Q1 net income +29% YoY to $25.6M on Bancorp acquisition; credit stress rises sharply

Filed May 7, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 9, 2025 · ~2 min read

Key Changes

• high

  Net charge-offs jumped 125% YoY to $9.8M (0.76% of avg loans vs 0.45% prior year), driven by $4.7M powersport loan write-offs, $3.9M commercial real estate charge-off, and $1.3M commercial relationship loss. Provision for credit losses rose to $9.5M from $2.4M.

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

  Nonperforming loans surged 88% YoY to $62.6M (1.5% of total loans vs 0.9% prior year), with $19.7M in new inflows during Q1 2026—primarily ten commercial loans totaling $17.3M. Classified assets rose 70% to $150.1M.

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

  Bancorp Financial acquisition closed July 1, 2025, adding $1.43B assets, $1.20B loans, and $1.23B deposits for $189.4M (7.9M shares + $48.9M cash). Systems integration completed October 2025. Net interest income rose 29% YoY to $81.1M; margin expanded 27bp to 5.12%.

  MD&A: Acquisition verify on EDGAR →