64 added · 71 removed between the two most recent 10-Ks. The risks a company starts — or stops — disclosing are often the story.
Newly disclosed
Other non-interest expense decreased $10.6 million, or 21.7%, 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.
Professional and other services expense included acquisition related expense of $5.6 million in 2025.
In addition, a $1.5 million reimbursement related to a litigation settlement was recorded in 2025.
During 2025, net interest income grew mainly due to an increase of $38.4 million in interest income earned on investment securities and $19.7 million in interest income on securities purchased under resell agreements, both due to higher average balances and rates, and a decrease of $39.7 million in interest expense on deposits, mainly due to lower average rates.
Net loan charge-offs increased $7.8 million, mainly due to higher credit card and consumer loan net charge-offs in 2024, partly offset by a decrease in business loan net charge-offs. 25 Table of Contents Non-interest income grew 7.4% in 2024, mainly due to increases in trust fees and deposit account fees.
Changes not solely due to volume or rate changes are allocated to rate. 2025 2024 Change due to Change due to (In thousands) Average Volume Average Rate Total Average Volume Average Rate Total Interest income, fully taxable-equivalent basis Loans: Business $ 18,119 $ (25,213) $ (7,094) $ 8,671 $ 24,588 $ 33,259 Real estate - construction and land (2,146) (13,594) (15,740) (2,780) 4,099 1,319 Real estate - business 3,066 (12,389) (9,323) 4,510 8,004 12,514 Real estate - personal 432 8,024 8,456 2,374 10,597 12,971 Consumer 2,721 (2,824) (103) 591 15,607 16,198 Revolving home equity 2,260 (425) 1,835 2,312 211 2,523 Consumer credit card 219 (4,196) (3,977) (35) 864 829 Total interest on loans 24,671 (50,617) (25,946) 15,643 63,970 79,613 Loans held for sale (40) 6 (34) (402) (16) (418) Investment securities: U.S. government and federal agency obligations 44,467 9,132 53,599 14,982 20,893 35,875 Government-sponsored enterprise obligations (12) (2) (14) (208) (154) (362) State and municipal obligations (5,079) 454 (4,625) (10,249) (691) (10,940) Mortgage-backed securities (16,979) (2,148) (19,127) (18,183) 1,977 (16,206) Asset-backed securities (6,017) 15,743 9,726 (21,116) 8,309 (12,807) Other securities (2,588) 1,468 (1,120) 9,165 (13,175) (4,010) Total interest on investment securities 13,792 24,647 38,439 (25,609) 17,159 (8,450) Federal funds sold (13) (5) (18) (619) 9 (610) Securities purchased under agreements to resell 13,090 6,642 19,732 (5,434) 5,143 (291) Interest earning deposits with banks 5,524 (23,165) (17,641) 18,170 22 18,192 Total interest income 57,024 (42,492) 14,532 1,749 86,287 88,036 Interest expense Interest bearing deposits: Savings (16) (95) (111) (76) 93 17 Interest checking and money market 14,474 (30,931) (16,457) 5,890 74,577 80,467 Certificates of deposit of less than $100,000 (69) (8,125) (8,194) 1,619 1,917 3,536 Certificates of deposit of $100,000 and over (3,794) (11,180) (14,974) 843 5,160 6,003 Federal funds purchased (5,321) (1,382) (6,703) (13,553) 509 (13,044) Securities sold under agreements to resell 4,020 (15,044) (11,024) 1,478 6,266 7,744 Other borrowings 27 (13) 14 (39,487) 14 (39,473) Total interest expense 9,321 (66,770) (57,449) (43,286) 88,536 45,250 Net interest income, fully taxable-equivalent basis $ 47,703 $ 24,278 $ 71,981 $ 45,035 $ (2,249) $ 42,786 Net interest income totaled $1.1 billion in 2025, increasing $71.6 million, or 6.9%, compared to $1.0 billion in 2024.
During 2025, interest expense on deposits decreased $39.7 million from 2024 and resulted from a 28 basis point decrease in the overall average rate paid on deposits, slightly offset by an increase in average balances of $475.8 million, or 2.8%.
Additional information about the Company's available for sale debt portfolio repositioning transactions is discussed in Note 3, Investment Securities. 33 Table of Contents Non-Interest Expense % Change (Dollars in thousands) 2025 2024 2023 '25-'24 '24-'23 Salaries $ 531,326 $ 514,262 $ 492,977 3.3 % 4.3 % Employee benefits 97,127 93,600 91,086 3.8 2.8 Data processing and software 133,970 127,390 118,758 5.2 7.3 Net occupancy 54,320 53,223 53,629 2.1 (.8) Professional and other services 48,856 35,077 36,198 39.3 (3.1) Marketing 24,688 22,353 24,511 10.4 (8.8) Equipment 21,508 20,619 19,548 4.3 5.5 Supplies and communication 19,686 19,291 19,420 2.0 (.7) Deposit insurance 10,049 16,482 33,163 (39.0) (50.3) Other 38,296 48,932 41,692 (21.7) 17.4 Total non-interest expense $ 979,826 $ 951,229 $ 930,982 3.0 % 2.2 % Efficiency ratio 55.5 % 57.4 % 59.2 % Salaries and benefits as a % of total non-interest expense 64.1 % 63.9 % 62.7 % Number of full-time equivalent employees 4,667 4,693 4,718 N.M. - Not meaningful.
Supplies and communication expense increased $395 thousand, or 2.0%, while deposit insurance expense decreased $6.4 million mainly due to accrual adjustments in 2024 and 2025 related to the FDIC's special assessment to replenish the Deposit Insurance Fund.
Principal Payments Due (In thousands) In One Year or Less After One Year Through Five Years After Five Years Through Fifteen Years After Fifteen Years Total Commercial: Business $ 2,805,183 $ 3,277,257 $ 356,579 $ 361 $ 6,439,380 Real estate — construction and land 235,148 1,170,557 27,603 4,704 1,438,012 Real estate — business 1,112,788 2,248,289 305,716 7,774 3,674,567 Personal banking: Real estate — personal 173,977 525,558 1,033,192 1,320,708 3,053,435 Consumer 979,752 1,051,861 163,653 1,556 2,196,822 Revolving home equity 15,612 68,248 291,299 — 375,159 Consumer credit card 66,998 200,041 322,655 — 589,694 Overdrafts 4,194 — — — 4,194 Total loans $ 5,393,652 $ 8,541,811 $ 2,500,697 $ 1,335,103 $ 17,771,263 Loans with fixed rates $ 1,498,178 $ 3,511,334 $ 1,084,471 $ 503,924 $ 6,597,907 Loans with floating rates 3,895,474 5,030,477 1,416,226 831,179 11,173,356 Total loans $ 5,393,652 $ 8,541,811 $ 2,500,697 $ 1,335,103 $ 17,771,263 35 Table of Contents The following table shows loan balances at December 31, 2025, segregated between those with fixed interest rates and those with variable rates that fluctuate with an index.
(In thousands) Fixed Rate Loans Variable Rate Loans Total % Variable Rate Loans Business $ 2,116,159 $ 4,323,221 $ 6,439,380 67.1 % Real estate — construction and land 74,956 1,363,056 1,438,012 94.8 Real estate — business 1,392,551 2,282,016 3,674,567 62.1 Real estate — personal 1,594,779 1,458,656 3,053,435 47.8 Consumer 1,389,515 807,307 2,196,822 36.7 Revolving home equity — 375,159 375,159 100.0 Consumer credit card 25,753 563,941 589,694 95.6 Overdrafts 4,194 — 4,194 — Total loans $ 6,597,907 $ 11,173,356 $ 17,771,263 62.9 % Total loans at December 31, 2025 were $17.8 billion, an increase of $551.2 million, or 3.2%, over balances at December 31, 2024.
The increase in the allowance for credit losses on commercial loans was primarily due to weakness in soft commodity prices impacting certain industries and model enhancements related to the forecast, while the allowance for credit losses on personal banking loans increased over the December 31, 2024 allowance due to recent increased loan net charge-off trends impacting expected loss rate assumptions for the consumer credit card, automobile, and other non-real estate consumer portfolios along with forecast model enhancements targeted at the consumer credit card portfolio.
No longer disclosed
During 2023, net interest income grew mainly due to increases of $338.1 million in interest income earned on loans and $88.2 million in interest income earned on deposits with banks, mainly due to higher average rates, partly offset by increases in interest expense on deposits and borrowings of $215.7 million and $110.2 million, respectively, mainly due to higher average rates paid.
Changes not solely due to volume or rate changes are allocated to rate. 2024 2023 Change due to Change due to (In thousands) Average Volume Average Rate Total Average Volume Average Rate Total Interest income, fully taxable-equivalent basis Loans: Business $ 8,671 $ 24,588 $ 33,259 $ 15,048 $ 113,212 $ 128,260 Real estate - construction and land (2,780) 4,099 1,319 12,264 43,081 55,345 Real estate - business 4,510 8,004 12,514 15,551 64,631 80,182 Real estate - personal 2,374 10,597 12,971 4,589 11,262 15,851 Consumer 591 15,607 16,198 840 36,426 37,266 Revolving home equity 2,312 211 2,523 1,023 9,127 10,150 Consumer credit card (35) 864 829 1,663 10,728 12,391 Total interest on loans 15,643 63,970 79,613 50,978 288,467 339,445 Loans held for sale (402) (16) (418) (137) 83 (54) Investment securities: U.S. government and federal agency obligations 14,982 20,893 35,875 (3,589) (12,585) (16,174) Government-sponsored enterprise obligations (208) (154) (362) 205 185 390 State and municipal obligations (10,249) (691) (10,940) (12,406) (3,435) (15,841) Mortgage-backed securities (18,183) 1,977 (16,206) (14,481) 7,436 (7,045) Asset-backed securities (21,116) 8,309 (12,807) (17,460) 17,062 (398) Other securities 9,165 (13,175) (4,010) 2,859 (1,819) 1,040 Total interest on investment securities (25,609) 17,159 (8,450) (44,872) 6,844 (38,028) Federal funds sold (619) 9 (610) 27 220 247 Securities purchased under agreements to resell (5,434) 5,143 (291) (11,987) 2,989 (8,998) Interest earning deposits with banks 18,170 22 18,192 6,630 81,520 88,150 Total interest income 1,749 86,287 88,036 639 380,123 380,762 Interest expense Interest bearing deposits: Savings (76) 93 17 (60) 76 16 Interest checking and money market 5,890 74,577 80,467 (4,055) 125,332 121,277 Certificates of deposit of less than $100,000 1,619 1,917 3,536 610 36,611 37,221 Certificates of deposit of $100,000 and over 843 5,160 6,003 5,231 51,928 57,159 Federal funds purchased (13,553) 509 (13,044) 9,117 14,312 23,429 Securities sold under agreements to resell 1,478 6,266 7,744 (124) 49,266 49,142 Other borrowings (39,487) 14 (39,473) 28,598 9,058 37,656 Total interest expense (43,286) 88,536 45,250 39,317 286,583 325,900 Net interest income, fully taxable-equivalent basis $ 45,035 $ (2,249) $ 42,786 $ (38,678) $ 93,540 $ 54,862 Net interest income totaled $1.0 billion in 2024, increasing $42.1 million, or 4.2%, compared to $998.1 million in 2023.
The higher rates earned on the loan portfolio were partly related to actions taken by the Federal Reserve to raise short-term interest rates during 2022 and 2023, which caused most of the Company's variable rate loan portfolio to re-price higher.
Additional information about the Company's available for sale debt portfolio repositioning transactions is discussed in Note 3, Investment Securities. 32 Table of Contents Non-Interest Expense % Change (Dollars in thousands) 2024 2023 2022 '24-'23 '23-'22 Salaries $ 514,262 $ 492,977 $ 471,260 4.3 % 4.6 % Employee benefits 93,600 91,086 82,787 2.8 10.0 Data processing and software 127,390 118,758 110,692 7.3 7.3 Net occupancy 53,223 53,629 49,117 (.8) 9.2 Professional and other services 35,077 36,198 35,805 (3.1) 1.1 Marketing 22,353 24,511 23,827 (8.8) 2.9 Equipment 20,619 19,548 19,359 5.5 1.0 Supplies and communication 19,291 19,420 18,101 (.7) 7.3 Deposit insurance 16,482 33,163 10,583 (50.3) N.M.
In addition, an increase of $6.4 million in fair value adjustments were recorded on the Company's deferred compensation plan, and deconversion costs of $2.1 million relating to the transition of Commerce Financial Advisors support to LPL Financial's Institution Services platform were recorded in 2023. 33 Table of Contents Income Taxes Income tax expense was $145.1 million in 2024, compared to $134.5 million in 2023 and $132.4 million in 2022.
Principal Payments Due (In thousands) In One Year or Less After One Year Through Five Years After Five Years Through Fifteen Years After Fifteen Years Total Commercial: Business $ 2,523,482 $ 3,174,490 $ 355,202 $ 646 $ 6,053,820 Real estate — construction and land 217,185 1,170,636 17,343 4,737 1,409,901 Real estate — business 1,051,407 2,242,022 361,492 6,297 3,661,218 Personal banking: Real estate — personal 181,888 530,512 1,043,286 1,302,509 3,058,195 Consumer 816,876 1,075,999 178,111 2,137 2,073,123 Revolving home equity 25,443 71,082 260,125 — 356,650 Consumer credit card 67,707 202,156 326,067 — 595,930 Overdrafts 11,266 — — — 11,266 Total loans $ 4,895,254 $ 8,466,897 $ 2,541,626 $ 1,316,326 $ 17,220,103 Loans with fixed rates $ 1,402,660 $ 3,702,809 $ 1,238,635 $ 547,930 $ 6,892,034 Loans with floating rates 3,492,594 4,764,088 1,302,991 768,396 10,328,069 Total loans $ 4,895,254 $ 8,466,897 $ 2,541,626 $ 1,316,326 $ 17,220,103 34 Table of Contents The following table shows loan balances at December 31, 2024, segregated between those with fixed interest rates and those with variable rates that fluctuate with an index.
(In thousands) Fixed Rate Loans Variable Rate Loans Total % Variable Rate Loans Business $ 2,191,585 $ 3,862,235 $ 6,053,820 63.8 % Real estate — construction and land 53,711 1,356,190 1,409,901 96.2 Real estate — business 1,457,232 2,203,986 3,661,218 60.2 Real estate — personal 1,718,123 1,340,072 3,058,195 43.8 Consumer 1,433,050 640,073 2,073,123 30.9 Revolving home equity — 356,650 356,650 100.0 Consumer credit card 27,067 568,863 595,930 95.5 Overdrafts 11,266 — 11,266 — Total loans $ 6,892,034 $ 10,328,069 $ 17,220,103 60.0 % Total loans at December 31, 2024 were $17.2 billion, an increase of $14.6 million, or 0.1%, over balances at December 31, 2023.
The allowance for credit losses on personal banking loans increased over the December 31, 2023 allowance due to recent increased loan net charge-offs and past due trends in the credit card and auto portfolios, partially offset by an increase in the prepayment speeds of personal real estate loans.
The increase was largely due to higher net charge-offs of $7.0 million and $3.5 million on consumer credit card loans and consumer loans, respectively, during 2024, and partially offset by a $2.0 million decrease in net charge-offs on business loans in 2024 compared to 2023.
Non-accrual loans at December 31, 2024 were $18.3 million, an increase of $11.0 million from the prior year, mainly due to an increase in business real estate non-accrual loans of $15.0 million, partly offset by a decrease of $3.5 million in business non-accrual loans.
Interest on securities purchased under resell agreements decreased $9.0 million compared to 2022 due to a decrease in average balances of $793.8 million, partly offset by growth of 43 basis points in the average rate.
The increase in loans during 2024 occurred mainly due to an increase in revolving home equity, business loans and personal real estate loans, partly offset by decreases in business real estate and construction loans.