Risk Factors Update Summary

• Cumulative effect adjustment from the adoption of ASU 2022 - 02 (TDR), net of tax. This change might result in a decrease of $544 million.
• Net interest income increased by $43 million in 2023 compared to 2022, primarily due to higher yields.
• Net charge-offs as a percentage of the provision for credit losses decreased from 0.94% to 0.73%.
• Increase in mortgage loans held-for-sale from $292.7 million to $299 million.
• Policy on Recoupment of Incentive Compensation adopted, effective October 26, 2023, impacting executives.
• Total available-for-sale securities increased from $3.0 billion to $3.5 billion.
• The Company increased its interest rate derivatives not designated as hedging instruments by $60.8 million.
• Mortgage banking revenue decreased by $72.1 million in 2023 compared to 2022.
• Provision for credit losses increased significantly from $78.6 million in 2022 to $114.4 million in 2023.
• Year-end total loans increased from $39,196,485 to $42,131,831.
• Recoupment required for erroneously awarded Incentive-Based Compensation following a Financial Restatement.
• Goodwill for the wealth management unit increased by $2.6 million due to an acquisition.
• Total commercial loans increased from $22,500,111 to $24,176,217, a significant rise of $1,676,106.
• Mortgage-backed securities increased from $2.7 billion to $3.3 billion.
• Amended and Restated Credit Agreement dated December 12, 2022, with lenders, increased to $10 million.
• Net income increased from $509,682 in 2022 to $622,626 in 2023, a significant rise of $112,944.
• Decrease in cost of servicing from $343 to $393 per loan.
• The Company added $50.5 million in commitments related to derivative financial instruments.
• The allowance for credit losses increased from $299.7 million in 2021 to $427.6 million in 2023.
• The number of equity security holders decreased from approximately 1,678 in 2023 to 770 in 2024.
• Mortgage loans held-for-sale decreased from $496.1 million in 2022 to $294.4 million in 2023.
• Stock-based compensation expense increased from $31,748 to $33,495, a change of $1,747.
• Increase in derivative assets from $275.7 million to $296.8 million.
• First Amendment to Credit Agreement dated July 17, 2023, increased borrowing capacity by $5 million.
• Allowance for loan losses as a percentage of loans at the end of the year increased from 0.71% to 0.82%.
• Non-accrual loans decreased from $110,597 to $78,709, a notable reduction of $31,888.
• Net charge-offs increased from $20.3 million in 2022 to $45.5 million in 2023.
• Specialty finance segment's goodwill increased to $526 million from $526,000 due to foreign currency adjustments.
• The carrying balance of PPP loans decreased from approximately $28 million in 2022 to $11.9 million in 2023.
• Non-interest expense increased by $135.2 million in 2023, primarily due to higher employee benefits and advertising costs.
• Commercial loans increased by $581 million, or 5%, from 2022 to 2023.
• The total assets increased from $45.1 billion in 2021 to $56.3 billion in 2023.
• Incentive-Based Compensation subject to recovery includes stock price, total shareholder return, and performance-based awards.
• The Company increased its total derivatives by $21.1 million, reaching $338.1 million.
• Total held-to-maturity securities increased from $3.2 billion to $3.9 billion.
• Second Amendment to Credit Agreement dated September 15, 2020, increased interest rate by 1%.
• Total non-interest income decreased by $125.1 million, or 21%, from 2022 to 2023.
• Mortgage banking revenue decreased by $26.9 million in 2023 compared to 2022, impacted by fair value adjustments.
• Commercial loans decreased from $12.5 billion in 2022 to $11.8 billion in 2023.
• Wealth management segment's customer list and other intangibles increased to $630 million from $430 million.
• Non-performing loans increased from $74 million in 2021 to $139 million in 2023.
• The Company added $10.5 million in foreign currency derivatives with an aggregate notional amount.
• Total loans, net of unearned income, increased from $39.2 billion to $42.1 billion.
• Total non-performing loans decreased from $100,697 to $74,438, a decrease of $26,259.
• Amortization of premium on securities decreased from $10,881 to $2,236, a significant decrease of $8,645.
• Loans originated for sale decreased, resulting in lower mortgage banking revenue in 2023.
• The Company increased its total cash flow hedges by $6.7 million, totaling $36.7 million.
• Total non-interest expense increased by $44.7 million, or 4%, from 2022 to 2023.
• Decrease in interest-bearing deposits with banks, net, decreased from $(91,251) to $3,382, a change of $94,633.
• Total acquisition-related intangible assets increased to $89.6 million from $83.4 million.
• Commercial loans decreased from 32% to 30% of the loan mix.
• Increase in loans, net decreased from $(3,303,303) to $(4,320,225), a decrease of $1,016,922.
• The Company added $3.6 million in trading gains related to commodity contracts.
• Estimated amortization decreased to $301 million in 2024 from $658 million in 2023.
• Net charge-offs increased to $45 million in 2023, compared to $20 million in 2022, impacting provision for credit losses.
• Home equity loans increased from $332 million to $343 million.
• Total deposits increased to $45.4 billion from $42.9 billion, with non-interest-bearing deposits decreasing to 23% from 34%.
• Net cash used for investing activities decreased from $(3,490,769) to $(5,928,859), a decrease of $2,438,090.
• Total average loans increased by $3.6 billion in 2023, contributing to higher net interest income.
• Premium finance receivables for property & casualty increased from $5.8 billion to $6.9 billion.
• The Company increased its net credit exposure by $14.9 million, reaching $265.2 million.
• Total FHLB advances increased to $2.3 billion from $1.2 billion, with varying put or call dates over the next 12 months.