2 unchanged sentences
The following discussion and analysis should be read in conjunction with the consolidated financial statements and related notes and with the statistical information and financial data appearing in this report as well as the Company's 2024 Annual Report on Form 10-K.
−Removed: Results of operations for the three and nine months ended September 30, 2024 are not necessarily indicative of results to be attained for any other period.
+Added: Results of operations for the three months ended March 31, 2025 are not necessarily indicative of results to be attained for any other period.
Forward-Looking Information
10 unchanged sentences
changes in economic conditions in the Company's market area, changes in policies by regulatory agencies, governmental legislation and regulation, fluctuations in interest rates, changes in liquidity requirements, demand for loans in the Company's market area, changes in accounting and tax principles, estimates made on income taxes, competition with other entities that offer financial services, cybersecurity threats, and such other factors as discussed in Part I Item 1A - "Risk Factors" and Part II Item 7 - "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's 2024 Annual Report on Form 10-K.
−Removed: During the quarter ended September 30, 2024, there were no material changes to the Risk Factors disclosed in the Company's 2023 Annual Report on Form 10-K.
+Added: During the quarter ended March 31, 2025, there were no material changes to the Risk Factors disclosed in the Company's 2024 Annual Report on Form 10-K.
Critical Accounting Estimates and Related Policies
4 unchanged sentences
Selected Financial Data
−Removed: Three Months Ended September 30 Nine Months Ended September 30
−Removed: 2024 2023 2024 2023
+Added: Three Months Ended March 31
Per Share Data
10 unchanged sentences
Equity to loans (1)
−Removed: 19.18 15.90 18.02 16.00
Equity to deposits 13.57 12.05
4 unchanged sentences
Non-interest income to revenue (2)
−Removed: 37.74 36.51 37.30 36.35
Efficiency ratio (3)
−Removed: 56.31 58.15 57.92 57.62
Tier I common risk-based capital ratio 16.86 15.35
24 unchanged sentences
Results of Operations
−Removed: Three Months Ended September 30 Nine Months Ended September 30
−Removed: (Dollars in thousands) 2024 2023 % change 2024 2023 % change
+Added: Three Months Ended March 31 Increase (Decrease)
+Added: (Dollars in thousands) 2025 2024 Amount % change
Net interest income (expense) $ 269,102 $ 248,999 $ 20,103 8.1 %
1 unchanged sentence
Non-interest income 158,949 148,848 10,101 6.8
−Removed: Investment securities gains (losses), net 3,872 4,298 (9.9) 6,846 7,384 (7.3)
+Added: Investment securities gains (losses), net (7,591) (259) (7,332) N.M.
Non-interest expense (238,376) (245,697) (7,321) (3.0)
Income taxes (36,964) (31,652) 5,312 16.8
−Removed: Non-controlling interest income (expense) (2,256) (2,104) 7.2 (6,934) (5,879) 17.9
+Added: Non-controlling interest income (expense) 959 (2,789) (3,748) N.M.
Net income attributable to Commerce Bancshares, Inc.
$ 131,592 $ 112,663 $ 18,929 16.8 %
−Removed: For the quarter ended September 30, 2024, net income attributable to Commerce Bancshares, Inc.
−Removed: (net income) amounted to $138.0 million, an increase of $17.4 million, or 14.4%, compared to the third quarter of the previous year.
+Added: For the quarter ended March 31, 2025, net income attributable to Commerce Bancshares, Inc.
+Added: (net income) amounted to $131.6 million, an increase of $18.9 million, or 16.8%, compared to the first quarter of the previous year.
For the current quarter, the annualized return on average assets was 1.69%, the annualized return on average equity was 15.82%, and the efficiency ratio was 55.61%.
−Removed: Diluted earnings per common share was $1.07 per share in the current quarter, an increase of 16.3% compared to $.92 per share in the third quarter of 2023, and did not change compared to $1.07 per share in the previous quarter.
−Removed: Compared to the third quarter of last year, net interest income increased $13.8 million, or 5.6%, mainly due to an increase in interest income on loans of $13.8 million and a $10.5 million decrease in interest expense on borrowings.
−Removed: This increase in interest income was partly offset by an increase of $7.6 million in interest expense on deposits.
−Removed: The provision for credit losses decreased $2.5 million, or 21.5%, compared to the same quarter in the prior year.
−Removed: Non-interest income increased $16.1 million, or 11.2%, compared to the third quarter of 2023, mainly due to an increase in trust fees, gains on sales of real estate, capital market fees, and deposit account fees.
−Removed: Net gains on investment securities totaled $3.9 million in the current quarter compared to net gains of $4.3 million in the same quarter of last year.
−Removed: Securities gains in the current quarter primarily resulted from net gains of $2.0 million on sales of private equity investments and net gains in fair value of $7.4 million recorded on private equity investments.
−Removed: These gains were partly offset by net losses of $5.4 million on sales of available for sale debt securities.
−Removed: Non-interest expense increased $9.6 million, or 4.2%, over the third quarter of 2023, mainly due to increases in salaries and benefits expense, data processing and software expense, and marketing expense, partly offset by lower deposit insurance expense.
−Removed: Net income for the first nine months of 2024 was $390.2 million, an increase of $22.4 million, or 6.1%, from the same period last year.
−Removed: Diluted earnings per common share was $3.00, an increase of 7.1% compared to $2.80 per share in the same period last year.
−Removed: For the first nine months of 2024, the annualized return on average assets was 1.71%, the annualized return on average equity was 16.92%, and the efficiency ratio was 57.92%.
−Removed: Net interest income increased $23.9 million, or 3.2%, over the same period last year.
−Removed: This growth was largely due to an increase of $80.8 million in interest income on loans, an increase of $19.8 million in interest earned on deposits with banks, and a $35.4 million decrease in interest expense on borrowings, partly offset by a $92.9 million increase in interest expense on deposits.
−Removed: The provision for credit losses was $19.4 million for the first nine months of 2024, compared to a provision of $29.6 million in the same period last year.
−Removed: Non-interest income increased $32.0 million, or 7.5%, from the first nine months of last year mainly due to higher trust fees, deposit account fees, and capital market fees.
−Removed: Non-interest expense increased $35.8 million, or 5.3%, over the first nine months of last year mainly due to increases in salaries expense, data processing and software expense, and litigation settlement expense.
+Added: Diluted earnings per common share was $.98 per share in the current quarter, an increase of 19.5% compared to $.82 per share in the first quarter of 2024, and a decrease compared to $1.01 per share in the previous quarter.
+Added: Compared to the first quarter of last year, net interest income increased $20.1 million, or 8.1%, mainly due to increases in interest income on investment securities and securities purchased under agreements to resell ("resale agreements") of $10.5 million and $5.8 million, respectively.
+Added: In addition to the increase in interest income, interest expense on deposits decreased $9.2 million and interest expense on borrowings decreased $5.2 million.
+Added: The provision for credit losses increased $9.7 million, compared to the same quarter in the prior year due to an increase in the estimate of allowance for credit losses on loans.
+Added: Non-interest income increased $10.1 million, or 6.8%, compared to the first quarter of 2024, mainly due to an increase in trust fees, deposit account fees, and capital market fees.
+Added: Net losses on investment securities totaled $7.6 million in the current quarter compared to net losses of $259 thousand in the same quarter of last year.
+Added: Securities losses in the current quarter primarily resulted from net losses in fair value of $8.5 million recorded on private equity investment which were partly offset by net gains of $1.0 million on sales of private equity securities.
+Added: Non-interest expense decreased $7.3 million, or 3.0%, over the first quarter of 2024, mainly due to non-recurring litigation settlement expense and an FDIC special assessment accrual adjustment during the prior year, partly offset by higher marketing expense, professional and other services expense, salaries expense, and data processing and software expense.
Net Interest Income
The following table summarizes the changes in net interest income on a fully taxable-equivalent basis, by major category of interest earning assets and interest bearing liabilities, identifying changes related to volumes and rates.
−Removed: Changes not solely due to volume or rate changes are allocated to rate.
+Added: Changes not solely due to volume or rate are allocated to rate.
Analysis of Changes in Net Interest Income
−Removed: Three Months Ended September 30, 2024 vs.
−Removed: 2023 Nine Months Ended September 30, 2024 vs.
−Removed: Change due to Change due to
+Added: Three Months Ended March 31, 2025 vs.
+Added: Change due to
(In thousands) Average
Volume Average
−Removed: Total Average
−Removed: Volume Average
Interest income, fully taxable equivalent basis:
32 unchanged sentences
Net interest income, fully taxable-equivalent basis $ 9,682 $ 10,422 $ 20,104
−Removed: Net interest income in the third quarter of 2024 was $262.4 million, an increase of $13.8 million over the third quarter of 2023.
−Removed: On a fully taxable-equivalent (FTE) basis, net interest income totaled $264.6 million in the third quarter of 2024, up $13.7 million over the same period last year and up $60 thousand over the previous quarter.
+Added: Net interest income in the first quarter of 2025 was $269.1 million, an increase of $20.1 million over the first quarter of 2024.
+Added: On a fully taxable-equivalent (FTE) basis, net interest income totaled $271.4 million in the first quarter of 2025, up $20.1 million over the same period last year and up $2.5 million over the previous quarter.
The increase in net interest income
−Removed: compared to the third quarter of 2023 was mainly due to higher interest income earned on loans (FTE) of $14.1 million and lower interest expense on borrowings of $10.6 million, partly offset by higher deposit interest expense of $7.6 million and lower investment securities interest income of $7.0 million.
−Removed: The increase in total interest earned on loans (FTE) was mainly the result of higher loan yields on most loan products, especially commercial loans, many of which have variable rates.
−Removed: Interest income on investment securities declined mainly due to lower average balances.
−Removed: Interest expense on borrowings decreased mainly due to lower average balances, while the increase in deposit interest expense was due to higher average rates paid, partly offset by lower average balances.
−Removed: The Company's net yield on earning assets (FTE) was 3.50% in the current quarter compared to 3.11% in the third quarter of 2023.
−Removed: Total interest income (FTE) increased $10.7 million over the third quarter of 2023.
−Removed: Interest income on loans (FTE) was $271.8 million during the third quarter of 2024, an increase of $14.1 million, or 5.5%, over the same quarter last year.
−Removed: The increase in interest income over the same quarter of last year was primarily due to an increase of 33 basis points in the average rate earned and growth of $57.6 million in average loan balances.
−Removed: Most of the increase in interest income occurred in the business, personal real estate and consumer loan categories.
−Removed: The largest increase to interest income occurred in business loan interest, which grew $7.4 million due to a 40 basis point increase in the average rate earned, coupled with growth in average balances of $117.6 million, or 2.0%.
−Removed: Personal real estate loan interest income increased $3.3 million due to an increase of 37 basis points in the average rate earned and higher average balances of $55.1 million, or 1.8%.
−Removed: Consumer loan interest income grew $3.9 million due to a 67 basis point increase in the average rate earned and higher average balances of $27.2 million, or 1.3%.
−Removed: Business real estate loan interest income grew $292 thousand due to a 15 basis point increase in the average rate earned, partly offset by a decrease of $61.2 million, or 1.7%, in average loan balances.
−Removed: These increases in interest income were partly offset by a decrease in construction and land loan interest income of $1.4 million due to a decline of $108.3 million, or 7.2%, in average loan balances, partly offset by a 27 basis point increase in the average rate earned.
−Removed: Interest income on investment securities (FTE) was $63.3 million during the third quarter of 2024, which was a decrease of $7.0 million from the same quarter last year.
−Removed: The decrease in interest income occurred mainly in interest earned on mortgage-backed securities which declined $7.0 million due to a $1.1 billion, or 17.5%, decrease in average balances and an 11 basis point decline in the average rate earned.
−Removed: In addition, the Company recorded a $286 thousand adjustment to premium amortization at September 30, 2024, which decreased income and reflected slightly faster forward prepayment speed estimates on mortgage-backed securities.
−Removed: This was lower than the $1.3 million adjustment increasing income in the same quarter last year.
−Removed: Interest income earned on asset-backed securities declined $3.9 million due to lower average balances of $1.0 billion, or 40.3%, partly offset by a 46 basis point increase in the average rate earned.
+Added: compared to the first quarter of 2024 was mainly due to higher interest income earned on investment securities (FTE) of $10.3 million and lower deposit interest expense of $9.2 million, partly offset by lower interest income earned on loans (FTE) of $10.3 million.
+Added: The increase in total interest earned on investment securities (FTE) was mainly the result of higher average rates earned, while the decrease in deposit interest expense was due to lower average rates paid, slightly offset by higher average balances.
+Added: Interest income on loans (FTE) decreased mainly due to lower average rates earned, partly offset by higher average business loan balances.
+Added: The Company's net yield on earning assets (FTE) was 3.56% in the current quarter compared to 3.33% in the first quarter of 2024.
+Added: Total interest income (FTE) increased $5.6 million over the first quarter of 2024.
+Added: Interest income on loans (FTE) was $255.9 million during the first quarter of 2025, a decrease of $10.3 million, or 3.9%, from the same quarter last year.
+Added: The decrease in loan interest income from the same quarter of last year was primarily due to a decrease of 25 basis points in the average rate earned, partly offset by growth of $162.6 million, or 1.0%, in average loan balances.
+Added: Most of the decrease in interest income occurred in the construction and land, business real estate and business loan categories.
+Added: The largest decrease to interest income occurred in construction and land loan interest, which declined $5.3 million due to a 110 basis point decrease in the average rate earned, coupled with a decline in average balances of $57.2 million, or 3.9%.
+Added: Business real estate loan interest income decreased $4.8 million due to a decrease of 38 basis points in the average rate earned and lower average balances of $59.8 million, or 1.6%.
+Added: Business loan interest income declined $2.1 million due to a 32 basis point decrease in the average rate earned, partly offset by higher average balances of $232.7 million, or 4.0%.
+Added: Consumer credit card loan interest income declined $1.1 million mainly due to a 62 basis point decrease in the average rate earned.
+Added: These decreases in interest income were partly offset by an increase in personal real estate loan interest income of $2.4 million due to a 33 basis point increase in the average rate earned and growth of $14.7 million in average loan balances.
+Added: Interest income on investment securities (FTE) was $77.0 million during the first quarter of 2025, which was an increase of $10.3 million over the same quarter last year.
+Added: The increase in interest income occurred mainly in interest earned on U.S.
+Added: government and federal agency securities which grew $21.7 million due to a $1.7 billion increase in average balances and a 201 basis point increase in the average rate earned.
+Added: A portion of the increase in interest earned on U.S.
+Added: government securities was interest related to the Company's U.S.
+Added: Treasury inflation-protected securities, which are tied to the non-seasonally adjusted Consumer Price Index (CPI-U).
+Added: Interest earned on these securities increased $1.6 million over the same quarter last year.
+Added: Interest income earned on asset-backed securities grew $1.7 million due to a 107 basis point increase in the average rate earned, partly offset by a decrease in average balances of $429.3 million, or 20.6%.
+Added: These increases to interest income were partly offset by a decline in interest income on mortgage-backed securities of $7.5 million, driven by lower average balances of $1.1 billion, or 18.9%, and a decline of 11 basis points in the average rate earned.
+Added: In addition, the Company recorded a $539 thousand adjustment to premium amortization at March 31, 2025, which increased interest income and reflected slower forward prepayment speed estimates on mortgage-backed securities.
+Added: This increase was lower than the $2.0 million adjustment increasing income in the same quarter last year.
Interest income earned on state and municipal obligations declined $2.4 million mainly due to a $526.4 million, or 39.6%, decrease in average balances.
−Removed: Interest earned on other securities decreased $5.3 million, mainly due to a $2.3 million dividend from a private equity investment received in the third quarter of 2023, coupled with a decline of $290.3 million, or 56.4%, in average balances of debt securities.
−Removed: These decreases to interest income were partly offset by growth in interest income on U.S.
−Removed: government and federal agency obligations of $11.7 million, driven by a 137 basis point increase in the average rate earned and higher average balances of $902.7 million, or 91.5%.
−Removed: Interest income related to the Company's U.S.
−Removed: Treasury inflation-protected securities, which is tied to the non-seasonally adjusted Consumer Price Index (CPI-U), decreased $1.8 million from the same quarter last year.
−Removed: Additionally, the average rate earned on investment securities during the three months ended September 30, 2024 increased 19 basis points over the same period in the prior year.
−Removed: The average balance of the total investment portfolio (excluding unrealized fair value adjustments on available for sale debt securities) was $10.0 billion in the third quarter of 2024, compared to $11.9 billion in the third quarter of 2023.
−Removed: Interest income on securities purchased under agreements to resell increased $475 thousand over the same quarter last year, due to an increase of 145 basis points in the average rate earned, partly offset by a decline of $237.5 million, or 33.3%, in the average balance.
−Removed: Interest income on deposits at the Federal Reserve increased $3.3 million mainly due to an increase of $227.4 million, or 9.7%, in average deposit balances.
−Removed: The average fully taxable-equivalent yield on total interest earning assets was 4.96% in the third quarter of 2024, up from 4.51% in the third quarter of 2023.
−Removed: Total interest expense decreased $2.9 million compared to the third quarter of 2023 due to a decrease of $10.6 million in interest expense on borrowings, partly offset by a $7.6 million increase in interest expense on interest bearing deposits.
−Removed: Interest expense on other borrowings decreased $9.2 million due to a decrease of $684.8 million in average Federal Home Loan Bank (FHLB) borrowings.
−Removed: In addition, interest expense on federal funds purchased decreased $4.0 million mainly due to a $302.2 million decrease in the average balance, while interest expense on customer repurchase agreements increased $2.6 million mainly due to a 36 basis point increase in the average rate paid.
−Removed: The increase in deposit interest expense resulted mainly from an increase of $14.4 million in interest expense on interest checking and money market deposit accounts due to a 41 basis point increase in the average rate paid and an increase of $194.2 million, or 1.5%, in average balances.
−Removed: This increase was partly offset
−Removed: by a decrease in interest expense on certificates of deposit of $6.8 million mainly due to a $622.3 million, or 19.8%, decrease in average balances.
−Removed: The overall rate paid on total deposits increased 24 basis over the same quarter last year.
−Removed: The overall average rate incurred on all interest bearing liabilities was 2.22% and 2.12% in the third quarters of 2024 and 2023, respectively.
−Removed: Net interest income (FTE) for the first nine months of 2024 was $780.5 million compared to $756.1 million for the same period in 2023.
−Removed: For the first nine months of 2024, the net interest margin was 3.46% compared to 3.16% for the same period in 2023.
−Removed: Total interest income (FTE) for the first nine months of 2024 increased $81.1 million over the same period last year mainly due to higher interest income on loans (FTE) and balances at the Federal Reserve, partly offset by lower interest income on investment securities (FTE).
−Removed: Loan interest income (FTE) increased $81.9 million, or 11.3%, due to a 50 basis point increase in the average rate earned and a $410.7 million, or 2.5%, increase in average loan balances.
−Removed: Most of the increase occurred in the business, business real estate and consumer loan categories, but interest income in all loan categories increased mostly due to higher average rates earned.
−Removed: Interest income on investment securities (FTE) decreased $16.0 million due to a $2.2 billion decrease in average balances, partly offset by a 28 basis point increase in the average rate earned.
−Removed: Interest earned on mortgage-backed and asset-backed securities decreased $11.8 million and $11.1 million, respectively, due to lower average balances, partly offset by increases in the average rate earned.
−Removed: Interest earned on state and municipal obligations decreased $8.5 million due to declines in both the average balance and the average rate earned.
−Removed: These decreases in interest income on investment securities were partly offset by an increase in interest earned on U.S.
−Removed: government and federal agency obligations of $17.2 million, due to increases in both the average balance and the average rate earned.
−Removed: Interest income on securities purchased under agreements to resell decreased $3.5 million due to lower average balances, partly offset by higher average rates earned.
−Removed: Interest income on deposits at the Federal Reserve increased $19.8 million due to higher average balances and average rates earned.
−Removed: Total interest expense for the first nine months of 2024 increased $56.7 million compared to the same period last year.
−Removed: Interest expense on deposits increased $92.9 million, due to a 72 basis point increase in the average rate paid and a $138.3 million increase in average balances.
−Removed: Interest expense on borrowings decreased $36.2 million, mainly due lower FHLB borrowings of $950.9 million.
−Removed: In addition, interest expense on federal funds purchased declined mainly due to lower average balances, while interest expense on customer repurchase agreements increased due to higher average rates and average balances.
−Removed: The overall cost of total interest bearing liabilities increased to 2.21% compared to 1.74% in the same period last year.
+Added: Interest earned on other securities decreased $3.1 million mainly driven by dividend payments of $3.4 million from the Company's private equity investments recorded in 2024.
+Added: Additionally, the average rate earned on investment securities during the three months ended March 31, 2025 increased 54 basis points over the same period in the prior year.
+Added: The average balance of the total investment portfolio (excluding unrealized fair value adjustments on available for sale debt securities) was $10.5 billion in the first quarter of 2025, compared to $11.0 billion in the first quarter of 2024.
+Added: Interest income on securities purchased under agreements to resell increased $5.8 million over the same quarter last year, due to an increase of 188 basis points in the average rate earned and growth of $448.0 million in the average balance.
+Added: Interest income on deposits at the Federal Reserve decreased $183 thousand mainly due to a decline of 102 basis points in average rate earned, mostly offset by an increase of $450.1 million in the average balance.
+Added: The average fully taxable-equivalent yield on total interest earning assets was 4.81% in the first quarter of 2025, up from 4.78% in the first quarter of 2024.
+Added: Total interest expense decreased $14.5 million compared to the first quarter of 2024 due to decreases of $9.2 million in interest expense on interest bearing deposits and $5.2 million in interest expense on borrowings.
+Added: The decrease in deposit interest expense resulted mainly from a decrease of $6.0 million in interest expense on certificates of deposit due to a 59 basis point decline in the average rate paid and a decrease of $216.6 million, or 8.4%, in average balances.
+Added: Interest expense on interest checking and money market deposit accounts decreased $3.1 million due to a 17 basis point decrease in average rates paid, partly offset by an increase of $691.6 million, or 5.2%, in average balances.
+Added: The overall rate paid on total deposits decreased 25 basis points from the same quarter last year.
+Added: Interest expense on federal funds purchased decreased $3.0 million due to lower average balances of $199.9 million and a 105 basis point decline in the average rate paid.
+Added: Interest expense on customer repurchase agreements decreased $2.2 million due to a 57 basis point decline in the average rate paid, partly offset by
+Added: growth of $211.3 million in the average balance.
+Added: The overall average rate incurred on all interest bearing liabilities was 1.89% and 2.21% in the first quarters of 2025 and 2024, respectively.
Summaries of average assets and liabilities and the corresponding average rates earned/paid appear on the last page of this discussion.
Non-Interest Income
−Removed: Three Months Ended September 30 Increase (Decrease) Nine Months Ended September 30 Increase (Decrease)
−Removed: (Dollars in thousands) 2024 2023 Amount % change 2024 2023 Amount % change
+Added: Three Months Ended March 31 Increase (Decrease)
+Added: (Dollars in thousands) 2025 2024 Amount % change
Trust fees $ 56,592 $ 51,105 $ 5,487 10.7 %
1 unchanged sentence
Deposit account charges and other fees 26,622 24,151 2,471 10.2
−Removed: Consumer brokerage services 4,619 3,820 799 20.9 13,505 13,582 (77) (.6)
Capital market fees 5,112 3,892 1,220 31.3
+Added: Consumer brokerage services 4,785 4,408 377 8.6
Loan fees and sales 3,404 3,141 263 8.4
3 unchanged sentences
* Total revenue includes net interest income and non-interest income.
−Removed: The table below is a summary of net bank card transaction fees for the nine month periods ended September 30, 2024 and 2023.
−Removed: Three Months Ended September 30 Nine Months Ended September 30
−Removed: (Dollars in thousands) 2024 2023 $ change % change 2024 2023 $ change % change
+Added: The table below is a summary of net bank card transaction fees for the three month periods ended March 31, 2025 and 2024.
+Added: Three Months Ended March 31
+Added: (Dollars in thousands) 2025 2024 $ change % change
Net debit card fees $ 10,288 $ 10,405 $ (117) (1.1) %
3 unchanged sentences
Total bank card transaction fees $ 45,593 $ 46,930 $ (1,337) (2.8) %
−Removed: For the third quarter of 2024, total non-interest income amounted to $159.0 million compared to $142.9 million in the same quarter last year, which was an increase of $16.1 million, or 11.2%.
−Removed: The increase was mainly due to higher trust fees, capital market fees, deposit account fees and gains on the sales of real estate.
+Added: For the first quarter of 2025, total non-interest income amounted to $158.9 million compared to $148.8 million in the same quarter last year, which was an increase of $10.1 million, or 6.8%.
+Added: The increase was mainly due to higher trust fees, deposit account fees, capital market fees and other income.
Trust fees increased $5.5 million, or 10.7%, mainly due to growth of $5.1 million in private client trust fees.
−Removed: Bank card transaction fees for the current quarter grew $671 thousand, or 1.4%, over the same period last year.
−Removed: Net credit card fees increased $527 thousand and debit card fees increased $288 thousand mainly due to higher interchange fees and lower rewards expense.
−Removed: Net corporate card fees grew $234 thousand mainly due to lower rewards expense, while net merchant fees decreased $378 thousand mainly due to higher network expense.
−Removed: Compared to the third quarter of last year, deposit account fees increased $2.3 million, or 9.9%, mainly due to higher corporate cash management fees of $2.1 million.
−Removed: Consumer brokerage fees increased $799 thousand, mainly due to higher annuity fees, while capital market fees increased $2.5 million, or 70.1%, mainly due to higher trading securities income.
−Removed: Other non-interest income increased $3.9 million, or 28.9%, mainly due to an increase of $3.4 million in gains on the sales of real estate and an increase of $1.8 million in fair value adjustments was recorded on the Company's deferred compensation plan, which is held in a trust and recorded as both an asset and liability, affecting both other income and other expense.
−Removed: These increases were partly offset by lower tax credit sales income of $1.4 million.
−Removed: Non-interest income for the first nine months of 2024 was $460.1 million compared to $428.2 million in the first nine months of 2023, which was an increase of $32.0 million, or 7.5%.
−Removed: The increase was mainly due to higher trust fees, deposit account fees and capital market fees.
−Removed: Trust fees increased $16.3 million, or 11.5%, mainly due to higher private client and institutional trust fees.
−Removed: Bank card transaction fees for the current year declined $1.3 million, or .9%, from the same period last year, mainly due to a decrease of $2.6 million in net corporate card fees, partly offset by an increase in net credit card fees of $846 thousand.
−Removed: Deposit account fees increased $7.4 million, or 10.9%, mainly due to higher corporate cash management fees.
−Removed: Capital market fees increased $4.8 million, or 49.0%, mainly due to higher trading securities and underwriting income, while loan fees and sales increased $1.7 million mainly due to higher loan commitment fees and mortgage banking revenue.
−Removed: Other non-interest income increased $3.1 million, or 7.1%, mainly due to higher gains on the sales of assets of $3.3 million and an increase of $1.9 million in cash sweep commissions.
−Removed: These increases were partly offset by declines in letter of credit fees of $2.3 million and swap fees of $1.6 million.
+Added: Bank card transaction fees for the current quarter declined $1.3 million, or 2.8%, from the same period last year.
+Added: Net corporate card fees declined $1.6 million mainly due to lower interchange income, partly offset by lower rewards expense.
+Added: Net merchant fees increased $520 thousand mainly due to higher fees and lower network expense.
+Added: Net credit and debit card fees decreased $164 thousand and $117 thousand, respectively, mainly due to lower interchange fees.
+Added: Compared to the first quarter of last year, deposit account fees increased $2.5 million, or 10.2%, mainly due to higher corporate cash management fees of $2.6 million.
+Added: Capital market fees increased $1.2 million, or 31.3%, mainly due to higher underwriting and trading securities income, while consumer brokerage fees increased $377 thousand, or 8.6%, mainly due to higher advisory fees.
+Added: Other non-interest income increased $1.6 million, or 10.6%, mainly due to an increase of $2.4 million in gains on the sales of assets, partly offset by a decrease of $538 thousand in fair value adjustments recorded on the Company's deferred compensation plan, which is held in a trust and recorded as both an asset and liability, affecting both other income and other expense.
Investment Securities Gains (Losses), Net
−Removed: Three Months Ended September 30 Nine Months Ended September 30
+Added: Three Months Ended March 31
(In thousands) 2025 2024
4 unchanged sentences
Total investment securities gains (losses), net $ (7,591) $ (259)
−Removed: Net gains on investment securities, which were recognized in earnings during the three months ended September 30, 2024 and 2023, are shown in the table above.
−Removed: Net securities gains of $3.9 million were reported in the third quarter of 2024, compared to net gains of $4.3 million in the same period last year.
−Removed: The net gains in the third quarter of 2024 were mainly comprised of net gains in fair value of $7.4 million recorded on private equity investments and net gains of $2.0 million on the sales of private equity investments.
−Removed: These gains were partly offset by net losses of $5.4 million on sales of available for sale debt securities.
−Removed: The net gains on investment securities for the same quarter last year were primarily comprised of $5.6 million of net gains in fair value on the Company’s private equity investments, partially offset by a loss of $1.2 million on the sale of private equity investments.
−Removed: Net gains on investment securities of $6.8 million were recognized in earnings for the nine months ended September 30, 2024, compared to net gains of $7.4 million for the same period in 2023.
−Removed: Net gains in the first nine months of 2024 were mainly comprised of net gains of $178.1 million on equity investments and net gains in fair value of $20.2 million recorded on private equity investments, largely offset by net losses of $192.9 million on sales of available for sale securities.
−Removed: Net gains in the first nine months of 2023 were mainly comprised of net gains in fair value of $16.9 million on private equity investments, due to fair value adjustments, partially offset by losses of $8.4 million on sales of available for sale debt securities.
−Removed: The portion of private equity activity attributable to minority interests is reported as non-controlling interest in the consolidated statements of income and resulted in expense of $3.4 million during the first nine months of 2024 and expense of $3.3 million during the first nine months of 2023.
−Removed: The Company's significant gains in equity securities for the three and nine months ended September 30, 2024 primarily relate to gains recorded on its shares of Visa, as described in Note 3, Investment Securities.
−Removed: Likewise, the $192.9 million losses realized on the Company's available for sale debt securities portfolio mainly relate to the successful execution of its planned available for sale debt security portfolio repositioning, in which the Company sold bonds with an amortized cost of $1.2 billion and subsequently reinvested the proceeds into higher yielding available for sale debt securities.
−Removed: Additional information about the Company's available for sale debt portfolio repositioning transactions is discussed in Note 3, Investment Securities.
+Added: Net gains and losses on investment securities, which were recognized in earnings during the three months ended March 31, 2025 and 2024, are shown in the table above.
+Added: Net securities losses of $7.6 million were reported in the first quarter of 2025, compared to net losses of $259 thousand in the same period last year.
+Added: The net losses in the first quarter of 2025 were mainly comprised of net losses in fair value of $8.5 million recorded on private equity investments, partly offset by net gains of $1.0 million on sales of private equity investments.
+Added: The net losses on investment securities for the same quarter last year were primarily comprised of net losses of $8.5 million realized on the sale of available for sale securities, mostly offset by net gains in fair value of $7.1 million and a gain of $969 thousand on the sale of an investment, both in the Company's private equity investment portfolio.
+Added: The portion of private equity activity attributable to minority interests is reported as non-controlling interest in the consolidated statements of income and resulted in income of $1.5 million during the first three months of 2025 and expense of $1.5 million during the first three months of 2024.
Non-Interest Expense
−Removed: Three Months Ended September 30 Increase (Decrease) Nine Months Ended September 30 Increase (Decrease)
−Removed: (Dollars in thousands) 2024 2023 Amount % change 2024 2023 Amount % change
+Added: Three Months Ended March 31 Increase (Decrease)
+Added: (Dollars in thousands) 2025 2024 Amount % change
Salaries and employee benefits $ 153,078 $ 151,801 $ 1,277 .8 %
2 unchanged sentences
Professional and other services 10,026 8,648 1,378 15.9
−Removed: Equipment 5,286 4,697 589 12.5 15,387 14,411 976 6.8
Marketing 5,843 4,036 1,807 44.8
+Added: Equipment 5,248 5,010 238 4.8
Supplies and communication 5,046 4,744 302 6.4
2 unchanged sentences
Total non-interest expense $ 238,376 $ 245,697 $ (7,321) (3.0) %
−Removed: Non-interest expense for the third quarter of 2024 amounted to $237.6 million, an increase of $9.6 million, or 4.2%, compared to expense of $228.0 million in the third quarter of last year.
−Removed: The increase in expense over the same period last year was mainly due to higher salaries and benefits expense, data processing and software expense and marketing expense, partly offset by lower deposit insurance expense.
−Removed: Salaries and employee benefits expense increased $6.3 million, or 4.3%, mainly due
−Removed: to higher full-time salaries expense of $3.5 million and incentive compensation expense of $2.2 million.
−Removed: Full-time equivalent employees totaled 4,711 at September 30, 2024, compared to 4,714 at September 30, 2023.
−Removed: Data processing and software expense increased $1.5 million, or 4.7%, mainly due to increased costs for service providers, and marketing expense increased $1.1 million, or 18.0%.
−Removed: Deposit insurance expense decreased $1.1 million which was partly the result of a $525 thousand accrual adjustment in the current quarter to the FDIC's special assessment.
−Removed: Other non-interest expense increased $1.2 million, or 14.6%, mainly due to an increase of $1.8 million in fair value adjustments recorded on the Company's deferred compensation plan.
−Removed: Non-interest expense amounted to $715.5 million for the first nine months of 2024, an increase of $35.8 million, or 5.3%, over the first nine months of 2023.
−Removed: Salaries and benefits expense increased $17.4 million, or 4.0%, mainly due to higher full-time salaries expense, incentive compensation and payroll taxes.
−Removed: Data processing and software expense increased $7.3 million, or 8.3%, due to increased costs for service providers and higher bank card processing fees.
−Removed: Equipment expense increased $976 thousand, or 6.8%, mainly due to higher depreciation expense, while marketing expense decreased $1.3 million, or 7.4%.
−Removed: Other non-interest expense increased $11.9 million, or 40.5%, mainly due to litigation settlement expense of $10.0 million, net of insurance, and a $5.0 million donation to a related charitable foundation, both recorded in 2024, partly offset by deconversion expense of $2.1 million recorded in 2023.
+Added: Non-interest expense for the first quarter of 2025 amounted to $238.4 million, a decrease of $7.3 million, or 3.0%, compared to expense of $245.7 million in the first quarter of last year.
+Added: The decrease in expense from the same period last year was mainly due to lower deposit insurance expense and litigation settlement expense, partly offset by higher marketing expense, professional and other services expense, salaries expense and data processing and software expense.
+Added: Salaries and employee benefits expense increased $1.3 million, or .8%, mainly due to higher incentive compensation expense of $811 thousand and full-time salaries expense of $578 thousand, partly offset by lower medical expense of $970 thousand.
+Added: Full-time equivalent employees totaled 4,662 at March 31, 2025, compared to 4,721 at March 31, 2024.
+Added: Data processing and software expense increased $1.1 million, or 3.5%, mainly due to higher costs for service providers and software.
+Added: Net occupancy increased $446 thousand, 3.3%, mainly due to higher demolition costs.
+Added: Professional and other services expense increased $1.4 million, or 15.9%, and marketing expense increased $1.8 million, or 44.8%.
+Added: Deposit insurance expense decreased $4.3 million due to a $4.0 million accrual adjustment recorded in 2024 for a one-time FDIC special assessment to replenish the Deposit Insurance Fund.
+Added: Other non-interest expense decreased $9.6 million, or 51.2%, mainly due to a $10.0 million litigation settlement recorded in 2024 that did not reoccur.
Provision and Allowance for Credit Losses on Loans and Liability for Unfunded Lending Commitments
−Removed: Three Months Ended Nine Months Ended September 30
−Removed: (In thousands) Sept.
−Removed: 30, 2024 June 30, 2024 Sept.
−Removed: 30, 2023 2024 2023
+Added: Three Months Ended
+Added: (In thousands) Mar.
+Added: 31, 2025 Dec.
+Added: 31, 2024 Mar.
ALLOWANCE FOR CREDIT LOSSES ON LOANS
20 unchanged sentences
ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LIABILITY FOR UNFUNDED LENDING COMMITMENTS $ 185,358 $ 181,677 $ 183,551
−Removed: Three Months Ended Nine Months Ended September 30
−Removed: 30, 2024 June 30, 2024 Sept.
−Removed: 30, 2023 2024 2023
+Added: Three Months Ended
+Added: 31, 2025 Dec.
+Added: 31, 2024 Mar.
Annualized net loan charge-offs (recoveries)*:
13 unchanged sentences
The following schedule provides a breakdown of the allowance for credit losses on loans (ACL) by loan class and the percentage of the allowance for credit losses to the related loan class at period end.
−Removed: (Dollars in thousands) Sept.
−Removed: 30, 2024 June 30, 2024 Sept.
+Added: (Dollars in thousands) Mar.
+Added: 31, 2025 Dec.
+Added: 31, 2024 Mar.
Credit Loss Allowance Allocation % of ACL to Loan Category Credit Loss Allowance Allocation % of ACL to Loan Category Credit Loss Allowance Allocation % of ACL to Loan Category
11 unchanged sentences
The Company's policies and processes for determining the allowance for credit losses on loans and the liability for unfunded lending commitments are discussed in Note 1 to the consolidated financial statements and in the " Allowance for Credit Losses" discussion within Critical Accounting Estimates and Related Policies in Item 7 of the 2024 Annual Report on Form 10-K.
−Removed: Net loan charge-offs in the third quarter of 2024 amounted to $9.6 million, compared to $9.8 million in the prior quarter and $9.8 million in the third quarter of last year.
−Removed: Comp ared to the same period last year, total net loan charge-offs in the third quarter of 2024 decreased $205 thousand and decreased $178 thousand from the previous quarter.
−Removed: The decrease over the prior year was mainly driven by a $2.5 million decrease in net charge-offs on business loans, partly offset by higher net charge-offs of $1.6 million and $962 thousand on consumer credit card and consumer loans, respectively.
−Removed: The decrease from the previous quarter was driven by decreases in net charge-offs on consumer credit card and business loans, partly offset by an increase in net charge-offs on consumer loans.
−Removed: For the three months ended September 30, 2024, annualized net charge-offs on average consumer credit card loans were 4.46%, compared to 4.91% in the previous quarter and 3.32% in the same period last year.
+Added: Net loan charge-offs in the first quarter of 2025 amounted to $10.8 million, compared to $10.7 million in the prior quarter and $8.9 million in the first quarter of last year.
+Added: Comp ared to the same period last year, total net loan charge-offs in the first quarter of 2025 increased $1.9 million and increased $152 thousand over the previous quarter.
+Added: The increase over the prior year was mainly driven by increases of $869 thousand, $532 thousand, and $518 thousand in consumer, consumer credit card, and business real estate loan net charge-offs, respectively.
+Added: The increase over the previous quarter was driven by increases in net charge-offs on consumer credit card and business real estate loans, largely offset by decreases in net charge-offs on consumer and business loans.
+Added: For the three months ended March 31, 2025, annualized net charge-offs on average consumer credit card loans were 5.04%, compared to 4.59% in the previous quarter and 4.60% in the same period last year.
Consumer loan annualized net charge-offs in the current quarter amounted to .56%, compared to .62% in the prior quarter and .38% in the same period last year.
−Removed: In the third quarter of 2024 , total annualized net loan charge-offs were .22%, compared to .23% in the previous quarter and .23% in the same period last year.
−Removed: The provision for credit losses on loans was $11.9 million, which was a $1.5 million decrease over the $13.3 million provision recorded in the same period last year and a $4.0 million increase over the $7.8 million provision recorded at June 30, 2024.
−Removed: The decrease in the provision for credit losses on loans during the third quarter of 2024 over the same period last year was due to growth in the allowance for credit losses on loans in the third quarter of 2023.
−Removed: For the nine months ended September 30, 2024, net loan charge-offs amounted to $28.2 million, which was a $5.2 million increase over the first nine months of 2023.
−Removed: The increase in net charge-offs on loans during the first nine months of 2024 was primarily driven by an increase in net charge-offs on consumer credit card and consumer loans, partly offset by lower net charge-offs on business loans.
−Removed: For the nine months ended September 30, 2024, annualized net loan charge-offs on consumer credit card and consumer loans were 4.65% and .41%, respectively, compared to 3.28% and .28%, respectively, for the same period last year.
−Removed: The annualized net charge-offs on loans for the nine months ended September 30, 2024 and 2023, respectively, were .22% and .18%.
−Removed: For the nine months ended September 30, 2024, the provision for credit losses on loans was $26.7 million, which was an $8.5 million decrease from the $35.2 million provision recorded in the same period last year.
+Added: In the first quarter of 2025 , total annualized net loan charge-offs were .25%, compared to .25% in the previous quarter and .21% in the same period last year.
+Added: For the three months ended March 31, 2025, the provision for credit losses on loans was $15.1 million, which was an $8.1 million increase over the $6.9 million provision recorded in the same period last year.
+Added: The increase resulted from the provision recorded for the first three months of 2024 including a reduction of the allowance for credit losses on loans, while the provision for credit losses in the first three months of 2025 includes an increase in the allowance for credit losses on loans.
+Added: The provision for credit losses on loans for the three months ended March 31, 2025 increased $2.5 million increase over the $12.6 million provision recorded for the three months ending December 31, 2024.
Changes in the provision are driven by changes in the estimate for the allowance for credit losses on loans.
−Removed: The decrease in the provision for credit losses on loans in the first nine months of 2024 compared to the same period last year was primarily due to a reduction of the allowance for credit losses on loans during 2024, caused in part by an improving economic forecast in 2024, whereas the allowance for
−Removed: credit losses on loans in the first nine months of 2023 was increasing due to a weakening economic forecast which included a mild recession.
−Removed: The decrease in the provision for credit losses on loans during the first nine months of 2024 compared to the same period in the prior year was partly offset by higher net charge-offs recorded in the nine months ended September 30, 2024 compared to the first nine months of 2023.
−Removed: For the nine months ended September 30, 2024, the allowance for credit losses on loans decreased by $1.6 million, compared to the allowance for credit losses on loans at December 31, 2023.
−Removed: During the nine months ended September 30, 2024, the allowance for credit losses on commercial loans decreased by $1.2 million, while the allowance for credit losses related to personal banking loans, including consumer credit card loans, decreased $402 thousand.
−Removed: The decrease in the allowance for credit losses on loans during the first nine months of 2024 was primarily the result of a slightly more optimistic economic forecast at September 30, 2024 and a decrease in outstanding loan balances, partially offset by an increase in the allowance related to loans risk-rated special mention, substandard, or non-accrual.
−Removed: The allowance for credit losses on loans was $160.8 million at September 30, 2024 and was .94%, .94% and .95% of total loans at September 30, 2024, December 31, 2023 and September 30, 2023, respectively.
−Removed: In the current quarter, the provision for credit losses on unfunded lending commitments was a benefit of $2.7 million, compared to a benefit of $1.7 million for the nine months ended September 30, 2023.
−Removed: For the nine months ended September 30, 2024, the provision for credit losses on unfunded commitments was a benefit of $7.3 million compared to a benefit of $5.6 million in the first nine months of 2023.
−Removed: At September 30, 2024, the liability for unfunded lending commitments was $18.0 million, compared to $25.2 million at December 31, 2023 and $27.5 million at September 30, 2023.
+Added: At March 31, 2025, the allowance for credit losses on loans increased by $4.3 million, compared to the allowance for credit losses on loans at December 31, 2024.
+Added: The forecast utilized to estimate the allowance for credit losses at March 31, 2025 reflected a slight decline in key macroeconomic variables, causing the allowance to increase.
+Added: In the commercial loan portfolio, the increase in the allowance related to the decline in forecast variables was mostly offset by improvements in the volume of loans classified as substandard or requiring additional qualitative factors due to the type of industry.
+Added: The allowance for the personal banking loan portfolio increased $4.4 million compared to December 31, 2024 due to the changes in the forecast assumptions, in addition to lower prepayment speeds in the personal real estate loan portfolio and increased loss experience in the consumer loan portfolio, partially offset by decreases in outstanding loan balances in the consumer credit card portfolio.
+Added: The allowance for credit losses on loans was $167.0 million at March 31, 2025 and was .96%, .95% and .93% of total loans at March 31, 2025, December 31, 2024 and March 31, 2024, respectively.
+Added: In the current quarter, the provision for credit losses on unfunded lending commitments was a benefit of $608 thousand, compared to a benefit of $2.2 million for the three months ended March 31, 2024.
+Added: At March 31, 2025, the liability for unfunded lending commitments was $18.3 million, compared to $18.9 million at December 31, 2024 and $23.1 million at March 31, 2024.
The liability decreased primarily due to decreases in unfunded lending commitment balances, coupled with improvement in loss rate assumptions for the Company's construction loans.
1 unchanged sentence
See Note 2 for further discussion of the model inputs utilized in the Company's estimate of credit losses.
−Removed: The Company considers the allowance for credit losses on loans and the liability for unfunded commitments adequate to cover losses expected in the loan portfolio, including unfunded commitments, at September 30, 2024.
+Added: The Company considers the allowance for credit losses on loans and the liability for unfunded commitments adequate to cover losses expected in the loan portfolio, including unfunded commitments, at March 31, 2025.
The allowance for credit losses on loans and the liability for unfunded lending commitments are estimates that require significant judgment including projections of the macro-economic environment.
9 unchanged sentences
(Dollars in thousands)
−Removed: September 30, 2024 December 31, 2023
+Added: March 31, 2025 December 31, 2024
Non-accrual loans $ 22,603 $ 18,278
4 unchanged sentences
Total loans past due 90 days and still accruing interest $ 19,417 $ 24,516
−Removed: Non-accrual loans totaled $18.4 million at September 30, 2024, an increase of $11.1 million from the balance at December 31, 2023.
−Removed: The increase occurred mainly in business real estate non-accrual loans, which increased $14.9 million.
−Removed: The increase was partly offset by a $3.3 million decrease in business non-accrual loans.
−Removed: At September 30, 2024, non-accrual loans
−Removed: were comprised of business real estate (81.1%), revolving home equity (10.7%), personal real estate (6.2%), and business (1.9%) loans.
−Removed: Foreclosed real estate totaled $1.0 million at September 30, 2024, an increase of $780 thousand compared to December 31, 2023.
−Removed: Total loans past due 90 days or more and still accruing interest totaled $22.0 million as of September 30, 2024, an increase of $122 thousand from December 31, 2023.
+Added: Non-accrual loans totaled $22.6 million at March 31, 2025, an increase of $4.3 million from the balance at December 31, 2024.
+Added: The increase occurred mainly in business real estate non-accrual loans, which increased $3.4 million, as well as business non-accrual loans, which increased $1.0 million.
+Added: At March 31, 2025, non-accrual loans were comprised of business real estate (81.0%), revolving home equity (8.7%), business (4.9%), personal real estate (4.4%), and construction and land (1.0%) loans.
+Added: Foreclosed real estate totaled $642 thousand at March 31, 2025, an increase of $299 thousand compared to December 31, 2024.
+Added: Total loans past due 90 days or more and still accruing interest totaled $19.4 million as of March 31, 2025, a decrease of $5.1 million from December 31, 2024.
Balances by class for non-accrual loans and loans past due 90 days and still accruing interest are shown in the "Delinquent and non-accrual loans" section in Note 2 to the consolidated financial statements.
3 unchanged sentences
Although these loans are generally identified as potential problem loans, they may never become non-performing.
−Removed: Such loans totaled $319.4 million at September 30, 2024 compared with $216.4 million at December 31, 2023, resulting in an increase of $103.0 million, or 47.6%.
+Added: Such loans totaled $286.9 million at March 31, 2025 compared to $330.3 million at December 31, 2024, resulting in a decrease of $43.5 million, or 13.2%.
(In thousands)
−Removed: September 30, 2024 December 31, 2023
+Added: March 31, 2025 December 31, 2024
Potential problem loans:
5 unchanged sentences
When borrowers are experiencing financial difficulty, the Company may agree to modify the contractual terms of a loan to a borrower in order to assist the borrower in repaying principal and interest owed to the Company.
−Removed: At September 30, 2024, the Company held $184.4 million of loans that had been modified during the nine months ended September 30, 2024.
+Added: At March 31, 2025, the Company held $136.3 million of loans that had been modified during the three months ended March 31, 2025.
These loans are further discussed in the "Modifications for borrowers experiencing financial difficulty" section in Note 2 to the consolidated financial statements.
6 unchanged sentences
Real Estate – Construction and Land Loans
−Removed: The Company's portfolio of construction and land loans, as shown in the table below, amounted to 8.1% of total loans outstanding at September 30, 2024.
−Removed: The largest component of construction and land loans was commercial construction, which decreased $53.8 million during the nine months ended September 30, 2024.
−Removed: At September 30, 2024, multi-family residential construction loans totaled approximately $459.1 million, or 39.3%, of the commercial construction loan portfolio, compared to $414.6 million, or 33.9%, at December 31, 2023.
−Removed: (Dollars in thousands) September 30,
+Added: The Company's portfolio of construction and land loans, as shown in the table below, amounted to 8.2% of total loans outstanding at March 31, 2025.
+Added: The largest component of construction and land loans was commercial construction, which increased $18.6 million during the three months ended March 31, 2025.
+Added: At March 31, 2025, multi-family residential construction loans totaled approximately $585.7 million, or 48.2%, of the commercial construction loan portfolio, compared to $526.6 million, or 44.0%, at December 31, 2024.
+Added: (Dollars in thousands) March 31,
December 31, 2024
5 unchanged sentences
Real Estate – Business Loans
−Removed: Total business real estate loans were $3.6 billion at September 30, 2024 and comprised 21.0% of the Company's total loan portfolio.
+Added: Total business real estate loans were $3.6 billion at March 31, 2025 and comprised 20.9% of the Company's total loan portfolio.
These loans include properties such as manufacturing and warehouse buildings, small office and medical buildings, churches, hotels and motels, shopping centers, and other commercial properties.
−Removed: At September 30, 2024, 33.4% of business real estate loans were for owner-occupied real estate properties, which have historically resulted in lower net charge-off rates than non-owner-occupied commercial real estate loans.
−Removed: (Dollars in thousands) September 30,
+Added: At March 31, 2025, 34.5% of business real estate loans were for owner-occupied real estate properties, which have historically resulted in lower net charge-off rates than non-owner-occupied commercial real estate loans.
+Added: (Dollars in thousands) March 31,
December 31, 2024
9 unchanged sentences
Total real estate - business loans $ 3,628,635 100.0 % 20.9 % $ 3,661,218 100.0 % 21.3 %
−Removed: Information about the credit quality of the Company's business real estate loan portfolio as of September 30, 2024 and December 31, 2023 is provided in the table below.
+Added: Information about the credit quality of the Company's business real estate loan portfolio as of March 31, 2025 and December 31, 2024 is provided in the table below.
(Dollars in thousands) Pass Special Mention Substandard Non-Accrual Total
−Removed: September 30, 2024
+Added: March 31, 2025
Owner-occupied $ 1,194,765 $ 24,527 $ 29,651 $ 3,637 $ 1,252,580
20 unchanged sentences
Revolving Home Equity Loans
−Removed: The Company had $342.4 million in revolving home equity loans at September 30, 2024 that were collateralized by residential real estate.
+Added: The Company had $356.7 million in revolving home equity loans at March 31, 2025 that were collateralized by residential real estate.
Most of these loans (93.3%) are written with terms requiring interest-only monthly payments.
1 unchanged sentence
LTV up to 80%, 80% to 90%, and 90% to 100%.
−Removed: As of September 30, 2024, the
−Removed: outstanding principal of loans with an original LTV higher than 80% was $30.7 million, or 9.0% of the portfolio, compared to $32.3 million as of December 31, 2023.
−Removed: Total revolving home equity loan balances over 30 days past due were $4.7 million at September 30, 2024 and $4.4 million at December 31, 2023, and the outstanding balance of revolving home equity loans on non-accrual status was $2.0 million at both September 30, 2024 and December 31, 2023.
−Removed: The weighted average FICO score for the total portfolio balance at September 30, 2024 is 785.
+Added: As of March 31, 2025, the outstanding
+Added: principal of loans with an original LTV higher than 80% was $30.0 million, or 8.6% of the portfolio, compared to $31.9 million as of December 31, 2024.
+Added: Total revolving home equity loan balances over 30 days past due were $3.5 million at March 31, 2025 and $5.6 million at December 31, 2024, and the outstanding balance of revolving home equity loans on non-accrual status was $2.0 million at both March 31, 2025 and December 31, 2024.
+Added: The weighted average FICO score for the total portfolio balance at March 31, 2025 is 774.
At maturity, the accounts are re-underwritten, and if they qualify under the Company's credit, collateral and capacity policies, the borrower is given the option to renew the line of credit or convert the outstanding balance to an amortizing loan.
5 unchanged sentences
Within the consumer loan portfolio are several direct and indirect product lines, which include loans for the purchase of automobiles, motorcycles, marine and RVs.
−Removed: Auto loans comprised 37.9% of the consumer loan portfolio at September 30, 2024, and outstanding balances for auto loans were $799.7 million and $820.3 million at September 30, 2024 and December 31, 2023, respectively.
−Removed: The balances over 30 days past due amounted to $11.1 million at September 30, 2024 and $9.5 million at December 31, 2023, respectively, and comprised 1.4% of the outstanding balances of these loans at September 30, 2024 and 1.2% at December 31, 2023.
−Removed: For the nine months ended September 30, 2024, $260.6 million of new auto loans were originated, compared to $290.3 million during the first nine months of 2023.
−Removed: At September 30, 2024, the automobile loan portfolio had a weighted average FICO score of 754, and net charge-offs on auto loans were .6% of average auto loans.
−Removed: The Company's consumer loan portfolio also includes fixed rate home equity loans, typically for home repair or remodeling, and these loans comprised 10.8% of the consumer loan portfolio at September 30, 2024.
−Removed: Losses on these loans have historically been low, and the Company saw net recoveries of $78 thousand for the first nine months of 2024.
−Removed: Private banking loans comprised 34.6% of the consumer loan portfolio at September 30, 2024.
−Removed: The Company's private banking loans are generally well-collateralized, and at September 30, 2024 were secured primarily by assets held by the Company's trust department.
+Added: Auto loans comprised 36.6% of the consumer loan portfolio at March 31, 2025, and outstanding balances for auto loans were $774.3 million and $776.7 million at March 31, 2025 and December 31, 2024, respectively.
+Added: The balances over 30 days past due amounted to $10.9 million at March 31, 2025 and $14.4 million at December 31, 2024, respectively, and comprised 1.4% of the outstanding balances of these loans at March 31, 2025 and 1.9% at December 31, 2024.
+Added: For the three months ended March 31, 2025, $98.0 million of new auto loans were originated, compared to $101.2 million during the first three months of 2024.
+Added: At March 31, 2025, the automobile loan portfolio had a weighted average FICO score of 755, and net charge-offs on auto loans were 1.1% of average auto loans.
+Added: The Company's consumer loan portfolio also includes fixed rate home equity loans, typically for home repair or remodeling, and these loans comprised 10.3% of the consumer loan portfolio at March 31, 2025.
+Added: Losses on these loans have historically been low, and the Company saw net recoveries of $14 thousand for the first three months of 2025.
+Added: Private banking loans comprised 37.3% of the consumer loan portfolio at March 31, 2025.
+Added: The Company's private banking loans are generally well-collateralized, and at March 31, 2025 were secured primarily by assets held by the Company's trust department.
The remaining portion of the Company's consumer loan portfolio is comprised of health services financing, motorcycles, marine and RV loans.
−Removed: Net charge-offs on private banking, health services financing, motorcycle and marine and RV loans totaled $3.2 million in the first nine months of 2024 and were .4% of the average balances of these loans at September 30, 2024.
+Added: Net charge-offs on private banking, health services financing, motorcycle and marine and RV loans totaled $823 thousand in the first three months of 2025 and were .3% of the average balances of these loans at March 31, 2025.
Consumer Credit Card Loans
The Company offers low promotional rates on selected consumer credit card products.
−Removed: Out of a portfolio at September 30, 2024 of $574.7 million in consumer credit card loans outstanding, approximately $116.0 million, or 20.2%, carried a low promotional rate.
+Added: Out of a portfolio at March 31, 2025 of $568.2 million in consumer credit card loans outstanding, approximately $120.3 million, or 21.2%, carried a low promotional rate.
Within the next six months, $52.7 million of these loans are scheduled to convert to the ongoing higher contractual rate.
1 unchanged sentence
Management believes that the risks in the consumer loan portfolio are reasonable and the anticipated loss ratios are within acceptable parameters.
+Added: March 31, 2025 December 31, 2024
+Added: 100.0 % 100.0 %
Oil and Gas Energy Lending
−Removed: The Company's energy lending portfolio is comprised of lending to the petroleum and natural gas sectors and totaled $262.2 million, or 1.5% of total loans at September 30, 2024, a decrease of $9.8 million from December 31, 2023, as shown in the table below.
+Added: The Company's energy lending portfolio is comprised of lending to the petroleum and natural gas sectors and totaled $322.4 million, or 1.9% of total loans at March 31, 2025, a decrease of $15.6 million from December 31, 2024, as shown in the table below.
(In thousands)
−Removed: September 30, 2024 December 31, 2023 Unfunded commitments at September 30, 2024
+Added: March 31, 2025 December 31, 2024 Unfunded commitments at March 31, 2025
Extraction $ 258,642 $ 274,265 $ 151,489
6 unchanged sentences
Regulations define SNCs as loans exceeding $100 million that are shared by three or more financial institutions.
−Removed: The Company typically participates in these loans when business operations are maintained in the local
−Removed: communities or regional markets and opportunities to provide other banking services are present.
−Removed: The balance of SNC loans totaled $1.6 billion and $1.5 billion at September 30, 2024 and December 31, 2023, respectively.
−Removed: Additional unfunded commitments at September 30, 2024 totaled $2.4 billion.
−Removed: Income tax expense was $38.2 million in the third quarter of 2024, compared to $38.6 million in the second quarter of 2024 and $33.4 million in the third quarter of 2023.
−Removed: The Company's effective tax rate, including the effect of non-controlling interest, was 21.7% in the third quarter of 2024, unchanged from both the previous quarter, and the third quarter of 2023.
+Added: The Company typically participates in these loans when business operations are maintained in the local communities or regional markets and opportunities to provide other banking services are present.
+Added: The balance of SNC loans totaled $1.6 billion at both March 31, 2025 and December 31, 2024.
+Added: Additional unfunded commitments at March 31, 2025 totaled $2.3 billion.
+Added: Income tax expense was $37.0 million in the first quarter of 2025, compared to $36.6 million in the fourth quarter of 2024 and $31.7 million in the first quarter of 2024.
+Added: The Company's effective tax rate, including the effect of non-controlling interest, was 21.9% in the first quarter of 2025, compared to 21.2% in the fourth quarter of 2024 and 21.9% in the first quarter of 2024.
Financial Condition
Balance Sheet
−Removed: Total assets of the Company were $31.5 billion at September 30, 2024 and $31.7 billion at December 31, 2023.
−Removed: Earning assets (excluding the allowance for credit losses on loans and fair value adjustments on debt securities) amounted to $30.5 billion at September 30, 2024 and $31.1 billion at December 31, 2023, and consisted of 56% in loans and 34% in investment securities at September 30, 2024.
−Removed: At September 30, 2024, total loans decreased $115.5 million or .7%, compared to balances at December 31, 2023.
−Removed: The decrease was mainly due to declines in business real estate, construction and consumer credit card loans of $132.3 million, $65.2 million, and $15.2 million, respectively.
−Removed: These decreases were partly offset by an increase of $29.3 million in business loans, mainly due to growth in commercial and industrial lending and tax-free loan balances.
−Removed: In addition, personal real estate loans increased $17.4 million, while consumer loans, which includes automobile, private banking, health services financing, fixed rate home equity and other consumer loans, increased $30.6 million.
−Removed: Growth in consumer loans was mainly due to increases in private banking and health services financing loans, partially offset by a decline in auto loan balances.
−Removed: Total available for sale debt securities, excluding fair value adjustments, decreased $950.7 million at September 30, 2024 compared to December 31, 2023.
−Removed: Purchases of available for sale debt securities during this period totaled $2.1 billion, offset by available for sale debt security sales, maturities and pay downs of $3.0 billion.
−Removed: The decline in available for sale debit securities was mainly the result of lower balances of mortgage-backed securities, asset-backed securities and state and municipal obligations, which decreased $326.2 million, $716.1 million, and $497.1 million, respectively, at September 30, 2024 compared to December 31, 2023.
−Removed: These decreases were partly offset by an increase of $1.5 billion in balances of U.S.
−Removed: government and federal agency obligations.
−Removed: At September 30, 2024, the duration of the available for sale investment portfolio was 4.0 years, and maturities and pay downs of approximately $1.6 billion are expected to occur during the next 12 months.
−Removed: The Company does not have any investment securities classified as held-to-maturity.
−Removed: Total deposits at September 30, 2024 amounted to $25.2 billion, a decrease of $126.1 million compared to December 31, 2023.
−Removed: The decline in deposits largely resulted from a decrease in demand deposits, mainly in business demand deposits (decrease of $550.2 million).
−Removed: Additionally, certificate of deposit balances decreased $250.6 million while interest checking balances increased $723.2 million over balances at December 31, 2023.
−Removed: The Company’s borrowings totaled $2.2 billion at September 30, 2024, a decrease of $717.8 million from balances at December 31, 2023, mainly due to a decline in securities sold under agreements to repurchase.
+Added: Total assets of the Company were $32.4 billion at March 31, 2025 and $32.0 billion at December 31, 2024.
+Added: Earning assets (excluding the allowance for credit losses on loans and fair value adjustments on available for sale debt securities) amounted to $31.4 billion at March 31, 2025 and $30.9 billion at December 31, 2024, and consisted of 55% in loans and 33% in investment securities at March 31, 2025.
+Added: During the first quarter of 2025, average loans totaled $17.2 billion, an increase of $173.0 million, or 1.0%, over the prior quarter, and an increase of $162.6 million over the same quarter last year.
+Added: Compared to the previous quarter, average balances of business loans and business real estate loans grew $143.0 million and $31.8 million, respectively.
+Added: During the current quarter, the Company sold certain fixed rate personal real estate loans totaling $14.9 million, compared to $21.9 million in the prior quarter.
+Added: Total average available for sale debt securities increased $66.1 million over the previous quarter to $9.2 billion, at fair value.
+Added: The increase in available for sale debt securities was mainly the result of higher average balances of U.S.
+Added: government and federal agency obligations and other asset-backed securities, partly offset by lower average balances of mortgage-backed securities.
+Added: During the first quarter of 2025, the unrealized loss on available for sale debt securities decreased $157.7 million to $832.9 million, at period end.
+Added: Also, during the first quarter of 2025, purchases of available for sale debt securities totaled $507.7 million with a weighted average yield of approximately 4.74%, and maturities and pay downs of available for sale debt securities were $542.3 million.
+Added: At March 31, 2025, the duration of the available for sale investment portfolio was 4.1 years, and maturities and pay downs of approximately $1.4 billion are expected to occur during the next 12 months.
+Added: Total average deposits decreased $83.7 million this quarter compared to the previous quarter.
+Added: The decrease in deposits mostly resulted from declines of $165.6 million and $158.2 million in average balances of demand deposits and certificates of deposit, respectively, partly offset by higher interest checking and money market deposit average balances of $227.2 million.
+Added: Compared to the previous quarter, total average commercial deposits declined $264.7 million, while wealth and consumer average deposits grew $145.7 million and $82.2 million, respectively.
+Added: The average loans to deposits ratio was 69.4% in the
+Added: current quarter and 68.5% in the prior quarter.
+Added: The Company’s average borrowings, which included average customer repurchase agreements of $2.7 billion, increased $283.4 million to $2.9 billion at March 31, 2025.
Liquidity and Capital Resources
Liquidity Management
−Removed: The Company’s most liquid assets include balances at the Federal Reserve Bank, federal funds sold, available for sale debt securities, and securities purchased under agreements to resell (resale agreements), as follows:
+Added: The Company’s most liquid assets include balances at the Federal Reserve Bank, federal funds sold, and available for sale debt securities, as follows:
(In thousands)
−Removed: September 30, 2024 September 30, 2023 December 31, 2023
+Added: March 31, 2025 March 31, 2024 December 31, 2024
Liquid assets:
2 unchanged sentences
Available for sale debt securities 9,264,947 9,141,695 9,136,853
−Removed: Securities purchased under agreements to resell 475,000 450,000 450,000
Total $ 12,021,468 $ 10,976,309 $ 11,764,406
−Removed: Interest earning balances at the Federal Reserve Bank, which have overnight maturities and are used for general liquidity purposes, totaled $2.6 billion at September 30, 2024 and increased $403.0 million from December 31, 2023.
−Removed: Federal funds sold, which are funds lent to the Company's correspondent bank customers with overnight maturities, totaled $10 thousand as of September 30, 2024.
−Removed: The fair value of the available for sale debt portfolio was $9.2 billion at September 30, 2024 and included an unrealized net loss of $786.4 million.
+Added: Interest earning balances at the Federal Reserve Bank, which have overnight maturities and are used for general liquidity purposes, totaled $2.8 billion at March 31, 2025 and increased $132.0 million from December 31, 2024.
+Added: At March 31, 2025, the Company did not have a balance of federal funds sold, which are funds lent to the Company's correspondent bank customers with overnight maturities.
+Added: The fair value of the available for sale debt portfolio was $9.3 billion at March 31, 2025 and included an unrealized net loss of $832.9 million.
The total net unrealized loss included net losses of $743.8 million on mortgage-backed and asset-backed securities and $68.4 million on state and municipal obligations.
−Removed: Resale agreements totaled $475.0 million at September 30, 2024, with $125.0 million to mature in the next 12 months and the remaining amount to mature through 2029.
−Removed: Under these agreements, the Company lends funds to upstream financial institutions and holds marketable securities, safe-kept by a third-party custodian, as collateral.
−Removed: This collateral totaled $502.0 million in fair value at September 30, 2024.
−Removed: The Company's available for sale debt securities portfolio has a diverse mix of high quality and liquid investment securities with a duration of 4.0 years at September 30, 2024.
+Added: The Company's available for sale debt securities portfolio has a diverse mix of high quality and liquid investment securities with a duration of 4.1 years at March 31, 2025.
Approximately $1.4 billion of the Company's available for sale debt portfolio is expected to mature or pay down during the next 12 months, and these funds offer substantial resources to meet either new loan demand or offset potential reductions in the Company's deposit funding base.
2 unchanged sentences
(In thousands)
−Removed: September 30, 2024 September 30, 2023 December 31, 2023
+Added: March 31, 2025 March 31, 2024 December 31, 2024
Investment securities pledged for the purpose of securing:
7 unchanged sentences
Total available for sale debt securities, at fair value $ 9,264,947 $ 9,141,695 $ 9,136,853
−Removed: * Includes securities pledged for collateral swaps outstanding at September 30, 2023.
−Removed: The average loans to deposits ratio is a measure of a bank's liquidity, and the Company’s average loans to deposits ratio was 70.2% for the nine months ended September 30, 2024.
−Removed: Core customer deposits, defined as non-interest bearing, interest checking, savings, and money market deposit accounts totaled $22.6 billion and represented 89.6% of the Company's total deposits at September 30, 2024.
+Added: * Includes securities pledged for collateral swaps outstanding at each period end shown in the table.
+Added: The average loans to deposits ratio is a measure of a bank's liquidity, and the Company’s average loans to deposits ratio was 69.4% for the three months ended March 31, 2025.
+Added: Core customer deposits, defined as non-interest bearing, interest checking, savings, and money market deposit accounts totaled $23.5 billion and represented 90.9% of the Company's total deposits at March 31, 2025.
These core deposits are normally less volatile, as they are often with customer relationships tied to other products offered by the Company, promoting long lasting relationships and stable funding sources.
−Removed: Core deposits increased $124.5 million at September 30, 2024 compared to December 31, 2023, primarily due to an increase in commercial deposits of $675.9 million, partly offset by decreases in consumer and wealth deposits of $286.1 million and $197.4 million, respectively.
+Added: Core deposits increased $588.3 million at March 31, 2025 compared to December 31, 2024, primarily due to increases in commercial and consumer deposits of $327.7 million and $149.6 million, respectively.
While the Company considers core consumer and wealth management deposits less volatile, corporate deposits could decline if interest rates increase significantly, encouraging corporate customers to increase investing activities, or if the economy deteriorates and companies experience lower cash inflows, reducing deposit balances.
1 unchanged sentence
In addition, as shown in the table of collateral available for future advances below, the Company has borrowing capacity of $6.1 billion through advances from the FHLB and the Federal Reserve.
−Removed: Certificates of deposit of $100,000 or greater totaled $1.5 billion at September 30, 2024.
−Removed: These deposits are normally considered more volatile and higher costing, and comprised 6.0% of total deposits at September 30, 2024.
+Added: The Company also holds securities sold under agreements to repurchase ("resale agreements") which are an additional source of liquidity.
+Added: At March 31, 2025, the Company's resale agreements totaled $850.0 million and mature from 2028 through 2030.
+Added: Under these agreements, the Company lends funds to upstream financial institutions and holds marketable securities, safe-kept by a third-party custodian, as collateral.
+Added: This collateral totaled $875.2 million in fair value at March 31, 2025.
+Added: Certificates of deposit of $100,000 or greater totaled $1.4 billion at March 31, 2025.
+Added: These deposits are normally considered more volatile and higher costing, and comprised 5.3% of total deposits at March 31, 2025.
(In thousands)
−Removed: September 30, 2024 September 30, 2023 December 31, 2023
+Added: March 31, 2025 March 31, 2024 December 31, 2024
Core deposit base:
3 unchanged sentences
Total $ 23,493,526 $ 21,976,675 $ 22,905,240
−Removed: Amid the banking sector's period of uncertainty during the second quarter of 2023, the Company issued several tranches of short-term brokered certificates of deposit totaling $1.2 billion, which all matured by December 31, 2023.
−Removed: During the third quarter of 2024, the Company issued $100.0 million of brokered certificates of deposit that mature in three months.
+Added: During the third quarter of 2024, the Company issued $100.0 million of short-term brokered certificates of deposit, which all matured by December 31, 2024.
The Company may occasionally issue brokered certificates of deposit to test the reliability of this potential funding source.
3 unchanged sentences
(In thousands)
−Removed: September 30, 2024 September 30, 2023 December 31, 2023
+Added: March 31, 2025 March 31, 2024 December 31, 2024
Federal funds purchased $ 132,370 $ 264,470 $ 123,715
Securities sold under agreements to repurchase 2,267,666 2,241,106 2,803,043
−Removed: FHLB advances — 500,000 —
Other debt 17,743 2,359 56
Total $ 2,417,779 $ 2,507,935 $ 2,926,814
−Removed: Federal funds purchased, which totaled $113.6 million at September 30, 2024, are unsecured overnight borrowings obtained mainly from upstream correspondent banks with which the Company maintains approved lines of credit.
−Removed: At September 30, 2024, the Company had approved lines of credit totaling $3.7 billion.
+Added: Federal funds purchased, which totaled $132.4 million at March 31, 2025, are unsecured overnight borrowings obtained mainly from upstream correspondent banks with which the Company maintains approved lines of credit.
+Added: At March 31, 2025, the Company had approved lines of credit totaling $4.1 billion.
Since these borrowings are unsecured and limited by market trading activity, their availability may be less certain than collateralized sources of borrowings.
1 unchanged sentence
Repurchase agreements are collateralized by securities in the Company's investment portfolio.
−Removed: Total repurchase agreements at September 30, 2024 were comprised of non-insured customer funds totaling $2.1 billion, and securities pledged as collateral for these retail agreements totaled $2.1 billion at September 30, 2024.
+Added: Total repurchase agreements at March 31, 2025 were comprised of non-insured customer funds totaling $2.3 billion, and securities pledged as collateral for these retail agreements totaled $2.3 billion at March 31, 2025.
The Company also borrows on a secured basis through advances from the FHLB.
The advances are generally short-term, fixed interest rate borrowings.
−Removed: There were no advances outstanding from the FHLB at September 30, 2024.
+Added: There were no advances outstanding from the FHLB at March 31, 2025.
The Company pledges certain assets, including loans and investment securities, to both the FRB and the FHLB as security to establish lines of credit and borrow from these entities.
2 unchanged sentences
The FRB also establishes a collateral value of assets pledged and permits borrowings from the discount window.
−Removed: The following table reflects the collateral value of assets pledged, borrowings, and letters of credit outstanding, in addition to the estimated future funding capacity available to the Company at September 30, 2024.
−Removed: September 30, 2024
+Added: The following table reflects the collateral value of assets pledged, borrowings, and letters of credit outstanding, in addition to the estimated future funding capacity available to the Company at March 31, 2025.
+Added: March 31, 2025
(In thousands)
3 unchanged sentences
Available for future advances $ 3,231,651 $ 2,823,169 $ 6,054,820
−Removed: The Company receives outside ratings from both Standard & Poor’s and Moody’s on both the consolidated company and its subsidiary bank, Commerce Bank.
+Added: The Company receives outside ratings from both Standard & Poor’s and Moody’s on the consolidated company and its subsidiary bank, Commerce Bank.
These ratings are as follows:
12 unchanged sentences
Because of its lack of significant long-term debt, the Company believes that through its Commercial Tradable Products division or in other public debt markets, it could generate additional liquidity from sources such as jumbo certificates of deposit, privately placed corporate notes or other forms of debt.
−Removed: The cash flows from the operating, investing and financing activities of the Company resulted in a net increase in cash, cash equivalents and restricted cash of $462.8 million during the first nine months of 2024, as reported in the consolidated statements of cash flows in this report.
+Added: The cash flows from the operating, investing and financing activities of the Company resulted in a net decrease in cash, cash equivalents and restricted cash of $102.1 million during the first three months of 2025, as reported in the consolidated statements of cash flows in this report.
Operating activities, consisting mainly of net income adjusted for certain non-cash items, provided cash flow of $138.6 million and have historically been a stable source of funds.
−Removed: Investing activities, which occur mainly in the loan and investment securities portfolios, provided cash of $968.7 million.
−Removed: Activity in the investment securities portfolio provided cash of $930.8 million from sales, maturities, and pay downs (net of purchases).
−Removed: This increase in investing cash flows was further supported by shrinking in the loan portfolio, which provided cash of $86.1 million.
−Removed: These increases were partly offset by purchases of securities under agreements to resell (net of repayments), which used cash of $25.0 million.
+Added: Investing activities, which occur mainly in the loan and investment securities portfolios, used cash of $373.4 million.
+Added: Activity in the investment securities portfolio used cash of $225.0 million from purchases of securities under agreements to resell (net of repayments).
+Added: This decrease in investing cash flows was further supported by a net increase in the loan portfolio, which used cash of $170.6 million.
+Added: These uses of cash were partly balanced by sales, maturities, and pay downs (net of purchases) of investment securities, which provided cash of $34.6 million.
Investing activities are somewhat unique to financial institutions in that, while large sums of cash flow are normally used to fund growth in investment securities, loans, or other bank assets, they are normally dependent on the financing activities described below.
−Removed: Financing activities used cash of $1.2 billion, largely resulting from a net decrease of $726.6 million in federal funds purchased and securities sold under agreements to repurchase along with net decreases in deposits of $268.5 million during the first nine months of 2024.
+Added: Financing activities provided cash of $132.7 million, largely resulting from a net increase of $734.8 million in deposits during the first three months of 2025.
+Added: This increase was largely offset by federal funds purchases and securities sold under agreements to repurchase, which used cash of $526.7 million.
Additionally, purchases of treasury stock and cash dividends (including distributions to non-controlling interest) used cash of $55.2 million and $37.9 million, respectively.
Capital Management
−Removed: The Company met all capital adequacy requirements and had regulatory capital ratios in excess of the levels established for well-capitalized institutions at September 30, 2024 and December 31, 2023, as shown in the following table.
−Removed: (Dollars in thousands) September 30, 2024 December 31, 2023 Minimum Capital Requirement Capital Conservation Buffer Minimum Ratios Requirement including Capital Conservation Buffer
+Added: The Company met all capital adequacy requirements and had regulatory capital ratios in excess of the levels established for well-capitalized institutions at March 31, 2025 and December 31, 2024, as shown in the following table.
+Added: (Dollars in thousands) March 31, 2025 December 31, 2024 Minimum Capital Requirement Capital Conservation Buffer Minimum Ratios Requirement including Capital Conservation Buffer
Minimum Ratios
15 unchanged sentences
As a result, the two year deferral period for the Company extended through December 31, 2021.
−Removed: Beginning on January 1, 2022, the Company was required to phase in 25% of the previously deferred estimated capital impact of CECL, with an additional 25% to be phased in at the beginning of each subsequent year until fully phased in by the first quarter of 2025.
+Added: Beginning on January 1, 2022, the Company was required to phase in 25% of the previously deferred estimated capital impact of CECL, with an additional 25% to be phased in at the beginning of each subsequent year until fully phased in, which was during the first quarter of 2025.
The Company maintains a treasury stock buyback program under authorizations by its Board of Directors (the Board) and periodically purchases stock in the open market.
−Removed: In April 2024, the Board approved the purchase of additional shares, bringing the total shares authorized for purchase to 5,000,000 at April 17, 2024.
−Removed: During the nine months ended September 30, 2024, the Company purchased 2,191,821 shares at an average price of $56.37 in open market purchases and through stock-based compensation transactions.
−Removed: At September 30, 2024, 3,615,176 shares remained available for purchase under the current Board authorization.
+Added: During the three months ended March 31, 2025, the Company purchased 854,806 shares at an average price of $64.56 in open market purchases and through stock-based compensation transactions.
+Added: At March 31, 2025, 2,076,842 shares remained available for purchase under the current Board authorization.
The Company's common stock dividend policy reflects its earnings outlook, desired payout ratios, the need to maintain adequate capital levels and alternative investment options.
−Removed: The Company paid a $.270 per share cash dividend on its common stock in the third quarter of 2024, which was a 5.1% increase compared to its 2023 quarterly dividend.
+Added: The Company paid a $.275 per share cash dividend on its common stock in the first quarter of 2025, which was a 7.0% increase compared to its 2024 quarterly dividend.
Material Cash Requirements, Commitments, Off-Balance Sheet Arrangements and Contingencies
5 unchanged sentences
In the normal course of business, various commitments and contingent liabilities arise that are not required to be recorded on the balance sheet.
−Removed: The most significant of these are loan commitments, which at September 30, 2024 totaled $15.0 billion (including $5.8 billion in unused, approved credit card lines).
+Added: The most significant of these are loan commitments, which at March 31, 2025 totaled $15.9 billion (including $5.9 billion in unused, approved credit card lines).
In addition, the Company enters into standby and commercial letters of credit.
−Removed: The contractual amount of standby and commercial letters of credit totaled $614.6 million and $3.5 million, respectively, at September 30, 2024.
+Added: The contractual amount of standby and commercial letters of credit totaled $613.5 million and $2.0 million, respectively, at March 31, 2025.
As many commitments expire unused or only partially used, these totals do not necessarily reflect future cash requirements.
The allowance for these commitments is recorded in the Company’s liability for unfunded lending commitments within other liabilities on its consolidated balance sheets.
−Removed: At September 30, 2024, the liability for unfunded lending commitments totaled $18.0 million.
+Added: At March 31, 2025, the liability for unfunded
+Added: lending commitments totaled $18.3 million.
See further discussion of the liability for unfunded lending commitments in Note 2 to the consolidated financial statements.
1 unchanged sentence
These credits are either resold to third parties at a profit or retained for use by the Company.
−Removed: During the first nine months of 2024, purchases and sales of tax credits amounted to $89.8 million and $76.1 million, respectively.
−Removed: Fees from sales of tax credits were $3.5 million for the nine months ended September 30, 2024, compared to $3.0 million in the same period last year.
−Removed: At September 30, 2024, the Company expected to fund outstanding purchase commitments of $72.5 million during the remainder of 2024 and had purchase commitments of $495.2 million that it expects to fund from 2025 through 2030.
−Removed: The Company continued to maintain a strong liquidity position throughout the first nine months of 2024.
+Added: During the first three months of 2025, purchases and sales of tax credits amounted to $47.0 million and $49.8 million, respectively.
+Added: Fees from sales of tax credits were $1.9 million for the three months ended March 31, 2025, compared to $2.1 million in the same period last year.
+Added: At March 31, 2025, the Company expected to fund outstanding purchase commitments of $207.9 million during the remainder of 2025 and had purchase commitments of $334.0 million that it expects to fund from 2026 through 2029.
+Added: The Company continued to maintain a strong liquidity position throughout the first three months of 2025.
Through the various sources of liquidity described above, the Company maintains a liquidity position that it believes will adequately satisfy its financial obligations.
Segment Results
−Removed: The table below is a summary of segment pre-tax income results for the first nine months of 2024 and 2023.
+Added: The table below is a summary of segment pre-tax income results for the first three months of 2025 and 2024.
(Dollars in thousands)
1 unchanged sentence
Consolidated Totals
−Removed: Nine Months Ended September 30, 2024
+Added: Three Months Ended March 31, 2025
Net interest income $ 125,385 $ 133,115 $ 22,159 $ 280,659 $ (11,557) $ 269,102
4 unchanged sentences
Income before income taxes $ 55,317 $ 98,938 $ 44,919 $ 199,174 $ (31,577) $ 167,597
−Removed: Nine Months Ended September 30, 2023
+Added: Three Months Ended March 31, 2024
Net interest income $ 128,157 $ 126,687 $ 23,198 $ 278,042 $ (29,043) $ 248,999
7 unchanged sentences
Percent (12.0) % 9.8 % 6.8 % 2.1 % (34.1) % 13.9 %
−Removed: For the nine months ended September 30, 2024, income before income taxes for the Consumer segment decreased $48.0 million, or 20.6%, compared to the first nine months of 2023.
+Added: For the three months ended March 31, 2025, income before income taxes for the Consumer segment decreased $7.6 million, or 12.0%, compared to the first three months of 2024.
The decrease in income before income taxes was mainly due to a decline in net interest income of $2.8 million, or 2.2%, and increases in non-interest expense of $3.1 million, or 3.8%, and the provision for credit losses of $1.4 million.
−Removed: Net interest income declined mainly due to a $60.8 million increase in deposit interest expense.
−Removed: This decrease was partly offset by higher loan interest income of $18.1 million and a $6.3 million increase in net allocated funding credits assigned to the Consumer segment's loan and deposit portfolios.
−Removed: Non-interest income increased $1.8 million, or 2.4%, mainly due to higher net bank card fees (mainly credit and debit card fees), deposit account fees and mortgage banking revenue.
−Removed: Non-interest expense increased over the same period in the previous year mainly due to higher miscellaneous losses and allocated support costs for information technology and retail operations, partly offset by lower allocated management support costs.
−Removed: The increase in the provision for credit losses over the first nine months of 2023 was mainly due to higher consumer credit card and auto loan net charge-offs, partly offset by lower other vehicle and equipment loan net charge-offs.
−Removed: For the nine months ended September 30, 2024, income before income taxes for the Commercial segment decreased $4.9 million, or 1.7%, compared to the same period in the previous year.
−Removed: T his decrease was mainly due to lower net interest income and higher non-interest expense, partly offset by higher non-interest income and a decrease in the provision for credit losses.
−Removed: Net interest income decreased $5.9 million, or 1.5%, mainly due to lower net allocated funding credits of $27.4 million, coupled with higher interest expense on deposits and customer repurchase agreements of $28.3 million and $9.1 million, respectively.
−Removed: These decreases to income were partly offset by higher loan interest income of $58.4 million.
−Removed: Non-interest income increased $9.2 million, or 5.0%, over the previous year mainly due to growth in deposit account fees (mainly corporate cash management fees), capital market fees and loan commitment fees.
−Removed: These increases were partly offset by decreases in net bank card fees (mainly corporate card fees), letter of credit fees and swap fees.
−Removed: Non-interest expense increased $10.4 million, or 3.6%, mainly due to higher salaries and benefits expense and allocated servicing and support costs for commercial banking sales and administration, management and bank operations.
−Removed: These increases were partly offset by lower allocated commercial sales and payment support costs.
−Removed: The provision for credit losses declined $2.3 million from the same period last year, mainly due to lower commercial and industrial loan net charge-offs.
−Removed: Wealth segment pre-tax profitability for the nine months ended September 30, 2024 increased $7.3 million, or 6.0%, over the same period in the previous year.
−Removed: Net interest income decreased $10.4 million, or 13.6%, mainly due to a $19.2 million increase in deposit interest expense.
−Removed: This decrease was partly offset by an $8.0 million increase in loan interest income and an $852 thousand increase in net allocated funding credits.
−Removed: Non-interest income increased $17.0 million, or 10.4%, over the prior year largely due to higher private client and institutional trust fees and cash sweep commissions.
−Removed: Non-interest expense decreased $507 thousand, or .4%, mainly due to deconversion expense recorded in the prior year, partly offset by higher salaries and benefits expense.
−Removed: The provision for credit losses decreased $164 thousand from the same period last year due to lower revolving home equity loan net charge-offs.
+Added: Net interest income declined mainly due to a $3.8 million decrease in net allocated funding credits assigned to the Consumer segment's loan and deposit portfolios.
+Added: This decrease was partly offset by lower deposit interest expense of $870 thousand.
+Added: Non-interest income decreased $348 thousand, or 1.4%, mainly due to lower net bank card fees (mainly credit and debit card fees).
+Added: Non-interest expense increased over the same period in the previous year mainly due to higher marketing expense, miscellaneous losses, supplies expense, and allocated support costs for marketing and retail administration and operations.
+Added: These increases were partly offset by lower FDIC insurance expense and allocated support costs for online banking and information technology.
+Added: The increase in the provision for credit losses over the first three months of 2024 was mainly due to higher auto and consumer credit card loan net charge-offs.
+Added: For the three months ended March 31, 2025, income before income taxes for the Commercial segment increased $8.8 million, or 9.8%, compared to the same period in the previous year.
+Added: T his increase was mainly due to higher net interest income and non-interest income, partly offset by higher non-interest expense and an increase in the provision for credit losses.
+Added: Net interest income increased $6.4 million, or 5.1%, mainly due to higher net allocated funding credits of $8.0 million, coupled with
+Added: lower interest expense on deposits and borrowings of $7.5 million and $2.1 million, respectively.
+Added: These increases to income were partly offset by lower loan interest income of $11.7 million.
+Added: Non-interest income increased $5.8 million, or 9.1%, over the previous year mainly due to growth in deposit account fees (mainly corporate cash management fees), capital market fees (mainly underwriting and trading securities) and higher gains on asset sales.
+Added: These increases were partly offset by a decrease in net bank card fees (mainly corporate card fees).
+Added: Non-interest expense increased $2.9 million, or 2.9%, mainly due to higher marketing expense, professional and other services expense and higher allocated support costs for bank operations and branch employee expense.
+Added: The provision for credit losses increased $491 thousand over the same period last year, mainly due to higher business real estate loan net charge-offs.
+Added: Wealth segment pre-tax profitability for the three months ended March 31, 2025 increased $2.9 million, or 6.8%, over the same period in the previous year.
+Added: Net interest income decreased $1.0 million, or 4.5%, mainly due to a $2.9 million decrease in net allocated funding credits.
+Added: This decrease was partly offset by a $1.1 million increase in loan interest income and an $822 thousand decrease deposit interest expense.
+Added: Non-interest income increased $5.6 million, or 9.7%, over the prior year largely due to higher private client and institutional trust fees and brokerage fees (mainly advisory fees).
+Added: Non-interest expense increased $1.7 million, or 4.4%, mainly due to higher salaries and benefits expense and marketing expense.
+Added: The provision for credit losses increased $1 thousand over the same period last year.
The Other/Elimination category in the preceding table includes the activity of various support and overhead operating units of the Company, in addition to the investment securities portfolio and other items not allocated to the segments.
1 unchanged sentence
The pre-tax profitability in this category was $16.3 million higher than in the same period last year.
−Removed: Unallocated securities gains were $6.8 million in the first nine months of 2024 compared to gains of $7.4 million in 2023.
−Removed: Also, the unallocated provision for credit losses decreased $15.4 million, primarily driven by decreases in the provision for credit losses on loans and the liability for unfunded lending commitments, which are both not allocated to the segments for management reporting purposes.
+Added: Unallocated securities losses were $7.6 million in the first three months of 2025 compared to losses of $259 thousand in 2024.
+Added: Also, the unallocated provision for credit losses increased $7.8 million, primarily driven by an increase in the provision for credit losses on loans, partly offset by a decrease in the liability for unfunded lending commitments, which are both not allocated to the segments for management reporting purposes.
Net charge-offs are allocated to the segment s when incurred for management reporting purposes.
−Removed: The provision for credit losses on loans in the first nine months of 2024 was $26.7 million, or $1.6 million lower than net charge-offs, due to a decrease in the allowance for credit losses on loans.
−Removed: In the comparable period last year, the provision for credit losses on loans was $35.2 million, or $12.1 million higher than net charge-offs, due to an increase in the allowance for credit losses on loans.
−Removed: For th e nine months ended September 30, 2024, the Company's provision on unfunded lending commitments was a benefit of $7.3 million.
−Removed: Additionally, net interest income increased $76.9 million and non-interest income increased $3.9 million.
−Removed: The increase in net interest income was driven by decreases in interest expense on borrowings and deposits of $44.2 million and $15.4 million, respectively, and a $20.2 million decrease in net allocated funding credits.
−Removed: These increases to pre-tax profitability were partly offset by higher non-interest expense of $20.4 million.
−Removed: Regulatory Changes
−Removed: Deposit Insurance
−Removed: On November 16, 2023, Federal Deposit Insurance Corporation (“FDIC”) issued a final rule to impose a special assessment to recover losses to the FDIC’s Deposit Insurance Fund following the failure of two financial institutions.
−Removed: The rule applies to all insured depository institutions and states that the special assessment would be collected at an annual rate of approximately 13.4 basis points for an anticipated total of eight quarterly assessment periods.
−Removed: Because the estimated loss pursuant to the systemic risk determination will be periodically adjusted, the FDIC could:
−Removed: • Cease collection early, if it has collected enough to recover actual or estimated losses;
−Removed: • Extend the special assessment collection period one or more quarters beyond the initial eight-quarter collection period, if actual or estimated losses exceed the amounts collected;
−Removed: • Impose a final shortfall special assessment on a one-time basis after the receiverships for certain failed banks terminate, if actual losses exceed the amounts collected.
−Removed: During the first quarter of 2024, the FDIC increased its estimate of losses to the Deposit Insurance Fund and in turn increased its estimated special assessment, announcing that the special assessment would come in the form of a June 2024 invoice based on its March 31, 2024 estimate loss in the Deposit Insurance Fund.
−Removed: The Company paid $2.0 million towards the special assessment in both June and September 2024 and has an accrual of $14.3 million at September 30, 2024 for FDIC special assessment liabilities.
−Removed: SEC Climate Disclosure Rule
−Removed: On March 6, 2024, the Securities and Exchange Commission adopted rules to enhance and standardize climate-related disclosures by public companies and in public offerings.
−Removed: This climate-related disclosure rule will have significant disclosure impact to the public companies affected, including the Company.
−Removed: Among many other items, this rule requires companies to disclose:
−Removed: • Climate-related risks that have had or are reasonably likely to have a material impact on the registrant’s business strategy, results of operations, or financial condition;
−Removed: • The actual and potential material impacts of any identified climate-related risks on the registrant’s strategy, business model, and outlook;
−Removed: • If, as part of its strategy, a registrant has undertaken activities to mitigate or adapt to a material climate-related risk, a quantitative and qualitative description of material expenditures incurred and material impacts on financial estimates and assumptions that directly result from such mitigation or adaptation activities;
−Removed: • Specified disclosures regarding a registrant’s activities, if any, to mitigate or adapt to a material climate-related risk including the use, if any, of transition plans, scenario analysis, or internal carbon prices;
−Removed: • Scope 1 and Scope 2 greenhouse gas (GHG) emissions, when material;
−Removed: • Capitalized costs, expenditures, charges, and losses incurred as a result of severe weather events or other natural conditions.
−Removed: However, in April 2024, the SEC issued an order to stay the rules pending judicial review, due to legal challenges to this mandate.
−Removed: The SEC has not issued an update since April 2024.
+Added: The provision for credit losses on loans in the first three months of 2025 was $15.1 million, or $4.3 million higher than net charge-offs, due to an increase in the allowance for credit losses on loans.
+Added: In the comparable period last year, the provision for credit losses on loans was $6.9 million, or $1.9 million lower than net charge-offs, due to a decrease in the allowance for credit losses on loans.
+Added: For th e three months ended March 31, 2025, the Company's provision on unfunded lending commitments was a benefit of $608 thousand.
+Added: Additionally, net interest income increased $17.5 million, while non-interest expense decreased $15.0 million.
+Added: These increases to pre-tax profitability were slightly offset by lower non-interest income of $988 thousand.
Impact of Recently Issued Accounting Standards
−Removed: Segment Reporting The FASB issued ASU 2023-07, "Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures", in November 2023.
−Removed: The amendments require disclosure of significant segment expenses and other segment items on an annual and interim basis.
−Removed: Public entities are required to disclose significant expense categories and amounts for each reportable segment, as well as the amount and a description of the composition of other segment items.
−Removed: Significant expense categories are derived from expenses that are regularly provided to an entity’s chief operating decision-maker (“CODM”), and included in a segment’s reported measures of profit or loss.
−Removed: Public entities are also required to disclose the title and position of the CODM and explain how the CODM uses the reported measures of profit or loss in assessing segment performance and deciding how to allocate resources.
−Removed: This Update requires interim disclosures of certain segment-related disclosures that previously were only required annually.
−Removed: This Update requires annual disclosures for fiscal years beginning January 1, 2024 and interim disclosures for fiscal years beginning January 1, 2025.
−Removed: Early adoption is permitted.
−Removed: The Company is required to apply the amendments in this Update retrospectively to all prior periods presented in the financial statements.
−Removed: Other than the inclusion of additional disclosures, the adoption of this ASU is not expected to have a significant effect on the Company's consolidated financial statements.
Income Taxes The FASB issued ASU 2023-09, "Income Taxes (Topic 740) - Improvements to Income Tax Disclosures", in December 2023.
5 unchanged sentences
Other than the inclusion of additional disclosures, the adoption is not expected to have a significant effect on the Company's consolidated financial statements.
−Removed: AVERAGE BALANCE SHEETS — AVERAGE RATES AND YIELDS
−Removed: Three Months Ended September 30, 2024 and 2023
−Removed: Third Quarter 2024
−Removed: Third Quarter 2023
−Removed: (Dollars in thousands)
−Removed: Average Balance
−Removed: Interest Income/Expense
−Removed: Rates Earned/Paid
−Removed: Average Balance Interest Income/Expense Avg.
−Removed: Rates Earned/Paid
−Removed: $ 5,966,797 $ 92,471 6.17 % $ 5,849,227 $ 85,104 5.77 %
−Removed: Real estate — construction and land 1,400,563 29,704 8.44 1,508,850 31,070 8.17
−Removed: Real estate — business 3,580,772 56,528 6.28 3,642,010 56,236 6.13
−Removed: Real estate — personal 3,047,563 31,402 4.10 2,992,500 28,126 3.73
−Removed: Consumer 2,129,483 35,519 6.64 2,102,281 31,630 5.97
−Removed: Revolving home equity 335,817 6,490 7.69 304,055 5,947 7.76
−Removed: Consumer credit card 559,410 19,697 14.01 564,039 19,570 13.77
−Removed: Overdrafts 5,460 — — 5,341 — —
−Removed: Total loans 17,025,865 271,811 6.35 16,968,303 257,683 6.02
−Removed: Loans held for sale 2,448 39 6.34 5,714 152 10.55
−Removed: Investment securities:
−Removed: government and federal agency obligations 1,888,985 17,478 3.68 986,284 5,750 2.31
−Removed: Government-sponsored enterprise obligations 55,583 331 2.37 55,676 331 2.36
−Removed: State and municipal obligations (A)
−Removed: 856,620 4,317 2.00 1,391,541 6,823 1.95
−Removed: Mortgage-backed securities 5,082,091 24,956 1.95 6,161,348 31,942 2.06
−Removed: Asset-backed securities 1,525,593 10,188 2.66 2,553,562 14,129 2.20
−Removed: Other debt securities 224,528 1,166 2.07 514,787 2,268 1.75
−Removed: Trading debt securities (A)
−Removed: 47,440 539 4.52 35,044 451 5.11
−Removed: Equity securities (A)
−Removed: 85,118 951 4.44 12,230 711 23.06
−Removed: Other securities (A)
−Removed: 217,377 3,330 6.09 237,518 7,859 13.13
−Removed: Total investment securities 9,983,335 63,256 2.52 11,947,990 70,264 2.33
−Removed: Federal funds sold 12 — — 2,722 45 6.56
−Removed: Securities purchased under agreements to resell 474,997 4,215 3.53 712,472 3,740 2.08
−Removed: Interest earning deposits with banks 2,565,188 35,034 5.43 2,337,744 31,738 5.39
−Removed: Total interest earning assets 30,051,845 374,355 4.96 31,974,945 363,622 4.51
−Removed: Allowance for credit losses on loans (158,003) (158,335)
−Removed: Unrealized gain (loss) on debt securities (961,695) (1,458,141)
−Removed: Cash and due from banks 361,854 295,711
−Removed: Premises and equipment, net 481,301 463,828
−Removed: Other assets 805,166 990,683
−Removed: Total assets $ 30,580,468 $ 32,108,691
−Removed: LIABILITIES AND EQUITY:
−Removed: Interest bearing deposits:
−Removed: Savings $ 1,303,675 214 .07 $ 1,436,149 194 .05
−Removed: Interest checking and money market 13,242,398 57,963 1.74 13,048,199 43,601 1.33
−Removed: Certificates of deposit of less than $100,000 1,055,683 11,073 4.17 1,423,965 15,499 4.32
−Removed: Certificates of deposit of $100,000 and over 1,464,143 16,603 4.51 1,718,126 18,942 4.37
−Removed: Total interest bearing deposits 17,065,899 85,853 2.00 17,626,439 78,236 1.76
−Removed: Federal funds purchased $ 206,644 $ 2,792 5.38 508,851 $ 6,833 5.33
−Removed: Securities sold under agreements to repurchase 2,351,870 21,066 3.56 2,283,020 18,431 3.20
−Removed: Other borrowings (B)
−Removed: 496 6 4.81 685,222 9,160 5.30
−Removed: Total borrowings 2,559,010 23,864 3.71 3,477,093 34,424 3.93
−Removed: Total interest bearing liabilities 19,624,909 109,717 2.22 % 21,103,532 112,660 2.12 %
−Removed: Non-interest bearing deposits 7,284,834 7,939,190
−Removed: Other liabilities 405,490 367,741
−Removed: Equity 3,265,235 2,698,228
−Removed: Total liabilities and equity $ 30,580,468 $ 32,108,691
−Removed: Net interest margin (FTE) $ 264,638 $ 250,962
−Removed: Net yield on interest earning assets 3.50 % 3.11 %
−Removed: (A) Stated on a fully taxable-equivalent basis using a federal income tax rate of 21%.
−Removed: (B) Interest expense capitalized on construction projects is not deducted from the interest expense shown above.
+Added: Income Statement Reporting The FASB issued ASU 2024-03, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40):
+Added: Disaggregation of Income Statement Expenses" in November 2024.
+Added: The amendments in this Update require new disclosures providing further detail of a company's income statement expense items.
+Added: This Update is effective for annual periods beginning January 1, 2027, and interim periods beginning January 1, 2028.
+Added: Early adoption is permitted.
+Added: The amendments in this Update should be applied on a prospective basis.
+Added: Other than the inclusion of additional disclosures, the adoption is not expected to have a significant effect on the Company's consolidated financial statements.
AVERAGE BALANCE SHEETS — AVERAGE RATES AND YIELDS
−Removed: Nine Months Ended September 30, 2024 and 2023
−Removed: Nine Months 2024
−Removed: Nine Months 2023
+Added: Three Months Ended March 31, 2025 and 2024
+Added: First Quarter 2025
+Added: First Quarter 2024
(Dollars in thousands)
59 unchanged sentences
(A) Stated on a fully taxable-equivalent basis using a federal income tax rate of 21%.
−Removed: (B) Interest expense capitalized on construction projects is not deducted from the interest expense shown above.
+Added: (B) Interest expense capitalized on construction projects in 2024 is not deducted from the interest expense shown above.
+Added: There was no interest expense capitalized in 2025.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.