0001628280-26-032682
SEC filingStrong quarter driven by the Olympic Bancorp merger, with net income up 36% YoY, though operating cash flow declined due to merger-related costs.
Diluted earnings per share increased 20.0% to $0.48, compared to $0.40 in the prior year quarter. The EPS growth reflects the higher net income, partially offset by an increase in diluted shares outstanding from the merger.
Net cash provided by operating activities was $13.97 million, down from $19.25 million in the prior year quarter. The decrease was primarily due to merger-related expenses and changes in working capital. Capital expenditures totaled $1.30 million, resulting in free cash flow of $12.67 million. Management believes the company's capital sources are adequate to meet all reasonably foreseeable short-term and long-term cash requirements.
The impact of incremental accretion on loan yield will change based on prepayment volumes and is expected to decrease over time as the balance of purchased loans declines. Management continues to monitor credit quality and liquidity positions.