Home BancShares(HOMB) - 2025 Q3 - Quarterly Results

markdown [Executive Summary & Quarterly Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Quarterly%20Highlights) This section provides an overview of the company's record-breaking quarterly performance, highlighting key financial metrics and strategic achievements [Company Overview](index=1&type=section&id=Company%20Overview) Home BancShares, Inc. (HOMB), parent company of Centennial Bank, reported a record-breaking third quarter in 2025, driven by strong margins, efficiencies, and revenues - Home BancShares, Inc. (HOMB) reported a **record-breaking third quarter for 2025**, with **strong performance attributed to powerful, peer-leading margins, efficiencies, and robust revenues**[1](index=1&type=chunk)[2](index=2&type=chunk) [Key Financial Metrics (Q3 2025 vs. Prior Quarters)](index=1&type=section&id=Key%20Financial%20Metrics%20(Q3%202025%20vs.%20Prior%20Quarters)) The company achieved record net income and diluted EPS in Q3 2025, alongside improvements in ROA, ROE, and NIM, while asset quality remained strong with robust capital ratios Quarterly Financial Highlights | Metric | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Net income | $123.6 million | $118.4 million | $115.2 million | $100.6 million | $100.0 million | | Net income, as adjusted (non-GAAP) | $119.7 million | $114.6 million | $111.9 million | $99.8 million | $99.0 million | | Total revenue (net) | $277.7 million | $271.0 million | $260.1 million | $258.4 million | $258.0 million | | Income before income taxes | $159.3 million | $152.0 million | $147.2 million | $129.5 million | $129.1 million | | Pre-tax, pre-provision, net income (PPNR) (non-GAAP) | $162.8 million | $155.0 million | $147.2 million | $146.2 million | $148.0 million | | ROA | 2.17% | 2.08% | 2.07% | 1.77% | 1.74% | | NIM | 4.56% | 4.44% | 4.44% | 4.39% | 4.28% | | ROE | 11.91% | 11.77% | 11.75% | 10.13% | 10.23% | | Diluted earnings per share | $0.63 | $0.60 | $0.58 | $0.51 | $0.50 | | Non-performing assets to total assets | 0.56% | 0.60% | 0.56% | 0.63% | 0.63% | | Common equity tier 1 capital | 16.1% | 15.6% | 15.4% | 15.1% | 14.7% | | Book value per share | $21.41 | $20.71 | $20.40 | $19.92 | $19.91 | | Dividends per share | $0.20 | $0.20 | $0.195 | $0.195 | $0.195 | - Net income reached a **record $123.6 million** in Q3 2025, with **diluted earnings per share at $0.63**, also a record[2](index=2&type=chunk)[12](index=12&type=chunk) - **Return on average assets (ROA) showed a steady upward trend, reaching 2.17%** in Q3 2025, reflecting **disciplined asset management and operational efficiency**[2](index=2&type=chunk)[6](index=6&type=chunk) [Financial Performance Trends](index=2&type=section&id=Financial%20Performance%20Trends) This section analyzes the company's profitability, operational efficiency, and net interest metrics over recent quarters, demonstrating consistent financial improvement [Profitability Metrics (Net Income, PPNR, ROA)](index=2&type=section&id=Profitability%20Metrics%20(Net%20Income,%20PPNR,%20ROA)) Home BancShares demonstrated consistent improvement in profitability over the past five quarters, with record net income and adjusted net income in Q3 2025, robust PPNR, and a steady upward trend in ROA - Net income reached a **record $123.6 million** in Q3 2025, and **adjusted net income (non-GAAP) also set a new high at $119.7 million**, indicating **sustained upward profitability**[4](index=4&type=chunk) - **Pre-tax, pre-provision, net income (PPNR) (non-GAAP) demonstrated robust operational performance** over the past five quarters, reflecting **strong earnings power before credit loss provisions and taxes**[4](index=4&type=chunk) - **Return on average assets (ROA) showed a strong and consistent upward trend, reaching 2.17%** in Q3 2025, highlighting **efficient asset utilization**[6](index=6&type=chunk) [Operational Efficiency (Efficiency Ratio)](index=2&type=section&id=Operational%20Efficiency%20(Efficiency%20Ratio)) The company maintained strong and consistent performance in managing operating expenses, as evidenced by its efficiency ratio over the past five quarters, indicating effective conversion of revenue into net income - The efficiency ratio, a key metric for operational efficiency, reflects **strong and consistent performance** in managing operating expenses over the past five quarters[7](index=7&type=chunk) Efficiency Ratio Trend | Metric | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Efficiency ratio | 40.21% | 41.68% | 42.22% | 42.24% | 41.42% | | Efficiency ratio, as adjusted (non-GAAP) | 40.95% | 42.01% | 42.84% | 42.00% | 41.66% | [Net Interest Metrics (NIM, Yields, Spreads)](index=3&type=section&id=Net%20Interest%20Metrics%20(NIM,%20Yields,%20Spreads)) The company's net interest margin (NIM) improved in Q3 2025, driven by a higher yield on loans and a slight decrease in the rate on interest-bearing deposits, indicating enhanced profitability and operational efficiency - **Net interest margin (NIM) increased to 4.56%** in Q3 2025 **from 4.44%** in Q2 2025[2](index=2&type=chunk)[13](index=13&type=chunk) - The yield on loans **rose to 7.39%** in Q3 2025 **from 7.36%** in Q2 2025, while **average loans increased from $15.06 billion to $15.22 billion**[13](index=13&type=chunk) - The rate on interest-bearing deposits **slightly decreased to 2.62%** in Q3 2025 **from 2.64%** in Q2 2025, with **average interest-bearing deposits decreasing from $13.43 billion to $13.32 billion**[13](index=13&type=chunk) [Operating Highlights](index=3&type=section&id=Operating%20Highlights) This section details the company's net income, earnings per share, credit loss provisions, and the drivers of net interest and non-interest income and expenses for the quarter [Net Income and EPS Analysis](index=3&type=section&id=Net%20Income%20and%20EPS%20Analysis) Home BancShares achieved record net income of $123.6 million and diluted earnings per share of $0.63 for Q3 2025, with adjusted figures of $119.7 million and $0.61 per share respectively - **Net income for Q3 2025 was a record $123.6 million**, with **diluted earnings per share at $0.63**[12](index=12&type=chunk) - **Adjusted net income (non-GAAP) was $119.7 million**, and **adjusted diluted earnings per share (non-GAAP) was $0.61** for Q3 2025[12](index=12&type=chunk) [Credit Loss Provision and Recoveries](index=3&type=section&id=Credit%20Loss%20Provision%20and%20Recoveries) The company recorded a provision for credit losses on loans of $6.7 million in Q3 2025, partially offset by recoveries on unfunded commitments and investment securities, resulting in a total credit loss expense of $3.5 million - **Provision for credit losses on loans was $6.7 million** for Q3 2025[12](index=12&type=chunk) - The company recorded a **$1.0 million recovery of credit losses on unfunded commitments and a $2.2 million recovery on investment securities**[12](index=12&type=chunk) - **Total credit loss expense for Q3 2025 was $3.5 million**[12](index=12&type=chunk) [Net Interest Income Drivers](index=3&type=section&id=Net%20Interest%20Income%20Drivers) Net interest income on a fully taxable equivalent basis increased to $229.1 million in Q3 2025, primarily due to a $4.8 million increase in interest income (driven by higher loan income) and a $1.8 million decrease in interest expense (due to lower subordinated debt and deposit interest expense) - **Net interest income on a fully taxable equivalent basis increased to $229.1 million in Q3 2025 from $222.5 million in Q2 2025**[15](index=15&type=chunk) - The increase was driven by a **$4.8 million rise in interest income, primarily from a $7.5 million increase in loan income**, partially offset by a $2.7 million decrease in income from deposits with other banks[15](index=15&type=chunk) - **Interest expense decreased by $1.8 million**, mainly due to a **$1.1 million reduction in subordinated debt interest expense (following a $20.0 million repurchase)** and a $527,000 decrease in deposit interest expense[15](index=15&type=chunk) [Non-Interest Income Breakdown](index=4&type=section&id=Non-Interest%20Income%20Breakdown) Non-interest income for Q3 2025 totaled $51.5 million, with significant contributions from other income, service charges and fees, and mortgage lending income, including recoveries on historic losses and a gain on subordinated debt retirement - **Total non-interest income for Q3 2025 was $51.5 million**[16](index=16&type=chunk) - Key components of non-interest income: * **Other income: $14.0 million (including $2.0 million from recoveries on historic losses and $1.9 million gain on subordinated debt retirement)** * **Other service charges and fees: $12.1 million** * **Service charges on deposit accounts: $10.5 million** * **Mortgage lending income: $4.7 million** * **Trust fees: $4.6 million** [Non-Interest Expense Breakdown](index=4&type=section&id=Non-Interest%20Expense%20Breakdown) Non-interest expense for Q3 2025 was $114.8 million, primarily driven by salaries and employee benefits, other operating expenses, and occupancy and equipment costs, resulting in an efficiency ratio of 40.21% - **Total non-interest expense for Q3 2025 was $114.8 million**[17](index=17&type=chunk) - Major components of non-interest expense: * **Salaries and employee benefits: $63.8 million** * **Other operating expense: $27.3 million** * **Occupancy and equipment expenses: $14.8 million** * **Data processing expenses: $8.9 million** - **The efficiency ratio for Q3 2025 was 40.21%**, and the **adjusted efficiency ratio (non-GAAP) was 40.95%**[17](index=17&type=chunk) [Financial Condition](index=4&type=section&id=Financial%20Condition) This section reviews the company's balance sheet, loan portfolio growth, asset quality, capital management, and shareholders' equity, reflecting its financial strength [Balance Sheet Overview (Loans, Deposits, Assets)](index=4&type=section&id=Balance%20Sheet%20Overview%20(Loans,%20Deposits,%20Assets)) Total loans receivable reached a record $15.29 billion at September 30, 2025, showing growth from the prior quarter, while total deposits and total assets experienced slight decreases - **Total loans receivable reached a record $15.29 billion** at September 30, 2025, **up from $15.18 billion** at June 30, 2025[19](index=19&type=chunk) - **Total deposits were $17.33 billion** at September 30, 2025, a **decrease from $17.49 billion** at June 30, 2025[19](index=19&type=chunk) - **Total assets were $22.71 billion** at September 30, 2025, **down from $22.91 billion** at June 30, 2025[19](index=19&type=chunk) [Loan Portfolio Growth and Composition](index=4&type=section&id=Loan%20Portfolio%20Growth%20and%20Composition) The company experienced a $105.3 million increase in total loans during Q3 2025, driven by $164.8 million in organic loan growth from its community banking footprint, partially offset by a decline in Centennial CFG loans - The Company had a **$105.3 million increase in total loans** during Q3 2025[20](index=20&type=chunk) - Community banking footprint generated **$164.8 million in organic loan growth**[20](index=20&type=chunk) - **Centennial CFG experienced a $59.4 million organic loan decline**, with **total loans of $1.78 billion** at quarter-end[20](index=20&type=chunk) [Asset Quality and Non-Performing Assets](index=4&type=section&id=Asset%20Quality%20and%20Non-Performing%20Assets) Asset quality improved in Q3 2025, with non-performing loans and non-performing assets decreasing both in absolute terms and as a percentage of total loans/assets, while the allowance for credit losses remained strong relative to non-performing loans - **Non-performing loans to total loans decreased to 0.56%** at September 30, 2025, **from 0.63%** at June 30, 2025[21](index=21&type=chunk) - **Total non-performing assets decreased to $126.5 million** at September 30, 2025, **from $137.8 million** at June 30, 2025[23](index=23&type=chunk) - The allowance for credit losses on loans was **$285.6 million** (**1.87%** of total loans) at September 30, 2025, **covering 335.22%** of total non-performing loans[23](index=23&type=chunk) Net Charge-offs (Recoveries) by Region (in thousands) | Region | Q3 2025 Net Charge-offs (Recoveries) | Q2 2025 Net Charge-offs (Recoveries) | | :--- | :--- | :--- | | Texas | $1,045 | $416 | | Arkansas | $380 | $239 | | Centennial CFG | $0 | $181 | | Shore Premier Finance | $730 | $560 | | Florida | $760 | $(332) | | Alabama | $5 | $11 | | Total | $2,920 | $1,075 | [Capital Management and Subordinated Debt](index=5&type=section&id=Capital%20Management%20and%20Subordinated%20Debt) The company completed the payoff of $140.0 million in subordinated notes due 2030 and repurchased $20.0 million of notes due 2032, which negatively impacted the total risk-based capital ratio by 87 basis points - The company paid off **$140.0 million** of 5.50% Fixed-to-Floating Rate Subordinated Notes due 2030[24](index=24&type=chunk) - An additional **$20.0 million** of **$300.0 million** Fixed-to-Floating Rate Subordinated Notes due 2032 were repurchased[24](index=24&type=chunk) - These debt management activities **negatively impacted the total risk-based capital ratio by 87 basis points**[24](index=24&type=chunk) [Shareholders' Equity and Book Value](index=5&type=section&id=Shareholders'%20Equity%20and%20Book%20Value) Shareholders' equity increased by approximately $129.6 million in Q3 2025, primarily due to an increase in retained earnings and a decrease in accumulated other comprehensive loss, partially offset by stock repurchases, leading to a record high book value per common share - **Shareholders' equity increased by approximately $129.6 million to $4.21 billion** at September 30, 2025[25](index=25&type=chunk) - The increase was mainly driven by an **$84.2 million increase in retained earnings and a $52.8 million decrease in accumulated other comprehensive loss**, partially offset by **$9.9 million in stock repurchases**[25](index=25&type=chunk) - **Book value per common share reached a record $21.41** at September 30, 2025, **up from $20.71** at June 30, 2025. Tangible book value per common share (non-GAAP) also **increased to $14.13**[25](index=25&type=chunk) [Capital Allocation & Operations](index=6&type=section&id=Capital%20Allocation%20%26%20Operations) This section outlines the company's capital allocation strategies, including stock repurchases and dividends, alongside its branch network expansion initiatives [Stock Repurchases and Dividends](index=6&type=section&id=Stock%20Repurchases%20and%20Dividends) The company repurchased 350,000 shares of common stock in Q3 2025, a decrease from the prior quarter, resulting in a shareholder buyback yield of 0.18%, while paying a consistent cash dividend of $0.20 per share - The company repurchased **350,000 shares** of common stock in Q3 2025, **equating to a shareholder buyback yield of 0.18%**[27](index=27&type=chunk) - In Q2 2025, **1.0 million shares** were repurchased, with a **shareholder buyback yield of 0.49%**[27](index=27&type=chunk) - A **cash dividend of $0.20 per share** was paid in Q3 2025, consistent with the previous quarter[27](index=27&type=chunk) [Branch Network Expansion](index=6&type=section&id=Branch%20Network%20Expansion) Home BancShares expanded its branch network by opening a new branch in San Antonio, Texas, during Q3 2025, adding to its existing presence across multiple states - The company opened a **new branch in San Antonio, Texas**, during Q3 2025[29](index=29&type=chunk) - Current branch count by state: * Arkansas: **75 branches** * Florida: **78 branches** * Texas: **59 branches** * Alabama: **5 branches** * New York City: **1 branch** [Corporate Information & Disclosures](index=6&type=section&id=Corporate%20Information%20%26%20Disclosures) This section provides essential corporate information, including conference call details, company overview, non-GAAP measure explanations, and forward-looking statements [Conference Call Information](index=6&type=section&id=Conference%20Call%20Information) Management will host a conference call on October 16, 2025, to discuss the earnings, with participants encouraged to pre-register via webcast or live call links, or dial in directly - A **conference call to review earnings information will be held on Thursday, October 16, 2025, at 1:00 p.m. CT (2:00 p.m. ET)**[31](index=31&type=chunk) - Participants can **pre-register for the webcast or live call using provided links, or dial in directly**[31](index=31&type=chunk)[32](index=32&type=chunk) [About Home BancShares](index=6&type=section&id=About%20Home%20BancShares) Home BancShares, Inc. is an Arkansas-headquartered bank holding company, operating through its wholly-owned subsidiary, Centennial Bank, which offers a full range of commercial and retail banking services across multiple states, with its common stock traded on the NYSE under 'HOMB' - **Home BancShares, Inc. is a bank holding company headquartered in Conway, Arkansas, founded in 1998**[34](index=34&type=chunk) - Its **wholly-owned subsidiary, Centennial Bank, provides commercial and retail banking services to various clients**[34](index=34&type=chunk) - **Centennial Bank has branch locations in Arkansas, Florida, Texas, South Alabama, and New York City, and HOMB's common stock is traded on the NYSE**[34](index=34&type=chunk) [Non-GAAP Financial Measures Explanation](index=7&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) The press release includes non-GAAP financial measures, which management uses to provide supplemental information on performance by adjusting GAAP measures for tax benefits and significant non-recurring items, though these are not substitutes for GAAP results and may not be comparable to those of other companies - The press release utilizes **non-GAAP financial measures, such as adjusted net income, PPNR, and tangible book value, to provide supplemental information on the company's performance**[36](index=36&type=chunk) - **Management uses these non-GAAP measures to adjust for tax benefits and significant items not indicative of primary business operations, believing they offer a better understanding of operating results**[36](index=36&type=chunk) - **Non-GAAP disclosures should not replace GAAP results and may not be comparable to measures presented by other companies**[36](index=36&type=chunk) [Forward-Looking Statements](index=8&type=section&id=Forward-Looking%20Statements) This release contains forward-looking statements subject to inherent risks and uncertainties, with various factors, including economic conditions, credit quality, interest rates, regulatory changes, and technological risks, potentially causing actual results to differ materially from projections - The release includes **forward-looking statements regarding future plans, expectations, goals, and financial outlook, which are not guarantees of future events or results**[39](index=39&type=chunk) - These statements involve **inherent risks and uncertainties, with various factors potentially causing actual results to differ materially**[39](index=39&type=chunk) - Key risk factors include: * Economic conditions (inflation, interest rates, loan demand) * Credit quality and real estate values * Acquisition integration risks * Legislative and regulatory changes * Technological changes and cybersecurity risks * Impacts of natural disasters and public health crises [Investor Relations Contact](index=8&type=section&id=Investor%20Relations%20Contact) For further information, investors can contact Donna Townsell, Director of Investor Relations for Home BancShares, Inc - **Contact information for investor relations is provided: Donna Townsell, Director of Investor Relations, Home BancShares, Inc., (501) 328-4625**[40](index=40&type=chunk) [Detailed Financial Tables](index=9&type=section&id=Detailed%20Financial%20Tables) This section presents comprehensive financial tables, including balance sheets, income statements, selected financial data, net interest margin analysis, and non-GAAP reconciliations [Consolidated End of Period Balance Sheets](index=9&type=section&id=Consolidated%20End%20of%20Period%20Balance%20Sheets) The consolidated balance sheet provides a snapshot of the company's financial position at the end of each quarter, detailing assets, liabilities, and shareholders' equity, with key trends including a record high in loans receivable and an increase in shareholders' equity in Q3 2025 Consolidated End of Period Balance Sheets (in thousands) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | **ASSETS** | | | | | | | Cash and cash equivalents | $800,920 | $1,101,073 | $1,295,730 | $910,347 | $1,017,677 | | Total investment securities | $4,188,696 | $4,165,260 | $4,273,216 | $4,347,843 | $4,547,710 | | Loans receivable, net | $15,000,323 | $14,898,755 | $14,672,172 | $14,488,620 | $14,511,405 | | Total assets | $22,707,802 | $22,907,022 | $22,992,203 | $22,490,748 | $22,823,117 | | **LIABILITIES AND SHAREHOLDERS' EQUITY** | | | | | | | Total deposits | $17,327,696 | $17,488,432 | $17,541,491 | $17,146,297 | $16,705,710 | | Subordinated debentures | $279,093 | $438,957 | $439,102 | $439,246 | $439,394 | | Total liabilities | $18,492,838 | $18,821,706 | $18,949,648 | $18,529,723 | $18,863,328 | | Total shareholders' equity | $4,214,964 | $4,085,316 | $4,042,555 | $3,961,025 | $3,959,789 | [Consolidated Statements of Income](index=10&type=section&id=Consolidated%20Statements%20of%20Income) The consolidated statements of income detail the company's revenues and expenses, culminating in net income for the quarter and year-to-date periods, with Q3 2025 seeing a significant increase in net interest income and non-interest income, contributing to record net income Consolidated Statements of Income (in thousands) | Metric | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | 9 Months 2025 | 9 Months 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total interest income | $323,532 | $319,115 | $312,542 | $322,714 | $332,845 | $955,189 | $977,063 | | Total interest expense | $97,366 | $99,163 | $97,886 | $105,572 | $117,625 | $294,415 | $345,431 | | Net interest income | $226,166 | $219,952 | $214,656 | $217,142 | $215,220 | $660,774 | $631,632 | | Total credit loss expense | $3,506 | $3,000 | $0 | $16,700 | $18,870 | $6,506 | $31,370 | | Total non-interest income | $51,505 | $51,079 | $45,426 | $41,222 | $42,779 | $148,010 | $127,352 | | Total non-interest expense | $114,838 | $116,040 | $112,928 | $112,210 | $110,045 | $343,806 | $334,726 | | Income before income taxes | $159,327 | $151,991 | $147,154 | $129,454 | $129,084 | $458,472 | $392,888 | | Net income | $123,604 | $118,403 | $115,209 | $100,564 | $100,038 | $357,216 | $301,677 | [Selected Financial Information (Per Share, Performance, Ratios, Expenses)](index=11&type=section&id=Selected%20Financial%20Information%20(Per%20Share,%20Performance,%20Ratios,%20Expenses)) This section provides detailed selected financial information, including per share data, annualized performance metrics, efficiency ratios, and a breakdown of other operating expenses, highlighting the company's strong diluted EPS, ROA, ROE, and ROTCE, along with improving efficiency Per Share Data | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Diluted earnings per common share | $0.63 | $0.60 | $0.58 | $0.51 | $0.50 | | Book value per common share | $21.41 | $20.71 | $20.40 | $19.92 | $19.91 | | Tangible book value per common share (non-GAAP) | $14.13 | $13.44 | $13.15 | $12.68 | $12.67 | Annualized Performance Metrics | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Return on average assets (ROA) | 2.17% | 2.08% | 2.07% | 1.77% | 1.74% | | Return on average common equity (ROE) | 11.91% | 11.77% | 11.75% | 10.13% | 10.23% | | Return on average tangible common equity (ROTCE) (non-GAAP) | 18.28% | 18.26% | 18.39% | 15.94% | 16.26% | Balance Sheet Ratios and Asset Quality | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Total loans to total deposits | 88.22% | 86.80% | 85.24% | 86.11% | 88.74% | | Common equity to assets | 18.56% | 17.83% | 17.58% | 17.61% | 17.35% | | Non-performing loans to total loans | 0.56% | 0.63% | 0.60% | 0.67% | 0.68% | | Allowance for credit losses to total loans | 1.87% | 1.86% | 1.87% | 1.87% | 2.11% | | Allowance for credit losses for loans to non-performing loans | 335.22% | 292.72% | 312.27% | 278.99% | 309.16% | [Consolidated Net Interest Margin Analysis](index=14&type=section&id=Consolidated%20Net%20Interest%20Margin%20Analysis) The net interest margin analysis provides a detailed breakdown of interest income and expense components, illustrating the drivers of the company's net interest spread and margin, with Q3 2025 seeing an improvement compared to the previous quarter and year-to-date Net Interest Margin - Three Months Ended September 30, 2025 vs. June 30, 2025 (in thousands) | Metric | Sep 30, 2025 (Avg Balance) | Sep 30, 2025 (Income/Expense) | Sep 30, 2025 (Yield/Rate) | Jun 30, 2025 (Avg Balance) | Jun 30, 2025 (Income/Expense) | Jun 30, 2025 (Yield/Rate) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total interest-earning assets | $19,944,288 | $326,448 | 6.49% | $20,082,933 | $321,641 | 6.42% | | Total interest-bearing liabilities | $14,355,171 | $97,366 | 2.69% | $14,577,597 | $99,163 | 2.73% | | Net interest spread | | | 3.80% | | | 3.69% | | Net interest income and margin - FTE | | $229,082 | 4.56% | | $222,478 | 4.44% | Net Interest Margin - Nine Months Ended September 30, 2025 vs. September 30, 2024 (in thousands) | Metric | Sep 30, 2025 (Avg Balance) | Sep 30, 2025 (Income/Expense) | Sep 30, 2025 (Yield/Rate) | Sep 30, 2024 (Avg Balance) | Sep 30, 2024 (Income/Expense) | Sep 30, 2024 (Yield/Rate) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total interest-earning assets | $19,951,520 | $963,165 | 6.45% | $20,155,315 | $983,199 | 6.52% | | Total interest-bearing liabilities | $14,444,061 | $294,415 | 2.73% | $14,717,454 | $345,431 | 3.14% | | Net interest spread | | | 3.72% | | | 3.38% | | Net interest income and margin - FTE | | $668,750 | 4.48% | | $637,768 | 4.23% | [Non-GAAP Reconciliations](index=16&type=section&id=Non-GAAP%20Reconciliations) This section provides detailed reconciliations of non-GAAP financial measures to their most directly comparable GAAP measures, including adjustments for earnings, return on average assets, return on average common equity, efficiency ratio, PPNR, and tangible book value, offering transparency into the calculation of these adjusted metrics Earnings, As Adjusted (in thousands, except per share data) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | GAAP net income available to common shareholders | $123,604 | $118,403 | $115,209 | $100,564 | $100,038 | | Total adjustments after-tax | $(3,922) | $(3,770) | $(3,274) | $(737) | $(1,044) | | Earnings, as adjusted | $119,682 | $114,633 | $111,935 | $99,827 | $98,994 | | GAAP diluted earnings per share | $0.63 | $0.60 | $0.58 | $0.51 | $0.50 | | Diluted earnings per common share, as adjusted | $0.61 | $0.58 | $0.56 | $0.50 | $0.50 | Tangible Book Value Per Common Share | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Book value per common share | $21.41 | $20.71 | $20.40 | $19.92 | $19.91 | | Tangible book value per common share | $14.13 | $13.44 | $13.15 | $12.68 | $12.67 | Tangible Common Equity to Tangible Assets | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Equity to assets | 18.56% | 17.83% | 17.58% | 17.61% | 17.35% | | Tangible common equity to tangible assets | 13.08% | 12.35% | 12.09% | 11.98% | 11.78% | [Shareholder Buyback Yield Calculation](index=20&type=section&id=Shareholder%20Buyback%20Yield%20Calculation) This table details the calculation of the shareholder buyback yield, showing the number of shares repurchased, average price, and total cost relative to market capitalization, with the yield decreasing in Q3 2025 compared to the prior quarter Shareholder Buyback Yield (in thousands) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Shareholder buyback yield | 0.18% | 0.49% | 0.53% | 0.05% | 0.56% | | Shares repurchased | 350 | 1,000 | 1,000 | 96 | 1,000 | | Total share repurchase cost | $10,011 | $27,448 | $29,785 | $2,454 | $26,965 | | Market capitalization beginning of period | $5,613,422 | $5,603,284 | $5,628,361 | $5,387,632 | $4,785,914 |