After Turn 5

The bank continues to build both funding and assets, adding more checking accounts and investing in long-term, fixed-rate securities. This brings income gains, but the trade-off is emerging.

ROE improves to 2.90%, with net income at its highest level yet. NIM drops slightly to 4.23%, as the mix of longer-term investments and rising funding costs starts to flatten the margin.

Liquidity jumps to 29.0%, thanks to the securities purchase. Credit quality holds at 719, but rate risk is now -5.3% — still elevated. Capital drops to 14.7%, signaling that growth is beginning to absorb your buffer.

The bank is profitable and growing. But with long-term assets on the books and higher interest rate exposure, it's starting to walk a tighter rope.