Business First Bank(BFST) - 2025 Q2 - Quarterly Results

Executive Summary & Q2 2025 Financial Highlights Business First Bancshares, Inc. reported strong Q2 2025 financial performance with increased net income and EPS, alongside strategic advancements and declared dividends Q2 2025 Financial Performance Overview Business First Bancshares, Inc. reported increased net income and diluted EPS for Q2 2025 compared to the linked quarter, both on a GAAP and non-GAAP basis, indicating consistent earnings Net Income Available to Common Shareholders (QoQ) | Metric | Q2 2025 | Linked Quarter (Q1 2025) | | :--------------------------------- | :------ | :----------------------- | | Net Income (GAAP) | $20.8 million | $19.2 million | | Diluted EPS (GAAP) | $0.70 | $0.65 | | Core Net Income (Non-GAAP) | $19.5 million | $19.3 million | | Core Diluted EPS (Non-GAAP) | $0.66 | $0.65 | Strategic and Operational Achievements The CEO highlighted a quarter of strategic advancements, including a new partnership, successful core conversion, and branch repositioning, which are expected to drive future growth while maintaining healthy balance sheet metrics - The quarter's operational activities, including a new partnership announcement, successful core conversion, and legacy branch repositioning, position the company for continued growth and development[2] - The team maintained consistent earnings and healthy balance sheet growth, including tangible book value and capital levels, amidst productive operational activities[2] - Future plans include converting Oakwood franchise systems late in Q3 and strengthening the Dallas market presence as a fully integrated team[2] Quarterly Dividends Declared The board of directors declared both preferred and common stock dividends for Q2 2025, payable on August 31, 2025 Dividends Declared | Dividend Type | Amount | Payment Date | Record Date | | :------------ | :----- | :----------- | :---------- | | Preferred | $18.75 per share (1.875% quarterly) | August 31, 2025 | August 15, 2025 | | Common | $0.14 per share | August 31, 2025 | August 15, 2025 | Quarterly Highlights The company achieved sustained core performance, optimized its branch network, maintained stable net interest margin, and announced a significant acquisition Core Performance & Capital Growth The company demonstrated sustained core performance with improved return on average assets and significant capital growth, driven by strong earnings Performance Ratios (QoQ) | Metric | Q2 2025 | Linked Quarter (Q1 2025) | | :------------------------------------ | :------ | :----------------------- | | Return to common shareholders on average assets (annualized) | 1.07% | 1.00% | | Core return on average assets (non-GAAP, annualized) | 1.01% | 1.01% | | Common equity to total assets | 9.77% | 9.69% | | Tangible common equity to tangible assets | 8.19% | 8.06% | | Tangible book value per common share (non-GAAP) | $28.61 | N/A (increased 77 bps) | - Tangible book value per common share increased by 77 basis points, representing a 3.70% or 14.82% annualized increase compared to the linked quarter[4] Branch Optimization & Core Conversion Business First optimized its branch network by selling a Kaplan, LA branch, which resulted in a capital injection and reduced operating costs. The company also successfully completed a core processing system conversion to FIS for improved efficiency - Sold a banking branch in Kaplan, LA, resulting in a net capital injection of $3.4 million[4] - The Kaplan branch sale included $50.7 million of deposits for an 8.0% purchase premium and is estimated to reduce annual operating costs by $750,000[4] - Successfully converted core processing for loans, deposits, and the general ledger to Fidelity Information Systems ("FIS") to improve capabilities and efficiencies[4] Net Interest Margin (NIM) Stability Net interest income increased slightly, and net interest margin remained stable at 3.68% despite minor negative impacts from core conversion and deposit replacement costs Net Interest Income & Margin (QoQ) | Metric | Q2 2025 | Linked Quarter (Q1 2025) | | :---------------------- | :------ | :----------------------- | | Net Interest Income | $67.0 million | $66.0 million | | Net Interest Margin (NIM) | 3.68% | 3.68% | | Net Interest Spread | 2.88% | 2.91% | | Non-GAAP NIM | 3.64% | 3.64% | | Non-GAAP Net Interest Spread | 2.84% | 2.86% | - Net interest margin was impacted by excess funding during core conversion (~3 basis points) and incremental funding cost associated with replacing the Kaplan deposit portfolio (~2 basis points)[4] Progressive Bank Acquisition Business First executed a definitive agreement to acquire Progressive Bancorp, Inc. and its subsidiary, Progressive Bank, which will add significant assets, deposits, and equity to the company - On July 7, 2025, Business First executed a definitive agreement to acquire Progressive Bancorp, Inc and its wholly-owned bank subsidiary, Progressive Bank[5] Progressive Bank's Financials (as of March 31, 2025) | Metric | Amount | | :----------- | :----------- | | Total Assets | $752 million | | Deposits | $673 million | | Equity | $65 million | Statement of Financial Condition The balance sheet reflects growth in loans and shareholders' equity, an increase in borrowings, and shifts in deposit composition, while credit quality metrics showed an upward trend Loans Loans held for investment increased by $66.7 million, primarily driven by growth in commercial and commercial real estate portfolios, while the construction portfolio declined Loans Held for Investment (QoQ) | Portfolio | Q2 2025 | Linked Quarter (Q1 2025) | Change | | :-------------------- | :------ | :----------------------- | :----- | | Total Loans (HFI) | $6,047.65 million | $5,980.92 million | +$66.7 million (+1.12%) | | Commercial | $1,960.97 million | $1,862.18 million | +$98.8 million | | Commercial Real Estate | $2,533.76 million | $2,472.12 million | +$61.6 million | | Construction | $600.29 million | $633.70 million | -$33.4 million (-5.27%) | - Texas-based loans represented approximately 40% of the overall loan portfolio as of June 30, 2025[7] Credit Quality Credit quality metrics showed an upward migration, with increases in nonperforming loans and assets ratios compared to the linked quarter, largely due to an additional reserve on a nonaccrual loan Credit Quality Metrics (QoQ) | Metric | Q2 2025 | Linked Quarter (Q1 2025) | Change | | :------------------------------------ | :------ | :----------------------- | :----- | | Nonperforming loans to loans HFI | 0.97% | 0.69% | +28 bps | | Nonperforming assets to total assets | 0.76% | 0.55% | +21 bps | | Nonaccrual Loans | $56.38 million | $35.92 million | +$20.46 million | | Allowance for credit losses to loans HFI | 1.02% | 1.01% | +1 bp | - The $56.4 million nonaccrual balance at June 30, 2025, included approximately $22.5 million in commercial real estate, $20.8 million in commercial, and $7.5 million in residential real estate portfolios[8] Securities The securities portfolio increased slightly, primarily due to positive fair value adjustments, and represented 11.83% of total assets - The securities portfolio increased $5.9 million, or 0.64%, from the linked quarter, impacted by $6.4 million in positive fair value adjustments[9] - The securities portfolio, based on estimated fair value, represented 11.83% of total assets as of June 30, 2025[9] Deposits Total deposits decreased, but excluding the Kaplan sale, deposits showed a slight increase. There was a notable shift from interest-bearing to noninterest-bearing deposits, influenced by institutional withdrawals and retail CD promotions Deposits (QoQ) | Metric | Q2 2025 | Linked Quarter (Q1 2025) | Change | | :-------------------------- | :------ | :----------------------- | :----- | | Total Deposits | $6,419.65 million | $6,458.18 million | -$38.5 million (-0.60%) | | Noninterest-bearing deposits | $1,410.71 million | $1,308.31 million | +$102.4 million (+7.83%) | | Interest-bearing deposits | $5,008.94 million | $5,149.87 million | -$140.9 million (-10.77%) | - Excluding the $50.7 million in deposits transferred in the Kaplan sale, deposits increased $12.1 million or 0.19%[10] - The money market portfolio was affected by approximately $62.8 million of withdrawals from financial institutional accounts, which were replaced with more efficient brokered certificates of deposits (CDs)[11] Borrowings Borrowings significantly increased, primarily due to higher short-term Federal Home Loan Bank advances, used to manage liquidity during core conversion and short-term deposit fluctuations - Borrowings increased $179.0 million or 41.25% from the linked quarter, primarily due to an increase in short-term Federal Home Loan Bank advances[12] - Additional liquidity was utilized during the quarter as Business First's main correspondent banking relationship was changed during the core conversion process, as well as for short-term deposit fluctuations[12] Shareholders' Equity Shareholders' equity increased, driven by strong earnings and positive fair value adjustments in the securities portfolio, leading to an increase in book value per common share Shareholders' Equity (QoQ) | Metric | Q2 2025 | Linked Quarter (Q1 2025) | Change | | :------------------------------------ | :------ | :----------------------- | :----- | | Total Shareholders' Equity | $848.44 million | $826.31 million | +$22.1 million (+2.68%) | | Accumulated Other Comprehensive Loss | -$47.77 million | -$52.84 million | +$5.07 million (+9.61%) | | Book value per common share | $26.23 | $25.51 | +$0.72 | | Tangible book value per common share (non-GAAP) | $21.61 | $20.84 | +$0.77 (+3.70%) | Results of Operations Operating results show increased net interest income and other income, a lower provision for credit losses, and improved return on assets and equity Net Interest Income Net interest income increased slightly, with stable net interest margin, despite a slight decrease in loan and interest-earning asset yields and negative impacts from the Kaplan sale and core conversion. The overall cost of funds declined Net Interest Income (QoQ) | Metric | Q2 2025 | Linked Quarter (Q1 2025) | | :------------------------------------ | :------ | :----------------------- | | Net Interest Income | $67.0 million | $66.0 million | | Loan Yields | 6.96% | 6.99% | | Interest-Earning Asset Yields | 6.31% | 6.35% | | Net Interest Margin | 3.68% | 3.68% | | Net Interest Spread | 2.88% | 2.91% | | Overall Cost of Funds | 2.78% | 2.82% | - Net interest margin was negatively impacted by approximately 2 bps due to the Kaplan, LA banking branch sale and approximately 3 bps due to excess cash carried during the core conversion process[16] Provision for Credit Losses The provision for credit losses decreased compared to the linked quarter, primarily due to an additional reserve on a loan transferred to nonaccrual status in the prior quarter - Provision for credit losses was $2.2 million for the quarter ended June 30, 2025, compared to $2.8 million from the linked quarter[18][53] - The current quarter's reserve was largely impacted by an additional $1.6 million reserve on a loan transferred to nonaccrual status[18] - The ratio of allowance for credit losses to loans held for investment was 1.02% at June 30, 2025, compared to 1.01% the linked quarter[18] Other Income Other income increased significantly, mainly driven by a gain from the Kaplan branch sale, partially offset by reductions in equity investment income and gain on sale of SBA loans Other Income (QoQ) | Metric | Q2 2025 | Linked Quarter (Q1 2025) | Change | | :-------------------- | :------ | :----------------------- | :----- | | Total Other Income | $14.4 million | $13.2 million | +$1.2 million (+8.99%) | | Gain on Branch Sale | $3.4 million | $0 | +$3.4 million | | Equity Investment Income | N/A | N/A | -$1.0 million (reduction) | | Gain on Sale of SBA Loans | N/A | N/A | -$475,000 (reduction) | Other Expenses Other expenses increased slightly, primarily due to higher data processing costs associated with the core conversion, partially offset by lower incentive-based salaries and benefits Other Expenses (QoQ, $ thousands) | Category | Q2 2025 | Linked Quarter (Q1 2025) | | :-------------------------- | :------ | :----------------------- | | Total Other Expenses | 51,206 | 50,578 | | Data Processing | 5,321 | 3,236 | | Salaries and Employee Benefits | 28,317 | 29,497 | - The increase in other expenses was largely attributable to a $2.1 million increase in data processing expenses, of which $1.0 million was associated with core conversion expenses[21] - The increase was offset by a $1.2 million reduction in salaries and benefits, largely due to lower incentive-based expenses[21] Return on Assets and Common Equity Return on average assets and common equity improved for the quarter, both on a GAAP and non-GAAP basis, reflecting strong overall performance Annualized Performance Ratios (QoQ) | Metric | Q2 2025 | Linked Quarter (Q1 2025) | | :------------------------------------ | :------ | :----------------------- | | Return to common shareholders on average assets | 1.07% | 1.00% | | Return to common shareholders on average common equity | 10.87% | 10.48% | | Non-GAAP return on average assets | 1.01% | 1.01% | | Non-GAAP return on average common equity | 10.23% | 10.53% | Corporate Information This section provides details for the Q2 2025 earnings conference call and an overview of Business First Bancshares, Inc. and its subsidiary, b1BANK Conference Call and Webcast Business First Bancshares, Inc. scheduled a conference call and webcast for July 28, 2025, to discuss the Q2 2025 financial results, with details provided for access - Executive management will host a conference call and webcast to discuss results on Monday, July 28, 2025, at 9:00 a.m. Central Time[24] - Interested parties can attend by dialing toll-free 1-800-715-9871 (North America only), conference ID 2799880, or via webcast at https://edge.media-server.com/mmc/p/jqbmtwns[24](index=24&type=chunk) About Business First Bancshares, Inc. Business First Bancshares, Inc., through its subsidiary b1BANK, is a financial institution with $7.9 billion in assets, offering commercial and personal banking services across Louisiana and Texas, and recognized for innovation and as a top workplace - Business First Bancshares, Inc, through its banking subsidiary b1BANK, has $7.9 billion in assets[26] - Manages $5.4 billion in assets under management through b1BANK's affiliate Smith Shellnut Wilson, LLC (SSW)[26] - Operates Banking Centers and Loan Production Offices in markets across Louisiana and Texas, providing commercial and personal banking products and services[26] - b1BANK is a 2024 Mastercard 'Innovation Award' winner and multiyear winner of American Banker Magazine's 'Best Banks to Work For'[26] Non-GAAP Financial Measures This section explains and reconciles non-GAAP financial measures, such as core and tangible metrics, to provide a clearer view of the company's underlying performance Explanation of Non-GAAP Measures This section clarifies the use of non-GAAP financial measures, such as 'core' and 'tangible,' which are provided to supplement GAAP measures and offer a clearer view of core business performance by excluding certain significant or distorting transactions - This press release includes certain non-GAAP financial measures (e.g, referenced as 'core' or 'tangible') intended to supplement, not substitute for, comparable GAAP measures[28] - 'Core' measures adjust income available to common shareholders for certain significant activities or transactions that, in management's opinion, can distort period-to-period comparisons of Business First's performance[28] - 'Tangible' measures adjust common equity by subtracting goodwill, core deposit intangibles, and customer intangibles, net of accumulated amortization[28] Non-GAAP Financial Data This section provides detailed reconciliations of various GAAP financial measures to their corresponding non-GAAP 'core' and 'tangible' counterparts, including income, expenses, pre-tax income, EPS, and balance sheet ratios, for both quarterly and year-to-date periods Core Net Income Available to Common Shareholders (QoQ) | Metric | Q2 2025 | Linked Quarter (Q1 2025) | | :------------------------------------ | :------ | :----------------------- | | Core Net Income Available to Common Shareholders | $19,525 thousand | $19,281 thousand | | Core Diluted Earnings Per Common Share | $0.66 | $0.65 | Tangible Common Equity and Assets (QoQ) | Metric | June 30, 2025 | March 31, 2025 | | :------------------------------------ | :------------ | :------------- | | Total Tangible Common Equity | $639,589 thousand | $616,153 thousand | | Total Tangible Assets | $7,811,373 thousand | $7,646,499 thousand | | Tangible Book Value per Common Share | $21.61 | $20.84 | | Tangible Common Equity to Tangible Assets | 8.19% | 8.06% | Core Efficiency Ratio (QoQ) | Metric | Q2 2025 | Linked Quarter (Q1 2025) | | :-------------------- | :------ | :----------------------- | | Core Efficiency Ratio | 63.51% | 63.35% | Legal and Regulatory Disclosures This section outlines forward-looking statement disclaimers, information on SEC filings, and details regarding the proposed acquisition of Progressive Bancorp, Inc Special Note Regarding Forward-Looking Statements The release contains forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially from expectations. The company disclaims any obligation to update these statements - Certain statements in this release may not be based on historical facts and are 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934[30] - Readers are cautioned not to place undue reliance on forward-looking statements, as actual results could differ materially due to various factors, including those specified in the Annual Report on Form 10-K and other public filings[30] - The company undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release[30] Additional Information Information about Business First's SEC filings is available free of charge through the SEC's EDGAR service or by direct request to the company - Additional information about Business First's reports filed with the SEC can be obtained free of charge using the SEC's EDGAR service on www.SEC.gov or by contacting the SEC[32] - These documents can also be obtained free of charge from Business First by directing a request to their corporate secretary[32] No Offer or Solicitation This release explicitly states that it does not constitute an offer to sell or a solicitation of an offer to purchase any securities of Business First, and no securities will be sold where unlawful - This release does not constitute or form part of any offer to sell, or a solicitation of an offer to purchase, any securities of Business First[34] - There will be no sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction[34] Additional Information and Where to Find It This section provides details regarding the proposed acquisition of Progressive, emphasizing that this communication is not a solicitation and directs investors to read the Registration Statement on Form S-4, including the proxy statement/prospectus, for important information - This communication is being made with respect to the proposed transaction involving Business First and Progressive and is not a solicitation of any vote or approval[36] - Business First will file a Registration Statement on Form S-4 with the SEC that will include a proxy statement of Progressive and a prospectus of Business First[37] - Investors and shareholders are urged to read carefully the Registration Statement and the proxy statement/prospectus, as well as other relevant documents, because they will contain important information[37] Participants in the Solicitation Business First, Progressive, and their respective directors, executive officers, and employees may be considered participants in the solicitation of proxies for the proposed transaction, with details on their interests to be provided in the proxy statement/prospectus - Business First, Progressive, and certain of their respective directors, executive officers, and employees may be deemed participants in the solicitation of proxies of Progressive's shareholders[40] - Information about Business First's directors and executive officers is available in its definitive proxy statement relating to its 2025 annual meeting of shareholders[40] - Other information regarding participants and a description of their direct and indirect interests will be contained in the proxy statement/prospectus[40] Selected Financial Information (Unaudited) This section presents unaudited key financial ratios, loan portfolio details, credit quality metrics, per share data, and breakdowns of other income and expenses Balance Sheet Ratios & Loan Portfolio This section presents key balance sheet ratios and a detailed breakdown of the loan portfolio, showing an increase in total loans held for investment, particularly in commercial and commercial real estate Balance Sheet Ratios (QoQ) | Metric | Q2 2025 | Linked Quarter (Q1 2025) | | :-------------------------- | :------ | :----------------------- | | Loans (HFI) to Deposits | 94.21% | 92.61% | | Shareholders' Equity to Assets Ratio | 10.67% | 10.61% | Loans Held for Investment by Category (QoQ, $ thousands) | Category | Q2 2025 | Linked Quarter (Q1 2025) | | :-------------------- | :------ | :----------------------- | | Commercial | 1,960,974 | 1,862,176 | | Real Estate: Commercial | 2,533,761 | 2,472,121 | | Real Estate: Construction | 600,292 | 633,698 | | Real Estate: Residential | 879,891 | 934,357 | | Total Loans (HFI) | 6,047,650 | 5,980,919 | Allowance for Loan Losses & Nonperforming Assets This section details the allowance for loan losses and nonperforming assets, indicating an increase in nonperforming loans and assets ratios, alongside a higher allowance for credit losses Allowance for Loan Losses (QoQ, $ thousands) | Metric | Q2 2025 | Linked Quarter (Q1 2025) | | :------------------------------------ | :------ | :----------------------- | | Balance, End of Period | 58,496 | 56,863 | | Provision for Loan Losses - Quarterly | 2,455 | 3,000 | | Allowance for Loan Losses to Total Loans (HFI) | 0.97% | 0.95% | | Allowance for Credit Losses to Total Loans (HFI) | 1.02% | 1.01% | Nonperforming Assets (QoQ, $ thousands) | Metric | Q2 2025 | Linked Quarter (Q1 2025) | | :------------------------------------ | :------ | :----------------------- | | Total Nonperforming Loans | 58,844 | 41,550 | | Total Nonperforming Assets | 60,317 | 42,832 | | Nonperforming Loans to Total Loans (HFI) | 0.97% | 0.69% | | Nonperforming Assets to Total Assets | 0.76% | 0.55% | Per Share Data & Annualized Performance Ratios This section provides per share data, including basic and diluted EPS, dividends, and book value, along with annualized performance ratios such as return on assets and equity, net interest margin, and efficiency ratio Per Share Data (QoQ) | Metric | Q2 2025 | Linked Quarter (Q1 2025) | | :-------------------------- | :------ | :----------------------- | | Basic Earnings per Common Share | $0.70 | $0.65 | | Diluted Earnings per Common Share | $0.70 | $0.65 | | Dividends per Common Share | $0.14 | $0.14 | | Book Value per Common Share | $26.23 | $25.51 | Annualized Performance Ratios (QoQ) | Metric | Q2 2025 | Linked Quarter (Q1 2025) | | :------------------------------------ | :------ | :----------------------- | | Return to Common Shareholders on Average Assets | 1.07% | 1.00% | | Return to Common Shareholders on Average Common Equity | 10.87% | 10.48% | | Net Interest Margin | 3.68% | 3.68% | | Efficiency Ratio | 62.83% | 63.85% | Other Expenses This section details various other expenses, showing an overall increase driven by data processing costs, partially offset by a decrease in salaries and employee benefits Other Expenses (QoQ, $ thousands) | Category | Q2 2025 | Linked Quarter (Q1 2025) | | :-------------------------- | :------ | :----------------------- | | Salaries and Employee Benefits | 28,317 | 29,497 | | Occupancy and Bank Premises | 3,119 | 3,401 | | Data Processing | 5,321 | 3,236 | | Total Other Expenses | 51,206 | 50,578 | Other Income This section itemizes other income sources, highlighting a significant gain from the branch sale, which contributed to the overall increase in other income Other Income (QoQ, $ thousands) | Category | Q2 2025 | Linked Quarter (Q1 2025) | | :-------------------------- | :------ | :----------------------- | | Service Charges on Deposit Accounts | 2,633 | 2,860 | | Gain on Sales of Loans | 781 | 1,256 | | Gain on Branch Sale | 3,360 | — | | Total Other Income | 14,415 | 13,226 | Consolidated Balance Sheets (Unaudited) The unaudited consolidated balance sheets provide a detailed overview of the company's assets, liabilities, and shareholders' equity at quarter-end Consolidated Balance Sheet Overview The consolidated balance sheet shows an increase in total assets and shareholders' equity, with notable changes in cash, loans, deposits, and borrowings, reflecting the quarter's operational activities and financial performance Consolidated Balance Sheet Highlights (QoQ, $ thousands) | Metric | June 30, 2025 | March 31, 2025 | | :------------------------------------ | :------------ | :------------- | | Total Assets | 7,948,294 | 7,784,728 | | Net Loans and Lease Receivable | 5,989,154 | 5,924,056 | | Total Deposits | 6,419,651 | 6,458,181 | | Federal Home Loan Bank Borrowings | 492,946 | 317,352 | | Total Liabilities | 7,099,854 | 6,958,416 | | Total Shareholders' Equity | 848,440 | 826,312 | Consolidated Statements of Income (Unaudited) The unaudited consolidated statements of income present the company's revenues, expenses, and net income for the quarter and year-to-date periods Consolidated Income Statement Overview The consolidated statement of income reflects an increase in net interest income and total other income, leading to higher net income available to common shareholders for the quarter and year-to-date periods Consolidated Income Statement Highlights (QoQ, $ thousands) | Metric | Q2 2025 | Linked Quarter (Q1 2025) | | :------------------------------------ | :------ | :----------------------- | | Total Interest Income | 114,850 | 113,693 | | Total Interest Expense | 47,808 | 47,710 | | Net Interest Income | 67,042 | 65,983 | | Provision for Credit Losses | 2,225 | 2,812 | | Total Other Income | 14,415 | 13,226 | | Total Other Expenses | 51,206 | 50,578 | | Net Income Available to Common Shareholders | 20,753 | 19,193 | Consolidated Net Interest Margin (Unaudited) This section provides an unaudited detailed analysis of the company's net interest income, interest-earning assets, and interest-bearing liabilities, and their respective yields and rates Net Interest Margin Details This section provides a detailed breakdown of interest-earning assets and interest-bearing liabilities, showing the calculation of net interest spread and net interest margin, which remained stable for the quarter Net Interest Margin Details (QoQ) | Metric | Q2 2025 | Linked Quarter (Q1 2025) | | :------------------------------------ | :------ | :----------------------- | | Average Interest Earning Assets | $7,299,899 thousand | $7,263,399 thousand | | Average Yield on Interest Earning Assets | 6.31% | 6.35% | | Average Interest Bearing Liabilities | $5,595,448 thousand | $5,624,162 thousand | | Average Rate on Interest Bearing Liabilities | 3.43% | 3.44% | | Net Interest Spread | 2.88% | 2.91% | | Net Interest Margin | 3.68% | 3.68% | | Overall Cost of Funds | 2.78% | 2.82% |