BancPlus Corp.
11/09/2026 | Press release | Distributed by Public on 11/09/2026 13:36
Quarterly Report for Quarter Ending September 30, 2026 (Form 10-Q)
Management's Discussion and Analysis of Financial Condition and Results of Operations
Unless otherwise indicated, references in this report to "we", "us", "our company", "the Company", or "BancPlus" refer to BancPlus Corporation and its subsidiaries, on a consolidated basis. All references to "BankPlus" or "the Bank" refer to BankPlus, our wholly-owned subsidiary.
The following discussion and analysis of BancPlus' financial condition and results of operations should be read in conjunction with the unaudited interim consolidated financial statements and related notes contained in Item 1 of this Quarterly Report on Form 10-Q.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains estimates, predictions, opinions, projections and other "forward-looking statements" as that phrase is defined in the Private Securities Litigation Reform Act of 1995 and within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, about BancPlus. Such statements include, without limitation, references to the Company's predictions or expectations of future business or financial performance as well as its goals and objectives for future operations, financial and business trends, business prospects, and management's outlook or expectations for earnings, revenues, expenses, capital levels, liquidity levels, asset quality or other future financial or business performance, strategies or expectations, and are subject to risks and uncertainties. These statements often, but not always, are preceded by, followed by or otherwise include the words "believe," "expect," "anticipate," "intend," "estimate," "continue," "seek," "plan," "can," "should," "could," "would," "will," "to be," "predict," "potential," "may," "likely," "will likely result," "target," "project," "goal," "strive," "aim," and "outlook" or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts and are not guarantees of future performance, and are based on current expectations, estimates and projections about our industry based on certain assumptions and beliefs of the Company's management, many of which, by their nature, are inherently uncertain and beyond the Company's control. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.
There are or will be important risk factors that could cause actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following:
•
our ability to adequately measure and limit our credit risk;
•
factors that can impact the performance of our loan portfolio, including real estate values and liquidity in our primary market areas, the financial health of our commercial borrowers and the success of construction projects that we finance, including any loans acquired in acquisition transactions;
•
our ability to prudently manage our growth, maintain our historical rate of growth in light of associated risks, and execute our strategy;
•
the composition of our management team and our ability to attract and retain key personnel;
•
geographic concentration of our business within Mississippi, Alabama, Louisiana, and Florida;
•
our ability to attract and retain customers, particularly in light of increased competition in the financial services industry, including from regional and national institutions, community banks, credit unions, non-bank financial service providers, financial technology ("fintech") companies, private credit funds, money market and other mutual funds, and other financial institutions;
•
competitive pressures from fintech companies, digital-only banks, large technology companies and other technology-driven providers of digital banking, payment, lending and deposit products and services, including real-time and instant payment systems, digital wallets, peer-to-peer payment platforms, stablecoins and other digital assets, and online or algorithmic lending platforms, some of which may be subject to less extensive regulation than we are, any of which could result in the loss of customers, deposits, loan volume and fee income (including debit card interchange and deposit service charge income), the disintermediation of traditional banking relationships, increased deposit costs, a loss of market share and compression of our net interest margin;
•
failure of our risk management framework, disclosure controls and procedures, and internal controls over financial reporting;
•
our ability to identify, prevent, detect, respond to and recover from cybersecurity threats and incidents, systems failures, unauthorized access, ransomware and other malware, phishing and social engineering, denial-of-service attacks, account takeover and credential stuffing, insider threats, and cyber-crime and other threats to data security or interruptions involving our information technology and telecommunications systems or those of our third-party service providers, any of which could disrupt our operations and result in the unauthorized disclosure, misuse or loss of confidential customer, employee or proprietary information, financial losses (including fraud losses and remediation, customer notification, litigation and legal costs), increased cybersecurity and insurance costs, damage to our reputation, and regulatory investigations, fines or enforcement actions;
•
the costs of complying with evolving cybersecurity, data privacy and incident notification laws, rules and regulatory expectations, including the SEC's cybersecurity risk management, strategy, governance and incident disclosure rules, the federal banking agencies' computer-security incident notification rule, interagency guidance on third-party risk management, and state consumer data privacy and data security laws, as well as the potential that our insurance coverage may be insufficient to cover all losses arising from a cyber incident;
•
risks and costs related to the development and use of artificial intelligence and other emerging technologies by us, our third-party service providers, our competitors and threat actors, including related legal, regulatory, model risk and reputational risks;
•
our ability to keep pace with technological change and to develop, implement and market new digital products and services in a timely and cost-effective manner, and the risk that new technologies may be more difficult, costly or less effective than anticipated;
•
difficult business, market or political conditions and unfavorable economic trends in the United States generally, and particularly in the markets in which we operate and in which our loans are concentrated, including inflation, declines in housing markets, an increase in unemployment levels and slowdowns in economic growth;
•
the impact of any future U.S. federal government shutdown and uncertainty regarding the U.S. federal government's debt limit and credit rating;
•
the soundness of other financial institutions and the impacts related to or resulting from bank failures and other economic and industry volatility, including potential increased regulatory requirements and costs and potential impacts to macroeconomic conditions;
•
our ability to identify potential candidates for, consummate, and achieve synergies resulting from, potential future acquisitions;
•
changes in the laws, rules, regulations, interpretations, policies or stimulus programs relating to financial institutions, accounting, tax, trade and tariffs, monetary and fiscal matters, and the uncertainty of the short- and long-term impacts of such changes;
•
compliance with governmental and regulatory requirements, including relating to banking, consumer protection, securities and tax matters;
•
our ability to satisfy the requirements of the ECIP, including the lending thresholds required to exercise the option to repurchase our Series ECIP Preferred Stock, our continued qualification as a CDFI, and changes in the dividend rate on such preferred stock;
•
our ability to raise capital due to the lack of an organized public trading market for BancPlus common stock;
•
operational risks associated with our business;
•
volatility and direction of market interest rates;
•
our ability to maintain important deposit customer relationships and our reputation or otherwise avoid liquidity risks;
•
the obligations associated with being a public reporting company;
•
the commencement and outcome of litigation and other legal proceedings against us or to which we may become subject;
•
negative publicity and other reputational risks, including the speed and scale at which information can spread through social media and other digital channels, which could amplify adverse customer or market reactions;
•
changes in accounting policies, rules and practices, including those issued by the FASB;
•
natural disasters, climate change, adverse weather, public health crises, acts of terrorism, outbreaks of hostilities, civil unrest, wars or other international or domestic calamities, and other matters beyond our control; and
•
other factors that are discussed in the sections entitled "Item 1A. Risk Factors" and "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2025 and the sections entitled "Item 1A. Risk Factors" and "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations" in this Quarterly Report on Form 10-Q for the quarter ended September 30, 2026.
New factors emerge from time to time, and it is not possible for us to predict which will arise. The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in our Annual Report on Form 10-K for the year ended December 31, 2025 and our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2026 and June 30, 2026. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to publicly update or revise any forward-looking statement, whether written or oral, and whether as a result of new information, future developments or otherwise, except as specifically required by law.
Overview
BancPlus is a bank holding company headquartered in Ridgeland, Mississippi. Our wholly-owned bank subsidiary, BankPlus, offers a full suite of products and services to a broad spectrum of customers, including individuals, businesses and public entities. As of September 30, 2026, we operated 73 branch offices across Mississippi, Alabama, Louisiana, and Florida. Our franchise is built on
a community banking approach focused on personalized, relationship-driven service combined with local market management and expertise. We have one reportable segment.
BancPlus' business strategy is to provide exceptional community banking services and financial solutions within its markets, which enables us to fulfill our core purpose of enriching lives and building stronger communities. We believe our team of local, experienced and relationship-focused bankers, along with strong brand recognition in our communities, differentiate us from our competitors. As a result, we have a granular, stable deposit mix and a diversified loan portfolio. As of September 30, 2026, we had $7.26 billion of total deposits, and our deposit base consisted of 91.9% core deposits, defined as total deposits less brokered deposits and time deposits greater than $250,000, with a total deposit cost of 2.12% for the year to date period. Our loan portfolio was comprised of 69.4% commercial loans and 30.6% consumer loans for the same period. BancPlus currently holds meaningful market share in a number of attractive markets in Mississippi, including the number two position based on deposits in the Jackson, Mississippi metropolitan statistical area as of June 30, 2026, and we believe we are well-positioned for future growth.
Effective May 18, 2026, the Bank became a member bank of the Federal Reserve System. As a result, the Board of Governors of the Federal Reserve System ("Federal Reserve"), acting through the Federal Reserve Bank of St. Louis, became the Bank's primary federal regulator, succeeding the Federal Deposit Insurance Corporation ("FDIC"). The Mississippi Department of Banking and Consumer Finance ("MDBCF") remains the Bank's primary state regulator, and the Bank's deposits remain insured by the FDIC up to applicable limits. Laws and regulations that apply to state member banks are broadly consistent with those that apply to state non-member banks, with certain exceptions. For example, as a state member bank, the Bank may not declare or pay a dividend: (i) if the total of all dividends declared during the calendar year, including the proposed dividend, exceeds the sum of the Bank's net income during the current calendar year and the retained net income of the prior two calendar years; or (ii) that would exceed its undivided profits; in either case, unless the dividend has been approved by the Federal Reserve.
September 30, 2026 Highlights
•
Net income for the nine months ended September 30, 2026 was $75.9 million, compared with $61.3 million for the same period of 2025
•
Diluted earnings per share for the nine months ended September 30, 2026 were $6.35, compared with $4.98 for the same period of 2025
•
Net interest income was $220.0 million for the nine months ended September 30, 2026, compared with $197.3 million for the same period of 2025
•
Total loans held for investment were $6.38 billion at September 30, 2026, compared with $6.29 billion at December 31, 2025
Recent Legislative and Regulatory Developments
On April 23, 2026, the federal banking agencies adopted a final rule to revise the CBLR framework, including by lowering the minimum CBLR requirement from 9.0% to 8.0% for purposes of determining whether a qualifying banking organization is deemed to satisfy generally applicable capital requirements and is considered "well capitalized." The final rule was effective July 1, 2026.
On March 19, 2026, the federal banking agencies issued several other proposals to revise the U.S. regulatory capital framework. The proposals would, among other things, eliminate the requirement for all banking organizations to deduct mortgage servicing assets from common equity Tier 1 capital, and, for banking organizations subject to risk-based capital requirements, subject such assets to a uniform risk-weighting treatment instead. The proposals would also modify aspects of the standardized approach to risk based capital, including by making the risk weights for certain residential mortgage exposures more risk sensitive and decreasing the risk weights of corporate exposures, which could affect certain aspects of the Company's regulatory capital calculations if the Company ceases to meet the criteria required to be a qualifying banking organization under the CBLR framework.
On June 25, 2026, the FDIC issued a proposal to revise deposit insurance assessment thresholds, rate schedules, and adjustments. Among other changes, the proposal would reduce initial base assessment rate schedules applicable to small institutions, including the Bank, by 2 basis points. The Company is continuing to evaluate the proposal and its potential impact on the Bank.
On July 11, 2026, the 21st Century ROAD to Housing Act (the "Housing Act") became law. The Housing Act is generally designed to incentivize new home construction, including through changes to certain banking laws to which the Bank is subject. Among other changes, Sections 901 and 902 of the Housing Act expanded the types of custodial deposits and amounts of reciprocal deposits, respectively, that may be excluded from treatment as brokered deposits. The Company is continuing to evaluate the Housing Act and its potential impacts on us.
Results of Operations
The following discussion of BancPlus' results of operations compares the three and nine months ended September 30, 2026 to the three and nine months ended September 30, 2025. The results of operations for the three and nine months ended September 30,
2026 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2026 or for any other period.
Net Income
Net income for the three months ended September 30, 2026 and 2025 was $26.9 million and $17.6 million, respectively. BancPlus' annualized return on average assets for the three months ended September 30, 2026 and 2025 was 1.28% and 0.89%, respectively. BancPlus' annualized return on average equity for the three months ended September 30, 2026 and 2025 was 12.07% and 8.42%, respectively.
Net income for the nine months ended September 30, 2026 and 2025 was $75.9 million and $61.3 million, respectively. BancPlus' annualized return on average assets for the nine months ended September 30, 2026 and 2025 was 1.23% and 1.04%, respectively. BancPlus' annualized return on average equity for the nine months ended September 30, 2026 and 2025 was 11.60% and 10.14%, respectively.
The increase in net income, return on average equity, and return on average assets for the three and nine months ended September 30, 2026 compared to the same period of 2025 was primarily the result of increased net interest income in the current period.
Net Interest Income
Net interest income represents interest income less interest expense. BancPlus generates interest income from interest, dividends and fees received on interest-earning assets, including loans and investment securities. BancPlus incurs interest expense from interest paid on interest-bearing liabilities, including interest-bearing deposits, borrowings and other forms of indebtedness. Net interest income typically is the most significant contributor to BancPlus' net income. To evaluate net interest income, BancPlus measures and monitors: (i) yields on its loans and other interest-earning assets; (ii) the costs of its deposits and other funding sources; (iii) its net interest spread; and (iv) its net interest margin. Net interest spread is the difference between average rates earned on interest-earning assets and rates paid on interest-bearing liabilities. Net interest margin is calculated as the annualized net interest income divided by average interest-earning assets. Because noninterest-bearing sources of funds, such as noninterest-bearing deposits and shareholders' equity, also fund interest-earning assets, net interest margin includes the benefit of these noninterest-bearing sources.
Changes in market interest rates and interest BancPlus earns on interest-earning assets or pays on interest-bearing liabilities, as well as the volume and types of interest-earning assets, interest-bearing and noninterest-bearing liabilities and shareholders' equity, usually have the largest impact on periodic changes in its net interest spread, net interest margin and net interest income. BancPlus measures net interest income before and after the provision for credit losses that BancPlus maintains.
For the three months ended September 30, 2026, interest income was $116.2 million, an increase of $7.1 million, or 6.5%, compared to interest income of $109.1 million for the three months ended September 30, 2025. The increase in interest income for the three months ended September 30, 2026 compared to the same period of 2025 was primarily the result of an increase in the average balance of loans and taxable securities as well as an increase in the yield on taxable securities.
For the nine months ended September 30, 2026, interest income was $339.2 million, an increase of $17.5 million, or 5.5%, compared to interest income of $321.6 million for the nine months ended September 30, 2025. The increase in interest income for the nine months ended September 30, 2026 compared to the same period of 2025 was primarily the result of an increase in the average balance of loans and taxable securities as well as an increase in the yield on taxable securities.
For the three months ended September 30, 2026, interest expense was $40.9 million, an increase of $587,000, or 1.5%, compared to interest expense of $40.3 million for the three months ended September 30, 2025. The increase in interest expense for the three months ended September 30, 2026 compared to the same period of 2025 was primarily the result of an increase in the average balance of deposits in the current period partially offset by lower deposit cost and a decrease in the average balance of Federal Home Loan Bank ("FHLB") and subordinated debentures balances compared to the same period of 2025.
For the nine months ended September 30, 2026, interest expense was $119.1 million, a decrease of $5.2 million, or 4.2%, compared to interest expense of $124.3 million for the nine months ended September 30, 2025. The decrease in interest expense for the nine months ended September 30, 2026 compared to the same period of 2025 was primarily the result of a decrease in other borrowings and a decrease in the average balance of FHLB advances and subordinated debentures compared to the same period of 2025.
For the three months ended September 30, 2026, net interest income was $75.4 million, an increase of $6.5 million, or 9.5%, compared to net interest income of $68.8 million for the three months ended September 30, 2025. The increase in net interest income for the three months ended September 30, 2026 compared to the same period of 2025 was primarily the result of an increase in deposits, interest and fees on loans, and in increase in the rate on taxable securities compared to the same period of 2025.
For the nine months ended September 30, 2026, net interest income was $220.0 million, an increase of $22.7 million, or 11.5%, compared to net interest income of $197.3 million for the nine months ended September 30, 2025. The increase in net interest income for the nine months ended September 30, 2026 compared to the same period of 2025 was primarily the result of an increase in deposits, interest and fees on loans, and in increase in the rate on taxable securities compared to the same period of 2025.
Net interest margin for the three months ended September 30, 2026 increased 11 basis points to 3.80% from 3.69% for the same period of 2025, primarily as a result of higher interest rates and average balances on investment securities and higher average balances on loans as well as lower deposit costs and reductions in FHLB and subordinated debentures balances.
Net interest margin for the nine months ended September 30, 2026 increased 22 basis points to 3.77% from 3.55% for the same period of 2025, primarily as a result of higher interest rates and average balances on investment securities and higher average balances on loans as well as lower deposit costs and reductions in FHLB and subordinated debentures balances.
Our year-to-date average interest-earning assets at September 30, 2026 increased $0.37 billion, or 5.0%, to $7.81 billion from $7.44 billion at September 30, 2025. BancPlus' average interest-bearing liabilities at September 30, 2026 increased $0.34 billion, or 6.0%, to $6.01 billion from $5.67 billion at September 30, 2025. These increases in BancPlus' average interest-earning assets and interest-bearing liabilities were primarily due to increases in average balances of loans and investment securities and deposit growth. The ratio of BancPlus' average interest-earning assets to average interest-bearing liabilities was 130.0% at September 30, 2026 and 131.1% at September 30, 2025.
BancPlus' average interest-earning assets produced a tax-equivalent yield of 5.85% and 5.81% for the three and nine months ended September 30, 2026, respectively, compared to 5.85% and 5.78% for the three and nine months ended September 30, 2025, respectively. The average rate paid on interest-bearing liabilities was 2.67% and 2.65% for the three and nine months ended September 30, 2026, respectively, compared to 2.84% and 2.93% for the three and nine months ended September 30, 2025, respectively. The year-over-year changes in yields reflect a favorable shift in the interest rate environment as compared to the same period of 2025 as well as loan and deposit growth and a reduction in outstanding FHLB and subordinated debentures balances.
Average Balances and Yields
The following tables show, for the three and nine months ended September 30, 2026 and 2025, the average balances of each principal category of BancPlus' assets, liabilities and shareholders' equity, and an analysis of net interest income. The average balances are principally daily averages and, for loans, include both performing and nonperforming balances. These tables are presented on a tax-equivalent basis, if applicable.
|
Three Months Ended September 30, |
||||||||||||||||||||||||
|
2026 |
2025 |
|||||||||||||||||||||||
|
(Dollars in thousands) |
Average |
Interest & |
Yield / |
Average |
Interest & |
Yield / |
||||||||||||||||||
|
ASSETS: |
||||||||||||||||||||||||
|
Interest earning assets: |
||||||||||||||||||||||||
|
Cash investments: |
||||||||||||||||||||||||
|
Interest-bearing cash deposits |
$ |
247,044 |
$ |
2,320 |
3.73 |
% |
$ |
203,022 |
$ |
2,272 |
4.44 |
% |
||||||||||||
|
Federal funds sold |
- |
33 |
- |
% |
- |
- |
- |
% |
||||||||||||||||
|
247,044 |
2,353 |
3.78 |
% |
203,022 |
2,272 |
4.44 |
% |
|||||||||||||||||
|
Investment securities: |
||||||||||||||||||||||||
|
Taxable investment securities |
1,156,609 |
12,515 |
4.29 |
% |
950,993 |
8,667 |
3.62 |
% |
||||||||||||||||
|
Tax-exempt investment securities |
42,119 |
287 |
2.70 |
% |
45,710 |
300 |
2.61 |
% |
||||||||||||||||
|
Total securities |
1,198,728 |
12,802 |
4.24 |
% |
996,703 |
8,967 |
3.57 |
% |
||||||||||||||||
|
Loans (2) |
6,409,011 |
100,724 |
6.24 |
% |
6,183,739 |
97,691 |
6.27 |
% |
||||||||||||||||
|
FHLB stock |
24,100 |
339 |
5.58 |
% |
11,882 |
177 |
5.90 |
% |
||||||||||||||||
|
Total interest earning assets |
7,878,883 |
116,218 |
5.85 |
% |
7,395,346 |
109,107 |
5.85 |
% |
||||||||||||||||
|
Noninterest earning assets |
455,988 |
444,206 |
||||||||||||||||||||||
|
Total assets |
$ |
8,334,871 |
$ |
7,839,552 |
||||||||||||||||||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY: |
||||||||||||||||||||||||
|
Interest-bearing liabilities: |
||||||||||||||||||||||||
|
Interest-bearing transaction deposits |
$ |
1,622,447 |
$ |
7,996 |
1.96 |
% |
$ |
1,354,456 |
$ |
6,231 |
1.83 |
% |
||||||||||||
|
Savings and money market deposits |
2,719,922 |
17,468 |
2.55 |
% |
2,299,633 |
14,983 |
2.58 |
% |
||||||||||||||||
|
Time deposits |
1,630,161 |
13,952 |
3.40 |
% |
1,745,562 |
16,016 |
3.64 |
% |
||||||||||||||||
|
Federal funds purchased |
3 |
- |
- |
% |
- |
- |
- |
% |
||||||||||||||||
|
FHLB advances |
23 |
- |
- |
% |
115,798 |
1,235 |
4.23 |
% |
||||||||||||||||
|
Other borrowings |
36,297 |
581 |
6.35 |
% |
29,833 |
631 |
8.39 |
% |
||||||||||||||||
|
Subordinated debentures |
53,815 |
854 |
6.30 |
% |
74,662 |
1,168 |
6.21 |
% |
||||||||||||||||
|
Total interest-bearing liabilities |
6,062,668 |
40,851 |
2.67 |
% |
5,619,944 |
40,264 |
2.84 |
% |
||||||||||||||||
|
Noninterest-bearing liabilities: |
||||||||||||||||||||||||
|
Noninterest-bearing transaction deposits |
1,295,908 |
1,314,166 |
||||||||||||||||||||||
|
Other noninterest-bearing liabilities |
93,567 |
77,696 |
||||||||||||||||||||||
|
Total noninterest-bearing liabilities |
1,389,475 |
1,391,862 |
||||||||||||||||||||||
|
Shareholders' equity (3) |
882,728 |
827,746 |
||||||||||||||||||||||
|
Total liabilities and shareholders' equity |
$ |
8,334,871 |
$ |
7,839,552 |
||||||||||||||||||||
|
Net interest income/net interest margin (4) |
75,367 |
3.80 |
% |
68,843 |
3.69 |
% |
||||||||||||||||||
|
Net interest spread (5) |
3.18 |
% |
3.01 |
% |
||||||||||||||||||||
|
Taxable equivalent adjustment: |
||||||||||||||||||||||||
|
Tax-exempt investment securities (6) |
93 |
97 |
||||||||||||||||||||||
|
Net interest income/net interest margin (4) |
$ |
75,460 |
3.80 |
% |
$ |
68,940 |
3.70 |
% |
||||||||||||||||
(1)
Yields and rates are annualized.
(2)
Average loan balances include nonaccrual loans.
(3)
Includes BancPlus' Employee Stock Ownership Plan ("ESOP") owned shares.
(4)
Net interest margin during the periods presented represents: (i) the difference between interest income on interest-earning assets and the interest expense on interest-bearing liabilities, divided by (ii) average interest-earning assets for the period.
(5)
Net interest spread is the yield on BancPlus' total interest-earning assets less the yield on its interest-bearing liabilities.
(6)
Taxable equivalent net interest income and net interest margin are non-GAAP financial measures. Interest income and average rates for tax exempt securities are presented on a tax-equivalent basis, assuming a combined federal and state income tax rate of 25% for 2026 and 2025. The most directly comparable GAAP measures are net interest income and net interest margin, which are reconciled to the tax-equivalent measures in the table above.
|
Nine Months Ended September 30, |
||||||||||||||||||||||||
|
2026 |
2025 |
|||||||||||||||||||||||
|
(Dollars in thousands) |
Average |
Interest & |
Yield / |
Average |
Interest & |
Yield / |
||||||||||||||||||
|
ASSETS: |
||||||||||||||||||||||||
|
Interest earning assets: |
||||||||||||||||||||||||
|
Cash investments: |
||||||||||||||||||||||||
|
Interest-bearing cash deposits |
$ |
278,534 |
$ |
7,772 |
3.73 |
% |
$ |
297,492 |
$ |
10,201 |
4.58 |
% |
||||||||||||
|
Federal funds sold |
- |
33 |
- |
% |
- |
- |
- |
% |
||||||||||||||||
|
278,534 |
7,805 |
3.75 |
% |
297,492 |
10,201 |
4.58 |
% |
|||||||||||||||||
|
Investment securities: |
||||||||||||||||||||||||
|
Taxable investment securities |
1,112,091 |
35,254 |
4.24 |
% |
935,232 |
24,380 |
3.49 |
% |
||||||||||||||||
|
Tax-exempt investment securities |
43,589 |
888 |
2.72 |
% |
46,574 |
919 |
2.64 |
% |
||||||||||||||||
|
Total securities |
1,155,680 |
36,142 |
4.18 |
% |
981,806 |
25,299 |
3.45 |
% |
||||||||||||||||
|
Loans (2) |
6,360,739 |
294,536 |
6.19 |
% |
6,143,556 |
285,511 |
6.21 |
% |
||||||||||||||||
|
FHLB stock |
16,227 |
667 |
5.50 |
% |
14,351 |
602 |
5.61 |
% |
||||||||||||||||
|
Total interest earning assets |
7,811,180 |
339,150 |
5.81 |
% |
7,437,205 |
321,613 |
5.78 |
% |
||||||||||||||||
|
Noninterest earning assets |
449,245 |
448,686 |
||||||||||||||||||||||
|
Total assets |
$ |
8,260,425 |
$ |
7,885,891 |
||||||||||||||||||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY: |
||||||||||||||||||||||||
|
Interest-bearing liabilities: |
||||||||||||||||||||||||
|
Interest-bearing transaction deposits |
$ |
1,627,880 |
$ |
23,562 |
1.94 |
% |
$ |
1,387,587 |
$ |
18,718 |
1.80 |
% |
||||||||||||
|
Savings and money market deposits |
2,560,586 |
46,918 |
2.45 |
% |
2,240,634 |
43,173 |
2.58 |
% |
||||||||||||||||
|
Time deposits |
1,700,841 |
43,466 |
3.42 |
% |
1,768,700 |
50,846 |
3.84 |
% |
||||||||||||||||
|
Federal funds purchased |
1 |
- |
- |
% |
2 |
- |
- |
% |
||||||||||||||||
|
FHLB advances |
26,950 |
857 |
4.25 |
% |
153,870 |
4,983 |
4.33 |
% |
||||||||||||||||
|
Other borrowings |
37,287 |
1,763 |
6.32 |
% |
12,029 |
631 |
7.01 |
% |
||||||||||||||||
|
Subordinated debentures |
53,756 |
2,548 |
6.34 |
% |
110,680 |
5,952 |
7.19 |
% |
||||||||||||||||
|
Total interest-bearing liabilities |
6,007,301 |
119,114 |
2.65 |
% |
5,673,502 |
124,303 |
2.93 |
% |
||||||||||||||||
|
Noninterest-bearing liabilities: |
||||||||||||||||||||||||
|
Noninterest-bearing transaction deposits |
1,288,874 |
1,323,984 |
||||||||||||||||||||||
|
Other noninterest-bearing liabilities |
89,605 |
80,045 |
||||||||||||||||||||||
|
Total noninterest-bearing liabilities |
1,378,479 |
1,404,029 |
||||||||||||||||||||||
|
Shareholders' equity (3) |
874,645 |
808,360 |
||||||||||||||||||||||
|
Total liabilities and shareholders' equity |
$ |
8,260,425 |
$ |
7,885,891 |
||||||||||||||||||||
|
Net interest income/net interest margin (4) |
220,036 |
3.77 |
% |
197,310 |
3.55 |
% |
||||||||||||||||||
|
Net interest spread (5) |
3.15 |
% |
2.77 |
% |
||||||||||||||||||||
|
Taxable equivalent adjustment: |
||||||||||||||||||||||||
|
Tax-exempt investment securities (6) |
287 |
297 |
||||||||||||||||||||||
|
Net interest income/net interest margin (4) |
$ |
220,323 |
3.77 |
% |
$ |
197,607 |
3.55 |
% |
||||||||||||||||
(1)
Yields and rates are annualized.
(2)
Average loan balances include nonaccrual loans.
(3)
Includes BancPlus' Employee Stock Ownership Plan ("ESOP") owned shares.
(4)
Net interest margin during the periods presented represents: (i) the difference between interest income on interest-earning assets and the interest expense on interest-bearing liabilities, divided by (ii) average interest-earning assets for the period.
(5)
Net interest spread is the yield on BancPlus' total interest-earning assets less the yield on its interest-bearing liabilities.
(6)
Taxable equivalent net interest income and net interest margin are non-GAAP financial measures. Interest income and average rates for tax exempt securities are presented on a tax-equivalent basis, assuming a combined federal and state income tax rate of 25% for 2026 and 2025. The most directly comparable GAAP measures are net interest income and net interest margin, which are reconciled to the tax-equivalent measures in the table above.
Rate/Volume Analysis
Increases and decreases in interest income and interest expense result from changes in average balances (volume) of interest-earning assets and interest-bearing liabilities, as well as changes in average interest rates. The following tables present the dollar amount of changes in interest income and interest expense for major components of interest-earning assets and interest-bearing liabilities. It distinguishes between the changes related to the outstanding balances and those due to changes in interest rates. The change in interest attributable to rate has been determined by applying the change in rate between periods to average balances outstanding in the earlier period. The change in interest due to volume has been determined by applying the rate from the later period to the change
in average balances outstanding between periods. For purposes of these tables, changes attributable to both rate and volume that cannot be segregated, including the difference in day count, have been allocated to rate.
|
Three Months Ended September 30, 2026 Compared with Three Months Ended September 30, 2025 |
||||||||||||
|
Change Due To: |
Interest |
|||||||||||
|
(Dollars in thousands) |
Volume |
Rate |
Variance |
|||||||||
|
Interest earning assets: |
||||||||||||
|
Cash investments |
$ |
493 |
$ |
(445 |
) |
$ |
48 |
|||||
|
Federal funds sold |
- |
33 |
33 |
|||||||||
|
Investment securities: |
||||||||||||
|
Taxable investment securities |
1,873 |
1,975 |
3,848 |
|||||||||
|
Tax-exempt investment securities |
(24 |
) |
11 |
(13 |
) |
|||||||
|
Total securities |
1,849 |
1,986 |
3,835 |
|||||||||
|
Loans, net |
3,560 |
(527 |
) |
3,033 |
||||||||
|
FHLB stock |
182 |
(20 |
) |
162 |
||||||||
|
Total interest earning assets |
$ |
6,084 |
$ |
1,027 |
$ |
7,111 |
||||||
|
Interest-bearing liabilities: |
||||||||||||
|
Interest-bearing transaction deposits |
$ |
1,233 |
$ |
531 |
1,764 |
|||||||
|
Savings and money market deposits |
2,738 |
(252 |
) |
2,486 |
||||||||
|
Time deposits |
(1,059 |
) |
(1,005 |
) |
(2,064 |
) |
||||||
|
FHLB advances |
(1,235 |
) |
- |
(1,235 |
) |
|||||||
|
Other borrowings |
136 |
(185 |
) |
(49 |
) |
|||||||
|
Subordinated debentures |
(326 |
) |
11 |
(315 |
) |
|||||||
|
Total interest-bearing liabilities |
$ |
1,487 |
$ |
(900 |
) |
$ |
587 |
|||||
|
Net interest income |
$ |
4,597 |
$ |
1,927 |
$ |
6,524 |
||||||
|
Nine Months Ended September 30, 2026 Compared with Nine Months Ended September 30, 2025 |
||||||||||||
|
Change Due To: |
Interest |
|||||||||||
|
(Dollars in thousands) |
Volume |
Rate |
Variance |
|||||||||
|
Interest earning assets: |
||||||||||||
|
Cash investments |
$ |
(651 |
) |
$ |
(1,779 |
) |
$ |
(2,430 |
) |
|||
|
Federal funds sold |
- |
33 |
33 |
|||||||||
|
Investment securities: |
||||||||||||
|
Taxable investment securities |
4,610 |
6,264 |
10,874 |
|||||||||
|
Tax-exempt investment securities |
(59 |
) |
28 |
(31 |
) |
|||||||
|
Total securities |
4,551 |
6,292 |
10,843 |
|||||||||
|
Loans, net |
10,094 |
(1,069 |
) |
9,025 |
||||||||
|
FHLB stock |
79 |
(13 |
) |
66 |
||||||||
|
Total interest earning assets |
$ |
14,073 |
$ |
3,464 |
$ |
17,537 |
||||||
|
Interest-bearing liabilities: |
||||||||||||
|
Interest-bearing transaction deposits |
$ |
3,241 |
$ |
1,602 |
4,843 |
|||||||
|
Savings and money market deposits |
6,165 |
(2,419 |
) |
3,746 |
||||||||
|
Time deposits |
(1,951 |
) |
(5,429 |
) |
(7,380 |
) |
||||||
|
FHLB advances |
(4,110 |
) |
(16 |
) |
(4,126 |
) |
||||||
|
Other borrowings |
1,326 |
(194 |
) |
1,132 |
||||||||
|
Subordinated debentures |
(3,061 |
) |
(343 |
) |
(3,404 |
) |
||||||
|
Total interest-bearing liabilities |
$ |
1,610 |
$ |
(6,799 |
) |
$ |
(5,189 |
) |
||||
|
Net interest income |
$ |
12,463 |
$ |
10,263 |
$ |
22,726 |
||||||
Provision for Credit Losses
The provision for credit losses is the amount of expense that, based on BancPlus' judgment, is required to maintain the allowance for credit losses ("ACL") at an adequate level to absorb probable losses inherent in the loan portfolio at the balance sheet date and that, in management's judgment, is appropriate under relevant accounting guidance. The determination of the provision for credit losses is complex and involves a high degree of judgment and subjectivity.
For the three months ended September 30, 2026, the provision for credit losses was $2.7 million compared to $3.0 million for the same period of 2025, a decrease of $0.3 million, or 10.0%. The decrease for the three month ended September 30, 2026 is primarily attributable to a decrease in the balances of loans and a prior year increase in the qualitative risk factor for loans with a risk rating of substandard or doubtful.
For the nine months ended September 30, 2026, the provision for credit losses was $6.0 million compared to $4.5 million for the same period of 2025, an increase of $1.5 million, or 33.3%. The increase for the nine month period was primarily attributable to an increase in amount of specific allowances on collateral-dependent loans in the current year.
The following tables present the components of the provision for credit losses for the three and nine months ended September 30, 2026, compared to the three and nine months ended September 30, 2025:
|
Three Months Ended September 30, |
||||||||||||||||
|
(Dollars in thousands) |
2026 |
2025 |
$ Change |
% Change |
||||||||||||
|
Loans |
$ |
2,578 |
$ |
3,054 |
$ |
(476 |
) |
(15.6 |
)% |
|||||||
|
Off-balance sheet credit exposures |
133 |
(17 |
) |
150 |
(882.4 |
)% |
||||||||||
|
$ |
2,711 |
$ |
3,037 |
$ |
(326 |
) |
(10.7 |
)% |
||||||||
|
Nine Months Ended September 30, |
||||||||||||||||
|
(Dollars in thousands) |
2026 |
2025 |
$ Change |
% Change |
||||||||||||
|
Loans |
$ |
5,093 |
$ |
4,251 |
$ |
842 |
19.8 |
% |
||||||||
|
Off-balance sheet credit exposures |
911 |
206 |
705 |
342.2 |
% |
|||||||||||
|
$ |
6,004 |
$ |
4,457 |
$ |
1,547 |
34.7 |
% |
|||||||||
Noninterest Income
Noninterest income consists of: (i) service charges on deposit accounts; (ii) mortgage origination income; (iii) debit card interchange fees; (iv) income from fiduciary activities; (v) ATM income; (vi) brokerage and insurance fees and commissions, (vii) life insurance income, (viii) Community Development Financial Institution ("CDFI") grants, (ix) loss on sale of securities, net and (x) other noninterest income.
BancPlus' income from service charges on deposit accounts and debit card interchange fees is largely affected by the volume, growth and type of deposits BancPlus holds, which are impacted by prevailing market conditions for BancPlus' deposit products, market interest rates, marketing efforts, and other factors.
Service charges on deposit accounts include fees and miscellaneous charges on deposit products offered by BancPlus. Mortgage origination income represents the gains recorded on the sale of mortgages originated by BancPlus. Debit card interchange fees represents income from the use of check cards by our customers. Income from fiduciary activities includes retirement and management fee income from our wealth management group. ATM income is comprised of fees from our ATM network. Brokerage and insurance fees and commissions includes stock and mutual fund brokerage fees earned by our wealth management group. Life insurance income includes earnings and benefits paid on bank-owned life insurance policies. Other income includes various types of income including gains on sale of other real estate owned, personalized check sales, and wire transfer fees.
Noninterest income increased $6.1 million, or 51.5%, to $17.9 million for the three months ended September 30, 2026 compared to $11.8 million for the same period of 2025, primarily due to losses on the sale of securities recorded in the prior year period and an increase in income from fiduciary activities in the current period partially offset by a decrease in mortgage origination income.
The following table presents the major components of noninterest income for the three months ended September 30, 2026, compared to the three months ended September 30, 2025:
|
Three Months Ended September 30, |
||||||||||||||||
|
(Dollars in thousands) |
2026 |
2025 |
$ Change |
% Change |
||||||||||||
|
Noninterest income: |
||||||||||||||||
|
Service charges on deposit accounts |
$ |
6,765 |
$ |
6,614 |
$ |
151 |
2.3 |
% |
||||||||
|
Mortgage origination income |
1,000 |
1,777 |
(777 |
) |
(43.7 |
)% |
||||||||||
|
Debit card interchange fees |
2,406 |
2,503 |
(97 |
) |
(3.9 |
)% |
||||||||||
|
Income from fiduciary activities |
3,574 |
2,966 |
608 |
20.5 |
% |
|||||||||||
|
ATM income |
1,352 |
1,250 |
102 |
8.2 |
% |
|||||||||||
|
Brokerage and insurance fees and commissions |
869 |
785 |
84 |
10.7 |
% |
|||||||||||
|
Life insurance income |
804 |
1,208 |
(404 |
) |
(33.4 |
)% |
||||||||||
|
Loss on sale of securities, net |
- |
(6,331 |
) |
6,331 |
100.0 |
% |
||||||||||
|
Other income |
1,162 |
1,062 |
100 |
9.4 |
% |
|||||||||||
|
Total |
$ |
17,932 |
$ |
11,834 |
$ |
6,098 |
51.5 |
% |
||||||||
Mortgage origination income decreased $777,000, or 43.7%, to $1.0 million for the three months ended September 30, 2026 compared to $1.8 million for the same period of 2025 primarily due to a decrease in mortgage activity compared to the same period of 2025.
Income from fiduciary activities increased $608,000, or 20.5%, to $3.6 million for the three months ended September 30, 2026 compared to $3.0 million for the same period of 2025 primarily due to an increase in total average assets under management and an increase in retirement balances compared to the same period of 2025.
There were no losses on the sale of securities during the three months ended September 30, 2026 compared to $6.3 million in losses for the same period of 2025 as a result of the Company restructuring its bond portfolio during the third quarter of 2025.
Non interest income increased $5.0 million, or 9.6%, to $56.4 million for the nine months ended September 30, 2026 compared to $51.5 million for the same period of 2025, primarily due to losses on the sale of securities in the prior year period and increases in income from fiduciary activities in the current year period partially offset by decreases in other income, mortgage origination income, and CDFI grants.
The following table presents the major components of noninterest income for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025:
|
Nine Months Ended September 30, |
||||||||||||||||
|
(Dollars in thousands) |
2026 |
2025 |
$ Change |
% Change |
||||||||||||
|
Noninterest income: |
||||||||||||||||
|
Service charges on deposit accounts |
$ |
19,252 |
$ |
18,490 |
$ |
762 |
4.1 |
% |
||||||||
|
Mortgage origination income |
3,406 |
4,197 |
(791 |
) |
(18.8 |
)% |
||||||||||
|
Debit card interchange fees |
7,073 |
7,331 |
(258 |
) |
(3.5 |
)% |
||||||||||
|
Income from fiduciary activities |
9,980 |
8,254 |
1,726 |
20.9 |
% |
|||||||||||
|
ATM income |
3,979 |
3,748 |
231 |
6.2 |
% |
|||||||||||
|
Brokerage and insurance fees and commissions |
2,481 |
2,227 |
254 |
11.4 |
% |
|||||||||||
|
Life insurance income |
2,907 |
2,989 |
(82 |
) |
(2.7 |
)% |
||||||||||
|
CDFI grants |
- |
629 |
(629 |
) |
(100.0 |
)% |
||||||||||
|
Loss on sale of securities, net |
- |
(6,331 |
) |
6,331 |
(100.0 |
)% |
||||||||||
|
Other income |
7,333 |
9,916 |
(2,583 |
) |
(26.0 |
)% |
||||||||||
|
Total |
$ |
56,411 |
$ |
51,450 |
$ |
4,961 |
9.6 |
% |
||||||||
Mortgage origination income decreased $791,000, or 18.8% to $3.4 million for the nine months ended September 30, 2026 compared to $4.2 million for the same period of 2025 primarily due to a decrease in mortgage activity compared to the same period of 2025.
Income from fiduciary activities increased $1.7 million, or 20.9%, to $10.0 million for the nine months ended September 30, 2026 compared to $8.3 million for the same period of 2025 primarily due to an increase in total average assets under management and an increase in retirement balances compared to the same period of 2025.
There were no CDFI grants during the nine months ended September 30, 2026 compared to $629,000 in CDFI grants for the same period of 2025 as a result of a grant awarded in January of 2025.
There were no losses on the sale of securities during the nine months ended September 30, 2026 compared to $6.3 million in losses for the same period of 2025 as a result of the Company restructuring its bond portfolio during the third quarter of 2025.
Other income decreased $2.6 million, or 26.0%, to $7.3 million for the nine months ended September 30, 2026 compared to $9.9 million for the same period of 2025 primarily due to a decrease in gains on sale of branches in the current year to date period.
Noninterest Expense
Noninterest expense includes: (i) salaries and employee benefits expenses; (ii) net occupancy expenses; (iii) furniture, equipment, and data processing expenses; (iv) marketing and promotional expenses; (v) other real estate expenses and losses; (vi) professional fees; and (vii) other expenses.
Salaries and employee benefits expenses include compensation, employee benefits and tax expenses for BancPlus' personnel. Net occupancy expenses include depreciation expense on BancPlus' owned properties, lease expense on its leased properties and other occupancy-related expenses. Furniture and equipment expenses include depreciation and maintenance and other expenses related to its furniture, fixtures and equipment. Data processing expenses include costs related to maintenance and monitoring of its systems and expenses paid to its third-party data processing system providers. Marketing and promotional expenses include costs for advertising, promotions and sponsorships. Other real estate expenses and losses include taxes, insurance, maintenance and other expenses related to BancPlus' foreclosed properties. Professional fees include accounting and auditing, consulting and legal fees. Other expenses include expenses associated with FDIC assessments, MDBCF assessments, communications, travel, meals, training, supplies, and postage.
Noninterest expense generally increases as BancPlus grows its business. Noninterest expense has increased commensurate with our growth over the past few years as BancPlus has grown organically and through acquisitions. Additionally, BancPlus has built out and modernized its operational infrastructure and implemented its plan to build an efficient, technology-driven banking operation with capacity for growth. BancPlus continues to focus efforts on supporting growth through sales efforts, product development, marketing and promotion, as well as investing in technology and its branch network, while also seeking to improve productivity and maintain appropriate cost structure and customer service levels.
For the three months ended September 30, 2026, noninterest expense totaled $56.1 million, an increase of $446,000, or 0.8%, from $55.6 million for the three months ended September 30, 2025, primarily due to increases in salaries and employee benefits expense and net occupancy expenses, partially offset by a decrease in other expenses.
The following table presents the major components of noninterest expense for the three months ended September 30, 2026 compared to the three months ended September 30, 2025:
|
Three Months Ended September 30, |
||||||||||||||||
|
(Dollars in thousands) |
2026 |
2025 |
$ Change |
% Change |
||||||||||||
|
Noninterest expense: |
||||||||||||||||
|
Salaries and employee benefits expenses |
$ |
33,857 |
$ |
33,123 |
$ |
734 |
2.2 |
% |
||||||||
|
Net occupancy expenses |
4,903 |
4,556 |
347 |
7.6 |
% |
|||||||||||
|
Furniture, equipment and data processing expenses |
7,424 |
7,425 |
(1 |
) |
(0.0 |
)% |
||||||||||
|
Marketing and promotional expenses |
2,017 |
2,021 |
(4 |
) |
(0.2 |
)% |
||||||||||
|
Other real estate expenses and losses |
268 |
283 |
(15 |
) |
(5.3 |
)% |
||||||||||
|
Professional fees |
1,192 |
1,270 |
(78 |
) |
(6.1 |
)% |
||||||||||
|
Other expenses |
6,418 |
6,955 |
(537 |
) |
(7.7 |
)% |
||||||||||
|
Total |
$ |
56,079 |
$ |
55,633 |
$ |
446 |
0.8 |
% |
||||||||
Salaries and employee benefits expenses was the largest component of noninterest expense, representing 60.4% and 59.5% of total noninterest expense for the three months ended September 30, 2026 and 2025, respectively. Salaries and employee benefits expenses increased $734,000, or 2.2%, to $33.9 million during the three months ended September 30, 2026, compared to $33.1 million for the same period of 2025 primarily due to increases in medical costs and incentive compensation, as well as normal annual salary increases for employees.
Net occupancy expenses increased $347,000, or 7.6%, to $4.9 million during the three months ended September 30, 2026 compared to $4.6 million for the same period of 2025 due to an increase in maintenance costs in the current period compared to the same period of 2025.
Other expenses decreased $537,000, or 7.7%, to $6.4 million during the three months ended September 30, 2026 compared to $7.0 million for the same period of 2025 due to losses on equity method investments recorded in the prior period.
For the nine months ended September 30, 2026, noninterest expense totaled $172.7 million, an increase of $6.1 million, or 3.6%, from $166.6 million for the nine months ended September 30, 2025, primarily due to an increase in salaries and employee benefits expense and furniture, equipment and data processing expenses, partially offset by decreases in other real estate expenses and losses and professional fees.
The following table presents the major components of noninterest expense for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025:
|
Nine Months Ended September 30, |
||||||||||||||||
|
(Dollars in thousands) |
2026 |
2025 |
$ Change |
% Change |
||||||||||||
|
Noninterest expense: |
||||||||||||||||
|
Salaries and employee benefits expenses |
$ |
104,967 |
$ |
97,909 |
$ |
7,058 |
7.2 |
% |
||||||||
|
Net occupancy expenses |
14,668 |
14,459 |
209 |
1.4 |
% |
|||||||||||
|
Furniture, equipment and data processing expenses |
23,022 |
22,374 |
648 |
2.9 |
% |
|||||||||||
|
Marketing and promotional expenses |
5,480 |
5,302 |
178 |
3.4 |
% |
|||||||||||
|
Other real estate expenses and losses |
791 |
2,015 |
(1,224 |
) |
(60.7 |
)% |
||||||||||
|
Professional fees |
2,916 |
3,405 |
(489 |
) |
(14.4 |
)% |
||||||||||
|
Other expenses |
20,811 |
21,175 |
(364 |
) |
(1.7 |
)% |
||||||||||
|
Total |
$ |
172,655 |
$ |
166,639 |
$ |
6,016 |
3.6 |
% |
||||||||
Salaries and employee benefits expenses was the largest component of noninterest expense, representing 60.8% and 58.8% of total noninterest expense for the nine months ended September 30, 2026 and 2025, respectively. Salaries and employee benefits expenses increased $7.1 million, or 7.2%, to $105.0 million during the nine months ended September 30, 2026, compared to $97.9 million for the same period of 2025 primarily due to increases in medical costs, retirement related expenses, and incentive compensation, as well as normal annual salary increases for employees.
Furniture, equipment and data processing expenses increased $648,000, or 2.9%, to $23.0 million during the nine months ended September 30, 2026, compared to $22.4 million for the same period of 2025 primarily due to increases in software and data processing expenses in the current year to date period.
Other real estate expenses and losses decreased $1.2 million, or 60.7%, to $791,000 during the nine months ended September 30, 2026 compared to $2.0 million for the same period of 2025 primarily due to writedowns and losses on the sale of other real estate owned in the prior year.
Professional fees decreased $489,000, or 14.4%, to $2.9 million during the nine months ended September 30, 2026 compared to $3.4 million for the same period of 2025 due to a decrease in consulting expense in the current year to date period.
Income Tax Expense
The provision for income taxes includes both federal and state taxes. Fluctuations in effective tax rates reflect the effect of the differences in the inclusion or deductibility of certain income and expenses for income tax purposes, the mix of BancPlus' taxable and tax-free investments and loans, and its overall taxable income.
BancPlus recorded income tax expense of $7.7 million for the three months ended September 30, 2026, compared to $4.4 million for the same period of 2025, an increase of $3.2 million, or 72.7%. BancPlus' effective tax rate for the three months ended September 30, 2026 was 22.2%, compared to 20.1% for the same period of 2025.
BancPlus recorded income tax expense of $21.9 million for the nine months ended September 30, 2026, compared to $16.3 million for the same period of 2025, an increase of $5.6 million, or 34.2%. BancPlus' effective tax rate for the nine months ended September 30, 2026 was 22.4%, compared to 21.0% for the same period of 2025.
For both the three and nine month periods, the increase in income tax expense was the result of larger income before taxes in the current year to date period. The increase in effective tax rate was the result of smaller tax credits in the current year.
Financial Condition
The following discussion compares BancPlus' financial condition as of September 30, 2026 to December 31, 2025.
Assets
Total assets increased $0.23 billion, or 2.8%, to $8.31 billion at September 30, 2026, compared to total assets of $8.08 billion at December 31, 2025, primarily as a result of an increase in deposits, loans held for investment, and securities available for sale. Total cash and cash equivalents decreased $46.5 million, or 13.3%, to $301.8 million at September 30, 2026, compared to $348.2 million at December 31, 2025. Total loans held for investment increased $91.2 million, or 1.4%, to $6.38 billion at September 30, 2026, compared to $6.29 billion at December 31, 2025. Investment securities increased $136.3 million, or 12.9%, to $1.2 billion at September 30, 2026, compared to $1.1 billion at December 31, 2025 primarily as a result of an increase in investment security purchases in the current period compared to the prior period.
Investment Securities Portfolio
BancPlus' investment securities portfolio, which consists primarily of U.S. Government agency obligations, U.S. Treasuries, mortgage-backed securities, municipal securities and corporate investments, is used as a source of liquidity and serves as collateral for certain types of deposits. BancPlus manages its investment securities portfolio according to a written investment policy. Balances in BancPlus' investment securities portfolio change over time based on its funding needs and interest rate risk management objectives. BancPlus' liquidity levels take into account anticipated future cash flows and all available sources of credit and are maintained at levels management believes ensure flexibility in meeting its anticipated funding needs.
As of September 30, 2026, 1.6% of BancPlus' investment securities portfolio was classified as held to maturity and 98.4% was classified as available for sale. As of December 31, 2025, 2.2% of BancPlus' investment securities portfolio was classified as held to maturity and 97.8% was classified as available for sale.
At September 30, 2026, mortgage-backed securities represented 38.7%, U.S. Government agency obligations represented 35.8%, U.S. Treasuries represented 14.0%, municipal securities represented 6.3%, and corporate investments represented 5.3% of BancPlus' investment securities portfolio. At December 31, 2025, U.S. Government agency obligations represented 38.9%, mortgage-backed securities represented 32.1%, U.S. Treasuries represented 16.8%, municipal securities represented 7.5%, and corporate investments represented 4.7% of BancPlus' investment securities portfolio. Other than the U.S. government and its agencies, BancPlus' securities portfolio did not contain securities of any single issuer, including any securities issued by a state or political subdivision, that were payable from and secured by the same source of revenue or taxing authority where the aggregate carrying value of such securities exceeded 10% of shareholders' equity.
The following table presents the carrying value of BancPlus' investment securities portfolio as of the dates presented:
|
September 30, 2026 |
December 31, 2025 |
|||||||||||||||
|
(Dollars in thousands) |
Carrying Value |
% of Total |
Carrying Value |
% of Total |
||||||||||||
|
Held to Maturity: |
||||||||||||||||
|
(At amortized cost) |
||||||||||||||||
|
Issued by states and political subdivisions |
$ |
19,299 |
1.62 |
% |
$ |
23,257 |
2.20 |
% |
||||||||
|
Total held-to-maturity |
$ |
19,299 |
1.62 |
% |
$ |
23,257 |
2.20 |
% |
||||||||
|
Available for Sale: |
||||||||||||||||
|
(At fair value) |
||||||||||||||||
|
U.S. Treasuries |
166,829 |
13.97 |
% |
178,183 |
16.84 |
% |
||||||||||
|
U.S. Government agency obligations |
427,257 |
35.77 |
% |
411,707 |
38.91 |
% |
||||||||||
|
Issued by states and political subdivisions |
56,254 |
4.71 |
% |
56,333 |
5.32 |
% |
||||||||||
|
Mortgage-backed securities: |
||||||||||||||||
|
Residential |
181,474 |
15.19 |
% |
124,867 |
11.80 |
% |
||||||||||
|
Commercial |
280,439 |
23.48 |
% |
214,313 |
20.26 |
% |
||||||||||
|
Corporate investments |
62,827 |
5.26 |
% |
49,385 |
4.67 |
% |
||||||||||
|
Total available for sale |
$ |
1,175,080 |
98.38 |
% |
$ |
1,034,788 |
97.80 |
% |
||||||||
|
Total investment securities |
$ |
1,194,379 |
100.00 |
% |
$ |
1,058,045 |
100.00 |
% |
||||||||
The following tables present the carrying value of BancPlus' investment securities portfolio by their stated maturities and the weighted average yields for each maturity range as of the dates presented. Weighted-average yields have been computed on a fully tax equivalent basis using federal and state tax rates of 21% and 5%, respectively.
|
Maturity as of September 30, 2026 |
||||||||||||||||
|
Due in One Year or Less |
More Than One Year to |
More Than Five Years |
Due After Ten Years |
|||||||||||||
|
(Dollars in thousands) |
Amount |
Weighted |
Amount |
Weighted |
Amount |
Weighted |
Amount |
Weighted |
||||||||
|
Held to maturity: |
||||||||||||||||
|
Issued by states and political subdivisions |
$8,905 |
1.10 % |
$7,639 |
2.96 % |
$2,410 |
3.26 % |
$345 |
4.01 % |
||||||||
|
Total held to maturity |
$8,905 |
1.10 % |
$7,639 |
2.96 % |
$2,410 |
3.26 % |
$345 |
4.01 % |
||||||||
|
Available for sale: |
||||||||||||||||
|
U.S. Treasuries |
$14,742 |
4.02 % |
$126,047 |
4.08 % |
$26,040 |
4.02 % |
$- |
- % |
||||||||
|
U.S. Government agency obligations |
34,580 |
4.06 % |
330,233 |
3.94 % |
57,554 |
4.26 % |
4,890 |
5.39 % |
||||||||
|
Issued by states and political subdivisions |
10,429 |
3.26 % |
18,334 |
3.32 % |
16,641 |
4.31 % |
10,850 |
4.92 % |
||||||||
|
Mortgage-backed securities: |
||||||||||||||||
|
Residential |
- |
- % |
4,412 |
4.23 % |
63,374 |
4.35 % |
113,688 |
3.86 % |
||||||||
|
Commercial |
- |
- % |
146,325 |
4.27 % |
87,352 |
4.58 % |
46,762 |
5.10 % |
||||||||
|
Corporate investments |
- |
- % |
7,059 |
6.49 % |
53,768 |
5.94 % |
2,000 |
6.63 % |
||||||||
|
Total available for sale |
$59,751 |
3.91 % |
$632,410 |
4.06 % |
$304,729 |
4.65 % |
$178,190 |
4.32 % |
||||||||
|
Total investment securities |
$68,656 |
3.55 % |
$640,049 |
4.04 % |
$307,139 |
4.64 % |
$178,535 |
4.32 % |
||||||||
|
Maturity as of December 31, 2025 |
||||||||||||||||
|
Due in One Year or Less |
More Than One Year to |
More Than Five Years |
Due After Ten Years |
|||||||||||||
|
(Dollars in thousands) |
Amount |
Weighted |
Amount |
Weighted |
Amount |
Weighted |
Amount |
Weighted |
||||||||
|
Held to maturity: |
||||||||||||||||
|
Issued by states and political subdivisions |
$6,104 |
3.83 % |
$14,263 |
2.17 % |
$2,545 |
3.93 % |
$345 |
4.73 % |
||||||||
|
Total held to maturity |
$6,104 |
3.83 % |
$14,263 |
2.17 % |
$2,545 |
3.93 % |
$345 |
4.73 % |
||||||||
|
Available for sale: |
||||||||||||||||
|
U.S. Treasuries |
$15,002 |
4.17 % |
$120,399 |
4.13 % |
$42,782 |
3.84 % |
$- |
- % |
||||||||
|
U.S. Government agency obligations |
51,866 |
4.63 % |
314,987 |
3.92 % |
44,852 |
3.92 % |
- |
- % |
||||||||
|
Issued by states and political subdivisions |
9,921 |
3.39 % |
17,928 |
3.27 % |
21,501 |
4.10 % |
6,982 |
4.88 % |
||||||||
|
Mortgage-backed securities: |
||||||||||||||||
|
Residential |
- |
- % |
- |
- % |
25,761 |
4.18 % |
99,107 |
3.51 % |
||||||||
|
Commercial |
- |
- % |
124,561 |
4.34 % |
71,265 |
4.55 % |
18,488 |
5.01 % |
||||||||
|
Corporate investments |
492 |
2.75 % |
6,229 |
7.46 % |
42,665 |
5.34 % |
- |
- % |
||||||||
|
Total available for sale |
$77,281 |
4.37 % |
$584,104 |
4.07 % |
$248,826 |
4.37 % |
$124,577 |
3.81 % |
||||||||
|
Total investment securities |
$83,385 |
4.33 % |
$598,367 |
4.03 % |
$251,371 |
4.37 % |
$124,922 |
3.81 % |
||||||||
The objective of BancPlus' investment policy is to invest funds to provide sufficient liquidity, optimize the total return of the portfolio, mitigate interest rate risk, and meet pledging requirements. In doing so, BancPlus balances the market and credit risks against the potential investment return, makes most investments compatible with the pledge requirements of any deposits of public funds, and maintains compliance with regulatory investment requirements. BancPlus' investment policy allows portfolio holdings to include short-term securities purchased to provide needed liquidity and longer-term securities purchased to generate stable income over periods of interest rate fluctuations.
Loan Portfolio
The following tables detail composition and percentage composition of BancPlus' loan portfolio, by category, as of the dates presented:
|
As of September 30, 2026 |
As of December 31, 2025 |
|||||||||||||||
|
(Dollars in thousands) |
Amount |
Percent |
Amount |
Percent |
||||||||||||
|
Secured by real estate: |
||||||||||||||||
|
Residential properties |
$ |
1,836,998 |
28.78 |
% |
$ |
1,748,571 |
27.79 |
% |
||||||||
|
Construction and land development |
504,856 |
7.91 |
% |
452,044 |
7.18 |
% |
||||||||||
|
Farmland |
330,071 |
5.17 |
% |
339,528 |
5.40 |
% |
||||||||||
|
Other commercial |
2,756,343 |
43.18 |
% |
2,805,604 |
44.60 |
% |
||||||||||
|
Total real estate |
5,428,268 |
85.04 |
% |
5,345,747 |
84.97 |
% |
||||||||||
|
Commercial and industrial |
724,364 |
11.35 |
% |
721,855 |
11.47 |
% |
||||||||||
|
Agricultural production and other loans to farmers |
114,787 |
1.80 |
% |
112,345 |
1.79 |
% |
||||||||||
|
Consumer and other |
115,276 |
1.81 |
% |
111,586 |
1.77 |
% |
||||||||||
|
Total loans, gross |
$ |
6,382,695 |
100.00 |
% |
$ |
6,291,533 |
100.00 |
% |
||||||||
|
Allowance for credit losses |
(73,344 |
) |
(71,066 |
) |
||||||||||||
|
Total loans, net |
$ |
6,309,351 |
$ |
6,220,467 |
||||||||||||
Our loan portfolio was comprised of 69.4% commercial loans and 30.6% consumer loans as of September 30, 2026, compared to 70.4% commercial loans and 29.6% consumer loans as of December 31, 2025. Commercial loans consist of our construction and land development, farmland, other commercial, commercial and industrial, agricultural production and other loans to farmers categories and our consumer loans consist of our residential property and consumer and other categories.
As a general practice, BancPlus originates substantially all of its loans, but BancPlus occasionally participates in syndications and other loan participations. At September 30, 2026, BancPlus' loan portfolio included $221.3 million of loan participations purchased, or 3.5% of total loans, which included $61.4 million of shared national credits. At December 31, 2025, BancPlus' loan portfolio included $253.4 million of loan participations purchased, or 4.0% of total loans, which included $61.1 million of shared national credits.
The following tables detail the contractual maturities and sensitivity to interest rate changes for BancPlus' loan portfolio as of the dates presented:
|
As of September 30, 2026 |
||||||||||||||||||||
|
(Dollars in thousands) |
Due in |
More Than |
More Than Five Years to |
After Fifteen Years |
Total |
|||||||||||||||
|
Secured by real estate: |
||||||||||||||||||||
|
Residential properties |
$ |
227,540 |
$ |
802,485 |
$ |
488,203 |
$ |
318,770 |
$ |
1,836,998 |
||||||||||
|
Construction and land development |
280,214 |
186,765 |
33,770 |
4,107 |
504,856 |
|||||||||||||||
|
Farmland |
47,900 |
163,083 |
101,931 |
17,157 |
330,071 |
|||||||||||||||
|
Other commercial |
801,748 |
1,505,676 |
367,305 |
81,614 |
2,756,343 |
|||||||||||||||
|
Total real estate |
1,357,402 |
2,658,009 |
991,209 |
421,648 |
5,428,268 |
|||||||||||||||
|
Commercial and industrial |
251,410 |
403,757 |
69,196 |
1 |
724,364 |
|||||||||||||||
|
Agricultural production and other loans to farmers |
65,900 |
48,195 |
692 |
- |
114,787 |
|||||||||||||||
|
Consumer and other loans |
31,661 |
75,666 |
4,358 |
3,591 |
115,276 |
|||||||||||||||
|
Total loans |
$ |
1,706,373 |
$ |
3,185,627 |
$ |
1,065,455 |
$ |
425,240 |
$ |
6,382,695 |
||||||||||
|
As of December 31, 2025 |
||||||||||||||||||||
|
(Dollars in thousands) |
Due in |
More Than |
More Than Five Years to |
After Fifteen Years |
Total |
|||||||||||||||
|
Secured by real estate: |
||||||||||||||||||||
|
Residential properties |
$ |
218,398 |
$ |
771,566 |
$ |
392,102 |
$ |
366,505 |
$ |
1,748,571 |
||||||||||
|
Construction and land development |
251,389 |
184,530 |
10,796 |
5,329 |
452,044 |
|||||||||||||||
|
Farmland |
45,878 |
175,563 |
106,438 |
11,649 |
339,528 |
|||||||||||||||
|
Other commercial |
662,331 |
1,618,741 |
409,676 |
114,856 |
2,805,604 |
|||||||||||||||
|
Total real estate |
1,177,996 |
2,750,400 |
919,012 |
498,339 |
5,345,747 |
|||||||||||||||
|
Commercial and industrial |
220,955 |
433,361 |
67,538 |
1 |
721,855 |
|||||||||||||||
|
Agricultural production and other loans to farmers |
64,223 |
47,594 |
528 |
- |
112,345 |
|||||||||||||||
|
Consumer and other loans |
31,161 |
72,582 |
3,902 |
3,941 |
111,586 |
|||||||||||||||
|
Total loans |
$ |
1,494,335 |
$ |
3,303,937 |
$ |
990,980 |
$ |
502,281 |
$ |
6,291,533 |
||||||||||
|
As of September 30, 2026 |
||||||||||||
|
(Dollars in thousands) |
Fixed Interest |
Floating or |
Total |
|||||||||
|
Secured by real estate: |
||||||||||||
|
Residential properties |
$ |
1,386,490 |
$ |
450,508 |
$ |
1,836,998 |
||||||
|
Construction and land development |
226,999 |
277,857 |
504,856 |
|||||||||
|
Farmland |
185,876 |
144,195 |
330,071 |
|||||||||
|
Other commercial |
1,781,310 |
975,033 |
2,756,343 |
|||||||||
|
Total real estate |
3,580,675 |
1,847,593 |
5,428,268 |
|||||||||
|
Commercial and industrial |
339,140 |
385,224 |
724,364 |
|||||||||
|
Agricultural production and other loans to farmers |
42,993 |
71,794 |
114,787 |
|||||||||
|
Consumer and other loans |
64,452 |
50,824 |
115,276 |
|||||||||
|
Total loans |
$ |
4,027,260 |
$ |
2,355,435 |
$ |
6,382,695 |
||||||
|
As of December 31, 2025 |
||||||||||||
|
(Dollars in thousands) |
Fixed Interest |
Floating or |
Total |
|||||||||
|
Secured by real estate: |
||||||||||||
|
Residential properties |
$ |
1,295,784 |
$ |
452,787 |
$ |
1,748,571 |
||||||
|
Construction and land development |
193,558 |
258,486 |
452,044 |
|||||||||
|
Farmland |
192,109 |
147,419 |
339,528 |
|||||||||
|
Other commercial |
1,812,815 |
992,789 |
2,805,604 |
|||||||||
|
Total real estate |
3,494,266 |
1,851,481 |
5,345,747 |
|||||||||
|
Commercial and industrial |
340,278 |
381,577 |
721,855 |
|||||||||
|
Agricultural production and other loans to farmers |
47,480 |
64,865 |
112,345 |
|||||||||
|
Consumer and other loans |
63,110 |
48,476 |
111,586 |
|||||||||
|
Total loans |
$ |
3,945,134 |
$ |
2,346,399 |
$ |
6,291,533 |
||||||
Additionally, BancPlus enters into various other transactions to meet the financing needs of its customers including commitments to extend credit and letters of credit. Commitments to extend credit beyond current funding are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Such commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments may expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. Letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. These guarantees are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing and similar transactions. At September 30, 2026, BancPlus had total off-balance sheet commitments of $1.27 billion. At September 30, 2026, BancPlus had an allowance for credit loss on off-balance sheet commitments of $7.3 million.
Asset Quality
Federal regulations and BancPlus' internal policies require that BancPlus utilize an asset classification system as a means of managing and reporting problem and potential problem assets. BancPlus has incorporated an internal asset classification system, substantially consistent with federal banking regulations, as part of its credit monitoring system. Federal banking regulations set forth a classification scheme for problem and potential problem assets as "substandard," "doubtful" or "loss" assets. An asset is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard assets include those characterized by the distinct possibility that the insured institution will sustain some loss if the deficiencies are not corrected. Assets classified as doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses present make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable. Assets classified as loss are those considered uncollectible and of such little value that their continuance as assets without the establishment of a specific loss reserve is not warranted. Assets which do not currently expose BancPlus to sufficient risk to warrant classification in one of the categories mentioned above but possess weakness are required to be designated "watch" or "special mention."
The tables below set forth information on BancPlus' asset classification as of the dates presented. BancPlus had no assets classified as loss.
|
As of September 30, 2026 |
||||||||||||||||||||
|
(Dollars in thousands) |
Risk |
Special |
Substandard |
Doubtful |
Total |
|||||||||||||||
|
Secured by real estate: |
||||||||||||||||||||
|
Residential properties |
$ |
1,793,308 |
$ |
171 |
$ |
43,519 |
$ |
- |
$ |
1,836,998 |
||||||||||
|
Construction and land development |
493,259 |
2,318 |
9,279 |
- |
504,856 |
|||||||||||||||
|
Farmland |
323,075 |
83 |
6,913 |
- |
330,071 |
|||||||||||||||
|
Other commercial |
2,646,570 |
3,021 |
106,752 |
- |
2,756,343 |
|||||||||||||||
|
Total real estate |
5,256,212 |
5,593 |
166,463 |
- |
5,428,268 |
|||||||||||||||
|
Commercial and industrial |
706,562 |
3,690 |
14,077 |
35 |
724,364 |
|||||||||||||||
|
Agricultural production and other loans to farmers |
112,709 |
- |
2,078 |
- |
114,787 |
|||||||||||||||
|
Consumer and other |
114,991 |
- |
285 |
- |
115,276 |
|||||||||||||||
|
Total |
$ |
6,190,474 |
$ |
9,283 |
$ |
182,903 |
$ |
35 |
$ |
6,382,695 |
||||||||||
|
As of December 31, 2025 |
||||||||||||||||||||
|
(Dollars in thousands) |
Risk |
Special |
Substandard |
Doubtful |
Total |
|||||||||||||||
|
Secured by real estate: |
||||||||||||||||||||
|
Residential properties |
$ |
1,714,338 |
$ |
3,448 |
$ |
30,785 |
$ |
- |
$ |
1,748,571 |
||||||||||
|
Construction and land development |
441,428 |
1,443 |
8,907 |
266 |
452,044 |
|||||||||||||||
|
Farmland |
335,255 |
- |
4,273 |
- |
339,528 |
|||||||||||||||
|
Other commercial |
2,757,221 |
885 |
47,498 |
- |
2,805,604 |
|||||||||||||||
|
Total real estate |
5,248,242 |
5,776 |
91,463 |
266 |
5,345,747 |
|||||||||||||||
|
Commercial and industrial |
702,312 |
1,252 |
18,280 |
11 |
721,855 |
|||||||||||||||
|
Agricultural production and other loans to farmers |
111,335 |
- |
961 |
49 |
112,345 |
|||||||||||||||
|
Consumer and other |
111,265 |
- |
321 |
- |
111,586 |
|||||||||||||||
|
Total |
$ |
6,173,154 |
$ |
7,028 |
$ |
111,025 |
$ |
326 |
$ |
6,291,533 |
||||||||||
Nonperforming Assets
Nonperforming loans include loans accounted for on a nonaccrual basis and loans that are 90 days past due and still accruing. Nonperforming assets consist of nonperforming loans plus foreclosed assets (i.e. real estate acquired through foreclosure).
The following table summarizes BancPlus' nonperforming assets, by category, as of the dates presented:
|
(Dollars in thousands) |
September 30, |
December 31, |
||||||
|
Nonaccrual loans: |
||||||||
|
Real estate loans: |
||||||||
|
Residential properties |
$ |
14,800 |
$ |
10,667 |
||||
|
Construction and land development |
7,323 |
2,025 |
||||||
|
Farmland |
966 |
1,389 |
||||||
|
Other commercial |
10,853 |
6,818 |
||||||
|
Total real estate |
33,942 |
20,899 |
||||||
|
Commercial and industrial |
2,891 |
1,547 |
||||||
|
Agricultural production and other loans to farmers |
948 |
861 |
||||||
|
Consumer and other |
140 |
168 |
||||||
|
Total nonaccrual loans |
$ |
37,921 |
$ |
23,475 |
||||
|
90+ days past due and accruing: |
||||||||
|
Real estate loans: |
||||||||
|
Residential properties |
$ |
2,584 |
$ |
2,797 |
||||
|
Construction and land development |
35 |
- |
||||||
|
Farmland |
937 |
- |
||||||
|
Other commercial |
999 |
859 |
||||||
|
Total real estate |
4,555 |
3,656 |
||||||
|
Commercial and industrial |
44 |
203 |
||||||
|
Agricultural production and other loans to farmers |
247 |
6 |
||||||
|
Consumer and other |
19 |
9 |
||||||
|
Total 90+ days past due and accruing |
$ |
4,865 |
$ |
3,874 |
||||
|
Total nonperforming loans |
$ |
42,786 |
$ |
27,349 |
||||
|
Plus: foreclosed assets |
7,875 |
5,243 |
||||||
|
Total nonperforming assets |
$ |
50,661 |
$ |
32,592 |
||||
|
Nonaccrual loans to total loans |
0.59 |
% |
0.37 |
% |
||||
|
Nonperforming loans to total loans |
0.67 |
% |
0.43 |
% |
||||
|
Nonperforming assets to total assets |
0.61 |
% |
0.40 |
% |
||||
|
Allowance for credit losses to nonaccrual loans |
193.41 |
% |
302.73 |
% |
||||
Total nonperforming assets increased by $18.1 million, or 55.4%, from $32.6 million at December 31, 2025 to $50.7 million at September 30, 2026, primarily as a result of past due and nonaccrual real estate loans. The ratio for nonaccrual loans to total loans increased for the nine months ended September 30, 2026 primarily as a result of the increase in nonaccrual real estate loans. The ratio for allowance for credit losses to nonaccrual loans decreased as a result of the increase in nonaccrual loans in the current year.
The balance of nonperforming assets can fluctuate due to changes in economic conditions. BancPlus has established a policy to discontinue accruing interest on a loan (that is, place the loan on nonaccrual status) after it has become 90 days delinquent as to payment of principal or interest, unless the loan is considered to be well-secured and in the process of collection. When a loan is placed on nonaccrual status, interest that is accrued but not collected is reversed against interest income. Generally, payments received on nonaccrual loans are applied directly to principal.
Allowance for Credit Losses
The allowance for credit losses is a reserve established through charges to earnings in the form of a provision for credit losses. BancPlus maintains an allowance for credit losses at a level management considers adequate to provide for expected credit losses on loans over the life of the loan. The level of the allowance is based on management's evaluation of estimated losses in the portfolio, after consideration of risk characteristics of the loans and prevailing economic conditions. Loan charge-offs (i.e. loans judged to be uncollectible) are charged against the reserve and any subsequent recovery is credited to the reserve. BancPlus made the policy election to exclude accrued interest receivable on loans from the estimate of credit losses. The Company calculates estimated credit loss on its portfolio primarily using quantitative methodologies using relevant available information from internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. The ACL is evaluated and calculated on a collective basis for those loans which share similar risk characteristics. At each reporting period, the Company evaluates whether the loans in a pool continue to exhibit similar risk characteristics as the other loans and whether it needs to evaluate the allowance on an individual basis. The Company has chosen to segment its portfolio consistent with the manner in which it manages the risk of the type of credit. The Company's segments for loans include commercial real estate, commercial and industrial, residential and consumer.
Expected credit losses are estimated over the contractual term of each loan taking into consideration expected prepayments. The contractual term excludes expected extensions, renewals, and modifications. Also included in the allowance for credit losses are qualitative reserves to cover losses that are expected but, in the Company's assessment, may not be adequately represented in the quantitative method or the economic assumptions described above. For example, factors that the Company considers include the nature and size of the portfolio, portfolio concentrations, the volume and severity of past due loans and non-accrual loans and current business conditions.
These estimates are reviewed at least quarterly, and, as adjustments become necessary, they are recognized in the periods in which they become known. During the first nine months of 2026, the U.S. economy continued to experience volatility and there remains uncertainty surrounding future economic conditions as a result of tariffs, supply chain disruptions, labor shortages, and the conflicts in Ukraine and the Middle East. Although management strives to maintain an allowance it deems adequate, future economic changes, deterioration of borrowers' creditworthiness, and the impact of examinations by regulatory agencies all could cause changes to BancPlus' allowance for credit losses.
The allowance for credit losses increased $2.2 million, or 3.2%, to $73.3 million at September 30, 2026 compared to $71.1 million at December 31, 2025. As a percentage of loans, the allowance for credit losses was 1.15% and 1.13% at September 30, 2026 and December 31, 2025, respectively. The change was primarily a result of an increase in loan balances and an increase in amount of specific allowances on collateral-dependent loans in the current year. Net charge-offs totaled $2.8 million for the nine months ended September 30, 2026 compared to $2.6 million for the same period of 2025.
The following is a summary of the activity in the allowance for credit loss reserve as of and for the year-to-date periods presented:
|
(Dollars in thousands) |
September 30, |
September 30, |
||||||
|
Balance, beginning of period |
$ |
71,066 |
$ |
71,913 |
||||
|
Charge-offs: |
||||||||
|
Residential properties |
730 |
582 |
||||||
|
Construction and land development |
5 |
181 |
||||||
|
Farmland |
21 |
- |
||||||
|
Other commercial |
500 |
283 |
||||||
|
Total real estate |
1,256 |
1,046 |
||||||
|
Commercial and industrial |
1,114 |
940 |
||||||
|
Agricultural production and other loans to farmers |
41 |
142 |
||||||
|
Consumer and other |
2,063 |
1,994 |
||||||
|
Total charge-offs |
4,474 |
4,122 |
||||||
|
Recoveries: |
||||||||
|
Residential properties |
288 |
124 |
||||||
|
Construction and land development |
101 |
90 |
||||||
|
Farmland |
16 |
16 |
||||||
|
Other commercial |
245 |
72 |
||||||
|
Total real estate |
650 |
302 |
||||||
|
Commercial and industrial |
148 |
172 |
||||||
|
Agricultural production and other loans to farmers |
78 |
14 |
||||||
|
Consumer and other |
783 |
1,062 |
||||||
|
Total recoveries |
1,659 |
1,550 |
||||||
|
Net charge-offs |
2,815 |
2,572 |
||||||
|
Provision for credit losses |
5,093 |
4,251 |
||||||
|
Balance, end of period |
$ |
73,344 |
$ |
73,592 |
||||
|
Total loans, end of period (including loans held for sale) |
$ |
6,393,236 |
$ |
6,218,917 |
||||
|
Average loans |
6,360,739 |
6,143,556 |
||||||
|
Net charge-offs (annualized) to average loans |
0.06 |
% |
0.06 |
% |
||||
|
Allowance for credit losses to total loans |
1.15 |
% |
1.18 |
% |
||||
The table below reflects net charge-offs to average loans outstanding, by category, during the periods presented.
|
September 30, 2026 |
September 30, 2025 |
|||||||||||||||||||||||
|
(Dollars in thousands) |
Net |
Average |
Net Charge-offs to Average Loans |
Net |
Average |
Net Charge-offs to Average Loans |
||||||||||||||||||
|
Residential properties |
$ |
442 |
$ |
1,778,604 |
0.03 |
% |
$ |
458 |
$ |
1,681,744 |
0.04 |
% |
||||||||||||
|
Construction and land development |
(96 |
) |
486,304 |
(0.03 |
)% |
91 |
527,727 |
0.02 |
% |
|||||||||||||||
|
Farmland |
5 |
333,236 |
0.00 |
% |
(16 |
) |
314,297 |
(0.01 |
)% |
|||||||||||||||
|
Other commercial |
255 |
2,781,742 |
0.01 |
% |
211 |
2,769,748 |
0.01 |
% |
||||||||||||||||
|
Commercial and industrial |
966 |
745,206 |
0.17 |
% |
768 |
620,999 |
0.16 |
% |
||||||||||||||||
|
Agricultural production and other loans to farmers |
(37 |
) |
114,307 |
(0.04 |
)% |
128 |
106,790 |
0.16 |
% |
|||||||||||||||
|
Consumer and other |
1,280 |
112,449 |
1.52 |
% |
932 |
112,402 |
1.11 |
% |
||||||||||||||||
|
Loans held for sale |
- |
8,891 |
- |
% |
- |
9,849 |
- |
% |
||||||||||||||||
|
Total |
$ |
2,815 |
$ |
6,360,739 |
0.06 |
% |
$ |
2,572 |
$ |
6,143,556 |
0.06 |
% |
||||||||||||
The following tables present a summary of the allocation of the allowance for credit losses by loan portfolio category, and the percentage of loans in each category, for the periods presented:
|
September 30, 2026 |
December 31, 2025 |
|||||||||||||||
|
(Dollars in thousands) |
Amount |
Percent |
Amount |
Percent |
||||||||||||
|
Residential properties |
$ |
28,485 |
38.8 |
% |
$ |
25,991 |
36.6 |
% |
||||||||
|
Construction and land development |
8,162 |
11.1 |
% |
7,420 |
10.4 |
% |
||||||||||
|
Farmland |
6,303 |
8.6 |
% |
7,914 |
11.1 |
% |
||||||||||
|
Other commercial |
18,498 |
25.2 |
% |
17,111 |
24.1 |
% |
||||||||||
|
Total real estate |
61,448 |
83.8 |
% |
58,436 |
82.2 |
% |
||||||||||
|
Commercial and industrial |
9,382 |
12.8 |
% |
10,065 |
14.2 |
% |
||||||||||
|
Agricultural production and other loans to farmers |
1,556 |
2.1 |
% |
1,652 |
2.3 |
% |
||||||||||
|
Consumer and other |
958 |
1.3 |
% |
913 |
1.3 |
% |
||||||||||
|
Total allowance for loan losses |
$ |
73,344 |
100.0 |
% |
$ |
71,066 |
100.0 |
% |
||||||||
Goodwill and Other Intangible Assets
Goodwill was $62.8 million as of both September 30, 2026 and December 31, 2025. Goodwill represents the excess of the consideration paid over the fair value of the net assets acquired by the Company in prior acquisitions. Goodwill is not amortized but is subject to, at a minimum, an annual test for impairment. Other intangible assets consisted of acquired customer relationships from a 2014 acquisition and core deposit intangibles from the merger (the "SCC Merger") with State Capital Corp. and the merger (the "FTC Merger") with First Trust Corporation. Total other intangible assets at September 30, 2026 and December 31, 2025 were $5.8 million and $6.9 million, respectively. Other intangible assets are amortized over their estimated useful life.
Deposits
The following table details the composition and percentage composition of BancPlus' deposit portfolio, by category, for the year to date periods presented:
|
September 30, 2026 |
December 31, 2025 |
|||||||||||||||||||||||
|
(Dollars in thousands) |
Average |
Average |
Percent |
Average |
Average |
Percent |
||||||||||||||||||
|
Non-interest bearing |
$ |
1,288,874 |
0.00 |
% |
17.96 |
% |
$ |
1,320,556 |
0.00 |
% |
19.56 |
% |
||||||||||||
|
Interest bearing: |
||||||||||||||||||||||||
|
Transaction accounts |
1,627,880 |
1.94 |
% |
22.68 |
% |
1,384,288 |
1.79 |
% |
20.50 |
% |
||||||||||||||
|
Money market and other savings accounts |
2,560,586 |
2.45 |
% |
35.67 |
% |
2,283,396 |
2.54 |
% |
33.82 |
% |
||||||||||||||
|
Certificates of deposit |
1,566,669 |
3.36 |
% |
21.83 |
% |
1,498,968 |
3.66 |
% |
22.20 |
% |
||||||||||||||
|
Brokered time deposits |
134,172 |
4.08 |
% |
1.87 |
% |
264,582 |
4.42 |
% |
3.92 |
% |
||||||||||||||
|
Total deposits |
$ |
7,178,181 |
2.12 |
% |
100.00 |
% |
$ |
6,751,790 |
2.21 |
% |
100.00 |
% |
||||||||||||
BancPlus relies on increasing its deposit base to fund loans and other asset growth. BancPlus competes for local deposits by offering a variety of products at competitive rates. The increase in total average deposits of $426.3 million, or 6.3%, to $7.18 billion at September 30, 2026 from $6.75 billion as of December 31, 2025 primarily resulted from increases in interest bearing transaction deposits. At September 30, 2026 and December 31, 2025, BancPlus held deposits in excess of FDIC insurance limits estimated at $1.26 billion and $1.49 billion, respectively.
The following table shows the maturity of certificates of deposit, including brokered time deposits, at September 30, 2026:
|
(Dollars in thousands) |
$250,000 |
Less than |
Total |
Uninsured |
||||||||||||
|
3 months or less |
$ |
189,723 |
$ |
311,140 |
$ |
500,863 |
$ |
88,486 |
||||||||
|
Over 3 months through 6 months |
112,758 |
140,805 |
253,563 |
66,758 |
||||||||||||
|
Over 6 months through 12 months |
225,982 |
393,046 |
619,028 |
101,732 |
||||||||||||
|
Over 12 months |
82,941 |
126,785 |
209,726 |
45,691 |
||||||||||||
|
Total certificates of deposit |
$ |
611,404 |
$ |
971,776 |
$ |
1,583,180 |
$ |
302,667 |
||||||||
Borrowed Funds
Short-term Borrowings. In addition to deposits, BancPlus uses short-term borrowings, which consist of federal funds purchased and securities sold under agreements to repurchase, to meet the daily liquidity needs of its customers and fund its loan growth. Federal funds purchased represent primarily overnight borrowings through relationships with correspondent banks. Securities sold under agreements to repurchase are considered overnight borrowings and are secured by U.S. Government agency securities. At September 30, 2026 and December 31, 2025, BancPlus had no short-term borrowings. The following is a summary of our short-term borrowings during the periods presented.
|
Balances Outstanding |
Weighted Average Rate |
|||||||||||||||||||
|
Maximum |
||||||||||||||||||||
|
(Dollars in thousands) |
Month |
Average |
At Period |
During |
At Period |
|||||||||||||||
|
September 30, 2026 |
End |
Daily |
End |
Period |
End |
|||||||||||||||
|
Federal funds purchased |
$ |
- |
$ |
1 |
$ |
- |
3.07 |
% |
- |
% |
||||||||||
|
$ |
- |
$ |
- |
$ |
- |
|||||||||||||||
|
December 31, 2025 |
||||||||||||||||||||
|
Federal funds purchased |
$ |
- |
$ |
3 |
$ |
- |
5.05 |
% |
- |
% |
||||||||||
|
$ |
- |
$ |
3 |
$ |
- |
|||||||||||||||
Advances from FHLB and Other Borrowings. BankPlus is a member of the FHLB, and as a result, is eligible for advances from the FHLB pursuant to the terms of various borrowing agreements, which assist BancPlus in the funding of its loan and investment portfolios. BancPlus' FHLB advances are collateralized by a blanket lien on first mortgage and other qualifying loans. At September 30, 2026 and December 31, 2025, BancPlus had $22,000 and $60.0 million in FHLB borrowings, respectively, at a weighted average interest rate of 2.94% and 4.21%.
The Company also has available funding from the Federal Reserve Bank's discount window which it utilizes from time to time for short-term funding. At September 30, 2026 and December 31, 2025, the Company had zero borrowings outstanding with the Federal Reserve Bank.
On June 13, 2025, the Company entered into a Loan Agreement (the "Initial Loan Agreement") with First Horizon Bank ("First Horizon"). Under the terms of the Initial Loan Agreement, First Horizon agreed to provide the Company with a $30.0 million term loan (the "Initial Term Loan"), which was drawn down in full. On December 29, 2025, the Company entered into an Amended and Restated Loan Agreement (the "Amended Loan Agreement") with First Horizon. Under the terms of the Amended Loan Agreement, First Horizon agreed to provide the Company with an additional $10.0 million term loan (the "Subsequent Term Loan", collectively with the Initial Term Loan, the "Term Loans"), which was also drawn down in full. At September 30, 2026 and December 31, 2025, the balance on the Term Loans was $35.5 million and $38.5 million, respectively.
The Term Loans are collateralized by all of the outstanding shares of common stock of BankPlus pursuant to the terms of a Pledge Agreement dated June 13, 2025, as amended on December 29, 2025, between the Company and First Horizon (the "Pledge Agreement").
The Term Loans bear interest at the prime rate of interest as reported in The Wall Street Journal published daily minus a margin of 0.55%, subject to a minimum rate of 4.00%. Principal and interest payments are due quarterly on each of March 15, June 15, September 15, and December 15 in the amount of $750,000 for the Initial Term Loan and $250,000 for the Subsequent Term Loan. The Term Loans may be prepaid in full or in part at any time with no prepayment penalty. In conjunction with the Initial Term Loan, the Company incurred debt issuance costs of $38,000. These issuance costs are netted with the balance of the Initial Term Loan on the Company's consolidated balance sheet and are amortized over the life of the Initial Term Loan. The Initial Term Loan matures on June 15, 2030. The Subsequent Term Loan matures on December 29, 2030. At September 30, 2026, the remaining unamortized balance of these issuance costs was $28,000.
The Amended Loan Agreement contains customary representations and warranties, and customary affirmative covenants, related to, among other things, the maintenance of certain financial standards, the payment of dividends from the Bank to the Company and the provision of financial and other information to First Horizon. The Company and/or the Bank, as provided for in the Amended Loan Agreement, must maintain, among other financial standards, (i) a "Well Capitalized" rating as required by any applicable regulatory authority, (ii) a Tier 1 Leverage Ratio of not less than 8.00%, (iii) a return on average assets of at least 0.75% and (iv) a loan to value ratio of not more than 40%. The Amended Loan Agreement also contains customary negative covenants, related to, among other things, restrictions on indebtedness, liens, changes in management, mergers, dispositions, dividends and other distributions.
The Amended Loan Agreement provides for events of default customary for loans of this type, including but not limited to non-payment, breaches or defaults in the performance of covenants, insolvency, bankruptcy and a change in control of the Bank or the Company, as well as the initiation of certain actions by regulators of the Bank or the Company or the failure by the Bank or the Company to comply with the terms of any memorandum of understanding or letter agreement with any bank regulatory agency. During the existence of an event of default, all outstanding amounts of the Term Loans will bear interest at a rate per annum equal to the lesser of (i) the rate otherwise applicable thereto plus 4.00% and (ii) the maximum rate that may be charged under the Amended Loan Agreement, and First Horizon may take various actions, including declaring all outstanding amounts of the Amended Term Loan immediately due and payable and exercising all rights with respect to the collateral.
Required principal payments on FHLB advances and other borrowings were as follows:
|
(Dollars in thousands) |
September 30, 2026 |
|||
|
2026 |
1,003 |
|||
|
2027 |
4,014 |
|||
|
2028 |
4,005 |
|||
|
2029 |
4,000 |
|||
|
Thereafter |
22,500 |
|||
|
Total FHLB advances and other borrowings |
$ |
35,522 |
||
Subordinated Debentures Payable to Statutory Trusts. BancPlus owns the outstanding common stock of business trusts that have issued preferred capital securities to third parties. The preferred capital securities have qualified as Tier 1 capital, subject to regulatory rules and limits. These trusts used the proceeds from the issuance of the common stock and preferred capital securities to purchase subordinated debentures that BancPlus issued. The subordinated debentures are these trusts' only assets, and quarterly interest payments on these subordinated debentures are the sole source of cash for these trusts to pay quarterly distributions on the common stock and preferred capital securities. BancPlus has fully and unconditionally guaranteed the trusts' obligations on preferred capital securities.
The following table is a summary of debentures payable to statutory trusts:
|
(In thousands) |
Year of |
Interest |
September 30, |
December 31, |
||||||||
|
First Bancshares of Baton Rouge Statutory Trust I |
2034 |
Variable1 |
$ |
4,124 |
$ |
4,124 |
||||||
|
State Capital Statutory Trust IV |
2035 |
Variable2 |
5,155 |
5,155 |
||||||||
|
BancPlus Statutory Trust II |
2036 |
Variable3 |
20,619 |
20,619 |
||||||||
|
BancPlus Statutory Trust III |
2037 |
Variable4 |
20,619 |
20,619 |
||||||||
|
State Capital Master Trust |
2037 |
Variable5 |
6,186 |
6,186 |
||||||||
|
$ |
56,703 |
$ |
56,703 |
|||||||||
|
(1) Reprices quarterly based on three-month CME Term SOFR plus 2.50%, plus 0.26161% SOFR spread adjustment |
||||||||||||
|
(2) Reprices quarterly based on three-month CME Term SOFR plus 1.99%, plus 0.26161% SOFR spread adjustment |
||||||||||||
|
(3) Reprices quarterly based on three-month CME Term SOFR plus 1.50%, plus 0.26161% SOFR spread adjustment |
||||||||||||
|
(4) Reprices quarterly based on three-month CME Term SOFR plus 1.35%, plus 0.26161% SOFR spread adjustment |
||||||||||||
|
(5) Reprices quarterly based on three-month CME Term SOFR plus 1.46%, plus 0.26161% SOFR spread adjustment |
||||||||||||
The subordinated debentures payable to statutory trusts vary from the amount carried on the consolidated balance sheet at September 30, 2026 and December 31, 2025 due to the remaining purchase discount of $2.8 million at September 30, 2026 and $3.0 million at December 31, 2025, which was established upon the SCC Merger and is being amortized over the remaining life of the debentures.
Interest rates adjust quarterly for the subordinated debentures with rates indexed with SOFR.
The Company has the right to redeem the subordinated debentures prior to maturity. Upon redemption of the subordinated debentures payable to a statutory trust, the trust will also liquidate its common stock and preferred capital securities. BancPlus believes that it will be able to meet its principal and interest payment obligations as they come due through maintenance of adequate cash levels or subsequent borrowings. BancPlus expects to maintain adequate cash levels through profitability, loan and securities repayment and maturity activity and continued deposit gathering activities. BancPlus has in place various borrowing mechanisms for both short-term and long-term liquidity needs.
Shareholders' Equity
Shareholders' equity is influenced primarily by earnings, quarterly dividend payments, changes in common stock outstanding, and changes in accumulated other comprehensive income (loss) caused primarily by fluctuations in unrealized gains or losses, net of taxes, on available for sale investment securities.
Shareholders' equity (before adjustment for redeemable common stock owned by the ESOP) increased $18.3 million, or 2.1%, to $870.3 million at September 30, 2026 from $852.0 million at December 31, 2025, primarily due to net income of $75.9 million and stock based compensation of $5.6 million partially offset by common stock dividends paid of $18.6 million, purchase of company stock of $3.6 million, other comprehensive loss of $36.1 million, shares withheld to satisfy withholding obligation in the vesting of restricted stock of $2.5 million, and preferred stock dividends paid of $2.3 million.
Liquidity and Capital Resources
Bank Liquidity Management
Liquidity is BancPlus' capacity to meet its cash and collateral obligations at a reasonable cost, having cash when BancPlus needs it and having the appropriate amount of cash and other assets that are quickly convertible into cash without incurring significant loss. BancPlus is expected to maintain adequate liquidity at BankPlus to meet the cash flow requirements of its customers who may be either depositors wishing to withdraw funds or borrowers needing assurance that sufficient funds will be available to meet their credit needs. Maintaining an adequate level of liquidity depends on BancPlus' ability to efficiently meet both expected and unexpected cash flows and collateral needs without adversely affecting either BancPlus' daily operations or its financial condition. BancPlus' Asset Liability Management Committee ("ALCO"), which is comprised of members of senior management, is responsible for managing commitments to meet the needs of customers while achieving its financial objectives. ALCO meets regularly to review balance sheet composition, funding capacities, and current and forecasted loan demand, and BancPlus' Treasury Management department continuously monitors its liquidity position to ensure that assets and liabilities are managed in a manner that will meet all of its short-term and long-term cash requirements.
BancPlus manages its liquidity by maintaining adequate levels of cash and other assets from on and off-balance sheet arrangements. Specifically, on-balance sheet liquidity consists of cash and due from banks and unpledged investment securities, which BancPlus considers its primary liquidity. Furthermore, a significant portion of these unencumbered liquid assets are comprised of U.S. government agency obligations, mortgage-backed securities and other agency securities, which the regulatory bodies consider the most marketable and liquid, especially in a stress scenario. In regard to off-balance sheet capacity, BancPlus maintains available borrowing capacity under secured borrowing lines with the FHLB and the Federal Reserve Bank of St. Louis, as well as unsecured lines of credit for the purpose of overnight funds with various correspondent banks, which BancPlus considers its secondary liquidity. BancPlus also monitors its liquidity requirements in light of interest rate trends, changes in the economy, scheduled maturities and interest rate sensitivity of investments, loans, borrowings and deposits. As part of its liquidity management strategy, BancPlus is also focused on minimizing its costs of liquidity by growing its noninterest-bearing and other low-cost deposits and replacing higher cost borrowed funds.
The following tables provide a summary of BancPlus' primary and secondary liquidity levels.
|
(Dollars in thousands) |
September 30, 2026 |
December 31, 2025 |
||||||
|
Cash and cash equivalents |
$ |
301,777 |
$ |
348,249 |
||||
|
Total securities |
1,194,379 |
1,058,045 |
||||||
|
Less: pledged securities |
(160,680 |
) |
(273,591 |
) |
||||
|
Total primary liquidity |
$ |
1,335,476 |
$ |
1,132,703 |
||||
|
Ratio of primary liquidity to total deposits |
18.4 |
% |
16.2 |
% |
||||
|
Secondary Liquidity - Off-Balance Sheet Borrowing Capacity |
September 30, 2026 |
December 31, 2025 |
||||||
|
Net secured borrowing capacity with the FHLB |
$ |
2,034,850 |
$ |
2,043,201 |
||||
|
Net secured borrowing capacity with the Federal Reserve Bank |
1,260,968 |
1,288,575 |
||||||
|
Unsecured borrowing capacity with correspondent lenders |
198,000 |
198,000 |
||||||
|
Total secondary liquidity |
$ |
3,493,818 |
$ |
3,529,776 |
||||
|
Ratio of primary and secondary liquidity to total deposits |
66.6 |
% |
66.7 |
% |
||||
During the nine months ended September 30, 2026, BancPlus' primary liquidity increased by $202.8 million to $1.34 billion, compared to $1.13 billion at December 31, 2025, primarily due to an increase in total securities as well as a decrease in pledged
securities. Secondary liquidity decreased by $36.0 million to $3.49 billion as of September 30, 2026 from $3.53 billion as of December 31, 2025. This decrease was primarily due to a decrease in BancPlus' Federal Reserve and FHLB borrowing capacities.
In addition to its primary liquidity, BancPlus generates liquidity from cash flows from its loan and securities portfolios and from its large base of core customer deposits, defined as total deposits less brokered deposits and time deposits greater than $250,000. Core deposits totaled $6.67 billion and $6.12 billion and represented 91.9% and 87.5% of total deposits as of September 30, 2026 and December 31, 2025, respectively. These core deposits are normally less volatile, often with customer relationships tied to other products, which promote long-standing relationships and stable funding sources.
Holding Company Liquidity Management
BancPlus is a corporation separate and apart from BankPlus and, therefore, it must provide for its own liquidity. BancPlus' main source of funding is dividends declared and paid to it by BankPlus. Statutory and regulatory limitations exist that affect the ability of BankPlus to pay dividends to the holding company. BancPlus believes that these limitations will not impact the ability of the holding company to meet its ongoing short-term cash obligations.
Through June 30, 2026, Mississippi banking law generally prohibited BankPlus from paying dividends without the prior approval of the MDBCF. BankPlus received approval from the MDBCF to pay dividends of $21.6 million to BancPlus for the year-to-date period ended September 30, 2025. Effective July 1, 2026, Mississippi banking law was amended to permit a state bank to declare and pay dividends without the prior approval of the MDBCF. However, prior written approval of the MDBCF Commissioner would be required to declare and pay a dividend if any of the following conditions exist: (i) the bank is subject to a corrective plan or enforcement action, (ii) the dividend would cause the bank to become undercapitalized under the capital standards of its applicable federal regulator, or (iii) the MDBCF Commissioner determines that conditions exist at the bank that pose a risk to its safety and soundness. BankPlus paid dividends of $36.5 million to BancPlus for the year-to-date period ended September 30, 2026. Dividends received from BankPlus were used by the holding company to pay dividends to the BancPlus shareholders, principal and interest payments on debt and general operating expenses.
Capital Management and Regulatory Capital Requirements
BancPlus is subject to various capital requirements administered by federal banking regulators. Failure to meet minimum capital requirements can trigger certain mandatory and possibly additional discretionary actions by federal banking regulators that, if undertaken, could have a direct material effect on BancPlus' business operations.
Qualifying community banks have the option to use a simple leverage ratio, known as the CBLR, to measure capital adequacy and to not calculate risk-based capital ratios. A qualifying community bank has less than $10 billion in total consolidated assets, limited amounts of off-balance-sheet exposures and trading assets and liabilities, and a leverage ratio greater than 8.0%. Under an April 2026 final rule, the minimum CBLR requirement decreased from 9.0% to 8.0% as of July 1, 2026. The Company and the Bank elected to adopt the optional CBLR framework in the third quarter of 2022, as an alternative to the generally applicable capital rules.
Further, under prompt corrective action regulations, an insured depository institution is classified in one of several tiers based on its level of capital and other factors, and may be subject to an escalating series of remedial measures if it is less than "well capitalized." An institution is deemed "well capitalized" if it satisfies certain capital ratios and is not subject to any written agreement, order, capital directive, or prompt corrective action directive to meet and maintain a specific capital level for any capital measure. As of September 30, 2026 and December 31, 2025, the Bank maintained a leverage ratio of more than 8.0% and 9.0%, respectively, and, as an institution that has elected to adopt the CBLR framework, the Bank was therefore well capitalized under the regulatory framework for prompt corrective action.
As of September 30, 2026 and December 31, 2025, BancPlus and BankPlus met the minimum CBLR requirement applicable as of those dates and therefore satisfied the capital adequacy requirements to which they are subject. As a bank holding company, BancPlus is not subject to the prompt corrective action regime that applies to insured depository institutions, including BankPlus.
BancPlus' consolidated and BankPlus' actual capital amounts and ratios are shown in the following tables as of the dates presented (dollars in thousands):
|
Actual |
Minimum Requirement to be Well Capitalized |
|||||||||||||||
|
(Dollars in thousands) |
Capital Amount |
Ratio |
Capital Amount |
Ratio |
||||||||||||
|
September 30, 2026 |
||||||||||||||||
|
Company: |
||||||||||||||||
|
Community Bank Leverage Ratio |
$ |
893,301 |
10.77 |
% |
$ |
663,341 |
8.00 |
% |
||||||||
|
Bank: |
||||||||||||||||
|
Community Bank Leverage Ratio |
$ |
906,362 |
10.94 |
% |
$ |
663,005 |
8.00 |
% |
||||||||
|
Actual |
Minimum Requirement to be Well Capitalized |
|||||||||||||||
|
(Dollars in thousands) |
Capital Amount |
Ratio |
Capital Amount |
Ratio |
||||||||||||
|
December 31, 2025 |
||||||||||||||||
|
Company: |
||||||||||||||||
|
Community Bank Leverage Ratio |
$ |
844,129 |
10.67 |
% |
$ |
711,795 |
9.00 |
% |
||||||||
|
Bank: |
||||||||||||||||
|
Community Bank Leverage Ratio |
$ |
862,204 |
10.91 |
% |
$ |
711,404 |
9.00 |
% |
||||||||
Contractual Obligations
Contractual obligations as of September 30, 2026 totaled $1.71 billion and were primarily comprised of deposits with maturities of $1.58 billion, FHLB advances and other borrowings of $35.5 million, subordinated debentures of $53.9 million and operating lease obligations of $39.7 million. Contractual obligations due within twelve months were $1.38 billion and were primarily related to time deposits with maturity dates, short-term FHLB advances and other borrowings. Contractual obligations due in more than 12 months were $336.8 million and were comprised of time deposits with maturity dates, long-term FHLB advances and other borrowings and subordinated debentures with maturities ranging from 2030 through 2037. BancPlus expects to have adequate liquidity to meet these short and long-term obligations through profitability, repayments from loans and investment securities, deposit gathering activity and access to borrowing sources.
Recent Accounting Pronouncements
See Note 1 Basis of Presentation in our Condensed Notes to Consolidated Financial Statements elsewhere in this Quarterly Report on Form 10-Q for details of recently issued accounting pronouncements and their expected impact on our consolidated financial statements.
Critical Accounting Policies and Estimates
There have been no material changes to the critical accounting policies and estimates previously disclosed under Item 7 of the Company's Annual Report on Form 10-K for the year ended December 31, 2025, previously filed with the SEC.
BancPlus Corp. published this content on November 09, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on November 09, 2026 at 19:36 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]