Allowance for Credit Losses

9 Months Ended

Sep. 30, 2025

The following tables present the changes in the allowance for loan and lease losses by portfolio segment for the periods indicated:


	Three Months Ended September 30, 2025
	Commercial Real Estate		Commercial		Consumer		Total
	(In Thousands)
Balance at June 30, 2025	$	73,115	$	46,469	$	7,141	$	126,725
Charge-offs (1)	(926)		(15,694)		(42)		(16,662)
Recoveries	107		578		120		805
Merger Day 1 CECL provision	31,820		17,891		19,776		69,487
Provision (credit) for loan and lease losses excluding unfunded commitments	5,040		6,637		(2,808)		8,869
Provision (credit) for PCD loan and lease losses excluding unfunded commitments	38,744		24,294		1,473		64,511
Balance at September 30, 2025	$	147,900	$	80,175	$	25,660	$	253,735
(1) Excludes the impact of Merger Day 1 purchase accounting that resulted in $15.8 million of charge-offs during the three months ended September 30, 2025.


	Three Months Ended September 30, 2024
	Commercial Real Estate		Commercial		Consumer		Total
	(In Thousands)
Balance at June 30, 2024	$	82,152	$	33,386	$	6,212	$	121,750

Charge-offs	—		(4,164)		(19)		(4,183)
Recoveries	—		367		8		375
Provision (credit) for loan and lease losses excluding unfunded commitments	(6,971)		16,632		(287)		9,374
Balance at September 30, 2024	$	75,181	$	46,221	$	5,914	$	127,316



	Nine Months Ended September 30, 2025
	Commercial Real Estate		Commercial		Consumer		Total
	(In Thousands)
Balance at December 31, 2024	$	74,171	$	44,169	$	6,743	$	125,083
Charge-offs (1)	(4,449)		(26,830)		(55)		(31,334)
Recoveries	107		2,427		220		2,754
Merger Day 1 CECL provision	31,820		17,891		19,776		69,487
Provision (credit) for loan and lease losses excluding unfunded commitments	7,507		18,224		(2,497)		23,234
Provision (credit) for PCD loan and lease losses excluding unfunded commitments	38,744		24,294		1,473		64,511
Balance at September 30, 2025	$	147,900	$	80,175	$	25,660	$	253,735
(1) Excludes the impact of Merger Day 1 purchase accounting that resulted in 15.8 million of charge-offs during the nine months ended September 30, 2025.



	Nine Months Ended September 30, 2024
	Commercial Real Estate		Commercial		Consumer		Total
	(In Thousands)
Balance at December 31, 2023	$	81,410	$	29,557	$	6,555	$	117,522

Charge-offs	(4,425)		(13,933)		(38)		(18,396)
Recoveries	—		1,086		34		1,120
Provision (credit) for loan and lease losses excluding unfunded commitments	(1,804)		29,511		(637)		27,070
Balance at September 30, 2024	$	75,181	$	46,221	$	5,914	$	127,316

The allowance for credit losses for unfunded credit commitments was $13.7 million, and $6.0 million at September 30, 2025 and December 31, 2024, respectively and includes the provision of $8.4 million for credit losses on unfunded commitments during the three months ended September 30, 2025.

Provision for Credit Losses

The provision (credit) for credit losses are set forth below for the periods indicated:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
	(In Thousands)
Provision (credit) for loan and lease losses:
Commercial real estate	$	5,040	$	(6,971)	$	7,507	$	(1,804)
Commercial	6,637		16,632		18,224		29,511
Consumer	(2,808)		(287)		(2,497)		(637)

Total provision (credit) for loan and lease losses	8,869		9,374		23,234		27,070
Merger Day 1 CECL provision
Commercial real estate	31,820		—		31,820		—
Commercial	17,891		—		17,891		—
Consumer	19,776		—		19,776		—
Total Merger Day 1 CECL provision	69,487		—		69,487		—
Unfunded commitments
Merger Day 1 unfunded commitments provision	8,415		—		8,415		—
Provision (credit) for unfunded commitments	725		(4,542)		(669)		(9,208)
Total provision (credit) for unfunded commitments	9,140		(4,542)		7,746		(9,208)
Investment securities available-for-sale	32		(172)		47		(255)
Total provision (credit) for credit losses	$	87,528	$	4,660	$	100,514	$	17,607

Allowance for Credit Losses Methodology

Management has established a methodology to determine the adequacy of the ACL that assesses the risks and losses expected on the loan and lease portfolio and unfunded commitments. Additions to the ACL are made by charges to the provision for credit losses. Losses on loans and leases are charged off against the allowance when all or a portion of a loan or lease is considered uncollectible. Subsequent recoveries on loans previously charged off, if any, are credited to the allowance when realized.

To calculate the allowance for loans collectively evaluated, management uses models developed by a third party. The Bank’s core ACL process uses CRE, C&I, and retail lifetime loss rate models to calculate the expected losses over the life of the loan based on exposure at default loan attributes and reasonable, supportable economic forecasts. The exposure at default

considers the current unpaid balance, prepayment assumptions and expected utilization assumptions. Key assumptions used in the models include portfolio segmentation, prepayments, and the expected utilization of unfunded commitments, among others. The portfolios are segmented by loan level attributes such as loan type, loan size, date of origination, and delinquency status to create homogenous loan pools. Pool level metrics are calculated and loss rates are subsequently applied to the pools as the loans have like characteristics. Prepayment assumptions are embedded within the models and are based on the same data used for model development and incorporate adjustments for reasonable and supportable forecasts. Model development data and developmental time periods vary by model, but all use at least ten years of historical data and capture at least one recessionary period. Expected utilization is based on current utilization and a LEQ factor. LEQ varies by current utilization and provides a reasonable estimate of expected draws and borrower behavior. Assumptions and model inputs are reviewed in accordance with model monitoring practices and as information becomes available.

Loans acquired in connection with the Merger have losses estimated using historical loss rate models based on the historical performance of various loan segments, which is segmented primarily by FDIC code, estimates of each segment’s weighted average life, and statistical model to capture the impact of future economic conditions on the base loss rates.

The ACL estimate for both the banks core model as well as the legacy Berkshire model incorporates reasonable and supportable forecasts of various macro-economic variables over the remaining life of loans and leases. The development of the reasonable and supportable forecast assumes each macro-economic variable will revert to long-term expectations, with reversion characteristics unique to specific economic indicators and forecasts. Reversion towards long-term expectations generally begins two to three years from the forecast start date and largely completes within the first five years. Management elected to use multiple economic forecasts in determining the reserve to account for economic uncertainty. The forecasts include various projections of gross domestic product, interest rates, property price indices, and employment measures. Scenario weighting and model parameters are updated to reflect facts and circumstances as of the financial statement date.

As of September 30, 2025, management continued to apply qualitative adjustments to the Company’s models. These adjustments are designed to address model limitations and are generally targeted to specific risks within the certain portfolios (e.g., office and specialty vehicle) based on recent collateral valuations and performance trends. Additionally, portfolio level metrics such as delinquency, population of adversely graded loans, non-accruals, etc. are used to inform management’s evaluation of the credit risk in the portfolio and adjustments are made as appropriate. These adjustments included both positive and negative adjustments with a total impact to the provision of $22.6 million at September 30, 2025, of which $3.5 million is related to the legacy Berkshire portfolio. Management reviews these factors on a quarterly basis as market conditions and segment performance evolve.

Specific reserves are established for loans individually evaluated for impairment when amortized cost basis is greater than the discounted present value of expected future cash flows or, in the case of collateral-dependent loans, when there is an excess of a loan's amortized cost basis over the fair value of its underlying collateral. When loans and leases do not share risk characteristics with other financial assets they are evaluated individually. Individually evaluated loans are reviewed quarterly with adjustments made to the calculated reserve as necessary.

The general allowance for loan and lease losses was $184.3 million as of September 30, 2025 and $107.5 million as of December 31, 2024. The increase is primarily due to the merger with Berkshire Bank loans in the third quarter, which added $84.4 million to the allowance for loan and lease losses.

The specific allowance for loan and lease losses was $69.4 million as of September 30, 2025, compared to $17.5 million as of December 31, 2024. The specific allowance increased $51.9 million during the nine months ended September 30, 2025, primarily due to the Merger, which added specific reserves totaling $46.6 million, $28.2 million for commercial real estate loans, $18.2 million for commercial and industrial loans, and $0.2 million for consumer loans.

As of September 30, 2025, management believes the methodology for calculating the allowance is sound and the allowance provides a reasonable basis for determining and reporting on expected losses over the lifetime of the Company’s loan portfolios.

Credit Quality Assessment

At the time of loan origination, a rating is assigned based on the capacity to pay and general financial strength of the borrower, the value of assets pledged as collateral, and the evaluation of third party support such as a guarantor. The Company continually monitors the credit quality of the loan portfolio using all available information. The officer responsible for handling each loan is required to initiate changes to risk ratings when changes in facts and circumstances occur that warrant an upgrade

or downgrade in a loan rating. Based on this information, loans demonstrating certain payment issues or other weaknesses may be categorized as delinquent, adversely risk-rated, nonperforming and/or put on nonaccrual status. Additionally, in the course of resolving such loans, the Company may choose to restructure the contractual terms of certain loans to match the borrower's ability to repay the loan based on their current financial condition. If a restructured loan meets certain criteria, it may be categorized as a modified loan.

The Company reviews numerous credit quality indicators when assessing the risk in its loan portfolio. For all loans, the Company utilizes an eight-grade loan rating system, which assigns a risk rating to each borrower based on a number of quantitative and qualitative factors associated with a loan transaction. Factors considered include industry and market conditions; position within the industry; earnings trends; operating cash flow; asset/liability values; debt capacity; guarantor strength; management and controls; financial reporting; collateral; and other considerations. In addition, the Company's independent loan review group evaluates the credit quality and related risk ratings in all loan portfolios. The results of these

reviews are reported to the Risk Committee of the Board of Directors on a periodic basis and annually to the Board of Directors. For the consumer loans, the Company heavily relies on payment status for calibrating credit risk.

The ratings categories used for assessing credit risk in the commercial real estate, multi-family mortgage, construction, commercial, equipment financing, condominium association and other consumer loan and lease classes are defined as follows:

1 -4 Rating—Pass

Loan rating grades "1" through "4" are classified as "Pass," which indicates borrowers are performing in accordance with the terms of the loan and are less likely to result in loss due to the capacity of the borrower to pay and the adequacy of the value of assets pledged as collateral.

5 Rating—OAEM

Borrowers exhibit potential credit weaknesses or downward trends deserving management's attention. If not checked or corrected, these trends will weaken the Company's asset and position. While potentially weak, currently these borrowers are marginally acceptable; no loss of principal or interest is envisioned.

6 Rating—Substandard

Borrowers exhibit well defined weaknesses that jeopardize the orderly liquidation of debt. Substandard loans may be inadequately protected by the current net worth and paying capacity of the obligors or by the collateral pledged, if any. Normal repayment from the borrower is in jeopardy. Although no immediate loss of principal is envisioned, there is a distinct possibility that a partial loss of interest and/or principal will occur if the deficiencies are not corrected. Collateral coverage may be inadequate to cover the principal obligation.

7 Rating—Doubtful

Borrowers exhibit well-defined weaknesses that jeopardize the orderly liquidation of debt with the added provision that the weaknesses make collection of the debt in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Serious problems exist to the point where partial loss of principal is likely.

8 Rating—Definite Loss

Borrowers deemed incapable of repayment. Loans to such borrowers are considered uncollectible and of such little value that continuation as active assets of the Company is not warranted.

Assets rated as "OAEM," "substandard" or "doubtful" based on criteria established under banking regulations are collectively referred to as "criticized" assets.

Credit Quality Information

The following table presents the amortized cost basis of loans in each class by credit quality indicator and year of origination as of September 30, 2025.


	September 30, 2025
	2025		2024		2023		2022		2021		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total
			(In Thousands)
Commercial Real Estate
Pass	$	402,953	$	523,525	$	795,627	$	1,355,173	$	1,186,218	$	2,653,248	$	45,164	$	15,057	$	6,976,965
OAEM	—		1,789		8,901		36,175		51,271		58,551		750		393		157,830
Substandard	—		23,105		3,979		60,773		10,579		86,351		2,424		—		187,211

Total	402,953		548,419		808,507		1,452,121		1,248,068		2,798,150		48,338		15,450		7,322,006


	September 30, 2025
	2025	2024	2023	2022	2021	Prior	Revolving Loans	Revolving Loans Converted to Term Loans	Total
		(In Thousands)
Current-period gross writeoffs	—	—	—	—	—	1,467	—	—	1,467
Multi-Family Mortgage
Pass	91,778	101,283	120,371	592,148	301,076	839,979	7,094	37,900	2,091,629
OAEM	—	—	—	10,923	—	1,206	—	—	12,129
Substandard	—	—	—	2,863	11,477	12,239	—	—	26,579

Total	91,778	101,283	120,371	605,934	312,553	853,424	7,094	37,900	2,130,337
Current-period gross writeoffs	—	—	—	—	—	2,220	—	—	2,220
Construction
Pass	114,889	118,783	189,288	225,096	15,949	1,159	4,014	—	669,178
OAEM	—	—	—	44,539	—	—	—	—	44,539
Substandard	—	—	—	27,217	18,795	—	—	—	46,012

Total	114,889	118,783	189,288	296,852	34,744	1,159	4,014	—	759,729
Commercial
Pass	249,312	333,508	324,860	204,309	176,870	190,558	1,085,700	6,432	2,571,549
OAEM	—	6,749	—	20,654	174	5,006	49,537	357	82,477
Substandard	—	2,503	4,797	5,217	8,520	11,819	42,034	737	75,627
Doubtful	—	—	—	—	—	—	—	11	11
Total	249,312	342,760	329,657	230,180	185,564	207,383	1,177,271	7,537	2,729,664
Current-period gross writeoffs	—	405	210	5,145	72	20	967	—	6,819
Equipment Financing
Pass	153,241	258,341	287,346	232,495	105,490	114,360	2,900	4,436	1,158,609
OAEM	—	—	—	1,140	672	—	—	—	1,812
Substandard	—	3,168	12,224	7,704	2,876	4,235	—	11,546	41,753
Doubtful	—	—	—	1,856	—	18	—	—	1,874
Total	153,241	261,509	299,570	243,195	109,038	118,613	2,900	15,982	1,204,048
Current-period gross writeoffs	—	550	4,976	4,538	896	1,888	—	—	12,848


	September 30, 2025
	2025		2024		2023		2022		2021		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total
			(In Thousands)
Other Consumer
Pass	10,009		22,311		24,639		11,378		6,397		12,201		79,931		17		166,883
OAEM	—		5		3		28		—		2		10		—		48
Substandard	5		68		59		46		51		84		85		—		398

Total	10,014		22,384		24,701		11,452		6,448		12,287		80,026		17		167,329
Current-period gross writeoffs	9		—		1		—		—		11		—		—		21
Total
Pass	1,022,182		1,357,751		1,742,131		2,620,599		1,792,000		3,811,505		1,224,803		63,842		13,634,813
OAEM	—		8,543		8,904		113,459		52,117		64,765		50,297		750		298,835
Substandard	5		28,844		21,059		103,820		52,298		114,728		44,543		12,283		377,580
Doubtful	—		—		—		1,856		—		18		—		11		1,885
Total	$	1,022,187	$	1,395,138	$	1,772,094	$	2,839,734	$	1,896,415	$	3,991,016	$	1,319,643	$	76,886	$	14,313,113

As of September 30, 2025, there were no loans categorized as definite loss.

For residential mortgage and home equity loans, the borrowers' credit scores at origination contribute as a reserve metric in the retail loss rate model.


	At September 30, 2025
	2025		2024		2023		2022		2021		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total
			(In Thousands)
Residential
Credit Scores
Over 700	$	259,152	$	349,012	$	510,742	$	548,127	$	262,109	$	783,493	$	4,551	$	—	$	2,717,186
661 - 700	6,793		18,631		24,350		36,038		14,452		76,984		8		—		177,256
600 and below	1,040		4,635		13,484		14,175		10,231		47,929		—		—		91,494
Data not available*	17,314		6,970		5,849		105,540		6,091		149,724		624		—		292,112
Total	$	284,299	$	379,248	$	554,425	$	703,880	$	292,883	$	1,058,130	$	5,183	$	—	$	3,278,048
Current-period gross writeoffs	—		—		—		—		—		1		—		—		1
Home Equity
Credit Scores
Over 700	$	1,920	$	1,539	$	3,857	$	3,081	$	864	$	6,019	$	537,977	$	2,642	$	557,899
661 - 700	87		25		162		187		—		557		57,437		1,195		59,650
600 and below	55		90		676		76		—		318		26,461		2,736		30,412
Data not available*	2		—		14		—		—		213		2,556		—		2,785
Total	$	2,064	$	1,654	$	4,709	$	3,344	$	864	$	7,107	$	624,431	$	6,573	$	650,746
Current-period gross writeoffs	—		—		—		—		—		—		10		—		10

_______________________________________________________________________________

* Primarily represents loans made to trusts and purchased mortgages.

The following tables present the recorded investment in loans in each class as of December 31, 2024, by credit quality indicator.


	December 31, 2024
	2024		2023		2022		2021		2020		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total
	(In Thousands)
Commercial Real Estate
Pass	$	147,877	$	395,770	$	677,054	$	740,805	$	368,755	$	1,493,198	$	45,933	$	16,620	$	3,886,012
OAEM	22,505		—		21,923		3,611		3,210		41,704		—		411		93,364
Substandard	—		—		3,653		5,416		—		38,820		—		—		47,889

Total	170,382		395,770		702,630		749,832		371,965		1,573,722		45,933		17,031		4,027,265
Current -period gross writeoffs	—		—		552		—		—		3,874		—		—		4,426

Multi-Family Mortgage
Pass	16,197		67,890		244,419		243,977		153,294		572,534		5,937		38,001		1,342,249
OAEM	—		—		11,606		—		—		3,855		—		—		15,461


	December 31, 2024
	2024		2023		2022		2021		2020		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total
	(In Thousands)
Substandard	—		—		2,863		11,477		—		15,746		—		—		30,086

Total	16,197		67,890		258,888		255,454		153,294		592,135		5,937		38,001		1,387,796
Construction
Pass	50,569		24,642		169,636		37,832		1,649		221		8,754		—		293,303
OAEM	—		—		7,750		—		—		—		—		—		7,750


Total	50,569		24,642		177,386		37,832		1,649		221		8,754		—		301,053
Commercial
Pass	171,978		256,267		138,946		108,892		35,090		87,430		383,725		6,962		1,189,290
OAEM	—		—		—		48		—		284		1,711		—		2,043
Substandard	—		4		—		392		1,197		12,001		6,091		365		20,050
Doubtful	—		—		—		—		—		2		—		329		331
Total	171,978		256,271		138,946		109,332		36,287		99,717		391,527		7,656		1,211,714
Current-period gross writeoffs	13		4		3,612		100		1,523		1,596		—		—		6,848
Equipment Financing
Pass	287,280		359,803		289,487		147,244		83,664		85,286		425		5,881		1,259,070
OAEM	—		—		1,572		930		—		—		—		—		2,502
Substandard	—		7,681		3,455		2,918		725		2,771		—		11,530		29,080
Doubtful	—		—		4,283		—		—		15		—		—		4,298
Total	287,280		367,484		298,797		151,092		84,389		88,072		425		17,411		1,294,950
Current-period gross writeoffs	840		2,801		4,740		1,430		5,219		4,166		—		—		19,196






Other Consumer
Pass	373		176		84		873		—		2,057		60,789		15		64,367



Total	373		176		84		873		—		2,057		60,789		15		64,367
Current-period gross writeoffs	7		—		3		—		1		12		—		—		23
Total
Pass	674,274		1,104,548		1,519,626		1,279,623		642,452		2,240,726		505,563		67,479		8,034,291
OAEM	22,505		—		42,851		4,589		3,210		45,843		1,711		411		121,120
Substandard	—		7,685		9,971		20,203		1,922		69,338		6,091		11,895		127,105
Doubtful	—		—		4,283		—		—		17		—		329		4,629
Total	$	696,779	$	1,112,233	$	1,576,731	$	1,304,415	$	647,584	$	2,355,924	$	513,365	$	80,114	$	8,287,145

As of December 31, 2024, there were no loans categorized as definite loss.


	At December 31, 2024
	2024		2023		2022		2021		2020		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total
	(In Thousands)
Residential
Credit Scores
Over 700	$	119,843	$	75,397	$	167,352	$	204,738	$	110,663	$	341,746	$	7,936	$	—	$	1,027,675
661 - 700	6,444		7,330		7,734		6,915		4,622		12,583		—		—		45,628
600 and below	2,040		1,111		7,711		4,976		5,016		13,024		—		—		33,878
Data not available*	31		537		1,349		881		—		4,753		—		—		7,551
Total	$	128,358	$	84,375	$	184,146	$	217,510	$120,301		$	372,106	$	7,936	$	—	$	1,114,732

Home Equity
Credit Scores
Over 700	$	1,696	$	4,686	$	3,492	$	1,402	$	529	$	7,003	$	316,187	$	5,446	$	340,441
661 - 700	166		400		21		38		—		326		18,700		505		20,156
600 and below	—		405		132		—		18		373		12,121		1,195		14,244
Data not available*	—		—		—		—		—		4		2,566		—		2,570
Total	$	1,862	$	5,491	$	3,645	$	1,440	$	547	$	7,706	$	349,574	$	7,146	$	377,411
Current-period gross writeoffs	$	—	$	—	16		$	—	$	—	$	—	$	—	$	—	16

_______________________________________________________________________________

* Primarily represents loans made to trusts and purchased mortgages.

Age Analysis of Past Due Loans and Leases

The following table presents an age analysis of the amortized cost basis in loans and leases as of September 30, 2025.


	At September 30, 2025
	Past Due										Past Due Greater Than 90 Days and Accruing
	31-60 Days		61-90 Days		Greater Than 90 Days		Total		Current					Total Loans and Leases			Non-accrual		Non-accrual with No Related Allowance
	(In Thousands)
Commercial real estate loans:
Commercial real estate	$	10,856	$	1,194	$	14,103	$	26,153	$	7,295,853		$	7,322,006		$	3,612	$	30,213	$	1,487
Multi-family mortgage	152		1,055		17,334		18,541		2,111,796			2,130,337			14,340		2,994		—
Construction	—		—		535		535		759,194			759,729			—		535		—
Total commercial real estate loans	11,008		2,249		31,972		45,229		10,166,843			10,212,072			17,952		33,742		1,487
Commercial loans and leases:
Commercial	5,003		2,386		15,249		22,638		2,707,026			2,729,664			1,629		14,035		3,659
Equipment financing	13,567		4,415		36,084		54,066		1,149,982			1,204,048			200		41,793		4,387

Total commercial loans and leases	18,570		6,801		51,333		76,704		3,857,008			3,933,712			1,829		55,828		8,046
Consumer loans:
Residential mortgage	5,352		1,929		8,229		15,510		3,262,538			3,278,048			3,238		6,597		520
Home equity	1,732		720		1,238		3,690		647,056			650,746			380		2,220		—
Other consumer	164		62		413		639		166,690			167,329			171		243		—
Total consumer loans	7,248		2,711		9,880		19,839		4,076,284			4,096,123			3,789		9,060		520
Total loans and leases	$	36,826	$	11,761	$	93,185	$	141,772	$	18,100,135		$	18,241,907		$	23,570	$	98,630	$	10,053

The Company did not recognize any interest income on nonaccrual loans for the three and nine months ended September 30, 2025.

The following tables present an age analysis of the recorded investment in originated and acquired loans and leases as of December 31, 2024.


	At December 31, 2024
	Past Due										Loans and Leases Past Due Greater Than 90 Days and Accruing				Non-accrual with No Related Allowance
	31-60 Days		61-90 Days		Greater Than 90 Days		Total		Current					Total Loans and Leases					Non-accrual
	(In Thousands)

Commercial real estate loans:
Commercial real estate	$	6,570	$	1,685	$	12,153	$	20,408	$	4,006,857		$	4,027,265		$	629	$	11,525	$	683
Multi-family mortgage	2,863		—		6,469		9,332		1,378,464			1,387,796			—		6,596		6,605
Construction	—		—		—		—		301,053			301,053			—		—		—
Total commercial real estate loans	9,433		1,685		18,622		29,740		5,686,374			5,716,114			629		18,121		7,288
Commercial loans and leases:
Commercial	783		1,693		695		3,171		1,208,543			1,211,714			—		14,676		326
Equipment financing	6,140		2,508		27,070		35,718		1,259,232			1,294,950			—		31,509		2,180

Total commercial loans and leases	6,923		4,201		27,765		38,889		2,467,775			2,506,664			—		46,185		2,506
Consumer loans:
Residential mortgage	2,015		—		2,057		4,072		1,110,660			1,114,732			130		3,999		2,359
Home equity	818		233		135		1,186		376,225			377,411			52		1,043		—
Other consumer	4		—		1		5		64,362			64,367			—		1		—
Total consumer loans	2,837		233		2,193		5,263		1,551,247			1,556,510			182		5,043		2,359
Total loans and leases	$	19,193	$	6,119	$	48,580	$	73,892	$	9,705,396		$	9,779,288		$	811	$	69,349	$	12,153

Individually Evaluated Loans and Leases

Loans and leases which do not share similar risk characteristics with other loans are individually evaluated for credit losses. A loan is individually evaluated when, based on current information and events, it is probable that the Company will be unable to collect all amounts due (both interest and principal) according to the contractual terms of the loan agreement. The loans and leases risk-rated "substandard" or worse are individually evaluated. Specific reserves are established for loans and leases with deterioration in the present value of expected future cash flows or, in the case of collateral-dependent loans and leases, any increase in the loan or lease amortized cost basis over the fair value of the underlying collateral discounted for estimated selling costs. In contrast, the loans and leases which share similar risk characteristics and are not included in the individually evaluated population are collectively evaluated for credit losses.

The following tables present information regarding individually evaluated and collectively evaluated allowance for loan and lease losses for credit losses on loans and leases at the dates indicated.


	At September 30, 2025
	Commercial Real Estate		Commercial		Consumer		Total
	(In Thousands)
Allowance for Loan and Lease Losses:

Individually evaluated	$	41,210	$	28,049	$	183	$	69,442
Collectively evaluated	106,690		52,126		25,477		184,293
Total	$	147,900	$	80,175	$	25,660	$	253,735









Loans and Leases:

Individually evaluated	$	265,178	$	126,783	$	2,150	$	394,111
Collectively evaluated	9,946,894		3,806,929		4,093,973		17,847,796
Total	$	10,212,072	$	3,933,712	$	4,096,123	$	18,241,907


	At December 31, 2024
	Commercial Real Estate		Commercial		Consumer		Total
	(In Thousands)
Allowance for Loan and Lease Losses:

Individually evaluated	$	3,566	$	13,967	$	13	$	17,546
Collectively evaluated	70,605		30,202		6,730		107,537
Total loans and leases	$	74,171	$	44,169	$	6,743	$	125,083










Loans and Leases:
Individually evaluated	$	77,983	$	47,819	$	2,626	$	128,428
Collectively evaluated	5,638,131		2,458,845		1,553,884		9,650,860








Total loans and leases	$	5,716,114	$	2,506,664	$	1,556,510	$	9,779,288

Loan Modifications

The following tables present the amortized cost basis of loan modifications made to borrowers experiencing financial difficulty during the periods indicated.


	Three Months Ended September 30, 2025
	Number of Loans	Amortized Cost		% of Total Class of Loans and Leases		Financial Effect
		(In thousands)
Maturity Extension:

C&I	2	$	7,216	0.18	%	One loan was given a 12 month maturity extension to assist the borrower and another loan was given a 5 month maturity extension. The financial effect was deemed "de minimis".




Combination - Maturity Extension and Significant Payment Delays

C&I	4	2,246		0.06	%	These loans were given 6 month maturity extension and 6 months of interest-only payments.







Total	6	$	9,462


	Three Months Ended September 30, 2024
	Number of Loans	Amortized Cost		% of Total Class of Loans and Leases		Financial Effect
		(In thousands)


Significant Payment Delays:
C&I	2	$	2,551	0.24	%	These loans were given principal payment deferrals for one year. The financial effect was deemed "de minimis."
Combination - Maturity Extension and Interest Rate Reduction:
Commercial Real Estate	1	$	8,284	0.20	%	This loan was given a 3 year maturity extension with a 5.0% pay rate and 7.0% accrue rate. The financial effect was deemed "de minimis."


Home Equity	1	$	269	0.07	%	This loan was reamortized over 30 years and extended the prior maturity date 20 years, with a reduction in rate to 6.8% fixed The financial effect was deemed "de minimis."
Combination - Maturity Extension, Interest Rate Reduction, and Significant Payment Delay:
C&I	1	$	604	0.06	%	Line of credit renewed for one year, interest only, with a reduction in rate from 10.3% variable to 7.5% fixed. The financial effect was deemed "de minimis."
Total	5	$	11,708



	Nine Months Ended September 30, 2025
	Number of Loans	Amortized Cost		% of Total Class of Loans and Leases		Financial Effect
		(In thousands)
Maturity Extension:

C&I	6	$	8,710	0.22	%	Loans were given multi-month extensions up to 15 months to assist the borrowers. The financial effect was deemed "de minimis".





Significant Payment Delays:
CRE	1	3,827		0.04	%	This loan was given principal payments deferrals for 12 months. The financial effect was deemed "de minimis."


Combination - Maturity Extension and Significant Payment Delays

C&I	4	2,246		0.06	%	These loans were given 6 month maturity extension and 6 months of interest-only payments. The financial effect was deemed "de minimis."

Combination - Maturity Extension and Interest Rate Reduction:


C&I	2	$	267	0.01	%	These loans were given 36 month extensions, and reductions in their stated interest rates of 2.3%. The financial effect was deemed "de minimis."



Total	13	$	15,050


	Nine Months Ended September 30, 2024
	Number of Loans	Amortized Cost		% of Total Class of Loans and Leases		Financial Effect
		(In thousands)
Maturity Extension:
CRE
C&I	2	$	123	0.01	%	One loan was given 6 months of interest-only payments and 6 months added to the term of the loan and the other loan was given a 2 month deferment of payments along with 13 months added to the term of the loan. The financial effect was deemed "de minimis".









Significant Payment Delays
C&I	14	15,490		1.43	%	Some of these loans and letters of credit were given a two quarter (6 month) payment forbearance, while one was given a 30 month term extension, and another was given one year of payment deferrals. The financial effect was deemed "de minimis".
Combination - Maturity Extension and Significant Payment Delays:
C&I	2	1,586		0.15	%	These loans were given 6 months maturity extensions and 6 months of interest-only payments. The financial effect was deemed "de minimis".
Combination - Maturity Extension and Interest Rate Reduction:


Commercial Real Estate	1	8,284		0.20	%	This loan was given a maturity extension of 3 years with a 5.0% pay rate and 7.0% accrue rate. The financial effect was deemed "de minimis."
C&I	2	110		0.01	%	These loans were given 25 month extensions, and reductions in their stated interest rates of 7.5%. The financial effect was deemed "de minimis."
Home Equity	1	269		0.07	%	This loan was reamortized over 30 years and extended the prior maturity date 20 years, with a reduction in rate to 6.8% fixed. The financial effect was deemed "de minimis."
Combination - Maturity Extension and Interest Rate Reduction, and Significant Payment Delay:
C&I	1	604		0.06	%	Line of credit renewed for one year, interest only, with a reduction in rate from 10.3% variable to 7.5% fixed. The financial effect was deemed "de minimis."
Total	23	$	26,466

The following tables present the aging analysis of loan modifications made to borrowers experiencing financial difficulty during the periods indicated.


	Three Months Ended September 30, 2025
	Current		30-60 Days Past Due		61-90 Days Past Due		90+ Days Past Due		Modified
	(In thousands)
Total Modifications	$	9,462			—		—		—

	Three Months Ended September 30, 2024
	Current		30-60 Days Past Due		61-90 Days Past Due		90+ Days Past Due		Modified
	(In thousands)
Total Modifications	$	11,708	$	—	$	—	$	—	$	—



	Nine Months Ended September 30, 2025
	Current		30-60 Days Past Due	61-90 Days Past Due	90+ Days Past Due	Modified
	(In thousands)
Total Modifications	$	14,132	80	—	837	—



	Nine Months Ended September 30, 2024
	Current		30-60 Days Past Due		61-90 Days Past Due		90+ Days Past Due		Modified
	(In thousands)
Total Modifications	$	26,379	$	60,862	$	27,031	$	—	$	—

Beacon Financial Corp 10-Q