- Annualized net interest margin improved to 3.68%, up 25 basis points from the prior year and 11 basis points from Q1 2025.
- Capital position remained strong with total stockholders' equity at $622.4 million, representing 10.6% of total assets and a book value of $54.61 per share.
- Loan portfolio declined 3.3% to $4.6 billion due to higher loan payoffs, including a $30 million payoff on the last day of the quarter.
- Net income for Q2 2025 was $19.8 million or $1.72 per diluted common share, up from $17.0 million or $1.45 per share in Q2 2024.
- Net interest income increased to $51.0 million, an 8.9% improvement year-over-year, supported by higher loan and investment yields and lower funding costs.
- Noninterest expenses declined 3.9% year-over-year to $35.0 million, driven by lower legal and professional fees and reduced expenses on other real estate owned, partially offset by increased technology investments.
- Noninterest income decreased 16.5% year-over-year to $8.2 million, impacted by timing of tax credit partnership income and prior year software vendor termination income.
- Nonperforming assets were $8.1 million or 0.14% of total assets, with net recoveries on loans of $111,000 and no provision for credit losses on outstanding loans.
- The company redeemed $75 million of subordinated notes early, saving future interest costs, and repurchased nearly 176,000 shares in the quarter.
- Total deposits were $4.68 billion at quarter end, up 1.7% from December 31, 2024, but down 1.6% from Q1 2025, with brokered deposits and checking accounts increasing while retail CDs declined.
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- Average total deposits increased 6% year-over-year and 1% quarter-over-quarter to $7.6 billion.
- Commercial real estate concentration decreased to under 500% for the first time since Q3 2023.
- Criticized and classified loans to total loans improved to 108 basis points from 133 basis points prior quarter.
- GAAP and core net interest margin expanded 3 basis points quarter-over-quarter, with GAAP NIM at 2.54% and core NIM at 2.52%.
- GAAP earnings per share of $0.41 and core earnings per share of $0.32, increases of 128% and 78% year-over-year respectively.
- Net charge-offs totaled 15 basis points for the quarter, down from 27 basis points in the prior quarter.
- Noninterest-bearing deposits grew 6% year-over-year and 2% quarter-over-quarter to $875 million.
- Nonperforming assets stable at 70 to 75 basis points quarter-over-quarter.
- Pre-provision pretax net revenue of $23.1 million and core PPNR of $19 million reached highest levels since late 2022.
- Strong liquidity with $3.6 billion of undrawn lines and resources at quarter end.
- Tangible common equity grew by 25 basis points to 8.04%.
- Expanded full-year net interest margin to 7.34% and adjusted net interest margin to 5.92%, reflecting improved rate-related card expense management.
- Fourth quarter net income grew 16% with EPS up 26% to $1.69, supported by 13% growth in non-interest income.
- Liquidity remains strong with $2.3 billion available, higher than the prior year.
- Loans and leases grew to $4.7 billion, a 14% increase primarily from commercial finance verticals including renewable energy and asset-based lending.
- Net income for the year was $185.9 million, driven by a 10% increase in non-interest income compared to the previous year.
- Non-performing loans increased in the quarter but remain well collateralized; net charge-off rate for 2025 was 64 basis points, within historic range.
- Reported full-year earnings per diluted share of $7.87, representing 9% year-over-year growth and exceeding the high end of prior guidance.
- Return on average assets for the year was 2.46%, and return on average tangible equity was 38.75%, indicating strong profitability.
Dafinchi