Origin Bancorp, Inc. Reports Earnings for Second Quarter 2024

RUSTON, La., July 24, 2024 (GLOBE NEWSWIRE) — Origin Bancorp, Inc. (NYSE: OBK) (“Origin,” “we,” “our” or the “Company”), the holding company for Origin Bank (the “Bank”), today announced net income of $21.0 million, or $0.67 diluted earnings per share for the quarter ended June 30, 2024, compared to net income of $22.6 million, or $0.73 diluted earnings per share, for the quarter ended March 31, 2024. Pre-tax, pre-provision (“PTPP”)⁽¹⁾ earnings was $32.0 million for the quarter ended June 30, 2024, compared to $31.9 million for the linked quarter.

“I am pleased with the performance of the Company and extremely proud of our bankers who continue to build and expand relationships throughout our dynamic markets,” said Drake Mills, chairman, president and CEO of Origin Bancorp, Inc. “I have a great deal of confidence in our team and our ability to deliver long-term value to our employees, customers, communities and shareholders.”

^{(1)  PTPP earnings is a non-GAAP financial measure, please see the last few pages of this document for a reconciliation of this alternative financial measure to its comparable GAAP measure.}

Financial Highlights

• Total loans held for investment (“LHFI”) were $7.96 billion at June 30, 2024, reflecting an increase of $59.1 million, or 0.7%, compared to March 31, 2024. Mortgage warehouse lines of credit (“MW LOC”) were $506.5 million at June 30, 2024, reflecting an increase of $105.5 million, or 26.3%, compared to March 31, 2024.
• Total deposits were $8.51 billion at June 30, 2024, reflecting an increase of $5.4 million, or 0.1%, compared to March 31, 2024.
• Noninterest income was $22.5 million for the quarter ended June 30, 2024, reflecting an increase of $5.2 million, or 30.2%, compared to the linked quarter, and was at the highest level in our history since we became a publicly traded Company in 2018.
• Our book value per common share was $35.23 as of June 30, 2024, reflecting an increase of $0.44, or 1.3%, compared to March 31, 2024. Tangible book value per common share⁽¹⁾ was $29.77 at June 30, 2024, reflecting an increase of $0.53, or 1.8%, compared to March 31, 2024.
• Stockholders’ equity was $1.10 billion at June 30, 2024, reflecting an increase of $17.0 million, or 1.6%, compared to March 31, 2024.
• At June 30, 2024, and March 31, 2024, Company level common equity Tier 1 capital to risk-weighted assets was 12.15%, and 11.97%, respectively, the Tier 1 leverage ratio was 10.70% and 10.66%, respectively, and the total capital ratio was 15.16% and 14.98%, respectively. Tangible common equity to tangible assets⁽¹⁾ was 9.47% at June 30, 2024, compared to 9.33% at March 31, 2024.

^{(1)  Tangible book value per common share and tangible common equity to tangible assets are non-GAAP financial measures. Please see the last few pages of this document for a reconciliation of these alternative financial measures to their comparable GAAP measures.}

Results of Operations for the Three Months Ended June 30, 2024

Net Interest Income and Net Interest Margin

Net interest income for the quarter ended June 30, 2024, was $73.9 million, an increase of $567,000, or 0.8%, compared to the linked quarter, primarily due to a $3.1 million net increase in total interest and dividend income, $2.7 million of which was driven by net higher average loan balances during the current quarter, compared to the linked quarter. The increase was partially offset by a $2.5 million net increase in total interest expense, $1.8 million of which was due to increase in interest rates, and $721,000 of which was due to higher average interest-bearing liabilities balances.

Net increases in average LHFI principal balances drove interest income higher by $2.7 million during the current quarter compared to the linked quarter, primarily driven by growth in MW LOCs, which contributed $2.4 million of the $2.7 million increase. Higher interest rates and higher average balances on savings and interest-bearing transaction accounts contributed increases of $1.4 million and $1.1 million, respectively, to deposit interest expense compared to the linked quarter. The average rate on interest-bearing deposits increased to 3.95% for the quarter ended June 30, 2024, compared to 3.85% for the quarter ended March 31, 2024. The average savings and interest-bearing transaction account balances increased $121.1 million to $5.13 billion for the quarter ended June 30, 2024, from $5.01 billion for the linked quarter, primarily due to increases of $82.4 million and $34.8 million in average interest-bearing demand brokered deposits and money market deposit balances, respectively.

The Federal Reserve Board sets various benchmark rates, including the federal funds rate, and thereby influences the general market rates of interest, including the loan and deposit rates offered by financial institutions. The federal funds target rate range was last changed on July 26, 2023, to 5.25% to 5.50%. In June 2024, the Federal Reserve left the current federal funds rate unchanged at this 23-year high for the seventh consecutive meeting. As we navigate through stabilizing rate conditions, our strategic focus continues to align with offering attractive returns to our depositors while closely monitoring economic indicators and federal funds rate projections for informed decision-making.

Recently, we identified certain questioned activity involving a single banker in our East Texas market. The activity involved the banker, who has since been terminated, facilitating advances in and among certain customer loans and accounts that, in one or more instances, may not have been appropriately documented. In an effort to quantify the full extent of the activity, we have been working with our customers impacted by the activity in order to identify the amounts that may be owed to us, as well as the amounts that may be owed by us. During the quarter, several of the relationships impacted by the activity were placed on non-accrual, resulting in a reversal of $1.2 million of accrued interest which negatively impacted the fully tax equivalent net interest margin (“NIM-FTE”) by five basis points.

The NIM-FTE was 3.17% for the quarter ended June 30, 2024, representing a two basis point decrease and a one basis point increase compared to the linked quarter and the prior year same quarter, respectively. The yield earned on interest-earning assets for the quarter ended June 30, 2024, was 6.04%, an increase of five and 54 basis points compared to the linked quarter and the prior year same quarter, respectively. The average rate paid on total interest-bearing liabilities for the quarter ended June 30, 2024, was 3.98%, representing a 10 and a 68 basis point increase compared to the linked quarter and the prior year same quarter, respectively. We experienced margin compression this quarter, reflecting decreases of five and 14 basis points, respectively, when comparing the current quarter to the linked quarter and when comparing the current quarter to the prior year same quarter. However, as discussed above, had we not experienced the reversal of the $1.2 million of accrued interest during the current quarter, our NIM-FTE would have been 3.22%, reflecting a three basis point increase compared to the linked quarter, and indicating no margin compression occurring this quarter.

Credit Quality

The table below includes key credit quality information:

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⁽¹⁾   Please see the Loan Data schedule at the back of this document for additional information.
⁽²⁾   The ALCL to total LHFI, adjusted, is calculated by excluding the ALCL for MW LOC loans from the total LHFI ALCL in the numerator and excluding the MW LOC loans from the LHFI in the denominator. Due to their low-risk profile, MW LOC loans require a disproportionately low allocation of the ALCL.

While we continue to experience normalization of our credit metrics within our loan portfolio, the primary increases in our past dues, level of classified, and nonperforming loans for the current quarter resulted from certain questioned activity involving a single banker in our East Texas market. As mentioned previously, in an effort to quantify the full extent of the activity, we have been working with our impacted customers in order to identify the amounts that may be owed to us, as well as the amounts that may be owed by us. One of the relationships impacted by this activity filed a lawsuit against the bank. While this relationship has chosen to file a lawsuit, other relationships have continued to work with us, with certain relationships acknowledging amounts owed and either paying the amounts in full or entering into short-term agreements for repayment. Additionally, we have notified our insurance providers of anticipated claims resulting from this activity, but there is no consideration in this quarter’s financial results of any potential insurance recoveries. Our investigation remains ongoing, and we are also working with an outside forensic accounting firm to confirm the bank’s identification and reconciliation of the activity. At this time, we believe that any ultimate loss arising from the situation will not be material to our financial position.

Nonperforming LHFI increased $35.4 million for the quarter, and nonperforming LHFI to LHFI increased to 0.95% compared to 0.51% for the linked quarter. Classified loans increased $34.0 million to $118.3 million at June 30, 2024, reflecting 1.49% as a percentage of total LHFI, up 42 basis points from the linked quarter. The $35.4 million increase in nonperforming loans was primarily driven by $33.0 million, or five loan relationships, related to or impacted by, the questioned loan activity described above.

We recorded a credit loss provision of $5.2 million during the quarter ended June 30, 2024, compared to $3.0 million for the linked quarter. Our provision for loan credit losses was $5.4 million for the quarter ended June 30, 2024, compared to $4.1 million for the linked quarter. The $1.3 million net increase in the provision for loan credit losses was driven primarily by a $4.1 million provision on impacted relationships and a $3.2 million provision related to the activity involving the former East Texas banker.

The ALCL to nonperforming LHFI decreased to 133.0% at June 30, 2024, compared to 243.3% at March 31, 2024. Quarterly net charge-offs increased to $2.9 million from $2.6 million for the linked quarter, primarily due to higher recoveries in the linked quarter.

Noninterest Income

Noninterest income for the quarter ended June 30, 2024, was $22.5 million, an increase of $5.2 million, or 30.2%, from the linked quarter. The increase from the linked quarter was primarily driven by increases of $5.2 million and $881,000 in the change in fair value of equity investments and other income, respectively, which was partially offset by a decrease of $1.1 million in insurance commission and fee income.

The increase in change in fair value of equity investments was primarily due to a $5.2 million positive valuation adjustment on a non-marketable equity security in the current quarter with no comparable amount realized during the linked quarter.

The increase in other income was primarily due to an increase of $818,000 in gain on sale of bank property recognized in the current quarter.

The decrease in insurance commission and fee income was primarily driven by an increase in annual contingency fee income recognized during the linked quarter, primarily due to the seasonality of the portfolio. Looking at a year over year quarterly change, insurance commission and fee income increased $480,000, or 7.8%, compared to the quarter ended June 30, 2023.

Noninterest Expense

Noninterest expense for the quarter ended June 30, 2024, was $64.4 million, an increase of $5.7 million, or 9.7% from the linked quarter. The increase was primarily driven by increases of $2.3 million and $1.6 million in salaries and employee benefits and other noninterest expenses, respectively.

The increase in salaries and employee benefits was mainly driven by increases of $1.2 million and $683,000 in incentive compensation bonus and salaries expenses, respectively. The increase of $1.2 million was mainly due to a release of accrual related to employee performance bonuses from 2023, which occurred during the quarter ended March 31, 2024, but not in the current quarter. The increase of $683,000 was attributed to a combination of annual cost of living adjustments and raises made on March 1, 2024.

The increase in other noninterest expense resulted from recognizing contingent liabilities totaling approximately $1.2 million related to the certain questioned activity involving a single banker in our East Texas market, as described above. We have notified our insurance providers of anticipated claims resulting from this activity, but there is no consideration in this quarter’s financial results of any potential insurance recoveries.

Financial Condition

Loans

• Total LHFI at June 30, 2024, were $7.96 billion, an increase of $59.1 million, or 0.7%, from $7.90 billion at March 31, 2024, and an increase of $336.5 million, or 4.4%, compared to June 30, 2023.
• The increase was primarily due to growth in MW LOC and commercial real estate loans of $105.5 million and $102.2 million, respectively, partially offset by decline in construction/land/land development of $151.2 million compared to the linked quarter.

Securities

• Total securities at June 30, 2024, were $1.18 billion, a decrease of $31.2 million, or 2.6%, compared to the linked quarter and a decrease of $374.9 million, or 24.1%, compared to June 30, 2023.
• The decrease was primarily due to maturities and calls, as well as normal principal repayments.
• Accumulated other comprehensive loss, net of taxes, primarily associated with the available for sale (“AFS”) portfolio, was $127.2 million at June 30, 2024, an increase of $2.3 million, or 1.8%, from the linked quarter.
• The weighted average effective duration for the total securities portfolio was 4.28 years as of June 30, 2024, compared to 4.34 years as of March 31, 2024.

Deposits

• Total deposits at June 30, 2024, were $8.51 billion, an increase of $5.4 million, or 0.1%, compared to the linked quarter, and represented an increase of $20.8 million, or 0.2%, from June 30, 2023.
• The increase in the current quarter compared to the linked quarter was primarily due to increases of $39.7 million and $2.6 million in brokered (which includes both brokered time and brokered interest-bearing demand) deposits and saving deposits, respectively. These increases were partially offset by decreases of $20.4 million, $8.3 million and $8.1 million in noninterest-bearing demand deposits, interest-bearing demand deposits and time deposits, respectively. We saw a continuation of the declining trend in noninterest-bearing deposit balances that began in the fourth quarter of 2022, although at a slower pace than prior periods, as rates paid on deposit balances typically lag market interest rates and have continued to rise, while market interest rates have stabilized.
• At June 30, 2024, noninterest-bearing deposits as a percentage of total deposits were 21.9%, compared to 22.2% and 25.0% at March 31, 2024, and June 30, 2023, respectively.

Borrowings

• FHLB advances and other borrowings at June 30, 2024, were $40.7 million, an increase of $27.6 million, or 209.6%, compared to the linked quarter and represented a decrease of $302.1 million, or 88.1%, from June 30, 2023.
• Total debt (representing FHLB advances and other borrowings plus subordinated debt) was $200.5 million at June 30, 2024, and represented an increase of $26.7 million, or 15.3%, compared to the linked quarter due to an increase in FHLB advances during the current quarter.

Stockholders’ Equity

• Stockholders’ equity was $1.10 billion at June 30, 2024, an increase of $17.0 million, or 1.6%, compared to $1.08 billion at March 31, 2024, and an increase of $98.0 million, or 9.8%, compared to June 30, 2023.
• The increase in stockholders’ equity from the linked quarter is primarily due to net income of $21.0 million, partially offset by dividends declared of $4.7 million during the current quarter.

Conference Call

Origin will hold a conference call to discuss its second quarter 2024 results on Thursday, July 25, 2024, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time). To participate in the live conference call, please dial +1 (929) 272-1574 (U.S. Local / International 1); +1 (857) 999-3259 (U.S. Local / International 2); +1 (800) 528-1066 (U.S. Toll Free), enter Conference ID: 09209 and request to be joined into the Origin Bancorp, Inc. (OBK) call. A simultaneous audio-only webcast may be accessed via Origin’s website at www.origin.bank under the investor relations, News & Events, Events & Presentations link or directly by visiting https://dealroadshow.com/e/ORIGINQ224.

If you are unable to participate during the live webcast, the webcast will be archived on the Investor Relations section of Origin’s website at www.origin.bank, under Investor Relations, News & Events, Events & Presentations.

About Origin

Origin Bancorp, Inc. is a financial holding company headquartered in Ruston, Louisiana. Origin’s wholly owned bank subsidiary, Origin Bank, was founded in 1912 in Choudrant, Louisiana. Deeply rooted in Origin’s history is a culture committed to providing personalized, relationship banking to businesses, municipalities, and personal clients to enrich the lives of the people in the communities it serves. Origin provides a broad range of financial services and currently has over 60 locations from Dallas/Fort Worth, East Texas and Houston, across North Louisiana and into Mississippi. Locations in South Alabama and the Florida Panhandle are planned for 2024. For more information, visit www.origin.bank.

Non-GAAP Financial Measures

Origin reports its results in accordance with generally accepted accounting principles in the United States of America (“GAAP”). However, management believes that certain supplemental non-GAAP financial measures may provide meaningful information to investors that is useful in understanding Origin’s results of operations and underlying trends in its business. However, non-GAAP financial measures are supplemental and should be viewed in addition to, and not as an alternative for, Origin’s reported results prepared in accordance with GAAP. The following are the non-GAAP measures used in this release: PTPP earnings, adjusted NIM-FTE, PTPP ROAA, tangible book value per common share, adjusted tangible book value per common share, tangible common equity to tangible assets, ROATCE, and core efficiency ratio.

Please see the last few pages of this release for reconciliations of non-GAAP measures to the most directly comparable financial measures calculated in accordance with GAAP.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information regarding Origin’s future financial performance, business and growth strategies, projected plans and objectives, and any expected purchases of its outstanding common stock, and related transactions and other projections based on macroeconomic and industry trends, including changes to interest rates by the Federal Reserve and the resulting impact on Origin’s results of operations, estimated forbearance amounts and expectations regarding the Company’s liquidity, including in connection with advances obtained from the FHLB, which are all subject to change and may be inherently unreliable due to the multiple factors that impact broader economic and industry trends, and any such changes may be material. Such forward-looking statements are based on various facts and derived utilizing important assumptions and current expectations, estimates and projections about Origin and its subsidiaries, any of which may change over time and some of which may be beyond Origin’s control. Statements or statistics preceded by, followed by or that otherwise include the words “assumes,” “anticipates,” “believes,” “estimates,” “expects,” “foresees,” “intends,” “plans,” “projects,” and similar expressions or future or conditional verbs such as “could,” “may,” “might,” “should,” “will,” and “would” and variations of such terms are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing words. Further, certain factors that could affect Origin’s future results and cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to: potential impacts of adverse developments in the banking industry highlighted by high-profile bank failures, including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto; the impact of current and future economic conditions generally and in the financial services industry, nationally and within Origin’s primary market areas, including the effects of declines in the real estate market, high unemployment rates, inflationary pressures, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers and changes to customer and client behavior as a result of the foregoing; potential reductions in benchmark interest rates and the resulting impacts on net interest income; deterioration of Origin’s asset quality; factors that can impact the performance of Origin’s loan portfolio, including real estate values and liquidity in Origin’s primary market areas; the financial health of Origin’s commercial borrowers and the success of construction projects that Origin finances; changes in the value of collateral securing Origin’s loans; developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; Origin’s ability to anticipate interest rate changes and manage interest rate risk, (including the impact of higher interest rates on macroeconomic conditions, competition, and the cost of doing business and the impact of prolonged elevated interest rates on our financial projections, models and guidance); the effectiveness of Origin’s risk management framework and quantitative models; Origin’s inability to receive dividends from Origin Bank and to service debt, pay dividends to Origin’s common stockholders, repurchase Origin’s shares of common stock and satisfy obligations as they become due; the impact of labor pressures; changes in Origin’s operation or expansion strategy or Origin’s ability to prudently manage its growth and execute its strategy; changes in management personnel; Origin’s ability to maintain important customer relationships, reputation or otherwise avoid liquidity risks; increasing costs as Origin grows deposits; operational risks associated with Origin’s business; significant turbulence or a disruption in the capital or financial markets and the effect of a fall in stock market prices on our investment securities; increased competition in the financial services industry, particularly from regional and national institutions, as well as from fintech companies; difficult market conditions and unfavorable economic trends in the United States generally, and particularly in the market areas in which Origin operates and in which its loans are concentrated; Origin’s level of nonperforming assets and the costs associated with resolving any problem loans including litigation and other costs; the credit risk associated with the substantial amount of commercial real estate, construction and land development, and commercial loans in Origin’s loan portfolio; changes in laws, rules, regulations, interpretations or policies relating to financial institutions, and potential expenses associated with complying with such regulations; periodic changes to the extensive body of accounting rules and best practices; further government intervention in the U.S. financial system; a deterioration of the credit rating for U.S. long-term sovereign debt or actions that the U.S. government may take to avoid exceeding the debt ceiling; a potential U.S. federal government shutdown and the resulting impacts; compliance with governmental and regulatory requirements, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and others relating to banking, consumer protection, securities, and tax matters; Origin’s ability to comply with applicable capital and liquidity requirements, including its ability to generate liquidity internally or raise capital on favorable terms, including continued access to the debt and equity capital markets; changes in the utility of Origin’s non-GAAP liquidity measurements and its underlying assumptions or estimates; possible changes in trade, monetary and fiscal policies, laws and regulations and other activities of governments, agencies and similar organizations; natural disasters and adverse weather events, acts of terrorism, an outbreak of hostilities (including the impacts related to or resulting from Russia’s military action in Ukraine or the conflict in Israel and surrounding areas, including the imposition of additional sanctions and export controls, as well as the broader impacts to financial markets and the global macroeconomic and geopolitical environments), regional or national protests and civil unrest (including any resulting branch closures or property damage), widespread illness or public health outbreaks or other international or domestic calamities, and other matters beyond Origin’s control; the impact of generative artificial intelligence; fraud or misconduct by internal or external actors (including Origin employees) which Origin may not be able to prevent, detect or mitigate, system failures, cybersecurity threats or security breaches and the cost of defending against them; Origin’s ability to maintain adequate internal controls over financial and non-financial reporting; and potential claims, damages, penalties, fines, costs and reputational damage resulting from pending or future litigation, regulatory proceedings and enforcement actions. For a discussion of these and other risks that may cause actual results to differ from expectations, please refer to the sections titled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in Origin’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission and any updates to those sections set forth in Origin’s subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if Origin’s underlying assumptions prove to be incorrect, actual results may differ materially from what Origin anticipates. Accordingly, you should not place undue reliance on any forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and Origin does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

New risks and uncertainties arise from time to time, and it is not possible for Origin to predict those events or how they may affect Origin. In addition, Origin cannot assess the impact of each factor on Origin’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements, expressed or implied, included in this communication are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that Origin or persons acting on Origin’s behalf may issue. Annualized, pro forma, adjusted, projected, and estimated numbers are used for illustrative purposes only, are not forecasts, and may not reflect actual results.

Contact:

Investor Relations
Chris Reigelman
318-497-3177
chris@origin.bank

Media Contact
Ryan Kilpatrick
318-232-7472
rkilpatrick@origin.bank

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^{(1)  PTPP earnings, PTPP ROAA, tangible book value per common share, adjusted tangible book value per common share, ROATCE, and core efficiency ratio are either non-GAAP financial measures or use a non-GAAP contributor in the formula. For a reconciliation of these alternative financial measures to their comparable GAAP measures, please see the last few pages of this release.
(2)  Adjusted NIM-FTE is a non-GAAP financial measure and is calculated by removing the $7,000, $2,000, $48,000 and $38,000 net purchase accounting amortization for the quarters ended June 30, 2024, March 31, 2024, December 31, 2023, and September 30, 2023, respectively, and the $530,000 net purchase accounting accretion from the net interest income for the quarter ended June 30, 2023.
(3)  Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.
(4)  June 30, 2024, ratios are estimated and calculated at the Company level, which is subject to the capital adequacy requirements of the Federal Reserve Board.}

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^{(1) PTPP earnings, PTPP ROAA, ROATCE, and core efficiency ratio are either non-GAAP financial measures or use a non-GAAP contributor in the formula. For a reconciliation of these alternative financial measures to their comparable GAAP measures, please see the last few pages of this release.
(2)  Adjusted NIM-FTE is a non-GAAP financial measure and is calculated for six months ended June 30, 2024, by removing the $9,000 net purchase accounting amortization from net interest income. And, for the six months ended June 30, 2023, by removing the $2.2 million net purchase accounting accretion from net interest income.
(3)  Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.}

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^{(1)   Includes multi-family real estate.
(2)   Past due LHFI are defined as loans 30 days or more past due.
(3)   The ALCL to total LHFI, adjusted is calculated by excluding the ALCL for MW LOC loans from the total LHFI ALCL in the numerator and excluding the MW LOC loans from the LHFI in the denominator. Due to their low-risk profile, MW LOC loans require a disproportionately low allocation of the ALCL.}

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^{(1)   Includes multi-family real estate.
(2)   In order to present pre-tax income and resulting yields on tax-exempt investments comparable to those on taxable investments, a tax-equivalent adjustment has been computed. This adjustment also includes income tax credits received on Qualified School Construction Bonds.
(3)   Adjusted NIM-FTE is a non-GAAP financial measure and is calculated by removing the $7,000 and $2,000 net purchase accounting amortization from the net interest income for the quarters ended June 30, 2024, and March 31, 2024, respectively, and the $530,000 net purchase accounting accretion from the net interest income for the quarter ended June 30, 2023.}

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^{(1)   The diluted EPS impact is calculated using a 21% effective tax rate. The total of the diluted EPS impact of each individual line item may not equal the calculated diluted EPS impact on the total notable items due to rounding.}

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^{(1)  The diluted EPS impact is calculated using a 21% effective tax rate. The total of the diluted EPS impact of each individual line item may not equal the calculated diluted EPS impact on the total notable items due to rounding.}

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