Horizon Bancorp, Inc. Reports Strong Third Quarter 2026 Results, Highlighted By Continued Peer Leading Profitability Metrics And Positive Balance Sheet Momentum

(MENAFN- GlobeNewsWire - Nasdaq) MICHIGAN CITY, Ind., Oct. 21, 2026 (GLOBE NEWSWIRE) -- (NASDAQ GS: HBNC) – Horizon Bancorp, Inc. (“Horizon” or the“Company”), the parent company of Horizon Bank (the“Bank”), announced its unaudited financial results for the three months ended September 30, 2026.

“Horizon's high-quality community banking model continues to demonstrate consistency and durability in an ever-changing macroeconomic environment. Our results through the first nine months of 2026 reflect that strength, with annualized return on average assets remaining above 1.60%, return on tangible common equity of 20%, and the net interest margin sustained in the mid-4.30% range. Despite a meaningful shift in the interest rate outlook since the beginning of the year, our expectations for the business have changed very little, underscoring the resiliency and predictability embedded in our business model,” said President and CEO, Thomas Prame.“During the first nine months of 2026, loans held-for-investment and total deposits increased by $129 million and $206 million, respectively, consistent with our outlook for mid-single-digit organic growth. This performance was further enhanced by continued positive momentum across our fee income businesses and a disciplined approach to expense management. We believe this consistent, low-volatility financial performance will continue to compound capital at peer-leading levels, which remains the cornerstone of our long-term value proposition for shareholders”.

Net income for the three months ended September 30, 2026 was $28.7 million, or $0.56 per diluted share, compared to net income of $24.9 million, or $0.49, for the second quarter of 2026 and net loss of $222.0 million, or $(4.69) per diluted share, for the third quarter of 2025.

Net income for the nine months ended September 30, 2026 was $79.7 million, or $1.55 per diluted share, compared to net loss of $177.4 million, or $(3.94), for the nine months ended September 30, 2025.

Third Quarter 2026 Highlights

• Durability of top-tier performance metrics continues to reflect the strength of Horizon's highly productive community banking model. During the third quarter, the Company generated an annualized return on average assets of 1.73% and a return on average tangible common equity of 20.03%.

• Net interest income of $65.2 million increased 11.6% compared with $58.4 million in the year ago period. The net interest margin, on a fully taxable equivalent ("FTE") basis¹, was 4.37%, consistent with the 4.37% reported for the three months ended June 30, 2026, and significantly higher than the 3.52% reported in the comparable year ago period.

• Total deposits continue to trend favorably, growing by $81.2 million during the quarter, or 6.0% on an annualized basis. These results were further enhanced by the 9.7% annualized growth in non-time deposits. Total deposit costs, inclusive of non-interest bearing balances, remains low, at 1.57%.

• Total loans held for investment ("HFI") increased 3.7% compared to the linked quarter annualized, with balanced growth between commercial, mortgage and consumer portfolios. Loan pipelines continue to be consistent, reflective of Horizon's attractive markets and relationship based community banking model.

• Credit quality remained strong, with annualized net charge offs of 0.10% of average loans during the third quarter. Non-performing assets remain well within expected and historical ranges, with non-performing assets to total assets of 0.68%.

	Financial Highlights
	(Dollars in Thousands Except Share and Per Share Data and Ratios)
	Three Months Ended
	September 30,		June 30,		March 31,		December 31,		September 30,
		2026				2026				2026				2025				2025
Income statement:
Net interest income	$	65,159			$	63,490			$	62,240			$	63,476			$	58,386
Provision (benefit) for credit losses		1,300				916				391				1,630				(3,572	)
Non-interest income (loss)		11,930				12,014				11,243				11,463				(295,334	)
Non-interest expense		41,512				43,844				40,747				40,615				52,952
Income tax expense (benefit)		5,610				5,836				6,177				5,773				(64,338	)
Net Income (Loss)	$	28,667			$	24,908			$	26,168			$	26,921			$	(221,990	)
Per share data:
Basic earnings (loss) per share	$	0.56			$	0.49			$	0.51			$	0.53			$	(4.69	)
Diluted earnings (loss) per share		0.56				0.49				0.51				0.53				(4.69	)
Cash dividends declared per common share		0.16				0.16				0.16				0.16				0.16
Book value per common share		13.68				14.21				13.69				13.50				12.96
Market value - high		20.80				20.29				18.68				18.47				16.88
Market value - low		18.83				16.76				15.57				15.04				15.01
Weighted average shares outstanding - Basic		51,107,844				51,082,827				50,987,426				50,975,693				47,311,642
Weighted average shares outstanding - Diluted		51,358,616				51,304,962				51,243,002				51,277,134				47,311,642
Common shares outstanding (end of period)		51,110,798				51,093,048				51,056,888				50,978,030				50,970,530
Key ratios:
Return on average assets		1.73	%			1.54	%			1.62	%			1.63	%		(12.07)%
Return on average stockholders' equity		15.61				13.97				14.99				15.71				(120.37	)
Total equity to total assets		10.61				11.05				10.65				10.69				9.84
Total loans to deposit ratio		91.39				91.93				90.15				92.62				87.41
Allowance for credit losses to HFI loans		1.04				1.05				1.05				1.05				1.04
Annualized net charge-offs of average total loans (1)		0.10				0.05				0.05				0.08				0.07
Efficiency ratio		53.85				58.07				55.45				54.20				(22.35	)
Key metrics (Non-GAAP) (2)
Net FTE interest margin		4.37	%			4.37	%			4.29	%			4.29	%			3.52	%
Return on average tangible common equity		20.03				18.05				19.02				20.66				(155.03	)
Tangible common equity to tangible assets		8.38				8.81				8.39				8.38				7.60
Tangible book value per common share	$	10.54			$	11.06			$	10.52			$	10.32			$	9.76
(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 $65.2 million in the third quarter of 2026, compared to $63.5 million in the second quarter of 2026, driven by the continued strength of the Company's net FTE interest margin², which remained consistent at 4.37% when compared to the second quarter of 2026. The resiliency in the margin is reflective of continued disciplined loan and deposit pricing and a favorable cashflow redeployment profile during the quarter.

Provision for Credit Losses

During the third quarter of 2026, the Company recorded a provision for credit losses of $1.3 million. This compares to a recorded provision for credit losses of $0.9 million during the second quarter of 2026, and a benefit for credit losses of $3.6 million during the third quarter of 2025. The increase in the provision for credit losses during the third quarter of 2026 when compared with the second quarter of 2026 was primarily due to changes in the economic forecast, net loan growth and an increase in specific reserves on commercial loans.

For the third quarter of 2026, net charge-offs were $1.2 million, or an annualized 0.10% of average loans outstanding, compared to net charge-offs of $0.6 million, or an annualized 0.05% of average loans outstanding for the second quarter of 2026, and net charge-offs of $0.8 million, or an annualized 0.07% of average loans outstanding, in the third quarter of 2025.

The Company's allowance for credit losses as a percentage of period-end loans HFI was 1.04% at September 30, 2026, down from 1.05% June 30, 2026, and consistent with 1.04% at September 30, 2025.

Non-Interest Income

For the Quarter Ended	September 30,		June 30,		March 31,		December 31,		September 30,
(Dollars in Thousands)		2026			2026		2026		2025			2025
Non-interest Income (Loss)
Service charges on deposit accounts	$	3,518			$	3,376		$	3,524		$	3,341		$	3,474
Wire transfer fees		65				67			63			66			71
Interchange fees		3,537				3,595			3,373			3,445			3,510
Fiduciary activities		1,465				1,501			1,556			1,560			1,363
Gain (loss) on sale of investment securities		(8	)			-			-			1			(299,132	)
Gain on sale of mortgage loans		2,125				1,576			1,090			1,296			1,208
Mortgage servicing income net of impairment		246				350			337			352			351
Increase in cash value of bank owned life insurance		385				345			333			360			379
Other income (loss)		597				1,204			967			1,042			(6,558	)
Total non-interest income (loss)	$	11,930			$	12,014		$	11,243		$	11,463		$	(295,334	)

Total non-interest income was $11.9 million in the third quarter of 2026, compared to non-interest income of $12.0 million in the second quarter of 2026. The third quarter performance reflects an increase in the gain on sale of mortgage loans due to increased volumes and wider margins on loan sales, offset by a decrease in other income and lower net mortgage servicing revenue owed to increased amortization of mortgage servicing rights. All other components of non-interest income remained relatively stable quarter over quarter.

Non-Interest Expense

For the Quarter Ended	September 30,		June 30,		March 31,		December 31,		September 30,
(Dollars in Thousands)	2026			2026			2026		2025		2025
Non-interest Expense
Salaries and employee benefits	$	24,233		$	24,194			$	23,187		$	21,895		$	22,698
Net occupancy expenses		3,701			3,698				4,197			3,718			3,321
Data processing		3,377			3,631				3,353			3,128			2,933
Professional fees		631			(64	)			929			1,083			808
Outside services and consultants		2,619			2,537				2,764			3,035			3,844
Loan expense		1,505			1,417				1,219			1,183			1,237
FDIC insurance expense		680			1,003				1,023			1,251			1,345
Core deposit intangible amortization		620			675				675			706			706
Prepayment penalties		-			-				-			-			12,680
Other losses		308			115				192			732			131
Other expense		3,838			6,638				3,208			3,884			3,249
Total non-interest expense	$	41,512		$	43,844			$	40,747		$	40,615		$	52,952

Total non-interest expense was $41.5 million in the third quarter of 2026, compared to $43.8 million in the second quarter of 2026. The decrease was driven by the previously announced second quarter legal charge for $3.1 million in other expense, which did not recur. Apart from this item, the decrease was driven by a reduction in FDIC insurance expense of $0.3 million and a decline in data processing expenses of $0.3 million. These variances were partially offset by a more normalized run rate in professional fees of $0.7 million. All other components of non-interest expense remained relatively stable quarter over quarter.

Income Taxes

Horizon recorded a net tax expense of $5.6 million for the third quarter of 2026, resulting in an effective tax rate of 16.4%, compared to 19.0% for the second quarter of 2026. Income tax expense was favorably impacted by a discrete benefit of $0.9 million in the third quarter of 2026.

Balance Sheet Highlights

Total assets increased by $17.0 million, or 0.3%, to $6.6 billion as of September 30, 2026 when compared to the prior period. Asset growth during the period was primarily driven by an increase in gross loans HFI of $46.9 million, an increase other assets of $22.1 million and an increase in non-interest earning cash of $11.8 million. The increase was partially offset by a decrease in investment securities of $40.2 million and a decrease in interest earning deposits of $24.6 million.

Total deposits increased by $81.1 million, or 1.5%, to $5.5 billion as of September 30, 2026 compared with June 30, 2026. The increase was driven by a $84.0 million increase in interest bearing deposits, a $12.2 million increase in savings and money market deposits and a $8.8 million increase in non-interest-bearing demand deposits. The increase was partially offset by a decrease of $23.9 million in time deposits. The overall increase in deposits reflects continued success in core deposit gathering efforts.

Overall, balance sheet growth during the quarter reflected a combination of steady loan and deposit growth, and proactive liquidity management. Management continues to focus on maintaining a strong funding position while supporting measured, relationship-driven loan growth aligned with creating long-term shareholder value.

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 September 30, 2026:

For the Quarter Ended		September 30,		June 30,		March 31,		December 31,
		2026*		2026		2026		2025
Consolidated Capital Ratios
Total capital (to risk-weighted assets)		15.48	%		15.02	%		14.76	%		14.36	%
Tier 1 capital (to risk-weighted assets)		12.62			12.17			11.90			11.51
Common equity tier 1 capital (to risk-weighted assets)		11.53			11.09			10.81			10.42
Tier 1 capital (to average assets)		10.37			10.17			9.84			9.55
*Preliminary estimate - may be subject to change

As of September 30, 2026, the ratio of total stockholders' equity to total assets is 10.61%. Book value per common share was $13.68, decreasing $0.53 during the third quarter of 2026, primarily due to an increase in unrealized losses recorded in accumulated other comprehensive income.

Tangible common equity³ totaled $538.9 million at September 30, 2026, and the ratio of tangible common equity to tangible assets¹ was 8.38% at September 30, 2026, down from 8.81% at June 30, 2026. Tangible book value¹ which excludes intangible assets from total equity, per common share was $10.54 at September 30, 2026.

Credit Quality

As of September 30, 2026, total non-accrual loans increased by $1.4 million from June 30, 2026, and represent 0.67% of total loans held for investment. Total non-performing assets increased by $0.9 million, to $44.6 million, compared with $43.7 million at June 30, 2026. Non-performing assets are 0.68% of total assets at quarter end, up slightly from 0.66% at June 30, 2026.

For the quarter ended September 30, 2026, net charge-offs were $1.2 million, or 0.10% annualized of average loans. Charge‐off levels during the quarter remained low, and consistent with management's expectations, reflecting a continued focus on disciplined underwriting and proactive portfolio monitoring. Overall, credit metrics remain stable, and management continues to closely monitor portfolio performance in the current economic environment.

Earnings Conference Call

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

Participants may access the live conference call on October 22, 2026 at 7:30 a.m. CT (8:30 a.m. ET) by dialing 1-833-974-2379 from the United States and 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 November 22, 2026. The replay may be accessed by dialing 1-855-669-9658 from the United States and Canada, or 1–412–317-0088 from other international locations, and entering the access code 1977515.

About Horizon Bancorp, Inc.

Horizon Bancorp, Inc. (NASDAQ GS: HBNC) is the $6.6 billion-asset commercial bank holding company for Horizon Bank, which serves customers across diverse and economically attractive Midwestern markets through convenient digital and virtual tools, as well as its Indiana and Michigan branches. Horizon's retail offerings include prime residential and other secured consumer lending to in-market customers, as well as a range of personal banking and wealth management solutions. Horizon also provides a comprehensive array of in-market business banking and treasury management services, as well as equipment financing solutions for customers regionally and nationally, with commercial lending representing over half of total loans. More information on Horizon, headquartered in Northwest Indiana's Michigan City, is available at horizonbank.com and investor.horizonbank.com.

Use of Non-GAAP Financial Measures

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

Forward Looking Statements

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

Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include: changes in U.S. trade policies, including the imposition of tariffs and retaliatory tariffs, changes within the domestic and international macroeconomic environment, including trade policy, monetary and fiscal policy, inflation levels, and conditions in the investment, credit, interest rate, and derivatives markets, and their impact on Horizon and its customers; current financial conditions within the banking industry; changes in the level and volatility of interest rates, changes in spreads on earning assets and changes in interest bearing liabilities; increased interest rate sensitivity; loss of key Horizon personnel; increases in disintermediation; potential loss of fee income, including interchange fees, as new and emerging alternative payment platforms take a greater market share of the payment systems; estimates of fair value of certain of Horizon's assets and liabilities; changes in prepayment speeds, loan originations, credit losses, market values, collateral securing loans and other assets; changes in sources of liquidity; legislative and regulatory actions and reforms; changes in accounting policies or procedures as may be adopted and required by regulatory agencies; litigation, regulatory enforcement, and legal compliance risk and costs; rapid technological developments and changes; cyber terrorism and data security breaches; the rising costs of cybersecurity; the ability of the U.S. federal government to manage federal debt limits; climate change and social justice initiatives; the inability to realize cost savings or revenues or to effectively implement integration plans and other consequences associated with mergers, acquisitions, and divestitures; acts of terrorism, war and global conflicts, and the effects of foreign and military policies of the U.S. government; and supply chain disruptions and delays. These and additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in Horizon's reports (such as the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K) filed with the SEC and available at the SEC's website ( ). 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.

Contact:	John R. Stewart, CFA
	EVP, Chief Financial Officer
Phone:	(219) 814–5833
Fax:	(219) 874–9280
Date:	October 21, 2026

	Condensed Consolidated Statements of Income
	(Dollars in Thousands Except Per Share Data, Unaudited)
	Three Months Ended
	September 30,		June 30,		March 31,		December 31,		September 30,
		2026				2026			2026		2025			2025
Interest Income
Loans receivable	$	79,580			$	77,740			$	75,104		$	77,238		$	79,561
Investment securities - taxable		7,426				7,248				7,494			7,688			6,631
Investment securities - tax-exempt		2,570				2,583				2,544			2,498			4,581
Other		1,493				937				1,509			1,864			2,063
Total interest income		91,069				88,508				86,651			89,288			92,836
Interest Expense
Deposits		21,365				20,479				19,944			21,228			25,726
Borrowed funds		1,655				1,655				1,654			1,749			5,924
Subordinated notes		1,898				1,904				1,830			1,811			1,731
Junior subordinated debentures issued to capital trusts		992				980				983			1,024			1,069
Total interest expense		25,910				25,018				24,411			25,812			34,450
Net Interest Income		65,159				63,490				62,240			63,476			58,386
Provision (benefit) for credit losses		1,300				916				391			1,630			(3,572	)
Net Interest Income after Provision for Credit Losses		63,859				62,574				61,849			61,846			61,958
Non-interest Income (loss)
Service charges on deposit accounts		3,518				3,376				3,524			3,341			3,474
Wire transfer fees		65				67				63			66			71
Interchange fees		3,537				3,595				3,373			3,445			3,510
Fiduciary activities		1,465				1,501				1,556			1,560			1,363
Gain (loss) on sale of investment securities		(8	)			-				-			1			(299,132	)
Gain on sale of mortgage loans		2,125				1,576				1,090			1,296			1,208
Mortgage servicing income net of impairment		246				350				337			352			351
Increase in cash value of bank owned life insurance		385				345				333			360			379
Other income (loss)		597				1,204				967			1,042			(6,558	)
Total non-interest income (loss)		11,930				12,014				11,243			11,463			(295,334	)
Non-interest Expense
Salaries and employee benefits		24,233				24,194				23,187			21,895			22,698
Net occupancy expenses		3,701				3,698				4,197			3,718			3,321
Data processing		3,377				3,631				3,353			3,128			2,933
Professional fees		631				(64	)			929			1,083			808
Outside services and consultants		2,619				2,537				2,764			3,035			3,844
Loan expense		1,505				1,417				1,219			1,183			1,237
FDIC insurance expense		680				1,003				1,023			1,251			1,345
Core deposit intangible amortization		620				675				675			706			706
Prepayment penalties		-				-				-			-			12,680
Other losses		308				115				192			732			131
Other expense		3,838				6,638				3,208			3,884			3,249
Total non-interest expense		41,512				43,844				40,747			40,615			52,952
Income (Loss) Before Income Taxes		34,277				30,744				32,345			32,694			(286,328	)
Income tax expense (benefit)		5,610				5,836				6,177			5,773			(64,338	)
Net Income (Loss)	$	28,667			$	24,908			$	26,168		$	26,921		$	(221,990	)
Basic Earnings (Loss) Per Share	$	0.56			$	0.49			$	0.51		$	0.53		$	(4.69	)
Diluted Earnings (Loss) Per Share		0.56				0.49				0.51			0.53			(4.69	)

	Condensed Consolidated Balance Sheet
	(Dollars in Thousands, Unaudited)
	Three Months Ended for the Period
	September 30,		June 30,		March 31,		December 31,		September 30,
		2026				2026				2026				2025				2025
Assets
Interest earning assets
Federal funds sold	$	5,113			$	-			$	-			$	-			$	-
Interest earning deposits		120,965				145,571				190,717				72,646				381,860
Federal Home Loan Bank stock		7,418				7,418				45,713				45,713				45,713
Investment securities, held for trading		3,979				3,885				3,983				3,883				598
Investment securities, available for sale		857,429				897,764				882,168				875,414				883,242
Loans held for sale		3,523				5,147				9,821				9,778				1,921
Gross loans held for investment (HFI)		5,005,979				4,959,120				4,878,549				4,876,542				4,823,669
Total Interest earning assets		6,004,406				6,018,905				6,010,951				5,883,976				6,137,003
Non-interest earning assets
Allowance for credit losses		(52,310	)			(51,921	)			(51,297	)			(51,299	)			(50,178	)
Cash		84,222				72,378				68,354				66,813				76,395
Cash value of life insurance		37,799				37,410				37,065				36,732				37,762
Other assets		237,135				215,032				217,649				215,460				226,247
Goodwill		155,211				155,211				155,211				155,211				155,211
Other intangible assets		5,209				5,829				6,505				7,180				7,886
Premises and equipment, net		92,129				90,939				90,763				92,805				93,413
Interest receivable		27,344				30,377				29,015				29,733				28,758
Total non-interest earning assets		586,739				555,255				553,265				552,635				575,494
Total assets	$	6,591,145			$	6,574,160			$	6,564,216			$	6,436,611			$	6,712,497
Liabilities
Savings and money market deposits	$	3,291,751			$	3,195,553			$	3,119,034			$	3,094,231			$	3,198,332
Time deposits		1,080,445				1,104,316				1,163,807				1,102,478				1,199,681
Borrowings		150,589				153,707				159,825				160,118				160,206
Repurchase agreements		23,986				69,278				66,004				88,468				86,966
Subordinated notes		98,366				98,318				98,262				98,215				154,011
Junior subordinated debentures issued to capital trusts		57,838				57,789				57,740				57,688				57,636
Total interest earning liabilities		4,702,975				4,678,961				4,664,672				4,601,198				4,856,832
Non-interest bearing deposits		1,109,178				1,100,355				1,139,466				1,078,708				1,122,888
Interest payable		6,487				10,862				8,537				12,892				12,395
Other liabilities		73,202				57,793				52,514				55,562				59,611
Total liabilities		5,891,842				5,847,971				5,865,189				5,748,360				6,051,726
Stockholders' Equity
Preferred stock		-				-				-				-				-
Common stock		-				-				-				-				-
Additional paid-in capital		461,298				460,610				459,799				459,243				458,734
Retained earnings		310,017				289,594				272,941				255,004				236,312
Accumulated other comprehensive (loss)		(72,012	)			(24,015	)			(33,713	)			(25,996	)			(34,275	)
Total stockholders' equity		699,303				726,189				699,027				688,251				660,771
Total liabilities and stockholders' equity	$	6,591,145			$	6,574,160			$	6,564,216			$	6,436,611			$	6,712,497

	Loans and Deposits
	(Dollars in Thousands, Unaudited)
	September 30,		June 30,		March 31,		December 31,		September 30,		% Change
	2026		2026		2026		2025		2025		Q3'26 vs Q2'26		Q3'26 vs Q3'25
Loans:
Commercial real estate	$	2,435,166		$	2,445,173		$	2,443,582		$	2,421,863		$	2,366,956		-	%		3	%
Commercial & Industrial		1,107,176			1,085,008			1,023,068			1,010,545			989,609		2	%		12	%
Total commercial		3,542,342			3,530,181			3,466,650			3,432,408			3,356,565		-	%		6	%
Residential Real estate		772,223			755,707			750,108			772,427			783,850		2	%		(1)%
Consumer		691,414			673,232			661,791			671,707			683,254		3	%		1	%
Total loans held for investment		5,005,979			4,959,120			4,878,549			4,876,542			4,823,669		1	%		4	%
Loans held for sale		3,523			5,147			9,821			9,778			1,921		(32)%		83	%
Total loans	$	5,009,502		$	4,964,267		$	4,888,370		$	4,886,320		$	4,825,590		1	%		4	%
Deposits:
Interest bearing deposits	$	1,748,378		$	1,664,367		$	1,611,795		$	1,639,857		$	1,715,471		5	%		2	%
Savings and money market deposits		1,543,373			1,531,186			1,507,239			1,454,374			1,482,861		1	%		4	%
Time deposits		1,080,445			1,104,316			1,163,807			1,102,478			1,199,681		(2)%		(10)%
Total Interest bearing deposits		4,372,196			4,299,869			4,282,841			4,196,709			4,398,013		2	%		(1)%
Non-interest bearing deposits
Non-interest bearing deposits		1,109,178			1,100,355			1,139,466			1,078,708			1,122,888		1	%		(1)%
Total deposits	$	5,481,374		$	5,400,224		$	5,422,307		$	5,275,417		$	5,520,901		2	%		(1)%

	Average Balance Sheet
	(Dollars in Thousands, Unaudited)
	Three Months Ended
	September 30, 2026	June 30, 2026	September 30, 2025
	Average Balance	Interest (4)(6)	Average Rate (4)	Average Balance	Interest (4)(6)	Average Rate (4)	Average Balance	Interest (4)(6)	Average Rate (4)
Assets
Interest earning assets
Interest earning deposits (incl. Fed Funds Sold)	$	158,544		$	1,493	3.74	%	$	101,650		$	936	3.69	%	$	185,665		$	2,062	4.41	%
Federal Home Loan Bank stock		7,418			188	10.05	%		15,834			259	6.56	%		45,549			862	7.51	%
Investment securities - taxable (1)		583,994			7,238	4.92	%		584,471			6,990	4.80	%		792,829			5,769	2.89	%
Investment securities - non-taxable (1)		314,702			3,253	4.10	%		314,064			3,270	4.18	%		763,488			5,799	3.01	%
Total investment securities		898,696			10,491	4.63	%		898,535			10,260	4.58	%		1,556,317			11,568	2.95	%
Loans receivable (2) (3)		4,949,830			79,959	6.41	%		4,916,799			78,140	6.37	%		4,979,211			79,941	6.37	%
Total interest earning assets		6,014,488			92,131	6.08	%		5,932,818			89,595	6.06	%		6,766,742			94,433	5.54	%
Non-interest earning assets
Cash and due from banks		71,519					71,692					83,616
Allowance for credit losses		(51,675	)				(51,106	)				(54,072	)
Other assets		539,582					535,339					501,590
Total average assets	$	6,573,914				$	6,488,743				$	7,297,876
Liabilities and Stockholders' Equity
Interest bearing liabilities
Interest bearing demand deposits	$	1,679,248		$	5,392	1.27	%	$	1,627,013		$	5,011	1.24	%	$	1,708,446		$	6,687	1.55	%
Saving and money market deposits		1,517,894			6,717	1.76	%		1,484,771			5,981	1.62	%		1,636,428			8,204	1.99	%
Time deposits		1,086,343			9,256	3.38	%		1,116,139			9,488	3.41	%		1,198,279			10,835	3.59	%
Total Deposits		4,283,485			21,365	1.98	%		4,227,923			20,480	1.94	%		4,543,153			25,726	2.25	%
Borrowings		150,083			1,464	3.87	%		150,118			1,435	3.83	%		601,889			5,535	3.65	%
Repurchase agreements		59,040			191	1.28	%		67,494			219	1.30	%		88,721			389	1.74	%
Subordinated notes		98,335			1,898	7.66	%		98,279			1,904	7.77	%		91,032			1,731	7.54	%
Junior subordinated debentures issued to capital trusts		57,807			992	6.81	%		57,758			980	6.81	%		57,602			1,069	7.36	%
Total interest bearing liabilities		4,648,750			25,910	2.21	%		4,601,572			25,018	2.18	%		5,382,397			34,450	2.54	%
Non-interest bearing liabilities
Demand deposits		1,131,714					1,117,113					1,120,719
Accrued interest payable and other liabilities		64,887					55,032					63,104
Stockholders' equity		728,563					715,026					731,657
Total average liabilities and stockholders' equity	$	6,573,914				$	6,488,743				$	7,297,876
Net FTE interest income (non-GAAP) (5)		$	66,221			$	64,577			$	59,983
Less FTE adjustments (4)			1,062				1,087				1,597
Net Interest Income		$	65,159			$	63,490			$	58,386
Net FTE interest margin (Non-GAAP) (4)(5)			4.37	%			4.37	%			3.52	%
(1) Securities balances represent daily average balances for the fair value of securities. The average rate is calculated based on the daily average balance for the amortized cost of securities.
(2) Includes fees on loans held for sale and held for investment. The inclusion of loan fees does not have a material effect on the average interest rate.
(3) Non-accruing loans for the purpose of the computation above are included in the daily average loan amounts outstanding. Loan totals are shown net of unearned income and deferred loan fees.
(4) Management believes fully taxable equivalent, or FTE, interest income is useful to investors in evaluating the Company's performance as a comparison of the returns between a tax-free investment and a taxable alternative. The Company adjusts interest income and average rates for tax-exempt loans and securities to an FTE basis utilizing a 21% tax rate.
(5) Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
(6) Includes dividend income on Federal Home Loan Bank stock

	Credit Quality
	(Dollars in Thousands Except Ratios, Unaudited)
	Quarter Ended
	September 30,		June 30,		March 31,		December 31,		September 30,		% Change
		2026				2026				2026				2025				2025			Q3'26 vs Q2'26		Q3'26 vs Q3'25
Non-accrual loans
Commercial	$	19,557			$	17,843			$	15,761			$	14,549			$	12,303			10	%		59	%
Residential Real estate		8,737				8,454				10,607				10,087				9,256			3	%		(6)%
Consumer		5,377				6,004				8,416				7,821				7,799			(10)%		(31)%
Total non-accrual loans		33,671				32,301				34,784				32,457				29,358			4	%		15	%
90 days and greater delinquent - accruing interest		2,256				2,632				2,211				2,489				1,608			(14)%		40	%
Total non-performing loans	$	35,927			$	34,933			$	36,995			$	34,946			$	30,966			3	%		16	%
Other real estate owned
Commercial	$	846			$	463			$	594			$	539			$	272			83	%		211	%
Residential Real estate		957				570				631				672				769			68	%		24	%
Consumer		2,647				3,633				1,875				480				480			(27)%		451	%
Total other real estate owned		4,450				4,666				3,100				1,691				1,521			(5)%		193	%
Other non-performing assets (1)	$	4,262			$	4,094			$	3,935			$	3,991			$	3,228			4	%		32	%
Total non-performing assets	$	44,639			$	43,693			$	44,030			$	40,628			$	35,715			2	%		25	%
Loan data:
Accruing 30 to 89 days past due loans	$	21,108			$	21,296			$	19,379			$	24,580			$	24,784			(1)%		(15)%
Substandard loans		60,271				64,564				63,419				59,365				63,236			(7)%		(5)%
Net charge-offs (recoveries)
Commercial	$	733			$	295			$	339			$	436			$	294			148	%		149	%
Residential Real estate		3				46				1				(25	)			19			(93)%		(84)%
Consumer		457				264				285				559				518			73	%		(12)%
Total net charge-offs	$	1,193			$	605			$	625			$	970			$	831			97	%		44	%
Allowance for credit losses
Commercial	$	35,431			$	36,122			$	34,997			$	35,473			$	34,390			(2)%		3	%
Residential Real estate		2,844				2,958				3,183				3,183				3,082			(4)%		(8)%
Consumer		14,035				12,841				13,117				12,643				12,706			9	%		10	%
Total allowance for credit losses	$	52,310			$	51,921			$	51,297			$	51,299			$	50,178			1	%		4	%
Credit quality ratios
Non-accrual loans to HFI loans		0.67	%			0.65	%			0.71	%			0.67	%			0.61	%
Non-performing assets to total assets		0.68	%			0.66	%			0.67	%			0.63	%			0.53	%
Annualized net charge-offs of average total loans		0.10	%			0.05	%			0.05	%			0.08	%			0.07	%
Allowance for credit losses to HFI loans		1.04	%			1.05	%			1.05	%			1.05	%			1.04	%
(1) Other non-performing assets consist of a single available for sale debt security placed on non-accrual status.

		Non–GAAP Reconciliation of Net Fully-Taxable Equivalent ("FTE") Interest Margin
		(Dollars in Thousands, Unaudited)
		Three Months Ended
		September 30,		June 30,		March 31,		December 31,		September 30,
			2026				2026				2026				2025				2025
Interest income (GAAP)	(A)	$	91,069			$	88,508			$	86,651			$	89,288			$	92,836
Taxable-equivalent adjustment:
Investment securities - tax exempt (1)			683				686				676				665				1,218
Loan receivable (2)			379				402				381				390				379
Interest income (non-GAAP)	(B)		92,131				89,596				87,708				90,343				94,433
Interest expense (GAAP)	(C)		25,910				25,018				24,411				25,812				34,450
Net interest income (GAAP)	(D) =(A) - (C)	$	65,159			$	63,490			$	62,240			$	63,476			$	58,386
Net FTE interest income (non-GAAP)	(E) = (B) - (C)	$	66,221			$	64,578			$	63,297			$	64,531			$	59,983
Average interest earning assets	(F)		6,014,488				5,932,818				5,984,972				5,967,328				6,766,742
Net FTE interest margin (non-GAAP)	(G) = (E*) / (F)		4.37	%			4.37	%			4.29	%			4.29	%			3.52	%
(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
		September 30,		June 30,		March 31,		December 31,		September 30,
			2026				2026				2026				2025				2025
Net income (loss) (GAAP)	(A)	$	28,667			$	24,908			$	26,168			$	26,921			$	(221,990	)
Average stockholders' equity	(B)	$	728,563			$	715,026			$	707,916			$	679,821			$	731,657
Average intangible assets	(C)		160,809				161,471				162,148				162,838				163,552
Average tangible equity (Non-GAAP)	(D) = (B) - (C)	$	567,754			$	553,555			$	545,768			$	516,983			$	568,105
Return on average tangible common equity ("ROACE") (non-GAAP)	(E) = (A*) / (D)		20.03	%			18.05	%			19.02	%			20.66	%		(155.03)%
*Annualized

		Non–GAAP Reconciliation of Tangible Common Equity to Tangible Assets
		(Dollars in Thousands, Unaudited)
		Three Months Ended
		September 30,		June 30,		March 31,		December 31,		September 30,
			2026				2026				2026				2025				2025
Total stockholders' equity (GAAP)	(A)	$	699,303			$	726,189			$	699,027			$	688,251			$	660,771
Intangible assets (end of period)	(B)		160,421				161,041				161,716				162,391				163,097
Total tangible common equity (non-GAAP)	(C) = (A) - (B)	$	538,882			$	565,148			$	537,311			$	525,860			$	497,674
Total assets (GAAP)	(D)	$	6,591,145			$	6,574,160			$	6,564,216			$	6,436,612			$	6,712,497
Intangible assets (end of period)	(B)		160,421				161,041				161,716				162,391				163,097
Total tangible assets (non-GAAP)	(E) = (D) - (B)	$	6,430,724			$	6,413,119			$	6,402,500			$	6,274,221			$	6,549,400
Tangible common equity to tangible assets (Non-GAAP)	(G) = (C) / (E)		8.38	%			8.81	%			8.39	%			8.38	%			7.60	%

		Non–GAAP Reconciliation of Tangible Book Value Per Share
		(Dollars in Thousands, Unaudited)
		Three Months Ended
		September 30,		June 30,		March 31,		December 31,		September 30,
		2026		2026		2026		2025		2025
Total stockholders' equity (GAAP)	(A)	$	699,303		$	726,189		$	699,027		$	688,251		$	660,771
Intangible assets (end of period)	(B)		160,421			161,041			161,716			162,391			163,097
Total tangible common equity (non-GAAP)	(C) = (A) - (B)	$	538,882		$	565,148		$	537,311		$	525,860		$	497,674
Common shares outstanding	(D)		51,110,798			51,093,048			51,056,888			50,978,030			50,970,530
Tangible book value per common share (non-GAAP)	(E) = (C) / (D)	$	10.54		$	11.06		$	10.52		$	10.32		$	9.76

¹ Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
² Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
³ Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

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