Dafinchi AI

Old National Bancorp

ONB

Financial Services

3w

Early Closure and Impact of Bremer Bank Partnership

Old National closed its partnership with Bremer Bank two months earlier than expected, on May 1st, ahead of the original schedule.
The early close contributed to positive earnings momentum for 2025 and shortened the tangible book value earnback period by approximately half a year.
The partnership resulted in a larger balance sheet and improved capital position, with the CET1 ratio exceeding expectations at 10.74%.
Repositioning of Bremer's securities portfolio increased the book yield from 2.85% to 5.54%, reduced duration from 6.4 to 4.7, and improved RWA density from 19% to 13%.

CBZ

Financial Services

2w

Financial Performance Summary

Adjusted EBITDA increased by 128% or $66 million in the second quarter and more than doubled to $356 million in the first half.
Adjusted EBITDA margin was 17% in the quarter and 23% year-to-date, an increase of nearly 500 basis points versus last year.
Benefits and Insurance segment revenue was $102 million, up approximately 5%, with adjusted EBITDA up 21% and margin improving by 260 basis points.
Financial Services segment revenue was $570 million, up approximately 84%, with adjusted EBITDA more than doubling to $111 million and margin improving by 250 basis points.
Second quarter adjusted diluted earnings per share increased by 64% to $0.95 per share, and first half adjusted diluted earnings per share increased by 47% to $3.26 per share.
Second quarter interest expense was higher by $22 million compared to last year, driven by higher outstanding debt associated with the acquisition.
Second quarter revenue was $684 million, and first half revenue was $1.5 billion, a 63% and 66% increase, respectively, largely driven by the Marcum acquisition.
Second quarter tax expense was $7 million higher than last year, with an effective tax rate lower by approximately 240 basis points compared to last year.

FBP

Financial Services

3w

Financial Performance Summary

Allowance for loan losses increased slightly to $248.6 million, with a decrease in consumer loan allowance due to improved unemployment forecasts.
First BanCorp reported net income of $80 million for 2Q 2025, with a return on assets of 1.69% and net interest margin expansion to 4.56%.
Net interest income increased to $215.9 million, $3.5 million higher than last quarter, despite no fees from early loan cancellations this quarter.
Nonperforming assets remained flat at 68 basis points of total assets; net charge-offs decreased to 60 basis points from 68 basis points in 1Q.
Operating expenses were $123.3 million, stable quarter-over-quarter, with an efficiency ratio maintained at 50%.
Tangible book value per share increased 5% to $11.16; tangible common equity ratio expanded to 9.6% due to $41 million increase in investment portfolio fair value.
Total loans grew 6% linked quarter annualized, driven by strong commercial loan production in Puerto Rico and Florida.

Independent Bank Corp.

INDB

Financial Services

4w

Financial Performance Summary

Adjusted operating net income was $53.5 million or $1.25 diluted EPS, reflecting a 1.09% return on assets and 6.99% return on average common equity.
Core deposit growth was strong with non-time deposits up 3.6% year-over-year and 1.6% from the prior quarter.
Expenses increased 1.8% excluding merger costs, driven by salary increases, equity awards, and higher check and fraud losses.
Net interest margin (NIM) was 3.37%, higher than previous guidance due to asset repricing and reduced deposit costs.
Nonperforming loans decreased significantly from $89.5 million to $56.2 million, or 39 basis points of total loans.
Second quarter GAAP net income was $51.1 million with diluted EPS of $1.20, yielding a 1.04% return on assets and 6.68% return on average common equity.
Tangible book value per share increased by $0.99 during the quarter, including a $0.28 benefit from other comprehensive income.
Total loans increased modestly with C&I loans up 3.4% and CRE loans down 1.7%.

Bank of Hawaii Corporation

BOH

Financial Services

2w

Sustained Net Interest Margin (NIM) Expansion and Future Path

Bank of Hawaii's NIM has expanded for five consecutive quarters, with management confident in achieving a 250 basis point NIM by year-end.
The margin expansion is driven by fixed asset repricing and deposit remix, with expectations of continued improvement assuming stable rates.
Repricing opportunities on CDs could add 15-25 basis points, with beta increasing to over 30%, supporting margin growth.

OFG

Financial Services

4w

Financial Performance Summary

Capital ratios remained strong with CET1 at 13.99% and tangible common equity ratio at 10.20%.
Core revenues totaled $182 million, with total interest income of $194 million and interest expense of $42 million.
Net charge-offs were $13 million, down $7.6 million sequentially, with a net charge-off rate of 0.64%.
Net interest margin was 5.31%, slightly down from 5.42%, impacted by increased liquidity and wholesale funding.
Noninterest expenses were $94.8 million, in line with guidance of $95-96 million for 2025.
Record assets exceeded $12 billion and loans surpassed $8 billion, with strong loan origination and core deposit flows.
Return on average assets was 1.73% and return on average tangible common equity was 17%.
Second quarter earnings per share diluted was $1.15, a 6.5% increase year-over-year, driven by a 1.5% increase in total core revenue.
Tangible book value per share was $27.67, and efficiency ratio was 52%.

QCR Holdings, Inc.

QCRH

Financial Services

3w

Financial Performance Summary

Asset quality remained excellent with net charge-offs increasing due to fully reserved credits; provision for credit losses was stable.
Capital markets revenue improved 51% quarter-over-quarter to $10 million, though still below historical run rates.
Net interest income increased to $62 million, driven by margin expansion and strong loan growth.
Net interest margin (NIM) increased by 4 basis points to the high end of guidance, expanding 21 basis points over the past 5 quarters.
Noninterest expenses were well controlled at $49.6 million, slightly below guidance, supporting an adjusted ROAA of 1.29%.
QCR Holdings delivered strong second quarter earnings with a 13% EPS improvement over the first quarter.
Tangible book value per share grew by $1.64, reflecting 13% annualized growth for the quarter.
Tangible common equity to tangible assets ratio rose to 9.92%, and CET1 ratio increased to 10.43%, driven by strong earnings and consistent AOCI.

Peoples Bancorp Inc.

PEBO

Financial Services

3w

Financial Performance Summary

Accretion income declined to $2.6 million, contributing 12 basis points to net interest margin, down from 17 basis points in the prior quarter.
Allowance for credit losses grew $9.4 million to 1.13% of total loans, aligning closer to peer median of 1.17%.
Annualized loan growth was 11% compared to the linked quarter.
Annualized net charge-off rate improved to 43 basis points from 52 basis points, with small ticket leasing charge-offs declining but remaining elevated at 11.51%.
Book value per share grew 1%, and tangible book value per share increased 2% from the prior quarter.
Capital ratios declined slightly due to loan growth outpacing earnings net of dividends, but tangible equity to tangible assets ratio remained stable at 8.3%.
Classified loans declined slightly to 1.89% of total loans.
Deposit balances declined 1% due to seasonal factors, with retail CDs growing $39 million.
Deposit balances declined 1% or $98 million, with seasonal fluctuations in governmental deposits and growth in retail CDs.
Diluted earnings per share were $0.59 for Q2 2025.
Efficiency ratio improved to 59.3% from 60.7% in the prior quarter.
Fee-based income was relatively stable, with a 1% decline from the linked quarter due to annual performance-based insurance commissions recognized in Q1.
Investment portfolio grew by $140 million with higher yielding bonds at 5.3%, slightly above target range.
Investment portfolio grew by $140 million, with higher yielding bonds improving overall yield.
Loan growth was balanced across categories, including commercial and industrial, residential real estate, construction, commercial real estate, premium finance, and consumer indirect loans.
Loan portfolio delinquency improved with 99.1% current compared to 98.5% last quarter.
Loan to deposit ratio increased to 86% from 83% due to loan growth and seasonal deposit declines.
Net charge-offs were $7 million, down from $8.1 million in the prior quarter, with small ticket leasing charge-offs decreasing but still elevated.
Net interest income increased by over $2 million, with net interest margin expanding 3 basis points to 4.15%.
Noninterest expense declined 1% from the linked quarter to $70.4 million, within guided range.
Noninterest expense declined 1% from the prior quarter to $70.4 million, within guided range.
Nonperforming assets increased slightly to 49 basis points of total assets, driven by premium finance portfolio administrative delinquencies.
Pre-provision net revenue exceeded consensus estimates.
Provision for credit losses increased by $6.5 million to $16.6 million, driven by net charge-offs, increased reserves, CECL model refresh, and economic forecast deterioration.
Provision for credit losses totaled $16.6 million, up $6.5 million from the prior quarter, driven by net charge-offs and increased reserves.
Tangible equity to tangible assets ratio remained stable at 8.3%.

Old Second Bancorp, Inc.

OSBC

Financial Services

3w

Financial Performance Summary

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.

Horizon Bancorp, Inc.

HBNC

Financial Services

3w

Financial Performance Summary

Capital ratios and tangible book value per share increased linked quarter driven by improved profitability and strategic balance sheet repositioning.
Consumer loan balances decreased by $41 million due to strategic run down of indirect auto portfolio; residential mortgage lending modestly grew.
Credit quality remained strong with substandard loans at 1.29%, nonperforming loans at 54 basis points, and net charge-offs near $254,000 or 2 basis points for the quarter.
Horizon Bancorp reported strong second quarter 2025 earnings driven by core community banking franchise strength, significant net interest margin expansion, low net charge-offs of 2 basis points annualized, and improved ROAA and ROATCE metrics.
Loan growth was solid with net loans held for investment growing $75.5 million or 1.5% in the quarter and 6.2% annualized, led by commercial loans growth of $117 million (14.8% quarterly growth).
Net interest margin increased by 19 basis points to 3.23%, including 7 basis points of outsized interest recoveries; excluding recoveries, margin expanded driven by improved asset and liability mix and disciplined pricing.
Noninterest income was stable with seasonal strength in interchange fees and mortgage gain on sale; expenses were well managed at $39.4 million, with full year expense outlook now approximately flat versus 2024.
Reported earnings per share grew by 58% for the first six months of 2025 compared to the prior year.