HOME BANCSHARES INC

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 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.

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 March 31, 2026, we had, on a consolidated basis, total assets of $23.20 billion, loans receivable, net of allowance for credit losses, of $15.34 billion, total deposits of $17.74 billion, and stockholders’ equity of $4.35 billion.

Previous 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.

Current wording

Total interest expense decreased $10.8 million, or 11.0%. This was partially offset by a $2.6 million, or 5.8%, decrease in non-interest income, a $1.5 million, or 0.5%, decrease in total interest income and a $1.0 million, or 0.9%, increase in non-interest expense. The decrease in interest expense was primarily due to a $7.6 million, or 8.8%, decrease in interest on deposits, a $1.8 million, or 42.9%, decrease in interest on subordinated debentures, and a $1.2 million, or 20.5%, decrease in interest on FHLB and other borrowed funds. The decrease in non-interest income was primarily due to a $2.3 million, or 20.5%, decrease in other income, a $1.7 million, or 382.4%, decrease in fair value adjustment for marketable securities and an $879,000, or 8.2%, decrease in other service charges and fees, which was partially offset by a $1.1 million, or 288.0%, increase in gain (loss) on OREO. Included within March 31, 2025 other income was $3.9 million in special income from equity investments. The decrease in interest income resulted from a $2.5 million, or 7.2%, decrease in investment interest income and a $1.7 million, or 25.3%, decrease in interest income on deposits at other banks, which were partially offset by a $2.7 million, or 1.0%, increase in loan interest income. The increase in non-interest expense was primarily due to a $1.4 million, or 2.2%, increase in salaries and employee benefits expense, $442,000, or 3.1%, increase in occupancy and equipment expense, $394,000 in merger and acquisition expense in the first quarter of 2026 compared to none in the prior year period, and a $326,000, or 3.8%, increase in data processing expense. These expenses were partially offset by a $1.5 million, or 5.33%, decrease in other operating expenses. Included within other operating expenses was the $1.7 million in FDIC special assessment credits.

Previous 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).

Current wording

Our efficiency ratio was 41.59% for the three months ended March 31, 2026, compared to 42.22% for the same period in 2025. For the first quarter of 2026, our efficiency ratio, as adjusted (non-GAAP), was 41.99%, compared to 42.84% reported for the first quarter of 2025. (See Table 29 for the non-GAAP tabular reconciliation).

Previous 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).

Current wording

Our annualized return on average assets was 2.09% for the three months ended March 31, 2026, compared to 2.07% for the same period in 2025. (See Table 26 for the related non-GAAP financial measures and tabular reconciliation). Our annualized return on average common equity was 11.09% and 11.75% for the three months ended March 31, 2026, and 2025, respectively. (See Table 27 for the related non-GAAP financial measures and tabular reconciliation).

Previous 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.

Current wording

Our total assets, as of March 31, 2026, increased $319.8 million to $23.20 billion from $22.88 billion reported as of December 31, 2025. Cash and cash equivalents increased $444.6 million for the three months ended March 31, 2026. Our loan portfolio balance decreased to $15.63 billion, as of March 31, 2026, from $15.69 billion at December 31, 2025. The decrease in loans was primarily due to $100.5 million of organic loan decline in our community banking footprint, which was partially offset by $47.9 million of loan growth from our Centennial Commercial Finance Group ("Centennial CFG") franchise. Investment securities decreased by $70.7 million resulting from paydowns and maturities during the first three months of 2026. Total deposits increased $258.3 million to $17.74 billion as of March 31, 2026 from $17.48 billion as of December 31, 2025. Stockholders’ equity increased $52.7 million to $4.35 billion as of March 31, 2026, compared to $4.30 billion as of December 31, 2025. The $52.7 million increase in stockholders’ equity is primarily associated with the $118.2 million in net income for the three months ended March 31, 2026, partially offset by the $13.5 million in other comprehensive loss, the $41.3 million in shareholder dividends paid and stock repurchases of $13.9 million.

Previous wording

Investments – Available-for-sale. Securities available-for-sale ("AFS") are reported at fair value with unrealized holding gains and losses reported as a separate component of stockholders’ equity and other comprehensive income (loss), net of taxes. Securities that are held as available-for-sale are used as a part of our asset/liability management strategy. Securities that may be sold in response to interest rate changes, changes in prepayment risk, the need to increase regulatory capital, and other similar factors are classified as available-for-sale. The Company evaluates all securities quarterly to determine if any securities in a loss position require a provision for credit losses in accordance with ASC 326. The Company first assesses whether it intends to sell or is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For securities that do not meet this criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, and changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. The Company has made the election to exclude accrued interest receivable on AFS securities from the estimate of credit losses and report accrued interest separately on the consolidated balance sheets. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectability of a security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

Current wording

Investments – Available-for-sale. Securities available-for-sale ("AFS") are reported at fair value with unrealized holding gains and losses reported as a separate component of stockholders’ equity and other comprehensive income (loss), net of taxes. Securities that are held as available-for-sale are used as a part of our asset/liability management strategy. Securities that may be sold in response to interest rate changes, changes in prepayment risk, the need to increase regulatory capital, and other similar factors are classified as available-for-sale. The Company evaluates all securities quarterly to determine if any securities in a loss position require a provision for credit losses in accordance with ASC 326. The Company first assesses whether it intends to sell or is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For securities that do not meet these criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, and changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. The Company has made the election to exclude accrued interest receivable on AFS securities from the estimate of credit losses and report accrued interest separately on the consolidated balance sheets. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectability of a security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

Previous wording

Loans Receivable and Allowance for Credit Losses. Except for loans acquired during our acquisitions, substantially all of our loans receivable are reported at their outstanding principal balance adjusted for any charge-offs, as it is management’s intent to hold them for the foreseeable future or until maturity or payoff, except for mortgage loans held for sale. Interest income on loans is accrued over the term of the loans based on the principal balance outstanding.

Current wording

Loans Receivable and Allowance for Credit Losses. Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding principal balance adjusted for any charge-offs, deferred fees or costs on originated loans. Interest income on loans is accrued over the term of the loans based on the principal balance outstanding. Loan origination fees and direct origination costs are capitalized and recognized as adjustments to yield on the related loans.

Previous wording

Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in the national unemployment rate, gross domestic product, rental vacancy rate, housing price index and rental vacancy rate index.

Current wording

Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in the national unemployment rate, gross domestic product, national retail sales index and the Federal Housing Finance Agency ("FHFA") housing price index.

Previous wording

The allowance for credit losses for each segment is measured through the use of the discounted cash flow method ("DCF"). Loans evaluated individually that are considered to be collateral dependent are not included in the collective evaluation. For these loans, where the Company has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the loan to be provided substantially through the operation or sale of the collateral, the allowance for credit losses is measured based on the difference between the fair value of the collateral, net of estimated costs to sell, and the amortized cost basis of the loan as of the measurement date. When repayment is expected to be from the operation of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the loan exceeds the present value of expected cash flows from the operation of the collateral. The allowance for credit losses may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the loan, net of estimated costs to sell. For individually analyzed loans which are not considered to be collateral dependent, an allowance is recorded based on the loss rate for the respective pool within the collective evaluation.

Current wording

Loans evaluated individually that are considered to be collateral dependent are not included in the collective evaluation. For these loans, where the Company has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the loan to be provided substantially through the sale of the collateral, the allowance for credit losses is measured based on the difference between the fair value of the collateral, net of estimated costs to sell, and the amortized cost basis of the loan as of the measurement date. When repayment is expected to be from the operation of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the loan exceeds the present value of expected cash flows from the operation of the collateral. The allowance for credit losses may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the loan, net of estimated costs to sell. For individually analyzed loans which are not considered to be collateral dependent, an allowance is recorded based on the loss rate for the respective pool within the collective evaluation.

Previous wording

Loans are placed on non-accrual status when management believes that the borrower’s financial condition, after giving consideration to economic and business conditions and collection efforts, is such that collection of interest is doubtful, or generally when loans are 90 days or more past due. Loans are charged against the allowance for credit losses when management believes that the collectability of the principal is unlikely. Accrued interest related to non-accrual loans is generally charged against the allowance for credit losses when accrued in prior years and reversed from interest income if accrued in the current year. Interest income on non-accrual loans may be recognized to the extent cash payments are received, although the majority of payments received are usually applied to principal. Non-accrual loans are generally returned to accrual status when principal and interest payments are less than 90 days past due, the customer has made required payments for at least six months, and we reasonably expect to collect all principal and interest.

Current wording

Loans are placed on non-accrual status when management believes that the borrower’s financial condition, after giving consideration to economic and business conditions and collection efforts, is such that collection of interest is doubtful, or generally when loans are 90 days or more past due. Loans are charged against the allowance for credit losses when management believes that the collectability of the principal is unlikely. Accrued interest related to non-accrual loans is generally charged against the allowance for credit losses when accrued in prior years and reversed from interest income if accrued in the current year. Interest income on non-accrual loans may be recognized to the extent cash payments are received, although the majority of payments received are usually applied to principal. Non-accrual loans are generally returned to accrual status when principal and interest payments are less than 90 days past due, the customer has made the required payments for at least six months, and we reasonably expect to collect all principal and interest.

Previous wording

Intangible Assets. Intangible assets consist of goodwill and core deposit intangibles. Goodwill represents the excess purchase price over the fair value of net assets acquired in business acquisitions. The core deposit intangible represents the excess intangible value of acquired deposit customer relationships as determined by valuation specialists. The core deposit intangibles are being amortized over 48 months to 121 months on a straight-line basis. Goodwill is not amortized but rather is evaluated for impairment on at least an annual basis. We perform an annual impairment test of goodwill and core deposit intangibles as required by FASB ASC 350, Intangibles - Goodwill and Other, in the fourth quarter or more often if events and circumstances indicate there may be an impairment.

Current wording

Intangible Assets. Intangible assets consist of goodwill and core deposit intangibles. Goodwill represents the excess purchase price over the fair value of net assets acquired in business acquisitions. The core deposit intangible represents the excess intangible value of acquired deposit customer relationships as determined by valuation specialists. The core deposit intangibles are being amortized over 48 months to 120 months on a straight-line basis. Goodwill is not amortized but rather is evaluated for impairment on at least an annual basis. We perform an annual impairment test of goodwill and core deposit intangibles as required by FASB ASC 350, Intangibles - Goodwill and Other, in the fourth quarter or more often if events and circumstances indicate there may be an impairment.

Previous wording

Net interest income, our principal source of earnings, is the difference between the interest income generated by earning assets and the total interest cost of the deposits and borrowings obtained to fund those assets. Factors affecting the level of net interest income include the volume of earning assets and interest-bearing liabilities, yields earned on loans and investments, rates paid on deposits and other borrowings, the level of non-performing loans and the amount of non-interest-bearing liabilities supporting earning assets. Net interest income is analyzed in the discussion and tables below on a fully taxable equivalent basis. The adjustment to convert certain income to a fully taxable equivalent basis consists of dividing tax-exempt income by one minus the combined federal and state income tax rate (24.433% and 24.989% for 2025 and 2024, respectively).

Current wording

Net interest income, our principal source of earnings, is the difference between the interest income generated by earning assets and the total interest cost of the deposits and borrowings obtained to fund those assets. Factors affecting the level of net interest income include the volume of earning assets and interest-bearing liabilities, yields earned on loans and investments, rates paid on deposits and other borrowings, the level of non-performing loans and the amount of non-interest-bearing liabilities supporting earning assets. Net interest income is analyzed in the discussion and tables below on a fully taxable equivalent basis. The adjustment to convert certain income to a fully taxable equivalent basis consists of dividing tax-exempt income by one minus the combined federal and state income tax rate (24.359% and 24.433% for 2026 and 2025, respectively).

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%. On September 17, 2025, the Federal Reserve reduced the target rate to 4.00% to 4.25%.

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 2025. First, on September 17, 2025, the Federal Reserve reduced the target rate to 4.00% to 4.25%, second, on October 29, 2025, the target rate was reduced to 3.75% to 4.00% and third, on December 10, 2025, the target rate was reduced to 3.50% to 3.75%. The Federal Reserve has not changed the target rate during 2026.

Previous 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.

Current wording

Net interest income on a fully taxable equivalent basis increased $9.4 million, or 4.3%, to $226.6 million for the three-month period ended March 31, 2026, from $217.2 million for the same period in 2025. This increase in net interest income for the three-month period ended March 31, 2026 was the result of a $10.8 million decrease in interest expense, which was partially offset by a $1.4 million decrease in interest income, on a fully taxable equivalent basis. The $10.8 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 $11.1 million, partially offset by an increase in average interest bearing liabilities which increased interest expense by approximately $347,000. The $1.4 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 $13.1 million, which was partially offset by an increase of $11.7 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 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.

Current 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, 2026 and 2025, as well as changes in the fully taxable equivalent net interest margin for the three months ended March 31, 2026 compared to the same period in 2025.

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 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.

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 months ended March 31, 2026 and 2025, 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 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.

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 months ended March 31, 2026 compared to the same period in 2025, 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 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 wording

Credit Loss Expense: During the three months ended March 31, 2026, the Company recorded $1.5 million in provision for credit losses on loans, and the Company recorded a $1.0 million recovery of credit losses on unfunded commitments. As a result, total credit loss expense for the three-month period ended March 31, 2026 was $500,000. During the three months ended March 31, 2026, the Company determined no allowance for credit losses on the available-for-sale portfolio was necessary. The Company also determined the $2.0 million allowance for credit losses on the held-to-maturity portfolio was adequate. Therefore, no provision was considered necessary for either portfolio.

Previous 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.

Current wording

Net charge-offs (recoveries) to average total loans were 0.04% and (0.11)% for the three months ended March 31, 2026 and 2025, respectively.

Previous 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.

Current wording

Total non-interest income was $42.8 million for the three months ended March 31, 2026, compared to $45.4 million for the same period in 2025. 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 nine months ended September 30, 2025 and 2024.

Current wording

Table 6 measures the various components of our non-interest income for the three months ended March 31, 2026 and 2025.

Previous 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.

Current wording

Non-interest income decreased $2.6 million, or 5.8%, to $42.8 million for the three months ended March 31, 2026 from $45.4 million for the same period in 2025. The primary factors in this decrease were the decreases in other service charges and fees, fair value adjustment for marketable securities and other income, which were partially offset by the increases in trust fees, mortgage lending income and the gain on OREO, net.

Previous 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.

Current wording

•The $879,000 decrease in other service charges and fees is primarily related to a decrease in Centennial CFG property finance loan fees.

Previous wording

•The $799,000 increase in mortgage lending income is primarily related to an increase in volume of secondary market loans.

Current wording

•The $831,000 increase in mortgage lending income is primarily due to an increase in volume of secondary market loans.

Previous 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.

Current wording

•The $1.1 million increase in gain on OREO, net is primarily due to the gain on the sale of a building from our Florida region in 2026 and the loss on the sale of a building from our Florida region during 2025.

Previous wording

•The $372,000 decrease in the fair value adjustment for marketable securities is due to market fluctuations.

Current wording

•The $1.7 million decrease in the fair value adjustment for marketable securities is due to market fluctuations.

Previous wording

Non-interest expense consists of salaries and employee benefits, occupancy and equipment, data processing, and other expenses such as advertising, amortization of intangibles, electronic banking expense, FDIC and state assessment, insurance, legal and accounting fees, other professional fees and other expenses.

Current wording

Non-interest expense consists of salaries and employee benefits, occupancy and equipment, data processing, merger and acquisition and other expenses such as advertising, amortization of intangibles, electronic banking expense, FDIC and state assessment, insurance, legal and accounting fees, other professional fees and other expenses.

Previous wording

Table 7 below sets forth a summary of non-interest expense for the three and nine months ended September 30, 2025 and 2024.

Current wording

Table 7 below sets forth a summary of non-interest expense for the three months ended March 31, 2026 and 2025.

Previous 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.

Current wording

Non-interest expense increased $1.0 million, or 0.9%, to $114.0 million for the three months ended March 31, 2026 from $112.9 million for the same period in 2025. The primary factors that resulted in this increase were the increases in salaries and employee benefits and in other expenses, which were partially offset by the decreases in FDIC and state assessment expense and legal and accounting expense.

Previous 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.

Current wording

•The $1.4 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, partially offset by a decrease in deferred loan costs.

Previous wording

•The $841,000 decrease in legal and accounting expense is primarily due to legal matters which occurred during 2024.

Current wording

•The $2.7 million decrease in legal and accounting expense is primarily due to legal matters which occurred during 2025.

Previous 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.

Current wording

Income tax expense increased $2.1 million, or 6.5%, to $34.0 million for the three-month period ended March 31, 2026, from $31.9 million for the same period in 2025. The effective income tax rate was 22.35% for the three months ended March 31, 2026, compared to 21.71% for the same period in 2025. The marginal tax rate was 24.359% and 24.433% for 2026 and 2025, respectively.

Previous 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.

Current wording

Our total assets, as of March 31, 2026, increased $319.8 million to $23.20 billion from $22.88 billion reported as of December 31, 2025. Cash and cash equivalents increased $444.6 million for the three months ended March 31, 2026. Our loan portfolio balance decreased to $15.63 billion, as of March 31, 2026, from $15.69 billion at December 31, 2025. The decrease in loans was primarily due to $100.5 million of organic loan decline in our community banking footprint, which was partially offset by $47.9 million of loan growth from our Centennial CFG franchise. Investment securities decreased by $70.7 million resulting from paydowns and maturities during the first three months of 2026. Total deposits increased $258.3 million to $17.74 billion as of March 31, 2026 from $17.48 billion as of December 31, 2025. Stockholders’ equity increased $52.7 million to $4.35 billion as of March 31, 2026, compared to $4.30 billion as of December 31, 2025. The $52.7 million increase in stockholders’ equity is primarily associated with the $118.2 million in net income for the three months ended March 31, 2026, partially offset by the $13.5 million in other comprehensive loss, the $41.3 million in shareholder dividends paid and stock repurchases of $13.9 million.

Previous wording

Our loan portfolio averaged $15.22 billion and $14.76 billion during the three months ended September 30, 2025 and 2024, respectively. Our loan portfolio averaged $15.06 billion and $14.63 billion during the nine months ended September 30, 2025 and 2024, respectively. Loans receivable were $15.29 billion and $14.76 billion as of September 30, 2025 and December 31, 2024, respectively.

Current wording

Our loan portfolio averaged $15.68 billion and $14.89 billion during the three months ended March 31, 2026 and 2025, respectively. Loans receivable were $15.63 billion and $15.69 billion as of March 31, 2026 and December 31, 2025, respectively.

Previous wording

From December 31, 2024 to September 30, 2025, the Company experienced an increase of approximately $521.5 million in loans. The increase in loans was due to $563.1 million of organic loan growth in our community banking footprint partially offset by $41.6 million of loan decline from our Centennial CFG franchise.

Current wording

From December 31, 2025 to March 31, 2026, the Company experienced a decline of approximately $52.6 million in loans. The decrease in loans was due to $100.5 million of organic loan decline in our community banking footprint partially offset by $47.9 million of 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 $3.77 billion, $4.38 billion, $3.90 billion, $95.4 million, $1.36 billion and $1.78 billion as of September 30, 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 $3.74 billion, $4.47 billion, $3.89 billion, $102.4 million, $1.37 billion and $2.06 billion as of March 31, 2026 in Arkansas, Florida, Texas, Alabama, SPF and Centennial CFG, respectively.

Previous wording

As of September 30, 2025, commercial real estate ("CRE") loans totaled $8.53 billion, or 55.8%, 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 $2.36 billion, $2.58 billion, $2.22 billion, $43.2 million, zero and $1.34 billion at September 30, 2025, respectively.

Current wording

As of March 31, 2026, commercial real estate ("CRE") loans totaled $8.33 billion, or 53.3%, of loans receivable, as compared to $8.35 billion, or 53.2%, of loans receivable, as of December 31, 2025. CRE loans originated in our Arkansas, Florida, Texas, Alabama, SPF and Centennial CFG markets were $2.25 billion, $2.65 billion, $1.93 billion, $50.7 million, zero and $1.45 billion at March 31, 2026, respectively.

Previous wording

As of September 30, 2025, we had approximately $1.08 billion of construction/land development loans which were collateralized by land. This consisted of approximately $81.9 million for raw land and approximately $1.00 billion for land with commercial and/or residential lots.

Current wording

As of March 31, 2026, we had approximately $1.21 billion of construction/land development loans which were collateralized by land. This consisted of approximately $40.8 million for raw land and approximately $1.17 billion for land with commercial and/or residential lots.

Previous wording

(2) Excludes multi-family residential loans of $716.6 million and $496.5 million as of September 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.

Current wording

(2) Excludes multi-family residential loans of $1.23 billion and $1.14 billion as of March 31, 2026 and December 31, 2025, 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 $716.6 million and $496.5 million as of September 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.

Current wording

(2) Excludes multi-family residential loans of $1.23 billion and $1.14 billion as of March 31, 2026 and December 31, 2025, respectively, which are included in the residential real estate loans throughout the filing. Multi-family residential loans are included in CRE for regulatory purposes.