What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2024-02-29 compared with 2023-03-01 · 78 added, 89 removed, 681 unchanged (20% of the section changed)

12 unchanged sentences

All inter-company transactions are eliminated during the preparation of consolidated financial statements.

As of December 31, 2022, the Corporation had consolidated assets of $17.9 billion, consolidated deposits of $14.4 billion and stockholders’ equity of $2.0 billion.

As of December 31, 2023, the Corporation had consolidated asse ts of $18.4 billion, consolidated deposits of $14.8 billion and stockholders’ equity of $2.2 billion.

HUMAN CAPITAL

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Onboarding, training, talent assessment and development, career conversations, development planning and a culture of pride in high performance help us achieve employer of choice status.

Trust, respect, integrity and commitment are at the core of our success.

A significant event in 2022 was the adoption of a Human and Workforce Rights Policy.

We have identified three core ways in which we will succeed - Authentic, Driven and Collaborative.

Employee Engagement :

Our biennial Employee Engagement Survey is conducted by a third-party vendor for confidentiality and anonymity and for increased candid feedback.

Results show consistently strong employee engagement with over 70 percent of our employees considered to be “highly engaged.” Our response rates are high (88 percent) with the survey results providing valuable feedback that helps managers promote work satisfaction and high contribution.

Results show consistently strong employee engagement with 70 percent of our employees considered to be “highly engaged.” Our response rates are high (83 percent) with the survey results providing valuable feedback that helps managers promote work satisfaction and high contribution.

We offer specific and concerted effort in supporting our managers who score under 70 percent engagement.

Education Assistance :

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Our training completion rates are very high related to required development (99 percent completion for required courses) and our Learning Management System (LMS) archives all development in the Corporation.

Diversity, Equity and Inclusion :

Employee Resource Groups and Diversity, Equity and Inclusion :

We believe in attracting, retaining, and promoting a diverse workforce.

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In 2022, we launched two additional ERGs - Pride and Emerging Professionals.

Additionally, we have created a DEI Employee Community, which hosts bi-weekly calls that are attended by over 150 employees.

Our DEI Steering Committee provides guidance on all DEI efforts.

In 2023, we added a Veterans ERG and announced the creation of an InterFaith ERG.

Additionally, we have created an Employee Community Call, which hosts monthly Zoom/TEAMS calls that are attended by over 150 employees.

Our DEI Steering Committee provides guidance on all efforts.

Talent Assessment, Succession Planning and Career Path :

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Talent calibration supports succession and career planning for the Corporation.

Development plans are captured in a documented Career Growth Plan for all employees.

AVAILABLE INFORMATION

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ACQUISITIONS of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.

On April 1, 2021, the Bank acquired 100 percent of Hoosier Trust Company ("Hoosier") through a merger of Hoosier with and into the Bank.

The consideration paid to shareholders of Hoosier at closing was $3,225,000 in cash.

Details of the Hoosier acquisition can be found in NOTE 2.

ACQUISITIONS of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.

The Bank is located in Indiana, Ohio, Michigan and Illinois counties where other financial services companies provide similar banking services.

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The Basel III rules require the Corporation and the Bank to maintain minimum ratios of common equity tier 1 capital (“CET1”), tier 1 capital, and total capital to total risk-weighted assets, and of tier 1 capital to average total assets, all of which are calculated as defined in the regulations.

Basel III specifies that CET1 consists of common stock instruments (that meet the Basel III eligibility criteria), retained earnings, accumulated other comprehensive income and CET1 minority interest.

Basel III specifies that CET1 consists primarily of common stock instruments (that meet the Basel III eligibility criteria), retained earnings, and CET1 minority interest.

Basel III also defines CET1 narrowly by requiring that most adjustments to regulatory capital measures be made to CET1, and not to the other components of capital.

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This treatment is permanently grandfathered as tier 1 capital even if the Corporation should ever exceed $15 billion in assets due to organic growth but not following certain mergers or acquisitions.

As a result, while the Corporation’s total assets exceeded $15 billion as of December 31, 2021, the Corporation has continued to treat its trust preferred securities as tier 1 capital as of such date.

As a result, while the Corporation’s total assets exceeded $15 billion as of December 31, 2021, the Corporation had continued to treat its trust preferred securities as tier 1 capital as of such date.

However, under certain amendments to the “transition rules” of Basel III, if a bank holding company that held less than $15 billion of assets as of December 31, 2009 (which would include the Corporation) acquires a bank holding company with under $15 billion in assets at the time of acquisition (which would include Level One), and the resulting organization has total consolidated assets of $15 billion or more as reported on the resulting organization’s call report for the period in which the transaction occurred, the resulting organization must begin reflecting its trust preferred securities as tier 2 capital at such time.

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banks that are not large, internationally active banks.

In April 2020, federal banking regulators modified the Basel III regulatory capital rules applicable to banking organizations to allow those organizations participating in the Paycheck Protection Program (“PPP”) established under the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) to neutralize the regulatory capital effects of participating in the program by allowing PPP loans to receive a zero percent risk weight for purposes of determining risk-weighted assets and the CET1, tier 1 and Total Risk-Based capital ratios.

At December 31, 2022, risk-weighted assets included $4.7 million of PPP loans at a zero risk weight.

See “- COVID-19 and Related Legislative and Regulatory Actions” below for additional information on the PPP.

The following are the Corporation’s regulatory capital ratios as of December 31, 2023:

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The Corporation elected to delay implementation of CECL following the approval of the CARES Act and, with the enactment of the 2021 CAA, the Corporation elected to adopt CECL on January 1, 2021.

As a result, while the Corporation has utilized the CECL standard for both 2022 and 2021, its 2020 financial statements have been prepared under the incurred loss model.

As a result, the Corporation has utilized the CECL standard for 2023, 2022, and 2021.

As part of a March 27, 2020 joint statement of federal banking regulators, an interim final rule that allowed banking organizations to mitigate the effects of the CECL accounting standard on their regulatory capital was announced.

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The Federal Reserve also has rules governing routing and exclusivity that require issuers to offer two unaffiliated networks for routing transactions on each debit or prepaid product.

As the Corporation's assets exceeded $10 billion during the quarter ended March 31, 20, compliance with the Durbin Amendment began July 1, 2020 (six quarters after exceeding $10 billion in total assets).

For the last six months of 2020, compliance with the Durbin Amendment resulted in a material reduction of interchange fee income paid by merchants when debit cards were used as a source of payment.

The Volcker Rule, which was adopted under the Dodd-Frank Act, places certain limitations on the trading activity of insured depository institutions and their affiliates subject to certain exceptions.

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The FDIC has authority to raise or lower assessment rates on insured banks in order to achieve statutorily required reserve ratios in the Deposit Insurance Fund and to impose special additional assessments.

Additionally, the Bank’s Indiana public funds (state of Indiana and its political subdivisions) are insured by the the Public Deposit Insurance Fund (“PDIF”).

The PDIF provides insurance to those Indiana public funds deposited in approved financial institutions which exceed the limits of coverage provided by any federal deposit insurance.

Deposit insurance assessments are based on average consolidated total assets minus average tangible equity.

11 unchanged sentences

Under these regulations, the amount of dividends that may be paid in any calendar year is limited to the bank’s retained income (as defined under the regulations) for the current year plus those for the previous two years, subject to the capital requirements described above.

As of December 31, 2022, the amount available for dividends from the Corporation’s subsidiaries (both banking and non-banking), without prior regulatory approval or notice, was $288,725,000.

As of December 31, 2023, the amount available for dividends from the Corporation’s subsidiaries (both banking and non-banking), without prior regulatory approval or notice, was $305.9 million.

Brokered Deposits

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Failure to comply with these sanctions could have serious legal and reputational consequences, including causing applicable bank regulatory authorities not to approve merger or acquisition transactions when regulatory approval is required or to prohibit such transactions even if approval is not required.

COVID-19 and Related Legislative and Regulatory Actions

On January 30, 2020, the World Health Organization (“WHO”) announced that the outbreak of COVID-19 constituted a public health emergency of international concern.

On March 11, 2020, WHO declared COVID-19 to be a global pandemic and, on March 13, 2020, the President of the United States declared the COVID-19 outbreak a national emergency.

In the two years since then, the pandemic has dramatically impacted global health and the economic environment, including millions of confirmed cases and deaths, business slowdowns or shutdowns, labor shortfalls, supply chain challenges, regulatory challenges, and market volatility.

In response to the COVID-19 outbreak in January 2020, the U.S.

Congress, through the enactment of the CARES Act in March 2020, and the federal banking agencies, though rulemaking, interpretive guidance and modifications to agency policies and procedures, took a series of actions to provide emergency economic relief measures including, among others, the following:

Paycheck Protection Program .

The CARES Act established the PPP, which is administered by the Small Business Administration (“SBA”), to fund payroll and operational costs of eligible businesses, organizations and self-employed persons during the pandemic.

The Bank actively participated in assisting its customers with PPP funding during all phases of the program.

The application period for new PPP loans ended May 31, 2021.

The vast majority of the Bank’s PPP loans made in 2020 had two-year maturities, while the loans made in 2021 had five-year maturities.

Loans under the program earn interest at a fixed rate of 1 percent.

Consistent with the terms of the program, virtually all of the Corporation's PPP loans have been forgiven by the SBA.

As of December 31, 2022, the Corporation had $4.7 million of PPP loans outstanding compared to the December 31, 2021 balance of $106.6 million.

Loan Modifications and Troubled Debt Restructures .

The CARES Act, as amended by the 2021 CAA, allowed banks to suspend requirements under GAAP, effectively, through January 1, 2022, for certain loan modifications related to the COVID-19 pandemic.

The federal banking agencies also issued guidance to encourage banks to make loan modifications for borrowers affected by COVID-19 or offer other borrower friendly options.

In accordance with such guidance, the Bank made various short-term modifications for borrowers who were current and otherwise not past due.

These included short-term, 180 days or less, modifications in the form of payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that were insignificant.

The Corporation did not have any COVID-19 modifications outstanding as of December 31, 2022 or 2021.

Regulatory Capital .

The CARES Act, the 2021 CAA, and certain actions by federal banking regulators resulted in modifications to, or delays in implementation of, various regulatory capital rules applicable to banking organizations.

See “- Capital Adequacy Guidelines for Bank Holding Companies (Basel III)” above for additional information.

Additional Matters

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Interest-bearing deposits:

Interest-bearing deposit accounts $ 5,206,131 $ 32,511 0.62 % $ 4,769,482 $ 14,512 0.30 % $ 4,009,566 $ 20,239 0.50 %

Money market deposit accounts 2,915,397 19,170 0.66 2,351,803 3,203 0.14 1,769,478 7,810 0.44

Interest-bearing deposits $ 5,435,733 $ 138,012 2.54 % $ 5,206,131 $ 32,511 0.62 % $ 4,769,482 $ 14,512 0.30 %

Money market deposits 2,884,271 83,777 2.90 2,915,397 19,170 0.66 2,351,803 3,203 0.14

Savings deposits 1,694,230 14,606 0.86 1,927,122 5,019 0.26 1,754,972 1,886 0.11

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______________________________

(1) Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustment.

(1) Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments.

Annualized amounts are computed using a 30/360 day basis.

(2) Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2023, 2022 and 2021.

These totals equal $24,590, $20,585 and $16,966, respectively.

These totals equal $23.9 million, $24.6 million and $20.6 million for the years ended December 31, 2023, 2022, and 2021, respectively.

(3) Non accruing loans have been included in the average balances.

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(5) Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.

(6) Commercial loans included $4.7 million, $106.6 million and $667.1 million of Paycheck Protection Program ("PPP") loans at December 31, 2022, 2021 and 2020, respectively.

(6) Commercial loans included $2.7 million, $4.7 million and $106.6 million of PPP loans at December 31, 2023, 2022 and 2021, respectively.

ANALYSIS OF CHANGES IN NET INTEREST INCOME

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Available for sale at December 31, 2023

Treasury $ 2,501 $ — $ 42 $ 2,459

Government-sponsored agency securities $ 111,521 $ — $ 16,214 $ 95,307

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Available for sale at December 31, 2021

US Treasury $ 1,000 $ — $ 1 $ 999

Government-sponsored agency securities 96,244 437 1,545 95,136

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If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis.

Unrealized losses that have not been recorded through an allowance for credit losses is recognized in other comprehensive income.

Unrealized losses that have not been recorded through an allowance for credit losses are recognized in other comprehensive income (loss).

Adjustments to the allowance are reported in the income statement as a component of the provision for credit loss.

31 unchanged sentences

Securities available for sale December 31, 2023

Treasury $ 1,171 3.6 % $ 1,288 2.4 % $ — — %

Government-sponsored agency securities $ — — % $ 8,945 1.4 % $ — — %

7 unchanged sentences

Amount Yield (1)

Treasury $ — — % $ — — % $ 2,459 3.0 %

Government-sponsored agency securities $ 86,362 2.3 % $ — — % $ 95,307 2.2 %

31 unchanged sentences

Commercial and industrial loans (1)

$ 3,670,948 29.4 % $ 3,437,126 28.6 % $ 2,714,565 29.4 % $ 2,776,699 30.0 % $ 2,109,879 24.9 %

Agricultural land, production and other loans to farmers 263,414 2.1 241,793 2.0 246,442 2.7 281,884 3.0 334,172 4.0

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Net Loans $ 12,281,093 $ 11,780,617 $ 9,046,464 $ 9,112,526 $ 8,379,026

As of December 31, 2022, the Corporation had $4.7 million of Paycheck Protection Program ("PPP") loans compared to the December 31, 2021 and 2020 balances of $106.6 million and $667.1 million, respectively.

PPP loans are included in the commercial and industrial loan class.

Public finance and other commercial loans is primarily comprised of loans secured by states and political subdivisions in the United States.

(1) Includes PPP loans of $2.7 million in 2023, $4.7 million in 2022, $106.6 million in 2021, and $667.1 million in 2020.

At December 31, 2023, 2022, 2021, 2020, and 2019, the remaining fair value discount on acquired loans was $23.2 million, $31.3 million, $10.9 million, $23.0 million, and $36.6 million, respectively.

LOAN MATURITIES

Presented in the table below are the maturities of loans outstanding as of December 31, 2022, by collateral classification.

Also presented are the amounts due after one year, classified according to the sensitivity to changes in interest rates.

The tables classify variable rate loans pursuant to the contractual repricing dates of the underlying loans, while fixed rate loans are classified by contractual maturity date.

The following tables present the maturity distribution of our loan portfolio, excluding loans held for sale, by collateral classification at December 31, 2023 according to contractual maturities of (1) one year or less, (2) after one year but within five years and (3) after five years.

The second table presents the same classifications including only fixed interest rate loans and the third table presents the same classifications including only the variable interest rate loans where the rates fluctuate over the life of the loans in accordance with changes in an interest rate index.

(Dollars in Thousands) Maturing

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(Dollars in Thousands) Maturing

Within 1 Year Maturing

1-5 Years Maturing Over

Loans maturing after one year with:

Fixed rate $ 1,406,121 $ 2,956,205

Variable rate 692,723 575,294

5 Years Total

Commercial and industrial loans $ 36,799 $ 433,358 $ 172,620 $ 642,777

Agricultural land, production and other loans to farmers 11,680 26,507 13,086 51,273

Real estate loans:

Construction 11,604 32,276 158,544 202,424

Commercial real estate, non-owner occupied 133,073 458,759 167,500 759,332

Commercial real estate, owner occupied 56,180 372,668 130,631 559,479

Residential 12,239 113,043 930,748 1,056,030

Home Equity 5,644 9,508 10,395 25,547

Individuals' loans for household and other personal expenditures 6,547 74,618 22,512 103,677

Public finance and other commercial loans 5,245 24,663 874,050 903,958

Total $ 279,011 $ 1,545,400 $ 2,480,086 $ 4,304,497

NON-PERFORMING ASSETS

The table below summarizes non-performing assets for the years indicated:

(Dollars in Thousands) Maturing

Within 1 Year Maturing

1-5 Years Maturing Over

5 Years Total

Commercial and industrial loans $ 700,571 $ 2,177,448 $ 150,152 $ 3,028,171

Agricultural land, production and other loans to farmers 84,252 9,954 117,935 212,141

Real estate loans:

Construction 325,505 389,368 40,248 755,121

Commercial real estate, non-owner occupied 240,719 539,480 861,308 1,641,507

Commercial real estate, owner occupied 39,873 215,527 347,204 602,604

Residential 7,204 22,876 1,202,811 1,232,891

Home Equity 15,662 27,892 548,470 592,024

Individuals' loans for household and other personal expenditures 17,406 16,700 30,605 64,711

Public finance and other commercial loans 52 22,470 29,838 52,360

Total $ 1,431,244 $ 3,421,715 $ 3,328,571 $ 8,181,530

NONPERFORMING ASSETS

The table below summarizes nonperforming assets for the years indicated:

December 31, December 31, December 31, December 31, December 31,

(Dollars in Thousands) 2023 2022 2021 2020 2019

Non-performing assets:

Non-accrual loans $ 42,324 $ 43,062 $ 61,471 $ 15,949 $ 26,148

Nonperforming assets:

Nonaccrual loans $ 53,580 $ 42,324 $ 43,062 $ 61,471 $ 15,949

Renegotiated loans (1)

Non-performing loans (NPL) 42,548 43,391 64,711 16,790 27,251

— 224 329 3,240 841

Nonperforming loans (NPL) 53,580 42,548 43,391 64,711 16,790

OREO and Repossessions 4,831 6,431 558 940 7,527

Non-performing assets (NPA) 48,979 43,949 65,651 24,317 29,430

Nonperforming assets (NPA) 58,411 48,979 43,949 65,651 24,317

Loans 90-days or more delinquent and still accruing 172 1,737 963 746 69

NPAs and loans 90-days or more delinquent $ 58,583 $ 50,716 $ 44,912 $ 66,397 $ 24,386

(1) As a result of the adoption of ASU 2022-02 on January 1, 2023, the renegotiated classification is no longer applicable.

Loans are reclassified to a non-accruing status when, in management’s judgment, the collateral value and financial condition of the borrower do not justify accruing interest.

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A loan is returned to accrual status when principal and interest are no longer past due and collectability is probable, typically after a minimum of six consecutive months of performance.

At December 31, 2022, non-accrual loans totaled $42.3 million, a decrease of $738,000 from December 31, 2021.

At December 31, 2022, 2021, 2020, 2019, and 2018, non-accrual loans include assets acquired of $8.2 million, $3.2 million, $7.9 million, $3.7 million, and $0, respectively.

Other real estate owned ("OREO") at December 31, 2022 increased $5.9 million from the December 31, 2021 balance of $558,000.

The increase is primarily related to one loan with a balance of $5.8 million.

At December 31, 2023, non-accrual loans totaled $53.6 million, an increase of $11.3 million from December 31, 2022.

The primary increase was in the residential portfolio of $11.5 million.

At December 31, 2023, 2022, 2021, 2020, and 2019, non-accrual loans include assets acquired of $5.2 million, $8.2 million, $3.2 million, $7.9 million, and $3.7 million, respectively.

Other real estate owned (“OREO”) at December 31, 2023 decreased $1.6 million from the December 31, 2022 balance of $6.4 million.

At December 31, 2023, 2022 and 2021, OREO did not include any acquired assets.

OREO did include assets that were acquired from MBT of $136,000 as of December 31, 2019.

OREO did not include any assets acquired as of the year ended 2018.

Renegotiated loans are loans for which concessions are granted to the borrower due to deterioration in the financial condition of the borrower, resulting in the inability of the borrower to meet the original contractual terms of the loans.

These concessions may include interest rate reductions, principal forgiveness, extensions of maturity date or other actions intended to minimize losses.

Certain loans restructured may be excluded from restructured loan disclosures in years subsequent to the restructuring if the loans are in compliance with their modified terms.

A non-accrual loan that is restructured may remain in non-accrual for a period of approximately six months until the borrower can demonstrate their ability to meet the restructured terms.

A borrower's performance prior to the restructuring, as well as after, will be considered in assessing whether the borrower can meet the new terms resulting in the loan being returned to accruing status in a shorter or longer period of time than the standard six months.

If the borrower’s performance under the modified terms is not reasonably assured, the loan will remain in non-accrual.

For the year ended December 31, 2022, interest income of $3.0 million was recognized on the non-accruing and renegotiated loans listed in the table above, whereas interest income of $3.2 million would have been recognized under their loan terms.

In addition to the loans discussed above, management also identified commercial loans totaling $411.6 million as of December 31, 2022 that were deemed to be risk graded criticized.

Comparatively, commercial loans risk graded criticized at December 31, 2021 totaled $369.5 million.

For the year ended December 31, 2023, interest income of $3.2 million was recognized on the non-accruing and renegotiated loans listed in the table above, aligning with the amount of interest income that would have been recognized under their loan terms.

In addition to the nonperforming loans discussed above, management also identified loans totaling $515.2 million and $417.3 million as of December 31, 2023 and 2022, respectively, that were deemed to be risk graded criticized.

A loan risk graded criticized is a loan in which there are concerns regarding the borrower’s ability to comply with the repayment terms and would include loans graded special mention or worse.

Consumer loans are not risk graded.

However, for purposes of disclosure, the consumer loans are classified as follows:

loans that are less than 30 days past due are Pass, loans 30-89 days past due are Special Mention and loans greater than 89 days past due are Substandard.

See additional information regarding loan credit quality in the “LOAN QUALITY” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included as Item 7 of this Annual Report on Form 10-K and in NOTE 5.

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Net Charge-offs (25,643) (2,674) (9,306) (8,309) (3,068)

Provisions for credit losses — — 58,673 2,800 7,227

Provisions for credit losses - loans 7,300 — — 58,673 2,800

CECL Day 1 non-PCD provision for credit losses — 13,955 — — —

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Additionally, prior to CECL adoption, construction loans were classified within the commercial real estate segment, but after CECL adoption, construction loans were classified as a separate segment.

The acquisition of Level One added $16.6 million in allowance for credit losses on PCD loans and an additional $14.0 million in provision for credit losses on non-PCD loans.

Details of the Allowance for Credit Losses and non-performing loans are discussed within the “LOAN QUALITY" section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included as Item 7 of this Annual Report on Form 10-K.

Details of the Allowance for Credit Losses and nonperforming loans are discussed within the “LOAN QUALITY” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included as Item 7 of this Annual Report on Form 10-K.

ALLOCATION OF THE ALLOWANCE FOR CREDIT LOSSES

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Totals $ 204,934 100.0 % $ 223,277 100.0 % $ 195,397 100.0 % $ 130,648 100.0 % $ 80,284 100.0 %

The allowance for credit losses increased $27.9 million during the twelve months ended December 31, 2022.

The allowance increased primarily due to $16.6 million of allowance for credit losses on PCD loans acquired in the Level One acquisition established through accounting adjustments on the acquisition date.

In addition, a provision of $14.0 million was recorded to establish an allowance for credit losses on non-PCD loans acquired in the Level One acquisition.

These increases in the allowance were offset by net charge offs of $2.7 million for the twelve months ended December 31, 2022.

The allowance for credit losses decreased $18.3 million during the twelve months ended December 31, 2023.

The allowance decreased primarily due to $25.6 million of net charge-offs during the twelve months ended December 31, 2023.

The increase in net charge-offs was primarily related to two large commercial and industrial charge-offs of $13.7 million and $5.4 million in the third quarter of 2023.

The larger charge-off involved fraudulent activity by the borrower and was idiosyncratic in nature and not indicative of a larger portfolio credit issue.

There was $7.3 million in provision for credit losses during the twelve months ended December 31, 2023.

Loan concentrations are considered to exist when there are amounts loaned to multiple borrowers engaged in similar activities, which would cause them to be similarly impacted by economic or other conditions.

At December 31, 2023, two concentrations of commercial loans within a single industry (as segregated by North American Industry Classification System “NAICS code”) were in excess of 10 percent of total loans.

Lessors of Residential Buildings and Dwellings and Lessors of Nonresidential Buildings.

Lessors of Residential Buildings and Dwellings and Lessors of Nonresidential Buildings represented 12.23 percent and 10.39 percent of total loans, respectively.

CREDIT LOSS CHARGE-OFF PROCEDURES

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business