Horizon Bancorp, Inc.NASDAQ: HBNC

Horizon Bancorp, Inc. Reports Positive Fourth Quarter 2025 Results, Entering 2026 with Peer Leading Performance Metrics

· Issued by Horizon Bancorp, Inc. via GlobeNewswire

MICHIGAN CITY, Ind., Jan. 21, 2026 (GLOBE NEWSWIRE) -- (NASDAQ GS: HBNC) – Horizon Bancorp, Inc. (“Horizon” or the “Company”), the parent company of Horizon Bank (the “Bank”), announced its unaudited financial results for the three months ended December 31, 2025.

“Horizon’s fourth quarter results demonstrate excellent execution of the balance sheet repositioning and the core strength of our community banking model. We have delivered on our commitment to shareholders to create a top performing community bank with durable, peer-leading performance metrics and shareholder returns. The fourth quarter exceeded our prior performance estimates, with annualized return on average assets exceeding 1.60%, returns on average equity approaching 16%, and a net interest margin of 4.29%. We are pleased with the results for our shareholders and the transparency the quarter provided to highlight the strength of Horizon’s community banking model, which remains the cornerstone of our value proposition", President and CEO, Thomas Prame stated. "More importantly, the Company is kicking off the new year from a position of strength, with the franchise well positioned to deliver durable earnings and continued top-tier profitability metrics in 2026. The commercial loan engine continues to produce disciplined and high-quality growth, which we expect to fund through our client-focused branch distribution network and our relationship-based community bankers. Credit quality remains excellent, and expenses continue to be well managed. As we look ahead, we will remain focused on creating sustainable long-term value for our shareholders through our disciplined operating model, consistent profitable growth and peer leading capital generation".

Net income for the three months ended December 31, 2025 was $26.9 million, or $0.53 per diluted share, compared to a net loss of $222.0 million, or $(4.69), for the third quarter of 2025 and a net loss of $10.9 million, or $(0.25) per diluted share, for the fourth quarter of 2024.

Net loss for the twelve months ended December 31, 2025 was $150.5 million, or $(3.24) per diluted share, compared to net income of $35.4 million, or $0.80, for the twelve months ended December 31, 2024.

Fourth Quarter 2025 Highlights

  • Strong performance of the core community banking model, combined with the successful completion of the balance sheet repositioning efforts, resulted in significant performance improvement for the quarter. The Company's return on average assets and return on average equity improved to 1.63% and 15.71%, respectively. The franchise is well positioned to continue to achieve top performance metrics moving forward.

  • Net interest income of $63.5 million increased 8.7% compared with $58.4 million for the three months ended September 30, 2025, and 19.5% compared with $53.1 million in the year ago period. The net interest margin, on a fully taxable equivalent ("FTE") basis1, expanded for the ninth consecutive quarter, to 4.29%, compared with 3.52% for the three months ended September 30, 2025 and 2.97% for the three months ended December 31, 2024.

  • Total loans held for investment ("HFI") increased 4.4% compared to the linked quarter annualized, with strong organic commercial loan growth of $75.8 million, or 9.1% annualized. Loan pipelines continue to be consistent, reflective of Horizon’s attractive markets and embedded community banking model.

  • Funding remains durable with costs trending favorably. Non-interest bearing deposits remained relatively flat, while declines in interest-bearing balances largely reflected the communicated planned exit of high-cost, transactional deposits. Total interest-bearing liability cost performed well, decreasing by another 34 bps during the quarter.

  • Credit quality remained strong, with annualized net charge offs of 0.08% of average loans during the fourth quarter. Non-performing assets remain well within expected ranges, with non-performing assets to total assets of 63 bps for the fourth quarter.

  • Expenses continued to be well managed, and were comparable to the third quarter when considering a select few items related to the balance sheet activities, displaying management's continued commitment to generate positive operating leverage through a more efficient expense base.

_________________________

1 Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

Financial Highlights

(Dollars in Thousands Except Share and Per Share Data and Ratios)

Three Months Ended

December 31,

September 30,

June 30,

March 31,

December 31,

2025

2025

2025

2025

2024

Income statement:

Net interest income

$

63,476

$

58,386

$

55,355

$

52,267

$

53,127

Provision for credit losses

1,630

(3,572

)

2,462

1,376

1,171

Non-interest income (loss)

11,463

(295,334

)

10,920

16,499

(28,954

)

Non-interest expense

40,615

52,952

39,417

39,306

44,935

Income tax expense (benefit)

5,773

(64,338

)

3,752

4,141

(11,051

)

Net Income (Loss)

$

26,921

$

(221,990

)

$

20,644

$

23,943

$

(10,882

)

Per share data:

Basic earnings (loss) per share

$

0.53

$

(4.69

)

$

0.47

$

0.55

$

(0.25

)

Diluted earnings (loss) per share

0.53

(4.69

)

0.47

0.54

(0.25

)

Cash dividends declared per common share

0.16

0.16

0.16

0.16

0.16

Book value per common share

13.50

12.96

18.06

17.72

17.46

Market value - high

18.47

16.88

15.88

17.76

18.76

Market value - low

15.04

15.01

12.92

15.00

14.57

Weighted average shares outstanding - Basic

50,975,693

47,311,642

43,794,490

43,777,109

43,721,211

Weighted average shares outstanding - Diluted

51,277,134

47,311,642

44,034,663

43,954,164

43,721,211

Common shares outstanding (end of period)

50,978,030

50,970,530

43,801,507

43,785,932

43,722,086

Key ratios:

Return on average assets

1.63

%

(12.07

)%

1.09

%

1.25

%

(0.56

)%

Return on average stockholders' equity

15.71

(120.37

)

10.49

12.44

(5.73

)

Total equity to total assets

10.69

9.84

10.34

10.18

9.79

Total loans to deposit ratio

92.62

87.41

87.52

85.21

87.75

Allowance for credit losses to HFI loans

1.05

1.04

1.09

1.07

1.07

Annualized net charge-offs of average total loans(1)

0.08

0.07

0.02

0.07

0.05

Efficiency ratio

54.20

(22.35

)

59.47

57.16

185.89

Key metrics (Non-GAAP)(2)

Net FTE interest margin

4.29

%

3.52

%

3.23

%

3.04

%

2.97

%

Return on average tangible common equity

20.66

(155.03

)

13.24

15.79

(7.35

)

Tangible common equity to tangible assets

8.38

7.60

8.37

8.19

7.83

Tangible book value per common share

$

10.32

$

9.76

$

14.32

$

13.96

$

13.68

(1)Average total loans includes loans held for investment and held for sale.

(2)Non-GAAP financial metrics. See non-GAAP reconciliation included herein for the most directly comparable GAAP measures.

Income Statement Highlights

Net Interest Income

Net interest income was $63.5 million in the fourth quarter of 2025, compared to $58.4 million in the third quarter of 2025, driven by the continued expansion of the Company's net FTE interest margin1, which increased to 4.29% for the fourth quarter of 2025, compared to 3.52% for the third quarter of 2025. The margin saw continued expansion as a by product of the balance sheet repositioning, stronger realized deposit betas relative to recent reductions in short-term interest rates and relatively stable overall earning asset yields since affecting the balance sheet actions in late August.

Provision for Credit Losses

During the fourth quarter of 2025, the Company recorded a provision for credit losses of $1.6 million. This compares to a recorded benefit for credit losses of $3.6 million during the third quarter of 2025, and a provision for credit losses expense of $1.2 million during the fourth quarter of 2024. The increase in the provision for credit losses during the fourth quarter of 2025 when compared with the third quarter of 2025 was primarily attributable to the release of approximately $3.1 million in total Allowance against the sold portion of the Indirect Auto portfolio and the release of the $0.2 million reserve against the previous Held-To-Maturity investment portfolio in the third quarter, which did not recur in the fourth quarter. Additionally, the Provision increased primarily due to changes in the baseline economic outlook.

For the fourth quarter of 2025, Net Charge-Offs were $1.0 million, or an annualized 0.08% of average loans outstanding, compared to Net Charge-Offs of $0.8 million, or an annualized 0.07% of average loans outstanding for the third quarter of 2025, and Net Charge-Offs of $0.6 million, or an annualized 0.05% of average loans outstanding, in the fourth quarter of 2024.

The Company’s Allowance for Credit Losses as a percentage of period-end loans HFI was 1.05% at December 31, 2025, compared to 1.04% at September 30, 2025 and 1.07% at December 31, 2024.

Non-Interest Income

For the Quarter Ended

December 31,

September 30,

June 30

March 31,

December 31,

(Dollars in Thousands)

2025

2025

2025

2025

2024

Non-interest (Loss) Income

Service charges on deposit accounts

$

3,341

$

3,474

$

3,208

$

3,208

$

3,276

Wire transfer fees

66

71

69

71

124

Interchange fees

3,445

3,510

3,403

3,241

3,353

Fiduciary activities

1,560

1,363

1,251

1,326

1,313

Gain (loss) on sale of investment securities

1

(299,132

)

—

(407

)

(39,140

)

Gain on sale of mortgage loans

1,296

1,208

1,219

1,076

1,071

Mortgage servicing income net of impairment

352

351

375

385

376

Increase in cash value of bank owned life insurance

360

379

346

335

335

Other income (loss)

1,042

(6,558

)

1,049

7,264

338

Total non-interest (loss) income

$

11,463

$

(295,334

)

$

10,920

$

16,499

$

(28,954

)

Total Non-Interest Income was $11.5 million in the fourth quarter of 2025, compared to Non-Interest (Loss) of $295.3 million in the third quarter of 2025. The increase in Non-Interest Income of $306.8 million is due to the $299.1 million loss on the sale investment securities and the pre-tax loss of $7.7 million on the sale of the Company's Indirect Auto portfolio, both of which were related to the balance sheet repositioning efforts during the third quarter, which did not recur. Other categories remained relatively unchanged when compared with the prior period.

_________________________

1 Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

Non-Interest Expense

For the Quarter Ended

December 31,

September 30,

June 30,

March 31,

December 31,

(Dollars in Thousands)

2025

2025

2025

2025

2024

Non-interest Expense

Salaries and employee benefits

$

21,895

$

22,698

$

22,731

$

22,414

$

25,564

Net occupancy expenses

3,718

3,321

3,127

3,702

3,431

Data processing

3,128

2,933

2,951

2,872

2,841

Professional fees

1,083

808

735

826

736

Outside services and consultants

3,035

3,844

3,278

3,265

4,470

Loan expense

1,183

1,237

1,231

689

1,285

FDIC insurance expense

1,251

1,345

1,216

1,288

1,193

Core deposit intangible amortization

706

706

816

816

843

Merger related expenses

—

—

—

305

—

Prepayment penalties

—

12,680

—

—

—

Other losses

732

131

245

228

371

Other expense

3,884

3,249

3,087

2,901

4,201

Total non-interest expense

$

40,615

$

52,952

$

39,417

$

39,306

$

44,935

Total Non-Interest Expense was $40.6 million in the fourth quarter of 2025, compared with $53.0 million in the third quarter of 2025. The decrease in Non-Interest Expense during the fourth quarter of 2025 when compared with the prior period was primarily driven by a $12.7 million prepayment penalty related to the payoff of $700 million in FHLB advances during the third quarter, which did not recur. The increase in Other Losses was the result of the write off of unamortized issuance costs of $0.7 million related to the early redemption of the Company's subordinated notes due 2030. Apart from this specific item, expenses were relatively unchanged from the prior quarter, with declines in personnel expense offset by higher seasonal occupancy expenses, marketing expense and higher professional expense from legal fees to settle certain legacy items.

Income Taxes

Horizon recorded a net tax expense of $5.8 million for the fourth quarter of 2025, resulting in an effective tax rate of 17.7%, which is consistent with the Company's estimated annual effective tax rate.

Balance Sheet Highlights

Total assets decreased by $275.9 million, or 4.1%, to $6.4 billion as of December 31, 2025, from $6.7 billion as of September 30, 2025. The decrease in total assets is primarily due to the decrease in interest earning deposits of $309.2 million, a decrease in other assets of $10.8 million, a decrease in cash of $9.6 million, and a decrease in total investment securities of $4.5 million. Total loans were $4.9 billion at December 31, 2025, an increase of $60.7 million from September 30, 2025 balances, primarily driven by organic commercial loan growth.

Total deposits decreased by $245.5 million, or 4.4%, to $5.3 billion as of December 31, 2025 when compared to balances as of September 30, 2025, which is largely attributable to the intentional runoff of another $195 million in higher-cost transactional deposit balances. The decrease also was driven by a decrease in time deposits of $97.2 million, a decrease of interest bearing deposits of $75.6 million, and a decrease in savings and money market deposits of $28.5 million. Non-interest bearing deposit balances decreased $44.2 million in the current period, which is largely attributable to seasonal trends, but increased from the year ago period. Subordinated notes balances decreased by $55.8 million during the quarter related to the early redemption of the Company's subordinated notes due 2030, as previously planned.

Capital

The following table presents the Consolidated Regulatory Capital Ratios of the Company for the previous three quarters, and the Company’s preliminary estimate of its consolidated regulatory capital ratios for the quarter ended December 31, 2025:

For the Quarter Ended

December 31,

September 30,

June 30,

March 31,

2025*

2025

2025

2025

Consolidated Capital Ratios

Total capital (to risk-weighted assets)

14.37

%

15.00

%

14.44

%

14.26

%

Tier 1 capital (to risk-weighted assets)

11.52

11.27

12.48

12.33

Common equity tier 1 capital (to risk-weighted assets)

10.43

10.17

11.48

11.32

Tier 1 capital (to average assets)

9.57

8.22

9.59

9.25

*Preliminary estimate - may be subject to change

As of December 31, 2025, the ratio of total stockholders’ equity to total assets is 10.69%. Book value per common share was $13.50, increasing $0.54 during the fourth quarter of 2025.

Tangible common equity1 totaled $525.9 million at December 31, 2025, and the ratio of tangible common equity to tangible assets1 was 8.38% at December 31, 2025, up from 7.60% at September 30, 2025. Tangible book value, which excludes intangible assets from total equity, per common share1 was $10.32, increasing $0.56 during the fourth quarter of 2025.

Credit Quality

As of December 31, 2025, total non-accrual loans increased by $3.1 million from September 30, 2025, to 0.67% of total loans HFI. Total non-performing assets increased $4.9 million, to $40.6 million, compared to $35.7 million as of September 30, 2025. The ratio of non-performing assets to total assets was 0.63%, compared to 0.53% as of September 30, 2025.

For the quarter ended December 31, 2025, net charge-offs were $1.0 million, compared to $0.8 million as of September 30, 2025, or 0.08% annualized of average loans.

_________________________

1 Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

Earnings Conference Call

As previously announced, Horizon will host a conference call to review its fourth quarter financial results and operating performance.

Participants may access the live conference call on January 22, 2026 at 7:30 a.m. CT (8:30 a.m. ET) by dialing 833-974-2379 from the United States, 866-450-4696 from Canada or 1-412-317-5772 from international locations and requesting the “Horizon Bancorp, Inc. Call.” Participants are asked to dial in approximately 10 minutes prior to the call.

A telephone replay of the call will be available approximately one hour after the end of the conference through January 30, 2026. The replay may be accessed by dialing 855-669-9658 from the United States and Canada, or 1–412–317-0088 from other international locations, and entering the access code 1841881.

About Horizon Bancorp, Inc.

Horizon Bancorp, Inc. (NASDAQ GS: HBNC) is the $6.4 billion-asset commercial bank holding company for Horizon Bank, which serves customers across diverse and economically attractive Midwestern markets through convenient digital and virtual tools, as well as its Indiana and Michigan branches. Horizon's retail offerings include prime residential and other secured consumer lending to in-market customers, as well as a range of personal banking and wealth management solutions. Horizon also provides a comprehensive array of in-market business banking and treasury management services, as well as equipment financing solutions for customers regionally and nationally, with commercial lending representing over half of total loans. More information on Horizon, headquartered in Northwest Indiana's Michigan City, is available at horizonbank.com and investor.horizonbank.com.

Use of Non-GAAP Financial Measures

Certain information set forth in this press release refers to financial measures determined by methods other than in accordance with GAAP. Specifically, we have included non-GAAP financial measures relating to net income, diluted earnings per share, pre-tax, pre-provision net income, net interest margin, tangible stockholders’ equity and tangible book value per share, efficiency ratio, the return on average assets, the return on average common equity, and return on average tangible equity. In each case, we have identified special circumstances that we consider to be non-recurring and have excluded them. Horizon believes these non-GAAP financial measures are helpful to investors and provide a greater understanding of our business and financial results without giving effect to one-time costs and non–recurring items. These measures are not necessarily comparable to similar measures that may be presented by other companies and should not be considered in isolation or as a substitute for the related GAAP measure. See the tables and other information below and contained elsewhere in this press release for reconciliations of the non-GAAP information identified herein and its most comparable GAAP measures.

Forward Looking Statements

This press release may contain forward–looking statements regarding the financial performance, business prospects, growth and operating strategies of Horizon Bancorp, Inc. and its affiliates (collectively, “Horizon”). For these statements, Horizon claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this press release should be considered in conjunction with the other information available about Horizon, including the information in the filings we make with the Securities and Exchange Commission (the “SEC”). Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance.

Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include: changes in U.S. trade policies, including the imposition of tariffs and retaliatory tariffs, changes within the domestic and international macroeconomic environment, including trade policy, monetary and fiscal policy, inflation levels, and conditions in the investment, credit, interest rate, and derivatives markets, and their impact on Horizon and its customers; current financial conditions within the banking industry; changes in the level and volatility of interest rates, changes in spreads on earning assets and changes in interest bearing liabilities; increased interest rate sensitivity; loss of key Horizon personnel; increases in disintermediation; potential loss of fee income, including interchange fees, as new and emerging alternative payment platforms take a greater market share of the payment systems; estimates of fair value of certain of Horizon’s assets and liabilities; changes in prepayment speeds, loan originations, credit losses, market values, collateral securing loans and other assets; changes in sources of liquidity; legislative and regulatory actions and reforms; changes in accounting policies or procedures as may be adopted and required by regulatory agencies; litigation, regulatory enforcement, and legal compliance risk and costs; rapid technological developments and changes; cyber terrorism and data security breaches; the rising costs of cybersecurity; the ability of the U.S. federal government to manage federal debt limits; climate change and social justice initiatives; the inability to realize cost savings or revenues or to effectively implement integration plans and other consequences associated with mergers, acquisitions, and divestitures; acts of terrorism, war and global conflicts, and the effects of foreign and military policies of the U.S. government; and supply chain disruptions and delays. These and additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in Horizon’s reports (such as the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K) filed with the SEC and available at the SEC’s website (www.sec.gov). Undue reliance should not be placed on the forward–looking statements, which speak only as of the date hereof. Horizon does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward–looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.

Condensed Consolidated Statements of Income

(Dollars in Thousands Except Per Share Data, Unaudited)

Three Months Ended

December 31,

September 30,

June 30,

March 31,

December 31,

2025

2025

2025

2025

2024

Interest Income

Loans receivable

$

77,238

$

79,561

$

78,618

$

74,457

$

76,747

Investment securities - taxable

7,688

6,631

5,941

6,039

6,814

Investment securities - tax-exempt

2,498

4,581

6,088

6,192

6,301

Other

1,864

2,063

830

2,487

3,488

Total interest income

89,288

92,836

91,477

89,175

93,350

Interest Expense

Deposits

21,228

25,726

26,052

25,601

27,818

Borrowed funds

1,749

5,924

8,171

9,188

10,656

Subordinated notes

1,811

1,731

829

829

829

Junior subordinated debentures issued to capital trusts

1,024

1,069

1,070

1,290

920

Total interest expense

25,812

34,450

36,122

36,908

40,223

Net Interest Income

63,476

58,386

55,355

52,267

53,127

Provision for credit losses

1,630

(3,572

)

2,462

1,376

1,171

Net Interest Income after Provision for Credit Losses

61,846

61,958

52,893

50,891

51,956

Non-interest Income

Service charges on deposit accounts

3,341

3,474

3,208

3,208

3,276

Wire transfer fees

66

71

69

71

124

Interchange fees

3,445

3,510

3,403

3,241

3,353

Fiduciary activities

1,560

1,363

1,251

1,326

1,313

Gain (loss) on sale of investment securities

1

(299,132

)

—

(407

)

(39,140

)

Gain on sale of mortgage loans

1,296

1,208

1,219

1,076

1,071

Mortgage servicing income net of impairment

352

351

375

385

376

Increase in cash value of bank owned life insurance

360

379

346

335

335

Other income (loss)

1,042

(6,558

)

1,049

7,264

338

Total non-interest income (loss)

11,463

(295,334

)

10,920

16,499

(28,954

)

Non-interest Expense

Salaries and employee benefits

21,895

22,698

22,731

22,414

25,564

Net occupancy expenses

3,718

3,321

3,127

3,702

3,431

Data processing

3,128

2,933

2,951

2,872

2,841

Professional fees

1,083

808

735

826

736

Outside services and consultants

3,035

3,844

3,278

3,265

4,470

Loan expense

1,183

1,237

1,231

689

1,285

FDIC insurance expense

1,251

1,345

1,216

1,288

1,193

Core deposit intangible amortization

706

706

816

816

843

Merger related expenses

—

—

—

305

—

Prepayment penalties

—

12,680

—

—

—

Other losses

732

131

245

228

371

Other expense

3,884

3,249

3,087

2,901

4,201

Total non-interest expense

40,615

52,953

39,417

39,306

44,935

Income (Loss) Before Income Taxes

32,694

(286,328

)

24,396

28,084

(21,933

)

Income tax expense (benefit)

5,773

(64,338

)

3,752

4,141

(11,051

)

Net Income (Loss)

$

26,921

$

(221,990

)

$

20,644

$

23,943

$

(10,882

)

Basic Earnings (Loss) Per Share

$

0.53

$

(4.69

)

$

0.47

$

0.55

$

(0.25

)

Diluted Earnings (Loss) Per Share

0.53

(4.69

)

0.47

0.54

(0.25

)

Condensed Consolidated Balance Sheet

(Dollars in Thousands, Unaudited)

Three Months Ended for the Period

December 31,

September 30,

June 30,

March 31,

December 31,

2025

2025

2025

2025

2024

Assets

Interest earning assets

Federal funds sold

$

—

$

—

$

2,024

$

—

$

—

Interest earning deposits

72,646

381,860

34,174

80,023

201,131

Interest earning time deposits

—

—

—

—

735

Federal Home Loan Bank stock

45,713

45,713

45,412

45,412

53,826

Investment securities, held for trading

3,883

598

—

—

—

Investment securities, available for sale

875,414

883,242

231,999

231,431

233,677

Investment securities, held to maturity

—

—

1,819,087

1,843,851

1,867,690

Loans held for sale

9,778

1,921

2,994

3,253

67,597

Gross loans held for investment (HFI)

4,876,542

4,823,669

4,985,582

4,909,815

4,847,040

Total Interest earning assets

5,883,976

6,137,003

7,121,272

7,113,784

7,271,696

Non-interest earning assets

Allowance for credit losses

(51,299

)

(50,178

)

(54,399

)

(52,654

)

(51,980

)

Cash

66,813

76,395

101,719

89,643

92,300

Cash value of life insurance

36,732

37,762

37,755

37,409

37,450

Other assets

215,460

226,247

148,773

143,675

152,635

Goodwill

155,211

155,211

155,211

155,211

155,211

Other intangible assets

7,180

7,886

8,592

9,407

10,223

Premises and equipment, net

92,805

93,413

93,398

93,499

93,864

Interest receivable

29,733

28,758

39,730

38,663

39,747

Total non-interest earning assets

552,635

575,494

530,779

514,855

529,450

Total assets

$

6,436,611

$

6,712,497

$

7,652,051

$

7,628,639

$

7,801,146

Liabilities

Savings and money market deposits

$

3,094,231

$

3,198,332

$

3,385,413

$

3,393,371

$

3,446,681

Time deposits

1,102,478

1,199,681

1,193,180

1,245,088

1,089,153

Borrowings

160,118

160,206

880,336

812,218

1,142,340

Repurchase agreements

88,468

86,966

95,089

87,851

89,912

Subordinated notes

98,215

154,011

55,807

55,772

55,738

Junior subordinated debentures issued to capital trusts

57,688

57,636

57,583

57,531

57,477

Total interest earning liabilities

4,601,198

4,856,832

5,667,408

5,651,832

5,881,301

Non-interest bearing deposits

1,078,708

1,122,888

1,121,163

1,127,324

1,064,818

Interest payable

12,892

12,395

14,007

11,441

11,137

Other liabilities

55,562

59,611

58,621

61,981

80,308

Total liabilities

5,748,360

6,051,726

6,861,199

6,852,578

7,037,564

Stockholders’ Equity

Preferred stock

—

—

—

—

—

Common stock

—

—

—

—

—

Additional paid-in capital

459,243

458,734

360,758

360,522

363,761

Retained earnings

255,004

...

236,312

466,497

452,945

436,122

Accumulated other comprehensive (loss)

(25,996

)

(34,275

)

(36,403

)

(37,406

)

(36,301

)

Total stockholders’ equity

688,251

660,771

790,852

776,061

763,582

Total liabilities and stockholders’ equity

$

6,436,611

$

6,712,497

$

7,652,051

$

7,628,639

$

7,801,146

Loans and Deposits

(Dollars in Thousands, Unaudited)

December 31,

September 30,

June 30,

March 31,

December 31,

% Change

2025

2025

2025

2025

2024

Q4'25 vs Q3'25

Q4'25 vs Q4'24

Loans:

Commercial real estate

$

2,421,863

$

2,366,956

$

2,321,951

$

2,262,910

$

2,202,858

2

%

10

%

Commercial & Industrial

1,010,545

989,609

976,740

918,541

875,297

2

%

15

%

Total commercial

3,432,408

3,356,565

3,298,691

3,181,451

3,078,155

2

%

12

%

Residential Real estate

772,427

783,850

786,026

801,726

802,909

(1

)%

(4

)%

Mortgage warehouse

—

—

—

—

—

—

%

—

%

Consumer

671,707

683,254

900,865

926,638

965,976

(2

)%

(30

)%

Total loans held for investment

4,876,542

4,823,669

4,985,582

4,909,815

4,847,040

1

%

1

%

Loans held for sale

9,778

1,921

2,994

3,253

67,597

409

%

(86

)%

Total loans

$

4,886,320

$

4,825,590

$

4,988,576

$

4,913,068

$

4,914,637

1

%

(1

)%

Deposits:

Interest bearing deposits

$

1,639,857

$

1,715,471

$

1,713,058

$

1,713,991

$

1,767,983

(4

)%

(7

)%

Savings and money market deposits

1,454,374

1,482,861

1,672,355

1,679,380

1,678,697

(2

)%

(13

)%

Time deposits

1,102,478

1,199,681

1,193,180

1,245,088

1,089,153

(8

)%

1

%

Total Interest bearing deposits

4,196,709

4,398,013

4,578,593

4,638,459

4,535,833

(5

)%

(7

)%

Non-interest bearing deposits

Non-interest bearing deposits

1,078,708

1,122,888

1,121,164

1,127,324

1,064,819

(4

)%

1

%

Total deposits

$

5,275,417

$

5,520,901

$

5,699,757

$

5,765,784

$

5,600,652

(4

)%

(6

)%

Average Balance Sheet

(Dollars in Thousands, Unaudited)

Three Months Ended

December 31, 2025

September 30, 2025

December 31, 2024

Average
Balance

Interest(4)(6)

Average
Rate(4)

Average
Balance

Interest(4)(6)

Average
Rate(4)

Average
Balance

Interest(4)(6)

Average
Rate(4)

Assets

Interest earning assets

Interest earning deposits (incl. Fed Funds Sold)

$

182,017

$

1,866

4.07

%

$

185,665

$

2,062

4.41

%

$

290,693

$

3,488

4.77

%

Federal Home Loan Bank stock

45,713

616

5.35

%

45,549

862

7.51

%

53,826

1,516

11.20

%

Investment securities - taxable (1)

570,786

7,687

5.34

%

792,829

5,769

2.89

%

1,079,377

5,298

1.95

%

Investment securities - non-taxable (1)

312,988

2,546

3.23

%

763,488

5,799

3.01

%

1,129,622

7,976

2.81

%

Total investment securities

883,774

10,233

4.59

%

1,556,317

11,568

2.95

%

2,208,999

13,274

2.39

%

Loans receivable (2) (3)

4,855,824

77,628

6.34

%

4,979,211

79,941

6.37

%

4,842,660

77,142

6.34

%

Total interest earning assets

5,967,328

90,343

6.01

%

6,766,742

94,433

5.54

%

7,396,178

95,420

5.13

%

Non-interest earning assets

Cash and due from banks

74,102

83,616

85,776

Allowance for credit losses

(49,815

)

(54,072

)

(52,697

)

Other assets

545,520

501,590

409,332

Total average assets

$

6,537,135

$

7,297,876

$

7,838,589

Liabilities and Stockholders' Equity

Interest bearing liabilities

Interest bearing demand deposits

$

1,686,435

$

5,572

1.31

%

$

1,708,446

$

6,687

1.55

%

$

1,716,598

$

6,861

1.59

%

Saving and money market deposits

1,445,144

5,587

1.53

%

1,636,428

8,204

1.99

%

1,701,012

9,336

2.18

%

Time deposits

1,134,417

10,071

3.52

%

1,198,279

10,835

3.59

%

1,160,527

11,621

3.98

%

Total Deposits

4,265,996

21,230

1.97

%

4,543,153

25,726

2.25

%

4,578,137

27,818

2.42

%

Borrowings

150,304

1,452

3.83

%

601,889

5,535

3.65

%

1,130,301

10,138

3.57

%

Repurchase agreements

87,160

295

1.34

%

88,721

389

1.74

%

91,960

518

2.24

%

Subordinated notes

98,185

1,812

7.32

%

91,032

1,731

7.54

%

55,717

829

5.92

%

Junior subordinated debentures issued to capital trusts

57,655

1,023

7.04

%

57,602

1,069

7.36

%

57,443

920

6.37

%

Total interest bearing liabilities

4,659,300

25,812

2.20

%

5,382,397

34,450

2.54

%

5,913,558

40,223

2.71

%

Non-interest bearing liabilities

Demand deposits

1,137,639

1,120,719

1,099,574

Accrued interest payable and other liabilities

60,375

63,103

70,117

Stockholders' equity

679,821

731,657

755,340

Total average liabilities and stockholders' equity

$

6,537,135

$

7,297,876

$

7,838,589

Net FTE interest income (non-GAAP) (5)

$

64,531

$

59,983

$

55,197

Less FTE adjustments (4)

1,055

1,597

2,070

Net Interest Income

$

63,476

$

58,386

$

53,127

Net FTE interest margin (Non-GAAP) (4)(5)

4.29

%

3.52

%

2.97

%

(1)Securities balances represent daily average balances for the fair value of securities. The average rate is calculated based on the daily average balance for the amortized cost of securities.

(2)Includes fees on loans held for sale and held for investment. The inclusion of loan fees does not have a material effect on the average interest rate.

(3)Non-accruing loans for the purpose of the computation above are included in the daily average loan amounts outstanding. Loan totals are shown net of unearned income and deferred loan fees.

(4)Management believes fully taxable equivalent, or FTE, interest income is useful to investors in evaluating the Company's performance as a comparison of the returns between a tax-free investment and a taxable alternative. The Company adjusts interest income and average rates for tax-exempt loans and securities to an FTE basis utilizing a 21% tax rate.

(5)Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

(6)Includes dividend income on Federal Home Loan Bank stock

Credit Quality

(Dollars in Thousands Except Ratios, Unaudited)

Quarter Ended

December 31,

September 30,

June 30,

March 31,

December 31,

% Change

2025

2025

2025

2025

2024

Q4'25 vs Q3'25

Q4'25 vs Q4'24

Non-accrual loans

Commercial

$

14,549

$

12,303

$

7,547

$

8,172

$

5,658

18

%

157

%

Residential Real estate

10,087

9,256

9,525

12,763

11,215

9

%

(10

)%

Mortgage warehouse

—

—

—

—

—

—

%

—

%

Consumer

7,821

7,799

7,222

7,875

8,919

—

%

(12

)%

Total non-accrual loans

32,457

29,358

24,294

28,810

25,792

11

%

26

%

90 days and greater delinquent - accruing interest

2,489

1,608

2,113

1,582

1,166

55

%

113

%

Total non-performing loans

$

34,946

$

30,966

$

26,407

$

30,392

$

26,958

13

%

30

%

Other real estate owned

Commercial

$

539

$

272

$

176

$

360

$

407

98

%

32

%

Residential Real estate

672

769

463

641

—

(13

)%

—

%

Mortgage warehouse

—

—

—

—

—

—

%

—

%

Consumer

480

480

480

34

17

—

%

2701

%

Total other real estate owned

1,691

1,521

1,119

1,035

424

11

%

299

%

Other non-performing assets(1)

$

3,991

$

3,228

$

2,937

$

—

$

—

24

%

—

%

Total non-performing assets

$

40,628

$

35,715

$

30,463

$

31,427

$

27,382

14

%

48

%

Loan data:

Accruing 30 to 89 days past due loans

$

24,580

$

24,784

$

31,401

$

19,034

$

23,075

(1

)%

7

%

Substandard loans

59,365

63,236

64,100

66,714

64,535

(6

)%

(8

)%

Net charge-offs (recoveries)

Commercial

$

436

$

294

$

84

$

(47

)

$

(32

)

48

%

(1462

)%

Residential Real estate

(25

)

19

52

(47

)

(10

)

(231

)%

149

%

Mortgage warehouse

—

—

—

—

—

—

%

—

%

Consumer

559

518

118

963

668

8

%

(16

)%

Total net charge-offs

$

970

$

831

$

254

$

869

$

626

17

%

55

%

Allowance for credit losses

Commercial

$

35,473

$

34,390

$

34,413

$

32,640

$

30,953

3

%

15

%

Residential Real estate

3,183

3,082

3,229

3,167

2,715

3

%

17

%

Mortgage warehouse

—

—

—

—

—

—

%

—

%

Consumer

12,643

12,706

16,757

16,847

18,312

—

%

(31

)%

Total allowance for credit losses

$

51,299

$

50,178

$

54,399

$

52,654

$

51,980

2

%

(1

)%

Credit quality ratios

Non-accrual loans to HFI loans

0.67

%

0.61

%

0.49

%

0.59

%

0.53

%

Non-performing assets to total assets

0.63

%

0.53

%

0.40

%

0.41

%

0.35

%

Annualized net charge-offs of average total loans

0.08

%

0.07

%

0.02

%

0.07

%

0.05

%

Allowance for credit losses to HFI loans

1.05

%

1.04

%

1.09

%

1.07

%

1.07

%

(1)Other non-performing assets consist of a single available for sale debt security placed on non-accrual status.

Non–GAAP Reconciliation of Net Fully-Taxable Equivalent ("FTE") Interest Margin

(Dollars in Thousands, Unaudited)

Three Months Ended

December 31,

September 30,

June 30,

March 31,

December 31,

2025

2025

2025

2025

2024

Interest income (GAAP)

(A)

$

89,288

$

92,836

$

91,477

$

89,175

$

93,350

Taxable-equivalent adjustment:

Investment securities - tax exempt (1)

665

1,218

1,619

1,646

1,675

Loan receivable (2)

390

379

382

383

395

Interest income (non-GAAP)

(B)

90,343

94,433

93,478

91,204

95,420

Interest expense (GAAP)

(C)

25,812

34,450

36,122

36,908

40,223

Net interest income (GAAP)

(D) =(A) - (C)

$

63,476

$

58,386

$

55,355

$

52,267

$

53,127

Net FTE interest income (non-GAAP)

(E) = (B) - (C)

$

64,531

$

59,983

$

57,356

$

54,296

$

55,197

Average interest earning assets

(F)

5,967,328

6,766,742

7,125,467

7,234,724

7,396,178

Net FTE interest margin (non-GAAP)

(G) = (E*) / (F)

4.29

%

3.52

%

3.23

%

3.04

%

2.97

%

(1)The following represents municipal securities interest income for investment securities classified as available-for-sale and held-to-maturity

(2)The following represents municipal loan interest income for loan receivables classified as held for sale and held for investment

*Annualized

Non–GAAP Reconciliation of Return on Average Tangible Common Equity

(Dollars in Thousands, Unaudited)

Three Months Ended

December 31,

September 30,

June 30,

March 31,

December 31,

2025

2025

2025

2025

2024

Net income (loss) (GAAP)

(A)

$

26,921

$

(221,990

)

$

20,644

$

23,941

$

(10,882

)

Average stockholders' equity

(B)

$

679,821

$

731,657

$

789,535

$

780,269

$

755,340

Average intangible assets

(C)

162,838

163,552

164,320

165,138

165,973

Average tangible equity (Non-GAAP)

(D) = (B) - (C)

$

516,983

$

568,105

$

625,215

$

615,131

$

589,367

Return on average tangible common equity ("ROACE") (non-GAAP)

(E) = (A*) / (D)

20.66

%

(155.03

)%

13.24

%

15.48

%

(7.35

)%

*Annualized

Non–GAAP Reconciliation of Tangible Common Equity to Tangible Assets

(Dollars in Thousands, Unaudited)

Three Months Ended

December 31,

September 30,

June 30,

March 31,

December 31,

2025

2025

2025

2025

2024

Total stockholders' equity (GAAP)

(A)

$

688,251

$

660,771

$

790,852

$

776,061

$

763,582

Intangible assets (end of period)

(B)

162,391

163,097

163,803

164,618

165,434

Total tangible common equity (non-GAAP)

(C) = (A) - (B)

$

525,860

$

497,674

$

627,049

$

611,443

$

598,148

Total assets (GAAP)

(D)

$

6,436,611

$

6,712,497

$

7,652,051

$

7,628,636

$

7,801,146

Intangible assets (end of period)

(B)

162,391

163,097

163,803

164,618

165,434

Total tangible assets (non-GAAP)

(E) = (D) - (B)

$

6,274,220

$

6,549,400

$

7,488,248

$

7,464,018

$

7,635,712

Tangible common equity to tangible assets (Non-GAAP)

(G) = (C) / (E)

8.38

%

7.60

%

8.37

%

8.19

%

7.83

%

Non–GAAP Reconciliation of Tangible Book Value Per Share

(Dollars in Thousands, Unaudited)

Three Months Ended

December 31,

September 30,

June 30,

March 31,

December 31,

2025

2025

2025

2025

2024

Total stockholders' equity (GAAP)

(A)

$

688,251

$

660,771

$

790,852

$

776,061

$

763,582

Intangible assets (end of period)

(B)

162,391

163,097

163,803

164,618

165,434

Total tangible common equity (non-GAAP)

(C) = (A) - (B)

$

525,860

$

497,674

$

627,049

$

611,443

$

598,148

Common shares outstanding

(D)

50,978,030

50,971,000

43,801,507

43,786,000

43,722,086

Tangible book value per common share (non-GAAP)

(E) = (C) / (D)

$

10.32

$

9.76

$

14.32

$

13.96

$

13.68

Contact:

John R. Stewart, CFA

EVP, Chief Financial Officer

Phone:

(219) 814–5833

Fax:

(219) 874–9280