CORAL GABLES, Fla.--(BUSINESS WIRE)--Amerant Bancorp Inc. (NYSE: AMTB) (the “Company” or “Amerant”) today reported net income attributable to the Company of $25.7 million in the third quarter of 2026, or $0.65 earnings per diluted share, compared to net income of $21.0 million, or $0.53 earnings per diluted share, in the second quarter of 2026.
"Our third quarter results reflect meaningful progress in building a more profitable and resilient franchise," said Carlos Iafigliola, President and Chief Executive Officer. "Stronger net interest income and disciplined expense management drove improved profitability, net interest margin expansion, and higher net income. We also achieved solid loan growth, continued to reduce non-performing assets and classified loans, and achieved a noninterest bearing deposit mix that better reflects the underlying strength of our deposit base. With a stronger foundation now in place, our focus is increasingly shifting toward enhancing franchise value and delivering sustainable returns for our shareholders."
Below are the results for 3Q26 and their comparison to 2Q26:
- Total assets were $10.2 billion, down by $82.6 million, or 0.8%, compared to $10.3 billion.
- Total gross loans, which include all loans held for sale, were $7.1 billion, up by $207.8 million, or 3.0%, compared to $6.9 billion.
- Cash and cash equivalents and restricted cash were $361.5 million, up by $60.3 million, or 20.0%, compared to $301.1 million.
- Total investments were $2.2 billion, down by $382.8 million, or 14.7%, compared to $2.6 billion.
- Total deposits were $8.2 billion, down by $109.6 million, or 1.3%, compared to $8.4 billion.
- Core deposits were $6.3 billion, down by $125.8 million, or 2.0%, compared to $6.4 billion.
- Total advances from the Federal Home Loan Bank (“FHLB”) were $715.0 million, up by $12.4 million, or 1.8%, compared to $702.6 million.
- Net Interest Margin (“NIM”) was 3.77%, compared to 3.52%. The increase in NIM reflects $1.6 million in additional interest recorded during the quarter from repayments of loans previously in nonaccrual status.
- Average yield on loans was 6.35%, compared to 6.22%.
- Average cost of total deposits was 2.07%, compared to 2.21%.
- Loan to deposit ratio was 85.78%, compared to 82.17%.
-
Asset Quality and Allowance for Credit Losses (“ACL”):
- Total non-performing assets were $159.5 million, down by $27.1 million, or 14.5%, compared to $186.6 million. As of 3Q26, non-performing assets consist of $149.5 million in non-performing loans and $10.0 million in Other Real Estate Owned (“OREO”).
- The ACL was $94.8 million compared to $85.5 million.
- Classified loans were $213.0 million, down by $60.1 million, or 22.0%, compared to $273.1 million, while non-performing loans were $149.5 million, down $21.6 million, or 12.6%, compared to $171.1 million. The reduction in classified and non-performing loans was primarily attributable to payoffs during the quarter. Special mention loans were $120.7 million, up $10.9 million, or 10.0%, compared to $109.8 million. The increase was primarily driven by downgrades during the quarter.
- The Company has provided additional details regarding asset quality in the 3Q26 earnings presentation (https://investor.amerantbank.com).
- Assets Under Management and custody (“AUM”) totaled $3.45 billion, up by $77.9 million, or 2.3% from $3.37 billion.
- Pre-tax pre-provision net revenue (“PPNR”)(1) was $39.7 million, up by $7.8 million, or 24.6%, compared to PPNR of $31.9 million.
- Net Interest Income (“NII”) was $90.5 million, up by $7.9 million, or 9.6%, from $82.6 million.
- Provision for credit losses was $6.2 million, up by $1.5 million, or 30.5%, compared to $4.8 million.
- Noninterest income was $18.3 million, up by $0.2 million, or 1.0%, from $18.2 million.
- Noninterest expense was $69.1 million, up by $0.2 million, or 0.3%, from $68.9 million. Noninterest expense this quarter includes $1.3 million in OREO income, compared to $0.3 million in the previous quarter.
- The efficiency ratio was 63.51%, compared to 68.37%.
- Return on average assets (“ROA”) was 1.00%, compared to 0.84%.
- Return on average equity (“ROE”) was 11.29%, compared to 9.23%.
- The Company repurchased an aggregate of 70,592 shares of Class A common stock at a weighted average price of $28.47 per share, or 1.36x of Tangible Book Value ("TBV")(1) and 1.32x of book value per share. The aggregate purchase price for these transactions was approximately $2.0 million.
- On September 17, 2026, the Company completed a registered offering of $50.0 million aggregate principal amount of 7.00% Senior Notes due 2031. The unsecured, unsubordinated Notes bear interest at 7.00% per annum, payable semi-annually beginning March 17, 2027, rank pari passu with the Company's other unsecured and unsubordinated indebtedness, and rank senior to subordinated indebtedness.
- On October 21, 2026, the Company’s Board of Directors declared a cash dividend of $0.09 per share of common stock. The dividend is payable on November 27, 2026 to shareholders of record on November 13, 2026.
Additional details on the third quarter 2026 results can be found in the Exhibits and Glossary of Terms and Definitions to this earnings release, and the earnings presentation available under the Investor Relations section of the Company’s website at https://investor.amerantbank.com. See Glossary of Terms and Definitions for definitions of financial terms.
1 Non-GAAP measure, see “Non-GAAP Financial Measures” for more information and Exhibit 2 for a reconciliation to GAAP measures. |
Third Quarter 2026 Earnings Conference Call
The Company will hold an earnings conference call on Friday, October 23, 2026 at 9:00 a.m. (Eastern Time) to discuss its third quarter 2026 results. The conference call and presentation materials can be accessed via webcast by logging on from the Investor Relations section of the Company’s website at https://investor.amerantbank.com. The online replay will remain available for approximately one month following the call through the above link.
About Amerant Bancorp Inc. (NYSE: AMTB)
Amerant Bancorp Inc. is a bank holding company headquartered in Coral Gables, Florida since 1979. The Company operates through its main subsidiary, Amerant Bank, N.A. (the “Bank”), as well as its other subsidiary Amerant Investments, Inc. The Company provides individuals and businesses with deposit, credit and wealth management services. The Bank, which has operated for over 45 years, is headquartered in Florida and has a network of 23 banking centers – 21 in South Florida and 2 in Tampa, Florida. For more information, visit investor.amerantbank.com.
Cautionary Notice Regarding Forward-Looking Statements
This press release contains “forward-looking statements” including statements with respect to the Company’s objectives, expectations and intentions and other statements that are not historical facts. Examples of forward-looking statements include but are not limited to: our future operating or financial performance, including revenues, expenses, expense savings, income or loss and earnings or loss per share, and other financial items; statements regarding expectations, plans or objectives for future operations, products or services, and our expectations on loan recoveries, or reaching positive resolutions on problem loans, or significantly reducing special mention and/or non-performing loans. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as “may,” “will,” “anticipate,” “assume,” “should,” “indicate,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “plan,” “point to,” “project,” “could,” “intend,” “target,” “goals,” “outlook,” “modeled,” “dedicated,” “create,” and other similar words and expressions of the future.
Forward-looking statements, including those relating to our beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions, involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the Company’s actual results, performance, achievements, or financial condition to be materially different from future results, performance, achievements, or financial condition expressed or implied by such forward-looking statements. You should not rely on any forward-looking statements as predictions of future events. You should not expect us to update any forward-looking statements, except as required by law. All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, together with those risks and uncertainties described in “Risk factors” in our annual report on Form 10-K for the fiscal year ended December 31, 2025 filed on February 27, 2026 (the “2025 Form 10-K”), in our quarterly report on Form 10-Q for the quarter ended March 31, 2026, filed on May 1, 2026, and in our other filings with the U.S. Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website www.sec.gov.
Interim Financial Information
Unaudited financial information as of and for interim periods, including the three and nine month periods ended September 30, 2026 and 2025, and the three month periods ended June 30, 2026, March 31, 2026, and December 31, 2025, may not reflect our results of operations for our fiscal year ending, or financial condition, as of December 31, 2026, or any other period of time or date.
Non-GAAP Financial Measures
The Company supplements its financial results that are determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”) with non-GAAP financial measures, such as “pre-tax pre-provision net revenue (PPNR)”, "tangible common equity ratio", and “tangible stockholders’ equity (book value) per common share”. This supplemental information is not required by, or is not presented in accordance with GAAP. The Company refers to these financial measures and ratios as “non-GAAP financial measures”.
We use certain non-GAAP financial measures, including those mentioned above, both to explain our results to shareholders and the investment community and in the internal evaluation and management of our business. Management believes that these supplementary non-GAAP financial measures and the information they provide are useful to investors since these measures permit investors to view our performance using the same tools that our management uses to evaluate our past performance and prospects for future performance. While we believe that these non-GAAP financial measures are useful in evaluating our performance, this information should be considered as supplemental and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ from similar measures presented by other companies.
Exhibit 2 reconciles these non-GAAP financial measures to GAAP reported results.
Beginning in the first quarter of 2026, the Company reviewed and updated its use of non‑GAAP financial measures and now presents a limited set of metrics that management uses to evaluate performance and make operating decisions. As part of this update, the Company discontinued the presentation of “Core PPNR”, “core noninterest income”, “core noninterest expense”, “core net income”, “core earnings per share (basic and diluted)”, “core return on assets (Core ROA)”, “core return on equity (Core ROE)”, and “core efficiency ratio” as management determined these measures are no longer primary metrics used internally. This change does not reflect any change in the Company’s underlying business, operations, or GAAP financial results.
Exhibit 1- Selected Financial Information
The following table sets forth selected financial information derived from our interim unaudited and annual audited consolidated financial statements.
(in thousands) |
September 30,
|
June 30, 2026 |
March 31, 2026 |
December 31,
|
September 30,
|
|||||||||
Consolidated Balance Sheets |
(audited) |
|||||||||||||
Total assets |
$ |
10,211,645 |
$ |
10,294,247 |
$ |
9,903,514 |
$ |
9,777,018 |
$ |
10,410,199 |
||||
Total investments |
2,225,628 |
2,608,418 |
2,430,884 |
2,084,569 |
2,307,701 |
|||||||||
Total gross loans (1) |
7,073,445 |
6,865,627 |
6,753,781 |
6,697,235 |
6,941,792 |
|||||||||
Allowance for credit losses |
94,845 |
85,499 |
79,236 |
79,276 |
94,918 |
|||||||||
Total deposits |
8,245,672 |
8,355,308 |
7,939,101 |
7,786,934 |
8,300,969 |
|||||||||
Core deposits (1) |
6,318,465 |
6,444,271 |
5,891,689 |
5,790,895 |
6,203,038 |
|||||||||
Advances from the Federal Home Loan Bank |
715,000 |
702,608 |
732,263 |
711,984 |
831,699 |
|||||||||
Senior notes |
48,366 |
— |
— |
— |
— |
|||||||||
Subordinated notes |
29,922 |
29,880 |
29,837 |
29,795 |
29,752 |
|||||||||
Junior subordinated debentures |
64,178 |
64,178 |
64,178 |
64,178 |
64,178 |
|||||||||
Stockholders' equity |
840,817 |
914,369 |
913,918 |
938,802 |
944,940 |
|||||||||
Assets under management and custody (1) |
3,449,056 |
3,371,114 |
3,423,919 |
3,256,754 |
3,169,514 |
|||||||||
Three Months Ended |
|||||||||||||||||||
(in thousands, except percentages, share data and per share amounts) |
September 30,
|
June 30, 2026 |
March 31, 2026 |
December 31,
|
September 30,
|
||||||||||||||
Consolidated Results of Operations |
|||||||||||||||||||
Net interest income |
$ |
90,464 |
$ |
82,575 |
$ |
80,281 |
$ |
90,150 |
$ |
94,152 |
|||||||||
Provision for credit losses (2) |
6,200 |
4,750 |
7,800 |
3,490 |
14,600 |
||||||||||||||
Noninterest income |
18,339 |
18,162 |
17,381 |
22,019 |
17,291 |
||||||||||||||
Noninterest expense |
69,098 |
68,877 |
66,919 |
106,772 |
77,835 |
||||||||||||||
Net income attributable to Amerant Bancorp Inc. |
25,716 |
21,043 |
17,873 |
2,701 |
14,756 |
||||||||||||||
Pre-tax pre-provision net revenue (PPNR) (3) |
39,705 |
31,860 |
30,743 |
5,397 |
33,608 |
||||||||||||||
Effective income tax rate |
23.25 |
% |
22.38 |
% |
22.10 |
% |
(41.64 |
)% |
22.37 |
% |
|||||||||
Common Share Data |
|||||||||||||||||||
Stockholders' book value per common share |
$ |
21.49 |
$ |
23.33 |
$ |
22.96 |
$ |
23.13 |
$ |
22.90 |
|||||||||
Tangible stockholders' equity (book value) per common share (3)(4) |
$ |
20.94 |
$ |
22.78 |
$ |
22.38 |
$ |
22.56 |
$ |
22.32 |
|||||||||
Basic earnings per common share |
$ |
0.66 |
$ |
0.54 |
$ |
0.44 |
$ |
0.07 |
$ |
0.35 |
|||||||||
Diluted earnings per common share (4) |
$ |
0.65 |
$ |
0.53 |
$ |
0.44 |
$ |
0.07 |
$ |
0.35 |
|||||||||
Basic weighted average shares outstanding |
39,164,732 |
39,316,906 |
40,315,757 |
40,915,733 |
41,590,201 |
||||||||||||||
Diluted weighted average shares outstanding (4) |
39,444,784 |
39,509,583 |
40,510,993 |
41,102,760 |
41,774,101 |
||||||||||||||
Cash dividend declared per common share (5) |
$ |
0.09 |
$ |
0.09 |
$ |
0.09 |
$ |
0.09 |
$ |
0.09 |
|||||||||
Three Months Ended |
||||||||||||||
September 30,
|
June 30, 2026 |
March 31, 2026 |
December 31,
|
September 30,
|
||||||||||
Other Financial and Operating Data (6) |
||||||||||||||
Profitability Indicators (%) |
||||||||||||||
Net interest income / Average total interest earning assets (NIM) (1) |
3.77 |
% |
3.52 |
% |
3.55 |
% |
3.78 |
% |
3.92 |
% |
||||
Net income / Average total assets (ROA)(1) |
1.00 |
% |
0.84 |
% |
0.73 |
% |
0.10 |
% |
0.57 |
% |
||||
Net income / Average stockholders' equity (ROE) (1) |
11.29 |
% |
9.23 |
% |
7.63 |
% |
1.12 |
% |
6.21 |
% |
||||
Noninterest income / Total revenue (1) |
16.86 |
% |
18.03 |
% |
17.80 |
% |
19.63 |
% |
15.52 |
% |
||||
Capital Indicators (%) |
||||||||||||||
Total capital ratio (1) |
14.48 |
% |
14.34 |
% |
14.16 |
% |
14.10 |
% |
13.89 |
% |
||||
Tier 1 capital ratio (1) |
12.85 |
% |
12.72 |
% |
12.62 |
% |
12.58 |
% |
12.28 |
% |
||||
Tier 1 leverage ratio (1) |
9.78 |
% |
9.70 |
% |
9.91 |
% |
9.62 |
% |
9.73 |
% |
||||
Common equity tier 1 capital ratio (CET1) (1) |
12.07 |
% |
11.94 |
% |
11.84 |
% |
11.80 |
% |
11.53 |
% |
||||
Tangible common equity ratio (1)(3) |
8.04 |
% |
8.69 |
% |
9.02 |
% |
9.39 |
% |
8.87 |
% |
||||
Liquidity Ratios (%) |
||||||||||||||
Loans to Deposits (1) |
85.78 |
% |
82.17 |
% |
85.07 |
% |
86.01 |
% |
83.63 |
% |
||||
Asset Quality Indicators (%) |
||||||||||||||
Non-performing assets / Total assets (1) |
1.56 |
% |
1.81 |
% |
1.93 |
% |
1.91 |
% |
1.34 |
% |
||||
Non-performing loans / Total gross loans (1) |
2.11 |
% |
2.49 |
% |
2.61 |
% |
2.56 |
% |
1.79 |
% |
||||
Allowance for credit losses / Total non-performing loans |
63.45 |
% |
49.97 |
% |
45.01 |
% |
46.26 |
% |
76.37 |
% |
||||
Allowance for credit losses / Total loans held for investment |
1.36 |
% |
1.27 |
% |
1.21 |
% |
1.20 |
% |
1.37 |
% |
||||
Net charge-offs / Average total loans held for investment (1) |
0.12 |
% |
0.08 |
% |
0.45 |
% |
1.07 |
% |
0.39 |
% |
||||
Efficiency Indicators (% except FTE) |
||||||||||||||
Noninterest expense / Average total assets |
2.68 |
% |
2.73 |
% |
2.74 |
% |
4.14 |
% |
3.01 |
% |
||||
Salaries and employee benefits / Average total assets |
1.43 |
% |
1.41 |
% |
1.31 |
% |
1.50 |
% |
1.36 |
% |
||||
Other operating expenses/ Average total assets (1) |
1.25 |
% |
1.33 |
% |
1.43 |
% |
2.64 |
% |
1.66 |
% |
||||
Efficiency ratio (1) |
63.51 |
% |
68.37 |
% |
68.52 |
% |
95.19 |
% |
69.84 |
% |
||||
FTEs |
687 |
704 |
699 |
694 |
704 |
|||||||||
__________________ |
(1) See Glossary of Terms and Definitions for definitions of financial terms. |
(2) In all periods shown, includes reserves on loans and contingent loans. The (reversal of) provision for unfunded commitments (contingencies) in the third, second and first quarters of 2026, and fourth and third quarters of 2025, were ($2.7 million), ($1.0 million), $1.1 million, $0.7 million and ($0.7 million), respectively. |
(3) Non-GAAP measure. See “Non-GAAP Financial Measures” for more information and Exhibit 2 for a reconciliation to GAAP. |
(4) See 2025 Form 10-K for more information on potential dilutive instruments and their impact on diluted earnings per share computation. |
(5) In all periods shown, the Company’s Board of Directors declared and paid cash dividends of $0.09 per share of the Company’s common stock. In connection with these dividends, the Company paid an aggregate amount of $3.5 million, $3.6 million, $3.7 million, $3.7 million, and $3.8 million, in the third, second, and first quarters of 2026, and fourth and third quarters of 2025, respectively. |
(6) Operating data for the periods presented have been annualized. |
Exhibit 2- Non-GAAP Financial Measures Reconciliation
The following tables set forth selected financial information derived from the Company’s interim unaudited and annual audited consolidated financial statements, adjusted for certain items, including the provision for credit losses, income taxes and goodwill and other intangible assets. The Company believes these adjusted numbers are useful to understand the Company’s performance and underlying trends.
Three Months Ended, |
|||||||||||||||
(in thousands) |
September 30,
|
June 30, 2026 |
March 31, 2026 |
December 31,
|
September 30,
|
||||||||||
Net income attributable to Amerant Bancorp Inc. |
$ |
25,716 |
$ |
21,043 |
$ |
17,873 |
$ |
2,701 |
$ |
14,756 |
|||||
Plus: provision for credit losses (1) |
6,200 |
4,750 |
7,800 |
3,490 |
14,600 |
||||||||||
Plus: provision for income tax expense (benefit) |
7,789 |
6,067 |
5,070 |
(794 |
) |
4,252 |
|||||||||
Pre-tax pre-provision net revenue (PPNR) |
39,705 |
31,860 |
30,743 |
5,397 |
33,608 |
||||||||||
(in thousands, except percentages, share data and per share amounts) |
September 30, 2026 |
June 30, 2026 |
March 31, 2026 |
December 31, 2025 |
September 30, 2025 |
||||||||||||||
Stockholders' equity |
$ |
840,817 |
$ |
914,369 |
$ |
913,918 |
$ |
938,802 |
$ |
944,940 |
|||||||||
Less: goodwill and other intangibles (2) |
(21,389 |
) |
(21,522 |
) |
(22,933 |
) |
(23,103 |
) |
(23,784 |
) |
|||||||||
Tangible common stockholders' equity |
$ |
819,428 |
$ |
892,847 |
$ |
890,985 |
$ |
915,699 |
$ |
921,156 |
|||||||||
Total assets |
10,211,645 |
10,294,247 |
9,903,514 |
9,777,018 |
10,410,199 |
||||||||||||||
Less: goodwill and other intangibles (2) |
(21,389 |
) |
(21,522 |
) |
(22,933 |
) |
(23,103 |
) |
(23,784 |
) |
|||||||||
Tangible assets |
$ |
10,190,256 |
$ |
10,272,725 |
$ |
9,880,581 |
$ |
9,753,915 |
$ |
10,386,415 |
|||||||||
Common shares outstanding |
39,127,237 |
39,186,293 |
39,803,607 |
40,595,273 |
41,265,378 |
||||||||||||||
Tangible common equity ratio |
8.04 |
% |
8.69 |
% |
9.02 |
% |
9.39 |
% |
8.87 |
% |
|||||||||
Stockholders' book value per common share |
$ |
21.49 |
$ |
23.33 |
$ |
22.96 |
$ |
23.13 |
$ |
22.90 |
|||||||||
Tangible stockholders' equity book value per common share |
$ |
20.94 |
$ |
22.78 |
$ |
22.38 |
$ |
22.56 |
$ |
22.32 |
|||||||||
__________________ |
(1) Includes provision for credit losses on loans and provision for loan contingencies. |
(2) As of September 30, 2026 and June 30, 2026, other intangible assets primarily consist of naming rights. In prior periods, also includes mortgage servicing rights (“MSRs”). Other intangible assets are included in other assets in the Company’s consolidated balance sheets. |
Exhibit 3 - Average Balance Sheet, Interest and Yield/Rate Analysis
The following tables present average balance sheet information, interest income, interest expense and the corresponding average yields earned and rates paid for the periods presented. The average balances for loans include both performing and non-performing balances. Interest income on loans includes the effects of discount accretion and the amortization of non-refundable loan origination fees, net of direct loan origination costs, accounted for as yield adjustments. Average balances represent the daily average balances for the periods presented.
Three Months Ended |
||||||||||||||||||||
September 30, 2026 |
June 30, 2026 |
September 30, 2025 |
||||||||||||||||||
(in thousands, except percentages) |
Average Balances |
Income/ Expense |
Yield/ Rates |
Average Balances |
Income/ Expense |
Yield/ Rates |
Average Balances |
Income/ Expense |
Yield/ Rates |
|||||||||||
Interest-earning assets: |
||||||||||||||||||||
Loan portfolio, net (1) |
$ |
6,816,846 |
$ |
109,086 |
6.35 |
% |
$ |
6,674,563 |
$ |
103,449 |
6.22 |
% |
$ |
6,946,370 |
$ |
121,414 |
6.93 |
% |
||
Debt securities available for sale (2) (3) |
2,381,772 |
29,028 |
4.84 |
% |
2,344,767 |
28,302 |
4.84 |
% |
1,973,763 |
24,146 |
4.85 |
% |
||||||||
Debt securities held for trading |
— |
— |
— |
% |
209 |
— |
— |
% |
119,429 |
1,665 |
5.53 |
% |
||||||||
Equity securities with readily determinable fair value not held for trading |
2,496 |
22 |
3.50 |
% |
2,527 |
22 |
3.49 |
% |
2,528 |
20 |
3.14 |
% |
||||||||
Federal Reserve Bank and FHLB stock |
53,374 |
811 |
6.03 |
% |
57,054 |
888 |
6.24 |
% |
57,681 |
906 |
6.23 |
% |
||||||||
Deposits with banks (4) |
253,782 |
2,455 |
3.84 |
% |
324,291 |
2,965 |
3.67 |
% |
413,522 |
4,516 |
4.33 |
% |
||||||||
Other short-term investments |
— |
— |
— |
% |
3,856 |
35 |
3.64 |
% |
7,122 |
76 |
4.23 |
% |
||||||||
Total interest-earning assets |
9,508,270 |
141,402 |
5.90 |
% |
9,407,267 |
135,661 |
5.78 |
% |
9,520,415 |
152,743 |
6.37 |
% |
||||||||
Total noninterest-earning assets (5) |
704,526 |
700,165 |
723,510 |
|||||||||||||||||
Total assets |
$ |
10,212,796 |
$ |
10,107,432 |
$ |
10,243,925 |
||||||||||||||
Three Months Ended |
|||||||||||||||||||||||
September 30, 2026 |
June 30, 2026 |
September 30, 2025 |
|||||||||||||||||||||
(in thousands, except percentages) |
Average Balances |
Income/ Expense |
Yield/ Rates |
Average Balances |
Income/ Expense |
Yield/ Rates |
Average Balances |
Income/ Expense |
Yield/ Rates |
||||||||||||||
Interest-bearing liabilities: |
|||||||||||||||||||||||
Checking and saving accounts |
|||||||||||||||||||||||
Interest bearing demand, savings, and money market deposits (6) |
4,579,959 |
26,548 |
2.30 |
% |
4,618,118 |
27,154 |
2.36 |
% |
4,395,707 |
28,900 |
2.61 |
% |
|||||||||||
Time deposits |
1,910,075 |
16,834 |
3.50 |
% |
1,995,007 |
17,682 |
3.55 |
% |
2,084,940 |
20,950 |
3.99 |
% |
|||||||||||
Total deposits |
6,490,034 |
43,382 |
2.65 |
% |
6,613,125 |
44,836 |
2.72 |
% |
6,480,647 |
49,850 |
3.05 |
% |
|||||||||||
Securities sold under agreements to repurchase |
— |
— |
— |
% |
95 |
1 |
4.22 |
% |
— |
— |
— |
% |
|||||||||||
Advances from the FHLB (7) |
634,927 |
6,098 |
3.81 |
% |
712,801 |
6,935 |
3.90 |
% |
726,520 |
7,316 |
4.00 |
% |
|||||||||||
Senior notes |
7,360 |
147 |
7.92 |
% |
— |
— |
— |
% |
— |
— |
— |
% |
|||||||||||
Subordinated notes |
29,902 |
361 |
4.79 |
% |
29,859 |
362 |
4.86 |
% |
29,731 |
362 |
4.83 |
% |
|||||||||||
Junior subordinated debentures |
64,178 |
950 |
5.87 |
% |
64,178 |
952 |
5.95 |
% |
64,178 |
1,063 |
6.57 |
% |
|||||||||||
Total interest-bearing liabilities |
7,226,401 |
50,938 |
2.80 |
% |
7,420,058 |
53,086 |
2.87 |
% |
7,301,076 |
58,591 |
3.18 |
% |
|||||||||||
Noninterest-bearing liabilities: |
|||||||||||||||||||||||
Noninterest bearing demand deposits |
1,828,805 |
1,533,032 |
1,726,507 |
||||||||||||||||||||
Accounts payable, accrued liabilities and other liabilities |
253,852 |
239,723 |
273,921 |
||||||||||||||||||||
Total noninterest-bearing liabilities |
2,082,657 |
1,772,755 |
2,000,428 |
||||||||||||||||||||
Total liabilities |
9,309,058 |
9,192,813 |
9,301,504 |
||||||||||||||||||||
Stockholders’ equity |
903,738 |
914,619 |
942,421 |
||||||||||||||||||||
Total liabilities and stockholders' equity |
$ |
10,212,796 |
$ |
10,107,432 |
$ |
10,243,925 |
|||||||||||||||||
Excess of average interest-earning assets over average interest-bearing liabilities |
$ |
2,281,869 |
$ |
1,987,209 |
$ |
2,219,339 |
|||||||||||||||||
Net interest income |
$ |
90,464 |
$ |
82,575 |
$ |
94,152 |
|||||||||||||||||
Net interest rate spread |
3.10 |
% |
2.91 |
% |
3.19 |
% |
|||||||||||||||||
Net interest margin (7) |
3.77 |
% |
3.52 |
% |
3.92 |
% |
|||||||||||||||||
Cost of total deposits (7) |
2.07 |
% |
2.21 |
% |
2.41 |
% |
|||||||||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities |
131.58 |
% |
126.78 |
% |
130.40 |
% |
|||||||||||||||||
Average non-performing loans/ Average total loans |
2.30 |
% |
2.55 |
% |
1.30 |
% |
|||||||||||||||||
Nine Months Ended |
|||||||||||||||
September 30, 2026 |
September 30, 2025 |
||||||||||||||
(in thousands, except percentages) |
Average Balances |
Income/ Expense |
Yield/ Rates |
Average Balances |
Income/ Expense |
Yield/ Rates |
|||||||||
Interest-earning assets: |
|||||||||||||||
Loan portfolio, net (1) |
$ |
6,672,710 |
$ |
315,209 |
6.32 |
% |
$ |
7,078,705 |
$ |
364,601 |
6.89 |
% |
|||
Debt securities available for sale (2)(3) |
2,336,361 |
84,130 |
4.81 |
% |
1,740,625 |
64,041 |
4.92 |
% |
|||||||
Debt securities held for trading |
179 |
— |
— |
% |
60,075 |
2,008 |
4.47 |
% |
|||||||
Equity securities with readily determinable fair value not held for trading |
2,525 |
58 |
3.07 |
% |
2,511 |
60 |
3.19 |
% |
|||||||
Federal Reserve Bank and FHLB stock |
55,853 |
2,567 |
6.14 |
% |
57,359 |
2,759 |
6.43 |
% |
|||||||
Deposits with banks (4) |
289,603 |
8,018 |
3.70 |
% |
502,191 |
16,560 |
4.41 |
% |
|||||||
Other short-term investments |
3,653 |
98 |
3.59 |
% |
6,870 |
217 |
4.22 |
% |
|||||||
Total interest-earning assets |
9,360,884 |
410,080 |
5.86 |
% |
9,448,336 |
450,246 |
6.37 |
% |
|||||||
Total non-interest-earning assets (5) |
714,582 |
733,305 |
|||||||||||||
Total assets |
$ |
10,075,466 |
$ |
10,181,641 |
|||||||||||
Interest-bearing liabilities: |
|||||||||||||||
Checking and saving accounts |
|||||||||||||||
Interest bearing demand, savings, and money market deposits (6) |
4,543,021 |
80,067 |
2.36 |
% |
4,344,282 |
85,626 |
2.64 |
% |
|||||||
Time deposits |
1,971,971 |
52,770 |
3.58 |
% |
2,153,720 |
67,093 |
4.17 |
% |
|||||||
Total deposits |
6,514,992 |
132,837 |
2.73 |
% |
6,498,002 |
152,719 |
3.14 |
% |
|||||||
Securities sold under agreements to repurchase |
32 |
1 |
4.18 |
% |
35 |
1 |
3.82 |
% |
|||||||
Advances from the FHLB (7) |
686,409 |
19,879 |
3.87 |
% |
722,493 |
21,746 |
4.02 |
% |
|||||||
Senior notes |
2,480 |
147 |
7.92 |
% |
19,742 |
1,020 |
6.91 |
% |
|||||||
Subordinated notes |
29,859 |
1,084 |
4.85 |
% |
29,689 |
1,084 |
4.88 |
% |
|||||||
Junior subordinated debentures |
64,178 |
2,812 |
5.86 |
% |
64,178 |
3,141 |
6.54 |
% |
|||||||
Total interest-bearing liabilities |
7,297,950 |
156,760 |
2.87 |
% |
7,334,139 |
179,711 |
3.28 |
% |
|||||||
Non-interest-bearing liabilities: |
|||||||||||||||
Non-interest bearing demand deposits |
1,587,733 |
1,636,816 |
|||||||||||||
Accounts payable, accrued liabilities and other liabilities |
267,314 |
287,021 |
|||||||||||||
Total non-interest-bearing liabilities |
1,855,047 |
1,923,837 |
|||||||||||||
Total liabilities |
9,152,997 |
9,257,976 |
|||||||||||||
Stockholders’ equity |
922,469 |
923,665 |
|||||||||||||
Total liabilities and stockholders' equity |
$ |
10,075,466 |
$ |
10,181,641 |
|||||||||||
Excess of average interest-earning assets over average interest-bearing liabilities |
$ |
2,062,934 |
$ |
2,114,197 |
|||||||||||
Net interest income |
$ |
253,320 |
$ |
270,535 |
|||||||||||
Net interest rate spread |
2.99 |
% |
3.09 |
% |
|||||||||||
Net interest margin (7) |
3.62 |
% |
3.83 |
% |
|||||||||||
Cost of total deposits (7) |
2.19 |
% |
2.51 |
% |
|||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities |
128.27 |
% |
128.83 |
% |
|||||||||||
Average non-performing loans/ Average total loans |
2.41 |
% |
1.36 |
% |
|||||||||||
__________________ |
(1) Includes loans held for investment net of the allowance for credit losses, and loans held for sale. Non-performing loans are included in the total loan portfolio balances. |
(2) Includes the average balance of net unrealized gains and losses in the fair value of debt securities available for sale. |
(3) Includes nontaxable securities with average balances of $49.4 million, $51.9 million and $54.2 million for the three months ended September 30, 2026, June 30, 2026 and September 30, 2025, respectively, and $50.4 million and $54.6 million in the nine months ended September 30, 2026 and 2025, respectively. The tax equivalent yield for these nontaxable securities was 4.75%, 4.70%, and 4.60% for the three months ended September 30, 2026, June 30, 2026 and September 30, 2025, respectively, and 4.80% and 4.68% in the nine months ended September 30, 2026 and 2025, respectively. In 2026 and 2025, the tax equivalent yields were calculated assuming a 21% tax rate and dividing the actual yield by 0.79. |
(4) Deposits with banks in this table include time deposits with banks maturing in more than three months that are not considered cash and cash equivalents in the Company's consolidated balance sheet. |
(5) Excludes the allowance for credit losses. |
(6) To emphasize material items, certain line items previously presented separately in prior periods have been aggregated into a single line item in this table. This includes interest-bearing demand, savings, and money market deposits. The presentation for the three and nine months ended September 30, 2025 has been conformed accordingly for comparability. |
(7) See Glossary of Terms and Definitions for definitions of financial terms. |
Exhibit 4 - Noninterest Income
This table shows the amounts of each of the categories of noninterest income for the periods presented.
Three Months Ended |
Nine Months Ended September 30, |
||||||||||||||||||||||||||
September 30, 2026 |
June 30, 2026 |
September 30, 2025 |
2026 |
2025 |
|||||||||||||||||||||||
(in thousands, except percentages) |
Amount |
% |
Amount |
% |
Amount |
% |
Amount |
% |
Amount |
% |
|||||||||||||||||
Deposits and service fees |
$ |
6,184 |
33.7 |
% |
$ |
5,419 |
29.8 |
% |
$ |
5,056 |
29.2 |
% |
$ |
16,475 |
30.6 |
% |
$ |
15,161 |
26.8 |
% |
|||||||
Brokerage, advisory and fiduciary activities |
5,746 |
31.3 |
% |
5,630 |
31.0 |
% |
4,995 |
28.9 |
% |
16,837 |
31.2 |
% |
14,717 |
26.0 |
% |
||||||||||||
Change in cash surrender value of bank owned life insurance (“BOLI”)(1) |
2,690 |
14.7 |
% |
2,629 |
14.5 |
% |
2,554 |
14.8 |
% |
7,883 |
14.6 |
% |
7,494 |
13.2 |
% |
||||||||||||
Cards and trade finance servicing fees |
1,556 |
8.5 |
% |
1,432 |
7.9 |
% |
1,321 |
7.6 |
% |
4,427 |
8.2 |
% |
4,517 |
8.0 |
% |
||||||||||||
Gain on early extinguishment of FHLB advances, net |
621 |
3.4 |
% |
54 |
0.3 |
% |
— |
— |
% |
675 |
1.3 |
% |
— |
— |
% |
||||||||||||
Securities (losses) gains, net (2) |
(26 |
) |
(0.1 |
)% |
408 |
2.2 |
% |
1,203 |
7.0 |
% |
898 |
1.7 |
% |
3,046 |
5.4 |
% |
|||||||||||
Loan-level derivative income (3) |
536 |
2.9 |
% |
1,174 |
6.5 |
% |
2,372 |
13.7 |
% |
3,241 |
6.0 |
% |
7,084 |
12.5 |
% |
||||||||||||
Derivative losses, net (4) |
— |
— |
% |
— |
— |
% |
(1,383 |
) |
(8.0 |
)% |
— |
— |
% |
(3,235 |
) |
(5.7 |
)% |
||||||||||
Other noninterest income (5) |
1,032 |
5.6 |
% |
1,416 |
7.8 |
% |
1,173 |
6.8 |
% |
3,446 |
6.4 |
% |
7,810 |
13.8 |
% |
||||||||||||
Total noninterest income |
$ |
18,339 |
100.0 |
% |
$ |
18,162 |
100.0 |
% |
$ |
17,291 |
100.0 |
% |
$ |
53,882 |
100.0 |
% |
$ |
56,594 |
100.0 |
% |
|||||||
__________________ |
(1) Changes in cash surrender value of BOLI are not taxable. |
(2) There were insignificant gains on the sale of debt securities available for sale in the three months ended September 30, 2026. In the three months ended June 30, 2026, includes realized gains on the sale of debt securities available for sale of $0.4 million. In the nine months ended September 30, 2026, includes realized gains on the sale of debt securities available for sale of $0.9 million. In the three and nine months ended September 30, 2025, amounts are primarily in connection with gains on market valuation of trading securities. |
(3) Income from interest rate swaps and other derivative transactions with customers. |
(4) In the three and nine months ended September 30, 2025, includes net unrealized losses in connection with TBA MBS derivative contracts. |
(5) Other sources of income in the periods shown include foreign currency exchange transactions with customers, mortgage banking income and loss and other smaller revenue streams. |
Exhibit 5 - Noninterest Expense
This table shows the amounts of each of the categories of noninterest expense for the periods presented.
Three Months Ended |
Nine Months Ended September 30, |
||||||||||||||||||||||||||
September 30, 2026 |
June 30, 2026 |
September 30, 2025 |
2026 |
2025 |
|||||||||||||||||||||||
(in thousands, except percentages) |
Amount |
% |
Amount |
% |
Amount |
% |
Amount |
% |
Amount |
% |
|||||||||||||||||
Salaries and employee benefits |
$ |
36,895 |
53.4 |
% |
$ |
35,446 |
51.5 |
% |
$ |
35,094 |
45.1 |
% |
$ |
104,381 |
50.9 |
% |
$ |
104,477 |
46.7 |
% |
|||||||
Occupancy and equipment |
5,899 |
8.5 |
% |
4,995 |
7.3 |
% |
5,211 |
6.7 |
% |
16,317 |
8.0 |
% |
16,838 |
7.5 |
% |
||||||||||||
Professional and other services fees |
15,257 |
22.1 |
% |
13,087 |
19.0 |
% |
15,997 |
20.6 |
% |
39,760 |
19.4 |
% |
44,228 |
19.8 |
% |
||||||||||||
Telecommunications and data processing |
3,428 |
5.0 |
% |
3,627 |
5.3 |
% |
3,155 |
4.1 |
% |
10,592 |
5.2 |
% |
9,559 |
4.3 |
% |
||||||||||||
Depreciation and amortization |
1,397 |
2.0 |
% |
1,472 |
2.1 |
% |
1,487 |
1.9 |
% |
4,386 |
2.1 |
% |
4,626 |
2.1 |
% |
||||||||||||
FDIC assessments and insurance |
2,701 |
3.9 |
% |
2,472 |
3.6 |
% |
2,549 |
3.3 |
% |
8,023 |
3.9 |
% |
8,681 |
3.9 |
% |
||||||||||||
(Reversals) losses on loans held for sale carried at the lower of cost or fair value, net (1) |
(65 |
) |
(0.1 |
)% |
1,118 |
1.6 |
% |
881 |
1.1 |
% |
2,876 |
1.4 |
% |
881 |
0.4 |
% |
|||||||||||
Advertising expenses |
2,378 |
3.4 |
% |
4,274 |
6.2 |
% |
3,987 |
5.1 |
% |
9,591 |
4.7 |
% |
12,441 |
5.6 |
% |
||||||||||||
Other real estate owned and repossessed assets (income) expense, net |
(1,308 |
) |
(1.9 |
)% |
(253 |
) |
(0.4 |
)% |
215 |
0.3 |
% |
(1,793 |
) |
(0.9 |
)% |
980 |
0.4 |
% |
|||||||||
Other operating expenses (2) (3) |
2,516 |
3.7 |
% |
2,639 |
3.8 |
% |
9,259 |
11.8 |
% |
10,761 |
5.3 |
% |
21,078 |
9.3 |
% |
||||||||||||
Total noninterest expense |
$ |
69,098 |
100.0 |
% |
$ |
68,877 |
100.0 |
% |
$ |
77,835 |
100.0 |
% |
$ |
204,894 |
100.0 |
% |
$ |
223,789 |
100.0 |
% |
|||||||
__________________ |
(1) Includes losses on sale and valuation allowance provisions and releases on losses on loans held for sale. |
(2) For a detailed discussion of the key components of other operating expenses, see the Company’s Form 10-K for the year ended December 31, 2025. |
(3) Loan-level derivative expenses previously presented separately for the three and nine month periods ended September 30, 2025, have been reclassified and are now included in this category. |
Exhibit 6 - Consolidated Balance Sheets
(in thousands, except share data) |
September 30,
|
June 30, 2026 |
March 31, 2026 |
December 31,
|
September 30,
|
|||||||||||||
Assets |
(audited) |
|||||||||||||||||
Cash and due from banks and restricted cash |
$ |
61,800 |
$ |
41,042 |
$ |
63,416 |
$ |
53,478 |
$ |
53,084 |
||||||||
Interest earning deposits with banks |
299,670 |
260,090 |
117,997 |
409,444 |
570,612 |
|||||||||||||
Other short-term investments |
— |
— |
7,294 |
7,233 |
7,162 |
|||||||||||||
Cash and cash equivalents and restricted cash |
361,470 |
301,132 |
188,707 |
470,155 |
630,858 |
|||||||||||||
Time deposits with other banks |
500 |
500 |
— |
— |
— |
|||||||||||||
Securities |
||||||||||||||||||
Debt securities available for sale, at fair value |
2,166,041 |
2,549,256 |
2,370,308 |
2,024,883 |
2,122,416 |
|||||||||||||
Trading securities |
— |
— |
— |
— |
119,935 |
|||||||||||||
Equity securities with readily determinable fair value not held for trading |
2,435 |
2,537 |
2,528 |
2,548 |
2,542 |
|||||||||||||
Federal Reserve Bank and Federal Home Loan Bank stock |
57,152 |
56,625 |
58,048 |
57,138 |
62,808 |
|||||||||||||
Securities |
2,225,628 |
2,608,418 |
2,430,884 |
2,084,569 |
2,307,701 |
|||||||||||||
Loans held for sale, at the lower of cost or fair value (1) |
95,847 |
122,172 |
190,014 |
80,912 |
— |
|||||||||||||
Mortgage loans held for sale, at fair value |
737 |
389 |
895 |
2,932 |
— |
|||||||||||||
Loans held for investment, gross |
6,976,861 |
6,743,066 |
6,562,872 |
6,613,391 |
6,941,792 |
|||||||||||||
Less: Allowance for credit losses (2) |
94,845 |
85,499 |
79,236 |
79,276 |
94,918 |
|||||||||||||
Loans held for investment, net |
6,882,016 |
6,657,567 |
6,483,636 |
6,534,115 |
6,846,874 |
|||||||||||||
Bank owned life insurance |
268,052 |
265,362 |
263,208 |
260,644 |
258,042 |
|||||||||||||
Deferred tax assets, net |
78,120 |
47,656 |
42,532 |
35,566 |
46,881 |
|||||||||||||
Operating lease right-of-use assets |
106,083 |
107,522 |
108,980 |
110,588 |
102,872 |
|||||||||||||
Accrued interest receivable and other assets |
193,192 |
183,529 |
194,658 |
197,537 |
216,971 |
|||||||||||||
Total assets |
$ |
10,211,645 |
$ |
10,294,247 |
$ |
9,903,514 |
$ |
9,777,018 |
$ |
10,410,199 |
||||||||
Liabilities and Stockholders' Equity |
||||||||||||||||||
Deposits |
||||||||||||||||||
Demand |
||||||||||||||||||
Noninterest bearing |
$ |
2,081,886 |
$ |
1,708,111 |
$ |
1,466,670 |
$ |
1,573,301 |
$ |
1,768,764 |
||||||||
Interest bearing demand, savings and money market |
4,236,579 |
4,736,160 |
4,425,019 |
4,217,594 |
4,434,274 |
|||||||||||||
Time |
1,927,207 |
1,911,037 |
2,047,412 |
1,996,039 |
2,097,931 |
|||||||||||||
Total deposits |
8,245,672 |
8,355,308 |
7,939,101 |
7,786,934 |
8,300,969 |
|||||||||||||
Advances from the Federal Home Loan Bank |
715,000 |
702,608 |
732,263 |
711,984 |
831,699 |
|||||||||||||
Senior notes |
48,366 |
— |
— |
— |
— |
|||||||||||||
Subordinated notes |
29,922 |
29,880 |
29,837 |
29,795 |
29,752 |
|||||||||||||
Junior subordinated debentures held by trust subsidiaries |
64,178 |
64,178 |
64,178 |
64,178 |
64,178 |
|||||||||||||
Operating lease liabilities (3) |
113,939 |
115,310 |
116,456 |
117,456 |
109,726 |
|||||||||||||
Accounts payable, accrued liabilities and other liabilities |
153,751 |
112,594 |
107,761 |
127,869 |
128,935 |
|||||||||||||
Total liabilities |
9,370,828 |
9,379,878 |
8,989,596 |
8,838,216 |
9,465,259 |
|||||||||||||
Stockholders’ equity |
||||||||||||||||||
Class A common stock |
3,912 |
3,917 |
3,978 |
4,058 |
4,125 |
|||||||||||||
Additional paid in capital |
282,446 |
283,037 |
297,503 |
316,067 |
327,205 |
|||||||||||||
Retained earnings |
673,332 |
651,145 |
633,716 |
619,552 |
620,542 |
|||||||||||||
Accumulated other comprehensive loss |
(118,873 |
) |
(23,730 |
) |
(21,279 |
) |
(875 |
) |
(6,932 |
) |
||||||||
Total stockholders' equity |
840,817 |
914,369 |
913,918 |
938,802 |
944,940 |
|||||||||||||
Total liabilities and stockholders' equity |
$ |
10,211,645 |
$ |
10,294,247 |
$ |
9,903,514 |
$ |
9,777,018 |
$ |
10,410,199 |
||||||||
__________________ |
(1) As of September 30, 2026, June 30, 2026, March 31, 2026 and December 31, 2025, includes valuation allowances of $2.4 million, $2.7 million, $3.4 million and $13.8 million, respectively. |
(2) In the first quarter of 2026, the Company early adopted ASU 2025‑08, which expands the use of the gross‑up approach for certain purchased loans and eliminates Day 1 credit loss expense. As a result, in the third, second and first quarters of 2026, the Company recorded an allowance for credit losses of $2.5 million, $1.9 million and $0.5 million, respectively, on approximately $190.6 million, $149.5 million and $36.8 million of acquired loans, respectively, with no Day 1 impact to earnings. |
(3) Consists of total long-term lease liabilities. Total short-term lease liabilities are included in other liabilities. |
Exhibit 7 - Loans
Loans by Type - Held For Investment
The loan portfolio held for investment consists of the following loan classes:
(in thousands) |
September 30,
|
June 30,
|
March 31,
|
December 31,
|
September 30,
|
|||||||||
Real estate loans |
(audited) |
|||||||||||||
Commercial real estate |
||||||||||||||
Non-owner occupied |
$ |
1,468,739 |
$ |
1,526,962 |
$ |
1,501,909 |
$ |
1,591,861 |
$ |
1,656,180 |
||||
Multi-family residential |
220,001 |
234,116 |
261,332 |
322,447 |
361,650 |
|||||||||
Land development and construction loans |
500,872 |
512,272 |
505,007 |
534,028 |
544,727 |
|||||||||
2,189,612 |
2,273,350 |
2,268,248 |
2,448,336 |
2,562,557 |
||||||||||
Single-family residential |
2,159,674 |
1,954,193 |
1,680,768 |
1,515,181 |
1,550,724 |
|||||||||
Owner occupied |
710,758 |
732,190 |
790,445 |
809,336 |
900,596 |
|||||||||
5,060,044 |
4,959,733 |
4,739,461 |
4,772,853 |
5,013,877 |
||||||||||
Commercial loans |
1,657,316 |
1,488,182 |
1,485,438 |
1,446,406 |
1,519,778 |
|||||||||
Loans to financial institutions and acceptances |
49,502 |
85,492 |
112,667 |
148,602 |
164,974 |
|||||||||
Consumer loans and overdrafts |
209,999 |
209,659 |
225,306 |
245,530 |
243,163 |
|||||||||
Total loans |
$ |
6,976,861 |
$ |
6,743,066 |
$ |
6,562,872 |
$ |
6,613,391 |
$ |
6,941,792 |
||||
Loans by Type - Held For Sale
The loan portfolio held for sale consists of the following loan classes:
(in thousands) |
September 30,
|
June 30,
|
March 31,
|
December 31,
|
September 30,
|
|||||||||
Loans held for sale at the lower of cost or fair value |
(audited) |
|||||||||||||
Real estate loans |
||||||||||||||
Commercial real estate |
||||||||||||||
Non-owner occupied |
$ |
59,826 |
$ |
63,296 |
$ |
63,908 |
$ |
43,406 |
$ |
— |
||||
Multi-family residential |
— |
22,722 |
60,794 |
— |
— |
|||||||||
Land development and construction loans |
23,626 |
23,639 |
52,613 |
22,339 |
— |
|||||||||
83,452 |
109,657 |
177,315 |
65,745 |
— |
||||||||||
Owner occupied |
12,395 |
12,515 |
12,699 |
15,167 |
— |
|||||||||
95,847 |
122,172 |
190,014 |
80,912 |
— |
||||||||||
Total loans held for sale at the lower of cost or fair value |
95,847 |
122,172 |
190,014 |
80,912 |
— |
|||||||||
Mortgage loans held for sale at fair value |
||||||||||||||
Single-family residential |
737 |
389 |
895 |
2,932 |
— |
|||||||||
Total mortgage loans held for sale at fair value |
737 |
389 |
895 |
2,932 |
— |
|||||||||
Total loans held for sale |
$ |
96,584 |
$ |
122,561 |
$ |
190,909 |
$ |
83,844 |
$ |
— |
||||
Non-Performing Assets
This table shows a summary of our non-performing assets by loan class, which includes non-performing loans, other real estate owned, or OREO, and other repossessed assets at the dates presented. Non-performing loans consist of (i) nonaccrual loans, and (ii) accruing loans 90 days or more contractually past due as to interest or principal.
(in thousands) |
September 30,
|
June 30,
|
March 31,
|
December 31,
|
September 30,
|
|||||||||
Non-Accrual Loans |
(audited) |
|||||||||||||
Real Estate Loans |
||||||||||||||
Commercial real estate (CRE) |
||||||||||||||
Non-owner occupied |
$ |
4,677 |
$ |
9,386 |
$ |
11,172 |
$ |
4,288 |
$ |
4,374 |
||||
Multi-family residential |
377 |
429 |
— |
— |
7,018 |
|||||||||
Land development and construction loans (1) |
— |
— |
— |
16,200 |
19,577 |
|||||||||
5,054 |
9,815 |
11,172 |
20,488 |
30,969 |
||||||||||
Single-family residential |
31,077 |
31,180 |
27,346 |
26,082 |
8,838 |
|||||||||
Owner occupied |
24,833 |
40,506 |
40,745 |
28,733 |
15,287 |
|||||||||
60,964 |
81,501 |
79,263 |
75,303 |
55,094 |
||||||||||
Commercial loans |
79,452 |
79,020 |
85,481 |
83,761 |
67,081 |
|||||||||
Consumer loans and overdrafts |
7,667 |
8,317 |
8,969 |
9,204 |
725 |
|||||||||
Total Non-Accrual Loans (1) |
$ |
148,083 |
$ |
168,838 |
$ |
173,713 |
$ |
168,268 |
$ |
122,900 |
||||
Past Due Accruing Loans |
||||||||||||||
Real Estate Loans |
||||||||||||||
Commercial real estate (CRE) |
||||||||||||||
Single-family residential |
179 |
— |
— |
— |
— |
|||||||||
Owner occupied |
1,220 |
— |
— |
730 |
— |
|||||||||
Commercial |
— |
2,252 |
2,337 |
2,372 |
1,392 |
|||||||||
Consumer loans and overdrafts |
— |
— |
— |
— |
— |
|||||||||
Total Past Due Accruing Loans (2) |
$ |
1,399 |
$ |
2,252 |
$ |
2,337 |
$ |
3,102 |
$ |
1,392 |
||||
Total Non-Performing Loans |
149,482 |
171,090 |
176,050 |
171,370 |
124,292 |
|||||||||
Other Real Estate Owned |
10,044 |
15,542 |
15,542 |
15,542 |
15,606 |
|||||||||
Total Non-Performing Assets (1) |
$ |
159,526 |
$ |
186,632 |
$ |
191,592 |
$ |
186,912 |
$ |
139,898 |
||||
__________________ |
(1) At December 31, 2025, balances included $16.2 million in land development and construction loans held for sale, which were sold in January 2026. There were no loans both classified as held for sale and in non-performing status in any of the other periods shown. |
(2) Loans past due 90 days or more but still accruing. |
Loans by Credit Quality Indicators
This table shows the Company’s loans by credit quality indicators. The Company has not purchased credit-deteriorated loans.
September 30, 2026 |
June 30, 2026 |
September 30, 2025 |
||||||||||||||||||||||||
(in thousands) |
Special Mention |
Substandard |
Doubtful |
Total (1) |
Special Mention |
Substandard |
Doubtful |
Total (1) |
Special Mention |
Substandard |
Doubtful |
Total (1) |
||||||||||||||
Real Estate Loans |
||||||||||||||||||||||||||
Commercial Real Estate (CRE) |
||||||||||||||||||||||||||
Non-owner occupied |
$ |
75,800 |
$ |
20,454 |
$ |
— |
$ |
96,254 |
$ |
67,222 |
$ |
25,211 |
$ |
— |
$ |
92,433 |
$ |
53,284 |
$ |
42,406 |
$ |
— |
$ |
95,690 |
||
Multi-family residential |
— |
377 |
— |
377 |
— |
429 |
— |
429 |
— |
29,430 |
— |
29,430 |
||||||||||||||
Land development and construction loans |
35,901 |
— |
— |
35,901 |
35,939 |
— |
— |
35,939 |
3,959 |
19,577 |
— |
23,536 |
||||||||||||||
111,701 |
20,831 |
— |
132,532 |
103,161 |
25,640 |
— |
128,801 |
57,243 |
91,413 |
— |
148,656 |
|||||||||||||||
Single-family residential |
2,500 |
31,077 |
— |
33,577 |
— |
31,229 |
31,229 |
738 |
8,717 |
— |
9,455 |
|||||||||||||||
Owner occupied |
4,964 |
61,478 |
— |
66,442 |
4,985 |
77,964 |
— |
82,949 |
45,365 |
35,085 |
— |
80,450 |
||||||||||||||
119,165 |
113,386 |
— |
232,551 |
108,146 |
134,833 |
— |
242,979 |
103,346 |
135,215 |
— |
238,561 |
|||||||||||||||
Commercial loans |
1,555 |
91,917 |
— |
93,472 |
1,634 |
95,741 |
— |
97,375 |
120,997 |
105,905 |
— |
226,902 |
||||||||||||||
Loans to financial institutions and acceptances |
— |
— |
— |
— |
— |
34,210 |
— |
34,210 |
— |
— |
— |
|||||||||||||||
Consumer loans and overdrafts |
— |
7,667 |
— |
7,667 |
— |
8,317 |
— |
8,317 |
— |
725 |
725 |
|||||||||||||||
Total |
$ |
120,720 |
$ |
212,970 |
$ |
— |
$ |
333,690 |
$ |
109,780 |
$ |
273,101 |
$ |
— |
$ |
382,881 |
$ |
224,343 |
$ |
241,845 |
$ |
— |
$ |
466,188 |
||
__________________ |
(1) There were no loans categorized as “loss” as of the dates presented. |
Exhibit 8 - Deposits by Country of Domicile
This table shows the Company’s deposits by country of domicile of the depositor as of the dates presented.
(in thousands) |
September 30,
|
June 30,
|
March 31,
|
December 31,
|
September 30,
|
|||||||||
(audited) |
||||||||||||||
Domestic |
$ |
5,033,484 |
$ |
5,133,588 |
$ |
5,228,588 |
$ |
5,168,371 |
$ |
5,732,799 |
||||
Foreign: |
||||||||||||||
Venezuela |
2,395,066 |
2,491,875 |
2,005,521 |
1,910,980 |
1,881,871 |
|||||||||
Others |
817,122 |
729,845 |
704,992 |
707,583 |
686,299 |
|||||||||
Total foreign |
3,212,188 |
3,221,720 |
2,710,513 |
2,618,563 |
2,568,170 |
|||||||||
Total deposits |
$ |
8,245,672 |
$ |
8,355,308 |
$ |
7,939,101 |
$ |
7,786,934 |
$ |
8,300,969 |
||||
Glossary of Terms and Definitions
- Assets under management and custody: consists of assets held for clients in an agency or fiduciary capacity which are not assets of the Company and therefore are not included in the consolidated financial statements.
- Classified loans: consist of loans that have been adversely classified due to credit risk and are categorized as substandard and doubtful.
- Common equity tier 1 capital ratio, CET1: Tier 1 capital divided by total risk-weighted assets.
- Core deposits: consist of total deposits excluding all time deposits.
- Cost of total deposits: calculated based upon the average balance of total noninterest bearing and interest bearing deposits, which includes time deposits.
- Efficiency ratio: total noninterest expense divided by the sum of noninterest income and NII.
- FTEs: full-time equivalent employees
- Loans to Deposits ratio: calculated as the ratio of total gross loans divided by total deposits.
- Net interest margin, or NIM: defined as net interest income, or NII, divided by average interest-earning assets, which are loans, securities, deposits with banks and other financial assets which yield interest or similar income.
- Non-performing assets include all accruing loans past due by 90 days or more, all nonaccrual loans and other real estate owned (“OREO”) properties acquired through or in lieu of foreclosure, and other repossessed assets.
- Non-performing loans include all accruing loans past due by 90 days or more and all nonaccrual loans.
- Other operating expenses: total noninterest expense less salary and employee benefits.
- Ratio for net charge-offs/average total loans held for investment: calculated based upon the average daily balance of outstanding loan principal balance net of unamortized deferred loan origination fees and costs, excluding the allowance for credit losses.
- ROA is calculated based upon the average daily balance of total assets.
- ROE is calculated based upon the average daily balance of stockholders’ equity.
- Tangible common equity ratio: calculated as the ratio of common equity less goodwill and other intangibles divided by total assets less goodwill and other intangible assets. Other intangible assets primarily consist of naming rights and mortgage servicing rights and are included in other assets in the Company’s consolidated balance sheets.
- The terms of the FHLB advance agreements require the Bank to maintain certain investment securities or loans as collateral for these advances.
- Tier 1 capital: Tier 1 capital is composed of Common Equity Tier 1 (CET1) capital plus outstanding qualifying trust preferred securities of $62.3 million at each of the dates presented.
- Tier 1 leverage ratio: Tier 1 capital divided by quarter to date average assets.
- Total capital ratio: total qualifying regulatory stockholders’ equity divided by total risk-weighted assets, calculated according to the standardized regulatory capital ratio calculations.
- Total gross loans: consists of the principal balance of outstanding loans, including loans held for investment, loans held for sale at the lower of cost or fair value, and mortgage loans held for sale, net of unamortized deferred nonrefundable loan origination fees and loan origination costs, unamortized premiums paid on purchased loans and the unamortized balance of initial allowance for credit losses on purchased seasoned loans.
- Total revenue is the result of net interest income before provision for credit losses plus noninterest income.