FB Financial Corp
For the period ended Jun 30, 2025. Filed Aug 4, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 4, 2025
FBK$54.17-0.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-05.
0001649749-25-000128
Item 2. Management’s discussion and analysis of financial condition and results of operationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-04.
0001649749-25-000189
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 206 previous paragraphs and 260 current paragraphs.
111 unchanged; 82 reworded; 53 added; 10 removed; 3 previous and 14 current paragraphs rearranged.
Tables are not compared: 32 previous and 36 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 (53)
Current report
Mergers
Current report
Southern States Bancshares, Inc.
Current report
On March 31, 2025, the Company announced it had entered into an agreement and plan of merger to acquire Southern States Bancshares Inc. and its wholly-owned subsidiary, Southern States Bank, in an all-stock transaction.
Current report
On July 1, 2025 the Company completed its acquisition of Southern States. This merger strengthens the Company’s presence in existing markets, such as Birmingham and Huntsville, Alabama, while expanding the Company’s footprint further into Alabama and Georgia. At closing, Southern States had approximately $2.87 billion in total assets, loans of $2.32 billion and deposits of $2.47 billion. Under the terms of the agreement, each outstanding share of Southern States common stock was converted into the right to receive 0.80 shares of the Company’s stock. Additionally, fractional shares and outstanding stock options were settled in cash. As a result, total consideration paid was $368.4 million based on the Company’s closing stock price of $45.30 per share on June 30, 2025. The Company expects system conversions related to the transaction to be completed in the third quarter of 2025.
Current report
Provision for credit losses of $5.3 million was recognized for the three months ended June 30, 2025 and $2.2 million for the three months ended June 30, 2024. The increase was primarily due to the change in the CECL loss estimation methodology, including a change in forward-looking funding assumptions for residential lines and commercial lines. Refer to the section “Provision for credit losses” and “Note 1, “Basis of presentation” in this Report for further discussion on the change in the CECL loss estimation methodology.
Current report
Noninterest expense increased to $81.3 million for the three months ended June 30, 2025, compared with $75.1 million for the three months ended June 30, 2024. The increase in noninterest expense was driven by $2.7 million in merger and integration costs associated with our merger with Southern States and an increase in other noninterest expense of $2.1 million, including modest increases across a range of expense categories.
Current report
Income tax benefit for the three months ended June 30, 2025 was $12.7 million compared to income tax expense of $10.9 million for the three months ended June 30, 2024. The change reflects the income tax effect of a $60.5 million loss on sale of AFS debt securities and a one-time tax benefit of $10.7 million due to the expiration of the statute of limitations with respect to an amended income tax return and the associated interest for the three months ended June 30, 2025.
Current report
Our net income decreased during the six months ended June 30, 2025 to $42.3 million from $67.9 million for the six months ended June 30, 2024. Diluted earnings per common share was $0.91 and $1.45 for the six months ended June 30, 2025 and 2024, respectively. Our net income represented a ROAA of 0.65% and 1.09% for the six months ended June 30, 2025 and 2024, respectively, and a ROAE of 5.38% and 9.31% for the same periods. Our ratio of ROATCE for the six months ended June 30, 2025 and 2024 was 6.38% and 11.2%, respectively.
Current report
During the six months ended June 30, 2025, our net interest income increased to $219.1 million from $202.1 million for the six months ended June 30, 2024. Our net interest margin, on a tax-equivalent basis, increased to 3.61% for the six months ended June 30, 2025 as compared to 3.49% for the six months ended June 30, 2024. The increase in net interest margin was primarily driven by increases in interest income on loans HFI and investment securities and decreases in interest expense paid on interest-bearing deposits and other borrowings.
Current report
Provision for credit losses of $7.6 million was recognized for the six months ended June 30, 2025 and $3.0 million for the six months ended June 30, 2024. The increase was primarily due to the change in the CECL loss estimation methodology, including a change in forward-looking funding assumptions for residential lines and commercial lines. Refer to the section “Provision for credit losses” and “Note 1, “Basis of presentation” in this Report for further discussion on the change in the CECL loss estimation methodology
Current report
Noninterest income for the six months ended June 30, 2025 decreased by $45.1 million resulting in a loss of $11.5 million, compared to $33.6 million for prior year period. The decrease in noninterest income was primarily driven by the recognition of a $60.5 million net loss on investment securities stemming from the sale of $266.5 million of AFS debt securities during the six months ended June 30, 2025 compared to a net loss of $16.2 million from the sale of $207.9 million of AFS debt securities during the six months ended June 30, 2024. Refer to the section “Other earning assets” for additional information on the sale of the AFS debt securities.
Current report
Noninterest expense increased to $160.8 million for the six months ended June 30, 2025, compared with $147.5 million for the six months ended June 30, 2024. The increase in noninterest expense was reflective of an increase in salaries, commissions and benefits of $4.1 million, merger and integration costs of $3.1 million, advertising expense of $1.6 million and other expense of $4.0 million including technology and platform fee increases and modest increases across a range of other expense categories.
Current report
Income tax benefit for the six months ended June 30, 2025 was $3.2 million compared to income tax expense of $17.2 million for the six months ended June 30, 2024. The change reflects the income tax effect of a $60.5 million loss on sale of AFS debt securities, as well as a one-time tax benefit of $10.7 million due to the expiration of the statute of limitations with respect to an amended income tax return and the associated interest for the for the six months ended June 30, 2025. Income tax expense for the six months ended June 30, 2024, included the income tax effect of a $16.2 million loss on sale of AFS debt securities.
Current report
The Banking segment reported a loss before taxes of $6.7 million as compared to income of $50.1 million for the previous period. Net interest income totaled $108.9 million during the three months ended June 30, 2025 compared to $101.2 million during the previous period. Provisions for credit losses on loans HFI and unfunded loan commitments resulted in $0.6 million of provision expense during the current period as compared to $2.4 million during the previous period. The Banking segment recorded a noninterest loss of $47.7 million in the current period as compared to income of $13.5 million in the previous period. This decrease was mainly attributable to a net loss on investment securities of $60.5 million from the sale of $266.5 million AFS debt securities during the three months ended June 30, 2025. Noninterest expense increased to $67.3 million for the current period compared to $62.2 million for the for the previous period due primarily to an increase in merger and integration costs associated with the Southern States merger and modest increases across a range of other expense categories.
Current report
Activity in our Mortgage segment resulted in a loss before income taxes of $3.0 million for the current period, as compared to $0.8 million of income before taxes in the prior period. Net interest income was $2.5 million for the current period and $1.4 million for the prior period. Provisions for credit losses on loans HFI and unfunded loan commitments resulted in provision expense of $4.8 million during the current period compared to a reversal of $0.2 million of provision expense during the prior period. The increase in provisions for credit losses was due to a change in the CECL loss estimation methodology, which notably impacted the Company's reserves on 100% financed 1-to-4 mortgages, as well as a notable change in forecasts associated with home prices which impacted mortgage reserves more broadly. Mortgage banking income increased $1.1 million to $13.0 million during the current period compared to $11.9 million in the prior period.
Current report
Activity in our Mortgage segment resulted in a loss before income taxes of $1.5 million for the current period, as compared to $2.5 million of income before taxes in the prior period. Net interest income was $4.4 million for the current period and $2.5 million for the prior period. Provisions for credit losses on loans HFI and unfunded loan commitments resulted in provision expense of $4.9 million during the current period compared to a reversal of $0.3 million of provision expense during the prior period. As noted above, the increase in provisions for credit losses was due to a change in the CECL loss estimation methodology, which notably impacted the Company's reserves on 100% financed 1-to-4 mortgages, as well as a notable change in forecasts associated with home prices which impacted mortgage reserves more broadly. Mortgage banking income increased $1.0 million to $25.5 million during the current period compared to $24.5 million in the prior period.
Current report
Noninterest expense for the six months ended June 30, 2025 and 2024 was $26.6 million and $25.1 million, respectively. This increase was reflective of increases in salaries and employee benefits and allocated support and overhead expenses.
Current report
Net interest income increased to $112.2 million for the three months ended June 30, 2025 as compared to $103.3 million for the three months ended June 30, 2024. The change in net interest income was driven by a $4.9 million increase in interest income and a decrease in interest expense of $4.1 million. The increases in net interest income and net interest margin were primarily driven by increases in interest income on loans HFI and investment securities and decreases in interest expense paid on interest-bearing deposits and other borrowings.
Current report
Interest income was $182.9 million for the three months ended June 30, 2025, compared to $178.1 million for the three months ended June 30, 2024, an increase of $4.9 million, which was primarily driven by an increase in volume of interest earning assets, most notably loans HFI, partially offset by a decrease in yields due to lower interest rates.
Current report
Interest income on loans HFI increased $3.7 million to $158.0 million for the three months ended June 30, 2025 from $154.2 million for the three months ended June 30, 2024 primarily due to increased volume partially offset by lower yields. The yield on loans HFI was 6.44% for the three months ended June 30, 2025, down 26 basis points from the three months ended June 30, 2024.
Current report
(1) Includes tax equivalent adjustment using combined marginal tax rate of 26.06%.
Current report
Interest income on investment securities increased $2.5 million to $16.1 million for the three months ended June 30, 2025 from $13.5 million for the three months ended June 30, 2024 due to the increase in yield on these investments from the portfolio restructuring transactions in prior years. The yield on taxable investment securities increased 49 basis points to 3.78% for the three months ended June 30, 2025 compared to 3.29% for the three months ended June 30, 2024.
Current report
Interest income was $363.4 million for the six months ended June 30, 2025, compared to $354.9 million for the six months ended June 30, 2024, an increase of $8.5 million, which was primarily driven by an increase in volume of interest earning assets, most notably loans HFI, partially offset by a decrease in yields due to lower interest rates.
Current report
ended June 30, 2025 and 2024, respectively.
Current report
Yield/rate and volume analysis
Current report
As of June 30, 2025, we utilize the discounted cash flow estimation technique, adjusted for current conditions and reasonable and supportable forecasts, to estimate the expected credit losses of its loan segments, except consumer and other loans, which utilizes the weighted average remaining maturity loss rate technique. We determined that the use of the updated estimate techniques and related inputs and assumptions enhances the transparency, accuracy and relevance of information relating to its allowance for credit losses through the application of data and calculations more clearly calibrated to our historical experience, the nature of its loan portfolio and unfunded commitments, and expectations for future economic conditions and corresponding expected credit losses.
Current report
These changes represent a change in accounting estimate under ASC 250, “Accounting Changes and Error Corrections”, and, accordingly, is applied prospectively in the period of change and did not have a material effect on the Company’s financial statements. See “Note 1, “Basis of presentation” in this Report for further discussion on the change in estimate.
Current report
The discounted cash flow was calibrated using a regression analysis that relates one or more economic variables to our historical default rates and selected peer banks for each loan segment. We determined that national unemployment, national housing price index, national commercial real estate index and prime rates were the key economic variables that were most correlated to our historical loss performance and our peer banks. Reasonable and supportable forecasts of these economic indicators are utilized within the discounted cash flow to estimate expected credit losses for each loan segment. Current and forecast economic conditions, including those affecting these and other economic variables or macroeconomic conditions, such as global conflicts or tariffs, may continue to lead to increased volatility in our calculated level of allowance for credit losses.
Current report
Prior to the changes described above, our estimates for credit losses calculation utilized lifetime loss rate model and included economic forecasts for unemployment, gross domestic product, as well as other macroeconomic events which may impact our loan portfolio. Refer to Note 1, “Basis of presentation and summary of significant accounting policies” in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, for a detailed discussion regarding ACL methodology.
Current report
We recognized a reversal of credit losses on loans HFI of $1.1 million and provision expense of $3.9 million for the three months ended June 30, 2025 and 2024, respectively. For the three months ended June 30, 2025, the reversal of credit losses on loans HFI was primarily the result of a $6.8 million reduction due to the change in the CECL loss estimation methodology, partially offset by $5.7 million of provision growth. The increase in the growth of the provision was driven by changes in balances of the underlying loan portfolio coupled with changes in the forward-looking macroeconomic outlook during the current quarter, which combined impacted residential real estate, consumer and other, and commercial and industrial loans most directly. For the three months ended June 30, 2024, the increase in the provision for credit losses on loans HFI was driven by increases in specific reserves for individually evaluated relationships offset by reductions in reserves for construction loans. The reduction for construction loans was primarily due to reduction in balances outstanding for the portfolio.
Current report
We also estimate expected credit losses on off-balance sheet loan commitments that are not accounted for as derivatives. When applying the CECL methodology to estimate expected credit loss, we consider the likelihood that funding will occur, the contractual period of exposure to credit loss, the risk of loss, historical loss experience, and current conditions along with expectations of future economic conditions. We recorded a provision expense for credit losses on unfunded commitments of $6.4 million and a reversal of provision expense of $1.7 million for the three months ended June 30, 2025 and 2024, respectively. The provision expense was due largely to a $6.5 million impact from the change in the CECL loss estimation methodology and changes in forward-looking funding assumptions which most notably impacted our residential and commercial lines. For three months ended June 30, 2024, the reversal was due to a $37.6 million decrease in our unfunded commitments during the period, including a $73.8 million decrease in our construction portfolio.
Current report
Net loss from investment securities was $60.5 million for the three months ended June 30, 2025. There was no net gain or loss from investment securities recognized during the same period of the prior year. The net loss from investment securities during the three months ended June 30, 2025 was the result of management's election to sell $266.5 million of AFS debt securities with the intent to utilize the proceeds to redeem outstanding subordinated and trust preferred debt, as well as originating higher yielding loans. Refer to the section “Other earnings assets” for additional information on the sale of the AFS debt securities.
Current report
Noninterest income amounted to a $11.5 million loss for the six months ended June 30, 2025, a decrease of $45.1 million, as compared to income of $33.6 million for the six months ended June 30, 2024. Excluding the recognition of the $60.5 million and $16.2 million of net loss from investment securities sales recognized during the six months ended June 30, 2025 and 2024, respectively, noninterest income was $49.0 million and $49.8 million for the six months ended June 30, 2025 and 2024, respectively.
Current report
Mortgage banking income was $25.5 million for the six months ended June 30, 2025, an increase of $1.0 million compared to the prior period. The increase includes an increase from gains on sale and related fair value changes of $1.5 million to $18.7 million in the current period compared to $17.2 million in the prior period. This was impacted by the increase in interest rate lock volume of $76.1 million, or 10.0% during the current period over the same period in the prior year.
Current report
Service charges on deposit accounts increased $0.6 million during the six months ended June 30, 2025 to $6.9 million as compared to $6.3 million during the six months ended June 30, 2024.
Current report
ATM and interchange fees were $5.6 million for the six months ended June 30, 2025, compared to $5.8 million for the six months ended June 30, 2024.
Current report
Other income decreased $2.4 million to $3.9 million during the six months ended June 30, 2025 as compared to $6.3 million during the six months ended June 30, 2024. This decrease was driven by a $1.2 million loss associated with our proportionate share of loss on our equity method investment during the six months ended June 30, 2025 and a $2.1 million increase in BOLI income resulting from proceeds from payment of death benefits recognized during the six months ended June 30, 2024.
Current report
Noninterest expense increased by $6.2 million, or 8.2%, during the three months ended June 30, 2025 to $81.3 million as compared to $75.1 million in the three months ended June 30, 2024. The increase in noninterest expense was driven by increases in merger and integration costs associated with the Southern States merger, as well as other expense.
Current report
Other expense is comprised of expense that does not typically fit into other expense categories and includes mortgage servicing expenses, regulatory fees and deposit insurance assessments, software license and maintenance fees and various other miscellaneous expenses. Other expense increased $2.1 million during the three months ended June 30, 2025 to $17.8 million compared to $15.7 million during the three months ended June 30, 2024. The increase was primarily driven by modest increases across a range of expense categories, including technology and platform fees, software license and maintenance fees, card transaction fees, servicing fees and other operating expenses. No single category accounted for a significant portion of the overall increase.
Current report
Occupancy and equipment expense of $13.3 million and $12.9 million was recognized for the six months ended June 30, 2025 and 2024.
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Removed paragraphs (10)
Previous report
Three months ended March 31, 2025 compared to three months ended March 31, 2024
Previous report
Provision for credit losses of $2.3 million was recognized for the three months ended March 31, 2025 and $0.8 million for the period ended March 31, 2024. The increase was primarily due to charge-off activity and increases in unfunded commitments.
Previous report
Noninterest expense increased to $79.5 million for the three months ended March 31, 2025, compared with $72.4 million for the three months ended March 31, 2024. The increase in noninterest expense is due to increases in salaries, commissions and employee benefits of $3.7 million, advertising of $1.3 million and other noninterest expense of $1.9 million, including a $1.0 million increase in technology and platform fees and a franchise tax benefit of $0.2 million recognized during the three months ended March 31, 2024.
Previous report
The Mortgage segment contributed $1.5 million of income before taxes for the current period, as compared to $1.6 million of income before taxes in the prior period. Net interest income was $1.9 million for the current period and $1.0 million for the prior period. Provisions for credit losses on loans HFI and unfunded loan commitments resulted in provision expense of $0.1 million during the current period compared to a reversal of $0.1 million of provision expense during the prior period. Mortgage banking income remained relatively stable between periods at $12.4 million and $12.6 million in the current and prior periods, respectively.
Previous report
Interest income on deposits with other financial institutions increased $1.8 million to $8.9 million for the three months ended March 31, 2025 from $7.1 million for the three months ended March 31, 2024. This increase is primarily volume driven as average balances increased to $811.2 million for the three months ended March 31, 2025 from $530.4 million for the three months ended March 31, 2024.
Previous report
Of the loans shown above with floating interest rates as of March 31, 2025, many have interest rate floors as follows:
Previous report
We also maintain an allowance for credit losses on unfunded commitments in other liabilities, which increased to $6.5 million as of March 31, 2025 from $6.1 million as of December 31, 2024 due to a $25.5 million increase in unfunded loan commitments during the period. Notably, construction unfunded loan commitments increased during the three months ended March 31, 2025 due to reduced utilization on existing revolving lines and a seasonal increase in new projects.
Previous report
Partially offsetting the decrease in interest-bearing checking was our deposits from municipal and governmental entities, also known as public funds, which increased by $82.8 million during the period. The increase in public funds was largely due to seasonal inflows.
Previous report
Customer time deposits decreased by $16.4 million from December 31, 2024 which was largely driven by management's decision not to renew certain maturing deposits given the change in market interest rates.
Previous report
FHLB short-term advances
Reworded paragraphs (82)
Previous wording
The following is a discussion of our financial condition as of March 31, 2025 and December 31, 2024, and our results of operations for the three months ended March 31, 2025 and 2024, and should be read in conjunction with our audited consolidated financial statements set forth in our Annual Report on Form 10-K for the year ended December 31, 2024, that was filed with the SEC on February 25, 2025, and with the accompanying unaudited notes to the condensed consolidated financial statements set forth in this Report.
Current wording
The following is a discussion of our financial condition as of June 30, 2025 and December 31, 2024, and our results of operations for the three and six months ended June 30, 2025 and 2024, and should be read in conjunction with our audited consolidated financial statements set forth in our Annual Report on Form 10-K for the year ended December 31, 2024, that was filed with the SEC on February 25, 2025, and with the accompanying unaudited notes to the condensed consolidated financial statements set forth in this Report.
Previous wording
Certain statements contained in this Report that are not historical in nature may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements regarding the Company’s future plans, results, strategies, and expectations, including expectations around changing economic markets and statements regarding the proposed merger of Southern States Bancshares, Inc. (“Southern States”) with the Company (the “Proposed Merger”) and expectations with regard to the benefits of the Proposed Merger. These statements can generally be identified by the use of the words and phrases “may,” “will,” “should,” “could,” “would,” “goal,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” “target,” “aim,” “predict,” “continue,” “seek,” and other variations of such words and phrases and similar expressions. These forward-looking statements are not historical facts, and are based upon management’s current expectations, estimates, and projections, many of which, by their nature, are inherently uncertain and beyond the Company’s control. The inclusion of these forward-looking statements should not be regarded as a representation by the Company or any other person that such expectations, estimates, and projections will be achieved. Accordingly, the Company cautions shareholders and investors that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, and uncertainties that are difficult to predict. Actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. A number of factors could cause actual results to differ materially from those contemplated by the forward-looking statements including, without limitation, (1) current and future economic conditions, including the effects of inflation, interest rate fluctuations, changes in the economy or global supply chain, supply-demand imbalances affecting local real estate prices, and high unemployment rates in the local or regional economies in which the Company operates and/or the US economy generally, (2) changes or the lack of changes in government interest rate policies and the associated impact on the Company’s business, net interest margin, and mortgage operations, (3) increased competition for deposits, (4) changes in the quality or composition of the Company’s loan or investment portfolios, including adverse developments in borrower industries or in the repayment ability of individual borrowers or issuers of investment securities, or the impact of interest rates on the value of our investment securities portfolio, (5) any deterioration in commercial real estate market fundamentals, (6) risks associated with the Proposed Merger, including (a) the risk that the cost savings and any revenue synergies from the Proposed Merger is less than or di…
Excerpt shortened here; the source contains the full paragraph.
Current wording
Certain statements contained in this Report that are not historical in nature may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements regarding the Company’s future plans, results, strategies, and expectations, including expectations around changing economic markets and statements regarding the merger of Southern States Bancshares, Inc. (“Southern States”) with the Company (the “Merger”) and expectations with regard to the benefits of the Merger. These statements can generally be identified by the use of the words and phrases “may,” “will,” “should,” “could,” “would,” “goal,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” “target,” “aim,” “predict,” “continue,” “seek,” and other variations of such words and phrases and similar expressions. These forward-looking statements are not historical facts, and are based upon management’s current expectations, estimates, and projections, many of which, by their nature, are inherently uncertain and beyond the Company’s control. The inclusion of these forward-looking statements should not be regarded as a representation by the Company or any other person that such expectations, estimates, and projections will be achieved. Accordingly, the Company cautions shareholders and investors that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, and uncertainties that are difficult to predict. Actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. A number of factors could cause actual results to differ materially from those contemplated by the forward-looking statements including, without limitation, (1) current and future economic conditions, including the effects of inflation, interest rate fluctuations, changes in the economy or global supply chain, supply-demand imbalances affecting local real estate prices, and high unemployment rates in the local or regional economies in which the Company operates and/or the US economy generally, (2) changes or the lack of changes in government interest rate policies and the associated impact on the Company’s business, net interest margin, and mortgage operations, (3) increased competition for deposits, (4) changes in the quality or composition of the Company’s loan or investment portfolios, including adverse developments in borrower industries or in the repayment ability of individual borrowers or issuers of investment securities, or the impact of interest rates on the value of our investment securities portfolio, (5) any deterioration in commercial real estate market fundamentals, (6) risks associated with the Merger, including (a) the risk that the cost savings and any revenue synergies from the Merger is less than or different from expectations, (b) disruption fro…
Excerpt shortened here; the source contains the full paragraph.
Previous wording
Our financial statements are prepared in accordance with GAAP and general practices within the banking industry. Within our financial statements, certain financial information contains approximate measurements of financial effects of transactions and impacts at the consolidated balance sheet dates and our results of operations for the reporting periods. We monitor the status of proposed and newly issued accounting standards to evaluate the impact on our financial condition and results of operations. Our accounting policies, including the impact of any newly issued accounting standards if applicable, are discussed in further detail in Note 1, “Basis of presentation and summary of significant accounting policies,” in the notes to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2024.
Current wording
Our financial statements are prepared in accordance with GAAP and general practices within the banking industry. Within our financial statements, certain financial information contains approximate measurements of financial effects of transactions and impacts at the consolidated balance sheets dates and our results of operations for the reporting periods. We monitor the status of proposed and newly issued accounting standards to evaluate the impact on our financial condition and results of operations. Our accounting policies, including the impact of any newly issued accounting standards if applicable, are discussed in further detail in Note 1, “Basis of presentation and summary of significant accounting policies,” in the notes to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2024. Further, any updates made to our accounting policies since our Annual report are detailed in Note 1, "Basis of presentation," within this Report herein.
Previous wording
(4)Includes $27.2 million, $20.9 million and $31.4 million of optional rights to repurchase delinquent GNMA loans as of March 31, 2025, March 31, 2024 and December 31, 2024, respectively.
Current wording
(4)Includes $21.0 million, $22.4 million and $31.4 million of optional rights to repurchase delinquent GNMA loans as of June 30, 2025, June 30, 2024 and December 31, 2024, respectively.
Previous wording
We are a financial holding company headquartered in Nashville, Tennessee. We operate primarily through our wholly-owned subsidiary bank, FirstBank, and its subsidiaries. FirstBank provides a comprehensive suite of commercial and consumer banking services to clients in select markets in Tennessee, Alabama, Kentucky, North Carolina and North Georgia. As of March 31, 2025, our footprint included 77 full-service branches serving markets across Tennessee, including Nashville, Chattanooga (including North Georgia), Knoxville, Memphis, and Jackson in addition to Bowling Green, Kentucky, and Birmingham, Florence and Huntsville, Alabama. Additionally, our banking services extend to community markets throughout our footprint. FirstBank also provides retail mortgage banking services utilizing its bank branch network and mortgage banking offices strategically located throughout the southeastern United States.
Current wording
We are a financial holding company headquartered in Nashville, Tennessee. We operate primarily through our wholly-owned subsidiary bank, FirstBank, and its subsidiaries. FirstBank provides a comprehensive suite of commercial and consumer banking services to clients in select markets in Tennessee, Alabama, Kentucky, North Carolina and Georgia. As of June 30, 2025, our footprint included 78 full-service branches serving markets across Tennessee, including Nashville, Chattanooga (including North Georgia), Knoxville, Memphis, and Jackson in addition to Bowling Green, Kentucky, and Birmingham, Florence and Huntsville, Alabama. Additionally, our banking services extend to community markets throughout our footprint. FirstBank also provides retail mortgage banking services utilizing its bank branch network and mortgage banking offices strategically located throughout the southeastern United States.
Previous wording
Our net income increased during the three months ended March 31, 2025 to $39.4 million from $28.0 million for the three months ended March 31, 2024. Diluted earnings per common share were $0.84 and $0.59 for the three months ended March 31, 2025 and 2024, respectively. Our net income represented a ROAA of 1.21% and 0.89% for the three months ended March 31, 2025 and 2024, respectively, and a ROAE of 10.1% and 7.70% for the same periods. Our ROATCE for the three months ended March 31, 2025 and 2024 were 11.9% and 9.29%, respectively. See “GAAP reconciliation and management explanation of non-GAAP financial measures” in this Report for a discussion of tangible common equity and return on average tangible common equity.
Current wording
We recognized net income of $2.9 million during the three months ended June 30, 2025 compared to $40.0 million for the three months ended June 30, 2024. Diluted earnings per common share were $0.06 and $0.85 for the three months ended June 30, 2025 and 2024, respectively. Our net income represented a ROAA of 0.09% and 1.30% for the three months ended June 30, 2025 and 2024, respectively, and a ROAE of 0.74% and 10.9% for the same periods. Our ROATCE for the three months ended June 30, 2025 and 2024 were 0.87% and 13.1%, respectively. See “GAAP reconciliation and management explanation of non-GAAP financial measures” in this Report for a discussion of tangible common equity and return on average tangible common equity.
Previous wording
Net interest income increased to $107.6 million for the three months ended March 31, 2025 compared with $99.5 million for the three months ended March 31, 2024. Net interest income for the three months ended March 31, 2025 reflected our efforts to balance the growth of our asset and deposit bases while managing the impact of interest rates. Our net interest margin, on a tax-equivalent basis, increased to 3.55% for the three months ended March 31, 2025 as compared to 3.42% for the three months ended March 31, 2024.
Current wording
Net interest income increased to $111.4 million for the three months ended June 30, 2025 compared with $102.6 million for the three months ended June 30, 2024. Our net interest margin, on a tax-equivalent basis, increased to 3.68% for the three months ended June 30, 2025 as compared to 3.57% for the three months ended June 30, 2024. Net interest income for the three months ended June 30, 2025 reflected increases in interest income on loans HFI and investment securities and decreases in interest expense paid on interest-bearing deposits and other borrowings.
Previous wording
Noninterest income for the three months ended March 31, 2025 increased by $15.1 million to $23.0 million, compared to $8.0 million for the three months ended March 31, 2024. The increase was primarily driven by the recognition of a $16.2 million net loss on investment securities stemming from the sale of $207.9 million of AFS debt securities during the three months ended March 31, 2024. Refer to the section “Other earning assets” for additional information on the sale of the AFS debt securities.
Current wording
Noninterest income for the three months ended June 30, 2025 decreased by $60.2 million to a loss of $34.6 million, compared to $25.6 million for the three months ended June 30, 2024. The decrease was driven by the recognition of a $60.5 million net loss on investment securities stemming from the sale of $266.5 million AFS debt securities during the three months ended June 30, 2025. Refer to the section “Other earning assets” for additional information on the sale of the AFS debt securities.
Previous wording
The Banking segment contributed $47.3 million of income before taxes for the current period as compared to $32.6 million for the previous period. Net interest income totaled $105.8 million during the three months ended March 31, 2025 compared to $98.5 million during the previous period. Provisions for credit losses on loans HFI and unfunded loan commitments resulted in $2.2 million of provision expense during the current period as compared to $0.8 million during the previous period. The Banking segment recorded noninterest income of $10.7 million in the current period as compared to a $4.8 million loss in the previous period. This increase was mainly attributable to a net loss on investment securities of $16.2 million from the sale of $207.9 million AFS debt securities during the previous period. Noninterest expense increased to $66.9 million for the current period compared to $60.2 million for the for the previous period due primarily to an increase in salaries and benefits, advertising, technology and platform fees, merger and integration costs and a minor franchise tax benefit recognized in the previous period.
Current wording
The Banking segment contributed $40.6 million of income before taxes for the current period as compared to $82.7 million for the previous period. Net interest income totaled $214.7 million during the six months ended June 30, 2025 compared to $199.7 million during the previous period. Provisions for credit losses on loans HFI and unfunded loan commitments resulted in $2.8 million of provision expense during the current period as compared to $3.3 million during the previous period. The Banking segment recorded noninterest loss of $37.1 million in the current period as compared to income of $8.7 million in the previous period. Similar to above, this increase was mainly attributable to a net loss on investment securities of $60.5 million from the sale of $266.5 million AFS debt securities during the six months ended June 30, 2025 compared to a net loss on investment securities of $16.2 million from the sale of $207.9 million AFS debt securities during the previous period. Noninterest expense increased to $134.2 million for the current period compared to $122.4 million for the for the previous period due primarily to an increase in salaries and benefits, merger and integration costs associated with the Southern States merger, advertising, technology and platform fees and modest increases across a range of other expense categories. Additionally, a minor franchise tax benefit was recognized in the previous period.
Previous wording
Noninterest expense for the current and prior periods were $12.6 million and $12.2 million, respectively. This increase is reflective of an increase in allocated support and overhead expenses.
Current wording
Noninterest expense for the three months ended June 30, 2025 and 2024 was $13.9 million and $12.9 million, respectively. This increase was reflective of increases in salaries and employee benefits and allocated support and overhead expenses.
Previous wording
Our tax-exempt income is converted to a tax-equivalent basis by adjusting for the combined federal and blended state statutory income tax rate of 26.06% for the three months ended March 31, 2025 and 2024.
Current wording
Our tax-exempt income is converted to a tax-equivalent basis by adjusting for the combined federal and blended state statutory income tax rate of 26.06% for the three and six months ended June 30, 2025 and 2024.
Previous wording
During the three months ended March 31, 2025, the U.S. Treasury yield curve fell in intermediate and longer-term maturities given uncertainty around tariffs and economic growth. In contrast, during the three months ended March 31, 2024, the U.S. Treasury yield curve remained inverted, reflecting tighter monetary policy and higher short-term interest rates. The Federal Funds Target Rate range was 4.25% - 4.50% and 5.25% - 5.50% as of March 31, 2025 and March 31, 2024, respectively.
Current wording
During the three and six months ended June 30, 2025, the U.S. Treasury yield curve fell given uncertainty around tariffs and economic growth. In contrast, during the three and six months ended June 30, 2024, the U.S. Treasury yield curve remained inverted, reflecting tighter monetary policy and higher short-term interest rates. The Federal Funds Target Rate range was 4.25% - 4.50% and 5.25% - 5.50% as of June 30, 2025 and June 30, 2024, respectively.
Previous wording
Three months ended March 31, 2025 compared to the three months ended March 31, 2024
Current wording
Interest expense was $70.7 million for the three months ended June 30, 2025, a decrease of $4.1 million as compared to the three months ended June 30, 2024. The decrease in interest expense was driven by a decrease in the rate paid on interest-bearing liabilities which decreased interest expense $11.1 million partially offset by an increase in the average balance of interest-bearing liabilities which increased interest expense $7.0 million over the comparative time period.
Previous wording
Interest expense recognized on other borrowings decreased $1.6 million to $6 thousand for the three months ended March 31, 2025 due to the repayment of the Bank Term Funding Program which was paid off towards the end of 2024.
Current wording
Interest expense recognized on other borrowings decreased $1.6 million to $4 thousand for the three months ended June 30, 2025 due to the repayment of the Bank Term Funding Program which was paid off towards the end of 2024.
Previous wording
Net interest income increased $8.2 million to $108.4 million for the three months ended March 31, 2025 as compared to $100.2 million for the three months ended March 31, 2024. Net interest margin was 3.55% for the three months ended March 31, 2025 compared to 3.42% for the three months ended March 31, 2024. The increases in net interest income and net interest margin were primarily driven by decreases in interest expense paid on interest-bearing deposits and increases in interest income on investment securities and interest-bearing deposits with other financial institutions.
Current wording
Net interest income increased $17.2 million to $220.7 million for the six months ended June 30, 2025 as compared to $203.5 million for the six months ended June 30, 2024. Net interest margin was 3.61% for the six months ended June 30, 2025 compared to 3.49% for the six months ended June 30, 2024. The increases in net interest income and net interest margin were primarily driven by increases in interest income on loans HFI and investment securities and decreases in interest expense paid on interest-bearing deposits and other borrowings.
Previous wording
Interest income recognized on loans HFI decreased $2.8 million to $152.2 million for the three months ended March 31, 2025 from $155.0 million for the three months ended March 31, 2024. This decrease was attributable to a decline in the overall yield on loans HFI, partially offset by an increase in average balances. The yield on loans HFI decreased 23 basis points to 6.41% for the three months ended March 31, 2025 from 6.64% for the three months ended March 31, 2024.
Current wording
Interest income recognized on loans HFI increased $1.0 million to $310.1 million for the six months ended June 30, 2025 from $309.2 million for the six months ended June 30, 2024. This increase was attributable to an increase in average balances of loans HFI, partially offset by a decline in the overall yield on loans HFI due to lower interest rates. The yield on loans HFI decreased 24 basis points to 6.43% for the six months ended June 30, 2025 from 6.67% for the six months ended June 30, 2024.
Previous wording
Interest income on investment securities increased $4.8 million to $15.9 million for the three months ended March 31, 2025 from $11.1 million for the three months ended March 31, 2024. The increase was attributable to the increase in yield on these investments from the recent portfolio restructuring transactions. The yield on investment securities was 3.76% for the three months ended March 31, 2025, an increase of 105 basis points from 2.71% for the three months ended March 31, 2024.
Current wording
Interest income on investment securities increased $7.3 million to $31.9 million for the six months ended June 30, 2025 from $24.6 million for the six months ended June 30, 2024. The increase was attributable to the increase in yield on these investments from the portfolio restructuring transactions in prior years. The yield on investment securities was 3.77% for the six months ended June 30, 2025, an increase of 77 basis points from 3.00% for the six months ended June 30, 2024.
Previous wording
Interest expense was $72.1 million for the three months ended March 31, 2025, a decrease of $4.6 million as compared to $76.6 million for the three months ended March 31, 2024. The decrease was largely attributed to a decline in the rate paid on interest-bearing deposit accounts, partially offset by increases in average balances on interest-bearing deposit accounts.
Current wording
Interest expense was $142.7 million for the six months ended June 30, 2025, a decrease of $8.7 million as compared to $151.4 million for the six months ended June 30, 2024. The decrease was largely attributed to a decline in the rate paid on interest-bearing deposit accounts, partially offset by increases in average balances on interest-bearing deposit accounts.
Previous wording
Interest expense on interest-bearing deposit accounts totaled $70.2 million for the three months ended March 31, 2025, a $2.4 million decrease from the $72.6 million recognized for the three months ended March 31, 2024. The decline in interest expense on interest-bearing deposit accounts was led by declines in money market and customer time deposits which decreased $3.2 million and $1.4 million, respectively, for the three months ended March 31, 2025 as compared to the same period in the previous year. Offsetting these declines in interest expense within interest-bearing deposit accounts, we experienced an increase in interest expense from brokered time deposits, which increased $3.0 million for the three months ended March 31, 2025 to the same period in the previous year, due to an increase in the average balances outstanding as we took advantage of favorable relative terms available and issued brokered deposits towards the end of 2024. The average rate paid on interest-bearing deposits was 3.13% for the three months ended March 31, 2025 compared to 3.49% for the three months ended March 31, 2024.
Current wording
Interest expense on interest-bearing deposit accounts totaled $138.8 million for the six months ended June 30, 2025, a $5.3 million decrease from the $144.1 million recognized for the six months ended June 30, 2024. The decline in interest expense on interest-bearing deposit accounts was led by declines in money market and interest-bearing checking which decreased $5.1 million and $4.0 million, respectively, for the six months ended June 30, 2025 as compared to the same period in the previous year. Offsetting these declines in interest expense within interest-bearing deposit accounts, we experienced an increase in interest expense from brokered time deposits, which increased $6.5 million for the six months ended June 30, 2025 to the same period in the previous year, due to an increase in the average balances outstanding as we issued additional brokered deposits as part of our overall liquidity management strategy. The average rate paid on interest-bearing deposits was 3.12% for the six months ended June 30, 2025 compared to 3.51% for the six months ended June 30, 2024.
Previous wording
(2)Interest income includes the effects of taxable-equivalent adjustments using a U.S. federal income tax rate and, where applicable, state income tax to increase tax-exempt interest income to a tax-equivalent basis. The net tax-equivalent adjustment amounts included in income were $0.8 million and $0.7 million for three months ended March 31, 2025 and 2024, respectively.
Current wording
(2)Interest income includes the effects of taxable-equivalent adjustments using the combined federal and blended state statutory income tax rate to increase tax-exempt interest income to a tax-
Previous wording
(3)Includes average net unrealized losses on investment securities available for sale of $132.3 million and $194.1 million for the three months ended March 31, 2025 and 2024, respectively.
Current wording
(3)Includes average net unrealized losses on investment securities available for sale of $130.5 million and $196.1 million for the six months ended June 30, 2025 and 2024, respectively.
Previous wording
(4)Includes average of optional rights to repurchase government guaranteed GNMA mortgage loans previously sold that meet certain defined delinquency criteria of $30.7 million and $20.8 million for the three months ended March 31, 2025 and 2024, respectively.
Current wording
(4)Includes average of optional rights to repurchase government guaranteed GNMA mortgage loans previously sold that meet certain defined delinquency criteria of $27.9 million and $20.8 million for the six months ended June 30, 2025 and 2024, respectively.
Previous wording
The tables below present the components of the changes in net interest income for the three months ended March 31, 2025 and 2024. For each major category of interest-earning assets and interest-bearing liabilities, information is provided with respect to changes due to average volume and changes due to interest rates, with the changes in both volume and interest rates allocated to these two categories based on the proportionate absolute changes in each category.
Current wording
The tables below present the components of the changes in net interest income for the six months ended June 30, 2025 and 2024. For each major category of interest-earning assets and interest-bearing liabilities, information is provided with respect to changes due to average volume and changes due to interest rates, with the changes in both volume and interest rates allocated to these two categories based on the proportionate absolute changes in each category.
Previous wording
(2)Interest income includes the effects of the tax-equivalent adjustments to increase tax-exempt interest income to a tax-equivalent basis. The net taxable-equivalent adjustment amounts included was $0.8 million and $0.7 million for the three months ended March 31, 2025 and 2024, respectively.
Current wording
(2)Interest income includes the effects of the tax-equivalent adjustments to increase tax-exempt interest income to a tax-equivalent basis. The net taxable-equivalent adjustment amounts included was $1.6 million and $1.3 million for the six months ended June 30, 2025 and 2024, respectively.
Previous wording
The provision for credit losses charged to operating expense is an amount which, in the judgment of management, is necessary to maintain the allowance for credit losses at an appropriate level under the current expected credit loss model. The determination of the amount of the allowance is complex and involves a high degree of judgment and subjectivity. Refer to Note 1, “Basis of presentation and summary of significant accounting policies” in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 for a detailed discussion regarding ACL methodology.
Current wording
The provision for credit losses charged to operating expense is an amount which, in the judgment of management, is necessary to maintain the allowance for credit losses at an appropriate level under the current expected credit loss model. The determination of the amount of the allowance is complex and involves a high degree of judgment and subjectivity.
Previous wording
Our allowance for credit losses calculation as of March 31, 2025 resulted from management’s best estimate of losses over the life of loans and unfunded commitments in our portfolio in accordance with the CECL approach. Our calculation as of March 31, 2025 included economic forecasts for unemployment, gross domestic product, as well as other macroeconomic events which may impact our loan portfolio, such as supply chain concerns, global conflicts and possible tariffs. These factors may continue to lead to increased volatility in forecasted macroeconomic variables, a key input to our calculated level of allowance for credit losses.
Current wording
Our allowance for credit losses calculation as of June 30, 2025 resulted from management’s best estimate of losses over the life of loans and unfunded commitments in our portfolio in accordance with the CECL approach.
Previous wording
We recognized a provision for credit losses on loans HFI for both the three months ended March 31, 2025 and 2024 of $1.9 million. The current period provision on loans HFI is due to growth in loan balances in most categories and charge-off activity offset by notable decreases in multi-family and construction lending and slight improvement in economic forecasts. For the three months ended March 31, 2024, the provision on loans HFI was impacted by projected deterioration in the CRE portfolio which was adjusted qualitatively.
Current wording
We recognized a provision for credit losses on loans HFI for the six months ended June 30, 2025 and 2024 of $0.8 million and $5.8 million, respectively. The current period provision on loans HFI was driven by a $7.7 million growth in provision due to the changes in balances of the underlying loan portfolio coupled with changes in the forward-looking macroeconomic outlook offset by a $6.8 million reduction from the impact of the change in the CECL loss estimation methodology. For the six months ended June 30, 2024, the provision on loans HFI was impacted by projected deterioration in the CRE portfolio which was adjusted qualitatively.
Previous wording
We recorded a provision for credit losses on unfunded commitments of $0.4 million and a reversal of $1.1 million for the three months ended March 31, 2025 and 2024, respectively. For the three months ended March 31, 2025, the increase in provision for credit losses on unfunded commitments was driven by an increase in outstanding construction commitments partially offset by a broader decrease of outstanding commitment balances across other categories from year end balances. The increase in construction unfunded commitments was attributable to reduced utilization of existing construction lines which caused an increase in the available commitment in these relationships. The reversal of provision for credit losses on unfunded commitments for the three months ended March 31, 2024 is primarily due to management's concentrated effort to reduce unfunded loan commitments during the period including a $135.3 million decrease in our construction category as these projects moved to permanent financing for the three months ended March 31, 2024. As such, this resulted in a $1.0 million decrease in required ACL related to the unfunded commitments in our construction portfolio for the three months ended March 31, 2024.
Current wording
We recorded a provision for credit losses on unfunded commitments of $6.8 million and a reversal of $2.8 million for the six months ended June 30, 2025 and 2024, respectively. For the six months ended June 30, 2025, the increase in provision for credit losses on unfunded commitments was due largely to the $6.5 million impact of the change in the CECL loss estimation methodology and changes in forward-looking funding assumptions which most notably impacted our reserves for residential and commercial lines. The reversal of provision for credit losses on unfunded commitments for the six months ended June 30, 2024 was primarily due to management's concentrated effort to reduce unfunded loan commitments during the period including a $209.1 million decrease in our construction category as these projects moved to permanent financing during the period. As such, this resulted in a $2.7 million decrease in required ACL related to the unfunded commitments in our construction portfolio for the six months ended June 30, 2024.
Previous wording
Noninterest income amounted to $23.0 million for the three months ended March 31, 2025, an increase of $15.1 million, as compared to $8.0 million for the three months ended March 31, 2024. Excluding the recognition of the $16.2 million of net loss from investment securities sales recognized during the three months ended March 31, 2024, noninterest income declined $1.2 million.
Current wording
Noninterest income amounted to a $34.6 million loss for the three months ended June 30, 2025, a decrease of $60.2 million, as compared to income of $25.6 million for the three months ended June 30, 2024. The decrease in noninterest income was driven by the net loss from investment securities. Excluding the recognition of the $60.5 million of net loss from investment securities sales recognized during the three months ended June 30, 2025, noninterest income was $26.0 million for the three months ended June 30, 2025.
Previous wording
Mortgage banking income includes origination fees, gains and losses on the sale of mortgage loans, changes in fair value of mortgage loans and related derivatives, as well as mortgage servicing income, which includes the change in fair value of MSRs and related derivatives. Mortgage banking income was $12.4 million for the three months ended March 31, 2025, a decrease of $0.2 million compared to the prior period.
Current wording
Mortgage banking income includes origination fees, gains and losses on the sale of mortgage loans, changes in fair value of mortgage loans and related derivatives, as well as mortgage servicing income, which includes the change in fair value of MSRs and related derivatives. Mortgage banking income was $13.0 million for the three months ended June 30, 2025, an increase of $1.1 million compared to the prior period. The increase was driven by an increase in gains on sale of $2.3 million partially offset by negative fair value changes of $0.9 million from the prior period. This was impacted by the increase in interest rate lock volume of $71.5 million, or 18.6% during the current period over the same period in the prior year.
Previous wording
Investment services and trust income is comprised of wealth management fees and trust and insurance income. This caption increased $0.5 million during the three months ended March 31, 2025 to $3.7 million as compared to $3.2 million during the three months ended March 31, 2024. The increase is primarily attributable to fees earned from higher assets under management stemming from existing account growth.
Current wording
Investment services and trust income is comprised of wealth management fees and trust and insurance income. This caption increased $0.5 million during the three months ended June 30, 2025 to $3.9 million as compared to $3.4 million during the three months ended June 30, 2024.
Previous wording
Service charges on deposit accounts include overdraft fees, account analysis fees and other customer transaction-related service charges. Service charges on deposit accounts increased $0.3 million during the three months ended March 31, 2025 to $3.5 million as compared to $3.1 million during the three months ended March 31, 2024.
Current wording
Service charges on deposit accounts include overdraft fees, account analysis fees and other customer transaction-related service charges. Service charges on deposit accounts increased $0.2 million during the three months ended June 30, 2025 to $3.4 million as compared to $3.2 million during the three months ended June 30, 2024.
Previous wording
ATM and interchange fees represent income related to customers' utilization of their debit cards and interchange income. ATM and interchange fees were $2.7 million for the three months ended March 31, 2025, compared to $2.9 million for the three months ended March 31, 2024.
Current wording
ATM and interchange fees represent income related to customers' utilization of their debit cards and interchange income. ATM and interchange fees were $2.9 million for the three months ended June 30, 2025, compared to $2.8 million for the three months ended June 30, 2024.
Previous wording
The increase in total noninterest income was driven by the net loss from investment securities during the three months ended March 31, 2024, offset by a net loss on sales or write-downs of premises and equipment, other real estate owned and other assets.
Current wording
Net gain on sales or write-downs of premises and equipment, other real estate owned and other assets was $0.2 million for the three months ended June 30, 2025 compared to a net loss of $0.3 million for the three months ended June 30, 2024.
Previous wording
Other income is comprised of income recognized that does not typically fit into one of the other noninterest income categories and includes components such as BOLI income, swap fees, and equity investments income. Other income decreased $0.4 million to $1.3 million during the three months ended March 31, 2025 as compared to $1.7 million during the three months ended March 31, 2024. This decrease was primarily related to a $0.5 million loss associated with our proportionate share of loss of our equity method investment during the three months ended March 31, 2025.
Current wording
Other income is comprised of income recognized that does not typically fit into income categories and includes components such as BOLI income, swap fees, and equity investments income. Other income decreased $2.1 million to $2.5 million during the three months ended June 30, 2025 as compared to $4.6 million during the three months ended June 30, 2024. This decrease was primarily related to a $2.1 million increase in BOLI income resulting from proceeds from payment of death benefits during the three months ended June 30, 2024.
Previous wording
Net loss from investment securities was $16 thousand for the three months ended March 31, 2025 compared to a net loss of $16.2 million for the three months ended March 31, 2024. The net gain from investment securities during the three months ended March 31, 2025 stemmed from gains on called AFS debt securities while the net loss in the prior year primarily related to the sale of $207.9 million of AFS debt securities during that period.
Current wording
Net loss from investment securities was $60.5 million for the six months ended June 30, 2025 compared to a net loss of $16.2 million for the six months ended June 30, 2024. The net loss from investment securities during the six months ended June 30, 2025 was the result of management's election to sell $266.5 million of AFS debt securities compared to $207.9 million of AFS debt securities sold during the prior year period. Refer to the section “Other earning assets” for additional information on the sale of the AFS debt securities.
Previous wording
Net loss on sales or write-downs of premises and equipment, other real estate owned and other assets was $0.6 million for the three months ended March 31, 2025 compared to a net gain of $0.6 million for the three months ended March 31, 2024. The loss on sales or write-downs of premises and equipment, other real estate owned and other assets during the three months ended March 31, 2025 is primarily due to a $0.5 million decrease in gain on disposal of fixed assets and a loss of $0.5 million on sale of other real estate owned.
Current wording
Net loss on sales or write-downs of premises and equipment, other real estate owned and other assets was $0.4 million for the six months ended June 30, 2025 compared to a net gain of $0.3 million for the six months ended June 30, 2024.
Previous wording
Salaries, commissions and employee benefits expense is comprised of salaries and wages in addition to other employee benefit costs and represents the largest component of noninterest expense. For the three months ended March 31, 2025, salaries, commissions and employee benefits expense increased $3.7 million, or 8%, to $48.4 million as compared to $44.6 million for the three months ended March 31, 2024. This change was driven by an increase in the overall headcount of the organization, increases in the benefit costs, as well as higher performance-based compensation attributable to positive 2024 financial results.
Current wording
Salaries, commissions and employee benefits expense is comprised of salaries and wages in addition to other employee benefit costs and represents the largest component of noninterest expense. For the three months ended June 30, 2025, salaries and employee benefits expense increased $0.4 million, to $46.6 million as compared to $46.2 million for the three months ended June 30, 2024.
Previous wording
Occupancy and equipment expense includes occupancy, depreciation and equipment expense. Occupancy and equipment expense of $6.6 million was recognized for both the three months ended March 31, 2025 and 2024.
Current wording
Occupancy and equipment expense includes occupancy, depreciation and equipment expense. Occupancy and equipment expense of $6.7 million and $6.3 million was recognized for the three months ended June 30, 2025 and 2024.
Previous wording
Legal and professional fees represent fees incurred for the various support functions, which includes legal, consulting, outsourcing and other professional related fees. Legal and professional fees were $2.0 million and $1.9 million for the three months ended March 31, 2025 and 2024, respectively.
Current wording
Legal and professional fees represent fees incurred for the various support functions, which includes legal, consulting, outsourcing and other professional related fees. Legal and professional fees were $2.4 million and $2.0 million for the three months ended June 30, 2025 and 2024, respectively.
Showing the first 40 of 82 pairs. Open the source sections for the rest.
Rearranged current paragraphs (14)
Current report — wording carried from elsewhere
The components of mortgage banking income for the six months ended June 30, 2025 and 2024 were as follows:
Current report — wording carried from elsewhere
Interest expense on interest-bearing deposit accounts totaled $68.6 million for the three months ended June 30, 2025, a $2.9 million decrease from the $71.5 million recognized for the three months ended June 30, 2024. The decline in interest expense on interest-bearing deposit accounts was led by declines in money market and interest-bearing checking which decreased $1.9 million and $3.2 million, respectively, for the three months ended June 30, 2025 as compared to the same period in the previous year. Offsetting these declines in interest expense within interest-bearing deposit accounts, we experienced an increase in interest expense from brokered time deposits, which increased $3.5 million for the three months ended June 30, 2025 to the same period in the previous year, due to an increase in the average balances outstanding as we issued additional brokered deposits as part of our overall liquidity management strategy. Total cost of interest-bearing deposits was 3.10% for the three months ended June 30, 2025 compared to 3.52% for the three months ended June 30, 2024 as interest rates decrease and we continue to manage down higher cost deposits primarily in interest-bearing checking.
Current report — wording carried from elsewhere
The table below presents the components of the changes in net interest income for the three months ended June 30, 2025 and 2024. For each major category of interest-earning assets and interest-bearing liabilities, information is provided with respect to changes due to average volume and changes due to interest rates, with the changes in both volume and interest rates allocated to these two categories based on the proportionate absolute changes in each category.
Current report — wording carried from elsewhere
The components of our loan yield for the six months ended June 30, 2025 and 2024 were as follows:
Current report — wording carried from elsewhere
Interest expense recognized on other borrowings decreased $3.1 million to $10 thousand for the six months ended June 30, 2025 due to the repayment of the Bank Term Funding Program which was paid off towards the end of 2024.
Current report — wording carried from elsewhere
Average balance and interest yield/rate analysis
Current report — wording carried from elsewhere
The table below shows the average balances, income and expense and yield and rates of each of our interest-earning assets and interest-bearing liabilities on a tax equivalent basis, if applicable, for the periods indicated.
Current report — wording carried from elsewhere
equivalent basis. to increase tax-exempt interest income to a tax-equivalent basis. The net tax-equivalent adjustment amounts included in income were $1.6 million and $1.3 million for six months
Current report — wording carried from elsewhere
During the six months ended June 30, 2025 and 2024, it was determined that all AFS debt securities that experienced a decline in fair value below amortized cost basis were due to noncredit-related factors. Therefore, there was no provision for credit losses recognized on AFS debt securities during the six months ended June 30, 2025 and 2024.
Current report — wording carried from elsewhere
Investment services and trust income increased $1.0 million during the six months ended June 30, 2025 to $7.6 million as compared to $6.6 million during the six months ended June 30, 2024. The increase was primarily attributable to fees earned from higher assets under management stemming from existing account growth.
Current report — wording carried from elsewhere
Advertising includes expenses related to sponsorships, advertising, marketing, customer relations and business development and public relations. During the three months ended June 30, 2025, advertising expense increased $0.3 million to $2.2 million compared to $1.9 million during the three months ended June 30, 2024.
Current report — wording carried from elsewhere
Salaries, commissions and employee benefits expense increased $4.1 million, or 4.6%, to $95.0 million for the six months ended June 30, 2025 as compared to $90.8 million for the six months ended June 30, 2024. This change was driven by increases in the salaries and benefit costs, as well as higher performance-based compensation attributable to positive 2024 financial results that were paid in 2025.
Current report — wording carried from elsewhere
(1) Nonperforming loans are those on which the accrual of interest has stopped, as well as loans that are contractually 90 days past due on which interest continues to accrue.
Current report — wording carried from elsewhere
Nonperforming loans are those on which the accrual of interest has stopped, as well as loans that are contractually 90 days past due on which interest continues to accrue.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
Three months ended March 31, 2025 compared to the three months ended March 31, 2024
Previous report — wording carried elsewhere
The table below provides a summary of our non-owner occupied commercial real estate and construction loan portfolios by collateral property type.
Previous report — wording carried elsewhere
During the three months ended March 31, 2025, there were no AFS debt securities sold and we purchased $103.7 million of AFS debt securities. Maturities, prepayments and calls of AFS debt securities totaled $74.9 million for the three months ended March 31, 2025.