Red Flags Detected

• ⚠ Loan Sales At Substantial Losses (new) — The company is selling a portfolio of problem loans totaling approximately $210 million and expects to record a substantial loss in the third quarter of 2026.
• ⚠ Cannabis Business Sale (new) — The company is exiting its cannabis-related business, including loans and deposits, which may result in a significant loss and loss of future revenue.
• ⚠ Loan Policy Exceptions (new) — The company discovered past noncompliance with its own underwriting policies, leading to a significant number of loan exceptions.
• ⚠ Deferred Tax Asset Valuation Allowance (new) — The company expects to record a $50 million valuation allowance against its deferred tax asset due to a three-year cumulative loss position.
• ⚠ Management Turnover (new) — The company discloses significant recent turnover in senior management and the board, including the CEO, Chief Risk Officer, Chief Lending Officer, and Head of Retail.