Loans 90 days or more past due and still accruing interest
—
—
—
—
—
Subtotal
37,775
33,074
22,598
10,453
9,026
Less: Government guaranteed loans
10,202
9,947
2,243
2,249
1,940
Total non-performing loans
27,573
23,127
20,355
8,204
7,086
Other real estate and repossessed assets
767
896
589
426
413
Total non-performing assets
$
28,340
$
24,023
$
20,944
$
8,630
$
7,499
As a percent of Portfolio Loans
Non-performing loans
0.64
%
0.54
%
0.48
%
0.20
%
0.17
%
Allowance for credit losses
1.48
1.48
1.49
1.47
1.47
Non-performing assets to total assets
0.51
0.44
0.38
0.16
0.14
Allowance for credit losses as a percent of non-performing loans
231.09
274.33
306.85
745.45
847.23
Allowance for credit losses
Three months ended March 31,
2026
2025
Loans
Securities HTM
Unfunded Commitments(1)
Loans
Securities HTM
Unfunded Commitments
(Dollars in thousands)
Balance at beginning of period
$
63,445
$
92
$
5,440
$
59,379
$
132
$
5,131
Additions (deductions)
Provision for credit losses
540
—
(178)
724
(3)
—
Recoveries credited to allowance
499
—
—
550
—
—
Assets charged against the allowance
(765)
—
—
(618)
—
—
Additions included in non-interest expense
—
—
—
—
—
196
Balance at end of period
$
63,719
$
92
$
5,262
$
60,035
$
129
$
5,327
Net loans charged against the allowance to average Portfolio Loans
0.03
%
0.01
%
(1)
Beginning in the fourth quarter of 2025, we classified the provision for unfunded lending commitments in the provision for credit losses in the Consolidated Statements of Operations.
1
Capitalization
March 31, 2026
December 31, 2025
(In thousands)
Subordinated debt
$
—
$
—
Subordinated debentures
39,881
39,864
Amount not qualifying as regulatory capital
(1,224)
(1,224)
Amount qualifying as regulatory capital
38,657
38,640
Shareholders’ equity
Common stock
307,679
307,845
Retained earnings
263,898
252,794
Accumulated other comprehensive loss
(61,024)
(57,688)
Total shareholders’ equity
510,553
502,951
Total capitalization
$
549,210
$
541,591
Non-Interest Income
Three months ended
March 31, 2026
December 31, 2025
March 31, 2025
(In thousands)
Interchange income
$
3,234
$
3,186
$
3,127
Service charges on deposit accounts
2,935
3,096
2,814
Net gains (losses) on assets
Mortgage loans
1,308
1,372
2,303
Equity securities at fair value
—
—
—
Securities
(26)
(15)
(330)
Mortgage loan servicing, net
1,646
899
(636)
Investment and insurance commissions
809
1,006
754
Bank owned life insurance
322
306
297
Other
1,820
2,108
2,095
Total non-interest income
$
12,048
$
11,958
$
10,424
Capitalized Mortgage Loan Servicing Rights
Three months ended March 31,
2026
2025
(In thousands)
Balance at beginning of period
$
31,493
$
46,796
Originated servicing rights capitalized
730
855
Change in fair value
10
(2,424)
Sale of originated servicing rights (1)
—
(12,962)
Loss on sale of originated servicing rights (1)
—
(94)
Balance at end of period
$
32,233
$
32,171
(1) On January 31, 2025 we sold $931.6 million of mortgage loan servicing rights (26.3% of total servicing portfolio) and transferred the servicing on March 3, 2025. This sale represented approximately $13.1 million (41.5%) of the total capitalized mortgage loan servicing right asset.
2
Mortgage Loan Activity
Three months ended
March 31, 2026
December 31, 2025
March 31, 2025
(Dollars in thousands)
Mortgage loans originated
$
130,574
$
134,258
$
107,779
Mortgage loans sold
84,065
86,150
82,618
Net gains on mortgage loans
1,308
1,372
2,303
Net gains as a percent of mortgage loans sold ("Loan Sales Margin")
1.56
%
1.59
%
2.79
%
Fair value adjustments included in the Loan Sales Margin
0.09
%
0.05
%
0.88
%
Non-Interest Expense
Three months ended
March 31, 2026
December 31, 2025
March 31, 2025
(In thousands)
Compensation
$
14,123
$
13,884
$
13,197
Performance-based compensation
3,648
4,820
3,441
Payroll taxes and employee benefits
4,058
3,859
3,745
Compensation and employee benefits
21,829
22,563
20,383
Data processing
3,952
3,428
3,729
Occupancy, net
2,413
2,171
2,223
Litigation expense
1,500
—
—
Advertising
1,210
991
861
Interchange expense
1,191
1,165
1,119
Furniture, fixtures and equipment
894
897
885
FDIC deposit insurance
799
589
711
Loan and collection
752
861
786
Communications
593
471
591
Legal and professional
591
787
479
Taxes, licenses and fees
360
315
326
Merger related expense
300
—
—
Director fees
266
255
232
Amortization of intangible assets
115
122
122
Net (gains) losses on other real estate and repossessed assets
15
31
(66)
Recovery for loss reimbursement on sold loans
(13)
(13)
(11)
Other
1,544
1,445
1,892
Total non-interest expense
$
38,311
$
36,078
$
34,262
3
Average Balances and Tax Equivalent Rates
Three Months Ended March 31,
2026
2025
Average Balance
Interest
Rate (2)
Average Balance
Interest
Rate (2)
(Dollars in thousands)
Assets
Taxable loans
$
4,306,954
$
59,161
5.54
%
$
4,053,593
$
57,685
5.74
%
Tax-exempt loans (1)
8,417
111
5.37
7,348
105
5.78
Taxable securities
534,965
3,354
2.51
619,764
4,036
2.60
Tax-exempt securities (1)
261,286
2,944
4.51
263,912
3,200
4.85
Interest bearing cash
79,636
749
3.81
117,706
1,291
4.45
Other investments
18,102
295
6.52
16,273
279
6.85
Interest Earning Assets
5,209,360
66,614
5.15
5,078,596
66,596
5.28
Cash and due from banks
56,469
57,464
Other assets, net
256,415
241,962
Total Assets
$
5,522,244
$
5,378,022
Liabilities
Savings and interest-bearing checking
3,008,287
11,915
1.61
2,836,290
12,840
1.84
Time deposits
817,202
6,482
3.22
871,377
8,115
3.78
Other borrowings
67,213
917
5.53
92,185
1,504
6.58
Interest Bearing Liabilities
3,892,702
19,314
2.01
%
3,799,852
22,459
2.40
Non-interest bearing deposits
1,006,600
1,007,665
Other liabilities
113,419
109,214
Shareholders’ equity
509,523
461,291
Total liabilities and shareholders’ equity
$
5,522,244
$
5,378,022
Net Interest Income
$
47,300
$
44,137
Net Interest Income as a Percent of Average Interest Earning Assets
3.65
%
3.49
%
(1)
Interest on tax-exempt loans and securities is presented on a fully tax equivalent basis assuming a marginal tax rate of 21%.
(2)
Annualized
4
Commercial Loan Portfolio Analysis as of March 31, 2026
Total Commercial Loans
Watch Credits
Percent of Loan Category in Watch Credit
Loan Category
All Loans
Performing
Non-accrual
Total
(Dollars in thousands)
Land
$
11,417
$
13
$
—
$
13
0.1
%
Land Development
19,976
—
—
—
—
Construction
126,121
—
14,314
14,314
11.3
Income Producing
814,531
22,152
12,696
34,848
4.3
Owner Occupied
675,873
12,109
67
12,176
1.8
Total Commercial Real Estate Loans
$
1,647,918
$
34,274
$
27,077
$
61,351
3.7
Other Commercial Loans
$
619,451
$
42,261
—
$
42,261
6.8
Total non-performing commercial loans
$
27077
Commercial Loan Portfolio Analysis as of December 31, 2025