Enterprise Financial Services Corp Reports Fourth Quarter and Full Year 2025 Results

About this update from Enterprise Financial Services Corporation

[{"type":"text","content":" \n Fourth Quarter Results \n\n \n \n Net income of $54.8 million , or $1.45 per diluted common share, compared to $1.19 in the linked quarter and $1.28 in the prior year quarter \n\n \n \n Net interest margin (“NIM”) of 4.26%, quarterly increase of 3 basis points \n\n \n \n Net interest income of $168.2 million , quarterly increase of $9.9 million \n\n \n \n Total loans of $11.8 billion , quarterly increase of $217.2 million \n\n \n \n Total deposits of $14.6 billion , quarterly increase of $1.0 billion \n\n \n \n Return on average assets (“ROAA”) of 1.27%, compared to 1.11% in the linked quarter and 1.27% in the prior year quarter \n\n \n \n Return on average tangible common equity (“ROATCE”)1 of 14.02%, compared to 11.56% in the linked quarter and 13.63% in the prior year quarter \n\n \n \n Repurchased 67,000 shares and increased quarterly dividend $0.01 to $0.33 per common share for the first quarter 2026 \n\n \n \n Completed branch acquisition of 10 branches in Arizona and two branches in Kansas , adding $292.0 million in loans and $609.5 million in deposits \n\n \n \n 2025 Results \n\n \n \n Net income of $201.4 million , or $5.31 per diluted common share, compared to $4.83 in the prior year \n\n \n \n Net interest income of $626.7 million , an increase of $58.6 million compared to the prior year \n\n \n \n Total loans increased $580.0 million , or 5% \n\n \n \n Total deposits increased $1.5 billion , or 11% \n\n \n \n ROAA of 1.24%, compared to 1.25% in the prior year \n\n \n \n ROATCE1 of 13.34%, compared to 13.58% in the prior year \n\n \n \n Tangible common equity to tangible assets1 of 9.07% \n\n \n \n Tangible book value per common share1 of $41.37 , an increase of $4.10 , or 11%, from the prior year \n\n \n \n Repurchased 258,739 shares and increased common dividends $0.16 to $1.22 for 2025 \n\n \n \n ST. LOUIS --(BUSINESS WIRE)--\n Jim Lally , President and Chief Executive Officer of Enterprise Financial Services Corp (Nasdaq: EFSC) (the “Company” or “EFSC”), commented, “I am proud of how we ended 2025, which was another successful year for the Company. The completion of the branch acquisition in Arizona and Kansas during the quarter has enhanced our funding profile and strengthened our position in two important markets.”\n\n \nLally added, “We reported diluted earnings per share of $1.45 for the fourth quarter and $5.31 for the full year 2025. Our earnings resulted in a 1.27% ROAA and a 14.02% ROATCE1 for the fourth quarter. For the full year, we had a 1.24% ROAA and a 13.34% ROATCE. We leveraged our capital position in the year to execute on the branch acquisition, increase our common stock dividends 15% and repurchase $14.1 million of common stock, while still increasing tangible book value by 11% in 2025. This represents the 14th consecutive year that we have increased our tangible book value per share, with an 11% compound annual growth rate during that period. Similarly, we have increased our common stock dividend for 11 consecutive years with a 17% compound annual growth rate.”\n\n \n \n ____________________ \n \n \n \n1 ROATCE, tangible common equity to tangible assets, and tangible book value per common share are non-GAAP measures. Please refer to discussion and reconciliation of these measures in the accompanying financial tables.\n\n \n\n \n\n \n \n“I am also pleased that we made significant progress at the end of the year in resolving the large nonperforming credit relationship that has been previously disclosed. As we had expected, we were able to foreclose on the majority of the properties without taking a net loss on the transactions. As we enter a new year, I am confident that we will continue to improve our asset quality metrics and that the investments we have made in our associates and technology, combined with our high customer service levels and a strong balance sheet, will drive financial and operational success in 2026.”\n\n \n Full-Year Highlights \n\n \nFor 2025, net income was $201.4 million , or $5.31 per diluted share, compared to $185.3 million , or $4.83 per diluted share, in 2024. Pre-provision net revenue (“PPNR”)2 for 2025 was $274.7 million , compared to $255.2 million in 2024. The increase in PPNR2 in 2025 was primarily due to higher net interest income that benefited from an organic increase in average interest-earning asset balances and liquidity provided through the branch acquisition, and lower rates paid on interest-bearing liabilities. These increases were partially offset by an increase in noninterest expense due to the branch acquisition, merit increases, higher headcount and higher deposit costs from growth in the deposit verticals.\n\n \nNet interest income of $626.7 million increased $58.6 million over the prior year. NIM increased to 4.21% in 2025, from 4.16% in 2024, primarily due to higher average loan and securities balances, as well as higher yields on the securities portfolio. Average loans and securities increased $472.6 million and $753.8 million , respectively, compared to 2024. While the decline in market interest rates reduced the yield on loans 28 basis points, the yield on securities increased 51 basis points. Net interest income in 2025 also benefited from lower short-term interest rates that decreased deposit interest expense. Since September 2024 , the Federal Reserve has reduced the federal funds target rate 175 basis points. In response, the Company has proactively adjusted deposit pricing to partially mitigate the impact on income from the repricing of variable rate loans.\n\n \nNoninterest income was $113.1 million , an increase of $43.4 million from $69.7 million in 2024. Noninterest income in 2025 includes $32.1 million of anticipated insurance proceeds from a pending claim related to a recapture event during the third quarter 2025 with respect to a $24.1 million solar tax credit. There is an offsetting amount of $32.1 million in income tax expense related to the solar tax credit recapture.\n\n \nNoninterest expense was $429.8 million in 2025, a 12% increase from $385.0 million in 2024. The increase was primarily from higher deposit costs due to an increase in average deposit vertical balances, an increase in compensation due an expanded associate base and the onboarding of the associates from the branch acquisition, along with other expenses related to the branch acquisition. The increase was partially offset by a $4.9 million decline in core conversion expenses due to the completion of the core implementation in the fourth quarter 2024. The core efficiency ratio2 was 59.3% in 2025, compared to 58.4% in 2024.\n\n \nNonperforming assets were 0.95% of total assets at the end of 2025, compared to 0.30% at the end of 2024. Net charge-offs were 0.21% of average loans in 2025, compared to 0.16% in 2024. The allowance for credit losses was 1.19% of total loans at the end of 2025, compared to 1.23% at the end of 2024. Excluding guaranteed portions of loans, the allowance to loans ratio2 was 1.29% and 1.34% at the end of 2025 and 2024, respectively. The provision for credit losses was $26.3 million and $21.5 million in 2025 and 2024, respectively.\n\n \nThe Company maintained a strong liquidity position in 2025, with total deposits of $14.6 billion , a loan-to-deposit ratio of 80.8% and cash and investment securities of $4.5 billion as of December 31, 2025 . This compares to total deposits of $13.1 billion , a loan-to-deposit ratio of 85.3% and cash and investment securities of $3.6 billion at the end of 2024. Noninterest-bearing deposits comprise 33.4% of total deposits at December 31, 2025 , compared to 34.1% at the end of 2024. Excluding brokered certificates of deposits, core deposits as of December 31, 2025 totaled $13.9 billion , an increase of $1.2 billion from the prior year.\n\n \n \n ____________________ \n \n \n \n2 PPNR, core efficiency ratio, and allowance to loans ratio excluding guaranteed loans are non-GAAP measures. Please refer to discussion and reconciliation of these measures in the accompanying financial tables.\n\n \n\n \n\n \n \nTotal stockholders’ equity was $2.0 billion and $1.8 billion as of December 31, 2025 and December 31, 2024 , respectively. The increase was primarily due to net income of $201.4 million , offset by dividends and $14.1 million of common stock repurchases in 2025. The Company returned $45.1 million , or $1.22 per share, to common stockholders and $3.8 million , or $50.00 per share, to preferred stockholders in 2025.\n\n \n Fourth Quarter Highlights \n\n \n \n Earnings - Net income in the fourth quarter 2025 was $54.8 million , an increase of $9.6 million and $6.0 million compared to the linked and prior year quarters, respectively. Earnings per diluted share was $1.45 for the fourth quarter 2025, compared to $1.19 and $1.28 for the linked and prior year quarters, respectively. Adjusted diluted earnings per common share3 was $1.36 for the fourth quarter 2025, compared to $1.20 and $1.32 for the linked and prior year quarters, respectively.\n\n \n \n PPNR3 - PPNR of $74.8 million in the fourth quarter 2025 increased $9.2 million and $5.4 million from the linked and prior year quarters, respectively. The increases were primarily due to an increase in net interest income from higher average balances in the loan and securities portfolios, partially offset by an increase in noninterest expense.\n\n \n \n Net interest income and NIM - Net interest income of $168.2 million for the fourth quarter 2025 increased $9.9 million and $21.8 million from the linked and prior year quarters, respectively. NIM was 4.26% for the fourth quarter 2025, compared to 4.23% and 4.13% for the linked and prior year quarters, respectively. Compared to the linked quarter, net interest income increased due to higher average loan balances, higher average securities balances and yields, and lower short-term interest rates that decreased the rates paid on interest-bearing liabilities.\n\n \n \n Noninterest income - Noninterest income of $25.4 million for the fourth quarter 2025 decreased $23.2 million from the linked quarter and increased $4.8 million from the prior year quarter. The decrease from the linked quarter was primarily due to the anticipated insurance proceeds from the tax credit recapture in the linked quarter that did not reoccur. Excluding this item, noninterest income increased $8.9 million from the linked quarter primarily due to an increase in tax credit income as a result of higher volumes and a higher net gain on other real estate owned (“OREO”). Compared to the prior year quarter, the increase was primarily related to a higher net gain on OREO, partially offset by a decrease in tax credit income.\n\n \n \n Noninterest expense - Noninterest expense of $114.5 million for the fourth quarter 2025 increased $4.7 million and $15.0 million from the linked and prior year quarters, respectively. The increase from linked and prior year quarters was primarily driven by higher employee compensation and other expenses related to the branch acquisition. Compared to the prior year quarter, the increase was also attributed to higher deposit costs.\n\n \n \n Loans - Total loans increased $217.2 million from the linked quarter to $11.8 billion as of December 31, 2025 , including $292.0 million from the branch acquisition. Loan growth for the quarter was also impacted by the transfer of $68.1 million in book value loans to OREO. Average loans totaled $11.8 billion for the fourth quarter 2025, compared to $11.5 billion and $11.1 billion for the linked and prior year quarters, respectively.\n\n \n \n Asset quality - The allowance for credit losses to loans was 1.19% at December 31, 2025 , compared to 1.29% at September 30, 2025 and 1.23% at December 31, 2024 . The ratio of nonperforming assets to total assets was 0.95% at December 31, 2025 , compared to 0.83% and 0.30% at September 30, 2025 and December 31, 2024 , respectively. The provision for credit losses recorded in the fourth quarter 2025 was $9.2 million , compared to $8.4 million and $6.8 million for the linked and prior year quarters, respectively.\n\n \n \n Deposits - Total deposits increased $1.0 billion from the linked quarter to $14.6 billion as of December 31, 2025 , including $609.5 million from the branch acquisition. Excluding brokered certificates of deposits, deposits increased $1.1 billion from the linked quarter. Average deposits totaled $14.5 billion for the fourth quarter 2025, compared to $13.6 billion and $13.0 billion for the linked and prior year quarters, respectively. At December 31, 2025 , noninterest-bearing deposits totaled $4.9 billion , or 33.4% of total deposits, and the loan to deposit ratio was 80.8%.\n\n \n \n Capital - Total stockholders’ equity was $2.0 billion and tangible common equity to tangible assets4 was 9.07% at December 31, 2025 , compared to 9.60% at September 30, 2025 . Enterprise Bank & Trust remains “well-capitalized,” with a common equity tier 1 ratio of 11.9% and a total risk-based capital ratio of 13.0% as of December 31, 2025 . The Company’s common equity tier 1 ratio and total risk-based capital ratio was 11.6% and 13.9%, respectively, at December 31, 2025 .\n\nThe Company’s Board of Directors approved a quarterly dividend of $0.33 per common share, payable on March 31, 2026 to stockholders of record as of March 13, 2026 . The Board of Directors also declared a cash dividend of $12.50 per share of Series A Preferred Stock (or $0.3125 per depositary share) representing a 5% per annum rate for the period commencing (and including) December 15, 2025 to (but excluding) March 15, 2026 . The dividend will be payable on March 15, 2026 and will be paid on March 16, 2026 to stockholders of record on February 27, 2026 .\n\n \n \n \n ____________________ \n \n \n \n3 Adjusted diluted earnings per share and PPNR are non-GAAP measures. Please refer to discussion and reconciliation of these measures in the accompanying financial tables.\n\n \n\n \n\n \n \n 4 Tangible common equity to tangible assets is a non-GAAP measure. Please refer to discussion and reconciliation of this measure in the accompanying financial tables. \n \n \n Net Interest Income and NIM \n\n \nAverage Balance Sheets\n\n \nThe following table presents, for the periods indicated, certain information related to our average interest-earning assets and interest-bearing liabilities, as well as, the corresponding interest rates earned and paid, all on a tax-equivalent basis.\n\n \n \n \n \n\n \n\n \n\n \nQuarter ended\n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n December 31, 2025 \n\n \n\n \n\n \n \n\n \n\n \n\n \n September 30, 2025 \n\n \n\n \n\n \n \n\n \n\n \n\n \n December 31, 2024 \n\n \n\n \n\n \n \n \n($ in thousands)\n\n \n\n \n\n \nAverage\n\n \n\n \nBalance\n\n \n\n \n\n \n \n\n \n\n \n\n \nInterest\n\n \n\n \nIncome/\n\n \n\n \nExpense\n\n \n\n \n\n \n \n\n \n\n \n\n \nAverage\n\n \n\n \nYield/\n\n \n\n \nRate\n\n \n\n \n\n \n \n\n \n\n \n\n \nAverage\n\n \n\n \nBalance\n\n \n\n \n\n \n \n\n \n\n \n\n \nInterest\n\n \n\n \nIncome/\n\n \n\n \nExpense\n\n \n\n \n\n \n \n\n \n\n \n\n \nAverage\n\n \n\n \nYield/\n\n \n\n \nRate\n\n \n\n \n\n \n \n\n \n\n \n\n \nAverage\n\n \n\n \nBalance\n\n \n\n \n\n \n \n\n \n\n \n\n \nInterest\n\n \n\n \nIncome/\n\n \n\n \nExpense\n\n \n\n \n\n \n \n\n \n\n \n\n \nAverage\n\n \n\n \nYield/\n\n \n\n \nRate\n\n \n\n \n\n \n \n \n Assets \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nInterest-earning assets:\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nLoans1, 2\n\n \n\n \n\n \n \n\n \n\n \n\n \n11,794,459\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n193,587\n\n \n\n \n\n \n \n\n \n\n \n\n \n6.51\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n11,454,183\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n191,589\n\n \n\n \n\n \n \n\n \n\n \n\n \n6.64\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n11,100,112\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n187,761\n\n \n\n \n\n \n \n\n \n\n \n\n \n6.73\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nTaxable securities\n\n \n\n \n\n \n \n\n \n\n \n\n \n2,331,562\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n24,464\n\n \n\n \n\n \n \n\n \n\n \n\n \n4.16\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,100,748\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n21,705\n\n \n\n \n\n \n \n\n \n\n \n\n \n4.10\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,693,257\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n15,566\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.66\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nNon-taxable securities2\n\n \n\n \n\n \n \n\n \n\n \n\n \n1,292,403\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n12,263\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.76\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,252,557\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n11,503\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.64\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,054,806\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n8,713\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.29\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTotal securities\n\n \n\n \n\n \n \n\n \n\n \n\n \n3,623,965\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n36,727\n\n \n\n \n\n \n \n\n \n\n \n\n \n4.02\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,353,305\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n33,208\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.93\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,748,063\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n24,279\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.51\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nInterest-earning deposits\n\n \n\n \n\n \n \n\n \n\n \n\n \n552,843\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n5,436\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.90\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n328,392\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,638\n\n \n\n \n\n \n \n\n \n\n \n\n \n4.40\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n474,878\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n5,612\n\n \n\n \n\n \n \n\n \n\n \n\n \n4.70\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTotal interest-earning assets\n\n \n\n \n\n \n \n\n \n\n \n\n \n15,971,267\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n235,750\n\n \n\n \n\n \n \n\n \n\n \n\n \n5.86\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n15,135,880\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n228,435\n\n \n\n \n\n \n \n\n \n\n \n\n \n5.99\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n14,323,053\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n217,652\n\n \n\n \n\n \n \n\n \n\n \n\n \n6.05\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nNoninterest-earning assets\n\n \n\n \n\n \n \n\n \n\n \n\n \n1,128,162\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,042,208\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n986,524\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTotal assets\n\n \n\n \n\n \n$\n\n \n\n \n\n \n17,099,429\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n16,178,088\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n15,309,577\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n Liabilities and Stockholders’ Equity \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nInterest-bearing liabilities:\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nInterest-bearing demand accounts\n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,550,349\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n17,236\n\n \n\n \n\n \n \n\n \n\n \n\n \n1.93\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,298,022\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n17,488\n\n \n\n \n\n \n \n\n \n\n \n\n \n2.10\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,238,964\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n19,517\n\n \n\n \n\n \n \n\n \n\n \n\n \n2.40\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nMoney market accounts\n\n \n\n \n\n \n \n\n \n\n \n\n \n3,948,405\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n27,611\n\n \n\n \n\n \n \n\n \n\n \n\n \n2.77\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,706,891\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n28,734\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.08\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,588,326\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n30,875\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.42\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nSavings accounts\n\n \n\n \n\n \n \n\n \n\n \n\n \n540,764\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n168\n\n \n\n \n\n \n \n\n \n\n \n\n \n0.12\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n532,015\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n183\n\n \n\n \n\n \n \n\n \n\n \n\n \n0.14\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n547,176\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n278\n\n \n\n \n\n \n \n\n \n\n \n\n \n0.20\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nCertificates of deposit\n\n \n\n \n\n \n \n\n \n\n \n\n \n1,659,905\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n15,223\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.64\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,609,346\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n15,210\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.75\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,361,575\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n14,323\n\n \n\n \n\n \n \n\n \n\n \n\n \n4.18\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTotal interest-bearing deposits\n\n \n\n \n\n \n \n\n \n\n \n\n \n9,699,423\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n60,238\n\n \n\n \n\n \n \n\n \n\n \n\n \n2.46\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n9,146,274\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n61,615\n\n \n\n \n\n \n \n\n \n\n \n\n \n2.67\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n8,736,041\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n64,993\n\n \n\n \n\n \n \n\n \n\n \n\n \n2.96\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nSubordinated debentures and notes\n\n \n\n \n\n \n \n\n \n\n \n\n \n93,654\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,561\n\n \n\n \n\n \n \n\n \n\n \n\n \n6.61\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n136,895\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,683\n\n \n\n \n\n \n \n\n \n\n \n\n \n7.78\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n156,472\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,634\n\n \n\n \n\n \n \n\n \n\n \n\n \n6.70\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nFHLB advances\n\n \n\n \n\n \n \n\n \n\n \n\n \n11,620\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n127\n\n \n\n \n\n \n \n\n \n\n \n\n \n4.34\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n106,130\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,207\n\n \n\n \n\n \n \n\n \n\n \n\n \n4.51\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,370\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n42\n\n \n\n \n\n \n \n\n \n\n \n\n \n4.96\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nSecurities sold under agreements to repurchase\n\n \n\n \n\n \n \n\n \n\n \n\n \n170,058\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,065\n\n \n\n \n\n \n \n\n \n\n \n\n \n2.48\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n159,039\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,155\n\n \n\n \n\n \n \n\n \n\n \n\n \n2.88\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n156,082\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,245\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.17\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nOther borrowings\n\n \n\n \n\n \n \n\n \n\n \n\n \n97,196\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,108\n\n \n\n \n\n \n \n\n \n\n \n\n \n4.52\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n56,164\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n444\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.14\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n36,201\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n96\n\n \n\n \n\n \n \n\n \n\n \n\n \n1.05\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTotal interest-bearing liabilities\n\n \n\n \n\n \n \n\n \n\n \n\n \n10,071,951\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n64,099\n\n \n\n \n\n \n \n\n \n\n \n\n \n2.52\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n9,604,502\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n67,104\n\n \n\n \n\n \n \n\n \n\n \n\n \n2.77\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n9,088,166\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n69,010\n\n \n\n \n\n \n \n\n \n\n \n\n \n3.02\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nNoninterest-bearing liabilities:\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nDemand deposits\n\n \n\n \n\n \n \n\n \n\n \n\n \n4,837,958\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4,458,028\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4,222,115\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nOther liabilities\n\n \n\n \n\n \n \n\n \n\n \n\n \n167,048\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n151,432\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n154,787\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTotal liabilities\n\n \n\n \n\n \n \n\n \n\n \n\n \n15,076,957\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n14,213,962\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n13,465,068\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nStockholders' equity\n\n \n\n \n\n \n \n\n \n\n \n\n \n2,022,472\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,964,126\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,844,509\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTotal liabilities and stockholders' equity\n\n \n\n \n\n \n$\n\n \n\n \n\n \n17,099,429\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n16,178,088\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n15,309,577\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTotal net interest income\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n171,651\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n161,331\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n148,642\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nNet interest margin\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4.26\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4.23\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4.13\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n1 Average balances include nonaccrual loans. Interest income includes loan fees of $1.7 million , $1.9 million , and $2.4 million for the three months ended December 31, 2025 , September 30, 2025 , and December 31, 2024 , respectively.\n\n \n\n \n\n \n \n \n2 Non-taxable income is presented on a fully tax-equivalent basis using a tax rate of approximately 25%. The tax-equivalent adjustments were $3.5 million , $3.0 million , and $2.3 million for the three months ended December 31, 2025 , September 30, 2025 , and December 31, 2024 , respectively.\n\n \n\n \n\n \n \nNet interest income for the fourth quarter was $168.2 million , an increase of $9.9 million and $21.8 million from the linked and prior year quarters, respectively. Net interest income on a tax equivalent basis was $171.7 million , $161.3 million , and $148.6 million for the current, linked and prior year quarters, respectively. The increase from the linked and prior year quarters was primarily due to growth in interest-earning assets and lower rates paid on interest-bearing liabilities, specifically money market accounts and interest-bearing transaction accounts. In the linked quarter, the Company redeemed $63.3 million of subordinated debt at a floating rate of three-month Term SOFR plus a spread of 5.66% that was replaced by a $63.3 million single advance term loan. The term loan is payable in quarterly installments on March 31 , June 30 , September 30 and December 31 with a final installment due on the five year anniversary of the initial advance date. The interest rate on the term loan is one-month Term SOFR plus 2.50%.\n\n \nSince September 2024 , the Federal Reserve has reduced the federal funds target rate 175 basis points. In response, the Company has proactively adjusted deposit pricing to partially mitigate the impact on income from the repricing of variable rate loans.\n\n \nInterest income for the fourth quarter increased $6.9 million and $16.9 million as compared to the linked and prior year quarters, respectively. The increase from the linked quarter was primarily due to an increase of $340.3 million in average loan balances, primarily from the branch acquisition during the quarter, a $270.7 million increase in average securities balance as we deployed liquidity from the branch acquisition into yielding assets, and a nine basis point increase in the yield on securities due to new purchases and reinvestment of cash flows from the runoff of lower yielding investments. Compared to the prior year quarter, interest-earning assets increased $1.6 billion . Continued success in organic and acquired deposit generation has increased liquidity, which has been primarily deployed into the securities portfolio.\n\n \nThe average interest rate of new loan originations in the fourth quarter 2025 was 6.75%, a decrease of 23 basis points from the linked quarter. Investment purchases in the fourth quarter 2025 had a weighted average, tax equivalent yield of 4.61%.\n\n \nInterest expense decreased $3.0 million and $4.9 million in the fourth quarter 2025 as compared to the linked and prior year quarters primarily due to decreased interest paid on interest-bearing deposits. The average cost of interest-bearing deposits was 2.46%, a decrease of 21 and 50 basis points compared to the linked and prior year quarters, respectively. The total cost of deposits, including noninterest-bearing demand accounts, was 1.64% during the fourth quarter 2025, compared to 1.80% and 2.00% in the linked and prior year quarters, respectively.\n\n \nNIM, on a tax equivalent basis, was 4.26% in the fourth quarter 2025, an increase of three basis points and 13 basis points from the linked and prior year quarters, respectively. Included in net interest income and NIM is the net amortization of purchase accounting premiums and discounts from acquired loan portfolios. The net amount of amortization or accretion each quarter is impacted by repayment patterns on the individual loans with a premium or discount. The net effect of loan purchase accounting amortization did not effect NIM in the fourth quarter, while it reduced NIM two basis points in both the linked and prior year quarters. For the month of December 2025 , the loan portfolio yield was 6.53% and the cost of total deposits was 1.59%.\n\n \n Investments \n\n \n \n \n \n\n \n\n \n\n \nAt\n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n December 31, 2025 \n\n \n\n \n\n \n \n\n \n\n \n\n \n September 30, 2025 \n\n \n\n \n\n \n \n\n \n\n \n\n \n December 31, 2024 \n\n \n\n \n\n \n \n \n($ in thousands)\n\n \n\n \n\n \nCarrying\n\n \n\n \nValue\n\n \n\n \n\n \n \n\n \n\n \n\n \nNet Unrealized\n\n \n\n \nLoss\n\n \n\n \n\n \n \n\n \n\n \n\n \nCarrying\n\n \n\n \nValue\n\n \n\n \n\n \n \n\n \n\n \n\n \nNet Unrealized\n\n \n\n \nLoss\n\n \n\n \n\n \n \n\n \n\n \n\n \nCarrying\n\n \n\n \nValue\n\n \n\n \n\n \n \n\n \n\n \n\n \nNet Unrealized\n\n \n\n \nLoss\n\n \n\n \n\n \n \n \nAvailable-for-sale (AFS)\n\n \n\n \n\n \n$\n\n \n\n \n\n \n2,655,035\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n(83,258\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n2,351,493\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n(102,269\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n1,862,270\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n(163,212\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n \nHeld-to-maturity (HTM)\n\n \n\n \n\n \n \n\n \n\n \n\n \n1,074,957\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(35,288\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,081,847\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(49,656\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n928,935\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(70,321\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n \nTotal\n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,729,992\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n(118,546\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,433,340\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n(151,925\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n2,791,205\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n(233,533\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \nInvestment securities totaled $3.7 billion at December 31, 2025 , an increase of $296.7 million from the linked quarter. Tangible common equity to tangible assets adjusted for unrealized losses on held-to-maturity securities5 was 8.91% at December 31, 2025 , compared to 9.37% at September 30, 2025 .\n\n \n \n ____________________ \n \n \n \n5 Tangible common equity to tangible assets adjusted for unrealized losses on held-to-maturity securities is a non-GAAP measure. Please refer to discussion and reconciliation of this measure in the accompanying financial tables.\n\n \n\n \n\n \n \n Loans \n\n \nThe following table presents total loans for the most recent five quarters:\n\n \n \n \n \n\n \n\n \n\n \nAt\n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n December 31, 2025 \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n($ in thousands)\n\n \n\n \n\n \nLegacy\n\n \n\n \nEFSC***\n\n \n\n \n\n \n \n\n \n\n \n\n \n Branch \n\n \n\n \nAcquisition***\n\n \n\n \n\n \n \n\n \n\n \n\n \nConsolidated\n\n \n\n \n\n \n \n\n \n\n \n\n \n September 30 ,\n\n \n\n \n2025\n\n \n\n \n\n \n \n\n \n\n \n\n \n June 30 ,\n\n \n\n \n2025\n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31 ,\n\n \n\n \n2025\n\n \n\n \n\n \n \n\n \n\n \n\n \n December 31 ,\n\n \n\n \n2024\n\n \n\n \n\n \n \n \nC&I\n\n \n\n \n\n \n$\n\n \n\n \n\n \n2,521,959\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n84,513\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n2,606,472\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n2,320,868\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n2,316,609\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n2,198,802\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n2,139,032\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nCRE investor owned\n\n \n\n \n\n \n \n\n \n\n \n\n \n2,702,061\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n84,078\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,786,139\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,626,657\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,547,859\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,487,375\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,405,356\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nCRE owner occupied\n\n \n\n \n\n \n \n\n \n\n \n\n \n1,286,900\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n117,804\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,404,704\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,296,902\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,281,572\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,292,162\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,305,025\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nSBA loans*\n\n \n\n \n\n \n \n\n \n\n \n\n \n1,262,456\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,262,456\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,257,817\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,249,225\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,283,067\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,298,007\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nSponsor finance*\n\n \n\n \n\n \n \n\n \n\n \n\n \n694,905\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n694,905\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n774,142\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n771,280\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n784,017\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n782,722\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nLife insurance premium finance*\n\n \n\n \n\n \n \n\n \n\n \n\n \n1,187,128\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,187,128\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,151,700\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,155,623\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,149,119\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,114,299\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTax credits*\n\n \n\n \n\n \n \n\n \n\n \n\n \n802,818\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n802,818\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n780,767\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n708,401\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n677,434\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n760,229\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nResidential real estate\n\n \n\n \n\n \n \n\n \n\n \n\n \n357,616\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4,662\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n362,278\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n359,315\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n356,722\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n357,615\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n350,640\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nConstruction and land development\n\n \n\n \n\n \n \n\n \n\n \n\n \n633,651\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n152\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n633,803\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n784,218\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n773,122\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n800,985\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n794,240\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nConsumer**\n\n \n\n \n\n \n \n\n \n\n \n\n \n58,889\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n746\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n59,635\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n230,723\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n248,427\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n268,187\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n270,805\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTotal loans\n\n \n\n \n\n \n$\n\n \n\n \n\n \n11,508,383\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n291,955\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n11,800,338\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n11,583,109\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n11,408,840\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n11,298,763\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n11,220,355\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nQuarterly loan yield\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n6.51\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n6.64\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n6.64\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n6.57\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n6.73\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nLoans by rate type (to total loans):\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nFixed\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n40\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n41\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n40\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n39\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n40\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nVariable:\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n60\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n59\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n60\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n61\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n60\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nSOFR\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n30\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n29\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n29\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n29\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n28\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nPrime\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n23\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n23\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n24\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n24\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n24\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nOther\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n7\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n7\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n7\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n8\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n8\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nVariable interest rate loans to total loans, adjusted for interest rate hedges\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n56\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n55\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n56\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n56\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n55\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n \n*Specialty loan category\n\n \n\n \n\n \n \n \n**Certain loans were reclassified from Consumer and into other categories in the fourth quarter of 2025. Prior period amounts were not adjusted.\n\n \n\n \n\n \n \n \n***Amounts reported are as of December 31, 2025 and are separately shown attributable to the acquired branches’ loan portfolio acquired on October 10, 2025 , and the Company’s pre-branch acquisition loan portfolio.\n\n \n\n \n\n \n \nLoans totaled $11.8 billion at December 31, 2025 , increasing $217.2 million from the linked quarter. The increase was driven primarily by $292.0 million of loans acquired in the branch acquisition, partially offset by the $68.1 million book value of loans transferred to OREO in the quarter. Average line utilization was approximately 44% for the quarter ended December 31, 2025 , compared to 45% and 42% for the linked and prior year quarters, respectively.\n\n \n Asset Quality \n\n \nThe following table presents the categories of nonperforming assets and related ratios for the most recent five quarters:\n\n \n \n \n \n\n \n\n \n\n \nAt\n\n \n\n \n\n \n \n \n($ in thousands)\n\n \n\n \n\n \n December 31 ,\n2025\n\n \n\n \n\n \n \n\n \n\n \n\n \n September 30 ,\n2025\n\n \n\n \n\n \n \n\n \n\n \n\n \n June 30 ,\n2025\n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31 ,\n2025\n\n \n\n \n\n \n \n\n \n\n \n\n \n December 31 ,\n2024\n\n \n\n \n\n \n \n \nNonperforming loans*\n\n \n\n \n\n \n$\n\n \n\n \n\n \n82,809\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n127,878\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n105,807\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n109,882\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n42,687\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nOther1\n\n \n\n \n\n \n \n\n \n\n \n\n \n81,544\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n7,821\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n8,221\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,271\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,955\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nNonperforming assets*\n\n \n\n \n\n \n$\n\n \n\n \n\n \n164,353\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n135,699\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n114,028\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n113,153\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n46,642\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nNonperforming loans to total loans\n\n \n\n \n\n \n \n\n \n\n \n\n \n0.70\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.10\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.93\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.97\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.38\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nNonperforming assets to total assets\n\n \n\n \n\n \n \n\n \n\n \n\n \n0.95\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.83\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.71\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.72\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n0.30\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nAllowance for credit losses\n\n \n\n \n\n \n$\n\n \n\n \n\n \n140,022\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n148,854\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n145,133\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n142,944\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n137,950\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nAllowance for credit losses to loans\n\n \n\n \n\n \n \n\n \n\n \n\n \n1.19\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.29\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.27\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.27\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.23\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nAllowance for credit losses to nonperforming loans*\n\n \n\n \n\n \n \n\n \n\n \n\n \n169.1\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n116.4\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n137.2\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n130.1\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n323.2\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nQuarterly net charge-offs (recoveries)\n\n \n\n \n\n \n$\n\n \n\n \n\n \n20,674\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n4,057\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n630\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n(1,059\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n7,131\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n*Guaranteed balances excluded\n\n \n\n \n\n \n$\n\n \n\n \n\n \n28,903\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n33,475\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n26,536\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n22,607\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n21,974\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n1OREO and repossessed assets\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \nNonperforming assets increased $28.7 million during the fourth quarter 2025 and increased $117.7 million from the prior year quarter. The increase in nonperforming assets from the prior year quarter is primarily related to seven commercial real estate loans to special purpose entities (each an “SPE Borrower”) affiliated with two commercial banking relationships in Southern California that share some common ownership. Litigation resulting from a business dispute between the owners of the entities resulted in all of the SPE Borrowers filing bankruptcy in the first quarter of 2025, which was subsequently dismissed.\n\n \nIn the current quarter, the Company foreclosed on six of the seven properties serving as collateral for the loans. The six properties with a book value of $67.6 million were transferred to OREO at fair market value, less selling costs, resulting in a charge-off of $4.0 million and a gain on transfer of $6.2 million . While the charge-off and gain are reported in different income statement line items (provision for credit losses and noninterest income, respectively), the foreclosure of these properties resulted in a net gain of $2.2 million . It is anticipated that the seventh property with a book value of $4.0 million will be foreclosed on in the first quarter of 2026. The following table provides a summary of the foreclosed properties by collateral type:\n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n($ in thousands)\n\n \n\n \n\n \nFair market\n\n \n\n \nvalue, less\n\n \n\n \nselling costs\n\n \n\n \n\n \n \n\n \n\n \n\n \nCarrying\n\n \n\n \nvalue\n\n \n\n \n\n \n \n\n \n\n \n\n \nCharge-off\n\n \n\n \n\n \n \n\n \n\n \n\n \nGain\n\n \n\n \n\n \n \n \nCommercial real estate - investor owned:\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nMultifamily\n\n \n\n \n\n \n$\n\n \n\n \n\n \n13,240\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n17,209\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,969\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n \nMixed use\n\n \n\n \n\n \n \n\n \n\n \n\n \n49,760\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n44,341\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,066\n\n \n\n \n\n \n \n \nTotal commercial real estate - investor owned\n\n \n\n \n\n \n$\n\n \n\n \n\n \n63,000\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n61,550\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,969\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n2,066\n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nResidential real estate:\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nDuplex\n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,520\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n1,792\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n1,567\n\n \n\n \n\n \n \n \nCondominiums\n\n \n\n \n\n \n \n\n \n\n \n\n \n6,960\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4,211\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,547\n\n \n\n \n\n \n \n \nTotal residential real estate\n\n \n\n \n\n \n \n\n \n\n \n\n \n10,480\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n6,003\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4,114\n\n \n\n \n\n \n \n \nTotal\n\n \n\n \n\n \n$\n\n \n\n \n\n \n73,480\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n67,553\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,969\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n6,180\n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \nOther than these foreclosures, the change in nonperforming assets from the linked quarter was driven primarily by net charge-offs of $20.7 million and a relationship with two loans totaling $28.0 million that went on nonaccrual. These loans are well-secured with real estate collateral and the Company expects to collect the full value of the outstanding loans. Annualized net charge-offs totaled 70 basis points of average loans in the fourth quarter 2025, compared to 14 basis points in the linked quarter and 26 basis points in the prior year quarter. Net charge-offs totaled 21 basis points of average loans in 2025, compared to 16 basis points in 2024.\n\n \nThe provision for credit losses totaled $9.2 million in the fourth quarter 2025, compared to $8.4 million and $6.8 million in the linked and prior year quarters, respectively. The provision for credit losses in the fourth quarter 2025 was primarily related to net charge-offs. The Company adopted a new accounting standard in the current quarter that resulted in the $3.3 million credit mark on the acquired loan portfolio from the branch acquisition being added directly to the allowance for credit losses in purchase accounting and no provision for credit losses was recognized on the acquired loans.\n\n \n Deposits \n\n \nThe following table presents deposits broken out by type for the most recent five quarters:\n\n \n \n \n \n\n \n\n \n\n \nAt\n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n December 31, 2025 \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n($ in thousands)\n\n \n\n \n\n \nLegacy\n\n \n\n \nEFSCa\n\n \n\n \n\n \n \n\n \n\n \n\n \n Branch \n\n \n\n \nAcquisitiona\n\n \n\n \n\n \n \n\n \n\n \n\n \nConsolidated\n\n \n\n \n\n \n \n\n \n\n \n\n \n September 30 ,\n\n \n\n \n2025\n\n \n\n \n\n \n \n\n \n\n \n\n \n June 30 ,\n\n \n\n \n2025\n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31 ,\n\n \n\n \n2025\n\n \n\n \n\n \n \n\n \n\n \n\n \n December 31 ,\n\n \n\n \n2024\n\n \n\n \n\n \n \n \nNoninterest-bearing demand accounts\n\n \n\n \n\n \n$\n\n \n\n \n\n \n4,661,613\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n212,502\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n4,874,115\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n4,386,513\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n4,322,332\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n4,285,061\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n4,484,072\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nInterest-bearing demand accounts\n\n \n\n \n\n \n \n\n \n\n \n\n \n3,428,162\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n109,172\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,537,334\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,301,621\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,184,670\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,193,903\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,175,292\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nMoney market and savings accounts\n\n \n\n \n\n \n \n\n \n\n \n\n \n4,288,521\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n239,989\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4,528,510\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4,228,605\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4,209,032\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4,167,375\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4,117,524\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nBrokered certificates of deposit\n\n \n\n \n\n \n \n\n \n\n \n\n \n721,977\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n721,977\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n762,499\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n752,422\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n542,172\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n484,588\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nOther certificates of deposit\n\n \n\n \n\n \n \n\n \n\n \n\n \n899,573\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n47,833\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n947,406\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n888,674\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n848,903\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n845,719\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n885,016\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTotal deposit portfolio\n\n \n\n \n\n \n$\n\n \n\n \n\n \n13,999,846\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n609,496\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n14,609,342\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n13,567,912\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n13,317,359\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n13,034,230\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n13,146,492\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nNoninterest-bearing deposits to total deposits\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n33.4\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n32.3\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n32.5\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n32.9\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n34.1\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nTotal costs of deposits\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.64\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.80\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.82\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1.83\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2.00\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \na Amounts reported are as of December 31, 2025 and are separately shown attributable to the acquired branches’ deposit portfolio acquired on October 10, 2025 , and the Company’s pre-branch acquisition deposit portfolio.\n\n \n\n \n\n \n \nTotal deposits at December 31, 2025 were $14.6 billion , an increase of $1.0 billion and $1.5 billion from the linked and prior year quarters, respectively. Excluding brokered certificates of deposits, deposits increased $1.1 billion and $1.2 billion from the linked and prior year quarters, respectively. The increase was driven primarily by $609.5 million of deposits acquired in the branch acquisition and organic growth. Reciprocal deposits, which are placed through third party programs to provide FDIC insurance on larger deposit relationships, totaled $1.4 billion at both December 31, 2025 and September 30, 2025 .\n\n \n Noninterest Income \n\n \nThe following table presents a comparative summary of the major components of noninterest income for the periods indicated:\n\n \n \n \n \n\n \n\n \n\n \nQuarter ended\n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \nLinked quarter comparison\n\n \n\n \n\n \n \n\n \n\n \n\n \nPrior year comparison\n\n \n\n \n\n \n \n \n($ in thousands)\n\n \n\n \n\n \n December 31 ,\n\n \n\n \n2025\n\n \n\n \n\n \n \n\n \n\n \n\n \n September 30 ,\n\n \n\n \n2025\n\n \n\n \n\n \n \n\n \n\n \n\n \nIncrease\n\n \n\n \n(decrease)\n\n \n\n \n\n \n \n\n \n\n \n\n \n December 31 ,\n\n \n\n \n2024\n\n \n\n \n\n \n \n\n \n\n \n\n \nIncrease\n\n \n\n \n(decrease)\n\n \n\n \n\n \n \n \nDeposit service charges\n\n \n\n \n\n \n$\n\n \n\n \n\n \n5,081\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n4,935\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n146\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n4,730\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n351\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n7\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nWealth management revenue\n\n \n\n \n\n \n \n\n \n\n \n\n \n2,642\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,571\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n71\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,719\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(77\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n(3\n\n \n\n \n\n \n)%\n\n \n\n \n\n \n \n \nCard services revenue\n\n \n\n \n\n \n \n\n \n\n \n\n \n2,621\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,535\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n86\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,484\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n137\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n6\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nTax credit income (loss)\n\n \n\n \n\n \n \n\n \n\n \n\n \n3,180\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(300\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n3,480\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \nNM\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n6,018\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(2,838\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n(47\n\n \n\n \n\n \n)%\n\n \n\n \n\n \n \n \nAnticipated insurance recoveries\n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n32,112\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(32,112\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n(100\n\n \n\n \n\n \n)%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nNet gain (loss) on OREO\n\n \n\n \n\n \n \n\n \n\n \n\n \n6,169\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n7\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n6,162\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \nNM\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(68\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n6,237\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \nNM\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nOther income\n\n \n\n \n\n \n \n\n \n\n \n\n \n5,719\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n6,764\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(1,045\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n(15\n\n \n\n \n\n \n)%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4,748\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n971\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n20\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nTotal noninterest income\n\n \n\n \n\n \n$\n\n \n\n \n\n \n25,412\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n48,624\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n(23,212\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n(48\n\n \n\n \n\n \n)%\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n20,631\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n4,781\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n23\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nNM - Not meaningful\n\n \n\n \n\n \n \nTotal noninterest income for the fourth quarter 2025 was $25.4 million , a decrease of $23.2 million and an increase of $4.8 million from the linked and prior year quarters, respectively. The decrease from the linked quarter was primarily driven by the $32.1 million in accrued insurance proceeds that are anticipated to be received as a result of the recaptured tax credits recognized in the linked quarter that did not reoccur, partially offset by a $6.2 million net gain on OREO and an increase of $3.5 million in tax credit income. Tax credit income is typically highest in the fourth quarter of each year and will vary in other periods based on transaction volumes and fair value changes on credits carried at fair value. The increase from the prior year quarter was primarily due to a $6.2 million net gain on OREO, partially offset by a $2.8 million decrease in tax credit income.\n\n \nThe following table presents a comparative summary of the major components of other income for the periods indicated:\n\n \n \n \n \n\n \n\n \n\n \nQuarter ended\n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \nLinked quarter comparison\n\n \n\n \n\n \n \n\n \n\n \n\n \nPrior year comparison\n\n \n\n \n\n \n \n \n($ in thousands)\n\n \n\n \n\n \n December 31 ,\n\n \n\n \n2025\n\n \n\n \n\n \n \n\n \n\n \n\n \n September 30 ,\n\n \n\n \n2025\n\n \n\n \n\n \n \n\n \n\n \n\n \nIncrease\n\n \n\n \n(decrease)\n\n \n\n \n\n \n \n\n \n\n \n\n \n December 31 ,\n\n \n\n \n2024\n\n \n\n \n\n \n \n\n \n\n \n\n \nIncrease\n\n \n\n \n(decrease)\n\n \n\n \n\n \n \n \nBOLI\n\n \n\n \n\n \n$\n\n \n\n \n\n \n1,925\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n2,062\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n(137\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n(7\n\n \n\n \n\n \n)%\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n895\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n1,030\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n115\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nCommunity development investments\n\n \n\n \n\n \n \n\n \n\n \n\n \n922\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n309\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n613\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n198\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n297\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n625\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n210\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nGain on SBA loan sales\n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,140\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(1,140\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n(100\n\n \n\n \n\n \n)%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nPrivate equity fund distributions\n\n \n\n \n\n \n \n\n \n\n \n\n \n226\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n626\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(400\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n(64\n\n \n\n \n\n \n)%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n320\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(94\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n(29\n\n \n\n \n\n \n)%\n\n \n\n \n\n \n \n \nServicing fees\n\n \n\n \n\n \n \n\n \n\n \n\n \n517\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n587\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(70\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n(12\n\n \n\n \n\n \n)%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n528\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(11\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n(2\n\n \n\n \n\n \n)%\n\n \n\n \n\n \n \n \nSwap fees\n\n \n\n \n\n \n \n\n \n\n \n\n \n159\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n341\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(182\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n(53\n\n \n\n \n\n \n)%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n972\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(813\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n(84\n\n \n\n \n\n \n)%\n\n \n\n \n\n \n \n \nMiscellaneous income\n\n \n\n \n\n \n \n\n \n\n \n\n \n1,970\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,699\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n271\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n16\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,736\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n234\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n13\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nTotal other income\n\n \n\n \n\n \n$\n\n \n\n \n\n \n5,719\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n6,764\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n(1,045\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n(15\n\n \n\n \n\n \n)%\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n4,748\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n971\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n20\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \nOther income in the fourth quarter 2025 decreased $1.0 million and increased $1.0 million compared to the linked and prior year quarters, respectively. The decrease from the linked quarter was primarily driven by a gain on SBA loan sales in the linked quarter that did not reoccur in the current period. Compared to the prior year quarter, the increase in other income was related to an increase in BOLI income due to the purchase of additional life insurance policies and higher community development investment income, partially offset by lower swap fee income. Community development investment income is not a consistent source of income and fluctuates based on distributions from the underlying funds.\n\n \n Noninterest Expense \n\n \nThe following table presents a comparative summary of the major components of noninterest expense for the periods indicated:\n\n \n \n \n \n\n \n\n \n\n \nQuarter ended\n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \nLinked quarter comparison\n\n \n\n \n\n \n \n\n \n\n \n\n \nPrior year comparison\n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n December 31, 2025 \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n($ in thousands)\n\n \n\n \n\n \nLegacy\n\n \n\n \nEFSCa\n\n \n\n \n\n \n \n\n \n\n \n\n \n Branch \n\n \n\n \nAcquisitiona\n\n \n\n \n\n \n \n\n \n\n \n\n \nConsolidated\n\n \n\n \n\n \n \n\n \n\n \n\n \nSeptember\n\n \n\n \n30, 2025\n\n \n\n \n\n \n \n\n \n\n \n\n \nIncrease\n\n \n\n \n(decrease)\n\n \n\n \n\n \n \n\n \n\n \n\n \nDecember\n\n \n\n \n31, 2024\n\n \n\n \n\n \n \n\n \n\n \n\n \nIncrease\n\n \n\n \n(decrease)\n\n \n\n \n\n \n \n \nEmployee compensation and benefits\n\n \n\n \n\n \n$\n\n \n\n \n\n \n48,029\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n2,120\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n50,149\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n49,640\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n509\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n46,168\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n3,981\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n9\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nDeposit costs\n\n \n\n \n\n \n \n\n \n\n \n\n \n27,471\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n27,471\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n27,172\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n299\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n22,881\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4,590\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n20\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nOccupancy\n\n \n\n \n\n \n \n\n \n\n \n\n \n5,006\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n758\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n5,764\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4,895\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n869\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n18\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4,336\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,428\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n33\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nCore conversion expense\n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,893\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(1,893\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n(100\n\n \n\n \n\n \n)%\n\n \n\n \n\n \n \n \nAcquisition costs\n\n \n\n \n\n \n \n\n \n\n \n\n \n2,548\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,548\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n609\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,939\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n318\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n2,548\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \n FDIC special assessment\n\n \n\n \n\n \n \n\n \n\n \n\n \n(652\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(652\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(652\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n(652\n\n \n\n \n\n \n)\n\n \n\n \n\n \n \n\n \n\n \n\n \n—\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nOther expense\n\n \n\n \n\n \n \n\n \n\n \n\n \n27,888\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,364\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n29,252\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n27,474\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n1,778\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n6\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n24,244\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n5,008\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n21\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nTotal noninterest expense\n\n \n\n \n\n \n$\n\n \n\n \n\n \n110,290\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n4,242\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n114,532\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n109,790\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n4,742\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n4\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n99,522\n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n15,010\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n15\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \na Amounts reported are for the quarter ended December 31, 2025 and are separately shown attributable to the acquired branches’ noninterest expense, and the Company’s legacy branch noninterest expense.\n\n \n\n \n\n \n \nNoninterest expense was $114.5 million for the fourth quarter 2025, a $4.7 million and $15.0 million increase from the linked and prior year quarters, respectively. Acquisition costs related to the branch acquisition that was completed during the current quarter increased $1.9 million compared to the linked quarter. Employee compensation and benefits increased $4.0 million from the prior year quarter because of an increase in the associate base and merit increases throughout 2025. Compared to the prior year quarter, the increase was also related to an increase in acquisition costs of $2.5 million and an increase of $4.6 million in deposit costs due to higher average deposit vertical balances.\n\n \nFor the fourth quarter 2025, the Company’s core efficiency ratio6 was 58.3% for the quarter ended December 31, 2025 , compared to 61.0% for the linked quarter and 57.1% for the prior year quarter.\n\n \n \n ____________________ \n \n \n \n6 Core efficiency ratio and adjusted effective tax rate are non-GAAP measures. Please refer to discussion and reconciliation of these measures in the accompanying financial tables.\n\n \n\n \n\n \n \n Income Taxes \n\n \nThe Company’s effective tax rate was 21.5% in the fourth quarter 2025, compared to 49.0% and 19.5% in the linked and prior year quarters, respectively. Included in tax expense during the linked quarter was $24.1 million in transferrable tax credits that were recaptured as discussed above and approximately $8.0 million of incremental tax liability attributable to the anticipated insurance proceeds from the insured recaptured credits. Excluding the impact of the recaptured tax credits and related insurance proceeds, the adjusted effective tax rate6 for the third quarter 2025 was 20.0%. As part of the normal, ongoing review of state tax apportionment, the Company's state statutory tax rate was increased in the fourth quarter. Due to the increase, the Company’s federal and state statutory tax rate is a combined 25.1%, and after adjusting for permanent tax differences, the Company’s adjusted effective tax rate for 2025 is approximately 20.0%.\n\n \n Capital \n\n \nThe following table presents total equity and various EFSC capital ratios for the most recent five quarters:\n\n \n \n \n \n\n \n\n \n\n \nAt\n\n \n\n \n\n \n \n \n($ in thousands)\n\n \n\n \n\n \n December 31 ,\n\n \n\n \n2025*\n\n \n\n \n\n \n \n\n \n\n \n\n \n September 30 ,\n\n \n\n \n2025\n\n \n\n \n\n \n \n\n \n\n \n\n \n June 30 ,\n\n \n\n \n2025\n\n \n\n \n\n \n \n\n \n\n \n\n \n March 31 ,\n\n \n\n \n2025\n\n \n\n \n\n \n \n\n \n\n \n\n \n December 31 ,\n\n \n\n \n2024\n\n \n\n \n\n \n \n \nStockholders’ equity\n\n \n\n \n\n \n$\n\n \n\n \n\n \n2,039,386\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n1,982,332\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n1,922,899\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n1,868,073\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n$\n\n \n\n \n\n \n1,824,002\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \nTotal risk-based capital to risk-weighted assets\n\n \n\n \n\n \n \n\n \n\n \n\n \n13.9\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n14.4\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n14.7\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n14.7\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n14.6\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nTier 1 capital to risk-weighted assets\n\n \n\n \n\n \n \n\n \n\n \n\n \n12.8\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n13.3\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n13.2\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n13.1\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n13.1\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nCommon equity tier 1 capital to risk-weighted assets\n\n \n\n \n\n \n \n\n \n\n \n\n \n11.6\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n12.0\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n11.9\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n11.8\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n11.8\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nLeverage ratio\n\n \n\n \n\n \n \n\n \n\n \n\n \n10.5\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n11.1\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n11.1\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n11.0\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n11.1\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \nTangible common equity to tangible assets\n\n \n\n \n\n \n \n\n \n\n \n\n \n9.07\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n9.60\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n9.42\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n9.30\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n9.05\n\n \n\n \n\n \n%\n\n \n\n \n\n \n \n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n \n*Capital ratios for the current quarter are preliminary and subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review.\n\n \n\n \n\n \n \nTotal equity was $2.0 billion at December 31, 2025 , an increase of $57.1 million from the linked quarter. The Company’s tangible common book value per common share7 was $41.37 at December 31, 2025 , compared to $41.58 and $37.27 in the linked and prior year quarters, respectively.\n\n \nThe Company’s regulatory capital ratios continue to exceed the “well-capitalized” regulatory benchmark. Capital ratios for the current quarter are subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review.\n\n \n Use of Non-GAAP Financial Measures \n\n \nThe Company’s accounting and reporting policies conform to generally accepted accounting principles in the United States (“GAAP”) and the prevailing practices in the banking industry. However, the Company provides other financial measures, such as tangible common equity, PPNR, ROATCE, adjusted ROATCE, core efficiency ratio, adjusted effective tax rate, tangible common equity to tangible assets ratio, tangible common equity to tangible assets ratio adjusted for unrealized losses on held-to-maturity securities, tangible book value per common share, adjusted return on average common equity, allowance for credit losses to total loans excluding guaranteed loans, adjusted ROAA, and adjusted diluted earnings per share, in this release that are considered “non-GAAP financial measures.” Generally, a non-GAAP financial measure is a numerical measure of a company’s financial performance, financial position, or cash flows that exclude (or include) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP.\n\n \n \n ____________________ \n \n \n \n7 Tangible common book value per common share is a non-GAAP measure. Please refer to discussion and reconciliation of this measure in the accompanying financial tables.\n\n \n\n \n\n \n \nThe Company considers its tangible common equity, PPNR, ROATCE, adjusted ROATCE, core efficiency ratio, adjusted effective tax rate, tangible common equity to tangible assets ratio, tangible common equity to tangible assets ratio adjusted for unrealized losses on held-to-maturity securities, tangible book value per common share, adjusted return on average common equity, allowance for credit losses to total loans excluding guaranteed loans, adjusted ROAA, and adjusted diluted earnings per share, collectively “core performance measures,” presented in this earnings release and the included tables as important measures of financial performance, even though they are non-GAAP measures, as they provide supplemental information by which to evaluate the impact of certain non-comparable items, and the Company’s operating performance on an ongoing basis. Core performance measures exclude certain other income and expense items, such as the FDIC special assessment, core conversion expenses, acquisition costs, accrued insurance proceeds anticipated to be received as a result of recaptured tax credits, net gain or loss on OREO, and net gain or loss on sales of investment securities, that the Company believes to be not indicative of or useful to measure the Company’s operating performance on an ongoing basis. The attached tables contain a reconciliation of these core performance measures to the GAAP measures. The Company believes that tangible common equity to tangible assets provides useful information to investors about the Company’s capital strength even though it is considered to be a non-GAAP financial measure and is not part of the regulatory capital requirements to which the Company is subject.\n\n \nThe Company believes these non-GAAP measures and ratios, when taken together with the corresponding GAAP measures and ratios, provide meaningful supplemental information regarding the Company’s performance and capital strength. The Company’s management uses, and believes that investors benefit from referring to, these non-GAAP measures and ratios in assessing the Company’s operating results and related trends and when forecasting future periods. However, these non-GAAP measures and ratios should be considered in addition to, and not as a substitute for or preferable to, ratios prepared in accordance with GAAP. In the attached tables, the Company has provided a reconciliation of, where applicable, the most comparable GAAP financial measures and ratios to the non-GAAP financial measures and ratios, or a reconciliation of the non-GAAP calculation of the financial measures for the periods indicated.\n\n \n Conference Call and Webcast Information \n\n \nThe Company will host a conference call and webcast at 10:00 a.m. Central Time on Tuesday, January 27, 2026 . During the call, management will review the fourth quarter 2025 results and related matters. This press release as well as a related slide presentation will be accessible on the Company’s website at www.enterprisebank.com under “Investor Relations” prior to the scheduled broadcast of the conference call. The call can be accessed via this same website page, or via telephone at 1-800-715-9871. After connecting, you may say the name of the conference or enter the Conference ID 30174. We encourage participants to pre-register for the conference call using the following link: https://bit.ly/EFSC4Q2025EarningsCallRegistration . Callers who pre-register will be given a conference passcode and unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time. A recorded replay of the conference call will be available on the website after the call’s completion. The replay will be available for at least two weeks following the conference call.\n\n \n About Enterprise Financial Services Corp \n\n \n Enterprise Financial Services Corp (Nasdaq: EFSC), with approximately $17.3 billion in assets, is a financial holding company headquartered in Clayton, Missouri . Enterprise Bank & Trust , a Missouri state-chartered trust company with banking powers and a wholly-owned subsidiary of EFSC, operates branch offices in Arizona , California , Florida , Kansas , Missouri , Nevada , and New Mexico , and SBA loan and deposit production offices throughout the country. Enterprise Bank & Trust offers a range of business and personal banking services and wealth management services. Enterprise Trust , a division of Enterprise Bank & Trust , provides financial planning, estate planning, investment management and trust services to businesses, individuals, institutions, retirement plans and non-profit organizations. Additional information is available at www.enterprisebank.com .\n\n \nEnterprise Financial Services Corp’s common stock is traded on the Nasdaq Stock Market under the symbol “EFSC.” Please visit our website at www.enterprisebank.com to see our regularly posted material information.\n\n \n Forward-looking Statements \n\n \nReaders should note that, in addition to the historical information contained herein, this press release contains “forward-looking statements” within the meaning of, and intended to be covered by, the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company including, without limitation, plans, strategies and goals, and statements about the Company’s expectations regarding revenue and asset growth, financial performance and profitability, loan and deposit growth, liquidity, yields and returns, loan diversification and credit management, stockholder value creation and the impact of acquisitions.\n\n \nForward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “pro forma”, “pipeline” and other similar words and expressions. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made. Because forward-looking statements are subject to assumptions and uncertainties, actual results or future events could differ, possibly materially, from those anticipated in the forward-looking statements and future results could differ materially from historical performance. They are neither statements of historical fact nor guarantees or assurances of future performance. While there is no assurance that any list of risks and uncertainties or risk factors is complete, important factors that could cause actual results to differ materially from those in the forward-looking statements include the following, without limitation: the Company’s ability to efficiently integrate acquisitions into its operations, retain the customers of these businesses and grow the acquired operations, the Company’s ability to collect insurance proceeds from claims made related to tax recapture events, credit risk, changes in the appraised valuation of real estate securing impaired loans, outcomes of litigation and other contingencies, exposure to general and local economic and market conditions, high unemployment rates, higher inflation and its impacts (including U.S. federal government measures to address higher inflation), impacts of trade and tariff policies, U.S. fiscal debt, budget and tax matters (including the effect of a prolonged U.S. federal government shutdown), and any slowdown in global economic growth, risks associated with rapid ...

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