Overview

• US regional bank's Q2 net income fell sharply due to one-time securities loss

• Net interest margin rose to 4.00% from 3.71% in Q2 2025

• Quarterly dividend increased 13% from a year ago

Outlook

• Company did not provide specific guidance for future quarters or full-year results

Result Drivers

• SECURITIES LOSS - Sale of investment securities for a one-time pre-tax loss of $3.8 mln negatively affected Q2 results, per management

• BALANCE SHEET LEVERAGE - $30 mln subordinated debt issuance used to increase investment securities by $250 mln, generating additional net interest income

• LOAN AND DEPOSIT GROWTH - Loan growth of $38.4 mln (9.3% annualized) and core deposit growth of $28.7 mln (5.85% annualized) supported improved net interest margin

Company press release: ID:nPn9dptgza

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Net Income		$1.67 mln
Q2 Dividend		$0.26
Q2 Net Interest Margin		4.00%
Q2 Pretax Loss		$1.61 mln

Reuters Recommended Reads

• July 21 - Bar Harbor Q2 profit rises as securities losses ease

• July 21 - Orrstown Q2 net interest margin declines on subordinated debt amortization

• July 21 - KeyCorp quarterly profit rises on interest income strength

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