First United (FUNC) - 2025 Q2 - Quarterly Results

Executive Summary & Q2 2025 Highlights First United Corporation achieved strong Q2 and H1 2025 financial results, marked by significant net income growth and improved net interest margin Second Quarter 2025 Performance Overview Q2 2025 net income increased to $6.0 million ($0.92 diluted EPS), driven by an increasing net interest margin and controlled funding costs Consolidated Net Income and Diluted EPS | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :----------------------------- | :------ | :------ | :------ | | Net Income, GAAP (millions) | $6.0 | $5.8 | $4.9 | | Diluted net income per share | $0.92 | $0.89 | $0.75 | - The $1.1 million increase in quarterly net income (YoY) was primarily due to a $1.5 million increase in net interest income, a $0.3 million decrease in provision for credit loss, and a $0.2 million increase in non-interest income, partially offset by higher non-interest and income tax expenses[6] - The CEO highlighted the strong second quarter, driven by increasing net interest margin, successful control of funding costs, and favorable loan portfolio interest income, with increased loan production and team expansion[3] Key Financial Highlights (Q2 2025 vs Q1 2025 & Q2 2024) Q2 2025 net interest margin was 3.65% (FTE), reflecting increased loan yields and stable funding costs, with strong loan production - Net interest margin (non-GAAP, FTE basis) was 3.65% for Q2 2025, driven by increased loan yields and stable funding costs[7] Q2 2025 Loan Originations | Loan Originations (Q2 2025) | Amount (millions) | | :---------------------------- | :---------------- | | Commercial Loans | $65.1 | | Residential Mortgages | $19.2 | Q2 2025 Provision Expense and Cash Dividend | Metric (Q2 2025) | Amount (millions) | | :--------------- | :---------------- | | Provision expense | $0.9 | | Cash dividend | $0.22 per share | - Compared to the linked quarter (Q1 2025), net income increased slightly due to higher net interest income and other operating income, partially offset by increased provision for credit losses and operating expenses[8] Six-Month Period 2025 Performance Overview H1 2025 net income significantly increased to $11.8 million ($1.81 diluted EPS), driven by higher net interest income and lower provision for credit losses Six-Month Period Net Income and Performance Ratios | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :----------------------------- | :--------------------------- | :--------------------------- | | Net Income (millions) | $11.8 | $8.6 | | Diluted net income per share | $1.81 | $1.31 | | Return on Average Assets | 1.20% | 0.89% | | Return on Average Equity | 12.78% | 10.48% | - The increase in net income for the first six months of 2025 was driven by a $3.7 million increase in net interest income and a $0.6 million decrease in provision for credit losses (due to a $1.1 million charge-off in 2024)[9] - Other operating income increased by $0.3 million, mainly from gains on residential mortgage sales and wealth management income, partially offset by a $0.3 million increase in operating expenses[9] Detailed Income Statement Analysis This section provides an in-depth analysis of First United Corporation's income statement components, including net interest income, non-interest income, non-interest expense, and income tax expense Net Interest Income and Net Interest Margin Net interest income grew significantly across all periods, driven by increased loan interest income from repricing and portfolio growth, with mixed interest expense management Net Interest Income and Loan Portfolio Growth (FTE Basis) | Metric (FTE Basis) | Q2 2025 vs Q2 2024 | Q2 2025 vs Q1 2025 | 6M 2025 vs 6M 2024 | | :----------------- | :----------------- | :----------------- | :----------------- | | Net Interest Income | +$1.5 million | +$0.7 million | +$3.7 million | | Loan Interest Income | +$2.1 million | +$0.5 million | +$4.6 million | | Average Loan Balances | +$74.1 million | +$6.3 million | +$74.7 million | | Overall Loan Yield | +26 bps | +6 bps | +36 bps | - Interest expense increased by $0.3 million YoY for Q2 2025, with deposit interest up $0.4 million (due to higher balances, despite lower rates) and long-term borrowings up $0.4 million, partially offset by a $0.5 million decrease in short-term borrowings due to BTFP repayment[10] Net Interest Margin (FTE Basis) for Six-Month Periods | Net Interest Margin (FTE Basis) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------ | :--------------------------- | :--------------------------- | | Net Interest Margin | 3.61% | 3.31% | Non-Interest Income Non-interest income consistently grew across all periods, primarily driven by increased wealth management income and residential mortgage sales gains Other Operating Income Trends | Metric (Other Operating Income, including net gains) | Q2 2025 vs Q2 2024 | Q2 2025 vs Q1 2025 | 6M 2025 vs 6M 2024 | | :------------------------------------------------- | :----------------- | :----------------- | :----------------- | | Total Increase | +$0.2 million | +$0.2 million | +$0.3 million | | Wealth Management Income | +$0.1 million | Stable | +$0.2 million | | Gains on Sales of Residential Mortgages | +$0.1 million | +$0.1 million | +$0.1 million | | Debit Card Income | Stable | +$0.1 million | Stable | - Wealth management income growth was attributed to higher market valuations, expanded client relationships, and increased annuity sales[13][15] - Gains on sales of residential mortgages increased due to higher production volumes year-over-year and quarter-over-quarter[13][14] Non-Interest Expense Operating expenses increased across all periods, driven by higher OREO expenses, data processing, professional services, and salaries, partially offset by lower occupancy costs Operating Expense Trends | Metric (Operating Expenses) | Q2 2025 vs Q2 2024 | Q2 2025 vs Q1 2025 | 6M 2025 vs 6M 2024 | | :-------------------------- | :----------------- | :----------------- | :----------------- | | Total Increase | +$0.6 million | +$0.4 million | +$0.3 million | | Net OREO Expenses | +$0.2 million | +$0.1 million | +$0.2 million | | Data Processing Fees | +$0.2 million | +$0.1 million | +$0.9 million | | Professional Services | +$0.1 million | +$0.1 million | +$0.1 million | | Salaries & Employee Benefits | +$0.1 million | N/A | +$0.2 million | - Net OREO expenses increased due to a gain on sale in Q2 2024 not recurring and increased costs associated with one OREO property in Q2 2025[16][17] - Salaries and employee benefits increased due to normal merit increases and higher stock compensation/401K expenses, partially offset by reduced life and health insurance costs[16][18] - Occupancy and equipment expenses decreased by $0.7 million for the six-month period due to accelerated depreciation from branch closures in Q1 2024[18] Income Tax Expense The effective income tax rate for the first six months of 2025 remained stable with a slight increase compared to the prior year Effective Income Tax Rate | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | | Effective Income Tax Rate | 24.7% | 24.3% | Balance Sheet Analysis This section analyzes First United Corporation's balance sheet, detailing changes in total assets, liabilities, deposits, loan portfolio, and shareholders' equity Total Assets Total assets grew to $2.0 billion at June 30, 2025, reflecting increases in the investment portfolio and gross loans, with stronger loan growth anticipated Total Assets and Portfolio Changes | Metric | June 30, 2025 (billions) | December 31, 2024 (billions) | Change (millions) | | :------------- | :----------------------- | :--------------------------- | :---------------- | | Total Assets | $2.0 | $1.973 | +$34.4 | | Investment Portfolio | N/A | N/A | +$9.6 | | Gross Loans | N/A | N/A | +$21.7 | - The investment portfolio increased as bonds were purchased to gain yield in anticipation of potential declines in long-term rates[20] - Management expects stronger loan growth in the second half of the year due to robust loan pipelines[20] Total Liabilities and Deposits Total liabilities increased due to higher total deposits, including brokered deposits, with shifts in deposit composition towards savings, money market, and retail time deposits Total Liabilities and Deposit Composition | Metric | June 30, 2025 (billions) | December 31, 2024 (billions) | Change (millions) | | :-------------------- | :----------------------- | :--------------------------- | :---------------- | | Total Liabilities | $1.8 | $1.777 | +$22.6 | | Total Deposits | N/A | N/A | +$39.4 | | Brokered Deposits | N/A | N/A | +$50.0 | | Savings & Money Market | N/A | N/A | +$25.5 | | Retail Time Deposits | N/A | N/A | +$3.9 | | Interest-Bearing Demand | N/A | N/A | -$39.1 | - The $50.0 million in new brokered deposits (average rate 4.24%) obtained in January 2025 were used to repay $50.0 million in overnight borrowings outstanding at December 31, 2024[21][26] - Decreases in interest-bearing demand deposits were primarily due to seasonal fluctuations in municipal accounts, and non-interest-bearing deposits decreased due to increased spending related to inflation[21][26] Loan Portfolio Gross loan portfolio expanded by $21.7 million since December 31, 2024, driven by commercial real estate and acquisition loans, despite decreases in other loan types, with strong Q2 production Loan Portfolio Changes by Type | Loan Type (in millions) | Change since March 31, 2025 | Change since December 31, 2024 | | :---------------------- | :-------------------------- | :----------------------------- | | Commercial | +$21.9 | +$21.9 | | 1 to 4 Family Mortgages | +$1.9 | +$3.2 | | Consumer | -$1.2 | -$3.4 | | Gross Loans | +$22.6 | +$21.7 | - Commercial real estate loans increased by $24.4 million and acquisition and development loans by $3.6 million since December 31, 2024[23] Q2 2025 Loan Production and Pipeline | Loan Production (Q2 2025) | Amount (millions) | | :------------------------ | :---------------- | | New Commercial Loans | $65.1 | | Commercial Loan Pipeline | $32.3 | | Unfunded Commercial Construction | $47.0 | | New Consumer Mortgage Loans | $19.2 | | In-house Portfolio Loan Pipeline | $11.4 | | Unfunded Residential Construction | $10.0 | Shareholders' Equity Shareholders' equity increased, raising book value per common share, primarily due to undistributed net income for the first half of 2025 Shareholders' Equity and Book Value Per Share | Metric | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Book value per share | $29.43 | $27.71 | | Diluted book value per share | $29.38 | $27.65 | | Basic outstanding shares | 6,494,611 | 6,471,096 | | Diluted outstanding shares | 6,506,493 | 6,485,119 | - The increase in book value was attributed to $8.9 million in undistributed net income for the first six months of 2025[27] Asset Quality This section evaluates First United Corporation's asset quality, focusing on the Allowance for Credit Losses, provision expense, non-performing assets, and charge-offs Allowance for Credit Losses and Provision Expense ACL increased due to loan growth and unfunded commitments; provision for credit losses decreased YoY but increased QoQ due to unfunded commitments Allowance for Credit Losses | Metric | June 30, 2025 (millions) | June 30, 2024 (millions) | December 31, 2024 (millions) | | :-------------------- | :----------------------- | :----------------------- | :--------------------------- | | Allowance for Credit Losses | $19.0 | $17.9 | $18.2 | Provision for Credit Losses | Metric | Q2 2025 (millions) | Q2 2024 (millions) | Q1 2025 (millions) | | :-------------------- | :----------------- | :----------------- | :----------------- | | Provision for Credit Losses | $0.9 | $1.2 | $0.7 | - The decreased provision expense YoY was primarily due to $1.1 million in charge-offs related to one non-accrual commercial loan relationship in 2024. The increased provision QoQ was due to a $22.6 million increase in unfunded loan commitments[28] ACL to Loans Outstanding Ratio | Ratio | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :-------------------------- | :------------ | :------------- | :------------ | | ACL to loans outstanding | 1.27% | 1.25% | 1.26% | Non-Performing Assets and Charge-Offs Asset quality remained strong with decreased non-accrual loans and a low net charge-off ratio, showing significant improvements in commercial and consumer loan charge-off rates Non-Accrual Loans and Loans in Foreclosure | Metric | June 30, 2025 (millions) | December 31, 2024 (millions) | | :-------------------- | :----------------------- | :--------------------------- | | Non-accrual loans | $3.8 | $4.9 | | Loans in foreclosure | $0.1 | $1.6 | Net Charge-Offs/Recoveries to Average Loans by Type | Ratio of Net (Charge Offs)/Recoveries to Average Loans (6 Months Ended) | 6/30/2025 | 6/30/2024 | | :------------------------------------------------------ | :-------- | :-------- | | Commercial Real Estate | 0.00% | 0.01% | | Acquisition & Development | 0.13% | 0.01% | | Commercial & Industrial | (0.25%) | (0.89%) | | Residential Mortgage | 0.01% | (0.01%) | | Consumer | (0.96%) | (2.02%) | | Total Net (Charge Offs)/Recoveries | (0.07%) | (0.25%) | - The decrease in non-accrual balances was related to principal reductions. Accruing loans past due 30 days or more decreased to 0.27% of the loan portfolio at June 30, 2025, from 0.32% at December 31, 2024[30][31] Company Information This section provides background on First United Corporation's structure and business, along with important disclosures regarding forward-looking statements About First United Corporation First United Corporation is a Maryland-chartered financial holding company, serving as the parent of First United Bank & Trust and its subsidiaries, including finance and real estate entities - First United Corporation is a Maryland corporation (chartered 1985) and a financial holding company registered with the Federal Reserve System[32] - Its primary business is being the parent company of First United Bank & Trust, First United Statutory Trust I & II, two consumer finance company subsidiaries (Oak First Loan Center, Inc. and OakFirst Loan Center, LLC), and two real estate holding subsidiaries (First OREO Trust and FUBT OREO I, LLC)[32] - The Bank also holds interests in partnerships for acquiring, developing, and operating low-income housing units in Garrett County and Allegany County, Maryland[32] Forward-Looking Statements Forward-looking statements are based on management's beliefs and objectives, subject to risks and uncertainties that could cause actual results to differ materially; investors should review SEC filings - Forward-looking statements are identified by terms such as 'anticipate,' 'estimate,' 'should,' 'expect,' 'believe,' and 'intend,' and represent management's beliefs and projections about the future[33] - These statements are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially[33] - Investors should refer to the 'Risk Factors' section in the Corporation's periodic reports filed with the SEC for a discussion of these risks[33] Financial Statements and Supplementary Data This section provides comprehensive unaudited financial statements and supplementary data, including income statements, balance sheets, quarterly trends, and non-GAAP reconciliations Unaudited Financial Highlights (Income Statement & Per Share Data) This section summarizes unaudited consolidated results of operations for the three and six months ended June 30, 2025 and 2024, including key income statement figures and per share data Consolidated Income Statement Highlights (in thousands) | (Dollars in thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Interest income | $24,871 | $23,113 | $48,933 | $45,011 | | Interest expense | $8,164 | $7,875 | $16,210 | $15,961 | | Net interest income | $16,707 | $15,238 | $32,723 | $29,050 | | Provision for credit losses | $860 | $1,194 | $1,516 | $2,140 | | Other operating income | $4,940 | $4,782 | $9,762 | $9,575 | | Net gains | $146 | $59 | $238 | $141 | | Other operating expense | $12,974 | $12,364 | $25,550 | $25,245 | | Income before taxes | $7,959 | $6,521 | $15,657 | $11,381 | | Income tax expense | $1,975 | $1,607 | $3,867 | $2,769 | | Net income | $5,984 | $4,914 | $11,790 | $8,612 | | Diluted net income per share | $0.92 | $0.75 | $1.81 | $1.31 | | Dividends declared per share | $0.22 | $0.20 | $0.44 | $0.40 | Key Performance Ratios (Year-to-Date) | Performance Ratios (Year to Date Period End, annualized) | June 30, 2025 | June 30, 2024 | | :------------------------------------------------------- | :------------ | :------------ | | Return on average assets | 1.20% | 0.89% | | Return on average shareholders' equity | 12.78% | 10.48% | | Net interest margin (Non-GAAP, FTE) | 3.61% | 3.31% | | Efficiency ratio - non-GAAP | 59.66% | 63.48% | Unaudited Financial Highlights (Balance Sheet & Capital Ratios) This section provides unaudited financial condition at period end, including key balance sheet items, capital ratios, and asset quality metrics for June 30, 2025, compared to December 31, 2024 Consolidated Balance Sheet Highlights (in thousands) | Financial Condition at period end (Dollars in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------------------------------- | :------------ | :---------------- | | Assets | $2,007,471 | $1,973,022 | | Earning assets | $1,789,747 | $1,758,665 | | Gross loans | $1,502,481 | $1,480,793 | | Investment securities | $279,541 | $269,991 | | Total deposits | $1,614,207 | $1,574,829 | | Shareholders' equity | $191,147 | $179,295 | Capital Ratios | Capital Ratios | June 30, 2025 | December 31, 2024 | | :----------------------------- | :------------ | :---------------- | | Tier 1 to risk weighted assets | 15.22% | 14.70% | | Common Equity Tier 1 to risk weighted assets | 13.32% | 12.79% | | Tier 1 Leverage | 12.08% | 11.88% | | Total risk based capital | 16.47% | 15.92% | Asset Quality Metrics | Asset Quality (Period End) | June 30, 2025 | December 31, 2024 | | :--------------------------------------- | :------------ | :---------------- | | Net charge-offs for the quarter | $(151) | $(362) | | Nonaccrual loans | $3,813 | $4,931 | | Total nonperforming loans and 90 day past due | $4,348 | $5,849 | | Allowance for credit losses to gross loans | 1.27% | 1.23% | | Non-performing assets to total assets | 0.51% | 0.59% | Quarterly Financial Trends (Income Statement & Per Share Data) This table presents historical quarterly income statement items and per share data from Q1 2024 to Q2 2025, illustrating trends in revenue, expenses, net income, and profitability Quarterly Income Statement and Per Share Trends (in thousands) | (Dollars in thousands, except per share data) | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | | :-------------------------------------------- | :------ | :------ | :------ | :------ | :------ | :------ | | Interest income | $24,871 | $24,062 | $23,725 | $23,257 | $23,113 | $21,898 | | Net interest income | $16,707 | $16,016 | $15,700 | $15,228 | $15,238 | $13,812 | | Net income | $5,984 | $5,806 | $6,186 | $5,771 | $4,914 | $3,698 | | Diluted net income per share | $0.92 | $0.89 | $0.95 | $0.89 | $0.75 | $0.56 | | Dividends declared per share | $0.22 | $0.22 | $0.22 | $0.22 | $0.22 | $0.20 | | Return on average assets | 1.20% | 1.19% | 1.06% | 0.99% | 0.89% | 0.76% | | Net interest margin (Non-GAAP, FTE) | 3.61% | 3.56% | 3.38% | 3.34% | 3.31% | 3.12% | | Efficiency ratio - non-GAAP | 59.66% | 59.95% | 61.31% | 62.46% | 63.48% | 65.71% | Quarterly Financial Trends (Balance Sheet & Asset Quality) This table presents historical quarterly balance sheet items, capital ratios, and asset quality metrics from Q1 2024 to Q2 2025, highlighting trends in financial condition and risk management Quarterly Balance Sheet and Asset Quality Trends (in thousands) | Financial Condition at period end (Dollars in thousands) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | | :------------------------------------------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | :------------- | | Assets | $2,007,471 | $1,979,753 | $1,973,022 | $1,916,126 | $1,868,599 | $1,912,953 | | Gross loans | $1,502,481 | $1,479,869 | $1,480,793 | $1,447,883 | $1,422,975 | $1,412,327 | | Total deposits | $1,614,207 | $1,623,574 | $1,574,829 | $1,540,395 | $1,537,071 | $1,563,453 | | Shareholders' equity | $191,147 | $183,694 | $179,295 | $173,979 | $164,177 | $165,481 | | Tier 1 to risk weighted assets | 15.22% | 14.87% | 14.70% | 14.61% | 14.51% | 14.58% | | Nonaccrual loans | $3,813 | $4,026 | $4,931 | $8,073 | $9,438 | $16,007 | | Total nonperforming loans and 90 day past due | $4,348 | $4,259 | $5,849 | $8,611 | $9,964 | $16,127 | | Allowance for credit losses to gross loans | 1.27% | 1.25% | 1.23% | 1.24% | 1.26% | 1.27% | | Non-performing assets to total assets | 0.51% | 0.51% | 0.59% | 0.60% | 0.69% | 1.07% | Consolidated Statement of Condition This table presents the unaudited consolidated statement of condition for First United Corporation as of June 30, 2025, March 31, 2025, and December 31, 2024, detailing assets, liabilities, and shareholders' equity Consolidated Statement of Condition (in thousands) | (Dollars in thousands - Unaudited) | June 30, 2025 | March 31, 2025 | December 31, 2024 | | :--------------------------------- | :------------ | :------------- | :---------------- | | Total Assets | $2,007,471 | $1,979,753 | $1,973,022 | | Net loans | $1,482,904 | $1,460,945 | $1,462,181 | | Total deposits | $1,614,207 | $1,623,574 | $1,574,829 | | Total Liabilities | $1,816,324 | $1,796,059 | $1,793,727 | | Total Shareholders' Equity | $191,147 | $183,694 | $179,295 | Non-GAAP Financial Measures Reconciliation This section reconciles GAAP to non-GAAP financial measures, adjusting for accelerated depreciation from branch closures to provide a clearer view of underlying operational performance - Management believes non-GAAP financial measures provide investors with a greater understanding of the Company's operating results, but should not be viewed as a substitute for GAAP results[45] Reconciliation of Net Income and EPS (Non-GAAP) | (in thousands, except for per share amount) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income - as reported | $5,984 | $4,914 | $11,790 | $8,612 | | Accelerated depreciation expenses | — | — | — | $562 | | Income tax effect of adjustments | — | — | — | $(137) | | Adjusted net income (non-GAAP) | $5,984 | $4,914 | $11,790 | $9,037 | | Diluted earnings per share - as reported | $0.92 | $0.75 | $1.81 | $1.31 | | Adjusted diluted earnings per share (non-GAAP) | $0.92 | $0.75 | $1.81 | $1.37 | Reconciliation of Performance Ratios (Non-GAAP) | Significant Ratios (As of or for the six months ended June 30) | 2025 | 2024 | | :------------------------------------------------------------- | :------ | :------ | | Return on Average Assets - as reported | 1.20% | 0.89% | | Adjusted Return on Average Assets (non-GAAP) | 1.20% | 0.98% | | Return on Average Equity - as reported | 12.78% | 10.48% | | Adjusted Return on Average Equity (non-GAAP) | 12.78% | 11.52% | Average Balances, Interest Income/Expense, and Rates (Q2 2025 vs Q2 2024) This table details average balances, interest income/expense, and rates for earning assets and interest-bearing liabilities for Q2 2025 vs Q2 2024, illustrating net interest income and margin drivers Average Balances, Interest Income/Expense, and Rates (Q2 Comparison, in thousands) | (dollars in thousands) | Q2 2025 Average Balance | Q2 2025 Interest | Q2 2025 Average Yield/Rate | Q2 2024 Average Balance | Q2 2024 Interest | Q2 2024 Average Yield/Rate | | :--------------------- | :---------------------- | :--------------- | :------------------------- | :---------------------- | :--------------- | :------------------------- | | Loans | $1,489,485 | $22,304 | 6.01% | $1,415,353 | $20,237 | 5.75% | | Total earning assets | $1,841,112 | $24,925 | 5.43% | $1,763,917 | $23,171 | 5.28% | | Total deposits | $1,197,770 | $6,788 | 2.27% | $1,124,497 | $6,398 | 2.29% | | Total interest-bearing liabilities | $1,338,510 | $8,164 | 2.45% | $1,267,326 | $7,875 | 2.50% | | Net interest income and spread | | $16,761 | 2.98% | | $15,296 | 2.78% | | Net interest margin | | | 3.65% | | | 3.49% | Average Balances, Interest Income/Expense, and Rates (YTD Q2 2025 vs YTD Q2 2024) This table provides average balances, interest income/expense, and rates for earning assets and interest-bearing liabilities for YTD Q2 2025 vs YTD Q2 2024, highlighting year-to-date performance Average Balances, Interest Income/Expense, and Rates (YTD Comparison, in thousands) | (dollars in thousands) | 6M 2025 Average Balance | 6M 2025 Interest | 6M 2025 Average Yield/Rate | 6M 2024 Average Balance | 6M 2024 Interest | 6M 2024 Average Yield/Rate | | :--------------------- | :---------------------- | :--------------- | :------------------------- | :---------------------- | :--------------- | :------------------------- | | Loans | $1,486,334 | $44,072 | 5.98% | $1,411,619 | $39,471 | 5.62% | | Total earning assets | $1,833,105 | $49,036 | 5.39% | $1,771,797 | $45,126 | 5.12% | | Total deposits | $1,194,439 | $13,471 | 2.27% | $1,119,104 | $12,663 | 2.28% | | Total interest-bearing liabilities | $1,336,791 | $16,210 | 2.45% | $1,278,703 | $15,960 | 2.51% | | Net interest income and spread | | $32,826 | 2.94% | | $29,166 | 2.61% | | Net interest margin | | | 3.61% | | | 3.31% |