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Horizon Bancorp
Horizon Bancorp, Inc. Reports First Quarter 2026 Results, Highlighted by Continued Peer Leading Profitability Metrics and Solid Capital Growth
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Horizon Bancorp, Inc. Reports First Quarter 2026 Results, Highlighted by Continued Peer Leading Profitability Metrics and Solid Capital Growth

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MICHIGAN CITY, Ind, April 22, 2026 (GLOBE NEWSWIRE) -- (NASDAQ GS: HBNC) -- Horizon Bancorp, Inc. (“Horizon” or the “Company”), the parent company of Horizon Bank (the “Bank”), announced its unaudited financial results for the three months ended March 31, 2026.

“Horizon’s first quarter results demonstrate the consistency of our profitability profile and the strength of Horizon’s high quality community banking model. Annualized returns on average assets again exceeded 1.60% and the net interest margin continued to be durable at 4.29%. Notably, our strategic focus on core deposit gathering yielded significant results during the quarter, delivering 11% annualized growth, led by 23% annualized growth in non-interest-bearing balances", President and CEO, Thomas Prame stated. "We are encouraged by the stability and predictability we see in our financial performance, driving significant value for our shareholders, despite what has become a volatile macro-economic environment. Our 2026 outlook is unchanged, which should yield solid balance sheet growth coupled with consistent, top-tier profitability metrics. The commercial loan engine continues to produce disciplined, high-quality growth, funded by relationship-based deposits across our attractive footprint. Within the quarter, credit quality remained excellent, expenses were well managed and capital generation continues to be a strength. Most importantly, our long-term shareholder value proposition remained steadfast, aimed at delivering a durable profitability profile, disciplined organic growth and peer leading capital generation".

Net income for the three months ended March 31, 2026 was $26.2 million, or $0.51 per diluted share, compared to net income of $26.9 million, or $0.53, for the fourth quarter of 2025 and net income of $23.9 million, or $0.54 per diluted share, for the first quarter of 2025, which included the $7.0 million pre-tax gain on the sale of the mortgage warehouse business.

First Quarter 2026 Highlights

  • Durability of top-tier performance metrics are reflective of the strong performance of Horizon’s community banking model. The Company generated a return on average assets was 1.62%, consistent with the fourth quarter of 2025, and a return on average tangible common equity of 19.02%.

  • Net interest income of $62.2 million was up 19.1% compared with $52.3 million in the year ago period. The net interest margin, on a fully taxable equivalent ("FTE") basis1, remained strong at 4.29%. These results were consistent with the three months ended December 31, 2025, and significantly higher than the 3.04% reported in the comparable year ago period.

  • Excellent growth in total deposits, up $146.9 million, or 11.3% annualized, highlighted by an increase of $60.8 million in non-interest-bearing deposits, or 22.8% annualized. Additionally, total interest-bearing deposit costs declined by another 7 basis points from the prior quarter. The strong quarter in deposits provides ample funding for loan growth in subsequent quarters, but did result in elevated interest-earning cash balances during the first quarter. The elevated cash balance dampened the Q1 2026 net interest margin by about 4 basis points.

  • Commercial loans increased $34.2 million, or 4.0% annualized, while total loans were stable from year end 2025. Management maintained disciplined pricing on new mortgage originations, electing to not leverage the balance sheet into lower yielding residential mortgages in Q1. Lending activity exiting the quarter provides confidence in future loan growth expectations and new production spreads.

  • Credit quality remained strong, with annualized net charge offs of 0.05% of average loans during the first quarter. Non-performing assets remain well within expected and historical ranges, with non-performing assets to total assets of 0.67%.

  • Expenses for the first quarter were well managed at $40.7 million, reflecting a disciplined approach to the continuous review of staffing models and variable expenses.

___________________________
1 Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

 

 

 

Financial Highlights

 

(Dollars in Thousands Except Share and Per Share Data and Ratios)

 

Three Months Ended

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

2026

 

2025

 

2025

 

2025

 

2025

Income statement:

 

 

 

 

 

 

 

 

 

Net interest income

$

62,240

 

 

$

63,476

 

 

$

58,386

 

 

$

55,355

 

 

$

52,267

 

Provision for credit losses

 

391

 

 

 

1,630

 

 

 

(3,572

)

 

 

2,462

 

 

 

1,376

 

Non-interest income (loss)

 

11,243

 

 

 

11,463

 

 

 

(295,334

)

 

 

10,920

 

 

 

16,499

 

Non-interest expense

 

40,747

 

 

 

40,615

 

 

 

52,952

 

 

 

39,417

 

 

 

39,306

 

Income tax expense (benefit)

 

6,177

 

 

 

5,773

 

 

 

(64,338

)

 

 

3,752

 

 

 

4,141

 

Net Income (Loss)

$

26,168

 

 

$

26,921

 

 

$

(221,990

)

 

$

20,644

 

 

$

23,943

 

 

 

 

 

 

 

 

 

 

 

Per share data:

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per share

$

0.51

 

 

$

0.53

 

 

$

(4.69

)

 

$

0.47

 

 

$

0.55

 

Diluted earnings (loss) per share

 

0.51

 

 

 

0.53

 

 

 

(4.69

)

 

 

0.47

 

 

 

0.54

 

Cash dividends declared per common share

 

0.16

 

 

 

0.16

 

 

 

0.16

 

 

 

0.16

 

 

 

0.16

 

Book value per common share

 

13.69

 

 

 

13.50

 

 

 

12.96

 

 

 

18.06

 

 

 

17.72

 

Market value - high

 

18.68

 

 

 

18.47

 

 

 

16.88

 

 

 

15.88

 

 

 

17.76

 

Market value - low

 

15.57

 

 

 

15.04

 

 

 

15.01

 

 

 

12.92

 

 

 

15.00

 

Weighted average shares outstanding - Basic

 

50,987,426

 

 

 

50,975,693

 

 

 

47,311,642

 

 

 

43,794,490

 

 

 

43,777,109

 

Weighted average shares outstanding - Diluted

 

51,243,002

 

 

 

51,277,134

 

 

 

47,311,642

 

 

 

44,034,663

 

 

 

43,954,164

 

Common shares outstanding (end of period)

 

51,056,888

 

 

 

50,978,030

 

 

 

50,970,530

 

 

 

43,801,507

 

 

 

43,785,932

 

 

 

 

 

 

 

 

 

 

 

Key ratios:

 

 

 

 

 

 

 

 

 

Return on average assets

 

1.62

%

 

 

1.63

%

 

(12.07

)%

 

 

1.09

%

 

 

1.25

%

Return on average stockholders' equity

 

14.99

 

 

 

15.71

 

 

 

(120.37

)

 

 

10.49

 

 

 

12.44

 

Total equity to total assets

 

10.65

 

 

 

10.69

 

 

 

9.84

 

 

 

10.34

 

 

 

10.18

 

Total loans to deposit ratio

 

90.15

 

 

 

92.62

 

 

 

87.41

 

 

 

87.52

 

 

 

85.21

 

Allowance for credit losses to HFI loans

 

1.05

 

 

 

1.05

 

 

 

1.04

 

 

 

1.09

 

 

 

1.07

 

Annualized net charge-offs of average total loans(1)

 

0.05

 

 

 

0.08

 

 

 

0.07

 

 

 

0.02

 

 

 

0.07

 

Efficiency ratio

 

55.45

 

 

 

54.20

 

 

 

(22.35

)

 

 

59.47

 

 

 

57.16

 

 

 

 

 

 

 

 

 

 

 

Key metrics (Non-GAAP)(2)

 

 

 

 

 

 

 

 

 

Net FTE interest margin

 

4.29

%

 

 

4.29

%

 

 

3.52

%

 

 

3.23

%

 

 

3.04

%

Return on average tangible common equity

 

19.02

 

 

 

20.66

 

 

 

(155.03

)

 

 

13.24

 

 

 

15.79

 

Tangible common equity to tangible assets

 

8.39

 

 

 

8.38

 

 

 

7.60

 

 

 

8.37

 

 

 

8.19

 

Tangible book value per common share

$

10.52

 

 

$

10.32

 

 

$

9.76

 

 

$

14.32

 

 

$

13.96

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)Average total loans includes loans held for investment and held for sale.

(2)Non-GAAP financial metrics. See non-GAAP reconciliation included herein for the most directly comparable GAAP measures.

 

Income Statement Highlights

Net Interest Income

Net interest income was $62.2 million in the first quarter of 2026, compared to $63.5 million in the fourth quarter of 2025, driven by the continued strength of the Company's net FTE interest margin1, which remained consistent at 4.29% for the first quarter of 2026 and the fourth quarter of 2025. The margin's resilience is reflective of continued disciplined loan and deposit pricing, a favorable cash reinvestment profile and strong core deposit growth during the quarter.

Provision for Credit Losses

During the first quarter of 2026, the Company recorded a provision for credit losses of $0.4 million. This compares to a recorded provision for credit losses of $1.6 million during the fourth quarter of 2025, and $1.4 million during the first quarter of 2025. The decrease in the provision for credit losses during the first quarter of 2026 when compared with the fourth quarter of 2025 was primarily due to modest net loan growth and slight changes in the baseline economic outlook.

For the first quarter of 2026, net charge-offs were $0.6 million, or an annualized 0.05% of average loans outstanding, compared to net charge-offs of $1.0 million, or an annualized 0.08% of average loans outstanding for the fourth quarter of 2025, and net charge-offs of $0.9 million, or an annualized 0.07% of average loans outstanding, in the first quarter of 2025.

The Company’s allowance for credit losses as a percentage of period-end loans HFI was 1.05% at March 31, 2026, consistent with December 31, 2025, and down from 1.07% at March 31, 2025.

Non-Interest Income

For the Quarter Ended

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

(Dollars in Thousands)

2026

 

2025

 

2025

 

2025

 

2025

Non-interest (Loss) Income

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

$

3,524

 

 

$

3,341

 

 

$

3,474

 

 

$

3,208

 

 

$

3,208

 

Wire transfer fees

 

63

 

 

 

66

 

 

 

71

 

 

 

69

 

 

 

71

 

Interchange fees

 

3,373

 

 

 

3,445

 

 

 

3,510

 

 

 

3,403

 

 

 

3,241

 

Fiduciary activities

 

1,556

 

 

 

1,560

 

 

 

1,363

 

 

 

1,251

 

 

 

1,326

 

Gain (loss) on sale of investment securities

 

 

 

 

1

 

 

 

(299,132

)

 

 

 

 

 

(407

)

Gain on sale of mortgage loans

 

1,090

 

 

 

1,296

 

 

 

1,208

 

 

 

1,219

 

 

 

1,076

 

Mortgage servicing income net of impairment

 

337

 

 

 

352

 

 

 

351

 

 

 

375

 

 

 

385

 

Increase in cash value of bank owned life insurance

 

333

 

 

 

360

 

 

 

379

 

 

 

346

 

 

 

335

 

Other income (loss)

 

967

 

 

 

1,042

 

 

 

(6,558

)

 

 

1,049

 

 

 

7,264

 

Total non-interest (loss) income

$

11,243

 

 

$

11,463

 

 

$

(295,334

)

 

$

10,920

 

 

$

16,499

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-interest income was $11.2 million in the first quarter of 2026, compared to non-interest income of $11.5 million in the fourth quarter of 2025. The decrease in non-interest income of $0.2 million is primarily attributable to a decrease in gains on the sale of mortgage loans, due to reduced loan origination and sales volumes. The decrease was partially offset by an increase in seasonal service charges on deposit accounts of $0.2 million. All other components of non-interest income remained relatively stable quarter over quarter.

_________________________
1 Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

Non-Interest Expense

For the Quarter Ended

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

(Dollars in Thousands)

2026

 

2025

 

2025

 

2025

 

2025

Non-interest Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

$

23,187

 

 

$

21,895

 

 

$

22,698

 

 

$

22,731

 

 

$

22,414

 

Net occupancy expenses

 

4,197

 

 

 

3,718

 

 

 

3,321

 

 

 

3,127

 

 

 

3,702

 

Data processing

 

3,353

 

 

 

3,128

 

 

 

2,933

 

 

 

2,951

 

 

 

2,872

 

Professional fees

 

929

 

 

 

1,083

 

 

 

808

 

 

 

735

 

 

 

826

 

Outside services and consultants

 

2,764

 

 

 

3,035

 

 

 

3,844

 

 

 

3,278

 

 

 

3,265

 

Loan expense

 

1,219

 

 

 

1,183

 

 

 

1,237

 

 

 

1,231

 

 

 

689

 

FDIC insurance expense

 

1,023

 

 

 

1,251

 

 

 

1,345

 

 

 

1,216

 

 

 

1,288

 

Core deposit intangible amortization

 

675

 

 

 

706

 

 

 

706

 

 

 

816

 

 

 

816

 

Merger related expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

305

 

Prepayment penalties

 

 

 

 

 

 

 

12,680

 

 

 

 

 

 

 

Other losses

 

192

 

 

 

732

 

 

 

131

 

 

 

245

 

 

 

228

 

Other expense

 

3,208

 

 

 

3,884

 

 

 

3,249

 

 

 

3,087

 

 

 

2,901

 

Total non-interest expense

$

40,747

 

 

$

40,615

 

 

$

52,952

 

 

$

39,417

 

 

$

39,306

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-interest expense was $40.7 million in the first quarter of 2026, compared to $40.6 million in the fourth quarter of 2025. The slight increase was primarily driven by higher salaries and employee benefits of $1.3 million, largely reflecting increased benefit-related costs at the beginning of the year, and a $0.5 million seasonal increase in occupancy expense. These increases were partially offset by a $0.7 million reduction in other expenses, primarily due to lower marketing cost and decreased outside services and consulting expense. In addition, other losses declined by $0.5 million, as the prior quarter included the write-off of unamortized issuance costs related to the early redemption of the Company's subordinated notes due 2030. All other components of non-interest expense remained relatively stable quarter over quarter.

Income Taxes

Horizon recorded a net tax expense of $6.2 million for the first quarter of 2026, resulting in an effective tax rate of 19.1%, which is consistent with the Company's estimated annual effective tax rate.

Balance Sheet Highlights

Total assets increased by $127.6 million, or 2.0%, to $6.6 billion as of March 31, 2026, compared to $6.4 billion as of December 31, 2025. Asset growth during the period was primarily driven by an increase in interest earning deposits of $118.1 million, reflecting strong liquidity positioning, and a $6.9 million increase in investment securities. Total loans were $4.9 billion at March 31, 2026, an increase of $2.0 million from December 31, 2025. Net loan growth in the quarter was modest, but expressed solid origination volumes and disciplined pricing in commercial loans that was largely offset by runoff within the consumer and residential loan portfolios.

Total deposits increased by $146.9 million, or 2.8%, to $5.4 billion as of March 31, 2026 compared to December 31, 2025. Deposit growth was driven by a $61.3 million increase in time deposits, a $60.8 million increase in non-interest-bearing demand deposits, and a $52.9 million increase in savings and money market balances, reflecting continued success in core deposit gathering efforts. These increases were partially offset by a $28.1 million decrease in interest-bearing deposits, consistent with management's previously communicated strategy to de-emphasize higher-cost, transactional deposit relationships.

Overall, balance sheet growth during the quarter reflected a combination of steady asset growth, proactive liquidity management, and ongoing efforts to grow and optimize the deposit base. Management continues to focus on maintaining a strong funding position while supporting measured, relationship-driven loan growth aligned with long-term strategic objectives.

Capital

The following table presents the Consolidated Regulatory Capital Ratios of the Company for the previous three quarters, and the Company’s preliminary estimate of its consolidated regulatory capital ratios for the quarter ended March 31, 2026:

For the Quarter Ended

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

 

2026*

 

2025

 

2025

 

2025

Consolidated Capital Ratios

 

 

 

 

 

 

 

 

Total capital (to risk-weighted assets)

 

14.77

%

 

14.36

%

 

15.00

%

 

14.44

%

Tier 1 capital (to risk-weighted assets)

 

11.91

 

 

11.51

 

 

11.27

 

 

12.48

 

Common equity tier 1 capital (to risk-weighted assets)

 

10.82

 

 

10.42

 

 

10.17

 

 

11.48

 

Tier 1 capital (to average assets)

 

9.84

 

 

9.55

 

 

8.22

 

 

9.59

 

*Preliminary estimate - may be subject to change

 

 

 

 

 

As of March 31, 2026, the ratio of total stockholders’ equity to total assets is 10.65%. Book value per common share was $13.69, increasing $0.19 during the first quarter of 2026, as growth in retained earnings was partially offset by modestly higher levels of other comprehensive losses.

Tangible common equity1 totaled $537.3 million at March 31, 2026, and the ratio of tangible common equity to tangible assets1 was 8.39% at March 31, 2026, up from 8.38% at December 31, 2025. Tangible book value, which excludes intangible assets from total equity, per common share1 was $10.52, increasing $0.20 during the first quarter of 2026.

Credit Quality

As of March 31, 2026, total non-accrual loans increased by $2.3 million from December 31, 2025, and represent 0.71% of total loans held for investment. Total non-performing assets increased $3.4 million, to $44.0 million, compared with $40.6 million at December 31, 2025. Non-performing assets are 0.67% of total assets at quarter end, up slightly from 0.63% at December 31, 2025.

For the quarter ended March 31, 2026, net charge-offs were $0.6 million, or 0.05% annualized of average loans, compared to $1.0 million as of December 31, 2025. Charge‑off levels during the quarter remained low and consistent with management’s expectations, reflecting a continued focus on discipline underwriting and proactive portfolio monitoring. Overall, credit metrics remain stable, and management continues to closely monitor portfolio performance in the current economic environment.

_________________________
1 Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

Earnings Conference Call

As previously announced, Horizon will host a conference call to review its first quarter financial results and operating performance.

Participants may access the live conference call on April 23, 2026 at 7:30 a.m. CT (8:30 a.m. ET) by dialing 1-833-974-2379 from the United States and Canada or 1-412-317-5772 from international locations and requesting the “Horizon Bancorp, Inc. Call.” Participants are asked to dial in approximately 10 minutes prior to the call.

A telephone replay of the call will be available approximately one hour after the end of the conference through May 23, 2026. The replay may be accessed by dialing 1-855-669-9658 from the United States and Canada, or 1–412–317-0088 from other international locations, and entering the access code 2139263.

About Horizon Bancorp, Inc.

Horizon Bancorp, Inc. (NASDAQ GS: HBNC) is the $6.6 billion-asset commercial bank holding company for Horizon Bank, which serves customers across diverse and economically attractive Midwestern markets through convenient digital and virtual tools, as well as its Indiana and Michigan branches. Horizon's retail offerings include prime residential and other secured consumer lending to in-market customers, as well as a range of personal banking and wealth management solutions. Horizon also provides a comprehensive array of in-market business banking and treasury management services, as well as equipment financing solutions for customers regionally and nationally, with commercial lending representing over half of total loans. More information on Horizon, headquartered in Northwest Indiana's Michigan City, is available at horizonbank.com and investor.horizonbank.com.

Use of Non-GAAP Financial Measures

Certain information set forth in this press release refers to financial measures determined by methods other than in accordance with GAAP. Specifically, we have included non-GAAP financial measures relating to net income, diluted earnings per share, pre-tax, pre-provision net income, net interest margin, tangible stockholders’ equity and tangible book value per share, efficiency ratio, the return on average assets, the return on average common equity, and return on average tangible equity. In each case, we have identified special circumstances that we consider to be non-recurring and have excluded them. Horizon believes these non-GAAP financial measures are helpful to investors and provide a greater understanding of our business and financial results without giving effect to one-time costs and non–recurring items. These measures are not necessarily comparable to similar measures that may be presented by other companies and should not be considered in isolation or as a substitute for the related GAAP measure. See the tables and other information below and contained elsewhere in this press release for reconciliations of the non-GAAP information identified herein and its most comparable GAAP measures.

Forward Looking Statements

This press release may contain forward–looking statements regarding the financial performance, business prospects, growth and operating strategies of Horizon Bancorp, Inc. and its affiliates (collectively, “Horizon”). For these statements, Horizon claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this press release should be considered in conjunction with the other information available about Horizon, including the information in the filings we make with the Securities and Exchange Commission (the “SEC”). Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance.

Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include: changes in U.S. trade policies, including the imposition of tariffs and retaliatory tariffs, changes within the domestic and international macroeconomic environment, including trade policy, monetary and fiscal policy, inflation levels, and conditions in the investment, credit, interest rate, and derivatives markets, and their impact on Horizon and its customers; current financial conditions within the banking industry; changes in the level and volatility of interest rates, changes in spreads on earning assets and changes in interest bearing liabilities; increased interest rate sensitivity; loss of key Horizon personnel; increases in disintermediation; potential loss of fee income, including interchange fees, as new and emerging alternative payment platforms take a greater market share of the payment systems; estimates of fair value of certain of Horizon’s assets and liabilities; changes in prepayment speeds, loan originations, credit losses, market values, collateral securing loans and other assets; changes in sources of liquidity; legislative and regulatory actions and reforms; changes in accounting policies or procedures as may be adopted and required by regulatory agencies; litigation, regulatory enforcement, and legal compliance risk and costs; rapid technological developments and changes; cyber terrorism and data security breaches; the rising costs of cybersecurity; the ability of the U.S. federal government to manage federal debt limits; climate change and social justice initiatives; the inability to realize cost savings or revenues or to effectively implement integration plans and other consequences associated with mergers, acquisitions, and divestitures; acts of terrorism, war and global conflicts, and the effects of foreign and military policies of the U.S. government; and supply chain disruptions and delays. These and additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in Horizon’s reports (such as the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K) filed with the SEC and available at the SEC’s website (www.sec.gov). Undue reliance should not be placed on the forward–looking statements, which speak only as of the date hereof. Horizon does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward–looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.

 

 

 

Condensed Consolidated Statements of Income

 

(Dollars in Thousands Except Per Share Data, Unaudited)

 

Three Months Ended

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

2026

 

2025

 

2025

 

2025

 

2025

Interest Income

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable

$

75,104

 

 

$

77,238

 

 

$

79,561

 

 

$

78,618

 

 

$

74,457

 

Investment securities - taxable

 

7,494

 

 

 

7,688

 

 

 

6,631

 

 

 

5,941

 

 

 

6,039

 

Investment securities - tax-exempt

 

2,544

 

 

 

2,498

 

 

 

4,581

 

 

 

6,088

 

 

 

6,192

 

Other

 

1,509

 

 

 

1,864

 

 

 

2,063

 

 

 

830

 

 

 

2,487

 

Total interest income

 

86,651

 

 

 

89,288

 

 

 

92,836

 

 

 

91,477

 

 

 

89,175

 

Interest Expense

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

19,944

 

 

 

21,228

 

 

 

25,726

 

 

 

26,052

 

 

 

25,601

 

Borrowed funds

 

1,654

 

 

 

1,749

 

 

 

5,924

 

 

 

8,171

 

 

 

9,188

 

Subordinated notes

 

1,830

 

 

 

1,811

 

 

 

1,731

 

 

 

829

 

 

 

829

 

Junior subordinated debentures issued to capital trusts

 

983

 

 

 

1,024

 

 

 

1,069

 

 

 

1,070

 

 

 

1,290

 

Total interest expense

 

24,411

 

 

 

25,812

 

 

 

34,450

 

 

 

36,122

 

 

 

36,908

 

Net Interest Income

 

62,240

 

 

 

63,476

 

 

 

58,386

 

 

 

55,355

 

 

 

52,267

 

Provision for credit losses

 

391

 

 

 

1,630

 

 

 

(3,572

)

 

 

2,462

 

 

 

1,376

 

Net Interest Income after Provision for Credit Losses

 

61,849

 

 

 

61,846

 

 

 

61,958

 

 

 

52,893

 

 

 

50,891

 

Non-interest Income

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

3,524

 

 

 

3,341

 

 

 

3,474

 

 

 

3,208

 

 

 

3,208

 

Wire transfer fees

 

63

 

 

 

66

 

 

 

71

 

 

 

69

 

 

 

71

 

Interchange fees

 

3,373

 

 

 

3,445

 

 

 

3,510

 

 

 

3,403

 

 

 

3,241

 

Fiduciary activities

 

1,556

 

 

 

1,560

 

 

 

1,363

 

 

 

1,251

 

 

 

1,326

 

Gain (loss) on sale of investment securities

 

 

 

 

1

 

 

 

(299,132

)

 

 

 

 

 

(407

)

Gain on sale of mortgage loans

 

1,090

 

 

 

1,296

 

 

 

1,208

 

 

 

1,219

 

 

 

1,076

 

Mortgage servicing income net of impairment

 

337

 

 

 

352

 

 

 

351

 

 

 

375

 

 

 

385

 

Increase in cash value of bank owned life insurance

 

333

 

 

 

360

 

 

 

379

 

 

 

346

 

 

 

335

 

Other income (loss)

 

967

 

 

 

1,042

 

 

 

(6,558

)

 

 

1,049

 

 

 

7,264

 

Total non-interest income (loss)

 

11,243

 

 

 

11,463

 

 

 

(295,334

)

 

 

10,920

 

 

 

16,499

 

Non-interest Expense

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

23,187

 

 

 

21,895

 

 

 

22,698

 

 

 

22,731

 

 

 

22,414

 

Net occupancy expenses

 

4,197

 

 

 

3,718

 

 

 

3,321

 

 

 

3,127

 

 

 

3,702

 

Data processing

 

3,353

 

 

 

3,128

 

 

 

2,933

 

 

 

2,951

 

 

 

2,872

 

Professional fees

 

929

 

 

 

1,083

 

 

 

808

 

 

 

735

 

 

 

826

 

Outside services and consultants

 

2,764

 

 

 

3,035

 

 

 

3,844

 

 

 

3,278

 

 

 

3,265

 

Loan expense

 

1,219

 

 

 

1,183

 

 

 

1,237

 

 

 

1,231

 

 

 

689

 

FDIC insurance expense

 

1,023

 

 

 

1,251

 

 

 

1,345

 

 

 

1,216

 

 

 

1,288

 

Core deposit intangible amortization

 

675

 

 

 

706

 

 

 

706

 

 

 

816

 

 

 

816

 

Merger related expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

305

 

Prepayment penalties

 

 

 

 

 

 

 

12,680

 

 

 

 

 

 

 

Other losses

 

192

 

 

 

732

 

 

 

131

 

 

 

245

 

 

 

228

 

Other expense

 

3,208

 

 

 

3,884

 

 

 

3,249

 

 

 

3,087

 

 

 

2,901

 

Total non-interest expense

 

40,747

 

 

 

40,615

 

 

 

52,952

 

 

 

39,417

 

 

 

39,306

 

Income (Loss) Before Income Taxes

 

32,345

 

 

 

32,694

 

 

 

(286,328

)

 

 

24,396

 

 

 

28,084

 

Income tax expense (benefit)

 

6,177

 

 

 

5,773

 

 

 

(64,338

)

 

 

3,752

 

 

 

4,141

 

Net Income (Loss)

$

26,168

 

 

$

26,921

 

 

$

(221,990

)

 

$

20,644

 

 

$

23,943

 

Basic Earnings (Loss) Per Share

$

0.51

 

 

$

0.53

 

 

$

(4.69

)

 

$

0.47

 

 

$

0.55

 

Diluted Earnings (Loss) Per Share

 

0.51

 

 

 

0.53

 

 

 

(4.69

)

 

 

0.47

 

 

 

0.54

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

Condensed Consolidated Balance Sheet

 

(Dollars in Thousands, Unaudited)

 

Three Months Ended for the Period

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

2026

 

2025

 

2025

 

2025

 

2025

Assets

 

 

 

 

 

 

 

 

 

Interest earning assets

 

 

 

 

 

 

 

 

 

Federal funds sold

$

 

 

$

 

 

$

 

 

$

2,024

 

 

$

 

Interest earning deposits

 

190,717

 

 

 

72,646

 

 

 

381,860

 

 

 

34,174

 

 

 

80,023

 

Federal Home Loan Bank stock

 

45,713

 

 

 

45,713

 

 

 

45,713

 

 

 

45,412

 

 

 

45,412

 

Investment securities, held for trading

 

3,983

 

 

 

3,883

 

 

 

598

 

 

 

 

 

 

 

Investment securities, available for sale

 

882,168

 

 

 

875,414

 

 

 

883,242

 

 

 

231,999

 

 

 

231,431

 

Investment securities, held to maturity

 

 

 

 

 

 

 

 

 

 

1,819,087

 

 

 

1,843,851

 

Loans held for sale

 

9,821

 

 

 

9,778

 

 

 

1,921

 

 

 

2,994

 

 

 

3,253

 

Gross loans held for investment (HFI)

 

4,878,549

 

 

 

4,876,542

 

 

 

4,823,669

 

 

 

4,985,582

 

 

 

4,909,815

 

Total Interest earning assets

 

6,010,951

 

 

 

5,883,976

 

 

 

6,137,003

 

 

 

7,121,272

 

 

 

7,113,785

 

Non-interest earning assets

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

(51,297

)

 

 

(51,299

)

 

 

(50,178

)

 

 

(54,399

)

 

 

(52,654

)

Cash

 

68,354

 

 

 

66,813

 

 

 

76,395

 

 

 

101,719

 

 

 

89,643

 

Cash value of life insurance

 

37,065

 

 

 

36,732

 

 

 

37,762

 

 

 

37,755

 

 

 

37,409

 

Other assets

 

217,649

 

 

 

215,460

 

 

 

226,247

 

 

 

148,773

 

 

 

143,675

 

Goodwill

 

155,211

 

 

 

155,211

 

 

 

155,211

 

 

 

155,211

 

 

 

155,211

 

Other intangible assets

 

6,505

 

 

 

7,180

 

 

 

7,886

 

 

 

8,592

 

 

 

9,407

 

Premises and equipment, net

 

90,763

 

 

 

92,805

 

 

 

93,413

 

 

 

93,398

 

 

 

93,499

 

Interest receivable

 

29,015

 

 

 

29,733

 

 

 

28,758

 

 

 

39,730

 

 

 

38,663

 

Total non-interest earning assets

 

553,265

 

 

 

552,635

 

 

 

575,494

 

 

 

530,779

 

 

 

514,853

 

Total assets

$

6,564,216

 

 

$

6,436,611

 

 

$

6,712,497

 

 

$

7,652,051

 

 

$

7,628,638

 

Liabilities

 

 

 

 

 

 

 

 

 

Savings and money market deposits

$

3,119,034

 

 

$

3,094,231

 

 

$

3,198,332

 

 

$

3,385,413

 

 

$

3,393,371

 

Time deposits

 

1,163,807

 

 

 

1,102,478

 

 

 

1,199,681

 

 

 

1,193,180

 

 

 

1,245,088

 

Borrowings

 

159,825

 

 

 

160,118

 

 

 

160,206

 

 

 

880,336

 

 

 

812,218

 

Repurchase agreements

 

66,004

 

 

 

88,468

 

 

 

86,966

 

 

 

95,089

 

 

 

87,851

 

Subordinated notes

 

98,262

 

 

 

98,215

 

 

 

154,011

 

 

 

55,807

 

 

 

55,772

 

Junior subordinated debentures issued to capital trusts

 

57,740

 

 

 

57,688

 

 

 

57,636

 

 

 

57,583

 

 

 

57,531

 

Total interest earning liabilities

 

4,664,672

 

 

 

4,601,198

 

 

 

4,856,832

 

 

 

5,667,408

 

 

 

5,651,831

 

Non-interest bearing deposits

 

1,139,466

 

 

 

1,078,708

 

 

 

1,122,888

 

 

 

1,121,163

 

 

 

1,127,324

 

Interest payable

 

8,537

 

 

 

12,892

 

 

 

12,395

 

 

 

14,007

 

 

 

11,441

 

Other liabilities

 

52,514

 

 

 

55,562

 

 

 

59,611

 

 

 

58,621

 

 

 

61,981

 

Total liabilities

 

5,865,189

 

 

 

5,748,360

 

 

 

6,051,726

 

 

 

6,861,199

 

 

 

6,852,577

 

Stockholders’ Equity

 

 

 

 

 

 

 

 

 

Preferred stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional paid-in capital

 

459,799

 

 

 

459,243

 

 

 

458,734

 

 

 

360,758

 

 

 

360,522

 

Retained earnings

 

272,941

 

 

 

255,004

 

 

 

236,312

 

 

 

466,497

 

 

 

452,945

 

Accumulated other comprehensive (loss)

 

(33,713

)

 

 

(25,996

)

 

 

(34,275

)

 

 

(36,403

)

 

 

(37,406

)

Total stockholders’ equity

 

699,027

 

 

 

688,251

 

 

 

660,771

 

 

 

790,852

 

 

 

776,061

 

Total liabilities and stockholders’ equity

$

6,564,216

 

 

$

6,436,611

 

 

$

6,712,497

 

 

$

7,652,051

 

 

$

7,628,638

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

Loans and Deposits

 

 

 

 

 

(Dollars in Thousands, Unaudited)

 

 

 

 

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

% Change

 

2026

 

2025

 

2025

 

2025

 

2025

 

Q1'26 vs Q4'25

 

Q1'26 vs Q1'25

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

$

2,443,582

 

$

2,421,863

 

$

2,366,956

 

$

2,321,951

 

$

2,262,910

 

1

%

 

8

%

Commercial & Industrial

 

1,023,068

 

 

1,010,545

 

 

989,609

 

 

976,740

 

 

918,541

 

1

%

 

11

%

Total commercial

 

3,466,650

 

 

3,432,408

 

 

3,356,565

 

 

3,298,691

 

 

3,181,451

 

1

%

 

9

%

Residential Real estate

 

750,108

 

 

772,427

 

 

783,850

 

 

786,026

 

 

801,726

 

(3

)%

 

(6

)%

Consumer

 

661,791

 

 

671,707

 

 

683,254

 

 

900,865

 

 

926,638

 

(1

)%

 

(29

)%

Total loans held for investment

 

4,878,549

 

 

4,876,542

 

 

4,823,669

 

 

4,985,582

 

 

4,909,815

 

%

 

(1

)%

Loans held for sale

 

9,821

 

 

9,778

 

 

1,921

 

 

2,994

 

 

3,253

 

%

 

202

%

Total loans

$

4,888,370

 

$

4,886,320

 

$

4,825,590

 

$

4,988,576

 

$

4,913,068

 

%

 

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing deposits

$

1,611,795

 

$

1,639,857

 

$

1,715,471

 

$

1,713,058

 

$

1,713,991

 

(2

)%

 

(6

)%

Savings and money market deposits

 

1,507,239

 

 

1,454,374

 

 

1,482,861

 

 

1,672,355

 

 

1,679,380

 

4

%

 

(10

)%

Time deposits

 

1,163,807

 

 

1,102,478

 

 

1,199,681

 

 

1,193,180

 

 

1,245,088

 

6

%

 

(7

)%

Total Interest bearing deposits

 

4,282,841

 

 

4,196,709

 

 

4,398,013

 

 

4,578,593

 

 

4,638,459

 

2

%

 

(8

)%

Non-interest bearing deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing deposits

 

1,139,466

 

 

1,078,708

 

 

1,122,888

 

 

1,121,164

 

 

1,127,324

 

6

%

 

1

%

Total deposits

$

5,422,307

 

$

5,275,417

 

$

5,520,901

 

$

5,699,757

 

$

5,765,784

 

3

%

 

(6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

Average Balance Sheet

 

(Dollars in Thousands, Unaudited)

 

Three Months Ended

 

March 31, 2026

 

December 31, 2025

 

March 31, 2025

 

Average
Balance

 

Interest(4)(6)

 

Average
Rate(4)

 

Average
Balance

 

Interest(4)(6)

 

Average
Rate(4)

 

Average
Balance

 

Interest(4)(6)

 

Average
Rate(4)

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest earning assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest earning deposits (incl. Fed Funds Sold)

$

165,084

 

 

$

1,509

 

3.71

%

 

$

182,017

 

 

$

1,866

 

4.07

%

 

$

223,148

 

 

$

2,487

 

4.52

%

Federal Home Loan Bank stock

 

45,713

 

 

 

551

 

4.89

%

 

 

45,713

 

 

 

616

 

5.35

%

 

 

51,769

 

 

 

1,012

 

7.93

%

Investment securities - taxable (1)

 

581,146

 

 

 

6,944

 

4.85

%

 

 

570,786

 

 

 

7,071

 

4.91

%

 

 

974,109

 

 

 

5,027

 

2.09

%

Investment securities - non-taxable (1)

 

319,276

 

 

 

3,220

 

4.09

%

 

 

312,988

 

 

 

3,162

 

4.01

%

 

 

1,120,249

 

 

 

7,838

 

2.84

%

Total investment securities

 

900,422

 

 

 

10,164

 

4.58

%

 

 

883,774

 

 

 

10,233

 

4.59

%

 

 

2,094,358

 

 

 

12,865

 

2.49

%

Loans receivable (2) (3)

 

4,873,753

 

 

 

75,485

 

6.28

%

 

 

4,855,824

 

 

 

77,628

 

6.34

%

 

 

4,865,449

 

 

 

74,840

 

6.24

%

Total interest earning assets

 

5,984,972

 

 

 

87,709

 

5.94

%

 

 

5,967,328

 

 

 

90,343

 

6.01

%

 

 

7,234,724

 

 

 

91,204

 

5.11

%

Non-interest earning assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

68,007

 

 

 

 

 

 

 

74,102

 

 

 

 

 

 

 

88,624

 

 

 

 

 

Allowance for credit losses

 

(51,217

)

 

 

 

 

 

 

(49,815

)

 

 

 

 

 

 

(51,863

)

 

 

 

 

Other assets

 

533,989

 

 

 

 

 

 

 

545,520

 

 

 

 

 

 

 

483,765

 

 

 

 

 

Total average assets

$

6,535,751

 

 

 

 

 

 

$

6,537,135

 

 

 

 

 

 

$

7,755,250

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing demand deposits

$

1,638,208

 

 

$

4,587

 

1.14

%

 

$

1,686,435

 

 

$

5,572

 

1.31

%

 

$

1,750,446

 

 

$

6,491

 

1.50

%

Saving and money market deposits

 

1,475,444

 

 

 

5,619

 

1.54

%

 

 

1,445,144

 

 

 

5,587

 

1.53

%

 

 

1,674,590

 

 

 

8,263

 

2.00

%

Time deposits

 

1,153,484

 

 

 

9,739

 

3.42

%

 

 

1,134,417

 

 

 

10,071

 

3.52

%

 

 

1,212,386

 

 

 

10,847

 

3.63

%

Total Deposits

 

4,267,136

 

 

 

19,945

 

1.90

%

 

 

4,265,996

 

 

 

21,230

 

1.97

%

 

 

4,637,422

 

 

 

25,601

 

2.24

%

Borrowings

 

150,229

 

 

 

1,421

 

3.84

%

 

 

150,304

 

 

 

1,452

 

3.83

%

 

 

971,496

 

 

 

8,772

 

3.66

%

Repurchase agreements

 

77,376

 

 

 

233

 

1.22

%

 

 

87,160

 

 

 

295

 

1.34

%

 

 

88,469

 

 

 

416

 

1.91

%

Subordinated notes

 

98,231

 

 

 

1,830

 

7.56

%

 

 

98,185

 

 

 

1,812

 

7.32

%

 

 

55,750

 

 

 

829

 

6.03

%

Junior subordinated debentures issued to capital trusts

 

57,706

 

 

 

983

 

6.91

%

 

 

57,655

 

 

 

1,023

 

7.04

%

 

 

57,497

 

 

 

1,290

 

9.10

%

Total interest bearing liabilities

 

4,650,678

 

 

 

24,412

 

2.13

%

 

 

4,659,300

 

 

 

25,812

 

2.20

%

 

 

5,810,634

 

 

 

36,908

 

2.58

%

Non-interest bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

1,117,930

 

 

 

 

 

 

 

1,137,639

 

 

 

 

 

 

 

1,085,826

 

 

 

 

 

Accrued interest payable and other liabilities

 

59,227

 

 

 

 

 

 

 

60,375

 

 

 

 

 

 

 

78,521

 

 

 

 

 

Stockholders' equity

 

707,916

 

 

 

 

 

 

 

679,821

 

 

 

 

 

 

 

780,269

 

 

 

 

 

Total average liabilities and stockholders' equity

$

6,535,751

 

 

 

 

 

 

$

6,537,135

 

 

 

 

 

 

$

7,755,250

 

 

 

 

 

Net FTE interest income (non-GAAP) (5)

 

 

$

63,297

 

 

 

 

 

$

64,531

 

 

 

 

 

$

54,296

 

 

Less FTE adjustments (4)

 

 

 

1,057

 

 

 

 

 

 

1,055

 

 

 

 

 

 

2,029

 

 

Net Interest Income

 

 

$

62,240

 

 

 

 

 

$

63,476

 

 

 

 

 

$

52,267

 

 

Net FTE interest margin (Non-GAAP) (4)(5)

 

 

 

 

4.29

%

 

 

 

 

 

4.29

%

 

 

 

 

 

3.04

%

(1)Securities balances represent daily average balances for the fair value of securities. The average rate is calculated based on the daily average balance for the amortized cost of securities.

(2)Includes fees on loans held for sale and held for investment. The inclusion of loan fees does not have a material effect on the average interest rate.

(3)Non-accruing loans for the purpose of the computation above are included in the daily average loan amounts outstanding. Loan totals are shown net of unearned income and deferred loan fees.

(4)Management believes fully taxable equivalent, or FTE, interest income is useful to investors in evaluating the Company's performance as a comparison of the returns between a tax-free investment and a taxable alternative. The Company adjusts interest income and average rates for tax-exempt loans and securities to an FTE basis utilizing a 21% tax rate.

(5)Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

(6)Includes dividend income on Federal Home Loan Bank stock

 


 

 

 

 

 

 

 

Credit Quality

 

 

 

 

 

(Dollars in Thousands Except Ratios, Unaudited)

 

 

 

 

 

Quarter Ended

 

 

 

 

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

% Change

 

2026

 

2025

 

2025

 

2025

 

2025

 

Q1'26 vs Q4'25

 

Q1'26 vs Q1'25

Non-accrual loans

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

$

15,761

 

 

$

14,549

 

 

$

12,303

 

 

$

7,547

 

 

$

8,172

 

 

8

%

 

93

%

Residential Real estate

 

10,607

 

 

 

10,087

 

 

 

9,256

 

 

 

9,525

 

 

 

12,763

 

 

5

%

 

(17

)%

Consumer

 

8,416

 

 

 

7,821

 

 

 

7,799

 

 

 

7,222

 

 

 

7,875

 

 

8

%

 

7

%

Total non-accrual loans

 

34,784

 

 

 

32,457

 

 

 

29,358

 

 

 

24,294

 

 

 

28,810

 

 

7

%

 

21

%

90 days and greater delinquent - accruing interest

 

2,211

 

 

 

2,489

 

 

 

1,608

 

 

 

2,113

 

 

 

1,582

 

 

(11

)%

 

40

%

Total non-performing loans

$

36,995

 

 

$

34,946

 

 

$

30,966

 

 

$

26,407

 

 

$

30,392

 

 

6

%

 

22

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other real estate owned

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

$

594

 

 

$

539

 

 

$

272

 

 

$

176

 

 

$

360

 

 

10

%

 

65

%

Residential Real estate

 

631

 

 

 

672

 

 

 

769

 

 

 

463

 

 

 

641

 

 

(6

)%

 

(1

)%

Consumer

 

1,875

 

 

 

480

 

 

 

480

 

 

 

480

 

 

 

34

 

 

291

%

 

5415

%

Total other real estate owned

 

3,100

 

 

 

1,691

 

 

 

1,521

 

 

 

1,119

 

 

 

1,035

 

 

83

%

 

200

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other non-performing assets(1)

$

3,935

 

 

$

3,991

 

 

$

3,228

 

 

$

2,937

 

 

$

 

 

(1

)%

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-performing assets

$

44,030

 

 

$

40,628

 

 

$

35,715

 

 

$

30,463

 

 

$

31,427

 

 

8

%

 

40

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan data:

 

 

 

 

 

 

 

 

 

 

 

 

 

Accruing 30 to 89 days past due loans

$

19,379

 

 

$

24,580

 

 

$

24,784

 

 

$

31,401

 

 

$

19,034

 

 

(21

)%

 

2

%

Substandard loans

 

63,419

 

 

 

59,365

 

 

 

63,236

 

 

 

64,100

 

 

 

66,714

 

 

7

%

 

(5

)%

Net charge-offs (recoveries)

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

$

339

 

 

$

436

 

 

$

294

 

 

$

84

 

 

$

(47

)

 

(22

)%

 

(821

)%

Residential Real estate

 

1

 

 

 

(25

)

 

 

19

 

 

 

52

 

 

 

(47

)

 

(104

)%

 

(102

)%

Consumer

 

285

 

 

 

559

 

 

 

518

 

 

 

118

 

 

 

963

 

 

(49

)%

 

(70

)%

Total net charge-offs

$

625

 

 

$

970

 

 

$

831

 

 

$

254

 

 

$

869

 

 

(36

)%

 

(28

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

$

34,997

 

 

$

35,473

 

 

$

34,390

 

 

$

34,413

 

 

$

32,640

 

 

(1

)%

 

7

%

Residential Real estate

 

3,183

 

 

 

3,183

 

 

 

3,082

 

 

 

3,229

 

 

 

3,167

 

 

%

 

%

Consumer

 

13,117

 

 

 

12,643

 

 

 

12,706

 

 

 

16,757

 

 

 

16,847

 

 

4

%

 

(22

)%

Total allowance for credit losses

$

51,297

 

 

$

51,299

 

 

$

50,178

 

 

$

54,399

 

 

$

52,654

 

 

%

 

(3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit quality ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans to HFI loans

 

0.71

%

 

 

0.67

%

 

 

0.61

%

 

 

0.49

%

 

 

0.59

%

 

 

 

 

Non-performing assets to total assets

 

0.67

%

 

 

0.63

%

 

 

0.53

%

 

 

0.40

%

 

 

0.41

%

 

 

 

 

Annualized net charge-offs of average total loans

 

0.05

%

 

 

0.08

%

 

 

0.07

%

 

 

0.02

%

 

 

0.07

%

 

 

 

 

Allowance for credit losses to HFI loans

 

1.05

%

 

 

1.05

%

 

 

1.04

%

 

 

1.09

%

 

 

1.07

%

 

 

 

 

(1)Other non-performing assets consist of a single available for sale debt security placed on non-accrual status.

 


 

 

 

 

 

Non–GAAP Reconciliation of Net Fully-Taxable Equivalent ("FTE") Interest Margin

 

 

(Dollars in Thousands, Unaudited)

 

 

Three Months Ended

 

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

 

2026

 

2025

 

2025

 

2025

 

2025

Interest income (GAAP)

(A)

$

86,651

 

 

$

89,288

 

 

$

92,836

 

 

$

91,477

 

 

$

89,175

 

Taxable-equivalent adjustment:

 

 

 

 

 

 

 

 

 

 

Investment securities - tax exempt (1)

 

 

676

 

 

 

665

 

 

 

1,218

 

 

 

1,619

 

 

 

1,646

 

Loan receivable (2)

 

 

381

 

 

 

390

 

 

 

379

 

 

 

382

 

 

 

383

 

Interest income (non-GAAP)

(B)

 

87,708

 

 

 

90,343

 

 

 

94,433

 

 

 

93,478

 

 

 

91,204

 

Interest expense (GAAP)

(C)

 

24,411

 

 

 

25,812

 

 

 

34,450

 

 

 

36,122

 

 

 

36,908

 

Net interest income (GAAP)

(D) =(A) - (C)

$

62,240

 

 

$

63,476

 

 

$

58,386

 

 

$

55,355

 

 

$

52,267

 

Net FTE interest income (non-GAAP)

(E) = (B) - (C)

$

63,297

 

 

$

64,531

 

 

$

59,983

 

 

$

57,356

 

 

$

54,296

 

Average interest earning assets

(F)

 

5,984,972

 

 

 

5,967,328

 

 

 

6,766,742

 

 

 

7,125,467

 

 

 

7,234,724

 

Net FTE interest margin (non-GAAP)

(G) = (E*) / (F)

 

4.29

%

 

 

4.29

%

 

 

3.52

%

 

 

3.23

%

 

 

3.04

%

 

 

 

 

 

 

 

 

 

 

 

(1)The following represents municipal securities interest income for investment securities classified as available-for-sale and held-to-maturity

(2)The following represents municipal loan interest income for loan receivables classified as held for sale and held for investment

*Annualized

 


 

 

 

 

 

Non–GAAP Reconciliation of Return on Average Tangible Common Equity

 

 

(Dollars in Thousands, Unaudited)

 

 

Three Months Ended

 

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

 

2026

 

2025

 

2025

 

2025

 

2025

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) (GAAP)

(A)

$

26,168

 

 

$

26,921

 

 

$

(221,990

)

 

$

20,644

 

 

$

23,943

 

 

 

 

 

 

 

 

 

 

 

 

Average stockholders' equity

(B)

$

707,916

 

 

$

679,821

 

 

$

731,657

 

 

$

789,535

 

 

$

780,269

 

Average intangible assets

(C)

 

162,148

 

 

 

162,838

 

 

 

163,552

 

 

 

164,320

 

 

 

165,138

 

Average tangible equity (Non-GAAP)

(D) = (B) - (C)

$

545,768

 

 

$

516,983

 

 

$

568,105

 

 

$

625,215

 

 

$

615,131

 

Return on average tangible common equity ("ROACE") (non-GAAP)

(E) = (A*) / (D)

 

19.02

%

 

 

20.66

%

 

(155.03

)%

 

 

13.24

%

 

 

15.79

%

*Annualized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

 

Non–GAAP Reconciliation of Tangible Common Equity to Tangible Assets

 

 

(Dollars in Thousands, Unaudited)

 

 

Three Months Ended

 

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

 

2026

 

2025

 

2025

 

2025

 

2025

Total stockholders' equity (GAAP)

(A)

$

699,027

 

 

$

688,251

 

 

$

660,771

 

 

$

790,852

 

 

$

776,061

 

Intangible assets (end of period)

(B)

 

161,716

 

 

 

162,391

 

 

 

163,097

 

 

 

163,803

 

 

 

164,618

 

Total tangible common equity (non-GAAP)

(C) = (A) - (B)

$

537,311

 

 

$

525,860

 

 

$

497,674

 

 

$

627,049

 

 

$

611,443

 

 

 

 

 

 

 

 

 

 

 

 

Total assets (GAAP)

(D)

$

6,564,216

 

 

$

6,436,612

 

 

$

6,712,497

 

 

$

7,652,051

 

 

$

7,628,636

 

Intangible assets (end of period)

(B)

 

161,716

 

 

 

162,391

 

 

 

163,097

 

 

 

163,803

 

 

 

164,618

 

Total tangible assets (non-GAAP)

(E) = (D) - (B)

$

6,402,500

 

 

$

6,274,221

 

 

$

6,549,400

 

 

$

7,488,248

 

 

$

7,464,018

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity to tangible assets (Non-GAAP)

(G) = (C) / (E)

 

8.39

%

 

 

8.38

%

 

 

7.60

%

 

 

8.37

%

 

 

8.19

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

 

Non–GAAP Reconciliation of Tangible Book Value Per Share

 

 

(Dollars in Thousands, Unaudited)

 

 

Three Months Ended

 

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

 

2026

 

2025

 

2025

 

2025

 

2025

Total stockholders' equity (GAAP)

(A)

$

699,027

 

 

$

688,251

 

 

$

660,771

 

 

$

790,852

 

 

$

776,061

 

Intangible assets (end of period)

(B)

 

161,716

 

 

 

162,391

 

 

 

163,097

 

 

 

163,803

 

 

 

164,618

 

Total tangible common equity (non-GAAP)

(C) = (A) - (B)

$

537,311

 

 

$

525,860

 

 

$

497,674

 

 

$

627,049

 

 

$

611,443

 

Common shares outstanding

(D)

 

51,056,888

 

 

 

50,978,030

 

 

 

50,970,530

 

 

 

43,801,507

 

 

 

43,785,932

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible book value per common share (non-GAAP)

(E) = (C) / (D)

$

10.52

 

 

$

10.32

 

 

$

9.76

 

 

$

14.32

 

 

$

13.96

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

Contact:

John R. Stewart, CFA

 

EVP, Chief Financial Officer

Phone:

(219) 814–5833

Fax:

(219) 874–9280