Q2 net income falls 7% on $2.5M ag-loan reserve; NIM improves 6bp as funding costs decline

Filed July 31, 2026 · Period ending June 30, 2026 · Compared to 10-Q Aug 1, 2025 · ~2 min read

Key Changes

• high

  Q2 2026 net income declined 7% YoY to $9.9M, driven by a $2.5M specific reserve on a single agricultural production loan to a lumber-industry borrower. The company received a $0.5M payment post-quarter-end and is working on resolution alternatives.

  MD&A: Credit Loss Provision verify on EDGAR →
• high

  Net interest margin improved 6bp to 3.74% (from 3.68% in Q2 2025) as a 26bp decline in funding costs more than offset an 8bp decline in earning asset yields. Year-to-date NIM rose 4bp to 3.75%.

  MD&A: Net Interest Margin verify on EDGAR →
• high

  Interest rate risk profile shifted materially: rising-rate scenarios now project NII declines of 0.1% to 1.9% (vs. increases of 1.5% to 4.9% a year earlier), reflecting reduced asset sensitivity from balance sheet composition changes including less longer-term fixed-rate funding.

  Notes: Interest Rate Risk verify on EDGAR →