FirstSun Capital Bancorp Reports Fourth Quarter and Full Year 2025 Results

DENVER--( BUSINESS WIRE)--FirstSun Capital Bancorp (“FirstSun”) (NASDAQ: FSUN) reported net income of $24.8 million for the fourth quarter of 2025 compared to net income of $16.4 million for the fourth quarter of 2024. Earnings per diluted share were $0.88 for the fourth quarter of 2025 compared to $0.58 for the fourth quarter of 2024. Adjusted net income, a non-GAAP financial measure, was $26.9 million or $0.95 per diluted share for the fourth quarter of 2025 compared to $24.3 million or $0.86 per diluted share for the fourth quarter of 2024.

Neal Arnold, FirstSun’s Chief Executive Officer and President, commented, “We are very pleased with our strong operating results in the fourth quarter. Among the highlights were our growth in net interest margin to a strong 4.18%, average loan growth of 8.5%, annualized and revenue growth driving our earnings growth. Our strategic focus on our C&I, consumer and service fee businesses has enabled us to continue to responsibly grow our franchise and deliver strong earnings once again this year. While we acknowledge the potential influence of macroeconomic and geopolitical risks, we look forward to the franchise opportunities ahead in 2026 and believe our business model and well diversified business mix will position us for continued success.

“We are also encouraged with the progress we are making with the First Foundation team on operational integration planning and balance sheet optimization work. Finally, I want to thank all of our hard-working employees for their continued focus on creating a best-in-class bank while delivering value added solutions to all our customers throughout our footprint.”

Fourth Quarter 2025 Results

Net income totaled $24.8 million, or $0.88 per diluted share, for the fourth quarter of 2025, compared to $23.2 million, or $0.82 per diluted share, for the prior quarter. Adjusted net income, a non-GAAP financial measure, totaled $26.9 million, or $0.95 per diluted share, for the fourth quarter of 2025, compared to $23.4 million, or $0.83 per diluted share, for the prior quarter.

The return on average total assets was 1.17% for the fourth quarter of 2025, compared to 1.09% for the prior quarter, and the return on average stockholders’ equity was 8.58% for the fourth quarter of 2025, compared to 8.22% for the prior quarter. Adjusted return on average total assets and adjusted return on average stockholders’ equity, each a non-GAAP financial measure, were 1.27% and 9.31% respectively for the fourth quarter of 2025 compared to 1.10% and 8.31% respectively for the prior quarter.

Net Interest Income and Net Interest Margin

Net interest income totaled $83.5 million for the fourth quarter of 2025, an increase of $2.5 million compared to the prior quarter. Our net interest margin increased 11 basis points to 4.18% compared to the prior quarter.

Average loans, including loans held-for-sale, increased by $158.2 million in the fourth quarter of 2025, compared to the prior quarter. Loan yield decreased by 12 basis points to 6.37% in the fourth quarter of 2025, compared to the prior quarter, primarily due to the declining interest rate environment and its impact on variable rate loans in the loan portfolio. Average interest-bearing cash and other assets decreased by $131.2 million in the fourth quarter of 2025, compared to the prior quarter. Interest-bearing cash and other assets yield decreased by 57 basis points to 3.68% in the fourth quarter of 2025, compared to the prior quarter, primarily due to the declining interest rate environment.

Average interest-bearing deposits decreased $60.6 million in the fourth quarter of 2025, compared to the prior quarter. Total cost of interest-bearing deposits decreased by 21 basis points to 2.60% in the fourth quarter of 2025, compared to the prior quarter, primarily due to rate decreases for certificates of deposit and money market deposits amidst the declining interest rate environment and a decrease in certificates of deposit balances. Average other long-term borrowings decreased $39.5 million in the fourth quarter of 2025, compared to the prior quarter. Cost of other long-term borrowings decreased 259 basis points to 5.82% in the fourth quarter of 2025, compared to the prior quarter, primarily due to the redemption of $40.0 million of subordinated notes.

Asset Quality and Provision for Credit Losses

The provision for credit losses totaled $6.2 million for the fourth quarter of 2025 primarily due to impacts from net portfolio downgrades.

Net charge-offs for the fourth quarter of 2025 were $5.0 million resulting in an annualized ratio of net charge-offs to average loans of 0.30%, compared to net charge-offs of $9.1 million, or an annualized ratio of net-charge offs to average loans of 0.55% for the prior quarter. Net charge-offs for the fourth quarter of 2025 were elevated primarily due to a write-down related to a specific customer relationship in our C&I loan portfolio.

The allowance for credit losses as a percentage of loans was 1.27% at December 31, 2025, an increase of one basis point from the prior quarter. The ratio of nonperforming assets to total assets was 0.85% at December 31, 2025, compared to 0.98% at September 30, 2025.

Noninterest Income

Noninterest income totaled $26.7 million for the fourth quarter of 2025, an increase of $0.4 million from the prior quarter. Income from mortgage banking services decreased $0.5 million for the fourth quarter of 2025, from the prior quarter, primarily due to a decrease in net MSR capitalization resulting from higher balance runoff in the servicing portfolio. Other noninterest income increased $0.8 million for the fourth quarter of 2025, from the prior quarter, primarily due to an increase in loan syndication fees and swap fee income, partially offset by a decrease in the fair value of investments related to our deferred compensation plan.

Noninterest income as a percentage of total revenue 1 was 24.3%, a decrease of 0.2% from the prior quarter.

Noninterest Expense

Noninterest expense totaled $72.0 million for the fourth quarter of 2025, an increase of $3.1 million from the prior quarter. Salary and employee benefits decreased $1.3 million in the fourth quarter of 2025 from the prior quarter, primarily due to a decrease in the fair value of investments related to our deferred compensation plan and a reduction in medical insurance costs. Other noninterest expenses increased $2.4 million in the fourth quarter of 2025 from the prior quarter, primarily due to the acceleration of remaining deferred expenses related to the $40.0 million subordinated notes redemption and maintenance expenses incurred related to OREO properties. Merger related expenses increased $2.0 million in the fourth quarter of 2025 from the prior quarter.

The efficiency ratio for the fourth quarter of 2025 was 65.37% compared to 64.22% for the prior quarter. The adjusted efficiency ratio, a non-GAAP financial measure, for the fourth quarter of 2025 was 63.36% compared to 64.00% for the prior quarter.

Tax Rate

The effective tax rate was 22.4% for the fourth quarter of 2025, compared to 18.1% for the prior quarter.

Loans

Loans were $6.7 billion at December 31, 2025 and September 30, 2025, decreasing $8.4 million in the fourth quarter of 2025, or 0.5% on an annualized basis.

Deposits

Deposits were $7.1 billion at December 31, 2025 and September 30, 2025, an increase of $1.9 million in the fourth quarter of 2025, or 0.1% on an annualized basis, primarily due to an increase of $100.0 million in money market accounts, partially offset by decreases of $61.8 million in certificates of deposit and $23.1 million in noninterest-bearing deposit accounts. Average deposits were $7.1 billion for fourth quarter of 2025 and for the prior quarter, decreasing $4.8 million or 0.3% on an annualized basis.

Noninterest-bearing deposit accounts represented 23.2% of total deposits at December 31, 2025 and the loan to deposit ratio was 93.9% at December 31, 2025.

The ratio of total uninsured deposits to total deposits was estimated to be 36.6% at December 31, 2025. The ratio of total uninsured and uncollateralized deposits to total deposits was estimated to be 29.0% at December 31, 2025. 2

Capital

Capital ratios remain strong and above “well-capitalized” thresholds. As of December 31, 2025, our common equity tier 1 risk-based capital ratio was 14.12%, total risk-based capital ratio was 15.73% and tier 1 leverage ratio was 12.75%. Book value per share was $41.36 at December 31, 2025, an increase of $0.88 from September 30, 2025. Tangible book value per share, a non-GAAP financial measure, was $37.83 at December 31, 2025, an increase of $0.91 from September 30, 2025.

Full Year 2025 Results

Full Year Highlights:

Net income totaled $97.9 million, or $3.47 per diluted share, in 2025, compared to $75.6 million, or $2.69 per diluted share, in 2024. Adjusted net income, a non-GAAP financial measure, was $100.5 million, or $3.56 per diluted share, in 2025 compared to $87.7 million, or $3.13 per diluted share, in 2024.

The return on average total assets was 1.18% in 2025, compared to 0.96% in 2024, and the return on average stockholders’ equity was 8.88% in 2025, compared to 7.56% in 2024. Adjusted return on average total assets and adjusted return on average stockholders’ equity, each a non-GAAP financial measure, were 1.21% and 9.11% respectively in 2025 compared to 1.12% and 8.77% respectively in 2024.

Net Interest Income and Net Interest Margin

Net interest income totaled $317.4 million in 2025, an increase of $20.5 million compared to 2024. Our net interest margin increased four basis points to 4.10% compared to 2024.

Average loans, including loans held-for-sale, increased by $224.1 million in 2025, compared to 2024. Loan yield decreased by 17 basis points to 6.41% in 2025, compared to 2024, primarily due to the declining interest rate environment and its impact on variable rate loans in the loan portfolio. Average interest-bearing cash and other assets increased by $218.6 million in 2025, compared to 2024. Interest-bearing cash and other assets yield decreased by 88 basis points to 4.14% in 2025, compared to 2024, primarily due to the declining interest rate environment.

Average deposits increased $357.6 million in 2025, compared to 2024. Total cost of interest-bearing deposits decreased by 30 basis points to 2.73% in 2025, compared to 2024, primarily due to a decrease in balances and rates for certificates of deposit amidst the declining interest rate environment, partially offset by an increase in promotional rate money market deposit balances. Average FHLB borrowings decreased $117.0 million in 2025, compared to 2024. The cost of FHLB borrowings decreased by 87 basis points to 4.61% in 2025, compared to 2024.

Asset Quality and Provision for Credit Losses

The provision for credit losses totaled $24.6 million in 2025, a decrease of $3.0 million compared to 2024. The provision for credit losses in 2025 was primarily due to a combination of deterioration of two customer relationships in our commercial and industrial (C&I) portfolio, impacts from net portfolio downgrades, and impacts from growth in loan portfolio balances.

Net charge-offs in 2025 were $28.3 million, or a ratio of net charge-offs to average loans of 0.43%, compared to net charge-offs of $20.4 million, or a ratio of net charge-offs to average loans of 0.32%, in 2024. Net charge-offs in 2025 were elevated primarily due to write-downs of two customer relationships in our C&I loan portfolio.

The allowance for credit losses as a percentage of loans was 1.27% at December 31, 2025, compared to 1.38% at December 31, 2024. The ratio of nonperforming assets to total assets was 0.85% at December 31, 2025, compared to 0.92% at December 31, 2024.

Noninterest Income

Noninterest income totaled $101.9 million during 2025, an increase of $12.1 million from 2024. Income from mortgage banking services increased $8.1 million in 2025 compared to 2024, primarily due to an increase in gain on sales driven by higher origination volume and margins and an increase in mortgage servicing revenue driven by higher servicing portfolio balances. Treasury management service fees increased $2.6 million in 2025 compared to 2024, primarily due to growth in services provided to our business customers. Other noninterest income increased $2.8 million in 2025 compared to 2024, primarily due to an increase in loan syndication fees and swap fee income.

Noninterest income as a percentage of total revenue 1 totaled 24.3% in 2025, compared to 23.2% in 2024.

Noninterest Expense

Noninterest expense totaled $271.8 million in 2025, an increase of $7.7 million from 2024. Salaries and employee benefits increased $16.8 million in 2025 compared to 2024, primarily due to an increase in headcount of C&I bankers and support personnel, higher levels of variable compensation, including those associated with an increase in mortgage loan originations, and an increase in medical insurance costs. Merger related expenses decreased $10.4 million in 2025 compared to 2024.

The efficiency ratio for 2025 was 64.82% compared to 68.28% in 2024. The adjusted efficiency ratio, a non-GAAP financial measure, in 2025 was 64.17% compared to 64.13% in 2024.

Tax Rate

The effective tax rate was 20.3% in 2025, compared to 20.5% in 2024.

Loans

Loans were $6.7 billion at December 31, 2025 compared to $6.4 billion at December 31, 2024, an increase of $0.3 billion or 4.7%, primarily due to growth of $0.3 billion in C&I loans.

Deposits

Deposits were $7.1 billion at December 31, 2025 and $6.7 billion at December 31, 2024, an increase of $0.4 billion or 6.5% in 2025, primarily due to increases of $0.1 billion in noninterest-bearing deposit accounts, $0.1 billion in interest-bearing demand and NOW accounts, and $0.5 billion in money market accounts, partially offset by a decrease of $0.3 billion in certificates of deposit. Average deposits were $6.9 billion for the year ending December 31, 2025, compared to $6.5 billion for the prior year, an increase of $430.4 million or 6.6%.

Capital

Capital ratios remain strong and above “well-capitalized” thresholds. As of December 31, 2025, our common equity tier 1 risk-based capital ratio was 14.12%, total risk-based capital ratio was 15.73% and tier 1 leverage ratio was 12.75%. Book value per share was $41.36 at December 31, 2025, an increase of $3.78 from December 31, 2024. Tangible book value per share, a non-GAAP financial measure, was $37.83 at December 31, 2025, an increase of $3.89 from December 31, 2024.

Non-GAAP Financial Measures

This press release (including the tables within the “Non-GAAP Financial Measures and Reconciliations” section) contains financial measures determined by methods other than in accordance with principles generally accepted in the United States (“GAAP”). FirstSun management uses these non-GAAP financial measures in their analysis of FirstSun’s performance and the efficiency of its operations. Management believes these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results with prior periods and demonstrate the effects of significant items in the current period. FirstSun believes a meaningful analysis of its financial performance requires an understanding of the factors underlying that performance. FirstSun management believes investors may find these non-GAAP financial measures useful. These non-GAAP financial measures, however, should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Below is a listing of the non-GAAP measures used in this press release:

The tables within the “Non-GAAP Financial Measures and Reconciliations” section provide a reconciliation of each non-GAAP financial measure contained in this press release to the most comparable GAAP equivalent.

Total revenue is net interest income plus noninterest income.

Uninsured deposits and uninsured and uncollateralized deposits are reported for our wholly-owned subsidiary Sunflower Bank, N.A.

About FirstSun Capital Bancorp

FirstSun Capital Bancorp (NASDAQ: FSUN), headquartered in Denver, Colorado, is the financial holding company for Sunflower Bank, N.A., which operates as Sunflower Bank and First National 1870. Sunflower Bank provides a full range of relationship-focused services to meet personal, business and wealth management financial objectives, with depository branches in seven states and mortgage capabilities in 44 states. FirstSun had total consolidated assets of $8.5 billion as of December 31, 2025.

First National 1870 is a division of Sunflower Bank, N.A. To learn more, visit ir.firstsuncb.com or SunflowerBank.com

Investor Earnings Conference Call

FirstSun will host a conference call on Tuesday, January 27, 2026 at 11:00 a.m. (EST) to discuss its fourth quarter and full year 2025 financial results.

Participants may join by phone by dialing (833) 470-1428 for toll-free within the US and (404) 975-4839 for all other locations. The conference Access Code is 586052. The numbers for international participants are available here: https://www.netroadshow.com/events/global-numbers?confId=48643.

An audio replay of the live call, and the accompanying presentation slides, is expected to be available following the live event on the Events & Presentations page of FirstSun’s website at https://ir.firstsuncb.com/overview/default.aspx.

Day-Count Convention

Annualized ratios are presented utilizing the Actual/Actual day-count convention. Annualized ratios have been recalculated to conform to the current presentation for periods prior to March 31, 2025.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements regarding our future franchise opportunities and continued success in 2026. These statements reflect management’s current expectations and are not guarantees of future performance. Words such as “focus,” “may,” “will,” “believe,” “anticipate,” “expect,” “intend,” “opportunity,” “continue,” “should,” and “could” and variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements are subject to risks, uncertainties and assumptions that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence, which could cause actual results to differ materially from anticipated results. Such risks, uncertainties and assumptions, include, among others, the following: changes in interest rates (including anticipated Federal Reserve rate cuts that might not occur) and their related impact on macroeconomic conditions, customer behavior, our funding costs and our loan and securities portfolios; the quality or composition of our loan or investment portfolios and changes therein; failure to maintain our mortgage production flow to secondary markets; the sufficiency of liquidity and changes in our capital position; the inability of our infrastructure initiatives to reduce expenses; increased deposit volatility; potential regulatory developments; U.S. and global trade policies and tensions, including change in, or the imposition of, tariffs and/or trade barriers and the economic impacts, volatility and uncertainty resulting therefrom, and geopolitical instability; the possibility that our previously announced merger with First Foundation Inc. (“First Foundation") does not close when expected or at all because required regulatory, stockholder or other approvals and conditions to closing are not received or satisfied on a timely basis or at all; the possibility that the proposed First Foundation merger, including the re-positioning strategy, will not be completed as planned, or achieve the anticipated benefits; the diversion of management’s attention from ongoing business operations and opportunities due to the proposed First Foundation merger; the occurrence of any event, change or other circumstances that could give rise to the termination of the First Foundation merger agreement; the possibility that the anticipated benefits of the proposed First Foundation merger, including anticipated cost savings and synergies, are not realized when expected or at all, including because of the impact of, or problems arising from, the integration of the companies or as a result of the strength of the economy, competitive factors in the areas where we do business, or because of other unexpected factors or events; and other general competitive, economic, business, market and political conditions.

We caution readers that the foregoing list of factors is not exclusive, is not necessarily in order of importance and readers should not place undue reliance on any forward-looking statements. Additional information concerning additional factors that could materially affect the forward-looking statements in this press release can be found in the cautionary language included under the headings “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 and other documents subsequently filed by the Company with the SEC, including its Quarterly Reports on Form 10-Q. Further, any forward-looking statement speaks only as of the date on which it is made and we do not intend to and disclaim any obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as required by law.

Additional Information About the Merger and Where to Find It

This communication contains statements regarding the proposed transaction between FirstSun and First Foundation. In connection with the proposed transaction, FirstSun filed a registration statement on Form S-4 on December 11, 2025, as amended on January 14, 2026 (and which is available at https://www.sec.gov/Archives/edgar/data/1709442/000155278126000014/e26019_fsun-s4a.htm), to register FirstSun’s shares that will be issued to First Foundation’s stockholders in connection with the merger. The registration statement includes a joint proxy statement of FirstSun and First Foundation and a prospectus of FirstSun, as well as other relevant documents concerning the proposed transaction. The Registration Statement was declared effective by the SEC on January 15, 2026 and FirstSun filed a definitive joint proxy statement/prospectus on January 15, 2026 (and which is available at https://www.sec.gov/Archives/edgar/data/1709442/000155278126000019/e26025_fsun-424b3.htm) and it was first mailed to FirstSun and First Foundation stockholders on January 16, 2026.

INVESTORS ARE URGED TO READ THE REGISTRATION STATEMENT AND THE JOINT PROXY STATEMENT/PROSPECTUS REGARDING THE MERGER ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE TRANSACTION OR INCORPORATED BY REFERENCE INTO THE REGISTRATION STATEMENT ON FORM S-4 AND THE JOINT PROXY STATEMENT/PROSPECTUS, BECAUSE THEY CONTAIN IMPORTANT INFORMATION REGARDING FIRSTSUN, FIRST FOUNDATION, THE TRANSACTION AND RELATED MATTERS.

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

A free copy of the joint proxy statement/prospectus, as well as other documents filed by FirstSun or First Foundation may be obtained at the SEC’s Internet site at http://www.sec.gov. Investors and security holders may also obtain free copies of the documents filed with the SEC by (i) FirstSun on its website at https://ir.firstsuncb.com/overview/default.aspx under the Financials tab and then under the SEC Filings option, and (ii) First Foundation on its website at https://investor.ff-inc.com/investor-home/default.aspx under the Financials tab and then under the SEC Filings option.

Participants in the Solicitation

FirstSun, First Foundation and certain of their directors and executive officers may be deemed participants in the solicitation of proxies from stockholders of FirstSun or First Foundation in connection with the proposed transaction. Information regarding the directors and executive officers of FirstSun and First Foundation and other persons who may be deemed participants in the solicitation of the stockholders of FirstSun or First Foundation in connection with the proposed transaction is included in the joint proxy statement/prospectus, which was filed by FirstSun with the SEC on January 15, 2026 (and which is available at https://www.sec.gov/Archives/edgar/data/1709442/000155278126000019/e26025_fsun-424b3.htm). Information about the directors and officers of FirstSun and their ownership of FirstSun common stock can be found in FirstSun’s definitive proxy statement in connection with its 2025 annual meeting of stockholders, including under the headings “Director Experience”, “Biographical Information for Executive Officers”, “Certain Relationships and Related Party Transactions”, “Security Ownership of Certain Beneficial Owners and Management”, “Executive Compensation”, and “Compensation of Directors for Fiscal Year 2024”, as filed with the SEC on March 21, 2025 and available at https://www.sec.gov/ix?doc=/Archives/edgar/data/0001709442/000170944225000020/fcb-20250321.htm, and other documents subsequently filed by FirstSun with the SEC, including on Statements of Change in Ownership on Form 4 filed with the SEC, available at https://www.sec.gov/edgar/browse/?CIK=1709442&owner=exclude. Information about the directors and officers of First Foundation and their ownership of First Foundation common stock can be found in First Foundation’s definitive proxy statement in connection with its 2025 annual meeting of stockholders, including under the headings “Security Ownership of Certain Beneficial Owners and Management”, “Election of Directors (Proposal No. 1)”, “Advisory Vote on the Compensation of the Company’s Named Executive Officers (Proposal No. 4)”, “Compensation Committee Report”, and “Certain Relationships and Related Party Transactions” as filed with the SEC on April 17, 2025 and available at https://www.sec.gov/ix?doc=/Archives/edgar/data/0001413837/000110465925036041/tm252563-3_def14a.htm, and other documents subsequently filed by First Foundation with the SEC, including on Statements of Change in Ownership on Form 4 filed with the SEC, available at https://www.sec.gov/edgar/browse/?CIK=1413837&owner=exclude. Additional information regarding the interests of participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, are included in the joint proxy statement/prospectus filed by FirstSun with the SEC on January 15, 2026 (which is available at https://www.sec.gov/Archives/edgar/data/1709442/000155278126000019/e26025_fsun-424b3.htm). You may obtain free copies of these documents through the website maintained by the SEC at https://www.sec.gov.

Summary Data:

As of and for the three months ended

($ in thousands, except per share amounts)

December 31,

2025

September 30,

2025

June 30,

2025

March 31,

2025

December 31,

2024

Net interest income

83,461

80,953

78,499

74,478

77,047

Provision for credit losses

6,200

10,100

4,500

3,800

4,850

Noninterest income

26,744

26,333

27,073

21,729

21,635

Noninterest expense

72,041

68,901

68,110

62,722

73,673

Income before income taxes

31,964

28,285

32,962

29,685

20,159

Provision for income taxes

7,157

5,111

6,576

6,116

3,809

Net income

24,807

23,174

26,386

23,569

16,350

Adjusted net income 1

26,923

23,412

26,601

23,569

24,316

Weighted average common shares outstanding, basic

27,839,044

27,801,255

27,783,710

27,721,760

27,668,470

Weighted average common shares outstanding, diluted

28,262,530

28,291,778

28,232,319

28,293,912

28,290,474

Diluted earnings per share

0.88

0.82

0.93

0.83

0.58

Adjusted diluted earnings per share 1

0.95

0.83

0.94

0.83

0.86

Return on average total assets

1.17

1.09

1.28

1.20

0.81

Adjusted return on average total assets 1

1.27

1.10

1.29

1.20

Return on average stockholders' equity

8.58

8.22

9.74

9.03

6.22

Adjusted return on average stockholders' equity 1

9.31

8.31

9.82

9.03

9.24

Return on average tangible stockholders' equity 1

9.58

9.20

10.91

10.18

7.36

Adjusted return on average tangible stockholders' equity 1

10.38

9.30

11.00

10.18

10.72

Net interest margin

4.18

4.07

4.09

Net interest margin (FTE basis) 1

4.23

4.12

4.13

4.15

Efficiency ratio

65.37

64.22

64.52

65.19

74.66

Adjusted efficiency ratio 1

63.36

64.00

64.25

65.19

63.63

Noninterest income to total revenue 2

24.3

24.5

25.6

22.6

21.9

Total assets

8,485,162

8,495,437

8,435,861

8,216,458

8,097,387

Loans held-for-sale

100,539

85,250

90,781

65,603

61,825

Loans held-for-investment

6,673,180

6,681,629

6,507,066

6,484,008

6,376,357

Total deposits

7,107,356

7,105,415

7,100,164

6,874,239

6,672,260

Total stockholders' equity

1,153,356

1,127,513

1,095,402

1,068,295

1,041,366

Loan to deposit ratio

93.9

94.0

91.6

94.3

95.6

Period end common shares outstanding

27,887,337

27,854,764

27,834,525

27,753,918

27,709,679

Book value per share

41.36

40.48

39.35

38.49

37.58

Tangible book value per share 1

37.83

36.92

35.77

34.88

33.94

Represents a non-GAAP financial measure. See the tables within the “Non-GAAP Financial Measures and Reconciliations” section for a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.

Total revenue is net interest income plus noninterest income.

Summary Data (cont’d):

As of and for the year ended

($ in thousands, except per share amounts)

December 31,

2025

December 31,

2024

Net interest income

317,391

296,910

Provision for credit losses

24,600

27,550

Noninterest income

101,879

89,792

Noninterest expense

271,774

264,040

Income before income taxes

122,896

95,112

Provision for income taxes

24,960

19,484

Net income

97,936

75,628

Adjusted net income 1

100,505

87,744

Weighted average common shares outstanding, basic

27,786,887

27,433,865

Weighted average common shares outstanding, diluted

28,249,796

28,067,273

Diluted earnings per share

3.47

2.69

Adjusted diluted earnings per share 1

3.56

3.13

Return on average total assets

1.18

0.96

Adjusted return on average total assets 1

1.21

1.12

Return on average stockholders' equity

8.88

7.56

Adjusted return on average stockholders’ equity 1

9.11

8.77

Return on average tangible stockholders' equity 1

9.95

8.74

Adjusted return on average tangible stockholders' equity 1

10.21

10.09

Net interest margin

4.10

4.06

Net interest margin (FTE basis) 1

4.16

4.12

Efficiency ratio

64.82

68.28

Adjusted efficiency ratio 1

64.17

64.13

Noninterest income to total revenue 2

24.3

23.2

Total assets

8,485,162

8,097,387

Loans held-for-sale

100,539

61,825

Loans held-for-investment

6,673,180

6,376,357

Total deposits

7,107,356

6,672,260

Total stockholders' equity

1,153,356

1,041,366

Loan to deposit ratio

93.9

95.6

Period end common shares outstanding

27,887,337

27,709,679

Book value per share

41.36

37.58

Tangible book value per share 1

37.83

33.94

Total revenue is net interest income plus noninterest income.

Condensed Consolidated Statements of Income (Unaudited):

For the three months ended

For the year ended

($ in thousands, except per share amounts)

December 31,

2025

December 31,

2024

December 31,

2025

December 31,

2024

Total interest income

119,273

116,039

467,769

459,540

Total interest expense

35,812

38,992

150,378

162,630

Net interest income

83,461

77,047

317,391

296,910

Provision for credit losses

6,200

4,850

24,600

27,550

Net interest income after credit loss expense

77,261

72,197

292,791

269,360

Noninterest income:

Service charges on deposit accounts

2,116

2,219

8,321

9,495

Treasury management service fees

4,544

3,982

17,473

14,829

Credit and debit card fees

2,744

2,706

10,729

11,153

Trust and investment advisory fees

1,515

1,436

5,945

5,787

Income from mortgage banking services, net

12,102

9,631

47,072

39,014

Other noninterest income

3,723

1,661

12,339

9,514

Total noninterest income

26,744

21,635

101,879

89,792

Noninterest expense:

Salary and employee benefits

43,520

38,498

171,824

154,985

Occupancy and equipment

9,576

9,865

38,244

36,282

Amortization and impairment of intangible assets

628

1,431

2,412

3,549

Merger related expenses

2,217

8,010

2,743

13,178

Other noninterest expenses

16,100

15,869

56,551

56,046

Total noninterest expense

72,041

73,673

271,774

264,040

Income before income taxes

31,964

20,159

122,896

95,112

Provision for income taxes

7,157

3,809

24,960

19,484

Net income

24,807

16,350

97,936

75,628

Earnings per share - basic

0.89

0.59

3.52

2.76

Earnings per share - diluted

0.88

0.58

3.47

2.69

Condensed Consolidated Statements of Income (Unaudited) (cont’d):

For the three months ended

($ in thousands, except per share amounts)

December 31,

2025

September 30,

2025

June 30,

2025

March 31,

2025

December 31,

2024

Total interest income

119,273

121,128

116,921

110,447

116,039

Total interest expense

35,812

40,175

38,422

35,969

38,992

Net interest income

83,461

80,953

78,499

74,478

77,047

Provision for credit losses

6,200

10,100

4,500

3,800

4,850

Net interest income after credit loss expense

77,261

70,853

73,999

70,678

72,197

Noninterest income:

Service charges on deposit accounts

2,116

2,162

2,016

2,027

2,219

Treasury management service fees

4,544

4,402

4,333

4,194

3,982

Credit and debit card fees

2,744

2,671

2,728

2,586

2,706

Trust and investment advisory fees

1,515

1,536

1,473

1,421

1,436

Income from mortgage banking services, net

12,102

12,641

13,274

9,055

9,631

Other noninterest income

3,723

2,921

3,249

2,446

1,661

Total noninterest income

26,744

26,333

27,073

21,729

21,635

Noninterest expense:

Salary and employee benefits

43,520

44,822

43,921

39,561

38,498

Occupancy and equipment

9,576

9,591

9,541

9,536

9,865

Amortization and impairment of intangible assets

628

578

628

1,431

Merger related expenses

2,217

241

285

—

8,010

Other noninterest expenses

16,100

13,669

13,785

12,997

15,869

Total noninterest expense

72,041

68,901

68,110

62,722

73,673

Income before income taxes

31,964

28,285

32,962

29,685

20,159

Provision for income taxes

7,157

5,111

6,576

6,116

3,809

Net income

24,807

23,174

26,386

23,569

16,350

Earnings per share - basic

0.89

0.83

0.95

0.85

0.59

Earnings per share - diluted

0.88

0.82

0.93

0.83

0.58

Condensed Consolidated Balance Sheets as of (Unaudited):

($ in thousands)

December 31,

2025

September 30,

2025

June 30,

2025

March 31,

2025

December 31,

2024

Assets

Cash and cash equivalents

652,592

659,899

785,115

621,377

615,917

Securities available-for-sale, at fair value

468,970

476,114

473,468

480,615

469,076

Securities held-to-maturity

33,839

34,247

34,581

34,914

35,242

Loans held-for-sale, at fair value

100,539

85,250

90,781

65,603

61,825

Loans

6,673,180

6,681,629

6,507,066

6,484,008

6,376,357

Allowance for credit losses

(85,016

)

(84,040

)

(82,993

)

(91,790

)

(88,221

)

Loans, net

6,588,164

6,597,589

6,424,073

6,392,218

6,288,136

Mortgage servicing rights, at fair value

86,651

85,695

84,736

82,927

84,258

Premises and equipment, net

81,523

81,886

82,248

82,333

82,483

Other real estate owned and foreclosed assets, net

11,514

13,418

13,052

4,914

5,138

Goodwill

93,483

Core deposits and other intangible assets, net

4,983

5,650

6,228

6,806

7,434

Other assets

362,904

362,206

348,096

351,268

354,395

Total assets

8,485,162

8,495,437

8,435,861

8,216,458

8,097,387

Liabilities and Stockholders' Equity

Liabilities:

Deposits:

Noninterest-bearing accounts

1,651,373

1,674,497

1,706,678

1,574,736

1,541,158

Interest-bearing accounts:

Demand and NOW

848,661

854,176

797,755

748,589

731,404

Savings

378,631

386,235

397,120

405,621

402,338

Money market

2,937,017

2,837,019

2,769,346

2,569,153

2,431,785

Certificates of deposit

1,291,674

1,353,488

1,429,265

1,576,140

1,565,575

Total deposits

7,107,356

7,105,415

7,100,164

6,874,239

6,672,260

Securities sold under agreements to repurchase

11,160

9,824

11,173

8,515

14,699

Federal Home Loan Bank advances

—

35,000

135,000

Subordinated debt, net

36,680

76,163

76,066

75,969

75,841

Other liabilities

176,610

176,522

153,056

154,440

158,221

Total liabilities

7,331,806

7,367,924

7,340,459

7,148,163

7,056,021

Stockholders' equity:

Preferred stock

—

Common stock

Additional paid-in capital

549,617

548,952

547,950

547,484

547,325

Retained earnings

631,086

606,279

583,105

556,719

533,150

Accumulated other comprehensive loss, net

(27,350

)

(27,721

)

(35,656

)

(35,911

)

(39,112

)

Total stockholders' equity

1,153,356

1,127,513

1,095,402

1,068,295

1,041,366

Total liabilities and stockholders' equity

8,485,162

8,495,437

8,435,861

8,216,458

8,097,387

Consolidated Capital Ratios as of:

December 31,

2025

September 30,

2025

June 30,

2025

March 31,

2025

December 31,

2024

Stockholders' equity to total assets

13.59

13.27

12.99

13.00

12.86

Tangible stockholders' equity to tangible assets 1

12.58

12.25

11.94

11.93

11.76

Tangible stockholders' equity to tangible assets reflecting net unrealized losses on HTM securities, net of tax 1, 2

12.54

12.21

11.90

11.89

11.71

Tier 1 leverage ratio

12.75

12.44

12.39

12.47

12.11

Common equity tier 1 risk-based capital ratio

14.12

13.79

13.78

13.26

13.18

Tier 1 risk-based capital ratio

14.12

13.79

13.78

13.26

13.18

Total risk-based capital ratio

15.73

15.81

15.94

15.52

15.42

Tangible stockholders’ equity and tangible assets have been adjusted to reflect net unrealized losses on held-to-maturity securities, net of tax.

Summary of Net Interest Margin:

For the three months ended

For the year ended

December 31, 2025

December 31, 2024

December 31, 2025

December 31, 2024

(In thousands)

Average

Balance

Average

Yield/Rate

Average

Balance

Average

Yield/Rate

Average

Balance

Average

Yield/Rate

Average

Balance

Average

Yield/Rate

Interest Earning Assets

Loans 1

6,825,404

6.37

6,481,701

6.51

6,634,643

6.41

6,410,520

6.58

Investment securities

506,964

3.35

519,221

3.40

506,294

3.45

529,209

3.49

Interest-bearing cash and other assets

583,717

3.68

491,326

4.48

599,588

4.14

380,967

5.02

Total earning assets

7,916,085

5.98

7,492,248

6.16

7,740,525

6.04

7,320,696

6.28

Other assets

519,607

542,862

536,383

543,650

Total assets

8,435,692

8,035,110

8,276,908

7,864,346

Interest-bearing liabilities

Demand and NOW deposits

831,419

2.98

703,087

3.45

785,777

3.18

633,123

3.63

Savings deposits

381,978

0.55

404,762

0.64

393,771

0.57

412,941

0.69

Money market deposits

2,879,668

2.36

2,348,328

2.23

2,709,997

2.40

2,161,618

2.11

Certificates of deposit

1,284,200

3.49

1,589,721

4.08

1,432,539

3.71

1,756,755

4.51

Total deposits

5,377,265

2.60

5,045,898

2.85

5,322,084

2.73

4,964,437

3.03

Repurchase agreements

9,146

1.71

10,964

1.45

8,956

1.67

15,557

1.21

Total deposits and repurchase agreements

5,386,411

2.60

5,056,862

2.85

5,331,040

2.73

4,979,994

3.03

FHLB borrowings

—

121,957

5.02

7,847

4.61

124,833

5.48

Other long-term borrowings

36,650

5.82

75,778

6.41

66,094

6.85

75,586

6.55

Total interest-bearing liabilities

5,423,061

2.62

5,254,597

2.95

5,404,981

2.78

5,180,413

3.14

Noninterest-bearing deposits

1,698,126

1,581,571

1,615,511

1,542,808

Other liabilities

167,658

152,552

153,460

140,529

Stockholders' equity

1,146,847

1,046,390

1,102,956

1,000,596

Total liabilities and stockholders' equity

8,435,692

8,035,110

8,276,908

7,864,346

Net interest spread

3.36

3.21

3.26

3.14

Net interest margin

4.18

4.09

4.10

4.06

Net interest margin (on FTE basis) 2

4.23

4.15

4.16

4.12

Includes loans held-for-investment, including nonaccrual loans, and loans held-for-sale.

Summary of Net Interest Margin (cont’d ):

For the three months ended

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

December 31, 2024

(In thousands)

Average

Balance

Average

Yield/Rate

Average

Balance

Average

Yield/Rate

Average

Balance

Average

Yield/Rate

Average

Balance

Average

Yield/Rate

Average

Balance

Average

Yield/Rate

Interest Earning Assets

Loans 1

6,825,404

6.37

6,667,158

6.49

6,620,493

6.43

6,420,710

6.36

6,481,701

6.51

Investment securities

506,964

3.35

505,999

3.43

510,350

3.48

501,809

3.53

519,221

3.40

Interest-bearing cash and other assets

583,717

3.68

714,885

4.25

596,713

4.28

500,857

4.37

491,326

4.48

Total earning assets

7,916,085

5.98

7,888,042

6.09

7,727,556

6.07

7,423,376

6.03

7,492,248

6.16

Other assets

519,607

540,079

537,156

548,976

542,862

Total assets

8,435,692

8,428,121

8,264,712

7,972,352

8,035,110

Interest-bearing liabilities

Demand and NOW deposits

831,419

2.98

796,192

3.29

793,461

3.26

720,700

3.21

703,087

3.45

Savings deposits

381,978

0.55

391,444

0.59

401,093

0.58

400,801

0.58

404,762

0.64

Money market deposits

2,879,668

2.36

2,852,860

2.58

2,659,342

2.42

2,441,737

2.19

2,348,328

2.23

Certificates of deposit

1,284,200

3.49

1,397,371

3.64

1,504,235

3.76

1,547,634

3.91

1,589,721

4.08

Total deposits

5,377,265

2.60

5,437,867

2.81

5,358,131

2.78

5,110,872

2.73

5,045,898

2.85

Repurchase agreements

9,146

1.71

8,055

1.82

9,024

1.61

9,615

1.57

10,964

1.45

Total deposits and repurchase agreements

5,386,411

2.60

5,445,922

2.81

5,367,155

2.78

5,120,487

2.73

5,056,862

2.85

FHLB borrowings

—

2,308

4.72

29,489

4.60

121,957

5.02

Other long-term borrowings

36,650

5.82

76,117

8.41

76,025

6.19

75,907

6.43

75,778

6.41

Total interest-bearing liabilities

5,423,061

2.62

5,522,039

2.89

5,445,488

2.83

5,225,883

2.79

5,254,597

2.95

Noninterest-bearing deposits

1,698,126

1,642,346

1,587,302

1,532,150

1,581,571

Other liabilities

167,658

145,730

145,064

155,337

152,552

Stockholders' equity

1,146,847

1,118,006

1,086,858

1,058,982

1,046,390

Total liabilities and stockholders' equity

8,435,692

8,428,121

8,264,712

7,972,352

8,035,110

Net interest spread

3.36

3.20

3.24

3.21

Net interest margin

4.18

4.07

4.09

Net interest margin (on FTE basis) 2

4.23

4.12

4.13

4.15

Includes loans held-for-investment, including nonaccrual loans, and loans held-for-sale.

Deposits as of:

($ in thousands)

December 31,

2025

September 30,

2025

June 30,

2025

March 31,

2025

December 31,

2024

Consumer

Noninterest-bearing deposit accounts

404,666

412,568

426,909

412,734

410,303

Interest-bearing deposit accounts:

Demand and NOW

110,155

129,148

113,415

93,675

61,987

Savings

308,655

314,954

322,672

330,489

326,916

Money market

1,880,973

1,885,609

1,803,348

1,600,413

1,516,577

Certificates of deposit

809,401

869,077

937,439

1,065,839

1,069,704

Total interest-bearing deposit accounts

3,109,184

3,198,788

3,176,874

3,090,416

2,975,184

Total consumer deposits

3,513,850

3,611,356

3,603,783

3,503,150

3,385,487

Business

Noninterest-bearing deposit accounts

1,246,707

1,261,929

1,279,769

1,162,002

1,130,855

Interest-bearing deposit accounts:

Demand and NOW

738,506

725,028

684,340

654,914

669,417

Savings

69,976

71,281

74,448

75,132

75,422

Money market

1,056,044

951,410

965,998

968,740

915,208

Certificates of deposit

57,349

57,225

56,930

65,420

51,131

Total interest-bearing deposit accounts

1,921,875

1,804,944

1,781,716

1,764,206

1,711,178

Total business deposits

3,168,582

3,066,873

3,061,485

2,926,208

2,842,033

Wholesale deposits 1

424,924

427,186

434,896

444,881

444,740

Total deposits

7,107,356

7,105,415

7,100,164

6,874,239

6,672,260

Wholesale deposits primarily consist of brokered deposits included in our condensed consolidated balance sheets within certificates of deposit.

Balance Sheet Ratios as of:

December 31,

2025

September 30,

2025

June 30,

2025

March 31,

2025

December 31,

2024

Cash to total assets 1

7.60

7.70

9.20

7.50

Loan to deposit ratio

93.9

94.0

91.6

94.3

95.6

Uninsured deposits to total deposits 2

36.6

36.2

37.0

35.2

34.8

Uninsured and uncollateralized deposits to total deposits 2

29.0

28.3

26.4

25.2

Wholesale deposits and borrowings to total liabilities 3

5.8

5.9

6.7

8.2

Cash consists of cash and amounts due from banks and interest-bearing deposits with other financial institutions.

Uninsured deposits and uninsured and uncollateralized deposits are reported for our wholly-owned subsidiary Sunflower Bank, N.A. and are estimated.

Wholesale deposits primarily consist of brokered deposits included in our condensed consolidated balance sheets within certificates of deposit. Wholesale borrowings consist of FHLB overnight and term advances.

Loan Portfolio as of:

($ in thousands)

December 31,

2025

September 30,

2025

June 30,

2025

March 31,

2025

December 31,

2024

Commercial and industrial 1

2,937,867

2,945,697

2,779,767

2,764,035

2,627,591

Commercial real estate:

Non-owner occupied

742,002

725,425

705,749

733,949

752,628

Owner occupied

700,774

668,172

660,334

677,341

700,867

Construction and land

268,652

343,803

383,969

386,056

362,677

Multifamily

210,368

183,504

134,520

85,239

94,355

Total commercial real estate

1,921,796

1,920,904

1,884,572

1,882,585

1,910,527

Residential real estate 2

1,221,086

1,209,742

1,226,760

1,195,714

1,180,610

Public Finance

501,582

516,247

524,441

551,252

554,784

Consumer

32,651

38,931

42,881

38,896

41,144

Other

58,198

50,108

48,645

51,526

61,701

Loans, net of deferred costs, fees, premiums, and discounts

6,673,180

6,681,629

6,507,066

6,484,008

6,376,357

As of September 30, 2025, loans to nondepository financial institutions are now included within commercial and industrial. Prior period amounts have been reclassified to conform to the current presentation.

Includes 1-4 family residential construction.

Asset Quality:

As of and for the three months ended

As of and for the year ended

($ in thousands)

December 31,

2025

September 30,

2025

June 30,

2025

March 31,

2025

December 31,

2024

December 31,

2025

December 31,

2024

Net charge-offs (recoveries)

5,024

9,053

13,547

631

(462

)

28,255

20,377

Allowance for credit losses

85,016

84,040

82,993

91,790

88,221

85,016

88,221

Nonperforming loans, including nonaccrual loans, and accrual loans greater than 90 days past due

60,771

69,641

54,841

78,590

69,050

60,771

69,050

Nonperforming assets

72,285

83,059

67,893

83,504

74,188

72,285

74,188

Ratio of net charge-offs (recoveries) to average loans outstanding

0.30

0.55

0.83

0.04

(0.03

0.43

0.32

Allowance for credit losses to loans outstanding

1.27

1.26

1.28

1.42

1.38

1.27

1.38

Allowance for credit losses to nonperforming loans

139.90

120.68

151.33

116.80

127.76

139.90

127.76

Nonperforming loans to loans

0.91

1.04

0.84

1.21

1.08

0.91

1.08

Nonperforming assets to total assets

0.85

0.98

0.80

1.02

0.92

0.85

0.92

Non-GAAP Financial Measures and Reconciliations:

As of and for the three months ended

As of and for the year ended

($ in thousands, except share and per share amounts)

December 31,

2025

September 30,

2025

June 30,

2025

March 31,

2025

December 31,

2024

December 31,

2025

December 31,

2024

Tangible stockholders’ equity to tangible assets:

Total stockholders' equity (GAAP)

1,153,356

1,127,513

1,095,402

1,068,295

1,041,366

1,153,356

1,041,366

Less: Goodwill and other intangible assets

Goodwill

(93,483

)

(93,483

)

(93,483

)

(93,483

)

(93,483

)

(93,483

)

(93,483

)

Other intangible assets

(4,983

)

(5,650

)

(6,228

)

(6,806

)

(7,434

)

(4,983

)

(7,434

)

Tangible stockholders' equity (non-GAAP)

1,054,890

1,028,380

995,691

968,006

940,449

1,054,890

940,449

Total assets (GAAP)

8,485,162

8,495,437

8,435,861

8,216,458

8,097,387

8,485,162

8,097,387

Less: Goodwill and other intangible assets

Goodwill

(93,483

)

(93,483

)

(93,483

)

(93,483

)

(93,483

)

(93,483

)

(93,483

)

Other intangible assets

(4,983

)

(5,650

)

(6,228

)

(6,806

)

(7,434

)

(4,983

)

(7,434

)

Tangible assets (non-GAAP)

8,386,696

8,396,304

8,336,150

8,116,169

7,996,470

8,386,696

7,996,470

Total stockholders' equity to total assets (GAAP)

13.59

13.27

12.99

13.00

12.86

13.59

12.86

Less: Impact of goodwill and other intangible assets

(1.01

(1.02

(1.05

(1.07

(1.10

(1.01

(1.10

Tangible stockholders' equity to tangible assets (non-GAAP)

12.58

12.25

11.94

11.93

11.76

12.58

11.76

Tangible stockholders’ equity to tangible assets, reflecting net unrealized losses on HTM securities, net of tax:

Tangible stockholders' equity (non-GAAP)

1,054,890

1,028,380

995,691

968,006

940,449

1,054,890

940,449

Less: Net unrealized losses on HTM securities, net of tax

(3,320

)

(3,432

)

(4,238

)

(3,803

)

(4,292

)

(3,320

)

(4,292

)

Tangible stockholders’ equity less net unrealized losses on HTM securities, net of tax (non-GAAP)

1,051,570

1,024,948

991,453

964,203

936,157

1,051,570

936,157

Tangible assets (non-GAAP)

8,386,696

8,396,304

8,336,150

8,116,169

7,996,470

8,386,696

7,996,470

Less: Net unrealized losses on HTM securities, net of tax

(3,320

)

(3,432

)

(4,238

)

(3,803

)

(4,292

)

(3,320

)

(4,292

)

Tangible assets less net unrealized losses on HTM securities, net of tax (non-GAAP)

8,383,376

8,392,872

8,331,912

8,112,366

7,992,178

8,383,376

7,992,178

Tangible stockholders’ equity to tangible assets (non-GAAP)

12.58

12.25

11.94

11.93

11.76

12.58

11.76

Less: Impact of net unrealized losses on HTM securities, net of tax

(0.04

(0.05

(0.04

(0.05

Tangible stockholders’ equity to tangible assets reflecting net unrealized losses on HTM securities, net of tax (non-GAAP)

12.54

12.21

11.90

11.89

11.71

12.54

11.71

Tangible book value per share:

Total stockholders' equity (GAAP)

1,153,356

1,127,513

1,095,402

1,068,295

1,041,366

1,153,356

1,041,366

Tangible stockholders' equity (non-GAAP)

1,054,890

1,028,380

995,691

968,006

940,449

1,054,890

940,449

Total shares outstanding

27,887,337

27,854,764

27,834,525

27,753,918

27,709,679

27,887,337

27,709,679

Book value per share (GAAP)

41.36

40.48

39.35

38.49

37.58

41.36

37.58

Tangible book value per share (non-GAAP)

37.83

36.92

35.77

34.88

33.94

37.83

33.94

Adjusted net income:

Net income (GAAP)

24,807

23,174

26,386

23,569

16,350

97,936

75,628

Add: Adjustments

Merger related expenses, net of tax

2,116

238

215

—

5,799

2,569

9,949

Write-off of Guardian Mortgage tradename, net of tax

—

625

—

625

Disposal of ATMs, net of tax

—

1,542

—

1,542

Total adjustments, net of tax

2,116

238

215

—

7,966

2,569

12,116

Adjusted net income (non-GAAP)

26,923

23,412

26,601

23,569

24,316

100,505

87,744

Adjusted diluted earnings per share:

Diluted earnings per share (GAAP)

0.88

0.82

0.93

0.83

0.58

3.47

2.69

Add: Impact of adjustments

Merger related expenses, net of tax

0.07

0.01

—

0.21

0.09

0.36

Write-off of Guardian Mortgage tradename, net of tax

—

0.02

—

0.02

Disposal of ATMs, net of tax

—

0.05

—

0.06

Adjusted diluted earnings per share (non-GAAP)

0.95

0.83

0.94

0.83

0.86

3.56

3.13

Adjusted return on average total assets:

Return on average total assets (ROAA) (GAAP)

1.17

1.09

1.28

1.20

0.81

1.18

0.96

Add: Impact of adjustments

Merger related expenses, net of tax

0.10

0.01

—

0.28

0.03

0.13

Write-off of Guardian Mortgage tradename, net of tax

—

0.03

—

0.01

Disposal of ATMs, net of tax

—

0.08

—

0.02

Adjusted ROAA (non-GAAP)

1.27

1.10

1.29

1.20

1.21

1.12

Adjusted return on average stockholders’ equity:

Return on average stockholders' equity (ROACE) (GAAP)

8.58

8.22

9.74

9.03

6.22

8.88

7.56

Add: Impact of adjustments

Merger related expenses, net of tax

0.73

0.09

0.08

—

2.19

0.23

1.00

Write-off of Guardian Mortgage tradename, net of tax

—

0.24

—

0.06

Disposal of ATMs, net of tax

—

0.59

—

0.15

Adjusted ROACE (non-GAAP)

9.31

8.31

9.82

9.03

9.24

9.11

8.77

Return on average tangible stockholders’ equity

Return on average stockholders’ equity (ROACE) (GAAP)

8.58

8.22

9.74

9.03

6.22

8.88

7.56

Add: Impact from goodwill and other intangible assets

Goodwill

0.81

0.98

0.94

0.67

0.88

0.87

Other intangible assets

0.19

0.17

0.19

0.21

0.47

0.19

0.31

Return on average tangible stockholders’ equity (ROATCE) (non-GAAP)

9.58

9.20

10.91

10.18

7.36

9.95

8.74

Adjusted return on average tangible stockholders’ equity:

Return on average tangible stockholders' equity (ROATCE) (non-GAAP)

9.58

9.20

10.91

10.18

7.36

9.95

8.74

Add: Impact of adjustments

Merger related expenses, net of tax

0.80

0.10

0.09

—

2.45

0.26

1.11

Write-off of Guardian Mortgage tradename, net of tax

—

0.26

—

0.07

Disposal of ATMs, net of tax

—

0.65

—

0.17

Adjusted ROATCE (non-GAAP)

10.38

9.30

11.00

10.18

10.72

10.21

10.09

Adjusted total noninterest expense:

Total noninterest expense (GAAP)

72,041

68,901

68,110

62,722

73,673

271,774

264,040

Less: Adjustments:

Merger related expenses

(2,217

)

(241

)

(285

)

—

(8,010

)

(2,743

)

(13,178

)

Write-off of Guardian Mortgage tradename

—

(828

)

—

(828

)

Disposal of ATMs

—

(2,042

)

—

(2,042

)

Total adjustments

(2,217

)

(241

)

(285

)

—

(10,880

)

(2,743

)

(16,048

)

Adjusted total noninterest expense (non-GAAP)

69,824

68,660

67,825

62,722

62,793

269,031

247,992

Adjusted efficiency ratio:

Efficiency ratio (GAAP)

65.37

64.22

64.52

65.19

74.66

64.82

68.28

Less: Impact of adjustments

Merger related expenses

(2.01

(0.22

(0.27

—

(8.12

(0.65

(3.41

Write-off of Guardian Mortgage tradename

—

(0.84

—

(0.21

Disposal of ATMs

—

(2.07

—

(0.53

Adjusted efficiency ratio (non-GAAP)

63.36

64.00

64.25

65.19

63.63

64.17

64.13

Fully tax equivalent (“FTE”) net interest income and net interest margin:

Net interest income (GAAP)

83,461

80,953

78,499

74,478

77,047

317,391

296,910

Gross income effect of tax exempt income

1,156

1,225

1,204

1,192

1,161

4,777

4,767

FTE net interest income (non-GAAP)

84,617

82,178

79,703

75,670

78,208

322,168

301,677

Average earning assets

7,916,085

7,888,042

7,727,556

7,423,376

7,492,248

7,740,525

7,320,696

Net interest margin

4.18

4.07

4.09

4.10

4.06

Net interest margin on FTE basis (non-GAAP)

4.23

4.12

4.13

4.15

4.16

4.12