PARK NATIONAL CORP /OH/

Previous wording

Management has included in the tables included within the "Items Impacting Comparability" section of this MD&A information relating to the annualized return on average tangible equity, the annualized return on average tangible assets and pre-tax, pre-provision net income for the three months ended and at June 30, 2026, March 31, 2026, and June 30, 2025 and for the six months ended June 30, 2026 and June 30, 2025. For the purpose of calculating the annualized return on average tangible equity, a non-U.S. GAAP financial measure, net income for each period is divided by average tangible equity during the period. Average tangible equity equals average shareholders' equity during the applicable period less average goodwill and other intangible assets during the applicable period. For the purpose of calculating the annualized return on average tangible assets, a non-U.S. GAAP financial measure, net income for each period is divided by average tangible assets during the period. Average tangible assets equals average assets during the applicable period less average goodwill and other intangible assets during the applicable period. For the purpose of calculating pre-tax, pre-provision net income, a non-U.S. GAAP financial measure, income taxes and the provision for credit losses are added back to net income, in each case during the applicable period.

Current wording

Management has included in the tables included within the "Items Impacting Comparability" section of this MD&A information relating to the annualized return on average tangible equity, the annualized return on average tangible assets and pre-tax, pre-provision net income for the three months ended and at September 30, 2026 and September 30, 2025 and for the nine months ended September 30, 2026 and September 30, 2025. For the purpose of calculating the annualized return on average tangible equity, a non-U.S. GAAP financial measure, net income for each period is divided by average tangible equity during the period. Average tangible equity equals average shareholders' equity during the applicable period less average goodwill and other intangible assets during the applicable period. For the purpose of calculating the annualized return on average tangible assets, a non-U.S. GAAP financial measure, net income for each period is divided by average tangible assets during the period. Average tangible assets equals average assets during the applicable period less average goodwill and other intangible assets during the applicable period. For the purpose of calculating pre-tax, pre-provision net income, a non-U.S. GAAP financial measure, income taxes and the provision for credit losses are added back to net income, in each case during the applicable period.

Previous wording

As noted above, in calculating the ACL, management weighs different scenarios, including a baseline (most likely) scenario and an adverse scenario. At June 30, 2026, management applied a 50% weighting to the baseline scenario and applied a 50% weighting to the adverse scenario. To create hypothetical sensitivity analyses, management calculated a quantitative allowance using a 100% weighting applied to a baseline scenario and a quantitative allowance using a 100% weighting applied to an adverse scenario. The adverse scenario assumes among other things that: (1) Russia’s invasion of Ukraine will persist longer than expected. Risk increases that China might block the Taiwan Strait. Business and consumer confidence declines. Declines in European economies and retaliatory tariffs hurt US exports and corporate earnings in subsidiaries. (2) The negotiations between the U.S. and Iran take much longer than expected. Furthermore, the damage to energy infrastructure is worse than expected and takes longer to repair. As a result, the decline in oil prices in the third quarter is less than in the Baseline forecast, to about $98 per barrel for Brent, compared with about $91 in the Baseline forecast. (3) The combination of recession and rising inflation cause the Federal Reserve to lower federal funds rates in Q3 2026 but only slightly below baseline for a couple of quarters. As the recession persists and inflation subsides the Federal Reserve subsequently reduces the federal funds rate more significantly. (4) Europe goes into a recession as increased tariffs lower exports. Populism in Europe rises, raising uncertainties about longevity of the Euro zone and causes financial stress to highly indebted nations, especially Italy. These developments further lower US exports and corporate earnings of foreign subsidiaries of US companies. (5) The tariff rate rises to 15%, more than the 8% in baseline, and it remains there through the end of 2028. There is full and permanent extension of the Tax Cuts and Jobs Act with enhancements included in the One Big Beautiful Bill Act. Growth in Medicaid and food assistance funding is reduced but rising health care costs will keep upward pressure on public health spending and the discretionary non-defense budget is capped below historic average. Defense spending is expected to grow. Tax revenues are lower than in the baseline creating a higher deficit and concerns about national debt level raises uncertainty over the course of tax policy. Though no crisis materializes, business and consumer sentiment is damaged. (6) Recession Q2 2026 and lasts through Q1 2027 and real GDP declines by 2.6%. Unemployment rate rises to a peak of 8.5% in Q3 2027. The stock market falls 35% from Q2 2026 to

Current wording

As noted above, in calculating the ACL, management weighs different scenarios, including a baseline (most likely) scenario and an adverse scenario. At September 30, 2026, management applied a 50% weighting to the baseline scenario and applied a 50% weighting to the adverse scenario. To create hypothetical sensitivity analyses, management calculated a quantitative allowance using a 100% weighting applied to a baseline scenario and a quantitative allowance using a 100% weighting applied to an adverse scenario. The adverse scenario assumes among other things that: (1) Russia’s invasion of Ukraine will persist longer than expected. Risk increases that China might block the Taiwan Strait. Business and consumer confidence declines. Declines in European economies and retaliatory tariffs hurt US exports and corporate earnings in subsidiaries. (2) The decline in oil prices in the fourth quarter is slightly deeper than in the Baseline forecast, to about $79 per barrel for Brent, compared with about $83 per barrel in the Baseline forecast. (3) The combination of recession and rising inflation cause the Federal Reserve to lower federal funds rates in Q4 2026 but only slightly below baseline for a couple of quarters. As the recession persists and inflation subsides the Federal Reserve subsequently reduces the federal funds rate more significantly. (4) Europe goes into a recession as increased tariffs lower exports. Populism in Europe rises, raising uncertainties about longevity of the Euro zone and causes financial stress to highly indebted nations, especially Italy. These developments further lower US exports and corporate earnings of foreign subsidiaries of US companies. (5) The tariff rate rises to 15%, more than the 8% in baseline, and it remains there through the end of 2028. There is full and permanent extension of the Tax Cuts and Jobs Act with enhancements included in the One Big Beautiful Bill Act. Growth in Medicaid and food assistance funding is reduced but rising health care costs will keep upward pressure on public health spending and the discretionary non-defense budget is capped below historic average. Defense spending is expected to grow. Tax revenues are lower than in the baseline creating a higher deficit and concerns about national debt level raises uncertainty over the course of tax policy. Though no crisis materializes, business and consumer sentiment is damaged. (6) Recession starts in the Q3 2026 and lasts through Q2 2027 and real GDP declines by 2.7%. Unemployment rate rises to a peak of 8.4% in Q4 2027. The stock market falls 35% from Q3 2026 to Q2

Previous wording

Q1 2027. Excluding consideration of qualitative adjustments, this sensitivity analysis would result in a hypothetical increase in Park's ACL of $31.6 million as of June 30, 2026 if only the adverse scenario was used. Excluding consideration of qualitative adjustments, a corresponding $31.6 million decrease in Park's ACL would occur in a hypothetical scenario if only the baseline (most likely) scenario was used.

Current wording

Excluding consideration of qualitative adjustments, this sensitivity analysis would result in a hypothetical increase in Park's ACL of $30.7 million as of September 30, 2026 if only the adverse scenario was used. Excluding consideration of qualitative adjustments, a corresponding $30.7 million decrease in Park's ACL would occur in a hypothetical scenario if only the baseline (most likely) scenario was used.

Previous wording

Refer to the "Credit Metrics and Provision for Credit Losses" section of this MD&A for additional discussion.

Current wording

Refer to the "Credit Metrics and (Recovery of) Provision for Credit Losses" section of this MD&A for additional discussion.

Previous wording

On the acquisition date, First Citizens had $2.6 billion in total assets, $1.6 billion in total loans, and $2.2 billion in total deposits. The acquisition was valued at $324.1 million and resulted in Park issuing 1,988,131 Park common shares as merger consideration in exchange for First Citizens outstanding common stock. For the six months ended June 30, 2026, Park recorded merger-related expenses of $19.6 million associated with the First Citizens acquisition.

Current wording

On the acquisition date, First Citizens had $2.6 billion in total assets, $1.6 billion in total loans, and $2.2 billion in total deposits. The acquisition was valued at $324.1 million and resulted in Park issuing 1,988,131 Park common shares as merger consideration in exchange for First Citizens outstanding common stock. For the nine months ended September 30, 2026, Park recorded merger-related expenses and other income reducing charges of $26.5 million associated with the First Citizens acquisition.

Previous wording

The following discussion provides additional information regarding Park's financial results for the second quarter and first half of 2026.

Current wording

The following discussion provides additional information regarding Park's financial results for the third quarter and first nine months of 2026.

Previous wording

The following table reflects Park's net income for the first and second quarters of 2026, for the first half of 2026 and 2025 (the six months ended June 30), and for the year ended December 31, 2025.

Current wording

The following table reflects Park's net income for the first, second and third quarters of 2026, for the first nine months of 2026 and 2025 (the nine months ended September 30), and for the year ended December 31, 2025.

Previous wording

Net interest income of $264.6 million for the six months ended June 30, 2026 represented a $51.3 million, or 24.0%, increase compared to $213.4 million for the six months ended June 30, 2025. The increase was a result of a $58.4 million increase in interest income, partially offset by a $7.1 million increase in interest expense. The $58.4 million increase in interest income was due to a $50.5 million increase in interest income on loans and a $7.9 million increase in investment income.

Current wording

Net interest income of $405.4 million for the nine months ended September 30, 2026 represented a $81.0 million, or 25.0%, increase compared to $324.4 million for the nine months ended September 30, 2025. The increase was a result of a $93.3 million increase in interest income, partially offset by a $12.3 million increase in interest expense. The $93.3 million increase in interest income was due to a $81.0 million increase in interest income on loans and a $12.3 million increase in investment income.

Previous wording

The $50.5 million increase in interest income on loans was primarily the result of a $1.51 billion (or 19.22%) increase in average loans, from $7.88 billion for the six months ended June 30, 2025 to $9.39 billion for the six months ended June 30, 2026, as well as an increase in the yield on loans, which increased 7 basis points to 6.39% for the six months ended June 30, 2026, compared to 6.32% for the six months ended June 30, 2025. Interest income on loans was impacted by the acquisition of First Citizens on February 1, 2026. The newly formed Tennessee region contributed $42.1 million to loan interest income during the six months ended June 30, 2026.

Current wording

The $81.0 million increase in interest income on loans was primarily the result of a $1.61 billion (or 20.34%) increase in average loans, from $7.90 billion for the nine months ended September 30, 2025 to $9.51 billion for the nine months ended September 30, 2026, as well as an increase in the yield on loans, which increased 8 basis points to 6.40% for the nine months ended September 30, 2026, compared to 6.32% for the nine months ended September 30, 2025. Interest income on loans was impacted by the acquisition of First Citizens on February 1, 2026. The newly formed Tennessee region contributed $68.7 million to loan interest income during the nine months ended September 30, 2026, including purchase accounting accretion of $1.6 million.

Previous wording

The $7.9 million increase in investment income was primarily the result of a $443.6 million (or 32.78%) increase in average investments, including money market investments, from $1.35 billion for the six months ended June 30, 2025 to $1.80 billion for the six months ended June 30, 2026. This increase was also impacted by an increase in the yield on investments, including money market investments, which increased 8 basis points to 3.54% for the six months ended June 30, 2026, compared to 3.46% for the six months ended June 30, 2025.

Current wording

The $12.3 million increase in investment income was primarily the result of a $443.6 million (or 32.03%) increase in average investments, including money market investments, from $1.38 billion for the nine months ended September 30, 2025 to $1.83 billion for the nine months ended September 30, 2026. This increase was also impacted by an increase in the yield on investments, including money market investments, which increased 11 basis points to 3.58% for the nine months ended September 30, 2026, compared to 3.47% for the nine months ended September 30, 2025. The increase in average investments was primarily due to the acquisition of First Citizens.

Previous wording

The $7.1 million increase in interest expense was due to a $10.9 million increase in interest expense on deposits, partially offset by a $3.8 million decrease in interest expense on borrowings.

Current wording

The $12.3 million increase in interest expense was due to a $17.1 million increase in interest expense on deposits, partially offset by a $4.8 million decrease in interest expense on borrowings.

Previous wording

The increase in interest expense on deposits was the result of a $1.64 billion (or 28.29%) increase in average on-balance sheet interest bearing deposits from $5.78 billion for the six months ended June 30, 2025, to $7.42 billion for the six months ended June 30, 2026. This increase was partially offset by a decrease in the cost of deposits of 9 basis points, from 1.75% for the six months ended June 30, 2025 to 1.66% for the six months ended June 30, 2026. Interest expense on deposits was impacted by the acquisition of First Citizens which contributed $17.7 million to interest expense on deposits during the six months ended June 30, 2026.

Current wording

The $17.1 million increase in interest expense on deposits was the result of a $1.65 billion (or 28.29%) increase in average on-balance sheet interest bearing deposits from $5.83 billion for the nine months ended September 30, 2025, to $7.48 billion for the nine months ended September 30, 2026. This increase was partially offset by a decrease in the cost of deposits of 7 basis points, from 1.74% for the nine months ended September 30, 2025 to 1.67% for the nine months ended September 30, 2026. Interest expense on deposits was impacted by the acquisition of First Citizens which contributed $27.7 million to interest expense on deposits during the nine months ended September 30, 2026.

Previous wording

The decrease in interest expense on borrowings was the result of a decrease in the cost of borrowings of 165 basis points, from 3.93% for the six months ended June 30, 2025 to 2.28% for the six months ended June 30, 2026 as well as a $141.0 million (or 52.37%) decrease in average borrowings from $269.2 million for the six months ended June 30, 2025, to $128.2 million for the six months ended June 30, 2026. The balance of average borrowings was impacted by the redemption of subordinated debt. On September 1, 2025, $175.0 million of subordinated debt was repaid, followed by an additional repayment of $15.0 million of subordinated debt on September 30, 2025.

Current wording

The $4.8 million decrease in interest expense on borrowings was the result of a decrease in the cost of borrowings of 153 basis points, from 3.82% for the nine months ended September 30, 2025 to 2.29% for the nine months ended September 30, 2026 as well as a $114.4 million (or 45.53%) decrease in average borrowings from $251.3 million for the nine months ended September 30, 2025, to $136.9 million for the nine months ended September 30, 2026. The balance of average borrowings was impacted by the redemption of subordinated debt. On September 1, 2025, $175.0 million of subordinated debt was repaid, followed by an additional repayment of $15.0 million of subordinated debt on September 30, 2025.

Previous wording

The provision for credit losses of $7.2 million for the six months ended June 30, 2026 represented an increase of $3.6 million, compared to $3.6 million for the six months ended June 30, 2025. Refer to the “Credit Metrics and Provision for Credit Losses” section for additional details regarding the level of the provision for credit losses recognized in each period presented.

Current wording

The provision for credit losses of $6.3 million for the nine months ended September 30, 2026 represented a decrease of $1.4 million, compared to $7.6 million for the nine months ended September 30, 2025. Refer to the “Credit Metrics and Provision for Credit Losses” section for additional details regarding the level of the provision for credit losses recognized in each period presented.

Previous wording

Other income of $73.3 million for the six months ended June 30, 2026 represented an increase of $15.3 million, or 26.5%, compared to $57.9 million for the six months ended June 30, 2025. Total other income was impacted by the acquisition of First Citizens which added $6.9 million to total other income for the six months ended June 30, 2026. Refer to the “Other Income” section for additional details regarding the change in other income for the six months ended June 30, 2026 compared to the six months ended June 30, 2025.

Current wording

Other income of $109.9 million for the nine months ended September 30, 2026 represented an increase of $21.4 million, or 24.2%, compared to $88.5 million for the nine months ended September 30, 2025. Total other income was impacted by the acquisition of First Citizens which added $9.0 million to total other income for the nine months ended September 30, 2026. Refer to the “Other Income” section for additional details regarding the change in other income for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025.

Previous wording

Total other expense of $206.1 million for the six months ended June 30, 2026 represented an increase of $49.0 million compared to $157.1 million for the six months ended June 30, 2025. Included within total other expense were merger-related costs, along with the expanded other expense base that stems from the acquisition of First Citizens. Total other expense for the six months ended 2026 included $19.6 million in merger-related expenses and $24.7 million related to Park's newly formed Tennessee region and other acquired entities. Refer to the “Other Expense” section for additional details regarding the change in other expense for the six months ended June 30, 2026 compared to the six months ended June 30, 2025.

Current wording

Total other expense of $313.7 million for the nine months ended September 30, 2026 represented an increase of $77.1 million compared to $236.6 million for the nine months ended September 30, 2025. Included within total other expense are merger-related costs, along with the expanded other expense base that stems from the acquisition of First Citizens. Total other expense for the nine months ended 2026 included $26.3 million in merger-related expenses and $38.4 million related to Park's newly formed Tennessee region and other acquired entities. Refer to the “Other Expense” section for additional details regarding the change in other expense for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025.

Previous wording

The table below provides certain balance sheet information and financial ratios for Park as of or for the six months ended June 30, 2026 and 2025 and the year ended December 31, 2025.

Current wording

The table below provides certain balance sheet information and financial ratios for Park as of or for the nine months ended September 30, 2026 and 2025 and the year ended December 31, 2025.

Previous wording

(2) Efficiency ratio is calculated by dividing total other expense by the sum of fully taxable equivalent net interest income and other income. Fully taxable equivalent net interest income includes the effects of taxable equivalent adjustments using a 21% federal corporate income tax rate. The taxable equivalent adjustments were $1.9 million, $1.3 million and $2.7 million, respectively, for the six months ended June 30, 2026 and 2025 and the year ended December 31, 2025, respectively.

Current wording

(2) Efficiency ratio is calculated by dividing total other expense by the sum of fully taxable equivalent net interest income and other income. Fully taxable equivalent net interest income includes the effects of taxable equivalent adjustments using a 21% federal corporate income tax rate. The taxable equivalent adjustments were $3.0 million, $2.0 million and $2.7 million, respectively, for the nine months ended September 30, 2026 and 2025 and the year ended December 31, 2025, respectively.

Previous wording

Loans outstanding at June 30, 2026 were $9.73 billion, compared to (i) $8.05 billion at December 31, 2025, an increase of $1.68 billion, and (ii) $7.96 billion at June 30, 2025, an increase of $1.77 billion. The table below breaks out the change in loans outstanding, by loan type.

Current wording

Loans outstanding at September 30, 2026 were $9.77 billion, compared to (i) $8.05 billion at December 31, 2025, an increase of $1.72 billion, and (ii) $7.99 billion at September 30, 2025, an increase of $1.78 billion. The table below breaks out the change in loans outstanding, by loan type.

Previous wording

Excluding loans outstanding in Park's newly formed Tennessee region, loans outstanding at June 30, 2026 were $8.14 billion, compared to (i) $8.05 billion at December 31, 2025, an increase of $93.7 million, and (ii) $7.96 billion at June 30, 2025, an increase of $181.7 million. The table below breaks out the change in loans outstanding, by loan type.

Current wording

Excluding loans outstanding in Park's newly formed Tennessee region, loans outstanding at September 30, 2026 were $8.19 billion, compared to (i) $8.05 billion at December 31, 2025, an increase of $137.9 million, and (ii) $7.99 billion at September 30, 2025, an increase of $196.3 million. The table below breaks out the change in loans outstanding, by loan type.

Previous wording

Park's allowance for credit losses was $110.7 million at June 30, 2026, compared to $93.0 million at December 31, 2025, an increase of $17.7 million, or 19.1%. Refer to the “Credit Metrics and Provision for Credit Losses” section for additional information regarding Park's loan portfolio and the level of provision for credit losses recognized in each period presented.

Current wording

Park's allowance for credit losses was $109.9 million at September 30, 2026, compared to $93.0 million at December 31, 2025, an increase of $16.9 million, or 18.2%. Refer to the “Credit Metrics and Provision for Credit Losses” section for additional information regarding Park's loan portfolio and the level of provision for credit losses recognized in each period presented.

Previous wording

Total deposits at June 30, 2026 were $10.67 billion, compared to (i) $8.24 billion at December 31, 2025, an increase of $2.43 billion and (ii) $8.24 billion at June 30, 2025, an increase of $2.43 billion. Total deposits including off balance sheet deposits at June 30, 2026 were $10.67 billion, compared to (i) $8.35 billion at December 31, 2025, an increase of $2.32 billion and (ii) $8.49 billion at June 30, 2025, an increase of $2.18 billion.

Current wording

Total deposits at September 30, 2026 were $10.62 billion, compared to (i) $8.24 billion at December 31, 2025, an increase of $2.38 billion and (ii) $8.33 billion at September 30, 2025, an increase of $2.29 billion. Total deposits including off balance sheet deposits at September 30, 2026 were $10.62 billion, compared to (i) $8.35 billion at December 31, 2025, an increase of $2.28 billion and (ii) $8.48 billion at September 30, 2025, an increase of $2.14 billion.

Previous wording

Excluding total deposits in Park's newly formed Tennessee region, total deposits at June 30, 2026 were $8.51 billion, compared to (i) $8.24 billion at December 31, 2025, an increase of $270.6 million and (ii) $8.24 billion at June 30, 2025, an increase of $276.5 million. Total deposits, excluding total deposits in Park's newly formed Tennessee region, including off balance sheet deposits at June 30, 2026 were $8.51 billion, compared to (i) $8.35 billion at December 31, 2025, an increase of $165.3 million and (ii) $8.49 billion at June 30, 2025, an increase of $21.4 million.

Current wording

Excluding total deposits in Park's newly formed Tennessee region, total deposits at September 30, 2026 were $8.58 billion, compared to (i) $8.24 billion at December 31, 2025, an increase of $339.0 million and (ii) $8.33 billion at September 30, 2025, an increase of $252.8 million. Total deposits, excluding total deposits in Park's newly formed Tennessee region, including off balance sheet deposits at September 30, 2026 were $8.58 billion, compared to (i) $8.35 billion at December 31, 2025, an increase of $233.8 million and (ii) $8.48 billion at September 30, 2025, an increase of $102.0 million.

Previous wording

During the six months ended June 30, 2026, total deposits including off balance sheet deposits increased by $2.32 billion, or 27.8%. This increase consisted of a $1.21 billion increase in total commercial deposits, a $1.19 billion increase in retail deposits and a $23.3 million increase in brokered and bid CD deposits, partially offset by a $105.3 million decrease in off balance sheet deposits. The majority of off balance sheet deposits are commercial and thus impact the change in commercial deposits as the deposits are moved on or off the balance sheet.

Current wording

During the nine months ended September 30, 2026, total deposits including off balance sheet deposits increased by $2.28 billion, or 27.3%. This increase consisted of a $1.21 billion increase in total commercial deposits, a $1.14 billion increase in retail deposits and a $23.3 million increase in brokered and bid CD deposits, partially offset by a $105.3 million decrease in off balance sheet deposits. The majority of off balance sheet deposits are commercial and thus impact the change in commercial deposits as the deposits are moved on or off the balance sheet.

Previous wording

1 Cost of funds for the six months ended June 30, 2026 and 2025 and for the year ended December 31, 2025.

Current wording

1 Cost of funds for the nine months ended September 30, 2026 and 2025 and for the year ended December 31, 2025.

Previous wording

As of June 30, 2026, Park had approximately $2.3 billion of uninsured deposits, which was 21.5% of total deposits. Uninsured deposits of $2.3 billion included $699 million of deposits that were over $250,000, but were fully collateralized by Park's investment securities portfolio.

Current wording

As of September 30, 2026, Park had approximately $2.3 billion of uninsured deposits, which was 22.0% of total deposits. Uninsured deposits of $2.3 billion included $635 million of deposits that were over $250,000, but were fully collateralized by Park's investment securities portfolio.

Previous wording

Comparison for the Second Quarters of 2026 and 2025

Current wording

Comparison for the Third Quarters of 2026 and 2025

Previous wording

Net interest income increased by $29.9 million, or 27.4%, to $138.9 million for the second quarter of 2026, compared to $109.0 million for the second quarter of 2025. See the discussion under the table below.

Current wording

Net interest income increased by $29.7 million, or 26.8%, to $140.7 million for the third quarter of 2026, compared to $111.0 million for the third quarter of 2025. See the discussion under the table below.

Previous wording

Average interest bearing liabilities for the second quarter of 2026 increased by $1.82 billion, or 30.1%, to $7.86 billion, compared to $6.04 billion for the second quarter of 2025. The average cost of interest bearing liabilities decreased by 12 basis points to 1.71% for the second quarter of 2026, compared to 1.83% for the second quarter of 2025.

Current wording

Average interest bearing liabilities for the third quarter of 2026 increased by $1.61 billion, or 26.3%, to $7.76 billion, compared to $6.15 billion for the third quarter of 2025. The average cost of interest bearing liabilities decreased by 11 basis points to 1.69% for the third quarter of 2026, compared to 1.80% for the third quarter of 2025.

Previous wording

Yield on Loans: Average loan balances increased $1.77 billion, or 22.3%, to $9.69 billion for the second quarter of 2026, compared to $7.92 billion for the second quarter of 2025. The average yield on the loan portfolio increased by 5 basis points to 6.42% for the second quarter of 2026, compared to 6.37% for the second quarter of 2025.

Current wording

Yield on Loans: Average loan balances increased $1.79 billion, or 22.5%, to $9.73 billion for the third quarter of 2026, compared to $7.94 billion for the third quarter of 2025. The average yield on the loan portfolio increased by 8 basis points to 6.42% for the third quarter of 2026, compared to 6.34% for the third quarter of 2025.

Previous wording

Cost of Deposits: Average interest bearing deposit balances increased $1.95 billion, or 33.8%, to $7.72 billion for the second quarter of 2026, compared to $5.77 billion for the second quarter of 2025. The average cost of funds on deposit balances decreased by 3 basis points to 1.70% for the second quarter of 2026, compared to 1.73% for the second quarter of 2025. The table below shows for the three months ended June 30, 2026 and 2025, the average balance and cost of funds by type of deposit.

Current wording

Cost of Deposits: Average interest bearing deposit balances increased $1.68 billion, or 28.3%, to $7.61 billion for the third quarter of 2026, compared to $5.93 billion for the third quarter of 2025. The average cost of funds on deposit balances decreased by 6 basis points to 1.68% for the third quarter of 2026, compared to 1.74% for the third quarter of 2025. The table below shows for the three months ended September 30, 2026 and 2025, the average balance and cost of funds by type of deposit.

Previous wording

Net interest income increased by $51.3 million, or 24.0%, to $264.6 million for the first half of 2026, compared to $213.4 million for the first half of 2025. See the discussion under the table below.

Current wording

Net interest income increased by $81.0 million, or 25.0%, to $405.4 million for the first nine months of 2026, compared to $324.4 million for the first nine months of 2025. See the discussion under the table below.

Previous wording

Average interest earning assets for the first half of 2026 increased by $1.96 billion, or 21.2%, to $11.19 billion for the first half of 2026, compared to $9.23 billion for the first half of 2025. The average yield on interest earning assets increased by 3 basis points to 5.93% for the first half of 2026, compared to 5.90% for the first half of 2025.

Current wording

Average interest earning assets for the first nine months of 2026 increased by $2.05 billion, or 22.1%, to $11.33 billion for the first nine months of 2026, compared to $9.28 billion for the first nine months of 2025. The average yield on interest earning assets increased by 4 basis points to 5.94% for the first nine months of 2026, compared to 5.90% for the first nine months of 2025.

Previous wording

Average interest bearing liabilities for the first half of 2026 increased by $1.49 billion, or 24.7%, to $7.55 billion, compared to $6.05 billion for the first half of 2025. The average cost of interest bearing liabilities decreased by 17 basis points to 1.67% for the first half of 2026, compared to 1.84% for the first half of 2025.

Current wording

Average interest bearing liabilities for the first nine months of 2026 increased by $1.54 billion, or 25.2%, to $7.62 billion, compared to $6.08 billion for the first nine months of 2025. The average cost of interest bearing liabilities decreased by 15 basis points to 1.68% for the first nine months of 2026, compared to 1.83% for the first nine months of 2025.

Previous wording

Interest income and interest expense for the six months ended June 30, 2026 and June 30, 2025, included purchase accounting accretion on loans and deposits, as well as payments received on former Vision Bank impaired loan relationships, some of which were participated with PNB. The tables below show the impact of these items on interest earning assets and interest bearing liabilities.

Current wording

Interest income and interest expense for the nine months ended September 30, 2026 and September 30, 2025, included purchase accounting accretion on loans and deposits, as well as payments received on former Vision Bank impaired loan relationships, some of which were participated with PNB. The tables below show the impact of these items on interest earning assets and interest bearing liabilities.

Previous wording

Yield on Loans: Average loan balances increased $1.51 billion, or 19.2%, to $9.39 billion for the first half of 2026, compared to $7.88 billion for the first half of 2025. The average yield on the loan portfolio increased by 7 basis points to 6.39% for the first half of 2026, compared to 6.32% for the first half of 2025.

Current wording

Yield on Loans: Average loan balances increased $1.61 billion, or 20.3%, to $9.51 billion for the first nine months of 2026, compared to $7.90 billion for the first nine months of 2025. The average yield on the loan portfolio increased by 8 basis points to 6.40% for the first nine months of 2026, compared to 6.32% for the first nine months of 2025.

Previous wording

The table below shows the average balance and tax equivalent yield by type of loan for the six months ended June 30, 2026 and 2025.

Current wording

The table below shows the average balance and tax equivalent yield by type of loan for the nine months ended September 30, 2026 and 2025.

Previous wording

Interest income for the six months ended June 30, 2026 and June 30, 2025, included purchase accounting accretion on loans, as well as payments received on former Vision Bank impaired loan relationships, some of which were participated with PNB. The tables below show the impact on the tax equivalent yield by type of loan excluding the impact of these items.

Current wording

Interest income for the nine months ended September 30, 2026 and September 30, 2025, included purchase accounting accretion on loans, as well as payments received on former Vision Bank impaired loan relationships, some of which were participated with PNB. The tables below show the impact on the tax equivalent yield by type of loan excluding the impact of these items.

Previous wording

Cost of Deposits: Average interest bearing deposit balances increased $1.64 billion, or 28.3%, to $7.42 billion for the first half of 2026, compared to $5.78 billion for the first half of 2025. The average cost of funds on deposit balances decreased by 9 basis points to 1.66% for the first half of 2026, compared to 1.75% for the first half of 2025. The table below shows for the six months ended June 30, 2026 and 2025, the average balance and cost of funds by type of deposit.

Current wording

Cost of Deposits: Average interest bearing deposit balances increased $1.65 billion, or 28.3%, to $7.48 billion for the first nine months of 2026, compared to $5.83 billion for the first nine months of 2025. The average cost of funds on deposit balances decreased by 7 basis points to 1.67% for the first nine months of 2026, compared to 1.74% for the first nine months of 2025. The table below shows for the nine months ended September 30, 2026 and 2025, the average balance and cost of funds by type of deposit.

Previous wording

Interest expense for the six months ended June 30, 2026 included purchase accounting accretion on deposits. The table below shows the impact on the tax equivalent yield by type of deposit excluding the impact of these items. There was no purchase accounting accretion on deposits for the six months ended June 30, 2025.

Current wording

Interest expense for the nine months ended September 30, 2026 included purchase accounting accretion on deposits. The table below shows the impact on the tax equivalent yield by type of deposit excluding the impact of these items. There was no purchase accounting accretion on deposits for the nine months ended September 30, 2025.