Core Viewpoint - Blue Foundry Bancorp reported a net loss of $2.0 million for Q2 2025, showing improvement compared to previous quarters, with a focus on net interest margin expansion and credit metrics stability [1][2]. Financial Performance - The net loss for Q2 2025 was $2.0 million, or $0.10 per diluted common share, compared to a loss of $2.7 million in Q1 2025 and $2.3 million in Q2 2024 [1]. - Net interest income for Q2 2025 was $11.6 million, an increase from $10.7 million in Q1 2025 and $9.6 million in Q2 2024 [11][17]. - The net interest margin increased by 12 basis points to 2.28% compared to Q1 2025 and by 32 basis points compared to Q2 2024 [11][17]. Loan Portfolio - Total loans increased by $89.6 million to $1.67 billion during the first half of 2025, with significant growth in consumer loans ($76.5 million) and commercial real estate loans ($33.5 million) [4][26]. - The multifamily loan portfolio decreased by $37.3 million [4][26]. - The allowance for credit losses was 0.80% of gross loans as of June 30, 2025, with non-performing loans totaling $6.3 million, or 0.38% of total loans [31][39]. Deposit Growth - Total deposits increased by $73.0 million to $1.42 billion since December 31, 2024, driven by increases in NOW and demand accounts and time deposits [7][26]. - Core deposits increased by $49.6 million, representing 48.4% of total deposits as of June 30, 2025 [7][26]. - Brokered deposits rose to $225.0 million from $155.0 million at the end of 2024 [26]. Non-Interest Expenses - Non-interest expenses decreased by $90 thousand compared to Q1 2025, primarily due to lower occupancy and equipment costs [10]. - Non-interest expenses for Q2 2025 were $13.5 million, an increase from $13.2 million in Q2 2024, driven by higher compensation and benefits expenses [13]. Capital and Shareholder Equity - Shareholders' equity was $321.3 million as of June 30, 2025, a decrease of $10.9 million from December 31, 2024, mainly due to share repurchases [26]. - The tangible equity to tangible assets ratio was 15.10% [26][39]. Market Strategy - The company is focusing on diversifying its loan portfolio and attracting full banking relationships with small- to medium-sized businesses [2][7]. - The strategy has contributed to core deposit growth, particularly among commercial customers [2].

Group 1 - Net interest margin is a crucial financial metric for community banks, serving as a primary driver for profits [1] - Banks strive to maximize interest income from loans while managing risk effectively [1] Group 2 - The article emphasizes the belief in the efficiency of financial markets, suggesting that most stocks reflect their true current value [1] - Profitable opportunities in individual stocks are often found in those that are less followed by average investors or do not accurately represent existing market opportunities [1]

Financial Data and Key Metrics Changes - In the fourth quarter, the company originated $29.4 million of loans held for investment, a 5% increase from $27.9 million in the prior quarter [5] - Loan principal payments and payoffs increased by 83% to $42 million from $23 million in the previous quarter [5] - The outstanding balance of loans held for investment decreased by $13.2 million from the previous quarter [9] - The net interest margin decreased by eight basis points to 2.94% compared to 3.02% in the prior quarter [9] - The average cost of deposits increased to 1.33%, up seven basis points, while the cost of borrowing increased to 4.58% [9] Business Line Data and Key Metrics Changes - Loans held for investment decreased primarily in multifamily, commercial real estate, and commercial business loans, partially offset by a small increase in single-family loans [6] - The company continues to see moderate activity in loans held for investment despite cautious behavior from real estate investors [6] - The weighted average rate of loans originated in June was 6.69%, compared to 5.16% for loans held for investment as of June 30, 2025 [10] Market Data and Key Metrics Changes - The company is monitoring commercial real estate loans, particularly those secured by office buildings, with a total exposure of $39.5 million, representing 3.8% of loans held for investment [7] - The company has approximately $117 million of loans repricing in September and $98 million repricing in December, both expected to increase by 15 basis points [11][27] Company Strategy and Development Direction - The company aims for disciplined growth of the loan portfolio, recognizing the shift in monetary policy and the reversal of the inverted yield curve [13] - The strategy includes maintaining cash dividends and utilizing stock buyback programs as a responsible capital management tool [15] - The company is focused on improving operating efficiencies to lower operating expenses, with a projected run rate of $7.6 million to $7.8 million per quarter for fiscal 2026 [12][13] Management's Comments on Operating Environment and Future Outlook - Management noted that current credit quality remains strong, with nonperforming assets unchanged at $1.4 million [6] - The company is optimistic about the future, suggesting opportunities for expansion of the net interest margin in the upcoming quarters [12] - Management indicated that the mix of loans may shift based on performance, with a preference for a balanced portfolio of single-family and multifamily loans [19] Other Important Information - The company repurchased approximately 76,000 shares of common stock in June and distributed about $3.8 million in cash dividends to shareholders for the fiscal year [15][16] - The company has exceeded well-capitalized capital ratios, allowing for the execution of its business plan without complications [14] Q&A Session Summary Question: Has the recent uptick in prepayments shifted your view on portfolio mix or originations? - Management indicated that they prefer a 50% mix of single-family and multifamily loans but will adjust based on performance, noting recent strength in multifamily and commercial real estate [19] Question: Is there an efficiency ratio that you target? - Management stated that the current operating expense baseline can support future growth, and as the loan portfolio grows, the efficiency ratio is expected to improve over time [21] Question: Is the increased payout this quarter a function of increased competition? - Management responded that both pricing and structure are factors, with tighter underwriting characteristics contributing to credit quality [25] Question: What is the dollar value of loans repricing in the next two quarters? - Management confirmed approximately $117 million repricing in September and $98 million in December, with specific interest rates provided [27][28] Question: What is the seasonality of operating expenses? - Management noted that March typically sees higher operating expenses due to employer taxes, while July 1 sees merit increases impacting future quarters [28][29] Question: What is the range of the loan deposit ratio? - Management explained that a higher loan to deposit ratio is typical for their business model, with a recent reduction from the 120s to the mid-one teens [30][32]

Financial Data and Key Metrics Changes - The company reported earnings per share of $1.36 for Q2 2025, an increase from $1.31 in the previous quarter and $1.19 year-over-year [4][23] - Adjusted return on assets was 1.31% and pre-provision ROAA was 1.72% [5] - Net interest income increased by $5.2 million to $153 million, with net interest margin expanding by six basis points to 4.21% [5][27] - Tangible common equity to tangible assets ratio was 9.42%, with a return on tangible common equity of 13.96% [9][34] - Non-interest income increased by $2.1 million to $21 million, driven by bank-owned life insurance and community development income [31] Business Line Data and Key Metrics Changes - Loan growth for the quarter was $110 million, with a year-over-year increase of approximately 4% [6][13] - The largest portion of loan growth came from commercial and industrial (C&I) loans, with new loan originations up 23% year-over-year [13][14] - Life insurance premium finance balances increased by $160 million or 16% year-over-year [17] - Specialty deposit verticals grew by $63 million for the quarter and $552 million or 18% year-over-year [20][21] Market Data and Key Metrics Changes - All geographic markets showed loan growth, with notable contributions from the Midwest and Southwest regions [18][19] - Client deposits grew by $73 million in the quarter and $778 million or roughly 7% year-over-year [19][20] - The company maintained a total loan to deposit ratio of 86% [7] Company Strategy and Development Direction - The company focuses on a diversified business model that capitalizes on higher growth markets while maintaining pricing discipline [4][5] - The strategic acquisition of a branch from First Interstate Bank is expected to enhance growth opportunities [10][35] - The management anticipates that ongoing economic improvements and M&A disruptions will lead to strong financial performance in the coming quarters [12] Management's Comments on Operating Environment and Future Outlook - Management noted that most clients are performing well, with sales and profits in line with 2024 expectations [11] - There is optimism for loan growth to exceed 4% in the latter half of 2025 due to pent-up demand and improved economic clarity [12][60] - The company is prepared to guide clients through economic uncertainties while taking advantage of M&A opportunities [12] Other Important Information - The company increased its dividend by $0.01 to $0.31 per share for 2025 [10][35] - Non-performing assets remained stable at 71 basis points of total assets, with a focus on managing credit quality [30] Q&A Session Summary Question: Expectations for fee income in the second half of the year - Management expects fee income to be similar to the first quarter, with potential contributions from SBA sales and other line items [39][40] Question: Outlook on expense levels - Management indicated that the current expense levels are expected to grow, influenced by merit increases and legal expenses related to non-performing loans [42][43] Question: Capital levels and branch acquisition impact - The branch acquisition is expected to normalize capital levels, with a focus on supporting growth and evaluating dividend policies [49][50] Question: Margin outlook for the next quarters - Management is optimistic about maintaining stable margins, with potential growth in net interest income dollars [54][56] Question: Loan growth expectations for the back half of the year - Management anticipates loan growth to increase to 5-7% in the latter half of the year due to improved economic conditions [60] Question: Team integration in Texas and growth strategy - A new team in Texas has begun operations without non-compete restrictions, focusing on low to mid-sized C&I businesses [75] Question: SBA loan sales strategy - The company is exploring SBA loan sales as a strategy to solidify fee income, with expectations for some level of gain in the third quarter [80]

Core Insights - NBT Bancorp reported a revenue of $171.81 million for the quarter ended June 2025, reflecting a year-over-year increase of 22.4% [1] - The earnings per share (EPS) for the same quarter was $0.88, up from $0.69 in the previous year, with an EPS surprise of +7.32% compared to the consensus estimate of $0.82 [1] Financial Performance Metrics - The net interest margin (FTE) was reported at 3.6%, slightly above the estimated 3.5% [4] - Total interest-earning assets averaged $13.96 billion, which was below the estimated $14.03 billion [4] - Net charge-offs to average loans were 0.1%, better than the estimated 0.2% [4] - Total noninterest income was $46.93 million, falling short of the $47.79 million estimate [4] - Insurance services generated $4.1 million, close to the estimated $4.13 million [4] - Retirement plan administration fees reached $15.71 million, exceeding the estimated $14.91 million [4] - Wealth management income was $10.68 million, slightly below the estimated $10.79 million [4] - Other income was reported at $3.5 million, significantly lower than the estimated $4.28 million [4] - Service charges on deposit accounts totaled $4.58 million, in line with the estimated $4.6 million [4] - Net interest income (FTE) was $124.88 million, surpassing the estimated $121.77 million [4] - Card services income was $6.08 million, above the estimated $5.88 million [4] Stock Performance - NBT Bancorp's shares have returned -1.2% over the past month, contrasting with the Zacks S&P 500 composite's +4.9% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Insights - Ottawa Bancorp, Inc. reported a net income of $0.5 million for Q2 2025, a significant improvement from a net loss of $(0.2) million in Q2 2024, indicating a positive operational turnaround [1][4] - For the first half of 2025, net income reached $0.9 million, compared to $0.1 million in the same period of 2024, showcasing consistent growth [1][8] - The company has initiated a stock repurchase program, repurchasing 59,053 shares at an average price of $14.74 per share, reflecting a commitment to enhancing shareholder value [2][3] Financial Performance - Total interest and dividend income for Q2 2025 was $4.2 million, up from $4.0 million in Q2 2024, driven by an increase in the average yield on interest-earning assets, which rose by 0.32% to 5.10% [4][24] - Interest expense decreased to $1.6 million in Q2 2025 from $1.8 million in Q2 2024, resulting in a lower average cost of funds of 2.13% compared to 2.29% [4][24] - Net interest income after provision for credit losses increased to $2.7 million in Q2 2025, up from $2.2 million in Q2 2024 [4][24] Asset Quality - The loan portfolio, net of allowance, increased to $302.2 million as of June 30, 2025, from $301.7 million at the end of 2024, indicating stable loan growth [1][14] - Non-performing loans decreased to $3.8 million at June 30, 2025, down from $4.8 million at December 31, 2024, improving the ratio of non-performing loans to gross loans from 1.58% to 1.23% [1][5] - The allowance for credit losses on loans was $4.1 million, or 1.34% of total gross loans, at June 30, 2025, compared to $4.3 million, or 1.40%, at June 30, 2024 [6][26] Financial Condition - Total consolidated assets decreased by $6.9 million, or 1.9%, to $346.8 million as of June 30, 2025, primarily due to a reduction in cash and cash equivalents [11][12] - Total deposits decreased by $6.0 million, or 2.1%, to $276.9 million at June 30, 2025, with notable declines in various account types [15][21] - Stockholders' equity decreased to $39.6 million at June 30, 2025, down from $40.2 million at December 31, 2024, reflecting share repurchases and cash dividends [17][21] Management Commentary - The CEO expressed satisfaction with the operational results, highlighting a reduction in the cost of funds and an increase in asset yields, which contributed to the expansion of the net interest margin [3][4] - The company remains cautiously optimistic about lending activities despite sluggish residential loan activity due to higher mortgage interest rates [3][4]

Financial Data and Key Metrics Changes - Earnings per share increased for the fourth consecutive quarter, reaching $1.60, up by $0.09 compared to the linked quarter [16] - Net interest income (NII) expanded by $3.9 million, marking the fifth consecutive quarter of growth, while net interest margin (NIM) increased by seven basis points [17][18] - Capital ratios improved, with Tier one capital at 14.2% and total risk-based capital at 15.2% [24] Business Line Data and Key Metrics Changes - The loan portfolio is balanced between consumer (56% or $7.9 billion) and commercial loans (44% or $6.1 billion), with a significant portion secured by real estate [11][12] - Consumer loans predominantly consist of residential mortgages and home equity, with a weighted average loan-to-value (LTV) of 48% [11] - Commercial real estate loans account for $4 billion, representing 29% of total loans, with low vacancy rates supporting a stable market [12] Market Data and Key Metrics Changes - Hawaii's employment continues to outperform the broader U.S. economy, with visitor expenditures up 6.5% year-to-date and arrivals up 2.8% through May [8] - Residential real estate prices in Hawaii are stable, with single-family home prices rising modestly and condo prices down 0.5% year-to-date [8] Company Strategy and Development Direction - The company maintains a unique business model focused on the local market, leveraging a strong brand position to effectively price deposits [6][7] - The strategy includes a focus on deposit remixing from lower yielding to higher yielding deposits while maintaining overall deposit levels [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a net interest margin of 2.50% by year-end, with expectations for continued growth in NII and NIM [32] - The company anticipates modest loan growth and plans to continue growing its securities portfolio [34] Other Important Information - Non-interest income increased to $44.8 million, with a one-time gain of approximately $800,000 related to a BOLI recovery [22] - Non-interest expense was $110.8 million, with a severance charge of $1.4 million included in this quarter [22] Q&A Session Summary Question: Margin path expectations - Management believes a net interest margin of 2.50% is achievable, with no obstacles anticipated [32] Question: Balance sheet growth and securities - The company expects to continue growing its securities portfolio, investing excess liquidity into it [34] Question: Trends in commercial and industrial loans - Commercial loan performance was disappointing, with a flat linked quarter, but management sees potential for improvement as market clarity increases [44] Question: Deposit dynamics and DDA growth - Management is focused on building demand deposits, which are high-margin products, but acknowledges the competitive landscape [48] Question: Expense growth expectations - The company expects a 2% to 3% increase in expenses for the year, with a potential step back in the second half [52] Question: Capital priorities and buybacks - The company plans to maintain its buyback position until there is more clarity on the economy [54] Question: Expected cash flows from securities and loans - Expected cash flows from the securities book are projected to be around $550 million [58]

Financial Data and Key Metrics Changes - The company reported adjusted earnings per diluted share of $0.72, representing an adjusted return on assets of 1.41% [4] - Net interest income increased by 4.6% over the prior quarter, while fee income rose by 15% [11] - The net interest margin improved by 10 basis points to 3.51% [12] - Adjusted pre-provision net revenue grew by 23.2% over the prior quarter [27] Business Line Data and Key Metrics Changes - The retirement services business generated stable revenue of over $16 million, with assets under administration and management increasing by 6.3% [17][18] - The wealth management business saw revenues increase by 6.6% on a linked quarter basis, with assets under management rising by 2.5% [18] - Noninterest income from banking was $8.4 million for the second quarter, with a $2.1 million gain related to the sale of hospitality loans [16] Market Data and Key Metrics Changes - Deposits shrank by 3.3% due to expected seasonal outflows from public funds [15] - The company expects continued seasonal volatility in deposits, with average deposit account sizes growing over 20% since 2019 [15] Company Strategy and Development Direction - The company is focused on maximizing profitability through disciplined pricing and enhancing its diversified business model [4][5] - Strategic initiatives include optimizing the balance sheet and investing in talent and technology to deepen client relationships [8][9] - The company aims to achieve consistent performance levels and is targeting mid-single-digit loan growth for 2025 [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic uncertainty and competitive pressures but emphasized a disciplined approach to growth and credit risk management [87] - The guidance for the year remains consistent, with expectations for low single-digit deposit growth and continued focus on core business lines [22][26] Other Important Information - The company recorded no provision for the quarter due to a net gain from the sale of hospitality loans [6] - The adjusted efficiency ratio improved to 52.4% from 66.9% in the prior quarter [19] - The company remains well-capitalized with a common equity Tier one capital ratio of 10.5% [21] Q&A Session Summary Question: What are the expectations for third and fourth quarter accretion? - The company expects 27 basis points of purchase accounting accretion in the third quarter and 22 basis points in the fourth quarter, with no early payoffs included [29][34] Question: What is the status of the larger construction credit? - The final certificate of occupancy was issued, and the property is currently at 57% leased, with expectations for a sale in early 2026 [37][65] Question: How does the company view the capital deployment for the rest of the year? - The company prioritizes organic balance sheet growth, maintaining dividend history, and pursuing M&A opportunities in the retirement sector [45] Question: What is the outlook for noninterest income? - The company expects noninterest income to be up low single digits for the year, factoring in seasonal downturns in the mortgage business [25][80] Question: How is the company addressing nonperforming assets? - Nonperforming assets are primarily driven by two large relationships, with resolutions expected in early 2026 [65][66] Question: What is the outlook for deposit costs? - The company anticipates an increase of 8 to 10 basis points in deposit costs due to competition and a shift from non-interest bearing to interest-bearing deposits [73][76]

Financial Data and Key Metrics Changes - The company reported GAAP fully diluted earnings of $1.15 per share, up 32% from the first quarter, driven by significant net interest margin expansion and increased contributions from SBA loan sales [6][11] - Pre-provision net revenue (PPNR) increased by 21% to $11,400,000 or $1.46 per share, with PPNR return on average assets rising to 143 basis points from 118 basis points in the previous quarter [11] - The net interest margin (NIM) improved to 310 basis points, a 29 basis point increase from the linked quarter, attributed to decreasing funding costs [11][12] Business Line Data and Key Metrics Changes - The SBA business is expected to deliver material growth to noninterest income, with SBA loan originations totaling $12,000,000 for the quarter, bringing year-to-date originations to $22,000,000 [7][13] - Noninterest income increased by 34% to $2,000,000, largely due to $1,100,000 from SBA gain on sale income [13] - Total noninterest expense rose modestly to $14,500,000, primarily due to increased salaries and employee benefits, reflecting ongoing investments in banking teams and risk functions [13][14] Market Data and Key Metrics Changes - Noninterest bearing deposits grew by $48,000,000 during the quarter, with a year-to-date increase of $75,000,000 or 23% since year-end [8] - The bank's funding profile improved with a significant reduction in brokered deposits, which have been decreased by over $400,000,000 from their peak [18] Company Strategy and Development Direction - The company is focused on expanding its SBA platform, attracting talented deposit teams, and investing in risk and technology platforms to prepare for technological evolution [16][19] - The management emphasized the importance of improving asset quality, with nonperforming loans dropping significantly from $65,000,000 to just under $24,000,000 [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued margin expansion into 2026, driven by the growth of noninterest bearing deposits and improved credit trends [8][12] - The company anticipates continued improvement in profitability and efficiency ratios, despite increasing noninterest expense guidance [14][19] Other Important Information - The company repurchased 14,626 shares at a weighted average price of $28.86 per share during the quarter, with 205,000 shares remaining on its authorization [15] Q&A Session Summary Question: What is the long-term target for DDAs to deposits? - Management indicated there is no hard target but aims to expand the percentage and reduce the wholesale funding ratio [21][23] Question: Should brokered deposits continue to decrease? - Management expects brokered deposits to decrease over time but acknowledges it will depend on market opportunities and deposit gathering efforts [24][25] Question: Update on health care customers? - Management reported that health care borrowers are not significantly impacted by new legislation, maintaining a positive outlook on the health care book [27] Question: Potential of new deposit teams? - Management highlighted the potential of new teams, noting their previous success in generating significant business, but emphasized that actual production will take time to materialize [32][34] Question: Timeline for resolution of nonperforming loans? - Management expects one nonperforming loan to be resolved in the next couple of months, while another may take longer due to its complexity [41] Question: Impact of a potential Fed rate cut on margin? - Management indicated that a 25 basis point cut would likely have a delayed impact on margins, but they remain optimistic about NIM improvements based on current repricing strategies [42][45]

Core Viewpoint - United Bankshares reported record results for Q2 2025, exceeding analyst expectations in both earnings and revenue, driven by successful acquisitions and improved performance metrics [1][2]. Financial Performance - GAAP earnings per share (EPS) reached $0.85, surpassing estimates of $0.76, and increased by 19.7% from $0.71 in Q2 2024 [2] - GAAP revenue was $306 million, exceeding the estimate of $298.8 million and up 35.6% from $225.7 million in Q2 2024 [2] - Net interest income rose to $274.5 million, a 22% increase year-over-year [2] - Return on average assets improved to 1.49%, up 0.17 percentage points from 1.32% in Q2 2024 [2] - Net interest margin expanded to 3.81%, an increase of 0.31 percentage points from 3.50% in Q2 2024 [2] Business Overview - United Bankshares operates as a commercial bank holding company, providing a range of banking services including loans and deposit services, with a focus on acquisitions to expand its market presence [3] - The company has completed 33 acquisitions, with the most recent being Piedmont Bancorp in January 2025, enhancing its footprint in the Mid-Atlantic and Southeast regions [3] Key Performance Drivers - The integration of Piedmont Bancorp significantly increased the customer base and average loans and deposits, contributing to a net loan portfolio growth of $2.45 billion year-over-year to $24.05 billion [5] - Commercial loans and leases grew from $15.89 billion in Q2 2024 to $18.48 billion in Q2 2025 [5] - Acquired loan accretion income contributed $11.8 million in Q2 2025, boosting the net interest margin [6] Credit Quality and Risk Management - Nonperforming loans decreased to 0.28% of total loans, while net charge-offs increased to 0.14% of average loans, indicating a return to typical loss levels post-pandemic [8] - The company set aside $5.9 million for potential loan losses, consistent with the prior year [9] Deposits and Expenses - Total deposits rose 14.2% year-over-year to $26.34 billion, with increases in both interest-bearing and noninterest-bearing accounts [10] - Noninterest expenses increased by 10% year-over-year, primarily due to staff and operational costs from acquisitions, but merger-related expenses decreased significantly [11] Shareholder Returns - The quarterly dividend was maintained at $0.37 per share, with a payout ratio below half of earnings, and share repurchase activity resumed with 981,000 shares bought back at an average price of $33.17 [12] Outlook - Management did not provide numeric guidance for the remainder of fiscal 2025 but highlighted ongoing momentum from acquisitions and disciplined expense management as key supports [13] - Investors should monitor the sustainability of margin expansion, deposit cost trends, and credit risk associated with commercial and real estate loans [14]