**CoreDallen Bankoff, Q1 net profit improves… Washington expansion costs continue to be a burden**

Cloudardlen Bank’s first-quarter net profit improves… the burden of ongoing Washington expansion costs

Kodarun Bank ( CDAB ) First quarter net profit for 2026 was $389,134. Earnings per share were $0.20, an improvement from $249,759 and $0.13 per share a year earlier. Net interest margin also increased to 4.20%, continuing the momentum of profit recovery.

This performance is considered to be driven by “loan expansion” and “interest margin improvement,” rather than asset growth. Total assets in the first quarter were $232.5 million, approximately 343.6 billion Korean won when converted to Korean won, with deposits of $199.6 million. Total loans increased to $380k. Due to the characteristics of regional banks, the deposit-loan structure and net interest margin are core to performance, and in the current interest rate environment, the rise in loan asset yields is particularly notable.

Washington expansion strategy continues… securing the Post Falls and Richland sites

Kodarun Bank is also actively advancing its growth strategy. The company announced that it has purchased land in Post Falls, Idaho, and plans to complete the transaction for the Richland site in Washington within the second quarter. This is interpreted as preparatory work for future branch expansion.

The company operates regional banks through its subsidiary “bankcda” in Idaho and Washington. Over the past year, it has been expanding its branches in Spokane and the Washington area, during which non-interest expenses such as labor costs and operating expenses have also increased. In other words, short-term cost burdens may compress profits, but this aligns with a typical regional bank growth strategy aimed at expanding the business base in the medium to long term.

From the 2025 performance trend, “interest margin improvement” is very evident

Looking at the annual trend, the business structure change of Kodarun Bank is more pronounced. The company’s net profit in Q4 2025 was $559,083, with an annual net profit of $1,583,847. The full-year diluted earnings per share were $0.83. In the same year, the net interest margin rose to 4.01%, total assets reached $240k, deposits were $200M, a 6.8% increase.

However, the cost burden also increased simultaneously. The company explained that due to the opening of two new branches, non-interest expenses increased by 17.1%. The relocation deal for the Richland branch has also been scheduled for 2026. Although business scale expansion and profit improvement are happening concurrently, cost control will be key to future performance.

Quarterly view, 2025 confirms a recovery trend

In Q3 2025, net profit was $402,111, higher than $253,324 in the same period last year. Cumulative net profit for the first nine months was $1,024,764, flat compared to the same period last year. At that time, total assets were $237.3 million, slightly down, but total loans were $130.1 million, a 3.8% increase, and deposits were $200 million, with little change. Year-to-date net interest margin was 3.99%, significantly improved from 3.20% last year.

Prior to this, in Q2 2025, net profit was $372,894, a slight decrease year-over-year, but total loans grew 14.1% to $137.6 million. Net interest margin improved to 3.86%, and asset quality indicators remained relatively stable. In Q1 2025, due to the initial expansion costs of opening the first full-service branch in Spokane, net profit declined, but the net interest margin had already risen to 3.62%.

Dividends also increased… paying $0.21 per share

Kodarun Bank also decided to pay a cash dividend of $0.21 per share. The dividend was paid on February 13, 2026, with the record date on January 30, 2026. This is slightly higher than the $0.20 per share dividend paid at the beginning of 2025.

Expanding dividends is generally interpreted as management having confidence in capital strength and future performance. However, for regional banks, performance can be sensitive to factors such as real estate market conditions, financing costs, and loan loss reserves, so relying solely on dividends to assess overall stability is limited.

Key balance: “regional expansion” and “maintaining profitability”

In summary, Kodarun Bank’s recent performance is close to a “transition period for expanding regional banks.” On one hand, it broadens its growth base through branch expansion and land acquisitions; on the other hand, it defends profitability by improving net interest margins. Meanwhile, the increased costs from new branch investments remain a persistent burden.

Ultimately, market focus will not only be on quarterly net profit but also on whether expansion in Washington can truly bring deposit inflows and loan growth. If net interest margins can be maintained above 4% and expansion effects are fully realized, Kodarun Bank could be viewed as a steady-growth example among small regional banks.

TP AI Notice: This article uses the TokenPost.ai basic language model for summarization. The main content may be incomplete or inconsistent with facts.