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Executive summary

• Net income for Q1 2026 was $246 million, up $12 million sequentially and 38% year-over-year, with EPS at $3.78, up $0.25 from Q4 and 48% year-over-year, driven by higher net interest income, margin expansion, and lower operating expenses.

• Strong capital return to shareholders: $204 million via buybacks and dividends in Q1 2026.

• Credit trends remained favorable with lower non-performing loans (NPLs) and improved NPL ratios, though net charge-offs rose due to a single commercial relationship.

• Continued investment in business capabilities, technology, and digital initiatives, including new digital marketplace and corporate credit cards.

Financial highlights

• Net interest income rose to $670.2 million, up $13 million sequentially, with net interest margin expanding to 3.66% GAAP and 4.14% taxable equivalent.

• Non-interest income was $166 million, up 9% year-over-year, led by debit/credit card and asset management fees.

• Operating expenses decreased by $6 million sequentially to $467 million, mainly due to lower personnel costs and operational efficiencies.

• Tangible book value per share increased to $84.98, up $2.33 from Q4.

• Return on tangible common equity (ROTCE) was 15.5%, up from 14.4% in Q4 and 11.4% a year ago.

Outlook and guidance

• 2026 net interest income growth expected at the upper end of 5%-7% guidance range.

• Loan growth for 2026 expected at the low end of the original 3%-4% range due to slower consumer and auto demand.

• Quarterly non-interest income expected to remain in the $160-$165 million range.

• Full-year expense growth now expected at 2%-3%, down from original 3% guidance.

• Effective tax rate for 2026 expected at the low end of 15%-17% range.