Peoples Bancorp (US:PEBO)2025-07-28 18:13Executive Summary & Financial Highlights This section provides an overview of Peoples Bancorp Inc.'s Q2 2025 performance, highlighting key financial results, CEO commentary, and significant financial summaries Q2 2025 Performance Overview Peoples Bancorp Inc. reported a decrease in net income and diluted earnings per share for the second quarter of 2025 compared to both the linked quarter and the second quarter of 2024 Net Income and EPS Overview | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--------------------------- | :------ | :------ | :------ | | Net Income | $21.2M | $24.3M | $29.0M | | Earnings per Diluted Share | $0.59 | $0.68 | $0.82 | CEO Commentary Tyler Wilcox, President and CEO, expressed satisfaction with strong annualized loan growth and net interest margin expansion in Q2 2025, reiterating the company's focus on sustainable growth and strong shareholder returns - CEO Tyler Wilcox highlighted strong annualized loan growth and net interest margin expansion in Q2 2025, with a continued focus on sustainable growth and strong shareholder returns2 Key Financial Summaries The company achieved an 11% annualized increase in total loan and lease balances and a 3% increase in net interest income quarter-over-quarter, driven by lower funding costs and an expanded net interest margin of 4.15% Q2 2025 Key Financial Highlights (QoQ) | Metric | Q2 2025 vs Q1 2025 | | :-------------------------------------- | :----------------- | | Period-end total loan and lease balances | +$173.1M (11% annualized) | | Net interest income | +$2.3M (3%) | | Net interest margin | 4.15% (vs 4.12%) | | Provision for credit losses | $16.6M (vs $10.2M) | | EPS impact from provision | -$0.36 (vs -$0.22) | Detailed Financial Performance Analysis This section provides an in-depth analysis of the company's financial performance, covering net interest income, credit losses, non-interest income and expense, efficiency, and income tax Net Interest Income Net interest income increased quarter-over-quarter due to lower funding costs, leading to net interest margin expansion, but saw a modest increase year-over-year while net interest margin decreased Net Interest Income and Margin Trends | Metric | Q2 2025 | Q1 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :------------------ | :-------- | :-------- | :-------- | :-------- | :-------- | | Net Interest Income | $87.6M | $85.3M | $86.6M | $172.8M | $173.3M | | Net Interest Margin | 4.15% | 4.12% | 4.18% | 4.14% | 4.22% | | Accretion Income | $2.6M | $3.5M | $5.8M | $6.1M | $12.3M | | Accretion bps | 12 bps | 17 bps | 28 bps | 15 bps | 30 bps | - The increase in net interest income and margin QoQ was primarily driven by lower deposit and borrowing costs6[7](index=7&type=chunk] - The decrease in net interest margin YoY was due to reductions in loan yields, driven by lower accretion income, partially offset by lower funding costs67 Provision for Credit Losses The provision for credit losses significantly increased in Q2 2025 compared to both the linked quarter and the prior year, primarily driven by higher net charge-offs, increased reserves, and deteriorating economic forecasts Provision for Credit Losses and EPS Impact | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :----------------------------------- | :-------- | :-------- | :-------- | | Provision for Credit Losses | $16.6M | $10.2M | $5.7M | | EPS Impact from Provision | -$0.36 | -$0.22 | -$0.13 | - Key drivers for the increased provision in Q2 2025 included net charge-offs, increased reserves on individually-analyzed loans and North Star Leasing, a periodic refresh in CECL model loss drivers, deterioration in economic forecasts, and loan growth411[12](index=12&type=chunk] Net Gains and Losses The company reported net losses in Q2 2025, which improved compared to both the linked quarter and the prior year, consistently driven by repossessed assets Net Gains and Losses | Metric | Q2 2025 | Q1 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Net Loss | -$0.3M | -$0.4M | -$0.8M | -$0.6M | -$1.1M | - Net losses for all periods were primarily driven by losses on repossessed assets16[17](index=17&type=chunk] Total Non-interest Income, Excluding Net Gains and Losses Total non-interest income, excluding net gains and losses, decreased slightly quarter-over-quarter due to seasonal insurance income, but increased significantly year-over-year, primarily driven by higher lease income Non-Interest Income (Excluding Net Gains & Losses) Trends | Metric | Q2 2025 | Q1 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Total Non-interest Income (excl. gains) | -$0.3M QoQ| +$2.7M YoY| | +$4.0M (8%) 6M YoY | | | Insurance income (QoQ) | -$1.5M | | | | | | Lease income (QoQ) | +$0.7M | | | | | | Electronic banking income (QoQ) | +$0.4M | | | | | | Lease income (YoY) | | | +$2.0M | | | | Other non-interest income (YoY) | | | +$0.3M | | | - The QoQ decrease was primarily due to seasonal performance-based commissions in insurance income, partially offset by gains on terminated Vantage Financial leases and increased electronic banking income1819[20](index=20&type=chunk] - The YoY increase was driven by operating lease income, insurance income, and swap fee income1819[20](index=20&type=chunk] Total Non-interest Expense Total non-interest expense decreased quarter-over-quarter due to lower salaries and employee benefits and corporate expenses, but increased year-over-year, mainly driven by higher sales-based incentives and medical costs Total Non-Interest Expense Trends | Metric | Q2 2025 | Q1 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Total Non-interest Expense | -$0.4M QoQ| +$1.6M (2%) YoY | | +$3.9M (3%) 6M YoY | | | Salaries & employee benefits (QoQ) | -$0.9M | | | | | | Other non-interest expense (QoQ) | -$0.4M | | | | | | Professional fees (QoQ) | +$0.5M | | | | | | Data processing & software (QoQ) | +$0.4M | | | | | | Salaries & employee benefits (YoY) | | | +$2.3M | | | | Professional fees (YoY) | | | +$0.7M | | | | Data processing & software (YoY) | | | +$0.6M | | | - The QoQ decrease in salaries and employee benefits was due to annual expenses occurring in Q1, including stock-based compensation and HSA contributions2122[23](index=23&type=chunk] - The YoY increase was driven by higher sales-based incentives, medical costs, and payroll taxes2122[23](index=23&type=chunk] Efficiency Ratio The efficiency ratio improved quarter-over-quarter due to higher net interest income and lower non-interest expenses, but worsened for the first six months of 2025 compared to the prior year Efficiency Ratio Trends | Metric | Q2 2025 | Q1 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------- | :------ | :------ | :------ | :------ | :------ | | Efficiency Ratio| 59.3% | 60.7% | 59.2% | 60.0% | 58.6% | - The QoQ improvement was mainly a result of higher net interest income and lower non-interest expenses24[25](index=25&type=chunk] - The increase for the first six months of 2025 compared to the prior year was due to increased non-interest expense and lower net interest income24[25](index=25&type=chunk] Income Tax Expense Income tax expense decreased quarter-over-quarter primarily due to lower net income, while the effective tax rate remained relatively stable, with the prior year's Q2 rate being lower due to a one-time benefit Income Tax Expense and Effective Tax Rate | Metric | Q2 2025 | Q1 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :------------------ | :-------- | :-------- | :-------- | :-------- | :-------- | | Income Tax Expense | $6.2M | $7.0M | $6.9M | $13.3M | $15.1M | | Effective Tax Rate | 22.7% | 22.4% | 19.1% | 22.6% | 20.5% | - The decrease in income tax expense QoQ was primarily due to lower net income[26](index=26&type=chunk] - The lower effective tax rate in Q2 2024 was attributed to a $1.1 million one-time benefit from a prior year amended return[26](index=26&type=chunk] Balance Sheet and Asset Quality This section analyzes the company's balance sheet composition, including investment securities, loans, deposits, stockholders' equity, and asset quality metrics Investment Securities and Liquidity Available-for-sale investment securities balances decreased across all comparative periods, while held-to-maturity investment securities increased, driven by strategic purchases of higher-yielding, longer-duration securities Investment Securities Balances | Metric | June 30, 2025 | March 31, 2025 | Dec 31, 2024 | June 30, 2024 | | :-------------------------------------- | :------------ | :------------- | :----------- | :------------ | | Available-for-sale investment securities| -$22.2M QoQ | -$32.1M vs Dec | -$67.6M YoY | | | Held-to-maturity investment securities | +$146.6M QoQ | +$125.2M vs Dec| +$198.0M YoY | | Unrealized Losses on AFS Securities (Net of Tax) | Date | Amount | | :------------ | :----------- | | June 30, 2025 | $90.9M | | March 31, 2025| $96.6M | | June 30, 2024 | $112.7M | - Peoples maintains strong liquidity with $878.5 million in liquid and liquefiable assets and a total borrowing capacity of $607.5 million through FHLB, FRB, and federal funds[30](index=30&type=chunk] Loans and Leases Total loan and lease balances experienced strong annualized growth quarter-over-quarter, driven primarily by increases in commercial and industrial, residential real estate, and construction loans Total Loan and Lease Balances Growth | Period-end Comparison | Change in Total Loans & Leases | | :-------------------- | :----------------------------- | | June 30, 2025 vs March 31, 2025 | +$173.1M (11% annualized) | | June 30, 2025 vs Dec 31, 2024 | +$243.6M (4%) | | June 30, 2025 vs June 30, 2024 | +$276.2M (4%) | - Growth in the loan portfolio was primarily driven by increases in commercial and industrial loans (+$63.6M QoQ), residential real estate loans (+$29.8M QoQ), and construction loans (+$22.2M QoQ)5[31](index=31&type=chunk] Asset Quality Asset quality metrics remained stable, with improved delinquency trends, while nonperforming assets saw a slight QoQ increase but decreased YoY, and the allowance for credit losses significantly increased Key Asset Quality Metrics | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :-------------------------------------- | :------------ | :------------- | :------------ | | Loans considered current | 99.1% | 98.5% | 98.8% | | Total nonperforming assets | +$0.8M QoQ | -$2.0M YoY | | | Nonperforming assets as % of total loans & OREO | 0.71% | 0.71% | 0.77% | | Criticized loans | +$17.9M QoQ | +$4.5M YoY | | | Criticized loans as % of total loans | 3.70% | 3.52% | 3.79% | | Classified loans | +$1.2M QoQ | +$4.8M YoY | | | Classified loans as % of total loans | 1.89% | 1.93% | 1.90% | | Allowance for credit losses as % of total loans | 1.13% | 1.01% | 1.05% | | Allowance for credit losses as % of NPLs| 183.82% | 163.76% | 160.56% | Annualized Net Charge-offs | Period | Rate | | :----- | :------ | | Q2 2025| 0.43% | | Q1 2025| 0.52% | | Q2 2024| 0.27% | - The increase in criticized and classified loans was primarily driven by the downgrade of one commercial relationship and other loan downgrades37[38](index=38&type=chunk] Deposits Period-end total deposits decreased quarter-over-quarter due to seasonal governmental deposits and a strategic reduction in brokered deposits, partially offset by growth in retail certificates of deposit, but increased year-over-year Period-end Total Deposits Trends | Metric | June 30, 2025 | March 31, 2025 | Dec 31, 2024 | June 30, 2024 | | :-------------------------------------- | :------------ | :------------- | :----------- | :------------ | | Total Deposits | -$97.5M QoQ | +$47.0M vs Dec | +$339.4M (5%) YoY | | | Governmental deposits (QoQ) | -$52.5M | | | | | Money market deposits (QoQ) | -$39.8M | | | | | Brokered deposits (QoQ) | -$16.2M | | | | | Retail certificates of deposit (QoQ) | +$39.3M | | | | Uninsured Deposits and Collateralization | Date | Uninsured Deposits % of Total | Collateralized % of Uninsured | | :------------ | :---------------------------- | :---------------------------- | | June 30, 2025 | 26% | 32% | | March 31, 2025| 27% | 35% | | June 30, 2024 | 30% | 38% | - The decrease in governmental deposits was due to seasonality, while the decrease in brokered deposits was a strategic shift to lower-rate funding sources4142[43](index=43&type=chunk] - The increase in retail certificates of deposit was driven by promotional offerings4142[43](index=43&type=chunk] Stockholders' Equity Total stockholders' equity increased across all comparative periods, primarily driven by net income and a decrease in accumulated other comprehensive loss, partially offset by dividends paid Total Stockholders' Equity Trends | Metric | June 30, 2025 | March 31, 2025 | Dec 31, 2024 | June 30, 2024 | | :-------------------------- | :------------ | :------------- | :----------- | :------------ | | Total Stockholders' Equity | $1,153.4M | +$15.5M (1%) QoQ | +$41.8M (4%) vs Dec | +$75.5M (7%) YoY | | Net income (QoQ) | $21.2M | | | | | Decrease in AOCI (QoQ) | $5.4M | | | | | Dividends paid (QoQ) | $14.6M | | | | Company Information This section provides essential information about Peoples Bancorp Inc., including its profile, conference call details, explanation of non-US GAAP financial measures, and a safe harbor statement regarding forward-looking statements Company Profile Peoples Bancorp Inc. is a diversified financial services holding company based in Marietta, Ohio, with $9.5 billion in total assets and 145 locations across six states, offering a full range of banking, trust, investment, insurance, and premium financing solutions - Peoples Bancorp Inc. (NASDAQ: PEBO) is a diversified financial services holding company headquartered in Marietta, Ohio, with $9.5 billion in total assets and 145 locations across Ohio, West Virginia, Kentucky, Virginia, Washington D.C., and Maryland as of June 30, 2025[51](index=51&type=chunk] - The company provides banking, trust and investment, insurance, and premium financing solutions through its subsidiaries, including Peoples Bank, Peoples Insurance Agency, LLC, and Vantage Financial, LLC51[52](index=52&type=chunk] Conference Call Details Peoples Bancorp Inc. will host a conference call on July 22, 2025, at 11:00 a.m. Eastern Time, to discuss its second quarter 2025 results, with participation available via phone or webcast - A conference call to discuss Q2 2025 results will be held on July 22, 2025, at 11:00 a.m. ET, accessible via phone (866) 890-9285 and webcast on www.peoplesbancorp.com[53](index=53&type=chunk] Non-US GAAP Financial Measures Explanation The news release utilizes non-US GAAP financial measures, which management believes provide a clearer understanding of ongoing operations and enhance comparability with prior periods and peers - Management uses non-US GAAP financial measures to analyze performance and operational efficiency, believing they provide a greater understanding of ongoing operations and enhance comparability[54](index=54&type=chunk] - Non-US GAAP measures used include Core non-interest expense, Efficiency ratio, Tangible assets/equity/book value, Total non-interest income (excluding net gains and losses), Pre-provision net revenue, and Return on average tangible equity[56](index=56&type=chunk] Safe Harbor Statement & Risk Factors The report contains forward-looking statements subject to various risks and uncertainties, including interest rate policies, inflation, competitive pressures, regulatory changes, economic conditions, credit quality, and operational risks - Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including interest rate policies, inflationary pressures, business strategy implementation, and competitive pressures among financial institutions55[57](index=57&type=chunk] - Other significant risk factors include legislative or regulatory changes, local and national economic conditions, future credit quality, changes in accounting standards, adverse changes in financial markets, and operational risks such as cybersecurity attacks and system failures57[58](index=58&type=chunk] - The company encourages readers to understand forward-looking statements as strategic objectives rather than absolute targets and undertakes no obligation to update them, except as required by law[60](index=60&type=chunk] Financial Tables (Unaudited) This section presents unaudited financial tables, including per common share data, consolidated statements of income and balance sheets, selected financial information, provision for credit losses, supplemental data, and non-US GAAP reconciliations Per Common Share Data and Selected Ratios This section provides a summary of key per common share data and selected financial ratios, including basic and diluted earnings per share, cash dividends, book value, tangible book value, and various return and efficiency metrics Per Common Share Data and Selected Ratios | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | June 30, 2025 (6M) | June 30, 2024 (6M) | | :------------------------------------ | :------------ | :------------- | :------------ | :----------------- | :----------------- | | Earnings per common share: Basic | $0.60 | $0.69 | $0.83 | $1.29 | $1.67 | | Earnings per common share: Diluted | $0.59 | $0.68 | $0.82 | $1.28 | $1.66 | | Cash dividends declared per common share | $0.41 | $0.40 | $0.40 | $0.81 | $0.79 | | Book value per common share | $32.33 | $31.90 | $30.36 | $32.33 | $30.36 | | Tangible book value per common share | $21.18 | $20.68 | $18.91 | $21.18 | $18.91 | | Return on average stockholders' equity| 7.42 % | 8.79 % | 10.99 % | 8.09 % | 11.15 % | | Return on average tangible equity | 12.31 % | 14.66 % | 19.21 % | 13.46 % | 19.55 % | | Return on average assets | 0.92 % | 1.07 % | 1.27 % | 0.99 % | 1.29 % | | Efficiency ratio | 59.25 % | 60.68 % | 59.19 % | 59.96 % | 58.62 % | | Net interest margin | 4.15 % | 4.12 % | 4.18 % | 4.14 % | 4.22 % | | Dividend payout ratio | 68.90 % | 58.46 % | 48.94 % | 63.32 % | 47.69 % | Consolidated Statements of Income This section provides the detailed consolidated statements of income, outlining total interest income and expense, net interest income, provision for credit losses, various non-interest income and expense categories, and ultimately net income Consolidated Statements of Income (Selected Items) | Metric (in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | June 30, 2025 (6M) | June 30, 2024 (6M) | | :------------------------------------ | :------------ | :------------- | :------------ | :----------------- | :----------------- | | Total interest income | $126,407 | $124,542 | $130,770 | $250,949 | $258,363 | | Total interest expense | $38,830 | $39,287 | $44,157 | $78,117 | $85,110 | | Net interest income | $87,577 | $85,255 | $86,613 | $172,832 | $173,253 | | Provision for credit losses | $16,642 | $10,190 | $5,683 | $26,832 | $11,785 | | Total non-interest income | $26,880 | $27,099 | $23,704 | $53,979 | $49,483 | | Total non-interest expense | $70,362 | $70,787 | $68,758 | $141,149 | $137,223 | | Income before income taxes | $27,453 | $31,377 | $35,876 | $58,830 | $73,728 | | Income tax expense | $6,241 | $7,041 | $6,869 | $13,282 | $15,137 | | Net income | $21,212 | $24,336 | $29,007 | $45,548 | $58,591 | Consolidated Balance Sheets This section presents the consolidated balance sheets, detailing assets such as cash, investment securities, loans and leases, and goodwill, as well as liabilities including deposits and borrowings, and stockholders' equity Consolidated Balance Sheets (Selected Items, in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------------- | :------------ | :---------------- | | Total cash and cash equivalents | $186,075 | $217,664 | | Total investment securities | $2,019,054 | $1,918,487 | | Loans and leases, net | $6,526,908 | $6,294,655 | | Total assets | $9,540,608 | $9,254,247 | | Total deposits | $7,637,208 | $7,590,205 | | Total liabilities | $8,387,258 | $8,142,657 | | Total stockholders' equity | $1,153,350 | $1,111,590 | Selected Financial Information This section provides detailed selected financial information across multiple quarters, including the breakdown of the loan portfolio, total investment securities, various deposit categories, comprehensive asset quality metrics, and capital ratios Selected Financial Information (in thousands) | Metric | June 30, 2025 | March 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | June 30, 2024 | | :-------------------------------------- | :------------ | :------------- | :----------- | :----------- | :------------ | | Total loans and leases | $6,601,589 | $6,428,526 | $6,358,003 | $6,271,839 | $6,325,371 | | Total Investment Securities | $2,019,054 | $1,878,462 | $1,918,487 | $1,829,995 | $1,883,865 | | Total deposits | $7,637,208 | $7,734,749 | $7,590,205 | $7,483,157 | $7,297,774 | | Total nonperforming assets (NPAs) | $46,641 | $45,815 | $48,936 | $69,782 | $48,670 | | Criticized loans | $244,442 | $226,542 | $241,302 | $237,627 | $239,943 | | Classified loans | $125,014 | $123,842 | $128,815 | $133,241 | $120,180 | | Allowance for credit losses as % of NPLs| 183.82 % | 163.76 % | 148.13 % | 106.82 % | 160.56 % | | Common equity tier 1 capital ratio | 11.95 % | 12.10 % | 11.95 % | 11.80 % | 11.74 % | | Total stockholders' equity to total assets | 12.09 % | 12.31 % | 12.01 % | 12.31 % | 11.68 % | Provision for Credit Losses Information This table provides a detailed breakdown of the provision for credit losses, gross charge-offs, recoveries, and net charge-offs by loan type for the three and six months ended June 30, 2025, March 31, 2025, and June 30, 2024 Provision for Credit Losses and Net Charge-Offs (in thousands) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | June 30, 2025 (6M) | June 30, 2024 (6M) | | :-------------------------------------- | :------------ | :------------- | :------------ | :----------------- | :----------------- | | Total provision for credit losses | $16,642 | $10,190 | $5,683 | $26,832 | $11,785 | | Gross charge-offs | $7,829 | $8,760 | $4,607 | $16,589 | $8,481 | | Recoveries | $865 | $639 | $374 | $1,504 | $928 | | Net charge-offs | $6,964 | $8,121 | $4,233 | $15,085 | $7,553 | | Net Charge-Offs as % of average total loans (annualized) | 0.43 % | 0.52 % | 0.27 % | 0.48 % | 0.23 % | Supplemental Information This table provides supplemental operational data, including trust and brokerage assets under administration and management, mortgage loans serviced for others, and full-time equivalent employees for various periods Supplemental Information (in thousands) | Metric | June 30, 2025 | March 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | June 30, 2024 | | :-------------------------------------- | :------------ | :------------- | :----------- | :----------- | :------------ | | Trust assets under administration and management | $2,138,439 | $2,037,992 | $2,061,267 | $2,124,320 | $2,071,832 | | Brokerage assets under administration and management | $1,724,311 | $1,626,768 | $1,614,189 | $1,608,368 | $1,567,775 | | Mortgage loans serviced for others | $326,710 | $337,279 | $346,189 | $347,719 | $341,298 | | Employees (full-time equivalent) | 1,477 | 1,460 | 1,479 | 1,496 | 1,489 | Consolidated Average Balance Sheets and Net Interest Income These tables present the consolidated average balance sheets and net interest income, detailing average balances, income/expense, and yields/costs for earning assets and interest-bearing liabilities Consolidated Average Balance Sheets and Net Interest Income (Selected Items, in thousands) | Metric | June 30, 2025 (3M) | March 31, 2025 (3M) | June 30, 2024 (3M) | June 30, 2025 (6M) | June 30, 2024 (6M) | | :-------------------------------------- | :----------------- | :------------------ | :----------------- | :----------------- | :----------------- | | Total earning assets | $8,375,813 | $8,277,356 | $8,224,393 | $8,326,855 | $8,152,671 | | Total interest-bearing liabilities | $6,494,220 | $6,456,846 | $6,502,088 | $6,475,637 | $6,418,009 | | Net interest income/spread | $87,857 | $85,538 | $86,965 | $173,395 | $173,958 | | Net interest margin | 4.15 % | 4.12 % | 4.18 % | 4.14 % | 4.22 % | Non-US GAAP Financial Measures Reconciliation This section provides detailed reconciliations of various non-US GAAP financial measures to their most directly comparable US GAAP measures, including the efficiency ratio, tangible equity, tangible assets, tangible book value per common share, pre-provision net revenue, and adjusted annualized net income and return on average tangible equity Efficiency Ratio Reconciliation (in thousands) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | June 30, 2025 (6M) | June 30, 2024 (6M) | | :-------------------------------------- | :------------ | :------------- | :------------ | :----------------- | :----------------- | | Adjusted total non-interest expense | $68,151 | $68,574 | $65,971 | $136,725 | $131,648 | | Total non-interest income, excluding net gains and losses | $27,160 | $27,462 | $24,485 | $54,622 | $50,606 | | Net interest income on a fully tax-equivalent basis | $87,857 | $85,538 | $86,965 | $173,395 | $173,958 | | Adjusted revenue | $115,017 | $113,000 | $111,450 | $228,017 | $224,564 | | Efficiency ratio | 59.25 % | 60.68 % | 59.19 % | 59.96 % | 58.62 % | Tangible Equity and Assets Reconciliation (in thousands) | Metric | June 30, 2025 | March 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | June 30, 2024 | | :-------------------------------------- | :------------ | :------------- | :----------- | :----------- | :------------ | | Total stockholders' equity | $1,153,350 | $1,137,821 | $1,111,590 | $1,124,972 | $1,077,833 | | Less: goodwill and other intangible assets | $397,785 | $400,099 | $402,422 | $403,922 | $406,417 | | Tangible equity | $755,565 | $737,722 | $709,168 | $721,050 | $671,416 | | Total assets | $9,540,608 | $9,246,000 | $9,254,247 | $9,140,471 | $9,226,461 | | Less: goodwill and other intangible assets | $397,785 | $400,099 | $402,422 | $403,922 | $406,417 | | Tangible assets | $9,142,823 | $8,845,901 | $8,851,825 | $8,736,549 | $8,820,044 | | Tangible book value per common share | $21.18 | $20.68 | $19.94 | $20.29 | $18.91 | | Tangible equity to tangible assets | 8.26 % | 8.34 % | 8.01 % | 8.25 % | 7.61 % | Pre-provision Net Revenue Reconciliation (in thousands) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | June 30, 2025 (6M) | June 30, 2024 (6M) | | :-------------------------------------- | :------------ | :------------- | :------------ | :----------------- | :----------------- | | Income before income taxes | $27,453 | $31,377 | $35,876 | $58,830 | $73,728 | | Add: provision for credit losses | $16,642 | $10,190 | $5,683 | $26,832 | $11,785 | | Pre-provision net revenue | $44,375 | $41,930 | $42,340 | $86,305 | $86,636 |