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 months ended March 31, 2025 are not necessarily indicative of results to be attained for any other period.
+Added: Results of operations for the three and six months ended June 30, 2025 are not necessarily indicative of results to be attained for any other period.
+Added: Pending Acquisition
+Added: On June 16, 2025, the Company and FineMark Holdings, Inc.
+Added: ("FineMark") announced they entered into a definitive merger agreement ("Merger Agreement") in which the Company will acquire all outstanding shares of FineMark in an all-stock transaction ("Merger").
+Added: Immediately after the merger, FineMark's wholly-owned subsidiary, FineMark National Bank & Trust will merge into the Bank ("Bank Merger").
+Added: FineMark is headquartered in Fort Meyers, Florida and has 13 banking offices in Florida, Arizona, and South Carolina.
+Added: As of June 30, 2025, FineMark disclosed that it had total assets of $3.9 billion (including $2.6 billion in loans), $3.5 billion of total liabilities (including $3.1 billion in deposits), and $373 million of total shareholders' equity.
+Added: Under the terms of the agreement, the shareholders of FineMark will receive a fixed exchange ratio of .690 shares of Company common stock for each share of FineMark common stock.
+Added: The transaction is valued at approximately $585 million (with the price based on the closing price of the Company's common shares as of June 13, 2025, the last trading day before the public announcement of the merger).
+Added: The transaction remains subject to regulatory approval, approval of FineMark shareholders and other customary closing conditions.
+Added: Pending these approvals, the transaction is anticipated to close on January 1, 2026.
+Added: In connection with the acquisition, the Company incurred merger-related expenses consisting predominantly of professional services for investment banking, legal, and other services associated with the pending transaction that totaled $1.9 million in the second quarter of 2025.
Forward-Looking Information
9 unchanged sentences
Such possible events or factors include:
−Removed: 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 March 31, 2025, there were no material changes to the Risk Factors disclosed in the Company's 2024 Annual Report on Form 10-K.
+Added: changes in economic conditions in the Company's market area;
+Added: changes in policies by regulatory agencies;
+Added: governmental legislation and regulation;
+Added: fluctuations in interest rates;
+Added: changes in liquidity requirements;
+Added: demand for loans in the Company's market area;
+Added: changes in accounting and tax principles, estimates made on income taxes, competition with other entities that offer financial services, cybersecurity threats;
+Added: risks related to the proposed Merger with FineMark including, among others, (i) failure to complete the Merger or unexpected delays related to the merger or either party’s inability to satisfy closing conditions required to complete the Merger, (ii) certain restrictions during the pendency of the proposed Merger that may impact the parties’ ability to pursue certain business opportunities or strategic transactions, (iii) diversion of management’s attention from ongoing business operations and opportunities, (iv) cost savings and any revenue synergies from the Merger may not be fully realized or may take longer than anticipated to be realized, (v) deposits attrition, customer or employee loss and/or revenue loss as a result of the proposed Merger, and (vi) expenses related to the proposed Merger being greater than expected;
+Added: 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 and Part II, Item 1A.
+Added: - "Risk Factors" in this report.
Critical Accounting Estimates and Related Policies
The Company has identified certain policies as being critical because they require management to make particularly difficult, subjective and/or complex judgments about matters that are inherently uncertain and because of the likelihood that materially different amounts would be reported under different conditions or using different assumptions.
−Removed: These estimates and related policies are the Company's allowance for credit losses and fair value measurement policies.
+Added: These estimates and
+Added: related policies are the Company's allowance for credit losses and fair value measurement policies.
A discussion of these estimates and related policies can be found in the sections captioned "Critical Accounting Policies" and "Allowance for Credit Losses on Loans and Liability for Unfunded Lending Commitments" in Management's Discussion and Analysis of Financial Condition and Results of Operations included in the Company's 2024 Annual Report on Form 10-K.
1 unchanged sentence
Selected Financial Data
−Removed: Three Months Ended March 31
+Added: Three Months Ended June 30 Six Months Ended June 30
+Added: 2025 2024 2025 2024
Per Share Data
10 unchanged sentences
Equity to loans (1)
+Added: 20.09 17.64 19.83 17.44
Equity to deposits 14.11 12.48 13.84 12.26
4 unchanged sentences
Non-interest income to revenue (2)
+Added: 37.15 36.73 37.14 37.06
Efficiency ratio (3)
+Added: 54.77 55.95 55.18 58.75
Tier I common risk-based capital ratio 17.17 16.19
24 unchanged sentences
Results of Operations
−Removed: Three Months Ended March 31 Increase (Decrease)
−Removed: (Dollars in thousands) 2025 2024 Amount % change
+Added: Three Months Ended June 30 Six Months Ended June 30
+Added: (Dollars in thousands) 2025 2024 % change 2025 2024 % change
Net interest income (expense) $ 280,147 $ 262,249 6.8 % $ 549,249 $ 511,248 7.4 %
4 unchanged sentences
Income taxes (42,400) (38,602) 9.8 (79,364) (70,254) 13.0
−Removed: Non-controlling interest income (expense) 959 (2,789) (3,748) N.M.
+Added: Non-controlling interest income (expense) (1,284) (1,889) (32.0) (325) (4,678) (93.1)
Net income attributable to Commerce Bancshares, Inc.
$ 152,479 $ 139,553 9.3 % $ 284,071 $ 252,216 12.6 %
−Removed: For the quarter ended March 31, 2025, net income attributable to Commerce Bancshares, Inc.
−Removed: (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.
+Added: For the quarter ended June 30, 2025, net income attributable to Commerce Bancshares, Inc.
+Added: (net income) amounted to $152.5 million, an increase of $12.9 million, or 9.3%, compared to the second quarter of the previous year.
For the current quarter, the annualized return on average assets was 1.95%, the annualized return on average equity was 17.40%, and the efficiency ratio was 54.77%.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
+Added: Diluted earnings per common share was $1.14 per share in the current quarter, an increase of 10.7% compared to $1.03 per share in the second quarter of 2024, and increased 16.3% compared to $0.98 per share in the previous quarter.
+Added: Compared to the second quarter of last year, net interest income increased $17.9 million, or 6.8%, mainly due to increases in interest income on investment securities and securities purchased under agreements to resell ("resale agreements") of $9.2 million and $6.1 million, respectively, partly offset by a decrease in interest income on loans of $7.0 million.
+Added: Interest expense on deposits and interest expense on borrowings also decreased $11.0 million and $4.6 million, respectively.
+Added: The provision for credit losses increased $129 thousand, or 2.4%, compared to the same quarter in the prior year.
+Added: Non-interest income increased $13.4 million, or 8.8%, compared to the second quarter of 2024, mainly due to increases in trust fees and capital market fees of $3.3 million and $1.4 million, respectively, along with $5.5 million in gains on the sale of assets.
+Added: Net gains on investment securities totaled $437 thousand in the current quarter compared to net gains of $3.2 million in the same quarter of last year.
+Added: Securities gains in the current quarter primarily resulted from net gains in fair value of $4.4 million recorded on private equity investments which were partly offset by net losses of $4.2 million on sales of available for sale debt securities.
+Added: Non-interest expense increased $12.2 million, or 5.3%, over the second quarter of 2024, mainly due to higher salaries expense, professional and other services expense, and data processing and software expense, partly offset by a non-recurring charitable donation made during the prior year.
+Added: Net income for the first six months of 2025 totaled $284.1 million, an increase of $31.9 million, or 12.6% from the same period last year.
+Added: Diluted earnings per common share was $2.12, an increase of 14.6% compared to $1.85 per share in the same period last year.
+Added: For the first six months of 2025, the annualized return on average assets was 1.82%, the annualized return on average equity was 16.63% and the efficiency ratio was 55.18%.
+Added: Net interest income increased $38.0 million, or 7.4%, over the same period last year.
+Added: This growth was largely due to an increase in interest income on investment securities and securities purchased under agreements to resell ("resale agreements") of $19.7 million and $11.9 million, respectively, partly offset by a decline in interest income on loans of $17.5 million.
+Added: Interest expense on deposits and interest expense on borrowings also decreased $20.3 million and $9.8 million, respectively, over the same period last year.
+Added: The provision for credit losses was $20.1 million for the first six months of 2025, compared to a provision of $10.3 million in the same period last year.
+Added: Non-interest income increased $23.5 million, or 7.8%, from the first six months of last year largely due to increases in trust fees, deposit fees, and capital market fees.
+Added: Non-interest expense increased $4.9 million, or 1.0%, over the first six months of last year mainly due to increases in salaries and benefits expense and professional and other services expense, partly offset by non-recurring litigation settlement expense during the prior year.
Net Interest Income
2 unchanged sentences
Analysis of Changes in Net Interest Income
−Removed: Three Months Ended March 31, 2025 vs.
−Removed: Change due to
+Added: Three Months Ended June 30, 2025 vs.
+Added: 2024 Six Months Ended June 30, 2025 vs.
+Added: Change due to Change due to
(In thousands) Average
Volume Average
+Added: Total Average
+Added: Volume Average
Interest income, fully taxable equivalent basis:
32 unchanged sentences
Net interest income, fully taxable-equivalent basis $ 15,129 $ 2,721 $ 17,850 $ 24,636 $ 13,318 $ 37,954
−Removed: 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.
−Removed: 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.
+Added: Net interest income in the second quarter of 2025 was $280.1 million, an increase of $17.9 million over the second quarter of 2024.
+Added: On a fully taxable-equivalent (FTE) basis, net interest income totaled $282.4 million in the second quarter of 2025, up $17.9 million over the same period last year and up $11.0 million over the previous quarter.
The increase in net interest income
−Removed: 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.
−Removed: 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.
−Removed: Interest income on loans (FTE) decreased mainly due to lower average rates earned, partly offset by higher average business loan balances.
−Removed: 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.
−Removed: Total interest income (FTE) increased $5.6 million over the first quarter of 2024.
−Removed: 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.
−Removed: 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: compared to the second quarter of 2024 was mainly due to higher interest income earned on investment securities (FTE) of $9.2 million and lower deposit interest expense of $11.1 million, partly offset by lower interest income earned on loans (FTE) of $7.0 million.
+Added: The increase in total interest earned on investment securities (FTE) was mainly the result of higher average balances of U.S.
+Added: government and federal agency securities, while the decrease in deposit interest expense was due to lower average rates paid, partly offset by higher average balances.
+Added: Interest income earned on loans (FTE) decreased mainly due to lower average rates, partly offset by higher average balances.
+Added: The Company's net yield on earning assets (FTE) was 3.70% in the current quarter compared to 3.55% in the second quarter of 2024.
+Added: Total interest income (FTE) increased $2.2 million over the second quarter of 2024.
+Added: Interest income on loans (FTE) was $262.1 million during the second quarter of 2025, a decrease of $7.0 million, or 2.6%, 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 decline of 29 basis points in the average rate earned, partly offset by growth of $321.3 million, or 1.9%, in average loan balances.
Most of the decrease in interest income occurred in the construction and land, business real estate and business loan categories.
The largest decrease to interest income occurred in construction and land loan interest, which declined $4.2 million due to a 97 basis point decrease in the average rate earned, coupled with a decline in average balances of $40.7 million, or 2.8%.
−Removed: 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 real estate loan interest income decreased $2.7 million due to a decrease of 34 basis points in the average rate earned, slightly offset by higher average balances of $26.3 million.
Business loan interest income declined $1.7 million due to a 39 basis point decrease in the average rate earned, partly offset by higher average balances of $266.9 million, or 4.5%.
−Removed: Consumer credit card loan interest income declined $1.1 million mainly due to a 62 basis point decrease in the average rate earned.
−Removed: 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.
−Removed: 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: Consumer credit card loan interest income declined $784 thousand mainly due to a 78 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 $2.1 million mainly due to a 26 basis point increase in the average rate earned.
+Added: Interest income on investment securities (FTE) was $80.6 million during the second quarter of 2025, which was an increase of $9.2 million over the same quarter last year.
The increase in interest income occurred mainly in interest earned on U.S.
−Removed: 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.
−Removed: A portion of the increase in interest earned on U.S.
−Removed: government securities was interest related to the Company's U.S.
−Removed: Treasury inflation-protected securities, which are tied to the non-seasonally adjusted Consumer Price Index (CPI-U).
−Removed: Interest earned on these securities increased $1.6 million over the same quarter last year.
+Added: government and federal agency securities which grew $13.0 million due to a $1.4 billion increase in average balances, partly offset by a 76 basis point decrease in the average rate earned.
+Added: Interest income related to the Company's U.S.
+Added: Treasury inflation-protected securities, which is tied to the non-seasonally adjusted Consumer Price Index (CPI-U), decreased $2.8 million from the same quarter last year.
Interest income earned on asset-backed securities grew $3.6 million due to a 123 basis point increase in the average rate earned, partly offset by a decrease in average balances of $200.2 million, or 11.2%.
−Removed: 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.
−Removed: 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.
−Removed: This increase was lower than the $2.0 million adjustment increasing income in the same quarter last year.
+Added: These increases to interest income were partly offset by a decline in interest income on mortgage-backed securities of $4.7 million, driven by lower average balances of $912.4 million, or 16.4%.
+Added: In addition, the Company recorded a $1.0 million adjustment to premium amortization at June 30, 2025, which increased interest income and reflected slower forward prepayment speed estimates on mortgage-backed securities.
+Added: This increase was higher than the $740 thousand adjustment increasing income in the same quarter last year.
Interest income earned on state and municipal obligations declined $1.3 million mainly due to a $289.9 million, or 27.1%, decrease in average balances.
−Removed: 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.
−Removed: 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.
−Removed: 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 earned on other securities decreased $1.3 million mainly due to a $207.8 million, or 27.1%, decrease in average balances.
+Added: Additionally, the average rate earned on investment securities during the three months ended June 30, 2025 increased 41 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 $10.2 billion in the second quarter of 2025, compared to $10.4 billion in the second quarter of 2024.
Interest income on securities purchased under agreements to resell increased $6.1 million over the same quarter last year, due to an increase of 81 basis points in the average rate earned and growth of $546.4 million in the average balance.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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: Interest income on deposits at the Federal Reserve decreased $6.0 million mainly due to a decline of 102 basis points in average rate earned.
+Added: The average fully taxable-equivalent yield on total interest earning assets was 4.90% in the second quarter of 2025, down from 4.98% in the second quarter of 2024.
+Added: Total interest expense decreased $15.6 million compared to the second quarter of 2024 due to decreases of $11.1 million in interest expense on interest bearing deposits and $4.6 million in interest expense on borrowings.
+Added: The decrease in deposit interest expense resulted from lower interest expense on certificates of deposit of $6.1 million due to a 78 basis point decline in the average rate paid and a decrease of $140.1 million, or 5.6%, in average balances.
+Added: Interest expense on interest checking and money market deposit accounts decreased $5.0 million due to a 24 basis point decline in average rates paid, partly offset by an increase of $739.5 million, or 5.6%, in average balances.
The overall rate paid on total deposits decreased 32 basis points from the same quarter last year.
Interest expense on federal funds purchased decreased $2.2 million due to lower average balances of $135.2 million and a 105 basis point decline in the average rate paid.
−Removed: 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
−Removed: growth of $211.3 million in the average balance.
−Removed: 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.
+Added: Interest expense on customer repurchase agreements decreased $2.4 million due to a 59 basis point decline in the average rate paid, partly offset by growth of $116.2 million in the average balance.
+Added: The overall average rate incurred on all interest bearing liabilities was 1.83% and 2.21% in the second quarters of 2025 and 2024, respectively.
+Added: Net interest income (FTE) for the first six months of 2025 was $553.8 million compared to $515.9 million for the same period in 2024.
+Added: For the first six months of 2025, the net interest margin was 3.63% compared to 3.44% for the same period in 2024.
+Added: Total interest income (FTE) for the first six months of 2025 increased $7.9 million over the same period last year mainly due to higher interest income on investment securities (FTE) and securities purchased under agreements to resell, partly offset by lower interest income on loans (FTE) and deposit balances at the Federal Reserve.
+Added: Loan interest income (FTE) decreased $17.3 million, or 3.2%, due to a 28 basis point decrease in the average rate earned, partly offset by a $242.7 million, or 1.4%, increase in average loan balances.
+Added: The decrease in interest earned occurred in the construction and land, business real estate, business and consumer credit card loan categories, partly offset by an increase in the personal real estate loan category.
+Added: Interest income on investment securities (FTE) increased $19.5 million mainly due to a 48 basis point increase in the average rate earned and an increase of $1.6 billion in average balances of U.S.
+Added: government and federal agency securities.
+Added: Interest earned on U.S.
+Added: government and federal agency securities increased $34.6 million due to higher average balances and an increase in the average rate earned, while interest earned on asset-backed securities increased $5.4 million due to higher average rates earned, partly offset by a decrease in average balances.
+Added: These increases in interest income on investment securities were partly offset by a decreases in interest earned on mortgage-backed and securities and state and municipal obligations of $12.2 million and $3.8 million, respectively, mainly due to decreases in average balances.
+Added: Interest earned on other securities decreased $4.4 million due to declines in both average balances and rates earned.
+Added: Higher interest income of $11.9 million was earned on securities purchased under agreements to resell, which saw growth in both average balances and rates earned.
+Added: Interest income on balances at the Federal Reserve decreased $6.2 million due to a 102 basis point decline in the average rate earned, partly offset by a $192.6 million increase in the average balance invested.
+Added: Total interest expense for the first six months of 2025 decreased $30.1 million compared to the same period last year.
+Added: Interest expense on deposits decreased $20.3 million, due to a 28 basis point decline in the average rate paid, partly offset by a $504.5 million increase in average balances.
+Added: Interest expense on borrowings decreased $9.8 million, due lower interest expense on federal funds purchased of $5.2 million, mainly due to lower average balances, while interest expense on securities sold under agreements to repurchase declined $4.7 million due to lower average rates paid, partly offset by higher average balances.
+Added: The overall cost of total interest bearing liabilities increased to 1.86% compared to 2.21% in the same period last year.
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 March 31 Increase (Decrease)
−Removed: (Dollars in thousands) 2025 2024 Amount % change
+Added: Three Months Ended June 30 Increase (Decrease) Six Months Ended June 30 Increase (Decrease)
+Added: (Dollars in thousands) 2025 2024 Amount % change 2025 2024 Amount % change
Trust fees $ 55,571 $ 52,291 $ 3,280 6.3 % $ 112,163 $ 103,396 $ 8,767 8.5 %
8 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 three month periods ended March 31, 2025 and 2024.
−Removed: Three Months Ended March 31
−Removed: (Dollars in thousands) 2025 2024 $ change % change
+Added: The table below is a summary of net bank card transaction fees for the six month periods ended June 30, 2025 and 2024.
+Added: Three Months Ended June 30 Six Months Ended June 30
+Added: (Dollars in thousands) 2025 2024 $ change % change 2025 2024 $ change % change
Net debit card fees $ 11,260 $ 11,383 $ (123) (1.1) % $ 21,548 $ 21,788 $ (240) (1.1) %
3 unchanged sentences
Total bank card transaction fees $ 46,362 $ 47,477 $ (1,115) (2.3) % $ 91,955 $ 94,407 $ (2,452) (2.6) %
−Removed: 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%.
−Removed: The increase was mainly due to higher trust fees, deposit account fees, capital market fees and other income.
+Added: For the second quarter of 2025, total non-interest income amounted to $165.6 million compared to $152.2 million in the same quarter last year, which was an increase of $13.4 million, or 8.8%.
+Added: The increase was mainly due to higher trust fees, capital market fees and gains on sales of assets.
Trust fees increased $3.3 million, or 6.3%, mainly due to growth of $2.7 million in private client trust fees.
Bank card transaction fees for the current quarter declined $1.1 million, or 2.3%, from the same period last year.
−Removed: Net corporate card fees declined $1.6 million mainly due to lower interchange income, partly offset by lower rewards expense.
−Removed: Net merchant fees increased $520 thousand mainly due to higher fees and lower network expense.
−Removed: Net credit and debit card fees decreased $164 thousand and $117 thousand, respectively, mainly due to lower interchange fees.
−Removed: 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.
−Removed: 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.
−Removed: 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.
+Added: Net credit card fees decreased $791 thousand mainly due to higher rewards expense.
+Added: Net corporate card fees declined $270 thousand mainly due to lower interchange income, partly offset by lower rewards expense.
+Added: Net debit card fees decreased $123 thousand mainly due to higher network expense, while net merchant fees increased $69 thousand mainly due to lower network expense.
+Added: Compared to the second quarter of last year, deposit account fees increased $923 thousand, or 3.6%, mainly due to higher corporate cash management fees of $910 thousand.
+Added: Capital market fees increased $1.4 million, or 29.7%, mainly due to higher trading securities and underwriting income, while consumer brokerage fees increased $905 thousand, or 20.2%, mainly due to higher annuity and advisory fees.
+Added: Other non-interest income increased $8.0 million, or 55.1%, mainly due to increases of $5.5 million in gains on sales of assets and $956 thousand in tax credit sales income.
+Added: Additionally, higher fair value adjustments of $1.3 million were recorded on the Company's deferred compensation plan assets and liabilities, which affect both other income and other expense.
+Added: Non-interest income for the first six months of 2025 was $324.6 million compared to $301.1 million in the first six months of 2024, which was an increase of $23.5 million, or 7.8%.
+Added: The increase was mainly due to higher trust fees, deposit account fees and gains on sales of assets, partly offset by lower net bank card fees.
+Added: Trust fees increased $8.8 million, or 8.5%, mainly due to higher private client and institutional trust fees.
+Added: Bank card transaction fees for the current year declined $2.5 million, or 2.6%, from the same period last year, mainly due to decreases of $1.8 million in net corporate card fees and $955 thousand in net credit card fees, partly offset by an increase in net merchant fees of $589 thousand.
+Added: Deposit account fees increased $3.4 million, or 6.9%, mainly due to higher corporate cash management fees.
+Added: Capital market fees increased $2.6 million, or 30.5%, mainly due to higher trading securities and underwriting income.
+Added: Consumer brokerage fees increased $1.3 million, or 14.4%, mainly due to higher annuity and advisory fees, while loan fees and sales increased $251 thousand, or 3.8%.
+Added: Other non-interest income increased $9.6 million, or 32.3%, mainly due to increases of $8.0 million in gains on sales of assets, $769 thousand in tax credit sales income and $568 thousand in cash sweep commissions.
+Added: In addition, increases of $765 thousand in fair value adjustments were recorded the Company's deferred compensation plan assets and liabilities.
Investment Securities Gains (Losses), Net
−Removed: Three Months Ended March 31
+Added: Three Months Ended June 30 Six Months Ended June 30
(In thousands) 2025 2024 2025 2024
4 unchanged sentences
Total investment securities gains (losses), net $ 437 $ 3,233 $ (7,154) $ 2,974
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−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 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.
+Added: Net gains and losses on investment securities, which were recognized in earnings during the three months ended June 30, 2025 and 2024, are shown in the table above.
+Added: Net securities gains of $437 thousand were reported in the second quarter of 2025, compared to net gains of $3.2 million in the same period last year.
+Added: The net gains in the second quarter of 2025 were mainly comprised of net gains in fair value of $4.4 million recorded on private equity investments and net gains of $1.9 million on equity securities.
+Added: These gains were largely offset by net losses of $4.2 million on sales of available for sale debt securities and net losses on sales of $1.6 million on sales of private equity investments.
+Added: The net gains on investment securities for the same quarter last year were primarily comprised of net gains of $178.2 million on equity investments, primarily Visa Class C shares, and net gains in fair value of $5.7 million recorded on private equity investments, mostly offset by net losses of $179.1 million on the sale of available for sale securities as part of the planned portfolio repositioning.
+Added: Additional information about the sale of Visa Class C shares and the Company's available for sale debt portfolio repositioning transactions is discussed in Note 3, Investment Securities.
+Added: Net losses on investment securities of $7.2 million were recognized in earnings for the six months ended June 30, 2025, compared to net gains of $3.0 million for the same period in 2024.
+Added: Net losses in the first half of 2025 were mainly comprised of net losses of $4.2 million on sales of available for sale debt securities and net losses in fair value of $4.1 million recorded on private equity investments, partly offset by net gains of $1.8 million on equity securities.
+Added: Net gains in the first half of 2024 were mainly comprised of net gains of $178.3 million on equity investments and net gains in fair value of $12.8 million recorded on private equity investments, largely offset by net losses of $187.5 million on sales of available for sale securities.
+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 $943 thousand during the first six months of 2025 and expense of $1.8 million during the first six months of 2024.
Non-Interest Expense
−Removed: Three Months Ended March 31 Increase (Decrease)
−Removed: (Dollars in thousands) 2025 2024 Amount % change
+Added: Three Months Ended June 30 Increase (Decrease) Six Months Ended June 30 Increase (Decrease)
+Added: (Dollars in thousands) 2025 2024 Amount % change 2025 2024 Amount % change
Salaries and employee benefits $ 155,025 $ 149,120 $ 5,905 4.0 % $ 308,103 $ 300,921 $ 7,182 2.4 %
8 unchanged sentences
Total non-interest expense $ 244,437 $ 232,214 $ 12,223 5.3 % $ 482,813 $ 477,911 $ 4,902 1.0 %
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: Full-time equivalent employees totaled 4,662 at March 31, 2025, compared to 4,721 at March 31, 2024.
+Added: Non-interest expense for the second quarter of 2025 amounted to $244.4 million, an increase of $12.2 million, or 5.3%, compared to expense of $232.2 million in the second quarter of last year.
+Added: The increase in expense over the same period last year was mainly due to higher salaries and employee benefits expense, professional and other services expense and data processing and software expense, partly offset by lower contribution expense.
+Added: Salaries and employee benefits expense increased $5.9 million, or 4.0%, mainly due to higher healthcare expense of $2.3 million, incentive compensation expense of $2.2 million and full-time salaries expense of $2.1 million.
+Added: Full-time equivalent employees totaled 4,658 at June 30, 2025, compared to 4,724 at June 30, 2024.
Data processing and software expense increased $1.4 million, or 4.4%, mainly due to higher costs for service providers and software.
−Removed: Net occupancy increased $446 thousand, 3.3%, mainly due to higher demolition costs.
−Removed: Professional and other services expense increased $1.4 million, or 15.9%, and marketing expense increased $1.8 million, or 44.8%.
−Removed: 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.
−Removed: 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.
+Added: Net occupancy increased $1.1 million, 8.8%, mainly due to higher depreciation expense and lower external rent income.
+Added: Professional and other services expense increased $4.4 million, or 50.6%, and included $1.9 million in acquisition related legal and professional services expense.
+Added: Marketing expense increased $618 thousand, or 11.5%, and equipment expense increased $304 thousand, or 3.0%.
+Added: Supplies and communication expense increased $326 thousand, or 7.0%, mainly due to higher postage and bank card reissuance costs.
+Added: Deposit insurance expense increased $958 thousand, or 40.7%, mainly due to a $1.2 million accrual adjustment that lowered expense in the prior year from a one-time special assessment by the FDIC to replenish the Deposit Insurance Fund.
+Added: Other non-interest expense decreased $2.5 million, or 19.2%, mainly due to a $5.0 million donation to a related charitable foundation in 2024 that did not reoccur.
+Added: This decrease was partly offset by increases of $648 thousand in travel and entertainment expense and $1.3 million in fair value adjustments on the Company's deferred compensation plan assets and liabilities.
+Added: Non-interest expense amounted to $482.8 million for the first six months of 2025, an increase of $4.9 million, or 1.0%, over the first six months of 2024.
+Added: Salaries and benefits expense increased $7.2 million, or 2.4%, mainly due to higher incentive compensation, full-time salaries expense and healthcare expense.
+Added: Data processing and software expense increased $2.5 million, or 3.9%, due to increased costs for service providers and software expense.
+Added: Professional and other services expense $5.7 million, or 33.2%, and included $1.9 million in acquisition related legal and professional fees.
+Added: Occupancy expense increased $1.6 million, or 6.0%, mainly due to higher building depreciation expense and demolition costs.
+Added: Marketing expense increased $2.4 million, or 25.8%, and equipment expense increased $304 thousand, or 3.0%.
+Added: Supplies and communication expense increased $628 thousand, or 6.7%, mainly due to higher bank card reissuance costs.
+Added: Deposit insurance decreased $3.3 million, or 32.0%, mainly due to accrual adjustments in 2024 to the special assessment by the FDIC.
+Added: Other non-interest expense decreased $12.1 million, or 38.1%, 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.
Provision and Allowance for Credit Losses on Loans and Liability for Unfunded Lending Commitments
−Removed: Three Months Ended
−Removed: (In thousands) Mar.
−Removed: 31, 2025 Dec.
−Removed: 31, 2024 Mar.
+Added: Three Months Ended Six Months Ended June 30
+Added: (In thousands) June 30, 2025 Mar.
+Added: 31, 2025 June 30, 2024 2025 2024
ALLOWANCE FOR CREDIT LOSSES ON LOANS
20 unchanged sentences
ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LIABILITY FOR UNFUNDED LENDING COMMITMENTS $ 181,265 $ 185,358 $ 179,262 $ 181,265 $ 179,262
−Removed: Three Months Ended
−Removed: 31, 2025 Dec.
−Removed: 31, 2024 Mar.
+Added: Three Months Ended Six Months Ended June 30
+Added: June 30, 2025 Mar.
+Added: 31, 2025 June 30, 2024 2025 2024
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) Mar.
−Removed: 31, 2025 Dec.
−Removed: 31, 2024 Mar.
+Added: June 30, 2025 Mar.
+Added: 31, 2025 June 30, 2024
+Added: (Dollars in thousands)
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 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
+Added: Net loan charge-offs in the second quarter of 2025 amounted to $9.7 million, compared to $10.8 million in the prior quarter and $9.8 million in the second quarter of last year.
+Added: Comp ared to the same period last year, net loan charge-offs in the second quarter of 2025 decreased $67 thousand and decreased $1.1 million from the previous quarter.
+Added: The decrease from the prior year was mainly driven by decreases of $417 thousand and $190 thousand in business real estate and business loan net charge-offs, respectively, offset by increases of $364 thousand and $339 thousand in consumer and consumer credit card loan net charge-offs, respectively.
+Added: The decrease in net loan charge-offs for the three months ended June 30, 2025 from the previous quarter was driven by decreases of $802 thousand and $684 thousand in net charge-offs on business real estate and consumer loans, respectively, partially offset by an increase of $386 thousand in net charge-offs on business loans.
+Added: For the three months ended June 30, 2025, annualized net charge-offs on average consumer credit card loans were 5.08%, compared to 5.04% in the previous quarter and 4.91% in the same period last year.
Consumer loan annualized net charge-offs in the current quarter amounted to .40%, compared to .56% in the prior quarter and .34% in the same period last year.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
+Added: In the second quarter of 2025 , total annualized net loan charge-offs were .22%, compared to .25% in the previous quarter and .23% in the same period last year.
+Added: For the three months ended June 30, 2025 , the provision for credit losses on loans was $7.9 million, which was a decrease of $7.2 million from the provision recorded in the prior quarter.
+Added: The provision for the three months ended March 31, 2025 included an increase in the allowance for credit losses on loans, as well as slightly higher loan net charge-offs, as compared to the provision for the three months ended June 30, 2025 .
+Added: Compared to the same period in the prior year, the provision for credit losses on loans for the three months ended June 30, 2025 was flat.
+Added: For the six months ended June 30, 2025, the provision for credit losses on loans was $23.0 million, which was an $8.2 million increase over the $14.8 million provision recorded in the same period last year.
+Added: The increase mainly occurred during the first quarter of 2025, as explained above.
Changes in the provision are driven by changes in the estimate for the allowance for credit losses on loans.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
+Added: At June 30, 2025, the allowance for credit losses on loans increased $2.5 million compared to the allowance for credit losses on loans at December 31, 2024.
+Added: The increase in the allowance for credit losses mainly occurred in the personal banking loan portfolio, which saw an increase of $2.4 million due to increased loss experience in the consumer portfolio, partially offset by a decrease in the allowance for credit losses in the personal real estate loan portfolio.
+Added: The forecast utilized to estimate the allowance for credit losses at June 30, 2025 reflected a slight decline in key macroeconomic variables.
+Added: The allowance for credit losses on loans was $165.3 million at June 30, 2025 and was .94%, .95% and .92% of total loans at June 30, 2025, December 31, 2024 and June 30, 2024, respectively.
+Added: In the current quarter, the provision for credit losses on unfunded lending commitments was a benefit of $2.3 million, compared to a benefit of $2.4 million for the three months ended June 30, 2024.
+Added: At June 30, 2025, the liability for unfunded lending commitments was $16.0 million, compared to $18.9 million at December 31, 2024 and $20.7 million at June 30, 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 March 31, 2025.
+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 June 30, 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: March 31, 2025 December 31, 2024
+Added: June 30, 2025 December 31, 2024
Non-accrual loans $ 18,870 $ 18,278
4 unchanged sentences
Total loans past due 90 days and still accruing interest $ 25,303 $ 24,516
−Removed: Non-accrual loans totaled $22.6 million at March 31, 2025, an increase of $4.3 million from the balance at December 31, 2024.
−Removed: 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.
−Removed: 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.
−Removed: Foreclosed real estate totaled $642 thousand at March 31, 2025, an increase of $299 thousand compared to December 31, 2024.
−Removed: 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.
+Added: Non-accrual loans totaled $18.9 million at June 30, 2025, an increase of $592.0 thousand from the balance at December 31, 2024.
+Added: The increase occurred mainly in business non-accrual loans, which increased $309 thousand, as well as construction and land loans, which increased $206 thousand.
+Added: At June 30, 2025, non-accrual loans were comprised of business real estate (80.0%), revolving home equity (10.5%), business (2.2%), personal real estate (5.0%), and construction and land (2.3%) loans.
+Added: Foreclosed real estate totaled $397 thousand at June 30, 2025, an increase of $54 thousand compared to December 31, 2024.
+Added: Loans past due 90 days or more and still accruing interest totaled $25.3 million as of June 30, 2025, an increase of $787 thousand 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 $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%.
+Added: Such loans totaled $276.0 million at June 30, 2025 compared to $330.3 million at December 31, 2024, resulting in a decrease of $54.3 million, or 16.4%.
(In thousands)
−Removed: March 31, 2025 December 31, 2024
+Added: June 30, 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 March 31, 2025, the Company held $136.3 million of loans that had been modified during the three months ended March 31, 2025.
+Added: At June 30, 2025, the Company held $138.1 million of loans that had been modified during the six months ended June 30, 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 8.2% of total loans outstanding at March 31, 2025.
−Removed: The largest component of construction and land loans was commercial construction, which increased $18.6 million during the three months ended March 31, 2025.
−Removed: 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.
−Removed: (Dollars in thousands) March 31,
+Added: The Company's portfolio of construction and land loans, as shown in the table below, amounted to 8.0% of total loans outstanding at June 30, 2025.
+Added: The largest component of construction and land loans was commercial construction, which increased $6.1 million during the six months ended June 30, 2025.
+Added: At June 30, 2025, multi-family residential construction loans totaled approximately $571.7 million, or 47.5%, of the commercial construction loan portfolio, compared to $526.6 million, or 44.0%, at December 31, 2024.
+Added: (Dollars in thousands) June 30,
December 31, 2024
5 unchanged sentences
Real Estate – Business Loans
−Removed: Total business real estate loans were $3.6 billion at March 31, 2025 and comprised 20.9% of the Company's total loan portfolio.
+Added: Total business real estate loans were $3.8 billion at June 30, 2025 and comprised 21.3% 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 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.
−Removed: (Dollars in thousands) March 31,
+Added: At June 30, 2025, 33.5% 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) June 30,
December 31, 2024
9 unchanged sentences
Total real estate - business loans $ 3,757,778 100.0 % 21.3 % $ 3,661,218 100.0 % 21.3 %
−Removed: 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.
+Added: Information about the credit quality of the Company's business real estate loan portfolio as of June 30, 2025 and December 31, 2024 is provided in the table below.
(Dollars in thousands) Pass Special Mention Substandard Non-Accrual Total
−Removed: March 31, 2025
+Added: June 30, 2025
Owner-occupied $ 1,204,075 $ 21,291 $ 32,050 $ 292 $ 1,257,708
20 unchanged sentences
Revolving Home Equity Loans
−Removed: The Company had $356.7 million in revolving home equity loans at March 31, 2025 that were collateralized by residential real estate.
+Added: The Company had $364.4 million in revolving home equity loans at June 30, 2025 that were collateralized by residential real estate.
Most of these loans (93.5%) 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 March 31, 2025, the outstanding
+Added: As of June 30, 2025, the outstanding
principal of loans with an original LTV higher than 80% was $28.2 million, or 7.9% of the portfolio, compared to $31.9 million as of December 31, 2024.
−Removed: 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.
−Removed: The weighted average FICO score for the total portfolio balance at March 31, 2025 is 774.
+Added: Total revolving home equity loan balances over 30 days past due were $3.7 million at June 30, 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 June 30, 2025 and December 31, 2024.
+Added: The weighted average FICO score for the total portfolio balance at June 30, 2025 is 775.
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 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: The Company's consumer loan portfolio also includes fixed rate home equity loans, typically for home repair or remodeling, and these loans comprised 10.3% of the consumer loan portfolio at March 31, 2025.
−Removed: Losses on these loans have historically been low, and the Company saw net recoveries of $14 thousand for the first three months of 2025.
−Removed: Private banking loans comprised 37.3% of the consumer loan portfolio at March 31, 2025.
−Removed: 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.
+Added: Auto loans comprised 35.6% of the consumer loan portfolio at June 30, 2025, and outstanding balances for auto loans were $769.1 million and $776.7 million at June 30, 2025 and December 31, 2024, respectively.
+Added: The balances over 30 days past due amounted to $8.1 million at June 30, 2025 and $14.4 million at December 31, 2024, respectively, and comprised 1.1% of the outstanding balances of these loans at June 30, 2025 and 1.9% at December 31, 2024.
+Added: For the six months ended June 30, 2025, $190.2 million of new auto loans were originated, compared to $196.4 million during the first six months of 2024.
+Added: At June 30, 2025, the automobile loan portfolio had a weighted average FICO score of 756, and net charge-offs on auto loans were 1.0% 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 9.9% of the consumer loan portfolio at June 30, 2025.
+Added: Losses on these loans have historically been low, and the Company saw net recoveries of $16 thousand for the first six months of 2025.
+Added: Private banking loans comprised 38.4% of the consumer loan portfolio at June 30, 2025.
+Added: The Company's private banking loans are generally well-collateralized, and at June 30, 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 $823 thousand in the first three months of 2025 and were .3% of the average balances of these loans at March 31, 2025.
+Added: Net charge-offs on private banking, health services financing, motorcycle and marine and RV loans totaled $1.4 million in the first six months of 2025 and were .3% of the average balances of these loans at June 30, 2025.
Consumer Credit Card Loans
The Company offers low promotional rates on selected consumer credit card products.
−Removed: 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.
+Added: Out of a portfolio at June 30, 2025 of $576.2 million in consumer credit card loans outstanding, approximately $122.5 million, or 21.3%, carried a low promotional rate.
Within the next six months, $51.7 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.
−Removed: March 31, 2025 December 31, 2024
+Added: June 30, 2025 December 31, 2024
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 $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.
+Added: The Company's energy lending portfolio is comprised of lending to the petroleum and natural gas sectors and totaled $330.5 million, or 1.9% of total loans at June 30, 2025, a decrease of $7.6 million from December 31, 2024, as shown in the table below.
(In thousands)
−Removed: March 31, 2025 December 31, 2024 Unfunded commitments at March 31, 2025
−Removed: Extraction $ 258,642 $ 274,265 $ 151,489
−Removed: Mid-stream shipping and storage 28,246 36,801 102,091
−Removed: Downstream distribution and refining 8,270 9,757 37,798
+Added: June 30, 2025 December 31, 2024 Unfunded commitments at June 30, 2025
+Added: Upstream activities $ 252,928 $ 274,265 $ 168,363
+Added: Mid-stream activities 31,049 36,801 91,844
+Added: Downstream activities 18,903 9,757 26,104
Support activities 27,596 17,226 14,065
4 unchanged sentences
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.
−Removed: The balance of SNC loans totaled $1.6 billion at both March 31, 2025 and December 31, 2024.
−Removed: Additional unfunded commitments at March 31, 2025 totaled $2.3 billion.
−Removed: 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.
−Removed: 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.
+Added: The balance of SNC loans totaled $1.7 billion and $1.6 billion at June 30, 2025 and December 31, 2024, respectively.
+Added: Additional unfunded commitments at June 30, 2025 totaled $2.3 billion.
+Added: Income tax expense was $42.4 million in the second quarter of 2025, compared to $37.0 million in the first quarter of 2025 and $38.6 million in the second quarter of 2024.
+Added: The Company's effective tax rate, including the effect of non-controlling interest, was 21.8% in the second quarter of 2025, compared to 21.9% in the first quarter of 2025 and 21.7% in the second quarter of 2024.
+Added: On July 4, 2025, the One Big Beautiful Act ("OBBBA") was enacted in the United States.
+Added: The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cut and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions.
+Added: The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027.
+Added: We do not expect these items to have a significant impact on our financial statements, though we expect that some minor operational changes may be necessary to support new information reporting requirements.
Financial Condition
Balance Sheet
−Removed: Total assets of the Company were $32.4 billion at March 31, 2025 and $32.0 billion at December 31, 2024.
−Removed: 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.
−Removed: 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.
−Removed: Compared to the previous quarter, average balances of business loans and business real estate loans grew $143.0 million and $31.8 million, respectively.
−Removed: 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.
−Removed: Total average available for sale debt securities increased $66.1 million over the previous quarter to $9.2 billion, at fair value.
−Removed: The increase in available for sale debt securities was mainly the result of higher average balances of U.S.
−Removed: government and federal agency obligations and other asset-backed securities, partly offset by lower average balances of mortgage-backed securities.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: Total average deposits decreased $83.7 million this quarter compared to the previous quarter.
−Removed: 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.
−Removed: 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.
−Removed: The average loans to deposits ratio was 69.4% in the
−Removed: current quarter and 68.5% in the prior quarter.
−Removed: 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.
+Added: Total assets of the Company were $32.3 billion at June 30, 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 $31.1 billion at June 30, 2025 and $30.9 billion at December 31, 2024, and consisted of 57% in loans and 32% in investment securities at June 30, 2025.
+Added: At June 30, 2025, total loans increased $445.4 million or 2.6%, compared to balances at December 31, 2024.
+Added: The increase was mainly due to growth in business and business real estate loans of $274.9 million and $96.6 million, respectively.
+Added: The increase in business loans was mainly due growth in commercial and industrial lending.
+Added: In addition, consumer loans, which includes automobile, marine and RV, fixed rate home equity and other consumer loans, increased $84.5 million, mainly due to growth in other consumer loans.
+Added: These increases were partly offset by a decrease in consumer credit cards loans of $19.8 million.
+Added: Total available for sale debt securities, excluding fair value adjustments, decreased $447.3 million a t June 30, 2025 compared to December 31, 2024.
+Added: Available for sale debt security sales, maturities and pay downs during this period totaled $993.9 mill ion, partly offset by pu rchases of available for sale debt securities during this period of $532.4 million.
+Added: The decline in available for sale debt securities was mainly the result of lower balances of mortgage-backed securities, asset-backed securities and state and municipal obligations, which decreased $289.3 million, $78.9 million and $48.1 million, respectively, at J une 30, 2025 compared to December 31, 2024.
+Added: At June 3 0, 2025, the duration of the available for sale investment portfolio
+Added: was 4.2 years, and maturities and pay downs of approximately $1.3 billion are expected to occur during the next 12 months.
+Added: The Company does not have any investment securities classified as held-to-maturity.
+Added: Total deposits at June 30, 2025 amounted to $25.5 billion, an increase of $200.4 million compared to December 31, 2024.
+Added: The increase in deposits largely resulted from an increase in interest checking and money market deposit balances of $957.6 million.
+Added: This increase was partly offset by a decrease in demand deposits of $757.1 million, mainly in business demand deposits (decrease of $819.8 million).
+Added: The Company’s borrowings totaled $2.6 billion at June 30, 2025, a decrease of $315.3 million from balances at December 31, 2 024, mainly due to a decline in customer repurchase agreement balances.
Liquidity and Capital Resources
2 unchanged sentences
(In thousands)
−Removed: March 31, 2025 March 31, 2024 December 31, 2024
+Added: June 30, 2025 June 30, 2024 December 31, 2024
Liquid assets:
3 unchanged sentences
Total $ 11,540,043 $ 10,749,328 $ 11,764,406
−Removed: Interest earning balances at the Federal Reserve Bank, which have overnight maturities and are used for general liquidity purposes, totaled $2.8 billion at March 31, 2025 and increased $132.0 million from December 31, 2024.
−Removed: 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.
−Removed: 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.
+Added: Interest earning balances at the Federal Reserve Bank, which have overnight maturities and are used for general liquidity purposes, totaled $2.6 billion at June 30, 2025 and decreased $289 thousand from December 31, 2024.
+Added: At June 30, 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 $8.9 billion at June 30, 2025 and included an unrealized net loss of $764.4 million.
The total net unrealized loss included net losses of $695.9 million on mortgage-backed and asset-backed securities and $59.8 million on state and municipal obligations.
−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 4.1 years at March 31, 2025.
+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 4.2 years at June 30, 2025.
Approximately $1.3 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: March 31, 2025 March 31, 2024 December 31, 2024
+Added: June 30, 2025 June 30, 2024 December 31, 2024
Investment securities pledged for the purpose of securing:
8 unchanged sentences
* Includes securities pledged for collateral swaps outstanding at each period end shown in the table.
−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 69.4% for the three months ended March 31, 2025.
−Removed: 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.
+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 69.8% for the six months ended June 30, 2025.
+Added: Core customer deposits, defined as non-interest bearing, interest checking, savings, and money market deposit accounts totaled $23.1 billion and represented 90.7% of the Company's total deposits at June 30, 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 $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.
−Removed: 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.
+Added: Core deposits increased $215.9 million at June 30, 2025 compared to December 31, 2024, primarily due to increases in commercial and wealth management deposits of $351.2 million and $12.7 million, respectively.
+Added: While the Company considers core consumer and
+Added: 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.
If these corporate deposits decline, the Company's funding needs may be met by liquidity supplied by investment security maturities and pay downs expected to total $1.3 billion over the next year, as noted above.
1 unchanged sentence
The Company also holds securities sold under agreements to repurchase ("resale agreements") which are an additional source of liquidity.
−Removed: At March 31, 2025, the Company's resale agreements totaled $850.0 million and mature from 2028 through 2030.
+Added: At June 30, 2025, the Company's resale agreements totaled $850.0 million and mature from 2028 through 2030.
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 $875.2 million in fair value at March 31, 2025.
−Removed: Certificates of deposit of $100,000 or greater totaled $1.4 billion at March 31, 2025.
−Removed: These deposits are normally considered more volatile and higher costing, and comprised 5.3% of total deposits at March 31, 2025.
+Added: This collateral totaled $874.6 million in fair value at June 30, 2025.
+Added: Certificates of deposit of $100,000 or greater totaled $1.4 billion at June 30, 2025.
+Added: These deposits are normally considered more volatile and higher costing, and comprised 5.4% of total deposits at June 30, 2025.
(In thousands)
−Removed: March 31, 2025 March 31, 2024 December 31, 2024
+Added: June 30, 2025 June 30, 2024 December 31, 2024
Core deposit base:
9 unchanged sentences
(In thousands)
−Removed: March 31, 2025 March 31, 2024 December 31, 2024
+Added: June 30, 2025 June 30, 2024 December 31, 2024
Federal funds purchased $ 125,975 $ 254,720 $ 123,715
2 unchanged sentences
Total $ 2,611,510 $ 2,555,383 $ 2,926,814
−Removed: 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.
−Removed: At March 31, 2025, the Company had approved lines of credit totaling $4.1 billion.
+Added: Federal funds purchased, which totaled $126.0 million at June 30, 2025, are unsecured overnight borrowings obtained mainly from upstream correspondent banks with which the Company maintains approved lines of credit.
+Added: At June 30, 2025, the Company had approved lines of credit totaling $4.5 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 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.
+Added: Total repurchase agreements at June 30, 2025 were comprised of non-insured customer funds totaling $2.5 billion, and securities pledged as collateral for these retail agreements totaled $2.5 billion at June 30, 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 March 31, 2025.
+Added: There were no advances outstanding from the FHLB at June 30, 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 March 31, 2025.
−Removed: March 31, 2025
+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 June 30, 2025.
+Added: June 30, 2025
(In thousands)
18 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 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.
+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 $229.7 million during the first six 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 $249.8 million and have historically been a stable source of funds.
Investing activities, which occur mainly in the loan and investment securities portfolios, used cash of $250.7 million.
−Removed: Activity in the investment securities portfolio used cash of $225.0 million from purchases of securities under agreements to resell (net of repayments).
−Removed: 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: Activity in the investment securities portfolio used cash of $466.5 million from a net increase in loans and $225.0 million from purchases of securities under agreements to resell (net of repayments).
These uses of cash were partly balanced by sales, maturities, and pay downs (net of purchases) of investment securities, which provided cash of $463.9 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 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.
−Removed: This increase was largely offset by federal funds purchases and securities sold under agreements to repurchase, which used cash of $526.7 million.
+Added: Financing activities used cash of $228.7 million, largely resulting from federal funds purchased and securities sold under agreements to repurchases, which used cash of $330.3 million during the first six months of 2025.
+Added: This decrease was largely offset by a net increase of $230.6 million in deposits.
Additionally, purchases of treasury stock and cash dividends (including distributions to non-controlling interest) used cash of $67.0 million and $77.0 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 March 31, 2025 and December 31, 2024, as shown in the following table.
−Removed: (Dollars in thousands) March 31, 2025 December 31, 2024 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 June 30, 2025 and December 31, 2024, as shown in the following table.
+Added: (Dollars in thousands) June 30, 2025 December 31, 2024 Minimum Capital Requirement Capital Conservation Buffer Minimum Ratios Requirement including Capital Conservation Buffer
Minimum Ratios
17 unchanged sentences
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: 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.
−Removed: At March 31, 2025, 2,076,842 shares remained available for purchase under the current Board authorization.
+Added: During the six months ended June 30, 2025, the Company purchased 1,026,705 shares at an average price of $63.88 in open market purchases and through stock-based compensation transactions.
+Added: At June 30, 2025, 1,904,943 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 $.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.
+Added: The Company paid a $.275 per share cash dividend on its common stock in the second 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 March 31, 2025 totaled $15.9 billion (including $5.9 billion in unused, approved credit card lines).
+Added: The most significant of these are loan commitments, which at June 30, 2025 totaled $15.9 billion (including $6.0 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 $613.5 million and $2.0 million, respectively, at March 31, 2025.
+Added: The contractual amount of standby and commercial letters of credit totaled $596.0 million and $1.7 million, respectively, at June 30, 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 March 31, 2025, the liability for unfunded
+Added: At June 30, 2025, the liability for unfunded
lending commitments totaled $16.0 million.
2 unchanged sentences
These credits are either resold to third parties at a profit or retained for use by the Company.
−Removed: During the first three months of 2025, purchases and sales of tax credits amounted to $47.0 million and $49.8 million, respectively.
−Removed: 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.
−Removed: 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.
−Removed: The Company continued to maintain a strong liquidity position throughout the first three months of 2025.
+Added: During the first six months of 2025, purchases and sales of tax credits amounted to $118.2 million and $94.6 million, respectively.
+Added: Fees from sales of tax credits were $3.7 million for the six months ended June 30, 2025, compared to $2.9 million in the same period last year.
+Added: At June 30, 2025, the Company expected to fund outstanding purchase commitments of $110.6 million during the remainder of 2025 and had purchase commitments of $390.8 million that it expects to fund from 2026 through 2029.
+Added: The Company continued to maintain a strong liquidity position throughout the first six 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 three months of 2025 and 2024.
+Added: The table below is a summary of segment pre-tax income results for the first six months of 2025 and 2024.
(Dollars in thousands)
1 unchanged sentence
Consolidated Totals
−Removed: Three Months Ended March 31, 2025
+Added: Six Months Ended June 30, 2025
Net interest income $ 252,352 $ 260,878 $ 45,195 $ 558,425 $ (9,176) $ 549,249
4 unchanged sentences
Income before income taxes $ 114,142 $ 193,161 $ 90,960 $ 398,263 $ (34,503) $ 363,760
−Removed: Three Months Ended March 31, 2024
+Added: Six Months Ended June 30, 2024
Net interest income $ 255,374 $ 252,223 $ 45,424 $ 553,021 $ (41,773) $ 511,248
7 unchanged sentences
Percent (9.2) % 7.0 % 7.0 % 1.8 % (46.1) % 11.2 %
−Removed: 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.
−Removed: 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 $3.8 million decrease in net allocated funding credits assigned to the Consumer segment's loan and deposit portfolios.
−Removed: This decrease was partly offset by lower deposit interest expense of $870 thousand.
−Removed: Non-interest income decreased $348 thousand, or 1.4%, mainly due to lower net bank card fees (mainly credit and debit card fees).
−Removed: 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.
−Removed: These increases were partly offset by lower FDIC insurance expense and allocated support costs for online banking and information technology.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: Net interest income increased $6.4 million, or 5.1%, mainly due to higher net allocated funding credits of $8.0 million, coupled with
−Removed: lower interest expense on deposits and borrowings of $7.5 million and $2.1 million, respectively.
−Removed: These increases to income were partly offset by lower loan interest income of $11.7 million.
−Removed: 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: For the six months ended June 30, 2025, income before income taxes for the Consumer segment decreased $11.5 million, or 9.2%, compared to the first six months of 2024.
+Added: The decrease in income before income taxes was due to increases in non-interest expense of $5.4 million, or 3.3%, and the provision for credit losses of $1.9 million and declines in net interest income of $3.0 million, or 1.2%, and non-interest income of $1.2 million, or 2.5%.
+Added: Net interest income declined mainly due to lower net allocated funding credits assigned to the Consumer segment's loan and deposit portfolios of $8.2 million.
+Added: This decrease was partly offset by lower deposit interest expense of $5.3 million.
+Added: Non-interest income decreased 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, miscellaneous losses, data processing and software, and supplies expense.
+Added: In addition, allocated support costs increased due to higher allocated costs for retail administration and operations.
+Added: The increase in the provision for credit losses over the first six months of 2024 was mainly due to higher auto and consumer credit card loan net charge-offs.
+Added: For the six months ended June 30, 2025, income before income taxes for the Commercial segment increased $12.7 million, or 7.0%, compared to the same period in the previous year.
+Added: This increase was mainly due to higher net interest income and non-interest income, partly offset by higher non-interest expense.
+Added: Net interest income increased $8.7 million, or 3.4%, mainly due to lower interest expense on deposits and customer repurchase agreements of $13.1 million and $4.3 million, respectively, coupled with higher net allocated funding credits of $10.5 million.
+Added: These increases to income were partly offset by lower loan
+Added: interest income of $19.9 million.
+Added: Non-interest income increased $14.6 million, or 11.2%, over the previous year mainly due to higher gains on asset sales and growth in deposit account fees (mainly corporate cash management fees) and capital market fees (mainly underwriting and trading securities).
These increases were partly offset by a decrease in net bank card fees (mainly corporate card fees).
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: Net interest income decreased $1.0 million, or 4.5%, mainly due to a $2.9 million decrease in net allocated funding credits.
−Removed: This decrease was partly offset by a $1.1 million increase in loan interest income and an $822 thousand decrease deposit interest expense.
−Removed: 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).
−Removed: Non-interest expense increased $1.7 million, or 4.4%, mainly due to higher salaries and benefits expense and marketing expense.
+Added: Non-interest expense increased $10.7 million, or 5.3%, mainly due to higher legal fees, salaries and benefits expense and allocated service and support costs for commercial payments and product support, commercial loan servicing and operations, and branch employee expense.
+Added: The provision for credit losses decreased $126 thousand from the same period last year, mainly due to commercial and industrial loan net recoveries.
+Added: Wealth segment pre-tax profitability for the six months ended June 30, 2025 increased $6.0 million, or 7.0%, over the same period in the previous year.
+Added: Net interest income decreased $229 thousand, or .5%, mainly due to a $5.0 million decrease in net allocated funding credits.
+Added: This decrease was largely offset by a $3.0 million increase in loan interest income and a $1.8 million decrease deposit interest expense.
+Added: Non-interest income increased $9.9 million, or 8.4%, over the prior year largely due to higher private client and institutional trust fees and brokerage fees (mainly annuity and advisory fees).
+Added: Non-interest expense increased $3.6 million, or 4.7%, mainly due to higher salaries and benefits, data processing and software, and allocated support costs for information technology.
The provision for credit losses increased $22 thousand over the same period last year.
2 unchanged sentences
The pre-tax profitability in this category was $29.5 million higher than in the same period last year.
−Removed: Unallocated securities losses were $7.6 million in the first three months of 2025 compared to losses of $259 thousand in 2024.
−Removed: 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.
−Removed: 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 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: Unallocated securities losses were $7.2 million in the first six months of 2025 compared to gains of $3.0 million in 2024.
+Added: Also, the unallocated provision for credit losses decreased $8.0 million, primarily driven by a decrease in the liability for unfunded lending commitments, partly offset by an increase in the provision for credit losses on loans, which are both not allocated to the segments for management reporting purposes.
+Added: Net charge-offs are allocated to the segments when incurred for management reporting purposes.
+Added: The provision for credit losses on loans in the first six months of 2025 was $23.0 million, or $2.5 million higher than net charge-offs, due to an increase in the allowance for credit losses on loans.
In the comparable period last year, the provision for credit losses on loans was $14.8 million, or $3.8 million lower than net charge-offs, due to a decrease in the allowance for credit losses on loans.
−Removed: For th e three months ended March 31, 2025, the Company's provision on unfunded lending commitments was a benefit of $608 thousand.
−Removed: Additionally, net interest income increased $17.5 million, while non-interest expense decreased $15.0 million.
−Removed: These increases to pre-tax profitability were slightly offset by lower non-interest income of $988 thousand.
+Added: For the six months ended June 30, 2025, the Company's provision on unfunded lending commitments was a benefit of $2.9 million.
+Added: Additionally, net interest income increased $32.6 million and non-interest income increased $202 thousand, while non-interest expense decreased $14.8 million.
Impact of Recently Issued Accounting Standards
14 unchanged sentences
AVERAGE BALANCE SHEETS — AVERAGE RATES AND YIELDS
−Removed: Three Months Ended March 31, 2025 and 2024
−Removed: First Quarter 2025
−Removed: First Quarter 2024
+Added: Three Months Ended June 30, 2025 and 2024
+Added: Second Quarter 2025
+Added: Second Quarter 2024
(Dollars in thousands)
61 unchanged sentences
There was no interest expense capitalized in 2025.
+Added: AVERAGE BALANCE SHEETS — AVERAGE RATES AND YIELDS
+Added: Six Months Ended June 30, 2025 and 2024
+Added: Six Months 2025
+Added: Six Months 2024
+Added: (Dollars in thousands)
+Added: Average Balance
+Added: Interest Income/Expense
+Added: Rates Earned/Paid
+Added: Average Balance Interest Income/Expense Avg.
+Added: Rates Earned/Paid
+Added: $ 6,177,108 $ 175,616 5.73 % $ 5,926,945 $ 179,424 6.09 %
+Added: Real estate — construction and land 1,423,096 51,863 7.35 1,472,029 61,342 8.38
+Added: Real estate — business 3,680,187 107,656 5.90 3,696,850 115,133 6.26
+Added: Real estate — personal 3,047,394 64,842 4.29 3,038,068 60,365 4.00
+Added: Consumer 2,115,696 67,908 6.47 2,105,070 67,804 6.48
+Added: Revolving home equity 360,508 13,116 7.34 324,139 12,391 7.69
+Added: Consumer credit card 560,194 37,049 13.34 557,894 38,936 14.03
+Added: Overdrafts 5,761 — — 6,276 — —
+Added: Total loans 17,369,944 518,050 6.01 17,127,271 535,395 6.29
+Added: Loans held for sale 1,663 63 7.64 2,302 86 7.51
+Added: Investment securities:
+Added: government and federal agency obligations 2,605,522 54,074 4.19 1,026,805 19,459 3.81
+Added: Government-sponsored enterprise obligations 55,183 654 2.39 55,643 661 2.39
+Added: State and municipal obligations (A)
+Added: 792,146 8,050 2.05 1,200,371 11,830 1.98
+Added: Mortgage-backed securities 4,714,293 48,712 2.08 5,727,992 60,904 2.14
+Added: Asset-backed securities 1,620,338 28,851 3.59 1,935,324 23,504 2.44
+Added: Other debt securities 247,703 3,456 2.81 434,016 4,236 1.96
+Added: Trading debt securities (A)
+Added: 44,750 1,059 4.77 43,524 1,106 5.11
+Added: Equity securities (A)
+Added: 55,743 1,978 7.16 70,176 1,707 4.89
+Added: Other securities (A)
+Added: 224,964 10,799 9.68 225,049 14,686 13.12
+Added: Total investment securities 10,360,642 157,633 3.07 10,718,900 138,093 2.59
+Added: Federal funds sold 1,118 31 5.59 1,105 37 6.73
+Added: Securities purchased under agreements to resell 819,613 15,934 3.92 322,260 4,055 2.53
+Added: Interest earning deposits with banks 2,211,682 48,885 4.46 2,019,079 55,062 5.48
+Added: Total interest earning assets 30,764,662 740,596 4.85 30,190,917 732,728 4.88
+Added: Allowance for credit losses on loans (164,300) (160,841)
+Added: Unrealized gain (loss) on debt securities (886,273) (1,273,126)
+Added: Cash and due from banks 377,047 274,570
+Added: Premises and equipment, net 498,804 478,656
+Added: Other assets 809,106 930,536
+Added: Total assets $ 31,399,046 $ 30,440,712
+Added: LIABILITIES AND EQUITY:
+Added: Interest bearing deposits:
+Added: Savings $ 1,298,808 335 .05 $ 1,331,486 391 .06
+Added: Interest checking and money market 13,904,216 103,903 1.51 13,188,694 112,018 1.71
+Added: Certificates of deposit of less than $100,000 988,316 17,377 3.55 990,301 20,714 4.21
+Added: Certificates of deposit of $100,000 and over 1,367,563 26,233 3.87 1,543,951 34,988 4.56
+Added: Total interest bearing deposits 17,558,903 147,848 1.70 17,054,432 168,111 1.98
+Added: Federal funds purchased $ 129,120 $ 2,800 4.37 $ 296,629 7,988 5.42
+Added: Securities sold under agreements to repurchase 2,546,156 36,077 2.86 2,383,404 40,731 3.44
+Added: Other borrowings (B)
+Added: 1,688 27 3.23 457 8 3.52
+Added: Total borrowings 2,676,964 38,904 2.93 2,680,490 48,727 3.66
+Added: Total interest bearing liabilities 20,235,867 186,752 1.86 % 19,734,922 216,838 2.21 %
+Added: Non-interest bearing deposits 7,327,945 7,313,278
+Added: Other liabilities 390,618 404,695
+Added: Equity 3,444,616 2,987,817
+Added: Total liabilities and equity $ 31,399,046 $ 30,440,712
+Added: Net interest margin (FTE) $ 553,844 $ 515,890
+Added: Net yield on interest earning assets 3.63 % 3.44 %
+Added: (A) Stated on a fully taxable-equivalent basis using a federal income tax rate of 21%.
+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.