Loans and Lease Receivables and Allowance for Credit Losses

12 Months Ended

Dec. 31, 2024

Loans and Lease Receivables and Allowance for Credit Losses

Note 5—Loans and Lease Receivables and Allowance for Credit Losses

Loan and Lease Receivables

Outstanding loan and lease receivables as of December 31, 2024 and 2023 were categorized as follows:


	2024			2023
Commercial real estate	$	2,351,227		$	2,317,289
Residential real estate		725,425			718,733
Construction, land development, and other land		490,445			528,275
Commercial and industrial		2,612,767			2,444,405
Installment and other		3,901			3,138
Lease financing receivables		709,757			659,686
Total loans and leases		6,893,522			6,671,526
Net unamortized deferred fees and costs		7,122			6,600
Initial direct costs		6,178			6,180
Allowance for credit losses - loans and leases		(97,988	)		(101,686	)
Net loans and leases	$	6,808,834		$	6,582,620


	2024			2023
Lease financing receivables
Net minimum lease payments	$	675,754		$	644,507
Unguaranteed residual values		120,839			92,127
Unearned income		(86,836	)		(76,948	)
Total lease financing receivables		709,757			659,686
Initial direct costs		6,178			6,180
Lease financial receivables before allowance for credits losses - loans and leases	$	715,935		$	665,866

Total loans and leases consist of originated loans and leases, PCD loans, and acquired non-credit-deteriorated loans and leases. At December 31, 2024 and 2023, total loans and leases included the guaranteed amount of U.S. government guaranteed loans of $97.6 million and $93.3 million, respectively. At December 31, 2024 and 2023, the discount on the unguaranteed portion of the U.S. government guaranteed loans was $25.6 million and $26.2 million, respectively, which are included in total loans and leases. At December 31, 2024 and 2023, installment and other loans included overdraft deposits of $1.0 million and $754,000, respectively, which were reclassified as loans. At December 31, 2024 and 2023, loans and loans held for sale pledged as security for borrowings were $2.0 billion and $2.2 billion, respectively.

The minimum annual lease payments for lease financing receivables as of December 31, 2024 are summarized as follows:


	Minimum Lease Payments
2025	$	239,191
2026		198,029
2027		135,490
2028		75,156
2029		25,498
Thereafter		2,390
Total	$	675,754

Note 5—Loans and Lease Receivables and Allowance for Credit Losses (continued)

Originated loans and leases represent originations excluding loans initially acquired in a business combination. However, once an acquired loan reaches its maturity date, and is re-underwritten and renewed, it is internally classified as an originated loan. PCD loans are loans acquired from a business combination with evidence of more than insignificant credit deterioration and are accounted for under ASC Topic 326. Acquired non-credit-deteriorated loans and leases represent loans and leases acquired from a business combination without more than insignificant evidence of credit deterioration and are accounted for under ASC Topic 310-20. The following tables summarize the balances for each respective loan and lease category as of December 31, 2024 and 2023:


2024	Originated		Purchased Credit Deteriorated		Acquired Non-Credit- Deteriorated		Total
Commercial real estate	$	2,071,952	$	82,934	$	199,531	$	2,354,417
Residential real estate		513,422		30,515		182,165		726,102
Construction, land development, and other land		429,596		—		59,673		489,269
Commercial and industrial		2,509,083		14,081		93,969		2,617,133
Installment and other		3,847		105		14		3,966
Lease financing receivables		715,899		—		36		715,935
Total loans and leases	$	6,243,799	$	127,635	$	535,388	$	6,906,822


2023	Originated		Purchased Credit Deteriorated		Acquired Non-Credit- Deteriorated		Total
Commercial real estate	$	1,907,029	$	137,807	$	275,476	$	2,320,312
Residential real estate		465,133		42,510		211,887		719,530
Construction, land development, and other land		415,162		25,331		86,344		526,837
Commercial and industrial		2,311,563		19,460		117,538		2,448,561
Installment and other		2,919		125		156		3,200
Lease financing receivables		665,239		—		627		665,866
Total loans and leases	$	5,767,045	$	225,233	$	692,028	$	6,684,306

PCD loans—The unpaid principal balance and carrying amount of all PCD loans are summarized below. The balances do not include an allowance for credit losses of $4.2 million and $10.0 million, at December 31, 2024 and 2023, respectively.


	2024				2023
	Unpaid Principal Balance		Carrying Value		Unpaid Principal Balance		Carrying Value
Commercial real estate	$	123,780	$	82,934	$	185,007	$	137,807
Residential real estate		75,023		30,515		88,036		42,510
Construction, land development, and other land		6,656		—		32,140		25,331
Commercial and industrial		16,671		14,081		21,870		19,460
Installment and other		769		105		789		125
Total purchased credit deteriorated loans	$	222,899	$	127,635	$	327,842	$	225,233

The following table is a reconciliation of the acquired Inland PCD loans between their purchase price and their par value at the time of acquisition. Refer to Note 3—Acquisition of a Business for further information.


Fair value of loans at acquisition	$	214,573
Allowance for credit losses - loans and leases, at acquisition		10,596
Non-credit discount/premium at acquisition		17,909
Par value of acquired PCD loans at acquisition	$	243,078

Note 5—Loans and Lease Receivables and Allowance for Credit Losses (continued)

Acquired non-credit-deteriorated loans and leases—The unpaid principal balance and carrying value for acquired non‑credit-deteriorated loans and leases, excluding an allowance for credit losses of $3.4 million and $4.7 million at December 31, 2024 and 2023, were as follows:


	2024				2023
	Unpaid Principal Balance		Carrying Value		Unpaid Principal Balance		Carrying Value
Commercial real estate	$	205,558	$	199,531	$	284,819	$	275,476
Residential real estate		194,768		182,165		227,392		211,887
Construction, land development, and other land		60,051		59,673		87,143		86,344
Commercial and industrial		98,156		93,969		123,540		117,538
Installment and other		21		14		170		156
Lease financing receivables		36		36		628		627
Total acquired non-credit-deteriorated loans and leases	$	558,590	$	535,388	$	723,692	$	692,028

The Company hedges interest rates on certain loans using interest rate swaps through which the Company pays variable amounts and receives fixed amounts. Refer to Note 21—Derivative Instruments and Hedging Activities for additional discussion.

Allowance for Credit Losses

The Company adopted CECL on December 31, 2022 and applied it retroactively to the period beginning January 1, 2022 using the modified retrospective method of accounting. Loans and leases considered for inclusion in the allowance for credit losses include acquired non-credit-deteriorated loans and leases, purchased credit deteriorated loans, and originated loans and leases.

The Bank’s credit risk rating methodology assigns risk ratings from 1 to 10, where a higher rating represents higher risk. Risk ratings for all loans of $1.0 million or more are reviewed annually. The risk rating categories are described by the following groupings:

Pass—Ratings 1‑4 define the risk levels of borrowers and guarantors that offer a minimal to an acceptable level of risk.

Watch—A watch asset (rating of 5) has credit exposure that presents higher than average risk and warrants greater than routine attention by Bank personnel due to conditions affecting the borrower, the borrower’s industry or the economic environment.

Special Mention—A special mention asset (rating of 6) has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Company’s credit position at some future date.

Substandard Accrual—A substandard accrual asset (rating of 7) has well‑defined weakness or weaknesses in cash flow and collateral coverage resulting in a distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. This classification may be used in limited cases, where despite credit severity, the borrower is current on payments and there is an agreed plan for credit remediation.

Substandard Non‑Accrual—A substandard asset (rating of 8) has well‑defined weakness or weaknesses in cash flow and collateral coverage resulting in the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

Doubtful—A doubtful asset (rating of 9) has all the weaknesses inherent in one classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.

Loss—A loss asset (rating of 10) is considered uncollectible and of such little value that its continuance as a realizable asset is not warranted.

Revolving loans that are converted to term loans are treated as new originations in the tables below and are presented by year of initial origination. During the years ended December 31, 2024 and 2023, $67.3 million and $52.2 million of revolving loans were converted to term loans, respectively.

The following tables summarize the risk rating categories of the loans and leases considered for inclusion in the allowance for credit losses calculation as of December 31, 2024 and 2023.

Note 5—Loans and Lease Receivables and Allowance for Credit Losses (continued)


	December 31, 2024
	Term loans amortized cost by origination year												Revolving		Total
	2024		2023		2022		2021		2020		Prior		Loans		Loans
Commercial Real Estate
Pass	$	317,250	$	216,761	$	412,057	$	456,671	$	216,103	$	427,163	$	13,741	$	2,059,746
Watch		5,865		36,337		18,184		37,623		32,658		73,394		—		204,061
Special Mention		125		6,546		3,841		6,040		2,531		24,580		—		43,663
Substandard		—		827		4,247		9,376		2,829		29,668		—		46,947
Total	$	323,240	$	260,471	$	438,329	$	509,710	$	254,121	$	554,805	$	13,741	$	2,354,417
Gross charge-offs, year ended December 31, 2024	$	—	$	1,425	$	598	$	282	$	717	$	2,660	$	—	$	5,682

Residential Real Estate
Pass	$	42,468	$	70,603	$	123,124	$	116,874	$	47,982	$	219,558	$	59,323	$	679,932
Watch		—		592		15,890		—		14,005		9,395		1,448		41,330
Special Mention		—		—		—		—		1,351		—		—		1,351
Substandard		—		575		27		95		186		1,593		1,013		3,489
Total	$	42,468	$	71,770	$	139,041	$	116,969	$	63,524	$	230,546	$	61,784	$	726,102
Gross charge-offs, year ended December 31, 2024	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Construction, Land Development, & Other Land
Pass	$	61,645	$	143,414	$	104,421	$	87,816	$	22,188	$	2,800	$	345	$	422,629
Watch		—		2,279		33,871		13,418		—		3,067		—		52,635
Special Mention		—		2,566		1,070		10,369		—		—		—		14,005
Substandard		—		—		—		—		—		—		—		—
Total	$	61,645	$	148,259	$	139,362	$	111,603	$	22,188	$	5,867	$	345	$	489,269
Gross charge-offs, year ended December 31, 2024	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial & Industrial
Pass	$	399,247	$	403,346	$	463,495	$	235,788	$	83,485	$	167,959	$	512,779	$	2,266,099
Watch		1,326		60,040		35,588		31,619		1,991		19,758		63,114		213,436
Special Mention		—		1,298		8,100		21,605		2,951		11,797		30,515		76,266
Substandard		920		5,838		26,235		6,682		2,564		12,690		6,403		61,332
Total	$	401,493	$	470,522	$	533,418	$	295,694	$	90,991	$	212,204	$	612,811	$	2,617,133
Gross charge-offs, year ended December 31, 2024	$	184	$	4,695	$	5,917	$	2,664	$	1,754	$	12,919	$	—	$	28,133

Installment and Other
Pass	$	723	$	298	$	76	$	33	$	1	$	368	$	2,438	$	3,937
Watch		—		—		—		—		—		—		4		4
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		23		—		—		2		25
Total	$	723	$	298	$	76	$	56	$	1	$	368	$	2,444	$	3,966
Gross charge-offs, year ended December 31, 2024	$	—	$	—	$	—	$	—	$	—	$	1	$	—	$	1

Lease Financing Receivables
Pass	$	281,246	$	237,739	$	130,877	$	50,196	$	11,905	$	218	$	—	$	712,181
Watch		280		658		41		—		6		—		—		985
Special Mention		—		—		—		—		116		—		—		116
Substandard		66		598		1,211		765		13		—		—		2,653
Total	$	281,592	$	238,995	$	132,129	$	50,961	$	12,040	$	218	$	—	$	715,935
Gross charge-offs, year ended December 31, 2024	$	—	$	863	$	799	$	649	$	190	$	34	$	—	$	2,535

Total Loans and Leases
Pass	$	1,102,579	$	1,072,161	$	1,234,050	$	947,378	$	381,664	$	818,066	$	588,626	$	6,144,524
Watch		7,471		99,906		103,574		82,660		48,660		105,614		64,566		512,451
Special Mention		125		10,410		13,011		38,014		6,949		36,377		30,515		135,401
Substandard		986		7,838		31,720		16,941		5,592		43,951		7,418		114,446
Total	$	1,111,161	$	1,190,315	$	1,382,355	$	1,084,993	$	442,865	$	1,004,008	$	691,125	$	6,906,822
Gross charge-offs, year ended December 31, 2024	$	184	$	6,983	$	7,314	$	3,595	$	2,661	$	15,614	$	—	$	36,351

Note 5—Loans and Lease Receivables and Allowance for Credit Losses (continued)


	December 31, 2023
	Term loans amortized cost by origination year												Revolving		Total
	2023		2022		2021		2020		2019		Prior		Loans		Loans
Commercial Real Estate
Pass	$	247,856	$	452,127	$	516,624	$	229,053	$	143,283	$	388,872	$	28,360	$	2,006,175
Watch		12,501		22,094		26,408		46,713		20,364		68,003		—		196,083
Special Mention		—		799		10,752		2,618		12,751		25,790		—		52,710
Substandard		—		2,888		5,841		1,771		7,483		46,532		829		65,344
Total	$	260,357	$	477,908	$	559,625	$	280,155	$	183,881	$	529,197	$	29,189	$	2,320,312
Gross charge-offs, year ended December 31, 2023	$	—	$	193	$	60	$	1,511	$	4,054	$	3,911	$	—	$	9,729

Residential Real Estate
Pass	$	55,178	$	135,477	$	104,005	$	54,651	$	37,806	$	225,593	$	57,865	$	670,575
Watch		—		4,811		—		17,417		7,167		8,708		1,597		39,700
Special Mention		—		—		—		3,594		127		1		413		4,135
Substandard		—		—		107		189		349		3,523		952		5,120
Total	$	55,178	$	140,288	$	104,112	$	75,851	$	45,449	$	237,825	$	60,827	$	719,530
Gross charge-offs, year ended December 31, 2023	$	—	$	—	$	—	$	—	$	—	$	21	$	—	$	21

Construction, Land Development, & Other Land
Pass	$	82,449	$	145,174	$	184,544	$	35,466	$	9,772	$	1,429	$	174	$	459,008
Watch		1,392		13,990		21,313		18,716		3,125		—		—		58,536
Special Mention		—		—		9,279		—		—		—		—		9,279
Substandard		—		—		—		—		—		14		—		14
Total	$	83,841	$	159,164	$	215,136	$	54,182	$	12,897	$	1,443	$	174	$	526,837
Gross charge-offs, year ended December 31, 2023	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial & Industrial
Pass	$	475,720	$	514,902	$	288,392	$	109,430	$	73,059	$	147,168	$	524,348	$	2,133,019
Watch		41,027		33,080		50,407		1,385		6,951		18,180		39,531		190,561
Special Mention		—		6,164		10,595		2,631		1,112		6,643		36,354		63,499
Substandard		—		7,332		6,067		6,431		10,116		18,381		13,155		61,482
Total	$	516,747	$	561,478	$	355,461	$	119,877	$	91,238	$	190,372	$	613,388	$	2,448,561
Gross charge-offs, year ended December 31, 2023	$	1,518	$	1,938	$	5,372	$	4,451	$	1,087	$	1,045	$	—	$	15,411

Installment and Other
Pass	$	564	$	132	$	79	$	133	$	28	$	424	$	1,814	$	3,174
Watch		—		—		25		—		—		1		—		26
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Total	$	564	$	132	$	104	$	133	$	28	$	425	$	1,814	$	3,200
Gross charge-offs, year ended December 31, 2023	$	—	$	—	$	—	$	—	$	—	$	3	$	—	$	3

Lease Financing Receivables
Pass	$	327,099	$	207,640	$	93,242	$	29,343	$	5,443	$	856	$	—	$	663,623
Watch		—		67		1,008		16		—		—		—		1,091
Special Mention		—		—		—		179		101		36		—		316
Substandard		259		138		384		55		—		—		—		836
Total	$	327,358	$	207,845	$	94,634	$	29,593	$	5,544	$	892	$	—	$	665,866
Gross charge-offs, year ended December 31, 2023	$	734	$	886	$	549	$	139	$	75	$	54	$	—	$	2,437

Total Loans and Leases
Pass	$	1,188,866	$	1,455,452	$	1,186,886	$	458,076	$	269,391	$	764,342	$	612,561	$	5,935,574
Watch		54,920		74,042		99,161		84,247		37,607		94,892		41,128		485,997
Special Mention		—		6,963		30,626		9,022		14,091		32,470		36,767		129,939
Substandard		259		10,358		12,399		8,446		17,948		68,450		14,936		132,796
Total	$	1,244,045	$	1,546,815	$	1,329,072	$	559,791	$	339,037	$	960,154	$	705,392	$	6,684,306
Gross charge-offs, year ended December 31, 2023	$	2,252	$	3,017	$	5,981	$	6,101	$	5,216	$	5,034	$	—	$	27,601

For the years ended December 31, 2024 and 2023, there were no loans or leases which were risk rated Doubtful or Loss.

Note 5—Loans and Lease Receivables and Allowance for Credit Losses (continued)

The following tables summarize contractual delinquency information of the loans and leases considered for inclusion in the allowance for credit losses - loans and leases calculation at December 31, 2024 and December 31, 2023:


	December 31, 2024
	2024		2023		2022		2021		2020		Prior		Revolving Loans		Total Loans
Commercial Real Estate
Current	$	323,240	$	259,084	$	435,352	$	504,816	$	251,522	$	528,332	$	13,741	$	2,316,087
30-59 Days Past Due		—		560		—		421		278		4,044		—		5,303
60-89 Days Past Due		—		—		—		90		316		5,607		—		6,013
Greater than 90 Accruing		—		—		—		—		—		—		—		—
Non-accrual		—		827		2,977		4,383		2,005		16,822		—		27,014
Total Past Due		—		1,387		2,977		4,894		2,599		26,473		—		38,330
Total	$	323,240	$	260,471	$	438,329	$	509,710	$	254,121	$	554,805	$	13,741	$	2,354,417

Residential Real Estate
Current	$	42,468	$	71,770	$	138,794	$	116,874	$	63,524	$	227,682	$	60,331	$	721,443
30-59 Days Past Due		—		—		220		—		—		1,185		440		1,845
60-89 Days Past Due		—		—		—		—		—		218		—		218
Greater than 90 Accruing		—		—		—		—		—		—		—		—
Non-accrual		—		—		27		95		—		1,461		1,013		2,596
Total Past Due		—		—		247		95		—		2,864		1,453		4,659
Total	$	42,468	$	71,770	$	139,041	$	116,969	$	63,524	$	230,546	$	61,784	$	726,102

Construction, Land Development, & Other Land
Current	$	61,645	$	148,259	$	139,362	$	111,603	$	22,188	$	5,867	$	345	$	489,269
30-59 Days Past Due		—		—		—		—		—		—		—		—
60-89 Days Past Due		—		—		—		—		—		—		—		—
Greater than 90 Accruing		—		—		—		—		—		—		—		—
Non-accrual		—		—		—		—		—		—		—		—
Total Past Due		—		—		—		—		—		—		—		—
Total	$	61,645	$	148,259	$	139,362	$	111,603	$	22,188	$	5,867	$	345	$	489,269

Commercial & Industrial
Current	$	400,574	$	463,578	$	519,192	$	290,304	$	89,163	$	203,606	$	609,806	$	2,576,223
30-59 Days Past Due		142		1,547		2,102		8		294		2,846		150		7,089
60-89 Days Past Due		—		317		1,715		25		705		871		400		4,033
Greater than 90 Accruing		—		—		—		—		—		—		—		—
Non-accrual		777		5,080		10,409		5,357		829		4,881		2,455		29,788
Total Past Due		919		6,944		14,226		5,390		1,828		8,598		3,005		40,910
Total	$	401,493	$	470,522	$	533,418	$	295,694	$	90,991	$	212,204	$	612,811	$	2,617,133

Installment and Other
Current	$	723	$	294	$	76	$	33	$	1	$	368	$	2,442	$	3,937
30-59 Days Past Due		—		—		—		—		—		—		—		—
60-89 Days Past Due		—		4		—		—		—		—		—		4
Greater than 90 Accruing		—		—		—		—		—		—		—		—
Non-accrual		—		—		—		23		—		—		2		25
Total Past Due		—		4		—		23		—		—		2		29
Total	$	723	$	298	$	76	$	56	$	1	$	368	$	2,444	$	3,966

Lease Financing Receivables
Current	$	277,222	$	234,755	$	129,539	$	49,009	$	11,915	$	217	$	—	$	702,657
30-59 Days Past Due		2,890		1,803		795		470		53		—		—		6,011
60-89 Days Past Due		1,414		1,839		584		717		59		1		—		4,614
Greater than 90 Accruing		—		—		—		—		—		—		—		—
Non-accrual		66		598		1,211		765		13		—		—		2,653
Total Past Due		4,370		4,240		2,590		1,952		125		1		—		13,278
Total	$	281,592	$	238,995	$	132,129	$	50,961	$	12,040	$	218	$	—	$	715,935

Total Loans and Leases
Current	$	1,105,872	$	1,177,740	$	1,362,315	$	1,072,639	$	438,313	$	966,072	$	686,665	$	6,809,616
30-59 Days Past Due		3,032		3,910		3,117		899		625		8,075		590		20,248
60-89 Days Past Due		1,414		2,160		2,299		832		1,080		6,697		400		14,882
Greater than 90 Accruing		—		—		—		—		—		—		—		—
Non-accrual		843		6,505		14,624		10,623		2,847		23,164		3,470		62,076
Total Past Due		5,289		12,575		20,040		12,354		4,552		37,936		4,460		97,206
Total	$	1,111,161	$	1,190,315	$	1,382,355	$	1,084,993	$	442,865	$	1,004,008	$	691,125	$	6,906,822

Note 5—Loans and Lease Receivables and Allowance for Credit Losses (continued)


	December 31, 2023
	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total Loans
Commercial Real Estate
Current	$	259,998	$	474,878	$	558,236	$	279,098	$	178,729	$	501,620	$	29,189	$	2,281,748
30-59 Days Past Due		359		648		638		74		3,176		484		—		5,379
60-89 Days Past Due		—		826		—		286		—		1,208		—		2,320
Greater than 90 Accruing		—		—		—		—		—		—		—		—
Non-accrual		—		1,556		751		697		1,976		25,885		—		30,865
Total Past Due		359		3,030		1,389		1,057		5,152		27,577		—		38,564
Total	$	260,357	$	477,908	$	559,625	$	280,155	$	183,881	$	529,197	$	29,189	$	2,320,312

Residential Real Estate
Current	$	55,178	$	136,448	$	102,973	$	75,125	$	45,050	$	230,102	$	59,476	$	704,352
30-59 Days Past Due		—		3,840		1,032		537		29		4,122		399		9,959
60-89 Days Past Due		—		—		—		—		21		127		—		148
Greater than 90 Accruing		—		—		—		—		—		—		—		—
Non-accrual		—		—		107		189		349		3,474		952		5,071
Total Past Due		—		3,840		1,139		726		399		7,723		1,351		15,178
Total	$	55,178	$	140,288	$	104,112	$	75,851	$	45,449	$	237,825	$	60,827	$	719,530

Construction, Land Development, & Other Land
Current	$	83,841	$	156,815	$	215,136	$	54,182	$	12,897	$	1,443	$	174	$	524,488
30-59 Days Past Due		—		—		—		—		—		—		—		—
60-89 Days Past Due		—		2,349		—		—		—		—		—		2,349
Greater than 90 Accruing		—		—		—		—		—		—		—		—
Non-accrual		—		—		—		—		—		—		—		—
Total Past Due		—		2,349		—		—		—		—		—		2,349
Total	$	83,841	$	159,164	$	215,136	$	54,182	$	12,897	$	1,443	$	174	$	526,837

Commercial & Industrial
Current	$	516,747	$	552,251	$	351,534	$	114,859	$	83,780	$	177,239	$	611,766	$	2,408,176
30-59 Days Past Due		—		1,545		1,099		238		2,513		400		455		6,250
60-89 Days Past Due		—		1,505		—		234		3,416		1,139		496		6,790
Greater than 90 Accruing		—		—		—		—		—		—		—		—
Non-accrual		—		6,177		2,828		4,546		1,529		11,594		671		27,345
Total Past Due		—		9,227		3,927		5,018		7,458		13,133		1,622		40,385
Total	$	516,747	$	561,478	$	355,461	$	119,877	$	91,238	$	190,372	$	613,388	$	2,448,561

Installment and Other
Current	$	564	$	132	$	104	$	133	$	28	$	425	$	1,814	$	3,200
30-59 Days Past Due		—		—		—		—		—		—		—		—
60-89 Days Past Due		—		—		—		—		—		—		—		—
Greater than 90 Accruing		—		—		—		—		—		—		—		—
Non-accrual		—		—		—		—		—		—		—		—
Total Past Due		—		—		—		—		—		—		—		—
Total	$	564	$	132	$	104	$	133	$	28	$	425	$	1,814	$	3,200

Lease Financing Receivables
Current	$	325,833	$	206,800	$	93,795	$	29,292	$	5,537	$	889	$	—	$	662,146
30-59 Days Past Due		726		426		153		38		4		2		—		1,349
60-89 Days Past Due		540		481		302		218		3		1		—		1,545
Greater than 90 Accruing		—		—		—		—		—		—		—		—
Non-accrual		259		138		384		45		—		—		—		826
Total Past Due		1,525		1,045		839		301		7		3		—		3,720
Total	$	327,358	$	207,845	$	94,634	$	29,593	$	5,544	$	892	$	—	$	665,866

Total Loans and Leases
Current	$	1,242,161	$	1,527,324	$	1,321,778	$	552,689	$	326,021	$	911,718	$	702,419	$	6,584,110
30-59 Days Past Due		1,085		6,459		2,922		887		5,722		5,008		854		22,937
60-89 Days Past Due		540		5,161		302		738		3,440		2,475		496		13,152
Greater than 90 Accruing		—		—		—		—		—		—		—		—
Non-accrual		259		7,871		4,070		5,477		3,854		40,953		1,623		64,107
Total Past Due		1,884		19,491		7,294		7,102		13,016		48,436		2,973		100,196
Total	$	1,244,045	$	1,546,815	$	1,329,072	$	559,791	$	339,037	$	960,154	$	705,392	$	6,684,306

Note 5—Loans and Lease Receivables and Allowance for Credit Losses (continued)

Total non-accrual loans without an allowance included $6.0 million of commercial real estate loans, $790,000 of residential real estate loans and $3.8 million of commercial and industrial loans as of December 31, 2024. The Company recognized $2.7 million of interest income on non-accrual loans and leases for the year ended December 31, 2024.

Total non-accrual loans without an allowance included $1.6 million of commercial real estate loans, $3.6 million of residential real estate loans and $2.3 million of commercial and industrial loans as of December 31, 2023. The Company recognized $3.8 million of interest income on non-accrual loans and leases for the year ended December 31, 2023.

The following tables summarize the balance and activity within the allowance for credit losses, the components of the allowance for credit losses in terms of loans and leases individually and collectively evaluated for expected credit losses, and corresponding loan and lease balances by type for the years ended December 31, 2024, 2023, and 2022.


2024	Commercial Real Estate			Residential Real Estate			Construction, Land Development, and Other Land			Commercial and Industrial			Installment and Other			Lease Financing Receivables			Total
Allowance for credit losses - loans and leases
Beginning balance	$	33,237		$	3,495		$	2,906		$	53,782		$	36		$	8,230		$	101,686
Provision/(recapture)		(1,172	)		(587	)		(462	)		28,849			10			1,648			28,286
Charge-offs		(5,682	)		—			—			(28,133	)		(1	)		(2,535	)		(36,351	)
Recoveries		1,490			12			1			2,091			—			773			4,367
Ending balance	$	27,873		$	2,920		$	2,445		$	56,589		$	45		$	8,116		$	97,988
Ending balance:
Individually evaluated for impairment	$	6,853		$	67		$	—		$	16,649		$	—		$	—		$	23,569
Collectively evaluated for impairment		21,020			2,853			2,445			39,940			45			8,116			74,419
Total allowance for credit losses - loans and leases	$	27,873		$	2,920		$	2,445		$	56,589		$	45		$	8,116		$	97,988


2024	Commercial Real Estate		Residential Real Estate		Construction, Land Development, and Other Land		Commercial and Industrial		Installment and Other		Lease Financing Receivables		Total
Loans and leases ending balance:
Individually evaluated for impairment	$	36,421	$	1,365	$	—	$	40,712	$	—	$	—	$	78,498
Collectively evaluated for impairment		2,317,996		724,737		489,269		2,576,421		3,966		715,935		6,828,324
Total loans and leases	$	2,354,417	$	726,102	$	489,269	$	2,617,133	$	3,966	$	715,935	$	6,906,822

Note 5—Loans and Lease Receivables and Allowance for Credit Losses (continued)


2023	Commercial Real Estate			Residential Real Estate			Construction, Land Development, and Other Land			Commercial and Industrial			Installment and Other			Lease Financing Receivables			Total
Allowance for credit losses - loans and leases
Beginning balance	$	26,061		$	3,140		$	3,134		$	41,889		$	24		$	7,676		$	81,924
Adjustment for acquired PCD loans		8,230			660			97			1,609			—			—			10,596
Provision/(recapture)		7,237			(402	)		(325	)		23,402			11			2,297			32,220
Charge-offs		(9,729	)		(21	)		—			(15,411	)		(3	)		(2,437	)		(27,601	)
Recoveries		1,438			118			—			2,293			4			694			4,547
Ending balance	$	33,237		$	3,495		$	2,906		$	53,782		$	36		$	8,230		$	101,686
Ending balance:
Individually evaluated for impairment	$	12,361		$	—		$	—		$	14,880		$	—		$	—		$	27,241
Collectively evaluated for impairment		20,876			3,495			2,906			38,902			36			8,230			74,445
Total allowance for credit losses - loans and leases	$	33,237		$	3,495		$	2,906		$	53,782		$	36		$	8,230		$	101,686


2023	Commercial Real Estate		Residential Real Estate		Construction, Land Development, and Other Land		Commercial and Industrial		Installment and Other		Lease Financing Receivables		Total
Loans and leases ending balance:
Individually evaluated for impairment	$	64,339	$	3,593	$	813	$	44,749	$	—	$	—	$	113,494
Collectively evaluated for impairment		2,255,973		715,937		526,024		2,403,812		3,200		665,866		6,570,812
Total loans and leases	$	2,320,312	$	719,530	$	526,837	$	2,448,561	$	3,200	$	665,866	$	6,684,306


2022	Commercial Real Estate			Residential Real Estate			Construction, Land Development, and Other Land			Commercial and Industrial			Installment and Other			Lease Financing Receivables			Total
Allowance for credit losses - loans and leases
Beginning balance pre-CECL adoption	$	16,918		$	1,628		$	522		$	33,129		$	9		$	2,806		$	55,012
Impact of CECL adoption		6,367			1,047			1,191			1,253			9			2,301		$	12,168
Provision/(recapture)		5,252			907			1,476			12,002			(9	)		3,046			22,674
Charge-offs		(3,837	)		(1,208	)		(94	)		(5,377	)		(7	)		(1,472	)		(11,995	)
Recoveries		1,361			766			39			882			22			995			4,065
Ending balance	$	26,061		$	3,140		$	3,134		$	41,889		$	24		$	7,676		$	81,924
Ending balance:
Individually evaluated for impairment	$	6,101		$	—		$	265		$	8,972		$	—		$	—		$	15,338
Collectively evaluated for impairment		19,960			3,140			2,869			32,917			24			7,676			66,586
Total allowance for credit losses - loans and leases	$	26,061		$	3,140		$	3,134		$	41,889		$	24		$	7,676		$	81,924


2022	Commercial Real Estate		Residential Real Estate		Construction, Land Development, and Other Land		Commercial and Industrial		Installment and Other		Lease Financing Receivables		Total
Loans and leases ending balance:
Individually evaluated for impairment	$	37,959	$	879	$	5,541	$	47,846	$	—	$	—	$	92,225
Collectively evaluated for impairment		1,871,529		489,083		433,448		2,009,228		1,759		523,986		5,329,033
Total loans and leases	$	1,909,488	$	489,962	$	438,989	$	2,057,074	$	1,759	$	523,986	$	5,421,258

The Company decreased the allowance for credit losses - loans and leases by $3.7 million for the year ended December 31, 2024. The decrease in allowance for credit losses reflects decreased allowance for credit losses on individually evaluated loans. Commercial and industrial loans increased $168.6 million for the year, which resulted in a $2.8 million increase in ACL. The commercial real estate portfolio grew $34.1 million from prior year. The related ACL for the commercial real estate portfolio decreased primarily due to charge-offs of loans previously reserved for and improvement in classified loans. Additionally, the allocation of ACL to the individually evaluated portfolio decreased $3.7 million during the year due to charge-offs and resolutions of these loans. For the year ended December 31, 2024, the ACL on PCD loans decreased $5.8 million, primarily related to resolutions of PCD loans.

Note 5—Loans and Lease Receivables and Allowance for Credit Losses (continued)

The Company increased the allowance for credit losses - loans and leases by $19.8 million for the year ended December 31, 2023, which included a $10.6 million adjustment for acquired purchased credit deteriorated loans. The remaining increase in allowance for credit losses reflects increased provisions related to loan and lease portfolio growth and increases in individually evaluated loans. Portfolio growth, summarized by loan category in the previous tables, indicates growth in commercial and industrial loans of $391.5 million for the year and a related $11.9 million increase in ACL. The commercial real estate portfolio grew $410.8 million from prior year, resulting in an increase of $7.2 million to ACL. Additionally, the allocation of ACL to the individually evaluated portfolio increased $11.9 million during the year due to migration of classified loans from the collectively evaluated portfolio. For the year ended December 31, 2023, the ACL on PCD loans increased $8.1 million, primarily related to the adjustment for acquired PCD loans as part of the Inland acquisition, net of $1.2 million in charge-offs and $1.2 million in provision recapture.

The Company increased the allowance for credit losses - loans and leases by $26.9 million for the year ended December 31, 2022, which included a $12.2 million cumulative effective adjustment as of January 1, 2022 for the impact of adopting CECL. The remaining increase in current expected credit losses reflects increased provisions related to loan and lease portfolio growth, qualitative adjustments, and increases in individually evaluated loans. Portfolio growth, summarized by loan category in the previous tables, indicates growth in commercial and industrial loans of $474.4 million for the year and a related $7.5 million increase in ACL (excluding the CECL adoption adjustment). The commercial real estate portfolio grew $243.7 million from prior year resulting in an increase of $2.8 million to ACL. An increase in qualitative adjustments was allocated to address economic uncertainty and to address the negative credit impact of increased interest rates based on portfolio classification. Additionally, the allocation of ACL to the individually evaluated portfolio increased $6.9 million during the year due to migration of classified loans from the collectively evaluated portfolio. For the year ended December 31, 2022, the provision for credit losses on PCD loans decreased $1.6 million, primarily related to a $47.0 million decrease in loans outstanding and $341,000 of net recoveries on PCD loans.

The following table presents loans to borrowers experiencing financial difficulty and with modified terms for the year ended December 31, 2024:


December 31, 2024	Term Modification		% of Class of Loans and Leases
Modified loans
Commercial real estate	$	9,405		0.4	%
Construction, land development, and other land		2,566		0.5	%
Commercial and industrial		4,568		0.2	%
Total modified loans	$	16,539		0.2	%

For the year ended December 31, 2024, the financial effect of the term modifications presented above reflects a five months weighted average extension of maturity date.

The following table presents the amortized cost basis of loans that were both experiencing financial difficulty and with modified terms for the year ended December 31, 2023:


December 31, 2023	Payment Delay		Term Modification		Combination Term Modification and Interest Rate Reduction		Total Modified by Class		% of Class of Loans and Leases
Modified loans
Commercial real estate	$	—	$	10,815	$	—	$	10,815		0.5	%
Commercial and industrial		43		62,289		364		62,696		2.6	%
Total modified loans	$	43	$	73,104	$	364	$	73,511		1.1	%

Loans reflected as having a payment delay included a general adjustment in loan terms similar to those of pass-rated credits. The weighted average term extension (in months) for loans modified during the year ended December 31, 2023 was 18 months. Loans having term modifications included extension of term as a result of a new borrower structure and other miscellaneous term adjustments. Loans having a combination of term modification and interest rate reduction reflect a longer amortization period and a reduction in the weighted average contractual rate of 2.69%.

As of December 31, 2024, the amortized cost of commercial real estate loans that had a payment default and were modified in the twelve months prior to default was $2.8 million, which represented 0.11% of outstanding commercial real estate loans.

Note 5—Loans and Lease Receivables and Allowance for Credit Losses (continued)

As of December 31, 2023, the amortized cost of commercial and industrial loans that had a payment default and were modified in the twelve months prior to default was $406,000, which represented 0.02% of outstanding commercial and industrial loans.

Modified loans are either collectively assessed based on portfolio risk segment and risk rating or individually assessed for loans exceeding $500,000. Upon the Company’s determination that a modified loan has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount.

Prior to 2023, trouble debt restructurings were granted due to borrower financial difficulty and provide for a modification of loan repayment terms. TDRs are treated in the same manner as impaired loans for purposes of calculating the allowance for credit losses - loans and leases. The tables below present TDRs by loan category as of December 31, 2022. Refer to Note 1—Summary of Significant Accounting Policies for the accounting policy for TDRs.


2022	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Charge-offs		Individually Evaluated
Accruing:
Commercial real estate		2	$	551	$	551	$	—	$	109
Commercial and industrial		1		24		24		—		34
Residential real estate		2		144		144		—		—
Total accruing		5		719		719		—		143
Non-accruing:
Commercial real estate		3		830		623		207		73
Commercial and industrial		6		2,017		982		1,035		38
Total non-accruing		9		2,847		1,605		1,242		111
Total troubled debt restructurings		14	$	3,566	$	2,324	$	1,242	$	254

There were $2.1 million and $9.1 million of loan commitments outstanding on modified loans at December 31, 2024 or 2023. There were no commitments on outstanding on troubled debt restructurings as of December 31, 2022.

Loans modified as troubled debt restructurings that occurred during the year ended December 31, 2022:


	For the Year Ended December 31,
	2022
Accruing:
Beginning balance	$	1,927
Additions		—
Net payments		(1,208	)
Net transfers (to) from non-accrual		—
Ending balance		719
Non-accruing:
Beginning balance		1,506
Additions		756
Net payments		(536	)
Charge-offs		(121	)
Net transfers (to) from accrual		—
Ending balance		1,605
Total troubled debt restructurings	$	2,324

There were no troubled debt restructurings that subsequently defaulted within 12 months of the restructure date during the year ended December 31, 2022.

Note 5—Loans and Lease Receivables and Allowance for Credit Losses (continued)

The following table presents the amortized cost basis of collateral-dependent loans and leases, which are individually evaluated to determine expected credit losses as of December 31, 2024 and 2023:


2024	Commercial Construction		Non-owner Occupied Commercial		Owner-Occupied Commercial		Multi-Family		Single Family Residence (1st Lien)		Single Family Residence (2nd Lien)		Business Assets		Total
Commercial real estate	$	—	$	6,723	$	29,697	$	—	$	—	$	—	$	—	$	36,420
Residential real estate		—		—		—		—		790		575		—		1,365
Commercial and industrial		—		—		—		—		—		—		30,512		30,512
Total	$	—	$	6,723	$	29,697	$	—	$	790	$	575	$	30,512	$	68,297

2023	Commercial Construction		Non-owner Occupied Commercial		Owner-Occupied Commercial		Multi-Family		Single Family Residence (1st Lien)		Single Family Residence (2nd Lien)		Business Assets		Total
Commercial real estate	$	—	$	28,767	$	35,572	$	—	$	—	$	—	$	—	$	64,339
Residential real estate		—		—		—		2,793		800		—		—		3,593
Construction, land development, and other land		813		—		—		—		—		—		—		813
Commercial and industrial		—		—		—		—		—		—		44,749		44,749
Total	$	813	$	28,767	$	35,572	$	2,793	$	800	$	—	$	44,749	$	113,494

The following table presents the change in balance for allowance for credit losses - unfunded commitments, which are included in the Consolidated Statements of Financial Condition as part of accrued expenses and other liabilities, as of December 31, 2024, 2023 and 2022:


	For the Year Ended December 31,
	2024			2023			2022
Beginning balance	$	3,636		$	4,203		$	1,403
Impact of CECL adoption		—			—			1,595
Provision/(recapture) for/of unfunded commitments		(1,245	)		(567	)		1,205
Ending balance	$	2,391		$	3,636		$	4,203