HOME BANCSHARES INC
For the period ended Sep 30, 2025. Filed Nov 4, 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.
Sep 30, 2025 · Filed Nov 4, 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 2025-06-30; filed 2025-08-05.
0001331520-25-000135
Item 2. : Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-04.
0001331520-25-000148
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 262 previous paragraphs and 260 current paragraphs.
158 unchanged; 83 reworded; 18 added; 14 removed; 7 previous and 1 current paragraphs rearranged.
Tables are not compared: 37 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 (18)
Current report
Our net income increased $23.6 million, or 23.6%, to $123.6 million for the three-month period ended September 30, 2025, from $100.0 million for the same period in 2024. On a diluted earnings per share basis, our earnings were $0.63 per share for the three-month period ended September 30, 2025 compared to $0.50 per share for the three-month period ended September 30, 2024. During the three months ended September 30, 2025, the Company recorded $6.7 million in provision for credit losses on loans. In addition, the Company recorded a $1.0 million recovery of credit losses on unfunded commitments. The Company also recorded a $2.2 million recovery of credit losses on investment securities. As a result, total credit loss expense for the three-month period ended September 30, 2025 was $3.5 million. During the three months ended September 30, 2025, the Company recorded $2.0 million in recoveries on historic losses, a $1.9 million gain on the retirement of subordinated debt, a $1.0 million increase in the fair value of marketable securities and $187,000 in bank owned life insurance ("BOLI") death benefits.
Current report
Our net interest margin increased from 4.28% for the three-month period ended September 30, 2024 to 4.56% for the three-month period ended September 30, 2025. The yield on interest earning assets decreased from 6.60% for the three-months ended September 30, 2025 to 6.49% for the three-months ended September 30, 2024, and average interest earning assets decreased from $20.23 billion to $19.94 billion. The decrease in average interest earning assets is primarily due to a $400.3 million decrease in average investment securities and a $335.8 million decrease in average interest-bearing balances due from banks, partially offset by a $453.8 million increase in average loans receivable. For the three months ended September 30, 2025 and 2024, we recognized $1.3 million and $1.9 million, respectively, in total net accretion for acquired loans and deposits. The reduction in accretion was dilutive to the net interest margin by one basis point. We recognized $1.5 million in event income for the three-months ended September 30, 2025 compared to $573,000 for the three-months ended September 30, 2024. The increase in accretion was accretive to the net interest margin by two basis points. The cost of interest bearing liabilities decreased from 3.17% for the three-months ended September 30, 2024 to 2.69% for the three-months ended September 30, 2025, and average interest-bearing liabilities decreased from $14.76 billion to $14.36 billion. The decrease in average interest-bearing liabilities is primarily due to a $750.4 million decrease in FHLB and other borrowed funds and a $100.7 million decrease in average subordinated debentures, which was partially offset by a $454.5 million increase in average interest-bearing deposits. The reduction in FHLB borrowed funds was due to the Company paying off its Bank Term Funding Program ("BTFP") advance in November 2024. During the third 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 reduction in subordinated debentures was due to the Company completing the payoff of its $140.0 million 5.50% Fixed-to-Floating Rate Subordinated Notes due 2030 and the Company also repurchasing $20.0 million of its $300.0 million Fixed-to-Floating Rate Subordinated Notes due 2032 during the third quarter of 2025. The two payoff events were accretive to the net interest margin by approximately three basis points. 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 interest expense resulting from a reduction in the average balance of interest-bearing liabilities and an increase in interest income resulting from the increase in the average balance of interest-earning assets which was partially offset by a decrease in interest income due to a reduction in asset…
Excerpt shortened here; the source contains the full paragraph.
Current report
Our net income increased $55.5 million, or 18.4%, to $357.2 million for the nine-month period ended September 30, 2025, from $301.7 million for the same period in 2024. On a diluted earnings per share basis, our earnings were $1.80 per share for the nine-month period ended September 30, 2025 compared to $1.51 per share for the nine-month period ended September 30, 2024. During the nine months ended September 30, 2025, the Company recorded $9.7 million in provision for credit losses on loans. In addition, the Company recorded a $1.0 million recovery of credit losses on unfunded commitments. The Company also recorded a $2.2 million recovery of credit losses on investment securities. As a result, total credit loss expense for the nine months ended September 30, 2025 was $6.5 million. During the nine months ended September 30, 2025, the Company recorded $7.4 million in special income from equity investments, $2.0 million in recoveries on historic losses, a $1.9 million gain on the retirement of subordinated debt, $1.5 million in income from an FDIC assessment reduction, $1.4 million in BOLI death benefits, a $1.2 million increase in the fair value of marketable securities, a $983,000 gain on sale of bank premises and equipment, and $885,000 in legal fee reimbursements, which was partially offset by $3.3 million in legal claims expense.
Current report
Our net interest margin increased from 4.23% for the nine-month period ended September 30, 2024 to 4.48% for the nine-month period ended September 30, 2025. The yield on interest earning assets was 6.45% and 6.52% for the nine months ended September 30, 2025 and 2024, respectively, and average interest earning assets decreased from $20.16 billion to $19.95 billion. The decrease in average interest earning assets is primarily due to a $413.1 million decrease in average investment securities and a $214.1 million decrease in average interest-bearing balances due from banks, which was partially offset by a $423.1 million increase in average loans receivable. For the nine months ended September 30, 2025 and 2024, we recognized $3.9 million and $6.5 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 $3.4 million in event income for both the nine-months ended September 30, 2025 and 2024. The cost of interest bearing liabilities decreased from 3.14% for the nine-months ended September 30, 2024 to 2.73% for the nine-months ended September 30, 2025, and average interest-bearing liabilities decreased from $14.72 billion to $14.44 billion. The decrease in average interest-bearing liabilities is primarily due to a $728.5 million decrease in FHLB and other borrowed funds and a $34.3 million decrease in subordinated debentures, which was partially offset by a $504.0 million increase in average interest-bearing deposits. The reduction in FHLB borrowed funds was due to the Company paying off its BTFP advance in November 2024. During the third 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 reduction in subordinated debentures was due to the Company completing the payoff of its $140.0 million 5.50% Fixed-to-Floating Rate Subordinated Notes due 2030 and the Company also repurchasing $20.0 million of its $300.0 million Fixed-to-Floating Rate Subordinated Notes due 2032 during the third quarter of 2025. The two payoff events were accretive to the net interest margin by approximately one basis point. 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 interest expense resulting from a reduction in the average balance of interest-bearing liabilities and an increase in interest income resulting from the increase in 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
During the nine months ended September 30, 2025, we closed one branch in Jacksonville, Arkansas, and we opened a new branch in San Antonio, Texas.
Current report
For the three and nine months ended September 30, 2025 and 2024
Current report
Our net income increased $23.6 million, or 23.6%, to $123.6 million for the three-month period ended September 30, 2025, from $100.0 million for the same period in 2024. On a diluted earnings per share basis, our earnings were $0.63 per share for the three-month period ended September 30, 2025 compared to $0.50 per share for the three-month period ended September 30, 2024. During the three months ended September 30, 2025, the Company recorded $6.7 million in provision for credit losses on loans. In addition, the Company recorded a $1.0 million recovery of credit losses on unfunded commitments. The Company also recorded a $2.2 million recovery of credit losses on investment securities. As a result, total credit loss expense for the three-month period ended September 30, 2025 was $3.5 million. During the three months ended September 30, 2025, the Company recorded $2.0 million in recoveries on historic losses, a $1.9 million gain on the retirement of subordinated debt, a $1.0 million increase in the fair value of marketable securities and $187,000 in BOLI death benefits.
Current report
Our net income increased $55.5 million, or 18.4%, to $357.2 million for the nine-month period ended September 30, 2025, from $301.7 million for the same period in 2024. On a diluted earnings per share basis, our earnings were $1.80 per share for the nine-month period ended September 30, 2025 compared to $1.51 per share for the nine-month period ended September 30, 2024. During the nine months ended September 30, 2025, the Company recorded $9.7 million in provision for credit losses on loans. In addition, the Company recorded a $1.0 million recovery of credit losses on unfunded commitments. The Company also recorded a $2.2 million recovery of credit losses on investment securities. As a result, total credit loss expense for the nine months ended September 30, 2025 was $6.5 million. During the nine months ended September 30, 2025, the Company recorded $7.4 million in special income from equity investments, $2.0 million in recoveries on historic losses, a $1.9 million gain on the retirement of subordinated debt, $1.5 million in income from an FDIC assessment reduction, $1.4 million in BOLI death benefits, a $1.2 million increase in the fair value of marketable securities, a $983,000 gain on sale of bank premises and equipment, and $885,000 in legal fee reimbursements, which was partially offset by $3.3 million in legal claims expense.
Current report
Our net interest margin increased from 4.28% for the three-month period ended September 30, 2024 to 4.56% for the three-month period ended September 30, 2025. The yield on interest earning assets decreased from 6.60% for the three-months ended September 30, 2025 to 6.49% for the three-months ended September 30, 2024, and average interest earning assets decreased from $20.23 billion to $19.94 billion. The decrease in average interest earning assets is primarily due to a $400.3 million decrease in average investment securities and a $335.8 million decrease in average interest-bearing balances due from banks, partially offset by a $453.8 million increase in average loans receivable. For the three months ended September 30, 2025 and 2024, we recognized $1.3 million and $1.9 million, respectively, in total net accretion for acquired loans and deposits. The reduction in accretion was dilutive to the net interest margin by one basis point. We recognized $1.5 million in event income for the three-months ended September 30, 2025 compared to $573,000 for the three-months ended September 30, 2024. The increase in accretion was accretive to the net interest margin by two basis points. The cost of interest bearing liabilities decreased from 3.17% for the three-months ended September 30, 2024 to 2.69% for the three-months ended September 30, 2025, and average interest-bearing liabilities decreased from $14.76 billion to $14.36 billion. The decrease in average interest-bearing liabilities is primarily due to a $750.4 million decrease in FHLB and other borrowed funds and a $100.7 million decrease in average subordinated debentures, which was partially offset by a $454.5 million increase in average interest-bearing deposits. The reduction in FHLB borrowed funds was due to the Company paying off its BTFP advance in November 2024. During the third 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 reduction in subordinated debentures was due to the Company completing the payoff of its $140.0 million 5.50% Fixed-to-Floating Rate Subordinated Notes due 2030 and the Company also repurchasing $20.0 million of its $300.0 million Fixed-to-Floating Rate Subordinated Notes due 2032 during the third quarter of 2025. The two payoff events were accretive to the net interest margin by approximately three basis points. 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 interest expense resulting from a reduction in the average balance of interest-bearing liabilities and an increase in interest income resulting from the increase in 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 4.23% for the nine-month period ended September 30, 2024 to 4.48% for the nine-month period ended September 30, 2025. The yield on interest earning assets was 6.45% and 6.52% for the nine months ended September 30, 2025 and 2024, respectively, and average interest earning assets decreased from $20.16 billion to $19.95 billion. The decrease in average interest earning assets is primarily due to a $413.1 million decrease in average investment securities and a $214.1 million decrease in average interest-bearing balances due from banks, which was partially offset by a $423.1 million increase in average loans receivable. For the nine months ended September 30, 2025 and 2024, we recognized $3.9 million and $6.5 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 $3.4 million in event income for both the nine-months ended September 30, 2025 and 2024. The cost of interest bearing liabilities decreased from 3.14% for the nine-months ended September 30, 2024 to 2.73% for the nine-months ended September 30, 2025, and average interest-bearing liabilities decreased from $14.72 billion to $14.44 billion. The decrease in average interest-bearing liabilities is primarily due to a $728.5 million decrease in FHLB and other borrowed funds and a $34.3 million decrease in subordinated debentures, which was partially offset by a $504.0 million increase in average interest-bearing deposits. The reduction in FHLB borrowed funds was due to the Company paying off its BTFP advance in November 2024. During the third 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 reduction in subordinated debentures was due to the Company completing the payoff of its $140.0 million 5.50% Fixed-to-Floating Rate Subordinated Notes due 2030 and the Company also repurchasing $20.0 million of its $300.0 million Fixed-to-Floating Rate Subordinated Notes due 2032 during the third quarter of 2025. The two payoff events were accretive to the net interest margin by approximately one basis point. 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 interest expense resulting from a reduction in the average balance of interest-bearing liabilities and an increase in interest income resulting from the increase in 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
Credit Loss Expense: During the three months ended September 30, 2025, the Company recorded $6.7 million in provision for credit losses on loans. In addition, the Company recorded a $1.0 million recovery of credit losses on unfunded commitments. The Company also recorded a $2.2 million recovery of credit losses on investment securities. As a result, total credit loss expense for the three-month period ended September 30, 2025 was $3.5 million. During the nine months ended September 30, 2025, the Company recorded $9.7 million in provision for credit losses on loans. In addition, the Company recorded a $1.0 million recovery of credit losses on unfunded commitments. The Company also recorded a $2.2 million recovery of credit losses on investment securities. As a result, total credit loss expense for the nine months ended September 30, 2025 was $6.5 million.
Current report
During the three months ended September 30, 2024, the Company recorded $18.9 million in credit loss expense. The $18.9 million of credit loss expense includes $18.2 million in provision for credit losses on loans. Of the $18.2 million provision for credit losses on loans recorded, $16.7 million was used to establish a hurricane reserve for loans impacted by Hurricane Helene. The Company also recorded a $1.0 million provision for credit losses on unfunded commitments, which completely offset the $1.0 million recovery of credit losses on unfunded commitments that was recorded during the first quarter of 2024. The Company also recorded a $330,000 recovery of credit losses on available-for-sale investments. During the nine months ended September 30, 2024, the Company recorded $31.4 million in credit loss expense. The $31.4 million of credit loss expense includes $31.7 million in provision for credit losses on loans, which was partially offset by the $330,000 recovery of credit losses on available-for-sale investments. Of the $31.7 million provision for credit losses on loans recorded, $16.7 million was used to establish a hurricane reserve for loans. For both the three and nine month periods ended September 30, 2024, the Company determined the $2.0 million allowance for credit losses on the held-to-maturity portfolio was adequate. Therefore, no additional provision was considered necessary for the HTM portfolio.
Current report
•The $598,000 increase in service charges on deposit accounts is primarily related to an increase in overdraft fees.
Current report
•The $6.4 million increase in other income is primarily due to a $1.9 million gain on repurchase of subordinated debt, a $1.8 million increase in income from a lawsuit settlement, a $986,000 increase in investment brokerage fee income, a $741,000 increase in fair value of equity securities, a $539,000 increase in recoveries on historic losses and a $264,000 increase in building rental income.
Current report
Additional details for the nine months ended September 30, 2025 on some of the more significant changes are as follows:
Current report
Non-interest expense increased $4.8 million, or 4.4%, to $114.8 million for the three months ended September 30, 2025 from $110.0 million for the same period in 2024. The primary factor that resulted in this increase was the increase in salaries and employee benefits, which were partially offset by the decrease in legal and accounting expense.
Current report
Additional details for the nine months ended September 30, 2025 on some of the more significant changes are as follows:
Current report
On September 4, 2025, the Company repurchased $20.0 million of the 2032 Notes in an open-market transaction. The repurchase resulted in a $1.9 million gain.
Removed paragraphs (14)
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous report
For the three and six months ended June 30, 2025 and 2024
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous report
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 report
•The $512,000 increase in trust fees is primarily due to increases in IRA fees and personal trust fees.
Previous report
•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 report
Additional details for the six months ended June 30, 2025 on some of the more significant changes are as follows:
Previous report
Additional details for the six months ended June 30, 2025 on some of the more significant changes are as follows:
Reworded paragraphs (83)
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 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.
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 September 30, 2025, we had, on a consolidated basis, total assets of $22.71 billion, loans receivable, net of allowance for credit losses, of $15.00 billion, total deposits of $17.33 billion, and stockholders’ equity of $4.21 billion.
Previous wording
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 wording
Total interest expense decreased $20.3 million, or 17.2%, and non-interest income increased $8.7 million, or 20.4%. This was partially offset by a $9.3 million, or 2.8%, decrease in total interest income and a $4.8 million, or 4.4%, increase in non-interest expense. The decrease in interest expense was primarily due to a $9.8 million, or 10.0%, decrease in interest on deposits and a $9.0 million, or 62.6%, decrease in interest on FHLB and other borrowed funds. The increase in non-interest income was primarily due to a $6.4 million, or 85.8%, increase in other income and a $1.6 million, or 15.6%, increase in other service charges and fees. Included within other income was the $2.0 million in income from recoveries of historic losses, $1.9 million gain on retirement of subordinated debt and $187,000 in BOLI death benefits. The decrease in interest income resulted from a $5.9 million, or 48.4%, decrease in interest income on deposits at other banks, and a $4.6 million, or 12.0%, decrease in investment interest income, which was partially offset by a $1.2 million, or 0.4%, increase in loan interest income. The increase in non-interest expense was primarily due to a $4.9 million, or 8.4%, increase in salaries and employee benefits expense.
Previous 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).
Current wording
Our efficiency ratio was 40.21% for the three months ended September 30, 2025, compared to 41.42% for the same period in 2024. For the third quarter of 2025, our efficiency ratio, as adjusted (non-GAAP), was 40.95%, compared to 41.66% reported for the third quarter of 2024. (See Table 29 for the non-GAAP tabular reconciliation).
Previous 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).
Current wording
Our annualized return on average assets was 2.17% for the three months ended September 30, 2025, compared to 1.74% 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 11.91% and 10.23% for the three months ended September 30, 2025, and 2024, respectively. (See Table 27 for the related non-GAAP financial measures and tabular reconciliation).
Previous wording
Results of Operations for the Six Months Ended June 30, 2025 and 2024
Current wording
Results of Operations for the Nine Months Ended September 30, 2025 and 2024
Previous 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.
Current wording
Total interest expense decreased $51.0 million, or 14.8%, and non-interest income increased $20.7 million, or 16.2%. This was partially offset by a $21.9 million, or 2.2%, decrease in total interest income and a $9.1 million, or 2.7%, increase in non-interest expense. The decrease in interest expense was primarily due to a $26.1 million, or 60.8%, decrease in interest on FHLB and other borrowed funds and a $22.8 million, or 8.0%, decrease in interest on deposits. The increase in non-interest income was primarily due to a $17.3 million, or 80.3%, increase in other income and a $4.1 million, or 13.1%, increase in other service charges and fees. Included within other income was the $7.4 million in special income from equity investments, $2.0 million in recoveries on historic losses, $1.9 million gain on retirement of subordinated debt, $1.4 million in BOLI death benefits and $885,000 in legal fee reimbursements. The decrease in interest income resulted from a $16.9 million, or 14.1%, decrease in investment interest income and a $13.4 million, or 38.0%, decrease in interest income on deposits at other banks, which was partially offset by an $8.4 million, or 1.0%, increase in loan interest income. The increase in non-interest expense was primarily due to a $9.8 million, or 5.4%, increase in salaries and employee benefits expense, which was partially offset by a $1.4 million, or 5.1%, decrease in data processing expense.
Previous wording
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 wording
Our efficiency ratio was 41.35% for the nine months ended September 30, 2025, compared to 42.91% for the same period in 2024. For the nine months ended September 30, 2025, our efficiency ratio, as adjusted (non-GAAP), was 41.91%, compared to 42.87% reported for the same period of 2024. (See Table 29 for the non-GAAP tabular reconciliation).
Previous wording
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 wording
Our annualized return on average assets was 2.11% for the nine months ended September 30, 2025, compared to 1.77% 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 11.81% and 10.53% for the nine months ended September 30, 2025, and 2024, respectively. (See Table 27 for the related non-GAAP financial measures and tabular reconciliation).
Previous 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.
Current wording
Our total assets as of September 30, 2025 increased $217.1 million to $22.71 billion from $22.49 billion reported as of December 31, 2024. Cash and cash equivalents decreased $109.4 million for the nine months ended September 30, 2025. Our loan portfolio balance increased to $15.29 billion, as of September 30, 2025, from $14.76 billion at December 31, 2024. The increase in loans was primarily due to $563.1 million of organic loan growth in our community banking footprint, which was partially offset by $41.6 million of loan decline from our Centennial Commercial Finance Group ("Centennial CFG") franchise. Investment securities decreased by $159.1 million resulting from paydowns and maturities during the first nine months of 2025. Total deposits increased $181.4 million to $17.33 billion as of September 30, 2025 from $17.15 billion as of December 31, 2024. Subordinated debentures decreased by $160.2 million for the nine months ended September 30, 2025. The reduction in subordinated debentures was due to the Company completing the payoff of its $140.0 million 5.50% Fixed-to-Floating Rate Subordinated Notes due 2030 and the Company also repurchasing $20.0 million of its $300.0 million Fixed-to-Floating Rate Subordinated Notes due 2032 during the third quarter of 2025. Stockholders’ equity increased $253.9 million to $4.21 billion as of September 30, 2025, compared to $3.96 billion as of December 31, 2024. The $253.9 million increase in stockholders’ equity is primarily associated with the $357.2 million in net income and $73.0 million in other comprehensive income for the nine months ended September 30, 2025, which was partially offset by the $117.7 million in shareholder dividends paid and stock repurchases of $67.3 million.
Previous 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.
Current wording
Our non-performing loans were $85.2 million, or 0.56% of total loans as of September 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 335.22% as of September 30, 2025, from 278.99% as of December 31, 2024. As of September 30, 2025, our non-performing assets decreased to $126.5 million, or 0.56% of total assets, from $142.4 million, or 0.63% of total assets, as of December 31, 2024.
Previous wording
As of June 30, 2025, we had 217 branch locations. There were 75 branches in Arkansas, 78 branches in Florida, 58 branches in Texas, five branches in Alabama and one branch in New York City.
Current wording
As of September 30, 2025, we had 218 branch locations. There were 75 branches in Arkansas, 78 branches in Florida, 59 branches in Texas, five branches in Alabama and one branch in New York City.
Previous wording
The Federal Reserve Board sets various benchmark rates, including the Federal Funds rate, and thereby influences the general market rates of interest, including the deposit and loan rates offered by financial institutions. The Federal Reserve reduced the target rate three times during 2024. First, on September 18, 2024, the target rate was reduced to 4.75% to 5.00%, second, on November 7, 2024, the target rate was reduced to 4.50% to 4.75% and third, on December 18, 2024, the target rate was reduced to 4.25% to 4.50%. As of June 30, 2025, the Federal Reserve has not changed the rates during 2025.
Current wording
The Federal Reserve Board sets various benchmark rates, including the Federal Funds rate, and thereby influences the general market rates of interest, including the deposit and loan rates offered by financial institutions. The Federal Reserve reduced the target rate three times during 2024. First, on September 18, 2024, the target rate was reduced to 4.75% to 5.00%, second, on November 7, 2024, the target rate was reduced to 4.50% to 4.75% and third, on December 18, 2024, the target rate was reduced to 4.25% to 4.50%. On September 17, 2025, the Federal Reserve reduced the target rate to 4.00% to 4.25%.
Previous 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.
Current wording
Net interest income on a fully taxable equivalent basis increased $11.2 million, or 5.2%, to $229.1 million for the three-month period ended September 30, 2025, from $217.8 million for the same period in 2024. This increase in net interest income for the three-month period ended September 30, 2025 was the result of a $20.3 million decrease in interest expense, which was partially offset by a $9.0 million decrease in interest income, on a fully taxable equivalent basis. The $20.3 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 $15.4 million, in addition to a decrease in average interest bearing liabilities which reduced interest expense by approximately $4.9 million. The $9.0 million decrease in interest income was also primarily the result of the lower interest rate environment, as well. The lower yield on earning assets resulted in a decrease in interest income of approximately $10.1 million, which was partially offset by an increase of $1.1 million in interest income due to the change in average interest earning asset balances.
Previous wording
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 wording
Net interest income on a fully taxable equivalent basis increased $31.0 million, or 4.9%, to $668.8 million for the nine-month period ended September 30, 2025, from $637.8 million for the same period in 2024. This increase in net interest income for the nine-month period ended September 30, 2025 was the result of a $51.0 million decrease in interest expense, which was partially offset by an $20.0 million decrease in interest income, on a fully taxable equivalent basis. The $51.0 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 $39.4 million, in addition to a decrease in average interest bearing liabilities which reduced interest expense by approximately $11.6 million. The $20.0 million decrease in interest income was also primarily the result of the lower interest rate environment, as well. The lower yield on earning assets resulted in a decrease in interest income of approximately $24.9 million, which was partially offset by an increase of $4.8 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 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.
Current wording
Tables 2 and 3 reflect an analysis of net interest income on a fully taxable equivalent basis for the three and nine months ended September 30, 2025 and 2024, as well as changes in the fully taxable equivalent net interest margin for the three and nine months ended September 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 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.
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 nine months ended September 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 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.
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 nine months ended September 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
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.
Current wording
Net charge-offs to average total loans were 0.08% and 0.04% for the three months ended September 30, 2025 and 2024, respectively. Net charge-offs to average total loans were 0.00% and 0.07% for the nine months ended September 30, 2025 and 2024, respectively.
Previous 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.
Current wording
Total non-interest income was $51.5 million and $148.0 million for the three and nine months ended September 30, 2025, compared to $42.8 million and $127.4 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 and six months ended June 30, 2025 and 2024.
Current wording
Table 6 measures the various components of our non-interest income for the three and nine months ended September 30, 2025 and 2024.
Previous wording
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 wording
Non-interest income increased $8.7 million, or 20.4%, to $51.5 million for the three months ended September 30, 2025 from $42.8 million for the same period in 2024. The primary factors in this increase were the increases in service charges on deposit accounts, other service charges and fees and other income, which was partially offset by the decrease in fair value adjustment for marketable securities.
Previous 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.
Current wording
•The $1.6 million increase in other service charges and fees is primarily related to an increase in Centennial CFG property finance loan fees.
Previous wording
•The $525,000 decrease in the fair value adjustment for marketable securities is due to market fluctuations.
Current wording
•The $372,000 decrease in the fair value adjustment for marketable securities is due to market fluctuations.
Previous 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.
Current wording
Non-interest income increased $20.7 million, or 16.2%, to $148.0 million for the nine months ended September 30, 2025 from $127.4 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; gain on OREO, net and fair value adjustment for marketable securities.
Previous wording
•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 wording
•The $4.1 million increase in other service charges and fees is primarily related to an increase in Centennial CFG property finance loan fees.
Previous wording
•The $504,000 increase in mortgage lending income is primarily related to an increase in volume of secondary market loans.
Current wording
•The $799,000 increase in mortgage lending income is primarily related to an increase in volume of secondary market loans.
Previous 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.
Current wording
•The $1.0 million 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 $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 wording
•The $609,000 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.
Previous wording
•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 wording
•The $1.3 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.
Previous wording
•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 wording
•The $515,000 decrease in the gain on OREO, net, is primarily due to a loss on the sale of a building from our Florida region during 2025.
Previous wording
•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 wording
•The $17.3 million increase in other income is primarily due to an $8.3 million increase in fair value of equity securities, which includes $7.4 million in special income from equity investments, a $1.9 million gain on repurchase of subordinated debt, a $1.9 million increase in recoveries on historic losses, a $1.8 million increase in income from a lawsuit settlement, a $1.5 million increase in investment brokerage fee income, a $1.3 million increase in BOLI death benefit income, a $557,000 increase in building rental income and a $513,000 increase in miscellaneous income.
Previous wording
Table 7 below sets forth a summary of non-interest expense for the three and six months ended June 30, 2025 and 2024.
Current wording
Table 7 below sets forth a summary of non-interest expense for the three and nine months ended September 30, 2025 and 2024.
Previous wording
•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 wording
•The $4.9 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.
Previous wording
•The $1.3 million increase in legal and accounting expense is primarily due to ongoing legal matters.
Current wording
•The $841,000 decrease in legal and accounting expense is primarily due to legal matters which occurred during 2024.
Previous 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.
Current wording
Non-interest expense increased $9.1 million, or 2.7%, to $343.8 million for the nine months ended September 30, 2025 from $334.7 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 and other expense, which were partially offset by the decreases in data processing expense and FDIC and state assessment expense.
Previous wording
•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 wording
•The $9.8 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 and an increase in deferred loan costs.
Previous wording
•The $1.2 million decrease in data processing expense is primarily due to relationship credits received as a result of a new contract.
Current wording
•The $1.4 million decrease in data processing expense is primarily due to relationship credits received as a result of a new contract.
Previous wording
•The $636,000 increase in advertising expense is primarily due to an increased volume of advertising.
Current wording
•The $975,000 increase in advertising expense is primarily due to an increased volume of advertising.
Previous wording
•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 wording
•The $3.8 million increase in other expense is primarily due to $3.3 million in legal claims expense being recorded during the second quarter of 2025.
Previous 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.
Current wording
Income tax expense increased $6.7 million, or 23.0%, to $35.7 million for the three-month period ended September 30, 2025, from $29.0 million for the same period in 2024. Income tax expense increased $10.0 million, or 11.0%, to $101.3 million for the nine-month period ended September 30, 2025, from $91.2 million for the same period in 2024. The effective income tax rate was 22.42% and 22.09% for the three and nine months ended September 30, 2025, compared to 22.50% and 23.22% for the same period in 2024. The marginal tax rate was 24.433% and 24.989% for 2025 and 2024, respectively.
Showing the first 40 of 83 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
•The $897,000 decrease in the fair value adjustment for marketable securities is due to market fluctuations.
Rearranged previous paragraphs (7)
Previous report — wording carried elsewhere
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 report — wording carried elsewhere
•The $545,000 increase in mortgage lending income is primarily related to an increase in volume of secondary market loans.
Previous report — wording carried elsewhere
•The $571,000 decrease in data processing expense is primarily due to relationship credits received as a result of a new contract.
Previous report — wording carried elsewhere
•Other expense increased $3.7 million primarily due to $3.3 million in legal claims expense being recorded during the second quarter of 2025.
Previous report — wording carried elsewhere
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.
Previous report — wording carried elsewhere
•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.
Previous report — wording carried elsewhere
Subordinated debentures were $439.0 million and $439.2 million as of June 30, 2025 and December 31, 2024, respectively.