Core Insights - Coop Pank has shown growth in customer base and financial metrics, indicating a positive trend in its operations and market position [1][5][9]. Customer Growth - By the end of Q3 2025, Coop Pank had 222,000 customers, an increase of 4,000 customers in the quarter (+2%) and 20,000 customers year-over-year (+10%) [1]. - The number of active customers reached 105,400, with an increase of 1,800 in the quarter (+2%) and 10,000 year-over-year (+10%) [1]. Deposit Volume - In Q3 2025, the volume of deposits increased by 105 million euros (+6%), totaling 1.91 billion euros [2]. - Deposits from private customers rose by 9 million euros, while deposits from domestic business customers increased by 24 million euros [2]. - Compared to Q3 2024, total deposits grew by 83 million euros (+5%) [2]. Loan Portfolio - The net loan portfolio increased by 80 million euros (+4%) in Q3 2025, reaching 2.0 billion euros [3]. - Business loans showed the strongest growth, increasing by 48 million euros (+6%), while home loans rose by 32 million euros (+4%) [3]. - Year-over-year, the total loan portfolio grew by 362 million euros (+22%) [3]. Financial Performance - Net income for Q3 2025 was 19.5 million euros, unchanged from the previous quarter but down 8% year-over-year [5]. - The net profit for the quarter was 7 million euros, a 5% increase from the previous quarter but a 19% decrease compared to the same period last year [5]. - The cost-to-income ratio was 54%, and return on equity was 12.5% [5]. Overdue Loans and Impairment - The overdue loan portfolio stood at 2.3%, slightly improved from 2.4% a year ago [4]. - Impairment costs for financial assets were 0.7 million euros, higher than the previous quarter and the same quarter last year [4]. Management Changes - Coop Pank underwent changes in its Management Board, appointing Arko Kurtmann as the new Chairman and adding new members to strengthen the executive team [10]. Strategic Developments - Coop Pank opened state accounts, becoming the second domestically owned bank in Estonia to do so, enhancing its service offerings [11][12]. - The bank's growing business volumes and effective cost management contributed to its solid net profit [12].

Financial Data and Key Metrics Changes - The company reported a record earnings per share of $2.84 for Q3 2025, with net income of $35.9 million, showing significant improvement compared to previous quarters [4] - Non-performing loans decreased from $52 million to $17 million, primarily due to the foreclosure of a $37 million loan, which was subsequently sold for a gain [4] - Loan growth was 2.3% ($133 million) and deposit growth was 2.5% ($151 million) during the quarter [5] - The efficiency ratio improved to less than 30%, with stable operating overhead compared to previous quarters [5][6] Business Line Data and Key Metrics Changes - The company experienced reasonable loan and deposit growth, indicating increased optimism among customers despite ongoing economic uncertainties [5] - The net interest income and net interest margin both improved in Q3 compared to previous quarters [5] Market Data and Key Metrics Changes - Approximately 29% of the loan portfolio is fixed rate or long adjustable, while 71% is floating rate, with 98% of the floating rate loans having floors [12] - The average margin for September was reported at 3.87%, with a cost of deposits at 3.36% [24] Company Strategy and Development Direction - The company aims to maintain loan growth in Q4 2025, hoping to match Q3 levels, while also managing interest rate sensitivity through a balanced loan portfolio [35][55] - There is a strategic focus on increasing demand deposits, which are becoming harder to acquire due to competitive pressures [39] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about loan growth in Q4, influenced by potential interest rate cuts and seasonal factors [35] - The company is closely monitoring credit quality and expects to see reasonable migration in criticized and classified loans [27][29] Other Important Information - The company repurchased $6.3 million of its own shares during the quarter and continued to buy back shares in October, totaling 128,000 shares for $11.2 million [6][17] - An error in calculating diluted earnings per share for the first half of 2025 was corrected, resulting in an underreporting of net income by $0.05 [6] Q&A Session Summary Question: Update on loan portfolio's floating rate component - Approximately 71% of the loan portfolio is floating rate, with 98% having floors, but many are not currently in the money [12] Question: Price sensitivity around the buyback - The buyback strategy is assessed based on income levels and share prices, with no set formula [13] Question: Average margin and cost of deposits - The margin for September was 3.87%, and the cost of deposits was 3.36% [24] Question: Expectations for loan growth and pipelines - The company expects loan growth to remain stable, with a positive outlook for Q4 based on current activity levels [35] Question: Near-term expense run rate expectations - Non-interest expenses are expected to be around $22 million to $22.5 million going forward [37] Question: Specific dollar estimate of expected OREO gain in Q4 - The expected OREO gain in Q4 is projected to be in the $3 to $4 million range [41] Question: Competitive dynamics and loan demand - The company is seeing more deals coming through the pipeline, with optimism from borrowers due to rate cuts [50][51] Question: Actions to manage asset sensitivity - The company continues to proactively manage interest rate sensitivity, adjusting the loan portfolio as needed [55]

Financial Data and Key Metrics Changes - Wintrust reported a record net income of $216 million for Q3 2025, up from over $195 million in the previous quarter, representing an increase of almost 11% quarter over quarter [4] - Net interest income increased by $20 million from the second quarter to $567 million, driven by solid loan and overall balance sheet growth [5] - Total loans reached $52 billion at quarter end, reflecting an 11% year-to-date increase on an annualized basis [5] - Total deposits were nearly $57 billion at the end of Q3, with deposit growth of just under $900 million [5][9] - Net interest margin was 3.50% for the quarter, slightly down from the prior quarter but within the targeted range [6] Business Line Data and Key Metrics Changes - Loan growth for the quarter was broad-based, with commercial real estate loans growing by $327 million and Wintrust Life Finance growing by $252 million [14] - Non-interest income totaled $130.8 million in Q3, up approximately $6.7 million compared to the prior quarter, supported by higher wealth management and mortgage revenue [11] - Non-interest expenses totaled $380 million, a slight decline from $381.5 million in the previous quarter, indicating well-controlled expenses [11] Market Data and Key Metrics Changes - Wintrust achieved deposit share gains in key markets, ranking third in deposit market share in Illinois, up one position [7] - The company continues to see strong growth in its franchises in Wisconsin and West Michigan, with significant upside potential [7] Company Strategy and Development Direction - The company remains focused on core deposit growth as a key tenet of its franchise, emphasizing a relationship-based approach in its core Midwestern markets [7][19] - Wintrust aims to continue generating loan and deposit growth in the mid to high single-digit range while maintaining a stable net interest margin [18] - The management is committed to disciplined underwriting and is cautious about taking risks that do not meet their standards [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of net interest margin despite potential rate cuts by the Fed, citing a balanced approach to managing deposit costs [32][68] - The overall credit environment remains stable, with proactive measures in place to address any challenges [17] - Management noted a sense of measured optimism among customers as they approach year-end, indicating strong portfolio performance [17] Other Important Information - The company has consistently grown tangible book value per share every year since going public and is on track to do so again in 2025 [12] - A one-time impact from preferred stock redemption reduced fully diluted net income per common share by $0.28 in Q3, but the adjusted figure would have been $3.06 without this impact [13] Q&A Session Summary Question: Can you talk about loan growth drivers and pipelines? - Management noted a unique market positioning in Chicago, gaining market share from larger banks, with stable pipelines for C&I and CRE loans [25][29] Question: How do you feel about holding the margin in the current range with potential Fed rate cuts? - Management expressed confidence in maintaining the margin around $350, citing effective management of deposit costs and a balanced loan portfolio [32][33] Question: What is the strategy for commercial loan growth? - Management indicated that the decline in commercial loan growth was more about timing than market competition, with consistent opportunities in the pipeline [37] Question: Are there any segments or industries where you are pulling back on lending? - Management stated they are closely monitoring higher education and healthcare sectors but are not pulling back from lending in general [94] Question: How do you view the competitive landscape among banks? - Management noted that the competitive environment remains rational, with no significant changes among larger and smaller banks [110]

Financial Data and Key Metrics Changes - The company reported net income of $109.8 million or $1.6 per diluted share in the second quarter, a notable 21% increase year-over-year [10] - Return on assets (ROA) improved to 1.65%, and return on tangible common equity rose to 15.8% [11] - Efficiency ratio improved to 51.63% from 52.83% in the previous quarter, indicating better operating leverage [10][11] - Tangible book value per share increased to $41.32, reflecting a strong 15.5% annualized growth [11] Business Line Data and Key Metrics Changes - Loan growth was primarily driven by commercial and industrial (C&I) loans, with a total loan production of $1.9 billion, up from $1.5 billion in the previous quarter [16] - Non-interest income increased by approximately $4.9 million, largely due to a 36% growth in mortgage production [14] - Total non-interest expense rose by $4.2 million, mainly due to higher salaries and employee benefits related to increased mortgage production [14] Market Data and Key Metrics Changes - Non-interest bearing deposits grew over 3% annualized, increasing their share to 31% of total deposits from 30.8% in the previous quarter [17] - The company experienced a seasonal decline in cyclical municipal deposits, offset by an increase in broker deposits [17] Company Strategy and Development Direction - The company remains focused on organic growth, with plans to utilize excess capital for growth opportunities, stock buybacks, and dividends [28][29] - Management emphasized the importance of maintaining a strong core deposit base and leveraging growth in attractive Southeastern markets [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for the remainder of 2025 and into 2026, citing a robust margin, strong capital, and liquidity [9] - There is a cautious but positive outlook on loan growth, with expectations for mid-single-digit growth in loans and deposits [18] Other Important Information - The company repurchased approximately $12.8 million in common stock during the quarter [11] - The provision for credit losses was $2.8 million, with reserves remaining strong at 162% of loans [15] Q&A Session Summary Question: Loan growth trends and competition - Management noted a resurgence in loan activity and expected third-quarter activity to be similar to the second quarter, with increased competition [24][25] Question: Future growth opportunities and capital deployment - The company plans to focus on organic growth first, with stock buybacks and dividends as secondary options, while being cautious about M&A [27][29] Question: Deposit growth and margin outlook - Management indicated that deposit growth would continue, with a focus on non-interest bearing deposits, and anticipated some pressure on deposit costs [44][46] Question: Mortgage segment trends and capacity - The company is prepared for a potential refinancing wave and has the capacity to handle increased production without needing additional hires [66][67] Question: Overall competitive landscape and charge-offs - Management observed increased competition beyond pricing, with a focus on treasury management and deposit growth [55][56]

Financial Data and Key Metrics Changes - The company reported net income of $18.3 million or $0.67 per diluted share, with a return on average assets of 1% and return on average equity of 13.04% [12] - Net interest income increased by 3.6% quarter over quarter to $59.8 million, with net interest margin expanding by 13 basis points to 3.44% [13] - Total other operating income was $13 million, reflecting a $1.9 million increase quarter over quarter [13] Business Line Data and Key Metrics Changes - The loan portfolio slightly declined to $5.29 billion, with growth in construction and consumer loans, while other categories saw declines [10] - Total deposits were $6.54 billion, also showing a slight decline from the prior quarter, but with a favorable shift towards noninterest-bearing deposits [11] Market Data and Key Metrics Changes - Hawaii's construction industry showed solid performance with completed construction reaching $14 billion in 2024, with steady growth expected in 2025 [6] - Visitor arrivals in Hawaii were up 2.8% year to date, with total visitor spending increasing by 6.5% compared to the prior year [7] - The unemployment rate in Hawaii remained low at 2.8%, outperforming the national rate of 4.1% [7] Company Strategy and Development Direction - The company aims to deepen customer relationships and grow market share in Hawaii, select Mainland markets, and Asia, targeting low single-digit growth for loans and deposits in 2025 [10] - The focus remains on managing the cost of funds while growing core deposits in a competitive environment [11] Management's Comments on Operating Environment and Future Outlook - Management maintains a cautiously optimistic outlook for Hawaii's economy, acknowledging potential headwinds but emphasizing sound fundamental economic drivers [9] - The company is confident in its core business environment and sees opportunities ahead despite a muted loan growth in the first half of 2025 [10] Other Important Information - The effective tax rate was 23.5% in the second quarter, expected to remain between 22% and 24% [14] - The company repurchased approximately 103,000 shares of common stock at a total cost of $2.6 million [14] - A quarterly cash dividend of $0.27 per share was declared, payable on September 15 [15] Q&A Session Summary Question: Growth trends and client demand - Management noted that loan growth was muted in the first half but expects a robust pipeline and strong net loan growth in July, contributing to revenue growth in the second half [25][27] Question: Competition in the market - Competition remains average in the Hawaii banking market, with no significant changes in strategy from competitors [30] Question: Non-interest bearing deposit growth - The company is focused on growing low-cost core deposits through relationship management and prospecting, which has shown early success [34] Question: Expense run rate and investments - The near-term guidance for total other operating expenses is projected to be between $43.5 million and $44.5 million per quarter, excluding one-time impacts [37] Question: Credit quality and concerns - Management indicated that the uptick in credit metrics is not systemic and that expected losses remain within risk appetite, with no anticipated losses from downgraded loans [40][41]

Financial Data and Key Metrics Changes - West Bancorporation reported a net income of $8 million for Q2 2025, an increase from $7.8 million in Q1 2025 and $5.2 million in Q2 2024, indicating a year-over-year improvement of approximately 54% in first half earnings [4][19] - The loan portfolio yield improved to 5.59% in Q2 2025 from 5.52% in Q1 2025, reflecting the benefits of asset repricing [20] - Core deposit balances increased by approximately $195 million in Q2 2025, contributing to a reduction in brokered funding by about $127 million [18][19] Business Line Data and Key Metrics Changes - Loan outstandings decreased slightly to just under $3 billion, attributed to larger payoffs from asset sales and refinancing activities [11][12] - Deposit balances increased by over $67 million during the quarter, with a focus on attracting new depositors [12] Market Data and Key Metrics Changes - The commercial real estate portfolio is improving, with a loan-to-value ratio of 65% and a debt service coverage ratio of 1.35 times [9] - The office property market in Des Moines is facing challenges, with significant vacancy issues affecting the overall market [8] Company Strategy and Development Direction - The company is focused on relationship building and deposit growth, with an emphasis on maintaining strong asset quality [5][9] - There are ongoing efforts to attract high-value retail deposits and business banking opportunities, particularly in the Minnesota market [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the pipeline for loan growth, indicating a robust number of projects and opportunities despite some headwinds from payoffs [22] - The company anticipates margin improvement in the second half of the year due to continued asset repricing [23][24] Other Important Information - The company declared a dividend of $0.25 per share, payable on August 20, 2025, with a current stock yield exceeding 5% [5] Q&A Session Summary Question: Client sentiment and loan growth pipeline outlook - Management noted a robust pipeline with many projects and opportunities to maintain and grow the loan portfolio [22] Question: Margin trajectory in the second half of the year - Management sees potential for margin improvement due to asset repricing, regardless of Fed rate cuts [23][24] Question: Opportunities for hiring and expanding in northern markets - There are opportunities in the marketplace, especially due to M&A activity and larger banks abandoning regional centers [25] Question: Deposit growth opportunities in the second half of the year - The focus remains on growing deposit relationships alongside credit relationships [27] Question: Expense run rate for the second half of the year - The second quarter's expense run rate is expected to be a good indicator for the second half, with no significant items anticipated [28]

Financial Data and Key Metrics Changes - The company reported an EPS of $0.83 and net income of $32 million, with a return on assets (ROA) of 1.32% and a pre-provision net revenue (PPNR) of 1.73% [8][19] - Net interest income increased by $3.3 million, or 3.9%, compared to the first quarter, with a net interest margin (NIM) expansion to 3.88%, up seven basis points [14][18] - Total assets exceeded $9.8 billion, driven by a 5% increase in loans [6][8] Business Line Data and Key Metrics Changes - Annualized loan growth was just over 5%, amounting to $98 million in Q2, primarily driven by commercial real estate balances, which increased by $58 million [9][10] - The mortgage and home equity businesses contributed a combined net growth of $26 million [10] - Customer deposit growth was $28 million, or 1.42% annualized, with non-interest bearing deposits representing 28% of total deposits [11][12] Market Data and Key Metrics Changes - The company maintained a stable allowance for credit losses at 1.24% of total loans, with non-performing assets (NPAs) remaining low [12][39] - The competitive landscape varies geographically, with the company maintaining significant market share in its core markets while being a disruptor in Ohio [64] Company Strategy and Development Direction - The company is focused on organic growth, with a clear path to reach $10 billion in total assets through loan growth and strategic initiatives [6][19] - There is an ongoing emphasis on improving asset quality and maintaining a solid deposit mix, with a disciplined approach to potential inorganic growth opportunities [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future loan growth, expecting to maintain a mid to high single-digit growth rate for the remainder of the year [25][50] - The company is actively monitoring the impact of economic changes and tariffs but has not seen significant adverse effects on growth [12][39] Other Important Information - The company added four new commercial bankers to enhance its commercial and industrial (C&I) lending efforts [10][53] - The tangible common equity (TCE) ratio increased by 18 basis points, positioning the company well for growth opportunities [18][19] Q&A Session Summary Question: What is the outlook for funding costs and loan growth? - Management indicated that successful deposit raising efforts could offset some pressure on margins, but growth might be slightly lower than the current NIM of 3.88% [23] Question: Can you clarify the potential upside in a higher for longer interest rate environment? - Management noted that benefits from repricing on loans and securities could yield a couple of basis points of upside, but it would not be significant [24] Question: What is the company's strategy regarding M&A? - Management confirmed that building long-term relationships is critical, and they are optimistic about participating in M&A as market uncertainty decreases [29] Question: How does the company view its credit quality and reserves? - Management aims to stabilize non-performing loans (NPLs) and maintain low charge-offs, with reserves currently at 1.24% of loans [39][42] Question: What is the expected impact of crossing the $10 billion asset threshold? - The Durbin hit is estimated between $6 million and $7 million annually, but the company has built infrastructure to manage this without significant additional expenses [43][56] Question: What are the primary drivers of loan growth in the second half of the year? - Management highlighted consistent growth across various business lines, particularly in commercial real estate and home equity, with a focus on maintaining strong pipelines [50][51]

Financial Data and Key Metrics Changes - The company reported net income of $133 million or $0.22 per diluted share, compared to $106 million and $0.18 in the previous quarter, reflecting solid momentum in net interest income and non-interest income [4] - Adjusted net income was $134 million or $0.23 per share, up from $106 million on both reported and adjusted basis a quarter ago [4] - Profitability ratios, including return on average assets and return on tangible shareholders' equity, continue to trend higher and are on track to meet full year guidance [5] Business Line Data and Key Metrics Changes - Core deposit growth was $600 million, driven by growth in commercial non-interest bearing deposits and promotional CD offerings [14] - Non-interest income has grown at a 12% annual rate since 2017, more than double the pace of peers, with a significant improvement in the composition of that income [9][20] - C&I loan growth was particularly strong, with over $700 million growth, primarily from fund finance and healthcare verticals [50] Market Data and Key Metrics Changes - The company has added over 105,000 new deposit accounts, contributing to approximately 8% core deposit growth [6] - The geographic footprint combined with specialty verticals like healthcare and fund finance has provided flexibility and scale [8] - The CRE concentration ratio has declined to 349% from 474% at the end of 2023, surpassing year-end targets ahead of schedule [17] Company Strategy and Development Direction - The company is focused on deposit growth and funding transformation, with a deliberate investment in talent, technology, and targeted market penetration [6][10] - The strategic imperatives aim to transform Valley into a more diversified, efficient, and valuable institution, with a focus on capital markets, treasury management, and tax credit advisory offerings [10] - The company recognizes a disconnect between the quality of its franchise and the valuation of its shares, believing that continued execution of its strategy will close that gap over time [11] Management's Comments on Operating Environment and Future Outlook - Management anticipates continued net interest margin expansion driven by asset repricing and stable deposit pricing [27][28] - The outlook for loan growth is approximately 3% for the year, with net interest income growth estimates refined to a range of 8% to 10% [13] - Management expressed confidence in the credit outlook, expecting further normalization and a decline in provision and charge-offs throughout the year [22] Other Important Information - The company has grown cumulative tangible book value with dividends over 105% during the CEO's tenure, approximately 15% greater than the peer median [11] - The company remains extremely well capitalized relative to its risk profile, with ample flexibility to support strategic objectives [23] Q&A Session Summary Question: Can you speak to the ability to maintain deposit pricing given competitive nature and growth outlook? - Management anticipates margin will increase as the year progresses, driven by asset repricing and stability on the deposit side [27][28] Question: Can you provide comments about new non-accrual formation in the quarter? - The increase in delinquencies was driven by three credits, with two already cleared and the remaining expected to be resolved soon [51][52] Question: How is the competitive landscape in the technology and software sector affecting the company? - The company has built infrastructure to leverage its position in the technology sector, particularly through the acquisition of a team with strong market connections [39][40] Question: What are the expectations for loan growth in 2026? - While specific guidance for 2026 has not been provided, management anticipates low single-digit growth in CRE and overall loan growth could be closer to 5% [77]

Financial Data and Key Metrics Changes - The company reported a net income of $56.4 million for Q2 2025, an increase of $17 million or 43% from the previous year, with a return on assets of 1.23% and an efficiency ratio of 54% [4][5] - Year-to-date net income totaled $111.2 million, up $24.3 million or 28% from the first half of 2024, with earnings per share increasing by 30% to $1.92 [5] - The tangible common equity ratio stands at 8.92%, above the target level, providing optimal capital flexibility [5][18] Business Line Data and Key Metrics Changes - Commercial loan growth was strong, with $262 million for the quarter and $430 million year-to-date, reflecting over 10% annualized growth [8][19] - The consumer segment also contributed with $36 million in loan growth for the quarter, driven by residential mortgage and HELOC [9] - Total revenues in Q2 increased significantly, with net interest income rising by $2.7 million and non-interest income by $1.3 million [12] Market Data and Key Metrics Changes - The company experienced balanced loan growth across its portfolio, with a $298 million increase quarter-over-quarter, representing a 9.2% annualized growth [19] - The Midwest economies are expanding, contributing to the growth in client businesses and new relationships [8] Company Strategy and Development Direction - The company remains focused on commercial growth across its primary markets of Indiana, Michigan, and Ohio, with a strategy emphasizing organic growth before considering mergers and acquisitions [7][25] - The company has been selective in M&A, focusing on organic growth while monitoring potential acquisition opportunities [25][54] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about maintaining loan growth and increasing market share activities through the third quarter, despite competitive deposit dynamics [9][16] - The company anticipates modest margin compression in the latter half of the year due to rising deposit costs, but expects to continue growing net interest income [29][62] Other Important Information - The company repurchased $22.1 million worth of shares in the quarter, totaling $31.7 million year-to-date [5] - The total cost of deposits increased by seven basis points to 2.3%, reflecting competitive pressures in the market [16] Q&A Session Summary Question: Margin outlook and funding cost pressures - Management indicated that deposit costs have risen due to strong loan growth, leading to expectations of modest margin compression in the latter half of the year [29][62] Question: Loan growth sustainability - Management confirmed that the current loan growth is core and driven by direct client needs, with some pull-through from earlier in the year due to tariff considerations [30][31] Question: Wealth management fees and total fee income outlook - Management expects non-interest income to grow in the mid-single digits in the latter half of the year, with wealth management fees remaining a primary driver [38][39] Question: Technology upgrades benefits - Management highlighted improvements in internal technology that enhance operational efficiency and customer service, contributing to future growth [40][44] Question: Capital deployment strategy - The company plans to use a third of its earnings for balance sheet growth, a third for dividends, and the remaining third for other capital activities, including share repurchases and potential acquisitions [49][50] Question: Credit and provision outlook - Management indicated that the current provision level is appropriate for anticipated growth, with adjustments based on macroeconomic forecasts [85] Question: Fixed rate loan repricing - Management noted that approximately $200 million of fixed-rate loans will reprice in the back half of 2025, with expectations for similar levels in the following year [103][104]

Financial Data and Key Metrics Changes - The company reported a net income of $56.4 million for Q2 2025, an increase of $17 million or 43% from the previous year, with a return on assets of 1.23% and an efficiency ratio of 54% [4][5] - Year-to-date net income totaled $111.2 million, up $24.3 million or 28% from the first half of 2024, with earnings per share increasing to $1.92, a rise of $0.44 or 30% [5] - The tangible common equity ratio stands at 8.92%, above the target level, providing optimal capital flexibility [5][19] Business Line Data and Key Metrics Changes - Commercial loan growth was strong, with $262 million for the quarter, representing over 10% annualized growth, and $430 million year-to-date, at 9% annualized [7] - The consumer segment contributed $36 million in loan growth for the quarter, driven by residential mortgage, HELOC, and private banking relationships [8] - Total revenues in Q2 increased, with net interest income growing by $2.7 million and non-interest income by $1.3 million [12] Market Data and Key Metrics Changes - The commercial segment was the primary driver of deposit growth, contributing $347 million in total deposits for the quarter [9] - Non-maturity deposit balances increased by $108 million year-to-date, indicating a focus on low-cost deposit categories [11] - The total cost of deposits rose by seven basis points to 2.3%, reflecting competitive deposit dynamics [16] Company Strategy and Development Direction - The company maintains a commercially focused strategy across all business segments, primarily in Indiana, Michigan, and Ohio [6] - There is a strong emphasis on organic growth, with selective mergers and acquisitions considered only when beneficial [26] - The company is focused on enhancing its technology infrastructure to improve operational efficiency and customer service [44][48] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about maintaining loan growth and increasing market share, supported by a strong pipeline [8][20] - The company anticipates modest margin compression in the latter half of the year due to rising deposit costs and competitive pressures [31][64] - The outlook for non-interest income is expected to grow in the mid-single digits for the second half of the year [42] Other Important Information - The company repurchased $22.1 million worth of shares in the quarter, totaling $31.7 million year-to-date [5] - The allowance for credit losses was $195.3 million, with a coverage ratio of 1.47, reflecting improvements in non-performing loans [15][19] Q&A Session Summary Question: Margin outlook and funding costs - Management noted that deposit costs have risen due to strong loan growth, leading to expectations of modest margin compression in the second half of the year [31][64] Question: Loan growth sustainability - Management views the current loan growth as core and driven by direct client needs, with some pull-through effects from earlier in the year [32][33] Question: Wealth management fees and total fee income outlook - Non-interest income is expected to grow in the mid-single digits, with wealth management fees remaining flat year-over-year [42][43] Question: Technology upgrades benefits - The company has implemented internal technology improvements to enhance efficiency and customer service, with positive early results [44][48] Question: Capital deployment strategy - The company plans to use a third of earnings for balance sheet growth, a third for dividends, and the remaining third for other capital activities, including share repurchases and potential acquisitions [53] Question: Credit and provision outlook - Management indicated that the current provision level is appropriate for anticipated growth, with adjustments made based on macroeconomic forecasts [86]