- The bank increased quarterly dividend to $0.50 per share, a 14% rise, reflecting strong business performance.
- New share repurchase authorization of 1.5 million shares was announced, following the completion of the current program.
- Management emphasized a shift towards balancing capital return strategies, prioritizing dividends over aggressive buybacks.
- Discussions on potential M&A activity are ongoing, with a disciplined approach to pricing and private equity competition.
- The rebalancing aims to maintain a payout ratio around 108-110%, supporting long-term shareholder value.
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- The company has strategically repositioned its balance sheet to reduce asset sensitivity, aiming to drive consistent net interest income growth throughout interest rate cycles.
- Focus on enhancing ability to adapt to changing rates, with a clear long-term success plan.
- Reduced clinical health care exposure to 2.4% of ABR.
- Exited noncore asset classes at solid valuation levels.
- Focused on industrial, retail, and build-to-suit investments to maximize shareholder value.
- No plans to sell remaining clinical or office assets hastily, aiming for disciplined value maximization.
- Allowance for loan losses increased to $232 million or 127 basis points of total loans.
- Capital ratios remained strong with CET1 at 14.4% and TCE at 10.8%.
- Deposits grew 8% annualized with stable deposit costs.
- Deposits totaled $21.2 billion, increasing $424 million from prior quarter.
- Loan growth was 8% annualized, driven by profitable organic growth and strategic hiring.
- Loans increased by $385 million, led by commercial lending growth.
- Net income was $100.2 million or $0.50 per diluted share, with operating earnings of $0.41 per diluted share.
- Net interest income increased 7% from Q1 to $202 million ($206.8 million FTE).
- Net interest margin expanded by 21 basis points to 3.59%.
- Noninterest expense increased to $137 million due to higher operating expenses and merger-related costs.
- Noninterest income was $42.9 million compared to a loss in Q1 due to investment portfolio repositioning.
- Nonperforming loans improved to 30 basis points with no net charge-offs.
- Operating earnings were $81.7 million, a 21% increase from the first quarter.
- Operating efficiency ratio improved to 50.8% due to higher revenues and effective expense management.
- Operating return on average assets increased by 21 basis points to 1.3%.
- Operating return on average tangible equity rose from 11.7% to 13.6%.
- Provision for loan losses was $7.6 million, up from $6.6 million.
- Tangible book value per share increased 4% to $12.53.
- Total assets reached $25.5 billion, up 2% from March 31.
- Wealth management assets under management reached a record $8.7 billion.
- Average annualized loan growth was 5.3%, with average total deposits growing to over $37 billion.
- Capital ratios improved with CET1 ratio approaching 11%, tangible common equity at 8.5%, and tangible book value per share up 13% year-over-year to $11.14.
- Credit quality improved with total delinquency at 62 basis points, down 13 bps, and net charge-offs at 25 bps for the quarter.
- Efficiency ratio remained favorable at 54.8%.
- Linked-quarter revenue growth was 6.5%, driven by record net interest income of $347 million and noninterest income of $91 million.
- Net income available to common shareholders was $130.7 million, or $0.36 per share, in Q2 2025.
- Net interest margin expanded 16 basis points to 3.19%, the highest since Q4 2023.
- Noninterest income reached a record $91 million, more than doubling over the last 10 years.
- Operating noninterest expense was $246.2 million, with increases due to strategic hiring, technology investments, and mortgage down payment assistance program costs.
- Pre-provision net revenue rose 16% from prior quarter to $192 million.
- Provision expense was $24.9 million, supporting loan growth and charge-offs.
- Return on average tangible common equity was 14%.
- TrustCo's strategy over recent years has been to amass capital specifically to lend out during periods of favorable interest rates.
- The company has capitalized on rising loan demand and competitive borrowing conditions to increase lending activities.
- This approach has supported margin expansion and loan growth, with a focus on community lending.
- Adjusted non-interest expenses were $344 million, reflecting two months of Bremer operations, with positive operating leverage year over year.
- Adjusted non-interest income was $112 million, reflecting growth in wealth, mortgage, and capital markets.
- CET1 ratio was 10.74%, approximately 50 basis points higher than expected post-Bremer close.
- CET1 ratio was better than expected at 10.74%, about 50 basis points higher than modeled post-Bremer.
- Criticized and classified loans decreased by approximately 9% excluding Bremer, and allowance for credit losses improved by 8 basis points to 1.24%.
- Loan growth excluding Bremer was 3.7% annualized from last quarter, in line with guidance, with strong commercial and C&I loan production.
- Loan growth excluding Bremer was 3.7% annualized from last quarter, in line with guidance, with strong commercial and industrial loan production.
- Net charge-offs were 24 basis points, or 21 basis points excluding charge-offs on PCD loans, with non-accrual loans declining 5 basis points during the quarter.
- Net interest income and margin increased driven by Bremer, organic loan growth, and securities portfolio repositioning.
- Old National reported GAAP 2Q earnings per share of $0.34, with adjusted EPS of $0.53 excluding $0.19 of net merger-related expenses, representing an 18% increase over the prior quarter and 15% year over year.
- Tangible book value per share increased by 14% year over year despite the impact of the Bremer partnership.
- Total deposits increased by $13.3 billion, with core deposits ex-brokered up $11.6 billion.
- Achieved a 20% return on average tangible common equity and over 1.3% return on assets.
- Capital ratios strengthened with CET1 over 11%, increasing 28 basis points quarter-over-quarter.
- Core deposits grew 5.8% annualized excluding brokered deposits, with non-interest bearing deposits at 24% of core deposits.
- Credit metrics improved with a 6% reduction in criticized and classified loans and normalized charge-offs at 25 basis points.
- Efficiency ratio improved to below 50%, specifically a low 48% adjusted efficiency ratio.
- Reported GAAP earnings per share of $0.46 and adjusted EPS of $0.59, an 11% increase over prior quarter and 28% year-over-year growth.
- Tangible book value per share grew 4% linked quarter and 10% year-over-year.
- The company emphasizes ongoing relationship building and deposit growth as key strategies.
- Asset repricing is expected to benefit margins and earnings through 2026.
- Management highlights success in attracting new relationships across markets, with a focus on strengthening the balance sheet.
- Returned $320 million to shareholders in Q2, including $150 million in share repurchases.
- Raised dividend for the eighth consecutive quarter, maintaining a 40% payout ratio.
- Maintains a strong capital position with $1.4 billion excess capital, targeting $1.4 billion to $1.7 billion for the year.
- Capital deployment is seasonally higher in H2, with expectations of increased share repurchases.
Dafinchi