| LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES |
4. LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES
Commercial Real Estate Loan Sale
On June 26, 2025, the Company completed the sale of performing CRE loans acquired in the Sandy Spring acquisition with an unpaid principal balance of $2.0 billion, which the Company had classified as held for sale as of the April 1, 2025 acquisition date and marked to fair value at $1.8 billion. The CRE loan sale transaction generated a $10.9 million pre-tax gain, net of expenses, for the nine months ended September 30, 2025. Under the terms of the loan purchase agreement, the Company sold the loans without recourse with servicing retained. Servicing rights held by the Company are initially measured at fair value and recorded as an asset or liability and subsequently measured using the amortization method. At the time of the sale, the Company did not recognize any servicing asset or liability, as the contractual servicing fees were equal to market-based adequate compensation for similar servicing.
Loans Held for Investments
The following tables exclude LHFS and include loan balances associated with the Sandy Spring acquisition as of September 30, 2025.
The Company’s LHFI are stated at their face amount, net of deferred fees and costs, and consisted of the following as of the periods ended (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
September 30, 2025 |
|
December 31, 2024 |
Construction and Land Development |
|
|
$ |
2,163,182 |
|
$ |
1,731,108 |
CRE – Owner Occupied |
|
|
|
4,335,919 |
|
|
2,370,119 |
CRE – Non-Owner Occupied |
|
|
|
6,805,302 |
|
|
4,935,590 |
Multifamily Real Estate |
|
|
|
2,196,467 |
|
|
1,240,209 |
Commercial & Industrial |
|
|
|
4,956,770 |
|
|
3,864,695 |
Residential 1-4 Family – Commercial |
|
|
|
1,105,067 |
|
|
719,425 |
Residential 1-4 Family – Consumer |
|
|
|
2,799,669 |
|
|
1,293,817 |
Residential 1-4 Family – Revolving |
|
|
|
1,186,298 |
|
|
756,944 |
Auto |
|
|
|
211,900 |
|
|
316,368 |
Consumer |
|
|
|
121,620 |
|
|
104,882 |
Other Commercial |
|
|
|
1,478,979 |
|
|
1,137,464 |
Total LHFI, net of deferred fees and costs(1) |
|
|
|
27,361,173 |
|
|
18,470,621 |
Allowance for loan and lease losses |
|
|
|
(293,035) |
|
|
(178,644) |
Total LHFI, net |
|
|
$ |
27,068,138 |
|
$ |
18,291,977 |
(1) Total loans included unamortized premiums and discounts and unamortized deferred fees and costs totaling $847.3 million and $220.6 million as of September 30, 2025 and December 31, 2024, respectively.
Accrued interest receivable on LHFI totaled $103.6 million and $73.7 million at September 30, 2025 and December 31, 2024, respectively. Accrued interest receivable write-offs were not material to the Company’s consolidated financial statements for the three and nine months ended September 30, 2025 and 2024.
The following table shows the aging of the Company’s LHFI portfolio by class at September 30, 2025 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Greater than |
|
|
|
|
|
|
|
|
|
|
|
|
30-59 Days |
|
60-89 Days |
|
90 Days and |
|
|
|
|
|
|
|
|
|
Current |
|
Past Due |
|
Past Due |
|
still Accruing |
|
Nonaccrual |
|
Total Loans |
|
Construction and Land Development |
|
$ |
2,092,719 |
|
$ |
1,387 |
|
$ |
5,784 |
|
$ |
1,856 |
|
$ |
61,436 |
|
$ |
2,163,182 |
|
CRE – Owner Occupied |
|
|
4,319,099 |
|
|
5,346 |
|
|
2,217 |
|
|
2,790 |
|
|
6,467 |
|
|
4,335,919 |
|
CRE – Non-Owner Occupied |
|
|
6,785,599 |
|
|
4,295 |
|
|
— |
|
|
2,283 |
|
|
13,125 |
|
|
6,805,302 |
|
Multifamily Real Estate |
|
|
2,187,130 |
|
|
3,113 |
|
|
2,553 |
|
|
2,088 |
|
|
1,583 |
|
|
2,196,467 |
|
Commercial & Industrial |
|
|
4,933,273 |
|
|
4,902 |
|
|
8,397 |
|
|
1,005 |
|
|
9,193 |
|
|
4,956,770 |
|
Residential 1-4 Family – Commercial |
|
|
1,092,236 |
|
|
2,843 |
|
|
803 |
|
|
2,570 |
|
|
6,615 |
|
|
1,105,067 |
|
Residential 1-4 Family – Consumer |
|
|
2,767,900 |
|
|
1,871 |
|
|
3,320 |
|
|
2,955 |
|
|
23,623 |
|
|
2,799,669 |
|
Residential 1-4 Family – Revolving |
|
|
1,173,802 |
|
|
3,074 |
|
|
2,162 |
|
|
1,816 |
|
|
5,444 |
|
|
1,186,298 |
|
Auto |
|
|
207,385 |
|
|
2,744 |
|
|
867 |
|
|
348 |
|
|
556 |
|
|
211,900 |
|
Consumer |
|
|
120,764 |
|
|
329 |
|
|
179 |
|
|
311 |
|
|
37 |
|
|
121,620 |
|
Other Commercial |
|
|
1,475,818 |
|
|
— |
|
|
— |
|
|
— |
|
|
3,161 |
|
|
1,478,979 |
|
Total LHFI, net of deferred fees and costs |
|
$ |
27,155,725 |
|
$ |
29,904 |
|
$ |
26,282 |
|
$ |
18,022 |
|
$ |
131,240 |
|
$ |
27,361,173 |
|
% of total loans |
|
|
99.24 |
% |
|
0.11 |
% |
|
0.10 |
% |
|
0.07 |
% |
|
0.48 |
% |
|
100.00 |
% |
The following table shows the aging of the Company’s LHFI portfolio by class at December 31, 2024 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Greater than |
|
|
|
|
|
|
|
|
|
|
|
|
30-59 Days |
|
60-89 Days |
|
90 Days and |
|
|
|
|
|
|
|
|
|
Current |
|
Past Due |
|
Past Due |
|
still Accruing |
|
Nonaccrual |
|
Total Loans |
|
Construction and Land Development |
|
$ |
1,729,637 |
|
$ |
38 |
|
$ |
— |
|
$ |
120 |
|
$ |
1,313 |
|
$ |
1,731,108 |
|
CRE – Owner Occupied |
|
|
2,362,458 |
|
|
2,080 |
|
|
1,074 |
|
|
1,592 |
|
|
2,915 |
|
|
2,370,119 |
|
CRE – Non-Owner Occupied |
|
|
4,926,168 |
|
|
1,381 |
|
|
— |
|
|
6,874 |
|
|
1,167 |
|
|
4,935,590 |
|
Multifamily Real Estate |
|
|
1,238,711 |
|
|
1,366 |
|
|
— |
|
|
— |
|
|
132 |
|
|
1,240,209 |
|
Commercial & Industrial |
|
|
3,820,564 |
|
|
9,405 |
|
|
69 |
|
|
955 |
|
|
33,702 |
|
|
3,864,695 |
|
Residential 1-4 Family – Commercial |
|
|
715,604 |
|
|
697 |
|
|
665 |
|
|
949 |
|
|
1,510 |
|
|
719,425 |
|
Residential 1-4 Family – Consumer |
|
|
1,266,467 |
|
|
5,928 |
|
|
7,390 |
|
|
1,307 |
|
|
12,725 |
|
|
1,293,817 |
|
Residential 1-4 Family – Revolving |
|
|
747,474 |
|
|
1,824 |
|
|
2,110 |
|
|
1,710 |
|
|
3,826 |
|
|
756,944 |
|
Auto |
|
|
311,354 |
|
|
3,615 |
|
|
456 |
|
|
284 |
|
|
659 |
|
|
316,368 |
|
Consumer |
|
|
103,528 |
|
|
804 |
|
|
486 |
|
|
44 |
|
|
20 |
|
|
104,882 |
|
Other Commercial |
|
|
1,132,960 |
|
|
2,167 |
|
|
2,029 |
|
|
308 |
|
|
— |
|
|
1,137,464 |
|
Total LHFI, net of deferred fees and costs |
|
$ |
18,354,925 |
|
$ |
29,305 |
|
$ |
14,279 |
|
$ |
14,143 |
|
$ |
57,969 |
|
$ |
18,470,621 |
|
% of total loans |
|
|
99.37 |
% |
|
0.16 |
% |
|
0.08 |
% |
|
0.08 |
% |
|
0.31 |
% |
|
100.00 |
% |
The following table shows the Company’s amortized cost basis of loans on nonaccrual status with no related ALLL, a component of the ACL as of the periods ended (dollars in thousands):
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
|
2025 |
|
2024 |
Construction and Land Development |
|
$ |
59,486 |
|
$ |
— |
Commercial Real Estate - Owner Occupied |
|
|
1,430 |
|
|
— |
Commercial Real Estate - Non-Owner Occupied |
|
|
11,532 |
|
|
— |
Multifamily Real Estate |
|
|
1,472 |
|
|
— |
Commercial & Industrial |
|
|
3,199 |
|
|
2,510 |
Residential 1-4 Family - Commercial |
|
|
4,669 |
|
|
— |
Other Commercial |
|
|
1,317 |
|
|
— |
Total LHFI, net of deferred fees and costs |
|
$ |
83,105 |
|
$ |
2,510 |
The increase in the amortized cost basis of loans on nonaccrual status with no related allowance for ALLL was primarily due to PCD loans acquired from Sandy Spring, which were nonperforming at the time of acquisition and were recorded at their amortized cost basis in accordance with ASC 326, Financial Instruments – Credit Losses. There was no interest income recognized on nonaccrual loans during the three and nine months ended September 30, 2025 and 2024.
Troubled Loan Modifications (“TLMs”)
The following tables present the amortized cost basis of loan modifications to borrowers experiencing financial difficulty for the three and nine months ended September 30, (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
2025 |
|
|
2025 |
|
|
|
Amortized Cost |
|
% of Total Class of Financing Receivable |
|
|
Amortized Cost |
|
% of Total Class of Financing Receivable |
|
Other-Than-Insignificant Payment Delay |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and Industrial |
|
$ |
— |
|
— |
% |
|
$ |
1,505 |
|
0.03 |
% |
CRE – Non-Owner Occupied |
|
|
— |
|
— |
% |
|
|
3,790 |
|
0.06 |
% |
Total Other-Than-Insignificant Payment Delay |
|
$ |
— |
|
|
|
|
$ |
5,295 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term Extension |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and Industrial |
|
$ |
25 |
|
NM |
% |
|
$ |
25 |
|
NM |
% |
CRE – Owner Occupied |
|
|
753 |
|
0.02 |
% |
|
|
2,269 |
|
0.05 |
% |
Residential 1-4 Family – Commercial |
|
|
— |
|
— |
% |
|
|
4,633 |
|
0.42 |
% |
Residential 1-4 Family – Consumer |
|
|
433 |
|
0.02 |
% |
|
|
986 |
|
0.04 |
% |
Total Term Extension |
|
$ |
1,211 |
|
|
|
|
$ |
7,913 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combination - Other-Than-Insignificant Payment Delay and Term Extension |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and Industrial |
|
$ |
— |
|
— |
% |
|
$ |
464 |
|
0.01 |
% |
Total Combination - Other-Than-Insignificant Payment Delay and Term Extension |
|
$ |
— |
|
|
|
|
$ |
464 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combination - Term Extension and Interest Rate Reduction |
|
|
|
|
|
|
|
|
|
|
|
|
Residential 1-4 Family - Consumer |
|
$ |
972 |
|
0.03 |
% |
|
$ |
2,476 |
|
0.09 |
% |
Total Combination - Term Extension and Interest Rate Reduction |
|
$ |
972 |
|
|
|
|
$ |
2,476 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
2,183 |
|
|
|
|
$ |
16,148 |
|
|
|
NM = Not Meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
2024 |
|
|
2024 |
|
|
|
Amortized Cost |
|
% of Total Class of Financing Receivable |
|
|
Amortized Cost |
|
% of Total Class of Financing Receivable |
|
Combination - Other-Than-Insignificant Payment Delay and Term Extension |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and Industrial |
|
$ |
— |
|
— |
% |
|
$ |
553 |
|
0.01 |
% |
CRE – Non-Owner Occupied |
|
|
— |
|
— |
% |
|
|
22,175 |
|
0.45 |
% |
Total Combination - Other-Than-Insignificant Payment Delay and Term Extension |
|
$ |
— |
|
|
|
|
$ |
22,728 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term Extension |
|
|
|
|
|
|
|
|
|
|
|
|
Construction and Land Development |
|
$ |
50 |
|
NM |
% |
|
$ |
50 |
|
NM |
% |
Commercial and Industrial |
|
|
141 |
|
NM |
% |
|
|
141 |
|
NM |
% |
CRE – Owner Occupied |
|
|
586 |
|
0.02 |
% |
|
|
586 |
|
0.02 |
% |
Residential 1-4 Family – Consumer |
|
|
236 |
|
0.02 |
% |
|
|
236 |
|
0.02 |
% |
Total Term Extension |
|
$ |
1,013 |
|
|
|
|
$ |
1,013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combination - Term Extension and Interest Rate Reduction |
|
|
|
|
|
|
|
|
|
|
|
|
Residential 1-4 Family – Consumer |
|
$ |
283 |
|
0.02 |
% |
|
$ |
630 |
|
0.05 |
% |
Total Combination - Term Extension and Interest Rate Reduction |
|
$ |
283 |
|
|
|
|
$ |
630 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combination - Interest Rate Reduction, Term Extension and Other-Than-Insignificant Payment Delay |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and Industrial |
|
$ |
— |
|
— |
% |
|
$ |
106 |
|
NM |
% |
Total Combination - Interest Rate Reduction, Term Extension and Other-Than-Insignificant Payment Delay |
|
$ |
— |
|
|
|
|
$ |
106 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
1,296 |
|
|
|
|
$ |
24,477 |
|
|
|
NM = Not Meaningful
The following table describes the financial effects of TLMs on a weighted average basis for TLMs within that loan type for the three and nine months ended September 30,:
|
|
|
|
|
|
|
|
|
Three Months Ended |
2025 |
|
|
|
|
|
|
|
|
|
Term Extension |
Loan Type |
|
Financial Effect |
Residential 1-4 Family - Consumer |
|
Added a weighted-average 0.9 years to the life of loans. |
|
|
|
|
|
|
|
|
|
Nine Months Ended |
2025 |
|
|
|
|
|
|
|
|
|
Term Extension |
Loan Type |
|
Financial Effect |
CRE – Owner Occupied |
|
Added a weighted-average 0.7 years to the life of loans. |
Residential 1-4 Family - Commercial |
|
Added a weighted-average 0.8 years to the life of loans. |
|
|
|
Combination - Term Extension and Interest Rate Reduction |
Loan Type |
|
Financial Effect |
Residential 1-4 Family - Consumer |
|
Added a weighted-average 1.6 years to the life of loans and reduced the weighted average contractual interest rate from 5.0% to 2.1%. |
|
|
|
|
|
|
|
|
|
Three Months Ended |
2024 |
|
|
|
|
|
|
|
|
|
Term Extension |
Loan Type |
|
Financial Effect |
CRE – Owner Occupied |
|
Added a weighted-average 3.0 years to the life of loans. |
|
|
|
|
|
|
|
|
|
Nine Months Ended |
2024 |
|
|
|
|
|
|
|
|
|
Term Extension |
Loan Type |
|
Financial Effect |
CRE – Owner Occupied |
|
Added a weighted-average 3.0 years to the life of loans. |
|
|
|
|
|
|
|
|
|
Combination - Other-Than-Insignificant Payment Delay and Term Extension |
Loan Type |
|
Financial Effect |
Commercial and Industrial |
|
Added a weighted-average 1.0 years to the life of loans. |
CRE – Non-Owner Occupied |
|
Added a weighted-average 1.6 years to the life of loans. |
|
|
|
|
|
|
|
|
|
The Company considers a default of a TLM to occur when the borrower is 90 days past due following the modification or a foreclosure and repossession of the applicable collateral occurs. During the three and nine months ended September 30, 2025 and 2024, the Company did not have any material loans that went into default that had been modified and designated as TLMs in the twelve-month period prior to the time of default.
The Company monitors the performance of TLMs to determine the effectiveness of the modifications. During the three and nine months ended September 30, 2025 and 2024, the Company did not have any material loans that had been modified and designated as TLMs that were past due.
As of September 30, 2025 and December 31, 2024, there were no material unfunded commitments on loans modified and designated as TLMs.
Allowance for Loan and Lease Losses
ALLL on the loan portfolio is a material estimate for the Company. The Company estimates its ALLL on its loan portfolio on a quarterly basis. The Company models the ALLL using two primary segments, Commercial and Consumer. Each loan segment is further disaggregated into classes based on similar risk characteristics. The Company has identified the following classes within each loan segment:
|
● |
Commercial: Construction and Land Development, CRE – Owner Occupied, CRE – Non-Owner Occupied, Multifamily Real Estate, Commercial & Industrial, Residential 1-4 Family – Commercial, and Other Commercial
|
|
● |
Consumer: Residential 1-4 Family – Consumer, Residential 1-4 Family – Revolving, Auto, and Consumer
|
The following tables show the ALLL activity by loan segment for the three and nine months ended September 30, (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
2025 |
|
2025 |
|
|
Commercial |
|
Consumer |
|
Total |
|
Commercial |
|
Consumer |
|
Total |
Balance at beginning of period |
|
$ |
257,403 |
|
$ |
58,171 |
|
$ |
315,574 |
|
$ |
148,887 |
|
$ |
29,757 |
|
$ |
178,644 |
Initial allowance on Sandy Spring PCD loans (1) |
|
|
— |
|
|
— |
|
|
— |
|
|
21,255 |
|
|
7,010 |
|
|
28,265 |
Loans charged-off (1) |
|
|
(39,575) |
|
|
(865) |
|
|
(40,440) |
|
|
(42,958) |
|
|
(2,947) |
|
|
(45,905) |
Recoveries credited to allowance |
|
|
1,223 |
|
|
624 |
|
|
1,847 |
|
|
2,999 |
|
|
1,369 |
|
|
4,368 |
Initial Provision - Sandy Spring non-PCD loans |
|
|
— |
|
|
— |
|
|
— |
|
|
64,740 |
|
|
24,798 |
|
|
89,538 |
Provision charged to operations |
|
|
14,708 |
|
|
1,346 |
|
|
16,054 |
|
|
38,836 |
|
|
(711) |
|
|
38,125 |
Balance at end of period |
|
$ |
233,759 |
|
$ |
59,276 |
|
$ |
293,035 |
|
$ |
233,759 |
|
$ |
59,276 |
|
$ |
293,035 |
(1) In accordance with GAAP, amounts for the three months and nine months ended September 30, 2025 exclude $19.0 million, and $53.5 million, respectively, of net charge-offs related to certain PCD loans that met the Company’s charge-off policy at the time of the acquisition. The amounts excluded for the three months ended September 30, 2025 related to a measurement period adjustment recorded in the third quarter of 2025 associated with the Sandy Spring acquisition, based on additional information and evidence obtained by the Company relating to events or circumstances existing at the acquisition date.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
2024 |
|
2024 |
|
|
Commercial |
|
Consumer |
|
Total |
|
Commercial |
|
Consumer |
|
Total |
Balance at beginning of period |
|
$ |
131,139 |
|
$ |
26,992 |
|
$ |
158,131 |
|
$ |
105,896 |
|
$ |
26,286 |
|
$ |
132,182 |
Initial allowance on American National PCD loans |
|
|
— |
|
|
— |
|
|
— |
|
|
2,609 |
|
|
1,287 |
|
|
3,896 |
Loans charged-off |
|
|
(1,642) |
|
|
(1,077) |
|
|
(2,719) |
|
|
(8,675) |
|
|
(3,026) |
|
|
(11,701) |
Recoveries credited to allowance |
|
|
1,292 |
|
|
761 |
|
|
2,053 |
|
|
2,881 |
|
|
1,497 |
|
|
4,378 |
Initial Provision - American National non-PCD loans |
|
|
— |
|
|
— |
|
|
— |
|
|
11,213 |
|
|
2,016 |
|
|
13,229 |
Provision charged to operations |
|
|
1,931 |
|
|
1,289 |
|
|
3,220 |
|
|
18,796 |
|
|
(95) |
|
|
18,701 |
Balance at end of period |
|
$ |
132,720 |
|
$ |
27,965 |
|
$ |
160,685 |
|
$ |
132,720 |
|
$ |
27,965 |
|
$ |
160,685 |
The following table presents additional information related to the acquired Sandy Spring loan portfolio at the acquisition date, including the initial ACL at acquisition on the PCD loans (dollars in thousands):
|
|
|
|
PCD Loans |
|
|
April 1, 2025 |
Book value of acquired loans at acquisition (1) |
|
$ |
1,724,771 |
Initial ACL at acquisition (2) |
|
|
(28,265) |
Non-credit discount at acquisition |
|
|
(162,140) |
Purchase Price |
|
$ |
1,534,366 |
|
|
|
|
Non-PCD Loans: |
|
|
|
Fair Value |
|
$ |
7,077,565 |
Gross contractual amounts receivable |
|
|
7,676,836 |
Estimate of contractual cash flows not expected to be collected |
|
|
130,113 |
(1) The Company recorded a $19.0 million measurement period adjustment during the three months ended September 30, 2025 associated with the Sandy Spring acquisition, based on additional information and evidence obtained by the Company relating to events or circumstances existing at the acquisition date, reducing the book value of loans acquired at acquisition.
(2) In accordance with GAAP, the amounts exclude $53.5 million of net charge-offs related to certain PCD loans that met the Company’s charge-off policy at the time of the acquisition.
Credit Quality Indicators
Credit quality indicators are used to help estimate the collectability of each loan class within the Commercial and Consumer loan segments. For classes of loans within the Commercial segment, the primary credit quality indicator used for evaluating credit quality and estimating the ALLL is risk rating categories of Pass (including Pass-Watch), Special Mention, Substandard, and Doubtful. For classes of loans within the Consumer segment, the primary credit quality indicator used for evaluating credit quality and estimating ALLL is delinquency bands of current, 30-59, 60-89, 90+, and nonaccrual. While other credit quality indicators are evaluated and analyzed as part of the Company’s credit risk management activities, these indicators are primarily used in estimating the ALLL. The Company evaluates the credit risk of its loan portfolio on at least a quarterly basis.
Refer to Note 1 “Summary of Significant Accounting Policies” in the “Notes to the Consolidated Financial Statements” contained in Item 8 “Financial Statements and Supplementary Data” in the Company’s 2024 Form 10-K for additional information on the Company’s policies and for further information on the Company’s credit quality indicators.
Commercial Loans
The Company uses a risk rating system as the primary credit quality indicator for classes of loans within the Commercial segment. The Company defines pass loans as risk rated 1-5 and criticized loans as risk rated 6-9. See Note 4 “Loans and
Allowance For Loan and Lease Losses” in the “Notes to Consolidated Financial Statements” contained in Item 8 “Financial Statements and Supplementary Data” of the Company’s 2024 Form 10-K for information on the Company’s risk rating system.
The table below details the amortized cost and gross write-offs of the classes of loans within the Commercial segment by risk level and year of origination as of September 30, (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
|
|
Term Loans Amortized Cost Basis by Origination Year |
|
Revolving |
|
|
|
|
|
2025 |
|
2024 |
|
2023 |
|
2022 |
|
2021 |
|
Prior |
|
Loans |
|
Total |
Construction and Land Development |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
376,118 |
|
$ |
531,272 |
|
$ |
328,884 |
|
$ |
270,350 |
|
$ |
39,584 |
|
$ |
77,746 |
|
$ |
282,076 |
|
$ |
1,906,030 |
Watch |
|
|
11,861 |
|
|
1,750 |
|
|
4,655 |
|
|
1,953 |
|
|
34,969 |
|
|
3,188 |
|
|
11,262 |
|
|
69,638 |
Special Mention |
|
|
275 |
|
|
2,985 |
|
|
1,140 |
|
|
30,120 |
|
|
2,611 |
|
|
4,062 |
|
|
— |
|
|
41,193 |
Substandard |
|
|
1,122 |
|
|
1,321 |
|
|
662 |
|
|
32,361 |
|
|
29,692 |
|
|
8,472 |
|
|
72,691 |
|
|
146,321 |
Total Construction and Land Development |
|
$ |
389,376 |
|
$ |
537,328 |
|
$ |
335,341 |
|
$ |
334,784 |
|
$ |
106,856 |
|
$ |
93,468 |
|
$ |
366,029 |
|
$ |
2,163,182 |
Current period gross write-off |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(32) |
|
$ |
(3) |
|
$ |
— |
|
$ |
(35) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CRE – Owner Occupied |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
260,610 |
|
$ |
316,012 |
|
$ |
310,695 |
|
$ |
521,694 |
|
$ |
534,798 |
|
$ |
1,945,013 |
|
$ |
90,438 |
|
$ |
3,979,260 |
Watch |
|
|
8,042 |
|
|
14,905 |
|
|
20,716 |
|
|
12,635 |
|
|
6,011 |
|
|
65,227 |
|
|
2,025 |
|
|
129,561 |
Special Mention |
|
|
4,327 |
|
|
8,601 |
|
|
13,117 |
|
|
10,483 |
|
|
6,568 |
|
|
62,445 |
|
|
1,119 |
|
|
106,660 |
Substandard |
|
|
231 |
|
|
5,559 |
|
|
7,637 |
|
|
5,252 |
|
|
30,494 |
|
|
70,992 |
|
|
140 |
|
|
120,305 |
Doubtful |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
133 |
|
|
— |
|
|
133 |
Total CRE – Owner Occupied |
|
$ |
273,210 |
|
$ |
345,077 |
|
$ |
352,165 |
|
$ |
550,064 |
|
$ |
577,871 |
|
$ |
2,143,810 |
|
$ |
93,722 |
|
$ |
4,335,919 |
Current period gross write-off |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(147) |
|
$ |
— |
|
$ |
(147) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CRE – Non-Owner Occupied |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
489,891 |
|
$ |
406,801 |
|
$ |
814,051 |
|
$ |
986,896 |
|
$ |
777,370 |
|
$ |
2,756,749 |
|
$ |
78,612 |
|
$ |
6,310,370 |
Watch |
|
|
— |
|
|
558 |
|
|
12,582 |
|
|
21,314 |
|
|
24,148 |
|
|
60,975 |
|
|
13,484 |
|
|
133,061 |
Special Mention |
|
|
— |
|
|
1,741 |
|
|
31,028 |
|
|
28,697 |
|
|
48,756 |
|
|
82,191 |
|
|
— |
|
|
192,413 |
Substandard |
|
|
— |
|
|
— |
|
|
6,268 |
|
|
44,374 |
|
|
1,135 |
|
|
117,635 |
|
|
46 |
|
|
169,458 |
Total CRE – Non-Owner Occupied |
|
$ |
489,891 |
|
$ |
409,100 |
|
$ |
863,929 |
|
$ |
1,081,281 |
|
$ |
851,409 |
|
$ |
3,017,550 |
|
$ |
92,142 |
|
$ |
6,805,302 |
Current period gross write-off |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial & Industrial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
877,993 |
|
$ |
806,060 |
|
$ |
474,593 |
|
$ |
540,182 |
|
$ |
272,984 |
|
$ |
379,300 |
|
$ |
1,079,267 |
|
$ |
4,430,379 |
Watch |
|
|
16,001 |
|
|
43,207 |
|
|
23,111 |
|
|
61,779 |
|
|
9,649 |
|
|
21,708 |
|
|
134,007 |
|
|
309,462 |
Special Mention |
|
|
2,003 |
|
|
12,151 |
|
|
8,536 |
|
|
9,051 |
|
|
4,459 |
|
|
6,804 |
|
|
45,071 |
|
|
88,075 |
Substandard |
|
|
133 |
|
|
11,752 |
|
|
34,274 |
|
|
23,256 |
|
|
13,032 |
|
|
5,420 |
|
|
39,600 |
|
|
127,467 |
Doubtful |
|
|
2 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,385 |
|
|
1,387 |
Total Commercial & Industrial |
|
$ |
896,132 |
|
$ |
873,170 |
|
$ |
540,514 |
|
$ |
634,268 |
|
$ |
300,124 |
|
$ |
413,232 |
|
$ |
1,299,330 |
|
$ |
4,956,770 |
Current period gross write-off |
|
$ |
— |
|
$ |
(1,605) |
|
$ |
(69) |
|
$ |
(1,209) |
|
$ |
— |
|
$ |
(94) |
|
$ |
(34,500) |
|
$ |
(37,477) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multifamily Real Estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
153,774 |
|
$ |
75,590 |
|
$ |
281,686 |
|
$ |
396,790 |
|
$ |
280,010 |
|
$ |
603,912 |
|
$ |
57,041 |
|
$ |
1,848,803 |
Watch |
|
|
— |
|
|
— |
|
|
14,076 |
|
|
27,968 |
|
|
99,511 |
|
|
5,970 |
|
|
1,313 |
|
|
148,838 |
Special Mention |
|
|
— |
|
|
672 |
|
|
— |
|
|
11,396 |
|
|
28,173 |
|
|
17,449 |
|
|
— |
|
|
57,690 |
Substandard |
|
|
— |
|
|
728 |
|
|
— |
|
|
39,072 |
|
|
25,741 |
|
|
75,595 |
|
|
— |
|
|
141,136 |
Total Multifamily Real Estate |
|
$ |
153,774 |
|
$ |
76,990 |
|
$ |
295,762 |
|
$ |
475,226 |
|
$ |
433,435 |
|
$ |
702,926 |
|
$ |
58,354 |
|
$ |
2,196,467 |
Current period gross write-off |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential 1-4 Family – Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
74,347 |
|
$ |
58,644 |
|
$ |
80,659 |
|
$ |
186,893 |
|
$ |
175,518 |
|
$ |
434,519 |
|
$ |
3,909 |
|
$ |
1,014,489 |
Watch |
|
|
575 |
|
|
2,233 |
|
|
1,227 |
|
|
4,402 |
|
|
1,134 |
|
|
15,404 |
|
|
3,105 |
|
|
28,080 |
Special Mention |
|
|
1,240 |
|
|
353 |
|
|
— |
|
|
23,696 |
|
|
1,543 |
|
|
17,826 |
|
|
— |
|
|
44,658 |
Substandard |
|
|
350 |
|
|
— |
|
|
— |
|
|
636 |
|
|
4,373 |
|
|
12,228 |
|
|
253 |
|
|
17,840 |
Total Residential 1-4 Family – Commercial |
|
$ |
76,512 |
|
$ |
61,230 |
|
$ |
81,886 |
|
$ |
215,627 |
|
$ |
182,568 |
|
$ |
479,977 |
|
$ |
7,267 |
|
$ |
1,105,067 |
Current period gross write-off |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(38) |
|
$ |
— |
|
$ |
(38) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
219,877 |
|
$ |
227,095 |
|
$ |
174,991 |
|
$ |
159,652 |
|
$ |
174,644 |
|
$ |
214,501 |
|
$ |
255,682 |
|
$ |
1,426,442 |
Watch |
|
|
— |
|
|
— |
|
|
121 |
|
|
19,140 |
|
|
797 |
|
|
5,854 |
|
|
10 |
|
|
25,922 |
Special Mention |
|
|
— |
|
|
— |
|
|
2,045 |
|
|
304 |
|
|
187 |
|
|
9,624 |
|
|
2,014 |
|
|
14,174 |
Substandard |
|
|
— |
|
|
— |
|
|
2,337 |
|
|
3,641 |
|
|
2,114 |
|
|
1,359 |
|
|
2,990 |
|
|
12,441 |
Total Other Commercial |
|
$ |
219,877 |
|
$ |
227,095 |
|
$ |
179,494 |
|
$ |
182,737 |
|
$ |
177,742 |
|
$ |
231,338 |
|
$ |
260,696 |
|
$ |
1,478,979 |
Current period gross write-off |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(2,617) |
|
$ |
— |
|
$ |
(2,644) |
|
$ |
— |
|
$ |
(5,261) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
2,452,610 |
|
$ |
2,421,474 |
|
$ |
2,465,559 |
|
$ |
3,062,457 |
|
$ |
2,254,908 |
|
$ |
6,411,740 |
|
$ |
1,847,025 |
|
$ |
20,915,773 |
Watch |
|
|
36,479 |
|
|
62,653 |
|
|
76,488 |
|
|
149,191 |
|
|
176,219 |
|
|
178,326 |
|
|
165,206 |
|
|
844,562 |
Special Mention |
|
|
7,845 |
|
|
26,503 |
|
|
55,866 |
|
|
113,747 |
|
|
92,297 |
|
|
200,401 |
|
|
48,204 |
|
|
544,863 |
Substandard |
|
|
1,836 |
|
|
19,360 |
|
|
51,178 |
|
|
148,592 |
|
|
106,581 |
|
|
291,701 |
|
|
115,720 |
|
|
734,968 |
Doubtful |
|
|
2 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
133 |
|
|
1,385 |
|
|
1,520 |
Total Commercial |
|
$ |
2,498,772 |
|
$ |
2,529,990 |
|
$ |
2,649,091 |
|
$ |
3,473,987 |
|
$ |
2,630,005 |
|
$ |
7,082,301 |
|
$ |
2,177,540 |
|
$ |
23,041,686 |
Total current period gross write-off |
|
$ |
— |
|
$ |
(1,605) |
|
$ |
(69) |
|
$ |
(3,826) |
|
$ |
(32) |
|
$ |
(2,926) |
|
$ |
(34,500) |
|
$ |
(42,958) |
The table below details the amortized cost and gross write-offs of the classes of loans within the Commercial segment by risk level and year of origination as of December 31, (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
|
Term Loans Amortized Cost Basis by Origination Year |
|
Revolving |
|
|
|
|
|
2024 |
|
2023 |
|
2022 |
|
2021 |
|
2020 |
|
Prior |
|
Loans |
|
Total |
Construction and Land Development |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
350,344 |
|
$ |
630,033 |
|
$ |
372,483 |
|
$ |
120,851 |
|
$ |
14,180 |
|
$ |
46,671 |
|
$ |
120,240 |
|
$ |
1,654,802 |
Watch |
|
|
3 |
|
|
22,790 |
|
|
18,172 |
|
|
384 |
|
|
— |
|
|
717 |
|
|
— |
|
|
42,066 |
Special Mention |
|
|
739 |
|
|
1,771 |
|
|
1,629 |
|
|
226 |
|
|
1,332 |
|
|
1,139 |
|
|
— |
|
|
6,836 |
Substandard |
|
|
162 |
|
|
80 |
|
|
22,237 |
|
|
745 |
|
|
1,467 |
|
|
2,713 |
|
|
— |
|
|
27,404 |
Total Construction and Land Development |
|
$ |
351,248 |
|
$ |
654,674 |
|
$ |
414,521 |
|
$ |
122,206 |
|
$ |
16,979 |
|
$ |
51,240 |
|
$ |
120,240 |
|
$ |
1,731,108 |
Current period gross write-off |
|
$ |
— |
|
$ |
— |
|
$ |
(1,109) |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(1,109) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CRE – Owner Occupied |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
152,865 |
|
$ |
243,842 |
|
$ |
293,260 |
|
$ |
262,430 |
|
$ |
248,187 |
|
$ |
1,014,962 |
|
$ |
27,316 |
|
$ |
2,242,862 |
Watch |
|
|
4,455 |
|
|
1,391 |
|
|
1,424 |
|
|
1,854 |
|
|
2,507 |
|
|
35,093 |
|
|
79 |
|
|
46,803 |
Special Mention |
|
|
1,153 |
|
|
6,659 |
|
|
1,577 |
|
|
2,102 |
|
|
2,266 |
|
|
11,556 |
|
|
2,389 |
|
|
27,702 |
Substandard |
|
|
24,722 |
|
|
1,188 |
|
|
1,921 |
|
|
352 |
|
|
2,433 |
|
|
21,996 |
|
|
140 |
|
|
52,752 |
Total CRE – Owner Occupied |
|
$ |
183,195 |
|
$ |
253,080 |
|
$ |
298,182 |
|
$ |
266,738 |
|
$ |
255,393 |
|
$ |
1,083,607 |
|
$ |
29,924 |
|
$ |
2,370,119 |
Current period gross write-off |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(354) |
|
$ |
— |
|
$ |
(354) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CRE – Non-Owner Occupied |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
349,991 |
|
$ |
514,460 |
|
$ |
692,155 |
|
$ |
835,195 |
|
$ |
381,544 |
|
$ |
1,838,343 |
|
$ |
40,741 |
|
$ |
4,652,429 |
Watch |
|
|
— |
|
|
150 |
|
|
7,465 |
|
|
11,855 |
|
|
— |
|
|
70,113 |
|
|
13,013 |
|
|
102,596 |
Special Mention |
|
|
384 |
|
|
— |
|
|
18,342 |
|
|
883 |
|
|
7,387 |
|
|
47,286 |
|
|
— |
|
|
74,282 |
Substandard |
|
|
— |
|
|
12,609 |
|
|
— |
|
|
1,130 |
|
|
36,796 |
|
|
55,677 |
|
|
71 |
|
|
106,283 |
Total CRE – Non-Owner Occupied |
|
$ |
350,375 |
|
$ |
527,219 |
|
$ |
717,962 |
|
$ |
849,063 |
|
$ |
425,727 |
|
$ |
2,011,419 |
|
$ |
53,825 |
|
$ |
4,935,590 |
Current period gross write-off |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(3,386) |
|
$ |
— |
|
$ |
— |
|
$ |
(3,386) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial & Industrial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
787,683 |
|
$ |
593,676 |
|
$ |
534,064 |
|
$ |
300,348 |
|
$ |
124,214 |
|
$ |
227,352 |
|
$ |
982,085 |
|
$ |
3,549,422 |
Watch |
|
|
2,458 |
|
|
30,428 |
|
|
48,661 |
|
|
6,980 |
|
|
486 |
|
|
2,434 |
|
|
24,153 |
|
|
115,600 |
Special Mention |
|
|
2,289 |
|
|
12,328 |
|
|
15,458 |
|
|
4,001 |
|
|
2,183 |
|
|
19,125 |
|
|
64,204 |
|
|
119,588 |
Substandard |
|
|
9,214 |
|
|
2,340 |
|
|
3,423 |
|
|
4,139 |
|
|
472 |
|
|
1,327 |
|
|
29,839 |
|
|
50,754 |
Doubtful |
|
|
— |
|
|
— |
|
|
1,598 |
|
|
— |
|
|
— |
|
|
— |
|
|
27,733 |
|
|
29,331 |
Total Commercial & Industrial |
|
$ |
801,644 |
|
$ |
638,772 |
|
$ |
603,204 |
|
$ |
315,468 |
|
$ |
127,355 |
|
$ |
250,238 |
|
$ |
1,128,014 |
|
$ |
3,864,695 |
Current period gross write-off |
|
$ |
— |
|
$ |
(42) |
|
$ |
(1,081) |
|
$ |
(145) |
|
$ |
(147) |
|
$ |
(928) |
|
$ |
(1,187) |
|
$ |
(3,530) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multifamily Real Estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
80,345 |
|
$ |
34,060 |
|
$ |
259,493 |
|
$ |
229,950 |
|
$ |
205,699 |
|
$ |
302,186 |
|
$ |
35,706 |
|
$ |
1,147,439 |
Watch |
|
|
— |
|
|
— |
|
|
1,719 |
|
|
73,780 |
|
|
129 |
|
|
— |
|
|
— |
|
|
75,628 |
Special Mention |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
250 |
|
|
1,185 |
|
|
— |
|
|
1,435 |
Substandard |
|
|
— |
|
|
14,210 |
|
|
— |
|
|
— |
|
|
— |
|
|
1,497 |
|
|
— |
|
|
15,707 |
Total Multifamily Real Estate |
|
$ |
80,345 |
|
$ |
48,270 |
|
$ |
261,212 |
|
$ |
303,730 |
|
$ |
206,078 |
|
$ |
304,868 |
|
$ |
35,706 |
|
$ |
1,240,209 |
Current period gross write-off |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential 1-4 Family – Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
49,068 |
|
$ |
66,307 |
|
$ |
115,526 |
|
$ |
108,751 |
|
$ |
79,090 |
|
$ |
250,273 |
|
$ |
9,617 |
|
$ |
678,632 |
Watch |
|
|
274 |
|
|
504 |
|
|
1,277 |
|
|
737 |
|
|
730 |
|
|
6,571 |
|
|
152 |
|
|
10,245 |
Special Mention |
|
|
— |
|
|
— |
|
|
23,435 |
|
|
215 |
|
|
331 |
|
|
1,500 |
|
|
— |
|
|
25,481 |
Substandard |
|
|
517 |
|
|
— |
|
|
— |
|
|
229 |
|
|
588 |
|
|
3,480 |
|
|
253 |
|
|
5,067 |
Total Residential 1-4 Family – Commercial |
|
$ |
49,859 |
|
$ |
66,811 |
|
$ |
140,238 |
|
$ |
109,932 |
|
$ |
80,739 |
|
$ |
261,824 |
|
$ |
10,022 |
|
$ |
719,425 |
Current period gross write-off |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(18) |
|
$ |
— |
|
$ |
— |
|
$ |
(18) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
233,480 |
|
$ |
196,703 |
|
$ |
169,440 |
|
$ |
157,815 |
|
$ |
82,990 |
|
$ |
161,984 |
|
$ |
106,368 |
|
$ |
1,108,780 |
Watch |
|
|
— |
|
|
1,926 |
|
|
6,170 |
|
|
1,525 |
|
|
5,293 |
|
|
4,419 |
|
|
— |
|
|
19,333 |
Special Mention |
|
|
— |
|
|
84 |
|
|
1,059 |
|
|
3,163 |
|
|
— |
|
|
582 |
|
|
— |
|
|
4,888 |
Substandard |
|
|
— |
|
|
1,060 |
|
|
3,272 |
|
|
— |
|
|
30 |
|
|
2 |
|
|
99 |
|
|
4,463 |
Total Other Commercial |
|
$ |
233,480 |
|
$ |
199,773 |
|
$ |
179,941 |
|
$ |
162,503 |
|
$ |
88,313 |
|
$ |
166,987 |
|
$ |
106,467 |
|
$ |
1,137,464 |
Current period gross write-off |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(3,492) |
|
$ |
— |
|
$ |
(3,492) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
2,003,776 |
|
$ |
2,279,081 |
|
$ |
2,436,421 |
|
$ |
2,015,340 |
|
$ |
1,135,904 |
|
$ |
3,841,771 |
|
$ |
1,322,073 |
|
$ |
15,034,366 |
Watch |
|
|
7,190 |
|
|
57,189 |
|
|
84,888 |
|
|
97,115 |
|
|
9,145 |
|
|
119,347 |
|
|
37,397 |
|
|
412,271 |
Special Mention |
|
|
4,565 |
|
|
20,842 |
|
|
61,500 |
|
|
10,590 |
|
|
13,749 |
|
|
82,373 |
|
|
66,593 |
|
|
260,212 |
Substandard |
|
|
34,615 |
|
|
31,487 |
|
|
30,853 |
|
|
6,595 |
|
|
41,786 |
|
|
86,692 |
|
|
30,402 |
|
|
262,430 |
Doubtful |
|
|
— |
|
|
— |
|
|
1,598 |
|
|
— |
|
|
— |
|
|
— |
|
|
27,733 |
|
|
29,331 |
Total Commercial |
|
$ |
2,050,146 |
|
$ |
2,388,599 |
|
$ |
2,615,260 |
|
$ |
2,129,640 |
|
$ |
1,200,584 |
|
$ |
4,130,183 |
|
$ |
1,484,198 |
|
$ |
15,998,610 |
Total current period gross write-off |
|
$ |
— |
|
$ |
(42) |
|
$ |
(2,190) |
|
$ |
(145) |
|
$ |
(3,551) |
|
$ |
(4,774) |
|
$ |
(1,187) |
|
$ |
(11,889) |
Consumer Loans
For Consumer loans, the Company evaluates credit quality based on the delinquency status of the loan. The following table details the amortized cost and gross write-offs of the classes of loans within the Consumer segment based on their delinquency status and year of origination as of September 30, (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
|
|
Term Loans Amortized Cost Basis by Origination Year |
|
Revolving |
|
|
|
|
|
2025 |
|
2024 |
|
2023 |
|
2022 |
|
2021 |
|
Prior |
|
Loans |
|
Total |
Residential 1-4 Family – Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
$ |
238,888 |
|
$ |
198,343 |
|
$ |
218,225 |
|
$ |
702,006 |
|
$ |
610,074 |
|
$ |
784,818 |
|
$ |
15,546 |
|
$ |
2,767,900 |
30-59 Days Past Due |
|
|
— |
|
|
36 |
|
|
226 |
|
|
241 |
|
|
9 |
|
|
1,255 |
|
|
104 |
|
|
1,871 |
60-89 Days Past Due |
|
|
— |
|
|
479 |
|
|
45 |
|
|
165 |
|
|
226 |
|
|
2,405 |
|
|
— |
|
|
3,320 |
90+ Days Past Due |
|
|
281 |
|
|
— |
|
|
183 |
|
|
356 |
|
|
— |
|
|
2,135 |
|
|
— |
|
|
2,955 |
Nonaccrual |
|
|
— |
|
|
125 |
|
|
1,286 |
|
|
5,709 |
|
|
3,131 |
|
|
13,372 |
|
|
— |
|
|
23,623 |
Total Residential 1-4 Family – Consumer |
|
$ |
239,169 |
|
$ |
198,983 |
|
$ |
219,965 |
|
$ |
708,477 |
|
$ |
613,440 |
|
$ |
803,985 |
|
$ |
15,650 |
|
$ |
2,799,669 |
Current period gross write-off |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(105) |
|
$ |
— |
|
$ |
(53) |
|
$ |
— |
|
$ |
(158) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential 1-4 Family – Revolving |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
$ |
18,565 |
|
$ |
13,785 |
|
$ |
25,679 |
|
$ |
40,535 |
|
$ |
9,963 |
|
$ |
9,110 |
|
$ |
1,056,165 |
|
$ |
1,173,802 |
30-59 Days Past Due |
|
|
— |
|
|
33 |
|
|
63 |
|
|
318 |
|
|
— |
|
|
18 |
|
|
2,642 |
|
|
3,074 |
60-89 Days Past Due |
|
|
60 |
|
|
— |
|
|
— |
|
|
128 |
|
|
— |
|
|
35 |
|
|
1,939 |
|
|
2,162 |
90+ Days Past Due |
|
|
— |
|
|
— |
|
|
274 |
|
|
183 |
|
|
56 |
|
|
64 |
|
|
1,239 |
|
|
1,816 |
Nonaccrual |
|
|
— |
|
|
— |
|
|
300 |
|
|
147 |
|
|
35 |
|
|
820 |
|
|
4,142 |
|
|
5,444 |
Total Residential 1-4 Family – Revolving |
|
$ |
18,625 |
|
$ |
13,818 |
|
$ |
26,316 |
|
$ |
41,311 |
|
$ |
10,054 |
|
$ |
10,047 |
|
$ |
1,066,127 |
|
$ |
1,186,298 |
Current period gross write-off |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(198) |
|
$ |
(198) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Auto |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
$ |
1,542 |
|
$ |
1,937 |
|
$ |
40,693 |
|
$ |
100,695 |
|
$ |
43,548 |
|
$ |
18,970 |
|
$ |
— |
|
$ |
207,385 |
30-59 Days Past Due |
|
|
— |
|
|
— |
|
|
482 |
|
|
1,488 |
|
|
517 |
|
|
257 |
|
|
— |
|
|
2,744 |
60-89 Days Past Due |
|
|
— |
|
|
— |
|
|
167 |
|
|
312 |
|
|
229 |
|
|
159 |
|
|
— |
|
|
867 |
90+ Days Past Due |
|
|
66 |
|
|
— |
|
|
98 |
|
|
113 |
|
|
69 |
|
|
2 |
|
|
— |
|
|
348 |
Nonaccrual |
|
|
— |
|
|
— |
|
|
86 |
|
|
285 |
|
|
108 |
|
|
77 |
|
|
— |
|
|
556 |
Total Auto |
|
$ |
1,608 |
|
$ |
1,937 |
|
$ |
41,526 |
|
$ |
102,893 |
|
$ |
44,471 |
|
$ |
19,465 |
|
$ |
— |
|
$ |
211,900 |
Current period gross write-off |
|
$ |
(80) |
|
$ |
— |
|
$ |
(193) |
|
$ |
(809) |
|
$ |
(182) |
|
$ |
(134) |
|
$ |
— |
|
$ |
(1,398) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
$ |
11,734 |
|
$ |
9,510 |
|
$ |
5,511 |
|
$ |
7,166 |
|
$ |
5,307 |
|
$ |
27,914 |
|
$ |
53,622 |
|
$ |
120,764 |
30-59 Days Past Due |
|
|
4 |
|
|
21 |
|
|
29 |
|
|
13 |
|
|
12 |
|
|
133 |
|
|
117 |
|
|
329 |
60-89 Days Past Due |
|
|
— |
|
|
31 |
|
|
30 |
|
|
13 |
|
|
7 |
|
|
46 |
|
|
52 |
|
|
179 |
90+ Days Past Due |
|
|
3 |
|
|
17 |
|
|
16 |
|
|
48 |
|
|
— |
|
|
227 |
|
|
— |
|
|
311 |
Nonaccrual |
|
|
— |
|
|
3 |
|
|
20 |
|
|
10 |
|
|
4 |
|
|
— |
|
|
— |
|
|
37 |
Total Consumer |
|
$ |
11,741 |
|
$ |
9,582 |
|
$ |
5,606 |
|
$ |
7,250 |
|
$ |
5,330 |
|
$ |
28,320 |
|
$ |
53,791 |
|
$ |
121,620 |
Current period gross write-off |
|
$ |
(7) |
|
$ |
(176) |
|
$ |
(205) |
|
$ |
(29) |
|
$ |
(31) |
|
$ |
(636) |
|
$ |
(109) |
|
$ |
(1,193) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
$ |
270,729 |
|
$ |
223,575 |
|
$ |
290,108 |
|
$ |
850,402 |
|
$ |
668,892 |
|
$ |
840,812 |
|
$ |
1,125,333 |
|
$ |
4,269,851 |
30-59 Days Past Due |
|
|
4 |
|
|
90 |
|
|
800 |
|
|
2,060 |
|
|
538 |
|
|
1,663 |
|
|
2,863 |
|
|
8,018 |
60-89 Days Past Due |
|
|
60 |
|
|
510 |
|
|
242 |
|
|
618 |
|
|
462 |
|
|
2,645 |
|
|
1,991 |
|
|
6,528 |
90+ Days Past Due |
|
|
350 |
|
|
17 |
|
|
571 |
|
|
700 |
|
|
125 |
|
|
2,428 |
|
|
1,239 |
|
|
5,430 |
Nonaccrual |
|
|
— |
|
|
128 |
|
|
1,692 |
|
|
6,151 |
|
|
3,278 |
|
|
14,269 |
|
|
4,142 |
|
|
29,660 |
Total Consumer |
|
$ |
271,143 |
|
$ |
224,320 |
|
$ |
293,413 |
|
$ |
859,931 |
|
$ |
673,295 |
|
$ |
861,817 |
|
$ |
1,135,568 |
|
$ |
4,319,487 |
Total current period gross write-off |
|
$ |
(87) |
|
$ |
(176) |
|
$ |
(398) |
|
$ |
(943) |
|
$ |
(213) |
|
$ |
(823) |
|
$ |
(307) |
|
$ |
(2,947) |
The following table details the amortized cost and gross write-offs of the classes of loans within the Consumer segment based on their delinquency status and year of origination as of December 31, (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
|
Term Loans Amortized Cost Basis by Origination Year |
|
Revolving |
|
|
|
|
|
2024 |
|
2023 |
|
2022 |
|
2021 |
|
2020 |
|
Prior |
|
Loans |
|
Total |
Residential 1-4 Family – Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
$ |
137,808 |
|
$ |
171,237 |
|
$ |
287,376 |
|
$ |
277,653 |
|
$ |
151,177 |
|
$ |
241,203 |
|
$ |
13 |
|
$ |
1,266,467 |
30-59 Days Past Due |
|
|
233 |
|
|
405 |
|
|
14 |
|
|
470 |
|
|
954 |
|
|
3,852 |
|
|
— |
|
|
5,928 |
60-89 Days Past Due |
|
|
— |
|
|
28 |
|
|
216 |
|
|
5,546 |
|
|
— |
|
|
1,600 |
|
|
— |
|
|
7,390 |
90+ Days Past Due |
|
|
— |
|
|
150 |
|
|
94 |
|
|
— |
|
|
— |
|
|
1,063 |
|
|
— |
|
|
1,307 |
Nonaccrual |
|
|
— |
|
|
505 |
|
|
2,953 |
|
|
1,109 |
|
|
207 |
|
|
7,951 |
|
|
— |
|
|
12,725 |
Total Residential 1-4 Family – Consumer |
|
$ |
138,041 |
|
$ |
172,325 |
|
$ |
290,653 |
|
$ |
284,778 |
|
$ |
152,338 |
|
$ |
255,669 |
|
$ |
13 |
|
$ |
1,293,817 |
Current period gross write-off |
|
$ |
— |
|
$ |
(76) |
|
$ |
(3) |
|
$ |
— |
|
$ |
— |
|
$ |
(142) |
|
$ |
— |
|
$ |
(221) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential 1-4 Family – Revolving |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
$ |
17,522 |
|
$ |
33,934 |
|
$ |
45,558 |
|
$ |
10,407 |
|
$ |
3,578 |
|
$ |
1,731 |
|
$ |
634,744 |
|
$ |
747,474 |
30-59 Days Past Due |
|
|
— |
|
|
11 |
|
|
81 |
|
|
— |
|
|
30 |
|
|
— |
|
|
1,702 |
|
|
1,824 |
60-89 Days Past Due |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2,110 |
|
|
2,110 |
90+ Days Past Due |
|
|
— |
|
|
178 |
|
|
130 |
|
|
— |
|
|
— |
|
|
— |
|
|
1,402 |
|
|
1,710 |
Nonaccrual |
|
|
— |
|
|
139 |
|
|
112 |
|
|
— |
|
|
45 |
|
|
— |
|
|
3,530 |
|
|
3,826 |
Total Residential 1-4 Family – Revolving |
|
$ |
17,522 |
|
$ |
34,262 |
|
$ |
45,881 |
|
$ |
10,407 |
|
$ |
3,653 |
|
$ |
1,731 |
|
$ |
643,488 |
|
$ |
756,944 |
Current period gross write-off |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(28) |
|
$ |
— |
|
$ |
— |
|
$ |
(189) |
|
$ |
(217) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Auto |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
$ |
2,251 |
|
$ |
55,170 |
|
$ |
145,517 |
|
$ |
68,282 |
|
$ |
28,923 |
|
$ |
11,211 |
|
$ |
— |
|
$ |
311,354 |
30-59 Days Past Due |
|
|
— |
|
|
507 |
|
|
1,571 |
|
|
1,053 |
|
|
218 |
|
|
266 |
|
|
— |
|
|
3,615 |
60-89 Days Past Due |
|
|
— |
|
|
97 |
|
|
233 |
|
|
87 |
|
|
— |
|
|
39 |
|
|
— |
|
|
456 |
90+ Days Past Due |
|
|
— |
|
|
10 |
|
|
149 |
|
|
74 |
|
|
31 |
|
|
20 |
|
|
— |
|
|
284 |
Nonaccrual |
|
|
— |
|
|
94 |
|
|
305 |
|
|
113 |
|
|
118 |
|
|
29 |
|
|
— |
|
|
659 |
Total Auto |
|
$ |
2,251 |
|
$ |
55,878 |
|
$ |
147,775 |
|
$ |
69,609 |
|
$ |
29,290 |
|
$ |
11,565 |
|
$ |
— |
|
$ |
316,368 |
Current period gross write-off |
|
$ |
— |
|
$ |
(243) |
|
$ |
(835) |
|
$ |
(335) |
|
$ |
(82) |
|
$ |
(75) |
|
$ |
— |
|
$ |
(1,570) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
$ |
13,664 |
|
$ |
7,932 |
|
$ |
12,490 |
|
$ |
6,998 |
|
$ |
5,903 |
|
$ |
27,967 |
|
$ |
28,574 |
|
$ |
103,528 |
30-59 Days Past Due |
|
|
26 |
|
|
73 |
|
|
87 |
|
|
9 |
|
|
10 |
|
|
542 |
|
|
57 |
|
|
804 |
60-89 Days Past Due |
|
|
15 |
|
|
54 |
|
|
56 |
|
|
10 |
|
|
14 |
|
|
333 |
|
|
4 |
|
|
486 |
90+ Days Past Due |
|
|
— |
|
|
4 |
|
|
31 |
|
|
3 |
|
|
4 |
|
|
— |
|
|
2 |
|
|
44 |
Nonaccrual |
|
|
— |
|
|
— |
|
|
13 |
|
|
7 |
|
|
— |
|
|
— |
|
|
— |
|
|
20 |
Total Consumer |
|
$ |
13,705 |
|
$ |
8,063 |
|
$ |
12,677 |
|
$ |
7,027 |
|
$ |
5,931 |
|
$ |
28,842 |
|
$ |
28,637 |
|
$ |
104,882 |
Current period gross write-off |
|
$ |
(6) |
|
$ |
(206) |
|
$ |
(116) |
|
$ |
(31) |
|
$ |
(782) |
|
$ |
(756) |
|
$ |
(162) |
|
$ |
(2,059) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
$ |
171,245 |
|
$ |
268,273 |
|
$ |
490,941 |
|
$ |
363,340 |
|
$ |
189,581 |
|
$ |
282,112 |
|
$ |
663,331 |
|
$ |
2,428,823 |
30-59 Days Past Due |
|
|
259 |
|
|
996 |
|
|
1,753 |
|
|
1,532 |
|
|
1,212 |
|
|
4,660 |
|
|
1,759 |
|
|
12,171 |
60-89 Days Past Due |
|
|
15 |
|
|
179 |
|
|
505 |
|
|
5,643 |
|
|
14 |
|
|
1,972 |
|
|
2,114 |
|
|
10,442 |
90+ Days Past Due |
|
|
— |
|
|
342 |
|
|
404 |
|
|
77 |
|
|
35 |
|
|
1,083 |
|
|
1,404 |
|
|
3,345 |
Nonaccrual |
|
|
— |
|
|
738 |
|
|
3,383 |
|
|
1,229 |
|
|
370 |
|
|
7,980 |
|
|
3,530 |
|
|
17,230 |
Total Consumer |
|
$ |
171,519 |
|
$ |
270,528 |
|
$ |
496,986 |
|
$ |
371,821 |
|
$ |
191,212 |
|
$ |
297,807 |
|
$ |
672,138 |
|
$ |
2,472,011 |
Total current period gross write-off |
|
$ |
(6) |
|
$ |
(525) |
|
$ |
(954) |
|
$ |
(394) |
|
$ |
(864) |
|
$ |
(973) |
|
$ |
(351) |
|
$ |
(4,067) |
As of September 30, 2025 and December 31, 2024, the Company did not have any material revolving loans convert to term.
|