Company Announcement - Ready Capital Corporation will release its second quarter 2025 financial results after the New York Stock Exchange closes on August 7, 2025 [1] - Management will host a webcast and conference call on August 8, 2025, at 8:30 a.m. Eastern Time to provide a business update and discuss the financial results for the quarter ended June 30, 2025 [1] Webcast and Dial-in Information - The company encourages the use of the webcast due to potential extended wait times for the conference call via dial-in, with the webcast available in the Investor Relations section of the company's website [2] - The conference call can be accessed by dialing 877-407-0792 for domestic calls or 201-689-8263 for international calls [3] Replay Information - A replay of the call will be available on the company's website approximately two hours after the live call and will remain accessible through August 22, 2025 [4] - To access the replay, the domestic dial-in number is 844-512-2921 and the international number is 412-317-6671, with a replay pin number of 13753253 [4] Company Overview - Ready Capital Corporation is a multi-strategy real estate finance company that originates, acquires, finances, and services investor and owner-occupied commercial real estate loans [5] - The company specializes in loans backed by commercial real estate, including agency multifamily, investor, construction, and bridge loans, as well as U.S. Small Business Administration loans under its Section 7(a) program [5] - Headquartered in New York, the company employs approximately 500 professionals nationwide [5]

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]

ABERDEEN, Wash., July 25, 2025 (GLOBE NEWSWIRE) -- Pacific Financial Corporation (OTCQX: PFLC), (“Pacific Financial”) or (the “Company”), the holding company for Bank of the Pacific (the “Bank”), reported net income of $2.7 million, or $0.27 per diluted share for the second quarter of 2025, compared to $2.4 million, or $0.24 per diluted share for the first quarter of 2025, and $2.1 million, or $0.21 per diluted share for the second quarter of 2024. The current quarter’s net income relative to the prior quar ...

Financial Performance - GAAP reported net income was $1332 million in 2Q25, compared to $1061 million in 1Q25 and $704 million in 2Q24[3] - Non-GAAP adjusted net income was $1344 million in 2Q25, compared to $1061 million in 1Q25 and $716 million in 2Q24[3] - Adjusted pre-provision net revenue (PPNR) increased by 5% quarter-over-quarter and 21% year-over-year[5] - Net Interest Margin (NIM) increased to 301% in 2Q25[13] - The company's efficiency ratio (Non-GAAP) was 552% in 2Q25, compared to 559% in 1Q25 and 596% in 2Q24[3] Balance Sheet Strength - The company is aiming for a Commercial Real Estate (CRE) / Total Risk-Based Capital (TRBC) ratio of less than 350% by the end of 2025[7] - The company is aiming for an Allowance for Credit Losses (ACL) / Loans ratio between 120% and 125% by the end of 2025[8] - The company is aiming for a Loans / Deposits ratio of less than 97% by the end of 2025[10] Strategic Initiatives and Guidance - The company is focused on growing core deposits, further diversifying the loan portfolio, and driving sustainable fee revenue[5] - The company expects gross loan growth of approximately 3% in 2025[21] - The company expects net interest income growth of 8%-10% in 2025, based on a 2024 figure of $1629 million[21]

Financial Performance - Net income for Q2 2025 was $93 million[8] - Diluted earnings per share (EPS) reached $052[8] - Net interest margin (NIM) expanded to 292%[8] - Return on average tangible common equity was 850%[8] Balance Sheet & Loan Portfolio - Gross loans held for investment (HFI) increased to $323 billion[8] - Total deposits amounted to $319 billion[8] - Annualized loan growth was 12%[9, 13] - Loans HFI increased by $916 million[13] Asset Quality - Nonperforming loans (NPLs) decreased by $36 million or 6%[9] - NPLs/Total Loans ratio was 176%[8] - Nonperforming assets (NPAs) decreased to $610 million[8] Capital & Efficiency - Common Equity Tier 1 (CET1) Ratio was 1761%[8] - Tangible common equity (TCE) ratio was 1107%[8] - Efficiency ratio improved to 5722%[8] Deposits - Deposits increased by $456 million or 6% annualized[13] - Uninsured deposits totaled $15 billion, representing 478% of total deposits[50]

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 - The company reported record quarterly net income of $195.5 million, up from $189 million in the previous quarter, representing a growth of approximately 2.6% [5] - Net interest income also reached a record high of $547 million, driven by loan growth of $2.3 billion in the second quarter, which reflects a 19% annualized increase [5][10] - Total assets grew by $3.1 billion to $69 billion, including the impact of a $425 million preferred stock offering [11] Business Line Data and Key Metrics Changes - Residential mortgage activity increased slightly but remains muted in the current rate environment, with the company managing expenses to protect financial results [7] - The property and casualty premium finance group saw growth of over $1 billion, while commercial real estate grew by $377 million and mortgage warehouse grew by $213 million [19][20] - Non-interest income totaled $124.1 million, up approximately $7.5 million from the prior quarter, with increases in mortgage banking and wealth management revenue [13] Market Data and Key Metrics Changes - The company experienced a 17% increase in deposit growth, amounting to $2.2 billion on an annualized basis, which helped fund the strong loan growth [9] - The net interest margin for the quarter remained stable at 3.54%, indicating effective management of interest income and expenses [6][12] Company Strategy and Development Direction - The company aims for continued mid to high single-digit loan growth for the second half of the year, supported by strong pipelines and disciplined growth strategies [5][21] - Management emphasized a client-first approach, focusing on delivering sophisticated financial solutions while maintaining expense discipline [26] - The company is cautiously optimistic about the overall business environment, with a focus on maintaining strong credit quality and managing risks effectively [22] Management's Comments on Operating Environment and Future Outlook - Management noted that credit quality remains strong, with non-performing loans stable and charge-offs unchanged from the previous quarter [22][23] - There is a belief that the impacts of economic uncertainties will be limited due to strong underwriting standards and a diversified portfolio [21] - The company is optimistic about the potential for M&A activity, driven by market dynamics and opportunities arising from regulatory changes [51][92] Other Important Information - The company continues to build tangible book value per share and has grown it every year since going public [15] - The recent preferred stock issuance will impact earnings per share calculations in the third quarter, but not operating net income [16][17] Q&A Session Summary Question: Loan growth expectations for Q3 - Management expects loan growth to remain in the mid to high single digits based on the June 30 balance [33][34] Question: Sources of deposit growth - Deposit growth is broad-based, with significant contributions from commercial and consumer households [36] Question: Wealth management outsourcing progress - The conversion to the LPL platform is largely complete, and the focus is now on serving clients and growing the wealth business [37] Question: NII growth sustainability amid deposit competition - Management anticipates mid to high single-digit NII growth, supported by stable margins and asset growth [43][46] Question: Impact of deregulation on the company - Management is hopeful for regulatory adjustments that could facilitate growth and acquisition opportunities [51] Question: Borrower sentiment and loan growth - Borrower sentiment is cautiously optimistic, with improved confidence in the economic environment [111] Question: Non-performing loans in the CRE portfolio - The increase in non-performing loans is attributed to a few specific credits, but overall management remains confident in the portfolio's health [96]

Core Insights - MainStreet Bancshares, Inc. reported a net income of $4.6 million for the quarter ended June 30, 2025, an increase of $2.1 million from the previous quarter, driven by a net interest margin expansion to 3.75%, up by 45 basis points [1] - The company's net interest income rose by $2.8 million to $19.3 million, with earnings per common share increasing to $0.53, surpassing market expectations [1] - The loan to deposit ratio remained strong at 99%, indicating effective management of deposits in alignment with loan funding needs [2] Financial Performance - The total assets of MainStreet Bancshares as of June 30, 2025, were $2,114.8 million, a decrease from $2,222.8 million in the previous quarter [7] - Total deposits decreased to $1,798.5 million from $1,908.3 million, reflecting a 5.8% decline [8] - The company maintained a strong capital position with total stockholders' equity of $213.5 million [8] Loan and Deposit Details - The total gross loans amounted to $1,790.9 million, a decrease of 2.4% from the previous quarter [9] - The composition of loans included 18.3% in construction and land development loans, 25.3% in residential real estate loans, and 50.9% in commercial real estate loans [9] - Non-interest bearing deposits accounted for 18.4% of total deposits, while interest-bearing deposits made up the remaining 81.6% [9] Strategic Initiatives - The company has an active share repurchase plan with approximately $3.1 million in available capacity, indicating a commitment to returning value to shareholders [2] - MainStreet Bank continues to focus on enhancing customer experience through robust online and mobile banking solutions [3][4] - The bank's commitment to credit discipline has resulted in a well-managed loan portfolio, contributing to the overall financial performance [2]

Financial Data and Key Metrics Changes - For Q2 2025, the company reported GAAP net income of $51.1 million and diluted EPS of $1.20, resulting in a 1.04% return on assets and a 6.68% return on average common equity [21] - Adjusted operating net income was $53.5 million or $1.25 diluted EPS, reflecting a 1.09% return on assets and a 6.99% return on average tangible common equity [21] - Tangible book value per share increased by $0.99 during the quarter, driven by solid earnings retention [22] Business Line Data and Key Metrics Changes - C&I loans increased by 3.4% in Q2, while CRE and construction loan balances decreased by 1.7% [8][24] - The Wealth Management business grew AUA by 4% to $7.4 billion, with total Investment Management revenues increasing by 1.4% from the previous quarter [17] Market Data and Key Metrics Changes - Non-performing loans decreased from $89.5 million to $56.2 million, representing 39 basis points of total loans [24] - Core deposit growth remained strong, with period-end balances up $218 million or 1.39% for the quarter [23] Company Strategy and Development Direction - The company aims to reduce its CRE concentration below 300%, with current levels at 274% and expectations to reach 290% by year-end 2027 [9] - The acquisition of Enterprise Bank is expected to enhance shareholder value and provide synergies from a broader product set [14][15] Management's Comments on Operating Environment and Future Outlook - Management noted that while economic uncertainty has improved, the impact of tariffs and federal government actions remains unclear, causing customers to pause significant expansion plans [7] - The company recognizes the need to improve profitability metrics and believes that prudent expense and capital management will unlock inherent earnings power [19] Other Important Information - The company announced a $150 million stock buyback plan to be opportunistic in buying back stock [5][22] - The core conversion of the entire bank is scheduled for May 2026, which is expected to improve technology infrastructure and support future growth [16] Q&A Session Summary Question: Where were new loan originations during the quarter? - Management indicated good loan originations across most segments, with a competitive landscape remaining challenging [37][38] Question: Why has small business lending been successful? - The success is attributed to experienced bankers and a centralized underwriting unit that allows for quick loan request turnaround [40][41] Question: What is the outlook for net interest margin (NIM)? - Management expects NIM to gradually rise if the Fed cuts rates, with a projected margin in the mid-3.6% range for Q3 [47][48] Question: Is the worst behind for credit issues? - Management is cautious, stating that while progress has been made, it is not ready to declare that the worst is over [49][50] Question: Can you provide details on a large loan modification? - A large syndicated loan was restructured into a Note A and Note B structure, with no cash payments until mid-2026 [53][55] Question: What is the expected CET1 ratio? - The expected CET1 ratio is projected to be in the mid-12% range, around 12.5% [89]

Core Viewpoint - U.S. Bancorp (USB) is expected to report year-over-year increases in revenues and earnings for Q2 2025, benefiting from lower expenses and higher non-interest income [1] Group 1: Financial Performance Expectations - The company anticipates net interest income (NII) for Q2 2025 to be between $4.1 billion and $4.2 billion, with a consensus estimate of $4.01 billion, reflecting a marginal increase from the previous quarter [2][8] - The consensus estimate for total revenues in Q2 2025 is $7.06 billion, indicating a rise of 3.3% from the year-ago figure [13] - The Zacks Consensus Estimate for average earning assets is $611.2 million, suggesting a slight sequential increase [4] Group 2: Non-Interest Income and Trading Activity - Non-interest income is projected to rise by 3.3% due to gains in trading, mortgage, and card revenues, with total non-interest income estimated at $2.93 billion [9][8] - Trading volumes in equity derivatives and corporate bonds have increased, with the consensus estimate for commercial product revenues at $391 million, reflecting a 2.4% increase from the prior quarter [5] Group 3: Loan Activity and Market Conditions - Lending activity remained strong in Q2 2025, supported by a resilient labor market and easing inflation, with notable demand for commercial and industrial loans [3] - Mortgage banking revenues are expected to reach $179.6 million, indicating a 3.8% increase from the previous quarter, despite mortgage rates fluctuating in the mid-to-upper 6% range [6] Group 4: Expense Management and Asset Quality - The company aims to keep non-interest expenses at or below $4.2 billion in Q2 2025, despite higher costs related to compensation and employee benefits [10][9] - The Zacks Consensus Estimate for non-performing loans is $1.72 billion, indicating a rise of 1.8% from the prior quarter [10] Group 5: Earnings Expectations - U.S. Bancorp has a positive Earnings ESP of +0.21%, indicating a high likelihood of beating earnings estimates [11] - The consensus estimate for Q2 earnings is $1.07, reflecting a 9.2% increase from the year-ago reported number [12]