Key Financial Highlights

• Net income for Q1 2026: \$118.2 million (flat sequentially, up year-over-year).
• Diluted earnings per share: \$0.60 (unchanged from Q4 2025, up from \$0.58 in Q1 2025).
• Adjusted net income (non-GAAP): \$118.2 million.
• Pre-tax, pre-provision net income (PPNR, non-GAAP): \$152.7 million.
• Return on average assets (ROA): 2.08%.
• Return on average equity (ROE): 11.09%.
• Return on average tangible common equity (ROTCE, non-GAAP): 16.56%.
• Efficiency ratio: 41.6% (reflects strong cost discipline).
• Book value per share: \$22.15 (record high), up from \$21.88 in Q4 2025.
• Tangible book value per share (non-GAAP): \$14.87 (record high), up from \$14.60 in Q4 2025.
• Common equity tier 1 capital ratio: 16.7% (well above regulatory minimums).

Operational and Strategic Developments

• Stable and resilient earnings performance: Supported by disciplined balance sheet management and stable credit quality.
• Net interest income after credit loss expense:
  Increased by \$6.2 million quarter-over-quarter and \$8.7 million year-over-year, reflecting effective asset-liability management and strong credit performance.
• Interest expense: Declined to \$87.1 million, benefiting from a lower interest rate environment.
• Non-interest expense: Well-controlled at \$114.0 million, essentially unchanged from the prior quarter, demonstrating strong cost controls.
• Shareholder returns:
  • Repurchased 507,622 shares in Q1 2026, representing a buyback yield of 0.25%.
  • Declared and paid a dividend of \$0.21 per share (consistent with Q4 2025).
• Allowance for credit losses:
  \$297.6 million (1.90% of total loans), unchanged from Q4 2025, equal to 163.43% of non-performing loans.
• Non-performing assets:
  Remained stable; coverage ratios indicate strong reserve position.
• Capital and liquidity:
  Shareholders’ equity rose by \$52.7 million over the quarter, driven by \$76.9 million increase in retained earnings, partially offset by stock repurchases and a \$13.5 million decrease in accumulated other comprehensive income.
• Record book values:
  Both book value per share and tangible book value per share are at record levels.

Shareholder-Relevant and Potentially Price-Sensitive Information

• Stable earnings and record capital metrics:
  The ability to maintain and grow earnings and capital through a volatile environment is likely to be seen positively by the market.
• Continued share buybacks and consistent dividends:
  Ongoing capital returns signal management’s confidence in the Company’s financial strength and future prospects.
• Efficiency and cost discipline:
  A sub-42% efficiency ratio is a key positive, highlighting strong operating leverage.
• No negative surprises in credit quality or capital:
  No material deterioration in asset quality or loan losses; coverage ratios remain strong.
• Outlook and guidance:
  Management’s commentary points to continued focus on cost controls, disciplined growth, and resilient operating performance.
• Forward-Looking Statements:
  The Company emphasized that its outlook is subject to risks including economic conditions, credit quality, interest rates, regulatory changes, and post-acquisition integration (following its recent MCBI acquisition).

Detailed Financials

Conference Call and Guidance

Management will host a conference call at 1:00 p.m. CT (2:00 p.m. ET) on Thursday, April 16, 2026 to discuss the results. Investors are encouraged to pre-register for the webcast or live call via provided links on the company’s Investor Relations website. The call will include Q&A and further guidance.

Important Shareholder Takeaways

• Record capital levels and book value per share: Indicates robust capital generation and prudent capital management.
• Stable profitability and earnings quality: No negative surprises; continued high-quality, recurring earnings.
• Ongoing share buybacks and dividends: Underscore management’s shareholder-friendly philosophy and signal confidence in future performance.
• Disciplined expense and risk management: Efficiency ratio and asset quality remain best-in-class.
• Positive outlook, but with standard risks: Management cautions on economic, credit, and regulatory risks; investors should monitor guidance and macroeconomic developments.