- Allowance for credit losses ratio increased slightly to 1.45%, with a $2.5 million provision driven by specific reserves and net charge-offs.
- Capital ratios remain strong with CET1 at 13.86% and Tier 1 leverage at 12.12%, tangible common equity to tangible assets at 9.98%, and tangible book value per share increased to $26.70.
- Deposits decreased by $53.6 million to $3.74 billion, with a shift toward more noninterest-bearing deposits, increasing their ratio to 26.7%.
- Loans held for investment grew by $23.1 million or 3% annualized to $3.1 billion, despite higher loan payoffs totaling $49.1 million in multifamily loans.
- Net interest income increased to $42.5 million from $38.5 million sequentially, with net interest margin (NIM) rising to 4.07% from 3.81%, partly due to the onetime interest recovery.
- Noninterest expense increased slightly to $33.5 million, driven by higher personnel and professional service costs.
- Noninterest income rose to $12.2 million from $10.6 million, mainly due to mortgage banking revenue increases and fair value adjustments.
- Second quarter diluted EPS was $0.86, up from $0.72 in the linked quarter, boosted by a $1.6 million onetime interest recovery related to a fully repaid nonaccrual loan.
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- Capital ratios increased quarter-over-quarter and the company remains well capitalized by all measures.
- Cost of deposits declined by 12 basis points to 2.01%, and loan yields were impacted by lower purchase loan accretion.
- Efficiency ratio improved to 58.7% in Q2 2025 from 60.5% in Q1 2025, excluding merger-related expenses.
- Fee income increased by $1.3 million quarter-over-quarter, representing 21% of operating revenue, led by wealth management fees.
- GAAP earnings were strong despite lingering merger-related expenses, with core earnings increasing.
- Net interest margin (NIM) increased to 4.07% in Q2 2025 from 4.00% in Q1 2025, with potential for further upside.
- Noninterest expense declined by approximately $600,000 in the quarter, including merger-related expenses and severance costs.
- Normalized EPS reached 1.04, adjusted ROA was 1.51%, and adjusted ROE was 15.1%, placing the company near the top of its peer group.
- Return on average assets was 1.51% and return on average equity was 15.12% for Q2 2025, up from 1.45% and 14.97% in Q1 2025 respectively.
- Total loans grew to $3.93 billion with commercial loans growing 2% annualized; deposits declined by $117 million.
- Compensation, general, administrative, and servicing expenses were marginally lower, with transaction expenses down by $5 million.
- Earnings available for distribution were $32.1 million or $0.39 per share, and economic net interest income was $69 million.
- Economic return on GAAP book value was 0.5% for the quarter and 9.8% year-to-date; economic net interest income return on average equity was 10.5%.
- GAAP net income for Q2 2025 was $14 million or $0.17 per share, with GAAP book value at $20.91 per share.
- Total leverage was 4.5:1, with recourse leverage at 1.8:1, increased due to higher investments in agency securities.
- Yield on average interest-earning assets was 6%, average cost of funds was 4.5%, resulting in a net interest spread of 1.5%.
- Balance sheet remained liquid and conservatively positioned with deposits increasing to $12.8 billion, partly due to FX effects.
- Butterfield reported net income of $53.3 million and core net income of $53.7 million in Q2 2025.
- Core earnings per share were $1.26 with a core return on average tangible common equity of 22.3%.
- Credit quality improved with negligible net charge-offs and nonaccrual loans decreasing to 2% of gross loans.
- Net interest income before provision for credit losses increased to $89.4 million, driven by higher average interest-earning assets but offset by lower treasury yields.
- Net interest margin (NIM) was 2.64%, a decline of 6 basis points from the prior quarter, partly due to early redemption of $100 million subordinated debt causing a 2 basis point one-time negative impact.
- Noninterest expenses were $91.4 million, higher than the prior quarter's $98.3 million, influenced by FX impacts, increased incentive accruals, and lower prior quarter healthcare costs.
- Noninterest income totaled $57 million, down $1.4 million linked quarter due to seasonal reductions in merchant and international money transfer volumes and foreign exchange revenue, partially offset by increased trust revenue.
- Commercial real estate payoffs totaled $235 million in Q3, causing a 1.5% headwind to loan growth.
- Deposits increased 53.8% year-over-year to $21.3 billion, fully funding loan growth.
- Efficiency ratio improved by 10 percentage points to 55%, reflecting expense synergies and cost control.
- Fee income grew 52% year-over-year driven by wealth management and post-acquisition customer base.
- GAAP net income was $81 million or $0.84 per share for Q3 2025.
- Net interest margin improved 58 basis points year-over-year to 3.53%.
- Reported net income excluding merger and restructuring expenses of $90 million, EPS of $0.94, a 68% increase year-over-year.
- Total assets increased 49% year-over-year to $27.5 billion, including $18.9 billion in total portfolio loans.
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