10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

(Mark One)

☑ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Quarterly Period Ended September 30, 2024

or

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Transition period from ______ to ______

Commission File Number: 001-41093

HOME BANCSHARES, INC.

(Exact Name of Registrant as Specified in Its Charter)

Arkansas	71-0682831
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
719 Harkrider, Suite 100, Conway, Arkansas	72032
(Address of principal executive offices)	(Zip Code)
(501) 339-2929
(Registrant's telephone number, including area code)
Not Applicable
Former name, former address and former fiscal year, if changed since last report

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	HOMB	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

Large Accelerated Filer	☑	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date.

Common Stock Issued and Outstanding: 198,798,186 shares as of October 31, 2024.

HOME BANCSHARES, INC. FORM 10-Q September 30, 2024
INDEX
		Page No.
Part I:	Financial Information
Item 1:	Financial Statements
	Consolidated Balance Sheets – September 30, 2024 (Unaudited) and December 31, 2023	4
	Consolidated Statements of Income (Unaudited) – Three and nine months ended September 30, 2024 and 2023	5
	Consolidated Statements of Comprehensive Income (Loss) (Unaudited) – Three and nine months ended September 30, 2024 and 2023	6
	Consolidated Statements of Stockholders’ Equity (Unaudited) – Three and nine months ended September 30, 2024 and 2023	7-8
	Consolidated Statements of Cash Flows (Unaudited) – Nine months ended September 30, 2024 and 2023	9
	Condensed Notes to Consolidated Financial Statements (Unaudited)	10-49
	Report of Independent Registered Public Accounting Firm	50
Item 2:	Management’s Discussion and Analysis of Financial Condition and Results of Operations	51-86
Item 3:	Quantitative and Qualitative Disclosures About Market Risk	86-88
Item 4:	Controls and Procedures	88-89
Part II:	Other Information
Item 1:	Legal Proceedings	89
Item 1A:	Risk Factors	89
Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds	89
Item 3:	Defaults Upon Senior Securities	89
Item 4:	Mine Safety Disclosures	89
Item 5:	Other Information	89
Item 6:	Exhibits	90-91
Signatures		92

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Some of our statements contained in this document, including matters discussed under the caption “Management's Discussion and Analysis of Financial Condition and Results of Operation,” are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements relate to expectations, beliefs, projections, future financial performance, future plans and strategies, and anticipated events or trends, and include statements about the competitiveness of the banking industry, potential regulatory obligations, our entrance and expansion into other markets, including through potential acquisitions, our other business strategies and other statements that are not historical facts. Forward-looking statements are not guarantees of performance or results. When we use words like “may,” “plan,” “contemplate,” “anticipate,” “believe,” “intend,” “continue,” “expect,” “project,” “predict,” “estimate,” “could,” “should,” “would,” and similar expressions, you should consider them as identifying forward-looking statements, although we may use other phrasing. These forward-looking statements involve risks and uncertainties and are based on our beliefs and assumptions, and on the information available to us at the time that these disclosures were prepared. These forward-looking statements involve risks and uncertainties and may not be realized due to a variety of factors, including, but not limited to, the following:

•the effects of future local, regional, national and international economic conditions, including inflation or a decrease in commercial real estate and residential housing values;

•changes in the level of nonperforming assets and charge-offs, and credit risk generally;

•the risks of changes in interest rates or the level and composition of deposits, loan demand and the values of loan collateral, securities and interest-sensitive assets and liabilities;

•disruptions, uncertainties and related effects on credit quality, liquidity, other aspects of our business and our operations that may result from any future public health crises;

•the ability to identify, complete and successfully integrate new acquisitions;

•the risk that expected cost savings and other benefits from acquisitions may not be fully realized or may take longer to realize than expected;

•diversion of management time on acquisition-related issues;

•the availability of and access to capital and liquidity on terms acceptable to us;

•increased regulatory requirements and supervision that applies as a result of our having over $10 billion in total assets;

•legislation and regulation affecting the financial services industry as a whole, and the Company and its subsidiaries in particular, and future legislative and regulatory changes;

•changes in governmental monetary and fiscal policies;

•the effects of terrorism and efforts to combat it, political instability, war, military conflicts (including the ongoing military conflicts in the Middle East and Ukraine) and other major domestic or international events;

•the impacts of recent or future adverse weather events, including hurricanes, and other natural disasters;

•the ability to keep pace with technological changes, including changes regarding cybersecurity;

•an increase in the incidence or severity of, or any adverse effects resulting from, acts of fraud, illegal payments, cybersecurity breaches or other illegal acts impacting our bank subsidiary, our vendors or our customers;

•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 competitors offering banking products and services by mail, telephone and the Internet;

•potential claims, expenses and other adverse effects related to current or future litigation, regulatory examinations or other government actions;

•potential increases in deposit insurance assessments, increased regulatory scrutiny, investment portfolio losses, or market disruptions resulting from financial challenges in the banking industry;

•the effect of changes in accounting policies and practices and auditing requirements, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board, and other accounting standard setters;

•higher defaults on our loan portfolio than we expect; and

•the failure of assumptions underlying the establishment of our allowance for credit losses or changes in our estimate of the adequacy of the allowance for credit losses.

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this Cautionary Note. Our actual results may differ significantly from those we discuss in these forward-looking statements. For other factors, risks and uncertainties that could cause our actual results to differ materially from estimates and projections contained in these forward-looking statements, see the “Risk Factors” section of our Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 26, 2024 and this Form 10-Q.

PART I: FINANCIAL INFORMATION

Item 1: Financial Statements

Home BancShares, Inc.

Consolidated Balance Sheets

(In thousands, except share data)	September 30, 2024		December 31, 2023
	(Unaudited)
Assets
Cash and due from banks	$	265,408	$	226,363
Interest-bearing deposits with other banks	752,269		773,850
Cash and cash equivalents	1,017,677		1,000,213
Fed funds sold	6,425		5,100
Investment securities — available-for-sale, net of allowance for credit losses of $2,195 and $2,525 at September 30, 2024 and December 31, 2023, respectively (amortized cost of $3,529,325 and $3,840,927 at September 30, 2024 and December 31, 2023, respectively)	3,270,620		3,507,841
Investment securities — held-to-maturity, net of allowance for credit losses of $2,005 at both September 30, 2024 and December 31, 2023	1,277,090		1,281,982
Total investment securities	4,547,710		4,789,823
Loans receivable	14,823,979		14,424,728
Allowance for credit losses	(312,574)		(288,234)
Loans receivable, net	14,511,405		14,136,494
Bank premises and equipment, net	388,776		393,300
Foreclosed assets held for sale	43,040		30,486
Cash value of life insurance	219,353		214,516
Accrued interest receivable	118,871		118,966
Deferred tax asset, net	176,629		197,164
Goodwill	1,398,253		1,398,253
Core deposit intangibles	42,395		48,770
Other assets	352,583		323,573
Total assets	$	22,823,117	$	22,656,658
Liabilities and Stockholders’ Equity
Deposits:
Demand and non-interest-bearing	$	3,937,168	$	4,085,501
Savings and interest-bearing transaction accounts	10,966,426		11,050,347
Time deposits	1,802,116		1,651,863
Total deposits	16,705,710		16,787,711
Securities sold under agreements to repurchase	179,416		142,085
FHLB and other borrowed funds	1,300,750		1,301,300
Accrued interest payable and other liabilities	238,058		194,653
Subordinated debentures	439,394		439,834
Total liabilities	18,863,328		18,865,583
Stockholders’ equity:
Common stock, par value $0.01; shares authorized 300,000,000 in 2024 and 2023; shares issued and outstanding 198,878,950 in 2024 and 201,526,494 in 2023	1,989		2,015
Capital surplus	2,272,100		2,348,023
Retained earnings	1,880,562		1,690,112
Accumulated other comprehensive loss	(194,862)		(249,075)
Total stockholders’ equity	3,959,789		3,791,075
Total liabilities and stockholders’ equity	$	22,823,117	$	22,656,658

See Condensed Notes to Consolidated Financial Statements.

4

Home BancShares, Inc.

Consolidated Statements of Income

	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands, except per share data)	2024		2023		2024		2023
	(Unaudited)
Interest income:
Loans	$	281,977	$	249,464	$	821,595	$	729,613
Investment securities
Taxable	31,006		34,520		96,822		104,559
Tax-exempt	7,704		7,868		23,276		23,763
Deposits – other banks	12,096		2,328		35,188		10,742
Federal funds sold	62		82		182		156
Total interest income	332,845		294,262		977,063		868,833
Interest expense:
Interest on deposits	97,785		78,698		286,074		208,007
Federal funds purchased	1		1		1		3
FHLB and other borrowed funds	14,383		8,161		42,914		20,947
Securities sold under agreements to repurchase	1,335		1,344		4,102		3,333
Subordinated debentures	4,121		4,121		12,340		12,368
Total interest expense	117,625		92,325		345,431		244,658
Net interest income	215,220		201,937		631,632		624,175
Provision for credit losses on loans	18,200		2,800		31,700		6,300
Provision for (recovery of) credit losses on unfunded commitments	1,000		(1,500)		—		(1,500)
(Recovery of) provision for credit losses on investment securities	(330)		—		(330)		1,683
Total credit loss expense	18,870		1,300		31,370		6,483
Net interest income after credit loss expense	196,350		200,637		600,262		617,692
Non-interest income:
Service charges on deposit accounts	9,888		10,062		29,288		29,135
Other service charges and fees	10,490		10,128		31,358		33,766
Trust fees	4,403		4,660		14,191		13,576
Mortgage lending income	4,437		3,132		12,271		8,353
Insurance commissions	595		562		1,668		1,606
Increase in cash value of life insurance	1,161		1,170		3,635		3,485
Dividends from FHLB, FRB, FNBB & other	2,637		2,916		8,642		8,632
Gain on sale of SBA loans	145		97		399		236
Gain on sale of branches, equipment and other assets, net	32		—		2,076		924
Gain on OREO, net	85		—		151		319
Fair value adjustment for marketable securities	1,392		4,507		2,121		(6,118)
Other income	7,514		6,179		21,552		33,172
Total non-interest income	42,779		43,413		127,352		127,086
Non-interest expense:
Salaries and employee benefits	58,861		64,512		180,198		193,536
Occupancy and equipment	14,546		15,463		43,505		45,338
Data processing expense	9,088		9,103		27,170		27,222
Other operating expenses	27,550		25,684		83,853		79,592
Total non-interest expense	110,045		114,762		334,726		345,688
Income before income taxes	129,084		129,288		392,888		399,090
Income tax expense	29,046		30,835		91,211		92,404
Net income	$	100,038	$	98,453	$	301,677	$	306,686
Basic earnings per share	$	0.50	$	0.49	$	1.51	$	1.51
Diluted earnings per share	$	0.50	$	0.49	$	1.51	$	1.51

See Condensed Notes to Consolidated Financial Statements.

5

Home BancShares, Inc.

Consolidated Statements of Comprehensive Income (Loss)

	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2024		2023		2024		2023
	(Unaudited)
Net income	$	100,038	$	98,453	$	301,677	$	306,686
Net unrealized gain (loss) on available-for-sale securities	88,303		(76,279)		74,062		(59,353)
Other comprehensive income (loss) before tax effect	88,303		(76,279)		74,062		(59,353)
Tax effect on other comprehensive (income) loss	(21,366)		18,427		(19,849)		14,281
Other comprehensive income (loss)	66,937		(57,852)		54,213		(45,072)
Comprehensive income	$	166,975	$	40,601	$	355,890	$	261,614

See Condensed Notes to Consolidated Financial Statements.

6

Home BancShares, Inc.

Consolidated Statements of Stockholders’ Equity

Three and Nine Months Ended September 30, 2024
(In thousands, except share data)	Common Stock		Capital Surplus		Retained Earnings		Accumulated Other Comprehensive Loss		Total
Balances at January 1, 2024	$	2,015	$	2,348,023	$	1,690,112	$	(249,075)	$	3,791,075
Comprehensive income:
Net income	—		—		100,109		—		100,109
Other comprehensive loss	—		—		—		(22,350)		(22,350)
Net issuance of 76,542 shares of common stock from exercise of stock options	1		670		—		—		671
Repurchase of 1,025,934 shares of common stock	(10)		(24,007)		—		—		(24,017)
Share-based compensation net issuance of 219,750 shares of restricted common stock	2		2,273		—		—		2,275
Excise tax from repurchase of common stock	—		(135)		—		—		(135)
Cash dividends – Common Stock, $0.18 per share	—		—		(36,227)		—		(36,227)
Balances at March 31, 2024 (unaudited)	$	2,008	$	2,326,824	$	1,753,994	$	(271,425)	$	3,811,401
Comprehensive income:
Net income	—		—		101,530		—		101,530
Other comprehensive income	—		—		—		9,626		9,626
Net issuance of 149,507 shares of common stock from exercise of stock options	1		(2)		—		—		(1)
Repurchase of 1,400,094 shares of common stock	(14)		(32,590)		—		—		(32,604)
Share-based compensation net issuance of 200,000 shares of restricted common stock	2		1,946		—		—		1,948
Excise tax from repurchase of common stock	—		(285)		—		—		(285)
Cash dividends – Common Stock, $0.18 per share	—		—		(36,112)		—		(36,112)
Balances at June 30, 2024 (unaudited)	$	1,997	$	2,295,893	$	1,819,412	$	(261,799)	$	3,855,503
Comprehensive income:
Net Income	—		—		100,038		—		100,038
Other comprehensive loss	—		—		—		66,937		66,937
Net issuance of 95,852 shares of common stock from exercise of stock options	1		698		—		—		699
Repurchase of 1,000,000 shares of common stock	(10)		(26,922)		—		—		(26,932)
Share-based compensation net forfeiture of 36,833 shares of restricted stock	1		2,494		—		—		2,495
Excise tax from repurchase of common stock	—		(63)		—		—		(63)
Cash dividends – Common Stock, $0.195 per share	—		—		(38,888)		—		(38,888)
Balances at September 30, 2024 (unaudited)	$	1,989	$	2,272,100	$	1,880,562	$	(194,862)	$	3,959,789

See Condensed Notes to Consolidated Financial Statements.

7

Home BancShares, Inc.

Consolidated Statements of Stockholders’ Equity

For the Three and Nine Months Ended September 30, 2023
(In thousands, except share data)	Common Stock		Capital Surplus		Retained Earnings		Accumulated Other Comprehensive Loss		Total
Balances at January 1, 2023	$	2,034	$	2,386,699	$	1,443,087	$	(305,458)	$	3,526,362
Comprehensive income:
Net income	—		—		102,962		—		102,962
Other comprehensive income	—		—		—		49,157		49,157
Net issuance of 66,451 shares of common stock from exercise of stock options	1		85		—		—		86
Repurchase of 590,000 shares of common stock	(6)		(13,534)		—		—		(13,540)
Share-based compensation net issuance of 258,000 shares of restricted common stock	3		2,504		—		—		2,507
Cash dividends – Common Stock, $0.18 per share	—		—		(36,649)		—		(36,649)
Balances at March 31, 2023 (unaudited)	$	2,032	$	2,375,754	$	1,509,400	$	(256,301)	$	3,630,885
Comprehensive income:
Net Income	—		—		105,271		—		105,271
Other comprehensive loss	—		—		—		(36,377)		(36,377)
Net issuance of 15,575 shares of common stock from exercise of stock options	—		275		—		—		275
Repurchase of 560,849 shares of common stock	(5)		(11,804)		—		—		(11,809)
Share-based compensation net forfeiture of 50,000 shares of restricted common stock	(1)		2,335		—		—		2,334
Cash dividends – Common Stock, $0.18 per share	—		—		(36,495)		—		(36,495)
Balances at June 30, 2023 (unaudited)	$	2,026	$	2,366,560	$	1,578,176	$	(292,678)	$	3,654,084
Comprehensive income:
Net Income	—		—		98,453		—		98,453
Other comprehensive loss	—		—		—		(57,852)		(57,852)
Net issuance of 11,538 shares of common stock from exercise of stock options	—		70		—		—		70
Repurchase of 260,000 shares of common stock	(3)		(5,655)		—		—		(5,658)
Share-based compensation net forfeiture of 1,000 shares of restricted stock	—		2,235		—		—		2,235
Cash dividends – Common Stock, $0.18 per share	—		—		(36,458)		—		(36,458)
Balances at September 30, 2023 (unaudited)	$	2,023	$	2,363,210	$	1,640,171	$	(350,530)	$	3,654,874

See Condensed Notes to Consolidated Financial Statements.

8

Home BancShares, Inc.

Consolidated Statements of Cash Flows

	Nine Months Ended September 30,
(In thousands)	2024		2023
	(Unaudited)
Operating Activities
Net income	$	301,677	$	306,686
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation & amortization	21,994		22,677
(Increase) decrease in value of equity securities	(2,121)		6,118
Amortization of securities, net	11,083		12,441
Accretion of purchased loans	(6,523)		(8,263)
Share-based compensation	6,718		7,076
Gain on assets	(2,627)		(1,479)
Provision for credit losses - loans	31,700		6,300
Recovery of credit losses - unfunded commitments	—		(1,500)
(Recovery of) provision for credit losses - investment securities	(330)		1,683
Deferred income tax effect	686		861
Increase in cash value of life insurance	(3,635)		(3,485)
Originations of mortgage loans held for sale	(467,339)		(365,412)
Proceeds from sales of mortgage loans held for sale	477,185		315,520
Changes in assets and liabilities:
Accrued interest receivable	95		(7,747)
Other assets	(26,428)		(7,293)
Accrued interest payable and other liabilities	43,405		(20,010)
Net cash provided by operating activities	385,540		264,173
Investing Activities
Net increase in federal funds sold	(1,325)		(3,925)
Net (increase) decrease in loans	(428,985)		181,505
Purchases of investment securities – available-for-sale	(62,643)		(8,433)
Proceeds from maturities of investment securities – available-for-sale	363,011		504,220
Proceeds from maturities of investment securities – held-to-maturity	5,054		4,383
Proceeds from sales of equity securities	—		1,522
Purchase of other investments	(445)		(1,798)
Proceeds from foreclosed assets held for sale	1,475		846
Proceeds from sale of SBA loans	5,573		3,454
Purchases of premises and equipment	(24,277)		(17,503)
Proceeds from sales of premises and equipment	14,818		10,724
(Purchase of) return of investment on cash value of life insurance, net	(1,218)		3,813
Net cash (used in) provided by investing activities	(128,962)		678,808
Financing Activities
Net decrease in deposits	(82,001)		(1,420,038)
Net increase in securities sold under agreements to repurchase	37,331		28,974
Decrease in FHLB and other borrowed funds	(1,400,550)		(1,065,000)
Increase in FHLB and other borrowed funds	1,400,000		1,416,550
Proceeds from exercise of stock options, net	1,369		431
Repurchase of common stock	(84,036)		(31,007)
Dividends paid on common stock	(111,227)		(109,602)
Net cash used in financing activities	(239,114)		(1,179,692)
Net change in cash and cash equivalents	17,464		(236,711)
Cash and cash equivalents – beginning of year	1,000,213		724,790
Cash and cash equivalents – end of period	$	1,017,677	$	488,079

See Condensed Notes to Consolidated Financial Statements.

9

Home BancShares, Inc.

Condensed Notes to Consolidated Financial Statements

(Unaudited)

1. Nature of Operations and Summary of Significant Accounting Policies

Nature of Operations

Home BancShares, Inc. (the “Company” or “HBI”) is a bank holding company headquartered in Conway, Arkansas. The Company is primarily engaged in providing a full range of banking services to individual and corporate customers through its wholly-owned community bank subsidiary – Centennial Bank (sometimes referred to as “Centennial” or the “Bank”). The Bank has branch locations in Arkansas, Florida, South Alabama, Texas and New York City. The Company is subject to competition from other financial institutions. The Company also is subject to the regulation of certain federal and state agencies and undergoes periodic examinations by those regulatory authorities.

A summary of the significant accounting policies of the Company follows:

Operating Segments

Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Bank is the only significant subsidiary upon which management makes decisions regarding how to allocate resources and assess performance. Each of the branches of the Bank provides a group of similar banking services, including such products and services as commercial, real estate and consumer loans, time deposits, checking and savings accounts. The individual bank branches have similar operating and economic characteristics. While the chief decision maker monitors the revenue streams of the various products, services and branch locations, operations are managed, and financial performance is evaluated on a company-wide basis. Accordingly, all of the banking services and branch locations are considered by management to be aggregated into one reportable operating segment.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses, the valuation of investment securities, the valuation of foreclosed assets and the valuations of assets acquired, and liabilities assumed in business combinations. In connection with the determination of the allowance for credit losses and the valuation of foreclosed assets, management obtains independent appraisals for significant properties.

Principles of Consolidation

The consolidated financial statements include the accounts of HBI and its subsidiaries. Significant intercompany accounts and transactions have been eliminated in consolidation.

Reclassifications

Various items within the accompanying consolidated financial statements for previous years have been reclassified to provide more comparative information. These reclassifications had no effect on net earnings or stockholders’ equity.

Interim financial information

The accompanying unaudited consolidated financial statements have been prepared in condensed format, and therefore do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.

The information furnished in these interim statements reflects all adjustments which are, in the opinion of management, necessary for a fair statement of the results for each respective period presented. Such adjustments are of a normal recurring nature. The results of operations in the interim statements are not necessarily indicative of the results that may be expected for any other quarter or for the full year. The interim financial information should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2023 Form 10-K, filed with the Securities and Exchange Commission on February 26, 2024.

10

Loans Receivable and Allowance for Credit Losses

Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding principal balance adjusted for any charge-offs, deferred fees or costs on originated loans. Interest income on loans is accrued over the term of the loans based on the principal balance outstanding. Loan origination fees and direct origination costs are capitalized and recognized as adjustments to yield on the related loans.

The allowance for credit losses on loans receivable is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the uncollectability of a loan balance is confirmed and expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off.

Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in the national unemployment rate, gross domestic product, national retail sales index, FHFA housing price index and rental vacancy rate index.

The allowance for credit losses is measured based on call report segment as these types of loans exhibit similar risk characteristics. The identified loan segments are as follows:

•1-4 family construction

•All other construction

•1-4 family revolving home equity lines of credit (“HELOC”) & junior liens

•1-4 family senior liens

•Multifamily

•Owner occupied commercial real estate

•Non-owner occupied commercial real estate

•Commercial & industrial, agricultural, non-depository financial institutions, purchase/carry securities, other

•Consumer auto

•Other consumer

•Other consumer - Shore Premier Finance ("SPF")

The allowance for credit losses for each segment is measured through the use of the discounted cash flow method. Loans evaluated individually that are considered to be collateral dependent are not included in the collective evaluation. For these loans, where the Company has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the loan to be provided substantially through the operation or sale of the collateral, the allowance for credit losses is measured based on the difference between the fair value of the collateral, net of estimated costs to sell, and the amortized cost basis of the loan as of the measurement date. When repayment is expected to be from the operation of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the loan exceeds the present value of expected cash flows from the operation of the collateral. The allowance for credit losses may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the loan, net of estimated costs to sell. For individually analyzed loans which are not considered to be collateral dependent, an allowance is recorded based on the loss rate for the respective pool within the collective evaluation.

Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments and curtailments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies:

•Management has a reasonable expectation at the reporting date that restructured loans made to borrowers experiencing financial difficulty will be executed with an individual borrower.

•The extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company.

11

Management qualitatively adjusts model results for risk factors that are not considered within our modeling processes but are nonetheless relevant in assessing the expected credit losses within our loan pools. These qualitative factors ("Q-Factors") and other qualitative adjustments may increase or decrease management's estimate of expected credit losses by a calculated percentage or amount based upon the estimated level of risk. The various risks that may be considered in making Q-Factor and other qualitative adjustments include, among other things, the impact of (i) changes in lending policies, procedures and strategies; (ii) changes in nature and volume of the portfolio; (iii) staff experience; (iv) changes in volume and trends in classified loans, delinquencies and nonaccruals; (v) concentration risk; (vi) trends in underlying collateral values; (vii) external factors such as competition, legal and regulatory environment; (viii) changes in the quality of the loan review system; and (ix) economic conditions.

Loans are placed on non-accrual status when management believes that the borrower’s financial condition, after giving consideration to economic and business conditions and collection efforts, is such that collection of interest is doubtful, or generally when loans are 90 days or more past due. Loans are charged against the allowance for credit losses when management believes that the collectability of the principal is unlikely. Accrued interest related to non-accrual loans is generally charged against the allowance for credit losses when accrued in prior years and reversed from interest income if accrued in the current year. Interest income on non-accrual loans may be recognized to the extent cash payments are received, although the majority of payments received are usually applied to principal. Non-accrual loans are generally returned to accrual status when principal and interest payments are less than 90 days past due, the customer has made required payments for at least six months, and we reasonably expect to collect all principal and interest.

Purchased loans that have experienced more than insignificant credit deterioration since origination are purchase credit deteriorated (“PCD”) loans. An allowance for credit losses is determined using the same methodology as other loans. The Company develops separate PCD models for each loan segment with PCD loans not individually analyzed for credit losses. These models utilize a peer group benchmark in order to determine the probability of default and loss given default to be used in the calculation. The sum of the loan’s purchase price and allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a non-credit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the allowance for credit losses are recorded through the provision for credit losses.

For further discussion of the Company’s acquisitions, see Note 2 to the Notes to Consolidated Financial Statements.

Allowance for Credit Losses on Off-Balance Sheet Credit Exposures

The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on off-balance sheet credit exposures is adjusted as a provision for or recovery of credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life.

Earnings per Share

Basic earnings per share is computed based on the weighted-average number of shares outstanding during each year. Diluted earnings per share is computed using the weighted-average shares and all potential dilutive shares outstanding during the period. The following table sets forth the computation of basic and diluted earnings per share (“EPS”) for the following periods:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(In thousands)
Net income	$	100,038	$	98,453	$	301,677	$	306,686
Average shares outstanding	199,380		202,526		200,300		202,921
Effect of common stock options	81		124		130		147
Average diluted shares outstanding	199,461		202,650		200,430		203,068
Basic earnings per share	$	0.50	$	0.49	$	1.51	$	1.51
Diluted earnings per share	$	0.50	$	0.49	$	1.51	$	1.51

The impact of anti-dilutive shares to the diluted earnings per share calculation was considered immaterial for the periods ended September 30, 2024 and 2023.

12

2. Business Combinations

Acquisition of Happy Bancshares, Inc.

The Company's most recent acquisition occurred on April 1, 2022, when the Company completed the acquisition of Happy Bancshares, Inc. (“Happy”), and merged Happy State Bank into Centennial Bank. For additional discussion regarding the acquisition of Happy, see "Management's Discussion and Analysis of Financial Condition and Results of Operations" and Note 2 "Business Combinations" in the Notes to Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2023.

3. Investment Securities

The following table summarizes the amortized cost and fair value of securities that are classified as available-for-sale and held-to-maturity:

	September 30, 2024
	Available-for-Sale
	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized (Losses)		Estimated Fair Value
	(In thousands)
U.S. government-sponsored enterprises	$	321,233	$	—	$	321,233	$	1,800	$	(11,248)	$	311,785
U.S. government-sponsored mortgage-backed securities	1,574,430		—		1,574,430		1,105		(150,070)		1,425,465
Private mortgage-backed securities	186,916		—		186,916		115		(9,090)		177,941
Non-government-sponsored asset backed securities	264,497		—		264,497		646		(2,945)		262,198
State and political subdivisions	966,644		—		966,644		1,094		(66,804)		900,934
Other securities	215,605		(2,195)		213,410		539		(21,652)		192,297
Total	$	3,529,325	$	(2,195)	$	3,527,130	$	5,299	$	(261,809)	$	3,270,620

	September 30, 2024
	Held-to-Maturity
	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized (Losses)		Estimated Fair Value
	(In thousands)
U.S. government-sponsored enterprises	$	43,490	$	—	$	43,490	$	—	$	(1,712)	$	41,778
U.S. government-sponsored mortgage-backed securities	125,920		—		125,920		754		(2,288)		124,386
State and political subdivisions	1,109,685		(2,005)		1,107,680		197		(79,586)		1,028,291
Total	$	1,279,095	$	(2,005)	$	1,277,090	$	951	$	(83,586)	$	1,194,455

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	December 31, 2023
	Available-for-Sale
	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized (Losses)		Estimated Fair Value
	(In thousands)
U.S. government-sponsored enterprises	$	361,494	$	—	$	361,494	$	2,247	$	(17,093)	$	346,648
U.S. government-sponsored mortgage-backed securities	1,711,668		—		1,711,668		310		(191,557)		1,520,421
Private mortgage-backed securities	191,522		—		191,522		—		(16,117)		175,405
Non-government-sponsored asset backed securities	370,203				370,203		821		(7,551)		363,473
State and political subdivisions	990,318		—		990,318		1,938		(75,931)		916,325
Other securities	215,722		(2,525)		213,197		402		(28,030)		185,569
Total	$	3,840,927	$	(2,525)	$	3,838,402	$	5,718	$	(336,279)	$	3,507,841

	December 31, 2023
	Held-to-Maturity
	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized (Losses)		Estimated Fair Value
	(In thousands)
U.S. government-sponsored enterprises	$	43,285	$	—	$	43,285	$	—	$	(2,607)	$	40,678
U.S. government-sponsored mortgage-backed securities	130,278		—		130,278		106		(4,362)		126,022
State and political subdivisions	1,110,424		(2,005)		1,108,419		456		(105,094)		1,003,781
Total	$	1,283,987	$	(2,005)	$	1,281,982	$	562	$	(112,063)	$	1,170,481

Assets, principally investment securities, having a carrying value of approximately $2.37 billion and $3.57 billion at September 30, 2024 and December 31, 2023, respectively, were pledged to secure public deposits, as collateral for repurchase agreements, and for other purposes required or permitted by law. Investment securities pledged as collateral for repurchase agreements totaled approximately $179.4 million and $142.1 million at September 30, 2024 and December 31, 2023, respectively.

The amortized cost and estimated fair value of securities classified as available-for-sale and held-to-maturity at September 30, 2024, by contractual maturity, are shown below. Expected maturities could differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.

	Available-for-Sale				Held-to-Maturity
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
	(In thousands)
Due in one year or less	$	29,837	$	29,449	$	—	$	—
Due after one year through five years	256,357		245,060		43,548		42,380
Due after five years through ten years	377,774		346,905		341,352		321,196
Due after ten years	839,514		783,602		768,275		706,493
U.S. government-sponsored mortgage-backed securities	1,574,430		1,425,465		125,920		124,386
Private mortgage-backed securities	186,916		177,941		—		—
Non-government-sponsored asset backed securities	264,497		262,198		—		—
Total	$	3,529,325	$	3,270,620	$	1,279,095	$	1,194,455

During the three and nine months ended September 30, 2024 and 2023, no available-for-sale securities were sold.

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The following table shows gross unrealized losses and estimated fair value of investment securities classified as available-for-sale and held-to-maturity, aggregated by investment category and length of time that individual investment securities have been in a continuous loss position as of September 30, 2024 and December 31, 2023.

	September 30, 2024
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
Available-for-sale:
U.S. government-sponsored enterprises	$	18,911	$	(132)	$	171,503	$	(11,116)	$	190,414	$	(11,248)
U.S. government-sponsored mortgage-backed securities	2,314		(23)		1,322,911		(150,047)		1,325,225		(150,070)
Private mortgage-backed securities	—		—		168,230		(9,090)		168,230		(9,090)
Non-government-sponsored asset backed securities	—		—		106,450		(2,945)		106,450		(2,945)
State and political subdivisions	22,859		(504)		771,340		(66,300)		794,199		(66,804)
Other securities	6,976		(1,079)		171,574		(20,573)		178,550		(21,652)
Total	$	51,060	$	(1,738)	$	2,712,008	$	(260,071)	$	2,763,068	$	(261,809)
Held-to-maturity:
U.S. government-sponsored enterprises	$	—	$	—	$	41,779	$	(1,712)	$	41,779	$	(1,712)
U.S. government-sponsored mortgage-backed securities	—		—		72,591		(2,288)		72,591		(2,288)
State and political subdivisions	22,950		(483)		994,010		(79,103)		1,016,960		(79,586)
Total	$	22,950	$	(483)	$	1,108,380	$	(83,103)	$	1,131,330	$	(83,586)

	December 31, 2023
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
Available-for-sale:
U.S. government-sponsored enterprises	$	2,742	$	(2)	$	180,569	$	(17,091)	$	183,311	$	(17,093)
U.S. government-sponsored mortgage-backed securities	102,831		(2,166)		1,392,318		(189,391)		1,495,149		(191,557)
Private mortgage-backed securities	9,298		(226)		166,107		(15,891)		175,405		(16,117)
Non-government-sponsored asset backed securities	—		—		213,838		(7,551)		213,838		(7,551)
State and political subdivisions	28,596		(400)		769,860		(75,531)		798,456		(75,931)
Other securities	—		—		164,430		(28,030)		164,430		(28,030)
Total	$	143,467	$	(2,794)	$	2,887,122	$	(333,485)	$	3,030,589	$	(336,279)
Held-to-maturity:
U.S. government-sponsored enterprises	$	—	$	—	$	40,677	$	(2,607)	$	40,677	$	(2,607)
U.S. government-sponsored mortgage-backed securities	48,498		(861)		65,573		(3,501)		114,071		(4,362)
State and political subdivisions	21,493		(297)		956,578		(104,797)		978,071		(105,094)
Total	$	69,991	$	(1,158)	$	1,062,828	$	(110,905)	$	1,132,819	$	(112,063)

Debt securities available-for-sale ("AFS") are reported at fair value with unrealized holding gains and losses reported as a separate component of stockholders’ equity and other comprehensive income (loss), net of taxes. Securities that are held as available-for-sale are used as a part of our asset/liability management strategy. Securities that may be sold in response to interest rate changes, changes in prepayment risk, the need to increase regulatory capital, and other similar factors are classified as available-for-sale. The Company evaluates all securities quarterly to determine if any securities in a loss position require a provision for credit losses. The Company first assesses whether it intends to sell or is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For securities that do not meet these criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, and changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows

15

expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. The Company has made the election to exclude accrued interest receivable on AFS securities from the estimate of credit losses and report accrued interest separately on the consolidated balance sheets. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectability of a security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

Debt securities held-to-maturity ("HTM"), which include any security for which we have the positive intent and ability to hold until maturity, are reported at historical cost adjusted for amortization of premiums and accretion of discounts. Premiums and discounts are amortized/accreted to the call date to interest income using the constant effective yield method over the estimated life of the security. The Company evaluates all securities quarterly to determine if any securities in a loss position require a provision for credit losses. The Company measures expected credit losses on HTM securities on a collective basis by major security type, with each type sharing similar risk characteristics. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The Company has made the election to exclude accrued interest receivable on HTM securities from the estimate of credit losses and report accrued interest separately on the consolidated balance sheets. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectability of a security is confirmed.

During the quarter ended September 30, 2024, the Company recovered $330,000 in AFS reserves due to an improvement in the unrealized loss position of one of the Company's subordinated debt investments. For both the three and nine month periods ended September 30, 2024, the Company determined the $2.0 million allowance for credit losses on the held-to-maturity portfolio was adequate. Therefore, no additional provision was considered necessary for the HTM portfolio.

Available-for-Sale Investment Securities
	September 30, 2024		December 31, 2023
Allowance for credit losses:	(In thousands)
Beginning balance	$	2,525	$	842
(Recovery of) provision for credit loss	(330)		1,683
Balance, September 30	$	2,195	$	2,525
Provision for credit loss			—
Balance, December 31, 2023			$	2,525

Held-to-Maturity Investment Securities
	September 30, 2024		December 31, 2023
Allowance for credit losses:	(In thousands)
Beginning balance	$	2,005	$	2,005
Provision for credit loss	—		—
Balance, September 30	$	2,005	$	2,005
Provision for credit loss			—
Balance, December 31, 2023			$	2,005

For the nine months ended September 30, 2024, the Company had available-for-sale investment securities with approximately $261.8 million in unrealized losses, of which $260.1 million had been in continuous loss positions for more than twelve months. With the exception of the subordinated debt investment securities which were downgraded during 2023 resulting in the allowance, the Company’s assessments indicated the cause of the market depreciation was primarily due to the change in interest rates and not the issuer’s financial condition or downgrades by rating agencies. In addition, approximately 38.6% of the principal balance from the Company’s investment portfolio will mature or are expected to pay down within five years or less. As a result, the Company has the ability and intent to hold such securities until maturity.

16

As of September 30, 2024, the Company's available-for-sale securities portfolio consisted of 1,550 investment securities, 1,256 of which were in an unrealized loss position. As noted in the table above, the total amount of the unrealized loss was $261.8 million. The U.S. government-sponsored enterprises portfolio contained unrealized losses of $11.2 million on 54 securities. The U.S. government-sponsored mortgage-backed securities portfolio contained $150.1 million of unrealized losses on 645 securities, and the private mortgage-backed securities portfolio contained $9.1 million of unrealized losses on 31 securities. The non-government-sponsored asset backed securities portfolio contained $2.9 million of unrealized losses on 24 securities. The state and political subdivisions portfolio contained $66.8 million of unrealized losses on 439 securities. In addition, the other securities portfolio contained $21.7 million of unrealized losses on 63 securities. With the exception of the investments for which an allowance for credit losses has been established, the unrealized losses on the Company's investments were primarily a result of interest rate changes, and the Company expects to recover the amortized cost basis over the term of the securities. The Company has determined that, as of September 30, 2024, an additional provision for credit losses is not necessary because the decline in market value was attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity.

As of September 30, 2024, the Company's held-to-maturity securities portfolio consisted of 510 investment securities, 488 of which were in an unrealized loss position. As noted in the table above, the total amount of the unrealized loss was $83.6 million. The U.S. government-sponsored enterprises portfolio contained unrealized losses of $1.7 million on 5 securities. The U.S. government-sponsored mortgage-backed securities portfolio contained unrealized losses of $2.3 million on 12 securities. The state and political subdivisions portfolio contained $79.6 million of unrealized losses on 471 securities. The unrealized losses on the Company's investments were a result of interest rate changes. The Company expects to recover the amortized cost basis over the term of the securities. Because the decline in market value was attributable to changes in interest rates and not credit quality, the Company has determined that an additional provision for credit losses was not necessary as of September 30, 2024.

The following table summarizes bond ratings for the Company’s held-to-maturity portfolio, based upon amortized cost, issued by state and political subdivisions and other securities as of September 30, 2024:

	State and political subdivisions		U.S. government-sponsored enterprises		U.S. government-sponsored mortgage-backed securities		Total
	(In thousands)
Aaa/AAA	$	238,872	$	43,490	$	—	$	282,362
Aa/AA	845,788		—		—		845,788
A	23,200		—		—		23,200
Not rated	1,825		—		—		1,825
Agency Backed	—		—		125,920		125,920
Total	$	1,109,685	$	43,490	$	125,920	$	1,279,095

Income earned on securities for the three months ended September 30, 2024 and 2023, is as follows:

	Three Months Ended September 30,				For the Nine Months Ended September 30,
	2024		2023		2024		2023
	(In thousands)
Taxable
Available-for-sale	$	23,550	$	27,028	$	74,439	$	82,080
Held-to-maturity	7,456		7,492		22,383		22,479
Non-taxable
Available-for-sale	4,612		4,746		13,971		14,369
Held-to-maturity	3,092		3,122		9,305		9,394
Total	$	38,710	$	42,388	$	120,098	$	128,322

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4. Loans Receivable

The various categories of loans receivable are summarized as follows:

	September 30, 2024		December 31, 2023
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	5,496,536	$	5,549,954
Construction/land development	2,741,419		2,293,047
Agricultural	335,965		325,156
Residential real estate loans
Residential 1-4 family	1,932,352		1,844,260
Multifamily residential	482,648		435,736
Total real estate	10,988,920		10,448,153
Consumer	1,219,197		1,153,690
Commercial and industrial	2,084,667		2,324,991
Agricultural	352,963		307,327
Other	178,232		190,567
Total loans receivable	14,823,979		14,424,728
Allowance for credit losses	(312,574)		(288,234)
Loans receivable, net	$	14,511,405	$	14,136,494

During the three months ended September 30, 2024, the Company sold $1.8 million of the guaranteed portions of certain SBA loans, which resulted in a gain of approximately $145,000. During the nine months ended September 30, 2024, the Company sold $5.1 million of the guaranteed portions of certain SBA loans, which resulted in a gain of approximately $399,000. During the three months ended September 30, 2023, the Company sold $1.0 million guaranteed portions of certain SBA loans, which resulted in a gain of approximately $97,000. During the nine months ended September 30, 2023, the Company sold $3.2 million guaranteed portions of certain SBA loans, which resulted in a gain of approximately $236,000.

Mortgage loans held for sale of approximately $92.0 million and $123.4 million at September 30, 2024 and December 31, 2023, respectively, are included in residential 1-4 family loans. Mortgage loans held for sale are carried at the lower of cost or fair value, determined using an aggregate basis. Gains and losses resulting from sales of mortgage loans are recognized when the respective loans are sold to investors. Gains and losses are determined by the difference between the selling price and the carrying amount of the loans sold, net of discounts collected or paid. The Company obtains forward commitments to sell mortgage loans to reduce market risk on mortgage loans in the process of origination and mortgage loans held for sale. The forward commitments acquired by the Company for mortgage loans in process of origination are considered mandatory forward commitments. Because these commitments are structured on a mandatory basis, the Company is required to substitute another loan or to buy back the commitment if the original loan does not fund. The Company regularly sells mortgages into the capital markets to mitigate the effects of interest rate volatility during the period from the time an interest rate lock commitment (“IRLC”) is issued until the IRLC funds creating a mortgage loan held for sale and its subsequent sale into the secondary/capital markets. Loan sales are typically executed on a mandatory basis. Under a mandatory commitment, the Company agrees to deliver a specified dollar amount with predetermined terms by a certain date. Generally, the commitment is not loan specific, and any combination of loans can be delivered into the outstanding commitment provided the terms fall within the parameters of the commitment. Upon failure to deliver, the Company is subject to fees based on market movement. These commitments and IRLCs are derivative instruments and their fair values at September 30, 2024 and December 31, 2023 were not material.

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Purchased loans that have experienced more than insignificant credit deterioration since origination are PCD loans. An allowance for credit losses is determined using the same methodology as other loans. The Company develops separate PCD models for each loan segment with PCD loans not individually analyzed for credit losses. The initial allowance for credit losses determined on a collective basis is allocated to individual loans. The sum of the loan’s purchase price and allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a non-credit discount or premium which is amortized into interest income over the life of the loan. Subsequent changes to the allowance for credit losses are recorded through the provision for credit losses. The Company held approximately $79.6 million and $130.7 million in PCD loans, as of September 30, 2024 and December 31, 2023, respectively. The balance, as of September 30, 2024, results entirely from the acquisition of Happy.

A description of our accounting policies for loans and impaired loans (which includes loans individually analyzed for credit losses for which a specific reserve has been recorded, non-accrual loans, loans past due 90 days or more and restructured loans made to borrowers experiencing financial difficulty) are set forth in our 2023 Form 10-K filed with the SEC on February 26, 2024.

5. Allowance for Credit Losses, Credit Quality and Other

The Company uses the discounted cash flow (“DCF”) method to estimate expected losses for all of the Company’s loan pools. These pools are as follows: construction & land development; other commercial real estate; residential real estate; commercial & industrial; and consumer & other. The loan portfolio pools were selected in order to generally align with the loan categories specified in the quarterly call reports required to be filed with the Federal Financial Institutions Examination Council. For each of these loan pools, the Company generates cash flow projections at the instrument level wherein payment expectations are adjusted for estimated prepayment speed, curtailments, time to recovery, probability of default, and loss given default. The modeling of expected prepayment speeds, curtailment rates, and time to recovery are based on historical internal data. The Company uses regression analysis of historical internal and peer data to determine suitable loss drivers to utilize when modeling lifetime probability of default and loss given default. This analysis also determines how expected probability of default and loss given default will react to forecasted levels of the loss drivers.

Management qualitatively adjusts model results for risk factors ("Q-Factors") that are not considered within our modeling processes but are, nonetheless, relevant in assessing the expected credit losses within our loan pools. These Q-Factors and other qualitative adjustments may increase or decrease management's estimate of expected credit losses by a calculated percentage or amount based upon the estimated level of risk. The various risks that may be considered in making Q-Factor and other qualitative adjustments include, among other things, the impact of (i) changes in lending policies, procedures and strategies; (ii) changes in nature and volume of the portfolio; (iii) staff experience; (iv) changes in volume and trends in classified loans, delinquencies and nonaccruals; (v) concentration risk; (vi) trends in underlying collateral values; (vii) external factors such as competition, legal and regulatory environment; (viii) changes in the quality of the loan review system; and (ix) economic conditions.

Each year management evaluates the performance of the selected models used in the CECL calculation through backtesting. Based on the results of the testing, management determines if the various models produced accurate results compared to the actual losses incurred for the current economic environment. Management then determines if changes to the input assumptions and economic factors would produce a stronger overall calculation that is more responsive to changes in economic conditions. The Company continues to use regression analysis to determine suitable loss drivers to utilize when modeling lifetime probability of default and loss given default for the changes in the economic factors for the loss driver segments. Based on this analysis, management determined that changes to several of the economic factors for the loss driver segments, along with other model improvements and updates, were necessary, and updated models were implemented beginning with the June 30, 2024 allowance for credit losses calculation. The identified loss drivers by segment are included below as of both September 30, 2024 and December 31, 2023.

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September 30, 2024
Loss Driver Segment	Call Report Segment(s)	Modeled Economic Factors
1-4 Family Construction	1a1	National Unemployment (%) & Housing Price Index (%)
All Other Construction	1a2	National Unemployment (%) & Gross Domestic Product (%)
Farmland & Agriculture	1b, 3	National Unemployment (%)
Residential 1-4 Family	1c1, 1c2a, 1c2b	National Unemployment (%) & Housing Price Index (%)
Multifamily	1d	Rental Vacancy Rate (%) & Housing Price Index (%)
Non-Farm/ Non-Residential CRE	1e1, 1e2	National Unemployment (%) & Gross Domestic Product (%)
Commercial & Industrial, Non-Depository Financial Institutions, Purchase/Carry Securities, Leases, Other	4a, 9a, 9b1, 9b2, 10, Other	National Unemployment (%) & National Retail Sales (%)
Consumer Auto	6c	National Unemployment (%) & National Retail Sales (%)
Other Consumer	6b, 6d	National Unemployment (%) & National Retail Sales (%)
Other Consumer - SPF	6d	National Unemployment (%)
Obligations of States and Political Subdivisions	8	National Unemployment (%) & Gross Domestic Product (%)

December 31, 2023
Loss Driver Segment	Call Report Segment(s)	Modeled Economic Factors
1-4 Family Construction	1a1	National Unemployment (%) & Housing Price Index (%)
All Other Construction	1a2	National Unemployment (%) & Gross Domestic Product (%)
1-4 Family Revolving HELOC & Junior Liens	1c1	National Unemployment (%) & Housing Price Index – CoreLogic (%)
1-4 Family Revolving HELOC & Junior Liens	1c2b	National Unemployment (%) & Gross Domestic Product (%)
1-4 Family Senior Liens	1c2a	National Unemployment (%) & Gross Domestic Product (%)
Multifamily	1d	Rental Vacancy Rate (%) & Housing Price Index – Case-Schiller (%)
Owner Occupied CRE	1e1	National Unemployment (%) & Gross Domestic Product (%)
Non-Owner Occupied CRE	1e2,1b,8	National Unemployment (%) & Gross Domestic Product (%)
Commercial & Industrial, Agricultural, Non-Depository Financial Institutions, Purchase/Carry Securities, Other	4a, 3, 9a, 9b1, 9b2, 10, Other	National Unemployment (%) & National Retail Sales (%)
Consumer Auto	6c	National Unemployment (%) & National Retail Sales (%)
Other Consumer	6b, 6d	National Unemployment (%) & National Retail Sales (%)
Other Consumer - SPF	6d	National Unemployment (%)

For all DCF models, management has determined that four quarters represents a reasonable and supportable forecast period and reverts to a historical loss rate over four quarters on a straight-line basis. Management leverages economic projections from a reputable and independent third party to inform its loss driver forecasts over the four-quarter forecast period. Other internal and external indicators of economic forecasts are also considered by management when developing the forecast metrics.

The combination of adjustments for credit expectations (default and loss) and time expectations (prepayment, curtailment, and time to recovery) produces an expected cash flow stream at the instrument level. Instrument effective yield is calculated, net of the impacts of prepayment assumptions, and the instrument expected cash flows are then discounted at that effective yield to produce an instrument-level net present value of expected cash flows (“NPV”). An allowance for credit loss is established for the difference between the instrument’s NPV and amortized cost basis.

Construction/Land Development and Other Commercial Real Estate Loans. We originate non-farm and non-residential loans (primarily secured by commercial real estate), construction/land development loans, and agricultural loans, which are generally secured by real estate located in our market areas. Our commercial mortgage loans are generally collateralized by first liens on real estate and amortized (where defined) over a 15 to 30 year period with balloon payments due at the end of one to five years. These loans are generally underwritten by assessing cash flow (debt service coverage), primary and secondary source of repayment, the financial strength of any guarantor, the strength of the tenant (if any), the borrower’s liquidity and leverage, management experience, ownership structure, economic conditions and industry specific trends and collateral. Generally, we will loan up to 85% of the value of improved property, 65% of the value of raw land and 75% of the value of land to be acquired and developed. A first lien on the property and assignment of lease is required if the collateral is rental property, with second lien positions considered on a case-by-case basis.

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Residential Real Estate Loans. We originate one to four family, residential mortgage loans generally secured by property located in our primary market areas. Residential real estate loans generally have a loan-to-value ratio of up to 90%. These loans are underwritten by giving consideration to many factors including the borrower’s ability to pay, stability of employment or source of income, debt-to-income ratio, credit history and loan-to-value ratio.

Commercial and Industrial Loans. Commercial and industrial loans are made for a variety of business purposes, including working capital, inventory, equipment and capital expansion. The terms for commercial loans are generally one to seven years. Commercial loan applications must be supported by current financial information on the borrower and, where appropriate, by adequate collateral. Commercial loans are generally underwritten by addressing cash flow (debt service coverage), primary and secondary sources of repayment, the financial strength of any guarantor, the borrower’s liquidity and leverage, management experience, ownership structure, economic conditions and industry specific trends and collateral. The loan to value ratio depends on the type of collateral. Generally, accounts receivable are financed at between 50% and 80% of accounts receivable less than 60 days past due. Inventory financing will range between 50% and 80% (with no work in process) depending on the borrower and nature of inventory. We require a first lien position for those loans.

Consumer & Other Loans. Our consumer & other loans are primarily composed of loans to finance USCG registered high-end sail and power boats. The performance of consumer & other loans will be affected by the local and regional economies as well as the rates of personal bankruptcies, job loss, divorce and other individual-specific characteristics.

Off-Balance Sheet Credit Exposures. The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit loss on off-balance sheet credit exposures is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The Company uses the DCF method to estimate expected losses for all of the Company’s off-balance sheet credit exposures through the use of the existing DCF models for the Company’s loan portfolio pools. The off-balance sheet credit exposures exhibit similar risk characteristics as loans currently in the Company’s loan portfolio.

During the three and nine months ended September 30, 2024, the Company recorded $18.2 million and $31.7 million in provision for credit losses on loans, respectively. $16.7 million of the provision for credit losses recorded during 2024 was used to establish a hurricane reserve for loans located in the Federal Emergency Management Agency ("FEMA") disaster areas impacted by Hurricane Helene, which made landfall during the third quarter of 2024. In addition, during the three months ended September 30, 2024, the Company recorded $1.0 million in provision for unfunded commitments, which completely offset the $1.0 million recovery of credit losses on unfunded commitments that was recorded during the first quarter of 2024. During the three and nine months ended September 30, 2023, the Company recorded $2.8 million and $6.3 million in provision for credit losses on loans, respectively. For the three and nine months ended September 30, 2023, the Company recovered $1.5 million in credit losses on unfunded commitments.

The following table presents the activity in the allowance for credit losses for the three and nine months ended September 30, 2024:

	Three Months Ended September 30, 2024
	Construction/ Land Development		Other Commercial Real Estate		Residential Real Estate		Commercial & Industrial		Consumer & Other		Total
	(In thousands)
Allowance for credit losses:
Beginning balance	$	58,673	$	86,842	$	51,354	$	69,635	$	29,352	$	295,856
Loans charged off	—		—		(42)		(741)		(1,218)		(2,001)
Recoveries of loans previously charged off	7		34		54		143		281		519
Net loans recovered (charged off)	7		34		12		(598)		(937)		(1,482)
Provision for credit losses	4,718		9,799		8,059		(8,434)		4,058		18,200
Balance, September 30	$	63,398	$	96,675	$	59,425	$	60,603	$	32,473	$	312,574

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	Nine Months Ended September 30, 2024
	Construction/ Land Development		Other Commercial Real Estate		Residential Real Estate		Commercial & Industrial		Consumer & Other		Total
	(In thousands)
Allowance for credit losses:
Beginning balance	$	33,877	$	78,635	$	55,860	$	92,810	$	27,052	$	288,234
Loans charged off	(81)		(1,164)		(260)		(4,500)		(3,072)		(9,077)
Recoveries of loans previously charged off	96		59		149		503		910		1,717
Net loans recovered (charged off)	15		(1,105)		(111)		(3,997)		(2,162)		(7,360)
Provision for credit losses	29,506		19,145		3,676		(28,210)		7,583		31,700
Balance, September 30	$	63,398	$	96,675	$	59,425	$	60,603	$	32,473	$	312,574

During the second quarter of 2024, the Company implemented updated allowance for credit loss models as part of the annual model review and challenge process. In light of the current commercial real estate ("CRE") environment, the allowance calculation called for a higher level of reserves for the CRE portfolio and a corresponding reduction in reserves for the commercial and industrial portfolio.

The following table presents the activity in the allowance for credit losses for the three and nine months ended September 30, 2023 and the year ended December 31, 2023:

	Three Months Ended September 30, 2023
	Construction/ Land Development		Other Commercial Real Estate		Residential Real Estate		Commercial & Industrial		Consumer & Other		Total
	(In thousands)
Allowance for credit losses:
Beginning balance	$	32,275	$	85,158	$	51,732	$	90,474	$	26,044	$	285,683
Loans charged off	(150)		(1,950)		(103)		(183)		(1,063)		(3,449)
Recoveries of loans previously charged off	33		25		22		119		329		528
Net loans recovered (charged off)	(117)		(1,925)		(81)		(64)		(734)		(2,921)
Provision for credit losses	484		(4,680)		3,233		2,059		1,704		2,800
Balance, September 30	$	32,642	$	78,553	$	54,884	$	92,469	$	27,014	$	285,562

	Nine Months Ended September 30, 2023 and Year Ended December 31, 2023
	Construction/ Land Development		Other Commercial Real Estate		Residential Real Estate		Commercial & Industrial		Consumer & Other		Total
	(In thousands)
Allowance for credit losses:
Beginning balance	$	32,243	$	93,848	$	50,963	$	89,354	$	23,261	$	289,669
Loans charged off	(175)		(2,023)		(192)		(7,015)		(3,058)		(12,463)
Recoveries of loans previously charged off	103		517		161		375		900		2,056
Net loans (charged off) recovered	(72)		(1,506)		(31)		(6,640)		(2,158)		(10,407)
Provision for credit loss - loans	471		(13,789)		3,952		9,755		5,911		6,300
Balance, September 30	32,642		78,553		54,884		92,469		27,014		285,562
Loans charged off	(88)		(312)		(77)		(2,142)		(973)		(3,592)
Recoveries of loans previously charged off	10		16		168		208		212		614
Net loans (charged off) recovered	(78)		(296)		91		(1,934)		(761)		(2,978)
Provision for credit loss - loans	1,313		378		885		2,275		799		5,650
Balance, December 31	$	33,877	$	78,635	$	55,860	$	92,810	$	27,052	$	288,234

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The following table presents the amortized cost basis of loans on nonaccrual status and loans past due over 90 days still accruing as of September 30, 2024 and December 31, 2023:

	September 30, 2024
	Nonaccrual		Nonaccrual with Reserve		Loans Past Due Over 90 Days Still Accruing
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	48,086	$	42,025	$	709
Construction/land development	5,403		—		657
Agricultural	737		—		—
Residential real estate loans
Residential 1-4 family	23,905		—		1,495
Multifamily residential	592		—		—
Total real estate	78,723		42,025		2,861
Consumer	7,501		2,340		28
Commercial and industrial	8,511		2,162		2,405
Agricultural & other	1,012		—		62
Total	$	95,747	$	46,527	$	5,356

	December 31, 2023
	Nonaccrual		Nonaccrual with Reserve		Loans Past Due Over 90 Days Still Accruing
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	13,178	$	—	$	2,177
Construction/land development	12,094		—		255
Agricultural	431		—		—
Residential real estate loans
Residential 1-4 family	20,351		—		84
Total real estate	46,054		—		2,516
Consumer	3,423		—		79
Commercial and industrial	9,982		2,534		1,535
Agricultural & other	512		—		—
Total	$	59,971	$	2,534	$	4,130

The Company had $95.7 million and $60.0 million in nonaccrual loans for the periods ended September 30, 2024 and December 31, 2023, respectively. In addition, the Company had $5.4 million and $4.1 million in loans past due 90 days or more and still accruing for the periods ended September 30, 2024 and December 31, 2023, respectively.

The Company had $46.5 million and $2.5 million in nonaccrual loans with a specific reserve as of September 30, 2024 and December 31, 2023, respectively. Interest income recognized on the non-accrual loans for the periods ended September 30, 2024 and September 30, 2023 was considered immaterial.

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The following table presents the amortized cost basis of impaired loans (which includes loans individually analyzed for credit losses for which a specific reserve has been recorded, non-accrual loans, loans past due 90 days or more and restructured loans made to borrowers experiencing financial difficulty) by class of loans as of September 30, 2024 and December 31, 2023:

	September 30, 2024
	Commercial Real Estate		Residential Real Estate		Other
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	54,382	$	—	$	—
Construction/land development	6,060		—		—
Agricultural	737		—		—
Residential real estate loans
Residential 1-4 family	—		26,695		—
Multifamily residential	—		21,494		—
Total real estate	61,179		48,189		—
Consumer	—		—		10,527
Commercial and industrial	—		—		13,157
Agricultural & other	—		—		1,074
Total	$	61,179	$	48,189	$	24,758

	December 31, 2023
	Commercial Real Estate		Residential Real Estate		Other
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	39,813	$	—	$	—
Construction/land development	12,350		—		—
Agricultural	431		—		—
Residential real estate loans
Residential 1-4 family	—		21,386		—
Multifamily residential	—		—		—
Total real estate	52,594		21,386		—
Consumer	—		—		3,511
Commercial and industrial	—		—		16,890
Agricultural & other	—		—		512
Total	$	52,594	$	21,386	$	20,913

The Company had $134.1 million and $94.9 million in impaired loans for the periods ended September 30, 2024 and December 31, 2023, respectively.

Loans that do not share risk characteristics are evaluated on an individual basis. For these loans, where the Company has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the financial asset to be provided substantially through the operation or sale of the collateral, the allowance for credit losses is measured based on the difference between the fair value of the collateral, net of estimated costs to sell, and the amortized cost basis of the loan as of the measurement date. When repayment is expected to be from the operation of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the loan exceeds the present value of expected cash flows from the operation of the collateral. When repayment is expected to be from the sale of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the loan exceeds the fair value of the underlying collateral less

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estimated costs to sell. The allowance for credit losses may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the loan, net of estimated costs to sell.

The following is an aging analysis for loans receivable as of September 30, 2024 and December 31, 2023:

	September 30, 2024
	Loans Past Due 30-59 Days		Loans Past Due 60-89 Days		Loans Past Due 90 Days or More		Total Past Due		Current Loans		Total Loans Receivable		Accruing Loans Past Due 90 Days or More
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	4,391	$	837	$	48,795	$	54,023	$	5,442,513	$	5,496,536	$	709
Construction/land development	778		221		6,060		7,059		2,734,360		2,741,419		657
Agricultural	177		198		737		1,112		334,853		335,965		—
Residential real estate loans
Residential 1-4 family	2,329		6,698		25,400		34,427		1,897,925		1,932,352		1,495
Multifamily residential	20,902		—		592		21,494		461,154		482,648		—
Total real estate	28,577		7,954		81,584		118,115		10,870,805		10,988,920		2,861
Consumer	2,928		155		7,529		10,612		1,208,585		1,219,197		28
Commercial and industrial	1,071		567		10,916		12,554		2,072,113		2,084,667		2,405
Agricultural & other	1,120		91		1,074		2,285		528,910		531,195		62
Total	$	33,696	$	8,767	$	101,103	$	143,566	$	14,680,413	$	14,823,979	$	5,356

	December 31, 2023
	Loans Past Due 30-59 Days		Loans Past Due 60-89 Days		Loans Past Due 90 Days or More		Total Past Due		Current Loans		Total Loans Receivable		Accruing Loans Past Due 90 Days or More
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	8,124	$	416	$	15,355	$	23,895	$	5,526,059	$	5,549,954	$	2,177
Construction/land development	1,430		—		12,349		13,779		2,279,268		2,293,047		255
Agricultural	474		314		431		1,219		323,937		325,156		—
Residential real estate loans
Residential 1-4 family	4,346		1,423		20,435		26,204		1,818,056		1,844,260		84
Multifamily residential	—		—		—		—		435,736		435,736		—
Total real estate	14,374		2,153		48,570		65,097		10,383,056		10,448,153		2,516
Consumer	1,022		303		3,502		4,827		1,148,863		1,153,690		79
Commercial and industrial	2,089		3,378		11,517		16,984		2,308,007		2,324,991		1,535
Agricultural and other	1,074		113		512		1,699		496,195		497,894		—
Total	$	18,559	$	5,947	$	64,101	$	88,607	$	14,336,121	$	14,424,728	$	4,130

Non-accruing loans at September 30, 2024 and December 31, 2023 were $95.7 million and $60.0 million, respectively.

Interest recognized on impaired loans during the three and nine months ended September 30, 2024 was approximately $1.3 million and $3.7 million, respectively. Interest recognized on impaired loans during the three and nine months ended September 30, 2023 was approximately $347,000 and $1.0 million, respectively. The amount of interest recognized on impaired loans on the cash basis is not materially different than the accrual basis.

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Credit Quality Indicators. As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including trends related to (i) the risk rating of loans, (ii) the level of classified loans, (iii) net charge-offs, (iv) non-performing loans and (v) the general economic conditions in Arkansas, Florida, Texas, Alabama and New York.

The Company utilizes a risk rating matrix to assign a risk rating to each of its loans. Loans are rated on a scale from 1 to 8. Descriptions of the general characteristics of the 8 risk ratings are as follows:

•Risk rating 1 – Excellent. Loans in this category are to persons or entities of unquestionable financial strength, a highly liquid financial position, with collateral that is liquid and well margined. These borrowers have performed without question on past obligations, and the Bank expects their performance to continue. Internally generated cash flow covers current maturities of long-term debt by a substantial margin. Loans secured by bank certificates of deposit and savings accounts, with appropriate holds placed on the accounts, are to be rated in this category.

•Risk rating 2 – Good. These are loans to persons or entities with strong financial condition and above-average liquidity that have previously satisfactorily handled their obligations with the Bank. Collateral securing the Bank’s debt is margined in accordance with policy guidelines. Internally generated cash flow covers current maturities of long-term debt more than adequately. Unsecured loans to individuals supported by strong financial statements and on which repayment is satisfactory may be included in this classification.

•Risk rating 3 – Satisfactory. Loans to persons or entities with an average financial condition, adequate collateral margins, adequate cash flow to service long-term debt, and net worth comprised mainly of fixed assets are included in this category. These entities are minimally profitable now, with projections indicating continued profitability into the foreseeable future. Closely held corporations or businesses where a majority of the profits are withdrawn by the owners or paid in dividends are included in this rating category. Overall, these loans are basically sound.

•Risk rating 4 – Watch. Borrowers who have marginal cash flow, marginal profitability or have experienced an unprofitable year and a declining financial condition characterize these loans. The borrower has in the past satisfactorily handled debts with the Bank, but in recent months has either been late, delinquent in making payments, or made sporadic payments. While the Bank continues to be adequately secured, margins have decreased or are decreasing, despite the borrower’s continued satisfactory condition. Other characteristics of borrowers in this class include inadequate credit information, weakness of financial statement and repayment capacity, but with collateral that appears to limit exposure.

•Risk rating 5 – Other Loans Especially Mentioned (“OLEM”). A loan criticized as OLEM has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date. OLEM assets are not adversely classified and do not expose the institution to sufficient risk to warrant adverse classification.

•Risk rating 6 – Substandard. A loan classified as substandard is inadequately protected by the sound worth and paying capacity of the borrower or the collateral pledged. Loss potential, while existing in the aggregate amount of substandard loans, does not have to exist in individual assets.

•Risk rating 7 – Doubtful. A loan classified as doubtful has all the weaknesses inherent in a loan classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. These are poor quality loans in which neither the collateral, if any, nor the financial condition of the borrower presently ensure collectability in full in a reasonable period of time; in fact, there is permanent impairment in the collateral securing the loan.

•Risk rating 8 – Loss. Assets classified as loss are considered uncollectible and of such little value that the continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather, it is not practical or desirable to defer writing off this basically worthless asset, even though partial recovery may occur in the future. This classification is based upon current facts, not probabilities. Assets classified as loss should be charged-off in the period in which they became uncollectible.

The Company’s classified loans include loans in risk ratings 6, 7 and 8. Loans may be classified, but not considered collateral dependent, due to one of the following reasons: (1) The Company has established minimum dollar amount thresholds for credit loss testing. All loans over $2.0 million that are rated 5 – 8 are individually assessed for credit losses on a quarterly basis. Loans rated 5 – 8 that fall under the threshold amount are not individually tested for credit losses and therefore are not included in collateral dependent loans; (2) of the loans that are above the threshold amount and tested for credit losses after testing, some are considered to not be collateral dependent and are not included in collateral dependent loans.

26

Based on the most recent analysis performed, the risk category of loans by class of loans as of September 30, 2024 and December 31, 2023 is as follows:

	September 30, 2024
	Term Loans Amortized Cost Basis by Origination Year
	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	331	$	74	$	405
Risk rating 2	—		—		—		—		—		—		—		—
Risk rating 3	163,941		312,252		601,970		562,043		230,931		1,021,405		256,875		3,149,417
Risk rating 4	54,483		169,205		457,070		268,482		145,758		665,513		322,795		2,083,306
Risk rating 5	27		—		1,265		—		960		26,353		383		28,988
Risk rating 6	—		—		8,155		5,720		23,967		196,483		95		234,420
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total non-farm/non-residential	218,451		481,457		1,068,460		836,245		401,616		1,910,085		580,222		5,496,536
Construction/land development
Risk rating 1	$	—	$	—	$	—	$	10	$	—	$	—	$	—	$	10
Risk rating 2	—		136		—		—		—		165		37		338
Risk rating 3	535,815		411,289		424,306		84,734		41,633		62,671		65,049		1,625,497
Risk rating 4	131,982		189,494		466,044		79,663		9,720		24,720		205,071		1,106,694
Risk rating 5	—		623		1,431		—		—		—		—		2,054
Risk rating 6	—		73		2,559		1,909		299		933		981		6,754
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		72		—		—		—		72
Total construction/land development	667,797		601,615		894,340		166,388		51,652		88,489		271,138		2,741,419
Agricultural
Risk rating 1	$	700	$	—	$	1,462	$	—	$	—	$	—	$	—	$	2,162
Risk rating 2	278		241		—		1,853		—		—		—		2,372
Risk rating 3	35,210		34,159		32,111		15,598		21,231		44,924		31,107		214,340
Risk rating 4	13,118		10,178		27,185		19,868		10,503		26,221		5,214		112,287
Risk rating 5	—		—		—		—		—		571		—		571
Risk rating 6	—		—		—		1,621		1,084		1,335		193		4,233
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total agricultural	49,306		44,578		60,758		38,940		32,818		73,051		36,514		335,965
Total commercial real estate loans	$	935,554	$	1,127,650	$	2,023,558	$	1,041,573	$	486,086	$	2,071,625	$	887,874	$	8,573,920
Residential real estate loans
Residential 1-4 family
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	92	$	2	$	94
Risk rating 2	—		230		—		—		—		11		5		246
Risk rating 3	181,112		232,086		368,096		232,800		131,378		361,150		114,114		1,620,736
Risk rating 4	6,592		22,038		44,936		24,590		20,640		72,339		82,201		273,336
Risk rating 5	—		1,015		601		293		397		1,073		778		4,157
Risk rating 6	—		1,533		8,904		3,568		4,276		14,977		523		33,781
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		2		—		2
Total residential 1-4 family	187,704		256,902		422,537		261,251		156,691		449,644		197,623		1,932,352

27

	September 30, 2024
	Term Loans Amortized Cost Basis by Origination Year
	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Multifamily residential
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Risk rating 2	—		—		—		—		—		—		—		—
Risk rating 3	1,876		11,133		34,052		36,223		52,758		76,818		11,449		224,309
Risk rating 4	—		689		130,725		10,228		59,023		20,830		14,970		236,465
Risk rating 5	—		—		—		—		—		—		—		—
Risk rating 6	—		—		21,052		592		—		230		—		21,874
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total multifamily residential	1,876		11,822		185,829		47,043		111,781		97,878		26,419		482,648
Total real estate	$	1,125,134	$	1,396,374	$	2,631,924	$	1,349,867	$	754,558	$	2,619,147	$	1,111,916	$	10,988,920
Consumer
Risk rating 1	$	4,480	$	2,582	$	1,667	$	1,291	$	642	$	1,064	$	1,506	$	13,232
Risk rating 2	—		—		—		—		—		150		—		150
Risk rating 3	210,168		213,187		217,177		181,131		90,901		252,855		1,124		1,166,543
Risk rating 4	4,342		4,633		5,151		1,381		166		5,688		184		21,545
Risk rating 5	—		433		—		214		156		83		—		886
Risk rating 6	71		5,287		4,533		343		583		5,944		65		16,826
Risk rating 7	—		9		—		—		—		—		—		9
Risk rating 8	—		—		—		6		—		—		—		6
Total consumer	219,061		226,131		228,528		184,366		92,448		265,784		2,879		1,219,197
Commercial and industrial
Risk rating 1	$	3,402	$	1,207	$	793	$	651	$	219	$	21,338	$	10,740	$	38,350
Risk rating 2	48		132		1,074		185		5		19		2,142		3,605
Risk rating 3	72,780		511,791		239,265		62,304		42,767		210,038		205,363		1,344,308
Risk rating 4	57,244		34,109		29,322		29,917		8,695		66,115		308,873		534,275
Risk rating 5	—		86		485		4,526		33		—		1,305		6,435
Risk rating 6	38		12,082		68,479		13,365		34		13,526		50,159		157,683
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		1		—		—		1		9		—		11
Total commercial and industrial	133,512		559,408		339,418		110,948		51,754		311,045		578,582		2,084,667
Agricultural and other
Risk rating 1	$	643	$	378	$	222	$	16	$	105	$	—	$	782	$	2,146
Risk rating 2	537		304		28		—		—		—		2,447		3,316
Risk rating 3	45,944		51,932		39,142		27,332		24,600		32,955		106,271		328,176
Risk rating 4	30,475		4,469		8,446		6,964		388		15,305		127,762		193,809
Risk rating 5	1,915		—		312		—		61		543		5		2,836
Risk rating 6	—		4		—		46		59		683		120		912
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total agricultural and other	79,514		57,087		48,150		34,358		25,213		49,486		237,387		531,195
Total	$	1,557,221	$	2,239,000	$	3,248,020	$	1,679,539	$	923,973	$	3,245,462	$	1,930,764	$	14,823,979

28

	December 31, 2023
	Term Loans Amortized Cost Basis by Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential
Risk rating 1	$	—	$	—	$	—	$	—	$	232	$	116	$	55	$	403
Risk rating 2	—		—		—		—		111		—		—		111
Risk rating 3	305,742		584,860		568,413		243,177		216,746		934,111		440,414		3,293,463
Risk rating 4	83,089		557,540		242,217		224,378		149,258		590,864		95,360		1,942,706
Risk rating 5	—		—		10,000		—		14,095		42,694		758		67,547
Risk rating 6	—		8,198		9,958		23,743		24,380		179,350		95		245,724
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total non-farm/non-residential	388,831		1,150,598		830,588		491,298		404,822		1,747,135		536,682		5,549,954
Construction/land development
Risk rating 1	$	—	$	—	$	10	$	—	$	—	$	—	$	—	$	10
Risk rating 2	759		—		—		—		—		186		—		945
Risk rating 3	300,941		499,984		130,342		62,134		22,656		56,180		44,603		1,116,840
Risk rating 4	198,874		417,244		252,602		22,713		32,342		24,527		209,063		1,157,365
Risk rating 5	641		1,163		—		3,306		218		69		—		5,397
Risk rating 6	—		7,817		1,631		748		641		254		1,327		12,418
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		72		—		—		—		—		72
Total construction/land development	501,215		926,208		384,657		88,901		55,857		81,216		254,993		2,293,047
Agricultural
Risk rating 1	$	—	$	1,605	$	—	$	—	$	—	$	—	$	—	$	1,605
Risk rating 2	247		—		1,936		—		—		—		—		2,183
Risk rating 3	30,252		43,291		22,919		25,992		10,678		43,284		20,104		196,520
Risk rating 4	9,477		24,688		20,358		19,532		7,873		32,692		4,612		119,232
Risk rating 5	—		—		—		—		314		571		—		885
Risk rating 6	—		—		1,675		1,084		1,620		352		—		4,731
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total agricultural	39,976		69,584		46,888		46,608		20,485		76,899		24,716		325,156
Total commercial real estate loans	$	930,022	$	2,146,390	$	1,262,133	$	626,807	$	481,164	$	1,905,250	$	816,391	$	8,168,157
Residential real estate loans
Residential 1-4 family
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	144	$	2	$	146
Risk rating 2	259		—		—		—		—		20		1		280
Risk rating 3	246,462		366,149		241,985		145,339		93,751		324,569		122,950		1,541,205
Risk rating 4	14,992		37,444		55,406		21,240		13,313		67,084		62,356		271,835
Risk rating 5	—		243		246		479		831		1,343		40		3,182
Risk rating 6	71		5,361		2,926		4,064		3,432		10,567		1,189		27,610
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		2		—		2
Total residential 1-4 family	261,784		409,197		300,563		171,122		111,327		403,729		186,538		1,844,260

29

	December 31, 2023
	Term Loans Amortized Cost Basis by Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Multifamily residential
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Risk rating 2	—		—		—		—		—		—		—		—
Risk rating 3	3,314		9,827		37,755		44,407		31,436		53,068		6,537		186,344
Risk rating 4	669		77,185		69,546		64,295		8,116		18,490		7,822		246,123
Risk rating 5	—		—		—		—		—		3,006		—		3,006
Risk rating 6	—		—		—		—		263		—		—		263
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total multifamily residential	3,983		87,012		107,301		108,702		39,815		74,564		14,359		435,736
Total real estate	$	1,195,789	$	2,642,599	$	1,669,997	$	906,631	$	632,306	$	2,383,543	$	1,017,288	$	10,448,153
Consumer
Risk rating 1	$	5,195	$	2,952	$	2,002	$	839	$	355	$	1,114	$	1,580	$	14,037
Risk rating 2	—		—		—		—		126		54		—		180
Risk rating 3	240,897		245,543		211,312		108,009		108,063		191,220		1,264		1,106,308
Risk rating 4	9,597		7,534		2,479		69		109		6,073		214		26,075
Risk rating 5	22		—		22		483		872		261		—		1,660
Risk rating 6	204		1,559		830		581		881		1,349		11		5,415
Risk rating 7	15		—		—		—		—		—		—		15
Risk rating 8	—		—		—		—		—		—		—		—
Total consumer	255,930		257,588		216,645		109,981		110,406		200,071		3,069		1,153,690
Commercial and industrial
Risk rating 1	$	3,757	$	918	$	1,120	$	236	$	121	$	20,835	$	12,644	$	39,631
Risk rating 2	174		1,293		220		12		164		218		963		3,044
Risk rating 3	487,896		272,608		78,507		50,340		77,761		170,610		227,043		1,364,765
Risk rating 4	115,025		34,474		55,812		33,000		27,189		71,854		378,417		715,771
Risk rating 5	21		547		16,318		3,352		201		980		1,767		23,186
Risk rating 6	12,498		75,536		4,942		1,154		9,086		12,180		63,198		178,594
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total commercial and industrial	619,371		385,376		156,919		88,094		114,522		276,677		684,032		2,324,991
Agricultural and other
Risk rating 1	$	408	$	131	$	16	$	105	$	—	$	2	$	563	$	1,225
Risk rating 2	396		28		1		—		1,181		100		693		2,399
Risk rating 3	52,758		45,796		31,378		26,918		3,059		43,984		145,419		349,312
Risk rating 4	14,007		7,663		8,025		955		10,955		3,188		94,186		138,979
Risk rating 5	—		2,286		—		134		—		593		665		3,678
Risk rating 6	71		33		63		108		—		370		1,656		2,301
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total agricultural and other	67,640		55,937		39,483		28,220		15,195		48,237		243,182		497,894
Total	$	2,138,730	$	3,341,500	$	2,083,044	$	1,132,926	$	872,429	$	2,908,528	$	1,947,571	$	14,424,728

30

The following table presents gross write-offs by origination date as of September 30, 2024 and December 31, 2023.

	September 30, 2024
	Gross Loan Write-Offs by Origination Year
	2024			2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Real estate
Commercial real estate loans
Non-farm/non-residential	$	—		$	—	$	—	$	780	$	1	$	383	$	—	$	1,164
Construction/land development	—			—		—		48		33		—		—		81
Agricultural	—			—		—		—		—		—		—		—
Residential real estate loans
Residential 1-4 family	—			1		100		1		26		132		—		260
Total real estate	—			1		100		829		60		515		—		1,505
Consumer	4			86		75		40		109		485		—		799
Commercial and industrial	—			557		89		292		108		199		3,255		4,500
Agricultural & other	2,202		*	71		—		—		—		—		—		2,273
Total	$	2,206		$	715	$	264	$	1,161	$	277	$	1,199	$	3,255	$	9,077

*The 2024 write-off consists entirely of overdrafts.

	December 31, 2023
	Gross Loan Write-Offs by Origination Year
	2023			2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Real estate
Commercial real estate loans
Non-farm/non-residential	$	—		$	—	$	—	$	—	$	1,826	$	502	$	—	$	2,328
Construction/land development	—			2		168		5		—		88		—		263
Agricultural	—			—		—		—		1		6		—		7
Residential real estate loans
Residential 1-4 family	—			29		28		73		13		126		—		269
Total real estate	—			31		196		78		1,840		722		—		2,867
Consumer	—			51		44		98		63		263		25		544
Commercial and industrial	—			407		1,110		894		911		5,369		466		9,157
Agricultural & other	3,252		**	1		1		2		64		3		164		3,487
Total	$	3,252		$	490	$	1,351	$	1,072	$	2,878	$	6,357	$	655	$	16,055

**The 2023 write-offs consist entirely of overdrafts.

31

The Company considers the performance of the loan portfolio and its impact on the allowance for credit losses. The Company also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following tables present the amortized cost of performing and nonperforming loans as of September 30, 2024 and December 31, 2023.

	September 30, 2024
	Term Loans Amortized Cost Basis by Origination Year
	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential
Performing	$	218,451	$	481,457	$	1,068,305	$	835,292	$	387,389	$	1,871,118	$	580,142	$	5,442,154
Non-performing	—		—		155		953		14,227		38,967		80		54,382
Total non-farm/non-residential	218,451		481,457		1,068,460		836,245		401,616		1,910,085		580,222		5,496,536
Construction/land development
Performing	$	667,797	$	601,542	$	891,810	$	164,990	$	51,470	$	87,594	$	270,156	$	2,735,359
Non-performing	—		73		2,530		1,398		182		895		982		6,060
Total construction/ land development	667,797		601,615		894,340		166,388		51,652		88,489		271,138		2,741,419
Agricultural
Performing	$	49,306	$	44,578	$	60,758	$	38,875	$	32,818	$	72,572	$	36,321	$	335,228
Non-performing	—		—		—		65		—		479		193		737
Total agricultural	49,306		44,578		60,758		38,940		32,818		73,051		36,514		335,965
Total commercial real estate loans	$	935,554	$	1,127,650	$	2,023,558	$	1,041,573	$	486,086	$	2,071,625	$	887,874	$	8,573,920
Residential real estate loans
Residential 1-4 family
Performing	$	187,704	$	255,185	$	416,753	$	257,574	$	153,384	$	437,827	$	197,230	$	1,905,657
Non-performing	—		1,717		5,784		3,677		3,307		11,817		393		26,695
Total residential 1-4 family	187,704		256,902		422,537		261,251		156,691		449,644		197,623		1,932,352
Multifamily residential
Performing	$	1,876	$	11,822	$	164,927	$	46,451	$	111,781	$	97,878	$	26,419	$	461,154
Non-performing	—		—		20,902		592		—		—		—		21,494
Total multifamily residential	1,876		11,822		185,829		47,043		111,781		97,878		26,419		482,648
Total real estate	$	1,125,134	$	1,396,374	$	2,631,924	$	1,349,867	$	754,558	$	2,619,147	$	1,111,916	$	10,988,920
Consumer
Performing	$	218,988	$	225,480	$	225,577	$	184,063	$	91,893	$	259,861	$	2,808	$	1,208,670
Non-performing	73		651		2,951		303		555		5,923		71		10,527
Total consumer	219,061		226,131		228,528		184,366		92,448		265,784		2,879		1,219,197
Commercial and industrial
Performing	$	133,512	$	556,469	$	336,274	$	109,586	$	51,740	$	306,000	$	577,929	$	2,071,510
Non-performing	—		2,939		3,144		1,362		14		5,045		653		13,157
Total commercial and industrial	133,512		559,408		339,418		110,948		51,754		311,045		578,582		2,084,667
Agricultural and other
Performing	$	79,514	$	57,083	$	48,150	$	34,312	$	25,209	$	48,579	$	237,274	$	530,121
Non-performing	—		4		—		46		4		907		113		1,074
Total agricultural and other	79,514		57,087		48,150		34,358		25,213		49,486		237,387		531,195
Total	$	1,557,221	$	2,239,000	$	3,248,020	$	1,679,539	$	923,973	$	3,245,462	$	1,930,764	$	14,823,979

32

	December 31, 2023
	Term Loans Amortized Cost Basis by Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential
Performing	$	388,831	$	1,150,598	$	821,373	$	490,153	$	404,061	$	1,718,776	$	536,349	$	5,510,141
Non-performing	—		—		9,215		1,145		761		28,359		333		39,813
Total non-farm/non-residential	388,831		1,150,598		830,588		491,298		404,822		1,747,135		536,682		5,549,954
Construction/land development
Performing	$	501,215	$	918,390	$	382,954	$	88,204	$	55,239	$	81,028	$	253,667	$	2,280,697
Non-performing	—		7,818		1,703		697		618		188		1,326		12,350
Total construction/land development	501,215		926,208		384,657		88,901		55,857		81,216		254,993		2,293,047
Agricultural
Performing	$	39,976	$	69,584	$	46,809	$	46,608	$	20,485	$	76,547	$	24,716	$	324,725
Non-performing	—		—		79		—		—		352		—		431
Total agricultural	39,976		69,584		46,888		46,608		20,485		76,899		24,716		325,156
Total commercial real estate loans	$	930,022	$	2,146,390	$	1,262,133	$	626,807	$	481,164	$	1,905,250	$	816,391	$	8,168,157
Residential real estate loans
Residential 1-4 family
Performing	$	261,784	$	405,239	$	298,207	$	167,475	$	108,091	$	396,130	$	185,948	$	1,822,874
Non-performing	—		3,958		2,356		3,647		3,236		7,599		590		21,386
Total residential 1-4 family	261,784		409,197		300,563		171,122		111,327		403,729		186,538		1,844,260
Multifamily residential
Performing	$	3,983	$	87,012	$	107,301	$	108,702	$	39,815	$	74,564	$	14,359	$	435,736
Non-performing	—		—		—		—		—		—		—		—
Total multifamily residential	3,983		87,012		107,301		108,702		39,815		74,564		14,359		435,736
Total real estate	$	1,195,789	$	2,642,599	$	1,669,997	$	906,631	$	632,306	$	2,383,543	$	1,017,288	$	10,448,153
Consumer
Performing	$	255,771	$	256,826	$	215,831	$	109,442	$	110,267	$	198,982	$	3,060	$	1,150,179
Non-performing	159		762		814		539		139		1,089		9		3,511
Total consumer	255,930		257,588		216,645		109,981		110,406		200,071		3,069		1,153,690
Commercial and industrial
Performing	$	616,809	$	382,190	$	156,056	$	87,531	$	111,529	$	273,434	$	680,552	$	2,308,101
Non-performing	2,562		3,186		863		563		2,993		3,243		3,480		16,890
Total commercial and industrial	619,371		385,376		156,919		88,094		114,522		276,677		684,032		2,324,991
Agricultural and other
Performing	$	67,569	$	55,904	$	39,473	$	28,220	$	15,195	$	48,203	$	242,818	$	497,382
Non-performing	71		33		10		—		—		34		364		512
Total agricultural and other	67,640		55,937		39,483		28,220		15,195		48,237		243,182		497,894
Total	$	2,138,730	$	3,341,500	$	2,083,044	$	1,132,926	$	872,429	$	2,908,528	$	1,947,571	$	14,424,728

The Company had approximately $45.3 million or 180 total revolving loans convert to term loans for the nine months ended September 30, 2024 compared to $32.1 million or 182 total revolving loans convert to term loans for the nine months ended September 30, 2023. These loans were considered immaterial for vintage disclosure inclusion.

33

The following table presents the amortized cost basis of modified loans to borrowers experiencing financial difficulty by class and modification type at September 30, 2024 and December 31, 2023. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below.

	September 30, 2024
									Combination of Modifications
	Term Extension		Interest Rate Reduction		Principal Reduction		Interest Only		Interest Rate Reduction and Term Extension		Principal Reduction and Interest Rate Reduction		Term Extension and Interest Only		Term Extension and Principal Reduction		Post- Modification Outstanding Balance		Percentage of Total Class of Loans Receivable
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	389	$	—	$	—	$	1,307	$	342	$	—	$	15,874	$	—	$	17,912	0.33	%
Construction/land development	—		—		—		78		—		—		—		—		78		—
Residential real estate loans
Residential 1-4 family	1,061		951		103		23		606		—		—		117		2,861		0.15
Total real estate	1,450		951		103		1,408		948		—		15,874		117		20,851		0.19
Consumer	6		—		—		9		—		3		—		—		18		—
Commercial and industrial	2,308		—		—		992		74		—		—		—		3,374		0.16
Total	$	3,764	$	951	$	103	$	2,409	$	1,022	$	3	$	15,874	$	117	$	24,243	0.16	%

	December 31, 2023
									Combination of Modifications
	Term Extension		Interest Rate Reduction		Principal Reduction		Interest Only		Interest Rate Reduction and Term Extension		Principal Reduction and Interest Rate Reduction		Term Extension and Interest Only		Term Extension and Principal Reduction		Post- Modification Outstanding Balance		Percentage of Total Class of Loans Receivable
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	398	$	—	$	—	$	1,537	$	348	$	—	$	16,023	$	—	$	18,306	0.33	%
Construction/land development	—		—		—		149		—		—		—		—		149		0.01
Residential real estate loans
Residential 1-4 family	560		598		106		59		516		—		—		116		1,955		0.11
Total real estate	958		598		106		1,745		864		—		16,023		116		20,410		0.20
Consumer	14		—		1		10		—		5		—		—		30		—
Commercial and industrial	2,253		38		42		1,763		74		—		—		—		4,170		0.18
Total	$	3,225	$	636	$	149	$	3,518	$	938	$	5	$	16,023	$	116	$	24,610	0.17	%

During the nine months ended September 30, 2024, the Company restructured approximately $1.2 million in loans to eight borrowers. The ending balance of these loans as of September 30, 2024, was $1.1 million. During the nine months ended September 30, 2023, the Company restructured approximately $19.4 million in loans to 18 borrowers. The ending balance of these loans as of September 30, 2023, was $20.8 million. The Company considered the financial effect of these loan modifications to borrowers experiencing financial difficulty during the nine months ended September 30, 2024 and September 30, 2023 as well as the unadvanced balances to these borrowers immaterial for tabular disclosure inclusion.

34

The following table presents the amortized cost basis of loans that had a payment default during the nine months ended September 30, 2024 and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty.

	September 30, 2024
	Term Extension		Interest Rate Reduction		Combination Interest Rate Reduction and Term Extension
	(Dollars in thousands)
Real estate
Commercial real estate loans
Non-farm/non-residential	$	—	$	—	$	—
Residential real estate loans
Residential 1-4 family	385		511		238
Total real estate	385		511		238
Consumer	6		—		—
Commercial and industrial	—		—		—
Total	$	391	$	511	$	238

The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The Company has modified 11 loans over the past 12 months to borrowers experiencing financial difficulty. The pre-modification balance of the loans was $1.4 million, and the ending balance as of September 30, 2024 was $1.3 million. The $1.3 million balance consists of $1.1 million of non-accrual loans and $193,000 of current loans, of which $92,000 were 60-89 days past due. The remaining balance of the loans was current as of September 30, 2024.

Upon the Company's determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses on loans is adjusted by the same amount. The defaults impact the loss rate by applicable loan pool for the quarterly CECL calculation. For individually analyzed loans which are not considered to be collateral dependent, an allowance is recorded based on the loss rate for the respective pool within the collective evaluation.

The following is a presentation of total foreclosed assets as of September 30, 2024 and December 31, 2023:

	September 30, 2024		December 31, 2023
	(In thousands)
Commercial real estate loans
Non-farm/non-residential	$	29,824	$	29,894
Construction/land development	12,919		47
Residential real estate loans
Residential 1-4 family	297		545
Total foreclosed assets held for sale	$	43,040	$	30,486

6. Goodwill and Core Deposits and Other Intangibles

Changes in the carrying amount and accumulated amortization of the Company’s goodwill and core deposits and other intangibles at September 30, 2024 and December 31, 2023, were as follows:

	September 30, 2024		December 31, 2023
	(In thousands)
Goodwill
Balance, beginning of period	$	1,398,253	$	1,398,253
Balance, end of period	$	1,398,253	$	1,398,253

35

	September 30, 2024		December 31, 2023
	(In thousands)
Core Deposit Intangibles
Balance, beginning of period	$	48,770	$	58,455
Amortization expense	(6,375)		(7,432)
Balance, September 30	$	42,395	51,023
Amortization expense			(2,253)
Balance, end of year			$	48,770

The carrying basis and accumulated amortization of core deposit intangibles at September 30, 2024 and December 31, 2023 were:

	September 30, 2024		December 31, 2023
	(In thousands)
Gross carrying basis	$	128,888	$	128,888
Accumulated amortization	(86,493)		(80,118)
Net carrying amount	$	42,395	$	48,770

Core deposit intangible amortization expense was approximately $2.1 million and $2.5 million for the three months ended September 30, 2024 and 2023, respectively. Core deposit intangible amortization expense was approximately $6.4 million and $7.4 million for the nine months ended September 30, 2024 and 2023, respectively. The Company’s estimated amortization expense of core deposits intangibles for each of the years 2024 through 2028 is approximately: 2024 – $8.4 million; 2025 – $8.0 million; 2026 – $7.8 million; 2027– $6.6 million; 2028 – $4.2 million.

The carrying amount of the Company’s goodwill was $1.40 billion at both September 30, 2024 and December 31, 2023. Goodwill is tested annually for impairment during the fourth quarter or more often if events and circumstances indicate there may be an impairment. During the 2023 review, no impairment was found. If the implied fair value of goodwill is lower than its carrying amount, goodwill impairment is indicated, and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the consolidated financial statements.

7. Other Assets

Other assets consist primarily of equity securities without a readily determinable fair value and other miscellaneous assets. As of September 30, 2024 and December 31, 2023, other assets were $352.6 million and $323.6 million, respectively.

The Company has equity securities without readily determinable fair values such as stock holdings in the Federal Home Loan Bank (“FHLB”) and the Federal Reserve Bank (“Federal Reserve”) which are outside the scope of ASC Topic 321, Investments – Equity Securities (“ASC Topic 321”). These equity securities without a readily determinable fair value were $133.3 million and $133.4 million at September 30, 2024 and December 31, 2023, and are accounted for at cost.

The Company has equity securities such as stock holdings in First National Bankers’ Bank and other miscellaneous holdings which are accounted for under ASC Topic 321. These equity securities without a readily determinable fair value were $93.3 million and $90.3 million at September 30, 2024 and December 31, 2023, respectively. There were no transactions during the period that would indicate a material change in fair value.

8. Deposits

The aggregate amount of time deposits with a minimum denomination of $250,000 was $923.9 million and $836.7 million at September 30, 2024 and December 31, 2023, respectively. The aggregate amount of time deposits with a minimum denomination of $100,000 was $1.20 billion and $1.09 billion at September 30, 2024 and December 31, 2023, respectively. Interest expense applicable to certificates in excess of $100,000 totaled $12.7 million and $7.5 million for the three months ended September 30, 2024 and 2023, respectively. Interest expense applicable to certificates in excess of $100,000 totaled $36.5 million and $15.7 million for the nine months ended September 30, 2024 and 2023, respectively. As of September 30, 2024 and December 31, 2023, brokered deposits were $421.3 million and $401.0 million, respectively.

Deposits totaling approximately $2.84 billion and $3.05 billion at September 30, 2024 and December 31, 2023, respectively, were public funds obtained primarily from state and political subdivisions in the United States.

36

9. Securities Sold Under Agreements to Repurchase

At September 30, 2024 and December 31, 2023, securities sold under agreements to repurchase totaled $179.4 million and $142.1 million, respectively. For the three-month periods ended September 30, 2024 and 2023, securities sold under agreements to repurchase daily weighted-average totaled $157.2 million and $154.7 million, respectively. For the nine-month periods ended September 30, 2024 and 2023, securities sold under agreements to repurchase daily weighted-average totaled $163.0 million and $144.6 million, respectively.

The remaining contractual maturity of securities sold under agreements to repurchase in the consolidated balance sheets as of September 30, 2024 and December 31, 2023 is presented in the following table:

	September 30, 2024				December 31, 2023
	Overnight and Continuous		Total		Overnight and Continuous		Total
	(In thousands)
Securities sold under agreements to repurchase:
U.S. government-sponsored enterprises	$	9,964	$	9,964	$	—	$	—
Mortgage-backed securities	51,314		51,314		—		—
State and political subdivisions	21,808		21,808		—		—
Other securities	96,330		96,330		142,085		142,085
Total borrowings	$	179,416	$	179,416	$	142,085	$	142,085

10. FHLB and Other Borrowed Funds

The Company’s FHLB borrowed funds, which are secured by our loan portfolio, were $600.0 million at both September 30, 2024 and December 31, 2023. At September 30, 2024 and December 31, 2023, the entire $600.0 million of the outstanding balances were classified as long-term advances. The FHLB advances mature from 2025 to 2037 with fixed interest rates ranging from 3.37% to 4.84%. Expected maturities could differ from contractual maturities because FHLB may have the right to call, or the Company may have the right to prepay certain obligations.

Other borrowed funds were $700.8 million as of September 30, 2024 and were classified as short-term advances. The Company had $701.3 million in other borrowed funds as of December 31, 2023. As of both September 30, 2024 and December 31, 2023, the Company had drawn $700.0 million from the Bank Term Funding Program in the ordinary course of business, and these advances mature on January 16, 2025.

Additionally, the Company had $1.24 billion and $1.33 billion at September 30, 2024 and December 31, 2023, respectively, in letters of credit under a FHLB blanket borrowing line of credit, which are used to collateralize public deposits.

11. Subordinated Debentures

Subordinated debentures at September 30, 2024 and December 31, 2023 consisted of the following components:

	As of September 30, 2024		As of December 31, 2023
	(In thousands)
Subordinated debt securities
Subordinated notes, net of issuance costs, issued in 2020, due 2030, fixed rate of 5.50% during the first five years and at a floating rate of 534.5 basis points above the then three-month SOFR rate, reset quarterly, thereafter, callable in 2025 without penalty	$	141,096	$	142,084
Subordinated notes, net of issuance costs, issued in 2022, due 2032, fixed rate of 3.125% during the first five years and at a floating rate of 182 basis points above the then three-month SOFR rate, reset quarterly, thereafter, callable in 2027 without penalty	298,298		297,750
Total	$	439,394	$	439,834

37

Subordinated Debt Securities. On April 1, 2022, the Company acquired $140.0 million in aggregate principal amount of 5.500% Fixed-to-Floating Rate Subordinated Notes due 2030 (the “2030 Notes”) from Happy, and the Company recorded approximately $144.4 million which included fair value adjustments. The 2030 Notes are unsecured, subordinated debt obligations of the Company and will mature on July 31, 2030. From and including the date of issuance to, but excluding July 31, 2025 or the date of earlier redemption, the 2030 Notes will bear interest at an initial rate of 5.50% per annum, payable in arrears on January 31 and July 31 of each year. From and including July 31, 2025 to, but excluding, the maturity date or earlier redemption, the 2030 Notes will bear interest at a floating rate equal to the Benchmark rate (which is expected to be 3-month Secured Overnight Funding Rate (SOFR)), each as defined in and subject to the provisions of the applicable supplemental indenture for the 2030 Notes, plus 5.345%, payable quarterly in arrears on January 31, April 30, July 31, and October 31 of each year, commencing on October 31, 2025.

The Company may, beginning with the interest payment date of July 31, 2025, and on any interest payment date thereafter, redeem the 2030 Notes, in whole or in part, subject to prior approval of the Federal Reserve if then required, at a redemption price equal to 100% of the principal amount of the 2030 Notes to be redeemed plus accrued and unpaid interest to but excluding the date of redemption. The Company may also redeem the 2030 Notes at any time, including prior to July 31, 2025, at the Company’s option, in whole but not in part, subject to prior approval of the Federal Reserve if then required, if certain events occur that could impact the Company’s ability to deduct interest payable on the 2030 Notes for U.S. federal income tax purposes or preclude the 2030 Notes from being recognized as Tier 2 capital for regulatory capital purposes, or if the Company is required to register as an investment company under the Investment Company Act of 1940, as amended. In each case, the redemption would be at a redemption price equal to 100% of the principal amount of the 2030 Notes plus any accrued and unpaid interest to, but excluding, the redemption date.

On January 18, 2022, the Company completed an underwritten public offering of $300.0 million in aggregate principal amount of its 3.125% Fixed-to-Floating Rate Subordinated Notes due 2032 (the “2032 Notes”) for net proceeds, after underwriting discounts and issuance costs of approximately $296.4 million. The 2032 Notes are unsecured, subordinated debt obligations of the Company and will mature on January 30, 2032. From and including the date of issuance to, but excluding January 30, 2027 or the date of earlier redemption, the 2032 Notes will bear interest at an initial rate of 3.125% per annum, payable in arrears on January 30 and July 30 of each year. From and including January 30, 2027 to, but excluding, the maturity date or earlier redemption, the 2032 Notes will bear interest at a floating rate equal to the Benchmark rate (which is expected to be Three-Month Term SOFR), each as defined in and subject to the provisions of the applicable supplemental indenture for the 2032 Notes, plus 182 basis points, payable quarterly in arrears on January 30, April 30, July 30, and October 30 of each year, commencing on April 30, 2027.

The Company may, beginning with the interest payment date of January 30, 2027, and on any interest payment date thereafter, redeem the 2032 Notes, in whole or in part, subject to prior approval of the Federal Reserve if then required, at a redemption price equal to 100% of the principal amount of the 2032 Notes to be redeemed plus accrued and unpaid interest to but excluding the date of redemption. The Company may also redeem the 2032 Notes at any time, including prior to January 30, 2027, at the Company’s option, in whole but not in part, subject to prior approval of the Federal Reserve if then required, if certain events occur that could impact the Company’s ability to deduct interest payable on the 2032 Notes for U.S. federal income tax purposes or preclude the 2032 Notes from being recognized as Tier 2 capital for regulatory capital purposes, or if the Company is required to register as an investment company under the Investment Company Act of 1940, as amended. In each case, the redemption would be at a redemption price equal to 100% of the principal amount of the 2032 Notes plus any accrued and unpaid interest to, but excluding, the redemption date.

38

12. Income Taxes

The following is a summary of the components of the provision for income taxes for the three and nine months ended September 30, 2024 and 2023:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2024		2023		2024		2023
	(In thousands)
Current:
Federal	$	26,586	$	23,861	$	75,213	$	76,059
State	5,412		4,858		15,312		15,484
Total current	31,998		28,719		90,525		91,543
Deferred:
Federal	(2,453)		1,758		570		715
State	(499)		358		116		146
Total deferred	(2,952)		2,116		686		861
Income tax expense	$	29,046	$	30,835	$	91,211	$	92,404

The reconciliation between the statutory federal income tax rate and effective income tax rate is as follows for the three and nine months ended September 30, 2024 and 2023:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Statutory federal income tax rate	21.00	%	21.00	%	21.00	%	21.00	%
Effect of non-taxable interest income	(1.28)		(0.64)		(0.98)		(0.71)
Stock compensation	0.58		0.29		0.57		0.29
State income taxes, net of federal benefit	2.45		2.73		2.57		2.64
Executive officer compensation & other	(0.25)		0.47		0.06		(0.07)
Effective income tax rate	22.50	%	23.85	%	23.22	%	23.15	%

39

The types of temporary differences between the tax basis of assets and liabilities and their financial reporting amounts that give rise to deferred income tax assets and liabilities, and their approximate tax effects, are as follows:

	September 30, 2024		December 31, 2023
	(In thousands)
Deferred tax assets:
Allowance for credit losses	$	86,628	$	81,251
Deferred compensation	6,448		7,619
Stock compensation	5,344		6,803
Non-accrual interest income	1,786		1,463
Real estate owned	70		79
Unrealized loss on investment securities, available-for-sale	62,211		81,493
Loan discounts	3,689		5,119
Investments	23,580		25,789
Other	19,084		14,691
Gross deferred tax assets	208,840		224,307
Deferred tax liabilities:
Accelerated depreciation on premises and equipment	—		1,477
Tax basis on acquisitions	6,691		4,061
Core deposit intangibles	9,610		11,021
FHLB dividends	2,835		2,351
Other	13,075		8,233
Gross deferred tax liabilities	32,211		27,143
Net deferred tax assets	$	176,629	$	197,164

The Company files income tax returns in the U.S. federal jurisdiction. The Company's income tax returns are open and subject to examinations from the 2020 tax year and forward. The Company's various state income tax returns are generally open from the 2020 and later tax return years based on individual state statute of limitations.

13. Common Stock, Compensation Plans and Other

Common Stock

The Company’s Restated Articles of Incorporation, as amended, authorize the issuance of up to 300,000,000 shares of common stock, par value $0.01 per share.

The Company also has the authority to issue up to 5,500,000 shares of preferred stock, par value $0.01 per share under the Company’s Restated Articles of Incorporation, as amended.

Stock Repurchases

During the nine months ended September 30, 2024, the Company repurchased a total of 3,426,028 shares with a weighted-average stock price of $24.36 per share. Shares repurchased under the program as of September 30, 2024 since its inception total 26,411,743 shares. The remaining balance available for repurchase is 13,340,257 shares at September 30, 2024.

Stock Compensation Plans

The Company has a stock option and performance incentive plan known as the Home BancShares, Inc. 2022 Equity Incentive Plan (the “Plan”). The purpose of the Plan is to attract and retain highly qualified officers, directors, key employees, and other persons, and to motivate those persons to improve the Company’s business results. As of September 30, 2024, the maximum total number of shares of the Company’s common stock available for issuance under the Plan was 14,788,000 shares. At September 30, 2024, the Company had 2,072,278 shares of common stock available for future grants and 3,863,313 shares of common stock reserved for issuance pursuant to the Plan.

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The intrinsic value of the stock options outstanding was $8.4 million, which includes the intrinsic value of vested stock options of $6.2 million at September 30, 2024. The intrinsic value of stock options exercised during the nine months ended September 30, 2024 was approximately $6.8 million. Total unrecognized compensation cost related to non-vested stock option awards, which are expected to be recognized over the vesting periods, was approximately $1.7 million as of September 30, 2024.

The table below summarizes the stock option transactions under the Plan at September 30, 2024 and December 31, 2023 and changes during the nine-month period and year then ended:

	For the Nine Months Ended September 30, 2024			For the Year Ended December 31, 2023
	Shares (000)	Weighted- Average Exercisable Price		Shares (000)	Weighted- Average Exercisable Price
Outstanding, beginning of year	2,776	$	20.95	2,971	$	20.45
Granted	—	—		25	22.63
Forfeited/Expired	(33)	21.87		(10)	23.38
Exercised	(952)	18.13		(210)	14.01
Outstanding, end of period	1,791	22.43		2,776	20.95
Exercisable, end of period	1,253	22.11		1,940	20.05

Stock-based compensation expense for stock-based compensation awards granted is based on the grant-date fair value. For stock option awards, the fair value is estimated at the date of grant using the Black-Scholes option-pricing model. This model requires the input of highly subjective assumptions, changes to which can materially affect the fair value estimate. Additionally, there may be other factors that would otherwise have a significant effect on the value of employee stock options granted but are not considered by the model. Accordingly, while management believes that the Black-Scholes option-pricing model provides a reasonable estimate of fair value, the model does not necessarily provide the best single measure of fair value for the Company's employee stock options. There were no options granted during the nine months ended September 30, 2024. The fair value of each option granted is estimated on the date of grant using the Black-Scholes option-pricing model based on the weighted-average assumptions for expected dividend yield, expected stock price volatility, risk-free interest rate, and expected life of options granted.

The assumptions used in determining the fair value of the 2024 and 2023 stock option grants were as follows:

	For the Nine Months Ended September 30, 2024	For the Year Ended December 31, 2023
Expected dividend yield	Not Applicable	2.98	%
Expected stock price volatility	Not Applicable	27.97	%
Risk-free interest rate	Not Applicable	3.37	%
Expected life of options	Not Applicable	6.5 years

The following is a summary of currently outstanding and exercisable options at September 30, 2024:

Options Outstanding					Options Exercisable
Exercise Prices	Options Outstanding Shares (000)	Weighted- Average Remaining Contractual Life (in years)	Weighted- Average Exercise Price		Options Exercisable Shares (000)	Weighted- Average Exercise Price
$16.00 to $17.99	40	0.54	$	17.12	40	$	17.12
$18.00 to $19.99	188	1.32	18.53		188	18.53
$20.00 to $21.99	220	3.73	20.88		186	20.92
$22.00 to $23.99	1,253	3.90	23.22		767	23.19
$24.00 to $25.99	90	3.65	25.59		72	25.93
	1,791				1,253

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The table below summarized the activity for the Company’s restricted stock issued and outstanding at September 30, 2024 and December 31, 2023 and changes during the period and year then ended:

	As of September 30, 2024		As of December 31, 2023
	(In thousands)
Beginning of year	1,429		1,381
Issued	516		261
Vested	(461)		(152)
Forfeited	(59)		(61)
End of period	1,425		1,429
Amount of expense for the nine months and twelve months ended, respectively	$	5,963	$	8,016

Total unrecognized compensation cost related to non-vested restricted stock awards, which are expected to be recognized over the vesting periods, was approximately $16.5 million as of September 30, 2024.

14. Non-Interest Expense

The table below shows the components of non-interest expense for the three and nine months ended September 30, 2024 and 2023:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(In thousands)
Salaries and employee benefits	$	58,861	$	64,512	$	180,198	$	193,536
Occupancy and equipment	14,546		15,463		43,505		45,338
Data processing expense	9,088		9,103		27,170		27,222
Other operating expenses:
Advertising	1,810		2,295		5,156		6,624
Amortization of intangibles	2,095		2,477		6,375		7,432
Electronic banking expense	3,569		3,709		10,137		10,714
Directors’ fees	362		417		1,283		1,415
Due from bank service charges	302		282		860		841
FDIC and state assessment	3,360		2,794		12,172		9,514
Insurance	926		878		2,734		2,694
Legal and accounting	1,902		1,514		6,600		4,038
Other professional fees	2,062		2,117		6,406		7,175
Operating supplies	673		860		1,969		2,361
Postage	522		491		1,542		1,578
Telephone	455		544		1,369		1,645
Other expense	9,512		7,306		27,250		23,561
Total other operating expenses	27,550		25,684		83,853		79,592
Total non-interest expense	$	110,045	$	114,762	$	334,726	$	345,688

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15. Leases

The Company leases land and office facilities under long-term, non-cancelable operating lease agreements. The leases expire at various dates through 2044 and do not include renewal options based on economic factors that would have implied that continuation of the lease was reasonably certain. Certain leases provide for increases in future minimum annual rental payments as defined in the lease agreements. The leases generally include real estate taxes and common area maintenance charges in the rental payments. Short-term leases are leases having a term of twelve months or less. The Company does not separate nonlease components from the associated lease component of our operating leases. As a result, the Company accounts for these components as a single component since (i) the timing and pattern of transfer of the nonlease components and the associated lease component are the same and (ii) the lease component, if accounted for separately, would be classified as an operating lease. The Company recognizes short term leases on a straight-line basis and does not record a related right-of-use ("ROU") asset and liability for such leases. In addition, equipment leases were determined to be immaterial and a related ROU asset and liability for such leases is not recorded.

As of September 30, 2024, the balances of the ROU asset and lease liability were $43.0 million and $45.8 million, respectively. As of December 31, 2023, the balances of the ROU asset and lease liability were $42.2 million and $45.0 million, respectively. The ROU asset is included in bank premises and equipment, net, and the lease liability is included in accrued interest payable and other liabilities.

The minimum rental commitments under these noncancelable operating leases are as follows (in thousands) as of September 30, 2024 and December 31, 2023:

	September 30, 2024		December 31, 2023
2024	$	2,678	$	9,373
2025	10,201		8,549
2026	9,468		8,111
2027	8,144		7,223
2028	6,368		5,496
Thereafter	22,053		19,827
Total future minimum lease payments	$	58,912	$	58,579
Discount effect of cash flows	(13,064)		(13,551)
Present value of net future minimum lease payments	$	45,848	$	45,028

Additional information (dollar amounts in thousands):

	Three Months Ended						Nine Months Ended
Lease expense:	September 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Operating lease expense	$	2,266		$	2,059		$	6,901		$	5,937
Short-term lease expense	—			—			—			—
Variable lease expense	302			289			895			810
Total lease expense	$	2,568		$	2,348		$	7,796		$	6,747
Other information:
Cash paid for amounts included in the measurement of lease liabilities	$	1,972		$	2,136		$	6,802		$	6,146
Weighted-average remaining lease term (in years)	7.64			8.33			7.75			8.62
Weighted-average discount rate	3.52		%	3.43		%	3.46		%	3.44		%

The Company currently leases two properties from two related parties. Total rent expense from the leases was $35,000, or 1.37% of total lease expense and $97,000, or 1.25% of total lease expense, for the three and nine months ended September 30, 2024, respectively.

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16. Significant Estimates and Concentrations of Credit Risks

Accounting principles generally accepted in the United States of America require disclosure of certain significant estimates and current vulnerabilities due to certain concentrations. Estimates related to the allowance for credit losses and certain concentrations of credit risk are reflected in Note 5, while deposit concentrations are reflected in Note 8.

The Company’s primary market areas are in Arkansas, Florida, Texas, South Alabama and New York. The Company primarily grants loans to customers located within these markets unless the borrower has an established relationship with the Company.

The diversity of the Company’s economic base tends to provide a stable lending environment. Although the Company has a loan portfolio that is diversified in both industry and geographic area, a substantial portion of its debtors’ ability to honor their contracts is dependent upon real estate values, tourism demand and the economic conditions prevailing in its market areas.

Although the Company has a diversified loan portfolio, at September 30, 2024 and December 31, 2023, commercial real estate loans represented 57.8% and 56.7% of total loans receivable, respectively, and 216.5% and 215.5% of total stockholders’ equity at September 30, 2024 and December 31, 2023, respectively. Residential real estate loans represented 16.3% and 15.8% of total loans receivable and 61.0% and 60.1% of total stockholders’ equity at September 30, 2024 and December 31, 2023, respectively.

Approximately 79.6% of the Company’s total loans and 83.5% of the Company’s real estate loans as of September 30, 2024, are to borrowers whose collateral is located in Alabama, Arkansas, Florida, Texas and New York, the states in which the Company has its branch locations.

Any future volatility in the economy could cause the values of assets and liabilities recorded in the financial statements to change rapidly, resulting in material future adjustments in asset values, the allowance for credit losses and capital that could negatively impact the Company’s ability to meet regulatory capital requirements and maintain sufficient liquidity.

17. Commitments and Contingencies

In the ordinary course of business, the Company makes various commitments and incurs certain contingent liabilities to fulfill the financing needs of its customers. These commitments and contingent liabilities include lines of credit and commitments to extend credit and issue standby letters of credit. The Company applies the same credit policies and standards as they do in the lending process when making these commitments. The collateral obtained is based on the assessed creditworthiness of the borrower.

At September 30, 2024 and December 31, 2023, commitments to extend credit of $4.53 billion and $4.59 billion, respectively, were outstanding. A percentage of these balances are participated out to other banks; therefore, the Company can call on the participating banks to fund future draws. Since some of these commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements.

Outstanding standby letters of credit are contingent commitments issued by the Company, generally to guarantee the performance of a customer in third-party borrowing arrangements. The term of the guarantee is dependent upon the creditworthiness of the borrower, some of which are long-term. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, commercial real estate and residential real estate. Management uses the same credit policies in granting lines of credit as it does for on-balance-sheet instruments. The maximum amount of future payments the Company could be required to make under these guarantees at September 30, 2024 and December 31, 2023, was $154.4 million and $185.5 million, respectively.

The Company and/or its bank subsidiary have various unrelated legal proceedings, most of which involve loan foreclosure activity pending, which, in the aggregate, are not expected to have a material adverse effect on the financial position or results of operations or cash flows of the Company and its subsidiary.

18. Regulatory Matters

The Bank is subject to a legal limitation on dividends that can be paid to the parent company without prior approval of the applicable regulatory agencies. Arkansas bank regulators have specified that the maximum dividend limit state banks may pay to the parent company without prior approval is 75% of the current year earnings plus 75% of the retained net earnings of the preceding year. Since the Bank is also under supervision of the Federal Reserve, it is further limited if the total of all dividends declared in any calendar year by the Bank exceeds the Bank’s net profits to date for that year combined with its retained net profits for the preceding two years. During the nine months ended September 30, 2024, the Company requested approximately $232.4 million in regular dividends from its banking subsidiary.

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The Company’s banking subsidiary is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Furthermore, the Company’s regulators could require adjustments to regulatory capital not reflected in the consolidated financial statements.

Quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios of total, Tier 1 common equity Tier 1 ("CET1") and 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, 2024, the Company meets all capital adequacy requirements to which it is subject.

On December 31, 2018, the federal banking agencies issued a joint final rule to revise their regulatory capital rules to permit bank holding companies and banks to phase-in, for regulatory capital purposes, the day-one impact of the new CECL accounting rule on retained earnings over a period of three years. As part of its response to the impact of COVID-19, on March 27, 2020, the federal banking regulatory agencies issued an interim final rule that provided the option to temporarily delay certain effects of CECL on regulatory capital for two years, followed by a three-year transition period. The interim final rule allows bank holding companies and banks to delay for two years 100% of the day-one impact of adopting CECL and 25% of the cumulative change in the reported allowance for credit losses since adopting CECL. The Company elected to adopt the interim final rule, which is reflected in the Company's risk-based capital ratios.

Basel III became effective for the Company and its bank subsidiary on January 1, 2015. Basel III amended the prompt corrective action rules to incorporate a CET1 requirement and to raise the capital requirements for certain capital categories. In order to be adequately capitalized for purposes of the prompt corrective action rules, a banking organization is required to have at least a 4.5% CET1 risk-based capital ratio, a 4% Tier 1 leverage capital ratio, a 6% Tier 1 risk-based capital ratio and an 8% total risk-based capital ratio.

The Federal Reserve Board’s risk-based capital guidelines include the definitions for (1) a well-capitalized institution, (2) an adequately-capitalized institution, and (3) an undercapitalized institution. Under Basel III, the criteria for a well-capitalized institution are: a 6.5% CET1 risk-based capital ratio, a 5% Tier 1 leverage capital ratio, an 8% Tier 1 risk-based capital ratio, and a 10% total risk-based capital ratio. As of September 30, 2024, the Bank met the capital standards for a well-capitalized institution. The Company’s CET1 risk-based capital ratio, Tier 1 leverage capital ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratio were 14.65%, 12.54%, 14.65%, and 18.28%, respectively, as of September 30, 2024.

19. Additional Cash Flow Information

The following is a summary of the Company’s additional cash flow information during the nine-month periods ended:

	September 30,
	2024		2023
	(In thousands)
Interest paid	$	324,658	$	241,466
Income taxes paid	80,075		106,619
Assets acquired by foreclosure	11,734		383

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20. Financial Instruments

Fair value is the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair values:

Level 1	Quoted prices in active markets for identical assets or liabilities
Level 2	Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities
Level 3	Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities

A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Transfers of financial instruments between levels within the fair value hierarchy are recognized on the date management determines that the underlying circumstances or assumptions have changed.

Available-for-sale securities – the Company's available-for-sale securities are considered to be Level 2 securities. The Level 2 securities consist primarily of U.S. government-sponsored enterprises, mortgage-backed securities plus state and political subdivisions. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things.

The Company reviews the prices supplied by the independent pricing service, as well as their underlying pricing methodologies, for reasonableness and to ensure such prices are aligned with traditional pricing matrices. In general, the Company does not purchase investment portfolio securities with complicated structures. Pricing for the Company’s investment securities is fairly generic and is easily obtained. The Company uses a third-party comparison pricing vendor in order to reflect consistency in the fair values of the investment securities sampled by the Company each quarter.

Held-to-maturity securities – the Company's held-to-maturity securities are considered to be Level 2 securities. The Level 2 securities consist primarily of U.S. government-sponsored enterprises, mortgage-backed securities plus state and political subdivisions. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things.

Impaired loans – Impaired loans include loans individually analyzed for credit losses for which a specific reserve has been recorded, non-accrual loans, loans past due 90 days or more and restructured loans made to borrowers experiencing financial difficulty. Impaired loans are carried at the net realizable value of the collateral if the loan is collateral dependent. A portion of the allowance for credit losses is allocated to impaired loans if the value of such loans is deemed to be less than the unpaid balance. If these allocations cause the allowance for credit losses to require an increase, such increase is reported as a component of the provision for credit losses. The fair value of loans with specific allocated losses was $74.3 million and $10.5 million as of September 30, 2024 and December 31, 2023, respectively. This valuation is considered Level 3, consisting of appraisals of underlying collateral. The Company reversed $470,000 and $1.3 million of accrued interest receivable when impaired loans were put on non-accrual status during the three months ended September 30, 2024 and 2023, respectively. The Company reversed $956,000 and $1.9 million of accrued interest receivable when impaired loans were put on non-accrual status during the nine months ended September 30, 2024 and 2023, respectively.

Foreclosed assets held for sale – Foreclosed assets held for sale are held by the Company at fair value, less estimated costs to sell. At foreclosure, if the fair value, less estimated costs to sell, of the real estate acquired is less than the Company’s recorded investment in the related loan, a write-down is recognized through a charge to the allowance for credit losses. Additionally, valuations are periodically performed by management and any subsequent reduction in value is recognized by a charge to income. The fair value of foreclosed assets held for sale is estimated using Level 3 inputs based on appraisals of underlying collateral. As of September 30, 2024 and December 31, 2023, the fair value of foreclosed assets held for sale, less estimated costs to sell, was $43.0 million and $30.5 million, respectively.

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No foreclosed assets held for sale were remeasured during the nine months ended September 30, 2024. Regulatory guidelines require the Company to reevaluate the fair value of foreclosed assets held for sale on at least an annual basis. The Company’s policy is to comply with the regulatory guidelines.

The significant unobservable (Level 3) inputs used in the fair value measurement of collateral for collateral-dependent impaired loans and foreclosed assets primarily relate to customized discounting criteria applied to the customer’s reported amount of collateral. The amount of the collateral discount depends upon the condition and marketability of the underlying collateral. As the Company’s primary objective in the event of default would be to monetize the collateral to settle the outstanding balance of the loan, less marketable collateral would receive a larger discount.

Fair Values of Financial Instruments

The following table presents the estimated fair values of the Company’s financial instruments. Fair value is the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date.

	September 30, 2024
	Carrying Amount		Fair Value		Level
	(In thousands)
Financial assets:
Cash and cash equivalents	$	1,017,677	$	1,017,677	1
Federal funds sold	6,425		6,425		1
Investment securities - available-for-sale	3,270,620		3,270,620		2
Investment securities - held-to-maturity	1,277,090		1,194,455		2
Loans receivable, net of impaired loans and allowance	14,397,652		14,489,849		3
Accrued interest receivable	118,871		118,871		1
FHLB, FRB & FNBB Bank stock; other equity investments	226,631		226,631		3
Marketable equity securities	51,540		51,540		1
Financial liabilities:
Deposits:
Demand and non-interest bearing	$	3,937,168	$	3,937,168	1
Savings and interest-bearing transaction accounts	10,966,426		10,966,426		1
Time deposits	1,802,116		1,792,949		3
Securities sold under agreements to repurchase	179,416		179,416		1
FHLB and other borrowed funds	1,300,750		1,277,447		2
Accrued interest payable	39,897		39,897		1
Subordinated debentures	439,394		388,048		3

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	December 31, 2023
	Carrying Amount		Fair Value		Level
	(In thousands)
Financial assets:
Cash and cash equivalents	$	1,000,213	$	1,000,213	1
Federal funds sold	5,100		5,100		1
Investment securities - available-for-sale	3,507,841		3,507,841		2
Investment securities - held-to-maturity	1,281,982		1,170,481		2
Loans receivable, net of impaired loans and allowance	14,048,002		14,071,775		3
Accrued interest receivable	118,966		118,966		1
FHLB, FRB & FNBB Bank stock; other equity investments	223,748		223,748		3
Marketable equity securities	49,419		49,419		1
Financial liabilities:
Deposits:
Demand and non-interest bearing	$	4,085,501	$	4,085,501	1
Savings and interest-bearing transaction accounts	11,050,347		11,050,347		1
Time deposits	1,651,863		1,633,091		3
Securities sold under agreements to repurchase	142,085		142,085		1
FHLB and other borrowed funds	1,301,300		1,291,926		2
Accrued interest payable	19,124		19,124		1
Subordinated debentures	439,834		358,682		3

21. Recent Accounting Pronouncements

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04"). ASU 2020-04 provides optional expedients and exceptions for accounting related to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. ASU 2020-04 applies only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform and do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. ASU 2020-04 was effective upon issuance and generally can be applied through December 31, 2022. To ensure the relief in Topic 848 covers the period of time during which a significant number of modifications may take place, ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 (ASU 2022-06) defers the sunset date of Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848.

In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope ("ASU 2022-01"). The amendments in the update clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. Specifically, certain provisions in Topic 848, if elected by an entity, apply to derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. Amendments in the update to the expedients and exceptions in Topic 848 capture the incremental consequences of the scope clarification and tailor the existing guidance to derivative instruments affected by the discounting transition. The amendments in this Update do not apply to contract modifications made after December 31, 2022, new hedging relationships entered into after December 31, 2022, and existing hedging relationships evaluated for effectiveness in periods after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that apply certain optional expedients in which the accounting effects are recorded through the end of the hedging relationship. ASU 2020-04 was effective upon issuance and generally can be applied through December 31, 2022. To ensure the relief in Topic 848 covers the period of time during which a significant number of modifications may take place, ASU 2022-06 defers the sunset date of Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848.

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In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848. These amendments extend the period of time preparers can utilize the reference rate reform relief guidance in Topic 848. The objective of the guidance in Topic 848 is to provide relief during the temporary transition period, so the FASB included a sunset provision within Topic 848 based on expectations of when the London Interbank Offered Rate (LIBOR) would cease being published. In 2021, the UK Financial Conduct Authority (FCA) delayed the intended cessation date of certain tenors of USD LIBOR to June 30, 2023. To ensure the relief in Topic 848 covers the period of time during which a significant number of modifications may take place, the ASU defers the sunset date of Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. ASU 2022-06 was effective upon issuance.

In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures." The amendments apply to all public entities that are required to report segment information in accordance with FASB ASC Topic 280, Segment Reporting. The amendments in the ASU are intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The amendments require that a public entity disclose, on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker ("CODM") and included within each reported measure of segment profit or loss. Public entities are required to disclose, on an annual and interim basis, an amount for other segment items by reportable segment and a description of its composition. In addition, public entities must provide all annual disclosures about a reportable segment’s profit or loss and assets currently required by FASB ASC Topic 280, Segment Reporting, in interim periods. The amendments clarify that if the CODM uses more than one measure of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources, a public entity may report one or more of those additional measures of segment profit. However, at least one of the reported segment profit or loss measures (or the single reported measure, if only one is disclosed) should be the measure that is most consistent with the measurement principles used in measuring the corresponding amounts in the public entity’s consolidated financial statements. The Amendments require that a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. Finally, the amendments require that a public entity that has a single reportable segment provide all the disclosures required by the amendments in the ASU and all existing segment disclosures in ASC Topic 280. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. A public entity should apply the amendments retrospectively to all prior periods presented in the financial statements. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. The Company is currently evaluating the potential impacts related to the adoption of the ASU.    

In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures." The amendments require that public business entities on an annual basis (a) disclose specific categories in the rate reconciliation and (b) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income (or loss) by the applicable statutory income tax rate). The amendments also require that all entities disclose on an annual basis the amount of income taxes paid (net of refunds received) disaggregated by federal (national), state, and foreign taxes, and the amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5 percent of total income taxes paid (net of refunds received). The amendments require that all entities disclose income (or loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign and income tax expense (or benefit) from continuing operations disaggregated by federal (national), state, and foreign. The ASU is effective for public business entities for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The amendments should be applied on a prospective basis. Retrospective application is permitted. The Company is currently evaluating the potential impacts related to the adoption of the ASU.    

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Report of Independent Registered Public Accounting Firm

Audit Committee, Board of Directors and Stockholders

Home BancShares, Inc.

Conway, Arkansas

Results of Review of Interim Consolidated Financial Statements

We have reviewed the condensed consolidated balance sheet of Home BancShares Inc. (the “Company”) and subsidiaries as of September 30, 2024, and the related condensed consolidated statements of income, comprehensive income (loss), and stockholder’s equity for the three-month and nine-month periods ended September 30, 2024 and 2023, and cash flows for the nine-month periods ended September 30, 2024 and 2023, and the related notes (collectively referred to as the “interim financial information or statements”). Based on our reviews, we are not aware of any material modifications that should be made to the condensed financial statements referred to above for them to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated balance sheet of the Company and subsidiaries as of December 31, 2023, and the related consolidated statements of income, comprehensive income (loss), stockholders’ equity, and cash flows for the year then ended (not presented herein), and in our report dated February 26, 2024, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of December 31, 2023, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

Basis for Review Results

These interim financial statements are the responsibility of the Company’s management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our review in accordance with the standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ Forvis Mazars, LLP

Little Rock, Arkansas

November 1, 2024

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Item 2: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with our Form 10-K, filed with the Securities and Exchange Commission on February 26, 2024, which includes the audited financial statements for the year ended December 31, 2023. Unless the context requires otherwise, the terms “Company,” “us,” “we,” and “our” refer to Home BancShares, Inc. on a consolidated basis.

General

We are a bank holding company headquartered in Conway, Arkansas, offering a broad array of financial services through our wholly-owned bank subsidiary, Centennial Bank (sometimes referred to as “Centennial” or the “Bank”). As of September 30, 2024, we had, on a consolidated basis, total assets of $22.82 billion, loans receivable, net of allowance for credit losses of $14.51 billion, total deposits of $16.71 billion, and stockholders’ equity of $3.96 billion.

We generate the majority of our revenue from interest on loans and investments, service charges, and mortgage banking income. Deposits and Federal Home Loan Bank (“FHLB”) and other borrowed funds are our primary sources of funding. Our largest expenses are interest on our funding sources, salaries and related employee benefits and occupancy and equipment. We measure our performance by calculating our return on average common equity, return on average assets and net interest margin. We also measure our performance by our efficiency ratio, which is calculated by dividing non-interest expense less amortization of core deposit intangibles by the sum of net interest income on a tax equivalent basis and non-interest income. The efficiency ratio, as adjusted, is a non-GAAP measure and is calculated by dividing non-interest expense less amortization of core deposit intangibles by the sum of net interest income on a tax equivalent basis and non-interest income excluding adjustments such as merger and acquisition expenses and/or certain gains, losses and other non-interest income and expenses.

Table 1: Key Financial Measures

	As of or for the Three Months Ended September 30,				As of or for the Nine Months Ended September 30,
	2024		2023		2024		2023
	(Dollars in thousands, except per share data)
Total assets	$	22,823,117	$	21,950,638	$	22,823,117	$	21,950,638
Loans receivable	14,823,979		14,271,833		14,823,979		14,271,833
Allowance for credit losses	(312,574)		(285,562)		(312,574)		(285,562)
Total deposits	16,705,710		16,518,745		16,705,710		16,518,745
Total stockholders’ equity	3,959,789		3,654,874		3,959,789		3,654,874
Net income	100,038		98,453		301,677		306,686
Basic earnings per share	0.50		0.49		1.51		1.51
Diluted earnings per share	0.50		0.49		1.51		1.51
Book value per share	19.91		18.06		19.91		18.06
Tangible book value per share (non-GAAP)(1)	12.67		10.90		12.67		10.90
Annualized net interest margin - FTE	4.28%		4.19%		4.23%		4.28%
Efficiency ratio	41.42		45.53		42.91		44.76
Efficiency ratio, as adjusted (non-GAAP)(2)	41.66		46.44		42.87		44.86
Return on average assets	1.74		1.78		1.77		1.84
Return on average common equity	10.23		10.65		10.53		11.32

(1)See Table 21 for the non-GAAP tabular reconciliation.

(2)See Table 25 for the non-GAAP tabular reconciliation.

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Overview

Results of Operations for the Three Months Ended September 30, 2024 and 2023

Our net income increased $1.6 million, or 1.6%, to $100.0 million for the three-month period ended September 30, 2024, from $98.5 million for the same period in 2023. On a diluted earnings per share basis, our earnings were $0.50 per share for the three-month period ended September 30, 2024 compared to $0.49 per share for the three-month period ended September 30, 2023. The Company recorded $18.9 million in credit loss expense for the quarter ended September 30, 2024. The $18.9 million of credit loss expense includes $18.2 million in provision for credit losses on loans. Of the $18.2 million provision for credit losses on loans recorded, $16.7 million was used to establish a hurricane reserve for loans located in the Federal Emergency Management Agency ("FEMA") disaster areas impacted by Hurricane Helene, which made landfall during the quarter. The hurricane related reserve had a six-cent impact to diluted earnings per share for the quarter. The remaining portion of the provision was related to loan growth. The Company also recorded a $1.0 million provision for credit losses on unfunded commitments, and we recorded a $330,000 recovery of credit losses on available-for-sale investments due to an improvement in the unrealized losses for one of our subordinated debt investments. During the three months ended September 30, 2024, the Company recorded a $1.4 million increase in the fair value of marketable securities.

Total interest income increased by $38.6 million, or 13.1%, and non-interest expense decreased $4.7 million, or 4.1%. This was partially offset by a $25.3 million, or 27.4% increase in total interest expense and a $634,000, or 1.5%, decrease in non-interest income. These fluctuations are primarily due to the high interest rate environment. The increase in interest income resulted from a $32.5 million, or 13.0%, increase in loan interest income and a $9.8 million, or 419.6%, increase in interest income on deposits at other banks, which was partially offset by a $3.7 million, or 8.7%, decrease in investment interest income. The decrease in non-interest expense was due to a decrease of $5.7 million, or 8.8%, in salaries and employee benefits and a decrease of $917,000, or 5.9%, in occupancy and equipment expense, which was partially offset by an increase of $1.9 million, or 7.3%, in other operating expenses. The increase in interest expense was primarily due to a $19.1 million, or 24.3%, increase in interest on deposits and a $6.2 million, or 76.2%, increase in interest on FHLB and other borrowed funds. The decrease in non-interest income was primarily due to a $3.1 million, or 69.1%, decrease in the fair value adjustment for marketable securities which was partially offset by a $1.3 million, or 41.7%, increase in mortgage lending income and a $1.3 million, or 21.6%, increase in other income.

Our net interest margin increased from 4.19% for the three-month period ended September 30, 2023 to 4.28% for the three-month period ended September 30, 2024. The yield on interest earning assets was 6.60% and 6.09% for the three months ended September 30, 2024 and 2023, respectively, and average interest earning assets increased from $19.26 billion to $20.23 billion. The increase in average interest earning assets is primarily due to a $706.1 million increase in average interest-bearing balances due from banks and a $571.2 million increase in average loans receivable, partially offset by a $315.8 million decrease in average investment securities. During the third quarter of 2024, the Company held excess liquidity of approximately $500.0 million which was dilutive to the net interest margin by approximately 10 basis points. For the three months ended September 30, 2024 and 2023, we recognized $1.9 million and $2.4 million, respectively, in total net accretion for acquired loans and deposits. The reduction in accretion was dilutive to the net interest margin by two basis points. We recognized $573,000 in event income for the three-months ended September 30, 2024 compared to $521,000 for the three-months ended September 30, 2023. The remaining increase in the net interest margin was due to an increase in interest income resulting from an increase in average interest-bearing assets at higher interest rates primarily as a result of the high interest rate environment.

Our efficiency ratio was 41.42% for the three months ended September 30, 2024, compared to 45.53% for the same period in 2023. For the third quarter of 2024, our efficiency ratio, as adjusted (non-GAAP), was 41.66%, compared to 46.44% reported for the third quarter of 2023. (See Table 25 for the non-GAAP tabular reconciliation).

Our annualized return on average assets was 1.74% for the three months ended September 30, 2024, compared to 1.78% for the same period in 2023. (See Table 22 for the related non-GAAP financial measures and tabular reconciliation). Our annualized return on average common equity was 10.23% and 10.65% for the three months ended September 30, 2024, and 2023, respectively. (See Table 23 for the related non-GAAP financial measures and tabular reconciliation).

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Results of Operations for the Nine Months Ended September 30, 2024 and 2023

Our net income decreased $5.0 million, or 1.63%, to $301.7 million for the nine-month period ended September 30, 2024, from $306.7 million for the same period in 2023. On a diluted earnings per share basis, our earnings were $1.51 per share for both the nine-month periods ended September 30, 2024 and 2023. The Company recorded $31.4 million in credit loss expense for the nine-month period ended September 30, 2024, The $31.4 million of credit loss expense includes $31.7 million in provision for credit losses on loans, which was partially offset by a a $330,000 recovery of credit losses on available-for-sale investments due to an improvement in the unrealized losses for one of our subordinated debt investments. Of the $31.7 million provision for credit losses on loans recorded, $16.7 million was used to establish a hurricane reserve for loans located in the FEMA disaster areas impacted by Hurricane Helene, which made landfall during the third quarter of 2024. The hurricane related reserve had a six-cent impact to diluted earnings per share. The remaining portion of the provision was related to loan growth. During the nine months ended September 30, 2024, the Company recorded a $2.1 million gain on sale of building from our Texas region, a $2.1 million increase in the fair value of marketable securities and $162,000 in bank owned life insurance bank owned life insurance ("BOLI") death benefits, partially offset by $2.3 million of Federal Deposit Insurance Corporation ("FDIC") special assessment and a $2.0 million deferred tax asset write-down.

Total interest income increased by $108.2 million, or 12.5% and non-interest expense decreased by $11.0 million, or 3.2%. This was partially offset by a $100.8 million, or 41.2% increase in total interest expense. These fluctuations are primarily due to the high interest rate environment. The increase in interest income resulted from a $92.0 million, or 12.6%, increase in loan interest income and a $24.4 million, or 227.6%, increase in interest income on deposits at other banks, partially offset by an $8.2 million, or 6.4%, decrease in investment income. The decrease in non-interest expense was due to a decrease of $13.3 million, or 6.9%, in salaries and employee benefits and a decrease of $1.8 million, or 4.0%, in occupancy and equipment expense, which was partially offset by an increase of $4.3 million, or 5.4%, in other operating expenses. The increase in interest expense was primarily due to a $78.1 million, or 37.5%, increase in interest on deposits, a $22.0 million, or 104.9%, increase in interest on FHLB and other borrowed funds and a $769,000, or 23.1%, increase in interest on securities sold under agreements to repurchase.

Our net interest margin decreased from 4.28% for the nine-month period ended September 30, 2023 to 4.23% for the nine-month period ended September 30, 2024. The yield on interest earning assets was 6.52% and 5.95% for the nine months ended September 30, 2024 and 2023, respectively, as average interest earning assets increased from $19.63 billion to $20.16 billion. The increase in average interest earning assets is primarily due to a $564.7 million increase in average interest-bearing balances due from banks, a $326.0 million increase in average loans receivable and a $1.1 million increase in average federal funds sold, partially offset by a $368.8 million decrease in average investment securities. During the nine-month period ended September 30, 2024, the Company held excess liquidity of approximately $500.0 million which was dilutive to the net interest margin by approximately 10 basis points. For the nine months ended September 30, 2024 and 2023, we recognized $6.5 million and $8.3 million, respectively, in total net accretion for acquired loans and deposits. The reduction in accretion was dilutive to the net interest margin by one basis point. We recognized $3.4 million in event income for the nine-months ended September 30, 2024 compared to $2.8 million for the nine-months ended September 30, 2023.

Our efficiency ratio was 42.91% for the nine months ended September 30, 2024, compared to 44.76% for the same period in 2023. For the nine months ended September 30, 2024, our efficiency ratio, as adjusted (non-GAAP), was 42.87%, compared to 44.86% reported for the third quarter of 2023. (See Table 25 for the non-GAAP tabular reconciliation).

Our annualized return on average assets was 1.77% for the nine months ended September 30, 2024, compared to 1.84% for the same period in 2023. (See Table 22 for the related non-GAAP financial measures and tabular reconciliation). Our annualized return on average common equity was 10.53% and 11.32% for the nine months ended September 30, 2024, and 2023, respectively. (See Table 23 for the related non-GAAP financial measures and tabular reconciliation).

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Financial Condition as of and for the Period Ended September 30, 2024 and December 31, 2023

Our total assets as of September 30, 2024 increased $166.5 million to $22.82 billion from $22.66 billion reported as of December 31, 2023. Cash and cash equivalents increased $17.5 million for the nine months ended September 30, 2024. Our loan portfolio balance increased to $14.82 billion as of September 30, 2024 from $14.42 billion at December 31, 2023. The increase in loans was primarily due to $350.4 million of organic loan growth in our community banking footprint and $48.9 million of organic loan growth from our Centennial Commercial Finance Group ("Centennial CFG") franchise. These increases were partially offset by a $242.1 million decrease in investment securities resulting from paydowns and maturities during the first nine months of 2024. Total deposits decreased $82.0 million to $16.71 billion as of September 30, 2024 from $16.79 billion as of December 31, 2023. Stockholders’ equity increased $168.7 million to $3.96 billion as of September 30, 2024, compared to $3.79 billion as of December 31, 2023. The $168.7 million increase in stockholders’ equity is primarily associated with the $301.7 million in net income and $54.2 million in other comprehensive income for the nine months ended September 30, 2024, which was partially offset by the $111.2 million of shareholder dividends paid and stock repurchases of $83.6 million.

Our non-performing loans were $101.1 million, or 0.68% of total loans as of September 30, 2024, compared to $64.1 million, or 0.44% of total loans, as of December 31, 2023. The allowance for credit losses as a percentage of non-performing loans decreased to 309.16% as of September 30, 2024, from 449.66% as of December 31, 2023. Non-performing loans from our Arkansas franchise were $30.4 million at September 30, 2024 compared to $15.4 million as of December 31, 2023. Non-performing loans from our Florida franchise were $40.8 million at September 30, 2024 compared to $9.3 million as of December 31, 2023. Non-performing loans from our Texas franchise were $20.0 million at September 30, 2024 compared to $33.5 million as of December 31, 2023. Non-performing loans from our Alabama franchise were $391,000 at September 30, 2024 compared to $413,000 as of December 31, 2023. Non-performing loans from our Shore Premier Finance ("SPF") franchise were $6.8 million at September 30, 2024 compared to $2.8 million as of December 31, 2023. Non-performing loans from our Centennial CFG franchise were $2.8 million at September 30, 2024 compared to $2.7 million as of December 31, 2023.

As of September 30, 2024, our non-performing assets increased to $144.2 million, or 0.63% of total assets, from $95.4 million, or 0.42% of total assets, as of December 31, 2023. Non-performing assets from our Arkansas franchise were $30.4 million at September 30, 2024 compared to $15.5 million as of December 31, 2023. Non-performing assets from our Florida franchise were $48.1 million at September 30, 2024 compared to $17.3 million as of December 31, 2023. Non-performing assets from our Texas franchise were $33.0 million at September 30, 2024 compared to $33.8 million as of December 31, 2023. Non-performing assets from our Alabama franchise were $391,000 at September 30, 2024 compared to $413,000 as of December 31, 2023. Non-performing assets from our SPF franchise were $6.8 million at September 30, 2024 compared to $2.8 million as of December 31, 2023. Non-performing assets from our Centennial CFG franchise were $25.5 million at September 30, 2024 compared to $25.6 million as of December 31, 2023.

The $2.8 million balance of non-accrual loans for our Centennial CFG Capital Markets Group consists of two loans that are assessed for credit risk by the Federal Reserve under the Shared National Credit Program. The loans are not current on either principal or interest, and we have reversed any interest that had accrued subsequent to the non-accrual date designated by the Federal Reserve. Any interest payments that are received will be applied to the principal balance. In addition, the $22.8 million balance of foreclosed assets held for sale for our Centennial CFG Property Finance Group consists of an office building located in California. This represents the largest component of the Company's $43.0 million in foreclosed assets held for sale.

Critical Accounting Policies and Estimates

Overview. We prepare our consolidated financial statements based on the selection of certain accounting policies, generally accepted accounting principles and customary practices in the banking industry. These policies, in certain areas, require us to make significant estimates and assumptions. Our accounting policies are described in detail in the notes to our consolidated financial statements included as part of this document.

We consider a policy critical if (i) the accounting estimate requires assumptions about matters that are highly uncertain at the time of the accounting estimate; and (ii) different estimates that could reasonably have been used in the current period, or changes in the accounting estimate that are reasonably likely to occur from period to period, would have a material impact on our financial statements. Using these criteria, we believe that the accounting policies most critical to us are those associated with our lending practices, including the accounting for the allowance for credit losses, foreclosed assets, investments, intangible assets, income taxes and stock options.

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Credit Losses. We account for credit losses in accordance with ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASC 326" or "CECL"). The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with Topic 842 on leases.

Investments – Available-for-sale. Securities available-for-sale ("AFS") are reported at fair value with unrealized holding gains and losses reported as a separate component of stockholders’ equity and other comprehensive income (loss), net of taxes. Securities that are held as available-for-sale are used as a part of our asset/liability management strategy. Securities that may be sold in response to interest rate changes, changes in prepayment risk, the need to increase regulatory capital, and other similar factors are classified as available-for-sale. The Company evaluates all securities quarterly to determine if any securities in a loss position require a provision for credit losses in accordance with ASC 326. The Company first assesses whether it intends to sell or is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For securities that do not meet this criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, and changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. The Company has made the election to exclude accrued interest receivable on AFS securities from the estimate of credit losses and report accrued interest separately on the consolidated balance sheets. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectability of a security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

Investments – Held-to-Maturity. Debt securities held-to-maturity ("HTM"), which include any security for which we have the positive intent and ability to hold until maturity, are reported at historical cost adjusted for amortization of premiums and accretion of discounts. Premiums and discounts are amortized/accreted to the call date to interest income using the constant effective yield method over the estimated life of the security. The Company evaluates all securities quarterly to determine if any securities in a loss position require a provision for credit losses in accordance with ASC 326. The Company measures expected credit losses on HTM securities on a collective basis by major security type, with each type sharing similar risk characteristics. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The Company has made the election to exclude accrued interest receivable on HTM securities from the estimate of credit losses and report accrued interest separately on the consolidated balance sheets. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectability of a security is confirmed.

Loans Receivable and Allowance for Credit Losses. Except for loans acquired during our acquisitions, substantially all of our loans receivable are reported at their outstanding principal balance adjusted for any charge-offs, as it is management’s intent to hold them for the foreseeable future or until maturity or payoff, except for mortgage loans held for sale. Interest income on loans is accrued over the term of the loans based on the principal balance outstanding.

The allowance for credit losses on loans receivable is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the uncollectability of a loan balance is confirmed and expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off.

Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in the national unemployment rate, gross domestic product, rental vacancy rate, housing price index and rental vacancy rate index.

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The allowance for credit losses is measured based on call report segment as these types of loans exhibit similar risk characteristics. The identified loan segments are as follows:

•1-4 family construction

•All other construction

•1-4 family revolving home equity lines of credit (“HELOC”) & junior liens

•1-4 family senior liens

•Multifamily

•Owner occupies commercial real estate

•Non-owner occupied commercial real estate

•Commercial & industrial, agricultural, non-depository financial institutions, purchase/carry securities, other

•Consumer auto

•Other consumer

•Other consumer - Shore Premier Finance ("SPF")

The allowance for credit losses for each segment is measured through the use of the discounted cash flow method ("DCF"). Loans evaluated individually that are considered to be collateral dependent are not included in the collective evaluation. For these loans, where the Company has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the loan to be provided substantially through the operation or sale of the collateral, the allowance for credit losses is measured based on the difference between the fair value of the collateral, net of estimated costs to sell, and the amortized cost basis of the loan as of the measurement date. When repayment is expected to be from the operation of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the loan exceeds the present value of expected cash flows from the operation of the collateral. The allowance for credit losses may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the loan, net of estimated costs to sell. For individually analyzed loans which are not considered to be collateral dependent, an allowance is recorded based on the loss rate for the respective pool within the collective evaluation.

Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies:

•Management has a reasonable expectation at the reporting date that restructured loans made to borrowers experiencing financial difficulty will be executed with an individual borrower.

•The extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company.

Management qualitatively adjusts model results for risk factors that are not considered within our modeling processes but are nonetheless relevant in assessing the expected credit losses within our loan pools. These qualitative factors ("Q-Factors") and other qualitative adjustments may increase or decrease management's estimate of expected credit losses by a calculated percentage or amount based upon the estimated level of risk. The various risks that may be considered in making Q-Factor and other qualitative adjustments include, among other things, the impact of (i) changes in lending policies, procedures and strategies; (ii) changes in nature and volume of the portfolio; (iii) staff experience; (iv) changes in volume and trends in classified loans, delinquencies and nonaccruals; (v) concentration risk; (vi) trends in underlying collateral values; (vii) external factors such as competition, legal and regulatory environment; (viii) changes in the quality of the loan review system; and (ix) economic conditions.

Loans are placed on non-accrual status when management believes that the borrower’s financial condition, after giving consideration to economic and business conditions and collection efforts, is such that collection of interest is doubtful, or generally when loans are 90 days or more past due. Loans are charged against the allowance for credit losses when management believes that the collectability of the principal is unlikely. Accrued interest related to non-accrual loans is generally charged against the allowance for credit losses when accrued in prior years and reversed from interest income if accrued in the current year. Interest income on non-accrual loans may be recognized to the extent cash payments are received, although the majority of payments received are usually applied to principal. Non-accrual loans are generally returned to accrual status when principal and interest payments are less than 90 days past due, the customer has made required payments for at least six months, and we reasonably expect to collect all principal and interest.

56

The Company has purchased loans, some of which have experienced more than insignificant credit deterioration since origination. Purchase credit deteriorated (“PCD”) loans are recorded at the amount paid. An allowance for credit losses is determined using the same methodology as other loans. The initial allowance for credit losses determined on a collective basis is allocated to individual loans. The sum of the loan’s purchase price and allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the allowance for credit losses are recorded through the provision for credit loss.

Allowance for Credit Losses on Off-Balance Sheet Credit Exposures. The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on off-balance sheet credit exposures is adjusted as a provision for or reversal of credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life.

Foreclosed Assets Held for Sale. Real estate and personal property acquired through or in lieu of loan foreclosure are to be sold and are initially recorded at fair value at the date of foreclosure, establishing a new cost basis. Valuations are periodically performed by management, and the real estate and personal property are carried at fair value less costs to sell. Gains and losses from the sale of other real estate and personal property are recorded in non-interest income, and expenses used to maintain the properties are included in non-interest expenses.

Intangible Assets. Intangible assets consist of goodwill and core deposit intangibles. Goodwill represents the excess purchase price over the fair value of net assets acquired in business acquisitions. The core deposit intangible represents the excess intangible value of acquired deposit customer relationships as determined by valuation specialists. The core deposit intangibles are being amortized over 48 months to 121 months on a straight-line basis. Goodwill is not amortized but rather is evaluated for impairment on at least an annual basis. We perform an annual impairment test of goodwill and core deposit intangibles as required by FASB ASC 350, Intangibles - Goodwill and Other, in the fourth quarter or more often if events and circumstances indicate there may be an impairment.

Income Taxes. We account for income taxes in accordance with income tax accounting guidance (ASC 740, Income Taxes). The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. We determine deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax basis of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur.

Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term “more likely than not” means a likelihood of more than 50 percent; the terms “examined” and “upon examination” also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances and information available at the reporting date and is subject to the management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized.

Both we and our subsidiary file consolidated tax returns. Our subsidiary provides for income taxes on a separate return basis, and remits to us amounts determined to be currently payable.

Stock Compensation. In accordance with FASB ASC 718, Compensation - Stock Compensation, and FASB ASC 505-50, Equity-Based Payments to Non-Employees, the fair value of each option award is estimated on the date of grant. We recognize compensation expense for the grant-date fair value of the option award over the vesting period of the award.

57

Acquisitions

Acquisition of Happy Bancshares, Inc.

The Company's most recent acquisition occurred on April 1, 2022, when the Company completed the acquisition of Happy Bancshares, Inc. (“Happy”), and merged Happy State Bank into Centennial Bank. For additional discussion regarding the acquisition of Happy, see "Management's Discussion and Analysis of Financial Condition and Results of Operations" and Note 2 "Business Combinations" in the Notes to Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2023.

Branches

As opportunities arise, we will continue to open new (commonly referred to as de novo) branches in our current markets and in other attractive market areas.

As of September 30, 2024, we had 218 branch locations. There were 76 branches in Arkansas, 78 branches in Florida, 58 branches in Texas, five branches in Alabama and one branch in New York City.

Results of Operations

For the three and nine months ended September 30, 2024 and 2023

Our net income increased $1.6 million, or 1.6%, to $100.0 million for the three-month period ended September 30, 2024, from $98.5 million for the same period in 2023. On a diluted earnings per share basis, our earnings were $0.50 per share for the three-month period ended September 30, 2024 compared to $0.49 per share for the three-month period ended September 30, 2023. The Company recorded $18.9 million in credit loss expense for the quarter ended September 30, 2024. The $18.9 million of credit loss expense includes $18.2 million in provision for credit losses on loans. Of the $18.2 million provision for credit losses on loans recorded, $16.7 million was used to establish a hurricane reserve for loans located in the FEMA disaster areas impacted by Hurricane Helene, which made landfall during the quarter. The hurricane related reserve had a six-cent impact to diluted earnings per share for the quarter. The remaining portion of the provision was related to loan growth. The Company also recorded a $1.0 million provision for credit losses on unfunded commitments, and we recorded a $330,000 recovery of credit losses on available-for-sale investments due to an improvement in the unrealized losses for one of our subordinated debt investments. During the three months ended September 30, 2024, the Company recorded a $1.4 million increase in the fair value of marketable securities.

Our net income decreased $5.0 million, or 1.63%, to $301.7 million for the nine-month period ended September 30, 2024, from $306.7 million for the same period in 2023. On a diluted earnings per share basis, our earnings were $1.51 per share for both the nine-month periods ended September 30, 2024 and 2023. The Company recorded $31.4 million in credit loss expense for the nine-month period ended September 30, 2024, The $31.4 million of credit loss expense includes $31.7 million in provision for credit losses on loans, which was partially offset by a a $330,000 recovery of credit losses on available-for-sale investments due to an improvement in the unrealized losses for one of our subordinated debt investments. Of the $31.7 million provision for credit losses on loans recorded, $16.7 million was used to establish a hurricane reserve for loans located in the FEMA disaster areas impacted by Hurricane Helene, which made landfall during the third quarter of 2024. The hurricane related reserve had a six-cent impact to diluted earnings per share. The remaining portion of the provision was related to loan growth. During the nine months ended September 30, 2024, the Company recorded a $2.1 million gain on sale of building from our Texas region, a $2.1 million increase in the fair value of marketable securities and $162,000 in bank owned life insurance BOLI death benefits, partially offset by $2.3 million of FDIC special assessment and a $2.0 million deferred tax asset write-down.

Net Interest Income

Net interest income, our principal source of earnings, is the difference between the interest income generated by earning assets and the total interest cost of the deposits and borrowings obtained to fund those assets. Factors affecting the level of net interest income include the volume of earning assets and interest-bearing liabilities, yields earned on loans and investments, rates paid on deposits and other borrowings, the level of non-performing loans and the amount of non-interest-bearing liabilities supporting earning assets. Net interest income is analyzed in the discussion and tables below on a fully taxable equivalent basis. The adjustment to convert certain income to a fully taxable equivalent basis consists of dividing tax-exempt income by one minus the combined federal and state income tax rate (24.989% for 2024 and 24.6735% for 2023).

58

The Federal Reserve Board sets various benchmark rates, including the Federal Funds rate, and thereby influences the general market rates of interest, including the deposit and loan rates offered by financial institutions. The Federal Reserve increased the target rate four times during 2023. First, on February 1, 2023, the target rate was increased to 4.50% to 4.75%, second, on March 22, 2023, the target rate was increased to 4.75% to 5.00%, third, on May 3, 2023, the target rate was increased to 5.00% to 5.25% and fourth, on July 26, 2023, the target rate was increased to 5.25% to 5.50%. On September 18, 2024, the Federal Reserve reduced the target rate to 4.75% to 5.00%.

Our net interest margin increased from 4.19% for the three-month period ended September 30, 2023 to 4.28% for the three-month period ended September 30, 2024. The yield on interest earning assets was 6.60% and 6.09% for the three months ended September 30, 2024 and 2023, respectively, and average interest earning assets increased from $19.26 billion to $20.23 billion. The increase in average interest earning assets is primarily due to a $706.1 million increase in average interest-bearing balances due from banks and a $571.2 million increase in average loans receivable, partially offset by a $315.8 million decrease in average investment securities. During the third quarter of 2024, the Company held excess liquidity of approximately $500.0 million which was dilutive to the net interest margin by 10 basis points. For the three months ended September 30, 2024 and 2023, we recognized $1.9 million and $2.4 million, respectively, in total net accretion for acquired loans and deposits. The reduction in accretion was dilutive to the net interest margin by two basis points. We recognized $573,000 in event income for the three-months ended September 30, 2024 compared to $521,000 for the three-months ended September 30, 2023. The remaining increase in the net interest margin was due to an increase in interest income resulting from an increase in average interest-bearing assets at higher interest rates primarily as a result of the high interest rate environment.

Our net interest margin decreased from 4.28% for the nine-month period ended September 30, 2023 to 4.23% for the nine-month period ended September 30, 2024. The yield on interest earning assets was 6.52% and 5.95% for the nine months ended September 30, 2024 and 2023, respectively, as average interest earning assets increased from $19.63 billion to $20.16 billion. The increase in average interest earning assets is primarily due to a $564.7 million increase in average interest-bearing balances due from banks, a $326.0 million increase in average loans receivable and a $1.1 million increase in average federal funds sold, partially offset by a $368.8 million decrease in average investment securities. During the nine-month period ended September 30, 2024, the Company held excess liquidity of approximately $500.0 million which was dilutive to the net interest margin by 10 basis points. For the nine months ended September 30, 2024 and 2023, we recognized $6.5 million and $8.3 million, respectively, in total net accretion for acquired loans and deposits. The reduction in accretion was dilutive to the net interest margin by one basis point. We recognized $3.4 million in event income for the nine-months ended September 30, 2024 compared to $2.8 million for the nine-months ended September 30, 2023.

Net interest income on a fully taxable equivalent basis increased $14.6 million, or 7.2%, to $217.8 million for the three-month period ended September 30, 2024, from $203.2 million for the same period in 2023. This increase in net interest income for the three-month period ended September 30, 2024 was the result of a $39.9 million increase in interest income, which was partially offset by a $25.3 million increase in interest expense, on a fully taxable equivalent basis. The $39.9 million increase in interest income was primarily the result of the high interest rate environment. The higher yield on earning assets resulted in an increase in interest income of approximately $22.9 million, in addition to an increase of $17.0 million in interest income due to the change in average interest earning asset balances. The $25.3 million increase in interest expense is also primarily the result of the high interest rate environment. The higher rates on interest bearing liabilities resulted in an increase in interest expense of approximately $14.2 million, in addition to an increase in average interest bearing liabilities which increased interest expense by approximately $11.1 million.

Net interest income on a fully taxable equivalent basis increased $9.2 million, or 1.5%, to $637.8 million for the nine-month period ended September 30, 2024, from $628.6 million for the same period in 2023. This increase in net interest income for the nine-month period ended September 30, 2024 was the result of a $110.0 million increase in interest income, which was partially offset by a $100.8 million increase in interest expense, on a fully taxable equivalent basis. The $110.0 million increase in interest income was primarily the result of the high interest rate environment. The higher yield on earning assets resulted in an increase in interest income of approximately $80.6 million, in addition to an increase of $29.4 million in interest income due to the change in average interest earning asset balances. The $100.8 million increase in interest expense is also primarily the result of the high interest rate environment. The higher rates on interest bearing liabilities resulted in an increase in interest expense of approximately $70.6 million, in addition to an increase in average interest bearing liabilities which increased interest expense by approximately $30.2 million.

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Tables 2 and 3 reflect an analysis of net interest income on a fully taxable equivalent basis for the three and nine months ended September 30, 2024 and 2023, as well as changes in the fully taxable equivalent net interest margin for the three and nine months ended September 30, 2024 compared to the same period in 2023.

Table 2: Analysis of Net Interest Income

	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
	(Dollars in thousands)
Interest income	$	332,845		$	294,262		$	977,063		$	868,833
Fully taxable equivalent adjustment	2,616			1,293			6,136			4,415
Interest income – fully taxable equivalent	335,461			295,555			983,199			873,248
Interest expense	117,625			92,325			345,431			244,658
Net interest income – fully taxable equivalent	$	217,836		$	203,230		$	637,768		$	628,590
Yield on earning assets – fully taxable equivalent	6.60		%	6.09		%	6.52		%	5.95		%
Cost of interest-bearing liabilities	3.17			2.69			3.14			2.38
Net interest spread – fully taxable equivalent	3.43			3.40			3.38			3.57
Net interest margin – fully taxable equivalent	4.28			4.19			4.23			4.28

Table 3: Changes in Fully Taxable Equivalent Net Interest Margin

	Three Months Ended September 30,		Nine Months Ended September 30,
	2024 vs. 2023		2024 vs. 2023
	(In thousands)
Increase in interest income due to change in earning assets	$	16,977	$	29,381
Increase in interest income due to change in earning asset yields	22,929		80,570
Increase in interest expense due to change in interest-bearing liabilities	(11,129)		(30,161)
Increase in interest expense due to change in interest rates paid on interest-bearing liabilities	(14,171)		(70,612)
Increase in net interest income	$	14,606	$	9,178

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Table 4 shows, for each major category of earning assets and interest-bearing liabilities, the average amount outstanding, the interest income or expense on that amount and the average rate earned or expensed for the three and nine months ended September 30, 2024 and 2023, 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. The analysis is presented on a fully taxable equivalent basis. Non-accrual loans were included in average loans for the purpose of calculating the rate earned on total loans.

Table 4: Average Balance Sheets and Net Interest Income Analysis

	Three Months Ended September 30,
	2024						2023
	Average Balance		Income / Expense		Yield / Rate		Average Balance		Income / Expense		Yield / Rate
	(Dollars in thousands)
ASSETS
Earnings assets
Interest-bearing balances due from banks	$	903,456	$	12,096	5.33	%	$	197,336	$	2,328	4.68	%
Federal funds sold	4,629		62		5.33		4,859		82		6.70
Investment securities – taxable	3,391,838		31,006		3.64		3,598,513		34,520		3.81
Investment securities – non-taxable	1,163,568		10,181		3.48		1,272,680		9,034		2.82
Loans receivable	14,762,667		282,116		7.60		14,191,461		249,591		6.98
Total interest-earning assets	20,226,158		335,461		6.60	%	19,264,849		295,555		6.09	%
Non-earning assets	2,667,626						2,637,585
Total assets	$	22,893,784					$	21,902,434
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts	$	11,095,572	$	79,232	2.84	%	$	10,923,936	68,067		2.47	%
Time deposits	1,769,952		18,553		4.17		1,319,126		10,631		3.20
Total interest-bearing deposits	12,865,524		97,785		3.02		12,243,062		78,698		2.55
Federal funds purchased	43		1		9.25		54		1		7.35
Securities sold under agreement to repurchase	157,178		1,335		3.38		154,687		1,344		3.45
FHLB and other borrowed funds	1,300,876		14,383		4.40		773,345		8,161		4.19
Subordinated debentures	439,467		4,121		3.73		440,054		4,121		3.72
Total interest-bearing liabilities	14,763,088		117,625		3.17	%	13,611,202		92,325		2.69	%
Non-interest-bearing liabilities
Non-interest-bearing deposits	3,993,187						4,434,394
Other liabilities	247,797						189,499
Total liabilities	19,004,072						18,235,095
Stockholders’ equity	3,889,712						3,667,339
Total liabilities and stockholders’ equity	$	22,893,784					$	21,902,434
Net interest spread					3.43	%					3.40	%
Net interest income and margin			$	217,836	4.28	%			$	203,230	4.19	%

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	Nine Months Ended September 30,
	2024						2023
	Average Balance		Income / Expense		Yield / Rate		Average Balance		Income / Expense		Yield / Rate
	(Dollars in thousands)
ASSETS
Earnings assets
Interest-bearing balances due from banks	$	878,368	$	35,188	5.35	%	$	313,637	$	10,742	4.58	%
Federal funds sold	4,688		182		5.19		3,577		156		5.83
Investment securities – taxable	3,436,874		96,822		3.76		3,726,710		104,559		3.75
Investment securities – non-taxable	1,202,003		29,077		3.23		1,280,947		27,848		2.91
Loans receivable	14,633,382		821,930		7.50		14,307,358		729,943		6.82
Total interest-earning assets	20,155,315		983,199		6.52	%	19,632,229		873,248		5.95	%
Non-earning assets	2,662,627						2,640,096
Total assets	$	22,817,942					$	22,272,325
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts	$	11,084,397	$	232,757	2.80	%	$	11,246,350	185,560		2.21	%
Time deposits	1,729,400		53,317		4.12		1,189,620		22,447		2.52
Total interest-bearing deposits	12,813,797		286,074		2.98		12,435,970		208,007		2.24
Federal funds purchased	26		1		5.14		59		3		6.80
Securities sold under agreement to repurchase	163,013		4,102		3.36		144,603		3,333		3.08
FHLB and other borrowed funds	1,301,005		42,914		4.41		701,748		20,947		3.99
Subordinated debentures	439,613		12,340		3.75		440,199		12,368		3.76
Total interest-bearing liabilities	14,717,454		345,431		3.14	%	13,722,579		244,658		2.38	%
Non-interest-bearing liabilities
Non-interest-bearing deposits	4,031,447						4,729,515
Other liabilities	242,422						197,498
Total liabilities	18,991,323						18,649,592
Stockholders’ equity	3,826,619						3,622,733
Total liabilities and stockholders’ equity	$	22,817,942					$	22,272,325
Net interest spread					3.38	%					3.57	%
Net interest income and margin			$	637,768	4.23	%			$	628,590	4.28	%

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Table 5 shows changes in interest income and interest expense resulting from changes in volume and changes in interest rates for the three and nine months ended September 30, 2024 compared to the same period in 2023, on a fully taxable basis. 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.

Table 5: Volume/Rate Analysis

	Three Months Ended September 30,						Nine Months Ended September 30,
	2024 over 2023						2024 over 2023
	Volume		Yield / Rate		Total		Volume		Yield / Rate		Total
	(In thousands)
Increase (decrease) in:
Interest income:
Interest-bearing balances due from banks	$	9,413	$	355	$	9,768	$	22,341	$	2,105	$	24,446
Federal funds sold	(4)		(16)		(20)		45		(19)		26
Investment securities – taxable	(1,931)		(1,583)		(3,514)		(8,163)		426		(7,737)
Investment securities – non-taxable	(823)		1,970		1,147		(1,785)		3,014		1,229
Loans receivable	10,322		22,203		32,525		16,943		75,044		91,987
Total interest income	16,977		22,929		39,906		29,381		80,570		109,951
Interest expense:
Interest-bearing transaction and savings deposits	1,085		10,080		11,165		(2,709)		49,906		47,197
Time deposits	4,214		3,708		7,922		12,879		17,991		30,870
Federal funds purchased	—		—		—		(1)		(1)		(2)
Securities sold under agreement to repurchase	21		(30)		(9)		447		322		769
FHLB and other borrowed funds	5,815		407		6,222		19,561		2,406		21,967
Subordinated debentures	(6)		6		—		(16)		(12)		(28)
Total interest expense	11,129		14,171		25,300		30,161		70,612		100,773
Increase (decrease) in net interest income	$	5,848	$	8,758	$	14,606	$	(780)	$	9,958	$	9,178

Provision for Credit Losses

Credit Loss Expense: During the three months ended September 30, 2024, the Company recorded $18.9 million in credit loss expense. The $18.9 million of credit loss expense includes $18.2 million in provision for credit losses on loans. Of the $18.2 million provision for credit losses on loans recorded, $16.7 million was used to establish a hurricane reserve for loans located in the FEMA disaster areas impacted by Hurricane Helene, which made landfall during the quarter. The hurricane related reserve had a six-cent impact to diluted earnings per share for the quarter. The remaining portion of the provision was related to loan growth. The Company also recorded a $1.0 million provision for credit losses on unfunded commitments and recorded a $330,000 recovery of credit losses on available-for-sale investments due to an improvement in the unrealized losses for one of our subordinated debt investments. During the nine months ended September 30, 2024, the Company recorded $31.4 million in credit loss expense. The $31.4 million of credit loss expense includes $31.7 million in provision for credit losses on loans, which as partially offset by the $330,000 recovery of credit losses on available-for-sale investments due to an improvement in the unrealized losses for one of our subordinated debt investments. Of the $31.7 million provision for credit losses on loans recorded, $16.7 million was used to establish a hurricane reserve for loans. The remaining portion of the provision was related to loan growth. For both the three and nine month periods ended September 30, 2024, the Company determined the $2.0 million allowance for credit losses on the held-to-maturity portfolio was adequate. Therefore, no additional provision was considered necessary for the HTM portfolio.

Net charge-offs to average total loans was 0.04% and 0.08% for the three months ended September 30, 2024 and 2023, respectively, and net charge-offs to average total loans was 0.07% and 0.10% for the nine months ended September 30, 2024 and 2023, respectively.

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Non-Interest Income

Total non-interest income was $42.8 million and $127.4 million for the three and nine months ended September 30, 2024, compared to $43.4 million and $127.1 million for the same period in 2023. Our recurring non-interest income includes service charges on deposit accounts, other service charges and fees, trust fees, mortgage lending income, insurance commissions, increase in cash value of life insurance, fair value adjustment for marketable securities and dividends.

Table 6 measures the various components of our non-interest income for the three and nine months ended September 30, 2024 and 2023.

Table 6: Non-Interest Income

	Three Months Ended September 30,				2024 Change from 2023				Nine Months Ended September 30,				2024 Change from 2023
	2024		2023						2024		2023
	(Dollars in thousands)
Service charges on deposit accounts	$	9,888	$	10,062	$	(174)	(1.7)	%	$	29,288	$	29,135	$	153	0.5	%
Other service charges and fees	10,490		10,128		362		3.6		31,358		33,766		(2,408)		(7.1)
Trust fees	4,403		4,660		(257)		(5.5)		14,191		13,576		615		4.5
Mortgage lending income	4,437		3,132		1,305		41.7		12,271		8,353		3,918		46.9
Insurance commissions	595		562		33		5.9		1,668		1,606		62		3.9
Increase in cash value of life insurance	1,161		1,170		(9)		(0.8)		3,635		3,485		150		4.3
Dividends from FHLB, FRB, FNBB & other	2,637		2,916		(279)		(9.6)		8,642		8,632		10		0.1
Gain on sale of SBA loans	145		97		48		49.5		399		236		163		69.1
Gain on sale of branches, equipment and other assets, net	32		—		32		100.0		2,076		924		1,152		124.7
Gain on OREO, net	85		—		85		100.0		151		319		(168)		(52.7)
Fair value adjustment for marketable securities	1,392		4,507		(3,115)		(69.1)		2,121		(6,118)		8,239		134.7
Other income	7,514		6,179		1,335		21.6		21,552		33,172		(11,620)		(35.0)
Total non-interest income	$	42,779	$	43,413	$	(634)	(1.5)	%	$	127,352	$	127,086	$	266	0.2	%

Non-interest income decreased $634,000, or 1.5%, to $42.8 million for the three months ended September 30, 2024 from $43.4 million for the same period in 2023. The primary factor that resulted in this decrease was the decreases in fair value adjustment for marketable securities, which was partially offset by increases in other service charges and fees, mortgage lending income and other income.

Additional details for the three months ended September 30, 2024 on some of the more significant changes are as follows:

•The $362,000 increase in other service charges and fees is primarily related to an increase in Centennial CFG property finance loan fees.

•The $1.3 million increase in mortgage lending income is primarily related to an increase in volume of secondary market loans from the lower volume of loans during 2023.

•The $3.1 million decrease in the fair value adjustment for marketable securities is due to the changes in the fair value of marketable securities held by the Company.

•The $1.3 million increase in other income is primarily due to a $737,000 increase in rental income from other real estate owned ("OREO"), a $230,000 increase in investment brokerage fee income and a $705,000 increase in recoveries on historic losses, partially offset by a $338,000 reduction in BOLI death benefit income.

Non-interest income increased $266,000, or 0.2%, to $127.4 million for the nine months ended September 30, 2024 from $127.1 million for the same period in 2023. The primary factors that resulted in this increase were the increases in fair value adjustment for marketable securities, trust fees, mortgage lending income and the gain on sale of branches, equipment and other assets, net, which was partially offset by decreases in other service charges and fees and other income.

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Additional details for the nine months ended September 30, 2024 on some of the more significant changes are as follows:

•The $2.4 million decrease in other service charges and fees is primarily related to decreases in Centennial CFG property finance loan fees and Mastercard income.

•The $614,000 increase in trust fees is primarily related to increases in personal trust fees, employee trust fees, IRA fees and retirement fees.

•The $3.9 million increase in mortgage lending income is primarily related to an increase in volume of secondary market loans from the lower volume of loans during 2023.

•The $1.1 million increase in gain on sale of branches, equipment and other assets, net is primarily due to the sale of a building from our Texas region.

•The $8.2 million increase in the fair value adjustment for marketable securities is due to the changes in the fair value of marketable securities held by the Company.

•The $11.6 million decrease in other income is primarily due to a $9.9 million reduction in income for equity method investments, a $3.0 million reduction in BOLI death benefit income and a $3.5 million decrease in recoveries on historic losses, partially offset by a $2.9 million increase in rental income from OREO and a $1.5 million increase in investment brokerage fee income.

Non-Interest Expense

Non-interest expense primarily consists of salaries and employee benefits, occupancy and equipment, data processing, and other expenses such as advertising, amortization of intangibles, electronic banking expense, FDIC and state assessment, insurance, legal and accounting fees, other professional fees and other expenses.

Table 7 below sets forth a summary of non-interest expense for the three and nine months ended September 30, 2024 and 2023.

Table 7: Non-Interest Expense

	Three Months Ended September 30,				2024 Change from 2023				Nine Months Ended September 30,				2024 Change from 2023
	2024		2023						2024		2023
	(Dollars in thousands)
Salaries and employee benefits	$	58,861	$	64,512	$	(5,651)	(8.8)	%	$	180,198	$	193,536	$	(13,338)	(6.9)	%
Occupancy and equipment	14,546		15,463		(917)		(5.9)		43,505		45,338		(1,833)		(4.0)
Data processing expense	9,088		9,103		(15)		(0.2)		27,170		27,222		(52)		(0.2)
Other operating expenses:
Advertising	1,810		2,295		(485)		(21.1)		5,156		6,624		(1,468)		(22.2)
Amortization of intangibles	2,095		2,477		(382)		(15.4)		6,375		7,432		(1,057)		(14.2)
Electronic banking expense	3,569		3,709		(140)		(3.8)		10,137		10,714		(577)		(5.4)
Directors' fees	362		417		(55)		(13.2)		1,283		1,415		(132)		(9.3)
Due from bank service charges	302		282		20		7.1		860		841		19		2.3
FDIC and state assessment	3,360		2,794		566		20.3		12,172		9,514		2,658		27.9
Insurance	926		878		48		5.5		2,734		2,694		40		1.5
Legal and accounting	1,902		1,514		388		25.6		6,600		4,038		2,562		63.4
Other professional fees	2,062		2,117		(55)		(2.6)		6,406		7,175		(769)		(10.7)
Operating supplies	673		860		(187)		(21.7)		1,969		2,361		(392)		(16.6)
Postage	522		491		31		6.3		1,542		1,578		(36)		(2.3)
Telephone	455		544		(89)		(16.4)		1,369		1,645		(276)		(16.8)
Other expense	9,512		7,306		2,206		30.2		27,250		23,561		3,689		15.7
Total non-interest expense	$	110,045	$	114,762	$	(4,717)	(4.1)	%	$	334,726	$	345,688	$	(10,962)	(3.2)	%

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Non-interest expense decreased $4.7 million, or 4.1%, to $110.0 million for the three months ended September 30, 2024 from $114.8 million for the same period in 2023. The primary factors that resulted in this decrease were the decrease in salaries and employee benefits, occupancy and equipment expense, advertising expense and amortization of intangibles, which were partially offset by increases in FDIC and state assessment expense, legal and accounting expense and other expense.

Additional details for the three months ended September 30, 2024 on some of the more significant changes are as follows:

•The $5.7 million decrease in salaries and employee benefits expense is primarily due to the Company's project to reduce the size of its workforce and a decrease in deferred loan costs.

•The $917,000 decrease in occupancy and equipment expense is primarily due to decreased lease, utility and maintenance expenses.

•The $485,000 decrease in advertising expense is primarily due to a decreased volume of advertising.

•The $382,000 decrease in amortization of intangibles is due to the core deposit intangible ("CDI") from the acquisition of Liberty Bank being fully amortized in 2023.

•The $566,000 increase in FDIC and state assessment expense is primarily due to a true-up which was recorded in September 2023 as a result of an FDIC assessment rate reduction.

•The $388,000 increase in legal and accounting expense is primarily due to ongoing legal matters.

•The $2.2 million increase in other expense is primarily due to increases in OREO expense.

Non-interest expense decreased $11.0 million, or 3.2%, to $334.7 million for the nine months ended September 30, 2024 from $345.7 million for the same period in 2023. The primary factors that resulted in this decrease were the decrease in salaries and employee benefits, occupancy and equipment expense, advertising expense, amortization of intangibles, electronic banking expense and other professional fees, which were partially offset by an increase in FDIC and state assessment, legal and accounting expense and other expense.

Additional details for the nine months ended September 30, 2024 on some of the more significant changes are as follows:

•The $13.3 million decrease in salaries and employee benefits expense is primarily due to the Company's project to reduce the size of its workforce and a decrease in deferred loan costs.

•The $1.8 million decrease in occupancy and equipment expense is primarily due to decreases in lease, utility, maintenance and other occupancy expenses.

•The $1.5 million decrease in advertising expense is primarily due to a decreased volume of advertising.

•The $1.1 million decrease in amortization of intangibles is primarily due to the CDI from the acquisition of Liberty Bank being fully amortized in 2023.

•The $577,000 decrease in electronic banking expense is primarily due to a decrease in debit card processing fees and interchange network expenses.

•The $2.7 million increase in FDIC and state assessment expense is primarily due to the remaining portion of the FDIC special assessment expense being incurred during the second quarter of 2024.

•The $2.6 million increase in legal and accounting expense is primarily due to ongoing legal matters.

•The $770,000 decrease in other professional fees is primarily due to cost saving measures following the acquisition of Happy.

•The $3.7 million increase in other expense is primarily due to an increase in OREO expense and miscellaneous loan costs, partially offset by decreases in travel expenses, reimbursable loan fees and other losses.

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Income Taxes

Income tax expense decreased $1.8 million, or 5.8%, to $29.0 million for the three-month period ended September 30, 2024, from $30.8 million for the same period in 2023. Income tax expense decreased $1.2 million, or 1.3%, to $91.2 million for the nine-month period ended September 30, 2024, from $92.4 million for the same period in 2023. The effective income tax rate was 22.50% and 23.22% for the three and nine months ended September 30, 2024, respectively, compared to 23.85% and 23.15% for the same periods in 2023, respectively. The marginal tax rate was 24.989% and 24.6735% for 2024 and 2023, respectively.

Financial Condition as of and for the Period Ended September 30, 2024 and December 31, 2023

Our total assets as of September 30, 2024 increased $166.5 million to $22.82 billion from $22.66 billion reported as of December 31, 2023. Cash and cash equivalents increased $17.5 million for the nine months ended September 30, 2024. Our loan portfolio balance increased to $14.82 billion as of September 30, 2024 from $14.42 billion at December 31, 2023. The increase in loans was primarily due to $350.4 million of organic loan growth in our community banking footprint and $48.9 million of organic loan growth from our Centennial CFG franchise. These increases were partially offset by a $242.1 million decrease in investment securities resulting from paydowns and maturities during the first nine months of 2024. Total deposits decreased $82.0 million to $16.71 billion as of September 30, 2024 from $16.79 billion as of December 31, 2023. Stockholders’ equity increased $168.7 million to $3.96 billion as of September 30, 2024, compared to $3.79 billion as of December 31, 2023. The $168.7 million increase in stockholders’ equity is primarily associated with the $301.7 million in net income and $54.2 million in other comprehensive income for the nine months ended September 30, 2024, which was partially offset by the $111.2 million of shareholder dividends paid and stock repurchases of $83.6 million.

Loan Portfolio

Loans Receivable

Our loan portfolio averaged $14.76 billion and $14.19 billion during the three months ended September 30, 2024 and 2023, respectively. Our loan portfolio averaged $14.63 billion and $14.31 billion during the nine months ended September 30, 2024 and 2023, respectively. Loans receivable were $14.82 billion and $14.42 billion as of September 30, 2024 and December 31, 2023, respectively.

From December 31, 2023 to September 30, 2024, the Company experienced an increase of approximately $399.3 million in loans. The increase in loans was primarily due to $350.4 million of organic loan growth in our community banking footprint and $48.9 million of organic loan growth from our Centennial CFG franchise.

The most significant components of the loan portfolio were commercial real estate, residential real estate, consumer and commercial and industrial loans. These loans are generally secured by residential or commercial real estate or business or personal property. Although these loans are primarily originated within our franchises in Arkansas, Florida, Texas, Alabama and Centennial CFG, the property securing these loans may not physically be located within our market areas of Arkansas, Florida, Texas, Alabama and New York. Loans receivable were approximately $3.38 billion, $4.10 billion, $3.90 billion, $115.8 million, $1.32 billion and $2.00 billion as of September 30, 2024 in Arkansas, Florida, Texas, Alabama, SPF and Centennial CFG, respectively.

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Table 8 presents our loans receivable balances by category as of September 30, 2024 and December 31, 2023.

Table 8: Loans Receivable

	September 30, 2024		December 31, 2023
	(In thousands)
Real estate:
Commercial real estate loans:
Non-farm/non-residential	$	5,496,536	$	5,549,954
Construction/land development	2,741,419		2,293,047
Agricultural	335,965		325,156
Residential real estate loans:
Residential 1-4 family	1,932,352		1,844,260
Multifamily residential	482,648		435,736
Total real estate	10,988,920		10,448,153
Consumer	1,219,197		1,153,690
Commercial and industrial	2,084,667		2,324,991
Agricultural	352,963		307,327
Other	178,232		190,567
Total loans receivable	$	14,823,979	$	14,424,728

Commercial Real Estate Loans. We originate non-farm and non-residential loans (primarily secured by commercial real estate), construction/land development loans, and agricultural loans, which are generally secured by real estate located in our market areas. Our commercial mortgage loans are generally collateralized by first liens on real estate and amortized (where defined) over a 15 to 30-year period with balloon payments due at the end of one to five years. These loans are generally underwritten by assessing cash flow (debt service coverage), primary and secondary source of repayment, the financial strength of any guarantor, the strength of the tenant (if any), the borrower’s liquidity and leverage, management experience, ownership structure, economic conditions and industry specific trends and collateral. Generally, we will loan up to 85% of the value of improved property, 65% of the value of raw land and 75% of the value of land to be acquired and developed. A first lien on the property and assignment of lease is required if the collateral is rental property, with second lien positions considered on a case-by-case basis.

As of September 30, 2024, we had approximately $1.13 billion of construction/land development loans which were collateralized by land. This consisted of approximately $104.8 million for raw land and approximately $1.02 billion for land with commercial and/or residential lots.

As of September 30, 2024, commercial real estate ("CRE") loans totaled $8.57 billion, or 57.8%, of loans receivable, as compared to $8.17 billion, or 56.7%, of loans receivable, as of December 31, 2023. CRE loans originated in our Arkansas, Florida, Texas, Alabama, SPF and Centennial CFG markets were $2.18 billion, $2.57 billion, $2.19 billion, $46.7 million, zero and $1.59 billion at September 30, 2024, respectively.

Table 9 presents the composition of the funded and unfunded balances of our CRE portfolio by loan type, as of September 30, 2024 and December 31, 2023, and their respective percentages of our total CRE portfolio.

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Table 9: CRE Loan Concentrations

	September 30, 2024
	Funded Balance		% of CRE Loans		Unfunded Balance		% of CRE Loans
	(Dollars in thousands)
Non-Farm/Non-Residential:
Single Purpose Building	$	839,534	9.8	%	$	74,073	2.8	%
Office Building	994,304		11.6		70,082		2.6
Hotel	1,090,495		12.7		27,495		1.0
Industrial	454,249		5.3		36,031		1.4
Retail	529,578		6.2		10,939		0.4
Owner-Occupied (1)	1,588,376		18.5		138,205		5.2
Construction/Land Development:
Construction Residential-Spec	443,594		5.2		379,275		14.3
Residential Land Development	526,361		6.1		86,761		3.3
Construction Commercial	452,200		5.3		401,987		15.2
Construction Multi Family	435,895		5.1		979,162		36.9
Commercial Land Development	495,569		5.8		57,107		2.2
Construction Residential-Presold	180,635		2.1		143,082		5.4
Construction Hotel	102,415		1.2		194,169		7.3
Raw Land	104,750		1.2		9,831		0.4
Agricultural (1)	335,965		3.9		43,743		1.6
Total Commercial Real Estate (2)	$	8,573,920	100.0	%	$	2,651,942	100.0	%

	December 31, 2023
	Funded Balance		% of CRE Loans		Unfunded Balance		% of CRE Loans
	(Dollars in thousands)
Non-Farm/Non-Residential:
Single Purpose Building	$	979,802	12.0	%	$	79,598	3.2	%
Office Building	1,023,917		12.5		89,464		3.6
Hotel	1,067,028		13.1		34,374		1.4
Industrial	401,125		4.9		37,342		1.5
Retail	579,886		7.1		19,744		0.8
Owner-Occupied (1)	1,498,196		18.4		98,681		4.0
Construction/Land Development:
Construction Residential-Spec	408,023		5.0		427,563		17.2
Residential Land Development	475,615		5.8		88,856		3.6
Construction Commercial	492,421		6.0		388,486		15.7
Construction Multi Family	189,711		2.3		753,285		30.3
Commercial Land Development	327,194		4.0		51,303		2.1
Construction Residential-Presold	200,114		2.4		160,809		6.5
Construction Hotel	127,784		1.6		227,530		9.2
Raw Land	72,185		0.9		1,119		—
Agricultural (1)	325,156		4.0		21,640		0.9
Total Commercial Real Estate (2)	$	8,168,157	100.0	%	$	2,479,794	100.0	%

(1)     Agriculture real estate loans and owner-occupied non-farm non-residential loans are not included within CRE for regulatory reporting purposes.

(2)     Excludes multi-family residential loans of $482.6 million and $435.7 million as of September 30, 2024 and December 31, 2023, respectively, which are included in the residential real estate loans throughout the filing. Multi-family residential loans are included in CRE for regulatory purposes.

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Table 10 presents the composition of our CRE loan portfolio by the ten largest geographical locations of the collateral as of September 30, 2024 and December 31, 2023.

Table 10: Geographical Locations of CRE Loans

	Top 10 Geographical States for CRE Loan Collateral Concentrations
	Florida		Texas		Arkansas		New York		Georgia		California		Alabama		Utah		Pennsylvania		Tennessee		All Other		Total
As of September 30, 2024
Non-Farm/Non-Residential:
Single Purpose Building	$	270,620	$	227,606	$	173,900	$	51,347	$	17,589	$	—	$	11,974	$	—	$	—	$	2,324	$	84,174	$	839,534
Office Building	327,949		267,300		78,942		50,172		91,735		—		19,059		—		25,615		—		133,532		994,304
Hotel	571,392		237,400		100,769		4,949		23,524		16,419		18,787		—		—		7,307		109,948		1,090,495
Industrial	40,732		89,917		40,520		57,518		—		21,263		68,821		—		—		—		135,478		454,249
Retail	151,221		267,717		55,988		4,159		—		(115)		12,254		—		—		442		37,912		529,578
Owner-Occupied (1)	493,186		427,909		367,675		—		21,807		5,808		27,414		—		84,067		6,966		153,544		1,588,376
Construction/Land Development:
Construction Residential -  Spec	141,263		98,077		39,050		117,732		—		38,387		(8)		—		—		—		9,093		443,594
Residential Land  Development	147,206		98,772		53,025		—		215		—		2,882		166,309		—		2,197		55,755		526,361
Construction Commercial	146,142		188,651		54,608		—		2,817		(235)		6,407		10,510		419		9,049		33,832		452,200
Construction Multi Family	174,172		70,570		26,626		112,218		—		22,005		—		—		218		25,159		4,927		435,895
Commercial Land  Development	75,012		63,063		30,375		80,035		38,585		50,644		9,757		—		—		44,019		104,079		495,569
Construction Residential -  Presold	89,669		60,187		29,043		—		—		—		601		—		—		—		1,135		180,635
Construction Hotel	16,018		50,906		15,915		—		10,497		—		2,687		—		—		—		6,392		102,415
Raw Land	8,858		9,003		29,773		—		—		32,548		1,677		—		—		—		22,891		104,750
Agricultural (1)	30,811		173,443		109,692		—		—		—		4,161		—		—		—		17,858		335,965
Total Commercial Real Estate (2)	$	2,684,251	$	2,330,521	$	1,205,901	$	478,130	$	206,769	$	186,724	$	186,473	$	176,819	$	110,319	$	97,463	$	910,550	$	8,573,920

	Top 10 Geographical States for CRE Loan Collateral Concentrations
	Florida		Texas		Arkansas		New York		Utah		Alabama		Georgia		California		Pennsylvania		Oklahoma		All Other		Total
As of December 31, 2023
Non-Farm/Non-Residential:
Single Purpose Building	$	301,505	$	330,203	$	183,961	$	52,945	$	—	$	11,810	$	5,228	$	1,396	$	2,317	$	5,200	$	85,237	$	979,802
Office Building	323,320		276,425		86,951		50,294		—		19,686		95,457		—		28,501		42,885		100,398		1,023,917
Hotel	518,592		223,750		106,975		59,910		—		19,374		23,760		—		—		24,254		90,413		1,067,028
Industrial	41,138		64,060		39,517		93,323		—		71,465		—		24,796		—		—		66,826		401,125
Retail	177,569		243,364		64,049		7,285		—		11,977		—		23,372		—		319		51,951		579,886
Owner-Occupied (1)	476,507		429,440		309,584		—		9,376		15,654		23,991		4,617		86,874		18,993		123,160		1,498,196
Construction/Land Development:																							—
Construction Residential -  Spec	124,019		103,483		35,461		88,670		—		2,763		497		40,624		—		—		12,506		408,023
Residential Land  Development	93,644		123,284		47,952		—		189,435		2,868		226		—		—		—		18,206		475,615
Construction Commercial	115,757		226,684		31,964		—		—		4,293		11,248		—		—		—		102,475		492,421
Construction Multi Family	44,179		26,082		48,485		53,711		—		—		—		8,376		189		—		8,689		189,711
Commercial Land  Development	71,670		35,647		33,294		81,004		—		5,764		—		19,029		—		—		80,786		327,194
Construction Residential -  Presold	125,004		49,654		23,248		—		—		1,184		—		—		—		125		899		200,114
Construction Hotel	70,781		50,346		3,208		—		—		(208)		(130)		—		—		—		3,787		127,784
Raw Land	8,283		15,334		23,649		—		—		2,837		—		20,894		—		—		1,188		72,185
Agricultural (1)	23,637		182,495		99,243		—		—		3,104		360		—		—		1,227		15,090		325,156
Total Commercial Real Estate (2)	$	2,515,605	$	2,380,251	$	1,137,541	$	487,142	$	198,811	$	172,571	$	160,637	$	143,104	$	117,881	$	93,003	$	761,611	$	8,168,157

(1)     Agriculture real estate loans and owner-occupied non-farm non-residential loans are not included within CRE for regulatory reporting purposes.

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(2)     Excludes multi-family residential loans of $482.6 million and $435.7 million as of September 30, 2024 and December 31, 2023, respectively, which are included in the residential real estate loans throughout the filing. Multi-family residential loans are included in CRE for regulatory purposes.

Our loan policy states that in order to achieve a well-balanced, diversified credit portfolio, concentrations containing inappropriate or excessive risk are to be avoided. It is the goal of the Company to maintain a prudent diversification of loans. We define a concentration of credit as direct or indirect obligations according to the following guidelines: (i) concentrations of 25% or more of total risk-based capital by individual borrower, small, interrelated group of individuals, single repayment source or individual project; (ii) concentrations of 100% or more of total risk-based capital by industry or product line. As of September 30, 2024, we have not met the threshold for the concentration limits. In addition, the Bank's Board of Directors monitors the CRE loan portfolio for concentrations related to geography, industry, and collateral type and determines applicable guidelines. The Chief Lending Officer also reviews the portfolio periodically to determine if any concentrations exist and makes recommendations with respect to setting internal guidelines.

The Company also monitors key risk indicators ("KRIs") on a quarterly basis for the overall loan portfolio as well as specific KRIs for the CRE portfolio. The KRIs are tied to the Bank's appetite for credit risk which is reflected in the Bank's credit policy and underwriting criteria. The KRIs related to underwriting include loan downgrades by loan review, loan downgrades to classified levels and loan policy exceptions (loan to value, debt coverage ratio and credit score). The KRIs related to CRE loans include concentrations of construction and land loans, concentrations of total CRE loans, CRE loans in excess of loan to value guidelines and total real estate loans in excess of loan to value guidelines. The results of the KRI analysis are presented to the Bank's Asset Quality Committee on a quarterly basis. Any exceptions to established limits and thresholds are monitored and addressed in a timely manner as required by the Asset Quality Committee.

The Company has a CRE strategy and contingency plan which outlines the principles required to adequately manage our CRE exposures. It discusses the inherent risks within CRE lending, as well as the risks unique to specific lending activities and property taxes. In addition, the plan outlines internal limits related to CRE lending, reasoning for operating outside those limits, and provides for a contingency plan to reduce the CRE exposures under adverse economic conditions or other situations where it is deemed necessary to do so. The responsibility for monitoring the CRE Strategy and Contingency Plan, and subsequent reporting to Management and the Board of Directors lies with the Chief Lending Officer and the Asset Quality Committee of the Board of Directors. Within the CRE Strategy and Contingency Plan, we established four adverse economic triggers to measure on an ongoing basis to attempt to determine when a change in CRE strategy might be warranted, at least from an external economic perspective. If one or a combination of these triggers have exceeded Board approved thresholds, the Executive Risk Committee will determine which action or combination of actions to take based on the specific situation. The required actions are likely to focus on tightening/loosening of underwriting criteria, potential capital raises or loan distribution actions such as selling or participating loans. However, other action steps may be considered necessary depending upon the specific situation. As of September 30, 2024, the leading economic indicator trigger exceeded our internal guidelines, but we have not recommended any additional changes to our underwriting standards because the Company considers the current standards to be adequate in addressing the risks to our CRE portfolio.

Residential Real Estate Loans. We originate one to four family, residential mortgage loans generally secured by property located in our primary market areas. Approximately 55.8% and 37.5% of our residential mortgage loans consist of owner occupied 1-4 family properties and non-owner occupied 1-4 family properties (rental), respectively, as of September 30, 2024, with the remaining 6.7% relating to condominiums and mobile homes. Residential real estate loans generally have a loan-to-value ratio of up to 90%. These loans are underwritten by giving consideration to the borrower’s ability to pay, stability of employment or source of income, debt-to-income ratio, credit history and loan-to-value ratio.

As of September 30, 2024, residential real estate loans totaled $2.42 billion, or 16.3%, of loans receivable, compared to $2.28 billion, or 15.8%, of loans receivable, as of December 31, 2023. Residential real estate loans originated in our Arkansas, Florida, Texas, Alabama, SPF and Centennial CFG markets were $572.2 million, $1.03 billion, $621.0 million, $37.9 million, zero and $149.8 million at September 30, 2024, respectively.

Consumer Loans. Our consumer loans are composed of secured and unsecured loans originated by our bank, the primary portion of which consists of loans to finance United States Coast Guard registered high-end sail and power boats within our SPF division. The performance of consumer loans will be affected by the local and regional economies as well as the rates of personal bankruptcies, job loss, divorce and other individual-specific characteristics.

As of September 30, 2024, consumer loans totaled $1.22 billion, or 8.2%, of loans receivable, compared to $1.15 billion, or 8.0%, of loans receivable, as of December 31, 2023. Consumer loans originated in our Arkansas, Florida, Texas, Alabama, SPF and Centennial CFG markets were $23.0 million, $7.0 million, $11.8 million, $454,000, $1.18 billion and zero at September 30, 2024, respectively.

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Commercial and Industrial Loans. Commercial and industrial loans are made for a variety of business purposes, including working capital, inventory, equipment and capital expansion. The terms for commercial loans are generally one to seven years. Commercial loan applications must be supported by current financial information of the borrower and, where appropriate, by adequate collateral. Commercial loans are generally underwritten by addressing cash flow (debt service coverage), primary and secondary sources of repayment, the financial strength of any guarantor, the borrower’s liquidity and leverage, management experience, ownership structure, economic conditions and industry specific trends and collateral. The loan to value ratio depends on the type of collateral. Generally, accounts receivable are financed at between 50% and 80% of accounts receivable less than 60 days past due. Inventory financing will range between 50% and 80% (with no work in process) depending on the borrower and nature of inventory. We require a first lien position for those loans.

As of September 30, 2024, commercial and industrial loans totaled $2.08 billion, or 14.1%, of loans receivable, compared to $2.32 billion, or 16.1%, of loans receivable, as of December 31, 2023. Commercial and industrial loans originated in our Arkansas, Florida, Texas, Alabama, SPF and Centennial CFG markets were $416.1 million, $448.5 million, $821.4 million, $25.2 million, $143.2 million and $230.2 million at September 30, 2024, respectively.

Non-Performing Assets

We classify our problem loans into three categories: past due loans, special mention loans and classified loans (accruing and non-accruing).

When management determines that a loan is no longer performing, and that collection of interest appears doubtful, the loan is placed on non-accrual status. Loans that are 90 days past due are placed on non-accrual status unless they are adequately secured and there is reasonable assurance of full collection of both principal and interest. Our management closely monitors all loans that are contractually 90 days past due, treated as “special mention” or otherwise classified or on non-accrual status.

Purchased loans that have experienced more than insignificant credit deterioration since origination are PCD loans. An allowance for credit losses is determined using the same methodology as other loans. The Company develops separate PCD models for each loan segment with PCD loans not individually analyzed for credit losses. The sum of the loan’s purchase price and allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a non-credit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the allowance for credit losses are recorded through the provision for credit losses. The Company held approximately $79.6 million and $130.7 million in PCD loans, as of September 30, 2024 and December 31, 2023, respectively.

Table 11 sets forth information with respect to our non-performing assets as of September 30, 2024 and December 31, 2023. As of these dates, all non-performing restructured loans are included in non-accrual loans.

Table 11: Non-performing Assets

	As of September 30, 2024			As of December 31, 2023
	(Dollars in thousands)
Non-accrual loans	$	95,747		$	59,971
Loans past due 90 days or more (principal or interest payments)	5,356			4,130
Total non-performing loans	101,103			64,101
Other non-performing assets
Foreclosed assets held for sale, net	43,040			30,486
Other non-performing assets	63			785
Total other non-performing assets	43,103			31,271
Total non-performing assets	$	144,206		$	95,372
Allowance for credit losses to non-accrual loans	326.46		%	480.62		%
Allowance for credit losses to non-performing loans	309.16			449.66
Non-accrual loans to total loans	0.65			0.42
Non-performing loans to total loans	0.68			0.44
Non-performing assets to total assets	0.63			0.42

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Our non-performing loans are comprised of non-accrual loans and accruing loans that are contractually past due 90 days. Our bank subsidiary recognizes income principally on the accrual basis of accounting. When loans are classified as non-accrual, the accrued interest is charged off and no further interest is accrued, unless the credit characteristics of the loan improve. If a loan is determined by management to be uncollectible, the portion of the loan determined to be uncollectible is then charged to the allowance for credit losses.

Total non-performing loans were $101.1 million and $64.1 million as of September 30, 2024 and December 31, 2023, respectively. Non-performing loans at September 30, 2024 were $30.4 million, $40.8 million, $20.0 million, $391,000, $6.8 million and $2.8 million in the Arkansas, Florida, Texas, Alabama, SPF and Centennial CFG markets, respectively.

The $2.8 million balance of non-accrual loans for our Centennial CFG Capital Markets Group consists of two loans that are assessed for credit risk by the Federal Reserve under the Shared National Credit Program. The loans are not current on either principal or interest, and we have reversed any interest that had accrued subsequent to the non-accrual date designated by the Federal Reserve. Any interest payments that are received will be applied to the principal balance. In addition, the $22.8 million balance of foreclosed assets held for sale for our Centennial CFG Property Finance Group consists of an office building located in California. This represents the largest component of the Company's $43.0 million in foreclosed assets held for sale.

Debt restructuring generally occurs when a borrower is experiencing, or is expected to experience, financial difficulties in the near term. As a result, we will work with the borrower to prevent further difficulties, and ultimately to improve the likelihood of recovery on the loan. In those circumstances it may be beneficial to restructure the terms of a loan and work with the borrower for the benefit of both parties, versus forcing the property into foreclosure and having to dispose of it in potentially an unfavorable and depressed real estate market. When we have modified the terms of a loan, we usually either reduce the monthly payment and/or interest rate for generally about three to twelve months. For our restructured loans that accrue interest at the time the loan is restructured, it would be a rare exception to have charged-off any portion of the loan. As of September 30, 2024, we had $6.5 million of restructured loans that are in compliance with the modified terms and are not reported as past due or non-accrual, and we had $17.7 million of restructured loans that are not in compliance with the modified terms and are reported as non-accrual. Of the $6.5 million of restructured loans that are in compliance with the modified terms, our Arkansas market contained $1.5 million, our Florida market contained $1.2 million, our Texas market contained $1.5 million and our New York region contained $2.2 million of these restructured loans. Of the $17.7 million of restructured loans not in compliance with the modified terms, our Arkansas market contained $1.3 million, our Florida market contained $16.0 million and our Texas market contained $425,000.

A loan modification that might not otherwise be considered may be granted. These loans can involve loans remaining on non-accrual, moving to non-accrual, or continuing on an accrual status, depending on the individual facts and circumstances of the borrower. Generally, a non-accrual loan that is restructured remains on non-accrual for a period of nine months to demonstrate that the borrower can meet the restructured terms. However, performance prior to the restructuring, or significant events that coincide with the restructuring, are considered in assessing whether the borrower can pay under the new terms and may result in the loan being returned to an accrual status after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is not reasonably assured, the loan will remain in a non-accrual status.

The majority of the Bank’s restructured loans relate to real estate lending and generally involve reducing the interest rate, changing from a principal and interest payment to interest-only, lengthening the amortization period, or a combination of some or all of the three. In addition, it is common for the Bank to seek additional collateral or guarantor support when modifying a loan. At September 30, 2024, the amount of restructured loans was $24.2 million. As of September 30, 2024, 26.8% of all restructured loans were performing to the terms of the restructure.

Total foreclosed assets held for sale were $43.0 million as of September 30, 2024, compared to $30.5 million as of December 31, 2023, for an increase of $12.6 million. The foreclosed assets held for sale as of September 30, 2024 are comprised of $21,000 located in Arkansas, $7.3 million located in Florida, $13.0 million located in Texas, zero in Alabama, zero in SPF and $22.8 million in Centennial CFG. The majority of the foreclosed assets held for sale is comprised of three properties. The first is an office building located in Santa Monica, California with a carrying value of $22.8 million. The second is an apartment complex which is under construction in Gunter, Texas with a carrying value of $12.8 million, and the third is an office building located in Miami, Florida with a carrying value of $7.0 million. These three properties account for $42.6 million of the balance of foreclosed assets held for sale at September 30, 2024.

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Table 12 shows the summary of foreclosed assets held for sale as of September 30, 2024 and December 31, 2023.

Table 12: Foreclosed Assets Held For Sale

	As of September 30, 2024		As of December 31, 2023
	(In thousands)
Commercial real estate loans
Non-farm/non-residential	$	29,824	$	29,894
Construction/land development	12,919		47
Residential real estate loans
Residential 1-4 family	297		545
Total foreclosed assets held for sale	$	43,040	$	30,486

The Company had $134.1 million and $94.9 million in impaired loans (which includes loans individually analyzed for credit losses for which a specific reserve has been recorded, non-accrual loans, loans past due 90 days or more and restructured loans made to borrowers experiencing financial difficulty) for the periods ended September 30, 2024 and December 31, 2023, respectively. As of September 30, 2024, our Arkansas, Florida, Texas, Alabama, SPF and Centennial CFG markets accounted for approximately $35.7 million, $42.0 million, $41.3 million, $391,000, $9.7 million and $5.0 million of the impaired loans, respectively.

The amortized cost balance for loans with a specific allocation increased from $10.5 million to $74.3 million, and the specific allocation for impaired loans increased by approximately $14.0 million at September 30, 2024 compared to December 31, 2023.

Past Due and Non-Accrual Loans

Table 13 shows the summary of non-accrual loans as of September 30, 2024 and December 31, 2023:

Table 13: Total Non-Accrual Loans

	As of September 30, 2024		As of December 31, 2023
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	48,086	$	13,178
Construction/land development	5,403		12,094
Agricultural	737		431
Residential real estate loans
Residential 1-4 family	23,905		20,351
Total real estate	78,723		46,054
Consumer	7,501		3,423
Commercial and industrial	8,511		9,982
Agricultural & other	1,012		512
Total non-accrual loans	$	95,747	$	59,971

If non-accrual loans had been accruing interest in accordance with the original terms of their respective agreements, interest income of approximately $1.5 million and $1.9 million, respectively, would have been recorded for both of the three-month periods ended September 30, 2024 and 2023. If non-accrual loans had been accruing interest in accordance with the original terms of their respective agreements, interest income of approximately $4.5 million and $5.5 million, respectively, would have been recorded for both of the nine-month periods ended September 30, 2024 and 2023. The interest income recognized on non-accrual loans for the three months ended September 30, 2024 and 2023 was considered immaterial.

Table 14 shows the summary of accruing past due loans 90 days or more as of September 30, 2024 and December 31, 2023:

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Table 14: Loans Accruing Past Due 90 Days or More

	As of September 30, 2024		As of December 31, 2023
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	709	$	2,177
Construction/land development	657		255
Residential real estate loans
Residential 1-4 family	1,495		84
Total real estate	2,861		2,516
Consumer	28		79
Commercial and industrial	2,405		1,535
Agricultural & Other	62		—
Total loans accruing past due 90 days or more	$	5,356	$	4,130

Our ratio of total loans accruing past due 90 days or more and non-accrual loans to total loans was 0.68% and 0.44% at September 30, 2024 and December 31, 2023, respectively.

Allowance for Credit Losses

Overview. The allowance for credit losses on loans receivable increased from $288.2 million as of December 31, 2023 to $312.6 million as of September 30, 2024. The specific reserve for loans individually analyzed for credit losses was $20.4 million on $206.8 million of individually analyzed loans as of September 30, 2024, compared to a reserve of $6.4 million on $171.7 million of individually analyzed loans as of December 31, 2023. The allowance for credit losses as a percentage of loans was 2.11% and 2.00% at September 30, 2024 and December 31, 2023, respectively.

Loans Collectively Evaluated for Credit Loss. Loans receivable collectively evaluated for credit loss increased by approximately $364.1 million from $14.25 billion at December 31, 2023 to $14.62 billion at September 30, 2024. The percentage of the allowance for credit losses allocated to loans receivable collectively evaluated for credit loss to the total loans collectively evaluated for credit loss was 2.00% and 1.98% at September 30, 2024 and December 31, 2023, respectively.

Charge-offs and Recoveries. Total charge-offs decreased to $2.0 million for the three months ended September 30, 2024, compared to $3.4 million for the same period in 2023. Total charge-offs decreased to $9.1 million for the nine months ended September 30, 2024, compared to $12.5 million for the same period in 2023. Total recoveries were $519,000 and $528,000 for the three months ended September 30, 2024 and 2023, respectively. Total recoveries were $1.7 million and $2.1 million for the nine months ended September 30, 2024 and 2023, respectively. For the three months ended September 30, 2024, net charge-offs were $538,000 for Arkansas, $310,000 for Florida, $503,000 for Texas, $4,000 for Alabama, $127,000 for SPF and zero for Centennial CFG. These equal a net charge-off position of $1.5 million. For the nine months ended September 30, 2024, net charge-offs were $3.1 million for Arkansas, $835,000 for Florida, $2.9 million for Texas, $23,000 for Alabama, $287,000 for SPF and $222,000 for Centennial CFG. These equal a net charge-off position of $7.4 million.

We have not charged off an amount less than what was determined to be the fair value of the collateral as presented in the appraisal, less estimated costs to sell (for collateral dependent loans), for any period presented. Loans partially charged-off are placed on non-accrual status until it is proven that the borrower's repayment ability with respect to the remaining principal balance can be reasonably assured. This is usually established over a period of 6-12 months of timely payment performance.

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Table 15 shows the allowance for credit losses, charge-offs and recoveries as of and for the three and nine months ended September 30, 2024 and 2023.

Table 15: Analysis of Allowance for Credit Losses

	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
	(Dollars in thousands)
Balance, beginning of period	$	295,856		$	285,683		$	288,234		$	289,669
Loans charged off
Real estate:
Commercial real estate loans:
Non-farm/non-residential	—			1,945			1,164			2,016
Construction/land development	—			150			81			175
Agricultural	—			5			—			7
Residential real estate loans:
Residential 1-4 family	42			103			260			192
Total real estate	42			2,203			1,505			2,390
Consumer	402			102			799			464
Commercial and industrial	741			183			4,500			7,015
Other	816			961			2,273			2,594
Total loans charged off	2,001			3,449			9,077			12,463
Recoveries of loans previously charged off
Real estate:
Commercial real estate loans:
Non-farm/non-residential	34			25			59			517
Construction/land development	7			33			96			103
Residential real estate loans:
Residential 1-4 family	54			22			149			153
Multifamily residential	—			—			—			8
Total real estate	95			80			304			781
Consumer	13			22			74			79
Commercial and industrial	143			119			503			375
Other	268			307			836			821
Total recoveries	519			528			1,717			2,056
Net loans charged off	1,482			2,921			7,360			10,407
Provision for credit loss	18,200			2,800			31,700			6,300
Balance, September 30	$	312,574		$	285,562		$	312,574		$	285,562
Net charge-offs to average loans receivable	0.04		%	0.08		%	0.07		%	0.10		%
Allowance for credit losses to total loans	2.11			2.00			2.11			2.00
Allowance for credit losses to net charge-offs	5,301.65			2,464.13			3,179.40			2,052.32

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Table 16 presents the allocation of allowance for credit losses as of September 30, 2024 and December 31, 2023.

Table 16: Allocation of Allowance for Credit Losses

	As of September 30, 2024				As of December 31, 2023
	Allowance Amount		% of loans(1)		Allowance Amount		% of loans(1)
	(Dollars in thousands)
Real estate:
Commercial real estate loans:
Non-farm/non- residential	$	93,121	37.0	%	$	77,194	38.5	%
Construction/land development	63,398		18.5		33,877		15.9
Agricultural residential real estate loans	3,554		2.3		1,441		2.3
Residential real estate loans:
Residential 1-4 family	41,544		13.0		51,313		12.8
Multifamily residential	17,881		3.3		4,547		3.0
Total real estate	219,498		74.1		168,372		72.5
Consumer	28,113		8.2		24,728		8.0
Commercial and industrial	59,079		14.1		91,551		16.1
Agricultural	1,524		2.4		1,259		2.1
Other	4,360		1.2		2,324		1.3
Total	$	312,574	100.0	%	$	288,234	100.0	%

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

Investment Securities

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, available-for-sale, or trading based on the intent and objective of the investment and the ability to hold to maturity. Fair values of securities are based on quoted market prices where available. If quoted market prices are not available, estimated fair values are based on quoted market prices of comparable securities. The estimated effective duration of our securities portfolio was 4.6 years as of September 30, 2024.

Securities held-to-maturity, which include any security for which we have the positive intent and ability to hold until maturity, are reported at historical cost adjusted for amortization of premiums and accretion of discounts. Premiums and discounts are amortized/accreted to the call date to interest income using the constant effective yield method over the estimated life of the security. We had $1.28 billion of held-to-maturity securities at both September 30, 2024 and December 31, 2023.

At September 30, 2024, $1.11 billion, or 86.7%, was invested in obligations of state and political subdivisions, compared to $1.11 billion, or 86.5%, as of December 31, 2023. As of September 30, 2024, $43.5 million, or 3.4%, was invested in obligations of U.S. Government-sponsored enterprises, compared to $43.3 million, or 3.4%, as of December 31, 2023. We had $125.9 million, or 9.9%, invested in U.S. government-sponsored mortgage-backed securities at September 30, 2024, compared to $130.3 million, or 10.2%, at December 31, 2023.

Securities available-for-sale are reported at fair value with unrealized holding gains and losses reported as a separate component of stockholders’ equity as other comprehensive (loss) income. Securities that may be sold in response to interest rate changes, changes in prepayment risk, the need to increase regulatory capital, and other similar factors are classified as available-for-sale. Available-for-sale securities were $3.27 billion and $3.51 billion as September 30, 2024 and December 31, 2023, respectively.

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As of September 30, 2024, $1.43 billion, or 43.6%, of our available-for-sale securities were invested in U.S. government-sponsored mortgage-backed securities, compared to $1.52 billion, or 43.3%, of our available-for-sale securities as of December 31, 2023. To reduce our income tax burden, $900.9 million, or 27.5%, of our available-for-sale securities portfolio as of September 30, 2024, were primarily invested in tax-exempt obligations of state and political subdivisions, compared to $916.3 million, or 26.1%, of our available-for-sale securities as of December 31, 2023. We had $311.8 million, or 9.5%, invested in obligations of U.S. Government-sponsored enterprises as of September 30, 2024, compared to $346.6 million, or 9.9%, of our available-for-sale securities as of December 31, 2023. We had $262.2 million, or 8.0%, invested in non-government-sponsored asset backed securities as of September 30, 2024, compared to $363.5 million, or 10.4%, of our available-for-sale securities as of December 31, 2023. As of September 30, 2024, $177.9 million, or 5.4%, of our available-for-sale securities were invested in private mortgage-backed securities, compared to $175.4 million, or 5.0%, of our available-for-sale securities as of December 31, 2023. Also, we had approximately $192.3 million, or 5.9%, invested in other securities as of September 30, 2024, compared to $185.6 million, or 5.3% of our available-for-sale securities as of December 31, 2023.

During the quarter ended September 30, 2024, the Company recovered $330,000 in AFS reserves due to an improvement in the unrealized loss position of one of the Company's subordinated debt investments. For both the three and nine month periods ended September 30, 2024, the Company determined the $2.0 million allowance for credit losses on the held-to-maturity portfolio was adequate. Therefore, no additional provision was considered necessary for the HTM portfolio.

See Note 3 to the Condensed Notes to Consolidated Financial Statements for the carrying value and fair value of investment securities.

Deposits

Our deposits averaged $16.86 billion and $16.85 billion for the three and nine months ended September 30, 2024, respectively. Our deposits averaged $16.68 billion and $17.17 billion for the three and nine months ended September 30, 2023, respectively. Total deposits were $16.71 billion as of September 30, 2024, and $16.79 billion as of December 31, 2023. Deposits are our primary source of funds. We offer a variety of products designed to attract and retain deposit customers. Those products consist of checking accounts, regular savings deposits, NOW accounts, money market accounts and certificates of deposit. Deposits are gathered from individuals, partnerships and corporations in our market areas. In addition, we obtain deposits from state and local entities and, to a lesser extent, U.S. Government and other depository institutions.

Our policy also permits the acceptance of brokered deposits. From time to time, when appropriate in order to fund strong loan demand, we accept brokered time deposits, generally in denominations of less than $250,000, from a regional brokerage firm, and other national brokerage networks. We also participate in the One-Way Buy Insured Cash Sweep (“ICS”) service and similar services, which provide for one-way buy transactions among banks for the purpose of purchasing cost-effective floating-rate funding without collateralization or stock purchase requirements. Management believes these sources represent a reliable and cost-efficient alternative funding source for the Company. However, to the extent that our condition or reputation deteriorates, or to the extent that there are significant changes in market interest rates which we do not elect to match, we may experience an outflow of brokered deposits. In that event we would be required to obtain alternate sources for funding.

Table 17 reflects the classification of the brokered deposits as of September 30, 2024 and December 31, 2023.

Table 17: Brokered Deposits

	September 30, 2024		December 31, 2023
	(In thousands)
Insured Cash Sweep and Other Transaction Accounts	$	421,274	$	401,004
Total Brokered Deposits	$	421,274	$	401,004

The interest rates paid are competitively priced for each particular deposit product and structured to meet our funding requirements. We will continue to manage interest expense through deposit pricing. We may allow higher rate deposits to run off during periods of limited loan demand. We believe that additional funds can be attracted, and deposit growth can be realized through deposit pricing if we experience increased loan demand or other liquidity needs.

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The Federal Reserve Board sets various benchmark rates, including the Federal Funds rate, and thereby influences the general market rates of interest, including the deposit and loan rates offered by financial institutions. The Federal Reserve increased the target rate four times during 2023. First, on February 1, 2023, the target rate was increased to 4.50% to 4.75%, second, on March 22, 2023, the target rate was increased to 4.75% to 5.00%, third, on May 3, 2023, the target rate was increased to 5.00% to 5.25% and fourth, on July 26, 2023, the target rate was increased to 5.25% to 5.50%. On September 18, 2024, the Federal Reserve reduced the target rate to 4.75% to 5.00%.

Table 18 reflects the classification of the average deposits and the average rate paid on each deposit category, which are in excess of 10 percent of average total deposits, for the three and nine months ended September 30, 2024 and 2023.

Table 18: Average Deposit Balances and Rates

	Three Months Ended September 30,
	2024				2023
	Average Amount		Average Rate Paid		Average Amount		Average Rate Paid
	(Dollars in thousands)
Non-interest-bearing transaction accounts	$	3,993,187	—	%	$	4,434,394	—	%
Interest-bearing transaction accounts	9,979,924		3.06		9,700,273		2.68
Savings deposits	1,115,648		0.88		1,223,663		0.79
Time deposits:
$100,000 or more	1,163,122		4.35		854,338		3.46
Other time deposits	606,830		3.82		464,788		2.71
Total	$	16,858,711	2.31	%	$	16,677,456	1.87	%

	Nine Months Ended September 30,
	2024				2023
	Average Amount		Average Rate Paid		Average Amount		Average Rate Paid
	(Dollars in thousands)
Non-interest-bearing transaction accounts	$	4,031,447	—	%	$	4,729,515	—	%
Interest-bearing transaction accounts	9,947,966		3.03		9,961,524		2.39
Savings deposits	1,136,431		0.87		1,284,826		0.77
Time deposits:
$100,000 or more	1,135,059		4.30		752,952		2.78
Other time deposits	594,341		3.77		436,668		2.08
Total	$	16,845,244	2.27	%	$	17,165,485	1.62	%

Securities Sold Under Agreements to Repurchase

We enter into short-term purchases of securities under agreements to resell (resale agreements) and sales of securities under agreements to repurchase (repurchase agreements) of substantially identical securities. The amounts advanced under resale agreements and the amounts borrowed under repurchase agreements are carried on the balance sheet at the amount advanced. Interest incurred on repurchase agreements is reported as interest expense. Securities sold under agreements to repurchase increased $37.3 million, or 26.3%, from $142.1 million as of December 31, 2023 to $179.4 million as of September 30, 2024.

FHLB and Other Borrowed Funds

The Company’s FHLB borrowed funds, which are secured by our loan portfolio, were $600.0 million at both September 30, 2024 and December 31, 2023. At September 30, 2024 and December 31, 2023, the entire $600.0 million of the outstanding balances were classified as long-term advances. The FHLB advances mature from 2025 to 2037 with fixed interest rates ranging from 3.37% to 4.84%. Expected maturities could differ from contractual maturities because FHLB may have the right to call, or the Company may have the right to prepay certain obligations.

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Other borrowed funds were $700.8 million as of September 30, 2024 and were classified as short-term advances. The Company had $701.3 million in other borrowed funds as of December 31, 2023. As of both September 30, 2024 and December 31, 2023, the Company had drawn $700.0 million from the Bank Term Funding Program in the ordinary course of business, and these advances mature on January 16, 2025.

Additionally, the Company had $1.24 billion and $1.33 billion at September 30, 2024 and December 31, 2023, respectively, in letters of credit under a FHLB blanket borrowing line of credit, which are used to collateralize public deposits.

Subordinated Debentures

Subordinated debentures were $439.4 million and $439.8 million as of September 30, 2024 and December 31, 2023, respectively.

On April 1, 2022, the Company acquired $140.0 million in aggregate principal amount of 5.500% Fixed-to-Floating Rate Subordinated Notes due 2030 (the “2030 Notes”) from Happy, and the Company recorded approximately $144.4 million which included fair value adjustments. The 2030 Notes are unsecured, subordinated debt obligations of the Company and will mature on July 31, 2030. From and including the date of issuance to, but excluding July 31, 2025 or the date of earlier redemption, the 2030 Notes will bear interest at an initial rate of 5.50% per annum, payable in arrears on January 31 and July 31 of each year. From and including July 31, 2025 to, but excluding, the maturity date or earlier redemption, the 2030 Notes will bear interest at a floating rate equal to the Benchmark rate (which is expected to be 3-month Secured Overnight Funding Rate (SOFR)), each as defined in and subject to the provisions of the applicable supplemental indenture for the 2030 Notes, plus 5.345%, payable quarterly in arrears on January 31, April 30, July 31, and October 31 of each year, commencing on October 31, 2025.

The Company may, beginning with the interest payment date of July 31, 2025, and on any interest payment date thereafter, redeem the 2030 Notes, in whole or in part, subject to prior approval of the Federal Reserve if then required, at a redemption price equal to 100% of the principal amount of the 2030 Notes to be redeemed plus accrued and unpaid interest to but excluding the date of redemption. The Company may also redeem the 2030 Notes at any time, including prior to July 31, 2025, at the Company’s option, in whole but not in part, subject to prior approval of the Federal Reserve if then required, if certain events occur that could impact the Company’s ability to deduct interest payable on the 2030 Notes for U.S. federal income tax purposes or preclude the 2030 Notes from being recognized as Tier 2 capital for regulatory capital purposes, or if the Company is required to register as an investment company under the Investment Company Act of 1940, as amended. In each case, the redemption would be at a redemption price equal to 100% of the principal amount of the 2030 Notes plus any accrued and unpaid interest to, but excluding, the redemption date.

On January 18, 2022, the Company completed an underwritten public offering of $300.0 million in aggregate principal amount of its 3.125% Fixed-to-Floating Rate Subordinated Notes due 2032 (the “2032 Notes”) for net proceeds, after underwriting discounts and issuance costs, of approximately $296.4 million. The 2032 Notes are unsecured, subordinated debt obligations of the Company and will mature on January 30, 2032. From and including the date of issuance to, but excluding January 30, 2027 or the date of earlier redemption, the 2032 Notes will bear interest at an initial rate of 3.125% per annum, payable in arrears on January 30 and July 30 of each year. From and including January 30, 2027 to, but excluding the maturity date or earlier redemption, the 2032 Notes will bear interest at a floating rate equal to the Benchmark rate (which is expected to be Three-Month Term SOFR), each as defined in and subject to the provisions of the applicable supplemental indenture for the 2032 Notes, plus 182 basis points, payable quarterly in arrears on January 30, April 30, July 30, and October 30 of each year, commencing on April 30, 2027.

The Company may, beginning with the interest payment date of January 30, 2027, and on any interest payment date thereafter, redeem the 2032 Notes, in whole or in part, subject to prior approval of the Federal Reserve if then required, at a redemption price equal to 100% of the principal amount of the 2032 Notes to be redeemed plus accrued and unpaid interest to but excluding the date of redemption. The Company may also redeem the 2032 Notes at any time, including prior to January 30, 2027, at the Company’s option, in whole but not in part, subject to prior approval of the Federal Reserve if then required, if certain events occur that could impact the Company’s ability to deduct interest payable on the 2032 Notes for U.S. federal income tax purposes or preclude the 2032 Notes from being recognized as Tier 2 capital for regulatory capital purposes, or if the Company is required to register as an investment company under the Investment Company Act of 1940, as amended. In each case, the redemption would be at a redemption price equal to 100% of the principal amount of the 2032 Notes plus any accrued and unpaid interest to, but excluding, the redemption date.

Stockholders’ Equity

Stockholders’ equity increased $168.7 million to $3.96 billion as of September 30, 2024, compared to $3.79 billion as of December 31, 2023. The $168.7 million increase in stockholders’ equity is primarily associated with the $301.7 million in net income and the $54.2 million in other comprehensive income for the nine months ended September 30, 2024, which was partially offset by the $111.2 million of shareholder dividends paid and stock repurchases of $83.6 million in 2024. As of September 30, 2024 and December 31, 2023, our equity to asset ratio was 17.35% and 16.73%, respectively. Book value per share was $19.91 as of September 30, 2024, compared to $18.81 as of December 31, 2023, a 7.8% annualized increase.

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Common Stock Cash Dividends. We declared cash dividends on our common stock of $0.195 and $0.180 per share for the three months ended September 30, 2024 and 2023, respectively, and $0.555 and $0.54 per share for the nine months ended September 30, 2024 and 2023, respectively. The common stock dividend payout ratio for the three months ended September 30, 2024 and 2023 was 38.9% and 37.0%, respectively. The common stock dividend payout ratio for the nine months ended September 30, 2024 and 2023 was 36.9% and 35.7%, respectively. On October 18, 2024, the Board of Directors declared a regular $0.195 per share quarterly cash dividend payable December 4, 2024, to shareholders of record November 13, 2024.

Stock Repurchase Program. During the first nine months of 2024, the Company repurchased a total of 3,426,028 shares with a weighted-average stock price of $24.36 per share. Shares repurchased under the program as of September 30, 2024 since its inception total 26,411,743 shares. The remaining balance available for repurchase was 13,340,257 shares at September 30, 2024.

Liquidity and Capital Adequacy Requirements

Risk-Based Capital. We, as well as our bank subsidiary, are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and other discretionary actions by regulators that, if enforced, could have a direct material effect on our financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, we must meet specific capital guidelines that involve quantitative measures of our assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. Our capital amounts and classifications are also subject to qualitative judgments by the regulators as to components, risk weightings and other factors.

In July 2013, the Federal Reserve Board and the other federal bank regulatory agencies issued a final rule to revise their risk-based and leverage capital requirements and their method for calculating risk-weighted assets to make them consistent with the agreements that were reached by the Basel Committee on Banking Supervision in “Basel III: A Global Regulatory Framework for More Resilient Banks and Banking Systems” and certain provisions of the Dodd-Frank Act (“Basel III”). Basel III applies to all depository institutions, bank holding companies with total consolidated assets of $500 million or more, and savings and loan holding companies. Basel III became effective for the Company and its bank subsidiary on January 1, 2015. Basel III limits a banking organization’s capital distributions and certain discretionary bonus payments if the banking organization does not hold a “capital conservation buffer” of 2.5% of common equity Tier 1 capital to risk-weighted assets, which is in addition to the amount necessary to meet its minimum risk-based capital requirements.

Basel III amended the prompt corrective action rules to incorporate a common equity Tier 1 ("CET1") capital requirement and to raise the capital requirements for certain capital categories. In order to be adequately capitalized for purposes of the prompt corrective action rules, a banking organization is required to have at least a 4.5% CET1 risk-based capital ratio, a 4% Tier 1 leverage ratio, a 6% Tier 1 risk-based capital ratio and an 8% total risk-based capital ratio.

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 and Tier 1 capital to risk-weighted assets, and of Tier 1 capital to average assets. Management believes that, as of September 30, 2024 and December 31, 2023, we met all regulatory capital adequacy requirements to which we were subject.

On December 21, 2018, the federal banking agencies issued a joint final rule to revise their regulatory capital rules to permit bank holding companies and banks to phase-in, for regulatory capital purposes, the day-one impact of the new CECL accounting rule on retained earnings over a period of three years. As part of its response to the impact of COVID-19, on March 27, 2020, the federal banking regulatory agencies issued an interim final rule that provided the option to temporarily delay certain effects of CECL on regulatory capital for two years, followed by a three-year transition period. The interim final rule allows bank holding companies and banks to delay for two years 100% of the day-one impact of adopting CECL and 25% of the cumulative change in the reported allowance for credit losses since adopting CECL. The Company has elected to adopt the interim final rule, which is reflected in the risk-based capital ratios presented below.

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Table 19 presents our risk-based capital ratios on a consolidated basis as of September 30, 2024 and December 31, 2023.

Table 19: Risk-Based Capital

	As of September 30, 2024			As of December 31, 2023
	(Dollars in thousands)
Tier 1 capital
Stockholders’ equity	$	3,959,789		$	3,791,075
ASC 326 transitional period adjustment	8,123			16,246
Goodwill and core deposit intangibles, net	(1,440,198)			(1,446,573)
Unrealized loss on available-for-sale securities	194,862			249,075
Total common equity Tier 1 capital	2,722,576			2,609,823
Total Tier 1 capital	2,722,576			2,609,823
Tier 2 capital
Allowance for credit losses	312,574			288,234
ASC 326 transitional period adjustment	(8,123)			(16,246)
Disallowed allowance for credit losses (limited to 1.25% of risk weighted assets)	(70,729)			(40,509)
Qualifying allowance for credit losses	233,722			231,479
Qualifying subordinated notes	439,394			439,834
Total Tier 2 capital	673,116			671,313
Total risk-based capital	$	3,395,692		$	3,281,136
Average total assets for leverage ratio	$	21,704,064		$	20,981,774
Risk weighted assets	$	18,578,700		$	18,440,964
Ratios at end of period
Common equity Tier 1 capital	14.65		%	14.15		%
Leverage ratio	12.54			12.44
Tier 1 risk-based capital	14.65			14.15
Total risk-based capital	18.28			17.79
Minimum guidelines – Basel III
Common equity Tier 1 capital	7.00		%	7.00		%
Leverage ratio	4.00			4.00
Tier 1 risk-based capital	8.50			8.50
Total risk-based capital	10.50			10.50
Well-capitalized guidelines
Common equity Tier 1 capital	6.50		%	6.50		%
Leverage ratio	5.00			5.00
Tier 1 risk-based capital	8.00			8.00
Total risk-based capital	10.00			10.00

As of the most recent notification from regulatory agencies, our bank subsidiary was “well-capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well-capitalized,” we, as well as our banking subsidiary, must maintain minimum CET1 capital, leverage, Tier 1 risk-based capital, and total risk-based capital ratios as set forth in the table. There are no conditions or events since that notification that we believe have changed the bank subsidiary’s category.

Non-GAAP Financial Measurements

Our accounting and reporting policies conform to generally accepted accounting principles in the United States (“GAAP”) and the prevailing practices in the banking industry. However, this report contains financial information determined by methods other than in accordance with GAAP, including earnings, as adjusted; diluted earnings per common share, as adjusted; tangible book value per share; return on average assets, excluding intangible amortization; return on average assets, as adjusted; return on average common equity, as adjusted; return on average tangible equity, excluding intangible amortization; return on average tangible equity, as adjusted; tangible equity to tangible assets; and efficiency ratio, as adjusted.

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We believe these non-GAAP measures and ratios, when taken together with the corresponding GAAP measures and ratios, provide meaningful supplemental information regarding our performance. We believe investors benefit from referring to these non-GAAP measures and ratios in assessing our operating results and related trends, and when planning and forecasting future periods. However, these non-GAAP measures and ratios should be considered in addition to, and not as a substitute for or preferable to, ratios prepared in accordance with GAAP.

The tables below present non-GAAP reconciliations of earnings, as adjusted, and diluted earnings per share, as adjusted, as well as the non-GAAP computations of tangible book value per share; return on average assets, excluding intangible amortization; return on average assets, as adjusted; return on average common equity, as adjusted; return on average tangible equity excluding intangible amortization; return on average tangible equity, as adjusted; tangible equity to tangible assets; and efficiency ratio, as adjusted. The items used in these calculations are included in financial results presented in accordance with GAAP.

Earnings, as adjusted, and diluted earnings per common share, as adjusted, are meaningful non-GAAP financial measures for management, as they exclude certain items such as merger expenses and/or certain gains and losses. Management believes the exclusion of these items in expressing earnings provides a meaningful foundation for period-to-period and company-to-company comparisons, which management believes will aid both investors and analysts in analyzing our financial measures and predicting future performance. These non-GAAP financial measures are also used by management to assess the performance of our business, because management does not consider these items to be relevant to ongoing financial performance.

In Table 20 below, we have provided a reconciliation of the non-GAAP calculation of the financial measure for the periods indicated.

Table 20: Earnings, As Adjusted

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(Dollars in thousands)
GAAP net income available to common shareholders (A)	$	100,038	$	98,453	$	301,677	$	306,686
Pre-tax adjustments:
FDIC special assessment	—		—		2,260		—
Fair value adjustment for marketable securities	(1,392)		(4,507)		(2,121)		6,118
Gain on sale of building	—		—		(2,059)		—
Recoveries on historic losses	—		—		—		(3,461)
BOLI death benefits	—		(338)		(162)		(3,117)
Total pre-tax adjustments	(1,392)		(4,845)		(2,082)		(460)
Tax-effect of adjustments(1)	(348)		(1,112)		(480)		(30)
Investment DTA write-off	2,030		—		2,030		—
Total adjustments after-tax (B)	(1,044)		(3,733)		428		(430)
Earnings, as adjusted (C)	$	98,994	$	94,720	$	302,105	$	306,256
Average diluted shares outstanding (D)	199,461		202,650		200,430		203,068
GAAP diluted earnings per share: A/D	$	0.50	$	0.49	$	1.51	$	1.51
Adjustments after-tax: B/D	—		(0.02)		—		—
Diluted earnings per common share excluding adjustments: C/D	$	0.50	$	0.47	$	1.51	$	1.51

(1) Blended statutory rate of 24.989% for 2024 and 24.6735% for 2023.

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We had $1.44 billion, $1.45 billion, and $1.45 billion in total goodwill and core deposit intangibles as of September 30, 2024, December 31, 2023 and September 30, 2023, respectively. Because of our level of intangible assets and related amortization expenses, management believes tangible book value per share, return on average assets excluding intangible amortization, return on average tangible equity, return on average tangible equity excluding intangible amortization, and tangible equity to tangible assets are useful in evaluating our company. Management also believes return on average assets, as adjusted, return on average equity, as adjusted, and return on average tangible equity, as adjusted, are meaningful non-GAAP financial measures, as they exclude items such as certain non-interest income and expenses that management believes are not indicative of our primary business operating results. These calculations, which are similar to the GAAP calculations of book value per share, return on average assets, return on average equity, and equity to assets, are presented in Tables 21 through 24, respectively.

Table 21: Tangible Book Value Per Share

	As of September 30, 2024		As of December 31, 2023
	(In thousands, except per share data)
Book value per share: A/B	$	19.91	$	18.81
Tangible book value per share: (A-C-D)/B	12.67		11.63
(A) Total equity	$	3,959,789	$	3,791,075
(B) Shares outstanding	198,879		201,526
(C) Goodwill	1,398,253		1,398,253
(D) Core deposit intangibles	42,395		48,770

Table 22: Return on Average Assets, As Adjusted

	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
	(Dollars in thousands)
Return on average assets: A/D	1.74		%	1.78		%	1.77		%	1.84		%
Return on average assets, as adjusted: (A+C)/D	1.72			1.72			1.77			1.84
Return on average assets excluding intangible amortization: B/(D-E)	1.88			1.95			1.92			2.01
(A) Net income	$	100,038		$	98,453		$	301,677		$	306,686
Intangible amortization after-tax	1,572			1,866			4,782			5,598
(B) Earnings excluding intangible amortization	$	101,610		$	100,319		$	306,459		$	312,284
(C) Adjustments after-tax	$	(1,044)		$	(3,733)		$	428		$	(430)
(D) Average assets	22,893,784			21,902,434			22,817,942			22,272,325
(E) Average goodwill, core deposits and other intangible assets	1,441,654			1,450,478			1,443,770			1,452,933

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Table 23: Return on Average Equity, As Adjusted

	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
	(Dollars in thousands)
Return on average equity: A/D	10.23		%	10.65		%	10.53		%	11.32		%
Return on average common equity, as adjusted: (A+C)/D	10.12			10.25			10.55			11.30
Return on average tangible common equity: A/(D-E)	16.26			17.62			16.91			18.90
Return on average tangible equity excluding intangible amortization: B/(D-E)	16.51			17.95			17.18			19.24
Return on average tangible common equity, as adjusted: (A+C)/(D-E)	16.09			16.95			16.94			18.87
(A) Net income	$	100,038		$	98,453		$	301,677		$	306,686
(B) Earnings excluding intangible amortization	101,610			100,319			306,459			312,284
(C) Adjustments after-tax	(1,044)			(3,733)			428			(430)
(D) Average equity	3,889,712			3,667,339			3,826,619			3,622,733
(E) Average goodwill, core deposits and other intangible assets	1,441,654			1,450,478			1,443,770			1,452,933

Table 24: Tangible Equity to Tangible Assets

	As of September 30, 2024			As of December 31, 2023
	(Dollars in thousands)
Equity to assets: B/A	17.35		%	16.73		%
Tangible equity to tangible assets: (B-C-D)/(A-C-D)	11.78			11.05
(A) Total assets	$	22,823,117		$	22,656,658
(B) Total equity	3,959,789			3,791,075
(C) Goodwill	1,398,253			1,398,253
(D) Core deposit intangibles	42,395			48,770

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The efficiency ratio is a standard measure used in the banking industry and is calculated by dividing non-interest expense less amortization of core deposit intangibles by the sum of net interest income on a tax equivalent basis and non-interest income. The efficiency ratio, as adjusted, is a meaningful non-GAAP measure for management, as it excludes certain items and is calculated by dividing non-interest expense less amortization of core deposit intangibles by the sum of net interest income on a tax equivalent basis and non-interest income excluding items such as merger expenses and/or certain gains, losses and other non-interest income and expenses. In Table 25 below, we have provided a reconciliation of the non-GAAP calculation of the financial measure for the periods indicated.

Table 25: Efficiency Ratio, As Adjusted

	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
	(Dollars in thousands)
Net interest income (A)	$	215,220		$	201,937		$	631,632		$	624,175
Non-interest income (B)	42,779			43,413			127,352			127,086
Non-interest expense (C)	110,045			114,762			334,726			345,688
FTE Adjustment (D)	2,616			1,293			6,136			4,415
Amortization of intangibles (E)	2,095			2,478			4,280			4,955
Adjustments:
Non-interest income:
Fair value adjustment for marketable securities	$	1,392		$	4,507		$	2,121		$	(6,118)
Gain on OREO, net	85			—			151			319
Gain on branches, equipment and other assets, net	32			—			2,076			924
BOLI death benefits	—			338			162			3,117
Recoveries on historic losses	—			—			—			3,461
Total non-interest income adjustments (F)	$	1,509		$	4,845		$	4,510		$	1,703
Non-interest expense:
FDIC special assessment	$	—		$	—		$	2,260		$	—
Total non-interest expense adjustments (G)	$	—		$	—		$	2,260		$	—
Efficiency ratio (reported): ((C-E)/(A+B+D))	41.42		%	45.53		%	42.91		%	44.76		%
Efficiency ratio, as adjusted (non-GAAP): ((C-E-G)/(A+B+D-F))	41.66			46.44			42.87			44.86

Recently Issued Accounting Pronouncements

See Note 21 to the Condensed Notes to Consolidated Financial Statements for a discussion of certain recently issued and recently adopted accounting pronouncements.

Item 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Liquidity and Market Risk Management

At September 30, 2024, we held $2.50 billion in assets that could be used for liquidity purposes, which we refer to as net available internal liquidity. This balance consisted of $1.51 billion in unpledged investment securities which could be used for additional secured borrowing capacity, $718.9 million in cash on deposit with the Federal Reserve Bank ("FRB") and $270.4 million in other liquid cash accounts.

Consistent with our practice of maintaining access to significant external liquidity, we had $3.15 billion in net available sources of borrowed funds, which we refer to as net available external liquidity, as of September 30, 2024. This included $4.80 billion in total borrowing capacity with the Federal Home Loan Bank ("FHLB"), of which $1.84 billion has been drawn upon in the ordinary course of business, resulting in $2.97 billion in net available liquidity with the FHLB as of September 30, 2024. The $1.84 billion consisted of $600.0 million in outstanding FHLB advances and $1.24 billion used for pledging purposes. We also had access to approximately $785.6 million in liquidity with the FRB as of September 30, 2024, of which $700.0 million has been drawn upon in the ordinary course of business, resulting in $85.6 million in net available liquidity with the FRB as of September 30, 2024. As of September 30, 2024, the Company also had access to $55.0 million from First National Bankers’ Bank ("FNBB"), and $45.0 million from other various external sources.

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Overall, we had $5.65 billion net available liquidity as of September 30, 2024, which consisted of $2.50 billion of net available internal liquidity and $3.15 billion in net available external liquidity. Details on our available liquidity as of September 30, 2024 is available below.

(in thousands)	Total Available		Amount Used		Net Availability
Internal Sources
Unpledged investment securities (market value)	$	1,509,661	$	—	$	1,509,661
Cash at FRB	718,881		—		718,881
Other liquid cash accounts	270,411		—		270,411
Total Internal Liquidity	2,498,953		—		2,498,953
External Sources
FHLB	4,804,845		1,838,171		2,966,674
FRB Discount Window	85,624		—		85,624
BTFP (par value)	700,000		700,000		—
FNBB	55,000		—		55,000
Other	45,000		—		45,000
Total External Liquidity	5,690,469		2,538,171		3,152,298
Total Available Liquidity	$	8,189,422	$	2,538,171	$	5,651,251

We have continued to limit our exposure to uninsured deposits and have been actively monitoring this exposure in light of the current banking environment. As of September 30, 2024, we held approximately $8.18 billion in uninsured deposits of which $766.2 million were intercompany subsidiary deposit balances and $2.81 billion were collateralized deposits, for a net position of $4.61 billion. This represented approximately 27.6% of total deposits. In addition, net available liquidity exceeded uninsured and uncollateralized deposits by $1.04 billion as of September 30, 2024.

(in thousands)	As of September 30, 2024
Uninsured Deposits	$	8,179,825
Intercompany Subsidiary and Affiliate Balances	766,247
Collateralized Deposits	2,806,436
Net Uninsured Position	$	4,607,142
Total Available Liquidity	$	5,651,251
Net Uninsured Position	4,607,142
Net Available Liquidity in Excess of Uninsured Deposits	$	1,044,109

Asset/Liability Management. Our management actively measures and manages interest rate risk. The asset/liability committees of the boards of directors of our holding company and bank subsidiary are also responsible for approving our asset/liability management policies, overseeing the formulation and implementation of strategies to improve balance sheet positioning and earnings, and reviewing our interest rate sensitivity position.

Our objective is to manage liquidity in a way that ensures cash flow requirements of depositors and borrowers are met in a timely and orderly fashion while ensuring the reliance on various funding sources does not become so heavily weighted to any one source that it causes undue risk to the bank. Our liquidity sources are prioritized based on availability and ease of activation. Our current liquidity condition is a primary driver in determining our funding needs and is a key component of our asset and liability management.

Various sources of liquidity are available to meet the cash flow needs of depositors and borrowers. Our principal source of funds is core deposits, including checking, savings, money market accounts and certificates of deposit. We may also from time to time obtain wholesale funding through brokered deposits. Secondary sources of funding include advances from the Federal Home Loan Bank of Dallas, the Federal Reserve Bank Discount Window and other borrowings, such as through correspondent banking relationships. These secondary sources enable us to borrow funds at rates and terms which, at times, are more beneficial to us. Additionally, as needed, we can liquidate or utilize our available-for-sale investment portfolio as collateral to provide funds for an intermediate source of liquidity.

87

Interest Rate Sensitivity. Our primary business is banking and the resulting earnings, primarily net interest income, are susceptible to changes in market interest rates. It is management’s goal to maximize net interest income within acceptable levels of interest rate and liquidity risks.

A key element in the financial performance of financial institutions is the level and type of interest rate risk assumed. The single most significant measure of interest rate risk is the relationship of the repricing periods of earning assets and interest-bearing liabilities. The more closely the repricing periods are correlated, the less interest rate risk we assume. We use net interest income simulation modeling and economic value of equity as the primary methods in analyzing and managing interest rate risk.

One of the tools that our management uses to measure short-term interest rate risk is a net interest income simulation model. This analysis calculates the difference between net interest income forecasted using base market rates and using a rising and a falling interest rate scenario. The income simulation model includes various assumptions regarding the re-pricing relationships for each of our products. Many of our assets are floating rate loans, which are assumed to re-price immediately, and proportional to the change in market rates, depending on their contracted index. Some loans and investments include the opportunity of prepayment (embedded options), and accordingly, the simulation model uses indexes to estimate these prepayments and reinvest their proceeds at current yields. Our non-term deposit products re-price overnight in the model while we project certain other deposits by product type to have stable balances based on our deposit history. This accounts for the portion of our portfolio that moves more slowly than market rates and changes at our discretion.

This analysis indicates the impact of changes in net interest income for the given set of rate changes and assumptions. It assumes the balance sheet remains static and that its structure does not change over the course of the year. It does not account for all factors that impact this analysis, including changes by management to mitigate the impact of interest rate changes or secondary impacts such as changes to our credit risk profile as interest rates change.

Furthermore, loan prepayment rate estimates and spread relationships change regularly. Interest rate changes create changes in actual loan prepayment rates that will differ from the market estimates incorporated in this analysis. Changes that vary significantly from the assumptions may have significant effects on our net interest income.

For the rising and falling interest rate scenarios, the base market interest rate forecast was increased and decreased over twelve months by 200 and 100 basis points, respectively. At September 30, 2024, our net interest margin exposure related to these hypothetical changes in market interest rates was within the current guidelines established by us.

Table 26 presents our sensitivity to net interest income as of September 30, 2024 and September 30, 2023.

Table 26: Sensitivity of Net Interest Income

	Percentage Change from Base		Percentage Change from Base		September 30,
Interest Rate Scenario	September 30, 2024		September 30, 2023		2024 vs. 2023
Up 200 basis points	9.92	%	7.50	%	2.42	%
Up 100 basis points	5.17		3.80		1.37
Down 100 basis points	(5.78)		(4.70)		(1.08)
Down 200 basis points	(11.74)		(9.60)		(2.14)

There have been no material changes in our market risk exposure from September 30, 2023 to September 30, 2024. Our balance sheet mix has remained consistent, and there has been only one target rate change by the Federal Reserve reducing the target rate from 5.25% to 5.50% as of July 26, 2023, to 4.75% to 5.00% on September 18, 2024.

Item 4: CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls

Based on their evaluation as of the end of the period covered by this Quarterly Report on Form 10-Q, the Chief Executive Officer and Chief Financial Officer have concluded that the disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934) are effective to ensure that information required to be disclosed by us in reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms. Additionally, our disclosure controls and procedures were also effective in ensuring that information required to be disclosed in our Exchange Act report is accumulated and communicated to our management, including the Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosures.

88

Changes in Internal Control Over Financial Reporting

There were no changes in the Company’s internal controls over financial reporting during the quarter ended September 30, 2024, which have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II: OTHER INFORMATION

Item 1: Legal Proceedings

There are no material pending legal proceedings, other than ordinary routine litigation incidental to its business, to which the Company or its subsidiaries are a party or of which any of their property is the subject.

Item 1A: Risk Factors

There were no material changes from the risk factors set forth in Part I, Item 1A, “Risk Factors,” of our Form 10-K for the year ended December 31, 2023. See the discussion of our risk factors in the Form 10-K, as filed with the SEC. The risks described are not the only risks facing the Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.

Item 2: Unregistered Sales of Equity Securities and Use of Proceeds

During the three months ended September 30, 2024, the Company utilized a portion of its stock repurchase program most recently amended and approved by the Board of Directors on January 22, 2021, which authorized the repurchase of up to an additional 20,000,000 shares of the Company’s common stock. The following table sets forth information with respect to purchases made by or on behalf of the Company of shares of the Company’s common stock during the periods indicated:

Period	Number of Shares Purchased	Average Price Paid Per Share Purchased		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs(1)
July 1 through July 31, 2024	150,000	$	28.35	150,000	14,190,257
August 1 through August 31, 2024	500,000	26.35		500,000	13,690,257
September 1 through September 30, 2024	350,000	27.07		350,000	13,340,257
Total	1,000,000			1,000,000

(1)The above described stock repurchase program has no expiration date.

Item 3: Defaults Upon Senior Securities

Not applicable.

Item 4: Mine Safety Disclosures

Not applicable.

Item 5: Other Information

During the three months ended September 30, 2024, none of the Company’s directors or officers adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

89

Item 6: Exhibits

Exhibit No.	Description of Exhibit
3.1	Restated Articles of Incorporation of Home BancShares, Inc. (incorporated by reference to Exhibit 3.1 of Home BancShares’s registration statement on Form S-1 (File No. 333-132427), as amended)
3.2	Amendment to the Restated Articles of Incorporation of Home BancShares, Inc. (incorporated by reference to Exhibit 3.2 of Home BancShares’s registration statement on Form S-1 (File No. 333-132427), as amended)
3.3	Second Amendment to the Restated Articles of Incorporation of Home BancShares, Inc. (incorporated by reference to Exhibit 3.3 of Home BancShares’s registration statement on Form S-1 (File No. 333-132427), as amended)
3.4	Third Amendment to the Restated Articles of Incorporation of Home BancShares, Inc. (incorporated by reference to Exhibit 3.4 of Home BancShares’s registration statement on Form S-1 (File No. 333-132427), as amended)
3.5	Fourth Amendment to the Restated Articles of Incorporation of Home BancShares, Inc. (incorporated by reference to Exhibit 3.1 of Home BancShares’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2007, filed on August 8, 2007)
3.6	Fifth Amendment to the Restated Articles of Incorporation of Home BancShares, Inc. (incorporated by reference to Exhibit 4.6 of Home BancShares’s registration statement on Form S-3 (File No. 333-157165))
3.7	Certificate of Designations of Fixed Rate Cumulative Perpetual Preferred Stock, Series A, filed with the Secretary of State of the State of Arkansas on January 14, 2009 (incorporated by reference to Exhibit 3.1 of Home BancShares’s Current Report on Form 8-K, filed on January 21, 2009)
3.8	Seventh Amendment to the Restated Articles of Incorporation of Home BancShares, Inc. (incorporated by reference to Exhibit 3.1 of Home BancShares’s Current Report on Form 8-K filed on April 19, 2013)
3.9	Eighth Amendment to the Restated Articles of Incorporation of Home BancShares, Inc. (incorporated by reference to Exhibit 3.1 of Home BancShares’s Current Report on Form 8-K filed on April 22, 2016)
3.10	Ninth Amendment to the Restated Articles of Incorporation of Home BancShares, Inc. (incorporated by reference to Exhibit 3.1 of Home BancShares’s Current Report on Form 8-K filed on April 23, 2019)
3.11	Tenth Amendment to the Restated Articles of Incorporation of Home BancShares, Inc. (incorporated by reference to Exhibit 4.11 of Home BancShares’s registration statement on Form S-8 (File No. 333-264409))
3.12	Amended and Restated Bylaws of Home BancShares, Inc. (incorporated by reference to Exhibit 3.1 of Home BancShares’s Current Report on Form 8-K filed on January 28, 2021)
3.13	Amendment to the Amended and Restated Bylaws of Home BancShares, Inc. (incorporated by reference to Exhibit 3.1 of Home BancShares’s Current Report on Form 8-K filed on April 22, 2022)
4.1	Specimen Stock Certificate representing Home BancShares, Inc. Common Stock (incorporated by reference to Exhibit 4.12 of the Company’s registration statement on Form S-3ASR (File No. 333-261495))
4.2	Instruments defining the rights of security holders including indentures. Home BancShares hereby agrees to furnish to the SEC upon request copies of instruments defining the rights of holders of long-term debt of Home BancShares and its consolidated subsidiaries. No issuance of debt exceeds ten percent of the assets of Home BancShares and its subsidiaries on a consolidated basis.
15	Acknowledgment of Independent Registered Public Accounting Firm*
31.1	CEO Certification Pursuant Rule 13a-14(a)/15d-14(a)*
31.2	CFO Certification Pursuant Rule 13a-14(a)/15d-14(a)*
32.1	CEO Certification Pursuant 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the Sarbanes – Oxley Act of 2002*
32.2	CFO Certification Pursuant 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the Sarbanes – Oxley Act of 2002*
101.INS	Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.*

90

101.SCH	Inline XBRL Taxonomy Extension Schema Document*
101.CAL	InlineXBRL Taxonomy Extension Calculation Linkbase Document*
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document*
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document*
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document*
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

*    Filed herewith

**    The disclosure schedules referenced in the Agreement and Plan of Merger have been omitted pursuant to Item 601(a)(5) of SEC Regulation S-K. The Company hereby agrees to furnish supplementally a copy of any omitted disclosure schedule to the SEC upon request.

91

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

HOME BANCSHARES, INC.

(Registrant)

Date:	November 1, 2024	/s/ John W. Allison
		John W. Allison, Chairman and Chief Executive Officer
Date:	November 1, 2024	/s/ Brian S. Davis
		Brian S. Davis, Chief Financial Officer
Date:	November 1, 2024	/s/ Jennifer C. Floyd
		Jennifer C. Floyd, Chief Accounting Officer

92

EX-15

Exhibit 15

Acknowledgment of Independent Registered

Public Accounting Firm

We acknowledge the incorporation by reference in Forms S-8 (Nos. 333-136645, 333-148763, 333-188591, 333-211116, 333-226608, 333-229805 and 333-264409) and Form S-3 (No. 333-261495) of Home BancShares, Inc. (Company) of our report dated November 1, 2024, included with the Quarterly Report on Form 10-Q for the quarter ended September 30, 2024. Pursuant to Rule 436(c) under the Securities Act of 1933, this report should not be considered part of the registration statement prepared or certified by us within the meaning of Section 7 and 11 of the Act.

Forvis Mazars, LLP

Little Rock, Arkansas

November 1, 2024

EX-31.1

Exhibit 31.1

I, John W. Allison, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Home BancShares, Inc. for the period ended September 30, 2024;

2.Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3.Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this quarterly report based on such evaluation; and

d)disclosed in this quarterly report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 1, 2024	/s/ John W. Allison
	John W. Allison
	Chief Executive Officer

EX-31.2

Exhibit 31.2

I, Brian S. Davis, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Home BancShares, Inc. for the period ended September 30, 2024;

2.Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3.Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this quarterly report based on such evaluation; and

d)disclosed in this quarterly report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 1, 2024	/s/ Brian S. Davis
	Brian S. Davis
	Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the accompanying Quarterly Report of Home BancShares, Inc. (the Company) on Form 10-Q for the period ended September 30, 2024, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, John W. Allison, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, to my knowledge, that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 1, 2024	/s/ John W. Allison
	John W. Allison
	Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the accompanying Quarterly Report of Home BancShares, Inc. (the Company) on Form 10-Q for the period ended September 30, 2024, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Brian S. Davis, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, to my knowledge, that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 1, 2024	/s/ Brian S. Davis
	Brian S. Davis
	Chief Financial Officer

XML

Cover - shares	9 Months Ended
	Sep. 30, 2024	Oct. 31, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Entity File Number	001-41093
Entity Registrant Name	HOME BANCSHARES, INC.
Entity Incorporation, State or Country Code	AR
Entity Tax Identification Number	71-0682831
Entity Address, Address Line One	719 Harkrider, Suite 100
Entity Address, City or Town	Conway
Entity Address, State or Province	AR
Entity Address, Postal Zip Code	72032
City Area Code	501
Local Phone Number	339-2929
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	HOMB
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		198,798,186
Entity Central Index Key	0001331520
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Amendment Flag	false

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Assets
Cash and due from banks	$ 265,408	$ 226,363
Interest-bearing deposits with other banks	752,269	773,850
Cash and cash equivalents	1,017,677	1,000,213
Fed funds sold	6,425	5,100
Investment securities — available-for-sale, net of allowance for credit losses of $2,195 and $2,525 at September 30, 2024 and December 31, 2023, respectively (amortized cost of $3,529,325 and $3,840,927 at September 30, 2024 and December 31, 2023, respectively)	3,270,620	3,507,841
Investment securities — held-to-maturity, net of allowance for credit losses of $2,005 at both September 30, 2024 and December 31, 2023	1,277,090	1,281,982
Total investment securities	4,547,710	4,789,823
Loans receivable	14,823,979	14,424,728
Allowance for credit losses	(312,574)	(288,234)
Loans receivable, net	14,511,405	14,136,494
Bank premises and equipment, net	388,776	393,300
Foreclosed assets held for sale	43,040	30,486
Cash value of life insurance	219,353	214,516
Accrued interest receivable	118,871	118,966
Deferred tax asset, net	176,629	197,164
Goodwill	1,398,253	1,398,253
Core deposit intangibles	42,395	48,770
Other assets	352,583	323,573
Total assets	22,823,117	22,656,658
Deposits:
Demand and non-interest-bearing	3,937,168	4,085,501
Savings and interest-bearing transaction accounts	10,966,426	11,050,347
Time deposits	1,802,116	1,651,863
Total deposits	16,705,710	16,787,711
Securities sold under agreements to repurchase	179,416	142,085
FHLB and other borrowed funds	1,300,750	1,301,300
Accrued interest payable and other liabilities	238,058	194,653
Subordinated debentures	439,394	439,834
Total liabilities	18,863,328	18,865,583
Stockholders’ equity:
Common stock, par value $0.01; shares authorized 300,000,000 in 2024 and 2023; shares issued and outstanding 198,878,950 in 2024 and 201,526,494 in 2023	1,989	2,015
Capital surplus	2,272,100	2,348,023
Retained earnings	1,880,562	1,690,112
Accumulated other comprehensive loss	(194,862)	(249,075)
Total stockholders’ equity	3,959,789	3,791,075
Total liabilities and stockholders’ equity	$ 22,823,117	$ 22,656,658

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Allowance for credit losses	$ 2,195	$ 2,525
Amortized cost	3,529,325	3,840,927
Allowance for credit losses	$ 2,005	$ 2,005
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	300,000,000	300,000,000
Common stock, shares issued (in shares)	198,878,950	201,526,494
Common stock, shares outstanding (in shares)	198,878,950	201,526,494

XML

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Interest income:
Loans	$ 281,977	$ 249,464	$ 821,595	$ 729,613
Investment securities
Taxable	31,006	34,520	96,822	104,559
Tax-exempt	7,704	7,868	23,276	23,763
Deposits – other banks	12,096	2,328	35,188	10,742
Federal funds sold	62	82	182	156
Total interest income	332,845	294,262	977,063	868,833
Interest expense:
Interest on deposits	97,785	78,698	286,074	208,007
Federal funds purchased	1	1	1	3
FHLB and other borrowed funds	14,383	8,161	42,914	20,947
Securities sold under agreements to repurchase	1,335	1,344	4,102	3,333
Subordinated debentures	4,121	4,121	12,340	12,368
Total interest expense	117,625	92,325	345,431	244,658
Net interest income	215,220	201,937	631,632	624,175
Provision for credit losses on loans	18,200	2,800	31,700	6,300
Provision for (recovery of) credit losses on unfunded commitments	1,000	(1,500)	0	(1,500)
(Recovery of) provision for credit losses on investment securities	(330)	0	(330)	1,683
Total credit loss expense	18,870	1,300	31,370	6,483
Net interest income after credit loss expense	196,350	200,637	600,262	617,692
Non-interest income:
Trust fees	4,403	4,660	14,191	13,576
Mortgage lending income	4,437	3,132	12,271	8,353
Insurance commissions	595	562	1,668	1,606
Increase in cash value of life insurance	1,161	1,170	3,635	3,485
Dividends from FHLB, FRB, FNBB & other	2,637	2,916	8,642	8,632
Gain on sale of SBA loans	145	97	399	236
Gain on sale of branches, equipment and other assets, net	32	0	2,076	924
Gain on OREO, net	85	0	151	319
Fair value adjustment for marketable securities	1,392	4,507	2,121	(6,118)
Other income	7,514	6,179	21,552	33,172
Total non-interest income	42,779	43,413	127,352	127,086
Non-interest expense:
Salaries and employee benefits	58,861	64,512	180,198	193,536
Occupancy and equipment	14,546	15,463	43,505	45,338
Data processing expense	9,088	9,103	27,170	27,222
Other operating expenses	27,550	25,684	83,853	79,592
Total non-interest expense	110,045	114,762	334,726	345,688
Income before income taxes	129,084	129,288	392,888	399,090
Income tax expense	29,046	30,835	91,211	92,404
Net income	$ 100,038	$ 98,453	$ 301,677	$ 306,686
Basic earnings per share (in dollars per share)	$ 0.50	$ 0.49	$ 1.51	$ 1.51
Diluted earnings per share (in dollars per share)	$ 0.50	$ 0.49	$ 1.51	$ 1.51
Service charges on deposit accounts
Non-interest income:
Service charges	$ 9,888	$ 10,062	$ 29,288	$ 29,135
Other service charges and fees
Non-interest income:
Service charges	$ 10,490	$ 10,128	$ 31,358	$ 33,766

XML

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 100,038	$ 98,453	$ 301,677	$ 306,686
Net unrealized gain (loss) on available-for-sale securities	88,303	(76,279)	74,062	(59,353)
Other comprehensive income (loss) before tax effect	88,303	(76,279)	74,062	(59,353)
Tax effect on other comprehensive (income) loss	(21,366)	18,427	(19,849)	14,281
Other comprehensive income (loss)	66,937	(57,852)	54,213	(45,072)
Comprehensive income	$ 166,975	$ 40,601	$ 355,890	$ 261,614

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Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Capital Surplus	Retained Earnings	Accumulated Other Comprehensive Loss
Beginning Balance at Dec. 31, 2022	$ 3,526,362	$ 2,034	$ 2,386,699	$ 1,443,087	$ (305,458)
Comprehensive income:
Net income	102,962			102,962
Other comprehensive income (loss)	49,157				49,157
Net issuance of shares of common stock from exercise of stock options	86	1	85
Repurchase of shares of common stock	(13,540)	(6)	(13,534)
Share-based compensation net issuance/forfeiture of shares of restricted common stock	2,507	3	2,504
Cash dividends - Common Stock	(36,649)			(36,649)
Ending balance at Mar. 31, 2023	3,630,885	2,032	2,375,754	1,509,400	(256,301)
Beginning Balance at Dec. 31, 2022	3,526,362	2,034	2,386,699	1,443,087	(305,458)
Comprehensive income:
Net income	306,686
Other comprehensive income (loss)	(45,072)
Ending balance at Sep. 30, 2023	3,654,874	2,023	2,363,210	1,640,171	(350,530)
Beginning Balance at Mar. 31, 2023	3,630,885	2,032	2,375,754	1,509,400	(256,301)
Comprehensive income:
Net income	105,271			105,271
Other comprehensive income (loss)	(36,377)				(36,377)
Net issuance of shares of common stock from exercise of stock options	275		275
Repurchase of shares of common stock	(11,809)	(5)	(11,804)
Share-based compensation net issuance/forfeiture of shares of restricted common stock	2,334	(1)	2,335
Cash dividends - Common Stock	(36,495)			(36,495)
Ending balance at Jun. 30, 2023	3,654,084	2,026	2,366,560	1,578,176	(292,678)
Comprehensive income:
Net income	98,453			98,453
Other comprehensive income (loss)	(57,852)				(57,852)
Net issuance of shares of common stock from exercise of stock options	70		70
Repurchase of shares of common stock	(5,658)	(3)	(5,655)
Share-based compensation net issuance/forfeiture of shares of restricted common stock	2,235	0	2,235
Cash dividends - Common Stock	(36,458)			(36,458)
Ending balance at Sep. 30, 2023	3,654,874	2,023	2,363,210	1,640,171	(350,530)
Beginning Balance at Dec. 31, 2023	3,791,075	2,015	2,348,023	1,690,112	(249,075)
Comprehensive income:
Net income	100,109			100,109
Other comprehensive income (loss)	(22,350)				(22,350)
Net issuance of shares of common stock from exercise of stock options	671	1	670
Repurchase of shares of common stock	(24,017)	(10)	(24,007)
Share-based compensation net issuance/forfeiture of shares of restricted common stock	2,275	2	2,273
Excise tax from repurchase of common stock	(135)		(135)
Cash dividends - Common Stock	(36,227)			(36,227)
Ending balance at Mar. 31, 2024	3,811,401	2,008	2,326,824	1,753,994	(271,425)
Beginning Balance at Dec. 31, 2023	3,791,075	2,015	2,348,023	1,690,112	(249,075)
Comprehensive income:
Net income	301,677
Other comprehensive income (loss)	54,213
Ending balance at Sep. 30, 2024	3,959,789	1,989	2,272,100	1,880,562	(194,862)
Beginning Balance at Mar. 31, 2024	3,811,401	2,008	2,326,824	1,753,994	(271,425)
Comprehensive income:
Net income	101,530			101,530
Other comprehensive income (loss)	9,626				9,626
Net issuance of shares of common stock from exercise of stock options	(1)	1	(2)
Repurchase of shares of common stock	(32,604)	(14)	(32,590)
Share-based compensation net issuance/forfeiture of shares of restricted common stock	1,948	2	1,946
Excise tax from repurchase of common stock	(285)		(285)
Cash dividends - Common Stock	(36,112)			(36,112)
Ending balance at Jun. 30, 2024	3,855,503	1,997	2,295,893	1,819,412	(261,799)
Comprehensive income:
Net income	100,038			100,038
Other comprehensive income (loss)	66,937				66,937
Net issuance of shares of common stock from exercise of stock options	699	1	698
Repurchase of shares of common stock	(26,932)	(10)	(26,922)
Share-based compensation net issuance/forfeiture of shares of restricted common stock	2,495	1	2,494
Excise tax from repurchase of common stock	(63)		(63)
Cash dividends - Common Stock	(38,888)			(38,888)
Ending balance at Sep. 30, 2024	$ 3,959,789	$ 1,989	$ 2,272,100	$ 1,880,562	$ (194,862)

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Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023
Statement of Stockholders' Equity [Abstract]
Net issuance of shares of common stock from exercise of stock options (in shares)	95,852	149,507	76,542	11,538	15,575	66,451
Common stock shares repurchased (in shares)	1,000,000	1,400,094	1,025,934	260,000	560,849	590,000
Issuance of restricted common stock (in shares)	36,833	200,000	219,750	1,000	50,000	258,000
Common stock, cash dividends per share (in dollars per share)	$ 0.195	$ 0.18	$ 0.18	$ 0.18	$ 0.18	$ 0.18
Treasury Stock, Value, Acquired, Tax Expense	$ (63)	$ (285)	$ (135)

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Operating Activities
Net income	$ 301,677	$ 306,686
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation & amortization	21,994	22,677
(Increase) decrease in value of equity securities	(2,121)	6,118
Amortization of securities, net	11,083	12,441
Accretion of purchased loans	(6,523)	(8,263)
Share-based compensation	6,718	7,076
Gain on assets	(2,627)	(1,479)
Provision for credit losses - loans	31,700	6,300
Recovery of credit losses - unfunded commitments	0	(1,500)
(Recovery of) provision for credit losses - investment securities	(330)	1,683
Deferred income tax effect	686	861
Increase in cash value of life insurance	(3,635)	(3,485)
Originations of mortgage loans held for sale	(467,339)	(365,412)
Proceeds from sales of mortgage loans held for sale	477,185	315,520
Changes in assets and liabilities:
Accrued interest receivable	95	(7,747)
Other assets	(26,428)	(7,293)
Accrued interest payable and other liabilities	43,405	(20,010)
Net cash provided by operating activities	385,540	264,173
Investing Activities
Net increase in federal funds sold	(1,325)	(3,925)
Net (increase) decrease in loans	(428,985)	181,505
Purchases of investment securities – available-for-sale	(62,643)	(8,433)
Proceeds from maturities of investment securities – available-for-sale	363,011	504,220
Proceeds from maturities of investment securities – held-to-maturity	5,054	4,383
Proceeds from sales of equity securities	0	1,522
Purchase of other investments	(445)	(1,798)
Proceeds from foreclosed assets held for sale	1,475	846
Proceeds from sale of SBA loans	5,573	3,454
Purchases of premises and equipment	(24,277)	(17,503)
Proceeds from sales of premises and equipment	14,818	10,724
(Purchase of) return of investment on cash value of life insurance, net	(1,218)	3,813
Net cash (used in) provided by investing activities	(128,962)	678,808
Financing Activities
Net decrease in deposits	(82,001)	(1,420,038)
Net increase in securities sold under agreements to repurchase	37,331	28,974
Decrease in FHLB and other borrowed funds	(1,400,550)	(1,065,000)
Increase in FHLB and other borrowed funds	1,400,000	1,416,550
Proceeds from exercise of stock options, net	1,369	431
Repurchase of common stock	(84,036)	(31,007)
Dividends paid on common stock	(111,227)	(109,602)
Net cash used in financing activities	(239,114)	(1,179,692)
Net change in cash and cash equivalents	17,464	(236,711)
Cash and cash equivalents – beginning of year	1,000,213	724,790
Cash and cash equivalents – end of period	$ 1,017,677	$ 488,079

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Nature of Operations and Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Operations and Summary of Significant Accounting Policies

1. Nature of Operations and Summary of Significant Accounting Policies

Nature of Operations

Home BancShares, Inc. (the “Company” or “HBI”) is a bank holding company headquartered in Conway, Arkansas. The Company is primarily engaged in providing a full range of banking services to individual and corporate customers through its wholly-owned community bank subsidiary – Centennial Bank (sometimes referred to as “Centennial” or the “Bank”). The Bank has branch locations in Arkansas, Florida, South Alabama, Texas and New York City. The Company is subject to competition from other financial institutions. The Company also is subject to the regulation of certain federal and state agencies and undergoes periodic examinations by those regulatory authorities.

A summary of the significant accounting policies of the Company follows:

Operating Segments

Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Bank is the only significant subsidiary upon which management makes decisions regarding how to allocate resources and assess performance. Each of the branches of the Bank provides a group of similar banking services, including such products and services as commercial, real estate and consumer loans, time deposits, checking and savings accounts. The individual bank branches have similar operating and economic characteristics. While the chief decision maker monitors the revenue streams of the various products, services and branch locations, operations are managed, and financial performance is evaluated on a company-wide basis. Accordingly, all of the banking services and branch locations are considered by management to be aggregated into one reportable operating segment.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses, the valuation of investment securities, the valuation of foreclosed assets and the valuations of assets acquired, and liabilities assumed in business combinations. In connection with the determination of the allowance for credit losses and the valuation of foreclosed assets, management obtains independent appraisals for significant properties.

Principles of Consolidation

The consolidated financial statements include the accounts of HBI and its subsidiaries. Significant intercompany accounts and transactions have been eliminated in consolidation.

Reclassifications

Various items within the accompanying consolidated financial statements for previous years have been reclassified to provide more comparative information. These reclassifications had no effect on net earnings or stockholders’ equity.

Interim financial information

The accompanying unaudited consolidated financial statements have been prepared in condensed format, and therefore do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.

The information furnished in these interim statements reflects all adjustments which are, in the opinion of management, necessary for a fair statement of the results for each respective period presented. Such adjustments are of a normal recurring nature. The results of operations in the interim statements are not necessarily indicative of the results that may be expected for any other quarter or for the full year. The interim financial information should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2023 Form 10-K, filed with the Securities and Exchange Commission on February 26, 2024.

Loans Receivable and Allowance for Credit Losses

Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding principal balance adjusted for any charge-offs, deferred fees or costs on originated loans. Interest income on loans is accrued over the term of the loans based on the principal balance outstanding. Loan origination fees and direct origination costs are capitalized and recognized as adjustments to yield on the related loans.

The allowance for credit losses on loans receivable is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the uncollectability of a loan balance is confirmed and expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off.

Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in the national unemployment rate, gross domestic product, national retail sales index, FHFA housing price index and rental vacancy rate index.

The allowance for credit losses is measured based on call report segment as these types of loans exhibit similar risk characteristics. The identified loan segments are as follows:

•1-4 family construction

•All other construction

•1-4 family revolving home equity lines of credit (“HELOC”) & junior liens

•1-4 family senior liens

•Multifamily

•Owner occupied commercial real estate

•Non-owner occupied commercial real estate

•Commercial & industrial, agricultural, non-depository financial institutions, purchase/carry securities, other

•Consumer auto

•Other consumer

•Other consumer - Shore Premier Finance ("SPF")

The allowance for credit losses for each segment is measured through the use of the discounted cash flow method. Loans evaluated individually that are considered to be collateral dependent are not included in the collective evaluation. For these loans, where the Company has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the loan to be provided substantially through the operation or sale of the collateral, the allowance for credit losses is measured based on the difference between the fair value of the collateral, net of estimated costs to sell, and the amortized cost basis of the loan as of the measurement date. When repayment is expected to be from the operation of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the loan exceeds the present value of expected cash flows from the operation of the collateral. The allowance for credit losses may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the loan, net of estimated costs to sell. For individually analyzed loans which are not considered to be collateral dependent, an allowance is recorded based on the loss rate for the respective pool within the collective evaluation.

Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments and curtailments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies:

•Management has a reasonable expectation at the reporting date that restructured loans made to borrowers experiencing financial difficulty will be executed with an individual borrower.

•The extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company.

Management qualitatively adjusts model results for risk factors that are not considered within our modeling processes but are nonetheless relevant in assessing the expected credit losses within our loan pools. These qualitative factors ("Q-Factors") and other qualitative adjustments may increase or decrease management's estimate of expected credit losses by a calculated percentage or amount based upon the estimated level of risk. The various risks that may be considered in making Q-Factor and other qualitative adjustments include, among other things, the impact of (i) changes in lending policies, procedures and strategies; (ii) changes in nature and volume of the portfolio; (iii) staff experience; (iv) changes in volume and trends in classified loans, delinquencies and nonaccruals; (v) concentration risk; (vi) trends in underlying collateral values; (vii) external factors such as competition, legal and regulatory environment; (viii) changes in the quality of the loan review system; and (ix) economic conditions.

Loans are placed on non-accrual status when management believes that the borrower’s financial condition, after giving consideration to economic and business conditions and collection efforts, is such that collection of interest is doubtful, or generally when loans are 90 days or more past due. Loans are charged against the allowance for credit losses when management believes that the collectability of the principal is unlikely. Accrued interest related to non-accrual loans is generally charged against the allowance for credit losses when accrued in prior years and reversed from interest income if accrued in the current year. Interest income on non-accrual loans may be recognized to the extent cash payments are received, although the majority of payments received are usually applied to principal. Non-accrual loans are generally returned to accrual status when principal and interest payments are less than 90 days past due, the customer has made required payments for at least six months, and we reasonably expect to collect all principal and interest.

Purchased loans that have experienced more than insignificant credit deterioration since origination are purchase credit deteriorated (“PCD”) loans. An allowance for credit losses is determined using the same methodology as other loans. The Company develops separate PCD models for each loan segment with PCD loans not individually analyzed for credit losses. These models utilize a peer group benchmark in order to determine the probability of default and loss given default to be used in the calculation. The sum of the loan’s purchase price and allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a non-credit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the allowance for credit losses are recorded through the provision for credit losses.

For further discussion of the Company’s acquisitions, see Note 2 to the Notes to Consolidated Financial Statements.

Allowance for Credit Losses on Off-Balance Sheet Credit Exposures

The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on off-balance sheet credit exposures is adjusted as a provision for or recovery of credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life.

Earnings per Share

Basic earnings per share is computed based on the weighted-average number of shares outstanding during each year. Diluted earnings per share is computed using the weighted-average shares and all potential dilutive shares outstanding during the period. The following table sets forth the computation of basic and diluted earnings per share (“EPS”) for the following periods:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(In thousands)
Net income	$	100,038	$	98,453	$	301,677	$	306,686
Average shares outstanding	199,380		202,526		200,300		202,921
Effect of common stock options	81		124		130		147
Average diluted shares outstanding	199,461		202,650		200,430		203,068
Basic earnings per share	$	0.50	$	0.49	$	1.51	$	1.51
Diluted earnings per share	$	0.50	$	0.49	$	1.51	$	1.51

The impact of anti-dilutive shares to the diluted earnings per share calculation was considered immaterial for the periods ended September 30, 2024 and 2023.

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Business Combinations

9 Months Ended

Sep. 30, 2024

Business Combinations [Abstract]

Business Combinations

2. Business Combinations

Acquisition of Happy Bancshares, Inc.

The Company's most recent acquisition occurred on April 1, 2022, when the Company completed the acquisition of Happy Bancshares, Inc. (“Happy”), and merged Happy State Bank into Centennial Bank. For additional discussion regarding the acquisition of Happy, see "Management's Discussion and Analysis of Financial Condition and Results of Operations" and Note 2 "Business Combinations" in the Notes to Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2023.

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Investment Securities

9 Months Ended

Sep. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Investment Securities

3. Investment Securities

The following table summarizes the amortized cost and fair value of securities that are classified as available-for-sale and held-to-maturity:

	September 30, 2024
	Available-for-Sale
	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized (Losses)		Estimated Fair Value
	(In thousands)
U.S. government-sponsored enterprises	$	321,233	$	—	$	321,233	$	1,800	$	(11,248)	$	311,785
U.S. government-sponsored mortgage-backed securities	1,574,430		—		1,574,430		1,105		(150,070)		1,425,465
Private mortgage-backed securities	186,916		—		186,916		115		(9,090)		177,941
Non-government-sponsored asset backed securities	264,497		—		264,497		646		(2,945)		262,198
State and political subdivisions	966,644		—		966,644		1,094		(66,804)		900,934
Other securities	215,605		(2,195)		213,410		539		(21,652)		192,297
Total	$	3,529,325	$	(2,195)	$	3,527,130	$	5,299	$	(261,809)	$	3,270,620

	September 30, 2024
	Held-to-Maturity
	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized (Losses)		Estimated Fair Value
	(In thousands)
U.S. government-sponsored enterprises	$	43,490	$	—	$	43,490	$	—	$	(1,712)	$	41,778
U.S. government-sponsored mortgage-backed securities	125,920		—		125,920		754		(2,288)		124,386
State and political subdivisions	1,109,685		(2,005)		1,107,680		197		(79,586)		1,028,291
Total	$	1,279,095	$	(2,005)	$	1,277,090	$	951	$	(83,586)	$	1,194,455

	December 31, 2023
	Available-for-Sale
	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized (Losses)		Estimated Fair Value
	(In thousands)
U.S. government-sponsored enterprises	$	361,494	$	—	$	361,494	$	2,247	$	(17,093)	$	346,648
U.S. government-sponsored mortgage-backed securities	1,711,668		—		1,711,668		310		(191,557)		1,520,421
Private mortgage-backed securities	191,522		—		191,522		—		(16,117)		175,405
Non-government-sponsored asset backed securities	370,203				370,203		821		(7,551)		363,473
State and political subdivisions	990,318		—		990,318		1,938		(75,931)		916,325
Other securities	215,722		(2,525)		213,197		402		(28,030)		185,569
Total	$	3,840,927	$	(2,525)	$	3,838,402	$	5,718	$	(336,279)	$	3,507,841

	December 31, 2023
	Held-to-Maturity
	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized (Losses)		Estimated Fair Value
	(In thousands)
U.S. government-sponsored enterprises	$	43,285	$	—	$	43,285	$	—	$	(2,607)	$	40,678
U.S. government-sponsored mortgage-backed securities	130,278		—		130,278		106		(4,362)		126,022
State and political subdivisions	1,110,424		(2,005)		1,108,419		456		(105,094)		1,003,781
Total	$	1,283,987	$	(2,005)	$	1,281,982	$	562	$	(112,063)	$	1,170,481

Assets, principally investment securities, having a carrying value of approximately $2.37 billion and $3.57 billion at September 30, 2024 and December 31, 2023, respectively, were pledged to secure public deposits, as collateral for repurchase agreements, and for other purposes required or permitted by law. Investment securities pledged as collateral for repurchase agreements totaled approximately $179.4 million and $142.1 million at September 30, 2024 and December 31, 2023, respectively.

The amortized cost and estimated fair value of securities classified as available-for-sale and held-to-maturity at September 30, 2024, by contractual maturity, are shown below. Expected maturities could differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.

	Available-for-Sale				Held-to-Maturity
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
	(In thousands)
Due in one year or less	$	29,837	$	29,449	$	—	$	—
Due after one year through five years	256,357		245,060		43,548		42,380
Due after five years through ten years	377,774		346,905		341,352		321,196
Due after ten years	839,514		783,602		768,275		706,493
U.S. government-sponsored mortgage-backed securities	1,574,430		1,425,465		125,920		124,386
Private mortgage-backed securities	186,916		177,941		—		—
Non-government-sponsored asset backed securities	264,497		262,198		—		—
Total	$	3,529,325	$	3,270,620	$	1,279,095	$	1,194,455

During the three and nine months ended September 30, 2024 and 2023, no available-for-sale securities were sold.

The following table shows gross unrealized losses and estimated fair value of investment securities classified as available-for-sale and held-to-maturity, aggregated by investment category and length of time that individual investment securities have been in a continuous loss position as of September 30, 2024 and December 31, 2023.

	September 30, 2024
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
Available-for-sale:
U.S. government-sponsored enterprises	$	18,911	$	(132)	$	171,503	$	(11,116)	$	190,414	$	(11,248)
U.S. government-sponsored mortgage-backed securities	2,314		(23)		1,322,911		(150,047)		1,325,225		(150,070)
Private mortgage-backed securities	—		—		168,230		(9,090)		168,230		(9,090)
Non-government-sponsored asset backed securities	—		—		106,450		(2,945)		106,450		(2,945)
State and political subdivisions	22,859		(504)		771,340		(66,300)		794,199		(66,804)
Other securities	6,976		(1,079)		171,574		(20,573)		178,550		(21,652)
Total	$	51,060	$	(1,738)	$	2,712,008	$	(260,071)	$	2,763,068	$	(261,809)
Held-to-maturity:
U.S. government-sponsored enterprises	$	—	$	—	$	41,779	$	(1,712)	$	41,779	$	(1,712)
U.S. government-sponsored mortgage-backed securities	—		—		72,591		(2,288)		72,591		(2,288)
State and political subdivisions	22,950		(483)		994,010		(79,103)		1,016,960		(79,586)
Total	$	22,950	$	(483)	$	1,108,380	$	(83,103)	$	1,131,330	$	(83,586)

	December 31, 2023
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
Available-for-sale:
U.S. government-sponsored enterprises	$	2,742	$	(2)	$	180,569	$	(17,091)	$	183,311	$	(17,093)
U.S. government-sponsored mortgage-backed securities	102,831		(2,166)		1,392,318		(189,391)		1,495,149		(191,557)
Private mortgage-backed securities	9,298		(226)		166,107		(15,891)		175,405		(16,117)
Non-government-sponsored asset backed securities	—		—		213,838		(7,551)		213,838		(7,551)
State and political subdivisions	28,596		(400)		769,860		(75,531)		798,456		(75,931)
Other securities	—		—		164,430		(28,030)		164,430		(28,030)
Total	$	143,467	$	(2,794)	$	2,887,122	$	(333,485)	$	3,030,589	$	(336,279)
Held-to-maturity:
U.S. government-sponsored enterprises	$	—	$	—	$	40,677	$	(2,607)	$	40,677	$	(2,607)
U.S. government-sponsored mortgage-backed securities	48,498		(861)		65,573		(3,501)		114,071		(4,362)
State and political subdivisions	21,493		(297)		956,578		(104,797)		978,071		(105,094)
Total	$	69,991	$	(1,158)	$	1,062,828	$	(110,905)	$	1,132,819	$	(112,063)

Debt securities available-for-sale ("AFS") are reported at fair value with unrealized holding gains and losses reported as a separate component of stockholders’ equity and other comprehensive income (loss), net of taxes. Securities that are held as available-for-sale are used as a part of our asset/liability management strategy. Securities that may be sold in response to interest rate changes, changes in prepayment risk, the need to increase regulatory capital, and other similar factors are classified as available-for-sale. The Company evaluates all securities quarterly to determine if any securities in a loss position require a provision for credit losses. The Company first assesses whether it intends to sell or is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For securities that do not meet these criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, and changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows

expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. The Company has made the election to exclude accrued interest receivable on AFS securities from the estimate of credit losses and report accrued interest separately on the consolidated balance sheets. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectability of a security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

Debt securities held-to-maturity ("HTM"), which include any security for which we have the positive intent and ability to hold until maturity, are reported at historical cost adjusted for amortization of premiums and accretion of discounts. Premiums and discounts are amortized/accreted to the call date to interest income using the constant effective yield method over the estimated life of the security. The Company evaluates all securities quarterly to determine if any securities in a loss position require a provision for credit losses. The Company measures expected credit losses on HTM securities on a collective basis by major security type, with each type sharing similar risk characteristics. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The Company has made the election to exclude accrued interest receivable on HTM securities from the estimate of credit losses and report accrued interest separately on the consolidated balance sheets. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectability of a security is confirmed.

During the quarter ended September 30, 2024, the Company recovered $330,000 in AFS reserves due to an improvement in the unrealized loss position of one of the Company's subordinated debt investments. For both the three and nine month periods ended September 30, 2024, the Company determined the $2.0 million allowance for credit losses on the held-to-maturity portfolio was adequate. Therefore, no additional provision was considered necessary for the HTM portfolio.

Available-for-Sale Investment Securities
	September 30, 2024		December 31, 2023
Allowance for credit losses:	(In thousands)
Beginning balance	$	2,525	$	842
(Recovery of) provision for credit loss	(330)		1,683
Balance, September 30	$	2,195	$	2,525
Provision for credit loss			—
Balance, December 31, 2023			$	2,525

Held-to-Maturity Investment Securities
	September 30, 2024		December 31, 2023
Allowance for credit losses:	(In thousands)
Beginning balance	$	2,005	$	2,005
Provision for credit loss	—		—
Balance, September 30	$	2,005	$	2,005
Provision for credit loss			—
Balance, December 31, 2023			$	2,005

For the nine months ended September 30, 2024, the Company had available-for-sale investment securities with approximately $261.8 million in unrealized losses, of which $260.1 million had been in continuous loss positions for more than twelve months. With the exception of the subordinated debt investment securities which were downgraded during 2023 resulting in the allowance, the Company’s assessments indicated the cause of the market depreciation was primarily due to the change in interest rates and not the issuer’s financial condition or downgrades by rating agencies. In addition, approximately 38.6% of the principal balance from the Company’s investment portfolio will mature or are expected to pay down within five years or less. As a result, the Company has the ability and intent to hold such securities until maturity.

As of September 30, 2024, the Company's available-for-sale securities portfolio consisted of 1,550 investment securities, 1,256 of which were in an unrealized loss position. As noted in the table above, the total amount of the unrealized loss was $261.8 million. The U.S. government-sponsored enterprises portfolio contained unrealized losses of $11.2 million on 54 securities. The U.S. government-sponsored mortgage-backed securities portfolio contained $150.1 million of unrealized losses on 645 securities, and the private mortgage-backed securities portfolio contained $9.1 million of unrealized losses on 31 securities. The non-government-sponsored asset backed securities portfolio contained $2.9 million of unrealized losses on 24 securities. The state and political subdivisions portfolio contained $66.8 million of unrealized losses on 439 securities. In addition, the other securities portfolio contained $21.7 million of unrealized losses on 63 securities. With the exception of the investments for which an allowance for credit losses has been established, the unrealized losses on the Company's investments were primarily a result of interest rate changes, and the Company expects to recover the amortized cost basis over the term of the securities. The Company has determined that, as of September 30, 2024, an additional provision for credit losses is not necessary because the decline in market value was attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity.

As of September 30, 2024, the Company's held-to-maturity securities portfolio consisted of 510 investment securities, 488 of which were in an unrealized loss position. As noted in the table above, the total amount of the unrealized loss was $83.6 million. The U.S. government-sponsored enterprises portfolio contained unrealized losses of $1.7 million on 5 securities. The U.S. government-sponsored mortgage-backed securities portfolio contained unrealized losses of $2.3 million on 12 securities. The state and political subdivisions portfolio contained $79.6 million of unrealized losses on 471 securities. The unrealized losses on the Company's investments were a result of interest rate changes. The Company expects to recover the amortized cost basis over the term of the securities. Because the decline in market value was attributable to changes in interest rates and not credit quality, the Company has determined that an additional provision for credit losses was not necessary as of September 30, 2024.

The following table summarizes bond ratings for the Company’s held-to-maturity portfolio, based upon amortized cost, issued by state and political subdivisions and other securities as of September 30, 2024:

	State and political subdivisions		U.S. government-sponsored enterprises		U.S. government-sponsored mortgage-backed securities		Total
	(In thousands)
Aaa/AAA	$	238,872	$	43,490	$	—	$	282,362
Aa/AA	845,788		—		—		845,788
A	23,200		—		—		23,200
Not rated	1,825		—		—		1,825
Agency Backed	—		—		125,920		125,920
Total	$	1,109,685	$	43,490	$	125,920	$	1,279,095

Income earned on securities for the three months ended September 30, 2024 and 2023, is as follows:

	Three Months Ended September 30,				For the Nine Months Ended September 30,
	2024		2023		2024		2023
	(In thousands)
Taxable
Available-for-sale	$	23,550	$	27,028	$	74,439	$	82,080
Held-to-maturity	7,456		7,492		22,383		22,479
Non-taxable
Available-for-sale	4,612		4,746		13,971		14,369
Held-to-maturity	3,092		3,122		9,305		9,394
Total	$	38,710	$	42,388	$	120,098	$	128,322

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Loans Receivable

9 Months Ended

Sep. 30, 2024

Receivables [Abstract]

Loans Receivable

4. Loans Receivable

The various categories of loans receivable are summarized as follows:

	September 30, 2024		December 31, 2023
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	5,496,536	$	5,549,954
Construction/land development	2,741,419		2,293,047
Agricultural	335,965		325,156
Residential real estate loans
Residential 1-4 family	1,932,352		1,844,260
Multifamily residential	482,648		435,736
Total real estate	10,988,920		10,448,153
Consumer	1,219,197		1,153,690
Commercial and industrial	2,084,667		2,324,991
Agricultural	352,963		307,327
Other	178,232		190,567
Total loans receivable	14,823,979		14,424,728
Allowance for credit losses	(312,574)		(288,234)
Loans receivable, net	$	14,511,405	$	14,136,494

During the three months ended September 30, 2024, the Company sold $1.8 million of the guaranteed portions of certain SBA loans, which resulted in a gain of approximately $145,000. During the nine months ended September 30, 2024, the Company sold $5.1 million of the guaranteed portions of certain SBA loans, which resulted in a gain of approximately $399,000. During the three months ended September 30, 2023, the Company sold $1.0 million guaranteed portions of certain SBA loans, which resulted in a gain of approximately $97,000. During the nine months ended September 30, 2023, the Company sold $3.2 million guaranteed portions of certain SBA loans, which resulted in a gain of approximately $236,000.

Mortgage loans held for sale of approximately $92.0 million and $123.4 million at September 30, 2024 and December 31, 2023, respectively, are included in residential 1-4 family loans. Mortgage loans held for sale are carried at the lower of cost or fair value, determined using an aggregate basis. Gains and losses resulting from sales of mortgage loans are recognized when the respective loans are sold to investors. Gains and losses are determined by the difference between the selling price and the carrying amount of the loans sold, net of discounts collected or paid. The Company obtains forward commitments to sell mortgage loans to reduce market risk on mortgage loans in the process of origination and mortgage loans held for sale. The forward commitments acquired by the Company for mortgage loans in process of origination are considered mandatory forward commitments. Because these commitments are structured on a mandatory basis, the Company is required to substitute another loan or to buy back the commitment if the original loan does not fund. The Company regularly sells mortgages into the capital markets to mitigate the effects of interest rate volatility during the period from the time an interest rate lock commitment (“IRLC”) is issued until the IRLC funds creating a mortgage loan held for sale and its subsequent sale into the secondary/capital markets. Loan sales are typically executed on a mandatory basis. Under a mandatory commitment, the Company agrees to deliver a specified dollar amount with predetermined terms by a certain date. Generally, the commitment is not loan specific, and any combination of loans can be delivered into the outstanding commitment provided the terms fall within the parameters of the commitment. Upon failure to deliver, the Company is subject to fees based on market movement. These commitments and IRLCs are derivative instruments and their fair values at September 30, 2024 and December 31, 2023 were not material.

Purchased loans that have experienced more than insignificant credit deterioration since origination are PCD loans. An allowance for credit losses is determined using the same methodology as other loans. The Company develops separate PCD models for each loan segment with PCD loans not individually analyzed for credit losses. The initial allowance for credit losses determined on a collective basis is allocated to individual loans. The sum of the loan’s purchase price and allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a non-credit discount or premium which is amortized into interest income over the life of the loan. Subsequent changes to the allowance for credit losses are recorded through the provision for credit losses. The Company held approximately $79.6 million and $130.7 million in PCD loans, as of September 30, 2024 and December 31, 2023, respectively. The balance, as of September 30, 2024, results entirely from the acquisition of Happy.

A description of our accounting policies for loans and impaired loans (which includes loans individually analyzed for credit losses for which a specific reserve has been recorded, non-accrual loans, loans past due 90 days or more and restructured loans made to borrowers experiencing financial difficulty) are set forth in our 2023 Form 10-K filed with the SEC on February 26, 2024.

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Allowance for Credit Losses, Credit Quality and Other

9 Months Ended

Sep. 30, 2024

Receivables [Abstract]

Allowance for Credit Losses, Credit Quality and Other

5. Allowance for Credit Losses, Credit Quality and Other

The Company uses the discounted cash flow (“DCF”) method to estimate expected losses for all of the Company’s loan pools. These pools are as follows: construction & land development; other commercial real estate; residential real estate; commercial & industrial; and consumer & other. The loan portfolio pools were selected in order to generally align with the loan categories specified in the quarterly call reports required to be filed with the Federal Financial Institutions Examination Council. For each of these loan pools, the Company generates cash flow projections at the instrument level wherein payment expectations are adjusted for estimated prepayment speed, curtailments, time to recovery, probability of default, and loss given default. The modeling of expected prepayment speeds, curtailment rates, and time to recovery are based on historical internal data. The Company uses regression analysis of historical internal and peer data to determine suitable loss drivers to utilize when modeling lifetime probability of default and loss given default. This analysis also determines how expected probability of default and loss given default will react to forecasted levels of the loss drivers.

Management qualitatively adjusts model results for risk factors ("Q-Factors") that are not considered within our modeling processes but are, nonetheless, relevant in assessing the expected credit losses within our loan pools. These Q-Factors and other qualitative adjustments may increase or decrease management's estimate of expected credit losses by a calculated percentage or amount based upon the estimated level of risk. The various risks that may be considered in making Q-Factor and other qualitative adjustments include, among other things, the impact of (i) changes in lending policies, procedures and strategies; (ii) changes in nature and volume of the portfolio; (iii) staff experience; (iv) changes in volume and trends in classified loans, delinquencies and nonaccruals; (v) concentration risk; (vi) trends in underlying collateral values; (vii) external factors such as competition, legal and regulatory environment; (viii) changes in the quality of the loan review system; and (ix) economic conditions.

Each year management evaluates the performance of the selected models used in the CECL calculation through backtesting. Based on the results of the testing, management determines if the various models produced accurate results compared to the actual losses incurred for the current economic environment. Management then determines if changes to the input assumptions and economic factors would produce a stronger overall calculation that is more responsive to changes in economic conditions. The Company continues to use regression analysis to determine suitable loss drivers to utilize when modeling lifetime probability of default and loss given default for the changes in the economic factors for the loss driver segments. Based on this analysis, management determined that changes to several of the economic factors for the loss driver segments, along with other model improvements and updates, were necessary, and updated models were implemented beginning with the June 30, 2024 allowance for credit losses calculation. The identified loss drivers by segment are included below as of both September 30, 2024 and December 31, 2023.

September 30, 2024
Loss Driver Segment	Call Report Segment(s)	Modeled Economic Factors
1-4 Family Construction	1a1	National Unemployment (%) & Housing Price Index (%)
All Other Construction	1a2	National Unemployment (%) & Gross Domestic Product (%)
Farmland & Agriculture	1b, 3	National Unemployment (%)
Residential 1-4 Family	1c1, 1c2a, 1c2b	National Unemployment (%) & Housing Price Index (%)
Multifamily	1d	Rental Vacancy Rate (%) & Housing Price Index (%)
Non-Farm/ Non-Residential CRE	1e1, 1e2	National Unemployment (%) & Gross Domestic Product (%)
Commercial & Industrial, Non-Depository Financial Institutions, Purchase/Carry Securities, Leases, Other	4a, 9a, 9b1, 9b2, 10, Other	National Unemployment (%) & National Retail Sales (%)
Consumer Auto	6c	National Unemployment (%) & National Retail Sales (%)
Other Consumer	6b, 6d	National Unemployment (%) & National Retail Sales (%)
Other Consumer - SPF	6d	National Unemployment (%)
Obligations of States and Political Subdivisions	8	National Unemployment (%) & Gross Domestic Product (%)

December 31, 2023
Loss Driver Segment	Call Report Segment(s)	Modeled Economic Factors
1-4 Family Construction	1a1	National Unemployment (%) & Housing Price Index (%)
All Other Construction	1a2	National Unemployment (%) & Gross Domestic Product (%)
1-4 Family Revolving HELOC & Junior Liens	1c1	National Unemployment (%) & Housing Price Index – CoreLogic (%)
1-4 Family Revolving HELOC & Junior Liens	1c2b	National Unemployment (%) & Gross Domestic Product (%)
1-4 Family Senior Liens	1c2a	National Unemployment (%) & Gross Domestic Product (%)
Multifamily	1d	Rental Vacancy Rate (%) & Housing Price Index – Case-Schiller (%)
Owner Occupied CRE	1e1	National Unemployment (%) & Gross Domestic Product (%)
Non-Owner Occupied CRE	1e2,1b,8	National Unemployment (%) & Gross Domestic Product (%)
Commercial & Industrial, Agricultural, Non-Depository Financial Institutions, Purchase/Carry Securities, Other	4a, 3, 9a, 9b1, 9b2, 10, Other	National Unemployment (%) & National Retail Sales (%)
Consumer Auto	6c	National Unemployment (%) & National Retail Sales (%)
Other Consumer	6b, 6d	National Unemployment (%) & National Retail Sales (%)
Other Consumer - SPF	6d	National Unemployment (%)

For all DCF models, management has determined that four quarters represents a reasonable and supportable forecast period and reverts to a historical loss rate over four quarters on a straight-line basis. Management leverages economic projections from a reputable and independent third party to inform its loss driver forecasts over the four-quarter forecast period. Other internal and external indicators of economic forecasts are also considered by management when developing the forecast metrics.

The combination of adjustments for credit expectations (default and loss) and time expectations (prepayment, curtailment, and time to recovery) produces an expected cash flow stream at the instrument level. Instrument effective yield is calculated, net of the impacts of prepayment assumptions, and the instrument expected cash flows are then discounted at that effective yield to produce an instrument-level net present value of expected cash flows (“NPV”). An allowance for credit loss is established for the difference between the instrument’s NPV and amortized cost basis.

Construction/Land Development and Other Commercial Real Estate Loans. We originate non-farm and non-residential loans (primarily secured by commercial real estate), construction/land development loans, and agricultural loans, which are generally secured by real estate located in our market areas. Our commercial mortgage loans are generally collateralized by first liens on real estate and amortized (where defined) over a 15 to 30 year period with balloon payments due at the end of one to five years. These loans are generally underwritten by assessing cash flow (debt service coverage), primary and secondary source of repayment, the financial strength of any guarantor, the strength of the tenant (if any), the borrower’s liquidity and leverage, management experience, ownership structure, economic conditions and industry specific trends and collateral. Generally, we will loan up to 85% of the value of improved property, 65% of the value of raw land and 75% of the value of land to be acquired and developed. A first lien on the property and assignment of lease is required if the collateral is rental property, with second lien positions considered on a case-by-case basis.

Residential Real Estate Loans. We originate one to four family, residential mortgage loans generally secured by property located in our primary market areas. Residential real estate loans generally have a loan-to-value ratio of up to 90%. These loans are underwritten by giving consideration to many factors including the borrower’s ability to pay, stability of employment or source of income, debt-to-income ratio, credit history and loan-to-value ratio.

Commercial and Industrial Loans. Commercial and industrial loans are made for a variety of business purposes, including working capital, inventory, equipment and capital expansion. The terms for commercial loans are generally one to seven years. Commercial loan applications must be supported by current financial information on the borrower and, where appropriate, by adequate collateral. Commercial loans are generally underwritten by addressing cash flow (debt service coverage), primary and secondary sources of repayment, the financial strength of any guarantor, the borrower’s liquidity and leverage, management experience, ownership structure, economic conditions and industry specific trends and collateral. The loan to value ratio depends on the type of collateral. Generally, accounts receivable are financed at between 50% and 80% of accounts receivable less than 60 days past due. Inventory financing will range between 50% and 80% (with no work in process) depending on the borrower and nature of inventory. We require a first lien position for those loans.

Consumer & Other Loans. Our consumer & other loans are primarily composed of loans to finance USCG registered high-end sail and power boats. The performance of consumer & other loans will be affected by the local and regional economies as well as the rates of personal bankruptcies, job loss, divorce and other individual-specific characteristics.

Off-Balance Sheet Credit Exposures. The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit loss on off-balance sheet credit exposures is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The Company uses the DCF method to estimate expected losses for all of the Company’s off-balance sheet credit exposures through the use of the existing DCF models for the Company’s loan portfolio pools. The off-balance sheet credit exposures exhibit similar risk characteristics as loans currently in the Company’s loan portfolio.

During the three and nine months ended September 30, 2024, the Company recorded $18.2 million and $31.7 million in provision for credit losses on loans, respectively. $16.7 million of the provision for credit losses recorded during 2024 was used to establish a hurricane reserve for loans located in the Federal Emergency Management Agency ("FEMA") disaster areas impacted by Hurricane Helene, which made landfall during the third quarter of 2024. In addition, during the three months ended September 30, 2024, the Company recorded $1.0 million in provision for unfunded commitments, which completely offset the $1.0 million recovery of credit losses on unfunded commitments that was recorded during the first quarter of 2024. During the three and nine months ended September 30, 2023, the Company recorded $2.8 million and $6.3 million in provision for credit losses on loans, respectively. For the three and nine months ended September 30, 2023, the Company recovered $1.5 million in credit losses on unfunded commitments.

The following table presents the activity in the allowance for credit losses for the three and nine months ended September 30, 2024:

	Three Months Ended September 30, 2024
	Construction/ Land Development		Other Commercial Real Estate		Residential Real Estate		Commercial & Industrial		Consumer & Other		Total
	(In thousands)
Allowance for credit losses:
Beginning balance	$	58,673	$	86,842	$	51,354	$	69,635	$	29,352	$	295,856
Loans charged off	—		—		(42)		(741)		(1,218)		(2,001)
Recoveries of loans previously charged off	7		34		54		143		281		519
Net loans recovered (charged off)	7		34		12		(598)		(937)		(1,482)
Provision for credit losses	4,718		9,799		8,059		(8,434)		4,058		18,200
Balance, September 30	$	63,398	$	96,675	$	59,425	$	60,603	$	32,473	$	312,574

	Nine Months Ended September 30, 2024
	Construction/ Land Development		Other Commercial Real Estate		Residential Real Estate		Commercial & Industrial		Consumer & Other		Total
	(In thousands)
Allowance for credit losses:
Beginning balance	$	33,877	$	78,635	$	55,860	$	92,810	$	27,052	$	288,234
Loans charged off	(81)		(1,164)		(260)		(4,500)		(3,072)		(9,077)
Recoveries of loans previously charged off	96		59		149		503		910		1,717
Net loans recovered (charged off)	15		(1,105)		(111)		(3,997)		(2,162)		(7,360)
Provision for credit losses	29,506		19,145		3,676		(28,210)		7,583		31,700
Balance, September 30	$	63,398	$	96,675	$	59,425	$	60,603	$	32,473	$	312,574

During the second quarter of 2024, the Company implemented updated allowance for credit loss models as part of the annual model review and challenge process. In light of the current commercial real estate ("CRE") environment, the allowance calculation called for a higher level of reserves for the CRE portfolio and a corresponding reduction in reserves for the commercial and industrial portfolio.

The following table presents the activity in the allowance for credit losses for the three and nine months ended September 30, 2023 and the year ended December 31, 2023:

	Three Months Ended September 30, 2023
	Construction/ Land Development		Other Commercial Real Estate		Residential Real Estate		Commercial & Industrial		Consumer & Other		Total
	(In thousands)
Allowance for credit losses:
Beginning balance	$	32,275	$	85,158	$	51,732	$	90,474	$	26,044	$	285,683
Loans charged off	(150)		(1,950)		(103)		(183)		(1,063)		(3,449)
Recoveries of loans previously charged off	33		25		22		119		329		528
Net loans recovered (charged off)	(117)		(1,925)		(81)		(64)		(734)		(2,921)
Provision for credit losses	484		(4,680)		3,233		2,059		1,704		2,800
Balance, September 30	$	32,642	$	78,553	$	54,884	$	92,469	$	27,014	$	285,562

	Nine Months Ended September 30, 2023 and Year Ended December 31, 2023
	Construction/ Land Development		Other Commercial Real Estate		Residential Real Estate		Commercial & Industrial		Consumer & Other		Total
	(In thousands)
Allowance for credit losses:
Beginning balance	$	32,243	$	93,848	$	50,963	$	89,354	$	23,261	$	289,669
Loans charged off	(175)		(2,023)		(192)		(7,015)		(3,058)		(12,463)
Recoveries of loans previously charged off	103		517		161		375		900		2,056
Net loans (charged off) recovered	(72)		(1,506)		(31)		(6,640)		(2,158)		(10,407)
Provision for credit loss - loans	471		(13,789)		3,952		9,755		5,911		6,300
Balance, September 30	32,642		78,553		54,884		92,469		27,014		285,562
Loans charged off	(88)		(312)		(77)		(2,142)		(973)		(3,592)
Recoveries of loans previously charged off	10		16		168		208		212		614
Net loans (charged off) recovered	(78)		(296)		91		(1,934)		(761)		(2,978)
Provision for credit loss - loans	1,313		378		885		2,275		799		5,650
Balance, December 31	$	33,877	$	78,635	$	55,860	$	92,810	$	27,052	$	288,234

The following table presents the amortized cost basis of loans on nonaccrual status and loans past due over 90 days still accruing as of September 30, 2024 and December 31, 2023:

	September 30, 2024
	Nonaccrual		Nonaccrual with Reserve		Loans Past Due Over 90 Days Still Accruing
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	48,086	$	42,025	$	709
Construction/land development	5,403		—		657
Agricultural	737		—		—
Residential real estate loans
Residential 1-4 family	23,905		—		1,495
Multifamily residential	592		—		—
Total real estate	78,723		42,025		2,861
Consumer	7,501		2,340		28
Commercial and industrial	8,511		2,162		2,405
Agricultural & other	1,012		—		62
Total	$	95,747	$	46,527	$	5,356

	December 31, 2023
	Nonaccrual		Nonaccrual with Reserve		Loans Past Due Over 90 Days Still Accruing
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	13,178	$	—	$	2,177
Construction/land development	12,094		—		255
Agricultural	431		—		—
Residential real estate loans
Residential 1-4 family	20,351		—		84
Total real estate	46,054		—		2,516
Consumer	3,423		—		79
Commercial and industrial	9,982		2,534		1,535
Agricultural & other	512		—		—
Total	$	59,971	$	2,534	$	4,130

The Company had $95.7 million and $60.0 million in nonaccrual loans for the periods ended September 30, 2024 and December 31, 2023, respectively. In addition, the Company had $5.4 million and $4.1 million in loans past due 90 days or more and still accruing for the periods ended September 30, 2024 and December 31, 2023, respectively.

The Company had $46.5 million and $2.5 million in nonaccrual loans with a specific reserve as of September 30, 2024 and December 31, 2023, respectively. Interest income recognized on the non-accrual loans for the periods ended September 30, 2024 and September 30, 2023 was considered immaterial.

The following table presents the amortized cost basis of impaired loans (which includes loans individually analyzed for credit losses for which a specific reserve has been recorded, non-accrual loans, loans past due 90 days or more and restructured loans made to borrowers experiencing financial difficulty) by class of loans as of September 30, 2024 and December 31, 2023:

	September 30, 2024
	Commercial Real Estate		Residential Real Estate		Other
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	54,382	$	—	$	—
Construction/land development	6,060		—		—
Agricultural	737		—		—
Residential real estate loans
Residential 1-4 family	—		26,695		—
Multifamily residential	—		21,494		—
Total real estate	61,179		48,189		—
Consumer	—		—		10,527
Commercial and industrial	—		—		13,157
Agricultural & other	—		—		1,074
Total	$	61,179	$	48,189	$	24,758

	December 31, 2023
	Commercial Real Estate		Residential Real Estate		Other
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	39,813	$	—	$	—
Construction/land development	12,350		—		—
Agricultural	431		—		—
Residential real estate loans
Residential 1-4 family	—		21,386		—
Multifamily residential	—		—		—
Total real estate	52,594		21,386		—
Consumer	—		—		3,511
Commercial and industrial	—		—		16,890
Agricultural & other	—		—		512
Total	$	52,594	$	21,386	$	20,913

The Company had $134.1 million and $94.9 million in impaired loans for the periods ended September 30, 2024 and December 31, 2023, respectively.

Loans that do not share risk characteristics are evaluated on an individual basis. For these loans, where the Company has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the financial asset to be provided substantially through the operation or sale of the collateral, the allowance for credit losses is measured based on the difference between the fair value of the collateral, net of estimated costs to sell, and the amortized cost basis of the loan as of the measurement date. When repayment is expected to be from the operation of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the loan exceeds the present value of expected cash flows from the operation of the collateral. When repayment is expected to be from the sale of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the loan exceeds the fair value of the underlying collateral less

estimated costs to sell. The allowance for credit losses may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the loan, net of estimated costs to sell.

The following is an aging analysis for loans receivable as of September 30, 2024 and December 31, 2023:

	September 30, 2024
	Loans Past Due 30-59 Days		Loans Past Due 60-89 Days		Loans Past Due 90 Days or More		Total Past Due		Current Loans		Total Loans Receivable		Accruing Loans Past Due 90 Days or More
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	4,391	$	837	$	48,795	$	54,023	$	5,442,513	$	5,496,536	$	709
Construction/land development	778		221		6,060		7,059		2,734,360		2,741,419		657
Agricultural	177		198		737		1,112		334,853		335,965		—
Residential real estate loans
Residential 1-4 family	2,329		6,698		25,400		34,427		1,897,925		1,932,352		1,495
Multifamily residential	20,902		—		592		21,494		461,154		482,648		—
Total real estate	28,577		7,954		81,584		118,115		10,870,805		10,988,920		2,861
Consumer	2,928		155		7,529		10,612		1,208,585		1,219,197		28
Commercial and industrial	1,071		567		10,916		12,554		2,072,113		2,084,667		2,405
Agricultural & other	1,120		91		1,074		2,285		528,910		531,195		62
Total	$	33,696	$	8,767	$	101,103	$	143,566	$	14,680,413	$	14,823,979	$	5,356

	December 31, 2023
	Loans Past Due 30-59 Days		Loans Past Due 60-89 Days		Loans Past Due 90 Days or More		Total Past Due		Current Loans		Total Loans Receivable		Accruing Loans Past Due 90 Days or More
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	8,124	$	416	$	15,355	$	23,895	$	5,526,059	$	5,549,954	$	2,177
Construction/land development	1,430		—		12,349		13,779		2,279,268		2,293,047		255
Agricultural	474		314		431		1,219		323,937		325,156		—
Residential real estate loans
Residential 1-4 family	4,346		1,423		20,435		26,204		1,818,056		1,844,260		84
Multifamily residential	—		—		—		—		435,736		435,736		—
Total real estate	14,374		2,153		48,570		65,097		10,383,056		10,448,153		2,516
Consumer	1,022		303		3,502		4,827		1,148,863		1,153,690		79
Commercial and industrial	2,089		3,378		11,517		16,984		2,308,007		2,324,991		1,535
Agricultural and other	1,074		113		512		1,699		496,195		497,894		—
Total	$	18,559	$	5,947	$	64,101	$	88,607	$	14,336,121	$	14,424,728	$	4,130

Non-accruing loans at September 30, 2024 and December 31, 2023 were $95.7 million and $60.0 million, respectively.

Interest recognized on impaired loans during the three and nine months ended September 30, 2024 was approximately $1.3 million and $3.7 million, respectively. Interest recognized on impaired loans during the three and nine months ended September 30, 2023 was approximately $347,000 and $1.0 million, respectively. The amount of interest recognized on impaired loans on the cash basis is not materially different than the accrual basis.

Credit Quality Indicators. As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including trends related to (i) the risk rating of loans, (ii) the level of classified loans, (iii) net charge-offs, (iv) non-performing loans and (v) the general economic conditions in Arkansas, Florida, Texas, Alabama and New York.

The Company utilizes a risk rating matrix to assign a risk rating to each of its loans. Loans are rated on a scale from 1 to 8. Descriptions of the general characteristics of the 8 risk ratings are as follows:

•Risk rating 1 – Excellent. Loans in this category are to persons or entities of unquestionable financial strength, a highly liquid financial position, with collateral that is liquid and well margined. These borrowers have performed without question on past obligations, and the Bank expects their performance to continue. Internally generated cash flow covers current maturities of long-term debt by a substantial margin. Loans secured by bank certificates of deposit and savings accounts, with appropriate holds placed on the accounts, are to be rated in this category.

•Risk rating 2 – Good. These are loans to persons or entities with strong financial condition and above-average liquidity that have previously satisfactorily handled their obligations with the Bank. Collateral securing the Bank’s debt is margined in accordance with policy guidelines. Internally generated cash flow covers current maturities of long-term debt more than adequately. Unsecured loans to individuals supported by strong financial statements and on which repayment is satisfactory may be included in this classification.

•Risk rating 3 – Satisfactory. Loans to persons or entities with an average financial condition, adequate collateral margins, adequate cash flow to service long-term debt, and net worth comprised mainly of fixed assets are included in this category. These entities are minimally profitable now, with projections indicating continued profitability into the foreseeable future. Closely held corporations or businesses where a majority of the profits are withdrawn by the owners or paid in dividends are included in this rating category. Overall, these loans are basically sound.

•Risk rating 4 – Watch. Borrowers who have marginal cash flow, marginal profitability or have experienced an unprofitable year and a declining financial condition characterize these loans. The borrower has in the past satisfactorily handled debts with the Bank, but in recent months has either been late, delinquent in making payments, or made sporadic payments. While the Bank continues to be adequately secured, margins have decreased or are decreasing, despite the borrower’s continued satisfactory condition. Other characteristics of borrowers in this class include inadequate credit information, weakness of financial statement and repayment capacity, but with collateral that appears to limit exposure.

•Risk rating 5 – Other Loans Especially Mentioned (“OLEM”). A loan criticized as OLEM has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date. OLEM assets are not adversely classified and do not expose the institution to sufficient risk to warrant adverse classification.

•Risk rating 6 – Substandard. A loan classified as substandard is inadequately protected by the sound worth and paying capacity of the borrower or the collateral pledged. Loss potential, while existing in the aggregate amount of substandard loans, does not have to exist in individual assets.

•Risk rating 7 – Doubtful. A loan classified as doubtful has all the weaknesses inherent in a loan classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. These are poor quality loans in which neither the collateral, if any, nor the financial condition of the borrower presently ensure collectability in full in a reasonable period of time; in fact, there is permanent impairment in the collateral securing the loan.

•Risk rating 8 – Loss. Assets classified as loss are considered uncollectible and of such little value that the continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather, it is not practical or desirable to defer writing off this basically worthless asset, even though partial recovery may occur in the future. This classification is based upon current facts, not probabilities. Assets classified as loss should be charged-off in the period in which they became uncollectible.

The Company’s classified loans include loans in risk ratings 6, 7 and 8. Loans may be classified, but not considered collateral dependent, due to one of the following reasons: (1) The Company has established minimum dollar amount thresholds for credit loss testing. All loans over $2.0 million that are rated 5 – 8 are individually assessed for credit losses on a quarterly basis. Loans rated 5 – 8 that fall under the threshold amount are not individually tested for credit losses and therefore are not included in collateral dependent loans; (2) of the loans that are above the threshold amount and tested for credit losses after testing, some are considered to not be collateral dependent and are not included in collateral dependent loans.

Based on the most recent analysis performed, the risk category of loans by class of loans as of September 30, 2024 and December 31, 2023 is as follows:

	September 30, 2024
	Term Loans Amortized Cost Basis by Origination Year
	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	331	$	74	$	405
Risk rating 2	—		—		—		—		—		—		—		—
Risk rating 3	163,941		312,252		601,970		562,043		230,931		1,021,405		256,875		3,149,417
Risk rating 4	54,483		169,205		457,070		268,482		145,758		665,513		322,795		2,083,306
Risk rating 5	27		—		1,265		—		960		26,353		383		28,988
Risk rating 6	—		—		8,155		5,720		23,967		196,483		95		234,420
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total non-farm/non-residential	218,451		481,457		1,068,460		836,245		401,616		1,910,085		580,222		5,496,536
Construction/land development
Risk rating 1	$	—	$	—	$	—	$	10	$	—	$	—	$	—	$	10
Risk rating 2	—		136		—		—		—		165		37		338
Risk rating 3	535,815		411,289		424,306		84,734		41,633		62,671		65,049		1,625,497
Risk rating 4	131,982		189,494		466,044		79,663		9,720		24,720		205,071		1,106,694
Risk rating 5	—		623		1,431		—		—		—		—		2,054
Risk rating 6	—		73		2,559		1,909		299		933		981		6,754
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		72		—		—		—		72
Total construction/land development	667,797		601,615		894,340		166,388		51,652		88,489		271,138		2,741,419
Agricultural
Risk rating 1	$	700	$	—	$	1,462	$	—	$	—	$	—	$	—	$	2,162
Risk rating 2	278		241		—		1,853		—		—		—		2,372
Risk rating 3	35,210		34,159		32,111		15,598		21,231		44,924		31,107		214,340
Risk rating 4	13,118		10,178		27,185		19,868		10,503		26,221		5,214		112,287
Risk rating 5	—		—		—		—		—		571		—		571
Risk rating 6	—		—		—		1,621		1,084		1,335		193		4,233
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total agricultural	49,306		44,578		60,758		38,940		32,818		73,051		36,514		335,965
Total commercial real estate loans	$	935,554	$	1,127,650	$	2,023,558	$	1,041,573	$	486,086	$	2,071,625	$	887,874	$	8,573,920
Residential real estate loans
Residential 1-4 family
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	92	$	2	$	94
Risk rating 2	—		230		—		—		—		11		5		246
Risk rating 3	181,112		232,086		368,096		232,800		131,378		361,150		114,114		1,620,736
Risk rating 4	6,592		22,038		44,936		24,590		20,640		72,339		82,201		273,336
Risk rating 5	—		1,015		601		293		397		1,073		778		4,157
Risk rating 6	—		1,533		8,904		3,568		4,276		14,977		523		33,781
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		2		—		2
Total residential 1-4 family	187,704		256,902		422,537		261,251		156,691		449,644		197,623		1,932,352

	September 30, 2024
	Term Loans Amortized Cost Basis by Origination Year
	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Multifamily residential
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Risk rating 2	—		—		—		—		—		—		—		—
Risk rating 3	1,876		11,133		34,052		36,223		52,758		76,818		11,449		224,309
Risk rating 4	—		689		130,725		10,228		59,023		20,830		14,970		236,465
Risk rating 5	—		—		—		—		—		—		—		—
Risk rating 6	—		—		21,052		592		—		230		—		21,874
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total multifamily residential	1,876		11,822		185,829		47,043		111,781		97,878		26,419		482,648
Total real estate	$	1,125,134	$	1,396,374	$	2,631,924	$	1,349,867	$	754,558	$	2,619,147	$	1,111,916	$	10,988,920
Consumer
Risk rating 1	$	4,480	$	2,582	$	1,667	$	1,291	$	642	$	1,064	$	1,506	$	13,232
Risk rating 2	—		—		—		—		—		150		—		150
Risk rating 3	210,168		213,187		217,177		181,131		90,901		252,855		1,124		1,166,543
Risk rating 4	4,342		4,633		5,151		1,381		166		5,688		184		21,545
Risk rating 5	—		433		—		214		156		83		—		886
Risk rating 6	71		5,287		4,533		343		583		5,944		65		16,826
Risk rating 7	—		9		—		—		—		—		—		9
Risk rating 8	—		—		—		6		—		—		—		6
Total consumer	219,061		226,131		228,528		184,366		92,448		265,784		2,879		1,219,197
Commercial and industrial
Risk rating 1	$	3,402	$	1,207	$	793	$	651	$	219	$	21,338	$	10,740	$	38,350
Risk rating 2	48		132		1,074		185		5		19		2,142		3,605
Risk rating 3	72,780		511,791		239,265		62,304		42,767		210,038		205,363		1,344,308
Risk rating 4	57,244		34,109		29,322		29,917		8,695		66,115		308,873		534,275
Risk rating 5	—		86		485		4,526		33		—		1,305		6,435
Risk rating 6	38		12,082		68,479		13,365		34		13,526		50,159		157,683
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		1		—		—		1		9		—		11
Total commercial and industrial	133,512		559,408		339,418		110,948		51,754		311,045		578,582		2,084,667
Agricultural and other
Risk rating 1	$	643	$	378	$	222	$	16	$	105	$	—	$	782	$	2,146
Risk rating 2	537		304		28		—		—		—		2,447		3,316
Risk rating 3	45,944		51,932		39,142		27,332		24,600		32,955		106,271		328,176
Risk rating 4	30,475		4,469		8,446		6,964		388		15,305		127,762		193,809
Risk rating 5	1,915		—		312		—		61		543		5		2,836
Risk rating 6	—		4		—		46		59		683		120		912
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total agricultural and other	79,514		57,087		48,150		34,358		25,213		49,486		237,387		531,195
Total	$	1,557,221	$	2,239,000	$	3,248,020	$	1,679,539	$	923,973	$	3,245,462	$	1,930,764	$	14,823,979

	December 31, 2023
	Term Loans Amortized Cost Basis by Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential
Risk rating 1	$	—	$	—	$	—	$	—	$	232	$	116	$	55	$	403
Risk rating 2	—		—		—		—		111		—		—		111
Risk rating 3	305,742		584,860		568,413		243,177		216,746		934,111		440,414		3,293,463
Risk rating 4	83,089		557,540		242,217		224,378		149,258		590,864		95,360		1,942,706
Risk rating 5	—		—		10,000		—		14,095		42,694		758		67,547
Risk rating 6	—		8,198		9,958		23,743		24,380		179,350		95		245,724
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total non-farm/non-residential	388,831		1,150,598		830,588		491,298		404,822		1,747,135		536,682		5,549,954
Construction/land development
Risk rating 1	$	—	$	—	$	10	$	—	$	—	$	—	$	—	$	10
Risk rating 2	759		—		—		—		—		186		—		945
Risk rating 3	300,941		499,984		130,342		62,134		22,656		56,180		44,603		1,116,840
Risk rating 4	198,874		417,244		252,602		22,713		32,342		24,527		209,063		1,157,365
Risk rating 5	641		1,163		—		3,306		218		69		—		5,397
Risk rating 6	—		7,817		1,631		748		641		254		1,327		12,418
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		72		—		—		—		—		72
Total construction/land development	501,215		926,208		384,657		88,901		55,857		81,216		254,993		2,293,047
Agricultural
Risk rating 1	$	—	$	1,605	$	—	$	—	$	—	$	—	$	—	$	1,605
Risk rating 2	247		—		1,936		—		—		—		—		2,183
Risk rating 3	30,252		43,291		22,919		25,992		10,678		43,284		20,104		196,520
Risk rating 4	9,477		24,688		20,358		19,532		7,873		32,692		4,612		119,232
Risk rating 5	—		—		—		—		314		571		—		885
Risk rating 6	—		—		1,675		1,084		1,620		352		—		4,731
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total agricultural	39,976		69,584		46,888		46,608		20,485		76,899		24,716		325,156
Total commercial real estate loans	$	930,022	$	2,146,390	$	1,262,133	$	626,807	$	481,164	$	1,905,250	$	816,391	$	8,168,157
Residential real estate loans
Residential 1-4 family
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	144	$	2	$	146
Risk rating 2	259		—		—		—		—		20		1		280
Risk rating 3	246,462		366,149		241,985		145,339		93,751		324,569		122,950		1,541,205
Risk rating 4	14,992		37,444		55,406		21,240		13,313		67,084		62,356		271,835
Risk rating 5	—		243		246		479		831		1,343		40		3,182
Risk rating 6	71		5,361		2,926		4,064		3,432		10,567		1,189		27,610
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		2		—		2
Total residential 1-4 family	261,784		409,197		300,563		171,122		111,327		403,729		186,538		1,844,260

	December 31, 2023
	Term Loans Amortized Cost Basis by Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Multifamily residential
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Risk rating 2	—		—		—		—		—		—		—		—
Risk rating 3	3,314		9,827		37,755		44,407		31,436		53,068		6,537		186,344
Risk rating 4	669		77,185		69,546		64,295		8,116		18,490		7,822		246,123
Risk rating 5	—		—		—		—		—		3,006		—		3,006
Risk rating 6	—		—		—		—		263		—		—		263
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total multifamily residential	3,983		87,012		107,301		108,702		39,815		74,564		14,359		435,736
Total real estate	$	1,195,789	$	2,642,599	$	1,669,997	$	906,631	$	632,306	$	2,383,543	$	1,017,288	$	10,448,153
Consumer
Risk rating 1	$	5,195	$	2,952	$	2,002	$	839	$	355	$	1,114	$	1,580	$	14,037
Risk rating 2	—		—		—		—		126		54		—		180
Risk rating 3	240,897		245,543		211,312		108,009		108,063		191,220		1,264		1,106,308
Risk rating 4	9,597		7,534		2,479		69		109		6,073		214		26,075
Risk rating 5	22		—		22		483		872		261		—		1,660
Risk rating 6	204		1,559		830		581		881		1,349		11		5,415
Risk rating 7	15		—		—		—		—		—		—		15
Risk rating 8	—		—		—		—		—		—		—		—
Total consumer	255,930		257,588		216,645		109,981		110,406		200,071		3,069		1,153,690
Commercial and industrial
Risk rating 1	$	3,757	$	918	$	1,120	$	236	$	121	$	20,835	$	12,644	$	39,631
Risk rating 2	174		1,293		220		12		164		218		963		3,044
Risk rating 3	487,896		272,608		78,507		50,340		77,761		170,610		227,043		1,364,765
Risk rating 4	115,025		34,474		55,812		33,000		27,189		71,854		378,417		715,771
Risk rating 5	21		547		16,318		3,352		201		980		1,767		23,186
Risk rating 6	12,498		75,536		4,942		1,154		9,086		12,180		63,198		178,594
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total commercial and industrial	619,371		385,376		156,919		88,094		114,522		276,677		684,032		2,324,991
Agricultural and other
Risk rating 1	$	408	$	131	$	16	$	105	$	—	$	2	$	563	$	1,225
Risk rating 2	396		28		1		—		1,181		100		693		2,399
Risk rating 3	52,758		45,796		31,378		26,918		3,059		43,984		145,419		349,312
Risk rating 4	14,007		7,663		8,025		955		10,955		3,188		94,186		138,979
Risk rating 5	—		2,286		—		134		—		593		665		3,678
Risk rating 6	71		33		63		108		—		370		1,656		2,301
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total agricultural and other	67,640		55,937		39,483		28,220		15,195		48,237		243,182		497,894
Total	$	2,138,730	$	3,341,500	$	2,083,044	$	1,132,926	$	872,429	$	2,908,528	$	1,947,571	$	14,424,728

The following table presents gross write-offs by origination date as of September 30, 2024 and December 31, 2023.

	September 30, 2024
	Gross Loan Write-Offs by Origination Year
	2024			2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Real estate
Commercial real estate loans
Non-farm/non-residential	$	—		$	—	$	—	$	780	$	1	$	383	$	—	$	1,164
Construction/land development	—			—		—		48		33		—		—		81
Agricultural	—			—		—		—		—		—		—		—
Residential real estate loans
Residential 1-4 family	—			1		100		1		26		132		—		260
Total real estate	—			1		100		829		60		515		—		1,505
Consumer	4			86		75		40		109		485		—		799
Commercial and industrial	—			557		89		292		108		199		3,255		4,500
Agricultural & other	2,202		*	71		—		—		—		—		—		2,273
Total	$	2,206		$	715	$	264	$	1,161	$	277	$	1,199	$	3,255	$	9,077

*The 2024 write-off consists entirely of overdrafts.

	December 31, 2023
	Gross Loan Write-Offs by Origination Year
	2023			2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Real estate
Commercial real estate loans
Non-farm/non-residential	$	—		$	—	$	—	$	—	$	1,826	$	502	$	—	$	2,328
Construction/land development	—			2		168		5		—		88		—		263
Agricultural	—			—		—		—		1		6		—		7
Residential real estate loans
Residential 1-4 family	—			29		28		73		13		126		—		269
Total real estate	—			31		196		78		1,840		722		—		2,867
Consumer	—			51		44		98		63		263		25		544
Commercial and industrial	—			407		1,110		894		911		5,369		466		9,157
Agricultural & other	3,252		**	1		1		2		64		3		164		3,487
Total	$	3,252		$	490	$	1,351	$	1,072	$	2,878	$	6,357	$	655	$	16,055

**The 2023 write-offs consist entirely of overdrafts.

The Company considers the performance of the loan portfolio and its impact on the allowance for credit losses. The Company also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following tables present the amortized cost of performing and nonperforming loans as of September 30, 2024 and December 31, 2023.

	September 30, 2024
	Term Loans Amortized Cost Basis by Origination Year
	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential
Performing	$	218,451	$	481,457	$	1,068,305	$	835,292	$	387,389	$	1,871,118	$	580,142	$	5,442,154
Non-performing	—		—		155		953		14,227		38,967		80		54,382
Total non-farm/non-residential	218,451		481,457		1,068,460		836,245		401,616		1,910,085		580,222		5,496,536
Construction/land development
Performing	$	667,797	$	601,542	$	891,810	$	164,990	$	51,470	$	87,594	$	270,156	$	2,735,359
Non-performing	—		73		2,530		1,398		182		895		982		6,060
Total construction/ land development	667,797		601,615		894,340		166,388		51,652		88,489		271,138		2,741,419
Agricultural
Performing	$	49,306	$	44,578	$	60,758	$	38,875	$	32,818	$	72,572	$	36,321	$	335,228
Non-performing	—		—		—		65		—		479		193		737
Total agricultural	49,306		44,578		60,758		38,940		32,818		73,051		36,514		335,965
Total commercial real estate loans	$	935,554	$	1,127,650	$	2,023,558	$	1,041,573	$	486,086	$	2,071,625	$	887,874	$	8,573,920
Residential real estate loans
Residential 1-4 family
Performing	$	187,704	$	255,185	$	416,753	$	257,574	$	153,384	$	437,827	$	197,230	$	1,905,657
Non-performing	—		1,717		5,784		3,677		3,307		11,817		393		26,695
Total residential 1-4 family	187,704		256,902		422,537		261,251		156,691		449,644		197,623		1,932,352
Multifamily residential
Performing	$	1,876	$	11,822	$	164,927	$	46,451	$	111,781	$	97,878	$	26,419	$	461,154
Non-performing	—		—		20,902		592		—		—		—		21,494
Total multifamily residential	1,876		11,822		185,829		47,043		111,781		97,878		26,419		482,648
Total real estate	$	1,125,134	$	1,396,374	$	2,631,924	$	1,349,867	$	754,558	$	2,619,147	$	1,111,916	$	10,988,920
Consumer
Performing	$	218,988	$	225,480	$	225,577	$	184,063	$	91,893	$	259,861	$	2,808	$	1,208,670
Non-performing	73		651		2,951		303		555		5,923		71		10,527
Total consumer	219,061		226,131		228,528		184,366		92,448		265,784		2,879		1,219,197
Commercial and industrial
Performing	$	133,512	$	556,469	$	336,274	$	109,586	$	51,740	$	306,000	$	577,929	$	2,071,510
Non-performing	—		2,939		3,144		1,362		14		5,045		653		13,157
Total commercial and industrial	133,512		559,408		339,418		110,948		51,754		311,045		578,582		2,084,667
Agricultural and other
Performing	$	79,514	$	57,083	$	48,150	$	34,312	$	25,209	$	48,579	$	237,274	$	530,121
Non-performing	—		4		—		46		4		907		113		1,074
Total agricultural and other	79,514		57,087		48,150		34,358		25,213		49,486		237,387		531,195
Total	$	1,557,221	$	2,239,000	$	3,248,020	$	1,679,539	$	923,973	$	3,245,462	$	1,930,764	$	14,823,979

	December 31, 2023
	Term Loans Amortized Cost Basis by Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential
Performing	$	388,831	$	1,150,598	$	821,373	$	490,153	$	404,061	$	1,718,776	$	536,349	$	5,510,141
Non-performing	—		—		9,215		1,145		761		28,359		333		39,813
Total non-farm/non-residential	388,831		1,150,598		830,588		491,298		404,822		1,747,135		536,682		5,549,954
Construction/land development
Performing	$	501,215	$	918,390	$	382,954	$	88,204	$	55,239	$	81,028	$	253,667	$	2,280,697
Non-performing	—		7,818		1,703		697		618		188		1,326		12,350
Total construction/land development	501,215		926,208		384,657		88,901		55,857		81,216		254,993		2,293,047
Agricultural
Performing	$	39,976	$	69,584	$	46,809	$	46,608	$	20,485	$	76,547	$	24,716	$	324,725
Non-performing	—		—		79		—		—		352		—		431
Total agricultural	39,976		69,584		46,888		46,608		20,485		76,899		24,716		325,156
Total commercial real estate loans	$	930,022	$	2,146,390	$	1,262,133	$	626,807	$	481,164	$	1,905,250	$	816,391	$	8,168,157
Residential real estate loans
Residential 1-4 family
Performing	$	261,784	$	405,239	$	298,207	$	167,475	$	108,091	$	396,130	$	185,948	$	1,822,874
Non-performing	—		3,958		2,356		3,647		3,236		7,599		590		21,386
Total residential 1-4 family	261,784		409,197		300,563		171,122		111,327		403,729		186,538		1,844,260
Multifamily residential
Performing	$	3,983	$	87,012	$	107,301	$	108,702	$	39,815	$	74,564	$	14,359	$	435,736
Non-performing	—		—		—		—		—		—		—		—
Total multifamily residential	3,983		87,012		107,301		108,702		39,815		74,564		14,359		435,736
Total real estate	$	1,195,789	$	2,642,599	$	1,669,997	$	906,631	$	632,306	$	2,383,543	$	1,017,288	$	10,448,153
Consumer
Performing	$	255,771	$	256,826	$	215,831	$	109,442	$	110,267	$	198,982	$	3,060	$	1,150,179
Non-performing	159		762		814		539		139		1,089		9		3,511
Total consumer	255,930		257,588		216,645		109,981		110,406		200,071		3,069		1,153,690
Commercial and industrial
Performing	$	616,809	$	382,190	$	156,056	$	87,531	$	111,529	$	273,434	$	680,552	$	2,308,101
Non-performing	2,562		3,186		863		563		2,993		3,243		3,480		16,890
Total commercial and industrial	619,371		385,376		156,919		88,094		114,522		276,677		684,032		2,324,991
Agricultural and other
Performing	$	67,569	$	55,904	$	39,473	$	28,220	$	15,195	$	48,203	$	242,818	$	497,382
Non-performing	71		33		10		—		—		34		364		512
Total agricultural and other	67,640		55,937		39,483		28,220		15,195		48,237		243,182		497,894
Total	$	2,138,730	$	3,341,500	$	2,083,044	$	1,132,926	$	872,429	$	2,908,528	$	1,947,571	$	14,424,728

The Company had approximately $45.3 million or 180 total revolving loans convert to term loans for the nine months ended September 30, 2024 compared to $32.1 million or 182 total revolving loans convert to term loans for the nine months ended September 30, 2023. These loans were considered immaterial for vintage disclosure inclusion.

The following table presents the amortized cost basis of modified loans to borrowers experiencing financial difficulty by class and modification type at September 30, 2024 and December 31, 2023. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below.

	September 30, 2024
									Combination of Modifications
	Term Extension		Interest Rate Reduction		Principal Reduction		Interest Only		Interest Rate Reduction and Term Extension		Principal Reduction and Interest Rate Reduction		Term Extension and Interest Only		Term Extension and Principal Reduction		Post- Modification Outstanding Balance		Percentage of Total Class of Loans Receivable
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	389	$	—	$	—	$	1,307	$	342	$	—	$	15,874	$	—	$	17,912	0.33	%
Construction/land development	—		—		—		78		—		—		—		—		78		—
Residential real estate loans
Residential 1-4 family	1,061		951		103		23		606		—		—		117		2,861		0.15
Total real estate	1,450		951		103		1,408		948		—		15,874		117		20,851		0.19
Consumer	6		—		—		9		—		3		—		—		18		—
Commercial and industrial	2,308		—		—		992		74		—		—		—		3,374		0.16
Total	$	3,764	$	951	$	103	$	2,409	$	1,022	$	3	$	15,874	$	117	$	24,243	0.16	%

	December 31, 2023
									Combination of Modifications
	Term Extension		Interest Rate Reduction		Principal Reduction		Interest Only		Interest Rate Reduction and Term Extension		Principal Reduction and Interest Rate Reduction		Term Extension and Interest Only		Term Extension and Principal Reduction		Post- Modification Outstanding Balance		Percentage of Total Class of Loans Receivable
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	398	$	—	$	—	$	1,537	$	348	$	—	$	16,023	$	—	$	18,306	0.33	%
Construction/land development	—		—		—		149		—		—		—		—		149		0.01
Residential real estate loans
Residential 1-4 family	560		598		106		59		516		—		—		116		1,955		0.11
Total real estate	958		598		106		1,745		864		—		16,023		116		20,410		0.20
Consumer	14		—		1		10		—		5		—		—		30		—
Commercial and industrial	2,253		38		42		1,763		74		—		—		—		4,170		0.18
Total	$	3,225	$	636	$	149	$	3,518	$	938	$	5	$	16,023	$	116	$	24,610	0.17	%

During the nine months ended September 30, 2024, the Company restructured approximately $1.2 million in loans to eight borrowers. The ending balance of these loans as of September 30, 2024, was $1.1 million. During the nine months ended September 30, 2023, the Company restructured approximately $19.4 million in loans to 18 borrowers. The ending balance of these loans as of September 30, 2023, was $20.8 million. The Company considered the financial effect of these loan modifications to borrowers experiencing financial difficulty during the nine months ended September 30, 2024 and September 30, 2023 as well as the unadvanced balances to these borrowers immaterial for tabular disclosure inclusion.

The following table presents the amortized cost basis of loans that had a payment default during the nine months ended September 30, 2024 and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty.

	September 30, 2024
	Term Extension		Interest Rate Reduction		Combination Interest Rate Reduction and Term Extension
	(Dollars in thousands)
Real estate
Commercial real estate loans
Non-farm/non-residential	$	—	$	—	$	—
Residential real estate loans
Residential 1-4 family	385		511		238
Total real estate	385		511		238
Consumer	6		—		—
Commercial and industrial	—		—		—
Total	$	391	$	511	$	238

The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The Company has modified 11 loans over the past 12 months to borrowers experiencing financial difficulty. The pre-modification balance of the loans was $1.4 million, and the ending balance as of September 30, 2024 was $1.3 million. The $1.3 million balance consists of $1.1 million of non-accrual loans and $193,000 of current loans, of which $92,000 were 60-89 days past due. The remaining balance of the loans was current as of September 30, 2024.

Upon the Company's determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses on loans is adjusted by the same amount. The defaults impact the loss rate by applicable loan pool for the quarterly CECL calculation. For individually analyzed loans which are not considered to be collateral dependent, an allowance is recorded based on the loss rate for the respective pool within the collective evaluation.

The following is a presentation of total foreclosed assets as of September 30, 2024 and December 31, 2023:

	September 30, 2024		December 31, 2023
	(In thousands)
Commercial real estate loans
Non-farm/non-residential	$	29,824	$	29,894
Construction/land development	12,919		47
Residential real estate loans
Residential 1-4 family	297		545
Total foreclosed assets held for sale	$	43,040	$	30,486

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Goodwill and Core Deposits and Other Intangibles

9 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Core Deposits and Other Intangibles

6. Goodwill and Core Deposits and Other Intangibles

Changes in the carrying amount and accumulated amortization of the Company’s goodwill and core deposits and other intangibles at September 30, 2024 and December 31, 2023, were as follows:

	September 30, 2024		December 31, 2023
	(In thousands)
Goodwill
Balance, beginning of period	$	1,398,253	$	1,398,253
Balance, end of period	$	1,398,253	$	1,398,253

	September 30, 2024		December 31, 2023
	(In thousands)
Core Deposit Intangibles
Balance, beginning of period	$	48,770	$	58,455
Amortization expense	(6,375)		(7,432)
Balance, September 30	$	42,395	51,023
Amortization expense			(2,253)
Balance, end of year			$	48,770

The carrying basis and accumulated amortization of core deposit intangibles at September 30, 2024 and December 31, 2023 were:

	September 30, 2024		December 31, 2023
	(In thousands)
Gross carrying basis	$	128,888	$	128,888
Accumulated amortization	(86,493)		(80,118)
Net carrying amount	$	42,395	$	48,770

Core deposit intangible amortization expense was approximately $2.1 million and $2.5 million for the three months ended September 30, 2024 and 2023, respectively. Core deposit intangible amortization expense was approximately $6.4 million and $7.4 million for the nine months ended September 30, 2024 and 2023, respectively. The Company’s estimated amortization expense of core deposits intangibles for each of the years 2024 through 2028 is approximately: 2024 – $8.4 million; 2025 – $8.0 million; 2026 – $7.8 million; 2027– $6.6 million; 2028 – $4.2 million.

The carrying amount of the Company’s goodwill was $1.40 billion at both September 30, 2024 and December 31, 2023. Goodwill is tested annually for impairment during the fourth quarter or more often if events and circumstances indicate there may be an impairment. During the 2023 review, no impairment was found. If the implied fair value of goodwill is lower than its carrying amount, goodwill impairment is indicated, and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the consolidated financial statements.

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Other Assets

9 Months Ended

Sep. 30, 2024

Other Assets [Abstract]

Other Assets

7. Other Assets

Other assets consist primarily of equity securities without a readily determinable fair value and other miscellaneous assets. As of September 30, 2024 and December 31, 2023, other assets were $352.6 million and $323.6 million, respectively.

The Company has equity securities without readily determinable fair values such as stock holdings in the Federal Home Loan Bank (“FHLB”) and the Federal Reserve Bank (“Federal Reserve”) which are outside the scope of ASC Topic 321, Investments – Equity Securities (“ASC Topic 321”). These equity securities without a readily determinable fair value were $133.3 million and $133.4 million at September 30, 2024 and December 31, 2023, and are accounted for at cost.

The Company has equity securities such as stock holdings in First National Bankers’ Bank and other miscellaneous holdings which are accounted for under ASC Topic 321. These equity securities without a readily determinable fair value were $93.3 million and $90.3 million at September 30, 2024 and December 31, 2023, respectively. There were no transactions during the period that would indicate a material change in fair value.

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Deposits

9 Months Ended

Sep. 30, 2024

Deposits [Abstract]

Deposits

8. Deposits

The aggregate amount of time deposits with a minimum denomination of $250,000 was $923.9 million and $836.7 million at September 30, 2024 and December 31, 2023, respectively. The aggregate amount of time deposits with a minimum denomination of $100,000 was $1.20 billion and $1.09 billion at September 30, 2024 and December 31, 2023, respectively. Interest expense applicable to certificates in excess of $100,000 totaled $12.7 million and $7.5 million for the three months ended September 30, 2024 and 2023, respectively. Interest expense applicable to certificates in excess of $100,000 totaled $36.5 million and $15.7 million for the nine months ended September 30, 2024 and 2023, respectively. As of September 30, 2024 and December 31, 2023, brokered deposits were $421.3 million and $401.0 million, respectively.

Deposits totaling approximately $2.84 billion and $3.05 billion at September 30, 2024 and December 31, 2023, respectively, were public funds obtained primarily from state and political subdivisions in the United States.

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Securities Sold Under Agreements to Repurchase

9 Months Ended

Sep. 30, 2024

Securities Sold under Agreements to Repurchase [Abstract]

Securities Sold Under Agreements to Repurchase

9. Securities Sold Under Agreements to Repurchase

At September 30, 2024 and December 31, 2023, securities sold under agreements to repurchase totaled $179.4 million and $142.1 million, respectively. For the three-month periods ended September 30, 2024 and 2023, securities sold under agreements to repurchase daily weighted-average totaled $157.2 million and $154.7 million, respectively. For the nine-month periods ended September 30, 2024 and 2023, securities sold under agreements to repurchase daily weighted-average totaled $163.0 million and $144.6 million, respectively.

The remaining contractual maturity of securities sold under agreements to repurchase in the consolidated balance sheets as of September 30, 2024 and December 31, 2023 is presented in the following table:

	September 30, 2024				December 31, 2023
	Overnight and Continuous		Total		Overnight and Continuous		Total
	(In thousands)
Securities sold under agreements to repurchase:
U.S. government-sponsored enterprises	$	9,964	$	9,964	$	—	$	—
Mortgage-backed securities	51,314		51,314		—		—
State and political subdivisions	21,808		21,808		—		—
Other securities	96,330		96,330		142,085		142,085
Total borrowings	$	179,416	$	179,416	$	142,085	$	142,085

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FHLB and Other Borrowed Funds

9 Months Ended

Sep. 30, 2024

Advance from Federal Home Loan Bank [Abstract]

FHLB and Other Borrowed Funds

10. FHLB and Other Borrowed Funds

The Company’s FHLB borrowed funds, which are secured by our loan portfolio, were $600.0 million at both September 30, 2024 and December 31, 2023. At September 30, 2024 and December 31, 2023, the entire $600.0 million of the outstanding balances were classified as long-term advances. The FHLB advances mature from 2025 to 2037 with fixed interest rates ranging from 3.37% to 4.84%. Expected maturities could differ from contractual maturities because FHLB may have the right to call, or the Company may have the right to prepay certain obligations.

Other borrowed funds were $700.8 million as of September 30, 2024 and were classified as short-term advances. The Company had $701.3 million in other borrowed funds as of December 31, 2023. As of both September 30, 2024 and December 31, 2023, the Company had drawn $700.0 million from the Bank Term Funding Program in the ordinary course of business, and these advances mature on January 16, 2025.

Additionally, the Company had $1.24 billion and $1.33 billion at September 30, 2024 and December 31, 2023, respectively, in letters of credit under a FHLB blanket borrowing line of credit, which are used to collateralize public deposits.

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Subordinated Debentures

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Subordinated Debentures

11. Subordinated Debentures

Subordinated debentures at September 30, 2024 and December 31, 2023 consisted of the following components:

	As of September 30, 2024		As of December 31, 2023
	(In thousands)
Subordinated debt securities
Subordinated notes, net of issuance costs, issued in 2020, due 2030, fixed rate of 5.50% during the first five years and at a floating rate of 534.5 basis points above the then three-month SOFR rate, reset quarterly, thereafter, callable in 2025 without penalty	$	141,096	$	142,084
Subordinated notes, net of issuance costs, issued in 2022, due 2032, fixed rate of 3.125% during the first five years and at a floating rate of 182 basis points above the then three-month SOFR rate, reset quarterly, thereafter, callable in 2027 without penalty	298,298		297,750
Total	$	439,394	$	439,834

Subordinated Debt Securities. On April 1, 2022, the Company acquired $140.0 million in aggregate principal amount of 5.500% Fixed-to-Floating Rate Subordinated Notes due 2030 (the “2030 Notes”) from Happy, and the Company recorded approximately $144.4 million which included fair value adjustments. The 2030 Notes are unsecured, subordinated debt obligations of the Company and will mature on July 31, 2030. From and including the date of issuance to, but excluding July 31, 2025 or the date of earlier redemption, the 2030 Notes will bear interest at an initial rate of 5.50% per annum, payable in arrears on January 31 and July 31 of each year. From and including July 31, 2025 to, but excluding, the maturity date or earlier redemption, the 2030 Notes will bear interest at a floating rate equal to the Benchmark rate (which is expected to be 3-month Secured Overnight Funding Rate (SOFR)), each as defined in and subject to the provisions of the applicable supplemental indenture for the 2030 Notes, plus 5.345%, payable quarterly in arrears on January 31, April 30, July 31, and October 31 of each year, commencing on October 31, 2025.

The Company may, beginning with the interest payment date of July 31, 2025, and on any interest payment date thereafter, redeem the 2030 Notes, in whole or in part, subject to prior approval of the Federal Reserve if then required, at a redemption price equal to 100% of the principal amount of the 2030 Notes to be redeemed plus accrued and unpaid interest to but excluding the date of redemption. The Company may also redeem the 2030 Notes at any time, including prior to July 31, 2025, at the Company’s option, in whole but not in part, subject to prior approval of the Federal Reserve if then required, if certain events occur that could impact the Company’s ability to deduct interest payable on the 2030 Notes for U.S. federal income tax purposes or preclude the 2030 Notes from being recognized as Tier 2 capital for regulatory capital purposes, or if the Company is required to register as an investment company under the Investment Company Act of 1940, as amended. In each case, the redemption would be at a redemption price equal to 100% of the principal amount of the 2030 Notes plus any accrued and unpaid interest to, but excluding, the redemption date.

On January 18, 2022, the Company completed an underwritten public offering of $300.0 million in aggregate principal amount of its 3.125% Fixed-to-Floating Rate Subordinated Notes due 2032 (the “2032 Notes”) for net proceeds, after underwriting discounts and issuance costs of approximately $296.4 million. The 2032 Notes are unsecured, subordinated debt obligations of the Company and will mature on January 30, 2032. From and including the date of issuance to, but excluding January 30, 2027 or the date of earlier redemption, the 2032 Notes will bear interest at an initial rate of 3.125% per annum, payable in arrears on January 30 and July 30 of each year. From and including January 30, 2027 to, but excluding, the maturity date or earlier redemption, the 2032 Notes will bear interest at a floating rate equal to the Benchmark rate (which is expected to be Three-Month Term SOFR), each as defined in and subject to the provisions of the applicable supplemental indenture for the 2032 Notes, plus 182 basis points, payable quarterly in arrears on January 30, April 30, July 30, and October 30 of each year, commencing on April 30, 2027.

The Company may, beginning with the interest payment date of January 30, 2027, and on any interest payment date thereafter, redeem the 2032 Notes, in whole or in part, subject to prior approval of the Federal Reserve if then required, at a redemption price equal to 100% of the principal amount of the 2032 Notes to be redeemed plus accrued and unpaid interest to but excluding the date of redemption. The Company may also redeem the 2032 Notes at any time, including prior to January 30, 2027, at the Company’s option, in whole but not in part, subject to prior approval of the Federal Reserve if then required, if certain events occur that could impact the Company’s ability to deduct interest payable on the 2032 Notes for U.S. federal income tax purposes or preclude the 2032 Notes from being recognized as Tier 2 capital for regulatory capital purposes, or if the Company is required to register as an investment company under the Investment Company Act of 1940, as amended. In each case, the redemption would be at a redemption price equal to 100% of the principal amount of the 2032 Notes plus any accrued and unpaid interest to, but excluding, the redemption date.

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Income Taxes

9 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

12. Income Taxes

The following is a summary of the components of the provision for income taxes for the three and nine months ended September 30, 2024 and 2023:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2024		2023		2024		2023
	(In thousands)
Current:
Federal	$	26,586	$	23,861	$	75,213	$	76,059
State	5,412		4,858		15,312		15,484
Total current	31,998		28,719		90,525		91,543
Deferred:
Federal	(2,453)		1,758		570		715
State	(499)		358		116		146
Total deferred	(2,952)		2,116		686		861
Income tax expense	$	29,046	$	30,835	$	91,211	$	92,404

The reconciliation between the statutory federal income tax rate and effective income tax rate is as follows for the three and nine months ended September 30, 2024 and 2023:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Statutory federal income tax rate	21.00	%	21.00	%	21.00	%	21.00	%
Effect of non-taxable interest income	(1.28)		(0.64)		(0.98)		(0.71)
Stock compensation	0.58		0.29		0.57		0.29
State income taxes, net of federal benefit	2.45		2.73		2.57		2.64
Executive officer compensation & other	(0.25)		0.47		0.06		(0.07)
Effective income tax rate	22.50	%	23.85	%	23.22	%	23.15	%

The types of temporary differences between the tax basis of assets and liabilities and their financial reporting amounts that give rise to deferred income tax assets and liabilities, and their approximate tax effects, are as follows:

	September 30, 2024		December 31, 2023
	(In thousands)
Deferred tax assets:
Allowance for credit losses	$	86,628	$	81,251
Deferred compensation	6,448		7,619
Stock compensation	5,344		6,803
Non-accrual interest income	1,786		1,463
Real estate owned	70		79
Unrealized loss on investment securities, available-for-sale	62,211		81,493
Loan discounts	3,689		5,119
Investments	23,580		25,789
Other	19,084		14,691
Gross deferred tax assets	208,840		224,307
Deferred tax liabilities:
Accelerated depreciation on premises and equipment	—		1,477
Tax basis on acquisitions	6,691		4,061
Core deposit intangibles	9,610		11,021
FHLB dividends	2,835		2,351
Other	13,075		8,233
Gross deferred tax liabilities	32,211		27,143
Net deferred tax assets	$	176,629	$	197,164

The Company files income tax returns in the U.S. federal jurisdiction. The Company's income tax returns are open and subject to examinations from the 2020 tax year and forward. The Company's various state income tax returns are generally open from the 2020 and later tax return years based on individual state statute of limitations.

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Common Stock, Compensation Plans and Other

9 Months Ended

Sep. 30, 2024

Equity [Abstract]

Common Stock, Compensation Plans and Other

13. Common Stock, Compensation Plans and Other

Common Stock

The Company’s Restated Articles of Incorporation, as amended, authorize the issuance of up to 300,000,000 shares of common stock, par value $0.01 per share.

The Company also has the authority to issue up to 5,500,000 shares of preferred stock, par value $0.01 per share under the Company’s Restated Articles of Incorporation, as amended.

Stock Repurchases

During the nine months ended September 30, 2024, the Company repurchased a total of 3,426,028 shares with a weighted-average stock price of $24.36 per share. Shares repurchased under the program as of September 30, 2024 since its inception total 26,411,743 shares. The remaining balance available for repurchase is 13,340,257 shares at September 30, 2024.

Stock Compensation Plans

The Company has a stock option and performance incentive plan known as the Home BancShares, Inc. 2022 Equity Incentive Plan (the “Plan”). The purpose of the Plan is to attract and retain highly qualified officers, directors, key employees, and other persons, and to motivate those persons to improve the Company’s business results. As of September 30, 2024, the maximum total number of shares of the Company’s common stock available for issuance under the Plan was 14,788,000 shares. At September 30, 2024, the Company had 2,072,278 shares of common stock available for future grants and 3,863,313 shares of common stock reserved for issuance pursuant to the Plan.

The intrinsic value of the stock options outstanding was $8.4 million, which includes the intrinsic value of vested stock options of $6.2 million at September 30, 2024. The intrinsic value of stock options exercised during the nine months ended September 30, 2024 was approximately $6.8 million. Total unrecognized compensation cost related to non-vested stock option awards, which are expected to be recognized over the vesting periods, was approximately $1.7 million as of September 30, 2024.

The table below summarizes the stock option transactions under the Plan at September 30, 2024 and December 31, 2023 and changes during the nine-month period and year then ended:

	For the Nine Months Ended September 30, 2024			For the Year Ended December 31, 2023
	Shares (000)	Weighted- Average Exercisable Price		Shares (000)	Weighted- Average Exercisable Price
Outstanding, beginning of year	2,776	$	20.95	2,971	$	20.45
Granted	—	—		25	22.63
Forfeited/Expired	(33)	21.87		(10)	23.38
Exercised	(952)	18.13		(210)	14.01
Outstanding, end of period	1,791	22.43		2,776	20.95
Exercisable, end of period	1,253	22.11		1,940	20.05

Stock-based compensation expense for stock-based compensation awards granted is based on the grant-date fair value. For stock option awards, the fair value is estimated at the date of grant using the Black-Scholes option-pricing model. This model requires the input of highly subjective assumptions, changes to which can materially affect the fair value estimate. Additionally, there may be other factors that would otherwise have a significant effect on the value of employee stock options granted but are not considered by the model. Accordingly, while management believes that the Black-Scholes option-pricing model provides a reasonable estimate of fair value, the model does not necessarily provide the best single measure of fair value for the Company's employee stock options. There were no options granted during the nine months ended September 30, 2024. The fair value of each option granted is estimated on the date of grant using the Black-Scholes option-pricing model based on the weighted-average assumptions for expected dividend yield, expected stock price volatility, risk-free interest rate, and expected life of options granted.

The assumptions used in determining the fair value of the 2024 and 2023 stock option grants were as follows:

	For the Nine Months Ended September 30, 2024	For the Year Ended December 31, 2023
Expected dividend yield	Not Applicable	2.98	%
Expected stock price volatility	Not Applicable	27.97	%
Risk-free interest rate	Not Applicable	3.37	%
Expected life of options	Not Applicable	6.5 years

The following is a summary of currently outstanding and exercisable options at September 30, 2024:

Options Outstanding					Options Exercisable
Exercise Prices	Options Outstanding Shares (000)	Weighted- Average Remaining Contractual Life (in years)	Weighted- Average Exercise Price		Options Exercisable Shares (000)	Weighted- Average Exercise Price
$16.00 to $17.99	40	0.54	$	17.12	40	$	17.12
$18.00 to $19.99	188	1.32	18.53		188	18.53
$20.00 to $21.99	220	3.73	20.88		186	20.92
$22.00 to $23.99	1,253	3.90	23.22		767	23.19
$24.00 to $25.99	90	3.65	25.59		72	25.93
	1,791				1,253

The table below summarized the activity for the Company’s restricted stock issued and outstanding at September 30, 2024 and December 31, 2023 and changes during the period and year then ended:

	As of September 30, 2024		As of December 31, 2023
	(In thousands)
Beginning of year	1,429		1,381
Issued	516		261
Vested	(461)		(152)
Forfeited	(59)		(61)
End of period	1,425		1,429
Amount of expense for the nine months and twelve months ended, respectively	$	5,963	$	8,016

Total unrecognized compensation cost related to non-vested restricted stock awards, which are expected to be recognized over the vesting periods, was approximately $16.5 million as of September 30, 2024.

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Non-Interest Expense

9 Months Ended

Sep. 30, 2024

Noninterest Expense [Abstract]

Non-Interest Expense

14. Non-Interest Expense

The table below shows the components of non-interest expense for the three and nine months ended September 30, 2024 and 2023:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(In thousands)
Salaries and employee benefits	$	58,861	$	64,512	$	180,198	$	193,536
Occupancy and equipment	14,546		15,463		43,505		45,338
Data processing expense	9,088		9,103		27,170		27,222
Other operating expenses:
Advertising	1,810		2,295		5,156		6,624
Amortization of intangibles	2,095		2,477		6,375		7,432
Electronic banking expense	3,569		3,709		10,137		10,714
Directors’ fees	362		417		1,283		1,415
Due from bank service charges	302		282		860		841
FDIC and state assessment	3,360		2,794		12,172		9,514
Insurance	926		878		2,734		2,694
Legal and accounting	1,902		1,514		6,600		4,038
Other professional fees	2,062		2,117		6,406		7,175
Operating supplies	673		860		1,969		2,361
Postage	522		491		1,542		1,578
Telephone	455		544		1,369		1,645
Other expense	9,512		7,306		27,250		23,561
Total other operating expenses	27,550		25,684		83,853		79,592
Total non-interest expense	$	110,045	$	114,762	$	334,726	$	345,688

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Leases

9 Months Ended

Sep. 30, 2024

Leases [Abstract]

Leases

15. Leases

The Company leases land and office facilities under long-term, non-cancelable operating lease agreements. The leases expire at various dates through 2044 and do not include renewal options based on economic factors that would have implied that continuation of the lease was reasonably certain. Certain leases provide for increases in future minimum annual rental payments as defined in the lease agreements. The leases generally include real estate taxes and common area maintenance charges in the rental payments. Short-term leases are leases having a term of twelve months or less. The Company does not separate nonlease components from the associated lease component of our operating leases. As a result, the Company accounts for these components as a single component since (i) the timing and pattern of transfer of the nonlease components and the associated lease component are the same and (ii) the lease component, if accounted for separately, would be classified as an operating lease. The Company recognizes short term leases on a straight-line basis and does not record a related right-of-use ("ROU") asset and liability for such leases. In addition, equipment leases were determined to be immaterial and a related ROU asset and liability for such leases is not recorded.

As of September 30, 2024, the balances of the ROU asset and lease liability were $43.0 million and $45.8 million, respectively. As of December 31, 2023, the balances of the ROU asset and lease liability were $42.2 million and $45.0 million, respectively. The ROU asset is included in bank premises and equipment, net, and the lease liability is included in accrued interest payable and other liabilities.

The minimum rental commitments under these noncancelable operating leases are as follows (in thousands) as of September 30, 2024 and December 31, 2023:

	September 30, 2024		December 31, 2023
2024	$	2,678	$	9,373
2025	10,201		8,549
2026	9,468		8,111
2027	8,144		7,223
2028	6,368		5,496
Thereafter	22,053		19,827
Total future minimum lease payments	$	58,912	$	58,579
Discount effect of cash flows	(13,064)		(13,551)
Present value of net future minimum lease payments	$	45,848	$	45,028

Additional information (dollar amounts in thousands):

	Three Months Ended						Nine Months Ended
Lease expense:	September 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Operating lease expense	$	2,266		$	2,059		$	6,901		$	5,937
Short-term lease expense	—			—			—			—
Variable lease expense	302			289			895			810
Total lease expense	$	2,568		$	2,348		$	7,796		$	6,747
Other information:
Cash paid for amounts included in the measurement of lease liabilities	$	1,972		$	2,136		$	6,802		$	6,146
Weighted-average remaining lease term (in years)	7.64			8.33			7.75			8.62
Weighted-average discount rate	3.52		%	3.43		%	3.46		%	3.44		%

The Company currently leases two properties from two related parties. Total rent expense from the leases was $35,000, or 1.37% of total lease expense and $97,000, or 1.25% of total lease expense, for the three and nine months ended September 30, 2024, respectively.

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Significant Estimates and Concentrations of Credit Risks

9 Months Ended

Sep. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Significant Estimates and Concentrations of Credit Risks

16. Significant Estimates and Concentrations of Credit Risks

Accounting principles generally accepted in the United States of America require disclosure of certain significant estimates and current vulnerabilities due to certain concentrations. Estimates related to the allowance for credit losses and certain concentrations of credit risk are reflected in Note 5, while deposit concentrations are reflected in Note 8.

The Company’s primary market areas are in Arkansas, Florida, Texas, South Alabama and New York. The Company primarily grants loans to customers located within these markets unless the borrower has an established relationship with the Company.

The diversity of the Company’s economic base tends to provide a stable lending environment. Although the Company has a loan portfolio that is diversified in both industry and geographic area, a substantial portion of its debtors’ ability to honor their contracts is dependent upon real estate values, tourism demand and the economic conditions prevailing in its market areas.

Although the Company has a diversified loan portfolio, at September 30, 2024 and December 31, 2023, commercial real estate loans represented 57.8% and 56.7% of total loans receivable, respectively, and 216.5% and 215.5% of total stockholders’ equity at September 30, 2024 and December 31, 2023, respectively. Residential real estate loans represented 16.3% and 15.8% of total loans receivable and 61.0% and 60.1% of total stockholders’ equity at September 30, 2024 and December 31, 2023, respectively.

Approximately 79.6% of the Company’s total loans and 83.5% of the Company’s real estate loans as of September 30, 2024, are to borrowers whose collateral is located in Alabama, Arkansas, Florida, Texas and New York, the states in which the Company has its branch locations.

Any future volatility in the economy could cause the values of assets and liabilities recorded in the financial statements to change rapidly, resulting in material future adjustments in asset values, the allowance for credit losses and capital that could negatively impact the Company’s ability to meet regulatory capital requirements and maintain sufficient liquidity.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

17. Commitments and Contingencies

In the ordinary course of business, the Company makes various commitments and incurs certain contingent liabilities to fulfill the financing needs of its customers. These commitments and contingent liabilities include lines of credit and commitments to extend credit and issue standby letters of credit. The Company applies the same credit policies and standards as they do in the lending process when making these commitments. The collateral obtained is based on the assessed creditworthiness of the borrower.

At September 30, 2024 and December 31, 2023, commitments to extend credit of $4.53 billion and $4.59 billion, respectively, were outstanding. A percentage of these balances are participated out to other banks; therefore, the Company can call on the participating banks to fund future draws. Since some of these commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements.

Outstanding standby letters of credit are contingent commitments issued by the Company, generally to guarantee the performance of a customer in third-party borrowing arrangements. The term of the guarantee is dependent upon the creditworthiness of the borrower, some of which are long-term. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, commercial real estate and residential real estate. Management uses the same credit policies in granting lines of credit as it does for on-balance-sheet instruments. The maximum amount of future payments the Company could be required to make under these guarantees at September 30, 2024 and December 31, 2023, was $154.4 million and $185.5 million, respectively.

The Company and/or its bank subsidiary have various unrelated legal proceedings, most of which involve loan foreclosure activity pending, which, in the aggregate, are not expected to have a material adverse effect on the financial position or results of operations or cash flows of the Company and its subsidiary.

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Regulatory Matters

9 Months Ended

Sep. 30, 2024

Regulatory Matters [Abstract]

Regulatory Matters

18. Regulatory Matters

The Bank is subject to a legal limitation on dividends that can be paid to the parent company without prior approval of the applicable regulatory agencies. Arkansas bank regulators have specified that the maximum dividend limit state banks may pay to the parent company without prior approval is 75% of the current year earnings plus 75% of the retained net earnings of the preceding year. Since the Bank is also under supervision of the Federal Reserve, it is further limited if the total of all dividends declared in any calendar year by the Bank exceeds the Bank’s net profits to date for that year combined with its retained net profits for the preceding two years. During the nine months ended September 30, 2024, the Company requested approximately $232.4 million in regular dividends from its banking subsidiary.

The Company’s banking subsidiary is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Furthermore, the Company’s regulators could require adjustments to regulatory capital not reflected in the consolidated financial statements.

Quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios of total, Tier 1 common equity Tier 1 ("CET1") and 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, 2024, the Company meets all capital adequacy requirements to which it is subject.

On December 31, 2018, the federal banking agencies issued a joint final rule to revise their regulatory capital rules to permit bank holding companies and banks to phase-in, for regulatory capital purposes, the day-one impact of the new CECL accounting rule on retained earnings over a period of three years. As part of its response to the impact of COVID-19, on March 27, 2020, the federal banking regulatory agencies issued an interim final rule that provided the option to temporarily delay certain effects of CECL on regulatory capital for two years, followed by a three-year transition period. The interim final rule allows bank holding companies and banks to delay for two years 100% of the day-one impact of adopting CECL and 25% of the cumulative change in the reported allowance for credit losses since adopting CECL. The Company elected to adopt the interim final rule, which is reflected in the Company's risk-based capital ratios.

Basel III became effective for the Company and its bank subsidiary on January 1, 2015. Basel III amended the prompt corrective action rules to incorporate a CET1 requirement and to raise the capital requirements for certain capital categories. In order to be adequately capitalized for purposes of the prompt corrective action rules, a banking organization is required to have at least a 4.5% CET1 risk-based capital ratio, a 4% Tier 1 leverage capital ratio, a 6% Tier 1 risk-based capital ratio and an 8% total risk-based capital ratio.

The Federal Reserve Board’s risk-based capital guidelines include the definitions for (1) a well-capitalized institution, (2) an adequately-capitalized institution, and (3) an undercapitalized institution. Under Basel III, the criteria for a well-capitalized institution are: a 6.5% CET1 risk-based capital ratio, a 5% Tier 1 leverage capital ratio, an 8% Tier 1 risk-based capital ratio, and a 10% total risk-based capital ratio. As of September 30, 2024, the Bank met the capital standards for a well-capitalized institution. The Company’s CET1 risk-based capital ratio, Tier 1 leverage capital ratio, Tier 1 risk-based capital ratio, and total risk-based capital ratio were 14.65%, 12.54%, 14.65%, and 18.28%, respectively, as of September 30, 2024.

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Additional Cash Flow Information

9 Months Ended

Sep. 30, 2024

Supplemental Cash Flow Elements [Abstract]

Additional Cash Flow Information

19. Additional Cash Flow Information

The following is a summary of the Company’s additional cash flow information during the nine-month periods ended:

	September 30,
	2024		2023
	(In thousands)
Interest paid	$	324,658	$	241,466
Income taxes paid	80,075		106,619
Assets acquired by foreclosure	11,734		383

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Financial Instruments

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Financial Instruments

20. Financial Instruments

Fair value is the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair values:

Level 1	Quoted prices in active markets for identical assets or liabilities
Level 2	Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities
Level 3	Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities

A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Transfers of financial instruments between levels within the fair value hierarchy are recognized on the date management determines that the underlying circumstances or assumptions have changed.

Available-for-sale securities – the Company's available-for-sale securities are considered to be Level 2 securities. The Level 2 securities consist primarily of U.S. government-sponsored enterprises, mortgage-backed securities plus state and political subdivisions. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things.

The Company reviews the prices supplied by the independent pricing service, as well as their underlying pricing methodologies, for reasonableness and to ensure such prices are aligned with traditional pricing matrices. In general, the Company does not purchase investment portfolio securities with complicated structures. Pricing for the Company’s investment securities is fairly generic and is easily obtained. The Company uses a third-party comparison pricing vendor in order to reflect consistency in the fair values of the investment securities sampled by the Company each quarter.

Held-to-maturity securities – the Company's held-to-maturity securities are considered to be Level 2 securities. The Level 2 securities consist primarily of U.S. government-sponsored enterprises, mortgage-backed securities plus state and political subdivisions. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things.

Impaired loans – Impaired loans include loans individually analyzed for credit losses for which a specific reserve has been recorded, non-accrual loans, loans past due 90 days or more and restructured loans made to borrowers experiencing financial difficulty. Impaired loans are carried at the net realizable value of the collateral if the loan is collateral dependent. A portion of the allowance for credit losses is allocated to impaired loans if the value of such loans is deemed to be less than the unpaid balance. If these allocations cause the allowance for credit losses to require an increase, such increase is reported as a component of the provision for credit losses. The fair value of loans with specific allocated losses was $74.3 million and $10.5 million as of September 30, 2024 and December 31, 2023, respectively. This valuation is considered Level 3, consisting of appraisals of underlying collateral. The Company reversed $470,000 and $1.3 million of accrued interest receivable when impaired loans were put on non-accrual status during the three months ended September 30, 2024 and 2023, respectively. The Company reversed $956,000 and $1.9 million of accrued interest receivable when impaired loans were put on non-accrual status during the nine months ended September 30, 2024 and 2023, respectively.

Foreclosed assets held for sale – Foreclosed assets held for sale are held by the Company at fair value, less estimated costs to sell. At foreclosure, if the fair value, less estimated costs to sell, of the real estate acquired is less than the Company’s recorded investment in the related loan, a write-down is recognized through a charge to the allowance for credit losses. Additionally, valuations are periodically performed by management and any subsequent reduction in value is recognized by a charge to income. The fair value of foreclosed assets held for sale is estimated using Level 3 inputs based on appraisals of underlying collateral. As of September 30, 2024 and December 31, 2023, the fair value of foreclosed assets held for sale, less estimated costs to sell, was $43.0 million and $30.5 million, respectively.

No foreclosed assets held for sale were remeasured during the nine months ended September 30, 2024. Regulatory guidelines require the Company to reevaluate the fair value of foreclosed assets held for sale on at least an annual basis. The Company’s policy is to comply with the regulatory guidelines.

The significant unobservable (Level 3) inputs used in the fair value measurement of collateral for collateral-dependent impaired loans and foreclosed assets primarily relate to customized discounting criteria applied to the customer’s reported amount of collateral. The amount of the collateral discount depends upon the condition and marketability of the underlying collateral. As the Company’s primary objective in the event of default would be to monetize the collateral to settle the outstanding balance of the loan, less marketable collateral would receive a larger discount.

Fair Values of Financial Instruments

The following table presents the estimated fair values of the Company’s financial instruments. Fair value is the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date.

	September 30, 2024
	Carrying Amount		Fair Value		Level
	(In thousands)
Financial assets:
Cash and cash equivalents	$	1,017,677	$	1,017,677	1
Federal funds sold	6,425		6,425		1
Investment securities - available-for-sale	3,270,620		3,270,620		2
Investment securities - held-to-maturity	1,277,090		1,194,455		2
Loans receivable, net of impaired loans and allowance	14,397,652		14,489,849		3
Accrued interest receivable	118,871		118,871		1
FHLB, FRB & FNBB Bank stock; other equity investments	226,631		226,631		3
Marketable equity securities	51,540		51,540		1
Financial liabilities:
Deposits:
Demand and non-interest bearing	$	3,937,168	$	3,937,168	1
Savings and interest-bearing transaction accounts	10,966,426		10,966,426		1
Time deposits	1,802,116		1,792,949		3
Securities sold under agreements to repurchase	179,416		179,416		1
FHLB and other borrowed funds	1,300,750		1,277,447		2
Accrued interest payable	39,897		39,897		1
Subordinated debentures	439,394		388,048		3

	December 31, 2023
	Carrying Amount		Fair Value		Level
	(In thousands)
Financial assets:
Cash and cash equivalents	$	1,000,213	$	1,000,213	1
Federal funds sold	5,100		5,100		1
Investment securities - available-for-sale	3,507,841		3,507,841		2
Investment securities - held-to-maturity	1,281,982		1,170,481		2
Loans receivable, net of impaired loans and allowance	14,048,002		14,071,775		3
Accrued interest receivable	118,966		118,966		1
FHLB, FRB & FNBB Bank stock; other equity investments	223,748		223,748		3
Marketable equity securities	49,419		49,419		1
Financial liabilities:
Deposits:
Demand and non-interest bearing	$	4,085,501	$	4,085,501	1
Savings and interest-bearing transaction accounts	11,050,347		11,050,347		1
Time deposits	1,651,863		1,633,091		3
Securities sold under agreements to repurchase	142,085		142,085		1
FHLB and other borrowed funds	1,301,300		1,291,926		2
Accrued interest payable	19,124		19,124		1
Subordinated debentures	439,834		358,682		3

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Recent Accounting Pronouncements

9 Months Ended

Sep. 30, 2024

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Pronouncements

21. Recent Accounting Pronouncements

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04"). ASU 2020-04 provides optional expedients and exceptions for accounting related to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. ASU 2020-04 applies only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform and do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. ASU 2020-04 was effective upon issuance and generally can be applied through December 31, 2022. To ensure the relief in Topic 848 covers the period of time during which a significant number of modifications may take place, ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 (ASU 2022-06) defers the sunset date of Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848.

In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope ("ASU 2022-01"). The amendments in the update clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. Specifically, certain provisions in Topic 848, if elected by an entity, apply to derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. Amendments in the update to the expedients and exceptions in Topic 848 capture the incremental consequences of the scope clarification and tailor the existing guidance to derivative instruments affected by the discounting transition. The amendments in this Update do not apply to contract modifications made after December 31, 2022, new hedging relationships entered into after December 31, 2022, and existing hedging relationships evaluated for effectiveness in periods after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that apply certain optional expedients in which the accounting effects are recorded through the end of the hedging relationship. ASU 2020-04 was effective upon issuance and generally can be applied through December 31, 2022. To ensure the relief in Topic 848 covers the period of time during which a significant number of modifications may take place, ASU 2022-06 defers the sunset date of Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848.

In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848. These amendments extend the period of time preparers can utilize the reference rate reform relief guidance in Topic 848. The objective of the guidance in Topic 848 is to provide relief during the temporary transition period, so the FASB included a sunset provision within Topic 848 based on expectations of when the London Interbank Offered Rate (LIBOR) would cease being published. In 2021, the UK Financial Conduct Authority (FCA) delayed the intended cessation date of certain tenors of USD LIBOR to June 30, 2023. To ensure the relief in Topic 848 covers the period of time during which a significant number of modifications may take place, the ASU defers the sunset date of Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. ASU 2022-06 was effective upon issuance.

In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures." The amendments apply to all public entities that are required to report segment information in accordance with FASB ASC Topic 280, Segment Reporting. The amendments in the ASU are intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The amendments require that a public entity disclose, on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker ("CODM") and included within each reported measure of segment profit or loss. Public entities are required to disclose, on an annual and interim basis, an amount for other segment items by reportable segment and a description of its composition. In addition, public entities must provide all annual disclosures about a reportable segment’s profit or loss and assets currently required by FASB ASC Topic 280, Segment Reporting, in interim periods. The amendments clarify that if the CODM uses more than one measure of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources, a public entity may report one or more of those additional measures of segment profit. However, at least one of the reported segment profit or loss measures (or the single reported measure, if only one is disclosed) should be the measure that is most consistent with the measurement principles used in measuring the corresponding amounts in the public entity’s consolidated financial statements. The Amendments require that a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. Finally, the amendments require that a public entity that has a single reportable segment provide all the disclosures required by the amendments in the ASU and all existing segment disclosures in ASC Topic 280. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. A public entity should apply the amendments retrospectively to all prior periods presented in the financial statements. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. The Company is currently evaluating the potential impacts related to the adoption of the ASU.    

In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures." The amendments require that public business entities on an annual basis (a) disclose specific categories in the rate reconciliation and (b) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income (or loss) by the applicable statutory income tax rate). The amendments also require that all entities disclose on an annual basis the amount of income taxes paid (net of refunds received) disaggregated by federal (national), state, and foreign taxes, and the amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5 percent of total income taxes paid (net of refunds received). The amendments require that all entities disclose income (or loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign and income tax expense (or benefit) from continuing operations disaggregated by federal (national), state, and foreign. The ASU is effective for public business entities for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The amendments should be applied on a prospective basis. Retrospective application is permitted. The Company is currently evaluating the potential impacts related to the adoption of the ASU.

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Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

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Nature of Operations and Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Operating Segments

Operating Segments

Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Bank is the only significant subsidiary upon which management makes decisions regarding how to allocate resources and assess performance. Each of the branches of the Bank provides a group of similar banking services, including such products and services as commercial, real estate and consumer loans, time deposits, checking and savings accounts. The individual bank branches have similar operating and economic characteristics. While the chief decision maker monitors the revenue streams of the various products, services and branch locations, operations are managed, and financial performance is evaluated on a company-wide basis. Accordingly, all of the banking services and branch locations are considered by management to be aggregated into one reportable operating segment.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses, the valuation of investment securities, the valuation of foreclosed assets and the valuations of assets acquired, and liabilities assumed in business combinations. In connection with the determination of the allowance for credit losses and the valuation of foreclosed assets, management obtains independent appraisals for significant properties.

Principles of Consolidation

Principles of Consolidation

The consolidated financial statements include the accounts of HBI and its subsidiaries. Significant intercompany accounts and transactions have been eliminated in consolidation.

Reclassifications

Reclassifications

Various items within the accompanying consolidated financial statements for previous years have been reclassified to provide more comparative information. These reclassifications had no effect on net earnings or stockholders’ equity.

Interim financial information

Interim financial information

The accompanying unaudited consolidated financial statements have been prepared in condensed format, and therefore do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.

The information furnished in these interim statements reflects all adjustments which are, in the opinion of management, necessary for a fair statement of the results for each respective period presented. Such adjustments are of a normal recurring nature. The results of operations in the interim statements are not necessarily indicative of the results that may be expected for any other quarter or for the full year. The interim financial information should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2023 Form 10-K, filed with the Securities and Exchange Commission on February 26, 2024.

Loans Receivable and Allowance for Credit Losses

Loans Receivable and Allowance for Credit Losses

Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding principal balance adjusted for any charge-offs, deferred fees or costs on originated loans. Interest income on loans is accrued over the term of the loans based on the principal balance outstanding. Loan origination fees and direct origination costs are capitalized and recognized as adjustments to yield on the related loans.

The allowance for credit losses on loans receivable is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the uncollectability of a loan balance is confirmed and expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off.

Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in the national unemployment rate, gross domestic product, national retail sales index, FHFA housing price index and rental vacancy rate index.

The allowance for credit losses is measured based on call report segment as these types of loans exhibit similar risk characteristics. The identified loan segments are as follows:

•1-4 family construction

•All other construction

•1-4 family revolving home equity lines of credit (“HELOC”) & junior liens

•1-4 family senior liens

•Multifamily

•Owner occupied commercial real estate

•Non-owner occupied commercial real estate

•Commercial & industrial, agricultural, non-depository financial institutions, purchase/carry securities, other

•Consumer auto

•Other consumer

•Other consumer - Shore Premier Finance ("SPF")

The allowance for credit losses for each segment is measured through the use of the discounted cash flow method. Loans evaluated individually that are considered to be collateral dependent are not included in the collective evaluation. For these loans, where the Company has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the loan to be provided substantially through the operation or sale of the collateral, the allowance for credit losses is measured based on the difference between the fair value of the collateral, net of estimated costs to sell, and the amortized cost basis of the loan as of the measurement date. When repayment is expected to be from the operation of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the loan exceeds the present value of expected cash flows from the operation of the collateral. The allowance for credit losses may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the loan, net of estimated costs to sell. For individually analyzed loans which are not considered to be collateral dependent, an allowance is recorded based on the loss rate for the respective pool within the collective evaluation.

Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments and curtailments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies:

•Management has a reasonable expectation at the reporting date that restructured loans made to borrowers experiencing financial difficulty will be executed with an individual borrower.

•The extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company.

Management qualitatively adjusts model results for risk factors that are not considered within our modeling processes but are nonetheless relevant in assessing the expected credit losses within our loan pools. These qualitative factors ("Q-Factors") and other qualitative adjustments may increase or decrease management's estimate of expected credit losses by a calculated percentage or amount based upon the estimated level of risk. The various risks that may be considered in making Q-Factor and other qualitative adjustments include, among other things, the impact of (i) changes in lending policies, procedures and strategies; (ii) changes in nature and volume of the portfolio; (iii) staff experience; (iv) changes in volume and trends in classified loans, delinquencies and nonaccruals; (v) concentration risk; (vi) trends in underlying collateral values; (vii) external factors such as competition, legal and regulatory environment; (viii) changes in the quality of the loan review system; and (ix) economic conditions.

Loans are placed on non-accrual status when management believes that the borrower’s financial condition, after giving consideration to economic and business conditions and collection efforts, is such that collection of interest is doubtful, or generally when loans are 90 days or more past due. Loans are charged against the allowance for credit losses when management believes that the collectability of the principal is unlikely. Accrued interest related to non-accrual loans is generally charged against the allowance for credit losses when accrued in prior years and reversed from interest income if accrued in the current year. Interest income on non-accrual loans may be recognized to the extent cash payments are received, although the majority of payments received are usually applied to principal. Non-accrual loans are generally returned to accrual status when principal and interest payments are less than 90 days past due, the customer has made required payments for at least six months, and we reasonably expect to collect all principal and interest.

Purchased loans that have experienced more than insignificant credit deterioration since origination are purchase credit deteriorated (“PCD”) loans. An allowance for credit losses is determined using the same methodology as other loans. The Company develops separate PCD models for each loan segment with PCD loans not individually analyzed for credit losses. These models utilize a peer group benchmark in order to determine the probability of default and loss given default to be used in the calculation. The sum of the loan’s purchase price and allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a non-credit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the allowance for credit losses are recorded through the provision for credit losses.

Allowance for Credit Losses on Off-Balance Sheet Credit Exposures

Allowance for Credit Losses on Off-Balance Sheet Credit Exposures

The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on off-balance sheet credit exposures is adjusted as a provision for or recovery of credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life.

Earnings per Share

Earnings per Share

Basic earnings per share is computed based on the weighted-average number of shares outstanding during each year. Diluted earnings per share is computed using the weighted-average shares and all potential dilutive shares outstanding during the period.

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Nature of Operations and Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Computation of Basic and Diluted Earnings per Common Share (EPS)

The following table sets forth the computation of basic and diluted earnings per share (“EPS”) for the following periods:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(In thousands)
Net income	$	100,038	$	98,453	$	301,677	$	306,686
Average shares outstanding	199,380		202,526		200,300		202,921
Effect of common stock options	81		124		130		147
Average diluted shares outstanding	199,461		202,650		200,430		203,068
Basic earnings per share	$	0.50	$	0.49	$	1.51	$	1.51
Diluted earnings per share	$	0.50	$	0.49	$	1.51	$	1.51

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Investment Securities (Tables)

9 Months Ended

Sep. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Amortized Cost and Fair Value of Securities Available-for-Sale

The following table summarizes the amortized cost and fair value of securities that are classified as available-for-sale and held-to-maturity:

	September 30, 2024
	Available-for-Sale
	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized (Losses)		Estimated Fair Value
	(In thousands)
U.S. government-sponsored enterprises	$	321,233	$	—	$	321,233	$	1,800	$	(11,248)	$	311,785
U.S. government-sponsored mortgage-backed securities	1,574,430		—		1,574,430		1,105		(150,070)		1,425,465
Private mortgage-backed securities	186,916		—		186,916		115		(9,090)		177,941
Non-government-sponsored asset backed securities	264,497		—		264,497		646		(2,945)		262,198
State and political subdivisions	966,644		—		966,644		1,094		(66,804)		900,934
Other securities	215,605		(2,195)		213,410		539		(21,652)		192,297
Total	$	3,529,325	$	(2,195)	$	3,527,130	$	5,299	$	(261,809)	$	3,270,620

	September 30, 2024
	Held-to-Maturity
	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized (Losses)		Estimated Fair Value
	(In thousands)
U.S. government-sponsored enterprises	$	43,490	$	—	$	43,490	$	—	$	(1,712)	$	41,778
U.S. government-sponsored mortgage-backed securities	125,920		—		125,920		754		(2,288)		124,386
State and political subdivisions	1,109,685		(2,005)		1,107,680		197		(79,586)		1,028,291
Total	$	1,279,095	$	(2,005)	$	1,277,090	$	951	$	(83,586)	$	1,194,455

	December 31, 2023
	Available-for-Sale
	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized (Losses)		Estimated Fair Value
	(In thousands)
U.S. government-sponsored enterprises	$	361,494	$	—	$	361,494	$	2,247	$	(17,093)	$	346,648
U.S. government-sponsored mortgage-backed securities	1,711,668		—		1,711,668		310		(191,557)		1,520,421
Private mortgage-backed securities	191,522		—		191,522		—		(16,117)		175,405
Non-government-sponsored asset backed securities	370,203				370,203		821		(7,551)		363,473
State and political subdivisions	990,318		—		990,318		1,938		(75,931)		916,325
Other securities	215,722		(2,525)		213,197		402		(28,030)		185,569
Total	$	3,840,927	$	(2,525)	$	3,838,402	$	5,718	$	(336,279)	$	3,507,841

	December 31, 2023
	Held-to-Maturity
	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized (Losses)		Estimated Fair Value
	(In thousands)
U.S. government-sponsored enterprises	$	43,285	$	—	$	43,285	$	—	$	(2,607)	$	40,678
U.S. government-sponsored mortgage-backed securities	130,278		—		130,278		106		(4,362)		126,022
State and political subdivisions	1,110,424		(2,005)		1,108,419		456		(105,094)		1,003,781
Total	$	1,283,987	$	(2,005)	$	1,281,982	$	562	$	(112,063)	$	1,170,481

Amortized Cost and Estimated Fair Value of Securities Contractual Maturity

The amortized cost and estimated fair value of securities classified as available-for-sale and held-to-maturity at September 30, 2024, by contractual maturity, are shown below. Expected maturities could differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.

	Available-for-Sale				Held-to-Maturity
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
	(In thousands)
Due in one year or less	$	29,837	$	29,449	$	—	$	—
Due after one year through five years	256,357		245,060		43,548		42,380
Due after five years through ten years	377,774		346,905		341,352		321,196
Due after ten years	839,514		783,602		768,275		706,493
U.S. government-sponsored mortgage-backed securities	1,574,430		1,425,465		125,920		124,386
Private mortgage-backed securities	186,916		177,941		—		—
Non-government-sponsored asset backed securities	264,497		262,198		—		—
Total	$	3,529,325	$	3,270,620	$	1,279,095	$	1,194,455

Unrealized Losses and Estimated Fair Value of Investment Securities Available for Sale

The following table shows gross unrealized losses and estimated fair value of investment securities classified as available-for-sale and held-to-maturity, aggregated by investment category and length of time that individual investment securities have been in a continuous loss position as of September 30, 2024 and December 31, 2023.

	September 30, 2024
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
Available-for-sale:
U.S. government-sponsored enterprises	$	18,911	$	(132)	$	171,503	$	(11,116)	$	190,414	$	(11,248)
U.S. government-sponsored mortgage-backed securities	2,314		(23)		1,322,911		(150,047)		1,325,225		(150,070)
Private mortgage-backed securities	—		—		168,230		(9,090)		168,230		(9,090)
Non-government-sponsored asset backed securities	—		—		106,450		(2,945)		106,450		(2,945)
State and political subdivisions	22,859		(504)		771,340		(66,300)		794,199		(66,804)
Other securities	6,976		(1,079)		171,574		(20,573)		178,550		(21,652)
Total	$	51,060	$	(1,738)	$	2,712,008	$	(260,071)	$	2,763,068	$	(261,809)
Held-to-maturity:
U.S. government-sponsored enterprises	$	—	$	—	$	41,779	$	(1,712)	$	41,779	$	(1,712)
U.S. government-sponsored mortgage-backed securities	—		—		72,591		(2,288)		72,591		(2,288)
State and political subdivisions	22,950		(483)		994,010		(79,103)		1,016,960		(79,586)
Total	$	22,950	$	(483)	$	1,108,380	$	(83,103)	$	1,131,330	$	(83,586)

	December 31, 2023
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
Available-for-sale:
U.S. government-sponsored enterprises	$	2,742	$	(2)	$	180,569	$	(17,091)	$	183,311	$	(17,093)
U.S. government-sponsored mortgage-backed securities	102,831		(2,166)		1,392,318		(189,391)		1,495,149		(191,557)
Private mortgage-backed securities	9,298		(226)		166,107		(15,891)		175,405		(16,117)
Non-government-sponsored asset backed securities	—		—		213,838		(7,551)		213,838		(7,551)
State and political subdivisions	28,596		(400)		769,860		(75,531)		798,456		(75,931)
Other securities	—		—		164,430		(28,030)		164,430		(28,030)
Total	$	143,467	$	(2,794)	$	2,887,122	$	(333,485)	$	3,030,589	$	(336,279)
Held-to-maturity:
U.S. government-sponsored enterprises	$	—	$	—	$	40,677	$	(2,607)	$	40,677	$	(2,607)
U.S. government-sponsored mortgage-backed securities	48,498		(861)		65,573		(3,501)		114,071		(4,362)
State and political subdivisions	21,493		(297)		956,578		(104,797)		978,071		(105,094)
Total	$	69,991	$	(1,158)	$	1,062,828	$	(110,905)	$	1,132,819	$	(112,063)

Debt Securities, Available-for-Sale, Allowance for Credit Loss

Available-for-Sale Investment Securities
	September 30, 2024		December 31, 2023
Allowance for credit losses:	(In thousands)
Beginning balance	$	2,525	$	842
(Recovery of) provision for credit loss	(330)		1,683
Balance, September 30	$	2,195	$	2,525
Provision for credit loss			—
Balance, December 31, 2023			$	2,525

Debt Securities, Held-to-maturity, Allowance for Credit Loss

Held-to-Maturity Investment Securities
	September 30, 2024		December 31, 2023
Allowance for credit losses:	(In thousands)
Beginning balance	$	2,005	$	2,005
Provision for credit loss	—		—
Balance, September 30	$	2,005	$	2,005
Provision for credit loss			—
Balance, December 31, 2023			$	2,005

Held-to-Maturity Securities Credit Quality Indicators

The following table summarizes bond ratings for the Company’s held-to-maturity portfolio, based upon amortized cost, issued by state and political subdivisions and other securities as of September 30, 2024:

	State and political subdivisions		U.S. government-sponsored enterprises		U.S. government-sponsored mortgage-backed securities		Total
	(In thousands)
Aaa/AAA	$	238,872	$	43,490	$	—	$	282,362
Aa/AA	845,788		—		—		845,788
A	23,200		—		—		23,200
Not rated	1,825		—		—		1,825
Agency Backed	—		—		125,920		125,920
Total	$	1,109,685	$	43,490	$	125,920	$	1,279,095

Schedule of Income Earned on Available-for Sale Securities

Income earned on securities for the three months ended September 30, 2024 and 2023, is as follows:

	Three Months Ended September 30,				For the Nine Months Ended September 30,
	2024		2023		2024		2023
	(In thousands)
Taxable
Available-for-sale	$	23,550	$	27,028	$	74,439	$	82,080
Held-to-maturity	7,456		7,492		22,383		22,479
Non-taxable
Available-for-sale	4,612		4,746		13,971		14,369
Held-to-maturity	3,092		3,122		9,305		9,394
Total	$	38,710	$	42,388	$	120,098	$	128,322

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Loans Receivable (Tables)

9 Months Ended

Sep. 30, 2024

Receivables [Abstract]

Summary of Various Categories of Loans Receivable

The various categories of loans receivable are summarized as follows:

	September 30, 2024		December 31, 2023
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	5,496,536	$	5,549,954
Construction/land development	2,741,419		2,293,047
Agricultural	335,965		325,156
Residential real estate loans
Residential 1-4 family	1,932,352		1,844,260
Multifamily residential	482,648		435,736
Total real estate	10,988,920		10,448,153
Consumer	1,219,197		1,153,690
Commercial and industrial	2,084,667		2,324,991
Agricultural	352,963		307,327
Other	178,232		190,567
Total loans receivable	14,823,979		14,424,728
Allowance for credit losses	(312,574)		(288,234)
Loans receivable, net	$	14,511,405	$	14,136,494

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Allowance for Credit Losses, Credit Quality and Other (Tables)

9 Months Ended

Sep. 30, 2024

Receivables [Abstract]

Balance of Allowance for Credit Losses

The following table presents the activity in the allowance for credit losses for the three and nine months ended September 30, 2024:

	Three Months Ended September 30, 2024
	Construction/ Land Development		Other Commercial Real Estate		Residential Real Estate		Commercial & Industrial		Consumer & Other		Total
	(In thousands)
Allowance for credit losses:
Beginning balance	$	58,673	$	86,842	$	51,354	$	69,635	$	29,352	$	295,856
Loans charged off	—		—		(42)		(741)		(1,218)		(2,001)
Recoveries of loans previously charged off	7		34		54		143		281		519
Net loans recovered (charged off)	7		34		12		(598)		(937)		(1,482)
Provision for credit losses	4,718		9,799		8,059		(8,434)		4,058		18,200
Balance, September 30	$	63,398	$	96,675	$	59,425	$	60,603	$	32,473	$	312,574

	Nine Months Ended September 30, 2024
	Construction/ Land Development		Other Commercial Real Estate		Residential Real Estate		Commercial & Industrial		Consumer & Other		Total
	(In thousands)
Allowance for credit losses:
Beginning balance	$	33,877	$	78,635	$	55,860	$	92,810	$	27,052	$	288,234
Loans charged off	(81)		(1,164)		(260)		(4,500)		(3,072)		(9,077)
Recoveries of loans previously charged off	96		59		149		503		910		1,717
Net loans recovered (charged off)	15		(1,105)		(111)		(3,997)		(2,162)		(7,360)
Provision for credit losses	29,506		19,145		3,676		(28,210)		7,583		31,700
Balance, September 30	$	63,398	$	96,675	$	59,425	$	60,603	$	32,473	$	312,574

During the second quarter of 2024, the Company implemented updated allowance for credit loss models as part of the annual model review and challenge process. In light of the current commercial real estate ("CRE") environment, the allowance calculation called for a higher level of reserves for the CRE portfolio and a corresponding reduction in reserves for the commercial and industrial portfolio.

The following table presents the activity in the allowance for credit losses for the three and nine months ended September 30, 2023 and the year ended December 31, 2023:

	Three Months Ended September 30, 2023
	Construction/ Land Development		Other Commercial Real Estate		Residential Real Estate		Commercial & Industrial		Consumer & Other		Total
	(In thousands)
Allowance for credit losses:
Beginning balance	$	32,275	$	85,158	$	51,732	$	90,474	$	26,044	$	285,683
Loans charged off	(150)		(1,950)		(103)		(183)		(1,063)		(3,449)
Recoveries of loans previously charged off	33		25		22		119		329		528
Net loans recovered (charged off)	(117)		(1,925)		(81)		(64)		(734)		(2,921)
Provision for credit losses	484		(4,680)		3,233		2,059		1,704		2,800
Balance, September 30	$	32,642	$	78,553	$	54,884	$	92,469	$	27,014	$	285,562

	Nine Months Ended September 30, 2023 and Year Ended December 31, 2023
	Construction/ Land Development		Other Commercial Real Estate		Residential Real Estate		Commercial & Industrial		Consumer & Other		Total
	(In thousands)
Allowance for credit losses:
Beginning balance	$	32,243	$	93,848	$	50,963	$	89,354	$	23,261	$	289,669
Loans charged off	(175)		(2,023)		(192)		(7,015)		(3,058)		(12,463)
Recoveries of loans previously charged off	103		517		161		375		900		2,056
Net loans (charged off) recovered	(72)		(1,506)		(31)		(6,640)		(2,158)		(10,407)
Provision for credit loss - loans	471		(13,789)		3,952		9,755		5,911		6,300
Balance, September 30	32,642		78,553		54,884		92,469		27,014		285,562
Loans charged off	(88)		(312)		(77)		(2,142)		(973)		(3,592)
Recoveries of loans previously charged off	10		16		168		208		212		614
Net loans (charged off) recovered	(78)		(296)		91		(1,934)		(761)		(2,978)
Provision for credit loss - loans	1,313		378		885		2,275		799		5,650
Balance, December 31	$	33,877	$	78,635	$	55,860	$	92,810	$	27,052	$	288,234

Amortized Cost Basis of Loans on Nonaccrual Status and Loans Past Due Over 90 Days Still Accruing

The following table presents the amortized cost basis of loans on nonaccrual status and loans past due over 90 days still accruing as of September 30, 2024 and December 31, 2023:

	September 30, 2024
	Nonaccrual		Nonaccrual with Reserve		Loans Past Due Over 90 Days Still Accruing
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	48,086	$	42,025	$	709
Construction/land development	5,403		—		657
Agricultural	737		—		—
Residential real estate loans
Residential 1-4 family	23,905		—		1,495
Multifamily residential	592		—		—
Total real estate	78,723		42,025		2,861
Consumer	7,501		2,340		28
Commercial and industrial	8,511		2,162		2,405
Agricultural & other	1,012		—		62
Total	$	95,747	$	46,527	$	5,356

	December 31, 2023
	Nonaccrual		Nonaccrual with Reserve		Loans Past Due Over 90 Days Still Accruing
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	13,178	$	—	$	2,177
Construction/land development	12,094		—		255
Agricultural	431		—		—
Residential real estate loans
Residential 1-4 family	20,351		—		84
Total real estate	46,054		—		2,516
Consumer	3,423		—		79
Commercial and industrial	9,982		2,534		1,535
Agricultural & other	512		—		—
Total	$	59,971	$	2,534	$	4,130

Amortized Cost Basis of Collateral-dependent Impaired Loans

The following table presents the amortized cost basis of impaired loans (which includes loans individually analyzed for credit losses for which a specific reserve has been recorded, non-accrual loans, loans past due 90 days or more and restructured loans made to borrowers experiencing financial difficulty) by class of loans as of September 30, 2024 and December 31, 2023:

	September 30, 2024
	Commercial Real Estate		Residential Real Estate		Other
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	54,382	$	—	$	—
Construction/land development	6,060		—		—
Agricultural	737		—		—
Residential real estate loans
Residential 1-4 family	—		26,695		—
Multifamily residential	—		21,494		—
Total real estate	61,179		48,189		—
Consumer	—		—		10,527
Commercial and industrial	—		—		13,157
Agricultural & other	—		—		1,074
Total	$	61,179	$	48,189	$	24,758

	December 31, 2023
	Commercial Real Estate		Residential Real Estate		Other
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	39,813	$	—	$	—
Construction/land development	12,350		—		—
Agricultural	431		—		—
Residential real estate loans
Residential 1-4 family	—		21,386		—
Multifamily residential	—		—		—
Total real estate	52,594		21,386		—
Consumer	—		—		3,511
Commercial and industrial	—		—		16,890
Agricultural & other	—		—		512
Total	$	52,594	$	21,386	$	20,913

Summary of Aging Analysis for Loans Receivable

The following is an aging analysis for loans receivable as of September 30, 2024 and December 31, 2023:

	September 30, 2024
	Loans Past Due 30-59 Days		Loans Past Due 60-89 Days		Loans Past Due 90 Days or More		Total Past Due		Current Loans		Total Loans Receivable		Accruing Loans Past Due 90 Days or More
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	4,391	$	837	$	48,795	$	54,023	$	5,442,513	$	5,496,536	$	709
Construction/land development	778		221		6,060		7,059		2,734,360		2,741,419		657
Agricultural	177		198		737		1,112		334,853		335,965		—
Residential real estate loans
Residential 1-4 family	2,329		6,698		25,400		34,427		1,897,925		1,932,352		1,495
Multifamily residential	20,902		—		592		21,494		461,154		482,648		—
Total real estate	28,577		7,954		81,584		118,115		10,870,805		10,988,920		2,861
Consumer	2,928		155		7,529		10,612		1,208,585		1,219,197		28
Commercial and industrial	1,071		567		10,916		12,554		2,072,113		2,084,667		2,405
Agricultural & other	1,120		91		1,074		2,285		528,910		531,195		62
Total	$	33,696	$	8,767	$	101,103	$	143,566	$	14,680,413	$	14,823,979	$	5,356

	December 31, 2023
	Loans Past Due 30-59 Days		Loans Past Due 60-89 Days		Loans Past Due 90 Days or More		Total Past Due		Current Loans		Total Loans Receivable		Accruing Loans Past Due 90 Days or More
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	8,124	$	416	$	15,355	$	23,895	$	5,526,059	$	5,549,954	$	2,177
Construction/land development	1,430		—		12,349		13,779		2,279,268		2,293,047		255
Agricultural	474		314		431		1,219		323,937		325,156		—
Residential real estate loans
Residential 1-4 family	4,346		1,423		20,435		26,204		1,818,056		1,844,260		84
Multifamily residential	—		—		—		—		435,736		435,736		—
Total real estate	14,374		2,153		48,570		65,097		10,383,056		10,448,153		2,516
Consumer	1,022		303		3,502		4,827		1,148,863		1,153,690		79
Commercial and industrial	2,089		3,378		11,517		16,984		2,308,007		2,324,991		1,535
Agricultural and other	1,074		113		512		1,699		496,195		497,894		—
Total	$	18,559	$	5,947	$	64,101	$	88,607	$	14,336,121	$	14,424,728	$	4,130

Presentation of Classified Loans by Class and Risk Rating

Based on the most recent analysis performed, the risk category of loans by class of loans as of September 30, 2024 and December 31, 2023 is as follows:

	September 30, 2024
	Term Loans Amortized Cost Basis by Origination Year
	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	331	$	74	$	405
Risk rating 2	—		—		—		—		—		—		—		—
Risk rating 3	163,941		312,252		601,970		562,043		230,931		1,021,405		256,875		3,149,417
Risk rating 4	54,483		169,205		457,070		268,482		145,758		665,513		322,795		2,083,306
Risk rating 5	27		—		1,265		—		960		26,353		383		28,988
Risk rating 6	—		—		8,155		5,720		23,967		196,483		95		234,420
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total non-farm/non-residential	218,451		481,457		1,068,460		836,245		401,616		1,910,085		580,222		5,496,536
Construction/land development
Risk rating 1	$	—	$	—	$	—	$	10	$	—	$	—	$	—	$	10
Risk rating 2	—		136		—		—		—		165		37		338
Risk rating 3	535,815		411,289		424,306		84,734		41,633		62,671		65,049		1,625,497
Risk rating 4	131,982		189,494		466,044		79,663		9,720		24,720		205,071		1,106,694
Risk rating 5	—		623		1,431		—		—		—		—		2,054
Risk rating 6	—		73		2,559		1,909		299		933		981		6,754
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		72		—		—		—		72
Total construction/land development	667,797		601,615		894,340		166,388		51,652		88,489		271,138		2,741,419
Agricultural
Risk rating 1	$	700	$	—	$	1,462	$	—	$	—	$	—	$	—	$	2,162
Risk rating 2	278		241		—		1,853		—		—		—		2,372
Risk rating 3	35,210		34,159		32,111		15,598		21,231		44,924		31,107		214,340
Risk rating 4	13,118		10,178		27,185		19,868		10,503		26,221		5,214		112,287
Risk rating 5	—		—		—		—		—		571		—		571
Risk rating 6	—		—		—		1,621		1,084		1,335		193		4,233
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total agricultural	49,306		44,578		60,758		38,940		32,818		73,051		36,514		335,965
Total commercial real estate loans	$	935,554	$	1,127,650	$	2,023,558	$	1,041,573	$	486,086	$	2,071,625	$	887,874	$	8,573,920
Residential real estate loans
Residential 1-4 family
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	92	$	2	$	94
Risk rating 2	—		230		—		—		—		11		5		246
Risk rating 3	181,112		232,086		368,096		232,800		131,378		361,150		114,114		1,620,736
Risk rating 4	6,592		22,038		44,936		24,590		20,640		72,339		82,201		273,336
Risk rating 5	—		1,015		601		293		397		1,073		778		4,157
Risk rating 6	—		1,533		8,904		3,568		4,276		14,977		523		33,781
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		2		—		2
Total residential 1-4 family	187,704		256,902		422,537		261,251		156,691		449,644		197,623		1,932,352

	September 30, 2024
	Term Loans Amortized Cost Basis by Origination Year
	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Multifamily residential
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Risk rating 2	—		—		—		—		—		—		—		—
Risk rating 3	1,876		11,133		34,052		36,223		52,758		76,818		11,449		224,309
Risk rating 4	—		689		130,725		10,228		59,023		20,830		14,970		236,465
Risk rating 5	—		—		—		—		—		—		—		—
Risk rating 6	—		—		21,052		592		—		230		—		21,874
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total multifamily residential	1,876		11,822		185,829		47,043		111,781		97,878		26,419		482,648
Total real estate	$	1,125,134	$	1,396,374	$	2,631,924	$	1,349,867	$	754,558	$	2,619,147	$	1,111,916	$	10,988,920
Consumer
Risk rating 1	$	4,480	$	2,582	$	1,667	$	1,291	$	642	$	1,064	$	1,506	$	13,232
Risk rating 2	—		—		—		—		—		150		—		150
Risk rating 3	210,168		213,187		217,177		181,131		90,901		252,855		1,124		1,166,543
Risk rating 4	4,342		4,633		5,151		1,381		166		5,688		184		21,545
Risk rating 5	—		433		—		214		156		83		—		886
Risk rating 6	71		5,287		4,533		343		583		5,944		65		16,826
Risk rating 7	—		9		—		—		—		—		—		9
Risk rating 8	—		—		—		6		—		—		—		6
Total consumer	219,061		226,131		228,528		184,366		92,448		265,784		2,879		1,219,197
Commercial and industrial
Risk rating 1	$	3,402	$	1,207	$	793	$	651	$	219	$	21,338	$	10,740	$	38,350
Risk rating 2	48		132		1,074		185		5		19		2,142		3,605
Risk rating 3	72,780		511,791		239,265		62,304		42,767		210,038		205,363		1,344,308
Risk rating 4	57,244		34,109		29,322		29,917		8,695		66,115		308,873		534,275
Risk rating 5	—		86		485		4,526		33		—		1,305		6,435
Risk rating 6	38		12,082		68,479		13,365		34		13,526		50,159		157,683
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		1		—		—		1		9		—		11
Total commercial and industrial	133,512		559,408		339,418		110,948		51,754		311,045		578,582		2,084,667
Agricultural and other
Risk rating 1	$	643	$	378	$	222	$	16	$	105	$	—	$	782	$	2,146
Risk rating 2	537		304		28		—		—		—		2,447		3,316
Risk rating 3	45,944		51,932		39,142		27,332		24,600		32,955		106,271		328,176
Risk rating 4	30,475		4,469		8,446		6,964		388		15,305		127,762		193,809
Risk rating 5	1,915		—		312		—		61		543		5		2,836
Risk rating 6	—		4		—		46		59		683		120		912
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total agricultural and other	79,514		57,087		48,150		34,358		25,213		49,486		237,387		531,195
Total	$	1,557,221	$	2,239,000	$	3,248,020	$	1,679,539	$	923,973	$	3,245,462	$	1,930,764	$	14,823,979

	December 31, 2023
	Term Loans Amortized Cost Basis by Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential
Risk rating 1	$	—	$	—	$	—	$	—	$	232	$	116	$	55	$	403
Risk rating 2	—		—		—		—		111		—		—		111
Risk rating 3	305,742		584,860		568,413		243,177		216,746		934,111		440,414		3,293,463
Risk rating 4	83,089		557,540		242,217		224,378		149,258		590,864		95,360		1,942,706
Risk rating 5	—		—		10,000		—		14,095		42,694		758		67,547
Risk rating 6	—		8,198		9,958		23,743		24,380		179,350		95		245,724
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total non-farm/non-residential	388,831		1,150,598		830,588		491,298		404,822		1,747,135		536,682		5,549,954
Construction/land development
Risk rating 1	$	—	$	—	$	10	$	—	$	—	$	—	$	—	$	10
Risk rating 2	759		—		—		—		—		186		—		945
Risk rating 3	300,941		499,984		130,342		62,134		22,656		56,180		44,603		1,116,840
Risk rating 4	198,874		417,244		252,602		22,713		32,342		24,527		209,063		1,157,365
Risk rating 5	641		1,163		—		3,306		218		69		—		5,397
Risk rating 6	—		7,817		1,631		748		641		254		1,327		12,418
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		72		—		—		—		—		72
Total construction/land development	501,215		926,208		384,657		88,901		55,857		81,216		254,993		2,293,047
Agricultural
Risk rating 1	$	—	$	1,605	$	—	$	—	$	—	$	—	$	—	$	1,605
Risk rating 2	247		—		1,936		—		—		—		—		2,183
Risk rating 3	30,252		43,291		22,919		25,992		10,678		43,284		20,104		196,520
Risk rating 4	9,477		24,688		20,358		19,532		7,873		32,692		4,612		119,232
Risk rating 5	—		—		—		—		314		571		—		885
Risk rating 6	—		—		1,675		1,084		1,620		352		—		4,731
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total agricultural	39,976		69,584		46,888		46,608		20,485		76,899		24,716		325,156
Total commercial real estate loans	$	930,022	$	2,146,390	$	1,262,133	$	626,807	$	481,164	$	1,905,250	$	816,391	$	8,168,157
Residential real estate loans
Residential 1-4 family
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	144	$	2	$	146
Risk rating 2	259		—		—		—		—		20		1		280
Risk rating 3	246,462		366,149		241,985		145,339		93,751		324,569		122,950		1,541,205
Risk rating 4	14,992		37,444		55,406		21,240		13,313		67,084		62,356		271,835
Risk rating 5	—		243		246		479		831		1,343		40		3,182
Risk rating 6	71		5,361		2,926		4,064		3,432		10,567		1,189		27,610
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		2		—		2
Total residential 1-4 family	261,784		409,197		300,563		171,122		111,327		403,729		186,538		1,844,260

	December 31, 2023
	Term Loans Amortized Cost Basis by Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Multifamily residential
Risk rating 1	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Risk rating 2	—		—		—		—		—		—		—		—
Risk rating 3	3,314		9,827		37,755		44,407		31,436		53,068		6,537		186,344
Risk rating 4	669		77,185		69,546		64,295		8,116		18,490		7,822		246,123
Risk rating 5	—		—		—		—		—		3,006		—		3,006
Risk rating 6	—		—		—		—		263		—		—		263
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total multifamily residential	3,983		87,012		107,301		108,702		39,815		74,564		14,359		435,736
Total real estate	$	1,195,789	$	2,642,599	$	1,669,997	$	906,631	$	632,306	$	2,383,543	$	1,017,288	$	10,448,153
Consumer
Risk rating 1	$	5,195	$	2,952	$	2,002	$	839	$	355	$	1,114	$	1,580	$	14,037
Risk rating 2	—		—		—		—		126		54		—		180
Risk rating 3	240,897		245,543		211,312		108,009		108,063		191,220		1,264		1,106,308
Risk rating 4	9,597		7,534		2,479		69		109		6,073		214		26,075
Risk rating 5	22		—		22		483		872		261		—		1,660
Risk rating 6	204		1,559		830		581		881		1,349		11		5,415
Risk rating 7	15		—		—		—		—		—		—		15
Risk rating 8	—		—		—		—		—		—		—		—
Total consumer	255,930		257,588		216,645		109,981		110,406		200,071		3,069		1,153,690
Commercial and industrial
Risk rating 1	$	3,757	$	918	$	1,120	$	236	$	121	$	20,835	$	12,644	$	39,631
Risk rating 2	174		1,293		220		12		164		218		963		3,044
Risk rating 3	487,896		272,608		78,507		50,340		77,761		170,610		227,043		1,364,765
Risk rating 4	115,025		34,474		55,812		33,000		27,189		71,854		378,417		715,771
Risk rating 5	21		547		16,318		3,352		201		980		1,767		23,186
Risk rating 6	12,498		75,536		4,942		1,154		9,086		12,180		63,198		178,594
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total commercial and industrial	619,371		385,376		156,919		88,094		114,522		276,677		684,032		2,324,991
Agricultural and other
Risk rating 1	$	408	$	131	$	16	$	105	$	—	$	2	$	563	$	1,225
Risk rating 2	396		28		1		—		1,181		100		693		2,399
Risk rating 3	52,758		45,796		31,378		26,918		3,059		43,984		145,419		349,312
Risk rating 4	14,007		7,663		8,025		955		10,955		3,188		94,186		138,979
Risk rating 5	—		2,286		—		134		—		593		665		3,678
Risk rating 6	71		33		63		108		—		370		1,656		2,301
Risk rating 7	—		—		—		—		—		—		—		—
Risk rating 8	—		—		—		—		—		—		—		—
Total agricultural and other	67,640		55,937		39,483		28,220		15,195		48,237		243,182		497,894
Total	$	2,138,730	$	3,341,500	$	2,083,044	$	1,132,926	$	872,429	$	2,908,528	$	1,947,571	$	14,424,728

The following table presents gross write-offs by origination date as of September 30, 2024 and December 31, 2023.

	September 30, 2024
	Gross Loan Write-Offs by Origination Year
	2024			2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Real estate
Commercial real estate loans
Non-farm/non-residential	$	—		$	—	$	—	$	780	$	1	$	383	$	—	$	1,164
Construction/land development	—			—		—		48		33		—		—		81
Agricultural	—			—		—		—		—		—		—		—
Residential real estate loans
Residential 1-4 family	—			1		100		1		26		132		—		260
Total real estate	—			1		100		829		60		515		—		1,505
Consumer	4			86		75		40		109		485		—		799
Commercial and industrial	—			557		89		292		108		199		3,255		4,500
Agricultural & other	2,202		*	71		—		—		—		—		—		2,273
Total	$	2,206		$	715	$	264	$	1,161	$	277	$	1,199	$	3,255	$	9,077

*The 2024 write-off consists entirely of overdrafts.

	December 31, 2023
	Gross Loan Write-Offs by Origination Year
	2023			2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Real estate
Commercial real estate loans
Non-farm/non-residential	$	—		$	—	$	—	$	—	$	1,826	$	502	$	—	$	2,328
Construction/land development	—			2		168		5		—		88		—		263
Agricultural	—			—		—		—		1		6		—		7
Residential real estate loans
Residential 1-4 family	—			29		28		73		13		126		—		269
Total real estate	—			31		196		78		1,840		722		—		2,867
Consumer	—			51		44		98		63		263		25		544
Commercial and industrial	—			407		1,110		894		911		5,369		466		9,157
Agricultural & other	3,252		**	1		1		2		64		3		164		3,487
Total	$	3,252		$	490	$	1,351	$	1,072	$	2,878	$	6,357	$	655	$	16,055

**The 2023 write-offs consist entirely of overdrafts.

The Company considers the performance of the loan portfolio and its impact on the allowance for credit losses. The Company also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following tables present the amortized cost of performing and nonperforming loans as of September 30, 2024 and December 31, 2023.

	September 30, 2024
	Term Loans Amortized Cost Basis by Origination Year
	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential
Performing	$	218,451	$	481,457	$	1,068,305	$	835,292	$	387,389	$	1,871,118	$	580,142	$	5,442,154
Non-performing	—		—		155		953		14,227		38,967		80		54,382
Total non-farm/non-residential	218,451		481,457		1,068,460		836,245		401,616		1,910,085		580,222		5,496,536
Construction/land development
Performing	$	667,797	$	601,542	$	891,810	$	164,990	$	51,470	$	87,594	$	270,156	$	2,735,359
Non-performing	—		73		2,530		1,398		182		895		982		6,060
Total construction/ land development	667,797		601,615		894,340		166,388		51,652		88,489		271,138		2,741,419
Agricultural
Performing	$	49,306	$	44,578	$	60,758	$	38,875	$	32,818	$	72,572	$	36,321	$	335,228
Non-performing	—		—		—		65		—		479		193		737
Total agricultural	49,306		44,578		60,758		38,940		32,818		73,051		36,514		335,965
Total commercial real estate loans	$	935,554	$	1,127,650	$	2,023,558	$	1,041,573	$	486,086	$	2,071,625	$	887,874	$	8,573,920
Residential real estate loans
Residential 1-4 family
Performing	$	187,704	$	255,185	$	416,753	$	257,574	$	153,384	$	437,827	$	197,230	$	1,905,657
Non-performing	—		1,717		5,784		3,677		3,307		11,817		393		26,695
Total residential 1-4 family	187,704		256,902		422,537		261,251		156,691		449,644		197,623		1,932,352
Multifamily residential
Performing	$	1,876	$	11,822	$	164,927	$	46,451	$	111,781	$	97,878	$	26,419	$	461,154
Non-performing	—		—		20,902		592		—		—		—		21,494
Total multifamily residential	1,876		11,822		185,829		47,043		111,781		97,878		26,419		482,648
Total real estate	$	1,125,134	$	1,396,374	$	2,631,924	$	1,349,867	$	754,558	$	2,619,147	$	1,111,916	$	10,988,920
Consumer
Performing	$	218,988	$	225,480	$	225,577	$	184,063	$	91,893	$	259,861	$	2,808	$	1,208,670
Non-performing	73		651		2,951		303		555		5,923		71		10,527
Total consumer	219,061		226,131		228,528		184,366		92,448		265,784		2,879		1,219,197
Commercial and industrial
Performing	$	133,512	$	556,469	$	336,274	$	109,586	$	51,740	$	306,000	$	577,929	$	2,071,510
Non-performing	—		2,939		3,144		1,362		14		5,045		653		13,157
Total commercial and industrial	133,512		559,408		339,418		110,948		51,754		311,045		578,582		2,084,667
Agricultural and other
Performing	$	79,514	$	57,083	$	48,150	$	34,312	$	25,209	$	48,579	$	237,274	$	530,121
Non-performing	—		4		—		46		4		907		113		1,074
Total agricultural and other	79,514		57,087		48,150		34,358		25,213		49,486		237,387		531,195
Total	$	1,557,221	$	2,239,000	$	3,248,020	$	1,679,539	$	923,973	$	3,245,462	$	1,930,764	$	14,823,979

	December 31, 2023
	Term Loans Amortized Cost Basis by Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential
Performing	$	388,831	$	1,150,598	$	821,373	$	490,153	$	404,061	$	1,718,776	$	536,349	$	5,510,141
Non-performing	—		—		9,215		1,145		761		28,359		333		39,813
Total non-farm/non-residential	388,831		1,150,598		830,588		491,298		404,822		1,747,135		536,682		5,549,954
Construction/land development
Performing	$	501,215	$	918,390	$	382,954	$	88,204	$	55,239	$	81,028	$	253,667	$	2,280,697
Non-performing	—		7,818		1,703		697		618		188		1,326		12,350
Total construction/land development	501,215		926,208		384,657		88,901		55,857		81,216		254,993		2,293,047
Agricultural
Performing	$	39,976	$	69,584	$	46,809	$	46,608	$	20,485	$	76,547	$	24,716	$	324,725
Non-performing	—		—		79		—		—		352		—		431
Total agricultural	39,976		69,584		46,888		46,608		20,485		76,899		24,716		325,156
Total commercial real estate loans	$	930,022	$	2,146,390	$	1,262,133	$	626,807	$	481,164	$	1,905,250	$	816,391	$	8,168,157
Residential real estate loans
Residential 1-4 family
Performing	$	261,784	$	405,239	$	298,207	$	167,475	$	108,091	$	396,130	$	185,948	$	1,822,874
Non-performing	—		3,958		2,356		3,647		3,236		7,599		590		21,386
Total residential 1-4 family	261,784		409,197		300,563		171,122		111,327		403,729		186,538		1,844,260
Multifamily residential
Performing	$	3,983	$	87,012	$	107,301	$	108,702	$	39,815	$	74,564	$	14,359	$	435,736
Non-performing	—		—		—		—		—		—		—		—
Total multifamily residential	3,983		87,012		107,301		108,702		39,815		74,564		14,359		435,736
Total real estate	$	1,195,789	$	2,642,599	$	1,669,997	$	906,631	$	632,306	$	2,383,543	$	1,017,288	$	10,448,153
Consumer
Performing	$	255,771	$	256,826	$	215,831	$	109,442	$	110,267	$	198,982	$	3,060	$	1,150,179
Non-performing	159		762		814		539		139		1,089		9		3,511
Total consumer	255,930		257,588		216,645		109,981		110,406		200,071		3,069		1,153,690
Commercial and industrial
Performing	$	616,809	$	382,190	$	156,056	$	87,531	$	111,529	$	273,434	$	680,552	$	2,308,101
Non-performing	2,562		3,186		863		563		2,993		3,243		3,480		16,890
Total commercial and industrial	619,371		385,376		156,919		88,094		114,522		276,677		684,032		2,324,991
Agricultural and other
Performing	$	67,569	$	55,904	$	39,473	$	28,220	$	15,195	$	48,203	$	242,818	$	497,382
Non-performing	71		33		10		—		—		34		364		512
Total agricultural and other	67,640		55,937		39,483		28,220		15,195		48,237		243,182		497,894
Total	$	2,138,730	$	3,341,500	$	2,083,044	$	1,132,926	$	872,429	$	2,908,528	$	1,947,571	$	14,424,728

Presentation of Troubled Debt Restructurings ("TDRs") by Class

The following table presents the amortized cost basis of modified loans to borrowers experiencing financial difficulty by class and modification type at September 30, 2024 and December 31, 2023. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below.

	September 30, 2024
									Combination of Modifications
	Term Extension		Interest Rate Reduction		Principal Reduction		Interest Only		Interest Rate Reduction and Term Extension		Principal Reduction and Interest Rate Reduction		Term Extension and Interest Only		Term Extension and Principal Reduction		Post- Modification Outstanding Balance		Percentage of Total Class of Loans Receivable
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	389	$	—	$	—	$	1,307	$	342	$	—	$	15,874	$	—	$	17,912	0.33	%
Construction/land development	—		—		—		78		—		—		—		—		78		—
Residential real estate loans
Residential 1-4 family	1,061		951		103		23		606		—		—		117		2,861		0.15
Total real estate	1,450		951		103		1,408		948		—		15,874		117		20,851		0.19
Consumer	6		—		—		9		—		3		—		—		18		—
Commercial and industrial	2,308		—		—		992		74		—		—		—		3,374		0.16
Total	$	3,764	$	951	$	103	$	2,409	$	1,022	$	3	$	15,874	$	117	$	24,243	0.16	%

	December 31, 2023
									Combination of Modifications
	Term Extension		Interest Rate Reduction		Principal Reduction		Interest Only		Interest Rate Reduction and Term Extension		Principal Reduction and Interest Rate Reduction		Term Extension and Interest Only		Term Extension and Principal Reduction		Post- Modification Outstanding Balance		Percentage of Total Class of Loans Receivable
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	398	$	—	$	—	$	1,537	$	348	$	—	$	16,023	$	—	$	18,306	0.33	%
Construction/land development	—		—		—		149		—		—		—		—		149		0.01
Residential real estate loans
Residential 1-4 family	560		598		106		59		516		—		—		116		1,955		0.11
Total real estate	958		598		106		1,745		864		—		16,023		116		20,410		0.20
Consumer	14		—		1		10		—		5		—		—		30		—
Commercial and industrial	2,253		38		42		1,763		74		—		—		—		4,170		0.18
Total	$	3,225	$	636	$	149	$	3,518	$	938	$	5	$	16,023	$	116	$	24,610	0.17	%

Presentation of TDR's on Non-Accrual Status

The following table presents the amortized cost basis of loans that had a payment default during the nine months ended September 30, 2024 and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty.

	September 30, 2024
	Term Extension		Interest Rate Reduction		Combination Interest Rate Reduction and Term Extension
	(Dollars in thousands)
Real estate
Commercial real estate loans
Non-farm/non-residential	$	—	$	—	$	—
Residential real estate loans
Residential 1-4 family	385		511		238
Total real estate	385		511		238
Consumer	6		—		—
Commercial and industrial	—		—		—
Total	$	391	$	511	$	238

Summary of Total Foreclosed Assets

The following is a presentation of total foreclosed assets as of September 30, 2024 and December 31, 2023:

	September 30, 2024		December 31, 2023
	(In thousands)
Commercial real estate loans
Non-farm/non-residential	$	29,824	$	29,894
Construction/land development	12,919		47
Residential real estate loans
Residential 1-4 family	297		545
Total foreclosed assets held for sale	$	43,040	$	30,486

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Goodwill and Core Deposits and Other Intangibles (Tables)

9 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Changes in Carrying Amount and Accumulated Amortization of Company's Goodwill and Core Deposits and Other Intangibles

Changes in the carrying amount and accumulated amortization of the Company’s goodwill and core deposits and other intangibles at September 30, 2024 and December 31, 2023, were as follows:

	September 30, 2024		December 31, 2023
	(In thousands)
Goodwill
Balance, beginning of period	$	1,398,253	$	1,398,253
Balance, end of period	$	1,398,253	$	1,398,253

	September 30, 2024		December 31, 2023
	(In thousands)
Core Deposit Intangibles
Balance, beginning of period	$	48,770	$	58,455
Amortization expense	(6,375)		(7,432)
Balance, September 30	$	42,395	51,023
Amortization expense			(2,253)
Balance, end of year			$	48,770

Summary of Carrying Amount and Accumulated Amortization of Core Deposits and Other Intangibles

The carrying basis and accumulated amortization of core deposit intangibles at September 30, 2024 and December 31, 2023 were:

	September 30, 2024		December 31, 2023
	(In thousands)
Gross carrying basis	$	128,888	$	128,888
Accumulated amortization	(86,493)		(80,118)
Net carrying amount	$	42,395	$	48,770

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Securities Sold Under Agreements to Repurchase (Tables)

9 Months Ended

Sep. 30, 2024

Securities Sold under Agreements to Repurchase [Abstract]

Summary of Remaining Contractual Maturity of Securities Sold Under Agreements to Repurchase

The remaining contractual maturity of securities sold under agreements to repurchase in the consolidated balance sheets as of September 30, 2024 and December 31, 2023 is presented in the following table:

	September 30, 2024				December 31, 2023
	Overnight and Continuous		Total		Overnight and Continuous		Total
	(In thousands)
Securities sold under agreements to repurchase:
U.S. government-sponsored enterprises	$	9,964	$	9,964	$	—	$	—
Mortgage-backed securities	51,314		51,314		—		—
State and political subdivisions	21,808		21,808		—		—
Other securities	96,330		96,330		142,085		142,085
Total borrowings	$	179,416	$	179,416	$	142,085	$	142,085

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Subordinated Debentures (Tables)

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Preferred Trust Securities and Subordinated Debentures

Subordinated debentures at September 30, 2024 and December 31, 2023 consisted of the following components:

	As of September 30, 2024		As of December 31, 2023
	(In thousands)
Subordinated debt securities
Subordinated notes, net of issuance costs, issued in 2020, due 2030, fixed rate of 5.50% during the first five years and at a floating rate of 534.5 basis points above the then three-month SOFR rate, reset quarterly, thereafter, callable in 2025 without penalty	$	141,096	$	142,084
Subordinated notes, net of issuance costs, issued in 2022, due 2032, fixed rate of 3.125% during the first five years and at a floating rate of 182 basis points above the then three-month SOFR rate, reset quarterly, thereafter, callable in 2027 without penalty	298,298		297,750
Total	$	439,394	$	439,834

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Income Taxes (Tables)

9 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

Summary of Components of Provision (Benefit) for Income Taxes

The following is a summary of the components of the provision for income taxes for the three and nine months ended September 30, 2024 and 2023:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2024		2023		2024		2023
	(In thousands)
Current:
Federal	$	26,586	$	23,861	$	75,213	$	76,059
State	5,412		4,858		15,312		15,484
Total current	31,998		28,719		90,525		91,543
Deferred:
Federal	(2,453)		1,758		570		715
State	(499)		358		116		146
Total deferred	(2,952)		2,116		686		861
Income tax expense	$	29,046	$	30,835	$	91,211	$	92,404

Reconciliation between Statutory Federal Income Tax Rate and Effective Income Tax Rate

The reconciliation between the statutory federal income tax rate and effective income tax rate is as follows for the three and nine months ended September 30, 2024 and 2023:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Statutory federal income tax rate	21.00	%	21.00	%	21.00	%	21.00	%
Effect of non-taxable interest income	(1.28)		(0.64)		(0.98)		(0.71)
Stock compensation	0.58		0.29		0.57		0.29
State income taxes, net of federal benefit	2.45		2.73		2.57		2.64
Executive officer compensation & other	(0.25)		0.47		0.06		(0.07)
Effective income tax rate	22.50	%	23.85	%	23.22	%	23.15	%

Differences between Tax Basis of Assets and Liabilities

The types of temporary differences between the tax basis of assets and liabilities and their financial reporting amounts that give rise to deferred income tax assets and liabilities, and their approximate tax effects, are as follows:

	September 30, 2024		December 31, 2023
	(In thousands)
Deferred tax assets:
Allowance for credit losses	$	86,628	$	81,251
Deferred compensation	6,448		7,619
Stock compensation	5,344		6,803
Non-accrual interest income	1,786		1,463
Real estate owned	70		79
Unrealized loss on investment securities, available-for-sale	62,211		81,493
Loan discounts	3,689		5,119
Investments	23,580		25,789
Other	19,084		14,691
Gross deferred tax assets	208,840		224,307
Deferred tax liabilities:
Accelerated depreciation on premises and equipment	—		1,477
Tax basis on acquisitions	6,691		4,061
Core deposit intangibles	9,610		11,021
FHLB dividends	2,835		2,351
Other	13,075		8,233
Gross deferred tax liabilities	32,211		27,143
Net deferred tax assets	$	176,629	$	197,164

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Common Stock, Compensation Plans and Other (Tables)

9 Months Ended

Sep. 30, 2024

Equity [Abstract]

Summary of Stock Option Transactions under Plan

The table below summarizes the stock option transactions under the Plan at September 30, 2024 and December 31, 2023 and changes during the nine-month period and year then ended:

	For the Nine Months Ended September 30, 2024			For the Year Ended December 31, 2023
	Shares (000)	Weighted- Average Exercisable Price		Shares (000)	Weighted- Average Exercisable Price
Outstanding, beginning of year	2,776	$	20.95	2,971	$	20.45
Granted	—	—		25	22.63
Forfeited/Expired	(33)	21.87		(10)	23.38
Exercised	(952)	18.13		(210)	14.01
Outstanding, end of period	1,791	22.43		2,776	20.95
Exercisable, end of period	1,253	22.11		1,940	20.05

Summary of Stock Options on Valuation Assumptions

The assumptions used in determining the fair value of the 2024 and 2023 stock option grants were as follows:

	For the Nine Months Ended September 30, 2024	For the Year Ended December 31, 2023
Expected dividend yield	Not Applicable	2.98	%
Expected stock price volatility	Not Applicable	27.97	%
Risk-free interest rate	Not Applicable	3.37	%
Expected life of options	Not Applicable	6.5 years

Summary of Currently Outstanding and Exercisable Options

The following is a summary of currently outstanding and exercisable options at September 30, 2024:

Options Outstanding					Options Exercisable
Exercise Prices	Options Outstanding Shares (000)	Weighted- Average Remaining Contractual Life (in years)	Weighted- Average Exercise Price		Options Exercisable Shares (000)	Weighted- Average Exercise Price
$16.00 to $17.99	40	0.54	$	17.12	40	$	17.12
$18.00 to $19.99	188	1.32	18.53		188	18.53
$20.00 to $21.99	220	3.73	20.88		186	20.92
$22.00 to $23.99	1,253	3.90	23.22		767	23.19
$24.00 to $25.99	90	3.65	25.59		72	25.93
	1,791				1,253

Summary of Company's Restricted Stock Issued and Outstanding

The table below summarized the activity for the Company’s restricted stock issued and outstanding at September 30, 2024 and December 31, 2023 and changes during the period and year then ended:

	As of September 30, 2024		As of December 31, 2023
	(In thousands)
Beginning of year	1,429		1,381
Issued	516		261
Vested	(461)		(152)
Forfeited	(59)		(61)
End of period	1,425		1,429
Amount of expense for the nine months and twelve months ended, respectively	$	5,963	$	8,016

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Non-Interest Expense (Tables)

9 Months Ended

Sep. 30, 2024

Noninterest Expense [Abstract]

Components of Non-Interest Expense

The table below shows the components of non-interest expense for the three and nine months ended September 30, 2024 and 2023:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(In thousands)
Salaries and employee benefits	$	58,861	$	64,512	$	180,198	$	193,536
Occupancy and equipment	14,546		15,463		43,505		45,338
Data processing expense	9,088		9,103		27,170		27,222
Other operating expenses:
Advertising	1,810		2,295		5,156		6,624
Amortization of intangibles	2,095		2,477		6,375		7,432
Electronic banking expense	3,569		3,709		10,137		10,714
Directors’ fees	362		417		1,283		1,415
Due from bank service charges	302		282		860		841
FDIC and state assessment	3,360		2,794		12,172		9,514
Insurance	926		878		2,734		2,694
Legal and accounting	1,902		1,514		6,600		4,038
Other professional fees	2,062		2,117		6,406		7,175
Operating supplies	673		860		1,969		2,361
Postage	522		491		1,542		1,578
Telephone	455		544		1,369		1,645
Other expense	9,512		7,306		27,250		23,561
Total other operating expenses	27,550		25,684		83,853		79,592
Total non-interest expense	$	110,045	$	114,762	$	334,726	$	345,688

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Leases (Tables)

9 Months Ended

Sep. 30, 2024

Leases [Abstract]

Minimum Rental Commitments under Operating Leases

The minimum rental commitments under these noncancelable operating leases are as follows (in thousands) as of September 30, 2024 and December 31, 2023:

	September 30, 2024		December 31, 2023
2024	$	2,678	$	9,373
2025	10,201		8,549
2026	9,468		8,111
2027	8,144		7,223
2028	6,368		5,496
Thereafter	22,053		19,827
Total future minimum lease payments	$	58,912	$	58,579
Discount effect of cash flows	(13,064)		(13,551)
Present value of net future minimum lease payments	$	45,848	$	45,028

Additional Information of Lease Expense

Additional information (dollar amounts in thousands):

	Three Months Ended						Nine Months Ended
Lease expense:	September 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Operating lease expense	$	2,266		$	2,059		$	6,901		$	5,937
Short-term lease expense	—			—			—			—
Variable lease expense	302			289			895			810
Total lease expense	$	2,568		$	2,348		$	7,796		$	6,747
Other information:
Cash paid for amounts included in the measurement of lease liabilities	$	1,972		$	2,136		$	6,802		$	6,146
Weighted-average remaining lease term (in years)	7.64			8.33			7.75			8.62
Weighted-average discount rate	3.52		%	3.43		%	3.46		%	3.44		%

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Additional Cash Flow Information (Tables)

9 Months Ended

Sep. 30, 2024

Supplemental Cash Flow Elements [Abstract]

Summary of Additional Cash Flow Information

The following is a summary of the Company’s additional cash flow information during the nine-month periods ended:

	September 30,
	2024		2023
	(In thousands)
Interest paid	$	324,658	$	241,466
Income taxes paid	80,075		106,619
Assets acquired by foreclosure	11,734		383

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Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Estimated Fair Values of Financial Instruments

The following table presents the estimated fair values of the Company’s financial instruments. Fair value is the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date.

	September 30, 2024
	Carrying Amount		Fair Value		Level
	(In thousands)
Financial assets:
Cash and cash equivalents	$	1,017,677	$	1,017,677	1
Federal funds sold	6,425		6,425		1
Investment securities - available-for-sale	3,270,620		3,270,620		2
Investment securities - held-to-maturity	1,277,090		1,194,455		2
Loans receivable, net of impaired loans and allowance	14,397,652		14,489,849		3
Accrued interest receivable	118,871		118,871		1
FHLB, FRB & FNBB Bank stock; other equity investments	226,631		226,631		3
Marketable equity securities	51,540		51,540		1
Financial liabilities:
Deposits:
Demand and non-interest bearing	$	3,937,168	$	3,937,168	1
Savings and interest-bearing transaction accounts	10,966,426		10,966,426		1
Time deposits	1,802,116		1,792,949		3
Securities sold under agreements to repurchase	179,416		179,416		1
FHLB and other borrowed funds	1,300,750		1,277,447		2
Accrued interest payable	39,897		39,897		1
Subordinated debentures	439,394		388,048		3

	December 31, 2023
	Carrying Amount		Fair Value		Level
	(In thousands)
Financial assets:
Cash and cash equivalents	$	1,000,213	$	1,000,213	1
Federal funds sold	5,100		5,100		1
Investment securities - available-for-sale	3,507,841		3,507,841		2
Investment securities - held-to-maturity	1,281,982		1,170,481		2
Loans receivable, net of impaired loans and allowance	14,048,002		14,071,775		3
Accrued interest receivable	118,966		118,966		1
FHLB, FRB & FNBB Bank stock; other equity investments	223,748		223,748		3
Marketable equity securities	49,419		49,419		1
Financial liabilities:
Deposits:
Demand and non-interest bearing	$	4,085,501	$	4,085,501	1
Savings and interest-bearing transaction accounts	11,050,347		11,050,347		1
Time deposits	1,651,863		1,633,091		3
Securities sold under agreements to repurchase	142,085		142,085		1
FHLB and other borrowed funds	1,301,300		1,291,926		2
Accrued interest payable	19,124		19,124		1
Subordinated debentures	439,834		358,682		3

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Nature of Operations and Summary of Significant Accounting Policies - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2024 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable operating segment	1

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Nature of Operations and Summary of Significant Accounting Policies - Computation of Basic and Diluted Earnings per Common Share (EPS) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net income	$ 100,038	$ 101,530	$ 100,109	$ 98,453	$ 105,271	$ 102,962	$ 301,677	$ 306,686
Average shares outstanding (in shares)	199,380			202,526			200,300	202,921
Effect of common stock options (in shares)	81			124			130	147
Average diluted shares outstanding (in shares)	199,461			202,650			200,430	203,068
Basic earnings per share (in dollars per share)	$ 0.50			$ 0.49			$ 1.51	$ 1.51
Diluted earnings per share (in dollars per share)	$ 0.50			$ 0.49			$ 1.51	$ 1.51

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Investment Securities - Amortized Cost and Fair Value of Securities Available-for-Sale (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2022
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 3,529,325	$ 3,840,927
Allowance for Credit Losses	(2,195)	(2,525)	$ (2,525)	$ (842)
Net Carrying Amount	3,527,130	3,838,402
Gross Unrealized Gains	5,299	5,718
Gross Unrealized (Losses)	(261,809)	(336,279)
Estimated Fair Value	3,270,620	3,507,841
U.S. government-sponsored enterprises
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	321,233	361,494
Allowance for Credit Losses	0	0
Net Carrying Amount	321,233	361,494
Gross Unrealized Gains	1,800	2,247
Gross Unrealized (Losses)	(11,248)	(17,093)
Estimated Fair Value	311,785	346,648
U.S. government-sponsored mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	1,574,430	1,711,668
Allowance for Credit Losses	0	0
Net Carrying Amount	1,574,430	1,711,668
Gross Unrealized Gains	1,105	310
Gross Unrealized (Losses)	(150,070)	(191,557)
Estimated Fair Value	1,425,465	1,520,421
Private mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	186,916	191,522
Allowance for Credit Losses	0	0
Net Carrying Amount	186,916	191,522
Gross Unrealized Gains	115	0
Gross Unrealized (Losses)	(9,090)	(16,117)
Estimated Fair Value	177,941	175,405
Non-government-sponsored asset backed securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	264,497	370,203
Allowance for Credit Losses	0
Net Carrying Amount	264,497	370,203
Gross Unrealized Gains	646	821
Gross Unrealized (Losses)	(2,945)	(7,551)
Estimated Fair Value	262,198	363,473
State and political subdivisions
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	966,644	990,318
Allowance for Credit Losses	0	0
Net Carrying Amount	966,644	990,318
Gross Unrealized Gains	1,094	1,938
Gross Unrealized (Losses)	(66,804)	(75,931)
Estimated Fair Value	900,934	916,325
Other securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	215,605	215,722
Allowance for Credit Losses	(2,195)	(2,525)
Net Carrying Amount	213,410	213,197
Gross Unrealized Gains	539	402
Gross Unrealized (Losses)	(21,652)	(28,030)
Estimated Fair Value	$ 192,297	$ 185,569

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Investment Securities - Amortized Cost and Fair Value of Securities Held-to-Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2022
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 1,279,095	$ 1,283,987
Allowance for Credit Losses	(2,005)	(2,005)	$ (2,005)	$ (2,005)
Net Carrying Amount	1,277,090	1,281,982
Gross Unrealized Gains	951	562
Gross Unrealized (Losses)	(83,586)	(112,063)
Estimated Fair Value	1,194,455	1,170,481
U.S. government-sponsored enterprises
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	43,490	43,285
Allowance for Credit Losses	0	0
Net Carrying Amount	43,490	43,285
Gross Unrealized Gains	0	0
Gross Unrealized (Losses)	(1,712)	(2,607)
Estimated Fair Value	41,778	40,678
U.S. government-sponsored mortgage-backed securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	125,920	130,278
Allowance for Credit Losses	0	0
Net Carrying Amount	125,920	130,278
Gross Unrealized Gains	754	106
Gross Unrealized (Losses)	(2,288)	(4,362)
Estimated Fair Value	124,386	126,022
State and political subdivisions
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	1,109,685	1,110,424
Allowance for Credit Losses	(2,005)	(2,005)
Net Carrying Amount	1,107,680	1,108,419
Gross Unrealized Gains	197	456
Gross Unrealized (Losses)	(79,586)	(105,094)
Estimated Fair Value	$ 1,028,291	$ 1,003,781

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Investment Securities - Additional Information (Details)	3 Months Ended			9 Months Ended
	Sep. 30, 2024 USD ($) security	Dec. 31, 2023 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) security	Sep. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Schedule of Available-for-sale Securities [Line Items]
Carrying value of investment securities	$ 2,370,000,000	$ 3,570,000,000		$ 2,370,000,000
Investment securities pledged as collateral	179,400,000	142,100,000		179,400,000
Available for sale securities sold	0		$ 0	0	$ 0
Provision for credit loss	(330,000)	0			1,683,000
Allowance for credit loss, held-to-maturity	2,005,000	2,005,000	$ 2,005,000	2,005,000	$ 2,005,000	$ 2,005,000
Debt securities available for sale unrealized loss position	261,809,000	336,279,000		261,809,000
Fair value of unrealized losses	$ 260,071,000	333,485,000		$ 260,071,000
Percentage of Company's investment portfolio				38.60%
Maturity description of investment portfolio				five years or less
Number of investment securities available for sale | security	1,550			1,550
Number of investment in debt securities available-for-sale unrealized loss position | security	1,256			1,256
Number of investment securities held to maturity | security	510			510
Unrealized losses	$ 83,586,000	112,063,000		$ 83,586,000
Number of investments in debt securities held-to-maturity unrealized loss position | security	488			488
U.S. government-sponsored enterprises
Schedule of Available-for-sale Securities [Line Items]
Allowance for credit loss, held-to-maturity	$ 0	0		$ 0
Debt securities available for sale unrealized loss position	11,248,000	17,093,000		11,248,000
Fair value of unrealized losses	$ 11,116,000	17,091,000		$ 11,116,000
Number of investment in debt securities available-for-sale unrealized loss position | security	54			54
Unrealized losses	$ 1,712,000	2,607,000		$ 1,712,000
Number of investments in debt securities held-to-maturity unrealized loss position | security	5			5
U.S. government-sponsored mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Allowance for credit loss, held-to-maturity	$ 0	0		$ 0
Debt securities available for sale unrealized loss position	150,070,000	191,557,000		150,070,000
Fair value of unrealized losses	$ 150,047,000	189,391,000		$ 150,047,000
Number of investment in debt securities available-for-sale unrealized loss position | security	645			645
Unrealized losses	$ 2,288,000	4,362,000		$ 2,288,000
Number of investments in debt securities held-to-maturity unrealized loss position | security	12			12
Private mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Debt securities available for sale unrealized loss position	$ 9,090,000	16,117,000		$ 9,090,000
Fair value of unrealized losses	$ 9,090,000	15,891,000		$ 9,090,000
Number of investment in debt securities available-for-sale unrealized loss position | security	31			31
Non-government-sponsored asset backed securities
Schedule of Available-for-sale Securities [Line Items]
Debt securities available for sale unrealized loss position	$ 2,945,000	7,551,000		$ 2,945,000
Fair value of unrealized losses	$ 2,945,000	7,551,000		$ 2,945,000
Number of investment in debt securities available-for-sale unrealized loss position | security	24			24
State and political subdivisions
Schedule of Available-for-sale Securities [Line Items]
Allowance for credit loss, held-to-maturity	$ 2,005,000	2,005,000		$ 2,005,000
Debt securities available for sale unrealized loss position	66,804,000	75,931,000		66,804,000
Fair value of unrealized losses	$ 66,300,000	75,531,000		$ 66,300,000
Number of investment in debt securities available-for-sale unrealized loss position | security	439			439
Unrealized losses	$ 79,586,000	105,094,000		$ 79,586,000
Number of investments in debt securities held-to-maturity unrealized loss position | security	471			471
Other securities
Schedule of Available-for-sale Securities [Line Items]
Debt securities available for sale unrealized loss position	$ 21,652,000	28,030,000		$ 21,652,000
Fair value of unrealized losses	$ 20,573,000	$ 28,030,000		$ 20,573,000
Number of investment in debt securities available-for-sale unrealized loss position | security	63			63

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Investment Securities - Amortized Cost and Estimated Fair Value of Securities Contractual Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Amortized Cost
Due in one year or less, Amortized Cost	$ 29,837
Due in one year or less, Amortized Cost	0
Due after one year through five years, Amortized Cost	256,357
Due after one year through five years, Amortized Cost	43,548
Due after five years through ten years, Amortized Cost	377,774
Due after five years through ten years, Amortized Cost	341,352
Due after ten years, Amortized Cost	839,514
Due after ten years, Amortized Cost	768,275
Amortized Cost	3,529,325	$ 3,840,927
Amortized Cost	1,279,095	1,283,987
Estimated Fair Value
Due in one year or less, Estimated Fair Value	29,449
Due in one year or less, Estimated Fair Value	0
Due after one year through five years, Estimated Fair Value	245,060
Due after one year through five years, Estimated Fair Value	42,380
Due after five years through ten years, Estimated Fair Value	346,905
Due after five years through ten years, Estimated Fair Value	321,196
Due after ten years, Estimated Fair Value	783,602
Due after ten years, Estimated Fair Value	706,493
Total, Estimated Fair Value	3,270,620	3,507,841
Estimated Fair Value	1,194,455	1,170,481
U.S. government-sponsored mortgage-backed securities
Amortized Cost
Securities not due at a single maturity date, Amortized Cost	1,574,430
Securities not due at a single maturity date, Amortized Cost	125,920
Amortized Cost	1,574,430	1,711,668
Amortized Cost	125,920	130,278
Estimated Fair Value
Securities not due at a single maturity date, Estimated Fair Value	1,425,465
Securities not due at a single maturity date, Estimated Fair Value	124,386
Total, Estimated Fair Value	1,425,465	1,520,421
Estimated Fair Value	124,386	126,022
Private mortgage-backed securities
Amortized Cost
Securities not due at a single maturity date, Amortized Cost	186,916
Securities not due at a single maturity date, Amortized Cost	0
Amortized Cost	186,916	191,522
Estimated Fair Value
Securities not due at a single maturity date, Estimated Fair Value	177,941
Securities not due at a single maturity date, Estimated Fair Value	0
Total, Estimated Fair Value	177,941	175,405
Non-government-sponsored asset backed securities
Amortized Cost
Securities not due at a single maturity date, Amortized Cost	264,497
Securities not due at a single maturity date, Amortized Cost	0
Amortized Cost	264,497	370,203
Estimated Fair Value
Securities not due at a single maturity date, Estimated Fair Value	262,198
Securities not due at a single maturity date, Estimated Fair Value	0
Total, Estimated Fair Value	$ 262,198	$ 363,473

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Investment Securities - Unrealized Losses and Estimated Fair Value of Investment Securities Available for Sale (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Available-for-sale:
Fair Value of Available-for-Sale Securities, Less Than 12 Months	$ 51,060	$ 143,467
Unrealized Losses of Available-for-Sale Securities, Less Than 12 Months	(1,738)	(2,794)
Fair Value of Available-for-Sale Securities, 12 Months or More	2,712,008	2,887,122
Unrealized Losses of Available-for-Sale Securities, 12 Months or More	(260,071)	(333,485)
Fair Value of Available-for-Sale Securities, Total	2,763,068	3,030,589
Unrealized Losses of Available-for-Sale Securities, Total	(261,809)	(336,279)
Held-to-maturity:
Fair Value of Held-to-Maturity Securities, Less Than 12 Months	22,950	69,991
Unrealized Losses of Held-to-Maturity Securities, Less Than 12 Months	(483)	(1,158)
Fair Value of Held-to-Maturity Securities, 12 Months or More	1,108,380	1,062,828
Unrealized Losses of Held-to-Maturity Securities, 12 Months or More	(83,103)	(110,905)
Fair Value of Held-to-Maturity Securities, Total	1,131,330	1,132,819
Unrealized Losses of Held-to-Maturity Securities	(83,586)	(112,063)
U.S. government-sponsored enterprises
Available-for-sale:
Fair Value of Available-for-Sale Securities, Less Than 12 Months	18,911	2,742
Unrealized Losses of Available-for-Sale Securities, Less Than 12 Months	(132)	(2)
Fair Value of Available-for-Sale Securities, 12 Months or More	171,503	180,569
Unrealized Losses of Available-for-Sale Securities, 12 Months or More	(11,116)	(17,091)
Fair Value of Available-for-Sale Securities, Total	190,414	183,311
Unrealized Losses of Available-for-Sale Securities, Total	(11,248)	(17,093)
Held-to-maturity:
Fair Value of Held-to-Maturity Securities, Less Than 12 Months	0	0
Unrealized Losses of Held-to-Maturity Securities, Less Than 12 Months	0	0
Fair Value of Held-to-Maturity Securities, 12 Months or More	41,779	40,677
Unrealized Losses of Held-to-Maturity Securities, 12 Months or More	(1,712)	(2,607)
Fair Value of Held-to-Maturity Securities, Total	41,779	40,677
Unrealized Losses of Held-to-Maturity Securities	(1,712)	(2,607)
U.S. government-sponsored mortgage-backed securities
Available-for-sale:
Fair Value of Available-for-Sale Securities, Less Than 12 Months	2,314	102,831
Unrealized Losses of Available-for-Sale Securities, Less Than 12 Months	(23)	(2,166)
Fair Value of Available-for-Sale Securities, 12 Months or More	1,322,911	1,392,318
Unrealized Losses of Available-for-Sale Securities, 12 Months or More	(150,047)	(189,391)
Fair Value of Available-for-Sale Securities, Total	1,325,225	1,495,149
Unrealized Losses of Available-for-Sale Securities, Total	(150,070)	(191,557)
Held-to-maturity:
Fair Value of Held-to-Maturity Securities, Less Than 12 Months	0	48,498
Unrealized Losses of Held-to-Maturity Securities, Less Than 12 Months	0	(861)
Fair Value of Held-to-Maturity Securities, 12 Months or More	72,591	65,573
Unrealized Losses of Held-to-Maturity Securities, 12 Months or More	(2,288)	(3,501)
Fair Value of Held-to-Maturity Securities, Total	72,591	114,071
Unrealized Losses of Held-to-Maturity Securities	(2,288)	(4,362)
Private mortgage-backed securities
Available-for-sale:
Fair Value of Available-for-Sale Securities, Less Than 12 Months	0	9,298
Unrealized Losses of Available-for-Sale Securities, Less Than 12 Months	0	(226)
Fair Value of Available-for-Sale Securities, 12 Months or More	168,230	166,107
Unrealized Losses of Available-for-Sale Securities, 12 Months or More	(9,090)	(15,891)
Fair Value of Available-for-Sale Securities, Total	168,230	175,405
Unrealized Losses of Available-for-Sale Securities, Total	(9,090)	(16,117)
Non-government-sponsored asset backed securities
Available-for-sale:
Fair Value of Available-for-Sale Securities, Less Than 12 Months	0	0
Unrealized Losses of Available-for-Sale Securities, Less Than 12 Months	0	0
Fair Value of Available-for-Sale Securities, 12 Months or More	106,450	213,838
Unrealized Losses of Available-for-Sale Securities, 12 Months or More	(2,945)	(7,551)
Fair Value of Available-for-Sale Securities, Total	106,450	213,838
Unrealized Losses of Available-for-Sale Securities, Total	(2,945)	(7,551)
State and political subdivisions
Available-for-sale:
Fair Value of Available-for-Sale Securities, Less Than 12 Months	22,859	28,596
Unrealized Losses of Available-for-Sale Securities, Less Than 12 Months	(504)	(400)
Fair Value of Available-for-Sale Securities, 12 Months or More	771,340	769,860
Unrealized Losses of Available-for-Sale Securities, 12 Months or More	(66,300)	(75,531)
Fair Value of Available-for-Sale Securities, Total	794,199	798,456
Unrealized Losses of Available-for-Sale Securities, Total	(66,804)	(75,931)
Held-to-maturity:
Fair Value of Held-to-Maturity Securities, Less Than 12 Months	22,950	21,493
Unrealized Losses of Held-to-Maturity Securities, Less Than 12 Months	(483)	(297)
Fair Value of Held-to-Maturity Securities, 12 Months or More	994,010	956,578
Unrealized Losses of Held-to-Maturity Securities, 12 Months or More	(79,103)	(104,797)
Fair Value of Held-to-Maturity Securities, Total	1,016,960	978,071
Unrealized Losses of Held-to-Maturity Securities	(79,586)	(105,094)
Other securities
Available-for-sale:
Fair Value of Available-for-Sale Securities, Less Than 12 Months	6,976	0
Unrealized Losses of Available-for-Sale Securities, Less Than 12 Months	(1,079)	0
Fair Value of Available-for-Sale Securities, 12 Months or More	171,574	164,430
Unrealized Losses of Available-for-Sale Securities, 12 Months or More	(20,573)	(28,030)
Fair Value of Available-for-Sale Securities, Total	178,550	164,430
Unrealized Losses of Available-for-Sale Securities, Total	$ (21,652)	$ (28,030)

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Investment Securities - Schedule of Allowance for Credit Losses on Investment Securities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Available-for-Sale Investment Securities
Beginning balance		$ 2,525	$ 2,525	$ 842
Provision for credit loss	$ (330)	0		1,683
Ending balance	2,195	2,525	2,195	2,525
Held-to-Maturity Investment Securities
Beginning balance		2,005	2,005	2,005
Provision for credit loss		0	0	0
Ending balance	$ 2,005	$ 2,005	$ 2,005	$ 2,005

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Investment Securities - Bond Ratings (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 1,279,095	$ 1,283,987
Aaa/AAA
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	282,362
Aa/AA
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	845,788
A
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	23,200
Not rated
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	1,825
Agency Backed
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	125,920
State and political subdivisions
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	1,109,685	1,110,424
State and political subdivisions | Aaa/AAA
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	238,872
State and political subdivisions | Aa/AA
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	845,788
State and political subdivisions | A
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	23,200
State and political subdivisions | Not rated
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	1,825
State and political subdivisions | Agency Backed
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0
U.S. government-sponsored enterprises
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	43,490	$ 43,285
U.S. government-sponsored enterprises | Aaa/AAA
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	43,490
U.S. government-sponsored enterprises | Aa/AA
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0
U.S. government-sponsored enterprises | A
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0
U.S. government-sponsored enterprises | Not rated
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0
U.S. government-sponsored enterprises | Agency Backed
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0
U.S. government-sponsored mortgage-backed securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	125,920
U.S. government-sponsored mortgage-backed securities | Aaa/AAA
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0
U.S. government-sponsored mortgage-backed securities | Aa/AA
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0
U.S. government-sponsored mortgage-backed securities | A
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0
U.S. government-sponsored mortgage-backed securities | Not rated
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0
U.S. government-sponsored mortgage-backed securities | Agency Backed
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 125,920

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Investment Securities - Schedule of Income Earned on Available-for Sale Securities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Investment Income [Line Items]
Income earned on securities, taxable	$ 31,006	$ 34,520	$ 96,822	$ 104,559
Income earned on securities, non-taxable	7,704	7,868	23,276	23,763
Total	38,710	42,388	120,098	128,322
Available-for-sale
Investment Income [Line Items]
Income earned on securities, taxable	23,550	27,028	74,439	82,080
Income earned on securities, non-taxable	4,612	4,746	13,971	14,369
Held-to-maturity
Investment Income [Line Items]
Income earned on securities, taxable	7,456	7,492	22,383	22,479
Income earned on securities, non-taxable	$ 3,092	$ 3,122	$ 9,305	$ 9,394

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Loans Receivable - Summary of Various Categories of Loans Receivable (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable	$ 14,823,979		$ 14,424,728
Allowance for credit losses	(312,574)	$ (295,856)	(288,234)	$ (285,562)	$ (285,683)	$ (289,669)
Loans receivable, net	14,511,405		14,136,494
Commercial real estate loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable	8,573,920		8,168,157
Commercial real estate loans | Non-farm/non-residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable	5,496,536		5,549,954
Commercial real estate loans | Construction/land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable	2,741,419		2,293,047
Allowance for credit losses	(63,398)	(58,673)	(33,877)	(32,642)	(32,275)	(32,243)
Commercial real estate loans | Agricultural
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable	335,965		325,156
Residential real estate loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	(59,425)	(51,354)	(55,860)	(54,884)	(51,732)	(50,963)
Residential real estate loans | Residential 1-4 family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable	1,932,352		1,844,260
Residential real estate loans | Multifamily residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable	482,648		435,736
Total real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable	10,988,920		10,448,153
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable	1,219,197		1,153,690
Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable	2,084,667		2,324,991
Allowance for credit losses	(60,603)	$ (69,635)	(92,810)	$ (92,469)	$ (90,474)	$ (89,354)
Agricultural
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable	352,963		307,327
Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable	$ 178,232		$ 190,567

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Loans Receivable - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit loss	$ 312,574	$ 285,562	$ 312,574	$ 285,562	$ 295,856	$ 288,234	$ 285,683	$ 289,669
Deteriorated Credit Quality | Accounting Standards Update 2016-13 | Cumulative Effect Period of Adoption Adjustment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit loss	79,600		79,600			130,700
Mortgage Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Mortgage loans held for sale	92,000		92,000			$ 123,400
SBA Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans sold during period	1,800	1,000	5,100	3,200
Gain on sale of guaranteed portion of loans	$ 145	$ 97	$ 399	$ 236

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Allowance for Credit Losses, Credit Quality and Other - Additional Information (Detail) $ in Thousands	3 Months Ended			9 Months Ended		12 Months Ended
	Sep. 30, 2024 USD ($)	Mar. 31, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) loan	Sep. 30, 2023 USD ($) loan	Dec. 31, 2023 USD ($) loan
Financing Receivable Allowance For Credit Losses [Line Items]
Provision for credit losses on loans	$ 18,200		$ 2,800	$ 31,700	$ 6,300
Recording (recovery) of provision for unfunded commitments of credit losses	1,000	$ 1,000
Provision for unfunded commitments	1,000		(1,500)	0	(1,500)
Non-accrual loans	95,747			95,747		$ 59,971
Loans Past Due Over 90 Days Still Accruing	5,356			5,356		4,130
Nonaccrual loans with specific reserve	46,500			46,500		2,500
Collateral-dependent impaired loans	134,100			134,100		94,900
Interest recognized on impaired loans	1,300		347	3,700	1,000
Amount of loan assessed for impairment on a quarterly basis				2,000
Revolver loans converted to term loans				$ 45,300	$ 32,100
Number of revolving loans convert to term loans | loan				180	182
Premodification balance				$ 1,200	$ 19,400
Number of loans | loan				8	18
Ending balance				$ 1,100
Loans, ending balance			20,800		$ 20,800
Hurricane
Financing Receivable Allowance For Credit Losses [Line Items]
Provision for credit losses on loans				16,700
Borrowers Experiencing Financial Difficulty
Financing Receivable Allowance For Credit Losses [Line Items]
Premodification balance						$ 1,400
Number of loans | loan						11
Loans, ending balance	1,300			1,300
Loan balance, nonaccrual	1,100			1,100
Loans Past Due 30-59 Days | Borrowers Experiencing Financial Difficulty
Financing Receivable Allowance For Credit Losses [Line Items]
Loans, ending balance	92			92
Past Due | Borrowers Experiencing Financial Difficulty
Financing Receivable Allowance For Credit Losses [Line Items]
Loans, ending balance	193			$ 193
Construction / Land Development and Other Commercial Real Estate Loans | Minimum
Financing Receivable Allowance For Credit Losses [Line Items]
Loans collateralized by first liens on real estate amortized period				15 years
Loans collateralized by first liens on real estate balloon payments due period				1 year
Construction / Land Development and Other Commercial Real Estate Loans | Maximum
Financing Receivable Allowance For Credit Losses [Line Items]
Loans collateralized by first liens on real estate amortized period				30 years
Loans collateralized by first liens on real estate balloon payments due period				5 years
Percentage of loan value of improved property				85.00%
Percentage of loan value of raw land				65.00%
Percentage of loan value of land to be acquired and developed				75.00%
Residential real estate loans
Financing Receivable Allowance For Credit Losses [Line Items]
Provision for credit losses on loans	8,059		3,233	$ 3,676
Residential real estate loans | Maximum
Financing Receivable Allowance For Credit Losses [Line Items]
Loan-to-value ratio				90.00%
Commercial and Industrial Loans
Financing Receivable Allowance For Credit Losses [Line Items]
Provision for credit losses on loans	(8,434)		$ 2,059	$ (28,210)
Non-accrual loans	8,511			8,511		$ 9,982
Loans Past Due Over 90 Days Still Accruing	$ 2,405			$ 2,405		$ 1,535
Commercial and Industrial Loans | Minimum
Financing Receivable Allowance For Credit Losses [Line Items]
Commercial loans terms				1 year
Inventory financing percentage	50.00%			50.00%
Commercial and Industrial Loans | Minimum | Loans Past Due 30-59 Days
Financing Receivable Allowance For Credit Losses [Line Items]
Accounts receivable financed percentage	50.00%			50.00%
Commercial and Industrial Loans | Maximum
Financing Receivable Allowance For Credit Losses [Line Items]
Commercial loans terms				7 years
Inventory financing percentage	80.00%			80.00%
Commercial and Industrial Loans | Maximum | Loans Past Due 30-59 Days
Financing Receivable Allowance For Credit Losses [Line Items]
Accounts receivable financed percentage	80.00%			80.00%

XML

Allowance for Credit Losses, Credit Quality and Other - Schedule of Allowance for Credit Losses (Detail) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 295,856	$ 285,562	$ 285,683	$ 288,234	$ 289,669
Loans charged off	(2,001)	(3,592)	(3,449)	(9,077)	(12,463)
Recoveries of loans previously charged off	519	614	528	1,717	2,056
Net loans recovered (charged off)	(1,482)	(2,978)	(2,921)	(7,360)	(10,407)
Provision for credit loss - loans	18,200		2,800	31,700	6,300
Provision for credit loss - loans		5,650			6,300
Ending balance	312,574	288,234	285,562	312,574	285,562
Residential real estate loans
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning balance	51,354	54,884	51,732	55,860	50,963
Loans charged off	(42)	(77)	(103)	(260)	(192)
Recoveries of loans previously charged off	54	168	22	149	161
Net loans recovered (charged off)	12	91	(81)	(111)	(31)
Provision for credit loss - loans	8,059		3,233	3,676
Provision for credit loss - loans		885			3,952
Ending balance	59,425	55,860	54,884	59,425	54,884
Commercial and industrial
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning balance	69,635	92,469	90,474	92,810	89,354
Loans charged off	(741)	(2,142)	(183)	(4,500)	(7,015)
Recoveries of loans previously charged off	143	208	119	503	375
Net loans recovered (charged off)	(598)	(1,934)	(64)	(3,997)	(6,640)
Provision for credit loss - loans	(8,434)		2,059	(28,210)
Provision for credit loss - loans		2,275			9,755
Ending balance	60,603	92,810	92,469	60,603	92,469
Consumer & Other
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning balance	29,352	27,014	26,044	27,052	23,261
Loans charged off	(1,218)	(973)	(1,063)	(3,072)	(3,058)
Recoveries of loans previously charged off	281	212	329	910	900
Net loans recovered (charged off)	(937)	(761)	(734)	(2,162)	(2,158)
Provision for credit loss - loans	4,058		1,704	7,583
Provision for credit loss - loans		799			5,911
Ending balance	32,473	27,052	27,014	32,473	27,014
Construction/land development | Commercial real estate loans
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning balance	58,673	32,642	32,275	33,877	32,243
Loans charged off	0	(88)	(150)	(81)	(175)
Recoveries of loans previously charged off	7	10	33	96	103
Net loans recovered (charged off)	7	(78)	(117)	15	(72)
Provision for credit loss - loans	4,718		484	29,506
Provision for credit loss - loans		1,313			471
Ending balance	63,398	33,877	32,642	63,398	32,642
Other Commercial Real Estate | Commercial real estate loans
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning balance	86,842	78,553	85,158	78,635	93,848
Loans charged off	0	(312)	(1,950)	(1,164)	(2,023)
Recoveries of loans previously charged off	34	16	25	59	517
Net loans recovered (charged off)	34	(296)	(1,925)	(1,105)	(1,506)
Provision for credit loss - loans	9,799		(4,680)	19,145
Provision for credit loss - loans		378			(13,789)
Ending balance	$ 96,675	$ 78,635	$ 78,553	$ 96,675	$ 78,553

XML

Allowance for Credit Losses, Credit Quality and Other - Amortized Cost Basis of Loans on Nonaccrual Status and Loans Past Due Over 90 Days Still Accruing (Detail) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual	$ 95,747	$ 59,971
Nonaccrual with Reserve	46,527	2,534
Loans Past Due Over 90 Days Still Accruing	5,356	4,130
Commercial real estate loans | Non-farm/non-residential
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual	48,086	13,178
Nonaccrual with Reserve	42,025	0
Loans Past Due Over 90 Days Still Accruing	709	2,177
Commercial real estate loans | Construction/land development
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual	5,403	12,094
Nonaccrual with Reserve	0	0
Loans Past Due Over 90 Days Still Accruing	657	255
Commercial real estate loans | Agricultural
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual	737	431
Nonaccrual with Reserve	0	0
Loans Past Due Over 90 Days Still Accruing	0	0
Residential real estate loans | Residential 1-4 family
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual	23,905	20,351
Nonaccrual with Reserve	0	0
Loans Past Due Over 90 Days Still Accruing	1,495	84
Residential real estate loans | Multifamily residential
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual	592
Nonaccrual with Reserve	0
Loans Past Due Over 90 Days Still Accruing	0	0
Total real estate
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual	78,723	46,054
Nonaccrual with Reserve	42,025	0
Loans Past Due Over 90 Days Still Accruing	2,861	2,516
Consumer
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual	7,501	3,423
Nonaccrual with Reserve	2,340	0
Loans Past Due Over 90 Days Still Accruing	28	79
Commercial and industrial
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual	8,511	9,982
Nonaccrual with Reserve	2,162	2,534
Loans Past Due Over 90 Days Still Accruing	2,405	1,535
Agricultural & other
Financing Receivable Nonaccrual Status [Line Items]
Nonaccrual	1,012	512
Nonaccrual with Reserve	0	0
Loans Past Due Over 90 Days Still Accruing	$ 62	$ 0

XML

Allowance for Credit Losses, Credit Quality and Other - Amortized Cost Basis of Collateral-dependent Impaired Loans (Detail) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	$ 134,100	$ 94,900
Commercial Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	61,179	52,594
Residential Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	48,189	21,386
Other
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	24,758	20,913
Commercial real estate loans | Non-farm/non-residential | Commercial Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	54,382	39,813
Commercial real estate loans | Non-farm/non-residential | Residential Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	0	0
Commercial real estate loans | Non-farm/non-residential | Other
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	0	0
Commercial real estate loans | Construction/land development | Commercial Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	6,060	12,350
Commercial real estate loans | Construction/land development | Residential Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	0	0
Commercial real estate loans | Construction/land development | Other
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	0	0
Commercial real estate loans | Agricultural | Commercial Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	737	431
Commercial real estate loans | Agricultural | Residential Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	0	0
Commercial real estate loans | Agricultural | Other
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	0	0
Residential real estate loans | Residential 1-4 family | Commercial Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	0	0
Residential real estate loans | Residential 1-4 family | Residential Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	26,695	21,386
Residential real estate loans | Residential 1-4 family | Other
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	0	0
Residential real estate loans | Multifamily residential | Commercial Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	0	0
Residential real estate loans | Multifamily residential | Residential Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	21,494	0
Residential real estate loans | Multifamily residential | Other
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	0	0
Total real estate | Commercial Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	61,179	52,594
Total real estate | Residential Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	48,189	21,386
Total real estate | Other
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	0	0
Consumer | Commercial Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	0	0
Consumer | Residential Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	0	0
Consumer | Other
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	10,527	3,511
Commercial and industrial | Commercial Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	0	0
Commercial and industrial | Residential Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	0	0
Commercial and industrial | Other
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	13,157	16,890
Agricultural & other | Commercial Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	0	0
Agricultural & other | Residential Real Estate
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	0	0
Agricultural & other | Other
Financing Receivable Allowance For Credit Losses [Line Items]
Amortized cost	$ 1,074	$ 512

XML

Allowance for Credit Losses, Credit Quality and Other - Summary of Aging Analysis for Loans Receivable (Detail) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	$ 14,823,979	$ 14,424,728
Accruing Loans Past Due 90 Days or More	5,356	4,130
Loans Past Due 30-59 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	33,696	18,559
Loans Past Due 60-89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	8,767	5,947
Loans Past Due 90 Days or More
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	101,103	64,101
Total Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	143,566	88,607
Current Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	14,680,413	14,336,121
Commercial real estate loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	8,573,920	8,168,157
Commercial real estate loans | Non-farm/non-residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	5,496,536	5,549,954
Accruing Loans Past Due 90 Days or More	709	2,177
Commercial real estate loans | Non-farm/non-residential | Loans Past Due 30-59 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	4,391	8,124
Commercial real estate loans | Non-farm/non-residential | Loans Past Due 60-89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	837	416
Commercial real estate loans | Non-farm/non-residential | Loans Past Due 90 Days or More
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	48,795	15,355
Commercial real estate loans | Non-farm/non-residential | Total Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	54,023	23,895
Commercial real estate loans | Non-farm/non-residential | Current Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	5,442,513	5,526,059
Commercial real estate loans | Construction/land development
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	2,741,419	2,293,047
Accruing Loans Past Due 90 Days or More	657	255
Commercial real estate loans | Construction/land development | Loans Past Due 30-59 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	778	1,430
Commercial real estate loans | Construction/land development | Loans Past Due 60-89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	221	0
Commercial real estate loans | Construction/land development | Loans Past Due 90 Days or More
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	6,060	12,349
Commercial real estate loans | Construction/land development | Total Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	7,059	13,779
Commercial real estate loans | Construction/land development | Current Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	2,734,360	2,279,268
Commercial real estate loans | Agricultural
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	335,965	325,156
Accruing Loans Past Due 90 Days or More	0	0
Commercial real estate loans | Agricultural | Loans Past Due 30-59 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	177	474
Commercial real estate loans | Agricultural | Loans Past Due 60-89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	198	314
Commercial real estate loans | Agricultural | Loans Past Due 90 Days or More
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	737	431
Commercial real estate loans | Agricultural | Total Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	1,112	1,219
Commercial real estate loans | Agricultural | Current Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	334,853	323,937
Residential real estate loans | Residential 1-4 family
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	1,932,352	1,844,260
Accruing Loans Past Due 90 Days or More	1,495	84
Residential real estate loans | Residential 1-4 family | Loans Past Due 30-59 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	2,329	4,346
Residential real estate loans | Residential 1-4 family | Loans Past Due 60-89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	6,698	1,423
Residential real estate loans | Residential 1-4 family | Loans Past Due 90 Days or More
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	25,400	20,435
Residential real estate loans | Residential 1-4 family | Total Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	34,427	26,204
Residential real estate loans | Residential 1-4 family | Current Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	1,897,925	1,818,056
Residential real estate loans | Multifamily residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	482,648	435,736
Accruing Loans Past Due 90 Days or More	0	0
Residential real estate loans | Multifamily residential | Loans Past Due 30-59 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	20,902	0
Residential real estate loans | Multifamily residential | Loans Past Due 60-89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	0	0
Residential real estate loans | Multifamily residential | Loans Past Due 90 Days or More
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	592	0
Residential real estate loans | Multifamily residential | Total Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	21,494	0
Residential real estate loans | Multifamily residential | Current Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	461,154	435,736
Total real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	10,988,920	10,448,153
Accruing Loans Past Due 90 Days or More	2,861	2,516
Total real estate | Loans Past Due 30-59 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	28,577	14,374
Total real estate | Loans Past Due 60-89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	7,954	2,153
Total real estate | Loans Past Due 90 Days or More
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	81,584	48,570
Total real estate | Total Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	118,115	65,097
Total real estate | Current Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	10,870,805	10,383,056
Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	1,219,197	1,153,690
Accruing Loans Past Due 90 Days or More	28	79
Consumer | Loans Past Due 30-59 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	2,928	1,022
Consumer | Loans Past Due 60-89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	155	303
Consumer | Loans Past Due 90 Days or More
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	7,529	3,502
Consumer | Total Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	10,612	4,827
Consumer | Current Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	1,208,585	1,148,863
Commercial and industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	2,084,667	2,324,991
Accruing Loans Past Due 90 Days or More	2,405	1,535
Commercial and industrial | Loans Past Due 30-59 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	1,071	2,089
Commercial and industrial | Loans Past Due 60-89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	567	3,378
Commercial and industrial | Loans Past Due 90 Days or More
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	10,916	11,517
Commercial and industrial | Total Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	12,554	16,984
Commercial and industrial | Current Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	2,072,113	2,308,007
Agricultural & other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	531,195	497,894
Accruing Loans Past Due 90 Days or More	62	0
Agricultural & other | Loans Past Due 30-59 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	1,120	1,074
Agricultural & other | Loans Past Due 60-89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	91	113
Agricultural & other | Loans Past Due 90 Days or More
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	1,074	512
Agricultural & other | Total Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	2,285	1,699
Agricultural & other | Current Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	$ 528,910	$ 496,195

XML

Allowance for Credit Losses, Credit Quality and Other - Summary of Most Recent Analysis Performed, Risk Category of Loans by Class of Loans and Writeoffs (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	$ 1,557,221	$ 2,138,730
Year Two	2,239,000	3,341,500
Year Three	3,248,020	2,083,044
Year Four	1,679,539	1,132,926
Year Five	923,973	872,429
Prior	3,245,462	2,908,528
Revolving Loans Amortized Cost Basis	1,930,764	1,947,571
Total	14,823,979	14,424,728
Writeoffs, Year One	2,206	3,252
Writeoffs, Year Two	715	490
Writeoffs, Year Three	264	1,351
Writeoffs, Year Four	1,161	1,072
Writeoffs, Year Five	277	2,878
Writeoffs, Prior	1,199	6,357
Writeoffs, Revolving	3,255	655
Writeoffs, Total	9,077	16,055
Commercial real estate loans
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	935,554	930,022
Year Two	1,127,650	2,146,390
Year Three	2,023,558	1,262,133
Year Four	1,041,573	626,807
Year Five	486,086	481,164
Prior	2,071,625	1,905,250
Revolving Loans Amortized Cost Basis	887,874	816,391
Total	8,573,920	8,168,157
Commercial real estate loans | Non-farm/non-residential
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	218,451	388,831
Year Two	481,457	1,150,598
Year Three	1,068,460	830,588
Year Four	836,245	491,298
Year Five	401,616	404,822
Prior	1,910,085	1,747,135
Revolving Loans Amortized Cost Basis	580,222	536,682
Total	5,496,536	5,549,954
Writeoffs, Year One	0	0
Writeoffs, Year Two	0	0
Writeoffs, Year Three	0	0
Writeoffs, Year Four	780	0
Writeoffs, Year Five	1	1,826
Writeoffs, Prior	383	502
Writeoffs, Revolving	0	0
Writeoffs, Total	1,164	2,328
Commercial real estate loans | Construction/land development
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	667,797	501,215
Year Two	601,615	926,208
Year Three	894,340	384,657
Year Four	166,388	88,901
Year Five	51,652	55,857
Prior	88,489	81,216
Revolving Loans Amortized Cost Basis	271,138	254,993
Total	2,741,419	2,293,047
Writeoffs, Year One	0	0
Writeoffs, Year Two	0	2
Writeoffs, Year Three	0	168
Writeoffs, Year Four	48	5
Writeoffs, Year Five	33	0
Writeoffs, Prior	0	88
Writeoffs, Revolving	0	0
Writeoffs, Total	81	263
Commercial real estate loans | Agricultural
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	49,306	39,976
Year Two	44,578	69,584
Year Three	60,758	46,888
Year Four	38,940	46,608
Year Five	32,818	20,485
Prior	73,051	76,899
Revolving Loans Amortized Cost Basis	36,514	24,716
Total	335,965	325,156
Writeoffs, Year One	0	0
Writeoffs, Year Two	0	0
Writeoffs, Year Three	0	0
Writeoffs, Year Four	0	0
Writeoffs, Year Five	0	1
Writeoffs, Prior	0	6
Writeoffs, Revolving	0	0
Writeoffs, Total	0	7
Residential real estate loans | Residential 1-4 family
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	187,704	261,784
Year Two	256,902	409,197
Year Three	422,537	300,563
Year Four	261,251	171,122
Year Five	156,691	111,327
Prior	449,644	403,729
Revolving Loans Amortized Cost Basis	197,623	186,538
Total	1,932,352	1,844,260
Writeoffs, Year One	0	0
Writeoffs, Year Two	1	29
Writeoffs, Year Three	100	28
Writeoffs, Year Four	1	73
Writeoffs, Year Five	26	13
Writeoffs, Prior	132	126
Writeoffs, Revolving	0	0
Writeoffs, Total	260	269
Residential real estate loans | Multifamily residential
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	1,876	3,983
Year Two	11,822	87,012
Year Three	185,829	107,301
Year Four	47,043	108,702
Year Five	111,781	39,815
Prior	97,878	74,564
Revolving Loans Amortized Cost Basis	26,419	14,359
Total	482,648	435,736
Total real estate
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	1,125,134	1,195,789
Year Two	1,396,374	2,642,599
Year Three	2,631,924	1,669,997
Year Four	1,349,867	906,631
Year Five	754,558	632,306
Prior	2,619,147	2,383,543
Revolving Loans Amortized Cost Basis	1,111,916	1,017,288
Total	10,988,920	10,448,153
Writeoffs, Year One	0	0
Writeoffs, Year Two	1	31
Writeoffs, Year Three	100	196
Writeoffs, Year Four	829	78
Writeoffs, Year Five	60	1,840
Writeoffs, Prior	515	722
Writeoffs, Revolving	0	0
Writeoffs, Total	1,505	2,867
Consumer
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	219,061	255,930
Year Two	226,131	257,588
Year Three	228,528	216,645
Year Four	184,366	109,981
Year Five	92,448	110,406
Prior	265,784	200,071
Revolving Loans Amortized Cost Basis	2,879	3,069
Total	1,219,197	1,153,690
Writeoffs, Year One	4	0
Writeoffs, Year Two	86	51
Writeoffs, Year Three	75	44
Writeoffs, Year Four	40	98
Writeoffs, Year Five	109	63
Writeoffs, Prior	485	263
Writeoffs, Revolving	0	25
Writeoffs, Total	799	544
Commercial and industrial
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	133,512	619,371
Year Two	559,408	385,376
Year Three	339,418	156,919
Year Four	110,948	88,094
Year Five	51,754	114,522
Prior	311,045	276,677
Revolving Loans Amortized Cost Basis	578,582	684,032
Total	2,084,667	2,324,991
Writeoffs, Year One	0	0
Writeoffs, Year Two	557	407
Writeoffs, Year Three	89	1,110
Writeoffs, Year Four	292	894
Writeoffs, Year Five	108	911
Writeoffs, Prior	199	5,369
Writeoffs, Revolving	3,255	466
Writeoffs, Total	4,500	9,157
Agricultural & other
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	79,514	67,640
Year Two	57,087	55,937
Year Three	48,150	39,483
Year Four	34,358	28,220
Year Five	25,213	15,195
Prior	49,486	48,237
Revolving Loans Amortized Cost Basis	237,387	243,182
Total	531,195	497,894
Writeoffs, Year One	2,202	3,252
Writeoffs, Year Two	71	1
Writeoffs, Year Three	0	1
Writeoffs, Year Four	0	2
Writeoffs, Year Five	0	64
Writeoffs, Prior	0	3
Writeoffs, Revolving	0	164
Writeoffs, Total	2,273	3,487
Risk rating 1 | Commercial real estate loans | Non-farm/non-residential
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	0
Year Two	0	0
Year Three	0	0
Year Four	0	0
Year Five	0	232
Prior	331	116
Revolving Loans Amortized Cost Basis	74	55
Total	405	403
Risk rating 1 | Commercial real estate loans | Construction/land development
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	0
Year Two	0	0
Year Three	0	10
Year Four	10	0
Year Five	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Total	10	10
Risk rating 1 | Commercial real estate loans | Agricultural
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	700	0
Year Two	0	1,605
Year Three	1,462	0
Year Four	0	0
Year Five	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Total	2,162	1,605
Risk rating 1 | Residential real estate loans | Residential 1-4 family
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	0
Year Two	0	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	92	144
Revolving Loans Amortized Cost Basis	2	2
Total	94	146
Risk rating 1 | Residential real estate loans | Multifamily residential
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	0
Year Two	0	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Total	0	0
Risk rating 1 | Total real estate
Financing Receivable Allowance For Credit Losses [Line Items]
Year One		1,195,789
Year Two		2,642,599
Year Three		1,669,997
Year Four		906,631
Year Five		632,306
Prior		2,383,543
Revolving Loans Amortized Cost Basis		1,017,288
Total		10,448,153
Risk rating 1 | Consumer
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	4,480	5,195
Year Two	2,582	2,952
Year Three	1,667	2,002
Year Four	1,291	839
Year Five	642	355
Prior	1,064	1,114
Revolving Loans Amortized Cost Basis	1,506	1,580
Total	13,232	14,037
Risk rating 1 | Commercial and industrial
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	3,402	3,757
Year Two	1,207	918
Year Three	793	1,120
Year Four	651	236
Year Five	219	121
Prior	21,338	20,835
Revolving Loans Amortized Cost Basis	10,740	12,644
Total	38,350	39,631
Risk rating 1 | Agricultural & other
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	643	408
Year Two	378	131
Year Three	222	16
Year Four	16	105
Year Five	105	0
Prior	0	2
Revolving Loans Amortized Cost Basis	782	563
Total	2,146	1,225
Risk rating 2 | Commercial real estate loans | Non-farm/non-residential
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	0
Year Two	0	0
Year Three	0	0
Year Four	0	0
Year Five	0	111
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Total	0	111
Risk rating 2 | Commercial real estate loans | Construction/land development
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	759
Year Two	136	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	165	186
Revolving Loans Amortized Cost Basis	37	0
Total	338	945
Risk rating 2 | Commercial real estate loans | Agricultural
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	278	247
Year Two	241	0
Year Three	0	1,936
Year Four	1,853	0
Year Five	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Total	2,372	2,183
Risk rating 2 | Residential real estate loans | Residential 1-4 family
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	259
Year Two	230	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	11	20
Revolving Loans Amortized Cost Basis	5	1
Total	246	280
Risk rating 2 | Residential real estate loans | Multifamily residential
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	0
Year Two	0	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Total	0	0
Risk rating 2 | Consumer
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	0
Year Two	0	0
Year Three	0	0
Year Four	0	0
Year Five	0	126
Prior	150	54
Revolving Loans Amortized Cost Basis	0	0
Total	150	180
Risk rating 2 | Commercial and industrial
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	48	174
Year Two	132	1,293
Year Three	1,074	220
Year Four	185	12
Year Five	5	164
Prior	19	218
Revolving Loans Amortized Cost Basis	2,142	963
Total	3,605	3,044
Risk rating 2 | Agricultural & other
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	537	396
Year Two	304	28
Year Three	28	1
Year Four	0	0
Year Five	0	1,181
Prior	0	100
Revolving Loans Amortized Cost Basis	2,447	693
Total	3,316	2,399
Risk rating 3 | Commercial real estate loans | Non-farm/non-residential
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	163,941	305,742
Year Two	312,252	584,860
Year Three	601,970	568,413
Year Four	562,043	243,177
Year Five	230,931	216,746
Prior	1,021,405	934,111
Revolving Loans Amortized Cost Basis	256,875	440,414
Total	3,149,417	3,293,463
Risk rating 3 | Commercial real estate loans | Construction/land development
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	535,815	300,941
Year Two	411,289	499,984
Year Three	424,306	130,342
Year Four	84,734	62,134
Year Five	41,633	22,656
Prior	62,671	56,180
Revolving Loans Amortized Cost Basis	65,049	44,603
Total	1,625,497	1,116,840
Risk rating 3 | Commercial real estate loans | Agricultural
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	35,210	30,252
Year Two	34,159	43,291
Year Three	32,111	22,919
Year Four	15,598	25,992
Year Five	21,231	10,678
Prior	44,924	43,284
Revolving Loans Amortized Cost Basis	31,107	20,104
Total	214,340	196,520
Risk rating 3 | Residential real estate loans | Residential 1-4 family
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	181,112	246,462
Year Two	232,086	366,149
Year Three	368,096	241,985
Year Four	232,800	145,339
Year Five	131,378	93,751
Prior	361,150	324,569
Revolving Loans Amortized Cost Basis	114,114	122,950
Total	1,620,736	1,541,205
Risk rating 3 | Residential real estate loans | Multifamily residential
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	1,876	3,314
Year Two	11,133	9,827
Year Three	34,052	37,755
Year Four	36,223	44,407
Year Five	52,758	31,436
Prior	76,818	53,068
Revolving Loans Amortized Cost Basis	11,449	6,537
Total	224,309	186,344
Risk rating 3 | Consumer
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	210,168	240,897
Year Two	213,187	245,543
Year Three	217,177	211,312
Year Four	181,131	108,009
Year Five	90,901	108,063
Prior	252,855	191,220
Revolving Loans Amortized Cost Basis	1,124	1,264
Total	1,166,543	1,106,308
Risk rating 3 | Commercial and industrial
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	72,780	487,896
Year Two	511,791	272,608
Year Three	239,265	78,507
Year Four	62,304	50,340
Year Five	42,767	77,761
Prior	210,038	170,610
Revolving Loans Amortized Cost Basis	205,363	227,043
Total	1,344,308	1,364,765
Risk rating 3 | Agricultural & other
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	45,944	52,758
Year Two	51,932	45,796
Year Three	39,142	31,378
Year Four	27,332	26,918
Year Five	24,600	3,059
Prior	32,955	43,984
Revolving Loans Amortized Cost Basis	106,271	145,419
Total	328,176	349,312
Risk rating 4 | Commercial real estate loans | Non-farm/non-residential
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	54,483	83,089
Year Two	169,205	557,540
Year Three	457,070	242,217
Year Four	268,482	224,378
Year Five	145,758	149,258
Prior	665,513	590,864
Revolving Loans Amortized Cost Basis	322,795	95,360
Total	2,083,306	1,942,706
Risk rating 4 | Commercial real estate loans | Construction/land development
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	131,982	198,874
Year Two	189,494	417,244
Year Three	466,044	252,602
Year Four	79,663	22,713
Year Five	9,720	32,342
Prior	24,720	24,527
Revolving Loans Amortized Cost Basis	205,071	209,063
Total	1,106,694	1,157,365
Risk rating 4 | Commercial real estate loans | Agricultural
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	13,118	9,477
Year Two	10,178	24,688
Year Three	27,185	20,358
Year Four	19,868	19,532
Year Five	10,503	7,873
Prior	26,221	32,692
Revolving Loans Amortized Cost Basis	5,214	4,612
Total	112,287	119,232
Risk rating 4 | Residential real estate loans | Residential 1-4 family
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	6,592	14,992
Year Two	22,038	37,444
Year Three	44,936	55,406
Year Four	24,590	21,240
Year Five	20,640	13,313
Prior	72,339	67,084
Revolving Loans Amortized Cost Basis	82,201	62,356
Total	273,336	271,835
Risk rating 4 | Residential real estate loans | Multifamily residential
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	669
Year Two	689	77,185
Year Three	130,725	69,546
Year Four	10,228	64,295
Year Five	59,023	8,116
Prior	20,830	18,490
Revolving Loans Amortized Cost Basis	14,970	7,822
Total	236,465	246,123
Risk rating 4 | Consumer
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	4,342	9,597
Year Two	4,633	7,534
Year Three	5,151	2,479
Year Four	1,381	69
Year Five	166	109
Prior	5,688	6,073
Revolving Loans Amortized Cost Basis	184	214
Total	21,545	26,075
Risk rating 4 | Commercial and industrial
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	57,244	115,025
Year Two	34,109	34,474
Year Three	29,322	55,812
Year Four	29,917	33,000
Year Five	8,695	27,189
Prior	66,115	71,854
Revolving Loans Amortized Cost Basis	308,873	378,417
Total	534,275	715,771
Risk rating 4 | Agricultural & other
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	30,475	14,007
Year Two	4,469	7,663
Year Three	8,446	8,025
Year Four	6,964	955
Year Five	388	10,955
Prior	15,305	3,188
Revolving Loans Amortized Cost Basis	127,762	94,186
Total	193,809	138,979
Risk rating 5 | Commercial real estate loans | Non-farm/non-residential
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	27	0
Year Two	0	0
Year Three	1,265	10,000
Year Four	0	0
Year Five	960	14,095
Prior	26,353	42,694
Revolving Loans Amortized Cost Basis	383	758
Total	28,988	67,547
Risk rating 5 | Commercial real estate loans | Construction/land development
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	641
Year Two	623	1,163
Year Three	1,431	0
Year Four	0	3,306
Year Five	0	218
Prior	0	69
Revolving Loans Amortized Cost Basis	0	0
Total	2,054	5,397
Risk rating 5 | Commercial real estate loans | Agricultural
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	0
Year Two	0	0
Year Three	0	0
Year Four	0	0
Year Five	0	314
Prior	571	571
Revolving Loans Amortized Cost Basis	0	0
Total	571	885
Risk rating 5 | Residential real estate loans | Residential 1-4 family
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	0
Year Two	1,015	243
Year Three	601	246
Year Four	293	479
Year Five	397	831
Prior	1,073	1,343
Revolving Loans Amortized Cost Basis	778	40
Total	4,157	3,182
Risk rating 5 | Residential real estate loans | Multifamily residential
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	0
Year Two	0	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	0	3,006
Revolving Loans Amortized Cost Basis	0	0
Total	0	3,006
Risk rating 5 | Consumer
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	22
Year Two	433	0
Year Three	0	22
Year Four	214	483
Year Five	156	872
Prior	83	261
Revolving Loans Amortized Cost Basis	0	0
Total	886	1,660
Risk rating 5 | Commercial and industrial
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	21
Year Two	86	547
Year Three	485	16,318
Year Four	4,526	3,352
Year Five	33	201
Prior	0	980
Revolving Loans Amortized Cost Basis	1,305	1,767
Total	6,435	23,186
Risk rating 5 | Agricultural & other
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	1,915	0
Year Two	0	2,286
Year Three	312	0
Year Four	0	134
Year Five	61	0
Prior	543	593
Revolving Loans Amortized Cost Basis	5	665
Total	2,836	3,678
Risk rating 6 | Commercial real estate loans | Non-farm/non-residential
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	0
Year Two	0	8,198
Year Three	8,155	9,958
Year Four	5,720	23,743
Year Five	23,967	24,380
Prior	196,483	179,350
Revolving Loans Amortized Cost Basis	95	95
Total	234,420	245,724
Risk rating 6 | Commercial real estate loans | Construction/land development
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	0
Year Two	73	7,817
Year Three	2,559	1,631
Year Four	1,909	748
Year Five	299	641
Prior	933	254
Revolving Loans Amortized Cost Basis	981	1,327
Total	6,754	12,418
Risk rating 6 | Commercial real estate loans | Agricultural
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	0
Year Two	0	0
Year Three	0	1,675
Year Four	1,621	1,084
Year Five	1,084	1,620
Prior	1,335	352
Revolving Loans Amortized Cost Basis	193	0
Total	4,233	4,731
Risk rating 6 | Residential real estate loans | Residential 1-4 family
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	71
Year Two	1,533	5,361
Year Three	8,904	2,926
Year Four	3,568	4,064
Year Five	4,276	3,432
Prior	14,977	10,567
Revolving Loans Amortized Cost Basis	523	1,189
Total	33,781	27,610
Risk rating 6 | Residential real estate loans | Multifamily residential
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	0
Year Two	0	0
Year Three	21,052	0
Year Four	592	0
Year Five	0	263
Prior	230	0
Revolving Loans Amortized Cost Basis	0	0
Total	21,874	263
Risk rating 6 | Consumer
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	71	204
Year Two	5,287	1,559
Year Three	4,533	830
Year Four	343	581
Year Five	583	881
Prior	5,944	1,349
Revolving Loans Amortized Cost Basis	65	11
Total	16,826	5,415
Risk rating 6 | Commercial and industrial
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	38	12,498
Year Two	12,082	75,536
Year Three	68,479	4,942
Year Four	13,365	1,154
Year Five	34	9,086
Prior	13,526	12,180
Revolving Loans Amortized Cost Basis	50,159	63,198
Total	157,683	178,594
Risk rating 6 | Agricultural & other
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	71
Year Two	4	33
Year Three	0	63
Year Four	46	108
Year Five	59	0
Prior	683	370
Revolving Loans Amortized Cost Basis	120	1,656
Total	912	2,301
Risk rating 7 | Commercial real estate loans | Non-farm/non-residential
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	0
Year Two	0	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Total	0	0
Risk rating 7 | Commercial real estate loans | Construction/land development
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	0
Year Two	0	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Total	0	0
Risk rating 7 | Commercial real estate loans | Agricultural
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	0
Year Two	0	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Total	0	0
Risk rating 7 | Residential real estate loans | Residential 1-4 family
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	0
Year Two	0	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Total	0	0
Risk rating 7 | Residential real estate loans | Multifamily residential
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	0
Year Two	0	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Total	0	0
Risk rating 7 | Consumer
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	15
Year Two	9	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Total	9	15
Risk rating 7 | Commercial and industrial
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	0
Year Two	0	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Total	0	0
Risk rating 7 | Agricultural & other
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	0
Year Two	0	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Total	0	0
Risk rating 8 | Commercial real estate loans | Non-farm/non-residential
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	0
Year Two	0	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Total	0	0
Risk rating 8 | Commercial real estate loans | Construction/land development
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	0
Year Two	0	0
Year Three	0	72
Year Four	72	0
Year Five	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Total	72	72
Risk rating 8 | Commercial real estate loans | Agricultural
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	0
Year Two	0	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Total	0	0
Risk rating 8 | Residential real estate loans | Residential 1-4 family
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	0
Year Two	0	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	2	2
Revolving Loans Amortized Cost Basis	0	0
Total	2	2
Risk rating 8 | Residential real estate loans | Multifamily residential
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	0
Year Two	0	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Total	0	0
Risk rating 8 | Consumer
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	0
Year Two	0	0
Year Three	0	0
Year Four	6	0
Year Five	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Total	6	0
Risk rating 8 | Commercial and industrial
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	0
Year Two	1	0
Year Three	0	0
Year Four	0	0
Year Five	1	0
Prior	9	0
Revolving Loans Amortized Cost Basis	0	0
Total	11	0
Risk rating 8 | Agricultural & other
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	0
Year Two	0	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Total	$ 0	$ 0

XML

Allowance for Credit Losses, Credit Quality and Other - Summary of Amortized Cost of Performing and Nonperforming Loans (Detail) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	$ 1,557,221	$ 2,138,730
Year Two	2,239,000	3,341,500
Year Three	3,248,020	2,083,044
Year Four	1,679,539	1,132,926
Year Five	923,973	872,429
Prior	3,245,462	2,908,528
Revolving Loans Amortized Cost Basis	1,930,764	1,947,571
Total	14,823,979	14,424,728
Commercial real estate loans
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	935,554	930,022
Year Two	1,127,650	2,146,390
Year Three	2,023,558	1,262,133
Year Four	1,041,573	626,807
Year Five	486,086	481,164
Prior	2,071,625	1,905,250
Revolving Loans Amortized Cost Basis	887,874	816,391
Total	8,573,920	8,168,157
Commercial real estate loans | Non-farm/non-residential
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	218,451	388,831
Year Two	481,457	1,150,598
Year Three	1,068,460	830,588
Year Four	836,245	491,298
Year Five	401,616	404,822
Prior	1,910,085	1,747,135
Revolving Loans Amortized Cost Basis	580,222	536,682
Total	5,496,536	5,549,954
Commercial real estate loans | Non-farm/non-residential | Performing
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	218,451	388,831
Year Two	481,457	1,150,598
Year Three	1,068,305	821,373
Year Four	835,292	490,153
Year Five	387,389	404,061
Prior	1,871,118	1,718,776
Revolving Loans Amortized Cost Basis	580,142	536,349
Total	5,442,154	5,510,141
Commercial real estate loans | Non-farm/non-residential | Non-performing
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	0
Year Two	0	0
Year Three	155	9,215
Year Four	953	1,145
Year Five	14,227	761
Prior	38,967	28,359
Revolving Loans Amortized Cost Basis	80	333
Total	54,382	39,813
Commercial real estate loans | Construction/land development
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	667,797	501,215
Year Two	601,615	926,208
Year Three	894,340	384,657
Year Four	166,388	88,901
Year Five	51,652	55,857
Prior	88,489	81,216
Revolving Loans Amortized Cost Basis	271,138	254,993
Total	2,741,419	2,293,047
Commercial real estate loans | Construction/land development | Performing
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	667,797	501,215
Year Two	601,542	918,390
Year Three	891,810	382,954
Year Four	164,990	88,204
Year Five	51,470	55,239
Prior	87,594	81,028
Revolving Loans Amortized Cost Basis	270,156	253,667
Total	2,735,359	2,280,697
Commercial real estate loans | Construction/land development | Non-performing
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	0
Year Two	73	7,818
Year Three	2,530	1,703
Year Four	1,398	697
Year Five	182	618
Prior	895	188
Revolving Loans Amortized Cost Basis	982	1,326
Total	6,060	12,350
Commercial real estate loans | Agricultural
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	49,306	39,976
Year Two	44,578	69,584
Year Three	60,758	46,888
Year Four	38,940	46,608
Year Five	32,818	20,485
Prior	73,051	76,899
Revolving Loans Amortized Cost Basis	36,514	24,716
Total	335,965	325,156
Commercial real estate loans | Agricultural | Performing
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	49,306	39,976
Year Two	44,578	69,584
Year Three	60,758	46,809
Year Four	38,875	46,608
Year Five	32,818	20,485
Prior	72,572	76,547
Revolving Loans Amortized Cost Basis	36,321	24,716
Total	335,228	324,725
Commercial real estate loans | Agricultural | Non-performing
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	0
Year Two	0	0
Year Three	0	79
Year Four	65	0
Year Five	0	0
Prior	479	352
Revolving Loans Amortized Cost Basis	193	0
Total	737	431
Residential real estate loans | Residential 1-4 family
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	187,704	261,784
Year Two	256,902	409,197
Year Three	422,537	300,563
Year Four	261,251	171,122
Year Five	156,691	111,327
Prior	449,644	403,729
Revolving Loans Amortized Cost Basis	197,623	186,538
Total	1,932,352	1,844,260
Residential real estate loans | Residential 1-4 family | Performing
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	187,704	261,784
Year Two	255,185	405,239
Year Three	416,753	298,207
Year Four	257,574	167,475
Year Five	153,384	108,091
Prior	437,827	396,130
Revolving Loans Amortized Cost Basis	197,230	185,948
Total	1,905,657	1,822,874
Residential real estate loans | Residential 1-4 family | Non-performing
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	0
Year Two	1,717	3,958
Year Three	5,784	2,356
Year Four	3,677	3,647
Year Five	3,307	3,236
Prior	11,817	7,599
Revolving Loans Amortized Cost Basis	393	590
Total	26,695	21,386
Residential real estate loans | Multifamily residential
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	1,876	3,983
Year Two	11,822	87,012
Year Three	185,829	107,301
Year Four	47,043	108,702
Year Five	111,781	39,815
Prior	97,878	74,564
Revolving Loans Amortized Cost Basis	26,419	14,359
Total	482,648	435,736
Residential real estate loans | Multifamily residential | Performing
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	1,876	3,983
Year Two	11,822	87,012
Year Three	164,927	107,301
Year Four	46,451	108,702
Year Five	111,781	39,815
Prior	97,878	74,564
Revolving Loans Amortized Cost Basis	26,419	14,359
Total	461,154	435,736
Residential real estate loans | Multifamily residential | Non-performing
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	0
Year Two	0	0
Year Three	20,902	0
Year Four	592	0
Year Five	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Total	21,494	0
Total real estate
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	1,125,134	1,195,789
Year Two	1,396,374	2,642,599
Year Three	2,631,924	1,669,997
Year Four	1,349,867	906,631
Year Five	754,558	632,306
Prior	2,619,147	2,383,543
Revolving Loans Amortized Cost Basis	1,111,916	1,017,288
Total	10,988,920	10,448,153
Consumer
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	219,061	255,930
Year Two	226,131	257,588
Year Three	228,528	216,645
Year Four	184,366	109,981
Year Five	92,448	110,406
Prior	265,784	200,071
Revolving Loans Amortized Cost Basis	2,879	3,069
Total	1,219,197	1,153,690
Consumer | Performing
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	218,988	255,771
Year Two	225,480	256,826
Year Three	225,577	215,831
Year Four	184,063	109,442
Year Five	91,893	110,267
Prior	259,861	198,982
Revolving Loans Amortized Cost Basis	2,808	3,060
Total	1,208,670	1,150,179
Consumer | Non-performing
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	73	159
Year Two	651	762
Year Three	2,951	814
Year Four	303	539
Year Five	555	139
Prior	5,923	1,089
Revolving Loans Amortized Cost Basis	71	9
Total	10,527	3,511
Commercial and industrial
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	133,512	619,371
Year Two	559,408	385,376
Year Three	339,418	156,919
Year Four	110,948	88,094
Year Five	51,754	114,522
Prior	311,045	276,677
Revolving Loans Amortized Cost Basis	578,582	684,032
Total	2,084,667	2,324,991
Commercial and industrial | Performing
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	133,512	616,809
Year Two	556,469	382,190
Year Three	336,274	156,056
Year Four	109,586	87,531
Year Five	51,740	111,529
Prior	306,000	273,434
Revolving Loans Amortized Cost Basis	577,929	680,552
Total	2,071,510	2,308,101
Commercial and industrial | Non-performing
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	2,562
Year Two	2,939	3,186
Year Three	3,144	863
Year Four	1,362	563
Year Five	14	2,993
Prior	5,045	3,243
Revolving Loans Amortized Cost Basis	653	3,480
Total	13,157	16,890
Agricultural & other
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	79,514	67,640
Year Two	57,087	55,937
Year Three	48,150	39,483
Year Four	34,358	28,220
Year Five	25,213	15,195
Prior	49,486	48,237
Revolving Loans Amortized Cost Basis	237,387	243,182
Total	531,195	497,894
Agricultural & other | Performing
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	79,514	67,569
Year Two	57,083	55,904
Year Three	48,150	39,473
Year Four	34,312	28,220
Year Five	25,209	15,195
Prior	48,579	48,203
Revolving Loans Amortized Cost Basis	237,274	242,818
Total	530,121	497,382
Agricultural & other | Non-performing
Financing Receivable Allowance For Credit Losses [Line Items]
Year One	0	71
Year Two	4	33
Year Three	0	10
Year Four	46	0
Year Five	4	0
Prior	907	34
Revolving Loans Amortized Cost Basis	113	364
Total	$ 1,074	$ 512

XML

Allowance for Credit Losses, Credit Quality and Other - Presentation of Troubled Debt Restructurings ("TDRs") by Class (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	$ 24,243	$ 24,610
Percentage of Total Class of Loans Receivable	0.16%	0.17%
Term Extension
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	$ 3,764	$ 3,225
Interest Rate Reduction
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	951	636
Principal Reduction
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	103	149
Interest Only
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	2,409	3,518
Interest Rate Reduction and Term Extension
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	1,022	938
Principal Reduction and Interest Rate Reduction
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	3	5
Term Extension and Interest Only
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	15,874	16,023
Term Extension and Principal Reduction
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	117	116
Commercial real estate loans | Non-farm/non-residential
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	$ 17,912	$ 18,306
Percentage of Total Class of Loans Receivable	0.33%	0.33%
Commercial real estate loans | Non-farm/non-residential | Term Extension
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	$ 389	$ 398
Commercial real estate loans | Non-farm/non-residential | Interest Rate Reduction
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	0	0
Commercial real estate loans | Non-farm/non-residential | Principal Reduction
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	0	0
Commercial real estate loans | Non-farm/non-residential | Interest Only
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	1,307	1,537
Commercial real estate loans | Non-farm/non-residential | Interest Rate Reduction and Term Extension
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	342	348
Commercial real estate loans | Non-farm/non-residential | Principal Reduction and Interest Rate Reduction
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	0	0
Commercial real estate loans | Non-farm/non-residential | Term Extension and Interest Only
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	15,874	16,023
Commercial real estate loans | Non-farm/non-residential | Term Extension and Principal Reduction
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	0	0
Commercial real estate loans | Construction/land development
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	$ 78	$ 149
Percentage of Total Class of Loans Receivable	0.00%	0.01%
Commercial real estate loans | Construction/land development | Term Extension
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	$ 0	$ 0
Commercial real estate loans | Construction/land development | Interest Rate Reduction
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	0	0
Commercial real estate loans | Construction/land development | Principal Reduction
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	0	0
Commercial real estate loans | Construction/land development | Interest Only
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	78	149
Commercial real estate loans | Construction/land development | Interest Rate Reduction and Term Extension
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	0	0
Commercial real estate loans | Construction/land development | Principal Reduction and Interest Rate Reduction
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	0	0
Commercial real estate loans | Construction/land development | Term Extension and Interest Only
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	0	0
Commercial real estate loans | Construction/land development | Term Extension and Principal Reduction
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	0	0
Residential real estate loans | Residential 1-4 family
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	$ 2,861	$ 1,955
Percentage of Total Class of Loans Receivable	0.15%	0.11%
Residential real estate loans | Residential 1-4 family | Term Extension
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	$ 1,061	$ 560
Residential real estate loans | Residential 1-4 family | Interest Rate Reduction
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	951	598
Residential real estate loans | Residential 1-4 family | Principal Reduction
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	103	106
Residential real estate loans | Residential 1-4 family | Interest Only
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	23	59
Residential real estate loans | Residential 1-4 family | Interest Rate Reduction and Term Extension
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	606	516
Residential real estate loans | Residential 1-4 family | Principal Reduction and Interest Rate Reduction
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	0	0
Residential real estate loans | Residential 1-4 family | Term Extension and Interest Only
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	0	0
Residential real estate loans | Residential 1-4 family | Term Extension and Principal Reduction
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	117	116
Total real estate
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	$ 20,851	$ 20,410
Percentage of Total Class of Loans Receivable	0.19%	0.20%
Total real estate | Term Extension
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	$ 1,450	$ 958
Total real estate | Interest Rate Reduction
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	951	598
Total real estate | Principal Reduction
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	103	106
Total real estate | Interest Only
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	1,408	1,745
Total real estate | Interest Rate Reduction and Term Extension
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	948	864
Total real estate | Principal Reduction and Interest Rate Reduction
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	0	0
Total real estate | Term Extension and Interest Only
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	15,874	16,023
Total real estate | Term Extension and Principal Reduction
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	117	116
Consumer
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	$ 18	$ 30
Percentage of Total Class of Loans Receivable	0.00%	0.00%
Consumer | Term Extension
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	$ 6	$ 14
Consumer | Interest Rate Reduction
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	0	0
Consumer | Principal Reduction
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	0	1
Consumer | Interest Only
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	9	10
Consumer | Interest Rate Reduction and Term Extension
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	0	0
Consumer | Principal Reduction and Interest Rate Reduction
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	3	5
Consumer | Term Extension and Interest Only
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	0	0
Consumer | Term Extension and Principal Reduction
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	0	0
Commercial and industrial
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	$ 3,374	$ 4,170
Percentage of Total Class of Loans Receivable	0.16%	0.18%
Commercial and industrial | Term Extension
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	$ 2,308	$ 2,253
Commercial and industrial | Interest Rate Reduction
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	0	38
Commercial and industrial | Principal Reduction
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	0	42
Commercial and industrial | Interest Only
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	992	1,763
Commercial and industrial | Interest Rate Reduction and Term Extension
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	74	74
Commercial and industrial | Principal Reduction and Interest Rate Reduction
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	0	0
Commercial and industrial | Term Extension and Interest Only
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	0	0
Commercial and industrial | Term Extension and Principal Reduction
Financing Receivable, Modifications [Line Items]
Post- Modification Outstanding Balance	$ 0	$ 0

XML

Allowance for Credit Losses, Credit Quality and Other - Presentation of TDR's on Non-Accrual Status (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($)
Term Extension
Financing Receivable, Modifications [Line Items]
Payment default loans	$ 391
Interest Rate Reduction
Financing Receivable, Modifications [Line Items]
Payment default loans	511
Combination Interest Rate Reduction and Term Extension
Financing Receivable, Modifications [Line Items]
Payment default loans	238
Commercial real estate loans | Non-farm/non-residential | Term Extension
Financing Receivable, Modifications [Line Items]
Payment default loans	0
Commercial real estate loans | Non-farm/non-residential | Interest Rate Reduction
Financing Receivable, Modifications [Line Items]
Payment default loans	0
Commercial real estate loans | Non-farm/non-residential | Combination Interest Rate Reduction and Term Extension
Financing Receivable, Modifications [Line Items]
Payment default loans	0
Residential real estate loans | Residential 1-4 family | Term Extension
Financing Receivable, Modifications [Line Items]
Payment default loans	385
Residential real estate loans | Residential 1-4 family | Interest Rate Reduction
Financing Receivable, Modifications [Line Items]
Payment default loans	511
Residential real estate loans | Residential 1-4 family | Combination Interest Rate Reduction and Term Extension
Financing Receivable, Modifications [Line Items]
Payment default loans	238
Total real estate | Term Extension
Financing Receivable, Modifications [Line Items]
Payment default loans	385
Total real estate | Interest Rate Reduction
Financing Receivable, Modifications [Line Items]
Payment default loans	511
Total real estate | Combination Interest Rate Reduction and Term Extension
Financing Receivable, Modifications [Line Items]
Payment default loans	238
Consumer | Term Extension
Financing Receivable, Modifications [Line Items]
Payment default loans	6
Consumer | Interest Rate Reduction
Financing Receivable, Modifications [Line Items]
Payment default loans	0
Consumer | Combination Interest Rate Reduction and Term Extension
Financing Receivable, Modifications [Line Items]
Payment default loans	0
Commercial and industrial | Term Extension
Financing Receivable, Modifications [Line Items]
Payment default loans	0
Commercial and industrial | Interest Rate Reduction
Financing Receivable, Modifications [Line Items]
Payment default loans	0
Commercial and industrial | Combination Interest Rate Reduction and Term Extension
Financing Receivable, Modifications [Line Items]
Payment default loans	$ 0

XML

Allowance for Credit Losses, Credit Quality and Other - Summary of Total Foreclosed Assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Commercial real estate loans | Non-farm/non-residential
Schedule Of Foreclosed Assets Activity [Line Items]
Total foreclosed assets held for sale	$ 29,824	$ 29,894
Commercial real estate loans | Construction/land development
Schedule Of Foreclosed Assets Activity [Line Items]
Total foreclosed assets held for sale	12,919	47
Residential real estate loans | Residential 1-4 family
Schedule Of Foreclosed Assets Activity [Line Items]
Total foreclosed assets held for sale	297	545
Total real estate
Schedule Of Foreclosed Assets Activity [Line Items]
Total foreclosed assets held for sale	$ 43,040	$ 30,486

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Goodwill and Core Deposits and Other Intangibles - Summary of Changes in Carrying Amount and Accumulated Amortization of Company's Goodwill and Core Deposits and Other Intangibles (Detail) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Goodwill
Balance, beginning of period				$ 1,398,253	$ 1,398,253
Balance, end of period	$ 1,398,253	$ 1,398,253		1,398,253
Core Deposit Intangibles
Balance, beginning of period		51,023		48,770	58,455
Amortization expense	(2,095)	(2,253)	$ (2,477)	(6,375)	(7,432)
Balance, end of year	$ 42,395	$ 48,770	$ 51,023	$ 42,395	$ 51,023

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Goodwill and Core Deposits and Other Intangibles - Summary of Carrying Amount and Accumulated Amortization of Core Deposits and Other Intangibles (Detail) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Gross carrying basis	$ 128,888	$ 128,888
Accumulated amortization	(86,493)	(80,118)
Net carrying amount	$ 42,395	$ 48,770	$ 51,023	$ 58,455

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Goodwill and Core Deposits and Other Intangibles - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Core deposit and other intangible amortization	$ 2,095	$ 2,253	$ 2,477	$ 6,375	$ 7,432
Amortization expense for this year	8,400			8,400
Amortization expense for year 1	8,000			8,000
Amortization expense for year 2	7,800			7,800
Amortization expense for year 3	6,600			6,600
Amortization expense for year 4	4,200			4,200
Carrying amount of Company's goodwill	$ 1,398,253	$ 1,398,253		$ 1,398,253		$ 1,398,253

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Other Assets - Additional Information (Detail) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Schedule Of Other Assets [Line Items]
Other assets	$ 352,583	$ 323,573
Federal Home Loan Bank ("FHLB") and Federal Reserve Bank ("Federal Reserve")
Schedule Of Other Assets [Line Items]
Fair value of equity securities	133,300	133,400
First National Bankers' Bank and Other Miscellaneous Holdings
Schedule Of Other Assets [Line Items]
Fair value of equity securities	$ 93,300	$ 90,300

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Deposits - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Deposits [Line Items]
Time deposits with a minimum denomination of $250,000	$ 923,900		$ 923,900		$ 836,700
Time deposits with a minimum denomination of $100,000	1,200,000		1,200,000		1,090,000
Interest expense applicable to certificate	12,700	$ 7,500	36,500	$ 15,700
Brokered deposits	421,300		421,300		401,000
Total deposits	16,705,710		16,705,710		16,787,711
State and political subdivisions
Deposits [Line Items]
Total deposits	$ 2,840,000		$ 2,840,000		$ 3,050,000

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Securities Sold Under Agreements to Repurchase - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Securities Sold under Agreements to Repurchase [Abstract]
Securities sold under agreements to repurchase	$ 179,416		$ 179,416		$ 142,085
Securities sold under agreements to repurchase daily weighted average	$ 157,200	$ 154,700	$ 163,000	$ 144,600

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Securities Sold Under Agreements to Repurchase - Summary of Remaining Contractual Maturity of Securities Sold Under Agreements to Repurchase (Detail) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	$ 179,416	$ 142,085
U.S. government-sponsored enterprises
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	9,964	0
Mortgage-backed securities
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	51,314	0
State and political subdivisions
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	21,808	0
Other securities
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	96,330	142,085
Overnight and Continuous
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	179,416	142,085
Overnight and Continuous | U.S. government-sponsored enterprises
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	9,964	0
Overnight and Continuous | Mortgage-backed securities
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	51,314	0
Overnight and Continuous | State and political subdivisions
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	21,808	0
Overnight and Continuous | Other securities
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	$ 96,330	$ 142,085

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FHLB and Other Borrowed Funds (Detail) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Borrowed Funds [Line Items]
FHLB borrowed funds	$ 600.0	$ 600.0
Other borrowings	700.8	701.3
Line of credit	1,240.0	1,330.0
Bank Term Funding Program
Borrowed Funds [Line Items]
Funds drawn	700.0	700.0
Federal Home Loan Bank Advances
Borrowed Funds [Line Items]
FHLB borrowed funds	$ 600.0	$ 600.0
Minimum
Borrowed Funds [Line Items]
FHLB interest rate	3.37%
Maximum
Borrowed Funds [Line Items]
FHLB interest rate	4.84%

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Subordinated Debentures - Preferred Trust Securities and Subordinated Debt Securities (Detail) - USD ($) $ in Thousands		9 Months Ended
	Jan. 18, 2022	Sep. 30, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Total		$ 439,394	$ 439,834
Subordinated notes, net of issuance costs, issued in 2020, due 2030, fixed rate of 5.50% during the first five years and at a floating rate of 534.5 basis points above the then three-month SOFR rate, reset quarterly, thereafter, callable in 2025 without penalty | Subordinated debt securities
Debt Instrument [Line Items]
Total		$ 141,096	142,084
Fixed rate		5.50%
Subordinated notes, net of issuance costs, issued in 2020, due 2030, fixed rate of 5.50% during the first five years and at a floating rate of 534.5 basis points above the then three-month SOFR rate, reset quarterly, thereafter, callable in 2025 without penalty | Subordinated debt securities | Variable Rate Component One
Debt Instrument [Line Items]
Floating rate		5.345%
Subordinated notes, net of issuance costs, issued in 2022, due 2032, fixed rate of 3.125% during the first five years and at a floating rate of 182 basis points above the then three-month SOFR rate, reset quarterly, thereafter, callable in 2027 without penalty | Variable Rate Component One
Debt Instrument [Line Items]
Floating rate	1.82%
Subordinated notes, net of issuance costs, issued in 2022, due 2032, fixed rate of 3.125% during the first five years and at a floating rate of 182 basis points above the then three-month SOFR rate, reset quarterly, thereafter, callable in 2027 without penalty | Subordinated debt securities
Debt Instrument [Line Items]
Total		$ 298,298	$ 297,750
Fixed rate		3.125%
Subordinated notes, net of issuance costs, issued in 2022, due 2032, fixed rate of 3.125% during the first five years and at a floating rate of 182 basis points above the then three-month SOFR rate, reset quarterly, thereafter, callable in 2027 without penalty | Subordinated debt securities | Variable Rate Component One
Debt Instrument [Line Items]
Floating rate		1.82%

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Subordinated Debentures - Additional Information (Detail) - USD ($) $ in Millions		9 Months Ended
	Jan. 18, 2022	Sep. 30, 2024	Apr. 01, 2022
3.125% Fixed to Floating Rate Subordinated Notes due 2032
Debt Instrument [Line Items]
Percentage of redemption price on principal		100.00%
Trust preferred securities, face amount	$ 300.0
Subordinated notes, Interest rate	3.125%
Proceeds from issuance of subordinated debentures	$ 296.4
3.125% Fixed to Floating Rate Subordinated Notes due 2032 | Variable Rate Component One
Debt Instrument [Line Items]
Floating rate	1.82%
Subordinated debt securities | Happy Bancshares, Inc.
Debt Instrument [Line Items]
Debt acquired		$ 144.4	$ 140.0
Fixed rate			5.50%
Subordinated debt securities | Happy Bancshares, Inc. | Variable Rate Component One
Debt Instrument [Line Items]
Floating rate		5.345%
Subordinated debt securities | 3.125% Fixed to Floating Rate Subordinated Notes due 2032
Debt Instrument [Line Items]
Fixed rate		3.125%
Subordinated debt securities | 3.125% Fixed to Floating Rate Subordinated Notes due 2032 | Variable Rate Component One
Debt Instrument [Line Items]
Floating rate		1.82%
Subordinated notes, net of issuance costs, issued in 2020, due 2030, fixed rate of 5.50% during the first five years and at a floating rate of 534.5 basis points above the then three-month SOFR rate, reset quarterly, thereafter, callable in 2025 without penalty
Debt Instrument [Line Items]
Percentage of redemption price on principal		100.00%

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Income Taxes - Summary of Components of Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Current:
Federal	$ 26,586	$ 23,861	$ 75,213	$ 76,059
State	5,412	4,858	15,312	15,484
Total current	31,998	28,719	90,525	91,543
Deferred:
Federal	(2,453)	1,758	570	715
State	(499)	358	116	146
Total deferred	(2,952)	2,116	686	861
Income tax expense	$ 29,046	$ 30,835	$ 91,211	$ 92,404

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Income Taxes - Reconciliation between Statutory Federal Income Tax Rate and Effective Income Tax Rate (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Statutory federal income tax rate	21.00%	21.00%	21.00%	21.00%
Effect of non-taxable interest income	(1.28%)	(0.64%)	(0.98%)	(0.71%)
Stock compensation	0.58%	0.29%	0.57%	0.29%
State income taxes, net of federal benefit	2.45%	2.73%	2.57%	2.64%
Executive officer compensation & other	(0.25%)	0.47%	0.06%	(0.07%)
Effective income tax rate	22.50%	23.85%	23.22%	23.15%

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Income Taxes - Differences Between Tax Basis of Assets and Liabilities (Detail) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Deferred tax assets:
Allowance for credit losses	$ 86,628	$ 81,251
Deferred compensation	6,448	7,619
Stock compensation	5,344	6,803
Non-accrual interest income	1,786	1,463
Real estate owned	70	79
Unrealized loss on investment securities, available-for-sale	62,211	81,493
Loan discounts	3,689	5,119
Investments	23,580	25,789
Other	19,084	14,691
Gross deferred tax assets	208,840	224,307
Deferred tax liabilities:
Accelerated depreciation on premises and equipment	0	1,477
Tax basis on acquisitions	6,691	4,061
Core deposit intangibles	9,610	11,021
FHLB dividends	2,835	2,351
Other	13,075	8,233
Gross deferred tax liabilities	32,211	27,143
Net deferred tax assets	$ 176,629	$ 197,164

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Common Stock, Compensation Plans and Other - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended						9 Months Ended	12 Months Ended	32 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, shares authorized (in shares)	300,000,000						300,000,000	300,000,000	300,000,000
Common stock, par value (in dollars per share)	$ 0.01						$ 0.01	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,500,000						5,500,000		5,500,000
Preferred stock, par value (in dollars per share)	$ 0.01						$ 0.01		$ 0.01
Number of shares repurchased during period	1,000,000	1,400,094	1,025,934	260,000	560,849	590,000	3,426,028
Weighted average stock price (in dollars per share)							$ 24.36
Repurchase of combining of all the shares									26,411,743
Remaining balance available for repurchase (in shares)	13,340,257						13,340,257		13,340,257
Shares of common stock reserved for issuance	3,863,313						3,863,313		3,863,313
Intrinsic value of stock options outstanding	$ 8.4						$ 8.4		$ 8.4
Intrinsic value of stock options vested	6.2						6.2		6.2
Intrinsic value of stock options exercised							6.8
Unrecognized compensation cost net of income tax benefit, related to non-vested awards	$ 1.7						$ 1.7		$ 1.7
Options granted (in shares)							0	25,000
2022 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares available for grants under the plan (in shares)	14,788,000						14,788,000		14,788,000
Remaining shares of common stock available for future grants	2,072,278						2,072,278		2,072,278
Restricted Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost net of income tax benefit, related to non-vested stock option awards	$ 16.5						$ 16.5		$ 16.5

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Common Stock, Compensation Plans and Other - Summary of Stock Option Transactions under Plan (Detail) - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Shares
Outstanding, beginning of year (in shares)	2,776,000	2,971,000
Granted (in shares)	0	25,000
Forfeited/Expired (in shares)	(33,000)	(10,000)
Exercised (in shares)	(952,000)	(210,000)
Outstanding, end of year (in shares)	1,791,000	2,776,000
Exercisable, end of year (in shares)	1,253,000	1,940,000
Weighted- Average Exercisable Price
Outstanding, beginning of year (in dollars per share)	$ 20.95	$ 20.45
Granted (in dollars per share)	0	22.63
Forfeited/Expired (in dollars per share)	21.87	23.38
Exercised (in dollars per share)	18.13	14.01
Outstanding, ending of year (in dollars per share)	22.43	20.95
Exercisable Weighted Average Exercisable Price, end of year (in dollars per share)	$ 22.11	$ 20.05

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Common Stock, Compensation Plans and Other - Summary of Stock Options on Valuation Assumptions (Detail)	12 Months Ended
	Dec. 31, 2023
Equity [Abstract]
Expected dividend yield	2.98%
Expected stock price volatility	27.97%
Risk-free interest rate	3.37%
Expected life of options	6 years 6 months

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Common Stock, Compensation Plans and Other - Summary of Currently Outstanding and Exercisable Options (Detail) shares in Thousands	9 Months Ended
	Sep. 30, 2024 $ / shares shares
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Options Outstanding Shares | shares	1,791
Options Exercisable Shares | shares	1,253
$16.00 to $17.99
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Exercise Prices, Lower Range Limit (in dollars per share)	$ 16.00
Exercise Prices, Upper Range Limit (in dollars per share)	$ 17.99
Options Outstanding Shares | shares	40
Weighted- Average Remaining Contractual Life (in years)	6 months 14 days
Options outstanding Weighted- Average Exercise Price (in dollars per share)	$ 17.12
Options Exercisable Shares | shares	40
Options Exercisable Weighted- Average Exercise Price (in dollars per share)	$ 17.12
$18.00 to $19.99
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Exercise Prices, Lower Range Limit (in dollars per share)	18.00
Exercise Prices, Upper Range Limit (in dollars per share)	$ 19.99
Options Outstanding Shares | shares	188
Weighted- Average Remaining Contractual Life (in years)	1 year 3 months 25 days
Options outstanding Weighted- Average Exercise Price (in dollars per share)	$ 18.53
Options Exercisable Shares | shares	188
Options Exercisable Weighted- Average Exercise Price (in dollars per share)	$ 18.53
$20.00 to $21.99
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Exercise Prices, Lower Range Limit (in dollars per share)	20.00
Exercise Prices, Upper Range Limit (in dollars per share)	$ 21.99
Options Outstanding Shares | shares	220
Weighted- Average Remaining Contractual Life (in years)	3 years 8 months 23 days
Options outstanding Weighted- Average Exercise Price (in dollars per share)	$ 20.88
Options Exercisable Shares | shares	186
Options Exercisable Weighted- Average Exercise Price (in dollars per share)	$ 20.92
$22.00 to $23.99
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Exercise Prices, Lower Range Limit (in dollars per share)	22.00
Exercise Prices, Upper Range Limit (in dollars per share)	$ 23.99
Options Outstanding Shares | shares	1,253
Weighted- Average Remaining Contractual Life (in years)	3 years 10 months 24 days
Options outstanding Weighted- Average Exercise Price (in dollars per share)	$ 23.22
Options Exercisable Shares | shares	767
Options Exercisable Weighted- Average Exercise Price (in dollars per share)	$ 23.19
$24.00 to $25.99
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items]
Exercise Prices, Lower Range Limit (in dollars per share)	24.00
Exercise Prices, Upper Range Limit (in dollars per share)	$ 25.99
Options Outstanding Shares | shares	90
Weighted- Average Remaining Contractual Life (in years)	3 years 7 months 24 days
Options outstanding Weighted- Average Exercise Price (in dollars per share)	$ 25.59
Options Exercisable Shares | shares	72
Options Exercisable Weighted- Average Exercise Price (in dollars per share)	$ 25.93

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Common Stock, Compensation Plans and Other - Summary of Company's Restricted Stock Issued and Outstanding (Detail) - USD ($) shares in Thousands, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Beginning of year (in shares)	1,429	1,381
Issued (in shares)	516	261
Vested (in shares)	(461)	(152)
Forfeited (in shares)	(59)	(61)
End of year (in shares)	1,425	1,429
Amount of expense for nine months and twelve months ended, respectively (in shares)	$ 5,963	$ 8,016

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Non-Interest Expense - Components of Non-Interest Expense (Detail) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Noninterest Expense [Abstract]
Salaries and employee benefits	$ 58,861		$ 64,512	$ 180,198	$ 193,536
Occupancy and equipment	14,546		15,463	43,505	45,338
Data processing expense	9,088		9,103	27,170	27,222
Other operating expenses:
Advertising	1,810		2,295	5,156	6,624
Amortization of intangibles	2,095	$ 2,253	2,477	6,375	7,432
Electronic banking expense	3,569		3,709	10,137	10,714
Directors’ fees	362		417	1,283	1,415
Due from bank service charges	302		282	860	841
FDIC and state assessment	3,360		2,794	12,172	9,514
Insurance	926		878	2,734	2,694
Legal and accounting	1,902		1,514	6,600	4,038
Other professional fees	2,062		2,117	6,406	7,175
Operating supplies	673		860	1,969	2,361
Postage	522		491	1,542	1,578
Telephone	455		544	1,369	1,645
Other expense	9,512		7,306	27,250	23,561
Total other operating expenses	27,550		25,684	83,853	79,592
Total non-interest expense	$ 110,045		$ 114,762	$ 334,726	$ 345,688

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Leases - Additional Information (Detail) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2024 USD ($) property relatedParty	Sep. 30, 2024 USD ($) property relatedParty	Dec. 31, 2023 USD ($)
Leases [Abstract]
Right of use asset	$ 43,000	$ 43,000	$ 42,200
Lease liability	$ 45,848	$ 45,848	$ 45,028
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Bank premises and equipment, net	Bank premises and equipment, net	Bank premises and equipment, net
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Accrued interest payable and other liabilities	Accrued interest payable and other liabilities	Accrued interest payable and other liabilities
Number of lease properties | property	2	2
Number of related parties | relatedParty	2	2
Lease rent expense	$ 35	$ 97
Lease expense rate	1.37%	1.25%

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Leases - Minimum Rental Commitment under Operating Leases (Detail) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Leases [Abstract]
Remainder of fiscal year	$ 2,678
Year 1	10,201	$ 9,373
Year 2	9,468	8,549
Year 3	8,144	8,111
Year 4	6,368	7,223
Thereafter	22,053
Year 5		5,496
Thereafter		19,827
Total future minimum lease payments	58,912	58,579
Discount effect of cash flows	(13,064)	(13,551)
Present value of net future minimum lease payments	$ 45,848	$ 45,028

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Leases - Additional Information of Lease Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Lease expense:
Operating lease expense	$ 2,266	$ 2,059	$ 6,901	$ 5,937
Short-term lease expense	0	0	0	0
Variable lease expense	302	289	895	810
Total lease expense	2,568	2,348	7,796	6,747
Other information:
Cash paid for amounts included in the measurement of lease liabilities	$ 1,972	$ 2,136	$ 6,802	$ 6,146
Weighted-average remaining lease term (in years)	7 years 7 months 20 days	8 years 3 months 29 days	7 years 9 months	8 years 7 months 13 days
Weighted-average discount rate	3.52%	3.43%	3.46%	3.44%

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Significant Estimates and Concentrations of Credit Risks - Additional Information (Detail)	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Loans Receivable | Geographic Concentration | South Alabama, Arkansas, Florida and New York City
Commitment And Contingencies [Line Items]
Concentration percentage	79.60%
Loans Receivable | Commercial Real Estate | Credit Concentration
Commitment And Contingencies [Line Items]
Concentration percentage	57.80%	56.70%
Loans Receivable | Residential Real Estate | Credit Concentration
Commitment And Contingencies [Line Items]
Concentration percentage	16.30%	15.80%
Total Stockholders' Equity | Commercial Real Estate | Credit Concentration
Commitment And Contingencies [Line Items]
Concentration percentage	216.50%	215.50%
Total Stockholders' Equity | Residential Real Estate | Credit Concentration
Commitment And Contingencies [Line Items]
Concentration percentage	61.00%	60.10%
Residential Real Estate Loans | Geographic Concentration | South Alabama, Arkansas, Florida and New York City
Commitment And Contingencies [Line Items]
Concentration percentage	83.50%

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Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments to extend credit outstanding	$ 4,530.0	$ 4,590.0
Maximum amount of future payments by the company	$ 154.4	$ 185.5

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Regulatory Matters (Detail) $ in Millions		9 Months Ended
	Mar. 27, 2020	Sep. 30, 2024 USD ($)
Regulatory Matters [Line Items]
Percentage of retained earnings plus current year earnings to be paid as maximum dividend		75.00%
Requested dividend by the company from its subsidiary		$ 232.4
Basel III | Criteria 1
Regulatory Matters [Line Items]
Tier 1 risk-based capital ratio		0.045
Tier 1 leverage capital ratio		0.04
Risk-based capital ratio		0.06
Risk-based capital ratio		0.08
Basel III | Criteria 2
Regulatory Matters [Line Items]
Risk-based capital ratio		0.1828
Common equity Tier 1 risk-based capital ratio		0.065
Tier 1 leverage capital ratio		0.05
Tier 1 risk-based capital ratio		0.08
Total risk-based capital ratio		0.10
Common equity Tier 1 risk-based capital ratio		0.1465
Tier 1 leverage capital ratio		0.1254
Tier 1 risk-based capital ratio		0.1465
CECL | COVID -19
Regulatory Matters [Line Items]
Allowable percentage of bank holding companies impact	100.00%
Percentage of allowance for credit losses	25.00%

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Additional Cash Flow Information - Summary of Additional Cash Flow Information (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Supplemental Cash Flow Elements [Abstract]
Interest paid	$ 324,658	$ 241,466
Income taxes paid	80,075	106,619
Assets acquired by foreclosure	$ 11,734	$ 383

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Financial Instruments - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying value of foreclosed assets held for sale	$ 0		$ 0
Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of loans with specific allocated losses	74,300,000		74,300,000		$ 10,500,000
Accrued interest receivable reversed	470,000	$ 1,300,000	956,000	$ 1,900,000
Fair value of foreclosed assets held for sale	$ 43,000,000.0		$ 43,000,000.0		$ 30,500,000

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Financial Instruments - Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities - available-for-sale	$ 3,270,620	$ 3,507,841
Investment securities - held-to-maturity	1,194,455	1,170,481
Fair Value, Inputs, Level 1 | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	1,017,677	1,000,213
Federal funds sold	6,425	5,100
Accrued interest receivable	118,871	118,966
Marketable equity securities	51,540	49,419
Demand and non-interest bearing	3,937,168	4,085,501
Savings and interest-bearing transaction accounts	10,966,426	11,050,347
Securities sold under agreements to repurchase	179,416	142,085
Accrued interest payable	39,897	19,124
Fair Value, Inputs, Level 1 | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	1,017,677	1,000,213
Federal funds sold	6,425	5,100
Accrued interest receivable	118,871	118,966
Marketable equity securities	51,540	49,419
Demand and non-interest bearing	3,937,168	4,085,501
Savings and interest-bearing transaction accounts	10,966,426	11,050,347
Securities sold under agreements to repurchase	179,416	142,085
Accrued interest payable	39,897	19,124
Fair Value, Inputs, Level 2 | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities - available-for-sale	3,270,620	3,507,841
Investment securities - held-to-maturity	1,277,090	1,281,982
FHLB and other borrowed funds	1,300,750	1,301,300
Fair Value, Inputs, Level 2 | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities - available-for-sale	3,270,620	3,507,841
Investment securities - held-to-maturity	1,194,455	1,170,481
FHLB and other borrowed funds	1,277,447	1,291,926
Fair Value, Inputs, Level 3 | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans receivable, net of impaired loans and allowance	14,397,652	14,048,002
FHLB, FRB & FNBB Bank stock; other equity investments	226,631	223,748
Time deposits	1,802,116	1,651,863
Subordinated debentures	439,394	439,834
Fair Value, Inputs, Level 3 | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans receivable, net of impaired loans and allowance	14,489,849	14,071,775
FHLB, FRB & FNBB Bank stock; other equity investments	226,631	223,748
Time deposits	1,792,949	1,633,091
Subordinated debentures	$ 388,048	$ 358,682