Core Insights - SR Bancorp returned to profitability in Q4 2025, reporting GAAP net income of $823,000 ($0.10 per share), a significant recovery from a GAAP net loss of $3.0 million ($0.34 per share) in Q4 2024 [1][2] - Revenue reached $7.97 million, marking a 96.7% increase year-over-year, primarily due to improved asset quality and the absence of merger-related costs from the previous year [1][2] - The net interest margin narrowed to 2.90% from 3.22%, reflecting rising funding costs and competitive pressures in the deposit market [1][7] Financial Performance - Net income increased by $3.9 million compared to the prior year, driven by the completion of merger-related restructuring and normalization of taxes and credit provisions [5] - Adjusted net income (Non-GAAP) was $515,000, compared to a loss of $499,000 in the previous year [2][5] - Total deposits rose to $846.0 million, a 4.8% increase from $807.1 million in Q4 2024 [2][7] Business Overview - SR Bancorp operates as a community bank in New Jersey, offering a range of banking services including deposit accounts, residential and commercial mortgages, and business lending solutions [3] - The company's growth strategy focuses on market expansion, particularly following the acquisition of Regal Bancorp, which enhanced its commercial lending capabilities [3] Operational Highlights - Loan portfolio growth was robust, with net loans increasing by 8.9% year-over-year, driven by residential and multi-family loans [7] - Noninterest income improved significantly, moving from a loss in the prior period to a positive figure, as the company did not repeat last year's loss from security sales [6] - Noninterest expense rose by 3.3%, with higher salaries and benefits partially offset by lower data processing costs post-merger [8] Future Outlook - Management did not provide explicit forward guidance for fiscal 2026, highlighting ongoing challenges related to net interest margin pressure and rising funding costs [11] - Investors are expected to monitor the bank's core profitability and seek clarity on potential margin stabilization, with asset quality and deposit mix being key factors [12]

Financial Performance - Net income for Q4 FY25 was $25215 million, and year-to-date net income reached $834 million[4] - Net interest margin stood at 510% for Q4 FY25 and 482% year-to-date[4] - Return on equity was 2073% and return on assets was 238% for Q4 FY25[4] - Basic earnings per share (EPS) for Q4 FY25 were $306 ($300 diluted), and year-to-date EPS were $1031 ($1008 diluted)[4] Loan Portfolio - Total loan volume for Q4 FY25 was $3626 million, with a year-to-date volume of $21 billion[4] - National Lending invested $417 million on $444 million of UPB in Q4 FY25, and $8632 million on $9461 million of UPB year-to-date[4] - SBA loans originated in Q4 FY25 amounted to $1043 million, with $1076 million sold, resulting in a gain on sale of $82 million[4] - Purchased loans constitute the largest portion of the National Lending portfolio, with a total balance of $2375157 million and an average LTV of 50%[7] Deposit Portfolio - The grand total of deposits reached $3375600 million as of June 30, 2025, with a weighted average rate (WAR) of 373%[48] - Brokered deposits make up 47% of the deposit mix, totaling $1595857 million with a WAR of 411%[48]

Financial Data and Key Metrics Changes - The company reported net income of $10 million or 48 cents per diluted common share, with net interest income increasing by $2.5 million to $50 million compared to the linked quarter [13][14] - The tax equivalent net interest margin expanded by 13 basis points to 3.57% in the second quarter, driven by higher earning asset volumes and yields [14] - The consolidated CET1 ratio was 11.02% at June 30, 2025, up five basis points from March 31, 2025 [13] Business Line Data and Key Metrics Changes - Solid loan growth of 7.4% was reported, with commercial loan production reaching $215 million, the highest in the last six quarters [5][11] - Wealth management revenues increased by 5% linked quarter, and SBA fee income doubled compared to the same period last year [6][11] - Noninterest income was $10.2 million, slightly up from $10.1 million in the linked quarter, driven by increases in wealth management, card revenue, and mortgage origination fees [15] Market Data and Key Metrics Changes - Average deposits remained flat, while end-of-period deposits decreased slightly; however, noninterest-bearing balances were ahead of both the linked quarter and the year-ago quarter [10] - The loan pipeline showed strength, particularly in commercial and industrial lending, offsetting small declines in agricultural and commercial real estate lending [10][11] Company Strategy and Development Direction - The company continues to execute its 2025 strategic initiatives, focusing on disciplined balance sheet management and building a high-performing team [5][6] - There is a commitment to expanding talent in key markets, with significant new hires in commercial banking and wealth management [6][12] - The company is exploring M&A opportunities, focusing on geographic expansion and enhancing business lines that can add value [66] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strength of the balance sheet and underlying earnings momentum, positioning the company well for the remainder of 2025 [8][73] - The expectation for mid-single-digit loan growth remains for the second half of 2025, with a focus on organic growth [5][11] - Management anticipates that credit loss expenses will normalize in the back half of the year, reflecting a more historical level [36] Other Important Information - A significant impact on asset quality and net income was noted due to a single $24 million nonaccrual loan, which has been classified and is undergoing resolution [7] - The company revised its 2025 annual expense guidance to a range of $146 million to $148 million due to recent talent investments [16] Q&A Session Summary Question: Can you unpack the C&I growth for the quarter? - Management noted strong contributions across various regions and industries, with a mix of existing and new clients driving growth [18][19] Question: What are the expectations for net interest margin in the second half of the year? - Management expects continued margin expansion, albeit at a slower pace of 4 to 5 basis points per quarter [48] Question: What happened with the large CRE loan that impacted asset quality? - Management explained that the loan was a non-owner occupied office in suburban Minneapolis that moved to nonaccrual due to payment issues, but it is currently cash flowing [26][28] Question: How do you see the impact of recent hires on long-term growth? - Management indicated that seasoned bankers are expected to contribute immediately, with a more significant impact anticipated in 2026 [44][45] Question: What are the priorities for potential M&A targets? - The focus is on geographic expansion and enhancing business lines that can add value, with a preference for digestible-sized transactions [66]

Financial Data and Key Metrics Changes - The company achieved record revenue of $226.3 million, a 5% increase year-over-year [4] - Adjusted earnings per share were $0.74, with a return on assets of 1.54% and a return on tangible common equity of 20% [4][15] - Net interest margin increased to 4.05%, a 17 basis point increase from the previous quarter [10][15] - Adjusted noninterest income rose to $67.8 million, an 11% increase from the linked quarter and a 10% increase year-over-year [5][19] - Adjusted noninterest expenses increased by 1% compared to the first quarter [6] Business Line Data and Key Metrics Changes - Loan growth was 2% on an annualized basis, with broad-based growth in most portfolios except for commercial real estate, which declined due to higher payoffs [5][10] - Average deposit balances increased by $114 million, primarily due to a seasonal influx in public funds and higher noninterest-bearing deposits [11][16] - Noninterest income was led by double-digit growth in mortgage and bank card income, with leasing and foreign exchange businesses also performing well [12][19] Market Data and Key Metrics Changes - The company maintained 21% of total balances in noninterest-bearing accounts, focusing on growing lower-cost deposit balances [11] - Adjusted uninsured deposits were $3.8 billion, equating to 27% of total deposits, with the company comfortable with this concentration [18] Company Strategy and Development Direction - The company is focused on expense management, with adjusted noninterest expenses increasing slightly due to marketing and incentive compensation [12][19] - The Board of Directors approved a $0.01 increase in the common dividend to $0.25, maintaining a payout ratio of approximately 35% of net income [8][14] - The company announced plans to acquire Westfield Bank in Northeast Ohio, with expectations for approval and closing to occur this year [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about loan growth in the second half of the year, expecting easing payoff pressures and higher production [22] - For Q3, loan growth is expected to be in the low to mid-single digits on an annualized basis, with net interest margin anticipated to remain strong [23] - Credit costs are expected to approximate prior quarter levels, with charge-offs projected to be in the 20 to 25 basis point range [23] Other Important Information - Asset quality remained stable, with net charge-offs declining to 21 basis points of total loans [6][21] - The tangible common equity ratio increased to 8.4%, with tangible book value per share rising to $15.4, a 4% increase from the linked quarter [7][14] Q&A Session Summary Question: On the margin and funding side - Management indicated that deposit costs are expected to decrease slightly, with a potential rate cut in September impacting future costs [29][30] Question: Impact of payoffs on loan growth - Management noted that while payoffs have affected growth, they expect a return to more normalized growth rates in the future [38][39] Question: Asset quality concerns - Management addressed an increase in nonaccruals due to downgrades of two commercial borrowers, with expectations for resolution by year-end [44][46] Question: Loan growth consistency - Management confirmed consistent growth in consumer and commercial loans, with expectations for stronger performance in the second half of the year [58][60]

Core Insights - 1st Source reported Q2 2025 earnings per share (GAAP) of $1.51, exceeding analyst expectations of $1.47, while provisions for credit losses increased due to higher net charge-offs in auto and truck portfolios [1][2][7] Financial Performance - Q2 2025 revenue (GAAP) reached $108.25 million, an 11.3% increase from $97.27 million in Q2 2024 [2] - Net interest income (GAAP) rose to $85.19 million, a 15.0% increase year-over-year, driven by higher loan balances and improved net interest margin of 4.01% [2][5] - Average loans and leases grew to $6.97 billion, up 5.48% year-over-year, with significant growth in Commercial and Agricultural, Renewable Energy, and Construction Equipment portfolios [5] - Noninterest income (GAAP) was relatively flat at $23.06 million compared to Q2 2024, impacted by lower insurance commissions and equipment rental income [6] Asset Quality and Risk Management - Provisions for credit losses (GAAP) more than doubled to $7.69 million from $3.27 million in Q1 2025, with net charge-offs rising to $1.87 million [7] - Nonperforming assets as a share of loans and leases increased to 1.06%, primarily due to issues in the auto and light truck segment [7] - The allowance for loan and lease losses rose to $163.48 million, representing 2.30% of total loans and leases [7] Capital and Deposits - Average deposits increased by 2.3% to $7.35 billion, although noninterest-bearing deposits declined [8] - The bank's Common Equity Tier 1 ratio stood at 14.60%, indicating a strong capital base [8] - Tangible book value per share increased to $45.44 from $39.16 in Q2 2024 [8] Dividend and Outlook - The quarterly dividend was raised by 5.6% to $0.38 per share [10] - Management expressed confidence in the bank's balance sheet and liquidity, while acknowledging ongoing economic uncertainty and the need to monitor asset quality [10][11]

Financial Data and Key Metrics Changes - The company reported net earnings of $72 million or $0.55 per share for the quarter, with an annualized return on average assets of 1.19% and an adjusted return on average tangible equity of 16.79% [4][10] - The pretax pre-provision return on average assets was 1.64%, showing improvement from the previous quarter and the same quarter last year [5][10] - Revenue increased to a record $214 million for the quarter, driven by record net interest income of $187 million and noninterest income of $27 million [10][14] - The tangible book value per share grew by $0.45 to $14.6, and the tangible common equity ratio improved to 8.03% [5][14] Business Line Data and Key Metrics Changes - The commercial lending team closed approximately $764 million in new loans, bringing total production to a record $1.4 billion for the first half of the year, with an annualized growth rate of 8% in the commercial loan portfolio [6][10] - The production mix consisted of 20% commercial real estate and 80% commercial and industrial loans [6] - Provident Protection Plus saw an 11.3% increase in revenue for the second quarter, while Beacon Trust revenue declined by 5.2% due to a decrease in average market value of assets under management [8][9] Market Data and Key Metrics Changes - Deposits increased by $260 million on an annualized growth rate of 5.6%, with the average cost of total deposits decreasing to 2.1% [6][12] - The loan pipeline remains robust at approximately $2.6 billion, with a weighted average interest rate stable at 6.3% [7][12] - Nonperforming assets declined to 44 basis points of total assets, with net charge-offs decreasing to $1.2 million or three basis points of average loans [12][13] Company Strategy and Development Direction - The company aims to enhance its asset management business by focusing on growing assets under management (AUM) and integrating better with other business lines [18][19] - The management is open to mergers and acquisitions but is currently focused on organic growth, evaluating strategic options as they arise [26][45] - The company is diversifying its commercial loan portfolio to reduce reliance on commercial real estate [30][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining momentum throughout the remainder of 2025, supported by strong capital formation and credit quality [5][9] - The economic forecast has improved, leading to a reserve release, and management expects modest provisioning in the second half of the year [20][22] - The company does not foresee any immediate slowdown in loan demand, indicating a positive outlook for continued growth [50] Other Important Information - The effective tax rate for the quarter was 29.7%, with expectations to approximate 29.5% for the remainder of 2025 [14] - Noninterest expenses were $114.6 million, with an efficiency ratio improving to 53.5% for the quarter [14] Q&A Session Summary Question: Changes in Beacon business strategy - Management clarified that there is no significant change in strategy but a focus on enhancing sales and service to grow AUM [18][19] Question: Provisioning and economic forecast - The reserve release was primarily driven by improved economic forecasts, particularly the commercial property price index [20] Question: M&A considerations - Management remains open to M&A opportunities but is currently focused on organic growth [26] Question: Drivers of C&I loan growth - The growth in commercial and industrial loans is attributed to a diverse set of products and increased line utilization [29][30] Question: Wealth management fees and AUM - Wealth management fees were impacted by lower average AUM due to market volatility, but there has been a recovery in asset valuations [35] Question: Expense guidance for the second half of the year - Management indicated potential for lower expenses in the back half of the year, influenced by incentive accruals and nonrecurring costs [38] Question: Municipal deposit flow seasonality - Management expects seasonal inflows in municipal deposits and indicated that brokered deposits were used to manage funding needs [39][41] Question: NIM trajectory and competition - The company anticipates NIM improvements despite competitive pressures, with a focus on asset repricing and new loan production [52][56]

MATTOON, Ill., July 24, 2025 (GLOBE NEWSWIRE) -- First Mid Bancshares, Inc. (NASDAQ: FMBH) (the “Company”) today announced its financial results for the quarter ended June 30, 2025. Highlights Record high quarterly net income of $23.4 million, or $0.98 diluted EPS, quarterly increase of $0.05Adjusted quarterly net income* of $23.7 million, or $0.99 diluted EPSNet interest margin tax equivalent* expands to 3.72%, quarterly increase of 12 basis points, helping drive the fifth consecutive quarter of growth in ...

Financial Data and Key Metrics Changes - Net income for Q2 2025, excluding notable items, totaled $24.5 million, up 7% from $22.9 million in Q1 2025 [5] - Reported a net loss of $27.9 million for Q2 2025 due to one-time losses from selling lower-yielding legacy securities and merger-related items [5] - Pretax pre-provision net revenue, excluding notable items, grew to $41.2 million in Q2 2025, up 17% from $35.2 million in Q1 2025 [6] Business Line Data and Key Metrics Changes - Total deposits grew to $15.9 billion, an increase of 10% from the prior quarter, driven by the acquisition of Territorial Bancorp [8] - Loans receivable increased to $14.4 billion, up 8% from the end of the prior quarter, reflecting the addition of Territorial's loan portfolio [9] - Organic loan production increased by 57% from Q1 2025, contributing to modest net growth in the legacy portfolio [10] Market Data and Key Metrics Changes - Average cost of interest-bearing deposits declined by 37 basis points quarter over quarter, and average cost of total deposits decreased by 22 basis points [8] - Broker deposits decreased by $183 million or 19% quarter over quarter, with the broker deposits ratio declining to 5% of total deposits [9] Company Strategy and Development Direction - The acquisition of Territorial Bancorp is seen as a strategic move to enter the Hawaii market, enhancing growth opportunities [4] - Strengthening the deposit franchise remains a key priority, with a focus on reducing broker deposit exposure and improving the cost of funds [8] Management's Comments on Operating Environment and Future Outlook - Management expects loan growth in 2025 to be at a high single-digit percentage rate, driven by improved frontline productivity and hiring [24] - The company anticipates net interest income growth in the high single-digit percentage range for 2025, despite the negative impact of delayed Fed rate cuts [25] Other Important Information - The company declared a quarterly common stock dividend of $0.14 per share, payable on August 15, 2025 [7] - The effective tax rate is expected to be approximately 14% for the third and fourth quarters, reflecting changes in California state tax apportionment law [26] Q&A Session Summary Question: Any updates on fee income expectations for the second half of the year? - Management highlighted positive drivers for fee income growth, including customer swap fee income and loan-related fees [30] Question: What is the average yield on new loan production? - The average yield on new production was approximately 6.76% [67] Question: What is the expected impact of the Territorial acquisition on cost savings? - Management indicated that there are still integration and cost savings expected in the second half of the year, but specifics will be shared later [35] Question: How is the company viewing asset quality in the current environment? - Management expressed cautious optimism regarding asset quality, noting a decline in criticized loans and stable overall credit quality [50] Question: What is the target loan-to-deposit ratio? - The target loan-to-deposit ratio is up to 95%, with current levels below 91% [57]

Financial Data and Key Metrics Changes - Net income for the second quarter of 2025, excluding notable items, totaled $24,500,000, up 7% from $22,900,000 in the preceding first quarter [5] - Reported a net loss of $27,900,000 for the second quarter due to one-time losses from selling lower yielding legacy securities and merger-related items [5] - Pretax pre-provision net revenue excluding notable items grew to $41,200,000, up 17% from $35,200,000 in the first quarter [6] - Net interest income totaled $118,000,000 for the second quarter, an increase of 17% from the prior quarter [11] - Net interest margin increased by 15 basis points quarter over quarter to 2.69 for the second quarter [14] Business Line Data and Key Metrics Changes - Total deposits grew to $15,900,000,000, an increase of 10% from the end of the prior quarter [7] - Loans receivable of $14,400,000,000 were up 8% from the end of the prior quarter, reflecting the addition of Territorial's loan portfolio [8] - Organic loan production increased 57% from the first quarter level [8] - Noninterest income of $15,900,000, excluding notable losses, was up 44% year over year [15] Market Data and Key Metrics Changes - Broker deposits decreased by $183,000,000 or 19% quarter over quarter, with the broker deposits ratio declining to 5% of total deposits [8] - Criticized loans declined by $34,000,000 or 8% quarter over quarter [19] - Non-performing assets totaled $113,000,000, representing 61 basis points of total assets, up from 49 basis points as of March 31 [19] Company Strategy and Development Direction - The acquisition of Territorial Bancorp is seen as a strategic move to enter the important Hawaii market [4] - Strengthening the deposit franchise remains a key priority, with a focus on reducing broker deposits and improving the cost of funds [7] - The company expects loan growth at a high single-digit percentage rate for 2025, driven by improved frontline productivity and hiring [22] Management Comments on Operating Environment and Future Outlook - Management remains cautiously optimistic about asset quality, despite some uncertainties in the macroeconomic environment [51] - The company anticipates net interest income growth in the high single-digit percentage range for 2025, despite the negative impact of fewer Fed funds rate cuts [22] - The effective tax rate is expected to be approximately 14% in the third and fourth quarters due to changes in California state tax apportionment law [24] Other Important Information - The Board of Directors declared a quarterly common stock dividend of $0.14 per share [6] - The company plans to continue recognizing pretax acquisition accounting adjustments associated with the Territorial transaction on a quarterly basis [12] Q&A Session Summary Question: Fee income guidance for the second half of the year - Management highlighted positive drivers such as customer swap fee income growth and improved loan-related fee income [30] Question: Spot rate on deposits and assumptions for the outlook - The spot rate at June was 2.93%, with expectations for higher betas on deposit products during upcoming rate cuts [31][32] Question: Cost savings from the Territorial acquisition - Management indicated that there are still more integration and cost savings expected in the second half of the year, but specifics will be shared later [35] Question: Loan growth expectations and hiring impact - Management confirmed ongoing hiring of experienced bankers to drive loan production, with expectations for increased loan growth in the latter half of the year [47] Question: Asset quality and credit outlook - Management expressed cautious optimism regarding asset quality, noting a decline in criticized assets and manageable levels of problem loans [51] Question: One-time costs related to the acquisition - Management indicated there will be a couple million more in one-time costs in the third and fourth quarters [65] Question: Average yield on new loan production - The average yield on new production was approximately 6.76% [68]

Core Insights - Preferred Bank reported a GAAP net income of $32.8 million, or $2.52 per share, in Q2 2025, reflecting a sequential increase driven by approximately 7% annualized loan growth and an expanded net interest margin (NIM) of 3.85% [1] Capital Management - The company executed a $56 million share buyback at an average price of $80.81 per share, significantly below the current market price of $97.03, and has secured authorization for an additional $125 million buyback program, which has not yet commenced due to valuation sensitivity [2][3] - Management's disciplined approach to capital return indicates a willingness to deploy excess capital opportunistically while adhering to valuation thresholds that enhance per-share value creation [3] Funding and Deposit Stability - Despite competitive pressures, the cost of deposits remained stable at around 3.41%, with maturing certificates of deposit (CDs) totaling $1.4 billion being renewed at or just under 4% in Q3, supporting stable NIM performance and deposit retention [4] - The company has maintained flat deposit balances through active cost controls, balancing competitive rate offers with funding needs [5] Loan Growth and Asset Quality - The commercial and industrial (C&I) and commercial construction portfolios drove approximately 7% annualized loan growth, with a decline in nonaccrual, criticized, and past-due loans quarter over quarter, indicating improved asset quality [6][7] - Management asserts that loan loss reserves remain adequate, and further signs of increasing loan demand have appeared, although caution is maintained due to macroeconomic uncertainties [6] Future Outlook - Management provided guidance that noninterest expense will be in the range of $21.8 million to $22.6 million in Q3 and Q4, excluding expectations of further other real estate owned write-downs [8] - A new Silicon Valley branch is scheduled to open in the second half of 2025, expanding the bank's geographic reach, although no explicit quantitative forward guidance was provided for net interest income, loan growth, or NIM [8]