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SEC filingNet income rose slightly to $25.2M, driven by higher net interest income and non-interest income, though credit costs increased on a large multifamily reserve.
Net interest income increased due to higher yields and average balances on interest-earning assets, combined with a decrease in total cost of funds. This dynamic supported the modest growth in net income and earnings per share.
The provision for credit losses increased significantly, primarily driven by a large multifamily loan that required a higher reserve. This reflects ongoing credit quality challenges in the commercial real estate portfolio.
Non-interest income more than doubled, benefiting from higher deposit service charges and gains on equity investments. This diversification helped offset pressure from credit costs.
Operating cash flow improved to $56.8 million, up from $34.2 million in the prior year, driven by higher net income and favorable working capital changes. Capital expenditures rose to $6.1 million, reflecting investments in technology and facilities, but free cash flow remained robust at $50.7 million.