103 added · 101 removed between the two most recent 10-Ks. The risks a company starts — or stops — disclosing are often the story.
Newly disclosed
The domestic economic outlook remains uncertain amid shifting trade/tariff policies, still-elevated inflation and interest rates, softening labor conditions, signs of consumer stress and weakening sentiment, and heightened geopolitical risks.
Total cost of average interest-bearing liabilities decreased 35 basis points to 2.79% during 2025 from 3.14% in 2024 mainly as a result of repricing of interest-bearing deposits and lower rates and average balances of other short-term borrowings which is primarily short-term FHLB borrowings offset by higher rates on mandatorily redeemable securities.
Average short-term borrowings decreased $142.22 million or 62.15% during 2025 while the effective rate paid decreased 209 basis points primarily due to the maturity and pay off of $100 million in borrowings from the Federal Reserve’s Bank Term Funding Program.
Increase (Decrease) due to (Dollars in thousands) Volume Rate Net 2025 compared to 2024 Interest earned on: Investment securities available-for-sale: Taxable $ (1,326) $ 11,966 $ 10,640 Tax-exempt 108 81 189 Mortgages held for sale 42 (11) 31 Loans and leases, net of unearned discount 22,864 (3,226) 19,638 Other investments 770 (865) (95) Total earning assets $ 22,458 $ 7,945 $ 30,403 Interest paid on: Interest-bearing deposits $ 7,910 $ (18,838) $ (10,928) Short-term borrowings: Securities sold under agreements to repurchase (8) (40) (48) Other short-term borrowings (5,927) (1,419) (7,346) Subordinated notes — (184) (184) Long-term debt and mandatorily redeemable securities 24 1,501 1,525 Total interest-bearing liabilities $ 1,999 $ (18,980) $ (16,981) Net interest income - FTE $ 20,459 $ 26,925 $ 47,384 2024 compared to 2023 Interest earned on: Investment securities available-for-sale: Taxable $ (1,443) $ 2,662 $ 1,219 Tax-exempt (582) 89 (493) Mortgages held for sale 57 2 59 Loans and leases, net of unearned discount 25,580 38,328 63,908 Other investments 2,032 230 2,262 Total earning assets $ 25,644 $ 41,311 $ 66,955 Interest paid on: Interest-bearing deposits $ 7,590 $ 36,090 $ 43,680 Short-term borrowings: Securities sold under agreements to repurchase (39) 445 406 Other short-term borrowings 1,694 (156) 1,538 Subordinated notes — 43 43 Long-term debt and mandatorily redeemable securities (428) (299) (727) Total interest-bearing liabilities $ 8,817 $ 36,123 $ 44,940 Net interest income - FTE $ 16,827 $ 5,188 $ 22,015 24 Table of Contents Noninterest Income — Noninterest income decreased in 2025 from 2024 following a decrease in 2024 from 2023.
The increase in 2025 was mainly a result of higher partnership investment gains on sale of renewable energy tax equity investments of $2.07 million, an increase in brokerage commissions and fees of $0.41 million, and increased customer interest rate swap fees of $0.54 million offset by a write-down of $0.77 million on a small business capital investment.
(Dollars in thousands) 2025 2024 2023 2025 $ Change from 2024 2025 % Change from 2024 2024 $ Change from 2023 2024 % Change from 2023 Noninterest expense: Salaries and employee benefits $ 129,564 $ 121,909 $ 115,612 $ 7,655 6.28 % $ 6,297 5.45 % Net occupancy 12,724 11,939 11,090 785 6.58 % 849 7.66 % Furniture and equipment 6,454 5,612 5,653 842 15.00 % (41) (0.73) % Data Processing 29,844 27,567 25,055 2,277 8.26 % 2,512 10.03 % Depreciation — leased equipment 2,415 4,073 7,093 (1,658) (40.71) % (3,020) (42.58) % Professional fees 7,115 7,098 6,705 17 0.24 % 393 5.86 % FDIC and other insurance 5,793 6,142 5,926 (349) (5.68) % 216 3.64 % Business development and marketing 8,855 6,876 7,157 1,979 28.78 % (281) (3.93) % Provision (recovery of provision) for unfunded loan commitments — — 2,566 NM NM NM NM Other 14,075 12,385 14,867 1,690 13.65 % (2,482) (16.69) % Total noninterest expense $ 216,839 $ 203,601 $ 201,724 $ 13,238 6.50 % $ 1,877 0.93 % NM = Not Meaningful Total salaries and employee benefits increased in 2025 from 2024, following an increase in 2024 from 2023.
During 2025, group insurance costs were higher due to overall higher health insurance claims experienced and an increase in employer profit sharing contribution expense due to the utilization of accumulated plan forfeitures to offset employer contributions in the prior year.
The higher expense in 2025 was primarily the result of fewer gains related to the sale of fixed assets and off-lease equipment, higher collection and repossession expenses, and increased intangible asset amortization offset by a reduction in fraud losses.
Demand for renewable energy loans and leases remained accelerated during 2025 from the incentives associated with the Inflation Reduction Act and the shortened phase out period of these incentives with the passage of the One Big Beautiful Bill. 27 Table of Contents Auto and light truck loans decreased $60.56 million or 6.39% in 2025 over 2024.
(Dollars in thousands) 0-1 Year 1-5 Years 5-15 Years Over 15 Years Total Commercial and agricultural Fixed rate $ 70,819 $ 176,490 $ 11,526 $ — $ 258,835 Variable rate 331,005 182,735 24,700 317 538,757 Total commercial and agricultural 401,824 359,225 36,226 317 797,592 Renewable energy Fixed rate 12,726 34,582 52,911 1,849 102,068 Variable rate 196,133 163,793 190,805 — 550,731 Total renewable energy 208,859 198,375 243,716 1,849 652,799 Auto and light truck Fixed rate 197,305 268,914 4,393 — 470,612 Variable rate 166,761 250,503 — — 417,264 Total auto and light truck 364,066 519,417 4,393 — 887,876 Medium and heavy duty truck Fixed rate 93,162 172,984 3,122 — 269,268 Variable rate 293 188 — — 481 Total medium and heavy duty truck 93,455 173,172 3,122 — 269,749 Aircraft Fixed rate 167,142 533,982 13,087 — 714,211 Variable rate 76,094 210,888 85,628 — 372,610 Total aircraft 243,236 744,870 98,715 — 1,086,821 Construction equipment Fixed rate 376,894 790,095 12,344 — 1,179,333 Variable rate 16,949 23,912 941 — 41,802 Total construction equipment 393,843 814,007 13,285 — 1,221,135 Commercial real estate Fixed rate 115,449 451,689 44,930 — 612,068 Variable rate 62,065 422,748 166,454 6,430 657,697 Total commercial real estate 177,514 874,437 211,384 6,430 1,269,765 Residential real estate and home equity Fixed rate 73,344 188,565 184,933 5,298 452,140 Variable rate 62,748 147,217 77,189 1,483 288,637 Total residential real estate and home equity 136,092 335,782 262,122 6,781 740,777 Consumer Fixed rate 51,855 52,593 86 — 104,534 Variable rate 10,170 5,445 6 — 15,621 Total consumer 62,025 58,038 92 — 120,155 Total loans and leases Fixed rate 1,158,696 2,669,894 327,332 7,147 4,163,069 Variable rate 922,218 1,407,429 545,723 8,230 2,883,600 Total loans and leases $ 2,080,914 $ 4,077,323 $ 873,055 $ 15,377 $ 7,046,669 During 2025, approximately 38% of the Bank’s residential mortgage originations were sold into the secondary market.
Charge-off rates in the commercial and agricultural portfolio were modest in 2025 and credit quality remains acceptable, but we continue to see elevated special attention activity within the portfolio, particularly in small dollar accounts.
Nonperforming assets at December 31, 2025 increased from December 31, 2024, mainly due to increases in nonaccrual loans and leases in the auto rental segment of our auto and light truck portfolio, partially offset by lower nonaccrual loans and leases in our construction portfolio.
No longer disclosed
Finally, our commercial and industrial loan outstandings were impacted by the acquisition and subsequent pay-off of three of our larger credit exposures. 26 Table of Contents Renewable energy loans and leases increased $87.56 million or 21.91% in 2024 over 2023.
Net income in 2023, as compared to 2022, was positively impacted by a $15.18 million or 5.76% increase in net interest income and a $7.38 million decrease in the provision for credit losses which was offset by a $17.03 million or 9.22% increase in noninterest expense.
The deposit mix change which began during 2022 carried over into 2023 and 2024 with clients moving their funds from non-maturity accounts to higher yielding certificates of deposit and money market accounts due to the elevated interest rate environment.
Average short-term borrowings increased $15.24 million or 7.13% during 2024 while the effective rate paid increased 63 basis points due to higher Federal Reserve Bank Term Funding Program borrowings offset with decreased FHLB borrowings and lower securities sold under agreements to repurchase balances.
Increase (Decrease) due to (Dollars in thousands) Volume Rate Net 2024 compared to 2023 Interest earned on: Investment securities available-for-sale: Taxable $ (1,443) $ 2,662 $ 1,219 Tax-exempt (582) 89 (493) Mortgages held for sale 57 2 59 Loans and leases, net of unearned discount 25,580 38,328 63,908 Other investments 2,032 230 2,262 Total earning assets $ 25,644 $ 41,311 $ 66,955 Interest paid on: Interest-bearing deposits $ 7,590 $ 36,090 $ 43,680 Short-term borrowings: Securities sold under agreements to repurchase (39) 445 406 Other short-term borrowings 1,694 (156) 1,538 Subordinated notes — 43 43 Long-term debt and mandatorily redeemable securities (428) (299) (727) Total interest-bearing liabilities $ 8,817 $ 36,123 $ 44,940 Net interest income - FTE $ 16,827 $ 5,188 $ 22,015 2023 compared to 2022 Interest earned on: Investment securities available-for-sale: Taxable $ (2,570) $ 777 $ (1,793) Tax-exempt 131 363 494 Mortgages held for sale (150) 88 (62) Loans and leases, net of unearned discount 32,763 90,718 123,481 Other investments (2,856) 3,940 1,084 Total earning assets $ 27,318 $ 95,886 $ 123,204 Interest paid on: Interest-bearing deposits $ 3,179 $ 94,752 $ 97,931 Short-term borrowings: Securities sold under agreements to repurchase (64) 115 51 Other short-term borrowings 3,823 1,661 5,484 Subordinated notes — 624 624 Long-term debt and mandatorily redeemable securities (13) 3,836 3,823 Total interest-bearing liabilities $ 6,925 $ 100,988 $ 107,913 Net interest income - FTE $ 20,393 $ (5,102) $ 15,291 23 Table of Contents Noninterest Income — Noninterest income decreased in 2024 from 2023 following a decrease in 2023 from 2022.
The increase in 2023 was mainly a result of partnership investment gains on sale of renewable energy tax equity investments of $3.43 million, increased customer interest rate swap fees of $1.23 million and higher bank owned life insurance policy claims.
(Dollars in thousands) 2024 2023 2022 2024 $ Change from 2023 2024 % Change from 2023 2023 $ Change from 2022 2023 % Change from 2022 Noninterest expense: Salaries and employee benefits $ 121,909 $ 115,612 $ 105,110 $ 6,297 5.45 % $ 10,502 9.99 % Net occupancy 11,939 11,090 10,728 849 7.66 % 362 3.37 % Furniture and equipment 5,612 5,653 5,448 (41) (0.73) % 205 3.76 % Data Processing 27,567 25,055 22,375 2,512 10.03 % 2,680 11.98 % Depreciation — leased equipment 4,073 7,093 10,023 (3,020) (42.58) % (2,930) (29.23) % Professional fees 7,098 6,705 7,280 393 5.86 % (575) (7.90) % FDIC and other insurance 6,142 5,926 3,625 216 3.64 % 2,301 63.48 % Business development and marketing 6,876 7,157 5,823 (281) (3.93) % 1,334 22.91 % Provision for unfunded loan commitments — 2,566 1,420 NM NM 1,146 80.70 % Other 12,385 14,867 12,867 (2,482) (16.69) % 2,000 15.54 % Total noninterest expense $ 203,601 $ 201,724 $ 184,699 $ 1,877 0.93 % $ 17,025 9.22 % NM = Not Meaningful Total salaries and employee benefits increased in 2024 from 2023, following an increase in 2023 from 2022.
The decrease at December 31, 2024 from December 31, 2023 can be mainly attributed to a slow trucking industry recovery coupled with a selective credit approach to maintain risk adjusted yields, with minimal changes in competitive environment, for existing customers.
Funding increases in 2024 was the result of selective growth within our markets as liquidity concerns which impacted many of our competitors and their willingness to lend into commercial real estate gave us an opportunity as underwriting and yields improved.
(Dollars in thousands) 0-1 Year 1-5 Years 5-15 Years Over 15 Years Total Commercial and agricultural Fixed rate $ 76,187 $ 149,266 $ 9,349 $ — $ 234,802 Variable rate 309,516 180,018 48,638 — 538,172 Total commercial and agricultural 385,703 329,284 57,987 — 772,974 Renewable energy Fixed rate 2,564 36,164 38,992 2,405 80,125 Variable rate 206,942 111,640 88,559 — 407,141 Total renewable energy 209,506 147,804 127,551 2,405 487,266 Auto and light truck Fixed rate 156,648 295,709 5,892 — 458,249 Variable rate 192,071 298,115 — — 490,186 Total auto and light truck 348,719 593,824 5,892 — 948,435 Medium and heavy duty truck Fixed rate 92,913 187,681 6,495 — 287,089 Variable rate 2,038 496 — — 2,534 Total medium and heavy duty truck 94,951 188,177 6,495 — 289,623 Aircraft Fixed rate 156,395 622,262 — — 778,657 Variable rate 78,580 182,335 84,225 — 345,140 Total aircraft 234,975 804,597 84,225 — 1,123,797 Construction equipment Fixed rate 382,518 765,055 19,808 — 1,167,381 Variable rate 9,452 24,071 3,008 — 36,531 Total construction equipment 391,970 789,126 22,816 — 1,203,912 Commercial real estate Fixed rate 106,226 433,321 52,296 238 592,081 Variable rate 45,189 378,152 192,930 6,913 623,184 Total commercial real estate 151,415 811,473 245,226 7,151 1,215,265 Residential real estate and home equity Fixed rate 77,631 179,010 170,640 7,466 434,747 Variable rate 53,155 125,039 66,016 1,114 245,324 Total residential real estate and home equity 130,786 304,049 236,656 8,580 680,071 Consumer Fixed rate 57,546 63,552 93 — 121,191 Variable rate 8,691 3,563 20 — 12,274 Total consumer 66,237 67,115 113 — 133,465 Total loans and leases Fixed rate 1,108,628 2,732,020 303,565 10,109 4,154,322 Variable rate 905,634 1,303,429 483,396 8,027 2,700,486 Total loans and leases $ 2,014,262 $ 4,035,449 $ 786,961 $ 18,136 $ 6,854,808 During 2024, approximately 37% of the Bank’s residential mortgage originations were sold into the secondary market.
Mexico also faces an uncertain inflationary outlook and modest growth prospects. 29 Table of Contents The following discussion focuses on relevant economic conditions and various circumstances impacting the December 31, 2024 allowance for loan and lease losses of each of our loan and lease segments.
Nonperforming assets at December 31, 2024 increased from December 31, 2023, mainly due to increases in nonaccrual loans and leases in the construction equipment portfolio and to a lesser extent, the residential real estate and home equity portfolio offset by a decrease in nonaccrual loans and leases in the commercial and agricultural portfolio.