The company’s quarterly results, revised from earlier reports, reflect an after-tax provision for credit losses of $3.2 million. The primary driver was a single out-of-market commercial borrower that ceased operations during the quarter, leading to a $2.9 million reserve against the outstanding debt. While the bank reported an annualized loan growth of 4%—its first expansion in 13 quarters—the credit-related charges and ongoing severance costs weighed heavily on the bottom line.

Despite the net loss, interim CEO Harry Golliday highlighted improved pre-tax, pre-provision income, which rose to $2.9 million from $2.2 million in the first quarter. This growth was bolstered by a more favorable deposit mix and disciplined expense management, including a 19% reduction in headcount compared to the same period last year. The bank continues to navigate a transition period, having recently exited indirect fintech lending partnerships to sharpen its focus on local community banking and residential mortgage products.