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Loan and Lease Financings | 9 Months Ended
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Sep. 30, 2025
Receivables [Abstract] |
Loan and Lease Financings | Loan and Lease Financings The Company evaluates loans and leases for credit quality at least annually, but more frequently if certain circumstances occur (such as material new information which becomes available and indicates a potential change in credit risk). The Company uses two methods to assess credit risk: loan or lease credit quality grades and credit risk classifications. The purpose of the loan or lease credit quality grade is to document the degree of risk associated with individual credits, as well as inform management of the degree of risk in the portfolio taken as a whole. Credit risk classifications are used to categorize loans by degree of risk and to designate individual or committee approval authorities for higher risk credits at the time of origination. Credit risk classifications include categories for: Acceptable, Marginal, Special Attention, Special Risk, Restricted by Policy, Regulated and Prohibited by Law. All loans and leases, except residential real estate loans‚ home equity loans, and consumer loans, are assigned credit quality grades on a scale from 1 to 12, with grade 1 representing superior credit quality. The criteria used to assign grades to extensions of credit that exhibit potential problems or well-defined weaknesses are primarily based upon the degree of risk and the likelihood of orderly repayment, and their effect on the Company’s safety and soundness. Loans or leases graded 7 or weaker are considered “special attention” credits and, as such, relationships in excess of $250,000 are reviewed quarterly as part of management’s evaluation of the appropriateness of the allowance for loan and lease losses. Grade 7 credits are defined as “watch” and contain greater than average credit risk and are monitored to limit the exposure to increased risk; grade 8 credits are “special mention” and, following regulatory guidelines, are defined as having potential weaknesses that deserve management’s close attention. Credits that exhibit well-defined weaknesses and a distinct possibility of loss are considered “classified” and are graded 9 through 12 corresponding to the regulatory definitions of “substandard” (grades 9 and 10) and the more severe “doubtful” (grade 11) and “loss” (grade 12). For residential real estate and home equity and consumer loans, credit quality is based on the aging status of the loan and by payment activity. Nonperforming loans are those loans which are on nonaccrual status or are 90 days or more past due. Below is a summary of the Company’s loan and lease portfolio segments and a discussion of the risk characteristics relevant to each portfolio segment. Commercial and agricultural – loans are to entities within the Company’s local market communities. Loans are for business or agri-business purposes and include working capital lines of credit secured by accounts receivable and inventory that are generally renewable annually and term loans secured by equipment with amortizations based on the expected life of the underlying collateral, generally three to seven years. These loans are typically further supported by personal guarantees. Commercial exposure is to a wide range of industries and services. Risks in this sector are also varied and are most impacted by general economic conditions. Risk mitigants include appropriate underwriting and monitoring and, when appropriate, government guarantees, including Small Business Administration and Farm Service Agency. Renewable energy – loans are for the purpose of financing primarily solar related projects and may include construction draw notes, operating loans, letters of credit and may entail a tax equity structure. Collateral in a multi-state area includes tangible assets of the borrower, assignment of intangible assets including power purchase agreements, and pledges of permits and licenses. Financing is provided to qualified borrowers throughout the continental United States with an emphasis on the regions east of the Rocky Mountains. Auto and light truck – loans are secured by vehicles and borrowers are nationwide. The portfolio consists of multiple industries: auto rental, auto leasing and a small specialty vehicle segment which the Company is largely exiting. Borrowers in the auto rental segment are primarily independent auto rental entities with on-airport and off-airport locations, and some insurance replacement business. Loan terms are relatively short, generally eighteen months, but up to four years. Auto leasing customers lease to businesses and the Company takes assignment of the lease stream and places its lien on the vehicles. Terms are generally longer than the auto rental sector, three to seven years and match the underlying leases. Risks include economic risks and collateral risks, principally used vehicle values. Medium and heavy duty truck – loans and full-service truck leases are secured by heavy-duty trucks, commonly Class 8 trucks, and are generally personally guaranteed. In addition to economic risks, collateral risk is significant. Financing is generally at full cost, plus additional expenditures to get the vehicle operational, such as taxes, insurance and fees. It takes three to four years of debt amortization to reach an equity position in the collateral. Aircraft – loans are to domestic and foreign borrowers with the domestic segment further divided into two pools: 1) personal and business use, and 2) dealers and operators. The Company’s focus for the foreign sector is Latin America, principally Mexico and Brazil. Loans are primarily secured by new and used business jets and helicopters, with appropriate advances, amortizations of ten to fifteen years, and are generally guaranteed by individuals. The most significant risk in the Aircraft portfolio is collateral risk - volatility in underlying values and maintenance concerns. The portfolio is subject to national and global economic risks. Construction equipment – loans are to borrowers throughout the country secured by specific equipment. The borrowers include highway and road builders, asphalt producers and pavers, suppliers of aggregate products, site developers, frac sand operations, general construction equipment dealers and operators, and crane rental entities. Generally, loans include personal guarantees. The construction equipment industry is heavily dependent on the U.S. economy and the global economy. Market growth is reliant on investments from public and private sectors into urbanization and infrastructure projects. Commercial real estate – loans are generally to entities within the local market communities served by the Company with advances generally within regulatory guidelines. Historically, the Company’s exposure to commercial real estate had been primarily to the less risky owner-occupied segment although growth in the non-owner-occupied segment of this portfolio has increased over the last several years. The non-owner-occupied segment includes hotels, apartment complexes and warehousing facilities. There is generally limited exposure to construction loans although at present, construction exposures are comparably higher than previous periods. Many commercial real estate loans carry personal guarantees. Additional risks in the commercial real estate portfolio include interest rate risk, geographical concentration in northern Indiana and southwest Michigan and general economic conditions. Residential real estate and home equity – loans predominantly include one-to-four family mortgages to borrowers in the Company’s local market communities and are appropriately underwritten and secured by residential real estate. Consumer – loans are to individuals in the Company’s local markets and auto loans are generally secured by personal vehicles and appropriately underwritten. The following table shows the amortized cost of loans and leases, segregated by portfolio segment, credit quality rating and year of origination, as of September 30, 2025, and gross charge-offs for the nine months ended September 30, 2025.
| Term Loans and Leases by Origination Year |  |  |
(Dollars in thousands) | 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Revolving Loans | Revolving Loans Converted to Term | Total
Commercial and agricultural |  |  |  |  |  |  |  |  |
Grades 1-6 | $ | 131,344 |  | $ | 99,053 |  | $ | 77,309 |  | $ | 52,156 |  | $ | 24,416 |  | $ | 19,348 |  | $ | 311,409 |  | $ | — |  | $ | 715,035 |
Grades 7-12 | 2,221 |  | 316 |  | 4,626 |  | 1,596 |  | 1,671 |  | 2,130 |  | 31,572 |  | — |  | 44,132 |
Total commercial and agricultural | 133,565 |  | 99,369 |  | 81,935 |  | 53,752 |  | 26,087 |  | 21,478 |  | 342,981 |  | — |  | 759,167 |
Current period gross charge-offs | 199 |  | 32 |  | 159 |  | 146 |  | 9 |  | — |  | 1,578 |  | — |  | 2,123 |
Renewable energy |  |  |  |  |  |  |  |  |
Grades 1-6 | 224,680 |  | 129,668 |  | 83,192 |  | 23,561 |  | 58,227 |  | 84,387 |  | — |  | — |  | 603,715 |
Grades 7-12 | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total renewable energy | 224,680 |  | 129,668 |  | 83,192 |  | 23,561 |  | 58,227 |  | 84,387 |  | — |  | — |  | 603,715 |
Current period gross charge-offs | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Auto and light truck |  |  |  |  |  |  |  |  |
Grades 1-6 | 368,029 |  | 255,366 |  | 125,228 |  | 51,242 |  | 12,657 |  | 6,711 |  | — |  | — |  | 819,233 |
Grades 7-12 | 8,313 |  | 45,084 |  | 49,536 |  | 2,357 |  | 28 |  | 441 |  | — |  | — |  | 105,759 |
Total auto and light truck | 376,342 |  | 300,450 |  | 174,764 |  | 53,599 |  | 12,685 |  | 7,152 |  | — |  | — |  | 924,992 |
Current period gross charge-offs | — |  | 2,010 |  | 129 |  | 226 |  | 1 |  | — |  | — |  | — |  | 2,366 |
Medium and heavy duty truck |  |  |  |  |  |  |  |  |
Grades 1-6 | 79,273 |  | 64,743 |  | 55,907 |  | 50,483 |  | 13,822 |  | 5,801 |  | — |  | 561 |  | 270,590 |
Grades 7-12 | 348 |  | — |  | 1,606 |  | 5,797 |  | 1,961 |  | — |  | — |  | — |  | 9,712 |
Total medium and heavy duty truck | 79,621 |  | 64,743 |  | 57,513 |  | 56,280 |  | 15,783 |  | 5,801 |  | — |  | 561 |  | 280,302 |
Current period gross charge-offs | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Aircraft |  |  |  |  |  |  |  |  |
Grades 1-6 | 237,695 |  | 261,866 |  | 155,190 |  | 238,892 |  | 118,048 |  | 54,786 |  | 6,607 |  | — |  | 1,073,084 |
Grades 7-12 | 2,567 |  | 4,818 |  | 5,061 |  | 6,768 |  | — |  | 3,125 |  | — |  | — |  | 22,339 |
Total aircraft | 240,262 |  | 266,684 |  | 160,251 |  | 245,660 |  | 118,048 |  | 57,911 |  | 6,607 |  | — |  | 1,095,423 |
Current period gross charge-offs | — |  | — |  | 485 |  | — |  | — |  | — |  | — |  | — |  | 485 |
Construction equipment |  |  |  |  |  |  |  |  |
Grades 1-6 | 351,017 |  | 377,138 |  | 234,545 |  | 128,319 |  | 33,987 |  | 18,081 |  | 29,008 |  | 1,578 |  | 1,173,673 |
Grades 7-12 | 2,883 |  | 5,405 |  | 5,243 |  | 9,265 |  | 1,150 |  | 9,827 |  | — |  | — |  | 33,773 |
Total construction equipment | 353,900 |  | 382,543 |  | 239,788 |  | 137,584 |  | 35,137 |  | 27,908 |  | 29,008 |  | 1,578 |  | 1,207,446 |
Current period gross charge-offs | — |  | 201 |  | 1,206 |  | — |  | — |  | — |  | — |  | — |  | 1,407 |
Commercial real estate |  |  |  |  |  |  |  |  |
Grades 1-6 | 169,586 |  | 263,313 |  | 284,164 |  | 202,080 |  | 117,440 |  | 187,005 |  | 56 |  | — |  | 1,223,644 |
Grades 7-12 | 90 |  | 480 |  | 9,621 |  | 3,974 |  | 4,055 |  | 2,442 |  | — |  | — |  | 20,662 |
Total commercial real estate | 169,676 |  | 263,793 |  | 293,785 |  | 206,054 |  | 121,495 |  | 189,447 |  | 56 |  | — |  | 1,244,306 |
Current period gross charge-offs | — |  | 5 |  | — |  | — |  | — |  | 5 |  | — |  | — |  | 10 |
Residential real estate and home equity |  |  |  |  |  |  |  |  |
Performing | 74,705 |  | 79,851 |  | 59,204 |  | 85,563 |  | 74,906 |  | 146,195 |  | 195,015 |  | 7,648 |  | 723,087 |
Nonperforming | — |  | — |  | 466 |  | 612 |  | 214 |  | 735 |  | 1,381 |  | 90 |  | 3,498 |
Total residential real estate and home equity | 74,705 |  | 79,851 |  | 59,670 |  | 86,175 |  | 75,120 |  | 146,930 |  | 196,396 |  | 7,738 |  | 726,585 |
Current period gross charge-offs | — |  | — |  | — |  | 12 |  | — |  | 5 |  | 30 |  | 2 |  | 49 |
Consumer |  |  |  |  |  |  |  |  |
Performing | 31,357 |  | 30,609 |  | 21,534 |  | 16,872 |  | 5,010 |  | 1,429 |  | 14,930 |  | — |  | 121,741 |
Nonperforming | 28 |  | 26 |  | 333 |  | 257 |  | 84 |  | 49 |  | — |  | — |  | 777 |
Total consumer | 31,385 |  | 30,635 |  | 21,867 |  | 17,129 |  | 5,094 |  | 1,478 |  | 14,930 |  | — |  | 122,518 |
Current period gross charge-offs | $ | 434 |  | $ | 216 |  | $ | 131 |  | $ | 177 |  | $ | 44 |  | $ | 6 |  | $ | 21 |  | $ | — |  | $ | 1,029 |
The following table shows the amortized cost of loans and leases, segregated by portfolio segment, credit quality rating and year of origination, as of December 31, 2024 and gross charge-offs for the year ended December 31, 2024.
| Term Loans and Leases by Origination Year |  |  |
(Dollars in thousands) | 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Revolving Loans | Revolving Loans Converted to Term | Total
Commercial and agricultural |  |  |  |  |  |  |  |  |
Grades 1-6 | $ | 136,888 |  | $ | 115,508 |  | $ | 66,696 |  | $ | 36,315 |  | $ | 19,677 |  | $ | 18,369 |  | $ | 331,282 |  | $ | — |  | $ | 724,735 |
Grades 7-12 | 438 |  | 4,079 |  | 7,769 |  | 2,426 |  | 194 |  | 2,325 |  | 31,008 |  | — |  | 48,239 |
Total commercial and agricultural | 137,326 |  | 119,587 |  | 74,465 |  | 38,741 |  | 19,871 |  | 20,694 |  | 362,290 |  | — |  | 772,974 |
Current period gross charge-offs | — |  | 276 |  | 117 |  | 550 |  | — |  | — |  | 8,882 |  | — |  | 9,825 |
Renewable energy |  |  |  |  |  |  |  |  |
Grades 1-6 | 150,951 |  | 145,126 |  | 22,110 |  | 70,606 |  | 22,329 |  | 76,144 |  | — |  | — |  | 487,266 |
Grades 7-12 | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total renewable energy | 150,951 |  | 145,126 |  | 22,110 |  | 70,606 |  | 22,329 |  | 76,144 |  | — |  | — |  | 487,266 |
Current period gross charge-offs | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Auto and light truck |  |  |  |  |  |  |  |  |
Grades 1-6 | 443,033 |  | 276,295 |  | 106,199 |  | 25,535 |  | 10,018 |  | 6,677 |  | — |  | — |  | 867,757 |
Grades 7-12 | 26,131 |  | 48,319 |  | 4,754 |  | 99 |  | 1,210 |  | 165 |  | — |  | — |  | 80,678 |
Total auto and light truck | 469,164 |  | 324,614 |  | 110,953 |  | 25,634 |  | 11,228 |  | 6,842 |  | — |  | — |  | 948,435 |
Current period gross charge-offs | — |  | 165 |  | 448 |  | 6 |  | — |  | 111 |  | — |  | — |  | 730 |
Medium and heavy duty truck |  |  |  |  |  |  |  |  |
Grades 1-6 | 88,395 |  | 72,816 |  | 81,238 |  | 25,726 |  | 11,298 |  | 5,493 |  | — |  | — |  | 284,966 |
Grades 7-12 | — |  | 1,524 |  | 1,623 |  | 690 |  | — |  | 13 |  | — |  | 807 |  | 4,657 |
Total medium and heavy duty truck | 88,395 |  | 74,340 |  | 82,861 |  | 26,416 |  | 11,298 |  | 5,506 |  | — |  | 807 |  | 289,623 |
Current period gross charge-offs | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Aircraft |  |  |  |  |  |  |  |  |
Grades 1-6 | 347,099 |  | 190,776 |  | 285,677 |  | 151,194 |  | 82,208 |  | 32,326 |  | 7,773 |  | — |  | 1,097,053 |
Grades 7-12 | 2,882 |  | 7,704 |  | 10,920 |  | 1,846 |  | 3,392 |  | — |  | — |  | — |  | 26,744 |
Total aircraft | 349,981 |  | 198,480 |  | 296,597 |  | 153,040 |  | 85,600 |  | 32,326 |  | 7,773 |  | — |  | 1,123,797 |
Current period gross charge-offs | — |  | — |  | — |  | 15 |  | — |  | 53 |  | — |  | — |  | 68 |
Construction equipment |  |  |  |  |  |  |  |  |
Grades 1-6 | 488,870 |  | 325,443 |  | 208,114 |  | 70,258 |  | 33,095 |  | 10,890 |  | 25,916 |  | 1,966 |  | 1,164,552 |
Grades 7-12 | 2,716 |  | 10,650 |  | 11,686 |  | 1,679 |  | 12,629 |  | — |  | — |  | — |  | 39,360 |
Total construction equipment | 491,586 |  | 336,093 |  | 219,800 |  | 71,937 |  | 45,724 |  | 10,890 |  | 25,916 |  | 1,966 |  | 1,203,912 |
Current period gross charge-offs | 46 |  | 989 |  | 390 |  | 267 |  | — |  | — |  | — |  | — |  | 1,692 |
Commercial real estate |  |  |  |  |  |  |  |  |
Grades 1-6 | 258,988 |  | 303,717 |  | 237,103 |  | 126,129 |  | 82,249 |  | 177,798 |  | 264 |  | — |  | 1,186,248 |
Grades 7-12 | 145 |  | 14,580 |  | 5,846 |  | 6,386 |  | 27 |  | 2,033 |  | — |  | — |  | 29,017 |
Total commercial real estate | 259,133 |  | 318,297 |  | 242,949 |  | 132,515 |  | 82,276 |  | 179,831 |  | 264 |  | — |  | 1,215,265 |
Current period gross charge-offs | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Residential real estate and home equity |  |  |  |  |  |  |  |  |
Performing | 87,045 |  | 69,439 |  | 94,441 |  | 81,345 |  | 79,575 |  | 85,333 |  | 173,876 |  | 6,210 |  | 677,264 |
Nonperforming | — |  | 171 |  | 624 |  | 346 |  | 103 |  | 340 |  | 1,138 |  | 85 |  | 2,807 |
Total residential real estate and home equity | 87,045 |  | 69,610 |  | 95,065 |  | 81,691 |  | 79,678 |  | 85,673 |  | 175,014 |  | 6,295 |  | 680,071 |
Current period gross charge-offs | — |  | 3 |  | — |  | 32 |  | — |  | — |  | 30 |  | 1 |  | 66 |
Consumer |  |  |  |  |  |  |  |  |
Performing | 43,692 |  | 33,063 |  | 28,594 |  | 10,092 |  | 2,398 |  | 983 |  | 13,823 |  | — |  | 132,645 |
Nonperforming | 22 |  | 352 |  | 336 |  | 57 |  | 33 |  | 20 |  | — |  | — |  | 820 |
Total consumer | 43,714 |  | 33,415 |  | 28,930 |  | 10,149 |  | 2,431 |  | 1,003 |  | 13,823 |  | — |  | 133,465 |
Current period gross charge-offs | $ | 565 |  | $ | 230 |  | $ | 276 |  | $ | 118 |  | $ | 16 |  | $ | 22 |  | $ | 122 |  | $ | — |  | $ | 1,349 |
The following table shows the amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status.
(Dollars in thousands) |  | Current |  | 30-59 Days Past Due |  | 60-89 Days Past Due |  | 90 Days or More Past Due and Accruing |  | Total Accruing |  | Total Nonaccrual |  | Nonaccrual with No Allowance for Credit Loss |  | Total
September 30, 2025 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and agricultural |  | $ | 752,157 |  |  | $ | 1,025 |  |  | $ | 3,637 |  |  | $ | — |  |  | $ | 756,819 |  |  | $ | 2,348 |  |  | $ | 1,320 |  |  | $ | 759,167 |
Renewable energy |  | 603,715 |  |  | — |  |  | — |  |  | — |  |  | 603,715 |  |  | — |  |  | — |  |  | 603,715 |
Auto and light truck |  | 845,587 |  |  | 39,755 |  |  | — |  |  | — |  |  | 885,342 |  |  | 39,650 |  |  | 11,022 |  |  | 924,992 |
Medium and heavy duty truck |  | 278,611 |  |  | 85 |  |  | — |  |  | — |  |  | 278,696 |  |  | 1,606 |  |  | — |  |  | 280,302 |
Aircraft |  | 1,094,311 |  |  | 1,112 |  |  | — |  |  | — |  |  | 1,095,423 |  |  | — |  |  | — |  |  | 1,095,423 |
Construction equipment |  | 1,193,473 |  |  | 535 |  |  | — |  |  | — |  |  | 1,194,008 |  |  | 13,438 |  |  | 12,870 |  |  | 1,207,446 |
Commercial real estate |  | 1,240,260 |  |  | 944 |  |  | 1,837 |  |  | — |  |  | 1,243,041 |  |  | 1,265 |  |  | 714 |  |  | 1,244,306 |
Residential real estate and home equity |  | 720,088 |  |  | 1,937 |  |  | 1,063 |  |  | 305 |  |  | 723,393 |  |  | 3,192 |  |  | — |  |  | 726,585 |
Consumer |  | 120,735 |  |  | 917 |  |  | 89 |  |  | 12 |  |  | 121,753 |  |  | 765 |  |  | — |  |  | 122,518 |
Total |  | $ | 6,848,937 |  |  | $ | 46,310 |  |  | $ | 6,626 |  |  | $ | 317 |  |  | $ | 6,902,190 |  |  | $ | 62,264 |  |  | $ | 25,926 |  |  | $ | 6,964,454 |
December 31, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and agricultural |  | $ | 767,942 |  |  | $ | 275 |  |  | $ | 42 |  |  | $ | — |  |  | $ | 768,259 |  |  | $ | 4,715 |  |  | $ | 3,167 |  |  | $ | 772,974 |
Renewable energy |  | 487,266 |  |  | — |  |  | — |  |  | — |  |  | 487,266 |  |  | — |  |  | — |  |  | 487,266 |
Auto and light truck |  | 943,403 |  |  | 2,226 |  |  | — |  |  | — |  |  | 945,629 |  |  | 2,806 |  |  | 939 |  |  | 948,435 |
Medium and heavy duty truck |  | 289,623 |  |  | — |  |  | — |  |  | — |  |  | 289,623 |  |  | — |  |  | — |  |  | 289,623 |
Aircraft |  | 1,123,797 |  |  | — |  |  | — |  |  | — |  |  | 1,123,797 |  |  | — |  |  | — |  |  | 1,123,797 |
Construction equipment |  | 1,185,936 |  |  | — |  |  | — |  |  | — |  |  | 1,185,936 |  |  | 17,976 |  |  | 17,404 |  |  | 1,203,912 |
Commercial real estate |  | 1,203,967 |  |  | 9,703 |  |  | — |  |  | — |  |  | 1,213,670 |  |  | 1,595 |  |  | 1,055 |  |  | 1,215,265 |
Residential real estate and home equity |  | 675,669 |  |  | 1,010 |  |  | 585 |  |  | 96 |  |  | 677,360 |  |  | 2,711 |  |  | — |  |  | 680,071 |
Consumer |  | 131,585 |  |  | 852 |  |  | 208 |  |  | 10 |  |  | 132,655 |  |  | 810 |  |  | — |  |  | 133,465 |
Total |  | $ | 6,809,188 |  |  | $ | 14,066 |  |  | $ | 835 |  |  | $ | 106 |  |  | $ | 6,824,195 |  |  | $ | 30,613 |  |  | $ | 22,565 |  |  | $ | 6,854,808 |
Accrued interest receivable on loans and leases at September 30, 2025, and December 31, 2024, was $26.49 million and $28.02 million, respectively. A loan or lease is considered collateral-dependent when the borrower is experiencing financial difficulty and the loan or lease is expected to be repaid substantially through the operation or sale of the collateral. Expected credit losses for collateral-dependent loan and leases is based on the fair value of the collateral, adjusted for selling costs as appropriate. Significant quarter over quarter changes are reflective of changes in nonaccrual status and not necessarily associated with credit quality indicators like appraisal value. The following table shows the amortized cost basis of collateral-dependent loans, segregated by portfolio segment, which are individually evaluated to determine credit losses.
(Dollars in thousands) | Real Estate | Equipment | General Business Assets | Total | Allowance on Collateral Dependent Loans and Leases
September 30, 2025 |  |  |  |  |
Commercial and agricultural | $ | — |  | $ | — |  | $ | 1,320 |  | $ | 1,320 |  | $ | — |
Auto and light truck | — |  | 39,073 |  | — |  | 39,073 |  | 823 |
Medium and heavy duty truck | — |  | 1,606 |  | — |  | 1,606 |  | 296 |
Construction equipment | — |  | 13,152 |  | — |  | 13,152 |  | 39 |
Commercial real estate | 714 |  | — |  | — |  | 714 |  | — |
Total | $ | 714 |  | $ | 53,831 |  | $ | 1,320 |  | $ | 55,865 |  | $ | 1,158 |
December 31, 2024 |  |  |  |  |
Commercial and agricultural | $ | — |  | $ | — |  | $ | 4,102 |  | $ | 4,102 |  | $ | 209 |
Auto and light truck | — |  | 939 |  | — |  | 939 |  | — |
Construction equipment | — |  | 17,404 |  | — |  | 17,404 |  | — |
Commercial real estate | 1,055 |  | — |  | — |  | 1,055 |  | — |
Total | $ | 1,055 |  | $ | 18,343 |  | $ | 4,102 |  | $ | 23,500 |  | $ | 209 |
Loan Modifications to Borrowers Experiencing Financial Difficulty The following table shows the amortized cost of loans and leases over $250,000 at September 30, 2025, and September 30, 2024, respectively, that were both experiencing financial difficulty and modified during the three months ended September 30, 2025, and September 30, 2024, respectively, segregated by portfolio segment and type of modification. The percentage of the amortized cost of loans and leases that were modified to borrowers in financial distress as compared to the amortized cost of each segment of financial receivable is also presented below.
(Dollars in thousands) | Payment Delay | Term Extension | Interest Rate Reduction | Combination Payment Delay and Term Extension | % of Total Segment Financing Receivables
Three Months Ended September 30, 2025 |  |  |  |  |
Commercial and agricultural | $ | — |  | $ | — |  | $ | — |  | $ | 300 |  | 0.04 | %
Total | $ | — |  | $ | — |  | $ | — |  | $ | 300 |  | — | %
Three Months Ended September 30, 2024 |  |  |  |  |
Commercial and agricultural | $ | 1,052 |  | $ | 10 |  | $ | — |  | $ | — |  | 0.15 | %
Commercial real estate | 988 |  | — |  | — |  | — |  | 0.09 |
Total | $ | 2,040 |  | $ | 10 |  | $ | — |  | $ | — |  | 0.03 | %
The following table shows the amortized cost of loans and leases over $250,000 at September 30, 2025, and September 30, 2024, respectively, that were both experiencing financial difficulty and modified during the nine months ended September 30, 2025, and September 30, 2024, respectively, segregated by portfolio segment and type of modification. The percentage of the amortized cost of loans and leases that were modified to borrowers in financial distress as compared to the amortized cost of each segment of financial receivable is also presented below.
(Dollars in thousands) | Payment Delay | Term Extension | Interest Rate Reduction | Combination Payment Delay and Term Extension | % of Total Segment Financing Receivables
Nine months ended September 30, 2025 |  |  |  |  |
Commercial and agricultural | $ | — |  | $ | 2,191 |  | $ | — |  | $ | 300 |  | 0.33 | %
Construction equipment | — |  | 463 |  | — |  | — |  | 0.04 |
Total | $ | — |  | $ | 2,654 |  | $ | — |  | $ | 300 |  | 0.04 | %
Nine months ended September 30, 2024 |  |  |  |  |
Commercial and agricultural | $ | 1,052 |  | $ | 118 |  | $ | — |  | $ | — |  | 0.16 | %
Auto and light truck | — |  | — |  | — |  | 28,847 |  | 3.04 |
Commercial real estate | 988 |  | — |  | — |  | — |  | 0.09 |
Total | $ | 2,040 |  | $ | 118 |  | $ | — |  | $ | 28,847 |  | 0.47 | %
There were $4.45 million and $0.00 million in commitments to lend additional amounts to the borrowers included in the previous table at September 30, 2025, and September 30, 2024, respectively. The Company closely monitors the performance of loans and leases that have been modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table shows the performance of such loans and leases that have been modified during the twelve months ended September 30, 2025, and September 30, 2024, respectively.
(Dollars in thousands) | Current | 30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More Past Due | Total Past Due
Twelve months ended September 30, 2025 |  |  |  |  |
Commercial and agricultural | $ | 2,384 |  | $ | 107 |  | $ | — |  | $ | — |  | $ | 107 |
Auto and light truck | — |  | — |  | — |  | 4,928 |  | 4,928 |
Medium and heavy duty truck | 2,369 |  | — |  | — |  | — |  | — |
Construction equipment | 51 |  | 412 |  | — |  | — |  | 412 |
Total | $ | 4,804 |  | $ | 519 |  | $ | — |  | $ | 4,928 |  | $ | 5,447 |
Twelve months ended September 30, 2024 |  |  |  |  |
Commercial and agricultural | $ | 1,170 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |
Auto and light truck | 28,847 |  | — |  | — |  | — |  | — |
Medium and heavy duty truck | 8,645 |  | — |  | — |  | — |  | — |
Commercial real estate | 988 |  | — |  | — |  | — |  | — |
Total | $ | 39,650 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |
The following table shows the financial effect of loan and lease modifications presented above to borrowers experiencing financial difficulty for the twelve months ended September 30, 2025, and September 30, 2024, respectively.
| Weighted- Average Interest Rate Reduction | Weighted- Average Term Extension (in months) | Weighted- Average Payment Delay (in months) | Combination Weighted-Average Payment Delay and Term Extension (in months)
Twelve months ended September 30, 2025 |  |  |  |
Commercial and agricultural | — | % | 11 | 6 | 8
Auto and light truck | — |  | 0 | 0 | 3
Medium and heavy duty truck | — |  | 0 | 0 | 4
Construction equipment | — |  | 5 | 0 | 0
Commercial real estate | — |  | 0 | 6 | 0
Total | — | % | 11 | 6 | 4
Twelve months ended September 30, 2024 |  |  |  |
Commercial and agricultural | — | % | 10 | 6 | 3
Auto and light truck | — |  | 0 | 0 | 3
Medium and heavy duty truck | — |  | 0 | 0 | 6
Commercial real estate | — |  | 0 | 6 | 0
Total | — | % | 10 | 6 | 4
There was one modified loan to a borrower experiencing financial difficulty which had a payment default within twelve months of modification during the nine month period ended September 30, 2025, and one modified loan to a borrower experiencing financial difficulty which had a payment default within twelve months of modification during the nine months ended September 30, 2024. Upon the Company’s determination that a modified loan or lease has subsequently been deemed uncollectible, the loan or lease is written off. Therefore, the amortized cost of the loan is reduced by the uncollectible amount and the allowance for loan and lease losses is adjusted by the same amount.

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