0001628280-26-032760
SEC filingStrong turnaround from a loss to profitability, driven by the absence of prior-year securities losses and HarborOne merger benefits, though operating cash flow turned negative.
Despite the return to profitability, net cash used in operating activities was $9.5 million in Q1 2026, compared to $47.3 million provided in Q1 2025. This shift reflects changes in working capital and other operating items, highlighting that earnings improvement did not immediately translate into positive operating cash flow.
Technology and data processing expenses increased, driven by higher software and cybersecurity costs. The company continues to integrate the HarborOne merger, which contributed to expense growth. Management noted that the increase in noninterest expenses was partly due to merger-related costs.
Management believes the company met all capital adequacy requirements as of March 31, 2026. The company maintains investments for liquidity purposes and as collateral for interest rate derivative positions. Key factors in credit assessment include industry conditions, earnings trends, and collateral considerations.