Open the filing on EDGAR| For Immediate Release: | July 15, 2026 |
Record Revenue and Successful Mountain Commerce Bancorp Acquisition
Drive Strong Second Quarter Results for HOMB
Conway, AR - Home BancShares, Inc. (NYSE: HOMB) (“Home” or the “Company”), parent company of Centennial Bank, released quarterly earnings today.
Quarterly Highlights
| Metric | Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 |
| Net income | $119.3 million | $118.2 million | $118.2 million | $123.6 million | $118.4 million |
| Net income, as adjusted (non-GAAP) | $128.1 million | $118.2 million | $117.9 million | $119.7 million | $114.6 million |
| Total revenue (net) | $295.1 million | $266.7 million | $282.1 million | $277.7 million | $271.0 million |
| Income before income taxes | $154.4 million | $152.2 million | $153.3 million | $159.3 million | $152.0 million |
| Pre-tax, pre-provision, net income (PPNR) (non-GAAP) | $159.6 million | $152.7 million | $167.7 million | $162.8 million | $155.0 million |
| PPNR, as adjusted (non-GAAP) | $171.2 million | $152.7 million | $167.1 million | $157.7 million | $150.4 million |
| Pre-tax net income to total revenue (net) | 52.32% | 57.08% | 54.35% | 57.38% | 56.08% |
| Pre-tax net income, as adjusted, to total revenue (net) (non-GAAP) | 56.27% | 57.06% | 54.14% | 55.53% | 54.39% |
| P5NR (Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP) | 54.08% | 57.27% | 59.46% | 58.64% | 57.19% |
| P5NR, as adjusted (non-GAAP) | 58.03% | 57.25% | 59.25% | 56.80% | 55.49% |
| ROA | 1.95% | 2.09% | 2.06% | 2.17% | 2.08% |
| ROA, as adjusted (non-GAAP) | 2.09% | 2.09% | 2.05% | 2.10% | 2.02% |
| NIM | 4.51% | 4.51% | 4.61% | 4.56% | 4.44% |
| Purchase accounting accretion | $3.6 million | $1.1 million | $1.3 million | $1.3 million | $1.2 million |
| ROE | 10.55% | 11.09% | 11.04% | 11.91% | 11.77% |
| ROE, as adjusted (non-GAAP) | 11.32% | 11.08% | 11.01% | 11.54% | 11.39% |
| ROTCE (non-GAAP) | 15.67% | 16.56% | 16.65% | 18.28% | 18.26% |
| ROTCE, as adjusted (non-GAAP) | 16.82% | 16.55% | 16.60% | 17.70% | 17.68% |
| Diluted earnings per share | $0.59 | $0.60 | $0.60 | $0.63 | $0.60 |
| Diluted earnings per share, as adjusted (non-GAAP) | $0.64 | $0.60 | $0.60 | $0.61 | $0.58 |
| Non-performing assets to total assets | 0.93% | 0.97% | 0.55% | 0.56% | 0.60% |
| Common equity tier 1 capital | 16.4% | 16.7% | 16.3% | 16.1% | 15.6% |
| Leverage | 14.0% | 14.3% | 14.1% | 13.8% | 13.4% |
| Tier 1 capital | 16.4% | 16.7% | 16.3% | 16.1% | 15.6% |
| Total risk-based capital | 19.0% | 19.5% | 19.1% | 18.9% | 19.3% |
| Allowance for credit losses to total loans | 1.92% | 1.90% | 1.90% | 1.87% | 1.86% |
| Book value per share | $22.68 | $22.15 | $21.88 | $21.41 | $20.71 |
| Tangible book value per share (non-GAAP) | $15.32 | $14.87 | $14.60 | $14.13 | $13.44 |
| Dividends per share | $0.21 | $0.21 | $0.21 | $0.20 | $0.20 |
| Shareholder buyback yield | 0.77% | 0.25% | 0.27% | 0.18% | 0.49% |
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.
“Home BancShares delivered another quarter of strong profitability and balance sheet expansion in the second quarter. Highlights include a record PPNR, as adjusted, of $171.2 million, a record total net revenue of $295.1 million, smart loan growth, increase to book value and maintaining a stable margin, while returning capital through meaningful share repurchases and adjusted EPS of $0.64,” said John Allison, Chairman.
“Our legacy franchise produced loan growth during the quarter, while Mountain Commerce contributed meaningful deposit growth almost immediately following the acquisition - demonstrating exactly why we pursued the transaction. Even after absorbing approximately $12.7 million of merger-related expenses, we generated record adjusted earnings of $128.1 million, maintained a strong net interest margin of 4.51%, and continued to grow tangible book value per share. We believe these results underscore both the strength of our existing markets and the value of disciplined acquisitions that enhance our franchise,” continued Allison.
Quarterly Financial Performance Trends
Net income totaled $119.3 million for the second quarter of 2026, compared to $118.4 million for the second quarter of 2025. The Company completed its acquisition of Mountain Commerce Bancorp, Inc. (“Mountain Commerce”) during the quarter and recognized $12.7 million in merger-related expenses. Net income, as adjusted (non-GAAP), which excludes merger expenses and certain other items, reached a Company-record $128.1 million, an increase of 8.4% from $118.2 million in the prior quarter.
Pre-tax, pre-provision net revenue (PPNR) (non-GAAP) totaled $159.6 million for the second quarter of 2026, compared to $152.7 million in the first quarter of 2026. The Company completed its acquisition of Mountain Commerce during the quarter and incurred $12.7 million in merger-related expenses. Excluding merger expenses and certain other non-fundamental adjustments, PPNR, as adjusted (Non-GAAP) increased to a Company-record $171.2 million, compared to $152.7 million in the prior quarter, reflecting revenue growth, including the impact of the Mountain Commerce acquisition, and continued operating performance.
Dollar amounts presented below in thousands.
Net interest income after credit loss expense totaled $236.4 million for the second quarter of 2026, compared to $223.4 million in the first quarter of 2026, an increase of 5.8%. The increase was driven by continued growth in earning assets, including the impact of the Mountain Commerce acquisition completed during the quarter, as well as favorable net interest margin performance.
Non-interest income totaled $53.5 million for the second quarter of 2026, compared to $42.8 million in the first quarter of 2026, an increase of 24.9%. The increase was primarily driven by higher other service charges and fees, a favorable fair value adjustment on marketable securities, and growth in other income, with additional contributions from the completed acquisition of Mountain Commerce.
Total revenue (net) reached a Company-record $295.1 million for the second quarter of 2026, increasing 10.6% from $266.7 million in the prior quarter. The increase was driven by strong growth in net interest income, including the contribution from the Mountain Commerce acquisition completed during the quarter. The acquisition further enhances the Company's earnings capacity and positions it well for continued revenue growth and earnings accretion in future periods.
Total expenses increased during the second quarter of 2026, reflecting the completed acquisition of Mountain Commerce. Interest expense increased to $95.2 million from $87.1 million in the prior quarter, primarily due to higher interest on deposits resulting from a $921.3 million increase in interest-bearing deposits. Non-interest expense increased to $135.5 million from $114.0 million in the first quarter of 2026, driven primarily by $12.7 million of merger-related expenses incurred during the quarter.
The efficiency ratio was 44.54% for the second quarter of 2026, compared to 41.59% in the prior quarter, primarily reflecting $12.7 million of merger-related expenses associated with the completed acquisition of Mountain Commerce. Excluding merger-related expenses and certain other non-GAAP adjustments, the efficiency ratio, as adjusted, (non-GAAP) improved to 40.46%, highlighting continued operating discipline while integrating the acquisition.
Return on average assets (ROA) was 1.95% for the second quarter of 2026, compared to 2.09% in the prior quarter. The decline was primarily attributable to $12.7 million of merger-related expenses associated with the completed acquisition of Mountain Commerce. Excluding merger-related expenses and certain other non-GAAP adjustments, ROA, as adjusted, (non-GAAP) remained strong at 2.09%, reflecting the Company's continued earnings strength and operating performance.
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.
Book value per share increased to $22.68 at June 30, 2026, from $22.15 at March 31, 2026, while tangible book value per share (non-GAAP) increased to $15.32 from $14.87. The linked-quarter growth reflects strong earnings generation and the successful completion of the Mountain Commerce acquisition, which contributed to continued growth in shareholder value despite the impact of merger-related expenses incurred during the quarter.
Operating Highlights
Net income for the three-month period ended June 30, 2026 was $119.3 million, or $0.59 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 $128.1 million and $0.64 per share, respectively, for the three months ended June 30, 2026.
Our net interest margin was 4.51% for both of the three-month periods ended June 30, 2026 and March 31, 2026. The yield on loans was 7.00% and 7.08% for the three months ended June 30, 2026 and March 31, 2026, respectively, as average loans increased from $15.68 billion to $17.08 billion. The rate on interest bearing deposits increased to 2.39% as of June 30, 2026, from 2.35% as of March 31, 2026, while average interest-bearing deposits increased from $13.66 billion to $14.69 billion. The increase in average loans and deposits was primarily due to the acquisition of Mountain Commerce Bancorp, Inc. (“MCBI” or“Mountain Commerce”) which was completed during the second quarter of 2026.
During the second quarter of 2026, there was $1.7 million of event interest income compared to no event interest income for the first quarter of 2026. The increase in event income was accretive to the net interest margin by four basis points. Purchase accounting accretion on acquired loans was $3.6 million and $1.1 million for the three-month periods ended June 30, 2026 and March 31, 2026, respectively, and average purchase accounting loan discounts were $42.0 million and $12.5 million for the three-month periods ended June 30, 2026 and March 31, 2026, respectively. The increase in accretion income along with the increase in the purchase accounting loan discounts, both of which resulted from the acquisition of Mountain Commerce, increased the net interest margin by six basis points for the three-month period ended June 30, 2026.
Net interest income on a fully taxable equivalent basis was $244.3 million for the three-month period ended June 30, 2026, compared to $226.6 million for the three-month period ended March 31, 2026. This increase in net interest income for the three-month period ended June 30, 2026, was the result of a $25.8 million increase in interest income, which was partially offset by an $8.1 million increase in interest expense. The $25.8 million increase in interest income was primarily the result of a $24.6 million increase in loan income and a $1.0 million increase in income from investments. The $8.1 million increase in interest expense was due to an $8.3 million increase in interest expense on deposits, which was partially offset by a $346,000 decrease in interest expense on FHLB and other borrowed funds.
The Company reported $53.5 million of non-interest income for the second quarter of 2026. The most important components of non-interest income were $13.1 million from other income, $13.0 million from other service charges and fees, $10.0 million from service charges on deposit accounts, $6.1 million from trust fees, $5.1 million in mortgage lending income, $2.8 million from dividends from FHLB, FRB, FNBB and other, $1.6 million from the increase in cash value of life insurance, $817,000 in income from the fair value adjustment for marketable securities and $578,000 in insurance commissions. Included within other income was $274,000 in bank-owned life insurance death benefit income.
Non-interest expense for the second quarter of 2026 was $135.5 million. The most important components of non-interest expense were $68.7 million of salaries and employee benefits expense, $28.9 million in other operating expense, $15.8 million in occupancy and equipment expenses, $12.7 million in merger and acquisition expenses and $9.3 million in data processing expenses. For the second quarter of 2026, our efficiency ratio was 44.54%, and our efficiency ratio, as adjusted (non-GAAP), was 40.46%.
Financial Condition
Total loans receivable were $17.13 billion at June 30, 2026, compared to $15.63 billion at March 31, 2026. Total deposits were $19.11 billion at June 30, 2026, compared to $17.74 billion at March 31, 2026. Total assets were $24.71 billion at June 30, 2026, compared to $23.20 billion at March 31, 2026.
During the second quarter of 2026, the Company had a $1.49 billion increase in loans. During the quarter, we acquired $1.47 billion in loans, net of purchase accounting discounts, from MCBI. Our community banking footprint experienced $46.4 million in organic loan growth during the quarter ended June 30, 2026, while Centennial CFG experienced $22.6 million of organic loan decline in the second quarter, with $2.04 billion of loans outstanding at June 30, 2026.
Non-performing loans to total loans were 1.08% and 1.16% at June 30, 2026 and March 31, 2026, respectively. Non-performing assets to total assets were 0.93% and 0.97% at June 30, 2026 and March 31, 2026, respectively. Net loans charged-off were $5.8 million and $1.4 million for the three months ended June 30, 2026 and March 31, 2026, respectively. The charge-off detail by region for the quarters ended June 30, 2026 and March 31, 2026 can be seen below.
| For the Three Months Ended June 30, 2026 |
| (in thousands) | Texas | Arkansas | Centennial CFG | Shore Premier Finance | Florida | Tennessee | Alabama | Total |
| Charge-offs | $1,708 | $2,605 | $ - | $1,896 | $286 | $11 | $14 | $6,520 |
| Recoveries | (249) | (324) | - | (5) | (142) | - | (2) | (722) |
| Net charge-offs (recoveries) | $1,459 | $2,281 | $ - | $1,891 | $144 | $11 | $12 | $5,798 |
| For the Three Months Ended March 31, 2026 |
| (in thousands) | Texas | Arkansas | Centennial CFG | Shore Premier Finance | Florida | Alabama | Total |
| Charge-offs | $1,720 | $982 | $ - | $ - | $137 | $10 | $2,849 |
| Recoveries | (788) | (278) | - | (277) | (54) | (3) | (1,400) |
| Net charge-offs (recoveries) | $932 | $704 | $ - | $(277) | $83 | $7 | $1,449 |
At June 30, 2026, non-performing loans were $185.3 million, and non-performing assets were $228.6 million. At March 31, 2026, non-performing loans were $182.1 million, and non-performing assets were $224.1 million.
The table below shows the non-performing loans and non-performing assets by region as of June 30, 2026:
| (in thousands) | Texas | Arkansas | Centennial CFG | Shore Premier Finance | Florida | Tennessee | Alabama | Total |
| Non-accrual loans | $123,170 | $19,529 | $ - | $11,886 | $24,235 | $4,335 | $44 | $183,199 |
| Loans 90+ days past due | 690 | 238 | - | - | 282 | 916 | - | 2,126 |
| Total non-performing loans | 123,860 | 19,767 | - | 11,886 | 24,517 | 5,251 | 44 | 185,325 |
| Foreclosed assets held for sale | 15,647 | 2,028 | 22,812 | - | 260 | 1,392 | - | 42,139 |
| Other non-performing assets | - | - | - | 1,140 | - | - | - | 1,140 |
| Total other non-performing assets | 15,647 | 2,028 | 22,812 | 1,140 | 260 | 1,392 | - | 43,279 |
| Total non-performing assets | $139,507 | $21,795 | $22,812 | $13,026 | $24,777 | $6,643 | $44 | $228,604 |
The table below shows the non-performing loans and non-performing assets by region as of March 31, 2026:
| (in thousands) | Texas | Arkansas | Centennial CFG | Shore Premier Finance | Florida | Alabama | Total |
| Non-accrual loans | $119,333 | $21,833 | $787 | $12,131 | $25,532 | $23 | $179,639 |
| Loans 90+ days past due | 1,077 | 36 | - | - | 1,368 | - | 2,481 |
| Total non-performing loans | 120,410 | 21,869 | 787 | 12,131 | 26,900 | 23 | 182,120 |
| Foreclosed assets held for sale | 16,164 | 1,638 | 22,812 | - | 260 | - | 40,874 |
| Other non-performing assets | - | - | - | 1,140 | - | - | 1,140 |
| Total other non-performing assets | 16,164 | 1,638 | 22,812 | 1,140 | 260 | - | 42,014 |
| Total non-performing assets | $136,574 | $23,507 | $23,599 | $13,271 | $27,160 | $23 | $224,134 |
The Company’s allowance for credit losses on loans was $328.4 million, or 1.92% of total loans, at June 30, 2026 compared to $297.6 million, or 1.90% of total loans, at March 31, 2026. As of June 30, 2026 and March 31, 2026, the Company’s allowance for credit losses on loans was 177.19% and 163.43% of its total non-performing loans, respectively.
Shareholders’ equity was $4.55 billion at June 30, 2026, which increased approximately $197.9 million from March 31, 2026. The net increase in shareholders’ equity is primarily associated with the $146.0 million of common stock issued to the Mountain Commerce shareholders, the $77.1 million increase in retained earnings and the $10.4 million increase in accumulated other comprehensive income, which was partially offset by the $42.3 million in dividends paid during the quarter and the $40.5 million in stock repurchases for the quarter. Book value per common share was $22.68 at June 30, 2026, compared to $22.15 at March 31, 2026. Tangible book value per common share (non-GAAP) was $15.32 at June 30, 2026, compared to $14.87 at March 31, 2026. Book value per common share and tangible book value per common share, as of June 30, 2026, were both records for the Company.
Stock Repurchases and Dividends
During the three-month period ended June 30, 2026, the Company repurchased 1.5 million shares of common stock, which equated to a shareholder buyback yield of 0.77%. In comparison, during the three-month period ended March 31, 2026, the Company repurchased 507,622 shares of common stock, which equated to a shareholder buyback yield of 0.25%. 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 June 30, 2026, the Company paid a dividend of $0.21 per share. This cash dividend was consistent with the dividend paid during the first quarter of 2026.
Branches
The Company currently has 75 branches in Arkansas, 78 branches in Florida, 60 branches in Texas, 8 branches in Tennessee, 5 branches in Alabama and one branch in New York City.
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, July 16, 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/346859709. 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://events.q4inc.com/analyst/346859709?pwd=sU182NPD. 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 1-833-461-5787, Passcode: 346859709. A replay of the call will be available using the following link: https://events.q4inc.com/attendee/346859709. 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, Tennessee, 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 and equity 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,” “will,” “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 risk that the anticipated benefits from the completed acquisition of MCBI 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 ability to retain key employees, customers and business relationships following the acquisition; the reaction to the completed acquisition of the companies’ customers, employees and counterparties; diversion of management time on integration-related issues; the possibility that the costs of integration may be greater than anticipated; 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; the impacts of political instability, ongoing or future military conflicts and other major domestic or international events; the impacts of recent or future adverse weather events, including hurricanes, and other natural disasters; 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; 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; 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, 2025, filed with the SEC on February 27, 2026. Home assumes no obligation to update the information in this press release, except as otherwise required by law.
Consolidated End of Period Balance Sheets
(Unaudited)
| (In thousands) | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 |
| ASSETS | | | | | |
| Cash and due from banks | $279,660 | $296,209 | $237,224 | $284,750 | $291,344 |
| Interest-bearing deposits with other banks | 772,859 | 815,714 | 430,113 | 516,170 | 809,729 |
| Cash and cash equivalents | 1,052,519 | 1,111,923 | 667,337 | 800,920 | 1,101,073 |
| Federal funds sold | 5,450 | 6,025 | 3,000 | 3,625 | 2,600 |
| Investment securities - available-for-sale, net of allowance for credit losses | 2,776,216 | 2,803,847 | 2,871,931 | 2,924,496 | 2,899,968 |
| Investment securities - held-to-maturity, net of allowance for credit losses | 1,254,802 | 1,256,635 | 1,259,262 | 1,264,200 | 1,265,292 |
| Total investment securities | 4,031,018 | 4,060,482 | 4,131,193 | 4,188,696 | 4,165,260 |
| Loans receivable | 17,127,208 | 15,633,628 | 15,686,209 | 15,285,972 | 15,180,624 |
| Allowance for credit losses | (328,369) | (297,634) | (297,583) | (285,649) | (281,869) |
| Loans receivable, net | 16,798,839 | 15,335,994 | 15,388,626 | 15,000,323 | 14,898,755 |
| Bank premises and equipment, net | 437,552 | 374,010 | 369,324 | 374,515 | 379,729 |
| Foreclosed assets held for sale | 42,139 | 40,874 | 39,831 | 41,263 | 41,529 |
| Cash value of life insurance | 233,515 | 221,830 | 220,469 | 219,075 | 218,113 |
| Accrued interest receivable | 108,384 | 106,628 | 108,939 | 110,702 | 107,732 |
| Deferred tax asset, net | 153,803 | 143,987 | 148,022 | 155,963 | 174,323 |
| Goodwill | 1,410,211 | 1,398,253 | 1,398,253 | 1,398,253 | 1,398,253 |
| Core deposit intangible | 65,541 | 30,355 | 32,293 | 34,231 | 36,255 |
| Other assets | 374,277 | 371,318 | 374,592 | 380,236 | 383,400 |
| Total assets | $24,713,248 | $23,201,679 | $22,881,879 | $22,707,802 | $22,907,022 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | |
| Deposits: | | | | | |
| Demand and non-interest-bearing | $4,447,710 | $3,994,217 | $3,868,405 | $3,880,101 | $4,024,574 |
| Savings and interest-bearing transaction accounts | 12,423,361 | 11,971,866 | 11,792,828 | 11,500,921 | 11,571,949 |
| Time deposits | 2,242,034 | 1,772,192 | 1,818,724 | 1,946,674 | 1,891,909 |
| Total deposits | 19,113,105 | 17,738,275 | 17,479,957 | 17,327,696 | 17,488,432 |
| Securities sold under agreements to repurchase | 158,744 | 157,409 | 155,803 | 145,998 | 140,813 |
| FHLB and other borrowed funds | 450,250 | 500,250 | 500,250 | 550,500 | 550,500 |
| Accrued interest payable and other liabilities | 164,112 | 176,727 | 169,733 | 189,551 | 203,004 |
| Subordinated debentures | 279,602 | 279,433 | 279,265 | 279,093 | 438,957 |
| Total liabilities | 20,165,813 | 18,852,094 | 18,585,008 | 18,492,838 | 18,821,706 |
| Shareholders' equity | | | | | |
| Common stock | 2,005 | 1,964 | 1,964 | 1,969 | 1,972 |
| Capital surplus | 2,301,551 | 2,191,243 | 2,201,923 | 2,214,211 | 2,221,576 |
| Retained earnings | 2,412,859 | 2,335,787 | 2,258,871 | 2,181,911 | 2,097,712 |
| Accumulated other comprehensive loss | (168,980) | (179,409) | (165,887) | (183,127) | (235,944) |
| Total shareholders' equity | 4,547,435 | 4,349,585 | 4,296,871 | 4,214,964 | 4,085,316 |
| Total liabilities and shareholders' equity | $24,713,248 | $23,201,679 | $22,881,879 | $22,707,802 | $22,907,022 |
Consolidated Statements of Income
(Unaudited)
| Quarter Ended | Six Months Ended |
|---|
| (In thousands) | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Jun 30, 2026 | Jun 30, 2025 |
| Interest income: | | | | | | | |
| Loans | $298,066 | $273,473 | $285,491 | $283,165 | $276,041 | $571,539 | $546,825 |
| Investment securities | | | | | | | |
| Taxable | 25,787 | 24,728 | 25,860 | 26,326 | 26,444 | 50,515 | 53,877 |
| Tax-exempt | 7,811 | 7,829 | 7,834 | 7,743 | 7,626 | 15,640 | 15,276 |
| Deposits - other banks | 5,135 | 4,945 | 4,405 | 6,242 | 8,951 | 10,080 | 15,571 |
| Federal funds sold | 37 | 48 | 41 | 56 | 53 | 85 | 108 |
| Total interest income | 336,836 | 311,023 | 323,631 | 323,532 | 319,115 | 647,859 | 631,657 |
| Interest expense: | | | | | | | |
| Interest on deposits | 87,432 | 79,145 | 83,739 | 87,962 | 88,489 | 166,577 | 175,275 |
| FHLB and other borrowed funds | 4,346 | 4,692 | 4,985 | 5,378 | 5,539 | 9,038 | 11,441 |
| Securities sold under agreements to repurchase | 1,057 | 927 | 962 | 1,019 | 1,012 | 1,984 | 2,086 |
| Subordinated debentures | 2,358 | 2,355 | 2,359 | 3,007 | 4,123 | 4,713 | 8,247 |
| Total interest expense | 95,193 | 87,119 | 92,045 | 97,366 | 99,163 | 182,312 | 197,049 |
| Net interest income | 241,643 | 223,904 | 231,586 | 226,166 | 219,952 | 465,547 | 434,608 |
| Provision for credit losses on loans | 5,200 | 1,500 | 14,400 | 6,700 | 3,000 | 6,700 | 3,000 |
| Recovery of credit losses on unfunded commitments | - | (1,000) | - | (1,000) | - | (1,000) | - |
| Recovery of credit losses on investment securities | - | - | - | (2,194) | - | - | - |
| Total credit loss expense | 5,200 | 500 | 14,400 | 3,506 | 3,000 | 5,700 | 3,000 |
| Net interest income after credit loss expense | 236,443 | 223,404 | 217,186 | 222,660 | 216,952 | 459,847 | 431,608 |
| Non-interest income: | | | | | | | |
| Service charges on deposit accounts | 10,030 | 10,007 | 10,480 | 10,486 | 9,552 | 20,037 | 19,202 |
| Other service charges and fees | 12,973 | 9,810 | 11,148 | 12,130 | 12,643 | 22,783 | 23,332 |
| Trust fees | 6,109 | 5,482 | 5,121 | 4,600 | 5,234 | 11,591 | 9,994 |
| Mortgage lending income | 5,139 | 4,430 | 4,680 | 4,691 | 4,780 | 9,569 | 8,379 |
| Insurance commissions | 578 | 536 | 460 | 574 | 589 | 1,114 | 1,124 |
| Increase in cash value of life insurance | 1,553 | 1,368 | 1,400 | 1,404 | 1,415 | 2,921 | 3,257 |
| Dividends from FHLB, FRB, FNBB & other | 2,841 | 2,536 | 2,678 | 2,658 | 2,657 | 5,377 | 5,375 |
| Gain on SBA loans | - | 80 | 308 | 46 | - | 80 | 288 |
| Gain (loss) on branches, equipment and other assets, net | 3 | (7) | 11 | (66) | 972 | (4) | 809 |
| Gain (loss) on OREO, net | 332 | 707 | 203 | (1) | 13 | 1,039 | (363) |
| Fair value adjustment for marketable securities | 817 | (1,248) | 1,173 | 1,020 | (238) | (431) | 204 |
| Other income | 13,079 | 9,102 | 12,838 | 13,963 | 13,462 | 22,181 | 24,904 |
| Total non-interest income | 53,454 | 42,803 | 50,500 | 51,505 | 51,079 | 96,257 | 96,505 |
| Non-interest expense: | | | | | | | |
| Salaries and employee benefits | 68,742 | 63,236 | 62,891 | 63,804 | 64,318 | 131,978 | 126,173 |
| Occupancy and equipment | 15,787 | 14,867 | 14,434 | 14,828 | 14,023 | 30,654 | 28,448 |
| Data processing expense | 9,307 | 8,884 | 8,653 | 8,871 | 8,364 | 18,191 | 16,922 |
| Merger and acquisition expenses | 12,726 | 394 | 580 | - | - | 13,120 | - |
| Other operating expenses | 28,932 | 26,594 | 27,805 | 27,335 | 29,335 | 55,526 | 57,425 |
| Total non-interest expense | 135,494 | 113,975 | 114,363 | 114,838 | 116,040 | 249,469 | 228,968 |
| Income before income taxes | 154,403 | 152,232 | 153,323 | 159,327 | 151,991 | 306,635 | 299,145 |
| Income tax expense | 35,076 | 34,023 | 35,098 | 35,723 | 33,588 | 69,099 | 65,533 |
| Net income | $119,327 | $118,209 | $118,225 | $123,604 | $118,403 | $237,536 | $233,612 |
Selected Financial Information
(Unaudited)
| Quarter Ended | Six Months Ended |
|---|
| (Dollars and shares in thousands, except per share data) | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Jun 30, 2026 | Jun 30, 2025 |
| PER SHARE DATA | | | | | | | |
| Diluted earnings per common share | | $0.59 | | $0.60 | | $0.60 | | $0.63 | | $0.60 | | $1.19 | | $1.18 |
| Diluted earnings per common share, as adjusted (non-GAAP) | | 0.64 | | 0.60 | | 0.60 | | 0.61 | | 0.58 | | 1.24 | | 1.14 |
| Basic earnings per common share | | 0.59 | | 0.60 | | 0.60 | | 0.63 | | 0.60 | | 1.19 | | 1.18 |
| Dividends per share - common | | 0.21 | | 0.21 | | 0.210 | | 0.200 | | 0.200 | | 0.210 | | 0.395 |
| Shareholder buyback yield | | 0.77% | | 0.25% | | 0.27% | | 0.18% | | 0.49% | | 1.00% | | 1.02% |
| Book value per common share | | $22.68 | | $22.15 | | $21.88 | | $21.41 | | $20.71 | | $22.68 | | $20.71 |
| Tangible book value per common share (non-GAAP) | | 15.32 | | 14.87 | | 14.60 | | 14.13 | | 13.44 | | 15.32 | | 13.44 |
| STOCK INFORMATION | | | | | | | |
| Average common shares outstanding | | 201,223 | | 196,528 | | 196,553 | | 197,078 | | 197,532 | | 198,889 | | 198,091 |
| Average diluted shares outstanding | | 201,420 | | 196,733 | | 196,764 | | 197,288 | | 197,765 | | 199,088 | | 198,289 |
| End of period common shares outstanding | | 200,460 | | 196,394 | | 196,357 | | 196,889 | | 197,239 | | 200,460 | | 197,239 |
| ANNUALIZED PERFORMANCE METRICS | | | | | | | |
| Return on average assets (ROA) | 1.95% | | 2.09% | | 2.06% | | 2.17% | | 2.08% | | 2.02% | | 2.08% | |
| Return on average assets, as adjusted: (ROA, as adjusted) (non-GAAP) | 2.09 | | 2.09 | | 2.05 | | 2.10 | | 2.02 | | 2.09 | | 2.02 | |
| Return on average assets excluding intangible amortization (non-GAAP) | 2.12 | | 2.25 | | 2.22 | | 2.34 | | 2.25 | | 2.18 | | 2.25 | |
| Return on average assets, as adjusted, excluding intangible amortization (non-GAAP) | 2.27 | | 2.25 | | 2.22 | | 2.27 | | 2.18 | | 2.26 | | 2.18 | |
| Return on average common equity (ROE) | 10.55 | | 11.09 | | 11.04 | | 11.91 | | 11.77 | | 10.78 | | 11.76 | |
| Return on average common equity, as adjusted: (ROE, as adjusted) (non-GAAP) | 11.32 | | 11.08 | | 11.01 | | 11.54 | | 11.39 | | 11.18 | | 11.40 | |
| Return on average tangible common equity (ROTCE) (non-GAAP) | 15.67 | | 16.56 | | 16.65 | | 18.28 | | 18.26 | | 16.03 | | 18.33 | |
| Return on average tangible common equity, as adjusted: (ROTCE, as adjusted) (non-GAAP) | 16.82 | | 16.55 | | 16.60 | | 17.70 | | 17.68 | | 16.62 | | 17.77 | |
| Return on average tangible common equity excluding intangible amortization (non-GAAP) | 15.96 | | 16.76 | | 16.85 | | 18.51 | | 18.50 | | 16.28 | | 18.57 | |
| Return on average tangible common equity, as adjusted, excluding intangible amortization (non-GAAP) | 17.11 | | 16.76 | | 16.80 | | 17.93 | | 17.92 | | 16.87 | | 18.02 | |
(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 | Six Months Ended |
|---|
| (Dollars in thousands) | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Jun 30, 2026 | Jun 30, 2025 |
| Efficiency ratio | 44.54% | | 41.59% | | 39.54% | | 40.21% | | 41.68% | | 43.14% | | 41.94% | |
| Efficiency ratio, as adjusted (non-GAAP) | 40.46 | | 41.99 | | 39.53 | | 40.95 | | 42.01 | | 41.19 | | 42.42 | |
| Net interest margin - FTE (NIM) | 4.51 | | 4.51 | | 4.61 | | 4.56 | | 4.44 | | 4.51 | | 4.44 | |
| Fully taxable equivalent adjustment | | $2,653 | | $2,661 | | $2,252 | | $2,916 | | $2,526 | | $5,314 | | $5,060 |
| Total revenue (net) | | 295,097 | | 266,707 | | 282,086 | | 277,671 | | 271,031 | | 561,804 | | 531,113 |
| Pre-tax, pre-provision, net income (PPNR) (non-GAAP) | | 159,603 | | 152,732 | | 167,723 | | 162,833 | | 154,991 | | 312,335 | | 302,145 |
| PPNR, as adjusted (non-GAAP) | | 171,238 | | 152,677 | | 167,130 | | 157,704 | | 150,404 | | 323,915 | | 293,225 |
| Pre-tax net income to total revenue (net) | 52.32% | | 57.08% | | 54.35% | | 57.38% | | 56.08% | | 54.58% | | 56.32% | |
| Pre-tax net income, as adjusted, to total revenue (net) (non-GAAP) | 56.27 | | 57.06 | | 54.14 | | 55.53 | | 54.39 | | 56.64 | | 54.64 | |
| P5NR ((Pre-tax, pre-provision, profit percentage) (PPNR to total revenue (net)) (non-GAAP) | 54.08 | | 57.27 | | 59.46 | | 58.64 | | 57.19 | | 55.60 | | 56.89 | |
| P5NR, as adjusted (non-GAAP) | 58.03 | | 57.25 | | 59.25 | | 56.80 | | 55.49 | | 57.66 | | 55.21 | |
| Total purchase accounting accretion | | $3,618 | | $1,061 | | $1,265 | | $1,272 | | $1,233 | | $4,679 | | $2,611 |
| Average purchase accounting loan discounts | | 41,962 | | 12,507 | | 13,753 | | 15,009 | | 16,219 | | 27,311 | | 16,873 |
| OTHER OPERATING EXPENSES | | | | | | | |
| Advertising | | $2,214 | | $2,227 | | $2,114 | | $2,149 | | $2,054 | | $4,441 | | $3,982 |
| Amortization of intangibles | | 2,889 | | 1,938 | | 1,938 | | 2,024 | | 2,025 | | 4,827 | | 4,072 |
| Electronic banking expense | | 3,223 | | 3,326 | | 3,288 | | 3,357 | | 3,172 | | 6,549 | | 6,227 |
| Directors' fees | | 416 | | 518 | | 388 | | 405 | | 431 | | 934 | | 883 |
| Due from bank service charges | | 344 | | 333 | | 324 | | 404 | | 283 | | 677 | | 564 |
| FDIC and state assessment | | 3,045 | | 1,599 | | 2,970 | | 3,245 | | 1,636 | | 4,644 | | 5,023 |
| Insurance | | 1,090 | | 1,074 | | 1,044 | | 1,110 | | 1,049 | | 2,164 | | 2,048 |
| Legal and accounting | | 1,426 | | 914 | | 1,362 | | 1,061 | | 2,360 | | 2,340 | | 6,001 |
| Other professional fees | | 2,247 | | 1,946 | | 2,168 | | 2,083 | | 2,211 | | 4,193 | | 4,158 |
| Operating supplies | | 769 | | 748 | | 759 | | 773 | | 711 | | 1,517 | | 1,422 |
| Postage | | 684 | | 543 | | 564 | | 538 | | 488 | | 1,227 | | 991 |
| Telephone | | 324 | | 363 | | 382 | | 367 | | 419 | | 687 | | 855 |
| Other expense | | 10,261 | | 11,065 | | 10,504 | | 9,819 | | 12,496 | | 21,326 | | 21,199 |
| Total other operating expenses | | $28,932 | | $26,594 | | $27,805 | | $27,335 | | $29,335 | | $55,526 | | $57,425 |
(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) | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 |
| BALANCE SHEET RATIOS | | | | | |
| Total loans to total deposits | 89.61% | | 88.13% | | 89.74% | | 88.22% | | 86.80% | |
| Common equity to assets | 18.40 | | 18.75 | | 18.78 | | 18.56 | | 17.83 | |
| Tangible common equity to tangible assets (non-GAAP) | 13.22 | | 13.42 | | 13.36 | | 13.08 | | 12.35 | |
| LOANS RECEIVABLE | | | | | |
| Real estate | | | | | |
| Commercial real estate loans | | | | | |
| Non-farm/non-residential | | $5,921,829 | | $5,395,529 | | $5,290,112 | | $5,494,492 | | $5,553,182 |
| Construction/land development | | 2,780,116 | | 2,613,604 | | 2,726,993 | | 2,709,197 | | 2,695,561 |
| Agricultural | | 329,231 | | 321,046 | | 332,412 | | 331,301 | | 315,926 |
| Residential real estate loans | | | | | |
| Residential 1-4 family | | 2,545,462 | | 2,100,374 | | 2,134,334 | | 2,142,375 | | 2,138,990 |
| Multifamily residential | | 1,269,728 | | 1,232,639 | | 1,140,911 | | 716,595 | | 620,439 |
| Total real estate | | 12,846,366 | | 11,663,192 | | 11,624,762 | | 11,393,960 | | 11,324,098 |
| Consumer | | 1,278,008 | | 1,254,936 | | 1,253,746 | | 1,233,523 | | 1,218,834 |
| Commercial and industrial | | 2,285,054 | | 2,172,267 | | 2,222,401 | | 2,100,268 | | 2,107,326 |
| Agricultural | | 356,611 | | 329,563 | | 359,879 | | 346,167 | | 323,457 |
| Other | | 361,169 | | 213,670 | | 225,421 | | 212,054 | | 206,909 |
| Loans receivable | | $17,127,208 | | $15,633,628 | | $15,686,209 | | $15,285,972 | | $15,180,624 |
| ALLOWANCE FOR CREDIT LOSSES | | | | | |
| Balance, beginning of period | | $297,634 | | $297,583 | | $285,649 | | $281,869 | | $279,944 |
| Allowance for credit losses on acquired loans - MCBI | | 31,333 | | - | | - | | - | | - |
| Loans charged off | | 6,520 | | 2,849 | | 3,063 | | 4,651 | | 4,071 |
| Recoveries of loans previously charged off | | 722 | | 1,400 | | 597 | | 1,731 | | 2,996 |
| Net loans charged off (recovered) | | 5,798 | | 1,449 | | 2,466 | | 2,920 | | 1,075 |
| Provision for credit losses - loans | | 5,200 | | 1,500 | | 14,400 | | 6,700 | | 3,000 |
| Balance, end of period | | $328,369 | | $297,634 | | $297,583 | | $285,649 | | $281,869 |
| Net charge-offs (recoveries) to average total loans | 0.14% | | 0.04% | | 0.06% | | 0.08% | | 0.03% | |
| Allowance for credit losses to total loans | 1.92 | | 1.90 | | 1.90 | | 1.87 | | 1.86 | |
| NON-PERFORMING ASSETS | | | | | |
| Non-performing loans | | | | | |
| Non-accrual loans | | $183,199 | | $179,639 | | $78,002 | | $81,087 | | $89,261 |
| Loans past due 90 days or more | | 2,126 | | 2,481 | | 6,980 | | 4,125 | | 7,031 |
| Total non-performing loans | | 185,325 | | 182,120 | | 84,982 | | 85,212 | | 96,292 |
| Other non-performing assets | | | | | |
| Foreclosed assets held for sale, net | | 42,139 | | 40,874 | | 39,831 | | 41,263 | | 41,529 |
| Other non-performing assets | | 1,140 | | 1,140 | | - | | - | | - |
| Total other non-performing assets | | 43,279 | | 42,014 | | 39,831 | | 41,263 | | 41,529 |
| Total non-performing assets | | $228,604 | | $224,134 | | $124,813 | | $126,475 | | $137,821 |
| Allowance for credit losses for loans to non-performing loans | 177.19% | | 163.43% | | 350.17% | | 335.22% | | 292.72% | |
| Non-performing loans to total loans | 1.08 | | 1.16 | | 0.54 | | 0.56 | | 0.63 | |
| Non-performing assets to total assets | 0.93 | | 0.97 | | 0.55 | | 0.56 | | 0.60 | |
(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 |
|---|
| June 30, 2026 | March 31, 2026 |
|---|
| (Dollars in thousands) | Average Balance | Income/ Expense | Yield/ Rate | Average Balance | Income/ Expense | Yield/ Rate |
| ASSETS | | | | | | |
| Earning assets | | | | | | |
| Interest-bearing balances due from banks | $555,186 | $5,135 | 3.71% | $557,451 | $4,945 | 3.60% |
| Federal funds sold | 4,042 | 37 | 3.67 | 5,282 | 48 | 3.69 |
| Investment securities - taxable | 2,936,008 | 25,787 | 3.52 | 2,935,901 | 24,728 | 3.42 |
| Investment securities - non-taxable - FTE | 1,165,876 | 10,260 | 3.53 | 1,175,663 | 10,285 | 3.55 |
| Loans receivable - FTE | 17,083,743 | 298,270 | 7.00 | 15,680,598 | 273,678 | 7.08 |
| Total interest-earning assets | 21,744,855 | 339,489 | 6.26 | 20,354,895 | 313,684 | 6.25 |
| Non-earning assets | 2,780,403 | | | 2,599,546 | | |
| Total assets | $24,525,258 | | | $22,954,441 | | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | |
| Liabilities | | | | | | |
| Interest-bearing liabilities | | | | | | |
| Savings and interest-bearing transaction accounts | $12,392,404 | $68,650 | 2.22% | $11,868,976 | $64,408 | 2.20% |
| Time deposits | 2,301,685 | 18,782 | 3.27 | 1,795,501 | 14,737 | 3.33 |
| Total interest-bearing deposits | 14,694,089 | 87,432 | 2.39 | 13,664,477 | 79,145 | 2.35 |
| Federal funds purchased | 30 | - | - | - | - | - |
| Securities sold under agreement to repurchase | 167,885 | 1,057 | 2.53 | 151,877 | 927 | 2.48 |
| FHLB and other borrowed funds | 466,734 | 4,346 | 3.73 | 500,250 | 4,692 | 3.80 |
| Subordinated debentures | 279,519 | 2,358 | 3.38 | 279,350 | 2,355 | 3.42 |
| Total interest-bearing liabilities | 15,608,257 | 95,193 | 2.45 | 14,595,954 | 87,119 | 2.42 |
| Non-interest bearing liabilities | | | | | | |
| Non-interest bearing deposits | 4,222,813 | | | 3,856,492 | | |
| Other liabilities | 158,476 | | | 177,275 | | |
| Total liabilities | 19,989,546 | | | 18,629,721 | | |
| Shareholders' equity | 4,535,712 | | | 4,324,720 | | |
| Total liabilities and shareholders' equity | $24,525,258 | | | $22,954,441 | | |
| Net interest spread | | | 3.81% | | | 3.83% |
| Net interest income and margin - FTE | | $244,296 | 4.51 | | $226,565 | 4.51 |
Consolidated Net Interest Margin
(Unaudited)
| Six Months Ended |
|---|
| June 30, 2026 | June 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 | $556,312 | $10,080 | 3.65% | $713,455 | $15,571 | 4.40% |
| Federal funds sold | 4,658 | 85 | 3.68 | 4,984 | 108 | 4.37 |
| Investment securities - taxable | 2,935,955 | 50,515 | 3.47 | 3,137,296 | 53,877 | 3.46 |
| Investment securities - non-taxable - FTE | 1,170,742 | 20,545 | 3.54 | 1,124,351 | 20,094 | 3.60 |
| Loans receivable - FTE | 16,386,047 | 571,948 | 7.04 | 14,975,109 | 547,067 | 7.37 |
| Total interest-earning assets | 21,053,714 | 653,173 | 6.26 | 19,955,195 | 636,717 | 6.43 |
| Non-earning assets | 2,702,912 | | | 2,718,779 | | |
| Total assets | $23,756,626 | | | $22,673,974 | | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | |
| Liabilities | | | | | | |
| Interest-bearing liabilities | | | | | | |
| Savings and interest-bearing transaction accounts | $12,132,136 | $133,059 | 2.21% | $11,472,548 | $140,713 | 2.47% |
| Time deposits | 2,049,991 | 33,518 | 3.30 | 1,844,059 | 34,562 | 3.78 |
| Total interest-bearing deposits | 14,182,127 | 166,577 | 2.37 | 13,316,607 | 175,275 | 2.65 |
| Federal funds purchased | 15 | - | - | 23 | - | - |
| Securities sold under agreement to repurchase | 159,925 | 1,984 | 2.50 | 149,773 | 2,086 | 2.81 |
| FHLB and other borrowed funds | 483,399 | 9,038 | 3.77 | 583,739 | 11,441 | 3.95 |
| Subordinated debentures | 279,435 | 4,713 | 3.40 | 439,100 | 8,247 | 3.79 |
| Total interest-bearing liabilities | 15,104,901 | 182,312 | 2.43 | 14,489,242 | 197,049 | 2.74 |
| Non-interest bearing liabilities | | | | | | |
| Non-interest bearing deposits | 4,040,665 | | | 3,981,425 | | |
| Other liabilities | 167,823 | | | 196,232 | | |
| Total liabilities | 19,313,389 | | | 18,666,899 | | |
| Shareholders' equity | 4,443,237 | | | 4,007,075 | | |
| Total liabilities and shareholders' equity | $23,756,626 | | | $22,673,974 | | |
| Net interest spread | | | 3.83% | | | 3.69% |
| Net interest income and margin - FTE | | $470,861 | 4.51 | | $439,668 | 4.44 |
Non-GAAP Reconciliations
(Unaudited)
| Quarter Ended | Six Months Ended |
|---|
| (Dollars and shares in thousands, except per share data) | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Jun 30, 2026 | Jun 30, 2025 |
| NET INCOME (EARNINGS), AS ADJUSTED | | | | | | | |
| GAAP net income available to common shareholders (A) | | $119,327 | | $118,209 | | $118,225 | | $123,604 | | $118,403 | | $237,536 | | $233,612 |
| Pre-tax adjustments | | | | | | | |
| Merger and acquisition expense | | 12,726 | | 394 | | 580 | | - | | - | | 13,120 | | - |
| Gain on retirement of subordinated debt | | - | | - | | - | | (1,882) | | - | | - | | - |
| FDIC special assessment credit | | - | | (1,697) | | - | | - | | (1,516) | | (1,697) | | (1,516) |
| BOLI death benefits | | (274) | | - | | - | | (187) | | (1,243) | | (274) | | (1,243) |
| Gain on sale of premises and equipment | | - | | - | | - | | - | | (983) | | - | | (983) |
| Fair value adjustment for marketable securities | | (817) | | 1,248 | | (1,173) | | (1,020) | | 238 | | 431 | | (204) |
| Special income from equity investment | | - | | - | | - | | - | | (3,498) | | - | | (7,389) |
| Legal fee reimbursement | | - | | - | | - | | - | | (885) | | - | | (885) |
| Legal claims expense | | - | | - | | - | | - | | 3,300 | | - | | 3,300 |
| Recoveries on historic losses | | - | | - | | - | | (2,040) | | - | | - | | - |
| Total pre-tax adjustments | | 11,635 | | (55) | | (593) | | (5,129) | | (4,587) | | 11,580 | | (8,920) |
| Tax-effect of adjustments | | 2,901 | | (13) | | (231) | | (1,207) | | (817) | | 2,888 | | (1,876) |
| Total adjustments after-tax (B) | | 8,734 | | (42) | | (362) | | (3,922) | | (3,770) | | 8,692 | | (7,044) |
| Net income, as adjusted (C) | | $128,061 | | $118,167 | | $117,863 | | $119,682 | | $114,633 | | $246,228 | | $226,568 |
| Average diluted shares outstanding (D) | | 201,420 | | 196,733 | | 196,764 | | 197,288 | | 197,765 | | 199,088 | | 198,289 |
| GAAP diluted earnings per share: (A/D) | | $0.59 | | $0.60 | | $0.60 | | $0.63 | | $0.60 | | $1.19 | | $1.18 |
| Adjustments after-tax: (B/D) | | 0.05 | | - | | - | | (0.02) | | (0.02) | | 0.05 | | (0.04) |
| Diluted earnings per common share, as adjusted: (C/D) | | $0.64 | | $0.60 | | $0.60 | | $0.61 | | $0.58 | | $1.24 | | $1.14 |
| ANNUALIZED RETURN ON AVERAGE ASSETS | | | | | | | |
| Return on average assets: (A/E) | 1.95% | | 2.09% | | 2.06% | | 2.17% | | 2.08% | | 2.02% | | 2.08% | |
| Return on average assets, as adjusted: (ROA, as adjusted) ((A+D)/E) | 2.09 | | 2.09 | | 2.05 | | 2.10 | | 2.02 | | 2.09 | | 2.02 | |
| Return on average assets excluding intangible amortization: ((A+C)/(E-F)) | 2.12 | | 2.25 | | 2.22 | | 2.34 | | 2.25 | | 2.18 | | 2.25 | |
| Return on average assets, as adjusted, excluding intangible amortization: ((A+C+D)/(E-F)) | 2.27 | | 2.25 | | 2.22 | | 2.27 | | 2.18 | | 2.26 | | 2.18 | |
| GAAP net income available to common shareholders (A) | | $119,327 | | $118,209 | | $118,225 | | $123,604 | | $118,403 | | $237,536 | | $233,612 |
| Amortization of intangibles (B) | | 2,889 | | 1,938 | | 1,938 | | 2,024 | | 2,025 | | 4,827 | | 4,072 |
| Amortization of intangibles after-tax (C) | | 2,185 | | 1,466 | | 1,466 | | 1,529 | | 1,530 | | 3,651 | | 3,077 |
| Adjustments after-tax (D) | | 8,734 | | (42) | | (362) | | (3,922) | | (3,770) | | 8,692 | | (7,044) |
| Average assets (E) | | 24,525,258 | | 22,954,441 | | 22,786,852 | | 22,638,938 | | 22,797,738 | | 23,756,626 | | 22,673,974 |
| Average goodwill & core deposit intangible (F) | | 1,481,989 | | 1,429,527 | | 1,431,479 | | 1,433,474 | | 1,435,480 | | 1,455,903 | | 1,436,492 |
Non-GAAP Reconciliations
(Unaudited)
| Quarter Ended | Six Months Ended |
|---|
| (Dollars in thousands) | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Jun 30, 2026 | Jun 30, 2025 |
| ANNUALIZED RETURN ON AVERAGE COMMON EQUITY | | | | | | | |
| Return on average common equity: (A/D) | 10.55% | | 11.09% | | 11.04% | | 11.91% | | 11.77% | | 10.78% | | 11.76% | |
| Return on average common equity, as adjusted: (ROE, as adjusted) ((A+C)/D) | 11.32 | | 11.08 | | 11.01 | | 11.54 | | 11.39 | | 11.18 | | 11.40 | |
| Return on average tangible common equity: (ROTCE) (A/(D-E)) | 15.67 | | 16.56 | | 16.65 | | 18.28 | | 18.26 | | 16.03 | | 18.33 | |
| Return on average tangible common equity, as adjusted: (ROTCE, as adjusted) ((A+C)/(D-E)) | 16.82 | | 16.55 | | 16.60 | | 17.70 | | 17.68 | | 16.62 | | 17.77 | |
| Return on average tangible common equity excluding intangible amortization: (B/(D-E)) | 15.96 | | 16.76 | | 16.85 | | 18.51 | | 18.50 | | 16.28 | | 18.57 | |
| Return on average tangible common equity, as adjusted, excluding intangible amortization: ((B+C)/(D-E)) | 17.11 | | 16.76 | | 16.80 | | 17.93 | | 17.92 | | 16.87 | | 18.02 | |
| GAAP net income available to common shareholders (A) | | $119,327 | | $118,209 | | $118,225 | | $123,604 | | $118,403 | | $237,536 | | $233,612 |
| Earnings excluding intangible amortization (B) | | 121,512 | | 119,675 | | 119,691 | | 125,133 | | 119,933 | | 241,187 | | 236,689 |
| Adjustments after-tax (C) | | 8,734 | | (42) | | (362) | | (3,922) | | (3,770) | | 8,692 | | (7,044) |
| Average common equity (D) | | 4,535,712 | | 4,324,720 | | 4,248,856 | | 4,115,884 | | 4,036,155 | | 4,443,237 | | 4,007,075 |
| Average goodwill & core deposits intangible (E) | | 1,481,989 | | 1,429,527 | | 1,431,479 | | 1,433,474 | | 1,435,480 | | 1,455,903 | | 1,436,492 |
| EFFICIENCY RATIO & P5NR | | | | | | | |
| Efficiency ratio: ((D-G)/(B+C+E)) | 44.54% | | 41.59% | | 39.54% | | 40.21% | | 41.68% | | 43.14% | | 41.94% | |
| Efficiency ratio, as adjusted: ((D-G-I)/(B+C+E-H)) | 40.46 | | 41.99 | | 39.53 | | 40.95 | | 42.01 | | 41.19 | | 42.42 | |
| Pre-tax net income to total revenue (net) (A/(B+C)) | 52.32 | | 57.08 | | 54.35 | | 57.38 | | 56.08 | | 54.58 | | 56.32 | |
| Pre-tax net income, as adjusted, to total revenue (net) ((A+F)/(B+C)) | 56.27 | | 57.06 | | 54.14 | | 55.53 | | 54.39 | | 56.64 | | 54.64 | |
| Pre-tax, pre-provision, net income (PPNR) (B+C-D) | | $159,603 | | $152,732 | | $167,723 | | $162,833 | | $154,991 | | $312,335 | | $302,145 |
| Pre-tax, pre-provision, net income, as adjusted (B+C-D+F) | | 171,238 | | 152,677 | | 167,130 | | 157,704 | | 150,404 | | 323,915 | | 293,225 |
| P5NR ((Pre-tax, pre-provision, profit percentage) PPNR to total revenue (net)) (B+C-D)/(B+C) | 54.08% | | 57.27% | | 59.46% | | 58.64% | | 57.19% | | 55.60% | | 56.89% | |
| P5NR, as adjusted (B+C-D+F)/(B+C) | 58.03 | | 57.25 | | 59.25 | | 56.80 | | 55.49 | | 57.66 | | 55.21 | |
| Pre-tax net income (A) | | $154,403 | | $152,232 | | $153,323 | | $159,327 | | $151,991 | | $306,635 | | $299,145 |
| Net interest income (B) | | 241,643 | | 223,904 | | 231,586 | | 226,166 | | 219,952 | | 465,547 | | 434,608 |
| Non-interest income (C) | | 53,454 | | 42,803 | | 50,500 | | 51,505 | | 51,079 | | 96,257 | | 96,505 |
| Non-interest expense (D) | | 135,494 | | 113,975 | | 114,363 | | 114,838 | | 116,040 | | 249,469 | | 228,968 |
| Fully taxable equivalent adjustment (E) | | 2,653 | | 2,661 | | 2,252 | | 2,916 | | 2,526 | | 5,314 | | 5,060 |
| Total pre-tax adjustments (F) | | 11,635 | | (55) | | (593) | | (5,129) | | (4,587) | | 11,580 | | (8,920) |
| Amortization of intangibles (G) | | 2,889 | | 1,938 | | 1,938 | | 2,024 | | 2,025 | | 4,827 | | 4,072 |
| Adjustments: | | | | | | | |
| Non-interest income: | | | | | | | |
| Gain on retirement of subordinated debt | $ - | $ - | $ - | | $1,882 | $ - | $ - | $ - |
| Fair value adjustment for marketable securities | | 817 | | (1,248) | | 1,173 | | 1,020 | | (238) | | (431) | | 204 |
| Gain (loss) on OREO | | 332 | | 707 | | 203 | | (1) | | 13 | | 1,039 | | (363) |
| Gain (loss) on branches, equipment and other assets, net | | 3 | | (7) | | 11 | | (66) | | 972 | | (4) | | 809 |
| Special income from equity investment | | - | | - | | - | | - | | 3,498 | | - | | 7,389 |
| Legal expense reimbursement | | - | | - | | - | | - | | 885 | | - | | 885 |
| BOLI death benefits | | 274 | | - | | - | | 187 | | 1,243 | | 274 | | 1,243 |
| Recoveries on historic losses | | - | | - | | - | | 2,040 | | - | | - | | - |
| Total non-interest income adjustments (H) | | $1,426 | | $(548) | | $1,387 | | $5,062 | | $6,373 | | $878 | | $10,167 |
| Non-interest expense: | | | | | | | |
| FDIC special assessment credit | | - | | (1,697) | | - | | - | | (1,516) | | (1,697) | | (1,516) |
| Merger and acquisition expenses | | 12,726 | | 394 | | 580 | | - | | - | | 13,120 | | - |
| Legal claims expense | | - | | - | | - | | - | | 3,300 | | - | | 3,300 |
| Total non-interest expense adjustments (I) | | $12,726 | | $(1,303) | | $580 | $ - | | $1,784 | | $11,423 | | $1,784 |
Non-GAAP Reconciliations
(Unaudited)
| Quarter Ended |
|---|
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 |
|---|
| TANGIBLE BOOK VALUE PER COMMON SHARE | | | | | |
| Book value per common share: (A/B) | | $22.68 | | $22.15 | | $21.88 | | $21.41 | | $20.71 |
| Tangible book value per common share: ((A-C-D)/B) | | 15.32 | | 14.87 | | 14.60 | | 14.13 | | 13.44 |
| Total shareholders' equity (A) | | $4,547,435 | | $4,349,585 | | $4,296,871 | | $4,214,964 | | $4,085,316 |
| End of period common shares outstanding (B) | | 200,460 | | 196,394 | | 196,357 | | 196,889 | | 197,239 |
| Goodwill (C) | | 1,410,211 | | 1,398,253 | | 1,398,253 | | 1,398,253 | | 1,398,253 |
| Core deposit and other intangibles (D) | | 65,541 | | 30,355 | | 32,293 | | 34,231 | | 36,255 |
| TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS | | | | | |
| Equity to assets: (B/A) | 18.40% | | 18.75% | | 18.78% | | 18.56% | | 17.83% | |
| Tangible common equity to tangible assets: ((B-C-D)/(A-C-D)) | 13.22 | | 13.42 | | 13.36 | | 13.08 | | 12.35 | |
| Total assets (A) | | $24,713,248 | | $23,201,679 | | $22,881,879 | | $22,707,802 | | $22,907,022 |
| Total shareholders' equity (B) | | 4,547,435 | | 4,349,585 | | 4,296,871 | | 4,214,964 | | 4,085,316 |
| Goodwill (C) | | 1,410,211 | | 1,398,253 | | 1,398,253 | | 1,398,253 | | 1,398,253 |
| Core deposit and other intangibles (D) | | 65,541 | | 30,355 | | 32,293 | | 34,231 | | 36,255 |
Shareholder Buyback Yield
(Unaudited)
| Quarter Ended | Six Months Ended |
|---|
| (Dollars and shares in thousands) | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Jun 30, 2026 | Jun 30, 2025 |
| SHAREHOLDER BUYBACK YIELD | | | | | | | |
| Shareholder buyback yield: (A/B) | 0.77% | | 0.25% | | 0.27% | | 0.18% | | 0.49% | | 1.00% | | 1.02% | |
| Shares repurchased | | 1,500 | | 508 | | 541 | | 350 | | 1,000 | | 2,008 | | 2,000 |
| Average price per share | | $26.94 | | $27.32 | | $27.26 | | $28.34 | | $26.99 | | $27.04 | | $28.33 |
| Principal cost | | 40,415 | | 13,877 | | 14,747 | | 9,918 | | 26,989 | | 54,292 | | 56,657 |
| Excise tax | | 386 | | 1 | | 141 | | 93 | | 459 | | 387 | | 576 |
| Total share repurchase cost (A) | | $40,801 | | $13,878 | | $14,888 | | $10,011 | | $27,448 | | $54,679 | | $57,233 |
| Shares outstanding beginning of period | | 196,394 | | 196,357 | | 196,889 | | 197,239 | | 198,206 | | 196,357 | | 198,882 |
| Price per share beginning of period | | $26.93 | | $27.78 | | $28.30 | | $28.46 | | $28.27 | | $27.78 | | $28.30 |
| Market capitalization beginning of period (B) | | $5,288,890 | | $5,454,797 | | $5,571,959 | | $5,613,422 | | $5,603,284 | | $5,454,797 | | $5,628,361 |
Contacts
Donna Townsell
Director of Investor Relations
(501) 328-4625