HOME BANCSHARES INC
For the period ended Jun 30, 2026. Filed Aug 7, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 7, 2026
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 2026-03-31; filed 2026-05-05.
0001331520-26-000095
Item 2. : Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-07.
0001331520-26-000112
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 235 previous paragraphs and 243 current paragraphs.
113 unchanged; 72 reworded; 51 added; 48 removed; 2 previous and 7 current paragraphs rearranged.
Tables are not compared: 33 previous and 37 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (51)
Current report
Our net income increased $924,000, or 0.8%, to $119.3 million for the three-month period ended June 30, 2026, from $118.4 million for the same period in 2025. On a diluted earnings per share basis, our earnings were $0.59 per share for the three-month period ended June 30, 2026 compared to $0.60 per share for the three-month period ended June 30, 2025. During the three months ended June 30, 2026, the Company recorded $5.2 million in provision for credit losses on loans. Also, during the three months ended June 30, 2026, the Company recorded $274,000 in BOLI death benefit income, $817,000 in income from the fair value adjustment for marketable securities and $12.7 million in merger and acquisition expense due to the completion of the previously announced acquisition of Mountain Commerce Bancorp, Inc ("MCBI") during the second quarter of 2026. The merger and acquisition expense reduced earnings per share by $0.05 per share for the three-month period ended June 30, 2026.
Current report
Total interest income increased $17.7 million, or 5.6%, total interest expense decreased $4.0 million, or 4.0% and non-interest income increased $2.4 million, or 4.6%. This was partially offset by a $19.5 million, or 16.8%, increase in non-interest expense. The increase in interest income resulted from a $22.0 million, or 8.0%, increase in loan interest income, which was partially offset by a $3.8 million, or 42.6%, decrease in interest income on deposits at other banks and a $472,000, or 1.4%, decrease in investment interest income. The decrease in interest expense was primarily due to a $1.8 million, or 42.8%, decrease in interest on subordinated debentures, a $1.2 million, or 21.5%, decrease in interest on FHLB and other borrowed funds and a $1.1 million, or 1.2%, decrease in interest on deposits. The increase in non-interest income was primarily due to a $1.1 million, or 443.3%, increase in the fair value adjustment for marketable securities, an $875,000, or 16.7%, increase in trust fees, a $478,000, or 5.0%, increase in service charges on deposit accounts, a $330,000, or 2.6%, increase in other service charges and fees and a $319,000, or 2,453.8%, increase in gain (loss) on OREO, which was partially offset by a $969,000, or 99.7%, decrease in gain (loss) on sale of branches, equipment and other assets and a $383,000, or 2.8%, decrease in other income. The increase in non-interest expense was primarily due to the $12.7 million increase in merger and acquisition expense as a result of the acquisition of MCBI, a $4.4 million, or 6.9%, increase in salaries and employee benefits expense, $1.8 million, or 12.6%, increase in occupancy and equipment expense and a $943,000, or 11.3%, increase in data processing expense. These expenses were partially offset by a $403,000, or 1.4%, decrease in other operating expenses.
Current report
Our net interest margin increased from 4.44% for the three-month period ended June 30, 2025 to 4.51% for the three-month period ended June 30, 2026. The yield on interest earning assets decreased from 6.42% for the three months ended June 30, 2025 to 6.26% for the three months ended June 30, 2026, and average interest earning assets increased from $20.08 billion to $21.74 billion. The increase in average interest earning assets is primarily due to a $2.03 billion increase in average loans receivable, partially offset by a $258.6 million decrease in average interest bearing balances due from banks and a $106.9 million decrease in average investment securities. For the three months ended June 30, 2026 and 2025, we recognized $3.6 million and $1.2 million, respectively, in total net accretion for acquired loans and deposits, and average purchase accounting loan discounts were $42.0 million and $16.2 million for the three months ended June 30, 2026 and 2025, respectively. The increase in accretion income along with the increase in the purchase accounting loan discounts, both of which resulted from the acquisition of Mountain Commerce, increased the net interest margin by five basis points for the three-month period ended June 30, 2026. We recognized $1.7 million in event income for the three months ended June 30, 2026 compared to $516,000 for the three months ended June 30, 2025. The increase in event income was accretive to the net interest margin by three basis points. The cost of interest bearing liabilities decreased from 2.73% for the three months ended June 30, 2025 to 2.45% for the three months ended June 30, 2026, and average interest-bearing liabilities increased from $14.58 billion to $15.61 billion. The increase in average interest-bearing liabilities is primarily due to a $1.27 billion increase in average interest-bearing deposits, which was partially offset by a $159.5 million decrease in average subordinated debentures and a $100.3 million decrease in FHLB and other borrowed funds. 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 four basis points. The overall increase in the net interest margin was due to an increase in interest income resulting from the increase in the average balance of interest-earning assets and a decrease in interest expense resulting from a decrease in interest rates paid on interest-bearing liabilities, which were partially offset by a decrease in interest income due to a reduction in asset yields and an increase in interest expense resulting from an increase in the average balance of interest-bearing liabilities.
Current report
Our net interest margin increased from 4.44% for the six-month period ended June 30, 2025 to 4.51% for the six-month period ended June 30, 2026. The yield on interest earning assets decreased from 6.43% for the six-months ended June 30, 2025 to 6.26% for the six-months ended June 30, 2026, and average interest earning assets increased from $19.96 billion to $21.05 billion. The increase in average interest earning assets is primarily due to a $1.41 billion increase in average loans receivable, partially offset by a $157.1 million decrease in average interest-bearing balances due from banks and a $155.0 million decrease in average investment securities. For the six months ended June 30, 2026 and 2025, we recognized $4.7 million and $2.6 million, respectively, in total net accretion for acquired loans and deposits and average purchase accounting loan discounts were $27.3 million and $16.9 million for the six months ended June 30, 2026 and 2025, respectively. The increase in accretion income along with the increase in the purchase accounting loan discounts, both of which resulted from the acquisition of Mountain Commerce, increased the net interest margin by two basis points for the six-month period ended June 30, 2026. We recognized $1.7 million in event income for the six-months ended June 30, 2026 compared to $1.8 million for the six-months ended June 30, 2025. The cost of interest bearing liabilities decreased from 2.74% for the six-months ended June 30, 2025 to 2.43% for the six-months ended June 30, 2026, and average interest-bearing liabilities increased from $14.49 billion to $15.10 billion. The increase in average interest bearing liabilities is primarily due to a $865.5 million increase in average interest-bearing deposits, which was partially offset by a $159.7 million decrease in average subordinated debentures and a $100.3 million decrease in FHLB and other borrowed funds. 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 four basis points. The overall increase in the net interest margin was due to an increase in interest income resulting from the increase in the average balance of interest-earning assets and a decrease in interest expense resulting from a decrease in interest rates paid on interest-bearing liabilities, which were partially offset by a decrease in interest income due to a reduction in asset yields and an increase in interest expense resulting from an increase in the average balance of interest-bearing liabilities.
Current report
Our efficiency ratio was 43.14% for the six months ended June 30, 2026, compared to 41.94% for the same period in 2025. For the six months ended June 30, 2026, our efficiency ratio, as adjusted (non-GAAP), was 41.19%, compared to 42.42% reported for the same period in 2025. (See Table 29 for the non-GAAP tabular reconciliation).
Current report
Critical Accounting Estimates
Current report
Allowance for Credit Losses. We account for credit losses in accordance with ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments("ASC 326" or "CECL"). The allowance for credit losses ("ACL") represents management's estimate of expected credit losses within the Company's loan portfolio and certain off-balance sheet credit exposures. The ACL is inherently subjective because it requires management to make significant assumptions regarding future economic conditions, borrower performance, collateral values, and other factors that may impact collectability.
Current report
For originated and other non-purchased loans, expected credit losses are estimated using a discounted cash flow ("DCF") methodology. The DCF model incorporates assumptions regarding probability of default, loss given default, prepayment speeds, curtailment rates, recovery expectations, and the timing of expected cash flows. The estimate also incorporates reasonable and supportable forecasts of economic conditions, including unemployment rates, gross domestic product, retail sales activity, and the FHFA housing price index.
Current report
Management currently utilizes a four-quarter reasonable and supportable forecast period followed by a four-quarter straight-line reversion to historical loss experience. Changes in economic forecasts, portfolio composition, credit quality trends, collateral values, or other assumptions could result in material changes to the ACL and provision for credit losses.
Current report
The ACL is particularly sensitive to changes in economic forecasts, portfolio risk characteristics, collateral values, and qualitative adjustments. Management regularly evaluates the appropriateness of model assumptions, forecast inputs, and qualitative adjustments in light of changing economic conditions and portfolio performance. Differences between actual economic conditions and forecasted conditions, changes in borrower credit quality, or changes in collateral values may result in material changes to expected credit losses and future provision expense.
Current report
Management also applies qualitative adjustments to address risks not fully captured within the quantitative modeling process. These adjustments may consider changes in lending policies and procedures, portfolio concentrations, delinquency trends, classified assets, collateral values, regulatory factors, and broader economic conditions. Determining the nature and magnitude of these adjustments requires significant management judgment.
Current report
The Company also maintains an allowance for credit losses on off-balance sheet credit exposures, including unfunded loan commitments and other contractual obligations to extend credit that are not unconditionally cancellable. The estimate incorporates management's expectations regarding the likelihood that commitments will be funded, the expected timing of funding, and the expected credit losses associated with amounts anticipated to be funded. Changes in utilization assumptions, borrower credit quality, portfolio composition, or economic conditions may result in material changes to the reserve for off-balance sheet credit exposures.
Current report
Certain loans are evaluated individually, including collateral-dependent loans for which repayment is expected substantially through the operation or sale of collateral. For these loans, estimates regarding collateral values, selling costs, and expected cash flows may have a significant impact on the measurement of expected credit losses.
Current report
Acquisition Accounting and Acquired Loans. Business combinations are accounted for under ASC 805, Business Combinations. Assets acquired and liabilities assumed are recorded at their estimated fair values as of the acquisition date. Determining these fair values requires significant judgment regarding expected future cash flows, discount rates, prepayment assumptions, expected credit losses, and other market participant assumptions.
Current report
Acquired loans are evaluated to determine whether they are classified as purchased credit deteriorated ("PCD") loans or purchased seasoned loans ("PSLs"). The classification of acquired loans and the determination of their acquisition-date fair values require management to assess expected credit performance, future cash flows, economic conditions, and borrower-specific characteristics.
Current report
Under ASC 326, an allowance for credit losses is recognized at acquisition for PCD loans. Following the Company's adoption of ASU 2025-08 effective April 1, 2026, qualifying PSLs are also accounted for using the gross-up approach, whereby an allowance for credit losses is established as of the acquisition date and added to the purchase price to establish the loans' initial amortized cost basis.
Current report
While originated and other non-purchased loans are evaluated using a DCF methodology, qualifying PSLs are measured using an expected loss methodology based on unpaid principal balance in accordance with ASC 326 and ASU 2025-08. Management's estimates of expected losses on acquired loan portfolios are influenced by assumptions regarding borrower performance, expected cash flows, economic conditions, and collateral values. Changes in these assumptions may materially affect the allowance for credit losses and future operating results.
Current report
Because acquisition-date estimates establish the basis for future yield accretion, credit loss estimates, and amortization patterns, changes in assumptions may affect future net interest income, provision expense, and operating results.
Current report
Goodwill and Other Intangible Assets. The Company records goodwill and core deposit intangible assets in connection with business combinations. Goodwill is not amortized but is evaluated for impairment at least annually, or more frequently if events or circumstances indicate that impairment may exist.
Current report
The goodwill impairment analysis requires management to estimate the fair value of the reporting unit. Significant assumptions may include projected earnings, growth rates, market multiples, discount rates, and other factors affecting future operating performance and market valuations. Changes in economic conditions, interest rates, industry conditions, market valuations, or operating performance could affect these assumptions and potentially result in impairment charges.
Current report
Core deposit intangible assets are amortized over their estimated useful lives and evaluated for impairment annually or more often when events or changes in circumstances indicate that their carrying amounts may not be recoverable.
Current report
Income Taxes. The Company accounts for income taxes under ASC 740, Income Taxes. Determining the provision for income taxes and related deferred tax assets and liabilities requires management to make estimates and judgments regarding future taxable income, tax planning strategies, the interpretation and application of tax laws, and the ultimate resolution of tax positions.
Current report
Deferred tax assets are evaluated each reporting period to determine whether it is more likely than not that the related tax benefits will be realized. This assessment requires significant judgment regarding future earnings, the timing and character of taxable income, available tax planning strategies, and other sources of taxable income.
Current report
The Company also evaluates uncertain tax positions and estimates potential exposures associated with tax matters. Changes in tax laws, regulatory interpretations, future operating results, or other factors affecting the realization of deferred tax assets or the recognition of tax benefits could result in adjustments to income tax expense and deferred tax balances in future periods.
Current report
Foreclosed Assets Held for Sale. Foreclosed assets held for sale are initially recorded at fair value less estimated selling costs and are subsequently carried at the lower of carrying value or fair value less estimated selling costs. Fair value estimates generally rely on independent appraisals, broker opinions, comparable sales information, and other market data.
Current report
Significant judgment is required in evaluating property values, market conditions, absorption periods, and estimated selling costs. Changes in real estate market conditions or other valuation assumptions could result in adjustments to the carrying value of foreclosed assets and impact future earnings.
Current report
We opened one branch in Rockwall, Texas during the quarter ended June 30, 2026.
Current report
For the three and six months ended June 30, 2026 and 2025
Current report
Our net income increased $924,000, or 0.8%, to $119.3 million for the three-month period ended June 30, 2026, from $118.4 million for the same period in 2025. On a diluted earnings per share basis, our earnings were $0.59 per share for the three-month period ended June 30, 2026 compared to $0.60 per share for the three-month period ended June 30, 2025. During the three months ended June 30, 2026, the Company recorded $5.2 million in provision for credit losses on loans. Also, during the three months ended June 30, 2026, the Company recorded $274,000 in BOLI death benefit income, $817,000 in income from the fair value adjustment for marketable securities and $12.7 million in merger and acquisition expense due to the completion of the previously announced acquisition of MCBI during the second quarter of 2026. The merger and acquisition expense reduced earnings per share by $0.05 per share for the three-month period ended June 30, 2026.
Current report
Our net interest margin increased from 4.44% for the three-month period ended June 30, 2025 to 4.51% for the three-month period ended June 30, 2026. The yield on interest earning assets decreased from 6.42% for the three-months ended June 30, 2025 to 6.26% for the three-months ended June 30, 2026, and average interest earning assets increased from $20.08 billion to $21.74 billion. The increase in average interest earning assets is primarily due to a $2.03 billion increase in average loans receivable, partially offset by a $258.6 million decrease in average interest bearing balances due from banks and a $106.9 million decrease in average investment securities. For the three months ended June 30, 2026 and 2025, we recognized $3.6 million and $1.2 million, respectively, in total net accretion for acquired loans and deposits, and average purchase accounting loan discounts were $42.0 million and $16.2 million for the three months ended June 30, 2026 and 2025, respectively. The increase in accretion income along with the increase in the purchase accounting loan discounts, both of which resulted from the acquisition of Mountain Commerce, increased the net interest margin by five basis points for the three-month period ended June 30, 2026. We recognized $1.7 million in event income for the three-months ended June 30, 2026 compared to $516,000 for the three-months ended June 30, 2025. The increase in event income was accretive to the net interest margin by three basis points. The cost of interest bearing liabilities decreased from 2.73% for the three-months ended June 30, 2025 to 2.45% for the three-months ended June 30, 2026, and average interest-bearing liabilities increased from $14.58 billion to $15.61 billion. The increase in average interest-bearing liabilities is primarily due to a $1.27 billion increase in average interest-bearing deposits, which was partially offset by a $159.5 million decrease in average subordinated debentures and a $100.3 million decrease in FHLB and other borrowed funds. 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 four basis points. The overall increase in the net interest margin was due to an increase in interest income resulting from the increase in the average balance of interest-earning assets and a decrease in interest expense resulting from a decrease in interest rates paid on interest-bearing liabilities, which were partially offset by a decrease in interest income due to a reduction in asset yields and an increase in interest expense resulting from an increase in the average balance of interest-bearing liabilities.
Current report
Our net interest margin increased from 4.44% for the six-month period ended June 30, 2025 to 4.51% for the six-month period ended June 30, 2026. The yield on interest earning assets decreased from 6.43% for the six-months ended June 30, 2025 to 6.26% for the six-months ended June 30, 2026, and average interest earning assets increased from $19.96 billion to $21.05 billion. The increase in average interest earning assets is primarily due to a $1.41 billion increase in average loans receivable, partially offset by a $157.1 million decrease in average interest-bearing balances due from banks and a $155.0 million decrease in average investment securities. For the six months ended June 30, 2026 and 2025, we recognized $4.7 million and $2.6 million, respectively, in total net accretion for acquired loans and deposits and average purchase accounting loan discounts were $27.3 million and $16.9 million for the six months ended June 30, 2026 and 2025, respectively. The increase in accretion income along with the increase in the purchase accounting loan discounts, both of which resulted from the acquisition of Mountain Commerce, increased the net interest margin by two basis points for the six-month period ended June 30, 2026. We recognized $1.7 million in event income for the six-months ended June 30, 2026 compared to $1.8 million for the six-months ended June 30, 2025. The cost of interest bearing liabilities decreased from 2.74% for the six-months ended June 30, 2025 to 2.43% for the six-months ended June 30, 2026, and average interest-bearing liabilities increased from $14.49 billion to $15.10 billion. The increase in average interest bearing liabilities is primarily due to a $865.5 million increase in average interest-bearing deposits, which was partially offset by a $159.7 million decrease in average subordinated debentures and a $100.3 million decrease in FHLB and other borrowed funds. 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 four basis points. The overall increase in the net interest margin was due to an increase in interest income resulting from the increase in the average balance of interest-earning assets and a decrease in interest expense resulting from a decrease in interest rates paid on interest-bearing liabilities, which were partially offset by a decrease in interest income due to a reduction in asset yields and an increase in interest expense resulting from an increase in the average balance of interest-bearing liabilities.
Current report
Non-interest income increased $2.4 million, or 4.6%, to $53.5 million for the three months ended June 30, 2026 from $51.1 million for the same period in 2025. The primary factors in this increase were the increases in service charges on deposit accounts, trust fees and fair value adjustment for marketable securities, which was partially offset by the decrease in gain (loss) on sale of branches, equipment and other assets, net.
Current report
•The $478,000 increase in service charges on deposit accounts is primarily related to an increase in overdraft fees as well as the acquisition of MCBI.
Current report
•The $969,000 decrease in gain (loss) on sale of branches, equipment and other assets, net is primarily due to the sale of a company airplane in 2025.
Current report
Additional details for the six months ended June 30, 2026 on some of the more significant changes are as follows:
Current report
•The $835,000 increase in service charges on deposit accounts is primarily related to an increase in overdraft fees as well as the acquisition of MCBI.
Current report
•The $813,000 decrease in gain (loss) on sale of branches, equipment and other assets, net is primarily due to the sale of a company airplane in 2025.
Current report
•The $1.8 million increase in occupancy and equipment expense is due to an increase in depreciation expense on buildings, machinery and equipment related to the acquisition of MCBI.
Current report
•The $943,000 increase in data processing expense is due to an increase in core processing computer expense related to the acquisition of MCBI.
Current report
•The $12.7 million increase in merger and acquisition expense is related to costs associated with the acquisition of MCBI.
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Removed paragraphs (48)
Previous report
Our net interest margin increased from 4.44% for the three-month period ended March 31, 2025 to 4.51% for the three-month period ended March 31, 2026. The yield on interest earning assets decreased from 6.45% for the three-months ended March 31, 2025 to 6.25% for the three-months ended March 31, 2026, and average interest earning assets increased from $19.83 billion to $20.35 billion. The increase in average interest earning assets is primarily due to a $786.7 million increase in average loans receivable, partially offset by a $203.5 million decrease in average investment securities and a $54.5 million decrease in average interest-bearing balances due from banks. For the three months ended March 31, 2026 and 2025, we recognized $1.1 million and $1.4 million, respectively, in total net accretion for acquired loans and deposits. We recognized no event income for the three-months ended March 31, 2026 compared to $1.3 million for the three-months ended March 31, 2025. The cost of interest bearing liabilities decreased from 2.76% for the three-months ended March 31, 2025 to 2.42% for the three-months ended March 31, 2026, and average interest-bearing liabilities increased from $14.40 billion to $14.60 billion. The increase in average interest-bearing liabilities is primarily due to a $460.3 million increase in average interest-bearing deposits, which was partially offset by a $159.8 million decrease in average subordinated debentures and a $100.4 million decrease in FHLB and other borrowed funds. 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 four basis points. The overall increase in the net interest margin was due to an increase in interest income resulting from the increase in the average balance of interest-earning assets and a decrease in interest expense resulting from a decrease in interest rates paid on interest-bearing liabilities, which were partially offset by a decrease in interest income due to a reduction in asset yields and an increase in interest expense resulting from an increase in the average balance of interest-bearing liabilities.
Previous report
Critical Accounting Policies and Estimates
Previous report
Credit Losses. We account for credit losses in accordance with ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments("ASC 326" or "CECL"). The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with Topic 842 on leases.
Previous report
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 report
Investments – Held-to-Maturity. Debt securities held-to-maturity ("HTM"), which include any security for which we have the positive intent and ability to hold until maturity, are reported at historical cost adjusted for amortization of premiums and accretion of discounts. Premiums and discounts are amortized/accreted to the call date to interest income using the constant effective yield method over the estimated life of the security. 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 measures expected credit losses on HTM securities on a collective basis by major security type, with each type sharing similar risk characteristics. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The Company has made the election to exclude accrued interest receivable on HTM 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.
Previous report
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 report
The allowance for credit losses on loans receivable is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the uncollectability of a loan balance is confirmed and expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off.
Previous report
The Company uses the discounted cash flow ("DCF") method to estimate expected losses for all of the Company’s loan pools. These pools are as follows: construction & land development; other commercial real estate; residential real estate; commercial & industrial; and consumer & other. The loan portfolio pools were selected in order to generally align with the loan categories specified in the quarterly call reports required to be filed with the Federal Financial Institutions Examination Council. For each of these loan pools, the Company generates cash flow projections at the instrument level wherein payment expectations are adjusted for estimated prepayment speed, curtailments, time to recovery, probability of default, and loss given default. The modeling of expected prepayment speeds, curtailment rates, and time to recovery are based on historical internal data. The Company uses regression analysis of historical internal and peer data to determine suitable loss drivers to utilize when modeling lifetime probability of default and loss given default. This analysis also determines how expected probability of default and loss given default will react to forecasted levels of the loss drivers.
Previous report
For all DCF models, management has determined that four quarters represents a reasonable and supportable forecast period and reverts to a historical loss rate over four quarters on a straight-line basis. Management leverages economic projections from a reputable and independent third party to inform its loss driver forecasts over the four-quarter forecast period. Other internal and external indicators of economic forecasts are also considered by management when developing the forecast metrics.
Previous report
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 report
The allowance for credit losses is measured based on call report segment as these types of loans exhibit similar risk characteristics. The identified loan segments are as follows:
Previous report
•1-4 family residential construction loans
Previous report
•Other construction loans and all land development and other land loans
Previous report
•Loans secured by farmland (including farm residential and other improvements)
Previous report
•Revolving, open-end loans secured by 1-4 family residential properties and extended under lines
Previous report
•Secured by first liens
Previous report
•Secured by junior liens
Previous report
•Secured by multifamily (5 or more) residential properties
Previous report
•Loans secured by owner-occupied, nonfarm nonresidential properties
Previous report
•Loans secured by other nonfarm nonresidential properties
Previous report
•Loans to finance agricultural production and other loans to farmers
Previous report
•Commercial and industrial loans
Previous report
•Other revolving credit plans
Previous report
•Automobile loans
Previous report
•Other consumer loans
Previous report
•Other consumer loans - Shore Premier Finance
Previous report
•Obligations (other than securities and leases) of states and political subdivisions in the US
Previous report
•Loans to nondepository financial institutions
Previous report
•Loans for purchasing or carrying securities
Previous report
•All other loans
Previous report
•Leases
Previous report
Loans considered to be collateral dependent, according to ASC 326, are loans for which repayment is expected to be provided substantially through the operation or sale of the collateral when the borrower is experiencing financial difficulty based on the Company's assessment as of the reporting date. The aggregate amount of collateral shortfall on such loans is utilized in evaluating the adequacy of the allowance for credit losses and amount of provisions thereto. Losses on collateral dependent loans are charged against the allowance for credit losses when in the process of collection, it appears likely that such losses will be realized. The accrual of interest on collateral dependent loans is discontinued when, in management’s opinion the collection of interest is doubtful or generally when loans are 90 days or more past due. When accrual of interest is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.
Previous report
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 report
Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments and curtailments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies:
Previous report
•Management has a reasonable expectation at the reporting date that restructured loans made to borrowers experiencing financial difficulty will be executed with an individual borrower.
Previous report
•The extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company.
Previous report
Management qualitatively adjusts model results for risk factors that are not considered within our modeling processes but are nonetheless relevant in assessing the expected credit losses within our loan pools. These qualitative factors ("Q-Factors") and other qualitative adjustments may increase or decrease management's estimate of expected credit losses by a calculated percentage or amount based upon the estimated level of risk. The various risks that may be considered in making Q-Factor and other qualitative adjustments include, among other things, the impact of (i) changes in lending policies, procedures and strategies; (ii) changes in nature and volume of the portfolio; (iii) staff experience; (iv) changes in volume and trends in classified loans, delinquencies and nonaccruals; (v) concentration risk; (vi) trends in underlying collateral values; (vii) external factors such as competition, legal and regulatory environment; (viii) changes in the quality of the loan review system and (ix) economic conditions.
Previous report
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 report
Allowance for Credit Losses on Off-Balance Sheet Credit Exposures. The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on off-balance sheet credit exposures is adjusted as a provision for or reversal of credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life.
Previous report
Foreclosed Assets Held for Sale. Real estate and personal property acquired through or in lieu of loan foreclosure are to be sold and are initially recorded at fair value at the date of foreclosure, establishing a new cost basis. Valuations are periodically performed by management, and the real estate and personal property are carried at fair value less costs to sell. Gains and losses from the sale of other real estate and personal property are recorded in non-interest income, and expenses used to maintain the properties are included in non-interest expenses.
Showing the first 40 of 48 passages. Open the source sections for the rest.
Reworded paragraphs (72)
Previous wording
We are a bank holding company headquartered in Conway, Arkansas, offering a broad array of financial services through our wholly-owned bank subsidiary, Centennial Bank (sometimes referred to as "Centennial" or the "Bank"). As of March 31, 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.
Current wording
We are a bank holding company headquartered in Conway, Arkansas, offering a broad array of financial services through our wholly-owned bank subsidiary, Centennial Bank (sometimes referred to as "Centennial" or the "Bank"). As of June 30, 2026, we had, on a consolidated basis, total assets of $24.71 billion, loans receivable, net of allowance for credit losses, of $16.80 billion, total deposits of $19.11 billion, and stockholders’ equity of $4.55 billion.
Previous 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).
Current wording
Our efficiency ratio was 44.54% for the three months ended June 30, 2026, compared to 41.68% for the same period in 2025. For the three months ended June 30, 2026, our efficiency ratio, as adjusted (non-GAAP), was 40.46%, compared to 42.01% reported for the same period in 2025. (See Table 29 for the non-GAAP tabular reconciliation).
Previous 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).
Current wording
Our annualized return on average assets was 1.95% for the three months ended June 30, 2026, compared to 2.08% 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 10.55% and 11.77% for the three months ended June 30, 2026, and 2025, respectively. (See Table 27 for the related non-GAAP financial measures and tabular reconciliation).
Previous wording
Our net income increased $3.0 million, or 2.6%, to $118.2 million for the three-month period ended March 31, 2026, from $115.2 million for the same period in 2025. On a diluted earnings per share basis, our earnings were $0.60 per share for the three-month period ended March 31, 2026 compared to $0.58 per share for the three-month period ended March 31, 2025. 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 recorded $1.7 million in income from an FDIC special assessment credit, $1.2 million in expense from the fair value adjustment for marketable securities and $394,000 in merger and acquisition expense.
Current wording
Our net income increased $3.9 million, or 1.7%, to $237.5 million for the six-month period ended June 30, 2026, from $233.6 million for the same period in 2025. On a diluted earnings per share basis, our earnings were $1.19 per share for the six-month period ended June 30, 2026 compared to $1.18 per share for the six-month period ended June 30, 2025. During the six months ended June 30, 2026, the Company recorded $6.7 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 six-month period ended June 30, 2026 was $5.7 million. During the six months ended June 30, 2026, the Company recorded $1.7 million in income from an FDIC special assessment credit, $274,000 in BOLI death benefits, $431,000 in expense from the fair value adjustment for marketable securities and $13.1 million in merger and acquisition expense due to the completion of the previously announced acquisition of MCBI during the second quarter of 2026. The merger and acquisition expense reduced earnings per share by $0.05 per share for the six-month period ended June 30, 2026.
Previous 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.
Current wording
Total interest income increased $16.2 million, or 2.6%, interest expense decreased $14.7 million, or 7.5%. This was partially offset by a $20.5 million, or 9.0%, increase in non-interest expense and a $248,000, or 0.3%, decrease in non-interest income. The increase in interest income resulted from a $24.7 million, or 4.5%, increase in loan interest income which was partially offset by a $5.5 million, or 35.3%, decrease in interest income on deposits at other banks and a $3.0 million, or 4.3%, decrease in investment interest income. The decrease in interest expense was primarily due to a $8.7 million, or 5.0%, decrease in interest on deposits, a $3.5 million, or 42.9%, decrease in interest on subordinated debentures, and a $2.4 million, or 21.0%, decrease in interest on FHLB and other borrowed funds. The decrease in non-interest income was primarily due to a $2.7 million, or 10.9%, decrease in other income, an $813,000, or 100.5%, decrease in gain (loss) on sale of branches, equipment and other assets, a $635,000, or 311.3%, decrease in the fair value adjustment for marketable securities and a $549,000, or 2.4%, decrease in other service charges and fees, which was partially offset by a $1.6 million, or 16.0%, increase in trust fees, a $1.4 million, or 386.2%, increase in gain (loss) on OREO and a $1.2 million, or 14.2%, increase in mortgage lending income. Included within June 30, 2025 other income was $7.4 million in special income from equity investments, $885,000 in legal expense reimbursements and $1.2 million in BOLI death benefit income. The increase in non-interest expense was primarily due to the $13.1 million increase in merger and acquisition expense as a result of the acquisition of MCBI, a $5.8 million, or 4.6%, increase in salaries and employee benefits expense, $2.2 million, or 7.8%, increase in occupancy and equipment expense and a $1.3 million, or 7.5%, increase in data processing expense. These expenses were partially offset by a $1.9 million, or 3.3%, decrease in other operating expenses. Included within other operating expenses was the $1.7 million in FDIC special assessment credits recorded during the first quarter of 2026.
Previous 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.
Current wording
Our total assets, as of June 30, 2026, increased $1.83 billion to $24.71 billion from $22.88 billion reported as of December 31, 2025. The increase in total assets is primarily due to the acquisition of $1.77 billion in total assets, net of purchase accounting adjustments, from MCBI during the second quarter of 2026. Cash and cash equivalents increased $385.2 million for the six months ended June 30, 2026. Our loan portfolio balance increased to $17.13 billion, as of June 30, 2026, from $15.69 billion at December 31, 2025. The increase in loans was primarily due to the acquisition of $1.47 billion in loans, net of purchase accounting adjustments, from MCBI during the second quarter of 2026 and $25.3 million of organic loan growth from our Centennial Commercial Finance Group ("Centennial CFG") franchise , which was partially offset by $54.1 million of loan decline in our community banking footprint. Investment securities decreased by $100.2 million resulting from paydowns and maturities during the first six months of 2026. Total deposits increased $1.63 billion to $19.11 billion as of June 30, 2026 from $17.48 billion as of December 31, 2025. The increase in deposits was primarily due to the acquisition of $1.54 billion in deposits, net of purchase accounting adjustments, from MCBI during the second quarter of 2026. Stockholders’ equity increased $250.6 million to $4.55 billion as of June 30, 2026, compared to $4.30 billion as of December 31, 2025. The $250.6 million increase in stockholders’ equity is primarily associated with the $146.0 million in common stock issued to MCBI shareholders for the acquisition of MCBI on April 1, 2026 and the $237.5 million in net income for the six months ended June 30, 2026, partially offset by the $83.5 million in shareholder dividends paid, stock repurchases of $54.7 million and $3.1 million in other comprehensive loss.
Previous wording
Our non-performing loans were $182.1 million, or 1.16% of total loans as of March 31, 2026, compared to $85.0 million, or 0.54% of total loans, as of December 31, 2025. The allowance for credit losses as a percentage of non-performing loans decreased to 163.43% as of March 31, 2026, from 350.17% as of December 31, 2025. As of March 31, 2026, our non-performing assets increased to $224.1 million, or 0.97% of total assets, from $124.8 million, or 0.55% of total assets, as of December 31, 2025. The increase in non-performing loans and assets was primarily due to one loan relationship with a balance of $92.1 million being placed on non-accrual status during the quarter ended March 31, 2026.
Current wording
Our non-performing loans were $185.3 million, or 1.08% of total loans as of June 30, 2026, compared to $85.0 million, or 0.54% of total loans, as of December 31, 2025. The allowance for credit losses as a percentage of non-performing loans decreased to 177.19% as of June 30, 2026, from 350.17% as of December 31, 2025. As of June 30, 2026, our non-performing assets increased to $228.6 million, or 0.93% of total assets, from $124.8 million, or 0.55% of total assets, as of December 31, 2025. The increase in non-performing loans and assets was primarily due to one loan relationship with a balance of $92.1 million being placed on non-accrual status during the quarter ended March 31, 2026.
Previous wording
Overview. We prepare our consolidated financial statements based on the selection of certain accounting policies, generally accepted accounting principles and customary practices in the banking industry. These policies, in certain areas, require us to make significant estimates and assumptions. Our accounting policies are described in detail in the notes to our consolidated financial statements included as part of this document.
Current wording
Overview. We prepare our consolidated financial statements based on the selection of certain accounting policies, generally accepted accounting principles and customary practices in the banking industry. These policies, in certain areas, require us to make significant estimates and assumptions. Our accounting policies are described in detail in Note 1 to our consolidated financial statements included as part of this document.
Previous wording
We consider a policy critical if (i) the accounting estimate requires assumptions about matters that are highly uncertain at the time of the accounting estimate; and (ii) different estimates that could reasonably have been used in the current period, or changes in the accounting estimate that are reasonably likely to occur from period to period, would have a material impact on our financial statements. Using these criteria, we believe that the accounting policies most critical to us are those associated with our lending practices, including the accounting for the allowance for credit losses, foreclosed assets, investments, intangible assets, income taxes and stock options.
Current wording
We consider an accounting estimate to be critical if (i) the accounting estimate requires assumptions about matters that are highly uncertain at the time of the accounting estimate; and (ii) different estimates that could reasonably have been used in the current period, or changes in the accounting estimate that are reasonably likely to occur from period to period, would have a material impact on our financial statements. Management has identified the following accounting estimates as the most critical to the understanding of the Company's financial statements.
Previous wording
As of March 31, 2026, 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.
Current wording
As of June 30, 2026, we had 227 branch locations. There were 75 branches in Arkansas, 78 branches in Florida, 60 branches in Texas, eight branches in Tennessee, five branches in Alabama and one branch in New York City.
Previous wording
Our net income increased $3.0 million, or 2.6%, to $118.2 million for the three-month period ended March 31, 2026, from $115.2 million for the same period in 2025. On a diluted earnings per share basis, our earnings were $0.60 per share for the three-month period ended March 31, 2026 compared to $0.58 per share for the three-month period ended March 31, 2025. 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 recorded $1.7 million in income from an FDIC special assessment credit, $1.2 million in expense from the fair value adjustment for marketable securities and $394,000 in merger and acquisition expense.
Current wording
Our net income increased $3.9 million, or 1.7%, to $237.5 million for the six-month period ended June 30, 2026, from $233.6 million for the same period in 2025. On a diluted earnings per share basis, our earnings were $1.19 per share for the six-month period ended June 30, 2026 compared to $1.18 per share for the six-month period ended June 30, 2025. During the six months ended June 30, 2026, the Company recorded $6.7 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 six-month period ended June 30, 2026 was $5.7 million. During the six months ended June 30, 2026, the Company recorded $1.7 million in income from an FDIC special assessment credit, $274,000 in BOLI death benefits, $431,000 in expense from the fair value adjustment for marketable securities and $13.1 million in merger and acquisition expense due to the completion of the previously announced acquisition of MCBI during the second quarter of 2026. The merger and acquisition expense reduced earnings per share by $0.05 per share for the six-month period ended June 30, 2026.
Previous 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.
Current wording
Net interest income on a fully taxable equivalent basis increased $21.8 million, or 9.8%, to $244.3 million for the three-month period ended June 30, 2026, from $222.5 million for the same period in 2025. This increase in net interest income for the three-month period ended June 30, 2026 was the result of a $17.8 million increase in interest income, on a fully taxable equivalent basis and a $4.0 million decrease in interest expense. The $17.8 million increase in interest income was primarily the result of the increase in average interest earning asset balances primarily due to the acquisition of MCBI during the second quarter of 2026, partially offset by the impact of the lower interest rate environment. The change in average interest earning asset balances resulted in an increase of $32.4 million in interest income, which was partially offset by a decrease of $14.6 million in interest income due to the lower yield on earning assets. The $4.0 million decrease in interest expense is also primarily the result of the lower interest rate environment. The lower rates on interest bearing liabilities resulted in a decrease in interest expense of approximately $10.4 million, partially offset by an increase in average interest bearing liabilities which increased interest expense by approximately $6.4 million.
Previous wording
Tables 2 and 3 reflect an analysis of net interest income on a fully taxable equivalent basis for the three months ended March 31, 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.
Current wording
Tables 2 and 3 reflect an analysis of net interest income on a fully taxable equivalent basis for the three and six months ended June 30, 2026 and 2025, as well as changes in the fully taxable equivalent net interest margin for the three and six months ended June 30, 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 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.
Current wording
Table 4 shows, for each major category of earning assets and interest-bearing liabilities, the average amount outstanding, the interest income or expense on that amount and the average rate earned or expensed for the three and six months ended June 30, 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 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.
Current wording
Table 5 shows changes in interest income and interest expense resulting from changes in volume and changes in interest rates for the three and six months ended June 30, 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 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.
Current wording
Credit Loss Expense: During the three and six months ended June 30, 2026, the Company recorded $5.2 million and $6.7 million in provision for credit losses on loans, respectively. Management determined no provision, or recovery of credit losses, was necessary for the unfunded commitments during the three months ended June 30, 2026. However, for the six months ended June 30, 2026, the Company recorded a $1.0 million recovery of credit losses on unfunded commitments. During the three and six months ended June 30, 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
During the three months ended March 31, 2025, the Company did not record a provision for credit losses on loans primarily due to the $4.1 million in net recoveries experienced during the quarter. After considering the recoveries, management determined the level of the allowance for credit losses on loans was adequate. In addition, management determined that a provision was not necessary for the unfunded commitments as the current level of the reserve was considered adequate. During the three months ended March 31, 2025, the Company determined the $2.2 million allowance for credit losses on the available for sale portfolio and the $2.0 million allowance for credit losses on the held-to-maturity portfolio was adequate. Therefore, no additional provision was considered necessary.
Current wording
During the three and six months ended June 30, 2025, the Company 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, 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.
Previous 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.
Current wording
Net charge-offs to average total loans were 0.14% and 0.03% for the three months ended June 30, 2026 and 2025, respectively. Net charge-offs (recoveries) to average total loans were 0.09% and (0.04)% for the six months ended June 30, 2026 and 2025, respectively.
Previous 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.
Current wording
Total non-interest income was $53.5 million and $96.3 million for the three and six months ended June 30, 2026, compared to $51.1 million and $96.5 million for the same periods 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 months ended March 31, 2026 and 2025.
Current wording
Table 6 measures the various components of our non-interest income for the three and six months ended June 30, 2026 and 2025.
Previous wording
•The $722,000 increase in trust fees is primarily due to an increase in personal trust and IRA fees.
Current wording
•The $875,000 increase in trust fees is primarily due to an increase in personal trust and IRA fees.
Previous 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.
Current wording
Non-interest income decreased $248,000, or 0.26%, to $96.3 million for the six months ended June 30, 2026 from $96.5 million for the same period in 2025. The primary factors in this decrease were the decreases in other service charges and fees, gain (loss) on sale of branches, equipment and other assets, net, fair value adjustment for marketable securities and other income, which were partially offset by the increases in services charges on deposit accounts, trust fees, mortgage lending income and the gain (loss) on OREO, net.
Previous wording
•The $879,000 decrease in other service charges and fees is primarily related to a decrease in Centennial CFG property finance loan fees.
Current wording
•The $549,000 decrease in other service charges and fees is primarily related to a decrease in Centennial CFG property finance loan fees, FIS Mastercard income and dealer floor fees.
Previous wording
•The $831,000 increase in mortgage lending income is primarily due to an increase in volume of secondary market loans.
Current wording
•The $1.2 million increase in mortgage lending income is primarily due to an increase in volume of secondary market loans.
Previous 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.
Current wording
•The $1.4 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 $1.7 million decrease in the fair value adjustment for marketable securities is due to market fluctuations.
Current wording
•The $635,000 decrease in the fair value adjustment for marketable securities is due to market fluctuations.
Previous wording
•The $2.3 million decrease in other income is primarily due to a $3.6 million decrease in income from the fair value of equity securities and a $923,000 decrease in recoveries on historic losses, partially offset by a $1.9 million increase in miscellaneous income primarily from various tax refunds.
Current wording
•The $2.7 million decrease in other income is primarily due to a $3.9 million decrease in income from the fair value of equity securities, a $968,000 decrease in BOLI death benefit income and a $498,000 decrease in recoveries on historic losses, partially offset by a $1.1 million increase in investment brokerage fee income and a $1.1 million increase in miscellaneous income primarily from various tax refunds.
Previous wording
Table 7 below sets forth a summary of non-interest expense for the three months ended March 31, 2026 and 2025.
Current wording
Table 7 below sets forth a summary of non-interest expense for the three and six months ended June 30, 2026 and 2025.
Previous 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.
Current wording
Non-interest expense increased $19.5 million, or 16.8%, to $135.5 million for the three months ended June 30, 2026 from $116.0 million for the same period in 2025. The primary factors that resulted in this increase were the increases in salaries and employee benefits, occupancy and equipment expense, data processing expense, merger and acquisition expense, amortization of intangibles and FDIC and state assessment expense, which were partially offset by the decreases in legal and accounting expense and other expenses.
Previous 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.
Current wording
•The $4.4 million increase in salaries and employee benefits expense is primarily due to the MCBI acquisition as well as 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 $2.7 million decrease in legal and accounting expense is primarily due to legal matters which occurred during 2025.
Current wording
•The $3.6 million decrease in legal and accounting expense is primarily due to legal matters which occurred during 2025.
Previous 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.
Current wording
Income tax expense increased $1.5 million, or 4.4%, to $35.1 million for the three-month period ended June 30, 2026, from $33.6 million for the same period in 2025. Income tax expense increased $3.6 million, or 5.4%, to $69.1 million for the six-month period ended June 30, 2026, from $65.5 million for the same period in 2025. The effective income tax rate was 22.72% and 22.53% for the three and six months ended June 30, 2026, compared to 22.10% and 21.91% for the same periods in 2025. The marginal tax rate was 24.359% and 24.433% for 2026 and 2025, respectively.
Previous 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.
Current wording
Our total assets, as of June 30, 2026, increased $1.83 billion to $24.71 billion from $22.88 billion reported as of December 31, 2025. The increase in total assets is primarily due to the acquisition of $1.77 billion in total assets, net of purchase accounting adjustments, from MCBI during the second quarter of 2026. Cash and cash equivalents increased $385.2 million for the six months ended June 30, 2026. Our loan portfolio balance increased to $17.13 billion, as of June 30, 2026, from $15.69 billion at December 31, 2025. The increase in loans was primarily due to the acquisition of $1.47 billion in loans, net of purchase accounting adjustments, from MCBI during the second quarter of 2026 and $25.3 million of organic loan growth from our Centennial CFG franchise , which was partially offset by $54.1 million of loan decline in our community banking footprint. Investment securities decreased by $100.2 million resulting from paydowns and maturities during the first six months of 2026. Total deposits increased $1.63 billion to $19.11 billion as of June 30, 2026 from $17.48 billion as of December 31, 2025. The increase in deposits was primarily due to the acquisition of $1.54 billion in deposits, net of purchase accounting adjustments, from MCBI during the second quarter of 2026. Stockholders’ equity increased $250.6 million to $4.55 billion as of June 30, 2026, compared to $4.30 billion as of December 31, 2025. The $250.6 million increase in stockholders’ equity is primarily associated with the $146.0 million in common stock issued to MCBI shareholders for the acquisition of MCBI on April 1, 2026 and the $237.5 million in net income for the six months ended June 30, 2026, partially offset by the $83.5 million in shareholder dividends paid, stock repurchases of $54.7 million and $3.1 million in other comprehensive loss.
Previous 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.
Current wording
Our loan portfolio averaged $17.08 billion and $15.06 billion during the three months ended June 30, 2026 and 2025, respectively. Our loan portfolio averaged $16.39 billion and $14.98 billion during the six months ended June 30, 2026 and 2025, respectively. Loans receivable were $17.13 billion and $15.69 billion as of June 30, 2026 and December 31, 2025, respectively.
Previous 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.
Current wording
From December 31, 2025 to June 30, 2026, the Company experienced an increase of approximately $1.44 billion in loans. The increase in loans was due to the acquisition of $1.47 billion in loans, net of purchase accounting adjustments, from MCBI during the second quarter of 2026 and $25.3 million of organic loan growth from our Centennial CFG franchise, which was partially offset by $54.1 million of loan decline in our community banking footprint.
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 $3.74 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.
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, Tennessee, Alabama and Centennial CFG, the property securing these loans may not physically be located within our market areas of Arkansas, Florida, Texas, Tennessee, Alabama and New York. Loans receivable were approximately $3.93 billion, $4.38 billion, $3.83 billion, $1.47 billion, $98.4 million, $1.39 billion and $2.04 billion as of June 30, 2026 in Arkansas, Florida, Texas, Tennessee, Alabama, SPF and Centennial CFG, respectively.
Previous 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.
Current wording
As of June 30, 2026, commercial real estate ("CRE") loans totaled $9.03 billion, or 52.7%, 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, Tennessee, Alabama, SPF and Centennial CFG markets were $2.26 billion, $2.67 billion, $1.86 billion, $740.2 million, $46.0 million, zero and $1.46 billion at June 30, 2026, respectively.
Previous 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.
Current wording
As of June 30, 2026, we had approximately $1.30 billion of construction/land development loans which were collateralized by land. This consisted of approximately $34.9 million for raw land and approximately $1.27 billion for land with commercial and/or residential lots.
Previous 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.
Current wording
(2) Excludes multi-family residential loans of $1.27 billion and $1.14 billion as of June 30, 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 $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.
Current wording
(2) Excludes multi-family residential loans of $1.27 billion and $1.14 billion as of June 30, 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.
Showing the first 40 of 72 pairs. Open the source sections for the rest.
Rearranged current paragraphs (7)
Current report — wording carried from elsewhere
Results of Operations for the Six Months Ended June 30, 2026 and 2025
Current report — wording carried from elsewhere
Our annualized return on average assets was 2.02% for the six months ended June 30, 2026, compared to 2.08% 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 10.78% and 11.76% for the six months ended June 30, 2026, and 2025, respectively. (See Table 27 for the related non-GAAP financial measures and tabular reconciliation).
Current report — wording carried from elsewhere
Net interest income on a fully taxable equivalent basis increased $31.2 million, or 7.1%, to $470.9 million for the six-month period ended June 30, 2026, from $439.7 million for the same period in 2025. This increase in net interest income for the six-month period ended June 30, 2026 was the result of a $16.5 million increase in interest income, on a fully taxable equivalent basis and a $14.7 million decrease in interest expense. The $16.5 million increase in interest income was primarily the result of the increase in average interest earning asset balances primarily due to the acquisition of MCBI during the second quarter of 2026, partially offset by the impact of the lower interest rate environment. The change in average interest earning asset balances resulted in an increase of $44.2 million in interest income, which was partially offset by a decrease of $27.8 million in interest income due to the lower yield on earning assets. The $14.7 million decrease in interest expense is also 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 $21.6 million, partially offset by an increase in average interest bearing liabilities which increased interest expense by approximately $6.9 million.
Current report — wording carried from elsewhere
•The $1.1 million increase in the fair value adjustment for marketable securities is due to market fluctuations.
Current report — wording carried from elsewhere
•The $1.6 million increase in trust fees is primarily due to an increase in personal trust and IRA fees.
Current report — wording carried from elsewhere
•The $934,000 decrease in legal and accounting expense is primarily due to legal matters which occurred during 2025.
Current report — wording carried from elsewhere
•The $5.8 million increase in salaries and employee benefits expense is primarily due to the MCBI acquisition as well as an increase in incentive compensation as a result of an increase in revenue for the Company combined with the additional costs of doing business.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
The Company has purchased loans, some of which have experienced more than insignificant credit deterioration since origination. Purchase credit deteriorated ("PCD") loans are recorded at the amount paid. An allowance for credit losses is determined using the same methodology as other loans. The initial allowance for credit losses determined on a collective basis is allocated to individual loans. The sum of the loan’s purchase price and allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the allowance for credit losses are recorded through the provision for credit loss.
Previous report — wording carried elsewhere
For the three months ended March 31, 2026 and 2025