Dafinchi AI

Credit Acceptance Corporation

CACC

Financial Services

2w

Impact of Scorecard Change on Loan Performance and Origination Volumes

The Q3 2024 scorecard change resulted in lower advance rates, likely impacting origination volumes and loan performance.
Loans originated after the scorecard change in Q3 2024 are performing as expected, indicating a positive effect of the new scoring model.
The change contributed to a decline in unit and dollar volumes, with a notable impact on the 2024 vintage loans.

Old National Bancorp

ONB

Financial Services

3w

Financial Performance Summary

Adjusted non-interest expenses were $344 million, reflecting two months of Bremer operations, with positive operating leverage year over year.
Adjusted non-interest income was $112 million, reflecting growth in wealth, mortgage, and capital markets.
CET1 ratio was 10.74%, approximately 50 basis points higher than expected post-Bremer close.
CET1 ratio was better than expected at 10.74%, about 50 basis points higher than modeled post-Bremer.
Criticized and classified loans decreased by approximately 9% excluding Bremer, and allowance for credit losses improved by 8 basis points to 1.24%.
Loan growth excluding Bremer was 3.7% annualized from last quarter, in line with guidance, with strong commercial and C&I loan production.
Loan growth excluding Bremer was 3.7% annualized from last quarter, in line with guidance, with strong commercial and industrial loan production.
Net charge-offs were 24 basis points, or 21 basis points excluding charge-offs on PCD loans, with non-accrual loans declining 5 basis points during the quarter.
Net interest income and margin increased driven by Bremer, organic loan growth, and securities portfolio repositioning.
Old National reported GAAP 2Q earnings per share of $0.34, with adjusted EPS of $0.53 excluding $0.19 of net merger-related expenses, representing an 18% increase over the prior quarter and 15% year over year.
Tangible book value per share increased by 14% year over year despite the impact of the Bremer partnership.
Total deposits increased by $13.3 billion, with core deposits ex-brokered up $11.6 billion.

Community Bank System, Inc.

CBU

Financial Services

3w

Financial Performance Summary

Allowance for credit losses was $81.9 million or 78 basis points of loans, covering over five times trailing net charge-offs.
Deposits increased 4.3% year over year but decreased 1.4% sequentially due to seasonal municipal deposit outflows.
GAAP earnings per share were $0.97, up 6.6% year over year and 4.3% sequentially.
Loans grew $98 million sequentially and $495.3 million year over year, driven by consumer indirect lending and business lending.
Net charge-offs were $5.1 million or 20 basis points annualized, elevated due to one CRE loan charge-off.
Net interest income was $124.7 million, up 14% year over year and 3.8% sequentially, marking the fifth consecutive quarter of growth.
Net interest margin increased 6 basis points to 3.3%.
Noninterest expenses increased 8.5% year over year, driven by salaries, data processing, restructuring charges, and branch expansion costs.
Nonperforming loans decreased sequentially and were stable year over year at about 50 basis points of total loans.
Operating earnings per share were $1.04, a record quarterly result, up from $0.95 a year ago and $0.98 last quarter.
Provision for credit losses was $4.1 million, higher than prior year but lower than last quarter.

Bread Financial Holdings, Inc.

BFH

Financial Services

3w

Progress in Credit Metrics and Updated Full-Year Loss Guidance

Credit sales grew 4% YoY, driven by nondiscretionary purchases and lower gas prices positively influencing retail spending.
Net loss rate improved to 7.9%, down 70 basis points YoY, with an updated full-year outlook of 7.8%-7.9%.
Credit metrics are benefiting from credit tightening, product mix shifts, and macroeconomic stability, with a focus on prudent risk management.

Simmons First National Corporation

SFNC

Financial Services

4w

Financial Performance Summary

Credit quality remains stable with good trends in classified loans, past dues, and no new significant nonperforming loans beyond previously disclosed large credits.
Loan production and pipeline remain strong despite some headwinds from elevated payoffs and competitive loan pricing.
Net interest income (NII) and expenses both beat expectations in Q2 2025, contributing positively to financial results.
Net interest margin (NIM) reached and exceeded the 3% level ahead of schedule, driven primarily by loan repricing and deposit remixing.

OFG

Financial Services

4w

Strong Asset and Loan Growth with Record Levels

Assets exceeded $12 billion and loans surpassed $8 billion, both reaching record levels.
Loan origination increased by 38% from the previous quarter and 33% year-over-year, driven by all lending channels in Puerto Rico and the U.S.
The company expects full-year loan growth to be revised upward to 5-6%, from previous guidance of 3-4%.

Heritage Financial Corporation

HFWA

Financial Services

3w

Financial Performance Summary

Earnings per share increased 8.2% versus last quarter and 17.8% versus Q2 2024 on an adjusted basis.
Net interest income rose by $1.3 million or 2.4% from the prior quarter due to higher net interest margin and more days in Q2.
Net interest margin improved to 3.51% from 3.44% primarily due to higher loan and investment portfolio yields.
Noninterest expense decreased by $298,000 from prior quarter, mainly from lower benefit costs and payroll taxes.
Provision for credit losses was $956,000, reflecting loan growth and net charge-offs.
Regulatory capital ratios remain strong with tangible common equity ratio at 9.4%, up from 9.3%.
Repurchased 193,700 shares at $4.5 million cost during Q2, with 797,000 shares remaining under repurchase plan.
Total deposits decreased $60.9 million due to seasonal tax payment effects, but average total deposits increased $35.4 million from prior quarter.
Total loan balances increased by $10 million in Q2, with loan yields at 5.50%, up 5 basis points from Q1.

Bank of Marin Bancorp

BMRC

Financial Services

2w

Financial Performance Summary

Capital ratios remain strong with total risk-based capital ratio at 16.25% and tangible common equity ratio at 9.95%.
Net income and EPS grew 18% quarter-over-quarter excluding a $8.5 million loss on securities sales and related tax impact.
Net interest income increased to $25.9 million, driven by higher average earning assets and a 7 basis point increase in net interest margin.
Net interest margin expansion was due to a 1 basis point decrease in cost of deposits and a 6 basis point increase in average yield on earning assets.
Noninterest income was negative due to the securities portfolio loss, but other noninterest income areas were consistent with prior quarter.
No provision for credit losses was required due to stable loan portfolio and high reserves; allowance for credit losses remained at 1.44% of total loans.
Pretax pre-provision net income increased 15% compared to prior quarter and 85% compared to prior year-to-date.
Repurchased $2.2 million of shares during the quarter within a limited window.
Total deposits declined in Q2 due to normal client activity but have grown year-to-date; more than 70% of Q2 deposit outflows recouped in July.

West Bancorporation, Inc.

WTBA

Financial Services

3w

Financial Performance Summary

Brokered funding was reduced by approximately $127 million, improving liquidity.
Core deposit balances increased by approximately $195 million in the quarter, driven in part by a municipal bond offering.
Loan balances decreased slightly to just under $3 billion due to payoffs and refinancing, but new loans were originated at higher interest rates.
Net interest income and overall earnings improved compared to prior periods.
No provision for credit losses was recorded due to strong credit quality.
The loan portfolio yield improved to 5.59% in Q2 from 5.52% in Q1, partially offset by a 4 basis point increase in deposit costs.
West Bancorporation reported net income of $8 million in Q2 2035, up from $7.8 million in Q1 2035 and $5.2 million in Q2 2024.

First Internet Bancorp

INBK

Financial Services

3w

Elevated Provision Expense and Credit Quality in Franchise and Small Business Portfolios

Third consecutive quarter of increased provision expense and nonperforming loans, particularly in franchise finance and small business lending portfolios.
Overall industry nonperforming loan ratio remains at 1%, with delinquencies improving to 62 basis points, a 15 basis point decline.
Franchise finance loans moved to nonperforming status totaling $12.6 million in Q2, with specific reserves of $4.5 million.
Portfolio of 633 loans, with 5% on nonaccrual, and recent success in workout strategies leading to improved recovery rates.
Significant progress in derisking the franchise portfolio, with a small pool of delinquent borrowers and slowing delinquencies, indicating potential for future improvement.