Financial Data and Key Metrics Changes - The operating return on assets was 1.37% for the third quarter, with a return on equity of 12.1% and a return on tangible common equity (ROTCE) of 17.6%, showing continued improvement over linked and prior year quarters [3] - Net income for the third quarter was $54.5 million, or $1.03 per diluted common share, with operating earnings per share at $1.05, an increase of $0.17 per share compared to the prior quarter [9] - Revenues grew approximately 9% from the prior quarter and 26% from the third quarter of the prior year, driven by improvements in net interest income [9][11] Business Line Data and Key Metrics Changes - Total loans increased by $1.6 billion for the year, including acquired loans from Evans Bancorp, with annualized loan growth in 2025 being approximately 1% higher from December 2024 [9][10] - Total deposits reached $13.7 billion, up $2.1 billion from December 2024, with growth in checking and money market accounts [10] - Non-interest income represented 28% of total revenues in the third quarter, reflecting the strength of the diversified revenue base [14] Market Data and Key Metrics Changes - The company experienced solid growth in deposits in the Western region of New York post-merger with Evans Bancorp, retaining key lending relationships despite a net contractual runoff of approximately $30 million [6] - The new branch in Greater Rochester opened in April and is off to a promising start, with plans for further expansion in the region [6][8] Company Strategy and Development Direction - The company plans to open four to six new branches annually to improve market concentration, particularly in Rochester [28] - The focus remains on organic growth and evaluating partnerships with like-minded community banks, with a renewed share repurchase authorization through the end of 2027 [5][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the capital position and growth opportunities across markets, despite potential challenges from expected changes to Fed funds rates impacting future margin improvements [4][15] - The company anticipates low to mid-single-digit loan growth rates in the upcoming quarters, supported by a strong pipeline [20] Other Important Information - The company announced an 8.8% improvement to its dividend to shareholders, marking the 13th consecutive year of increases [5] - Total operating expenses, excluding acquisition expenses, were $110 million for the quarter, reflecting a 4.4% increase from the prior quarter [14] Q&A Session Summary Question: Can you discuss cost savings and expected expenses? - Management indicated that cost savings from the Evans merger are essentially achieved, with a run rate of $110 million expected moving forward, alongside typical expense increases of 3.5% to 4.5% [18] Question: What are the expectations for loan growth? - Management expects low to mid-single-digit growth rates in the upcoming quarters, with a strong pipeline and a comfortable loan-to-deposit ratio of 85% [20][21] Question: What is the outlook for fee income growth? - The insurance business is expected to grow at a rate of high mid-single digits, with seasonality affecting the fourth quarter [63][67] Question: Are there plans for additional M&A? - The company is open to opportunistic M&A to fill in its franchise, focusing on smaller community banks [33] Question: What is the outlook for net interest margin? - Management anticipates potential margin pressure in the fourth quarter but sees opportunities for improvement in 2026 depending on the yield curve [34][76]

Financial Data and Key Metrics Changes - The company reported net income of $106 million, or $1.54 per diluted share, in the third quarter, with a return on assets at 1.56% and return on tangible common equity at 14.6% [9] - The efficiency ratio improved to 49.19% from 51.63% in the previous quarter, driven by a strong 17.8% annualized revenue growth [9][12] - Tangible book value per share grew to $42.90, reflecting a strong 15.2% annualized growth [9] Business Line Data and Key Metrics Changes - Loan growth was 4% annualized, primarily driven by a mix of commercial and industrial (C&I) and commercial real estate (CRE) [5][13] - Non-interest income increased by $7.4 million, mainly from better equipment finance fees and a non-recurring gain on securities [11] - The company repurchased approximately $8.5 million of common stock during the quarter [10] Market Data and Key Metrics Changes - Deposits grew at a 5% annualized rate, with non-interest-bearing deposits remaining over 30% [5][13] - The loan portfolio production topped $2 billion, the highest level since 2022 [6] - The company maintained a strong capital position, with common equity tier one at 13.2% and tangible common equity at 11.3% [5] Company Strategy and Development Direction - The company remains focused on growing its core deposit base and tangible book value per share, with an emphasis on revenue growth and positive operating leverage [4][8] - The management expressed optimism about capitalizing on growth opportunities and disruptions in the Southeastern markets [6][8] - The company plans to continue its share repurchase program, with a new authorization of $200 million [10] Management's Comments on Operating Environment and Future Outlook - Management is optimistic about loan demand and growth potential, particularly looking towards the end of 2025 and into 2026 [18][42] - The company anticipates some margin compression in the coming quarters due to rising deposit costs [11][34] - Asset quality remains stable, with low levels of net charge-offs and non-performing assets [12] Other Important Information - The company’s efficiency ratio is expected to return above 50% in the fourth quarter [12] - The provision for credit losses was $22.6 million, with over half related to reserves for unfunded commitments, indicating positive future loan growth potential [12] Q&A Session Summary Question: How is loan demand trending and what is the outlook? - Management expressed optimism about loan demand across all verticals, with steady payoffs indicating a healthy market [18] Question: How is competition affecting the loan landscape? - Competition is primarily on pricing, but management believes disruption in the market will provide additional volume opportunities [19] Question: What are the trends in equipment finance? - Demand in equipment finance is picking up, with strong fee income growth expected to continue [20][24] Question: What is the outlook for expenses and efficiency ratio? - A 5-5.5% increase in expenses is anticipated for next year, with a focus on maintaining a strong efficiency ratio [30][31] Question: What is the expectation for margin compression? - Management expects some margin compression due to deposit costs catching up with loan rates, but overall growth in net interest income is anticipated [34][36] Question: Is there potential for M&A activity? - The company is prioritizing organic growth opportunities over M&A at this time [45] Question: What is the outlook for mortgage activity? - Management is optimistic about increased mortgage activity if interest rates decline, with significant purchase volume currently [52]

Financial Performance - The company's net income for 3Q25 was $106.0 million, resulting in diluted earnings per share of $1.54[22] - The company's return on average assets (ROA) was 1.56% for 3Q25[22] - The company's return on average tangible common equity (ROTCE) was 14.57% for 3Q25[22] - The company's net interest margin (NIM) improved by 3 basis points to 3.80% in 3Q25[22] - The company's efficiency ratio improved to 49.19% in 3Q25[22] Balance Sheet and Capital - The company's tangible book value (TBV) grew by $1.58 per share to $42.90 at the end of 3Q25, representing an annualized growth rate of 15.2%[22] - The company's CET1 ratio was 13.2% at the end of 3Q25[13] - Noninterest-bearing deposits remained strong, representing 30.4% of total deposits as of September 30, 2025[22] Loan Portfolio and Credit Quality - The company's loan portfolio totaled $21.3 billion in 3Q25[56] - The company's allowance for credit losses (ACL) on loans was 1.62% of total loans in 3Q25[13] - The company's net charge-offs were stable at 0.14% annualized in 3Q25[22] Market Position and Growth - The company's Southeast markets are projected to grow approximately 1.7x the national average over the next five years[13]

Core Insights - Endeavor Bancorp reported a net income of $1.73 million, or $0.46 per diluted share, for Q3 2025, showing significant growth compared to $1.07 million, or $0.28 per diluted share, in Q2 2025 and $924,000, or $0.24 per diluted share, in Q3 2024 [1][2][19] Financial Performance - The company achieved a core pre-tax earnings of $2.86 million, a 25.4% increase from $2.28 million in the previous quarter and a 47.9% increase from $1.93 million in Q3 2024 [2][19] - Total interest income was $12.2 million, up $546,000 from the previous quarter, while net interest income rose to $7.7 million, reflecting a 4.0% increase from Q2 2025 and a 29.8% increase from Q3 2024 [3][19] - Non-interest income reached $401,000, marking a 45.6% increase from the previous quarter and an 84.8% increase from $217,000 in Q3 2024 [5][19] Asset Quality and Management - The provision for credit losses was $396,000, down from $746,000 in Q2 2025 and $609,000 in Q3 2024, indicating improved credit risk management [2][19] - Total loans outstanding increased by $6.7 million, or 1.1%, to $632.6 million, and non-performing loans decreased to 0.21% of the total loan portfolio [9][10][19] Balance Sheet Strength - Total assets grew by $13.3 million, or 1.8%, to $760.2 million, and total deposits increased by $10.9 million, or 1.6%, to $678.3 million [8][10][19] - Shareholders' equity rose to $51.0 million, with tangible book value per share increasing to $14.21 [12][19] Capital Ratios - The Tier 1 leverage ratio was 10.15%, while the Tier 1 risk-based capital ratio was 10.32%, both well above regulatory minimums [13][21]

Core Insights - Independent Bank Corporation reported a net income of $17.5 million, or $0.84 per diluted share, for Q3 2025, an increase from $13.8 million, or $0.65 per diluted share, in the same period last year [1][2]. Financial Performance - Net interest income for Q3 2025 was $45.4 million, up $3.5 million, or 8.4%, year-over-year, and $0.7 million, or 1.7%, from Q2 2025 [3]. - The net interest margin (NIM) was 3.54% in Q3 2025, compared to 3.37% in Q3 2024 and 3.58% in Q2 2025 [3][29]. - Non-interest income totaled $11.9 million in Q3 2025, an increase from $9.5 million in the prior year, primarily due to variances in mortgage banking revenues [4][29]. - Non-interest expenses were $34.1 million in Q3 2025, compared to $32.6 million in the same period last year [8][29]. Asset Quality - Non-performing loans increased to $20.4 million, or 0.48% of total portfolio loans, from $6.0 million, or 0.15%, in the previous year [9]. - The allowance for credit losses stood at 1.49% of total loans, with net charge-offs at historically low levels of four basis points through the first three quarters of 2025 [10][11]. Balance Sheet and Capital - Total assets were $5.49 billion at September 30, 2025, an increase of $155 million from December 31, 2024 [12]. - Total deposits reached $4.86 billion, up $205.1 million from the end of 2024, driven by increases in savings and interest-bearing checking accounts [12]. - Shareholders' equity was $490.7 million, or 8.93% of total assets, compared to $454.7 million, or 8.52%, at the end of 2024 [14]. Shareholder Returns - The company paid a dividend of $0.26 per share on August 15, 2025 [4]. - A share repurchase plan authorized the purchase of up to 1,100,000 shares, with 266,008 shares repurchased for $7.77 million during the nine months ended September 30, 2025 [16].

Core Points - The company reported a net income of $1.68 million for the quarter ended September 30, 2025, which is a 3% increase from the previous quarter but a 12% decrease from the same quarter last year [3][4][41] - The net interest margin improved to 3.00%, up six basis points from the previous quarter and up 16 basis points from the same quarter last year [3][6][41] - Total loans held for investment decreased slightly to $1.04 billion from $1.05 billion at the end of the previous quarter [3][8] - Total deposits were $874.8 million, down 2% from the previous quarter [3][12] Financial Performance - The company’s return on average assets was 0.55%, compared to 0.53% in the previous quarter and 0.61% in the same quarter last year [5][41] - Return on average stockholders' equity was 5.17%, up from 5.01% in the previous quarter but down from 5.78% in the same quarter last year [5][41] - Net interest income increased by $314,000, or 4%, to $8.93 million compared to the same quarter last year, driven by a higher net interest margin [6][41] Loan and Deposit Trends - Interest income on loans receivable increased by $108,000, or 1%, to $13.13 million, primarily due to a higher average loan yield [7][41] - The average yield on loans receivable increased by eight basis points to 5.05% [7][41] - Total loans originated for investment were $29.6 million, a 2% increase from the same quarter last year [8][41] Non-Interest Income and Expenses - Non-interest income decreased by $86,000, or 10%, to $813,000, primarily due to a decline in other non-interest income [20][41] - Non-interest expense increased by $111,000, or 1%, to $7.63 million, mainly due to higher salaries and employee benefits [21][41] - The efficiency ratio improved to 78.35% from 79.08% in the same quarter last year, reflecting higher net interest income [22][41] Tax and Shareholder Returns - The provision for income taxes was $1.05 million, up 34% from the same quarter last year [23][41] - The effective tax rate increased to 38.5% compared to 29.3% in the same quarter last year [24][41] - The company repurchased 66,707 shares at an average cost of $15.75 per share during the quarter [24][41]

Financial Data and Key Metrics Changes - Fully diluted earnings per share were $1.2, a 29% increase year-over-year and a 13% increase from the previous quarter [4] - Net interest margin improved for the sixth consecutive quarter, up seven basis points to 2.46% [5] - Return on common equity improved to 13.6% for the quarter [5] - Net income for the quarter was $53.3 million, an increase of $5.7 million compared to the linked quarter [20] Business Line Data and Key Metrics Changes - Average deposits increased by 7% annualized, while end-of-period loans increased modestly [5] - Consumer loans represented over half of total loans at 57%, amounting to $7.9 billion [12] - Commercial loans totaled $6.1 billion, accounting for 43% of total loans [13] Market Data and Key Metrics Changes - Bank of Hawaii advanced its number one deposit market share position in Hawaii by 40 basis points as of June 30, 2025 [6] - The bank's market share has grown by 600 basis points since 2005, outperforming competitors in Hawaii [6] Company Strategy and Development Direction - The company aims to leverage its dominant market position and brand strength to build wealth market share, particularly in the affluent segment [9][10] - A partnership with Saterra is expected to modernize the broker-dealer platform, enhancing client experience and investment products [10] - The bank is focused on improving coordination between commercial and wealth teams to drive cross-marketing opportunities [11] Management's Comments on Operating Environment and Future Outlook - Management anticipates continued expansion of net interest margin and expects to achieve $250 million by year-end [35] - The outlook for loan growth remains in the low single digits, with expectations for improvement in the fourth quarter [38] - Management is optimistic about the potential for further NIM improvement as Fed funds rates decrease [36] Other Important Information - Non-interest income increased to $46 million during the quarter, driven by higher customer derivative activity and elevated loan fees [25] - The company recorded a provision for credit losses of $2.5 million, down from $3.3 million in the linked quarter [28] - Capital ratios remained above regulatory thresholds, with Tier one capital improving to 14.3% [29] Q&A Session Summary Question: Spot rate on total deposits - The total spot rate on deposits is 154 basis points [33] Question: Timeline for achieving 3% NIM - Management believes a 25 basis point pickup in NIM per year is reasonable, with potential upside from Fed funds rate reductions [36][37] Question: Outlook for loan growth - The guidance for loan growth remains in the low single digits, with expectations for improvement in the pipeline [38] Question: Changes on the wealth side - The partnership with Saterra is in production, aiming to enhance client experience and attract top advisors [44][46] Question: Capital return and buybacks - Management is likely to engage in share repurchases in the current quarter and into next year, given the current capital levels [51][52]

Financial Data and Key Metrics Changes - The company reported a net income of $7.5 million for Q3 2025, representing a 65% increase compared to Q3 2024 [3][8] - The net interest income rose to $28.2 million, driven by a higher balance of average earning assets and a 17 basis point increase in asset yield [8] - The total risk-based capital ratio stood at 16.13%, and the tangible common equity (TCE) ratio was 9.72% [6] Business Line Data and Key Metrics Changes - Total loan originations reached $101 million, with $69 million in fundings, marking the largest amount since Q2 2022 [4] - The company experienced a healthy increase in commercial real estate (CRE) loan demand [4] - Non-interest income saw a decline of $370,000, primarily due to a BOLI death benefit paid in Q2 [10] Market Data and Key Metrics Changes - Total deposits increased due to higher balances from long-time clients and new relationships [5] - The cost of deposits increased by one basis point during Q3, but the spot cost of deposits declined by 4 basis points to finish at 1.25% [8][9] Company Strategy and Development Direction - The company aims to continue improving core financial performance through balance sheet growth, net interest margin expansion, and effective expense management [12] - There is a focus on adding banking talent and enhancing efficiency through technology to support future growth [12] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is economic uncertainty, credit quality continues to improve, and loan demand remains healthy [12] - The loan pipeline is strong, with expectations for solid loan production in Q4 [12] Other Important Information - The board declared a cash dividend of $0.25 per share, marking the 82nd consecutive quarterly dividend [11] - The company repurchased $1.1 million of shares at prices below tangible book value [6] Q&A Session Summary Question: Thoughts on HTM securities loss trade - Management is evaluating various factors but has not made a final decision [18] Question: Updated thoughts on expenses and seasonality - Q4 is expected to resemble Q3, with payroll-related adjustments being a wildcard [19] Question: Deposit cost and margin expectations - The company is positioned for margin expansion with a focus on asset sensitivity and managing deposit costs [22][25] Question: Credit quality improvements and upgrades - Upgrades were due to improved leasing activity and specific project recoveries [27][28] Question: Loan demand and competition - There is increased loan demand, particularly in the Sacramento area, with aggressive pricing competition for high-quality deals [35][36] Question: Pipeline growth and hiring appetite - The pipeline is diverse, with a focus on opportunistic hiring to support growth [60]

Financial Data and Key Metrics Changes - The company reported a net income of $7.5 million for Q3 2025, representing a 65% increase compared to Q3 2024 [3][8] - The net interest income rose to $28.2 million, driven by a higher balance of average earning assets and a 17 basis point increase in asset yield [8] - The total risk-based capital ratio stood at 16.13%, and the tangible common equity (TCE) ratio was 9.72% [6] Business Line Data and Key Metrics Changes - Total loan originations reached $101 million, with $69 million in fundings, marking the largest amount since Q2 2022 [4] - The company experienced a healthy increase in commercial real estate (CRE) loan demand, indicating a diversified mix across various banking categories and industries [4] Market Data and Key Metrics Changes - Total deposits increased due to higher balances from long-time clients and new relationships, despite a competitive rate environment [5] - The cost of deposits increased by one basis point during Q3, but the spot cost of deposits improved, finishing at 1.25% [6][9] Company Strategy and Development Direction - The company aims to continue improving core financial performance through balance sheet growth, net interest margin expansion, and effective expense management [12] - There is a focus on adding banking talent and enhancing efficiency through technology to support future profitable growth [12] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is economic uncertainty, credit quality continues to improve, and loan demand remains healthy [12] - The loan pipeline is strong, with expectations for solid loan production in Q4 2025 [12] Other Important Information - The board declared a cash dividend of $0.25 per share, marking the 82nd consecutive quarterly dividend [11] - The company repurchased $1.1 million of shares at prices below tangible book value to enhance shareholder value [6] Q&A Session Summary Question: Thoughts on HTM securities loss trade - Management is evaluating various factors but has not made a final decision [18] Question: Updated thoughts on expenses and seasonality - Q4 expenses are expected to be similar to Q3, with payroll-related adjustments being a potential wildcard [19] Question: Deposit cost and margin expectations - The company anticipates further margin expansion due to a decline in deposit costs and expects benefits from future Fed Funds rate cuts [22][25] Question: Credit quality upgrades - Upgrades were attributed to improved leasing activity and specific project recoveries, with overall positive trends in credit quality [27][28] Question: Loan demand and competition - There is increased loan demand, particularly in the Sacramento area, with aggressive pricing competition for high-quality deals [35][36] Question: Pipeline growth and hiring appetite - The pipeline is diverse, with a focus on commercial real estate and affordable housing, and there is an appetite for opportunistic hires [58][60]

Financial Data and Key Metrics Changes - The company reported a net income of $7,500,000 for Q3 2025, representing a 65% increase compared to 2024 [4][8] - Net interest income rose to $28,200,000, driven by a higher balance of average earning assets and a 17 basis point increase in asset yield [10] - The total risk-based capital ratio stood at 16.13%, with a tangible common equity (TCE) ratio of 9.72% [6] Business Line Data and Key Metrics Changes - Total loan originations reached $101,000,000, with $69,000,000 in fundings, marking the largest amount since 2022 [5] - The company experienced a healthy increase in commercial real estate (CRE) loan demand, indicating a diversified mix across various banking categories [5][11] Market Data and Key Metrics Changes - Total deposits increased due to higher balances from long-term clients and new relationships, despite a competitive rate environment [6] - The cost of deposits increased by one basis point during the quarter, but the spot cost of deposits declined to 1.25% [10] Company Strategy and Development Direction - The company aims to continue improving core financial performance through balance sheet growth, net interest margin expansion, and disciplined expense management [13][14] - There is a focus on adding banking talent and enhancing efficiency through technology to support future profitable growth [13] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is economic uncertainty, credit quality continues to improve, and loan demand remains healthy [13] - The loan pipeline is strong, with expectations for solid loan production in Q4 2025 [13] Other Important Information - The company repurchased $1,100,000 of shares at prices below tangible book value to enhance shareholder value [6] - A cash dividend of $0.25 per share was declared, marking the 82nd consecutive quarterly dividend [12] Q&A Session Summary Question: Thoughts on HTM securities loss trade - Management is evaluating various factors but has not made a final decision [19] Question: Updated thoughts on expense run rate and seasonality - Q4 is expected to resemble Q3, with potential adjustments to payroll-related items [20][21] Question: Progress on deposit costs and margin expectations - The company is positioned for near-term benefits from rate declines, with expectations for margin expansion [31] Question: Credit upgrades and market conditions - Upgrades were due to improved leasing activity and specific project recoveries, with overall positive trends in credit quality [34][35] Question: Loan competition and pricing - There is aggressive pricing competition for high-quality deals, with a return of nonrecourse lending [46] Question: Pipeline growth and hiring plans - The company is actively hiring and expects increased activity in the Sacramento region, with a focus on new customer relationships [74][75] Question: Deposit growth and seasonality - Predicting deposit balance growth is challenging, but management does not foresee any abnormal outflows [88][90]