Workflow
Old Second Bancorp(OSBC) - 2025 Q2 - Quarterly Results

Executive Summary Q2 2025 Financial Performance Overview Old Second Bancorp, Inc. reported net income of $21.8 million, or $0.48 per diluted share, for Q2 2025, showing an increase from Q1 2025 but a slight decrease from Q2 2024, with adjusted net income indicating stronger underlying operational performance Net Income and EPS (GAAP & Adjusted) (Dollars in millions) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :----------------------- | :------ | :------ | :------ | | Net Income (GAAP) | $21.8M | $19.8M | $21.9M | | Diluted EPS (GAAP) | $0.48 | $0.43 | $0.48 | | Adjusted Net Income (Non-GAAP) | $22.8M | $20.6M | $21.2M | | Adjusted Diluted EPS (Non-GAAP) | $0.50 | $0.45 | $0.46 | - Net income increased by $2.0 million QoQ, driven by a $1.7 million increase in interest and dividend income, a $697,000 increase in noninterest income, and a $1.1 million decrease in noninterest expense, partially offset by a $343,000 increase in interest expense and a $1.0 million increase in provision for income taxes2 - Net income decreased by $69,000 YoY, primarily due to a $5.5 million increase in noninterest expense and a $229,000 decrease in noninterest income, partially offset by a $4.5 million increase in net interest and dividend income and a $1.3 million decrease in provision for credit losses2 CEO Commentary and Strategic Outlook CEO Jim Eccher highlighted strong Q2 2025 results, emphasizing exceptional margin performance, disciplined operating efficiency, and a robust balance sheet, with the recent acquisition of Bancorp Financial, Inc. expected to enhance consumer lending capabilities and improve profitability - Key performance indicators for Q2 2025 included a Return on Average Assets (ROAA) of 1.53%, Return on Average Tangible Common Equity (ROATCE) of 15.29%, a tax-equivalent net interest margin of 4.85%, and an efficiency ratio of 55.99%10 - The balance sheet remains strong with a Common Equity Tier 1 ratio of 13.77%, a loan-to-deposit ratio of 83%, and cash and marketable securities exceeding 23% of total assets10 - On July 1, 2025, Old Second acquired Bancorp Financial, Inc., a $1.4 billion bank holding company, to add meaningful consumer lending capabilities and enhance balance sheet flexibility and profitability10 Financial Highlights & Key Metrics Income Statement Summary The income statement highlights show an increase in net interest income and net income QoQ, but a slight decrease in net income YoY, with provision for credit losses remaining stable QoQ but decreasing YoY Income Statement Summary (Dollars in thousands) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :------------------------ | :------------ | :------------- | :------------ | | Net interest income | $64,234 | $62,904 | $59,690 | | Provision for credit losses | $2,500 | $2,400 | $3,750 | | Noninterest income | $10,898 | $10,201 | $11,127 | | Noninterest expense | $43,419 | $44,505 | $37,877 | | Net income | $21,822 | $19,830 | $21,891 | | Effective tax rate | 25.30% | 24.31% | 25.01% | Balance Sheet Summary Total assets and deposits saw minor fluctuations QoQ, while total equity and tangible equity continued to grow, reflecting a strengthening capital base Balance Sheet Summary (Dollars in thousands) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :-------------------------- | :------------ | :------------- | :------------ | | Total assets | $5,701,294 | $5,727,686 | $5,662,700 | | Total loans | $3,998,667 | $3,940,232 | $3,976,595 | | Total deposits | $4,798,439 | $4,852,791 | $4,521,728 | | Total equity | $718,649 | $694,491 | $619,335 | | Total tangible equity | $605,445 | $580,265 | $522,794 | Profitability and Capital Ratios Profitability ratios generally improved QoQ, with ROAA and ROAE increasing, and capital ratios for both the Company and the Bank remained strong and above regulatory minimums, indicating robust financial health Profitability Ratios | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :---------------------------------- | :------------ | :------------- | :------------ | | Return on average assets (ROAA) | 1.53% | 1.42% | 1.57% | | Return on average equity (ROAE) | 12.39% | 11.76% | 14.55% | | Net interest margin (tax-equivalent) | 4.85% | 4.88% | 4.63% | | Efficiency ratio | 55.99% | 56.46% | 53.29% | | Return on average tangible common equity (ROATCE) | 15.29% | 14.70% | 17.66% | | Tangible common equity to tangible assets (TCE/TA) | 10.83% | 10.34% | 9.39% | Company Capital Ratios | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :-------------------------- | :------------ | :------------- | :------------ | | Common equity tier 1 capital ratio | 13.77% | 13.47% | 12.41% | | Tier 1 risk-based capital ratio | 14.31% | 14.01% | 12.94% | | Total risk-based capital ratio | 16.55% | 16.24% | 15.12% | | Tier 1 leverage ratio | 11.83% | 11.58% | 10.96% | - Both Company and Bank capital ratios are inclusive of a capital conservation buffer of 2.50% and exceed minimum capital adequacy guidelines7 Per Share Data Diluted earnings per share remained stable YoY at $0.48, while tangible book value per share continued its double-digit growth trend Per Share Data | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :------------------------ | :------------ | :------------- | :------------ | | Diluted earnings per share | $0.48 | $0.43 | $0.48 | | Tangible book value per share | $13.44 | $12.88 | $11.66 | | Cash dividend per share | $0.06 | N/A | N/A | - The Board of Directors declared a cash dividend of $0.06 per share of common stock, payable on August 4, 20259 Detailed Operating Results Net Interest Income Analysis Net interest income increased QoQ and YoY, driven by higher earning asset balances and improved securities yields, despite a slight decline in net interest margin QoQ due to market interest rates and one more day in the period with larger interest earning asset balances Net Interest Income (Dollars in thousands) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :---------------------- | :------ | :------ | :------ | | Net interest income (GAAP) | $64,234 | $62,904 | $59,690 | | Net interest income (TE) | $64,570 | $63,248 | $60,044 | | Net interest margin (GAAP) | 4.83% | 4.85% | 4.60% | | Net interest margin (TE) | 4.85% | 4.88% | 4.63% | - The QoQ decrease in net interest margin was driven by market interest rates and one more day in the period with larger interest earning asset balances. The YoY increase was primarily due to higher security yields and a decrease in average other short-term borrowings20 Interest Income and Expense Trends Interest income from earning assets increased QoQ and YoY, primarily due to higher yielding securities replacing older ones, while interest expense on deposits saw a slight QoQ increase but a YoY decrease, and borrowing costs decreased significantly YoY due to reduced FHLB advances Interest Income (Dollars in thousands) | Source | Q2 2025 | Q1 2025 | Q2 2024 | | :------------------------------------ | :------ | :------ | :------ | | Total interest earning assets (Avg Bal) | $5,336,339 | $5,257,416 | $5,216,248 | | Total interest income (TE) | $75,574 | $73,909 | $73,577 | | Yield on interest earning assets | 5.68% | 5.70% | 5.67% | Interest Expense (Dollars in thousands) | Source | Q2 2025 | Q1 2025 | Q2 2024 | | :------------------------------------ | :------ | :------ | :------ | | Total interest bearing liabilities (Avg Bal) | $3,241,585 | $3,216,946 | $3,172,132 | | Total interest expense | $11,004 | $10,661 | $13,533 | | Cost of interest bearing liabilities | 1.36% | 1.34% | 1.72% | | Cost of interest bearing deposits | 1.30% | 1.28% | 1.33% | - The decreased yield on interest earning assets QoQ was driven by a lower yield on FHLBC and FRBC Stock and repricing within the loan portfolio. The YoY increase was due to planned turnover in the securities portfolio, replacing lower-yielding securities with higher-yielding investments1517 - Borrowing costs decreased QoQ due to a $1.4 million decrease in average other short-term borrowings and significantly YoY ($242.9 million decrease in average FHLB advances), leading to a $3.3 million reduction in interest expense on other short-term borrowings19 Noninterest Income Analysis Noninterest income increased QoQ, primarily due to higher card-related income and an increase in the cash surrender value of BOLI, but decreased YoY mainly due to the absence of a death benefit realized on BOLI in 2025 and a decrease in residential mortgage banking revenue Noninterest Income (Dollars in thousands) | Category | Q2 2025 | Q1 2025 | Q2 2024 | % Change QoQ | % Change YoY | | :------------------------------------ | :------ | :------ | :------ | :----------- | :----------- | | Wealth management | $3,103 | $3,089 | $2,779 | 0.5% | 11.7% | | Service charges on deposits | $2,788 | $2,719 | $2,508 | 2.5% | 11.2% | | Total residential mortgage banking revenue | $575 | $447 | $808 | 28.6% | (28.8%) | | Change in cash surrender value of BOLI | $690 | $498 | $820 | 38.6% | (15.9%) | | Death benefit realized on BOLI | $- | $- | $893 | - | (100.0%) | | Card related income | $2,716 | $2,412 | $2,577 | 12.6% | 5.4% | | Other income | $1,026 | $1,036 | $742 | (1.0%) | 38.3% | | Total noninterest income | $10,898 | $10,201 | $11,127 | 6.8% | (2.1%) | - The QoQ increase was primarily driven by a $304,000 increase in card related income and a $192,000 increase in the cash surrender value of BOLI21 - The YoY decrease was mainly due to no death benefits realized on BOLI in 2025 (compared to $893,000 in Q2 2024) and a $233,000 decrease in residential mortgage banking revenue, partially offset by increases in wealth management income, service charges on deposits, and other income22 Noninterest Expense Analysis Noninterest expense decreased QoQ, mainly due to a significant reduction in other real estate owned (OREO) expense, but increased YoY, primarily driven by higher salaries and employee benefits, and increased computer and data processing costs related to acquisitions Noninterest Expense (Dollars in thousands) | Category | Q2 2025 | Q1 2025 | Q2 2024 | % Change QoQ | % Change YoY | | :------------------------------------ | :------ | :------ | :------ | :----------- | :----------- | | Total salaries and employee benefits | $26,950 | $26,993 | $23,424 | (0.2%) | 15.1% | | Occupancy, furniture and equipment expense | $4,477 | $4,548 | $3,899 | (1.6%) | 14.8% | | Computer and data processing | $2,692 | $2,348 | $2,184 | 14.7% | 23.3% | | Amortization of core deposit intangible asset | $1,022 | $1,037 | $574 | (1.4%) | 78.0% | | Other real estate owned expense, net | $35 | $1,873 | $(87) | (98.1%) | N/M | | Total noninterest expense | $43,419 | $44,505 | $37,877 | (2.4%) | 14.6% | | Efficiency ratio (GAAP) | 55.99% | 56.46% | 53.29% | | | | Adjusted efficiency ratio (non-GAAP) | 54.54% | 55.48% | 52.68% | | | - The QoQ decrease was mainly due to a $1.8 million decrease in OREO expense, net, reflecting a gain on OREO sale in Q2 2025 versus a net loss in Q1 2025, and lower operating costs from a large OREO property sale27 - The YoY increase was primarily attributable to a $3.5 million increase in salaries and employee benefits, and increases in occupancy, computer and data processing, and core deposit intangible, partly due to the FRME branches acquisition and Bancorp Financial merger-related costs28 Balance Sheet and Asset Quality Earning Assets Total loans increased QoQ and YoY, driven by growth in leases, commercial real estate-investor, and construction portfolios, while the available-for-sale securities portfolio also increased, with a reduction in net unrealized losses - Total loans were $4.00 billion at June 30, 2025, an increase of $58.4 million QoQ and $22.1 million YoY11 - Available-for-sale securities totaled $1.18 billion at June 30, 2025, an increase of $31.0 million QoQ and $4.0 million YoY. Net unrealized losses decreased to $54.7 million from $59.7 million QoQ and $82.6 million YoY1132 Loan Portfolio Composition and Trends Loan growth QoQ was primarily in construction, leases, and commercial real estate – investor segments, while commercial, commercial real estate – owner occupied, and multifamily loans decreased, with year-over-year growth following similar trends, with significant increases in leases and construction Total Loans by Segment (Dollars in thousands) | Segment | June 30, 2025 | March 31, 2025 | June 30, 2024 | % Change QoQ | % Change YoY | | :-------------------------------- | :------------ | :------------- | :------------ | :----------- | :----------- | | Commercial | $718,927 | $732,874 | $809,443 | (1.9%) | (11.2%) | | Leases | $524,513 | $505,455 | $452,957 | 3.8% | 15.8% | | Commercial real estate – investor | $1,118,782 | $1,105,440 | $1,014,345 | 1.2% | 10.3% | | Commercial real estate – owner occupied | $652,449 | $669,964 | $745,938 | (2.6%) | (12.5%) | | Construction | $251,692 | $205,839 | $185,634 | 22.3% | 35.6% | | Multifamily | $333,787 | $341,253 | $388,743 | (2.2%) | (14.1%) | | Total loans | $3,998,667 | $3,940,232 | $3,976,595 | 1.5% | 0.6% | - The increase in total loans QoQ was primarily due to increased originations in leases ($19.1 million), commercial real estate – investor ($13.3 million), and construction loans ($45.9 million)31 - Year-over-year loan growth was driven by leases ($71.6 million), commercial real estate – investor ($104.4 million), and construction ($66.1 million)31 Securities Portfolio The securities available-for-sale portfolio increased QoQ due to purchases and a reduction in unrealized losses, maintaining high quality with over 99% of publicly issued securities rated AA or better Securities Available-for-Sale (Dollars in thousands) | Category | June 30, 2025 | March 31, 2025 | June 30, 2024 | % Change QoQ | % Change YoY | | :------------------------------------ | :------------ | :------------- | :------------ | :----------- | :----------- | | U.S. Treasury | $190,446 | $160,191 | $191,274 | 18.9% | (0.4%) | | Collateralized mortgage obligations | $395,014 | $390,891 | $386,055 | 1.1% | 2.3% | | Collateralized loan obligations | $201,071 | $199,845 | $177,020 | 0.6% | 13.6% | | Total securities available-for-sale | $1,177,688 | $1,146,721 | $1,173,661 | 2.7% | 0.3% | - The QoQ increase in the securities portfolio was due to $79.6 million in purchases and a $5.0 million reduction in unrealized losses, partially offset by $53.2 million in maturities, calls, and paydowns32 - The year-over-year decrease in net unrealized losses is attributed to changes in market interest rates and the replacement of matured securities with higher-yielding, short-duration investments32 Asset Quality Asset quality improved with a decrease in nonperforming loans QoQ and YoY, while total nonperforming assets saw a slight QoQ increase but a significant YoY decrease, and classified loans increased QoQ but decreased YoY, with ongoing remediation efforts - Nonperforming loans totaled $32.2 million at June 30, 2025, a decrease of $2.5 million QoQ and $14.7 million YoY. As a percent of total loans, nonperforming loans were 0.8% at June 30, 2025, down from 0.9% QoQ and 1.2% YoY1134 - Total nonperforming assets were $39.0 million at June 30, 2025, a 2.1% increase QoQ but a 27.6% decrease YoY34 Nonperforming Assets Nonaccrual loans and loans past due 90 days or more significantly decreased QoQ and YoY, while other real estate owned (OREO) increased QoQ but decreased YoY Nonperforming Assets (Dollars in thousands) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | % Change QoQ | % Change YoY | | :------------------------------------ | :------------ | :------------- | :------------ | :----------- | :----------- | | Nonaccrual loans | $31,902 | $33,394 | $41,957 | (4.5%) | (24.0%) | | Loans past due 90 days or more and still accruing interest | $345 | $1,397 | $4,909 | (75.3%) | (93.0%) | | Total nonperforming loans | $32,247 | $34,791 | $46,866 | (7.3%) | (31.2%) | | Other real estate owned | $6,486 | $2,878 | $6,920 | 125.4% | (6.3%) | | Total nonperforming assets | $38,967 | $38,153 | $53,786 | 2.1% | (27.6%) | - The $2.5 million decrease in nonperforming loans QoQ was driven by nonaccrual loan outflows of $6.6 million, primarily due to one relationship transferred to OREO, partially offset by inflows of $5.1 million11 Classified Loans Classified loans increased QoQ, mainly due to a large commercial real estate – owner occupied downgrade, but decreased significantly YoY, with remediation efforts ongoing to improve cash flow and tenancy Classified Loans by Segment (Dollars in thousands) | Segment | June 30, 2025 | March 31, 2025 | June 30, 2024 | % Change QoQ | % Change YoY | | :-------------------------------- | :------------ | :------------- | :------------ | :----------- | :----------- | | Commercial | $23,354 | $20,807 | $19,142 | 12.2% | 22.0% | | Commercial real estate – owner occupied | $51,335 | $26,818 | $48,387 | 91.4% | 6.1% | | Construction | $1,624 | $18,201 | $5,740 | (91.1%) | (71.7%) | | Multifamily | $1,099 | $332 | $6,810 | 231.0% | (83.9%) | | Total classified loans | $97,620 | $85,043 | $122,405 | 14.8% | (20.2%) | - The QoQ increase in classified loans was primarily driven by $35.4 million in inflows, mostly from one large commercial real estate – owner occupied downgrade, offset by $22.8 million in outflows (paid off, upgraded, transferred to OREO, principal reductions, and charge-offs)39 Allowance for Credit Losses and Net Charge-offs The Allowance for Credit Losses (ACL) on loans remained stable as a percentage of total loans, provision expense for credit losses was consistent QoQ but decreased YoY, and net charge-offs significantly decreased QoQ and YoY, with continued strong recoveries Allowance for Credit Losses (Dollars in thousands) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :------------------------------------ | :------------ | :------------- | :------------ | | ACL on loans | $42,990 | $41,551 | $42,269 | | ACL on unfunded commitments | $2,300 | $2,000 | $2,500 | | Provision for credit losses | $2,500 | $2,400 | $3,750 | | Net charge-offs | $785 | $4,353 | $5,794 | | ACL on loans to total loans | 1.1% | 1.1% | 1.1% | | ACL on loans to nonaccrual loans | 134.8% | 124.4% | 100.7% | - The Q2 2025 provision expense of $2.5 million consisted of $2.2 million for credit losses on loans and $277,000 for unfunded commitments, based on historical loss rates and nonperforming loan trends40 - Net charge-offs of $785,000 in Q2 2025 were primarily within the commercial portfolio, representing a significant decrease from $4.4 million in Q1 2025 and $5.8 million in Q2 20244042 - Gross recoveries were $447,000 in Q2 2025, indicating aggressive management efforts to resolve prior charge-offs45 Deposits Total deposits decreased QoQ, mainly due to declines in savings, NOW, demand, and time deposits, with the bulk of the decline occurring in June, but total quarterly average deposits increased YoY, driven by the acquisition of FRME branches in December 2024 - Total deposits were $4.80 billion at June 30, 2025, a decrease of $54.4 million (1.1%) compared to March 31, 202546 - The QoQ decrease was primarily due to decreases in savings accounts ($23.2 million), NOW accounts ($11.8 million), demand deposits ($9.6 million), and time deposits ($10.4 million)46 - Total quarterly average deposits increased $274.0 million (6.0%) YoY, driven by the acquisition of FRME branches in December 202447 Borrowings Other short-term borrowings were eliminated by June 30, 2025, a significant reduction from the prior year, primarily due to an influx of cash from the FRME branch acquisition, which provided lower-cost funding - As of June 30, 2025, and March 31, 2025, there were no other short-term borrowings, compared to $330.0 million at June 30, 2024, which were all short-term FHLB advances48 - The substantial decrease in short-term FHLB advances resulted from cash influx due to the FRME branch acquisition in December 2024, allowing the use of purchased deposits for lower-cost funding48 Non-GAAP Financial Measures Reconciliation Non-GAAP Presentations Overview Management uses non-GAAP financial measures, such as adjusted net income, tax-equivalent net interest income/margin, and adjusted efficiency ratio, to provide supplemental information for evaluating performance and period-to-period comparisons - Non-GAAP measures are used for financial and operational decision-making and evaluating period-to-period comparisons, by excluding expenditures or assets not indicative of primary business operations or by presenting metrics on a fully taxable equivalent basis50 - These non-GAAP measures should not be considered a substitute for GAAP financial measures, and investors are encouraged to review GAAP measures and not rely solely on non-GAAP information51 Reconciliation Tables Detailed reconciliations are provided for adjusted net income, net interest margin (tax-equivalent), efficiency ratio, adjusted efficiency ratio, and return on average tangible common equity, bridging GAAP figures to their non-GAAP counterparts by adjusting for specific items Adjusted Net Income Reconciliation (Dollars in thousands) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :------------------------------------------ | :------ | :------ | :------ | | Income before income taxes (GAAP) | $29,213 | $26,200 | $29,190 | | Pre-tax income adjustments: | | | | | Death benefit related to BOLI | $- | $- | $(893) | | MSR losses | $531 | $570 | $238 | | Merger related costs, net of losses/(gains) on branch sales | $810 | $454 | $- | | Adjusted net income before taxes | $30,554 | $27,224 | $28,535 | | Taxes on adjusted net income | $7,730 | $6,619 | $7,359 | | Adjusted net income (non-GAAP) | $22,824 | $20,605 | $21,176 | | Adjusted diluted earnings per share (non-GAAP) | $0.50 | $0.45 | $0.46 | Net Interest Margin Reconciliation (Tax-Equivalent) (Dollars in thousands) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :-------------------------- | :------ | :------ | :------ | | Net interest income (GAAP) | $64,234 | $62,904 | $59,690 | | Taxable-equivalent adjustment | $336 | $344 | $354 | | Net interest income (TE) | $64,570 | $63,248 | $60,044 | | Net interest margin (GAAP) | 4.83% | 4.85% | 4.60% | | Net interest margin (TE) | 4.85% | 4.88% | 4.63% | Efficiency Ratio / Adjusted Efficiency Ratio Reconciliation | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :------------------------------------ | :------ | :------ | :------ | | Efficiency ratio (GAAP) | 55.99% | 56.46% | 53.29% | | Adjusted efficiency ratio (non-GAAP) | 54.54% | 55.48% | 52.68% | | Return on average tangible common equity (non-GAAP) | 15.29% | 14.70% | 17.66% | Forward-Looking Statements Cautionary Note Regarding Forward-Looking Statements The report contains forward-looking statements regarding future economic outlook, balance sheet growth, capital building, and anticipated strategic and financial benefits of the Bancorp Financial merger, which are subject to various risks and uncertainties that could cause actual results to differ materially - Forward-looking statements include expectations regarding economic outlook, balance sheet growth, capital building, and the anticipated strategic and financial benefits of the Bancorp Financial merger, including integration progress and competitive positioning52 - Key risk factors include the strength of the U.S. and local economies, loan delinquencies and charge-offs, changes in legislation/regulation, risks related to acquisitions, adverse capital market conditions (including interest rates), elevated inflation, and other events beyond the company's control52 - The company undertakes no obligation to publicly update or revise any forward-looking statements, except as required by law52 Conference Call Information Q2 2025 Earnings Conference Call Old Second Bancorp, Inc. will host a conference call on Thursday, July 24, 2025, to discuss its second quarter 2025 financial results, with replay available until July 31, 2025 - Conference call to discuss Q2 2025 financial results will be held on Thursday, July 24, 2025, at 10:00 a.m. Eastern Time (9:00 a.m. Central Time)53 - Investors can access the call by dialing 888-506-0062 (Entry Code: 566890). A replay will be available until July 31, 2025, by dialing 877-481-4010 (Conference ID: 52648)5354 Consolidated Financial Statements Consolidated Balance Sheets The consolidated balance sheet as of June 30, 2025, shows total assets of $5.70 billion, with net loans at $3.96 billion and total deposits at $4.80 billion, and total stockholders' equity increased to $718.6 million from $671.0 million at December 31, 2024 Consolidated Balance Sheets (In thousands) | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :------------ | :---------------- | | Total assets | $5,701,294 | $5,649,377 | | Net loans | $3,955,677 | $3,937,717 | | Total deposits | $4,798,439 | $4,768,731 | | Total liabilities | $4,982,645 | $4,978,343 | | Total stockholders' equity | $718,649 | $671,034 | Consolidated Statements of Income The consolidated statements of income for the three and six months ended June 30, 2025, reflect increased net interest and dividend income compared to the prior year, alongside higher noninterest expense, resulting in net income of $21.8 million for Q2 2025 and $41.7 million for the six-month period Consolidated Statements of Income (In thousands, except share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total interest and dividend income | $75,238 | $73,223 | $148,803 | $146,553 | | Total interest expense | $11,004 | $13,533 | $21,665 | $27,080 | | Net interest and dividend income | $64,234 | $59,690 | $127,138 | $119,473 | | Provision for credit losses | $2,500 | $3,750 | $4,900 | $7,250 | | Total noninterest income | $10,898 | $11,127 | $21,099 | $21,628 | | Total noninterest expense | $43,419 | $37,877 | $87,924 | $76,118 | | Net income | $21,822 | $21,891 | $41,652 | $43,203 | | Diluted earnings per share | $0.48 | $0.48 | $0.91 | $0.95 | Quarterly Consolidated Average Balance The quarterly consolidated average balance sheet shows an increase in total earning assets and total interest-bearing liabilities QoQ and YoY, reflecting growth in the bank's operations Quarterly Consolidated Average Balance (In thousands) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :------------------------------------ | :------ | :------ | :------ | | Total assets | $5,736,706 | $5,674,317 | $5,615,458 | | Total Earning Assets | $5,336,339 | $5,257,416 | $5,216,248 | | Total Interest Bearing Liabilities | $3,241,585 | $3,216,946 | $3,172,132 | | Total deposits | $4,850,180 | $4,799,104 | $4,576,146 | | Stockholders' equity | $706,254 | $683,578 | $605,253 | Quarterly Consolidated Statements of Income Quarterly consolidated statements of income provide a detailed breakdown of revenues and expenses over the past several quarters, illustrating trends in net interest income, noninterest income, and noninterest expense, which collectively led to the reported net income and EPS figures Quarterly Consolidated Statements of Income (In thousands, except per share data) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | | :------------------------------------ | :------ | :------ | :------ | :------ | :------ | :------ | | Net interest and dividend income | $64,234 | $62,904 | $61,584 | $60,578 | $59,690 | $59,783 | | Provision for credit losses | $2,500 | $2,400 | $3,500 | $2,000 | $3,750 | $3,500 | | Total noninterest income | $10,898 | $10,201 | $11,610 | $10,581 | $11,127 | $10,501 | | Total noninterest expense | $43,419 | $44,505 | $44,322 | $39,308 | $37,877 | $38,241 | | Net income | $21,822 | $19,830 | $19,110 | $22,951 | $21,891 | $21,312 | | Diluted earnings per share (GAAP) | $0.48 | $0.43 | $0.42 | $0.50 | $0.48 | $0.47 | | Dividends paid per share | $0.06 | $0.06 | $0.06 | $0.05 | $0.05 | $0.05 |