Open the filing on EDGAR| For Immediate Release: | January 14, 2026 |
HOMB Delivers Another Strong Quarter: $400 Million Loan Growth, Sub-40% Efficiency Ratio & Robust Margin Drive 18% Year-Over-Year Income Increase and Annual ROA of 2.10%
Conway, AR - Home BancShares, Inc. (NYSE: HOMB) (“Home” or the “Company”), parent company of Centennial Bank, released quarterly earnings today.
Quarterly Highlights
| Metric | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 |
| Net income | $118.2 million | $123.6 million | $118.4 million | $115.2 million | $100.6 million |
| Net income, as adjusted (non-GAAP) | $117.9 million | $119.7 million | $114.6 million | $111.9 million | $99.8 million |
| Total revenue (net) | $282.1 million | $277.7 million | $271.0 million | $260.1 million | $258.4 million |
| Income before income taxes | $153.3 million | $159.3 million | $152.0 million | $147.2 million | $129.5 million |
| Pre-tax, pre-provision, net income (PPNR) (non-GAAP) | $167.7 million | $162.8 million | $155.0 million | $147.2 million | $146.2 million |
| PPNR, as adjusted (non-GAAP) | $167.1 million | $157.7 million | $150.4 million | $142.8 million | $145.2 million |
| Pre-tax net income to total revenue (net) | 54.35% | 57.38% | 56.08% | 56.58% | 50.11% |
| Pre-tax net income, as adjusted, to total revenue (net) (non-GAAP) | 54.14% | 55.53% | 54.39% | 54.91% | 49.74% |
| P5NR (Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP) | 59.46% | 58.64% | 57.19% | 56.58% | 56.57% |
| P5NR, as adjusted (non-GAAP) | 59.25% | 56.80% | 55.49% | 54.91% | 56.20% |
| ROA | 2.06% | 2.17% | 2.08% | 2.07% | 1.77% |
| ROA, as adjusted (non-GAAP) | 2.05% | 2.10% | 2.02% | 2.01% | 1.76% |
| NIM | 4.61% | 4.56% | 4.44% | 4.44% | 4.39% |
| Purchase accounting accretion | $1.3 million | $1.3 million | $1.2 million | $1.4 million | $1.6 million |
| ROE | 11.04% | 11.91% | 11.77% | 11.75% | 10.13% |
| ROE, as adjusted (non-GAAP) | 11.01% | 11.54% | 11.39% | 11.41% | 10.05% |
| ROTCE (non-GAAP) | 16.65% | 18.28% | 18.26% | 18.39% | 15.94% |
| ROTCE, as adjusted (non-GAAP) | 16.60% | 17.70% | 17.68% | 17.87% | 15.82% |
| Diluted earnings per share | $0.60 | $0.63 | $0.60 | $0.58 | $0.51 |
| Diluted earnings per share, as adjusted (non-GAAP) | $0.60 | $0.61 | $0.58 | $0.56 | $0.50 |
| Non-performing assets to total assets | 0.55% | 0.56% | 0.60% | 0.56% | 0.63% |
| Common equity tier 1 capital | 16.3% | 16.1% | 15.6% | 15.4% | 15.1% |
| Leverage | 14.1% | 13.8% | 13.4% | 13.3% | 13.0% |
| Tier 1 capital | 16.3% | 16.1% | 15.6% | 15.4% | 15.1% |
| Total risk-based capital | 19.1% | 18.9% | 19.3% | 19.1% | 18.7% |
| Allowance for credit losses to total loans | 1.90% | 1.87% | 1.86% | 1.87% | 1.87% |
| Book value per share | $21.88 | $21.41 | $20.71 | $20.40 | $19.92 |
| Tangible book value per share (non-GAAP) | $14.60 | $14.13 | $13.44 | $13.15 | $12.68 |
| Dividends per share | $0.21 | $0.20 | $0.20 | $0.195 | $0.195 |
| Shareholder buyback yield | 0.27% | 0.18% | 0.49% | 0.53% | 0.05% |
Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.
Calculation of this metric is included in the schedules accompanying this release.
“HOMB delivered a record $475.4 million in annual income, driven by strong fourth-quarter results: a sub-40% efficiency ratio, $400.2 million in loan growth, robust margin and resolution of the Texas lawsuit which provided additional income. These accomplishments underscore our commitment to operational excellence and shareholder value,” said John Allison, Chairman.
Quarterly Financial Performance Trends
Net income increased steadily through the first three quarters of 2025, reaching a peak of $123.6 million in Q3. Net income, as adjusted (non-GAAP) followed a similar trend, ending the year at $117.9 million. In Q4, net income was $118.2 million, as the Company recorded $14.4 million in provision for credit losses primarily due to $400.2 million in 4th quarter loan growth. The full-year performance reflects strong profitability and disciplined financial management.
PPNR continued its upward trajectory throughout 2025, reflecting strong underlying earnings power. PPNR (non-GAAP) grew from $146.2 million at Q4 2024 to $167.7 million at Q4 2025. PPNR, as adjusted, (non-GAAP) increased to $167.1 million in Q4 2025 from $145.2 million in Q4 2024. This consistent growth highlights the strength of our operations and reinforces our ability to deliver sustained profitability and create long-term shareholder value.
Dollar amounts presented below in thousands.
Total revenue (net) demonstrated steady quarterly growth throughout 2025. Total revenue (net) increased from $258.4 million in Q4 2024 to $260.1 million in Q1 2025, followed by $271.0 million in Q2 and $277.7 million in Q3. By Q4 2025, it reached $282.1 million, reflecting continued momentum and strong performance across the year.
Interest expense declined steadily throughout 2025, decreasing from $105.6 million in Q4 2024 to $92.0 million in Q4 2025. Non-interest expense remained relatively stable, ranging from $112.2 million in Q4 2024 to $114.4 million in Q4 2025, with a peak of $116.0 million in Q2 2025, primarily due to legal claims expense. The overall trend reflects effective management of interest costs while maintaining consistent non-interest expense levels.
Dollar amounts presented below in thousands.
ROA demonstrated strong improvement in 2025, rising from 1.77% in Q4 2024 to a peak of 2.17% in Q3 2025. ROA, as adjusted, (non-GAAP) followed a similar trend, reaching 2.10% in Q3 2025. Despite a slight moderation in Q4 2025 resulting from the provision for credit losses, both measures ended the year above 2.0%, reflecting continued strength in asset utilization and profitability. These results underscore our ability to deliver superior returns and position the Company for sustained growth.
The chart below underscores the Company’s strong and consistent performance in managing operating expenses, as reflected in its efficiency ratio over the past five quarters. The efficiency ratio is a key metric that measures how effectively the Company converts its revenue into net income by comparing non-interest expenses to total revenue. A lower efficiency ratio indicates greater operational efficiency and cost discipline, which are essential for sustaining profitability and enhancing shareholder value.
The tables below present additional key financial metrics over the past five quarters, including net interest margin (NIM), yield on interest-earning assets, rate on interest-bearing liabilities, and net interest spread. These metrics are fundamental indicators of the Company’s profitability and operational efficiency.
Annual Financial Performance Trends
Net income has shown consistent growth over the past four years. In 2022, net income was $305.3 million, increasing by 29% to $392.9 million in 2023. Growth continued in 2024 with net income reaching $402.2 million, a 2% increase from the prior year. In 2025, net income rose significantly to $475.4 million, representing an 18% year-over-year increase and marking the highest level in the period.
Diluted earnings per share (DEPS) demonstrated strong growth over the past four years, rising from $1.57 in 2022 to $2.41 in 2025, an increase of 53%. Year-over-year, DEPS grew 24% in 2023, 4% in 2024, and accelerated to 20% in 2025, reflecting improved profitability. Shares outstanding declined steadily during the same period, moving from 203.4 million in 2022 to 196.4 million in 2025, a reduction of approximately 3.5%, which contributed to the increase in per-share earnings. This combination of higher earnings and reduced share count underscores the Company’s commitment to enhancing shareholder value.
Dollar and share amounts presented below in thousands.
Operating Highlights
Net income for the three-month period ended December 31, 2025 was $118.2 million, or $0.60 diluted earnings per share. When adjusting for non-fundamental items, net income and diluted earnings per share on an as-adjusted basis (non-GAAP), were $117.9 million and $0.60 per share, respectively, for the three months ended December 31, 2025.
Our net interest margin was 4.61% and 4.56% for the three-month periods ended December 31, 2025 and September 30, 2025, respectively. The yield on loans was 7.30% and 7.39% for the three months ended December 31, 2025 and September 30, 2025, respectively, as average loans increased from $15.22 billion to $15.51 billion. The rate on interest bearing deposits decreased to 2.47% as of December 31, 2025, from 2.62% as of September 30, 2025, while average interest-bearing deposits increased from $13.32 billion to $13.47 billion.
During the fourth quarter of 2025, there was $2.6 million of event interest income compared to $1.5 million of event interest income for the third quarter of 2025. The increase in event income was accretive to the net interest margin by two basis points. Purchase accounting accretion on acquired loans was $1.3 million for both of the three-month periods ended December 31, 2025 and September 30, 2025, and average purchase accounting loan discounts were $13.8 million and $15.0 million for the three-month periods ended December 31, 2025 and September 30, 2025, respectively.
Net interest income on a fully taxable equivalent basis was $233.8 million for the three-month period ended December 31, 2025, and $229.1 million for the three-month period ended September 30, 2025. This increase in net interest income for the three-month period ended December 31, 2025, was the result of a $5.3 million decrease in interest expense, which was partially offset by a $565,000 decrease in interest income. The $5.3 million decrease in interest expense was due to a $4.2 million decrease in interest expense on deposits, a $648,000 decrease in interest expense on subordinated debt and a $393,000 decrease in interest expense on FHLB and other borrowed funds. The $565,000 decrease in interest income was primarily the result of a $1.8 million decrease in income from deposits with other banks and a $427,000 decrease in income from investments. These reductions were partially offset by a $1.7 million increase in loan income.
The Company reported $50.5 million of non-interest income for the fourth quarter of 2025. The most important components of non-interest income were $12.8 million from other income, $11.1 million from other service charges and fees, $10.5 million from service charges on deposit accounts, $5.1 million from trust fees, $4.7 million in mortgage lending income, $2.7 million from dividends from FHLB, FRB, FNBB and other, $1.4 million from the increase in cash value of life insurance and $1.2 million from the fair value adjustment for marketable securities. Included within other income was $4.9 million income from a recovery on a lawsuit.
Non-interest expense for the fourth quarter of 2025 was $114.4 million. The most important components of non-interest expense were $62.9 million salaries and employee benefits expense, $27.8 million in other operating expense, $14.4 million in occupancy and equipment expenses, $8.7 million in data processing expenses and $580,000 in merger and acquisition expenses. For the fourth quarter of 2025, our efficiency ratio was 39.54%, and our efficiency ratio, as adjusted (non-GAAP), was 39.53%.
Financial Condition
Total loans receivable were $15.69 billion at December 31, 2025, compared to $15.29 billion at September 30, 2025. Total loans receivable of $15.69 billion were a record for the Company. Total deposits were $17.48 billion at December 31, 2025, compared to $17.33 billion at September 30, 2025. Total assets were $22.88 billion at December 31, 2025, compared to $22.71 billion at September 30, 2025.
During the fourth quarter of 2025, the Company had a $400.2 million increase in loans. Our community banking footprint experienced $164.3 million in organic loan growth during the quarter ended December 31, 2025, and Centennial CFG experienced $235.9 million of organic loan growth and had loans of $2.01 billion at December 31, 2025.
Non-performing loans to total loans were 0.54% and 0.56% at December 31, 2025 and September 30, 2025, respectively. Non-performing assets to total assets were 0.55% and 0.56% at December 31, 2025 and September 30, 2025, respectively. Net loans charged-off were $2.5 million and $2.9 million for the three months ended December 31, 2025 and September 30, 2025, respectively. The charge-off detail by region for the quarters ended December 31, 2025 and September 30, 2025 can be seen below.
| For the Three Months Ended December 31, 2025 |
| (in thousands) | Texas | Arkansas | Centennial CFG | Shore Premier Finance | Florida | Alabama | Total |
| Charge-offs | $600 | $1,420 | $ - | $400 | $542 | $101 | $3,063 |
| Recoveries | (345) | (195) | - | (4) | (49) | (4) | (597) |
| Net charge-offs (recoveries) | $255 | $1,225 | $ - | $396 | $493 | $97 | $2,466 |
| For the Three Months Ended September 30, 2025 |
| (in thousands) | Texas | Arkansas | Centennial CFG | Shore Premier Finance | Florida | Alabama | Total |
| Charge-offs | $2,496 | $605 | $ - | $735 | $807 | $8 | $4,651 |
| Recoveries | (1,451) | (225) | - | (5) | (47) | (3) | (1,731) |
| Net charge-offs (recoveries) | $1,045 | $380 | $ - | $730 | $760 | $5 | $2,920 |
At December 31, 2025, non-performing loans were $85.0 million, and non-performing assets were $124.8 million. At September 30, 2025, non-performing loans were $85.2 million, and non-performing assets were $126.5 million.
The table below shows the non-performing loans and non-performing assets by region as of December 31, 2025:
| (in thousands) | Texas | Arkansas | Centennial CFG | Shore Premier Finance | Florida | Alabama | Total |
| Non-accrual loans | $24,234 | $18,234 | $787 | $10,048 | $24,645 | $54 | $78,002 |
| Loans 90+ days past due | 2,383 | 291 | - | 3,286 | 1,020 | - | 6,980 |
| Total non-performing loans | 26,617 | 18,525 | 787 | 13,334 | 25,665 | 54 | 84,982 |
| Foreclosed assets held for sale | 15,988 | 771 | 22,812 | - | 260 | - | 39,831 |
| Total other non-performing assets | 15,988 | 771 | 22,812 | - | 260 | - | 39,831 |
| Total non-performing assets | $42,605 | $19,296 | $23,599 | $13,334 | $25,925 | $54 | $124,813 |
The table below shows the non-performing loans and non-performing assets by region as September 30, 2025:
| (in thousands) | Texas | Arkansas | Centennial CFG | Shore Premier Finance | Florida | Alabama | Total |
| Non-accrual loans | $25,701 | $19,102 | $787 | $10,472 | $24,867 | $158 | $81,087 |
| Loans 90+ days past due | 3,167 | 704 | - | - | 254 | - | 4,125 |
| Total non-performing loans | 28,868 | 19,806 | 787 | 10,472 | 25,121 | 158 | 85,212 |
| Foreclosed assets held for sale | 16,711 | 972 | 22,812 | - | 768 | - | 41,263 |
| Total other non-performing assets | 16,711 | 972 | 22,812 | - | 768 | - | 41,263 |
| Total non-performing assets | $45,579 | $20,778 | $23,599 | $10,472 | $25,889 | $158 | $126,475 |
The Company’s allowance for credit losses on loans was $297.6 million at December 31, 2025, or 1.90% of total loans, compared to the allowance for credit losses on loans of $285.6 million, or 1.87% of total loans, at September 30, 2025. As of December 31, 2025 and September 30, 2025, the Company’s allowance for credit losses on loans was 350.17% and 335.22% of its total non-performing loans, respectively.
Shareholders’ equity was $4.30 billion at December 31, 2025, which increased approximately $81.9 million from September 30, 2025. The net increase in shareholders’ equity is primarily associated with the $77.0 million increase in retained earnings and the $17.2 million decrease in accumulated other comprehensive loss. This was partially offset by the $14.9 million in stock repurchases for the quarter. Book value per common share was $21.88 at December 31, 2025, compared to $21.41 at September 30, 2025. Tangible book value per common share (non-GAAP) was $14.60 at December 31, 2025, compared to $14.13 at September 30, 2025. Book value per common share, as of December 31, 2025, was a record for the Company.
Stock Repurchases and Dividends
During the three-month period ended December 31, 2025, the Company repurchased 540,706 shares of common stock, which equated to a shareholder buyback yield of 0.27%. In comparison, during the three-month period ended September 30, 2025, the Company repurchased 350,000 shares of common stock, which equated to a shareholder buyback yield of 0.18%. The Company defines shareholder buyback yield as the percentage of the Company’s market capitalization spent on share repurchases. It reflects how much the Company is returning to the shareholders by reducing the number of outstanding shares, and it is calculated by dividing the Company’s total share repurchase cost for the period by the Company’s total market capitalization at the beginning of the period.
In addition, during the quarter ended December 31, 2025, the Company paid a dividend of $0.21 per share. This cash dividend represented a $0.01 per share, or 5.0%, increase over the $0.20 cash dividend paid during the third quarter of 2025.
Branches
The Company currently has 75 branches in Arkansas, 78 branches in Florida, 59 branches in Texas, 5 branches in Alabama and one branch in New York City.
Acquisition
The Company’s previously announced acquisition of Mountain Commerce Bancshares, Inc. (“MCBI”) and its bank subsidiary, Mountain Commerce Bank, is currently expected to close during the first half of 2026 and is subject to the approval of the shareholders of each company, regulatory approvals and other customary closing conditions.
Conference Call
Management will conduct a conference call to review this information at 1:00 p.m. CT (2:00 p.m. ET) on Thursday, January 15, 2026. We strongly encourage all participants to pre-register for the conference call webcast or the live call using one of the following links. First, participants can pre-register for the conference call webcast using the following link: https://events.q4inc.com/attendee/310151620. Participants who pre-register will be given a unique webcast link to gain immediate access to the conference call webcast. Second, participants can pre-register for the live call using the following link: https://www.netroadshow.com/events/login/LE9zwo3kK6J6SjV2b5r4rf2GdIxxCyTzC0Q. Participants who pre-register will be given the phone number and unique access codes to gain immediate access to the live call. Participants may pre-register now, or at any time prior to the call, and will immediately receive simple instructions via email. The Home BancShares conference call will also be scheduled as an event in your Outlook calendar.
Those without internet access or unable to pre-register may dial in and listen to the live call by calling 1-833-470-1428, Passcode: 099220. A replay of the call will be available by calling 1-866-813-9403, Passcode: 784585, which will be available until January 22, 2026, at 10:59 p.m. CT. Internet access to the call will be available live or in recorded version on the Company's website at www.homebancshares.com.
About Home BancShares
Home BancShares, Inc. is a bank holding company headquartered in Conway, Arkansas. Its wholly-owned subsidiary, Centennial Bank, provides a broad range of commercial and retail banking plus related financial services to businesses, real estate developers, investors, individuals and municipalities. Centennial Bank has branch locations in Arkansas, Florida, Texas, South Alabama and New York City. The Company’s common stock is traded through the New York Stock Exchange under the symbol “HOMB.” The Company was founded in 1998. Visit www.homebancshares.com or www.my100bank.com for more information.
Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles (GAAP). The Company’s management uses these non-GAAP financial measures--including net income (earnings), as adjusted; pre-tax, pre-provision, net income (PPNR); PPNR, as adjusted; pre-tax net income, as adjusted, to total revenue (net); pre-tax, pre-provision, profit percentage; pre-tax, pre-provision, profit percentage, as adjusted; diluted earnings per common share, as adjusted; return on average assets, as adjusted; return on average assets excluding intangible amortization; return on average assets, as adjusted, excluding intangible amortization; return on average common equity, as adjusted; return on average tangible common equity; return on average tangible common equity, as adjusted; return on average tangible common equity excluding intangible amortization; return on average tangible common equity, as adjusted, excluding intangible amortization; efficiency ratio, as adjusted; tangible book value per common share and tangible common equity to tangible assets--to provide meaningful supplemental information regarding our performance. These measures typically adjust GAAP performance measures to include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant items or transactions that management believes are not indicative of the Company’s primary business operating results. Since the presentation of these GAAP performance measures and their impact differ between companies, management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s business. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.
(1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.
(2) Calculation of this metric is included in the schedules accompanying this release.
General
Forward-looking statements notice
This release contains forward-looking statements regarding the Company’s plans, expectations, goals and outlook for the future, including future financial results. Statements in this press release that are not historical facts should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees of future events, performance or results. When we use words or phrases like “may,” “plan,” “propose,” “contemplate,” “anticipate,” “believe,” “intend,” “continue,” “expect,” “project,” “predict,” “estimate,” “could,” “should,” “would” and similar expressions, you should consider them as identifying forward-looking statements, although we may use other phrasing. Forward-looking statements of this type speak only as of the date of this news release. By nature, forward-looking statements involve inherent risks and uncertainties. Various factors could cause actual results to differ materially from those contemplated by the forward-looking statements. These factors include, but are not limited to, the following: economic conditions, credit quality, interest rates, loan demand, real estate values and unemployment, including any future impacts from inflation or changes in tariffs or trade policies; the possibility that the proposed acquisition of MCBI does not close when expected or at all because required regulatory, shareholder or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all; the possibility that such transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; the risk that the benefits from the transaction may not be fully realized or may take longer to realize than expected, including as a result of changes in general economic and market conditions, interest and exchange rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which Home and MCBI operate; the ability to promptly and effectively integrate the businesses of Home and MCBI; the reaction to the transaction of the companies’ customers, employees and counterparties; diversion of management time on acquisition-related issues; the effect of any future mergers, acquisitions or other transactions to which we or our bank subsidiary may from time to time be a party, including as a result of one or more of the factors described above as they would relate to such transaction; the ability to identify, complete and successfully integrate additional acquisitions; the availability of and access to capital and liquidity on terms acceptable to us; legislative and regulatory changes and risks and expenses associated with current and future legislation and regulations; technological changes and cybersecurity risks and incidents; the effects of changes in accounting policies and practices; changes in governmental monetary and fiscal policies; political instability, military conflicts and other major domestic or international events; the impacts of recent or future adverse weather events, including hurricanes, and other natural disasters; disruptions, uncertainties and related effects on credit quality, liquidity and other aspects of our business and operations that may result from any future public health crises; competition from other financial institutions; potential claims, expenses and other adverse effects related to current or future litigation, regulatory examinations or other government actions; potential increases in deposit insurance assessments, increased regulatory scrutiny or market disruptions resulting from financial challenges in the banking industry; changes in the assumptions used in making the forward-looking statements; and other factors described in reports we file with the Securities and Exchange Commission (the “SEC”), including those factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 27, 2025.
Additional Important Information and Where to Find It
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval with respect to the proposed business combination transaction involving Home and MCBI. No offer of securities shall be made except by means of a prospectus meeting the requirements of the Securities Act of 1933, as amended, and no offer to sell or solicitation of an offer to buy shall be made in any jurisdiction in which such offer, solicitation or sale would be unlawful. In connection with the proposed acquisition, Home has filed with the SEC a Registration Statement on Form S-4 (the “Registration Statement”) to register the shares of Home common stock to be issued to shareholders of MCBI in connection with the transaction. The Registration Statement, when it is declared effective by the SEC, will include a Proxy Statement of MCBI and a Prospectus of Home, as well as other relevant materials regarding the proposed merger transaction involving Home and MCBI. INVESTORS AND SECURITY HOLDERS OF MCBI ARE ADVISED TO READ THE PROXY STATEMENT/PROSPECTUS WHEN IT BECOMES AVAILABLE AND ANY OTHER DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE MERGER OR INCORPORATED BY REFERENCE IN THE PROXY STATEMENT/PROSPECTUS BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION REGARDING THE PROPOSED MERGER TRANSACTION. Investors and security holders may obtain free copies of these documents, once they are filed, and other documents filed with the SEC on the SEC’s website at http://www.sec.gov. Investors and security holders may also obtain free copies of the documents filed with the SEC by Home at Home’s website at http://www.homebancshares.com, Investor Relations, or by contacting Donna Townsell, by telephone at (501) 328-4625.
Participants in Solicitation
Home and MCBI and certain of their directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of MCBI in connection with the merger transaction. Information about the directors and executive officers of Home and their ownership of Home common stock is set forth in the proxy statement for Home’s 2025 Annual Meeting of Shareholders, as filed with the SEC on Schedule 14A on March 7, 2025. Information about the directors and executive officers of MCBI and their ownership of MCBI common stock will be set forth in the Proxy Statement/Prospectus included in the Registration Statement. Additional information regarding the interests of those participants and other persons who may be deemed participants in the transaction may be obtained by reading the Proxy Statement/Prospectus regarding the merger transaction. Free copies of this document may be obtained as described in the preceding paragraph when it becomes available.
Consolidated End of Period Balance Sheets
(Unaudited)
| (In thousands) | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 |
| ASSETS | | | | | |
| Cash and due from banks | $237,224 | $284,750 | $291,344 | $319,747 | $281,063 |
| Interest-bearing deposits with other banks | 430,113 | 516,170 | 809,729 | 975,983 | 629,284 |
| Cash and cash equivalents | 667,337 | 800,920 | 1,101,073 | 1,295,730 | 910,347 |
| Federal funds sold | 3,000 | 3,625 | 2,600 | 6,275 | 3,725 |
| Investment securities - available-for-sale, net of allowance for credit losses | 2,871,931 | 2,924,496 | 2,899,968 | 3,003,320 | 3,072,639 |
| Investment securities - held-to-maturity, net of allowance for credit losses | 1,259,262 | 1,264,200 | 1,265,292 | 1,269,896 | 1,275,204 |
| Total investment securities | 4,131,193 | 4,188,696 | 4,165,260 | 4,273,216 | 4,347,843 |
| Loans receivable | 15,686,209 | 15,285,972 | 15,180,624 | 14,952,116 | 14,764,500 |
| Allowance for credit losses | (297,583) | (285,649) | (281,869) | (279,944) | (275,880) |
| Loans receivable, net | 15,388,626 | 15,000,323 | 14,898,755 | 14,672,172 | 14,488,620 |
| Bank premises and equipment, net | 369,324 | 374,515 | 379,729 | 384,843 | 386,322 |
| Foreclosed assets held for sale | 39,831 | 41,263 | 41,529 | 39,680 | 43,407 |
| Cash value of life insurance | 220,469 | 219,075 | 218,113 | 221,621 | 219,786 |
| Accrued interest receivable | 108,939 | 110,702 | 107,732 | 115,983 | 120,129 |
| Deferred tax asset, net | 148,022 | 155,963 | 174,323 | 170,120 | 186,697 |
| Goodwill | 1,398,253 | 1,398,253 | 1,398,253 | 1,398,253 | 1,398,253 |
| Core deposit intangible | 32,293 | 34,231 | 36,255 | 38,280 | 40,327 |
| Other assets | 374,592 | 380,236 | 383,400 | 376,030 | 345,292 |
| Total assets | $22,881,879 | $22,707,802 | $22,907,022 | $22,992,203 | $22,490,748 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | |
| Deposits: | | | | | |
| Demand and non-interest-bearing | $3,868,405 | $3,880,101 | $4,024,574 | $4,079,289 | $4,006,115 |
| Savings and interest-bearing transaction accounts | 11,792,828 | 11,500,921 | 11,571,949 | 11,586,106 | 11,347,850 |
| Time deposits | 1,818,724 | 1,946,674 | 1,891,909 | 1,876,096 | 1,792,332 |
| Total deposits | 17,479,957 | 17,327,696 | 17,488,432 | 17,541,491 | 17,146,297 |
| Securities sold under agreements to repurchase | 155,803 | 145,998 | 140,813 | 161,401 | 162,350 |
| FHLB and other borrowed funds | 500,250 | 550,500 | 550,500 | 600,500 | 600,750 |
| Accrued interest payable and other liabilities | 169,733 | 189,551 | 203,004 | 207,154 | 181,080 |
| Subordinated debentures | 279,265 | 279,093 | 438,957 | 439,102 | 439,246 |
| Total liabilities | 18,585,008 | 18,492,838 | 18,821,706 | 18,949,648 | 18,529,723 |
| Shareholders' equity | | | | | |
| Common stock | 1,964 | 1,969 | 1,972 | 1,982 | 1,989 |
| Capital surplus | 2,201,923 | 2,214,211 | 2,221,576 | 2,246,312 | 2,272,794 |
| Retained earnings | 2,258,871 | 2,181,911 | 2,097,712 | 2,018,801 | 1,942,350 |
| Accumulated other comprehensive loss | (165,887) | (183,127) | (235,944) | (224,540) | (256,108) |
| Total shareholders' equity | 4,296,871 | 4,214,964 | 4,085,316 | 4,042,555 | 3,961,025 |
| Total liabilities and shareholders' equity | $22,881,879 | $22,707,802 | $22,907,022 | $22,992,203 | $22,490,748 |
Consolidated Statements of Income
(Unaudited)
| Quarter Ended | Year Ended |
|---|
| (In thousands) | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Dec 31, 2025 | Dec 31, 2024 |
| Interest income: | | | | | | | |
| Loans | $285,491 | $283,165 | $276,041 | $270,784 | $278,409 | $1,115,481 | $1,100,004 |
| Investment securities | | | | | | | |
| Taxable | 25,860 | 26,326 | 26,444 | 27,433 | 28,943 | 106,063 | 125,765 |
| Tax-exempt | 7,834 | 7,743 | 7,626 | 7,650 | 7,704 | 30,853 | 30,980 |
| Deposits - other banks | 4,405 | 6,242 | 8,951 | 6,620 | 7,585 | 26,218 | 42,773 |
| Federal funds sold | 41 | 56 | 53 | 55 | 73 | 205 | 255 |
| Total interest income | 323,631 | 323,532 | 319,115 | 312,542 | 322,714 | 1,278,820 | 1,299,777 |
| Interest expense: | | | | | | | |
| Interest on deposits | 83,739 | 87,962 | 88,489 | 86,786 | 90,564 | 346,976 | 376,638 |
| Federal funds purchased | - | - | - | - | - | - | 1 |
| FHLB and other borrowed funds | 4,985 | 5,378 | 5,539 | 5,902 | 9,541 | 21,804 | 52,455 |
| Securities sold under agreements to repurchase | 962 | 1,019 | 1,012 | 1,074 | 1,346 | 4,067 | 5,448 |
| Subordinated debentures | 2,359 | 3,007 | 4,123 | 4,124 | 4,121 | 13,613 | 16,461 |
| Total interest expense | 92,045 | 97,366 | 99,163 | 97,886 | 105,572 | 386,460 | 451,003 |
| Net interest income | 231,586 | 226,166 | 219,952 | 214,656 | 217,142 | 892,360 | 848,774 |
| Provision for credit losses on loans | 14,400 | 6,700 | 3,000 | - | 16,700 | 24,100 | 48,400 |
| Recovery of credit losses on unfunded commitments | - | (1,000) | - | - | - | (1,000) | - |
| Recovery of credit losses on investment securities | - | (2,194) | - | - | - | (2,194) | (330) |
| Total credit loss expense | 14,400 | 3,506 | 3,000 | - | 16,700 | 20,906 | 48,070 |
| Net interest income after credit loss expense | 217,186 | 222,660 | 216,952 | 214,656 | 200,442 | 871,454 | 800,704 |
| Non-interest income: | | | | | | | |
| Service charges on deposit accounts | 10,480 | 10,486 | 9,552 | 9,650 | 9,935 | 40,168 | 39,223 |
| Other service charges and fees | 11,148 | 12,130 | 12,643 | 10,689 | 11,651 | 46,610 | 43,009 |
| Trust fees | 5,121 | 4,600 | 5,234 | 4,760 | 4,526 | 19,715 | 18,717 |
| Mortgage lending income | 4,680 | 4,691 | 4,780 | 3,599 | 3,518 | 17,750 | 15,789 |
| Insurance commissions | 460 | 574 | 589 | 535 | 483 | 2,158 | 2,151 |
| Increase in cash value of life insurance | 1,400 | 1,404 | 1,415 | 1,842 | 1,215 | 6,061 | 4,850 |
| Dividends from FHLB, FRB, FNBB & other | 2,678 | 2,658 | 2,657 | 2,718 | 2,820 | 10,711 | 11,462 |
| Gain on SBA loans | 308 | 46 | - | 288 | 218 | 642 | 617 |
| Gain (loss) on branches, equipment and other assets, net | 11 | (66) | 972 | (163) | 26 | 754 | 2,102 |
| Gain (loss) on OREO, net | 203 | (1) | 13 | (376) | (2,423) | (161) | (2,272) |
| Fair value adjustment for marketable securities | 1,173 | 1,020 | (238) | 442 | 850 | 2,397 | 2,971 |
| Other income | 12,838 | 13,963 | 13,462 | 11,442 | 8,403 | 51,705 | 29,955 |
| Total non-interest income | 50,500 | 51,505 | 51,079 | 45,426 | 41,222 | 198,510 | 168,574 |
| Non-interest expense: | | | | | | | |
| Salaries and employee benefits | 62,891 | 63,804 | 64,318 | 61,855 | 60,824 | 252,868 | 241,022 |
| Occupancy and equipment | 14,434 | 14,828 | 14,023 | 14,425 | 14,526 | 57,710 | 58,031 |
| Data processing expense | 8,653 | 8,871 | 8,364 | 8,558 | 9,324 | 34,446 | 36,494 |
| Merger and acquisition expenses | 580 | - | - | - | - | 580 | - |
| Other operating expenses | 27,805 | 27,335 | 29,335 | 28,090 | 27,536 | 112,565 | 111,389 |
| Total non-interest expense | 114,363 | 114,838 | 116,040 | 112,928 | 112,210 | 458,169 | 446,936 |
| Income before income taxes | 153,323 | 159,327 | 151,991 | 147,154 | 129,454 | 611,795 | 522,342 |
| Income tax expense | 35,098 | 35,723 | 33,588 | 31,945 | 28,890 | 136,354 | 120,101 |
| Net income | $118,225 | $123,604 | $118,403 | $115,209 | $100,564 | $475,441 | $402,241 |
Selected Financial Information
(Unaudited)
| Quarter Ended | Year Ended |
|---|
| (Dollars and shares in thousands, except per share data) | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Dec 31, 2025 | Dec 31, 2024 |
| PER SHARE DATA | | | | | | | |
| Diluted earnings per common share | | $0.60 | | $0.63 | | $0.60 | | $0.58 | | $0.51 | | $2.41 | | $2.01 |
| Diluted earnings per common share, as adjusted (non-GAAP) | | 0.60 | | 0.61 | | 0.58 | | 0.56 | | 0.50 | | 2.35 | | 2.01 |
| Basic earnings per common share | | 0.60 | | 0.63 | | 0.60 | | 0.58 | | 0.51 | | 2.41 | | 2.01 |
| Dividends per share - common | | 0.21 | | 0.20 | | 0.200 | | 0.195 | | 0.195 | | 0.805 | | 0.750 |
| Shareholder buyback yield | | 0.27% | | 0.18% | | 0.49% | | 0.53% | | 0.05% | | 1.46% | | 1.69% |
| Book value per common share | | $21.88 | | $21.41 | | $20.71 | | $20.40 | | $19.92 | | $21.88 | | $19.92 |
| Tangible book value per common share (non-GAAP) | | 14.60 | | 14.13 | | 13.44 | | 13.15 | | 12.68 | | 14.60 | | 12.68 |
| STOCK INFORMATION | | | | | | | |
| Average common shares outstanding | | 196,553 | | 197,078 | | 197,532 | | 198,657 | | 198,863 | | 197,448 | | 199,939 |
| Average diluted shares outstanding | | 196,764 | | 197,288 | | 197,765 | | 198,852 | | 198,973 | | 197,651 | | 200,069 |
| End of period common shares outstanding | | 196,357 | | 196,889 | | 197,239 | | 198,206 | | 198,882 | | 196,357 | | 198,882 |
| ANNUALIZED PERFORMANCE METRICS | | | | | | | |
| Return on average assets (ROA) | 2.06 %% | | 2.17 %% | | 2.08 %% | | 2.07 %% | | 1.77 %% | | 2.10 %% | | 1.77 %% | |
| Return on average assets, as adjusted: (ROA, as adjusted) (non-GAAP) | 2.05 | | 2.10 | | 2.02 | | 2.01 | | 1.76 | | 2.05 | | 1.77 | |
| Return on average assets excluding intangible amortization (non-GAAP) | 2.22 | | 2.34 | | 2.25 | | 2.24 | | 1.92 | | 2.26 | | 1.92 | |
| Return on average assets, as adjusted, excluding intangible amortization (non-GAAP) | 2.22 | | 2.27 | | 2.18 | | 2.18 | | 1.91 | | 2.21 | | 1.92 | |
| Return on average common equity (ROE) | 11.04 | | 11.91 | | 11.77 | | 11.75 | | 10.13 | | 11.61 | | 10.43 | |
| Return on average common equity, as adjusted: (ROE, as adjusted) (non-GAAP) | 11.01 | | 11.54 | | 11.39 | | 11.41 | | 10.05 | | 11.33 | | 10.42 | |
| Return on average tangible common equity (ROTCE) (non-GAAP) | 16.65 | | 18.28 | | 18.26 | | 18.39 | | 15.94 | | 17.87 | | 16.66 | |
| Return on average tangible common equity, as adjusted: (ROTCE, as adjusted) (non-GAAP) | 16.60 | | 17.70 | | 17.68 | | 17.87 | | 15.82 | | 17.44 | | 16.64 | |
| Return on average tangible common equity excluding intangible amortization (non-GAAP) | 16.85 | | 18.51 | | 18.50 | | 18.64 | | 16.18 | | 18.10 | | 16.92 | |
| Return on average tangible common equity, as adjusted, excluding intangible amortization (non-GAAP) | 16.80 | | 17.93 | | 17.92 | | 18.12 | | 16.07 | | 17.67 | | 16.91 | |
(1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.
(2) Calculation of this metric is included in the schedules accompanying this release.
Selected Financial Information
(Unaudited)
| Quarter Ended | Year Ended |
|---|
| (Dollars in thousands) | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Dec 31, 2025 | Dec 31, 2024 |
| Efficiency ratio | 39.54 %% | | 40.21 %% | | 41.68 %% | | 42.22 %% | | 42.24 %% | | 40.88 %% | | 42.74 %% | |
| Efficiency ratio, as adjusted (non-GAAP) | 39.53 | | 40.95 | | 42.01 | | 42.84 | | 42.00 | | 41.29 | | 42.65 | |
| Net interest margin - FTE (NIM) | 4.61 | | 4.56 | | 4.44 | | 4.44 | | 4.39 | | 4.51 | | 4.27 | |
| Fully taxable equivalent adjustment | | $2,252 | | $2,916 | | $2,526 | | $2,534 | | $2,398 | | $10,228 | | $8,534 |
| Total revenue (net) | | 282,086 | | 277,671 | | 271,031 | | 260,082 | | 258,364 | | 1,090,870 | | 1,017,348 |
| Pre-tax, pre-provision, net income (PPNR) (non-GAAP) | | 167,723 | | 162,833 | | 154,991 | | 147,154 | | 146,154 | | 632,701 | | 570,412 |
| PPNR, as adjusted (non-GAAP) | | 167,130 | | 157,704 | | 150,404 | | 142,821 | | 145,209 | | 618,059 | | 567,385 |
| Pre-tax net income to total revenue (net) | 54.35 %% | | 57.38 %% | | 56.08 %% | | 56.58 %% | | 50.11 %% | | 56.08 %% | | 51.34 %% | |
| Pre-tax net income, as adjusted, to total revenue (net) (non-GAAP) | 54.14 | | 55.53 | | 54.39 | | 54.91 | | 49.74 | | 54.74 | | 51.05 | |
| P5NR ((Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP) | 59.46 | | 58.64 | | 57.19 | | 56.58 | | 56.57 | | 58.00 | | 56.07 | |
| P5NR, as adjusted (non-GAAP) | 59.25 | | 56.80 | | 55.49 | | 54.91 | | 56.20 | | 56.66 | | 55.77 | |
| Total purchase accounting accretion | | $1,265 | | $1,272 | | $1,233 | | $1,378 | | $1,610 | | $5,148 | | $8,133 |
| Average purchase accounting loan discounts | | 13,753 | | 15,009 | | 16,219 | | 17,493 | | 19,090 | | 15,626 | | 21,882 |
| OTHER OPERATING EXPENSES | | | | | | | |
| Advertising | | $2,114 | | $2,149 | | $2,054 | | $1,928 | | $1,941 | | $8,245 | | $7,097 |
| Amortization of intangibles | | 1,938 | | 2,024 | | 2,025 | | 2,047 | | 2,068 | | 8,034 | | 8,443 |
| Electronic banking expense | | 3,288 | | 3,357 | | 3,172 | | 3,055 | | 3,307 | | 12,872 | | 13,444 |
| Directors' fees | | 388 | | 405 | | 431 | | 452 | | 356 | | 1,676 | | 1,639 |
| Due from bank service charges | | 324 | | 404 | | 283 | | 281 | | 271 | | 1,292 | | 1,131 |
| FDIC and state assessment | | 2,970 | | 3,245 | | 1,636 | | 3,387 | | 3,216 | | 11,238 | | 15,388 |
| Insurance | | 1,044 | | 1,110 | | 1,049 | | 999 | | 900 | | 4,202 | | 3,634 |
| Legal and accounting | | 1,362 | | 1,061 | | 2,360 | | 3,641 | | 2,361 | | 8,424 | | 8,961 |
| Other professional fees | | 2,168 | | 2,083 | | 2,211 | | 1,947 | | 1,736 | | 8,409 | | 8,142 |
| Operating supplies | | 759 | | 773 | | 711 | | 711 | | 711 | | 2,954 | | 2,680 |
| Postage | | 564 | | 538 | | 488 | | 503 | | 518 | | 2,093 | | 2,060 |
| Telephone | | 382 | | 367 | | 419 | | 436 | | 438 | | 1,604 | | 1,807 |
| Other expense | | 10,504 | | 9,819 | | 12,496 | | 8,703 | | 9,713 | | 41,522 | | 36,963 |
| Total other operating expenses | | $27,805 | | $27,335 | | $29,335 | | $28,090 | | $27,536 | | $112,565 | | $111,389 |
(1) Calculation of this metric and the reconciliation to GAAP are included in the schedules accompanying this release.
Selected Financial Information
(Unaudited)
| (Dollars in thousands) | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 |
| BALANCE SHEET RATIOS | | | | | |
| Total loans to total deposits | 89.74 %% | | 88.22 %% | | 86.80 %% | | 85.24 %% | | 86.11 %% | |
| Common equity to assets | 18.78 | | 18.56 | | 17.83 | | 17.58 | | 17.61 | |
| Tangible common equity to tangible assets (non-GAAP) | 13.36 | | 13.08 | | 12.35 | | 12.09 | | 11.98 | |
| LOANS RECEIVABLE | | | | | |
| Real estate | | | | | |
| Commercial real estate loans | | | | | |
| Non-farm/non-residential | | $5,290,112 | | $5,494,492 | | $5,553,182 | | $5,588,681 | | $5,426,780 |
| Construction/land development | | 2,726,993 | | 2,709,197 | | 2,695,561 | | 2,735,760 | | 2,736,214 |
| Agricultural | | 332,412 | | 331,301 | | 315,926 | | 335,437 | | 336,993 |
| Residential real estate loans | | | | | |
| Residential 1-4 family | | 2,134,334 | | 2,142,375 | | 2,138,990 | | 1,947,872 | | 1,956,489 |
| Multifamily residential | | 1,140,911 | | 716,595 | | 620,439 | | 576,089 | | 496,484 |
| Total real estate | | 11,624,762 | | 11,393,960 | | 11,324,098 | | 11,183,839 | | 10,952,960 |
| Consumer | | 1,253,746 | | 1,233,523 | | 1,218,834 | | 1,227,745 | | 1,234,361 |
| Commercial and industrial | | 2,222,401 | | 2,100,268 | | 2,107,326 | | 2,045,036 | | 2,022,775 |
| Agricultural | | 359,879 | | 346,167 | | 323,457 | | 314,323 | | 367,251 |
| Other | | 225,421 | | 212,054 | | 206,909 | | 181,173 | | 187,153 |
| Loans receivable | | $15,686,209 | | $15,285,972 | | $15,180,624 | | $14,952,116 | | $14,764,500 |
| ALLOWANCE FOR CREDIT LOSSES | | | | | |
| Balance, beginning of period | | $285,649 | | $281,869 | | $279,944 | | $275,880 | | $312,574 |
| Loans charged off | | 3,063 | | 4,651 | | 4,071 | | 3,458 | | 53,959 |
| Recoveries of loans previously charged off | | 597 | | 1,731 | | 2,996 | | 7,522 | | 565 |
| Net loans charged off (recovered) | | 2,466 | | 2,920 | | 1,075 | | (4,064) | | 53,394 |
| Provision for credit losses - loans | | 14,400 | | 6,700 | | 3,000 | | - | | 16,700 |
| Balance, end of period | | $297,583 | | $285,649 | | $281,869 | | $279,944 | | $275,880 |
| Net charge-offs (recoveries) to average total loans | 0.06 %% | | 0.08 %% | | 0.03 %% | | (0.11)%% | | 1.44 %% | |
| Allowance for credit losses to total loans | 1.90 | | 1.87 | | 1.86 | | 1.87 | | 1.87 | |
| NON-PERFORMING ASSETS | | | | | |
| Non-performing loans | | | | | |
| Non-accrual loans | | $78,002 | | $81,087 | | $89,261 | | $86,383 | | $93,853 |
| Loans past due 90 days or more | | 6,980 | | 4,125 | | 7,031 | | 3,264 | | 5,034 |
| Total non-performing loans | | 84,982 | | 85,212 | | 96,292 | | 89,647 | | 98,887 |
| Other non-performing assets | | | | | |
| Foreclosed assets held for sale, net | | 39,831 | | 41,263 | | 41,529 | | 39,680 | | 43,407 |
| Other non-performing assets | | - | | - | | - | | 63 | | 63 |
| Total other non-performing assets | | 39,831 | | 41,263 | | 41,529 | | 39,743 | | 43,470 |
| Total non-performing assets | | $124,813 | | $126,475 | | $137,821 | | $129,390 | | $142,357 |
| Allowance for credit losses for loans to non-performing loans | 350.17 %% | | 335.22 %% | | 292.72 %% | | 312.27 %% | | 278.99 %% | |
| Non-performing loans to total loans | 0.54 | | 0.56 | | 0.63 | | 0.60 | | 0.67 | |
| Non-performing assets to total assets | 0.55 | | 0.56 | | 0.60 | | 0.56 | | 0.63 | |
(1) Calculation of this metric and the reconciliation to GAAP is included in the schedules accompanying this release.
Consolidated Net Interest Margin
(Unaudited)
| Three Months Ended |
|---|
| December 31, 2025 | September 30, 2025 |
|---|
| (Dollars in thousands) | Average Balance | Income/ Expense | Yield/ Rate | Average Balance | Income/ Expense | Yield/ Rate |
| ASSETS | | | | | | |
| Earning assets | | | | | | |
| Interest-bearing balances due from banks | $450,187 | $4,405 | 3.88 %% | $567,617 | $6,242 | 4.36 %% |
| Federal funds sold | 4,177 | 41 | 3.89 | 5,142 | 56 | 4.32 |
| Investment securities - taxable | 3,001,146 | 25,860 | 3.42 | 3,039,247 | 26,326 | 3.44 |
| Investment securities - non-taxable - FTE | 1,166,233 | 10,240 | 3.48 | 1,115,834 | 10,201 | 3.63 |
| Loans receivable - FTE | 15,506,534 | 285,337 | 7.30 | 15,216,448 | 283,623 | 7.39 |
| Total interest-earning assets | 20,128,277 | 325,883 | 6.42 | 19,944,288 | 326,448 | 6.49 |
| Non-earning assets | 2,658,575 | | | 2,694,650 | | |
| Total assets | $22,786,852 | | | $22,638,938 | | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | |
| Liabilities | | | | | | |
| Interest-bearing liabilities | | | | | | |
| Savings and interest-bearing transaction accounts | $11,613,721 | $67,534 | 2.31 %% | $11,408,316 | $70,406 | 2.45 %% |
| Time deposits | 1,858,205 | 16,205 | 3.46 | 1,911,703 | 17,556 | 3.64 |
| Total interest-bearing deposits | 13,471,926 | 83,739 | 2.47 | 13,320,019 | 87,962 | 2.62 |
| Federal funds purchased | - | - | - | 11 | - | - |
| Securities sold under agreement to repurchase | 148,791 | 962 | 2.57 | 145,883 | 1,019 | 2.77 |
| FHLB and other borrowed funds | 518,188 | 4,985 | 3.82 | 550,501 | 5,378 | 3.88 |
| Subordinated debentures | 279,180 | 2,359 | 3.35 | 338,757 | 3,007 | 3.52 |
| Total interest-bearing liabilities | 14,418,085 | 92,045 | 2.53 | 14,355,171 | 97,366 | 2.69 |
| Non-interest bearing liabilities | | | | | | |
| Non-interest bearing deposits | 3,926,307 | | | 3,956,826 | | |
| Other liabilities | 193,604 | | | 211,057 | | |
| Total liabilities | 18,537,996 | | | 18,523,054 | | |
| Shareholders' equity | 4,248,856 | | | 4,115,884 | | |
| Total liabilities and shareholders' equity | $22,786,852 | | | $22,638,938 | | |
| Net interest spread | | | 3.89 %% | | | 3.80 %% |
| Net interest income and margin - FTE | | $233,838 | 4.61 | | $229,082 | 4.56 |
Consolidated Net Interest Margin
(Unaudited)
| Year Ended |
|---|
| December 31, 2025 | December 31, 2024 |
|---|
| (Dollars in thousands) | Average Balance | Income/ Expense | Yield/ Rate | Average Balance | Income/ Expense | Yield/ Rate |
| ASSETS | | | | | | |
| Earning assets | | | | | | |
| Interest-bearing balances due from banks | $610,338 | $26,218 | 4.30 %% | $819,445 | $42,773 | 5.22 %% |
| Federal funds sold | 4,821 | 205 | 4.25 | 5,035 | 255 | 5.06 |
| Investment securities - taxable | 3,078,265 | 106,063 | 3.45 | 3,400,325 | 125,765 | 3.70 |
| Investment securities - non-taxable - FTE | 1,132,761 | 40,535 | 3.58 | 1,190,033 | 39,057 | 3.28 |
| Loans receivable - FTE | 15,169,888 | 1,116,027 | 7.36 | 14,675,001 | 1,100,461 | 7.50 |
| Total interest-earning assets | 19,996,073 | 1,289,048 | 6.45 | 20,089,839 | 1,308,311 | 6.51 |
| Non-earning assets | 2,697,522 | | | 2,664,541 | | |
| Total assets | $22,693,595 | | | $22,754,380 | | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | |
| Liabilities | | | | | | |
| Interest-bearing liabilities | | | | | | |
| Savings and interest-bearing transaction accounts | $11,491,941 | $278,654 | 2.42 %% | $11,078,003 | $304,976 | 2.75 %% |
| Time deposits | 1,864,674 | 68,322 | 3.66 | 1,747,302 | 71,662 | 4.10 |
| Total interest-bearing deposits | 13,356,615 | 346,976 | 2.60 | 12,825,305 | 376,638 | 2.94 |
| Federal funds purchased | 14 | - | - | 20 | 1 | 5.00 |
| Securities sold under agreement to repurchase | 148,545 | 4,067 | 2.74 | 165,965 | 5,448 | 3.28 |
| FHLB and other borrowed funds | 558,839 | 21,804 | 3.90 | 1,197,662 | 52,455 | 4.38 |
| Subordinated debentures | 373,500 | 13,613 | 3.64 | 439,539 | 16,461 | 3.75 |
| Total interest-bearing liabilities | 14,437,513 | 386,460 | 2.68 | 14,628,491 | 451,003 | 3.08 |
| Non-interest bearing liabilities | | | | | | |
| Non-interest bearing deposits | 3,961,332 | | | 4,029,684 | | |
| Other liabilities | 199,307 | | | 238,528 | | |
| Total liabilities | 18,598,152 | | | 18,896,703 | | |
| Shareholders' equity | 4,095,443 | | | 3,857,677 | | |
| Total liabilities and shareholders' equity | $22,693,595 | | | $22,754,380 | | |
| Net interest spread | | | 3.77 %% | | | 3.43 %% |
| Net interest income and margin - FTE | | $902,588 | 4.51 | | $857,308 | 4.27 |
Non-GAAP Reconciliations
(Unaudited)
| Quarter Ended | Year Ended |
|---|
| (Dollars and shares in thousands, except per share data) | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Dec 31, 2025 | Dec 31, 2024 |
| NET INCOME (EARNINGS), AS ADJUSTED | | | | | | | |
| GAAP net income available to common shareholders (A) | | $118,225 | | $123,604 | | $118,403 | | $115,209 | | $100,564 | | $475,441 | | $402,241 |
| Pre-tax adjustments | | | | | | | |
| Merger and acquisition expense | | 580 | | - | | - | | - | | - | | 580 | | - |
| Gain on retirement of subordinated debt | | - | | (1,882) | | - | | - | | - | | (1,882) | | - |
| FDIC special assessment | | - | | - | | (1,516) | | - | | - | | (1,516) | | 2,260 |
| BOLI death benefits | | - | | (187) | | (1,243) | | - | | (95) | | (1,430) | | (257) |
| Gain on sale of premises and equipment | | - | | - | | (983) | | - | | - | | (983) | | (2,059) |
| Fair value adjustment for marketable securities | | (1,173) | | (1,020) | | 238 | | (442) | | (850) | | (2,397) | | (2,971) |
| Special income from equity investment | | - | | - | | (3,498) | | (3,891) | | - | | (7,389) | | - |
| Legal fee reimbursement | | - | | - | | (885) | | - | | - | | (885) | | - |
| Legal claims expense | | - | | - | | 3,300 | | - | | - | | 3,300 | | - |
| Recoveries on historic losses | | - | | (2,040) | | - | | - | | - | | (2,040) | | - |
| Total pre-tax adjustments | | (593) | | (5,129) | | (4,587) | | (4,333) | | (945) | | (14,642) | | (3,027) |
| Tax-effect of adjustments | | (231) | | (1,207) | | (817) | | (1,059) | | (208) | | (3,314) | | (688) |
| Deferred tax asset write-down | | - | | - | | - | | - | | - | | - | | 2,030 |
| Total adjustments after-tax (B) | | (362) | | (3,922) | | (3,770) | | (3,274) | | (737) | | (11,328) | | (309) |
| Net income, as adjusted (C) | | $117,863 | | $119,682 | | $114,633 | | $111,935 | | $99,827 | | $464,113 | | $401,932 |
| Average diluted shares outstanding (D) | | 196,764 | | 197,288 | | 197,765 | | 198,852 | | 198,973 | | 197,651 | | 200,069 |
| GAAP diluted earnings per share: (A/D) | | $0.60 | | $0.63 | | $0.60 | | $0.58 | | $0.51 | | $2.41 | | $2.01 |
| Adjustments after-tax: (B/D) | | - | | (0.02) | | (0.02) | | (0.02) | | (0.01) | | (0.06) | | - |
| Diluted earnings per common share, as adjusted: (C/D) | | $0.60 | | $0.61 | | $0.58 | | $0.56 | | $0.50 | | $2.35 | | $2.01 |
| ANNUALIZED RETURN ON AVERAGE ASSETS | | | | | | | |
| Return on average assets: (A/E) | 2.06 %% | | 2.17 %% | | 2.08 %% | | 2.07 %% | | 1.77 %% | | 2.10 %% | | 1.77 %% | |
| Return on average assets, as adjusted: (ROA, as adjusted) ((A+D)/E) | 2.05 | | 2.10 | | 2.02 | | 2.01 | | 1.76 | | 2.05 | | 1.77 | |
| Return on average assets excluding intangible amortization: ((A+C)/(E-F)) | 2.22 | | 2.34 | | 2.25 | | 2.24 | | 1.92 | | 2.26 | | 1.92 | |
| Return on average assets, as adjusted, excluding intangible amortization: ((A+C+D)/(E-F)) | 2.22 | | 2.27 | | 2.18 | | 2.18 | | 1.91 | | 2.21 | | 1.92 | |
| GAAP net income available to common shareholders (A) | | $118,225 | | $123,604 | | $118,403 | | $115,209 | | $100,564 | | $475,441 | | $402,241 |
| Amortization of intangibles (B) | | 1,938 | | 2,024 | | 2,025 | | 2,047 | | 2,068 | | 8,034 | | 8,443 |
| Amortization of intangibles after-tax (C) | | 1,466 | | 1,529 | | 1,530 | | 1,547 | | 1,563 | | 6,072 | | 6,345 |
| Adjustments after-tax (D) | | (362) | | (3,922) | | (3,770) | | (3,274) | | (737) | | (11,328) | | (309) |
| Average assets (E) | | 22,786,852 | | 22,638,938 | | 22,797,738 | | 22,548,835 | | 22,565,077 | | 22,693,595 | | 22,754,380 |
| Average goodwill & core deposit intangible (F) | | 1,431,479 | | 1,433,474 | | 1,435,480 | | 1,437,515 | | 1,439,566 | | 1,434,468 | | 1,442,713 |
Non-GAAP Reconciliations
(Unaudited)
| Quarter Ended | Year Ended |
|---|
| (Dollars in thousands) | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Dec 31, 2025 | Dec 31, 2024 |
| ANNUALIZED RETURN ON AVERAGE COMMON EQUITY | | | | | | | |
| Return on average common equity: (A/D) | 11.04 %% | | 11.91 %% | | 11.77 %% | | 11.75 %% | | 10.13 %% | | 11.61 %% | | 10.43 %% | |
| Return on average common equity, as adjusted: (ROE, as adjusted) ((A+C)/D) | 11.01 | | 11.54 | | 11.39 | | 11.41 | | 10.05 | | 11.33 | | 10.42 | |
| Return on average tangible common equity: (ROTCE) (A/(D-E)) | 16.65 | | 18.28 | | 18.26 | | 18.39 | | 15.94 | | 17.87 | | 16.66 | |
| Return on average tangible common equity, as adjusted: (ROTCE, as adjusted) ((A+C)/(D-E)) | 16.60 | | 17.70 | | 17.68 | | 17.87 | | 15.82 | | 17.44 | | 16.64 | |
| Return on average tangible common equity excluding intangible amortization: (B/(D-E)) | 16.85 | | 18.51 | | 18.50 | | 18.64 | | 16.18 | | 18.10 | | 16.92 | |
| Return on average tangible common equity, as adjusted, excluding intangible amortization: ((B+C)/(D-E)) | 16.80 | | 17.93 | | 17.92 | | 18.12 | | 16.07 | | 17.67 | | 16.91 | |
| GAAP net income available to common shareholders (A) | | $118,225 | | $123,604 | | $118,403 | | $115,209 | | $100,564 | | $475,441 | | $402,241 |
| Earnings excluding intangible amortization (B) | | 119,691 | | 125,133 | | 119,933 | | 116,756 | | 102,127 | | 481,513 | | 408,586 |
| Adjustments after-tax (C) | | (362) | | (3,922) | | (3,770) | | (3,274) | | (737) | | (11,328) | | (309) |
| Average common equity (D) | | 4,248,856 | | 4,115,884 | | 4,036,155 | | 3,977,671 | | 3,950,176 | | 4,095,443 | | 3,857,677 |
| Average goodwill & core deposits intangible (E) | | 1,431,479 | | 1,433,474 | | 1,435,480 | | 1,437,515 | | 1,439,566 | | 1,434,468 | | 1,442,713 |
| EFFICIENCY RATIO & P5NR | | | | | | | |
| Efficiency ratio: ((D-G)/(B+C+E)) | 39.54 %% | | 40.21 %% | | 41.68 %% | | 42.22 %% | | 42.24 %% | | 40.88 %% | | 42.74 %% | |
| Efficiency ratio, as adjusted: ((D-G-I)/(B+C+E-H)) | 39.53 | | 40.95 | | 42.01 | | 42.84 | | 42.00 | | 41.29 | | 42.65 | |
| Pre-tax net income to total revenue (net) (A/(B+C)) | 54.35 | | 57.38 | | 56.08 | | 56.58 | | 50.11 | | 56.08 | | 51.34 | |
| Pre-tax net income, as adjusted, to total revenue (net) ((A+F)/(B+C)) | 54.14 | | 55.53 | | 54.39 | | 54.91 | | 49.74 | | 54.74 | | 51.05 | |
| Pre-tax, pre-provision, net income (PPNR) (B+C-D) | | $167,723 | | $162,833 | | $154,991 | | $147,154 | | $146,154 | | $632,701 | | $570,412 |
| Pre-tax, pre-provision, net income, as adjusted (B+C-D+F) | | 167,130 | | 157,704 | | 150,404 | | 142,821 | | 145,209 | | 618,059 | | 567,385 |
| P5NR ((Pre-tax, pre-provision, profit percentage) PPNR to total revenue (net)) (B+C-D)/(B+C) | 59.46 %% | | 58.64 %% | | 57.19 %% | | 56.58 %% | | 56.57 %% | | 58.00 %% | | 56.07 %% | |
| P5NR, as adjusted (B+C-D+F-G)/(B+C) | 59.25 | | 56.80 | | 55.49 | | 54.91 | | 56.20 | | 56.66 | | 55.77 | |
| Pre-tax net income (A) | | $153,323 | | $159,327 | | $151,991 | | $147,154 | | $129,454 | | $611,795 | | $522,342 |
| Net interest income (B) | | 231,586 | | 226,166 | | 219,952 | | 214,656 | | 217,142 | | 892,360 | | 848,774 |
| Non-interest income (C) | | 50,500 | | 51,505 | | 51,079 | | 45,426 | | 41,222 | | 198,510 | | 168,574 |
| Non-interest expense (D) | | 114,363 | | 114,838 | | 116,040 | | 112,928 | | 112,210 | | 458,169 | | 446,936 |
| Fully taxable equivalent adjustment (E) | | 2,252 | | 2,916 | | 2,526 | | 2,534 | | 2,398 | | 10,228 | | 8,534 |
| Total pre-tax adjustments (F) | | (593) | | (5,129) | | (4,587) | | (4,333) | | (945) | | (14,642) | | (3,027) |
| Amortization of intangibles (G) | | 1,938 | | 2,024 | | 2,025 | | 2,047 | | 2,068 | | 8,034 | | 8,443 |
| Adjustments: | | | | | | | |
| Non-interest income: | | | | | | | |
| Gain on retirement of subordinated debt | $ - | | $1,882 | $ - | $ - | $ - | | $1,882 | $ - |
| Fair value adjustment for marketable securities | | 1,173 | | 1,020 | | (238) | | 442 | | 850 | | 2,397 | | 2,971 |
| Gain (loss) on OREO | | 203 | | (1) | | 13 | | (376) | | (2,423) | | (161) | | (2,272) |
| Gain (loss) on branches, equipment and other assets, net | | 11 | | (66) | | 972 | | (163) | | 26 | | 754 | | 2,102 |
| Special income from equity investment | | - | | - | | 3,498 | | 3,891 | | - | | 7,389 | | - |
| Legal expense reimbursement | | - | | - | | 885 | | - | | - | | 885 | | - |
| BOLI death benefits | | - | | 187 | | 1,243 | | - | | 95 | | 1,430 | | 257 |
| Recoveries on historic losses | | - | | 2,040 | | - | | - | | - | | 2,040 | | - |
| Total non-interest income adjustments (H) | | $1,387 | | $5,062 | | $6,373 | | $3,794 | | $(1,452) | | $16,616 | | $3,058 |
| Non-interest expense: | | | | | | | |
| FDIC special assessment | | - | | - | | (1,516) | | - | | - | | (1,516) | | 2,260 |
| Merger and acquisition expenses | | 580 | | - | | - | | - | | - | | 580 | | - |
| Legal claims expense | | - | | - | | 3,300 | | - | | - | | 3,300 | | - |
| Total non-interest expense adjustments (I) | | $580 | $ - | | $1,784 | $ - | $ - | | $2,364 | | $2,260 |
Non-GAAP Reconciliations
(Unaudited)
| Quarter Ended |
|---|
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 |
|---|
| TANGIBLE BOOK VALUE PER COMMON SHARE | | | | | |
| Book value per common share: (A/B) | | $21.88 | | $21.41 | | $20.71 | | $20.40 | | $19.92 |
| Tangible book value per common share: ((A-C-D)/B) | | 14.60 | | 14.13 | | 13.44 | | 13.15 | | 12.68 |
| Total shareholders' equity (A) | | $4,296,871 | | $4,214,964 | | $4,085,316 | | $4,042,555 | | $3,961,025 |
| End of period common shares outstanding (B) | | 196,357 | | 196,889 | | 197,239 | | 198,206 | | 198,882 |
| Goodwill (C) | | 1,398,253 | | 1,398,253 | | 1,398,253 | | 1,398,253 | | 1,398,253 |
| Core deposit and other intangibles (D) | | 32,293 | | 34,231 | | 36,255 | | 38,280 | | 40,327 |
| TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS | | | | | |
| Equity to assets: (B/A) | 18.78 %% | | 18.56 %% | | 17.83 %% | | 17.58 %% | | 17.61 %% | |
| Tangible common equity to tangible assets: ((B-C-D)/(A-C-D)) | 13.36 | | 13.08 | | 12.35 | | 12.09 | | 11.98 | |
| Total assets (A) | | $22,881,879 | | $22,707,802 | | $22,907,022 | | $22,992,203 | | $22,490,748 |
| Total shareholders' equity (B) | | 4,296,871 | | 4,214,964 | | 4,085,316 | | 4,042,555 | | 3,961,025 |
| Goodwill (C) | | 1,398,253 | | 1,398,253 | | 1,398,253 | | 1,398,253 | | 1,398,253 |
| Core deposit and other intangibles (D) | | 32,293 | | 34,231 | | 36,255 | | 38,280 | | 40,327 |
Shareholder Buyback Yield
(Unaudited)
| Quarter Ended | Year Ended |
|---|
| (Dollars and shares in thousands) | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Dec 31, 2025 | Dec 31, 2024 |
| SHAREHOLDER BUYBACK YIELD | | | | | | | |
| Shareholder buyback yield: (A/B) | 0.27 %% | | 0.18 %% | | 0.49 %% | | 0.53 %% | | 0.05 %% | | 1.46 %% | | 1.69 %% | |
| Shares repurchased | | 541 | | 350 | | 1,000 | | 1,000 | | 96 | | 2,891 | | 3,522 |
| Average price per share | | $27.26 | | $28.34 | | $26.99 | | $29.67 | | $26.38 | | $28.13 | | $24.41 |
| Principal cost | | 14,747 | | 9,918 | | 26,989 | | 29,668 | | 2,526 | | 81,322 | | 85,977 |
| Excise tax | | 141 | | 93 | | 459 | | 117 | | (72) | | 810 | | 411 |
| Total share repurchase cost (A) | | $14,888 | | $10,011 | | $27,448 | | $29,785 | | $2,454 | | $82,132 | | $86,388 |
| Shares outstanding beginning of period | | 196,889 | | 197,239 | | 198,206 | | 198,882 | | 198,879 | | 198,882 | | 201,526 |
| Price per share beginning of period | | $28.30 | | $28.46 | | $28.27 | | $28.30 | | $27.09 | | $28.30 | | $25.33 |
| Market capitalization beginning of period (B) | | $5,571,959 | | $5,613,422 | | $5,603,284 | | $5,628,361 | | $5,387,632 | | $5,628,361 | | $5,104,654 |
Contacts
Donna Townsell
Director of Investor Relations
(501) 328-4625