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Executive summary

• Q3 net income was $47.7M, or $1.36 per diluted share, versus $48.9M/$1.43 in Q2 and $53.5M/$1.54 YoY; results included $5.2M of acquisition-related costs and a $2.1M securities-sale loss.

• Core revenue reached $179.1M, up 6% YoY, while adjusted pre-tax, pre-provision earnings were $68.6M; organic loan and deposit growth accompanied the Pacific Financial acquisition.

• Pacific Financial closed Sept. 1, adding $1.29B in assets, $1.14B in deposits and $756.9M in net loans.

Financial highlights

• Q3 net interest income was $161.9M, up from $153.7M in Q2 and $150.0M YoY; tax-equivalent NIM was 4.14%, up 1 bp QoQ and 16 bps YoY.

• Q3 GAAP revenue was $177.3M versus $170.7M YoY; adjusted revenue was $179.1M versus $168.7M.

• Non-interest income was $15.4M, down from $18.2M QoQ, including the $2.1M acquired-securities sale loss; non-interest expense was $115.7M, including $5.2M of merger costs.

• Q3 provision for credit losses was $2.8M, including $1.8M for loans and $1.0M for unfunded commitments; 9M provision was $5.8M versus $10.6M YoY.

• Nine-month net income was $151.3M, or $4.39 diluted EPS, versus $144.1M and $4.15 in 9M 2025.

Outlook and guidance

• Q4 NIM is expected to expand as ~25% of loans and acquired assets reprice; deposit-cost pressure is expected to persist.

• Loan growth is expected at a mid-single-digit pace through year-end 2026 and into 2027; higher rates may weigh on demand despite healthy commercial and CRE pipelines.

• 2027 NIM outlook depends on Fed policy: modest expansion under stable or higher rates, versus flat to moderate compression if rates decline.

• Pacific Financial synergies target 40%: 10% achieved, another 20% expected from Jan. 1, 2027, and the final 10% by mid-2027; operating-efficiency investments are intended to support positive operating leverage.