Net income available to common shareholders was $16.2 million, or $0.74 per diluted share, compared with a $5.1 million loss in the prior quarter and a $143.2 million loss in Q1 2025. Adjusted earnings were $17.2 million, or $0.79 per share, while net interest margin expanded to 3.91%.

The community bank loan portfolio grew by $68.8 million, or 2.1% annualized, while total loans declined $13.4 million due to runoff in specialty finance and non-core portfolios. Total deposits increased by $15.7 million, driven by an $81.6 million rise in retail balances despite a $22.8 million decline in wealth management deposits.

Nonperforming assets fell to 0.91% of total assets, down 10 basis points quarter-over-quarter, and the provision for credit losses declined to $5.4 million from $11.8 million. The common equity tier 1 ratio strengthened to 9.98%, approaching the 10% target, while total capital to risk-weighted assets stood at 15.27%.

Management repurchased $7.8 million of common stock and plans to prioritize community bank growth and efficiency improvements. Wealth management revenue remained stable at $8.2 million, and executives expect continued net interest margin expansion from lower funding costs and reduced portfolio risk.