- Post-merger, tangible book value per share increased by 9% to $24.57 as of June 30, 2025.
- Tangible equity ratio recovered to pre-merger levels within 10 months.
- Capital strength supports strategic growth initiatives and future M&A evaluations.
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- Adjusted EBITDA increased to $93 million, up approximately 8% year-over-year, with an adjusted EBITDA margin of 40.3%.
- Adjusted EPS of $0.89 was up 7% year-over-year, driven by strong adjusted EBITDA growth and lower interest expense, partially offset by higher tax expense and operating depreciation and amortization.
- Liquidity remains strong at approximately $485 million as of June 30.
- Operating cash flow for the first half of the year was approximately $86 million.
- Revenue for the second quarter was $230 million, an 8% increase over the prior year, while constant currency revenue was approximately $233 million, representing growth of 10%.
- Segment results: Merchant Acquiring revenue grew 4% year-over-year to $47.3 million with adjusted EBITDA margin of 42.3%. Payment Services Puerto Rico revenue increased 4% to $56.4 million with adjusted EBITDA margin of 58.5%. Latin America Payments & Solutions revenue was $86.1 million, up 15% year-over-year or 20% constant currency, with adjusted EBITDA margin of 27.1%. Business Solutions revenue increased 4% to $64.5 million but adjusted EBITDA declined 13% due to prior year nonrecurring project impact.
- Adjusted pretax pre-provision net revenue (PPNR) was $81 million, with an efficiency ratio improving to 53.3% on an adjusted basis.
- Allowance for loan losses increased to $185 million (1.5% of loans), reflecting acquisition-related provisions and organic loan growth.
- Net interest income increased 32.2% quarter-over-quarter to $147.2 million, driven by higher margin and portfolio additions.
- Net interest margin expanded 27 basis points to 3.95%, aided by Southern States' higher margin portfolios and purchase accounting accretion.
- Non-interest expense included $16.1 million merger-related costs; adjusted expenses increased due to combined operations but efficiency ratio improved.
- Non-interest income rose to $27.3 million adjusted, supported by mortgage banking, investment services, and fee income from Southern States.
- Reported EPS of $0.43 and adjusted EPS of $1.07 for Q3 2025, reflecting combined results post-merger with Southern States Bankshares.
- Return on average assets was 0.58% reported and 1.43% adjusted; return on tangible common equity was 5.82% reported and 14.7% adjusted.
- Adjusted EBITDA rose 32.1% to $114 million, with an improved margin of 15%, up 139 basis points.
- Adjusted EPS increased by 40.9% to $0.31 from $0.22, demonstrating strong operating leverage.
- Capital Markets revenues surged 37.9%, reflecting a 135% increase in total debt volumes compared to 38% industry growth, and investment sales volumes rose 26% versus 11% industry growth.
- Cash and cash equivalents ended at $195.8 million with net leverage of 1.4x; cash generated by the business was $133.9 million.
- Introduced adjusted free cash flow metric showing $228 million for the 12 months ended June 2025, a 121.4% year-over-year improvement.
- Leasing revenues increased 13.8%, led by double-digit growth in retail volumes and improving office activity in key gateway markets.
- Management services, servicing and other revenues grew 13.6%, driven by 30% growth in Valuation and Advisory and improvements in servicing and asset management.
- Newmark delivered strong revenue growth of 19.9% in Q2 2025, with total revenues reaching $759.1 million compared to $633.4 million a year earlier.
- The company repurchased approximately 10.8 million shares for $125.5 million at $11.58 per share, reducing fully diluted weighted average share count by 1.2% to 252.6 million.
- 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.
- 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.
- Book value per share grew 2%, tangible book value per share improved 4%.
- Diluted earnings per share of $0.83 for Q3 2025, improved compared to the linked quarter.
- Excluding accretion income, net interest margin expanded 5 basis points, marking the fifth straight quarter of core margin expansion.
- Net interest income increased nearly $4 million with net interest margin expanding by 1 basis point.
- Noninterest expenses declined 1%, improving efficiency ratio to 57.1% from 59.3%.
- Provision for credit losses declined over 50%, driven by net charge-offs, loan growth, and economic forecast adjustments.
- Quarterly net charge-off rate decreased by 2 basis points to 41 basis points annualized.
- Tangible equity to tangible assets ratio improved 27 basis points to 8.5%.
- From a $22 million asset bank in 1998 to nearly $23 billion today.
- Expansion from 5 employees to 2,600 and from one office to 217 across five states.
- Market cap growth from $4.5 million purchase price to nearly $6 billion.
- Ranked #64 in total assets among US banks and #35 in market value.
- Management emphasizes the company's long-term growth, profitability, and strong capital position.
- The company recognized $572,000 in expenses related to a significant contract renegotiation, which reduced after-tax net income by $444,000 in Q1 2026.
- Management expects an less than 18-month earn-back period for the renegotiation expenses due to increased revenues from bank card interchange income.
- The renegotiation was on a contingency basis and resulted in a favorable outcome, positively impacting future revenue streams.
- Approximately $1 million in consulting expenses related to the contract renegotiation have been recognized, reflecting strategic cost management efforts.
- Old National's acquisition of Bremer Bank has reintroduced market disruption in the Twin Cities, which historically has contributed to Bridgewater's growth through talent and client acquisition.
- Management expects this wave of disruption to continue providing opportunities for market share expansion and client onboarding.
- Early signs of traction in capturing new clients and talent are evident, with ongoing marketing efforts to position Bridgewater as a local bank of choice.
- The company is capitalizing on recent M&A activity among competitors to gain market share in Minnesota.
- Bankers are actively pursuing high-value business and retail deposits to strengthen their position.
- Regional markets are showing signs of growth despite broader economic uncertainty.
- Management reports that their disciplined calling approach and relationship focus are yielding positive results.
- The expansion of market share is a key strategic priority, supported by well-designed facilities and relationship-building efforts.
Dafinchi