Net income falls 17.5% as material weakness disclosed; margin improves 11 bps to 3.04%

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

Key Changes

• high

  Company disclosed a material weakness in internal controls that caused a material misstatement in FY2025 financials, related to untimely recognition of bank-owned life insurance death benefits. Management implemented a new reconciliation control requiring direct verification with insurance carriers.

  Controls & Procedures verify on EDGAR →
• high

  Net income declined 17.5% to $2.4M for the nine months ended March 31, 2026, down from $2.9M in the prior-year period. The decline reflects lower accretion income ($647K vs $2.4M) as fair-value adjustments from the 2023 Regal Bancorp acquisition wind down.

  MD&A: Results of Operations verify on EDGAR →
• high

  Company repurchased 761,229 shares for $12.3M in the nine-month period, up from $7.3M in the prior year. Combined with $1.2M in dividends, capital returned to shareholders totaled $13.5M, exceeding the $2.4M in net earnings and reducing equity by $9.3M.

  MD&A: Capital Management verify on EDGAR →