Securities portfolio restructuring completed in January 2026 (recognized as a $98.6M pre-tax supplemental loss in Q1 2026): sold $1.5B of AFS securities at a 2.49% average yield and reinvested $1.4B proceeds at a 4.35% average yield. The full-quarter impact was visible in Q2 2026, contributing to a 12 bp increase in securities portfolio yield and a 7 bp NIM lift; management projects ~$23.8M annual NII contribution (~$0.23/diluted share) with a ~50-month payback on the pre-tax loss. Q2 NIM (te) rose to 3.56%, up 1 bp sequentially, with the securities yield gain offsetting a 2 bp decline in loan yields and a 26 bp increase in borrowing costs.
Subsequent to quarter-end, the company completed its acquisition of OFB Bancshares, Inc. (parent of One Florida Bank) on August 1, 2026 for approximately $377.6 million in total cash consideration. One Florida Bank operated six financial centers (five in the greater Orlando area, one in the Florida Panhandle) and had $2.1B total assets, $1.7B loans, and $1.8B deposits at June 30, 2026. The acquisition establishes a significant presence in the Orlando market and is expected to be immediately accretive to EPS exclusive of one-time costs; full integration and system conversion are targeted for Q4 2026. Purchase accounting was incomplete at filing date.
Period-end loans grew $588.3M (2%) QoQ to $24.6B and deposits grew $547.6M (2%) QoQ to $29.6B, reflecting what management described as robust loan production and continued organic growth plan execution, including a net 15 new banker hires in Q2 (42 YTD). Growth was broad-based: C&I up 2% QoQ, CRE income-producing up 5%, construction up 6%, and interest-bearing transaction/savings deposits up 6% (partly driven by promotional money market offerings). Core deposits rose to 95.50% of total; there were no brokered deposits. FHLB borrowings increased to $950M from $700M a quarter earlier to fund loan growth.
Credit quality remained stable: nonaccrual loans were essentially flat at $113.7M (0.46% of loans), criticized commercial loans declined 6% QoQ to $492.0M (2.55% of the commercial portfolio), and annualized net charge-offs eased to 0.16% of average loans from 0.19% in Q1. Total ACL coverage was 1.42%. Management shifted the ACL scenario probability weighting from 40/60 (Moody's baseline / S-2 mild recession) at March 31 to 50/50 at June 30, citing revised baseline assumptions that now incorporate U.S.–Iran conflict risks; management stated this does not represent a significant change in overall credit outlook. The S-2 scenario envisions a mild recession beginning Q3 2026 lasting three quarters, with unemployment peaking at 7.3% in Q2 2027.
The company continued aggressive capital return: it repurchased 712,966 shares in Q2 at an average price of $68.31 (inclusive of commissions), bringing YTD repurchases to 2.1M shares (approximately $144.5M) under the program authorized in December 2025 for up to 4.1M shares through December 31, 2026. The quarterly dividend was raised to $0.50 per share (from $0.45 a year earlier). CET1 ratio was 13.19% and tangible common equity ratio was 9.78% at June 30, both modestly lower than year-end due to buybacks and asset growth. Separately, federal regulators had requested public comment (due June 18, 2026) on three proposals to modernize bank capital requirements; the company preliminarily expects the proposals would have a favorable impact on its capital levels.
(Filed on May 7, 2026)
-19.8%
—
$555.5M
In January 2026, the Company completed a restructuring of its available-for-sale securities portfolio, selling $1.5 billion of lower-yielding securities (average yield 2.49%) and reinvesting $1.4 billion in higher-yielding securities (average yield 4.35%), producing a $98.6 million pre-tax realized loss (approximately $0.95 per diluted share after tax). The restructure is expected to add roughly $23.8 million to annual net interest income, lifting securities portfolio yield by 32 bps and net interest margin by 7 bps, with an estimated 50-month payback period.
The Board authorized a new stock repurchase program in December 2025 (effective January 1, 2026) covering up to 4.1 million shares; during Q1 2026 the Company repurchased 1.4 million shares at an average price of $67.58 per share and accrued $0.8 million in estimated excise tax. The Company also raised its quarterly common dividend 11% to $0.50 per share, declared January 29, 2026 and paid March 16, 2026, continuing an uninterrupted dividend record since 1967.
Total loans stood at $24.0 billion at March 31, 2026, up less than 1% sequentially, with growth concentrated in commercial real estate–income producing (+2%, +$99.5M) and construction/land development (+7%, +$81.1M), partially offset by C&I declines (-1%, -$68.3M). Nonaccrual loans increased to $113.3 million (0.47% of loans) from $106.9 million at year-end; criticized commercial loans decreased to $522.2 million (2.79% of commercial loans) from $535.4 million. ACL coverage held at 1.43% of total loans and annualized net charge-offs were 0.19% of average loans. The Company shifted its Moody's scenario weighting from an even 50/50 split to 40% baseline / 60% mild-recession S-2, which management attributed to a more optimistic baseline forecast rather than a change in credit outlook.
A military conflict in the Middle East that escalated in late February 2026 disrupted energy markets and supply chains, pushing annualized inflation to 3.3% in March 2026 (from a recent ~2.5% trend) and Q1 2026 GDP growth to 2.0% (below the prior 2.6% expectation). The Federal Reserve held its benchmark rate at 3.50%–3.75%. Management identified the duration and resolution terms of the conflict as the most consequential variable for near-term economic conditions, deposit behavior, and credit performance.
The Company reported 27 net new bankers and the opening of a new financial center during the quarter, with FTE headcount at 3,658 (up from 3,497 a year earlier). Trust fee income rose 36% year-over-year, with $5.3 million of the increase attributable to the May 2, 2025 acquisition of Sabal Trust Company. The Company early-adopted ASU 2025-08 (purchased loans accounting) effective January 1, 2026, with no current financial impact as no acquisitions are pending.
(Filed on February 27, 2026)
+6.7%
—
$563M
Q4 2025 net income was $125.6 million ($1.49 diluted EPS), with net interest margin at 3.48% (down 1 bp linked-quarter) driven by lower loan yields (-10 bps) partially offset by lower cost of funds (+7 bps). Loans grew 2% to $24.0 billion, led by healthcare, investor commercial real estate, and equipment finance; deposits rose 2% to $29.3 billion, with interest-bearing public funds up $417 million (15%) on seasonal inflows. Criticized commercial loans fell to $535.4 million (2.88% of commercial loans) and nonaccrual loans declined to $106.9 million (0.45%) from 0.48% in Q3; the annual net charge-off ratio was 0.22%.
The company completed its 4.3 million-share buyback program in Q4, repurchasing 2,570,287 shares at an average price of $57.64 during the quarter (total 2025 repurchases: 4,306,200 shares at $57.30 average). A new 4.1 million-share program was approved effective January 1, 2026. In January 2026, the Board raised the quarterly dividend 11% to $0.50 per share. Separately, in January 2026 the company executed a securities portfolio restructure, selling $1.5 billion of AFS securities (2.49% average yield) and reinvesting $1.4 billion at 4.35% average yield, recognizing a $98.5 million pre-tax loss in Q1 2026 that is expected to add approximately $23.8 million to annual NII (32 bps to securities yield, 7 bps to NIM).
Annual context: The May 2, 2025 acquisition of Florida-based Sabal Trust Company added approximately $3 billion in assets under management to the trust and asset management business (total AUM at year-end 2025: $39.7 billion across all trust categories; trust fees rose 25% to $89.6 million for the full year). Under the multi-year organic growth plan announced in late 2024, the company added a net 22 new bankers in 2025, opened one new financial center, and expects to hire up to 50 additional bankers and open four new centers in the North Dallas, Texas area in 2026.
Credit loss provisioning reflected a shift in economic scenario weighting: management moved from a 40/60 baseline-to-downside (S-2 mild recession) probability split at year-end 2024 to a 50/50 split at year-end 2025, with the S-2 scenario implying a mild recession beginning Q1 2026 lasting three quarters. The annual provision for credit losses was $51.2 million (vs. $52.2 million in 2024); the allowance for credit losses was $341.7 million (1.43% of total loans), down 4 bps. Reportable modified loans to borrowers experiencing financial difficulty rose to $162.8 million from $99.5 million a year earlier, reflecting continued stress from elevated rates, inflation, and insurance costs.
(Filed on November 5, 2025)
+4.9%
—
$514.6M
First full-quarter impact of the May 2, 2025 Sabal Trust Company acquisition: trust fees rose 6% sequentially to $24.2M in Q3, and investment/annuity/insurance fees rose 37% to $14.5M, reflecting the added ~$3B in assets under management/administration in Central Florida. Q2 2025 had absorbed $5.9M in one-time acquisition costs (data processing, professional services, personnel); no such items appeared in Q3. Goodwill of $70.0M and $41.8M in customer-relationship intangibles (24-year amortization) were finalized in the purchase accounting.
Credit metrics showed mixed signals: nonaccrual loans rose to $113.6M (0.48% of loans) from $94.9M at June 30, driven by commercial non-real estate modifications, while criticized commercial loans moderated 4% to $549.2M (3.01% of commercial portfolio). Annualized net charge-offs improved to 0.19% from 0.31% in Q2. The company maintained a 50/50 probability weighting between Moody's baseline and S-2 mild-recession scenarios (the latter assuming tariffs rising to ~22% and a three-quarter recession beginning Q4 2025), unchanged from June 30.
Balance sheet funding dynamics shifted: total loans grew $134.8M (+1%) to $23.6B on CRE and equipment-finance expansion, while total deposits fell $386.9M (-1%) to $28.7B on seasonal public-funds outflows and retail time-deposit maturities (no brokered time deposits remained, vs. $6.9M at Dec 31, 2024). To fund the gap, FHLB borrowings surged to $1.3B (from $400M in Q2 and $0 at year-end) across three fixed-rate notes at 4.22% maturing Oct–Dec 2025, pushing wholesale funds to 7.74% of core deposits (internal target <25%). Net interest margin held steady at 3.49%.
ORE and foreclosed assets dropped 59% sequentially to $11.1M from $26.8M, largely on the sale of a single commercial property, which swung the line from a $1.2M net loss in Q2 to a $0.3M net income in Q3. Separately, the exit from indirect automobile lending (announced in a prior period) continued to run off the consumer portfolio, with the indirect auto balance shrinking to $5.9M from $18.0M at Dec 31, 2024.
Capital ratios expanded across the board in Q3 (TCE 10.01% +17 bps, CET1 14.09% +12 bps, total risk-based 15.92% +10 bps) even as the company repurchased 662,500 shares at an average $60.48 and paid a $0.45/share dividend. Year-to-date buybacks under the 4.3M-share authorization (through Dec 31, 2026) totaled 1.76M shares at an average $56.80, leaving ~2.5M shares of remaining capacity. The company paid uninterrupted dividends since 1967.
