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Item 2. Management’s Discussion and Analysis

2026-05-06 compared with 2025-11-06 · 178 added, 304 removed, 542 unchanged (47% of the section changed)

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As permitted by SEC rules, management presents a sequential quarterly analysis of the Company’s performance as we believe that comparing current quarter results to those of the immediately preceding fiscal quarter is more useful in identifying current business trends and provides a more relevant analysis of our business results.

Accordingly, we have compared our results of operations for the three months ended September 30, 2025 to our results of operations for the three months ended June 30, 2025, as applicable, throughout this Management's Discussion and Analysis of Financial Condition and Results of Operations.

For additional information regarding the Company’s results for the three months ended June 30, 2025, please refer to our second quarter Form 10-Q filed with the SEC on August 5, 2025.

The third quarter of 2025 was transformative for our Company.

We successfully raised $326.9 million of equity capital to reposition our balance sheet.

We effectively addressed a negative arbitrage between long-term bond yields and shorter-term funding costs which freed up capital for future growth.

We reclassified approximately $3.6 billion in held-to-maturity (“HTM”) securities to available-for-sale (“AFS”) securities and sold approximately $3.2 billion in amortized cost basis of AFS securities (including certain of those previously classified as HTM).

The sale of investment securities resulted in a realized, after-tax loss of $625.6 million (based on actual tax rate of 21.946%).

Proceeds from the sale of the investment securities were primarily used to deleverage the balance sheet through the pay-down of higher rate, non-relationship wholesale and public fund deposits, as well as higher rate other borrowings primarily consisting of FHLB advances.

While the one-time loss on the sale of the bonds was significant, the financial strength of our company coupled with the positive sentiment from investors allowed us that opportunity.

We followed the balance sheet repositioning by issuing $325.0 million in aggregate principal amount of 6.25% Fixed-to-Floating Rate Subordinated Notes (“2025 Notes”), which qualify as Tier 2 regulatory capital of the Company.

The proceeds of this issuance were used to redeem $330.0 million of our 5.00% Fixed-to-Floating Rate Subordinated Notes (“2018 Notes”), which qualified as Tier 2 regulatory capital but were subject to amortizing regulatory capital treatment as they approached maturity, effective October 1, 2025.

While we continue to operate against a backdrop of uncertainty concerning the macroeconomic environment and the timing of future interest rate moves, we continue our focus on organic growth in our current footprint and are encouraged by our positive momentum through the nine months ended September 30, 2025:

• Total deposits as of September 30, 2025 were $19.84 billion, compared to $21.89 billion as of December 31, 2024.

Uninsured, non-collateralized deposits as of September 30, 2025 were approximately $4.46 billion, or 22% of total deposits.

• Capital levels remained strong over the period following the balance sheet repositioning, with all regulatory capital ratios remaining significantly above “well-capitalized” guidelines as of September 30, 2025 (see Table 13 in the Risk-Based Capital section below).

As of September 30, 2025, our ratio of common equity to total assets was 13.85%, the ratio of tangible common equity to tangible assets was 8.53% and our Tier 1 leverage ratio was 9.56%.

• The loan to deposit ratio was 87% and 78% as of September 30, 2025 and December 31, 2024, respectively.

Additional liquidity sources available to us as of September 30, 2025 totaled $9.53 billion and our uninsured, non-collateralized deposit coverage ratio was 2.1x.

Our net loss for the three months ended September 30, 2025 was $562.8 million, or $(4.00) diluted earnings per share, compared to net income of $54.8 million, or $0.43 diluted earnings per share, for the three months ended June 30, 2025.

Included in the results were certain items related to our branch right sizing initiative, early retirement program costs, loss on extinguishment of debt (for the three months ended September 30, 2025) and loss on sale of securities (for the three months ended September 30, 2025).

Excluding these certain items and the tax effect, adjusted earnings for the three months ended September 30, 2025 were $64.9 million, or $0.46 adjusted diluted earnings per share, compared to $56.1 million, or $0.44 adjusted diluted earnings per share, for the three months ended June 30, 2025.

Our net loss for the nine months ended September 30, 2025 was $475.6 million, or $(3.63) diluted earnings per share, compared to net income of $104.4 million, or $0.83 diluted earnings per share, for the nine months ended September 30, 2024.

Included in the results were certain items related to our branch right sizing initiative, early retirement program costs, loss on sale of securities, a FDIC special assessment (for the nine months ended September 30, 2024), termination of vendor and software services (for the nine months ended September 30, 2024) and loss on extinguishment of debt (for the nine months ended September 30, 2025).

Excluding these certain items and the tax effect, adjusted earnings for the nine months ended September 30, 2025 were $154.1 million, or $1.18 adjusted diluted earnings per share, compared to $128.3 million, or $1.02 adjusted diluted earnings per share, for the nine months ended September 30, 2024.

During the year, we increased the loss provision on two specific credit relationships that we have been watching for some time due to unfavorable events that occurred for both during the nine months ended September 30, 2025.

Otherwise, we believe the asset quality in our portfolio remains sound and reflects our conservative credit culture, as well as our focus on maintaining disciplined pricing and conservative underwriting standards given the current economic environment.

Total nonperforming loans as of September 30, 2025, December 31, 2024, and September 30, 2024 were $153.9 million, $110.8 million, and $101.7 million, respectively.

Nonperforming assets as a percent of total assets were 0.66% at September 30, 2025, compared to 0.45% at December 31, 2024 and 0.38% at September 30, 2024.

As of September 30, 2025, stockholders’ equity was $3.35 billion, book value per share was $23.18 and tangible book value per share was $13.45.

Total loans were $17.19 billion at September 30, 2025, compared to $17.01 billion at December 31, 2024.

Our unfunded commitments were $3.95 billion and $3.74 billion as of September 30, 2025 and December 31, 2024, respectively.

Our commercial loan pipeline totaled $1.61 billion as of September 30, 2025, compared to $1.26 billion at December 31, 2024.

Accordingly, we have compared our results of operations for the three months ended March 31, 2026 to our results of operations for the three months ended December 31, 2025 and March 31, 2025, as applicable, throughout this Management's Discussion and Analysis of Financial Condition and Results of Operations.

Our net income for the three months ended March 31, 2026 was $68.5 million, or $0.47 diluted earnings per share, compared to net income of $78.1 million, or $0.54 diluted earnings per share, and $32.4 million, or $0.26 diluted earnings per share, for the three months ended December 31, 2025 and March 31, 2025, respectively.

Included in the results were certain items related to our branch right sizing initiative, early retirement program costs (for the three months ended March 31, 2026), professional services (for the three months ended March 31, 2026), a FDIC special assessment (for the three months ended March 31, 2026), termination of vendor and software services (for the three months ended December 31, 2025) and loss on sale of an equipment finance business (for the three months ended December 31, 2025).

Excluding these certain items and the tax effect, adjusted earnings for the three months ended March 31, 2026 were $68.6 million, or $0.47 adjusted diluted earnings per share, compared to $79.0 million, or $0.54 adjusted diluted earnings per share, and $33.1 million, or $0.26 adjusted diluted earnings per share, for the three months ended December 31, 2025 and March 31, 2025, respectively.

We believe the asset quality in our portfolio remains sound and reflects our conservative credit culture, as well as our focus on maintaining disciplined pricing and conservative underwriting standards given the current economic environment.

Total nonperforming loans as of March 31, 2026, December 31, 2025, and March 31, 2025 were $141.9 million, $112.7 million, and $152.4 million, respectively.

Nonperforming assets as a percent of total assets were 0.63% at March 31, 2026, compared to 0.51% at December 31, 2025 and 0.61% at March 31, 2025.

As of March 31, 2026, stockholders’ equity was $3.44 billion, book value per share was $23.70 and tangible book value per share was $14.03.

Total loans were $17.93 billion at March 31, 2026, compared to $17.49 billion at December 31, 2025.

Our unfunded commitments were $4.07 billion and $3.87 billion as of March 31, 2026 and December 31, 2025, respectively.

Our commercial loan pipeline totaled $1.56 billion as of March 31, 2026, compared to $1.54 billion at December 31, 2025.

In our discussion and analysis of our financial condition and results of operation in this Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” we provide certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States (“US GAAP”).

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See the GAAP Reconciliation of Non-GAAP Financial Measures section below for additional discussion and reconciliations of non-GAAP measures.

Simmons First National Corporation is a Mid-South based financial holding company that, as of September 30, 2025, has approximately $24.2 billion in consolidated assets and, through its subsidiaries, conducts financial operations in Arkansas, Kansas, Missouri, Oklahoma, Tennessee and Texas.

Simmons First National Corporation is a Mid-South based financial holding company that, as of March 31, 2026, has approximately $24.7 billion in consolidated assets and, through its subsidiaries, conducts financial operations in Arkansas, Kansas, Missouri, Oklahoma, Tennessee and Texas.

CRITICAL ACCOUNTING ESTIMATES

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We consider accounting estimates to be critical to reported financial results if (i) the accounting estimate requires management to make assumptions about matters that are highly uncertain and (ii) different estimates that management reasonably could have used for the accounting estimate in the current period, or changes in the accounting estimate that are reasonably likely to occur from period to period, could have a material impact on our financial statements.

The accounting policies that we view as critical to us are those relating to estimates and judgments regarding (a) the determination of the adequacy of the allowance for credit losses, (b) acquisition accounting and valuation of loans, (c) the valuation of goodwill and the useful lives applied to intangible assets, (d) the valuation of stock-based compensation plans and (e) income taxes.

Allowance for Credit Losses

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Results are compared to book value;

no impairment was indicated as of September 30, 2025.

no impairment was indicated as of March 31, 2026.

Judgment is inherent in assessing goodwill for impairment.

The various assumptions used in assessing goodwill for impairment involve uncertainties that are beyond our control and could cause actual results to differ materially from those projected.

Stock-Based Compensation Plans

We have adopted various stock-based compensation plans.

The plans provide for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock awards, restricted stock units, performance stock units and stock awards.

Pursuant to the plans, shares are reserved for future issuance by the Company upon exercise of stock options or awarding of restricted stock, restricted stock units or performance stock units granted to directors, officers and other key employees.

In accordance with ASC Topic 718, Compensation – Stock Compensation , the fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model that uses various assumptions.

This model requires the input of highly subjective assumptions, changes to which can materially affect the fair value estimate.

For additional information, see Note 14, Stock-Based Compensation, in the accompanying Condensed Notes to Consolidated Financial Statements included elsewhere in this report.

We are subject to the federal income tax laws of the United States, and the tax laws of the states and other jurisdictions where we conduct business.

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In the last several years, on average, approximately 48% of our loan portfolio and approximately 94% of our time deposits have repriced in one year or less.

As of September 30, 2025, our interest rate sensitivity shows that approximately 55% of our loans and 96% of our time deposits will reprice in the next year.

As of March 31, 2026, our interest rate sensitivity shows that approximately 63% of our loans and 96% of our time deposits will reprice in the next year.

Net Interest Income - Sequential Quarter Analysis

For the three month period ended September 30, 2025, net interest income on a fully taxable equivalent basis was $190.5 million, an increase of $12.2 million, or 6.9%, compared to the three months ended June 30, 2025.

The increase in net interest income was the result of a $4.2 million decrease in fully tax equivalent interest income, more than offset by a $16.4 million decrease in interest expense.

Several factors contributed to the decrease in net interest income on a fully taxable equivalent basis over the comparative period.

During the third quarter of 2025, we completed a balance sheet repositioning that included the transfer of approximately $3.6 billion investment securities classified as HTM to the AFS investment securities portfolio, with a subsequent sale of approximately $3.2 billion in amortized cost basis of low-yielding AFS securities (including certain of those previously classified as HTM).

For both three month periods ended March 31, 2026 and December 31, 2025, net interest income on a fully taxable equivalent basis totaled $200.2 million.

While net interest income was flat over the comparative periods, fully taxable equivalent interest income and interest expense each decreased by $5.6 million during the three months ended March 31, 2026.

The decrease in interest income on a fully taxable equivalent basis primarily resulted from a $3.5 million decrease in interest income on loans, coupled with a decrease of $2.0 million in interest income on investment securities.

The decrease in interest income provided by loans reflects a $9.1 million decrease related to loan yield, partially offset by a $5.6 million increase attributable to loan volume.

The loan yield for the first quarter of 2026 was 6.16% compared to 6.23% from the preceding sequential quarter, representing a 7 basis point decrease.

The decrease in interest income on investment securities was primarily related to a $1.9 million decrease in interest income on taxable investment securities, which reflects a $913,000 decrease due to the decline in our investment portfolio average balances, coupled with a decrease of $1.0 million in interest income on taxable investment securities due to yield decreases over the period of 7 basis points.

The $5.6 million decrease in interest expense is primarily due to the $4.9 million decrease in interest expense on deposits.

A decrease of $7.8 million was related to deposit rates, due to the 15 basis point decrease related to deposit accounts.

The decrease due to rates was partially offset by a $2.9 million increase in interest expense attributable to deposit volume over the period.

Net Interest Income - Year-over-Year Analysis

Net interest income on a fully taxable equivalent basis for the three month period ended March 31, 2026 increased $30.3 million, or 17.9%, over the same period in 2025.

The increase in net interest income on a fully taxable equivalent basis was the result of a $9.4 million decrease in fully taxable equivalent interest income, more than offset by a $39.8 million decrease in interest expense.

Several factors contributed to the increase in net interest income on a fully taxable equivalent basis over the comparative period.

During 2025, we completed a balance sheet repositioning that included the transfer of approximately $3.6 billion investment securities classified as held-to-maturity (“HTM”) to the available-for-sale (“AFS”) investment securities portfolio, with a subsequent sale of approximately $3.2 billion in amortized cost basis of low-yielding AFS securities (including certain of those previously classified as HTM).

The pay-down of higher rate funding was completed throughout the third quarter of 2025, and thus the benefits (including interest expense savings) are only partially reflected in the results for the quarter.

The decrease in interest income on a fully taxable equivalent basis primarily resulted from a $12.1 million decrease in interest income on investment securities, which reflects a $19.0 million decrease due to the decline in our investment portfolio average balances, which decreased by $2.05 billion or 34.0%.

The pay-down of higher rate funding was completed in 2025.

The decrease in interest income on a fully taxable equivalent basis primarily resulted from a $18.9 million decrease in interest income on investment securities, which reflects a $27.6 million decrease in interest income on investment securities due to the decline in our investment portfolio average balances, which decreased by $2.92 billion or 47.5%.

The decrease was partially offset by an increase of $8.6 million in interest income on investment securities due to yield increases over the period of 81 basis points and 43 basis points for our taxable and non-taxable investment security portfolios, respectively.

These changes, including a $3.9 million increase in interest income related to interest bearing balances due from banks, were primarily due to the balance sheet repositioning previously discussed.

A $3.8 million increase in interest income on loans reflects a decrease attributable to loan volume of $1.1 million, more than offset by a $4.9 million increase in interest income related to loan yield.

The loan yield for the third quarter of 2025 was 6.31% compared to 6.26% from the preceding sequential quarter, representing a 5 basis point increase, driven by disciplined pricing of new originations, as well as positive fixed-rate loan repricing.

The $16.4 million decrease in interest expense is primarily due to an $8.2 million decrease in interest expense on time deposits and a $7.7 million decrease in interest expense related to other borrowings during the quarter.

Of the $8.2 million decrease in interest expense on time deposits, $1.4 million was due to the 14 basis point decrease in average rates on time deposits and $6.8 million was due to the decrease in time deposit volume over the period.

These changes were primarily due to a reduction of higher rate, non-relationship wholesale and public fund deposits, as well as higher rate other borrowings, as part of the balance sheet repositioning.

Net Interest Income - Year-over-Year Analysis

Net interest income on a fully taxable equivalent basis for the nine month period ended September 30, 2025 increased $55.6 million, or 11.5%, over the same period in 2024.

The increase in net interest income on a fully taxable equivalent basis was the result of a $52.5 million decrease in fully tax equivalent interest income, more than offset by a $108.2 million decrease in interest expense.

The decrease in interest income during the nine month period ended September 30, 2025 primarily resulted from decreases in interest income on loans and investments.

The decrease in interest income on loans was largely attributable to a 10 basis point decline in loan yield that resulted in a decrease of $13.8 million, while the incremental decrease in loan volume over the comparative periods led to a decrease of $4.2 million.

The decrease of $37.4 million in interest income on investment securities is primarily related to a $33.6 million decrease in interest income on investment securities due to the decline in our investment portfolio average balances, which decreased by $1.24 billion or 18.6%, primarily related to the balance sheet repositioning previously discussed, coupled with pay downs, maturities and a strategic sale of $251.5 million of lower-yielding AFS securities to pay off higher rate wholesale fundings consisting of Federal Home Loan Bank (“FHLB”) advances during the third quarter of 2024.

A yield decrease in the taxable investment portfolio over the period of 18 basis points led to a decrease of $5.5 million in interest income on taxable investment securities.

These changes were primarily due to the balance sheet repositioning previously discussed, coupled with pay downs and maturities over the period.

A $9.7 million increase in interest income on loans reflects an increase attributable to loan volume of $11.2 million, partially offset by a $1.5 million decrease in interest income related to loan yield due to a 4 basis point decline in loan yield over the comparative period.

The $39.8 million decrease in interest expense is mainly due to the decrease in our deposit account rates over the period.

Interest expense decreased $20.1 million due to the decrease in rate of 58 basis points on interest-bearing deposit accounts.

A $23.3 million decrease in interest income was related to the decrease in time deposit volume over the period.

A $13.6 million decrease in interest expense was related to the decrease in time deposit volume over the period.

Further, a decrease of $6.0 million in interest expense was related to reductions in the amounts outstanding under and rates on wholesale borrowings sources over the comparative period.

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Net Interest Margin

Our net interest margin on a fully tax equivalent basis was 3.50% and 3.17% for the three and nine month periods ended September 30, 2025, as compared to 3.06% and 2.70% for the three months ended June 30, 2025 and the nine months ended September 30, 2024, respectively.

Net interest margin experienced a 44 basis point increase for the three months ended September 30, 2025 compared to the preceding sequential quarter, while net interest margin increased 47 basis points during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.

The increase on a linked quarter basis was primarily due to the balance sheet repositioning during the period.

The increase when compared to the same period in the prior year was driven by the balance sheet repositioning, as well as reduced deposit costs and use of wholesale funding over the comparative periods.

Our net interest margin on a fully taxable equivalent basis was 3.84% for the three month period ended March 31, 2026, as compared to 3.81% and 2.95% for the three months ended December 31, 2025 and the three months ended March 31, 2025, respectively.

Net interest margin experienced a 3 basis point increase for the three months ended March 31, 2026 compared to the preceding sequential quarter, while net interest margin increased 89 basis points during the three months ended March 31, 2026 compared to the three months ended March 31, 2025.

While net interest margin expanded slightly during the three months ended March 31, 2026 as compared to the prior sequential quarter, the increase on a year over year comparative basis was primarily driven by the balance sheet repositioning, as well as reduced deposit costs and use of wholesale funding over the comparative periods.

Net Interest Income Tables

Tables 1 and 2 reflect an analysis of net interest income on a fully taxable equivalent basis for the three months ended September 30, 2025 and June 30, 2025 and the nine months ended September 30, 2025 and 2024, respectively.

Tables 1 and 2 reflect an analysis of net interest income on a fully taxable equivalent basis for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively.

Analysis of Net Interest Margin

(FTE = Fully Taxable Equivalent using an effective tax rate of 26.135%)

Three Months Ended Nine Months Ended

September 30, June 30, September 30, September 30,

Three Months Ended

March 31, December 31, March 31,

(In thousands) 2026 2025 2025

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Changes in Fully Taxable Equivalent Net Interest Margin

Three Months Ended Nine Months Ended

(In thousands) September 30, 2025 compared to June 30, 2025 September 30, 2025 compared to September 30, 2024

Decrease due to change in earning assets $ (16,041) $ (32,868)

Increase (decrease) due to change in earning asset yields 11,830 (19,681)

Increase due to change in interest bearing liabilities 14,802 34,538

Three Months Ended

(In thousands) March 31, 2026 compared to December 31, 2025 March 31, 2026 compared to March 31, 2025

Increase (decrease) due to change in earning assets $ 4,994 $ (16,012)

(Decrease) increase due to change in earning asset yields (10,589) 6,587

(Decrease) increase due to change in interest bearing liabilities (2,606) 18,391

Increase due to change in interest rates paid on interest bearing liabilities 8,195 21,378

Increase in net interest income $ 12,226 $ 55,635

Table 3 shows, for each major category of earning assets and interest bearing liabilities, the average (computed on a daily basis) amount outstanding, the interest earned or expensed on such amount and the average rate earned or expensed for the three months ended September 30, 2025 and June 30, 2025 and the nine months ended September 30, 2025 and 2024, respectively.

(Decrease) increase in net interest income $ (6) $ 30,344

Table 3 shows, for each major category of earning assets and interest bearing liabilities, the average (computed on a daily basis) amount outstanding, the interest earned or expensed on such amount and the average rate earned or expensed for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively.

The table also shows the average rate earned on all earning assets, the average rate expensed on all interest bearing liabilities, the net interest spread and the net interest margin for the same periods.

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Three Months Ended

September 30, 2025 June 30, 2025

Average Income/ Yield/ Average Income/ Yield/

(In thousands) Balance Expense Rate (%) Balance Expense Rate (%)

Earning assets:

Interest bearing balances due from banks and federal funds sold $ 566,344 $ 6,421 4.50 $ 219,928 $ 2,531 4.62

Investment securities - taxable 2,751,493 29,183 4.21 3,483,805 31,233 3.60

Investment securities - non-taxable 1,242,936 11,210 3.58 2,564,037 21,210 3.32

Mortgage loans held for sale 13,776 229 6.60 13,063 221 6.79

Assets held in trading accounts 11,305 99 3.47 — — —

Loans - including fees 16,976,231 270,092 6.31 17,046,802 266,250 6.26

Total interest earning assets 21,562,085 317,234 5.84 23,327,635 321,445 5.53

Non-earning assets 3,352,837 3,317,496

Total assets $ 24,914,922 $ 26,645,131

LIABILITIES AND STOCKHOLDERS’ EQUITY

Interest bearing liabilities:

Interest bearing transaction and savings deposits $ 11,043,132 $ 67,546 2.43 $ 11,220,060 $ 69,108 2.47

Time deposits 5,116,070 49,064 3.80 5,820,499 57,231 3.94

Total interest bearing deposits 16,159,202 116,610 2.86 17,040,559 126,339 2.97

Federal funds purchased and securities sold under agreements to repurchase 23,306 72 1.23 32,565 59 0.73

Other borrowings 268,278 2,957 4.37 960,817 10,613 4.43

Subordinated debt and debentures 407,922 7,123 6.93 366,350 6,188 6.77

Total interest bearing liabilities 16,858,708 126,762 2.98 18,400,291 143,199 3.12

Noninterest bearing liabilities:

Noninterest bearing deposits 4,369,941 4,390,454

Other liabilities 317,965 308,223

Total liabilities 21,546,614 23,098,968

Stockholders’ equity 3,368,308 3,546,163

Total liabilities and stockholders’ equity $ 24,914,922 $ 26,645,131

Net interest spread – FTE 2.86 2.41

Net interest margin – FTE $ 190,472 3.50 $ 178,246 3.06

Nine Months Ended

September 30, 2025 September 30, 2024

Average Income/ Yield/ Average Income/ Yield/

(In thousands) Balance Expense Rate (%) Balance Expense Rate (%)

March 31, 2026 December 31, 2025 March 31, 2025

Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/

(In thousands) Balance Expense Rate (%) Balance Expense Rate (%) Balance Expense Rate (%)

Earning assets:

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Net interest margin – FTE $ 200,180 3.84 $ 200,186 3.81 $ 169,836 2.95

Table 4 shows changes in interest income and interest expense resulting from changes in both volume and interest rates for the three months ended September 30, 2025 as compared to the three months ended June 30, 2025 and the nine months ended September 30, 2025 and 2024, respectively.

Table 4 shows changes in interest income and interest expense resulting from changes in both volume and interest rates for the three months ended March 31, 2026 as compared to the three months ended December 31, 2025 and March 31, 2025, respectively.

The changes in interest rate and volume have been allocated to changes in average volume and changes in average rates in proportion to the relationship of absolute dollar amounts of the changes in rates and volume.

Volume/Rate Analysis

Three Months Ended Nine Months Ended

September 30, 2025 compared to June 30, 2025 September 30, 2025 compared to September 30, 2024

Three Months Ended

March 31, 2026 compared to December 31, 2025 March 31, 2026 compared to March 31, 2025

(In thousands, on a fully taxable equivalent basis) Volume Yield/

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It is management’s practice to review the allowance on a monthly basis and, after considering the factors previously noted, to determine the level of provision made to the allowance.

The provision for credit losses for the three months ended September 30, 2025 was $12.0 million as compared to $11.9 million for the three months ended June 30, 2025.

Provision expense for both periods was related to loans and reflected loan growth in the quarters, as well as the impact of updated economic assumptions.

Provision expense for the three months ended September 30, 2025 also included a recapture of $3.2 million of provision related to HTM investment securities connected to the balance sheet repositioning during the period.

For the nine months ended September 30, 2025, our provision for credit losses was $50.7 million as compared to $33.5 million for the same period ended September 30, 2024.

The provision expense for the nine months ended September 30, 2025 reflected a provision expense of $15.6 million related to two specific credit relationships which migrated to nonperforming during the period, while provision expense for both periods reflected loan growth in the periods, as well as the impact of updated economic assumptions.

NONINTEREST INCOME (LOSS)

The provision for credit losses for the three months ended March 31, 2026 was $14.6 million as compared to $15.1 million for the three months ended December 31, 2025 and $26.8 million for the same period ended March 31, 2025.

Provision expense for each period was related to loans and reflected loan growth in the quarters, as well as the impact of updated economic assumptions.

The provision expense for the three months ended March 31, 2025 also reflected a provision expense of $15.6 million related to two specific credit relationships which migrated to nonperforming during the period.

NONINTEREST INCOME

Noninterest income is principally derived from recurring fee income, which includes service charges, wealth management fees and debit and credit card fees.

Noninterest income also includes income on the sale of mortgage loans, income from the increase in cash surrender values of bank owned life insurance and gains (losses) from sales of securities.

For the three month period ended September 30, 2025, we generated a noninterest loss of $756.2 million, a decrease of approximately $798.5 million, compared to noninterest income for the three month period ended June 30, 2025.

The decrease for the three month period ended September 30, 2025 as compared to the preceding sequential quarter is primarily related to a pre-tax loss on the sale of securities of $801.5 million.

During the period, we sold approximately $3.2 billion in amortized cost basis of low yielding investment securities, as part of a balance sheet repositioning to deleverage the balance sheet through the pay-down of higher rate, non-relationship wholesale and public fund deposits, as well as higher rate other borrowings primarily consisting of FHLB advances.

During the three month period ended September 30, 2025, we also recognized a $570,000 loss on early extinguishment of debt.

Adjusting for these certain items, adjusted noninterest income for the three month period ended September 30, 2025 increased $3.5 million, or 8.3%, from the prior sequential quarter.

The increase in adjusted noninterest income on a sequential quarter basis was primarily due to a $1.4 million Small Business Investment Company (“SBIC”) negative valuation adjustment recorded during the prior sequential quarter, which is included in “Other income” in the table below.

Noninterest income (loss) for the nine months ended September 30, 2025 decreased by approximately $771.3 million as compared to the nine months ended September 30, 2024.

The decrease, as compared to the same period in 2024, was primarily due to losses on sale of securities of $801.5 million discussed above and $28.4 million, recognized during each respective period.

Adjusting for these certain items, adjusted noninterest income for the nine month period ended September 30, 2025 increased $2.4 million, or 1.8%, from the prior comparative period.

Table 5 shows noninterest income for the three month periods ended September 30, 2025 and June 30, 2025 and the nine months ended September 30, 2025 and 2024, respectively, as well as changes between periods.

Noninterest Income (Loss)

Three Months Ended Nine Months Ended

September 30, June 30, Change September 30, September 30, Change

For the three month period ended March 31, 2026, total noninterest income was $44.2 million, a decrease of approximately $7.5 million or 14.5%, compared to the three month period ended December 31, 2025 and a decrease of $2.0 million or 4.2%, as compared to the three months ended March 31, 2025.

The decrease for the three month period ended March 31, 2026 as compared to both prior comparative quarters is largely due to a $2.1 million Small Business Investment Company (“SBIC”) negative valuation adjustment recorded during the three months ended March 31, 2026.

During the prior sequential quarter, proceeds of $3.3 million in bank owned life insurance death benefits were recorded, which further contributed to the decrease between comparative periods.

These adjustments are included in “Other income” in the table below.

Table 5 shows noninterest income for the three month periods ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively, as well as changes between periods.

Noninterest Income

Three Months Ended

March 31, December 31, March 31, Change from Quarter - Sequential Change from Quarter - Year-over-Year

(Dollars in thousands) 2026 2025 2025

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Other service charges and fees 1,606 1,503 1,333 103 6.9 273 20.5

Loss on sale of securities, net (801,492) — (801,492) * (801,492) (28,393) (773,099) *

Other income 4,827 12,365 8,007 (7,538) (61.0) (3,180) (39.7)

Total noninterest income (loss) $ (756,187) $ 42,354 $ (798,541) * $ (667,678) $ 103,613 $ (771,291) *

_________________________

*Not meaningful

Recurring fee income (total service charges, wealth management fees, debit and credit card fees) was $33.0 million and $31.9 million for the three month periods ended September 30, 2025 and June 30, 2025, respectively, and was $96.9 million and $92.4 million for the nine month periods ended September 30, 2025 and 2024, respectively.

The increase over both comparative periods is primarily related to the increases in wealth management fees due to fee growth and market performance and in service charges on deposit accounts due to growth in consumer accounts and performance related to commercial treasury management.

Total noninterest income $ 44,197 $ 51,708 $ 46,155 $ (7,511) (14.5)% $ (1,958) (4.2)%

Recurring fee income (total service charges, wealth management fees, debit and credit card fees) was $33.3 million, $33.2 million and $32.0 million for the three month periods ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively.

NONINTEREST EXPENSE

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We also regularly monitor staffing levels at each subsidiary to ensure productivity and overhead are in line with existing workload requirements.

Noninterest expense was $142.0 million for the three month period ended September 30, 2025, as compared to noninterest expense of $138.6 million for the three month period ended June 30, 2025, representing an increase of $3.4 million, or 2.5%, as compared to the preceding quarter.

Adjusted noninterest expense, which excludes branch right sizing and early retirement program costs, for the three months ended September 30, 2025 was $139.7 million, an increase of $2.9 million as compared to the three months ended June 30, 2025.

Noninterest expense for the nine months ended September 30, 2025 increased by approximately $8.8 million or 2.1% as compared to the nine months ended September 30, 2024.

Adjusted noninterest expense, which excludes branch right sizing, early retirement program costs, FDIC special assessment (for the nine months ended September 30, 2024) and termination of vendor and software services (for the nine months ended September 30, 2024), increased $7.7 million, or 1.9%, as compared to the nine months ended September 30, 2024.

Salaries and employee benefits expense increased $2.4 million during the three month period ended September 30, 2025 as compared to the preceding sequential quarter and increased $12.4 million during the nine month period ended September 30, 2025 when compared to the same period in the prior year.

The increase as compared to the preceding sequential quarter is primarily due to salary and employee benefits accrual adjustments given the Company’s financial performance through the third quarter of 2025.

The increase as compared to the same period in the prior year is primarily due to employee merit increases over the comparative periods, coupled with the previously mentioned performance accrual adjustments.

Deposit insurance expense for the three and nine months ended September 30, 2025 as compared to the three months ended June 30, 2025 and nine months ended September 30, 2024 increased by $258,000 and decreased by $2.9 million, respectively.

While the variance in deposit insurance expense on a sequential quarter basis is relatively flat, the decrease on a year over year basis for the nine months ended September 30, 2025 is significantly attributable to the additional FDIC special assessments totaling $1.8 million during the nine months ended September 30, 2024, which were levied to support the Deposit Insurance Fund following the failure of certain banks in 2023.

Table 6 below shows noninterest expense for the three month periods ended September 30, 2025 and June 30, 2025 and the nine months ended September 30, 2025 and 2024, respectively, as well as changes between periods.

Noninterest expense was $140.7 million for the three month period ended March 31, 2026, as compared to noninterest expense of $139.9 million for the three month period ended December 31, 2025, representing an increase of $811,000, or 0.6%, as compared to the preceding quarter.

Adjusted noninterest expense, which excludes branch right sizing, early retirement program costs (for the three months ended March 31, 2026), FDIC special assessment (for the three months ended March 31, 2026), professional services (for the three months ended March 31, 2026), termination of vendor and software services (for the three months ended December 31, 2025), and loss on sale of an equipment finance business (for the three months ended December 31, 2025), for the three months ended March 31, 2026 was $140.6 million, an increase of $2.0 million as compared to the three months ended December 31, 2025.

Noninterest expense for the three months ended March 31, 2026 decreased by approximately $3.9 million or 2.7% as compared to the three months ended March 31, 2025.

Salaries and employee benefits expense increased $3.0 million during the three month period ended March 31, 2026 as compared to the preceding sequential quarter and increased $1.1 million during the three month period ended March 31, 2026 when compared to the same period in the prior year.

The increase as compared to the preceding sequential quarter primarily reflects a seasonal increase in payroll tax expense.

The increase as compared to the same period in the prior year is primarily due to employee merit increases over the comparative periods.

Deposit insurance expense for the three months ended March 31, 2026 as compared to the three months ended December 31, 2025 and three months ended March 31, 2025 decreased by $2.4 million and $3.1 million, respectively.

The decrease for the three months ended March 31, 2026 as compared to the prior periods is significantly attributable to a $2.0 million FDIC special assessment recapture recorded in the period.

Other noninterest expense decreased $388,000 during the three month period ended March 31, 2026 as compared to the preceding sequential quarter and decreased $3.6 million during the three month period ended March 31, 2025 when compared to the same period in the prior year.

While the variance in other noninterest expense on a sequential quarter basis is relatively flat, the decrease on a year over year basis for the three month period ended March 31, 2026 is primarily due to a $4.3 million charge related to a commercial customer deposit fraud event that was identified during the three month period ended March 31, 2025.

Table 6 below shows noninterest expense for the three month periods ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively, as well as changes between periods.

Noninterest Expense

Three Months Ended Nine Months Ended

September 30, June 30, Change September 30, September 30, Change

Three Months Ended

March 31, December 31, March 31, Change from Quarter - Sequential Change from Quarter - Year-over-Year

(Dollars in thousands) 2026 2025 2025

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Our securities portfolio is the second largest component of earning assets and provides a significant source of revenue.

Securities within the portfolio are classified as held-to-maturity (“HTM”), AFS or trading.

Securities within the portfolio are classified as HTM, AFS or trading.

Our philosophy regarding investments is conservative based on investment type and maturity.

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Our general policy is not to invest in derivative type investments or high-risk securities, except for collateralized MBS for which collection of principal and interest is not subordinated to significant superior rights held by others.

As of September 30, 2025, AFS investment securities and assets held in trading accounts were $3.32 billion and $12.7 million, respectively.

As of December 31, 2024, AFS and HTM investment securities were $2.53 billion and $3.64 billion, respectively.

As of March 31, 2026, AFS investment securities and assets held in trading accounts were $3.15 billion and $14.5 million, respectively.

As of December 31, 2025, AFS and assets held in trading accounts were $3.27 billion and $11.7 million, respectively.

We continue to look for opportunities to maximize the value of the investment portfolio.

During the third quarter of 2025, the Company and its subsidiaries initiated and completed steps taken to reposition the Company’s consolidated balance sheet and reclassified approximately $3.6 billion in HTM investment securities to AFS investment securities.

Subsequently, the Company sold approximately $3.2 billion in amortized cost basis of AFS securities (including certain of those previously classified as HTM).

During the third quarter of 2025, we initiated and completed steps taken to reposition the Company’s consolidated balance sheet and reclassified approximately $3.59 billion in HTM investment securities to AFS investment securities.

Subsequently, we sold approximately $3.16 billion in amortized cost basis of AFS securities (including certain of those previously classified as HTM).

The sale of investment securities resulted in a realized, after-tax loss of $625.6 million (based on actual tax rate of 21.946%).

The AFS securities sold were low-yield bonds and, by removing these bonds from our balance sheet, we reduced our level of high-cost wholesale funding and increased our ability to generate higher earnings and growth.

During the quarters ended June 30, 2022 and September 30, 2021, the Company transferred, at fair value, $1.99 billion and $500.8 million, respectively, of securities from the AFS portfolio to the HTM portfolio.

During the quarters ended June 30, 2022 and September 30, 2021, we transferred, at fair value, $1.99 billion and $500.8 million, respectively, of securities from the AFS portfolio to the HTM portfolio.

No gains or losses on these securities were recognized at the time of transfer.

During the balance sheet repositioning that occurred during the third quarter of 2025, these securities were transferred out of the HTM portfolio to the AFS portfolio at fair value.

The previous related remaining combined net unrealized losses in accumulated other comprehensive income (loss), which losses were $99.4 million, were either recognized as part of the securities transfer and subsequent sale of certain securities or will be amortized into income over the remaining life of the security.

As of September 30, 2025, we had the ability to hold the securities classified as AFS for a period of time sufficient for a recovery of amortized cost and we believed the accounting standard of “more likely than not” has not been met regarding whether we would be required to sell any of the AFS securities before recovery of amortized cost.

As of September 30, 2025, the unrealized losses were largely due to increases in market interest rates over the yields available at the time the underlying securities were purchased.

During the balance sheet repositioning that occurred during 2025, the remaining securities were transferred out of the HTM portfolio to the AFS portfolio at fair value and either subsequently sold or maintained within the AFS portfolio.

As of March 31, 2026, we had the ability to hold the securities classified as AFS for a period of time sufficient for a recovery of amortized cost and we believed the accounting standard of “more likely than not” has not been met regarding whether we would be required to sell any of the AFS securities before recovery of amortized cost.

As of March 31, 2026, the unrealized losses were largely due to increases in market interest rates over the yields available at the time the underlying securities were purchased.

The fair value is expected to recover as the bonds approach their maturity date or repricing date or if market yields for such investments decline.

Accordingly, as of September 30, 2025, we believed the declines in fair value are temporary and we did not believe any of the securities are impaired due to reasons of credit quality.

Accordingly, as of March 31, 2026, we believed the declines in fair value are temporary and we did not believe any of the securities are impaired due to reasons of credit quality.

The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments.

We expect the cash flows from principal maturities of securities to provide flexibility to fund future loan growth or reduce wholesale funding.

Maturity Distribution of Investment Securities

Table 7 reflects the amortized cost and estimated fair value of securities at September 30, 2025, by contractual maturity and the weighted average yields (for tax-exempt obligations on a fully taxable equivalent basis, assuming a 26.135% tax rate) of such securities and is presented due to the reclassification and sale of certain securities during the quarter.

Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations, with or without call or prepayment penalties.

September 30, 2025

1 year 5 years Total

1 year through through Over No fixed Amortized Par Fair

(In thousands) or less 5 years 10 years 10 years maturity Cost Value Value

Available-for-Sale

Government agencies $ 50 $ 28,118 $ 2,859 $ 18,025 $ — $ 49,052 $ 48,354 $ 48,355

Mortgage-backed securities — — — — 2,446,711 2,446,711 2,422,050 2,249,593

State and political subdivisions 4,835 12,746 22,603 1,005,507 — 1,045,691 1,074,697 845,371

Other securities 6,004 63,761 112,547 — 208 182,520 182,515 175,958

Total $ 10,889 $ 104,625 $ 138,009 $ 1,023,532 $ 2,446,919 $ 3,723,974 $ 3,727,616 $ 3,319,277

Percentage of total 0.3 % 2.8 % 3.7 % 27.5 % 65.7 % 100.0 %

Weighted average yield 1.6 % 5.1 % 3.7 % 2.8 % 3.1 % 3.1 %

During the third quarter of 2021, we began utilizing interest rate swaps designated as fair value hedges to mitigate the effect of changing interest rates on the fair values of $1.00 billion of fixed rate callable municipal securities held in the AFS portfolio.

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Securities within these swap agreements have maturity dates varying between 2028 and 2029.

For the nine months ended September 30, 2025, the net amount included in interest income on investment securities in the consolidated statements of income related to these swap agreements was $24.2 million.

For the three months ended March 31, 2026, the net amount included in interest income on investment securities in the consolidated statements of income related to these swap agreements was $6.2 million.

LOAN PORTFOLIO

Our loan portfolio averaged $16.98 billion and $17.07 billion during the first nine months of 2025 and 2024, respectively.

As of September 30, 2025, total loans were $17.19 billion, an increase of $182.9 million from December 31, 2024.

The increase in the loan balance during the first nine months of 2025 when compared to December 31, 2024 is primarily due to growth in the real estate - construction and development, agricultural and mortgage warehouse portfolios over the comparative period, while we continued to focus on maintaining prudent underwriting standards and pricing discipline.

Our loan portfolio averaged $17.66 billion and $16.92 billion during the first three months of 2026 and 2025, respectively.

As of March 31, 2026, total loans were $17.93 billion, an increase of $440.7 million from December 31, 2025.

The increase in the loan balance during the first three months of 2026 when compared to December 31, 2025 is primarily due to growth in the commercial real estate, commercial and industrial and mortgage warehouse portfolios over the comparative period, while we continued to focus on maintaining prudent underwriting standards and pricing discipline.

The most significant components of the loan portfolio were loans to businesses (commercial loans, commercial real estate loans and agricultural loans) and individuals (consumer loans, credit card loans and single-family residential real estate loans).

7 unchanged sentences

Loan Portfolio

September 30, December 31,

March 31, December 31,

(In thousands) 2026 2025

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Consumer loans consist of credit card loans and other consumer loans.

Consumer loans were $285.4 million at September 30, 2025, or 1.7% of total loans, compared to $309.0 million, or 1.8% of total loans at December 31, 2024.

The decrease in consumer loans from December 31, 2024, to September 30, 2025, was primarily due to loan payoffs and pay downs within both the credit card and other consumer portfolios during the period.

Consumer loans were $269.0 million at March 31, 2026, or 1.5% of total loans, compared to $291.2 million, or 1.7% of total loans at December 31, 2025.

The decrease in consumer loans from December 31, 2025, to March 31, 2026, was primarily due to loan payoffs and pay downs within both the credit card and other consumer portfolios during the period.

Real estate loans consist of construction and development loans (“C&D”) loans, single-family residential loans and commercial real estate (“CRE”) loans.

Real estate loans were $13.37 billion at September 30, 2025, or 77.8% of total loans, compared to $13.39 billion, or 78.7%, of total loans at December 31, 2024, a decrease of $23.2 million, or 0.2%.

Our C&D loans increased by $85.6 million, or 3.1%, while single family residential loans decreased by $72.1 million, or 2.7%, and CRE loans decreased by $36.7 million, or 0.5%.

The changes among our real estate portfolio reflected our focus on maintaining conservative underwriting standards and structure guidelines while emphasizing prudent pricing discipline during the first nine months of 2025.

Real estate loans were $13.95 billion at March 31, 2026, or 77.8% of total loans, compared to $13.77 billion, or 78.7%, of total loans at December 31, 2025, an increase of $181.4 million, or 1.3%.

Our C&D loans decreased by $251.9 million, or 8.8%, while single family residential loans decreased by $41.3 million, or 1.6%, and CRE loans increased by $474.7 million, or 5.7%.

We expect to continue to manage our C&D and CRE portfolio concentration by developing deeper relationships with our customers.

Commercial loans consist of non-real estate loans related to business and agricultural loans.

Total commercial loans were $2.75 billion at September 30, 2025, or 16.0% of total loans, compared to $2.70 billion, or 15.8% of total loans at December 31, 2024, an increase of $55.2 million, or 2.0%.

The increase in commercial loans was largely related to the increase in agricultural loans of $92.0 million, or 35.2%, primarily due to seasonality of the portfolio, which normally peaks in the third quarter.

Total commercial loans were $2.85 billion at March 31, 2026, or 15.9% of total loans, compared to $2.69 billion, or 15.4% of total loans at December 31, 2025, an increase of $166.3 million, or 6.2%.

The increase in commercial loans was largely related to the increase in commercial and industrial loans of $139.1 million, or 5.8%.

Other loans mainly consist of mortgage warehouse lending and municipal loans.

Mortgage volume experienced an increase in demand during the first nine months of 2025 as compared to December 31, 2024, leading to an increase of $174.5 million in other loans.

Our commercial loan pipeline consisting of all commercial loan opportunities was $1.61 billion at September 30, 2025 compared to $1.26 billion at December 31, 2024.

Mortgage volume experienced an increase in demand during the first three months of 2026 as compared to December 31, 2025, leading to an increase of $115.2 million in other loans.

Our commercial loan pipeline consisting of all commercial loan opportunities was $1.56 billion at March 31, 2026 compared to $1.54 billion at December 31, 2025.

Commercial loans approved and ready to close at the end of the quarter totaled $651.4 million.

Our commercial loan pipeline consisting of all commercial loan opportunities was $2.21 billion at October 31, 2025, while commercial loans approved and ready to close at the end of October 2025 totaled $785.7 million with a weighted average rate (not including fees) of 7.00%.

ASSET QUALITY

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The credit card recovery group pursues account holders until it is determined, on a case-by-case basis, to be uncollectible.

Total nonperforming assets increased $39.5 million from December 31, 2024 to September 30, 2025.

Nonaccrual loans increased by $43.4 million from December 31, 2024 and foreclosed assets held for sale and other real estate owned decreased $2.9 million as compared to December 31, 2024.

The increase in nonaccrual loans was primarily due to two specific credit relationships being placed on nonaccrual status during the period.

One relationship totaling $26.7 million relates to a downtown St.

Louis hotel that was originated pre-pandemic and has been on our classified list since April of 2021.

This is the only credit relationship within our portfolio located in downtown St.

The other relationship totaling $22.6 million relates to a fast-food operator and has been on our classified list since June of 2024 due to sector-related headwinds and global cash flow concerns with the borrower.

Total nonperforming assets increased $29.5 million from December 31, 2025 to March 31, 2026.

Nonaccrual loans increased by $29.4 million from December 31, 2025 and foreclosed assets held for sale and other real estate owned increased $466,000 as compared to December 31, 2025.

The increase in nonaccrual loans was primarily due to a single real estate construction relationship totaling $26.9 million that is well collateralized and that management believes has limited loss content.

From time to time, certain borrowers experience declines in income and cash flow.

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We have internal loan modification programs for borrowers experiencing financial difficulties.

Modifications to borrowers experiencing financial difficulties (“FDMs”) may include interest rate reductions, principal or interest forgiveness and/or term extensions.

Modifications to borrowers experiencing financial difficulties may include interest rate reductions, principal or interest forgiveness and/or term extensions.

We primarily use interest rate reduction and/or payment modifications or extensions, with an occasional forgiveness of principal.

There were eleven loan modifications granted to borrowers experiencing financial difficulty during the nine month period ended September 30, 2025.

Such modifications included interest rate reductions and/or term extensions and had a total period-end amortized cost basis of $849,000 at September 30, 2025.

The allowance for credit losses as a percent of total loans was 1.50% as of September 30, 2025.

There were four loan modifications granted to borrowers experiencing financial difficulty during the three month period ended March 31, 2026.

Such modifications included interest rate reductions and/or term extensions and had a total period-end amortized cost basis of $2.5 million at March 31, 2026.

The allowance for credit losses as a percent of total loans was 1.28% as of March 31, 2026.

Nonperforming loans equaled 0.79% of total loans.

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The allowance for credit losses was 162% of nonperforming loans.

Our annualized net charge-offs to average total loans ratio for the first nine months of 2025 was 0.24%.

Annualized net credit card charge-offs to average total credit card loans were 3.11% for the first nine months of 2025, compared to 2.93% during the full year 2024, and 120 basis points better than the most recently published industry average charge-off ratio as reported by the Federal Reserve for all banks.

Our annualized net charge-offs to average total loans ratio for the first three months of 2026 was 0.21%.

Annualized net credit card charge-offs to average total credit card loans were 2.81% for the first three months of 2026, compared to 2.95% during the full year 2025, and 122 basis points better than the most recently published industry average charge-off ratio as reported by the Federal Reserve for all banks.

Table 8 presents information concerning nonperforming assets, including nonaccrual loans at amortized cost and foreclosed assets held for sale.

Nonperforming Assets

September 30, December 31, September 30,

March 31, December 31, March 31,

(Dollars in thousands) 2026 2025 2025

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_______________________________________

(1) Includes nonaccrual FDMs of approximately $28.2 million and $597,000 at September 30, 2025 and December 31, 2024, respectively.

The interest income on nonaccrual loans is not considered material for the three and nine month periods ended September 30, 2025 and 2024.

(1) Includes nonaccrual FDMs of approximately $935,000 and $853,000 at March 31, 2026 and December 31, 2025, respectively.

The interest income on nonaccrual loans is not considered material for the three month periods ended March 31, 2026 and 2025.

ALLOWANCE FOR CREDIT LOSSES

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Provision for credit losses 14,622 26,797

Balance, September 30, $ 258,006 $ 233,223

Balance, March 31, $ 229,908 $ 252,168

Loans charged off:

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Provision for Credit Losses

The amount of provision added to or released from the allowance during the three and nine months ended September 30, 2025 and 2024, and for the year ended December 31, 2024, was based on management’s judgment, with consideration given to the composition and asset quality of the portfolio, historical loan loss experience, and assessment of current and expected economic forecasts and conditions.

The amount of provision added to or released from the allowance during the three months ended March 31, 2026 and 2025, and for the year ended December 31, 2025, was based on management’s judgment, with consideration given to the composition and asset quality of the portfolio, historical loan loss experience, and assessment of current and expected economic forecasts and conditions.

It is management’s practice to review the allowance on a monthly basis, and after considering the factors previously noted, to determine the level of provision made to the allowance.

Allowance for Credit Losses Allocation

As of September 30, 2025, the allowance for credit losses reflected an increase of approximately $23.0 million from December 31, 2024, while total loans increased by $182.9 million over the same nine month period.

As of March 31, 2026, the allowance for credit losses reflected an increase of approximately $5.5 million from December 31, 2025, while total loans increased by $440.7 million over the same three month period.

The allocation in each category within the allowance generally reflects the overall changes in the loan portfolio mix.

The increase in the allowance for credit losses during the first nine months of 2025 was primarily due to a provision expense of $15.6 million related to two specific credit relationships which migrated to nonperforming during the period, as well as the impact of updated economic forecasts.

Our allowance for credit losses at September 30, 2025 was considered appropriate given the current economic environment and other related factors.

The increase in the allowance for credit losses during the first three months of 2026 was primarily due to the impact of loan growth and updated economic assumptions during the period.

Our allowance for credit losses at March 31, 2026 was considered appropriate given the current economic environment and other related factors.

The following table sets forth the sum of the amounts of the allowance for credit losses attributable to individual loans within each category, or loan categories in general.

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Allocation of Allowance for Credit Losses

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

(Dollars in thousands) Allowance

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(1) Percentage of loans in each category to total loans.

Deposits are our primary source of funding for earning assets and are primarily developed through our network of 223 financial centers as of September 30, 2025.

Deposits are our primary source of funding for earning assets and are primarily developed through our network of 221 financial centers as of March 31, 2026.

We offer a variety of products designed to attract and retain customers with a continuing focus on developing core deposits.

Our core deposits consist of all deposits excluding time deposits of $250,000 or more and brokered deposits.

As of September 30, 2025, core deposits comprised 84.5% of our total deposits.

As of March 31, 2026, core deposits comprised 83.5% of our total deposits.

We continually monitor the funding requirements along with competitive interest rates in the markets we serve.

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We are continually monitoring and looking for opportunities to fairly reprice our deposits while remaining competitive in this current challenging rate environment.

Our total deposits as of September 30, 2025, were $19.84 billion, compared to $21.89 billion as of December 31, 2024.

Noninterest bearing transaction accounts, interest bearing transaction accounts and savings accounts totaled $15.31 billion at September 30, 2025, compared to $15.44 billion at December 31, 2024, a decrease of $132.4 million.

Total time deposits decreased $1.92 billion to $4.53 billion at September 30, 2025, from $6.44 billion at December 31, 2024.

We had $1.84 billion and $3.30 billion of brokered deposits at September 30, 2025, and December 31, 2024, respectively.

The decrease in time deposits and brokered deposits over the comparative period is largely due to the balance sheet repositioning during the third quarter of 2025, including the pay-down of higher rate, non-relationship wholesale and public fund deposits.

Our total deposits as of March 31, 2026, were $20.20 billion, compared to $20.18 billion as of December 31, 2025.

Noninterest bearing transaction accounts, interest bearing transaction accounts and savings accounts totaled $15.60 billion at March 31, 2026, compared to $15.47 billion at December 31, 2025, an increase of $130.3 million.

Total time deposits decreased $111.6 million to $4.60 billion at March 31, 2026, from $4.71 billion at December 31, 2025.

We had $1.91 billion and $1.89 billion of brokered deposits at March 31, 2026, and December 31, 2025, respectively.

We are continuing to refine our product offerings to give customers flexibility of choice while maintaining the ability to adjust interest rates timely in the current rate environment.

Table 12 reflects the classification of the average deposits and the average rate paid on each deposit category which is in excess of 10 percent of average total deposits for the nine months ended September 30, 2025 and the year ended December 31, 2024.

Table 11 reflects the classification of the average deposits and the average rate paid on each deposit category which is in excess of 10 percent of average total deposits for the three months ended March 31, 2026 and the year ended December 31, 2025.

Average Deposit Balances and Rates

September 30, 2025 December 31, 2024

(In thousands) Average Amount Average Rate Paid Average Amount Average Rate Paid

March 31, 2026 December 31, 2025

(Dollars in thousands) Average Amount Average Rate Paid Average Amount Average Rate Paid

Noninterest bearing transaction accounts $ 4,229,952 — % $ 4,379,001 — %

Interest bearing transaction and savings deposits 11,328,148 2.06 % 11,102,447 2.39 %

11,146,423 2.45 % 10,974,529 2.81 %

Time deposits 4,678,058 3.46 % 5,412,448 3.90 %

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OTHER BORROWINGS AND SUBORDINATED NOTES AND DEBENTURES

Our total debt was $667.8 million and $1.11 billion at September 30, 2025 and December 31, 2024, respectively.

The outstanding balance for September 30, 2025 includes $2.7 million in FHLB advances;

Our total debt was $762.5 million and $620.0 million at March 31, 2026 and December 31, 2025, respectively.

The outstanding balance for March 31, 2026 includes $431.6 million in FHLB advances;

$315.7 million in subordinated notes and unamortized debt issuance costs;

and $15.2 million of other long-term debt.

The decrease in total debt over the comparative period is due to the pay down of higher cost wholesale funding, primarily FHLB advances, as part of the balance sheet repositioning during the period.

In March 2018, we issued $330.0 million in aggregate principal amount of 2018 Notes at a public offering price equal to 100% of the aggregate principal amount of the 2018 Notes.

We incurred $3.6 million in debt issuance costs related to the offering.

The 2018 Notes were to mature on April 1, 2028;

during the third quarter of 2025, the Company issued a notice of redemption to redeem the 2018 Notes, which were redeemed in full on October 1, 2025.

The related remaining $565,000 of unamortized debt issuance costs were written off during the quarter ended September 30, 2025.

We assumed Fixed-to-Floating Rate Subordinated Notes in an aggregate principal amount, net of premium adjustments, of $37.4 million in connection with the Spirit acquisition in April 2022 (“Spirit Notes”).

During the second quarter of 2025, we issued a notice of redemption to redeem the Spirit Notes in an aggregate principal amount of $37.0 million.

The Spirit Notes were redeemed in full on July 31, 2025.

FHLB advances outstanding at March 31, 2026 are primarily whole loan advances, which are due less than one year from origination and therefore are classified as short-term advances.

In September 2025, we issued $325.0 million in aggregate principal amount of 2025 Notes at a public offering price equal to 100% of the aggregate principal amount of the 2025 Notes.

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The 2025 Notes are obligations of the Company only and are not obligations of, and are not guaranteed by, any of its subsidiaries.

For information about the regulatory capital treatment of the 2018 Notes, 2025 Notes and the Spirit Notes, see the section “ Capital—Risk-Based Capital .”

At September 30, 2025, total capital was $3.35 billion.

For information about the regulatory capital treatment of the 2025 Notes, see the section “ Capital—Risk-Based Capital .”

At March 31, 2026, total capital was $3.44 billion.

Capital represents shareholder ownership in the Company – the book value of assets in excess of liabilities.

At September 30, 2025, our common equity to asset ratio was 13.85% compared to 13.13% at year-end 2024.

At March 31, 2026, our common equity to asset ratio was 13.92% compared to 13.93% at year-end 2025.

Capital Stock

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On April 27, 2022, our shareholders approved an amendment to our Articles of Incorporation to remove the classification and designation for the Series D Preferred Stock.

As of September 30, 2025 and December 31, 2024, there were no shares of preferred stock issued or outstanding.

As of March 31, 2026 and December 31, 2025, there were no shares of preferred stock issued or outstanding.

On May 17, 2024, we filed a shelf registration with the SEC.

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In January 2024, our Board of Directors authorized a stock repurchase program (“2024 Program”) under which we could repurchase up to $175.0 million of our Class A common stock currently issued and outstanding.

Because the 2022 Program was set to terminate on January 31, 2024, our Board of Directors authorized a new stock repurchase program in January 2024 (“2024 Program”) under which we may repurchase up to $175.0 million of our Class A common stock currently issued and outstanding.

The 2024 Program, which replaced the 2022 Program, will be executed in accordance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended (“Exchange Act”) and will terminate on January 31, 2026 (unless terminated sooner).

Under the 2024 Program, we may repurchase shares of our common stock through open market and privately negotiated transactions or otherwise.

The 2024 Program terminated in January 2026, and our Board of Directors authorized a new stock repurchase program in January 2026 (“2026 Program”) under which we may repurchase up to $175.0 million of our Class A common stock currently issued and outstanding.

The 2026 Program will be executed in accordance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended, and will terminate on January 31, 2028 (unless terminated sooner).

Under the 2026 Program, which replaced the 2024 Program, we may repurchase shares of our common stock through open market and privately negotiated transactions or otherwise.

The timing, pricing, and amount of any repurchases under the 2026 Program will be determined by management at its discretion based on a variety of factors, including, but not limited to, trading volume and market price of our common stock, corporate considerations, our working capital and investment requirements, general market and economic conditions, and legal requirements.

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We anticipate funding for this 2026 Program to come from available sources of liquidity, including cash on hand and future cash flow.

No shares were repurchased during the three and nine month periods ended September 30, 2025 and 2024.

No shares were repurchased during the three month periods ended March 31, 2026 and 2025.

Market conditions and the Company’s capital needs, among other things, will drive decisions regarding additional, future stock repurchases.

Cash Dividends

We declared cash dividends on our common stock of $0.6375 per share for the first nine months of 2025 compared to $0.63 per share for the first nine months of 2024, an increase of $0.0075, or 1%.

We declared cash dividends on our common stock of $0.2150 per share for the first three months of 2026 compared to $0.2125 per share for the first three months of 2025, an increase of $0.0025, or 1%.

The timing and amount of future dividends are at the discretion of our Board of Directors and will depend upon our consolidated earnings, financial condition, liquidity and capital requirements, the amount of cash dividends paid to us by our subsidiaries, applicable government regulations and policies and other factors considered relevant by our Board of Directors.

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Quantitative measures established by regulation to ensure capital adequacy require us to maintain minimum amounts and ratios (set forth in the table below) of total, Tier 1 and common equity Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier 1 capital (as defined) to average assets (as defined).

Management believes that, as of September 30, 2025, we met all capital adequacy requirements to which we are subject.

Management believes that, as of March 31, 2026, we met all capital adequacy requirements to which we are subject.

As of the most recent notification from regulatory agencies, Simmons Bank was well capitalized under the regulatory framework for prompt corrective action.

To be categorized as well capitalized, the Company and Simmons Bank must maintain minimum total risk-based, Tier 1 risk-based, common equity Tier 1 risk-based and Tier 1 leverage ratios as set forth in the table.

There are no conditions or events since that notification that management believes have changed the institution’s categories.

The Company’s risk-based capital ratios at September 30, 2025 and December 31, 2024 are presented in Table 13 below:

There are no conditions or events since that notification that management believes have changed the bank’s categories.

The Company’s risk-based capital ratios at March 31, 2026 and December 31, 2025 are presented in Table 12 below:

Risk-Based Capital

September 30, December 31,

March 31, December 31,

(Dollars in thousands) 2026 2025

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Stockholders’ equity $ 3,437,734 $ 3,419,240

CECL transition provision — 30,873

Goodwill and other intangible assets (1,370,562) (1,374,839)

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Subordinated notes and debentures 315,700 317,714

Subordinated debt phase out (198,000) (132,000)

Qualifying allowance for credit losses and reserve for unfunded commitments 255,537 250,006

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Regulatory Capital Changes

In December 2018, the Federal Reserve, Office of the Comptroller of the Currency and Federal Deposit Insurance Corporation (“FDIC”) (collectively, the “agencies”) issued a final rule revising regulatory capital rules in anticipation of the adoption of ASU 2016-13 that provided an option to phase in over a three year period on a straight line basis the day-one impact of the adoption on earnings and Tier 1 capital (the “CECL Transition Provision”).

In March 2020 and in response to the COVID-19 pandemic, the agencies issued a new regulatory capital rule revising the CECL Transition Provision to delay the estimated impact on regulatory capital stemming from the implementation of ASU 2016-13.

The rule provided banking organizations that implement CECL before the end of 2020 the option to delay for two years an estimate of CECL’s effect on regulatory capital, followed by a three-year transition period (the “2020 CECL Transition Provision”).

The Company elected to apply the 2020 CECL Transition Provision.

The Basel III Capital Rules define the components of capital and address other issues affecting the numerator in banking institutions’ regulatory capital ratios.

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The rules also raised the minimum ratio of Tier 1 capital to risk-weighted assets to 6.0% and require a minimum leverage ratio of 4.0%.

Qualifying subordinated debt of $451.0 million and $234.3 million is included as Tier 2 and total capital of the Company for periods ended September 30, 2025 and December 31, 2024, respectively.

Qualifying subordinated debt of $315.7 million and $317.7 million is included as Tier 2 and total capital of the Company for periods ended March 31, 2026 and December 31, 2025, respectively.

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

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the effects of future economic conditions (including unemployment levels and slowdowns in economic growth), governmental monetary and fiscal policies (including the policies of the Federal Reserve, as well as legislative and regulatory changes);

changes in tariff policies;

general business conditions, as well as conditions within the financial markets, developments impacting the financial services industry, such as bank failures or concerns involving liquidity;

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changes in the assumptions used in making the forward-looking statements;

developments in information technology affecting the financial industry;

developments in information technology affecting the financial industry, including but not limited to artificial intelligence;

cyber threats, attacks or events, including at third parties on which we rely for key services;

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possible adverse rulings, judgments, settlements, fines and other outcomes of pending or future litigation or government actions;

market disruptions, including pandemics or significant health hazards, severe weather conditions, natural disasters, terrorist activities, financial crises, political crises, war and other military conflicts (including the ongoing military conflicts between Russia and Ukraine) or other major events, or the prospect of these events;

changes in tariff policies;

general economic and market conditions;

changes in governmental administration;

market disruptions, including pandemics or significant health hazards, severe weather conditions, natural disasters, terrorist activities, financial crises, political crises, war and other military conflicts (including the ongoing military conflicts) or other major events, or the prospect of these events;

changes in customer behaviors and preferences, including consumer spending, borrowing and saving habits;

the soundness of other financial institutions and indirect exposure related to the closings of other financial institutions and their impact on the broader market through other customers, suppliers and partners (or that the conditions which resulted in the liquidity concerns that led to the large regional bank failures during 2023 may also adversely impact, directly or indirectly, other financial institutions and market participants with which the Company has commercial or deposit relationships);

the soundness of other financial institutions and indirect exposure related to the closings of other financial institutions and their impact on the broader market through other customers, suppliers and partners (or that the conditions which resulted in the liquidity concerns experienced by closed financial institutions may also adversely impact, directly or indirectly, other financial institutions and market participants with which the Company has commercial or deposit relationships);

the loss of key employees;

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significant increases in nonaccrual loan balances;

the effects of government legislation;

the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds, and other financial institutions operating in our market area and elsewhere, including institutions operating regionally, nationally and internationally, together with such competitors offering banking products and services by mail, cell-phone/tablet, telephone, computer and the Internet;

the effects of government legislation, including tax rules and regulations or changes or interpretations thereof;

elsewhere, including institutions operating regionally, nationally, and internationally, together with such competitors offering banking products and services by mail, cell-phone/tablet, telephone, computer and the internet;

the failure of assumptions underlying the establishment of reserves for possible credit losses, fair value for loans, other real estate owned and other cautionary statements set forth elsewhere in this report.

Additional information on factors that might cause the Company’s results to differ materially from those disclosed in the forward-looking statements is included in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of this quarterly report, the Company’s annual report on Form 10-K for the year ended December 31, 2025, and related disclosures in other filings with the SEC, which are available on the SEC’s website at www.sec.gov.

Many of these factors are beyond our ability to predict or control, and actual results could differ materially from those in the forward-looking statements due to these factors and others.

Many of these factors are beyond our ability to predict or control, and actual results could differ materially from those projected in or contemplated by the forward-looking statements due to these factors and others.

In addition, as a result of these and other factors, our past financial performance should not be relied upon as an indication of future performance.

Further, there can be no guarantee that the Board of Directors of the Company will approve a quarterly dividend in future quarters, and the timing, payment and amount of future dividends (if any) is subject to, among other things, the discretion of the Company’s Board of Directors and may differ significantly from past dividends.

We believe the assumptions and expectations that underlie or are reflected in our forward-looking statements are reasonable, based on information available to us on the date hereof.

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GAAP RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

The tables below present computations of adjusted earnings (net income excluding certain items {net branch right sizing costs, FDIC special assessment, termination of vendor and software services, early retirement program costs, loss on early extinguishment of debt, loss on sale of securities and tax effect}) (non-GAAP), and adjusted diluted earnings per share (non-GAAP) as well as a computation of tangible book value per share (non-GAAP), tangible common equity to tangible assets (non-GAAP), adjusted noninterest income (non-GAAP), adjusted noninterest expense (non-GAAP), uninsured, non-collateralized deposits (non-GAAP) and the coverage ratio of uninsured, non-collateralized deposits (non-GAAP).

The tables below present computations of adjusted earnings (net income excluding certain items {net branch right sizing costs, FDIC special assessment, termination of vendor and software services, early retirement program costs, professional services, loss on sale of equipment finance business and tax effect}) (non-GAAP), and adjusted diluted earnings per share (non-GAAP) as well as a computation of tangible book value per share (non-GAAP), tangible common equity to tangible assets (non-GAAP), and adjusted noninterest expense (non-GAAP).

Adjusted items are included in financial results presented in accordance with generally accepted accounting principles (US GAAP).

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• Investor presentations of Company performance

We have $1.408 billion and $1.418 billion total goodwill and other intangible assets for the periods ended September 30, 2025 and December 31, 2024, respectively.

We have $1.402 billion and $1.405 billion total goodwill and other intangible assets for the periods ended March 31, 2026 and December 31, 2025, respectively.

Because our acquisition strategy has resulted in a high level of intangible assets, management believes useful calculations include tangible book value per share (non-GAAP) and tangible common equity to tangible assets (non-GAAP).

We believe that presenting these non-GAAP financial measures permits investors and analysts to assess the performance of the Company on the same basis as that is applied by management and the Board of Directors.

We believe that presenting these non-GAAP financial measures will permit investors and analysts to assess the performance of the Company on the same basis that is applied by management and the Board of Directors.

Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied and are not audited.

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Reconciliation of Adjusted Earnings (non-GAAP)

Three Months Ended Nine Months Ended

September 30, June 30, September 30, September 30,

Three Months Ended

March 31, December 31, March 31,

(In thousands, except per share data) 2026 2025 2025

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Certain items:

Loss on early extinguishment of debt 570 — 570 —

Loss on sale of equipment finance business — 1,118 —

FDIC Special Assessment (1,984) — —

Professional services 1,200 — —

Early retirement program 283 — —

Termination of vendor and software services — 12 —

Loss on sale of securities 801,492 — 801,492 28,393

Branch right sizing (net) 531 85 994

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Certain items:

Loss on early extinguishment of debt — — — —

Loss on sale of equipment finance business — 0.01 —

FDIC Special Assessment (0.01) — —

Professional services 0.01 — —

Early retirement program — — —

Termination of vendor and software services — — —

Loss on sale of securities 5.70 — 6.11 0.23

Branch right sizing (net) — — —

Tax effect (1)

(1.25) — (1.34) (0.07)

Certain items, net of tax — — —

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_______________________________________

(1) Actual tax rate of 21.946% on 2025 loss on sale of securities.

Effective tax rate of 26.135% on all other items.

(1) Effective tax rate of 26.135%.

(2) See Note 15, Earnings Per Share (“EPS”), for number of shares used to determine EPS.

See Table 15 below for the reconciliation of adjusted noninterest income and adjusted noninterest expense for the periods presented.

Reconciliations of Adjusted Noninterest Income (non-GAAP) and Adjusted Noninterest Expense (non-GAAP)

Three Months Ended Nine Months Ended

September 30, June 30, September 30, September 30,

See Table 14 below for the reconciliation of adjusted noninterest expense for the periods presented.

Reconciliations of Adjusted Noninterest Expense (non-GAAP)

Three Months Ended

March 31, December 31, March 31,

(In thousands) 2026 2025 2025

Noninterest income $ (756,187) $ 42,354 $ (667,678) $ 103,613

Certain items:

Loss on early extinguishment of debt 570 — 570 —

Loss on sale of securities 801,492 — 801,492 28,393

Total certain items 802,062 — 802,062 28,393

Adjusted noninterest income (non-GAAP) $ 45,875 $ 42,354 $ 134,384 $ 132,006

Noninterest expense $ 140,673 $ 139,862 $ 144,580

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FDIC Special Assessment 1,984 — —

Professional services (1,200) — —

Loss on sale of equipment finance business — (1,118) —

Branch right sizing (531) (85) (994)

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Reconciliation of Tangible Book Value per Share (non-GAAP)

September 30, December 31,

March 31, December 31,

(In thousands, except per share data) 2026 2025

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Reconciliation of Tangible Common Equity and the Ratio of Tangible Common Equity to Tangible Assets (non-GAAP)

September 30, December 31,

March 31, December 31,

(Dollars in thousands) 2026 2025

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Ratio of tangible common equity to tangible assets (non-GAAP) 8.74 % 8.71 %

See Table 18 below for the reconciliation of uninsured, non-collateralized deposits and the calculation of uninsured, non-collateralized deposit coverage ratio.

Reconciliation of Uninsured, Non-Collateralized Deposits and the Calculation of Uninsured, Non-Collateralized Deposit Coverage Ratio (non-GAAP)

September 30, December 31,

(In thousands) 2025 2024

Uninsured deposits at Simmons Bank $ 9,565,766 $ 8,467,291

Collateralized deposits (excluding portion that is FDIC insured) 2,169,362 2,790,339

Intercompany eliminations 2,937,147 1,045,734

Total uninsured, non-collateralized deposits $ 4,459,257 $ 4,631,218

FHLB borrowing availability $ 6,134,000 $ 4,716,000

Unpledged securities 1,575,000 4,103,000

Fed funds lines, Fed discount window and Bank Term Funding Program (1)

1,824,000 2,081,000

Additional liquidity sources $ 9,533,000 $ 10,900,000

Uninsured, non-collateralized deposit coverage ratio 2.1x 2.4x

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(1) The Bank Term Funding Program closed for new loans on March 11, 2024.

At no time did the Company borrow funds under this program.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis