Home Bancorp(HBCP) - 2025 Q2 - Quarterly Results

Executive Summary & Highlights Home Bancorp, Inc. reported strong Q2 2025 financial results, with increased net income, diluted EPS, and a dividend hike, alongside growth in loans and deposits Q2 2025 Financial Performance Overview Home Bancorp, Inc. reported strong financial results for the second quarter of 2025, with net income increasing to $11.3 million, or $1.45 diluted EPS, up from the previous quarter. The company also announced a 7% increase in its quarterly dividend | Metric | Q2 2025 | Q1 2025 | Change (QoQ) | | :-------------------- | :-------- | :-------- | :----------- | | Net Income | $11.3M | $11.0M | +$0.366M | | Diluted EPS | $1.45 | $1.37 | +$0.08 | - The Board of Directors declared a quarterly cash dividend of $0.29 per share, representing a 7% increase[1][24] CEO's Commentary The CEO highlighted strong Q2 2025 results, attributing success to growth in loans and deposits, and an upward trend in net interest margin due to stable deposit and funding costs. Despite an increase in nonperforming and criticized loans, no losses are anticipated, and the company maintains a solid allowance for loan losses - Growth observed in loans and deposits, with net interest margin continuing its upward trajectory[2] - Increase in nonperforming and criticized loans at quarter-end, but no losses are anticipated[2] - Maintained a solid allowance for loan losses to total loans of 1.21%[2] Key Financial Highlights Key highlights for Q2 2025 include growth in loans and deposits, an increase in net interest income and net interest margin, and an increase in nonperforming assets primarily due to four loan relationships moved to nonaccrual status | Metric | Q2 2025 (June 30) | Q1 2025 (March 31) | Change (QoQ) | | :-------------------------- | :------------------ | :----------------- | :----------- | | Loans | $2.8B | $2.78B | +0.6% | | Deposits | $2.9B | $2.827B | +2.9% | | Net Interest Income | $33.4M | $31.7M | +5% | | Net Interest Margin (NIM) | 4.04% | 3.91% | +13 bps | | Nonperforming Assets (NPAs) | $25.4M (0.73% of assets) | $21.5M (0.62% of assets) | +18% | | Provision for Loan Losses | $489K | $394K | +24% | - The increase in nonperforming assets was primarily due to four loan relationships moved to nonaccrual status[3] Loan Portfolio Analysis The Company's loan portfolio grew by 0.6% driven by commercial real estate, while nonperforming assets increased, though the allowance for loan losses remained stable Loan Portfolio Composition and Changes The Company's total loans increased by $17.3 million, or 0.6%, to $2.8 billion at June 30, 2025. Growth was primarily driven by commercial real estate loans, partially offset by declines in construction and land loans and commercial and industrial loans in specific markets | Loan Category (in thousands) | 6/30/2025 | 3/31/2025 | Increase (Decrease) | % Change | | :--------------------------- | :---------- | :---------- | :------------------ | :------- | | Real estate loans: | | | | | | One- to four-family first | $504,145 | $504,356 | $(211) | — % | | Home equity loans and lines | $81,178 | $77,417 | $3,761 | 5 % | | Commercial real estate | $1,218,168 | $1,193,364 | $24,804 | 2 % | | Construction and land | $324,574 | $346,987 | $(22,413) | (6) % | | Multi-family residential | $183,809 | $183,792 | $17 | — % | | Total real estate loans | $2,311,874 | $2,305,916 | $5,958 | — % | | Other loans: | | | | | | Commercial and industrial | $421,997 | $411,363 | $10,634 | 3 % | | Consumer | $30,667 | $29,998 | $669 | 2 % |\ | Total other loans | $452,664 | $441,361 | $11,303 | 3 % | | Total loans | $2,764,538 | $2,747,277 | $17,261 | 1 % | - The average loan yield increased by 7 basis points to 6.50% for Q2 2025, driven by higher rates on new loans[5] - Growth in commercial real estate loans was partially offset by declines in construction and land loans (Houston and New Orleans markets) and commercial and industrial loans (Acadiana, Baton Rouge, and Houston markets)[5] Credit Quality and Allowance for Credit Losses Nonperforming assets increased by 18% to $25.4 million, primarily due to four loan relationships moved to nonaccrual status. The Company recorded a higher provision for loan losses of $489,000, mainly due to loan growth, while the allowance for loan losses remained stable at 1.21% of total loans | Metric (in thousands) | 6/30/2025 | 3/31/2025 | Change (QoQ) | % Change | | :-------------------- | :-------- | :-------- | :----------- | :------- | | Nonperforming Assets | $25,400 | $21,500 | +$4,000 | +18% | | NPAs as % of total assets | 0.73% | 0.62% | +0.11% | | | Net Loan Charge-offs | $335 | $32 | +$303 | +947% | | Provision for Loan Losses | $489 | $394 | +$95 | +24% | | Allowance for Loan Losses | $33,400 | $33,300 | +$100 | +0.3% | | ALLL as % of total loans | 1.21% | 1.21% | 0% | | - The increase in NPAs was primarily due to four loan relationships totaling $6.2 million placed on nonaccrual status[6] Nonperforming Assets and Loans Nonperforming assets increased to $25.4 million, with nonaccrual loans being the primary driver, particularly in one-to-four family first mortgages, commercial real estate, and construction and land loans | Nonaccrual Loan Category (in thousands) | 6/30/2025 | 3/31/2025 | Change (QoQ) | | :-------------------------------------- | :-------- | :-------- | :----------- | | One- to four-family first mortgage | $6,272 | $6,368 | $(96) | | Home equity loans and lines | $1,033 | $372 | +$661 | | Commercial real estate | $7,669 | $4,349 | +$3,320 | | Construction and land | $6,103 | $5,584 | +$519 | | Multi-family residential | $916 | $930 | $(14) | | Commercial and industrial | $1,312 | $1,206 | +$106 | | Consumer | $35 | $161 | $(126) | | Total nonaccrual loans | $23,340 | $18,970 | +$4,370 | | Accruing loans 90+ days past due | $12 | $77 | $(65) | | Total nonperforming loans | $23,352 | $19,047 | +$4,305 | | Foreclosed assets and ORE | $2,077 | $2,424 | $(347) | | Total nonperforming assets | $25,429 | $21,471 | +$3,958 | | Ratio | 6/30/2025 | 3/31/2025 | | :---------------------------------- | :-------- | :-------- | | Nonperforming assets to total assets | 0.73 % | 0.62 % | | Nonperforming loans to total assets | 0.67 % | 0.55 % | | Nonperforming loans to total loans | 0.84 % | 0.69 % | Allowance for Loan Losses and Credit Quality Classifications The allowance for loan losses remained at 1.21% of total loans, with a provision of $489,000 in Q2 2025. The loan portfolio's credit quality showed an increase in substandard loans, particularly in commercial real estate | Metric (in thousands) | 6/30/2025 | 3/31/2025 | Change (QoQ) | | :-------------------- | :-------- | :-------- | :----------- | | Beginning ALLL Balance | $33,278 | $32,916 | +$362 | | Provision for loan losses | $489 | $394 | +$95 | | Net charge-offs | $(335) | $(32) | $(303) | | Ending ALLL Balance | $33,432 | $33,278 | +$154 | | ALLL to total loans | 1.21% | 1.21% | 0% | | Loan Category (in thousands) | Substandard (6/30/2025) | Substandard (3/31/2025) | Change (QoQ) | | :--------------------------- | :---------------------- | :---------------------- | :----------- | | One- to four-family first | $6,741 | $6,842 | $(101) | | Home equity loans and lines | $1,033 | $372 | +$661 | | Commercial real estate | $31,367 | $18,444 | +$12,923 | | Construction and land | $6,232 | $5,714 | +$518 | | Multi-family residential | $1,237 | $1,256 | $(19) | | Commercial and industrial | $3,166 | $3,621 | $(455) | | Consumer | $35 | $160 | $(125) | | Total Substandard | $49,811 | $36,409 | +$13,402 | | Ratio | 6/30/2025 | 3/31/2025 | | :-------------------------------------- | :-------- | :-------- | | Allowance for loan losses to nonperforming assets | 131.47 % | 154.99 % | | Allowance for loan losses to nonperforming loans | 143.17 % | 174.72 % | | Allowance for credit losses to total loans | 1.27 % | 1.31 % | Investment Securities The investment securities portfolio decreased by 2% to $394.5 million, with an improved net unrealized loss position and a significant portion pledged for public deposits Investment Securities Portfolio The investment securities portfolio decreased by 2% to $394.5 million at June 30, 2025. The Company's net unrealized loss position improved, decreasing from $34.0 million to $30.2 million. Approximately 36% of the portfolio was pledged to secure public deposits | Metric (in thousands) | 6/30/2025 | 3/31/2025 | Change (QoQ) | % Change | | :-------------------- | :-------- | :-------- | :----------- | :------- | | Total Investment Securities | $394,500 | $401,600 | $(7,100) | (2)% | | Net Unrealized Loss | $(30,200) | $(34,000) | +$3,800 | -11.2% | | Securities Purchases | $4,500 | $2,900 | +$1,600 | +55.2% | | Investment Type (in thousands) | Amortized Cost | Fair Value | | :----------------------------- | :------------- | :--------- | | Available for sale: | | | | U.S. agency mortgage-backed | $280,484 | $258,925 | | Collateralized mortgage obligations | $68,080 | $66,615 | | Municipal bonds | $53,240 | $46,942 | | U.S. government agency | $16,863 | $16,338 | | Corporate bonds | $4,985 | $4,642 | | Total available for sale | $423,652 | $393,462 | | Held to maturity: | | | | Municipal bonds | $1,065 | $1,066 | | Total held to maturity | $1,065 | $1,066 | - Approximately 36% of the investment securities portfolio was pledged to secure public deposits at June 30, 2025[13] Deposits Total deposits grew by 3% to $2.9 billion, driven by demand and certificates of deposit, with uninsured deposits increasing but public funds fully collateralized Deposit Growth and Composition Total deposits grew by 3% to $2.9 billion at June 30, 2025, with a notable increase in demand deposits and certificates of deposit. Non-maturity deposits also saw a slight increase | Deposit Category (in thousands) | 6/30/2025 | 3/31/2025 | Increase (Decrease) | % Change | | :------------------------------ | :---------- | :---------- | :------------------ | :------- | | Demand deposits | $796,844 | $754,955 | $41,889 | 6 % | | Savings | $204,191 | $212,053 | $(7,862) | (4) % | | Money market | $463,332 | $464,659 | $(1,327) | — % | | NOW | $625,793 | $641,287 | $(15,494) | (2) % | | Certificates of deposit | $818,074 | $754,253 | $63,821 | 8 % | | Total deposits | $2,908,234 | $2,827,207 | $81,027 | 3 % | - Non-maturity deposits increased by $17.2 million, or 1%, during Q2 2025[14] - The average rate on interest-bearing deposits slightly increased by 1 basis point to 2.52% for Q2 2025[15] Deposit Customer Type and Uninsured Deposits The majority of deposits are sourced from individuals and small businesses. Uninsured deposits increased to $887.9 million, with public funds in excess of FDIC limits being fully collateralized | Customer Type | June 30, 2025 | March 31, 2025 | | :-------------- | :------------ | :------------- | | Individuals | 52% | 53% | | Small businesses | 38% | 36% | | Public funds | 7% | 8% | | Broker | 3% | 3% | | Total | 100% | 100% | | Metric (in thousands) | 6/30/2025 | 3/31/2025 | | :-------------------- | :-------- | :-------- | | Uninsured Deposits | $887,900 | $844,200 | - Public funds exceeding FDIC insurance limits are fully collateralized[17] Net Interest Income and Margin Net interest margin improved to 4.04% due to higher asset yields and lower liability costs, despite a slight increase in interest-bearing deposit costs Net Interest Income and NIM Trends Net interest margin (NIM) increased by 13 basis points to 4.04% in Q2 2025, primarily driven by an increase in average yield on interest-earning assets and a decline in the average cost of interest-bearing liabilities | Metric | Q2 2025 | Q1 2025 | Change (QoQ) | | :---------------- | :------ | :------ | :----------- | | Net Interest Margin | 4.04% | 3.91% | +13 bps | - The increase in NIM was primarily due to higher average yield on interest-earning assets and lower average cost for interest-bearing liabilities[18] Interest-Earning Assets and Interest-Bearing Liabilities The average cost of interest-bearing deposits slightly increased, reflecting higher non-maturity deposit balances. Average other interest-earning assets grew significantly due to increased cash and cash equivalents, while FHLB advances decreased due to paydowns | Metric | Q2 2025 | Q1 2025 | Change (QoQ) | | :-------------------------- | :------ | :------ | :----------- | | Average Cost of Interest-Bearing Deposits | 2.52% | 2.51% | +1 bp | | Average Other Interest-Earning Assets (in millions) | $71.1M | $55.9M | +27% | | Average FHLB Advances (in millions) | $114.0M | $180.6M | -37% | - Loan accretion income from acquired loans remained unchanged at $356,000 for Q2 2025[20] Noninterest Income and Expense Noninterest income decreased due to lower gains on loan sales, while noninterest expense increased, driven by other expenses and compensation, partially offset by a credit loss reversal Noninterest Income Noninterest income decreased by 7% to $3.7 million in Q2 2025, primarily due to lower gains on sale of loans and other income, partially offset by increases in bank card fees and service fees | Metric (in thousands) | Q2 2025 | Q1 2025 | Change (QoQ) | % Change | | :-------------------- | :------ | :------ | :----------- | :------- | | Total Noninterest Income | $3,716 | $4,009 | $(293) | (7)% | | Gain on sale of loans | $114 | $377 | $(263) | (70)% | | Other income | $227 | $458 | $(231) | (50)% | | Bank card fees | $1,750 | $1,578 | +$172 | +11% | | Service fees and charges | $1,345 | $1,309 | +$36 | +3% | Noninterest Expense Noninterest expense increased by 4% to $22.4 million in Q2 2025, mainly driven by higher other expenses (including a write-off of an acquired SBA accounts receivable) and compensation and benefits, partially offset by a reversal to the allowance for credit losses on unfunded commitments | Metric (in thousands) | Q2 2025 | Q1 2025 | Change (QoQ) | % Change | | :-------------------- | :------ | :------ | :----------- | :------- | | Total Noninterest Expense | $22,407 | $21,579 | +$828 | +4% | | Other expenses | $2,181 | $1,178 | +$1,003 | +85% | | Compensation and benefits | $13,322 | $12,652 | +$670 | +5% | | Reversal for credit losses on unfunded commitments | $(970) | $0 | $(970) | N/A | - The increase in other expenses was primarily due to a write-off of an acquired SBA accounts receivable for guarantees[22] Capital and Dividends Shareholders' equity increased by 1% due to earnings and reduced comprehensive loss, while the company declared a higher dividend and repurchased shares Shareholders' Equity and Capital Ratios Shareholders' equity increased by 1% to $408.8 million, driven by earnings and a decrease in accumulated other comprehensive loss, partially offset by dividends and share repurchases. Preliminary capital ratios remained strong | Metric (in thousands) | 6/30/2025 | 3/31/2025 | Change (QoQ) | % Change | | :-------------------- | :-------- | :-------- | :----------- | :------- | | Shareholders' Equity | $408,818 | $402,831 | +$5,987 | +1% | | Preliminary Tier 1 Leverage Capital Ratio | 11.47% | 11.48% | -0.01% | | | Preliminary Total Risk-Based Capital Ratio | 14.66% | 14.58% | +0.08% | | - The increase in shareholders' equity was primarily due to $11.3 million in earnings and a decrease in accumulated other comprehensive loss on available-for-sale investment securities[23] Dividend Declaration and Share Repurchases The Board of Directors declared a quarterly cash dividend of $0.29 per share, a 7% increase. The Company also repurchased 147,243 shares of common stock during the quarter, with additional shares remaining eligible under the repurchase plan | Metric | Q2 2025 | | :---------------------- | :-------- | | Quarterly Cash Dividend | $0.29/share | | Shares Repurchased | 147,243 | | Average Repurchase Price | $43.72/share | | Remaining Shares for Repurchase | 391,072 | | Metric | 6/30/2025 | 3/31/2025 | | :---------------------- | :-------- | :-------- | | Book Value Per Share | $52.36 | $50.82 | | Tangible Book Value Per Share | $41.54 | $40.13 | Conference Call Information Executive management will host a conference call on July 22, 2025, to discuss Q2 2025 results, with an investor presentation and replay available online Conference Call Details Executive management will host a conference call on July 22, 2025, at 10:30 a.m. CDT to discuss Q2 2025 results. An investor presentation and replay will be available on the Company's investor relations website - Conference call to discuss Q2 2025 results scheduled for Tuesday, July 22, 2025, at 10:30 a.m. CDT[26] - Dial-in numbers: 1.646.357.8785 (US Local/International) or 1.800.836.8184 (US Toll Free)[26] - Investor presentation, conference call replay, and transcript will be available on https://home24bank.investorroom.com[26](index=26&type=chunk)[27] Non-GAAP Financial Measures Reconciliation This section reconciles non-GAAP financial measures, which management uses for performance analysis, to their GAAP equivalents, emphasizing they are not substitutes Non-GAAP Reconciliation The report includes non-GAAP financial information, which management uses to analyze performance and believes provides useful insights for investors. This information, which excludes intangible assets, is reconciled to GAAP figures - Non-GAAP financial information is used by management for performance analysis and is believed to provide a fuller understanding of the Company's financial position and operating results[28] - Non-GAAP measures presented exclude intangible assets and should not be considered a substitute for GAAP financial information[28] | Metric (in thousands, except per share data) | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | | :------------------------------------------- | :-------- | :-------- | :--------- | :-------- | | Reported net income | $11,330 | $10,964 | $9,673 | $9,437 | | Non-GAAP tangible income | $11,543 | $11,195 | $9,923 | $9,696 | | Total assets | $3,491,455 | $3,485,453 | $3,443,668 | $3,441,990 | | Non-GAAP tangible assets | $3,406,973 | $3,400,702 | $3,358,624 | $3,356,629 | | Total shareholders' equity | $408,818 | $402,831 | $396,088 | $393,453 | | Non-GAAP tangible shareholders' equity | $324,336 | $318,080 | $311,044 | $308,092 | | Return on average equity | 11.24 % | 11.02 % | 9.71 % | 9.76 % | | Non-GAAP return on average tangible common equity | 14.48 % | 14.25 % | 12.70 % | 12.90 % | | Common equity ratio | 11.71 % | 11.56 % | 11.50 % | 11.43 % | | Non-GAAP tangible common equity ratio | 9.52 % | 9.35 % | 9.26 % | 9.18 % | | Book value per share | $52.36 | $50.82 | $48.95 | $48.75 | | Non-GAAP tangible book value per share | $41.54 | $40.13 | $38.44 | $38.17 | Forward-Looking Statements This section provides a disclaimer for forward-looking statements, noting their inherent risks and the Company's lack of obligation to update them Forward-Looking Statements Disclaimer This section provides a disclaimer regarding forward-looking statements, noting that they are subject to risks and uncertainties that could cause actual results to differ materially. The Company does not undertake to update these statements - Forward-looking statements are identified by words like 'believe,' 'expect,' 'anticipate,' and 'intend,' or future/conditional verbs[30] - Such statements are subject to risks and uncertainties, including those detailed in the Annual Report on Form 10-K, which could cause actual conditions or results to differ significantly[30] - The Company does not undertake to update forward-looking statements to reflect future circumstances or unanticipated events[30] Financial Statements This section presents the Company's condensed financial statements, including balance sheets, income statements, and detailed credit quality and net interest margin data, reflecting overall financial health Condensed Statements of Financial Condition The condensed statements of financial condition show a slight increase in total assets and shareholders' equity from Q1 2025 to Q2 2025, primarily driven by loan and deposit growth | Metric (in thousands) | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | | :-------------------- | :---------- | :---------- | :---------- | :---------- | :---------- | | Total Assets | $3,491,455 | $3,485,453 | $3,443,668 | $3,441,990 | $3,410,881 | | Total Loans, net of ALLL | $2,731,106 | $2,713,999 | $2,685,269 | $2,636,008 | $2,629,134 | | Total Deposits | $2,908,234 | $2,827,207 | $2,780,696 | $2,777,487 | $2,722,915 | | Total Liabilities | $3,082,637 | $3,082,622 | $3,047,580 | $3,048,537 | $3,035,051 | | Total Shareholders' Equity | $408,818 | $402,831 | $396,088 | $393,453 | $375,830 | Condensed Statements of Income The condensed statements of income show an increase in net income for Q2 2025 compared to Q1 2025 and Q2 2024, driven by higher net interest income despite increased provision for loan losses and noninterest expenses | Metric (in thousands, except per share data) | Q2 2025 | Q1 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :------------------------------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Total interest income | $48,629 | $47,201 | $45,458 | $95,830 | $89,584 | | Total interest expense | $15,278 | $15,452 | $16,065 | $30,730 | $31,290 | | Net interest income | $33,351 | $31,749 | $29,393 | $65,100 | $58,294 | | Provision for loan losses | $489 | $394 | $1,261 | $883 | $1,402 | | Total noninterest income | $3,716 | $4,009 | $3,755 | $7,725 | $7,304 | | Total noninterest expense | $22,407 | $21,579 | $21,808 | $43,986 | $42,676 | | Income tax expense | $2,841 | $2,821 | $1,961 | $5,662 | $4,203 | | Net income | $11,330 | $10,964 | $8,118 | $22,294 | $17,317 | | Earnings per share - diluted | $1.45 | $1.37 | $1.02 | $2.82 | $2.16 | | Cash dividends declared per common share | $0.27 | $0.27 | $0.25 | $0.54 | $0.50 | Summary Financial Information This section provides a summary of key earnings data, average balance sheet figures, per share data, and selected financial ratios, highlighting improvements in profitability and capital adequacy | Metric | Q2 2025 | Q1 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :---------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | | EARNINGS DATA (in thousands) | | | | | | | Net income | $11,330 | $10,964 | $8,118 | $22,294 | $17,317 | | AVERAGE BALANCE SHEET DATA (in thousands) | | | | | | | Total assets | $3,474,762 | $3,449,472 | $3,367,207 | $3,462,187 | $3,350,545 | | Total loans | $2,764,065 | $2,745,212 | $2,652,331 | $2,754,691 | $2,627,636 | | Total deposits | $2,863,683 | $2,772,295 | $2,716,957 | $2,818,241 | $2,698,933 | | Total shareholders' equity | $404,367 | $403,504 | $373,139 | $403,938 | $371,950 | | PER SHARE DATA | | | | | | | Diluted EPS | $1.45 | $1.37 | $1.02 | $2.82 | $2.16 | | Book value at period end | $52.36 | $50.82 | $46.51 | $52.36 | $46.51 | | Tangible book value at period end | $41.54 | $40.13 | $35.90 | $41.54 | $35.90 | | SELECTED RATIOS | | | | | | | Return on average assets | 1.31 % | 1.29 % | 0.97 % | 1.30 % | 1.04 % | | Return on average equity | 11.24 % | 11.02 % | 8.75 % | 11.13 % | 9.36 % | | Net interest margin | 4.04 % | 3.91 % | 3.66 % | 3.98 % | 3.65 % | | Tangible common equity ratio | 9.52 % | 9.35 % | 8.73 % | 9.52 % | 8.73 % | | Return on average tangible common equity | 14.48 % | 14.25 % | 11.73 % | 14.37 % | 12.56 % | Consolidated Net Interest Margin The consolidated net interest margin improved for both the three and six months ended June 30, 2025, primarily due to increased yields on interest-earning assets and managed costs of interest-bearing liabilities Three Months Ended: | Metric (TE) | 6/30/2025 | 3/31/2025 | 6/30/2024 | | :------------------ | :-------- | :-------- | :-------- | | Average Yield on Interest-earning assets | 5.92 % | 5.84 % | 5.70 % | | Average Rate on Interest-bearing liabilities | 2.71 % | 2.74 % | 2.93 % | | Net interest spread | 3.21 % | 3.10 % | 2.77 % | | Net interest margin | 4.04 % | 3.91 % | 3.66 % | Six Months Ended: | Metric (TE) | 6/30/2025 | 6/30/2024 | | :------------------ | :-------- | :-------- | | Average Yield on Interest-earning assets | 5.88 % | 5.65 % | | Average Rate on Interest-bearing liabilities | 2.72 % | 2.86 % | | Net interest spread | 3.16 % | 2.79 % | | Net interest margin | 3.98 % | 3.65 % | - Loans receivable contributed significantly to interest income, with average yields of 6.50% for Q2 2025 and 6.46% for the six months ended June 30, 2025[39][43] Summary Credit Quality Information This section details the Company's credit quality, showing an increase in nonperforming assets and loans, particularly nonaccrual loans. Despite this, the allowance for loan losses to total loans remained stable, and the allowance for credit losses provided strong coverage | Metric (in thousands) | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | | :-------------------- | :-------- | :-------- | :--------- | :-------- | :-------- | | Total nonaccrual loans | $23,340 | $18,970 | $13,582 | $18,055 | $16,817 | | Total nonperforming loans | $23,352 | $19,047 | $13,598 | $18,089 | $16,818 | | Total nonperforming assets | $25,429 | $21,471 | $15,608 | $18,356 | $17,049 | | Nonperforming assets to total assets | 0.73 % | 0.62 % | 0.45 % | 0.53 % | 0.50 % | | Allowance for loan losses (Ending balance) | $33,432 | $33,278 | $32,916 | $32,278 | $32,212 | | Provision for loan losses | $489 | $394 | $873 | $140 | $1,261 | | Net charge-offs | $(335) | $(32) | $(235) | $(74) | $(510) | | Allowance for loan losses to total loans | 1.21 % | 1.21 % | 1.21 % | 1.21 % | 1.21 % | | Allowance for loan losses to nonperforming loans | 143.17 % | 174.72 % | 242.07 % | 178.44 % | 191.53 % | | Year-to-date net loan charge-offs | $(367) | $(32) | $(1,036) | $(801) | $(727) | - The allowance for unfunded lending commitments decreased to $1.73 million at June 30, 2025, due to a reversal for credit losses[46]