Risk Factors Update Summary

• Cumulative effect adjustment from the adoption of ASU 2022 - 02 (TDR), net of tax. This adjustment resulted in a $544 million decrease in net income.
• Policy on Recoupment of Incentive Compensation adopted, effective October 26, 2023, impacting all Executives.
• Allowance for loan losses as a percentage of loans at the end of the year decreased from 0.82% to 0.73%.
• Net interest income increased by $43 million in 2023 compared to 2022, primarily due to a $3.6 billion increase in average loans.
• Derivative assets increased from $275.7 million to $296.8 million in 2023.
• Increase in prepayment speeds from 90% to 91% may impact mortgage loan portfolio.
• Total unrecognized compensation cost increased from $22.1 million to $38 million.
• Total non-interest income decreased by $125.1 million in 2023 compared to 2022.
• The maximum number of performance-based shares attained increased from 800 to 815.
• Net income increased from $509.7 million in 2022 to $622.6 million in 2023.
• Recoupment required for Financial Restatement, regardless of fault, covering Incentive-Based Compensation.
• Total non-interest expense increased by $16.8 million in 2023 compared to 2022.
• Goodwill for the wealth management unit increased by $2.6 million due to an acquisition.
• Total available-for-sale securities increased from $3.5 billion to $3.98 billion.
• Obligation to issue common stock to participants increased from 8,638 to 410 shares.
• Total commercial real estate loans increased from $9,950,947 in 2022 to $11,344,164 in 2023.
• Amended Credit Agreement dated December 12, 2022, with lenders and Wells Fargo Bank. This change may impact financial obligations significantly.
• Increase in cost of servicing from $343 to $393 per loan may affect profitability.
• Net charge-offs as a percentage of the provision for credit losses increased from 0.06% to 0.11%.
• Provision for credit losses increased significantly in 2023, totaling $114.4 million compared to $78.6 million in 2022.
• The allowance for credit losses increased from $270,173 to $344,235. This change might indicate higher expected credit losses.
• The allowance for credit losses increased significantly from $299.7 million in 2021 to $427.6 million in 2023.
• Mortgage banking revenue decreased by $72.1 million in 2023 compared to 2022.
• Non-accrual loans decreased from $110,597 in 2022 to $78,709 in 2023.
• First Amendment to Credit Agreement dated July 17, 2023, with lenders and Wells Fargo Bank. This change could affect financial terms.
• Decrease in derivative assets from $711 million to $510 million could impact financial positions.
• Specialty finance segment's goodwill increased by $1.6 million in 2023 due to foreign currency adjustments.
• Losses increased from 25 to 39. This change might result in increased risk exposure.
• Allowance for loan and unfunded loan-related commitment losses as a percentage of loans at the end of the year increased from 0.64% to 0.73%.
• Net charge-offs rose from $20.3 million in 2022 to $45.5 million in 2023.
• Mortgage servicing rights decreased by $38.8 million in 2023 compared to 2022.
• Trust and asset management fees decreased by $3 million in 2023 compared to 2022.
• Recoupment applies to all compensation tied to financial measures, excluding non-financial events.
• Stock-based compensation expense increased from $31.7 million in 2022 to $33.5 million in 2023.
• Total held-to-maturity securities increased from $3.22 billion to $3.64 billion.
• Cash dividends paid decreased from $360 million to $145 million in 2023.
• Mortgage banking revenue decreased by $117.3 million in 2023 compared to 2022, primarily due to unfavorable fair value adjustments of MSRs.
• The actual tax benefit increased from $580,000 to $1.8 million in 2023.
• Total non-performing loans decreased from $100,697 in 2022 to $74,438 in 2023.
• Non-performing loans increased from $74 million in 2021 to $139 million in 2023.
• Amortization of premium on securities decreased from $10.9 million in 2022 to $1.2 million in 2023.
• Total deposits at December 31, 2023, were $45.4 billion, increasing by $2.5 billion compared to $42.9 billion at December 31, 2022.
• Year-end total loans increased from $39,196,485 to $42,131,831.
• Non-interest expense increased by $135.2 million in 2023, primarily driven by higher software, salary, and equipment expenses.
• Production revenue decreased by $3.1 million in 2023 compared to 2022.
• Second Amendment to Credit Agreement dated September 15, 2020, with lenders and Wells Fargo Bank. This change may have financial implications.
• Employee Stock Purchase Plan expenses increased from $16 million to $19 million in 2023.
• Total acquisition-related intangible assets increased by $6,201,000 from $83,398,000 to $89,599,000.
• Salaries and employee benefits increased by $20.3 million in 2023 compared to 2022.
• Loans, net of unearned income, increased from $39.2 billion to $42.1 billion.
• The number of equity security holders decreased from approximately 1,678 in 2023 to 770 in 2024.
• Total average loans increased by $3.6 billion in 2023 compared to 2022, reflecting growth in the loan portfolio.
• Decrease in interest-bearing deposits with banks, net, from $91.3 million decrease in 2022 to $3.4 million increase in 2023.
• Wealth management segment's customer list and other intangibles increased from $20,430,000 to $26,430,000.
• Increase in loans, net, decreased from a $4.3 billion increase in 2022 to a $3.3 billion decrease in 2023.
• Net interest margin increased to 3.66% in 2023 compared to 3.15% in 2022, driven by higher yields on loans.
• Total deposits increased by $2,494,626,000 from $42,902,544,000 to $45,397,170,000.
• Commercial loans decreased from $12.5 billion in 2022 to $11.8 billion in 2023.
• Net interest income increased by $342.5 million in 2023 compared to 2022, primarily due to growth in average earning assets.
• The company's total assets increased from $45.1 billion in 2021 to $56.3 billion in 2023.
• Total revenue from contracts with customers increased by $2,724,000 from $217,719,000 to $220,443,000.
• Net cash provided by financing activities increased from $2.2 billion in 2022 to $2.4 billion in 2023.
• The company's net income rose from $292 million in 2020 to $622.6 million in 2023.
• Total interest-bearing deposits increased by $4.01 billion in 2023 compared to 2022, reaching $32.27 billion.
• Deferred income taxes decreased by $34,764,000 from $(19,707,000) to $22,057,000.
• Total interest-bearing liabilities increased by $4.99 billion in 2023 compared to 2022, totaling $35.91 billion.