Net income falls 19% as nonperforming assets triple to $38.3M; NIM compresses 21bp

Filed May 15, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 15, 2025 · ~2 min read

Key Changes

• high

  Nonperforming assets surged to $38.3M (2.69% of total assets) from $13.2M (0.88%) year-over-year, driven by two commercial relationships identified in the 2025 portfolio review. Individually evaluated loans jumped to $84.7M with $18.5M in specific reserves from $15.8M with $2.5M in reserves.

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

  Net interest margin compressed 21 basis points to 3.10% from 3.31%, with ~10bp attributable to non-recurring 2024 interest recoveries and prepayment fees in the prior-year quarter. The remaining compression reflects lower loan yields from maturities, payoffs, and elevated nonperforming loans.

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

  Allowance for credit losses ratio jumped to 3.24% from 1.91% year-over-year, reflecting a $10.8M reserve build in Q4 2025 for commercial credits with unique risk characteristics. The provision reversed to a $168K benefit in Q1 2026 from $457K expense in Q1 2025, as the prior reserve build absorbed expected losses.

  MD&A: Credit Loss Allowance verify on EDGAR →