Risk Factors Update Summary

• Decrease in collateral dependent loans from $38 million to $17 million for December 31, 2023.
• The Bylaws now specify the power of the Executive Committee to issue securities, set terms, and file statements. This change could impact the company's financial structure significantly.
• FASB issued ASU No. 2023-07, requiring enhanced disclosures about segment expenses, impacting all public entities starting after December 15, 2023.
• Non-core expenses increased by $112.7 million, primarily from early retirement and severance costs.
• Net loans increased by $500 million from $11.78 billion to $12.28 billion.
• Shareholders must suggest Director candidates in writing, including nominee details and qualifications.
• The Bylaws now require a two-thirds vote of the Board of Directors for removal of a Director, except when recommended by the Board. This change might result in more stable governance decisions.
• ASU No. 2023-09 enhances income tax disclosures, requiring specific categories in rate reconciliation and income taxes paid.
• Net income increased from $205,531 to $223,786, a significant rise of $18,255.
• The obligation payable under the post retirement plan increased from $2.3 million to $2.4 million.
• Decrease in commercial and industrial loans by $10.1 million and $9.0 million in 2022 and 2021.
• Allowance for credit losses decreased by $18 million from $223 million to $204 million.
• Defined benefit plan assets increased from $77,534 to $94,588, a substantial rise.
• Interest rate swaps increased from $355,947 to $1,393,813 in other assets, a significant rise.
• Shift from "continuation" to "resurgence" highlights ongoing risks of infectious disease outbreaks.
• Adjusted Diluted Earnings Per Common Share - non-GAAP decreased from $4.20 to $3.89.
• Adjusted Net Income Available to Common Stockholders decreased from $243.4 million to $231.5 million.
• Total stockholders' equity rose from $2,247,713 to $2,034,770, a decrease of $212,943.
• Post retirement plan expense decreased from $53,000 to $44,000 in 2023.
• Level One acquisition details added, including the merger with Level One Bancorp, Inc. and the issuance of shares.
• Average Diluted Common Shares Outstanding increased from 57.95 thousand to 59.49 thousand.
• Total deposits increased by $1.44 billion from $14.38 billion to $15.82 billion.
• The Bylaws now allow the Board of Directors to fix a record date for determining shareholders entitled to receive dividends or other benefits. This change clarifies shareholder entitlements.
• The Corporation may issue new certificates without a bond under certain circumstances.
• Benefit obligation at the end of the year increased from $55,761 to $55,764, a notable change.
• Tangible Common Equity to Tangible Assets increased from 7.31% to 8.40%.
• Increase in net charge-offs by $2.7 million for the twelve months ended December 31, 2023.
• Derivative assets increased from $79,379 to $93,036, showing a significant rise.
• Addition of "an" and "any" expands risk factors to cover broader infectious disease scenarios.
• Forward contracts related to mortgage loans for sale increased from 14 to 25, a notable change.
• Reduction in allowance for credit losses by $9 million, primarily due to $16.6 million on PCD loans.
• Changes in investment securities holdings, with significant increases in U.S. Government-sponsored mortgage-backed securities and corporate obligations.
• Change from "epidemic" to "pandemic" increases the severity of potential health crises.
• Interest income increased from $605 to $893, a notable increase of $288.
• Goodwill increased by $127 million from $545 million to $712 million.
• Shareholders must provide timely notice for proposing business at annual meetings, with specific deadlines.
• Tangible book value - common decreased from $21.45 to $25.06.
• Interest rate lock commitments rose from 5 to 22, indicating increased commitments.
• Derivative liabilities increased from $79,008 to $92,770, indicating a notable change.
• Diluted Earnings Per Common Share - GAAP decreased from $3.81 to $3.73.
• Level 1 plan assets increased from $74 million to $76.8 million as of December 31, 2023.
• Interest expense rose from $84 to $348, a significant increase of $264.
• Increase in deposits by $1.7 billion from December 31, 2021, with $1.9 billion from the Level One acquisition.
• Federal Home Loan Bank advances decreased by $111 million from $823 million to $712 million.
• Loan portfolio changes show increases in past due loans, notably in commercial real estate and residential portfolios.
• Non-accrual loans reclassified, with notable increases in non-accrual loans in commercial and industrial, real estate, and residential loan categories.
• Subordinated debentures and term loans increased by $32.7 million from $120 million to $152.7 million.
• Correction of a prior period error understating assets and liabilities by $96.4 million and $63.9 million.
• Net interest income after provision for credit losses increased from $503 to $541, a rise of $38.
• Gross gains and losses on sales and redemptions of investment securities show a decrease in net gains for the year.
• Interest-bearing deposits decreased by $10 million from $436 million to $426 million.
• Noninterest income increased from $105 to $107, a slight increase of $2.
• Issuance of notice to redeem $40.0 million in principal of Subordinated Debt in the first quarter of 2024.
• Noninterest expenses increased from $355 to $388, a rise of $33.