# ENTERPRISE FINANCIAL SERVICES CORP (EFSC) Informational only - not investment advice. CIK: 0001025835 SIC: 6022 State Commercial Banks SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [Depository Institutions](/major-group/60/) > [SIC 6022 State Commercial Banks](/industry/6022/) Latest 10-K filed: 2026-02-27 SEC page: https://www.sec.gov/edgar/browse/?CIK=1025835 Filing source: https://www.sec.gov/Archives/edgar/data/1025835/000102583526000058/efsc-20251231.htm ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 888410000 | USD | 2025 | 2026-02-27 | | Net income | 201374000 | USD | 2025 | 2026-02-27 | | Assets | 17300884000 | USD | 2025 | 2026-02-27 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-27. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001025835.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | 149,224,000 | 202,539,000 | 237,802,000 | 305,134,000 | 304,779,000 | 383,230,000 | 515,082,000 | 764,919,000 | 851,051,000 | 888,410,000 | | Net income | 48,837,000 | 48,190,000 | 89,217,000 | 92,739,000 | 74,384,000 | 133,055,000 | 203,043,000 | 194,059,000 | 185,266,000 | 201,374,000 | | Diluted EPS | 2.41 | 2.07 | 3.83 | 3.55 | 2.76 | 3.86 | 5.31 | 5.07 | 4.83 | 5.31 | | Operating cash flow | 82,521,000 | 45,791,000 | 108,808,000 | 92,457,000 | 135,514,000 | 160,575,000 | 216,640,000 | 268,238,000 | 247,400,000 | 193,515,000 | | Capital expenditures | 2,496,000 | 2,546,000 | 3,035,000 | 6,337,000 | 2,259,000 | 2,500,000 | 1,930,000 | 6,556,000 | 7,475,000 | 11,985,000 | | Dividends paid | 8,211,000 | 10,249,000 | 10,845,000 | 16,568,000 | 19,795,000 | 26,153,000 | 33,602,000 | 37,368,000 | 39,550,000 | 45,093,000 | | Share buybacks | 4,889,000 | 16,636,000 | 19,387,000 | 15,526,000 | 15,347,000 | 60,589,000 | 32,923,000 | 0.00 | 29,641,000 | 14,145,000 | | Assets | 4,081,328,000 | 5,289,225,000 | 5,645,662,000 | 7,333,791,000 | 9,751,571,000 | 13,537,358,000 | 13,054,172,000 | 14,518,590,000 | 15,596,431,000 | 17,300,884,000 | | Liabilities | 3,694,230,000 | 4,740,652,000 | 5,041,858,000 | 6,466,606,000 | 8,672,596,000 | 12,008,242,000 | 11,531,909,000 | 12,802,522,000 | 13,772,429,000 | 15,261,498,000 | | Stockholders' equity | 387,098,000 | 548,573,000 | 603,804,000 | 867,185,000 | 1,078,975,000 | 1,529,116,000 | 1,522,263,000 | 1,716,068,000 | 1,824,002,000 | 2,039,386,000 | | Free cash flow | 80,025,000 | 43,245,000 | 105,773,000 | 86,120,000 | 133,255,000 | 158,075,000 | 214,710,000 | 261,682,000 | 239,925,000 | 181,530,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | 32.73% | 23.79% | 37.52% | 30.39% | 24.41% | 34.72% | 39.42% | 25.37% | 21.77% | 22.67% | | Return on equity | 12.62% | 8.78% | 14.78% | 10.69% | 6.89% | 8.70% | 13.34% | 11.31% | 10.16% | 9.87% | | Return on assets | 1.20% | 0.91% | 1.58% | 1.26% | 0.76% | 0.98% | 1.56% | 1.34% | 1.19% | 1.16% | | Liabilities / equity | 9.54 | 8.64 | 8.35 | 7.46 | 8.04 | 7.85 | 7.58 | 7.46 | 7.55 | 7.48 | ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-01. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001025835.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q2 | 2022-06-30 | | | 1.19 | reported discrete quarter | | 2022-Q3 | 2022-09-30 | | | 1.32 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | 1.46 | reported discrete quarter | | 2023-Q2 | 2023-06-30 | 187,897,000 | 49,127,000 | 1.29 | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 200,906,000 | 44,665,000 | 1.17 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 207,083,000 | 44,529,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 207,723,000 | 40,401,000 | 1.05 | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 211,644,000 | 45,446,000 | 1.19 | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 216,304,000 | 50,585,000 | 1.32 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 215,380,000 | 48,834,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 211,780,000 | 49,961,000 | 1.31 | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 218,967,000 | 51,384,000 | 1.36 | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 225,390,000 | 45,235,000 | 1.19 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 232,273,000 | 54,794,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 225,091,000 | 49,362,000 | 1.30 | reported discrete quarter | ## Macro Cross-References - [CPIAUCSL](/indicator/CPIAUCSL/): Consumer Price Index for All Urban Consumers: All Items in U.S. City Average - [UNRATE](/indicator/UNRATE/): Unemployment Rate - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate - [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private - [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit - [DFEDTARL](/indicator/DFEDTARL/): Federal Funds Target Range - Lower Limit - [DGS3MO](/indicator/DGS3MO/): Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity - [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [DGS30](/indicator/DGS30/): Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity - [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity - [CPILFESL](/indicator/CPILFESL/): Consumer Price Index for All Urban Consumers: All Items Less Food and Energy - [CPIUFDSL](/indicator/CPIUFDSL/): Consumer Price Index for All Urban Consumers: Food - [CPIENGSL](/indicator/CPIENGSL/): Consumer Price Index for All Urban Consumers: Energy - [CUSR0000SAH1](/indicator/CUSR0000SAH1/): Consumer Price Index for All Urban Consumers: Shelter - [PCEPI](/indicator/PCEPI/): Personal Consumption Expenditures: Chain-type Price Index - [PCEPILFE](/indicator/PCEPILFE/): Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index - [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities - [T10YIE](/indicator/T10YIE/): 10-Year Breakeven Inflation Rate - [U6RATE](/indicator/U6RATE/): Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons - [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm - [CIVPART](/indicator/CIVPART/): Labor Force Participation Rate - [EMRATIO](/indicator/EMRATIO/): Employment-Population Ratio - [UNEMPLOY](/indicator/UNEMPLOY/): Unemployed - [CE16OV](/indicator/CE16OV/): Employment Level - [ICSA](/indicator/ICSA/): Initial Claims - [JTSJOL](/indicator/JTSJOL/): Job Openings: Total Nonfarm - [JTSQUR](/indicator/JTSQUR/): Quits: Total Nonfarm - [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product - [A191RL1Q225SBEA](/indicator/A191RL1Q225SBEA/): Real Gross Domestic Product: Percent Change from Preceding Period - [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index - [TCU](/indicator/TCU/): Capacity Utilization: Total Index - [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units - [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units - [RSAFS](/indicator/RSAFS/): Advance Retail Sales: Retail Trade - [PCE](/indicator/PCE/): Personal Consumption Expenditures - [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income - [PSAVERT](/indicator/PSAVERT/): Personal Saving Rate - [M2SL](/indicator/M2SL/): M2 - [BOPGSTB](/indicator/BOPGSTB/): U.S. International Trade in Goods and Services: Balance - [MSPUS](/indicator/MSPUS/): Median Sales Price of Houses Sold for the United States - [HSN1F](/indicator/HSN1F/): New One Family Houses Sold: United States - [RHORUSQ156N](/indicator/RHORUSQ156N/): Homeownership Rate in the United States - [TTLCONS](/indicator/TTLCONS/): Total Construction Spending: Total Construction in the United States - [RRVRUSQ156N](/indicator/RRVRUSQ156N/): Rental Vacancy Rate in the United States - [TOTALSL](/indicator/TOTALSL/): Total Consumer Credit Owned and Securitized - [REVOLSL](/indicator/REVOLSL/): Revolving Consumer Credit Owned and Securitized - [DRCCLACBS](/indicator/DRCCLACBS/): Delinquency Rate on Credit Card Loans, All Commercial Banks - [GDP](/indicator/GDP/): Gross Domestic Product - [GPDI](/indicator/GPDI/): Gross Private Domestic Investment - [GCE](/indicator/GCE/): Government Consumption Expenditures and Gross Investment - [PCEC](/indicator/PCEC/): Personal Consumption Expenditures - [NETEXP](/indicator/NETEXP/): Net Exports of Goods and Services - [GFDEBTN](/indicator/GFDEBTN/): Federal Debt: Total Public Debt - [GFDEGDQ188S](/indicator/GFDEGDQ188S/): Federal Debt: Total Public Debt as Percent of Gross Domestic Product - [FYFSD](/indicator/FYFSD/): Federal Surplus or Deficit - [FGRECPT](/indicator/FGRECPT/): Federal Government Current Receipts - [FGEXPND](/indicator/FGEXPND/): Federal Government: Current Expenditures - [MANEMP](/indicator/MANEMP/): All Employees, Manufacturing - [USCONS](/indicator/USCONS/): All Employees, Construction - [USTRADE](/indicator/USTRADE/): All Employees, Retail Trade - [USFIRE](/indicator/USFIRE/): All Employees, Financial Activities - [USGOVT](/indicator/USGOVT/): All Employees, Government - [AWHAETP](/indicator/AWHAETP/): Average Weekly Hours of All Employees, Total Private - [DGORDER](/indicator/DGORDER/): Manufacturers' New Orders: Durable Goods - [NEWORDER](/indicator/NEWORDER/): Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft - [BUSINV](/indicator/BUSINV/): Total Business Inventories - [EXPGS](/indicator/EXPGS/): Exports of Goods and Services - [IMPGS](/indicator/IMPGS/): Imports of Goods and Services - [IR](/indicator/IR/): Import Price Index (End Use): All Commodities - [PPIFIS](/indicator/PPIFIS/): Producer Price Index by Commodity: Final Demand ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1025835/000102583526000108/efsc-20260331.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-05-01 Report date: 2026-03-31 ITEM 2: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Forward Looking Statements This Quarterly Report on Form 10-Q contains information and statements that are considered “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. Such forward-looking statements are based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company, and include, without limitation, statements about the Company’s plans, strategies, goals, objectives, expectations, or consequences of statements about the future performance, operations, products and services of the Company and its subsidiaries, as well as statements about the Company’s expectations regarding revenue and asset growth, financial performance and profitability, loan and deposit growth, yields and returns, loan diversification and credit management, products and services, stockholder value creation and the impact of acquisitions. Forward-looking statements are typically identified with the use of terms such as “may,” “might,” “will,” “would,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “could,” “continue,” “intend,” and the negative and other variations of these terms and similar words and expressions, although some forward-looking statements may be expressed differently. Forward-looking statements are inherently subject to risks and uncertainties and our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. You should be aware that our actual results could differ materially from those contained in the forward-looking statements. While there is no assurance that any list of risks and uncertainties or risk factors is complete, important factors that could cause actual results to differ materially from those in the forward-looking statements include the following, without limitation: the Company’s ability to efficiently integrate acquisitions into its operations, retain the clients of these businesses and grow the acquired operations, the Company’s ability to collect insurance proceeds from claims made related to tax recapture events, credit risk, changes in the appraised valuation of real estate securing impaired loans, outcomes of litigation and other contingencies, exposure to general and local economic and market conditions, high unemployment rates, higher inflation and its impacts (including U.S. federal government measures to address higher inflation), impacts of trade and tariff policies, U.S. fiscal debt, budget and tax matters (including the effect of a prolonged U.S. federal government shutdown), and any slowdown in global economic growth, risks associated with rapid increases or decreases in prevailing interest rates, our ability to attract and retain deposits and access to other sources of liquidity, consolidation in the banking industry, competition from banks and other financial institutions, the Company’s ability to attract and retain relationship officers and other key personnel, burdens imposed by federal and state regulation, changes in legislative or regulatory requirements, as well as current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including rules and regulations relating to bank products and financial services, changes in accounting policies and practices or accounting standards, natural disasters (such as wildfires and earthquakes), terrorist activities, war and geopolitical matters (including in Israel, Iran and Ukraine, and the imposition of additional sanctions and export controls in connection therewith), or pandemics, and their effects on economic and business environments in which we operate, including the related disruption to the financial market and other economic activity; and other risks discussed under the caption “Risk Factors” under Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, and other reports filed with the SEC, all of which could cause the Company’s actual results to differ from those set forth in the forward-looking statements. The Company cautions that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Company’s results. Readers are cautioned not to place undue reliance on forward-looking statements, which reflect management’s analysis and expectations only as of the date of such statements. Forward-looking statements speak only as of the date they are made, and the Company does not intend, and undertakes no obligation, to publicly revise or update forward-looking statements after the date of this report, whether as a result of new information, future events or otherwise, except as required by federal securities law. You should understand that it is not possible to predict or identify all risk factors. Readers should carefully review all disclosures we file from time to time with the SEC which are available on the Company’s website at www.enterprisebank.com under “Investor Relations.” 31 Introduction The following discussion describes the significant changes to the financial condition of the Company that have occurred during the first three months of 2026 compared to the financial condition as of December 31, 2025. In addition, this discussion summarizes the significant factors affecting the results of operations of the Company for the three months ended March 31, 2026, compared to the linked fourth quarter of 2025 (“linked quarter”) and the results of operations, liquidity and cash flows for the three months ended March 31, 2026 compared to the same period in 2025 (“prior year quarter”). In light of the nature of the Company’s business, the Company’s management believes that the comparison to the linked quarter is the most relevant to understand the financial results from management’s perspective. For purposes of the Quarterly Report on Form 10-Q, the Company is presenting a comparison to the corresponding prior year quarter. This discussion should be read in conjunction with the accompanying condensed consolidated financial statements included in this report and the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. Critical Accounting Policies and Estimates The Company’s critical accounting policies are considered important to the understanding of the Company’s financial condition and results of operations. These accounting policies require management’s most difficult, subjective and complex judgments about matters that are inherently uncertain. Because these estimates and judgments are based on current circumstances, they may change over time or prove to be inaccurate based on actual experience. If different assumptions or conditions were to prevail, and depending upon the severity of such changes, the possibility of a materially different financial condition and/or results of operations could reasonably be expected. A full description of our critical accounting policies and the impact and any associated risks related to those policies on our business operations are discussed throughout “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” where such policies affect our reported and expected financial results. For a detailed discussion on the application of these and other accounting policies, see the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. The Company has prepared all of the consolidated financial information in this report in accordance with GAAP. The Company makes estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Such estimates include the valuation of loans, goodwill, intangible assets, and other long-lived assets, along with assumptions used in the calculation of income taxes, among others. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using loss experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. We adjust such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in estimates resulting from continuing changes in the economic environment will be reflected in the financial statement in future periods. There can be no assurances that actual results will not differ from those estimates. 32 ACL The Company maintains separate allowances for funded loans, unfunded loans, and held-to-maturity securities, collectively referred to as the ACL. The ACL is a valuation account to adjust the cost basis to the amount expected to be collected, based on management’s experience, current conditions, and reasonable and supportable forecasts. For purposes of determining the allowance for funded and unfunded loans, the portfolios are segregated into pools that share similar risk characteristics that are then further segregated by credit grades. Loans that do not share similar risk characteristics are evaluated on an individual basis and are not included in the collective evaluation. The Company estimates the amount of the allowance based on loan loss experience, adjusted for current and forecasted economic conditions, including unemployment, changes in GDP, and commercial and residential real estate prices. The Company’s forecast of economic conditions uses internal and external information and considers a weighted average of a baseline, upside, and downside scenarios. Because economic conditions can change and are difficult to predict, the anticipated amount of estimated loan defaults and losses, and therefore the adequacy of the allowance, could change significantly and have a direct impact on the Company’s credit costs. The Company’s ACL on loans was $142.1 million at March 31, 2026 based on the weighting of the different economic scenarios. As a hypothetical example, if the Company had only used the upside scenario, the allowance would have decreased $24.6 million. Conversely, the allowance would have increased $36.4 million using only the downside scenario. 33 Executive Summary Below are highlights of the Company’s financial performance for the periods indicated. ($ in thousands, except per share data) Three months ended March 31, 2026 December 31, 2025 March 31, 2025 EARNINGS Total interest income $ 225,091  $ 232,273  $ 211,780  Total interest expense 58,944  64,099  64,264  Net interest income 166,147  168,174  147,516  Provision for credit losses 7,243  9,236  5,184  Net interest income after provision for credit losses 158,904  158,938  142,332  Total noninterest income 19,088  25,412  18,483  Total noninterest expense 115,137  114,532  99,783  Income before income tax expense 62,855  69,818  61,032  Income tax expense 13,493  15,024  11,071  Net income $ 49,362  $ 54,794  $ 49,961  Preferred dividends 938  937  938  Net income available to common stockholders $ 48,424  $ 53,857  $ 49,023  Basic earnings per common share $ 1.31  $ 1.46  $ 1.33  Diluted earnings per common share $ 1.30  $ 1.45  $ 1.31  Return on average assets 1.16  % 1.27  % 1.30  % Adjusted return on average assets1 1.16  % 1.19  % 1.29  % Return on average common equity 9.80  % 10.95  % 11.10  % Adjusted return on average common equity1 9.84  % 10.28  % 11.08 [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A Extracted from Item 7 to the first post-MD&A boundary after HTML sanitization. Confidence: high ITEM 7: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Introduction The objective of this section is to provide an overview of the results of operations and financial condition of the Company by focusing on changes in certain key measures from year to year. It should be read in conjunction with the Consolidated Financial Statements and related Notes contained in “Item 8. Financial Statements and Supplementary Data,” and other financial data presented elsewhere in this report, particularly the information regarding the Company’s business operations described in Item 1. A detailed discussion comparing 2024 and 2023 results is incorporated herein by reference to Item 7 of the Company’s 2024 Annual Report on Form 10-K filed on February 28, 2025. Executive Summary The Company offers a broad range of business and personal banking services including wealth management. Lending services include C&I, CRE, real estate construction and development, residential real estate, specialty, and consumer loans. A wide variety of deposit products and a complete suite of treasury management and international trade services complement our lending capabilities. The Company’s results of operations are also affected by prevailing economic conditions, competition, government policies and other actions of regulatory agencies. The Company’s financial condition, operating results and liquidity in 2025 continued to be impacted by monetary policy actions. The Federal Reserve decreased the target federal funds rate 75 basis points in 2025, following a 100 basis point decrease in 2024. This follows the period of 2022 to 2023 when the Federal Reserve increased the target federal funds rate 525 basis points. 31 Financial Performance Highlights Below are highlights of our financial performance for the years ended December 31, 2025, 2024 and 2023. ($ in thousands, except per share data) At or for the year ended December 31, 2025 2024 2023 EARNINGS Total interest income $ 888,410  $ 851,051  $ 764,919  Total interest expense 261,672  282,955  202,327  Net interest income 626,738  568,096  562,592  Provision for credit losses 26,337  21,508  36,605  Net interest income after provision for credit losses 600,401  546,588  525,987  Total noninterest income 113,123  69,703  68,725  Total noninterest expense 429,807  385,047  348,186  Income before income tax expense 283,717  231,244  246,526  Income tax expense 82,343  45,978  52,467  Net income $ 201,374  $ 185,266  $ 194,059  Preferred dividends 3,750  3,750  3,750  Net income available to common stockholders $ 197,624  $ 181,516  $ 190,309  Basic earnings per common share $ 5.34  $ 4.86  $ 5.09  Diluted earnings per common share $ 5.31  $ 4.83  $ 5.07  Return on average assets 1.24  % 1.25  % 1.41  % Adjusted return on average assets1 1.23  % 1.26  % 1.41  % Return on average common equity 10.58  % 10.60  % 12.27  % Adjusted return on average common equity1 10.45  % 10.71  % 12.35  % Return on average tangible common equity1 13.34  % 13.58  % 16.25  % Adjusted return on average tangible common equity1 13.17  % 13.71  % 16.35  % Net interest margin (tax-equivalent) 4.21  % 4.16  % 4.43  % Efficiency ratio 58.09  % 60.37  % 55.15  % Core efficiency ratio1 59.32  % 58.42  % 53.42  % Common dividend payout ratio2 22.98  % 21.95  % 19.72  % Book value per common share $ 53.22  $ 47.37  $ 43.94  Tangible book value per common share1 $ 41.37  $ 37.27  $ 33.85  Average common equity to average assets 11.53  % 11.54  % 11.24  % Tangible common equity to tangible assets1 9.07  % 9.05  % 8.96  % ASSET QUALITY Net charge-offs $ 24,302  $ 17,450  $ 38,044  Nonperforming loans 82,809  42,687  43,728  Nonaccrual loans 81,180  42,667  43,181  Nonperforming assets 164,353  46,642  49,464  Classified assets 410,485  193,838  185,389  Total assets 17,300,884  15,596,431  14,518,590  Total loans 11,800,338  11,220,355  10,884,118  Classified assets to total assets 2.37  % 1.24  % 1.28  % Nonperforming loans to total loans 0.70  % 0.38  % 0.40  % Nonperforming assets to total assets 0.95  % 0.30  % 0.34  % ACL on loans to total loans 1.19  % 1.23  % 1.24  % Net charge-offs to average loans 0.21  % 0.16  % 0.37  % 1Non-GAAP measures. A reconciliation has been included in this MD&A section under the caption “Use of Non-GAAP Financial Measures.” 2Dividends per common share divided by diluted earnings per common share. 32 2025 Financial Highlights During 2025, we noted the following significant developments: •The Company had a return on average assets of 1.24%. This drove a 11.0% increase in tangible book value per share in 2025. •Dividends paid in 2025 of $1.22 per share increased $0.16 per share, or 15%, compared to $1.06 per share in 2024. •The Company repurchased 258,739 shares of its common stock at a weighted-average share price of $54.60. •The Bank acquired 12 branches from First Interstate Bank, including certain deposits and loans, and the owned real estate and fixed and other assets associated with the 12 branches. The Company acquired $609 million in deposits, and certain, mostly commercially-oriented loans with outstanding balances of approximately $292 million as of December 31, 2025. The transaction added 10 branches in Arizona and two branches in Kansas City, and expands the Company’s presence in those markets. •A solar provider from which the Company had purchased $24.1 million of transferrable solar tax credits declared bankruptcy. The bankrupt solar provider indirectly owned, through a complex structure of multiple entities, the solar projects generating the tax credits that the Company purchased. As part of the bankruptcy, the bankrupt solar provider sold and transferred equity interests in certain of those entities. As a result of this transfer, the $24.1 million of solar tax credits purchased by the Company were recaptured. The Company previously purchased an insurance policy to insure against recapture risk and anticipates proceeds from the insurance policy to cover the $24.1 million of recaptured tax credits and approximately $8.0 million of incremental tax liability attributable to the anticipated insurance proceeds from the insured recaptured credits. •The Company redeemed $63.3 million of subordinated debt that had a floating rate of three-month Term SOFR plus a spread of 5.66%. The redemption was funded through the issuance of a $63.3 million senior note at a rate of one-month Term SOFR plus a spread of 2.50%. The Company noted the following trends during 2025: •The Company reported net income of $201.4 million, or $5.31 per diluted share for 2025, compared to $185.3 million, or $4.83 per diluted share for 2024. PPNR1 for 2025 was $274.7 million, compared to $255.2 million in 2024. PPNR ROAA1 for 2025 and 2024 was 1.70% and 1.72%, respectively. The increase in PPNR1 was primarily due to higher net interest income that benefited from an organic increase in average interest-earning asset balances and liquidity provided through the Branch Acquisition, and lower rates paid on interest-bearing liabilities. These increases were partially offset by an increase in noninterest expense due to the Branch Acquisition, merit increases, higher headcount and higher deposit costs from growth in the deposit verticals. •Net interest income was $626.7 million, an increase of $58.6 million over the prior year. NIM increased to 4.21% in 2025, from 4.16% in 2024, primarily due to higher average loan and securities balances, higher yields on the securities portfolio, and lower short-term interest rates that decreased deposit interest expense. Average loans and securities increased $472.6 million and $753.8 million, respectively, compared to 2024. While the decline in market interest rates reduced the yield on loans 28 basis points, the yield on securities increased 51 basis points compared to 2024. The total cost of deposits was 1.77% in 2025 compared to 2.12% in 2024. 1 PPNR, PPNR ROAA, and the core efficiency ratio are non-GAAP measures. A reconciliation has been included in this MD&A section under the caption “Use of Non-GAAP Financial Measures.” 33 •Noninterest income was $113.1 million, an increase of $43.4 million from $69.7 million in 2024. Noninterest income in 2025 includes $32.1 million of anticipated insurance proceeds from a pending claim related to a recapture event during the third quarter 2025 with respect to a $24.1 million solar tax credit. There is an offsetting amount of $32.1 million in income tax expense related to the solar tax credit recapture. •Noninterest expense was $429.8 million in 2025, a 12% increase from $385.0 million in 2024. The increase in noninterest expense was primarily from higher deposit costs due to an increase in average deposit vertical balances, an increase in compensation due an expanded associate base and the onboarding of the associates from the fourth quarter 2025 Branch Acquisition, along with other expenses related to the Branch Acquisition. The increase was partially offset by a $4.9 million decline in core conversion expenses due to the completion of the core implementation in the fourth quarter 2024. The core efficiency ratio1 was 59.3% in 2025, compared to 58.4% in 2024. 2024 Financial Highlights During 2024, noted the following significant developments: •The Company had a return on average assets of 1.25%. This drove a 10.1% increase in tangible book value per share in 2024. •Dividends paid in 2024 of $1.06 per share increased $0.06 per share, or 6%, compared to $1.00 per share in 2023. •The Company repurchased 626,778 of its common shares at a weighted-average share price of $46.95. •In the fourth quarter 2024, the Company successfully completed the conversion of its legacy core system into a new core banking platform. 34 RESULTS OF OPERATIONS Net Interest Income Average Balance Sheet The following table presents, for the periods indicated, certain information related to our average interest-earning assets and interest-bearing liabilities, as well as, the corresponding interest rates earned and paid, all on a tax-equivalent basis. Average balances are presented on a daily average basis. Year ended December 31, 2025 2024 2023 ($ in thousands) Average Balance Interest Income/Expense Average Yield/ Rate Average Balance Interest Income/Expense Average Yield/ Rate Average Balance Interest Income/Expense Average Yield/ Rate Assets Interest-earning assets: Loans1, 2 $ 11,463,410  $ 755,222  6.59  % $ 10,990,774  $ 755,448  6.87  % $ 10,324,951  $ 688,439  6.67  % Taxable securities 2,057,017  83,734  4.07  1,512,132  53,167  3.52  1,320,664  40,920  3.10  Non-taxable securities2 1,209,424  43,623  3.61  1,000,558  31,963  3.19  970,888  30,209  3.11  Total securities 3,266,441  127,357  3.90  2,512,690  85,130  3.39  2,291,552  71,129  3.10  Interest-earning deposits 418,980  17,566  4.19  368,221  18,918  5.14  260,214  13,430  5.16  Total interest-earning assets 15,148,831  900,145  5.94  13,871,685  859,496  6.20  12,876,717  772,998  6.00  Noninterest-earning assets 1,050,172  970,005  928,519  Total assets $ 16,199,003  $ 14,841,690  $ 13,805,236  Liabilities and Stockholders' Equity Interest-bearing liabilities: Interest-bearing demand accounts $ 3,311,368  $ 68,932  2.08  % $ 3,033,616  $ 76,932  2.54  % $ 2,559,238  $ 46,976  1.84  % Money market accounts 3,730,110  113,286  3.04  3,494,497  127,651  3.65  3,043,794  92,976  3.05  Savings accounts 535,021  724  0.14  567,147  1,261  0.22  668,368  975  0.15  Certificates of deposit 1,533,608  58,156  3.79  1,371,009  58,764  4.29  1,198,551  42,796  3.57  Total interest-bearing deposits 9,110,107  241,098  2.65  8,466,269  264,608  3.13  7,469,951  183,723  2.46  Subordinated debentures and notes 135,809  9,543  7.03  156,260  10,497  6.72  155,702  9,781  6.28  FHLB advances 75,027  3,422  4.56  30,363  1,691  5.57  54,615  2,752  5.04  Securities sold under agreements to repurchase 201,001  5,829  2.90  164,959  5,667  3.44  168,745  3,647  2.16  Other borrowings 56,610  1,780  3.14  37,833  492  1.30  71,738  2,424  3.38  Total interest-bearing liabilities 9,578,554  261,672  2.73  8,855,684  282,955  3.20  7,920,751  202,327  2.55  Noninterest-bearing liabilities: Demand deposits 4,525,761  4,042,368  4,131,163  Other liabilities 155,194  159,463  130,201  Total liabilities 14,259,509  13,057,515  12,182,115  Stockholders' equity 1,939,494  1,784,175  1,623,121  Total liabilities & stockholders’ equity $ 16,199,003  $ 14,841,690  $ 13,805,236  Net interest income $ 638,473  $ 576,541  $ 570,671  Net interest spread 3.21  % 3.00  % 3.45  % Net interest margin 4.21  % 4.16  % 4.43  % 1Average balances include nonaccrual loans. Interest income includes loan fees of $7.0 million, $9.6 million, and $13.8 million for the years ended December 31, 2025, 2024, and 2023 respectively. 2Non-taxable income is presented on a fully tax-equivalent basis using a tax rate of approximately 25%. The tax-equivalent adjustments were $11.7 million, $8.4 million, and $8.1 million for the years ended December 31, 2025, 2024, and 2023, respectively. 35 Rate/Volume The following table sets forth, on a tax-equivalent basis for the periods indicated, a summary of the changes in interest income and interest expense resulting from changes in yield/rates and volume. 2025 compared to 2024 2024 compared to 2023 Increase (decrease) due to Increase (decrease) due to ($ in thousands) Volume1 Rate2 Net Volume1 Rate2 Net Interest earned on: Loans $ 31,919  $ (32,145) $ (226) $ 45,473  $ 21,536  $ 67,009  Taxable securities 21,260  9,307  30,567  6,347  5,900  12,247  Non-taxable securities3 7,204  4,456  11,660  936  818  1,754  Interest-earning deposits 2,402  (3,754) (1,352) 5,549  (61) 5,488  Total interest-earning assets 62,785  (22,136) 40,649  58,305  28,193  86,498  Interest paid on: Interest-bearing demand accounts $ 6,617  $ (14,617) $ (8,000) $ 9,794  $ 20,162  $ 29,956  Money market accounts 8,192  (22,557) (14,365) 14,928  19,747  34,675  Savings accounts (68) (469) (537) (165) 451  286  Certificates of deposit 6,562  (7,170) (608) 6,674  9,294  15,968  Subordinated debentures and notes (1,421) 467  (954) 35  681  716  FHLB advances 2,086  (355) 1,731  (1,326) 265  (1,061) Securities sold under agreements to repurchase 1,126  (964) 162  (84) 2,104  2,020  Other borrowed funds 334  954  1,288  (839) (1,093) (1,932) Total interest-bearing liabilities 23,428  (44,711) (21,283) 29,017  51,611  80,628  Net interest income $ 39,357  $ 22,575  $ 61,932  $ 29,288  $ (23,418) $ 5,870  1Change in volume multiplied by yield/rate of prior period. 2Change in yield/rate multiplied by volume of prior period. 3Nontaxable income is presented on a fully tax-equivalent basis using a tax rate of approximately 25%. NOTE: The change in interest due to both rate and volume has been allocated to rate and volume changes in proportion to the relationship of the absolute dollar amounts of the change in each. Net interest income (on a tax-equivalent basis) was $638.5 million for 2025, compared to $576.5 million for 2024, an increase of $61.9 million. The increase in net interest income in 2025 was primarily due to higher average interest-earning asset balances and a decrease in the average rates paid on interest-bearing liabilities. Total tax-equivalent interest income of $900.1 million increased $40.6 million in 2025 primarily due to a $42.2 million increase in interest income from investment securities. Higher interest income on investment securities was primarily due to a $753.8 million increase in average securities balances and a 51 basis point increase in yield on investment securities. Average securities represented 22% and 18% of earnings assets for 2025 and 2024, respectively. Average loan balances increased $472.6 million during the year primarily from organic loan growth and the Branch Acquisition, partially offset by a 28 basis point decrease in loan yield resulting in a $0.2 million decrease in loan interest income. Overall, average interest-earning assets increased $1.3 billion, or 9%, to $15.1 billion for the year ended December 31, 2025. Excess liquidity provided through the Branch Acquisition was deployed into the securities portfolio and other interest-earning assets. Volume growth of the balance sheet drove an increase in interest income on earning assets of $62.8 million, partially offset by a decrease of $22.1 million in yield on interest-earning assets in 2025 compared to 2024. 36 Total interest expense decreased $21.3 million in 2025 primarily due to decreased rates paid on interest-bearing liabilities. The decrease in deposit interest expense reflects lower rates paid on deposits, partially offset by successful marketing efforts and acquired deposits in connection with the Branch Acquisition that increased average deposit balances. Total average interest-bearing deposits increased to $9.1 billion, an increase of $643.8 million, or 8%, in 2025 over the average for 2024. Average noninterest-bearing deposits increased $483.4 million, or 12%, in 2025 compared to the average for 2024. Average noninterest-bearing deposits represented 33% of total average deposits in 2025, compared to 32% in 2024. Overall, average interest-bearing liabilities increased $722.9 million, or 8%, for the year ended December 31, 2025 as compared to the prior year end. The increase in the average balance of interest-bearing liabilities increased interest expense in 2025 by $23.4 million, which was partially offset by the decrease in the average cost of interest-bearing liabilities that decreased interest expense $44.7 million in 2025. The tax-equivalent net interest margin was 4.21% for 2025, compared to 4.16% for 2024. The primary driver of the increase in net interest margin from 2024 to 2025 was lower interest expense on the deposit portfolio. Since September 2024, the Federal Reserve has reduced the federal funds target rate 175 basis points. As of December 31, 2025, variable-rate loans comprised approximately 60% of total loans. The earning-asset yield decreased 26 basis points to 5.94% in 2025, compared to 6.20% in 2024. Comparatively, the cost of interest-bearing liabilities decreased 47 basis points to 2.73%, from 3.20% in 2024. Noninterest Income The following table presents a comparative summary of the major components of noninterest income for each of the years in the three-year period ended December 31, 2025: Year ended December 31, Change from ($ in thousands) 2025 2024 2023 2025 vs. 2024 2024 vs. 2023 Deposit service charges $ 19,376  $ 18,344  $ 16,559  $ 1,032  $ 1,785  Wealth management revenue 10,456  10,452  10,030  4  422  Card services revenue 9,995  9,966  10,028  29  (62) Tax credit income 7,697  8,954  9,196  (1,257) (242) Anticipated insurance recoveries 32,112  —  —  32,112  —  Other income 33,487  21,987  22,912  11,500  (925) Total noninterest income $ 113,123  $ 69,703  $ 68,725  $ 43,420  $ 978  Noninterest income increased $43.4 million, or 62%, in 2025 compared to 2024. The increase in noninterest income was primarily due to $32.1 million of anticipated insurance proceeds from a third quarter 2025 pending claim related to a recapture event with respect to a solar tax credit that the Company purchased and applied to prior taxable periods. Excluding this item, noninterest income increased primarily due to an $11.5 million increase in other income. Other income increased primarily due to higher BOLI income ($3.7 million), an increase in gains on the sale of SBA loans ($2.8 million), and an increase in net gain on OREO ($3.2 million). Private equity and community development income are not consistent sources of income and fluctuate based on distributions and earnings from the underlying funds. In 2025, the Company sold the guaranteed portion of SBA 7(a) loans of $78.2 million for a gain of $4.2 million, compared to $23.1 million and $1.4 million, respectively, in 2024. 37 Noninterest Expense The following table presents a comparative summary of the components of noninterest expense: Year ended December 31, Change from ($ in thousands) 2025 2024 2023 2025 vs. 2024 2024 vs. 2023 Employee compensation and benefits $ 198,666  $ 182,713  $ 164,566  $ 15,953  $ 18,147  Deposit costs 103,231  88,645  72,293  14,586  16,352  Occupancy 20,154  17,231  16,526  2,923  705  Data processing 20,239  19,671  15,196  568  4,475  Professional fees 9,605  6,257  5,719  3,348  538  Other expenses 77,912  70,530  73,886  7,382  (3,356) Total noninterest expense $ 429,807  $ 385,047  $ 348,186  $ 44,760  $ 36,861  Efficiency ratio 58.1  % 60.4  % 55.2  % (2.3) % 5.2  % Core efficiency ratio1 59.3  % 58.4  % 53.4  % 0.9  % 5.0  % 1 A non-GAAP measure. A reconciliation has been included in this MD&A section under the caption “Use of Non-GAAP Financial Measures.” Noninterest expense increased $44.8 million, or 12%, in 2025 compared to 2024. The increase was attributed primarily to an increase in compensation and benefits due to annual merit increases, an expanded associate base, the onboarding of the associates from the Branch Acquisition, and the recruitment of new relationship bankers. The total cost of the Branch Acquisition in noninterest expense was $3.7 million in 2025. The increase from 2024 was also primarily due to a $14.6 million increase in deposit costs due to an increase in average deposit vertical balances. For certain deposit accounts in the Company’s deposit verticals, clients receive an earnings credit allowance on average collected balances that may be used to offset expenses associated with the client’s activities for managing the accounts. These costs are reflected in noninterest expense as deposit costs. Average balances in the deposit verticals were approximately $3.8 billion and $3.1 billion, resulting in an average deposit vertical cost of 2.75% and 2.82% for 2025 and 2024, respectively. Income Taxes As part of the normal, ongoing review of state tax apportionment, the Company's state statutory tax rate was increased in the fourth quarter. Due to the increase, the Company’s blended federal and state tax rate was approximately 25.1% in 2025, compared to 24.8% in 2024. Included in tax expense during 2025 was $24.1 million in recaptured tax credits as discussed above and approximately $8.0 million of incremental tax liability attributable to the anticipated insurance proceeds from the insured recaptured credits. Excluding the impact of the recaptured tax credits and related insurance proceeds, the adjusted effective tax rate2 for 2025, after adjusting for permanent tax differences such as tax exempt income and tax credits, is approximately 20.0% compared to 19.9% in 2024. See “Item 8. Note 15 – Income Taxes” for additional information. 2 Adjusted effective tax rate is a non-GAAP measure. A reconciliation has been included in this MD&A section under the caption “Use of Non-GAAP Financial Measures.” 38 FINANCIAL CONDITION Summary Balance Sheet ($ in thousands) December 31, % Increase (Decrease) 2025 2024 2023 2025 vs. 2024 2024 vs. 2023 Cash and cash equivalents $ 681,902  $ 764,170  $ 433,029  (10.77) % 76.47  % Securities 3,729,992  2,791,205  2,368,707  33.63  % 17.84  % Loans 11,800,338  11,220,355  10,884,118  5.17  % 3.09  % Assets 17,300,884  15,596,431  14,518,590  10.93  % 7.42  % Deposits 14,609,342  13,146,492  12,176,371  11.13  % 7.97  % Liabilities 15,261,498  13,772,429  12,802,522  10.81  % 7.58  % Stockholders’ equity 2,039,386  1,824,002  1,716,068  11.81  % 6.29  % The table below represents the summary balance sheet shown as a percentage of account class (total assets, total liabilities or total stockholders’ equity), as applicable: December 31, 2025 2024 2023 Cash and cash equivalents to total assets 3.94  % 4.90  % 2.98  % Securities to total assets 21.56  % 17.90  % 16.31  % Loans to total assets 68.21  % 71.94  % 74.97  % Deposits to total liabilities 95.73  % 95.46  % 95.11  % Assets Loans by Type The Company has a diversified loan portfolio, with no particular concentration of credit in any one economic sector other than those noted in the table of loans by NAICS code below; however, a substantial portion of the portfolio, including the C&I category, is secured by real estate. The ability of the Company’s borrowers to honor their contractual obligations is partially dependent upon the local economy and its effect on the real estate market. Included in total loans at December 31, 2025 are $292.0 million of loans from the Branch Acquisition. 39 The following table sets forth the composition of the loan portfolio by type of loans: December 31, ($ in thousands) 2025(1) 2024 C&I $ 5,231,616  $ 4,716,689  CRE - investor owned 2,984,858  2,606,964  CRE - owner occupied 2,468,963  2,367,823  Construction and land development 687,584  891,059  Residential real estate 367,682  359,263  Consumer 59,635  278,557  Total loans $ 11,800,338  $ 11,220,355  (1)Certain loans were reclassified from Consumer and into other categories in 2025. Prior period amounts were not adjusted. December 31, 2025 2024 C&I 44.3  % 42.0  % CRE - investor owned 25.3  % 23.2  % CRE - owner occupied 20.9  % 21.1  % Construction and land development 5.9  % 8.0  % Residential real estate 3.1  % 3.2  % Consumer 0.5  % 2.5  % Total loans 100.0  % 100.0  % C&I loans are made based on the borrower’s ability to generate cash flows for repayment from income sources, general credit strength, experience, and character, even though such loans may also be secured by real estate or other assets. The credit risk related to commercial loans is largely influenced by general economic conditions and the resulting impact on a borrower’s operations. The Company continues to focus on originating high-quality C&I loan relationships as they allow for cross selling opportunities involving other banking products. Our specialized products, especially sponsor finance, life insurance premium financing, and tax credit lending, consist of primarily C&I loans, and have contributed significantly to the Company’s C&I loan growth. These loans are sourced through relationships developed with wealth and estate planning firms, private equity funds and tax credit specialists and are not bound geographically to our markets. As a result, these specialized loan products offer opportunities to expand and diversify our overall geographic concentration by entering into new markets. C&I also represents loans to state and political subdivisions, loans to nondepository financial institutions, and loans to purchase, or are fully secured by, investment securities. 40 Real estate loans place an emphasis on the estimated cash flows from the operation of the property and/or the underlying collateral value. •Our CRE loans, including investor-owned and owner-occupied categories, primarily represent commercial property loans on which the primary source of repayment is income from the property for investor-owned and the operating business for owner-occupied. These loans are principally underwritten based on the cash flow coverage of the property, the Company’s loan to value guidelines, and generally require either the limited or full guaranty of principal sponsors of the credit. The Company also maintains standards for amortization and maturity terms. CRE loans also represent owner-occupied C&I loans for which the primary source of repayment is dependent on sources other than the underlying collateral. In an effort to mitigate credit risk, the Company routinely reviews its loan portfolio for various concentrations. Annually, management prepares an assessment of credit risk in the various loan portfolios, with a significant portion of the commercial loan portfolio subject to review. These reviews consider the Company’s collateral position as well as exposure to a given industry sector. The Company performs site visits as part of the underwriting process, in addition to stress tests for vacancy, rental and interest rates on certain property types. The Company believes that the loan portfolio is sufficiently diversified to provide protection from deterioration in any particular industry, geography or devaluation of a specific collateral type. •Construction and land development loans relating primarily to residential and commercial properties, represent financing secured by real estate under development for eventual sale or undeveloped ground. At December 31, 2025, $378.5 million of these loans include the use of interest reserves and follow standard underwriting guidelines. Construction projects are monitored by the loan officer and a centralized independent loan disbursement function. •Residential real estate loans include residential mortgages, which are loans that, due to size or other attributes, do not qualify for conventional home mortgages available-for-sale in the secondary market, second mortgages, home equity lines and conventional mortgages that are part of a broad banking relationship with the Company. Residential mortgage loans are usually limited to a maximum of 80% of collateral value at origination. Consumer loans represent loans to individuals. Credit risk is managed by thoroughly reviewing the creditworthiness of the borrowers prior to origination and thereafter. 41 The following table presents a breakdown of loans by NAICS code at the periods indicated: December 31, 2025 2024 ($ in thousands) Outstanding Balance % Outstanding Balance % Accommodation and food services $ 995,727  8  % $ 1,052,105  9  % Administrative and support and waste management and remediation services 217,833  2  % 207,003  2  % Agriculture, forestry, fishing and hunting1 106,535  1  % 141,339  1  % Arts, entertainment, and recreation 143,315  1  % 139,256  1  % Construction 635,854  5  % 584,421  5  % Educational services 49,753  NM 49,942  NM Finance and insurance 2,540,455  22  % 2,252,420  20  % Health care and social assistance 678,129  6  % 612,767  5  % Information 75,033  1  % 68,839  1  % Management of companies and enterprises 65,127  1  % 91,890  1  % Manufacturing 812,042  7  % 750,480  7  % Mining, quarrying, and oil and gas extraction 15,872  NM 5,494  NM Other services (except public administration) 547,447  5  % 556,325  5  % Professional, scientific, and technical services 334,802  3  % 311,160  3  % Public administration 13,156  NM 11,889  NM Real estate and rental and leasing 3,091,499  26  % 2,904,153  26  % Retail trade 602,440  5  % 561,932  5  % Transportation and warehousing 254,049  2  % 286,906  3  % Utilities 27,097  NM 7,139  NM Wholesale trade 524,525  4  % 517,761  5  % Other 69,648  1  % 107,134  1  % Total loans $ 11,800,338  100  % $ 11,220,355  100  % 1Includes $40.6 million and $54.2 million in animal production at December 31, 2025, and 2024, respectively and $53.4 million and $69.4 million in crop production at December 31, 2025, and 2024, respectively. At December 31, 2025 and 2024, the Company had an agricultural loan portfolio of $69.3 million and $121.8 million, respectively. The Company continues to wind down this portfolio over time as the loans mature or pay down. The Company does not intend to enter into new agricultural loans. The following table presents a breakdown of C&I loans by size at the periods indicated: December 31, 2025 2024 ($ in thousands) Number of Loans Outstanding Balance Average Balance Number of Loans Outstanding Balance Average Balance $2 million 2,828  $ 927,862  $ 328  2,582  $ 864,511  $ 335  $2-5 million 347  1,110,868  3,201  343  1,114,922  3,251  $5-10 million 173  1,197,912  6,924  145  1,001,137  6,904  $10 million 105  1,994,974  19,000  95  1,736,119  18,275  Total 3,453  $ 5,231,616  $ 1,515  3,165  $ 4,716,689  $ 1,490  42 The following table presents a breakdown of CRE loans (investor owned and owner occupied) by size at the periods indicated: December 31, 2025 2024 ($ in thousands) Number of Loans Outstanding Balance Average Balance Number of Loans Outstanding Balance Average Balance $2 million 2,925  $ 1,760,971  $ 602  2,958  $ 1,792,813  $ 606  $2-5 million 481  1,478,057  3,073  443  1,363,797  3,079  $5-10 million 136  946,589  6,960  114  765,059  6,711  $10 million 74  1,268,204  17,138  65  1,053,118  16,202  Total 3,616  $ 5,453,821  $ 1,508  3,580  $ 4,974,787  $ 1,390  The Company had $574.8 million and $513.7 million of investor owned office real estate loans as of December 31, 2025 and 2024, respectively. The Company also had $399.0 million and $322.5 million of multifamily CRE loans as of December 31, 2025 and 2024, respectively. The following table presents a breakdown of construction loans by size at the periods indicated: December 31, 2025 2024 ($ in thousands) Number of Loans Outstanding Balance Average Balance Number of Loans Outstanding Balance Average Balance $2 million 284  $ 124,221  $ 437  303  $ 128,236  $ 423  $2-5 million 42  128,749  3,065  52  162,936  3,133  $5-10 million 15  107,813  7,188  27  201,108  7,448  $10 million 21  326,801  15,562  25  398,779  15,951  Total 362  $ 687,584  $ 1,899  407  $ 891,059  $ 2,189  The following table presents a breakdown of residential loans by size at the periods indicated: December 31, 2025 2024 ($ in thousands) Number of Loans Outstanding Balance Average Balance Number of Loans Outstanding Balance Average Balance $2 million 1,998  $ 283,183  $ 142  2,000  $ 275,321  $ 138  $2-5 million 17  57,858  3,403  19  62,409  3,285  $5-10 million 4  26,641  6,660  3  21,533  7,177  Total 2,019  $ 367,682  $ 182  2,022  $ 359,263  $ 178  43 The following table presents a breakdown of consumer loans by size at the periods indicated: December 31, 2025(1) 2024 ($ in thousands) Number of Loans Outstanding Balance Average Balance Number of Loans Outstanding Balance Average Balance $2 million 922  $ 57,134  $ 62  1,023  $ 92,471  $ 90  $2-5 million 1  2,501  2,501  20  65,074  3,254  $5-10 million —  —  —  6  38,714  6,453  $10 million —  —  —  4  82,298  20,574  Total 923  $ 59,635  $ 65  1,053  $ 278,557  $ 265  (1)Certain loans were reclassified from Consumer and into other categories in 2025. Prior period amounts were not adjusted. The following table presents a breakdown of total loans by geographic region at the periods indicated: December 31, ($ in thousands) 2025 2024 Midwest $ 3,372,474  $ 3,201,313  Southwest 2,229,070  1,784,824  West 1,883,236  1,855,380  Specialty and Consumer loans 4,315,558  4,378,838  Total $ 11,800,338  $ 11,220,355  The following table presents a breakdown of total loans by MSA, excluding specialty and consumer loans, at the periods indicated: December 31, ($ in thousands) 2025 2024 St. Louis, MO-IL MSA $ 2,203,659  $ 2,225,856  Los Angeles-Long Beach-Santa Ana, CA MSA 1,318,397  1,557,990  Phoenix-Mesa-Chandler, AZ MSA 1,254,713  993,239  Kansas City, MO-KS MSA 1,038,226  975,457  San Diego-Carlsbad-San Marcos, CA MSA 564,038  297,359  Dallas-Fort Worth-Arlington, TX MSA 279,196  185,242  Albuquerque, NM MSA 216,130  211,642  Santa Fe, NM MSA 169,771  151,883  Las Vegas-Paradise, NV MSA 236,047  165,485  Tucson-Nogales, AZ MSA 69,564  —  All other MSAs 135,039  77,364  Specialty and Consumer loans 4,315,558  4,378,838  Total $ 11,800,338  $ 11,220,355  Loan guarantees, primarily on SBA 7(a) loans, totaled $960.1 million and $947.7 million at December 31, 2025 and 2024, respectively. 44 The following table sets forth additional information on certain categories of loans that are included in total loans above at the periods indicated: ($ in thousands) December 31, 2025 December 31, 2024 Increase (decrease) SBA loans $ 1,262,456  1,298,007  $ (35,551) (3) % Sponsor finance 694,905  782,722  (87,817) (11) % Life insurance premium finance 1,187,128  1,114,299  72,829  7  % Tax credits 802,818  760,229  42,589  6  % The sponsor finance portfolio is primarily comprised of loans in the manufacturing and wholesale trade sectors. It includes mid-market company mergers and acquisitions, targeted private equity firms, principally SBICs, and senior debt financing to portfolio companies. The life insurance premium finance category specializes in financing whole life insurance premiums utilized in high net worth estate planning, through relationships with boutique estate planners throughout the United States. The tax credit portfolio includes tax credit-related lending on affordable housing projects funded through the use of federal and state low income housing tax credits. In addition, we provide leveraged and other loans on projects funded through the CDFI New Markets Tax Credit Program. This portfolio also includes tax credit brokerage through 10-year streams of state tax credits from affordable housing development funds. The tax credits are sold to clients and other individuals for tax planning purposes. SBA loans are originated under the SBA 7(a) program and are primarily owner-occupied, CRE loans secured by a 1st lien. These loans predominantly have a 75% portion guaranteed by the SBA. Significant loan concentrations are considered to exist for a financial institution when there are amounts loaned to numerous borrowers engaged in similar activities that would cause them to be similarly impacted by economic or other conditions. At December 31, 2025, no significant concentrations exceeding 10% of total loans existed in the Company’s loan portfolio, except as described above. 45 The following table presents the maturity distribution of loans at December 31, 2025 categorized by fixed or variable interest rates, net of unearned loan fees: ($ in thousands) Due in One  Year or Less (1) After One Through Five Years After Five Through Fifteen Years After Fifteen Years Total Percent of Total Loans Fixed rate loans C&I $ 114,325  $ 1,036,964  $ 282,917  $ 13,419  $ 1,447,625  12  % Real estate: Commercial 589,463  1,843,501  316,639  278,636  3,028,239  26  % Construction and land development 28,114  58,563  84  4,999  91,760  1  % Residential 37,295  84,957  21,424  13,160  156,836  1  % Consumer 2,618  2,915  17,862  25,581  48,976  NM Total $ 771,815  $ 3,026,900  $ 638,926  $ 335,795  $ 4,773,436  40  % Variable rate loans C&I $ 1,409,356  $ 2,062,589  $ 295,494  $ 16,552  $ 3,783,991  32  % Real estate: Commercial 243,460  680,343  409,149  1,092,630  2,425,582  21  % Construction and land development 197,167  239,263  106,014  53,380  595,824  5  % Residential 40,355  30,708  56,463  83,320  210,846  2  % Consumer 4,181  6,221  141  116  10,659  NM Total $ 1,894,519  $ 3,019,124  $ 867,261  $ 1,245,998  $ 7,026,902  60  % Total loans C&I $ 1,523,681  $ 3,099,553  $ 578,411  $ 29,971  $ 5,231,616  44  % Real estate: Commercial 832,923  2,523,844  725,788  1,371,266  5,453,821  47  % Construction and land development 225,281  297,826  106,098  58,379  687,584  6  % Residential 77,650  115,665  77,887  96,480  367,682  3  % Consumer 6,799  9,136  18,003  25,697  59,635  NM Total $ 2,666,334  $ 6,046,024  $ 1,506,187  $ 1,581,793  $ 11,800,338  100  % (1) Includes loans with no stated maturity and overdraft lines of credit. The majority of variable rate loans are based on the prime rate or SOFR. At December 31, 2025, $4.8 billion or 68% of variable rate loans were subject to an interest rate floor. Most variable rate loan originations have one-to three-year maturities. Management monitors this mix as part of its interest rate risk management. The Company has also entered into interest rate hedges to reduce the cash flow impact of changes in interest rates on the variable rate loan portfolio. These hedges, which include interest rate swaps and collars, had a notional amount of $400.0 million at both December 31, 2025 and 2024. See “Interest Rate Risk” of this MD&A section for additional information. Provision and ACL The following table presents the components of the provision for credit losses for the periods indicated: December 31, ($ in thousands) 2025 2024 Provision for credit losses on loans $ 23,076  $ 20,629  Benefit for off-balance sheet commitments (100) (586) Benefit for held-to-maturity securities (112) (528) Charge-offs of accrued interest 3,473  1,993  Provision for credit losses $ 26,337  $ 21,508  46 The provision for credit losses, which includes a provision for losses on unfunded commitments, is a charge to earnings to maintain the ACL on loans at a level consistent with management’s assessment of expected losses in the loan portfolio at the balance sheet date. The Company also records reversals of interest on nonaccrual loans and interest recoveries directly through the provision of credit losses. The CECL methodology requires economic forecasts to be factored into determining estimated losses. As a result, CECL is designed to typically require a higher level of provision at the start of an economic downturn. The increase in the provision for credit losses in 2025 was primarily due to loan growth, net charge-offs and the increase in nonperforming loans. The higher provision for credit losses in 2024 was also primarily due to loan growth, net charge-offs and the increase in nonperforming loans. To the extent the Company does not recognize charge-offs and economic forecasts improve in future periods, the Company could recognize a reversal of provision for credit losses. Conversely, if economic conditions and the Company’s forecast worsens, the Company could recognize elevated levels of provision for credit losses. The provision is also reflective of charge-offs in the period. The following table summarizes the allocation of the ACL on loans: December 31, ($ in thousands) 2025 2024 Amount Percent of loans in each category to total loans Amount Percent of loans in each category to total loans C&I $ 68,345  44.4  % $ 63,231  42.1  % Real estate: Commercial 50,783  46.2  % 54,617  44.3  % Construction and land development 11,016  5.8  % 9,837  8.0  % Residential 8,023  3.1  % 6,534  3.2  % Consumer 1,855  0.5  % 3,731  2.4  % Total allowance $ 140,022  100.0  % $ 137,950  100.0  % The ACL on loans was 1.19% of total loans at December 31, 2025, compared to 1.23%, and 1.24%, at December 31, 2024 and 2023, respectively. The decrease in the allowance to total loans ratio in 2025 compared to 2024 was primarily due to an improvement in the economic forecast, a reduction in qualitative reserves, and net loan charge-offs of $24.3 million. The Company adopted a new accounting standard in the current quarter that resulted in the $3.3 million credit mark on the acquired loan portfolio from the Branch Acquisition being added directly to the ACL in purchase accounting and no provision for credit losses was recognized on the acquired loans. 47 The following table is a summary of net charge-offs (recoveries) to average loans for the periods indicated: December 31, 2025 2024 ($ in thousands) Net Charge-offs (Recoveries) Average Loans(1) Net Charge-offs (Recoveries)/Average Loans Net Charge-offs (Recoveries) Average Loans(1) Net Charge-offs (Recoveries)/Average Loans C&I $ 15,371  $ 5,069,686  0.30  % $ 10,425  $ 5,602,957  0.19  % Real estate: Commercial 5,030  5,120,288  0.10  % 3,510  3,934,764  0.09  % Construction and land development 3,240  848,995  0.38  % 3,125  792,854  0.39  % Residential (70) 365,429  (0.02) % (264) 352,754  (0.07) % Consumer 731  58,249  1.25  % 654  306,583  0.21  % Total $ 24,302  $ 11,462,647  0.21  % $ 17,450  $ 10,989,912  0.16  % (1) Excludes loans held for sale. See “Critical Accounting Policies and Estimates” of this MD&A section for more information on the ACL methodology. Nonperforming loans and assets See “Item 8. Note 1 – Summary of Significant Accounting Policies” for more information on nonaccrual loans and OREO. The following table presents the categories of nonperforming assets and other ratios, excluding government guaranteed portions, as of the dates indicated. December 31, ($ in thousands) 2025 2024 Nonaccrual loans $ 81,180  $ 42,667  Loans past due 90 days or more and still accruing interest 1,629  20  Total nonperforming loans 82,809  42,687  OREO 81,544  3,955  Total nonperforming assets $ 164,353  $ 46,642  Total assets $ 17,300,884  $ 15,596,431  Total loans 11,800,338  11,220,355  Total ACL on loans 140,022  137,950  ACL on loans to nonaccrual loans 172  % 323  % ACL on loans to nonperforming loans 169  % 323  % ACL on loans to total loans 1.19  % 1.23  % Nonaccrual loans to total loans 0.69  % 0.38  % Nonperforming loans to total loans 0.70  % 0.38  % Nonperforming assets to total assets 0.95  % 0.30  % 48 Nonperforming loans based on loan type were as follows: December 31, 2025 December 31, 2024 ($ in thousands) Amount Percent Number of loans Amount Percent Number of loans C&I $ 27,979  34  % 19  $ 15,821  37  % 23  CRE 46,326  56  % 39  25,096  59  % 33  Construction and land development 155  NM 1  1,503  3  % 2  Residential real estate 8,340  10  % 5  258  1  % 1  Consumer 9  NM 4  9  NM 4  Total $ 82,809  100  % 68  $ 42,687  100  % 63  The following table summarizes the changes in nonperforming loans:  Year ended December 31, ($ in thousands) 2025 2024 Nonperforming loans, beginning of period $ 42,687  $ 43,728  Additions to nonaccrual loans 178,029  55,747  Charge-offs (34,516) (21,874) Principal payments (26,845) (29,000) Moved to OREO (76,546) (5,914) Nonperforming loans, end of period $ 82,809  $ 42,687  Nonperforming loans at December 31, 2025 increased $40.1 million, or 94%, when compared to December 31, 2024. The addition to nonperforming loans during 2025 was primarily related to seven real estate loans to special purpose entities (each an “SPE Borrower”) affiliated with two commercial banking relationships in Southern California that share some common ownership. Litigation resulting from a business dispute between the owners of the entities resulted in all of the SPE Borrowers filing bankruptcy in the first quarter 2025, which was subsequently dismissed. In the fourth quarter 2025, the Company foreclosed on six of the seven properties serving as collateral for the loans. The six properties were transferred to OREO at fair market value, less selling costs. Based on each individual property’s fair value, a net charge-off of $4.0 million and a gain on transfer of $6.2 million was recorded. The seventh property with a book value of $4.0 million was foreclosed on in the first quarter of 2026. The following table provides a summary of the six properties foreclosed in 2025 by collateral type: ($ in thousands) Fair market value, less selling costs Carrying value(1) Charge-off Gain CRE - investor owned: Multifamily $ 13,240  $ 17,209  $ 3,969  $ —  Mixed use 49,760  47,694  —  2,066  Total CRE - investor owned $ 63,000  $ 64,903  $ 3,969  $ 2,066  Residential real estate: Duplex $ 3,520  $ 1,953  $ —  $ 1,567  Condominiums 6,960  4,413  —  2,547  Total residential real estate 10,480  6,366  —  4,114  Total $ 73,480  $ 71,269  $ 3,969  $ 6,180  (1) Includes accrued interest. 49 Other than these foreclosures, the increase in nonperforming loans during 2025 was driven primarily by net charge-offs of $24.3 million and a relationship with two loans totaling $28.0 million that went on nonaccrual. These loans are well-secured with real estate collateral and the Company expects to collect the full value of the outstanding loans. Subsequent to December 31, 2025, $17.5 million in nonperforming loans were fully paid off in the first quarter of 2026. OREO The following table summarizes the changes in OREO: Year ended December 31, ($ in thousands) 2025 2024 OREO, beginning of period $ 3,955  $ 5,736  Additions 84,905  6,559  Changes in valuation allowance —  (156) Sales (7,316) (8,184) OREO, end of period $ 81,544  $ 3,955  Investment Securities At December 31, 2025, our portfolio of investment securities was $3.7 billion, or 22% of total assets, compared to $2.8 billion, or 18% of total assets as of December 31, 2024. The portfolio is comprised of both available-for-sale and held-to-maturity securities. The table below sets forth the carrying value of investment securities, excluding the ACL: December 31, 2025 2024 ($ in thousands) Amount % Amount % Obligations of U.S. Government sponsored enterprises $ 182,572  4.9  % $ 276,040  9.9  % Obligations of states and political subdivisions 1,492,904  40.0  % 1,168,256  41.9  % Agency mortgage-backed securities 1,753,150  47.0  % 1,075,306  38.5  % U.S. Treasury Bills 170,984  4.6  % 128,893  4.6  % Corporate debt securities 130,527  3.5  % 142,967  5.1  % Total $ 3,730,137  100.0  % $ 2,791,462  100.0  % The ACL on held-to-maturity debt securities was $0.1 million and $0.3 million at December 31, 2025 and 2024, respectively. The Company had no debt securities classified as trading at December 31, 2025 or December 31, 2024. The following table summarizes contractual maturity and tax-equivalent yields on the investment portfolio at December 31, 2025:  Within 1 year  1 to 5 years  5 to 10 years  Over 10 years  Total ($ in thousands) Amount Yield Amount Yield Amount Yield Amount Yield Amount Yield Obligations of U.S. Government-sponsored enterprises $ 115,204  1.4  % $ 18,246  2.4  % $ 40,511  4.2  % $ 8,611  2.2  % $ 182,572  2.2  % Obligations of states and political subdivisions 8,618  2.9  % 31,266  3.5  % 504,195  3.4  % 948,825  4.3  % 1,492,904  4.0  % Agency mortgage-backed securities 4,489  3.1  % 15,363  2.6  % 89,323  4.0  % 1,643,975  4.3  % 1,753,150  4.3  % U.S. Treasury Bills 130,439  3.7  % 40,545  2.9  % —  —  % —  —  % 170,984  3.5  % Corporate debt securities —  —  % 114,587  3.4  % 15,940  5.8  % —  —  % 130,527  3.7  % Total $ 258,750  2.6  % $ 220,007  3.2  % $ 649,969  3.6  % $ 2,601,411  4.3  % $ 3,730,137  3.9  % 50 Yields on tax-exempt securities are computed on a taxable equivalent basis using a tax rate of 25.1%. Actual maturities can differ from contractual maturities, as borrowers may have the right to call or repay obligations with or without prepayment penalties. The following table details the balance of FHLB capital stock and other investments. Other investments consist primarily of common stock investments related to our trust preferred securities, community development funds, and investments in private equity funds, primarily SBICs. These investments do not have a stated maturity. December 31, 2025 2024 ($ in thousands) Amount % Amount % FHLB capital stock $ 9,351  11.6  % $ 8,704  12.0  % Other investments 71,533  88.4  % 64,080  88.0  % Total $ 80,884  100.0  % $ 72,784  100.0  % Deposits The following table shows the breakdown of deposits by type: December 31, $ Increase (decrease) % Increase (decrease) ($ in thousands) 2025 2024 2025 vs. 2024 2025 vs. 2024 Noninterest-bearing demand accounts $ 4,874,115  $ 4,484,072  $ 390,043  8.7  % Interest-bearing demand accounts 3,537,334  3,175,292  362,042  11.4  % Money market accounts 3,991,110  3,564,063  427,047  12.0  % Savings accounts 537,400  553,461  (16,061) (2.9) % Certificates of deposit: Brokered 721,977  484,588  237,389  49.0  % Customer 947,406  885,016  62,390  7.0  % Total deposits $ 14,609,342  $ 13,146,492  $ 1,462,850  11.1  % Noninterest-bearing deposits / Total deposits 33  % 34  % Total deposits increased $1.5 billion primarily due to organic deposit growth, as well as $609.5 million of deposits from the Branch Acquisition. Brokered certificates of deposit increased $237.4 million, to $722.0 million at December 31, 2025. Brokered certificates of deposit are used for term liquidity purposes in place of FHLB borrowings. The brokered certificates of deposit balance has a weighted average cost of 3.98% and a weighted average remaining term of six months at December 31, 2025. The Company has a deposit vertical portfolio focusing primarily on property management, community associations, and legal industry and escrow services. These deposits totaled $3.8 billion and $3.4 billion at the end of 2025 and 2024, respectively. 51 The following table shows the average balance and average rate of the Company’s deposits by type: Year ended December 31, 2025 2024 2023 ($ in thousands) Average Balance Average Rate Paid Average Balance Average Rate Paid Average Balance Average Rate Paid Noninterest-bearing demand accounts $ 4,525,761  —  % $ 4,042,368  —  % $ 4,131,163  —  % Interest-bearing demand accounts 3,311,368  2.08  % 3,033,616  2.54  % 2,559,238  1.84  % Money market accounts 3,730,110  3.04  % 3,494,497  3.65  % 3,043,794  3.05  % Savings accounts 535,021  0.14  % 567,147  0.22  % 668,368  0.15  % Certificates of deposit: Brokered 654,786  4.34  % 519,279  4.73  % 557,761  4.44  % Customer 878,822  3.39  % 851,730  4.01  % 640,790  2.81  % Total interest-bearing deposits $ 9,110,107  2.65  % $ 8,466,269  3.13  % $ 7,469,951  2.46  % Total average deposits $ 13,635,868  1.77  % $ 12,508,637  2.12  % $ 11,601,114  1.58  % Average total deposits were $13.6 billion for the year ended December 31, 2025, an increase of $1.1 billion, or 9%, from December 31, 2024. The increase in 2025 was primarily due to acquired deposits related to the Branch Acquisition, and organic growth in noninterest-bearing demand accounts, interest-bearing demand accounts, and money market accounts. The following table sets forth the maturities of estimated uninsured certificates of deposit as of December 31, 2025. Uninsured deposits are amounts estimated to exceed the FDIC deposit insurance limit and are not subject to any federal or state insurance program. ($ in thousands) Total Three months or less $ 147,492  Over three through six months 71,333  Over six through twelve months 61,779  Over twelve months 9,248  Total $ 289,852  Estimated uninsured deposits totaled $5.1 billion, including $289.9 million of certificates of deposit, as of December 31, 2025, and $4.5 billion as of December 31, 2024. Estimated uninsured deposits include $0.4 billion and $0.5 billion of balances that are collateralized or secured with third party insurance at December 31, 2025 and 2024, respectively. Stockholders’ equity Stockholders’ equity totaled $2.0 billion at December 31, 2025, an increase of $215.4 million, or 12%, from December 31, 2024. Significant activity during the year ended December 31, 2025 included the following: •Increase from net income of $201.4 million; •Net increase in fair value of available-for-sale securities and cash flow hedges of $62.1 million; •Decrease from dividends paid on common stock of $45.1 million and preferred stock of $3.8 million; and •Decrease from common stock repurchases of $14.1 million, pursuant to the Company’s publicly-announced stock repurchase program. 52 Liquidity and Capital Resources Liquidity The objective of liquidity management is to ensure we have the ability to generate sufficient cash or cash equivalents in a timely and cost-effective manner to meet our commitments as they become due. Typical demands on liquidity are changes in deposit levels, maturing time deposits which are not renewed, and fundings under credit commitments to clients. Funds are available from a number of sources, such as the core deposit base and loan and security repayments and maturities. Liquidity is provided from lines of credit with the FHLB, the Federal Reserve, and correspondent banks; the ability to acquire large and brokered deposits; sales of the securities portfolio; and the ability to sell loan participations to other banks and loans on the secondary market. These alternatives are an important part of our liquidity plan and provide flexibility and efficient execution of the asset-liability management strategy. The Company’s Asset-Liability Management Committee oversees our liquidity position, the parameters of which are approved by the Bank’s Board of Directors. Our liquidity position is monitored daily. Our liquidity management framework includes measurement of several key elements, such as a loan to deposit ratio, a liquidity ratio, and a dependency ratio. The Company’s liquidity framework also incorporates contingency planning to assess the nature and volatility of funding sources and to determine alternatives to these sources. While core deposits and loan and investment repayments are principal sources of liquidity, funding diversification is another key element of liquidity management and is achieved by strategically varying depositor types, terms, funding markets, and instruments. Liquidity from assets is available primarily from cash balances and the investment portfolio. Cash and interest-bearing deposits with other banks totaled $681.9 million at December 31, 2025, compared to $764.2 million at December 31, 2024. The decrease in cash balances during 2025 is due to the deployment of liquidity into the investment portfolio. Investment securities are an important tool to the Company’s liquidity objectives. Securities totaled $3.7 billion at December 31, 2025, and included $1.7 billion pledged as collateral for deposits of public institutions, treasury, loan notes, and other requirements. The remaining $2.0 billion could be pledged or sold to enhance liquidity, if necessary. Available on- and off-balance sheet liquidity sources include the following items: ($ in thousands) December 31, 2025 Federal Reserve borrowing capacity $ 3,047,606  FHLB borrowing capacity 1,603,974  Unpledged securities 1,992,864  Federal funds lines (eight correspondent banks) 135,000  Cash and interest-bearing deposits 681,902  Holding company line of credit 25,000  Total $ 7,486,346  The Company also has a portfolio of SBA guaranteed loans, a portion of which could be sold in the secondary market to generate earnings and liquidity. The guaranteed portion of SBA loans totaling $78.2 million and $23.1 million were sold during 2025 and 2024, respectively. Liability funding sources are available to increase financial flexibility. In addition to amounts borrowed at December 31, 2025, the Company could borrow an additional $1.6 billion from the FHLB of Des Moines as of December 31, 2025 under blanket loan pledges and has additional real estate loans that could be pledged. The Company also has $3.0 billion available from the Federal Reserve under a pledged loan agreement. The Company also has unsecured federal funds lines with eight correspondent banks totaling $135 million as of December 31, 2025. 53 In the normal course of business, the Company enters into certain forms of off-balance sheet transactions, including unfunded loan commitments and letters of credit. These transactions are managed through the Company’s various risk management processes. Management considers both on-balance sheet and off-balance sheet transactions in its evaluation of the Company’s liquidity. The Company has $3.0 billion in unused commitments to extend credit as of December 31, 2025. While this commitment level would exhaust the majority the Company’s current liquidity resources, the nature of these commitments is such that the likelihood of funding them in the aggregate at any one time is low. At the holding company level, our primary funding sources are dividends and payments from the Bank and proceeds from the issuance of equity (i.e. stock option exercises, stock offerings) and debt instruments. The main use of this liquidity is to provide the funds necessary to pay dividends to stockholders, service debt, invest in subsidiaries as necessary, repurchase common stock and satisfy other operating requirements. In 2025, the holding company maintained a revolving line of credit for an aggregate amount up to $25 million, all of which was available at December 31, 2025. The line of credit has a one-year term that was renewed in February 2026, has an interest rate of one-month Term SOFR plus 185 basis points, and the annual unused commitment fee was 0.40%. The proceeds can be used for general corporate purposes. Strong capital ratios, credit quality and core earnings are essential to retaining cost-effective access to the wholesale funding markets. Deterioration in any of these factors could have a negative impact on the Company’s ability to access these funding sources and, as a result, these factors are monitored on an ongoing basis as part of the liquidity management process. The Bank is subject to regulations and, among other things, may be limited in its ability to pay dividends or transfer funds to the parent company. Accordingly, consolidated cash flows as presented in the consolidated statements of cash flows may not represent cash immediately available for the payment of cash dividends to the Company’s stockholders or for other cash needs. Through the normal course of operations, the Company has entered into certain contractual obligations and other commitments. Such obligations relate to funding operations through deposits or debt issuances, as well as leases for premises and equipment. As a financial services provider, the Company routinely enters into commitments to extend credit. While contractual obligations represent future cash requirements of the Company, a significant portion of commitments to extend credit may expire without being drawn upon. Such commitments are subject to the same credit policies and approval process accorded to loans made by the Company. The Company also enters into derivative contracts under which the Company either receives cash from or pays cash to counterparties depending on changes in interest rates. Derivative contracts are carried at fair value on the Consolidated Balance Sheet with the fair value representing the net present value of expected future cash receipts or payments based on market interest rates as of the balance sheet date. The fair value of these contracts changes daily as market interest rates change. For additional information on the Company’s contractual obligations and commitments, see the following footnotes in Item 8: “Note 6 – Leases,” “Note 7 – Derivative Financial Instruments,” “Note 11 – Debt,” and “Note 16 – Commitments and Contingent Liabilities.” Capital Resources The Company and the Bank are subject to various regulatory capital requirements administered by the state and federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the financial statements and results of operations of the Company. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and its bank affiliate must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The banking affiliate’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. 54 Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the following table) of total and tier 1 capital to risk-weighted assets, and of tier 1 capital to average assets. To be categorized as “well-capitalized”, banks must maintain minimum capital ratios as noted in the table below. As of December 31, 2025, and December 31, 2024, the Company and the Bank met all capital adequacy requirements to which they are subject. The Company and the Bank met the definition of “well-capitalized” at each of December 31, 2025 and 2024. Refer to “Item 8. Note 13 – Regulatory Capital” for a summary of our risk-based capital and leverage ratios. The following table summarizes the Company’s and Bank’s capital ratios: December 31, 2025 December 31, 2024 ($ in thousands) EFSC Bank EFSC Bank To Be Well-Capitalized Minimum Ratio with CCB CET1 Capital to Risk Weighted Assets 11.6  % 11.9  % 11.8  % 12.4  % 6.5  % 7.0  % Tier 1 Capital to Risk Weighted Assets 12.8  % 11.9  % 13.1  % 12.4  % 8.0  % 8.5  % Total Capital to Risk Weighted Assets 13.9  % 13.0  % 14.6  % 13.4  % 10.0  % 10.5  % Leverage Ratio (Tier 1 Capital to Average Assets) 10.5  % 9.7  % 11.1  % 10.5  % 5.0  % N/A Tangible common equity to tangible assets1 9.07  % 9.05  % CET1 capital $ 1,583,989  $ 1,623,652  $ 1,505,162  $ 1,578,293  Tier 1 capital 1,749,635  1,623,711  1,670,810  1,578,353  Total risk-based capital 1,891,444  1,765,520  1,864,334  1,708,626  1 Not a required regulatory capital ratio At December 31, 2024, total regulatory capital included $63.3 million of subordinated debentures that were issued in 2020 at a fixed rate of 5.75%. Beginning June 1, 2025, the subordinated debentures bore interest at a floating rate per annum equal to a benchmark rate of three-month term SOFR (as defined in the Indenture, dated May 21, 2020, between the Company and U.S. Bank National Association, as trustee, and subsequent First Supplemental Indenture), plus 566 basis points. On September 2, 2025, the Company redeemed the 2030 Notes funded through the issuance of a $63.3 million senior note at a rate of one-month Term SOFR plus a spread of 250 basis points. Prior to being redeemed, the 2030 Notes bore interest at a floating rate then equal to 9.98% per annum, payable quarterly in arrears on March 1, June 1, September 1 and December 1 of each year. The Company believes the tangible common equity and regulatory capital ratios are important measures of capital strength. The tangible common equity to tangible assets ratio is considered a non-GAAP measure. The tables included in this MD&A section under the caption “Use of Non-GAAP Financial Measures” reconcile these ratios to U.S. GAAP.  Risk Management Market risk arises from exposure to changes in interest rates and other relevant market rate or price risk. The Company faces market risk in the form of interest rate risk through transactions other than trading activities. Market risk from these activities, in the form of interest rate risk, is measured and managed through a number of methods. The Company uses financial modeling techniques to measure interest rate risk. These techniques measure the sensitivity of future earnings due to changing interest rate environments. Guidelines established by the Bank’s Asset/Liability Management Committee and approved by the Bank’s Board of Directors are used to monitor exposure of earnings at risk. General interest rate movements are used to develop sensitivity as management believes it has no primary exposure to a specific point on the yield curve. These limits are based on the Company’s exposure to immediate and sustained parallel rate movements, either upward or downward. The Company does not have any direct market risk from commodity exposures. 55 Interest Rate Risk  Our interest rate risk management practices are aimed at optimizing net interest income, while guarding against deterioration that could be caused by certain interest rate scenarios. Interest rate sensitivity varies with different types of interest-earning assets and interest-bearing liabilities. We attempt to maintain interest-earning assets, comprised primarily of both loans and investments, and interest-bearing liabilities, comprised primarily of deposits, maturing or repricing in similar time horizons in order to manage any impact from market interest rate changes according to our risk tolerance. The Company uses an earnings simulation model to measure earnings sensitivity to changing rates. The Company determines the sensitivity of its short-term future earnings to a hypothetical plus or minus 100 to 300 basis point parallel rate shock through the use of simulation modeling. The simulation of earnings includes the modeling of the balance sheet as an ongoing entity. Future business assumptions involving administered rate products, prepayments for future rate-sensitive balances, and the reinvestment of maturing assets and liabilities are included. These items are then modeled to project net interest income based on a hypothetical change in interest rates. The resulting net interest income for the next 12-month period is compared to the net interest income amount calculated using flat rates. This difference represents the Company’s earnings sensitivity to a positive or negative parallel rate shock. The following table summarizes the projected impact of interest rate shocks on net interest income: Annual % change in net interest income At December 31, Rate Shock 2025 2024 + 300 bp 10.1% 7.9% + 200 bp 6.9% 5.4% + 100 bp 3.6% 2.7%  - 100 bp (4.1)% (3.0)%  - 200 bp (7.9)% (6.0)%  - 300 bp (11.0)% (8.5)% In addition to the rate shocks shown in the table above, the Company models net interest income under various dynamic interest rate scenarios. In general, changes in interest rates are positively correlated with changes in net interest income. The Company occasionally uses interest rate derivative instruments as an asset/liability management tool to hedge mismatches in interest rate exposure indicated by the net interest income simulation described above. They are used to modify the Company’s exposures to interest rate fluctuations and provide more stable spreads between loan yields and the rate on their funding sources. At December 31, 2025, the Company had derivative contracts to manage interest rate risk, including $400.0 million in notional value on derivatives to hedge the cash flows on floating rate loans and $32.1 million in notional value on derivatives on floating rate debt. Derivative financial instruments are discussed in “Item 8. Note 7 – Derivative Financial Instruments.” The Company had $7.0 billion in variable rate loans as of December 31, 2025. Of these loans, $4.8 billion have an interest rate floor and nearly all of those loans were at or above the floor. Variable rate loans include $2.7 billion indexed to the prime rate, $3.5 billion are indexed to SOFR, and $0.8 billion indexed to other rates. Changes in interest rates will also have an effect on noninterest expense. Certain deposit accounts receive an earnings credit that provides a reimbursement for costs clients incur on the accounts. As interest rates increase, the amount available for reimbursement also increases, resulting in an increase to noninterest expense. Conversely, a decrease in interest rates would reduce the amount available for reimbursement and decrease noninterest expense. 56 Critical Accounting Policies and Estimates The following accounting policies are considered most critical to the understanding of the Company’s financial condition and results of operations. These critical accounting policies require management’s most difficult, subjective and complex judgments about matters that are inherently uncertain. Because these estimates and judgments are based on current circumstances, they may change over time or prove to be inaccurate based on experience. In the event different assumptions or conditions were to prevail, and depending upon the severity of such changes, the possibility of a materially different financial condition and/or results of operations could reasonably be expected. The impact and any associated risks related to our critical accounting policies on our business operations are described throughout “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” where such policies affect our reported and expected financial results. For a detailed discussion on the application of these and other accounting policies, see “Item 8. Note 1 – Summary of Significant Accounting Policies.” The Company has prepared all of the consolidated financial information in this report in accordance with GAAP. The Company makes estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using loss experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. We adjust such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. There can be no assurances that actual results will not differ from those estimates. ACL The Company maintains separate allowances for funded loans, unfunded loans, and held-to-maturity securities, collectively referred to as the ACL. The ACL is a valuation account to adjust the cost basis to the amount expected to be collected, based on management’s experience, current conditions, and reasonable and supportable forecasts. For purposes of determining the allowance for funded and unfunded loans, the portfolios are segregated into pools that share similar risk characteristics that are then further segregated by credit grades. Loans that do not share similar risk characteristics are evaluated on an individual basis and are not included in the collective evaluation. The Company estimates the amount of the allowance based on loan loss experience, adjusted for current and forecasted economic conditions, including unemployment, changes in GDP, and commercial and residential real estate prices. The Company’s forecast of economic conditions uses internal and external information and considers a weighted average of a baseline, upside, and downside scenarios. Because economic conditions can change and are difficult to predict, the anticipated amount of estimated loan defaults and losses, and therefore the adequacy of the allowance, could change significantly and have a direct impact on the Company’s credit costs. The Company’s ACL on loans was $140.0 million at December 31, 2025 based on the weighting of the different economic scenarios. As a hypothetical example, if the Company had only used the upside scenario, the allowance would have decreased $29.8 million. Conversely, the allowance would have increased $46.9 million using only the downside scenario. 57 Income Taxes Management uses certain assumptions and estimates in determining income taxes payable or refundable for the current year, deferred income tax assets and liabilities and income tax expense. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. If current available information raises doubt as to the realization of the deferred tax assets, a valuation allowance may be established. We consider the determination of this valuation allowance to be a critical accounting policy because of the need to exercise significant judgment in evaluating the amount and timing of recognition of deferred tax liabilities and assets, including projections of future taxable income. These judgments and estimates are reviewed on a continual basis as regulatory and business factors change. A valuation allowance for deferred tax assets may be required in the future if the amounts of taxes recoverable through loss carry backs decline, if we project lower levels of future taxable income, or we project lower levels of tax planning strategies. Such valuation allowance would be established through a charge to income tax expense that would adversely affect our operating results. Effects of New Accounting Pronouncements See “Item 8. Note 1 – Summary of Significant Accounting Policies – Recent Accounting Pronouncements” for information on recent accounting pronouncements and their impact, if any, on our consolidated financial statements. Use of Non-GAAP Financial Measures The Company’s accounting and reporting policies conform to U.S. GAAP and the prevailing practices in the banking industry. However, the Company provides other financial measures, such as adjusted return on average assets, adjusted return on average common equity, return on average tangible common equity, adjusted return on average tangible common equity, tangible book value per common share, tangible common equity to tangible assets, pre-provision net revenue, pre-provision net revenue return on average assets, core efficiency ratio, and adjusted effective tax rate, in this report that are considered “non-GAAP financial measures.” Generally, a non-GAAP financial measure is a numerical measure of a company’s financial performance, financial position, or cash flows that exclude (or include) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP. The Company considers its adjusted return on average assets, adjusted return on average common equity, return on average tangible common equity, adjusted return on average tangible common equity, tangible book value per common share, tangible common equity to tangible assets, pre-provision net revenue, pre-provision net revenue return on average assets, core efficiency ratio, and adjusted effective tax rate, collectively “core performance measures,” presented in this report as important measures of financial performance, even though they are non-GAAP measures, as they provide supplemental information by which to evaluate the impact of certain non-comparable items, and the Company’s operating performance on an ongoing basis. Core performance measures exclude certain other income and expense items, such as acquisition costs, core conversion expenses, FDIC special assessment, net gain or loss on OREO, and net gain or loss on the sale of investment securities, that the Company believes to be not indicative of or useful to measure the Company’s operating performance on an ongoing basis. The attached tables contain a reconciliation of these core performance measures to the GAAP measures. The Company believes that tangible common equity to tangible assets provides useful information to investors about the Company’s capital strength even though it is considered to be a non-GAAP financial measure and is not part of the regulatory capital requirements to which the Company is subject. 58 The Company believes these non-GAAP measures and ratios, when taken together with the corresponding GAAP measures and ratios, provide meaningful supplemental information regarding the Company’s performance and capital strength. The Company’s management uses, and believes investors benefit from referring to, these non-GAAP measures and ratios in assessing the Company’s operating results and related trends and when 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. In the following tables, the Company has provided a reconciliation of, where applicable, the most comparable GAAP financial measures and ratios to the non-GAAP financial measures and ratios, or a reconciliation of the non-GAAP calculation of the financial measure for the periods indicated. Reconciliations of Non-GAAP Financial Measures Pre-Provision Net Revenue (PPNR) and Pre-Provision Net Revenue Return on Average Assets (PPNR ROAA) Year ended December 31, ($ in thousands) 2025 2024 2023 Net interest income (GAAP) $ 626,738  $ 568,096  $ 562,592  Noninterest income (GAAP) 113,123  69,703  68,725  FDIC special assessment (652) 625  2,412  Core conversion expense —  4,868  —  Acquisition costs 3,675  —  —  Less net gain on sale of investment securities 49  —  601  Less net gain on OREO 6,255  3,089  187  Less insurance recoveries1 32,112  —  —  Less noninterest expense (GAAP) 429,807  385,047  348,186  PPNR (non-GAAP) $ 274,661  $ 255,156  $ 284,755  Average assets $ 16,199,003  $ 14,841,690  $ 13,805,236  PPNR ROAA (non-GAAP) 1.70  % 1.72  % 2.06  % 1 Represents anticipated proceeds from a pending insurance claim related to a third quarter 2025 solar tax credit recapture event. Tangible Common Equity, Tangible Book Value per Common Share, and Tangible Common Equity to Tangible Assets At December 31, (in thousands, except per share data) 2025 2024 2023 Stockholders' equity (GAAP) $ 2,039,386  $ 1,824,002  $ 1,716,068  Less preferred stock 71,988  71,988  71,988  Less goodwill 416,968  365,164  365,164  Less intangible assets 21,175  8,484  12,318  Tangible common equity (non-GAAP) $ 1,529,255  $ 1,378,366  $ 1,266,598  Common shares outstanding 36,965  36,988  37,416  Tangible book value per share (non-GAAP) $ 41.37  $ 37.27  $ 33.85  Total assets (GAAP) $ 17,300,884  $ 15,596,431  $ 14,518,590  Less goodwill 416,968  365,164  365,164  Less intangible assets 21,175  8,484  12,318  Tangible assets (non-GAAP) $ 16,862,741  $ 15,222,783  $ 14,141,108  Tangible common equity to tangible assets (non-GAAP) 9.07  % 9.05  % 8.96  % 59 Adjusted Return on Average Common Equity, Return on Average Tangible Common Equity (ROATCE) and Adjusted Return on Average Assets (ROAA) Year ended December 31, ($ in thousands) 2025 2024 2023 Average stockholder’s equity (GAAP) $ 1,939,494  $ 1,784,175  $ 1,623,121  Less average preferred stock 71,988  71,988  71,988  Less average goodwill 377,690  365,164  365,164  Less average intangible assets 8,238  10,329  14,531  Average tangible common equity (non-GAAP) $ 1,481,578  $ 1,336,694  $ 1,171,438  Net income (GAAP) $ 201,374  $ 185,266  $ 194,059  FDIC special assessment (after tax) (488) 470  1,814  Core conversion expense (after tax) —  3,661  —  Acquisition costs (after tax) 2,753  —  —  Less net gain on sale of investment securities (after tax) 37  —  452  Less net gain on OREO (after tax) 4,685  2,323  141  Net income adjusted (non-GAAP) $ 198,917  $ 187,074  $ 195,280  Less preferred stock dividends 3,750  3,750  3,750  Net income available to common stockholders adjusted (non-GAAP) $ 195,167  $ 183,324  $ 191,530  Return on average common equity (GAAP) 10.58  % 10.60  % 12.27  % Adjusted return on average common equity (non-GAAP) 10.45  % 10.71  % 12.35  % ROATCE (non-GAAP) 13.34  % 13.58  % 16.25  % Adjusted ROATCE (non-GAAP) 13.17  % 13.71  % 16.35  % Average assets $ 16,199,003  $ 14,841,690  $ 13,805,236  Return on average assets (GAAP) 1.24  % 1.25  % 1.41  % Adjusted return on average assets (non-GAAP) 1.23  % 1.26  % 1.41  % 60 Core Efficiency Ratio Year ended December 31, ($ in thousands) 2025 2024 2023 Net interest income (GAAP) $ 626,738  $ 568,096  $ 562,592  Tax-equivalent adjustment 11,735  8,445  8,079  Net interest income - FTE (non-GAAP) 638,473  576,541  570,671  Noninterest income (GAAP) 113,123  69,703  68,725  Less insurance recoveries1 32,112  —  —  Less net gain on sale of investment securities 49  —  601  Less net gain on OREO 6,255  3,089  187  Core revenue (non-GAAP) $ 713,180  $ 643,155  $ 638,608  Noninterest expense (GAAP) $ 429,807  $ 385,047  $ 348,186  Less amortization on intangibles 3,724  3,834  4,601  Less core conversion expense —  4,868  —  Less FDIC special assessment (652) 625  2,412  Less acquisition costs 3,675  —  —  Core noninterest expense (non-GAAP) $ 423,060  $ 375,720  $ 341,173  Core efficiency ratio (non-GAAP) 59.32  % 58.42  % 53.42  % 1 Represents anticipated proceeds from a pending insurance claim related to a third quarter 2025 solar tax credit recapture event. Adjusted Effective Tax Rate Year ended December 31, ($ in thousands) 2025 2024 Income before income tax expense (GAAP) $ 283,717  $ 231,244  Less insurance recoveries1 32,112  —  Adjusted income before income tax expense (non-GAAP) $ 251,605  $ 231,244  Income tax expense (GAAP) $ 82,343  $ 45,978  Less tax credit recapture and tax applied to insurance recoveries1 32,112  —  Adjusted income tax expense (non-GAAP) $ 50,231  $ 45,978  Effective tax rate (GAAP) 29.0  % 19.9  % Adjusted effective tax rate (non-GAAP) 20.0  % 19.9  % 1Represents $32.1 million of anticipated proceeds from a pending insurance claim related to a third quarter 2025 solar tax credit recapture event included in noninterest income, and $24.1 million of tax liability related to the anticipated recapture plus approximately $8.0 million of estimated tax liability related to the anticipated proceeds from the pending insurance claim included in income tax expense. 61