2 unchanged sentences
The following discussion and analysis should be read in conjunction with the consolidated financial statements and related notes and with the statistical information and financial data appearing in this report as well as the Company's 2024 Annual Report on Form 10-K.
−Removed: Results of operations for the three and six months ended June 30, 2025 are not necessarily indicative of results to be attained for any other period.
+Added: Results of operations for the three and nine months ended September 30, 2025 are not necessarily indicative of results to be attained for any other period.
Pending Acquisition
6 unchanged sentences
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).
−Removed: The transaction remains subject to regulatory approval, approval of FineMark shareholders and other customary closing conditions.
−Removed: Pending these approvals, the transaction is anticipated to close on January 1, 2026.
−Removed: 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.
+Added: The transaction has been approved by the Federal Reserve Bank of Kansas City, the Missouri Division of Finance, and FineMark shareholders.
+Added: The transaction remains subject to customary closing conditions and 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 $3.1 million through the third quarter of 2025.
Forward-Looking Information
26 unchanged sentences
Selected Financial Data
−Removed: Three Months Ended June 30 Six Months Ended June 30
+Added: Three Months Ended September 30 Nine Months Ended September 30
2025 2024 2025 2024
47 unchanged sentences
Results of Operations
−Removed: Three Months Ended June 30 Six Months Ended June 30
+Added: Three Months Ended September 30 Nine Months Ended September 30
(Dollars in thousands) 2025 2024 % change 2025 2024 % change
3 unchanged sentences
Investment securities gains (losses), net 7,885 3,872 N.M.
+Added: 731 6,846 (89.3)
Non-interest expense (244,018) (237,600) 2.7 (726,831) (715,511) 1.6
3 unchanged sentences
$ 141,518 $ 138,007 2.5 % $ 425,589 $ 390,223 9.1 %
−Removed: For the quarter ended June 30, 2025, net income attributable to Commerce Bancshares, Inc.
−Removed: (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.
+Added: For the quarter ended September 30, 2025, net income attributable to Commerce Bancshares, Inc.
+Added: (net income) amounted to $141.5 million, an increase of $3.5 million, or 2.5%, compared to the third quarter of the previous year.
For the current quarter, the annualized return on average assets was 1.78%, the annualized return on average equity was 15.26%, and the efficiency ratio was 55.26%.
−Removed: 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.
−Removed: 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: Diluted earnings per common share was $1.06 per share in the current quarter, an increase of 5.0% compared to $1.01 per share in the third quarter of 2024, and decreased 7.0% compared to $1.14 per share in the previous quarter.
+Added: Compared to the third quarter of last year, net interest income increased $17.1 million, or 6.5%, mainly due to increases in interest income on investment securities and securities purchased under agreements to resell ("resale agreements") of $11.8 million and $4.4 million, respectively, partly offset by a decrease in interest income on loans of $6.2 million.
Interest expense on deposits and interest expense on borrowings also decreased $10.9 million and $4.2 million, respectively.
−Removed: The provision for credit losses increased $129 thousand, or 2.4%, compared to the same quarter in the prior year.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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: The provision for credit losses increased $10.9 million compared to the same quarter in the prior year.
+Added: Non-interest income increased $2.5 million, or 1.6%, compared to the third quarter of 2024, mainly due to increases in trust fees, brokerage fees and deposit account fees of $3.7 million, $2.1 million, and $2.0 million, respectively.
+Added: These increases were partly offset by a decrease in bankcard fee income and a decrease in capital market fees of $2.0 million and $857 thousand, respectively.
+Added: Net gains on investment securities totaled $7.9 million in the current quarter compared to net gains of $3.9 million in the same quarter of last year.
+Added: Securities gains in the current quarter primarily resulted from net gains in fair value of $8.0 million recorded on private equity investments.
+Added: Non-interest expense increased $6.4 million, or 2.7%, over the third quarter of 2024, mainly due to higher salaries expense, professional and other services expense, and data processing and software expense of $4.3 million, $2.5 million, and $1.2 million, respectively, partly offset by non-recurring litigation settlement expense during the third quarter of the prior year.
+Added: Net income for the first nine months of 2025 totaled $425.6 million, an increase of $35.4 million, or 9.1% from the same period last year.
Diluted earnings per common share was $3.18, an increase of 11.2% compared to $2.86 per share in the same period last year.
−Removed: 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: For the first nine months of 2025, the annualized return on average assets was 1.81%, the annualized return on average equity was 16.15% and the efficiency ratio was 55.21%.
Net interest income increased $55.1 million, or 7.1%, over the same period last year.
−Removed: 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: This growth was largely due to increases in interest income on investment securities and securities purchased under agreements to resell ("resale agreements") of $31.5 million and $16.2 million, respectively, partly offset by a decrease in interest income on loans of $23.7 million.
Interest expense on deposits and interest expense on borrowings also decreased $31.2 million and $14.0 million, respectively, over the same period last year.
−Removed: 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.
−Removed: 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.
−Removed: 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.
+Added: The provision for credit losses was $40.1 million for the first nine months of 2025, compared to a provision of $19.4 million in the same period last year.
+Added: Non-interest income increased $26.0 million, or 5.6%, from the first nine months of last year largely due to increases in trust fees, deposit fees, and brokerage fees of $12.5 million, $5.4 million, and $3.4 million, respectively.
+Added: Non-interest expense increased $11.3 million, or 1.6%, over the first nine months of last year mainly due to increases in salaries and benefits expense and professional and other services expense of $11.5 million and $8.2 million, respectively, partly offset by non-recurring litigation settlement expense of $10 million and non-recurring charitable donations of $5.0 million during the prior year.
Net Interest Income
2 unchanged sentences
Analysis of Changes in Net Interest Income
−Removed: Three Months Ended June 30, 2025 vs.
−Removed: 2024 Six Months Ended June 30, 2025 vs.
+Added: Three Months Ended September 30, 2025 vs.
+Added: 2024 Nine Months Ended September 30, 2025 vs.
Change due to Change due to
37 unchanged sentences
Net interest income, fully taxable-equivalent basis $ 9,253 $ 7,879 $ 17,132 $ 34,068 $ 21,018 $ 55,086
−Removed: 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.
−Removed: 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.
−Removed: The increase in net interest income
−Removed: 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.
−Removed: The increase in total interest earned on investment securities (FTE) was mainly the result of higher average balances of U.S.
−Removed: 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: Net interest income in the third quarter of 2025 was $279.5 million, an increase of $17.1 million over the third quarter of 2024.
+Added: On a fully taxable-equivalent (FTE) basis, net interest income totaled $281.8 million in the third quarter of 2025, up $17.1 million over the same period last year and down $658 thousand from the previous quarter.
+Added: The increase in net interest
+Added: income compared to the third quarter of 2024 was mainly due to higher interest income earned on investment securities (FTE) of $11.7 million and lower deposit interest expense of $10.9 million, partly offset by lower interest income earned on loans (FTE) of $6.1 million and deposits at the Federal Reserve of $7.9 million.
+Added: The increase in total interest earned on investment securities (FTE) was mainly the result of higher average balances and rates earned on U.S.
+Added: government and federal agency securities and higher average rates earned on asset-backed securities.
+Added: The decrease in deposit interest expense was mainly due to lower average rates paid, while the decrease in interest earned on deposits at the Federal Reserve was mainly due to lower rates earned.
Interest income earned on loans (FTE) decreased mainly due to lower average rates, partly offset by higher average balances.
−Removed: 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.
−Removed: Total interest income (FTE) increased $2.2 million over the second quarter of 2024.
−Removed: 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 Company's net yield on earning assets (FTE) was 3.64% in the current quarter compared to 3.50% in the third quarter of 2024.
+Added: Total interest income (FTE) increased $2.1 million over the third quarter of 2024.
+Added: Interest income on loans (FTE) was $265.6 million during the third quarter of 2025, a decrease of $6.2 million, or 2.3%, from the same quarter last year.
The decrease in loan interest income from the same quarter of last year was primarily due to a decline of 33 basis points in the average rate earned, partly offset by growth of $468.5 million, or 2.8%, in average loan balances.
−Removed: Most of the decrease in interest income occurred in the construction and land, business real estate and business loan categories.
−Removed: 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 $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.
+Added: Most of the decrease in interest income occurred in the construction and land, business and business real estate loan categories.
+Added: The largest decrease to interest income occurred in construction and land loan interest, which declined $3.8 million due to a 107 basis point decrease in the average rate earned.
Business loan interest income declined $2.7 million due to a 45 basis point decrease in the average rate earned, partly offset by higher average balances of $263.2 million, or 4.4%.
−Removed: Consumer credit card loan interest income declined $784 thousand mainly due to a 78 basis point decrease in the average rate earned.
+Added: Business real estate loan interest income decreased $1.1 million due to a decrease of 36 basis points in the average rate earned, partly offset by higher average balances of $134.8 million, or 3.8%.
+Added: Consumer credit card loan interest income declined $938 thousand mainly due to an 80 basis point decrease in the average rate earned.
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 24 basis point increase in the average rate earned.
−Removed: 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.
+Added: Interest income on investment securities (FTE) was $75.0 million during the third quarter of 2025, which was an increase of $11.7 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 $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: government and federal agency securities, which grew $10.1 million due to an $804.3 million increase in average balances and a 38 basis point increase in the average rate earned.
Interest income related to the Company's U.S.
−Removed: Treasury inflation-protected securities, which is tied to the non-seasonally adjusted Consumer Price Index (CPI-U), decreased $2.8 million from the same quarter last year.
+Added: Treasury inflation-protected securities, which is tied to the non-seasonally adjusted Consumer Price Index (CPI-U), increased $1.6 million over the same quarter last year.
Interest income earned on asset-backed securities grew $3.5 million due to a 103 basis point increase in the average rate earned, partly offset by a decrease in average balances of $58.8 million, or 3.9%.
+Added: Interest earned on other securities increased $1.0 million mainly due to the receipt of $1.3 million in non-accrual interest income from a private equity investment in the third quarter of 2025.
These increases to interest income were partly offset by a decline in interest income on mortgage-backed securities of $2.4 million, driven by lower average balances of $621.0 million, or 12.2%.
−Removed: 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.
−Removed: This increase was higher than the $740 thousand adjustment increasing income in the same quarter last year.
−Removed: 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 $1.3 million mainly due to a $207.8 million, or 27.1%, decrease in average balances.
−Removed: 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.
−Removed: 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.
+Added: In addition, the Company recorded a $314 thousand adjustment to premium amortization at September 30, 2025, which increased interest income and reflected slower forward prepayment speed estimates on mortgage-backed securities.
+Added: This increase was higher than the $286 thousand adjustment decreasing income in the same quarter last year.
+Added: Interest income earned on state and municipal obligations declined $416 thousand mainly due to a $100.5 million, or 11.7%, decrease in average balances.
+Added: Additionally, the average rate earned on investment securities during the three months ended September 30, 2025 increased 47 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 $10.0 billion in both the third quarters of 2025 and 2024.
Interest income on securities purchased under agreements to resell increased $4.4 million over the same quarter last year, due to an increase of 47 basis points in the average rate earned and growth of $375.0 million in the average balance.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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 income on deposits at the Federal Reserve decreased $7.9 million due to declines of 98 basis points in average rate earned and $142.7 million in the average balance.
+Added: The average fully taxable-equivalent yield on total interest earning assets was 4.86% in the third quarter of 2025, down from 4.96% in the third quarter of 2024.
+Added: Total interest expense decreased $15.1 million compared to the third quarter of 2024 due to decreases of $10.9 million in interest expense on interest bearing deposits and $4.2 million in interest expense on borrowings.
+Added: The decrease in deposit interest expense resulted mainly from lower interest expense on certificates of deposit balances of $6.1 million due to an 81 basis point decline in the average rate paid and a decrease of $111.4 million, or 4.4%, in average balances.
Interest expense on interest checking and money market deposit accounts decreased $4.8 million due to a 20 basis point decline in average rates paid, partly offset by an increase of $498.4 million, or 3.8%, in average balances.
1 unchanged sentence
Interest expense on federal funds purchased decreased $1.4 million due to lower average balances of $76.0 million and a 104 basis point decline in the average rate paid.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: For the first six months of 2025, the net interest margin was 3.63% compared to 3.44% for the same period in 2024.
−Removed: 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: Interest expense on customer repurchase agreements decreased $2.8 million due to a 68 basis point decline in the average rate paid, partly offset by
+Added: growth of $167.8 million, or 7.1%, in the average balance.
+Added: The overall average rate incurred on all interest bearing liabilities was 1.87% and 2.22% in the third quarters of 2025 and 2024, respectively.
+Added: Net interest income (FTE) for the first nine months of 2025 was $835.6 million compared to $780.5 million for the same period in 2024.
+Added: For the first nine months of 2025, the net interest margin was 3.63% compared to 3.46% for the same period in 2024.
+Added: Total interest income (FTE) for the first nine months of 2025 increased $9.9 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.
Loan interest income (FTE) decreased $23.5 million, or 2.9%, due to a 29 basis point decrease in the average rate earned, partly offset by a $318.6 million, or 1.9%, increase in average loan balances.
−Removed: 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: 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 interest income the personal real estate loan category.
Interest income on investment securities (FTE) increased $31.3 million mainly due to a 47 basis point increase in the average rate earned and an increase of $1.3 billion in average balances of U.S.
2 unchanged sentences
government and federal agency securities increased $44.7 million due to higher average balances and an increase in the average rate earned, while interest earned on asset-backed securities increased $8.8 million due to higher average rates earned, partly offset by a decrease in average balances.
−Removed: 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.
−Removed: Interest earned on other securities decreased $4.4 million due to declines in both average balances and rates earned.
+Added: These increases in interest income on investment securities were partly offset by decreases in interest earned on mortgage-backed securities and state and municipal obligations of $14.6 million and $4.2 million, respectively, mainly due to decreases in average balances.
+Added: Interest earned on other securities decreased $3.4 million due to a decline in average balances.
Higher interest income of $16.2 million was earned on securities purchased under agreements to resell, which saw growth in both average balances and rates earned.
−Removed: 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.
−Removed: Total interest expense for the first six months of 2025 decreased $30.1 million compared to the same period last year.
+Added: Interest income on balances at the Federal Reserve decreased $14.0 million due to a 101 basis point decline in the average rate earned, partly offset by an $80.3 million increase in the average balance invested.
+Added: Total interest expense for the first nine months of 2025 decreased $45.2 million compared to the same period last year.
Interest expense on deposits decreased $31.2 million, due to a 29 basis point decline in the average rate paid, partly offset by a $458.2 million increase in average balances.
−Removed: 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.
−Removed: The overall cost of total interest bearing liabilities increased to 1.86% compared to 2.21% in the same period last year.
+Added: Interest expense on borrowings decreased $14.0 million due lower interest expense on federal funds purchased of $6.6 million, resulting from lower average balances and rates, while interest expense on securities sold under agreements to repurchase declined $7.5 million due to lower average rates paid, partly offset by higher average balances.
+Added: The overall cost of total interest bearing liabilities decreased 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 June 30 Increase (Decrease) Six Months Ended June 30 Increase (Decrease)
+Added: Three Months Ended September 30 Increase (Decrease) Nine Months Ended September 30 Increase (Decrease)
(Dollars in thousands) 2025 2024 Amount % change 2025 2024 Amount % change
9 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 six month periods ended June 30, 2025 and 2024.
−Removed: Three Months Ended June 30 Six Months Ended June 30
+Added: The table below is a summary of net bank card transaction fees for the nine month periods ended September 30, 2025 and 2024.
+Added: Three Months Ended September 30 Nine Months Ended September 30
(Dollars in thousands) 2025 2024 $ change % change 2025 2024 $ change % change
4 unchanged sentences
Total bank card transaction fees $ 45,551 $ 47,570 $ (2,019) (4.2) % $ 137,506 $ 141,977 $ (4,471) (3.1) %
−Removed: 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%.
−Removed: The increase was mainly due to higher trust fees, capital market fees and gains on sales of assets.
+Added: For the third quarter of 2025, total non-interest income amounted to $161.5 million compared to $159.0 million in the same quarter last year, which was an increase of $2.5 million, or 1.6%.
+Added: The increase was mainly due to higher trust fees, consumer brokerage service fees and deposit account fees.
Trust fees increased $3.7 million, or 6.8%, mainly due to growth of $3.2 million in private client trust fees.
Bank card transaction fees for the current quarter declined $2.0 million, or 4.2%, from the same period last year.
+Added: Net corporate card fees declined $1.7 million mainly due to higher rewards expense, partly offset by higher interchange income.
Net credit card fees decreased $336 thousand mainly due to higher rewards expense.
−Removed: Net corporate card fees declined $270 thousand mainly due to lower interchange income, partly offset by lower rewards expense.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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%.
−Removed: 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: Net debit card fees decreased $107 thousand, while net merchant fees increased $89 thousand.
+Added: Compared to the third quarter of last year, deposit account fees increased $2.0 million, or 8.1%, mainly due to higher corporate cash management fees of $1.8 million.
+Added: Capital market fees decreased $857 thousand, or 14.3%, mainly due to lower underwriting and trading securities income, while consumer brokerage service fees increased $2.1 million, or 45.0%, mainly due to higher life insurance income and annuity fees.
+Added: Other non-interest income decreased $2.5 million, or 14.5%, mainly due to lower gains of $4.7 million on the sales of assets, partly offset by increases in cash sweep commissions, tax credit sales income and international fees of $677 thousand, $625 thousand and $408 thousand, respectively.
+Added: Non-interest income for the first nine months of 2025 was $486.1 million compared to $460.1 million in the first nine months of 2024, which was an increase of $26.0 million, or 5.6%.
+Added: The increase was mainly due to higher trust fees, deposit account fees and gains on the sales of assets.
Trust fees increased $12.5 million, or 7.9%, mainly due to higher private client and institutional trust fees.
−Removed: 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: Bank card transaction fees for the current year declined $4.5 million, or 3.1%, from the same period last year, mainly due to decreases of $3.5 million in net corporate card fees and $1.3 million in net credit card fees, partly offset by an increase in net merchant fees of $678 thousand.
Deposit account fees increased $5.4 million, or 7.3%, mainly due to higher corporate cash management fees.
Capital market fees increased $1.8 million, or 12.1%, mainly due to higher trading securities and underwriting income.
−Removed: 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%.
−Removed: 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.
−Removed: In addition, increases of $765 thousand in fair value adjustments were recorded the Company's deferred compensation plan assets and liabilities.
+Added: Consumer brokerage service fees increased $3.4 million, or 24.9%, mainly due to higher life insurance income, annuity fees and advisory fees.
+Added: Other non-interest income increased $7.1 million, or 15.1%, mainly due to increases of $3.3 million in gains on the sales of assets, $1.4 million in tax credit sales income and $1.2 million in cash sweep commissions.
+Added: In addition, an increase in fair value adjustments of $777 thousand was recorded on the Company's deferred compensation plan assets and liabilities.
Investment Securities Gains (Losses), Net
−Removed: Three Months Ended June 30 Six Months Ended June 30
+Added: Three Months Ended September 30 Nine Months Ended September 30
(In thousands) 2025 2024 2025 2024
4 unchanged sentences
Total investment securities gains (losses), net $ 7,885 $ 3,872 $ 731 $ 6,846
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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: Net gains and losses on investment securities, which were recognized in earnings during the three months ended September 30, 2025 and 2024, are shown in the table above.
+Added: Net securities gains of $7.9 million were reported in the third quarter of 2025, compared to net gains of $3.9 million in the same period last year.
+Added: The net gains in the third quarter of 2025 were mainly comprised of net gains in fair value of $8.0 million recorded on private equity investments.
+Added: These gains were partially offset by net losses of $111 thousand on equity investments.
+Added: The net gains on investment securities for the same quarter last year were primarily comprised of net gains in fair value of $7.4 million recorded on private equity investments and net gains of $2.0 million on sales of private equity investments.
+Added: These gains were largely offset by net losses of $5.4 million on the sale of available for sale securities as part of the planned portfolio repositioning.
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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−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 $943 thousand during the first six months of 2025 and expense of $1.8 million during the first six months of 2024.
+Added: Net gains on investment securities of $731 thousand were recognized in earnings for the nine months ended September 30, 2025, compared to net gains of $6.8 million for the same period in 2024.
+Added: Net gains in the first nine months of 2025 were mainly comprised of net gains in fair value of $3.8 million recorded on private equity investments and net gains of $1.7 million on equity securities.
+Added: These gains were largely offset by net losses of $4.2 million on the sale of available for sale securities.
+Added: Net gains in the first nine months of 2024 were mainly comprised of net gains of $178.1 million on equity investments and net gains in fair value of $20.2 million recorded on private equity investments, largely offset by net losses of $192.9 million on sales of available for sale securities.
+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 expense of $656 thousand during the first nine months of 2025 and expense of $3.4 million during the first nine months of 2024.
Non-Interest Expense
−Removed: Three Months Ended June 30 Increase (Decrease) Six Months Ended June 30 Increase (Decrease)
+Added: Three Months Ended September 30 Increase (Decrease) Nine Months Ended September 30 Increase (Decrease)
(Dollars in thousands) 2025 2024 Amount % change 2025 2024 Amount % change
9 unchanged sentences
Total non-interest expense $ 244,018 $ 237,600 $ 6,418 2.7 % $ 726,831 $ 715,511 $ 11,320 1.6 %
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: Full-time equivalent employees totaled 4,658 at June 30, 2025, compared to 4,724 at June 30, 2024.
+Added: Non-interest expense for the third quarter of 2025 amounted to $244.0 million, an increase of $6.4 million, or 2.7%, compared to expense of $237.6 million in the third 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.
+Added: Salaries and employee benefits expense increased $4.3 million, or 2.8%, mainly due to higher full-time salaries expense of $3.0 million and higher incentive compensation expense of $1.4 million, partly offset by lower healthcare expense of $805 thousand.
+Added: Full-time equivalent employees totaled 4,666 at September 30, 2025, compared to 4,711 at September 30, 2024.
Data processing and software expense increased $1.4 million, or 4.2%, mainly due to higher costs for service providers and software.
−Removed: Net occupancy increased $1.1 million, 8.8%, mainly due to higher depreciation expense and lower external rent income.
−Removed: 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.
−Removed: Marketing expense increased $618 thousand, or 11.5%, and equipment expense increased $304 thousand, or 3.0%.
−Removed: Supplies and communication expense increased $326 thousand, or 7.0%, mainly due to higher postage and bank card reissuance costs.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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: Professional and other services expense, which increased $2.5 million, or 27.8%, included $1.1 million of acquisition related legal and professional services expense.
+Added: Other non-interest expense decreased $1.3 million, or 14.0%, mainly due to a $1.5 million reimbursement during the third quarter of 2025 related to a litigation settlement.
+Added: Non-interest expense amounted to $726.8 million for the first nine months of 2025, an increase of $11.3 million, or 1.6%, over the first nine months of 2024.
+Added: Salaries and benefits expense increased $11.5 million, or 2.5%, mainly due to higher full-time salaries expense and incentive compensation expense.
Data processing and software expense increased $3.8 million, or 4.0%, due to increased costs for service providers and software expense.
−Removed: Professional and other services expense $5.7 million, or 33.2%, and included $1.9 million in acquisition related legal and professional fees.
+Added: Professional and other services expense increased $8.2 million, or 31.4%, and included $3.1 million in acquisition related legal and professional fees.
Occupancy expense increased $1.6 million, or 4.1%, mainly due to higher building depreciation expense and demolition costs.
1 unchanged sentence
Supplies and communication expense increased $502 thousand, or 3.5%, mainly due to higher bank card reissuance costs.
−Removed: Deposit insurance decreased $3.3 million, or 32.0%, mainly due to accrual adjustments in 2024 to the special assessment by the FDIC.
+Added: Deposit insurance decreased $3.2 million, or 23.8%, mainly due to accrual adjustments in 2024 and 2025 to the special assessment by the FDIC.
Other non-interest expense decreased $13.4 million, or 32.5%, mainly due to litigation settlement expense of $10.0 million, net of insurance, and a $5.0 million donation to a related charitable foundation, both recorded in 2024.
+Added: In addition, a $1.5 million reimbursement was recorded in the third quarter of 2025 related to a litigation settlement.
+Added: These decreases were partly offset by higher travel and entertainment expense of $837 thousand and an increase in fair value adjustments of $777 thousand recorded on the Company's deferred compensation plan assets and liabilities.
Provision and Allowance for Credit Losses on Loans and Liability for Unfunded Lending Commitments
−Removed: Three Months Ended Six Months Ended June 30
−Removed: (In thousands) June 30, 2025 Mar.
−Removed: 31, 2025 June 30, 2024 2025 2024
+Added: Three Months Ended Nine Months Ended September 30
+Added: (In thousands) Sept.
+Added: 30, 2025 June 30, 2025 Sept.
+Added: 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 $ 190,998 $ 181,265 $ 178,823 $ 190,998 $ 178,823
−Removed: Three Months Ended Six Months Ended June 30
−Removed: June 30, 2025 Mar.
−Removed: 31, 2025 June 30, 2024 2025 2024
+Added: Three Months Ended Nine Months Ended September 30
+Added: 30, 2025 June 30, 2025 Sept.
+Added: 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: June 30, 2025 Mar.
−Removed: 31, 2025 June 30, 2024
+Added: 30, 2025 June 30, 2025 Sept.
(Dollars in thousands)
12 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 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
+Added: Net loan charge-offs in the third quarter of 2025 amounted to $10.3 million, compared to $9.7 million in the prior quarter and $9.6 million in the third quarter of last year.
+Added: Comp ared to the same period last year, net loan charge-offs in the third quarter of 2025 increased $749 thousand, and increased $638 thousand from the previous quarter.
+Added: The increase from the prior year was mainly driven by increases of $712 thousand and $242 thousand in business and consumer credit card loan net charge-offs, respectively, offset by a decrease of $449 thousand in consumer loan net charge-offs.
+Added: The increase in net loan charge-offs for the three months ended September 30, 2025 from the previous quarter was driven by increases of $402 thousand and $394 thousand in net charge-offs on business real estate and business loans, respectively, partially offset by a decrease of $570 thousand in net charge-offs on consumer credit card loans.
+Added: For the three months ended September 30, 2025, annualized net charge-offs on average consumer credit card loans were 4.59%, compared to 5.08% in the previous quarter and 4.46% in the same period last year.
Consumer loan annualized net charge-offs in the current quarter amounted to .42%, compared to .40% in the prior quarter and .52% in the same period last year.
−Removed: 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.
−Removed: 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.
−Removed: 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 .
−Removed: 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.
−Removed: 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.
−Removed: The increase mainly occurred during the first quarter of 2025, as explained above.
+Added: In the third quarter of 2025 , total annualized net loan charge-offs were .23%, compared to .22% in the previous quarter and .22% in the same period last year.
+Added: For the nine months ended September 30, 2025, total annualized net loan charge-offs were .24%, compared to .22% in the same period last year.
+Added: Net loan charge-offs were $30.8 million in the first nine months of 2025, an increase of $2.6 million over net loan charge-offs of $28.2 million in the first nine months of 2024.
+Added: The increase in net loan charge-offs during the first nine months of 2025 was mainly driven by higher net charge-offs on consumer credit card, consumer, and business loans.
+Added: For the three months ended September 30, 2025 , the provision for credit losses on loans was $20.7 million, which was an increase of $12.8 million from the provision recorded in the prior quarter.
+Added: The provision for the three months ended September 30, 2025 was the result of an increase in the allowance for credit losses on loans.
+Added: Compared to the same period in the prior year, the provision for credit losses on loans for the three months ended September 30, 2025 increased $8.9 million.
+Added: For the nine months ended September 30, 2025, the provision for credit losses on loans was $43.8 million, which was a $17.1 million increase over the $26.7 million provision recorded in the same period last year.
Changes in the provision are driven by changes in the estimate for the allowance for credit losses on loans.
−Removed: 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.
−Removed: 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.
−Removed: The forecast utilized to estimate the allowance for credit losses at June 30, 2025 reflected a slight decline in key macroeconomic variables.
−Removed: 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.
−Removed: 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.
−Removed: 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.
+Added: At September 30, 2025, the allowance for credit losses increased $12.9 million compared to the allowance for credit losses on loans at December 31, 2024.
+Added: The allowance for credit losses on loans increased $6.2 million in the commercial portfolio primarily due to weakness in soft commodity prices impacting certain industries, partially offset by improvement in loss rate assumptions for the Company's construction loans.
+Added: The allowance for credit losses on the Company's personal banking
+Added: portfolio increased $6.8 million due to recent increases in charge-off trends impacting expected loss rate assumptions for the consumer credit card, automobile, and other non-real estate consumer portfolios.
+Added: The forecast utilized to estimate the allowance for credit losses at September 30, 2025 was more pessimistic than the forecast utilized at December 31, 2024 and reflected a slight decline in key macroeconomic variables.
+Added: The forecast did not assume a recession.
+Added: The allowance for credit losses on loans was $175.7 million at September 30, 2025 and was .99%, .95% and .94% of total loans at September 30, 2025, December 31, 2024 and September 30, 2024, respectively.
+Added: In the current quarter, the provision for credit losses on unfunded lending commitments was a benefit of $678 thousand, compared to a benefit of $2.7 million for the three months ended September 30, 2024.
+Added: At September 30, 2025, the liability for unfunded lending commitments was $15.3 million, compared to $18.9 million at December 31, 2024 and $18.0 million at September 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 June 30, 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 September 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: June 30, 2025 December 31, 2024
+Added: September 30, 2025 December 31, 2024
Non-accrual loans $ 16,253 $ 18,278
4 unchanged sentences
Total loans past due 90 days and still accruing interest $ 21,536 $ 24,516
−Removed: Non-accrual loans totaled $18.9 million at June 30, 2025, an increase of $592.0 thousand from the balance at December 31, 2024.
−Removed: The increase occurred mainly in business non-accrual loans, which increased $309 thousand, as well as construction and land loans, which increased $206 thousand.
−Removed: 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.
−Removed: Foreclosed real estate totaled $397 thousand at June 30, 2025, an increase of $54 thousand compared to December 31, 2024.
−Removed: 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.
+Added: Non-accrual loans totaled $16.3 million at September 30, 2025, a decrease of $2.0 million from the balance at December 31, 2024.
+Added: The decrease occurred mainly in revolving home equity non-accrual loans, which decreased $2.0 million.
+Added: At September 30, 2025, non-accrual loans were comprised of business real estate (91.9%), personal real estate (5.3%) business (1.6%), and construction and land (1.2%) loans.
+Added: Foreclosed real estate totaled $790 thousand at September 30, 2025, an increase of $447 thousand compared to December 31, 2024.
+Added: Total loans past due 90 days or more and still accruing interest totaled $21.5 million as of September 30, 2025, a decrease of $3.0 million from December 31, 2024.
Balances by class for non-accrual loans and loans past due 90 days and still accruing interest are shown in the "Delinquent and non-accrual loans" section in Note 2 to the consolidated financial statements.
3 unchanged sentences
Although these loans are generally identified as potential problem loans, they may never become non-performing.
−Removed: Such loans totaled $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%.
+Added: Such loans totaled $274.6 million at September 30, 2025 compared to $330.3 million at December 31, 2024, resulting in a decrease of $55.7 million, or 16.9%.
(In thousands)
−Removed: June 30, 2025 December 31, 2024
+Added: September 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 June 30, 2025, the Company held $138.1 million of loans that had been modified during the six months ended June 30, 2025.
+Added: At September 30, 2025, the Company held $168.3 million of loans that had been modified during the nine months ended September 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 8.0% of total loans outstanding at June 30, 2025.
−Removed: The largest component of construction and land loans was commercial construction, which increased $6.1 million during the six months ended June 30, 2025.
−Removed: 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.
−Removed: (Dollars in thousands) June 30,
+Added: The Company's portfolio of construction and land loans, as shown in the table below, amounted to 8.1% of total loans outstanding at September 30, 2025.
+Added: The largest component of construction and land loans was commercial construction, which increased $24.9 million during the nine months ended September 30, 2025.
+Added: At September 30, 2025, multi-family residential construction loans totaled approximately $556.3 million, or 45.5%, of the commercial construction loan portfolio, compared to $526.6 million, or 44.0%, at December 31, 2024.
+Added: (Dollars in thousands) September 30,
December 31, 2024
5 unchanged sentences
Real Estate – Business Loans
−Removed: Total business real estate loans were $3.8 billion at June 30, 2025 and comprised 21.3% of the Company's total loan portfolio.
+Added: Total business real estate loans were $3.7 billion at September 30, 2025 and comprised 21.1% 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 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.
−Removed: (Dollars in thousands) June 30,
+Added: At September 30, 2025, 32.5% 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) September 30,
December 31, 2024
9 unchanged sentences
Total real estate - business loans $ 3,745,000 100.0 % 21.1 % $ 3,661,218 100.0 % 21.3 %
−Removed: 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.
+Added: Information about the credit quality of the Company's business real estate loan portfolio as of September 30, 2025 and December 31, 2024 is provided in the table below.
(Dollars in thousands) Pass Special Mention Substandard Non-Accrual Total
−Removed: June 30, 2025
+Added: September 30, 2025
Owner-occupied $ 1,166,454 $ 21,108 $ 31,083 $ 124 $ 1,218,769
20 unchanged sentences
Revolving Home Equity Loans
−Removed: The Company had $364.4 million in revolving home equity loans at June 30, 2025 that were collateralized by residential real estate.
+Added: The Company had $364.2 million in revolving home equity loans at September 30, 2025 that were collateralized by residential real estate.
Most of these loans (94.4%) 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 June 30, 2025, the outstanding
−Removed: 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 $3.7 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.
−Removed: The weighted average FICO score for the total portfolio balance at June 30, 2025 is 775.
+Added: As of September 30, 2025, the
+Added: outstanding principal of loans with an original LTV higher than 80% was $28.6 million, or 8.0% of the portfolio, compared to $31.9 million as of December 31, 2024.
+Added: Total revolving home equity loan balances over 30 days past due were $1.4 million at September 30, 2025 and $5.6 million at December 31, 2024, and there was no outstanding balance for revolving home equity loans on non-accrual status at September 30, 2025 compared to $2.0 million at December 31, 2024.
+Added: The weighted average FICO score for the total portfolio balance at September 30, 2025 is 777.
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.
4 unchanged sentences
Consumer Loans
−Removed: 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 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: Losses on these loans have historically been low, and the Company saw net recoveries of $16 thousand for the first six months of 2025.
−Removed: Private banking loans comprised 38.4% of the consumer loan portfolio at June 30, 2025.
−Removed: 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.
−Removed: 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 $1.4 million in the first six months of 2025 and were .3% of the average balances of these loans at June 30, 2025.
+Added: The consumer loans category is mostly comprised of private banking loans and automobile loans.
+Added: Private banking loans comprised of 39.2% of the consumer loan portfolio at September 30, 2025.
+Added: The Company's private banking loans are mostly executive lines of credit, which are secured primarily by assets held by the Company's trust department, and insurance premium finance loans, which are primarily secured by life insurance policies.
+Added: Automobile loans, which include direct and indirect product lines, comprised 35.8% of the consumer loan portfolio at September 30, 2025, and outstanding balances for auto loans were $778.2 million and $776.7 million at September 30, 2025 and December 31, 2024, respectively.
+Added: The balances over 30 days past due amounted to $9.3 million at September 30, 2025 and $14.4 million at December 31, 2024, respectively, and comprised 1.2% of the outstanding balances of these loans at September 30, 2025 and 1.9% at December 31, 2024.
+Added: For the nine months ended September 30, 2025, $282.9 million of new auto loans were originated, compared to $260.6 million during the first nine months of 2024.
+Added: At September 30, 2025, the automobile loan portfolio had a weighted average FICO score of 756, and net charge-offs on auto loans were .9% 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 9.7% of the consumer loan portfolio at September 30, 2025.
+Added: Losses on these loans have historically been low, and the Company saw net recoveries of $135 thousand for the first nine months of 2025.
+Added: The remaining portion of the Company's consumer loan portfolio is comprised of healthcare financing, boat, RV, motorcycle, other equipment, and unsecured consumer loans.
+Added: Net charge-offs on consumer loans, other than automobile loans, totaled $2.3 million in the first nine months of 2025 and were .3% of the average balances of these loans at September 30, 2025.
Consumer Credit Card Loans
The Company offers low promotional rates on selected consumer credit card products.
−Removed: 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.
+Added: Out of a portfolio at September 30, 2025 of $575.3 million in consumer credit card loans outstanding, approximately $125.2 million, or 21.8%, carried a low promotional rate.
Within the next six months, $51.8 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: June 30, 2025 December 31, 2024
+Added: September 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 $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.
+Added: The Company's energy lending portfolio is comprised of lending to the petroleum and natural gas sectors and totaled $302.0 million, or 1.7% of total loans at September 30, 2025, a decrease of $36.0 million from December 31, 2024, as shown in the table below.
(In thousands)
−Removed: June 30, 2025 December 31, 2024 Unfunded commitments at June 30, 2025
+Added: September 30, 2025 December 31, 2024 Unfunded commitments at September 30, 2025
Upstream activities $ 225,141 $ 274,265 $ 156,158
7 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 $1.7 billion and $1.6 billion at June 30, 2025 and December 31, 2024, respectively.
−Removed: Additional unfunded commitments at June 30, 2025 totaled $2.3 billion.
−Removed: 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.
−Removed: 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: The balance of SNC loans totaled $1.6 billion at both September 30, 2025 and December 31, 2024.
+Added: Additional unfunded commitments at September 30, 2025 totaled $2.4 billion.
+Added: Income tax expense was $41.2 million in the third quarter of 2025, compared to $42.4 million in the second quarter of 2025 and $38.2 million in the third quarter of 2024.
+Added: The Company's effective tax rate, including the effect of non-controlling interest, was 22.5% in the third quarter of 2025, 21.8% in the second quarter of 2025, and 21.7% in the third quarter of 2024.
+Added: The increase in the effective tax rate compared to the prior quarter was mostly due to state tax law changes enacted in the prior quarter that decreased the effective tax rate.
+Added: The increase in the effective tax rate compared to the third quarter of 2024 was mostly due to higher state and local income taxes.
On July 4, 2025, the One Big Beautiful Act ("OBBBA") was enacted in the United States.
4 unchanged sentences
Balance Sheet
−Removed: Total assets of the Company were $32.3 billion at June 30, 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 $31.1 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.
−Removed: At June 30, 2025, total loans increased $445.4 million or 2.6%, compared to balances at December 31, 2024.
−Removed: The increase was mainly due to growth in business and business real estate loans of $274.9 million and $96.6 million, respectively.
−Removed: The increase in business loans was mainly due growth in commercial and industrial lending.
−Removed: 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.
−Removed: These increases were partly offset by a decrease in consumer credit cards loans of $19.8 million.
−Removed: Total available for sale debt securities, excluding fair value adjustments, decreased $447.3 million a t June 30, 2025 compared to December 31, 2024.
−Removed: 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.
−Removed: 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.
−Removed: At June 3 0, 2025, the duration of the available for sale investment portfolio
−Removed: was 4.2 years, and maturities and pay downs of approximately $1.3 billion are expected to occur during the next 12 months.
−Removed: The Company does not have any investment securities classified as held-to-maturity.
−Removed: Total deposits at June 30, 2025 amounted to $25.5 billion, an increase of $200.4 million compared to December 31, 2024.
+Added: Total assets of the Company were $32.3 billion at September 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 September 30, 2025 and $30.9 billion at December 31, 2024, and consisted of 57% in loans and 32% in investment securities at September 30, 2025.
+Added: At September 30, 2025, total loans increased $566.7 million or 3.3%, compared to balances at December 31, 2024.
+Added: The increase was mainly due to growth in business, business real estate, and construction loans of $361.0 million, $83.8 million, and $23.8 million, respectively.
+Added: The increase in business loans was mainly due to growth in commercial and industrial, commercial credit card and tax-free lending.
+Added: In addition, consumer loans increased $98.5 million, mainly due to growth in private banking loans.
+Added: These increases were partially offset by a decrease in consumer credit card loans of $20.6 million.
+Added: Total available for sale debt securities, excluding fair value adjustments, decreased $440.3 million a t September 30, 2025 compared to December 31, 2024.
+Added: Available for sale debt security sales, maturities and pay downs during this period totaled $1.5 billion , partly offset by pu rchases of available for sale debt securities during this period of $991.7 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 $450.6 million, $186.1 million and $74.2 million, respectively, at
+Added: September 30, 2025 compared to December 31, 2024.
+Added: These decreases were partly offset by growth of $309.0 million in U.S.
+Added: government and federal agency obligations.
+Added: At September 3 0, 2025, the duration of the available for sale investment portfolio was 4.4 years, and maturities and pay downs of approximately $1.3 billion are expected to occur during the next 12 months.
+Added: Total deposits at September 30, 2025 amounted to $25.5 billion, an increase of $164.4 million compared to December 31, 2024.
The increase in deposits largely resulted from an increase in interest checking and money market deposit balances of $807.9 million.
This increase was partly offset by a decrease in demand deposits of $661.0 million, mainly in business demand deposits (decrease of $688.3 million).
−Removed: 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.
+Added: The Company’s borrowings totaled $2.5 billion at September 30, 2025, a decrease of $444.5 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: June 30, 2025 June 30, 2024 December 31, 2024
+Added: September 30, 2025 September 30, 2024 December 31, 2024
Liquid assets:
3 unchanged sentences
Total $ 11,476,254 $ 11,809,739 $ 11,764,406
−Removed: Interest earning balances at the Federal Reserve Bank, which have overnight maturities and are used for general liquidity purposes, totaled $2.6 billion at June 30, 2025 and decreased $289 thousand from December 31, 2024.
−Removed: 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.
−Removed: 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.
+Added: Interest earning balances at the Federal Reserve Bank, which have overnight maturities and are used for general liquidity purposes, totaled $2.5 billion at September 30, 2025 and decreased $147 thousand from December 31, 2024.
+Added: At September 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 $9.0 billion at September 30, 2025 and included an unrealized net loss of $688.5 million.
The total net unrealized loss included net losses of $640.7 million on mortgage-backed and asset-backed securities and $52.9 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 4.2 years at June 30, 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 4.4 years at September 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: June 30, 2025 June 30, 2024 December 31, 2024
+Added: September 30, 2025 September 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 69.8% for the six months ended June 30, 2025.
−Removed: 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.
+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 70.1% for the nine months ended September 30, 2025.
+Added: Core customer deposits, defined as non-interest bearing, interest checking, savings, and money market deposit accounts totaled $23.0 billion and represented 90.5% of the Company's total deposits at September 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 $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.
−Removed: While the Company considers core consumer and
−Removed: 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 $136.2 million at September 30, 2025 compared to December 31, 2024, primarily due to an increase in commercial
+Added: deposits of $451.4 million, partly offset by a decrease in consumer deposits of $265.9 million.
+Added: 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.
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 June 30, 2025, the Company's resale agreements totaled $850.0 million and mature from 2028 through 2030.
+Added: At September 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 $874.6 million in fair value at June 30, 2025.
−Removed: Certificates of deposit of $100,000 or greater totaled $1.4 billion at June 30, 2025.
−Removed: These deposits are normally considered more volatile and higher costing, and comprised 5.4% of total deposits at June 30, 2025.
+Added: This collateral totaled $875.1 million in fair value at September 30, 2025.
+Added: Certificates of deposit of $100,000 or greater totaled $1.4 billion at September 30, 2025.
+Added: These deposits are normally considered more volatile and higher costing, and comprised 5.6% of total deposits at September 30, 2025.
(In thousands)
−Removed: June 30, 2025 June 30, 2024 December 31, 2024
+Added: September 30, 2025 September 30, 2024 December 31, 2024
Core deposit base:
9 unchanged sentences
(In thousands)
−Removed: June 30, 2025 June 30, 2024 December 31, 2024
+Added: September 30, 2025 September 30, 2024 December 31, 2024
Federal funds purchased $ 137,660 $ 113,630 $ 123,715
2 unchanged sentences
Total $ 2,482,335 $ 2,192,430 $ 2,926,814
−Removed: 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.
−Removed: At June 30, 2025, the Company had approved lines of credit totaling $4.5 billion.
+Added: Federal funds purchased, which totaled $137.7 million at September 30, 2025, are unsecured overnight borrowings obtained mainly from upstream correspondent banks with which the Company maintains approved lines of credit.
+Added: At September 30, 2025, the Company had approved lines of credit totaling $4.6 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 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.
+Added: Total repurchase agreements at September 30, 2025 were comprised of non-insured customer funds totaling $2.3 billion, and securities pledged as collateral for these retail agreements totaled $2.4 billion at September 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 June 30, 2025.
+Added: There were no advances outstanding from the FHLB at September 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 June 30, 2025.
−Removed: June 30, 2025
+Added: The following table reflects the collateral
+Added: value of assets pledged, borrowings, and letters of credit outstanding, in addition to the estimated future funding capacity available to the Company at September 30, 2025.
+Added: September 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 $229.7 million during the first six 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 $421.8 million during the first nine 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 $378.8 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 $400.3 million.
−Removed: 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).
+Added: Growth in the loan portfolio used cash of $598.9 million and purchases of securities under agreements to resell (net of repayments) used cash of $225.0 million.
These uses of cash were partly balanced by sales, maturities, and pay downs (net of purchases) of investment securities, which provided cash of $462.5 million.
Investing activities are somewhat unique to financial institutions in that, while large sums of cash flow are normally used to fund growth in investment securities, loans, or other bank assets, they are normally dependent on the financing activities described below.
−Removed: Financing activities used cash of $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.
−Removed: This decrease was largely offset by a net increase of $230.6 million in deposits.
−Removed: 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.
+Added: Financing activities used cash of $400.3 million, largely resulting from federal funds purchased and securities sold under agreements to repurchases, which used cash of $453.7 million during the first nine months of 2025, partly offset by a net increase of $250.4 million in deposits.
+Added: Cash dividend payments (including distributions to non-controlling interest) and purchases of treasury stock used cash of $114.0 million and $92.3 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 June 30, 2025 and December 31, 2024, as shown in the following table.
−Removed: (Dollars in thousands) June 30, 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 September 30, 2025 and December 31, 2024, as shown in the following table.
+Added: (Dollars in thousands) September 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 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.
−Removed: At June 30, 2025, 1,904,943 shares remained available for purchase under the current Board authorization.
+Added: During the nine months ended September 30, 2025, the Company purchased 1,862,967 shares at an average price of $62.85 in open market purchases and through stock-based compensation transactions.
+Added: At September 30, 2025, 1,486,812 shares remained available for purchase under the Board authorization in place at that date.
+Added: On October 31, 2025, the share repurchase authorization was increased to 5,000,000 shares.
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 second 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 third 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 June 30, 2025 totaled $15.9 billion (including $6.0 billion in unused, approved credit card lines).
+Added: The most significant of these are loan commitments, which at September 30, 2025 totaled $16.2 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 $596.0 million and $1.7 million, respectively, at June 30, 2025.
+Added: The contractual amount of standby and commercial letters of credit totaled $631.8 million and $1.8 million, respectively, at September 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 June 30, 2025, the liability for unfunded
−Removed: lending commitments totaled $16.0 million.
+Added: At September 30, 2025, the liability
+Added: for unfunded lending commitments totaled $15.3 million.
See further discussion of the liability for unfunded lending commitments in Note 2 to the consolidated financial statements.
1 unchanged sentence
These credits are either resold to third parties at a profit or retained for use by the Company.
−Removed: During the first six months of 2025, purchases and sales of tax credits amounted to $118.2 million and $94.6 million, respectively.
−Removed: 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.
−Removed: 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.
−Removed: The Company continued to maintain a strong liquidity position throughout the first six months of 2025.
+Added: During the first nine months of 2025, purchases and sales of tax credits amounted to $160.2 million and $125.4 million, respectively.
+Added: Fees from sales of tax credits were $4.9 million for the nine months ended September 30, 2025, compared to $3.5 million in the same period last year.
+Added: At September 30, 2025, the Company expected to fund outstanding purchase commitments of $16.7 million during the remainder of 2025 and had purchase commitments of $545.8 million that it expects to fund from 2026 through 2029.
+Added: The Company continued to maintain a strong liquidity position throughout the first nine 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 six months of 2025 and 2024.
+Added: The table below is a summary of segment pre-tax income results for the first nine months of 2025 and 2024.
(Dollars in thousands)
1 unchanged sentence
Consolidated Totals
−Removed: Six Months Ended June 30, 2025
+Added: Nine Months Ended September 30, 2025
Net interest income $ 378,958 $ 393,453 $ 67,729 $ 840,140 $ (11,434) $ 828,706
4 unchanged sentences
Income before income taxes $ 171,804 $ 284,035 $ 139,341 $ 595,180 $ (46,646) $ 548,534
−Removed: Six Months Ended June 30, 2024
+Added: Nine Months Ended September 30, 2024
Net interest income $ 384,278 $ 380,476 $ 66,390 $ 831,144 $ (57,545) $ 773,599
7 unchanged sentences
Percent (7.3) % 4.7 % 9.0 % 1.8 % (40.9) % 8.5 %
−Removed: 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.
−Removed: 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%.
−Removed: 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.
−Removed: This decrease was partly offset by lower deposit interest expense of $5.3 million.
+Added: For the nine months ended September 30, 2025, income before income taxes for the Consumer segment decreased $13.6 million, or 7.3%, compared to the first nine months of 2024.
+Added: The decrease in income before income taxes was due to declines in net interest income of $5.3 million, or 1.4%, and non-interest income of $1.4 million, or 1.8%, and increases in non-interest expense of $5.1 million, or 2.1%, and the provision for credit losses of $1.8 million.
+Added: Net interest income declined due to lower net allocated funding credits assigned to the Consumer segment's loan and deposit portfolios of $11.7 million and loan interest income of $1.1 million.
+Added: These decreases were partly offset by lower deposit interest expense of $7.5 million.
Non-interest income decreased mainly due to lower net bank card fees (mainly credit and debit card fees).
1 unchanged sentence
In addition, allocated support costs increased due to higher allocated costs for retail administration and operations.
−Removed: 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.
−Removed: 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: The increase in the provision for credit losses over the first nine months of 2024 was mainly due to higher auto and consumer credit card loan net charge-offs, partly offset by lower other vehicle and equipment loan net charge-offs.
+Added: For the nine months ended September 30, 2025, income before income taxes for the Commercial segment increased $12.8 million, or 4.7%, compared to the same period in the previous year.
This increase was mainly due to higher net interest income and non-interest income, partly offset by higher non-interest expense.
−Removed: 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.
−Removed: These increases to income were partly offset by lower loan
−Removed: interest income of $19.9 million.
+Added: Net interest income increased $13.0 million, or 3.4%, mainly due to lower interest expense on deposits and customer repurchase agreements of $20.1 million and $6.9 million,
+Added: respectively, coupled with higher net allocated funding credits of $12.9 million.
+Added: These increases to income were partly offset by lower loan interest income of $27.5 million.
Non-interest income increased $15.7 million, or 8.0%, 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 $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.
−Removed: The provision for credit losses decreased $126 thousand from the same period last year, mainly due to commercial and industrial loan net recoveries.
−Removed: 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.
−Removed: Net interest income decreased $229 thousand, or .5%, mainly due to a $5.0 million decrease in net allocated funding credits.
−Removed: This decrease was largely offset by a $3.0 million increase in loan interest income and a $1.8 million decrease deposit interest expense.
−Removed: 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 $15.3 million, or 5.0%, 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 branch employee expense.
+Added: The provision for credit losses increased $596 thousand over the same period last year, mainly due to higher commercial and industrial loan net charge-offs.
+Added: Wealth segment pre-tax profitability for the nine months ended September 30, 2025 increased $11.5 million, or 9.0%, over the same period in the previous year.
+Added: Net interest income increased $1.3 million, or 2.0%, mainly due to $5.9 million increase in loan interest income and a $2.9 million decrease deposit interest expense.
+Added: These increases were partly offset by a $7.4 million decrease in net allocated funding credits.
+Added: Non-interest income increased $16.1 million, or 9.0%, over the prior year largely due to higher private client and institutional trust fees and brokerage fees (mainly life insurance, annuity and advisory fees).
Non-interest expense increased $5.8 million, or 4.9%, mainly due to higher salaries and benefits, data processing and software, and allocated support costs for information technology.
3 unchanged sentences
The pre-tax profitability in this category was $32.2 million higher than in the same period last year.
−Removed: Unallocated securities losses were $7.2 million in the first six months of 2025 compared to gains of $3.0 million in 2024.
−Removed: 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: Unallocated securities gains were $731 thousand in the first nine months of 2025 compared to gains of $6.8 million in 2024.
+Added: Also, the unallocated provision for credit losses decreased $18.2 million, primarily driven by an increase in the provision for credit losses on loans, partly offset by a decrease in the liability for unfunded lending commitments, which are both not allocated to the segments for management reporting purposes.
Net charge-offs are allocated to the segments when incurred for management reporting purposes.
−Removed: 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.
+Added: The provision for credit losses on loans in the first nine months of 2025 was $43.8 million, or $12.9 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 $26.7 million, or $1.6 million lower than net charge-offs, due to a decrease in the allowance for credit losses on loans.
−Removed: For the six months ended June 30, 2025, the Company's provision on unfunded lending commitments was a benefit of $2.9 million.
−Removed: Additionally, net interest income increased $32.6 million and non-interest income increased $202 thousand, while non-interest expense decreased $14.8 million.
+Added: For the nine months ended September 30, 2025, the Company's provision on unfunded lending commitments was a benefit of $3.6 million.
+Added: Additionally, net interest income increased $46.1 million, while non-interest expense decreased $15.0 million.
+Added: These increases to pre-tax profitability were partly offset by a decrease in non-interest income $4.5 million.
Impact of Recently Issued Accounting Standards
13 unchanged sentences
Other than the inclusion of additional disclosures, the adoption is not expected to have a significant effect on the Company's consolidated financial statements.
+Added: Internal-Use Software Development Costs The FASB issued ASU 2025-06, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40):
+Added: Targeted Improvement to the Accounting for Internal-Use Software" in September 2025.
+Added: The amendments in this Update are intended to modernize the accounting for internal-use software by eliminating references to software development project stages, making the guidance neutral to various development methodologies, including those currently in use and those that may be developed in the future.
+Added: This Update is effective for annual and interim periods beginning after December 15, 2027.
+Added: Early adoption is permitted as of the beginning of an annual reporting period.
+Added: The amendments may be applied on a prospective, modified retrospective or full retrospective basis.
+Added: The adoption is not expected to have a significant effect on the Company's consolidated financial statements.
AVERAGE BALANCE SHEETS — AVERAGE RATES AND YIELDS
−Removed: Three Months Ended June 30, 2025 and 2024
−Removed: Second Quarter 2025
−Removed: Second Quarter 2024
+Added: Three Months Ended September 30, 2025 and 2024
+Added: Third Quarter 2025
+Added: Third Quarter 2024
(Dollars in thousands)
62 unchanged sentences
AVERAGE BALANCE SHEETS — AVERAGE RATES AND YIELDS
−Removed: Six Months Ended June 30, 2025 and 2024
−Removed: Six Months 2025
−Removed: Six Months 2024
+Added: Nine Months Ended September 30, 2025 and 2024
+Added: Nine Months 2025
+Added: Nine Months 2024
(Dollars in thousands)
62 unchanged sentences
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.