Q2 net income flat YoY as 33bp margin expansion offsets $1.7M consulting fee

Filed August 6, 2026 · Period ending June 30, 2026 · Compared to 10-Q Aug 13, 2025 · ~2 min read

Key Changes

• high

  Net interest margin expanded 33 basis points to 3.98% in Q2 2026 (from 3.65% in Q2 2025), driven by adjustable-rate loan repricing and the March 2026 repayment of $65 million in FHLB advances that reduced interest expense by $1.2 million for the six-month period.

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

  Q2 2026 results include a one-time $1.7 million after-tax consulting fee for core processing system contract negotiations. Excluding this charge, net income would have increased year-over-year; management presents non-GAAP metrics excluding the expense.

  MD&A: One-Time Consulting Expense verify on EDGAR →
• high

  Loan growth accelerated to $50.4 million in H1 2026 (vs $21.7 million in H1 2025), led by $55 million in commercial real estate from new and existing relationships. Commercial and industrial loans declined $35 million due to competitive pricing pressures ($15M), business sales ($5.3M), and refinancing to other institutions ($8M).

  MD&A: Loan Portfolio Growth verify on EDGAR →