First Quarter 2026
- Net Earnings of
$51.0 million , or$0.38 per share - Return on Average Assets of 1.33%
- Net Interest Margin of 3.44%
For the first quarter of 2026, annualized return on average equity (“ROAE”) was 8.86%, annualized return on average tangible common equity (“ROATCE”) was 13.38%, and annualized return on average assets (“ROAA”) was 1.33%.
On
Highlights for the First Quarter of 2026
- Pretax pre-provision income[1] grew by
$4.0 million or 6% from Q1 of 2025 - Net interest income grew by
$7.4 million , or 6.7% from Q1 of 2025 - Net interest margin of 3.44% increased by 13 basis points from Q1 of 2025
- Cost of funds decreased to 0.97% from 1.04 % in Q1 of 2025
- Provision for credit losses of
$3.0 million vs.$2 million recapture of credit losses in Q1 of 2025 - Loan growth of
$280 million , or 3.3% from the end of Q1 of 2025 - Avg. total deposit and customer repurchase agreements grew by
$288 million , or 2.4% from Q1 of 2025 - Adjusted efficiency ratio of 44.6%, excluding acquisition expense and provision for unfunded loan commitments[1]
INCOME STATEMENT HIGHLIGHTS
| Three Months Ended | |||||||||||
2026 | 2025 | 2025 | |||||||||
| (Dollars in thousands, except per share amounts) | |||||||||||
| Net interest income | $ | 117,840 | $ | 122,658 | $ | 110,444 | |||||
| Provision for (recapture of) credit losses | 3,000 | (2,500 | ) | (2,000 | ) | ||||||
| Noninterest income | 14,279 | 11,193 | 16,229 | ||||||||
| Noninterest expense | 60,568 | 61,988 | 59,144 | ||||||||
| Income tax expense | 17,549 | 19,319 | 18,425 | ||||||||
| Net earnings | $ | 51,002 | $ | 55,044 | $ | 51,104 | |||||
| Earnings per common share: | |||||||||||
| Basic | $ | 0.38 | $ | 0.40 | $ | 0.37 | |||||
| Diluted | $ | 0.38 | $ | 0.40 | $ | 0.36 | |||||
| NIM - tax equivalent (“TE”) [1] | 3.44 | % | 3.49 | % | 3.31 | % | |||||
| ROAA | 1.33 | % | 1.40 | % | 1.37 | % | |||||
| ROAE | 8.86 | % | 9.48 | % | 9.31 | % | |||||
| ROATCE | 13.38 | % | 14.41 | % | 14.51 | % | |||||
| Efficiency ratio | 45.84 | % | 46.31 | % | 46.69 | % | |||||
| [1] Includes tax equivalent (TE) adjustments utilizing a federal statutory rate of 21%. | |||||||||||
Net Interest Income
Net interest income was
The
__________________________________________________________________________________________________
[1] Non-
Net Interest Margin
Our tax equivalent net interest margin was 3.44% for the first quarter of 2026, compared to 3.49% for the fourth quarter of 2025 and 3.31% for the first quarter of 2025. The five basis points decrease in our net interest margin compared to the fourth quarter of 2025 was primarily attributable to an eight basis points decrease in our average interest-earning assets yield, offset by a four basis point decrease in cost of funds. The decrease in our average interest-earning assets yield was primarily driven by a 15 basis points decrease in our average loan yield, as the loan yield in the fourth quarter of 2025 was impacted by the collection of
Our tax equivalent net interest margin for the first quarter of 2026 increased by 13 basis points compared to the first quarter of 2025, due to a seven basis point increase in the average interest-earning assets yield and a seven basis point decrease in cost of funds. The increase in earning assets yield was primarily due to a 10 basis point increase in average loan yields. Partially offsetting the increased loan yield was a 75 basis points decrease in the yield on funds deposited at the
Earning Assets and Deposits
On average, earning assets decreased by
The average balance on noninterest-bearing deposits decreased by
SELECTED FINANCIAL HIGHLIGHTS
| Three Months Ended | ||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||
| Yield on average investment securities (TE) | 2.63% | 2.69% | 2.63% | |||||||||||||||||||||||
| Yield on average loans | 5.32% | 5.47% | 5.22% | |||||||||||||||||||||||
| Yield on average earning assets (TE) | 4.35% | 4.43% | 4.28% | |||||||||||||||||||||||
| Cost of deposits | 0.78% | 0.82% | 0.86% | |||||||||||||||||||||||
| Cost of funds | 0.97% | 1.01% | 1.04% | |||||||||||||||||||||||
| Net interest margin (TE) | 3.44% | 3.49% | 3.31% | |||||||||||||||||||||||
| Average Earning Assets Mix | Avg | % of Total | Avg | % of Total | Avg | % of Total | ||||||||||||||||||||
| Total investment securities | $ | 4,921,215 | 35.43 | % | $ | 4,946,732 | 35.27 | % | $ | 4,908,718 | 36.21 | % | ||||||||||||||
| Investment in FHLB, FRB, and other stock | 55,948 | 0.40 | % | 33,681 | 0.24 | % | 18,012 | 0.13 | % | |||||||||||||||||
| Interest-earning deposits with other institutions | 290,536 | 2.09 | % | 528,211 | 3.77 | % | 162,389 | 1.20 | % | |||||||||||||||||
| Loans | 8,624,604 | 62.08 | % | 8,517,188 | 60.72 | % | 8,467,465 | 62.46 | % | |||||||||||||||||
| Total interest-earning assets | $ | 13,892,303 | 100.00 | % | $ | 14,025,812 | 100.00 | % | $ | 13,556,584 | 100.00 | % | ||||||||||||||
| Average Deposits & Borrowings | Avg | % of Total | Avg | % of Total | Avg | % of Total | ||||||||||||||||||||
| Noninterest bearing deposits | $ | 6,894,427 | 53.12 | % | $ | 7,001,471 | 53.52 | % | $ | 7,006,357 | 55.15 | % | ||||||||||||||
| Interest-bearing deposits | 5,041,899 | 38.85 | % | 5,087,709 | 38.89 | % | 4,866,318 | 38.31 | % | |||||||||||||||||
| Customer repurchase agreements | 541,881 | 4.18 | % | 493,886 | 3.77 | % | 317,322 | 2.50 | % | |||||||||||||||||
| FHLB advances and other borrowings | 500,000 | 3.85 | % | 500,000 | 3.82 | % | 513,078 | 4.04 | % | |||||||||||||||||
| Total deposits and borrowings | $ | 12,978,207 | 100.00 | % | $ | 13,083,066 | 100.00 | % | $ | 12,703,075 | 100.00 | % | ||||||||||||||
Provision for Credit Losses
There was a
Noninterest Income
Noninterest income totaled
Noninterest Expense
Noninterest expense totaled
As a percentage of average assets, noninterest expense was 1.58% for the first quarter of 2026, 1.57% for the fourth quarter of 2025, and 1.58% for the first quarter of 2025. The efficiency ratio was 45.84% for the first quarter of 2026, compared to 46.31% for the fourth quarter of 2025 and 46.69% for the first quarter of 2025. Excluding acquisition related expenses and decrease in provision for unfunded loan commitment, the adjusted efficiency ratio[1] was 44.61% for the first quarter of 2026, compared to 44.40% for the fourth quarter of 2025 and 46.30% for the first quarter of 2025.
Income Taxes
Our effective tax rate for the quarter ended
BALANCE SHEET HIGHLIGHTS
Assets
Total assets were
Total assets at
Total investment securities were
At
At
Loans
Total loans and leases, at amortized cost, of
__________________________________________________________________________________________________
[1] Non-GAAP financial measures. Reconciliations of the GAAP to non–GAAP measures are set forth at the end of this press release.
The increase from
Asset Quality
During the first quarter of 2026, we experienced credit charge-offs of
Nonperforming loans, defined as nonaccrual loans, including modified loans on nonaccrual, plus loans 90 days past due and accruing interest, and nonperforming assets, defined as nonperforming plus OREO, are highlighted below.
| Nonperforming Assets and Delinquency Trends | 2026 | 2025 | 2025 | |||||||||
| (Dollars in thousands) | ||||||||||||
| Nonperforming loans | ||||||||||||
| Commercial real estate | $ | 2,094 | $ | 4,186 | $ | 24,379 | ||||||
| SBA | 477 | 21 | 1,024 | |||||||||
| Commercial and industrial | 3,573 | 478 | 173 | |||||||||
| Dairy & livestock and agribusiness | - | - | 60 | |||||||||
| Total | $ | 6,144 | $ | 4,685 | $ | 25,636 | ||||||
| % of Total loans | 0.07 | % | 0.05 | % | 0.31 | % | ||||||
| OREO | ||||||||||||
| Commercial real estate | $ | 206 | $ | 163 | $ | 495 | ||||||
| Total | $ | 206 | $ | 163 | $ | 495 | ||||||
| Total nonperforming assets | $ | 6,350 | $ | 4,848 | $ | 26,131 | ||||||
| % of Nonperforming assets to total assets | 0.04 | % | 0.03 | % | 0.17 | % | ||||||
| Past due 30-89 days (accruing) | ||||||||||||
| Commercial real estate | $ | 4,715 | $ | 2,887 | $ | - | ||||||
| SBA | 1,553 | 30 | 718 | |||||||||
| Commercial and industrial | 88 | 261 | - | |||||||||
| SFR mortgage | 249 | - | - | |||||||||
| Total | $ | 6,605 | $ | 3,178 | $ | 718 | ||||||
| % of Total loans | 0.08 | % | 0.04 | % | 0.01 | % | ||||||
| Total nonperforming, OREO, and past due | $ | 12,955 | $ | 8,026 | $ | 26,849 | ||||||
| Classified Loans | $ | 83,058 | $ | 52,701 | $ | 94,169 | ||||||
The
Classified loans are loans that are graded “substandard” or worse. Classified loans increased
Deposits & Customer Repurchase Agreements
Deposits of
Noninterest-bearing deposits were
Borrowings
As of
Capital
The Company’s total equity was
Our capital ratios under the revised capital framework referred to as Basel III remain well above regulatory standards.
| Minimum Required Plus Capital Conservation Buffer | 2026 | 2025 | 2025 | |||||||||
| Tier 1 leverage capital ratio | 4.0 | % | 11.9 | % | 11.6 | % | 11.8 | % | ||||
| Common equity Tier 1 capital ratio | 7.0 | % | 16.3 | % | 15.9 | % | 16.5 | % | ||||
| Tier 1 risk-based capital ratio | 8.5 | % | 16.3 | % | 15.9 | % | 16.5 | % | ||||
| Total risk-based capital ratio | 10.5 | % | 17.1 | % | 16.7 | % | 17.3 | % | ||||
| Tangible common equity (“TCE”) ratio | 10.5 | % | 10.3 | % | 10.0 | % | ||||||
CitizensTrust
As of
Corporate Overview
Shares of
Conference Call
Management will hold a conference call at
The conference call will also be simultaneously webcast over the Internet; please visit our
Forward-Looking Statements
Certain statements set forth herein constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “will likely result”, “aims”, “anticipates”, “believes”, “could”, “estimates”, “expects”, “hopes”, “intends”, “may”, “plans”, “projects”, “seeks”, “should”, “will,” “strategy”, “possibility”, and variations of these words and similar expressions help to identify these forward-looking statements, which involve risks and uncertainties that could cause actual results or performance to differ materially from those projected. These forward-looking statements are based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company including, without limitation, plans, strategies, goals and statements about the Company’s outlook regarding revenue and asset growth, financial performance and profitability, capital and liquidity levels, loan and deposit levels, growth and retention, yields and returns, loan diversification and credit management, stockholder value creation, tax rates, the impact of business, economic, or political developments, the impact of monetary, fiscal and trade policies, and the impact of acquisitions we have made or may make, including our recent acquisition of Heritage Commerce Corp (“Heritage”) and its principal banking subsidiary,
General risks and uncertainties include, but are not limited to, the following: the strength of
Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Company's 2025 Annual Report on Form 10-K filed with the
The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements, except as required by law. Any statements about future operating results, such as those concerning accretion and dilution to the Company’s earnings, equity, or shareholder returns, are for illustrative purposes only, are not forecasts, and actual results may differ.
Non-GAAP Financial Measures — Certain financial information provided in this earnings release has not been prepared in accordance with GAAP and is presented on a non-GAAP basis. Investors and analysts should refer to the reconciliations included in this earnings release and should consider the Company’s non-GAAP measures in addition to, not as a substitute for or as superior to, measures prepared in accordance with GAAP. These non-GAAP measures may or may not be comparable to similarly titled measures used by other companies.
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||
| (Unaudited) | ||||||||||||
| (Dollars in thousands) | ||||||||||||
2026 | 2025 | 2025 | ||||||||||
| Assets | ||||||||||||
| Cash and due from banks | $ | 138,613 | $ | 107,511 | $ | 187,981 | ||||||
| Interest-earning balances due from | 313,773 | 268,878 | 341,108 | |||||||||
| Total cash and cash equivalents | 452,386 | 376,389 | 529,089 | |||||||||
| Interest-earning balances due from depository institutions | 4,937 | 13,064 | 3,451 | |||||||||
| Investment securities available-for-sale | 2,589,119 | 2,683,070 | 2,535,066 | |||||||||
| Investment securities held-to-maturity | 2,248,038 | 2,270,391 | 2,359,141 | |||||||||
| Total investment securities | 4,837,157 | 4,953,461 | 4,894,207 | |||||||||
| Investment in FHLB, FRB, and other stock | 55,948 | 55,948 | 18,012 | |||||||||
| Loans and lease finance receivables | 8,643,316 | 8,699,193 | 8,363,632 | |||||||||
| Allowance for credit losses | (80,170 | ) | (77,161 | ) | (78,252 | ) | ||||||
| Net loans and lease finance receivables | 8,563,146 | 8,622,032 | 8,285,380 | |||||||||
| Premises and equipment, net | 26,858 | 26,505 | 26,772 | |||||||||
| Bank owned life insurance (“BOLI”) | 328,457 | 325,299 | 318,301 | |||||||||
| Intangibles | 4,924 | 5,774 | 8,812 | |||||||||
| 765,822 | 765,822 | 765,822 | ||||||||||
| Other assets | 467,945 | 486,760 | 406,745 | |||||||||
| Total assets | $ | 15,507,580 | $ | 15,631,054 | $ | 15,256,591 | ||||||
| Liabilities | ||||||||||||
| Deposits: | ||||||||||||
| Noninterest-bearing | $ | 7,100,507 | $ | 6,800,691 | $ | 7,184,267 | ||||||
| Investment checking | 497,609 | 509,272 | 533,220 | |||||||||
| Savings and money market | 3,802,623 | 4,185,244 | 3,710,612 | |||||||||
| Time deposits | 544,485 | 576,775 | 561,822 | |||||||||
| Total deposits | 11,945,224 | 12,071,982 | 11,989,921 | |||||||||
| Customer repurchase agreements | 494,257 | 490,601 | 276,163 | |||||||||
| 500,000 | 500,000 | 500,000 | ||||||||||
| Other liabilities | 246,818 | 273,247 | 262,088 | |||||||||
| Total liabilities | 13,186,299 | 13,335,830 | 13,028,172 | |||||||||
| Stockholders' Equity | ||||||||||||
| Common Stock | 1,221,938 | 1,222,365 | 1,280,969 | |||||||||
| Retained Earnings | 1,324,318 | 1,300,513 | 1,224,750 | |||||||||
| Accumulated other comprehensive loss, net | (224,975 | ) | (227,654 | ) | (277,300 | ) | ||||||
| Total stockholders' equity | 2,321,281 | 2,295,224 | 2,228,419 | |||||||||
| Total liabilities and stockholders' equity | $ | 15,507,580 | $ | 15,631,054 | $ | 15,256,591 | ||||||
| CONDENSED CONSOLIDATED AVERAGE BALANCE SHEETS | ||||||||||||
| (Unaudited) | ||||||||||||
| (Dollars in thousands) | ||||||||||||
| Three Months Ended | ||||||||||||
2026 | 2025 | 2025 | ||||||||||
| Assets | ||||||||||||
| Cash and due from banks | $ | 145,001 | $ | 144,568 | $ | 154,328 | ||||||
| Interest-earning balances due from | 280,163 | 513,797 | 161,432 | |||||||||
| Total cash and cash equivalents | 425,164 | 658,365 | 315,760 | |||||||||
| Interest-earning balances due from depository institutions | 10,373 | 14,414 | 957 | |||||||||
| Investment securities available-for-sale | 2,660,813 | 2,661,115 | 2,539,211 | |||||||||
| Investment securities held-to-maturity | 2,260,402 | 2,285,617 | 2,369,507 | |||||||||
| Total investment securities | 4,921,215 | 4,946,732 | 4,908,718 | |||||||||
| Investment in FHLB, FRB, and other stock | 55,948 | 33,681 | 18,012 | |||||||||
| Loans and lease finance receivables | 8,624,604 | 8,517,188 | 8,467,465 | |||||||||
| Allowance for credit losses | (77,219 | ) | (79,341 | ) | (80,113 | ) | ||||||
| Net loans and lease finance receivables | 8,547,385 | 8,437,847 | 8,387,352 | |||||||||
| Premises and equipment, net | 26,897 | 26,775 | 27,408 | |||||||||
| BOLI | 326,031 | 325,389 | 316,643 | |||||||||
| Intangibles | 5,341 | 6,176 | 9,518 | |||||||||
| 765,822 | 765,822 | 765,822 | ||||||||||
| Other assets | 480,068 | 433,774 | 419,116 | |||||||||
| Total assets | $ | 15,564,244 | $ | 15,648,975 | $ | 15,169,306 | ||||||
| Liabilities | ||||||||||||
| Deposits: | ||||||||||||
| Noninterest-bearing | $ | 6,894,427 | $ | 7,001,471 | $ | 7,006,357 | ||||||
| Interest-bearing | 5,041,899 | 5,087,709 | 4,866,318 | |||||||||
| Total deposits | 11,936,326 | 12,089,180 | 11,872,675 | |||||||||
| Customer repurchase agreements | 541,881 | 493,886 | 317,322 | |||||||||
| 500,000 | 500,000 | 513,078 | ||||||||||
| Other liabilities | 250,364 | 261,824 | 239,283 | |||||||||
| Total liabilities | 13,228,571 | 13,344,890 | 12,942,358 | |||||||||
| Stockholders' Equity | ||||||||||||
| Common Stock | 1,222,046 | 1,237,231 | 1,291,426 | |||||||||
| Retained Earnings | 1,332,021 | 1,304,100 | 1,232,497 | |||||||||
| Accumulated other comprehensive loss, net | (218,394 | ) | (237,246 | ) | (296,975 | ) | ||||||
| Total stockholders' equity | 2,335,673 | 2,304,085 | 2,226,948 | |||||||||
| Total liabilities and stockholders' equity | $ | 15,564,244 | $ | 15,648,975 | $ | 15,169,306 | ||||||
| CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||||||
| (Unaudited) | ||||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||||
| Three Months Ended | ||||||||||||
2026 | 2025 | 2025 | ||||||||||
| Interest income | ||||||||||||
| Loans and leases, including fees | $ | 113,272 | $ | 117,415 | $ | 109,071 | ||||||
| Investment securities: | ||||||||||||
| Investment securities available-for-sale | 19,400 | 20,062 | 18,734 | |||||||||
| Investment securities held-to-maturity | 12,466 | 12,649 | 13,021 | |||||||||
| Total investment income | 31,866 | 32,711 | 31,755 | |||||||||
| Dividends from FHLB, FRB, and other stock | 1,311 | 539 | 379 | |||||||||
| Interest-earning deposits with other institutions | 2,661 | 5,314 | 1,797 | |||||||||
| Total interest income | 149,110 | 155,979 | 143,002 | |||||||||
| Interest expense | ||||||||||||
| Deposits | 23,052 | 25,047 | 25,322 | |||||||||
| Borrowings and customer repurchase agreements | 7,972 | 8,007 | 6,800 | |||||||||
| Other | 246 | 267 | 436 | |||||||||
| Total interest expense | 31,270 | 33,321 | 32,558 | |||||||||
| Net interest income before provision for (recapture of) credit losses | 117,840 | 122,658 | 110,444 | |||||||||
| Provision for (recapture of) credit losses | 3,000 | (2,500 | ) | (2,000 | ) | |||||||
| Net interest income after provision for (recapture of) credit losses | 114,840 | 125,158 | 112,444 | |||||||||
| Noninterest income | ||||||||||||
| Service charges on deposit accounts | 4,817 | 4,734 | 4,908 | |||||||||
| Trust and investment services | 3,724 | 4,031 | 3,411 | |||||||||
| Loss on sale of | - | (2,785 | ) | - | ||||||||
| Gain on other real estate owned (“OREO”), net | - | 113 | 2,183 | |||||||||
| Other | 5,738 | 5,100 | 5,727 | |||||||||
| Total noninterest income | 14,279 | 11,193 | 16,229 | |||||||||
| Noninterest expense | ||||||||||||
| Salaries and employee benefits | 37,461 | 37,105 | 36,477 | |||||||||
| Occupancy and equipment | 6,075 | 5,892 | 5,998 | |||||||||
| Professional services | 2,518 | 2,626 | 2,081 | |||||||||
| Computer software expense | 4,303 | 4,167 | 4,221 | |||||||||
| Marketing and promotion | 2,061 | 1,339 | 1,988 | |||||||||
| Amortization of intangible assets | 850 | 881 | 1,155 | |||||||||
| Provision for unfunded loan commitments | 500 | 1,000 | 500 | |||||||||
| Acquisition related expenses | 1,129 | 1,556 | - | |||||||||
| Other | 5,671 | 7,422 | 6,724 | |||||||||
| Total noninterest expense | 60,568 | 61,988 | 59,144 | |||||||||
| Earnings before income taxes | 68,551 | 74,363 | 69,529 | |||||||||
| Income tax expense | 17,549 | 19,319 | 18,425 | |||||||||
| Net earnings | $ | 51,002 | $ | 55,044 | $ | 51,104 | ||||||
| Basic earnings per common share | $ | 0.38 | $ | 0.40 | $ | 0.37 | ||||||
| Diluted earnings per common share | $ | 0.38 | $ | 0.40 | $ | 0.36 | ||||||
| Cash dividends declared per common share | $ | 0.20 | $ | 0.20 | $ | 0.20 | ||||||
| SELECTED FINANCIAL HIGHLIGHTS | |||||||||||
| (Unaudited) | |||||||||||
| (Dollars in thousands, except per share amounts) | |||||||||||
| Three Months Ended | |||||||||||
2026 | 2025 | 2025 | |||||||||
| Interest income - tax equivalent (TE) | $ | 149,138 | $ | 156,007 | $ | 143,525 | |||||
| Interest expense | 31,270 | 33,321 | 32,558 | ||||||||
| Net interest income - (TE) | $ | 117,868 | $ | 122,686 | $ | 110,967 | |||||
| Return on average assets, annualized | 1.33 | % | 1.40 | % | 1.37 | % | |||||
| Return on average equity, annualized | 8.86 | % | 9.48 | % | 9.31 | % | |||||
| Efficiency ratio | 45.84 | % | 46.31 | % | 46.69 | % | |||||
| Adjusted efficiency ratio [1] | 44.61 | % | 44.40 | % | 46.30 | % | |||||
| Noninterest expense to average assets, annualized | 1.58 | % | 1.57 | % | 1.58 | % | |||||
| Yield on average loans | 5.32 | % | 5.47 | % | 5.22 | % | |||||
| Yield on average earning assets (TE) | 4.35 | % | 4.43 | % | 4.28 | % | |||||
| Cost of deposits | 0.78 | % | 0.82 | % | 0.86 | % | |||||
| Cost of deposits and customer repurchase agreements | 0.82 | % | 0.86 | % | 0.87 | % | |||||
| Cost of funds | 0.97 | % | 1.01 | % | 1.04 | % | |||||
| Net interest margin (TE) | 3.44 | % | 3.49 | % | 3.31 | % | |||||
| TCE ratio [1] | |||||||||||
| 10.52 | % | 10.25 | % | 10.04 | % | ||||||
| 10.35 | % | 10.09 | % | 9.92 | % | ||||||
| Weighted average shares outstanding | |||||||||||
| Basic | 134,760,313 | 135,525,188 | 138,973,996 | ||||||||
| Diluted | 134,916,024 | 135,920,667 | 139,294,401 | ||||||||
| Dividends declared | $ | 27,197 | $ | 27,180 | $ | 27,853 | |||||
| Dividend payout ratio [2] | 53.32 | % | 49.38 | % | 54.50 | % | |||||
| Number of shares outstanding - (end of period) | 135,791,180 | 135,551,799 | 139,089,612 | ||||||||
| Book value per share | $ | 17.09 | $ | 16.93 | $ | 16.02 | |||||
| Tangible book value per share [1] | $ | 11.42 | $ | 11.24 | $ | 10.45 | |||||
| [1] Non-GAAP financial measures. Reconciliations of the GAAP to non-GAAP measures are set forth at the end of this press release. | |||||||||||
| [2] Dividends declared on common stock divided by net earnings. | |||||||||||
| SELECTED FINANCIAL HIGHLIGHTS | ||||||||||||
| (Unaudited) | ||||||||||||
| (Dollars in thousands) | ||||||||||||
| Three Months Ended | ||||||||||||
2026 | 2025 | 2025 | ||||||||||
| Nonperforming assets: | ||||||||||||
| Nonaccrual loans | $ | 6,144 | $ | 4,685 | $ | 25,636 | ||||||
| Other real estate owned (“OREO”), net | 206 | 163 | 495 | |||||||||
| Total nonperforming assets | $ | 6,350 | $ | 4,848 | $ | 26,131 | ||||||
| Loan modifications to borrowers experiencing financial difficulty | $ | 22,255 | $ | 16,902 | $ | 11,949 | ||||||
| Percentage of nonperforming assets to total loans outstanding and OREO | 0.07 | % | 0.06 | % | 0.31 | % | ||||||
| Percentage of nonperforming assets to total assets | 0.04 | % | 0.03 | % | 0.17 | % | ||||||
| Allowance for credit losses to nonperforming assets | 1262.52 | % | 1591.60 | % | 299.46 | % | ||||||
| Three Months Ended | ||||||||||||
2026 | 2025 | 2025 | ||||||||||
| Allowance for credit losses: | ||||||||||||
| Balance at beginning of period | $ | 77,161 | $ | 79,336 | $ | 80,122 | ||||||
| Charge-offs | (123 | ) | (106 | ) | (40 | ) | ||||||
| Recoveries | 132 | 431 | 170 | |||||||||
| Net recoveries | 9 | 325 | 130 | |||||||||
| Provision for (recapture of) credit losses | 3,000 | (2,500 | ) | (2,000 | ) | |||||||
| Balance at end of period | $ | 80,170 | $ | 77,161 | $ | 78,252 | ||||||
| Net recoveries to average loans | 0.000 | % | 0.004 | % | 0.002 | % | ||||||
| SELECTED FINANCIAL HIGHLIGHTS | |||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||
| Allowance for Credit Losses by Loan Type | |||||||||||||||||||||||||||
| Allowance For Credit Losses | Allowance as a % of Total Loans by Respective Loan Type | Allowance For Credit Losses | Allowance as a % of Total Loans by Respective Loan Type | Allowance For Credit Losses | Allowance as a % of Total Loans by Respective Loan Type | ||||||||||||||||||||||
| Commercial real estate | $ | 59,302 | 0.89 | % | $ | 61,661 | 0.94 | % | $ | 65,302 | 1.01 | % | |||||||||||||||
| Construction | 816 | 1.38 | % | 593 | 1.57 | % | 238 | 1.52 | % | ||||||||||||||||||
| SBA | 2,821 | 0.97 | % | 2,720 | 0.96 | % | 2,608 | 0.96 | % | ||||||||||||||||||
| Commercial and industrial | 12,565 | 1.32 | % | 8,438 | 0.87 | % | 6,118 | 0.65 | % | ||||||||||||||||||
| Dairy & livestock and agribusiness | 3,348 | 1.06 | % | 2,486 | 0.58 | % | 2,824 | 1.12 | % | ||||||||||||||||||
| Municipal lease finance receivables | 264 | 0.46 | % | 251 | 0.42 | % | 210 | 0.32 | % | ||||||||||||||||||
| SFR mortgage | 457 | 0.16 | % | 442 | 0.16 | % | 427 | 0.16 | % | ||||||||||||||||||
| Consumer and other loans | 597 | 1.02 | % | 570 | 0.98 | % | 525 | 0.94 | % | ||||||||||||||||||
| Total | $ | 80,170 | 0.93 | % | $ | 77,161 | 0.89 | % | $ | 78,252 | 0.94 | % | |||||||||||||||
| SELECTED FINANCIAL HIGHLIGHTS | ||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||||||||||||||||
| Quarterly Common Stock Price | ||||||||||||||||||||||||
| 2026 | 2025 | 2024 | ||||||||||||||||||||||
| Quarter End | High | Low | High | Low | High | Low | ||||||||||||||||||
| $ | 21.48 | $ | 18.26 | $ | 21.71 | $ | 18.22 | $ | 20.45 | $ | 15.95 | |||||||||||||
| $ | - | $ | - | $ | 20.15 | $ | 16.01 | $ | 17.91 | $ | 15.71 | |||||||||||||
| $ | - | $ | - | $ | 21.34 | $ | 18.12 | $ | 20.29 | $ | 16.08 | |||||||||||||
| $ | - | $ | - | $ | 20.70 | $ | 17.95 | $ | 24.58 | $ | 17.20 | |||||||||||||
| Quarterly Consolidated Statements of Earnings | ||||||||||||||||||||||||
| Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||||
| 2026 | 2025 | 2025 | 2025 | 2025 | ||||||||||||||||||||
| Interest income | ||||||||||||||||||||||||
| Loans and leases, including fees | $ | 113,272 | $ | 117,415 | $ | 110,825 | $ | 108,845 | $ | 109,071 | ||||||||||||||
| Investment securities and other | 35,838 | 38,564 | 39,287 | 35,364 | 33,931 | |||||||||||||||||||
| Total interest income | 149,110 | 155,979 | 150,112 | 144,209 | 143,002 | |||||||||||||||||||
| Interest expense | ||||||||||||||||||||||||
| Deposits | 23,052 | 25,047 | 26,096 | 24,829 | 25,322 | |||||||||||||||||||
| Borrowings and customer repurchase agreements | 7,972 | 8,007 | 8,109 | 7,401 | 6,800 | |||||||||||||||||||
| Other | 246 | 267 | 330 | 371 | 436 | |||||||||||||||||||
| Total interest expense | 31,270 | 33,321 | 34,535 | 32,601 | 32,558 | |||||||||||||||||||
| Net interest income before provision for (recapture of) credit losses | 117,840 | 122,658 | 115,577 | 111,608 | 110,444 | |||||||||||||||||||
| Provision for (recapture of) credit losses | 3,000 | (2,500 | ) | 1,000 | - | (2,000 | ) | |||||||||||||||||
| Net interest income after provision for (recapture of) credit losses | 114,840 | 125,158 | 114,577 | 111,608 | 112,444 | |||||||||||||||||||
| Noninterest income | 14,279 | 11,193 | 13,006 | 14,744 | 16,229 | |||||||||||||||||||
| Noninterest expense | 60,568 | 61,988 | 58,576 | 57,557 | 59,144 | |||||||||||||||||||
| Earnings before income taxes | 68,551 | 74,363 | 69,007 | 68,795 | 69,529 | |||||||||||||||||||
| Income taxes | 17,549 | 19,319 | 16,421 | 18,231 | 18,425 | |||||||||||||||||||
| Net earnings | $ | 51,002 | $ | 55,044 | $ | 52,586 | $ | 50,564 | $ | 51,104 | ||||||||||||||
| Effective tax rate | 25.60 | % | 25.98 | % | 23.80 | % | 26.50 | % | 26.50 | % | ||||||||||||||
| Basic earnings per common share | $ | 0.38 | $ | 0.40 | $ | 0.38 | $ | 0.37 | $ | 0.37 | ||||||||||||||
| Diluted earnings per common share | $ | 0.38 | $ | 0.40 | $ | 0.38 | $ | 0.37 | $ | 0.36 | ||||||||||||||
| Cash dividends declared per common share | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | ||||||||||||||
| Cash dividends declared | $ | 27,197 | $ | 27,180 | $ | 27,548 | $ | 27,703 | $ | 27,853 | ||||||||||||||
| SELECTED FINANCIAL HIGHLIGHTS | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Loan Portfolio by Type | ||||||||||||||||||||
2026 | 2025 | 2025 | 2025 | 2025 | ||||||||||||||||
| Commercial real estate | $ | 6,631,238 | $ | 6,574,395 | $ | 6,535,319 | $ | 6,517,415 | $ | 6,490,604 | ||||||||||
| Construction | 59,329 | 37,812 | 29,976 | 17,658 | 15,706 | |||||||||||||||
| SBA | 291,693 | 282,371 | 266,228 | 271,735 | 271,844 | |||||||||||||||
| SBA - PPP | 9 | 30 | 51 | 85 | 179 | |||||||||||||||
| Commercial and industrial | 952,260 | 973,631 | 939,174 | 912,427 | 942,301 | |||||||||||||||
| Dairy & livestock and agribusiness | 314,838 | 431,577 | 292,963 | 233,772 | 252,532 | |||||||||||||||
| Municipal lease finance receivables | 57,453 | 59,542 | 61,383 | 63,652 | 65,203 | |||||||||||||||
| SFR mortgage | 278,214 | 281,766 | 286,111 | 288,435 | 269,493 | |||||||||||||||
| Consumer and other loans | 58,282 | 58,069 | 59,701 | 53,322 | 55,770 | |||||||||||||||
| Gross loans, at amortized cost | 8,643,316 | 8,699,193 | 8,470,906 | 8,358,501 | 8,363,632 | |||||||||||||||
| Allowance for credit losses | (80,170 | ) | (77,161 | ) | (79,336 | ) | (78,003 | ) | (78,252 | ) | ||||||||||
| Net loans | $ | 8,563,146 | $ | 8,622,032 | $ | 8,391,570 | $ | 8,280,498 | $ | 8,285,380 | ||||||||||
| Deposit Composition by Type and Customer Repurchase Agreements | ||||||||||||||||||||
2026 | 2025 | 2025 | 2025 | 2025 | ||||||||||||||||
| Noninterest-bearing | $ | 7,100,507 | $ | 6,800,691 | $ | 7,244,968 | $ | 7,247,128 | $ | 7,184,267 | ||||||||||
| Investment checking | 497,609 | 509,272 | 487,738 | 483,793 | 533,220 | |||||||||||||||
| Savings and money market | 3,802,623 | 4,185,244 | 3,809,768 | 3,669,912 | 3,710,612 | |||||||||||||||
| Time deposits | 544,485 | 576,775 | 581,765 | 583,990 | 561,822 | |||||||||||||||
| Total deposits | 11,945,224 | 12,071,982 | 12,124,239 | 11,984,823 | 11,989,921 | |||||||||||||||
| Customer repurchase agreements | 494,257 | 490,601 | 451,258 | 404,154 | 276,163 | |||||||||||||||
| Total deposits and customer repurchase agreements | $ | 12,439,481 | $ | 12,562,583 | $ | 12,575,497 | $ | 12,388,977 | $ | 12,266,084 | ||||||||||
| SELECTED FINANCIAL HIGHLIGHTS | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Nonperforming Assets and Delinquency Trends | ||||||||||||||||||||
2026 | 2025 | 2025 | 2025 | 2025 | ||||||||||||||||
| Nonperforming loans | ||||||||||||||||||||
| Commercial real estate | $ | 2,094 | $ | 4,186 | $ | 23,707 | $ | 24,379 | $ | 24,379 | ||||||||||
| SBA | 477 | 21 | 3,952 | 1,265 | 1,024 | |||||||||||||||
| Commercial and industrial | 3,573 | 478 | 145 | 265 | 173 | |||||||||||||||
| Dairy & livestock and agribusiness | - | - | - | 60 | 60 | |||||||||||||||
| Total | $ | 6,144 | $ | 4,685 | $ | 27,804 | $ | 25,969 | $ | 25,636 | ||||||||||
| % of Total loans | 0.07 | % | 0.05 | % | 0.33 | % | 0.31 | % | 0.31 | % | ||||||||||
| Past due 30-89 days (accruing) | ||||||||||||||||||||
| Commercial real estate | $ | 4,715 | $ | 2,887 | $ | 43 | $ | - | $ | - | ||||||||||
| SBA | 1,553 | 30 | 42 | 3,419 | 718 | |||||||||||||||
| Commercial and industrial | 88 | 261 | - | - | - | |||||||||||||||
| SFR mortgage | 249 | - | - | - | - | |||||||||||||||
| Total | $ | 6,605 | $ | 3,178 | $ | 85 | $ | 3,419 | $ | 718 | ||||||||||
| % of Total loans | 0.08 | % | 0.04 | % | 0.00 | % | 0.04 | % | 0.01 | % | ||||||||||
| OREO | ||||||||||||||||||||
| Commercial real estate | $ | 206 | $ | 163 | $ | 661 | $ | 661 | $ | 495 | ||||||||||
| Total | $ | 206 | $ | 163 | $ | 661 | $ | 661 | $ | 495 | ||||||||||
| Total nonperforming, past due, and OREO | $ | 12,955 | $ | 8,026 | $ | 28,550 | $ | 30,049 | $ | 26,849 | ||||||||||
| % of Total loans | 0.15 | % | 0.09 | % | 0.34 | % | 0.36 | % | 0.32 | % | ||||||||||
| SELECTED FINANCIAL HIGHLIGHTS | ||||||||||||
| (Unaudited) | ||||||||||||
| Regulatory Capital Ratios | ||||||||||||
| Minimum Required | ||||||||||||
| Capital Ratios | Conservation Buffer | 2026 | 2025 | 2025 | ||||||||
| Tier 1 leverage capital ratio | 4.0 | % | 11.9 | % | 11.6 | % | 11.8 | % | ||||
| Common equity Tier 1 capital ratio | 7.0 | % | 16.3 | % | 15.9 | % | 16.5 | % | ||||
| Tier 1 risk-based capital ratio | 8.5 | % | 16.3 | % | 15.9 | % | 16.5 | % | ||||
| Total risk-based capital ratio | 10.5 | % | 17.1 | % | 16.7 | % | 17.3 | % | ||||
GAAP TO NON-GAAP RECONCILIATIONS
The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company's operational performance and to enhance investors’ overall understanding of such financial performance. However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these adjusted measures, this presentation may not be comparable to other similarly titled adjusted measures reported by other companies.
Pretax Pre-Provision Income (Non-GAAP)
Pretax pre-provision income is a Non-GAAP financial measure that represents total revenue less noninterest expense and is calculated before provision for credit losses and income tax expense. Management believes this measure provides useful information for comparing the results of operations between periods.
| Three Months Ended | ||||||||||||
2026 | 2025 | 2025 | ||||||||||
| (Dollars in thousands) | ||||||||||||
| Net Income | $ | 51,002 | $ | 55,044 | $ | 51,104 | ||||||
| Add: Provision for (recapture of) credit losses | 3,000 | (2,500 | ) | (2,000 | ) | |||||||
| Add: Income tax expense | 17,549 | 19,319 | 18,425 | |||||||||
| Pretax pre-provision income | $ | 71,551 | $ | 71,863 | $ | 67,529 | ||||||
Tangible Book Value and Tangible Common Equity Ratio (Non-GAAP)
The tangible book value per share and tangible common equity ratios are a Non-GAAP financial measures derived from GAAP-based amounts. The following is a reconciliation of tangible book value and tangible common equity to the Company stockholders' equity computed in accordance with GAAP, as well as a calculation of tangible book value per share and tangible common equity ratio.
2026 | 2025 | 2025 | ||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||||
| Stockholders' equity | $ | 2,321,281 | $ | 2,295,224 | $ | 2,228,419 | ||||||
| Less: | (765,822 | ) | (765,822 | ) | (765,822 | ) | ||||||
| Less: Intangible assets | (4,924 | ) | (5,774 | ) | (8,812 | ) | ||||||
| Tangible book value | $ | 1,550,535 | $ | 1,523,628 | $ | 1,453,785 | ||||||
| Total assets | 15,507,580 | 15,631,054 | 15,256,591 | |||||||||
| Less: | (765,822 | ) | (765,822 | ) | (765,822 | ) | ||||||
| Less: Intangible assets | (4,924 | ) | (5,774 | ) | (8,812 | ) | ||||||
| Tangible assets | $ | 14,736,834 | $ | 14,859,458 | $ | 14,481,957 | ||||||
| Common shares issued and outstanding | 135,791,180 | 135,551,799 | 139,089,612 | |||||||||
| Book value per share | $ | 17.09 | $ | 16.93 | $ | 16.02 | ||||||
| Tangible book value per share | $ | 11.42 | $ | 11.24 | $ | 10.45 | ||||||
| Tangible common equity ratio | 10.52 | % | 10.25 | % | 10.04 | % | ||||||
| Stockholders' equity | $ | 2,295,693 | $ | 2,270,968 | $ | 2,212,100 | ||||||
| Less: | (765,822 | ) | (765,822 | ) | (765,822 | ) | ||||||
| Less: Intangible assets | (4,924 | ) | (5,774 | ) | (8,812 | ) | ||||||
| Tangible book value | $ | 1,524,947 | $ | 1,499,372 | $ | 1,437,466 | ||||||
| Total assets | 15,511,016 | 15,634,835 | 15,263,140 | |||||||||
| Less: | (765,822 | ) | (765,822 | ) | (765,822 | ) | ||||||
| Less: Intangible assets | (4,924 | ) | (5,774 | ) | (8,812 | ) | ||||||
| Tangible assets | $ | 14,740,270 | $ | 14,863,239 | $ | 14,488,506 | ||||||
| Common shares issued and outstanding | 135,791,180 | 135,551,799 | 139,089,612 | |||||||||
| Book value per share | $ | 16.91 | $ | 16.75 | $ | 15.90 | ||||||
| Tangible book value per share | $ | 11.23 | $ | 11.06 | $ | 10.33 | ||||||
| Tangible common equity ratio | 10.35 | % | 10.09 | % | 9.92 | % | ||||||
Return on Average Tangible Common Equity (Non-GAAP)
The return on average tangible common equity is a non-GAAP disclosure. The following is a reconciliation of net income, adjusted for tax-effected amortization of intangibles, to net income computed in accordance with GAAP; a reconciliation of average tangible common equity to the Company's average stockholders' equity computed in accordance with GAAP; as well as a calculation of return on average tangible common equity.
| Three Months Ended | ||||||||||||
2026 | 2025 | 2025 | ||||||||||
| (Dollars in thousands) | ||||||||||||
| Net Income | $ | 51,002 | $ | 55,044 | $ | 51,104 | ||||||
| Add: Amortization of intangible assets | 850 | 881 | 1,155 | |||||||||
| Less: Tax effect of amortization of intangible assets (1) | (247 | ) | (260 | ) | (341 | ) | ||||||
| Tangible net income | $ | 51,605 | $ | 55,665 | $ | 51,918 | ||||||
| Average stockholders' equity | $ | 2,335,673 | $ | 2,304,085 | $ | 2,226,948 | ||||||
| Less: Average goodwill | (765,822 | ) | (765,822 | ) | (765,822 | ) | ||||||
| Less: Average intangible assets | (5,341 | ) | (6,176 | ) | (9,518 | ) | ||||||
| Average tangible common equity | $ | 1,564,510 | $ | 1,532,087 | $ | 1,451,608 | ||||||
| Return on average equity, annualized (2) | 8.86 | % | 9.48 | % | 9.31 | % | ||||||
| Return on average tangible common equity, annualized (2) | 13.38 | % | 14.41 | % | 14.51 | % | ||||||
| (1) Tax effected at respective statutory rates. | ||||||||||||
| (2) Annualized where applicable. | ||||||||||||
Adjusted Efficiency Ratio (Non-GAAP)
Adjusted efficiency ratio is a non-GAAP financial measure derived from GAAP-based amounts. This figure represents the ratio of noninterest expense, less acquisition related expense and provision for unfunded loan commitments, where applicable, to the sum of net interest income before provision for credit losses and total noninterest income. Management believes that the exclusion of such items from this financial measure provides useful information to gain an understanding of the operating results of our core business.
| Three Months Ended | ||||||||||||
2026 | 2025 | 2025 | ||||||||||
| (Dollars in thousands) | ||||||||||||
| Total noninterest expense | $ | 60,568 | $ | 61,988 | $ | 59,144 | ||||||
| Less: Provision for unfunded loan commitments | 500 | 1,000 | 500 | |||||||||
| Less: Acquisition related expenses | 1,129 | 1,556 | - | |||||||||
| Adjusted noninterest expense | $ | 58,939 | $ | 59,432 | $ | 58,644 | ||||||
| Net interest income before provision for credit losses | $ | 117,840 | $ | 122,658 | $ | 110,444 | ||||||
| Add: total noninterest income | 14,279 | 11,193 | 16,229 | |||||||||
| Total revenue | $ | 132,119 | $ | 133,851 | $ | 126,673 | ||||||
| Efficiency ratio | 45.84 | % | 46.31 | % | 46.69 | % | ||||||
| Adjusted efficiency ratio, excluding provision for unfunded loan commitments and acquisition related expenses | 44.61 | % | 44.40 | % | 46.30 | % | ||||||
