Central Bancompany, Inc.
For the period ended Jun 30, 2026. Filed Aug 14, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 14, 2026
CBC$37.75+0.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-15.
0001628280-26-035492
Item 2. Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-14.
0001628280-26-057081
Item 2. Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 137 previous paragraphs and 158 current paragraphs.
70 unchanged; 42 reworded; 44 added; 25 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 19 previous and 22 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (44)
Current report
The second quarter and first half of 2026 were characterized by moderate economic growth, with GDP expanding at a 2.6% forecast rate and unemployment remaining stable near 4.3%, supported by continued strength across the Company's Midwest markets. The Federal Reserve held the prime rate at 6.75% at quarter-end, with expectations of gradual easing toward 6.25% over the near-term horizon, while rising intermediate-term market interest rates during the period created both valuation pressure on fixed-rate securities and attractive reinvestment opportunities. Elevated energy prices and geopolitical uncertainty contributed to a cautious business environment, though disruptions remained contained and did not materially affect credit performance across the Company's loan portfolio.
Current report
•Net income of $113.8 million, or $0.47 per fully diluted share, compared to $91.4 million and$0.41 for the three months ended June 30, 2025.
Current report
•Adjusted net income (non-GAAP)1 of $113.3 million, or $0.47 per fully diluted share, compared to $97.9 million and $0.44 for the three months ended June 30, 2025.
Current report
•Net income of $224.9 million, or $0.94 per fully diluted share, compared to $186.2 million and $0.84 for the six months ended June 30, 2025.
Current report
•Adjusted net income (non-GAAP)1 of $224.4 million, or $0.93 per fully diluted share, compared to $192.6 million and $0.87 for the six months ended June 30, 2025
Current report
•ROAA of 2.22% compared to ROAA of 1.95% in the prior year
Current report
•Efficiency ratio of 46.4%; Adjusted efficiency ratio 1, 2 of 45.9%, compared to 50.5% and 48.5% respectively, in the prior year
Current report
Net interest income increased for both the three and six months ended June 30, 2026, compared to the corresponding periods in 2025, primarily due to growth in average earning assets and expansion of the net interest margin. Average earning assets increased 5.7% and 6.4% for the three and six month periods, respectively, reflecting growth in deposits, retained earnings, and capital generated through our initial public offering.
Current report
For the three months ended June 30, 2026, net interest income increased $17.7 million, or 9.1%, to $212.8 million. On an FTE basis, net interest income (non-GAAP) increased 9.0% to $214.4 million. Net interest margin increased 13 bps to 4.40%4.40%, while net interest margin (FTE) (non-GAAP) increased 13 bps to 4.43%.
Current report
For the six months ended June 30, 2026, net interest income increased $37.1 million, or 9.6%, to $421.4 million. On an FTE basis, net interest income (non-GAAP) increased 9.6% to $424.8 million. Net interest margin increased 13 bps to 4.36%, while net interest margin (FTE) (non-GAAP) increased 13 bps to 4.39%.
Current report
Total interest income increased for both periods, driven by earning asset growth, continued repricing of loans and securities, and deployment of deposit and IPO-related funding into securities. Total interest income increased 6.0% to $260.4 million for the quarter and 6.7% to $518.5 million for the six month period. On an FTE basis (non-GAAP), total interest income increased 6.0% to $262.0 million and 6.7% to $521.9 million, respectively.
Current report
Interest expense decreased due primarily to lower rates paid on time deposits, federal funds purchased, and customer repurchase agreements, partially offset by growth in savings and interest-bearing deposits. Interest expense declined $3.0 million, or 5.9%, for the quarter and $4.5 million, or 4.4%, for the six month period compared to the corresponding periods in 2025.
Current report
The provision for credit losses, including provision for off-balance sheet credit exposures, was $6.7 million for the six months ended June 30, 2026, compared to $2.9 million for the six months ended June 30, 2025. For the three months ended June 30, 2026, the provision was $3.5 million compared to a net recovery in the prior-year quarter. The lower provision expense in the prior-year quarter was primarily driven by a $5.0 million reserve release associated with the reclassification of the consumer lease portfolio as held for sale in June 2025, which reduced the allowance for credit losses in the Consumer Banking segment. Excluding this, the current-quarter provision decrease compared to the prior-year quarter primarily reflects changes in portfolio composition, including the continued strategic de-emphasis of the indirect consumer lending portfolio.
Current report
Noninterest income was $69.6 million for the three months ended June 30, 2026, an increase of $19.5 million, or 38.9%, compared to $50.1 million for the same period in 2025. Theincrease was primarily driven by continued growth in wealth management services, as discussed below. Current quarter results also included $8.4 million of gains recognized on holdings of Visa B shares, partially offset by a $7.8 million loss related to the selective repositioning of certain investment securities to capitalize on attractive market opportunities. In addition, results for thesecond quarter of 2025 were reduced by a $13.6 million loss associated with the sale of the consumer lease portfolio, which was recorded in other income.
Current report
For the six months ended June 30, 2026, noninterest income was $134.6 million, an increase of $25.8 million, or 23.7%, compared to $108.9 million for the same period in 2025. The increase primarily reflected growth in wealth management services, driven by continued strong growth in assets under advice. Results for the first six months of 2026 also benefited from the Visa B share gains, while the prior-year period was impacted by the $13.6 million consumer lease portfolio loss. These factors were partially offset by the $7.8 million loss recognized on the repositioning of investment securities during the second quarter of 2026.
Current report
Wealth management services. Wealth management services consists of brokerage services and fiduciary service fees earned from trust asset management and investment advisory services. For the three months ended June 30, 2026, wealth management services increased $3.9 million, or 20.3%, to $23.2 million compared to the same period in 2025. For the six months ended June 30, 2026, wealth management services increased $7.0 million, or 18.2%, to $45.5 million compared to the same period in 2025. The increases were primarily driven by higher average assets under advice resulting from favorable market performance during both the quarterly and year to date periods. The year to date increase also reflected the benefit of new assets under advice and favorable net client fee growth. Assets under advice grew $3.0 billion from June 2025, or 21.3%, to $17.3 billion at June 30, 2026.
Current report
Net Occupancy and Equipment. Net occupancy and equipment increased $0.7 million, or 6.2% to$12.4 million for the first three months ended June 30, 2026, compared to the same period in 2025. Net occupancy and equipment was$24.6 million for the firstsix months of 2026, an increase of$1.0 million, or 4.5%, compared to$23.5 million for the same period in 2025. This increase was primarily the result of continued investment in our branch network, with the opening of four new full-service branches since June 2025.
Current report
For the three months ended June 30, 2026, Consumer Banking net income increased $10.0 million, or 35.0%, to $38.5 million compared to the same period in 2025. The increase was primarily due the expected sale of the consumer lease portfolio in June 2025, which resulted in a $13.6 million loss. This was partially offset by the $5 million release of the provision that increased Consumer Banking net income during 2025.
Current report
For the six months ended June 30, 2026, Consumer Banking net income increased $14.7 million, or 24.4%, to $75.1 million compared to the same period in 2025. The increase was primarily driven by growth in net interest income of $11.6 million, or 7.5%, and a $17.9 million improvement in noninterest income largely reflecting the absence of the $13.6 million consumer lease portfolio loss recognized in the second quarter of 2025. These increases were partially offset by a $5 million increase in provision expense, resulting from the expected sale of the consumer leasing portfolio in June 2025.
Current report
For the six months ended June 30, 2026, Wealth Management net income increased $3.2 million, or 36.9%, to $12.0 million compared to the same period in 2025. The increase was driven by noninterest income growth of $6.6 million, or 17.9%, reflecting continued strong growth in assets under advice, which increased $3.0 billion, or 21.3%, to $17.3 billion at June 30, 2026, driven by strong net new asset inflows partially offset by market movement.
Current report
•Total assets decreased 2.2% to $20.3 billion as of June 30, 2026 from $20.8 billion as of December 31, 2025, reflecting a net decline in deposits. This is driven by the expected outflow of seasonal deposits, primarily public funds.
Current report
•Investment securities grew $650 million, an increase of 10.1% from December 31, 2025. Growth was driven by the strategic repositioning of excess liquidity into higher-yielding investment securities as IORB rates declined over the previous two years, and reduced returns on excess Federal Reserve balances. During the period, the Company repositioned approximately $210 million of securities yielding 2.0% into approximately $202 million of securities yielding 4.5% and extended effective duration of those securities from 1.7 years to 3.3 years.
Current report
•Total deposits decreased $484.8 million, or 3.1%, to $15.4 billion as of June 30, 2026 from $15.9 billion as of December 31, 2025. The decrease was primarily driven by the expected outflow of seasonal deposits, primarily public funds. Noninterest-bearing demand deposits remained relatively stable, comprising 36.2% of total deposits at June 30, 2026, compared to 35.4% at December 31, 2025, reflecting the continued strength of our core deposit franchise.
Current report
•Total stockholders' equity grew by $82 million, an increase of 2.2% from December 31, 2025. The growth is primarily due to earnings retention less stock repurchases of$39.2 million, including shares acquired to satisfy tax withholding obligations associated with equity compensation plans.
Current report
Commercial loans totaled $7.2 billion at June 30, 2026, representing an increase of $152 million, or 2.2%, compared to December 31, 2025. Growth during the first six months of 2026 was primarily driven by non-owner occupied commercial real estate, which increased $99 million, and commercial, financial, and agricultural loans, which grew $38 million, reflecting continued strong business banking activity across our primary markets. Owner-occupied commercial real estate increased $16 million, while construction and development loans were essentially flat, consistent with normal project completion activity.
Current report
Residential and consumer loans totaled $4.5 billion at June 30, 2026, an increase of $88 million, or 2.0%, compared with December 31, 2025. Growth was driven primarily by increases in residential mortgage loans of $154 million, or 4.6%, reflecting strong demand for adjustable-rate mortgage products and residential construction financing, as well as a $22 million, or 5.5%, increase in home equity lines of credit. These increases were partially offset by an $89 million decline in other consumer loans, primarily attributable to the completion of the consumer lease portfolio sale and the continued strategic, de-emphasis of indirect consumer lending. The change in portfolio composition reflects the Company's strategic focus on expanding residential real estate lending while reducing exposure to selected consumer lending segments. Credit quality within the residential mortgage portfolio remained strong at June 30, 2026, supported by an average loan‑to‑value ratio, calculated based on original property valuation, of 59%, an average debt‑to‑income ratio, calculated at loan origination of 38.9%, and an average FICO score, measured at loan origination, of 728.
Current report
As illustrated in the chart below, net charge-offs remained low relative to average loans and improved from the levels reported in the comparable 2025 periods.
Current report
Net charge-offs totaled $5.9 million for the six months ended June 30, 2026, compared to $7.8 million for the same period in 2025. For the three months ended June 30, 2026, net charge-offs were $3.0 million, compared to $4.3 million in the prior year quarter. Annualized net charge-offs represented 0.10% of average total loans for the quarter, compared to 0.15% in the prior year period. Despite the increase in provision expense during the period, net charge-off levels remained low, reflecting the continued strength of the Company's credit quality.
Current report
Nonaccrual loans totaled $55.1 million as of June 30, 2026, an increase of $10.5 million, or 23.4%, from $44.7 million at December 31, 2025. The increase was concentrated in the commercial portfolio and reflected the migration of a limited number of borrower relationships to nonaccrual status during the first half of 2026. Higher nonaccrual balances in non-owner-occupied commercial real estate and commercial, financial, and agricultural loans accounted for most of the increase, rising $7.1 million and $4.6 million, respectively. The deterioration was isolated to a few borrower-specific commercial credits that are being actively managed toward resolution and did not reflect a broader weakening in portfolio credit quality. Residential mortgage nonaccruals declined modestly during the period, reflecting continued stability in the consumer portfolio. Despite the increase in nonaccrual loans, overall asset quality remained favorable, with nonperforming loans representing 0.49% of loans held for investment at June 30, 2026.
Current report
The allowance is measured primarily on a collective basis using an average historical loss methodology. Loans are pooled based on shared risk characteristics, including borrower and collateral type, while loans that do not share similar risk characteristics, primarily certain larger nonaccrual loans, are evaluated individually.
Current report
At June 30, 2026, the allowance for credit losses was $150.4 million, or 1.29% of total loans and leases, compared to $149.4 million, or 1.31%, at December 31, 2025. The ratio of the allowance for credit losses to nonperforming loans decreased to 263% at June 30, 2026, from 325% at December 31, 2025, primarily due to higher nonperforming loan balances during the first six months of 2026. While nonperforming loans increased during the period, management believes the related credit stress remains limited to a small number of commercial relationships and does not reflect broad-based deterioration in portfolio quality. Based on current portfolio composition, credit performance, economic conditions, and the continued low level of net charge-offs, management believes the allowance for credit losses remains adequate. The Company continues to closely monitor watch list and substandard-rated credits, particularly within the non-owner-occupied commercial real estate and commercial, financial, and agricultural loan portfolios, and will adjust the allowance as warranted by changes in borrower performance or economic conditions.
Current report
Management evaluates the adequacy of the allowance for credit losses on a quarterly basis using the best information available at the time of the assessment. Because the allowance is based on estimates and assumptions regarding borrower performance, economic conditions, and other factors, future adjustments may be necessary as those conditions change.
Current report
During the second quarter of 2026, the Company redeployed a portion of its excess liquidity held at the Federal Reserve into investment securities, primarily U.S. Treasury, agency CMBS, and agency RMBS securities. The Company also repositioned approximately $210 million of available-for-sale securities with a 2.0% book yield and 1.7-year effective duration into approximately $202 million of securities with a 4.5% book yield and 3.3-year effective duration, recognizing net losses of $7.8 million. Management expects the resulting increase in interest income to recover the recognized losses within approximately two years and improve earnings performance across a range of interest rate environments
Current report
The table below presents the estimated impact on net interest income and EVE from immediate parallel changes in interest rates as of June 30, 2026. The Company maintained a modestly asset-sensitive interest rate risk profile at quarter-end, with net interest income and EVE responding positively to rising rate scenarios and negatively to declining rate scenarios. The strategic redeployment of excess Federal Reserve cash balances into intermediate-duration investment securities and the selective portfolio repositioning executed during the second quarter reduced the Company's overall asset sensitivity compared to prior periods.
Current report
We have maintained a strong liquidity position throughout the first six months of 2026, with total readily available liquidity increasing to $6.8 billion at June 30, 2026 from $6.7 billion at December 31, 2025, representing 34% of total assets. We continue to fund our balance sheet primarily through a stable core deposit base, with a loan-to-deposit ratio of 76% and no FHLB advances or other wholesale borrowings outstanding at quarter-end. The following discussion addresses liquidity at both the Bank and holding company levels.
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Removed paragraphs (25)
Previous report
•Net income of $111.1 million, or$0.46 per fully diluted share, compared to $94.8 million and$0.43 for the three months ended March 31, 2025.
Previous report
Net interest income totaled $208.6 million for the three months ended March 31, 2026, an increase of$19.3 million, or 10.2%, compared to$189.3 million for the three months ended March 31, 2025. On an FTE basis, net interest income (FTE) (non-GAAP)increased to$210.4 million from$190.9 million, an increase of 10.3%. Our net interest margin increased 13 basis points to 4.32% for the quarter compared to 2025, driven by solid underlying average earning asset growth of $1.3 billion, or 7%, resulting from growing deposits, earnings retention and our IPO. These funds have largely been invested in securities and short-term earning assets. Our net interest margin (FTE) (non-GAAP)increased to 4.36% in the same three months of 2026, compared to 4.23% for the same period in 2025.
Previous report
Total interest income was $258.1 million for the three months ended March 31, 2026, an increase of$17.8 million, or 7.4%, compared to$240.2 million for thesame period in 2025. On an FTE basis, total interest income (FTE) (non-GAAP) was$259.9 million for the quarter, an increase of$18.1 million, or 7.5%, compared to $241.8 million in the same quarter of the prior year. Theincrease wasprimarily due tothe repositioning of theinvestment portfolio, from lower-yielding bonds to higher-yielding investments at higher market rates, the investment of IPOproceeds, and the growth in deposits.
Previous report
Interest expense decreased $1.5 million, or 2.9%, to$49.4 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. Thedecrease was driven by reduced costs on time deposits, federal funds purchased, and customer repurchase agreements, as rates began tolower after rate cuts by the Federal Reserve began in 2024, partially offset by increased volume on savings and interest bearing deposits.
Previous report
The provision for credit losses, including provision for off-balance sheet credit exposures, was $3.1 million for the three months ended March 31, 2026, an increase of$0.2 million, or 7.7%, compared to$2.9 millionfor the three months ended March 31, 2025. Theincrease compared to prior-year quarter primarily reflected higher average loan balances during thefirst quarter of 2026, whereas loan balances declined during thethree months ended March 31, 2025, in addition to the impact of portfolio mix and economic assumptions incorporated into the allowance for credit losses methodology.
Previous report
Noninterest income was $65.1 million for the three months ended March 31, 2026, an increase of $6.3 million, or 10.7%, compared to $58.8 million for the three months ended March 31, 2025. The increase was primarily due to a 14.8%, or$1.8 million, increase in fees for fiduciary services along with growth in brokerage services of 18.2%, or$1.2 million. Additionally, in the current quarter, a $1.7 million gain was recognized in other income from the liquidation of the consumer lease portfolio. Significant components of theincrease in noninterest income are described in further detail below.
Previous report
Brokerage services and fees for fiduciary services. Brokerage services and fees for fiduciary services relate to our wealth management services and comprise of fees earned for management of trust assets and investment services. Brokerage services increased $1.2 million, or 18.2%, to $7.9 million for the first three months of 2026, compared to the same period in 2025. The increase primarily reflected higher average assets under advice driven by continued strong net new AUA, partially offset by a reduction from market movement during the quarter. Fees for fiduciary services increased 14.8%, or$1.8 million, to$14.3 million for the same period.
Previous report
For the three months ended March 31, 2026, Consumer Banking net income increased $4.7 million, or 14.9%, to $36.6 million compared to the same period in 2025. The increase was primarily due to increased net interest income of 8.1% and a $1.7 million gain on finalization of the consumer lease portfolio sale, partially offset by increased noninterest expenses of 5.2%.
Previous report
•Total assets remained stable with a decrease of 1.4% from December 31, 2025.
Previous report
•Investment securities grew $369 million, an increase of 5.7% from December 31, 2025. As of March 31, 2026, 99.0% of our investment portfolio consisted of securities guaranteed by the U.S. government, its agencies, or sponsored enterprises and available-for-sale securities represented 99.3% of our total portfolio.
Previous report
•Total deposits declined by $397.2 million, a decrease of 2.5% from December 31, 2025. The decrease was primarily due to the outflow of seasonal deposits gathered at year-end.
Previous report
•Total stockholders' equity grew by $14 million, an increase of 0.4% from December 31, 2025.
Previous report
Commercial loans totaled $7 billion at March 31, 2026, representing an increase of $41 million, or 0.6%, compared to December 31, 2025. Growth during the quarter was primarily attributable to increases in both owner‑occupied and non‑owner‑occupied commercial real estate loan balances, partially offset by expected reductions in construction loan balances and a modest decline in commercial, financial, and agricultural loans. Overall credit quality within the commercial loan portfolio remained strong during the first quarter of 2026. While commercial loan delinquencies increased during the quarter, the change was primarily related to the migration of a limited number of larger commercial relationships to non‑performing status.
Previous report
Residential and consumer loans totaled $4 billion at March 31, 2026, representing an increase of $56 million, or 1.3%, from December 31, 2025. During the quarter, indirect consumer lending balances continued to decline and the consumer leasing portfolio was sold. These changes reflect the Company’s ongoing, deliberate rebalancing of its consumer loan portfolio.
Previous report
The residential mortgage portfolio continues to demonstrate strong credit fundamentals, reflected in an average loan‑to‑value ratio of 59%, an average debt‑to‑income ratio of 38.9%, and an average FICO score of 727. Residential mortgage loans accounted for 30% of total loans held for investment as of March 31, 2026, an increase of 3.1%, or $102 million, from December 31, 2025. The increase was primarily due to continued growth in adjustable-rate mortgages, along with growth in residential construction and development loans. The mortgage portfolio remains well diversified with originations during the quarter averaging $343 thousand per loan.
Previous report
Nonaccrual loans totaled $51.4 million as of March 31, 2026, an increase of $6.7 million, or 15.0%, compared to $44.7 million as of December 31, 2025. The increase was primarily driven by an increase in commercial, financial, and agricultural. The increase was primarily driven by one relationship migrating to nonaccrual during the quarter.
Previous report
We measure the allowance for credit losses using an average historical loss model which incorporates relevant information about past events (including historical credit loss experience on loans with similar risk characteristics), current conditions, and reasonable and supportable forecasts that affectthe collectability of the remaining cash flows over the contractual term of the loans. The allowance for credit losses is measured on a collective (pool) basis. Loans are aggregated into pools based on similar risk characteristics including borrower type and collateral type. Loans that do not share similar risk characteristics, primarily large loans on nonaccrual status are evaluated on an individual basis.
Previous report
In the three months ended March 31, 2026, we recorded net charge-offs of $2.9 million, compared to net charge-offs of $3.5 million in the three months ended March 31, 2025, a decrease of $0.5 million, or 15.7%. Net charge-offs as a percentage of average total loans were 0.10% in the three months ended March 31, 2026, compared to 0.12% from the same period in 2025.
Previous report
At March 31, 2026, theallowance for credit losses was $149.9 million, or 1.30% of our total loan and leases portfolio, compared with $153.7 million, or 1.31%, in the same period in 2025.
Previous report
Management will continue to evaluate the loan portfolio and assess economic conditions in order to determine future allowance levels and the amount of credit loss provision. We review the appropriateness of our allowance for credit losses on a quarterly basis. While we use the best information available to make evaluations, future adjustments to the allowance may become necessary if conditions change substantially from the conditions that we used in previous evaluations.
Previous report
During the first quarter of 2026, the Company maintained average balances of approximately$1.5 billion in short‑term interest‑earning assets held at the Federal Reserve. Early in the quarter, management began redeploying a portion of these balances into the investment securities portfolio as part of its ongoing balance sheet and interest rate risk management strategy. Management initially approached investment activity conservatively due to the interest rate environment early in the quarter, and increased the pace of purchases as market yields became more favorable later in the quarter and into April. Securities purchased consisted primarily of U.S. Treasury, agency CMBS, and RMBS securities with durations generally ranging from approximately 3.0 to 4.5 years and were intended to reduce asset sensitivity and enhance the stability of interest income.
Previous report
During the first three months of 2026, there was no sale of common and preferred stock. $0.1 million in net gains were recorded on common or preferred stock in the first three months of 2025.
Previous report
We monitor and stress test key modeling assumptions to assess their impact on results and identify drivers of changes in the Company’s interest rate risk profile. The table below presents the estimated impact on net interest income and EVE from immediate parallel changes in interest rates.
Previous report
Total deposit ending balances as of March 31, 2026 were $15.5 billion, a decrease of $397.2 million, or 2.5%, compared to $15.9 billion as of December 31, 2025. The decrease was due to the outflow of seasonal public funds deposits.
Previous report
FDIC deposit insurance covers $250 thousand per depositor, per FDIC-insured bank, for each account ownership category. Our total estimated uninsured deposits were $6.4 billion and$6.9 billion as of March 31, 2026 and December 31, 2025, respectively.
Reworded paragraphs (42)
Previous wording
The following table presents selected financials from our income statement and the performance ratios discussed below.
Current wording
The following table presents selected financials from our income statement and performance ratios.
Previous wording
•ROAA of 2.20% compared to ROAA of 2.00% in the prior year quarter.
Current wording
•ROAA of 2.24% compared to ROAA of 1.90% in the prior year quarter.
Previous wording
•Efficiency ratio of 46.3%; Adjusted efficiency ratio 1 of 45.7%, compared to 49.3% and 48.7% respectively in the prior year quarter.
Current wording
•Efficiency ratio of 46.5%; Adjusted efficiency ratio 1, 2 of 46.1%, compared to 51.7% and 48.4% respectively, in the prior year quarter.
Previous wording
2 Loan balances include mortgage loans held for sale and nonaccrual loans of $51.4 million and$48.8 million as of March 31, 2026 and 2025, respectively.
Current wording
2 Loan balances include mortgage loans held for sale and nonaccrual loans of $55.1 million and$46.4 million as of June 30, 2026 and 2025, respectively.
Previous wording
The following table presents noninterest income for the three months ended March 31, 2026 and 2025.
Current wording
The following table presents noninterest income for the three and six months ended June 30, 2026 and 2025.
Previous wording
Other income. Other income includes bank owned life insurance income, check commission, gain on sale of assets, and other miscellaneous income items. Other income increased $1.7 million, to $2.5 million for the first three months of 2026, compared to the same period in 2025. The increase was driven by a $1.7 million gain that was recognized from the liquidation of the consumer lease portfolio in the first three months of 2026.
Current wording
Other income. Other income includes bank owned life insurance income, check commission, gain on sale of assets, and other miscellaneous income items. Other income was $2.0 million for the three months ended June 30, 2026, compared to the loss of $12.0 million in the prior year quarter. For the six months ended June 30, 2026, other income was $4.6 million, compared to a loss of $11.1 million for the same period in 2025. The year-over-year increases were primarily attributable to the $13.6 million loss recognized in June 2025 on the sale of the consumer lease portfolio.
Previous wording
1 This is a non-GAAP financial measure we believe is helpful in interpreting our financial results. For more information on non-GAAP measures and for a reconciliation to the most directly comparable GAAP financial measure, see “—Non-GAAP Financial Measures Reconciliations.”
Current wording
1 This is a non-GAAP financial measures we believe are helpful in interpreting our financial results. For more information on non-GAAP measures and for a reconciliation to the most directly comparable GAAP financial measure, see “—Non-GAAP Financial Measures Reconciliations.”
Previous wording
The following table presents the major componentsof our noninterest expense for the three months ended March 31, 2026 and 2025:
Current wording
The following table presents the major componentsof our noninterest expense for the three and six months ended June 30, 2026 and 2025:
Previous wording
Total noninterest expense was $126.6 million for the three months ended March 31, 2026, an increase of $4.4 million, or 3.6%, compared to $122.3 million for the three months ended March 31, 2025. The increase was primarily due to increases in salaries and employee benefits, legal and professional fees, and bankcard processing, rewards and related costs, partially offset by a reduction in other expenses.
Current wording
Total noninterest expense was $131.4 million for the three months ended June 30, 2026, an increase of $4.6 million, or 3.6%, compared to $126.8 million for the prior year quarter. The increase was primarily due to increases in salaries and employee benefits and net occupancy and equipment, partially offset by a reduction in other expenses. For the six months ended June 30, 2026, total noninterest expense was $258.0 million, an increase of $8.9 million, or 3.6% compared to the same period in 2025. In addition to the categories noted above, the six month period increase was also driven by an increase in legal and professional fees, and bankcard processing, rewards, and related costs.
Previous wording
Salaries and Employee Benefits. These expenses were $76.0 million for the first three months of 2026, an increase of $4.8 million, or 6.7%, compared to $71.2 million for the same period in 2025. This increase was primarily the result of higher performance based compensation and regular merit increases. Full-time equivalents were flat to the prior year quarter.
Current wording
Salaries and Employee Benefits. Salaries and employee benefits increased $5.3 million, or 7.1%, to $80.0 million when comparing the second quarter of 2026 to the prior year quarter. These expenses were $156.1 million for the first six months of 2026, an increase of $10.1 million, or 6.9%, compared to $146.0 millionfor the same period in 2025. For both the three and six month ended reporting periods, this increase was primarily the result of merit and other salary increases and higher compensation costs associated with elevated performance levels, while staffing levels remained generally consistent with the prior periods.
Previous wording
Legal and Professional Fees. Legal and professional fees were $6.1 million for the first three months of 2026, an increase of $1.2 million, or 24.3%, compared to $4.9 million for the same period in 2025, primarily reflecting higher costs related to technology improvement initiatives and additional costs associated with being a public company.
Current wording
Legal and Professional Fees. Legal and professional fees were$11.6 million for the first six months of 2026, an increase of$1.3 million, or 12.3%, compared to$10.4 million for the same period in 2025, primarily reflecting higher costs related to technology improvement initiatives and additional costs associated with being a public company, such as auditing and insurance costs.
Previous wording
Bankcard Processing, Rewards and Related Costs. Bankcard processing, rewards and related costs increased $0.7 million, or 10.4% for the first three months of 2026, compared to the same period in 2025, primarily reflecting $0.4 million in conversion-related refunds received in the first quarter of 2025 that did not recur in 2026.
Current wording
Bankcard Processing, Rewards and Related Costs. Bankcard processing, rewards and related costs increased$0.9 million, or 6.0% for the first six months of 2026, compared to the same period in 2025, primarily reflecting $0.4 million in credit card rebates received in the first quarter of 2025 that did not recur in 2026, as well as an increase in card transaction volume.
Previous wording
Other Expenses. Other expenses decreased $2.2 million, to $14.1 million for the first three months of 2026, compared to the same period in 2025. Thedecrease was primarily due to $3.1 million higher residual loss expense in 2025 on the leased car portfolio as a resultof declining fair market values. This was partially offset by increases in various other expense categories.
Current wording
Other Expenses. For the three months ended June 30, 2026, other expenses decreased $1.8 million to $14.3 million, compared to the same period in 2025. Other expenses decreased $4.0 million, to $28.4 million for the first six months of 2026, compared to the same period in 2025. Thedecrease was primarily due to$1.9 million higher residual loss expense in thesecond quarter of 2025, and a$4.9 million higher residual loss for the first six months of 2025, on the consumer lease portfolio as a resultof declining fair market values. The reduction in expenses coincided with the sale of this portfolio. This was partially offset by increases in various other expense categories.
Previous wording
The provision for income taxes varies due to the amount of taxable income, the investments in tax-advantaged securities and loans, tax credits and the rates charged by federal and state authorities in which we do business. Income tax expense was $32.9 million for the three months ended March 31, 2026, representing an effective tax rate of 22.8%, compared to $28.1 million and an effective tax rate of 22.9%, for the same period in 2025. The increase in income tax expense of $4.8 million, or 17.0%, was driven by higher pre-tax income year over year.
Current wording
The provision for income taxes varies due to the amount of taxable income, the investments in tax-advantaged securities and loans, tax credits and the rates charged by federal and state authorities where we do business. Income tax expense was $33.7 million for the three months ended June 30, 2026, representing an effective tax rate of 22.8%, compared to $27.0 million and an effective tax rate of 22.8%, for the same period in 2025. For the first six months of 2026, income tax expense was $66.5 million, compared to $55.1 million for the same period in 2025. Both periods had an effective tax rate of 22.8%. The increase in income tax expense was driven by higher pre-tax income year over year.
Previous wording
The Company has strategically aligned its operations into the following three reportable segments: Consumer Banking, Commercial Banking and Wealth Management (collectively, the “Business Segments”). The Chief Executive Officer regularly evaluates Business Segment financial results produced by the Company’s internal reporting system in deciding how to allocate resources and assess performance for individual Business Segments. The management accounting system assigns balance sheet and income statement items to each Business Segment using methodologies that are refined on an ongoing basis. See "Note 12, Business Segment Reporting," to our consolidated financial statements in this Quarterly Report on Form 10-Q.
Current wording
The Company has aligned its operations into the following three reportable segments: Consumer Banking, Commercial Banking and Wealth Management (collectively, the “Business Segments”). The Chief Executive Officer regularly evaluates Business Segment financial results produced by the Company’s internal reporting system in deciding how to allocate resources and assess performance for individual Business Segments. The management accounting system assigns balance sheet and income statement items to each Business Segment using methodologies that are refined on an ongoing basis. See "Note 12, Business Segment Reporting," to our consolidated financial statements in this Quarterly Report on Form 10-Q.
Previous wording
For the three months ended March 31, 2026, Commercial Banking net income increased $5.3 million, or 9.0%, to $63.9 million compared to the same period in 2025. The increase was primarily due to increased net interest income of 6.4% driven by an increase in the FTP paid on deposits.
Current wording
For the three months ended June 30, 2026, Commercial Banking net income increased $2.5 million, or 4.2%, to $63.6 million compared to the same period in 2025. The increase was primarily due to increased net interest income of 4.8% driven by an increase in the FTP paid on deposits.
Previous wording
For the three months ended March 31, 2026, Wealth Management net income increased $1.5 million, or 33.8%, to $6.0 million compared to the same period in 2025, as assets under advice increased $2.5 billion. The 18.2% rise in total AUA was driven by continued strong net new AUA, partially offset by a reduction from market movement.
Current wording
For the three months ended June 30, 2026, Wealth Management net income increased $1.7 million, or 40.0%, to $6.1 million compared to the same period in 2025, as assets under advice increased. The 21.3% rise in total AUA was driven by continued strong net new AUA, which grew $3.0 billion from June 2025, to $17.3 billion at June 30, 2026.
Previous wording
•Total loans held for investment as of March 31, 2026 totaled $11.5 billion, an increase of $98 million, or 0.9%, compared to $11.4 billion as of December 31, 2025. The increase was primarily due to increases in commercial real estate, and residential mortgage loans, partially offset by a decline in other consumer loans.
Current wording
•Total loans held for investment as of June 30, 2026 totaled $11.7 billion, an increase of $239 million, or 2.1%, compared to $11.4 billion as of December 31, 2025. The increase was primarily due to increases in commercial real estate and residential mortgage loans, partially offset by a decline in other consumer loans.
Previous wording
To manage and enforce our portfolio metrics and diversification targets our credit committee meets periodically to evaluate credit risk migration, new business activities, stress-test activities and credit policy changes and approve or modify market lending authorities. Our internal loan review department, our third line of defense, serves as an independent function to evaluate effective underwriting and application of credit policy in both origination and portfolio management.
Current wording
To manage and enforce our portfolio metrics and diversification targets our credit management committee meets periodically to evaluate credit risk migration, new business activities, stress-test results and evaluate credit policy changes and approve or modify market lending authorities. Our internal loan review department, our third line of defense, serves as an independent function to evaluate effective underwriting and application of credit policy in both origination and portfolio management.
Previous wording
Credit quality across the loan portfolio remains strong, supported by consistent adherence to conservative underwriting standards. Portfolio‑level metrics across all loan classes continue to align with these established standards, underscoring the stability and resilience of the credit profile. Total loans held for investment increased $98 million, or 0.9%, to $12 billion as of March 31, 2026. The increase was primarily due to an increase in commercial real estate and residential real estate, partially offset by a decline in the consumer loan portfolio.
Current wording
Credit quality across the loan portfolio remains strong, reflecting our commitment to conservative underwriting standards. Portfolio‑level metrics across all loan classes continue to align with these established standards, underscoring the stability and resilience of the credit profile. Total loans held for investment increased $239 million, or 2.1%, to $11.7 billion as of June 30, 2026. The increase was primarily due to an increase in commercial real estate and residential real estate, partially offset by a decline in the consumer loan portfolio.
Previous wording
Our non-performing assets consist of nonperforming loans and foreclosed real estate, if any. Our nonperforming loans consist of loans past due 90 days or more and still accruing and nonaccrual loans. We consider loans past due on the day following the contractual repayment date if the contractual repayment was not received by us as of the end of the business day. Loans for which the accrual of interest has been discontinued are designated as nonaccrual loans. The accrual of interest on loans is discontinued when, in management’s judgment, the interest is uncollectible in the normal course of business. Loans are placed on nonaccrual status when (i) deterioration in the financial condition of the borrower exists such that payment of full principal and interest is not expected, or (ii) principal or interest has been in default for a period of 90 days or more and the asset is not both well secured and in the process of collection. When a loan is placed on nonaccrual status, any interest previously accrued but not collected is reversed against current income, and the loan is charged off to the extent uncollectible. Principal and interest payments received on nonaccrual loans are generally applied to principal. Interest is included in income only after all previous loan charge-offs have been recovered and is recorded only as received. The loan is returned to accrual status only when the borrower has brought all past-due principal and interest payments current and, in the opinion of management, has demonstrated the ability to make future payments of principal and interest as scheduled.
Current wording
Our non-performing assets consist of nonperforming loans and foreclosed real estate, if any. Our nonperforming loans consist of loans past due 90 days or more and still accruing and nonaccrual loans. We consider loans past due on the day following the contractual repayment date if the contractual repayment was not received by us as of the end of the business day. Loans for which the accrual of interest has been discontinued are designated as nonaccrual loans. The accrual of interest on loans is discontinued when, in management’s judgment, the interest is uncollectible in the normal course of business. Loans are placed on nonaccrual status when (i) deterioration in the financial condition of the borrower exists such that collection of full principal and interest is not expected, or (ii) principal or interest is 90 days or more past due, unless the loan is both well secured and in the process of collection. When a loan is placed on nonaccrual status, any interest previously accrued but not collected is reversed against current income, and the loan is charged off to the extent uncollectible. Principal and interest payments received on nonaccrual loans are generally applied to principal. Interest is included in income only after all previous loan charge-offs have been recovered and is recorded only as received. The loan is returned to accrual status only when the borrower has brought all past-due principal and interest payments current and, in the opinion of management, has demonstrated the ability to make future payments of principal and interest as scheduled.
Previous wording
Allowance for credit losses reflects management’s estimate of current expected loss within the loan and lease portfolio. The computation of the allowance for credit losses includes elements of judgment and high levels of subjectivity. See “Part II, Item 7. Management's Discussion and Analysis of Fina ncial Condition and Results of Operations—Critical Accounting Policies and Estimates—Allowance for Credit Losses on Loans,”, inthis Quarterly Report on Form 10-Q
Current wording
The allowance for credit losses represents management's estimate of expected credit losses within the loan and lease portfolio. Determining the allowance requires elements of judgment and involves consideration of historical loss experience, current economic conditions, and reasonable and supportable forecasts. For additional information regarding the allowance methodology, see "Critical Accounting Policies and Estimates—Allowance for Credit Losses on Loans" in this Quarterly Report on Form 10-Q.
Previous wording
The following tables present theallocation of the allowance for credit losses:
Current wording
The following tables present theallocation of the allowance for credit losses by loan category:
Previous wording
As of March 31, 2026, the amortized cost of our AFS and HTM investment portfolios totaled $6.8 billion, an increase of $419.1 million, or 6.5% versus December 31, 2025. As of the same date, the fair value of our AFS and HTM investment portfolios totaled $6.7 billion, an increase of $368.9 million, or 5.8% versus December 31, 2025.
Current wording
As of June 30, 2026, the amortized cost of our AFS and HTM investment portfolios totaled $7.1 billion, an increase of $710 million, or 11.1% versus December 31, 2025. The combined fair value of these portfolios totaled $7.0 billion as of June 30, 2026, an increase of $644 million, or 10.1%, from December 31, 2025.
Previous wording
The average tax-equivalent yield at March 31, 2026 was 4.02%, a decreaseof 0.02 percentage points compared to December 31, 2025. Gross unrealized gains in our investment securities portfolio were $24.1 million and $57.2 million as of March 31, 2026 and December 31, 2025, respectively. Gross unrealized losses in our investment securities portfolio were $121.6 million and $104.6 million as of March 31, 2026 and December 31, 2025, respectively. The change in unrealized gains and losses in our investment securities portfolio was due primarily to higher market interest rates during the first three months of 2026, which adversely impacted the fair value of longer duration securities.
Current wording
The portfolio's average tax-equivalent yield was 4.13% at June 30, 2026, an increase of 9 bps compared to December 31, 2025. Gross unrealized gains totaled $12.4 million and $57.2 million at June 30, 2026 and December 31, 2025, respectively, while gross unrealized losses totaled $125.6 million and $104.6 million, respectively. The decline in net unrealized valuation was driven primarily to higher market interest rates during the first six months of 2026, which negatively affected the fair value of longer duration securities.
Previous wording
As of March 31, 2026, approximately 99.0% of our investment portfolio consisted of securities guaranteed by the U.S. government, its agencies, or sponsored enterprises and available-for-sale securities represented 99.3% of our total portfolio. As of the same date, the portfolio’s composition was 37% agency residential mortgage-backed securities (“RMBS”), 42% agency commercial mortgage-backed securities (“CMBS”), and 16% Treasuries, with the balance in the Small Business Administration (“SBA”), municipal, corporate and other securities.
Current wording
As of June 30, 2026, the portfolio’s composition was 37% agency residential mortgage-backed securities (“RMBS”), 42% agency commercial mortgage-backed securities (“CMBS”), and 17% Treasuries, with the balance in the Small Business Administration (“SBA”), municipal, corporate and other securities.
Previous wording
As of March 31, 2026, our best estimate of the duration of our $2.5 billion residential mortgage-backed securities portfolio held in available-for-sale was 3.3 years. As of March 31, 2026, management estimates the effective duration extends by 0.7 years assuming an immediate 200 basis point upward shock and contracts by 0.8 years assuming an immediate 200 basis point downward shock. As of the same date, our best estimate of the duration of the total investment portfolio excluding equity securities was 2.7 years. Management estimates the effective duration extends by 0.2 years assuming an immediate 200 basis point upward shock and contracts by 0.3 years assuming an immediate 200 basis point downward shock.
Current wording
As of June 30, 2026, our best estimate of the duration of our $2.6 billion residential mortgage-backed securities portfolio held in available-for-sale was 3.3 years. As of June 30, 2026, management estimates the effective duration extends by 0.7 years assuming an immediate 200 basis point upward shock and contracts by 0.9 years assuming an immediate 200 basis point downward shock. As of the same date, our best estimate of the duration of the total investment portfolio excluding equity securities was 2.7 years. Management estimates the effective duration extends by 0.3 years assuming an immediate 200 basis point upward shock and contracts by 0.3 years assuming an immediate 200 basis point downward shock.
Previous wording
The values in the table above are hypothetical and do not reflect potential management actions that could mitigate the effects of interest rate changes, including changes in pricing, balance sheet mix, or funding strategies. Actual results may differ due to variations in the timing and magnitude of interest rate movements, non-parallel yield curve changes, deposit behavior, loan prepayment speeds, or changes in asset and liability composition or growth. The simulations assume no balance sheet growth or additional rate changes beyond the initial shock and are intended to indicate sensitivity to interest rate changes rather than predict actual results. For further discussion of the Company’s interest rate risk, see the Interest Rate Risk section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the Company’s 2025 Annual Report on Form 10-K.
Current wording
The values in the table above are hypothetical and do not reflect potential management actions that could mitigate the effects of interest rate changes, including changes in pricing, balance sheet mix, or funding strategies. Actual results may differ due to variations in the timing and magnitude of interest rate movements, non-parallel yield curve changes, deposit behavior, loan prepayment speeds, or changes in asset and liability composition or growth. The simulations assume no balance sheet growth or additional rate changes beyond the initial shock and are intended to indicate sensitivity to interest rate changes rather than predict actual results. For further discussion of our interest rate risk, see the "Part II, Item 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations - Market Risk - Interest Rate Risk" included in our 2025 Annual Report on Form 10-K.
Previous wording
The Company’s ALCO has been authorized by the Board to oversee our liquidity risk to confirm that our activities comply with our funds management policy, which specifies overall objectives, metrics, limits, guidelines, reporting requirements and our contingency funding plan, which includes requirements for liquidity stress testing. The ALCO receives regular comprehensive reporting that includes information describing current levels vs. guidelines and limits for a broad set of liquidity metrics, loan and deposit trends, readily available liquidity measures, explanatory commentary relating to changes in our liquidity position and emerging risk trends and, as appropriate, recommended remedial strategies.
Current wording
Our ALCO, which has been authorized by the Board, oversees our liquidity risk to confirm that our activities comply with our funds management policy, which specifies overall objectives, metrics, limits, guidelines, reporting requirements and our contingency funding plan, which includes requirements for liquidity stress testing. The ALCO receives regular comprehensive reporting that includes information describing current levels vs. guidelines and limits for a broad set of liquidity metrics, loan and deposit trends, readily available liquidity measures, explanatory commentary relating to changes in our liquidity position and emerging risk trends and, as appropriate, recommended remedial strategies.
Previous wording
As of March 31, 2026, we had approximately $7.0 billion in readily available liquidity compared to $6.7 billion as of December 31, 2025.
Current wording
As of June 30, 2026, we had approximately $6.8 billion in readily available liquidity compared to $6.7 billion as of December 31, 2025.
Previous wording
Deposits are our primary source of liquidity, as well as provides the biggest source of liquidity needs. Deposits are gathered primarily from our full-service branch locations, as well as online, mobile and ATM deposits. Central Bank offers a variety of deposit products including noninterest-bearing demand deposits, interest-bearing demand deposits, savings accounts, and certificates of deposit. The bank also utilizes the IntraFi network which allows our depositors to receive FDIC insurance on amounts greater than $250,000. Deposits larger than this threshold are broken into smaller amounts and placed in the network of other IntraFi institutions to ensure FDIC insurance covers the entire deposit.
Current wording
Deposits are our primary source of funding and also represent our most significant source of liquidity needs. Deposits are gathered primarily through our full-service branch locations, as well as through online, mobile and ATM channels. Central Bank offers a variety of deposit products including noninterest-bearing demand deposits, interest-bearing demand deposits, savings accounts, and certificates of deposit.
Previous wording
The following tables sets forth the distribution of deposit balances as of March 31, 2026 and December 31, 2025:
Current wording
The following table sets forth the distribution of deposit balances as of June 30, 2026 and December 31, 2025:
Previous wording
Federal funds purchased and customer repurchase agreements totaled $1.1 billion and $1.0 billion at March 31, 2026 and December 31, 2025, respectively, which included customer repurchase agreements of $944.5 million and $945.8 million at March 31, 2026 and December 31, 2025, respectively. These are short-term borrowings that generally have a one-day maturity. The $1.3 million, or 0.1%, decrease in the first three months of 2026 was due to the normal course of business. Federal funds purchased increased $56.4 million, or 85.4%, in the first three months of 2026.
Current wording
Federal funds purchased and customer repurchase agreements totaled $0.9 billion and $1.0 billion at June 30, 2026 and December 31, 2025, respectively, which included customer repurchase agreements of $834 million and $946 million at June 30, 2026 and December 31, 2025, respectively. These are short-term borrowings that generally have a one-day maturity. Federal funds purchased increased $13 million, or 19.3%, in the first six months of 2026.
Previous wording
The Bank may not declare dividends in any calendar year in an amount that would exceed its accumulated retained earnings after giving effect to any unrecognized losses and bad debts without the prior approval of the banking regulators. In addition, dividends paid by the Bank to the Company would be prohibited if they would cause the Bank’s capital to be reduced below applicable minimum capital requirements. During the three months ended March 31, 2026, the Bank paid $100 million in dividends to the Company. As of March 31, 2026, the Bank had approximately $59 million of retained earnings that could be upstreamed to the Company through dividends without prior approval from the Federal Reserve. These earnings remain at the Bank level and are included in regulatory capital.
Current wording
The Bank may not declare dividends in any calendar year in an amount that would exceed its accumulated retained earnings after giving effect to any unrecognized losses and bad debts without the prior approval of the banking regulators. In addition, dividends paid by the Bank to the Company would be prohibited if they would cause the Bank’s capital to be reduced below applicable minimum capital requirements. During the six months ended June 30, 2026, the Bank paid $200 million in dividends to the Company. As of June 30, 2026, the Bank had approximately$58 million of retained earnings that could be upstreamed to the Company through dividends without prior approval from the Federal Reserve.
Previous wording
The liquidity needs of the Company on an unconsolidated basis consist primarily of operating expenses, taxes, and dividends to stockholders. The Company’s liquidity totaled $2.0 billion as of March 31, 2026, consisting primarily of a $1.0 billion loan to the Bank and $941 million in cash and cash equivalents. The Company’s liquidity totaled $1.9 billion as of December 31, 2025, consisting of a $1.0 billion loan to the Bank, and $897 million in cash and cash equivalents.
Current wording
The liquidity needs of the Company on an unconsolidated basis consist primarily of operating expenses, taxes, and dividends to stockholders. The Company’s liquidity totaled $2.0 billion as of June 30, 2026, consisting primarily of a $1.0 billion loan to the Bank and $1.0 billion in cash and cash equivalents. The Company’s liquidity totaled $1.9 billion as of December 31, 2025, consisting of a $1.0 billion loan to the Bank, and $897 million in cash and cash equivalents.
Previous wording
The Company’s operating expenses totaled$3.1 million for the three months ended March 31, 2026. Dividends paid to stockholders totaled$28.9 million and the Company repurchased $31.6 million of common stock during the first three months of 2026.
Current wording
The Company’s operating expenses totaled$6.6 million for the six months ended June 30, 2026. Dividends paid to stockholders totaled$57.7 million and the Company repurchased $39.2 million of common stock, including shares acquired to satisfy tax withholding obligations associated with equity compensation plans, during the first six months of 2026.
Previous wording
As of March 31, 2026, we had no material contractual commitments for capital expenditures. However, the Company is currently progressing through its Core Modernization initiative, which is expected to result in capital expenditures as project phases are executed. These expenditures are expected to be funded through operating cash flows, and the Company does not expect the initiative to have a material adverse impact on its liquidity or capital position.
Current wording
As of June 30, 2026, we had no material contractual commitments for capital expenditures. However, we are currently progressing through our Core Modernization initiative, which is expected to result in capital expenditures as project phases are executed. To date, we have capitalized $12 million related to this initiative. These expenditures are funded through operating cash flows, and we do not expect the initiative to have a material adverse impact on our liquidity or capital position.
Previous wording
The estimates and judgments that management believes have the most effect on the Company’s reported financial position and results of operations are set forth in “Note 1 – Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements, included in our Annual Report on Form 10-K for the year ended December 31, 2025. There have been no significant changes to the Company's critical accounting policies as disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2025.
Current wording
The estimates and judgments that management believes have the most effect on our reported financial position and results of operations are set forth in “Note 1 – Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements, included in our Annual Report on Form 10-K for the year ended December 31, 2025. There have been no significant changes to our critical accounting policies as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025.
Previous wording
The allowance for credit losses on loans is a valuation amount that is deducted from the amortized cost basis of loans not held at fair value to present the net amount expected to be collected over the contractual term of the loans. The allowance for credit losses on loans is measured using relevant information about past events, including historical credit loss experience on loans with similar risk characteristics, current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flow over the contractual term of the loans. An allowance will be created upon origination or acquisition of a loan and is updated at subsequent reporting dates. The methodology is applied consistently for each reporting period and reflects management’s current expectations of credit losses. Changes to the allowance for credit losses on loans resulting from periodic evaluations are recorded through increases or decreases to the credit loss expense for loans, which is recorded in provision for credit losses on the consolidated statements of income. Loans that are deemed to be uncollectible are charged off against the related allowance for credit losses on loans. The Company maintains a policy to reverse accrued and unpaid interest when a loan is placed on non-accrual. Therefore, an allowance is not recorded for accrued interest.
Current wording
The allowance for credit losses on loans is a valuation amount that is deducted from the amortized cost basis of loans not held at fair value to present the net amount expected to be collected over the contractual term of the loans. The allowance for credit losses on loans is measured using relevant information about past events, including historical credit loss experience on loans with similar risk characteristics, current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flow over the contractual term of the loans. An allowance will be created upon origination or acquisition of a loan and is updated at subsequent reporting dates. The methodology is applied consistently for each reporting period and reflects management’s current expectations of credit losses. Changes to the allowance for credit losses on loans resulting from periodic evaluations are recorded through increases or decreases to the credit loss expense for loans, which is recorded in provision for credit losses on the consolidated statements of income. Loans that are deemed to be uncollectible are charged off against the related allowance for credit losses on loans. We maintain a policy to reverse accrued and unpaid interest when a loan is placed on non-accrual. Therefore, an allowance is not recorded for accrued interest.
Previous wording
The allowance for credit losses on loans is measured on a collective (pool) basis. Loans are aggregated into pools based on similar risk characteristics including borrower type, collateral type, and expected credit loss patterns. The Company maintains a policy to reverse accrued and unpaid interest when a loan is placed on non-accrual. Therefore, an allowance is not recorded for accrued interest. The allowance for credit losses includes significant assumptions that are uncertain and reasonably likely to have a material impact, the most significant of which are loan loss rates and prepayment speeds. Assumptions are updated based on actual performance on an annual basis. We utilize a consensus macroeconomic forecast which relies on underlying statistical models to incorporate the economic impact into each loan portfolio. Management performs a qualitative analysis considering necessary adjustments based on the potential risks inherent in the macroeconomic forecast and impacts from loan portfolio changes, including concentrations, staffing, asset quality, and policy changes. Model validations are performed to provide an independent assessment of the framework and the model’s use in producing reasonable and supportable estimates. See Note 3, “Loans and Allowance for Credit Losses” to our consolidated financial statements contained elsewhere in this Quarterly Report.
Current wording
The allowance for credit losses on loans is measured on a collective (pool) basis. Loans are aggregated into pools based on similar risk characteristics including borrower type, collateral type, and expected credit loss patterns. We maintain a policy to reverse accrued and unpaid interest when a loan is placed on non-accrual. Therefore, an allowance is not recorded for accrued interest. The allowance for credit losses includes significant assumptions that are uncertain and reasonably likely to have a material impact, the most significant of which are loan loss rates and prepayment speeds. Assumptions are updated based on actual performance on an annual basis. We utilize a consensus macroeconomic forecast which relies on underlying statistical models to incorporate the economic impact into each loan portfolio. Management performs a qualitative analysis considering necessary adjustments based on the potential risks inherent in the macroeconomic forecast and impacts from loan portfolio changes, including concentrations, staffing, asset quality, and policy changes. Model validations are performed to provide an independent assessment of the framework and the model’s use in producing reasonable and supportable estimates. See Note 3, “Loans and Allowance for Credit Losses” to our consolidated financial statements contained elsewhere in this Quarterly Report.
Showing the first 40 of 42 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Key highlights for the six months ended June 30, 2026:
Current report — wording carried from elsewhere
For the six months ended June 30, 2026, Commercial Banking net income increased $7.8 million, or 6.5%, to $127.6 million compared to the same period in 2025. The increase was primarily due to increased net interest income of 5.6% driven by an increase in the FTP paid on deposits.