Q2 net income flat at $5.8M as non-performing loans surge $5.8M to $5.8M

Filed August 7, 2026 · Period ending June 30, 2026 · Compared to 10-Q Aug 8, 2025 · ~1 min read

Key Changes

• high

  Non-performing loans jumped $27M (49%) to $82.1M, driven by $21.7M in land development and $9.8M in commercial mortgage downgrades; NPA ratio rose to 3.40% from 2.38% at year-end.

  MD&A: Asset Quality verify on EDGAR →
• high

  Six-month provision increased $1.4M on $4.2M higher charge-offs, including a $3.9M participated-loan charge-off in Q1 after an April 2026 appraisal showed significantly lower value than the original participation appraisal.

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

  SBA loan income fell $1.4M (12.4%) in Q2 as sale volume dropped $27.6M, though gross margin improved to 7.9% from 6.2%; six-month SBA income down $2.0M on a 64% volume decline.

  MD&A: Non-Interest Income verify on EDGAR →