- The company emphasized its focus on profitability, balance sheet optimization, and operational efficiency, which has been evident over the past 6 quarters.
- Net interest margin (NIM) expanded by 15 basis points, driven by higher asset yields and lower funding costs.
- The company maintained disciplined expense management and healthy credit metrics, with a loan portfolio that is slightly up and well remixing.
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- Loan growth of 6.5% annualized, primarily from C&I loans, mortgage warehouse, and premium finance.
- Loan production in Q2 was $1.9 billion, up from $1.5 billion in Q1, indicating increased market share.
- Bankers are actively gaining share through market presence and deposit-led growth strategies, with a focus on treasury management.
- The RBC ratio increased to 490%, reflecting a strong capital position, with management noting statutory restrictions limit the ability to deploy excess capital.
- The company is evaluating options for capital deployment, including buybacks and dividends, to optimize shareholder returns while maintaining a conservative risk profile.
- Management emphasized the importance of a strong RBC ratio for supporting growth and maintaining client and partner confidence, with ongoing assessments of long-term capital strategy.
- GAAP earnings per share of $1.04, up 25.3% year over year and 7.2% sequentially.
- Loan balances grew 4.9% year over year and 2.2% sequentially, with deposits up 4.3% year over year.
- Net interest income grew 13.7% year over year to $128.2 million, marking six consecutive quarters of growth.
- Net interest margin increased by 3 basis points to 3.33%, driven by higher loan yields and stable funding costs.
- Non-interest expenses increased 3.3% year over year, including costs related to branch expansion and consulting.
- Provision for credit losses was $5.6 million, down from $7.7 million a year ago.
- Record operating earnings per share of $1.09, a 23.9% increase year over year.
- Total operating revenues reached a quarterly high of $206.8 million, up 9.4% year over year.
- Management emphasizes their relentless focus on revenue growth, EPS, and tangible book value per share, which they believe are most correlated with share price performance.
- In Q2 2025, revenue increased 15.1%, adjusted EPS up 22.7%, and tangible book value per share rose 10.9% year-over-year.
- The company has achieved double-digit CAGR over the last decade on these metrics, outperforming peers.
- 1.28 million shares were repurchased in Q2 at an average price of $17.30.
- Allowance for credit losses was $78 million or 0.93% of gross loans, slightly down from Q1.
- Net charge-offs were $249,000 in Q2 compared to net recoveries in Q1; classified loans decreased to $73.42 million.
- Net earnings for Q2 2025 were $50.6 million or $0.36 per share, consistent with prior quarters, marking 193 consecutive quarters of profitability.
- Net interest income increased by $1.2 million from Q1 2025 to $111.6 million, with net interest margin stable at 3.31%.
- Noninterest expense decreased by $1.6 million to $57 million, improving the efficiency ratio to 45.6%.
- Noninterest income was $14.7 million, down $1.5 million from Q1 2025 due to absence of a $2.2 million gain on OREO sales.
- Return on average tangible common equity was 14.08% and return on average assets was 1.34%.
- Shareholders' equity increased by $11 million to $2.24 billion; tangible common equity ratio remained at 10%.
- Total deposits and customer repurchase agreements grew to $12.4 billion, up $123 million from Q1 2025 and $330 million year-over-year.
- Total loans declined slightly to $8.36 billion, with growth in commercial real estate and single-family loans offset by declines in C&I and dairy and livestock lines.
- Allowance for credit losses totaled $142.2 million or 1.34% of total loans, with total loss absorption capacity of $250.6 million or 2.36% of loans.
- Asset quality remained sound with nonperforming loans declining to 0.61% of total loans and net charge-offs at $2.5 million (9 basis points annualized).
- Asset quality remained strong with nonperforming loans declining to 0.61% of total loans and net charge-offs at $2.5 million or 9 basis points annualized.
- Capital ratios remain strong with Tier 1 capital at 14.6% and tangible common equity to tangible assets at 9.75%.
- Capital ratios remain strong with Tier 1 capital ratio at 14.6% and tangible common equity to tangible assets at 9.75%, and tangible book value per share increased 12% year-over-year to $17.19.
- Loan growth was strong at an annualized 6.4%, with production of $854 million and a robust pipeline of $921 million.
- Net income increased 36% sequentially to $42.7 million or $0.50 per share, with adjusted net income up 39% to $44.5 million or $0.52 per share.
- Net interest income grew 7% to $126.9 million, driven by loan growth and lower deposit costs.
- Net interest income rose 7% to $126.9 million, driven by loan growth and lower deposit costs, with net interest margin expanding 10 basis points to 3.58%.
- Net interest margin expanded 10 basis points to 3.58%, or 5 basis points excluding accretion on acquired loans.
- Noninterest expense was $91.7 million, including $2.4 million in merger-related expenses, with an adjusted efficiency ratio improving to 55.4%.
- Noninterest expense was $91.7 million, including $2.4 million merger-related expenses, with adjusted efficiency ratio improving from 59.5% to 55.4%.
- Noninterest income increased 10% year-over-year to $24.5 million excluding securities activity, supported by treasury management, wealth, and insurance businesses.
- Noninterest income increased 10% year-over-year to $24.5 million, supported by treasury management, wealth, and insurance businesses.
- Return on assets improved to 1.08%, and return on tangible common equity rose to 12.8%.
- Return on assets improved to 1.08%, return on tangible common equity to 12.8%, and the adjusted efficiency ratio improved to 55%.
- Deposit costs were managed below 2%, with cumulative deposit beta reaching mid-50% range, matching terminal beta from the rising rate cycle.
- Loan growth was strong, with commercial loans up about $3 billion year-to-date, and average loans up $1.6 billion period-end.
- Net charge-offs were $102 million, down 7% sequentially, with credit metrics improving for the sixth consecutive quarter.
- Net interest income grew 28% year-over-year and 4% sequentially, with net interest margin increasing 8 basis points to 2.66%.
- Noninterest income rose 10% year-over-year, driven by investment banking, commercial mortgage servicing, commercial payments, and wealth management.
- Pre-provision net revenue increased by $44 million sequentially, marking the fifth consecutive quarter of growth, with aggregate PPNR up over 60% since Q1 2024.
- Reported second quarter earnings per share of $0.35, with revenues up 21% year-over-year and expenses up about 6% excluding charitable contributions.
- Tangible book value per share increased 3% sequentially and 27% year-over-year.
- Core pretax pre-provision income increased from $28 million in Q2 2024 to $49 million in Q2 2025, a substantial year-over-year growth.
- Core deposits grew by $1.2 billion year-over-year, with deposit teams expanding their portfolios to approximately $2.2 billion, enabling the bank to reduce broker deposits and strengthen liquidity.
- Management emphasized the differentiation of their franchise through growth trajectory and talent attraction, highlighting a strategic focus on organic growth and deposit stability.
- The company reaffirmed its strategic focus on residential mortgage credit, emphasizing deep expertise in this area as a core competency.
- Recent acquisitions, including Palisades Group and HomeXpress, are aimed at enhancing capabilities in mortgage management, non-QM origination, and portfolio diversification.
- The firm is actively selling assets and releveraging securitizations to support liquidity and income, with a focus on Agency RMBS and MSRs to balance growth and risk.
- Allowance for credit losses increased to $43 million or 1.08% of total loans from $41.6 million or 1.05%.
- Common equity Tier 1 was 13.77%, up from 13.47% last quarter.
- Efficiency ratio adjusted for certain costs was 54.54%, improved from 55.48% last quarter.
- Loan-to-deposit ratio was 83.3%, up from 81.2% last quarter but down from 87.9% a year ago.
- Mortgage banking income was slightly up quarter-over-quarter excluding MSR mark-to-market volatility.
- Net income was $21.8 million or $0.48 per diluted share in the second quarter.
- Net interest margin improved 22 basis points year-over-year and decreased 3 basis points quarter-over-quarter.
- Noninterest expense was $1.1 million less than prior quarter, with strong expense discipline.
- Noninterest income grew with wealth management fees up 11.7% and service charges on deposits up 11.2%.
- Return on assets was 1.53%.
- Return on average tangible common equity was 15.29%.
- Second quarter earnings were impacted by $531,000 MSR mark-to-market losses and $810,000 merger-related expenses.
- Tangible equity ratio increased by 49 basis points from last quarter to 10.83%, and by 144 basis points year-over-year.
- Tax equivalent efficiency ratio was 54.54%.
- Total loans increased by $58.4 million from last quarter, driven by construction and lease portfolios.
Dafinchi