First Business Bank Reports First Quarter 2024 Net Income of $8.6 Million

About this update from First Business Financial Services, Inc.

[{"type":"text","content":" \nContinued solid loan and core deposit growth supports ongoing tangible book value expansion\n\n \n MADISON, Wis. --(BUSINESS WIRE)--\n First Business Financial Services, Inc. (the “Company,” the “Bank,” or “First Business Bank”) (Nasdaq:FBIZ) reported quarterly net income available to common shareholders of $8.6 million , or earnings per share of $1.04 on a diluted basis. This compares to net income available to common shareholders of $9.6 million , or $1.15 per share, in the fourth quarter of 2023 and $8.8 million , or $1.05 per share, in the first quarter of 2023.\n\n \n“Solid first quarter performance is a testament to our team’s consistent execution in a persistently challenging interest rate environment,” said Corey Chambas , Chief Executive Officer. “Our operating model produced 13% tangible book value growth this quarter. We continued to deliver strong profitability and quality growth through the addition and retention of valuable client relationships — successes that are deeply rooted in our culture of excellence and consistency. The cornerstone of our new five-year plan is the confluence of the future of talent and technology. Executing on this will drive continued double-digit growth in loans, deposits, fee income, and top line revenue, which ultimately delivers double-digit annual tangible book value growth for our shareholders.”\n\n \n“While deposit rates remain competitive, we continue to run a match-funded balance sheet that we believe is effective in delivering a stable net interest margin. With interest rates outside of our control, we focus on executing our long-held relationship-based approach to deposit generation, adding clients and balances for the long term.” Chambas added, “In addition, we continue to focus on growing our higher-yielding, niche commercial and industrial loan portfolio, which we expect will support a higher baseline net interest margin.”\n\n \n Quarterly Highlights \n\n \n \n Solid Loan Growth. Loans increased $60.6 million , or 8.5% annualized, from the fourth quarter of 2023, and $371.5 million , or 14.6%, from the first quarter of 2023, reflecting ongoing expansion across the Company’s products and geographies.\n\n \n \n Core Deposit Growth Continues. Average core deposits grew to a record $2.346 billion , up $98.8 million , or 17.6% annualized, from the fourth quarter of 2023 and $345.9 million , or 17.3%, from the first quarter of 2023. The linked-quarter decline in period-end balances reflects the timing of a significant deposit inflow that typically recurs on at the end of the month but was delayed until April 1 . New relationships also contributed to increased gross Treasury Management service charges, which grew 9.2% to $1.5 million , compared to $1.4 million in the first quarter of 2023.\n\n \n \n Stable Net Interest Income. Net interest income remained consistent with the linked quarter and grew 10.5% from the prior year quarter. The Company’s continued success in driving loan and deposit growth was partially offset by the ongoing impact of industry-wide net interest margin compression.\n\n \n \n Tangible Book Value Growth. The Company’s strong earnings generation and sound balance sheet management continued to grow tangible book value per share growth, producing a 12.9% annualized increase compared to the linked quarter and a 13.0% increase compared to the prior year quarter. \n\n \n \n \n \n \n \n \n \n \n \n Quarterly Financial Results \n\n \n\n \n\n \n \n \n \n \n \n (Unaudited) \n\n \n\n \n\n \n \n\n \n\n \n\n \n As of and for the Three Months Ended \n\n \n\n \n\n \n \n \n (Dollars in thousands, except per share amounts) \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31 , \n\n \n\n \n 2 024 \n\n \n\n \n\n \n \n\n \n\n \n\n \n December 31 , \n\n \n\n \n 2 023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31 , \n\n \n\n \n 2 023 \n\n \n\n \n\n \n \n \nNet interest income\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n29,511\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n29,540\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n26,705\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nAdjusted non-interest income (1)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n6,765\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n7,094\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n8,410\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nOperating revenue (1)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n36,276\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n36,634\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n35,115\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nOperating expense (1)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n23,130\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n21,374\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n21,779\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nPre-tax, pre-provision adjusted earnings (1)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n13,146\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n15,260\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n13,336\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nLess:\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nProvision for credit losses\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,326\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,573\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,561\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nNet loss on repossessed assets\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n86\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n6\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nSBA recourse provision\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n126\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n210\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(18\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n \nAdd:\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nNet loss on sale of securities\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(8\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nIncome before income tax expense\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n10,600\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n12,473\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n11,787\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nIncome tax expense\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,752\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,703\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,808\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nNet income\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n8,848\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n9,770\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n8,979\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nPreferred stock dividends\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n219\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n219\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n219\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nNet income available to common shareholders\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n8,629\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n9,551\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n8,760\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nEarnings per share, diluted\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n1.04\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n1.15\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n1.05\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nBook value per share\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n34.41\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n33.39\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n30.65\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTangible book value per share (1)\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n32.97\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n31.94\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n29.19\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nNet interest margin (2)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3.58\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3.69\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3.86\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nAdjusted net interest margin (1)(2)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3.43\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3.50\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3.74\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nFee income ratio (non-interest income / total revenue)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n18.63\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n19.36\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n23.95\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nEfficiency ratio (1)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n63.76\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n58.34\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n62.02\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nReturn on average assets (2)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.98\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.11\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.17\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nPre-tax, pre-provision adjusted return on average assets (1)(2)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.49\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.77\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.79\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nReturn on average common equity (2)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n12.24\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n13.99\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n13.96\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nPeriod-end loans and leases receivable\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n2,910,864\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n2,850,261\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n2,539,363\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nAverage loans and leases receivable\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n2,887,454\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n2,810,793\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n2,481,200\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nPeriod-end core deposits\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n2,297,843\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n2,339,071\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n2,054,752\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nAverage core deposits\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n2,346,453\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n2,247,639\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n2,000,602\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nAllowance for credit losses, including unfunded commitment reserves\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n34,629\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n32,997\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n27,550\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nNon-performing assets\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n20,146\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n20,844\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,501\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nAllowance for credit losses as a percent of total gross loans and leases\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.19\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.16\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.08\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nNon-performing assets as a percent of total assets\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.57\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.59\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.11\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \n \n(1)\n\n \n\n \n\n \nThis is a non-GAAP financial measure. Management believes these measures are meaningful because they reflect adjustments commonly made by management, investors, regulators, and analysts to evaluate financial performance, provide greater understanding of ongoing operations, and enhance comparability of results with prior periods. See the section titled Non-GAAP Reconciliations at the end of this release for a reconciliation of GAAP financial measures to non-GAAP financial measures.\n\n \n\n \n\n \n \n \n(2)\n\n \n\n \n\n \nCalculation is annualized.\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n First Quarter 2024 Compared to Fourth Quarter 2023 \n\n \nNet interest income decreased $29,000 , or 0.1%, to $29.5 million .\n\n \n \nThe decrease in net interest income was driven by a decrease in net interest margin and fees in lieu of interest, partially offset by an increase in average loans and leases receivable. Average loans and leases receivable increased $76.7 million , or 10.9% annualized, to $2.887 billion . Fees in lieu of interest, which vary from quarter to quarter based on client-driven activity, totaled $793,000 , compared to $1.1 million in the prior quarter. Excluding fees in lieu of interest, net interest income increased $254,000 , or 0.9%.\n\n \n \nThe yield on average interest-earning assets decreased 8 basis points to 6.77% from 6.85%. Excluding fees in lieu of interest, the yield earned on average interest-earning assets decreased 3 basis points to 6.68% from 6.71%. The cumulative adjusted interest-earning asset beta2 since December 31, 2021 was 59.8%.\n\n \n \nThe rate paid for average interest-bearing, core deposits increased 5 basis points to 4.04% from 3.99% due to ongoing competition for deposits. Conversely, the rate paid for average wholesale deposits decreased 12 basis points to 4.03% from 4.15%. The cumulative bank funding beta since December 31, 2021 was 56.8%. Total bank funding is defined as total deposits plus Federal Home Loan Bank (“FHLB”) advances.\n\n \n \nNet interest margin was 3.58%, down 11 basis points compared to 3.69% in the linked quarter. Adjusted net interest margin1 was 3.43%, down 7 basis points compared to 3.50% in the linked quarter. The decrease in adjusted net interest margin was driven by an increase in the rate paid on interest-bearing core deposits, partially offset by a decrease in rate paid on wholesale funding.\n\n \n \nManagement believes net interest margin is nearing a floor. In the current interest rate environment, we expect net interest margin will approach our previous long-term target of 3.50%. Over time, we expect our net interest margin to increase towards our new long-term target range of 3.60% to 3.65%.\n\n \n \nThe Bank reported a provision expense of $2.3 million , compared to $2.6 million in the fourth quarter of 2023. Provision expense was lower due to an improved economic forecast and fewer new specific reserves in the Equipment Finance loan portfolio. The $2.3 million expense consists of a general reserve increase of $740,000 due to qualitative factor changes, net charge-offs of $694,000 , $629,000 in additional specific reserves, and $354,000 due to loan growth, partially offset by a $199,000 reduction in general reserves due to an improved economic outlook in our model forecast compared to the prior period. The increase in qualitative factors was primarily driven by above target growth in several loan portfolios. Similar to the second half of 2023, the additional specific reserves and charge-offs were primarily related to defaults by transportation and logistics borrowers in our Equipment Finance loan portfolio, which management believes is consistent with the cyclical nature of this industry. Given current conditions in the industry, the Company expects continued stress within this group of borrowers in 2024.\n\n \nNon-interest income decreased $337,000 , or 4.8%, to $6.8 million .\n\n \n \nPrivate Wealth and Company Retirement Plan (“Private Wealth”) fee income increased $178,000 , or 6.1% to $3.1 million . Private Wealth assets under management and administration measured a record $3.320 billion on March 31, 2024 , up $198.7 million , or 25.5% annualized from the prior quarter.\n\n \n \nService charges on deposits increased $92,000 , or 10.8%, to $940,000 , driven by new core deposit relationships.\n\n \n \nGains on sale of SBA loans decreased $89,000 , or 31.3%, to $195,000 . Management expects the SBA loan sales pipeline to build throughout the year as production increases and previously closed commitments fully fund and become eligible for sale.\n\n \n \nCommercial loan swap fee income of $198,000 decreased by $240,000 , or 54.8%. Swap fee income varies from period to period based on loan activity and the interest rate environment.\n\n \n \nOther fee income decreased $248,000 to $1.5 million , compared to $1.7 million in the prior quarter. The decrease was primarily due to lower returns on the Company’s investments in mezzanine funds in the first quarter. Income from mezzanine funds was $653,000 in the first quarter, compared to $860,000 in the linked quarter. Income from mezzanine funds varies from period to period based on changes in the realized and unrealized fair value of underlying investments.\n\n \n \n \n _____________________________________ \n \n \n \n1\n\n \n\n \n\n \nAdjusted net interest margin is a non-GAAP measure representing net interest income excluding fees in lieu of interest and other recurring, but volatile, components of net interest margin divided by average interest-earning assets less other recurring, but volatile, components of average interest-earning assets.\n\n \n\n \n\n \n \n \n2\n\n \n\n \n\n \nThe change in yield of the respective interest-earning asset or the rate paid on interest-bearing liability compared to the change in short-term market rates is commonly referred to as a beta.\n\n \n\n \n\n \n \nNon-interest expense increased $1.8 million , or 8.1%, to $23.3 million , while operating expense increased $1.8 million , or 8.2%, to $23.1 million .\n\n \n \nCompensation expense was $16.2 million , reflecting an increase of $1.7 million , or 11.8%, from the linked quarter primarily due to higher seasonal payroll taxes, 401k match contributions paid in the quarter on the annual cash bonus payout, annual merit increases reflecting a competitive job market, and an expanded workforce. These increases were partially offset by a decrease in incentive compensation. Average full-time equivalents (“FTEs”) for the first quarter of 2024 were 346, up from 343 in the linked quarter. Management believes compensation expense will continue at this level in 2024 as opportunistic investment in talent will offset the reduction in payroll taxes throughout the year.\n\n \n \nProfessional fees were $1.6 million , increasing $258,000 , or 19.6%, from the linked quarter primarily due to an increase in recruiting expenses and legal fees related to the sale of state tax credits.\n\n \n \nComputer software expense increased $101,000 , or 7.7%, from the linked quarter primarily due to continued investment in technology to support the Company’s growth initiatives.\n\n \n \nMarketing expense increased $94,000 , or 13.0%, from the linked quarter primarily due to an increase in business development efforts and advertising projects commensurate with the Company’s growth initiatives.\n\n \n \nOther non-interest expense decreased $554,000 , or 41.0%, to $798,000 from the linked quarter primarily due to decreases in liquidation expense, loan-related expenses, donations, travel expenses, and SBA recourse provision.\n\n \n \nIncome tax expense decreased $951,000 , or 35.2%, to $1.8 million . The effective tax rate was 16.5% for the three months ended March 31, 2024 , compared to 21.7% for the linked quarter. The decrease reflects the impact of lower state taxes due to legislative change, recognition of a valuation allowance on state deferred tax in the prior quarter, and new federal tax credit projects. Based on expected earnings, reduction in state tax, and future tax credit investments, the Company expects to report an effective tax rate between 17% and 19% for 2024.\n\n \nTotal period-end loans and leases receivable increased $60.6 million , or 8.5% annualized, to $2.911 billion . Management expects to manage loan growth towards our long-term target of 10%. The average rate earned on average loans and leases receivable was 7.14%, down 7 basis points from 7.21% in the prior quarter. Excluding fees in lieu of interest, the average rate earned on average loans and leases receivable was 7.03%, down 3 basis points from 7.06% in the prior quarter. Additionally, $197.2 million of new and renewed loans were originated in the quarter at a weighted average yield of 7.95%.\n\n \n \n Commercial Real Estate (“CRE”) loans increased by $39.9 million , or 9.4% annualized, to $1.740 billion . The increase was primarily due to an increase in non-owner occupied CRE and owner-occupied CRE, in the Wisconsin market.\n\n \n \nCommercial & Industrial (“C&I”) loans increased $14.9 million , or 5.6% annualized, to $1.121 billion . The increase was due to growth across all categories.\n\n \n \nTotal period-end core deposits decreased $41.2 million to $2.298 billion , compared to $2.339 billion . The average rate paid was 3.28%, up 8 basis points from 3.20% in the prior quarter.\n\n \n \nThe decline in period-end balances is due to the delayed receipt of a significant core deposit which typically occurs near the end of the month. Including this recurring deposit inflow received by the Bank on April 1 , period-end core deposits increased $24.2 million , or 4.1% annualized. New non-maturity deposit balances of $102.6 million were added at a weighted average rate of 4.31%. The increase in new accounts was partially offset by a $81.0 million reduction in existing accounts at a weighted average rate of 2.99%, compared to 2.86% in the linked quarter. Certificate of deposit maturities of $190.3 million at a weighted average rate of 4.38% were replaced by new and renewed certificates of deposit of $170.2 million at a weighted average rate of 4.38%.\n\n \n \nPeriod-end wholesale funding, including FHLB advances, brokered deposits, and deposits gathered through internet deposit listing services, increased $50.6 million , or 27.2% annualized, to $789.8 million . The increase reflects the temporary funding need due to the delayed recurring core deposit inflow the Bank did not receive until April 1 . To cover this timing difference, the Bank utilized short-term FHLB advances. Consistent with the Bank’s long-held philosophy to manage interest rate risk, management will continue to utilize the most efficient and cost-effective source of wholesale funds to match-fund fixed-rate loans as necessary.\n\n \n \nWholesale deposits decreased $145,000 to $457.6 million , compared to $457.7 million . The average rate paid on wholesale deposits decreased 12 basis points to 4.03% and the weighted average original maturity was 4.4 years for both periods.\n\n \n \nFHLB advances increased $50.8 million to $332.3 million . The average rate paid on FHLB advances decreased 6 basis points to 2.39% and the weighted average original maturity decreased to 4.5 years from 5.2 years.\n\n \n \nNon-performing assets decreased $698,000 to $20.1 million , or 0.57% of total assets, down from 0.59% in the prior quarter. While we continue to expect full repayment of the one asset-based lending (ABL) loan that defaulted during the second quarter of 2023, the liquidation process has transitioned into Chapter 7 bankruptcy, likely delaying final resolution until late 2024 or potentially 2025. Excluding this ABL loan, non-performing assets totaled $12.7 million , or 0.36% of total assets in the current quarter and $12.0 million , or 0.34% of total assets in the linked quarter.\n\n \nThe allowance for credit losses, including the unfunded credit commitments reserve, increased $1.6 million , or 4.9%, as increases in specific reserves, the general reserve from loan growth, and qualitative factors were partially offset by charge-offs and an improved economic outlook in our model forecast. The allowance for credit losses, including unfunded credit commitment reserves, as a percent of total gross loans and leases was 1.19% compared to 1.16% in the prior quarter.\n\n \n First Quarter 2024 Compared to First Quarter 2023 \n\n \nNet interest income increased $2.8 million , or 10.5%, to $29.5 million .\n\n \n \nThe increase in net interest income primarily reflects an increase in average gross loans and leases and an increase in fees in lieu of interest, partially offset by net interest margin compression. Fees in lieu of interest increased to $793,000 from $651,000 . Excluding fees in lieu of interest, net interest income increased $2.7 million , or 10.2%.\n\n \n \nThe yield on average interest-earning assets measured 6.77% compared to 6.09%. Excluding fees in lieu of interest, the yield on average interest-earning assets measured 6.68%, compared to 5.99%. This increase in yield was primarily due to the increase in short-term market rates and the reinvestment of cash flows from the securities and fixed-rate loan portfolios in a rising rate environment. The daily average effective federal funds rate increased 82 basis points compared to the prior year quarter, which equates to an average adjusted interest-earning asset beta of 83.6% for the three months ended March 31, 2024 , compared to the prior year period.\n\n \n \nThe rate paid for average interest-bearing core deposits increased 126 basis points to 4.04% from 2.78%. The rate paid for average total bank funding increased 101 basis points to 3.31% from 2.30%. The total bank funding beta was 122.0% for the three months ended March 31, 2024 , compared to the prior year period.\n\n \n \nNet interest margin decreased 28 basis points to 3.58% from 3.86%. Adjusted net interest margin decreased 31 basis points to 3.43% from 3.74%.\n\n \n \nThe Company reported a credit loss provision expense of $2.3 million , compared an expense of $1.6 million in the first quarter of 2023. The increase compared to the prior year quarter is mainly due to an increase in specific reserves related to the Equipment Finance lending portfolio.\n\n \nNon-interest income of $6.8 million decreased by $1.7 million , or 19.7%, from $8.4 million in the prior year period.\n\n \n \nPrivate Wealth fee income increased $457,000 , or 17.2%, to $3.1 million . Private Wealth assets under management and administration measured $3.320 billion at March 31, 2024 , up $516.1 million , or 18.4%.\n\n \n \nCommercial loan swap fee income decreased by $359,000 , or 64.5%, to $198,000 . Swap fee income varies from period to period based on loan activity and the interest rate environment.\n\n \n \nGain on sale of SBA loans decreased $281,000 , or 59.0%, to $195,000 . Management expects the SBA loan sales pipeline to build throughout the year as production increases and previously closed commitments fully fund and become eligible for sale.\n\n \n \nService charges on deposits increased $258,000 , or 37.8%, to $940,000 , driven by new core deposit relationships.\n\n \n \nOther fee income decreased $1.8 million , or 54.5%, to $1.5 million . The decrease was primarily due to lower returns on the Company’s investments in mezzanine funds in the first quarter. Income from mezzanine funds was $653,000 in the first quarter, compared to $2.4 million in the prior year quarter. Income from mezzanine funds varies from period to period based on changes in the realized and unrealized fair value of underlying investments.\n\n \n \nNon-interest expense increased $1.6 million , or 7.2%, to $23.3 million . Operating expense increased $1.4 million , or 6.2%, to $23.1 million .\n\n \n \nCompensation expense increased $249,000 , or 1.6%, to $16.2 million . The increase in compensation expense was primarily due to an increase in average FTEs and annual merit increases and promotions. These increases were partially offset by a decrease in incentive compensation due to slower production and a decrease in 401k expense. Average FTEs increased 2% to 346 in the first quarter of 2024, compared to 340 in the first quarter of 2023, as a result of expanded hiring efforts that have successfully driven growth while maintaining positive operating leverage on an annual basis.\n\n \n \nComputer software expense increased $235,000 , or 19.9%, to $1.4 million , primarily due to continued investment in technology to support the Company’s growth initiatives.\n\n \n \nProfessional fees expense increased $228,000 , or 17.0%, to $1.6 million , primarily due to an increase in recruiting expense and a general increase in other professional consulting services for various projects.\n\n \n \n FDIC insurance increased $216,000 , or 54.8%, to $610,000 , primarily due to an increase in the assessable base.\n\n \n \nMarketing expense increased $190,000 , or 30.3%, to $818,000 , primarily due to an increase in business development efforts and advertising projects commensurate with the Company’s growth initiatives.\n\n \n \nData processing expense increased $143,000 , or 16.3%, to $1.0 million , primarily due to an increase in core processing costs commensurate with loan and deposit account growth, as well as various project implementations.\n\n \n \nOther expenses increased $288,000 , or 56.5%, to $798,000 , primarily due to increases in SBA recourse provision, travel expenses, and other loan-related costs, partially offset by a decrease in liquidation expense.\n\n \n \nTotal period-end loans and leases receivable increased $371.5 million , or 14.6%, to $2.911 billion .\n\n \n \nCRE loans increased $210.6 million , or 13.8%, to $1.740 billion , primarily due to increases in non-owner occupied CRE and owner occupied CRE loans in the Wisconsin market.\n\n \n \nC&I loans increased $157.5 million , or 16.3%, to $1.121 billion , due to growth across the majority of the Bank’s products and geographies.\n\n \n \nTotal period-end core deposits grew $243.1 million , or 11.8%, to $2.298 billion , and the average rate paid increased 119 basis points to 3.28%. The increase in average rate paid on core deposits was primarily due to a change in product mix. Total average core deposits grew $345.9 million , or 17.3%, to $2.346 billion .\n\n \nPeriod-end wholesale funding increased $60.2 million to $789.8 million .\n\n \n \nWholesale deposits increased $35.5 million to $457.6 million , as the Bank utilized more wholesale deposits in lieu of FHLB advances to build excess liquidity and to match-fund fixed rate assets. The average rate paid on wholesale deposits increased 18 basis points to 4.03% and the weighted average effective maturity increased to 4.4 years from 1.8 years. Consistent with our balance sheet strategy to use the most efficient and cost-effective source of wholesale funding, the Company has entered into several derivative contracts hedging a portion of the wholesale deposits to reduce the fixed rate funding costs.\n\n \n \nFHLB advances increased $24.8 million to $332.3 million . The average rate paid on FHLB advances increased 8 basis points to 2.39% and the weighted average original maturity decreased to 4.5 years from 4.7 years.\n\n \n \nNon-performing assets increased to $20.1 million , or 0.57% of total assets, compared to $3.5 million , or 0.11% of total assets, driven by the ABL and Equipment Finance loan portfolios within the C&I portfolio. Excluding one ABL loan for which we expect full repayment, non-performing assets totaled $12.7 million , or 0.36% of total assets.\n\n \nThe allowance for credit losses, including unfunded commitment reserves, increased $7.1 million to $34.6 million , compared to $26.1 million primarily due to an increase in specific reserves and loan growth, partially offset by an improvement in economic forecast. The allowance for credit losses as a percent of total gross loans and leases was 1.19%, compared 1.08% in the prior year.\n\n \n Investor Presentation \n\n \nThe Company has prepared investor presentation materials that management intends to use from time to time in discussions about the Company’s operations and performance. The presentation will be available for viewing in the Investor Relations section of the Company’s website at firstbusiness.bank and will also be furnished to the U.S. Securities and Exchange Commission on April 26, 2024 .\n\n \nAbout First Business Bank \n\n \n First Business Bank ® specializes in Business Banking, including Commercial Banking and Specialty Finance, Private Wealth, and Bank Consulting services, and through its refined focus delivers unmatched expertise, accessibility, and responsiveness. Specialty Finance solutions are delivered through First Business Bank’s wholly owned subsidiary First Business Specialty Finance, LLC ®. First Business Bank is a wholly owned subsidiary of First Business Financial Services, Inc ®. (Nasdaq: FBIZ). For additional information, visit firstbusiness.bank .\n\n \nThis release may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, which reflect First Business Bank’s current views with respect to future events and financial performance. Forward-looking statements are not based on historical information, but rather are related to future operations, strategies, financial results, or other developments. Forward-looking statements are based on management’s expectations as well as certain assumptions and estimates made by, and information available to, management at the time the statements are made. Those statements are based on general assumptions and are subject to various risks, uncertainties, and other factors that may cause actual results to differ materially from the views, beliefs, and projections expressed in such statements. Such statements are subject to risks and uncertainties, including among other things:\n\n \n \nAdverse changes in the economy or business conditions, either nationally or in our markets including, without limitation, inflation, supply chain issues, economic downturn, labor shortages, wage pressures, and the adverse effects of public health events on the global, national, and local economy.\n\n \n \nCompetitive pressures among depository and other financial institutions nationally and in the Company’s markets.\n\n \n \nIncreases in defaults by borrowers and other delinquencies.\n\n \n \nManagement’s ability to manage growth effectively, including the successful expansion of our client service, administrative infrastructure, and internal management systems.\n\n \n \nFluctuations in interest rates and market prices.\n\n \n \nChanges in legislative or regulatory requirements applicable to the Company and its subsidiaries.\n\n \n \nChanges in tax requirements, including tax rate changes, new tax laws, and revised tax law interpretations.\n\n \n \nFraud, including client and system failure or breaches of our network security, including the Company’s internet banking activities.\n\n \n \nFailure to comply with the applicable SBA regulations in order to maintain the eligibility of the guaranteed portion of SBA loans.\n\n \n \nOngoing volatility in the banking sector may result in new legislation, regulations or policy changes that could subject the Company and the Bank to increased government regulation and supervision.\n\n \n \nThe proportion of the Company’s deposit account balances that exceed FDIC insurance limits may expose the Bank to enhanced liquidity risk.\n\n \n \nThe Company may be subject to increases in FDIC insurance assessments as a result of bank failures that occurred in 2023.\n\n \n \nFor further information about the factors that could affect the Company’s future results, please see the Company’s annual report on Form 10-K for the year ended December 31, 2023 and other filings with the Securities and Exchange Commission .\n\n \n \n \n \n \n \n \n \n \n \n \n \n SELECTED FINANCIAL CONDITION DATA \n\n \n\n \n\n \n \n \n \n \n \n (Unaudited) \n\n \n\n \n\n \n \n\n \n\n \n\n \n As of \n\n \n\n \n\n \n \n \n (in thousands) \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31 , \n\n \n\n \n 2 024 \n\n \n\n \n\n \n \n\n \n\n \n\n \n December 31 , \n\n \n\n \n 2 023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n September 30 , \n\n \n\n \n 2 023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n June 30 , \n\n \n\n \n 2 023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31 , \n\n \n\n \n 2 023 \n\n \n\n \n\n \n \n \n Assets \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nCash and cash equivalents\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n72,040\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n139,510\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n132,915\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n112,809\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n185,973\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nSecurities available-for-sale, at fair value\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n314,114\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n297,006\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n272,163\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n253,626\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n236,989\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nSecurities held-to-maturity, at amortized cost\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n8,131\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n8,503\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n8,689\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n9,830\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n11,461\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nLoans held for sale\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4,855\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4,589\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4,168\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,191\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,697\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nLoans and leases receivable\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,910,864\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,850,261\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,764,014\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,674,583\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,539,363\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nAllowance for credit losses\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(32,799\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(31,275\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(29,331\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(28,115\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(26,140\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n \nLoans and leases receivable, net\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,878,065\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,818,986\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,734,683\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,646,468\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,513,223\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nPremises and equipment, net\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n6,268\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n6,190\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n6,157\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n5,094\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4,933\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nRepossessed assets\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n317\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n247\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n61\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n65\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n89\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nRight-of-use assets\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n6,297\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n6,559\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n6,800\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n7,049\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n7,355\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nBank-owned life insurance\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n55,948\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n55,536\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n55,123\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n54,747\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n54,383\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n Federal Home Loan Bank stock, at cost\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n13,326\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n12,042\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n13,528\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n14,482\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n13,088\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n Goodwill and other intangible assets\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n11,950\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n12,023\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n12,110\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n12,073\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n12,160\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nDerivatives\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n69,703\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n55,597\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n93,702\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n70,440\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n54,612\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nAccrued interest receivable and other assets\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n90,344\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n91,058\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n78,751\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n76,864\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n67,448\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTotal assets\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,531,358\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,507,846\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,418,850\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,265,738\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,164,411\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n Liabilities and Stockholders’ Equity \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nCore deposits\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n2,297,843\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n2,339,071\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n2,189,264\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n2,073,744\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n2,054,752\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nWholesale deposits\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n457,563\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n457,708\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n467,743\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n455,108\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n422,088\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTotal deposits\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,755,406\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,796,779\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,657,007\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,528,852\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,476,840\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n Federal Home Loan Bank advances and other borrowings\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n381,718\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n330,916\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n363,891\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n370,113\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n341,859\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nLease liabilities\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n8,664\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n8,954\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n9,236\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n9,499\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n9,822\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nDerivatives\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n61,133\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n51,949\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n78,696\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n61,147\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n49,012\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nAccrued interest payable and other liabilities\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n26,649\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n29,660\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n29,262\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n23,495\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n20,297\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTotal liabilities\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,233,570\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,218,258\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,138,092\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,993,106\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,897,830\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTotal stockholders’ equity\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n297,788\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n289,588\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n280,758\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n272,632\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n266,581\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTotal liabilities and stockholders’ equity\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,531,358\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,507,846\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,418,850\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,265,738\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,164,411\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n STATEMENTS OF INCOME \n\n \n\n \n\n \n \n \n \n \n \n (Unaudited) \n\n \n\n \n\n \n \n\n \n\n \n\n \n As of and for the Three Months Ended \n\n \n\n \n\n \n \n \n (Dollars in thousands, except per share amounts) \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31 , \n\n \n\n \n 2 024 \n\n \n\n \n\n \n \n\n \n\n \n\n \n December 31 , \n\n \n\n \n 2 023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n September 30 , \n\n \n\n \n 2 023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n June 30 , \n\n \n\n \n 2 023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31 , \n\n \n\n \n 2 023 \n\n \n\n \n\n \n \n \nTotal interest income\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n55,783\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n54,762\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n50,941\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n47,161\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n42,064\n\n \n\n \n\n \n \n \nTotal interest expense\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n26,272\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n25,222\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n22,345\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n19,414\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n15,359\n\n \n\n \n\n \n \n \nNet interest income\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n29,511\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n29,540\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n28,596\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n27,747\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n26,705\n\n \n\n \n\n \n \n \nProvision for credit losses\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,326\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,573\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,817\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,231\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,561\n\n \n\n \n\n \n \n \nNet interest income after provision for credit losses\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n27,185\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n26,967\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n26,779\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n25,516\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n25,144\n\n \n\n \n\n \n \n \nPrivate wealth management service fees\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,111\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,933\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,945\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,893\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,654\n\n \n\n \n\n \n \n \nGain on sale of SBA loans\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n195\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n284\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n851\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n444\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n476\n\n \n\n \n\n \n \n \nService charges on deposits\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n940\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n848\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n835\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n766\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n682\n\n \n\n \n\n \n \n \nLoan fees\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n847\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n869\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n786\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n905\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n803\n\n \n\n \n\n \n \n \nLoss on sale of securities\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(8\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(45\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n \nSwap fees\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n198\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n438\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n992\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n977\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n557\n\n \n\n \n\n \n \n \nOther non-interest income\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,474\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,722\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,021\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,434\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,238\n\n \n\n \n\n \n \n \nTotal non-interest income\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n6,757\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n7,094\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n8,430\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n7,374\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n8,410\n\n \n\n \n\n \n \n \nCompensation\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n16,157\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n14,450\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n15,573\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n15,129\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n15,908\n\n \n\n \n\n \n \n \nOccupancy\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n607\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n571\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n575\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n603\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n631\n\n \n\n \n\n \n \n \nProfessional fees\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,571\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,313\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,429\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,240\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,343\n\n \n\n \n\n \n \n \nData processing\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,018\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n936\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n953\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,061\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n875\n\n \n\n \n\n \n \n \nMarketing\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n818\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n724\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n758\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n779\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n628\n\n \n\n \n\n \n \n \nEquipment\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n345\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n340\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n349\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n355\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n295\n\n \n\n \n\n \n \n \nComputer software\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,418\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,317\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,289\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,197\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,183\n\n \n\n \n\n \n \n \n FDIC insurance\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n610\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n585\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n680\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n580\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n394\n\n \n\n \n\n \n \n \nOther non-interest expense\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n798\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,352\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,583\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,087\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n510\n\n \n\n \n\n \n \n \nTotal non-interest expense\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n23,342\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n21,588\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n23,189\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n22,031\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n21,767\n\n \n\n \n\n \n \n \nIncome before income tax expense\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n10,600\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n12,473\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n12,020\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n10,859\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n11,787\n\n \n\n \n\n \n \n \nIncome tax expense\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,752\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,703\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,079\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,522\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,808\n\n \n\n \n\n \n \n \nNet income\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n8,848\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n9,770\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n9,941\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n8,337\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n8,979\n\n \n\n \n\n \n \n \nPreferred stock dividends\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n219\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n219\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n218\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n219\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n219\n\n \n\n \n\n \n \n \nNet income available to common shareholders\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n8,629\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n9,551\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n9,723\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n8,118\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n8,760\n\n \n\n \n\n \n \n \nPer common share:\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nBasic earnings\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n1.04\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n1.15\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n1.17\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n0.98\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n1.05\n\n \n\n \n\n \n \n \nDiluted earnings\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.04\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.15\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.17\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.98\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.05\n\n \n\n \n\n \n \n \nDividends declared\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.2500\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.2275\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.2275\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.2275\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.2275\n\n \n\n \n\n \n \n \nBook value\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n34.41\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n33.39\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n32.32\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n31.34\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n30.65\n\n \n\n \n\n \n \n \nTangible book value\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n32.97\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n31.94\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n30.87\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n29.89\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n29.19\n\n \n\n \n\n \n \n \nWeighted-average common shares outstanding(1)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n8,125,319\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n8,110,462\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n8,107,641\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n8,061,841\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n8,148,525\n\n \n\n \n\n \n \n \nWeighted-average diluted common shares outstanding(1)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n8,125,319\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n8,110,462\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n8,107,641\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n8,061,841\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n8,148,525\n\n \n\n \n\n \n \n \n \n(1)\n\n \n\n \n\n \nExcluding participating securities.\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n NET INTEREST INCOME ANALYSIS \n\n \n\n \n\n \n \n \n \n \n \n (Unaudited) \n\n \n\n \n\n \n \n\n \n\n \n\n \n For the Three Months Ended \n\n \n\n \n\n \n \n \n (Dollars in thousands) \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31, 2024 \n\n \n\n \n\n \n \n\n \n\n \n\n \n December 31, 2023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31, 2023 \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n Average \n\n \n\n \n Balance \n\n \n\n \n\n \n \n\n \n\n \n\n \n Interest \n\n \n\n \n\n \n \n\n \n\n \n\n \n Average \n\n \n\n \n Yield/Rate(4) \n\n \n\n \n\n \n \n\n \n\n \n\n \n Average \n\n \n\n \n Balance \n\n \n\n \n\n \n \n\n \n\n \n\n \n Interest \n\n \n\n \n\n \n \n\n \n\n \n\n \n Average \n\n \n\n \n Yield/Rate(4) \n\n \n\n \n\n \n \n\n \n\n \n\n \n Average \n\n \n\n \n Balance \n\n \n\n \n\n \n \n\n \n\n \n\n \n Interest \n\n \n\n \n\n \n \n\n \n\n \n\n \n Average \n\n \n\n \n Yield/Rate(4) \n\n \n\n \n\n \n \n \n Interest-earning assets \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nCommercial real estate and other mortgage loans(1)\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n1,721,186\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n28,120\n\n \n\n \n\n \n \n\n \n\n \n\n \n6.54\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n1,675,926\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n27,359\n\n \n\n \n\n \n \n\n \n\n \n\n \n6.53\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n1,518,053\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n21,717\n\n \n\n \n\n \n \n\n \n\n \n\n \n5.72\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nCommercial and industrial loans(1)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,115,724\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n22,724\n\n \n\n \n\n \n \n\n \n\n \n\n \n8.15\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,089,558\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n22,751\n\n \n\n \n\n \n \n\n \n\n \n\n \n8.35\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n916,457\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n17,557\n\n \n\n \n\n \n \n\n \n\n \n\n \n7.66\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nConsumer and other loans(1)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n50,544\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n705\n\n \n\n \n\n \n \n\n \n\n \n\n \n5.58\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n45,309\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n577\n\n \n\n \n\n \n \n\n \n\n \n\n \n5.09\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n46,690\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n540\n\n \n\n \n\n \n \n\n \n\n \n\n \n4.63\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nTotal loans and leases receivable(1)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,887,454\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n51,549\n\n \n\n \n\n \n \n\n \n\n \n\n \n7.14\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,810,793\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n50,687\n\n \n\n \n\n \n \n\n \n\n \n\n \n7.21\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,481,200\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n39,814\n\n \n\n \n\n \n \n\n \n\n \n\n \n6.42\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nMortgage-related securities(2)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n241,940\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,276\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.76\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n221,708\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,061\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.72\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n182,494\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,270\n\n \n\n \n\n \n \n\n \n\n \n\n \n2.78\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nOther investment securities(3)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n67,980\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n518\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.05\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n67,444\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n541\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.21\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n55,722\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n320\n\n \n\n \n\n \n \n\n \n\n \n\n \n2.30\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nFHLB stock\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n12,271\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n282\n\n \n\n \n\n \n \n\n \n\n \n\n \n9.19\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n12,960\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n279\n\n \n\n \n\n \n \n\n \n\n \n\n \n8.61\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n17,125\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n327\n\n \n\n \n\n \n \n\n \n\n \n\n \n7.64\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nShort-term investments\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n85,072\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,158\n\n \n\n \n\n \n \n\n \n\n \n\n \n5.44\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n86,580\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,193\n\n \n\n \n\n \n \n\n \n\n \n\n \n5.51\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n28,546\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n333\n\n \n\n \n\n \n \n\n \n\n \n\n \n4.67\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nTotal interest-earning assets\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,294,717\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n55,783\n\n \n\n \n\n \n \n\n \n\n \n\n \n6.77\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,199,485\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n54,761\n\n \n\n \n\n \n \n\n \n\n \n\n \n6.85\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,765,087\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n42,064\n\n \n\n \n\n \n \n\n \n\n \n\n \n6.09\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nNon-interest-earning assets\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n233,224\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n255,167\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n219,513\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTotal assets\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,527,941\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,454,652\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n2,984,600\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n Interest-bearing liabilities \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTransaction accounts\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n862,896\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n8,447\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.92\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n785,480\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n7,657\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.90\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n567,435\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,840\n\n \n\n \n\n \n \n\n \n\n \n\n \n2.71\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nMoney market\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n761,893\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n7,565\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.97\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n734,903\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n7,145\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.89\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n699,314\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4,497\n\n \n\n \n\n \n \n\n \n\n \n\n \n2.57\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nCertificates of deposit\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n278,248\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,210\n\n \n\n \n\n \n \n\n \n\n \n\n \n4.61\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n278,438\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,160\n\n \n\n \n\n \n \n\n \n\n \n\n \n4.54\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n236,083\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,117\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.59\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nWholesale deposits\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n457,536\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4,615\n\n \n\n \n\n \n \n\n \n\n \n\n \n4.03\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n450,880\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4,682\n\n \n\n \n\n \n \n\n \n\n \n\n \n4.15\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n187,784\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,976\n\n \n\n \n\n \n \n\n \n\n \n\n \n4.21\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nTotal interest-bearing deposits\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,360,573\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n23,837\n\n \n\n \n\n \n \n\n \n\n \n\n \n4.04\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,249,701\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n22,644\n\n \n\n \n\n \n \n\n \n\n \n\n \n4.03\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,690,616\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n12,430\n\n \n\n \n\n \n \n\n \n\n \n\n \n2.94\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nFHLB advances\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n287,307\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,717\n\n \n\n \n\n \n \n\n \n\n \n\n \n2.39\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n301,773\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,851\n\n \n\n \n\n \n \n\n \n\n \n\n \n2.45\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n398,109\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,461\n\n \n\n \n\n \n \n\n \n\n \n\n \n2.47\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nOther borrowings\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n49,457\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n718\n\n \n\n \n\n \n \n\n \n\n \n\n \n5.81\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n49,394\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n727\n\n \n\n \n\n \n \n\n \n\n \n\n \n5.89\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n36,794\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n468\n\n \n\n \n\n \n \n\n \n\n \n\n \n5.09\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nTotal interest-bearing liabilities\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,697,337\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n26,272\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.90\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,600,868\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n25,222\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.88\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,125,519\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n15,359\n\n \n\n \n\n \n \n\n \n\n \n\n \n2.89\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nNon-interest-bearing demand deposit accounts\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n443,416\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n448,818\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n497,770\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nOther non-interest-bearing liabilities\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n93,307\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n119,833\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n98,347\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTotal liabilities\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,234,060\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,169,519\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,721,636\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nStockholders’ equity\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n293,881\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n285,133\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n262,964\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTotal liabilities and stockholders’ equity\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,527,941\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,454,652\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n2,984,600\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nNet interest income\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n29,511\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n29,539\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n26,705\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nInterest rate spread\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2.88\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2.97\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3.19\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nNet interest-earning assets\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n597,380\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n598,617\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n639,568\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nNet interest margin\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3.58\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3.69\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3.86\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \n \n(1)\n\n \n\n \n\n \nThe average balances of loans and leases include non-accrual loans and leases and loans held for sale. Interest income related to non-accrual loans and leases is recognized when collected. Interest income includes net loan fees collected in lieu of interest.\n\n \n\n \n\n \n \n \n(2)\n\n \n\n \n\n \nIncludes amortized cost basis of assets available for sale and held to maturity.\n\n \n\n \n\n \n \n \n(3)\n\n \n\n \n\n \nYields on tax-exempt municipal obligations are not presented on a tax-equivalent basis in this table. \n\n \n\n \n\n \n \n \n(4)\n\n \n\n \n\n \nRepresents annualized yields/rates. \n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n ASSET AND LIABILITY BETA ANALYSIS \n\n \n\n \n\n \n \n \n \n \n \n \n\n \n\n \n\n \n For the Three Months Ended \n\n \n\n \n\n \n \n \n (Unaudited) \n\n \n\n \n\n \n March 31 , \n\n \n\n \n 2024 \n\n \n\n \n\n \n \n\n \n\n \n\n \n December 31 , \n\n \n\n \n 2023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31 , \n\n \n\n \n 2023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n December 31 , \n\n \n\n \n 2021 \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n Average \n\n \n\n \n Yield/Rate (3) \n\n \n\n \n\n \n \n\n \n\n \n\n \n Average \n\n \n\n \n Yield/Rate (3) \n\n \n\n \n\n \n \n\n \n\n \n\n \n Increase \n\n \n\n \n (Decrease) \n\n \n\n \n\n \n \n\n \n\n \n\n \n Average \n\n \n\n \n Yield/Rate (3) \n\n \n\n \n\n \n \n\n \n\n \n\n \n Increase \n\n \n\n \n (Decrease) \n\n \n\n \n\n \n \n\n \n\n \n\n \n Average \n\n \n\n \n Yield/Rate (3) \n\n \n\n \n\n \n \n\n \n\n \n\n \n Increase \n\n \n\n \n (Decrease) \n\n \n\n \n\n \n \n \nTotal loans and leases receivable (a)\n\n \n\n \n\n \n7.14\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n7.21\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n(0.07\n\n \n\n \n\n \n)%\n\n \n\n \n\n \n \n\n \n\n \n\n \n6.42\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n0.72\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n4.13\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.01\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nTotal interest-earning assets(b)\n\n \n\n \n\n \n6.77\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n6.85\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n(0.08\n\n \n\n \n\n \n)%\n\n \n\n \n\n \n \n\n \n\n \n\n \n6.09\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n0.68\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.81\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n2.96\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nAdjusted total loans and leases receivable (1)(c)\n\n \n\n \n\n \n7.03\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n7.06\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n(0.03\n\n \n\n \n\n \n)%\n\n \n\n \n\n \n \n\n \n\n \n\n \n6.31\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n0.72\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.82\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.21\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nAdjusted total interest-earning assets (1)(d)\n\n \n\n \n\n \n6.68\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n6.71\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n(0.03\n\n \n\n \n\n \n)%\n\n \n\n \n\n \n \n\n \n\n \n\n \n5.99\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n0.69\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.54\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.14\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nTotal core deposits(e)\n\n \n\n \n\n \n3.28\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.20\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n0.08\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n2.09\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n1.19\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n0.13\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.15\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nTotal bank funding(f)\n\n \n\n \n\n \n3.31\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.27\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n0.04\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n2.30\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n1.01\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n0.33\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n2.98\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nNet interest margin(g)\n\n \n\n \n\n \n3.58\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.69\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n(0.11\n\n \n\n \n\n \n)%\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.86\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n(0.28\n\n \n\n \n\n \n)%\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.39\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n0.19\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nAdjusted net interest margin(h)\n\n \n\n \n\n \n3.43\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.50\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n(0.07\n\n \n\n \n\n \n)%\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.74\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n(0.31\n\n \n\n \n\n \n)%\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.18\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n0.25\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nEffective fed funds rate (2)(i)\n\n \n\n \n\n \n5.33\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n5.33\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n4.51\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n0.82\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n0.08\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n5.25\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n Beta Calculations :\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTotal loans and leases receivable(a)/(i)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n88.1\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n57.3\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nTotal interest-earning assets(b)/(i)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n83.8\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n56.4\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nAdjusted total loans and leases receivable (1)(c)/(i)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n87.5\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n61.1\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nAdjusted total interest-earning assets (1)(d)/(i)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n83.6\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n59.8\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nTotal core deposits(e/i)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n145.1\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n60.0\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nTotal bank funding(f)/(i)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n122.0\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n56.8\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nNet interest margin(g/i)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(34.1\n\n \n\n \n\n \n)%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3.6\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nAdjusted net interest margin(h/i)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(37.8\n\n \n\n \n\n \n)%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4.8\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \n \n(1)\n\n \n\n \n\n \nExcluding fees in lieu of interest.\n\n \n\n \n\n \n \n \n(2)\n\n \n\n \n\n \n Board of Governors of the Federal Reserve System (US), Effective Federal Funds Rate [DFF]. Retrieved from FRED, Federal Reserve Bank of St. Louis . Represents average daily rate.\n\n \n\n \n\n \n \n \n(3)\n\n \n\n \n\n \nRepresents annualized yields/rates.\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n PROVISION FOR CREDIT LOSS COMPOSITION \n\n \n\n \n\n \n \n \n \n \n \n (Unaudited) \n\n \n\n \n\n \n \n\n \n\n \n\n \n For the Three Months Ended \n\n \n\n \n\n \n \n \n (Dollars in thousands) \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31 , \n\n \n\n \n 2 024 \n\n \n\n \n\n \n \n\n \n\n \n\n \n December 31 , \n\n \n\n \n 2 023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n September 30 , \n\n \n\n \n 2 023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n June 30 , \n\n \n\n \n 2 023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31 , \n\n \n\n \n 2 023 \n\n \n\n \n\n \n \n \nChange due to qualitative factor changes\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n740\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n(432\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n506\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n(50\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n9\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nChange due to quantitative factor changes\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(199\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(260\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(1,372\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(295\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n474\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nCharge-offs\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n921\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n724\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n562\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n329\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n166\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nRecoveries\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(227\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(114\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(84\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(245\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(107\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n \nChange in reserves on individually evaluated loans, net\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n629\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,008\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,265\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,093\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(36\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n \nChange due to loan growth, net\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n354\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n629\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n817\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,227\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n979\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nChange in unfunded commitment reserves\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n108\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n17\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n123\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n172\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n76\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTotal provision for credit losses\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n2,326\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n2,572\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n1,817\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n2,231\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n1,561\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n PERFORMANCE RATIOS \n\n \n\n \n\n \n \n \n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n For the Three Months Ended \n\n \n\n \n\n \n \n \n (Unaudited) \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31 , \n\n \n\n \n 2 024 \n\n \n\n \n\n \n \n\n \n\n \n\n \n December 31 , \n\n \n\n \n 2 023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n September 30 , \n\n \n\n \n 2 023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n June 30 , \n\n \n\n \n 2 023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31 , \n\n \n\n \n 2 023 \n\n \n\n \n\n \n \n \nReturn on average assets (annualized)\n\n \n\n \n\n \n \n\n \n\n \n\n \n0.98\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n1.11\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n1.19\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n1.04\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n1.17\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nReturn on average common equity (annualized)\n\n \n\n \n\n \n \n\n \n\n \n\n \n12.24\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n13.99\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n14.62\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n12.58\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n13.96\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nEfficiency ratio\n\n \n\n \n\n \n \n\n \n\n \n\n \n63.76\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n58.34\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n61.96\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n61.68\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n62.02\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nInterest rate spread\n\n \n\n \n\n \n \n\n \n\n \n\n \n2.88\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n2.97\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.07\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.15\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.19\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nNet interest margin\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.58\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.69\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.76\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.81\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.86\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nAverage interest-earning assets to average interest-bearing liabilities\n\n \n\n \n\n \n \n\n \n\n \n\n \n122.15\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n123.02\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n123.59\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n124.82\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n130.09\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n ASSET QUALITY RATIOS \n \n \n \n \n \n \n (Unaudited) \n\n \n\n \n\n \n \n\n \n\n \n\n \n As of \n\n \n\n \n\n \n \n \n (Dollars in thousands) \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31 , \n\n \n\n \n 2 024 \n\n \n\n \n\n \n \n\n \n\n \n\n \n December 31 , \n\n \n\n \n 2 023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n September 30 , \n\n \n\n \n 2 023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n June 30 , \n\n \n\n \n 2 023 \n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31 , \n\n \n\n \n 2023 \n\n \n\n \n\n \n \n \nNon-accrual loans and leases\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n19,829\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n20,597\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n17,628\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n15,721\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,412\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nRepossessed assets\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n317\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n247\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n61\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n65\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n89\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTotal non-performing assets\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n20,146\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n20,844\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n17,689\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n15,786\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,501\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nNon-accrual loans and leases as a percent of total gross loans and leases\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.68\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.72\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.64\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.59\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.13\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nNon-performing assets as a percent of total gross loans and leases plus repossessed assets\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.69\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.73\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.64\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.59\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.14\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nNon-performing assets as a percent of total assets\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.57\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.59\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.52\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.48\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.11\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nAllowance for credit losses as a percent of total gross loans and leases\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.19\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.16\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n...

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