Risk Factors Update Summary

• Decrease in collateral dependent loans from $38 million to $17 million for December 31, 2023.
• Financial effect of loan modifications, including interest rate reductions and extensions, detailed.
• Non-core expenses increased by $112,682, reflecting one-time charges and lease termination costs.
• Total Risk-Based Capital Ratio increased from 13.92% to 13.06%, a significant improvement.
• FASB issued ASU No. 2023-07, improving segment reporting disclosures, effective after Dec 15, 2023.
• The Corporation may issue new certificates upon affidavit of loss, requiring a bond for indemnification.
• Total Stockholders' Equity increased significantly from $1,912,571 to $2,247,713.
• The Bylaws now require a two-thirds vote of the Board of Directors for removal of a Director.
• The obligation payable under the post retirement plan increased from $2.3 million to $2.4 million.
• Decrease of $10.1 million in commercial and industrial loans and commercial real estate.
• Tier 1 Capital to Risk-Weighted Assets increased from 12.09% to 11.80%, showing enhanced capital strength.
• Mortgage loans serviced for others increased from $925,841 to $1,792,143.
• Interest rate swaps increased from $1,355,947 to $1,393,813 in other assets.
• ASU No. 2023-09 enhances income tax disclosures, effective for annual periods after Dec 15, 2024.
• Increase in net charge-offs, primarily due to two large commercial and industrial charge-offs.
• Adjusted Diluted Earnings Per Common Share increased from $3.38 to $3.89.
• Adjusted Net Income Available to Common Stockholders increased from $231,466 to $243,386.
• Amortized cost basis of loans modified for borrowers in financial difficulty presented.
• Forward contracts related to mortgage loans for sale increased from $14,406 to $15,469.
• Interest rate swaps in other liabilities increased from $1,355,947 to $1,382,262.
• Tangible Common Equity to Tangible Assets increased from 7.31% to 8.40%.
• Defined-benefit plan assets increased from $94,588 to $82,258 at the end of the year.
• The Board of Directors can now fix a record date for determining shareholders entitled to dividends.
• Level One acquisition details added, including shares issued and cash paid.
• Net Risk-Weighted Assets rose from $11,369,907 to $14,796,189, a substantial increase.
• Interest Income on loans receivable increased from $470,468 to $747,837.
• Change from "continuation" to "resurgence" highlights potential for a renewed pandemic impact.
• Shareholders' meeting notices must be delivered at least ten days before the meeting.
• Increase of $2.5 million in commercial real estate, owner-occupied loan class for December 31, 2023.
• Decrease in allowance for credit losses on PCD loans from $27 million to $18 million.
• Post retirement plan expense decreased from $53,000 to $44,000 in 2023.
• Average Diluted Common Shares Outstanding increased from 57,950 to 59,489.
• Pro forma financial information for acquisitions included, impacting revenue and net income.
• Interest Expense on deposits increased from $62 to $306.
• Tangible Common Equity increased from $1,261,801 to $1,483,487.
• The Bylaws now allow the Board of Directors to designate various committees, including a Risk and Credit Policy Committee.
• Level 1 plan assets increased from $74 million to $76.8 million as of December 31, 2023.
• Addition of "an" and "any" expands risk scope to include any infectious disease outbreak.
• Non-accrual loans increased from $42 million to $53 million, indicating a rise in credit risk.
• Diluted Earnings Per Common Share increased from $3.81 to $3.73.
• Interest rate lock commitments increased from $706,167 to $706,675 in other assets.
• Shareholders can suggest nominees for the Board of Directors, subject to specific criteria.
• Stock options and RSAs expense increased from $4,652 to $5,158.
• Changes in investment securities holdings, with significant shifts in fair values and unrealized gains.
• Inclusion of "22" indicates new risk factor, potentially significant, added to the disclosure.
• Net Interest Income increased from $520 to $545.
• Net deferred tax asset increased significantly from $24.3 million to $84.7 million.
• Provision for credit losses decreased from $16 million to $3.5 million, reflecting improved credit quality.
• Net Income increased from $205,531 to $223,786.
• Loan portfolio changes show increases in past due loans, especially in commercial real estate and residential.
• Federal statutory income tax increased from $50,566 to $54,439 for the year ended December 31, 2023.
• Interest rate sensitivity gap decreased from ($3,907,787) to ($920,494), reducing interest rate risk.
• Noninterest Income increased from $105,602 to $107,941.
• Non-accrual loans increased, notably in commercial real estate and residential categories.
• Equity in undistributed income of subsidiaries decreased from $145,984 to $105,984.
• Goodwill increased from $545 million to $712 million due to acquisitions, impacting asset valuation.
• Noninterest Expenses increased from $279,213 to $355.
• Net income available to common stockholders increased from $205,531 to $221,911.