0001275101-26-000019
SEC filingNet income more than tripled year-over-year to $2.8M, driven by higher net interest income, growth in noninterest income, lower noninterest expense, and a recovery of credit losses — not revenue growth, which rose modestly by 1.3%.
Net income for Q1 FY2026 totaled $2.77 million, a substantial increase from $842,000 in Q1 FY2025. This improvement reflects the increase in net income driven by higher net interest income, growth in noninterest income, lower noninterest expense, and a recovery of credit losses in the current period — as stated in Management Discussion. Revenue rose modestly to $994,000 (from $981,000), representing 1.3% year-over-year growth, confirming that the earnings surge was not attributable to top-line expansion.
Net cash provided by operating activities was $4.74 million, up sharply from $763,000 in the prior-year quarter. This robust operating cash flow — combined with capital expenditures of $382,000 — yielded free cash flow of $4.36 million. The significant increase in operating cash flow supports the quality and sustainability of reported earnings, consistent with management’s view that liquid assets were adequate at March 31, 2026 and that additional liquidity is anticipated from deposit growth and loan repayments.
Total assets increased during the quarter, primarily due to growth in federal funds sold and securities available-for-sale, reflecting deployment of available liquidity — partially offset by a decline in loans (net of the allowance for credit losses). While specific capital ratio calculations are not presented, management expects consolidated capital ratios at March 31, 2026 to be substantially equivalent to those of the Bank. This expectation reinforces confidence in the firm’s regulatory standing and balance sheet resilience.