National Bank Holdings Corp
For the period ended Mar 31, 2026. Filed May 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.
Mar 31, 2026 · Filed May 7, 2026
NBHC$36.91-0.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-10-29.
0001475841-25-000063
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0001475841-26-000027
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 190 previous paragraphs and 190 current paragraphs.
93 unchanged; 69 reworded; 23 added; 23 removed; 5 previous and 5 current paragraphs rearranged.
Tables are not compared: 50 previous and 49 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 (23)
Current report
While Vista integration activities are progressing and remain on track, acquisition integrations present operational and execution challenges. Integration activities require ongoing investments in systems, processes, and personnel. While the acquisition supports our long term growth strategy, the integration process may be more costly or time consuming than anticipated.
Current report
Non-GAAP Financial Measures and Reconciliations
Current report
Tangible Book Value Ratios
Current report
Acquired loans
Current report
ASC Topic 805,Business Combinations, requires all acquired loans be recorded at fair value at the date of acquisition. The fair value for acquired loans at the time of acquisition is based on a variety of factors including discounted expected cash flows, adjusted for estimated prepayments and credit losses. In accordance with ASC 326, the fair value adjustment is recorded as premium or discount to the unpaid principal balance of each acquired loan. The net premium or discount on loans includes credit quality and interest rate considerations and is accreted or amortized into interest income over the remaining life of the loan using the level yield method. The Company early adopted ASU 2025-08,Financial Instruments - Credit Losses (Topic 326):Purchased Loans on January 1, 2026. That update amends the guidance in ASC 326 related to the accounting for purchased loans so that loans are recorded at their purchase price plus an allowance for expected credit losses, commonly known as the gross-up method.
Current report
In December 2025, the FASB issued ASU 2025-11,Interim Reporting(Topic 270): Narrow-scope Improvements. The update amends the guidance in ASC 270 to improve the required interim disclosures and clarify when that guidance is applicable as well as clarify disclosures that should be provided in interim reporting periods. The guidance also requires entities to disclose events taking place after the end of the last annual reporting period that have a material impact. The standard is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. The Company is currently evaluating the impact from ASU 2025-11 and does not expect the adoption of this pronouncement to have a material impact on its financial statements.
Current report
In November 2025, the FASB issued ASU 2025-09,Derivatives and Hedging(Topic 815): Hedge Accounting Improvements. The update includes targeted changes to the guidance in ASC 815 to better reflect risk management, reduce complexity and align with economic reality. The update will allow grouping of hedged items for forecasts with similar risk, more flexibility for variable-rate debt and simplified accounting for certain complex hedges, including swaps and options. It primarily affects cash flow hedges. The standard is effective for interim and annual reporting periods beginning after December 15, 2026. Early adoption is permitted. The guidance must be adopted on a prospective basis, and there are transition provisions designed to assist in migrating existing hedging relationships to the new guidance. The Company is currently evaluating the impact from ASU 2025-09 and does not expect the adoption of this pronouncement to have a material impact on its financial statements.
Current report
As of March 31, 2026, the Vista acquisition added $2.5 billion of total assets, including $339.1 million of cash and cash equivalents, $145.5 million of investment securities, $1.9 billion of loans and $29.5 million of allowance for credit losses. The acquisition also included total deposits of $2.2 billion.
Current report
Total investment securities available-for-sale were $605.2 million at March 31, 2026, compared to $528.6 million at December 31, 2025. During the three months ended March 31, 2026 and 2025, purchases of available-for-sale securities totaled $144.8 million and $142.2 million, respectively. During 2026, the Company acquired available-for-sale securities with a fair value of $145.5 million related to the Vista acquisition. Paydowns and maturities totaled $33.3 million and $48.4 million during the three months ended March 31, 2026 and 2025, respectively. During the three months ended March 31, 2026, the Company sold $176.9 million of available-for-sale securities, primarily related to Vista securities. There were no sales of available-for-sale securities during the three months ended March 31, 2025.
Current report
FRB, FHLB and correspondent bank stock
Current report
million and zero, respectively, of equity securities with readily determinable fair values, resulting in a realized loss totaling $0.7 million in the first quarter of 2026. During the three months ended March 31, 2026 and 2025, the Company recorded $0.1 million and zero, respectively, of unrealized losses from equity securities with readily determinable fair values.
Current report
At March 31, 2026 and December 31, 2025, the allowance for credit losses totaled $113.5 million and $87.4 million, respectively. As a result of the Vista acquisition, the Company recorded $29.5 million of allowance for credit losses for the loans acquired. The remaining increase during the three months ended March 31, 2026, excluding net charge-offs, was primarily driven by loan growth. Specific reserves on individually evaluated loans totaled $14.4 million at March 31, 2026, compared to $8.1 million at December 31, 2025.
Current report
Deposits
Current report
During February 2026, the Company closed a public offering of fixed-to-floating rate subordinated notes totaling $150.0 million. The balance on the notes at March 31, 2026, net of long-term debt issuance costs of $2.7 million, totaled $147.3 million. During the three months ended March 31, 2026, interest expense totaling $1.2 million was recorded in the consolidated statements of operations. From the issue date to February 15, 2031, or the date of earlier redemption, the Company will pay interest on the notes semi-annually in arrears on February 15 and August 15 of each year, commencing on August 15, 2026, at a fixed annual interest rate equal to 5.875%. From February 15, 2031 to the maturity date, or the date of earlier redemption, the floating interest rate per annum will be equal to the three-month term SOFR plus a spread of 241 basis points, payable quarterly in arrears on February 15, May 15, August 15 and November 15 of each year, commencing on May 15, 2031. The notes will mature on February 15, 2036. The Company may, at its option, redeem the notes in whole or in part beginning with the interest payment date of February 15, 2031 and on any interest payment date thereafter. The Company deployed the net proceeds from the sale of the notes for general corporate purposes.
Current report
Net interest income on an FTE basis increased $22.4 million, or 25.3%, to $111.0 million during the three months ended March 31, 2026, compared to the same period in the prior year. During the three months ended March 31, 2026, the FTE net interest margin expanded 13 basis points to 4.06%, compared to the three months ended March 31, 2025, driven by a five basis point increase in earning asset yields and a nine basis point improvement in the cost of funds. During the three months ended March 31, 2026, the cost of funds improved nine basis points to 1.98%, compared to the three months ended March 31, 2025.
Current report
The Vista acquisition added $2.2 billion of total deposits, including $2.0 of transaction deposits and $0.2 billion of time deposits on January 7, 2026.
Current report
including $10.9 million of provision expense for funded loans and $0.7 million of provision release for unfunded loan commitments. The allowance for credit losses totaled 1.18% of total loans at March 31, 2026 and 2025.
Current report
Non-interest income totaled $18.0 million for the three months ended March 31, 2026, compared to $15.4 million for the three months ended March 31, 2025. The increase was primarily driven by increases in our diversified sources of fee income including swap fee income, Cambr fee income, and trust income.
Current report
During the three months ended March 31, 2026, non-interest expense totaled $96.8 million, compared to $62.0 million during the three months ended March 31, 2025. Non-interest expense during the three months ended March 31, 2026 included $15.3 million of acquisition and restructuring expenses. Excluding these items, the current quarter adjusted non-interest expense totaled $81.5 million, increasing from the first quarter of 2025 primarily due to an increase in core operating expense growth from our recent acquisition. Occupancy and equipment expense increased $5.0 million primarily driven by the 2UniFi capitalized asset depreciation in connection with the launch of 2UniFi in the third quarter of 2025.
Current report
Income tax expense totaled $5.2 million and $5.6 million for the three months ended March 31, 2026 and 2025, respectively. The effective tax rate for the three months ended March 31, 2026 and 2025 was 19.9% and 18.8%, respectively.
Current report
During the first quarter of 2026, the Company issued and sold $150.0 million aggregate principal amount of 5.875% fixed-to-floating rate subordinated notes at a public offering price equal to 100% of the aggregate principal amount of the notes. The net proceeds from the sale of the notes to the Company were approximately $147.3 million, after giving effect to the underwriting discount of 1.25% and estimated expenses of the offering of the notes. The Company intends to use the net proceeds for general corporate purposes.
Current report
Capital
Current report
repurchase up to $100.0 million of its common stock. The new program replaces in its entirety the stock repurchase program that was authorized by the Board of Directors and announced on May 9, 2023. The timing and amount of any share repurchases will be determined by the Company’s management based on market conditions and other factors. No time limit has been set for completion of the program. During the three months ended March 31, 2026, the Company repurchased 401,869 shares of common stock for $16.1 million at a weighted average price per share of $40.07. The remaining authorization under the program as of March 31, 2026 was $83.9 million.
Removed paragraphs (23)
Previous report
Client deposit funded balance sheet*
Previous report
Strong capital position*
Previous report
Tangible Common Book Value Ratios
Previous report
Fully Taxable Equivalent Yield on Earning Assets and Net Interest Margin
Previous report
In September 2025, the FASB issued ASU 2025-06,Intangibles—Goodwill and Other—Internal-Use Software (Topic 350):Targeted Improvements to the Accounting for Internal-Use Software. The update will eliminate the accounting consideration of software project development stages and enhance the guidance around the threshold for cost capitalization. The amendments in this update are effective for fiscal years and interim reporting periods beginning after December 15, 2027 and can be applied using a prospective transition approach, a modified transition approach or a retrospective transition approach. Early adoption is permitted. The Company is currently evaluating the impact from ASU 2025-06.
Previous report
In July 2025, the FASB issued ASU 2025-05,Financial Instruments—Credit Losses (Topic 326):Measurement of Credit Losses for Accounts Receivable and Contract Assets. The update is related to the estimation of expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under ASC Topic 606. It allows all entities to elect a practical expedient that assumes current conditions as of the balance sheet date do not change for the remaining life of the asset. The update also allows for an accounting policy election, which is not applicable to public business entities. Entities are required to disclose whether they have elected to use the practical expedient and, if applicable, the accounting policy election. The amendments in this update are effective for fiscal years and interim reporting periods beginning after December 15, 2025 and are to be applied on a
Previous report
Total investment securities available-for-sale were $612.7 million at September 30, 2025, compared to $527.5 million at December 31, 2024. Purchases of available-for-sale securities during the nine months ended September 30, 2025 and 2024 totaled $164.7 million and $199.1 million, respectively. Paydowns and maturities totaled $100.4 million and $137.6 million during the nine months ended September 30, 2025 and 2024, respectively.
Previous report
FRB and FHLB stock
Previous report
At September 30, 2025 and December 31, 2024, the allowance for credit losses totaled $88.3 million and $94.5 million, respectively. The decrease during the nine months ended September 30, 2025 was primarily driven by the resolution of non-performing loans and changes in the CECL model’s underlying macro-economic forecast. Specific reserves on loans totaled $4.8 million at September 30, 2025, compared to $6.4 million at December 31, 2024.
Previous report
As part of the acquisition of BOJH on October 1, 2022, the Company assumed three subordinated note purchase agreements to issue and sell fixed-to-floating rate notes totaling $15.0 million. The balance on the notes at September 30, 2025, net of a fair value adjustment related to the acquisition totaling $0.1 million, totaled $14.9 million. At December 31, 2024, the balance on the notes, net of a fair value adjustment related to the acquisition totaling $0.3 million, totaled $14.7 million. Interest expense related to the notes totaling $0.1 million and $0.4 million was recorded in the consolidated statements of operations during the three and nine months ended September 30, 2025 and 2024, respectively.
Previous report
Net interest income increased $0.5 million to $88.2 million during the three months ended September 30, 2025, compared to the three months ended September 30, 2024. Net interest income on an FTE basis increased $0.7 million to $90.2 million during the three months ended September 30, 2025, compared to the three months ended September 30, 2024. During the three months ended September 30, 2025, the FTE net interest margin widened 11 basis points to 3.98%, compared to the three months ended September 30, 2024. The yield on earning assets decreased 13 basis points, driven by a decrease in loan yields during the three months ended September 30, 2025, and the cost of funds decreased 26 basis points to 2.10%, compared to the three months ended September 30, 2024.
Previous report
Average investment securities comprised 15.5% and 14.6% of total interest earning assets during the three months ended September 30, 2025 and 2024, respectively. Average interest bearing cash balances totaled $149.9 million during the three months ended September 30, 2025, compared to $70.9 million for the same period in the prior year, as a result of holding higher levels of on-balance sheet liquidity.
Previous report
Net interest income increased $7.0 million to $262.3 million during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024. Net interest income on an FTE basis increased $7.6 million to $268.1 million during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024. During the nine months ended September 30, 2025, the FTE net interest margin widened 15 basis points to 3.95%, compared to the nine months ended September 30, 2024. The cost of funds improved 22 basis points to 2.09%, during the nine months ended September 30, 2025, partially offset by a seven basis point decrease in earning asset yields, compared to the nine months ended September 30, 2024.
Previous report
Average loans comprised $7.5 billion, or 83.2%, of total average interest earning assets during the nine months ended September 30, 2025, compared to $7.7 billion, or 83.9%, during the nine months ended September 30, 2024.
Previous report
Average interest bearing liabilities decreased $16.1 million during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024. The decrease was primarily driven by lower interest bearing demand, savings and money market deposits totaling $83.8 million and FHLB advances totaling $12.0 million. The decrease was partially offset by higher time deposits totaling $55.3 million, and other borrowings totaling $24.1 million.
Previous report
During the three months ended September 30, 2025, the Company recorded provision release for funded loans totaling $1.5 million, primarily driven by the recovery of one previously charged off credit. During the nine months ended September 30, 2025, the Company recorded provision expense for credit losses totaling $8.7 million, including $9.0 million provision expense for funded loans and $0.3 million of provision release for unfunded loan commitments. Provision expense for credit losses during the nine months ended September 30, 2025 was recorded primarily to cover a charge-off on one credit due to suspected fraudulent activity by the borrower. During the three months ended September 30, 2024, the Company recorded provision expense for credit losses on funded loans totaling $2.0 million. During the nine months ended September 30, 2024, the Company recorded provision expense for credit losses totaling $4.8 million, including $4.7 million of provision expense for funded loans and $0.1 million of provision expense for unfunded loan commitments. The allowance for credit losses totaled 1.19% and 1.23% of total loans at September 30, 2025 and 2024, respectively.
Previous report
Non-interest income totaled $20.7 million for the three months ended September 30, 2025, increasing 12.5% compared to the three months ended September 30, 2024. Other non-interest income increased $3.3 million due to unrealized gains on partnership investments. Partially offsetting the increase was a combined decrease from service charges and bank card fees totaling $0.9 million.
Previous report
Non-interest income increased $3.0 million, or 6%, to $53.1 million for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024. Other non-interest income increased $5.0 million, primarily driven by $3.3 million of unrealized gains on partnership investments, a $0.9 million increase in gains on sales of previously consolidated banking center properties, and a $0.7 million increase in trust income during the nine months ended September 30, 2025, compared to the same period in the prior year.
Previous report
During the three months ended September 30, 2025, non-interest expense increased $3.1 million, compared to the three months ended September 30, 2024. The third quarter of 2025 included $1.7 million of acquisition-related expenses included in professional fees and salaries and benefits. Occupancy and equipment expenses increased $2.7 million during the three months ended September 30, 2025,
Previous report
compared to the same period in the prior year, primarily driven by 2UniFi’s software asset depreciation as a result of the recent launch of 2UniFi in the third quarter of 2025.
Previous report
During the nine months ended September 30, 2025, non-interest expense increased $2.1 million to $192.2 million, compared to the same period during the prior year due to acquisition-related expenses from the proposed merger totaling $1.7 million, primarily included in professional fees and salaries and benefits. Occupancy and equipment expense increased $2.9 million primarily driven by the depreciation of the 2UniFi software asset noted above. Data processing increased $1.0 million during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024.
Previous report
Income tax expense totaled $7.9 million and $21.0 million for the three and nine months ended September 30, 2025, respectively. Income tax expense for the three and nine months ended September 30, 2024 totaled $6.8 million and $19.9 million, respectively. Changes between periods were primarily driven by changes in pre-tax income. The effective tax rate for the three and nine months ended September 30, 2025 was 18.2% and 18.3%, respectively, compared to 17.0% and 18.0% for the same periods in the prior year.
Previous report
On July 4, 2025, the One Big Beautiful Bill Act was signed into law. Provisions of the bill allowed companies to take an immediate deduction of domestic research and experimentation expenditures effective for tax years beginning after December 31, 2024. For unamortized domestic research and experimentation expenses capitalized from 2022 to 2024, the bill also allows companies to elect to deduct the remaining costs either fully in 2025 or ratably over two years. The Company elected to fully deduct the remaining costs in 2025. The bill also permanently reinstated 100% bonus depreciation for assets placed in service after January 19, 2025. As a result of these provisions, the company recorded a deferred tax expense of $8.9 million during the third quarter of 2025 related to the remeasurement and decrease in its deferred tax balances.
Reworded paragraphs (69)
Previous wording
The following management’s discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and related notes as of and for the three and nine months ended September 30, 2025, and with our annual report onForm 10-K (file number 001-35654), which includes our audited consolidated financial statements and related notes as of and for the years ended December 31, 2024, 2023 and 2022. This discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions that may cause actual results to differ materially from management’s expectations. Factors that could cause such differences are discussed in the section entitled “Cautionary Note Regarding Forward-Looking Statements,” in Item 1A “Risk Factors” located elsewhere in this quarterly report and in Item 1A“Risk Factors” in the annual report onForm 10-K, referenced above, and should be read herewith.
Current wording
The following management’s discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and related notes as of and for the three months ended March 31, 2026, and with our annual report onForm 10-K (file number 001-35654), which includes our audited consolidated financial statements and related notes as of and for the years ended December 31, 2025, 2024 and 2023. Our acquisition of Vista occurred on January 7, 2026, subsequent to the dates of information in our most recent report on Form 10-K, and comparisons herein to prior quarters or years should be reviewed with that context. This discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions that may cause actual results to differ materially from management’s expectations. Factors that could cause such differences are discussed in the section entitled “Cautionary Note Regarding Forward-Looking Statements” located elsewhere in this quarterly report and in Item 1A“Risk Factors” in the annual report onForm 10-K, referenced above, and should be read herewith.
Previous wording
Our focus is on building relationships by creating a win-win scenario for our clients and our Company. We believe in providing solutions and services to our clients that are based on fairness and simplicity. We have established a solid financial services franchise with a sizable presence for deposit gathering and building client relationships necessary for growth. We have executed on strategic acquisition opportunities to expand our presence in attractive markets and to diversify our revenue streams. Additionally, we are innovating and building strategic fintech partnerships with the goal of delivering a comprehensive digital financial ecosystem for our clients. We are focused on providing small- and medium-sized businesses with alternative digital access to address borrowing, depository and cash management needs, while also providing information management and access to digital payment tools, under the safety of a regulated bank. We believe that our established presence in our core markets of Colorado, the greater Kansas City region, Utah, Wyoming, Texas, New Mexico and Idaho, as well as our ongoing investment in digital solutions and strategic acquisitions, position us well for growth opportunities. As of September 30, 2025, we had $10.2 billion in assets, $7.4 billion in loans, $8.5 billion in deposits, $1.4 billion in equity and $1.1 billion in assets under management in our trust and wealth management business.
Current wording
Our focus is on building relationships by creating a win-win scenario for our clients and our Company. We believe in providing solutions and services for our clients that are based on fairness and simplicity. We have established a solid financial services franchise with a sizable presence for deposit gathering and building client relationships necessary for growth. We have executed on strategic acquisition opportunities to expand our presence in attractive markets and to diversify our revenue streams. Additionally, the Company continues to shift from constructing systems for 2UniFi to activating services. 2UniFi is an innovative financial ecosystem with treasury management depository capabilities and a streamlined SBA loan offering. Moving forward, 2UniFi will continue to focus on providing a unified client experience that helps small- and medium-sized business owners manage financial products and services across multiple banks and fintechs. We believe that our established presence in our core markets of Colorado, the greater Kansas City region, Texas, Utah, Wyoming, New Mexico, Idaho and Palm Beach, Florida, as well as our ongoing investment in digital solutions and strategic acquisitions, position us well for growth opportunities. As of March 31, 2026, we had $12.6 billion in assets, $9.6 billion in loans, $10.5 billion in deposits, $1.7 billion in equity and $1.4 billion in assets under management in our trust and wealth management business.
Previous wording
Macroeconomic pressures, including uncertainty in tariff policies, have resulted in volatility and uncertainty in the banking industry and many other industries. The sustained higher-interest rate environment and wait-and-see attitudes of clients are drawing increased scrutiny on financial institutions. Liquidity within the financial services sector has tightened, and we expect the intense competition for deposits throughout our markets to continue. While these are widespread challenges for the banking industry, the Company has not experienced a material impact to our financial condition, operations, client base, liquidity, capital position or risk profile.
Current wording
Macroeconomic pressures have resulted in volatility and uncertainty in the banking industry and many other industries. Liquidity within the financial services sector remains tight, and we expect the intense competition for deposits throughout our markets to continue. While these are widespread challenges for the banking industry, the Company has not experienced a material impact to our financial condition, operations, client base, liquidity, capital position or risk profile.
Previous wording
Additionally, we face continual challenges implementing our business strategy. These include growing our assets, particularly loans, and deposits amidst intense competition, changing interest rates, adhering to changes in the regulatory environment and identifying and consummating disciplined acquisition and other expansionary opportunities in a very competitive and inflationary environment. In connection with our digital growth strategy and our digital financial ecosystem 2UniFi, we have made and will continue to make investments in and also partner with third-party fintech companies. The innovations these companies develop for utilization by 2UniFi may prove difficult to successfully integrate into our existing operations and may require additional operational and control systems to manage fraud, cybersecurity, operational, legal and compliance risks.
Current wording
Additionally, we face continual challenges implementing our business strategy. These include growing our assets, particularly loans, and deposits amidst intense competition, changing interest rates, adhering to changes in the regulatory environment and identifying and consummating disciplined acquisition and other expansionary opportunities in a competitive and inflationary environment. We will continue to make investments in our digital growth strategy and our digital financial ecosystem 2UniFi, and may also seek to partner with third parties to accelerate growth. 2UniFi may prove difficult to successfully scale and may require additional operational and control systems to manage fraud, cybersecurity, operational, legal and compliance risks.
Previous wording
Future growth in our interest income will ultimately be dependent on our ability to originate high-quality loans and source other high-quality earning assets such as investment securities as well as our ability to access liquidity and manage our cost of funds. During the years ended December 31, 2023 and 2022, the Federal Reserve increased prevailing interest rates by a total of 100 and 425 basis points, respectively. In the second half of 2024, the Federal Reserve decreased the prevailing interest rates by a total of 100 basis points, and during the third quarter of 2025 the Federal Reserve decreased the prevailing interest rates by 25 basis points. While further cuts in 2025 remain unclear, our future earnings will be impacted by the Federal Reserve’s future interest rate policy decisions. Management employs risk management policies to monitor and limit exposure to changes in market rates, which is discussed in more detail in the Asset/Liability Management and Interest Rate Risk section of Management’s Discussion and Analysis.
Current wording
Future growth in our interest income will ultimately be dependent on our ability to originate high-quality loans and source other high-quality earning assets such as investment securities as well as our ability to access liquidity and manage our cost of funds. Over the past two years, the Federal Reserve lowered the prevailing interest rates by 175 basis points. While further rate changes remain unclear, our future earnings will be impacted by the Federal Reserve’s future interest rate policy decisions. Management employs risk management policies to monitor and limit exposure to changes in market rates, which is discussed in more detail in the Asset/Liability Management and Interest Rate Risk section of Management’s Discussion and Analysis.
Previous wording
In evaluating our consolidated statements of financial condition and results of operations financial statement line items, we evaluate and manage our performance based on key earnings indicators, balance sheet ratios, asset quality metrics and regulatory capital ratios, among others. The table below presents some of the primary performance indicators that we use to analyze our business on a regular basis for the periods indicated:
Current wording
In evaluating our consolidated statements of financial condition and results of operations financial statement line items, we evaluate and manage our performance based on key earnings indicators, balance sheet ratios, asset quality metrics and regulatory capital ratios, among others. The table below presents key performance indicators regularly used to analyze our business for the periods indicated:
Previous wording
Certain financial measures and ratios presented in the tables within thisAbout Non-GAAP Financial Measures section are supplemental measures that are not required by, or are not presented in accordance with, U.S. GAAP. We refer to these financial measures and ratios as “non-GAAP financial measures.” We consider the use of select non-GAAP financial measures and ratios to be useful for financial and operational decision making and useful in evaluating period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain expenditures or assets that we believe are not indicative of our primary business operating results or by presenting certain metrics on an FTE basis. We believe that management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, analyzing and comparing past, present and future periods.
Current wording
Certain financial measures and ratios presented are supplemental measures that are not required by, or are not presented in accordance with, U.S. GAAP. We refer to these financial measures and ratios as “non-GAAP financial measures.” We consider the use of select non-GAAP financial measures and ratios to be useful for financial and operational decision making and useful in evaluating period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain expenditures or assets that we believe are not indicative of our primary business operating results. We believe that management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, analyzing and comparing past, present and future periods.
Previous wording
A reconciliation of our GAAP financial measures to the comparable non-GAAP financial measures is as follows:
Current wording
Reconciliations of our non-GAAP financial measures to the comparable GAAP financial measures are as follows:
Previous wording
We use accounting principles and methods that conform to GAAP and general banking practices. We are required to apply significant judgment and make material estimates in the preparation of our financial statements and with regard to various accounting, reporting and disclosure matters. Assumptions and estimates are required to apply these principles where actual measurement is not possible or practical. The most significant of these estimates relate to the determination of the ACL.
Current wording
We use accounting principles and methods that conform to GAAP and general banking practices. We are required to apply significant judgment and make material estimates in the preparation of our financial statements and with regard to various accounting, reporting and disclosure matters. Assumptions and estimates are required to apply these principles where actual measurement is not possible or practical. The most significant of these estimates is described below.
Previous wording
In November 2024, the FASB issued ASU 2024-03,Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Topic 220): Disaggregation of Income Statement Expenses. The update requires public business entities to disclose specific components of certain expense categories. This includes expense categories such as employee compensation, depreciation, and intangible asset amortization. The amendments in this update are effective for fiscal years beginning after December 15, 2026 and are to be applied on a prospective basis with an option for retrospective application. Early adoption is permitted. The Company has evaluated the impact from ASU 2024-03 and does not expect the adoption of this pronouncement to have a material impact on its financial statements apart from the inclusion of additional disclosures.
Current wording
and intangible asset amortization. The amendments in this update are effective for fiscal years beginning after December 15, 2026 and are to be applied on a prospective basis with an option for retrospective application. Early adoption is permitted. The Company has evaluated the impact from ASU 2024-03 and does not expect the adoption of this pronouncement to have a material impact on its financial statements apart from the inclusion of additional disclosures.
Previous wording
Total assets were $10.2 billion at September 30, 2025, increasing $345.0 million, or 3.5%, from December 31, 2024. Cash and cash equivalents increased $427.7 million from December 31, 2024, and investment securities increased $245.6 million. Loans totaled $7.4 billion and $7.8 billion at September 30, 2025 and December 31, 2024, respectively, and the allowance for credit losses totaled $88.3 million and $94.5 million at September 30, 2025 and December 31, 2024, respectively. Lower-cost transaction deposits totaled $7.3 billion and $7.2 billion at September 30, 2025 and December 31, 2024, respectively. Total deposits increased $233.8 million to $8.5 billion at September 30, 2025, compared to December 31, 2024.
Current wording
At March 31, 2026, the Company’s total assets, including the additions from the Vista acquisition, were $12.6 billion, increasing $2.7 billion, or 27.6%, from December 31, 2025. Cash and cash equivalents increased $55.7 million from December 31, 2025, and investment securities increased $182.1 million. Loans totaled $9.6 billion and $7.4 billion at March 31, 2026 and December 31, 2025, respectively, and the allowance for credit losses totaled $113.5 million and $87.4 million at March 31, 2026 and December 31, 2025, respectively. During the three months ended March 31, 2026, lower-cost transaction deposits increased $2.0 billion to $9.2 billion, compared to December 31, 2025. Total deposits increased $2.2 billion to $10.5 billion at March 31, 2026, compared to December 31, 2025.
Previous wording
As of September 30, 2025 and December 31, 2024, nearly all the available-for-sale investment portfolio was backed by mortgages. The residential mortgage pass-through securities portfolio is comprised of both fixed rate and adjustable rate FHLMC, FNMA and GNMA securities. The other mortgage-backed securities are comprised of securities backed by FHLMC, FNMA and GNMA securities.
Current wording
As of March 31, 2026 and December 31, 2025, nearly all the available-for-sale investment portfolio was backed by mortgages. The residential mortgage pass-through securities portfolio is comprised of both fixed-rate and adjustable-rate FHLMC, FNMA and GNMA securities. The other MBS are comprised of securities backed by FHLMC, FNMA and GNMA securities.
Previous wording
Mortgage-backed securities may have actual maturities that differ from contractual maturities depending on the repayment characteristics and experience of the underlying financial instruments. The estimated weighted average life of the available-for-sale mortgage-backed securities portfolio was 4.6 years and 5.3 years at September 30, 2025 and December 31, 2024, respectively. This estimate is based on assumptions and actual results may differ. At September 30, 2025 and December 31, 2024, the duration of the total available-for-sale investment portfolio was 3.9 years and 4.3 years, respectively.
Current wording
Mortgage-backed securities may have actual maturities that differ from contractual maturities depending on the repayment characteristics and experience of the underlying financial instruments. The estimated weighted average life of the available-for-sale mortgage-backed securities portfolio was 4.3 years and 4.6 years at March 31, 2026 and December 31, 2025, respectively. This estimate is based on assumptions and actual results may differ. At March 31, 2026 and December 31, 2025, the duration of the total available-for-sale investment portfolio was 3.6 years and 3.9 years, respectively.
Previous wording
At September 30, 2025 and December 31, 2024, adjustable rate securities comprised 13.6% and 5.9%, respectively, of the available-for-sale MBS portfolio. The remainder of the portfolio was comprised of fixed rate amortizing securities with 10- to 30-year contractual maturities, with a weighted average coupon of 2.42% per annum and 2.31% per annum at September 30, 2025 and December 31, 2024, respectively.
Current wording
At March 31, 2026 and December 31, 2025, adjustable-rate securities comprised 2.8% and 0.6%, respectively, of the available-for-sale MBS portfolio. The remainder of the portfolio was comprised of fixed-rate amortizing securities with 10- to 30-year contractual maturities, with a weighted average coupon of 2.46% per annum and 2.30% per annum at March 31, 2026 and December 31, 2025, respectively.
Previous wording
The available-for-sale investment portfolio included $69.0 million of unrealized losses and $2.8 million of unrealized gains at September 30, 2025. At December 31, 2024, the available-for-sale investment portfolio included $90.9 million of unrealized losses and $0.5 million of unrealized gains. We believe any unrealized losses are a result of prevailing interest rates, and as such, we do not believe that any of the securities with unrealized losses were impaired. Management believes that default of the available-for-sale securities is highly unlikely. FHLMC, FNMA and GNMA guaranteed mortgage-backed securities and U.S. Treasury securities have a long history of zero credit losses, an explicit guarantee by the U.S. government (although limited for FNMA and FHLMC securities) and yields that generally trade based on market views of prepayment and liquidity risk rather than credit risk.
Current wording
The available-for-sale investment portfolio included $63.2 million of unrealized losses and $0.8 million of unrealized gains at March 31, 2026. At December 31, 2025, the available-for-sale investment portfolio included $60.2 million of unrealized losses and $2.9 million of unrealized gains. We believe any unrealized losses are a result of prevailing interest rates, and as such, we do not believe that any of the securities with unrealized losses were impaired. Management believes that default of the available-for-sale securities is highly unlikely. FHLMC, FNMA and GNMA guaranteed mortgage-backed securities and U.S. Treasury securities have a long history of zero credit losses, an explicit guarantee by the U.S. government (although limited for FNMA and FHLMC securities) and yields that generally trade based on market views of prepayment and liquidity risk rather than credit risk.
Previous wording
Our investment security portfolio consists of high-quality securities, which are largely backed by either U.S. government agencies or U.S. government sponsored entities. We regularly model liquidity stress scenarios to assess potential liquidity issues.
Current wording
Our investment security portfolio consists of high-quality securities, which are largely backed by either U.S. government agencies or GSEs. We regularly model liquidity stress scenarios to assess potential liquidity issues.
Previous wording
Held-to-maturity investment securities totaled $689.5 million at September 30, 2025, compared to $533.1 million at December 31, 2024, an increase of $156.4 million, or 29.3%. Purchases during the nine months ended September 30, 2025 totaled $260.3 million. There were no purchases of held-to-maturity securities during the nine months ended September 30, 2024. Paydowns and maturities totaled $105.0 million and $47.4 million during the nine months ended September 30, 2025 and 2024, respectively.
Current wording
Held-to-maturity investment securities totaled $757.4 million at March 31, 2026, compared to $651.7 million at December 31, 2025, an increase of $105.6 million, or 16.2%. Purchases during the three months ended March 31, 2026 and 2025 totaled $137.9 million and $190.6 million, respectively. Maturities and paydowns of held-to-maturity securities totaled $32.8 million and $17.0 million during the three months ended March 31, 2026 and 2025, respectively.
Previous wording
The fair value of the held-to-maturity investment portfolio included $61.2 million of unrealized losses and $2.5 million of unrealized gains at September 30, 2025. At December 31, 2024, the held-to-maturity investment portfolio included $81.8 million of unrealized losses and $51 thousand of unrealized gains.
Current wording
The fair value of the held-to-maturity investment portfolio included $59.6 million of unrealized losses and $1.3 million of unrealized gains at March 31, 2026. At December 31, 2025, the held-to-maturity investment portfolio included $57.3 million of unrealized losses and $3.0 million of unrealized gains.
Previous wording
The Company does not measure expected credit losses on a financial asset, or groups of financial assets, in which historical credit loss information adjusted for current conditions and reasonable and supportable forecasts results in an expectation that nonpayment of the amortized cost basis is zero. Management evaluated held-to-maturity securities noting they are backed by loans guaranteed by either U.S. government agencies or U.S. government sponsored entities, and management believes that default is highly unlikely given this governmental backing and long history without credit losses. Additionally, management notes that yields on which the portfolio
Current wording
The Company does not measure expected credit losses on a financial asset, or groups of financial assets, in which historical credit loss information adjusted for current conditions and reasonable and supportable forecasts results in an expectation that nonpayment of the amortized cost basis is zero. Management evaluated held-to-maturity securities noting they are backed by loans guaranteed by either U.S. government agencies or GSEs, and management believes that default is highly unlikely given this governmental backing and long history without credit losses. Additionally, management notes that yields on which the portfolio generally trades are based upon
Previous wording
generally trades are based upon market views of prepayment and liquidity risk and not credit risk. The Company has no intention to sell the securities and believes it will not be required to sell the securities before the recovery of their amortized cost.
Current wording
market views of prepayment and liquidity risk and not credit risk. The Company has no intention to sell the securities and believes it will not be required to sell the securities before the recovery of their amortized cost.
Previous wording
Mortgage-backed securities may have actual maturities that differ from contractual maturities depending on the repayment characteristics and experience of the underlying financial instruments. The estimated weighted average expected life of the held-to-maturity mortgage-backed securities portfolio as of September 30, 2025 and December 31, 2024 was 4.6 years and 5.6 years, respectively. This estimate is based on assumptions and actual results may differ. The duration of the total held-to-maturity investment portfolio was 3.8 years and 4.4 years as of September 30, 2025 and December 31, 2024, respectively.
Current wording
Mortgage-backed securities may have actual maturities that differ from contractual maturities depending on the repayment characteristics and experience of the underlying financial instruments. The estimated weighted average expected life of the held-to-maturity mortgage-backed securities portfolio as of March 31, 2026 and December 31, 2025 was 3.9 years and 4.3 years, respectively. This estimate is based on assumptions and actual results may differ. The duration of the total held-to-maturity investment portfolio was 3.3 years and 3.6 years as of March 31, 2026 and December 31, 2025, respectively.
Previous wording
Other securities included FRB stock, FHLB stock, convertible preferred stock, equity method investments and equity securities with readily determinable fair values. During the nine months ended September 30, 2025, purchases of other securities totaled $50.0 million, and proceeds from redemptions and sales of other securities totaled $48.0 million. During the nine months ended September 30, 2024, purchases of other securities totaled $26.2 million, and proceeds from other securities totaled $42.6 million. Purchases consisted primarily of FHLB stock, and proceeds consisted primarily of redemptions of FHLB stock. Changes in the Company’s FHLB stock holdings directly correlated to FHLB line of credit advances and paydowns.
Current wording
Other securities included FRB stock, FHLB stock, correspondent bank stock, convertible preferred stock, equity method investments and equity securities with readily determinable fair values. During the three months ended March 31, 2026, purchases of other securities totaled $12.7 million, proceeds from maturities and paydowns of other securities totaled $2.2 million, and proceeds from sales of other securities totaled $10.4 million. During the three months ended March 31, 2025 , purchases of other securities totaled $15.9 million and proceeds from other securities totaled $15.7 million. Purchases consisted primarily of FHLB stock, and proceeds consisted primarily of sales of FHLB stock. Changes in the Company’s FHLB stock holdings directly correlate to FHLB line of credit advances and paydowns.
Previous wording
At September 30, 2025 and December 31, 2024, the Company held FRB stock and FHLB stock for regulatory or debt facility purposes. These are restricted securities which, lacking a market, are carried at cost. There have been no identified events or changes in circumstances that may have an adverse effect on the FRB and FHLB stock carried at cost.
Current wording
At March 31, 2026 and December 31, 2025, the Company held FRB, FHLB and correspondent bank stock for regulatory or debt facility purposes. These are restricted securities which, lacking a market, are carried at cost. There have been no identified events or changes in circumstances that may have an adverse effect on the FRB, FHLB and correspondent bank stock carried at cost.
Previous wording
Other securities include convertible preferred stock without a readily determinable fair value. During the three and nine months ended September 30, 2025, there were no purchases of convertible preferred stock. One convertible preferred stock investment underwent an initial public offering and was reclassified as an equity security with a readily determinable fair value during the third quarter of 2025. The Company purchased zero and $0.4 million of convertible preferred stock during the three and nine months ended September 30, 2024, respectively. During the three and nine months ended September 30, 2024, the Company recorded $3.9 million of impairment on convertible preferred stock related to venture capital investments, included in other non-interest income in the Company’s consolidated statements of operations. The Company also sold convertible preferred stock totaling $1.0 million, during the three and nine months ended September 30, 2024, which generated realized gains of $0.1 million recorded in other non-interest income in the Company’s consolidated statements of operations.
Current wording
Other securities include convertible preferred stock without a readily determinable fair value. During the three months ended March 31, 2026 and 2025, the Company had no purchases of convertible preferred stock.
Previous wording
Other securities also include equity method investments totaling $33.3 million and $28.0 million at September 30, 2025 and December 31, 2024, respectively. The increase was primarily due to a $5.0 million investment in Nav, a credit and financial health platform for small business owners. The Company recorded net unrealized gains on equity method investments totaling $1.7 million during the three and nine months ended September 30, 2025. During the three and nine months ended September 30, 2024, the Company recorded net unrealized gains on equity method investments totaling $0.4 million and $0.7 million, respectively. These gains and losses were recorded in other non-interest income in the Company’s consolidated statements of operations. The Company recorded no
Current wording
Other securities also include equity method investments totaling $36.1 million and $32.4 million at March 31, 2026 and December 31, 2025, respectively. Purchases of equity method investments during the three months ended March 31, 2026 and 2025 totaled $2.2 million and $0.5 million, respectively. During the three months ended March 31, 2026 and 2025, the Company recorded net unrealized gains totaling $0.1 million and net unrealized losses totaling $0.3 million, respectively, on equity method investments. These gains and losses were recorded in other non-interest income in the Company’s consolidated statements of operations. Carrying values of equity method investments without a readily determinable fair value are updated periodically and impairments may be taken to reflect a new basis. The Company recorded no impairment related to equity method investments without a readily determinable fair value for the three months ended March 31, 2026 or the year ended December 31, 2025.
Previous wording
During the three and nine months ended September 30, 2025, one convertible preferred stock investment underwent an initial public offering and was reclassified as an equity security with a readily determinable fair value totaling $4.1 million at September 30, 2025. Equity securities with readily determinable fair values are generally traded on an exchange and market prices are readily available. Unrealized gains or losses on equity securities with readily determinable fair values are recognized in other non-interest income in the Company’s consolidated statements of operations. During the three and nine months ended September 30, 2025, the Company recorded $2.1 million of unrealized gains from equity securities with readily determinable fair values.
Current wording
Equity securities with readily determinable fair values are generally traded on an exchange and market prices are readily available. Unrealized gains or losses on equity securities with readily determinable fair values are recognized in other non-interest income in the Company’s consolidated statements of operations. During the three months ended March 31, 2026 and 2025, the Company sold $4.6
Previous wording
The Company maintains a granular and well-diversified loan portfolio with self-imposed concentration limits. At September 30, 2025, loans totaled $7.4 billion, compared to $7.8 billion at December 31, 2024.
Current wording
The Company maintains a granular and well-diversified loan portfolio with self-imposed concentration limits. At March 31, 2026, loans totaled $9.6 billion, compared to $7.4 billion at December 31, 2025. The increase was driven by record quarterly loan fundings totaling $805.5 million on top of acquired Vista loans totaling $1.9 billion.
Previous wording
Our commercial and industrial loan portfolio is highly diversified across industry sectors and geography. At September 30, 2025, there were no industry sectors representing more than 15.0% of our total loan portfolio. Key sectors included government/non-profit loans of $907.6 million, or 12.2% of total loans, and health care/hospital loans of $501.6 million, or 6.8% of total loans. The commercial and industrial portfolio also includes loans to companies that operate in the transportation industry. The transportation industry, trucking in particular, has experienced recent economic challenges. As a result of these industry challenges, some of the transportation loans may be subject to higher credit risk. The Company’s exposure to this industry is small, consisting of $151.4 million, or 2.0% of total loans, at September 30, 2025.
Current wording
Our commercial and industrial loan portfolio is highly diversified across industry sectors and geography. At March 31, 2026, there were no industry sectors representing more than 15.0% of our total loan portfolio. Key sectors included government/non-profit loans of $1.0 billion, or 10.7% of total loans, and health care/hospital loans of $488.0 million, or 5.1% of total loans. The commercial and industrial portfolio also includes loans to companies that operate in the transportation industry. The transportation industry, trucking in particular, has experienced recent economic challenges. As a result of these industry challenges, some of the transportation loans may be subject to higher credit risk. The Company has intentionally reduced exposure to this industry to $130.1 million, or 1.4% of total loans, at March 31, 2026.
Previous wording
Non-owner occupied CRE loans were 132.3% of the Company’s risk based capital, or 22.1% of total loans, and no specific property type comprised more than 10.0% of total loans. The Company maintains little exposure to non-owner occupied CRE retail properties and office properties, comprising 2.1% and 1.1% of total loans, respectively. Multifamily loans totaled $301.2 million, or 4.1% of total loans, at September 30, 2025.
Current wording
Non-owner occupied CRE loans were 163.1% of the Company’s risk based capital, or 26.4% of total loans, and no specific property type comprised more than 7.0% of total loans. The Company maintains limited exposure to non-owner occupied CRE retail properties and office properties, comprising 4.0% and 2.3% of total loans, respectively, including available credit. Multifamily loans totaled $324.9 million, including available credit, or 3.4% of total loans, as of March 31, 2026.
Previous wording
The agriculture industry continues to be impacted by volatile commodity prices and generally by higher input costs, combining to stress margins. Our food and agribusiness portfolio is 3.2% of total loans and is well-diversified across food production, crop and livestock types. Crop and livestock loans represent 1.2% of total loans. We have maintained relationships with food and agribusiness clients that generally possess low leverage and, correspondingly, low bank debt to assets, minimizing any potential credit losses in the future.
Current wording
The agriculture industry continues to be impacted by volatile commodity prices and generally by higher input costs, combining to stress margins. Our food and agribusiness portfolio is 2.4% of total loans and is well-diversified across food production, crop and livestock types. Crop and livestock loans represent 0.7% of total loans. We have maintained relationships with food and agribusiness
Previous wording
New loan origination is a direct result of our ability to recruit and retain top banking talent, connect with clients in our markets and provide needed services at competitive rates. Loan fundings totaled $1.5 billion over the trailing 12 months, led by commercial loan fundings of $997.3 million. Fundings are defined as closed-end funded loans and revolving lines of credit advances, net of any current period paydowns. Management utilizes this more conservative definition of fundings to better approximate the impact of fundings on loans outstanding and ultimately net interest income.
Current wording
New loan origination is a direct result of our ability to recruit and retain top banking talent, connect with clients in our markets and provide needed services at competitive rates. Loan fundings totaled $2.1 billion over the trailing 12 months, led by commercial loan fundings of $1.4 billion. Loan fundings during the three months ended March 31, 2026 totaled a record $805.5 million. Fundings are defined as closed-end funded loans and revolving lines of credit advances, net of any current period paydowns. Management utilizes this more conservative definition of fundings to better approximate the impact of fundings on loans outstanding and ultimately net interest income.
Previous wording
Included in fundings are net (paydowns) fundings under revolving lines of credit totaling ($1,591), $15,490, $21,752, $64,375 and $16,302 for the dates noted in the table above, respectively.
Current wording
Included in fundings are net fundings (paydowns) under revolving lines of credit totaling $65,273, $95,774, ($1,591), $15,490 and $21,752 for the periods noted in the table above, respectively.
Previous wording
Additionally, we have implemented procedures to timely identify loans that may become problematic in order to ensure the most beneficial resolution for the Company. Asset quality is monitored by our credit risk management department and evaluated based on quantitative and subjective factors such as the timeliness of contractual payments received. Additional factors that are considered, particularly with commercial loans over $500,000, include the financial condition and liquidity of individual borrowers and guarantors, if any, and the value of our collateral. To facilitate the oversight of asset quality, loans are categorized based on the number of days past due and on an internal risk rating system, and both are discussed in more detail below.
Current wording
Additionally, we have implemented procedures to timely identify loans that may become problematic in order to ensure the most beneficial resolution for the Company. Asset quality is monitored by our credit risk management department and evaluated based on quantitative and subjective factors such as the timeliness of contractual payments received. Additional factors that are considered, particularly with commercial loans over $500,000, include the financial condition and liquidity of individual borrowers and guarantors, if any, and the value of our collateral. To facilitate the oversight of asset quality, loans are categorized based on the number of days past due and on an internal risk rating system, as discussed in more detail below.
Previous wording
The Company’s policy is to review each prospective credit to determine the appropriateness and the adequacy of security or collateral prior to making a loan. In the event of borrower default, the Company seeks recovery in compliance with lending laws, the respective loan agreements, and credit monitoring and remediation procedures that may include modifying a loan to provide a concession by the Company to the borrower from their original terms due to borrower financial difficulties in order to facilitate repayment. Such modified loans are considered TDMs. TDMs may include principal forgiveness, interest rate reductions, other-than-insignificant-payment delays, term extensions or any combination thereof. TDMs are discussed further in note 5 of our consolidated financial statements. Assets that have been foreclosed on or acquired through deed-in-lieu of foreclosure are classified as OREO until sold, and are carried at the fair value of the collateral less estimated costs to sell, with any initial valuation adjustments charged to the ACL and any subsequent declines in carrying value charged to impairments on OREO.
Current wording
The Company’s policy is to review each prospective credit to determine the appropriateness and the adequacy of security or collateral prior to making a loan. In the event of borrower default, the Company seeks recovery in compliance with lending laws, the respective loan agreements, and credit monitoring and remediation procedures that may include modifying a loan to provide a concession by the Company to the borrower from their original terms due to borrower financial difficulties in order to facilitate repayment. Loan modifications may include principal forgiveness, interest rate reductions, other-than-insignificant-payment delays, term extensions or any combination thereof. Modified loans are discussed further in note 6 of our consolidated financial statements. Assets that have been foreclosed on or acquired through deed-in-lieu of foreclosure are classified as OREO until sold, and are carried at the fair value of the collateral less estimated costs to sell, with any initial valuation adjustments charged to the ACL and any subsequent declines in carrying value charged to impairments on OREO.
Previous wording
Non-performing assets consist of non-accrual loans and OREO. Interest income that would have been recorded had non-accrual loans performed in accordance with their original contract terms during the three and nine months ended September 30, 2025 was $0.5 million and $1.8 million, respectively, and $0.4 million and $1.4 million during the three and nine months ended September 30, 2024, respectively.
Current wording
Non-performing assets consist of non-accrual loans and OREO. Interest income that would have been recorded had non-accrual loans performed in accordance with their original contract terms during the three months ended March 31, 2026 and 2025 was $0.6 million and $0.7 million, respectively.
Previous wording
During the nine months ended September 30, 2025, total non-performing loans decreased $9.3 million, or 25.8%, from December 31, 2024. Loans 30-89 days past due and still accruing interest improved 11 basis points to 0.19% of total loans at September 30, 2025, compared to December 31, 2024. Loans 90 days or more past due and still accruing interest improved three basis points to 0.16% of total loans at September 30, 2025, compared to December 31, 2024.
Current wording
At March 31, 2026, non-performing loans to total loans improved three basis points to 0.31%, compared to December 31, 2025. Loans 30-89 days past due and still accruing interest were 0.22% and 0.16% of total loans at March 31, 2026 and December 31, 2025, respectively. Loans 90 days or more past due and still accruing interest were 0.28% and 0.21% of total loans at March 31, 2026 and December 31, 2025, respectively. Non-performing assets to total loans and OREO improved one basis point to 0.35%, during the three months ended March 31, 2026, compared to December 31, 2025.
Previous wording
Loans on non-accrual, in bankruptcy and TDMs with a balance greater than $250 thousand are excluded from the pooled analysis and are evaluated individually. If management determines that foreclosure is probable, expected credit losses are evaluated based on the criteria listed below, adjusted for selling costs as appropriate. Typically, these loans consist of commercial, commercial real estate and
Current wording
Loans on non-accrual, in bankruptcy and modified loans with a balance greater than $250 thousand are excluded from the pooled analysis and are evaluated individually. If management determines that foreclosure is probable, expected credit losses are evaluated based on the criteria listed below, adjusted for selling costs as appropriate. Typically, these loans consist of commercial, commercial
Previous wording
agriculture loans and exclude homogeneous loans such as residential real estate and consumer loans. Specific allowances are determined by collectively analyzing:
Current wording
real estate and agriculture loans and exclude homogeneous loans such as residential real estate and consumer loans. Specific allowances are determined by collectively analyzing:
Previous wording
During the three and nine months ended September 30, 2025, net recoveries totaled $0.9 million and net charge-offs totaled $15.2 million, respectively. Charge-offs were elevated during the first quarter of 2025 due to an $8.9 million charge-off from one credit due to suspected fraud by the borrower, which the Company believes is an isolated circumstance within the loan portfolio. The ratio of annualized net recoveries to average total loans totaled 0.05% for the three months ended September 30, 2025, and the ratio of annualized net charge-offs to average total loans totaled 0.27% for the nine months ended September 30, 2025. Net charge-offs on loans during the three and nine months ended September 30, 2024 totaled $3.4 million and $7.6 million, respectively, and the ratio of annualized net charge-offs to average total loans totaled 0.18% and 0.13%, respectively.
Current wording
Net charge-offs on loans during the three months ended March 31, 2026 totaled $7.7 million. The ratio of annualized net charge-offs to average total loans totaled 0.34%. Net charge-offs on loans during the three months ended March 31, 2025 totaled $15.1 million, and the ratio of annualized net charge-offs to average total loans totaled 0.80%.
Previous wording
The Company has elected to exclude AIR from the ACL calculation. As of September 30, 2025 and December 31, 2024, AIR from loans totaled $45.1 million and $41.5 million, respectively. When a loan is placed on non-accrual, any recorded AIR is reversed against interest income.
Current wording
The Company has elected to exclude AIR from the ACL calculation. As of March 31, 2026 and December 31, 2025, AIR from loans totaled $51.9 million and $38.3 million, respectively. When a loan is placed on non-accrual, any recorded AIR is reversed against interest income.
Showing the first 40 of 69 pairs. Open the source sections for the rest.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
In November 2024, the FASB issued ASU 2024-03,Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Topic 220): Disaggregation of Income Statement Expenses. The update requires public business entities to disclose specific components of certain expense categories. This includes expense categories such as employee compensation, depreciation,
Current report — wording carried from elsewhere
clients that generally possess low leverage and, correspondingly, low bank debt to assets, minimizing potential credit losses in the future.
Current report — wording carried from elsewhere
The Company recorded provision expense for credit losses totaling $4.0 million, including $4.3 million provision expense for funded loans and $0.3 million of provision release for unfunded loan commitments, during the three months ended March 31, 2026. Provision expense for credit losses during the three months ended March 31, 2026 was primarily driven by loan growth during the quarter. During the three months ended March 31, 2025, the Company recorded provision expense for credit losses totaling $10.2 million,
Current report — wording carried from elsewhere
fluctuate based on the level of borrowings outstanding and level of assets pledged. The table below details those amounts as of the dates shown:
Current report — wording carried from elsewhere
200 basis point decrease in interest rates on net interest income based on the interest rate risk model at March 31, 2026 and December 31, 2025:
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
prospective basis. Early adoption is permitted. The Company has evaluated the impact from ASU 2025-05 and does not expect the adoption of this pronouncement to have a material impact on its financial statements.
Previous report — wording carried elsewhere
impairment related to equity method investments for the nine months ended September 30, 2025 or the year ended December 31, 2024.
Previous report — wording carried elsewhere
Service program, which allows depositors to receive reciprocal FDIC insurance coverage. The Company had $0.8 billion and $1.0 billion of deposits in the program at September 30, 2025 and December 31, 2024, respectively.
Previous report — wording carried elsewhere
The table below presents the components of net interest income on an FTE basis for the nine months ended September 30, 2025 and 2024:
Previous report — wording carried elsewhere
interest rate environment and market conditions, our consumer banking strategy is to focus on attracting and maintaining both lower-cost transaction accounts and time deposits.