Press Releases April 19, 2026 08:00 PM

ServisFirst Bancshares, Inc. Announces Results For First Quarter of 2026

ServisFirst Bancshares Reports Strong Q1 2026 Results with 31% Earnings Growth and Expanded Net Interest Margin

By Jordan Park SFBS
ServisFirst Bancshares, Inc. Announces Results For First Quarter of 2026
SFBS

ServisFirst Bancshares, Inc. announced robust financial results for Q1 2026, highlighting a 31% increase in diluted earnings per share to $1.52 compared to Q1 2025, improved net interest margin of 3.53%, and strong loan and deposit growth. The bank's efficiency ratio improved to under 30%, and key capital ratios strengthened, reflecting sound financial health and positive outlook for continued growth across Southeastern US markets.

Key Points

  • Diluted EPS grew 31% year-over-year to $1.52, with margin expansion contributing to earnings growth.
  • Loans increased by $249 million (7% annualized) and deposits grew by $268 million (8% annualized) during the quarter.
  • Efficiency ratio improved to below 30%, driven by controlled expenses despite regional expansion, including into Houston market.
  • Sectors impacted include financial services, banking, and commercial lending, affecting regional economic growth and investor confidence.

BIRMINGHAM, Ala., April 20, 2026 (GLOBE NEWSWIRE) -- ServisFirst Bancshares, Inc. (NYSE: SFBS), today announced earnings and operating results for the quarter ended March 31, 2026.

First Quarter 2026 Highlights:

  • Diluted earnings per share of $1.52 for the quarter, up 31% from the first quarter of 2025.
  • Diluted earnings per share includes the impact of a $1.0 million, or $0.02 per share, accounting reversal related to BOLI income in the fourth quarter of 2025. Excluding this impact, diluted earnings per share would have been $1.54, a 33% increase from the first quarter of 2025.
  • Net interest margin of 3.53%, up 15 basis points from the fourth quarter of 2025 and 61 basis points from the first quarter of 2025.
  • Efficiency ratio under 30%, down from 35% in the first quarter of 2025.
  • Cost of interest-bearing deposits of 2.79%, down 22 basis points from the fourth quarter of 2025 and 61 basis points from the first quarter of 2025.
  • Loans grew $249 million, or 7% annualized, during the quarter.
  • Deposits grew $268 million, or 8% annualized, during the quarter.
  • Book value per share of $34.99, up 13.4% annualized from the fourth quarter of 2025 and 14.5% from the first quarter of 2025.
  • Liquidity remains strong with $1.84 billion in cash and cash equivalents, equaling 10% of our total assets, and no FHLB advances or brokered deposits.
  • Consolidated common equity tier 1 capital to risk-weighted assets increased from 11.48% in the first quarter of 2025 to 11.86% in the first quarter of 2026.
  • Return on average common stockholder’s equity increased from 15.63% to 17.91% year-over-year.

Tom Broughton, Chairman, President, and CEO, said, “The outlook for loan and deposit growth for the remainder of the year is very positive and we believe we have the best commercial bankers in the Southeast.”

David Sparacio, CFO, said, “We delivered another quarter of stellar results from a net income perspective. Compared with the same quarter a year ago, our net income increased 31%, and for the second consecutive quarter, our efficiency ratio was below 30%. We continue to see margin expansion and net income growth, which resulted in a 1.89% Return on Average Assets, despite robust hiring in our new Houston market late last year.”

* This press release includes certain non-GAAP financial measures: tangible common stockholders' equity, total tangible assets, tangible book value per share, and tangible common equity to total tangible assets. Please see “GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures.”

FINANCIAL SUMMARY (UNAUDITED)
 (in Thousands except share and per share amounts) Period Ending
March 31, 2026 Period Ending
December 31,
2025 % Change
From Period
Ending
December 31,
2025 to Period
Ending March
31, 2026 Period Ending
March 31, 2025 % Change From
Period Ending
March 31, 2025
to Period
Ending March
31, 2026 QUARTERLY OPERATING RESULTS                   Net Income $82,971  $86,384  (4.0)% $63,224  31.2 % Net Income Available to Common Stockholders $82,971  $86,353  (3.9)% $63,224  31.2 % Diluted Earnings Per Share $1.52  $1.58  (3.8)% $1.16  31.0 % Return on Average Assets  1.89%  1.91%     1.45%    Return on Average Common Stockholders' Equity  17.91%  18.93%     15.63%    Average Diluted Shares Outstanding  54,695,017   54,675,802      54,656,630                                             BALANCE SHEET                   Total Assets $18,171,287  $17,727,190  2.5 % $18,636,766  (2.5)% Loans  13,945,913   13,696,912  1.8 %  12,886,831  8.2 % Non-interest-bearing Demand Deposits  2,836,622   2,684,272  5.7 %  2,647,577  7.1 % Total Deposits  14,486,364   14,219,034  1.9 %  14,429,061  0.4 % Stockholders' Equity  1,912,537   1,850,347  3.4 %  1,668,900  14.6 % 


DETAILED FINANCIALS

ServisFirst Bancshares, Inc. reported net income and net income available to common stockholders of $83.0 million, $86.4 million, and $63.2 million for the first quarter of 2026, fourth quarter of 2025, and first quarter of 2025, respectively. Basic and diluted earnings per common share were both $1.52 in the first quarter of 2026, compared to $1.58 in the fourth quarter of 2025 and $1.16 in the first quarter of 2025.

Annualized return on average assets was 1.89% and annualized return on average common stockholders’ equity was 17.91% for the first quarter of 2026, compared to 1.45% and 15.63%, respectively, for the first quarter of 2025.

Net interest income was $148.1 million for the first quarter of 2026, compared to $146.5 million for the fourth quarter of 2025 and $123.6 million for the first quarter of 2025. The net interest margin in the first quarter of 2026 was 3.53% compared to 3.38% in the fourth quarter of 2025 and 2.92% in the first quarter of 2025. Loan yields were 6.18% during the first quarter of 2026 compared to 6.29% during the fourth quarter of 2025 and 6.28% during the first quarter of 2025. Investment yields were 3.78% during the first quarter of 2026 compared to 3.77% during the fourth quarter of 2025, and 3.31% during the first quarter of 2025. Average interest-bearing deposit rates were 2.79% during the first quarter of 2026, compared to 3.01% during the fourth quarter of 2025 and 3.40% during the first quarter of 2025. Average federal funds purchased rates were 3.74% during the first quarter of 2026, compared to 4.01% during the fourth quarter of 2025 and 4.50% during the first quarter of 2025. During the fourth quarter of 2025, the Company redeemed its $30 million 4.5% Subordinated Notes due November 2027.

Average loans for the first quarter of 2026 were $13.78 billion, an increase of $279.5 million, or 8.4% annualized, from average loans of $13.50 billion for the fourth quarter of 2025, and an increase of $1.08 billion, or 8.5%, from average loans of $12.71 billion for the first quarter of 2025. Ending total loans for the first quarter of 2026 were $13.95 billion, an increase of $249.0 million, or 7.4% annualized, from $13.70 billion for the fourth quarter of 2025, and an increase of $1.06 billion, or 8.2%, from $12.89 billion for the first quarter of 2025.

Average total deposits for the first quarter of 2026 were $14.13 billion, a decrease of $84.6 million, or 2.4% annualized, from average total deposits of $14.21 billion for the fourth quarter of 2025, and an increase of $236.9 million, or 1.7%, from average total deposits of $13.89 billion for the first quarter of 2025. Ending total deposits for the first quarter of 2026 were $14.49 billion, an increase of $267.3 million, or 7.6% annualized, from $14.22 billion for the fourth quarter of 2025, and an increase of $57.3 million, or 0.4%, from $14.43 billion for the first quarter of 2025.

Non-performing assets to total assets were 1.00% for the first quarter of 2026, compared to 0.97% for the fourth quarter of 2025 and 0.40% for the first quarter of 2025. The year-over-year increase was attributable to a large real-estate secured relationship. Annualized net charge-offs to average loans were 0.25% for the first quarter of 2026, compared to 0.20% for the fourth quarter of 2025 and 0.19% for the first quarter of 2025. During the first quarter of 2026, we recorded a $6.7 million charge-off related to a long-standing impaired relationship. The allowance for credit losses to total loans at March 31, 2026, December 31, 2025, and March 31, 2025, was 1.25%, 1.25%, and 1.28%, respectively. We recorded a $10.6 million provision for credit losses in the first quarter of 2026 compared to $8.1 million in the fourth quarter of 2025, and $6.5 million in the first quarter of 2025.

Non-interest income increased $2.6 million, or 31.0%, to $10.8 million for the first quarter of 2026 from $8.3 million in the first quarter of 2025, and decreased $4.9 million, or 30.9%, on a linked quarter basis. Service charges on deposit accounts increased $738,000, or 28.9%, to $3.3 million for the first quarter of 2026 from $2.6 million in the first quarter of 2025, and were relatively flat, on a linked quarter basis. We increased our service charge rates on many of our treasury management products in July of 2025. Mortgage banking revenue increased $1.3 million, or 208.6%, to $1.9 million for the first quarter of 2026 from $613,000 in the first quarter of 2025, and increased $228,000, or 13.7%, on a linked quarter basis. The increase on a year-over year basis was primarily due to an increase in loans sold into the secondary market. We also increased our per-loan administrative fee in the first quarter of 2026. Credit card income increased $234,000, or 11.9%, to $2.2 million for the first quarter of 2026 from $2.0 million in the first quarter of 2025, and increased $367,000, or 20.0%, on a linked quarter basis. Bank-owned life insurance (“BOLI”) income increased $685,000, or 32.1%, to $2.8 million for the first quarter of 2026 from $2.1 million in the first quarter of 2025, and decreased $5.3 million, or 65.4%, on a linked quarter basis. The decrease on a linked quarter basis was due to a death benefit received in the fourth quarter of 2025, as well as a $1.0 million, or $.02 per share, reduction in the first quarter of 2026 arising due to an adjustment of the amount in the fourth quarter of 2025. Other operating income decreased $373,000, or 37.3%, to $628,000 for the first quarter of 2026 from $1.0 million in the first quarter of 2025, and decreased $76,000, or 10.8%, on a linked quarter basis.

Non-interest expense increased $1.3 million, or 2.8%, to $47.4 million for the first quarter of 2026 from $46.1 million in the first quarter of 2025, and increased $701,000, or 1.5%, on a linked quarter basis. Salary and benefit expense increased $4.0 million, or 17.4%, to $26.9 million for the first quarter of 2026 from $22.9 million in the first quarter of 2025, and increased $3.0 million, or 12.6%, on a linked quarter basis, primarily due to the full impact of our Houston market expansion and seasonally higher payroll taxes during the first quarter of 2026. The number of full-time equivalent employees increased by 32 (of which, 24 are frontline), or 5.0%, to 668 at March 31, 2026 compared to 636 at March 31, 2025, and increased by 2 from the end of the fourth quarter of 2025. Equipment and occupancy expense increased $226,000, or 6.1%, to $3.9 million for the first quarter of 2026 from $3.7 million in the first quarter of 2025, and increased $211,000, or 5.6%, on a linked quarter basis. Third party processing and other services expense decreased $213,000, or 2.8%, to $7.5 million for the first quarter of 2026 from $7.7 million in the first quarter of 2025, and decreased $254,000, or 3.3%, on a linked quarter basis. Professional services expense increased $10,000, or 0.5%, to $1.9 million for the first quarter of 2026 from $1.9 million in the first quarter of 2025, and increased $462,000, or 31.2%, on a linked quarter basis. Other operating expenses decreased $2.6 million, or 37.4%, to $4.4 million for the first quarter of 2026 from $6.9 million in the first quarter of 2025, and decreased $2.8 million, or 39.5%, on a linked quarter basis. The efficiency ratio was 29.80% during the first quarter of 2026 compared to 34.97% during the first quarter of 2025 and 28.78% during the fourth quarter of 2025.

Income tax expense increased $2.1 million, or 13.4%, to $18.0 million in the first quarter of 2026, compared to $15.9 million in the first quarter of 2025, and decreased $3.2 million, or 15.2%, on a linked quarter basis. Our effective tax rate was 17.82% for the first quarter of 2026 compared to 20.06% for the first quarter of 2025, and 19.72% on a linked quarter basis. During the first quarter of 2026, we purchased Investment Tax Credits, which reduced our tax expense. We recognized a reduction in provision for income taxes resulting from excess tax benefits from the exercise and vesting of stock options and restricted stock during the first quarters of 2026 and 2025 of $229,000 and $470,000, respectively.
About ServisFirst Bancshares, Inc.

ServisFirst Bancshares, Inc. (the “Company”) is a bank holding company based in Birmingham, Alabama. Through its subsidiary ServisFirst Bank (the “Bank”), the Company provides business and personal financial services from locations in Alabama, Florida, Georgia, North and South Carolina, Tennessee, Texas and Virginia. Through the Bank, we originate commercial, consumer and other loans and accept deposits, provide electronic banking services, such as online and mobile banking, including remote deposit capture, deliver treasury and cash management services and provide correspondent banking services to other financial institutions.

ServisFirst Bancshares, Inc. files periodic reports with the U.S. Securities and Exchange Commission (SEC). Copies of its filings may be obtained through the SEC’s website at www.sec.gov or at www.servisfirstbancshares.com.

Statements in this press release that are not historical facts, including, but not limited to, statements concerning future operations, results or performance, are hereby identified as “forward-looking statements” for the purpose of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”) and Section 27A of the Securities Act of 1933, as amended (the “Securities Act”). The words “believe,” “expect,” “anticipate,” “project,” “plan,” “intend,” “will,” “could,” “would,” “might” and similar expressions often signify forward-looking statements. Such statements involve inherent risks and uncertainties. The Company cautions that such forward-looking statements, wherever they occur in this press release or in other statements attributable to the Company, are necessarily estimates reflecting the judgment of the Company’s senior management and involve risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Such forward-looking statements should, therefore, be considered in light of various factors that could affect the accuracy of such forward-looking statements, including, but not limited to: general economic conditions, especially in the credit markets and in the Southeast; the impact of tariffs and trade wars on general economic conditions, the performance of the capital markets; changes in interest rates, yield curves and interest rate spread relationships; changes in accounting principles and tax laws, policies or guidelines; changes in legislation or regulatory requirements; changes in our loan portfolio and the deposit base; possible changes in laws and regulations and governmental monetary and fiscal policies, including, but not limited to, the Federal Reserve policies in connection with continued or re-emerging inflationary pressures and the ability of the U.S. Congress to increase the U.S. statutory debt limit as needed; computer hacking or cyber-attacks resulting in unauthorized access to confidential or proprietary information; substantial, unexpected or prolonged changes in the level or cost of liquidity; the cost and other effects of legal and administrative cases and similar contingencies; possible changes in the creditworthiness of customers and the possible impairment of the collectability of loans and the value of collateral; the effect of natural disasters, such as hurricanes and tornados, in our geographic markets; the threat of foreign wars; and increased competition from both banks and nonbank financial institutions. The foregoing list of factors is not exhaustive. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in our most recent Annual Report on Form 10-K, our subsequent Quarterly Reports on Form 10-Q and our other SEC filings. If one or more of the factors affecting our forward-looking information and statements proves incorrect, then our actual results, performance or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements. Accordingly, you should not place undue reliance on any forward-looking statements, which speak only as of the date made. The Company assumes no obligation to update or revise any forward-looking statements that are made from time to time.

More information about ServisFirst Bancshares, Inc. may be obtained over the Internet at www.servisfirstbancshares.com or by calling (205) 949-0302.

SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)                  (In thousands except share and per share data)                       1st Quarter 2026 4th Quarter 2025 3rd Quarter 2025 2nd Quarter 2025 1st Quarter 2025 CONSOLIDATED STATEMENT OF INCOME                     Interest income $241,480  $251,388  $251,308  $246,635  $241,096  Interest expense  93,332   104,867   117,860   114,948   117,543  Net interest income  148,148   146,521   133,448   131,687   123,553  Provision for credit losses  10,637   7,922   9,463   11,296   6,630  Net interest income after provision for credit losses  137,511   138,599   123,985   120,391   116,923  Non-interest income  10,840   15,691   2,833   421   8,277  Non-interest expense  47,384   46,683   47,996   44,204   46,107  Income before income tax  100,967   107,607   78,822   76,608   79,093  Provision for income tax  17,996   21,223   13,251   15,184   15,869  Net income  82,971   86,384   65,571   61,424   63,224  Preferred stock dividends  -   31   -   31   -  Net income available to common stockholders $82,971  $86,353  $65,571  $61,393  $63,224  Earnings per share - basic $1.52  $1.58  $1.20  $1.12  $1.16  Earnings per share - diluted $1.52  $1.58  $1.20  $1.12  $1.16  Average diluted shares outstanding  54,695,017   54,675,802   54,667,955   54,664,480   54,656,630                        CONSOLIDATED BALANCE SHEET DATA                     Total assets $18,171,287  $17,727,190  $17,584,199  $17,378,628  $18,636,766  Loans  13,945,913   13,696,912   13,311,967   13,232,560   12,886,831  Debt securities  1,684,421   1,728,901   1,849,739   1,914,503   1,905,550  Non-interest-bearing demand deposits  2,836,622   2,684,272   2,598,895   2,632,058   2,647,577  Total deposits  14,486,364   14,219,034   14,106,922   13,862,319   14,429,061  Borrowings  34,750   34,750   64,750   64,747   64,745  Stockholders' equity  1,912,537   1,850,347   1,781,647   1,721,783   1,668,900                        Shares outstanding  54,663,123   54,624,955   54,621,441   54,618,545   54,601,217  Book value per share $34.99  $33.87  $32.62  $31.52  $30.57  Tangible book value per share (1) $34.74  $33.62  $32.37  $31.27  $30.32                        SELECTED FINANCIAL RATIOS (Annualized)                     Net interest margin  3.53%  3.38%  3.09%  3.10%  2.92% Return on average assets  1.89%  1.91%  1.47%  1.40%  1.45% Return on average common stockholders' equity  17.91%  18.93%  14.88%  14.56%  15.63% Efficiency ratio  29.80%  28.78%  35.22%  33.46%  34.97% Non-interest expense to average earning assets  1.13%  1.08%  1.11%  1.04%  1.09%                       CAPITAL RATIOS (2)                     Common equity tier 1 capital to risk-weighted assets  11.86%  11.65%  11.49%  11.38%  11.48% Tier 1 capital to risk-weighted assets  11.87%  11.66%  11.50%  11.38%  11.48% Total capital to risk-weighted assets  13.13%  12.93%  12.91%  12.81%  12.93% Tier 1 capital to average assets  10.71%  10.26%  10.01%  9.78%  9.48% Tangible common equity to total tangible assets (1)  10.46%  10.37%  10.06%  9.84%  8.89%                       (1) This press release contains certain non-GAAP financial measures. Please see “GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures.” (2) Regulatory capital ratios for most recent period are preliminary. 


GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures

This press release contains the non-GAAP financial measures of tangible common stockholders’ equity, total tangible assets, tangible book value per share and tangible common equity to total tangible assets, each of which excludes goodwill associated with our acquisition of Metro Bancshares, Inc. in January 2015.

We believe these non-GAAP financial measures provide useful information to management and investors that is supplementary to our financial condition, results of operations and cash flows computed in accordance with GAAP; however, we acknowledge that these non-GAAP financial measures have limitations. As such, you should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP financial measures that other companies, including those in our industry, use. The following reconciliation table provides a more detailed analysis of the non-GAAP financial measures as of and for the comparative periods presented in this press release. Dollars are in thousands, except share and per share data.

                      At March 31, 2026 At December 31,
2025 At September 30,
2025 At June 30,
2025 At March 31,
2025 Book value per share - GAAP$34.99   $33.87   $32.62   $31.52   $30.57   Total common stockholders' equity - GAAP 1,912,537    1,850,347    1,781,647    1,721,783    1,668,900   Adjustment for Goodwill (13,615)   (13,615)   (13,615)   (13,615)   (13,615)  Tangible common stockholders' equity - non-GAAP$1,898,922   $1,836,732   $1,768,032   $1,708,168   $1,655,285   Tangible book value per share - non-GAAP$34.74   $33.62   $32.37   $31.27   $30.32                        Stockholders' equity to total assets - GAAP 10.53 %  10.44 %  10.13 %  9.91 %  8.95 % Total assets - GAAP$18,171,287   $17,727,190   $17,584,199   $17,378,628   $18,636,766   Adjustment for Goodwill (13,615)   (13,615)   (13,615)   (13,615)   (13,615)  Total tangible assets - non-GAAP$18,157,672   $17,713,575   $17,570,584   $17,365,013   $18,623,151   Tangible common equity to total tangible assets - non-GAAP 10.46 %  10.37 %  10.06 %  9.84 %  8.89 %                      


CONSOLIDATED BALANCE SHEETS (UNAUDITED)          (Dollars in thousands)            March 31,
2026 March 31,
2025 % Change ASSETS          Cash and due from banks $100,561  $121,645  (17)% Interest-bearing balances due from depository institutions  1,218,296   3,218,753  (62)% Federal funds sold and securities purchased with agreement to resell  517,765   9,322  5,454 % Cash and cash equivalents  1,836,622   3,349,720  (45)% Available for sale debt securities, at fair value  1,037,151   1,203,837  (14)% Held to maturity debt securities (fair value of $602,476 and $639,455, respectively)  647,270   701,713  (8)% Restricted equity securities  12,466   12,156  3 % Mortgage loans held for sale  12,893   11,386  13 % Loans  13,945,913   12,886,831  8 % Less allowance for credit losses  (173,905)  (165,034) 5 % Loans, net  13,772,008   12,721,797  8 % Premises and equipment, net  62,056   59,431  4 % Goodwill  13,615   13,615  - % Other assets  777,206   563,111  38 % Total assets $18,171,287  $18,636,766  (2)% LIABILITIES AND STOCKHOLDERS' EQUITY          Liabilities:          Deposits:          Non-interest-bearing demand $2,836,622  $2,647,577  7 % Interest-bearing  11,649,742   11,781,484  (1)% Total deposits  14,486,364   14,429,061  - % Federal funds purchased  1,546,987   2,358,326  (34)% Other borrowings  34,750   64,745  (46)% Other liabilities  190,649   115,734  65 % Total liabilities  16,258,750   16,967,866  (4)% Stockholders' equity:          Preferred stock, par value $0.001 per share; 1,000,000 authorized and undesignated at          March 31, 2026 and March 31, 2025  -   -  - % Common stock, par value $0.001 per share; 200,000,000 shares authorized; 54,663,123 shares          issued and outstanding at March 31, 2026, and 54,601,217          shares issued and outstanding at March 31, 2025  55   54  2 % Additional paid-in capital  238,644   235,840  1 % Retained earnings  1,676,013   1,457,614  15 % Accumulated other comprehensive loss  (2,675)  (25,108) (89)% Total stockholders' equity attributable to ServisFirst Bancshares, Inc.  1,912,037   1,668,400  15 % Noncontrolling interest  500   500  - % Total stockholders' equity  1,912,537   1,668,900  15 % Total liabilities and stockholders' equity $18,171,287  $18,636,766  (2)% 


CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)    (In thousands except per share data)         Three Months Ended March
31,   2026 2025 Interest income:       Interest and fees on loans $210,066 $196,936 Investment Securities  16,099  16,029 Federal funds sold and securities purchased with agreement to resell  5,561  20 Other interest and dividends  9,754  28,111 Total interest income  241,480  241,096 Interest expense:       Deposits  78,285  94,745 Borrowed funds  15,047  22,798 Total interest expense  93,332  117,543 Net interest income  148,148  123,553 Provision for credit losses  10,637  6,630 Net interest income after provision for credit losses  137,511  116,923 Noninterest income:       Service charges on deposit accounts  3,296  2,558 Mortgage banking  1,892  613 Credit card income  2,202  1,968 Bank-owned life insurance income  2,822  2,137 Other operating income  628  1,001 Total noninterest income  10,840  8,277 Noninterest expenses:       Salaries and employee benefits  26,853  22,879 Equipment and occupancy expense  3,948  3,722 Third party processing and other services  7,525  7,738 Professional services  1,943  1,933 FDIC and other regulatory assessments  2,745  2,854 Other real estate owned expense  20  33 Other operating expenses  4,350  6,948 Total noninterest expenses  47,384  46,107 Income before income taxes  100,967  79,093 Provision for income taxes  17,996  15,869 Net income  82,971  63,224 Dividends on preferred stock  -  - Net income available to common stockholders $82,971 $63,224 Basic earnings per common share $1.52 $1.16 Diluted earnings per common share $1.52 $1.16 


LOANS BY TYPE (UNAUDITED)               (In thousands)                                 1st Quarter 2026 4th Quarter 2025 3rd Quarter 2025 2nd Quarter 2025 1st Quarter 2025Commercial, financial and agricultural $3,189,704 $3,146,736 $2,945,784 $2,966,191 $2,924,533Real estate - construction  1,531,042  1,457,628  1,532,285  1,735,405  1,599,410Real estate - mortgage:               Owner-occupied commercial  2,718,512  2,739,823  2,680,055  2,557,711  2,543,8191-4 family mortgage  1,695,140  1,671,713  1,625,296  1,561,461  1,494,189Non-owner occupied commercial  4,739,642  4,603,389  4,448,710  4,338,697  4,259,566Subtotal: Real estate - mortgage  9,153,294  9,014,925  8,754,061  8,457,869  8,297,574Consumer  71,873  77,623  79,837  73,095  65,314Total loans $13,945,913 $13,696,912 $13,311,967 $13,232,560 $12,886,831


SUMMARY OF CREDIT LOSS EXPERIENCE (UNAUDITED)                (Dollars in thousands)                  1st Quarter 2026 4th Quarter 2025 3rd Quarter 2025 2nd Quarter 2025 1st Quarter 2025Allowance for credit losses:                   Beginning balance$171,683  $170,235  $169,959  $165,034  $164,458 Loans charged off:                   Commercial, financial and agricultural 8,291   7,695   7,947   6,849   2,415 Real estate - construction -   -   -   -   46 Real estate - mortgage 91   64   1,294   580   3,571 Consumer 171   466   110   73   60 Total charge offs 8,553   8,224   9,350   7,502   6,092 Recoveries:                   Commercial, financial and agricultural 178   1,532   237   959   171 Real estate - construction -   -   30   -   - Real estate - mortgage -   -   -   1   - Consumer 35   10   21   58   27 Total recoveries 213   1,542   288   1,018   198 Net charge-offs 8,340   6,682   9,062   6,484   5,894 Provision for credit losses 10,562   8,130   9,338   11,409   6,470 Ending balance$173,905  $171,683  $170,235  $169,959  $165,034                     Allowance for credit losses to total loans 1.25%  1.25%  1.28%  1.28%  1.28%                    Allowance for credit losses to total average loans 1.26%  1.27%  1.29%  1.31%  1.30%Net charge-offs to total average loans 0.25%  0.20%  0.27%  0.20%  0.19%                    Provision for credit losses to total average loans 0.31%  0.24%  0.28%  0.35%  0.21%Nonperforming assets:                   Nonaccrual loans$176,613  $168,351  $166,662  $68,619  $73,793 Loans 90+ days past due and accruing 1,274   478   965   3,549   111 Other real estate owned and                   repossessed assets 3,072   2,583   611   311   756 Total$180,959  $171,412  $168,238  $72,479  $74,660                     Nonperforming loans to total loans 1.28%  1.23%  1.26%  0.55%  0.57%Nonperforming assets to total assets 1.00%  0.97%  0.96%  0.42%  0.40%Nonperforming assets to earning assets 1.05%  1.01%  1.00%  0.43%  0.41%Allowance for credit losses to nonaccrual loans 98.47%  101.98%  102.14%  247.69%  223.64%                    


CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)          (In thousands except per share data)            1st Quarter
2026 4th Quarter
2025 3rd Quarter
2025 2nd Quarter
2025 1st Quarter
2025 Interest income:                Interest and fees on loans $210,066 $214,252 $210,987  $206,521  $196,936 Investment Securities  16,099  17,204  17,343   16,567   16,029 Federal funds sold and securities purchased with agreement to resell  5,561  5,671  4,724   1,592   20 Other interest and dividends  9,754  14,261  18,254   21,955   28,111 Total interest income  241,480  251,388  251,308   246,635   241,096 Interest expense:                Deposits  78,285  86,920  98,735   93,488   94,745 Borrowed funds  15,047  17,947  19,125   21,460   22,798 Total interest expense  93,332  104,867  117,860   114,948   117,543 Net interest income  148,148  146,521  133,448   131,687   123,553 Provision for credit losses  10,637  7,922  9,463   11,296   6,630 Net interest income after provision for credit losses  137,511  138,599  123,985   120,391   116,923 Noninterest income:                Service charges on deposit accounts  3,296  3,339  3,316   2,671   2,558 Mortgage banking  1,892  1,664  1,864   1,323   613 Credit card income  2,202  1,835  2,405   2,119   1,968 Securities losses  -  -  (7,812)  (8,563)  - Bank-owned life insurance income  2,822  8,149  2,405   2,126   2,137 Other operating income  628  704  655   745   1,001 Total noninterest income  10,840  15,691  2,833   421   8,277 Noninterest expenses:                Salaries and employee benefits  26,853  23,838  25,522   22,576   22,879 Equipment and occupancy expense  3,948  3,737  3,615   3,523   3,722 Third party processing and other services  7,525  7,779  8,095   8,005   7,738 Professional services  1,943  1,481  1,857   1,904   1,933 FDIC and other regulatory assessments  2,745  2,641  2,742   2,753   2,854 Other real estate owned expense  20  13  82   27   33 Other operating expenses  4,350  7,194  6,083   5,416   6,948 Total noninterest expenses  47,384  46,683  47,996   44,204   46,107 Income before income taxes  100,967  107,607  78,822   76,608   79,093 Provision for income taxes  17,996  21,223  13,251   15,184   15,869 Net income  82,971  86,384  65,571   61,424   63,224 Dividends on preferred stock  -  31  -   31   - Net income available to common stockholders $82,971 $86,353 $65,571  $61,393  $63,224 Basic earnings per common share $1.52 $1.58 $1.20  $1.12  $1.16 Diluted earnings per common share $1.52 $1.58 $1.20  $1.12  $1.16 


AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS (UNAUDITED) ON A FULLY TAXABLE-EQUIVALENT BASIS (Dollars in thousands)                                   1st Quarter 2026 4th Quarter 2025 3rd Quarter 2025 2nd Quarter 2025 1st Quarter 2025   Average Balance Yield /
Rate Average Balance Yield /
Rate Average Balance Yield /
Rate Average Balance Yield /
Rate Average Balance Yield /
Rate Assets:                               Interest-earning assets:                               Loans, net of unearned income (1)                               Taxable $13,751,447  6.18% $13,474,271  6.30% $13,175,297  6.34% $12,979,759  6.37% $12,683,077  6.29% Tax-exempt (2)  32,976  5.82   30,670  5.52   30,478  5.47   30,346  5.51   25,044  4.94  Total loans, net of unearned                               income  13,784,423  6.18   13,504,941  6.29   13,205,775  6.34   13,010,105  6.37   12,708,121  6.28  Mortgage loans held for sale  10,680  4.40   9,887  4.49   11,351  4.82   11,739  5.23   6,731  4.76  Debt securities:                               Taxable  1,702,499  3.78   1,826,632  3.77   1,926,101  3.60   1,965,089  3.37   1,934,739  3.31  Tax-exempt (2)  444  5.41   444  5.41   444  5.41   492  4.88   589  5.43  Total securities (3)  1,702,943  3.78   1,827,076  3.77   1,926,545  3.60   1,965,581  3.37   1,935,328  3.31  Federal funds sold and securities                               purchased with agreement to resell  501,377  4.50   469,148  4.79   365,733  5.12   124,303  5.14   1,670  4.86  Restricted equity securities  12,228  6.17   12,193  6.61   12,167  6.36   12,146  6.64   11,461  7.43  Interest-bearing balances with banks  1,041,026  3.73   1,393,155  4.00   1,608,118  4.45   1,952,479  4.47   2,526,382  4.48  Total interest-earning assets $17,052,677  5.75% $17,216,400  5.79% $17,129,689  5.82% $17,076,353  5.80% $17,189,693  5.69% Non-interest-earning assets:                               Cash and due from banks  103,847      102,066      103,470      109,506      108,540     Net premises and equipment  61,253      61,009      60,614      59,944      59,633     Allowance for credit losses, accrued                               interest and other assets  552,337      556,704      415,586      380,700      352,282     Total assets $17,770,114     $17,936,179     $17,709,359     $17,626,503     $17,710,148                                     Interest-bearing liabilities:                               Interest-bearing deposits:                               Checking $2,101,953  1.60% $2,126,615  1.77% $2,069,440  2.16% $2,222,000  1.78% $2,461,900  2.38% Savings  110,843  1.42   106,551  1.52   103,668  1.66   101,506  1.63   101,996  1.61  Money market  7,812,168  3.01   7,816,487  3.23   7,965,115  3.67   7,616,747  3.67   7,363,163  3.61  Time deposits  1,373,023  3.42   1,392,749  3.80   1,344,257  3.97   1,321,404  4.09   1,361,558  4.24  Total interest-bearing deposits  11,397,987  2.79   11,442,402  3.01   11,482,480  3.41   11,261,657  3.33   11,288,617  3.40  Federal funds purchased  1,593,215  3.74   1,712,399  4.01   1,640,377  4.46   1,855,860  4.49   1,994,766  4.50  Other borrowings  34,750  4.05   59,207  4.21   64,761  4.21   64,750  4.26   64,750  4.30  Total interest-bearing liabilities $13,025,952  2.91% $13,214,008  3.15% $13,187,618  3.55% $13,182,267  3.50% $13,348,133  3.57% Non-interest-bearing liabilities:                               Non-interest-bearing                               checking  2,728,354      2,768,495      2,651,043      2,633,552      2,600,775     Other liabilities  137,231      143,680      122,873      119,829      120,291     Stockholders' equity  1,879,072      1,813,097      1,762,980      1,716,232      1,670,402     Accumulated other comprehensive                               loss  (495)     (3,101)     (15,155)     (25,377)     (29,453)    Total liabilities and                               stockholders' equity $17,770,114     $17,936,179     $17,709,359     $17,626,503     $17,710,148     Net interest spread    2.84%    2.64%    2.27%    2.30%    2.12% Net interest margin    3.53%    3.38%    3.09%    3.10%    2.92%                                 (1) Average loans include nonaccrual loans in all periods. Loan fees of $5,186, $5,464, $6,103, $4,430, and $3,764 are included in interest income in the first quarter of 2026, fourth quarter of 2025, third quarter of 2025, second quarter of 2025, and first quarter of 2025, respectively. (2) Interest income and yields are presented on a fully taxable equivalent basis using a tax rate of 21%. (3) Unrealized losses on debt securities of $(2,713), $(6,311), $(22,574), $(36,381), and $(41,970) for the first quarter of 2026, fourth quarter of 2025, third quarter of 2025, second quarter of 2025, and first quarter of 2025, respectively, are excluded from the yield calculation. 



Risks

  • Increased non-performing assets, particularly a large real-estate secured relationship, which may affect credit quality.
  • Exposure to credit losses as evidenced by $10.6 million provision and a $6.7 million charge-off during Q1 2026.
  • Economic and regulatory uncertainties including interest rate fluctuations, capital markets performance, and regional economic conditions in the Southeast and U.S. legislation changes could impact future results.

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