FIRST FINANCIAL CORP /IN/
For the period ended Sep 30, 2026. Filed Nov 4, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 4, 2026
THFF$76.24-0.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0000714562-26-000053
Items 2 and 3. Management’s Discussion and Analysis of Financial Condition and Results of Operations and Quantitative and Qualitative Disclosures About Market RiskCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-04.
0000714562-26-000071
Items 2 and 3. Management’s Discussion and Analysis of Financial Condition and Results of Operations and Quantitative and Qualitative Disclosures About Market RiskThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 51 previous paragraphs and 54 current paragraphs.
29 unchanged; 21 reworded; 3 added; 0 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (3)
Current report
**Securities valuation and potential impairment.**Securities available-for-sale are carried at fair value, with unrealized holding gains and losses reported separately in accumulated other comprehensive income (loss), net of tax. The Corporation obtains market values from a third party on a monthly basis in order to adjust the securities to fair value. Equity securities that do not have readily determinable fair values are carried at cost. Additionally, all securities are required to be evaluated for impairment related to credit losses. In evaluating for impairment, management considers the reason for the decline, the extent of the decline, and whether the Corporation intends to sell a security or is more likely than not to be required to sell a security before recovery of its amortized cost. If an entity intends to sell or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, the security’s amortized cost is written down to fair value through income. If an entity does not intend to sell the security and it is not more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis, then the Corporation evaluates whether the decline in fair value has resulted from credit losses or other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded, limited to the amount that the fair value of the security is less than its amortized basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of applicable taxes. No allowance for credit losses for available-for-sale securities was needed at December 31, 2025.
Current report
Goodwill. The carrying value of goodwill requires management to use estimates and assumptions about the fair value of the reporting unit compared to its book value. An impairment analysis is prepared on an annual basis. Fair values of the reporting units are determined by an analysis which considers cash flows streams, profitability and estimated market values of the reporting unit. The majority of the Corporation’s goodwill is recorded at First Financial Bank, N. A.
Current report
Management believes the accounting estimates related to the allowance for credit losses, valuation of investment securities and the valuation of goodwill are “critical accounting estimates” because: (1) the estimates are highly susceptible to change from period to period because they require management to make assumptions concerning, among other factors, the changes in the types and volumes of the portfolios, valuation assumptions, and economic conditions, and (2) the impact of recognizing an impairment or credit loss could have a material effect on the Corporation’s assets reported on the balance sheet as well as net income.
Reworded paragraphs (21)
Previous wording
The purpose of this discussion is to point out key factors in the Corporation’s recent performance compared with earlier periods. The discussion should be read in conjunction with the financial statements beginning on page three of this report. All figures are for the consolidated entities. It is presumed the readers of these financial statements and of the following narrative have previously read the Corporation’s financial statements for 2025 in the 10-K filed for the fiscal year ended December 31, 2025.
Current wording
The purpose of this discussion is to point out key factors in recent performance of First Financial Corporation (the Corporation) compared with earlier periods. The discussion should be read in conjunction with the financial statements beginning on page three of this report. All figures are for the consolidated entities. It is presumed the readers of these financial statements and of the following narrative have previously read the Corporation’s consolidated financial statements on Form 10-K filed for the fiscal year ended December 31, 2025.
Previous wording
This Quarterly Report on Form 10-Q contains forward-looking statements. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include, without limitation, the Corporation’s ability to effectively execute its business plans; changes in general economic and financial market conditions; changes in interest rates; changes in the competitive environment; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; losses, customer bankruptcy, claims and assessments; changes in banking regulations or other regulatory or legislative requirements affecting the Corporation’s business; and changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies. Additional information concerning factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements is available in the Corporation’s Form 10-K for the year ended December 31, 2025, and subsequent filings with the United States Securities and Exchange Commission (SEC). Copies of these filings are available at no cost on the SEC’s Web site at www.sec.gov or on the Corporation’s Web site at www.first-online.com. Management may elect to update forward-looking statements at some future point; however, it specifically disclaims any obligation to do so.
Current wording
This Quarterly Report on Form 10-Q contains forward-looking statements. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include, without limitation, the Corporation’s ability to effectively execute its business plans; changes in general economic and financial market conditions; changes in interest rates; changes in the competitive environment; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; losses, customer bankruptcy, claims and assessments; changes in banking regulations or other regulatory or legislative requirements affecting the Corporation’s business; and changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board (“FASB”) or other regulatory agencies. Additional information concerning factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements is available in the Corporation’s Form 10-K for the year ended December 31, 2025, and subsequent filings with the United States Securities and Exchange Commission (SEC). Copies of these filings are available at no cost on the SEC’s Web site at www.sec.gov or on the Corporation’s Web site at www.first-online.com. Management may elect to update forward-looking statements at some future point; however, it specifically disclaims any obligation to do so.
Previous wording
Certain of the Corporation’s accounting policies are important to the portrayal of the Corporation’s financial condition and results of operations, since they require management to make difficult, complex or subjective judgments, some of which may relate to matters that are inherently uncertain. Estimates associated with these policies are susceptible to material changes as a result of changes in facts and circumstances. Facts and circumstances which could affect these judgments include, without limitation, changes in interest rates, in the performance of the economy or in the financial condition of borrowers. Management believes that its critical accounting policies include determining the allowance for credit losses and the valuation of goodwill and valuing investment securities. See further discussion of these critical accounting policies in the 2025 Form 10-K.
Current wording
Certain of the Corporation’s accounting policies are important to the portrayal of the Corporation’s financial condition and results of operations, since they require management to make difficult, complex or subjective judgments, some of which may relate to matters that are inherently uncertain. Estimates associated with these policies are susceptible to material changes as a result of changes in facts and circumstances. Facts and circumstances which could affect these judgments include, without limitation, changes in interest rates, in the performance of the economy or in the financial condition of borrowers. Management believes that its critical accounting policies include determining the allowance for credit losses and the valuation of goodwill and valuing investment securities. See further discussion of these critical accounting policies in the Corporation’s consolidated financial statements on Form 10-K filed for the fiscal year ended December 31, 2025.
Previous wording
A historical data set is expected to provide the best indication of future credit performance. Delay periods represent the amount of time it takes a cohort of loans to become seasoned, or incur sufficient attrition through pay downs, renewals, or charge-offs. Portfolio segmentation relates to the pooling of loans with similar risk characteristics, such as industry types, collateral, and consumer purpose.
Current wording
A historical data set is expected to provide the best indication of future credit performance. Delay periods represent the amount of time it takes a cohort of loans to become seasoned, or incur sufficient attrition through pay downs, renewals, or charge-offs. Portfolio segmentation relates to the pooling of loans with similar risk characteristics, such as industry types, collateral, and consumer purpose. On an annual basis, in the first quarter, management performs a recalibration of the delay periods and portfolio segmentation to determine whether they are reasonable and appropriate based on the information available at that time.
Previous wording
The ACL and allowance for unfunded commitments were $50.9 million and $2.9 million, respectively at June 30, 2026, compared to $48.0 million and $2.9 million, respectively at December 31, 2025. The qualitative amount of the reserve increased $1.8 million to $15.9 million. The quantitative amount is $34.4 million at June 30, 2026, compared to $33.6 million at December 31, 2025. There was no change in the allowance for unfunded commitments. As a result of the acquisition of CedarStone Financial, Inc., the Corporation recorded an additional allowance for credit loss on loans of $3.3 million. See additional discussion of ACL in the Allowance for Credit Losses section below.
Current wording
The ACL and allowance for credit losses on unfunded commitments were $49.7 million and $2.4 million, respectively at September 30, 2026, compared to $48.0 million and $2.9 million, respectively at December 31, 2025. The qualitative amount of the reserve increased $2.0 million to $16.1 million from December 31, 2025 to September 30, 2026. The quantitative amount is $33.3 million at September 30, 2026, compared to $33.6 million at December 31, 2025. There was a decrease of $500 thousand in the allowance for credit losses on unfunded commitments from December 31, 2025 to September 30, 2026. As a result of the acquisition of CedarStone Financial, Inc., the Corporation recorded an additional allowance for credit loss on loans of $3.3 million. See additional discussion of ACL in the Allowance for Credit Losses section below.
Previous wording
On March 1, 2026, First Financial Corporation completed the acquisition of CedarStone Financial, Inc. As a result of the acquisition, the book value of loans acquired were $292 million, and the book value of deposits acquired were $313 million. Additionally, we recorded a bargain purchase gain of $33 thousand. Net income reflected one month of activity in the first quarter for activity from CedarStone. Included in the variances in the following discussion are the values provided in this paragraph.
Current wording
On March 1, 2026, First Financial Corporation completed the acquisition of CedarStone Financial, Inc. As a result of the acquisition, the book value of loans acquired were $292 million, and the book value of deposits acquired were $313 million. Additionally, a bargain purchase gain of $33 thousand was recognized. Net income reflects seven months of activity for the nine months ended September 30, 2026, from the CedarStone acquisition. Included in the variances in the following discussion are the values provided in this paragraph.
Previous wording
Net income for the three months ended June 30, 2026 was $22.7 million, compared to $18.6 million for the same period in 2025. Basic earnings per share increased to $1.91 for the second quarter of 2026 compared to $1.57 for the same period in 2025. Return on average assets and return on average equity were 1.48% and 13.71% respectively, for the three months ended June 30, 2026 compared to 1.34% and 12.90% for the three months ended June 30, 2025. Net income for the six months ended June 30, 2026 was $42.5 million, compared to $37.0 million for the same period in 2025. Basic earnings per share increased to $3.58 for the six months of 2026 compared to $3.12 for the same period in 2025. Return on average assets and return on average equity were 1.42% and 12.82% respectively, for the six months ended June 30, 2026 compared to 1.34% and 12.97% for the six months ended June 30, 2025.
Current wording
Net income for the three months ended September 30, 2026 was $27.4 million, compared to $20.8 million for the same period in 2025. Basic and diluted earnings per share increased to $2.31 for the third quarter of 2026 compared to $1.75 for the same period in 2025. Return on average assets and return on average equity were 1.79% and 16.13% respectively, for the three months ended September 30, 2026 compared to 1.48% and 13.82% for the three months ended September 30, 2025. Net income for the nine months ended September 30, 2026 was $70.0 million, compared to $57.8 million for the same period in 2025. Basic and diluted earnings per share increased to $5.89 for the nine months of 2026 compared to $4.87 for the same period in 2025. Return on average assets and return on average equity were 1.54% and 13.91% respectively, for the nine months ended September 30, 2026 compared to 1.39% and 13.23% for the nine months ended September 30, 2025.
Previous wording
The Corporation’s primary source of earnings is net interest income, which is the difference between the interest earned on loans and other investments and the interest paid for deposits and other sources of funds. Net interest income increased $8.5 million in the three months ended June 30, 2026 to $61.2 million from $52.7 million in the same period in 2025. The net interest margin for the three months ended June 30, 2026 is 4.33% compared to 4.15% for the same period in 2025, a 4.32% increase. Net interest income increased $13.5 million in the six months ended June 30, 2026 to $118.2 million from $104.6 million in the same period in 2025. The net interest margin for the six months ended June 30, 2026 is 4.28% compared to 4.13% for the same period in 2025, a 3.61% increase.
Current wording
The Corporation’s primary source of earnings is net interest income, which is the difference between the interest earned on loans and other interest-earning assets and the interest paid for deposits and other sources of funds. Net interest income increased $8.9 million (or 16.3%) in the three months ended September 30, 2026 to $63.5 million from $54.6 million in the same period in 2025. The net interest margin for the three months ended September 30, 2026 is 4.51% compared to 4.25% for the same period in 2025, a 0.26% increase. Net interest income increased $22.4 million (or 14.1%) in the nine months ended September 30, 2026 to $181.7 million from $159.2 million in the same period in 2025. The net interest margin for the nine months ended September 30, 2026 is 4.36% compared to 4.17% for the same period in 2025, a 0.19% increase.
Previous wording
The increase in yields on investments of 29 basis points is the primary contributor to the improved yield on average earning assets for the six months ended June 30, 2026, compared to the six months ended June 30, 2025. Comparing the six months ended June 30, 2026 to the six months ended June 30, 2025, the effective rate paid on average interest-bearing deposits decreased 13 basis points. For the same period discussed above, interest paid on other borrowings decreased 71 basis points.
Current wording
The increase in yields on investments of 30 basis points is the primary contributor to the improved yield on average earning assets for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025. Comparing the nine months
Previous wording
Non-interest income for the three months ended June 30, 2026 was $10.6 million compared to $10.4 million for the same period in 2025. Non-interest income for the six months ended June 30, 2026 was $21.9 million compared to $20.9 million for the same period in 2025.
Current wording
Non-interest income for the three months ended September 30, 2026 was $11.4 million compared to $11.1 million for the same period in 2025. Non-interest income for the nine months ended September 30, 2026 was $33.3 million compared to $32.0 million for the same period in 2025.
Previous wording
The Corporation’s non-interest expense for the quarter ended June 30, 2026 was $42.5 million compared to $38.3 million for the same period in 2025. The Corporation’s non-interest expense for the six months ended June 30, 2026 was $83.4 million compared to $75.0 million for the same period in 2025. This includes an overall increase in operating expenses as a result of the acquisition.
Current wording
The Corporation’s non-interest expense for the three months ended September 30, 2026 was $41.2 million compared to $38.0 million for the same period in 2025. The Corporation’s non-interest expense for the nine months ended September 30, 2026 was $124.7 million compared to $113.1 million for the same period in 2025. This includes an overall increase in operating expenses as a result of the CedarStone acquisition.
Previous wording
The Corporation’s provision for credit losses for the three months ended June 30, 2026, was $1.3 million, compared to $2.0 million for the same period of 2025. Net charge-offs for the second quarter of 2026 were $2.7 million compared to net charge-offs of $1.7 million for the same period of 2025. The Corporation’s provision for credit losses for the six months ended June 30, 2026, was $3.9 million, compared to $3.9 million for the same period of 2025. Net charge-offs for the six months ended June 30, 2026 were $4.2 million compared to net charge-offs of $3.5 million for the same period of 2025. Based on management’s analysis of the current portfolio, an evaluation that includes consideration of changes in CECL model assumptions of credit quality, economic conditions, and loan composition, management believes the allowance is adequate. In the first six months of 2026, no significant changes were made.
Current wording
The Corporation’s benefit from credit losses on loans for the three months ended September 30, 2026, was $250 thousand, compared to $2.0 million of expense for the same period of 2025. The benefit from credit losses was primarily due to an individually evaluated loan from a prior acquisition that was fully recovered during the current quarter. Net charge-offs for the three months ended September 30, 2026, were $971 thousand compared to net charge-offs of $1.6 million for the same period of 2025. The Corporation’s provision for credit losses on loans for the nine months ended September 30, 2026, was $3.6 million, compared to $5.9 million for the same period of 2025. Net charge-offs for the nine months ended September 30, 2026 were $5.2 million compared to net charge-offs of $5.2 million for the same period of 2025. Based on management’s analysis of the current portfolio, an evaluation that includes consideration of changes in CECL model assumptions of credit quality, economic conditions, and loan composition, management believes the allowance is adequate as of September 30, 2026. In the first nine months of 2026, no significant changes were made.
Previous wording
The Corporation’s effective income tax rate for the first six months of 2026 was 19.36% compared to 20.62% for the same period in 2025.
Current wording
The Corporation’s effective income tax rate for the first nine months of 2026 was 19.73% compared to 20.18% for the same period in 2025.
Previous wording
Non-performing loans consist of (1) non-accrual loans on which the ultimate collectability of the full amount of interest is uncertain, and (2) loans past due ninety days or more as to principal or interest. Non-performing loans decreased to $27.1 million at June 30, 2026 compared to $28.6 million at December 31, 2025. Nonperforming loans increased 176.3% compared to $9.8 million as of June 30, 2025.
Current wording
Non-performing loans consist of (1) non-accrual loans on which the ultimate collectability of the full amount of interest is uncertain, and (2) loans past due ninety days or more as to principal or interest. Non-performing loans decreased 26.2% to $21.1 million at September 30, 2026 compared to $28.6 million at December 31, 2025.
Previous wording
First Financial Corporation has established risk measures, limits and policy guidelines for managing interest rate risk and liquidity. Responsibility for management of these functions resides with the Asset Liability Committee. The primary goal of the Asset Liability Committee is to maximize net interest income within the interest rate risk limits approved by the Board of Directors.
Current wording
The Corporation has established risk measures, limits and policy guidelines for managing interest rate risk and liquidity. Responsibility for management of these functions resides with the Asset Liability Committee. The primary goal of the Asset Liability Committee is to maximize net interest income within the interest rate risk limits approved by the Board of Directors.
Previous wording
Management considers interest rate risk to be the Corporation’s most significant market risk. Interest rate risk is the exposure to changes in net interest income as a result of changes in interest rates. Consistency in the Corporation’s net interest income is largely dependent on the effective management of this risk.
Current wording
Management considers interest rate risk to be the Corporation’s most significant market risk. Interest rate risk is the exposure to changes in net interest income as a result of changes in interest rates. The Corporation’s net interest income performance is largely dependent on the effective management of this risk.
Previous wording
The table below shows the Corporation’s estimated sensitivity profile as of June 30, 2026. The change in interest rates assumes a parallel shift in interest rates of 100, 200, and 300 basis points. Given a 100 basis point increase in rates, net interest income would decrease 1.38% over the next 12 months and increase 1.35% over the following 12 months. Given a 100 basis point decrease in rates, net interest income would increase 3.29% over the next 12 months and increase 0.04% over the following 12 months. These estimates assume all rate changes occur overnight and management takes no action as a result of this change.
Current wording
The table below shows the Corporation’s estimated sensitivity profile as of September 30, 2026. The change in interest rates assumes a parallel shift in interest rates of 100, 200, and 300 basis points. Given a 100 basis point increase in rates, net interest income would decrease 1.48% over the next 12 months but increase 1.33% over 24 months. Given a 100 basis point decrease in rates, net interest income would increase 3.20% over the next 12 months and increase 0.23% over 24 months. These estimates assume all rate changes occur overnight and management takes no action as a result of this change.
Previous wording
Liquidity represents an institution’s ability to provide funds to satisfy demands from depositors, borrowers, and other creditors by either converting assets into cash or accessing new or existing sources of incremental funds. Generally the Corporation relies on deposits, loan repayments and repayments of investment securities as its primary sources of funds. The Corporation has $6.8 million of investments that mature throughout the next 12 months. The Corporation also anticipates $106.1 million of principal payments from mortgage-backed and other securities. Given the current rate environment, the Corporation anticipates $55.7 million in securities to be called within the next 12 months. The Corporation also has $199.5 million of unused borrowing capacity available with the Federal Home Loan Bank of Indianapolis, $1.0 billion available with the Federal Reserve Bank, and $90 million of available fed funds lines with correspondent banks. With these sources of funds, the Corporation currently anticipates adequate liquidity to meet the expected obligations of its customers.
Current wording
Liquidity represents an institution’s ability to provide funds to satisfy demands from depositors, borrowers, and other creditors by either converting assets into cash or accessing new or existing sources of incremental funds. Generally the Corporation relies on deposits, loan repayments and repayments of investment securities as its primary sources of funds. The Corporation has $5.8 million of investments that mature throughout the next 12 months. The Corporation also anticipates $101.6 million of principal payments from mortgage-backed and other securities. Given the current rate environment, the Corporation anticipates $18.1 million in securities to be called within the next 12 months. The Corporation also has $74.6 million of unused borrowing capacity available with the Federal Home Loan Bank of Indianapolis, $1.1 billion available with the Federal Reserve Bank, and $90 million of available fed funds lines with correspondent banks. With these sources of funds, the Corporation currently anticipates adequate liquidity to meet the expected obligations of its customers.
Previous wording
Comparing the first six months of 2026 to year-ended December 31, 2025, loans net of deferred loan costs, have increased $413 million to $4.5 billion. Deposits increased 6.2% to $4.8 billion at June 30, 2026 compared to December 31, 2025. Other borrowings increased $103.3 million to $291.5 million at June 30, 2026 compared to December 31, 2025. Shareholders’ equity increased 3.83% or $24.9 million. This financial performance increased book value per share 3.73% to $56.83 at June 30, 2026 from $54.78 at December 31, 2025. Book value per share is calculated by dividing the total shareholders’ equity by the number of shares outstanding. Accumulated other comprehensive loss increased $4.4 million primarily due to the market value of the securities portfolio, which reflected the decrease in securities pricing.
Current wording
Comparing the first nine months of 2026 to year-ended December 31, 2025, loans net of deferred loan costs, have increased $356 million to $4.4 billion. Deposits increased 6.9% to $4.9 billion at September 30, 2026 compared to December 31, 2025. Other borrowings increased $74.1 million to $262.3 million at September 30, 2026 compared to December 31, 2025. Shareholders’ equity increased 1.47% or $9.6 million. This financial performance increased book value per share 1.38% to $55.54 at September 30, 2026 from $54.78 at December 31, 2025. Book value per share is calculated by dividing the total shareholders’ equity by the number of shares outstanding. Accumulated other comprehensive loss increased $40.7 million primarily due to the market value of the securities portfolio, which reflected the decrease in securities pricing.
Previous wording
To meet adequately capitalized regulatory requirements, an institution must maintain a Tier 1 capital ratio of 8.50 percent and a Total capital ratio of 10.50 percent. A “well-capitalized” institution must generally maintain capital ratios 200 bps higher than the minimum guidelines. The risk-based capital rules have been further supplemented by a Tier 1 leverage ratio, defined as Tier 1 capital divided by quarterly average total assets, after certain adjustments. BHCs must have a minimum Tier 1 leverage ratio of at least 4.0 percent. National banks must maintain a Tier 1 leverage ratio of at least 5.0 percent to be classified as “well capitalized.” Failure to meet the capital requirements established by the joint agencies can lead to certain mandatory and discretionary actions by regulators that could have a material adverse effect on the Corporation’s financial position. Below are the capital ratios for the Corporation and lead bank.
Current wording
To meet adequately capitalized regulatory requirements, an institution must maintain a Tier 1 capital ratio of at least 8.50 percent and a Total capital ratio of at least 10.50 percent. A “well-capitalized” institution must generally maintain capital ratios 200 bps higher than the minimum guidelines. The risk-based capital rules have been further supplemented by a Tier 1 leverage ratio, defined as Tier 1 capital divided by quarterly average total assets, after certain adjustments. Bank holding companies must have a minimum Tier 1 leverage ratio of at least 4.0 percent. National banks must maintain a Tier 1 leverage ratio of at least 5.0 percent to be classified as “well capitalized.” Failure to meet the capital requirements established by the joint agencies can lead to certain mandatory and discretionary actions by regulators that could have a material adverse effect on the Corporation’s financial position. Below are the capital ratios for the Corporation and lead bank.
Previous wording
The fully phased in capital conservation buffer set the minimum ratios for common equity Tier 1 capital at 7%, the Tier 1 capital at 8.5% and the total capital at 10.5%. Currently the Corporation exceeds all of these minimums.
Current wording
The fully phased in capital conservation buffer set the minimum ratios for common equity Tier 1 capital at 7.0%, the Tier 1 capital at 8.5% and the total capital at 10.5%. Currently the Corporation exceeds all of these minimums.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
ended September 30, 2026 to the nine months ended September 30, 2025, the effective rate paid on average interest-bearing deposits decreased 10 basis points. For the same period discussed above, interest paid on other borrowings decreased 67 basis points.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
On an annual basis, in the first quarter, management performs a recalibration of the delay periods and portfolio segmentation to determine whether they are reasonable and appropriate based on the information available at that time.