- Earnings per diluted share of
$0.73 ;$0.80 on an adjusted(1) basis is highest in Company history - Return on average assets of 1.37%; 1.50% on an adjusted(1) basis
- Net interest margin on FTE basis(1) of 3.98%
- Loan growth of
$240 million , or 7.1% on an annualized basis - Net charge-offs 0.20% of total loans
- ROTCE of 18.0%; 19.7% on adjusted(1) basis
- Board of Directors approved quarterly dividend increase to
$0.26 to be paid in 3Q26 - Agreement to acquire
Finward Bancorp , the holding company forPeoples Bank , in all stock transaction
Second Quarter Financial Results
For the three months ended
Return on average assets for the second quarter of 2026 was 1.37% while return on average tangible common equity was 17.95%(1). These compare to return on average assets of 1.34% and return on average tangible common equity of 17.78%(1) in the first quarter of 2026.
Second quarter 2026 highlights include:
- Robust net interest margin of 3.96%, or 3.98% on a fully tax-equivalent basis(1)
- 1 bp decline from first quarter driven by a 7 bp decline in asset yields, which was partially offset by a 6 bp decrease in funding costs
- Decline in loan accretion diluted net interest margin 5 bps; accretion decline primarily related to lower-than-expected prepayment rates on acquired mortgage loans
- Noninterest income of
$73.8 million ;$71.9 million on an adjusted(1) basis- Adjustments include a
$0.3 million loss on securities and$2.2 million of acquisition-related adjustments - Leasing business income continues strong performance with a 5.3% increase from first quarter to
$22.8 million - Other noninterest income increased
$3.6 million , or 111.3%, from the linked quarter, due to higher income from bank owned life insurance and limited partnership investments - Foreign exchange income of
$13.1 million
- Adjustments include a
- Noninterest expenses of
$161.5 million , or$149.1 million as adjusted(1); 3.7% decrease from linked quarter- Adjustments(1) include
$11.6 million of acquisition related expenses and$0.8 million of amortization of tax credit investments and other expenses not expected to recur - Decrease from prior quarter driven by lower compensation costs
- Efficiency ratio of 61.2%; 56.8% as adjusted(1)
- Adjustments(1) include
- Strong loan growth during the quarter
- End of period loan balances increased
$240 million compared to the linked quarter - Quarterly growth was broad-based, highlighted by C&I, Summit and seasonal growth from Agile
- End of period loan balances increased
- Stable deposit balances during the quarter
- Total average deposit balances increased
$41 million , or 0.9% on an annualized basis - Growth in interest-bearing demand accounts and seasonal influx of public funds offset a decline in time deposits and brokered CDs
- Excluding brokered CD, average deposits increased
$168.6 million
- Total average deposit balances increased
- Total Allowance for Credit Losses of
$208.2 million ; Total quarterly provision expense of$8.2 million- Loans and leases - ACL of
$189.9 million - ACL to total loans of 1.38%; increased 2 bps from linked quarter
- Unfunded Commitments - ACL of
$18.3 million - Annualized net charge-offs were 20 bps of total loans; 15 bp decline from linked quarter
- Slight declines in classified and nonperforming assets
- Loans and leases - ACL of
- Capital ratios remain strong
- Total capital ratio increased 5 bps to 15.75%
- Tier 1 common equity increased 11 bps to 12.33%
- Tangible common equity of 8.24%(1); 9.30%(1) excluding impact from AOCI
- Tangible book value per share of
$16.64 (1); 3.0% increase from linked quarter
Additionally, the Board of Directors approved a quarterly dividend of
Full detail of the Company's second quarter 2026 performance is provided in the accompanying financial statements and slide presentation.
(1) Non-GAAP measure. For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled "Use of Non-GAAP Financial Measures" in this release and "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation. |
Finward Bancorp Acquisition
First Financial Bancorp . has agreed to acquireFinward Bancorp , the holding company forPeoples Bank , headquartered inMunster, Indiana - Strategically expands First Financial's presence in northwest
Indiana andChicago , with the addition of a low cost core deposit franchise and 24 locations - Finward has approximately
$2.0 billion in assets,$1.7 billion in deposits,$1.5 billion in loans and$412 million in assets under management - Transaction is expected to be approximately 5% accretive to First Financial's earnings per share
"The addition of
Upon completion of the transaction, Finward's consumer, trust/wealth management and commercial credit lines of business will be incorporated into First Financial's respective business lines, and
"This partnership represents an exciting next chapter for our organization and the communities we serve," said
Through this addition, First Financial continues its recent period of growth, including the recent acquisitions of
Transaction Terms
Under the terms of the agreement, each outstanding share of Finward common stock will be converted into the right to receive 1.35 shares of First Financial common stock, valuing the transaction at approximately
The transaction is expected to close in the fourth quarter of 2026, subject to satisfaction of customary closing conditions, regulatory approvals and approval of Finward's shareholders.
Transaction Advisors
Teleconference / Webcast Information
First Financial's executive management will host a conference call to discuss the Company's financial and operating results on
Press Release and Additional Information on Website
This press release as well as supplemental information are available to the public through the Investor Relations section of First Financial's website at www.bankatfirst.com.
Use of Non-GAAP Financial Measures
This earnings release contains GAAP financial measures and Non-GAAP financial measures where management believes it to be helpful in understanding the Company's results of operations or financial position. Where Non-GAAP financial measures are used, the comparable GAAP financial measures, as well as a reconciliation to the comparable GAAP financial measure, can be found in the section titled "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation.
Forward-Looking Statements
Certain statements in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder, which statements involve inherent risks and uncertainties. Examples of forward-looking statements include, but are not limited to, (a) statements regarding
Risks, uncertainties and assumptions regarding First Financial's operations
- economic, market, liquidity, credit, interest rate, operational and technological risks associated with First Financial's business;
- future credit quality and performance, including our expectations regarding future loan losses and our allowance for credit losses;
- the effect of and changes in policies and laws or regulatory agencies, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and other legislation and regulation relating to the banking industry;
- management's ability to effectively execute its business plans;
- pursuit of mergers and acquisitions, including costs or difficulties related to the acquisition and/or integration of any acquired companies;
- the possibility that any of the anticipated benefits of First Financial's prior or contemplated acquisitions will not be realized or will not be realized within the expected time period;
- the effect of changes in accounting policies and practices;
- changes in consumer spending, borrowing and saving and changes in unemployment;
- changes in customers' performance and creditworthiness;
- the costs and effects of litigation and of unexpected or adverse outcomes in such litigation;
- current and future economic and market conditions, including the effects of changes in housing prices, fluctuations in unemployment rates,
U.S . fiscal debt, budget and tax matters, geopolitical matters, trade and tariff policies, and any slowdown in global economic growth; - our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms;
- financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services;
- the effect of the current interest rate environment or changes in interest rates or in the level or composition of our assets or liabilities on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgage loans held for sale;
- the effect of a fall in stock market prices on our brokerage, asset and wealth management businesses;
- a failure in or breach of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber attacks;
- the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin; and
- our ability to develop and execute effective business plans and strategies.
Risks, uncertainties and assumptions regarding the proposed transaction
- the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the merger agreement;
- the failure to obtain necessary regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined First Financial or the expected benefits of the proposed transaction) and the possibility that the proposed transaction does not close when expected or at all because required regulatory approvals, the approval by Finward's shareholders, or other approvals and the other conditions to closing are not received or satisfied on a timely basis or at all;
- the outcome of any legal proceedings that may be instituted against First Financial or Finward;
- the possibility that the anticipated benefits of the proposed transaction, including anticipated synergies and strategic gains, are not realized when expected or at all, including as a result of changes in, or problems arising from, general economic and market conditions, interest and exchange rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which First Financial and Finward operate;
- the possibility that the integration of the two companies may be more difficult, time-consuming or costly than expected;
- the impact of purchase accounting with respect to the proposed transaction, or any change in the assumptions used regarding the assets acquired and liabilities assumed to determine their fair value and credit marks;
- the possibility that the proposed transaction may be more expensive or take longer to complete than anticipated, including as a result of unexpected factors or events;
- the diversion of management's attention from ongoing business operations and opportunities;
- potential adverse reactions of First Financial's or Finward's customers or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed transaction;
- a material adverse change in the financial condition of First Financial or Finward;
- changes in First Financial's share price before closing;
- risks relating to the potential dilutive effect of shares of First Financial's common stock to be issued in the proposed transaction;
- general competitive, economic, political and market conditions;
- the ability to retain key employees, management personnel and other associates of First Financial and Finward following announcement or consummation of the proposed transaction;
- major catastrophes such as earthquakes, floods or other natural or human disasters, including infectious disease outbreaks; and
- other factors that may affect future results of First Financial or Finward, including, among others, changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; changes in interest rates; deposit flows; inflation; customer borrowing, repayment, investment and deposit practices; the impact, extent and timing of technological changes; capital management activities; and other actions of the Federal Reserve Board, the
Ohio Division of Financial Institutions , theIndiana Department of Financial Institutions , and any other state or federal legislative and regulatory actions and reforms.
These factors are not necessarily all of the factors that could cause First Financial, Finward, or the combined company's actual results, performance or achievements to differ materially from those expressed in or implied by any of the forward-looking statements. Other factors, including unknown or unpredictable factors, also could harm the results of First Financial, Finward, or the combined company.
Although each of First Financial and Finward believes that its expectations with respect to forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual results of First Financial or Finward (as related to the proposed transaction) will not differ materially from any projected future results expressed or implied by such forward-looking statements. Additional factors that could cause results to differ materially from those described above can be found in each of First Financial's and Finward's most recent annual report on Form 10-K for the fiscal year ended
No Offer or Solicitation
This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities or the solicitation of any vote or approval with respect to the proposed transaction between First Financial and Finward. No offer of securities shall be made except by means of a prospectus meeting the requirements of the Securities Act of 1933, as amended, and no offer to sell or solicitation of an offer to buy shall be made in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
Important Additional Information about the Transaction and Where to Find It
In connection with the proposed transaction, First Financial intends to file with the
A copy of the Registration Statement, Proxy Statement/Prospectus, as well as other filings containing information about First Financial and Finward, may be obtained, free of charge, at the
Participants in Solicitation
Finward and its directors, executive officers, management and employees may be deemed to be participants in the solicitation of proxies in respect of the Merger. Information concerning Finward's participants is set forth in the Proxy Statement, dated
About
About Finward Bancorp
CONSOLIDATED FINANCIAL HIGHLIGHTS | |||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||
(Unaudited) | |||||||||||||
Three Months Ended, | Six months ended, | ||||||||||||
2026 | 2026 | 2025 | 2025 | 2025 | 2026 | 2025 | |||||||
RESULTS OF OPERATIONS | |||||||||||||
Net income | $ 76,456 | $ 74,445 | $ 62,393 | $ 71,923 | $ 69,996 | $ 150,901 | $ 121,289 | ||||||
Net earnings per share - basic | $ 0.74 | $ 0.72 | $ 0.65 | $ 0.76 | $ 0.74 | $ 1.45 | $ 1.28 | ||||||
Net earnings per share - diluted | $ 0.73 | $ 0.71 | $ 0.64 | $ 0.75 | $ 0.73 | $ 1.44 | $ 1.27 | ||||||
Dividends declared per share | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.24 | $ 0.50 | $ 0.48 | ||||||
KEY FINANCIAL RATIOS | |||||||||||||
Return on average assets | 1.37 % | 1.34 % | 1.22 % | 1.54 % | 1.52 % | 1.36 % | 1.33 % | ||||||
Return on average shareholders' equity | 10.39 % | 10.24 % | 9.18 % | 11.08 % | 11.16 % | 10.32 % | 9.83 % | ||||||
Return on average tangible shareholders' equity (1) | 17.95 % | 17.78 % | 16.27 % | 19.11 % | 19.61 % | 17.87 % | 17.44 % | ||||||
Net interest margin | 3.96 % | 3.97 % | 3.96 % | 3.99 % | 4.01 % | 3.96 % | 3.93 % | ||||||
Net interest margin (fully tax equivalent) (1)(2) | 3.98 % | 3.99 % | 3.98 % | 4.02 % | 4.05 % | 3.98 % | 3.96 % | ||||||
Ending shareholders' equity as a percent of ending assets | 13.31 % | 12.91 % | 13.11 % | 14.18 % | 13.73 % | 13.31 % | 13.73 % | ||||||
Ending tangible shareholders' equity as a percent of: | |||||||||||||
Ending tangible assets (1) | 8.24 % | 7.87 % | 7.79 % | 8.87 % | 8.40 % | 8.24 % | 8.40 % | ||||||
Risk-weighted assets (1) | 10.62 % | 10.51 % | 9.76 % | 10.94 % | 10.44 % | 10.62 % | 10.44 % | ||||||
Average shareholders' equity as a percent of average assets | 13.18 % | 13.12 % | 13.31 % | 13.87 % | 13.66 % | 13.15 % | 13.52 % | ||||||
Average tangible shareholders' equity as a percent of | 8.08 % | 8.01 % | 7.97 % | 8.54 % | 8.26 % | 8.04 % | 8.10 % | ||||||
Book value per share | $ 28.46 | $ 28.02 | $ 28.11 | $ 27.48 | $ 26.71 | $ 28.46 | $ 26.71 | ||||||
Tangible book value per share (1) | $ 16.64 | $ 16.15 | $ 15.74 | $ 16.19 | $ 15.40 | $ 16.64 | $ 15.40 | ||||||
Common equity tier 1 ratio (3) | 12.33 % | 12.22 % | 11.32 % | 12.91 % | 12.57 % | 12.33 % | 12.57 % | ||||||
Tier 1 ratio (3) | 12.61 % | 12.50 % | 11.60 % | 13.23 % | 12.89 % | 12.61 % | 12.89 % | ||||||
Total capital ratio (3) | 15.75 % | 15.70 % | 15.46 % | 15.32 % | 14.98 % | 15.75 % | 14.98 % | ||||||
Leverage ratio (3) | 9.66 % | 9.39 % | 9.53 % | 10.50 % | 10.28 % | 9.66 % | 10.28 % | ||||||
AVERAGE BALANCE SHEET ITEMS | |||||||||||||
Loans (4) | |||||||||||||
Investment securities | 5,079,730 | 4,769,261 | 3,988,846 | 3,552,014 | 3,478,921 | 4,925,353 | 3,445,443 | ||||||
Interest-bearing deposits with other banks | 605,647 | 596,094 | 647,347 | 610,074 | 542,815 | 600,897 | 579,112 | ||||||
Total earning assets | |||||||||||||
Total assets | |||||||||||||
Noninterest-bearing deposits | $ 3,811,391 | $ 3,745,002 | $ 3,436,709 | $ 3,124,277 | $ 3,143,081 | $ 3,778,380 | $ 3,117,203 | ||||||
Interest-bearing deposits | 13,875,384 | 13,900,550 | 12,521,948 | 11,387,648 | 11,211,694 | 13,887,898 | 11,180,835 | ||||||
Total deposits | |||||||||||||
Borrowings | $ 891,636 | $ 1,012,161 | $ 848,650 | $ 823,346 | $ 910,573 | $ 951,566 | $ 955,704 | ||||||
Shareholders' equity | $ 2,951,237 | $ 2,947,585 | $ 2,695,581 | $ 2,575,203 | $ 2,515,747 | $ 2,949,421 | $ 2,486,926 | ||||||
CREDIT QUALITY RATIOS | |||||||||||||
Allowance to ending loans | 1.38 % | 1.36 % | 1.39 % | 1.38 % | 1.34 % | 1.38 % | 1.34 % | ||||||
Allowance to nonaccrual loans | 197.51 % | 182.73 % | 183.18 % | 213.18 % | 206.08 % | 197.51 % | 206.08 % | ||||||
Nonaccrual loans to total loans | 0.70 % | 0.75 % | 0.76 % | 0.65 % | 0.65 % | 0.70 % | 0.65 % | ||||||
Nonperforming assets to ending loans, plus OREO | 0.70 % | 0.75 % | 0.76 % | 0.65 % | 0.65 % | 0.70 % | 0.65 % | ||||||
Nonperforming assets to total assets | 0.43 % | 0.44 % | 0.48 % | 0.41 % | 0.41 % | 0.43 % | 0.41 % | ||||||
Classified assets to total assets | 1.01 % | 1.02 % | 1.11 % | 1.18 % | 1.15 % | 1.01 % | 1.15 % | ||||||
Net charge-offs to average loans (annualized) | 0.20 % | 0.35 % | 0.27 % | 0.18 % | 0.21 % | 0.27 % | 0.28 % | ||||||
(1) Non-GAAP measure. For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled "Use of Non-GAAP Financial Measures" in this release and "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation. |
(2) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest margin and net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons. |
(3) |
(4) Includes loans held for sale. |
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||
(Dollars in thousands, except per share data) | |||||||||||
(Unaudited) | |||||||||||
Three months ended, | Six months ended, | ||||||||||
2026 | 2025 | % Change | 2026 | 2025 | % Change | ||||||
Interest income | |||||||||||
Loans and leases, including fees | $ 219,164 | $ 201,460 | 8.8 % | $ 444,115 | $ 398,623 | 11.4 % | |||||
Investment securities | |||||||||||
Taxable | 53,904 | 36,243 | 48.7 % | 103,395 | 70,644 | 46.4 % | |||||
Tax-exempt | 2,472 | 2,233 | 10.7 % | 4,998 | 4,437 | 12.6 % | |||||
Total investment securities interest | 56,376 | 38,476 | 46.5 % | 108,393 | 75,081 | 44.4 % | |||||
Other earning assets | 5,381 | 5,964 | (9.8) % | 10,831 | 12,615 | (14.1) % | |||||
Total interest income | 280,921 | 245,900 | 14.2 % | 563,339 | 486,319 | 15.8 % | |||||
Interest expense | |||||||||||
Deposits | 79,250 | 75,484 | 5.0 % | 158,985 | 154,125 | 3.2 % | |||||
Short-term borrowings | 4,997 | 6,393 | (21.8) % | 10,165 | 13,938 | (27.1) % | |||||
Long-term borrowings | 6,297 | 5,754 | 9.4 % | 14,202 | 10,691 | 32.8 % | |||||
Total interest expense | 90,544 | 87,631 | 3.3 % | 183,352 | 178,754 | 2.6 % | |||||
Net interest income | 190,377 | 158,269 | 20.3 % | 379,987 | 307,565 | 23.5 % | |||||
Provision for credit losses-loans and leases | 12,933 | 9,084 | 42.4 % | 18,963 | 18,225 | 4.0 % | |||||
Provision for credit losses-unfunded commitments | (4,743) | 718 | (760.6) % | (2,233) | 277 | (906.1) % | |||||
Net interest income after provision for credit losses | 182,187 | 148,467 | 22.7 % | 363,257 | 289,063 | 25.7 % | |||||
Noninterest income | |||||||||||
Service charges on deposit accounts | 8,896 | 7,766 | 14.6 % | 17,909 | 15,229 | 17.6 % | |||||
Wealth management fees | 8,252 | 7,787 | 6.0 % | 18,734 | 15,924 | 17.6 % | |||||
Bankcard income | 3,032 | 3,737 | (18.9) % | 6,612 | 7,047 | (6.2) % | |||||
Client derivative fees | 1,443 | 1,674 | (13.8) % | 5,453 | 3,245 | 68.0 % | |||||
Foreign exchange income | 13,101 | 13,760 | (4.8) % | 29,414 | 26,304 | 11.8 % | |||||
Leasing business income | 22,750 | 20,797 | 9.4 % | 44,358 | 39,500 | 12.3 % | |||||
Net gains from sales of loans | 6,658 | 6,687 | (0.4) % | 12,705 | 11,009 | 15.4 % | |||||
Net gain (loss) on investment securities | (337) | 243 | (238.7) % | (1,597) | (9,706) | (83.5) % | |||||
Gain on bargain purchase | 3,189 | 0 | 100.0 % | 12,081 | 0 | 100.0 % | |||||
Other | 6,807 | 5,612 | 21.3 % | 10,028 | 10,594 | (5.3) % | |||||
Total noninterest income | 73,791 | 68,063 | 8.4 % | 155,697 | 119,146 | 30.7 % | |||||
Noninterest expenses | |||||||||||
Salaries and employee benefits | 86,917 | 74,917 | 16.0 % | 186,773 | 150,155 | 24.4 % | |||||
Net occupancy | 7,535 | 5,845 | 28.9 % | 15,088 | 11,864 | 27.2 % | |||||
Furniture and equipment | 4,310 | 3,441 | 25.3 % | 9,003 | 7,254 | 24.1 % | |||||
Data processing | 13,554 | 9,020 | 50.3 % | 26,208 | 17,779 | 47.4 % | |||||
Marketing | 3,616 | 2,737 | 32.1 % | 6,268 | 4,755 | 31.8 % | |||||
Professional services | 7,387 | 3,549 | 108.1 % | 11,373 | 6,288 | 80.9 % | |||||
Amortization of tax credit investments | 669 | 111 | 502.7 % | 1,338 | 223 | 500.0 % | |||||
| 2,878 | 2,611 | 10.2 % | 6,523 | 5,670 | 15.0 % | |||||
Intangible amortization | 6,229 | 2,358 | 164.2 % | 12,490 | 4,717 | 164.8 % | |||||
Leasing business expense | 14,633 | 13,155 | 11.2 % | 28,762 | 25,957 | 10.8 % | |||||
Other | 13,814 | 10,927 | 26.4 % | 27,124 | 22,085 | 22.8 % | |||||
Total noninterest expenses | 161,542 | 128,671 | 25.5 % | 330,950 | 256,747 | 28.9 % | |||||
Income before income taxes | 94,436 | 87,859 | 7.5 % | 188,004 | 151,462 | 24.1 % | |||||
Income tax expense | 17,980 | 17,863 | 0.7 % | 37,103 | 30,173 | 23.0 % | |||||
Net income | $ 76,456 | $ 69,996 | 9.2 % | $ 150,901 | $ 121,289 | 24.4 % | |||||
ADDITIONAL DATA | |||||||||||
Net earnings per share - basic | $ 0.74 | $ 0.74 | $ 1.45 | $ 1.28 | |||||||
Net earnings per share - diluted | $ 0.73 | $ 0.73 | $ 1.44 | $ 1.27 | |||||||
Dividends declared per share | $ 0.25 | $ 0.24 | $ 0.50 | $ 0.48 | |||||||
Return on average assets | 1.37 % | 1.52 % | 1.36 % | 1.33 % | |||||||
Return on average shareholders' equity | 10.39 % | 11.16 % | 10.32 % | 9.83 % | |||||||
Interest income | $ 280,921 | $ 245,900 | 14.2 % | $ 563,339 | $ 486,319 | 15.8 % | |||||
Tax equivalent adjustment | 1,161 | 1,246 | (6.8) % | 2,347 | 2,459 | (4.6) % | |||||
Interest income - tax equivalent | 282,082 | 247,146 | 14.1 % | 565,686 | 488,778 | 15.7 % | |||||
Interest expense | 90,544 | 87,631 | 3.3 % | 183,352 | 178,754 | 2.6 % | |||||
Net interest income - tax equivalent | $ 191,538 | $ 159,515 | 20.1 % | $ 382,334 | $ 310,024 | 23.3 % | |||||
Net interest margin | 3.96 % | 4.01 % | 3.96 % | 3.93 % | |||||||
Net interest margin (fully tax equivalent) (1) | 3.98 % | 4.05 % | 3.98 % | 3.96 % | |||||||
Full-time equivalent employees | 2,371 | 2,033 | |||||||||
(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons. |
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME | |||||||
(Dollars in thousands, except per share data) | |||||||
(Unaudited) | |||||||
2026 | |||||||
Second | First | Year to | % Change | ||||
Quarter | Quarter | Date | Linked Qtr. | ||||
Interest income | |||||||
Loans and leases, including fees | $ 219,164 | $ 224,951 | $ 444,115 | (2.6) % | |||
Investment securities | |||||||
Taxable | 53,904 | 49,491 | 103,395 | 8.9 % | |||
Tax-exempt | 2,472 | 2,526 | 4,998 | (2.1) % | |||
Total investment securities interest | 56,376 | 52,017 | 108,393 | 8.4 % | |||
Other earning assets | 5,381 | 5,450 | 10,831 | (1.3) % | |||
Total interest income | 280,921 | 282,418 | 563,339 | (0.5) % | |||
Interest expense | |||||||
Deposits | 79,250 | 79,735 | 158,985 | (0.6) % | |||
Short-term borrowings | 4,997 | 5,168 | 10,165 | (3.3) % | |||
Long-term borrowings | 6,297 | 7,905 | 14,202 | (20.3) % | |||
Total interest expense | 90,544 | 92,808 | 183,352 | (2.4) % | |||
Net interest income | 190,377 | 189,610 | 379,987 | 0.4 % | |||
Provision for credit losses-loans and leases | 12,933 | 6,030 | 18,963 | 114.5 % | |||
Provision for credit losses-unfunded commitments | (4,743) | 2,510 | (2,233) | (289.0) % | |||
Net interest income after provision for credit losses | 182,187 | 181,070 | 363,257 | 0.6 % | |||
Noninterest income | |||||||
Service charges on deposit accounts | 8,896 | 9,013 | 17,909 | (1.3) % | |||
Wealth management fees | 8,252 | 10,482 | 18,734 | (21.3) % | |||
Bankcard income | 3,032 | 3,580 | 6,612 | (15.3) % | |||
Client derivative fees | 1,443 | 4,010 | 5,453 | (64.0) % | |||
Foreign exchange income | 13,101 | 16,313 | 29,414 | (19.7) % | |||
Leasing business income | 22,750 | 21,608 | 44,358 | 5.3 % | |||
Net gains from sales of loans | 6,658 | 6,047 | 12,705 | 10.1 % | |||
Net gain (loss) on investment securities | (337) | (1,260) | (1,597) | (73.3) % | |||
Gain on bargain purchase | 3,189 | 8,892 | 12,081 | (64.1) % | |||
Other | 6,807 | 3,221 | 10,028 | 111.3 % | |||
Total noninterest income | 73,791 | 81,906 | 155,697 | (9.9) % | |||
Noninterest expenses | |||||||
Salaries and employee benefits | 86,917 | 99,856 | 186,773 | (13.0) % | |||
Net occupancy | 7,535 | 7,553 | 15,088 | (0.2) % | |||
Furniture and equipment | 4,310 | 4,693 | 9,003 | (8.2) % | |||
Data processing | 13,554 | 12,654 | 26,208 | 7.1 % | |||
Marketing | 3,616 | 2,652 | 6,268 | 36.3 % | |||
Professional services | 7,387 | 3,986 | 11,373 | 85.3 % | |||
Amortization of tax credit investments | 669 | 669 | 1,338 | 0.0 % | |||
| 2,878 | 3,645 | 6,523 | (21.0) % | |||
Intangible amortization | 6,229 | 6,261 | 12,490 | (0.5) % | |||
Leasing business expense | 14,633 | 14,129 | 28,762 | 3.6 % | |||
Other | 13,814 | 13,310 | 27,124 | 3.8 % | |||
Total noninterest expenses | 161,542 | 169,408 | 330,950 | (4.6) % | |||
Income before income taxes | 94,436 | 93,568 | 188,004 | 0.9 % | |||
Income tax expense | 17,980 | 19,123 | 37,103 | (6.0) % | |||
Net income | $ 76,456 | $ 74,445 | $ 150,901 | 2.7 % | |||
ADDITIONAL DATA | |||||||
Net earnings per share - basic | $ 0.74 | $ 0.72 | $ 1.45 | ||||
Net earnings per share - diluted | $ 0.73 | $ 0.71 | $ 1.44 | ||||
Dividends declared per share | $ 0.25 | $ 0.25 | $ 0.50 | ||||
Return on average assets | 1.37 % | 1.34 % | 1.36 % | ||||
Return on average shareholders' equity | 10.39 % | 10.24 % | 10.32 % | ||||
Interest income | $ 280,921 | $ 282,418 | $ 563,339 | (0.5) % | |||
Tax equivalent adjustment | 1,161 | 1,186 | 2,347 | (2.1) % | |||
Interest income - tax equivalent | 282,082 | 283,604 | 565,686 | (0.5) % | |||
Interest expense | 90,544 | 92,808 | 183,352 | (2.4) % | |||
Net interest income - tax equivalent | $ 191,538 | $ 190,796 | $ 382,334 | 0.4 % | |||
Net interest margin | 3.96 % | 3.97 % | 3.96 % | ||||
Net interest margin (fully tax equivalent) (1) | 3.98 % | 3.99 % | 3.98 % | ||||
Full-time equivalent employees | 2,371 | 2,319 | |||||
(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons. |
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME | |||||||||
(Dollars in thousands, except per share data) | |||||||||
(Unaudited) | |||||||||
2025 | |||||||||
Fourth | Third | Second | First | Full | |||||
Quarter | Quarter | Quarter | Quarter | Year | |||||
Interest income | |||||||||
Loans and leases, including fees | $ 215,663 | $ 204,865 | $ 201,460 | $ 197,163 | $ 819,151 | ||||
Investment securities | |||||||||
Taxable | 40,971 | 36,421 | 36,243 | 34,401 | 148,036 | ||||
Tax-exempt | 2,363 | 2,195 | 2,233 | 2,204 | 8,995 | ||||
Total investment securities interest | 43,334 | 38,616 | 38,476 | 36,605 | 157,031 | ||||
Other earning assets | 6,334 | 6,773 | 5,964 | 6,651 | 25,722 | ||||
Total interest income | 265,331 | 250,254 | 245,900 | 240,419 | 1,001,904 | ||||
Interest expense | |||||||||
Deposits | 78,861 | 77,766 | 75,484 | 78,641 | 310,752 | ||||
Short-term borrowings | 4,925 | 5,979 | 6,393 | 7,545 | 24,842 | ||||
Long-term borrowings | 7,550 | 6,023 | 5,754 | 4,937 | 24,264 | ||||
Total interest expense | 91,336 | 89,768 | 87,631 | 91,123 | 359,858 | ||||
Net interest income | 173,995 | 160,486 | 158,269 | 149,296 | 642,046 | ||||
Provision for credit losses-loans and leases | 9,688 | 8,612 | 9,084 | 9,141 | 36,525 | ||||
Provision for credit losses-unfunded commitments | 412 | 453 | 718 | (441) | 1,142 | ||||
Net interest income after provision for credit losses | 163,895 | 151,421 | 148,467 | 140,596 | 604,379 | ||||
Noninterest income | |||||||||
Service charges on deposit accounts | 8,308 | 7,829 | 7,766 | 7,463 | 31,366 | ||||
Wealth management fees | 9,288 | 7,351 | 7,787 | 8,137 | 32,563 | ||||
Bankcard income | 3,590 | 3,589 | 3,737 | 3,310 | 14,226 | ||||
Client derivative fees | 2,681 | 1,876 | 1,674 | 1,571 | 7,802 | ||||
Foreign exchange income | 22,696 | 16,666 | 13,760 | 12,544 | 65,666 | ||||
Leasing business income | 19,523 | 20,997 | 20,797 | 18,703 | 80,020 | ||||
Net gains from sales of loans | 7,041 | 6,835 | 6,687 | 4,322 | 24,885 | ||||
Net gain (loss) on investment securities | (12,576) | (42) | 243 | (9,949) | (22,324) | ||||
Other | 4,216 | 8,424 | 5,612 | 4,982 | 23,234 | ||||
Total noninterest income | 64,767 | 73,525 | 68,063 | 51,083 | 257,438 | ||||
Noninterest expenses | |||||||||
Salaries and employee benefits | 85,123 | 80,607 | 74,917 | 75,238 | 315,885 | ||||
Net occupancy | 6,315 | 6,003 | 5,845 | 6,019 | 24,182 | ||||
Furniture and equipment | 3,940 | 3,582 | 3,441 | 3,813 | 14,776 | ||||
Data processing | 10,465 | 9,591 | 9,020 | 8,759 | 37,835 | ||||
Marketing | 3,056 | 2,359 | 2,737 | 2,018 | 10,170 | ||||
Professional services | 6,231 | 2,314 | 3,549 | 2,739 | 14,833 | ||||
Amortization of tax credit investments | 800 | 112 | 111 | 112 | 1,135 | ||||
| 2,923 | 2,611 | 2,611 | 3,059 | 11,204 | ||||
Intangible amortization | 3,927 | 2,359 | 2,358 | 2,359 | 11,003 | ||||
Leasing business expense | 13,837 | 13,911 | 13,155 | 12,802 | 53,705 | ||||
Other | 12,914 | 10,820 | 10,927 | 11,158 | 45,819 | ||||
Total noninterest expenses | 149,531 | 134,269 | 128,671 | 128,076 | 540,547 | ||||
Income before income taxes | 79,131 | 90,677 | 87,859 | 63,603 | 321,270 | ||||
Income tax expense | 16,738 | 18,754 | 17,863 | 12,310 | 65,665 | ||||
Net income | $ 62,393 | $ 71,923 | $ 69,996 | $ 51,293 | $ 255,605 | ||||
ADDITIONAL DATA | |||||||||
Net earnings per share - basic | $ 0.65 | $ 0.76 | $ 0.74 | $ 0.54 | $ 2.68 | ||||
Net earnings per share - diluted | $ 0.64 | $ 0.75 | $ 0.73 | $ 0.54 | $ 2.66 | ||||
Dividends declared per share | $ 0.25 | $ 0.25 | $ 0.24 | $ 0.24 | $ 0.98 | ||||
Return on average assets | 1.22 % | 1.54 % | 1.52 % | 1.13 % | 1.35 % | ||||
Return on average shareholders' equity | 9.18 % | 11.08 % | 11.16 % | 8.46 % | 9.98 % | ||||
Interest income | $ 265,331 | $ 250,254 | $ 245,900 | $ 240,419 | |||||
Tax equivalent adjustment | 1,227 | 1,248 | 1,246 | 1,213 | 4,934 | ||||
Interest income - tax equivalent | 266,558 | 251,502 | 247,146 | 241,632 | 1,006,838 | ||||
Interest expense | 91,336 | 89,768 | 87,631 | 91,123 | 359,858 | ||||
Net interest income - tax equivalent | $ 175,222 | $ 161,734 | $ 159,515 | $ 150,509 | $ 646,980 | ||||
Net interest margin | 3.96 % | 3.99 % | 4.01 % | 3.84 % | 3.95 % | ||||
Net interest margin (fully tax equivalent) (1) | 3.98 % | 4.02 % | 4.05 % | 3.88 % | 3.98 % | ||||
Full-time equivalent employees | 2,164 | 1,986 | 2,033 | 2,021 | |||||
(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons. |
CONSOLIDATED STATEMENTS OF CONDITION | |||||||||||||
(Dollars in thousands) | |||||||||||||
(Unaudited) | |||||||||||||
% Change | % Change | ||||||||||||
2026 | 2026 | 2025 | 2025 | 2025 | Linked Qtr. | Comp Qtr. | |||||||
ASSETS | |||||||||||||
Cash and due from banks | $ 206,361 | $ 170,641 | $ 178,553 | $ 174,659 | $ 210,187 | 20.9 % | (1.8) % | ||||||
Interest-bearing deposits with other banks | 579,194 | 1,032,259 | 597,338 | 565,080 | 570,173 | (43.9) % | 1.6 % | ||||||
Investment securities available-for-sale | 4,733,713 | 4,953,023 | 3,971,932 | 3,422,595 | 3,386,562 | (4.4) % | 39.8 % | ||||||
Investment securities held-to-maturity | 46,067 | 49,631 | 58,545 | 71,595 | 72,994 | (7.2) % | (36.9) % | ||||||
Other investments | 137,755 | 137,018 | 129,564 | 117,120 | 122,322 | 0.5 % | 12.6 % | ||||||
Loans held for sale | 33,125 | 18,280 | 16,953 | 21,466 | 26,504 | 81.2 % | 25.0 % | ||||||
Loans and leases | |||||||||||||
Commercial and industrial | 4,842,347 | 4,693,786 | 4,632,241 | 3,838,630 | 3,927,771 | 3.2 % | 23.3 % | ||||||
Lease financing | 659,328 | 649,645 | 638,527 | 596,734 | 587,176 | 1.5 % | 12.3 % | ||||||
Construction real estate | 599,258 | 591,080 | 677,339 | 627,960 | 732,777 | 1.4 % | (18.2) % | ||||||
Commercial real estate | 4,548,887 | 4,473,468 | 4,384,556 | 4,048,370 | 3,961,513 | 1.7 % | 14.8 % | ||||||
Residential real estate | 1,805,044 | 1,831,338 | 1,832,184 | 1,494,464 | 1,492,688 | (1.4) % | 20.9 % | ||||||
Home equity | 1,058,175 | 1,026,839 | 1,005,204 | 935,975 | 903,299 | 3.1 % | 17.1 % | ||||||
Installment | 156,470 | 162,314 | 188,694 | 109,764 | 116,598 | (3.6) % | 34.2 % | ||||||
Credit card | 65,405 | 66,371 | 65,325 | 62,654 | 64,374 | (1.5) % | 1.6 % | ||||||
Total loans | 13,734,914 | 13,494,841 | 13,424,070 | 11,714,551 | 11,786,196 | 1.8 % | 16.5 % | ||||||
Less: | |||||||||||||
Allowance for credit losses | (189,912) | (183,716) | (186,487) | (161,916) | (158,522) | 3.4 % | 19.8 % | ||||||
Net loans | 13,545,002 | 13,311,125 | 13,237,583 | 11,552,635 | 11,627,674 | 1.8 % | 16.5 % | ||||||
Premises and equipment | 229,763 | 228,384 | 204,760 | 198,251 | 197,741 | 0.6 % | 16.2 % | ||||||
Operating leases | 241,742 | 220,061 | 214,003 | 214,667 | 217,100 | 9.9 % | 11.4 % | ||||||
| 1,099,936 | 1,099,543 | 1,099,524 | 1,007,656 | 1,007,656 | 0.0 % | 9.2 % | ||||||
Other intangibles | 140,705 | 145,927 | 118,832 | 73,797 | 75,458 | (3.6) % | 86.5 % | ||||||
Accrued interest and other assets | 1,446,316 | 1,413,923 | 1,301,792 | 1,134,985 | 1,119,884 | 2.3 % | 29.1 % | ||||||
Total Assets | $ 22,439,679 | $ 21,129,379 | $ 18,634,255 | (1.5) % | 20.4 % | ||||||||
LIABILITIES | |||||||||||||
Deposits | |||||||||||||
Interest-bearing demand | $ 3,804,301 | $ 3,658,155 | $ 3,360,613 | $ 2,983,132 | $ 3,057,232 | 4.0 % | 24.4 % | ||||||
Savings | 6,423,986 | 6,460,546 | 5,973,532 | 5,029,097 | 4,979,124 | (0.6) % | 29.0 % | ||||||
Time | 3,650,043 | 3,817,268 | 3,622,227 | 3,293,707 | 3,201,711 | (4.4) % | 14.0 % | ||||||
Total interest-bearing deposits | 13,878,330 | 13,935,969 | 12,956,372 | 11,305,936 | 11,238,067 | (0.4) % | 23.5 % | ||||||
Noninterest-bearing | 3,704,899 | 3,982,753 | 3,465,470 | 3,127,512 | 3,131,926 | (7.0) % | 18.3 % | ||||||
Total deposits | 17,583,229 | 17,918,722 | 16,421,842 | 14,433,448 | 14,369,993 | (1.9) % | 22.4 % | ||||||
FHLB short-term borrowings | 570,000 | 550,000 | 675,000 | 550,000 | 680,000 | 3.6 % | (16.2) % | ||||||
Other | 39,532 | 70,457 | 332 | 45,167 | 4,699 | (43.9) % | 741.3 % | ||||||
Total short-term borrowings | 609,532 | 620,457 | 675,332 | 595,167 | 684,699 | (1.8) % | (11.0) % | ||||||
Long-term debt | 382,550 | 380,176 | 514,052 | 221,823 | 344,955 | 0.6 % | 10.9 % | ||||||
Total borrowed funds | 992,082 | 1,000,633 | 1,189,384 | 816,990 | 1,029,654 | (0.9) % | (3.6) % | ||||||
Accrued interest and other liabilities | 876,880 | 919,835 | 748,937 | 672,213 | 676,453 | (4.7) % | 29.6 % | ||||||
Total Liabilities | 19,452,191 | 19,839,190 | 18,360,163 | 15,922,651 | 16,076,100 | (2.0) % | 21.0 % | ||||||
SHAREHOLDERS' EQUITY | |||||||||||||
Common stock | 1,792,158 | 1,789,676 | 1,647,618 | 1,641,315 | 1,638,796 | 0.1 % | 9.4 % | ||||||
Retained earnings | 1,535,765 | 1,485,573 | 1,437,286 | 1,399,577 | 1,351,674 | 3.4 % | 13.6 % | ||||||
Accumulated other comprehensive income (loss) | (223,720) | (217,430) | (189,942) | (223,000) | (246,384) | 2.9 % | (9.2) % | ||||||
| (116,715) | (117,194) | (125,746) | (186,037) | (185,931) | (0.4) % | (37.2) % | ||||||
Total Shareholders' Equity | 2,987,488 | 2,940,625 | 2,769,216 | 2,631,855 | 2,558,155 | 1.6 % | 16.8 % | ||||||
Total Liabilities and Shareholders' Equity | $ 22,439,679 | $ 21,129,379 | $ 18,634,255 | (1.5) % | 20.4 % | ||||||||
AVERAGE CONSOLIDATED STATEMENTS OF CONDITION | |||||||||||||
(Dollars in thousands) | |||||||||||||
(Unaudited) | |||||||||||||
Quarterly Averages | Year-to-Date Averages | ||||||||||||
2026 | 2026 | 2025 | 2025 | 2025 | 2026 | 2025 | |||||||
ASSETS | |||||||||||||
Cash and due from banks | $ 182,261 | $ 227,115 | $ 178,403 | $ 165,210 | $ 174,375 | $ 204,564 | $ 169,581 | ||||||
Interest-bearing deposits with other banks | 605,647 | 596,094 | 647,347 | 610,074 | 542,815 | 600,897 | 579,112 | ||||||
Investment securities | 5,079,730 | 4,769,261 | 3,988,846 | 3,552,014 | 3,478,921 | 4,925,353 | 3,445,443 | ||||||
Loans held for sale | 32,458 | 451,139 | 32,425 | 26,366 | 25,026 | 240,642 | 17,660 | ||||||
Loans and leases | |||||||||||||
Commercial and industrial | 4,723,431 | 4,771,066 | 4,310,399 | 3,890,886 | 3,881,001 | 4,747,117 | 3,834,363 | ||||||
Lease financing | 646,520 | 630,204 | 617,518 | 592,510 | 581,091 | 638,407 | 583,094 | ||||||
Construction real estate | 583,146 | 643,270 | 679,884 | 711,011 | 784,028 | 613,042 | 790,528 | ||||||
Commercial real estate | 4,546,901 | 4,446,231 | 4,240,042 | 3,993,549 | 3,958,730 | 4,496,844 | 3,988,306 | ||||||
Residential real estate | 1,812,228 | 1,834,467 | 1,717,439 | 1,489,942 | 1,485,479 | 1,823,286 | 1,480,618 | ||||||
Home equity | 1,043,805 | 1,016,080 | 981,406 | 919,368 | 891,761 | 1,030,019 | 875,050 | ||||||
Installment | 158,760 | 166,979 | 164,013 | 114,058 | 117,724 | 162,847 | 122,432 | ||||||
Credit card | 71,790 | 68,888 | 69,141 | 68,375 | 68,000 | 70,347 | 66,921 | ||||||
Total loans | 13,586,581 | 13,577,185 | 12,779,842 | 11,779,699 | 11,767,814 | 13,581,909 | 11,741,312 | ||||||
Less: | |||||||||||||
Allowance for credit losses | (186,331) | (200,745) | (179,275) | (162,417) | (158,170) | (193,498) | (158,188) | ||||||
Net loans | 13,400,250 | 13,376,440 | 12,600,567 | 11,617,282 | 11,609,644 | 13,388,411 | 11,583,124 | ||||||
Premises and equipment | 230,343 | 230,154 | 202,956 | 199,167 | 198,407 | 230,249 | 198,701 | ||||||
Operating leases | 234,460 | 215,318 | 211,091 | 217,404 | 212,684 | 224,942 | 208,953 | ||||||
| 1,099,742 | 1,099,543 | 1,069,781 | 1,007,656 | 1,007,656 | 1,099,643 | 1,007,656 | ||||||
Other intangibles | 143,403 | 149,631 | 104,184 | 74,448 | 76,076 | 146,500 | 77,142 | ||||||
Accrued interest and other assets | 1,383,145 | 1,345,026 | 1,220,939 | 1,096,567 | 1,093,833 | 1,364,191 | 1,106,789 | ||||||
Total Assets | $ 22,391,439 | $ 20,256,539 | $ 18,566,188 | $ 18,419,437 | $ 22,425,392 | $ 18,394,161 | |||||||
LIABILITIES | |||||||||||||
Deposits | |||||||||||||
Interest-bearing demand | $ 3,762,177 | $ 3,626,103 | $ 3,276,425 | $ 3,036,296 | $ 3,066,986 | $ 3,694,516 | $ 3,078,691 | ||||||
Savings | 6,434,399 | 6,406,223 | 5,740,651 | 5,054,563 | 5,005,526 | 6,420,389 | 4,962,007 | ||||||
Time | 3,678,808 | 3,868,224 | 3,504,872 | 3,296,789 | 3,139,182 | 3,772,993 | 3,140,137 | ||||||
Total interest-bearing deposits | 13,875,384 | 13,900,550 | 12,521,948 | 11,387,648 | 11,211,694 | 13,887,898 | 11,180,835 | ||||||
Noninterest-bearing | 3,811,391 | 3,745,002 | 3,436,709 | 3,124,277 | 3,143,081 | 3,778,380 | 3,117,203 | ||||||
Total deposits | 17,686,775 | 17,645,552 | 15,958,657 | 14,511,925 | 14,354,775 | 17,666,278 | 14,298,038 | ||||||
Federal funds purchased and securities sold | |||||||||||||
under agreements to repurchase | 3,351 | 16,278 | 2,283 | 12,434 | 4,780 | 9,779 | 3,425 | ||||||
FHLB short-term borrowings | 508,931 | 538,084 | 444,511 | 497,092 | 532,198 | 523,427 | 542,873 | ||||||
Other | 0 | 0 | 13,891 | 21,519 | 26,226 | 0 | 62,600 | ||||||
Total short-term borrowings | 512,282 | 554,362 | 460,685 | 531,045 | 563,204 | 533,206 | 608,898 | ||||||
Long-term debt | 379,354 | 457,799 | 387,965 | 292,301 | 347,369 | 418,360 | 346,806 | ||||||
Total borrowed funds | 891,636 | 1,012,161 | 848,650 | 823,346 | 910,573 | 951,566 | 955,704 | ||||||
Accrued interest and other liabilities | 861,791 | 854,423 | 753,651 | 655,714 | 638,342 | 858,127 | 653,493 | ||||||
Total Liabilities | 19,440,202 | 19,512,136 | 17,560,958 | 15,990,985 | 15,903,690 | 19,475,971 | 15,907,235 | ||||||
SHAREHOLDERS' EQUITY | |||||||||||||
Common stock | 1,790,690 | 1,795,255 | 1,644,923 | 1,639,986 | 1,637,782 | 1,792,960 | 1,639,390 | ||||||
Retained earnings | 1,499,207 | 1,448,012 | 1,406,388 | 1,369,069 | 1,322,168 | 1,473,751 | 1,302,344 | ||||||
Accumulated other comprehensive loss | (221,515) | (173,065) | (209,767) | (247,746) | (257,873) | (197,424) | (266,423) | ||||||
| (117,145) | (122,617) | (145,963) | (186,106) | (186,330) | (119,866) | (188,385) | ||||||
Total Shareholders' Equity | 2,951,237 | 2,947,585 | 2,695,581 | 2,575,203 | 2,515,747 | 2,949,421 | 2,486,926 | ||||||
Total Liabilities and Shareholders' Equity | $ 22,391,439 | $ 20,256,539 | $ 18,566,188 | $ 18,419,437 | $ 22,425,392 | $ 18,394,161 | |||||||
NET INTEREST MARGIN RATE/VOLUME ANALYSIS | ||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
Quarterly Averages | Year-to-Date Averages | |||||||||||||||||||||||||
Balance | Interest | Yield | Balance | Interest | Yield | Balance | Interest | Yield | Balance | Yield | Balance | Yield | ||||||||||||||
Earning assets | ||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||
Investment securities | $ 5,079,730 | $ 56,376 | 4.45 % | $ 4,769,261 | $ 52,017 | 4.42 % | $ 3,478,921 | $ 38,476 | 4.44 % | $ 4,925,353 | 4.44 % | $ 3,445,443 | 4.39 % | |||||||||||||
Interest-bearing deposits with other banks | 605,647 | 5,381 | 3.56 % | 596,094 | 5,450 | 3.71 % | 542,815 | 5,964 | 4.41 % | 600,897 | 3.63 % | 579,112 | 4.39 % | |||||||||||||
Gross loans (1) | 13,619,039 | 219,164 | 6.45 % | 14,028,324 | 224,951 | 6.50 % | 11,792,840 | 201,460 | 6.85 % | 13,822,551 | 6.48 % | 11,758,972 | 6.84 % | |||||||||||||
Total earning assets | 19,304,416 | 280,921 | 5.84 % | 19,393,679 | 282,418 | 5.91 % | 15,814,576 | 245,900 | 6.24 % | 19,348,801 | 5.87 % | 15,783,527 | 6.21 % | |||||||||||||
Nonearning assets | ||||||||||||||||||||||||||
Allowance for credit losses | (186,331) | (200,745) | (158,170) | (193,498) | (158,188) | |||||||||||||||||||||
Cash and due from banks | 182,261 | 227,115 | 174,375 | 204,564 | 169,581 | |||||||||||||||||||||
Accrued interest and other assets | 3,091,093 | 3,039,672 | 2,588,656 | 3,065,525 | 2,599,241 | |||||||||||||||||||||
Total assets | ||||||||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||
Interest-bearing demand | $ 3,762,177 | $ 14,288 | 1.52 % | $ 3,626,103 | $ 13,281 | 1.49 % | $ 3,066,986 | $ 14,139 | 1.85 % | $ 3,694,516 | 1.50 % | $ 3,078,691 | 1.92 % | |||||||||||||
Savings | 6,434,399 | 33,405 | 2.08 % | 6,406,223 | 32,480 | 2.06 % | 5,005,526 | 29,942 | 2.40 % | 6,420,389 | 2.07 % | 4,962,007 | 2.45 % | |||||||||||||
Time | 3,678,808 | 31,557 | 3.44 % | 3,868,224 | 33,974 | 3.56 % | 3,139,182 | 31,403 | 4.01 % | 3,772,993 | 3.50 % | 3,140,137 | 4.14 % | |||||||||||||
Total interest-bearing deposits | 13,875,384 | 79,250 | 2.29 % | 13,900,550 | 79,735 | 2.33 % | 11,211,694 | 75,484 | 2.70 % | 13,887,898 | 2.31 % | 11,180,835 | 2.78 % | |||||||||||||
Borrowed funds | ||||||||||||||||||||||||||
Short-term borrowings | 512,282 | 4,997 | 3.91 % | 554,362 | 5,168 | 3.78 % | 563,204 | 6,393 | 4.55 % | 533,206 | 3.84 % | 608,898 | 4.62 % | |||||||||||||
Long-term debt | 379,354 | 6,297 | 6.66 % | 457,799 | 7,905 | 7.00 % | 347,369 | 5,754 | 6.64 % | 418,360 | 6.85 % | 346,806 | 6.22 % | |||||||||||||
Total borrowed funds | 891,636 | 11,294 | 5.08 % | 1,012,161 | 13,073 | 5.24 % | 910,573 | 12,147 | 5.35 % | 951,566 | 5.16 % | 955,704 | 5.20 % | |||||||||||||
Total interest-bearing liabilities | 14,767,020 | 90,544 | 2.46 % | 14,912,711 | 92,808 | 2.52 % | 12,122,267 | 87,631 | 2.90 % | 14,839,464 | 2.49 % | 12,136,539 | 2.97 % | |||||||||||||
Noninterest-bearing liabilities | ||||||||||||||||||||||||||
Noninterest-bearing demand deposits | 3,811,391 | 3,745,002 | 3,143,081 | 3,778,380 | 3,117,203 | |||||||||||||||||||||
Other liabilities | 861,791 | 854,423 | 638,342 | 858,127 | 653,493 | |||||||||||||||||||||
Shareholders' equity | 2,951,237 | 2,947,585 | 2,515,747 | 2,949,421 | 2,486,926 | |||||||||||||||||||||
Total liabilities & shareholders' equity | ||||||||||||||||||||||||||
Net interest income | $ 190,377 | $ 189,610 | $ 158,269 | $ 379,987 | $ 307,565 | |||||||||||||||||||||
Net interest spread | 3.38 % | 3.39 % | 3.34 % | 3.38 % | 3.24 % | |||||||||||||||||||||
Net interest margin | 3.96 % | 3.97 % | 4.01 % | 3.96 % | 3.93 % | |||||||||||||||||||||
Tax equivalent adjustment | 0.02 % | 0.02 % | 0.04 % | 0.02 % | 0.03 % | |||||||||||||||||||||
Net interest margin (fully tax equivalent) | 3.98 % | 3.99 % | 4.05 % | 3.98 % | 3.96 % | |||||||||||||||||||||
(1) Loans held for sale and nonaccrual loans are included in gross loans. |
NET INTEREST MARGIN RATE/VOLUME ANALYSIS (1) | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Linked Qtr. Income Variance | Comparable Qtr. Income Variance | Year-to-Date Income Variance | ||||||||||||||||
Rate | Volume | Total | Rate | Volume | Total | Rate | Volume | Total | ||||||||||
Earning assets | ||||||||||||||||||
Investment securities | $ 332 | $ 4,027 | $ 4,359 | $ 134 | $ 17,766 | $ 17,900 | $ 743 | $ 32,569 | $ 33,312 | |||||||||
Interest-bearing deposits with other banks | (212) | 143 | (69) | (1,141) | 558 | (583) | (2,177) | 393 | (1,784) | |||||||||
Gross loans (2) | (1,681) | (4,106) | (5,787) | (11,684) | 29,388 | 17,704 | (20,810) | 66,302 | 45,492 | |||||||||
Total earning assets | (1,561) | 64 | (1,497) | (12,691) | 47,712 | 35,021 | (22,244) | 99,264 | 77,020 | |||||||||
Interest-bearing liabilities | ||||||||||||||||||
Total interest-bearing deposits | $ (1,214) | $ 729 | $ (485) | $ (11,448) | $ 15,214 | $ 3,766 | $ (26,130) | $ 30,990 | $ 4,860 | |||||||||
Borrowed funds | ||||||||||||||||||
Short-term borrowings | 180 | (351) | (171) | (899) | (497) | (1,396) | (2,330) | (1,443) | (3,773) | |||||||||
Long-term debt | (389) | (1,219) | (1,608) | 12 | 531 | 543 | 1,082 | 2,429 | 3,511 | |||||||||
Total borrowed funds | (209) | (1,570) | (1,779) | (887) | 34 | (853) | (1,248) | 986 | (262) | |||||||||
Total interest-bearing liabilities | (1,423) | (841) | (2,264) | (12,335) | 15,248 | 2,913 | (27,378) | 31,976 | 4,598 | |||||||||
Net interest income (1) | $ (138) | $ 905 | $ 767 | $ (356) | $ 32,464 | $ 32,108 | $ 5,134 | $ 67,288 | $ 72,422 | |||||||||
(1) Not tax equivalent. | ||||||||||||||||||
(2) Loans held for sale and nonaccrual loans are included in gross loans. |
CREDIT QUALITY | |||||||||||||
(Dollars in thousands) | |||||||||||||
(Unaudited) | |||||||||||||
Three Months Ended, | Six months ended | ||||||||||||
2026 | 2026 | 2025 | 2025 | 2025 | 2026 | 2025 | |||||||
ALLOWANCE FOR CREDIT LOSS ACTIVITY | |||||||||||||
Balance at beginning of period | $ 183,716 | $ 186,487 | $ 161,916 | $ 158,522 | $ 155,482 | $ 186,487 | $ 156,791 | ||||||
Initial allowance on purchased loans | 0 | 2,829 | 23,652 | 0 | 0 | 2,829 | 0 | ||||||
Provision for credit losses | 12,933 | 6,030 | 9,688 | 8,612 | 9,084 | 18,963 | 18,225 | ||||||
Gross charge-offs | |||||||||||||
Commercial and industrial | 2,437 | 10,788 | 6,636 | 2,165 | 4,996 | 13,225 | 13,174 | ||||||
Lease financing | 1,314 | 43 | 918 | 298 | 606 | 1,357 | 2,060 | ||||||
Construction real estate | 0 | 0 | 0 | 245 | 0 | 0 | 0 | ||||||
Commercial real estate | 2,484 | 29 | 433 | 3,105 | 0 | 2,513 | 0 | ||||||
Residential real estate | 84 | 127 | 151 | 0 | 16 | 211 | 16 | ||||||
Home equity | 262 | 119 | 95 | 92 | 100 | 381 | 186 | ||||||
Installment | 1,034 | 1,058 | 1,197 | 1,194 | 1,120 | 2,092 | 2,441 | ||||||
Credit card | 704 | 496 | 729 | 577 | 489 | 1,200 | 963 | ||||||
Total gross charge-offs | 8,319 | 12,660 | 10,159 | 7,676 | 7,327 | 20,979 | 18,840 | ||||||
Recoveries | |||||||||||||
Commercial and industrial | 463 | 100 | 264 | 202 | 290 | 563 | 485 | ||||||
Lease financing | 114 | 23 | 201 | 291 | 11 | 137 | 40 | ||||||
Construction real estate | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Commercial real estate | 8 | 28 | 5 | 1,138 | 70 | 36 | 94 | ||||||
Residential real estate | 18 | 30 | 13 | 58 | 42 | 48 | 66 | ||||||
Home equity | 157 | 116 | 117 | 94 | 74 | 273 | 218 | ||||||
Installment | 660 | 598 | 682 | 609 | 716 | 1,258 | 1,279 | ||||||
Credit card | 162 | 135 | 108 | 66 | 80 | 297 | 164 | ||||||
Total recoveries | 1,582 | 1,030 | 1,390 | 2,458 | 1,283 | 2,612 | 2,346 | ||||||
Total net charge-offs | 6,737 | 11,630 | 8,769 | 5,218 | 6,044 | 18,367 | 16,494 | ||||||
Ending allowance for credit losses | $ 189,912 | $ 183,716 | $ 186,487 | $ 161,916 | $ 158,522 | $ 189,912 | $ 158,522 | ||||||
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED) | |||||||||||||
Commercial and industrial | 0.17 % | 0.91 % | 0.59 % | 0.20 % | 0.49 % | 0.54 % | 0.67 % | ||||||
Lease financing | 0.74 % | 0.01 % | 0.46 % | 0.00 % | 0.41 % | 0.39 % | 0.70 % | ||||||
Construction real estate | 0.00 % | 0.00 % | 0.00 % | 0.14 % | 0.00 % | 0.00 % | 0.00 % | ||||||
Commercial real estate | 0.22 % | 0.00 % | 0.04 % | 0.20 % | (0.01) % | 0.11 % | 0.00 % | ||||||
Residential real estate | 0.01 % | 0.02 % | 0.03 % | (0.02) % | (0.01) % | 0.02 % | (0.01) % | ||||||
Home equity | 0.04 % | 0.00 % | (0.01) % | 0.00 % | 0.01 % | 0.02 % | (0.01) % | ||||||
Installment | 0.94 % | 1.12 % | 1.25 % | 2.03 % | 1.38 % | 1.03 % | 1.91 % | ||||||
Credit card | 3.03 % | 2.13 % | 3.56 % | 2.97 % | 2.41 % | 2.59 % | 2.41 % | ||||||
Total net charge-offs | 0.20 % | 0.35 % | 0.27 % | 0.18 % | 0.21 % | 0.27 % | 0.28 % | ||||||
COMPONENTS OF NONACCRUAL LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS | |||||||||||||
Nonaccrual loans | |||||||||||||
Commercial and industrial | $ 20,305 | $ 22,576 | $ 27,461 | $ 23,832 | $ 24,489 | $ 20,305 | $ 24,489 | ||||||
Lease financing | 7,558 | 5,857 | 5,660 | 5,885 | 6,243 | 7,558 | 6,243 | ||||||
Construction real estate | 698 | 715 | 1,120 | 1,120 | 1,365 | 698 | 1,365 | ||||||
Commercial real estate | 44,404 | 49,481 | 45,590 | 24,443 | 23,905 | 44,404 | 23,905 | ||||||
Residential real estate | 18,260 | 17,439 | 18,302 | 16,452 | 16,995 | 18,260 | 16,995 | ||||||
Home equity | 4,095 | 3,687 | 2,927 | 3,567 | 3,226 | 4,095 | 3,226 | ||||||
Installment | 832 | 786 | 748 | 652 | 701 | 832 | 701 | ||||||
Total nonaccrual loans | 96,152 | 100,541 | 101,808 | 75,951 | 76,924 | 96,152 | 76,924 | ||||||
Other real estate owned (OREO) | 174 | 238 | 184 | 111 | 204 | 174 | 204 | ||||||
Total nonperforming assets | 96,326 | 100,779 | 101,992 | 76,062 | 77,128 | 96,326 | 77,128 | ||||||
Accruing loans past due 90 days or more | 650 | 1,366 | 411 | 592 | 714 | 650 | 714 | ||||||
Total underperforming assets | $ 96,976 | $ 102,145 | $ 102,403 | $ 76,654 | $ 77,842 | $ 96,976 | $ 77,842 | ||||||
Total classified assets | $ 226,826 | $ 232,368 | $ 235,451 | $ 218,794 | $ 214,346 | $ 226,826 | $ 214,346 | ||||||
CREDIT QUALITY RATIOS | |||||||||||||
Allowance for credit losses to | |||||||||||||
Nonaccrual loans | 197.51 % | 182.73 % | 183.18 % | 213.18 % | 206.08 % | 197.51 % | 206.08 % | ||||||
Total ending loans | 1.38 % | 1.36 % | 1.39 % | 1.38 % | 1.34 % | 1.38 % | 1.34 % | ||||||
Nonaccrual loans to total loans | 0.70 % | 0.75 % | 0.76 % | 0.65 % | 0.65 % | 0.70 % | 0.65 % | ||||||
Nonperforming assets to | |||||||||||||
Ending loans, plus OREO | 0.70 % | 0.75 % | 0.76 % | 0.65 % | 0.65 % | 0.70 % | 0.65 % | ||||||
Total assets | 0.43 % | 0.44 % | 0.48 % | 0.41 % | 0.41 % | 0.43 % | 0.41 % | ||||||
Classified assets to total assets | 1.01 % | 1.02 % | 1.11 % | 1.18 % | 1.15 % | 1.01 % | 1.15 % | ||||||
CAPITAL ADEQUACY | |||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||
(Unaudited) | |||||||||||||
Three Months Ended, | Six months ended, | ||||||||||||
2026 | 2026 | 2025 | 2025 | 2025 | 2026 | 2025 | |||||||
PER COMMON SHARE | |||||||||||||
Market Price | |||||||||||||
High | $ 33.90 | $ 31.16 | $ 26.98 | $ 26.79 | $ 25.19 | $ 33.90 | $ 29.04 | ||||||
Low | $ 28.06 | $ 25.09 | $ 23.26 | $ 23.55 | $ 22.05 | $ 25.09 | $ 22.05 | ||||||
Close | $ 33.83 | $ 27.88 | $ 25.02 | $ 25.25 | $ 24.26 | $ 33.83 | $ 24.26 | ||||||
Average shares outstanding - basic | 103,938,322 | 103,705,269 | 96,724,148 | 94,889,341 | 94,860,428 | 103,822,439 | 94,753,700 | ||||||
Average shares outstanding - diluted | 104,936,741 | 104,615,405 | 97,593,800 | 95,753,798 | 95,741,696 | 104,776,961 | 95,633,579 | ||||||
Ending shares outstanding | 104,956,458 | 104,932,829 | 98,521,726 | 95,757,250 | 95,760,617 | 104,956,458 | 95,760,617 | ||||||
Total shareholders' equity | $ 2,987,488 | $ 2,940,625 | $ 2,769,216 | $ 2,631,855 | $ 2,558,155 | $ 2,987,488 | $ 2,558,155 | ||||||
Preliminary | Preliminary | ||||||||||||
Common equity tier 1 capital | $ 2,029,668 | $ 1,970,561 | $ 1,798,266 | $ 1,828,843 | $ 1,776,038 | $ 2,029,668 | $ 1,776,038 | ||||||
Common equity tier 1 capital ratio | 12.33 % | 12.22 % | 11.32 % | 12.91 % | 12.57 % | 12.33 % | 12.57 % | ||||||
Tier 1 capital | $ 2,075,286 | $ 2,016,070 | $ 1,843,672 | $ 1,874,191 | $ 1,821,316 | $ 2,075,286 | $ 1,821,316 | ||||||
Tier 1 ratio | 12.61 % | 12.50 % | 11.60 % | 13.23 % | 12.89 % | 12.61 % | 12.89 % | ||||||
Total capital | $ 2,591,169 | $ 2,531,334 | $ 2,457,377 | $ 2,170,546 | $ 2,116,180 | $ 2,591,169 | $ 2,116,180 | ||||||
Total capital ratio | 15.75 % | 15.70 % | 15.46 % | 15.32 % | 14.98 % | 15.75 % | 14.98 % | ||||||
Total capital in excess of minimum requirement | $ 863,256 | $ 837,959 | $ 788,889 | $ 683,018 | $ 632,563 | $ 863,256 | $ 632,563 | ||||||
Total risk-weighted assets | |||||||||||||
Leverage ratio | 9.66 % | 9.39 % | 9.53 % | 10.50 % | 10.28 % | 9.66 % | 10.28 % | ||||||
OTHER CAPITAL RATIOS | |||||||||||||
Ending shareholders' equity to ending assets | 13.31 % | 12.91 % | 13.11 % | 14.18 % | 13.73 % | 13.31 % | 13.73 % | ||||||
Ending tangible shareholders' equity to ending tangible assets (1) | 8.24 % | 7.87 % | 7.79 % | 8.87 % | 8.40 % | 8.24 % | 8.40 % | ||||||
Average shareholders' equity to average assets | 13.18 % | 13.12 % | 13.31 % | 13.87 % | 13.66 % | 13.15 % | 13.52 % | ||||||
Average tangible shareholders' equity to average tangible assets (1) | 8.08 % | 8.01 % | 7.97 % | 8.54 % | 8.26 % | 8.04 % | 8.10 % | ||||||
REPURCHASE PROGRAM (2) | |||||||||||||
Shares repurchased | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Average share repurchase price | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||
Total cost of shares repurchased | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||
(1) Non-GAAP measure. For details on the calculation of these non-GAAP financial measures and a reconciliation to the GAAP financial measure, see the sections titled "Use of Non-GAAP Financial Measures" in this release and "Appendix: Non-GAAP to GAAP Reconciliation" in the accompanying slide presentation. | |||||||||||||
(2) Represents share repurchases as part of publicly announced plans. | |||||||||||||
N/A = Not applicable |
View original content:https://www.prnewswire.com/news-releases/first-financial-bancorp-announces-second-quarter-2026-financial-results-quarterly-dividend-increase--acquisition-of-finward-bancorp-302831305.html
SOURCE