- ConnectOne's assets now stand at nearly $14 billion, with $11.2 billion in loans and $11.3 billion of deposits, and a market capitalization exceeding $1.2 billion.
- Core deposit growth was strong, including gains in DTA balances from both existing and newly acquired relationships.
- Loan-to-deposit ratio improved to 99% at the end of Q2, down from 106% as of March 31.
- Loan-to-deposit ratio improved to just below 100%, with expectations to operate around that threshold going forward.
- Net interest margin was 3.06% in Q2, with expectations to increase to about 3.25% by year-end and continue expanding through 2026.
- Noninterest-bearing demand deposits increased by more than $100 million since March 31, approximately 15% annualized.
- Nonperforming asset ratio improved to 0.28% from 0.51% a year ago, and charge-offs remained reasonable at 22 basis points.
- Provision for credit losses was $35.7 million in Q2, including a $27.4 million day 1 provision from the merger and an $8.3 million operating provision, higher than usual due to merger-related adjustments.
- Tangible common equity ratio stands above 8% at 8.1%, with the bank CET ratio above 12%, slightly down due to the acquisition.
- Total deposits were up an annualized 8%, with true core balances increasing by more than $500 million or 17% annualized after factoring in a $200 million decline in brokered deposits.
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- The acquisition of Bancorp Financial and Evergreen Bank Group significantly impacted Q3 earnings, with adjusted net income excluding acquisition-related costs reaching $28.4 million.
- Day 2 provision on non-PCD loans related to Evergreen was $13.2 million pretax, highlighting the integration's immediate credit impact.
- Despite the acquisition costs of $11.8 million, tangible book value increased, and the capital ratios remained resilient, with tangible equity ratio only declining by 42 basis points.
- Management expects the earn-back period for the Evergreen deal to be significantly shorter than the initially estimated three years, due to strong performance and integration.
- Loan purchase accounting accretion contributed $1.3 million, but is expected to be a small contributor going forward, indicating limited ongoing impact.
- The acquisition has led to a substantial increase in total loans by $1.27 billion, primarily from the Evergreen deal, boosting net interest margin and profitability.
- Allowance for credit losses ratio increased slightly to 1.45%, with a $2.5 million provision driven by specific reserves and net charge-offs.
- Capital ratios remain strong with CET1 at 13.86% and Tier 1 leverage at 12.12%, tangible common equity to tangible assets at 9.98%, and tangible book value per share increased to $26.70.
- Deposits decreased by $53.6 million to $3.74 billion, with a shift toward more noninterest-bearing deposits, increasing their ratio to 26.7%.
- Loans held for investment grew by $23.1 million or 3% annualized to $3.1 billion, despite higher loan payoffs totaling $49.1 million in multifamily loans.
- Net interest income increased to $42.5 million from $38.5 million sequentially, with net interest margin (NIM) rising to 4.07% from 3.81%, partly due to the onetime interest recovery.
- Noninterest expense increased slightly to $33.5 million, driven by higher personnel and professional service costs.
- Noninterest income rose to $12.2 million from $10.6 million, mainly due to mortgage banking revenue increases and fair value adjustments.
- Second quarter diluted EPS was $0.86, up from $0.72 in the linked quarter, boosted by a $1.6 million onetime interest recovery related to a fully repaid nonaccrual loan.
- Core fee revenue grew 9% quarter-over-quarter, led by wealth (17% YoY growth), capital markets, and mortgage businesses.
- Core net interest margin expanded by 1 basis point to 3.89%, driven by a 9 basis point reduction in total funding costs and a deposit beta of 43%.
- Gross loans were flat quarter-over-quarter, with strong commercial fundings, especially in C&I loans growing 2% linked quarter, and consumer residential mortgage and HELOCs growing 2% and 8% respectively.
- Net credit costs were $14.3 million with net charge-offs at 30 basis points, half attributable to the Upstart sale; excluding Upstart, net charge-offs were 14 basis points.
- Nonperforming assets declined to 51 basis points of total assets due to payoffs, despite a slight uptick in delinquencies that resolved in July.
- Total client deposits increased 1% linked quarter and 5% year-over-year, with noninterest deposits growing 11% YoY to over 30% of total deposits.
- WSFS reported core earnings per share of $1.27 for Q2 2025, with core return on assets at 1.3% and core return on tangible common equity at 18.03%, all improved from Q1.
- WSFS returned $87.3 million in capital during Q2, including $77.7 million in share buybacks representing 2.7% of outstanding shares; year-to-date buybacks total 4.4% of shares.
- Adjusted EBITDA was $53 million and adjusted EPS was $0.36 based on 118 million diluted shares.
- Auto business grew 87% sequentially and Home business grew 67% sequentially, both accelerating from Q1 growth rates.
- Contribution margin improved to 58%, up 3 percentage points from the prior quarter and exceeding guidance.
- GAAP net income was positive $6 million, achieving profitability a quarter earlier than expected.
- GAAP operating expenses were $252 million, up 16% sequentially, driven by variable costs increasing 21% relative to a 55% increase in loan volume.
- Loans held on balance sheet increased to $1.02 billion from $815 million in Q1, mainly due to growth in new products.
- Originations on the platform reached $2.8 billion, the highest volume in three years, with 373,000 loan transactions representing over 250,000 new borrowers.
- Small dollar loans grew 40% sequentially and crossed $100 million in quarterly originations alongside Auto.
- Upstart reported exceptional Q2 2025 results with total revenue of approximately $257 million, up 102% year-on-year.
- Adjusted earnings per share for Q2 2025 was $1.14, a 56% increase over Q2 2024.
- Adjusted expenses increased 5% year-over-year due to investments in growth and efficiency initiatives.
- Bank lending balances increased 19% year-over-year, with pledged asset line balances reaching a record $21 billion.
- Capital return included $5.3 billion through dividends, preferred stock redemption, and stock repurchases totaling $1.85 billion year-to-date.
- Client trading volumes increased 38% year-over-year to 7.6 million daily average trades in Q2.
- Core net new assets reached $218 billion in the first half of 2025, up 39% year-over-year.
- High-cost bank borrowings were reduced by over 70% from peak to $27.7 billion as of June 30, 2025.
- Net interest revenue increased 31% year-over-year driven by reduction in high-cost borrowings and increased securities lending.
- Second quarter revenue was $5.9 billion, a 25% increase year-over-year.
- Common stock repurchases doubled from Q2 to $6.1 billion, and dividend was increased.
- Credit quality improved with net loan charge-off ratio declining 9 basis points year-over-year and 4 basis points sequentially.
- Net income for Q3 2025 was $5.6 billion, up 9% year-over-year, with diluted earnings per share of $1.66.
- Net interest income increased $242 million (2%) from Q2, despite a 7 basis point decline in net interest margin due to growth in lower-yielding trading assets.
- Non-interest expense rose 6% year-over-year, driven by $296 million severance, higher revenue-related compensation, and increased technology and advertising spend.
- Non-interest income grew 9% year-over-year, led by wealth management and investment banking fee growth.
- Return on tangible common equity (ROTCE) improved to 15.2% in Q3, approaching the 15% target set in 2020.
- Revenue increased 5% from a year ago, driven by growth in net interest income and strong fee-based revenue.
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