Financial Data and Key Metrics Changes - The company reported record quarterly net income of $195.5 million, up from $189 million in the previous quarter [6] - Net interest income also reached a quarterly record of $547 million, driven by loan growth of $2.3 billion in the second quarter [6][10] - Total assets grew by $3.1 billion to $69 billion, including the impact of a $425 million preferred stock offering [11][16] Business Line Data and Key Metrics Changes - Residential mortgage activity increased slightly but remains muted in the current rate environment [8] - The property and casualty premium finance group saw over $1 billion in growth, while commercial real estate grew by $377 million [20][21] - The mortgage warehouse team grew by $213 million, indicating strong onboarding of new relationships [21] Market Data and Key Metrics Changes - The company experienced a 17% increase in deposits over the prior quarter, totaling $2.2 billion [10] - Loan growth for the first half of the year was $3 billion, representing a 12% annualized increase [11] - Non-performing loans as a percentage of total loans remained stable, with charge-offs for the quarter unchanged at 11 basis points [24] Company Strategy and Development Direction - The company aims for continued mid to high single-digit loan growth for the second half of the year, supported by strong pipelines [6][35] - Management emphasized a disciplined approach to growth, avoiding opportunities with unfavorable pricing or credit structures [7] - The company is cautiously optimistic about the overall business environment, with a focus on maintaining strong credit quality [24] Management's Comments on Operating Environment and Future Outlook - Management noted that credit quality remains very good, with a stable environment for non-performing loans and charge-offs [24] - There is a belief that the impacts of economic uncertainties will be limited due to strong underwriting standards [23] - The company is optimistic about the business environment as it enters the second half of the year, with strong pipelines in core markets [22][24] Other Important Information - The company continues to build tangible book value per share and has grown it every year since going public [16] - The recent preferred stock issuance will impact earnings per share calculations in the third quarter but will not affect operating net income [17][18] Q&A Session Summary Question: Loan growth expectations for Q3 - Management expects loan growth to be in line with historical trends, targeting mid to high single digits [35] Question: Sources of deposit growth - Deposit growth is broad-based, with significant contributions from commercial and consumer households [38] Question: Wealth management outsourcing progress - The conversion to the LPL platform is largely complete, and the company sees growth potential in the wealth management business [40] Question: NII growth sustainability - Management believes mid to high single-digit NII growth is reasonable given stable margins and asset growth [45] Question: Deregulation impact on M&A - The company is hopeful for regulatory adjustments that could facilitate growth and is open to acquisition opportunities [52] Question: Core C&I sentiment and growth - There is cautious optimism among core commercial clients, with sentiment improving compared to previous quarters [56] Question: Non-performing loans in CRE portfolio - The increase in non-performing loans is minor and attributed to a few specific credits, with overall management feeling confident [58] Question: Competitive pricing and loan yield compression - There has been some margin compression, but the company maintains a disciplined pricing strategy [66] Question: Capital targets and CET1 ratios - The company views a 10% CET1 ratio as a floor and expects gradual growth in capital with earnings [111]

Financial Data and Key Metrics Changes - The company reported net income of $22.6 million or $1.39 per diluted share for Q2 2025, compared to $18.8 million or $1.17 per diluted share for Q2 2024, reflecting a strong year-over-year growth [13] - Net income for the first half of 2025 totaled $42.2 million or $2.6 per diluted share, compared to $40.3 million or $2.5 per diluted share for the same period in 2024 [13] - Interest income on loans increased by $3.1 million during Q2 2025 compared to the prior year, driven by strong loan growth [15] - Average loans grew to $4.7 billion in Q2 2025, a nearly 7% increase from $4.4 billion in Q2 2024 [14] - The net interest margin declined by 14 basis points in 2025 compared to Q2 2024, impacted by a 100 basis point decline in the federal funds rate [17] Business Line Data and Key Metrics Changes - Mortgage banking income increased by 23.4% in 2025 compared to 2024, with a significant reduction of $50 million in residential mortgages on the balance sheet [6][8] - Service charges on accounts grew by 18.1%, reflecting growth in the deposit base and increased activity levels [8] - Payroll services revenue increased by 15.2%, indicating a successful high-service model [8] - Credit and debit card income grew by 3.7%, while interest rate swap income recovered significantly in Q2 2025 compared to Q1 2025 [9] Market Data and Key Metrics Changes - The company experienced a 13% increase in local deposits as of June 30, 2025, compared to the same date in 2024, which helped reduce the loan-to-deposit ratio from 107% to just under 100% [9] - The strategic partnership with Eastern Michigan Bank is expected to enhance deposit gathering activities and provide entry into new markets [10] Company Strategy and Development Direction - The company announced a strategic partnership with Eastern Michigan Bank, which is expected to provide cost savings and enhance balance sheet liquidity [10][11] - The transition to a new core provider, Jack Henry, is scheduled for early 2027, with expected cost savings and improved service delivery [11] - The company aims to grow its loan portfolio, particularly in mortgage banking and larger commercial loans, leveraging the strengths of Eastern Michigan Bank [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current economic uncertainty, with expectations of loan growth of 1% to 2% in Q3 and 3% to 5% in Q4 2025 [21] - The company is focused on maintaining a strong balance sheet and minimizing the impact of changing interest rates on net interest margin [18] - Management noted that customers continue to report strong results despite the challenging operating environment [8] Other Important Information - The company recorded a provision expense of $1.6 million in Q2 2025, reflecting increased allocations on specific financially stressed lending relationships [18] - The effective tax rate for Q2 2025 was about 13%, significantly lower than the projected rate of 19%, due to the acquisition of transferable energy tax credits [19] - The total risk-based capital ratio was 13.9% as of June 30, 2025, indicating a well-capitalized position [20] Q&A Session Summary Question: Can you provide details on cost savings related to the core system change? - Management expects cost savings of approximately $5.5 million, with about 50% realized in 2026 and over 90% in 2027, following the core conversion [28][30] Question: What are the growth opportunities in the Eastern Michigan loan portfolio? - The loan book is of high quality, and management sees opportunities to grow in mortgage banking and larger commercial loans [34] Question: How does the company plan to manage deposit and loan growth? - The company aims for loan growth of 5% to 8% annually and will continue to focus on local deposit growth to support this [42][44] Question: What is the outlook for fee income in the second half of the year? - Management anticipates a step down in fee income from strong Q2 results, particularly in mortgage banking and interest rate swaps [54] Question: What is the expected timing for the closing of the Eastern Michigan Bank acquisition? - The acquisition is expected to close in the back half of Q4 2025, likely around November 30 or year-end, pending regulatory approval [55] Question: Are there additional M&A opportunities on the horizon? - Management remains open to pursuing additional M&A opportunities if they find a partner with similar strengths as Eastern Michigan Bank [64]

Financial Data and Key Metrics Changes - The company reported net income of $22.6 million or $1.39 per diluted share for Q2 2025, compared to $18.8 million or $1.17 per diluted share for Q2 2024, reflecting a strong year-over-year growth [12] - Total net income for the first half of 2025 was $42.2 million or $2.6 per diluted share, up from $40.3 million or $2.5 per diluted share in the same period of 2024 [12] - Interest income on loans increased significantly, with average loans totaling $4.7 billion in 2025, a growth rate of almost 7% compared to the previous year [13] Business Line Data and Key Metrics Changes - Mortgage banking income increased by 23.4% in 2025 compared to 2024, with a notable decrease of $50 million in residential mortgages on the balance sheet [6][7] - Service charges on accounts grew by 18.1%, reflecting growth in the deposit base and increased activity levels [7] - Payroll services revenue grew by 15.2%, indicating a strong service model [7] Market Data and Key Metrics Changes - The deposit base increased by 13% as of June 30, 2025, compared to the same date in 2024, which helped reduce the loan-to-deposit ratio from 107% to just under 100% [8] - The company expects loan growth of 1% to 2% in Q3 and 3% to 5% in Q4 of 2025, influenced by larger balance commercial real estate payoffs [21] Company Strategy and Development Direction - The strategic partnership with Eastern Michigan Bank aims to enhance organic growth and improve the loan-to-deposit ratio, while also providing entry into new markets [9] - The company plans to transition to a new core provider, Jack Henry, in early 2027, which is expected to yield significant cost savings and operational efficiencies [10][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current economic uncertainties, highlighting strong customer performance despite challenges [6] - The company anticipates continued growth in net interest income and a stable net interest margin, projecting a range of 3.5% to 3.6% for Q3 and 3.55% to 3.65% for Q4 [21] Other Important Information - Non-performing assets totaled $9.7 million as of June 30, 2025, representing 16 basis points of total assets, indicating strong asset quality [6] - The company recorded a provision expense of $1.6 million in Q2 2025, reflecting increased allocations on specific financially stressed lending relationships [18] Q&A Session Summary Question: Can you provide details on cost savings related to the core system change? - Management expects cost savings of approximately $5.5 million, with about 50% realized in 2026 and over 90% in 2027, aligning with the core conversion timeline [27][28] Question: What are the growth opportunities in the Eastern Michigan loan portfolio? - The loan book is of high quality, and the company plans to focus on growing the mortgage banking business and larger commercial loans in that region [34][35] Question: How does the company plan to manage deposit and loan growth? - The company aims to maintain a loan growth rate of 5% to 8% annually, with a focus on local deposit growth to support this [42][45] Question: What is the outlook for fee income in the second half of the year? - Management anticipates a step down in fee income from strong Q2 results, particularly in mortgage banking and interest rate swap income [55] Question: What is the expected timeline for the acquisition closing? - The acquisition is expected to close in the back half of Q4, around November 30 or year-end, pending regulatory approval [56]

Core Insights - Mercantile Bank Corporation reported a net income of $22.6 million, or $1.39 per diluted share, for Q2 2025, an increase from $18.8 million, or $1.17 per diluted share, in Q2 2024 [1][2] - The bank's total assets reached $6.18 billion as of June 30, 2025, reflecting a growth of $129 million from December 31, 2024 [12] - The partnership with Eastern Michigan Financial Corporation is expected to enhance Mercantile's position as the largest bank headquartered in Michigan and support strategic goals [25] Financial Performance - Net revenue for Q2 2025 was $60.9 million, up 7.4% from $56.7 million in Q2 2024 [3] - Net interest income increased to $49.5 million, a rise of 5.1% from $47.1 million in the same quarter last year [3][4] - Noninterest income grew to $11.5 million, an increase of 18.4% from $9.7 million in Q2 2024, driven by higher mortgage banking income and other service fees [7][8] Asset Quality - Nonperforming assets totaled $9.7 million, or 0.2% of total assets, as of June 30, 2025, compared to $5.7 million, or less than 0.1%, at the end of 2024 [18][19] - The bank recorded provisions for credit losses of $1.6 million in Q2 2025, down from $3.5 million in Q2 2024, indicating improved asset quality [6][19] Capital Position - Shareholders' equity increased to $632 million as of June 30, 2025, up $47 million from December 31, 2024 [20] - The bank maintained a total risk-based capital ratio of 13.9%, categorizing it as "well-capitalized" [20][21] Loan and Deposit Trends - Total loans increased by $97.2 million, or an annualized 4.3%, during the first half of 2025, primarily due to growth in commercial loans [12] - Total deposits were $4.71 billion as of June 30, 2025, with local deposits down slightly but offset by an increase in brokered deposits [16] Strategic Initiatives - The bank aims to lower its loan-to-deposit ratio through local deposit generation and has seen success in expanding existing deposit relationships [2][17] - The partnership with Eastern Michigan Financial Corporation is expected to provide substantial excess liquidity and enhance Mercantile's operational footprint [25]

Financial Data and Key Metrics Changes - The company reported net income of $61.4 million and diluted earnings per share of $1.12, representing an 18% increase from the second quarter of 2024 [13] - Pre-provision net revenue was $87.9 million, with a return on average assets of 1.4% and a return on common equity of 14.56% [13] - Net interest income for the quarter was $131.7 million, with adjusted net interest income at $129.4 million, which is $5.9 million higher than the first quarter of 2025 [17][19] - The adjusted margin increased to 3.05%, up 13 basis points from the previous quarter and 26 basis points from the same quarter last year [16] Business Line Data and Key Metrics Changes - Loan growth was solid at 11% annualized, with a year-to-date growth of 25% [10][13] - The company experienced elevated payoffs in commercial real estate but was able to replace these with new projects [5][6] - Non-interest income was significantly impacted by a bond book restructure, with an adjusted net interest revenue of just under $9 million for the quarter [20] Market Data and Key Metrics Changes - The company noted a normalization of higher-cost municipal and correspondent deposits during the quarter [7] - The loan-to-deposit ratio is in the mid-80% range, indicating a strong liquidity position [60][61] Company Strategy and Development Direction - The company is focusing on organic loan and deposit growth while maintaining price discipline for both loans and deposits [23] - A new merchant card processing team was hired to increase revenue from merchant services, aiming to improve penetration rates among existing customers [9][34][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in loan demand, indicating a robust pipeline for the second half of the year despite some headwinds from payoffs [10][41] - The company expects its margin to continue increasing throughout the year, particularly if the Federal Reserve lowers benchmark rates [19] Other Important Information - The company underwent a significant restructuring of its bond portfolio, resulting in an $8.6 million loss but positioning for stronger margin performance in future quarters [14] - The tangible book value grew by an annualized 12.5% compared to the last quarter, ending at $31.27 per share [16] Q&A Session Summary Question: What is the expected trajectory for net interest margin? - The adjusted margin for the quarter was 3.06%, and it is expected to increase by about 10 to 14 basis points each quarter, potentially reaching 3.20% to 3.25% by year-end [25][26] Question: How does the company plan to drive deposit growth? - The company is managing its funding needs to align with loan growth and is prepared to onboard deposits as necessary [27][28] Question: Can you provide insights on the new lenders and markets? - The new hires include a mix of former employees and interns, with a focus on supporting existing production staff rather than expanding into new markets [30][31] Question: What trends are observed in commercial credit demand? - Management noted broad-based demand across various markets, with construction loans increasing due to a mix of new production and projects with significant equity [40][41] Question: What are the expectations for deposit cost trends? - Deposit costs are expected to normalize around the first quarter levels, with an adjusted cost of deposits around 3.50% to 3.57% [50][51] Question: What is the outlook for the loan-to-deposit ratio? - The company is comfortable with the current mid-80% loan-to-deposit ratio and prefers to be in a position where it needs to generate deposits rather than loans [61][62]

Financial Data and Key Metrics Changes - The company reported net income of $61.4 million for Q2 2025, representing an 18% increase from Q2 2024, but a slight decrease of 3% from Q1 2025 [12][16] - Diluted earnings per share were $1.12, with a return on average assets of 1.4% and a return on common equity of 14.56% [12] - The adjusted net interest margin improved to 3.05%, up 13 basis points from the previous quarter and 26 basis points from the same quarter last year [15] - The tangible book value grew by an annualized 12.5% from the last quarter, ending at $31.27 per share [15] Business Line Data and Key Metrics Changes - Loan growth was solid at 11% annualized, with a year-to-date growth of 25% [4][9] - The company experienced elevated payoffs in commercial real estate (CRE) but was able to replace these with new projects [5] - Non-interest income was significantly impacted by a bond portfolio restructuring, with a reported loss of $8.6 million [13][18] Market Data and Key Metrics Changes - The company noted a normalization of higher-cost municipal and correspondent deposits during the quarter [6] - The loan demand was characterized as good but not great, with a robust loan pipeline expected to continue [4][9] Company Strategy and Development Direction - The company is focusing on organic loan and deposit growth, emphasizing competitive and profitable pricing [22] - A new merchant services team was hired to enhance production in the merchant banking area, aiming to increase penetration among existing customers [8][32] - The company is strategically restructuring its bond portfolio to improve margin performance in future quarters [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the loan pipeline, indicating broad-based demand across various markets [40] - The company expects net interest margin to continue increasing, potentially reaching 3.20% to 3.25% by year-end, absent any Fed actions [25] - Management noted that while there are isolated incidents of credit deterioration, no systemic issues were identified [10] Other Important Information - The company successfully unwound a third-party processing configuration, switching to a direct relationship with Jack Henry, which is expected to yield cost savings [21] - The effective tax rate saw a slight decrease, and the company is strategizing to further reduce tax expenses [22] Q&A Session Summary Question: What is the expected trajectory for net interest margin? - The adjusted margin is 3.06% for the quarter, with expectations to increase by 10 to 14 basis points each quarter, potentially reaching 3.20% to 3.25% by year-end [24][25] Question: How does the company plan to drive deposit growth? - The company is managing through necessary funding for loan growth and is prepared to onboard deposits as needed [26][27] Question: Can you provide details on the new lenders and markets? - The new lenders are primarily support staff, with a focus on existing markets like Memphis and Auburn, Alabama [30][31] Question: What trends are observed in commercial credit demand? - Demand is broad-based across various markets, with construction loans increasing due to the need for reserves [39][40] Question: What are the expectations for deposit cost trends? - Deposit costs are expected to normalize around the first quarter levels, with an adjusted cost of deposits around 3.50% to 3.57% [50] Question: What is the outlook for loan-to-deposit ratios? - The adjusted loan-to-deposit ratio is in the mid-80% range, with a preference to generate deposits rather than loans [58]

Core Viewpoint - Preferred Bank reported a net income of $32.8 million or $2.52 per diluted share for Q2 2025, reflecting a $2.8 million increase from the previous quarter but a slight decrease of $745,000 compared to the same quarter last year [1][2]. Financial Performance - Net interest income for Q2 2025 was $66.9 million, an increase of $4.2 million from the prior quarter and $767,000 from the same quarter last year [4]. - The net interest margin improved to 3.85%, up from 3.75% in the previous quarter but down from 3.96% in the same quarter last year [2][4]. - Noninterest income was $3.8 million, compared to $3.4 million in the same quarter last year and $4.0 million in the previous quarter [5]. Loan and Deposit Growth - The loan portfolio increased by 1.8% linked quarter, while deposits saw only a slight increase [2]. - Total loans reached $5.74 billion, an increase of $99.0 million from December 31, 2024 [9]. - Total deposits were $6.08 billion, up by $161.5 million from $5.92 billion as of December 31, 2024 [9]. Asset Quality - Non-accrual loans decreased from $78.9 million as of March 31, 2025, to $51.2 million at June 30, 2025 [3]. - Total criticized loans decreased to $104.5 million from $129.2 million in the prior quarter [10]. Noninterest Expense - Total noninterest expense was $22.5 million for Q2 2025, down from $23.4 million in the previous quarter but up from $19.7 million in the same period last year [6]. - The decrease from the prior quarter was primarily due to a reduction in personnel expenses [6]. Tax and Capitalization - The provision for income taxes was $13.7 million, resulting in an effective tax rate of 29.5% [7]. - As of June 30, 2025, the Bank's tangible capital ratio was 10.26%, and the total capital ratio stood at 14.43% [12].

Core Insights - Simmons First National reported non-GAAP earnings per share of $0.44, exceeding analyst expectations of $0.39, while revenue was $214.2 million, slightly below the consensus forecast of $216.66 million [1][2] - The quarter demonstrated progress in profitability, margin expansion, and efficiency, despite a slow growth pace and rising credit costs [1] Financial Performance - Non-GAAP EPS increased by 33.3% year-over-year from $0.33 in Q2 2024 [2] - Revenue grew by 8.6% compared to Q2 2024, up from $197.2 million [2] - Net interest income rose by 11.6% year-over-year to $171.8 million [2] - Noninterest expense decreased slightly by 0.6% year-over-year to $138.6 million [2] - The net charge-off ratio increased to 0.25%, up from 0.19% in Q2 2024 [2] - Return on average tangible common equity (non-GAAP) improved to 10.97%, up from 8.89% in Q2 2024 [2] Operational Highlights - The net interest margin reached 3.06%, marking the fifth consecutive quarter of growth [6] - Cost of deposits decreased to 2.36%, down from 2.79% in Q2 2024 [6] - Noninterest income fell by about 2% year-over-year, primarily due to lower fee income from interest rate swaps [7] - Loan balances remained stable at $17.1 billion, with growth in commercial and industrial loans [8] - The deposit base held steady at $21.8 billion, with an increase in brokered deposits [9] Asset Quality and Capital Management - Nonperforming loans rose to $157.2 million from $103.4 million in Q2 2024, affecting the nonperforming loan coverage ratio [10] - The common equity tier 1 (CET1) ratio improved to 12.36%, above regulatory requirements [11] - Tangible book value per share increased to $16.97, with no share repurchases during the period [11] Strategic Focus - The company is focused on maintaining asset quality, strong capital ratios, cost control, and organic growth [4] - Management highlighted a strong loan pipeline of $1.6 billion, with $564 million close to funding [13] - The company aims to manage deposit competition and increase low-cost deposits [13][14]

Financial Data and Key Metrics Changes - Profit before tax, excluding treasury, grew by 11.4% year on year to INR 156.90 billion in Q1 FY '26 [4] - Core operating profit increased by 13.6% year on year to INR 175.05 billion [4] - Profit after tax grew by 15.5% year on year to INR 127.68 billion [4] - Total deposits grew by 12.8% year on year and were flat sequentially [4] - Average current and savings account deposits grew by 8.7% year on year and 3.9% sequentially [5] - Net interest income increased by 10.6% year on year to INR 216.35 billion [17] - Noninterest income, excluding treasury, grew by 13.7% year on year to INR 72.64 billion [19] Business Line Data and Key Metrics Changes - Domestic loan portfolio grew by 12% year on year and 1.5% sequentially [5] - Retail loan portfolio grew by 6.9% year on year and 0.5% sequentially [5] - Business banking portfolio grew by 29.7% year on year and 3.7% sequentially [6] - Corporate portfolio grew by 7.5% year on year but declined by 1.4% sequentially [6] - Mortgage portfolio grew by 10.3% year on year and 1.9% sequentially [9] - Auto loans grew by 2.2% year on year but declined by 0.7% sequentially [9] Market Data and Key Metrics Changes - The net NPA ratio was 0.41% at 06/30/2025 compared to 0.43% at 06/30/2024 [7] - Total provisions during the quarter were INR 18.15 billion, or 10.4% of core operating profit [21] - Capital position remained strong with a CET1 ratio of 16.31% and total capital adequacy ratio of 16.97% [8] Company Strategy and Development Direction - The strategic focus is on growing profit before tax through a customer-centric approach and enhancing delivery capabilities [3] - The company aims to maintain a strong balance sheet, prudent provisioning, and healthy levels of capital while delivering sustainable returns [8] - The business banking segment is expected to grow faster than the overall loan book [52] Management Comments on Operating Environment and Future Outlook - Management noted that global events have impacted sentiment but expect positive effects from monetary easing [34] - The company is focused on improving customer acquisition and becoming the primary banker for retail customers [56] - There is a cautious outlook on unsecured retail growth, with expectations for better performance in personal loans and credit cards [64] Other Important Information - The provisioning coverage ratio on non-performing loans was 75.3% at 06/30/2025 [7] - The combined ratio for ICICI General stood at 102.9% in Q1 FY '26 [25] - The profit after tax of ICICI Life was INR 3.02 billion in Q1 FY '26 compared to INR 2.25 billion in Q1 FY '25 [25] Q&A Session Summary Question: Clarification on margins and growth - Management confirmed that the reported margin for Q4 would have been lower than reported due to the number of days in the quarter [33] - On growth, management indicated that global events have impacted sentiment but expect improvements due to monetary easing [34] Question: Corporate loan mix and business banking performance - The decline in high-rated corporate loans is attributed to demand and pricing factors, with a focus on maintaining a balanced risk-reward profile [49] - Business banking growth is driven by distribution, process, and technology improvements [51] Question: Cost of deposits and unsecured retail growth - The decline in cost of deposits was primarily due to savings account rate cuts and a reduction in wholesale deposits [59] - Management expressed confidence in improving growth in personal loans and credit cards moving forward [64] Question: Asset quality monitoring in business banking - Management stated that the business banking portfolio is closely monitored, with current credit behavior being benign [68]

Core Insights - Regions Financial Corporation (RF) reported second-quarter 2025 adjusted earnings per share (EPS) of 60 cents, exceeding the Zacks Consensus Estimate of 56 cents and up from 53 cents in the same quarter last year [1][9] - The stock price of RF increased by 5.1% in early market trading following the earnings announcement [1] Financial Performance - Total quarterly revenues reached $1.9 billion, which was 2.9% below the Zacks Consensus Estimate but represented a 10.1% increase year over year [3] - Net interest income (NII) was $1.25 billion, reflecting a 6.2% year-over-year increase, while the net interest margin improved by 14 basis points to 3.65% [3] - Non-interest income surged by 18.5% year over year to $646 million [3] - Non-interest expenses rose by 6.9% year over year to $1.07 billion, with adjusted non-interest expenses also increasing by 4% [4] Loan and Deposit Trends - Total loans slightly decreased to $96.1 billion as of June 30, 2025, while total deposits increased by 1.4% to $129.4 billion [5] Credit Quality - Non-performing assets as a percentage of loans decreased to 0.84% from 0.88% year over year, and non-performing loans as a percentage of net loans fell to 0.80% from 0.87% [6] - A provision for credit losses of $126 million was recorded, marking a 23.5% increase from the previous year [6] Capital Position - As of June 30, 2025, the Common Equity Tier 1 ratio was 10.7% and the Tier 1 capital ratio was 11.8%, both showing improvement from the previous year [8] - The company repurchased 7 million shares for $144 million during the quarter [10] Outlook - The company's core business and revenue diversification strategies are expected to drive strong earnings in the future, although declining loans and rising expenses present challenges [11]