First Quarter 2026 Financial Highlights:
Net income totaled $4.5 million for the first quarter of 2026, an increase of $1.1 million, or 33.9 percent over the first quarter of 2025
Total assets increased $12.6 million to $1.9 billion during the three months ended March 31, 2026, an annualized increase of 2.6 percent, from December 31, 2025
Total loans grew $11.7 million, or 3.2 percent annualized, during the three months ended March 31, 2026 and increased $97.5 million, or 7.1 percent, from the same period in 2025
Total deposits grew $40.3 million during the quarter ended March 31, 2026, or 10.4 percent on an annualized basis
Tangible book value per share (non-GAAP) at March 31, 2026 increased by $0.48, or 2.8 percent, to $17.53 per share when compared to December 31, 2025, and increased $2.62 per share, or 17.6 percent, when compared to March 31, 2025
Cost of funds (non-GAAP) was unchanged at 2.25% during the first quarter of 2026 when compared to the quarter ended December 31, 2025
"We are pleased to report a strong first quarter for our Company," remarked K. Wayne Wicker, Chairman and CEO of the Company. "We saw growth on both sides of the balance sheet, with deposit growth outpacing loan growth during the quarter with total deposits increasing 10.4% on an annualized basis. The dynamic interest rate environment combined with FOMC rate cuts during the fourth quarter of 2025, along with payoffs and loan maturities produced some pressure on earning asset yields during the first quarter of 2026. Despite persistent funding pressure, cost of funds remained unchanged quarter-over-quarter. We believe loan and deposit pipelines are poised to deliver solid growth during the second quarter of 2026 across all our markets. Our team's focus on full relationship banking and prudent risk management positions us to navigate the ongoing uncertainty surrounding global macroeconomic events, and an ever-evolving interest rate environment. Credit quality and risk indicators remain superb, as economic activity across our geographic footprint continues to be robust and is enhanced by continued in-migration and population growth across our markets."
Note: The Company's first quarter 2026 earnings press release contains two revisions to disclosures made in the Company's fourth quarter 2025 earnings press release that are immaterial individually and collectively, and both revisions were included in the Company's 2025 annual report. Shares outstanding and related calculations were adjusted higher by 92,000 shares to reflect restricted stock awards in 2025. Additionally, a balance sheet reclassification between securities and accumulated other comprehensive loss resulted in a decrease in other comprehensive loss of $2.8 million. The net effect of the two adjustments resulted in a $0.15 increase in book value per share over what was reported in the Company's fourth quarter 2025 earnings press release.
Selected Financial Highlights
For the Periods / Three Months Ended
March 31,
December 31,
Balance Sheet (000's)
2026
2025
Change ($)
Change (%)1
Total Assets
$ 1,932,222
$ 1,919,636
$ 12,586
2.6 %
Total Loans, Net of Unearned Income
1,478,121
1,466,440
11,681
3.2 %
Total Deposits
1,594,643
1,554,325
40,318
10.4 %
Borrowings (Excluding Subordinated Debt)
147,000
180,000
(33,000)
-73.3 %
Total Equity
138,437
134,567
3,870
11.5 %
March 31,
December 31,
Income Statement and Per Share Data
2026
2025
Change ($)
Change (%)
Net Income (000's)
$ 4,469
$ 4,763
$ (294)
-6.2 %
Diluted Earnings Per Share
0.58
0.62
(0.04)
-6.5 %
Tangible Book Value Per Share*
17.53
17.05
0.48
2.8 %
March 31,
December 31,
Selected Financial Ratios
2026
2025
Return on Average Assets
0.96 %
1.02 %
NPAs to Average Assets
0.00 %
0.00 %
Efficiency Ratio*
62.98 %
60.02 %
Net Interest Margin
3.24 %
3.35 %
For the Periods / Three Months Ended
March 31,
March 31,
Balance Sheet (000's)
2026
2025
Change ($)
Change (%)
Total Assets
$ 1,932,222
$ 1,867,705
$ 64,517
3.5 %
Total Loans, Net of Unearned Income
1,478,121
1,380,593
97,528
7.1 %
Total Deposits
1,594,643
1,567,932
26,711
1.7 %
Borrowings (Excluding Subordinated Debt)
147,000
130,000
17,000
13.1 %
Total Equity
138,437
118,384
20,053
16.9 %
March 31,
March 31,
Income Statement and Per Share Data
2026
2025
Change ($)
Change (%)
Net Income (000's)
$ 4,469
$ 3,337
$ 1,132
33.9 %
Diluted Earnings Per Share
0.58
0.43
0.15
34.9 %
Tangible Book Value Per Share*
17.53
14.91
2.62
17.6 %
1 Results annualized.
Earnings Summary
Net interest income increased $1.5 million, or 11.5 percent, for the three months ended March 31, 2026 when compared to the three months ended March 31, 2025, comprised of an increase in interest income of $1.0 million, or 4.3 percent, and a decrease in interest expense of $500.0 thousand, or 5.0 percent, when compared to the first quarter of 2025. The increase in interest income was driven by an increase in loan interest income of $1.4 million, or 7.1 percent, due to increased volume related to the Company's loan portfolio. The increase in interest income on loans was partially offset by a reduction in interest income on investment securities and cash balances of $453.0 thousand, or 16.1 percent. The decrease in interest income on investments was attributable to a targeted and strategic bond restructuring completed in the second quarter of 2025, of which the proceeds were redeployed into loans. The decrease in interest income on cash balances was attributable to lower interest rates paid on cash balances as well as lower average balances held when compared to the same period in 2025. The decrease in interest expense for the period ended March 31, 2026 was primarily due to lower yields on interest bearing deposit balances.
Noninterest income increased $244.0 thousand, or 16.8 percent, for the three months ended March 31, 2026 compared to the same three-month period in 2025, primarily due to an increase in secondary mortgage income of $213.0 thousand, or 61.2 percent, when compared to the same three-month period in 2025.
Noninterest expense increased $419.0 thousand, or 4.3 percent, for the three months ended March 31, 2026, compared to the same three-month period during 2025. The increase was driven primarily by an increase of $599.0 thousand, or 11.1 percent, in compensation and employee benefits. That increase was partially offset by a $129.0 thousand, or 5.7 percent, decrease in other non interest expense, as well as a decrease of $56.0 thousand, or 6.2 percent, in data processing and software expense.
The increase in net interest income of 11.5 percent for the three months ended March 31, 2026 and the increase in noninterest income of 16.8 percent, partially offset by the increase in noninterest expense of 4.3 percent for the three months ended March 31, 2026 when compared to the same three-month period in 2025, resulted in improvement to the Company's efficiency ratio (non-GAAP) by 4.7 percentage points to 62.98 percent for the quarter ended March 31, 2026.
Financial Performance Dollars in Thousands Except Per Share Data
Three Months Ended
March 31,
December 31,
September 30,
June 30,
March 31,
2026
2025
2025
2025
2025
Interest Income
Loans
$ 21,526
$ 22,152
$ 22,263
$ 21,090
$ 20,097
Investments
2,362
2,231
2,506
2,422
2,815
Total Interest Income
$ 23,888
$ 24,383
$ 24,769
$ 23,512
$ 22,912
Interest Expense
9,588
9,597
10,202
10,139
10,088
Net Interest Income
$ 14,300
$ 14,786
$ 14,567
$ 13,373
$ 12,824
Provision for Credit Losses
300
600
450
625
397
Noninterest Income
1,696
1,673
1,795
1,756
1,452
Noninterest Expense
10,074
9,879
10,401
9,906
9,655
Income Before Taxes
$ 5,622
$ 5,980
$ 5,511
$ 4,598
$ 4,224
Provision for Income Taxes
1,153
1,217
1,128
912
887
Net Income
$ 4,469
$ 4,763
$ 4,383
$ 3,686
$ 3,337
Basic Earnings Per Share
$ 0.59
$ 0.63
$ 0.59
$ 0.49
$ 0.44
Diluted Earnings Per Share
$ 0.58
$ 0.62
$ 0.57
$ 0.48
$ 0.43
Weighted Average Shares Outstanding
Basic
7,586,345
7,523,195
7,469,487
7,566,808
7,572,042
Diluted
7,768,831
7,690,660
7,646,539
7,723,349
7,692,154
Total Shares Outstanding
7,589,514
7,575,873
7,469,563
7,469,063
7,572,253
Noninterest Income/ExpenseDollars in Thousands
Three Months Ended
March 31,
December 31,
September 30,
June 30,
March 31,
2026
2025
2025
2025
2025
Noninterest Income
Service charges and fees
$ 122
$ 129
$ 123
$ 115
$ 105
Secondary mortgage income
561
496
555
531
348
Merchant and interchange income
589
632
695
697
560
Other income
424
416
422
413
439
Total noninterest income
$ 1,696
$ 1,673
$ 1,795
$ 1,756
$ 1,452
Noninterest expense
Salaries and employee benefits
$ 5,979
$ 5,773
$ 5,978
$ 5,438
$ 5,380
Occupancy
1,094
996
1,132
1,125
1,089
Data processing & Software
852
886
1,032
858
908
Other expense
2,149
2,224
2,259
2,485
2,278
Total noninterest expense
$ 10,074
$ 9,879
$ 10,401
