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Executive summary

• Net income for Q1 2026 was $54.7 million ($1.60 per diluted share), up from $51.2 million ($1.49) in Q4 2025 and $45.1 million ($1.30) in Q1 2025.

• Core earnings (pre-tax, pre-provision, excluding non-recurring items) were $66.3 million, up from $58.6 million year-over-year.

• Core deposits represented 89% of total deposits at quarter-end, supporting a strong funding base.

• Strategic investments and improved net interest margin contributed to earnings growth.

• Quarterly cash dividend increased by 4% to $0.52 per share, payable May 15, 2026.

Financial highlights

• Revenue from core operations rose to $169.3 million, a 6% increase year-over-year.

• Net interest margin rose to 4.11%, up from 4.03% in Q4 2025 and 3.92% in Q1 2025.

• Efficiency ratio improved to 60.60% from 62.11% in Q4 2025; adjusted ratio at 59.45%.

• Return on average assets was 1.37% for the quarter.

• Allowance for credit losses-loans was $160.4 million (1.37% of loans), covering 353% of non-performing loans.

Outlook and guidance

• Net interest margin expected to remain flat in Q2, with potential expansion in the second half as funding costs decline and loan yields rise.

• Loan growth guidance remains mid-single digits for 2026, with payoffs expected to slow.

• Management emphasizes scalable growth through acquisitions and maintaining a moderate risk profile.

• Focus on growing revenue, protecting net interest margin, and spending carefully.

• Expenses anticipated to rise through the year due to salary increases and inflation.