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SEC filingSolid start to fiscal 2026 with net income up 5% and EPS up 8%, driven by lower interest expense and strong customer deposit growth, partially offset by higher noninterest expense and provision.
Net interest income increased compared to the prior year quarter, primarily due to the impact of lower interest rates on interest-bearing liabilities and an improvement in our funding mix. Strong customer deposit growth allowed us to reduce levels of brokered deposits and borrowings, further lowering interest expense. The decrease in interest expense was primarily due to a decline in interest rates.
The provision for credit losses increased compared to the prior year quarter, reflecting higher net charge-offs and specific reserves. The decrease in the amount of substandard loans was primarily due to loan paydowns.