Flushing Financial (FFIC) - 2025 Q2 - Quarterly Results

Executive Summary & Q2 2025 Performance This section provides an overview of the CEO's commentary, key performance metrics, and detailed highlights for Q2 2025, emphasizing strategic execution and financial strength CEO Commentary John R. Buran, President and CEO, emphasized the successful execution of strategic priorities in Q2 2025, leading to net interest margin expansion, significant noninterest-bearing deposit growth, and improved capital ratios - Successful execution of strategic priorities, building upon foundational actions from preceding quarters[2] - Pleased to report another quarter of net interest margin expansion, with both GAAP and Core NIM increasing[2] - Strong year-over-year growth in average noninterest-bearing deposits, which increased 6.4%[2] - Tangible common equity to tangible assets ratio of 8.04%, a significant improvement from the prior year[2] - Maintain disciplined underwriting standards and proactive risk management for long-term shareholder value[2] Q2 2025 Performance Summary Flushing Financial Corporation reported strong Q2 2025 results with significant year-over-year increases in GAAP and Core EPS, driven by net interest margin expansion and robust average deposit growth 2Q25 Earnings Performance and Key Metrics | Metric | 2Q25 Value | YoY Change | QoQ Change | | :----- | :--------- | :--------- | :--------- | | GAAP EPS | $0.41 | 127.8% | -241.4% | | Core EPS | $0.32 | 77.8% | 39.1% | | GAAP NIM FTE | 2.54% | 49 bps | 3 bps | | Core NIM FTE | 2.52% | 49 bps | 3 bps | | Average Deposits | $7.6 billion | 5.7% | 0.6% | | Average Noninterest Bearing Deposits | N/A | 6.4% | 2.4% | | GAAP Pre-provision Pre-tax Net Revenue | N/A | 191.1% | N/A | | Core Pre-provision Pre-tax Net Revenue | N/A | 134.5% | N/A | - Credit metrics stable to improving: NPAs to assets were 75 bps (compared to 71 bps prior quarter), Criticized and classified loans totaled 108 bps of gross loans (compared to 133 bps in the prior quarter), Net charge-offs to average loans were 15 bps (compared to 27 bps in 1Q25)[5] - Capital expanded QoQ: TCE/TA was 8.04% at June 30, 2025, compared to 7.79% at March 31, 2025[5] Detailed Q2 2025 Highlights Key achievements in Q2 2025 included further expansion of GAAP and Core Net Interest Margin, improved profitability metrics, and an increase in tangible book value per share - GAAP and Core NIM expanded 3 bps each QoQ to 2.54% and 2.52%, respectively[9][10] - GAAP ROAA and ROAE increased 107 bps and 1,336 bps QoQ; Core ROAA and ROAE improved 15 bps and 195 bps QoQ[9] - Tangible book value per share increased 0.5% QoQ to $20.89 at June 30, 2025[9][10] - Approximately 90% of the loan portfolio is collateralized by real estate with an average loan to value of less than 35%[9] - Maintaining ample liquidity with $3.6 billion of undrawn lines and resources as of June 30, 2025[9] - Total average deposits increased by 5.7% YoY and 0.6% QoQ; Average noninterest bearing deposits increased 6.4% YoY and 2.4% QoQ[9][10] - Tangible Common Equity to Tangible Assets was 8.04% at June 30, 2025, up 92 bps YoY and 25 bps QoQ[9][10] Financial Performance Analysis This section analyzes the company's income statement, highlighting trends in net interest income, noninterest income, expenses, and credit loss provisions Income Statement Highlights The company experienced significant year-over-year growth in net interest income, noninterest income, and net income, while noninterest expense saw a notable quarter-over-quarter decrease Income Statement Key Figures (2Q25 vs. Prior Periods) | Metric ($000s) | 2Q25 | 1Q25 | 2Q24 | YoY Change | QoQ Change | | :-------------- | :--- | :--- | :--- | :--------- | :--------- | | Net Interest Income | $53,209 | $52,989 | $42,776 | 24.4 % | 0.4 % | | Provision for Credit Losses | 4,194 | 4,318 | 809 | 418.4 % | (2.9) % | | Noninterest Income (Loss) | 10,277 | 5,074 | 4,216 | 143.8 % | 102.5 % | | Noninterest Expense | 40,356 | 59,676 | 39,047 | 3.4 % | (32.4) % | | Net Income (Loss) | $14,203 | ($9,796) | $5,322 | 166.9 % | (245.0) % | | Diluted Earnings (Loss) per Common Share | $0.41 | ($0.29) | $0.18 | 127.8 % | (241.4) % | | Core Net Income | $11,162 | $7,931 | $5,456 | 104.6 % | 40.7 % | | Core EPS | $0.32 | $0.23 | $0.18 | 77.8 % | 39.1 % | - Net charge-offs (recoveries) were $2.5 million (15 bps of average loans) in 2Q25, compared to $(92,000) ((1) bp of average loans) in 2Q24 and $4.4 million (27 bps of average loans) in 1Q25[12] - Net Interest Margin FTE of 2.54% increased 49 bps YoY and 3 bps QoQ; the cost of funds increased 6 bps QoQ primarily due to swap maturities and forward starting swaps at higher rates, while the yield on interest earning assets increased 8 bps QoQ[15] - Effective tax rate was 25.0% in 2Q25 compared to 25.4% in 2Q24 and (65.2)% in 1Q25, with the 1Q25 rate primarily related to a non-tax deductible goodwill impairment[15] Balance Sheet, Credit Quality, and Capital This section reviews the company's balance sheet, credit quality metrics, and capital ratios, highlighting trends in loans, deposits, nonperforming assets, and capital adequacy Balance Sheet, Credit Quality, and Capital Highlights The balance sheet showed a slight decrease in average loans YoY but an increase QoQ, while average total deposits increased both YoY and QoQ Balance Sheet & Capital Key Figures (2Q25 vs. Prior Periods) | Metric | 2Q25 | 1Q25 | 2Q24 | YoY Change | QoQ Change | | :----- | :--- | :--- | :--- | :--------- | :--------- | | Avg Loans ($B) | $6.7 | $6.7 | $6.7 | (1.0)% | 0.1% | | Avg Dep ($B) | $7.6 | $7.6 | $7.2 | 5.7% | 0.6% | | Book Value/Share | $20.91 | $20.81 | $22.89 | (8.7)% | 0.5% | | Tangible BV/Share | $20.89 | $20.78 | $22.24 | (6.1)% | 0.5% | | TCE/TA (%) | 8.04% | 7.79% | 7.12% | 92 bps | 25 bps | | Leverage Ratio (%) | 8.31% | 8.12% | 8.18% | 13 bps | 19 bps | Credit Quality Key Figures (2Q25 vs. Prior Periods) | Metric ($000s) | 2Q25 | 1Q25 | 2Q24 | YoY Change | QoQ Change | | :-------------- | :--- | :--- | :--- | :--------- | :--------- | | Nonperforming Loans | $49,247 | $46,263 | $34,540 | 42.6 % | 6.5 % | | Nonperforming Assets | 66,125 | 64,263 | 55,832 | 18.4 % | 2.9 % | | Criticized and Classified Loans | 72,005 | 89,673 | 76,485 | (5.9) % | (19.7) % | | NPAs/Loans & OREO (%) | 0.99 | 0.95 | 0.82 | 17 bps | 4 bps | | ACLs/Loans (%) | 0.62 | 0.59 | 0.61 | 1 bp | 3 bps | | ACLs/NPLs (%) | 83.76 | 86.54 | 120.58 | (36.82) bps | (2.78) bps | | NCOs/Avg Loans (%) | 0.15 | 0.27 | (0.01) | 16 bps | (12) bps | - Period end net loans totaled $6.7 billion, down 1.0% YoY and 0.5% QoQ. Total loan closings were $159.1 million in 2Q25, up 26.3% YoY but down 8.6% QoQ. The loan pipeline decreased 44.8% YoY and 14.4% QoQ to $181.0 million[10][21] - Average CDs totaled $2.5 billion, up 1.4% YoY, but down 4.6% QoQ; approximately $391.2 million of retail CDs are due to mature at an average rate of 3.93% in 3Q25[10][21] - The Company paid a dividend of $0.22 per share in 2Q25[21] Corporate Information This section provides details on upcoming earnings calls, an overview of Flushing Financial Corporation, and the standard safe harbor statement regarding forward-looking information Conference Call Information This section provides details on the upcoming Third Quarter 2025 earnings release and conference call, as well as information for the Second Quarter 2025 conference call - Third Quarter 2025 financial results planned for release after market close on October 28, 2025, followed by a conference call on October 29, 2025, at 9:30 AM (ET)[24] - A conference call to discuss Second Quarter 2025 results and strategy was hosted on Friday, July 25, 2025, at 11:00 AM (ET)[28] About Flushing Financial Corporation Flushing Financial Corporation is the holding company for Flushing Bank, an FDIC-insured commercial bank operating in New York, offering comprehensive financial services - Flushing Financial Corporation (Nasdaq: FFIC) is the holding company for Flushing Bank®, an FDIC insured, New York State—chartered commercial bank[25] - The Bank operates banking offices in Queens, Brooklyn, Manhattan, and on Long Island, offering deposit, loan, equipment finance, and cash management services[25] - The Bank is uniquely different by rewarding customers with personalized attention and bankers who can communicate in the languages prevalent within multicultural markets[25] - As an Equal Housing Lender and leader in real estate lending, the Bank creates mortgage solutions for real estate owners and property managers[25] Safe Harbor Statement This statement advises that the press release contains forward-looking statements, which are inherently subject to risks and uncertainties, and the company has no obligation to update them - Statements relating to plans, strategies, economic performance, and trends are forward-looking statements[27] - Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated[27] - The Company has no obligation to update these forward-looking statements[27] Unaudited Financial Tables and Reconciliations This section provides detailed unaudited financial tables, including performance ratios, average balances, income statements, and reconciliations of GAAP to core metrics Financial Highlights This section provides a comprehensive overview of key performance ratios, average balances, credit quality metrics, and capital ratios for various periods Selected Performance Ratios (2Q25) | Metric | 2Q25 | 1Q25 | 4Q24 | 3Q24 | 2Q24 | 1H25 | 1H24 | | :---------------------------------- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Return on average assets (%) | 0.64 | (0.43) | (2.17) | 0.39 | 0.24 | 0.10 | 0.21 | | Return on average equity (%) | 8.00 | (5.36) | (29.24) | 5.30 | 3.19 | 1.22 | 2.69 | | Yield on average interest-earning assets (2) (%) | 5.59 | 5.51 | 5.60 | 5.63 | 5.43 | 5.55 | 5.37 | | Cost of average interest-bearing liabilities (%) | 3.58 | 3.50 | 3.75 | 4.10 | 3.95 | 3.54 | 3.89 | | Net interest margin (2) (%) | 2.54 | 2.51 | 2.39 | 2.10 | 2.05 | 2.52 | 2.06 | | Efficiency ratio (3) | 67.69 | 72.21 | 79.01 | 77.20 | 82.57 | 69.93 | 84.31 | Selected Balance Sheet Averages ($MM) | Metric | 2Q25 | 1Q25 | 4Q24 | 3Q24 | 2Q24 | 1H25 | 1H24 | | :-------------------- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total loans, net | $6,678 | $6,672 | $6,780 | $6,737 | $6,748 | $6,675 | $6,776 | | Total deposits | $7,607 | $7,561 | $7,450 | $7,464 | $7,196 | $7,584 | $7,139 | | Stockholders' equity | $709,839 | $731,592 | $673,588 | $672,762 | $667,557 | $720,656 | $668,371 | Selected Capital Ratios (%) | Metric | 2Q25 | 1Q25 | 4Q24 | 3Q24 | 2Q24 | 1H25 | 1H24 | | :---------------------------------- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Tier 1 leverage capital | 8.31 | 8.12 | 8.04 | 7.91 | 8.18 | 8.31 | 8.18 | | Common equity Tier 1 risk based capital | 10.41 | 10.17 | 10.13 | 10.16 | 10.22 | 10.41 | 10.22 | | Total risk-based capital | 14.57 | 14.31 | 14.23 | 14.24 | 14.38 | 14.57 | 14.38 | | Tangible common equity to tangible assets | 8.04 | 7.79 | 7.82 | 7.00 | 7.12 | 8.04 | 7.12 | Consolidated Statements of Income (Loss) This section presents the detailed income statement for the three and six months ended June 30, 2025, and comparative periods, showing interest income and expense, noninterest income and expense, and net income (loss) Consolidated Statements of Income (Loss) ($000s) | Metric | 2Q25 | 1Q25 | 2Q24 | 1H25 | 1H24 | | :---------------------------------- | :--- | :--- | :--- | :--- | :--- | | Interest and fees on loans | $95,005 | $93,032 | $92,728 | $188,037 | $185,687 | | Total interest and dividend income | $117,402 | $116,536 | $113,230 | $233,938 | $222,729 | | Total interest expense | $64,193 | $63,547 | $70,454 | $127,740 | $137,556 | | Net Interest Income | $53,209 | $52,989 | $42,776 | $106,198 | $85,173 | | Provision for credit losses | $4,194 | $4,318 | $809 | $8,512 | $1,401 | | Total noninterest income (loss) | $10,277 | $5,074 | $4,216 | $15,351 | $7,300 | | Total noninterest expense | $40,356 | $59,676 | $39,047 | $100,032 | $78,939 | | Net Income (Loss) | $14,203 | ($9,796) | $5,322 | $4,407 | $8,906 | | Diluted earnings (loss) per common share | $0.41 | ($0.29) | $0.18 | $0.12 | $0.30 | | Dividends per common share | $0.22 | $0.22 | $0.22 | $0.44 | $0.44 | Consolidated Statements of Financial Condition This section details the company's assets, liabilities, and stockholders' equity at various quarter-end dates, providing a snapshot of its financial position Consolidated Statements of Financial Condition ($000s) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :---------------------------------- | :------------ | :------------- | :------------ | | Total assets | $8,776,524 | $9,008,396 | $9,097,240 | | Net loans | $6,668,354 | $6,701,798 | $6,735,378 | | Total deposits | $7,289,352 | $7,718,218 | $6,906,863 | | Borrowed funds | $600,171 | $421,542 | $1,316,565 | | Total liabilities | $8,070,147 | $8,305,545 | $8,431,918 | | Total stockholders' equity | $706,377 | $702,851 | $665,322 | Average Balance Sheets This section presents average balances for interest-earning assets, total assets, interest-bearing liabilities, and total liabilities for the three and six months ended June 30, 2025, and comparative periods Average Balance Sheets ($000s) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | 1H25 | 1H24 | | :---------------------------------- | :------------ | :------------- | :------------ | :--- | :--- | | Total loans, net | $6,678,494 | $6,671,922 | $6,748,140 | $6,675,226 | $6,776,128 | | Total interest-earning assets | $8,402,582 | $8,468,913 | $8,354,994 | $8,435,565 | $8,295,076 | | Total assets | $8,918,075 | $9,015,880 | $8,830,665 | $8,966,707 | $8,769,085 | | Total deposits | $7,607,080 | $7,560,956 | $7,195,940 | $7,584,144 | $7,138,720 | | Total interest-bearing liabilities | $7,176,399 | $7,261,100 | $7,140,068 | $7,218,514 | $7,077,498 | | Equity | $709,839 | $731,592 | $667,557 | $720,656 | $668,371 | Net Interest Income and Net Interest Margin This section provides a detailed breakdown of interest income and expense, net interest income, and net interest margin, including tax-equivalent yields and costs for various asset and liability categories Net Interest Income and Margin (Tax Equivalent) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | 1H25 | 1H24 | | :---------------------------------- | :------------ | :------------- | :------------ | :--- | :--- | | Total interest-earning assets yield (%) | 5.59 | 5.51 | 5.43 | 5.55 | 5.37 | | Total interest-bearing liabilities cost (%) | 3.58 | 3.50 | 3.95 | 3.54 | 3.89 | | Net interest rate spread (tax equivalent) (%) | 2.01 | 2.01 | 1.48 | 2.01 | 1.48 | | Net interest margin (tax equivalent) (%) | 2.54 | 2.51 | 2.05 | 2.52 | 2.06 | Deposit and Loan Composition This section details the composition of deposits by type (noninterest-bearing, CDs, savings, money market, NOW accounts) and loans by category (multifamily, commercial real estate, one-to-four family, construction, SBA, commercial business) at various quarter-end dates Deposit Composition ($000s) | Deposit Type | June 30, 2025 | March 31, 2025 | June 30, 2024 | 2Q25 vs. 1Q25 % Change | 2Q25 vs. 2Q24 % Change | | :-------------------------- | :------------ | :------------- | :------------ | :--------------------- | :--------------------- | | Noninterest bearing | $899,602 | $863,714 | $825,327 | 4.2% | 9.0% | | Certificate of deposit accounts | $2,452,624 | $2,592,026 | $2,435,894 | (5.4)% | 0.7% | | NOW accounts | $2,174,124 | $2,393,482 | $1,774,268 | (9.2)% | 22.5% | | Total deposits | $7,289,352 | $7,718,218 | $6,906,863 | (5.6)% | 5.5% | Loan Composition ($000s) | Loan Type | June 30, 2025 | March 31, 2025 | June 30, 2024 | 2Q25 vs. 1Q25 % Change | 2Q25 vs. 2Q24 % Change | | :-------------------------- | :------------ | :------------- | :------------ | :--------------------- | :--------------------- | | Multifamily residential | $2,487,610 | $2,531,628 | $2,631,751 | (1.7)% | (5.5)% | | Commercial real estate | $1,987,523 | $1,953,710 | $1,894,509 | 1.7% | 4.9% | | Mortgage loans (Total) | $5,274,385 | $5,319,866 | $5,371,647 | (0.9)% | (1.8)% | | Commercial Business loans (Total) | $1,423,265 | $1,411,310 | $1,403,668 | 0.8% | 1.4% | | Gross loans | $6,697,650 | $6,731,176 | $6,775,315 | (0.5)% | (1.1)% | Loan Closings and Rates This section provides data on loan closings by type and the weighted average rates on new loan originations for recent quarters, offering insights into lending activity and pricing trends Loan Closings ($000s) | Loan Type | June 30, 2025 | March 31, 2025 | June 30, 2024 | 1H25 | 1H24 | | :-------------------------- | :------------ | :------------- | :------------ | :--- | :--- | | Mortgage loans | $71,998 | $84,422 | $57,802 | $156,420 | $134,831 | | Commercial Business loans | $87,178 | $89,654 | $68,162 | $176,832 | $121,117 | | Total Closings | $159,176 | $174,076 | $125,964 | $333,252 | $255,948 | Weighted Average Rate on Loan Closings (%) | Loan type | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :-------------------------- | :------------ | :------------- | :------------ | | Mortgage loans | 6.87 | 6.68 | 7.58 | | Commercial Business loans | 7.25 | 7.28 | 7.94 | | Total loans | 7.08 | 6.99 | 7.77 | Asset Quality This section details the allowance for credit losses, net loan charge-offs (recoveries), and nonperforming assets, including nonaccrual loans and nonperforming asset ratios, providing insight into the health of the loan portfolio Allowance for Credit Losses ($000s) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | 1H25 | 1H24 | | :---------------------------------- | :------------ | :------------- | :------------ | :--- | :--- | | Allowance for credit losses - loans (Ending balance) | $41,247 | $40,037 | $41,648 | $41,247 | $41,648 | | Total net loan charge-offs (recoveries) | $2,549 | $4,427 | ($92) | $6,976 | ($88) | | Provision (benefit) for loan losses | $3,759 | $4,312 | $804 | $8,071 | $1,399 | | Allowance for credit losses - loans to gross loans (%) | 0.62 | 0.59 | 0.61 | 0.62 | 0.61 | | Net loan charge-offs (recoveries) to average loans (%) | 0.15 | 0.27 | (0.01) | 0.21 | — | Nonperforming Assets ($000s) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :---------------------------------- | :------------ | :------------- | :------------ | | Total Nonaccrual loans | $49,247 | $46,263 | $34,540 | | Total Nonperforming Assets | $66,125 | $64,263 | $55,832 | | Nonperforming Assets to Total Assets (%) | 0.75 | 0.71 | 0.61 | | Allowance for Credit Losses to NPLs (%) | 83.8 | 86.5 | 120.6 | Reconciliation of GAAP Earnings (Loss) and Core Earnings This section provides a reconciliation of GAAP income (loss) to core income, adjusting for non-cash fair value adjustments, goodwill impairment, and other non-recurring items, and presents core diluted EPS, ROAA, and ROAE to offer an alternative view of the company's performance - Core earnings are non-GAAP measures used to understand the effects of certain interest and noninterest items and provide an alternative view of the Company's performance over time and in comparison to competitors[51] GAAP to Core Earnings Reconciliation ($000s, except EPS) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | 1H25 | 1H24 | | :---------------------------------- | :------------ | :------------- | :------------ | :--- | :--- | | GAAP income (loss) before income taxes | $18,936 | ($5,931) | $7,136 | $13,005 | $12,133 | | Impairment of goodwill | — | $17,636 | — | $17,636 | — | | Core income before taxes | $14,845 | $11,827 | $7,311 | $26,672 | $13,160 | | Core net income | $11,162 | $7,931 | $5,456 | $19,093 | $9,768 | | GAAP diluted earnings (loss) per common share | $0.41 | ($0.29) | $0.18 | $0.12 | $0.30 | | Core diluted earnings per common share | $0.32 | $0.23 | $0.18 | $0.55 | $0.33 | | Core return on average assets (%) | 0.50 | 0.35 | 0.25 | 0.43 | 0.22 | | Core return on average equity (%) | 6.29 | 4.34 | 3.27 | 5.30 | 2.92 | Reconciliation of GAAP Revenue and Pre-Provision Pre-Tax Net Revenue This section reconciles GAAP net interest income and noninterest income to core figures, and then calculates GAAP and Core Pre-provision Pre-tax Net Revenue (PPPTNR), providing a measure of underlying profitability before credit losses and taxes GAAP to Core Pre-Provision Pre-Tax Net Revenue ($000s) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | 1H25 | 1H24 | | :---------------------------------- | :------------ | :------------- | :------------ | :--- | :--- | | GAAP Net interest income | $53,209 | $52,989 | $42,776 | $106,198 | $85,173 | | Core Net interest income | $52,888 | $52,681 | $42,417 | $105,569 | $84,730 | | GAAP Noninterest income (loss) | $10,277 | $5,074 | $4,216 | $15,351 | $7,300 | | Core Noninterest income | $6,031 | $5,420 | $4,159 | $11,451 | $8,077 | | GAAP Noninterest expense | ($40,356) | ($59,676) | ($39,047) | ($100,032) | ($78,939) | | Core Noninterest expense | ($39,880) | ($41,956) | ($38,456) | ($81,836) | ($78,246) | | GAAP Pre-provision pre-tax net (loss) revenue | $23,130 | ($1,613) | $7,945 | $21,517 | $13,534 | | Core Pre-provision pre-tax net revenue | $19,039 | $16,145 | $8,120 | $35,184 | $14,561 | | Efficiency Ratio (%) | 67.7 | 72.2 | 82.6 | 69.9 | 84.3 | Reconciliation of GAAP Net Interest Income and Net Interest Margin to Core Net Interest Income This section reconciles GAAP net interest income and net interest margin to their core, fully taxable equivalent (FTE) counterparts, adjusting for fair value adjustments, purchase accounting, and episodic items to provide a clearer view of recurring interest income performance GAAP to Core Net Interest Income and Margin FTE ($000s) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | 1H25 | 1H24 | | :---------------------------------- | :------------ | :------------- | :------------ | :--- | :--- | | GAAP net interest income | $53,209 | $52,989 | $42,776 | $106,198 | $85,173 | | Core net interest income FTE | $52,984 | $52,777 | $42,515 | $105,761 | $84,928 | | Core net interest margin FTE (%) | 2.52 | 2.49 | 2.03 | 2.51 | 2.05 | | Net interest margin FTE excluding episodic items (%) | 2.48 | 2.48 | 2.02 | 2.48 | 2.02 | | Core yield on total loans (%) | 5.65 | 5.52 | 5.47 | 5.59 | 5.46 | Calculation of Tangible Stockholders' Common Equity to Tangible Assets This section provides a reconciliation of total equity and total assets to tangible stockholders' common equity and tangible assets, respectively, by deducting goodwill and core deposit intangibles, and presents the tangible common equity to tangible assets ratio, a key measure of capital adequacy - Tangible book value per common share is useful for both investors and management as this measure is commonly used by financial institutions, regulators, and investors to measure the capital adequacy of financial institutions[51] Tangible Stockholders' Common Equity to Tangible Assets ($000s) | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :---------------------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Total Equity | $706,377 | $702,851 | $724,539 | $666,891 | $665,322 | | Less: Goodwill | — | — | ($17,636) | ($17,636) | ($17,636) | | Less: Core deposit intangibles | ($940) | ($1,029) | ($1,123) | ($1,220) | ($1,322) | | Tangible Stockholders' Common Equity | $705,437 | $701,822 | $705,780 | $648,035 | $646,364 | | Total Assets | $8,776,524 | $9,008,396 | $9,038,972 | $9,280,886 | $9,097,240 | | Less: Goodwill | — | — | ($17,636) | ($17,636) | ($17,636) | | Less: Core deposit intangibles | ($940) | ($1,029) | ($1,123) | ($1,220) | ($1,322) | | Tangible Assets | $8,775,584 | $9,007,367 | $9,020,213 | $9,262,030 | $9,078,282 | | Tangible Stockholders' Common Equity to Tangible Assets (%) | 8.04 | 7.79 | 7.82 | 7.00 | 7.12 |