  |  | $ | 53,580 |  |  | $ | 14,367 |  |  |
Interest income on non-accrual loans is recognized only to the extent that cash payments are received in excess of principal due. There was no interest income recognized on non-accrual loans for the twelve months ended December 31, 2024 and 2023. Determining fair value for collateral dependent loans requires obtaining a current independent appraisal of the collateral and applying a discount factor, which includes selling costs if applicable, to the value. The fair value of real estate is generally based on appraisals by qualified licensed appraisers. The appraisers typically determine the value of the real estate by utilizing an income or market valuation approach. If an appraisal is not available, the fair value may be determined by using a cash flow analysis. Fair value on other collateral such as business assets is typically ascertained by assessing, either singularly or some combination of, asset appraisals, accounts receivable aging reports, inventory listings and or customer financial statements. Both appraised values and values based on borrower’s financial information are discounted as considered appropriate based on age and quality of the information and current market conditions. The following tables present the amortized cost basis of collateral dependent loans by loan class and their respective collateral type, which are individually evaluated to determine expected credit losses, for December 31, 2024 and 2023. The total collateral dependent loans for December 31, 2024 increased $24.1 million from December 31, 2023. The primary changes were related to an increase of $22.6 million and $10.1 million, respectively, in the construction and commercial real estate, non-owner occupied loan classes, which was offset by a decrease of $8.6 million in the commercial and industrial loan class.
| December 31, 2024
| Commercial Real Estate |  | Residential Real Estate |  | Other |  | Total |  | Allowance on Collateral Dependent Loans
Commercial and industrial loans | $ | — |  |  | $ | — |  |  | $ | 23,455 |  |  | $ | 23,455 |  |  | $ | 7,803 |
Real estate loans: |  |  |  |  |  |  |  |  |
Construction | — |  |  | 22,652 |  |  | — |  |  | 22,652 |  |  | — |
Commercial real estate, non-owner occupied | 27,583 |  |  | — |  |  | — |  |  | 27,583 |  |  | 4,295 |
Commercial real estate, owner occupied | 9,748 |  |  | — |  |  | — |  |  | 9,748 |  |  | — |
Residential | — |  |  | 1,174 |  |  | — |  |  | 1,174 |  |  | 189 |
Home equity | — |  |  | 201 |  |  | — |  |  | 201 |  |  | 25 |
Loans | $ | 37,331 |  |  | $ | 24,027 |  |  | $ | 23,455 |  |  | $ | 84,813 |  |  | $ | 12,312 |
| December 31, 2023
| Commercial Real Estate |  | Residential Real Estate |  | Other |  | Total |  | Allowance on Collateral Dependent Loans
Commercial and industrial loans | $ | — |  |  | $ | — |  |  | $ | 32,029 |  |  | $ | 32,029 |  |  | $ | 11,474 |
Real estate loans: |  |  |  |  |  |  |  |  |
Construction | — |  |  | 7 |  |  | — |  |  | 7 |  |  | — |
Commercial real estate, non-owner occupied | 17,516 |  |  | — |  |  | — |  |  | 17,516 |  |  | 35 |
Commercial real estate, owner occupied | 9,452 |  |  | — |  |  | — |  |  | 9,452 |  |  | — |
Residential | — |  |  | 1,439 |  |  | — |  |  | 1,439 |  |  | 230 |
Home equity | — |  |  | 223 |  |  | — |  |  | 223 |  |  | 30 |
Loans | $ | 26,968 |  |  | $ | 1,669 |  |  | $ | 32,029 |  |  | $ | 60,666 |  |  | $ | 11,769 |
In certain situations, the Corporation may modify the terms of a loan to a debtor experiencing financial difficulty. The modifications may include principal forgiveness, interest rate reductions, payment delays, term extensions or combinations of the above. The following table presents the amortized cost basis of loans at December 31, 2024 and 2023 that were both experiencing financial difficulty and modified during the year ended December 31, 2024 and 2023, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below.
| Year Ended December 31, 2024
| Loan Modifications Made to Borrowers Experiencing Financial Difficulty
| Payment Delay |  | Term Extension |  |  |  | Interest Rate Reduction |  | Combination Payment Delay & Term Extension |  | Combination Interest Rate Reduction & Term Extension |  |  |  | Combination Interest Rate Reduction, Term Extension, & Payment Delay |  | % of Total Class of Financing Receivable
Commercial and industrial loans | $ | 11,073 |  |  | $ | 19,152 |  |  |  |  | $ | 246 |  |  | $ | — |  |  | $ | 68 |  |  |  |  | $ | — |  |  | 0.74 | %
Agricultural land, production and other loans to farmers | 2,230 |  |  | — |  |  |  |  | — |  |  | — |  |  | — |  |  |  |  | — |  |  | 0.87 | %
Real estate loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction | — |  |  | 2,393 |  |  |  |  | — |  |  | 22,000 |  |  | — |  |  |  |  | — |  |  | 3.08 | %
Commercial real estate, non-owner occupied | — |  |  | 18,933 |  |  |  |  | — |  |  | — |  |  | — |  |  |  |  | — |  |  | 0.83 | %
Commercial real estate, owner occupied | — |  |  | 6,133 |  |  |  |  | — |  |  | — |  |  | — |  |  |  |  | — |  |  | 0.53 | %
Residential | 2,509 |  |  | 340 |  |  |  |  | — |  |  | 683 |  |  | 43 |  |  |  |  | 532 |  |  | 0.17 | %
Home equity | — |  |  | 61 |  |  |  |  | — |  |  | 161 |  |  | — |  |  |  |  | — |  |  | 0.03 | %
Total | $ | 15,812 |  |  | $ | 47,012 |  |  |  |  | $ | 246 |  |  | $ | 22,844 |  |  | $ | 111 |  |  |  |  | $ | 532 |  |  |
| Year Ended December 31, 2023
| Loan Modifications Made to Borrowers Experiencing Financial Difficulty
| Payment Delay |  | Term Extension |  |  |  |  |  | Combination Payment Delay & Term Extension |  | Combination Interest Rate Reduction & Term Extension |  |  |  |  |  | % of Total Class of Financing Receivable
Commercial and industrial loans | $ | 857 |  |  | $ | 16,572 |  |  |  |  |  |  | $ | — |  |  | $ | 231 |  |  |  |  |  |  | 0.48 | %
Agricultural land, production and other loans to farmers | — |  |  | 58 |  |  |  |  |  |  | — |  |  | — |  |  |  |  |  |  | 0.02 | %
Real estate loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction | — |  |  | 11 |  |  |  |  |  |  | — |  |  | — |  |  |  |  |  |  | — | %
Commercial real estate, non-owner occupied | — |  |  | 11,823 |  |  |  |  |  |  | — |  |  | 7,657 |  |  |  |  |  |  | 0.81 | %
Commercial real estate, owner occupied | 5,540 |  |  | 10,123 |  |  |  |  |  |  | — |  |  | 71 |  |  |  |  |  |  | 1.35 | %
Residential | — |  |  | 129 |  |  |  |  |  |  | 469 |  |  | — |  |  |  |  |  |  | 0.03 | %
Home equity | — |  |  | 63 |  |  |  |  |  |  | — |  |  | 29 |  |  |  |  |  |  | 0.01 | %
Total | $ | 6,397 |  |  | $ | 38,779 |  |  |  |  |  |  | $ | 469 |  |  | $ | 7,988 |  |  |  |  |  |  |
The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the year ended December 31, 2024 and 2023.
| Year Ended December 31, 2024
| Financial Effect of Loan Modifications
| Payment Delay |  | Term Extension |  |  |  | Interest Rate Reduction |  | Combination Payment Delay & Term Extension |  | Combination Interest Rate Reduction & Term Extension |  |  |  | Combination Interest Rate Reduction, Term Extension, & Payment Delay
Commercial and industrial loans | Provided payment deferrals with weighted average delayed amounts of $180,000. |  | Extended loans by a weighted average of 8 months. |  |  |  | Reduced the weighted average contractual interest rate from 9.00% to 8.00%. |  |  |  | Reduced the weighted average contractual interest rate from 10.24% to 7.90%. Extended loans by a weighted average of 67 months. |  |  |  |
Agricultural land, production and other loans to farmers | Provided payment deferrals with weighted average delayed amounts of $17,000. |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  |  | Extended loans by a weighted average of 6 months. |  |  |  |  |  | Provided payment deferrals with weighted average delayed amounts of $475,000. Extended loans by a weighted average of 2 months. |  |  |  |  |  |
Commercial real estate, non-owner occupied |  |  | Extended loans by a weighted average of 16 months. |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate, owner occupied |  |  | Extended loans by a weighted average of 12 months. |  |  |  |  |  |  |  |  |  |  |  |
Residential | Provided payment deferrals with weighted average delayed amounts of $23,000. |  | Extended loans by a weighted average of 11 months. |  |  |  |  |  | Provided payment deferrals with weighted average delayed amounts of $8,000. Extended loans by a weighted average of 152 months. |  | Reduced the weighted average contractual interest rate from 8.00% to 6.00%. Extended loans by a weighted average of 120 months. |  |  |  | Reduced the weighted average contractual interest rate from 5.74% to 4.02%. Extended loans by a weighted average of 90 months. Provided payment deferrals with weighted average delayed amounts of $13,000.
Home equity |  |  | Extended loans by a weighted average of 5 months. |  |  |  |  |  | Provided payment deferrals with weighted average delayed amounts of $7,800. Extended loans by a weighted average of 60 months. |  |  |  |  |  |
| Year Ended December 31, 2023
| Financial Effect of Loan Modifications |  |  |  |
| Payment Delay |  | Term Extension |  |  |  |  |  | Combination Payment Delay & Term Extension |  | Combination Interest Rate Reduction & Term Extension |  |  |  |
Commercial and industrial loans | Provided payment deferrals with weighted average delayed amounts of $24,000. |  | Extended loans by a weighted average of 10 months. |  |  |  |  |  |  |  | Reduced the weighted average contractual interest rate from 9.67% to 7.39%. Extended loans by a weighted average of 13 months. |  |  |  |
Agricultural land, production and other loans to farmers |  |  | Extended loans by a weighted average of 144 months. |  |  |  |  |  |  |  |  |  |  |  |
Real estate loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  |  | Extended loans by a weighted average of 24 months. |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate, non-owner occupied |  |  | Extended loans by a weighted average of 11 months. |  |  |  |  |  |  |  | Reduced the weighted average contractual interest rate from 8.57% to 7.89%. Extended loans by a weighted average of 34 months. |  |  |  |
Commercial real estate, owner occupied | Provided payment deferrals with weighted average delayed amounts of $4.5 million. |  | Extended loans by a weighted average of 6 months. |  |  |  |  |  |  |  | Reduced the weighted average contractual interest rate from 10.25% to 6.61%. Extended loans by a weighted average of 114 months. |  |  |  |
Residential |  |  | Extended loans by a weighted average of 6 months. |  |  |  |  |  | Provided payment deferrals with weighted average delayed amounts of $3,400. Extended loans by a weighted average of 3 months. |  |  |  |  |  |
Home equity |  |  | Extended loans by a weighted average of 7 months. |  |  |  |  |  |  |  | Reduced the weighted average contractual interest rate from 9.25% to 7.25%. Extended loans by a weighted average of 240 months. |  |  |  |
The Corporation closely monitors the performance of financial difficulty modifications to understand the effectiveness of its efforts. The following tables present the performance of financial difficulty modifications in the twelve months following modification.
| Year Ended December 31, 2024
| Current |  | 30-59 Days Past Due |  | 60-89 Days Past Due |  | 90+ Days Past Due |  | Total
Commercial and industrial loans | $ | 26,208 |  |  | $ | 2,858 |  |  | $ | — |  |  | $ | 1,473 |  |  | $ | 30,539 |
Agricultural land, production and other loans to farmers | 2,230 |  |  | — |  |  | — |  |  | — |  |  | 2,230 |
Real estate loans: |  |  |  |  |  |  |  |  |
Construction | 2,393 |  |  | — |  |  | 22,000 |  |  | — |  |  | 24,393 |
Commercial real estate, non-owner occupied | 10,253 |  |  | — |  |  | — |  |  | 8,680 |  |  | 18,933 |
Commercial real estate, owner occupied | 2,560 |  |  | 3,573 |  |  | — |  |  | — |  |  | 6,133 |
Residential | 2,046 |  |  | 237 |  |  | 365 |  |  | 1,459 |  |  | 4,107 |
Home equity | 222 |  |  | — |  |  | — |  |  | — |  |  | 222 |
Total | $ | 45,912 |  |  | $ | 6,668 |  |  | $ | 22,365 |  |  | $ | 11,612 |  |  | $ | 86,557 |
| Year Ended December 31, 2023
| Current |  |  |  | 60-89 Days Past Due |  |  |  | Total
Commercial and industrial loans | $ | 17,660 |  |  |  |  | $ | — |  |  |  |  | $ | 17,660 |
Agricultural land, production and other loans to farmers | 58 |  |  |  |  | — |  |  |  |  | 58 |
Real estate loans: |  |  |  |  |  |  |  |  |
Construction | 11 |  |  |  |  | — |  |  |  |  | 11 |
Commercial real estate, non-owner occupied | 19,480 |  |  |  |  | — |  |  |  |  | 19,480 |
Commercial real estate, owner occupied | 15,734 |  |  |  |  | — |  |  |  |  | 15,734 |
Residential | 473 |  |  |  |  | 125 |  |  |  |  | 598 |
Home equity | 92 |  |  |  |  | — |  |  |  |  | 92 |
Total | $ | 53,508 |  |  |  |  | $ | 125 |  |  |  |  | $ | 53,633 |
Allowance for Credit Losses on Loans The ACL - Loans is a valuation account that is deducted from the amortized cost basis of loans to present the net amount expected to be collected on loans over the contractual term. The ACL - Loans is adjusted by the provision for credit losses, which is reported in earnings, and reduced by charge-offs for loans, net of recoveries. Provision for credit losses on loans reflects the totality of actions taken on all loans for a particular period including any necessary increases or decreases in the allowance related to changes in credit loss expectations associated with specific loans or pools of loans. Loans are charged off against the allowance when the collectibility of the loan is unlikely. Expected recoveries do not exceed the aggregate of amounts previously charged off and expected to be charged off. The allowance represents the Corporation’s best estimate of current expected credit losses on loans using relevant available information, from internal and external sources, related to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. The current expected credit loss (“CECL”) calculation is performed and evaluated quarterly and losses are estimated over the expected life of the loan. The level of the ACL - Loans is believed to be adequate to absorb all expected future losses inherent in the loan portfolio at the measurement date. In calculating the ACL - Loans, the loan portfolio was pooled into ten loan segments with similar risk characteristics. Common characteristics include the type or purpose of the loan, underlying collateral and historical/expected credit loss patterns. In developing the loan segments, the Corporation analyzed the degree of correlation in how loans within each portfolio respond when subjected to varying economic conditions and scenarios as well as other portfolio stress factors. The expected credit losses are measured over the life of each loan segment utilizing the Probability of Default / Loss Given Default methodology combined with economic forecast models to estimate the current expected credit loss inherent in the loan portfolio. This approach is also leveraged to estimate the expected credit losses associated with unfunded loan commitments incorporating expected utilization rates. The Corporation sub-segmented certain commercial portfolios by risk level and certain consumer portfolios by delinquency status where appropriate. The Corporation utilized a four-quarter reasonable and supportable economic forecast period followed by a six-quarter, straight-line reversion period to the historical macroeconomic mean for the remaining life of the loans. Econometric modeling was performed using historical default rates and a selection of economic forecast scenarios published by Moody’s to develop a range of estimated credit losses for which to determine the best credit loss estimate within. Macroeconomic factors utilized in the modeling process include the national unemployment rate, BBB US corporate index, CRE price index and the home price index. The Corporation qualitatively adjusts model results for risk factors that are not inherently considered in the quantitative modeling process, but are nonetheless relevant in assessing the expected credit losses within the loan portfolio. These adjustments may increase or decrease the estimate of expected credit losses based upon the assessed level of risk for each qualitative factor. The various risks that may be considered in making qualitative adjustments include, among other factors, the impact of (i) changes in the nature and volume of the loan portfolio, (ii) changes in the existence, growth and effect of any concentrations in credit, (iii) changes in lending policies and procedures, including changes in underwriting standards and practices for collections, write-offs, and recoveries, (iv) changes in the quality of the credit review function, (v) changes in the experience, ability and depth of lending, investment, collection and other relevant management staff, (vi) changes in the volume and severity of past due financial assets, the volume of the nonaccrual assets, and the volume and severity of adversely classified or graded assets, (vii) the value of underlying collateral for loans that are not collateral dependent, and (viii) other environmental factors of a borrower such as regulatory, legal and technological considerations, as well as competition and changes in the economic and business conditions that affect the collectability of financial assets. At CECL adoption, the Corporation established certain qualitative factors that were expected to correlate to losses within the loan portfolio. During a scheduled review of qualitative factors in 2023, the Corporation determined there had not been significant evidence of correlation to losses for the qualitative factors that included i) changes in experience, ability and depth of lending management and staff; ii) changes in lending policies and procedures; iii) changes in the quality of the credit review function; iv) portfolio mix and growth; and v) industry concentration. The Corporation decided to refine these qualitative factors in order to improve our ability to assess related risk and enhance our ability to correlate to losses. The Corporation’s evaluation of the qualitative approach resulted in an insignificant change to the ACL – Loans estimate. In some cases, management may determine that an individual loan exhibits unique risk characteristics which differentiate the loan from other loans within the loan segments. In such cases, the loans are evaluated for expected credit losses on an individual basis and excluded from the collective evaluation. Specific reserve allocations of the allowance for credit losses are determined by analyzing the borrower’s ability to repay amounts owed, collateral deficiencies, the relative risk grade of the loan and economic conditions affecting the borrower’s industry, among other factors. A loan is considered to be collateral dependent when, based upon management’s assessment, the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. In such cases, expected credit losses are based on the fair value of the collateral at the measurement date, adjusted for estimated selling costs if satisfaction of the loan depends on the sale of the collateral. The fair value of collateral supporting collateral dependent loans is evaluated on a quarterly basis. The risk characteristics of the Corporation’s portfolio segments are as follows: Commercial Commercial lending is primarily based 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 tangible assets being financed such as equipment or real estate or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee. Other loans may be unsecured, secured but under-collateralized or otherwise made on the basis of the enterprise value of an organization. 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 customers. Commercial real estate Commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. The Corporation monitors commercial real estate loans based on collateral and risk grade criteria, as well as the levels of owner-occupied versus non-owner occupied loans. Construction Construction loans are underwritten utilizing a combination of tools and techniques including feasibility and market studies, independent appraisals and appraisal reviews, absorption and interest rate sensitivity analysis as well as the financial analysis of the developer and all guarantors. Construction loans are monitored by either in house or third party inspectors limiting advances to a percentage of costs or stabilized project value. These loans frequently involve the disbursement of significant funds with the repayment dependent upon the successful completion and, where necessary, the future stabilization of the project. The predominant inherent risk of this portfolio is associated with the borrower’s ability to successfully complete a project on time, within budget and stabilize the projected as originally projected. Consumer and Residential With respect to residential loans that are secured by 1-4 family residences, which are typically owner occupied, the Corporation generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Home equity loans are secured by a subordinate interest in 1-4 family residences, and consumer loans are secured by consumer assets such as automobiles or recreational vehicles. Some consumer loans, such as small installment loans and certain lines of credit, are unsecured. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers and can also be impacted by changes in property values. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. The ACL - Loans decreased $12.2 million during the year ended December 31, 2024. The allowance decreased primarily due to $49.4 million of net charge-offs during the year ended December 31, 2024. The increase in net charge-offs was primarily related to two commercial relationships that accounted for $42.7 million of charge-offs. One borrower experienced a sudden change in revenue from the cancellation and inability to renegotiate their contracts with the U.S. Government. This negatively impacted the value of the borrower’s business and resulted in their inability to repay principal and interest. The second borrower provided notification of its plans to cease operations. The Corporation does not believe these charge-offs are indicative of the portfolio as a whole. In 2024, the Corporation recorded $37.2 million in provision for credit losses - loans, which was offset by a release in reserve of $1.5 million related to the allowance for unfunded commitments, resulting in a net provision expense for the year ended December 31, 2024 of $35.7 million. The following tables summarize changes in the ACL - Loans by loan segment for the years ended December 31, 2024, 2023 and 2022:
| Year Ended December 31, 2024
| Commercial |  | Commercial Real Estate |  | Construction |  |  |  |  |  | Consumer & Residential |  | Total
Allowance for credit losses - loans |  |  |  |  |  |  |  |  |  |  |  |  |
Balances, December 31, 2023 | $ | 97,348 |  |  | $ | 44,048 |  |  | $ | 24,823 |  |  |  |  |  |  | $ | 38,715 |  |  | $ | 204,934 |
Provision for credit losses - loans | 44,455 |  |  | 7,167 |  |  | (15,039) |  |  |  |  |  |  | 617 |  |  | 37,200 |
Recoveries on loans | 3,153 |  |  | 236 |  |  | — |  |  |  |  |  |  | 1,477 |  |  | 4,866 |
Loans charged off | (50,199) |  |  | (352) |  |  | — |  |  |  |  |  |  | (3,692) |  |  | (54,243) |
Balances. December 31, 2024 | $ | 94,757 |  |  | $ | 51,099 |  |  | $ | 9,784 |  |  |  |  |  |  | $ | 37,117 |  |  | $ | 192,757 |
| Year Ended December 31, 2023
| Commercial |  | Commercial Real Estate |  | Construction |  |  |  |  |  | Consumer & Residential |  | Total
Allowance for credit losses - loans |  |  |  |  |  |  |  |  |  |  |  |  |
Balances, December 31, 2022 | $ | 102,216 |  |  | $ | 46,839 |  |  | $ | 28,955 |  |  |  |  |  |  | $ | 45,267 |  |  | $ | 223,277 |
Provision for credit losses - loans | 17,401 |  |  | (2,735) |  |  | (4,132) |  |  |  |  |  |  | (3,234) |  |  | 7,300 |
Recoveries on loans | 995 |  |  | 60 |  |  | — |  |  |  |  |  |  | 1,341 |  |  | 2,396 |
Loans charged off | (23,264) |  |  | (116) |  |  | — |  |  |  |  |  |  | (4,659) |  |  | (28,039) |
Balances. December 31, 2023 | $ | 97,348 |  |  | $ | 44,048 |  |  | $ | 24,823 |  |  |  |  |  |  | $ | 38,715 |  |  | $ | 204,934 |
| Year Ended December 31, 2022
| Commercial |  | Commercial Real Estate |  | Construction |  | Consumer & Residential |  | Total
Allowance for credit losses - loans |  |  |  |  |  |  |  |  |
Balances, December 31, 2021 | $ | 69,935 |  |  | $ | 60,665 |  |  | $ | 20,206 |  |  | $ | 44,591 |  |  | $ | 195,397 |
Provision for credit losses - loans | 16,697 |  |  | (20,425) |  |  | 6,367 |  |  | (2,639) |  |  | — |
CECL Day 1 non-PCD provision for credit losses - loans | 2,957 |  |  | 5,539 |  |  | 871 |  |  | 4,588 |  |  | 13,955 |
CECL Day 1 PCD ACL - loans | 12,970 |  |  | 2,981 |  |  | 648 |  |  | — |  |  | 16,599 |
Recoveries on loans | 872 |  |  | 1,096 |  |  | 863 |  |  | 1,096 |  |  | 3,927 |
Loans charged off | (1,215) |  |  | (3,017) |  |  | — |  |  | (2,369) |  |  | (6,601) |
Balances. December 31, 2022 | $ | 102,216 |  |  | $ | 46,839 |  |  | $ | 28,955 |  |  | $ | 45,267 |  |  | $ | 223,277 |
Off-Balance Sheet Arrangements, Commitments And Contingencies In the normal course of business, the Corporation has entered into off-balance sheet financial instruments which include commitments to extend credit and standby letters of credit. Commitments to extend credit are usually the result of lines of credit granted to existing borrowers under agreements that the total outstanding indebtedness will not exceed a specific amount during the term of the indebtedness. Typical borrowers are commercial concerns that use lines of credit to supplement their treasury management functions, and thus their total outstanding indebtedness may fluctuate during any time period based on the seasonality of their business and the resultant timing for their cash flows. Other typical lines of credit are related to home equity loans granted to customers. Commitments to extend credit generally have fixed expiration dates or other termination clauses that may require a fee. Standby letters of credit are generally issued on behalf of an applicant (the Corporation’s customer) to a specifically named beneficiary and are the result of a particular business arrangement that exists between the applicant and the beneficiary. Standby letters of credit have fixed expiration dates and are usually for terms of two years or less unless terminated beforehand due to criteria specified in the standby letter of credit. The standby letter of credit would permit the beneficiary to obtain payment from the Corporation under certain prescribed circumstances. Subsequently, the Corporation would seek reimbursement from the applicant pursuant to the terms of the standby letter of credit. The Corporation typically follows the same credit policies and underwriting practices when making these commitments as it does for on-balance sheet instruments. Each customer’s creditworthiness is typically evaluated on a case-by-case basis, and the amount of collateral obtained, if any, is based on management’s credit evaluation of the customer. Collateral held varies but may include cash, real estate, marketable securities, accounts receivable, inventory, equipment and personal property. The contractual amounts of these commitments are not reflected in the consolidated financial statements and only amounts drawn upon would be reflected in the future. Since many of the commitments are expected to expire without being drawn upon, the contractual amounts do not necessarily represent future cash requirements. However, should the commitments be drawn upon and should the Corporation’s customers default on their resulting obligation to the Corporation, the maximum exposure to credit loss, without consideration of collateral, is represented by the contractual amount of those commitments. Financial instruments with off-balance sheet risk were as follows:
| December 31, 2024 |  | December 31, 2023
Amounts of commitments: |  |  |
Loan commitments to extend credit | $ | 5,006,085 |  |  | $ | 5,025,790 |
Standby letters of credit | $ | 71,271 |  |  | $ | 65,580 |
The Corporation maintains an accrual for credit losses on off-balance sheet commitments using the CECL methodology. Reserves for unfunded commitments declined by $1.5 million and $3.8 million during the years ended December 31, 2024 and 2023, respectively. This reserve level remains appropriate and is reported in Other Liabilities as of December 31, 2024 in the Consolidated Balance Sheets. The following table details activity in the ACL for off-balance sheet commitments:
| 2024 |  | 2023
Balance, January 1 | $ | 19,500 |  |  | $ | 23,300 |
Provision for credit losses - unfunded commitments | (1,500) |  |  | (3,800) |
Balance, December 31 | $ | 18,000 |  |  | $ | 19,500 |

X
- Definition The entire disclosure for financing receivable. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 12A -Publisher FASB -URI https://asc.fasb.org/1943274/2147481933/310-10-55-12A Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Subparagraph (a)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481962/310-10-50-42 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 44 -Subparagraph (a)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481962/310-10-50-44 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/310-10/tableOfContent Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 310 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/310-20/tableOfContent + Details
Name: | us-gaap_FinancingReceivablesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_ReceivablesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration