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Horizon Bancorp, Inc. Reports First Quarter 2025 Results

1. HBNC reports net income of $23.9 million for Q1 2025. 2. Net interest margin expanded to 3.04%, marking six consecutive quarters of growth. 3. Total loans increased by 5%, driven by organic commercial loan growth. 4. Non-performing assets increased by 15%, indicating potential credit risks ahead. 5. Efficient expense management led to a $5.6 million reduction in expenses.

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Improved earnings and margin expansion can boost investor confidence and stock prices. The historical trend shows similar quarterly earnings led to stock price increases.

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Strong earnings and improved metrics suggest positive future performance, making this highly relevant to investors.

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MICHIGAN CITY, Ind., April 23, 2025 (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 March 31, 2025. “Horizon’s first quarter earnings displayed continued positive momentum in our core financial metrics and management’s commitment to deliver long term value to its shareholders. Our results were highlighted by a sixth consecutive quarter of margin expansion, now above 3%, strong loan growth with exceptional credit metrics and a core funding base that continues to deliver value, even in an uncertain economic environment. The team also delivered a more efficient expense base entering 2025 and added optionality to our capital position through the successful sale of our mortgage warehouse business", President and CEO, Thomas Prame stated. “We are pleased with our first quarter results and the positive momentum across our community banking model. The core franchise remains strong and our investments in expanding our local relationship banking model is paying dividends". Net income for the three months ended March 31, 2025 was $23.9 million, or $0.54 per diluted share, compared to net loss of $10.9 million, or $0.25, for the fourth quarter of 2024 and compared to $14.0 million, or $0.32 per diluted share, for the first quarter of 2024. First Quarter 2025 Highlights Net interest margin, on a fully taxable equivalent ("FTE") basis1, expanded for the sixth consecutive quarter, to 3.04% compared with 2.97% for the three months ended December 31, 2024 and 2.50% for the three months ended March 31, 2024. Total loans held for investment ("HFI") increased 5% linked quarter annualized, with strong organic commercial loan growth of $103.3 million, or 14% annualized. This growth was partially funded by the continued strategic runoff of lowering yielding indirect auto loans of approximately $36 million. Core deposits continued to be stable, with non-interest-bearing balances growing $62.5 million during the period, or 24% annualized. Credit quality remained strong, with annualized net charge offs of 0.07% of average loans during the first quarter. Non-performing assets remain well within expected ranges, with no material change from the prior quarter. On January 17, 2025, the Company completed the sale of its mortgage warehouse business to an unrelated third party, resulting in a pre-tax gain of $7.0 million. Expenses were down $5.6 million from the fourth quarter of 2024, reflecting management's commitment to creating a more efficient expense base in 2025. _________________________________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 March 31, December 31, September 30, June 30, March 31, 2025 2024 2024 2024 2024Income statement:         Net interest income$52,267  $53,127  $46,910  $45,279  $43,288 Credit loss expense 1,376   1,171   1,044   2,369   805 Non-interest income (loss) 16,499   (28,954)  11,511   10,485   9,929 Non-interest expense 39,306   44,935   39,272   37,522   37,107 Income tax expense (benefit) 4,141   (11,051)  (75)  1,733   1,314 Net income (loss)$23,943  $(10,882) $18,180  $14,140  $13,991           Per share data:         Basic earnings (loss) per share$0.55  $(0.25) $0.42  $0.32  $0.32 Diluted earnings (loss) per share 0.54   (0.25)  0.41   0.32   0.32 Cash dividends declared per common share 0.16   0.16   0.16   0.16   0.16 Book value per common share 17.72   17.46   17.27   16.62   16.49 Market value - High 17.76   18.76   16.57   12.74   14.44 Market value - Low 15.00   14.57   11.89   11.29   11.75 Weighted average shares outstanding - Basic 43,777,109   43,721,211   43,712,059   43,712,059   43,663,610 Weighted average shares outstanding - Diluted 43,954,164   43,721,211   44,112,321   43,987,187   43,874,036 Common shares outstanding (end of period) 43,785,932   43,722,086   43,712,059   43,712,059   43,726,380           Key ratios:         Return on average assets 1.25% (0.55)%  0.92%  0.73%  0.72%Return on average stockholders' equity 12.44   (5.73)  9.80   7.83   7.76 Total equity to total assets 10.18   9.79   9.52   9.18   9.18 Total loans to deposit ratio 85.21   87.75   83.92   85.70   82.78 Allowance for credit losses to HFI loans 1.07   1.07   1.10   1.08   1.09 Annualized net charge-offs of average total loans(1) 0.07   0.05   0.03   0.05   0.04 Efficiency ratio 57.16   185.89   67.22   67.29   69.73           Key metrics (Non-GAAP)(2) :         Net FTE interest margin 3.04%  2.97%  2.66%  2.64%  2.50%Return on average tangible common equity 15.79   (7.35)  12.65   10.18   10.11 Tangible common equity to tangible assets 8.20   7.83   7.58   7.22   7.20 Tangible book value per common share$13.96  $13.68  $13.46  $12.80  $12.65                     (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 $52.3 million in the first quarter of 2025, compared to $53.1 million in the fourth quarter of 2024. Continued expansion of the Company's net FTE interest margin was offset by a decline in average interest earning asset balances and two fewer days when compared with the prior quarter. Horizon’s net FTE interest margin2 was 3.04% for the first quarter of 2025, compared to 2.97% for the fourth quarter of 2024, attributable to the favorable mix shift in average interest earning assets toward higher-yielding loans and in the average funding mix toward deposit balances, in addition to continued disciplined pricing strategies on both sides of the balance sheet. Additionally, as previously noted, the fourth quarter net FTE interest margin included approximately five basis points related to interest recoveries on specific commercial loans that did not recur. Provision for Credit Losses During the first quarter of 2025, the Company recorded a provision for credit losses of $1.4 million. This compares to a provision for credit losses of $1.2 million during the fourth quarter of 2024, and $0.8 million during the first quarter of 2024. The increase in the provision for credit losses during the first quarter of 2025 when compared with the fourth quarter of 2024 was primarily attributable to increased net growth in commercial loans HFI and changes in economic factors, partially offset by the reduction of specific reserves and the reserves for unfunded commitments in the current quarter. For the first quarter of 2025, the allowance for credit losses included net charge-offs of $0.9 million, or an annualized 0.07% of average loans outstanding, compared to net charge-offs of $0.6 million, or an annualized 0.05% of average loans outstanding for the fourth quarter of 2024, and net charge-offs of $0.3 million, or an annualized 0.04% of average loans outstanding, in the first quarter of 2024. The Company’s allowance for credit losses as a percentage of period-end loans HFI was 1.07% at March 31, 2025, compared to 1.07% at December 31, 2024 and 1.09% at March 31, 2024. Non-Interest Income For the Quarter EndedMarch 31, December 31, September 30, June 30, March 31,(Dollars in Thousands)2025 2024 2024 2024 2024Non-interest Income         Service charges on deposit accounts$3,208  $3,276  $3,320  $3,130  $3,214 Wire transfer fees 71   124   123   113   101 Interchange fees 3,241   3,353   3,511   3,826   3,109 Fiduciary activities 1,326   1,313   1,394   1,372   1,315 Loss on sale of investment securities (407)  (39,140)  —   —   — Gain on sale of mortgage loans 1,076   1,071   1,622   896   626 Mortgage servicing income net of impairment 385   376   412   450   439 Increase in cash value of bank owned life insurance 335   335   349   318   298 Other income 7,264   338   780   380   827 Total non-interest income (loss)$16,499  $(28,954) $11,511  $10,485  $9,929                      Total non-interest income was $16.5 million in the first quarter of 2025, compared to non-interest loss of $29.0 million in the fourth quarter of 2024. The increase in non-interest income of $45.5 million is primarily due to a pre-tax loss on sale of investment securities of $39.1 million from the completion of the repositioning of $332.2 million of available-for-sale securities during the fourth quarter of 2024, compared to a loss on the sale of investment securities of $0.4 million in the first quarter of 2025. In addition, the Company completed the sale of its mortgage warehouse business to an unrelated third party in the current period, resulting in a pre-tax gain of $7.0 million. _________________________________1 Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure. Non-Interest Expense For the Quarter EndedMarch 31, December 31, September 30, June 30, March 31,(Dollars in Thousands)2025 2024 2024 2024 2024Non-interest Expense         Salaries and employee benefits$22,414  $25,564  $21,829  $20,583  $20,268 Net occupancy expenses 3,702   3,431   3,207   3,192   3,546 Data processing 2,872   2,841   2,977   2,579   2,464 Professional fees 826   736   676   714   607 Outside services and consultants 3,265   4,470   3,677   3,058   3,359 Loan expense 689   1,285   1,034   1,038   719 FDIC insurance expense 1,288   1,193   1,204   1,315   1,320 Core deposit intangible amortization 816   843   844   844   872 Merger related expenses 305   —   —   —   — Other losses 228   371   297   515   16 Other expense 2,901   4,201   3,527   3,684   3,936 Total non-interest expense$39,306  $44,935  $39,272  $37,522  $37,107                      Total non-interest expense was $39.3 million in the first quarter of 2025, compared with $44.9 million in the fourth quarter of 2024. The current period included $0.3 million of direct expenses related to the sale of the mortgage warehouse business. The decrease in non-interest expense during the first quarter of 2025 when compared with the prior period was primarily driven by a $3.2 million decrease in salaries and employee benefits expense, which is attributable to expenses incurred in the fourth quarter of 2024 related to the termination of legacy compensation and benefits programs that did not recur in the current period, and lower incentive compensation expense. Additionally, outside services and consultants expense decreased by $1.2 million, partially attributable to expense related to specific corporate initiatives in the fourth quarter of 2024 that did not recur in the current period. Other expenses decreased $1.3 million, partially attributable to a decrease in marketing expense. Income Taxes Horizon recorded a net tax expense of $4.1 million for the first quarter of 2025, representing an effective tax rate of 14.8%. Net tax expense in the fourth quarter of 2024 was impacted by the realized securities loss and the reversal of the $5.2 million tax valuation allowance. Balance Sheet Highlights Total assets decreased by $175.5 million, or 2.2%, to $7.6 billion as of March 31, 2025, from $7.8 billion as of December 31, 2024. The decrease in total assets is primarily due to the sale of the mortgage warehouse portfolio and a decrease in interest-bearing cash related to the payoff of FHLB advances and deposit outflows. Total investment securities decreased by $26.1 million, or 1.2%, to $2.1 billion as of March 31, 2025. Total loans were $4.9 billion at March 31, 2025, a decrease of $1.6 million from December 31, 2024 balances. The decrease is primarily due to the sale of the mortgage warehouse business during the quarter, which was offset by continued organic commercial loan growth. Total deposits increased by $165.1 million, or 2.9%, to $5.8 billion as of March 31, 2025 when compared to balances as of December 31, 2024. Time deposits increased by $155.9 million, or 14.3% during the quarter, while non-interest bearing deposits grew by $62.5 million, or 5.9%. Total borrowings decreased by $330.1 million during the quarter, to $812.2 million as of March 31, 2025, due to the pay down of FHLB advances. Balances subject to repurchase agreements declined by $2.1 million, to $87.9 million. 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 March 31, 2025: For the Quarter EndedMarch 31, December 31, September 30, June 30, 2025* 2024 2024 2024Consolidated Capital Ratios       Total capital (to risk-weighted assets) 14.28%  13.91%  13.45%  13.41%Tier 1 capital (to risk-weighted assets) 12.35   12.00   11.63   11.59 Common equity tier 1 capital (to risk-weighted assets) 11.34   11.00   10.68   10.63 Tier 1 capital (to average assets) 9.25   8.88   9.02   9.02 *Preliminary estimate - may be subject to change      As of March 31, 2025, the ratio of total stockholders’ equity to total assets is 10.18%. Book value per common share was $17.72, increasing $0.26 during the first quarter of 2025. Tangible common equity3 totaled $611.4 million at March 31, 2025, and the ratio of tangible common equity to tangible assets1 was 8.20% at March 31, 2025, up from 7.83% at December 31, 2024. Tangible book value, which excludes intangible assets from total equity, per common share1 was $13.96, increasing $0.28 during the first quarter of 2025 behind the growth in retained earnings. Credit Quality As of March 31, 2025, total non-accrual loans increased by $3.0 million, or 12%, from December 31, 2024, to 0.59% of total loans HFI. Total non-performing assets increased $4.0 million, or 15%, to $31.4 million, compared to $27.4 million as of December 31, 2024. The ratio of non-performing assets to total assets increased to 0.41% compared to 0.35% as of December 31, 2024. As of March 31, 2025, net charge-offs increased by $0.2 million to $0.9 million, compared to $0.6 million as of December 31, 2024 and remain just 0.07% 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 first quarter financial results and operating performance. Participants may access the live conference call on April 24, 2025 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 May 2, 2025. The replay may be accessed by dialing 877-344-7529 from the United States, 855-669-9658 from Canada or 1–412–317-0088 from other international locations, and entering the access code 6313653. About Horizon Bancorp, Inc. Horizon Bancorp, Inc. (NASDAQ GS: HBNC) is the $8 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. We believe that this shows the impact of such events as acquisition-related purchase accounting adjustments and swap termination fees, among others we have identified in our reconciliations. 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 the purchase accounting impacts and one-time costs of acquisitions 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: effects on Horizon’s business resulting from new U.S. domestic or foreign governmental trade measures, including but not limited to tariffs, import and export controls, foreign exchange intervention accomplished to offset the effects of trade policy or in response to currency volatility, and other restrictions on free trade; uncertain conditions within the domestic and international macroeconomic environment, including trade policy, monetary and fiscal policy, 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; the aggregate effects of elevated inflation levels in recent years; 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, such as the Russia and Ukraine conflict and the Israel and Hamas conflict; 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 March 31, December 31, September 30, June 30, March 31, 2025 2024 2024 2024 2024Interest Income         Interest and fees on loans$74,457  $76,747  $75,488  $71,880  $66,954 Investment securities - taxable 6,039   6,814   8,133   7,986   7,362 Investment securities - tax-exempt 6,192   6,301   6,310   6,377   6,451 Other 2,487   3,488   957   738   4,497 Total interest income 89,175   93,350   90,888   86,981   85,264 Interest Expense         Deposits 25,601   27,818   30,787   28,447   27,990 Short and long-term borrowings 9,188   10,656   11,131   11,213   11,930 Subordinated notes 829   829   830   829   831 Junior subordinated debentures issued to capital trusts 1,290   920   1,230   1,213   1,225 Total interest expense 36,908   40,223   43,978   41,702   41,976 Net Interest Income 52,267   53,127   46,910   45,279   43,288 Provision for loan losses 1,376   1,171   1,044   2,369   805 Net Interest Income after Credit Loss Expense 50,891   51,956   45,866   42,910   42,483 Non-interest Income         Service charges on deposit accounts 3,208   3,276   3,320   3,130   3,214 Wire transfer fees 71   124   123   113   101 Interchange fees 3,241   3,353   3,511   3,826   3,109 Fiduciary activities 1,326   1,313   1,394   1,372   1,315 Loss on sale of investment securities (407)  (39,140)  —   —   — Gain on sale of mortgage loans 1,076   1,071   1,622   896   626 Mortgage servicing income net of impairment 385   376   412   450   439 Increase in cash value of bank owned life insurance 335   335   349   318   298 Other income 7,264   338   780   380   827 Total non-interest (loss) income 16,499   (28,954)  11,511   10,485   9,929 Non-interest Expense         Salaries and employee benefits 22,414   25,564   21,829   20,583   20,268 Net occupancy expenses 3,702   3,431   3,207   3,192   3,546 Data processing 2,872   2,841   2,977   2,579   2,464 Professional fees 826   736   676   714   607 Outside services and consultants 3,265   4,470   3,677   3,058   3,359 Loan expense 689   1,285   1,034   1,038   719 FDIC insurance expense 1,288   1,193   1,204   1,315   1,320 Core deposit intangible amortization 816   843   844   844   872 Merger related expenses 305   —   —   —   — Other losses 228   371   297   515   16 Other expense 2,901   4,201   3,527   3,684   3,936 Total non-interest expense 39,306   44,935   39,272   37,522   37,107 Income (Loss) Before Income Taxes 28,084   (21,933)  18,105   15,873   15,305 Income tax expense (benefit) 4,141   (11,051)  (75)  1,733   1,314 Net Income (Loss)$23,943  $(10,882) $18,180  $14,140  $13,991 Basic Earnings (Loss) Per Share$0.55  $(0.25) $0.42  $0.32  $0.32 Diluted Earnings (Loss) Per Share 0.54   (0.25)  0.41   0.32   0.32                       Condensed Consolidated Balance Sheet (Dollar in Thousands)   Three Months Ended for the Period March 31,2025 December 31,2024 September 30,2024 June 30,2024 March 31,2024Assets         Interest earning assets         Federal funds sold$—  $—  $113,912  $34,453  $161,704 Interest-bearing deposits in banks 80,023   201,131   12,107   4,957   9,178 Interest earning time deposits —   735   735   1,715   1,715 Federal Home Loan Bank stock 45,412   53,826   53,826   53,826   53,826 Investment securities, available for sale 231,431   233,677   541,170   527,054   535,319 Investment securities, held to maturity 1,843,851   1,867,690   1,888,379   1,904,281   1,925,725 Loans held for sale 3,253   67,597   2,069   2,440   922 Gross loans held for investment (HFI) 4,909,815   4,847,040   4,803,996   4,822,840   4,618,175 Total Interest earning assets 7,113,785   7,271,696   7,416,194   7,351,566   7,306,564 Non-interest earning assets         Allowance for credit losses (52,654)  (51,980)  (52,881)  (52,215)  (50,387)Cash and due from banks 89,643   92,300   108,815   106,691   100,206 Cash value of life insurance 37,409   37,450   37,115   36,773   36,455 Other assets 140,672   152,635   119,026   165,656   160,593 Goodwill 155,211   155,211   155,211   155,211   155,211 Other intangible assets 9,407   10,223   11,067   11,910   12,754 Premises and equipment, net 93,499   93,864   93,544   93,695   94,303 Interest receivable 38,663   39,747   39,366   43,240   40,008 Total non-interest earning assets 511,850   529,450   511,263   560,961   549,143 Total assets$7,625,635  $7,801,146  $7,927,457  $7,912,527  $7,855,707 Liabilities         Savings and money market deposits$3,393,371  $3,446,681  $3,420,827  $3,364,726  $3,350,673 Time deposits 1,245,088   1,089,153   1,220,653   1,178,389   1,136,121 Short and long-term borrowings 812,218   1,142,340   1,142,744   1,229,165   1,219,812 Repurchase agreements 87,851   89,912   122,399   128,169   139,309 Subordinated notes 55,772   55,738   55,703   55,668   55,634 Junior subordinated debentures issued to capital trusts 57,531   57,477   57,423   57,369   57,315 Total interest earning liabilities 5,651,831   5,881,301   6,019,749   6,013,486   5,958,864 Non-interest bearing deposits 1,127,324   1,064,818   1,085,535   1,087,040   1,093,076 Interest payable 11,441   11,137   11,400   11,240   7,853 Other liabilities 58,978   80,308   55,951   74,096   74,664 Total liabilities 6,849,574   7,037,564   7,172,635   7,185,862   7,134,457 Stockholders’ Equity         Preferred stock —   —   —   —   — Common stock —   —   —   —   — Additional paid-in capital 360,522   363,761   358,453   357,673   356,599 Retained earnings 452,945   436,122   454,050   442,977   435,927 Accumulated other comprehensive loss (37,406)  (36,301)  (57,681)  (73,985)  (71,276)Total stockholders’ equity 776,061   763,582   754,822   726,665   721,250 Total liabilities and stockholders’ equity$7,625,635  $7,801,146  $7,927,457  $7,912,527  $7,855,707                       Loans and Deposits     (Dollars in Thousands)     March 31, December 31, September 30, June 30, March 31, % Change 2025 2024 2024 2024 2024 Q1'25 vs Q4'24 Q1'25 vs Q1'24Loans:             Commercial real estate$2,262,910  $2,202,858  $2,105,459  $2,117,772  $1,984,723   3%  14%Commercial & Industrial 918,541   875,297   808,600   786,788   765,043   5%  20%Total commercial 3,181,451   3,078,155   2,914,059   2,904,560   2,749,766   3%  16%Residential Real estate 801,726   802,909   801,356   797,956   782,071   —%  3%Mortgage warehouse —   —   80,437   68,917   56,548   —%  (100)%Consumer 926,638   965,976   1,008,144   1,051,407   1,029,790   (4)%  (10)%Total loans held for investment 4,909,815   4,847,040   4,803,996   4,822,840   4,618,175   1%  6%Loans held for sale 3,253   67,597   2,069   2,440   922   (95)%  253%Total loans$4,913,068  $4,914,637  $4,806,065  $4,825,280  $4,619,097   —%  6%              Deposits:             Interest-bearing demand deposits$1,713,991  $1,767,983  $1,688,998  $1,653,508  $1,613,806   (3)%  6%Savings and money market deposits 1,679,380   1,678,697   1,731,830   1,711,218   1,736,866   —%  (3)%Time deposits 1,245,088   1,089,153   1,220,653   1,178,389   1,136,121   14%  10%Total Interest bearing deposits 4,638,459   4,535,833   4,641,481   4,543,115   4,486,793   2%  3%Non-interest bearing deposits             Non-interest bearing deposits 1,127,324   1,064,819   1,085,534   1,087,040   1,093,077   6%  3%Total deposits$5,765,783  $5,600,652  $5,727,015  $5,630,155  $5,579,870   3%  3%                              Average Balance Sheet (Dollars in Thousands, Unaudited) Three Months Ended March 31, 2025December 31, 2024March 31, 2024 AverageBalanceInterest(4)(6)AverageRate(4) AverageBalanceInterest(4)(6)AverageRate(4) AverageBalanceInterest(4)(6)AverageRate(4) AssetsInterest earning assets         Interest-bearing deposits in banks$223,148 $2,487  4.52%$290,693 $3,488  4.77%$331,083  4,497  5.46%Federal Home Loan Bank stock 51,769  1,012  7.93% 53,826  1,516  11.20% 37,949  784  8.31%Investment securities - taxable (1) 974,109  5,027  2.09% 1,079,377  5,298  1.95% 1,326,246  6,578  1.99%Investment securities - non-taxable (1) 1,120,249  7,838  2.84% 1,129,622  7,976  2.81% 1,149,957  8,166  2.86%Total investment securities 2,094,358  12,865  2.49% 2,208,999  13,274  2.39% 2,476,203  14,744  2.39%Loans receivable (2) (3) 4,865,449  74,840  6.24% 4,842,660  77,142  6.34% 4,448,324  67,307  6.09%Total interest earning assets 7,234,724  91,204  5.11% 7,396,178  95,420  5.13% 7,293,559  87,332  4.82%Non-interest earning assets         Cash and due from banks 88,624    85,776    105,795   Allowance for credit losses (51,863)   (52,697)   (49,960)  Other assets 483,765    409,332    486,652   Total average assets$7,755,250   $7,838,589   $7,836,046             Liabilities and Stockholders' EquityInterest bearing liabilities         Interest-bearing demand deposits$1,750,446 $6,491  1.50%$1,716,598 $6,861  1.59%$1,658,709 $6,516  1.58%Savings and money market deposits 1,674,590  8,263  2.00% 1,701,012  9,336  2.18% 1,664,518  9,373  2.26%Time deposits 1,212,386  10,847  3.63% 1,160,527  11,621  3.98% 1,176,921  12,101  4.14%Total interest bearing deposits 4,637,422  25,601  2.24% 4,578,137  27,818  2.42% 4,500,148  27,990  2.50%Borrowings 971,496  8,772  3.66% 1,130,301  10,138  3.57% 1,200,728  10,904  3.65%Repurchase agreements 88,469  416  1.91% 91,960  518  2.24% 138,052  1,026  2.99%Subordinated notes 55,750  829  6.03% 55,717  829  5.92% 55,558  831  6.02%Junior subordinated debentures issued to capital trusts 57,497  1,290  9.10% 57,443  920  6.37% 57,279  1,225  8.60%Total interest bearing liabilities 5,810,634  36,908  2.58% 5,913,558  40,223  2.71% 5,951,765  41,976  2.84%Non-interest bearing liabilitiesDemand deposits 1,085,826    1,099,574    1,077,183   Accrued interest payable and other liabilities 78,521    70,117    82,015   Stockholders' equity 780,269    755,340    725,083   Total average liabilities and stockholders' equity$7,755,250   $7,838,589   $7,836,046   Net FTE interest income (non-GAAP) (5) $54,296   $55,197   $45,356  Less FTE adjustments (4)  2,029    2,070    2,068  Net Interest Income $52,267   $53,127   $43,288  Net FTE interest margin (Non-GAAP) (4)(5)   3.04%   2.97%   2.50% (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)     Quarter Ended     March 31, December 31, September 30, June 30, March 31, % Change 2025 2024 2024 2024 2024 1Q25 vs 4Q24 1Q25 vs 1Q24Non-accrual loans             Commercial$8,172  $5,658  $6,830  $4,321  $5,493   44%  49%Residential Real estate 12,763   11,215   9,529   8,489   8,725   14%  46%Mortgage warehouse —   —   —   —   —   —%  —%Consumer 7,875   8,919   7,208   5,453   4,835  (12)%  63%Total non-accrual loans 28,810   25,792   23,567   18,263   19,053   12%  22%90 days and greater delinquent - accruing interest 1,582   1,166   819   1,039   108   36%  1365%Total non-performing loans$30,392  $26,958  $24,386  $19,302  $19,161   13%  59%              Other real estate owned             Commercial 360   407   1,158   1,111   1,124  (12)% (68)%Residential Real estate 641   —   —   —   —   —%  —%Mortgage warehouse —   —   —   —   —   —%  —%Consumer 34   17   36   57   50   98% (32)%Total other real estate owned 1,035   424   1,194   1,168   1,174   144% (12)%              Total non-performing assets$31,427  $27,382  $25,580  $20,470  $20,335   14.8%  55%              Loan data:             Accruing 30 to 89 days past due loans$19,034  $23,075  $18,087  $19,785  $15,154  (18)%  26%Substandard loans 66,714   64,535   59,775   51,221   47,469   3%  41%Net charge-offs (recoveries)             Commercial$(47) $(32) $(52) $57  $(171) (47)%  73%Residential Real estate (47)  (10)  (9)  (4)  (5) (370)% (840)%Mortgage warehouse —   —   —   —   —   —%  —%Consumer 963   668   439   534   488   44%  97%Total net charge-offs$869  $626  $378  $587  $312   39%  179%              Allowance for credit losses             Commercial$32,640  $30,953  $32,854  $31,941  $30,514   5%  7%Residential Real estate 3,167   2,715   2,675   2,588   2,655   17%  19%Mortgage warehouse —   —   862   736   659   —% (100)%Consumer 16,847   18,312   16,490   16,950   16,559  (8)%  2%Total allowance for credit losses$52,654  $51,980  $52,881  $52,215  $50,387   1%  4%              Credit quality ratios             Non-accrual loans to HFI loans 0.59%  0.53%  0.49%  0.38%  0.41%    Non-performing assets to total assets 0.41%  0.35%  0.32%  0.26%  0.26%    Annualized net charge-offs of average total loans 0.07%  0.05%  0.03%  0.05%  0.04%    Allowance for credit losses to HFI loans 1.07%  1.07%  1.10%  1.08%  1.09%                             Non–GAAP Reconciliation of Net Fully-Taxable Equivalent ("FTE") Interest Margin(Dollars in Thousands, Unaudited)  Three Months Ended  March 31, December 31, September 30, June 30, March 31,  2025 2024 2024 2024 2024Interest income (GAAP)(A)$89,175  $93,350  $90,888  $86,981  $85,264 Taxable-equivalent adjustment:          Investment securities - tax exempt (1)  1,646   1,675   1,677   1,695   1,715 Loan receivable (2)  383   395   340   328   353 Interest income (non-GAAP)(B) 91,204   95,420   92,905   89,004   87,332 Interest expense (GAAP)(C) 36,908   40,223   43,978   41,702   41,976 Net interest income (GAAP)(D) =(A) - (C)$52,267  $53,127  $46,910  $45,279  $43,288 Net FTE interest income (non-GAAP)(E) = (B) - (C)$54,296  $55,197  $48,927  $47,302  $45,356 Average interest earning assets(F) 7,234,724   7,396,178   7,330,263   7,212,788   7,293,559 Net FTE interest margin (non-GAAP)(G) = (E*) / (F) 3.04%  2.97%  2.66%  2.64%  2.50%           (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  March 31, December 31, September 30, June 30, March 31,  2025 2024 2024 2024 2024           Net income (loss) (GAAP)(A)$23,943  $(10,882) $18,180  $14,140  $13,991            Average stockholders' equity(B)$780,269  $755,340  $738,372  $726,332  $725,083 Average intangible assets(C) 165,138   165,973   166,819   167,659   168,519 Average tangible equity (Non-GAAP)(D) = (B) - (C)$615,131  $589,367  $571,553  $558,673  $556,564 Return on average tangible common equity ("ROACE") (non-GAAP)(E) = (A*) / (D) 15.79% (7.35)%  12.65%  10.18%  10.11%*Annualized                      Non–GAAP Reconciliation of Tangible Common Equity to Tangible Assets(Dollars in Thousands, Unaudited)  Three Months Ended  March 31, December 31, September 30, June 30, March 31,  2025 2024 2024 2024 2024Total stockholders' equity (GAAP)(A)$776,061  $763,582  $754,822  $726,665  $721,250 Intangible assets (end of period)(B) 164,618   165,434   166,278   167,121   167,965 Total tangible common equity (non-GAAP)(C) = (A) - (B)$611,443  $598,148  $588,544  $559,544  $553,285            Total assets (GAAP)(D)$7,625,635  $7,801,146  $7,927,457  $7,912,527  $7,855,707 Intangible assets (end of period)(B) 164,618   165,434   166,278   167,121   167,965 Total tangible assets (non-GAAP)(E) = (D) - (B)$7,461,017  $7,635,712  $7,761,179  $7,745,406  $7,687,742            Tangible common equity to tangible assets (Non-GAAP)(G) = (C) / (E) 8.20%  7.83%  7.58%  7.22%  7.20%                      Non–GAAP Reconciliation of Tangible Book Value Per Share(Dollars in Thousands, Unaudited)  Three Months Ended  March 31, December 31, September 30, June 30, March 31,  2025 2024 2024 2024 2024Total stockholders' equity (GAAP)(A)$776,061  $763,582  $754,822  $726,665  $721,250 Intangible assets (end of period)(B) 164,618   165,434   166,278   167,121   167,965 Total tangible common equity (non-GAAP)(C) = (A) - (B)$611,443  $598,148  $588,544  $559,544  $553,285 Common shares outstanding(D) 43,785,932   43,722,086   43,712,059   43,712,059   43,726,380            Tangible book value per common share (non-GAAP)(E) = (C) / (D)$13.96  $13.68  $13.46  $12.80  $12.65                       Contact:John R. Stewart, CFA EVP, Chief Financial OfficerPhone:(219) 814–5833Fax:(219) 874–9280Date:April 23, 2025

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