... its transformation is gaining operational traction, although earnings resilience remains in an early stage. The bank returned to profitability in each of the first two quarters of 2026, generating $55 million of net income in 1H26, compared with a $170 million loss in 1H25. The improvement has been led principally by cost transformation and improving pre-provision earnings rather than a fully restored revenue base. Expenses continued to decline in 2Q26, supported by lower personnel, vendor, real estate and FDIC costs, while the efficiency ratio improved materially. However, recurring profitability remains modest and sensitive to the pace at which higher-yielding commercial lending replaces runoff in lower-yielding legacy real estate portfolios. The balance-sheet trajectory is increasingly consistent with management's objective of becoming a more diversified commercial bank. Record C&I production drove more than $3 billion of net C&I and...
