0000875357-26-000034
SEC filingStrong earnings growth driven by higher fee income and lower credit costs, though net interest income declined on deposit margin pressure.
Net income for the first quarter of 2026 was $155.8 million, up 30% from $119.8 million in the same period last year. Diluted earnings per share increased 39% to $2.58 from $1.86. The improvement was primarily driven by higher fee revenue and the absence of a provision for credit losses, reflecting strong credit quality.
The company recorded no provision for credit losses in the first quarter, compared to a provision in the prior year period. This reflects continued strong credit performance, with net charge-offs remaining minimal. Nonperforming assets declined, supported by a stable economic outlook and disciplined underwriting.
Net cash provided by operating activities was negative $248.7 million, compared to positive $20.3 million in the prior year quarter. The change was primarily driven by growth in trading securities and other working capital movements. Financing cash flows were strong, with increased borrowings supporting liquidity and balance sheet growth.
Management continues to monitor macroeconomic variables, including geopolitical risks, and maintains a balanced scenario weighting in its credit loss estimates. The company's customer risk management program addresses liquidity and capital risks. For further discussion, refer to the Liquidity and Capital section of Management's Discussion and Analysis.