Great Southern Bancorp(GSBC) - 2025 Q3 - Quarterly Results

Executive Summary Preliminary Third Quarter 2025 Earnings Great Southern Bancorp, Inc. reported preliminary earnings of $1.56 per diluted common share for Q3 2025, an increase from $1.41 in Q3 2024, with net income rising to $17.8 million from $16.5 million Preliminary Earnings Overview | Metric | Q3 2025 | Q3 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Diluted EPS | $1.56 | $1.41 | +$0.15 | | Net Income | $17.8 million | $16.5 million | +$1.3 million | | Return on Average Common Equity (Annualized) | 11.30% | 11.10% | +0.20% | | Return on Average Assets (Annualized) | 1.23% | 1.11% | +0.12% | | Net Interest Margin (Annualized) | 3.72% | 3.42% | +0.30% | Third Quarter 2025 Key Financial Highlights Key financial highlights for Q3 2025 include a 5.8% increase in net interest income, improved asset quality with non-performing assets decreasing by $7.4 million, strong capital ratios exceeding regulatory thresholds, and a 4.7% decrease in total net loans - Net interest income increased by $2.8 million (5.8%) to $50.8 million, primarily due to lower interest expense on deposits and borrowings. Annualized net interest margin rose to 3.72% from 3.42% YoY[3] - Asset quality improved significantly, with non-performing assets and potential problem loans decreasing by $7.4 million to $9.2 million at September 30, 2025, from $16.6 million at December 31, 2024. Non-performing assets were 0.14% of total assets[3] - The Company maintained strong liquidity with $1.11 billion in FHLBank line availability and $356.2 million at the Federal Reserve Bank, plus $369.9 million in unpledged securities[3] - Capital position remained strong, with Tier 1 Leverage Ratio at 11.9%, Common Equity Tier 1 Capital Ratio at 13.3%, Tier 1 Capital Ratio at 13.8%, and Total Capital Ratio at 15.1%, all significantly above regulatory thresholds. Tangible common equity to tangible assets ratio was 10.9%[3] - Total net loans decreased by $222.7 million (4.7%) from December 31, 2024, to $4.47 billion, mainly due to reductions in construction, multi-family, and one-to-four-family residential loans[3] CEO Commentary on Performance and Strategy CEO Joseph W. Turner highlighted continued stability in core operations, disciplined execution of strategy, solid core performance with consistent net interest income, strong asset quality, and prudent expense management. He noted the resilience of the margin despite a competitive funding environment and the cessation of interest income from a terminated swap. The balance sheet remains well-positioned, with a focus on maintaining strong capital and liquidity, supporting customers, and generating shareholder value through consistent earnings and share repurchases - Core performance remained solid, with consistent net interest income, strong asset quality, and prudent expense management despite a competitive funding environment[4] - Total interest income for Q3 2025 was $79.1 million, with net interest income increasing to $50.8 million YoY, demonstrating margin resilience and disciplined asset-liability management. However, interest income from a terminated swap ceased after October 6, 2025[4] - Total assets were approximately $5.74 billion at September 30, 2025, reflecting modest contraction due to elevated net loan payoffs, particularly in multi-family and construction loans[4] - Operating discipline is a primary focus, with non-interest expense at $36.1 million, driven by higher legal/professional fees and core technology system upgrades. Non-interest income was $7.1 million, supported by various service fees[4] - Priorities include maintaining strong capital and liquidity, supporting customers, and generating shareholder value. The tangible common equity ratio was 10.9%, and book value per common share was $56.18, benefiting from consistent earnings and opportunistic share repurchases (165,000 shares repurchased in Q3 2025)[4] Financial Performance Analysis Net Interest Income Net interest income for Q3 2025 increased by $2.8 million (5.8%) to $50.8 million compared to Q3 2024, primarily driven by reduced interest expense on deposits and borrowings. The annualized net interest margin improved to 3.72% Net Interest Income (in thousands) | Metric | Q3 2025 | Q3 2024 | Q2 2025 | | :--- | :--- | :--- | :--- | | Interest Income | $79,079 | $83,796 | $80,975 | | Interest Expense | $28,306 | $35,821 | $30,012 | | Net Interest Income | $50,773 | $47,975 | $50,963 | | Net Interest Margin | 3.72% | 3.42% | 3.68% | | Average Interest Rate Spread | 3.13% | 2.74% | 3.09% | Interest Income and Expense Drivers The increase in net interest income was primarily due to strategic management of maturing/repricing brokered deposits and interest-bearing demand deposits, and the redemption of subordinated notes in June 2025, which eliminated associated interest expense. These reductions in interest expense offset a decrease in interest income on loans due to lower balances and market rates - Average yield on total interest-earning assets decreased from 5.98% in Q3 2024 to 5.79% in Q3 2025, with loan yields decreasing 23 basis points[6] - Average rate paid on total interest-bearing liabilities decreased from 3.24% in Q3 2024 to 2.66% in Q3 2025, driven by decreases in rates paid on interest-bearing demand/savings deposits (-34 bps), time deposits (-68 bps), and brokered deposits (-72 bps)[6] - Market interest rates, including the federal funds rate and SOFR, declined from Q4 2024 through Q3 2025, with an additional federal funds rate cut in September 2025, contributing to lower average rates paid on deposits and borrowings[7] Impact of Derivative Financial Instruments The Company uses interest rate swaps to mitigate interest rate fluctuation risk. Interest income from a terminated swap, which provided approximately $2.0 million per quarter, ceased after October 6, 2025 - The Company utilizes derivative financial instruments, primarily interest rate swaps, as part of its interest rate risk management strategy to mitigate exposure to fluctuations in future cash flows from interest rate changes[8] Effect of Cash Flow Hedge Accounting on Interest Income (in thousands) | Metric | Q3 2025 | Q3 2024 | Q2 2025 | | :--- | :--- | :--- | :--- | | Terminated interest rate swaps | $2,047 | $2,047 | $2,025 | | Active interest rate swaps | ($1,761) | ($2,743) | ($1,757) | | Increase (decrease) to interest income | $286 | ($696) | $268 | - Interest income from a terminated interest rate swap, which had been accreted monthly and provided approximately $2.0 million per quarter, ceased after its originally scheduled termination date of October 6, 2025[10] Deposit Cost and Maturity Profile Deposit costs were impacted by industry competition and past liquidity events. While market rates for time deposits have declined, replacement rates for maturing time deposits are expected to be between 3.10-3.60% - The cost of deposits was negatively impacted by high industry competition and lingering effects of liquidity events in March-April 2023[11] - Market rates for time deposits, while elevated for much of 2024, have declined due to FOMC rate cuts (100 bps in late 2024, 25 bps in Q3 2025)[11] Time Deposit Maturities (as of September 30, 2025) | Maturity Period | Amount (millions) | Weighted-Average Rate | | :--- | :--- | :--- | | Within three months | $675 | 3.97% | | Within three to six months | $365 | 3.29% | | Within six to twelve months | $54 | 2.16% | | Expected Replacement Rates | | 3.10-3.60% | Non-Interest Income Non-interest income for Q3 2025 increased by $70,000 to $7.1 million compared to Q3 2024, primarily driven by a $206,000 increase in commission income Non-Interest Income (in thousands) | Metric | Q3 2025 | Q3 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Non-interest income | $7,062 | $6,992 | +$70 | | Commission income | | | +$206 | Non-Interest Expense Non-interest expense increased by $2.4 million to $36.1 million in Q3 2025 compared to Q3 2024, mainly due to higher occupancy and equipment expenses, salaries and employee benefits, legal and professional fees, and expenses on other real estate owned. The efficiency ratio slightly worsened to 62.45% Non-Interest Expense Changes (Q3 2025 vs. Q3 2024, in thousands) | Expense Category | Q3 2025 | Q3 2024 | Change | | :--- | :--- | :--- | :--- | | Total Non-interest expense | $36,116 | $33,717 | +$2,399 | | Net occupancy and equipment expenses | | | +$735 (9.0%) | | Salaries and employee benefits | | | +$636 (3.3%) | | Legal, audit and other professional fees | $1,200 | | +$439 | | Expense on other real estate owned | | | +$394 (73.5%) | - The increase in net occupancy and equipment expenses was primarily due to $637,000 in computer license and support expenses for core systems upgrades and disaster recovery[13] - Salaries and employee benefits increased due to annual merit increases in lending and operations. Legal fees increased by $355,000 due to corporate matters and loan collection activities[13] - The Company's efficiency ratio for Q3 2025 was 62.45%, up from 61.34% in Q3 2024. The ratio of non-interest expense to average assets was 2.50%, up from 2.27% YoY, partly due to a 3.1% decline in average assets[14] Income Taxes The effective tax rate for Q3 2025 was 19.7%, up from 18.0% in Q3 2024, remaining below the statutory federal rate due to investment tax credits and tax-exempt investments/loans. The Company expects its future effective tax rate to be approximately 18.5% to 20.0% Effective Tax Rates | Period | Effective Tax Rate | | :--- | :--- | | Q3 2025 | 19.7% | | Q3 2024 | 18.0% | | YTD Q3 2025 | 19.4% | | YTD Q3 2024 | 18.5% | | Statutory Federal Tax Rate | 21.0% | | Expected Future Rate | 18.5% - 20.0% | - The effective tax rates were below the statutory federal rate of 21.0% due to the utilization of investment tax credits and tax-exempt investments and loans[15] Balance Sheet and Asset Quality Capital The Company's capital position remained strong, with all regulatory capital ratios exceeding thresholds. Stockholders' equity increased by $33.4 million from December 2024, driven by net income and decreased unrealized losses, partially offset by dividends and share repurchases. A new stock repurchase program was approved in April 2025 Consolidated Regulatory Capital Ratios (Preliminary) | Ratio | Sep 30, 2025 | Dec 31, 2024 | Jun 30, 2025 | | :--- | :--- | :--- | :--- | | Tier 1 Leverage Ratio | 11.9% | 11.2% | 11.5% | | Common Equity Tier 1 Capital Ratio | 13.3% | 12.3% | 13.0% | | Tier 1 Capital Ratio | 13.8% | 12.8% | 13.5% | | Total Capital Ratio | 15.1% | 15.4% | 14.7% | | Tangible Common Equity Ratio | 10.9% | 9.9% | 10.5% | Stockholders' Equity and Regulatory Ratios Total stockholders' equity reached $632.9 million (11.0% of total assets) at September 30, 2025, up from $599.6 million at December 31, 2024. This increase was primarily due to $54.7 million in net income and an $18.5 million decrease in net unrealized losses on available-for-sale securities and interest rate swaps - Book value per common share increased to $56.18 at September 30, 2025, from $51.14 at December 31, 2024[16] - Unrealized losses on held-to-maturity investment securities, not included in total capital, decreased from $24.7 million at December 31, 2024, to $17.7 million at September 30, 2025[17] Stock Repurchase Program and Dividends The Company completed its November 2022 stock repurchase program in Q3 2025 and approved a new program in April 2025 authorizing up to one million additional shares. In Q3 2025, 165,116 shares were repurchased at an average price of $60.33, and a quarterly cash dividend of $0.43 per common share was declared - As of September 30, 2025, approximately 929,000 shares remained available under the April 2025 stock repurchase authorization[18] - During the nine months ended September 30, 2025, the Company repurchased 514,458 shares at an average price of $57.89 and declared total cash dividends of $1.23 per common share[20] Liquidity and Deposits The Company maintains sufficient liquidity through customer deposits, FHLBank advances, other borrowings, and unpledged securities. Total deposits decreased by $77.5 million during the first nine months of 2025, primarily due to a $92.1 million decrease in brokered deposits, as the Company elected not to replace some maturing brokered deposits due to declining total assets - Primary sources of funds include customer deposits, FHLBank advances, other borrowings, loan repayments, unpledged securities, and proceeds from sales of loans and available-for-sale securities[21] Available Secured Lines and On-Balance Sheet Liquidity (as of Sep 30, 2025) | Source | Amount (millions) | | :--- | :--- | | Federal Home Loan Bank line | $1,111.0 | | Federal Reserve Bank line | $356.2 | | Cash and cash equivalents | $196.2 | | Unpledged securities – Available-for-sale | $344.3 | | Unpledged securities – Held-to-maturity | $25.6 | Deposit Balances (as of Sep 30, 2025) | Deposit Type | Amount (millions) | | :--- | :--- | | Interest-bearing checking | $2,269.0 | | Non-interest-bearing checking | $855.4 | | Time deposits | $723.7 | | Brokered deposits | $680.0 | | Total Deposits | $4,528.1 | | Uninsured Deposits (excluding consolidated subsidiaries) | $741.9 (16.4% of total deposits) | Loans Total net loans, excluding mortgage loans held for sale, decreased by $222.7 million (4.7%) from December 31, 2024, to $4.47 billion at September 30, 2025, primarily driven by decreases in construction, multi-family, and one-to-four-family residential loans. The pipeline of unfunded loan commitments remained strong Loan Portfolio Changes The decrease in net loans was primarily attributed to reductions of $122.7 million in construction loans, $63.7 million in other residential (multi-family) loans, $36.6 million in one-to-four-family residential loans, and $12.8 million in commercial real estate loans - Compared to June 30, 2025, net loans decreased by $66.6 million[24] Loan Commitments The unfunded portion of loans and formal loan commitments remained strong, with the largest portion ($582.4 million) represented by unfunded construction loans at September 30, 2025 Loan Commitments and Unfunded Portions (in thousands) | Category | Sep 30, 2025 | Jun 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | :--- | | Closed non-construction loans with unused available lines (one- to four-family) | $207,820 | $211,453 | $205,599 | | Closed non-construction loans with unused available lines (commercial business) | $87,205 | $102,891 | $106,621 | | Closed construction loans with unused available lines (one- to four-family) | $88,257 | $96,935 | $94,501 | | Closed construction loans with unused available lines (not one- to four-family) | $600,243 | $644,427 | $703,947 | | Loan commitments not closed (one- to four-family) | $16,923 | $17,148 | $14,373 | | Loan commitments not closed (not one- to four-family) | $27,565 | $13,002 | $53,660 | | Loan commitments not closed (commercial business) | $32,837 | $27,003 | $22,884 | | Total | $1,060,850 | $1,112,859 | $1,201,585 | Provision for Credit Losses and Allowance for Credit Losses The Company recorded no provision expense on its outstanding loan portfolio for Q3 2025 and YTD Q3 2025, compared to $1.2 million and $1.7 million in the respective prior-year periods. Net charge-offs were minimal, and the allowance for credit losses remained adequate at 1.43% of total loans Provision for Credit Losses and Net Charge-offs (in thousands) | Metric | Q3 2025 | Q3 2024 | YTD Q3 2025 | YTD Q3 2024 | | :--- | :--- | :--- | :--- | :--- | | Provision expense on outstanding loans | $0 | $1,200 | $0 | $1,700 | | Total net charge-offs | $66 | $1,500 | $11 | $1,500 | | Negative provision for unfunded commitments | ($379) | ($63) | ($837) | ($540) | - The Bank's allowance for credit losses as a percentage of total loans was 1.43% at September 30, 2025, compared to 1.36% at December 31, 2024, and 1.41% at June 30, 2025[27] - Management considers the allowance for credit losses adequate, but notes that challenging economic conditions could require additional provisions[27][28] Asset Quality Asset quality continued to improve, with non-performing assets decreasing to $7.8 million (0.14% of total assets) at September 30, 2025. Non-performing loans and potential problem loans also saw reductions, reflecting sound underwriting and portfolio management Non-Performing Assets Overview Non-performing assets decreased by $1.8 million from $9.6 million at December 31, 2024, to $7.8 million at September 30, 2025, representing 0.14% of total assets - Non-performing assets also decreased by $273,000 from $8.1 million at June 30, 2025[29] Non-Performing Loans Activity Total non-performing loans decreased by $316,000 compared to June 30, 2025, ending at $1.728 million. The one-to-four-family residential category, consisting of six loans, saw two pay-offs totaling $237,000 Non-Performing Loans Activity (Q3 2025, in thousands) | Category | Beginning Balance (Jul 1) | Additions | Removed | Transfers to Foreclosed Assets | Payments | Ending Balance (Sep 30) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | One- to four-family residential | $2,026 | $1 | $0 | ($69) | ($252) | $1,706 | | Consumer | $18 | $9 | $0 | $0 | ($5) | $22 | | Total non-performing loans | $2,044 | $10 | $0 | ($69) | ($257) | $1,728 | - The largest non-performing one-to-four-family residential relationship totaled $614,000, collateralized by a property in Sarasota, Fla[31] Potential Problem Loans Activity Potential problem loans decreased by $5.8 million compared to June 30, 2025, ending at $1.398 million. This reduction was largely due to the upgrade of a $4.3 million commercial real estate loan relationship and a $963,000 one-to-four-family loan relationship from substandard to special mention or non-classified categories Potential Problem Loans Activity (Q3 2025, in thousands) | Category | Beginning Balance (Jul 1) | Additions | Removed | Loan Advances (Payments) | Ending Balance (Sep 30) | | :--- | :--- | :--- | :--- | :--- | :--- | | One- to four-family residential | $1,839 | $292 | ($963) | ($13) | $1,155 | | Commercial real estate | $4,297 | $0 | ($4,297) | $0 | $0 | | Commercial business | $33 | $0 | $0 | ($33) | $0 | | Consumer | $1,037 | $10 | ($784) | ($20) | $243 | | Total potential problem loans | $7,206 | $302 | ($6,044) | ($43) | $1,398 | - The upgraded commercial real estate relationship involved three nursing care facilities in southwest Missouri. The upgraded one-to-four-family relationship involved multiple single-family residential properties in Indiana and Florida[33] Foreclosed Assets and Repossessions Activity Foreclosed assets and repossessions increased by $43,000 compared to June 30, 2025, reaching $6.083 million. The largest asset in this category is a $6.0 million office building in Clayton, Mo., foreclosed in Q4 2024 Foreclosed Assets and Repossessions Activity (Q3 2025, in thousands) | Category | Beginning Balance (Jul 1) | Additions | Sales | Ending Balance (Sep 30) | | :--- | :--- | :--- | :--- | :--- | | One- to four-family residential | $0 | $69 | ($69) | $0 | | Commercial real estate | $6,036 | $0 | $0 | $6,036 | | Consumer | $4 | $71 | ($28) | $47 | | Total foreclosed assets and repossessions | $6,040 | $140 | ($97) | $6,083 | Business Operations and Corporate Information Business Initiatives The Company is advancing technology initiatives with its core provider, including customer-facing online services and a treasury management platform overhaul. A new next-generation banking center in Springfield, Mo., is nearing completion, designed to test new processes and innovations - Projects to improve customer-facing online services and deliver a full overhaul of the Company's treasury management services platform are moving to the trial phase[35] - Construction of a new next-generation banking center at 723 N. Benton in Springfield, Mo., is nearly complete, with a grand opening scheduled for late October. This facility will allow the Company to test new processes and innovations[36] Earnings Conference Call Great Southern Bancorp, Inc. will host a conference call on Thursday, October 16, 2025, at 2:00 p.m. Central Time to discuss its third quarter 2025 preliminary earnings - The call will be available live or in a recorded version on the Company's Investor Relations website[37] About Great Southern Bancorp, Inc. Great Southern Bancorp, Inc., headquartered in Springfield, Missouri, offers a broad range of banking services. It operates 89 retail banking centers across six states and commercial lending offices in several major cities. Its common stock is listed on the Nasdaq Global Select Market under the symbol "GSBC" - The Company operates 89 retail banking centers in Missouri, Iowa, Kansas, Minnesota, Arkansas, and Nebraska[39] - Commercial lending offices are located in Atlanta, Charlotte, Chicago, Dallas, Denver, Omaha, and Phoenix[39] Forward-Looking Statements This section contains forward-looking statements, which are subject to inherent uncertainties and risks that could cause actual results to differ materially from expectations. Key factors include economic conditions, interest rate fluctuations, bank failures, lending risks, regulatory changes, and cybersecurity threats. The Company disclaims any obligation to update these statements - Forward-looking statements are identified by words like "may," "might," "could," "should," "will likely result," "are expected to," "will continue," "is anticipated," "believe," "estimate," "project," "intends" or similar expressions[40] - Factors that could cause differences include changes in economic conditions, interest rate fluctuations, impact of bank failures, lending and investing risks, liquidity access, real estate values, technological changes, cybersecurity risks, legislative/regulatory changes, and litigation costs[41] - The Company does not undertake any obligation to publicly release revisions to forward-looking statements to reflect events or circumstances after the date of such statements[42] Selected Financial Data and Non-GAAP Measures Selected Quarterly and Nine-Month Financial Data This section presents selected consolidated financial information, including financial condition data, operating data, per common share metrics, earnings performance ratios, and asset quality ratios for various quarterly and nine-month periods. All data, except for December 31, 2024, is unaudited Selected Financial Condition Data (in thousands) | Metric | Sep 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total assets | $5,737,867 | $5,981,628 | | Loans receivable, gross | $4,538,114 | $4,761,848 | | Allowance for credit losses | $64,749 | $64,760 | | Deposits | $4,528,033 | $4,605,549 | | Total borrowings | $494,355 | $679,341 | | Total stockholders' equity | $632,926 | $599,568 | | Non-performing assets | $7,811 | $9,566 | Selected Operating Data (in thousands, except per share data) | Metric | Q3 2025 | Q3 2024 | YTD Q3 2025 | YTD Q3 2024 | Q2 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | Net interest income | $50,773 | $47,975 | $151,070 | $139,609 | $50,963 | | Net income | $17,752 | $16,490 | $54,698 | $46,885 | $19,786 | | Earnings per diluted common share | $1.56 | $1.41 | $4.74 | $3.99 | $1.72 | | Book value per common share | $56.18 | $52.40 | $56.18 | $52.40 | $54.61 | | Annualized return on average assets | 1.23% | 1.11% | 1.24% | 1.07% | 1.34% | | Net interest margin | 3.72% | 3.42% | 3.66% | 3.39% | 3.68% | | Efficiency ratio | 62.45% | 61.34% | 61.26% | 64.05% | 59.16% | | Allowance for credit losses to period-end loans | 1.43% | 1.36% | 1.43% | 1.36% | 1.41% | | Non-performing assets to period-end assets | 0.14% | 0.13% | 0.14% | 0.13% | 0.14% | Consolidated Statements of Financial Condition The consolidated statements of financial condition provide a detailed breakdown of the Company's assets, liabilities, and stockholders' equity at September 30, 2025, December 31, 2024, and June 30, 2025 Consolidated Statements of Financial Condition (in thousands) | Metric | Sep 30, 2025 | Dec 31, 2024 | Jun 30, 2025 | | :--- | :--- | :--- | :--- | | Assets | | | | | Cash and cash equivalents | $196,235 | $195,756 | $245,913 | | Available-for-sale securities | $531,348 | $533,373 | $527,543 | | Held-to-maturity securities | $181,315 | $187,433 | $183,100 | | Loans receivable, net | $4,467,683 | $4,690,393 | $4,534,287 | | Total Assets | $5,737,867 | $5,981,628 | $5,854,672 | | Liabilities | | | | | Deposits | $4,528,033 | $4,605,549 | $4,684,126 | | Short-term borrowings | $425,907 | $514,247 | $369,907 | | Subordinated notes | $0 | $74,876 | $0 | | Total Liabilities | $5,104,941 | $5,382,060 | $5,232,304 | | Stockholders' Equity | | | | | Total Stockholders' Equity | $632,926 | $599,568 | $622,368 | Consolidated Statements of Income The consolidated statements of income provide a detailed breakdown of the Company's revenues and expenses, leading to net income, for the three and nine months ended September 30, 2025 and 2024, and the three months ended June 30, 2025 Consolidated Statements of Income (in thousands, except per share data) | Metric | Q3 2025 | Q3 2024 | YTD Q3 2025 | YTD Q3 2024 | Q2 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | Interest Income | $79,079 | $83,796 | $240,297 | $242,113 | $80,975 | | Interest Expense | $28,306 | $35,821 | $89,227 | $102,504 | $30,012 | | Net Interest Income | $50,773 | $47,975 | $151,070 | $139,609 | $50,963 | | Provision for Credit Losses on Loans | $0 | $1,200 | $0 | $1,700 | $0 | | Non-interest Income | $7,062 | $6,992 | $21,864 | $23,631 | $8,212 | | Non-interest Expense | $36,116 | $33,717 | $105,943 | $104,548 | $35,005 | | Income Before Income Taxes | $22,098 | $20,113 | $67,828 | $57,532 | $24,280 | | Provision for Income Taxes | $4,346 | $3,623 | $13,130 | $10,647 | $4,494 | | Net Income | $17,752 | $16,490 | $54,698 | $46,885 | $19,786 | | Diluted Earnings Per Common Share | $1.56 | $1.41 | $4.74 | $3.99 | $1.72 | | Dividends Declared Per Common Share | $0.43 | $0.40 | $1.23 | $1.20 | $0.40 | Average Balances, Interest Rates and Yields This section details the average balances of interest-earning assets and interest-bearing liabilities, along with their corresponding interest income/expense, yields, and rates, for the three and nine months ended September 30, 2025 and 2024. It also presents the net interest margin and interest rate spread Average Balances, Interest Rates and Yields (Q3 2025 vs. Q3 2024, in thousands) | Metric | Q3 2025 Average Balance | Q3 2025 Interest | Q3 2025 Yield/Rate | Q3 2024 Average Balance | Q3 2024 Interest | Q3 2024 Yield/Rate | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Interest-earning assets: | | | | | | | | Total loans receivable | $4,598,913 | $72,028 | 6.11% | $4,723,587 | $76,425 | 6.44% | | Investment securities | $722,880 | $6,081 | 3.20% | $758,793 | $6,092 | 3.19% | | Total interest-earning assets | $5,414,821 | $79,079 | 5.69% | $5,579,021 | $83,796 | 5.98% | | Interest-bearing liabilities: | | | | | | | | Total deposits | $3,830,345 | $23,984 | 2.28% | $3,812,779 | $28,486 | 2.97% | | Total interest-bearing liabilities | $4,228,288 | $28,306 | 2.50% | $4,398,634 | $35,821 | 3.24% | | Net interest income | | $50,773 | | | $47,975 | | | Interest rate spread | | | 3.19% | | | 2.74% | | Net interest margin | | | 3.72% | | | 3.42% | Average Balances, Interest Rates and Yields (YTD Q3 2025 vs. YTD Q3 2024, in thousands) | Metric | YTD Q3 2025 Average Balance | YTD Q3 2025 Interest | YTD Q3 2025 Yield/Rate | YTD Q3 2024 Average Balance | YTD Q3 2024 Interest | YTD Q3 2024 Yield/Rate | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Interest-earning assets: | | | | | | | | Total loans receivable | $4,695,303 | $218,929 | 6.11% | $4,693,312 | $221,796 | 6.31% | | Total interest-earning assets | $5,523,165 | $240,297 | 5.69% | $5,499,890 | $242,113 | 5.88% | | Interest-bearing liabilities: | | | | | | | | Total deposits | $3,864,918 | $72,952 | 2.28% | $3,825,200 | $83,906 | 2.93% | | Total interest-bearing liabilities | $4,355,932 | $89,227 | 2.50% | $4,331,830 | $102,504 | 3.16% | | Net interest income | | $151,070 | | | $139,609 | | | Interest rate spread | | | 3.19% | | | 2.72% | | Net interest margin | | | 3.66% | | | 3.39% | Non-GAAP Financial Measures: Tangible Common Equity to Tangible Assets This section provides a reconciliation of the non-GAAP financial measure, the ratio of tangible common equity to tangible assets. Management uses this metric to assess the utilization of tangible capital and capital strength, believing it offers useful supplemental information for understanding financial condition and comparing performance with peers - The ratio of tangible common equity to tangible assets is calculated by subtracting period-end intangible assets from common equity and total assets[60] - Management believes this non-GAAP measure provides useful supplemental information for understanding financial condition, assessing management's success in utilizing tangible capital, and comparing performance with peers[60] Non-GAAP Reconciliation: Ratio of Tangible Common Equity to Tangible Assets (in thousands) | Metric | Sep 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Common equity at period end | $632,926 | $599,568 | | Less: Intangible assets at period end | $9,769 | $10,094 | | Tangible common equity at period end (a) | $623,157 | $589,474 | | Total assets at period end | $5,737,867 | $5,981,628 | | Less: Intangible assets at period end | $9,769 | $10,094 | | Tangible assets at period end (b) | $5,728,098 | $5,971,534 | | Tangible common equity to tangible assets (a) / (b) | 10.88% | 9.87% |