Core Insights - Associated Banc-Corp achieved a record net interest income of $300 million in Q2 2025, leading to GAAP earnings per share of $0.65, surpassing analyst estimates of $0.62 [1][2][5] - Despite the record net interest income, GAAP revenue fell short of expectations at $300 million, down 6.8% year-over-year, primarily due to subdued noninterest income growth [1][2][6] Financial Performance - GAAP EPS for Q2 2025 was $0.65, a decrease of 12.2% from $0.74 in Q2 2024 [2] - Total GAAP revenue was $300 million, down from $321.75 million in Q2 2024 [2] - Net interest income increased by 16.9% year-over-year, from $256.59 million in Q2 2024 [2][5] - Net interest margin improved to 3.04%, up from 2.75% a year earlier [2][5] - Total noninterest expense rose to $209 million, a 7% increase from the previous year [9] Business Operations - Associated Banc-Corp operates 188 branches across over 100 communities, focusing on retail and commercial banking services [3] - The bank's strategic focus includes accelerating commercial loan growth, improving deposit mix, and managing risk [4] - Commercial loan balances grew to $30.6 billion, reflecting a 3% year-over-year increase [7] Deposit Trends - Total deposits decreased by $1.0 billion or 3% sequentially but increased by 4% year-over-year [8] - Core customer deposits also fell by 3% from the previous quarter [8] - Noninterest-bearing demand deposits declined by 5.8% compared to the previous year [8] Credit Quality - Provision for credit losses rose by $5 million from the previous quarter but decreased by $5 million compared to last year [10] - Nonaccrual loans decreased to 0.37% of total loans from 0.52% a year ago [10] - The allowance for credit losses on loans increased slightly to 1.35% of total loans [10] Future Guidance - Management raised its outlook for net interest income growth to 14%-15% for the full year 2025 [13] - Noninterest income is expected to grow by 1%-2% annually, while noninterest expenses are projected to rise by 4%-5% [13] - Full-year loan growth is anticipated at 5%-6%, with total deposit growth guidance adjusted to 1%-3% [13]

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]

Core Insights - Preferred Bank reported a net income of $30.0 million or $2.23 per diluted share for Q1 2025, reflecting a slight decrease from the previous quarter and a larger decrease compared to the same quarter last year, primarily due to reduced net interest income [1][3][7] Financial Performance - Net interest income was $62.7 million, down $6.5 million from the previous quarter and $5.8 million from the same quarter last year, largely due to a $2.8 million reversal of interest income from nonaccrual loans [2][7] - Noninterest income increased to $4.0 million, up $361,000 from the prior quarter and $933,000 from the same quarter last year, driven by higher letter of credit fee income and gains on sales of SBA loans [2][8] - Noninterest expense totaled $23.4 million, a decrease of $4.9 million from the previous quarter but an increase of $3.3 million compared to the same quarter last year, influenced by higher personnel and OREO expenses [2][9] Asset Quality - Non-accrual loans amounted to $78.9 million, primarily consisting of two well-secured loans totaling $65.6 million, with no anticipated losses [4][13] - Total criticized loans decreased to $129.2 million from $158.2 million at year-end, indicating improved asset quality [4][14] - The provision for credit losses was $700,000, significantly lower than the $2.0 million in the previous quarter and $4.4 million in the same quarter last year [15] Capitalization and Ratios - As of March 31, 2025, the Bank's tangible capital ratio was 10.96%, leverage ratio was 11.52%, and total capital ratio stood at 15.15%, showing stable capitalization [16][28] - Return on average assets was 1.76% and return on beginning equity was 15.96%, reflecting solid profitability metrics [9][27] Balance Sheet Summary - Total gross loans were $5.63 billion, a slight decrease from the previous quarter, while total deposits increased by $155.9 million to $6.07 billion [12][28] - Total assets rose to $7.1 billion, an increase of $176.7 million from the previous quarter, indicating growth in the Bank's overall financial position [12][28]