0001730984-26-000048
SEC filingStrong quarter driven by net interest income growth and a reversal of credit loss provisions, though non-recurring items boosted results.
Net interest income increased, driven by growth in average balances of money market and time deposit accounts, partially offset by lower rates paid on those accounts. The increase in money market and time deposits was driven by growth and a shift in deposit composition as customers migrated toward interest-bearing products in response to the prevailing rate environment. The overall increase in total deposits from December 31, 2025 primarily reflects noninterest-bearing demand deposit growth, partially offset by a decline in NOW accounts.
The provision for credit losses reversed, contributing to net income. Management continues to monitor deposit mix and pricing strategies in the context of funding costs, liquidity needs, and interest rate risk.
Loan activity reflected repayments and originations consistent with the current economic environment. Management maintains a liquidity position that it believes will adequately provide funding for loan demand and deposit run off that may occur in the normal course of business.
Total deposits increased, with growth in noninterest-bearing demand deposits and time deposits. The increase in money market and time deposits was driven by growth and customer migration toward interest-bearing products.
Noninterest income and expense were in line with expectations, with no material changes.