| 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 HFS 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 year ended December 31, 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 Company’s LHFI, net, are stated at their amortized cost, net of the ALLL and include deferred fees and costs, as well as purchase accounting discounts and premiums. The LHFI consisted of the following for the years ended December 31, (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
2024 |
Construction and Land Development |
|
|
$ |
1,666,381 |
|
$ |
1,731,108 |
CRE – Owner Occupied |
|
|
|
4,305,796 |
|
|
2,370,119 |
CRE – Non-Owner Occupied |
|
|
|
7,178,515 |
|
|
4,935,590 |
Multifamily Real Estate |
|
|
|
2,418,250 |
|
|
1,240,209 |
Commercial & Industrial |
|
|
|
5,229,728 |
|
|
3,864,695 |
Residential 1-4 Family – Commercial |
|
|
|
1,100,157 |
|
|
719,425 |
Residential 1-4 Family – Consumer |
|
|
|
2,825,259 |
|
|
1,293,817 |
Residential 1-4 Family – Revolving |
|
|
|
1,248,284 |
|
|
756,944 |
Auto |
|
|
|
183,720 |
|
|
316,368 |
Consumer |
|
|
|
121,488 |
|
|
104,882 |
Other Commercial |
|
|
|
1,518,589 |
|
|
1,137,464 |
Total LHFI, net of unearned income (1) |
|
|
|
27,796,167 |
|
|
18,470,621 |
Allowance for loan and lease losses |
|
|
|
(295,108) |
|
|
(178,644) |
Total LHFI, net |
|
|
$ |
27,501,059 |
|
$ |
18,291,977 |
(1) Total loans included unamortized premiums and discounts, and unamortized deferred fees and costs totaling $803.2 million and $220.6 million as of December 31, 2025 and 2024, respectively.
Accrued interest receivable on LHFI totaled $106.5 million and $73.7 million at December 31, 2025 and 2024, respectively. Accrued interest receivable write-offs were not material to the Company’s consolidated financial statements for the years ended December 31, 2025, 2024, and 2023.
The following table shows the aging of the Company’s LHFI portfolio, by class, as of December 31, 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 |
|
$ |
1,659,048 |
|
$ |
1,455 |
|
$ |
94 |
|
$ |
1,481 |
|
$ |
4,303 |
|
$ |
1,666,381 |
|
CRE – Owner Occupied |
|
|
4,284,562 |
|
|
7,241 |
|
|
3,171 |
|
|
4,788 |
|
|
6,034 |
|
|
4,305,796 |
|
CRE – Non-Owner Occupied |
|
|
7,154,178 |
|
|
9,482 |
|
|
1,455 |
|
|
2,099 |
|
|
11,301 |
|
|
7,178,515 |
|
Multifamily Real Estate |
|
|
2,366,442 |
|
|
52 |
|
|
247 |
|
|
6,140 |
|
|
45,369 |
|
|
2,418,250 |
|
Commercial & Industrial |
|
|
5,197,839 |
|
|
8,935 |
|
|
3,552 |
|
|
9,114 |
|
|
10,288 |
|
|
5,229,728 |
|
Residential 1-4 Family – Commercial |
|
|
1,087,181 |
|
|
2,634 |
|
|
1,306 |
|
|
2,379 |
|
|
6,657 |
|
|
1,100,157 |
|
Residential 1-4 Family – Consumer |
|
|
2,772,790 |
|
|
17,911 |
|
|
5,628 |
|
|
5,633 |
|
|
23,297 |
|
|
2,825,259 |
|
Residential 1-4 Family – Revolving |
|
|
1,233,032 |
|
|
3,994 |
|
|
2,157 |
|
|
3,458 |
|
|
5,643 |
|
|
1,248,284 |
|
Auto |
|
|
178,615 |
|
|
3,332 |
|
|
797 |
|
|
404 |
|
|
572 |
|
|
183,720 |
|
Consumer |
|
|
120,806 |
|
|
444 |
|
|
171 |
|
|
55 |
|
|
12 |
|
|
121,488 |
|
Other Commercial |
|
|
1,513,629 |
|
|
3,242 |
|
|
143 |
|
|
— |
|
|
1,575 |
|
|
1,518,589 |
|
Total LHFI, net of unearned income |
|
$ |
27,568,122 |
|
$ |
58,722 |
|
$ |
18,721 |
|
$ |
35,551 |
|
$ |
115,051 |
|
$ |
27,796,167 |
|
% of total loans |
|
|
99.18 |
% |
|
0.21 |
% |
|
0.07 |
% |
|
0.13 |
% |
|
0.41 |
% |
|
100.00 |
% |
The following table shows the aging of the Company’s LHFI portfolio, by class, as of 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 unearned income |
|
$ |
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, as of December 31, (dollars in thousands):
|
|
|
|
|
|
|
|
|
2025 |
|
2024 |
Construction and Land Development |
|
$ |
2,700 |
|
$ |
— |
Commercial Real Estate - Owner Occupied |
|
|
1,430 |
|
|
— |
Commercial Real Estate - Non-Owner Occupied |
|
|
10,097 |
|
|
— |
Multifamily Real Estate |
|
|
45,369 |
|
|
— |
Commercial & Industrial |
|
|
2,751 |
|
|
2,510 |
Residential 1-4 Family - Commercial |
|
|
4,597 |
|
|
— |
Residential 1-4 Family - Consumer |
|
|
1,122 |
|
|
— |
Total LHFI, net of unearned income |
|
$ |
68,066 |
|
$ |
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. There was no interest income recognized on nonaccrual loans during the years ended December 31, 2025, 2024, and 2023.
TLMs
The following tables present the amortized cost basis of TLMs for the years ended December 31, (dollars in thousands):
|
|
|
|
|
|
|
|
|
2025 |
|
|
|
Amortized Cost |
|
% of Total Class of Financing Receivable |
|
Other-Than-Insignificant Payment Delay |
|
|
|
|
|
|
Commercial and Industrial |
|
$ |
1,536 |
|
0.03 |
% |
CRE – Non-Owner Occupied |
|
|
3,797 |
|
0.05 |
% |
Multifamily Real Estate |
|
|
729 |
|
0.03 |
% |
Total Other-Than-Insignificant Payment Delay |
|
$ |
6,062 |
|
|
|
|
|
|
|
|
|
|
Term Extension |
|
|
|
|
|
|
Commercial and Industrial |
|
$ |
107 |
|
NM |
% |
CRE – Owner Occupied |
|
|
14,431 |
|
0.34 |
% |
Multifamily Real Estate |
|
|
15,461 |
|
0.64 |
% |
Residential 1-4 Family – Commercial |
|
|
4,576 |
|
0.42 |
% |
Residential 1-4 Family – Consumer |
|
|
1,481 |
|
0.05 |
% |
Total Term Extension |
|
$ |
36,056 |
|
|
|
|
|
|
|
|
|
|
Combination - Other-Than-Insignificant Payment Delay and Term Extension |
|
|
|
|
|
|
Commercial and Industrial |
|
$ |
444 |
|
0.01 |
% |
Total Combination - Other-Than-Insignificant Payment Delay and Term Extension |
|
$ |
444 |
|
|
|
|
|
|
|
|
|
|
Combination - Term Extension and Interest Rate Reduction |
|
|
|
|
|
|
Residential 1-4 Family - Consumer |
|
$ |
2,862 |
|
0.10 |
% |
Total Combination - Term Extension and Interest Rate Reduction |
|
$ |
2,862 |
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
45,424 |
|
|
|
NM = Not Meaningful
|
|
|
|
|
|
|
|
|
2024 |
|
|
|
Amortized Cost |
|
% of Total Class of Financing Receivable |
|
Term Extension |
|
|
|
|
|
|
Construction and Land Development |
|
$ |
49 |
|
NM |
% |
Commercial and Industrial |
|
|
1,434 |
|
0.04 |
% |
CRE – Non-Owner Occupied |
|
|
11,383 |
|
0.23 |
% |
CRE – Owner Occupied |
|
|
842 |
|
0.04 |
% |
Residential 1-4 Family – Consumer |
|
|
509 |
|
0.04 |
% |
Total Term Extension |
|
$ |
14,217 |
|
|
|
|
|
|
|
|
|
|
Combination - Other-Than-Insignificant Payment Delay and Term Extension |
|
|
|
|
|
|
CRE – Non-Owner Occupied |
|
$ |
16,937 |
|
0.34 |
% |
Other Commercial |
|
|
3,273 |
|
0.29 |
% |
Total Combination - Other-Than-Insignificant Payment Delay and Term Extension |
|
$ |
20,210 |
|
|
|
|
|
|
|
|
|
|
Combination - Term Extension and Interest Rate Reduction |
|
|
|
|
|
|
Residential 1-4 Family – Consumer |
|
$ |
724 |
|
0.06 |
% |
Residential 1-4 Family – Revolving |
|
|
26 |
|
NM |
% |
Total Combination - Term Extension and Interest Rate Reduction |
|
$ |
750 |
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
35,177 |
|
|
|
NM = Not Meaningful
|
|
|
|
|
|
|
|
|
2023 |
|
|
|
Amortized Cost |
|
% of Total Class of Financing Receivable |
|
Principal Forgiveness |
|
|
|
|
|
|
CRE – Non-Owner Occupied |
|
$ |
4,835 |
|
0.12 |
% |
Total Principal Forgiveness |
|
$ |
4,835 |
|
|
|
|
|
|
|
|
|
|
Term Extension |
|
|
|
|
|
|
Construction and Land Development |
|
$ |
18,999 |
|
1.71 |
% |
Commercial and Industrial |
|
|
3,542 |
|
0.10 |
% |
CRE – Owner Occupied |
|
|
766 |
|
0.04 |
% |
Residential 1-4 Family – Consumer |
|
|
1,137 |
|
0.11 |
% |
Total Term Extension |
|
$ |
24,444 |
|
|
|
|
|
|
|
|
|
|
Combination - Other-Than-Insignificant Payment Delay and Term Extension |
|
|
|
|
|
|
CRE – Non-Owner Occupied |
|
$ |
20,766 |
|
0.50 |
% |
Total Combination - Other-Than-Insignificant Payment Delay and Term Extension |
|
$ |
20,766 |
|
|
|
|
|
|
|
|
|
|
Combination - Term Extension and Interest Rate Reduction |
|
|
|
|
|
|
Residential 1-4 Family – Consumer |
|
$ |
1,177 |
|
0.11 |
% |
Residential 1-4 Family – Revolving |
|
|
15 |
|
NM |
% |
Total Combination - Term Extension and Interest Rate Reduction |
|
$ |
1,192 |
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
51,237 |
|
|
|
NM = Not Meaningful
The following tables describe the financial effects of TLMs on a weighted average basis for TLMs within that loan type for the years ended December 31,:
|
|
|
|
|
|
|
|
|
2025 |
|
|
|
|
|
|
|
|
|
Term Extension |
Loan Type |
|
Financial Effect |
CRE – Owner Occupied |
|
Added a weighted-average 1.8 years to the life of loans. |
Multifamily Real Estate |
|
Added a weighted-average 0.5 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%. |
|
|
|
|
|
|
|
|
|
2024 |
|
|
|
|
|
|
|
|
|
Term Extension |
Loan Type |
|
Financial Effect |
Commercial and Industrial |
|
Added a weighted-average 0.8 years to the life of loans. |
CRE – Owner Occupied |
|
Added a weighted-average 3.0 years to the life of loans. |
CRE – Non-Owner Occupied |
|
Added a weighted-average 2.3 years to the life of loans. |
|
|
|
|
|
|
|
|
|
Combination - Other-Than-Insignificant Payment Delay and Term Extension |
Loan Type |
|
Financial Effect |
CRE – Non-Owner Occupied |
|
Added a weighted-average 1.6 years to the life of loans. |
Other Commercial |
|
Added a weighted-average 1.5 years to the life of loans. |
|
|
|
|
|
|
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
Principal Forgiveness |
Loan Type |
|
Financial Effect |
CRE – Non-Owner Occupied |
|
Reduced the amortized cost basis of loans by $3.5 million. |
|
|
|
|
|
|
|
|
|
Term Extension |
Loan Type |
|
Financial Effect |
Construction and Land Development |
|
Added a weighted-average 1.3 years to the life of loans. |
Commercial and Industrial |
|
Added a weighted-average 0.2 years to the life of loans. |
CRE – Owner Occupied |
|
Added a weighted-average 0.5 years to the life of loans. |
Residential 1-4 Family – Consumer |
|
Added a weighted-average 10.8 years to the life of loans. |
|
|
|
|
|
|
|
|
|
Combination - Other-Than-Insignificant Payment Delay and Term Extension |
Loan Type |
|
Financial Effect |
CRE – Non-Owner Occupied |
|
Added a weighted-average 1.0 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 20.3 years to the life of loans and reduced the weighted average contractual interest rate from 8.2% to 7.5%. |
Residential 1-4 Family – Revolving |
|
Added a weighted-average 19.1 years to the life of loans and reduced the weighted average contractual interest rate from 10.5% to 7.3%. |
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 years ended December 31, 2025, 2024, and 2023, 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 years ended December 31, 2025, 2024, and 2023, the Company did not have any material loans that have been modified and designated as TLMs that were past due.
As of December 31, 2025 and 2024, there were no material unfunded commitments on loans modified and designated as TLMs.
Allowance for Loan and Lease Losses
The following tables show the ALLL activity by loan segment for the years ended December 31, (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
2024 |
|
|
Commercial |
|
Consumer |
|
Total |
|
Commercial |
|
Consumer |
|
Total |
Balance at beginning of period |
|
$ |
148,887 |
|
$ |
29,757 |
|
$ |
178,644 |
|
$ |
105,896 |
|
$ |
26,286 |
|
$ |
132,182 |
Initial allowance - PCD loans (1) (2) |
|
|
21,255 |
|
|
7,010 |
|
|
28,265 |
|
|
2,609 |
|
|
1,287 |
|
|
3,896 |
Loans charged-off (2) |
|
|
(45,999) |
|
|
(3,865) |
|
|
(49,864) |
|
|
(11,889) |
|
|
(4,067) |
|
|
(15,956) |
Recoveries credited to allowance |
|
|
5,581 |
|
|
1,830 |
|
|
7,411 |
|
|
5,283 |
|
|
1,911 |
|
|
7,194 |
Initial provision - non-PCD loans (1) |
|
|
64,740 |
|
|
24,798 |
|
|
89,538 |
|
|
11,213 |
|
|
2,016 |
|
|
13,229 |
Provision charged to operations |
|
|
38,349 |
|
|
2,765 |
|
|
41,114 |
|
|
35,775 |
|
|
2,324 |
|
|
38,099 |
Balance at end of period |
|
$ |
232,813 |
|
$ |
62,295 |
|
$ |
295,108 |
|
$ |
148,887 |
|
$ |
29,757 |
|
$ |
178,644 |
(1) For the years ended December 31, 2025 and 2024, the initial allowance on PCD loans and the initial provision on non-PCD loans related to the acquisitions of Sandy Spring and American National, respectively.
(2) In accordance with GAAP, amounts for the year ended December 31, 2025 exclude $61.8 million of net charge-offs related to certain PCD loans that met the Company’s charge-off policy at the time of the acquisition, including measurement period adjustments recorded in the third and fourth quarters of 2025 associated with the Sandy Spring acquisition, based on subsequent additional information and evidence obtained by the Company relating to events or circumstances that were existing at the acquisition date.
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) |
|
$ |
1,716,523 |
Initial ACL at acquisition (2) |
|
|
(28,265) |
Non-credit discount at acquisition |
|
|
(162,140) |
Purchase Price |
|
$ |
1,526,118 |
|
|
|
|
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 measurement period adjustments totaling $27.3 million during the third and fourth quarters 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, reducing the book value of loans acquired at acquisition.
(2) In accordance with GAAP, the amounts exclude $61.8 million of net charge-offs related to certain PCD loans that met the Company’s charge-off policy at the time of the acquisition.
The following table presents additional information related to the acquired American National loan portfolio at the acquisition date, including the initial ACL at acquisition on the PCD loans (dollars in thousands):
|
|
|
|
PCD Loans |
|
|
April 1, 2024 |
Book value of acquired loans at acquisition |
|
$ |
89,418 |
Initial ACL at acquisition |
|
|
(3,896) |
Non-credit discount at acquisition |
|
|
(10,466) |
Purchase Price |
|
$ |
75,056 |
|
|
|
|
Non-PCD Loans: |
|
|
|
Fair Value |
|
$ |
2,073,037 |
Gross contractual amounts receivable |
|
|
2,503,707 |
Estimate of contractual cash flows not expected to be collected |
|
|
10,887 |
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.
See Note 1 “Summary of Significant Accounting Policies” in this 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. The risk levels, as described below, do not necessarily follow the regulatory definitions of risk levels with the same name. A general description of the characteristics of the risk levels follows:
Pass is determined by the following criteria:
|
● |
Risk rated 0 loans have little or no risk and are with General Obligation Municipal Borrowers; |
|
● |
Risk rated 1 loans have little or no risk and are generally secured by cash or cash equivalents; |
|
● |
Risk rated 2 loans have minimal risk to well qualified borrowers and no significant questions as to safety; |
|
● |
Risk rated 3 loans are satisfactory loans with strong borrowers and secondary sources of repayment; |
|
● |
Risk rated 4 loans are satisfactory loans with borrowers not as strong as risk rated 3 loans and may exhibit a greater degree of financial risk based on the type of business supporting the loan. |
Watch is determined by the following criteria:
|
● |
Risk rated 5 loans are pass loans that warrant more than the normal level of supervision and have the possibility of an event occurring that may weaken the borrower’s ability to repay; |
Special Mention is determined by the following criteria:
|
● |
Risk rated 6 loans have increasing potential weaknesses beyond those at which the loan originally was granted and if not addressed could lead to inadequately protecting the Company’s credit position. |
Substandard is determined by the following criteria:
|
● |
Risk rated 7 loans are substandard loans and are inadequately protected by the current sound worth or paying capacity of the obligor or the collateral pledged; these have well defined weaknesses that jeopardize the liquidation of the debt with the distinct possibility the Company will sustain some loss if the deficiencies are not corrected. |
Doubtful is determined by the following criteria:
|
● |
Risk rated 8 loans are doubtful of collection and the possibility of loss is high but pending specific borrower plans for recovery, its classification as a loss is deferred until its more exact status is determined; |
|
● |
Risk rated 9 loans are loss loans which are considered uncollectable and of such little value that their continuance as bankable assets is not warranted. |
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):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
|
|
Term Loans Amortized Cost Basis by Origination Year |
|
Revolving |
|
|
|
|
|
2025 |
|
2024 |
|
2023 |
|
2022 |
|
2021 |
|
Prior |
|
Loans |
|
Total |
Construction and Land Development |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
557,083 |
|
$ |
381,768 |
|
$ |
233,793 |
|
$ |
84,396 |
|
$ |
39,055 |
|
$ |
58,001 |
|
$ |
242,753 |
|
$ |
1,596,849 |
Watch |
|
|
10,712 |
|
|
136 |
|
|
51 |
|
|
671 |
|
|
989 |
|
|
3,260 |
|
|
7,759 |
|
|
23,578 |
Special Mention |
|
|
542 |
|
|
2,092 |
|
|
2,980 |
|
|
463 |
|
|
793 |
|
|
4,845 |
|
|
26,145 |
|
|
37,860 |
Substandard |
|
|
319 |
|
|
547 |
|
|
74 |
|
|
135 |
|
|
2,519 |
|
|
4,500 |
|
|
— |
|
|
8,094 |
Total Construction and Land Development |
|
$ |
568,656 |
|
$ |
384,543 |
|
$ |
236,898 |
|
$ |
85,665 |
|
$ |
43,356 |
|
$ |
70,606 |
|
$ |
276,657 |
|
$ |
1,666,381 |
Current period gross write-off |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(40) |
|
$ |
(3) |
|
$ |
— |
|
$ |
(43) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CRE – Owner Occupied |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
442,571 |
|
$ |
305,006 |
|
$ |
298,355 |
|
$ |
497,750 |
|
$ |
500,885 |
|
$ |
1,823,826 |
|
$ |
53,556 |
|
$ |
3,921,949 |
Watch |
|
|
4,532 |
|
|
14,892 |
|
|
31,258 |
|
|
17,474 |
|
|
12,006 |
|
|
77,890 |
|
|
2,121 |
|
|
160,173 |
Special Mention |
|
|
6,962 |
|
|
7,435 |
|
|
6,210 |
|
|
10,907 |
|
|
6,604 |
|
|
77,134 |
|
|
1,275 |
|
|
116,527 |
Substandard |
|
|
— |
|
|
6,644 |
|
|
16,427 |
|
|
7,014 |
|
|
27,267 |
|
|
49,520 |
|
|
140 |
|
|
107,012 |
Doubtful |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
135 |
|
|
— |
|
|
135 |
Total CRE – Owner Occupied |
|
$ |
454,065 |
|
$ |
333,977 |
|
$ |
352,250 |
|
$ |
533,145 |
|
$ |
546,762 |
|
$ |
2,028,505 |
|
$ |
57,092 |
|
$ |
4,305,796 |
Current period gross write-off |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(147) |
|
$ |
— |
|
$ |
(147) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CRE – Non-Owner Occupied |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
905,007 |
|
$ |
486,703 |
|
$ |
811,972 |
|
$ |
1,060,691 |
|
$ |
741,739 |
|
$ |
2,628,053 |
|
$ |
78,676 |
|
$ |
6,712,841 |
Watch |
|
|
— |
|
|
556 |
|
|
39,149 |
|
|
17,010 |
|
|
23,926 |
|
|
59,738 |
|
|
196 |
|
|
140,575 |
Special Mention |
|
|
505 |
|
|
1,434 |
|
|
2,600 |
|
|
23,267 |
|
|
76,411 |
|
|
68,195 |
|
|
— |
|
|
172,412 |
Substandard |
|
|
— |
|
|
— |
|
|
6,264 |
|
|
38,108 |
|
|
1,138 |
|
|
107,153 |
|
|
24 |
|
|
152,687 |
Total CRE – Non-Owner Occupied |
|
$ |
905,512 |
|
$ |
488,693 |
|
$ |
859,985 |
|
$ |
1,139,076 |
|
$ |
843,214 |
|
$ |
2,863,139 |
|
$ |
78,896 |
|
$ |
7,178,515 |
Current period gross write-off |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(491) |
|
$ |
— |
|
$ |
(491) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial & Industrial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
1,125,728 |
|
$ |
730,095 |
|
$ |
446,849 |
|
$ |
487,440 |
|
$ |
251,752 |
|
$ |
351,402 |
|
$ |
1,344,042 |
|
$ |
4,737,308 |
Watch |
|
|
16,322 |
|
|
35,316 |
|
|
13,751 |
|
|
39,156 |
|
|
8,963 |
|
|
21,615 |
|
|
121,435 |
|
|
256,558 |
Special Mention |
|
|
6,978 |
|
|
16,326 |
|
|
5,861 |
|
|
8,117 |
|
|
4,029 |
|
|
5,914 |
|
|
60,923 |
|
|
108,148 |
Substandard |
|
|
2,785 |
|
|
12,444 |
|
|
33,386 |
|
|
21,588 |
|
|
10,563 |
|
|
5,663 |
|
|
41,285 |
|
|
127,714 |
Total Commercial & Industrial |
|
$ |
1,151,813 |
|
$ |
794,181 |
|
$ |
499,847 |
|
$ |
556,301 |
|
$ |
275,307 |
|
$ |
384,594 |
|
$ |
1,567,685 |
|
$ |
5,229,728 |
Current period gross write-off |
|
$ |
— |
|
$ |
(1,605) |
|
$ |
(69) |
|
$ |
(2,483) |
|
$ |
(10) |
|
$ |
(197) |
|
$ |
(34,451) |
|
$ |
(38,815) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multifamily Real Estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
192,761 |
|
$ |
123,570 |
|
$ |
289,889 |
|
$ |
441,536 |
|
$ |
247,973 |
|
$ |
592,615 |
|
$ |
49,203 |
|
$ |
1,937,547 |
Watch |
|
|
— |
|
|
— |
|
|
14,029 |
|
|
25,464 |
|
|
98,973 |
|
|
3,850 |
|
|
1,317 |
|
|
143,633 |
Special Mention |
|
|
— |
|
|
671 |
|
|
21,572 |
|
|
62,470 |
|
|
— |
|
|
18,533 |
|
|
— |
|
|
103,246 |
Substandard |
|
|
2,372 |
|
|
729 |
|
|
— |
|
|
71,278 |
|
|
37,422 |
|
|
74,668 |
|
|
47,355 |
|
|
233,824 |
Total Multifamily Real Estate |
|
$ |
195,133 |
|
$ |
124,970 |
|
$ |
325,490 |
|
$ |
600,748 |
|
$ |
384,368 |
|
$ |
689,666 |
|
$ |
97,875 |
|
$ |
2,418,250 |
Current period gross write-off |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(47) |
|
$ |
— |
|
$ |
(47) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential 1-4 Family – Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
93,538 |
|
$ |
70,435 |
|
$ |
82,732 |
|
$ |
198,071 |
|
$ |
172,024 |
|
$ |
408,213 |
|
$ |
4,255 |
|
$ |
1,029,268 |
Watch |
|
|
2,975 |
|
|
2,533 |
|
|
1,558 |
|
|
6,193 |
|
|
3,887 |
|
|
11,349 |
|
|
2,431 |
|
|
30,926 |
Special Mention |
|
|
2,404 |
|
|
1,277 |
|
|
— |
|
|
1,209 |
|
|
860 |
|
|
17,009 |
|
|
— |
|
|
22,759 |
Substandard |
|
|
— |
|
|
248 |
|
|
— |
|
|
206 |
|
|
4,843 |
|
|
11,654 |
|
|
253 |
|
|
17,204 |
Total Residential 1-4 Family – Commercial |
|
$ |
98,917 |
|
$ |
74,493 |
|
$ |
84,290 |
|
$ |
205,679 |
|
$ |
181,614 |
|
$ |
448,225 |
|
$ |
6,939 |
|
$ |
1,100,157 |
Current period gross write-off |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(185) |
|
$ |
— |
|
$ |
(185) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
270,356 |
|
$ |
246,933 |
|
$ |
172,163 |
|
$ |
157,255 |
|
$ |
168,474 |
|
$ |
179,392 |
|
$ |
276,970 |
|
$ |
1,471,543 |
Watch |
|
|
— |
|
|
— |
|
|
113 |
|
|
20,631 |
|
|
746 |
|
|
5,873 |
|
|
— |
|
|
27,363 |
Special Mention |
|
|
— |
|
|
— |
|
|
75 |
|
|
— |
|
|
184 |
|
|
6,944 |
|
|
2,688 |
|
|
9,891 |
Substandard |
|
|
556 |
|
|
— |
|
|
4,519 |
|
|
3,040 |
|
|
1,552 |
|
|
35 |
|
|
90 |
|
|
9,792 |
Total Other Commercial |
|
$ |
270,912 |
|
$ |
246,933 |
|
$ |
176,870 |
|
$ |
180,926 |
|
$ |
170,956 |
|
$ |
192,244 |
|
$ |
279,748 |
|
$ |
1,518,589 |
Current period gross write-off |
|
$ |
— |
|
$ |
— |
|
$ |
(140) |
|
$ |
(2,617) |
|
$ |
— |
|
$ |
(3,514) |
|
$ |
— |
|
$ |
(6,271) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
$ |
3,587,044 |
|
$ |
2,344,510 |
|
$ |
2,335,753 |
|
$ |
2,927,139 |
|
$ |
2,121,902 |
|
$ |
6,041,502 |
|
$ |
2,049,455 |
|
$ |
21,407,305 |
Watch |
|
|
34,541 |
|
|
53,433 |
|
|
99,909 |
|
|
126,599 |
|
|
149,490 |
|
|
183,575 |
|
|
135,259 |
|
|
782,806 |
Special Mention |
|
|
17,391 |
|
|
29,235 |
|
|
39,298 |
|
|
106,433 |
|
|
88,881 |
|
|
198,574 |
|
|
91,031 |
|
|
570,843 |
Substandard |
|
|
6,032 |
|
|
20,612 |
|
|
60,670 |
|
|
141,369 |
|
|
85,304 |
|
|
253,193 |
|
|
89,147 |
|
|
656,327 |
Doubtful |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
135 |
|
|
— |
|
|
135 |
Total Commercial |
|
$ |
3,645,008 |
|
$ |
2,447,790 |
|
$ |
2,535,630 |
|
$ |
3,301,540 |
|
$ |
2,445,577 |
|
$ |
6,676,979 |
|
$ |
2,364,892 |
|
$ |
23,417,416 |
Total current period gross write-off |
|
$ |
— |
|
$ |
(1,605) |
|
$ |
(209) |
|
$ |
(5,100) |
|
$ |
(50) |
|
$ |
(4,584) |
|
$ |
(34,451) |
|
$ |
(45,999) |
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 December 31, (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 |
|
$ |
334,528 |
|
$ |
195,624 |
|
$ |
203,804 |
|
$ |
688,989 |
|
$ |
596,987 |
|
$ |
736,230 |
|
$ |
16,628 |
|
$ |
2,772,790 |
30-59 Days Past Due |
|
|
393 |
|
|
77 |
|
|
2,773 |
|
|
2,865 |
|
|
1,600 |
|
|
10,029 |
|
|
174 |
|
|
17,911 |
60-89 Days Past Due |
|
|
525 |
|
|
700 |
|
|
124 |
|
|
2,186 |
|
|
336 |
|
|
1,757 |
|
|
— |
|
|
5,628 |
90+ Days Past Due |
|
|
— |
|
|
452 |
|
|
309 |
|
|
376 |
|
|
937 |
|
|
3,503 |
|
|
56 |
|
|
5,633 |
Nonaccrual |
|
|
— |
|
|
180 |
|
|
1,146 |
|
|
5,233 |
|
|
3,501 |
|
|
12,690 |
|
|
547 |
|
|
23,297 |
Total Residential 1-4 Family – Consumer |
|
$ |
335,446 |
|
$ |
197,033 |
|
$ |
208,156 |
|
$ |
699,649 |
|
$ |
603,361 |
|
$ |
764,209 |
|
$ |
17,405 |
|
$ |
2,825,259 |
Current period gross write-off |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(122) |
|
$ |
— |
|
$ |
(53) |
|
$ |
— |
|
$ |
(175) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential 1-4 Family – Revolving |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
$ |
19,309 |
|
$ |
12,011 |
|
$ |
23,625 |
|
$ |
37,365 |
|
$ |
8,604 |
|
$ |
4,873 |
|
$ |
1,127,245 |
|
$ |
1,233,032 |
30-59 Days Past Due |
|
|
— |
|
|
21 |
|
|
110 |
|
|
104 |
|
|
— |
|
|
43 |
|
|
3,716 |
|
|
3,994 |
60-89 Days Past Due |
|
|
— |
|
|
11 |
|
|
47 |
|
|
123 |
|
|
— |
|
|
— |
|
|
1,976 |
|
|
2,157 |
90+ Days Past Due |
|
|
— |
|
|
— |
|
|
273 |
|
|
— |
|
|
— |
|
|
18 |
|
|
3,167 |
|
|
3,458 |
Nonaccrual |
|
|
59 |
|
|
— |
|
|
129 |
|
|
91 |
|
|
— |
|
|
37 |
|
|
5,327 |
|
|
5,643 |
Total Residential 1-4 Family – Revolving |
|
$ |
19,368 |
|
$ |
12,043 |
|
$ |
24,184 |
|
$ |
37,683 |
|
$ |
8,604 |
|
$ |
4,971 |
|
$ |
1,141,431 |
|
$ |
1,248,284 |
Current period gross write-off |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(375) |
|
$ |
(375) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Auto |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
$ |
1,987 |
|
$ |
1,770 |
|
$ |
36,214 |
|
$ |
88,117 |
|
$ |
36,540 |
|
$ |
13,987 |
|
$ |
— |
|
$ |
178,615 |
30-59 Days Past Due |
|
|
52 |
|
|
— |
|
|
635 |
|
|
1,624 |
|
|
737 |
|
|
284 |
|
|
— |
|
|
3,332 |
60-89 Days Past Due |
|
|
— |
|
|
— |
|
|
113 |
|
|
431 |
|
|
166 |
|
|
87 |
|
|
— |
|
|
797 |
90+ Days Past Due |
|
|
— |
|
|
— |
|
|
57 |
|
|
221 |
|
|
74 |
|
|
52 |
|
|
— |
|
|
404 |
Nonaccrual |
|
|
— |
|
|
— |
|
|
122 |
|
|
257 |
|
|
147 |
|
|
46 |
|
|
— |
|
|
572 |
Total Auto |
|
$ |
2,039 |
|
$ |
1,770 |
|
$ |
37,141 |
|
$ |
90,650 |
|
$ |
37,664 |
|
$ |
14,456 |
|
$ |
— |
|
$ |
183,720 |
Current period gross write-off |
|
$ |
(146) |
|
$ |
— |
|
$ |
(284) |
|
$ |
(886) |
|
$ |
(246) |
|
$ |
(181) |
|
$ |
— |
|
$ |
(1,743) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
$ |
14,244 |
|
$ |
8,307 |
|
$ |
4,691 |
|
$ |
5,986 |
|
$ |
4,856 |
|
$ |
25,883 |
|
$ |
56,839 |
|
$ |
120,806 |
30-59 Days Past Due |
|
|
14 |
|
|
28 |
|
|
11 |
|
|
30 |
|
|
2 |
|
|
309 |
|
|
50 |
|
|
444 |
60-89 Days Past Due |
|
|
30 |
|
|
25 |
|
|
19 |
|
|
21 |
|
|
1 |
|
|
69 |
|
|
6 |
|
|
171 |
90+ Days Past Due |
|
|
4 |
|
|
16 |
|
|
1 |
|
|
16 |
|
|
— |
|
|
8 |
|
|
10 |
|
|
55 |
Nonaccrual |
|
|
— |
|
|
2 |
|
|
— |
|
|
8 |
|
|
2 |
|
|
— |
|
|
— |
|
|
12 |
Total Consumer |
|
$ |
14,292 |
|
$ |
8,378 |
|
$ |
4,722 |
|
$ |
6,061 |
|
$ |
4,861 |
|
$ |
26,269 |
|
$ |
56,905 |
|
$ |
121,488 |
Current period gross write-off |
|
$ |
(10) |
|
$ |
(248) |
|
$ |
(262) |
|
$ |
(50) |
|
$ |
(37) |
|
$ |
(786) |
|
$ |
(179) |
|
$ |
(1,572) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
$ |
370,068 |
|
$ |
217,712 |
|
$ |
268,334 |
|
$ |
820,457 |
|
$ |
646,987 |
|
$ |
780,973 |
|
$ |
1,200,712 |
|
$ |
4,305,243 |
30-59 Days Past Due |
|
|
459 |
|
|
126 |
|
|
3,529 |
|
|
4,623 |
|
|
2,339 |
|
|
10,665 |
|
|
3,940 |
|
|
25,681 |
60-89 Days Past Due |
|
|
555 |
|
|
736 |
|
|
303 |
|
|
2,761 |
|
|
503 |
|
|
1,913 |
|
|
1,982 |
|
|
8,753 |
90+ Days Past Due |
|
|
4 |
|
|
468 |
|
|
640 |
|
|
613 |
|
|
1,011 |
|
|
3,581 |
|
|
3,233 |
|
|
9,550 |
Nonaccrual |
|
|
59 |
|
|
182 |
|
|
1,397 |
|
|
5,589 |
|
|
3,650 |
|
|
12,773 |
|
|
5,874 |
|
|
29,524 |
Total Consumer |
|
$ |
371,145 |
|
$ |
219,224 |
|
$ |
274,203 |
|
$ |
834,043 |
|
$ |
654,490 |
|
$ |
809,905 |
|
$ |
1,215,741 |
|
$ |
4,378,751 |
Total current period gross write-off |
|
$ |
(156) |
|
$ |
(248) |
|
$ |
(546) |
|
$ |
(1,058) |
|
$ |
(283) |
|
$ |
(1,020) |
|
$ |
(554) |
|
$ |
(3,865) |
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 December 31, 2025 and 2024, the Company did not have any material revolving loans convert to term.
|