Financial Data and Key Metrics Changes - The company's net income increased over 23% compared to the prior quarter, driven by higher net interest and noninterest income, good expense control, and lower provision expense [7] - Total loans increased by approximately $59 million or 0.4% from the prior quarter, with the largest increase in the C and I portfolio [8] - Total deposits increased slightly in the second quarter, with public deposits growing by $166 million, offsetting declines in commercial and retail deposits [10] - Net interest income was $163.6 million, up $3.1 million from the prior quarter, with a net interest margin (NIM) of 3.11%, an increase of three basis points [11] Business Line Data and Key Metrics Changes - The C and I portfolio saw a $125 million increase in dealer floorplan balances, while payoffs from completed construction projects offset some growth [9] - Retail deposits decreased by $23 million, and commercial deposits fell by $127 million due to normal operational fluctuations [10] - Noninterest income was $54 million in the quarter, with expectations for recurring noninterest income to be around $51 million per quarter [12] Market Data and Key Metrics Changes - The statewide seasonally adjusted unemployment rate was 2.8% in June, compared to the national rate of 4.1% [5] - Visitor arrivals were up 2.8% compared to last year, with year-to-date spending at $9 billion, an increase of 6.5% compared to 2024 [6] Company Strategy and Development Direction - The company plans to maintain its investment portfolio balance and has resumed reinvesting cash flows from the investment portfolio [7] - Capital priorities include organic growth, maintaining a stable dividend, and share repurchases, with $50 million remaining under the approved 2025 stock repurchase plan [7][26] Management Comments on Operating Environment and Future Outlook - Management noted that while there is uncertainty regarding tariffs affecting car dealers, tourism spending has remained strong, particularly from the U.S. mainland [24] - The company expects full-year loan growth to be in the low single digits, adjusting guidance due to the performance of construction loans [22] Other Important Information - The bank recorded a $4.5 million provision for credit losses in the second quarter, with classified assets increasing by $31.6 million [13][15] - The allowance for credit losses increased to $167.8 million, with coverage remaining flat at 1.17% of total loans and leases [15] Q&A Session Summary Question: What is the outlook for C and I growth and demand from CRE borrowers? - Most C and I growth came from dealer floor plans, with a current balance of $786 million, up $125 million from the previous quarter. There is uncertainty regarding future balances due to tariffs [20][21] Question: How are capital priorities evolving? - Capital priorities remain focused on organic growth, stable dividends, and share repurchases, with more repurchase authority expected to be utilized in the back half of the year [26] Question: What is the impact of the tax law change on the tax rate outlook? - The effective tax rate outlook for the rest of the year is 23.2%, slightly higher than the previous estimate of 23% [45] Question: What is the outlook for loan growth and competition in the market? - Loan growth is expected to be lower than initially anticipated, with competition primarily from institutional buyers for completed construction loans [52][73]

Financial Data and Key Metrics Changes - The company's net income increased over 23% compared to the prior quarter, driven by higher net interest and noninterest income, good expense control, and lower provision expense [6] - Total loans increased by approximately $59 million or 0.4% from the prior quarter, with the largest increase in the C and I portfolio [7] - Net interest income was $163.6 million, up $3.1 million from the prior quarter, with a net interest margin (NIM) of 3.11%, an increase of three basis points [11] Business Line Data and Key Metrics Changes - The C and I portfolio saw a significant increase of $125 million in dealer floorplan balances, while payoffs from completed construction projects offset some of this growth [7] - Total deposits increased slightly, with public deposits growing by $166 million, while commercial and retail deposits declined [10] - Noninterest income was $54 million in the quarter, with expectations for recurring noninterest income to be around $51 million per quarter [12] Market Data and Key Metrics Changes - The statewide seasonally adjusted unemployment rate was 2.8% in June, compared to the national rate of 4.1% [4] - Visitor arrivals were up 2.8% compared to last year, with year-to-date spending reaching $9 billion, an increase of 6.5% compared to 2024 [5] Company Strategy and Development Direction - The company plans to maintain its investment portfolio balance and has resumed reinvesting cash flows from the investment portfolio [6] - Capital priorities include organic growth, maintaining a stable dividend, and share repurchases, with a focus on deploying capital effectively in the back half of the year [26] Management's Comments on Operating Environment and Future Outlook - Management expects full-year loan growth to be in the low single digits, reflecting a cautious outlook due to uncertainties in the market [8] - The company is not observing broad signs of weakness in credit performance, with credit risk remaining low and stable [13] Other Important Information - The company recorded a $4.5 million provision for credit losses in the second quarter, with the allowance for credit losses increasing to $167.8 million [15] - The effective tax rate outlook for the rest of the year is projected at 23.2%, slightly higher than the previous estimate [47] Q&A Session Summary Question: How is the pipeline in terms of C and I? - Most of the C and I growth came from dealer floor plans, which have normalized, and there is uncertainty regarding future balances due to tariffs [20] Question: Have tariffs impacted tourism spending? - Tariffs have created uncertainty for car dealers but have not significantly impacted tourism spending, which has increased [24] Question: What are the capital priorities moving forward? - Capital priorities include organic growth, maintaining dividends, and share repurchases, with a focus on deploying repurchase authority in the back half of the year [26] Question: What is the outlook for M&A? - The company is open to considering M&A opportunities but currently has no specific targets [34] Question: What impacted loan yields in the second quarter? - The mix of loans, with higher margin loans being paid off and replaced by lower margin loans, affected loan yields [37] Question: What is the outlook for fee income in the third quarter? - Fee income is expected to be in the range of $51 million to $52 million for the third quarter [40] Question: What is driving the increase in residential mortgage non-performers? - The consumer at the lower end is getting stretched, leading to an increase in non-performing loans, but the company is not concerned about loss content [64] Question: How does the company view the increase in commercial criticized assets? - Most criticized assets are expected to cure themselves, and the company remains confident in its credit portfolio [71]

Financial Data and Key Metrics Changes - Net income increased by 36% from the prior quarter, reaching $42.7 million or $0.50 per share, with adjusted net income rising 39% sequentially to $44.5 million or $0.52 per share [4][7] - Return on assets improved to 1.08%, and return on tangible common equity rose to 12.8%, with an efficiency ratio of 55% excluding merger-related charges [8] - Tangible book value per share increased by 12% year over year to $17.19 [9][10] Business Line Data and Key Metrics Changes - Annualized loan growth reached 6.4%, with loan production of $854 million in the second quarter [4][16] - Net interest income rose by 7% from the prior quarter to $126.9 million, with net interest margin expanding by 10 basis points to 3.58% [9][11] - Noninterest income, excluding securities activity, increased by 10% year over year to $24.5 million, driven by treasury management services and wealth management [13] Market Data and Key Metrics Changes - Total deposits decreased by $77 million, reflecting seasonal slowness and a strategic focus on exiting high-rate deposit relationships [21] - Customer transaction accounts represented 47% of total deposits, indicating a strong relationship-focused approach [22] Company Strategy and Development Direction - The company successfully closed the Heartland Bancshares acquisition and is on track to close the Villages Bancorporation acquisition, which is expected to enhance profitability [5][10] - The company aims to maintain a strong capital position and continue organic growth while integrating recent acquisitions [24][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth outlook, citing strong economic conditions and demand for credit, with expectations for mid to high single-digit loan growth [34][36] - The competitive landscape is becoming increasingly competitive, particularly in commercial real estate, but the company remains optimistic about its growth trajectory [35][66] Other Important Information - The allowance for credit losses totaled $142.2 million, or 1.34% of total loans, with net charge-offs at $2.5 million, reflecting strong credit quality [18][19] - The company expects to exit the year with a core net interest margin of approximately 3.35%, with potential upside from acquisitions [12][84] Q&A Session Summary Question: Growth trends and competitive landscape in Florida - Management highlighted that growth is driven by recruiting top talent and strong economic conditions, with a robust pipeline for the upcoming quarters [32][34] Question: Outlook on funding costs and core deposit growth - Management indicated a focus on growing core operating accounts while managing deposit costs, with expectations for seasonal trends to turn favorable [39][41] Question: Loan pricing and spreads in commercial real estate - Management noted increased competition and some spread compression for high-quality assets, but credit quality remains stable [66][68] Question: Charge-off expectations and credit quality outlook - Management expressed confidence in stable credit quality moving forward, with expectations for mid-cycle charge-offs around 20 to 25 basis points [70][71] Question: Balance sheet optimization and margin expectations - Management discussed plans to optimize the balance sheet with the upcoming acquisitions, guiding for a core margin of 3.35% and potential increases from the acquisitions [83][84]

Financial Data and Key Metrics Changes - The company achieved record revenue of $226.3 million, a 5% increase year-over-year, with adjusted earnings per share of $0.74, a return on assets of 1.54%, and a return on tangible common equity of 20% [4][5][14] - The net interest margin increased to 4.05%, a 17 basis point increase from the previous quarter, while funding costs declined by 12 basis points [9][10][14] - Adjusted noninterest income was $67.8 million, an 11% increase from the previous quarter and a 10% increase year-over-year [5][17] Business Line Data and Key Metrics Changes - Loan growth was 2% on an annualized basis, with broad-based growth in most portfolios except for commercial real estate, which declined due to higher payoffs [5][15] - Noninterest income growth was driven by double-digit increases in mortgage, bank card, leasing, and foreign exchange income [5][11] - Adjusted noninterest expenses increased by 1% compared to the first quarter, with core expenses rising primarily due to higher incentive compensation and marketing expenses [6][17] Market Data and Key Metrics Changes - Average deposit balances increased by $114 million, primarily due to a seasonal influx in public funds and higher noninterest-bearing deposits [10][15] - The company maintained 21% of total balances in noninterest-bearing accounts, focusing on growing lower-cost deposit balances [10][15] - Adjusted uninsured deposits were $3.8 billion, representing 27% of total deposits, with a comfortable concentration level [16] Company Strategy and Development Direction - The company expects loan growth in the low to mid-single digits for the third quarter, with a strong loan pipeline and easing payoff pressures anticipated [21][22] - The Board of Directors approved a 4.2% increase in the common dividend to $0.25, reflecting the company's commitment to delivering shareholder value [7][20] - The company is actively engaged in the integration process following the announcement of the acquisition of Westfield Bank, expecting regulatory approval and closing within the year [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about asset quality, expecting net charge-offs to remain in the 20 to 25 basis points range for the remainder of the year [6][22] - The company anticipates continued strong performance in the second half of 2025, driven by solid loan production and effective expense management [21][23] - Management highlighted ongoing efficiency initiatives aimed at improving processes and reducing costs across the organization [36] Other Important Information - The company recorded a decline in net charge-offs to 21 basis points of total loans, with stable asset quality trends [6][12] - Tangible common equity increased to 8.4%, with tangible book value per share rising to $15.4, a 4% increase from the previous quarter [7][19] Q&A Session Summary Question: Outlook on funding costs and deposit rates - Management indicated that deposit costs are expected to decrease slightly, with a potential rate cut in September influencing future costs [28][29] Question: Impact of seasonal deposit outflows - Seasonal deposit outflows are expected to average around $100 million, primarily related to public funds [32] Question: Efficiency initiatives and cost-cutting focus - The company is reviewing all functions and departments to improve processes and drive operating leverage, with significant progress made [35][36] Question: Loan growth normalization excluding payoffs - Management anticipates long-term loan growth of 6% to 7%, with expectations for improved production in the upcoming quarters [38][39] Question: Asset quality concerns and nonaccruals - A quarter-over-quarter increase in nonperforming assets was attributed to downgrades of two commercial borrowers, with expectations for resolution by year-end [44][46] Question: Integration of Westfield Bank and asset sensitivity - The acquisition is expected to slightly improve asset sensitivity, bringing the company closer to a neutral position [47][50]

Financial Performance - Net interest margin grew approximately 20 basis points year-over-year to 353% [1] - Loan growth was 22% higher year-over-year, but core growth is closer to 4% quarter-over-quarter on an annualized basis when excluding the most recent acquisition [2][3][4] Market Dynamics & Strategy - The company closed one of its largest partnerships, contributing to the increase in net interest margin [2] - Strong loan growth and good deposit management also contributed to the increase in net interest margin [2] - Agriculture customers showed strength, although growth includes a recent acquisition in Minnesota [2][3] - Clients are navigating political, geopolitical, and tax uncertainties to grow their businesses [4] - Inventory builds ahead of tariffs boosted growth during the quarter [5] - Client survey suggests clients are twice as optimistic as they were at this time last year, which should bode well for the back half of the year [7][8] - The company is optimistic that farmers will have a better year, partly due to provisions in the "big beautiful bill" [9][10] Cryptocurrency - The industry is trying to figure out how stable coins will change money movement in the US and globally [11] - Crypto is expected to be here for a long time, and the company needs to find ways to help clients acquire and custody those assets [11][12] - The company views cryptocurrency as another asset class that clients want exposure to and aims to help them manage that money [13]

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 - Adjusted earnings per share increased by 8.2% quarter-over-quarter and 17.8% year-over-year [3] - Total loan balances rose by $10 million in Q2, with loan yields at 5.5%, up five basis points from Q1 [5][6] - Total deposits decreased by $60.9 million in Q2 but average total deposits increased by $35.4 million from the prior quarter [6] - Net interest income increased by $1.3 million or 2.4% from the prior quarter, with net interest margin rising to 3.51% from 3.44% [8][10] - Regulatory capital ratios remain above well-capitalized thresholds, with the TCE ratio increasing to 9.4% from 9.3% [10] Business Line Data and Key Metrics Changes - Commercial lending closed $248 million in new loan commitments, up from $183 million in Q1 and $218 million in Q2 2024 [18] - The commercial loan pipeline ended Q2 at $473 million, up from $460 million in the previous quarter [18] - Average interest rate for new commercial loans was 6.55%, down 28 basis points from the previous quarter [21] Market Data and Key Metrics Changes - Deposits decreased during the quarter but are up $100 million year-to-date compared to a decline of $82 million for the same period last year [21] - The deposit pipeline ended the quarter at $132 million, down from $165 million in Q1 [21] Company Strategy and Development Direction - The company is focused on improving net interest margin and controlling noninterest expense growth to drive higher profitability [3] - Strategic repositioning of the balance sheet included a pretax loss of $6.9 million on the sale of $91.6 million of securities [7] - The company remains open to considering new team lift-outs to enhance growth, particularly in construction lending [51][54] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued trends in profitability and risk management as the year progresses [3] - There is concern about the increase in nonperforming and substandard loans, but management believes it reflects a return to a more normalized credit environment [17] - The company expects loan growth to resume after the third quarter as construction loan payoff activity normalizes [20] Other Important Information - Nonaccrual loans totaled just under $9.9 million, representing 0.21% of total loans, an increase from 0.09% in Q1 [12] - The company repurchased 193,700 shares at a total cost of $4.5 million during Q2, with 797,000 shares remaining available for repurchase [11] Q&A Session Summary Question: Projected earn back on loss trade and near-term margin impact - The projected earn back is approximately three years, with an estimated pickup of about $2.3 million pretax [25][26] Question: Future restructuring activity - Future restructuring activity will depend on market conditions and capital needs, with ongoing efforts to improve overall performance [27][28] Question: Update on buyback and strategic use of capital - The stock price was advantageous in Q2, and future buyback activity will depend on stock price and other needs [29][30] Question: Credit quality and downgrades - The increase in criticized loans reflects identified problem credits rather than aggressive credit reviews [35][36] Question: Opportunities for loan growth and borrower sentiment - The largest opportunities for loan growth are in commercial real estate, with some pause among borrowers due to tariff uncertainties [38][39] Question: Spot rate on deposits and NIM for June - The spot rate was 1.92% as of June 30, with a NIM of 3.58% [45][46] Question: Update on new teams and production ramp-up - The expansion of the construction team is on track, with expectations to grow balances by about $75 million [51][52] Question: Competitive environment and pricing pressures - The overall volume in the market has decreased, leading to increased competition, but the pipeline remains strong [62][63]

Financial Data and Key Metrics Changes - Earnings for Q4 2025 were $1.39 diluted, unchanged from Q3 but up $0.20 or about 17% year over year [6] - For the full fiscal year 2025, earnings increased to $5.18 from $4.42 in fiscal 2024, driven by stronger interest income and a 7% growth in earning assets [7] - Tangible book value per share increased by $5.19 or just above 14% over the last twelve months to $41.87 [7] - Net interest margin for the quarter was 3.46%, up from 3.39% in the previous quarter [7][23] Business Line Data and Key Metrics Changes - Gross loan balances increased by $76 million or 7.6% annualized during the quarter, and by $250 million or 6.5% compared to the previous year [8] - Noninterest income increased by 9.2% compared to the linked quarter, driven by an additional card network bonus [25] - Noninterest expense was up 2.3% compared to the linked quarter, primarily due to consulting expenses related to a new contract [27] Market Data and Key Metrics Changes - Deposit balances increased by $20 million or about 2% annualized compared to the linked quarter [8] - The agricultural sector is facing rising input costs and expenses, with many farmers drawing more heavily on credit lines [20][18] Company Strategy and Development Direction - The company plans to change its reported quarterly net interest margin calculation to reduce volatility [7] - There is optimism about achieving mid-single-digit loan growth for the upcoming year despite potential prepayment activity [22] - The company is exploring M&A opportunities, with a solid capital base and proven financial performance [31] Management's Comments on Operating Environment and Future Outlook - Management noted that credit quality has deteriorated somewhat but remains relatively strong [9] - There is a cautious outlook regarding the agricultural sector, with many farmers facing difficult margins and potential operational wind-downs [18][20] - The company is focused on driving continued growth and sustaining long-term value creation for shareholders [29] Other Important Information - The company recorded a provision for credit losses of $2.5 million, up from $932,000 in the previous quarter [29] - The allowance for credit losses totaled $51.6 million, representing 1.26% of gross loans [28] Q&A Session Summary Question: Loan growth momentum - Loan growth was steady throughout the quarter, with larger credits indicating plans to pay off in the near term, potentially increasing prepayment activity [35] Question: Margin expectations - The company is neutral to rate movements currently but expects natural net interest margin expansion from loan origination activity [37] Question: Funding growth expectations - The company does not expect growth to be heavily weighted towards CDs this year, given a strong funding position [45] Question: M&A environment - There has been an increase in M&A discussions, with optimism about potential opportunities [48]

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]