Despite the quarterly loss, the balance sheet showed modest loan growth. Total loans rose to $2.07 billion at June 30, up $64 million during the quarter on new originations and purchases. Total deposits were $2.17 billion, with noninterest-bearing deposits of $576.5 million. The average cost of deposits fell to 1.56%. Nonperforming loans declined to 0.47% of total loans, aided by payoffs and the sale of $9.2 million of loans, of which $7.7 million were nonperforming.
Capital ratios remained above regulatory "well capitalized" thresholds, with Total Capital at 14.87% and CET1 at 13.76%. Shareholders' equity stood at $335.39 million after the company paid common dividends of $0.60 per share year-to-date. The allowance for credit losses on loans increased to $22.95 million, or 1.11% of loans.
Baron's purchase adds to a stake that includes 52,500 performance stock units granted at a reference price of $40.26, according to historical filing data. The insider buy occurs while the bank navigates a leadership transition, elevated credit costs, and a restructuring of its loan portfolio. Whether the CEO's capital commitment signals a turning point or simply accompanies a deeper reset will depend on whether credit trends stabilize and the new executive team can translate loan growth into earnings.
Sources: Source 1 · Source 2 · Source 3 · Source 4 · Source 5 · Source 6
