HBT Financial Inc.

11/06/2026 | Press release | Distributed by Public on 11/06/2026 15:04

Quarterly Report for Quarter Ending September 30, 2026 (Form 10-Q)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Unless the context requires otherwise, references in this report to the "Company," "we," "us" and "our" refer to HBT Financial, Inc. and its subsidiaries.
The following is management's discussion and analysis of the financial condition as of September 30, 2026 (unaudited), as compared with December 31, 2025, and the results of operations for the three and nine months ended September 30, 2026 and 2025 (unaudited). Management's discussion and analysis should be read in conjunction with the Company's unaudited consolidated financial statements and notes thereto appearing elsewhere in this Quarterly Report on Form 10-Q, as well as the Company's audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 6, 2026. Results of operations for the three and nine months ended September 30, 2026 and 2025 are not necessarily indicative of results to be attained for the year ended December 31, 2026, or for any other period.
OVERVIEW
HBT Financial, Inc., headquartered in Bloomington, Illinois, is the holding company for Heartland Bank and Trust Company, and has banking roots that can be traced back to 1920. We provide a comprehensive suite of financial products and services to consumers, businesses, and municipal entities throughout Illinois, eastern Iowa, and suburban St. Louis. As of September 30, 2026, the Company had total assets of $6.7 billion, loans held for investment of $4.8 billion, and total deposits of $5.8 billion.
Market Area
As of September 30, 2026, our branch network included 83 full-service branch locations throughout Illinois, eastern Iowa, and suburban St. Louis. We hold a leading deposit share in many of our central Illinois markets, which we define as a top three deposit share rank, providing the foundation for our strong deposit base. The stability provided by this low-cost funding is a key driver of our strong track record of financial performance. Below is a summary of our loan and deposit balances by geographic region:
September 30, 2026 December 31, 2025
(dollars in thousands) Loans Deposits Loans Deposits
Central Illinois $ 1,838,559 $ 3,781,326 $ 1,428,580 $ 2,898,046
Chicago MSA 2,184,378 1,682,500 1,522,963 1,244,319
Suburban St. Louis 386,997 173,513 140,863 107,088
Iowa 372,809 115,093 363,803 109,810
Total $ 4,782,743 $ 5,752,432 $ 3,456,209 $ 4,359,263
Pending Tri-County Acquisition
On August 10, 2026, HBT Financial and Tri-County, the holding company for FSB in Mendota, Illinois, jointly announced the signing of a merger agreement pursuant to which HBT Financial will acquire Tri-County and FSB. As of September 30, 2026, Tri-County had total assets of $1.6 billion, total loans of $1.3 billion, total deposits of $1.3 billion, and 19 branch locations throughout central and northern Illinois. The acquisition will strengthen HBT Financial's presence in the central Illinois and Chicago MSA markets. The acquisition is expected to close early in the first quarter of 2027, subject to regulatory approvals and other customary closing conditions.
CNB Acquisition
On March 1, 2026, HBT Financial completed its acquisition of CNB, the holding company for CNB Bank. The acquisition of CNB further enhanced HBT Financial's footprint in the central Illinois, Chicago MSA, and suburban St. Louis markets. Prior to the acquisition, CNB operated 18 full-service branch locations which now operate as branches of Heartland Bank. The core system conversion was successfully completed in March 2026. After considering business combination accounting adjustments, CNB added total assets of $1.81 billion, total loans held for investment of $1.30 billion, and total deposits of $1.52 billion.
Total consideration consisted of 5.5 million shares of HBT Financial's common stock and $33.8 million in cash. Based on the closing price of HBT Financial common stock of $26.96 on February 27, 2026, the aggregate consideration was approximately $182.1 million. Goodwill of $22.1 million was recorded in the acquisition.
RESULTS OF OPERATIONS
Overview of Recent Financial Results
Three Months Ended September 30, Nine Months Ended September 30,
(dollars in thousands, except per share amounts) 2026 2025 2026 2025
Total interest and dividend income $ 90,662 $ 64,336 $ 251,084 $ 191,393
Total interest expense 20,341 14,350 55,320 43,041
Net interest income 70,321 49,986 195,764 148,352
Provision for credit losses (561) 596 (41) 1,698
Net interest income after provision for credit losses 70,882 49,390 195,805 146,654
Total noninterest income 14,237 9,849 37,022 28,295
Total noninterest expense 42,663 32,508 137,546 96,357
Income before income tax expense 42,456 26,731 95,281 78,592
Income tax expense 11,064 6,966 24,845 20,522
Net income $ 31,392 $ 19,765 $ 70,436 $ 58,070
Adjusted net income (1)
$ 31,411 $ 20,452 $ 82,556 $ 59,508
Pre-provision net revenue (1)
$ 41,895 $ 27,327 $ 95,240 $ 80,290
Pre-provision net revenue less net charge-offs (recoveries) (1)
42,399 27,193 95,086 78,680
Adjusted pre-provision net revenue (1)
41,685 28,288 111,666 82,301
Adjusted pre-provision net revenue less net charge-offs (recoveries) (1)
42,189 28,154 111,512 80,691
Share and Per Share Information
Earnings per share - diluted $ 0.86 $ 0.63 $ 1.99 $ 1.84
Adjusted earnings per share - diluted (1)
0.86 0.65 2.33 1.88
Weighted average shares of common stock outstanding 36,365,612 31,481,135 35,318,125 31,525,247
Summary Ratios
Net interest margin * 4.35 % 4.13 % 4.30 % 4.13 %
Net interest margin (tax-equivalent basis) * (1) (2)
4.40 4.18 4.35 4.18
Yield on loans * 6.43 6.35 6.37 6.37
Yield on interest-earning assets * 5.60 5.32 5.51 5.33
Cost of total deposits * 1.25 1.19 1.21 1.20
Cost of funds * 1.36 1.29 1.32 1.30
Efficiency ratio 48.73 % 53.17 % 57.46 % 53.37 %
Efficiency ratio (tax-equivalent basis) (1) (2)
48.24 52.68 56.88 52.88
Adjusted efficiency ratio (tax-equivalent basis) (1) (2)
47.74 51.55 49.73 52.18
Return on average assets * 1.85 % 1.56 % 1.47 % 1.54 %
Return on average stockholders' equity * 16.17 13.31 12.84 13.57
Return on average tangible common equity * (1)
19.27 15.28 15.23 15.66
Adjusted return on average assets * (1)
1.85 % 1.61 % 1.73 % 1.58 %
Adjusted return on average stockholders' equity * (1)
16.18 13.77 15.05 13.90
Adjusted return on average tangible common equity * (1)
19.29 15.81 17.85 16.05
_________________________________________________
* Annualized measure.
(1)See "Non-GAAP Financial Information" for reconciliation of non-GAAP measures to their most closely comparable GAAP measures.
(2)On a tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.
Comparison of the Three Months Ended September 30, 2026 to the Three Months Ended September 30, 2025
For the three months ended September 30, 2026, net income was $31.4 million, increasing by $11.6 million, or 58.8%, when compared to net income for the three months ended September 30, 2025. Notable changes include the following:
•A $20.3 million increase in net interest income, primarily attributable to higher average interest-earning asset balances following the CNB merger and improved yields on debt securities and loans, which were partially offset by an increase in funding costs;
•Acquisition-related expenses of $1.0 million recognized during the third quarter of 2026 were absent during the third quarter of 2025;
•Excluding acquisition-related expenses, noninterest expense increased by $9.2 million, primarily due to the addition of CNB operations, including a $5.8 million increase in salaries and employee benefits;
•A $4.4 million increase in noninterest income, with a $1.5 million positive mortgage servicing rights fair value adjustment included in the third quarter 2026 results compared to a $0.5 million negative mortgage servicing rights fair value adjustment included in the third quarter 2025 results, as well as increases in wealth management fees, service charges on deposit accounts, and card income as a result of a larger customer base following the CNB merger; and
•A $4.1 million increase in income tax expense, primarily due to an increase in pre-tax income as a result of the items noted above.
Comparison of the Nine Months Ended September 30, 2026 to the Nine Months Ended September 30, 2025
For the nine months ended September 30, 2026, net income was $70.4 million, increasing by $12.4 million, or 21.3%, when compared to net income for the nine months ended September 30, 2025. Notable changes include the following:
•A $47.4 million increase in net interest income, primarily attributable to higher average interest-earning asset balances following the CNB merger and improved yields on debt securities;
•Acquisition-related expenses of $16.9 million recognized during the nine months ended September 30, 2026 were absent during the nine months ended September 30, 2025;
•Excluding acquisition-related expenses, noninterest expense increased by $24.3 million, primarily reflecting higher base costs following the CNB merger, including a $14.6 million increase in salaries and benefits expense;
•An $8.7 million increase in noninterest income, with a $0.9 million positive mortgage servicing rights fair value adjustment included in the 2026 results compared to a $1.6 million negative mortgage servicing rights fair value adjustment included in the 2025 results, as well as increases in wealth management fees, service charges on deposit accounts, and card income as a result of a larger customer base following the CNB merger; and
•A $4.3 million increase in income tax expense, primarily due to an increase in pre-tax income as a result of the items noted above.
Net Interest Income
Net interest income equals the excess of interest income on interest earning assets (including discount accretion on acquired loans plus certain loan fees) over interest expense incurred on interest-bearing liabilities. Net interest margin, which is expressed as the percentage of net interest income to average interest-earning assets, is utilized to measure and explain changes in net interest income.
The following tables set forth average balances, average yields and costs, and certain other information. Average balances are daily average balances. Nonaccrual loans are included in the computation of average balances but have been reflected in the table as loans carrying a zero yield. The yields set forth below include the effect of deferred fees and costs as well as purchase accounting adjustments that are accreted or amortized to interest income or expense.
Three Months Ended
September 30, 2026 September 30, 2025
(dollars in thousands) Average Balance Interest Yield/Cost * Average Balance Interest Yield/Cost *
ASSETS
Loans $ 4,771,700 $ 77,395 6.43 % $ 3,379,637 $ 54,063 6.35 %
Debt securities 1,522,439 12,404 3.23 1,265,683 8,779 2.75
Deposits with banks 106,879 735 2.73 142,659 1,350 3.75
Other 17,807 128 2.88 12,540 144 4.51
Total interest-earning assets 6,418,825 $ 90,662 5.60 % 4,800,519 $ 64,336 5.32 %
Allowance for credit losses (60,865) (41,711)
Noninterest-earning assets 381,651 268,353
Total assets $ 6,739,611 $ 5,027,161
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand $ 1,358,462 $ 2,386 0.70 % $ 1,113,391 $ 1,676 0.60 %
Money market 1,018,285 5,296 2.06 833,812 4,638 2.21
Savings 841,588 1,212 0.57 568,001 399 0.28
Time 1,222,696 9,228 2.99 771,360 6,282 3.23
Total interest-bearing deposits 4,441,031 18,122 1.62 3,286,564 12,995 1.57
Securities sold under agreements to repurchase - - - 6 - -
Borrowings 19,701 126 2.53 7,256 31 1.68
Subordinated notes 84,038 1,233 5.82 32,714 387 4.69
Junior subordinated debentures issued to capital trusts 52,946 860 6.45 52,887 937 7.04
Total interest-bearing liabilities 4,597,716 $ 20,341 1.76 % 3,379,427 $ 14,350 1.68 %
Noninterest-bearing deposits 1,314,588 1,028,608
Noninterest-bearing liabilities 57,071 30,050
Total liabilities 5,969,375 4,438,085
Stockholders' Equity 770,236 589,076
Total liabilities and stockholders' equity $ 6,739,611 $ 5,027,161
Net interest income/Net interest margin (1)
$ 70,321 4.35 % $ 49,986 4.13 %
Tax-equivalent adjustment (2)
869 0.05 552 0.05
Net interest income (tax-equivalent basis)/
Net interest margin (tax-equivalent basis) (2) (3)
$ 71,190 4.40 % $ 50,538 4.18 %
Net interest rate spread (4)
3.84 % 3.64 %
Net interest-earning assets (5)
$ 1,821,109 $ 1,421,092
Ratio of interest-earning assets to interest-bearing liabilities 1.40 1.42
Cost of total deposits 1.25 % 1.19 %
Cost of funds 1.36 1.29
_________________________________________________
*Annualized measure.
(1)Net interest margin represents net interest income divided by average total interest-earning assets.
(2)On a tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.
(3)See "Non-GAAP Financial Information" for reconciliation of non-GAAP measures to their most closely comparable GAAP measures.
(4)Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(5)Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.
Nine Months Ended
September 30, 2026 September 30, 2025
(dollars in thousands) Average Balance Interest Yield/Cost * Average Balance Interest Yield/Cost *
ASSETS
Loans $ 4,467,683 $ 212,800 6.37 % $ 3,419,077 $ 162,971 6.37 %
Debt securities 1,472,552 34,774 3.16 1,229,388 24,075 2.62
Deposits with banks 136,230 3,035 2.98 141,216 3,959 3.75
Other 16,562 475 3.84 12,579 388 4.12
Total interest-earning assets 6,093,027 $ 251,084 5.51 % 4,802,260 $ 191,393 5.33 %
Allowance for credit losses (56,651) (41,962)
Noninterest-earning assets 362,291 271,193
Total assets $ 6,398,667 $ 5,031,491
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand $ 1,314,320 $ 6,555 0.67 % $ 1,119,902 $ 4,698 0.56 %
Money market 956,682 14,316 2.00 818,453 13,498 2.20
Savings 793,296 3,125 0.53 568,891 1,143 0.27
Time 1,137,688 25,488 3.00 778,618 19,430 3.34
Total interest-bearing deposits 4,201,986 49,484 1.57 3,285,864 38,769 1.58
Securities sold under agreements to repurchase 1,787 30 2.27 3,361 22 0.89
Borrowings 24,403 505 2.77 9,103 170 2.49
Subordinated notes 62,846 2,756 5.86 37,261 1,326 4.76
Junior subordinated debentures issued to capital trusts 52,931 2,545 6.43 52,871 2,754 6.97
Total interest-bearing liabilities 4,343,953 $ 55,320 1.70 % 3,388,460 $ 43,041 1.70 %
Noninterest-bearing deposits 1,267,702 1,039,564
Noninterest-bearing liabilities 53,632 31,242
Total liabilities 5,665,287 4,459,266
Stockholders' Equity 733,380 572,225
Total liabilities and stockholders' equity $ 6,398,667 $ 5,031,491
Net interest income/Net interest margin (1)
$ 195,764 4.30 % $ 148,352 4.13 %
Tax-equivalent adjustment (2)
2,369 0.05 1,645 0.05
Net interest income (tax-equivalent basis)/
Net interest margin (tax-equivalent basis) (2) (3)
$ 198,133 4.35 % $ 149,997 4.18 %
Net interest rate spread (4)
3.81 % 3.63 %
Net interest-earning assets (5)
$ 1,749,074 $ 1,413,800
Ratio of interest-earning assets to interest-bearing liabilities 1.40 1.42
Cost of total deposits 1.21 % 1.20 %
Cost of funds 1.32 1.30
_________________________________________________
*Annualized measure.
(1)Net interest margin represents net interest income divided by average total interest-earning assets.
(2)On a tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.
(3)See "Non-GAAP Financial Information" for reconciliation of non-GAAP measures to their most closely comparable GAAP measures.
(4)Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(5)Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.
The following table sets forth the components of loan interest income and their contributions to the total loan yield.
Three Months Ended September 30, Nine Months Ended September 30,
2026 2025 2026 2025
(dollars in thousands) Interest Yield
Contribution * 		Interest Yield
Contribution * 		Interest Yield Contribution * Interest Yield Contribution *
Contractual interest $ 73,806 6.14 % $ 51,576 6.06 % $ 202,587 6.06 % $ 154,538 6.04 %
Loan fees 1,873 0.15 1,491 0.18 4,990 0.15 4,445 0.17
Accretion of acquired loan discounts 1,315 0.11 892 0.10 4,375 0.13 3,000 0.12
Nonaccrual interest recoveries 442 0.04 104 0.01 913 0.03 988 0.04
Net effect of cash flow hedge (41) (0.01) - - $ (65) - % $ - - %
Total loan interest income $ 77,395 6.43 % $ 54,063 6.35 % $ 212,800 6.37 % $ 162,971 6.37 %
_________________________________________________
* Annualized measure.
The following table sets forth the components of net interest income and their contributions to the net interest margin.
Three Months Ended September 30, Nine Months Ended September 30,
2026 2025 2026 2025
(dollars in thousands) Interest Net Interest Margin Contribution * Interest Net Interest Margin Contribution * Interest Net Interest Margin Contribution * Interest Net Interest Margin Contribution *
Interest income:
Contractual interest on loans $ 73,806 4.56 % $ 51,576 4.26 % $ 202,587 4.44 % $ 154,538 4.30 %
Loan fees 1,873 0.11 1,491 0.12 4,990 0.11 4,445 0.13
Accretion of acquired loan discounts 1,315 0.08 892 0.07 4,375 0.10 3,000 0.08
Nonaccrual interest recoveries 442 0.03 104 0.01 913 0.02 988 0.03
Net effect of cash flow hedge (41) - - - (65) - - -
Debt securities 12,404 0.77 8,779 0.73 34,774 0.76 24,075 0.67
Interest-bearing deposits in bank 735 0.04 1,350 0.12 3,035 0.07 3,959 0.11
Other 128 0.01 144 0.01 475 0.01 388 0.01
Total interest income 90,662 5.60 64,336 5.32 251,084 5.51 191,393 5.33
Interest expense:
Deposits 18,122 1.12 12,995 1.08 49,484 1.08 38,769 1.08
Other interest-bearing liabilities 2,219 0.13 1,355 0.11 5,836 0.13 4,272 0.12
Total interest expense 20,341 1.25 14,350 1.19 55,320 1.21 43,041 1.20
Net interest income 70,321 4.35 49,986 4.13 195,764 4.30 148,352 4.13
Tax-equivalent adjustment (1)
869 0.05 552 0.05 2,369 0.05 1,645 0.05
Net interest income (tax-equivalent) (1) (2)
$ 71,190 4.40 % $ 50,538 4.18 % $ 198,133 4.35 % $ 149,997 4.18 %
_________________________________________________
* Annualized measure.
(1)On a tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.
(2)See "Non-GAAP Financial Information" for reconciliation of non-GAAP measures to their most closely comparable GAAP measures.
Rate/Volume Analysis
The following table sets forth the dollar amount of changes in interest income and interest expense for the major categories of our interest-earning assets and interest-bearing liabilities. Information is provided for each category of interest-earning assets and interest-bearing liabilities with respect to changes attributable to volume (i.e., changes in average balances multiplied by the prior-period average rate), and changes attributable to rate (i.e., changes in average rate multiplied by prior-period average balances). For purposes of this table, changes attributable to both volume and rate that cannot be segregated have been allocated proportionately to the change due to volume and the change due to rate.
Three Months Ended September 30, 2026
vs.
Three Months Ended September 30, 2025
Nine Months Ended September 30, 2026
vs.
Nine Months Ended September 30, 2025
Increase (Decrease) Due to Total Increase (Decrease) Due to Total
(dollars in thousands) Volume Rate Volume Rate
Interest-earning assets:
Loans $ 22,571 $ 761 $ 23,332 $ 49,947 $ (118) $ 49,829
Debt securities 1,947 1,678 3,625 5,242 5,457 10,699
Deposits with banks (294) (321) (615) (136) (788) (924)
Other 46 (62) (16) 116 (29) 87
Total interest-earning assets 24,270 2,056 26,326 55,169 4,522 59,691
Interest-bearing liabilities:
Interest-bearing deposits:
Interest-bearing demand 405 305 710 889 968 1,857
Money market 973 (315) 658 2,142 (1,324) 818
Savings 256 557 813 577 1,405 1,982
Time 3,437 (491) 2,946 8,211 (2,153) 6,058
Total interest-bearing deposits 5,071 56 5,127 11,819 (1,104) 10,715
Securities sold under agreements to repurchase - - - (14) 22 8
Borrowings 73 22 95 315 20 335
Subordinated notes 733 113 846 1,068 362 1,430
Junior subordinated debentures issued to capital trusts 1 (78) (77) 3 (212) (209)
Total interest-bearing liabilities 5,878 113 5,991 13,191 (912) 12,279
Change in net interest income $ 18,392 $ 1,943 $ 20,335 $ 41,978 $ 5,434 $ 47,412
Comparison of the Three Months Ended September 30, 2026 to the Three Months Ended September 30, 2025
Net interest income for the three months ended September 30, 2026 was $70.3 million, increasing $20.3 million, or 40.7%, when compared to the three months ended September 30, 2025. The increase is primarily attributable to higher average interest-earning asset balances following the CNB merger and improved yields on debt securities and loans. Additionally, increases in acquired loan discount accretion, loan fees, and nonaccrual interest recoveries further contributed to the improvement.
Net interest margin increased to 4.35% for the three months ended September 30, 2026, compared to 4.13% for the three months ended September 30, 2025. The increase was primarily attributable to improved yields on debt securities and loans as well as a more favorable interest-earning asset mix, which were partially offset by higher funding costs. Additionally, net interest margin benefited from a 1 basis point increase in the contribution from acquired loan discount accretion and a 2 basis point increase in the contribution from nonaccrual interest recoveries, which were partially offset by a 1 basis point decrease in the contribution from loan fees.
Comparison of the Nine Months Ended September 30, 2026 to the Nine Months Ended September 30, 2025
Net interest income for the nine months ended September 30, 2026 was $195.8 million, increasing $47.4 million, or 32.0%, when compared to the nine months ended September 30, 2025. The increase is primarily attributable to higher average interest-earning asset balances following the CNB merger and improved yields on debt securities. Additionally, a $1.4 million increase in acquired loan discount accretion and a $0.5 million increase in loan fees further contributed to the improvement.
Net interest margin increased to 4.30% for the nine months ended September 30, 2026, compared to 4.13% for the nine months ended September 30, 2025. The increase was primarily attributable to improved yields on debt securities and a more favorable interest-earning asset mix. Additionally, a 2 basis point increase in the contribution of acquired loan discount accretion was offset by a 2 basis point decrease in the contribution of loan fees.
The quarterly net interest margins were as follows:
2026 2025
Three months ended:
March 31 4.20 % 4.12 %
June 30 4.32 4.14
September 30 4.35 4.13
December 31 - 4.12
From September 2025 to December 2025, the Federal Open Market Committee ("FOMC") lowered the target range for the federal funds rate with three 25 basis point reductions, setting a target range of 3.50% to 3.75% by the end of 2025. These reductions contributed to a decrease in funding costs and yields on variable rate loans while maturing fixed rate loans and securities continued to reprice at higher rates, resulting in a fairly stable net interest margin throughout 2025. Our net interest margin increased during the nine months ended September 30, 2026 driven primarily by higher asset yields and the sale of the vast majority of the CNB securities portfolio, with the proceeds used to reduce higher cost sources of funding and purchase higher yield debt securities.
In September 2026, the FOMC raised the target range for the federal funds rate by 25 basis points to 3.75% to 4.00%. Increases in market interest rates may lead to increased competition for deposits and could increase our funding costs. Alternatively, decreases in market interest rates, and potential future decreases, may put downward pressure on our net interest margin, as the negative impact on floating rate loans may not be fully offset by the positive impacts of maturing fixed rate loans and securities repricing at higher rates or potential decreases in deposit costs. Generally, we expect increases in market interest rates will increase our net interest income and net interest margin in future periods, while decreases in market interest rates may decrease our net interest income and net interest margin in future periods; however, this depends upon the timing and extent of both short-term and long-term interest rate fluctuations and may not always be the case.
Provision for Credit Losses
The following table sets forth the components of provision for credit losses for the periods indicated:
Three Months Ended September 30, Nine Months Ended September 30,
(dollars in thousands) 2026 2025 2026 2025
PROVISION FOR CREDIT LOSSES
Loans $ (593) $ 375 $ (1,018) $ 1,466
Unfunded lending-related commitments 32 221 977 232
Total provision for credit losses $ (561) $ 596 $ (41) $ 1,698
Comparison of the Three Months Ended September 30, 2026 to the Three Months Ended September 30, 2025
The Company recorded a negative provision for credit losses of $0.6 million during the three months ended September 30, 2026, compared to a $0.6 million provision during the three months ended September 30, 2025. The negative provision for credit losses during the third quarter of 2026 primarily reflects a $1.9 million decrease in required reserves driven by changes within the portfolio, which included net recoveries of $0.5 million; a $0.6 million decrease in required reserves driven by changes in the economic forecast; a $0.1 million decrease in specific reserves; and a $2.0 million increase in required reserves resulting from changes in qualitative factors.
Comparison of the Nine Months Ended September 30, 2026 to the Nine Months Ended September 30, 2025
The Company recorded a negative provision for credit losses of $41 thousand for the nine months ended September 30, 2026, compared to a $1.7 million provision during the nine months ended September 30, 2025. The 2026 negative provision for credit losses primarily reflects a $2.8 million decrease in required reserves driven by changes within the portfolio; a $1.7 million decrease in specific reserves; a $1.5 million decrease in required reserves resulting from changes in economic forecasts; and a $6.0 million increase in required reserves resulting from changes in qualitative factors.
The provision for credit losses is highly dependent on current and forecast economic conditions. Potential deterioration of economic conditions may lead to higher credit losses and adversely impact our financial condition and results of operations. The economic forecasts utilized in estimating the allowance for credit losses on loans and unfunded lending-related commitments include the unemployment rate and changes in GDP as macroeconomic variables, although other economic metrics and trends are considered on a qualitative basis.
Noninterest Income
The following table sets forth the major categories of noninterest income for the periods indicated:
Three Months Ended September 30, Nine Months Ended September 30,
(dollars in thousands) 2026 2025 $ Change % Change 2026 2025 $ Change % Change
Card income $ 3,247 $ 2,732 $ 515 18.9 % $ 9,426 $ 8,077 $ 1,349 16.7 %
Wealth management fees 3,943 3,122 821 26.3 11,624 8,789 2,835 32.3
Service charges on deposit accounts 2,680 2,093 587 28.0 7,329 5,952 1,377 23.1
Mortgage servicing 1,111 1,019 92 9.0 3,237 3,051 186 6.1
Mortgage servicing rights fair value adjustment 1,460 (514) 1,974 NM 906 (1,573) 2,479 NM
Gains on sale of mortgage loans 550 390 160 41.0 1,293 1,101 192 17.4
Realized gains (losses) on sales of securities (184) (49) (135) NM (184) (49) (135) NM
Unrealized gains (losses) on equity securities (71) (67) (4) NM 8 (36) 44 NM
Gains (losses) on foreclosed assets (67) 148 (215) NM (156) 175 (331) NM
Gains (losses) on other assets (62) (14) (48) NM (274) (88) (186) NM
Income on bank owned life insurance 229 169 60 35.5 623 500 123 24.6
Other noninterest income 1,401 820 581 70.9 3,190 2,396 794 33.1
Total $ 14,237 $ 9,849 $ 4,388 44.6 % $ 37,022 $ 28,295 $ 8,727 30.8 %
_________________________________________________
NM Not meaningful.
Comparison of the Three Months Ended September 30, 2026 to the Three Months Ended September 30, 2025
Total noninterest income for the three months ended September 30, 2026, was $14.2 million, an increase of $4.4 million, or 44.6%, from the three months ended September 30, 2025. Notable changes in noninterest income include the following:
•A $1.5 million positive mortgage servicing rights fair value adjustment included in the third quarter of 2026 results, primarily due to changes in future interest rate assumptions utilized in the valuations, compared to a $0.5 million negative mortgage servicing rights fair value adjustment included in the third quarter of 2025 results;
•A $0.8 million increase in wealth management fees, primarily driven by an increase in assets under management following the CNB merger and higher values of assets under management;
•A $0.6 million increase in service charges on deposit accounts, primarily attributable to the increase in deposit base following the CNB merger;
•A $0.5 million increase in card income, primarily attributable to debit card activity on deposit accounts acquired through the CNB merger; and
•A $0.6 million increase in other noninterest income, primarily attributable to a $0.4 million nonrecurring refund of stock repurchase excise tax as a result of a change in tax regulation.
Comparison of the Nine Months Ended September 30, 2026 to the Nine Months Ended September 30, 2025
Total noninterest income for the nine months ended September 30, 2026, was $37.0 million, an increase of $8.7 million, or 30.8%, from the nine months ended September 30, 2025. Notable changes in noninterest income include the following:
•A $2.8 million increase in wealth management fees, primarily driven by an increase in assets under management following the CNB merger and higher values of assets under management;
•A $0.9 million positive MSR fair value adjustment included in the 2026 results, primarily due to changes in future interest rate assumptions utilized in the valuations, compared to a $1.6 million negative MSR fair value adjustment included in the 2025 results;
•A $1.4 million increase in service charges on deposit accounts, primarily attributable to the increase in deposit base following the CNB merger;
•A $1.3 million increase in card income, primarily attributable to debit card activity on deposit accounts acquired through the CNB merger, and
•A $0.8 million increase in other noninterest income, primarily attributable to a $0.4 million nonrecurring refund of stock repurchase excise tax as a result of a change in tax regulation and the addition of CNB's operations.
Noninterest Expense
The following table sets forth the major categories of noninterest expense for the periods indicated:
Three Months Ended September 30, Nine Months Ended September 30,
(dollars in thousands) 2026 2025 $ Change % Change 2026 2025 $ Change % Change
Salaries $ 20,988 $ 16,351 $ 4,637 28.4 % $ 66,030 $ 49,856 $ 16,174 32.4 %
Employee benefits 4,493 3,314 1,179 35.6 12,598 10,179 2,419 23.8
Occupancy of bank premises 3,933 2,826 1,107 39.2 10,566 7,922 2,644 33.4
Furniture and equipment 861 737 124 16.8 2,400 1,757 643 36.6
Data processing 4,130 2,791 1,339 48.0 19,687 8,195 11,492 140.2
Marketing and customer relations 1,222 1,035 187 18.1 3,752 3,199 553 17.3
Amortization of intangible assets 1,455 694 761 109.7 3,797 2,083 1,714 82.3
Loss on extinguishment of debt - 391 (391) NM - 391 (391) NM
FDIC insurance 723 561 162 28.9 1,988 1,674 314 18.8
Loan collection and servicing 640 264 376 142.4 1,891 1,007 884 87.8
Foreclosed assets 43 62 (19) (30.6) 143 134 9 6.7
Other noninterest expense 4,175 3,482 693 19.9 14,694 9,960 4,734 47.5
Total $ 42,663 $ 32,508 $ 10,155 31.2 % $ 137,546 $ 96,357 $ 41,189 42.7 %
Comparison of the Three Months Ended September 30, 2026 to the Three Months Ended September 30, 2025
Total noninterest expense for the three months ended September 30, 2026, was $42.7 million, an increase of $10.2 million, or 31.2%, from the three months ended September 30, 2025. Notable changes in noninterest expense include the following:
•Acquisition-related expenses of $1.0 million recognized during the third quarter of 2026 were absent during the third quarter of 2025; and
•Excluding acquisition-related expenses, the $9.2 million increase in noninterest expense was primarily attributable to the addition of CNB's operations, including a $5.8 million increase in salaries and employee benefits, which were also driven higher by annual merit increases and higher medical benefits costs.
Comparison of the Nine Months Ended September 30, 2026 to the Nine Months Ended September 30, 2025
Total noninterest expense for the nine months ended September 30, 2026, was $137.5 million, an increase of $41.2 million, or 42.7%, from the nine months ended September 30, 2025. Notable changes in noninterest expense include the following:
•Acquisition-related expenses of $16.9 million recognized during the nine months ended September 30, 2026 were absent from the nine months ended September 30, 2025; and
•Excluding acquisition-related expenses, the $24.3 million increase in noninterest expenses was primarily attributable to the addition of CNB's operations, driven by a $14.6 million increase in salaries and employee benefits, as well as increases in occupancy, data processing, and marketing expenses.
Income Taxes
During the three months ended September 30, 2026 and 2025, we recorded income tax expense of $11.1 million, or an effective tax rate of 26.1%, and $7.0 million, or an effective tax rate of 26.1%, respectively. During the nine months ended September 30, 2026 and 2025, we recorded income tax expense of $24.8 million, or an effective tax rate of 26.1%, and $20.5 million, or an effective tax rate of 26.1%, respectively.
FINANCIAL CONDITION
(dollars in thousands, except per share data) September 30,
2026 		December 31,
2025 		$ Change % Change
Cash and cash equivalents $ 126,260 $ 122,269 $ 3,991 3.3 %
Debt securities available-for-sale, at fair value 1,065,551 813,101 252,450 31.0
Debt securities held-to-maturity 417,491 458,746 (41,255) (9.0)
Loans held for sale 2,980 1,263 1,717 135.9
Loans, before allowance for credit losses 4,782,743 3,456,209 1,326,534 38.4
Less: allowance for credit losses 60,475 41,690 18,785 45.1
Loans, net of allowance for credit losses 4,722,268 3,414,519 1,307,749 38.3
Goodwill 81,949 59,820 22,129 37.0
Intangible assets 41,403 15,117 26,286 173.9
Other assets 261,425 186,555 74,870 40.1
Total assets $ 6,719,327 $ 5,071,390 $ 1,647,937 32.5 %
Total deposits $ 5,752,432 $ 4,359,263 $ 1,393,169 32.0 %
Borrowings 12,210 12,301 (91) (0.7)
Subordinated notes 84,051 - 84,051 NM
Junior subordinated debentures 52,953 52,909 44 0.1
Other liabilities 63,590 31,419 32,171 102.4
Total liabilities 5,965,236 4,455,892 1,509,344 33.9
Total stockholders' equity 754,091 615,498 138,593 22.5
Total liabilities and stockholders' equity $ 6,719,327 $ 5,071,390 $ 1,647,937 32.5 %
Tangible assets (1)
$ 6,595,975 $ 4,996,453 $ 1,599,522 32.0 %
Tangible common equity (1)
630,739 540,561 90,178 16.7
Core deposits (1)
$ 5,367,916 $ 4,157,898 $ 1,210,018 29.1 %
Share and Per Share Information
Book value per share $ 20.74 $ 19.58 $ 1.16 5.9 %
Tangible book value per share (1)
17.34 17.20 0.14 0.8
Shares of common stock outstanding 36,365,612 31,431,924
Balance Sheet Ratios
Loan to deposit ratio 83.14 % 79.28 %
Core deposits to total deposits (1)
93.32 95.38
Stockholders' equity to total assets 11.22 12.14
Tangible common equity to tangible assets (1)
9.56 10.82
_________________________________________________
NM Not meaningful.
(1)See "Non-GAAP Financial Information" for reconciliation of non-GAAP measures to their most closely comparable GAAP measures.
Notable changes in our consolidated balance sheet include the following:
•The CNB merger added $1.81 billion in total assets, $1.30 billion in loans held for investment, and $1.52 billion in total deposits;
•Following the CNB merger, $313.1 million of the debt securities acquired from CNB were sold with the sales proceeds used to reduce higher cost sources of funding and purchase higher yield debt securities;
•Excluding the impact of the CNB merger, a $123.7 million decrease in total deposits was primarily attributable to the expected run-off of higher cost time deposit balances as well as a decrease in noninterest-bearing deposits;
•Wealth management customer reciprocal money market deposits increased $55.1 million, with $50.0 million held off-balance sheet at December 31, 2025 moved on-balance sheet during 2026; and
•A private placement of $85.0 million of 5.75% fixed-to-floating rate subordinated notes due in 2036 was completed in March 2026.
Loan Portfolio
The following table sets forth the composition of the loan portfolio, excluding loans held-for-sale, by type of loan.
September 30, 2026 December 31, 2025
(dollars in thousands) Balance Percent Balance Percent
Commercial and industrial $ 509,973 10.7 % $ 399,760 11.6 %
Commercial real estate - owner occupied 515,800 10.8 320,434 9.3
Commercial real estate - non-owner occupied 1,136,065 23.7 937,094 27.0
Construction and land development 476,352 10.0 280,254 8.1
Multi-family 648,969 13.6 544,941 15.8
One-to-four family residential 583,266 12.2 445,463 12.9
Agricultural and farmland 595,485 12.4 275,251 8.0
Municipal, consumer, and other 316,833 6.6 253,012 7.3
Loans, before allowance for credit losses 4,782,743 100.0 % 3,456,209 100.0 %
Allowance for credit losses (60,475) (41,690)
Loans, net of allowance for credit losses $ 4,722,268 $ 3,414,519
Loans, before allowance for credit losses were $4.78 billion at September 30, 2026, an increase of $1.33 billion, or 38.4%, from December 31, 2025. Excluding the impact of the CNB merger, loans increased by $30.2 million with the following notable changes:
•An $8.0 million reduction on two commercial and industrial lines of credit that funded shortly before and paid off after December 31, 2025;
•Increase in the municipal, consumer, and other category was primarily attributable to a $39.0 million increase in loans to nondepository institutions;
•Several larger payoffs due to refinances across multiple loan categories; and
•Completed construction projects were transferred from construction and land development to other categories, primarily in the commercial real estate - non-owner occupied category.
Commercial Real Estate Portfolios
Commercial real estate - owner occupied loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The commercial real estate - owner occupied portfolio composition, segmented by the owner's business classification, as of September 30, 2026 was as follows:
September 30, 2026
(dollars in thousands) Balance Substandard
Risk Rating
Accommodation and food services $ 93,351 $ 2,275
Manufacturing 58,354 2,662
Real estate, rental, and leasing 55,671 5,337
Health care and social assistance 41,747 1,730
Auto repair and dealers 35,342 66
Retail trade 30,300 84
Grain elevators 24,458 -
Construction 22,865 677
Arts, entertainment, and recreation 21,186 1,359
Other services (except public administration) 20,557 -
Wholesale trade 17,977 553
Professional, scientific, and technical services 10,709 -
Administrative and support services 10,632 -
Education services 9,104 1,127
Agriculture, forestry, fishing, and hunting 5,939 -
Finance and insurance 2,693 -
Other 54,915 1,727
Total $ 515,800 $ 17,597
Commercial real estate - non-owner occupied loans are primarily made based on projected cash flows from the rental or sale of the underlying collateral. The commercial real estate - non-owner occupied portfolio composition, segmented by the property type, as of September 30, 2026 was as follows:
September 30, 2026
(dollars in thousands) Balance Substandard
Risk Rating
Weighted Average LTV(1)
Retail $ 228,964 $ 7,001 52 %
Warehouse and manufacturing 213,400 171 59
Office 180,431 2,981 57
Hotel 161,173 4,970 56
Senior Living 135,080 4,010 57
Mixed use (commercial and residential) 82,652 150 61
Medical office 38,446 - 58
Gas station 24,219 - 58
Restaurant and bar 23,342 38 58
Auto repair and dealers 22,690 38 55
Other 25,668 - 58
Total $ 1,136,065 $ 19,359 57 %
_________________________________________________
(1) Weighted average LTV is based on the most recent appraisals available, which are generally obtained at the time of origination.
Multi-family loans totaled $649.0 million as of September 30, 2026, and are primarily made based on projected cash flows from the rental of the underlying collateral. As of September 30, 2026, multi-family loans had a weighted average LTV of 60%, based on the most recent appraisals available, which are generally obtained at the time of origination.
Construction and land development loans totaled $476.4 million as of September 30, 2026. The majority of these loans consist of multi-family and one-to-four family residential construction projects either to be sold upon completion or held for long-term investment, but also include other property types that may be rented, sold, or owner occupied upon completion. Construction and land development loans are primarily based on projected cash flows from the rental or sale of the underlying collateral, or based on the identified cash flows of the borrower.
Management's disciplined approach to credit risk management is exercised through portfolio diversification, robust underwriting policies, and routine loan monitoring practices in order to identify and mitigate any credit weakness as early as possible. Management continually monitors and evaluates commercial real estate concentrations by property class, industry, and relative to the Bank's regulatory capital to remain in line with board-established limits and adapt to changing industry conditions. A centralized credit underwriting group, independent of the originating lender, evaluates a vast majority of the commercial exposures over $750 thousand annually, if not more frequently, through a standardized credit review process to ensure uniform application of policies and procedures as well as analyze credit performance. All loans require appropriate internal approval, with a centralized credit approval group reviewing the vast majority of exposures over $1 million. Additionally, more than 45% of loan commitments are reviewed on a rolling 24 month basis between a robust internal review process and an annual third-party review of a sample of the portfolio.
For commercial real estate - non-owner occupied and multi-family loans over $1 million, we evaluate, on a quarterly basis, the impact of current interest rates on the underlying cash flows of the properties securing these loans, based on the most recent cash flow data available. Individual credits with a maturity scheduled within the next five quarters that are presenting stress under current renewal terms are identified, so that ample time is available to develop solutions to manage credit risk. This testing is completed in addition to the various sensitivity testing completed at the initial extension of credit.
Loans to non-depository financial institutions are included within the municipal, consumer, and other category, and totaled $121.9 million as of September 30, 2026. Loans to non-depository financial institutions are typically collateralized by assignments of promissory notes financing commercial real estate - non-owner occupied properties.
Loan Portfolio Maturities
The following table summarizes the scheduled maturities of the loan portfolio as of September 30, 2026. Demand loans (loans having no stated repayment schedule or maturity) and overdraft loans are reported as being due in one year or less.
(dollars in thousands) 1 Year
or Less 		After 1 Year
Through
5 Years 		After 5 Years
Through
15 Years 		After
15 Years 		Total
Commercial and industrial $ 264,517 $ 177,166 $ 68,290 $ - $ 509,973
Commercial real estate - owner occupied 72,014 196,777 153,219 93,790 515,800
Commercial real estate - non-owner occupied 292,769 632,267 147,785 63,244 1,136,065
Construction and land development 238,575 206,901 24,962 5,914 476,352
Multi-family 131,165 399,073 75,512 43,219 648,969
One-to-four family residential 83,052 177,263 87,380 235,571 583,266
Agricultural and farmland 235,691 166,829 98,889 94,076 595,485
Municipal, consumer, and other 128,743 81,425 72,387 34,278 316,833
Total $ 1,446,526 $ 2,037,701 $ 728,424 $ 570,092 $ 4,782,743
The following table summarizes loans maturing after one year, segregated into variable and fixed interest rates.
Variable Interest Rates
(dollars in thousands) Repricing
1 Year
or Less 		Repricing
After
1 Year 		Total
Variable
Interest Rates 		Predetermined
(Fixed)
Interest Rates 		Total
Commercial and industrial $ 62,016 $ 27,769 $ 89,785 $ 155,671 $ 245,456
Commercial real estate - owner occupied 103,633 159,583 263,216 180,570 443,786
Commercial real estate - non-owner occupied 148,612 141,801 290,413 552,883 843,296
Construction and land development 114,131 17,734 131,865 105,912 237,777
Multi-family 73,833 62,526 136,359 381,445 517,804
One-to-four family residential 125,886 150,143 276,029 224,185 500,214
Agricultural and farmland 68,593 118,680 187,273 172,521 359,794
Municipal, consumer, and other 21,201 33,497 54,698 133,392 188,090
Total $ 717,905 $ 711,733 $ 1,429,638 $ 1,906,579 $ 3,336,217
Nonperforming Assets
Our nonperforming loans and nonperforming assets were as follows:
(dollars in thousands) September 30, 2026 December 31, 2025
NONPERFORMING ASSETS
Nonaccrual $ 10,098 $ 7,556
Past due 90 days or more, still accruing - -
Total nonperforming loans 10,098 7,556
Foreclosed assets 656 1,126
Total nonperforming assets $ 10,754 $ 8,682
Nonperforming loans that are wholly or partially guaranteed by the U.S. Government $ 2,350 $ 2,170
Allowance for credit losses $ 60,475 $ 41,690
Loans, before allowance for credit losses 4,782,743 3,456,209
CREDIT QUALITY RATIOS
Allowance for credit losses to loans, before allowance for credit losses 1.26 % 1.21 %
Allowance for credit losses to nonaccrual loans 598.88 551.75
Allowance for credit losses to nonperforming loans 598.88 551.75
Nonaccrual loans to loans, before allowance for credit losses 0.21 0.22
Nonperforming loans to loans, before allowance for credit losses 0.21 0.22
Nonperforming assets to total assets 0.16 0.17
Nonperforming assets to loans, before allowance for credit losses, and foreclosed assets 0.22 0.25
Total nonperforming assets were $10.8 million at September 30, 2026, an increase of 23.9% when compared to $8.7 million at December 31, 2025. The $2.1 million increase in nonperforming assets from December 31, 2025 was primarily attributable to the CNB merger, which added $6.1 million in nonaccrual loans and was mostly offset by paydowns and payoffs in the construction and land development and agricultural and farmland categories. Additionally, of the $10.1 million of nonperforming loans held as of September 30, 2026, $2.4 million are either wholly or partially guaranteed by the U.S. Government.
Risk Classification of Loans
Our risk classifications of loans were as follows:
(dollars in thousands) September 30, 2026 December 31, 2025
Pass $ 4,421,968 $ 3,241,912
Pass-watch 221,696 131,766
Special mention 30,873 11,788
Substandard 108,206 70,743
Total $ 4,782,743 $ 3,456,209
Loans rated pass-watch or worse increased $146.5 million, or 68.4%, from December 31, 2025 to September 30, 2026, primarily attributable to loans acquired in the CNB merger, including $113.0 million of pass-watch loans, $18.0 million of special mention loans, and $20.7 million of substandard loans.
Net Charge-offs (Recoveries)
The following table summarizes net charge-offs (recoveries) to average loans by loan category.
Three Months Ended September 30, Nine Months Ended September 30,
(dollars in thousands) 2026 2025 2026 2025
Net charge-offs (recoveries)
Commercial and industrial $ (567) $ (61) $ (87) $ 878
Commercial real estate - owner occupied (8) 111 241 79
Commercial real estate - non-owner occupied - - (102) -
Construction and land development - - (69) 4
Multi-family (9) - (16) 43
One-to-four family residential (46) (26) (129) 404
Agricultural and farmland (14) 4 (42) (43)
Municipal, consumer, and other 140 106 358 245
Total $ (504) $ 134 $ 154 $ 1,610
Average loans
Commercial and industrial $ 515,303 $ 412,004 $ 503,018 $ 425,942
Commercial real estate - owner occupied 505,706 315,285 467,535 320,283
Commercial real estate - non-owner occupied 1,135,583 915,168 1,081,442 902,389
Construction and land development 449,653 295,144 410,517 343,970
Multi-family 665,275 485,452 628,690 446,911
One-to-four family residential 588,308 444,420 562,671 453,116
Agricultural and farmland 592,159 275,064 521,745 278,044
Municipal, consumer, and other 319,713 237,100 292,065 248,422
Total $ 4,771,700 $ 3,379,637 $ 4,467,683 $ 3,419,077
Charge-offs (recoveries) to average loans *
Commercial and industrial (0.44) % (0.06) % (0.02) % 0.28 %
Commercial real estate - owner occupied (0.01) 0.14 0.07 0.03
Commercial real estate - non-owner occupied - - (0.01) -
Construction and land development - - (0.02) -
Multi-family (0.01) - - 0.01
One-to-four family residential (0.03) (0.02) (0.03) 0.12
Agricultural and farmland (0.01) 0.01 (0.01) (0.02)
Municipal, consumer, and other 0.17 0.18 0.16 0.13
Total (0.04) % 0.02 % - % 0.06 %
_________________________________________________
* Annualized measure.
The net charge-offs (recoveries) to average total loans ratio has remained low for several years. While we believe our continuous credit monitoring and collection efforts have resulted in lower levels of credit losses, we also recognize that the relatively stable economic conditions after the COVID-19 pandemic have also contributed to reduced credit losses.
Securities
The Company's investment policy emphasizes safety of the principal, liquidity needs, expected returns, cash flow targets, and consistency with our interest rate risk management strategy. The composition and maturities of the debt securities portfolio as of September 30, 2026, are summarized in the following table. Maturities are based on the final contractual payment dates, and do not reflect the impact of prepayments or early redemptions that may occur. Security yields have not been adjusted to a tax-equivalent basis.
September 30, 2026
Available-for-Sale Held-to-Maturity Total
(dollars in thousands) Amortized
Cost 		Weighted
Average
Yield 		Amortized
Cost 		Weighted
Average
Yield 		Amortized
Cost 		Weighted
Average
Yield
Due in 1 year or less
U.S. Treasury $ 29,881 1.21 % $ - - % $ 29,881 1.21 %
U.S. government agency 16,178 2.45 5,000 3.25 21,178 2.64
Municipal 11,022 2.57 3,285 2.98 14,307 2.66
Mortgage-backed:
Agency residential 315 2.87 3,791 1.57 4,106 1.67
Agency commercial 12,948 1.86 4,859 3.40 17,807 2.28
Total $ 70,344 1.83 % $ 16,935 2.86 % $ 87,279 2.03 %
Due after 1 year through 5 years
U.S. Treasury $ 49,997 1.49 % $ - - % $ 49,997 1.49 %
U.S. government agency 8,213 1.48 52,949 2.43 61,162 2.30
Municipal 86,901 1.72 15,682 3.25 102,583 1.95
Mortgage-backed:
Agency residential 24,212 1.97 2,359 3.50 26,571 2.10
Agency commercial 62,062 1.77 171,258 1.84 233,320 1.82
Corporate 9,589 3.97 - - 9,589 3.97
Total $ 240,974 1.79 % $ 242,248 2.08 % $ 483,222 1.93 %
Due after 5 years through 10 years
U.S. government agency $ 127,911 4.47 % $ 25,564 2.70 % $ 153,475 4.17 %
Municipal 52,530 2.48 4,869 3.68 57,399 2.58
Mortgage-backed:
Agency residential 31,151 3.22 2,398 3.14 33,549 3.21
Agency commercial 7,780 4.20 36,544 2.35 44,324 2.67
Corporate 40,000 6.55 - - 40,000 6.55
Total $ 259,372 4.23 % $ 69,375 2.60 % $ 328,747 3.88 %
Due after 10 years
Municipal $ 67,886 3.72 % $ 1,927 3.47 % $ 69,813 3.71 %
Mortgage-backed:
Agency residential 441,547 4.64 55,488 3.66 497,035 4.53
Agency commercial 62,496 3.90 31,518 2.06 94,014 3.28
Corporate 4,430 6.06 - - 4,430 6.06
Total $ 576,359 4.46 % $ 88,933 3.08 % $ 665,292 4.28 %
Total
U.S. Treasury $ 79,878 1.39 % $ - - % $ 79,878 1.39 %
U.S. government agency 152,302 4.09 83,513 2.56 235,815 3.55
Municipal 218,339 2.56 25,763 3.31 244,102 2.64
Mortgage-backed:
Agency residential 497,225 4.42 64,036 3.51 561,261 4.32
Agency commercial 145,286 2.82 244,179 1.98 389,465 2.29
Corporate 54,019 6.05 - - 54,019 6.05
Total $ 1,147,049 3.69 % $ 417,491 2.41 % $ 1,564,540 3.35 %
SOURCES OF FUNDS
Deposits
Management continues to focus on growing deposits through the Company's relationship-driven banking philosophy and community-focused marketing programs.
The following table sets forth the distribution of average deposits, by account type:
Three Months Ended September 30, Percent
Change in
Average
Balance
2026 2025
(dollars in thousands) Average
Balance
Percent of
Total Deposits
Weighted
Average Cost *
Average
Balance
Percent of
Total Deposits
Weighted
Average Cost *
Noninterest-bearing $ 1,314,588 22.8 % - % $ 1,028,608 23.8 % - % 27.8 %
Interest-bearing demand 1,358,462 23.7 0.70 1,113,391 25.8 0.60 22.0
Money market 1,018,285 17.7 2.06 833,812 19.3 2.21 22.1
Savings 841,588 14.6 0.57 568,001 13.2 0.28 48.2
Time 1,222,696 21.2 2.99 771,360 17.9 3.23 58.5
Total deposits $ 5,755,619 100.0 % 1.25 % $ 4,315,172 100.0 % 1.19 % 33.4 %
Nine Months Ended September 30, Percent
Change in
Average
Balance
2026 2025
(dollars in thousands) Average
Balance
Percent of
Total Deposits
Weighted
Average Cost *
Average
Balance
Percent of
Total Deposits
Weighted
Average Cost *
Noninterest-bearing $ 1,267,702 23.2 % - % $ 1,039,564 24.0 % - % 21.9 %
Interest-bearing demand 1,314,320 24.0 0.67 1,119,902 25.9 0.56 17.4
Money market 956,682 17.5 2.00 818,453 18.9 2.20 16.9
Savings 793,296 14.5 0.53 568,891 13.2 0.27 39.4
Time 1,137,688 20.8 3.00 778,618 18.0 3.34 46.1
Total deposits $ 5,469,688 100.0 % 1.21 % $ 4,325,428 100.0 % 1.20 % 26.5 %
_________________________________________________
*Annualized measure.
The average balance of deposits increased 26.5% from the nine months ended September 30, 2025 to the nine months ended September 30, 2026 primarily due to the CNB acquisition, which added $996.5 million of non-maturity deposits and $520.4 million of time deposits on March 1, 2026.
The following table sets forth time deposits by remaining maturity as of September 30, 2026:
(dollars in thousands) 3 Months or
Less 		Over 3 through
6 Months 		Over 6 through
12 Months 		Over
12 Months 		Total
Time deposits:
Amounts less than $100,000 $ 165,249 $ 129,728 $ 120,098 $ 43,313 $ 458,388
Amounts of $100,000 or more but less than $250,000 142,417 109,694 103,201 26,164 381,476
Amounts of $250,000 or more 91,365 141,979 140,871 10,301 384,516
Total time deposits $ 399,031 $ 381,401 $ 364,170 $ 79,778 $ 1,224,380
As of September 30, 2026 and December 31, 2025, the Bank's uninsured deposits were estimated to be $1.37 billion and $928.7 million, respectively.
LIQUIDITY
Bank Liquidity
The overall objective of bank liquidity management is to ensure the availability of sufficient cash funds to meet all financial commitments and to take advantage of investment opportunities. The Bank manages liquidity in order to meet deposit withdrawals on demand or at contractual maturity, to repay borrowings as they mature, and to fund new loans and investments as opportunities arise.
The Bank continuously monitors its liquidity positions to ensure that assets and liabilities are managed in a manner that will meet all of our short-term and long-term cash requirements. The Bank manages its liquidity position to meet our daily cash flow needs, while maintaining an appropriate balance between assets and liabilities to meet the return on investment objectives. The Bank also monitors liquidity requirements in light of interest rate trends, changes in the economy, the scheduled maturity and interest rate sensitivity of the investment and loan portfolios and deposits, and regulatory capital requirements.
As part of the Bank's liquidity management strategy, the Bank is also focused on minimizing costs of liquidity and attempts to decrease these costs by promoting noninterest-bearing and low-cost deposits. While the Bank does not control the types of deposit instruments our clients choose, those choices can be influenced with the rates and the deposit specials offered.
Our on-balance sheet sources of liquidity included cash and cash equivalents as well as unpledged securities which may be sold or pledged as collateral to meet liquidity needs. As of September 30, 2026 and December 31, 2025, our on-balance sheet sources of liquidity included the following:
(dollars in thousands) September 30, 2026 December 31, 2025
Cash and cash equivalents $ 126,260 $ 122,269
Fair value of unpledged securities 933,903 845,524
Total cash and unpledged securities $ 1,060,163 $ 967,793
Additional sources of liquidity include borrowings from the FHLB, the Federal Reserve discount window, and federal fund lines of credit. Interest is charged on outstanding borrowings at the prevailing market rate. As of September 30, 2026, our current borrowings and additional available borrowing capacity were as follows:
September 30, 2026
(dollars in thousands) Current Balance Additional
Available Capacity
FHLB $ 12,210 $ 1,482,782
Federal Reserve - 105,056
Federal funds lines of credit - 80,000
Total $ 12,210 $ 1,667,838
Furthermore, the Bank has the option to utilize brokered deposits as an additional source of liquidity, as needed.
As of September 30, 2026, management believed the current liquidity and available sources of liquidity are adequate to meet all of the reasonably foreseeable short-term and intermediate-term demands of the Bank. As of September 30, 2026, the Bank had no material commitments for capital expenditures.
Holding Company Liquidity
The Holding Company, or HBT Financial, Inc. on an unconsolidated basis, is a corporation separate and apart from the Bank and, therefore, it must provide for its own liquidity. As of September 30, 2026, the Holding Company had cash and cash equivalents of $29.4 million.
The Holding Company's main source of funding is dividends declared and paid to it by the Bank. Dividends paid by the Bank to the Holding Company would be prohibited if the effect thereof would cause the Bank's capital to be reduced below applicable minimum capital requirements. Management believes that such limitations will not impact the Holding Company's ability to meet its ongoing short-term or intermediate-term cash obligations. During the three months ended September 30, 2026 and 2025, the Bank paid $17.0 million and $25.0 million in dividends to the Holding Company, respectively. During the nine months ended September 30, 2026 and 2025, the Bank paid $76.0 million and $62.5 million in dividends to the Holding Company, respectively.
The liquidity needs of the Holding Company on an unconsolidated basis consist primarily of operating expenses, interest payments on debt, and shareholder distributions in the form of dividends and stock repurchases. During the three months ended September 30, 2026 and 2025, holding company operating expenses consisted of interest expense of $2.1 million and $1.3 million, respectively, and other operating expenses of $1.8 million and $1.5 million, respectively. During the nine months ended September 30, 2026 and 2025, holding company operating expenses consisted of interest expense of $5.3 million and $4.1 million, respectively, and other operating expenses of $6.4 million and $3.7 million, respectively. Additionally, the Holding Company paid $9.1 million and $6.7 million of dividends to stockholders during the three months ended September 30, 2026 and 2025, respectively, and paid $24.8 million and $20.0 million of dividends to stockholders during the nine months ended September 30, 2026 and 2025, respectively.
As of September 30, 2026, management was not aware of any known trends, events or uncertainties that had or were reasonably likely to have a material impact on the Holding Company's liquidity.
As of September 30, 2026, management believed the current liquidity and available sources of liquidity are adequate to meet all of the reasonably foreseeable short-term and intermediate-term demands of the Holding Company, including the cash consideration of the pending Tri-County acquisition anticipated to be paid early in the first quarter of 2027. As of September 30, 2026, the Holding Company had no material commitments for capital expenditures.
CAPITAL RESOURCES
The overall objectives of capital management are to ensure the availability of sufficient capital to support loan, deposit and other asset and liability growth opportunities and to maintain capital to absorb unforeseen losses or write-downs that are inherent in the business risks associated with the banking industry. The Company seeks to balance the need for higher capital levels to address such unforeseen risks and the goal to achieve an adequate return on the capital invested by our stockholders.
Regulatory Capital Requirements
The Company and Bank are each subject to various regulatory capital requirements administered by federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the financial statements of the Company and the Bank.
In addition to meeting minimum capital requirements, the Company and the Bank must also maintain a "capital conservation buffer" to avoid becoming subject to restrictions on capital distributions and certain discretionary bonus payments to management. The capital conservation buffer requirement is 2.5% of risk-weighted assets.
As of September 30, 2026 and December 31, 2025, the Company and the Bank met all capital adequacy requirements to which they were subject. As of those dates, the Bank was "well capitalized" under the regulatory prompt corrective action provisions.
The following table sets forth actual capital ratios of the Company and the Bank as of the dates indicated, as well as the minimum ratios for capital adequacy purposes with the capital conservation buffer, and the minimum ratios to be well capitalized under regulatory prompt corrective action provisions.
September 30,
2026 		December 31,
2025
For Capital
Adequacy Purposes
With Capital
Conservation Buffer (1)
To Be Well
Capitalized Under
Prompt Corrective
Action Provisions (2)
Consolidated HBT Financial, Inc.
Total Capital (to Risk Weighted Assets) 16.48 % 16.82 % 10.50 % N/A
Tier 1 Capital (to Risk Weighted Assets) 13.88 15.72 8.50 N/A
Common Equity Tier 1 Capital (to Risk Weighted Assets) 12.94 14.42 7.00 N/A
Tier 1 Capital (to Average Assets) 11.33 12.26 4.00 N/A
Heartland Bank and Trust Company
Total Capital (to Risk Weighted Assets) 15.97 % 16.52 % 10.50 % 10.00 %
Tier 1 Capital (to Risk Weighted Assets) 14.92 15.42 8.50 8.00
Common Equity Tier 1 Capital (to Risk Weighted Assets) 14.92 15.42 7.00 6.50
Tier 1 Capital (to Average Assets) 12.18 12.02 4.00 5.00
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(1)The Tier 1 capital to average assets ratio (known as the "leverage ratio") is not impacted by the capital conservation buffer.
(2)The prompt corrective action provisions are not applicable to bank holding companies.
N/A Not applicable.
As of September 30, 2026, management was not aware of any known trends, events or uncertainties that had or were reasonably likely to have a material impact on the Company's capital resources.
Cash Dividends
During 2025, the Company paid quarterly cash dividends of $0.21 per share. In January 2026, the Company announced an increase of $0.02 and paid a $0.23 per share dividend during the first and second quarters of 2026. In July 2026, the Company announced an increase of $0.02 and paid a $0.25 per share dividend during the third quarter of 2026.
Stock Repurchase Program
The Company did not repurchase any shares of its common stock during the three months ended September 30, 2026. The Company's Board of Directors has authorized the repurchase of up to $30.0 million of its common stock under its stock repurchase program in effect until January 1, 2027. As of September 30, 2026, the Company had $14.0 million remaining under the current stock repurchase authorization.
OFF-BALANCE SHEET ARRANGEMENTS
As a financial services provider, the Bank routinely is a party to various financial instruments with off-balance sheet risks, such as commitments to extend credit, standby letters of credit, unused lines of credit, commitments to sell loans, and interest rate swaps. While these contractual obligations represent our future cash requirements, a significant portion of commitments to extend credit may expire without being drawn upon. Such commitments are subject to the same credit policies and approval process afforded to loans originated by the Bank. For additional information, see "Note 16 - Commitments and Contingencies" to the consolidated financial statements.
CRITICAL ACCOUNTING ESTIMATES
Critical accounting estimates are those that are critical to the portrayal and understanding of the Company's financial condition and results of operations and require management to make assumptions that are difficult, subjective, or complex. These estimates involve judgments, assumptions, and uncertainties that are susceptible to change. In the event that different assumptions or conditions were to prevail, and depending on the severity of such changes, the possibility of a materially different financial condition or materially different results of operations is a reasonable likelihood. Further, changes in accounting standards could impact the Company's critical accounting estimates. The following accounting estimates could be deemed critical:
Allowance for Credit Losses
The allowance for credit losses reflects an estimate of lifetime expected credit losses. Measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts. The allowance for credit losses is established through a provision for credit losses which is charged to expense. Additions to the allowance for credit losses are expected to maintain the adequacy of the total allowance for credit losses. Loan losses are charged off against the allowance for credit losses when the Company determines the loan balance to be uncollectible. Cash received on previously charged off amounts is recorded as a recovery to the allowance for credit losses.
Management uses the discounted cash flow method to estimate expected credit losses for all loan categories, except for consumer loans where the weighted average remaining maturity method is utilized. The Company uses regression analysis of historical internal and peer data to determine which macroeconomic variables are most closely correlated with credit losses, such as the unemployment rate and changes in GDP. Management leverages economic projections from a reputable third party to form its economic forecasts with a reversion to historical averages for periods beyond a reasonable and supportable forecast period.
Nonaccrual loans and loans which do not share risk characteristics with other loans in the pool are individually evaluated to determine expected credit losses.
The allowance for credit losses on unfunded commitments is estimated in the same manner as the associated loans, adjusted for anticipated funding rate.
Fair Value of Assets Acquired and Liabilities Assumed in Business Combinations
Business combinations are accounted for using the acquisition method of accounting. Under the acquisition method of accounting, assets acquired and liabilities assumed are recorded at their estimated fair value on the acquisition date. Estimating such fair values may require highly subjective assumptions or the use of a valuation specialist. In the CNB acquisition, the fair value for loans was the most significant estimate and relatively small changes in assumptions used in this estimate could result in a materially different conclusion.
The fair value for loans was based on a discounted cash flow methodology that considered credit loss and prepayment expectations, market interest rates and other market factors, such as liquidity, from the perspective of a market participant. Loan cash flows were generated on an individual loan basis. The probability of default, loss given default, exposure at default, and prepayment assumptions are key factors in this analysis.
NON-GAAP FINANCIAL INFORMATION
This Quarterly Report on Form 10-Q contains certain financial information determined by methods other than those in accordance with GAAP. Management believes that it is a standard practice in the banking industry to present these non-GAAP financial measures, and accordingly believes that providing these measures may be useful for peer comparison purposes. These disclosures should not be viewed as substitutes for the results determined to be in accordance with GAAP; nor are they necessarily comparable to non-GAAP financial measures that may be presented by other companies. See our reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures below.
Non-GAAP Financial Measure Definition How the Measure Provides Useful Information to Investors
Adjusted Net Income
•Net income, with the following adjustments:
-excludes acquisition expenses,
-excludes branch closure expenses,
-excludes net earnings (losses) from closed or sold operations,
-losses on extinguishment of debt,
-excludes gains (losses) on closed branch premises,
-excludes realized gains (losses) on sales of securities,
-excludes mortgage servicing rights fair value adjustment, and
-the income tax effect of these pre-tax adjustments.
•Enhances comparisons to prior periods and, accordingly, facilitates the development of future projections and earnings growth prospects.
•We also sometimes refer to ratios that include Adjusted Net Income, such as:
-Adjusted Return on Average Assets, which is Adjusted Net Income divided by average assets.
-Adjusted Return on Average Equity, which is Adjusted Net Income divided by average equity.
-Adjusted Earnings Per Share - Basic, which is Adjusted Net Income divided by weighted average common shares outstanding.
-Adjusted Earnings Per Share - Diluted, which is Adjusted Net Income divided by weighted average common shares outstanding, including all dilutive potential shares.
•Adjusted Return on Average Assets is a performance measure utilized in determining executive compensation.
Pre-Provision Net Revenue
•Net interest income, plus noninterest income, less noninterest expense.
•Provides investors with information regarding profitability excluding provision for credit losses and income tax expense, which may fluctuate from period to period.
•We also sometimes refer to measures that include Pre-Provision Net Revenue, such as:
-Adjusted Pre-Provision Net Revenue which reflects the adjustments considered in Adjusted Net Income, as necessary.
-Pre-Provision Net Revenue Less Charge-offs (Recoveries).
-Adjusted Pre-Provision Net Revenue Less Charge-offs (Recoveries) which reflects the adjustments considered in Adjusted Net Income, as necessary.
•Adjusted Pre-Provision Net Revenue Less Net Charge-Offs (Recoveries) is a performance measure utilized in determining executive compensation.
Non-GAAP Financial Measure Definition How the Measure Provides Useful Information to Investors
Net Interest Income (Tax-Equivalent Basis)
•Net interest income adjusted for the tax-favored status of tax-exempt loans and securities. (1)
•We believe the tax-equivalent basis is the preferred industry measurement of net interest income.
•Enhances comparability of net interest income arising from taxable and tax-exempt sources.
•We also sometimes refer to Net Interest Margin (Tax-Equivalent Basis), which is Net Interest Income (Tax-Equivalent Basis) divided by average interest-earning assets.
Efficiency Ratio (Tax-Equivalent Basis)
•Noninterest expense less amortization of intangible assets divided by the sum of net interest income (tax-equivalent basis) and noninterest income. (1)
•Provides a measure of productivity in the banking industry.
•Calculated to measure the cost of generating one dollar of revenue. That is, the ratio is designed to reflect the percentage of one dollar which must be expended to generate that dollar of revenue.
•We also sometimes refer to Adjusted Efficiency Ratio (Tax-Equivalent Basis) which reflects the adjustments considered in Adjusted Net Income, as necessary.
•Adjusted Efficiency Ratio (Tax-Equivalent Basis) is a performance measure utilized in determining executive compensation.
Ratio of Tangible Common Equity to Tangible Assets
•Tangible Common Equity is total stockholders' equity less goodwill and other intangible assets.
•Tangible Assets is total assets less goodwill and other intangible assets.
•Generally used by investors, our management, and banking regulators to evaluate capital adequacy.
•Facilitates comparison of our earnings with the earnings of other banking organizations with varying amounts of goodwill or intangible assets.
•We also sometimes refer to ratios that include Tangible Common Equity, such as:
-Tangible Book Value Per Share, which is Tangible Common Equity divided by shares of common stock outstanding.
-Return on Average Tangible Common Equity, which is net income divided by average Tangible Common Equity.
-Adjusted Return on Average Tangible Common Equity, which is Adjusted Net Income divided by average Tangible Common Equity.
Core Deposits
•Total deposits, excluding:
-Time deposits of $250,000 or more, and
-Brokered deposits
•Provides investors with information regarding the stability of the Company's sources of funds.
•We also sometimes refer to the ratio of Core Deposits to total deposits.
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(1)Tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.
Reconciliation of Non-GAAP Financial Measure -
Adjusted Net Income and Adjusted Return on Average Assets
Three Months Ended September 30, Nine Months Ended September 30,
(dollars in thousands) 2026 2025 2026 2025
Net income $ 31,392 $ 19,765 $ 70,436 $ 58,070
Less: adjustments
Acquisition expenses (1,005) - (16,928) -
Net earnings (losses) on closed or sold operations - - 51 -
Loss on extinguishment of debt - (391) - (391)
Gains (losses) on closed branch premises (61) (7) (271) 2
Realized gains (losses) on sales of securities (184) (49) (184) (49)
Mortgage servicing rights fair value adjustment 1,460 (514) 906 (1,573)
Total adjustments 210 (961) (16,426) (2,011)
Tax effect of adjustments (1)
(229) 274 4,306 573
Total adjustments after tax effect (19) (687) (12,120) (1,438)
Adjusted net income $ 31,411 $ 20,452 $ 82,556 $ 59,508
Average assets $ 6,739,611 $ 5,027,161 $ 6,398,667 $ 5,031,491
Return on average assets * 1.85 % 1.56 % 1.47 % 1.54 %
Adjusted return on average assets * 1.85 1.61 1.73 1.58
_________________________________________________
* Annualized measure.
(1)Assumes a federal income tax rate of 21% and a state income tax rate of 9.5%, and excludes non-deductible acquisition expenses.
Reconciliation of Non-GAAP Financial Measure -
Adjusted Earnings Per Share
Three Months Ended September 30, Nine Months Ended September 30,
(dollars in thousands, except per share amounts) 2026 2025 2026 2025
Numerator:
Net income $ 31,392 $ 19,765 $ 70,436 $ 58,070
Adjusted net income $ 31,411 $ 20,452 $ 82,556 $ 59,508
Denominator:
Weighted average common shares outstanding 36,365,612 31,481,135 35,318,125 31,525,247
Dilutive effect of outstanding restricted stock units 123,811 106,800 112,293 103,682
Weighted average common shares outstanding, including all dilutive potential shares 36,489,423 31,587,935 35,430,418 31,628,929
Earnings per share - basic $ 0.86 $ 0.63 $ 1.99 $ 1.84
Earnings per share - diluted $ 0.86 $ 0.63 $ 1.99 $ 1.84
Adjusted earnings per share - basic $ 0.86 $ 0.65 $ 2.34 $ 1.89
Adjusted earnings per share - diluted $ 0.86 $ 0.65 $ 2.33 $ 1.88
Reconciliation of Non-GAAP Financial Measure -
Pre-Provision Net Revenue, Pre-Provision Net Revenue Less Charge-offs (Recoveries),
Adjusted Pre-Provision Net Revenue, and
Adjusted Pre-Provision Net Revenue Less Charge-offs (Recoveries)
Three Months Ended September 30, Nine Months Ended September 30,
(dollars in thousands) 2026 2025 2026 2025
Net interest income $ 70,321 $ 49,986 $ 195,764 $ 148,352
Noninterest income 14,237 9,849 37,022 28,295
Noninterest expense (42,663) (32,508) (137,546) (96,357)
Pre-provision net revenue 41,895 27,327 95,240 80,290
Less: adjustments
Acquisition expenses (1,005) - (16,928) -
Net earnings (losses) on closed or sold operations - - 51 -
Loss on extinguishment of debt - (391) - (391)
Gains (losses) on closed branch premises (61) (7) (271) 2
Realized gains (losses) on sales of securities (184) (49) (184) (49)
Mortgage servicing rights fair value adjustment 1,460 (514) 906 (1,573)
Total adjustments 210 (961) (16,426) (2,011)
Adjusted pre-provision net revenue $ 41,685 $ 28,288 $ 111,666 $ 82,301
Pre-provision net revenue $ 41,895 $ 27,327 $ 95,240 $ 80,290
Less: net charge-offs (recoveries) (504) 134 154 1,610
Pre-provision net revenue less net charge-offs (recoveries) $ 42,399 $ 27,193 $ 95,086 $ 78,680
Adjusted pre-provision net revenue $ 41,685 $ 28,288 $ 111,666 $ 82,301
Less: net charge-offs (recoveries) (504) 134 154 1,610
Adjusted pre-provision net revenue less net charge-offs (recoveries) $ 42,189 $ 28,154 $ 111,512 $ 80,691
Reconciliation of Non-GAAP Financial Measure -
Net Interest Income and Net Interest Margin (Tax-Equivalent Basis)
Three Months Ended September 30, Nine Months Ended September 30,
(dollars in thousands) 2026 2025 2026 2025
Net interest income (tax-equivalent basis)
Net interest income $ 70,321 $ 49,986 $ 195,764 $ 148,352
Tax-equivalent adjustment (1)
869 552 2,369 1,645
Net interest income (tax-equivalent basis) (1)
$ 71,190 $ 50,538 $ 198,133 $ 149,997
Net interest margin (tax-equivalent basis)
Net interest margin * 4.35 % 4.13 % 4.30 % 4.13 %
Tax-equivalent adjustment * (1)
0.05 0.05 0.05 0.05
Net interest margin (tax-equivalent basis) * (1)
4.40 % 4.18 % 4.35 % 4.18 %
Average interest-earning assets $ 6,418,825 $ 4,800,519 $ 6,093,027 $ 4,802,260
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* Annualized measure.
(1)On a tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.
Reconciliation of Non-GAAP Financial Measure -
Efficiency Ratio (Tax-Equivalent Basis) and Adjusted Efficiency Ratio (Tax-Equivalent Basis)
Three Months Ended September 30, Nine Months Ended September 30,
(dollars in thousands) 2026 2025 2026 2025
Total noninterest expense $ 42,663 $ 32,508 $ 137,546 $ 96,357
Less: amortization of intangible assets 1,455 694 3,797 2,083
Noninterest expense excluding amortization of intangible assets 41,208 31,814 133,749 94,274
Less: adjustments to noninterest expense
Acquisition expenses 1,005 - 16,928 -
Expenses from closed or sold operations - - 273 -
Loss on extinguishment of debt - 391 - 391
Total adjustments to noninterest expense 1,005 391 17,201 391
Adjusted noninterest expense $ 40,203 $ 31,423 $ 116,548 $ 93,883
Net interest income $ 70,321 $ 49,986 $ 195,764 $ 148,352
Total noninterest income 14,237 9,849 37,022 28,295
Operating revenue 84,558 59,835 232,786 176,647
Tax-equivalent adjustment (1)
869 552 2,369 1,645
Operating revenue (tax-equivalent basis) (1)
85,427 60,387 235,155 178,292
Less: adjustments to noninterest income
Revenue from closed or sold operations - - 324 -
Gains (losses) on closed branch premises (61) (7) (271) 2
Realized gains (losses) on sales of securities (184) (49) (184) (49)
Mortgage servicing rights fair value adjustment 1,460 (514) 906 (1,573)
Total adjustments to noninterest income 1,215 (570) 775 (1,620)
Adjusted operating revenue (tax-equivalent basis) (1)
$ 84,212 $ 60,957 $ 234,380 $ 179,912
Efficiency ratio 48.73 % 53.17 % 57.46 % 53.37 %
Efficiency ratio (tax-equivalent basis) (1)
48.24 52.68 56.88 52.88
Adjusted efficiency ratio (tax-equivalent basis) (1)
47.74 51.55 49.73 52.18
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(1)On a tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.
Reconciliation of Non-GAAP Financial Measure -
Ratio of Tangible Common Equity to Tangible Assets and Tangible Book Value Per Share
(dollars in thousands, except per share data) September 30, 2026 December 31, 2025
Tangible Common Equity
Total stockholders' equity $ 754,091 $ 615,498
Less: Goodwill 81,949 59,820
Less: Intangible assets 41,403 15,117
Tangible common equity $ 630,739 $ 540,561
Tangible Assets
Total assets $ 6,719,327 $ 5,071,390
Less: Goodwill 81,949 59,820
Less: Intangible assets 41,403 15,117
Tangible assets $ 6,595,975 $ 4,996,453
Total stockholders' equity to total assets 11.22 % 12.14 %
Tangible common equity to tangible assets 9.56 10.82
Shares of common stock outstanding 36,365,612 31,431,924
Book value per share $ 20.74 $ 19.58
Tangible book value per share 17.34 17.20
Reconciliation of Non-GAAP Financial Measure -
Return on Average Tangible Common Equity, Adjusted Return on Average Stockholders' Equity, and Adjusted Return on Average Tangible Common Equity
Three Months Ended September 30, Nine Months Ended September 30,
(dollars in thousands) 2026 2025 2026 2025
Average Tangible Common Equity
Total stockholders' equity $ 770,236 $ 589,076 $ 733,380 $ 572,225
Less: Goodwill 81,949 59,820 77,855 59,820
Less: Intangible assets 42,109 16,095 37,094 16,781
Average tangible common equity $ 646,178 $ 513,161 $ 618,431 $ 495,624
Net income $ 31,392 $ 19,765 $ 70,436 $ 58,070
Adjusted net income 31,411 20,452 82,556 59,508
Return on average stockholders' equity * 16.17 % 13.31 % 12.84 % 13.57 %
Return on average tangible common equity * 19.27 15.28 15.23 15.66
Adjusted return on average stockholders' equity * 16.18 % 13.77 % 15.05 % 13.90 %
Adjusted return on average tangible common equity * 19.29 15.81 17.85 16.05
_________________________________________________
* Annualized measure.
Reconciliation of Non-GAAP Financial Measure -
Core Deposits
(dollars in thousands) September 30, 2026 December 31, 2025
Core Deposits
Total deposits $ 5,752,432 $ 4,359,263
Less: time deposits of $250,000 or more 384,516 201,365
Less: brokered deposits - -
Core deposits $ 5,367,916 $ 4,157,898
Core deposits to total deposits 93.32 % 95.38 %
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