Open the filing on EDGARFirst Financial Bancorp Announces Second Quarter 2026 Financial Results, Quarterly Dividend Increase & Acquisition of Finward Bancorp
- Earnings per diluted share of $0.73; $0.80 on an adjusted basis is highest in Company history
- Return on average assets of 1.37%; 1.50% on an adjusted basis
- Net interest margin on FTE basis of 3.98%
- Loan growth of $240 million, or 7.1% on an annualized basis
- Net charge-offs 0.20% of total loans
- ROTCE of 18.0%; 19.7% on adjusted basis
- Board of Directors approved quarterly dividend increase to $0.26 to be paid in 3Q26
- Agreement to acquire Finward Bancorp, the holding company for Peoples Bank, in all stock transaction
Cincinnati, Ohio - July 21, 2026. First Financial Bancorp. (Nasdaq: FFBC) (“First Financial” or the “Company”) announced financial results for the three and six months ended June 30, 2026, as well as the pending acquisition of Finward Bancorp ("Finward").
Second Quarter Financial Results
For the three months ended June 30, 2026, the Company reported net income of $76.5 million, or $0.73 per diluted common share. These results compare to net income of $74.4 million, or $0.71 per diluted common share, for the first quarter of 2026. For the six months ended June 30, 2026, First Financial had earnings per diluted share of $1.44 compared to $1.27 for the same period in 2025.
Return on average assets for the second quarter of 2026 was 1.37% while return on average tangible common equity was 17.95%. These compare to return on average assets of 1.34% and return on average tangible common equity of 17.78% in the first quarter of 2026.
Second quarter 2026 highlights include:
- Robust net interest margin of 3.96%, or 3.98% on a fully tax-equivalent basis
- 1 bp decline from first quarter driven by a 7 bp decline in asset yields, which was partially offset by a 6 bp decrease in funding costs
- Decline in loan accretion diluted net interest margin 5 bps; accretion decline primarily related to lower-than-expected prepayment rates on acquired mortgage loans
- Noninterest income of $73.8 million; $71.9 million on an adjustedbasis
- Adjustments include a $0.3 million loss on securities and $2.2 million of acquisition-related adjustments
- Leasing business income continues strong performance with a 5.3% increase from first quarter to $22.8 million
- Other noninterest income increased $3.6 million, or 111.3%, from the linked quarter, due to higher income from bank owned life insurance and limited partnership investments
- Foreign exchange income of $13.1 million
- Noninterest expenses of $161.5 million, or $149.1 million as adjusted; 3.7% decrease from linked quarter
- Adjustments include $11.6 million of acquisition related expenses and $0.8 million of amortization of tax credit investments and other expenses not expected to recur
- Decrease from prior quarter driven by lower compensation costs
- Efficiency ratio of 61.2%; 56.8% as adjusted
(1) Non-GAAP measure. For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled “Use of Non-GAAP Financial Measures” in this release and “Appendix: Non-GAAP to GAAP Reconciliation” in the accompanying slide presentation.
- Strong loan growth during the quarter
- End of period loan balances increased $240 million compared to the linked quarter
- Quarterly growth was broad-based, highlighted by C&I, Summit and seasonal growth from Agile
- Stable deposit balances during the quarter
- Total average deposit balances increased $41 million, or 0.9% on an annualized basis
- Growth in interest-bearing demand accounts and seasonal influx of public funds offset a decline in time deposits and brokered CDs
- Excluding brokered CD, average deposits increased $168.6 million
- Total Allowance for Credit Losses of $208.2 million; Total quarterly provision expense of $8.2 million
- Loans and leases - ACL of $189.9 million
- ACL to total loans of 1.38%; increased 2 bps from linked quarter
- Unfunded Commitments - ACL of $18.3 million
- Annualized net charge-offs were 20 bps of total loans; 15 bp decline from linked quarter
- Slight declines in classified and nonperforming assets
- Capital ratios remain strong
- Total capital ratio increased 5 bps to 15.75%
- Tier 1 common equity increased 11 bps to 12.33%
- Tangible common equity of 8.24%; 9.30%excluding impact from AOCI
- Tangible book value per share of $16.64; 3.0% increase from linked quarter
Additionally, the Board of Directors approved a quarterly dividend of $0.26 per common share for the next regularly scheduled dividend, payable on September 15, 2026 to shareholders of record as of September 1, 2026.
Archie Brown, President and CEO commented on Second Quarter results, “The second quarter was another active quarter as we remained focused on post-integration efforts related to the Westfield acquisition and successfully converted BankFinancial systems. Our second quarter operating results were strong, and we are very pleased with our performance. Adjusted net income for the period was a record $83.9 million or $0.80 per share, with an adjusted return on assets of 1.50% and an adjusted return on tangible common equity of 19.7%. These adjusted earnings per share represented an 8% increase from the second quarter of 2025 and were driven by increases in earning assets from a combination of organic loan growth and our recent acquisitions. Our net interest margin was stable at approximately 4.00% as lower funding costs offset a decline in loan accretion income. Assuming no significant changes in interest rates, we expect our margin to remain stable over the near-term.”
Mr. Brown continued, “Loan growth for the quarter was 7% on an annualized basis, and reflected continued momentum across the portfolio with C&I, Agile and Summit being the primary drivers of our increase in balances. Loan originations increased 23% over the first quarter and advanced stage pipelines remain strong heading into the back half of the year. We expect loan production to remain healthy and contribute to solid growth in the third quarter.”
Mr. Brown commented on fee income and expenses, “Second quarter adjusted fee income was below our expectations. After a very strong first quarter, lower foreign exchange, swap income and investment banking fees led to a decline in total noninterest income compared to the linked quarter. While results in these business lines can vary from quarter to quarter, we anticipate a rebound in the third quarter. Conversely, adjusted noninterest expenses were materially lower than the linked quarter, driven by lower commission expense, payroll taxes and acquisition-related synergies. As of June 30th, virtually all of the expected Westfield cost reductions have been realized, while savings related to the BankFinancial acquisition will gradually phase in over the course of the third quarter with full synergies expected by quarter-end.”
Mr. Brown commented on asset quality and capital, “Asset quality was stable for the quarter with net charge-offs declining by 15 basis points to 0.20% of total loans. Capital levels remain strong with tangible common equity increasing to 8.2% and tangible book value increasing 3% from the linked quarter to $16.64. No shares were repurchased during the quarter as we focused on integrating recent acquisitions and preparing for the acquisition of Finward.”
(1) Non-GAAP measure. For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled “Use of Non-GAAP Financial Measures” in this release and “Appendix: Non-GAAP to GAAP Reconciliation” in the accompanying slide presentation.
Mr. Brown concluded, “The second quarter was another great quarter for our Company. We achieved record earnings while successfully integrating two bank acquisitions and positioning the Company for continued success in the second half of the year. Regarding the acquisitions, we are most pleased with how our newer associates have assimilated into the Company. They remain deeply committed to serving their clients and communities, and their efforts have been instrumental in strong client retention levels. We are thankful for their dedication, hard work and client-focused approach over the past year. I am very proud of the work our teams have done throughout the integration process, and their efforts position us for success in our newly expanded markets.”
Full detail of the Company’s second quarter 2026 performance is provided in the accompanying financial statements and slide presentation.
Finward Bancorp Acquisition
- First Financial Bancorp. has agreed to acquire Finward Bancorp, the holding company for Peoples Bank, headquartered in Munster, Indiana
- Strategically expands First Financial's presence in northwest Indiana and Chicago, with the addition of a low cost core deposit franchise and 24 locations
- Finward has approximately $2.0 billion in assets, $1.7 billion in deposits, $1.5 billion in loans and $412 million in assets under management
- Transaction is expected to be approximately 5% accretive to First Financial’s earnings per share
First Financial Bancorp. (Nasdaq: FFBC) and Finward Bancorp (Nasdaq: FNWD) jointly announced today that they have entered into an agreement by which First Financial will acquire Munster-based Finward in an all-stock transaction, further expanding First Financial’s presence in the economically robust Chicagoland market with a strong core deposit franchise including 24 financial centers and a 116 year presence in the Northwest Indiana and Chicago markets. Combined with the 15 retail locations from First Financial’s recent acquisition in the Chicagoland market, the Finward acquisition enhances First Financial’s market presence and increases its pro forma deposits in the Chicago metropolitan statistical area by 75% to over $4 billion.
"The addition of Finward Bancorp and Peoples Bank is expected to strategically expand First Financial’s ability to serve the consumers and businesses of the Chicagoland and Northwest Indiana markets. We are excited to partner with a bank with a similar operating philosophy and strong credit culture,” said Archie Brown, President and Chief Executive Officer of First Financial Bank. “We have built an impressive combination of retail and commercial banking services, wealth management services, and specialty banking solutions, complemented by our client-centered, community-focused business model, that offers an alternative to larger banks. To demonstrate our further commitment to Chicago and Northwest Indiana, First Financial has committed to donate $500,000 to its Foundation for the benefit of local organizations in the communities served by Finward, in addition to the $1 million we donated to the Foundation when we entered the Chicago market with the completed acquisition of BankFinancial Corporation in January 2026.”
Upon completion of the transaction, Finward’s consumer, trust/wealth management and commercial credit lines of business will be incorporated into First Financial’s respective business lines, and Peoples Bank employees will become First Financial associates.
“This partnership represents an exciting next chapter for our organization and the communities we serve,” said Benjamin Bochnowski, Chief Executive Officer of Peoples Bank. “First Financial shares our deep commitment to customers, employees, shareholders, and the communities that have placed their trust in us for more than 100 years. Together, we are accelerating our common strategy to better serve the Chicagoland and Northwest Indiana markets. We are creating a stronger regional banking franchise with expanded capabilities, greater resources, and a sharper focus on delivering exceptional service. We are confident this partnership will create meaningful opportunities for our customers and employees, while preserving the community-centered values that have defined our organization for generations.”
Through this addition, First Financial continues its recent period of growth, including the recent acquisitions of Westfield Bancorp in Northeast Ohio and BankFinancial Corporation in Chicago, and its commercial banking expansion into Chicago, Cleveland and Grand Rapids. First Financial’s Midwestern base includes Chicago, IL; Cincinnati, Dayton, Cleveland and Columbus, OH; Indianapolis, IN; and Louisville, KY. The acquisition of Finward enhances First Financial’s existing Chicagoland footprint that includes its commercial loan production office in Fulton Market; the Agile Premium Finance division in Lincolnshire, IL; and Bannockburn Capital Markets in downtown Chicago. Additionally in the area, First Financial offers retail and business banking solutions in Northwest Indiana and Northeast Illinois.
Transaction Terms
Under the terms of the agreement, each outstanding share of Finward common stock will be converted into the right to receive 1.35 shares of First Financial common stock, valuing the transaction at approximately $208 million, based on First Financial’s closing stock price on July 20, 2026. The transaction is expected to be approximately 5% accretive to First Financial’s earnings per share, and First Financial’s tangible book value per share (“TBV”) at closing is estimated to be only slightly diluted (0.4% dilution) with an anticipated TBV earnback of 0.6 years. The merger agreement has been unanimously approved by the Boards of Directors of First Financial and Finward.
The transaction is expected to close in the fourth quarter of 2026, subject to satisfaction of customary closing conditions, regulatory approvals and approval of Finward’s shareholders.
Transaction Advisors
Morgan Stanley & Co. LLC is serving as financial advisor to First Financial. Stephens Inc. is serving as financial advisor to Finward and rendered a fairness opinion to Finward’s Board of Directors. Squire Patton Boggs, (US) LLP is serving as legal counsel to First Financial. Barack Ferrazzano Kirschbaum & Nagelberg LLP is serving as legal counsel to Finward.
Teleconference / Webcast Information
First Financial’s executive management will host a conference call to discuss the Company’s financial and operating results on Wednesday, July 22, 2026 at 8:30 a.m. Eastern Time. Members of the public who would like to listen to the conference call should dial (833) 461-5787 (U.S. toll free), meeting ID 657340574. The number should be dialed five to ten minutes prior to the start of the conference call. The conference call will also be accessible as an audio webcast via the Investor Relations section of the Company’s website at www.bankatfirst.com. The webcast will be archived on the Investor Relations section of the Company’s website for 12 months.
Press Release and Additional Information on Website
This press release as well as supplemental information are available to the public through the Investor Relations section of First Financial's website at www.bankatfirst.com.
Use of Non-GAAP Financial Measures
This earnings release contains GAAP financial measures and Non-GAAP financial measures where management believes it to be helpful in understanding the Company’s results of operations or financial position. Where Non-GAAP financial measures are used, the comparable GAAP financial measures, as well as a reconciliation to the comparable GAAP financial measure, can be found in the section titled “Appendix: Non-GAAP to GAAP Reconciliation” in the accompanying slide presentation.
Forward-Looking Statements
Forward-looking statements notice
Certain statements in this press release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder, which statements involve inherent risks and uncertainties. Examples of forward-looking statements include, but are not limited to, (a) statements regarding First Financial Bancorp's (the "Company" or "First Financial") operations, such as (i) our future operating or financial performance, including revenues, income or loss and earnings per share, (ii) future common stock dividends, (iii) our capital structure, including future capital levels, (iv) our plans, objectives and strategies, and (v) the assumptions that underlie our forward-looking statements; and (b) statements regarding the proposed transaction, such as (i) statements regarding the outlook and expectations of First Financial and Finward Bancorp ("Finward"), respectively, with respect to the proposed transaction, (ii) the strategic benefits and financial benefits of the proposed transaction, including the expected impact of the proposed transactions on the combined First Financial’s future financial performance (including anticipated accretion to earnings per share, the tangible book value earn-back period and other operating and return metrics), (iii) the timing of the closing of the proposed transaction, and (iv) the ability to successfully integrate the combined businesses. Such statements are often characterized by the use of qualified words (and their derivatives) such as “may,” “will,” “anticipate,” “could,” “should,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “plan,” “project” and “intend,” as well as words of similar meaning or other statements concerning opinions or judgment of First Financial or Finward or their respective management about future events. Forward-looking statements are based on assumptions as of the time they are made and are subject to risks, uncertainties and other factors that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence, which could cause actual results to differ materially from anticipated results expressed or implied by such forward-looking statements. Any reference to forward-looking statements by Finward herein is solely related to the proposed transaction. Such risks, uncertainties and assumptions include, among others, the following:
Risks, uncertainties and assumptions regarding First Financial’s operations
- economic, market, liquidity, credit, interest rate, operational and technological risks associated with First Financial’s business;
- future credit quality and performance, including our expectations regarding future loan losses and our allowance for credit losses;
- the effect of and changes in policies and laws or regulatory agencies, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and other legislation and regulation relating to the banking industry;
- management’s ability to effectively execute its business plans;
- pursuit of mergers and acquisitions, including costs or difficulties related to the acquisition and/or integration of any acquired companies;
- the possibility that any of the anticipated benefits of First Financial’s prior or contemplated acquisitions will not be realized or will not be realized within the expected time period;
- the effect of changes in accounting policies and practices;
- changes in consumer spending, borrowing and saving and changes in unemployment;
- changes in customers’ performance and creditworthiness;
- the costs and effects of litigation and of unexpected or adverse outcomes in such litigation;
- current and future economic and market conditions, including the effects of changes in housing prices, fluctuations in unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, trade and tariff policies, and any slowdown in global economic growth;
- our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms;
- financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services;
- the effect of the current interest rate environment or changes in interest rates or in the level or composition of our assets or liabilities on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgage loans held for sale;
- the effect of a fall in stock market prices on our brokerage, asset and wealth management businesses;
- a failure in or breach of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber attacks;
- the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin; and
- our ability to develop and execute effective business plans and strategies.
Risks, uncertainties and assumptions regarding the proposed transaction
- the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the merger agreement;
- the failure to obtain necessary regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined First Financial or the expected benefits of the proposed transaction) and the possibility that the proposed transaction does not close when expected or at all because required regulatory approvals, the approval by Finward’s shareholders, or other approvals and the other conditions to closing are not received or satisfied on a timely basis or at all;
- the outcome of any legal proceedings that may be instituted against First Financial or Finward;
- the possibility that the anticipated benefits of the proposed transaction, including anticipated synergies and strategic gains, are not realized when expected or at all, including as a result of changes in, or problems arising from, general economic and market conditions, interest and exchange rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which First Financial and Finward operate;
- the possibility that the integration of the two companies may be more difficult, time-consuming or costly than expected;
- the impact of purchase accounting with respect to the proposed transaction, or any change in the assumptions used regarding the assets acquired and liabilities assumed to determine their fair value and credit marks;
- the possibility that the proposed transaction may be more expensive or take longer to complete than anticipated, including as a result of unexpected factors or events;
- the diversion of management’s attention from ongoing business operations and opportunities;
- potential adverse reactions of First Financial’s or Finward’s customers or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed transaction;
- a material adverse change in the financial condition of First Financial or Finward;
- changes in First Financial’s share price before closing;
- risks relating to the potential dilutive effect of shares of First Financial’s common stock to be issued in the proposed transaction;
- general competitive, economic, political and market conditions;
- the ability to retain key employees, management personnel and other associates of First Financial and Finward following announcement or consummation of the proposed transaction;
- major catastrophes such as earthquakes, floods or other natural or human disasters, including infectious disease outbreaks; and
- other factors that may affect future results of First Financial or Finward, including, among others, changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; changes in interest rates; deposit flows; inflation; customer borrowing, repayment, investment and deposit practices; the impact, extent and timing of technological changes; capital management activities; and other actions of the Federal Reserve Board, the Ohio Division of Financial Institutions, the Indiana Department of Financial Institutions, and any other state or federal legislative and regulatory actions and reforms.
These factors are not necessarily all of the factors that could cause First Financial, Finward, or the combined company’s actual results, performance or achievements to differ materially from those expressed in or implied by any of the forward-looking statements. Other factors, including unknown or unpredictable factors, also could harm the results of First Financial, Finward, or the combined company.
Forward-looking statements notice
Although each of First Financial and Finward believes that its expectations with respect to forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual results of First Financial or Finward (as related to the proposed transaction) will not differ materially from any projected future results expressed or implied by such forward-looking statements. Additional factors that could cause results to differ materially from those described above can be found in each of First Financial’s and Finward’s most recent annual report on Form 10-K for the fiscal year ended December 31, 2025, quarterly reports on Form 10-Q, and other documents subsequently filed by First Financial and Finward with the Securities Exchange Commission (“SEC”). The actual results anticipated for the proposed transaction or First Financial’s operations may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on First Financial, Finward or each of their respective businesses or operations. Investors are cautioned not to rely too heavily on any such forward-looking statements. First Financial and Finward urge you to consider all of these risks, uncertainties and other factors carefully in evaluating all such forward-looking statements made by First Financial and Finward. Forward-looking statements speak only as of the date they are made, and First Financial and Finward undertake no obligation to update or clarify these forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.
No Offer or Solicitation
This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities or the solicitation of any vote or approval with respect to the proposed transaction between First Financial and Finward. No offer of securities shall be made except by means of a prospectus meeting the requirements of the Securities Act of 1933, as amended, and no offer to sell or solicitation of an offer to buy shall be made in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
Important Additional Information about the Transaction and Where to Find It
In connection with the proposed transaction, First Financial intends to file with the SEC a Registration Statement on Form S-4 (the “Registration Statement”) to register the shares of First Financial capital stock to be issued in connection with the proposed transaction. The Registration Statement will include a proxy statement of Finward and a prospectus of First Financial (the “Proxy Statement/Prospectus”), and First Financial and Finward may file with the SEC other relevant documents concerning the proposed transaction. BEFORE MAKING ANY VOTING OR INVESTMENT DECISION, INVESTORS AND SHAREHOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT AND PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED TRANSACTION WHEN THEY BECOME AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT FIRST FINANCIAL, FINWARD AND THE PROPOSED TRANSACTION AND RELATED MATTERS.
A copy of the Registration Statement, Proxy Statement/Prospectus, as well as other filings containing information about First Financial and Finward, may be obtained, free of charge, at the SEC’s website (www.sec.gov) when they are filed. Copies of documents filed with the SEC by First Financial will be made available free of charge in the "Investor Relations" section of First Financial's website, https://www.bankatfirst.com/about/investor-relations.html. Copies of documents filed with the SEC by Finward will be made available free of charge in the "Investor Relations" section of Finward's website, https://www.investorrelations.ibankpeoples.com. The information on First Financial’s and Finward’s websites is not, and shall not be deemed to be, a part of this communication or incorporated into other filings either First Financial makes with the SEC.
Participants in Solicitation
Finward and its directors, executive officers, management and employees may be deemed to be participants in the solicitation of proxies in respect of the Merger. Information concerning Finward’s participants is set forth in the Proxy Statement, dated April 3, 2026, for Finward’s 2026 annual meeting of stockholders as filed with the SEC on Schedule 14A. Additional information regarding the participants in the solicitation of proxies in respect of the proposed transaction and interests of participants of Finward in the solicitation of proxies in respect of the Merger will be included in the Registration Statement and Proxy Statement/Prospectus to be filed with the SEC. Free copies of these documents, when available, may be obtained as described in the preceding paragraph.
About First Financial Bancorp.
First Financial Bancorp. is a Cincinnati, Ohio based bank holding company. As of June 30, 2026, the Company had $22.4 billion in assets, $13.7 billion in loans, $17.6 billion in deposits and $3.0 billion in shareholders’ equity. The Company’s subsidiary, First Financial Bank, founded in 1863, provides banking and financial services products through its six lines of business: Commercial, Retail Banking, Investment Commercial Real Estate, Mortgage Banking, Commercial Finance and Wealth Management. These business units provide traditional banking services to business and retail clients. Wealth Management provides wealth planning, portfolio management, trust and estate, brokerage and retirement plan services and had approximately $4.6 billion in assets under management as of June 30, 2026. The Company operated 151 full service banking centers as of June 30, 2026, located in Ohio, Indiana, Kentucky and Illinois, while the Commercial Finance business lends into targeted industry verticals on a nationwide basis. In 2025, First Financial Bank received its second consecutive Outstanding rating from the Federal Reserve for its performance under the Community Reinvestment Act and was recognized as a Gallup Exceptional Workplace Award winner, one of only 70 Gallup clients worldwide to receive this designation. Additional information about the Company, including its products, services and banking locations, is available at www.bankatfirst.com.
About Finward Bancorp
Finward Bancorp is a locally managed and independent financial holding company headquartered in Munster, Indiana, whose activities are primarily limited to holding the stock of Peoples Bank. Peoples Bank provides a wide range of personal, business, electronic and wealth management financial services from its 24 locations in Lake and Porter Counties in Northwest Indiana and Chicagoland. Finward Bancorp’s common stock is quoted on The NASDAQ Stock Market, LLC under the symbol FNWD. The website ibankpeoples.com provides information on Peoples Bank’s products and services, and Finward Bancorp’s investor relations.
Contact Information
Selected Financial Information
June 30, 2026
(unaudited)
| Contents | Page |
| Consolidated Financial Highlights | 2 |
| Consolidated Statements of Income | 3 |
| Consolidated Quarterly Statements of Income | 4-5 |
| Consolidated Statements of Condition | 6 |
| Average Consolidated Statements of Condition | 7 |
| Net Interest Margin Rate / Volume Analysis | 8-9 |
| Credit Quality | 10 |
| Capital Adequacy | 11 |
CONSOLIDATED FINANCIAL HIGHLIGHTS
| Three Months Ended, | Six months ended, |
|---|
| June 30, | Mar. 31, | Dec. 31, | Sep. 30, | June 30, | June 30, |
|---|
| 2026 | 2026 | 2025 | 2025 | 2025 | 2026 | 2025 |
|---|
| RESULTS OF OPERATIONS | | | | | | | |
| Net income | $76,456 | $74,445 | $62,393 | $71,923 | $69,996 | $150,901 | $121,289 |
| Net earnings per share - basic | $0.74 | $0.72 | $0.65 | $0.76 | $0.74 | $1.45 | $1.28 |
| Net earnings per share - diluted | $0.73 | $0.71 | $0.64 | $0.75 | $0.73 | $1.44 | $1.27 |
| Dividends declared per share | $0.25 | $0.25 | $0.25 | $0.25 | $0.24 | $0.50 | $0.48 |
| KEY FINANCIAL RATIOS | | | | | | | |
| Return on average assets | 1.37% | 1.34% | 1.22% | 1.54% | 1.52% | 1.36% | 1.33% |
| Return on average shareholders' equity | 10.39% | 10.24% | 9.18% | 11.08% | 11.16% | 10.32% | 9.83% |
| Return on average tangible shareholders' equity | 17.95% | 17.78% | 16.27% | 19.11% | 19.61% | 17.87% | 17.44% |
| Net interest margin | 3.96% | 3.97% | 3.96% | 3.99% | 4.01% | 3.96% | 3.93% |
| Net interest margin (fully tax equivalent) (1)(2) | 3.98% | 3.99% | 3.98% | 4.02% | 4.05% | 3.98% | 3.96% |
| Ending shareholders' equity as a percent of ending assets | 13.31% | 12.91% | 13.11% | 14.18% | 13.73% | 13.31% | 13.73% |
| Ending tangible shareholders' equity as a percent of: | | | | | | | |
| Ending tangible assets | 8.24% | 7.87% | 7.79% | 8.87% | 8.40% | 8.24% | 8.40% |
| Risk-weighted assets | 10.62% | 10.51% | 9.76% | 10.94% | 10.44% | 10.62% | 10.44% |
| Average shareholders' equity as a percent of average assets | 13.18% | 13.12% | 13.31% | 13.87% | 13.66% | 13.15% | 13.52% |
| Average tangible shareholders' equity as a percent of average tangible assets | 8.08% | 8.01% | 7.97% | 8.54% | 8.26% | 8.04% | 8.10% |
| Book value per share | $28.46 | $28.02 | $28.11 | $27.48 | $26.71 | $28.46 | $26.71 |
| Tangible book value per share | $16.64 | $16.15 | $15.74 | $16.19 | $15.40 | $16.64 | $15.40 |
| Common equity tier 1 ratio | 12.33% | 12.22% | 11.32% | 12.91% | 12.57% | 12.33% | 12.57% |
| Tier 1 ratio | 12.61% | 12.50% | 11.60% | 13.23% | 12.89% | 12.61% | 12.89% |
| Total capital ratio | 15.75% | 15.70% | 15.46% | 15.32% | 14.98% | 15.75% | 14.98% |
| Leverage ratio | 9.66% | 9.39% | 9.53% | 10.50% | 10.28% | 9.66% | 10.28% |
| AVERAGE BALANCE SHEET ITEMS | | | | | | | |
| Loans | $13,619,039 | $14,028,324 | $12,812,267 | $11,806,065 | $11,792,840 | $13,822,551 | $11,758,972 |
| Investment securities | 5,079,730 | 4,769,261 | 3,988,846 | 3,552,014 | 3,478,921 | 4,925,353 | 3,445,443 |
| Interest-bearing deposits with other banks | 605,647 | 596,094 | 647,347 | 610,074 | 542,815 | 600,897 | 579,112 |
| Total earning assets | $19,304,416 | $19,393,679 | $17,448,460 | $15,968,153 | $15,814,576 | $19,348,801 | $15,783,527 |
| Total assets | $22,391,439 | $22,459,721 | $20,256,539 | $18,566,188 | $18,419,437 | $22,425,392 | $18,394,161 |
| Noninterest-bearing deposits | $3,811,391 | $3,745,002 | $3,436,709 | $3,124,277 | $3,143,081 | $3,778,380 | $3,117,203 |
| Interest-bearing deposits | 13,875,384 | 13,900,550 | 12,521,948 | 11,387,648 | 11,211,694 | 13,887,898 | 11,180,835 |
| Total deposits | $17,686,775 | $17,645,552 | $15,958,657 | $14,511,925 | $14,354,775 | $17,666,278 | $14,298,038 |
| Borrowings | $891,636 | $1,012,161 | $848,650 | $823,346 | $910,573 | $951,566 | $955,704 |
| Shareholders' equity | $2,951,237 | $2,947,585 | $2,695,581 | $2,575,203 | $2,515,747 | $2,949,421 | $2,486,926 |
| CREDIT QUALITY RATIOS | | | | | | | |
| Allowance to ending loans | 1.38% | 1.36% | 1.39% | 1.38% | 1.34% | 1.38% | 1.34% |
| Allowance to nonaccrual loans | 197.51% | 182.73% | 183.18% | 213.18% | 206.08% | 197.51% | 206.08% |
| Nonaccrual loans to total loans | 0.70% | 0.75% | 0.76% | 0.65% | 0.65% | 0.70% | 0.65% |
| Nonperforming assets to ending loans, plus OREO | 0.70% | 0.75% | 0.76% | 0.65% | 0.65% | 0.70% | 0.65% |
| Nonperforming assets to total assets | 0.43% | 0.44% | 0.48% | 0.41% | 0.41% | 0.43% | 0.41% |
| Classified assets to total assets | 1.01% | 1.02% | 1.11% | 1.18% | 1.15% | 1.01% | 1.15% |
| Net charge-offs to average loans (annualized) | 0.20% | 0.35% | 0.27% | 0.18% | 0.21% | 0.27% | 0.28% |
Non-GAAP measure. For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled “Use of Non-GAAP Financial Measures” in this release and “Appendix: Non-GAAP to GAAP Reconciliation” in the accompanying slide presentation.
The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest margin and net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.
June 30, 2026 regulatory capital ratios are preliminary.
Includes loans held for sale.
CONSOLIDATED STATEMENTS OF INCOME
| Three months ended, | Six months ended, |
|---|
| June 30, | June 30, |
|---|
| 2026 | 2025 | % Change | 2026 | 2025 | % Change |
|---|
| Interest income | | | | | | |
| Loans and leases, including fees | $219,164 | $201,460 | 8.8% | $444,115 | $398,623 | 11.4% |
| Investment securities | | | | | | |
| Taxable | 53,904 | 36,243 | 48.7% | 103,395 | 70,644 | 46.4% |
| Tax-exempt | 2,472 | 2,233 | 10.7% | 4,998 | 4,437 | 12.6% |
| Total investment securities interest | 56,376 | 38,476 | 46.5% | 108,393 | 75,081 | 44.4% |
| Other earning assets | 5,381 | 5,964 | (9.8)% | 10,831 | 12,615 | (14.1)% |
| Total interest income | 280,921 | 245,900 | 14.2% | 563,339 | 486,319 | 15.8% |
| Interest expense | | | | | | |
| Deposits | 79,250 | 75,484 | 5.0% | 158,985 | 154,125 | 3.2% |
| Short-term borrowings | 4,997 | 6,393 | (21.8)% | 10,165 | 13,938 | (27.1)% |
| Long-term borrowings | 6,297 | 5,754 | 9.4% | 14,202 | 10,691 | 32.8% |
| Total interest expense | 90,544 | 87,631 | 3.3% | 183,352 | 178,754 | 2.6% |
| Net interest income | 190,377 | 158,269 | 20.3% | 379,987 | 307,565 | 23.5% |
| Provision for credit losses-loans and leases | 12,933 | 9,084 | 42.4% | 18,963 | 18,225 | 4.0% |
| Provision for credit losses-unfunded commitments | (4,743) | 718 | (760.6)% | (2,233) | 277 | (906.1)% |
| Net interest income after provision for credit losses | 182,187 | 148,467 | 22.7% | 363,257 | 289,063 | 25.7% |
| Noninterest income | | | | | | |
| Service charges on deposit accounts | 8,896 | 7,766 | 14.6% | 17,909 | 15,229 | 17.6% |
| Wealth management fees | 8,252 | 7,787 | 6.0% | 18,734 | 15,924 | 17.6% |
| Bankcard income | 3,032 | 3,737 | (18.9)% | 6,612 | 7,047 | (6.2)% |
| Client derivative fees | 1,443 | 1,674 | (13.8)% | 5,453 | 3,245 | 68.0% |
| Foreign exchange income | 13,101 | 13,760 | (4.8)% | 29,414 | 26,304 | 11.8% |
| Leasing business income | 22,750 | 20,797 | 9.4% | 44,358 | 39,500 | 12.3% |
| Net gains from sales of loans | 6,658 | 6,687 | (0.4)% | 12,705 | 11,009 | 15.4% |
| Net gain (loss) on investment securities | (337) | 243 | (238.7)% | (1,597) | (9,706) | (83.5)% |
| Gain on bargain purchase | 3,189 | 0 | 100.0% | 12,081 | 0 | 100.0% |
| Other | 6,807 | 5,612 | 21.3% | 10,028 | 10,594 | (5.3)% |
| Total noninterest income | 73,791 | 68,063 | 8.4% | 155,697 | 119,146 | 30.7% |
| Noninterest expenses | | | | | | |
| Salaries and employee benefits | 86,917 | 74,917 | 16.0% | 186,773 | 150,155 | 24.4% |
| Net occupancy | 7,535 | 5,845 | 28.9% | 15,088 | 11,864 | 27.2% |
| Furniture and equipment | 4,310 | 3,441 | 25.3% | 9,003 | 7,254 | 24.1% |
| Data processing | 13,554 | 9,020 | 50.3% | 26,208 | 17,779 | 47.4% |
| Marketing | 3,616 | 2,737 | 32.1% | 6,268 | 4,755 | 31.8% |
| Professional services | 7,387 | 3,549 | 108.1% | 11,373 | 6,288 | 80.9% |
| Amortization of tax credit investments | 669 | 111 | 502.7% | 1,338 | 223 | 500.0% |
| FDIC assessments | 2,878 | 2,611 | 10.2% | 6,523 | 5,670 | 15.0% |
| Intangible amortization | 6,229 | 2,358 | 164.2% | 12,490 | 4,717 | 164.8% |
| Leasing business expense | 14,633 | 13,155 | 11.2% | 28,762 | 25,957 | 10.8% |
| Other | 13,814 | 10,927 | 26.4% | 27,124 | 22,085 | 22.8% |
| Total noninterest expenses | 161,542 | 128,671 | 25.5% | 330,950 | 256,747 | 28.9% |
| Income before income taxes | 94,436 | 87,859 | 7.5% | 188,004 | 151,462 | 24.1% |
| Income tax expense | 17,980 | 17,863 | 0.7% | 37,103 | 30,173 | 23.0% |
| Net income | $76,456 | $69,996 | 9.2% | $150,901 | $121,289 | 24.4% |
| ADDITIONAL DATA | | | | | | |
| Net earnings per share - basic | $0.74 | $0.74 | | $1.45 | $1.28 | |
| Net earnings per share - diluted | $0.73 | $0.73 | | $1.44 | $1.27 | |
| Dividends declared per share | $0.25 | $0.24 | | $0.50 | $0.48 | |
| Return on average assets | 1.37% | 1.52% | | 1.36% | 1.33% | |
| Return on average shareholders' equity | 10.39% | 11.16% | | 10.32% | 9.83% | |
| Interest income | $280,921 | $245,900 | 14.2% | $563,339 | $486,319 | 15.8% |
| Tax equivalent adjustment | 1,161 | 1,246 | (6.8)% | 2,347 | 2,459 | (4.6)% |
| Interest income - tax equivalent | 282,082 | 247,146 | 14.1% | 565,686 | 488,778 | 15.7% |
| Interest expense | 90,544 | 87,631 | 3.3% | 183,352 | 178,754 | 2.6% |
| Net interest income - tax equivalent | $191,538 | $159,515 | 20.1% | $382,334 | $310,024 | 23.3% |
| Net interest margin | 3.96% | 4.01% | | 3.96% | 3.93% | |
| Net interest margin (fully tax equivalent) | 3.98% | 4.05% | | 3.98% | 3.96% | |
| Full-time equivalent employees | 2,371 | 2,033 | | | | |
The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
| 2026 |
|---|
| Second | First | Year to | % Change |
|---|
| Quarter | Quarter | Date | Linked Qtr. |
|---|
| Interest income | | | | |
| Loans and leases, including fees | $219,164 | $224,951 | $444,115 | (2.6)% |
| Investment securities | | | | |
| Taxable | 53,904 | 49,491 | 103,395 | 8.9% |
| Tax-exempt | 2,472 | 2,526 | 4,998 | (2.1)% |
| Total investment securities interest | 56,376 | 52,017 | 108,393 | 8.4% |
| Other earning assets | 5,381 | 5,450 | 10,831 | (1.3)% |
| Total interest income | 280,921 | 282,418 | 563,339 | (0.5)% |
| Interest expense | | | | |
| Deposits | 79,250 | 79,735 | 158,985 | (0.6)% |
| Short-term borrowings | 4,997 | 5,168 | 10,165 | (3.3)% |
| Long-term borrowings | 6,297 | 7,905 | 14,202 | (20.3)% |
| Total interest expense | 90,544 | 92,808 | 183,352 | (2.4)% |
| Net interest income | 190,377 | 189,610 | 379,987 | 0.4% |
| Provision for credit losses-loans and leases | 12,933 | 6,030 | 18,963 | 114.5% |
| Provision for credit losses-unfunded commitments | (4,743) | 2,510 | (2,233) | (289.0)% |
| Net interest income after provision for credit losses | 182,187 | 181,070 | 363,257 | 0.6% |
| Noninterest income | | | | |
| Service charges on deposit accounts | 8,896 | 9,013 | 17,909 | (1.3)% |
| Wealth management fees | 8,252 | 10,482 | 18,734 | (21.3)% |
| Bankcard income | 3,032 | 3,580 | 6,612 | (15.3)% |
| Client derivative fees | 1,443 | 4,010 | 5,453 | (64.0)% |
| Foreign exchange income | 13,101 | 16,313 | 29,414 | (19.7)% |
| Leasing business income | 22,750 | 21,608 | 44,358 | 5.3% |
| Net gains from sales of loans | 6,658 | 6,047 | 12,705 | 10.1% |
| Net gain (loss) on investment securities | (337) | (1,260) | (1,597) | (73.3)% |
| Gain on bargain purchase | 3,189 | 8,892 | 12,081 | (64.1)% |
| Other | 6,807 | 3,221 | 10,028 | 111.3% |
| Total noninterest income | 73,791 | 81,906 | 155,697 | (9.9)% |
| Noninterest expenses | | | | |
| Salaries and employee benefits | 86,917 | 99,856 | 186,773 | (13.0)% |
| Net occupancy | 7,535 | 7,553 | 15,088 | (0.2)% |
| Furniture and equipment | 4,310 | 4,693 | 9,003 | (8.2)% |
| Data processing | 13,554 | 12,654 | 26,208 | 7.1% |
| Marketing | 3,616 | 2,652 | 6,268 | 36.3% |
| Professional services | 7,387 | 3,986 | 11,373 | 85.3% |
| Amortization of tax credit investments | 669 | 669 | 1,338 | 0.0% |
| FDIC assessments | 2,878 | 3,645 | 6,523 | (21.0)% |
| Intangible amortization | 6,229 | 6,261 | 12,490 | (0.5)% |
| Leasing business expense | 14,633 | 14,129 | 28,762 | 3.6% |
| Other | 13,814 | 13,310 | 27,124 | 3.8% |
| Total noninterest expenses | 161,542 | 169,408 | 330,950 | (4.6)% |
| Income before income taxes | 94,436 | 93,568 | 188,004 | 0.9% |
| Income tax expense | 17,980 | 19,123 | 37,103 | (6.0)% |
| Net income | $76,456 | $74,445 | $150,901 | 2.7% |
| ADDITIONAL DATA | | | | |
| Net earnings per share - basic | $0.74 | $0.72 | $1.45 | |
| Net earnings per share - diluted | $0.73 | $0.71 | $1.44 | |
| Dividends declared per share | $0.25 | $0.25 | $0.50 | |
| Return on average assets | 1.37% | 1.34% | 1.36% | |
| Return on average shareholders' equity | 10.39% | 10.24% | 10.32% | |
| Interest income | $280,921 | $282,418 | $563,339 | (0.5)% |
| Tax equivalent adjustment | 1,161 | 1,186 | 2,347 | (2.1)% |
| Interest income - tax equivalent | 282,082 | 283,604 | 565,686 | (0.5)% |
| Interest expense | 90,544 | 92,808 | 183,352 | (2.4)% |
| Net interest income - tax equivalent | $191,538 | $190,796 | $382,334 | 0.4% |
| Net interest margin | 3.96% | 3.97% | 3.96% | |
| Net interest margin (fully tax equivalent) | 3.98% | 3.99% | 3.98% | |
| Full-time equivalent employees | 2,371 | 2,319 | | |
(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
| 2025 |
|---|
| Fourth | Third | Second | First | Full |
|---|
| Quarter | Quarter | Quarter | Quarter | Year |
|---|
| Interest income | | | | | |
| Loans and leases, including fees | $215,663 | $204,865 | $201,460 | $197,163 | $819,151 |
| Investment securities | | | | | |
| Taxable | 40,971 | 36,421 | 36,243 | 34,401 | 148,036 |
| Tax-exempt | 2,363 | 2,195 | 2,233 | 2,204 | 8,995 |
| Total investment securities interest | 43,334 | 38,616 | 38,476 | 36,605 | 157,031 |
| Other earning assets | 6,334 | 6,773 | 5,964 | 6,651 | 25,722 |
| Total interest income | 265,331 | 250,254 | 245,900 | 240,419 | 1,001,904 |
| Interest expense | | | | | |
| Deposits | 78,861 | 77,766 | 75,484 | 78,641 | 310,752 |
| Short-term borrowings | 4,925 | 5,979 | 6,393 | 7,545 | 24,842 |
| Long-term borrowings | 7,550 | 6,023 | 5,754 | 4,937 | 24,264 |
| Total interest expense | 91,336 | 89,768 | 87,631 | 91,123 | 359,858 |
| Net interest income | 173,995 | 160,486 | 158,269 | 149,296 | 642,046 |
| Provision for credit losses-loans and leases | 9,688 | 8,612 | 9,084 | 9,141 | 36,525 |
| Provision for credit losses-unfunded commitments | 412 | 453 | 718 | (441) | 1,142 |
| Net interest income after provision for credit losses | 163,895 | 151,421 | 148,467 | 140,596 | 604,379 |
| Noninterest income | | | | | |
| Service charges on deposit accounts | 8,308 | 7,829 | 7,766 | 7,463 | 31,366 |
| Wealth management fees | 9,288 | 7,351 | 7,787 | 8,137 | 32,563 |
| Bankcard income | 3,590 | 3,589 | 3,737 | 3,310 | 14,226 |
| Client derivative fees | 2,681 | 1,876 | 1,674 | 1,571 | 7,802 |
| Foreign exchange income | 22,696 | 16,666 | 13,760 | 12,544 | 65,666 |
| Leasing business income | 19,523 | 20,997 | 20,797 | 18,703 | 80,020 |
| Net gains from sales of loans | 7,041 | 6,835 | 6,687 | 4,322 | 24,885 |
| Net gain (loss) on investment securities | (12,576) | (42) | 243 | (9,949) | (22,324) |
| Other | 4,216 | 8,424 | 5,612 | 4,982 | 23,234 |
| Total noninterest income | 64,767 | 73,525 | 68,063 | 51,083 | 257,438 |
| Noninterest expenses | | | | | |
| Salaries and employee benefits | 85,123 | 80,607 | 74,917 | 75,238 | 315,885 |
| Net occupancy | 6,315 | 6,003 | 5,845 | 6,019 | 24,182 |
| Furniture and equipment | 3,940 | 3,582 | 3,441 | 3,813 | 14,776 |
| Data processing | 10,465 | 9,591 | 9,020 | 8,759 | 37,835 |
| Marketing | 3,056 | 2,359 | 2,737 | 2,018 | 10,170 |
| Professional services | 6,231 | 2,314 | 3,549 | 2,739 | 14,833 |
| Amortization of tax credit investments | 800 | 112 | 111 | 112 | 1,135 |
| FDIC assessments | 2,923 | 2,611 | 2,611 | 3,059 | 11,204 |
| Intangible amortization | 3,927 | 2,359 | 2,358 | 2,359 | 11,003 |
| Leasing business expense | 13,837 | 13,911 | 13,155 | 12,802 | 53,705 |
| Other | 12,914 | 10,820 | 10,927 | 11,158 | 45,819 |
| Total noninterest expenses | 149,531 | 134,269 | 128,671 | 128,076 | 540,547 |
| Income before income taxes | 79,131 | 90,677 | 87,859 | 63,603 | 321,270 |
| Income tax expense | 16,738 | 18,754 | 17,863 | 12,310 | 65,665 |
| Net income | $62,393 | $71,923 | $69,996 | $51,293 | $255,605 |
| ADDITIONAL DATA | | | | | |
| Net earnings per share - basic | $0.65 | $0.76 | $0.74 | $0.54 | $2.68 |
| Net earnings per share - diluted | $0.64 | $0.75 | $0.73 | $0.54 | $2.66 |
| Dividends declared per share | $0.25 | $0.25 | $0.24 | $0.24 | $0.98 |
| Return on average assets | 1.22% | 1.54% | 1.52% | 1.13% | 1.35% |
| Return on average shareholders' equity | 9.18% | 11.08% | 11.16% | 8.46% | 9.98% |
| Interest income | $265,331 | $250,254 | $245,900 | $240,419 | $1,001,904 |
| Tax equivalent adjustment | 1,227 | 1,248 | 1,246 | 1,213 | 4,934 |
| Interest income - tax equivalent | 266,558 | 251,502 | 247,146 | 241,632 | 1,006,838 |
| Interest expense | 91,336 | 89,768 | 87,631 | 91,123 | 359,858 |
| Net interest income - tax equivalent | $175,222 | $161,734 | $159,515 | $150,509 | $646,980 |
| Net interest margin | 3.96% | 3.99% | 4.01% | 3.84% | 3.95% |
| Net interest margin (fully tax equivalent) | 3.98% | 4.02% | 4.05% | 3.88% | 3.98% |
| Full-time equivalent employees | 2,164 | 1,986 | 2,033 | 2,021 | |
The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.
CONSOLIDATED STATEMENTS OF CONDITION
| June 30, | Mar. 31, | Dec. 31, | Sep. 30, | June 30, | % Change | % Change |
|---|
| 2026 | 2026 | 2025 | 2025 | 2025 | Linked Qtr. | Comp Qtr. |
|---|
| ASSETS | | | | | | | |
| Cash and due from banks | $206,361 | $170,641 | $178,553 | $174,659 | $210,187 | 20.9% | (1.8)% |
| Interest-bearing deposits with other banks | 579,194 | 1,032,259 | 597,338 | 565,080 | 570,173 | (43.9)% | 1.6% |
| Investment securities available-for-sale | 4,733,713 | 4,953,023 | 3,971,932 | 3,422,595 | 3,386,562 | (4.4)% | 39.8% |
| Investment securities held-to-maturity | 46,067 | 49,631 | 58,545 | 71,595 | 72,994 | (7.2)% | (36.9)% |
| Other investments | 137,755 | 137,018 | 129,564 | 117,120 | 122,322 | 0.5% | 12.6% |
| Loans held for sale | 33,125 | 18,280 | 16,953 | 21,466 | 26,504 | 81.2% | 25.0% |
| Loans and leases | | | | | | | |
| Commercial and industrial | 4,842,347 | 4,693,786 | 4,632,241 | 3,838,630 | 3,927,771 | 3.2% | 23.3% |
| Lease financing | 659,328 | 649,645 | 638,527 | 596,734 | 587,176 | 1.5% | 12.3% |
| Construction real estate | 599,258 | 591,080 | 677,339 | 627,960 | 732,777 | 1.4% | (18.2)% |
| Commercial real estate | 4,548,887 | 4,473,468 | 4,384,556 | 4,048,370 | 3,961,513 | 1.7% | 14.8% |
| Residential real estate | 1,805,044 | 1,831,338 | 1,832,184 | 1,494,464 | 1,492,688 | (1.4)% | 20.9% |
| Home equity | 1,058,175 | 1,026,839 | 1,005,204 | 935,975 | 903,299 | 3.1% | 17.1% |
| Installment | 156,470 | 162,314 | 188,694 | 109,764 | 116,598 | (3.6)% | 34.2% |
| Credit card | 65,405 | 66,371 | 65,325 | 62,654 | 64,374 | (1.5)% | 1.6% |
| Total loans | 13,734,914 | 13,494,841 | 13,424,070 | 11,714,551 | 11,786,196 | 1.8% | 16.5% |
| Less: | | | | | | | |
| Allowance for credit losses | (189,912) | (183,716) | (186,487) | (161,916) | (158,522) | 3.4% | 19.8% |
| Net loans | 13,545,002 | 13,311,125 | 13,237,583 | 11,552,635 | 11,627,674 | 1.8% | 16.5% |
| Premises and equipment | 229,763 | 228,384 | 204,760 | 198,251 | 197,741 | 0.6% | 16.2% |
| Operating leases | 241,742 | 220,061 | 214,003 | 214,667 | 217,100 | 9.9% | 11.4% |
| Goodwill | 1,099,936 | 1,099,543 | 1,099,524 | 1,007,656 | 1,007,656 | 0.0% | 9.2% |
| Other intangibles | 140,705 | 145,927 | 118,832 | 73,797 | 75,458 | (3.6)% | 86.5% |
| Accrued interest and other assets | 1,446,316 | 1,413,923 | 1,301,792 | 1,134,985 | 1,119,884 | 2.3% | 29.1% |
| Total Assets | $22,439,679 | $22,779,815 | $21,129,379 | $18,554,506 | $18,634,255 | (1.5)% | 20.4% |
| LIABILITIES | | | | | | | |
| Deposits | | | | | | | |
| Interest-bearing demand | $3,804,301 | $3,658,155 | $3,360,613 | $2,983,132 | $3,057,232 | 4.0% | 24.4% |
| Savings | 6,423,986 | 6,460,546 | 5,973,532 | 5,029,097 | 4,979,124 | (0.6)% | 29.0% |
| Time | 3,650,043 | 3,817,268 | 3,622,227 | 3,293,707 | 3,201,711 | (4.4)% | 14.0% |
| Total interest-bearing deposits | 13,878,330 | 13,935,969 | 12,956,372 | 11,305,936 | 11,238,067 | (0.4)% | 23.5% |
| Noninterest-bearing | 3,704,899 | 3,982,753 | 3,465,470 | 3,127,512 | 3,131,926 | (7.0)% | 18.3% |
| Total deposits | 17,583,229 | 17,918,722 | 16,421,842 | 14,433,448 | 14,369,993 | (1.9)% | 22.4% |
| FHLB short-term borrowings | 570,000 | 550,000 | 675,000 | 550,000 | 680,000 | 3.6% | (16.2)% |
| Other | 39,532 | 70,457 | 332 | 45,167 | 4,699 | (43.9)% | 741.3% |
| Total short-term borrowings | 609,532 | 620,457 | 675,332 | 595,167 | 684,699 | (1.8)% | (11.0)% |
| Long-term debt | 382,550 | 380,176 | 514,052 | 221,823 | 344,955 | 0.6% | 10.9% |
| Total borrowed funds | 992,082 | 1,000,633 | 1,189,384 | 816,990 | 1,029,654 | (0.9)% | (3.6)% |
| Accrued interest and other liabilities | 876,880 | 919,835 | 748,937 | 672,213 | 676,453 | (4.7)% | 29.6% |
| Total Liabilities | 19,452,191 | 19,839,190 | 18,360,163 | 15,922,651 | 16,076,100 | (2.0)% | 21.0% |
| SHAREHOLDERS' EQUITY | | | | | | | |
| Common stock | 1,792,158 | 1,789,676 | 1,647,618 | 1,641,315 | 1,638,796 | 0.1% | 9.4% |
| Retained earnings | 1,535,765 | 1,485,573 | 1,437,286 | 1,399,577 | 1,351,674 | 3.4% | 13.6% |
| Accumulated other comprehensive income (loss) | (223,720) | (217,430) | (189,942) | (223,000) | (246,384) | 2.9% | (9.2)% |
| Treasury stock, at cost | (116,715) | (117,194) | (125,746) | (186,037) | (185,931) | (0.4)% | (37.2)% |
| Total Shareholders' Equity | 2,987,488 | 2,940,625 | 2,769,216 | 2,631,855 | 2,558,155 | 1.6% | 16.8% |
| Total Liabilities and Shareholders' Equity | $22,439,679 | $22,779,815 | $21,129,379 | $18,554,506 | $18,634,255 | (1.5)% | 20.4% |
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION
| Quarterly Averages | Year-to-Date Averages |
|---|
| June 30, | Mar. 31, | Dec. 31, | Sep. 30, | June 30, | June 30, |
|---|
| 2026 | 2026 | 2025 | 2025 | 2025 | 2026 | 2025 |
|---|
| ASSETS | | | | | | | |
| Cash and due from banks | $182,261 | $227,115 | $178,403 | $165,210 | $174,375 | $204,564 | $169,581 |
| Interest-bearing deposits with other banks | 605,647 | 596,094 | 647,347 | 610,074 | 542,815 | 600,897 | 579,112 |
| Investment securities | 5,079,730 | 4,769,261 | 3,988,846 | 3,552,014 | 3,478,921 | 4,925,353 | 3,445,443 |
| Loans held for sale | 32,458 | 451,139 | 32,425 | 26,366 | 25,026 | 240,642 | 17,660 |
| Loans and leases | | | | | | | |
| Commercial and industrial | 4,723,431 | 4,771,066 | 4,310,399 | 3,890,886 | 3,881,001 | 4,747,117 | 3,834,363 |
| Lease financing | 646,520 | 630,204 | 617,518 | 592,510 | 581,091 | 638,407 | 583,094 |
| Construction real estate | 583,146 | 643,270 | 679,884 | 711,011 | 784,028 | 613,042 | 790,528 |
| Commercial real estate | 4,546,901 | 4,446,231 | 4,240,042 | 3,993,549 | 3,958,730 | 4,496,844 | 3,988,306 |
| Residential real estate | 1,812,228 | 1,834,467 | 1,717,439 | 1,489,942 | 1,485,479 | 1,823,286 | 1,480,618 |
| Home equity | 1,043,805 | 1,016,080 | 981,406 | 919,368 | 891,761 | 1,030,019 | 875,050 |
| Installment | 158,760 | 166,979 | 164,013 | 114,058 | 117,724 | 162,847 | 122,432 |
| Credit card | 71,790 | 68,888 | 69,141 | 68,375 | 68,000 | 70,347 | 66,921 |
| Total loans | 13,586,581 | 13,577,185 | 12,779,842 | 11,779,699 | 11,767,814 | 13,581,909 | 11,741,312 |
| Less: | | | | | | | |
| Allowance for credit losses | (186,331) | (200,745) | (179,275) | (162,417) | (158,170) | (193,498) | (158,188) |
| Net loans | 13,400,250 | 13,376,440 | 12,600,567 | 11,617,282 | 11,609,644 | 13,388,411 | 11,583,124 |
| Premises and equipment | 230,343 | 230,154 | 202,956 | 199,167 | 198,407 | 230,249 | 198,701 |
| Operating leases | 234,460 | 215,318 | 211,091 | 217,404 | 212,684 | 224,942 | 208,953 |
| Goodwill | 1,099,742 | 1,099,543 | 1,069,781 | 1,007,656 | 1,007,656 | 1,099,643 | 1,007,656 |
| Other intangibles | 143,403 | 149,631 | 104,184 | 74,448 | 76,076 | 146,500 | 77,142 |
| Accrued interest and other assets | 1,383,145 | 1,345,026 | 1,220,939 | 1,096,567 | 1,093,833 | 1,364,191 | 1,106,789 |
| Total Assets | $22,391,439 | $22,459,721 | $20,256,539 | $18,566,188 | $18,419,437 | $22,425,392 | $18,394,161 |
| LIABILITIES | | | | | | | |
| Deposits | | | | | | | |
| Interest-bearing demand | $3,762,177 | $3,626,103 | $3,276,425 | $3,036,296 | $3,066,986 | $3,694,516 | $3,078,691 |
| Savings | 6,434,399 | 6,406,223 | 5,740,651 | 5,054,563 | 5,005,526 | 6,420,389 | 4,962,007 |
| Time | 3,678,808 | 3,868,224 | 3,504,872 | 3,296,789 | 3,139,182 | 3,772,993 | 3,140,137 |
| Total interest-bearing deposits | 13,875,384 | 13,900,550 | 12,521,948 | 11,387,648 | 11,211,694 | 13,887,898 | 11,180,835 |
| Noninterest-bearing | 3,811,391 | 3,745,002 | 3,436,709 | 3,124,277 | 3,143,081 | 3,778,380 | 3,117,203 |
| Total deposits | 17,686,775 | 17,645,552 | 15,958,657 | 14,511,925 | 14,354,775 | 17,666,278 | 14,298,038 |
| Federal funds purchased and securities sold | | | | | | | |
| under agreements to repurchase | 3,351 | 16,278 | 2,283 | 12,434 | 4,780 | 9,779 | 3,425 |
| FHLB short-term borrowings | 508,931 | 538,084 | 444,511 | 497,092 | 532,198 | 523,427 | 542,873 |
| Other | 0 | 0 | 13,891 | 21,519 | 26,226 | 0 | 62,600 |
| Total short-term borrowings | 512,282 | 554,362 | 460,685 | 531,045 | 563,204 | 533,206 | 608,898 |
| Long-term debt | 379,354 | 457,799 | 387,965 | 292,301 | 347,369 | 418,360 | 346,806 |
| Total borrowed funds | 891,636 | 1,012,161 | 848,650 | 823,346 | 910,573 | 951,566 | 955,704 |
| Accrued interest and other liabilities | 861,791 | 854,423 | 753,651 | 655,714 | 638,342 | 858,127 | 653,493 |
| Total Liabilities | 19,440,202 | 19,512,136 | 17,560,958 | 15,990,985 | 15,903,690 | 19,475,971 | 15,907,235 |
| SHAREHOLDERS' EQUITY | | | | | | | |
| Common stock | 1,790,690 | 1,795,255 | 1,644,923 | 1,639,986 | 1,637,782 | 1,792,960 | 1,639,390 |
| Retained earnings | 1,499,207 | 1,448,012 | 1,406,388 | 1,369,069 | 1,322,168 | 1,473,751 | 1,302,344 |
| Accumulated other comprehensive loss | (221,515) | (173,065) | (209,767) | (247,746) | (257,873) | (197,424) | (266,423) |
| Treasury stock, at cost | (117,145) | (122,617) | (145,963) | (186,106) | (186,330) | (119,866) | (188,385) |
| Total Shareholders' Equity | 2,951,237 | 2,947,585 | 2,695,581 | 2,575,203 | 2,515,747 | 2,949,421 | 2,486,926 |
| Total Liabilities and Shareholders' Equity | $22,391,439 | $22,459,721 | $20,256,539 | $18,566,188 | $18,419,437 | $22,425,392 | $18,394,161 |
NET INTEREST MARGIN RATE/VOLUME ANALYSIS
| Quarterly Averages | Year-to-Date Averages |
|---|
| June 30, 2026 | March 31, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 |
|---|
| Balance | Interest | Yield | Balance | Interest | Yield | Balance | Interest | Yield | Balance | Yield | Balance | Yield |
|---|
| Earning assets | | | | | | | | | | | | | |
| Investments: | | | | | | | | | | | | | |
| Investment securities | $5,079,730 | $56,376 | 4.45% | $4,769,261 | $52,017 | 4.42% | $3,478,921 | $38,476 | 4.44% | $4,925,353 | 4.44% | $3,445,443 | 4.39% |
| Interest-bearing deposits with other banks | 605,647 | 5,381 | 3.56% | 596,094 | 5,450 | 3.71% | 542,815 | 5,964 | 4.41% | 600,897 | 3.63% | 579,112 | 4.39% |
| Gross loans | 13,619,039 | 219,164 | 6.45% | 14,028,324 | 224,951 | 6.50% | 11,792,840 | 201,460 | 6.85% | 13,822,551 | 6.48% | 11,758,972 | 6.84% |
| Total earning assets | 19,304,416 | 280,921 | 5.84% | 19,393,679 | 282,418 | 5.91% | 15,814,576 | 245,900 | 6.24% | 19,348,801 | 5.87% | 15,783,527 | 6.21% |
| Nonearning assets | | | | | | | | | | | | | |
| Allowance for credit losses | (186,331) | | | (200,745) | | | (158,170) | | | (193,498) | | (158,188) | |
| Cash and due from banks | 182,261 | | | 227,115 | | | 174,375 | | | 204,564 | | 169,581 | |
| Accrued interest and other assets | 3,091,093 | | | 3,039,672 | | | 2,588,656 | | | 3,065,525 | | 2,599,241 | |
| Total assets | $22,391,439 | | | $22,459,721 | | | $18,419,437 | | | $22,425,392 | | $18,394,161 | |
| Interest-bearing liabilities | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | |
| Interest-bearing demand | $3,762,177 | $14,288 | 1.52% | $3,626,103 | $13,281 | 1.49% | $3,066,986 | $14,139 | 1.85% | $3,694,516 | 1.50% | $3,078,691 | 1.92% |
| Savings | 6,434,399 | 33,405 | 2.08% | 6,406,223 | 32,480 | 2.06% | 5,005,526 | 29,942 | 2.40% | 6,420,389 | 2.07% | 4,962,007 | 2.45% |
| Time | 3,678,808 | 31,557 | 3.44% | 3,868,224 | 33,974 | 3.56% | 3,139,182 | 31,403 | 4.01% | 3,772,993 | 3.50% | 3,140,137 | 4.14% |
| Total interest-bearing deposits | 13,875,384 | 79,250 | 2.29% | 13,900,550 | 79,735 | 2.33% | 11,211,694 | 75,484 | 2.70% | 13,887,898 | 2.31% | 11,180,835 | 2.78% |
| Borrowed funds | | | | | | | | | | | | | |
| Short-term borrowings | 512,282 | 4,997 | 3.91% | 554,362 | 5,168 | 3.78% | 563,204 | 6,393 | 4.55% | 533,206 | 3.84% | 608,898 | 4.62% |
| Long-term debt | 379,354 | 6,297 | 6.66% | 457,799 | 7,905 | 7.00% | 347,369 | 5,754 | 6.64% | 418,360 | 6.85% | 346,806 | 6.22% |
| Total borrowed funds | 891,636 | 11,294 | 5.08% | 1,012,161 | 13,073 | 5.24% | 910,573 | 12,147 | 5.35% | 951,566 | 5.16% | 955,704 | 5.20% |
| Total interest-bearing liabilities | 14,767,020 | 90,544 | 2.46% | 14,912,711 | 92,808 | 2.52% | 12,122,267 | 87,631 | 2.90% | 14,839,464 | 2.49% | 12,136,539 | 2.97% |
| Noninterest-bearing liabilities | | | | | | | | | | | | | |
| Noninterest-bearing demand deposits | 3,811,391 | | | 3,745,002 | | | 3,143,081 | | | 3,778,380 | | 3,117,203 | |
| Other liabilities | 861,791 | | | 854,423 | | | 638,342 | | | 858,127 | | 653,493 | |
| Shareholders' equity | 2,951,237 | | | 2,947,585 | | | 2,515,747 | | | 2,949,421 | | 2,486,926 | |
| Total liabilities& shareholders' equity | $22,391,439 | | | $22,459,721 | | | $18,419,437 | | | $22,425,392 | | $18,394,161 | |
| Net interest income | $190,377 | | | $189,610 | | | $158,269 | | | $379,987 | | $307,565 | |
| Net interest spread | | | 3.38% | | | 3.39% | | | 3.34% | | 3.38% | | 3.24% |
| Net interest margin | | | 3.96% | | | 3.97% | | | 4.01% | | 3.96% | | 3.93% |
| Tax equivalent adjustment | | | 0.02% | | | 0.02% | | | 0.04% | | 0.02% | | 0.03% |
| Net interest margin (fully tax equivalent) | | | 3.98% | | | 3.99% | | | 4.05% | | 3.98% | | 3.96% |
Loans held for sale and nonaccrual loans are included in gross loans.
NET INTEREST MARGIN RATE/VOLUME ANALYSIS
| Linked Qtr. Income Variance | Comparable Qtr. Income Variance | Year-to-Date Income Variance |
|---|
| Rate | Volume | Total | Rate | Volume | Total | Rate | Volume | Total |
|---|
| Earning assets | | | | | | | | | |
| Investment securities | $332 | $4,027 | $4,359 | $134 | $17,766 | $17,900 | $743 | $32,569 | $33,312 |
| Interest-bearing deposits with other banks | (212) | 143 | (69) | (1,141) | 558 | (583) | (2,177) | 393 | (1,784) |
| Gross loans | (1,681) | (4,106) | (5,787) | (11,684) | 29,388 | 17,704 | (20,810) | 66,302 | 45,492 |
| Total earning assets | (1,561) | 64 | (1,497) | (12,691) | 47,712 | 35,021 | (22,244) | 99,264 | 77,020 |
| Interest-bearing liabilities | | | | | | | | | |
| Total interest-bearing deposits | $(1,214) | $729 | $(485) | $(11,448) | $15,214 | $3,766 | $(26,130) | $30,990 | $4,860 |
| Borrowed funds | | | | | | | | | |
| Short-term borrowings | 180 | (351) | (171) | (899) | (497) | (1,396) | (2,330) | (1,443) | (3,773) |
| Long-term debt | (389) | (1,219) | (1,608) | 12 | 531 | 543 | 1,082 | 2,429 | 3,511 |
| Total borrowed funds | (209) | (1,570) | (1,779) | (887) | 34 | (853) | (1,248) | 986 | (262) |
| Total interest-bearing liabilities | (1,423) | (841) | (2,264) | (12,335) | 15,248 | 2,913 | (27,378) | 31,976 | 4,598 |
| Net interest income | $(138) | $905 | $767 | $(356) | $32,464 | $32,108 | $5,134 | $67,288 | $72,422 |
Not tax equivalent.
Loans held for sale and nonaccrual loans are included in gross loans.
CREDIT QUALITY
| Three Months Ended, | Six months ended |
|---|
| June 30, | Mar. 31, | Dec. 31, | Sep. 30, | June 30, | June 30, | June 30, |
|---|
| 2026 | 2026 | 2025 | 2025 | 2025 | 2026 | 2025 |
|---|
| ALLOWANCE FOR CREDIT LOSS ACTIVITY | | | | | | | |
| Balance at beginning of period | $183,716 | $186,487 | $161,916 | $158,522 | $155,482 | $186,487 | $156,791 |
| Initial allowance on purchased loans | 0 | 2,829 | 23,652 | 0 | 0 | 2,829 | 0 |
| Provision for credit losses | 12,933 | 6,030 | 9,688 | 8,612 | 9,084 | 18,963 | 18,225 |
| Gross charge-offs | | | | | | | |
| Commercial and industrial | 2,437 | 10,788 | 6,636 | 2,165 | 4,996 | 13,225 | 13,174 |
| Lease financing | 1,314 | 43 | 918 | 298 | 606 | 1,357 | 2,060 |
| Construction real estate | 0 | 0 | 0 | 245 | 0 | 0 | 0 |
| Commercial real estate | 2,484 | 29 | 433 | 3,105 | 0 | 2,513 | 0 |
| Residential real estate | 84 | 127 | 151 | 0 | 16 | 211 | 16 |
| Home equity | 262 | 119 | 95 | 92 | 100 | 381 | 186 |
| Installment | 1,034 | 1,058 | 1,197 | 1,194 | 1,120 | 2,092 | 2,441 |
| Credit card | 704 | 496 | 729 | 577 | 489 | 1,200 | 963 |
| Total gross charge-offs | 8,319 | 12,660 | 10,159 | 7,676 | 7,327 | 20,979 | 18,840 |
| Recoveries | | | | | | | |
| Commercial and industrial | 463 | 100 | 264 | 202 | 290 | 563 | 485 |
| Lease financing | 114 | 23 | 201 | 291 | 11 | 137 | 40 |
| Construction real estate | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Commercial real estate | 8 | 28 | 5 | 1,138 | 70 | 36 | 94 |
| Residential real estate | 18 | 30 | 13 | 58 | 42 | 48 | 66 |
| Home equity | 157 | 116 | 117 | 94 | 74 | 273 | 218 |
| Installment | 660 | 598 | 682 | 609 | 716 | 1,258 | 1,279 |
| Credit card | 162 | 135 | 108 | 66 | 80 | 297 | 164 |
| Total recoveries | 1,582 | 1,030 | 1,390 | 2,458 | 1,283 | 2,612 | 2,346 |
| Total net charge-offs | 6,737 | 11,630 | 8,769 | 5,218 | 6,044 | 18,367 | 16,494 |
| Ending allowance for credit losses | $189,912 | $183,716 | $186,487 | $161,916 | $158,522 | $189,912 | $158,522 |
| NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED) | | |
| Commercial and industrial | 0.17% | 0.91% | 0.59% | 0.20% | 0.49% | 0.54% | 0.67% |
| Lease financing | 0.74% | 0.01% | 0.46% | 0.00% | 0.41% | 0.39% | 0.70% |
| Construction real estate | 0.00% | 0.00% | 0.00% | 0.14% | 0.00% | 0.00% | 0.00% |
| Commercial real estate | 0.22% | 0.00% | 0.04% | 0.20% | (0.01)% | 0.11% | 0.00% |
| Residential real estate | 0.01% | 0.02% | 0.03% | (0.02)% | (0.01)% | 0.02% | (0.01)% |
| Home equity | 0.04% | 0.00% | (0.01)% | 0.00% | 0.01% | 0.02% | (0.01)% |
| Installment | 0.94% | 1.12% | 1.25% | 2.03% | 1.38% | 1.03% | 1.91% |
| Credit card | 3.03% | 2.13% | 3.56% | 2.97% | 2.41% | 2.59% | 2.41% |
| Total net charge-offs | 0.20% | 0.35% | 0.27% | 0.18% | 0.21% | 0.27% | 0.28% |
| COMPONENTS OF NONACCRUAL LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS | | |
| Nonaccrual loans | | | | | | | |
| Commercial and industrial | $20,305 | $22,576 | $27,461 | $23,832 | $24,489 | $20,305 | $24,489 |
| Lease financing | 7,558 | 5,857 | 5,660 | 5,885 | 6,243 | 7,558 | 6,243 |
| Construction real estate | 698 | 715 | 1,120 | 1,120 | 1,365 | 698 | 1,365 |
| Commercial real estate | 44,404 | 49,481 | 45,590 | 24,443 | 23,905 | 44,404 | 23,905 |
| Residential real estate | 18,260 | 17,439 | 18,302 | 16,452 | 16,995 | 18,260 | 16,995 |
| Home equity | 4,095 | 3,687 | 2,927 | 3,567 | 3,226 | 4,095 | 3,226 |
| Installment | 832 | 786 | 748 | 652 | 701 | 832 | 701 |
| Total nonaccrual loans | 96,152 | 100,541 | 101,808 | 75,951 | 76,924 | 96,152 | 76,924 |
| Other real estate owned (OREO) | 174 | 238 | 184 | 111 | 204 | 174 | 204 |
| Total nonperforming assets | 96,326 | 100,779 | 101,992 | 76,062 | 77,128 | 96,326 | 77,128 |
| Accruing loans past due 90 days or more | 650 | 1,366 | 411 | 592 | 714 | 650 | 714 |
| Total underperforming assets | $96,976 | $102,145 | $102,403 | $76,654 | $77,842 | $96,976 | $77,842 |
| Total classified assets | $226,826 | $232,368 | $235,451 | $218,794 | $214,346 | $226,826 | $214,346 |
| CREDIT QUALITY RATIOS | | | | | | | |
| Allowance for credit losses to | | | | | | | |
| Nonaccrual loans | 197.51% | 182.73% | 183.18% | 213.18% | 206.08% | 197.51% | 206.08% |
| Total ending loans | 1.38% | 1.36% | 1.39% | 1.38% | 1.34% | 1.38% | 1.34% |
| Nonaccrual loans to total loans | 0.70% | 0.75% | 0.76% | 0.65% | 0.65% | 0.70% | 0.65% |
| Nonperforming assets to | | | | | | | |
| Ending loans, plus OREO | 0.70% | 0.75% | 0.76% | 0.65% | 0.65% | 0.70% | 0.65% |
| Total assets | 0.43% | 0.44% | 0.48% | 0.41% | 0.41% | 0.43% | 0.41% |
| Classified assets to total assets | 1.01% | 1.02% | 1.11% | 1.18% | 1.15% | 1.01% | 1.15% |
CAPITAL ADEQUACY
| Three Months Ended, | Six months ended, |
|---|
| June 30, | Mar. 31, | Dec. 31, | Sep. 30, | June 30, | June 30, | June 30, |
|---|
| 2026 | 2026 | 2025 | 2025 | 2025 | 2026 | 2025 |
|---|
| PER COMMON SHARE | | | | | | | |
| Market Price | | | | | | | |
| High | $33.90 | $31.16 | $26.98 | $26.79 | $25.19 | $33.90 | $29.04 |
| Low | $28.06 | $25.09 | $23.26 | $23.55 | $22.05 | $25.09 | $22.05 |
| Close | $33.83 | $27.88 | $25.02 | $25.25 | $24.26 | $33.83 | $24.26 |
| Average shares outstanding - basic | 103,938,322 | 103,705,269 | 96,724,148 | 94,889,341 | 94,860,428 | 103,822,439 | 94,753,700 |
| Average shares outstanding - diluted | 104,936,741 | 104,615,405 | 97,593,800 | 95,753,798 | 95,741,696 | 104,776,961 | 95,633,579 |
| Ending shares outstanding | 104,956,458 | 104,932,829 | 98,521,726 | 95,757,250 | 95,760,617 | 104,956,458 | 95,760,617 |
| Total shareholders' equity | $2,987,488 | $2,940,625 | $2,769,216 | $2,631,855 | $2,558,155 | $2,987,488 | $2,558,155 |
| REGULATORY CAPITAL | Preliminary | | | | | Preliminary | |
| Common equity tier 1 capital | $2,029,668 | $1,970,561 | $1,798,266 | $1,828,843 | $1,776,038 | $2,029,668 | $1,776,038 |
| Common equity tier 1 capital ratio | 12.33% | 12.22% | 11.32% | 12.91% | 12.57% | 12.33% | 12.57% |
| Tier 1 capital | $2,075,286 | $2,016,070 | $1,843,672 | $1,874,191 | $1,821,316 | $2,075,286 | $1,821,316 |
| Tier 1 ratio | 12.61% | 12.50% | 11.60% | 13.23% | 12.89% | 12.61% | 12.89% |
| Total capital | $2,591,169 | $2,531,334 | $2,457,377 | $2,170,546 | $2,116,180 | $2,591,169 | $2,116,180 |
| Total capital ratio | 15.75% | 15.70% | 15.46% | 15.32% | 14.98% | 15.75% | 14.98% |
| Total capital in excess of minimum requirement | $863,256 | $837,959 | $788,889 | $683,018 | $632,563 | $863,256 | $632,563 |
| Total risk-weighted assets | $16,456,311 | $16,127,377 | $15,890,363 | $14,166,935 | $14,129,683 | $16,456,311 | $14,129,683 |
| Leverage ratio | 9.66% | 9.39% | 9.53% | 10.50% | 10.28% | 9.66% | 10.28% |
| OTHER CAPITAL RATIOS | | | | | | | |
| Ending shareholders' equity to ending assets | 13.31% | 12.91% | 13.11% | 14.18% | 13.73% | 13.31% | 13.73% |
| Ending tangible shareholders' equity to ending tangible assets | 8.24% | 7.87% | 7.79% | 8.87% | 8.40% | 8.24% | 8.40% |
| Average shareholders' equity to average assets | 13.18% | 13.12% | 13.31% | 13.87% | 13.66% | 13.15% | 13.52% |
| Average tangible shareholders' equity to average tangible assets | 8.08% | 8.01% | 7.97% | 8.54% | 8.26% | 8.04% | 8.10% |
| REPURCHASE PROGRAM | | | | | | | |
| Shares repurchased | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Average share repurchase price | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total cost of shares repurchased | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
Non-GAAP measure. For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled “Use of Non-GAAP Financial Measures” in this release and “Appendix: Non-GAAP to GAAP Reconciliation” in the accompanying slide presentation.
Represents share repurchases as part of publicly announced plans.
N/A = Not applicable
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Investors/Analysts · Jamie Anderson · Chief Financial Officer · (513) 887-5400 · InvestorRelations@bankatfirst.com
Media · Tim Condron · Director of Corporate Communications · (513) 979-5796 · media@bankatfirst.com