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.
Alternative private markets assets increased by $1.3 billion or 7%, mainly due to FX impact and net sales of $231 million.
Equity assets increased by $8.1 billion or 10% from the prior quarter, with second quarter equity net sales of $1.8 billion representing an organic growth rate just under 9%.
Federated Hermes ended Q2 2025 with record assets under management of $846 billion, driven by gains in equity strategies.
Fixed income assets decreased by about $800 million or 1% due mainly to net redemptions of $2.4 billion, partially offset by market valuations and FX gains of $1.6 billion.
MDT equity strategies had net sales of $3.8 billion in Q2, up from $3.3 billion in Q1, with strong performance rankings in Morningstar categories.
Money market fund assets reached a record high of $468 billion at the end of Q2, increasing by $3.1 billion despite seasonal factors.
Operating expenses increased mainly due to a VAT refund in Q1 not recurring, and compensation expenses rose due to higher incentive compensation and merit increases.
Q2 effective tax rate was 26.1%, expected to be in the 25% to 28% range for 2025.
The company repurchased approximately 1.5 million shares for about $64.5 million and approved a new share repurchase program for 5 million shares.
Total revenue for Q2 increased slightly from the prior quarter due to more days in the quarter and revenue from the Rivington acquisition, partially offset by lower performance fees and carried interest.
Dafinchi