Financial Data and Key Metrics Changes - The company reported net income of $109.8 million or $1.6 per diluted share in the second quarter, a notable 21% increase year-over-year [10] - Return on assets (ROA) improved to 1.65%, and return on tangible common equity rose to 15.8% [11] - Efficiency ratio improved to 51.63% from 52.83% in the previous quarter, indicating better operating leverage [10][11] - Tangible book value per share increased to $41.32, reflecting a strong 15.5% annualized growth [11] Business Line Data and Key Metrics Changes - Loan growth was primarily driven by commercial and industrial (C&I) loans, with a total loan production of $1.9 billion, up from $1.5 billion in the previous quarter [16] - Non-interest income increased by approximately $4.9 million, largely due to a 36% growth in mortgage production [14] - Total non-interest expense rose by $4.2 million, mainly due to higher salaries and employee benefits related to increased mortgage production [14] Market Data and Key Metrics Changes - Non-interest bearing deposits grew over 3% annualized, increasing their share to 31% of total deposits from 30.8% in the previous quarter [17] - The company experienced a seasonal decline in cyclical municipal deposits, offset by an increase in broker deposits [17] Company Strategy and Development Direction - The company remains focused on organic growth, with plans to utilize excess capital for growth opportunities, stock buybacks, and dividends [28][29] - Management emphasized the importance of maintaining a strong core deposit base and leveraging growth in attractive Southeastern markets [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for the remainder of 2025 and into 2026, citing a robust margin, strong capital, and liquidity [9] - There is a cautious but positive outlook on loan growth, with expectations for mid-single-digit growth in loans and deposits [18] Other Important Information - The company repurchased approximately $12.8 million in common stock during the quarter [11] - The provision for credit losses was $2.8 million, with reserves remaining strong at 162% of loans [15] Q&A Session Summary Question: Loan growth trends and competition - Management noted a resurgence in loan activity and expected third-quarter activity to be similar to the second quarter, with increased competition [24][25] Question: Future growth opportunities and capital deployment - The company plans to focus on organic growth first, with stock buybacks and dividends as secondary options, while being cautious about M&A [27][29] Question: Deposit growth and margin outlook - Management indicated that deposit growth would continue, with a focus on non-interest bearing deposits, and anticipated some pressure on deposit costs [44][46] Question: Mortgage segment trends and capacity - The company is prepared for a potential refinancing wave and has the capacity to handle increased production without needing additional hires [66][67] Question: Overall competitive landscape and charge-offs - Management observed increased competition beyond pricing, with a focus on treasury management and deposit growth [55][56]