Financial Data and Key Metrics Changes - GAAP earnings per share for Q2 2025 were $0.97, up $0.06 or 6.6% year-over-year and up $0.04 or 4.3% from the previous quarter [10] - Operating earnings per share were $1.04, compared to $0.95 a year prior and $0.98 in the linked first quarter [10] - Total operating revenues reached $199.3 million, an increase of $16.1 million or 8.8% year-over-year and up $3.3 million or 1.7% from the previous quarter [10][11] - Net interest income was $124.7 million, representing a $4.5 million or 3.8% increase from the previous quarter and a $15.3 million or 14% improvement year-over-year [11] - The company's net interest margin increased by six basis points to 3.30% [11] Business Line Data and Key Metrics Changes - The Employee Benefits Services business was flat year-over-year, with recordkeeping growing at high single digits while Fiduciary Trust faced headwinds [6] - Insurance Services experienced a pull forward of contingency payments into Q1, impacting Q2 results [6] - Wealth Management Services saw muted revenue growth year-over-year but an increase in operating pretax earnings by 16% [7] Market Data and Key Metrics Changes - Ending loans increased by $98 million or 0.9% during Q2, primarily driven by growth in consumer indirect lending [14] - Total deposits increased by $563.9 million or 4.3% year-over-year but decreased by $190.3 million or 1.4% from the previous quarter [14] - Nonperforming loans totaled $53.3 million or 51 basis points of total loans outstanding, a decrease from the previous quarter [17] Company Strategy and Development Direction - The company announced a branch acquisition that is expected to close in Q4 2025, enhancing its market presence and liquidity [8][19] - The company is focused on organic loan growth and expanding into under-tapped markets within its Northeast footprint [14] - The management is optimistic about the pipeline strength and expects to meet previously communicated growth targets [5][19] Management's Comments on Operating Environment and Future Outlook - Management noted that competition in lending has intensified, impacting loan pricing and yields [22][24] - The company is bullish on its pipeline and expects to achieve mid-single-digit growth in lending portfolios [41][44] - Management expressed confidence in the company's diversified revenue profile and strong liquidity as a foundation for continued earnings growth [19] Other Important Information - The company recorded a provision for credit losses of $4.1 million during Q2, compared to $2.7 million in the prior year's second quarter [12] - Total non-interest expenses increased by $10.1 million or 8.5% year-over-year, driven by higher salaries and employee benefits [13] Q&A Session Summary Question: Can you speak to the competitive landscape you're seeing in terms of lending? - Management acknowledged that competition has intensified, with many competitors trying to regain market share through rate and credit adjustments [22][23] Question: How are you feeling about the quarterly NIM expansion from here? - Management indicated that they expect NIM expansion to be closer to three to five basis points moving forward [26] Question: Will the acquired deposits boost liquidity and be invested over time? - Management stated that the acquired deposits will primarily support loan growth over the coming years, with some proceeds initially staying in short-term instruments [27] Question: Can you talk about OpEx trends from here? - Management noted that restructuring charges are part of consolidating branches and that they expect OpEx to remain flat moving forward [32][34] Question: How is the branch acquisition progressing? - Management confirmed that the acquisition is on track and complements their organic growth strategy [36][37] Question: Can you provide an update on the De Novo branch build-out? - Management reported that seven out of the planned 19 De Novo branches have opened, with expectations to complete the build-out by the end of the year [55][56] Question: Any updates on loan yields and their recent performance? - Management clarified that the recent increase in loan yields was in line with expectations and not due to any atypical factors [58] Question: Is there any update regarding the CHIPS Act and Micron's plans? - Management confirmed that Micron is still on track to break ground later this year, with an increase in expected investment [60]