Q2 net income falls 30.5% to $2.9M on $6.6M in specific reserves for two troubled loans

Filed August 13, 2026 · Period ending June 30, 2026 · Compared to 10-Q Aug 14, 2025 · ~1 min read

Key Changes

• high

  $6.6M in specific reserves on two collateral-dependent commercial loans (one to an auto dealer) drove Q2 provision expense up $2.6M and pushed the allowance to 1.33% of loans from 0.96% at year-end.

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

  Net income fell 30.5% to $2.9M ($0.62/share) in Q2 2026 from $4.2M ($0.89/share) in Q2 2025; return on equity dropped 397bp to 6.82% and return on assets fell 42bp to 0.70%.

  MD&A: Quarterly Net Income verify on EDGAR →
• high

  Net interest margin contracted 24bp to 3.92% in Q2 2026 from 4.17% in Q2 2025, driven by funding costs rising faster than earning-asset yields as deposits shifted to higher-cost CDs and money market accounts.

  MD&A: Net Interest Margin verify on EDGAR →