0001493152-26-021454
SEC filingNet income rose 7.8% to $5.1M, driven by higher non-interest income and lower deposit costs, partially offset by increased expenses and provisions.
Net interest income increased during the first quarter of 2026 compared to the same period in the prior year, driven by loan growth and a reduction in higher-cost brokered deposits. The increase in total borrowings was primarily due to an increase in FHLB line of credit borrowings, which replaced more expensive funding sources. This strategic shift helped improve net interest margin and contributed to overall profitability.
Non-interest expense increased during the quarter, driven by a fraud loss and costs associated with system upgrades. While specific expense line items are not detailed in the authoritative packet, management commentary indicates that these factors contributed to higher operating costs. The company remains focused on managing expenses while investing in technology and risk management.
The provision for credit losses increased compared to the prior year, reflecting higher net charge-offs. The company continues to monitor credit quality closely, particularly in light of economic uncertainties. Management believes that the allowance for credit losses is adequate based on current conditions.