Shares of Peoples Bancorp of North Carolina, Inc. (PEBK) have gained 9.9% since the company reported its earnings for the quarter ended Sept. 30, 2025. This compares with the S&P 500 Index’s 1% gain during the same period. Over the past month, the stock gained 3.2% compared with the S&P 500’s 2.1% rise.Peoples Bancorp’s Earnings SnapshotPeoples Bancorp reported net earnings of $3.7 million, or $0.70 per share ($0.67 diluted), for the third quarter of 2025, down 6.7% from $3.9 million, or $0.74 per share ($0 ...

Financial Data and Key Metrics Changes - For Q3 2025, the company reported net income of $8.9 million or $0.45 per diluted share, an increase from $6.9 million or $0.35 per share in Q3 2024, representing a 29% year-over-year growth [2][8] - Return on average assets increased to 1.27% from 1.11% a year ago, while return on average equity improved to 15.74% from 13.38% [3][8] - The efficiency ratio strengthened to 52.28%, reflecting disciplined expense management [3][21] - Net interest margin expanded to 3.14% compared to 3.03% in the same quarter last year [3][10] Business Line Data and Key Metrics Changes - Net interest income before provision for credit losses was $21.3 million, up $3.2 million or 17.5% from the prior year [3][13] - Loans held for investment grew to $2.1 billion, an increase of more than $199 million or 10.3% from $1.9 billion on September 30, 2024 [4][19] - Non-performing loans declined to 0.06% of total loans, down from 0.14% last year, indicating strong credit quality [4][18] Market Data and Key Metrics Changes - Total assets reached $2.8 billion as of September 30, 2025, representing a 10.5% year-over-year growth [3] - Total deposits ended the quarter at $2.5 billion, marking a robust 15.5% year-over-year increase [3][4] - Average deposits increased to $166 million or nearly 29% compared to the prior quarter and are up $380 million or 18% year over year [10] Company Strategy and Development Direction - The company focuses on relationship-based growth and has diversified its deposit-focused business verticals, which now account for 27% of total deposits [4][6] - The management emphasized the importance of Florida's strong economy as a key driver of success, with real GDP growth tracking around 2.4% in 2025 [23][24] - The company is optimistic about growth in the association banking vertical, with plans to potentially double the book of business in the next 18 months [38][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining momentum into 2026, citing solid fundamentals and a vibrant market [57] - The company anticipates improvements in net interest margin as excess cash is put to work in loan volume and securities portfolio [14][47] - Management noted that the current economic environment aligns well with the company's strategy, particularly in serving middle-market businesses and real estate development [24] Other Important Information - The company completed a $40 million subordinated debt issuance, with most proceeds used to repurchase approximately 2 million shares at a weighted average price of $17.19 per share [5][22] - The allowance for credit losses totaled $25 million at year-end, representing 1.17% of total loans, indicating a strong credit position [18] Q&A Session Summary Question: Can you quantify the yacht payoffs in the quarter? - The yacht payoffs were a little over $10 million and occurred in August, impacting loan yields and margin [28] Question: Is the loan production in September a sign of sustained momentum? - Management believes it is a sign of sustained momentum, with a strong pipeline for Q4 [29] Question: How is competition impacting loan pricing? - The market is very competitive, and pricing is based on relationships rather than transactions [30] Question: What is the outlook for the margin in Q4? - A margin of 3.27% is expected for Q4, with potential for further expansion [36] Question: What are the expectations for non-interest income? - Non-interest income is expected to remain stable, with activity in wire fees and swap fees anticipated to continue [37] Question: What growth opportunities exist in the association banking business? - There is significant potential for growth in the association banking vertical, with plans to scale operations [38][39]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported net income of $8,900,000 or $0.45 per diluted share, an increase from $6,900,000 or $0.35 per share in Q3 2024, representing a 29% year-over-year growth [2][10] - Return on average assets increased to 1.27% from 1.11% a year ago, while return on average equity improved from 13.38% to 15.74% [3][10] - The efficiency ratio strengthened to 52.28%, reflecting disciplined expense management [3][10] - Net interest margin expanded to 3.14% compared to 3.03% in the same quarter last year [3][10] - Total assets reached $2,800,000,000, marking a 10.5% year-over-year growth [4] - Total deposits increased by 15.5% year-over-year to $2,500,000,000 [4] Business Line Data and Key Metrics Changes - Loans held for investment grew to $2,100,000,000, an increase of 10.3% from $1,900,000,000 a year ago [5] - Non-performing loans declined to 0.06% of total loans, down from 0.14% last year [6] - The allowance for credit losses totaled $25,000,000, representing 1.17% of total loans [6] - The diversified deposit-focused business verticals accounted for $672,000,000 or 27% of total deposits [4] Market Data and Key Metrics Changes - Average deposits increased by $166,000,000 or nearly 29% compared to the prior quarter and are up $380,000,000 or 18% year-over-year [13] - Interest-bearing deposit costs remained stable at 3.29%, down 47 basis points from the same period last year [15] Company Strategy and Development Direction - The company focuses on relationship-based growth and has added new production personnel to support growth plans [5][7] - The strategy includes preparing for a lower rate environment, with expectations of benefiting from rate cuts in the short term [19][20] - The company is bullish on the association banking vertical, anticipating significant growth opportunities in this segment [52] Management's Comments on Operating Environment and Future Outlook - The management highlighted Florida's strong economy, with real GDP growth tracking around 2.4%, which supports the company's growth strategy [32] - The management expressed confidence in sustaining momentum into 2026, emphasizing the strength of the business model and market conditions [34][75] Other Important Information - The company completed a $40,000,000 subordinated debt issuance and repurchased approximately 2,000,000 shares at a weighted average price of $17.19 per share [6][11] - Tangible book value per share grew to $11.55, reflecting the impact of the share repurchase [6][13] Q&A Session Summary Question: Can you quantify the yacht payoffs in the quarter? - The yacht payoffs were a little over $10,000,000 and occurred in August, impacting loan yields and margin [38] Question: Is the loan production in September a sign of sustained momentum? - Management indicated that September was a record-setting month and the pipeline looks strong for Q4 [40] Question: How is competition impacting loan pricing? - The market is competitive, and pricing is based on relationships rather than transactions [41] Question: What is the outlook for the margin given additional costs from subordinated debt? - The margin is expected to remain around 3.27% for Q4, with potential for improvement as loan growth resumes [49] Question: What are the expectations for non-interest income and SBA activity? - Non-interest income is expected to remain stable, with some impact from the government shutdown on SBA activity [50] Question: What growth opportunities exist in the condo association banking business? - The company is optimistic about this segment, with plans to potentially double the book of business in the next 18 months [53]

Financial Data and Key Metrics Changes - The company reported net earnings of $6.8 million and earnings per share of $0.28 for the third quarter, compared to core income of $2 million and $0.08 per share in the same quarter of 2024 [4] - Return on Assets (ROA) improved to 70 basis points, and Return on Tangible Common Equity (ROTCE) improved to 9.45% [4] - Core ROA adjusted for certain non-permanent items is closer to 90 basis points, aligning with the target of 1% ROA [5] - Net interest margin for the third quarter was 3.18%, up from 2.86% in the previous quarter and 2.97% year-over-year [19] Business Line Data and Key Metrics Changes - The mortgage division's production increased from approximately $20 million per month to $100-$120 million per month over the past few years, with pre-tax earnings of about $1.9 million in the current quarter [10] - The Mortgage Warehouse division showed average balances of about $210 million, ending balances of about $327 million, and pre-tax earnings of about $1.6 million [11] - Panacea's loan balances increased to $530 million, with deposits growing to about $132 million, a 50% increase year-over-year [12] Market Data and Key Metrics Changes - Non-interest-bearing checking accounts grew by about 16% compared to a year ago, improving the deposit mix and reducing the cost of deposits by almost 20% [7] - Average earning assets increased by 10% annualized in the third quarter, positioning the company to replace earning assets sold a year ago [18] Company Strategy and Development Direction - The company is focused on increasing the proportion of non-interest-bearing deposits to around 20% of total deposits, which is currently about 20% in the core bank [34] - The strategy emphasizes driving low-cost deposits and maintaining competitive rates for checking accounts to support growth and profitability [42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a 1% ROA goal, citing substantial tailwinds and improved profitability ratios [23] - The company is optimistic about the potential for loan growth in the fourth quarter and into 2026, with expectations of 6%-8% growth in the core bank [31] Other Important Information - The company noted limited impacts on net interest margin from the consumer program and expects continued improvement in margins due to new loans repricing [20] - The company has a strong focus on managing operating expenses, with core non-interest expense slightly higher than the year-ago quarter [22] Q&A Session Summary Question: Thoughts on overall loan growth for the fourth quarter and into 2026 - Management indicated potential for more runoff in the Mortgage Warehouse but expects to sustain levels around $210 million, with Panacea loans potentially reaching $150 million in annual production [29][31] Question: Timing for reaching a 3.30% margin - Management anticipates reaching a 3.30% margin by the first quarter of next year, focusing on increasing non-interest-bearing deposits [32][34] Question: Impact of interest rates on deposit costs - Management noted that while competition may drive rates down, the company's growth in checking accounts allows for competitive positioning without sacrificing margins [42] Question: Evidence of sticky customers from the digital banking platform - Management confirmed that digital customers are stickier than expected, with over 90% having multiple accounts or referring others [44][49] Question: Resolution of asset quality issues - Management expressed optimism about resolving certain loans in the next few quarters, particularly a C&I property that could improve margins [50][52]

Financial Data and Key Metrics Changes - The company reported net earnings of $6.8 million, or $0.28 per share, compared to core income of $2 million and $0.08 per share in Q3 2024 [5] - Return on Assets (ROA) improved to 70 basis points, and Return on Tangible Common Equity (ROTCE) improved to 9.45% [5] - Core ROA adjusted for certain non-permanent items is closer to 90 basis points, aligning with the target of 1% ROA [6] - Net interest margin increased to 3.18%, up from 2.86% in the previous quarter and 2.97% year-over-year [21] Business Line Data and Key Metrics Changes - The mortgage division's production increased from $20 million per month to $100 million - $120 million per month over the past few years, with a 10% annual production increase in Q3 [11] - Mortgage warehouse average balances grew to $210 million, with ending balances at $327 million, and pretax earnings of $1.6 million [12] - Panacea's loan balances increased to $530 million, with deposits growing 50% year-over-year to $132 million [13] Market Data and Key Metrics Changes - Non-interest bearing checking accounts grew by 16% year-over-year, improving the deposit mix and reducing the cost of deposits by almost 20% [7] - Average earning assets increased by 10% annualized in Q3, positioning the company to replace earning assets sold a year ago [20] Company Strategy and Development Direction - The company is focused on increasing the proportion of non-interest bearing deposits to 20% of total deposits, currently at about 20% in the core bank [36] - The strategy emphasizes core funding through checking accounts rather than brokered CDs or institutional borrowings, aiming for sustainable growth and profitability [46] - The company is leveraging technology and customer service to enhance deposit growth and maintain competitive margins [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a 1% ROA, citing strong operational leverage and a focus on core relationships [6][26] - The company anticipates continued growth in profitability with minimal operating expense increases, despite inflationary pressures [24] - Management noted that the current quarter's results reflect a positive trend, with expectations for further improvements in the coming quarters [26] Other Important Information - The company experienced limited impacts on net interest margin due to interest reversals on loans moving to non-accrual status [22] - The provision for the quarter was a small release, driven by growth in the loan portfolio and low core charge-off activity [23] Q&A Session Summary Question: Thoughts on overall loan growth for Q4 and 2026 - Management indicated potential runoff in mortgage warehouse but expects to sustain levels, with Panacea loans projected to reach $150 million in annual production [30][32] Question: Timing for reaching a 3.3% margin - Management expects to be closer to a 3.3% margin by the first quarter of next year, focusing on increasing non-interest bearing deposits [35][36] Question: Impact of interest rates on deposit costs - Management noted that competition is likely to use falling rates to drive margins, but the company's growth in checking accounts allows for competitive positioning [45] Question: Stickiness of digital customers - Management confirmed that digital customers are stickier than expected, with high retention rates and strong deposit relationships [47][51] Question: Resolution of asset quality issues - Management indicated that one loan could be resolved in the current quarter, while others may take longer, with expectations for improved debt coverage [56][57] Question: Future expense trends - Management anticipates continued improvement in expense management over the next few quarters [59]

Financial Data and Key Metrics Changes - The company reported a net income of $25.7 million or $0.50 per diluted share for Q3 2025, a slight decrease from $26.4 million or $0.51 per diluted share in Q2 2025 [7] - Annualized return on assets (ROA) was 0.97% and return on average tangible common equity (ROATCE) was 11.45% [7] - Net interest income increased to $100.6 million from $98.3 million in the previous quarter, with a net interest margin of 4.2% compared to 4.18% in Q2 2025 [7][8] - Year-over-year tangible book value per share increased by 9.3% from $19.28 to $21.08 [11] Business Line Data and Key Metrics Changes - Non-interest income decreased to $5 million in Q3 2025 from $5.8 million in Q2 2025, primarily due to write-downs on foreclosed assets [9] - Non-interest expenses rose to $73.1 million from $70 million in the previous quarter, driven by increased salaries and benefits [10] Market Data and Key Metrics Changes - The company experienced a $50 million increase in payoffs compared to the previous quarter, with 44% of payoffs related to the sale of collateral and 25% due to refinancing elsewhere [19] - Loan originations were up 62% year-to-date compared to the same period last year, with a total of $500 million originated in the last quarter [21] Company Strategy and Development Direction - The company aims to grow by focusing on quality assets, protecting margins, and enhancing full client relationships [6] - The management expressed confidence in their ability to defend and potentially improve their net interest margin by adhering to their core relationship banking model [8][12] Management's Comments on Operating Environment and Future Outlook - Management noted that credit quality remains stable despite some charge-offs, with a comfortable reserve level based on their portfolio [4] - The company is positioned to take advantage of market disruptions and is focused on maintaining a strong balance sheet to support growth [12] Other Important Information - The company repurchased shares and paid down $30 million of subordinated debt after the quarter ended [5] - Total risk-based capital was reported at 16.33%, up from 15.98% in the previous quarter [11] Q&A Session Summary Question: What is driving the payoffs and paydowns? - Management indicated that payoffs were $50 million higher than the previous quarter, with a significant portion related to collateral sales and refinancing elsewhere [19] Question: What are the current credit concerns? - Management stated that they conduct stress testing and monitor portfolios closely, emphasizing a careful approach to credit management [24][25] Question: What are the drivers behind deposit growth? - 51% of new deposits were from new customers, reflecting increased brand awareness and market share gains [28] Question: What are the expectations for seasonal deposit strength in Q4? - Management acknowledged historical seasonal strength but noted it is difficult to predict exact amounts [36][38] Question: What makes the current expense level an outlier? - The increase in expenses was attributed to severance payments and elevated medical insurance costs, with expectations for a return to previous levels in Q4 [40][42] Question: How does the company plan to manage net interest margin? - Management plans to focus on lowering deposit costs and is optimistic about defending the current margin level [46][48] Question: What are the expectations for loan growth and M&A activity? - Management expressed confidence in loan growth in the coming quarters and indicated ongoing discussions regarding potential M&A opportunities while being cautious about balance sheet protection [60][61]

Financial Data and Key Metrics Changes - Hilltop reported net income of approximately $46 million or $0.74 per diluted share for Q3 2025, with a return on average assets of 1.2% and return on average equity of 8.35% [4] - Net interest income increased by $7.4 million or 7% year-over-year, totaling $112 million, driven by improved deposit costs and growth in higher yielding commercial loans [14] - The allowance for credit losses declined by $2.8 million to $95 million, resulting in a coverage ratio of 1.16% [12] Business Line Data and Key Metrics Changes - PlainsCapital Bank generated $55 million of pre-tax income on $12.6 billion of average assets, with a return on average assets of 1.34% [4] - PrimeLending reported a pre-tax loss of $7 million due to subdued mortgage origination volumes, with existing home sales at their lowest level in over 30 years [6] - Hilltop Securities Inc. produced pre-tax income of $26.5 million on net revenues of $144.5 million, achieving a pre-tax margin of 18% [7] Market Data and Key Metrics Changes - Total core deposits at PlainsCapital increased by 6% on a linked quarter basis, attributed to seasonal cash inflows from large balance customers [5] - Average total deposits remained stable at approximately $10.5 billion year-over-year, with a focus on growing interest-bearing products [16] - Mortgage revenues declined by $3.4 million year-over-year, reflecting challenges in the mortgage banking sector due to higher interest rates and home prices [17][18] Company Strategy and Development Direction - The company aims to maintain strong capital levels with a common equity tier one capital ratio of 20% and plans to continue share repurchases to signal confidence in its stock [9][31] - Hilltop Securities is investing in core areas of expertise and leveraging its national brand to enhance client service [9] - The leadership team is focused on optimizing costs and productivity at PrimeLending while growing the client-facing sales team [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the bank's ability to manage competition and maintain a conservative credit culture despite elevated market competition [5][22] - The outlook for 2025 reflects ongoing uncertainties in the market regarding interest rates and inflation, with a focus on producing quality outcomes for clients [24] - Management does not anticipate significant systemic risk across the portfolio but remains vigilant in assessing potential credit risks [13] Other Important Information - The company returned $11 million to stockholders through dividends and repurchased $55 million in shares during the quarter [9] - A leadership transition is occurring at PlainsCapital Bank, with the promotion of Brent Randall to Chief Credit Officer [10] Q&A Session Summary Question: NII guidance and near-term outlook - Management explained that the NII guidance was not increased due to expected rate cuts and potential asset contraction, emphasizing the balance sheet's asset sensitivity [26][28] Question: Stock buybacks and M&A outlook - Management confirmed a consistent approach to share repurchases given excess capital and discussed opportunities for growth through M&A in the Texas market [30][31] Question: Auto portfolio exposure - Management addressed concerns about the auto portfolio, noting a reduction in commitments and ongoing workout efforts for non-accrual clients [32][33] Question: Broker-dealer fee income - Management highlighted strong performance in public finance and structured finance, while acknowledging that some fee growth may not be sustainable [42][43] Question: Effects of government shutdown - Management indicated no primary effects from the government shutdown on the broker-dealer, but noted potential processing delays in the mortgage space [51][52]

Financial Data and Key Metrics Changes - Hilltop reported net income of approximately $46 million or $0.74 per diluted share for Q3 2025, with a return on average assets of 1.2% and return on average equity of 8.35% [4][13] - Net interest income increased by $7.4 million or 7% year-over-year, driven by improving deposit costs and growth in higher yielding commercial loans [16][19] - The allowance for credit losses declined by $2.8 million to $95 million, resulting in a coverage ratio of 1.16% [13][14] Business Line Data and Key Metrics Changes - PlainsCapital Bank generated $55 million of pre-tax income on $12.6 billion of average assets, with a return on average assets of 1.34% [4][5] - PrimeLending reported a pre-tax loss of $7 million due to subdued mortgage origination volumes and pressure on margins [6][8] - Hilltop Securities Inc. generated pre-tax income of $26.5 million on net revenues of $144.5 million, achieving a pre-tax margin of 18% [8][10] Market Data and Key Metrics Changes - Total core deposits at PlainsCapital increased by 6% on a linked quarter basis, attributed to seasonal cash inflows [5] - Existing home sales across the country reached their lowest level in over 30 years, impacting PrimeLending's performance [7][20] - Hilltop Securities experienced solid growth in public finance, structured finance, and wealth management, with net revenues increasing significantly year-over-year [9][21] Company Strategy and Development Direction - The company aims to focus on reducing fixed expenses and recruiting talented mortgage originators to restore profitability at PrimeLending [8][20] - Hilltop Securities continues to invest in core areas of expertise and leverage its national brand to serve clients effectively [10][21] - The company is exploring opportunities for growth through potential M&A in the Texas market, which has seen increased interest from out-of-market entrants [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong capital levels with a common equity tier one capital ratio of 20% and tangible book value per share increasing to $31.23 [10] - The outlook for 2025 reflects current assessments of the economy and market conditions, with expectations for continued challenges in the mortgage market [25] - Management remains vigilant regarding credit risks and is focused on early detection and aggressive workout strategies [24] Other Important Information - The company returned $11 million to stockholders through dividends and repurchased $55 million in shares during the quarter [10] - A leadership transition is occurring at PlainsCapital Bank, with the promotion of Brent Randall to Chief Credit Officer [11] Q&A Session Summary Question: NII guidance and margin expectations - Management explained that the NII guidance was not increased due to expected rate cuts and potential asset contraction, emphasizing the balance sheet's asset sensitivity [27][28] Question: Stock buyback strategy and M&A outlook - Management confirmed a consistent approach to share repurchases given the current stock price and excess capital, while also exploring M&A opportunities in Texas [30][31] Question: Auto portfolio exposure - Management acknowledged subprime exposure in the auto portfolio but stated that they are closely monitoring and managing the situation [32][38] Question: Broker-dealer fee income and future expectations - Management highlighted strong performance across all broker-dealer business lines in Q3 but anticipated a reversion to lower pre-tax margins in the future [40][41]

Financial Data and Key Metrics Changes - The company reported a net income of $25.7 million or $0.50 per diluted share for Q3 2025, compared to $26.4 million or $0.51 per share in Q2 2025, reflecting an annualized ROAA of 0.97% and an annualized ROATCE of 11.45% [9] - Net interest income increased to $100.6 million from $98.3 million in the previous quarter, with a net interest margin of 4.2% compared to 4.18% in Q2 2025 [10] - The total risk-based capital ratio improved to 16.33% at the end of Q3 2025 from 15.98% at the end of Q2 2025, and tangible book value per share increased by 9.3% year-over-year [13] Business Line Data and Key Metrics Changes - The provision for loan losses was $305,000 in Q3 2025, with net charge-offs totaling $3.3 million, primarily from previously identified credits [11] - Non-interest income decreased to $5 million from $5.8 million in the previous quarter, mainly due to write-downs on foreclosed assets [12] - Non-interest expenses rose to $73.1 million from $70 million in Q2 2025, driven by increased salaries and benefits, including severance expenses related to branch closures [12] Market Data and Key Metrics Changes - The company experienced strong deposit growth, with 51% of new deposits coming from new customers, reflecting improved brand awareness and customer satisfaction [32] - The company reported a significant increase in loan originations, up 62% year-to-date compared to the same period last year, although Q3 originations were lower than Q2 [22] Company Strategy and Development Direction - The company aims to enhance shareholder value through disciplined capital deployment, focusing on building quality assets and maintaining strong credit quality [8] - The management emphasized the importance of maintaining a competitive edge in a dynamic market, particularly in Texas, where M&A activity is increasing [13][67] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of credit trends and the overall market, despite some concerns in the industry [7][29] - The company plans to continue optimizing expenses and managing its balance sheet effectively to support growth and maintain financial flexibility [45] Other Important Information - The company repurchased shares and paid down $30 million of subordinated debt after the quarter-end, reinforcing its capital position [8] - The management noted that Q3 expenses were considered an outlier and expected a return to a more typical expense level in Q4 2025 [12][44] Q&A Session Summary Question: What is driving the payoffs and paydowns, and what is the growth outlook? - Payoffs in the last quarter were about $50 million more than the previous quarter, with 44% related to collateral sales and 25% due to refinancing elsewhere. The company remains optimistic about future growth due to a healthy pipeline [20][22] Question: What are the current credit concerns and management's approach? - Management stated that they conduct stress testing and monitor portfolios closely, emphasizing a shift towards more stable C&I credits while maintaining a strong real estate loan portfolio [26][28] Question: What are the drivers behind the strong deposit growth? - The company reported that 51% of new deposits were from new customers, reflecting successful market share gains and improved customer satisfaction [31][32] Question: What are the expectations for seasonal deposit strength in Q4? - The company noted historical seasonal strength in government banking deposits, but it is difficult to predict exact amounts for the upcoming quarter [39][41] Question: What is the outlook for loan growth and M&A activity? - Management indicated that loan growth is expected to manifest in the second half of the year, with ongoing conversations about potential M&A opportunities while being cautious about maintaining a strong balance sheet [65][67]

Financial Performance - The company reported adjusted net income of $72.6 million and adjusted earnings per share of $0.76 for Q3 2025, resulting in an adjusted return on assets of 1.55% and a return on tangible common equity of 19.3% [3][6] - Tangible book value per share increased to $16.19, a rise of 5% from the previous quarter and 14% year-over-year, while tangible common equity ratio rose by 47 basis points to 8.87% [1][12] - The net interest margin remained strong at 4.02%, despite a slight decline from the previous quarter [4][8] Revenue and Income Streams - Total net revenue reached record levels, with adjusted non-interest income accounting for 31% of total net revenue for the quarter [2][3] - Fee income for the quarter was a record $73.6 million, driven by leasing and foreign exchange businesses, as well as higher syndication fees [10][12] Loan and Deposit Activity - Loan balances decreased by $72 million during the quarter, primarily due to lower production in specialty lending areas and increased construction originations [9][32] - Average deposit balances increased by $157 million, driven by higher broker deposits and money market accounts, despite a seasonal decline in public funds [4][9] Expense Management - Total non-interest expenses remained flat compared to the previous quarter, excluding performance-related incentives [2][5] - The company has successfully reduced its full-time equivalents by approximately 200 or 9% over the past two years as part of workforce efficiency efforts [2][49] Outlook and Future Expectations - The company anticipates mid-single-digit loan growth for Q4 2025, with expectations for strong deposit growth driven by core deposit balances and seasonal public fund inflows [14][15] - The net interest margin is expected to remain in the range of 3.92% to 3.97% for the next quarter, assuming a 25 basis point rate cut in both October and December [15][25] - The company is preparing for the integration of pending acquisitions, which are expected to enhance operational efficiencies and revenue growth [16][51]