HANCOCK WHITNEY CORP
For the period ended Mar 31, 2026. Filed May 7, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 7, 2026
HWC$71.48+0.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-05.
0001193125-25-265159
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0001193125-26-212425
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 231 previous paragraphs and 223 current paragraphs.
118 unchanged; 78 reworded; 27 added; 30 removed; 5 previous and 0 current paragraphs rearranged.
Tables are not compared: 18 previous and 18 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (27)
Current report
the impact of supplemental disclosure items on our results of operations;
Current report
risks related to the development and use of artificial intelligence;
Current report
the impact of federal government shutdowns, and uncertainties stemming from extended durations of such;
Current report
Securities Portfolio Restructuring
Current report
In January 2026, we executed a restructuring of our available for sale securities portfolio whereby we sold securities with an amortized cost of $1.5 billion and average yield of 2.49% and reinvested the $1.4 billion of proceeds with the purchase of securities with an average yield of 4.35%. We anticipate a 50 month payback period to cover the $98.5 million pre-tax loss associated with the sale, or approximately $0.95 per diluted share after tax. The restructure is expected to contribute approximately $23.8 million to net interest income, or $0.23 per diluted share, resulting in increases of 32 basis points (bps) to the securities portfolio yield and 7 bps to net interest margin on an annual basis.
Current report
The U.S. economy began the year with hopeful trends despite ongoing pressures of elevated tariffs, sticky inflation and a weakened labor market. In late February, the military conflict in the Middle East caused widespread disruption to energy markets and supply chains and created significant uncertainty as to the near and long term economic effects. Driven by the sharp increase in energy prices, inflation rose to 3.3% on an annualized basis in March 2026, up considerably from a recent trend of about 2.5% annualized. Gross domestic product (GDP) for the first quarter of 2026, once expected to rebound meaningfully from the previous quarter to 2.6% on an annualized basis, was considerably lower at 2.0%. While the Federal Reserve remains committed to its dual mandate of maximum employment and price stability, the typical challenges it faces in balancing these dynamics will deepen in an environment of inflation acceleration and slower growth. During the first quarter of 2026, the Federal Reserve held benchmark interest rate steady at 3.5% to
Current report
3.75%. The duration of the conflict in the Middle East and the terms upon which it is resolved will likely be the most consequential variables for current economic conditions.
Current report
In the first quarter of 2026, conditions in the financial services industry were mostly favorable despite persistent economic pressures and growing economic uncertainty. Within our markets, we experienced solid loan production, while deposit cost pressures continued to moderate, contributing favorably to our net interest margin and profitability.
Current report
The baseline scenario maintains a mostly optimistic tenor with respect to economic outcomes, including the assumption that the economic impact of the conflict in the Middle East will be short-lived. Key variables underlying the March 2026 baseline forecast include the following: (1) the worst of the hostilities in the conflict in the Middle East will be over by early April, prompting oil prices to quickly recede and to normalize by early 2027; (2) the effective tariff rate of about 11% is expected to remain for the duration of the current administration before eventually falling back to about 2% late in the decade or early next; (3) the Federal Reserve will issue interest rate cuts of 25 basis points each in June and September 2026, returning the benchmark rate to a level that neither restrains nor supports growth; (4) the combination of weak labor demand and softer growth in labor supply will remain a significant headwind to job gains, but these factors create a neutral effect on the unemployment rate, which will remain flat at around 4.5% in the near term; (5) GDP growth is forecasted to increase to 2.8% in 2026 and then slow to 1.8% in 2027 and 2.0% in 2028; (6) the 10-year U.S. Treasury yield is forecasted to average 4.2% in the first quarter of 2026 and remain near that level through the end of the decade due to elevated inflation and fiscal uncertainty.
Current report
Highlights of the First Quarter 2026
Current report
Net income of $47.4 million, or $0.57 per diluted share, reflective of a $98.6 million net loss on restructuring the available for sale securities portfolio
Current report
Our results for the first quarter of 2026 reflect a strong start to the year. We continued to deploy capital with the repurchase 1.4 million shares of our common stock, a restructure of our securities portfolio, and an 11% increase the quarterly common stock dividend. Net interest margin expanded despite a declining interest rate environment, due in part to the securities portfolio restructuring. Fee income excluding the securities loss was steady and our expenses were well controlled. Credit metrics remained stable and we maintained a solid allowance for credit losses coverage of 1.43%. We welcomed 27 net new bankers and opened a new financial center as we continue to carry out our organic growth plan while maintaining operational efficiency and proactively managing capital to enhance shareholder value.
Current report
The $2.9 million increase in net interest income (te) from the fourth quarter of 2025 was driven by both a lower cost of funds and an increase in the securities yield outpacing a decline in loan yields, and growth in average loan balances. Net interest income (te) for the first quarter of 2026 is also net of a $4.1 million reduction as a result of two fewer accrual days. Interest income (te) decreased $6.4 million, reflecting the impact of two fewer accrual days and a decline in loan yields following the two interest rate cuts in the fourth quarter of 2025, partially offset by an increase in the yield on the securities portfolio as a result of the portfolio restructuring completed in January 2026 and growth in the loan portfolio. Interest expense decreased $9.3 million and was primarily rate driven, as reductions in promotional pricing on both interest-bearing transaction accounts and retail time deposits resulted in a lower cost of funds. The decrease in interest expense is also reflective of two fewer accrual days. The net interest margin for the first quarter of
Current report
2026 was 3.55%, up 7 bps from the fourth quarter of 2025, driven primarily by higher securities yields as a result of the bond portfolio restructuring, up 25 bps, and lower cost of funds, down 9 bps, partially offset by lower loan yields, down 13 bps, and also by growth in average loan volume.
Current report
The $14.9 million increase in net interest income (te) from the first quarter of 2025 was driven primarily by an increase in the securities yield as a result of the portfolio restructuring and other reinvestments, and is also reflective of growth in the loan portfolio, a favorable shift in the mix of interest-bearing deposits, and deposit betas outpacing loan betas. These favorable changes were partially offset by a $717.0 million increase in average other short-term borrowings to fund loan growth. Interest income (te) increased $5.7 million despite the falling interest rate environment. The improvement was driven by an increase in securities yields due to the portfolio restructure, and by loan growth, as average loans were up $897.4 million compared to the same quarter last year; these were partially offset by declines in loan yields and short-term investments yield and volume. The decrease in interest expense of $9.2 million was largely rate driven but also reflective of a favorable shift in the mix of interest-bearing deposits, partially offset by the previously mentioned increase in other short-term borrowings. The net interest margin for the first quarter of 2026 was up 12 bps from the first quarter of 2025, largely attributable to the impact of higher securities yields, up 45 bps, a lower cost of funds, down 15 bps, partially offset by a decrease in loan yields of 22 bps.
Current report
$0.1 million in the fourth quarter of 2025 and net charge-offs of $10.3 million and a reserve build of $0.2 million in the first quarter of 2025, reflecting relatively stable results across the comparative periods.
Current report
Noninterest income totaled $7.5 million for the first quarter of 2026, down $99.6 million from the fourth quarter of 2025 and $87.3 million from the first quarter of 2025. Included in noninterest income in the first quarter of 2026 was a $98.6 million loss identified as a supplemental disclosure item attributable to the restructuring of the available for sales securities portfolio. Excluding the supplemental disclosure item, noninterest income totaled $106.1 million, down $1.1 million, or 1%, from the fourth quarter of 2025 and up $11.3 million, or 12%, from the first quarter of 2025. A detailed discussion of noninterest income variances follows.
Current report
Supplemental Disclosure Items Included in Noninterest Income
Current report
Net loss on securities transactions totaled $98.6 million for the first quarter of 2026, compared to a net loss of less than $0.1 million in the fourth quarter of 2025 and no gain or loss in the first quarter of 2025. The net loss in the current period resulted from the sale of $1.5 billion of available for sale securities and reflects a strategic decision to restructure the portfolio to enhance future net interest income through deployment of the proceeds into higher-yielding instruments.
Current report
Noninterest expense for the first quarter of 2026 was $220.7 million, up $2.9 million, or 1%, from the fourth quarter of 2025, and $15.7 million, or 8%, from the first quarter of 2025. The increase from the fourth quarter of 2025 was largely driven by seasonal increases in payroll taxes and benefits, and the increase from the same period in 2025 is attributable to most expense categories. A more detailed discussion of noninterest expense variances follows.
Current report
$1.3 million, or 7%, from the fourth quarter of 2025, and $0.4 million, or 2%, from the first quarter of 2025. The linked quarter decrease was driven primarily by a decline in facility repair and maintenance expenses. The year over year decrease was driven by decreases in facility repair and maintenance and property tax expenses that were partially offset by an increase in leased facility expense.
Current report
The effective income tax rate for the first quarter of 2026 was 19.3% compared to 20.7% in the fourth quarter of 2025 and 19.9% in the first quarter of 2025. The linked-quarter decrease in the effective tax rate is due primarily to a $1.4 million income tax benefit in the first quarter of 2026 related to various discrete items, such as share-based compensation. The first quarter of 2026 effective income tax is lower than the first quarter of 2025 primarily due to lower forecasted annual pre-tax earnings as result of the first quarter 2026 securities portfolio restructuring.
Current report
On March 19, 2026, the federal bank regulatory agencies requested comment on three proposals to modernize the regulatory capital framework for banks of all sizes. The proposals are intended to streamline capital requirements and better align regulatory capital with risk while maintaining the safety and soundness of the banking system. While the agencies anticipate that the amount of overall capital in the banking system will modestly decrease as a result of these proposals, they expect capital levels would still be substantially higher than they were before the financial crisis. In aggregate, the proposals would modestly reduce capital requirements for large banks and moderately reduce requirements for smaller banks, reflecting their more traditional lending activities.
Current report
Comments on all three proposals are due by June 18, 2026, and there is not yet a proposed timeline for issuance of a final rule or an implementation date. The Company is in process of evaluating the proposed rules and, based on a preliminary estimate, expects the rules as proposed would have a favorable impact on our capital levels.
Current report
In January 2026, we executed a restructuring of the available for sale securities portfolio to enhance net interest income whereby we sold securities with an amortized cost of $1.5 billion and an average yield of 2.49% and reinvested the $1.4 billion of proceeds with the purchase of securities with an average yield of 4.35%.
Current report
Total deposits were $29.1 billion at March 31, 2026, down $197.6 million, or 1%, from December 31, 2025 driven by typical seasonal movement in public funds deposits and retail time deposit maturities that were partially offset by growth in transaction and savings deposits. Average deposits for the first quarter of 2026 were $28.8 billion, up $18.2 million, or less than 1%, from the fourth quarter of 2025.
Current report
Long-term debt totaled $193.8 million at March 31, 2026, down $5.6 million, or 3%, from December 31, 2025, due to tax credit entity activity.
Removed paragraphs (30)
Previous report
the impact of the current federal government shutdown, and uncertainties stemming for the duration of this, or other future federal shutdowns;
Previous report
Acquisition
Previous report
On May 2, 2025, we completed the acquisition of Sabal Trust Company (“Sabal”). Based in St. Petersburg, Florida, with three additional locations in the Central Florida region, Sabal was the largest independent, employee-owned non-depository trust company in Florida. The transaction added assets under management and administration of approximately $3 billion to our existing trust and asset management business and provides the opportunity to develop relationships in other private, wholesale and retail services in high-growth markets.
Previous report
For additional information on this transaction, refer to Note 2 – "Acquisition" in the notes to our consolidated financial statements included elsewhere in this document.
Previous report
The economic landscape presented an increasingly complex picture in the third quarter of 2025, with marked divergence between financial markets and the broader economy. While the turbulence of the tariff rollout has moderated, the reality of these levies continues to disrupt U.S. and global growth, with tariff rates averaging around 15% compared to approximately 2.5% in recent years. The burden of tariffs on global supply chains, with exporters and importers struggling to absorb costs and increasingly passing them on to consumers, has reversed some of the progress made in curbing inflation in recent years. Unemployment statistics, where available, remained fairly positive and showed only modest migration to a range of 4.2% to 4.3% during the period, though continued slowing in job growth and disruptions in the labor market have dampened the outlook. Based on the most recent Federal Reserve estimate, real gross domestic product (GDP) grew 4.0% on an annualized basis in the third quarter of 2025, buoyed by consumer spending that may not be sustainable in the near term as reports indicate steadily declining consumer confidence. Despite tariff escalations, mounting concerns about a slowing economy, and the then-imminent government shutdown, financial markets continued the rebound that began in the second quarter, with equity markets ending the quarter at all-time highs.
Previous report
While the Federal Reserve maintains committed to its dual mandate of maximum employment and price stability, it has acknowledged the challenge of current economic situation. The resumption of interest rate easement in September amid increasing inflation indicates deeper concerns about the downside risks of a softening labor market. Delays in collection and reporting of economic data as a result of the ongoing government shutdown may further impact future policy decisions.
Previous report
Within the financial services industry, economic uncertainty and prolonged elevated interest rates continue to present headwinds in terms of loan demand and deposit behavior. Despite these pressures, we experienced another quarter of loan growth, though to a lesser degree than the prior quarter, and our net interest margin was unchanged.
Previous report
Key assumptions within the September 2025 baseline forecast include the following: (1) The effective tariff rate is expected to continue to increase in the fourth quarter of 2025 and the first quarter of 2026 to an average of around 15%, and is expected to remain for the entirety of the current administration; (2) the Federal Reserve will issue rate cuts of 25 basis points each in September and December 2025, with further gradual reductions in 2026 until the benchmark rate reaches 3%; (3) job growth continues to slow and, as a result, the current unemployment rate of 4.3% will trend slowly higher and peak at 4.8% in the fourth quarter of 2026; (4) GDP will display modest annual below-trend growth in the coming years of 1.8% in 2025, 1.5% in 2026, and 1.8% in 2027; and, (5) the 10-year U.S. Treasury yield is forecasted to average 4.3% in 2025 and hover around its current level through the end of the decade because of elevated inflation and fiscal uncertainty.
Previous report
Highlights of the Third Quarter 2025
Previous report
Our results for the third quarter of 2025 again reflect strong performance and profitability. Adjusted pre-provision net revenue and return on assets grew, efficiency ratio improved, credit quality remained stable and net interest margin was unchanged despite a declining interest rate environment. Solid earnings performance drove growth in our capital ratios, even as we continued to deploy capital to fund organic balance sheet growth and repurchase 662,500 shares of our common stock. We remain committed to executing on our organic growth plan while maintaining operational efficiency and proactively managing capital to enhance shareholder value.
Previous report
The $2.9 million increase in net interest income (te) from the second quarter of 2025 was driven by an increase in interest income (te) of $6.5 million that was partially offset by an increase in interest expense of $3.6 million. The increase in interest income (te) was driven primarily by an additional accrual day, growth in average earning assets and a favorable change in the mix therein, and higher yields on the securities portfolio. The increase in interest expense was largely driven by an increase in average short-term borrowings and the impact of an additional accrual day, partially offset by a decrease in the cost of interest-bearing deposits and a favorable change in the mix therein.
Previous report
The net interest margin for the third quarter of 2025 was 3.49%, unchanged from the second quarter of 2025, as higher securities yields (+2 bps) and a favorable change in earning asset mix with higher average loans (+2 bps) were offset by an unfavorable change in funding mix as the volume of higher-cost short-term borrowings increased (-4 bps).
Previous report
The $17.8 million increase in net interest income (te) for the nine months ended September 30, 2025 from the same period in 2024 was largely interest rate driven, as the decline in prevailing rates on interest-bearing liabilities and an increase in securities yields outpaced lower yields on loans. The increase is also reflective of favorable changes in average balance and mix within interest-bearing liabilities, partially offset by a decline in average loans and the net impact of one less accrual day. Interest income (te) decreased $72.3 million, driven largely by a decrease in both loan yields and average balances, partially offset by increases in securities yields and average balances. Interest income (te) from securities for the nine months ended September 30, 2025 also includes $3.7 million associated with certain fair value hedges that became effective during the year. Interest expense decreased $90.0 million, driven largely by a decline in both the average balance of interest-bearing deposits and the interest rates paid on those deposits. The decrease in average interest-bearing deposits includes the impact of the elimination of brokered time deposits and a decline in retail time deposits, a portion of which shifted to lower-cost transaction and savings deposits.
Previous report
The net interest margin for the nine months ended September 30, 2025 was 3.47%, up 11 bps from 3.36% for the same period in 2024. The increase in the net interest margin also reflects the decrease in the cost of funds outpacing the decline in the yield on earning assets. The rate on interest-bearing liabilities was down 55 bps from 2024, primarily driven by the lower interest rate environment, promotional rate reductions, the elimination of brokered time deposits and a more favorable mix of retail deposits. The yield on average earning assets was down 25 bps, largely the result of a 36 bp decline in the loan yield, reflective of market interest rate movement, that was partially offset by a 24 bp increase in securities yields, as cash flows from maturing securities were reinvested into instruments with higher yields, coupled with a 6 bp favorable impact from fair value hedge effectiveness described above.
Previous report
(d)
Previous report
Included in interest income is net purchase accounting accretion of $0.5 million for the three months ended September 30, 2024. There was no net purchase accounting accretion in 2025.
Previous report
(a)
Previous report
(b)
Previous report
Includes nonaccrual loans.
Previous report
(c)
Previous report
(d)
Previous report
Included in interest income is net purchase accounting accretion of $1.6 million nine months ended September 30, 2024. There was no net purchase accounting accretion in 2025.
Previous report
We recorded a provision for credit losses of $38.0 million for the nine months ended September 30, 2025, compared to $40.3 million for the same period in 2024. The provision for credit losses for the nine months ended September 30, 2025 included net charge-offs of $39.4 million and a reserve release of $1.4 million, compared to net charge-offs of $34.3 million and a reserve build of $6.0 million in the same period in 2024. Net charge-offs for the nine months ended September 30, 2025 were 0.23% of average loans, comprised of net charge-offs of $29.2 million in the commercial portfolio, $10.1 million in the consumer portfolio and $0.1 million in the residential mortgage portfolio. Net charge-offs for the nine months ended September 30, 2024 were 0.19% of average loans, comprised of net charge-offs of $23.8 million in the commercial portfolio and $10.7 million in the consumer portfolio, partially offset by net recoveries of $0.2 million in the residential mortgage portfolio.
Previous report
Noninterest income totaled $106.0 million for the third quarter of 2025, up $7.5 million, or 8%, from the second quarter of 2025. The increase in noninterest income from the second quarter of 2025 was largely driven by investment and annuity fees and insurance commissions, a full quarter's impact from the Sabal Trust Company (Sabal) acquisition, service charges on deposit accounts, and net gains on sales of assets. For the nine months ended September 30, 2025, noninterest income totaled $299.3 million, up $26.4 million, or 10%, from the same period in 2024. The increase from the same period in 2024 was largely driven by trust fees, reflecting the May 2025 acquisition of Sabal, income from derivatives, service charges on deposits, investment and annuity fees and insurance commissions, income from bank-owned life insurance, and income from secondary mortgage market operations, partially offset by declines in other miscellaneous, and net gains on sales of assets. A more detailed discussion of these and other noninterest income variances follows.
Previous report
Noninterest expense for the third quarter of 2025 was $212.8 million, down $3.2 million, or 1%, from the second quarter of 2025. Included in noninterest expense for the second quarter of 2025 were supplemental disclosure items totaling $5.9 million attributable to costs associated with the acquisition of Sabal. Excluding the supplemental disclosure items, noninterest expense for the third quarter of 2025 was up $2.7 million, or 1%, from the second quarter of 2025, largely driven by an increase in personnel expense that was partially offset by decreases in other real estate and foreclosed assets expense and professional services expense. For the nine months ended September 30, 2025, noninterest expense totaled $633.8 million, up $16.2 million, or 3%, from the same period in 2024. The nine months ended September 30, 2025 included the $5.9 million Sabal acquisition supplemental disclosure items as described above, and the nine months ended September 30, 2024 included a $3.8 million supplemental disclosure item attributable to an FDIC special assessment. Excluding the impact of the supplemental disclosure items in both periods, noninterest expense was up $14.1 million, or 2%, from the same period in 2024, largely attributable to increases in professional services expense, other real estate and foreclosed assets expense, data processing expense and business development expenses, partially offset by decreases in personnel expense and deposit insurance and regulatory fees. A more detailed discussion of these and other noninterest expense variances follows.
Previous report
Deposit insurance and regulatory fees for the third quarter of 2025 totaled $4.7 million, down $0.2 million, or 3%, from the second quarter of 2024. For the nine months ended September 30, 2025, deposit insurance and regulatory fees totaled $14.5 million, down $5.9 million, or 29%, from the same period in 2024. Included in the nine months ended September 30, 2024 was a supplemental disclosure item of $3.8 million attributable to a more sizable adjustment to the special assessment by the FDIC to cover losses incurred under the systemic risk exception following the failure of two large regional banks. Excluding the impact of the supplemental disclosure item, deposit insurance and regulatory fees were down $2.1 million, or 13%, primarily attributable to changes in our risk-based assessment calculation as well as less significant quarterly adjustments to the special assessment based on quarterly updates from the FDIC.
Previous report
The effective income tax rate for the third quarter of 2025 was 20.5% compared to 21.5% in the second quarter of 2025. The effective income tax rate for the nine months ended September 30, 2025 was 20.6% compared to 20.0% for the same period in 2024.
Previous report
On July 4, 2025, “An Act to Provide for Reconciliation Pursuant to Title II of H. Con. Res. 14,” more commonly referred to as the “One Big Beautiful Bill Act” (OBBBA) was signed into law. OBBBA enacted broad changes to the domestic and international taxation arena by extending many expiring Tax Cuts and Jobs Act tax provisions among other individual and business tax relief measures, along with funding national defense and border security, cutting certain federal spending programs, phasing out certain renewable energy credits created by the Inflation Reduction Act, and raising the national debt ceiling, among other things. Based on information available to date, we do not anticipate the OBBBA will have a material impact on the Company’s consolidated financial position or results of operations, absent any further changes in law.
Previous report
Total deposits were $28.7 billion at September 30, 2025, down $386.9 million, or 1%, from June 30, 2025 and $833.1 million, or 3%, from December 31, 2024. Average deposits for the third quarter of 2025 were $28.5 billion, down $157.8 million, or 1%, from the second quarter of 2025.
Previous report
Long-term debt totaled $210.7 million at September 30, 2025, virtually unchanged from both June 30, 2025 and December 31, 2024.
Reworded paragraphs (78)
Previous wording
The objective of this discussion and analysis is to provide material information relevant to the assessment of the financial condition and results of operations of Hancock Whitney Corporation and its subsidiaries during the nine months ended September 30, 2025 and selected comparable prior periods, including an evaluation of the amounts and certainty of cash flows from operations and outside sources. This discussion and analysis is intended to highlight and supplement financial and operating data and information presented elsewhere in this report, including the consolidated financial statements and related notes. The discussion contains forward-looking statements within the meaning and protections of section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are subject to risks and uncertainties. Should one or more of these risks or uncertainties materialize, our actual results may differ from those expressed or implied by the forward-looking statements. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this Quarterly Report on Form 10-Q and in other reports or documents that we file from time to time with the SEC include, but are not limited to, the following:
Current wording
The objective of this discussion and analysis is to provide material information relevant to the assessment of the financial condition and results of operations of Hancock Whitney Corporation and its subsidiaries during the three months ended March 31, 2026 and selected comparable prior periods, including an evaluation of the amounts and certainty of cash flows from operations and outside sources. This discussion and analysis is intended to highlight and supplement financial and operating data and information presented elsewhere in this report, including the consolidated financial statements and related notes. The discussion contains forward-looking statements within the meaning and protections of section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are subject to risks and uncertainties. Should one or more of these risks or uncertainties materialize, our actual results may differ from those expressed or implied by the forward-looking statements. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this Quarterly Report on Form 10-Q and in other reports or documents that we file from time to time with the SEC include, but are not limited to, the following:
Previous wording
uncertainties surrounding geopolitical events, trade policy, taxation policy, and monetary policy which continue to impact the outlook for future economic growth; impacts from current and/or future imposition of tariffs by the United States against other nations; consideration of responsive actions by these nations, including retaliatory tariffs, or the expansion of import fees and tariffs among a larger group of nations is bringing greater ambiguity to the outlook for future economic growth, including reduced consumer spending, lower economic growth or recession, reduced demand for U.S. exports, disruptions to supply chains, impacts from decreased international tourism, decreased demand for banking products and services, and negative credit quality developments arising from the foregoing or other factors;
Current wording
uncertainties surrounding geopolitical conflict, trade policy, taxation policy, and monetary policy, which continue to impact the outlook for future economic growth; a sustained increase in commodity prices; impacts from current and/or future imposition of tariffs by the United States against other nations; consideration of responsive actions by these nations, including retaliatory tariffs, or the expansion of import fees and tariffs among a larger group of nations is bringing greater ambiguity to the outlook for future economic growth, including reduced consumer spending, lower economic growth or recession, reduced demand for U.S. exports, disruptions to supply chains, impacts from decreased international tourism, decreased demand for banking products and services, and negative credit quality developments arising from the foregoing or other factors;
Previous wording
the impact of current (including Sabal Trust Company) and future business combinations on our performance and financial condition including our ability to successfully integrate the businesses;
Current wording
the impact of business combinations on our performance and financial condition including our ability to successfully integrate the businesses;
Previous wording
The S-2 scenario presents a downside alternative to the baseline. The S-2 scenario assumes the impacts of the current administration's tariff and immigration plans and actions on the economy are worse than expected, causing inflation to rise in the fourth quarter of 2025. The effective tariff rate is forecasted to increase to 22% and remain elevated through the end of 2028. Further, elevated interest rates weaken credit-sensitive spending more than anticipated and there is longer and farther-reaching disturbance from geopolitical conflict. The scenario assumes the unemployment rate will rise considerably to a peak of 7.2% in the third quarter of 2026 and remain elevated before returning to full employment in late 2028. As a result of these pressures, the U.S. falls into a mild recession beginning in the fourth quarter of 2025 that lasts for three quarters, with the stock market contracting 23% and a peak-to-trough decline in GDP of 1%. Despite the onset of the recession, rising inflation prompts the Federal Reserve to raise its benchmark interest rate in the fourth quarter of 2025 before resuming easement in the first quarter of 2026.
Current wording
The S-2 scenario presents a downside alternative to the baseline. The S-2 scenario assumes the conflict in the Middle East persists longer than what is forecasted in baseline scenario, causing oil prices to rise higher. The effective tariff rate increases to about 15% and remains elevated through the end of 2028. The impacts on the economy from tariffs, deportations and elevated oil prices are worse than expected, causing inflation to rise. Further, there is longer and farther-reaching disturbance from other geopolitical conflict. The scenario assumes the unemployment rate will rise considerably to a peak of 7.3% in the first quarter of 2027 and remain elevated before returning to full employment in late 2028. The combination of higher oil prices, rising inflation, tariffs, still elevated interest rates and reduced credit availability causes the U.S. economy to fall into a mild recession beginning in the second quarter of 2026 that lasts for three quarters, with a peak-to-trough decline in GDP of 1% and the stock market contracting 22%. The recession and rising inflation prompts the Federal Reserve to lower its benchmark interest rate only slightly below what is forecasted in the baseline before making more significant cuts as inflation subsides.
Previous wording
Management has deemed certain assumptions underlying the downside S-2 scenario to be as likely to occur in the near term as those underlying the baseline scenario, and, as such, the baseline scenario and the S-2 scenario were each given probability weightings of 50% in the calculation of our allowance for credit losses calculation at September 30, 2025. The weightings are consistent with those applied in the calculation of allowance for credit losses at June 30, 2025.
Current wording
Management has deemed certain assumptions underlying the downside S-2 scenario to have a higher likelihood to occur in the near term as those underlying the baseline scenario, and, as such, the S-2 and baseline scenarios were given probability weightings of 60% and 40%, respectively, in the calculation of our allowance for credit losses calculation at March 31, 2026. The weighting of scenarios has changed from the December 31, 2025 calculation of allowance for credit losses, where the baseline scenario and the downside S-2 scenario were each weighted at 50%. The change in weighting does not represent a significant shift in our outlook, but rather is a function of an optimistic shift in the assumptions underlying the baseline forecast.
Previous wording
Recent and expected changes in fiscal and other policies with the current administration, including the ongoing government shutdown, create significant uncertainty as to the impact on the U.S and global economies. The effects of continued elevated inflation, and the Federal Reserve’s actions to counter these effects and respond to other economic concerns, could reduce economic growth in the near term. The full extent of the impact of these and other influential factors are uncertain and may have an adverse effect on the U.S. economy, including the possibility of an economic recession or slower growth in the near or midterm.
Current wording
Rapidly evolving changes in geopolitical, fiscal and other policies have created heightened uncertainty as to the impact on the U.S. and global economies. The duration of the conflict in the Middle East is expected to play a pivotal role in economic conditions. The impact of continued inflation, a softening labor market and the Federal Reserve's actions to counter those effects, as well as to respond to other economic concerns, could reduce economic growth in the near term. The full extent of the impact of the conflict in the Middle East and other influential factors are uncertain and may have an adverse effect on the U.S. economy, including the possibility of an economic recession or slower growth in the near or midterm.
Previous wording
We reported net income for the third quarter of 2025 of $127.5 million, or $1.49 per diluted common share, compared to $113.5 million, or $1.32 per diluted common share, in the second quarter of 2025 and $115.6 million, or $1.33 per diluted common share, in the third quarter of 2024. The second quarter of 2025 includes $5.9 million, or $0.05 per diluted share, of supplemental disclosure items related to the costs associated with the acquisition of Sabal Trust Company. There were no supplemental disclosure items in the third quarters of 2025 or 2024.
Current wording
We reported net income for the first quarter of 2026 of $47.4 million, or $0.57 per diluted common share, compared to $125.6 million, or $1.49 per diluted common share, in the fourth quarter of 2025 and $119.5 million, or $1.38 per diluted common share, in the first quarter of 2025. The first quarter of 2026 includes a supplemental disclosure item attributable to a net loss on the restructuring of the available for sale securities portfolio totaling $98.6 million pre-tax, or $0.95 per diluted share after tax. There were no supplemental disclosure items in the fourth or first quarters of 2025.
Previous wording
Third quarter 2025 results compared to second quarter 2025:
Current wording
First quarter 2026 results compared to fourth quarter 2025:
Previous wording
Adjusted pre-provision net revenue, a non-GAAP measure, totaled $175.6 million, up $7.6 million, or 5%
Current wording
Adjusted pre-provision net revenue, a non-GAAP measure, totaled $172.9 million, down $1.1 million, or 1%
Previous wording
Period-end loans totaled $23.6 billion, up $134.8 million, or 1%
Current wording
Period-end loans totaled $24.0 billion, up $33.4 million, or less than 1%
Previous wording
Period-end deposits totaled $28.7 billion, down $386.9 million, or 1%
Current wording
Period-end deposits totaled $29.1 billion, down $197.6 million, or 1%
Previous wording
Criticized loans continued to moderate, while total nonaccrual loans increased; annualized net charge-offs to average loans was 0.19%, down from 0.31%
Current wording
Criticized commercial loans decreased while total nonaccrual loans increased; annualized net charge-offs to average loans was 0.19%, down from 0.22%
Previous wording
Allowance for credit losses coverage to total loans remains solid at 1.45%, unchanged from June 30, 2025
Current wording
Allowance for credit losses coverage to total loans remains solid at 1.43%, unchanged from December 31, 2025
Previous wording
Net interest margin of 3.49%, unchanged from prior quarter
Current wording
Net interest margin of 3.55%, up 7 bps from prior quarter
Previous wording
Tangible common equity ratio of 10.01%, up 17 bps; common equity tier 1 ratio of 14.09%, up 12 bps; and total risk-based capital ratio of 15.92%, up 10 bps
Current wording
Tangible common equity ratio of 9.93%, down 13 bps; common equity tier 1 ratio of 13.29%, down 36 bps; and total risk-based capital ratio of 15.10%, down 35 bps; reflecting capital deployment to enhance shareholder value
Previous wording
Efficiency ratio, a non-GAAP measure, improved to 54.10%, compared to 54.91%
Current wording
Efficiency ratio, a non-GAAP measure, was 55.43%, compared to 54.93%
Previous wording
Net interest income (te) for the third quarter of 2025 totaled $282.3 million, up $2.9 million, or 1%, compared to the second quarter of 2025, and $834.5 million for nine months ended September 30, 2025, up $17.8 million, or 2%, compared to the same period in 2024.
Current wording
Net interest income (te) for the first quarter of 2026 totaled $287.6 million, up $2.9 million, or 1%, compared to the fourth quarter of 2025, and up $14.9 million, or 5%, compared to the first quarter of 2025.
Previous wording
During the third quarter of 2025, we recorded a provision for credit losses of $12.7 million, compared to $14.9 million in the second quarter of 2025. The provision for credit loss in the third quarter of 2025 included net charge-offs of $11.4 million and a reserve build of $1.3 million, compared to net charge-offs of $17.8 million and a reserve release of $2.9 million in the second quarter of 2025.
Current wording
During the first quarter of 2026, we recorded a provision for credit losses of $13.2 million, compared to $13.1 million in the fourth quarter of 2025 and $10.5 million in the first quarter of 2025. The provision for credit loss in the first quarter of 2026 included net charge-offs of $11.1 million and a reserve build of $2.1 million, compared to net charge-offs of $13.0 million and a reserve build of
Previous wording
Annualized net charge-offs as a percentage of average loans in the third quarter of 2025 were 0.19%, down from 0.31%, in the second quarter of 2025. Net charge-offs in the third quarter of 2025 included $7.5 million in the commercial portfolio, $3.8 million in the consumer portfolio and $0.2 million in the residential mortgage portfolio. Net charge-offs in the second quarter of 2025 included $14.7 million in the commercial portfolio, $2.9 million in the consumer portfolio, and $0.2 million in the residential mortgage portfolio.
Current wording
Annualized net charge-offs as a percentage of average loans in the first quarter of 2026 were 0.19%, down from 0.22%, in the fourth quarter of 2025, and up from 0.18% in the first quarter of 2025. Net charge-offs in the first quarter of 2026 included $7.4 million in the commercial portfolio, $3.5 million in the consumer portfolio and $0.2 million in the residential mortgage portfolio. Net charge-offs in the fourth quarter of 2025 included $10.1 million in the commercial portfolio, $3.0 million in the consumer portfolio, partially offset by net recoveries of $0.1 million in the residential mortgage portfolio. Net charge-offs in the first quarter of 2025 included $7.1 million in the commercial portfolio, $3.4 million in the consumer portfolio, partially offset by net recoveries of $0.2 million in the residential mortgage portfolio.
Previous wording
Service charges on deposit accounts include consumer, business, and corporate deposit account servicing fees, as well as nonsufficient funds fees on non-consumer accounts, overdraft and overdraft protection fees, and other customer transaction-related fees. Service charges on deposits totaled $25.2 million for the third quarter of 2025, up $1.0 million, or 4%, from the second quarter of 2025. The linked-quarter increase was driven primarily by consumer overdraft fees. For the nine months ended September 30, 2025, service charges on deposits totaled $73.6 million, up $5.9 million, or 9%, from the same period in 2024. The year-over-year increase was largely attributable to consumer overdraft fees, and analysis fees and overdraft fees on business accounts.
Current wording
Service charges on deposit accounts include consumer, business, and corporate deposit account servicing fees, as well as nonsufficient funds fees on non-consumer accounts, overdraft and overdraft protection fees, and other customer transaction-related fees. Service charges on deposits totaled $25.9 million for the first quarter of 2026, up $0.3 million, or 1%, from the fourth quarter of 2025 and $1.8 million, or 7%, from the first quarter of 2025. The linked quarter increase was driven primarily by analysis fees on business accounts, partially offset by a decline in consumer overdraft fees. The year over year increase was driven by consumer overdraft fees and analysis fees on business accounts.
Previous wording
Trust fee income represents revenue generated from a full range of trust services, including asset management and custody services provided to individuals, businesses and institutions. Trust fees totaled $24.2 million for the third quarter of 2025, up $1.5 million, or 6%, from the second quarter of 2025. The linked-quarter increase reflects a full quarter's impact from the May 2025 acquisition of Sabal. Trust fees for the nine months ended September 30, 2025 totaled $65.0 million, up $11.4 million, or 21%, from the same period in 2024. The year-over-year increase reflects $9.0 million in personal trust fees as a result of the Sabal acquisition and growth in our legacy personal and corporate trust fees, partially offset by a decline in employee benefits trust revenue.
Current wording
Trust fee income represents revenue generated from a full range of trust services, including asset management and custody services provided to individuals, businesses and institutions. Trust fees totaled $24.6 million for the first quarter of 2026, relatively flat compared to the fourth quarter of 2025 and up $6.6 million, or 36%, from the first quarter of 2025. The year over year increase is mostly attributable to personal trust, including $5.3 million as a result of the May 2, 2025 acquisition of Sabal Trust Company, and reflective of both organic and market value-driven growth in our legacy business.
Previous wording
Bank card and ATM fees include interchange and other income from credit and debit card transactions, fees earned from processing card transactions for merchants, and fees earned from ATM transactions. Bank card and ATM fees totaled $21.8 million for the third quarter of 2025, down $0.2 million, or 1%, from the second quarter of 2025, driven primarily by merchant service fees. For the nine months ended September 30, 2025, bank card and ATM fees totaled $64.5 million, up $0.4 million, or 1%, from the same period in 2024, as increases in purchasing card and debit card processing fees were partially offset by declines in business credit card processing fees and ATM fees.
Current wording
Bank card and ATM fees include interchange and other income from credit and debit card transactions, fees earned from processing card transactions for merchants, and fees earned from ATM transactions. Bank card and ATM fees totaled $22.1 million for the first quarter of 2026, up $0.5 million, or 2%, from the fourth quarter of 2025 and $1.4 million, or 7%, from the first quarter of 2025. The linked quarter increase was driven primarily by merchant service fees and ATM fees. The year over year increase is mostly attributable to interchange fees, due in-part to card focused marketing campaigns, and ATM fees, reflecting a market adjustment on certain fees.
Previous wording
Investment and annuity fees and insurance commissions, which include both fees earned from sales of annuity and insurance products, as well as managed account fees, totaled $14.5 million, up $3.9 million, or 37%, from the second quarter of 2025, largely attributable to strong annuity sales and an increase in fixed income trading transactions driven by favorable market conditions. The linked-quarter increase is also reflective of an increase in investment management and corporate underwriting fees. For the nine months ended September 30, 2025, investment and annuity fees and insurance commissions totaled $36.5 million, up $4.0 million, or 12%, from the same period in 2024, largely attributable to increases in investment management fees and fixed income trading fees. The year-over-year increase also reflects increases in annuity fees and corporate underwriting fees.
Current wording
Investment and annuity fees and insurance commissions includes both fees earned from sales of annuity and insurance products, as well as managed account fees. Investment and annuity fees and insurance commissions totaled $12.6 million for the first quarter of 2026, relatively flat compared to the fourth quarter of 2025, and up $1.2 million, or 10%, from the first quarter of 2025. Linked-quarter, small declines in insurance commissions, annuity sales and underwriting fees were largely offset by an increase in fixed income trading fees. The year over year increase was largely driven by fixed income trading fees and investment management fees, partially offset by declines in annuity sales volume and underwriting fees. Investment and annuity fee income can vary from period to period depending on market conditions, impacting demand for products and services and related fees.
Previous wording
Income from secondary mortgage market operations is comprised of income produced from the origination and sales of residential mortgage loans in the secondary market. We offer a full range of mortgage products to our customers and typically sell longer-term fixed-rate loans while retaining the majority of adjustable-rate loans, as well as loans generated through programs to support customer relationships. Secondary mortgage market operations income will vary based on mortgage application volume, pull through rates, the percentage of loans ultimately sold in the secondary market and the timing of such sales. Income from secondary mortgage market operations was $3.5 million in the third quarter of 2025, down $0.7 million, or 16%, from the second quarter of 2025. The linked-quarter decrease was primarily attributable to a decrease in mortgage loan production. For the nine months ended September 30, 2025, income from secondary mortgage market operations totaled $11.1 million, up $1.3 million, or 13%, from the same period in 2024. The year-over-year increase was primarily attributable to an increase in mortgage loan production, coupled with a higher percentage of loans sold in the secondary market as opposed to being held in our loan portfolio.
Current wording
Income from secondary mortgage market operations is comprised of income produced from the origination and sales of residential mortgage loans in the secondary market. We offer a full range of mortgage products to our customers and typically sell longer-term fixed-rate loans while retaining the majority of adjustable-rate loans, as well as loans generated through programs to support customer relationships. Secondary mortgage market operations income will vary based on mortgage application volume, pull through rates, the percentage of loans ultimately sold in the secondary market and the timing of such sales. Income from secondary mortgage market operations was $3.5 million in the first quarter of 2026, down $0.2 million, or 4%, from the fourth quarter of 2025, and up $0.1 million, or 2%, compared to the first quarter of 2025. The linked quarter decrease was primarily attributable to a decrease in mortgage loan production. Compared to the first quarter of 2025, an increase in mortgage loan production was mostly offset by a lower percentage of loans sold in the secondary market.
Previous wording
Income from bank-owned life insurance (BOLI) is typically generated through insurance benefit proceeds as well as the growth of the cash surrender value of insurance contracts held. Income from BOLI was $5.8 million for the third quarter of 2025, up $0.4 million, or 8%, from the second quarter of 2025. The linked-quarter increase was attributable to a $0.3 million increase in mortality gains and a $0.1 million increase in income associated with changes in cash surrender value. For the nine months ended September 30, 2025, income from BOLI totaled $15.9 million, up $3.6 million, or 29%, from the same period in 2024. The year-over-year increase is attributable to a $2.3 million increase in income associated with changes in cash surrender value and a $1.3 million increase in mortality gains.
Current wording
Income from bank-owned life insurance (BOLI) is typically generated through insurance benefit proceeds as well as the growth of the cash surrender value of insurance contracts held. Income from BOLI was $5.3 million for the first quarter of 2026, down $0.1 million, or 3%, from the fourth quarter of 2025, and up $0.4 million, or 8%, from the first quarter of 2025. The linked quarter decline was driven by a decrease in mortality gains that was partially offset by an increase in income from change in cash surrender value. The year over year increase was driven by an increase in income from change in cash surrender value that was partially offset by a decline in mortality gains.
Previous wording
Credit related fees include fees assessed on letters of credit and unused portions of loan commitments. Credit related fees were $2.9 million for the third quarter of 2025, up $0.2 million, or 7%, from the second quarter of 2025. For the nine months ended September 30, 2025, credit related fees totaled $8.5 million, down $0.7 million, or 8%, from the same period in 2024. The linked-quarter and year-over-year variances were largely driven by unused commitment fees, which are generally a function of credit line utilization.
Current wording
Credit related fees include fees assessed on letters of credit and unused portions of loan commitments. Credit related fees were $2.8 million for the first quarter of 2026, down less than $0.1 million, or 2%, from both the fourth and first quarters of 2025, driven by a decline in unused commitment fees that is a function of line of credit availability and utilization.
Previous wording
Income or loss from customer and other derivatives is largely from our customer interest rate derivative program. Income from customer and other derivatives totaled $1.9 million for the third quarter of 2025, relatively flat when compared to the second quarter of 2025. For the nine months ended September 30, 2025, income from customer and other derivatives totaled $3.6 million compared to a loss of $2.9 million for the same period in 2024. The year-over-year increase was due in part to the 2024 results including a $1.5 million loss related to assumption changes for certain valuation inputs on customer derivatives and $1.2 million of higher losses resulting from assumption changes to the Visa Class B derivative liability. The remaining year-over-year increase is attributable to the customer interest rate derivative program, driven by market conditions. Derivative income can be volatile and is dependent upon the composition of the portfolio, volume and mix of sales and termination activity, and market value adjustments due to market interest rate movement.
Current wording
Income or loss from customer and other derivatives is largely from our customer interest rate derivative program. Income from customer and other derivatives totaled $1.0 million for the first quarter of 2026, down $1.2 million from the fourth quarter of 2025 and up $1.2 million from the first quarter of 2025. The linked quarter decrease was largely attributable to the customer derivative program as a product of volume and mid-term rate movement, as well as a $0.5 million increase in losses resulting from assumption changes to the Visa Class B derivative liability. The year over year increase is also reflective of changes in volume and interest rates and to a $0.2 increase in losses resulting from assumption changes to the Visa Class B derivative liability. Derivative income can be volatile and is dependent upon the composition of the portfolio, volume and mix of sales and termination activity, and market value adjustments due to market interest rate movement.
Previous wording
Net gains on sales of premises, equipment and other assets consist primarily of net revenue earned from sales of excess-bank owned facilities and equipment no longer in use, gains on sales of Small Business Administration (SBA) and other non-residential mortgage loans, and leases and other assets associated with the equipment finance line of business. Net gains on sales of premises, equipment and other assets totaled $1.9 million for the third quarter of 2025, up $0.9 million from the second quarter of 2025, largely driven by gains on sales of leases and SBA loans. For the nine months ended September 30, 2025, net gains on sales of premises, equipment and other assets totaled $4.8 million, down $2.0 million from the same period in 2024, largely driven by a declines in gains on sales of premises totaling $1.6 million, as the comparative period included a $1.5 million gain on the sale of a former branch property, and gains on sales of SBA loans totaling $0.5 million. The level of net gains or losses on sales of these assets in a given reporting period will vary based on a variety of circumstances.
Current wording
Net gains on sales of premises, equipment and other assets consist primarily of net revenue earned from sales of excess-bank owned facilities and equipment no longer in use, gains on sales of Small Business Administration (SBA) and other non-residential mortgage loans, and leases and other assets associated with the equipment finance line of business. Net gains on sales of premises, equipment and other assets totaled $2.0 million for the first quarter of 2026, up $0.7 million from the fourth quarter of 2025, and $0.2 million from the first quarter of 2025. The increase from both comparative periods was largely driven by gains on sales of SBA loans. The level of net gains or losses on sales of these assets in a given reporting period will vary based on a variety of circumstances.
Previous wording
Other miscellaneous income is comprised of various items, including income from investments in small business investment companies (SBIC), dividends on Federal Home Loan Bank (FHLB) stock, and fees from loan syndication and other specialty lines of business. Other miscellaneous income totaled $4.3 million, up $0.5 million, or 15%, from the second quarter of 2025. The linked-quarter increase was largely driven by a $1.8 million increase in syndication fees that was partially offset by a $1.3 million decrease in SBIC income. For the nine months ended September 30, 2025, other miscellaneous income totaled $15.8 million, down $4.2 million, or 21%, from the same period in 2024. The year-over-year decline was largely driven by declines of $5.1 million in dividends on FHLB stock, reflecting a decline in the level of stock owned and the yield, and $1.2 million in SBIC income, partially offset by an increase of $2.9 million in syndication fees. SBIC income and syndication fees will vary from period to period, depending on activity.
Current wording
Other miscellaneous income is comprised of various items, including income from investments in small business investment companies (SBIC), dividends on Federal Home Loan Bank (FHLB) stock, and fees from loan syndication and other specialty lines of business. Other miscellaneous income totaled $6.3 million, down $0.9 million, or 13%, from the fourth quarter of 2025 and $1.4 million, or 18%, from the first quarter of 2025. The linked quarter decrease was largely driven by a $2.6 million decline in income from SBICs that was partly offset by a $1.5 million increase in syndication fees and a $0.3 million increase in dividends on FHLB stock. The year to date decrease was largely driven by a $2.0 million decline in income from SBICs. SBIC income and syndication fees will vary from period to period, depending on activity.
Previous wording
Personnel expense consists of salaries, incentive compensation, long-term incentives, payroll taxes, and other employee benefits such as 401(k), pension, and insurance for medical, life and disability. Personnel expense totaled $122.0 million for the third quarter of 2025, up $5.5 million, or 5%, from the second quarter of 2025. The three months ended June 30, 2025 included $1.4 million of Sabal acquisition costs highlighted as supplemental disclosure items. Excluding these acquisition costs, personnel expense for the third quarter of 2025 was up $6.9 million, or 6%, from the second quarter of 2025. The linked-quarter increase was largely attributable to increases in bonus and incentive compensation, and salary expense as a result of one additional payroll day and an increase in headcount. For the nine months ended September 30, 2025, personnel expense totaled $352.9 million, down $2.8 million, or 1%, from the same period in 2024. Excluding the $1.4 million of acquisition costs, personnel expense for the nine months ended September 30, 2025 was down $4.2 million, or 1%, from the same period in 2024. The year-over-year decline reflects a favorable impact from salary deferrals associated with lending activities and decreases in commissions and incentives expense and in retirement benefits expense, partially offset by increases in salary expense as a result of annual merit increases and an increase in headcount and in bonus and share-based compensation.
Current wording
Personnel expense consists of salaries, incentive compensation, long-term incentives, payroll taxes, and other employee benefits such as 401(k), pension, and insurance for medical, life and disability. Personnel expense totaled $127.1 million for the first quarter of 2026, up $4.6 million, or 4%, from the fourth quarter of 2025 and $12.8 million, or 11%, from the first quarter of 2025. The linked quarter increase was primarily driven by seasonal increases in payroll taxes and certain employee benefits, and also includes increased commissions and incentives, increased headcount and a lesser benefit from salary deferrals associated with lending activities. These factors were partially offset by decreases in bonus and share-based compensation expense and the impact of two fewer payroll days. The year over year increase reflects increases in most components of this category, and reflects both expected annual increases in salary, incentives, bonus and associated benefit costs, and incremental expense associated with increased headcount that includes both Sabal associates and additional hires of revenue-producing associates. Personnel expense associated with ongoing Sabal operations contributed approximately $2.0 million to the variance compared to the first quarter of 2025.
Previous wording
Occupancy and equipment expenses are primarily composed of lease expenses, depreciation, maintenance and repairs, rent, property taxes, and other equipment expenses. Occupancy and equipment expenses totaled $18.2 million for the third quarter of 2025, relatively flat compared to the second quarter of 2025. For the nine months ended September 30, 2025, occupancy and equipment expenses totaled $54.3 million, up $1.0 million, or 2%, from the same period in 2024. The year-over-year increase was largely driven by building and equipment maintenance and leased facility expense that were partially offset by decreases in depreciation and amortization and building insurance costs. Occupancy and equipment expense for the nine months ended September 30, 2025 includes approximately $0.8 million of Sabal operating costs post-merger.
Current wording
Occupancy and equipment expenses are primarily composed of lease expenses, depreciation, maintenance and repairs, rent, property taxes, and other equipment expenses. Occupancy and equipment expenses totaled $17.3 million for the first quarter of 2026, down
Previous wording
Data processing expense includes expenses related to third party technology processing and servicing costs, technology project costs and fees associated with bank card and ATM transactions, and credit card reward expenses. Data processing expense was $30.7 million for the third quarter of 2025, down $2.8 million, or 8%, from the second quarter of 2025. Included in the three months ended June 30, 2025 was $2.0 million of Sabal acquisition costs highlighted as supplemental disclosure items. Excluding these acquisition costs, data processing expense for the third quarter of 2025 was down $0.8 million, or 3%, from the second quarter of 2025, driven largely by a decrease in amortization and maintenance on data processing software and in certain activity-based processing fees and ATM services. For the nine months ended September 30, 2025, data processing expense totaled $95.4 million, up $4.1 million, or 5%, from the same period in 2024. Excluding the $2.0 million of acquisition costs, data processing expense for the nine months ended September 30, 2025 was up $2.2 million, or 2%, from the same period in 2024. The year-over-year increase was largely attributable to increases in certain activity-based fees, including card processing, credit card rewards expense and ATM servicing, and in technology enhancement costs, partially offset by a decrease in amortization and maintenance on data processing software. Data processing expense can vary from period to period, depending on business needs and technology enhancement initiatives.
Current wording
Data processing expense includes expenses related to third party technology processing and servicing costs, technology project costs and fees associated with bank card and ATM transactions, and credit card reward expenses. Data processing expense was $32.8 million for the first quarter of 2026, up $0.9 million, or 3%, from the fourth quarter of 2025, and $1.5 million, or 5%, from the first quarter of 2025. The linked quarter increase was driven primarily by increases in maintenance on bank owned software and third party processing expenses. The year over year increase was largely attributable to increases in certain third party technology processing, licensing and maintenance and also to activity-based fees including card processing and rewards and rebates, partially offset by a decrease in amortization and maintenance on bank owned software. Data processing expense can vary from period to period, depending on business needs and technology enhancement initiatives.
Previous wording
Professional services expense includes accounting and audit, legal, consulting and certain outsourced service expense. Professional services expense for the third quarter of 2025 totaled $13.4 million, down $3.0 million, or 18%, from the second quarter of 2025. Included in the three months ended June 30, 2025 was $1.5 million of Sabal acquisition costs highlighted as supplemental disclosure items. Excluding these acquisition costs, professional services expense for the third quarter of 2025 was down $1.4 million, or 10%, from the second quarter of 2025, primarily attributable to legal fees. For the nine months ended September 30, 2025, professional services expense totaled $42.0 million, up $12.5 million, or 42%, from the same period in 2024. Excluding the $1.5 million of acquisition costs, professional services expense for the nine months ended September 30, 2025 was up $11.0 million, or 37%, from the same period in 2024, largely attributable to costs associated with consulting and other professional services for stand-alone engagements, including process improvement projects, legal fees, and expense for certain outsourced initiatives. Professional services expense may vary from period to period, generally related to the timing of external service needs.
Current wording
Professional services expense includes accounting and audit, legal, consulting and certain outsourced service expense. Professional services expense for the first quarter of 2026 totaled $13.6 million, down $1.5 million, or 10%, from the fourth quarter of 2025, and up $1.4 million, or 11%, from the first quarter of 2025. The linked quarter decrease was mostly attributable to legal fees, consulting expenses and outsourced service expenses. The year over year increase was largely attributable to costs associated with consulting and other professional services associated with stand-alone engagements, including process improvement projects. Professional services expense may vary from period to period, generally related to the timing of external service needs.
Previous wording
The FDIC special assessment expense recorded to date is management's estimate of our portion of the cost attributable to the systemic risk exception based on information from the FDIC. However, the loss estimates resulting from the failures of Silicon Valley Bank and Signature Bank may be subject to further change pending the projected and actual outcome of loss share agreements, joint ventures, and outstanding litigation. The exact amount of losses incurred will not be determined until the FDIC terminates the receiverships of these banks; therefore, the exact exposure to the Company remains unknown.
Current wording
Deposit insurance and regulatory fees for the first quarter of 2026 totaled $5.0 million, up $1.5 million, or 43%, from the fourth quarter of 2025, and relatively flat compared to the first quarter of 2025. The linked quarter increase was primarily driven by an adjustment in the comparative period to the special assessment by the FDIC to cover losses incurred under the systemic risk exception. The FDIC special assessment expense recorded to date is management's estimate of our portion of the cost attributable to the systemic risk exception based on information from the FDIC. However, the loss estimates resulting from the failures of Silicon Valley Bank and Signature Bank may be subject to further change pending the projected and actual outcome of loss share agreements, joint ventures, and outstanding litigation. The exact amount of losses incurred will not be determined until the FDIC terminates the receiverships of these banks; therefore, the exact exposure to the Company remains unknown.
Previous wording
Income from other real estate and foreclosed assets totaled $0.3 million in the third quarter of 2025, compared to net losses of $1.2 million in the second quarter of 2025, driven primarily by a decrease in other real estate valuation expense. For the nine months ended September 30, 2025, net losses from other real estate and foreclosed assets totaled $2.6 million, compared to net gains of $1.7 million for the same period last year. The net losses for the nine months ended September 30, 2025 include increased net expense of $2.5 million attributable to one commercial property that was sold during the third quarter of 2025. The level of net income or losses associated with holding and maintaining the other real estate owned portfolio can vary depending on sales activity, valuation adjustments and income or expense associated with operating and maintaining foreclosed property. Gains or losses on the sale of other real estate and foreclosed assets may occur periodically and are dependent on the number and type of assets for sale and current market conditions.
Current wording
Other real estate and foreclosed assets expense totaled $0.4 million in the first quarter of 2026, relatively flat compared to the fourth quarter of 2025, and down $1.4 million from the first quarter of 2025. The year over year decrease was largely attributable to a single property that was sold in late 2025. The level of net income or losses associated with holding and maintaining the other real estate owned portfolio can vary depending on sales activity, valuation adjustments and income or expense associated with operating and maintaining foreclosed property. Gains or losses on the sale of other real estate and foreclosed assets may occur periodically and are dependent on the number and type of assets for sale and current market conditions.
Previous wording
Corporate value, franchise and other non-income tax expense for the third quarter of 2025 totaled $4.4 million, down $0.4 million, or 8%, from the second quarter of 2025. The linked-quarter decrease is largely attributable to bank share tax. For the nine months ended September 30, 2025, corporate value, franchise and other non-income tax expense totaled $13.4 million, down $1.4 million, or 10%, from the same period in 2024. The year-over-year decline is largely attributable to decreases in both franchise and bank share taxes. The calculation of bank share tax is based on multiple variables, including average quarterly assets, earnings and stockholders’ equity to determine the taxable assessment value and can vary from period to period.
Current wording
Corporate value, franchise and other non-income tax expense for the first quarter of 2026 totaled $4.4 million, up $0.6 million, or 14%, from the fourth quarter of 2025, and $0.1 million, or 3%, from the first quarter of 2025. The linked quarter increase was largely attributable to bank share tax. The year over year increase was driven by an increase in franchise tax that was mostly offset by an decline in bank share tax. The calculation of bank share tax is based on multiple variables, including average quarterly assets, earnings and stockholders’ equity to determine the taxable assessment value and can vary from period to period.
Previous wording
Business development-related expenses (including advertising, travel, entertainment and contributions) totaled $8.3 million for the third quarter of 2025, relatively flat compared to the second quarter of 2025, as an increase in advertising expense was largely offset by declines in entertainment, contributions and travel expenses. For the nine months ended September 30, 2025, business development-related expenses totaled $24.2 million, up $1.8 million, or 8%, from the same period in 2024, largely driven by sponsorships, travel expense and contributions.
Current wording
Business development-related expenses (including advertising, travel, entertainment and contributions) totaled $10.0 million for the first quarter of 2026, relatively flat compared to the fourth quarter of 2025, and up $2.4 million, or 32%, from the first quarter of 2025. Linked-quarter, decreases in advertising and travel expenses were largely offset by an increase in contributions and sponsorships. The year over year increase was largely attributable to digital media advertising and business development expenses.
Previous wording
All other expenses, excluding amortization of intangibles, is comprised of a variety of other operational expenses and losses, tax credit investment amortization, and net other retirement expense. All other expenses totaled $8.8 million for the third quarter of 2025, down $1.0 million, or 10%, from the second quarter of 2025. Included in the three months ended June 30, 2025 was approximately $1.0 million of Sabal acquisition costs highlighted as supplemental disclosure items. Excluding these acquisition costs, other expenses for the third quarter of 2025 were virtually flat compared to the second quarter of 2025. For the nine months ended September 30, 2025, all other expenses totaled $27.3 million, up $2.4 million, or 10%, from the same period in 2024. Excluding the approximately $1.0 million of acquisition costs, all other expenses were up $1.4 million, or 6%, from the same period in 2024, driven largely by an increase in net other retirement expense and other miscellaneous expenses that were partially offset by a decrease in tax credit investment amortization.
Current wording
All other expenses, excluding amortization of intangibles, is comprised of a variety of other operational expenses and losses, tax credit investment amortization, and net other retirement expense. All other expenses totaled $7.5 million for the first quarter of 2026, down $1.7 million, or 18%, from the fourth quarter of 2025, and $1.2 million, or 14%, from the first quarter of 2025. The decrease from both comparative periods driven largely by a decrease in net other retirement expense as a result of changes in actuarial assumptions for our pension plan.
Previous wording
Based on tax credit investments that have been made to date in 2025, we expect to realize benefits from federal and state tax credits over the next three years totaling $8.2 million, $8.0 million, and $5.5 million in 2026, 2027, and 2028, respectively. We intend to continue making investments in tax credit projects. However, our ability to access new credits will depend upon, among other factors, federal and state tax policies and the level of competition for such credits.
Current wording
Based on tax credit investments that have been made to date in 2026, we expect to realize benefits from federal and state tax credits over the next three years totaling $8.0 million, $5.5 million, and $4.8 million in 2027, 2028, and 2029, respectively. We may continue making investments in tax credit projects; however, our ability to access new credits will depend upon, among other factors, federal and state tax policies and the level of competition for such credits.
Previous wording
Liquidity levels of financial institutions continue to be in heightened focus since the failure of several major regional U.S. banks that experienced large-scale deposit runs in the first half of 2023. At September 30, 2025, our available on and off-balance sheet liquidity of $19.2 billion is well in excess of our estimated uninsured, noncollateralized deposits of approximately $11.2 billion.
Current wording
Liquidity levels of financial institutions continue to be in heightened focus since the failure of several major regional U.S. banks that experienced large-scale deposit runs in early 2023. At March 31, 2026, our available on and off-balance sheet liquidity of $19.5 billion is well in excess of our estimated uninsured, noncollateralized deposits of approximately $11.4 billion.
Showing the first 40 of 78 pairs. Open the source sections for the rest.
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
Net income of $127.5 million, or $1.49 per diluted share
Previous report — wording carried elsewhere
Taxable equivalent (te) amounts were calculated using a federal income tax rate of 21%.
Previous report — wording carried elsewhere
Average securities do not include unrealized holding gains/losses on available for sale securities.
Previous report — wording carried elsewhere
Criticized commercial loans totaled $549.2 million at September 30, 2025, down $20.2 million, or 4%, from $569.3 million at June 30, 2025, and $73.9 million, or 12%, from $623.0 million at December 31, 2024. Criticized loans are defined as those having potential weaknesses that deserve management’s close attention (risk-rated as special mention, substandard and doubtful), including both accruing and nonaccruing loans. The Company routinely assesses the ratings of loans in its portfolio through an established and comprehensive portfolio management process. In addition, the Company often reviews portfolios of loans to determine if there are areas of risk not specifically identified in its loan by loan approach. Criticized commercial loans comprised 3.01% of that portfolio at
Previous report — wording carried elsewhere
$201,200 in our commercial and small business lines (excluding public funds), $118,900 in our wealth management business line, and $18,000 in our consumer business line.