Overview
- The bank reported $21 million in Q4 net income, or about $30 million on an adjusted basis, ending eight consecutive quarterly losses.
- Commercial real estate balances fell by roughly $2.3 billion in the quarter, including $1.5 billion in multifamily, lowering the CRE concentration to below 400% at roughly 381%.
- Net interest margin rose to 2.14% including a one‑time $20 million hedge gain, or 2.05% excluding it, as noninterest expenses declined sharply.
- Management guided to a full year of profitability in 2026 and maintained long‑term turnaround targets, while trimming 2026–2027 net interest income expectations by about $100 million.
- Credit challenges remain with about $3 billion of troubled loans and a roughly $113 million write‑off tied to a Pinnacle rent‑stabilized portfolio sale that has not yet closed.