FB Financial (FBK) - 2025 Q3 - Quarterly Results

Use of non-GAAP Financial Measures This section explains the company's use of non-GAAP financial measures to provide a clearer view of operational performance and financial condition Non-GAAP Financial Measures Overview The company uses non-GAAP financial measures to clarify operating performance and financial condition, advising against their isolated use - Non-GAAP financial measures, including adjusted net income, adjusted diluted EPS, adjusted pre-tax pre-provision net revenue, core revenue, core noninterest expense, core efficiency ratio, adjusted return on average assets and equity, and tangible assets/equity, are used to exclude non-core/adjusted income and expense items or the impact of goodwill and other intangibles[3] - Management uses these non-GAAP measures to analyze performance, financial condition, and operational efficiency, believing they facilitate period-to-period comparisons and provide meaningful indications of operating performance by eliminating non-recurring or non-indicative gains and charges[4] - Investors are advised that non-GAAP financial measures should not be considered in isolation or as a substitute for GAAP measures, and their calculation methods may differ from those of other companies[4] Financial Summary and Key Metrics This section provides a concise overview of the company's financial performance and key metrics for the reported periods Selected Financial Highlights The company's Q3 2025 financial summary highlights significant growth in assets, loans, and deposits, with improved net interest income and NIM, despite an elevated efficiency ratio Selected Balance Sheet Data (Dollars in Thousands) | Metric | Sep 2025 | Jun 2025 | Sep 2024 | | :---------------------------------- | :--------- | :--------- | :--------- | | Cash and cash equivalents | $1,280,033 | $1,165,729 | $951,750 | | Loans HFI | $12,297,600 | $9,874,282 | $9,478,129 | | Total assets | $16,236,459 | $13,354,238 | $12,920,222 | | Total deposits | $13,812,955 | $11,403,470 | $10,976,211 | | Total common shareholders' equity | $1,978,043 | $1,611,130 | $1,562,329 | Selected Statement of Income Data (Dollars in Thousands) | Metric | Sep 2025 | Jun 2025 | Sep 2024 | | :---------------------------------- | :--------- | :--------- | :--------- | | Total interest income | $236,898 | $182,084 | $185,628 | | Total interest expense | $89,658 | $70,669 | $79,611 | | Net interest income | $147,240 | $111,415 | $106,017 | | Total noninterest income (loss) | $26,635 | $(34,552) | $(16,497) | | Total noninterest expense | $109,856 | $81,261 | $76,212 | | Net income applicable to FB Financial Corporation | $23,375 | $2,909 | $10,220 | Selected Ratios | Metric | Sep 2025 | Jun 2025 | Sep 2024 | | :------------------------------------------ | :--------- | :--------- | :--------- | | Net interest margin (NIM) (tax-equivalent basis) | 3.95 % | 3.68 % | 3.55 % | | Efficiency ratio | 63.2 % | 105.7 % | 85.1 % | | Nonperforming assets as a percentage of total assets | 0.89 % | 0.92 % | 0.99 % | | Tangible common equity to tangible assets* | 10.1 % | 10.4 % | 10.4 % | Consolidated Statements of Income This section details the company's consolidated income statement performance for three and nine-month periods, highlighting key revenue and expense trends Three Months Ended Q3 2025 saw significant growth in interest and net interest income, a recovery in noninterest income, and a substantial rise in noninterest expense due to merger costs Consolidated Statements of Income (Three Months Ended, Dollars in Thousands) | Metric | Sep 2025 | Jun 2025 | Sep 2024 | Sep 2025 vs. Jun 2025 (Percent variance) | Sep 2025 vs. Sep 2024 (Percent variance) | | :------------------------------------------ | :--------- | :--------- | :--------- | :--------------------------------------- | :--------------------------------------- | | Total interest income | $236,898 | $182,084 | $185,628 | 30.1 % | 27.6 % | | Net interest income | $147,240 | $111,415 | $106,017 | 32.2 % | 38.9 % | | Total noninterest income (loss) | $26,635 | $(34,552) | $(16,497) | (177.1)% | (261.5)% | | Total noninterest expense | $109,856 | $81,261 | $76,212 | 35.2 % | 44.1 % | | Net income applicable to FB Financial Corporation | $23,375 | $2,909 | $10,220 | 703.5 % | 128.7 % | - Merger and integration costs increased significantly to $16.06 million in Sep 2025, up from $2.73 million in Jun 2025 and zero in Sep 2024[9] - Diluted net income per common share rose to $0.43 in Sep 2025, compared to $0.06 in Jun 2025 and $0.22 in Sep 2024[9] Nine Months Ended Nine months ended September 2025 saw increased interest and net interest income, but decreased net income due to higher credit loss provisions and noninterest expenses Consolidated Statements of Income (Nine Months Ended, Dollars in Thousands) | Metric | Sep 2025 | Sep 2024 | Sep 2025 vs. Sep 2024 (Percent variance) | | :------------------------------------------ | :--------- | :--------- | :--------------------------------------- | | Total interest income | $598,688 | $539,169 | 11.0 % | | Net interest income | $366,296 | $308,122 | 18.9 % | | Provision for credit losses on loans HFI | $30,761 | $7,648 | 302.2 % | | Total noninterest income | $15,115 | $17,073 | (11.5)% | | Total noninterest expense | $270,666 | $223,725 | 21.0 % | | Net income applicable to FB Financial Corporation | $65,645 | $78,149 | (16.0)% | - Provision for credit losses on loans HFI increased by 302.2% to $30.76 million for the nine months ended Sep 2025 compared to Sep 2024[11] - Merger and integration costs, which were zero in Sep 2024, amounted to $19.19 million for the nine months ended Sep 2025[11] Consolidated Balance Sheets This section presents the company's consolidated balance sheet, detailing asset, liability, and equity changes Balance Sheet Overview September 2025 balance sheet shows substantial growth in total assets, loans, and deposits, with increased goodwill from acquisitions Consolidated Balance Sheets (Dollars in Thousands) | Metric | Sep 2025 | Jun 2025 | Sep 2024 | Sep 2025 vs. Jun 2025 (Percent variance) | Sep 2025 vs. Sep 2024 (Percent variance) | | :------------------------------------------ | :--------- | :--------- | :--------- | :--------------------------------------- | :--------------------------------------- | | Total assets | $16,236,459 | $13,354,238 | $12,920,222 | 85.6 % | 25.7 % | | Loans held for investment | $12,297,600 | $9,874,282 | $9,478,129 | 97.4 % | 29.7 % | | Total deposits | $13,812,955 | $11,403,470 | $10,976,211 | 83.8 % | 25.8 % | | Total common shareholders' equity | $1,978,043 | $1,611,130 | $1,562,329 | 90.4 % | 26.6 % | - Goodwill increased from $242.56 million in Jun 2025 to $350.35 million in Sep 2025, reflecting recent acquisition activities[13] - Money market and savings deposits showed strong annualized growth of 112.9% from Jun 2025 to Sep 2025, and 45.6% from Sep 2024 to Sep 2025[13] Average Balance and Interest Yield/Rate Analysis This section analyzes average balances, interest yields, and rates, providing insights into net interest margin performance Three Months Ended Q3 2025 saw net interest margin improve to 3.95% due to higher asset yields, a slight increase in deposit costs, and significant loan growth Key Yield/Rate Metrics (Three Months Ended) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :------------------------------------------ | :----------- | :----------- | :----------- | :----------- | :----------- | | Loans HFI average yield | 6.75 % | 6.44 % | 6.41 % | 6.51 % | 6.70 % | | Total interest-earning assets average yield | 6.35 % | 5.99 % | 5.91 % | 6.01 % | 6.20 % | | Total interest-bearing deposits average rate | 3.16 % | 3.10 % | 3.13 % | 3.37 % | 3.58 % | | Net interest margin (NIM) (tax-equivalent basis) | 3.95 % | 3.68 % | 3.55 % | 3.50 % | 3.55 % | | Cost of total deposits | 2.53 % | 2.48 % | 2.54 % | 2.70 % | 2.83 % | - Average balances for Loans HFI increased from $9.84 billion in June 2025 to $12.19 billion in September 2025[16] - The interest rate spread improved to 3.14% in Sep 2025 from 2.86% in Jun 2025[16] Nine Months Ended Nine months ended September 2025 showed improved net interest income and margin, decreased deposit costs, and increased average loans HFI balances Key Yield/Rate Metrics (Nine Months Ended) | Metric | Sep 30, 2025 | Sep 30, 2024 | | :------------------------------------------ | :----------- | :----------- | | Loans HFI average yield | 6.55 % | 6.68 % | | Total interest-earning assets average yield | 6.10 % | 6.13 % | | Total interest-bearing deposits average rate | 3.13 % | 3.53 % | | Net interest income (tax-equivalent basis) | $368,751 | $310,087 | | Net interest margin (NIM) (tax-equivalent basis) | 3.74 % | 3.51 % | | Cost of total deposits | 2.52 % | 2.79 % | - Average balances for Loans HFI increased to $10.56 billion for the nine months ended Sep 2025 from $9.34 billion in Sep 2024[28] - The interest rate spread improved to 2.93% for the nine months ended Sep 2025, up from 2.55% in the same period last year[28] Southern States Bancshares Inc. Opening Balance Sheet (Preliminary) This section presents the preliminary opening balance sheet for Southern States Bancshares Inc. post-acquisition Acquisition Balance Sheet Southern States Bancshares, Inc.'s preliminary acquisition balance sheet shows significant additions to assets, loans, and deposits, with substantial goodwill Southern States Bancshares, Inc. Opening Balance Sheet (Preliminary, In Thousands) | Metric | Amount | | :------------------------------------------ | :------- | | Total assets | $2,938,166 | | Loans, net of fair value adjustments | $2,266,549 | | Deposits | $2,468,530 | | Total liabilities | $2,569,811 | | Goodwill | $107,793 | | Core deposit intangible | $30,820 | | Total consideration | $368,355 | - The acquisition resulted in the recognition of $107.79 million in goodwill and $30.82 million in core deposit intangible[33] - The estimated fair values of assets acquired and liabilities assumed are preliminary and subject to change during the measurement period as allowed under ASC 805 - Business Combinations[33] Investments and Other Sources of Liquidity This section details the company's investment securities portfolio and various sources of liquidity Investment Securities September 2025 investment securities totaled $1.43 billion, primarily debt securities, showing an improved unrealized loss position Investment Securities, at Fair Value (Dollars in Thousands) | Security Type | Sep 2025 | % | Jun 2025 | % | Sep 2024 | % | | :------------------------------------------ | :--------- | :-- | :--------- | :-- | :--------- | :-- | | U.S. government agency securities | $653,197 | 46 % | $642,264 | 48 % | $516,833 | 33 % | | Mortgage-backed securities - residential | $587,587 | 41 % | $541,343 | 40 % | $879,589 | 56 % | | Total investment securities, at fair value | $1,428,401 | 100 % | $1,337,565 | 100 % | $1,567,922 | 100 % | - Investment securities as a percentage of total assets decreased to 8.80% in Sep 2025 from 10.0% in Jun 2025 and 12.1% in Sep 2024[36] - Unrealized loss on available-for-sale debt securities improved to $(55.89) million in Sep 2025 from $(63.26) million in Jun 2025[36] Sources of Liquidity Total on-balance sheet liquidity rose to $1.89 billion in September 2025, increasing total available sources of liquidity Sources of Liquidity (Dollars in Thousands) | Metric | Sep 2025 | Jun 2025 | Sep 2024 | | :------------------------------------------ | :--------- | :--------- | :--------- | | Cash and cash equivalents | $1,280,033 | $1,165,729 | $951,750 | | Unpledged available-for-sale debt securities | $608,716 | $547,354 | $510,538 | | Total on-balance sheet liquidity | $1,890,199 | $1,713,083 | $1,462,288 | | Unsecured borrowing capacity | $4,018,822 | $3,325,751 | $3,199,575 | | Total available sources of liquidity | $7,766,890 | $6,926,145 | $6,689,410 | - On-balance sheet liquidity as a percentage of total assets was 11.6% in Sep 2025, a decrease from 12.8% in Jun 2025 but an increase from 11.3% in Sep 2024[36] - Total available sources of liquidity increased by 12.1% from Jun 2025 to Sep 2025 and by 16.1% from Sep 2024 to Sep 2025[36] Loan Portfolio This section provides an overview of the company's loan portfolio composition and unfunded commitments Loan Portfolio Composition Total loans HFI grew to $12.30 billion in September 2025, with more floating-rate loans and a shift towards Community markets Loan Portfolio (Loans HFI, Dollars in Thousands) | Loan Type | Sep 2025 | % of Total | Jun 2025 | % of Total | Sep 2024 | % of Total | | :------------------------------------------ | :--------- | :--------- | :--------- | :--------- | :--------- | :--------- | | Commercial and industrial | $2,155,105 | 17 % | $1,788,911 | 18 % | $1,688,815 | 18 % | | Construction | $1,195,392 | 10 % | $1,022,678 | 10 % | $1,079,726 | 11 % | | Residential real estate: 1-to-4 family mortgage | $1,852,626 | 15 % | $1,660,696 | 17 % | $1,612,031 | 17 % | | Commercial real estate: Non-owner occupied | $2,890,233 | 24 % | $2,198,689 | 22 % | $2,048,036 | 22 % | | Total loans HFI | $12,297,600 | 100 % | $9,874,282 | 100 % | $9,478,129 | 100 % | - The percentage of loans HFI portfolio with floating interest rates increased to 51.5% in Sep 2025 from 49.6% in Jun 2025 and 49.2% in Sep 2024[39] - Loans by market showed a shift, with Metropolitan loans decreasing as a percentage of total from 82% in Jun 2025 to 69% in Sep 2025, while Community loans increased from 5% to 21%[39] Unfunded Loan Commitments Unfunded loan commitments rose to $3.19 billion in September 2025, with commercial and industrial loans as the largest category Unfunded Loan Commitments (Dollars in Thousands) | Commitment Type | Sep 2025 | % of Total | Jun 2025 | % of Total | Sep 2024 | % of Total | | :------------------------------------------ | :--------- | :--------- | :--------- | :--------- | :--------- | :--------- | | Commercial and industrial | $1,451,366 | 46 % | $1,396,533 | 49 % | $1,314,683 | 48 % | | Construction | $731,742 | 23 % | $535,669 | 19 % | $510,157 | 19 % | | Residential line of credit | $808,961 | 25 % | $745,570 | 26 % | $735,928 | 27 % | | Total unfunded loans HFI | $3,190,375 | 100 % | $2,861,685 | 100 % | $2,713,360 | 100 % | - Total unfunded loan commitments increased by 11.5% from Jun 2025 to Sep 2025 and by 17.6% from Sep 2024 to Sep 2025[39] Asset Quality This section assesses the company's asset quality, focusing on credit loss allowance, net charge-offs, and nonperforming assets Allowance for Credit Losses (ACL) on Loans HFI ACL on loans HFI rose to $185.0 million in September 2025, driven by provisions and acquired loan allowance, with the ACL ratio slightly decreasing Allowance for Credit Losses on Loans HFI Roll Forward Summary (Dollars in Thousands) | Metric | Sep 2025 | Jun 2025 | Sep 2024 | | :------------------------------------------ | :--------- | :--------- | :--------- | | ACL on loans HFI at the beginning of the period | $148,948 | $150,531 | $155,055 | | Provision for credit losses on loans HFI | $29,957 | $5,746 | $1,856 | | Initial allowance on acquired loans with credit deterioration | $7,518 | — | — | | ACL on loans HFI at the end of the period | $184,993 | $148,948 | $156,260 | | ACL on loans HFI as a percentage of loans HFI | 1.50 % | 1.51 % | 1.65 % | - The provision for credit losses on loans HFI increased significantly to $29.96 million in Sep 2025 from $5.75 million in Jun 2025[41] - The initial allowance on acquired loans with credit deterioration contributed $7.52 million to the ACL in Sep 2025[41] Net Charge-offs Net charge-offs increased to $(1.43) million in September 2025, primarily from consumer and commercial loans, raising the annualized ratio to 0.05% Net Charge-offs (Dollars in Thousands) | Metric | Sep 2025 | Jun 2025 | Sep 2024 | | :------------------------------------------ | :--------- | :--------- | :--------- | | Total charge-offs | $(1,709) | $(1,454) | $(915) | | Total recoveries | $279 | $973 | $264 | | Net charge-offs | $(1,430) | $(481) | $(651) | | Annualized net charge-offs as a percentage of average loans HFI | 0.05 % | 0.02 % | 0.03 % | - Annualized net charge-offs as a percentage of average loans HFI increased to 0.05% in Sep 2025 from 0.02% in Jun 2025[41] Nonperforming Assets Total nonperforming assets rose to $145.20 million in September 2025, but the ratio to total assets slightly decreased to 0.89% Nonperforming Assets (Dollars in Thousands) | Metric | Sep 2025 | Jun 2025 | Sep 2024 | | :------------------------------------------ | :--------- | :--------- | :--------- | | Loans past due 90 days or more and accruing interest | $26,311 | $21,962 | $26,250 | | Nonaccrual loans | $89,448 | $73,950 | $64,585 | | Total nonperforming loans HFI | $115,759 | $95,912 | $90,835 | | Total nonperforming assets | $145,199 | $123,038 | $127,333 | | Total nonperforming assets as a percentage of total assets | 0.89 % | 0.92 % | 0.99 % | - Total nonperforming loans HFI as a percentage of loans HFI was 0.94% in Sep 2025, a slight decrease from 0.97% in Jun 2025[41] - Nonaccrual loans as a percentage of loans HFI increased to 0.73% in Sep 2025 from 0.75% in Jun 2025 and 0.68% in Sep 2024[41] Selected Deposit Data This section details the company's deposit base by market, customer segment, and estimated insurance status Deposits by Market and Customer Segment Total deposits grew to $13.81 billion in September 2025, with a notable shift to Community deposits and Consumer/Commercial segments remaining dominant Deposits by Market (Dollars in Thousands) | Market | Sep 2025 | % | Jun 2025 | % | Sep 2024 | % | | :------------------------------------------ | :--------- | :-- | :--------- | :-- | :--------- | :-- | | Metropolitan | $8,549,817 | 62 % | $8,275,006 | 73 % | $7,794,790 | 71 % | | Community | $4,579,933 | 33 % | $2,436,243 | 21 % | $2,459,641 | 22 % | | Brokered/wholesale | $487,765 | 4 % | $518,719 | 4 % | $519,200 | 5 % | | Total | $13,812,955 | 100 % | $11,403,470 | 100 % | $10,976,211 | 100 % | Deposits by Customer Segment (Dollars in Thousands) | Segment | Sep 2025 | % | Jun 2025 | % | Sep 2024 | % | | :------------------------------------------ | :--------- | :-- | :--------- | :-- | :--------- | :-- | | Consumer | $5,966,458 | 43 % | $4,772,582 | 42 % | $4,676,492 | 43 % | | Commercial | $6,045,418 | 44 % | $4,835,968 | 42 % | $4,886,660 | 45 % | | Public | $1,801,079 | 13 % | $1,794,920 | 16 % | $1,413,059 | 12 % | - Community deposits increased by 88.0% from Jun 2025 to Sep 2025, reflecting a significant shift in deposit sourcing[44] Estimated Insured and Uninsured Deposits Uninsured and uncollateralized deposits rose to $3.94 billion in September 2025, but their percentage of total deposits decreased to 28.5% Estimated Insured and Uninsured Deposits (Dollars in Thousands) | Metric | Sep 2025 | Jun 2025 | Sep 2024 | | :------------------------------------------ | :--------- | :--------- | :--------- | | Estimated insured or collateralized deposits | $9,871,337 | $8,418,783 | $7,654,786 | | Estimated uninsured and uncollateralized deposits | $3,941,618 | $2,984,687 | $3,321,425 | | Estimated uninsured and uncollateralized deposits as a % of total deposits | 28.5 % | 26.2 % | 30.3 % | - The percentage of uninsured and uncollateralized deposits to total deposits decreased to 28.5% in Sep 2025 from 30.3% in Sep 2024[44] Preliminary Capital Ratios This section outlines the company's preliminary capital ratios, including tangible common equity and regulatory metrics Computation of Tangible Common Equity to Tangible Assets Tangible common equity rose to $1.59 billion in September 2025, with the tangible common equity to tangible assets ratio stable at 10.1% Computation of Tangible Common Equity to Tangible Assets (Dollars in Thousands) | Metric | Sep 30, 2025 | Dec 31, 2024 | | :------------------------------------------ | :----------- | :----------- | | Total Common Shareholders' Equity | $1,978,043 | $1,567,538 | | Goodwill | $350,353 | $242,561 | | Other intangibles | $33,216 | $5,762 | | Tangible Common Equity | $1,594,474 | $1,319,215 | | Total Assets | $16,236,459 | $13,157,482 | | Tangible Assets | $15,852,890 | $12,909,159 | | Tangible Common Equity to Tangible Assets* | 10.1 % | 10.2 % | - The increase in goodwill and other intangibles reflects recent acquisition activities[48] Preliminary Regulatory Capital Ratios Preliminary regulatory capital ratios, including Common Equity Tier 1 and Total Risk-Based Capital, generally decreased in September 2025, indicating reduced capital buffers Preliminary Regulatory Capital Ratios (Dollars in Thousands) | Metric | Sep 30, 2025 | Dec 31, 2024 | | :------------------------------------------ | :----------- | :----------- | | Common Equity Tier 1 Capital | $1,662,376 | $1,450,722 | | Tier 1 Capital | $1,662,376 | $1,480,722 | | Total Capital | $1,923,686 | $1,721,941 | | Common Equity Tier 1 | 11.7 % | 12.8 % | | Tier 1 Risk-Based | 11.7 % | 13.1 % | | Total Risk-Based | 13.5 % | 15.2 % | | Tier 1 Leverage | 10.7 % | 11.3 % | - Preliminary Total Risk-Weighted Assets increased significantly to $14.22 billion in Sep 2025 from $11.31 billion in Dec 2024[48] Segment Data This section details the financial performance for the Banking and Mortgage segments Banking Segment The Banking segment saw increased net interest income and pre-tax net contribution recovery, with an improved efficiency ratio despite higher merger costs Banking Segment Performance (Three Months Ended, Dollars in Thousands) | Metric | Sep 2025 | Jun 2025 | Sep 2024 | | :------------------------------------------ | :--------- | :--------- | :--------- | | Net interest income | $144,859 | $108,909 | $104,335 | | Provisions for credit losses | $34,070 | $582 | $1,861 | | Merger and integration costs | $16,057 | $2,734 | — | | Pre-tax net contribution (loss) after allocations | $26,898 | $(6,723) | $10,990 | | Efficiency ratio | 61.4 % | 110.0 % | 83.1 % | | Core efficiency ratio* | 50.6 % | 52.8 % | 53.9 % | - Total assets for the Banking segment increased to $15.60 billion in Sep 2025 from $12.74 billion in Jun 2025[51] - Merger and integration costs for the Banking segment increased substantially to $16.06 million in Sep 2025 from $2.73 million in Jun 2025[51] Mortgage Segment The Mortgage segment recovered to a $2.70 million pre-tax net contribution in September 2025, driven by increased mortgage banking income and improved efficiency Mortgage Segment Performance (Three Months Ended, Dollars in Thousands) | Metric | Sep 2025 | Jun 2025 | Sep 2024 | | :------------------------------------------ | :--------- | :--------- | :--------- | | Net interest income | $2,381 | $2,506 | $1,682 | | Mortgage banking income | $13,484 | $13,029 | $11,553 | | Pre-tax net contribution (loss) after allocations | $2,704 | $(3,012) | $404 | | Efficiency ratio | 80.9 % | 88.9 % | 96.6 % | | Mortgage loan sales | $343,450 | $391,061 | $327,269 | | Mortgage sale margin | 2.69 % | 2.86 % | 2.84 % | - Mortgage banking income increased to $13.48 million in Sep 2025 from $13.03 million in Jun 2025 and $11.55 million in Sep 2024[51] - The change in fair value of mortgage servicing rights, net of hedging, was a loss of $(3.39) million in Sep 2025, an improvement from $(4.23) million in Jun 2025[51] Non-GAAP Reconciliations This section reconciles GAAP to non-GAAP financial measures, offering adjusted views of income, revenue, and capital ratios Adjusted Net Income Q3 2025 adjusted net income significantly increased to $57.61 million, excluding non-recurring items like merger costs and initial credit loss provisions Adjusted Net Income (Three Months Ended, Dollars in Thousands) | Metric | Sep 2025 | Jun 2025 | Sep 2024 | | :------------------------------------------ | :--------- | :--------- | :--------- | | Income (loss) before income taxes (GAAP) | $29,602 | $(9,735) | $11,394 | | Plus initial provision for credit losses on acquired loans and unfunded commitments | $28,366 | — | — | | Plus merger and integration costs | $16,057 | $2,734 | — | | Adjusted net income (Non-GAAP) | $57,606 | $40,821 | $40,132 | | Adjusted diluted earnings per common share | $1.07 | $0.88 | $0.86 | - For the nine months ended Sep 2025, adjusted net income was $138.54 million, compared to $119.45 million in Sep 2024[55] - A non-recurring tax benefit of $(8.71) million was recorded during the three months ended June 30, 2025, due to the expiration of the statute of limitations[56] Adjusted Pre-Tax Pre-Provision Net Revenue Q3 2025 adjusted pre-tax pre-provision net revenue rose substantially to $80.98 million, reflecting improved operational performance before taxes and credit losses Adjusted Pre-Tax Pre-Provision Net Revenue (Three Months Ended, Dollars in Thousands) | Metric | Sep 2025 | Jun 2025 | Sep 2024 | | :------------------------------------------ | :--------- | :--------- | :--------- | | Pre-tax pre-provision net revenue (GAAP) | $64,019 | $(4,398) | $13,308 | | Plus merger and integration costs | $16,057 | $2,734 | — | | Adjusted pre-tax pre-provision net revenue (Non-GAAP) | $80,980 | $58,649 | $53,762 | - For the nine months ended Sep 2025, adjusted pre-tax pre-provision net revenue was $191.76 million, an increase from $157.31 million in Sep 2024[58] Adjusted Tangible Net Income Q3 2025 adjusted tangible net income reached $59.14 million, clarifying earnings by adjusting for amortization, non-core gains/losses, and merger costs Adjusted Tangible Net Income (Three Months Ended, Dollars in Thousands) | Metric | Sep 2025 | Jun 2025 | Sep 2024 | | :------------------------------------------ | :--------- | :--------- | :--------- | | Income (loss) before income taxes (GAAP) | $29,602 | $(9,735) | $11,394 | | Plus amortization of core deposit and other intangibles | $2,079 | $631 | $719 | | Plus initial provision for credit losses on acquired loans and unfunded commitments | $28,366 | — | — | | Plus merger and integration costs | $16,057 | $2,734 | — | | Adjusted tangible net income (Non-GAAP) | $59,144 | $41,288 | $40,663 | - For the nine months ended Sep 2025, adjusted tangible net income was $141.03 million, up from $121.12 million in Sep 2024[58] Core Efficiency Ratio (Consolidated) Consolidated core efficiency ratio improved to 53.3% in September 2025, indicating enhanced operational efficiency after adjusting for non-core expenses and income Core Efficiency Ratio (Consolidated, Three Months Ended, Dollars in Thousands) | Metric | Sep 2025 | Jun 2025 | Sep 2024 | | :------------------------------------------ | :--------- | :--------- | :--------- | | Total noninterest expense (GAAP) | $109,856 | $81,261 | $76,212 | | Core noninterest expense (Non-GAAP) | $93,529 | $78,527 | $76,212 | | Total revenue (GAAP) | $173,875 | $76,863 | $89,520 | | Core revenue (tax-equivalent basis) (Non-GAAP) | $175,357 | $137,997 | $130,591 | | Efficiency ratio (GAAP) | 63.2% | 105.7% | 85.1% | | Core efficiency ratio (tax equivalent basis) (Non-GAAP) | 53.3% | 56.9% | 58.4% | - The core efficiency ratio for the nine months ended Sep 2025 was 56.4%, an improvement from 58.2% in Sep 2024[61] Banking Segment Core Efficiency Ratio Banking segment core efficiency ratio improved to 50.6% in September 2025, reflecting better cost management relative to core revenue despite increased merger costs Banking Segment Core Efficiency Ratio (Three Months Ended, Dollars in Thousands) | Metric | Sep 2025 | Jun 2025 | Sep 2024 | | :------------------------------------------ | :--------- | :--------- | :--------- | | Banking segment noninterest expense (GAAP) | $96,969 | $67,330 | $63,114 | | Banking segment core noninterest expense (Non-GAAP) | $80,642 | $64,596 | $63,114 | | Banking segment total revenue (GAAP) | $157,937 | $61,189 | $75,965 | | Banking segment total core revenue (tax-equivalent basis) (Non-GAAP) | $159,419 | $122,356 | $117,046 | | Banking segment efficiency ratio (GAAP) | 61.4% | 110.0% | 83.1% | | Banking segment core efficiency ratio (tax-equivalent basis) (Non-GAAP) | 50.6% | 52.8% | 53.9% | - The Banking segment's core efficiency ratio for the nine months ended Sep 2025 was 53.0%, an improvement from 54.0% in Sep 2024[63] Mortgage Segment Core Efficiency Ratio Mortgage segment core efficiency ratio improved to 80.9% in September 2025, indicating enhanced operational efficiency Mortgage Segment Core Efficiency Ratio (Three Months Ended, Dollars in Thousands) | Metric | Sep 2025 | Jun 2025 | Sep 2024 | | :------------------------------------------ | :--------- | :--------- | :--------- | | Mortgage segment noninterest expense (GAAP) | $12,887 | $13,931 | $13,098 | | Mortgage segment core noninterest expense (Non-GAAP) | $12,887 | $13,931 | $13,098 | | Mortgage segment total revenue (GAAP) | $15,938 | $15,674 | $13,555 | | Mortgage segment core total revenue (Non-GAAP) | $15,938 | $15,641 | $13,545 | | Mortgage segment efficiency ratio (GAAP) | 80.9% | 88.9% | 96.6% | | Mortgage segment core efficiency ratio (tax-equivalent basis) (Non-GAAP) | 80.9% | 89.1% | 96.7% | - The Mortgage segment's core efficiency ratio for the nine months ended Sep 2025 was 85.9%, an improvement from 93.9% in Sep 2024[64] Tangible Assets, Common Equity and Related Measures Tangible assets rose to $15.85 billion and tangible common equity to $1.59 billion in September 2025, with tangible book value per share at $29.83 Tangible Assets, Common Equity and Related Measures (Dollars in Thousands) | Metric | Sep 2025 | Jun 2025 | Sep 2024 | | :------------------------------------------ | :--------- | :--------- | :--------- | | Total assets (GAAP) | $16,236,459 | $13,354,238 | $12,920,222 | | Tangible assets (Non-GAAP) | $15,852,890 | $13,107,202 | $12,671,212 | | Total common shareholders' equity (GAAP) | $1,978,043 | $1,611,130 | $1,562,329 | | Tangible common equity (Non-GAAP) | $1,594,474 | $1,364,094 | $1,313,319 | | Tangible book value per common share | $29.83 | $29.78 | $28.15 | | Tangible common equity to tangible assets | 10.1% | 10.4% | 10.4% | - Tangible book value per common share increased to $29.83 in Sep 2025 from $29.78 in Jun 2025 and $28.15 in Sep 2024[66] - Goodwill and other intangibles increased significantly in Sep 2025, reflecting recent acquisition activity[66] Adjusted Return on Average Tangible Common Equity and Related Measures Q3 2025 adjusted return on average tangible common equity increased to 14.7%, reflecting enhanced profitability relative to tangible equity after non-core adjustments Adjusted Return on Average Tangible Common Equity (Three Months Ended, Dollars in Thousands) | Metric | Sep 2025 | Jun 2025 | Sep 2024 | | :------------------------------------------ | :--------- | :--------- | :--------- | | Net income (GAAP) | $23,375 | $2,909 | $10,220 | | Average tangible common equity (Non-GAAP) | $1,592,447 | $1,335,747 | $1,274,241 | | Return on average tangible common equity (GAAP) | 5.82% | 0.87% | 3.19% | | Adjusted tangible net income (Non-GAAP) | $59,144 | $41,288 | $40,663 | | Adjusted return on average tangible common equity (Non-GAAP) | 14.7% | 12.4% | 12.7% | - Adjusted return on average tangible common equity for the nine months ended Sep 2025 was 13.3%, slightly up from 13.1% in Sep 2024[69] Adjusted Return on Average Assets and Related Measures Q3 2025 adjusted return on average assets increased to 1.43%, indicating improved asset utilization and profitability after adjusting for non-core items Adjusted Return on Average Assets (Three Months Ended, Dollars in Thousands) | Metric | Sep 2025 | Jun 2025 | Sep 2024 | | :------------------------------------------ | :--------- | :--------- | :--------- | | Net income (GAAP) | $23,375 | $2,909 | $10,220 | | Average assets (GAAP) | $16,007,788 | $13,032,490 | $12,741,950 | | Return on average assets (GAAP) | 0.58% | 0.09% | 0.32% | | Adjusted net income (Non-GAAP) | $57,606 | $40,821 | $40,132 | | Adjusted return on average assets (Non-GAAP) | 1.43% | 1.26% | 1.25% | - Adjusted pre-tax pre-provision return on average assets for the three months ended Sep 2025 was 2.01%, an increase from 1.81% in Jun 2025[69]