Financial Highlights - The company reported a Return on Average Assets of 1.24%, a growth of 10 basis points compared to the last quarter[7] - Pre-Provision Net Revenue (PPNR) Return on Average Assets was 1.70%, up 27 basis points from the previous quarter[7] - Fully diluted Earnings Per Share (EPS) reached $1.27, a 10% increase compared to the last quarter, driven by improved net interest margin and increased non-interest income[8] - PPNR amounted to $13.9 million, or $1.77 per share, reflecting a 21% increase compared to the last quarter[8] Loan and Deposit Trends - Loan balances increased by $49 million compared to the last quarter, with approximately $220 million in funded originations, including $22 million in SBA loans[8] - Average low-cost deposits increased by $20 million compared to the last quarter, while total deposit costs decreased by 10 basis points to 3.30%[7,8] - Brokered deposits were reduced by $15 million compared to the last quarter and $96 million year-to-date[8] Asset Quality and Capital - Non-Performing Assets (NPAs) to Total Assets ratio was 0.56%, with the NPA balance decreasing by 28% compared to the last quarter due to the collection of $5 million in SBA-guaranteed balances and the sale of $2 million in non-performing loans[7] - Tangible book value stood at $36.84, an increase of $1.19 compared to the last quarter and $3.08 compared to the same quarter last year[8] - The Consolidated CET1 ratio was 10.39%, and the Bank Total Capital ratio was 13.47%[8] Strategic Initiatives - The company has repriced approximately $1 billion of time deposits year-to-date, resulting in an annualized benefit of approximately $7.6 million[36] - The company reduced reliance on brokered deposits, with brokered deposit balances decreasing by $96 million year-to-date[84]

Financial Performance - The company reported a Return on Average Assets of 1.14%, a 28 basis points increase compared to the last quarter[7] - Net Interest Margin was reported at 3.10%, a 29 basis points expansion from the last quarter due to an improved funding profile[7] - Fully diluted Earnings Per Share (EPS) reached $1.15, a 32% increase compared to the last quarter, driven by improved net interest margin and increased non-interest income[8] - Pre-Provision Net Revenue (PPNR) was $11.4 million, or $1.46 per share, a 21% increase compared to the last quarter[8] - Non-interest income grew by $0.5 million, or 34%, compared to the last quarter, driven by $1.1 million gains realized on SBA Loan sales[7] Balance Sheet and Capital - Loan balances increased by $24 million compared to the last quarter, based on $170 million of funded originations[8] - Non-performing assets (NPAs) improved to 0.78% of total assets[7] - Non-interest bearing deposits grew by $48 million from existing channels[7] - Tangible book value was $35.65, up $1.09 compared to the last quarter and up $2.04 compared to the prior year quarter[8] - The Consolidated CET1 ratio was 10.17%, and the Bank Total Capital ratio was 13.28%[8] Deposit and Funding - Deposit costs improved to 3.40%, a 20 basis points decrease compared to the last quarter, with a June 2025 'exit' rate of 3.28%[8] - The company experienced $48 million growth in non-interest bearing deposits compared to the last quarter, and $75 million year-to-date[8]