Financial Performance - The company reported net income of $10.4 million, or $1.77 per diluted share, for Q2 2025, a slight decrease from $10.6 million, or $1.80 per diluted share, in the prior quarter, but an increase from $7.8 million, or $1.35 per diluted share, in Q2 2024 [2][5] - Year-over-year net income increased by 33.5% [5] - The return on average assets was 1.69% and the return on average tangible common equity was 17.44% [5] Deposits and Funding - Core deposits reached $2.07 billion as of June 30, 2025, an increase of $22.0 million or 1.1% from March 31, 2025, and an increase of $327.6 million or 18.8% year over year [5][17] - Total deposits were $2.16 billion, a decrease of $29.2 million or 1.3% from March 31, 2025, with a reduction in brokered deposits of $51.2 million [5][17] - The total cost of deposits was 2.08%, down from 2.22% in the prior quarter and 2.67% in Q2 2024, reflecting a 6.4% improvement quarter over quarter and a 22.3% improvement year over year [5][9] Loan Portfolio - Loans held-for-investment totaled $2.08 billion, a slight increase of $2.4 million or 0.1% from March 31, 2025, and a 5.1% increase year over year [5][16] - The provision for credit losses was $1.3 million, compared to $0.3 million in the prior quarter and $2.1 million in Q2 2024 [5][10] Net Interest Margin - The net interest margin was 4.94% for Q2 2025, an increase from 4.61% in the prior quarter and 4.48% in Q2 2024 [5][9] - The yield on interest-earning assets was 6.89% for Q2 2025, compared to 6.70% for the prior quarter [9] Noninterest Income and Expenses - Noninterest income was $1.7 million for Q2 2025, up from $1.6 million in the prior quarter and $1.5 million in Q2 2024 [11] - Noninterest expense increased to $15.7 million for Q2 2025, compared to $14.1 million in the prior quarter and $13.0 million in Q2 2024, primarily due to higher compensation and benefits costs [12] Asset Quality - The allowance for loan losses was $28.2 million or 1.35% of loans held-for-investment as of June 30, 2025, up from $26.4 million or 1.27% as of March 31, 2025 [19] - Nonperforming assets were 0.66% of total assets as of June 30, 2025, compared to 0.63% as of March 31, 2025 [19] Capital Ratios - The bank's capital ratios exceeded the levels established for "well capitalized" institutions, with a Tier I leverage ratio of 10.70%, a Tier I risk-based capital ratio of 12.12%, and a total risk-based capital ratio of 13.37% as of June 30, 2025 [22]