Overview

• US regional bank's Q2 net income fell yr/yr

• Q2 operating revenue rose 5% sequentially, but dropped 12% from a year ago

• Company repurchased $7.84 mln in shares during Q2, about 4% of shareholder equity

Outlook

• Company expects deposit growth to increase and reliance on wholesale funding to decrease in 2026

• FFB Bancorp expects margin performance to improve as core deposits grow and loan growth benefits are realized

• Company expects operating leverage to improve and efficiency ratio to decline over next several quarters

Result Drivers

• LOAN AND DEPOSIT GROWTH - Sequential revenue growth was driven by increases in loan and investment interest income, gain on sale of loans, and merchant services income, partly offset by higher interest expense

• MERCHANT SERVICES VOLATILITY - Year-over-year revenue decline was mainly due to lower merchant services income, reflecting planned ISO partner exits and reduced sponsorship volumes

• MARGIN PRESSURE - Net interest margin fell due to higher funding costs and nonrecurring interest reversals from loans migrating to non-accrual

Company press release: ID:nGNX9gcxlH

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 EPS		$1.88
Q2 Net Income		$5.48 mln
Q2 Net Interest Margin		4.71%

Reuters Recommended Reads

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• July 21 - AmeriServ Financial returns to Q2 profit on higher interest income

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