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Executive summary

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

• Core deposits represented 89% of total deposits, supporting a strong funding base.

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

• Repurchased 250,000 shares at an average price of $64.56 per share during Q1 2026.

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

Financial highlights

• Net interest margin (tax equivalent) was 4.11%, up from 4.03% in Q4 2025 and 3.92% in Q1 2025.

• Net interest income was $150.2 million in Q1 2026, up from $141.1 million in Q1 2025.

• Efficiency ratio improved to 60.60% from 62.11% in Q4 2025 and 63.21% in Q1 2025; adjusted efficiency ratio was 59.45%.

• Allowance for credit losses on loans was $160.4 million, or 1.37% of total loans.

• Non-performing assets remained low at 0.32% of total assets.

Outlook and guidance

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

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

• Management emphasizes scalable growth, resilience, and flexibility, focusing on high-quality asset origination and client acquisition.

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

• Forward-looking statements caution about risks from economic conditions, interest rates, inflation, geopolitical events, and regulatory changes.