Overview
- Net income was $6.24 million, or $2.06 per diluted share, up 3% from Q2 and down 27% year over year.
- Total loans reached $1.12 billion, rising 3% quarter over quarter and 12% year over year, as net interest margin improved to 5.15% and book value per share increased to $60.04.
- Merchant services revenue fell 42% from a year earlier to $3.21 million after planned ISO partner exits, and the board approved a policy to allow onboarding higher‑risk verticals under tighter compliance to rebuild volumes.
- Deposits totaled $1.26 billion, up 2% from Q2 but down 2% from a year earlier, with greater wholesale funding used after ISO-related outflows that management expects to reduce as deposits recover.
- Asset quality weakened with nonperforming assets at $27.93 million (1.86% of assets) and delinquencies at $7.53 million; the company completed its $15.0 million share repurchase and reported regulatory capital ratios at well-capitalized levels.