MICHIGAN CITY, Ind., July 22, 2026 (GLOBE NEWSWIRE) -- (NASDAQ GS: HBNC) – Horizon Bancorp, Inc. (“Horizon” or the “Company”), the parent company of Horizon Bank (the “Bank”), announced its unaudited financial results for the three months ended June 30, 2026.
"Horizon’s results through the first six months of 2026 demonstrated the consistency of our profitability profile and the strength of Horizon’s high quality community banking model. Annualized returns on average assets have maintained around the 1.60% mark, and the net interest margin has been above 4.30%. Despite a notable shift in the interest rate outlook, we believe Horizon’s peer leading profitability metrics will have resiliency going forward," President and CEO, Thomas Prame stated. "We are encouraged by the positive momentum and predictability we see in our business model. Over the first half of 2026, loans and deposits have grown $83 million and $125 million, respectively, which aligns well with our mid-single digit organic growth outlook that is complimented by continued advancement in our fee income verticals and disciplined approach to expense management. We expect this low-volatility, profitability first growth model to drive significant value for our shareholders over time as the business compounds capital at peer-leading levels."
Net income for the three months ended June 30, 2026 was $24.9 million, or $0.49 per diluted share, compared to net income of $26.2 million, or $0.51, for the first quarter of 2026 and net income of $20.6 million, or $0.47 per diluted share, for the second quarter of 2025. As previously announced, results for the second quarter of 2026 were negatively impacted by the pre-tax legal charge of $3.1 million, or $0.05 per diluted share.
Net income for the six months ended June 30, 2026 was $51.1 million, or $0.99 per diluted share, compared to net income of $44.6 million, or $1.01, for the six months ended June 30, 2025.
Second Quarter 2026 Highlights
- Durability of top-tier performance metrics are reflective of the strong performance of Horizon’s community banking model. The Company generated a return on average assets of 1.54% and a return on average tangible common equity of 18.05%, despite the legal charge.
- Net interest income of $63.5 million increased 14.7% compared with $55.4 million in the year ago period. The net interest margin, on a fully taxable equivalent ("FTE") basis1, at 4.37% showed strong quarter over quarter expansion from 4.29% as of the three months ended March 31, 2026, and was significantly higher than the 3.23% reported in the comparable year ago period.
- Funding continues to trend favorably, with non-time deposit balances continuing to grow and total interest-bearing deposit costs remaining low, still down 33 basis points year over year.
- Total loans held for investment ("HFI") increased 6.6% compared to the linked quarter annualized, with strong organic commercial loan growth of $63.5 million, or 7.4% annualized, led by commercial and industrial loans. Loan pipelines continue to be consistent, reflective of Horizon’s attractive markets and embedded community banking model.
- Credit quality remained strong, with annualized net charge offs of 0.05% of average loans during the second quarter. Non-performing assets remain well within expected and historical ranges, with non-performing assets to total assets of 0.66%.
- Expenses for the second quarter were well managed at $43.8 million, including the $3.1 million legal charge, as the Company remains committed to generating positive operating leverage through a more efficient expense base.
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1 Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
| Financial Highlights | |||||||||||||||||||
| (Dollars in Thousands Except Share and Per Share Data and Ratios) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
| 2026 | 2026 | 2025 | 2025 | 2025 | |||||||||||||||
| Income statement: | |||||||||||||||||||
| Net interest income | $ | 63,490 | $ | 62,240 | $ | 63,476 | $ | 58,386 | $ | 55,355 | |||||||||
| Provision for credit losses | 916 | 391 | 1,630 | (3,572 | ) | 2,462 | |||||||||||||
| Non-interest income (loss) | 12,014 | 11,243 | 11,463 | (295,334 | ) | 10,920 | |||||||||||||
| Non-interest expense | 43,844 | 40,747 | 40,615 | 52,952 | 39,417 | ||||||||||||||
| Income tax expense (benefit) | 5,836 | 6,177 | 5,773 | (64,338 | ) | 3,752 | |||||||||||||
| Net Income (Loss) | $ | 24,908 | $ | 26,168 | $ | 26,921 | $ | (221,990 | ) | $ | 20,644 | ||||||||
| Per share data: | |||||||||||||||||||
| Basic earnings (loss) per share | $ | 0.49 | $ | 0.51 | $ | 0.53 | $ | (4.69 | ) | $ | 0.47 | ||||||||
| Diluted earnings (loss) per share | 0.49 | 0.51 | 0.53 | (4.69 | ) | 0.47 | |||||||||||||
| Cash dividends declared per common share | 0.16 | 0.16 | 0.16 | 0.16 | 0.16 | ||||||||||||||
| Book value per common share | 14.21 | 13.69 | 13.50 | 12.96 | 18.06 | ||||||||||||||
| Market value - high | 20.29 | 18.68 | 18.47 | 16.88 | 15.88 | ||||||||||||||
| Market value - low | 16.76 | 15.57 | 15.04 | 15.01 | 12.92 | ||||||||||||||
| Weighted average shares outstanding - Basic | 51,082,827 | 50,987,426 | 50,975,693 | 47,311,642 | 43,794,490 | ||||||||||||||
| Weighted average shares outstanding - Diluted | 51,304,962 | 51,243,002 | 51,277,134 | 47,311,642 | 44,034,663 | ||||||||||||||
| Common shares outstanding (end of period) | 51,093,048 | 51,056,888 | 50,978,030 | 50,970,530 | 43,801,507 | ||||||||||||||
| Key ratios: | |||||||||||||||||||
| Return on average assets | 1.54 | % | 1.62 | % | 1.63 | % | (12.07)% | 1.09 | % | ||||||||||
| Return on average stockholders' equity | 13.97 | 14.99 | 15.71 | (120.37 | ) | 10.49 | |||||||||||||
| Total equity to total assets | 11.05 | 10.65 | 10.69 | 9.84 | 10.34 | ||||||||||||||
| Total loans to deposit ratio | 91.93 | 90.15 | 92.62 | 87.41 | 87.52 | ||||||||||||||
| Allowance for credit losses to HFI loans | 1.05 | 1.05 | 1.05 | 1.04 | 1.09 | ||||||||||||||
| Annualized net charge-offs of average total loans(1) | 0.05 | 0.05 | 0.08 | 0.07 | 0.02 | ||||||||||||||
| Efficiency ratio | 58.07 | 55.45 | 54.20 | (22.35 | ) | 59.47 | |||||||||||||
| Key metrics (Non-GAAP)(2) | |||||||||||||||||||
| Net FTE interest margin | 4.37 | % | 4.29 | % | 4.29 | % | 3.52 | % | 3.23 | % | |||||||||
| Return on average tangible common equity | 18.05 | 19.02 | 20.66 | (155.03 | ) | 13.24 | |||||||||||||
| Tangible common equity to tangible assets | 8.81 | 8.39 | 8.38 | 7.60 | 8.37 | ||||||||||||||
| Tangible book value per common share | $ | 11.06 | $ | 10.52 | $ | 10.32 | $ | 9.76 | $ | 14.32 | |||||||||
| (1)Average total loans includes loans held for investment and held for sale. | |||||||||||||||||||
| (2)Non-GAAP financial metrics. See non-GAAP reconciliation included herein for the most directly comparable GAAP measures. | |||||||||||||||||||
Income Statement Highlights
Net Interest Income
Net interest income was $63.5 million in the second quarter of 2026, compared to $62.2 million in the first quarter of 2026, driven by the continued strength of the Company's net FTE interest margin1, which increased to 4.37% for the second quarter of 2026, compared to 4.29% the first quarter of 2026. The margin's resilience is reflective of continued disciplined loan and deposit pricing, a favorable cash reinvestment profile and strong commercial loan growth during the quarter.
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1 Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
Provision for Credit Losses
During the second quarter of 2026, the Company recorded a provision for credit losses of $0.9 million. This compares to a recorded provision for credit losses of $0.4 million during the first quarter of 2026, and $2.5 million during the second quarter of 2025. The increase in the provision for credit losses during the second quarter of 2026 when compared with the first quarter of 2026 was primarily due to net loan growth and an increase in specific reserves on select commercial loans.
For the second quarter of 2026, net charge-offs were $0.6 million, or an annualized 0.05% of average loans outstanding, compared to net charge-offs of $0.6 million, or an annualized 0.05% of average loans outstanding for the first quarter of 2026, and net charge-offs of $0.3 million, or an annualized 0.02% of average loans outstanding, in the second quarter of 2025.
The Company’s allowance for credit losses as a percentage of period-end loans HFI was 1.05% at June 30, 2026, consistent with March 31, 2026, and down from 1.09% at June 30, 2025.
Non-Interest Income
| For the Quarter Ended | June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||
| (Dollars in Thousands) | 2026 | 2026 | 2025 | 2025 | 2025 | ||||||||||
| Non-interest (Loss) Income | |||||||||||||||
| Service charges on deposit accounts | $ | 3,376 | $ | 3,524 | $ | 3,341 | $ | 3,474 | $ | 3,208 | |||||
| Wire transfer fees | 67 | 63 | 66 | 71 | 69 | ||||||||||
| Interchange fees | 3,595 | 3,373 | 3,445 | 3,510 | 3,403 | ||||||||||
| Fiduciary activities | 1,501 | 1,556 | 1,560 | 1,363 | 1,251 | ||||||||||
| Gain (loss) on sale of investment securities | — | — | 1 | (299,132 | ) | — | |||||||||
| Gain on sale of mortgage loans | 1,576 | 1,090 | 1,296 | 1,208 | 1,219 | ||||||||||
| Mortgage servicing income net of impairment | 350 | 337 | 352 | 351 | 375 | ||||||||||
| Increase in cash value of bank owned life insurance | 345 | 333 | 360 | 379 | 346 | ||||||||||
| Other income (loss) | 1,204 | 967 | 1,042 | (6,558 | ) | 1,049 | |||||||||
| Total non-interest (loss) income | $ | 12,014 | $ | 11,243 | $ | 11,463 | $ | (295,334 | ) | $ | 10,920 | ||||
Total non-interest income was $12.0 million in the second quarter of 2026, compared to non-interest income of $11.2 million in the first quarter of 2026. The increase in non-interest income of $0.8 million is primarily attributable to an increase in gains on the sale of mortgage loans, due to increased volumes and wider margins on loan sales, and higher activity-based interchange fees. All other components of non-interest income remained relatively stable quarter over quarter.
Non-Interest Expense
| For the Quarter Ended | June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||
| (Dollars in Thousands) | 2026 | 2026 | 2025 | 2025 | 2025 | ||||||||||
| Non-interest Expense | |||||||||||||||
| Salaries and employee benefits | $ | 24,194 | $ | 23,187 | $ | 21,895 | $ | 22,698 | $ | 22,731 | |||||
| Net occupancy expenses | 3,698 | 4,197 | 3,718 | 3,321 | 3,127 | ||||||||||
| Data processing | 3,631 | 3,353 | 3,128 | 2,933 | 2,951 | ||||||||||
| Professional fees | (64 | ) | 929 | 1,083 | 808 | 735 | |||||||||
| Outside services and consultants | 2,537 | 2,764 | 3,035 | 3,844 | 3,278 | ||||||||||
| Loan expense | 1,417 | 1,219 | 1,183 | 1,237 | 1,231 | ||||||||||
| FDIC insurance expense | 1,003 | 1,023 | 1,251 | 1,345 | 1,216 | ||||||||||
| Core deposit intangible amortization | 675 | 675 | 706 | 706 | 816 | ||||||||||
| Prepayment penalties | — | — | — | 12,680 | — | ||||||||||
| Other losses | 115 | 192 | 732 | 131 | 245 | ||||||||||
| Other expense | 6,638 | 3,208 | 3,884 | 3,249 | 3,087 | ||||||||||
| Total non-interest expense | $ | 43,844 | $ | 40,747 | $ | 40,615 | $ | 52,952 | $ | 39,417 | |||||
Total non-interest expense was $43.8 million in the second quarter of 2026, compared to $40.7 million in the first quarter of 2026. The increase was driven by the previously announced legal charge for $3.1 million in other expense. The accrual will remain in place until the Company has finalized the appeal process. Apart from this item, increases in salary expense and planned marketing spend were offset by lower benefits expense, seasonal declines in occupancy costs and lower professional fees. All other components of non-interest expense remained relatively stable quarter over quarter.
Income Taxes
Horizon recorded a net tax expense of $5.8 million for the second quarter of 2026, resulting in an effective tax rate of 19.0%, which is consistent with the Company's estimated annual effective tax rate.
Balance Sheet Highlights
Total assets increased by $9.9 million, or 0.2%, to $6.6 billion as of June 30, 2026, compared to $6.6 billion as of March 31, 2026. Asset growth during the period was primarily driven by an increase in loans HFI and an increase in investment securities of $15.5 million, partially offset by a decrease in interest earning deposits of $45.1 million, a decrease in FHLB stock of $38.3 million and a decrease in loans held for sale of $4.7 million. Total loans were $5.0 billion at June 30, 2026, an increase of $75.9 million from March 31, 2026 balances, primarily driven by organic commercial loan growth.
Total deposits decreased by $22.1 million, or 0.4%, to $5.4 billion as of June 30, 2026 compared to March 31, 2026. The decrease was driven by a $59.5 million decrease in time deposits and a $39.1 million decrease in non-interest-bearing demand deposits. The decrease was partially offset by an increase of $52.6 million in interest-bearing deposits and a $23.9 million increase in savings and money market balances, reflecting continued success in core deposit gathering efforts.
Overall, balance sheet growth during the quarter reflected a combination of steady asset growth, proactive liquidity management, and ongoing efforts to optimize the deposit base. Management continues to focus on maintaining a strong funding position while supporting measured, relationship-driven loan growth aligned with long-term strategic objectives.
Capital
The following table presents the Consolidated Regulatory Capital Ratios of the Company for the previous three quarters, and the Company’s preliminary estimate of its consolidated regulatory capital ratios for the quarter ended June 30, 2026:
| For the Quarter Ended | June 30, | March 31, | December 31, | September 30, | ||||||||
| 2026* | 2026 | 2025 | 2025 | |||||||||
| Consolidated Capital Ratios | ||||||||||||
| Total capital (to risk-weighted assets) | 15.01 | % | 14.76 | % | 14.36 | % | 15.00 | % | ||||
| Tier 1 capital (to risk-weighted assets) | 12.17 | 11.90 | 11.51 | 11.27 | ||||||||
| Common equity tier 1 capital (to risk-weighted assets) | 11.09 | 10.81 | 10.42 | 10.17 | ||||||||
| Tier 1 capital (to average assets) | 10.17 | 9.84 | 9.55 | 8.22 | ||||||||
| *Preliminary estimate - may be subject to change | ||||||||||||
As of June 30, 2026, the ratio of total stockholders’ equity to total assets is 11.05%. Book value per common share was $14.21, increasing $0.52 during the second quarter of 2026, as growth in retained earnings was partially offset by modestly higher levels of other comprehensive losses.
Tangible common equity1 totaled $565.1 million at June 30, 2026, and the ratio of tangible common equity to tangible assets1 was 8.81% at June 30, 2026, up from 8.39% at March 31, 2026. Tangible book value, which excludes intangible assets from total equity, per common share was $11.06, increasing $0.54 during the second quarter of 2026.
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1 Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
Credit Quality
As of June 30, 2026, total non-accrual loans decreased by $2.5 million from March 31, 2026, and represent 0.65% of total loans held for investment. Total non-performing assets decreased $0.3 million, to $43.7 million, compared with $44.0 million at March 31, 2026. Non-performing assets are 0.66% of total assets at quarter end, down slightly from 0.67% at March 31, 2026.
For the quarter ended June 30, 2026, net charge-offs were $0.6 million, or 0.05% annualized of average loans, consistent with $0.6 million as of March 31, 2026. Charge‑off levels during the quarter remained low and consistent with management’s expectations, reflecting a continued focus on disciplined underwriting and proactive portfolio monitoring. Overall, credit metrics remain stable, and management continues to closely monitor portfolio performance in the current economic environment.
Earnings Conference Call
As previously announced, Horizon will host a conference call to review its second quarter financial results and operating performance.
Participants may access the live conference call on July 23, 2026 at 7:30 a.m. CT (8:30 a.m. ET) by dialing 1-833-974-2379 from the United States and Canada or 1-412-317-5772 from international locations and requesting the “Horizon Bancorp, Inc. Call.” Participants are asked to dial in approximately 10 minutes prior to the call.
A telephone replay of the call will be available approximately one hour after the end of the conference through August 23, 2026. The replay may be accessed by dialing 1-855-669-9658 from the United States and Canada, or 1–412–317-0088 from other international locations, and entering the access code 6151989.
About Horizon Bancorp, Inc.
Horizon Bancorp, Inc. (NASDAQ GS: HBNC) is the $6.6 billion-asset commercial bank holding company for Horizon Bank, which serves customers across diverse and economically attractive Midwestern markets through convenient digital and virtual tools, as well as its Indiana and Michigan branches. Horizon's retail offerings include prime residential and other secured consumer lending to in-market customers, as well as a range of personal banking and wealth management solutions. Horizon also provides a comprehensive array of in-market business banking and treasury management services, as well as equipment financing solutions for customers regionally and nationally, with commercial lending representing over half of total loans. More information on Horizon, headquartered in Northwest Indiana's Michigan City, is available at horizonbank.com and investor.horizonbank.com.
Use of Non-GAAP Financial Measures
Certain information set forth in this press release refers to financial measures determined by methods other than in accordance with GAAP. Specifically, we have included non-GAAP financial measures relating to net income, diluted earnings per share, pre-tax, pre-provision net income, net interest margin, tangible stockholders’ equity and tangible book value per share, efficiency ratio, the return on average assets, the return on average common equity, and return on average tangible equity. In each case, we have identified special circumstances that we consider to be non-recurring and have excluded them. Horizon believes these non-GAAP financial measures are helpful to investors and provide a greater understanding of our business and financial results without giving effect to one-time costs and non–recurring items. These measures are not necessarily comparable to similar measures that may be presented by other companies and should not be considered in isolation or as a substitute for the related GAAP measure. See the tables and other information below and contained elsewhere in this press release for reconciliations of the non-GAAP information identified herein and its most comparable GAAP measures.
Forward Looking Statements
This press release may contain forward–looking statements regarding the financial performance, business prospects, growth and operating strategies of Horizon Bancorp, Inc. and its affiliates (collectively, “Horizon”). For these statements, Horizon claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this press release should be considered in conjunction with the other information available about Horizon, including the information in the filings we make with the Securities and Exchange Commission (the “SEC”). Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance.
Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include: changes in U.S. trade policies, including the imposition of tariffs and retaliatory tariffs, changes within the domestic and international macroeconomic environment, including trade policy, monetary and fiscal policy, inflation levels, and conditions in the investment, credit, interest rate, and derivatives markets, and their impact on Horizon and its customers; current financial conditions within the banking industry; changes in the level and volatility of interest rates, changes in spreads on earning assets and changes in interest bearing liabilities; increased interest rate sensitivity; loss of key Horizon personnel; increases in disintermediation; potential loss of fee income, including interchange fees, as new and emerging alternative payment platforms take a greater market share of the payment systems; estimates of fair value of certain of Horizon’s assets and liabilities; changes in prepayment speeds, loan originations, credit losses, market values, collateral securing loans and other assets; changes in sources of liquidity; legislative and regulatory actions and reforms; changes in accounting policies or procedures as may be adopted and required by regulatory agencies; litigation, regulatory enforcement, and legal compliance risk and costs; rapid technological developments and changes; cyber terrorism and data security breaches; the rising costs of cybersecurity; the ability of the U.S. federal government to manage federal debt limits; climate change and social justice initiatives; the inability to realize cost savings or revenues or to effectively implement integration plans and other consequences associated with mergers, acquisitions, and divestitures; acts of terrorism, war and global conflicts, and the effects of foreign and military policies of the U.S. government; and supply chain disruptions and delays. These and additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in Horizon’s reports (such as the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K) filed with the SEC and available at the SEC’s website (www.sec.gov). Undue reliance should not be placed on the forward–looking statements, which speak only as of the date hereof. Horizon does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward–looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.
| Condensed Consolidated Statements of Income | ||||||||||||||||
| (Dollars in Thousands Except Per Share Data, Unaudited) | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||
| 2026 | 2026 | 2025 | 2025 | 2025 | ||||||||||||
| Interest Income | ||||||||||||||||
| Loans receivable | $ | 77,740 | $ | 75,104 | $ | 77,238 | $ | 79,561 | $ | 78,618 | ||||||
| Investment securities - taxable | 7,248 | 7,494 | 7,688 | 6,631 | 5,941 | |||||||||||
| Investment securities - tax-exempt | 2,583 | 2,544 | 2,498 | 4,581 | 6,088 | |||||||||||
| Other | 937 | 1,509 | 1,864 | 2,063 | 830 | |||||||||||
| Total interest income | 88,508 | 86,651 | 89,288 | 92,836 | 91,477 | |||||||||||
| Interest Expense | ||||||||||||||||
| Deposits | 20,479 | 19,944 | 21,228 | 25,726 | 26,053 | |||||||||||
| Borrowed funds | 1,655 | 1,654 | 1,749 | 5,924 | 8,171 | |||||||||||
| Subordinated notes | 1,904 | 1,830 | 1,811 | 1,731 | 829 | |||||||||||
| Junior subordinated debentures issued to capital trusts | 980 | 983 | 1,024 | 1,069 | 1,070 | |||||||||||
| Total interest expense | 25,018 | 24,411 | 25,812 | 34,450 | 36,123 | |||||||||||
| Net Interest Income | 63,490 | 62,240 | 63,476 | 58,386 | 55,354 | |||||||||||
| Provision for credit losses | 916 | 391 | 1,630 | (3,572 | ) | 2,462 | ||||||||||
| Net Interest Income after Provision for Credit Losses | 62,574 | 61,849 | 61,846 | 61,958 | 52,892 | |||||||||||
| Non-interest Income | ||||||||||||||||
| Service charges on deposit accounts | 3,376 | 3,524 | 3,341 | 3,474 | 3,208 | |||||||||||
| Wire transfer fees | 67 | 63 | 66 | 71 | 69 | |||||||||||
| Interchange fees | 3,595 | 3,373 | 3,445 | 3,510 | 3,403 | |||||||||||
| Fiduciary activities | 1,501 | 1,556 | 1,560 | 1,363 | 1,251 | |||||||||||
| Gain (loss) on sale of investment securities | — | — | 1 | (299,132 | ) | — | ||||||||||
| Gain on sale of mortgage loans | 1,576 | 1,090 | 1,296 | 1,208 | 1,219 | |||||||||||
| Mortgage servicing income net of impairment | 350 | 337 | 352 | 351 | 375 | |||||||||||
| Increase in cash value of bank owned life insurance | 345 | 333 | 360 | 379 | 346 | |||||||||||
| Other income (loss) | 1,204 | 967 | 1,042 | (6,558 | ) | 1,049 | ||||||||||
| Total non-interest income (loss) | 12,014 | 11,243 | 11,463 | (295,334 | ) | 10,920 | ||||||||||
| Non-interest Expense | ||||||||||||||||
| Salaries and employee benefits | 24,194 | 23,187 | 21,895 | 22,698 | 22,731 | |||||||||||
| Net occupancy expenses | 3,698 | 4,197 | 3,718 | 3,321 | 3,127 | |||||||||||
| Data processing | 3,631 | 3,353 | 3,128 | 2,933 | 2,951 | |||||||||||
| Professional fees | (64 | ) | 929 | 1,083 | 808 | 735 | ||||||||||
| Outside services and consultants | 2,537 | 2,764 | 3,035 | 3,844 | 3,278 | |||||||||||
| Loan expense | 1,417 | 1,219 | 1,183 | 1,237 | 1,231 | |||||||||||
| FDIC insurance expense | 1,003 | 1,023 | 1,251 | 1,345 | 1,216 | |||||||||||
| Core deposit intangible amortization | 675 | 675 | 706 | 706 | 816 | |||||||||||
| Prepayment penalties | — | — | — | 12,680 | — | |||||||||||
| Other losses | 115 | 192 | 732 | 131 | 245 | |||||||||||
| Other expense | 6,638 | 3,208 | 3,884 | 3,249 | 3,087 | |||||||||||
| Total non-interest expense | 43,844 | 40,747 | 40,615 | 52,952 | 39,417 | |||||||||||
| Income (Loss) Before Income Taxes | 30,744 | 32,345 | 32,694 | (286,328 | ) | 24,395 | ||||||||||
| Income tax expense (benefit) | 5,836 | 6,177 | 5,773 | (64,338 | ) | 3,752 | ||||||||||
| Net Income (Loss) | $ | 24,908 | $ | 26,168 | $ | 26,921 | $ | (221,990 | ) | $ | 20,643 | |||||
| Basic Earnings (Loss) Per Share | $ | 0.49 | $ | 0.51 | $ | 0.53 | $ | (4.69 | ) | $ | 0.47 | |||||
| Diluted Earnings (Loss) Per Share | 0.49 | 0.51 | 0.53 | (4.69 | ) | 0.47 | ||||||||||
| Condensed Consolidated Balance Sheet | |||||||||||||||||||
| (Dollars in Thousands, Unaudited) | |||||||||||||||||||
| Three Months Ended for the Period | |||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
| 2026 | 2026 | 2025 | 2025 | 2025 | |||||||||||||||
| Assets | |||||||||||||||||||
| Interest earning assets | |||||||||||||||||||
| Federal funds sold | $ | — | $ | — | $ | — | $ | — | $ | 2,024 | |||||||||
| Interest earning deposits | 145,571 | 190,717 | 72,646 | 381,860 | 34,174 | ||||||||||||||
| Federal Home Loan Bank stock | 7,418 | 45,713 | 45,713 | 45,713 | 45,412 | ||||||||||||||
| Investment securities, held for trading | 3,885 | 3,983 | 3,883 | 598 | — | ||||||||||||||
| Investment securities, available for sale | 897,764 | 882,168 | 875,414 | 883,242 | 231,999 | ||||||||||||||
| Investment securities, held to maturity | — | — | — | — | 1,819,087 | ||||||||||||||
| Loans held for sale | 5,147 | 9,821 | 9,778 | 1,921 | 2,994 | ||||||||||||||
| Gross loans held for investment (HFI) | 4,959,120 | 4,878,549 | 4,876,542 | 4,823,669 | 4,985,582 | ||||||||||||||
| Total Interest earning assets | 6,018,905 | 6,010,951 | 5,883,976 | 6,137,003 | 7,121,272 | ||||||||||||||
| Non-interest earning assets | |||||||||||||||||||
| Allowance for credit losses | (51,921 | ) | (51,297 | ) | (51,299 | ) | (50,178 | ) | (54,399 | ) | |||||||||
| Cash | 72,378 | 68,354 | 66,813 | 76,395 | 101,719 | ||||||||||||||
| Cash value of life insurance | 37,410 | 37,065 | 36,732 | 37,762 | 37,755 | ||||||||||||||
| Other assets | 215,032 | 217,649 | 215,460 | 226,247 | 148,773 | ||||||||||||||
| Goodwill | 155,211 | 155,211 | 155,211 | 155,211 | 155,211 | ||||||||||||||
| Other intangible assets | 5,829 | 6,505 | 7,180 | 7,886 | 8,592 | ||||||||||||||
| Premises and equipment, net | 90,939 | 90,763 | 92,805 | 93,413 | 93,398 | ||||||||||||||
| Interest receivable | 30,377 | 29,015 | 29,733 | 28,758 | 39,730 | ||||||||||||||
| Total non-interest earning assets | 555,255 | 553,265 | 552,635 | 575,494 | 530,779 | ||||||||||||||
| Total assets | $ | 6,574,160 | $ | 6,564,216 | $ | 6,436,611 | $ | 6,712,497 | $ | 7,652,051 | |||||||||
| Liabilities | |||||||||||||||||||
| Savings and money market deposits | $ | 3,195,553 | $ | 3,119,034 | $ | 3,094,231 | $ | 3,198,332 | $ | 3,385,413 | |||||||||
| Time deposits | 1,104,316 | 1,163,807 | 1,102,478 | 1,199,681 | 1,193,180 | ||||||||||||||
| Borrowings | 153,707 | 159,825 | 160,118 | 160,206 | 880,336 | ||||||||||||||
| Repurchase agreements | 69,278 | 66,004 | 88,468 | 86,966 | 95,089 | ||||||||||||||
| Subordinated notes | 98,318 | 98,262 | 98,215 | 154,011 | 55,807 | ||||||||||||||
| Junior subordinated debentures issued to capital trusts | 57,789 | 57,740 | 57,688 | 57,636 | 57,583 | ||||||||||||||
| Total interest earning liabilities | 4,678,961 | 4,664,672 | 4,601,198 | 4,856,832 | 5,667,408 | ||||||||||||||
| Non-interest bearing deposits | 1,100,355 | 1,139,466 | 1,078,708 | 1,122,888 | 1,121,163 | ||||||||||||||
| Interest payable | 10,862 | 8,537 | 12,892 | 12,395 | 14,007 | ||||||||||||||
| Other liabilities | 57,793 | 52,514 | 55,562 | 59,611 | 58,621 | ||||||||||||||
| Total liabilities | 5,847,971 | 5,865,189 | 5,748,360 | 6,051,726 | 6,861,199 | ||||||||||||||
| Stockholders’ Equity | |||||||||||||||||||
| Preferred stock | — | — | — | — | — | ||||||||||||||
| Common stock | — | — | — | — | — | ||||||||||||||
| Additional paid-in capital | 460,610 | 459,799 | 459,243 | 458,734 | 360,758 | ||||||||||||||
| Retained earnings | 289,594 | 272,941 | 255,004 | 236,312 | 466,497 | ||||||||||||||
| Accumulated other comprehensive (loss) | (24,015 | ) | (33,713 | ) | (25,996 | ) | (34,275 | ) | (36,403 | ) | |||||||||
| Total stockholders’ equity | 726,189 | 699,027 | 688,251 | 660,771 | 790,852 | ||||||||||||||
| Total liabilities and stockholders’ equity | $ | 6,574,160 | $ | 6,564,216 | $ | 6,436,611 | $ | 6,712,497 | $ | 7,652,051 | |||||||||
| Loans and Deposits | ||||||||||||||||||||
| (Dollars in Thousands, Unaudited) | ||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | % Change | |||||||||||||||
| 2026 | 2026 | 2025 | 2025 | 2025 | Q2'26 vs Q1'26 | Q2'26 vs Q2'25 | ||||||||||||||
| Loans: | ||||||||||||||||||||
| Commercial real estate | $ | 2,445,173 | $ | 2,443,582 | $ | 2,421,863 | $ | 2,366,956 | $ | 2,321,951 | — | % | 5 | % | ||||||
| Commercial & Industrial | 1,085,008 | 1,023,068 | 1,010,545 | 989,609 | 976,740 | 6 | % | 11 | % | |||||||||||
| Total commercial | 3,530,181 | 3,466,650 | 3,432,408 | 3,356,565 | 3,298,691 | 2 | % | 7 | % | |||||||||||
| Residential Real estate | 755,707 | 750,108 | 772,427 | 783,850 | 786,026 | 1 | % | (4)% | ||||||||||||
| Consumer | 673,232 | 661,791 | 671,707 | 683,254 | 900,865 | 2 | % | (25)% | ||||||||||||
| Total loans held for investment | 4,959,120 | 4,878,549 | 4,876,542 | 4,823,669 | 4,985,582 | 2 | % | (1)% | ||||||||||||
| Loans held for sale | 5,147 | 9,821 | 9,778 | 1,921 | 2,994 | (48)% | 72 | % | ||||||||||||
| Total loans | $ | 4,964,267 | $ | 4,888,370 | $ | 4,886,320 | $ | 4,825,590 | $ | 4,988,576 | 2 | % | — | % | ||||||
| Deposits: | ||||||||||||||||||||
| Interest bearing deposits | $ | 1,664,367 | $ | 1,611,795 | $ | 1,639,857 | $ | 1,715,471 | $ | 1,713,058 | 3 | % | (3)% | |||||||
| Savings and money market deposits | 1,531,186 | 1,507,239 | 1,454,374 | 1,482,861 | 1,672,355 | 2 | % | (8)% | ||||||||||||
| Time deposits | 1,104,316 | 1,163,807 | 1,102,478 | 1,199,681 | 1,193,180 | (5)% | (7)% | |||||||||||||
| Total Interest bearing deposits | 4,299,869 | 4,282,841 | 4,196,709 | 4,398,013 | 4,578,593 | — | % | (6)% | ||||||||||||
| Non-interest bearing deposits | ||||||||||||||||||||
| Non-interest bearing deposits | 1,100,355 | 1,139,466 | 1,078,708 | 1,122,888 | 1,121,164 | (3)% | (2)% | |||||||||||||
| Total deposits | $ | 5,400,224 | $ | 5,422,307 | $ | 5,275,417 | $ | 5,520,901 | $ | 5,699,757 | — | % | (5)% | |||||||
| Average Balance Sheet | |||||||||||||||||||||
| (Dollars in Thousands, Unaudited) | |||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||
| June 30, 2026 | March 31, 2026 | June 30, 2025 | |||||||||||||||||||
| Average Balance | Interest(4)(6) | Average Rate(4) | Average Balance | Interest(4)(6) | Average Rate(4) | Average Balance | Interest(4)(6) | Average Rate(4) | |||||||||||||
| Assets | |||||||||||||||||||||
| Interest earning assets | |||||||||||||||||||||
| Interest earning deposits (incl. Fed Funds Sold) | $ | 101,650 | $ | 936 | 3.69 | % | $ | 165,084 | $ | 1,509 | 3.71 | % | $ | 72,993 | $ | 830 | 4.56 | % | |||
| Federal Home Loan Bank stock | 15,834 | 259 | 6.56 | % | 45,713 | 551 | 4.89 | % | 45,412 | 1,075 | 9.49 | % | |||||||||
| Investment securities - taxable (1) | 584,471 | 6,990 | 4.80 | % | 581,146 | 6,944 | 4.85 | % | 959,238 | 4,867 | 2.03 | % | |||||||||
| Investment securities - non-taxable (1) | 314,064 | 3,270 | 4.18 | % | 319,276 | 3,220 | 4.09 | % | 1,100,731 | 7,706 | 2.81 | % | |||||||||
| Total investment securities | 898,535 | 10,260 | 4.58 | % | 900,422 | 10,164 | 4.58 | % | 2,059,969 | 12,573 | 2.45 | % | |||||||||
| Loans receivable (2) (3) | 4,916,799 | 78,140 | 6.37 | % | 4,873,753 | 75,485 | 6.28 | % | 4,947,093 | 79,000 | 6.41 | % | |||||||||
| Total interest earning assets | 5,932,818 | 89,595 | 6.06 | % | 5,984,972 | 87,709 | 5.94 | % | 7,125,467 | 93,478 | 5.26 | % | |||||||||
| Non-interest earning assets | |||||||||||||||||||||
| Cash and due from banks | 71,692 | 68,007 | 86,316 | ||||||||||||||||||
| Allowance for credit losses | (51,106 | ) | (51,217 | ) | (52,560 | ) | |||||||||||||||
| Other assets | 535,339 | 533,989 | 472,175 | ||||||||||||||||||
| Total average assets | $ | 6,488,743 | $ | 6,535,751 | $ | 7,631,398 | |||||||||||||||
| Liabilities and Stockholders' Equity | |||||||||||||||||||||
| Interest bearing liabilities | |||||||||||||||||||||
| Interest bearing demand deposits | $ | 1,627,013 | $ | 5,011 | 1.24 | % | $ | 1,638,208 | $ | 4,586 | 1.14 | % | $ | 1,727,713 | $ | 6,803 | 1.58 | % | |||
| Saving and money market deposits | 1,484,771 | 5,981 | 1.62 | % | 1,475,444 | 5,619 | 1.54 | % | 1,651,866 | 8,200 | 1.99 | % | |||||||||
| Time deposits | 1,116,139 | 9,488 | 3.41 | % | 1,153,484 | 9,739 | 3.42 | % | 1,233,582 | 11,050 | 3.59 | % | |||||||||
| Total Deposits | 4,227,923 | 20,480 | 1.94 | % | 4,267,136 | 19,944 | 1.90 | % | 4,613,161 | 26,053 | 2.27 | % | |||||||||
| Borrowings | 150,118 | 1,435 | 3.83 | % | 150,229 | 1,421 | 3.84 | % | 847,862 | 7,777 | 3.68 | % | |||||||||
| Repurchase agreements | 67,494 | 219 | 1.30 | % | 77,376 | 233 | 1.22 | % | 88,058 | 394 | 1.79 | % | |||||||||
| Subordinated notes | 98,279 | 1,904 | 7.77 | % | 98,231 | 1,830 | 7.56 | % | 55,785 | 829 | 5.96 | % | |||||||||
| Junior subordinated debentures issued to capital trusts | 57,758 | 980 | 6.81 | % | 57,706 | 983 | 6.91 | % | 57,550 | 1,070 | 7.46 | % | |||||||||
| Total interest bearing liabilities | 4,601,572 | 25,018 | 2.18 | % | 4,650,678 | 24,411 | 2.13 | % | 5,662,416 | 36,123 | 2.56 | % | |||||||||
| Non-interest bearing liabilities | |||||||||||||||||||||
| Demand deposits | 1,117,113 | 1,117,930 | 1,114,982 | ||||||||||||||||||
| Accrued interest payable and other liabilities | 55,032 | 59,227 | 64,465 | ||||||||||||||||||
| Stockholders' equity | 715,026 | 707,916 | 789,535 | ||||||||||||||||||
| Total average liabilities and stockholders' equity | $ | 6,488,743 | $ | 6,535,751 | $ | 7,631,398 | |||||||||||||||
| Net FTE interest income (non-GAAP) (5) | $ | 64,577 | $ | 63,298 | $ | 57,355 | |||||||||||||||
| Less FTE adjustments (4) | 1,087 | 1,058 | 2,001 | ||||||||||||||||||
| Net Interest Income | $ | 63,490 | $ | 62,240 | $ | 55,354 | |||||||||||||||
| Net FTE interest margin (Non-GAAP) (4)(5) | 4.37 | % | 4.29 | % | 3.23 | % | |||||||||||||||
| (1)Securities balances represent daily average balances for the fair value of securities. The average rate is calculated based on the daily average balance for the amortized cost of securities. | |||||||||||||||||||||
| (2)Includes fees on loans held for sale and held for investment. The inclusion of loan fees does not have a material effect on the average interest rate. | |||||||||||||||||||||
| (3)Non-accruing loans for the purpose of the computation above are included in the daily average loan amounts outstanding. Loan totals are shown net of unearned income and deferred loan fees. | |||||||||||||||||||||
| (4)Management believes fully taxable equivalent, or FTE, interest income is useful to investors in evaluating the Company's performance as a comparison of the returns between a tax-free investment and a taxable alternative. The Company adjusts interest income and average rates for tax-exempt loans and securities to an FTE basis utilizing a 21% tax rate. | |||||||||||||||||||||
| (5)Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure. | |||||||||||||||||||||
| (6)Includes dividend income on Federal Home Loan Bank stock | |||||||||||||||||||||
| Credit Quality | |||||||||||||||||||||||||
| (Dollars in Thousands Except Ratios, Unaudited) | |||||||||||||||||||||||||
| Quarter Ended | |||||||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | % Change | ||||||||||||||||||||
| 2026 | 2026 | 2025 | 2025 | 2025 | Q2'26 vs Q1'26 | Q2'26 vs Q2'25 | |||||||||||||||||||
| Non-accrual loans | |||||||||||||||||||||||||
| Commercial | $ | 17,843 | $ | 15,761 | $ | 14,549 | $ | 12,303 | $ | 7,547 | 13 | % | 136 | % | |||||||||||
| Residential Real estate | 8,454 | 10,607 | 10,087 | 9,256 | 9,525 | (20)% | (11)% | ||||||||||||||||||
| Consumer | 6,004 | 8,416 | 7,821 | 7,799 | 7,222 | (29)% | (17)% | ||||||||||||||||||
| Total non-accrual loans | 32,301 | 34,784 | 32,457 | 29,358 | 24,294 | (7)% | 33 | % | |||||||||||||||||
| 90 days and greater delinquent - accruing interest | 2,632 | 2,211 | 2,489 | 1,608 | 2,113 | 19 | % | 25 | % | ||||||||||||||||
| Total non-performing loans | $ | 34,933 | $ | 36,995 | $ | 34,946 | $ | 30,966 | $ | 26,407 | (6)% | 32 | % | ||||||||||||
| Other real estate owned | |||||||||||||||||||||||||
| Commercial | $ | 463 | $ | 594 | $ | 539 | $ | 272 | $ | 176 | (22)% | 163 | % | ||||||||||||
| Residential Real estate | 570 | 631 | 672 | 769 | 463 | (10)% | 23 | % | |||||||||||||||||
| Consumer | 3,633 | 1,875 | 480 | 480 | 480 | 94 | % | 657 | % | ||||||||||||||||
| Total other real estate owned | 4,666 | 3,100 | 1,691 | 1,521 | 1,119 | 51 | % | 317 | % | ||||||||||||||||
| Other non-performing assets(1) | $ | 4,094 | $ | 3,935 | $ | 3,991 | $ | 3,228 | $ | 2,937 | 4 | % | 39 | % | |||||||||||
| Total non-performing assets | $ | 43,693 | $ | 44,030 | $ | 40,628 | $ | 35,715 | $ | 30,463 | (1)% | 43 | % | ||||||||||||
| Loan data: | |||||||||||||||||||||||||
| Accruing 30 to 89 days past due loans | $ | 21,296 | $ | 19,379 | $ | 24,580 | $ | 24,784 | $ | 31,401 | 10 | % | (32)% | ||||||||||||
| Substandard loans | 64,564 | 63,419 | 59,365 | 63,236 | 64,100 | 2 | % | 1 | % | ||||||||||||||||
| Net charge-offs (recoveries) | |||||||||||||||||||||||||
| Commercial | $ | 295 | $ | 339 | $ | 436 | $ | 294 | $ | 84 | (13)% | 251 | % | ||||||||||||
| Residential Real estate | 46 | 1 | (25 | ) | 19 | 52 | 4500 | % | (12)% | ||||||||||||||||
| Consumer | 264 | 285 | 559 | 518 | 118 | (7)% | 124 | % | |||||||||||||||||
| Total net charge-offs | $ | 605 | $ | 625 | $ | 970 | $ | 831 | $ | 254 | (3)% | 138 | % | ||||||||||||
| Allowance for credit losses | |||||||||||||||||||||||||
| Commercial | $ | 36,122 | $ | 34,997 | $ | 35,473 | $ | 34,390 | $ | 34,413 | 3 | % | 5 | % | |||||||||||
| Residential Real estate | 2,958 | 3,183 | 3,183 | 3,082 | 3,229 | (7)% | (8)% | ||||||||||||||||||
| Consumer | 12,841 | 13,117 | 12,643 | 12,706 | 16,757 | (2)% | (23)% | ||||||||||||||||||
| Total allowance for credit losses | $ | 51,921 | $ | 51,297 | $ | 51,299 | $ | 50,178 | $ | 54,399 | 1 | % | (5)% | ||||||||||||
| Credit quality ratios | |||||||||||||||||||||||||
| Non-accrual loans to HFI loans | 0.65 | % | 0.71 | % | 0.67 | % | 0.61 | % | 0.49 | % | |||||||||||||||
| Non-performing assets to total assets | 0.66 | % | 0.67 | % | 0.63 | % | 0.53 | % | 0.40 | % | |||||||||||||||
| Annualized net charge-offs of average total loans | 0.05 | % | 0.05 | % | 0.08 | % | 0.07 | % | 0.02 | % | |||||||||||||||
| Allowance for credit losses to HFI loans | 1.05 | % | 1.05 | % | 1.05 | % | 1.04 | % | 1.09 | % | |||||||||||||||
| (1)Other non-performing assets consist of a single available for sale debt security placed on non-accrual status. | |||||||||||||||||||||||||
| Non–GAAP Reconciliation of Net Fully-Taxable Equivalent ("FTE") Interest Margin | ||||||||||||||||||||
| (Dollars in Thousands, Unaudited) | ||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| 2026 | 2026 | 2025 | 2025 | 2025 | ||||||||||||||||
| Interest income (GAAP) | (A) | $ | 88,508 | $ | 86,651 | $ | 89,288 | $ | 92,836 | $ | 91,477 | |||||||||
| Taxable-equivalent adjustment: | ||||||||||||||||||||
| Investment securities - tax exempt (1) | 686 | 676 | 665 | 1,218 | 1,619 | |||||||||||||||
| Loan receivable (2) | 402 | 381 | 390 | 379 | 382 | |||||||||||||||
| Interest income (non-GAAP) | (B) | 89,596 | 87,708 | 90,343 | 94,433 | 93,478 | ||||||||||||||
| Interest expense (GAAP) | (C) | 25,018 | 24,411 | 25,812 | 34,450 | 36,123 | ||||||||||||||
| Net interest income (GAAP) | (D) =(A) - (C) | $ | 63,490 | $ | 62,240 | $ | 63,476 | $ | 58,386 | $ | 55,354 | |||||||||
| Net FTE interest income (non-GAAP) | (E) = (B) - (C) | $ | 64,578 | $ | 63,297 | $ | 64,531 | $ | 59,983 | $ | 57,355 | |||||||||
| Average interest earning assets | (F) | 5,932,818 | 5,984,972 | 5,967,328 | 6,766,742 | 7,125,467 | ||||||||||||||
| Net FTE interest margin (non-GAAP) | (G) = (E*) / (F) | 4.37 | % | 4.29 | % | 4.29 | % | 3.52 | % | 3.23 | % | |||||||||
| (1)The following represents municipal securities interest income for investment securities classified as available-for-sale and held-to-maturity | ||||||||||||||||||||
| (2)The following represents municipal loan interest income for loan receivables classified as held for sale and held for investment | ||||||||||||||||||||
| *Annualized | ||||||||||||||||||||
| Non–GAAP Reconciliation of Return on Average Tangible Common Equity | ||||||||||||||||||||
| (Dollars in Thousands, Unaudited) | ||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| 2026 | 2026 | 2025 | 2025 | 2025 | ||||||||||||||||
| Net income (loss) (GAAP) | (A) | $ | 24,908 | $ | 26,168 | $ | 26,921 | $ | (221,990 | ) | $ | 20,644 | ||||||||
| Average stockholders' equity | (B) | $ | 715,026 | $ | 707,916 | $ | 679,821 | $ | 731,657 | $ | 789,535 | |||||||||
| Average intangible assets | (C) | 161,471 | 162,148 | 162,838 | 163,552 | 164,320 | ||||||||||||||
| Average tangible equity (Non-GAAP) | (D) = (B) - (C) | $ | 553,555 | $ | 545,768 | $ | 516,983 | $ | 568,105 | $ | 625,215 | |||||||||
| Return on average tangible common equity ("ROACE") (non-GAAP) | (E) = (A*) / (D) | 18.05 | % | 19.02 | % | 20.66 | % | (155.03)% | 13.24 | % | ||||||||||
| *Annualized | ||||||||||||||||||||
| Non–GAAP Reconciliation of Tangible Common Equity to Tangible Assets | ||||||||||||||||||||
| (Dollars in Thousands, Unaudited) | ||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| 2026 | 2026 | 2025 | 2025 | 2025 | ||||||||||||||||
| Total stockholders' equity (GAAP) | (A) | $ | 726,189 | $ | 699,027 | $ | 688,251 | $ | 660,771 | $ | 790,852 | |||||||||
| Intangible assets (end of period) | (B) | 161,041 | 161,716 | 162,391 | 163,097 | 163,803 | ||||||||||||||
| Total tangible common equity (non-GAAP) | (C) = (A) - (B) | $ | 565,148 | $ | 537,311 | $ | 525,860 | $ | 497,674 | $ | 627,049 | |||||||||
| Total assets (GAAP) | (D) | $ | 6,574,160 | $ | 6,564,216 | $ | 6,436,612 | $ | 6,712,497 | $ | 7,652,051 | |||||||||
| Intangible assets (end of period) | (B) | 161,041 | 161,716 | 162,391 | 163,097 | 163,803 | ||||||||||||||
| Total tangible assets (non-GAAP) | (E) = (D) - (B) | $ | 6,413,119 | $ | 6,402,500 | $ | 6,274,221 | $ | 6,549,400 | $ | 7,488,248 | |||||||||
| Tangible common equity to tangible assets (Non-GAAP) | (G) = (C) / (E) | 8.81 | % | 8.39 | % | 8.38 | % | 7.60 | % | 8.37 | % | |||||||||
| Non–GAAP Reconciliation of Tangible Book Value Per Share | |||||||||||||||
| (Dollars in Thousands, Unaudited) | |||||||||||||||
| Three Months Ended | |||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||
| 2026 | 2026 | 2025 | 2025 | 2025 | |||||||||||
| Total stockholders' equity (GAAP) | (A) | $ | 726,189 | $ | 699,027 | $ | 688,251 | $ | 660,771 | $ | 790,852 | ||||
| Intangible assets (end of period) | (B) | 161,041 | 161,716 | 162,391 | 163,097 | 163,803 | |||||||||
| Total tangible common equity (non-GAAP) | (C) = (A) - (B) | $ | 565,148 | $ | 537,311 | $ | 525,860 | $ | 497,674 | $ | 627,049 | ||||
| Common shares outstanding | (D) | 51,093,048 | 51,056,888 | 50,978,030 | 50,970,530 | 43,801,507 | |||||||||
| Tangible book value per common share (non-GAAP) | (E) = (C) / (D) | $ | 11.06 | $ | 10.52 | $ | 10.32 | $ | 9.76 | $ | 14.32 | ||||
| Contact: | John R. Stewart, CFA |
| EVP, Chief Financial Officer | |
| Phone: | (219) 814–5833 |
| Fax: | (219) 874–9280 |
| Date: | July 22, 2026 |
