HOME BANCSHARES INC

Previous wording

We are a bank holding company headquartered in Conway, Arkansas, offering a broad array of financial services through our wholly-owned bank subsidiary, Centennial Bank (sometimes referred to as "Centennial" or the "Bank"). As of 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.

Current wording

We are a bank holding company headquartered in Conway, Arkansas, offering a broad array of financial services through our wholly-owned bank subsidiary, Centennial Bank (sometimes referred to as "Centennial" or the "Bank"). As of September 30, 2026, we had, on a consolidated basis, total assets of $24.15 billion, loans receivable, net of allowance for credit losses, of $16.58 billion, total deposits of $18.76 billion, and stockholders’ equity of $4.53 billion.

Previous wording

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 wording

Total interest income increased $11.4 million, or 3.5%, and total interest expense decreased $4.5 million, or 4.6%. This was partially offset by a $6.7 million, or 5.8%, increase in non-interest expense and a $5.1 million, or 9.8%, decrease in non-interest income. The increase in interest income resulted from a $15.5 million, or 5.5%, increase in loan interest income, which was partially offset by a $2.7 million, or 43.2%, decrease in interest income on deposits at other banks and a $1.4 million, or 4.1%, decrease in investment interest income. The decrease in interest expense was primarily due to a $2.1 million, or 39.5%, decrease in interest on FHLB and other borrowed funds, a $1.7 million, or 1.9%, decrease in interest on deposits and a $648,000, or 21.5%, decrease in interest on subordinated debentures. The increase in non-interest expense was primarily due a $3.8 million, or 6.0%, increase in salaries and employee benefits expense, a $1.6 million, or 5.8%, increase in other operating expenses and a $991,000, or 6.7%, increase in occupancy and equipment expense and a $316,000, or 3.6%, increase in data processing expense. The decrease in non-interest income was primarily due to a $2.3 million, or 16.6%, decrease in other income, a $1.9 million, or 189.8%, decrease in the fair value adjustment for marketable securities, a $908,000, or 19.4%, decrease in mortgage lending income, a $631,000, or 13.7%, decrease in trust fees, a $122,000, or 1.0%, decrease in other service charges and fees, and an $83,000, or 0.8%, decrease in service charges on deposit accounts, which were partially offset by an $810,000, or 1,227.3%, increase in gain (loss) on sale of branches, equipment and other assets, a $126,000, or 9.0%, increase in cash value of life insurance and an $82,000, or 8,200.0%, increase in gain (loss) on OREO.

Previous 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).

Current wording

Our efficiency ratio was 40.78% for the three months ended September 30, 2026, compared to 40.21% for the same period in 2025. For the three months ended September 30, 2026, our efficiency ratio, as adjusted (non-GAAP), was 40.84%, compared to 40.95% 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 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).

Current wording

Our annualized return on average assets was 2.12% for the three months ended September 30, 2026, compared to 2.17% 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 11.24% and 11.91% for the three months ended September 30, 2026, and 2025, respectively. (See Table 27 for the related non-GAAP financial measures and tabular reconciliation).

Previous wording

Results of Operations for the Six Months Ended June 30, 2026 and 2025

Current wording

Results of Operations for the Nine Months Ended September 30, 2026 and 2025

Previous 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.

Current wording

Our net income increased $9.8 million, or 2.7%, to $367.0 million for the nine-month period ended September 30, 2026, from $357.2 million for the same period in 2025. On a diluted earnings per share basis, our earnings were $1.84 per share for the nine-month period ended September 30, 2026, compared to $1.80 per share for the nine-month period ended September 30, 2025. During the nine months ended September 30, 2026, the Company recorded $6.7 million in provision for credit losses on loans and a $1.0 million recovery of credit losses on unfunded commitments. As a result, total credit loss expense for the nine-month period ended September 30, 2026 was $5.7 million. During the nine months ended September 30, 2026, the Company recorded $1.7 million in income from an FDIC special assessment credit, $802,000 in BOLI death benefits, $710,000 gain on sale of premises and equipment, $1.3 million 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 acquisition of MCBI during the second quarter of 2026. The merger and acquisition expense reduced earnings per share by $0.06 per share for the nine-month period ended September 30, 2026.

Previous 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.

Current wording

Total interest income increased $27.6 million, or 2.9%, and interest expense decreased $19.2 million, or 6.5%. This was partially offset by a $27.2 million, or 7.9%, increase in non-interest expense and a $5.3 million, or 3.6%, decrease in non-interest income. The increase in interest income resulted from a $40.2 million, or 4.8%, increase in loan interest income which was partially offset by an $8.2 million, or 37.5%, decrease in interest income on deposits at other banks and a $4.4 million, or 4.2%, decrease in investment interest income. The decrease in interest expense was primarily due to a $10.4 million, or 3.9%, decrease in interest on deposits, a $4.5 million, or 26.9%, decrease in interest on FHLB and other borrowed funds, a $4.2 million, or 37.2%, decrease in interest on subordinated debentures and a $112,000, or 3.6%, decrease in interest on securities sold under agreement to repurchase. 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 $9.6 million, or 5.1%, increase in salaries and employee benefits expense, $3.2 million, or 7.4%, increase in occupancy and equipment expense and a $1.6 million, or 6.1%, increase in data processing expense, which were partially offset by a $315,000, or 0.37%, 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. The decrease in non-interest income was primarily due to a $5.0 million, or 13.0%, decrease in other income, a $2.6 million, or 210.0%, decrease in the fair value adjustment for marketable securities and a $671,000, or 1.9%, decrease in other service charges and fees, which were partially offset by a $1.5 million, or 407.7%, increase in gain (loss) on OREO, a $966,000, or 6.6%, increase in trust fees, and a $752,000, or 2.5%, increase in service charges on deposit accounts. Included within September 30, 2025 other income was $7.4 million in special income from equity investments, $2.0 million in recoveries on historic losses, $1.4 million in BOLI death benefit income and $885,000 in legal expense reimbursements.

Previous wording

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 wording

Our efficiency ratio was 42.34% for the nine months ended September 30, 2026, compared to 41.35% for the same period in 2025. For the nine months ended September 30, 2026, our efficiency ratio, as adjusted (non-GAAP), was 41.07%, compared to 41.91% 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 2.02% 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 wording

Our annualized return on average assets was 2.05% for the nine months ended September 30, 2026, compared to 2.11% 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 10.94% and 11.81% for the nine months ended September 30, 2026, and 2025, respectively. (See Table 27 for the related non-GAAP financial measures and tabular reconciliation).

Previous 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.

Current wording

Our total assets as of September 30, 2026, increased $1.26 billion to $24.15 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 $191.7 million for the nine months ended September 30, 2026. Our loan portfolio balance increased to $16.91 billion, as of September 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 $64.4 million of organic loan growth from our Centennial CFG franchise, which were partially offset by $309.8 million of loan decline in our community banking footprint. Investment securities decreased by $267.6 million resulting from paydowns and maturities during the first nine months of 2026. Total deposits increased $1.28 billion to $18.76 billion as of September 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 $232.9 million to $4.53 billion as of September 30, 2026, compared to $4.30 billion as of December 31, 2025. The $232.9 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 $367.0 million in net income for the nine months ended September 30, 2026, partially offset by the $129.5 million in shareholder dividends paid, stock repurchases of $94.4 million and $67.9 million in other comprehensive loss.

Previous 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.

Current wording

Our non-performing loans were $200.8 million, or 1.19% of total loans, as of September 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 162.45% as of September 30, 2026, from 350.17% as of December 31, 2025. As of September 30, 2026, our non-performing assets increased to $245.3 million, or 1.02% 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

We opened one branch in Rockwall, Texas during the quarter ended June 30, 2026.

Current wording

During the nine months ended September 30, 2026, we opened one branch in Rockwall, Texas, closed one branch in Amarillo, Texas, and acquired eight branches in Tennessee.

Previous 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.

Current wording

As of September 30, 2026, we had 226 branch locations. There were 75 branches in Arkansas, 78 branches in Florida, 59 branches in Texas, eight branches in Tennessee, five branches in Alabama and one branch in New York City.

Previous wording

Our net income increased $3.9 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.

Current wording

Our net income increased $9.8 million, or 2.7%, to $367.0 million for the nine-month period ended September 30, 2026, from $357.2 million for the same period in 2025. On a diluted earnings per share basis, our earnings were $1.84 per share for the nine-month period ended September 30, 2026, compared to $1.80 per share for the nine-month period ended September 30, 2025. During the nine months ended September 30, 2026, the Company recorded $6.7 million in provision for credit losses on loans and a $1.0 million recovery of credit losses on unfunded commitments. As a result, total credit loss expense for the nine-month period ended September 30, 2026 was $5.7 million. During the nine months ended September 30, 2026, the Company recorded $1.7 million in income from an FDIC special assessment credit, $802,000 in BOLI death benefits, $710,000 gain on sale of premises and equipment, $1.3 million 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 acquisition of MCBI during the second quarter of 2026. The merger and acquisition expense reduced earnings per share by $0.06 per share for the nine-month period ended September 30, 2026.

Previous wording

The Federal Reserve Board sets various benchmark rates, including the Federal Funds rate, and thereby influences the general market rates of interest, including the deposit and loan rates offered by financial institutions. The Federal Reserve reduced the target rate three times during 2025. First, on September 17, 2025, the Federal Reserve reduced the target rate to 4.00% to 4.25%, second, on October 29, 2025, the target rate was reduced to 3.75% to 4.00% and third, on December 10, 2025, the target rate was reduced to 3.50% to 3.75%. The Federal Reserve has not changed the target rate during 2026.

Current wording

The Federal Reserve Board sets various benchmark rates, including the Federal Funds rate, and thereby influences the general market rates of interest, including the deposit and loan rates offered by financial institutions. The Federal Reserve reduced the target rate three times during 2025. First, on September 17, 2025, the Federal Reserve reduced the target rate to 4.00% to 4.25%; second, on October 29, 2025, the target rate was reduced to 3.75% to 4.00%; and third, on December 10, 2025, the target rate was reduced to 3.50% to 3.75%. On September 16, 2026, the Federal Reserve increased the target rate back to 3.75% to 4.00%.

Previous 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.

Current wording

Net interest income on a fully taxable equivalent basis increased $15.4 million, or 6.7%, to $244.5 million for the three-month period ended September 30, 2026, from $229.1 million for the same period in 2025. This increase in net interest income for the three-month period ended September 30, 2026 was the result of an $11.0 million increase in interest income, on a fully taxable equivalent basis, and a $4.5 million decrease in interest expense. The $11.0 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 $29.6 million in interest income, which was partially offset by a decrease of $18.7 million in interest income due to the lower yield on earning assets. The $4.5 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 $9.6 million, partially offset by an increase in average interest-bearing liabilities which increased interest expense by approximately $5.1 million.

Previous wording

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 wording

Net interest income on a fully taxable equivalent basis increased $46.6 million, or 7.0%, to $715.4 million for the nine-month period ended September 30, 2026, from $668.8 million for the same period in 2025. This increase in net interest income for the nine-month period ended September 30, 2026 was the result of a $27.4 million increase in interest income, on a fully taxable equivalent basis, and a $19.2 million decrease in interest expense. The $27.4 million increase in interest income was primarily the result of the increase in average interest earning asset balances 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 $73.9 million in interest income, which was partially offset by a decrease of $46.4 million in interest income due to the lower yield on earning assets. The $19.2 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 $31.2 million, partially offset by an increase in average interest-bearing liabilities which increased interest expense by approximately $12.0 million.

Previous wording

Tables 2 and 3 reflect an analysis of net interest income on a fully taxable equivalent basis for the three and six months ended June 30, 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.

Current wording

Tables 2 and 3 reflect an analysis of net interest income on a fully taxable equivalent basis for the three and nine months ended September 30, 2026 and 2025, as well as changes in the fully taxable equivalent net interest margin for the three and nine months ended September 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 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.

Current wording

Table 4 shows, for each major category of earning assets and interest-bearing liabilities, the average amount outstanding, the interest income or expense on that amount and the average rate earned or expensed for the three and nine months ended September 30, 2026 and 2025, respectively. The table also shows the average rate earned on all earning assets, the average rate expensed on all interest-bearing liabilities, the net interest spread and the net interest margin for the same periods. The analysis is presented on a fully taxable equivalent basis. Non-accrual loans were included in average loans for the purpose of calculating the rate earned on total loans.

Previous wording

Table 5 shows changes in interest income and interest expense resulting from changes in volume and changes in interest rates for the three and 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.

Current wording

Table 5 shows changes in interest income and interest expense resulting from changes in volume and changes in interest rates for the three and nine months ended September 30, 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 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.

Current wording

Credit Loss Expense: During the three months ended September 30, 2026, the Company did not record a provision for credit losses on loans or unfunded commitments as the current levels of the reserves were considered adequate. During the nine months ended September 30, 2026, the Company recorded $6.7 million in provision for credit losses on loans, and the Company recovered $1.0 million in credit losses on unfunded commitments. During the three and nine months ended September 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

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.

Current wording

Net charge-offs to average total loans were 0.05% and 0.08% for the three months ended September 30, 2026 and 2025, respectively. Net charge-offs (recoveries) to average total loans were 0.08% and 0.00% for the nine months ended September 30, 2026 and 2025, respectively.

Previous 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.

Current wording

Total non-interest income was $46.4 million and $142.7 million for the three and nine months ended September 30, 2026, compared to $51.5 million and $148.0 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 and six months ended June 30, 2026 and 2025.

Current wording

Table 6 measures the various components of our non-interest income for the three and nine months ended September 30, 2026 and 2025.

Previous 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.

Current wording

Non-interest income decreased $5.1 million, or 9.8%, to $46.4 million for the three months ended September 30, 2026 from $51.5 million for the same period in 2025. The primary factors in this decrease were the decreases in mortgage lending income, fair value adjustment for marketable securities and other income, partially offset by the gain (loss) on sale of branches, equipment and other assets, net.

Previous wording

•The $635,000 decrease in the fair value adjustment for marketable securities is due to market fluctuations.

Current wording

•The $1.9 million decrease in the fair value adjustment for marketable securities is due to market fluctuations.

Previous 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.

Current wording

•The $2.3 million decrease in other income was primarily attributable to the absence of certain items recognized in 2025, including a $1.9 million gain on the repurchase of subordinated debt, $1.8 million of income from a lawsuit settlement and $1.2 million of recoveries on historic losses. The decrease was partially offset by a $1.7 million increase in the fair value of equity securities, a $340,000 increase in BOLI death benefit income and a $281,000 increase in investment brokerage fee income.

Previous wording

•The $875,000 increase in trust fees is primarily due to an increase in personal trust and IRA fees.

Current wording

•The $966,000 increase in trust fees is primarily due to an increase in personal trust and IRA fees.

Previous 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.

Current wording

•The $1.5 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 $1.1 million increase in the fair value adjustment for marketable securities is due to market fluctuations.

Current wording

•The $2.6 million decrease in the fair value adjustment for marketable securities is due to market fluctuations.

Previous wording

Table 7 below sets forth a summary of non-interest expense for the three and six months ended June 30, 2026 and 2025.

Current wording

Table 7 below sets forth a summary of non-interest expense for the three and nine months ended September 30, 2026 and 2025.

Previous 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.

Current wording

Non-interest expense increased $6.7 million, or 5.8%, to $121.5 million for the three months ended September 30, 2026 from $114.8 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 and amortization of intangibles.

Previous wording

•The $2.2 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 wording

•The $991,000 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.

Previous wording

•The $864,000 increase in amortization of intangibles is due to the acquisition of MCBI.

Current wording

•The $866,000 increase in amortization of intangibles is due to the acquisition of MCBI.

Previous wording

Non-interest expense increased $20.5 million, or 9.0%, to $249.5 million for the six months ended June 30, 2026 from $229.0 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, data processing and merger and acquisition expenses, which were partially offset by the decrease in legal and accounting expense.

Current wording

Non-interest expense increased $27.2 million, or 7.9%, to $371.0 million for the nine months ended September 30, 2026 from $343.8 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, data processing, merger and acquisition expense and amortization of intangibles expenses, which were partially offset by the decrease in legal and accounting expense.

Previous 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.

Current wording

•The $9.6 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 $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 wording

•The $3.2 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.

Previous wording

•The $1.3 million increase in data processing expense is due to an increase in core processing computer expense related to the acquisition of MCBI.

Current wording

•The $1.6 million increase in data processing expense is due to an increase in core processing computer expense related to the acquisition of MCBI.

Previous wording

•The $3.6 million decrease in legal and accounting expense is primarily due to legal matters which occurred during 2025.

Current wording

•The $3.5 million decrease in legal and accounting expense is primarily due to legal matters which occurred during 2025.

Previous 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.

Current wording

Income tax expense increased $1.7 million, or 4.9%, to $37.5 million for the three-month period ended September 30, 2026, from $35.7 million for the same period in 2025. Income tax expense increased $5.3 million, or 5.2%, to $106.6 million for the nine-month period ended September 30, 2026, from $101.3 million for the same period in 2025. The effective income tax rate was 22.44% and 22.50% for the three and nine months ended September 30, 2026, compared to 22.42% and 22.09% for the same periods in 2025. The marginal tax rate was 24.359% and 24.433% for 2026 and 2025, respectively.