HOME BANCSHARES INC
For the period ended Jun 30, 2025. Filed Aug 5, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 5, 2025
HOMB$29.86-0.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-05.
0001331520-25-000104
Item 2. : Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-05.
0001331520-25-000135
Item 2. : Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 233 previous paragraphs and 262 current paragraphs.
159 unchanged; 68 reworded; 29 added; 6 removed; 0 previous and 6 current paragraphs rearranged.
Tables are not compared: 33 previous and 37 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (29)
Current report
Our net income increased $16.9 million, or 16.6%, to $118.4 million for the three-month period ended June 30, 2025, from $101.5 million for the same period in 2024. On a diluted earnings per share basis, our earnings were $0.60 per share for the three-month period ended June 30, 2025 compared to $0.51 per share for the three-month period ended June 30, 2024. During the three months ended June 30, 2025, the Company recorded $3.0 million in provision for credit losses on loans. In addition, management determined that a provision was not necessary for the unfunded commitments as the current level of the reserve was considered adequate. During the three months ended June 30, 2025, the Company recorded $3.5 million in special income from equity investments, $1.5 million in income from an FDIC assessment reduction, $1.2 million in BOLI death benefits, $983,000 gain on sale of bank premises and equipment and $885,000 in legal fee reimbursements. These items were partially offset by $3.3 million in legal claims expense and a $238,000 decrease in the fair value of marketable securities.
Current report
Total interest expense decreased $16.3 million, or 14.1%, and non-interest income increased $8.3 million, or 19.4%. This was partially offset by an $8.2 million, or 2.5%, decrease in total interest income and a $2.9 million, or 2.5%, increase in non-interest expense. The decrease in interest expense was primarily due to an $8.7 million, or 61.1%, decrease in interest on FHLB and other borrowed funds and a $7.3 million, or 7.6%, decrease in interest on deposits. The increase in non-interest income was primarily due to a $6.8 million, or 102.2%, increase in other income and a $2.0 million, or 18.4%, increase in other service charges and fees. Included within other income was the $3.5 million in special income from equity investments. The decrease in interest income resulted from a $6.3 million, or 15.6%, decrease in investment interest income and a $3.6 million, or 28.8%, decrease in interest income on deposits at other banks, which were partially offset by a $1.7 million, or 0.6%, increase in loan interest income. The increase in non-interest expense was primarily due to a $3.9 million, or 6.4%, increase in salaries and employee benefits expense, which were partially offset by a $571,000, or 6.4%, decrease in data processing expense and a $385,000, or 2.7%, decrease in occupancy and equipment expense.
Current report
Our net income increased $32.0 million, or 15.9%, to $233.6 million for the six-month period ended June 30, 2025, from $201.6 million for the same period in 2024. On a diluted earnings per share basis, our earnings were $1.18 per share for the six-month period ended June 30, 2025 compared to $1.00 per share for the six-month period ended June 30, 2024. During the six months-ended June 30, 2025, the Company recorded $3.0 million in provision for credit losses on loans. In addition, management determined that a provision was not necessary for the unfunded commitments as the current level of the reserve was considered adequate. During the six months ended June 30, 2025, the Company recorded $7.4 million in special income from equity investments, $1.5 million in income from an FDIC assessment reduction, $1.2 million in BOLI death benefits, $983,000 gain on sale of bank premises and equipment, $885,000 in legal fee reimbursements and a $204,000 increase in the fair value of marketable securities, which was partially offset by $3.3 million in legal claims expense.
Current report
Our net interest margin increased from 4.20% for the six-month period ended June 30, 2024 to 4.44% for the six-month period ended June 30, 2025. The yield on interest earning assets was 6.43% and 6.47% for the six months ended June 30, 2025 and 2024, respectively, and average interest earning assets decreased from $20.12 billion to $19.96 billion. The decrease in average interest earning assets is primarily due to a $419.4 million decrease in average investment securities and a $152.2 million decrease in average interest-bearing balances due from banks, which was partially offset by a $407.1 million increase in average loans receivable. For the six months ended June 30, 2025 and 2024, we recognized $2.6 million and $4.6 million, respectively, in total net accretion for acquired loans and deposits. The reduction in accretion was dilutive to the net interest margin by two basis points. We recognized $1.8 million in event income for the six-months ended June 30, 2025 compared to $2.8 million for the six-months ended June 30, 2024. The reduction in accretion was dilutive to the net interest margin by one basis point. The cost of interest bearing liabilities decreased from 2.96% for the six-months ended June 30, 2024 to 2.65% for the six-months ended June 30, 2025, and average interest-bearing liabilities decreased from $14.69 billion to $14.49 billion. The decrease in average interest-bearing liabilities is primarily due to a $717.3 million decrease in FHLB and other borrowed funds, which was partially offset by a $529.0 million increase in average interest-bearing deposits. During the second quarter of 2024, the Company held excess liquidity of approximately $500.0 million, primarily related to the BTFP advance, which was dilutive to the net interest margin by approximately 10 basis points. The Company paid off the advance in November 2024. The overall increase in the net interest margin was due to a decrease in interest expense resulting from a decrease in interest rates paid on interest-bearing liabilities, a decrease in the average balance of interest-bearing liabilities and an increase the average balance of interest-earning assets, which was partially offset by a decrease in interest income due to a reduction in asset yields.
Current report
Our efficiency ratio was 41.94% for the six months ended June 30, 2025, compared to 43.69% for the same period in 2024. For the six months ended June 30, 2025, our efficiency ratio, as adjusted (non-GAAP), was 42.42%, compared to 43.50% reported for the same period of 2024. (See Table 29 for the non-GAAP tabular reconciliation).
Current report
For the three and six months ended June 30, 2025 and 2024
Current report
Our net income increased $16.9 million, or 16.6%, to $118.4 million for the three-month period ended June 30, 2025, from $101.5 million for the same period in 2024. On a diluted earnings per share basis, our earnings were $0.60 per share for the three-month period ended June 30, 2025 compared to $0.51 per share for the three-month period ended June 30, 2024. During the three months ended June 30, 2025, the Company recorded $3.0 million in provision for credit losses on loans. In addition, management determined that a provision was not necessary for the unfunded commitments as the current level of the reserve was considered adequate. During the three months ended June 30, 2025, the Company recorded $3.5 million in special income from equity investments, $1.5 million in income from an FDIC assessment reduction, $1.2 million in BOLI death benefits, $983,000 gain on sale of bank premises and equipment and $885,000 in legal fee reimbursements. These items were partially offset by $3.3 million in legal claims expense and a $238,000 decrease in the fair value of marketable securities.
Current report
Our net income increased $32.0 million, or 15.9%, to $233.6 million for the six-month period ended June 30, 2025, from $201.6 million for the same period in 2024. On a diluted earnings per share basis, our earnings were $1.18 per share for the six-month period ended June 30, 2025 compared to $1.00 per share for the six-month period ended June 30, 2024. During the six months-ended June 30, 2025, the Company recorded $3.0 million in provision for credit losses on loans. In addition, management determined that a provision was not necessary for the unfunded commitments as the current level of the reserve was considered adequate. During the six months ended June 30, 2025, the Company recorded $7.4 million in special income from equity investments, $1.5 million in income from an FDIC assessment reduction, $1.2 million in BOLI death benefits, $983,000 gain on sale of bank premises and equipment, $885,000 in legal fee reimbursements and a $204,000 increase in the fair value of marketable securities, which was partially offset by $3.3 million in legal claims expense.
Current report
Our net interest margin increased from 4.27% for the three-month period ended June 30, 2024 to 4.44% for the three-month period ended June 30, 2025. The yield on interest earning assets was 6.42% and 6.56% for the three months ended June 30, 2025 and 2024, respectively, and average interest earning assets decreased from $20.21 billion to $20.08 billion. The decrease in average interest earning assets is primarily due to a $116.1 million decrease in average interest-bearing balances due from banks and a $422.0 million decrease in average investment securities, partially offset by a $406.9 million increase in average loans receivable. For the three months ended June 30, 2025 and 2024, we recognized $1.2 million and $1.9 million, respectively, in total net accretion for acquired loans and deposits. We recognized $516,000 in event income for the three-months ended June 30, 2025 compared to $1.7 million for the three-months ended June 30, 2024. The reduction in accretion was dilutive to the net interest margin by three basis points. The cost of interest bearing liabilities decreased from 3.15% for the three-months ended June 30, 2024 to 2.73% for the three-months ended June 30, 2025, and average interest-bearing liabilities decreased from $14.75 billion to $14.58 billion. The decrease in average interest-bearing liabilities is primarily due to a $734.1 million decrease in FHLB and other borrowed funds, which was partially offset by a $576.6 million increase in average interest-bearing deposits. During the second quarter of 2024, the Company held excess liquidity of approximately $500.0 million, primarily related to the Bank Term Funding Program ("BTFP") advance, which was dilutive to the net interest margin by approximately 10 basis points. The Company paid off the advance in November 2024. The overall increase in the net interest margin was due to a decrease in interest expense resulting from a decrease in interest rates paid on interest-bearing liabilities, a decrease in the average balance of interest-bearing liabilities and an increase the average balance of interest-earning assets, which was partially offset by a decrease in interest income due to a reduction in asset yields.
Current report
Our net interest margin increased from 4.20% for the six-month period ended June 30, 2024 to 4.44% for the six-month period ended June 30, 2025. The yield on interest earning assets was 6.43% and 6.47% for the six months ended June 30, 2025 and 2024, respectively, and average interest earning assets decreased from $20.12 billion to $19.96 billion. The decrease in average interest earning assets is primarily due to a $419.4 million decrease in average investment securities and a $152.2 million decrease in average interest-bearing balances due from banks, which was partially offset by a $407.1 million increase in average loans receivable. For the six months ended June 30, 2025 and 2024, we recognized $2.6 million and $4.6 million, respectively, in total net accretion for acquired loans and deposits. The reduction in accretion was dilutive to the net interest margin by two basis points. We recognized $1.8 million in event income for the six-months ended June 30, 2025 compared to $2.8 million for the six-months ended June 30, 2024. The reduction in accretion was dilutive to the net interest margin by one basis point. The cost of interest bearing liabilities decreased from 2.96% for the six-months ended June 30, 2024 to 2.65% for the six-months ended June 30, 2025, and average interest-bearing liabilities decreased from $14.69 billion to $14.49 billion. The decrease in average interest-bearing liabilities is primarily due to a $717.3 million decrease in FHLB and other borrowed funds, which was partially offset by a $529.0 million increase in average interest-bearing deposits. During the second quarter of 2024, the Company held excess liquidity of approximately $500.0 million, primarily related to the BTFP advance, which was dilutive to the net interest margin by approximately 10 basis points. The Company paid off the advance in November 2024. The overall increase in the net interest margin was due to a decrease in interest expense resulting from a decrease in interest rates paid on interest-bearing liabilities, a decrease in the average balance of interest-bearing liabilities and an increase the average balance of interest-earning assets, which was partially offset by a decrease in interest income due to a reduction in asset yields.
Current report
Non-interest income increased $8.3 million, or 19.4%, to $51.1 million for the three months ended June 30, 2025 from $42.8 million for the same period in 2024. The primary factors in this increase were the increases in other service charges and fees, trust fees, mortgage lending income and other income, which was partially offset by the decrease in gain on sale of branches, equipment and other assets, net.
Current report
•The $512,000 increase in trust fees is primarily due to increases in IRA fees and personal trust fees.
Current report
•The $504,000 increase in mortgage lending income is primarily related to an increase in volume of secondary market loans.
Current report
•The $1.1 million decrease in the gain on sale of branches, equipment and other assets, net is primarily due to the sale of a building from our Texas region during 2024.
Current report
Additional details for the six months ended June 30, 2025 on some of the more significant changes are as follows:
Current report
•The $545,000 increase in mortgage lending income is primarily related to an increase in volume of secondary market loans.
Current report
•The $630,000 decrease in dividends from FHLB, FRB, Bankers' Bank and other was primarily due to a lower volume of dividends from the FHLB and equity investments.
Current report
•The $1.2 million decrease in the gain on sale of branches, equipment and other assets, net is primarily due to the sale of a building from our Texas region during 2024.
Current report
•The $10.9 million increase in other income is primarily due to a $7.5 million increase in fair value of equity securities, which includes 7.4 million in special income from equity investments, a $1.3 million increase in recoveries on historic losses, a $1.1 million increase in BOLI death benefit income, a $541,000 increase in miscellaneous income and a $524,000 increase in investment brokerage fee income.
Current report
•The $3.9 million increase in salaries and employee benefits expense is primarily due to an increase in incentive compensation as a result of an increase in revenue for the Company combined with the additional costs of doing business.
Current report
•The $3.9 million decrease in FDIC and state assessment expense is due to a reversal adjustment from restating call report uninsured deposits from December 2022 through December 2024, which lowered assessment expense by $1.5 million, as well as the FDIC special assessment being incurred during the second quarter of 2024. The FDIC special assessment was levied in order to recover the losses to the Deposit Insurance Fund associated with protecting uninsured depositors following the closures of Silicon Valley Bank and Signature Bank.
Current report
•Other expense increased $3.7 million primarily due to $3.3 million in legal claims expense being recorded during the second quarter of 2025.
Current report
Non-interest expense increased $4.3 million, or 1.9%, to $229.0 million for the six months ended June 30, 2025 from $224.7 million for the same period in 2024. The primary factors that resulted in this increase were the increases in salaries and employee benefits, advertising expense, legal and accounting expense and other expense, which were partially offset by the decreases in occupancy and equipment expense and FDIC and state assessment expense.
Current report
Additional details for the six months ended June 30, 2025 on some of the more significant changes are as follows:
Current report
•The $4.8 million increase in salaries and employee benefits expense is primarily due to an increase in incentive compensation as a result of an increase in revenue for the Company combined with the additional costs of doing business.
Current report
•The $636,000 increase in advertising expense is primarily due to an increased volume of advertising.
Current report
•The $3.8 million decrease in FDIC and state assessment expense is due to a reversal adjustment from restating call report uninsured deposits from December 2022 through December 2024, which lowered assessment expense by $1.5 million, as well as the FDIC special assessment being incurred during the second quarter of 2024. The FDIC special assessment was levied in order to recover the losses to the Deposit Insurance Fund associated with protecting uninsured depositors following the closures of Silicon Valley Bank and Signature Bank.
Current report
•The $3.5 million increase in other expense is primarily due to $3.3 million in legal claims expense being recorded during the second quarter of 2025.
Current report
On July 31, 2025, the Company completed the payoff of its $140.0 million in aggregate principal amount of the 2030 Notes. Each 2030 Note was redeemed pursuant to the terms of the Subordinated Indenture, dated as of July 30, 2020, between the Company and UMB Bank, the Trustee for the 2030 Notes, at the redemption price of 100% of its principal amount, plus accrued and unpaid interest to, but excluding, the Redemption Date.
Removed paragraphs (6)
Previous report
Our net income increased $15.1 million, or 15.1%, to $115.2 million for the three-month period ended March 31, 2025, from $100.1 million for the same period in 2024. On a diluted earnings per share basis, our earnings were $0.58 per share for the three-month period ended March 31, 2025 compared to $0.50 per share for the three-month period ended March 31, 2024. During the three months ended March 31, 2025, the Company did not record a provision for credit losses on loans primarily due to the $4.1 million in net recoveries experienced during the quarter. After considering the recoveries, management determined the level of the allowance for credit losses on loans was adequate. In addition, management determined that a provision was not necessary for the unfunded commitments as the current level of the reserve was considered adequate. During the three months ended March 31, 2025, the Company recorded $3.9 million in special income from equity investments and a $442,000 increase in the fair value of marketable securities.
Previous report
For the three ended March 31, 2025 and 2024
Previous report
Our net income increased $15.1 million, or 15.1%, to $115.2 million for the three-month period ended March 31, 2025, from $100.1 million for the same period in 2024. On a diluted earnings per share basis, our earnings were $0.58 per share for the three-month period ended March 31, 2025 compared to $0.50 per share for the three-month period ended March 31, 2024. During the three months ended March 31, 2025, the Company did not record a provision for credit losses on loans primarily due to the $4.1 million in net recoveries experienced during the quarter. After considering the recoveries, management determined the level of the allowance for credit losses on loans was adequate. In addition, management determined that a provision was not necessary for the unfunded commitments as the current level of the reserve was considered adequate. During the three months ended March 31, 2025, the Company recorded $3.9 million in special income from equity investments and a $442,000 increase in the fair value of marketable securities.
Previous report
Our net interest margin increased from 4.13% for the three-month period ended March 31, 2024 to 4.44% for the three-month period ended March 31, 2025. The yield on interest earning assets was 6.45% and 6.38% for the three months ended March 31, 2025 and 2024, respectively, and average interest earning assets decreased from $20.03 billion to $19.83 billion. The decrease in average interest earning assets is primarily due to a $189.5 million decrease in average interest-bearing balances due from banks and a $416.3 million decrease in average investment securities, partially offset by a $406.4 million increase in average loans receivable. During the first quarter of 2024, the Company held excess liquidity of approximately $500.0 million, primarily related to the BTFP advance, which was dilutive to the net interest margin by approximately 10 basis points. The Company paid off the advance in November 2024. For the three months ended March 31, 2025 and 2024, we recognized $1.4 million and $2.8 million, respectively, in total net accretion for acquired loans and deposits. The reduction in accretion was dilutive to the net interest margin by three basis points. We recognized $1.3 million in event income for the three-months ended March 31, 2025 compared to $1.1 million for the three-months ended March 31, 2024. The overall increase in the net interest margin was due to a decrease in interest expense resulting from a decrease in interest rates paid on interest-bearing liabilities and a decrease in the average balance of interest-bearing liabilities.
Previous report
•The $945,000 increase in salaries and employee benefits expense is primarily due to an increase in deferred loan costs.
Previous report
The $2.8 million balance of non-accrual loans for our Centennial CFG Capital Markets Group consists of two loans that are assessed for credit risk by the Federal Reserve under the Shared National Credit Program. The loans are not current on either principal or interest, and we have reversed any interest that had accrued subsequent to the non-accrual date designated by the Federal Reserve. Any interest payments that are received will be applied to the principal balance. In addition, the $22.8 million balance of foreclosed assets held for sale for our Centennial CFG Property Finance Group consists of an office building located in California. This represents the largest component of the Company's $39.7 million in foreclosed assets held for sale.
Reworded paragraphs (68)
Previous wording
We are a bank holding company headquartered in Conway, Arkansas, offering a broad array of financial services through our wholly-owned bank subsidiary, Centennial Bank (sometimes referred to as “Centennial” or the “Bank”). As of March 31, 2025, we had, on a consolidated basis, total assets of $22.99 billion, loans receivable, net of allowance for credit losses of $14.67 billion, total deposits of $17.54 billion, and stockholders’ equity of $4.04 billion.
Current wording
We are a bank holding company headquartered in Conway, Arkansas, offering a broad array of financial services through our wholly-owned bank subsidiary, Centennial Bank (sometimes referred to as "Centennial" or the "Bank"). As of June 30, 2025, we had, on a consolidated basis, total assets of $22.91 billion, loans receivable, net of allowance for credit losses, of $14.90 billion, total deposits of $17.49 billion, and stockholders’ equity of $4.09 billion.
Previous wording
Our net interest margin increased from 4.13% for the three-month period ended March 31, 2024 to 4.44% for the three-month period ended March 31, 2025. The yield on interest earning assets was 6.45% and 6.38% for the three months ended March 31, 2025 and 2024, respectively, and average interest earning assets decreased from $20.03 billion to $19.83 billion. The decrease in average interest earning assets is primarily due to a $189.5 million decrease in average interest-bearing balances due from banks and a $416.3 million decrease in average investment securities, partially offset by a $406.4 million increase in average loans receivable. During the first quarter of 2024, the Company held excess liquidity of approximately $500.0 million, primarily related to the Bank Term Funding Program ("BTFP") advance, which was dilutive to the net interest margin by approximately 10 basis points. The Company paid off the advance in November 2024. For the three months ended March 31, 2025 and 2024, we recognized $1.4 million and $2.8 million, respectively, in total net accretion for acquired loans and deposits. The reduction in accretion was dilutive to the net interest margin by three basis points. We recognized $1.3 million in event income for the three-months ended March 31, 2025 compared to $1.1 million for the three-months ended March 31, 2024. The overall increase in the net interest margin was due to a decrease in interest expense resulting from a decrease in interest rates paid on interest-bearing liabilities and a decrease in the average balance of interest-bearing liabilities.
Current wording
Our net interest margin increased from 4.27% for the three-month period ended June 30, 2024 to 4.44% for the three-month period ended June 30, 2025. The yield on interest earning assets was 6.42% and 6.56% for the three months ended June 30, 2025 and 2024, respectively, and average interest earning assets decreased from $20.21 billion to $20.08 billion. The decrease in average interest earning assets is primarily due to a $116.1 million decrease in average interest-bearing balances due from banks and a $422.0 million decrease in average investment securities, partially offset by a $406.9 million increase in average loans receivable. For the three months ended June 30, 2025 and 2024, we recognized $1.2 million and $1.9 million, respectively, in total net accretion for acquired loans and deposits. We recognized $516,000 in event income for the three-months ended June 30, 2025 compared to $1.7 million for the three-months ended June 30, 2024. The reduction in accretion was dilutive to the net interest margin by three basis points. The cost of interest bearing liabilities decreased from 3.15% for the three-months ended June 30, 2024 to 2.73% for the three-months ended June 30, 2025, and average interest-bearing liabilities decreased from $14.75 billion to $14.58 billion. The decrease in average interest-bearing liabilities is primarily due to a $734.1 million decrease in FHLB and other borrowed funds, which was partially offset by a $576.6 million increase in average interest-bearing deposits. During the second quarter of 2024, the Company held excess liquidity of approximately $500.0 million, primarily related to the Bank Term Funding Program ("BTFP") advance, which was dilutive to the net interest margin by approximately 10 basis points. The Company paid off the advance in November 2024. The overall increase in the net interest margin was due to a decrease in interest expense resulting from a decrease in interest rates paid on interest-bearing liabilities, a decrease in the average balance of interest-bearing liabilities and an increase the average balance of interest-earning assets, which was partially offset by a decrease in interest income due to a reduction in asset yields.
Previous wording
Our efficiency ratio was 42.22% for the three months ended March 31, 2025, compared to 44.22% for the same period in 2024. For the first quarter of 2025, our efficiency ratio, as adjusted (non-GAAP), was 42.84%, compared to 44.43% reported for the first quarter of 2024. (See Table 29 for the non-GAAP tabular reconciliation).
Current wording
Our efficiency ratio was 41.68% for the three months ended June 30, 2025, compared to 43.17% for the same period in 2024. For the second quarter of 2025, our efficiency ratio, as adjusted (non-GAAP), was 42.01%, compared to 42.59% reported for the second quarter of 2024. (See Table 29 for the non-GAAP tabular reconciliation).
Previous wording
Our annualized return on average assets was 2.07% for the three months ended March 31, 2025, compared to 1.78% for the same period in 2024. (See Table 26 for the related non-GAAP financial measures and tabular reconciliation). Our annualized return on average common equity was 11.75% and 10.64% for the three months ended March 31, 2025, and 2024, respectively. (See Table 27 for the related non-GAAP financial measures and tabular reconciliation).
Current wording
Our annualized return on average assets was 2.08% for the three months ended June 30, 2025, compared to 1.79% for the same period in 2024. (See Table 26 for the related non-GAAP financial measures and tabular reconciliation). Our annualized return on average common equity was 11.77% and 10.73% for the three months ended June 30, 2025, and 2024, respectively. (See Table 27 for the related non-GAAP financial measures and tabular reconciliation).
Previous wording
Total interest expense decreased $14.4 million, or 12.9%, and non-interest income increased $3.6 million, or 8.7%. This was partially offset by a $4.4 million, or 1.4%, decrease in total interest income and a $1.4 million, or 1.3%, increase in non-interest expense. The decrease in interest expense was primarily due to an $8.4 million, or 58.7%, decrease in interest on FHLB and other borrowed funds and a $5.8 million, or 6.2%, decrease in interest on deposits. The increase in non-interest income was primarily due to a $4.1 million, or 55.0%, increase in other income. Included within other income was the $3.9 million in special income from equity investments. The decrease in interest income resulted from a $5.9 million, or 14.5%, decrease in investment interest income and a $3.9 million, or 37.1%, decrease in interest income on deposits at other banks, which was partially offset by a $5.5 million, or 2.1%, increase in loan interest income. The increase in non-interest expense was primarily due to an increase of $1.2 million, or 4.5%, in other operating expenses and a $945,000, or 1.6%, increase in salaries and employee benefits expense, partially offset by a $589,000, or 6.4%, decrease in data processing expense.
Current wording
Total interest expense decreased $30.8 million, or 13.5%, and non-interest income increased $11.9 million, or 14.1%. This was partially offset by a $12.6 million, or 1.9%, decrease in total interest income and a $4.3 million, or 1.9%, increase in non-interest expense. The decrease in interest expense was primarily due to an $17.1 million, or 59.9%, decrease in interest on FHLB and other borrowed funds and a $13.0 million, or 6.9%, decrease in interest on deposits. The increase in non-interest income was primarily due to a $10.9 million, or 77.4%, increase in other income. Included within other income was the $7.4 million in special income from equity investments. The decrease in interest income resulted from a $12.2 million, or 15.0%, decrease in investment interest income and a $7.5 million, or 32.6%, decrease in interest income on deposits at other banks, which was partially offset by a $7.2 million, or 1.3%, increase in loan interest income. The increase in non-interest expense was primarily due to a $4.8 million, or 4.0%, increase in salaries and employee benefits expense and a $1.1 million, or 2.0%, increase in other operating expenses, which was partially offset by a $1.2 million, or 6.4%, decrease in data processing expense.
Previous wording
Our total assets as of March 31, 2025 increased $501.5 million to $22.99 billion from $22.49 billion reported as of December 31, 2024. Cash and cash equivalents increased $385.4 million for the three months ended March 31, 2025. Our loan portfolio balance increased to $14.95 billion as of March 31, 2025 from $14.76 billion at December 31, 2024. The increase in loans was primarily due to $291.5 million of organic loan growth in our community banking footprint partially offset by a $103.9 million of organic loan decline from our Centennial Commercial Finance Group ("Centennial CFG") franchise. These increases were partially offset by a $74.6 million decrease in investment securities resulting from paydowns and maturities during the first three months of 2025. Total deposits increased $395.2 million to $17.54 billion as of March 31, 2025 from $17.15 billion as of December 31, 2024. Stockholders’ equity increased $81.5 million to $4.04 billion as of March 31, 2025, compared to $3.96 billion as of December 31, 2024. The $81.5 million increase in stockholders’ equity is primarily associated with the $115.2 million in net income and $31.6 million in other comprehensive income for the three months ended March 31, 2025, which was partially offset by the $38.8 million of shareholder dividends paid and stock repurchases of $29.7 million.
Current wording
Our total assets as of June 30, 2025 increased $416.3 million to $22.91 billion from $22.49 billion reported as of December 31, 2024. Cash and cash equivalents increased $190.7 million for the six months ended June 30, 2025. Our loan portfolio balance increased to $15.18 billion as of June 30, 2025 from $14.76 billion at December 31, 2024. The increase in loans was primarily due to $398.3 million of organic loan growth in our community banking footprint and $17.8 million of organic loan growth from our Centennial Commercial Finance Group ("Centennial CFG") franchise. These increases were partially offset by a $182.6 million decrease in investment securities resulting from paydowns and maturities during the first six months of 2025. Total deposits increased $342.1 million to $17.49 billion as of June 30, 2025 from $17.15 billion as of December 31, 2024. Stockholders’ equity increased $124.3 million to $4.09 billion as of June 30, 2025, compared to $3.96 billion as of December 31, 2024. The $124.3 million increase in stockholders’ equity is primarily associated with the $233.6 million in net income and $20.2 million in other comprehensive income for the six months ended June 30, 2025, which was partially offset by the $78.3 million in shareholder dividends paid and stock repurchases of $57.3 million.
Previous wording
Our non-performing loans were $89.6 million, or 0.60% of total loans as of March 31, 2025, compared to $98.9 million, or 0.67% of total loans, as of December 31, 2024. The allowance for credit losses as a percentage of non-performing loans increased to 312.27% as of March 31, 2025, from 278.99% as of December 31, 2024. As of March 31, 2025, our non-performing assets decreased to $129.4 million, or 0.56% of total assets, from $142.4 million, or 0.63% of total assets, as of December 31, 2024.
Current wording
Our non-performing loans were $96.3 million, or 0.63% of total loans as of June 30, 2025, compared to $98.9 million, or 0.67% of total loans, as of December 31, 2024. The allowance for credit losses as a percentage of non-performing loans increased to 292.72% as of June 30, 2025, from 278.99% as of December 31, 2024. As of June 30, 2025, our non-performing assets decreased to $137.8 million, or 0.60% of total assets, from $142.4 million, or 0.63% of total assets, as of December 31, 2024.
Previous wording
•Secured by farmland (including farm residential and other improvements)
Current wording
•Loans secured by farmland (including farm residential and other improvements)
Previous wording
Net interest income on a fully taxable equivalent basis increased $11.7 million, or 5.7%, to $217.2 million for the three-month period ended March 31, 2025, from $205.5 million for the same period in 2024. This increase in net interest income for the three-month period ended March 31, 2025 was the result of a $14.4 million decrease in interest expense, which was partially offset by a $2.7 million decrease in interest income, on a fully taxable equivalent basis. The $14.4 million decrease in interest expense is primarily the result of the lower interest rate environment. The lower rates on interest bearing liabilities resulted in a decrease in interest expense of approximately $10.9 million, in addition to a decrease in average interest bearing liabilities which decreased interest expense by approximately $3.6 million. The $2.7 million decrease in interest income was also primarily the result of the lower interest rate environment. The lower yield on earning assets resulted in a decrease in interest income of approximately $4.3 million, which was partially offset by an increase of $1.6 million in interest income due to the change in average interest earning asset balances.
Current wording
Net interest income on a fully taxable equivalent basis increased $8.0 million, or 3.7%, to $222.5 million for the three-month period ended June 30, 2025, from $214.5 million for the same period in 2024. This increase in net interest income for the three-month period ended June 30, 2025 was the result of a $16.3 million decrease in interest expense, which was partially offset by an $8.3 million decrease in interest income, on a fully taxable equivalent basis. The $16.3 million decrease in interest expense is primarily the result of the lower interest rate environment. The lower rates on interest bearing liabilities resulted in a decrease in interest expense of approximately $13.3 million, in addition to a decrease in average interest bearing liabilities which reduced interest expense by approximately $3.1 million. The $8.3 million decrease in interest income was also primarily the result of the lower interest rate environment. The lower yield on earning assets resulted in a decrease in interest income of approximately $10.6 million, which was partially offset by an increase of $2.3 million in interest income due to the change in average interest earning asset balances.
Previous wording
Tables 2 and 3 reflect an analysis of net interest income on a fully taxable equivalent basis for the three months ended March 31, 2025 and 2024, as well as changes in the fully taxable equivalent net interest margin for the three months ended March 31, 2025 compared to the same period in 2024.
Current wording
Tables 2 and 3 reflect an analysis of net interest income on a fully taxable equivalent basis for the three and six months ended June 30, 2025 and 2024, as well as changes in the fully taxable equivalent net interest margin for the three and six months ended June 30, 2025 compared to the same period in 2024.
Previous wording
Table 4 shows, for each major category of earning assets and interest-bearing liabilities, the average amount outstanding, the interest income or expense on that amount and the average rate earned or expensed for the three months ended March 31, 2025 and 2024, respectively. The table also shows the average rate earned on all earning assets, the average rate expensed on all interest-bearing liabilities, the net interest spread and the net interest margin for the same periods. The analysis is presented on a fully taxable equivalent basis. Non-accrual loans were included in average loans for the purpose of calculating the rate earned on total loans.
Current wording
Table 4 shows, for each major category of earning assets and interest-bearing liabilities, the average amount outstanding, the interest income or expense on that amount and the average rate earned or expensed for the three and six months ended June 30, 2025 and 2024, respectively. The table also shows the average rate earned on all earning assets, the average rate expensed on all interest-bearing liabilities, the net interest spread and the net interest margin for the same periods. The analysis is presented on a fully taxable equivalent basis. Non-accrual loans were included in average loans for the purpose of calculating the rate earned on total loans.
Previous wording
Table 5 shows changes in interest income and interest expense resulting from changes in volume and changes in interest rates for the three months ended March 31, 2025 compared to the same period in 2024, on a fully taxable basis. The changes in interest rate and volume have been allocated to changes in average volume and changes in average rates, in proportion to the relationship of absolute dollar amounts of the changes in rates and volume.
Current wording
Table 5 shows changes in interest income and interest expense resulting from changes in volume and changes in interest rates for the three and six months ended June 30, 2025 compared to the same period in 2024, on a fully taxable basis. The changes in interest rate and volume have been allocated to changes in average volume and changes in average rates, in proportion to the relationship of absolute dollar amounts of the changes in rates and volume.
Previous wording
Credit Loss Expense: During the three months ended March 31, 2025, the Company did not record a provision for credit losses on loans primarily due to the $4.1 million in net recoveries experienced during the quarter. After considering the recoveries, management determined the level of the allowance for credit losses on loans was adequate. In addition, management determined that a provision was not necessary for the unfunded commitments as the current level of the reserve was considered adequate.
Current wording
Credit Loss Expense: During the three and six months ended June 30, 2025, the Company recorded $3.0 million in provision for credit losses on loans. In addition, management determined that a provision was not necessary for the unfunded commitments as the current level of the reserve was considered adequate. During the three and six months ended June 30, 2024, the Company recorded $8.0 million and $13.5 million in provision for credit losses on loans, respectively. In addition, during the six months ended June 30, 2024, the Company recovered $1.0 million in provision for unfunded commitments.
Previous wording
During the three months ended March 31, 2025, the Company determined the $2.2 million allowance for credit losses on the available-for-sale portfolio and the $2.0 million allowance for credit losses on the held-to-maturity portfolio was adequate. Therefore, no additional provision was considered necessary.
Current wording
During the three and six months ended June 30, 2025, the Company determined the $2.2 million allowance for credit losses on the available for sale portfolio and the $2.0 million allowance for credit losses on the held-to-maturity portfolio was adequate. Therefore, no additional provision was considered necessary. In addition, during the three and six months ended June, 30, 2024, the Company determined the $2.5 million allowance for credit losses on the AFS portfolio and the $2.0 million allowance for credit losses on the HTM portfolio were adequate. Therefore, no additional provision was considered necessary.
Previous wording
Net (recoveries) charge-offs to average total loans was (0.11)% and 0.10% for the three months ended March 31, 2025 and 2024, respectively.
Current wording
Net charge-offs to average total loans were 0.03% and 0.07% for the three months ended June 30, 2025 and 2024, respectively. Net (recoveries) charge-offs to average total loans were (0.04)% and 0.08% for the six months ended June 30, 2025 and 2024, respectively.
Previous wording
Total non-interest income was $45.4 million for the three months ended March 31, 2025, compared to $41.8 million for the same period in 2024. Our recurring non-interest income includes service charges on deposit accounts, other service charges and fees, trust fees, mortgage lending income, insurance commissions, increase in cash value of life insurance, fair value adjustment for marketable securities and dividends.
Current wording
Total non-interest income was $51.1 million and $96.5 million for the three and six months ended June 30, 2025, compared to $42.8 million and $84.6 million for the same period in 2024. Our recurring non-interest income includes service charges on deposit accounts, other service charges and fees, trust fees, mortgage lending income, insurance commissions, increase in cash value of life insurance, fair value adjustment for marketable securities and dividends.
Previous wording
Table 6 measures the various components of our non-interest income for the three months ended March 31, 2025 and 2024.
Current wording
Table 6 measures the various components of our non-interest income for the three and six months ended June 30, 2025 and 2024.
Previous wording
•The $500,000 increase in other service charges and fees is primarily related to an increase in Centennial CFG property finance loan fees.
Current wording
•The $2.0 million increase in other service charges and fees is primarily related to an increase in Centennial CFG property finance loan fees.
Previous wording
•The $4.1 million increase in other income is primarily due to a $4.1 million increase in fair value of equity securities, which includes $3.9 million in special income from equity investments and a $724,000 increase in loan recoveries on items charged off prior to acquisition, partially offset by a $554,000 decrease in miscellaneous income.
Current wording
•The $6.8 million increase in other income is primarily due to a $3.4 million increase in fair value of equity securities, which includes $3.5 million in special income from equity investments during the second quarter of 2025, a $1.2 million increase in BOLI death benefit income, a $1.1 million increase in miscellaneous income and a $599,000 increase in recoveries on historic losses.
Previous wording
Non-interest income increased $3.6 million, or 8.7%, to $45.4 million for the three months ended March 31, 2025 from $41.8 million for the same period in 2024. The primary factors that resulted in this increase were the increases in other service charges and fees, cash value of life insurance and other income, which was partially offset by the decrease in fair value adjustment for marketable securities.
Current wording
Non-interest income increased $11.9 million, or 14.1%, to $96.5 million for the six months ended June 30, 2025 from $84.6 million for the same period in 2024. The primary factors in this increase were the increases in other service charges and fees, mortgage lending income, cash value of life insurance and other income, which were partially offset by decreases in dividends from FHLB, FRB, FNBB & other, gain on sale of branches, equipment and other assets, net and fair value adjustment for marketable securities.
Previous wording
•The $647,000 increase in the cash value of life insurance is primarily related to enhancement charges related to a 1035 exchange in BOLI policies.
Current wording
•The $783,000 increase in the cash value of life insurance is primarily related to enhancement charges related to a 1035 exchange in BOLI policies.
Previous wording
•The $561,000 decrease in the fair value adjustment for marketable securities is due to market fluctuations.
Current wording
•The $525,000 decrease in the fair value adjustment for marketable securities is due to market fluctuations.
Previous wording
Table 7 below sets forth a summary of non-interest expense for the three months ended March 31, 2025 and 2024.
Current wording
Table 7 below sets forth a summary of non-interest expense for the three and six months ended June 30, 2025 and 2024.
Previous wording
Non-interest expense increased $1.4 million, or 1.3%, to $112.9 million for the three months ended March 31, 2025 from $111.5 million for the same period in 2024. The primary factors that resulted in this increase were the increases in salaries and employee benefits and legal and accounting expense, which were partially offset by the decrease in data processing expense.
Current wording
Non-interest expense increased $2.9 million, or 2.5%, to $116.0 million for the three months ended June 30, 2025 from $113.2 million for the same period in 2024. The primary factors that resulted in this increase were the increases in salaries and employee benefits and other expense, which were partially offset by the decreases in data processing expense and FDIC and state assessment expense.
Previous wording
•The $589,000 decrease in data processing expense is primarily due to relationship credits received as a result of a new contract.
Current wording
•The $571,000 decrease in data processing expense is primarily due to relationship credits received as a result of a new contract.
Previous wording
•The $1.6 million increase in legal and accounting expense is primarily due to ongoing legal matters.
Current wording
•The $1.3 million increase in legal and accounting expense is primarily due to ongoing legal matters.
Previous wording
Income tax expense increased $1.7 million, or 5.5%, to $31.9 million for the three-month period ended March 31, 2025, from $30.3 million for the same period in 2024. The effective income tax rate was 21.71% for the three months ended March 31, 2025, compared to 23.22% for the same period in 2024. The marginal tax rate was 24.433% and 24.989% for 2025 and 2024, respectively.
Current wording
Income tax expense increased $1.7 million, or 5.4%, to $33.6 million for the three-month period ended June 30, 2025, from $31.9 million for the same period in 2024. Income tax expense increased $3.4 million, or 5.4%, to $65.5 million for the six-month period ended June 30, 2025, from $62.2 million for the same period in 2024. The effective income tax rate was 22.10% and 21.91% for the three and six months ended June 30, 2025, compared to 23.90% and 23.56% for the same period in 2024. The marginal tax rate was 24.433% and 24.989% for 2025 and 2024, respectively.
Previous wording
Our total assets as of March 31, 2025 increased $501.5 million to $22.99 billion from $22.49 billion reported as of December 31, 2024. Cash and cash equivalents increased $385.4 million for the three months ended March 31, 2025. Our loan portfolio balance increased to $14.95 billion as of March 31, 2025 from $14.76 billion at December 31, 2024. The increase in loans was primarily due to $291.5 million of organic loan growth in our community banking footprint partially offset by a $103.9 million of organic loan decline from our Centennial CFG franchise. These increases were partially offset by a $74.6 million decrease in investment securities resulting from paydowns and maturities during the first three months of 2025. Total deposits increased $395.2 million to $17.54 billion as of March 31, 2025 from $17.15 billion as of December 31, 2024. Stockholders’ equity increased $81.5 million to $4.04 billion as of March 31, 2025, compared to $3.96 billion as of December 31, 2024. The $81.5 million increase in stockholders’ equity is primarily associated with the $115.2 million in net income and $31.6 million in other comprehensive income for the three months ended March 31, 2025, which was partially offset by the $38.8 million of shareholder dividends paid and stock repurchases of $29.7 million.
Current wording
Our total assets as of June 30, 2025 increased $416.3 million to $22.91 billion from $22.49 billion reported as of December 31, 2024. Cash and cash equivalents increased $190.7 million for the six months ended June 30, 2025. Our loan portfolio balance increased to $15.18 billion as of June 30, 2025 from $14.76 billion at December 31, 2024. The increase in loans was primarily due to $398.3 million of organic loan growth in our community banking footprint and $17.8 million of organic loan growth from our Centennial Commercial Finance Group ("Centennial CFG") franchise. These increases were partially offset by a $182.6 million decrease in investment securities resulting from paydowns and maturities during the first six months of 2025. Total deposits increased $342.1 million to $17.49 billion as of June 30, 2025 from $17.15 billion as of December 31, 2024. Stockholders’ equity increased $124.3 million to $4.09 billion as of June 30, 2025, compared to $3.96 billion as of December 31, 2024. The $124.3 million increase in stockholders’ equity is primarily associated with the $233.6 million in net income and $20.2 million in other comprehensive income for the six months ended June 30, 2025, which was partially offset by the $78.3 million in shareholder dividends paid and stock repurchases of $57.3 million.
Previous wording
Our loan portfolio averaged $14.89 billion and $14.49 billion during the three months ended March 31, 2025 and 2024, respectively. Loans receivable were $14.95 billion and $14.76 billion as of March 31, 2025 and December 31, 2024, respectively.
Current wording
Our loan portfolio averaged $15.06 billion and $14.65 billion during the three months ended June 30, 2025 and 2024, respectively. Our loan portfolio averaged $14.98 billion and $14.57 billion during the six months ended June 30, 2025 and 2024, respectively. Loans receivable were $15.18 billion and $14.76 billion as of June 30, 2025 and December 31, 2024, respectively.
Previous wording
From December 31, 2024 to March 31, 2025, the Company experienced an increase of approximately $187.6 million in loans. The increase in loans was primarily due to $291.5 million of organic loan growth in our community banking footprint and $103.9 million of organic loan decline from our Centennial CFG franchise.
Current wording
From December 31, 2024 to June 30, 2025, the Company experienced an increase of approximately $416.1 million in loans. The increase in loans was due to $398.3 million of organic loan growth in our community banking footprint and $17.8 million of organic loan growth from our Centennial CFG franchise.
Previous wording
The most significant components of the loan portfolio were commercial real estate, residential real estate, consumer and commercial and industrial loans. These loans are generally secured by residential or commercial real estate or business or personal property. Although these loans are primarily originated within our franchises in Arkansas, Florida, Texas, Alabama and Centennial CFG, the property securing these loans may not physically be located within our market areas of Arkansas, Florida, Texas, Alabama and New York. Loans receivable were approximately $3.58 billion, $4.27 billion, $3.92 billion, $115.7 million, $1.35 billion and $1.71 billion as of March 31, 2025 in Arkansas, Florida, Texas, Alabama, SPF and Centennial CFG, respectively.
Current wording
The most significant components of the loan portfolio were commercial real estate, residential real estate, consumer and commercial and industrial loans. These loans are generally secured by residential or commercial real estate or business or personal property. Although these loans are primarily originated within our franchises in Arkansas, Florida, Texas, Alabama and Centennial CFG, the property securing these loans may not physically be located within our market areas of Arkansas, Florida, Texas, Alabama and New York. Loans receivable were approximately $3.66 billion, $4.31 billion, $3.92 billion, $107.3 million, $1.35 billion and $1.83 billion as of June 30, 2025 in Arkansas, Florida, Texas, Alabama, SPF and Centennial CFG, respectively.
Previous wording
As of March 31, 2025, we had approximately $1.20 billion of construction/land development loans which were collateralized by land. This consisted of approximately $85.5 million for raw land and approximately $1.11 billion for land with commercial and/or residential lots.
Current wording
As of June 30, 2025, we had approximately $1.10 billion of construction/land development loans which were collateralized by land. This consisted of approximately $79.7 million for raw land and approximately $1.02 billion for land with commercial and/or residential lots.
Previous wording
As of March 31, 2025, commercial real estate ("CRE") loans totaled $8.66 billion, or 57.9%, of loans receivable, as compared to $8.50 billion, or 57.6%, of loans receivable, as of December 31, 2024. CRE loans originated in our Arkansas, Florida, Texas, Alabama, SPF and Centennial CFG markets were $2.30 billion, $2.70 billion, $2.20 billion, $48.0 million, zero and $1.41 billion at March 31, 2025, respectively.
Current wording
As of June 30, 2025, commercial real estate ("CRE") loans totaled $8.56 billion, or 56.4%, of loans receivable, as compared to $8.50 billion, or 57.6%, of loans receivable, as of December 31, 2024. CRE loans originated in our Arkansas, Florida, Texas, Alabama, SPF and Centennial CFG markets were $2.35 billion, $2.53 billion, $2.19 billion, $45.7 million, zero and $1.44 billion at June 30, 2025, respectively.
Previous wording
(2) Excludes multi-family residential loans of $576.1 million and $496.5 million as of March 31, 2025 and December 31, 2024, respectively, which are included in the residential real estate loans throughout the filing. Multi-family residential loans are included in CRE for regulatory purposes.
Current wording
(2) Excludes multi-family residential loans of $620.4 million and $496.5 million as of June 30, 2025 and December 31, 2024, respectively, which are included in the residential real estate loans throughout the filing. Multi-family residential loans are included in CRE for regulatory purposes.
Previous wording
(2) Excludes multi-family residential loans of $576.1 million and $496.5 million as of March 31, 2025 and December 31, 2024, respectively, which are included in the residential real estate loans throughout the filing. Multi-family residential loans are included in CRE for regulatory purposes.
Current wording
(2) Excludes multi-family residential loans of $620.4 million and $496.5 million as of June 30, 2025 and December 31, 2024, respectively, which are included in the residential real estate loans throughout the filing. Multi-family residential loans are included in CRE for regulatory purposes.
Previous wording
Residential Real Estate Loans. We originate one to four family, residential mortgage loans generally secured by property located in our primary market areas. Approximately 58.6% and 34.6% of our residential mortgage loans consist of owner occupied 1-4 family properties and non-owner occupied 1-4 family properties (rental), respectively, as of March 31, 2025, with the remaining 6.8% relating to condominiums and mobile homes. Residential real estate loans generally have a loan-to-value ratio of up to 90%. These loans are underwritten by giving consideration to the borrower’s ability to pay, stability of employment or source of income, debt-to-income ratio, credit history and loan-to-value ratio.
Current wording
Residential Real Estate Loans. We originate one to four family, residential mortgage loans generally secured by property located in our primary market areas. Approximately 55.5% and 37.6% of our residential mortgage loans consist of owner occupied 1-4 family properties and non-owner occupied 1-4 family properties (rental), respectively, as of June 30, 2025, with the remaining 6.9% relating to condominiums and mobile homes. Residential real estate loans generally have a loan-to-value ratio of up to 90%. These loans are underwritten by giving consideration to the borrower’s ability to pay, stability of employment or source of income, debt-to-income ratio, credit history and loan-to-value ratio.
Previous wording
As of March 31, 2025, residential real estate loans totaled $2.52 billion, or 16.9%, of loans receivable, compared to $2.45 billion, or 16.6%, of loans receivable, as of December 31, 2024. Residential real estate loans originated in our Arkansas, Florida, Texas, Alabama, SPF and Centennial CFG markets were $564.1 million, $1.05 billion, $648.3 million, $39.9 million, zero and $224.4 million at March 31, 2025, respectively.
Current wording
As of June 30, 2025, residential real estate loans totaled $2.76 billion, or 18.2%, of loans receivable, compared to $2.45 billion, or 16.6%, of loans receivable, as of December 31, 2024. Residential real estate loans originated in our Arkansas, Florida, Texas, Alabama, SPF and Centennial CFG markets were $600.4 million, $1.23 billion, $672.8 million, $39.2 million, zero and $214.4 million at June 30, 2025, respectively.
Previous wording
As of March 31, 2025, consumer loans totaled $1.23 billion, or 8.2%, of loans receivable, compared to $1.23 billion, or 8.4%, of loans receivable, as of December 31, 2024. Consumer loans originated in our Arkansas, Florida, Texas, Alabama, SPF and Centennial CFG markets were $20.1 million, $6.6 million, $9.6 million, $450,000, $1.19 billion and zero at March 31, 2025, respectively.
Current wording
As of June 30, 2025, consumer loans totaled $1.22 billion, or 8.0%, of loans receivable, compared to $1.23 billion, or 8.4%, of loans receivable, as of December 31, 2024. Consumer loans originated in our Arkansas, Florida, Texas, Alabama, SPF and Centennial CFG markets were $20.1 million, $6.3 million, $8.3 million, $448,000, $1.18 billion and zero at June 30, 2025, respectively.
Previous wording
As of March 31, 2025, commercial and industrial loans totaled $2.05 billion, or 13.7%, of loans receivable, compared to $2.02 billion, or 13.7%, of loans receivable, as of December 31, 2024. Commercial and industrial loans originated in our Arkansas, Florida, Texas, Alabama, SPF and Centennial CFG markets were $489.7 million, $481.8 million, $814.2 million, $23.1 million, $159.6 million and $76.8 million at March 31, 2025, respectively.
Current wording
As of June 30, 2025, commercial and industrial loans totaled $2.11 billion, or 13.9%, of loans receivable, compared to $2.02 billion, or 13.7%, of loans receivable, as of December 31, 2024. Commercial and industrial loans originated in our Arkansas, Florida, Texas, Alabama, SPF and Centennial CFG markets were $478.7 million, $502.8 million, $795.6 million, $21.6 million, $160.8 million and $147.9 million at June 30, 2025, respectively.
Previous wording
Purchased loans that have experienced more than insignificant credit deterioration since origination are PCD loans. An allowance for credit losses is determined using the same methodology as other loans. The Company develops separate PCD models for each loan segment with PCD loans not individually analyzed for credit losses. The sum of the loan’s purchase price and allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a non-credit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the allowance for credit losses are recorded through the provision for credit losses. The Company held approximately $72.1 million and $76.3 million in PCD loans, as of March 31, 2025 and December 31, 2024, respectively.
Current wording
Purchased loans that have experienced more than insignificant credit deterioration since origination are PCD loans. An allowance for credit losses is determined using the same methodology as other loans. The Company develops separate PCD models for each loan segment with PCD loans not individually analyzed for credit losses. The sum of the loan’s purchase price and allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a non-credit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the allowance for credit losses are recorded through the provision for credit losses. The Company held approximately $55.2 million and $76.3 million in PCD loans, as of June 30, 2025 and December 31, 2024, respectively.
Showing the first 40 of 68 pairs. Open the source sections for the rest.
Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
Results of Operations for the Six Months Ended June 30, 2025 and 2024
Current report — wording carried from elsewhere
Our annualized return on average assets was 2.08% for the six months ended June 30, 2025, compared to 1.78% for the same period in 2024. (See Table 26 for the related non-GAAP financial measures and tabular reconciliation). Our annualized return on average common equity was 11.76% and 10.69% for the six months ended June 30, 2025, and 2024, respectively. (See Table 27 for the related non-GAAP financial measures and tabular reconciliation).
Current report — wording carried from elsewhere
Net interest income on a fully taxable equivalent basis increased $19.7 million, or 4.7%, to $439.7 million for the six-month period ended June 30, 2025, from $419.9 million for the same period in 2024. This increase in net interest income for the six-month period ended June 30, 2025 was the result of a $30.8 million decrease in interest expense, which was partially offset by an $11.0 million decrease in interest income, on a fully taxable equivalent basis. The $30.8 million decrease in interest expense is primarily the result of the lower interest rate environment. The lower rates on interest bearing liabilities resulted in a decrease in interest expense of approximately $24.1 million, in addition to a decrease in average interest bearing liabilities which reduced interest expense by approximately $6.6 million. The $11.0 million decrease in interest income was also primarily the result of the lower interest rate environment. The lower yield on earning assets resulted in a decrease in interest income of approximately $14.9 million, which was partially offset by an increase of $3.8 million in interest income due to the change in average interest earning asset balances.
Current report — wording carried from elsewhere
•The $2.5 million increase in other service charges and fees is primarily related to an increase in Centennial CFG property finance loan fees.
Current report — wording carried from elsewhere
•The $1.2 million decrease in data processing expense is primarily due to relationship credits received as a result of a new contract.
Current report — wording carried from elsewhere
The Company’s FHLB borrowed funds, which are secured by our loan portfolio, were $550.0 million and $600.0 million at June 30, 2025 and December 31, 2024, respectively. At June 30, 2025, $100.0 million and $450.0 million of the outstanding balances were classified as short-term and long-term advances, respectively. At December 31, 2024, $100.0 million and $500.0 million of the outstanding balances were classified as short-term and long-term advances, respectively.