Independent UK law firm, Burges Salmon, has advised a club of lenders – comprising NORD/LB, Santander UK, Commonwealth Bank of Australia, Rabobank, and Aviva Investors – on its £240 million refinancing package for the Gresham House Energy Storage Fund plc (GRID), a 1 GW portfolio of 28 battery energy storage system (BESS) assets. The assets are strategically located across the UK and have all entered operation. The funds will be used to undertake augmentation works on the sites to increase battery capacity ...

Financial Data and Key Metrics Changes - The company reported net income of $26 million or $0.84 per diluted share, with core net income at $27 million or $0.88 per diluted share, reflecting solid performance [18] - Net interest income grew by 3.3%, reaching approximately $72.9 million, while the net interest margin held steady at 3.55% [18][19] - Tangible book value per share increased by $0.82 or 3.5% to $24.33, representing an 18% growth over the past four quarters [20] - Core return on average equity declined to 14.61% from 15.23% in the prior quarter, while core return on average assets decreased to 1.28% [20][21] Business Line Data and Key Metrics Changes - On-balance sheet deposits increased by $321 million or 4.3% to $7.7 billion, excluding $112.3 million of temporary pension funding deposits [22][24] - Loan growth was balanced at over $60 million across growth mode portfolios, with total loans receivable at $4.7 billion, reflecting a 0.8% increase compared to the previous quarter [25] - The multifamily loan portfolio increased by $34.2 million, while consumer loans and residential loans decreased by $11 million and $11.8 million, respectively [25] Market Data and Key Metrics Changes - Political deposits increased by $137 million or 13% to $1.2 billion, driven by fundraising activities ahead of midterm elections [7] - The not-for-profit segment also saw deposit growth of over $100 million, indicating a strong market presence [7] Company Strategy and Development Direction - The company is focused on organic growth in California, with plans to expand its presence in the state, particularly in the East Bay area [35][36] - A digital transformation initiative is underway, with a new platform expected to go live in the third quarter, aimed at improving productivity and customer insights [13] - The company aims to maintain a core efficiency ratio at approximately 52% while preparing for future growth beyond $10 billion in assets [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for the second half of 2025, citing a strong level of new customer acquisitions and a healthy pipeline of potential relationships [15] - The company maintains its full-year 2025 guidance for core pre-tax pre-provision earnings and net interest income, indicating confidence in achieving targets despite market challenges [31] Other Important Information - The company executed the largest share repurchase in its history, repurchasing approximately 327,000 shares worth $9.7 million [21] - The board authorized a dividend of $0.14 per common share to be paid in August, reflecting a commitment to returning capital to shareholders [21] Q&A Session Summary Question: Will the expansion in California be organic or involve M&A? - Management indicated that the expansion will primarily be organic, with opportunities in the LA area and East Bay [35][36] Question: What industry is the syndicated C&I credit related to, and what is the resolution timeline? - The credit is part of the commercial solar portfolio, and management is actively working on sourcing credit bids for resolution, but a timeline is uncertain [38][40] Question: Will provisioning run at a higher level due to pressures in multifamily or green energy? - Management stated that provisioning will be assessed on a case-by-case basis, and they feel comfortable with current reserves despite potential future pressures [41][42] Question: What is the outlook for net interest margin (NIM) and loan yields? - Management expects loan yields to improve in the upcoming quarters, with a potential for margin expansion in Q4 as political deposits ramp up [46][48] Question: What is the expected run rate for next quarter's expenses? - Expenses are expected to increase by approximately $3.5 million due to new hires and digital transformation costs, but management remains optimistic about revenue capabilities [50][52] Question: What are the long-term thoughts on dividend payout ratio? - The company targets a payout ratio of 20% to 25% and aims to increase dividends more frequently, reflecting a growth-oriented approach [53][54]