0001004702-26-000052
SEC filingNet income declined 4.7% to $20.5M, but diluted EPS rose 2.9% to $0.36 as operating cash flow surged to $25.2M.
Net interest margin increased to 2.93% from 2.90% in the prior year quarter, primarily due to a decrease in cost of funds. This improvement reflects the company's disciplined deposit pricing strategy and liability management, which helped offset the impact of lower asset yields in a declining rate environment. The margin expansion contributed to stable net interest income despite a slight compression in earning asset yields.
Net cash provided by operating activities surged to $25.2 million in Q1 2026 from negative $1.8 million in Q1 2025. This significant swing was driven by favorable working capital changes, including lower loan originations for sale and improved collection cycles. The strong operating cash flow generation underscores the company's ability to convert earnings into cash, supporting liquidity and capital deployment.