FB Financial Corp

Previous wording

The following is a discussion of our financial condition as of June 30, 2026 and December 31, 2025, and our results of operations for the three and six months ended June 30, 2026 and 2025, 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, 2025, that was filed with the SEC on February 26, 2026, 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 September 30, 2026 and December 31, 2025, and our results of operations for the three and nine months ended September 30, 2026 and 2025, 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, 2025, that was filed with the SEC on February 26, 2026, 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. Forward-looking statements represent the Company’s current expectations, plans or forecasts of its or its business segments’ future results, which may include, among other measures, revenue, liquidity, net interest income, other income, provision for credit losses, expenses, operating leverage, effective tax rate, efficiency ratio, capital measures, deposits and assets, as well as strategy, future business and economic conditions more generally, and other future matters. 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) the Company’s ability to identify potential candidates for, consummate, and achieve synergies from…

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. Forward-looking statements represent the Company’s current expectations, plans or forecasts of its or its business segments’ future results, which may include, among other measures, revenue, liquidity, net interest income, other income, provision for credit losses, expenses, operating leverage, effective tax rate, efficiency ratio, capital measures, deposits and assets, as well as strategy, future business and economic conditions more generally, and other future matters. 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 U.S. 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, funding costs, and mortgage operations, (3) increased competition for loans and deposits and the Company’s ability to sustain loan and deposit growth, (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, the impact of interest rates on the value of the Company’s investment securities portfolio, or the adequacy of the Company’s allowance for credit losses, (5) any deteri…

Excerpt shortened here; the source contains the full paragraph.

Previous wording

(2)Includes $32.6 million,$21.0 million, and $28.1 million of optional rights to repurchase delinquent GNMA loans as of June 30, 2026, June 30, 2025 and December 31, 2025, respectively.

Current wording

(2)Includes $29.1 million,$21.7 million, and $28.1 million of optional rights to repurchase delinquent GNMA loans as of September 30, 2026, September 30, 2025 and December 31, 2025, respectively.

Previous wording

In accordance with the SEC’s rules, we classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the United States in our consolidated statements of income, balance sheets or statements of cash flows. The non-GAAP financial measures that we discuss in this Report should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which we calculate the non-GAAP financial measures that we discuss in our selected historical consolidated financial data may differ from that of other companies reporting measures with similar names. You should understand how such other banking organizations calculate their financial measures similar or with names similar to the non-GAAP financial measures we have discussed in our selected historical consolidated financial data when comparing such non-GAAP financial measures. The following reconciliation tables provide a more detailed analysis of these, and reconciliation for, each of non-GAAP financial measures.

Current wording

In accordance with the SEC’s rules, we classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the United States in our consolidated statements of income, balance sheets or statements of cash flows. Management believes these non-GAAP financial measures provide useful supplemental information to investors regarding our financial condition and results of operations; however, they have limitations as analytical tools. The non-GAAP financial measures that we discuss in this Report should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which we calculate the non-GAAP financial measures that we discuss in this Report may differ from that of other companies reporting measures with similar names which may limit their comparability. You should understand how such other banking organizations calculate their financial measures similar or with names similar to the non-GAAP financial measures we have discussed in this Report when comparing such non-GAAP financial measures. The following reconciliation tables provide a more detailed analysis of, and reconciliation for, each of the non-GAAP financial measures to the most directly comparable GAAP measures.

Previous wording

Tangible book value per common share and tangible common equity to tangible assets are non-GAAP measures that exclude the impact of goodwill and other intangibles used by management to evaluate capital adequacy. Because intangible assets, such as goodwill and other intangibles, vary extensively from company to company, we believe that the presentation of this information allows investors to more easily compare our capital position to other companies. The most directly comparable financial measure calculated in accordance with GAAP is book value per common share and our total common shareholders’ equity to total assets.

Current wording

Tangible book value per common share and tangible common equity to tangible assets are non-GAAP measures that exclude the impact of goodwill and other intangibles used by management to evaluate capital adequacy. Because intangible assets, such as goodwill and other intangibles, vary extensively from company to company, we believe that the presentation of this information allows investors to more easily compare our capital position to other companies. The most directly comparable financial measures calculated in accordance with GAAP are book value per common share and total common shareholders’ equity to total assets.

Previous wording

The following table presents, as of the dates set forth below, tangible common equity compared with total common shareholders’ equity, tangible book value per common share compared with our book value per common share and common equity to tangible assets compared to total common shareholders’ equity to total assets:

Current wording

The following table presents, as of the dates set forth below, tangible common equity compared with total common shareholders’ equity, tangible book value per common share compared with our book value per common share and tangible common equity to tangible assets compared to total common shareholders’ equity to total assets:

Previous wording

The following table presents, as of the dates set forth below, reconciliations of total average tangible common equity to average shareholders’ equity and return on average tangible common equity to return on average shareholders’ equity:

Current wording

The following table presents, for the periods set forth below, reconciliations of total average tangible common equity to average shareholders’ equity and return on average tangible common equity to return on average shareholders’ equity:

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 Georgia. As of June 30, 2026, our footprint included 90 full-service branches serving markets across Tennessee, including Nashville, Chattanooga, Knoxville, Memphis, and Jackson in addition to Bowling Green, Kentucky, Columbus and Newnan, Georgia and Birmingham, Anniston, Huntsville, and Auburn, 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 September 30, 2026, our footprint included 90 full-service branches serving markets across Tennessee, including Nashville, Chattanooga, Knoxville, Memphis, and Jackson in addition to Bowling Green, Kentucky, Columbus and Newnan, Georgia and Birmingham, Anniston, Huntsville, and Auburn, Alabama. Subsequent to quarter-end, we opened our first full-service branch in Asheville, North Carolina in October 2026. 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

We recognized net income of $58.6 million during the three months ended June 30, 2026 compared to $2.9 million for the three months ended June 30, 2025. Diluted earnings per common share were $1.13 and $0.06 for the three months ended June 30, 2026 and 2025, respectively. Our net income represented a ROAA of 1.44% and 0.09% for the three months ended June 30, 2026 and 2025, respectively, and a ROAE of 11.8% and 0.74% for the same periods. Our ROATCE for the three months ended June 30, 2026 and 2025 were 14.6% and 0.87%, 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 $60.2 million during the three months ended September 30, 2026 compared to $23.4 million for the three months ended September 30, 2025. Diluted earnings per common share were $1.20 and $0.43 for the three months ended September 30, 2026 and 2025, respectively. Our net income represented a ROAA of 1.43% and 0.58% for the three months ended September 30, 2026 and 2025, respectively, and a ROAE of 12.2% and 4.69% for the same periods. Our ROATCE for the three months ended September 30, 2026 and 2025 was 15.2% and 5.82%, 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

Our net income increased during the six months ended June 30, 2026 to $116.2 million from $42.3 million for the six months ended June 30, 2025. Diluted earnings per common share was $2.24 and $0.91 for the six months ended June 30, 2026 and 2025, respectively. Our net income represented a ROAA of 1.44% and 0.65% for the six months ended June 30, 2026 and 2025, respectively, and a ROAE of 11.9% and 5.38% for the same periods. Our ratio of ROATCE for the six months ended June 30, 2026 and 2025 was 14.7% and 6.38%, 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

Our net income increased during the nine months ended September 30, 2026 to $176.4 million from $65.7 million for the nine months ended September 30, 2025. Diluted earnings per common share were $3.43 and $1.34 for the nine months ended September 30, 2026 and 2025, respectively. Our net income represented a ROAA of 1.43% and 0.62% for the nine months ended September 30, 2026 and 2025, respectively, and a ROAE of 12.0% and 5.11% for the same periods. Our ROATCE for the nine months ended September 30, 2026 and 2025 was 14.8% and 6.17%, 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

During the six months ended June 30, 2026, our net interest income increased to $294.9 million from $219.1 million for the six months ended June 30, 2025. Our net interest margin, on a tax-equivalent basis, increased to 3.94% for the six months ended June 30, 2026 as compared to 3.61% for the six months ended June 30, 2025. The increase in net interest income and net interest margin, on a tax-equivalent basis, was driven by a $93.0 million increase in interest income, partially offset by a $17.1 million increase in interest expense.

Current wording

During the nine months ended September 30, 2026, our net interest income increased to $444.9 million from $366.3 million for the nine months ended September 30, 2025. Our net interest margin, on a tax-equivalent basis, increased to 3.90% for the nine months ended September 30, 2026 as compared to 3.74% for the nine months ended September 30, 2025. The increase in net interest income and net interest margin, on a tax-equivalent basis, was driven by a $92.2 million increase in interest income, primarily from higher average loans HFI resulting from the Southern States merger and continued loan growth, partially offset by a $13.6 million increase in interest expense. The increase in net interest margin reflected a 31 basis point decline in the cost of interest-bearing liabilities, which outpaced the 5 basis point decline in the yield on interest-earning assets.

Previous wording

Noninterest income for the six months ended June 30, 2026 increased by $63.7 million to $52.2 million, compared to a loss of $11.5 million for the prior year period. The increase in noninterest income was 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. Refer to the section “Other earning assets” for additional information on the sale of the AFS debt securities.

Current wording

Noninterest income for the nine months ended September 30, 2026 increased by $61.6 million to $76.7 million, compared to $15.1 million for the prior year period. The increase in noninterest income was primarily attributable to the $60.5 million net loss on investment securities recognized from the sale of $266.9 million of AFS debt securities during the nine months ended September 30, 2025. Refer to the section “Other earning assets” for additional information on the sale of the AFS debt securities.

Previous wording

Noninterest expense increased to $186.6 million for the six months ended June 30, 2026, compared with $160.8 million for the six months ended June 30, 2025. Salaries, commissions and benefits increased $15.7 million reflecting the addition of Southern States personnel and higher performance-based compensation, partially offset by recognition of deferred salaries related to loan originations during the period. Other expense increased $7.8 million, primarily due to higher software license and maintenance fees, franchise tax expense, and broad-based increases across several expense categories. The merger also contributed $2.8 million of core deposit intangible amortization and increased occupancy expense, while merger and integration costs declined $1.7 million from the prior year period.

Current wording

Noninterest expense increased to $282.7 million for the nine months ended September 30, 2026, compared with $270.7 million for the nine months ended September 30, 2025. Salaries, commissions and employee benefits increased $12.5 million reflecting the addition of Southern States personnel and higher bonus and commissions, partially offset by higher deferred salary costs related to loan originations during the period and lower performance-based equity compensation. Other expense increased $12.0 million, primarily due to higher franchise tax expense, software license and maintenance fees, regulatory costs, card transaction fees, contributions and dues, subservicer fees and broad-based increases across several expense categories. The increase was partially offset by a $17.7 million decrease in merger and integration costs recognized related to the Southern States merger.

Previous wording

The Banking segment contributed $71.6 million of income before taxes for the current period as compared to a loss before taxes of $6.7 million for the previous period. Net interest income totaled $145.4 million during the three months ended June 30, 2026 compared to $108.9 million during the previous period. Provisions for credit losses on loans HFI and unfunded loan commitments resulted in $9.1 million of provision expense during the current period as compared to $0.6 million during the previous period. The increase was primarily attributable to the growth in loan balances and an increase on individually evaluated reserves during the current period, as well as the benefit recognized from the change in the CECL loss estimation methodology in the previous period. The Banking segment recorded noninterest income of $14.4 million in the current period as compared to a loss of $47.7 million in the previous period. 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 recognized during the previous period. Noninterest expense increased to $79.1 million for the current period compared to $67.3 million for the previous period primarily due to increases in salaries, commissions and benefits, amortization of core deposit intangibles and occupancy, with the majority of these increases associated with the Southern States merger. Additionally, software license and maintenance fees, franchise tax expense, and other operating expenses increased during the period.

Current wording

The Banking segment contributed $77.7 million of income before taxes for the current period as compared to $26.9 million for the previous period. Net interest income totaled $146.1 million during the three months ended September 30, 2026 compared to $144.9 million during the previous period. Provisions for credit losses on loans HFI and unfunded loan commitments resulted in $1.0 million of provision expense during the current period as compared to $34.1 million during the previous period. The decrease was primarily due to the initial provision for credit losses on acquired loans and unfunded commitments from the Southern States merger of $28.4 million recognized in the previous period. The Banking segment recorded noninterest income of $15.0 million in the current period as compared to $13.1 million in the previous period. Noninterest expense decreased to $82.5 million for the current period compared to $97.0 million for the previous period primarily due to the decrease in merger and integration costs associated with the Southern States merger and salaries, commissions and employee benefits, partially offset by an increase in other expense, including franchise tax expense and modest increases across several expense categories, such as regulatory costs and software license and maintenance fees.

Previous wording

Activity in our Mortgage segment resulted in income before income taxes of $2.2 million for the current period, as compared to a loss before income taxes of $1.5 million in the prior period. Net interest income was $6.4 million for the current period and $4.4 million for the prior period. Provisions for credit losses on loans HFI and unfunded loan commitments resulted in provision expense of $2.0 million during the current period compared to $4.9 million of provision expense during the prior period. As noted above, the decrease in the provision primarily reflects the impact of the change in the CECL loss estimation methodology, which notably impacted the Company's reserves on 100% financed 1-to-4 mortgages during the previous period and a change in forecasts associated with home prices. Mortgage banking income decreased $2.0 million to $23.4 million during the current period compared to $25.5 million in the prior period.

Current wording

Activity in our Mortgage segment resulted in a loss before income taxes of $0.7 million for the current period, as compared to income before income taxes of $2.7 million in the prior period. Net interest income was $3.8 million for the current period and $2.4 million for the prior period. Provisions for credit losses on loans HFI and unfunded loan commitments resulted in provision expense of $0.4 million during the current period compared to $0.3 million during the prior period. Mortgage banking income decreased $4.1 million to $9.4 million during the current period compared to $13.5 million in the prior period.

Previous wording

The Banking segment contributed $145.1 million of income before taxes for the current period as compared to $40.6 million for the previous period. Net interest income totaled $288.6 million during the six months ended June 30, 2026 compared to $214.7 million during the previous period. Provisions for credit losses on loans HFI and unfunded loan commitments resulted in $11.1 million of provision expense during the current period as compared to $2.8 million during the previous period. The increase in provision expense reflects higher loan balances and increased reserves on individually evaluated loans during the current period, while the previous period benefited from the change in the CECL loss estimation methodology. The Banking segment recorded noninterest income of $28.4 million in the current period as compared to a loss of $37.1 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 that was recognized during the previous period. Noninterest expense increased to $160.7 million for the current period compared to $134.2 million for the previous period, primarily due to increases in salaries, commissions and benefits, amortization of core deposit intangibles and occupancy, reflecting in part the impact of the Southern States merger. The increase also reflected higher software license and maintenance fees, franchise tax expense, and modest increases across other expense categories.

Current wording

The Banking segment contributed $222.8 million of income before taxes for the current period as compared to $67.5 million for the previous period. Net interest income totaled $434.7 million during the nine months ended September 30, 2026 compared to $359.5 million during the previous period. Provisions for credit losses on loans HFI and unfunded loan commitments resulted in $12.1 million of provision expense during the current period as compared to $36.8 million during the previous period. Similar to above, the decrease was primarily due to the initial provision for credit losses on acquired loans and unfunded commitments from the Southern States merger of $28.4 million recognized in the previous period. The Banking segment recorded noninterest income of $43.4 million in the current period as compared to a loss of $24.0 million in the previous period. The increase was mainly attributable to a $60.5 million net loss on investment securities recognized in the previous period from the sale of $266.9 million of AFS debt securities. Noninterest expense increased to $243.2 million for the current period compared to $231.2 million for the previous period, primarily due to increases in salaries, commissions and employee benefits, amortization of core deposit intangibles and occupancy, reflecting in part the impact of the Southern States merger. The increase also reflected higher franchise tax expense, software license and maintenance fees and broad-based increases across several expense categories, including regulatory costs, card transaction fees, contributions and dues, and subservicer fees, partially offset by a $17.7 million decrease in merger and integration costs.

Previous wording

Activity in our Mortgage segment resulted in income before income taxes of $1.6 million for the current period, as compared to a loss before taxes of $3.0 million in the prior period. Net interest income was $3.5 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 $1.0 million during the current period compared to $4.8 million during the prior period. The decrease in the provision primarily reflects the impact of the change in the CECL loss estimation methodology, which notably impacted the Company’s reserves on 100% financed 1-to-4 mortgages during the previous period and a change in forecasts associated with home prices. Mortgage banking income decreased $1.9 million to $11.2 million during the current period compared to $13.0 million in the prior period.

Current wording

Activity in our Mortgage segment resulted in income before income taxes of $1.6 million for the current period, as compared to $1.2 million in the prior period. Net interest income was $10.2 million for the current period and $6.8 million for the prior period. Provisions for credit losses on loans HFI and unfunded loan commitments resulted in provision expense of $2.5 million during the current period compared to $5.2 million of provision expense during the prior period. The decrease in the provision primarily reflects the impact of the change in the CECL loss estimation methodology, which notably impacted the Company's reserves on 100% financed 1-to-4 mortgages during the previous period. Mortgage banking income decreased $6.1 million to $32.8 million during the current period compared to $38.9 million in the prior period.

Previous wording

The components of mortgage banking income for the six months ended June 30, 2026 and 2025 were as follows:

Current wording

The components of mortgage banking income for the nine months ended September 30, 2026 and 2025 were as follows:

Previous wording

Throughout the following discussion of our operating results, we present our net interest income, net interest margin and core efficiency ratio on a fully tax-equivalent basis. The fully tax-equivalent basis adjusts for the tax-favored status of net interest income from certain qualifying loans and investments.

Current wording

Throughout the following discussion of our operating results, we present our net interest income, net interest margin and adjusted efficiency ratio on a fully tax-equivalent basis. The fully tax-equivalent basis adjusts for the tax-favored status of net interest income from certain qualifying loans and investments.

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 and six months ended June 30, 2026 and 2025.

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 nine months ended September 30, 2026 and 2025.

Previous wording

Interest income was $230.3 million for the three months ended June 30, 2026, compared to $182.9 million for the three months ended June 30, 2025, an increase of $47.3 million, which was primarily driven by an increase in average interest earning assets, most notably loans HFI, reflecting the Southern States merger and loan growth during the period.

Current wording

Interest income was $237.0 million for the three months ended September 30, 2026, compared to $237.7 million for the three months ended September 30, 2025, a decrease of $0.8 million, which was primarily driven by lower yields on interest-earning assets reflecting lower interest rates compared to the prior period, partially offset by growth in average interest-earning assets, most notably loans HFI.

Previous wording

Interest income on loans HFI increased $45.8 million to $203.8 million for the three months ended June 30, 2026 from $158.0 million for the three months ended June 30, 2025 due to increased average balances and higher yields stemming from the Southern States merger and continued loan growth, including accretion on those purchased loans. The yield on loans HFI was 6.48% for the three months ended June 30, 2026, up 4 basis points from the three months ended June 30, 2025.

Current wording

Interest income on loans HFI increased $2.6 million to $210.0 million for the three months ended September 30, 2026 from $207.4 million for the three months ended September 30, 2025 due to growth in average loan balances. The yield on loans HFI was 6.42% for the three months ended September 30, 2026, down 33 basis points from the three months ended September 30, 2025, reflecting a 24 basis point decline in the contractual rate and a 10 basis point decline in accretion on purchased loans.

Previous wording

(1) Includes tax equivalent adjustment using combined marginal tax rate of 26.06%.

Current wording

(1) Includes tax-equivalent adjustment using combined federal and blended state statutory tax rate of 26.06%.

Previous wording

Accretion on purchased loans contributed 13 basis points to the NIM for the three months ended June 30, 2026 as a result of the Southern States merger. There was no impact of accretion on purchased loans to the NIM for the three months ended June 30, 2025.

Current wording

Accretion on purchased loans contributed 11 and 19 basis points to the NIM for the three months ended September 30, 2026 and 2025, respectively, as a result of the Southern States merger.

Previous wording

Interest expense was $80.5 million for the three months ended June 30, 2026, an increase of $9.8 million as compared to the three months ended June 30, 2025, which was driven by a combination of higher average balance of interest-bearing liabilities, somewhat offset by a decrease in the rate paid on interest-bearing liabilities. These changes were primarily attributable to the merger with Southern States and also impacted by management's deposit strategy.

Current wording

Interest expense was $86.2 million for the three months ended September 30, 2026, a decrease of $3.5 million as compared to the three months ended September 30, 2025, driven by a decrease in the rate paid on interest-bearing liabilities to 2.91% from 3.21%, partially offset by an increase in the average balance of interest-bearing liabilities. These changes were primarily attributable to lower interest rates compared to the prior year and management's continued focus on managing funding costs.

Previous wording

Net interest income increased $75.9 million to $296.6 million for the six months ended June 30, 2026 as compared to $220.7 million for the six months ended June 30, 2025. Net interest margin was 3.94% for the six months ended June 30, 2026 compared to 3.61% for the six months ended June 30, 2025. Net interest income was driven by higher average balances of loans HFI resulting from the Southern States merger and continued loan growth, while the increase in net interest margin reflected higher loan yields and a decline in the average cost of interest-bearing deposits.

Current wording

Net interest income increased $78.6 million to $447.4 million for the nine months ended September 30, 2026 as compared to $368.8 million for the nine months ended September 30, 2025. Net interest margin was 3.90% for the nine months ended September 30, 2026 compared to 3.74% for the nine months ended September 30, 2025. Net interest income reflected growth in average earning assets, most notably loans HFI, resulting from the Southern States merger and continued loan growth, while the increase in net interest margin was primarily driven by lower funding costs, including a decline in the average cost of interest-bearing deposits, partially offset by lower yields on earning assets.

Previous wording

Interest income was $456.4 million for the six months ended June 30, 2026, compared to $363.4 million for the six months ended June 30, 2025, an increase of $93.0 million. The increase in interest income was primarily attributable to loans HFI, which increased $92.8 million to $402.9 million for the six months ended June 30, 2026 from $310.1 million for the six months ended June 30, 2025. The increase was driven by higher average balances of loans HFI, reflecting the Southern States merger and continued loan growth, as well as a modest increase in yield. The yield on loans HFI increased 6 basis points to 6.49% for the six months ended June 30, 2026 from 6.43% for the six months ended June 30, 2025, largely due to accretion on purchased loans.

Current wording

Interest income was $693.4 million for the nine months ended September 30, 2026, compared to $601.1 million for the nine months ended September 30, 2025, an increase of $92.2 million. The increase in interest income was primarily attributable to loans HFI, which increased $95.3 million to $612.9 million for the nine months ended September 30, 2026 from $517.6 million for the nine months ended September 30, 2025. The increase was driven by higher average balances of loans HFI, reflecting the Southern States merger and continued loan growth. The yield on loans HFI decreased 8 basis points to 6.47% for the nine months ended September 30, 2026 from 6.55% for the nine months ended September 30, 2025, as lower market interest rates were partially offset by accretion income on purchased loans.

Previous wording

The components of our loan yield for the three and six months ended June 30, 2026 and 2025 were as follows:

Current wording

The components of our loan yield for the nine months ended September 30, 2026 and 2025 were as follows:

Previous wording

Accretion on purchased loans contributed 15 basis points to the NIM for the six months ended June 30, 2026 as a result of the recent merger. There was no impact of accretion on purchased loans to the NIM for the six months ended June 30, 2025.

Current wording

Accretion on purchased loans contributed 14 and 7 basis points to the NIM for the nine months ended September 30, 2026 and 2025, respectively, as a result of the Southern States merger.

Previous wording

Interest expense on interest-bearing deposit accounts totaled $156.6 million for the six months ended June 30, 2026, an increase of $17.8 million from the prior year, largely due to increases in average balances across most deposit categories, particularly money market deposits and customer time deposits, reflecting growth associated with the merger. Lower rates paid across these deposit categories partially offset the impact of higher average balances. The average rate paid on interest-bearing deposits was 2.80% for the six months ended June 30, 2026 compared to 3.12% for the six months ended June 30, 2025.

Current wording

Interest expense on interest-bearing deposit accounts totaled $241.1 million for the nine months ended September 30, 2026, an increase of $15.7 million from the prior year, largely due to higher average balances, particularly in money market deposits and customer time deposits, partially offset by lower rates paid on those deposits. The average rate paid on interest-bearing deposits was 2.83% for the nine months ended September 30, 2026 compared to 3.13% for the nine months ended September 30, 2025.

Previous wording

equivalent basis. The net tax-equivalent adjustment amounts included in income were $1.6 million for both the six months ended June 30, 2026 and 2025.

Current wording

equivalent basis. The net tax-equivalent adjustment amounts included in income were $2.5 million for both the nine months ended September 30, 2026 and 2025.

Previous wording

(3)Includes average net unrealized losses on investment securities available for sale of $47.2 million and $130.5 million for the six months ended June 30, 2026 and 2025, respectively.

Current wording

(3)Includes average net unrealized losses on investment securities available for sale of $51.4 million and $108.4 million for the nine months ended September 30, 2026 and 2025, 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 $32.6 million and $27.9 million for the six months ended June 30, 2026 and 2025, 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 $32.0 million and $25.8 million for the nine months ended September 30, 2026 and 2025, respectively.

Previous wording

(5)The NIM is calculated by dividing annualized net interest income, on a tax-equivalent basis, by average total earning assets.

Current wording

(5)The NIM is calculated by dividing annualized net interest income, on a tax-equivalent basis, by average total interest-earning assets.

Previous wording

The tables below present the components of the changes in net interest income for the six months ended June 30, 2026 and 2025. 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 table below presents the components of the changes in net interest income for the nine months ended September 30, 2026 and 2025. 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 $1.6 million for both the six months ended June 30, 2026 and 2025.

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 were $2.5 million for both the nine months ended September 30, 2026 and 2025.

Previous wording

Beginning with June 30, 2025, we began to 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 utilized the weighted average remaining maturity loss rate technique. See “Note 1, “Basis of presentation and summary of significant accounting policies” in our Annual Report on Form 10-K for the year ended December 31, 2025, for further discussion on the change in estimate.

Current wording

Beginning with June 30, 2025, we began to utilize the discounted cash flow estimation technique, adjusted for current conditions and reasonable and supportable forecasts, to estimate the expected credit losses of our loan segments, except consumer and other loans, which utilize the weighted average remaining maturity loss rate technique. See Note 1, “Basis of presentation and summary of significant accounting policies” in our Annual Report on Form 10-K for the year ended December 31, 2025, for further discussion on the change in estimate.

Previous wording

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 wording

The discounted cash flow was calibrated using a regression analysis that relates one or more economic variables to our historical default rates and those of 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 that of 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.

Previous wording

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 for credit losses on unfunded commitments of $0.5 million and $6.4 million for the three months ended June 30, 2026 and 2025, respectively. The lower provision expense for the three months ended June 30, 2026 was primarily due to the impact of a $6.5 million expense recorded in the prior year period associated with a change in the CECL loss estimation methodology.

Current wording

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 for credit losses on unfunded commitments of $0.3 million and $4.5 million for the three months ended September 30, 2026 and 2025, respectively. The prior year period provision was due largely to the initial provision on acquired unfunded commitments from the Southern States merger of $3.2 million.

Previous wording

During the three months ended June 30, 2026 and 2025 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 three months ended June 30, 2026 and 2025.

Current wording

During the three months ended September 30, 2026 and 2025, we 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 three months ended September 30, 2026 and 2025.